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Superconductor Technologies Inc. Message Board

  • mask_ipx_spx mask_ipx_spx Apr 30, 2013 5:39 AM Flag

    STI debt

    R2D2 states that STI has no debt, thus can't go bankrupt is a lie.
    Per the latest financial report: Other long term liabilities (less current liabilities) = $674,000 part of which are leases that are non-cancelable.
    In the event STI doesn't pay rent, creditor can take STI to court, if court determines STI is liable, but unable to pay (insolvent), liquidation under chapter 7 is ordered, i.e., bankruptcy to resolve insolvency. End of story.
    Bonds, loans, leases, etc are subsets of liabilities, i.e., debt. Subsets of liabilities may have different procedures of enforcing payment, but all are enforceable and are paid prior to the stockholder be they long or short term, secured or unsecured.
    STI doesn't have revenue to offset it's expenses, thus issues stock to cover this deficit, which in turn dilutes the ownership of the current stockholders.
    STI is now forced to issue stock in order to pay expenses a quarter at a time. STI admits it doesn't expect significant revenue till 2014(This is forward looking, thus STI can lie). Per the latest financial report, STI has no means to earn enough revenue to offset expenses.

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    • Robozo the board idiot still can't grasp that bankruptcy is a cure for insolvency. It also appears this clown can't read a financial report.

      Per last 10-Q:
      Current Assets 2011 ; 2012 in order: $8.3m (cash=$6.2m); $4.1m (cash=$3.6m.)
      Net Revenues = $3.5m and Costs & Expenses = $14.5m giving a Loss from Operations of $11.0m offset with Other & Interest Income of $0.1m leaving a $10.9m deficit.

      This deficit was covered by sales of common stock = $9.3m offset by repurchasing of $0.1m leaving $9.2m and depleting cash of $2.5m

      The question remains can STI avoid insolvency and the resulting cure by bankruptcy by generating enough cash (product and/or capital market sales) to offset expenses ?

      Thus far capital market sales have generated enough cash to avoid insolvency, but now STI is forced to go to the market quarterly to remain solvent.

      JQ doesn't expect revenue from commercial wire sales till 2014 and has a long history of being extremely optimistic.

      Currently commercial wire production, be it called pilot or otherwise is zero because the STI designed machines for the 3-step production process doesn't work.

    • I'm sure readers can access wikipedia or other sources concerning bankruptcy. The major point is bankruptcy is a means to discharge debt. If STI in unable to pay the rent, note that the leases are non-cancelable, then eviction is a given and bankruptcy under Federal jurisdiction (U.S. Constitution, Article 1, Section 8, Clause 4) is the means to discharge the debt, i.e., unpaid rent and non-cancelable lease obligations, etc.

      The clown R2D2 continues to babble and lie about this issue, which is easily refuted.

      The topic investors should be concerned over is, will STI start generating enough revenue to cover expenses and debt ? Currently issuing stock has generated sufficient means, but the last couple of dilutions only raised enough for a quarter.

      There will come a point that dilution will not be sufficient, thus bankruptcy, if revenue from operations is not greatly improved. Thus far, revenue from SC wire doesn't exist, due to the fact STI can't manufacture it to market requirements and STI has a history of making great forward looking statements which are not realized.

      • 1 Reply to mask_ipx_spx
      • Where does it state the leases are non-cancellable? Do you deny that for bankruptcy to occur the liabilities have to exceed the assets... The fact is that only after eviction can the lessor even contemplate a lawsuit. Before such a lawsuit would occur the lessor would want some assurance that the costs of the lawsuit will produce an acceptable financial result. Now let's see you cite one case where a lessor sued and forced a company into bankruptcy... Citation of the US constitution is not impressive. He's trying overly hard to impress you. All Article 1 section 8 clause 4 does it to grant congress the power to establish "uniform Laws on the subject of Bankruptcies throughout the United States. The next clause grants congress the power to coin money...There is nothing that is relevant to this discussion...and "Wikipedia" as an authoritative source? Bwahahahahahahahahaha...this BS from a proven liar about STI's CRADA!
        He then rants:"There will come a point that dilution will not be sufficient, thus bankruptcy, if revenue from operations is not greatly improved. Thus far, revenue from SC wire doesn't exist." He has absolutely no proof concerning that last statement about revenue, and as for the first...well you don't have to be a rocket scientist to know that a company who keeps going to the well for financing will eventually run out of steam...and that each dip will cause dilution. The point is if you can't stand the heat...don't jump in the oven!

        The liar is dealing with picayune #$%$. And when (if) STI get's the 100m RCE line up into full operation, there will be a revenue stream (not necessarily huge), BUT it will be a considerable aspect for potential investors to consider when STI goes back for another round of financing.

        Here's the bottom line, you have a paid imbecile (silverback) and a disgruntled ex-employee/big=time STI investor loser who is angry as hell at STI...screaming with their posts that STI is going bankrupt...when that is not true!

    • The unmasked fool claims: "... in the event STI doesn't pay rent, creditor can take STI to court, if court determines STI is liable, but unable to pay (insolvent), liquidation under chapter 7 is ordered, i.e., bankruptcy to resolve insolvency. End of story." Bull dung! lessors can evict...BTW another simple point for the simple fool unmasked.... it is also required that debt exceed assets. No court will order bankruptcy unless that condition exists....it's also part of the definition of insolvency...liabilities exceed assets...

      I also suggest he reads that same SEC filing using "lease" as a search term ...more on that later after he makes another fool of himself.
      I challenge unmasked to show where at any point in time STI's liabilities exceeded assets!

      What an unmitigated fool and liar he is!

    • You must be an idiot that cant read AUSTIN, Texas, April 23, 2013 (GLOBE NEWSWIRE) -- Superconductor Technologies Inc. (STI) (SCON), a world leader in the development and production of high temperature superconducting (HTS) materials and associated technologies, announces that it has recently received purchase orders from multiple customers for its Conductus(R) 2G HTS wire. The backlog from these purchase orders along with other wire shipments that STI has committed to as of April 15, 2013 are expected to exhaust production capacity until at least the third quarter of 2013.

      "Over the last quarter, we have experienced a significant increase in the number of customers placing orders for Conductus wire to complete their product evaluations," stated Adam Shelton, STI's VP of Marketing and Product Line Management. "Several industry leading, multinational companies have submitted purchase orders for wire to qualify in their product designs. This noticeable increase in demand is primarily from customers who are currently selling superconducting devices for emerging smart grid applications. With an embedded base in the legacy utility networks, our customers are well positioned to address the needs of the developing Smart Grid applications on a global scale."

      • 1 Reply to rchites
      • "... are expected to exhaust production capacity until at least the third quarter of 2013."

        Not much of a change since last cc "... We expect that the customer requests already in-house will consume all of the wire we can produce in the first few quarters of 2013."

        I betcha STI is working their tails off to produce these free under 1 meter samples, due to the fact the recently purchased 3-step production line machines can't even produce 1 meter. Hope they don't wear out that lonely under 1 meter R&D RCE machine.

        They'll fill those purchase orders as soon as that wire for the cable demo project is completed.

 
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