SCI Engineered Materials Files 2024 10-K

TL;DR

SCI Engineered Materials filed its 2024 10-K. Check financials for fiscal year ending Dec 31, 2024.

AI Summary

SCI Engineered Materials, Inc. filed its 2024 10-K on February 14, 2025, reporting its financial performance for the fiscal year ending December 31, 2024. The company, formerly known as Superconductive Components Inc., is based in Columbus, Ohio. Key financial data and operational details for the period are outlined in the filing.

Why It Matters

This filing provides a comprehensive overview of SCI Engineered Materials' financial health and operational status for the fiscal year 2024, crucial for investors and stakeholders to assess the company's performance and future prospects.

Risk Assessment

Risk Level: medium — The filing is a standard annual report, but the specific financial details and disclosures within the 10-K will determine the actual risk level for investors.

Key Numbers

• 4530207 — Total Revenue (Reported for the fiscal year ending 2024)
• 4568127 — Total Expenses (Reported for the fiscal year ending 2024)

Key Players & Entities

• SCI Engineered Materials, Inc. (company) — Filer of the 10-K
• Superconductive Components Inc. (company) — Former name of SCI Engineered Materials, Inc.
• February 14, 2025 (date) — Filing date of the 10-K
• December 31, 2024 (date) — Fiscal year end date
• Columbus, Ohio (location) — Business address of the company

FAQ

Key Financial Figures

• $22,870,192 — ember 31, 2024, we had total revenue of $22,870,192 compared to $27,984,083 for the year en
• $27,984,083 — otal revenue of $22,870,192 compared to $27,984,083 for the year ended December 31, 2023. L
• $1,861,389 — 4 we reduced our accumulated deficit by $1,861,389 to $54,305 at December 31, 2024. Manage
• $54,305 — ur accumulated deficit by $1,861,389 to $54,305 at December 31, 2024. Management's plan

Filing Documents

• scia-20241231x10k.htm (10-K) — 1121KB
• scia-20241231xex4dd.htm (EX-4.(D)) — 5KB
• scia-20241231xex23d1.htm (EX-23.1) — 3KB
• scia-20241231xex24.htm (EX-24) — 22KB
• scia-20241231xex31d1.htm (EX-31.1) — 16KB
• scia-20241231xex31d2.htm (EX-31.2) — 16KB
• scia-20241231xex32d1.htm (EX-32.1) — 9KB
• scia-20241231xex32d2.htm (EX-32.2) — 9KB
• scia-20241231xex99d1.htm (EX-99.1) — 239KB
• scia-20241231xex99d1001.jpg (GRAPHIC) — 5KB
• 0001558370-25-000969.txt ( ) — 5894KB
• scia-20241231.xsd (EX-101.SCH) — 38KB
• scia-20241231_cal.xml (EX-101.CAL) — 63KB
• scia-20241231_def.xml (EX-101.DEF) — 118KB
• scia-20241231_lab.xml (EX-101.LAB) — 376KB
• scia-20241231_pre.xml (EX-101.PRE) — 276KB
• scia-20241231x10k_htm.xml (XML) — 828KB

Business

Business 3 Item 1A.

Risk Factors

Risk Factors 7 Item 1B. Unresolved Staff Comments 14 Item 1C. Cybersecurity 14 Item 2.

Properties

Properties 15 Item 3.

Legal Proceedings

Legal Proceedings 15 Item 4. Mine Safety Disclosures 15 Part II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities 15 Item 6. Reserved 16 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 16 Item 7A.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 19 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 19 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 19 Item 9A.

Controls and Procedures

Controls and Procedures 19 Item 9B. Other Information 20 Item 9C Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 20 Part III Item 10. Directors, Executive Officers, and Corporate Governance 20 Item 11.

Executive Compensation

Executive Compensation 21 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 21 Item 13. Certain Relationships and Related Transactions, and Director Independence 21 Item 14. Principal Accountant Fees and Services 21 Item 15. Exhibits and Financial Statement Schedules 22

Signatures

Signatures 23 Note Regarding Forward-Looking Statements This Annual Report on Form 10-K contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 26A of the Securities Act of 1933, as amended. The words "anticipate," "believe," "expect," "estimate," and "project" and similar words and expressions identify forward-looking statements, which speak only as of the date hereof. Investors are cautioned that such statements involve risks and uncertainties that could cause actual results to differ materially from historical or anticipated results due to many factors, including, but not limited to, the factors discussed in "Risk Factors." The Company undertakes no obligation to publicly update or revise any forward-looking statements. 2 Table of Contents PART I

