Innovative Solutions & Support Inc. Files 2023 Annual Report

TL;DR

<b>Innovative Solutions & Support Inc. filed its 2023 10-K report detailing financial performance and stock-based compensation.</b>

AI Summary

INNOVATIVE SOLUTIONS & SUPPORT INC (ISSC) filed a Annual Report (10-K) with the SEC on January 12, 2024. The 10-K filing covers the fiscal year ending September 30, 2023. The company is incorporated in Pennsylvania and operates in Computer Programming Services. Key financial data points from previous fiscal years are referenced, including common stock and retained earnings. Stock-based compensation plans, including employee and non-employee stock options and RSUs, are detailed. The filing references specific accounting standards and members for financial reporting.

Why It Matters

For investors and stakeholders tracking INNOVATIVE SOLUTIONS & SUPPORT INC, this filing contains several important signals. This 10-K provides a comprehensive overview of the company's financial health and operational status for the fiscal year 2023, crucial for investors assessing performance. Details on stock-based compensation plans are important for understanding potential dilution and executive incentives.

Risk Assessment

Risk Level: — INNOVATIVE SOLUTIONS & SUPPORT INC shows moderate risk based on this filing. The filing is a standard 10-K annual report, indicating routine disclosure rather than immediate financial distress or significant new risks.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-K to understand the company's performance and outlook.

Key Numbers

• 2023-09-30 — Fiscal Year End (Conformed period of report)
• 2024-01-12 — Filing Date (Filed as of date)
• PA — State of Incorporation (State of incorporation)
• 7371 — SIC Code (Standard Industrial Classification)

Key Players & Entities

• INNOVATIVE SOLUTIONS & SUPPORT INC (company) — Filer name
• Pennsylvania (location) — State of incorporation and business address
• 7371 (other) — Standard Industrial Classification code for Computer Programming Services
• 2023-09-30 (date) — Fiscal year end
• 2024-01-12 (date) — Filing date

Forward-Looking Statements

• Innovative Solutions & Support Inc. will continue to utilize its 2019 Stock-Based Incentive Compensation Plan to incentivize employees and non-employees. (Innovative Solutions & Support Inc.) — high confidence, target: 2024-09-30
• The company's equity structure, including common stock and retained earnings, will likely see further adjustments in the next fiscal year due to ongoing operations and compensation plans. (Innovative Solutions & Support Inc.) — medium confidence, target: 2024-09-30

FAQ

Industry Context

Innovative Solutions & Support Inc. operates within the Computer Programming Services industry, a sector focused on software development and related IT services.

Regulatory Implications

The filing adheres to the requirements of the Securities Exchange Act of 1934, mandating annual reporting for public companies.

What Investors Should Do

1. Analyze the company's financial statements for the fiscal year ending 09/30/2023.
2. Examine the details of stock-based compensation plans, including options and RSUs.
3. Review the company's business description and industry classification (SIC 7371).

Key Dates

• 2023-09-30: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-01-12: Filing Date — Date the 10-K was officially filed with the SEC.

Glossary

10-K

An annual report required by the U.S. Securities and Exchange Commission (SEC), which gives a comprehensive summary of a company's financial performance. (This filing provides the primary source of detailed financial and operational information for the fiscal year.)

SIC Code

Standard Industrial Classification code used to categorize businesses based on their primary activity. (Indicates the company's industry sector, which is Computer Programming Services (7371).)

Stock-Based Compensation

Compensation provided to employees in the form of stock options or restricted stock units. (Details are provided regarding employee and non-employee stock options and RSUs under specific plans.)

Year-Over-Year Comparison

This is the initial filing analyzed, so no comparison to a previous filing is available.

Filing Documents

• issc-20230930x10k.htm (10-K) — 2168KB
• issc-20230930xex4d1.htm (EX-4.1) — 14KB
• issc-20230930xex21.htm (EX-21) — 2KB
• issc-20230930xex23d1.htm (EX-23.1) — 4KB
• issc-20230930xex31d1.htm (EX-31.1) — 12KB
• issc-20230930xex31d2.htm (EX-31.2) — 13KB
• issc-20230930xex32d1.htm (EX-32.1) — 8KB
• issc-20230930xex97.htm (EX-97) — 37KB
• 0001558370-24-000248.txt (&nbsp;) — 10089KB
• issc-20230930.xsd (EX-101.SCH) — 59KB
• issc-20230930_cal.xml (EX-101.CAL) — 80KB
• issc-20230930_def.xml (EX-101.DEF) — 308KB
• issc-20230930_lab.xml (EX-101.LAB) — 647KB
• issc-20230930_pre.xml (EX-101.PRE) — 504KB
• issc-20230930x10k_htm.xml (XML) — 1816KB

Business

Business 4 Item 1A.

