Aug 8, 2017   SOURCE: BusinessWire

Liquidmetal Reports Second Quarter 2017 Results

Liquidmetal® Technologies, Inc. (OTCQB: LQMT), the leading developer of amorphous alloys, reported results for its second quarter, ended June 30, 2017.

Q2 2017 Operational Highlights

During the second quarter of 2017, the Company received two hot crucible amorphous metal molding machines from its licensing partner Eontec Ltd. These machines allow the production of amorphous alloy parts that are up to three times larger and one-third the cost of established technologies. In addition, the Company continued the build out of its new manufacturing facility which the Company purchased in February of 2017.

“The Company is making significant progress towards expanding its manufacturing capabilities. With the renovation of our state of the art facility nearing completion, we can begin commissioning our manufacturing operations with both our hot and cold crucible amorphous metal molding machines. Exciting times are upon us,” said Professor Li, Chairman and CEO of Liquidmetal.

Q2 2017 Financial Summary

During the second quarter of 2017, the Company generated revenues of $58 thousand as it continued to focus on the development of prototype and commercial parts for its customers and partnering with licensees on the development of the Company’s technology and production processes.

Selling, marketing, general and administrative expense was $1.4 million in Q2 2017, as compared to $1.8 million in Q2 2016. Research and development expense was $439 thousand in Q2 2017, compared to $623 thousand in Q2 2016. The decreases were primarily due to decreases in employee headcount and incentive compensation.

Cash and restricted cash totaled $45.4 million at June 30, 2017, as compared to $58.9 million at December 31, 2016. The decrease was primarily attributable to 2017 capital expenditures associated with the continued build-out of the Company’s manufacturing capabilities.

For a more detailed and complete analysis of the Company’s financial results, please refer to the Company’s June 30, 2017 Form 10Q, which was filed earlier today.

About Liquidmetal Technologies

Lake Forest, California-based Liquidmetal Technologies, Inc. is the leading developer of bulk amorphous alloys. Amorphous alloys are unique materials that are distinguished by their ability to be injection molded and die cast into high performance applications for a broad range of markets. For more information, go to www.liquidmetal.com.

Forward-Looking Statement

This press release contains "forward-looking statements," including but not limited to statements regarding the advantages of Liquidmetal's amorphous alloy technology, scheduled manufacturing of customer parts and other statements associated with Liquidmetal's technology and operations. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or unknown risks or uncertainties materialize, actual results could vary materially from Liquidmetal's expectations and projections. Risks and uncertainties include, among other things; customer adoption of Liquidmetal's technologies and successful integration of those technologies into customer products; potential difficulties or delays in manufacturing products incorporating Liquidmetal's technologies; Liquidmetal's ability to fund its current and anticipated operations; the ability of third party suppliers and manufacturers to meet customer product requirements; general industry conditions; general economic conditions; and governmental laws and regulations affecting Liquidmetal's operations. Additional information concerning these and other risk factors can be found in Liquidmetal's public periodic filings with the U.S. Securities and Exchange Commission, including the discussion under the heading "Risk Factors" in Liquidmetal's 2016 Annual Report on Form 10-K.

 
LIQUIDMETAL TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except par value and share data)
       
June 30, December 31,

2017

2016

(Unaudited) (Audited)

ASSETS

 
Current assets:
Cash $ 45,404 $ 58,896
Restricted cash 5 5
Trade accounts receivable 31 95
Inventory 758 390
Prepaid expenses and other current assets   143     312  
Total current assets $ 46,341 $ 59,698
Property and equipment, net 11,129 1,139
Patents and trademarks, net 451 494
Other assets   14     36  
Total assets $ 57,935   $ 61,367  
 

LIABILITIES AND SHAREHOLDERS' EQUITY

 
Current liabilities:
Accounts payable 79 331
Accrued liabilities 206 1,070
Deferred revenue 38 13
Warrant liabilities, current   1,022     2,224  
Total current liabilities $ 1,345 $ 3,638
 
Long-term liabilities:
Warrant liabilities, long-term 2,826 2,047
Other long-term liabilities   856     856  
Total liabilities $ 5,027 $ 6,541
 
Shareholders' equity:
Preferred Stock, $0.001 par value; 10,000,000
shares authorized; 0 shares issued and outstanding at
June 30, 2017 and December 31, 2016, respectively - -
Common stock, $0.001 par value; 1,100,000,000 shares authorized; 896,814,807
and 886,090,164 shares issued and outstanding at June 30, 2017
and December 31, 2016, respectively. 897 886
Warrants 18,179 18,179
Additional paid-in capital 275,357 272,520
Accumulated deficit (241,452 ) (236,689 )
Non-controlling interest in subsidiary (73 ) (70 )
   
Total shareholders' equity 52,908 54,826
   
Total liabilities and shareholders' equity $ 57,935   $ 61,367  
 
LIQUIDMETAL TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(in thousands, except share and per share data)
(unaudited)
         

For the Three Months
Ended June 30,

For the Six Months
Ended June 30,

 

2017

2016

2017

2016

 
Revenue
Products $ 58 $ 10 $ 106 $ 175
Licensing and royalties   -     24     -     27  
Total revenue 58 34 106 202
 
Cost of sales   67     13     129     171  
Gross profit (loss) (9 ) 21 (23 ) 31
 
Operating expenses
Selling, marketing, general and administrative 1,349 1,765 3,052 3,782
Research and development   439     623     831     1,182  
Total operating expenses   1,788     2,388     3,883     4,964  
Operating loss (1,797 ) (2,367 ) (3,906 ) (4,933 )
 
Change in value of warrant liabilities, (loss) (2,039 ) (879 ) (889 ) (2,448 )
Change in value of option liabilities, gain (loss) - 2,426 - (2,613 )
Interest expense - (4 ) - (8 )
Interest income   15     -     29     -  
 
Net loss and comprehensive loss (3,821 ) (824 ) (4,766 ) (10,002 )
 
Net loss attributable to non-controlling interest   1     2     3     4  
Net loss and comprehensive loss attributable to
Liquidmetal Technologies shareholders $ (3,820 ) $ (822 ) $ (4,763 ) $ (9,998 )
 
 
 
Net loss per common share attributable to Liquidmetal
Technologies shareholders, basic and diluted $ (0.00 ) $ (0.00 ) $ (0.01 ) $ (0.02 )
 
Number of weighted average shares - basic and diluted   895,111,164     582,271,707     891,582,151     547,210,596