UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
[x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended July 31, 1996
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Commission file number 0-9146
UNIQUE MOBILITY, INC.
(Exact name of registrant as specified in its charter)
Colorado 84-0579156
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
425 Corporate Circle Golden, Colorado 80401
(Address of principal executive offices) (zip code)
(303) 278-2002
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes X . No .
The number of shares outstanding (including shares held by affiliates) of the
registrant's common stock, par value $0.01 per share at September 11, 1996 was
11,243,092.
<PAGE>
PART I - FINANCIAL INFORMATION
UNIQUE MOBILITY, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
July 31, October 31,
Assets 1996 1995
(unaudited)
Current assets
Cash and cash equivalents $ 1,974,492 1,796,392
Certificates of deposit - 319,107
Accounts receivable 547,325 337,849
Costs and estimated earnings in excess of
billings on uncompleted contracts 165,911 262,414
Inventories (note 3) 426,905 404,701
Prepaid expenses 76,507 35,397
Other current assets 82,080 70,203
Total current assets 3,273,220 3,226,063
Property and equipment, at cost:
Land 335,500 335,500
Building 1,364,500 1,364,500
Molds 102,113 102,113
Transportation equipment 258,675 251,175
Machinery and equipment 1,859,138 1,763,818
3,919,926 3,817,106
Less accumulated depreciation (1,521,013) (1,275,530)
Net property and equipment 2,398,913 2,541,576
Investment in Taiwan joint venture 1,402,181 1,432,735
Patent and trademark costs, net of accumulated
amortization of $36,757 and $25,491 515,174 450,394
Other assets 8,873 27,831
$ 7,598,361 7,678,599
(Continued)
<PAGE>
UNIQUE MOBILITY, INC. AND SUBSIDIARIES
Consolidated Balance Sheets, Continued
July 31, October 31,
Liabilities and Stockholders' Equity 1996 1995
(unaudited)
Current liabilities:
Accounts payable $ 225,481 83,859
Other current liabilities (note 4) 414,530 464,186
Note payable to Taiwan joint venture participant 1,403,493 1,403,493
Current portion of long-term debt 72,183 81,525
Total current liabilities 2,115,687 2,033,063
Long-term debt, less current portion 758,945 807,003
Total liabilities 2,874,632 2,840,066
Minority interest in consolidated subsidiary 390,039 389,065
Stockholders' equity (note 5):
Common stock, $.01 par value, 50,000,000 shares
authorized; 11,125,178 and 10,571,953 shares
issued 111,252 105,720
Additional paid-in capital 20,942,425 18,887,886
Accumulated deficit (16,592,135) (14,426,536)
4,461,542 4,567,070
Less cost of 39,341 and 37,341 shares of
treasury stock 127,852 117,602
Total stockholders' equity 4,333,690 4,449,468
Commitment (note 8)
$ 7,598,361 7,678,599
See accompanying notes to consolidated financial statements.
<PAGE>
UNIQUE MOBILITY, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(unaudited)
<TABLE>
Quarter Ended July 31, Nine Months Ended July 31,
<S> 1996 1995 1996 1995
<C> <C> <C> <C>
Revenue:
Contract services (note 7) $ 598,746 1,464,089 1,117,410 3,555,682
Product sales 177,249 165,730 456,142 634,151
775,995 1,629,819 1,573,552 4,189,833
Operating costs and expenses:
Costs of revenue 520,629 1,102,576 1,283,890 2,778,635
Research and development 405,106 140,393 1,152,197 959,603
General and administrative 251,090 267,252 896,776 778,954
Depreciation and amortization 94,857 89,774 278,225 255,016
Royalty 3,687 7,258 7,518 19,938
1,275,369 1,607,253 3,618,606 4,792,146
Operating earnings (loss) (499,374) 22,566 (2,045,054) (602,313)
Other income (expense):
Minority interest share of earnings of
consolidated subsidiary (17,146) (15,613) (51,482) (48,451)
Interest income 26,171 10,593 80,301 25,845
Interest expense (54,582) (24,139) (164,449) (66,971)
Equity in loss of Taiwan joint venture (9,212) (1,665) (30,553) (7,283)
Other 8,357 9,486 45,638 18,859
Net earnings (loss) $ (545,786) 1,228 (2,165,599) (680,314)
Net earnings (loss) per common share (note 6) $ (.05) - (.20) (.07)
Weighted average number of shares of common
stock outstanding (note 6) 11,081,455 10,013,125 10,860,679 9,955,653
See accompanying notes to consolidated financial statements.
