Tel Instrument Shareholders:

We have delayed filing our Annual Report on Form 10-K for the fiscal year ended March 31, 2025, as we continue to work with our bank on the terms for extending our credit line. We are also working on a capital raise with corporate insiders and management to shore up our balance sheet and help finance the impending sharp growth in our business. Until the 10K is filed, TIC shares will trade on OTC Pink.

On a separate note, TIC has secured full-rate production approval from the Navy for the new CRAFT upgrade KITS (AN-USM-708A and AN/USM-719A). The Navy has issued the initial delivery order for 150 upgrade KITS with additional orders expected this year. This Navy contract is expected to increase revenues by about $5 million per year. We are also starting CRAFT 708A production in September. Finally, the SDR-OMNI and SDR-OMNI/MIL test sets are both gaining increasing market traction.

Quarterly revenues are expected to increase sharply once CRAFT 708A production and the Navy contract commence. This should result in solid profitability given the largely fixed nature of our cost structure.

We will provide additional updates when appropriate.

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