Financial Performance - Net sales for fiscal year 2024 were $47,198,020, with a gross profit of $25,913,591[4] - Operating income for fiscal year 2024 was $9,661,537, compared to $7,359,048 in fiscal year 2023[4] - Net income for fiscal year 2024 was $6,998,380, with a basic net income per common share of $0.40[4] - Company reported net sales of $47.2 million in fiscal year 2024, a 35.6% increase from $34.8 million in fiscal year 2023[140] - Net income increased to $7.0 million in fiscal year 2024, up 16.1% from $6.0 million in fiscal year 2023[140] - The company's net income for fiscal year 2023 was $6.0 million, compared to $5.5 million in fiscal year 2022, with fully diluted net income per share of $0.35 in 2023 versus $0.32 in 2022[108] Expenses and Costs - R&D expenses were $3.1 million in fiscal year 2023, decreasing to 9.0% of Net sales from 9.8% in fiscal year 2022[14] - Cost of sales was $13.5 million, or 38.7% of Net sales, in fiscal year 2023, with a gross margin of 61.3% compared to 60.1% in fiscal year 2022[18] - Income tax expense was $1.6 million in fiscal year 2023, with an effective tax rate of 21.1% compared to 24.8% in fiscal year 2022[15] Cash Flow and Financing - Net cash provided by financing activities was $8.5 million for fiscal year 2024, consisting of $43.8 million in payments against the line of credit offset by $52.3 million in additional borrowings[23] - Cash used in investing activities was $16.8 million for fiscal year 2024, primarily due to the $14.2 million acquisition of military display generators and flight control computers[22] Assets and Liabilities - Total assets as of September 30, 2024, were $82,382,261, compared to $62,957,451 in 2023[4] - Total assets increased to $82.38 million in 2024 from $62.96 million in 2023[74] - Accounts receivable rose to $12.61 million in 2024 compared to $9.74 million in 2023[74] - Inventories grew to $12.73 million in 2024 from $6.14 million in 2023[74] - Long-term debt increased to $28.03 million in 2024 from $17.50 million in 2023[74] - Retained earnings improved to $12.67 million in 2024 from $5.67 million in 2023[74] Revenue and Sales - The company's net sales outside the United States were $22.8 million in fiscal year 2024, $15.5 million in 2023, and $11.1 million in 2022[45] - Customer service sales were $11.1 million in 2023, down from $4.9 million in 2022[83] - Engineering and development contracts net sales were $1.1 million in 2023, down from $0.4 million in 2022[83] - Top five customers accounted for 42% of total sales in 2024, down from 54% in 2023[77] - In fiscal year 2024, the company's three largest customers, Pilatus, Textron, and Honeywell, accounted for 23%, 7%, and 7% of total revenue, respectively[125] Acquisitions and Agreements - The company acquired additional key assets and entered into an exclusive license agreement with Honeywell in July 2024 for $4.2 million in cash[144] - Company entered into a $14.2 million agreement with Honeywell for military display generators and flight control computers in September 2024[145] - Company entered into a $35.9 million agreement with Honeywell for inertial, communication, and navigation product lines in June 2023[143] - The Company entered into the September 2024 Honeywell Agreement for $14.2 million in cash, acquiring assets related to military display generators and flight control computers[337] - The exclusive licensing from Honeywell enhances the Company's offerings in air transport, military, and business aviation markets[338] Backlog and Contracts - Backlog at September 30, 2024 was $89.2 million, including $74.3 million from a recent acquisition, with 65% expected to be recognized as revenue over the next 12 months and 98% over the next 24 months[141] - Company secured a multi-million dollar production contract for 19'' Multifunction Display with Integrated Mission Computer in August 2024[142] - The company's backlog at September 30, 2023 was $13.5 million, significantly lower than the $89.2 million backlog at September 30, 2024[141] Market Risk and Interest Rates - A hypothetical 1% increase in variable interest rates would affect interest expense by approximately $0.3 million based on $28.0 million of variable rate debt as of September 30, 2024[46] - The company's exposure to market risk primarily relates to changes in interest rates, particularly from its revolving credit facility[46] - The company's cash equivalents consist of funds invested in money market funds with variable interest rates, and a 1% increase in rates would not materially impact operations[47] Inventory and Suppliers - Inventory write-downs are recorded when the net realizable value is below cost or future demand is lower than current inventory levels[44] - Four suppliers accounted for 63.1% of total inventory purchases in 2024, up from 49.0% in 2023[79] - The company's manufacturing relies on four key suppliers: Honeywell, FilConn, APCT Inc, and Brandywine Precision Inc, which accounted for most of the company's inventory-related purchases in fiscal year 2024[123] Revenue Recognition and Accounting Policies - Revenue recognition for EDC contracts is measured over time using an input measure, such as costs incurred to date relative to total estimated costs at completion[37] - The company's accounting policies require significant judgment and estimates due to inherent uncertainty or complexity[30] - The company uses the relief from royalty method to estimate the fair value of acquired license agreements, considering future expected revenues, royalty rates, and discount rates[59] Intangible Assets and Goodwill - The fair value of acquired license agreements in the September 2024 Honeywell Agreement was estimated at $2,300,000[58] - The company's identifiable intangible assets primarily consist of license agreements, customer relationships, and backlog, recognized at fair value in business combinations[100] - The company's goodwill impairment test is performed annually or in interim periods if certain changes indicate potential impairment, with factors including macroeconomic conditions and financial performance[104] Business Strategy and Operations - The company plans to continue investing in capital equipment to support engineering development efforts and operations[22] - The company operates in one business segment, focusing on flight guidance and cockpit display systems for OEMs and retrofit applications[45] - The company's multi-channel sales strategy targets various aviation sectors, including passenger and cargo aircraft operators, general aviation, MRO dealer networks, and the Department of Defense[119] - Potential cost synergies are expected from better utilization of the Company's engineering team and operational capacity[338] Facilities and Expansion - The company is expanding its Exton facility by 40,000 square feet at an expected cost of $6 million to support commercial growth and recent transactions with Honeywell[118] - Company operates a 45,000 square foot design, manufacturing, and office facility in Exton, Pennsylvania[155] Patents and Employees - Company held over 120 U.S. and international patents as of September 30, 2024[154] - 27% of full-time employees were in engineering-related roles as of September 30, 2024[154] - Company employed 133 full-time employees as of September 30, 2024, up from 98 in September 2023[137] Cybersecurity - The Company has not identified material risks from known cybersecurity threats affecting its operations or financial condition[321] Stock and Market Value - The aggregate market value of common stock held by non-affiliates was $112.2 million as of March 31, 2024[69] Product and Technology - ThrustSense® Autothrottle system selected by US Army for C-12 (B200) aircraft, with deliveries starting in September 2024[142]