</TABLE>
<PAGE>
UNIQUE MOBILITY, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(unaudited)
Nine Months Ended July 31,
1996 1995
Cash flows from operating activities:
Net loss $ (2,165,599) (680,314)
Adjustments to reconcile net loss to net cash used
by operating activities:
Depreciation and amortization 278,225 255,016
Minority interest share of earnings of
consolidated subsidiary, net of cash
distributions 974 (2,060)
Noncash compensation expense for common stock
issued for services 37,436 12,500
Equity in loss of Taiwan joint venture 30,554 2,244
Gain on sale of assets (37,623) (3,534)
Change in operating assets and liabilities:
Accounts receivable and costs and estimated
earnings in excess of billings on
uncompleted contracts (112,973) (209,334)
Inventories (22,204) 65,937
Prepaid expenses and other current assets (52,987) 4,216
Billings in excess of costs and estimated
earnings on uncompleted contracts - (137,247)
Accounts payable and other current liabilities 91,966 141,363
Other - 374
Net cash used by operating activities (1,952,231) (550,839)
Cash provided (used) by investing activities:
Acquisition of property and equipment (123,021) (433,374)
Increase in patent and trademark costs (76,046) (49,147)
Proceeds from sale of property and equipment 62,860 17,110
Proceeds from sale of certificates of deposit 319,107 419,107
Purchase of certificates of deposits - (319,107)
Net cash provided (used) by investing
activities $ 182,900 (365,411)
(Continued)
<PAGE>
UNIQUE MOBILITY, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(unaudited)
Nine Months Ended July 31,
1996 1995
Cash flows provided by financing activities:
Proceeds from borrowings $ - 212,337
Repayment of debt (57,400) (187,881)
Proceeds from sale of common stock, net 1,905,816 1,437,333
Issuance of common stock upon exercise of
employee options 81,984 15,565
Issuance of common stock under employee stock
purchase plan 17,031 2,526
Net cash provided by financing activities 1,947,431 1,479,880
Increase in cash and cash equivalents 178,100 563,630
Cash and cash equivalents at beginning of period 1,796,392 1,201,008
Cash and cash equivalents at end of period $ 1,974,49 1,764,638
Supplemental disclosures to the consolidated statements of cash flows:
Cash paid for interest was $60,865 and $66,971 for the nine months ended July
31, 1996 and 1995, respectively.
In accordance with the provisions of the Company's stock option plans, the
Company accepts as payment of the exercise price, shares of the Company's common
stock held by the option holder prior to the date of the option exercise. The
shares received are recorded at cost as treasury stock. During the nine months
ended July 31, 1996, the Company issued 13,666 shares of common stock with an
exercise price of $10,250 for which the Company received 2,000 shares of common
stock.
See accompanying notes to Consolidated Financial Statements.
<PAGE>
UNIQUE MOBILITY, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(unaudited)
(1) The accompanying financial statements are unaudited; however, in the
opinion of management, all adjustments which were solely of a normal
recurring nature, necessary to a fair statement of the results for the
interim period, have been made. The results for the interim period are not
necessarily indicative of results to be expected for the fiscal year.
(2) Certain fiscal 1995 amounts have been reclassified for comparative
purposes.
(3) Inventories are stated at the lower of cost or market. Cost is determined
by the first-in, first-out method and consists of materials, direct labor
and production overhead. Inventories consist of the following:
July 31, 1996 October 31, 1995
(unaudited)
Raw materials $ 283,071 247,225
Work in process 84,439 31,525
Finished products 59,395 125,951
$ 426,905 404,701
(4) The following table summarizes the composition of the Company's other
current liabilities:
July 31, 1996 October 31, 1995
(unaudited)
Accrued subcontractor expense $ - 174,781
Accrued interest 196,555 93,698
Accrued legal and accounting fees 39,217 48,611
Accrued payroll, consulting,
personal property and real
estate taxes 45,379 44,882
Unearned revenue 62,460 22,096
Other 70,919 80,118
$ 414,530 464,186
<PAGE>
UNIQUE MOBILITY, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements, Continued
(unaudited)
(5) The Company has reserved 4,104,000 shares of common stock for
key employees, consultants, and key suppliers under its
Incentive and Non-Qualified Option plans. Options became exercisable
as determined at the date of grant by the Board of Directors and
expire within ten years from the date of grant. The maximum
number of shares that may be granted to any eligible employee during
the term of the Plan is 500,000 shares. The options require
holders to abide by certain Company policies on the trading of the
Company's common stock.
