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.
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LIQUIDMETAL TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except par value and share data)
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December 31, |
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December 31, |
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2017
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2016
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ASSETS
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| Current assets: |
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Cash |
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$ |
41,309 |
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$ |
58,896 |
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Restricted cash |
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5 |
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5 |
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Trade accounts receivable, net of allowance for doubtful accounts |
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157 |
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95 |
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Inventory |
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391 |
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390 |
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Prepaid expenses and other current assets |
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326 |
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312 |
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Total current assets |
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$ |
42,188 |
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$ |
59,698 |
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| Property and equipment, net |
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12,465 |
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1,139 |
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| Patents and trademarks, net |
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408 |
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494 |
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| Other assets |
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14 |
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36 |
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Total assets |
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$ |
55,075 |
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$ |
61,367 |
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LIABILITIES AND SHAREHOLDERS' EQUITY
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| Current liabilities: |
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Short-term debt |
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- |
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- |
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Accounts payable |
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92 |
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331 |
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Accrued liabilities |
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365 |
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1,070 |
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Deferred revenue |
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7 |
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13 |
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Warrant liabilities, current |
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- |
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2,224 |
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Option liabilities |
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- |
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- |
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Total current liabilities |
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$ |
464 |
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$ |
3,638 |
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| Long-term liabilities |
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Warrant liabilities, long-term |
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2,192 |
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2,047 |
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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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$ |
3,512 |
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$ |
6,541 |
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| Shareholders' equity: |
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Preferred Stock, $0.001 par value; 10,000,000 |
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shares authorized; 0 shares issued and outstanding at |
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December 31, 2016 and December 31, 2015, respectively |
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- |
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- |
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Common stock, $0.001 par value; 1,100,000,000 shares authorized;
908,768,116 |
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and 886,090,164 shares issued and outstanding at December 31, 2017 |
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and December 31, 2016, respectively |
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909 |
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886 |
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Warrants |
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18,179 |
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18,179 |
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Additional paid-in capital |
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277,924 |
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272,520 |
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Accumulated deficit |
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(245,376 |
) |
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(236,689 |
) |
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Non-controlling interest in subsidiary |
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(73 |
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(70 |
) |
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Total shareholders' equity |
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$ |
51,563 |
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$ |
54,826 |
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Total liabilities and shareholders' equity |
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$ |
55,075 |
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$ |
61,367 |
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LIQUIDMETAL TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(in thousands, except share and per share data)
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Years Ended December 31,
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2017
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2016
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2015
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| Revenue |
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Products |
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$ |
255 |
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$ |
453 |
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$ |
98 |
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Licensing and royalties |
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66 |
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27 |
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27 |
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Total revenue |
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321 |
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480 |
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125 |
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| Cost of sales |
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696 |
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553 |
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349 |
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Gross profit (loss) |
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(375 |
) |
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(73 |
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(224 |
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| Operating expenses |
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Selling, marketing, general and administrative |
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6,265 |
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7,472 |
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7,010 |
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Research and development |
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1,962 |
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2,342 |
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2,047 |
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Total operating expenses |
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8,227 |
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9,814 |
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9,057 |
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| Operating loss |
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(8,602 |
) |
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(9,887 |
) |
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(9,281 |
) |
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Change in value of warrants, gain (loss) |
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(143 |
) |
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(4,117 |
) |
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1,946 |
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Change in value of option liabilities, loss |
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|
- |
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(2,613 |
) |
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- |
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Loss on contract modification |
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|
- |
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(2,126 |
) |
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|
- |
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Interest expense |
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|
- |
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(9 |
) |
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(4 |
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Interest income |
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|
55 |
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|
- |
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22 |
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| Loss before income taxes |
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(8,690 |
) |
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(18,752 |
) |
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(7,317 |
) |
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Income taxes |
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|
- |
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- |
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- |
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| Net loss and comprehensive loss |
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(8,690 |
) |
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(18,752 |
) |
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(7,317 |
) |
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Net loss attributable to non-controlling interest |
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3 |
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8 |
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|
8 |
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| Net loss and comprehensive loss attributable to |
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Liquidmetal Technologies shareholders |
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|
(8,687 |
) |
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(18,744 |
) |
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(7,309 |
) |
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| Per common share basic and diluted: |
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| Net loss per common share attributable to Liquidmetal |
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Technologies shareholders, basic |
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$ |
(0.01 |
) |
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|
$ |
(0.03 |
) |
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|
$ |
(0.02 |
) |
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| Net loss per common share attributable to Liquidmetal |
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|
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Technologies shareholders, diluted |
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|
$ |
(0.01 |
) |
|
|
$ |
(0.03 |
) |
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|
$ |
(0.02 |
) |
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| Number of weighted average shares - basic |
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|
897,273,890 |
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|
640,157,919 |
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|
470,955,041 |
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| Number of weighted average shares - diluted |
|
|
|
897,273,890 |
|
|
|
|
640,157,919 |
|
|
|
|
470,955,041 |
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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/20180306006752/en/