For the fiscal year ended March 31, 2025, Tel-Instrument Electronics Corp. reported revenues of $9.3 million, a 6% increase from the prior fiscal year. The company experienced a significant decrease in gross margin to 22%, a 24 percentage point drop compared to the previous year. Operating expenses rose by $1.1 million (33%) due to the absence of client-funded engineering projects. This resulted in an operating loss of $2.3 million, a reversal from an operating income of $737K in the prior fiscal year. A tax loss carryforward reversal led to a net loss of $4.9 million for the fiscal year. The company experienced delays in expected shipments of CRAFT test sets and Navy ECP units, with CRAFT shipments commencing late in FY2026 and no Navy ECP units delivered. Despite these challenges, FY2026 revenues increased to $10.4 million, and the operating loss declined substantially. The current sales backlog stands at $11 million, with $3.5 million from Navy KIT production. Navy full-rate ECP KIT production is expected to start in July 2026, projected to increase annual revenues by $5 million. Strong sales of new CRAFT 708A test sets have a $2.6 million backlog and $3 million in the pipeline. The company completed a fundraising of $866,500 through preferred stock, with the CEO personally investing $166,500. Tel-Instrument plans to catch up on reporting and anticipates a new phase of growth and profitability.