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Liquidmetal Technologies Reports First Quarter 2019 Results

LAKE FOREST, Calif.--(BUSINESS WIRE)--

Liquidmetal® Technologies, Inc. (LQMT), the leading developer of amorphous alloys and composites, reported results for its first quarter ended March 31, 2019.

Management Commentary

Dr. Bruce Bromage, the Company’s Chief Operating Officer, stated that “While we continue to make progress in executing our business strategy to develop high volume applications, the pace remains slow and below our financial targets. As a result, we have deemed it prudent to undertake a comprehensive review of strategic options, with the goal of maximizing the current and long-term value of the Company."

Q1 2019 Financial Summary

During the first quarter of 2019, the Company generated $223 thousand in revenue through the completion of initial production part runs on our AMM platform and the completion of additional tooling orders on our MIM platform.

Cost of goods sold was $179 thousand in Q1 2019 and $81 thousand in Q1 2018. This increase was primarily attributable to higher production part deliveries under recurring orders and lower material costs due to prior year book markdowns of inventory.

Selling, marketing, general and administrative expense was $1.4 million in Q1 2019 and $1.6 million in Q1 2018. The decrease is primarily due to slightly lower costs associated with employee compensation, inclusive of non-cash stock-based compensation.

Research and development decreased to $489 thousand from $610 thousand in Q1 2018. The decrease is mainly due to a shift to customer support activities as a result of increased production orders.

Cash and restricted cash totaled $33.9 million at March 31, 2019, as compared to $35.2 million at December 31, 2018.

For a more detailed and complete analysis of the Company’s financial results, please refer to the Company’s March 31, 2019 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 2018 Annual Report on Form 10-K.

 
LIQUIDMETAL TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except par value and share data)
     
March 31, December 31,

2019

2018

(Unaudited)

 

ASSETS

 
Current assets:
Cash $ 33,871 $ 35,229
Restricted cash 5 5
Trade accounts receivable 124 120
Inventory 63 31
Prepaid expenses and other current assets   311     363  
Total current assets $ 34,374 $ 35,748
Property and equipment, net 11,727 11,767
Patents and trademarks, net 301 322
Other assets   14     14  
Total assets $ 46,416   $ 47,851  
 

LIABILITIES AND SHAREHOLDERS' EQUITY

 
Current liabilities:
Short-term debt -
Accounts payable 150 253
Accrued liabilities 516 270
Deferred revenue   28     31  
Total current liabilities $ 694 $ 554
 
Long-term liabilities:
Other long-term liabilities   856     856  
Total liabilities $ 1,550 $ 1,410
 
Shareholders' equity:

Preferred Stock, $0.001 par value; 10,000,000 shares authorized; 0 shares issued and outstanding at March 31, 2019 and December 31, 2018, respectively

- -

Common stock, $0.001 par value; 1,100,000,000 shares authorized; 914,316,624 and 914,206,832 shares issued and outstanding at March 31, 2019 and December 31, 2018, respectively

914 914
Warrants 18,179 18,179
Additional paid-in capital 286,469 286,276
Accumulated deficit (260,622 ) (258,854 )
Non-controlling interest in subsidiary (74 ) (74 )
   
Total shareholders' equity 44,866 46,441
   
Total liabilities and shareholders' equity $ 46,416   $ 47,851  
 
 
LIQUIDMETAL TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(in thousands, except share and per share data)
(unaudited)
     
For the Three Months Ended

March 31,

2019

2018

 
Revenue
Products $ 223 $ 80
Licensing and royalties   -     -  
Total revenue 223 80
 
Cost of sales   179     81  
Gross margin (loss) 44 (1 )
 
Operating expenses
Selling, marketing, general and administrative 1,433 1,585
Research and development   489     610  
Total operating expenses   1,922     2,195  
Operating loss (1,878 ) (2,196 )
 
Interest income   110     33  
 
Net loss and comprehensive loss (1,768 ) (2,163 )
 
Net loss attributable to non-controlling interest   -     -  

Net loss and comprehensive loss attributable to Liquidmetal Technologies shareholders

$ (1,768 ) $ (2,163 )
 

 

Net loss per common share attributable to Liquidmetal Technologies shareholders, basic and diluted

$ (0.00 ) $ (0.00 )
 
Number of weighted average shares - basic and diluted   914,280,027     908,912,441  

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