Innovative Solutions and Support, Inc. (NASDAQ:ISSC) Q4 2024 Earnings Conference Call December 19, 2024 5:00 PM ET Company Participants Paul Bartolai - IR Shahram Askarpour - CEO Jeff DiGiovanni - CFO Conference Call Participants Andrew Rem - Odinson Partners Doug Ruth - Lenox Financial Services Gowshi Sri - Singular Research Operator Good evening. And welcome to the Innovative Solutions & Support's Fourth Quarter Fiscal 2024 Financial Results Conference Call. All participants will be in listen-only mode [O ...

Exhibit 99.1 INNOVATIVE SOLUTIONS & SUPPORT REPORTS FOURTH QUARTER AND FULL-YEAR 2024 RESULTS Exton, PA, December 19, 2024 – Innovative Solutions & Support, Inc. (Nasdaq: ISSC) ("IS&S" or the "Company"), a leading provider of advanced avionic solutions for commercial, business aviation and military markets, today reported financial results for the three- and twelve-month periods ended September 30, 2024. FOURTH QUARTER 2024 HIGHLIGHTS (all comparisons versus the prior year period unless otherwise noted) · N ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-41503 INNOVATIVE SOLUTIONS AND SUPPORT, INC. (Exact name of registrant as specified in its charter) PENNSYLVANIA 23-2507402 ( ...

Exhibit 99.1 INNOVATIVE SOLUTIONS & SUPPORT REPORTS THIRD QUARTER 2024 RESULTS Exton, PA, August 9, 2024 – Innovative Solutions & Support, Inc. (Nasdaq: ISSC) ("IS&S" or the "Company"), a company specializing in the engineering, manufacturing, and supply of advanced avionic solutions, today reported financial results for the three and nine months ended June 30, 2024. Investors are encouraged to read the Company's quarterly report on Form 10-Q when it is filed with the Securities and Exchange Commission (the ...

Innovative Solutions and Support, Inc. (NASDAQ:ISSC) Q3 2024 Earnings Conference Call August 9, 2024 9:00 AM ET Company Participants Paul Bartolai - Partner at Vallum Advisors Shahram Askarpour - Chief Executive Officer Jeff DiGiovanni - Chief Financial Officer Conference Call Participants Sergey Golunov - Freedom Broker Doug Ruth - Lenox Financial Services Andrew Rem - Odinson Partners Gowshihan Sriharan - Singular Research Operator Good day and welcome to the Innovative Solutions & Supports Third Quarter ...

Innovative Solutions and Support, Inc. (NASDAQ:ISSC) Q2 2024 Earnings Conference Call May 13, 2024 10:00 AM ET Company Participants Shahram Askarpour - Chief Executive Officer Jeff DiGiovanni - Chief Financial Officer Conference Call Participants Doug Ruth - Lenox Financial Services Operator Hello, and welcome to the Innovative Solutions & Support Second Quarter Fiscal 2024 Financial Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to hand t ...

Innovative Solutions and Support, Inc. (NASDAQ:ISSC) Q1 2024 Earnings Conference Call February 15, 2024 10:00 AM ET Company Participants Shahram Askarpour - CEO Rell Winand - CFO Conference Call Participants Theodore O'Neill - Litchfield Hills Research Andrew Rem - Odinson Partners Doug Ruth - Lenox Financial Services Operator Good day, and welcome to the Innovative Solutions & Support First Quarter Fiscal 2024 Financial Results Conference Call. All participants will be in listen only mode. [Operator Instru ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [For the transition period from to ] Commission File No. 001-41503 INNOVATIVE SOLUTIONS AND SUPPORT, INC. (Exact name of registrant as specified in its charter) PENNSYLVANIA 23-25 ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File No. 001-41503 INNOVATIVE SOLUTIONS AND SUPPORT, INC. (Exact name of registrant as specified in its charter) Pennsylvania 23-2507402 (S ...