The following table summarizes activity under the plans:
Shares Under Per Share
Option Exercise Price
Outstanding at October 31, 1994 1,914,533 $ .50 - 8.13
Granted 100,000 5.00
Exercised (64,786) .50 - 3.50
Forfeited (97,515) 3.50 - 6.88
Outstanding at October 31, 1995 1,852,232 .50 - 8.13
Granted 540,000 4.13 - 4.75
Exercised (70,572) .50 - 3.50
Forfeited (307,465) 3.50 - 8.13
Outstanding at July 31, 1996 2,014,195 .50 - 8.13
Exercisable at July 31, 1996 1,398,750
In February 1994, the Company's Board of Directors ratified a Stock Option
Plan for Non-Employee Directors pursuant to which Directors may elect to
receive options in lieu of cash compensation for their services as
directors. The Company has reserved 250,000 shares of common stock for
issuance pursuant to the exercise of options under the Plan. The options
vest ratably over a three-year period beginning one year from the date of
grant and are exercisable for ten years from the grant date. Option prices
are equal to the fair market value of common shares at the date of grant.
The following table summarizes activity under the plan:
Shares Under Per Share
Option Exercise Price
Outstanding at October 31, 1994 48,000 $ 5.38 - 6.25
Granted 61,333 5.00 - 5.13
Outstanding at October 31, 1995 109,333 5.00 - 6.25
Granted 32,000 4.38
Outstanding at July 31, 1996 141,333 4.38 - 6.25
Exercisable at July 31, 1996 47,111
<PAGE>
UNIQUE MOBILITY, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements, Continued
(unaudited)
In connection with the original issuance of certain subordinated
convertible term notes to Advent and Techno, the Company granted Advent and
Techno warrants to acquire 790,000 shares of the Company's common stock at
the lower of $2.40 per share or the market price of the common stock
averaged over the 30 trading days immediately preceding the date of
exercise. The warrants expire August 1997, and allow for a cashless
exercise of the warrants into common shares based on the spread between the
market price of the common stock on the date of exercise and the $2.40
exercise price. All of these warrants remain outstanding at July 31, 1996.
The Company has reserved 300,000 shares of common stock for issuance
pursuant to a warrant agreement with an investment banking company. The
warrants are exercisable at a price of $6.00 per share and expire in
January 1999. The warrants contain transfer restrictions and provisions for
the adjustment of the exercise price and the number and type of securities
issuable upon exercise based on the occurrence of certain events. All of
these warrants remain outstanding at July 31, 1996.
In connection with the 1995 common stock issuance, the placement agent was
issued warrants expiring July 1998, to acquire 150,000 shares of the
Company's common stock at $5.75 per share. All of these warrants remain
outstanding at July 31, 1996.
In connection with the first 1996 common stock issuance, the placement
agent was issued warrants expiring February 1999, to acquire 50,000 shares
of the Company's common stock at $4.75 per share. All of these warrants
remain outstanding at July 31, 1996.
In connection with the second 1996 common stock issuance, the investor was
issued warrants expiring May 1998, to acquire 38,100 shares of the
Company's common stock at $5.00 per share. All of these warrants remain
outstanding at July 31, 1996.
(6) Loss per common share amounts are based on the weighted average number of
common shares outstanding during the third quarter and first nine months of
each fiscal year presented. Outstanding common stock options and warrants
were not included in the computation because the effect of such inclusion
would be antidilutive. Fully diluted earning per share are considered
equivalent to primary earnings per share.
(7) The Company has historically derived significant revenue from contract
services from a few key customers. For the quarter and nine months ended
July 31, 1996, the Company derived revenue of $542,179 and $911,594
representing 91 percent and 84 percent of contract services revenue from
five customers, respectively. For the quarter and nine months ended July
31, 1995, the Company derived revenue of $1,328,542 and $3,311,293
representing 91 percent and 93 percent of contract services revenue from
four and five customers, respectively.
(8) The Company has entered into employment agreements with three of its
officers which expire December 31, 1996. The aggregate annual future
compensation under these agreements from July 31, 1996, through the
expiration date is $167,816.
