8-K/A 1 a8-ka.txt 8-K/A SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K/A AMENDMENT NO. 2 CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of report (Date of earliest event reported): October 21, 1999 ----------------- SATCON TECHNOLOGY CORPORATION -------------------------------------------------------------------------------- (Exact Name of Registrant as Specified in Charter) Delaware 001-11512 04-2857552 -------------------------------------------------------------------------------- (State or Other (Commission (IRS Employer Jurisdiction of File Number) Identification No.) Incorporation) 161 First Street, Cambridge, Massachusetts 02142 -------------------------------------------------------------------------------- (Address of Principal Executive Offices) (Zip Code) Registrant's telephone number, including area code: (617) 661-0540 ----------------- Not Applicable -------------- (Former Name or Former Address, if Changed Since Last Report) This Amendment No. 2 to the Registrant's Current Report on Form 8-K/A dated October 21, 1999 is being filed to adjust the unaudited pro forma combined consolidated financial statements to reflect the Registrant's restated financial statements for the fiscal years ended September 30, 1997, 1998 and 1999. For a discussion of the restatement, see "Management's Discussion and Analysis of Financial Condition and Results of Operations" and the financial statements and related notes included in Amendment No. 2 to the Registrant's Annual Report on Form 10-K/A for the year ended September 30, 1999 as filed with the Securities and Exchange Commission on September 18, 2000. ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
Page ---- Unaudited Pro Forma Combined Consolidated Financial Statements Introduction to Unaudited Pro Forma Combined Consolidated Financial Statements 1 Unaudited Pro Forma Combined Consolidated Financial Statements: Unaudited Pro Forma Combined Consolidated Balance Sheet as of September 30, 1999 2 Unaudited Pro Forma Combined Consolidated Statement of Operations for the year ended September 30, 1999 3 Unaudited Pro Forma Combined Consolidated Statement of Operations for the year ended September 30, 1998 4 Notes to Unaudited Pro Forma Combined Consolidated Financial Statements 5 c) Exhibits None. d) Signatures 6
INTRODUCTION TO UNAUDITED PRO FORMA COMBINED CONSOLIDATED FINANCIAL STATEMENTS On October 21, 1999, SatCon Technology Corporation ("SatCon") completed its acquisition of Ling Electronics, Inc. and Ling Electronics, Ltd. (collectively, "Ling") from Mechanical Technology Incorporated ("MTI"). In consideration for the acquisition of Ling, MTI received $70,000 and 770,000 shares of SatCon's common stock, $0.01 par value per share. The following unaudited pro forma combined consolidated balance sheets as of September 30, 1999 and the unaudited pro forma combined consolidated statements of operations for the years ended September 30, 1999 and 1998 give effect to the acquisition described above accounted for under the purchase method of accounting. The unaudited pro forma combined consolidated financial statements are based on historical consolidated financial statements of SatCon and Ling under the assumptions and adjustments set forth in the accompanying notes to the unaudited pro forma combined consolidated financial statements. The unaudited pro forma combined consolidated balance sheet assumes that the acquisition was consummated on September 30, 1999 and the unaudited pro forma combined consolidated statements of operations for the years ended September 30, 1999 and 1998 assumes the acquisition was consummated on October 1, 1998 and October 1, 1997, respectively. The unaudited pro forma combined consolidated financial statements may not be indicative of the results that actually would have occurred if the acquisition had been consummated on the dates indicated or which may be obtained in the future. The unaudited pro forma combined consolidated financial statements should be read in conjuction with the historical consolidated financial statements of SatCon and Ling. 1 SATCON TECHNOLOGY CORPORATION UNAUDITED PRO FORMA COMBINED CONSOLIDATED BALANCE SHEET (DOLLARS IN THOUSANDS)
AS OF SEPTEMBER 30, 1999 --------------------------------------------------- SATCON LING PRO FORMA PRO FORMA HISTORICAL HISTORICAL ADJUSTMENTS COMBINED ---------- ---------- ----------- --------- ASSETS Current assets: Cash and cash equivalents ............................................ $ 2,533 $ 64 $ (70)(1) $ 2,527 Accounts receivable, net ............................................. 2,799 2,377 5,176 Unbilled contract costs and fees, net ................................ 1,462 -- 1,462 Inventory ............................................................ 3,698 2,807 6,505 Prepaid expenses and other current assets ............................ 349 122 (18)(3) 453 -------- ------- -------- -------- Total current assets .......................................... 10,841 5,370 (88) 16,123 Investment in Beacon Power Corporation...................................... 