MIKROS SYSTEMS CORPORATION 3490 U.S. Route #1, Bldg. #5 Princeton, NJ 08540 (609) 987-1513 June 13, 1996 SECURITIES AND EXCHANGE COMMISSION 450 5th Street, NW Judiciary Plaza Washington, DC 20549 RE: MIKROS SYSTEMS CORPORATION/10K-A Dear Sirs: Pursuant to the Securities Exchange Act of 1934, as amended, Mikros Systems Corporation, a Delaware corporation (the "Corporation"), hereby encloses herewith amended pages for form 10K filed on May 17, 1996 for the fiscal year ended December 31, 1995. This filing is being effected by direct transmission to the Securities and Exchange Commission's (the "Commission") EDGAR System. If you have any questions or comments concerning this filing, kindly contact the undersigned. Very truly yours, /s/ Joseph R. Benek - -------------------- Joseph R. Benek Vice President Finance & Treasurer Enc. Item 6. Selected Financial Data (1) - ------------------------------------ YEARS ENDED DECEMBER 31, 1995 1994 1993 1992 1991 ------------------------------------------------------ INCOME STATEMENT Total Revenue $3,379,897 $4,445,468 $2,909,202$2,899,810 $2,787,054 Net Income(Loss) (647,673) 151,635 447,140 116,636 114,899 Income (Loss) per common share-Primary (.10) .01 .09 .02 .03 Fully Diluted (.10) .01 .09 .02 .02 Weighted average number of common shares outstanding- Primary 7,285,441 7,135,441 4,371,011 4,357,108 3,975,546 Weighted average number of common shares outstanding- Fulled Diluted 12,880,930 8,415,576 5,376,011 5,362,108 4,980,546 BALANCE SHEET Current Assets 283,309 1,405,554 518,289 647,639 400,728 Current Liabilities 604,527 1,118,537 304,246 1,026,009 1,356,255 Total Assets 546,995 1,641,001 806,006 912,492 628,076 Long-Term Liabilities 342,869 287,692 419,873 500,526 2,500 Total liabilities 947,396 1,406,229 724,119 1,526,535 1,358,755 Shareholders' Equity (Capital Deficiency) (480,851) 154,322 1,437 (688,843) (785,379) <FN> (1) The above data should be read in conjunction with the financial statements of the Company included elsewhere herein. Item 12. Security Ownership of Certain Beneficial Owners and Management - ------------------------------------------------------------- Common Stock - ------------ The following table sets forth certain information, as of May 17, 1996, with respect to holdings of the Company's Common Stock by (i) each person known by the Company to be the beneficial owner of more than 5% of the total number of shares of Common Stock outstanding as of such date, (ii) each of the nominees (which includes all current directors and Named Executives), and (iii) all current directors and officers as a group. AMOUNT AND NATURE OF BENEFICIAL PERCENT NAME OF BENEFICIAL OWNER OWNERSHIP(1) OF CLASS - ------------------------ ----------------- -------- (i) Certain Beneficial Owners: Transitions Two, Limited Partnership 920 Hopmeadow Street Simsbury, Connecticut 06070 2,137,775(2) 22.2 (ii) Nominees: Joseph R. Burns 1,113,081(3) 14.4 William V. Goodwin 56,250(4) * Thomas J. Meaney 1,934,500(5) 23.7 Wayne E. Meyer 1,133,750(6) 14.1 Frederick C. Tecce 835,000(7) 10.6 John B. Torkelsen 1,878,383(8) 22.0 (iii) All Current Directors and Officers as a Group (eight persons) 6,482,119 66.8 - ------------------------------------------- * Less than 1% (1) Except as otherwise indicated, all shares are beneficially owned and the sole investment and voting power is held by the persons named. (2) Includes 250,000 shares issuable upon conversion of Convertible Preferred Stock plus 1,750,275 shares issuable upon conversion of Series B Stock. (3) Includes 14,748 shares issuable upon conversion of Series B Stock and 100,000 shares issuable upon the exercise of warrants. (4) Includes 56,250 shares issuable upon the exercise of options. (5) Includes 50,000 shares issuable upon conversion of Convertible Preferred Stock plus 199,500 shares issuable upon conversion of Series B Stock and 275,000 shares issuable on the exercise of warrants. (6) Includes 30,000 shares issuable upon conversion of Series B Stock and 75,000 shares issuable upon the exercise of options and 318,750 shares issuable upon the exercise of warrants. (7) Includes 275,000 shares issuable upon the exercise of warrants. (8) Includes 