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.
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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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2018
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2017
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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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$ |
39,873 |
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$ |
41,309 |
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Restricted cash |
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5 |
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5 |
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Trade accounts receivable |
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37 |
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157 |
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Inventory |
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467 |
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391 |
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Prepaid expenses and other current assets |
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232 |
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326 |
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Total current assets |
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$ |
40,614 |
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$ |
42,188 |
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| Property and equipment, net |
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12,281 |
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12,465 |
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| Patents and trademarks, net |
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387 |
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408 |
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| Other assets |
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14 |
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14 |
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Total assets |
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$ |
53,296 |
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$ |
55,075 |
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LIABILITIES AND SHAREHOLDERS' EQUITY
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| Current liabilities: |
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Accounts payable |
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163 |
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92 |
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Accrued liabilities |
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361 |
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365 |
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Deferred revenue |
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1 |
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7 |
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Total current liabilities |
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$ |
525 |
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$ |
464 |
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| Long-term liabilities: |
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Warrant liabilities, long-term |
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2,467 |
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2,192 |
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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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$ |
3,848 |
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$ |
3,512 |
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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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March 31, 2018 and December 31, 2017, respectively |
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- |
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- |
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Common stock, $0.001 par value; 1,100,000,000 shares authorized;
909,183,592 |
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and 908,768,116 shares issued and outstanding at March 31, 2018 |
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and December 31, 2017, respectively |
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909 |
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909 |
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Warrants |
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18,179 |
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18,179 |
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Additional paid-in capital |
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278,247 |
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277,924 |
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Accumulated deficit |
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(247,814 |
) |
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(245,376 |
) |
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Non-controlling interest in subsidiary |
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(73 |
) |
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(73 |
) |
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Total shareholders' equity |
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49,448 |
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51,563 |
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Total liabilities and shareholders' equity |
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$ |
53,296 |
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$ |
55,075 |
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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
March 31,
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2018
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2017
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| Revenue |
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Products |
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$ |
80 |
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$ |
48 |
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Licensing and royalties |
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- |
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- |
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Total revenue |
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80 |
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48 |
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| Cost of sales |
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81 |
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62 |
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Gross loss |
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(1 |
) |
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(14 |
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| Operating expenses |
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Selling, marketing, general and administrative |
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1,585 |
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1,703 |
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Research and development |
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610 |
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392 |
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Total operating expenses |
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2,195 |
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2,095 |
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| Operating loss |
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(2,196 |
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(2,109 |
) |
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Change in value of warrant liabilities, gain (loss) |
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(275 |
) |
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1,150 |
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Interest income |
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33 |
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14 |
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| Net loss and comprehensive loss |
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(2,438 |
) |
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(945 |
) |
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| Net loss attributable to non-controlling interest |
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- |
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2 |
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| Net loss and comprehensive loss attributable to |
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Liquidmetal Technologies shareholders |
$ |
(2,438 |
) |
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$ |
(943 |
) |
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| Net loss per common share attributable to Liquidmetal |
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Technologies shareholders, basic and diluted |
$ |
(0.00 |
) |
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$ |
(0.00 |
) |
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| Number of weighted average shares - basic and diluted |
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908,912,441 |
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888,053,138 |
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Liquidmetal Technologies, Inc.
Bryce Van
Media Relations
949-635-2107
bryce.van@liquidmetal.com
View source version on businesswire.com: https://www.businesswire.com/news/home/20180508006656/en/