415 -- 415 Property and equipment, net ............................................... 3,261 394 (144)(2) 3,511 Intangibles, net ........................................................... 3,194 -- 3,755 (3) 6,949 Other long-term assets ..................................................... 104 -- 104 -------- ------- -------- -------- Total assets .................................................. $ 17,815 $ 5,764 $ 3,523 $ 27,102 ======== ======= ======== ======== LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY Current liabilities: Current portion of long-term debt .................................... $ 16 $ -- $ 16 Accounts payable ..................................................... 1,564 409 1,973 Accrued payroll and payroll related expenses ......................... 480 309 789 Deferred revenue ..................................................... 113 14 127 Funding commitment to Beacon Power Corporation ....................... 333 -- 333 Other accrued expenses ............................................... 621 488 159 (3) 1,268 Advance due Parent Company ........................................... -- 6,907 (6,907)(4) - -------- ------- -------- -------- Total current liabilities ..................................... 3,127 8,127 (6,748) 4,506 Long term debt ............................................................. 34 -- 34 Other long-term liabilities ................................................ 30 -- 30 Commitments and contingencies Contingent obligation to Class D preferred stockholders of Beacon Power Corporation............................... 5,309 -- 5,309 Redeemable convertible preferred stock ..................................... 4,894 -- 4,894 STOCKHOLDERS' EQUITY Preferred stock ............................................................ -- -- -- Common stock ............................................................... 96 -- 8 (5) 104 Additional paid-in capital ................................................. 37,074 1,636 6,264 (4),(5) 44,974 Common stock held in escrow ................................................ (428) -- (428) Amounts receivable from exercise of stock options .......................... (1,817) -- (1,817) Accumulated deficit ........................................................ (30,254) (3,988) 3,988 (5) (30,254) Accumulated other comprehensive loss ....................................... (11) 11 (5) - Treasury stock, at cost .................................................... (250) (250) -------- ------- -------- -------- Total stockholders' equity .................................... 4,421 (2,363) 10,271 12,329 -------- ------- -------- -------- Total liabilities, redeemable convertible preferred stock and stockholders' equity ......................... $ 17,815 $ 5,764 $ 3,523 $ 27,102 ======== ======= ======== ========
2 SATCON TECHNOLOGY CORPORATION UNAUDITED PRO FORMA COMBINED CONSOLIDATED STATEMENT OF OPERATIONS (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
FOR THE YEAR ENDED SEPTEMBER 30, 1999 ----------------------------------------------------------- SATCON LING PRO FORMA PRO FORMA HISTORICAL HISTORICAL ADJUSTMENTS COMBINED ---------- ---------- ----------- --------- Revenue: Product revenue............................................. $ 9,123 $ 8,372 $ 17,495 Funded research and development and other revenue........... 6,355 6,355 --------- ----------- -------- --------- Total Revenue ............................................ 15,478 8,372 23,850 Operating costs and expenses: Cost of product revenue .................................... 9,511 6,213 (84)(1) 15,640 Research and development and other revenue expenses: Funded research and development and other revenue expenses ........................................ 5,828 -- 5,828 Unfunded research and development expenses................ 726 188 914 --------- ----------- -------- --------- Total research and development expenses................. 6,554 188 6,742 Selling, general and administrative expenses ............... 8,819 3,058 11,877 Goodwill amortization ...................................... 371 536 (2) 907 --------- ----------- -------- --------- Total operating costs and expenses ......................... 25,255 9,459 452 35,166 --------- ----------- -------- --------- Operating loss ............................................. (9,777) (1,087) (452) (11,316) Other losses ............................................... (150) -- (150) Interest income ............................................ 42 -- 42 Interest expense ........................................... (116) -- (116) --------- ----------- -------- --------- Net loss before income taxes, and loss from Beacon Power Corporation .................................. (10,001) (1,087) (452) (11,540) Provision for income taxes ................................. -- -- Loss from Beacon Power Corporation ......................... (4,341) -- (4,341) --------- ----------- -------- --------- Net loss ................................................... (14,342) (1,087) (452) (15,881) Accretion of redeemable convertible preferred stock discount ............................................ (51) -- (51) --------- ----------- -------- --------- Net loss attributable to common stockholders ............... $ (14,393) $ (1,087) $ (452) $ (15,932) ========= =========== ======== ========= Net loss per share, basic and diluted ...................... $ (1.57) $ (1.60) ========= ========= Weighted average number of common shares, basic and diluted 9,176,041 770,000 9,946,041 ========= ======== =========
