MIKROS SYSTEMS CORPORATION
3490 U.S. Route #1, Bldg. #5
Princeton, NJ 08540
(609) 987-1513
June 13, 1996
SECURITIES AND EXCHANGE COMMISSION
450 5th Street, NW
Judiciary Plaza
Washington, DC 20549
RE: MIKROS SYSTEMS CORPORATION/10K-A
Dear Sirs:
Pursuant to the Securities Exchange Act of 1934, as amended, Mikros Systems
Corporation, a Delaware corporation (the "Corporation"), hereby encloses
herewith amended pages for form 10K filed on May 17, 1996 for the fiscal year
ended December 31, 1995.
This filing is being effected by direct transmission to the Securities and
Exchange Commission's (the "Commission") EDGAR System.
If you have any questions or comments concerning this filing, kindly contact
the undersigned.
Very truly yours,
/s/ Joseph R. Benek
- --------------------
Joseph R. Benek
Vice President Finance & Treasurer
Enc.
<PAGE>
Item 6. Selected Financial Data (1)
- ------------------------------------
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
1995 1994 1993 1992 1991
------------------------------------------------------
<C> <C> <C> <C> <C>
INCOME STATEMENT
Total Revenue $3,379,897 $4,445,468 $2,909,202$2,899,810 $2,787,054
Net Income(Loss) (647,673) 151,635 447,140 116,636 114,899
Income (Loss) per
common share-Primary (.10) .01 .09 .02 .03
Fully Diluted (.10) .01 .09 .02 .02
Weighted average
number of common
shares outstanding-
Primary 7,285,441 7,135,441 4,371,011 4,357,108 3,975,546
Weighted average
number of common
shares outstanding-
Fulled Diluted 12,880,930 8,415,576 5,376,011 5,362,108 4,980,546
BALANCE SHEET
Current Assets 283,309 1,405,554 518,289 647,639 400,728
Current Liabilities 604,527 1,118,537 304,246 1,026,009 1,356,255
Total Assets 546,995 1,641,001 806,006 912,492 628,076
Long-Term Liabilities 342,869 287,692 419,873 500,526 2,500
Total liabilities 947,396 1,406,229 724,119 1,526,535 1,358,755
Shareholders' Equity
(Capital Deficiency) (480,851) 154,322 1,437 (688,843) (785,379)
<FN>
(1) The above data should be read in conjunction with the
financial statements of the Company included elsewhere
herein.
</TABLE>
<PAGE>
Item 12. Security Ownership of Certain Beneficial Owners and
Management
- -------------------------------------------------------------
Common Stock
- ------------
The following table sets forth certain information, as of May 17,
1996, with respect to holdings of the Company's Common Stock by (i)
each person known by the Company to be the beneficial owner of more
than 5% of the total number of shares of Common Stock outstanding as
of such date, (ii) each of the nominees (which includes all current
directors and Named Executives), and (iii) all current directors and
officers as a group.
AMOUNT AND NATURE
OF BENEFICIAL PERCENT
NAME OF BENEFICIAL OWNER OWNERSHIP(1) OF CLASS
- ------------------------ ----------------- --------
(i) Certain Beneficial Owners:
Transitions Two,
Limited Partnership
920 Hopmeadow Street
Simsbury, Connecticut 06070 2,137,775(2) 22.2
(ii) Nominees:
Joseph R. Burns 1,113,081(3) 14.4
William V. Goodwin 56,250(4) *
Thomas J. Meaney 1,934,500(5) 23.7
Wayne E. Meyer 1,133,750(6) 14.1
Frederick C. Tecce 835,000(7) 10.6
John B. Torkelsen 1,878,383(8) 22.0
(iii) All Current Directors and Officers
as a Group (eight persons) 6,482,119 66.8
- -------------------------------------------
* Less than 1%
(1) Except as otherwise indicated, all shares are beneficially
owned and the sole investment and voting power is held by the
persons named.
(2) Includes 250,000 shares issuable upon conversion of Convertible
Preferred Stock plus 1,750,275 shares issuable upon conversion
of Series B Stock.
(3) Includes 14,748 shares issuable upon conversion of Series B
Stock and 100,000 shares issuable upon the exercise of warrants.
(4) Includes 56,250 shares issuable upon the exercise of options.
(5) Includes 50,000 shares issuable upon conversion of Convertible
Preferred Stock plus 199,500 shares issuable upon conversion of
Series B Stock and 275,000 shares issuable on the exercise of
warrants.
(6) Includes 30,000 shares issuable upon conversion of Series B
Stock and 75,000 shares issuable upon the exercise of options
and 318,750 shares issuable upon the exercise of warrants.