130,000 shares held of record by Princeton Venture Research, Inc., a corporation wholly owned by Mr. Torkelsen. Also includes 202,500 shares issuable upon conversion of Convertible Preferred Stock and 695,883 shares issuable upon conversion of Series B Stock. The Series B Stock is held of record by Princeton Venture Research, Inc. MIKROS SYSTEMS CORPORATION STATEMENTS OF OPERATIONS For the Year Ended December 31, 1995 1994 1993 ------------ ---------- ---------- Revenues: Equipment Sales $1,390,085 $1,397,000 $ 63,952 Contract Research and Development 1,989,812 3,048,468 2,845,250 ------------ ---------- ---------- Total Revenues 3,379,897 4,445,468 2,909,202 ------------ ---------- ---------- Cost of Sales: Equipment Sales 1,079,873 1,041,195 22,914 Contract Research and Development 1,796,168 2,341,474 2,030,939 ------------ ---------- ---------- Total Cost of Sales 2,876,041 3,382,669 2,053,853 ------------ ---------- ---------- Gross Margin 503,856 1,062,799 855,349 ------------ ---------- ---------- Expenses: Research and Development 238,120 - - General and Administrative 855,925 850,091 678,900 Interest 57,334 60,973 25,152 ------------ ---------- ---------- Total Expenses 1,151,379 911,064 704,052 ------------ ---------- ---------- Income (Loss) before Taxes and Extraordinary Item (647,523) 151,735 151,297 Provision for Income Taxes 150 100 50 ------------ ---------- ---------- Income (Loss) before Extraordinary Item (647,673) 151,635 151,247 Extraordinary Item: Gain from Debt Restructure - - 295,893 ------------ ---------- ---------- Net Income (Loss) ($647,673) $151,635 $447,140 ============ ========== ========== Earnings per share: Primary: Net Income (Loss) Before Extraordinary Item ($0.10) $0.01 $0.02 Extraordinary Item - - 0.07 ----------- ---------- ---------- Net Income (Loss) per share ($0.10) $0.01 $0.09 =========== ========== ========== Fully Diluted: Net Income (Loss) Before Extraordinary Item ($0.10) $0.01 $0.03 Extraordinary Item - - 0.06 ----------- ---------- ---------- Net Income (Loss) per share ($0.10) $0.01 $0.09 ============ ========== ========== See Notes to Financial Statements EXHIBIT 11.0 COMPUTATION OF EARNINGS PER SHARE Year Ended December 31, 1995 1994 1993 (000's Omitted) --------- ---------- -------- Primary Earnings(Loss) Income (Loss) extraordinary items ($ 648) $ 152 $ 151 Deduct dividends on preferred shares 69 69 69 --------- --------- --------- Income (Loss) applicable to common stock before extraordinary items ( 717) 83 82 Extraordinary items - - 296 --------- --------- --------- Income (Loss) applicable to common stock ($ 717) $ 83 $ 378 ========= ========= ========= Shares Weighted average number of common shares outstanding 7,285,441 7,056,536 4,371,011 Add shares issuable from assumed exercise of options and warrants - 78,905 - --------- --------- --------- 7,285,441 7,135,441 4,371,011 ========= ========= ========= Primary earnings per common share Income (Loss) before extraordinary items ($ .10) $.01 $ .02 Extraordinary items - - .07 ---------- ---------- ---------- Net income (Loss) ($ .10) $ .01 $ .09 ========== ========== ========== Assuming full dilution Earnings Income (Loss) before extraordinary items ($ 648) $ 152 $ 151 Extraordinary items - - 296 ---------- ---------- --------- Net income (Loss) ($ 648) $ 152 $ 447 ========== ========== ========= Shares Weighted average number of common shares outstanding 7,285,441 7,135,441 4,371,011 Assuming conversion of preferred stock 4,399,989 1,005,000 1,005,000 Assuming exercise of options and warrants reduced by the number of shares which could have been purchased with the proceeds from exercise of such options and warrants 1,195,500 275,135 - ---------- ---------- ---------- Weighted average number of common shares outstanding as adjusted 12,880,930 8,415,576 5,376,011 =========== ========== ========== Earnings per common share assuming full dilution Income (Loss) before extraordinary items* ($.05)* $.02* $.03 Extraordinary items - - .06 ---------- ---------- --------- Net Income (Loss) ($.05)* $.02* $.09 ========== ========== ========= * Earnings (loss) per share with conversion is anti-dilutive and therefore is not used.