Honest question here. I am a long-time Apple long - you can check my MB history.
How does LQMT make money here, even if AAPL sells 200mm iWatches? LQMT granted AAPL a perpetual license to its IP for a one time fee (I think it was $20mm), which has already been paid. Neither LQMT nor its contract manufactures will manufacture for AAPL. So how does LQMT get revenue form AAPL's use of this technology?
Thinking of picking up some LQMT stock, but I don't understand their business model
I would also greatly appreciate it if someone could explain this. How often does Apple have to pay Liquid Metal for this exclusive license? It seems to me that if Apple is making millions of consumer electronic products with Liquid Metal then this license to use it would be worth quite a lot. I would appreciate any insight on how Liquid Metal makes money from Apple using it in their products.
My guess is that Apple is just a foot in the door for LQMT. They took the $20M to help keep the lights on while waiting for bigger things to happen. So they give one company rights to use it in a product group (consumer electronics).
Think of all the other applications that the product can be used for!! Apple adds huge legitimacy and gets them noticed by other major industries.
Just my opinion as I see it. Your thoughts?