(7) Includes 275,000 shares issuable upon the exercise of warrants.
<PAGE>
(8) Includes 130,000 shares held of record by Princeton Venture
Research, Inc., a corporation wholly owned by Mr. Torkelsen.
Also includes 202,500 shares issuable upon conversion of
Convertible Preferred Stock and 695,883 shares issuable upon
conversion of Series B Stock. The Series B Stock is held of
record by Princeton Venture Research, Inc.
<PAGE>
MIKROS SYSTEMS CORPORATION
STATEMENTS OF OPERATIONS
For the Year Ended December 31,
1995 1994 1993
------------ ---------- ----------
Revenues:
Equipment Sales $1,390,085 $1,397,000 $ 63,952
Contract Research and Development 1,989,812 3,048,468 2,845,250
------------ ---------- ----------
Total Revenues 3,379,897 4,445,468 2,909,202
------------ ---------- ----------
Cost of Sales:
Equipment Sales 1,079,873 1,041,195 22,914
Contract Research and Development 1,796,168 2,341,474 2,030,939
------------ ---------- ----------
Total Cost of Sales 2,876,041 3,382,669 2,053,853
------------ ---------- ----------
Gross Margin 503,856 1,062,799 855,349
------------ ---------- ----------
Expenses:
Research and Development 238,120 - -
General and Administrative 855,925 850,091 678,900
Interest 57,334 60,973 25,152
------------ ---------- ----------
Total Expenses 1,151,379 911,064 704,052
------------ ---------- ----------
Income (Loss) before Taxes
and Extraordinary Item (647,523) 151,735 151,297
Provision for Income Taxes 150 100 50
------------ ---------- ----------
Income (Loss) before
Extraordinary Item (647,673) 151,635 151,247
Extraordinary Item:
Gain from Debt Restructure - - 295,893
------------ ---------- ----------
Net Income (Loss) ($647,673) $151,635 $447,140
============ ========== ==========
Earnings per share:
Primary:
Net Income (Loss) Before
Extraordinary Item ($0.10) $0.01 $0.02
Extraordinary Item - - 0.07
----------- ---------- ----------
Net Income (Loss) per share ($0.10) $0.01 $0.09
=========== ========== ==========
Fully Diluted:
Net Income (Loss) Before
Extraordinary Item ($0.10) $0.01 $0.03
Extraordinary Item - - 0.06
----------- ---------- ----------
Net Income (Loss) per share ($0.10) $0.01 $0.09
============ ========== ==========
See Notes to Financial Statements
<PAGE>
EXHIBIT 11.0
COMPUTATION OF EARNINGS PER SHARE
Year Ended December 31,
1995 1994 1993
(000's Omitted)
--------- ---------- --------
Primary
Earnings(Loss)
Income (Loss) extraordinary items ($ 648) $ 152 $ 151
Deduct dividends on preferred shares 69 69 69
--------- --------- ---------
Income (Loss) applicable to common stock
before extraordinary items ( 717) 83 82
Extraordinary items - - 296
--------- --------- ---------
Income (Loss) applicable to common stock ($ 717) $ 83 $ 378
========= ========= =========
Shares
Weighted average number of common
shares outstanding 7,285,441 7,056,536 4,371,011
Add shares issuable from assumed
exercise of options and warrants - 78,905 -
--------- --------- ---------
7,285,441 7,135,441 4,371,011
========= ========= =========
Primary earnings per common share
Income (Loss) before extraordinary items ($ .10) $.01 $ .02
Extraordinary items - - .07
---------- ---------- ----------
Net income (Loss) ($ .10) $ .01 $ .09
========== ========== ==========
Assuming full dilution
Earnings
Income (Loss) before extraordinary items ($ 648) $ 152 $ 151
Extraordinary items - - 296
---------- ---------- ---------
Net income (Loss) ($ 648) $ 152 $ 447
========== ========== =========
Shares
Weighted average number of common
shares outstanding 7,285,441 7,135,441 4,371,011
Assuming conversion of preferred stock 4,399,989 1,005,000 1,005,000
Assuming exercise of options and warrants
reduced by the number of shares which
could have been purchased with the
proceeds from exercise of such options
and warrants 1,195,500 275,135 -
---------- ---------- ----------
Weighted average number of common
shares outstanding as adjusted 12,880,930 8,415,576 5,376,011
=========== ========== ==========
Earnings per common share assuming
full dilution
Income (Loss) before extraordinary items* ($.05)* $.02* $.03
Extraordinary items - - .06
---------- ---------- ---------
Net Income (Loss) ($.05)* $.02* $.09
========== ========== =========
* Earnings (loss) per share with conversion is anti-dilutive and
therefore is not used.