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Except for historical information, the discussion in this report contains
forward-looking statements that involve risks and uncertainties. The Company
wishes to caution readers that the Company's actual results could differ
materially from those discussed in this report. The Company has filed a
Registration Statement on Form S-3 with the Securities and Exchange Commission
which contains additional information concerning important factors that could
cause the Company's actual results to differ materially from the discussion in
this report.
Financial Condition
During the third quarter the Company continued to invest in manufacturing
engineering activities directed toward the commercialization of its proprietary
products in existing and developing markets for low voltage (24v to 48v)
applications. Principal among these activities are the development of
manufacturing processes for high efficiency motors for application in Invacare
Corporation's family of motorized wheelchair products; production engineering of
the electric motor scooter power system for Kwang Yang Motor Co., Ltd.(KYMCO);
and the development of a fully functional purpose built prototype electric
vehicle with Pininfarina. As a result of these activities, which were primarily
internally funded, research and development expense rose over three-fold to
$405,106 during the third quarter from the comparable prior year expenditure of
$140,393.
Net loss for the third quarter was $545,786 or $0.05 per share compared to net
earnings of $1,228 for the comparable quarter last year. Operations for the
first nine months of fiscal 1996 resulted in a net loss of $2,165,599 or $0.20
per share compared to a net loss of $680,314 or $0.07 per share for the
comparable prior year period.
Operations for the quarter ended July 31, 1996 were financed through the sale of
156,300 shares of common stock at the then prevailing market price pursuant to
Regulation S and from existing cash resources. Net proceeds from the
offering amounted to $598,197. See also "Liquidity and Capital
Resources" below.
The Company intends to continue to invest similar amounts of cash during the
remainder of fiscal 1996 on the commercialization of its proprietary technology,
including the launch of expanded manufacturing operations at its Golden,
Colorado facility. The Company, however, does not currently possess the
financial resources to fully fund these activities. See "Liquidity and Capital
Resources" below.
Cash balances at July 31, 1996, was $1,974,492 compared to $2,115,499 at the end
of fiscal 1995. Operating losses throughout fiscal 1996 have been funded
primarily from cash raised from the sale of the Company's common stock.
Accounts receivable rose $209,476 to $547,325 at July 31, 1996, and costs and
estimated earnings in excess of billings on uncompleted contracts declined
$96,503 from the fiscal 1995 year end level due to progress billings under
certain development contracts during the period.
Inventories rose $22,204 during the first nine months of fiscal 1996, reflecting
higher levels of raw material and work in process inventories which were offset,
in part, by lower levels of finished goods inventory.
Prepaid expenses rose to $76,507 at July 31, 1996, compared to $35,397 at the
beginning of the fiscal year due to the prepayment of annual premiums on the
Company's insurance coverages which are amortized ratably over the fiscal year.
The Company invested $123,021 for the acquisition of machinery and equipment and
$76,046 for the prosecution of patent and trademark applications covering its
proprietary technologies during the first nine months of fiscal 1996. Management
expects that the level of capital expenditures for machinery and equipment will
rise substantially during the fourth quarter of fiscal 1996 continuing through
the first half of fiscal 1997 coincident with the Company's plan to establish an
expanded manufacturing capability at its Golden, Colorado facility.
Accounts payable rose to $225,481 at July 31, 1996, from $83,859 at October 31,
1995, reflecting higher levels of purchased parts for raw material and work in
process inventories.
Other current liabilities declined $49,656 to $414,530 July 31, 1996, primarily
due to the payment of subcontractor costs during the period which was partially
offset by increases in accrued interest on the note payable to KYMCO financing
the Company's investment in Taiwan UQM Electric Co., Ltd., and higher levels of
deposits from customers for the purchase of UQM products.
Long-term debt declined $48,058 during the nine months ended July 31, 1996, to
$758,945 due to scheduled principal payments on the Company's mortgage debt for
its Golden, Colorado facility and scheduled collections on a lease contract held
by UQM Leasing, Inc.
Common stock and additional paid-in capital increased to $111,252 and
$20,942,425 at July 31, 1996, respectively, compared to $105,720 and
$18,887,886 at the end of fiscal 1995, respectively. The increase is
attributable to the sale of common stock to Invacare Corporation in the first
quarter; the sale of common stock to overseas institutional investors in various
offerings under Regulation S; and the purchase of common stock upon the exercise
of stock options by the Company's employees and consultants.
