Mar 7, 2018   SOURCE: BusinessWire

Liquidmetal Technologies Reports Results for Fiscal Year 2017

Liquidmetal® Technologies, Inc. (OTCQB: LQMT), the leading developer of amorphous alloys and composites, reported results for the fiscal year ended December 31, 2017.

Management Commentary

“We made excellent progress in 2017 toward establishing global manufacturing operations for our revolutionary technology,” said Bruce Bromage, the Company’s Chief Operating Officer. “We made significant investments to commercialize our technologies and commission scalable manufacturing facilities. At the same time, we developed our markets through customer prototypes, and streamlined operations with reduced overhead costs. We are sharpening our cost models to reflect lower costs for higher volume materials and production to ensure competitive responses to RFQs as part of our manufacturing business model.”

Dr. Bromage continued, “Our focus this year is to bring Medical and Automotive development projects into production. We are encouraged by high levels of customer interest in our newer industrial amorphous metal molding and metal injection molding operations, which typically have shorter product development timelines. Fielding production parts is likely a demand-catalyst for customers investing in new technologies. Once initial products are introduced, the Company is prepared to scale rapidly.”

2017 Financial Summary

In 2017, the Company generated $321 thousand in revenue as it continued to focus on the development and manufacturing of prototype and commercial parts for its customers and partnering with licensees on the development of the Company’s technology and production processes.

Cost of sales was $696 thousand compared to $553 thousand in 2016. The increase was primarily due to non-cash write-downs of raw material inventory following a change in the Company’s pricing strategy to further grow a sales pipeline.

Selling, marketing, general and administrative expense was $6.3 million compared to $7.5 million in 2016. The decrease was primarily due to reductions in overall headcount, and associated salary expense, as well as a full reduction in short-term incentive compensation.

Research and development expense was $2.0 million compared to $2.3 million in 2016. The decrease from the prior year was mainly due to a full reduction in short-term incentive compensation and a lower volume of development projects in 2017.

Cash and restricted cash totaled $41.3 million at December 31, 2017, as compared to $58.9 million at December 31, 2016. The current year decrease was primarily due to capital investments in the build-out of the Company’s new manufacturing facility and the overall expansion of operations.

About Liquidmetal Technologies

Lake Forest, California-based Liquidmetal Technologies, Inc. is the leading producer of parts made with amorphous alloys, also known scientifically as Bulk Metallic Glasses or BMGs. The non-crystalline atomic structure of these materials imparts unique performance properties, including the ability to injection-mold with micron-level precision, lustrous finishes, high strength, hardness and corrosion resistance, and remarkable elasticity. Liquidmetal Technologies is the first company to produce amorphous alloy parts commercially, enabling significant improvements in products across a wide array of industries. 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 2017 Annual Report on Form 10-K.

 
LIQUIDMETAL TECHNOLOGIES, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except par value and share data)

           
December 31, December 31,

2017

2016

 

ASSETS

 
Current assets:
Cash $ 41,309 $ 58,896
Restricted cash 5 5
Trade accounts receivable, net of allowance for doubtful accounts 157 95
Inventory 391 390
Prepaid expenses and other current assets   326     312  
Total current assets $ 42,188 $ 59,698
Property and equipment, net 12,465 1,139
Patents and trademarks, net 408 494
Other assets   14     36  
Total assets $ 55,075   $ 61,367  
 

LIABILITIES AND SHAREHOLDERS' EQUITY

 
Current liabilities:
Short-term debt - -
Accounts payable 92 331
Accrued liabilities 365 1,070
Deferred revenue 7 13
Warrant liabilities, current - 2,224
Option liabilities   -     -  
Total current liabilities $ 464 $ 3,638
 
Long-term liabilities
Warrant liabilities, long-term 2,192 2,047
Other long-term liabilities   856     856  
Total liabilities $ 3,512 $ 6,541
 
Shareholders' equity:
Preferred Stock, $0.001 par value; 10,000,000
shares authorized; 0 shares issued and outstanding at
December 31, 2016 and December 31, 2015, respectively - -
Common stock, $0.001 par value; 1,100,000,000 shares authorized; 908,768,116
and 886,090,164 shares issued and outstanding at December 31, 2017
and December 31, 2016, respectively 909 886
Warrants 18,179 18,179
Additional paid-in capital 277,924 272,520
Accumulated deficit (245,376 ) (236,689 )
Non-controlling interest in subsidiary   (73 )   (70 )
Total shareholders' equity $ 51,563 $ 54,826
   
Total liabilities and shareholders' equity $ 55,075   $ 61,367  
 
 
LIQUIDMETAL TECHNOLOGIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(in thousands, except share and per share data)

     

Years Ended December 31,

2017

   

2016

   

2015

 
Revenue
Products $ 255 $ 453 $ 98
Licensing and royalties   66     27     27  
Total revenue 321 480 125
 
Cost of sales   696     553     349  
Gross profit (loss) (375 ) (73 ) (224 )
 
Operating expenses
Selling, marketing, general and administrative 6,265 7,472 7,010
Research and development   1,962     2,342     2,047  
Total operating expenses   8,227     9,814     9,057  
Operating loss (8,602 ) (9,887 ) (9,281 )
 
Change in value of warrants, gain (loss) (143 ) (4,117 ) 1,946
Change in value of option liabilities, loss - (2,613 ) -
Loss on contract modification - (2,126 ) -
Interest expense - (9 ) (4 )
Interest income   55     -     22  
 
Loss before income taxes (8,690 ) (18,752 ) (7,317 )
 
Income taxes   -     -     -  
 
Net loss and comprehensive loss (8,690 ) (18,752 ) (7,317 )
 
Net loss attributable to non-controlling interest   3     8     8  
Net loss and comprehensive loss attributable to
Liquidmetal Technologies shareholders   (8,687 )   (18,744 )   (7,309 )
 
 
Per common share basic and diluted:
 
Net loss per common share attributable to Liquidmetal
Technologies shareholders, basic $ (0.01 ) $ (0.03 ) $ (0.02 )
 
Net loss per common share attributable to Liquidmetal
Technologies shareholders, diluted $ (0.01 ) $ (0.03 ) $ (0.02 )
 
Number of weighted average shares - basic   897,273,890     640,157,919     470,955,041  
Number of weighted average shares - diluted   897,273,890     640,157,919     470,955,041