Liquidmetal Technologies Reports First Quarter 2016 Results
Liquidmetal® Technologies, Inc. (OTCQB: LQMT), the leading developer of amorphous alloys, reported results for its first
quarter, ended March 31, 2016.
Q1 2016 Operational Highlights
On March 10, 2016, Liquidmetal Technologies, Inc. (the “Company”) entered into a Securities Purchase Agreement with Liquidmetal
Technology Limited, a Hong Kong company (the “Investor”), providing for the purchase of up to 405,000,000 shares of the Company’s
common stock for an aggregate purchase price of $63.4 million. Investor is a newly formed company owned by Mr. Yeung Tak Lugee Li
(“Mr. Li”). On March 10, 2016, Investor purchased 105,000,000 shares for an aggregate purchase price of $8.4 million. The purchase
of the remaining 300,000,000 shares for $55 million is anticipated by August 17, 2016.
Also on March 10, 2016, the Company and DongGuan Eontec Co., Ltd. (“Eontec”) entered into a parallel License Agreement to
cross-license their respective technologies. Eontec is a publicly held Hong Kong corporation listed on the Shenzhen Exchange, of
which Mr. Li is the Chairman and majority stockholder. Eontec is engaged in the business of precision die-casting but has
aggressively extended its research and development activities to include the manufacture of bulk metallic glass in recent
years.
“We are very excited about the potential synergies between LQMT and EONTEC as we seek to develop and grow the market for
Liquidmetal on a global basis. I look forward to providing an additional update to shareholders, beyond the call we had on March
16, 2016, on the progress of this transaction during our shareholder meeting on May 19th,” said Thomas Steipp, President
and CEO at LQMT.
Q1 2016 Financial Summary
In Q1 2016, the Company generated revenues of $168 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 $2.0 million in Q1 2016, as compared to $1.9 million in Q1 2015.
Research and development expense was $559 thousand in Q1 2016, compared to $482 thousand in Q1 2015.
Cash and restricted cash totaled $11.3 million at March 31, 2016, as compared to $4.7 million at December 31, 2015.
About Liquidmetal Technologies
Rancho Santa Margarita, California-based Liquidmetal Technologies, Inc. is the leading developer of bulk alloys that utilize the
performance advantages offered by amorphous alloy technology. Amorphous alloys are unique materials that are distinguished by their
ability to retain a random structure when they solidify, in contrast to the crystalline atomic structure that forms in ordinary
metals and alloys. Liquidmetal Technologies is the first company to produce amorphous alloys in commercially viable bulk form,
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 2015 Annual Report on Form 10-K.
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| LIQUIDMETAL TECHNOLOGIES, INC. AND SUBSIDIARIES |
| CONSOLIDATED BALANCE SHEETS |
| (in thousands, except par value and share data) |
| |
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March 31, |
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December 31, |
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2016 |
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2015 |
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(Unaudited) |
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(Audited) |
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ASSETS
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| Current assets: |
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| Cash |
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$ |
10,287 |
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$ |
2,773 |
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| Restricted cash |
|
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|
1,005 |
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|
2,008 |
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| Trade accounts receivable, net of allowance for doubtful accounts |
|
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102 |
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30 |
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| Inventory |
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152 |
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83 |
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| Prepaid expenses and other current assets |
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|
224 |
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|
408 |
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| Total current assets |
|
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|
$ |
11,770 |
|
|
|
|
$ |
5,302 |
|
| Property and equipment, net |
|
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|
1,263 |
|
|
|
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|
1,370 |
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| Patents and trademarks, net |
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|
568 |
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|
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|
570 |
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| Other assets |
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36 |
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|
|
|
|
31 |
|
| Total assets |
|
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|
$ |
13,637 |
|
|
|
|
$ |
7,273 |
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LIABILITIES, REDEEMABLE COMMON STOCK, AND SHAREHOLDERS' (DEFICIT)
EQUITY
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| Current liabilities: |
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| Short-term debt |
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|
700 |
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|
700 |
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| Accounts payable |
|
|
|
|
209 |
|
|
|
|
|
250 |
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| Accrued liabilities |
|
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|
1,246 |
|
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|
947 |
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| Deferred revenue |
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|
- |
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|
77 |
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| Option liabilities |
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|
5,550 |
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- |
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| Total current liabilities |
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$ |
7,705 |
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$ |
1,974 |
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| Long-term liabilities: |
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| Warrant liabilities |
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2,388 |
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|
59 |
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| Other long-term liabilities |
|
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|
856 |
|
|
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|
856 |
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| Total liabilities |
|
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|
$ |
10,949 |
|
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|
|
$ |
2,889 |
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| Redeemable Common Stock: |
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Common stock, $0.001 par value; 105,000,000 and 0 shares issued and outstanding at March 31, 2016
and December 31, 2015, respectively (Note 14).