Results of Operations
Operations for the third quarter of fiscal 1996 resulted in lower levels of
operating losses compared to the previous two fiscal 1996 quarters. The lower
level of operating losses is attributable to higher levels of contract services
revenue during the third quarter. Operations for the fiscal 1996 third quarter
resulted in a net loss of $545,786 or $0.05 per share on total revenue of
$775,995 compared to net earnings of $1,228 on total revenue of $1,629,819 for
the comparable prior year quarter. Operations for the nine months ended July 31,
1996, resulted in a net loss of $2,165,599 or $0.20 per share on total revenue
of $1,573,552 compared to a net loss of $680,314 or $0.07 per share on total
revenue of $4,189,833 for the comparable prior year period.
Contract services revenue for the third quarter and nine months ended July 31,
1996, declined $865,343 or 59 percent and $2,438,272 or 69 percent,
respectively. The decrease is attributable to a reduction in the scope of the
Company's contract with the U.S. Department of Energy (DOE) and Ford Motor
Company and the reassignment of the Company's personnel to internally-funded
product launch activities during fiscal 1996.
Product sales for the third quarter and first nine months of fiscal 1996 rose
nominally to $177,249 and declined $178,009 or 28 percent, respectively,
reflecting lower sales levels of high voltage drive systems.
Gross profit margins for the third quarter improved to 33 percent while gross
profit margins for the nine months ended July 31, 1996 declined to 18 percent
compared to 32 percent and 34 percent for the comparable prior year periods.
Gross profit margins for the nine months ended July 31, 1996, were generally
lower than the comparable prior year period due to higher material costs on
purchased parts used in the Company's products and the write down of certain raw
material components costs to current market values during the fiscal 1996 first
quarter.
Research and development expenditures rose to $405,106 during the third quarter
and $1,152,197 for the nine months ended July 31, 1996, compared to $140,393 and
$959,603 during the comparable prior year periods, respectively. The fiscal 1996
expenditures were primarily attributable to internally funded engineering
activities associated with the launch of products for Invacare Corporation and
KYMCO and vehicle integration activities for the Ethos 3 EV demonstration
vehicle. Substantially all of the research and development expenditures during
the third quarter and nine months period of the prior fiscal year were
attributable to cost sharing investments under the contract with the DOE and
Ford Motor Company.
General and administrative costs declined to $251,090 for the third quarter
versus $267,252 for the comparable prior year quarter and rose to $896,776 for
the nine months ended July 31, 1996, versus $778,954 for the comparable prior
year period. The increase in the year to date expense is primarily
attributable to an arbitration award compensating a consultant for
unauthorized work performed on the Ford/DOE program for which the company
was unable to seek reimbursement under the contract.
Depreciation and amortization expense increased to $94,857 and $278,225 for the
quarter and nine months ended July 31, 1996, compared to $89,774 and $255,016
for the comparable prior year periods, reflecting generally higher levels of
depreciable assets and amortizable patents and trademark expenditures in fiscal
1996.
Interest income for the third quarter and first nine months of fiscal 1996 rose
from the comparable fiscal 1995 levels due to higher balances of cash available
for investment during the fiscal 1996 period.
Interest expense rose $54,582 and $164,449 for the quarter and nine months ended
July 31, 1996, compared to the prior year, reflecting interest accrual on the
Company's note payable to its Taiwan joint venture partner.
<PAGE>
Liquidity and Capital Resources
The Company's cash balances and liquidity were adequate to meet operating
requirements throughout the first nine months of fiscal 1996.
During the first quarter of fiscal 1996 the Company sold to Invacare Corporation
129,032 shares of the Company's common stock at a price of $3.88 per share. Net
proceeds to the Company were $500,000. Contingent upon the achievement of
certain conditions, Invacare has agreed to make an additional investment in the
Company through the purchase of common stock at the then prevailing market
price. The additional investment, if completed, will be in the approximate
amount of 50 percent of the mutually agreed capital costs for the manufacture of
products to be sold to Invacare. The proceeds from the additional investment by
Invacare will be restricted to such mutually agreed costs. The Company believes
that the second investment by Invacare will be completed during the fourth
quarter at which time the Company intends to dedicate approximately $1 million
of its existing cash resources to meet its obligations with respect to the
Invacare product launch.
