{"url_path":"/sec/cik-0000096885/10-k/2026/item-3","section_key":"item-3","section_title":"Item 3 Legal Proceedings**","topic":"sec","document":{"doc_type":"10-K","doc_date":"2026-06-30","source_url":"https://www.sec.gov/Archives/edgar/data/96885/0001185185-26-002742-index.html","accession_number":"0001185185-26-002742","cik":"0000096885","ticker":null,"issuer_name":"TEL INSTRUMENT ELECTRONICS CORP","edgar_url":"https://www.sec.gov/Archives/edgar/data/96885/0001185185-26-002742-index.html","primary_entity_key":"0000096885","primary_entity_name":"TEL INSTRUMENT ELECTRONICS CORP"},"word_count":452,"has_tables":true,"body_markdown":"**Item\n3. Legal Proceedings**\n\n \n\nContingencies\nare recorded in the audited consolidated financial statements when it is probable that a liability will be incurred and the amount of\nthe loss is reasonably estimable, or otherwise disclosed, in accordance with Accounting Standards Codification 450, Contingencies (ASC\n450). Significant judgment is required in both the determination of probability and the determination as to whether a loss is reasonably\nestimable. In the event the Company determines that a loss is not probable, but is reasonably possible, and it becomes possible to develop\nwhat the Company believes to be a reasonable range of possible loss, then the Company will include disclosures related to such matter\nas appropriate and in compliance with ASC 450. To the extent there is a reasonable possibility that the losses could exceed the amounts\nalready accrued, the Company will, when applicable, adjust the accrual in the period the determination is made, disclose an estimate\nof the additional loss or range of loss or if the amount of such adjustment cannot be reasonably estimated, disclose that an estimate\ncannot be made.\n\n \n\nDuring\nthe fiscal year ended March 31, 2024, the Aeroflex litigation did not result in a favorable outcome for the Company, despite our belief\nthat we committed no wrongdoing. We have paid the $6.6 million judgment and interest in full and there are no outstanding obligations\nrelated to the Aeroflex litigation. The jury found no misappropriation of Aeroflex trade secrets but found that the Company tortiously\ninterfered with a prospective business opportunity and awarded damages. The jury also found that TIC tortiously interfered with Aeroflex’s\nnon-disclosure agreements with two former Aeroflex employees, and that the former Aeroflex employees breached their non-disclosure agreements\nwith Aeroflex. Upon appeal, a decision on the case was rendered and released on July 21, 2023, the Kansas Appeals Court rejected each\nof TIC’s appeal arguments. TIC paid the full judgement and interest in the amount of $6,559,233 on September 15, 2023, including\ninterest of $1,659,233.\n\n \n\nOther\nthan the above, there have been no actions, suits, proceedings, inquiries or investigation before or by any court, public board, government\nagency, self-regulatory organization or body pending or, to the knowledge of the executive officers of our company or any of our subsidiaries,\nthreatened against or affecting our company, our common stock, any of our subsidiaries or of our companies or our subsidiaries’\nofficers or directors in their capacities as such, in which an adverse decision could have a material adverse effect.\n\n \n\nAs\nof the date of this Annual Report on Form 10-K, except as set forth herein, management believes that there are no claims against TIC,\nwhich it believes will result in a material adverse effect on TIC’s business or financial condition."}