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Liquidmetal Technologies Reports Third Quarter 2021 Results

LQMT | November 15, 2021

Liquidmetal® Technologies, Inc. (OTCQB: LQMT), a leading authority on commercial applications of amorphous alloys, reported results for the quarter ended September 30, 2021.

Management Commentary

“During the third quarter, we transitioned over to a new management team, implemented reductions to our overhead expenses and renewed our focus on growing the business for the long term,” said Tony Chung, CEO. “I look forward to providing our investors with an update on the business during our 2021 year-end conference call to be scheduled in conjunction with the filing of our annual 10-K.”

Q3 2021 Financial Summary

During the third quarter of 2021, the Company generated $406 thousand in revenue through a combination of volume production deliveries and initial part deliveries for new application development initiatives under existing contracts.

Cost of goods sold was $319 thousand in Q3 2021 and $171 thousand in Q3 2020. This increase was primarily attributable to an increase in revenue, with a higher amount related to volume production deliveries, resulting in higher gross margin percentages.

Selling, marketing, general and administrative expense was $1.6 million in Q3 2021 and $1.1 million in Q3 2020. The increase in expenses was primarily attributable to higher stock compensation expense for stock options issued to the Company’s new CEO and modifications to stock options as well as accruals made pursuant to employee separation agreements.

Research and development expenses were $14 thousand and $30 thousand in Q3 2021 and Q3 2020, respectively. Expenses continue to remain low due to a significant decrease in internal development initiatives, in accordance with the 2019 Restructuring Plan.

As of September 30, 2021, the Company had $5.2 million in cash and cash equivalents, as well as $22.0 million in investments in debt securities. Those readily available sources of liquidity are accessible to advance the Company’s existing operations and strategy for long term growth.

For a more detailed and complete analysis of the Company’s financial results, please refer to the Company’s September 30, 2021 Form 10-Q, which was filed earlier today.

About Liquidmetal Technologies

Lake Forest, California-based Liquidmetal Technologies, Inc. is a leading authority and developer 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 2020 annual Report on Form 10-K.

LIQUIDMETAL TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except par value and share data)

	September 30,			December 31,
	2021			2020
	(Unaudited)			(Audited)
ASSETS

Current assets:
Cash and cash equivalents	$	5,233		$	1,514
Restricted cash		5			5
Investments in debt securities- short term		11,631			14,720
Trade accounts receivable, net of allowance for doubtful accounts		353			271
Inventory		22			43
Prepaid expenses and other current assets		597			465
Total current assets	$	17,841		$	17,018
Investments in debt securities- long term		10,398			12,768
Property and equipment, net		8,375			8,614
Patents and trademarks, net		112			158
Other assets		293			251
Total assets	$	37,019		$	38,809

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
Accounts payable	$	194		$	205
Accrued liabilities		917			315
Deferred revenue		41			-
Total current liabilities	$	1,152		$	520

Long-term liabilities
Other long-term liabilities		899			899
Total liabilities	$	2,051		$	1,419

Shareholders' equity:
Preferred Stock, $0.001 par value; 10,000,000 shares authorized; 0 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively		-			-
Common stock, $0.001 par value; 1,100,000,000 shares authorized; 914,449,957 and 914,449,957 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively		914			914
Warrants		18,179			18,179
Additional paid-in capital		287,585			287,183
Accumulated deficit		(271,644	)		(268,926	)
Accumulated other comprehensive income		11			116
Non-controlling interest in subsidiary		(77	)		(76	)
Total shareholders' equity	$	34,968		$	37,390

Total liabilities and shareholders' equity	$	37,019		$	38,809

LIQUIDMETAL TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
(unaudited)

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2021			2020			2021			2020

Revenue
Products	$	406		$	288		$	700		$	367
Licensing and royalties		-			39			21			64
Total revenue	$	406		$	327		$	721		$	431

Cost of sales		319			171			528			242
Gross profit	$	87		$	156		$	193		$	189

Operating expenses
Selling, marketing, general and administrative		1,643			1,096			3,372			2,953
Research and development		14			30			74			86
Gain on disposal of long-lived assets		-			-			-			(35	)
Total operating expenses	$	1,657		$	1,126		$	3,446		$	3,004
Operating loss		(1,570	)		(970	)		(3,253	)		(2,815	)

Lease income		132			132			396			352
Interest and investment income		35			61			138			297

Loss before income taxes	$	(1,403	)	$	(777	)	$	(2,719	)	$	(2,166	)

Income taxes		-			-			-			-

Net loss	$	(1,403	)	$	(777	)	$	(2,719	)	$	(2,166	)

Net loss attributable to non-controlling interest		-			1			1			1
Net loss attributable to Liquidmetal Technologies shareholders	$	(1,403	)	$	(776	)	$	(2,718	)	$	(2,165	)


Per common share basic and diluted:

Net loss per common share attributable to Liquidmetal Technologies shareholders, basic and diluted	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.00	)

Number of weighted average shares - basic and diluted		914,449,957			914,449,957			914,449,957			914,449,957