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Nature of the Business and Operations and Liquidity
12 Months Ended
Mar. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Nature of the Business and Operations and Liquidity
Nature of the Business and Operations and Liquidity
Nature of the Business and Operations
American Superconductor Corporation (together with its subsidiaries, “AMSC” or the “Company”) was founded on April 9, 1987. The Company is a leading provider of megawatt-scale solutions that lower the cost of wind power and enhance the performance of the power grid. In the wind power market, the Company enables manufacturers to field wind turbines through its advanced engineering, support services and power electronics products. In the power grid market, the Company enables electric utilities and renewable energy project developers to connect, transmit and distribute power through its transmission planning services and power electronics and superconductor-based products. The Company’s wind and power grid products and services provide exceptional reliability, security, efficiency and affordability to its customers.
The Company’s consolidated financial statements have been prepared on a going concern basis in accordance with United States generally accepted accounting principles (“GAAP”) and the Securities and Exchange Commission’s (“SEC”) instructions to Form 10-K. The going concern basis of presentation assumes that the Company will continue operations and will be able to realize its assets and discharge its liabilities and commitments in the normal course of business.
On March 24, 2015, the Company effected a 1-for-10 reverse stock split of its common stock. Trading of the Company’s common stock reflected the reverse stock split beginning on March 25, 2015. Unless otherwise indicated, all historical references to shares of common stock, shares of restricted stock, restricted stock units, shares underlying options, warrants or calculations that use common stock for per share financial reporting have been adjusted for comparative purposes to reflect the impact of the 1-for-10 reverse stock split as if it had occurred at the beginning of the earliest period presented.
Liquidity
The Company has experienced recurring operating losses and as of March 31, 2017, the Company had an accumulated deficit of $955.6 million. In addition, the Company has experienced recurring negative operating cash flows.  At March 31, 2017, the Company had cash and cash equivalents of $26.8 million. Cash used in operations for the year ended March 31, 2017 was $11.2 million.
From April 1, 2011 through the date of this filing, the Company has reduced its global workforce substantially, including an 8% reduction in force, primarily affecting employees in its Devens, Massachusetts facility, effective April 4, 2017.  The Company has taken actions to consolidate certain business operations to reduce facility costs.  As of March 31, 2017, the Company had a global workforce of 354 persons.  The Company plans to closely monitor its expenses and, if required, expects to further reduce operating costs and capital spending to enhance liquidity. The Company expects to incur restructuring charges of $1.5 million to $2.0 million in cash severance expenses in the first quarter of fiscal 2017, in connection with the workforce reduction.
Over the last several years, the Company has entered into several debt and equity financing arrangements in order to enhance liquidity.  During the fiscal years ended March 31, 2013 through 2017, the Company generated aggregate cash flows from financing activities of $69.9 million, including net proceeds of $2.5 million during the three months ended March 31, 2017 from the Company's At Market Issuance Sales Agreement ("ATM") with FBR Capital Markets & Co.  In addition, on May 10, 2017, the Company completed an additional equity offering, which generated net proceeds of approximately $14.7 million, after deducting underwriting discounts and commissions and estimated offering expenses payable by the Company. The Company terminated the ATM in conjunction with this equity offering. See Note 9, “Debt”, Note 12 “Stockholders’ Equity”, and Note 19, "Subsequent Events" for further discussion of these financing arrangements. The Company believes that it is in compliance with the covenants and restrictions included in the agreements governing its debt arrangements as of March 31, 2017.
In December 2015, the Company entered into a set of strategic agreements valued at approximately $210.0 million with Inox, which includes a multi-year supply contract pursuant to which the Company will supply electric control systems to Inox Wind Ltd. (“Inox”) and a license agreement allowing Inox to manufacture a limited number of electrical control systems over the next three to four years.  After this initial three to four year period, Inox agreed that the Company will continue as Inox’s preferred supplier and Inox will be required to purchase from the Company a majority of its electric control systems requirements for an additional three-year period. 
The Company believes based on the information presented above, and its annual management assessment, that it has sufficient liquidity to fund its operations, capital expenditures and scheduled cash payments under its debt obligations to meet the liquidity needs for the next twelve months following the issuance of the financial statements.  The Company’s liquidity is highly dependent on its ability to increase revenues, its ability to control its operating costs, its ability to maintain compliance with the covenants and restrictions on its debt obligations (or obtain waivers from the lender in the event of non-compliance), and its ability to raise additional capital, if necessary.  There can be no assurance that the Company will be able to continue to raise additional capital from other sources or execute on any other means of improving liquidity described above.