|
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7,129 |
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- |
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| Shareholders' (deficit) equity: |
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Preferred Stock, $0.001 par value; 10,000,000 shares authorized; 0 shares issued and outstanding at
March 31, 2016 and December 31, 2015, respectively
|
|
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|
- |
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- |
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Common stock, $0.001 par value; 700,000,000 shares authorized; 477,149,485 and 477,149,485 shares
issued and outstanding at March 31, 2016 and December 31, 2015, respectively.
|
|
|
|
|
477 |
|
|
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|
|
477 |
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| Warrants |
|
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18,179 |
|
|
|
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|
18,179 |
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| Additional paid-in capital |
|
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204,088 |
|
|
|
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|
203,735 |
|
| Accumulated deficit |
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|
(227,121 |
) |
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|
(217,945 |
) |
| Non-controlling interest in subsidiary |
|
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|
(64 |
) |
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|
(62 |
) |
| Total shareholders' (deficit) equity |
|
|
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|
(4,441 |
) |
|
|
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|
4,384 |
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| Total liabilities, redeemable common stock, and shareholders' (deficit)
equity |
|
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|
$ |
13,637 |
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|
|
|
$ |
7,273 |
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| |
| |
| LIQUIDMETAL TECHNOLOGIES, INC. AND SUBSIDIARIES |
| CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS |
| (in thousands, except share and per share data) |
| (unaudited) |
| |
|
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For the Three Months Ended |
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March 31, |
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2016 |
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2015 |
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| Revenue |
|
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| Products |
|
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$ |
165 |
|
|
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|
$ |
23 |
|
| Licensing and royalties |
|
|
|
|
3 |
|
|
|
|
|
3 |
|
| Total revenue |
|
|
|
|
168 |
|
|
|
|
|
26 |
|
|
|
|
|
|
|
|
|
|
| Cost of sales |
|
|
|
|
158 |
|
|
|
|
|
19 |
|
| Gross profit |
|
|
|
|
10 |
|
|
|
|
|
7 |
|
|
|
|
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|
|
|
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| Operating expenses |
|
|
|
|
|
|
|
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| Selling, marketing, general and administrative |
|
|
|
|
2,017 |
|
|
|
|
|
1,852 |
|
| Research and development |
|
|
|
|
559 |
|
|
|
|
|
482 |
|
| Total operating expenses |
|
|
|
|
2,576 |
|
|
|
|
|
2,334 |
|
| Operating loss |
|
|
|
|
(2,566 |
) |
|
|
|
|
(2,327 |
) |
|
|
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|
|
|
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| Change in value of warrant liabilities, loss |
|
|
|
|
(1,569 |
) |
|
|
|
|
(161 |
) |
| Change in value of option liabilities, loss |
|
|
|
|
(5,039 |
) |
|
|
|
|
- |
|
| Interest expense |
|
|
|
|
(4 |
) |
|
|
|
|
- |
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| Interest income |
|
|
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|
- |
|
|
|
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|
8 |
|
|
|
|
|
|
|
|
|
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| Net loss and comprehensive loss |
|
|
|
|
(9,178 |
) |
|
|
|
|
(2,480 |
) |
|
|
|
|
|
|
|
|
|
| Net loss attributable to non-controlling interest |
|
|
|
|
2 |
|
|
|
|
|
2 |
|
|
Net loss and comprehensive loss attributable to Liquidmetal Technologies shareholders
|
|
|
|
$ |
(9,176 |
) |
|
|
|
$ |
(2,478 |
) |
|
|
|
|
|
|
|
|
|
|
Net loss per common share attributable to Liquidmetal Technologies shareholders, basic and
diluted
|
|
|
|
$ |
(0.02 |
) |
|
|
|
$ |
(0.01 |
) |
|
|
|
|
|
|
|
|
|
| Number of weighted average shares - basic and diluted |
|
|
|
|
512,149,485 |
|
|
|
|
|
464,482,819 |
|
|
|
|
|
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|
Liquidmetal Technologies, Inc.
Otis Buchanan, 949-635-2120
Media Relations
otis.buchanan@liquidmetal.com
View source version on businesswire.com: http://www.businesswire.com/news/home/20160510006739/en/