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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) February 26, 1999
Superconductor Technologies Inc.
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(Exact name of registrant as specified in its charter)
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<S> <C> <C>
Delaware 000-21074 77-0153076
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(State or other jurisdiction (Commission File Number) (IRS Employer
of incorporation) Identification No.)
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460 Ward Drive, Suite F, Santa Barbara, California 93111
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (805) 683-7646
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Not applicable
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(Former name or former address, if changed since last report)
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ITEM 5. Other Events
On February 26, 1999 the Company entered into an agreement with the holders
of all of the Company's outstanding preferred stock that, among other things,
provided for the exchange of all of the Company's Series A, Series A-1 and
Series B Preferred Stock (the "Old Securities") for shares of Series A-2, Series
A-3 and Series B-1 Preferred Stock (the "New Securities"), respectively. The New
Securities differ from the Old Securities in that they are not redeemable and
there are limits on conversions of the New Securities pending stockholder
approval of the removal of the conversion restrictions. The Company will account
for the New Securities on its balance sheet as Stockholders' Equity, whereas due
to their redeemable nature the Company had accounted for the Old Securities as a
separate caption titled "Redeemable Preferred Stock." The Company is providing
the following pro-forma balance sheet information to demonstrate the pro-forma
impact of the exchange on the Company's financial position as of December 31,
1998.
The Company is also providing a statement of operations for the period
ending December 31, 1998. The footnotes to the financial statements provided
have been omitted and will be filed with the Company's complete financial
statements as part of the Company's Annual Report on Form 10-K to be filed on
or before March 31, 1999.
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SUPERCONDUCTOR TECHNOLOGIES INC.
BALANCE SHEET
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<CAPTION>
DECEMBER 31,
ASSETS DECEMBER 31, DECEMBER 31, PRO FORMA 1998
1997 1998 ADJUSTMENTS(1) PRO FORMA
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(UNAUDITED)
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Current assets:
Cash and cash equivalents $ 1,438,000 $ 310,000 $ 310,000
Short-term investments 2,099,000 0 0
Accounts receivable 1,048,000 1,939,000 1,939,000
Inventory 677,000 2,719,000 2,719,000
Prepaid expenses and other current assets 146,000 173,000 173,000
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Total current assets 5,408,000 5,141,000 5,141,000
Property and equipment, net of accumulated depreciation
of $6,534,000 and $6,985,000, respectively 2,456,000 5,114,000 5,114,000
Patents and licenses, net of accumulated amortization
of $1,057,000 and $1,285,000, respectively 2,152,000 2,070,000 2,070,000
Other assets, net of accumulated 71,000 184,000 184,000
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Total assets $ 10,087,000 $ 12,509,000 $ 12,509,000
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,407,000 $ 2,396,000 $ 2,396,000
Accrued compensation 437,000 583,000 583,000
Current portion of long-term debt 64,000 813,000 813,000
Total current liabilities 1,908,000 3,792,000 3,792,000
Long-term debt 13,000 932,000 932,000
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Total liabilities 1,921,000 4,724,000 4,724,000
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Redeemable Preferred Stock, $.001 par value,
2,000,000 shares, authorized,
Series A 645,833 shares issued and outstanding,
Series A-1 125,000 shares Issued and outstanding,
Series B 500,000 shares issued and outstanding 0 8,982,000 (8,982,000) 0
Commitments and contingencies
Stockholders' equity:
Preferred Stock, $.001 par value, 2,000,000 shares
authorized, Series A-2 64,584 shares issued and
outstanding, Series A-3 12,500 shares issued and
outstanding, Series B-1 50,000 shares issued and
outstanding 8,982,000 8,982,000
Common Stock, $.001 par value, 30,000,000
shares authorized, 7,699,581 and 7,722,591 shares
issued and outstanding 8,000 8,000 8,000
Capital in excess of par value 35,211,000 35,010,000 35,010,000
Deficit accumulated during development stage (27,053,000) (36,215,000) (36,215,000)
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Total stockholders' equity 8,166,000 (1,197,000) 7,785,000
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Total liabilities and stockholders' equity $ 10,087,000 $ 12,509,000 $ 12,509,000
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(1) Pro forma adjustments reflect the exchange of redeemable preferred stock
assuming this transaction occurred on or prior to December 31, 1998.
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SUPERCONDUCTOR TECHNOLOGIES INC.
(A Development Stage Enterprise)
STATEMENT OF OPERATIONS
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DECEMBER 31, DECEMBER 31,
1997 1998
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Net Revenues:
Government contract revenues $ 8,104,000 $ 6,029,000
Commercial product revenues 175,000 1,954,000
Sub license royalties 38,000 0
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Total net revenues 8,317,000 7,983,000
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Costs and expenses:
Cost of commercial revenues 0 5,873,000
Contract research and development 6,218,000 4,693,000
Other research and development 1,809,000 1,161,000
Selling, general and administrative 4,076,000 5,435,000
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Total costs and expenses 12,103,000 17,162,000
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Loss from operations (3,786,000) (9,179,000)
Interest income 275,000 79,000
Interest expense (30,000) (62,000)
Other income (expense), net 0 0
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Net loss ($3,541,000) ($9,162,000)
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Basic and diluted loss per share ($ 0.46) ($ 1.22)
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Weighted average number of
shares outstanding 7,701,435 7,724,829
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
SUPERCONDUCTOR TECHNOLOGIES INC.
Dated: March 26, 1999 By: /s/ JAMES G. EVANS, JR.
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James G. Evans, Jr.
Chief Financial Officer
