Superconductor Technologies Inc. (STI) (Nasdaq:SCON) reported
financial results for the quarter ended March 31, 2018.
Jeff Quiram, STI’s president and CEO, stated, “In the first
quarter of 2018, as previously announced, we expanded our
Conductus® wire product development efforts related to next
generation electric machines (NGEMs) with the US Department of
Energy (DOE) and widened our NGEM scope to multiple applications.
We are now implementing a 2018 plan focused on producing wire
optimized to operate at low temperatures in the presence of a
magnetic field, the characteristics necessary for success in NGEM
applications. Our product improvements in late 2017 and planned
development in 2018 align our roadmap with market demand as our
customers seek to secure wire supply for future projects.
“Regarding our NGEM project with the DOE, all of our partners in
the program, TECO Westinghouse Motor Company, Massachusetts
Institute of Technology, and the University of North Texas,
are actively engaged as we integrate our efforts to complete the
program objectives as outlined in the statement of work. We will be
providing an annual review on milestone progress to the DOE in
July.”
In April, STI participated in the International Energy Agency
(IEA) and The Institute of Electrical and Electronics Engineers
(IEEE) conferences. The company engaged with its customers
and other industry leaders to review how STI can help them
capitalize on several accelerating energy megatrends: decentralized
renewable energy, high energy efficiency, and sustainable
transportation.
First Quarter HighlightsSTI’s first quarter
2018 net revenues were $246,000, compared to $1,000 in the first
quarter of 2017 and $305,000 in the fourth quarter of 2017. Net
loss for the first quarter 2018 was $2.2 million, or a loss of
$0.20 per basic and diluted share, compared to a net loss of $2.6
million, or a loss of $0.26 per basic and diluted share, in the
first quarter of 2017, and a net loss of $1.9 million, or a loss of
$0.17 per basic and diluted share in the fourth quarter of
2017.
On March 7, 2018, STI raised approximately $1.7 million in net
proceeds from a registered direct offering. As of March 31, 2018,
STI had $2.9 million in cash and cash equivalents.
Investor Conference CallSTI will host a
conference call and simultaneous webcast today, May 10th, at 11:00
a.m. Eastern Time / 8:00 a.m. Pacific Time to discuss its results.
To listen to the call live, please dial 1-800-263-0877 at least 10
minutes before the start of the conference. International
participants may dial 1-323-794-2094. The conference ID is
5629713. The call will be webcast and can be accessed from
the “Investor Relations” section of the company’s website. A
telephone replay will be available until midnight ET on May 14th by
dialing 1-844-512-2921 or 1-412-317-6671, and entering pass code
5629713. A replay will also be available at the web address
above.
About IEAThe IEA works to ensure reliable,
affordable and clean energy for its 30 member countries and beyond.
Its mission is guided by four main areas of focus: energy security,
economic development, environmental awareness and engagement
worldwide. For more information about IEA’s efforts on HTS, please
visit http://www.iea.org/tcp/end-use-electricity/hts/.
About IEEEIEEE and its members inspire a global
community to innovate for a better tomorrow through its more than
423,000 members in over 160 countries, and its highly cited
publications, conferences, technology standards, and professional
and educational activities. IEEE is the trusted “voice” for
engineering, computing, and technology information around the
globe. For more information on IEEE, please visit
https://www.ieee.org/.
About Superconductor Technologies Inc.
(STI)Superconductor Technologies Inc. is a global leader
in superconducting innovation. Its Conductus® superconducting wire
platform offers high performance, cost-effective and scalable
superconducting wire. With 100 times the current carrying capacity
of conventional copper and aluminum, superconducting wire offers
zero resistance with extreme high current density. This provides a
significant benefit for electric power transmission and also
enables much smaller or more powerful magnets for motors,
generators, energy storage and medical equipment. Since 1987, STI
has led innovation in HTS materials, developing more than 100
patents as well as proprietary trade secrets and manufacturing
expertise. For more than 20 years STI utilized its unique HTS
manufacturing process for solutions to maximize capacity
utilization and coverage for Tier 1 telecommunications operators.
Headquartered in Austin, TX, Superconductor Technologies Inc.'s
common stock is listed on the NASDAQ Capital Market under the
ticker symbol “SCON.” For more information about STI, please visit
http://www.suptech.com.