3 SATCON TECHNOLOGY CORPORATION UNAUDITED PRO FORMA COMBINED CONSOLIDATED STATEMENT OF OPERATIONS (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
FOR THE YEAR ENDED SEPTEMBER 30, 1998 ---------------------------------------------------------- SATCON LING PRO FORMA PRO FORMA HISTORICAL HISTORICAL ADJUSTMENTS COMBINED ---------- ---------- ----------- --------- Revenue: Product revenue............................................. $ 7,520 $ 12,234 $ 19,754 Funded research and development revenue.................................................... 8,011 8,011 --------- ----------- -------- --------- Total Revenue ......................................... 15,531 12,234 27,765 Operating costs and Expenses: Cost of product revenue .................................... 5,474 8,986 (88)(1) 14,372 Research and development and other revenue expenses: Funded research and development and other revenue expenses ........................................ 5,517 -- 5,517 Unfunded research and development expenses ............... 1,277 99 1,376 --------- ----------- -------- --------- Total research and development expenses ............... 6,794 99 6,893 Selling, general and administrative expenses ............... 4,523 3,584 8,107 Goodwill amortization ...................................... 291 536 (2) 827 --------- ----------- -------- --------- Total operating costs and expenses ......................... 17,082 12,669 448 30,199 --------- ----------- -------- --------- Operating loss ............................................. (1,551) (435) (448) (2,434) Interest income ............................................ 180 -- 180 Interest expense ........................................... (10) -- (10) --------- ----------- -------- --------- Net loss before income taxes and loss from Beacon Power Corporation .................................. (1,381) (435) (448) (2,264) Provision for income taxes ................................. (4) -- (4) Loss from Beacon Power Corporation ......................... (3,473) -- (3,473) --------- ----------- -------- --------- Net loss ................................................... $ (4,858) $ (435) $ (448) $ (5,741) ========= =========== ======== ========= Net loss per share, basic and diluted ...................... $ (0.54) $ (0.59) ========= ========= Weighted average number of common shares, basic and diluted 8,956,671 770,000 9,726,671 ========= ======== =========
4 NOTES TO UNAUDITED PRO FORMA COMBINED CONSOLIDATED FINANCIAL STATEMENTS The unaudited pro forma combined consolidated balance sheet gives effect to the acquisition, which was accounted for under the purchase method of accounting, as if it had been consummated on September 30, 1999. The following is a summary of adjustments reflected in the unaudited pro forma combined consolidated balance sheet: (1) Represents $70,000 of cash paid pursuant to the stock purchase agreement. (2) Represents the adjustments to reflect the fair value of Ling's property and equipment. (3) Represents the purchase price of approximately $7,806,000, including direct acquisition costs of $177,000 of which approximately $18,000 had been incurred as of September 30, 1999, in excess of the fair value of the net assets acquired of approximately $4,071,000. (4) Represents the contribution of the advance due the parent company of Ling to the equity of Ling prior to the acquisition. (5) Represents the elimination of Ling's historical equity and the recording of the purchase price. The unaudited pro forma combined consolidated statements of operations have been prepared to reflect the acquisition as if it occurred on October 1, 1997. The excess of the purchase price over the fair value of the net assets acquired is being amortized on a straight-line basis over a 7-year period. Pro forma net loss per share has been computed using the weighted average shares of common stock outstanding adjusted for the issuance of 770,000 shares in connection with the acquisition. The following is a summary of adjustments reflected in the unaudited pro forma combined consolidated statements of operations: (1) Represents the adjustment to depreciation expense to reflect the fair value of Ling's property and equipment. (2) Represents the amortization of goodwill associated with the acquisition of Ling. 5 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. SATCON TECHNOLOGY CORPORATION Date: May 1, 2001 By: /s/ Sean F. Moran ---------------------------------------------- Sean F. Moran Chief Financial Officer (Principal Financial and Accounting Officer) 6