MAXWELL TECHNOLOGIES, INC.

CONSOLIDATED BALANCE SHEET

(in thousands, except per share data)



	December 31, 2011
	As previously reported			Restatement Adjustments			Debt Classification Adjustments			Restated
ASSETS
Current assets:
Cash and cash equivalents	$	29,289		$	—		$	—		$	29,289
Trade and other accounts receivable, net of allowance for doubtful accounts of $450 at December 31, 2011	36,131			(8,158		)	—			27,973
Inventories	27,232			6,002			—			33,234
Prepaid expenses and other current assets	3,125			(34		)	61			3,152
Total current assets	95,777			(2,190		)	61			93,648
Property and equipment, net	28,541			—			—			28,541
Intangible assets, net	1,111			—			—			1,111
Goodwill	24,887			—			—			24,887
Pension asset	6,359			—			—			6,359
Other non-current assets	261			—			(61		)	200
Total assets	$	156,936		$	(2,190	)	$	—		$	154,746
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	36,103		$	(3	)	$	—		$	36,100
Accrued warranty	258			—			—			258
Accrued employee compensation	6,243			100			—			6,343
Deferred revenue	1,042			—			—			1,042
Short-term borrowings and current portion of long-term debt	5,431			—			—			5,431
Deferred tax liability	499			—			—			499
Total current liabilities	49,576			97			—			49,673
Deferred tax liability, long-term	933			—			—			933
Long-term debt, excluding current portion	68			—			—			68
Other long-term liabilities	3,028			—			—			3,028
Total liabilities	53,605			97			—			53,702
Commitments and contingencies (Note 12 and Note 14)
Stockholders’ equity:
Common stock, $0.10 par value per share, 40,000 shares authorized; 28,174 shares issued and outstanding at December 31, 2011	2,815			—			—			2,815
Additional paid-in capital	252,907			—			—			252,907
Accumulated deficit	(163,021		)	(2,287		)	—			(165,308		)
Accumulated other comprehensive income	10,630			—			—			10,630
Total stockholders’ equity	103,331			(2,287		)	—			101,044
Total liabilities and stockholders’ equity	$	156,936		$	(2,190	)	$	—		$	154,746

MAXWELL TECHNOLOGIES, INC.

CONSOLIDATED STATEMENT OF OPERATIONS

(in thousands, except per share data)



	Year Ended December 31, 2011
	As previously reported			Restatement Adjustments			Restated
Revenue	$	157,311		$	(10,135	)	$	147,176
Cost of revenue	95,254			(5,148		)	90,106
Gross profit	62,057			(4,987		)	57,070
Operating expenses:
Selling, general and administrative	37,944			(2,726		)	35,218
Research and development	22,330			26			22,356
Total operating expenses	60,274			(2,700		)	57,574
Income (loss) from operations	1,783			(2,287		)	(504		)
Interest expense, net	(109		)	—			(109		)
Amortization of debt discount and prepaid debt costs	(55		)	—			(55		)
Gain on embedded derivatives and warrants	1,086			—			1,086
Income (loss) from operations before income taxes	2,705			(2,287		)	418
Income tax provision	1,856			—			1,856
Net income (loss)	$	849		$	(2,287	)	$	(1,438	)
Net income (loss) per share:
Basic	$	0.03		$	(0.08	)	$	(0.05	)
Diluted	$	0.03		$	(0.08	)	$	(0.05	)
Weighted average common shares outstanding:
Basic	27,637			—			27,637
Diluted	28,161			—			27,637

MAXWELL TECHNOLOGIES, INC.

CONSOLIDATED STATEMENT OF CASH FLOWS

(in thousands)



	Year Ended December 31, 2011
	As previously reported			Restatement Adjustments			Restated
Operating activities:
Net income (loss)	$	849		$	(2,287	)	$	(1,438	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation	6,800			—			6,800
Amortization of intangible assets	559			—			559
Amortization of debt discount and prepaid debt costs	55			—			55
Gain on embedded derivatives and warrants	(1,086		)	—			(1,086		)
Pension cost	(109		)				(109		)
Stock based-compensation expense	2,582			—			2,582
Loss on impairment of property and equipment	—			—			—
Provision for (recovery of) losses on accounts receivable	427			(127		)	300
Changes in operating assets and liabilities:
Trade and other accounts receivable	(9,112		)	8,285			(827		)
Inventories	(8,121		)	(6,002		)	(14,123		)
Prepaid expenses and other assets	87			35			122
Deferred income taxes	(1,108		)	—			(1,108		)
Accounts payable and accrued liabilities and deferred revenue	8,469			(3		)	8,466
Accrued employee compensation	179			99			278
Other long-term liabilities	(5,572		)				(5,572		)
Net cash used in operating activities	(5,101		)	—			(5,101		)
Investing activities:
Purchases of property and equipment	(14,466		)	—			(14,466		)
Net cash used in investing activities	(14,466		)	—			(14,466		)
Financing activities:
Principal payments on long-term debt and short-term borrowings	(12,462		)	—			(12,462		)
Proceeds from long-term and short-term borrowings	12,229			—			12,229
Proceeds from exercise of stock warrants	—			—			—
Repurchase of shares for employee tax withholding obligation	(154		)	—			(154		)
Proceeds from issuance of common stock under equity compensation plans	2,819			—			2,819
Proceeds from issuance of common stock under secondary security offering	—			—			—
Release of restricted cash	8,000			—			8,000
Net cash provided by financing activities	10,432			—			10,432
Decrease in cash and cash equivalents from operations	(9,135		)	—			(9,135		)
Effect of exchange rate changes on cash and cash equivalents	(1,405		)	—			(1,405		)
Decrease in cash and cash equivalents	(10,540		)	—			(10,540		)
Cash and cash equivalents at beginning of year	39,829			—			39,829
Cash and cash equivalents at end of year	$	29,289		$	—		$	29,289
Cash paid for:
Interest	$	166		$	—		$	166
Income taxes	$	3,329		$	—		$	3,329
Supplemental schedule of noncash investing and financing activities:
Landlord funding of leasehold improvements	$	1,522		$	—		$	1,522
Conversion of debenture into shares of common stock	$	9,341		$	—		$	9,341
Stock warrant liability settled in shares of common stock	$	—		$	—		$	—

The restated financial information by product line and geographic area for fiscal year 2011 is presented below (in thousands):



	December 31, 2011
	As previously reported		Restatement Adjustments			Restated
Revenues by product line:
Ultracapacitors	$	96,971	$	(10,135	)	$	86,836
High-voltage capacitors	42,309		—			42,309
Microelectronic products	18,031					18,031
Total	$	157,311	$	(10,135	)	$	147,176

Revenues from external customers located in:
China	$	43,187	$	—		$	43,187
United States	30,608		(885		)	29,723
Germany	32,911		(6,658		)	26,253
All other countries	50,605		(2,592		)	48,013
Total	$	157,311	$	(10,135	)	$	147,176