Safe Harbor
Statement Statements in this press release
regarding our business that are not historical facts are
"forward-looking statements" that involve risks and
uncertainties. Forward-looking statements are not guarantees
of future performance and are inherently subject to uncertainties
and other factors, which could cause actual results to differ
materially from the forward-looking statements. These factors and
uncertainties include, but are not limited to: our limited cash and
a history of losses; our need to materially grow our revenues from
commercial operations and/or to raise additional capital (which
financing may not be available on acceptable terms or at all) in
the very near future, before cash reserves are depleted (which
reserves are expected to be sufficient into the third quarter of
2018), to implement our current business plan and maintain our
viability; the performance and use of our equipment to produce wire
in accordance with our timetable; overcoming technical challenges
in attaining milestones to develop and manufacture commercial
lengths of our HTS wire; the possibility of delays in customer
evaluation and acceptance of our HTS wire; the limited number of
potential customers and customer pressures on the selling prices of
our products; the limited number of suppliers for some of our
components and our HTS wire; there being no significant backlog
from quarter to quarter; our market being characterized by rapidly
advancing technology; the impact of competitive products,
technologies and pricing; manufacturing capacity constraints and
difficulties; the impact of any financing activity on the level of
our stock price; the dilutive impact of any issuances of securities
to raise capital; the steps required to maintain the listing of our
common stock with a U.S. national securities exchange and the
impact on the liquidity and trading price of our common stock if we
fail to maintain such listing; the cost and uncertainty from
compliance with environmental regulations; and local, regional, and
national and international economic conditions and events and the
impact they may have on us and our customers.
Forward-looking statements can be affected by many other
factors, including, those described in the "Business" and
"Management's Discussion and Analysis of Financial Condition and
Results of Operations" sections of STI's Annual Report on Form 10-K
for the year ended December 31, 2017 and in STI's other public
filings. These documents are available online at STI's website,
www.suptech.com, or through the SEC's website, www.sec.gov.
Forward-looking statements are based on information presently
available to senior management, and STI has not assumed any duty to
update any forward-looking statements.
Investor Relations ContactMoriah Shilton or
Kirsten Chapman LHA
+1-415-433-3777
invest@suptech.com
– Tables to Follow –
SUPERCONDUCTOR TECHNOLOGIES
INC.CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS(Unaudited)
|
|
Three Months Ended |
|
|
March 31, 2018 |
|
April 1, 2017 |
|
|
|
|
|
Commercial product
revenues |
|
$ |
- |
|
|
$ |
1,000 |
|
Government contract
revenues |
|
|
246,000 |
|
|
|
- |
|
Total revenues |
|
|
246,000 |
|
|
|
1,000 |
|
|
|
|
|
|
Costs and
expenses: |
|
|
|
|
Cost of
commercial product revenues |
|
|
639,000 |
|
|
|
862,000 |
|
Cost of
government contract revenues |
|
|
183,000 |
|
|
|
- |
|
Research and
development |
|
|
577,000 |
|
|
|
650,000 |
|
Selling, general
and administrative |
|
|
1,041,000 |
|
|
|
1,120,000 |
|
|
|
|
|
|
Total costs and expenses |
|
|
2,440,000 |
|
|
|
2,632,000 |
|
|
|
|
|
|
Loss from
operations |
|
|
(2,194,000 |
) |
|
|
(2,631,000 |
) |
|
|
|
|
|
Other Income and
Expense: |
|
|
|
|
Adjustments to
fair value of warrant derivatives |
|
|
33,000 |
|
|
|
(3,000 |
) |
Adjustment to
warrant exercise price |
|
|
(24,000 |
) |
|
|
- |
|
Other
income |
|
|
7,000 |
|
|
|
5,000 |
|
|
|
|
|
|
Net loss |
|
$ |
(2,178,000 |
) |
|
$ |
(2,629,000 |
) |
|
|
|
|
|
Basic and diluted net
loss per common share |
|
$ |
(0.20 |
) |
|
$ |
(0.26 |
) |
|
|
|
|
|
Basic and diluted
weighted average number of common |
|
|
|
|
shares
outstanding |