Risk Factors

Risk Factors 16 Item 1B. Unresolved Staff Comments 26 Item 2.

Properties

Properties 26 Item 3.

Legal Proceedings

Legal Proceedings 26 Item 4. Mine Safety Disclosures 27 PART II Item 5. Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 27 Item 6. Selected Consolidated Financial Data 28 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 29 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 39 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 39 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 70 Item 9A.

Controls and Procedures

Controls and Procedures 70 Item 9B. Other Information 70 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 70 PART III Item 10. Directors, Executive Officers and Corporate Governance 71 Item 11.

Executive Compensation

Executive Compensation 71 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 71 Item 13. Certain Relationships and Related Transactions and Director Independence 72 Item 14. Principal Accounting Fees and Services 72 PART IV Item 15. Exhibits and Financial Statement Schedules 73 Item 16. Form 10-K Summary 74 1 Table of Contents

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K contains forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These forward-looking statements are based largely on current expectations and projections about future events and trends affecting the business, are not guarantees of future performance, and involve a number of risks, uncertainties and assumptions that are difficult to predict. In this Annual Report on Form 10-K, the words "anticipates," "believes," "may," "will," "estimates," "continues," "anticipates," "intends," "forecasts," "expects," "plans," "could," "should," "would," "is likely,"" projected," "might," "potential," "preliminary," "provisionally," and similar expressions, as they relate to the business or to its management, are intended to identify forward looking statements, but they are not exclusive means of identifying them. Unless the context otherwise requires, all references herein to "IS&S," the "Registrant," the "Company," "we," "us" or "our" are to Innovative Solutions and Support, Inc. and its consolidated subsidiaries. ThrustSense and COCKPIT/IP, among others, are trademarks of the Company. All other trademarks appearing herein are held by their respective owners. Subsequent use of the Company's trademarks in this Annual Report on Form 10-K may occur without the applicable superscript symbol ( or TM) in order to facilitate the readability of this Annual Report on Form 10-K and are not a waiver of rights that may be associated with the relevant trademarks. The forward-looking statements in this Annual Report on Form 10-K are only predictions, and actual events or results may differ materially. In evaluating such statements, a number of risks, uncertainties and other factors could cause actual results, performance, financial condition, cash flows, prospects and oppor

Business

Item 1. Business. Overview The Company was incorporated in Pennsylvania on February 12, 1988. The Company operates in one business segment as a systems integrator that designs, develops, manufactures, sells and services air data equipment, engine display systems, standby equipment, primary flight guidance, autothrottles and cockpit display systems for retrofit applications and original equipment manufacturers ("OEMs"). The Company supplies integrated flight management systems ("FMS"), flat panel display systems ("FPDS"), FPDS with autothrottle, air data equipment, integrated standby units, integrated standby units with autothrottle, advanced Global Positions System ("GPS") receivers that enable reduced carbon footprint navigation, communication and navigation products and inertial reference units. The Company has continued to position itself as a system integrator, which provides the Company with the capability and potential to generate more substantive orders over a broader product base. This strategy, as both a manufacturer and integrator, is designed to leverage the latest technologies developed for the computer and telecommunications industries into advanced and cost-effective solutions for the general aviation, commercial air transport, the U.S. Department of Defense (the "DoD")/governmental and foreign military markets. This approach, combined with the Company's industry experience, is designed to enable the Company to develop high-quality products and systems, to reduce product time to market and to achieve cost advantages over products offered by its competitors. The Company has been working with advances in technology to provide pilots with more information to enhance both the safety and efficiency of flying and has developed its COCKPIT/IP Cockpit Information Portal product line, which incorporates proprietary technology, lower cost relative to the competition, reduced power consumption, decreased weight, and increased functionality. The Company has

View Full Filing

View this 10-K filing on SEC EDGAR