May 8, 2018   SOURCE: BusinessWire

Liquidmetal Technologies Reports First Quarter 2018 Results

Liquidmetal® Technologies, Inc. (OTCQB: LQMT), the leading developer of amorphous alloys and composites, reported results for its first quarter ended March 31, 2018.

Management Commentary

Regarding the Company’s results for the first quarter of 2018, Paul Hauck, the Company’s Executive Vice President of Sales and Marketing noted “The Liquidmetal sales and marketing team increased it’s go-to-market and sales intensity during the first quarter of 2018, stimulating customer interest. The Company’s successful biocompatibility testing results have helped generate medical device manufacturer interests and new prototype orders during the first quarter. Several key prototype programs from the medical and automotive markets are in testing with customers, and some are anticipated to yield production tooling orders before the end of 2018. Additionally, changes in pricing strategies have helped generate the largest number of key opportunities the Company has observed in the past two years.”

Mr. Hauck went on to note that “The Company received production orders from Zyris/Isolite and C.F. Martin during the first quarter. Both customer orders provide the Company with the opportunity to demonstrate ongoing production capabilities to new customers. Liquidmetal also passed its first detailed customer quality audit recently, which increases the Company’s confidence in meeting demanding customer requirements.”

Q1 2018 Financial Summary

During the first quarter of 2018, the Company generated $80 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.

Selling, marketing, general and administrative expense was $1.6 million in Q1 2018, as compared to $1.7 million in Q1 2017. The decrease was primarily due to reductions in overall headcount, and associated salary expense.

Research and development expense was $0.6 million in Q1 2018, as compared to $0.4 million in Q1 2017. The increase from the prior year was mainly due to additional expenses associated with alloy and application development.

Cash and restricted cash totaled $39.9 million at March 31, 2018, as compared to $41.3 million at December 31, 2017.

For a more detailed and complete analysis of the Company’s financial results, please refer to the Company’s March 31, 2018 Form 10Q, which was filed earlier today.

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)

     
March 31, December 31,

 

2018

2017

(Unaudited) (Audited)

ASSETS

 
Current assets:
Cash $ 39,873 $ 41,309
Restricted cash 5 5
Trade accounts receivable 37 157
Inventory 467 391
Prepaid expenses and other current assets   232     326  
Total current assets $ 40,614 $ 42,188
Property and equipment, net 12,281 12,465
Patents and trademarks, net 387 408
Other assets   14     14  
Total assets $ 53,296   $ 55,075  
 

LIABILITIES AND SHAREHOLDERS' EQUITY

 
Current liabilities:
Accounts payable 163 92
Accrued liabilities 361 365
Deferred revenue   1     7  
Total current liabilities $ 525 $ 464
 
Long-term liabilities:
Warrant liabilities, long-term 2,467 2,192
Other long-term liabilities   856     856  
Total liabilities $ 3,848 $ 3,512
 
Shareholders' equity:
Preferred Stock, $0.001 par value; 10,000,000
shares authorized; 0 shares issued and outstanding at
March 31, 2018 and December 31, 2017, respectively - -
Common stock, $0.001 par value; 1,100,000,000 shares authorized; 909,183,592
and 908,768,116 shares issued and outstanding at March 31, 2018
and December 31, 2017, respectively 909 909
Warrants 18,179 18,179
Additional paid-in capital 278,247 277,924
Accumulated deficit (247,814 ) (245,376 )
Non-controlling interest in subsidiary (73 ) (73 )
   
Total shareholders' equity 49,448 51,563
   
Total liabilities and shareholders' equity $ 53,296   $ 55,075  
 
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
March 31,

2018

2017

 
Revenue
Products $ 80 $ 48
Licensing and royalties   -     -  
Total revenue 80 48
 
Cost of sales   81     62  
Gross loss (1 ) (14 )
 
Operating expenses
Selling, marketing, general and administrative 1,585 1,703
Research and development   610     392  
Total operating expenses   2,195     2,095  
Operating loss (2,196 ) (2,109 )
 
Change in value of warrant liabilities, gain (loss) (275 ) 1,150
Interest income   33     14  
 
Net loss and comprehensive loss (2,438 ) (945 )
 
Net loss attributable to non-controlling interest   -     2  
Net loss and comprehensive loss attributable to
Liquidmetal Technologies shareholders $ (2,438 ) $ (943 )
 
 
 
Net loss per common share attributable to Liquidmetal
Technologies shareholders, basic and diluted $ (0.00 ) $ (0.00 )
 
Number of weighted average shares - basic and diluted   908,912,441     888,053,138