During the third quarter of fiscal 1996 the Company completed the sale of
156,300 of its common stock with an institutional fund and a private investor in
Europe pursuant to an offering under Regulation S of the Securities and Exchange
Act. Of the shares placed, 114,300 shares were at the market price on the date
of purchase acceptance or $4.38 per common share and included two year warrants
to acquire an additional 38,100 shares at an exercise price of $5.00 per
share. The remaining 42,000 shares were placed at the market price for the
five trading days preceding the date of purchase acceptance or $3.60 per share.
Net proceeds to the Company after deducting the expenses of the sales
amounted to $598,197.
During fiscal 1995, the Company, KYMCO and Turn-Luckily Technology Co., Ltd.
(TLT) entered into a Waiver and Option Agreement whereby KYMCO agreed to fund
Unique's capital call obligations pursuant to the Joint Venture Agreement giving
Unique the right to purchase a 39 percent equity in Taiwan UQM Electric Co.,
Ltd. (Taiwan UQM). Pursuant to the Agreement, KYMCO contributed $1,403,493 to
Taiwan UQM and acquired ownership of the shares of Taiwan UQM issued in exchange
therefore. Further, the Agreement granted Unique the option to repurchase these
shares from KYMCO at any time prior to May 31, 1996, for $1,403,493 plus
interest at 10 percent per annum. The purchase of the shares by KYMCO has been
accounted for as a financing arrangement. Accordingly, for financial reporting
purposes the Company has recorded an investment in joint venture equal to 39
percent of the current net assets of Taiwan UQM and a note payable to Taiwan
joint venture participant equal to the amount payable to KYMCO under the Waiver
and Option Agreement excluding accrued interest thereon. On May 6, 1996, the
Company, KYMCO and TLT completed an amendment to the Waiver and Option
Agreement. Under the amendment, the Company's option to repurchase the shares
was extended from May 31, 1996, to October 21, 1996, and certain provisions
relating to the minimum number of shares subject to repurchase by the Company
were eliminated. The Company does not currently possess the financial resources
to meet its obligation under the amended Waiver and Option Agreement, although
the Company intends to secure capital to meet this obligation should such
capital be available on terms acceptable to the Company. In the event the
Company is unable to secure the capital necessary to meet its existing
obligation under the amended Waiver and Option Agreement, the Company may seek
an additional extension of time to preserve its ownership interest in Taiwan
UQM. However, there can be no assurance that such an extension can be obtained,
or if obtained that the Company will then possess the financial resources to
maintain its ownership interest in Taiwan UQM at 39 percent. Should the Company
not meet its obligation under the Joint Venture Agreement and the amended Waiver
and Option Agreement, Taiwan UQM would nevertheless be obligated to obtain a
royalty bearing license from the Company in order to gain manufacturing rights
to the Company's proprietary technologies.
The Company may require additional capital beyond that discussed above to
complete its long-term business plan. The Company hopes to meet future capital
requirements through the issuance of equity or debt securities or a combination
of both, although, there can be no assurance that such financing can be
arranged. In the event the Company is unwilling or unable to arrange such
financing, management would defer, abandon or modify implementation of the
Company's business plan. The Company plans to continue to pursue the
commercialization of its proprietary technologies directly, if financing can be
obtained, or indirectly by means of strategic alliances or licensing
arrangements with leading companies in the field, or a combination of both.
<PAGE>
PART II - OTHER INFORMATION
ITEM 6. Exhibits and Reports on Form 8-K
(a) Exhibits
None.
27 Financial Data Schedule
(b) Reports on Form 8-K
None.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Unique Mobility, Inc.
Registrant
Date: September 13, 1996 By:/s/ Donald A. French
Donald A. French
Treasurer and Controller
Accounting Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED BALANCE SHEETS OF UNIQUE MOBILITY, INC. AND CONSOLIDATED
SUBSIDIARIES AS OF JULY 31, 1996, AND THE CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED JULY 31, 1996, AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> OCT-31-1996
<PERIOD-END> JUL-31-1996
<CASH> 1,974,492
<SECURITIES> 0
<RECEIVABLES> 547,325
<ALLOWANCES> 0
<INVENTORY> 592,816
<CURRENT-ASSETS> 3,273,220
<PP&E> 3,919,926
<DEPRECIATION> 1,521,013
<TOTAL-ASSETS> 7,598,361
<CURRENT-LIABILITIES> 2,115,687
<BONDS> 758,945
0
0
<COMMON> 21,053,677
<OTHER-SE> (16,719,987)
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