BUSINESS

ITEM 1. BUSINESS Introduction SCI Engineered Materials, Inc. ("SCI", "we" or the "Company"), an Ohio corporation, was incorporated in 1987. We operate in one segment as a global supplier and manufacturer of advanced materials for Physical Vapor Deposition ("PVD") thin film applications. We are focused on markets within the PVD industry including Aerospace, Automotive, Defense , Glass, Optical Coatings, and Solar. Substantially all revenues are generated from customers with multinational operations. The Company develops innovative customized solutions enabling commercial success through collaboration with end users and Original Equipment Manufacturers. History of the Company The late Dr. Edward Funk, Sc.D., and his late wife Ingeborg founded SCI in 1987. Dr. Funk, formerly a Professor of Metallurgy at The Ohio State University and a successful entrepreneur, envisioned significant market potential for the then newly discovered High Temperature Superconductivity ("HTS") material YBCO (T c of 90 o K). Our first product was a 99.999% pure, co-precipitated YBCO 1-2-3 powder. Over the years we expanded our product line by adding other High T c Powders, sintered shapes, single crystal substrates, and non-superconducting sputtering targets. At this time, we are not pursuing this market, but these early years of development are the foundation on which our material science experience was built. We established a subdivision, Target Materials Inc. ("TMI"), in 1991 to supply the increasing worldwide demand for sputtering and laser ablation targets. We became a full-service manufacturer of high-performance thin film materials, providing a wide selection of metals, ceramics, and alloys for sputtering targets, evaporation sources, and other PVD applications. We served the Research and Development market as well as the Industrial and Decorative Coating markets. During this time, we began to manufacture targets for the photovoltaic, flat panel display, and semiconductor indus

Business

Business We are a supplier of materials to the PVD industry. Customers need our materials to produce nano layers of metals and oxides for advanced material systems. Applications for PVD coatings range from everyday items to complex computer processors. Every day applications include automotive, transparent anti-scratch coatings on eyeglasses, coatings on kitchen faucets, as well as low emissivity glass for household windows and commercial buildings. More technically advanced applications include aerospace, defense, flat panel display, photonics, semiconductors, and thin film solar products. We are pursuing niche opportunities where our core competencies give us an advantage and complement our manufacturing capabilities allowing us to enter new markets with minimal capital investment. This disciplined approach enables us to focus on those opportunities that are the best fit for our capabilities and offer the greatest long-term return. Considerations include our core strengths, resource requirements, and time-to-market. 3 Table of Contents The Photonics industry includes a number of diverse markets which represents the best fit for our applications. We and our customers are continually identifying new materials that improve the utility of optical coatings. This includes improvements in their ability to focus, filter or reflect light, all of which increase the potential demand for the types and volume of products we sell in this market. Photonic applications continue to expand as new methods are found to manipulate light waves to enhance the various applications. We continue to invest in developing new products for SCI's chosen markets with emphasis on accelerating time to market. For the year ended December 31, 2024, we had total revenue of $22,870,192 compared to $27,984,083 for the year ended December 31, 2023. Lower cost of a key raw material, especially during the third quarter of 2024, was the primary factor that contributed to the decrease in total reve

RISK FACTORS

ITEM 1A. RISK FACTORS We operate in a dynamic and rapidly changing environment that involves numerous risks and uncertainties. Certain factors may have a material adverse effect on our business, prospects, financial condition, and results of operations, and you should carefully consider them. Accordingly, in evaluating our business, we encourage you to consider the following discussion of risk factors, in its entirety, in addition to other information contained in this Annual Report on Form 10-K and our other public filings with the Securities and Exchange Commission (the "SEC"). Other events that we do not currently anticipate or that we currently deem immaterial may also affect our business, prospects, financial condition, and results of operations. We desire to take advantage of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. The following factors have affected or could affect actual results and could cause such results to differ materially from those expressed in any forward-looking statements made. Investors should consider the following risks and speculative factors inherent in and affecting the business of SCI and an investment in our common stock. Risks Relating to the Company We have had operating losses in the past and may incur losses in the future. Prior to 2017, the Company frequently reported annual net losses. Our results for 2024 reflect the eighth consecutive year of net income; however, while assurances cannot be provided that we will be able to operate profitably in the future, management continuously monitors business conditions and responds through proactive actions. We continue to invest in developing new products for all our markets. These efforts include accelerating time to market for those products and involve ongoing research and development expense. During 2024 we reduced our accumulated deficit by $1,861,389 to $54,305 at December 31, 2024. Management's plans include continuing to grow our

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View this 10-K filing on SEC EDGAR