INNOVATIVE SOLUTIONS & SUPPORT INC

• Company name and structure

  • Innovative Solutions & Support, Inc. (doing business as Innovative Aerosystems).
  • Incorporated in Pennsylvania in 1988.
  • Operates in a single business segment: design, development, manufacture, sale and service of avionics products and systems for retrofit applications and OEMs.

• Headquarters and facilities

  • Principal executive office: 720 Pennsylvania Drive, Exton, Pennsylvania 19341.
  • Manufacturing, design and office facility in Exton, PA — expanded to 85,000 square feet (originally ~45,000, plus ~40,000 sq ft expansion completed in Q2 FY2025).

• Rebranding and trade names

  • Rebranded to “Innovative Aerosystems” on October 6, 2025.
  • Trademarks mentioned include ThrustSense® and COCKPIT/IP®.

• Employees and human capital

  • 147 full‑time employees as of September 30, 2025 (133 as of September 30, 2024).
  • ~37% of full‑time employees in engineering‑related roles (as of September 30, 2025).
  • No unionized employees.

• Products and technology (representative)

  • Integrated flight‑deck systems (COCKPIT/IP®) — primary flight/navigation displays, engine displays, crew alerting, integrated standby instruments, mission displays.
  • Flat panel display systems (FPDS) and 19" multifunction displays with integrated mission computer.
  • Flight management systems (FMS), mission computers and display generators.
  • ThrustSense® Autothrottle (turboprop autothrottle — selected by U.S. Army for C‑12/B200 with ProLine21®; deliveries began Sept 2024).
  • Flight control computers.
  • Air data systems, sensors, inertial reference units, magnetometers, GPS receivers.
  • Communication systems (radios, audio panels, radio management units).
  • Advanced flight actuators (linear and rotary smart-actuators).
  • Integrity Checking Processor and Zooming features in displays; the company uses internally developed IP plus licensed third‑party technologies.

• Intellectual property

  • Total patents (U.S. + international): 171 patents as of September 30, 2025 (46 U.S. patents and 125 international patents).
  • 17 trademarks.

• Markets and customers

  • End markets: commercial air transport, business/general aviation, DoD and allied foreign militaries (retrofit and OEM).
  • Notable customers named: U.S. federal government (DoD, Department of Interior, DHS), Air Transport Services Group (ATSG), Amazon, American Airlines, Boeing, Deutsche Post DHL Group, FedEx, Icelandair, L3Harris, Lockheed Martin, Pilatus, Sierra Nevada Corporation, Textron, Department of National Defense (Canada), and others.
  • Customer concentration: in FY2025 the three largest customers were Lockheed Martin (36% of total revenue), Pilatus (8%), and Boeing (5%).
  • Across fiscal years ended Sept 30, 2025 / 2024 / 2023 the Company derived 57% / 42% / 54% of total sales from its top five customers (not always the same five).
  • Accounts receivable and contract asset exposure for the top five customers: $8.7M (2025), $7.6M (2024), $3.5M (2023).

• Sales channels and go‑to‑market

  • Multi‑channel sales: OEMs, MROs, avionics integrators, aircraft modification centers, DoD and defense contractors, aircraft operators, distributors and third‑party sales reps (commissioned as needed).
  • Supports both OEM production contracts and retrofit aftermarket installs.

• Recent notable contracts / program wins

  • ThrustSense® Autothrottle selected by U.S. Army for C‑12 (B200) aircraft with ProLine21® (selection announced Oct 2024; deliveries began Sept 2024).
  • Awarded a multi‑million dollar production contract (Aug 2024) from a major aerospace company to supply a 19" MFD with integrated mission computer.
  • Multi‑year supplier relationships with Pilatus (PC‑24 utilities management system), Textron (King Air 260/360 ThrustSense®), and Boeing (KC‑46A, KC‑767, T‑7A programs referenced).

• Strategic focus and business model

  • Vertically integrated systems integrator (in‑house design, manufacture, testing, lifecycle support).
  • Focus on retrofit opportunity (upgrading aging fleets), flat panel displays, autothrottle for turboprops, and expanding military product lines.
  • Growth through organic product development and opportunistic acquisitions / licensing.

