Aug 8, 2018   SOURCE: BusinessWire

Liquidmetal Technologies Reports Second Quarter 2018 Results

Liquidmetal® Technologies, Inc. (OTCQB: LQMT), the leading developer of amorphous alloys and composites, reported results for its second quarter ended June 30, 2018.

Management Commentary

Regarding the Company’s results for the second quarter of 2018, Bruce Bromage, the Company’s Chief Operating Officer noted, “The second quarter of 2018 has been instrumental in our continued evolution into a trusted, volume manufacturer. We delivered amorphous alloy parts under early production orders with medical and consumer products customers. Our product development efforts continue to focus on lowering manufacturing costs, increasing customer confidence in high volume commercial applications, and developing effective strategies to infiltrate target markets.”

Dr. Bromage went on to note that “We have identified an exceptional candidate to serve as our Vice President of Sales and Marketing. We are excited by a fresh outlook and approach to markets and customers, while maintaining our momentum with key accounts and strategic applications.”

Q2 2018 Financial Summary

During the second quarter of 2018, the Company generated $55 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 $1.5 million in Q2 2018, as compared to $1.3 million in Q2 2017. The increase was primarily due to increases in non-cash expenses for depreciation due to continued capital investments in the Company’s manufacturing center.

Research and development expense was $0.6 million in Q2 2018, as compared to $0.4 million in Q2 2017. The increase from the prior year was mainly due to additional expenses associated with alloy and application development.

Cash and restricted cash totaled $37.9 million at June 30, 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 June 30, 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)

           
June 30, December 31,

2018

2017

(Unaudited) (Audited)

ASSETS

 
Current assets:
Cash and cash equivalents $ 37,902 $ 41,309
Restricted cash 5 5
Trade accounts receivable, net of allowance for doubtful accounts 64 157
Inventory 589 391
Prepaid expenses and other current assets   209     326  
Total current assets $ 38,769 $ 42,188
Property and equipment, net 12,054 12,465
Patents and trademarks, net 365 408
Other assets   14     14  
Total assets $ 51,202   $ 55,075  
 

LIABILITIES AND SHAREHOLDERS' EQUITY

 
Current liabilities:
Accounts payable 65 92
Accrued liabilities 237 365
Deferred revenue   -     7  
Total current liabilities $ 302 $ 464
 
Long-term liabilities:
Warrant liabilities, long-term 2,184 2,192
Other long-term liabilities   856     856  
Total liabilities $ 3,342 $ 3,512
 
Shareholders' equity:
Preferred Stock, $0.001 par value; 10,000,000
shares authorized; 0 shares issued and outstanding at
June 30, 2018 and December 31, 2017, respectively - -
Common stock, $0.001 par value; 1,100,000,000 shares authorized; 909,239,009
and 908,768,116 shares issued and outstanding at June 30, 2018
and December 31, 2017, respectively 909 909
Warrants 18,179 18,179
Additional paid-in capital 278,518 277,924
Accumulated deficit (249,673 ) (245,376 )
Non-controlling interest in subsidiary   (73 )   (73 )
Total shareholders' equity 47,860 51,563
   
Total liabilities and shareholders' equity $ 51,202   $ 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 June 30,

For the Six Months
Ended June 30,

2018

2017

2018

2017

 
Revenue
Products $ 55 $ 58 $ 135 $ 106
Licensing and royalties   -     -     -     -  
Total revenue 55 58 135 106
 
Cost of sales   61     67     142     129  
Gross loss (6 ) (9 ) (7 ) (23 )
 
Operating expenses
Selling, marketing, general and administrative 1,527 1,349 3,112 3,052
Research and development   644     439     1,254     831  
Total operating expenses   2,171     1,788     4,366     3,883  
Operating loss (2,177 ) (1,797 ) (4,373 ) (3,906 )
 
Change in value of warrant liabilities, gain (loss) 283 (2,039 ) 8 (889 )
Interest income   35     15     68     29  
 
Net loss and comprehensive loss (1,859 ) (3,821 ) (4,297 ) (4,766 )
 
Net loss attributable to non-controlling interest   -     1     -     3  
Net loss and comprehensive loss attributable to
Liquidmetal Technologies shareholders $ (1,859 ) $ (3,820 ) $ (4,297 ) $ (4,763 )
 
 
 
Net loss per common share attributable to Liquidmetal
Technologies shareholders, basic and diluted $ (0.00 ) $ (0.00 ) $ (0.00 ) $ (0.01 )
 
Number of weighted average shares - basic and diluted   909,213,870     895,111,164     909,063,156     891,582,151