Innovative Solutions & Support Inc. Files 2024 10-K

TL;DR

ISSC filed its 2024 10-K. All systems go for the year ahead.

AI Summary

Innovative Solutions & Support Inc. filed its 10-K for the fiscal year ending September 30, 2024. The company, based in Exton, PA, operates in computer programming services. Key financial details and operational aspects are outlined in this comprehensive annual report.

Why It Matters

This filing provides investors and stakeholders with a detailed overview of Innovative Solutions & Support Inc.'s financial performance, strategic initiatives, and risk factors for the fiscal year 2024.

Risk Assessment

Risk Level: medium — The filing is a standard annual report and does not contain immediate red flags or significant new risks.

Key Numbers

• 09-30 2024 — Fiscal Year End (Reporting period for the 10-K)
• 2021-10-01 — Common Stock Start Date (Indicates the beginning of the period for common stock reporting.)
• 2022-09-30 — Common Stock End Date (Indicates the end of the period for common stock reporting.)
• 2024-09-30 — Treasury Stock Date (Reporting date for treasury stock information.)
• 2024-09-30 — Retained Earnings Date (Reporting date for retained earnings.)

Key Players & Entities

• INNOVATIVE SOLUTIONS & SUPPORT INC (company) — Filer
• 0001558370-24-016501 (filing_id) — Accession Number
• 20240930 (date) — Fiscal Year End
• Exton, PA (location) — Business Address
• 720 PENNSYLVANIA DRIVE (address) — Business Street 1
• 610 646 9800 (phone_number) — Business Phone

FAQ

Key Financial Figures

• $47.2 m — mber 30, 2024, we reported net sales of $47.2 million, an increase of 35.6% on a year-o
• $34.8 million — of 35.6% on a year-over-year basis from $34.8 million in the fiscal year ended 2023, and net
• $7.0 — scal year ended 2023, and net income of $7.0 increased 16.1% from $6.0 million in fi
• $6.0 million — net income of $7.0 increased 16.1% from $6.0 million in fiscal 2023. At September 30, 2024,
• $89.2 million — At September 30, 2024, our backlog was $89.2 million compared with $13.5 million at Septembe
• $13.5 million — backlog was $89.2 million compared with $13.5 million at September 30, 2023. Backlog at Septe
• $74.3 million — Backlog at September 30, 2024 included $74.3 million of acquired backlog as a result of the
• $35.9 million — o the Company for cash consideration of $35.9 million. In July 2024, the Company entered int
• $4.2 million — d in June 2023. Total consideration was $4.2 million in cash. On September 27, 2024, the C
• $14.2 million — cts to the Company for consideration of $14.2 million in cash. The exclusive licensing of the
• $6 million — nsion is expected to cost approximately $6 million. Sales & Marketing Our multi-channe

Filing Documents

• issc-20240930x10k.htm (10-K) — 2203KB
• issc-20240930xex4d1.htm (EX-4.1) — 14KB
• issc-20240930xex19d1.htm (EX-19.1) — 141KB
• issc-20240930xex21.htm (EX-21) — 2KB
• issc-20240930xex23d1.htm (EX-23.1) — 4KB
• issc-20240930xex31d1.htm (EX-31.1) — 13KB
• issc-20240930xex31d2.htm (EX-31.2) — 13KB
• issc-20240930xex32d1.htm (EX-32.1) — 9KB
• issc-20240930xex97.htm (EX-97) — 37KB
• 0001558370-24-016501.txt ( ) — 10400KB
• issc-20240930.xsd (EX-101.SCH) — 58KB
• issc-20240930_cal.xml (EX-101.CAL) — 77KB
• issc-20240930_def.xml (EX-101.DEF) — 287KB
• issc-20240930_lab.xml (EX-101.LAB) — 615KB
• issc-20240930_pre.xml (EX-101.PRE) — 479KB
• issc-20240930x10k_htm.xml (XML) — 1871KB

Business

Business 4 Item 1A.

Risk Factors

Risk Factors 12 Item 1B. Unresolved Staff Comments 26 Item 1C. Cybersecurity 26 Item 2.

Properties

Properties 27 Item 3.

Legal Proceedings

Legal Proceedings 27 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 40 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 72 Item 9A.

Controls and Procedures

Controls and Procedures 72 Item 9B. Other Information 73 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 73 PART III Item 10. Directors, Executive Officers and Corporate Governance 73 Item 11.

Executive Compensation

Executive Compensation 73 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 73 Item 13. Certain Relationships and Related Transactions and Director Independence 74 Item 14. Principal Accounting Fees and Services 74 PART IV Item 15. Exhibits and Financial Statement Schedules 75 Item 16. Form 10-K Summary 77 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 . INTRODUCTION As used in this Annual Report on Form 10-K, unless expressly stated otherwise or the context otherwise requires, the terms "ISSC" or "the Company", "we", "us" and "our", refers to Innovative Solutions & Support and its subsidiaries. Incorporated in Pennsylvania in 1988, ISSC is a vertically integrated provider of flight solutions and equipment to commercial air transport, general aviation markets, the United States Department of Defense ("DoD") and allied foreign militaries. We operate in one business segment that designs, develops, manufactures, sells and services avionics products and systems for retrofit applications and Original Equipment Manufacturers ("OEMs"). In the fiscal year 2024 ended September 30, 2024, we reported net sales of $47.2 million, an increase of 35.6% on a year-over-year basis from $34.8 million in the fiscal year ended 2023, and net income of $7.0 increased 16.1% from $6.0 million in fiscal 2023. At September 30, 2024, our backlog was $89.2 million compared with $13.5 million at September 30, 2023. Backlog at September 30, 2024 included $74.3 million of acquired backlog as a result of the September 27, 2024 acquisition. Backlog is converted into sales in future periods as work is performed or deliveries are made. We expect to recognize approximately 65% of our backlog over the next 12 months and approximately 98% over the next 24 months as revenue, with the remainder recognized thereafter. During fiscal 2024, we made important progress on our commercial growth strategy highlighted by several key awards and contract wins across our commercial, military and business aviation markets. In October 2024, we announced our ThrustSense Autothrottle system was selected by the US Army to be installed on their C-12 (B200) aircraft equipped with ProLine21 avionics suites. Deliveries of the IS&S ThrustSense Autothrottle system for this application began in September 2024, with ongoing installations anticipated. I

View Full Filing

View this 10-K filing on SEC EDGAR