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UNITED STATES 

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

							

FORM 10-Q

 /X/ Quarterly report pursuant to Section 13 or 15 (d) of the Securities

Exchange Act of 1934

For the quarterly period ended March 31, 2005

or

/ / Transition report pursuant to Section 13 or 15 (d) of the Securities

Exchange Act of 1934

For the transition period from  to 				
Commission File Number 0-6890
**MECHANICAL TECHNOLOGY INCORPORATED**
(Exact name of registrant as specified in its charter)
**New York**14-1462255
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)**431 New Karner Road, Albany, New York 12205

(Address of principal executive offices)        (Zip Code)  
**(518) 533-2200

(Registrant's telephone number, including area code)
**Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes x No  ̈

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).  Yes   x No    ̈

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

Class
Outstanding at May 4,  2005**Common Stock, $1.00 Par Value**30,676,626 Shares**														

			

MECHANICAL TECHNOLOGY INCORPORATED AND SUBSIDIARIES

INDEX

 

 

 

Part I. FINANCIAL INFORMATION
Page No.  
Item 1.  Financial Statements

Financial Statements of Mechanical Technology Incorporated and Subsidiaries   
Condensed Consolidated Balance Sheets - March 31, 2005 (Unaudited) and December 31, 2004  
3-4  
Condensed Consolidated Statements of Operations - Three months ended March 31, 2005 and 2004 (Unaudited)
5  
Condensed Consolidated Statements of Shareholders' Equity and Comprehensive Income -   Three months ended March 31, 2005 and 2004 (Unaudited)
6  
Condensed Consolidated Statements of Cash Flows - Three months ended March 31, 2005  and 2004 (Unaudited)
7  
Notes to Condensed Consolidated Financial Statements (Unaudited)
8-24  
Item 2.  Management's Discussion and Analysis of Financial Condition 

and Results of Operations
25-33  
Item 3.  Quantitative and Qualitative Disclosures About Market Risk
33  
Item 4.  Controls and Procedures
33-34  
Part II.  OTHER INFORMATION   
Item 1.  Legal Proceedings
35
Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds
35
Item 3.  Defaults Upon Senior Securities
35
Item 4.  Submission of Matters to a Vote of Security Holders
35
Item 5.  Other Information
35
Item 6.  Exhibits
35  
Signatures
36
 

 

 

 

 

 

 

 

 

 

2
**PART I.  FINANCIAL INFORMATION

  Item 1.  Financial Statements****MECHANICAL TECHNOLOGY INCORPORATED AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

As of March 31, 2005 (Unaudited) and December 31, 2004

(Dollars in thousands)

 

 **
Mar. 31, 
Dec. 31, 
2005
2004
Assets  
Current Assets:  
  Cash and cash equivalents
$18,418
$22,545
  Securities available for sale
19,095
17,678
  Accounts receivable, less allowances of $58 in 2005 and 2004  
1,531
1,772
  Other receivables - related parties
-
3
  Inventories
1,118
1,136
  Prepaid expenses and other current assets
    852
    504
    Total Current Assets
41,014
43,638   
Long Term Assets:  
  Securities available for sale - restricted
17,820
16,497
  Property, plant and equipment, net
2,780
2,884
  Deferred income taxes
  3,507
   3,811
    Total Assets
$65,121
$66,830** 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of the condensed consolidated financial statements.
**3
**MECHANICAL TECHNOLOGY INCORPORATED AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

As of March 31, 2005 (Unaudited) and December 31, 2004  

 (Dollars in thousands, except share data)
 
Mar. 31, 
Dec. 31,  
2005
2004
Liabilities and Shareholders' Equity     
Current Liabilities:  
  Accounts payable
$     640
$      13
  Accrued liabilities
3,001
3,287
  Accrued liabilities - related parties
9
-
  Income taxes payable
32
40
  Deferred income taxes
  5,042
  5,486
    Total Current Liabilities
  8,724
  8,826
Long-Term Liabilities:  
  Derivative liability
4,359
1,125
  Other credits
       24
        24
    Total Liabilities
 13,107
   9,975   
Commitments and Contingencies   
Minority interests
      836
   1,271   
Shareholders' Equity:  
  Common stock, par value $1 per share, authorized 75,000,000;  issued**********************