Liquidmetal Technologies Reports Results for Fiscal Year 2016
Liquidmetal® Technologies, Inc. (OTCQB: LQMT), the leading developer of amorphous alloys and composites, reported results
for the fiscal year ended December 31, 2016.
Management Commentary
Professor Lugee Li, Chairman, President and CEO of Liquidmetal Technologies, stated, “We recently announced the purchase of a
new, larger manufacturing facility, as well sourcing alternative manufacturing platforms and materials from China-based Eontec.
With these investments, we are actively moving towards increasing our manufacturing capabilities, expanding the range of products
we will be able to manufacture, and providing lower cost solutions to our customers. We believe that these investments, when
combined with an improved capital structure and future strategies, will allow us to accomplish our goal of expanding the
Liquidmetal brand and future profitability.”
2016 Financial Summary
In 2016, the Company generated $480 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 $7.5 million compared to $7.0 million in 2015. The increase was
primarily due to increases in non-cash, stock-based compensation expense and accrued amounts under severance agreements with former
executives.
Research and development expense was $2.3 million compared to $2.1 million in 2015. The increase from the prior year was mainly
due to additional internal projects and personnel relating to product and alloy development.
Cash and restricted cash totaled $58.9 million at December 31, 2016, as compared to $4.8 million at December 31, 2015.
Conference Call
Liquidmetal Technologies management will hold a conference call later today to discuss these results. The Company’s Chairman,
President and CEO Lugee Li, EVP - Business Development Bruce Bromage, and CFO Tony Chung will host the call starting at 4:30 p.m.
Eastern time.
Date: Friday, March 10, 2017
Time: 4:30 p.m. Eastern time (1:30 p.m. Pacific time)
Dial-In Number: 1-888-204-4610
International: 1-913-312-1279
Conference ID: 4550444
The conference call will be broadcast simultaneously and available for replay via the investor section of the Company's website
at www.liquidmetal.com.
Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and
organization.
A replay of the call will be available after 7:30 p.m. Eastern time on the same day through March 17, 2017.
Toll-Free Replay Number: 1-719-457-0820
International Replay Number: 1-888-203-1112
Replay PIN Number: 4550444
About Liquidmetal Technologies
Rancho Santa Margarita, California-based Liquidmetal Technologies, Inc. is the leading developer of bulk alloys and composites
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 2016 Annual Report on Form 10-K.
| |
| LIQUIDMETAL TECHNOLOGIES, INC. AND SUBSIDIARIES |
| CONSOLIDATED BALANCE SHEETS |
| (in thousands, except par value and share data) |
| |
| |
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|
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|
December 31, |
|
December 31, |
|
|
|
|
|
2016
|
|
2015
|
|
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|
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|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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| Current assets: |
|
|
|
|
|
|
Cash |
|
$ |
58,896 |
|
|
$ |
2,773 |
|
|
|
Restricted cash |
|
|
5 |
|
|
|
2,008 |
|
|
|
Trade accounts receivable, net of allowance for doubtful accounts |
|
|
95 |
|
|
|
30 |
|
|
|
Inventory |
|
|
390 |
|
|
|
83 |
|
|
|
Prepaid expenses and other current assets |
|
|
312 |
|
|
|
408 |
|
|
|
|
Total current assets |
|
$ |
59,698 |
|
|
$ |
5,302 |
|
| Property and equipment, net |
|
|
1,139 |
|
|
|
1,370 |
|
| Patents and trademarks, net |
|
|
494 |
|
|
|
570 |
|
| Other assets |
|
|
|
36 |
|
|
|
31 |
|
|
|
|
Total assets |
|
$ |
61,367 |
|
|
$ |
7,273 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)
|
|
|
|
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|
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|
|
|
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| Current liabilities: |
|
|
|
|
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Short-term debt |
|
|
- |
|
|
|
700 |
|
|
|
Accounts payable |
|
|
331 |
|
|
|
250 |
|
|
|
Accrued liabilities |