• Recent acquisitions / licenses (Honeywell transactions)

  • June 2023: Asset Purchase & License Agreement with Honeywell — inertial, communication & navigation product lines; consideration $35.9M cash (licenses, inventory, equipment, contract assignments).
  • July 2024: Exclusive license and asset purchase for additional Honeywell communication and navigation lines; consideration $4.2M cash (asset acquisition).
  • Sept 27, 2024: Asset Purchase & License Agreement with Honeywell — various generations of military display generators and flight control computers (inventory, equipment, contract assignments, IP licenses); consideration $14.2M cash.
  • Honeywell continued to manufacture and hold inventory for some acquired product lines immediately after the Sept 2024 transaction; production has been transitioning to the Company’s facilities (temporary revenue fluctuations noted).

• Backlog

  • Backlog as of September 30, 2025: $77.4289 million (down from $89.2326 million at Sept 30, 2024).
  • Note: Sept 30, 2024 backlog included $74.3 million of acquired backlog from the Sept 27, 2024 acquisition.
  • Company expects to recognize ~44% of backlog in the next 12 months and ~92% in the next 24 months.

• Financial highlights (consolidated GAAP; fiscal year ended September 30)

  • FY2025 (year ended Sept 30, 2025)
    • Net sales: $84.2969 million (78.6% increase vs FY2024).
    • Net income: $15.6277 million (123.3% increase vs FY2024).
    • Gross profit: $40.5119 million (48.1% gross margin).
    • Cost of sales: $43.7850 million (51.9% of net sales).
    • Operating income: $20.0720 million (24.0% of net sales).
    • R&D expense: $3.9921 million (4.7% of net sales).
    • SG&A expense: $16.4478 million (19.4% of net sales).
    • Net income per diluted share: $0.88.
    • Cash and cash equivalents (9/30/2025): $2.6936 million.
    • Accounts receivable (9/30/2025): $12.9565 million.
    • Total assets (9/30/2025): $103.3602 million.
    • Total liabilities (9/30/2025): $38.7576 million.
    • Shareholders’ equity (9/30/2025): $64.6025 million.
    • Goodwill (9/30/2025): $6.7031 million.
    • Intangible assets, net (9/30/2025): $23.5826 million.
    • Property and equipment, net (9/30/2025): $18.8045 million.
    • Backlog (9/30/2025): $77.4289 million.
  • FY2024 (year ended Sept 30, 2024)
    • Net sales: $47.1980 million.
    • Net income: $6.9984 million.
    • Net income per diluted share: $0.40.
    • Cash and cash equivalents (9/30/2024): $0.5390 million.
    • Backlog (9/30/2024): $89.2326 million (included $74.3M acquired backlog).

• Balance sheet / capital structure details (as of Sept 30, 2025)

  • Common shares issued: 17,970,453 (17,842,245 issued at 9/30/2024).
  • Treasury stock: 339,644 shares (cost $3,460,972).
  • Outstanding shares reported as of Nov 30, 2025: 17,752,354.
  • Revolving/credit facility (2025 Credit Agreement): J.P. Morgan facility up to $100M consisting of a $25M initial term loan, $30M revolving facility and $45M delayed draw term loan (entered July 18, 2025). This replaced prior PNC facility (outstanding PNC borrowings were repaid as part of the transition).
  • Current portion of long‑term debt (9/30/2025): $2.4388M; long‑term debt: $21.7000M.

• Liquidity and cash flow (selected)

  • Net cash provided by operating activities (FY2025): $13.3033M (FY2024: $5.7962M).
  • Net cash used in investing activities (FY2025): $6.5121M (FY2024: $16.8814M, including acquisitions).
  • Net cash used in financing activities (FY2025): $4.6366M (FY2024: provided $8.5270M).

• Regulatory / quality certifications and environment

  • Company is ISO 9001 and AS9100D certified.
  • Subject to FAA and other aviation regulations for certification, manufacturing and quality control.
  • Environmental, occupational safety and other federal/state regulations apply (CERCLA, RCRA, OSHA referenced).

• Stock market and corporate status

  • Common stock (ISSC) listed on Nasdaq Global Select Market.
  • Market value of common stock held by non‑affiliates (3/31/2025): ~$81.8 million (based on Nasdaq close that day).
  • Reporting status: non‑accelerated filer; smaller reporting company.

• Additional operational details explicitly stated

  • Backlog conversion expectations: ~44% recognized in next 12 months; ~92% recognized in next 24 months.
  • As of Sept 30, 2025 the Company expected to increase manufacturing capacity >300% following the Exton facility expansion.
  • The Company reported holding both exclusive and non‑exclusive licenses from Honeywell for acquired product lines; certain Honeywell production and inventory supported the acquired lines during transition.

(End of summary — all items above are drawn directly from the provided 10‑K excerpts.)