|
|
11,021,261 |
|
|
|
9,967,932 |
|
SUPERCONDUCTOR
TECHNOLOGIES INC. |
|
CONDENSED CONSOLIDATED BALANCE
SHEETS |
|
|
|
|
March 31, |
|
December 31, |
|
|
2018 |
|
|
|
2017 |
|
|
(Unaudited) |
|
(See Note) |
ASSETS |
|
|
|
|
|
|
|
Current
Assets: |
|
|
|
Cash and cash
equivalents |
$ |
2,919,000 |
|
|
$ |
3,056,000 |
|
Accounts
receivable, net |
|
181,000 |
|
|
|
151,000 |
|
Inventories,
net |
|
169,000 |
|
|
|
102,000 |
|
Prepaid expenses
and other current assets |
|
16,000 |
|
|
|
82,000 |
|
Total Current Assets |
|
3,285,000 |
|
|
|
3,392,000 |
|
|
|
|
|
Property and
equipment, net of accumulated depreciation of |
|
|
|
$11,511,000 and
$11,200,000, respectively |
|
1,486,000 |
|
|
|
1,793,000 |
|
Patents,
licenses and purchased technology, net of accumulated
amortization |
|
|
|
of
$994,000 and $984,000, respectively |
|
733,000 |
|
|
|
742,000 |
|
Other
assets |
|
69,000 |
|
|
|
69,000 |
|
Total Assets |
$ |
5,573,000 |
|
|
$ |
5,996,000 |
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
Current
Liabilities: |
|
|
|
Accounts
payable |
$ |
424,000 |
|
|
$ |
349,000 |
|
Accrued
expenses |
|
422,000 |
|
|
|
481,000 |
|
Total Current Liabilities |
|
846,000 |
|
|
|
830,000 |
|
Other long term
liabilities |
|
76,000 |
|
|
|
54,000 |
|
Total Liabilities |
|
922,000 |
|
|
|
884,000 |
|
|
|
|
|
Commitments and
Contingencies (Notes 5 and 6) |
|
|
|
|
|
|
|
Stockholders’
Equity: |
|
|
|
Preferred stock,
$.001 par value, 2,000,000 shares authorized, |
|
|
|
328,925
and 328,925 shares issued and outstanding, respectively |
|
- |
|
|
|
- |
|
Common stock,
$.001 par value, 250,000,000 shares authorized, |
|
|
|
11,936,594 and 10,746,594 shares issued and outstanding,
respectively |
|
12,000 |
|
|
|
11,000 |
|
Capital in
excess of par value |
|
318,430,000 |
|
|
|
316,714,000 |
|
Accumulated
deficit |
|
(313,791,000 |
) |
|
|
(311,613,000 |
) |
Total Stockholders' Equity |
|
4,651,000 |
|
|
|
5,112,000 |
|
Total Liabilities and Stockholders' Equity |
$ |
5,573,000 |
|
|
$ |
5,996,000 |
|
Note – December 31, 2017 balances were derived
from audited financial statements.
SUPERCONDUCTOR TECHNOLOGIES INC. |
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
(Unaudited) |
|
Three Months Ended |
|
March 31, 2018 |
|
April 1, 2017 |
|
|
|
|
|
|
CASH
FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
Net
loss |
$ |
(2,178,000 |
) |
|
$ |
(2,629,000 |
) |
|
Adjustments to reconcile net loss to net cash used in |
|
|
|
|
operating activities: |
|
|
|
|
Depreciation and amortization |
|
323,000 |
|
|
|
568,000 |
|
|
Stock-based compensation expense |
|
17,000 |
|
|
|
103,000 |
|
|
Adjustments to fair value of warrant derivatives |
|
(33,000 |
) |
|
|
3,000 |
|
|
Adjustment to warrant exercise price |
|
24,000 |
|
|
|
- |
|
|
Changes in assets and liabilities: |
|
|
|
|
Accounts receivable |
|
(30,000 |
) |
|
|
9,000 |
|
|
Inventories |
|
(67,000 |
) |
|
|
15,000 |
|
|
Prepaid expenses and other current assets |
|
68,000 |
|
|
|
90,000 |
|
|
Patents and licenses |
|
(1,000 |
) |
|
|
(41,000 |
) |
|
Other assets |
|
- |
|
|
|
27,000 |
|
|
Accounts payable, accrued expenses and other current
liabilities |
|
45,000 |
|
|
|
(183,000 |
) |
|
Net cash used in operating activities |
|
(1,832,000 |
) |
|
|
(2,038,000 |
) |
|
|
|
|
|
|
CASH
FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
Purchases of property and equipment |
|
(5,000 |
) |
|
|
- |
|
|
Net proceeds from the sale of property and equipment |
|
- |
|
|
|
- |
|
|
Net cash used in investing activities |
|
(5,000 |
) |
|
|
- |
|
|
|
|
|
|
|
CASH
FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
Net proceeds from the sale of common stock |
|
1,700,000 |
|
|
|
- |
|
|
Net proceeds from the exercise of outstanding warrants |
|
- |
|
|
|
- |
|
|
Net cash provided by financing activities |
|
1,700,000 |
|
|
|
- |
|
|
|
|
|
|
|
Net
decrease in cash and cash equivalents |
|
(137,000 |
) |
|
|
(2,038,000 |
) |
|
Cash and
cash equivalents at beginning of period |
|
3,056,000 |
|
|
|
10,452,000 |
|
|
Cash and
cash equivalents at end of period |
$ |
2,919,000 |
|
|
$ |
8,414,000 |
|
|
|
|
|
|
|
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