|
|
1,070 |
|
|
|
947 |
|
|
|
Deferred revenue |
|
|
13 |
|
|
|
77 |
|
|
|
Warrant liabilities, current |
|
|
2,224 |
|
|
|
- |
|
|
|
Option liabilities |
|
|
- |
|
|
|
- |
|
|
|
|
Total current liabilities |
|
$ |
3,638 |
|
|
$ |
1,974 |
|
|
|
|
|
|
|
|
|
| Long-term liabilities |
|
|
|
|
|
|
Warrant liabilities, long-term |
|
|
2,047 |
|
|
|
59 |
|
|
|
Other long-term liabilities |
|
|
856 |
|
|
|
856 |
|
|
|
|
Total liabilities |
|
$ |
6,541 |
|
|
$ |
2,889 |
|
|
|
|
|
|
|
|
|
| Shareholders' equity (deficit): |
|
|
|
|
|
|
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; 886,090,164 and 477,149,485 shares
issued and outstanding at December 31, 2016 and December 31, 2015, respectively
|
|
|
886 |
|
|
|
477 |
|
|
|
Warrants |
|
|
18,179 |
|
|
|
18,179 |
|
|
|
Additional paid-in capital |
|
|
272,520 |
|
|
|
203,735 |
|
|
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Accumulated deficit |
|
|
(236,689 |
) |
|
|
(217,945 |
) |
|
|
Non-controlling interest in subsidiary |
|
|
(70 |
) |
|
|
(62 |
) |
|
|
|
Total shareholders' equity (deficit) |
|
$ |
54,826 |
|
|
$ |
4,384 |
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity (deficit) |
|
$ |
61,367 |
|
|
$ |
7,273 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| LIQUIDMETAL TECHNOLOGIES, INC. AND SUBSIDIARIES |
| CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS |
| (in thousands, except share and per share data) |
| |
|
|
|
|
Years Ended December 31,
|
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2016
|
|
2015
|
|
2014
|
|
|
|
|
|
|
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|
|
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| Revenue |
|
|
|
|
|
|
|
|
|
Products |
|
|
$ |
453 |
|
|
$ |
98 |
|
|
$ |
565 |
|
|
Licensing and royalties |
|
|
27 |
|
|
|
27 |
|
|
|
38 |
|
|
|
Total revenue |
|
|
480 |
|
|
|
125 |
|
|
|
603 |
|
|
|
|
|
|
|
|
|
|
|
| Cost of sales |
|
|
|
553 |
|
|
|
349 |
|
|
|
483 |
|
|
Gross profit (loss) |
|
|
(73 |
) |
|
|
(224 |
) |
|
|
120 |
|
|
|
|
|
|
|
|
|
|
|
| Operating expenses |
|
|
|
|
|
|
|
Selling, marketing, general and administrative |
|
|
7,472 |
|
|
|
7,010 |
|
|
|
7,463 |
|
|
Research and development |
|
|
2,342 |
|
|
|
2,047 |
|
|
|
1,596 |
|
|
|
Total operating expenses |
|
|
9,814 |
|
|
|
9,057 |
|
|
|
9,059 |
|
| Operating loss |
|
|
|
(9,887 |
) |
|
|
(9,281 |
) |
|
|
(8,939 |
) |
|
|
|
|
|
|
|
|
|
|
|
Change in value of warrants, gain (loss) |
|
|
(4,117 |
) |
|
|
1,946 |
|
|
|
2,700 |
|
|
Change in value of option liabilities, loss |
|
|
(2,613 |
) |
|
|
- |
|
|
|
- |
|
|
Loss on contract modification |
|
|
(2,126 |
) |
|
|
- |
|
|
|
- |
|
|
Debt discount amortization expense |
|
|
- |
|
|
|
- |
|
|
|
(373 |
) |
|
Other income |
|
|
- |
|
|
|
- |
|
|
|
30 |
|
|
Interest expense |
|
|
(9 |
) |
|
|
(4 |
) |
|
|
- |
|
|
Interest income |
|
|
- |
|
|
|
22 |
|
|
|
24 |
|
|
|
|
|
|
|
|
|
|
|
| Loss before income taxes |
|
|
(18,752 |
) |
|
|
(7,317 |
) |
|
|
(6,558 |
) |
|
|
|
|
|
|
|
|
|
|
|
Income taxes |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
| Net loss and comprehensive loss |
|
|
(18,752 |
) |
|
|
(7,317 |
) |
|
|
(6,558 |
) |
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to non-controlling interest |
|
|
8 |
|
|
|
8 |
|
|
|
12 |
|
|
Net loss and comprehensive loss attributable to Liquidmetal Technologies shareholders
|
|
|
(18,744 |
) |
|
|
(7,309 |
) |
|
|
(6,546 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Per common share basic and diluted: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per common share attributable to Liquidmetal Technologies shareholders, basic
|
|
$ |
(0.03 |
) |
|
$ |
(0.02 |
) |
|
$ |
(0.01 |
) |
|
|
|
|
|
|
|
|
|
|
|
Net loss per common share attributable to Liquidmetal Technologies shareholders, diluted
|
|
$ |
(0.03 |
) |
|
$ |
(0.02 |
) |
|
$ |
(0.01 |
) |
|
|
|
|
|
|
|
|
|
|
| Number of weighted average shares - basic |
|
|
640,157,919 |
|
|
|
470,955,041 |
|
|
|
441,439,018 |
|
| Number of weighted average shares - diluted |
|
|
640,157,919 |
|
|
|
470,955,041 |
|
|
|
441,439,018 |
|
Liquidmetal Technologies, Inc.
Otis Buchanan
Media Relations
949-635-2120
otis.buchanan@liquidmetal.com
View source version on businesswire.com: http://www.businesswire.com/news/home/20170310005679/en/