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Liquidmetal Technologies Reports Results for Fiscal Year 2016

RANCHO SANTA MARGARITA, Calif.--(BUSINESS WIRE)--

Liquidmetal® Technologies, Inc. (LQMT), the leading developer of amorphous alloys and composites, reported results for the fiscal year ended December 31, 2016.

Management Commentary

Professor Lugee Li, Chairman, President and CEO of Liquidmetal Technologies, stated, “We recently announced the purchase of a new, larger manufacturing facility, as well sourcing alternative manufacturing platforms and materials from China-based Eontec. With these investments, we are actively moving towards increasing our manufacturing capabilities, expanding the range of products we will be able to manufacture, and providing lower cost solutions to our customers. We believe that these investments, when combined with an improved capital structure and future strategies, will allow us to accomplish our goal of expanding the Liquidmetal brand and future profitability.”

2016 Financial Summary

In 2016, the Company generated $480 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 $7.5 million compared to $7.0 million in 2015. The increase was primarily due to increases in non-cash, stock-based compensation expense and accrued amounts under severance agreements with former executives.

Research and development expense was $2.3 million compared to $2.1 million in 2015. The increase from the prior year was mainly due to additional internal projects and personnel relating to product and alloy development.

Cash and restricted cash totaled $58.9 million at December 31, 2016, as compared to $4.8 million at December 31, 2015.

Conference Call

Liquidmetal Technologies management will hold a conference call later today to discuss these results. The Company’s Chairman, President and CEO Lugee Li, EVP - Business Development Bruce Bromage, and CFO Tony Chung will host the call starting at 4:30 p.m. Eastern time.

Date: Friday, March 10, 2017
Time: 4:30 p.m. Eastern time (1:30 p.m. Pacific time)
Dial-In Number: 1-888-204-4610
International: 1-913-312-1279
Conference ID: 4550444

The conference call will be broadcast simultaneously and available for replay via the investor section of the Company's website at www.liquidmetal.com.

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization.

A replay of the call will be available after 7:30 p.m. Eastern time on the same day through March 17, 2017.

Toll-Free Replay Number: 1-719-457-0820
International Replay Number: 1-888-203-1112
Replay PIN Number: 4550444

About Liquidmetal Technologies

Rancho Santa Margarita, California-based Liquidmetal Technologies, Inc. is the leading developer of bulk alloys and composites that utilize the performance advantages offered by amorphous alloy technology. Amorphous alloys are unique materials that are distinguished by their ability to retain a random structure when they solidify, in contrast to the crystalline atomic structure that forms in ordinary metals and alloys. Liquidmetal Technologies is the first company to produce amorphous alloys in commercially viable bulk form, 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 2016 Annual Report on Form 10-K.

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

2016

2015

 

ASSETS

 
Current assets:
Cash $ 58,896 $ 2,773
Restricted cash 5 2,008
Trade accounts receivable, net of allowance for doubtful accounts 95 30
Inventory 390 83
Prepaid expenses and other current assets   312     408  
Total current assets $ 59,698 $ 5,302
Property and equipment, net 1,139 1,370
Patents and trademarks, net 494 570
Other assets   36     31  
Total assets $ 61,367   $ 7,273  
 

LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)

 
Current liabilities:
Short-term debt - 700
Accounts payable 331 250
Accrued liabilities 1,070 947
Deferred revenue 13 77
Warrant liabilities, current 2,224 -
Option liabilities   -     -  
Total current liabilities $ 3,638 $ 1,974
 
Long-term liabilities
Warrant liabilities, long-term 2,047 59
Other long-term liabilities   856     856  
Total liabilities $ 6,541 $ 2,889
 
Shareholders' equity (deficit):

Preferred Stock, $0.001 par value; 10,000,000 shares authorized; 0 shares issued and outstanding at December 31, 2016 and December 31, 2015, respectively

- -

Common stock, $0.001 par value; 1,100,000,000 shares authorized; 886,090,164 and 477,149,485 shares issued and outstanding at December 31, 2016 and December 31, 2015, respectively

886 477
Warrants 18,179 18,179
Additional paid-in capital 272,520 203,735
Accumulated deficit (236,689 ) (217,945 )
Non-controlling interest in subsidiary   (70 )   (62 )
Total shareholders' equity (deficit) $ 54,826 $ 4,384
   
Total liabilities and shareholders' equity (deficit) $ 61,367   $ 7,273  
 
 
LIQUIDMETAL TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(in thousands, except share and per share data)
   

Years Ended December 31,

 

2016

 

2015

 

2014

 
Revenue
Products $ 453 $ 98 $ 565
Licensing and royalties   27     27     38  
Total revenue 480 125 603
 
Cost of sales   553     349     483  
Gross profit (loss) (73 ) (224 ) 120
 
Operating expenses
Selling, marketing, general and administrative 7,472 7,010 7,463
Research and development   2,342     2,047     1,596  
Total operating expenses   9,814     9,057     9,059  
Operating loss (9,887 ) (9,281 ) (8,939 )
 
Change in value of warrants, gain (loss) (4,117 ) 1,946 2,700
Change in value of option liabilities, loss (2,613 ) - -
Loss on contract modification (2,126 ) - -
Debt discount amortization expense - - (373 )
Other income - - 30
Interest expense (9 ) (4 ) -
Interest income   -     22     24  
 
Loss before income taxes (18,752 ) (7,317 ) (6,558 )
 
Income taxes   -     -     -  
 
Net loss and comprehensive loss (18,752 ) (7,317 ) (6,558 )
 
Net loss attributable to non-controlling interest   8     8     12  

Net loss and comprehensive loss attributable to Liquidmetal Technologies shareholders

(18,744 ) (7,309 ) (6,546 )
 
 
Per common share basic and diluted:
 

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

$ (0.03 ) $ (0.02 ) $ (0.01 )
 

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

$ (0.03 ) $ (0.02 ) $ (0.01 )
 
Number of weighted average shares - basic   640,157,919     470,955,041     441,439,018  
Number of weighted average shares - diluted   640,157,919     470,955,041     441,439,018  

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