Liquidmetal Technologies Reports First Quarter 2021 Results

b'Liquidmetal\xc2\xae Technologies, Inc. (OTCQB: LQMT), a leading authority on commercial applications of amorphous alloys, reported results for the quarter ended March 31, 2021.\nOur first quarter 2021 results reflect the completion of the first full year under our restructured operating strategy.

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Key Points: 
  • b'Liquidmetal\xc2\xae Technologies, Inc. (OTCQB: LQMT), a leading authority on commercial applications of amorphous alloys, reported results for the quarter ended March 31, 2021.\nOur first quarter 2021 results reflect the completion of the first full year under our restructured operating strategy.
  • During the first quarter, we marked the 100,000th part delivered from our contract manufacturer to support our on-going product development efforts and providing parts to fill customer supply chains.
  • Liquidmetal Technologies is the first company to produce amorphous alloy parts commercially, enabling significant improvements in products across a wide array of industries.
  • If underlying assumptions prove inaccurate or unknown risks or uncertainties materialize, actual results could vary materially from Liquidmetal\'s expectations and projections.


Liquidmetal® Technologies, Inc. (OTCQB: LQMT), a leading authority on commercial applications of amorphous alloys, reported results for the quarter ended March 31, 2021.

Management Commentary

Our first quarter 2021 results reflect the completion of the first full year under our restructured operating strategy. During the first quarter, we marked the 100,000th part delivered from our contract manufacturer to support our on-going product development efforts and providing parts to fill customer supply chains. We continue to attract new customers and are working closely with a range of customers from medical device and consumer markets to prototype and evaluate novel part designs for suitability in volume production.

Q1 2021 Financial Summary

During the first quarter of 2021, the Company generated $72 thousand in revenue through a combination of initial part deliveries for new application development initiatives and royalty revenues under existing contracts.

Cost of goods sold was $55 thousand in Q1 2021 and $36 thousand in Q1 2020. This increase was primarily attributable to pricing variations for application development projects from our contract manufacturer.

Selling, marketing, general and administrative expense was $0.9 million in Q1 2021 and $1.0 million in Q1 2020. The decrease in expenses was attributable to overall lower costs for employee compensation due to continued headcount reductions associated with the 2019 Restructuring Plan.

Research and development expenses were $22 thousand and $29 thousand in Q1 2021 and Q1 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 March 31, 2021, the Company had $1.2 million in cash and cash equivalents and restricted cash, as well as $27.3 million in investments in debt securities. Those readily available sources of liquidity are accessible to advance the Company’s existing strategy, and/or the pursuit of an alternative strategy.

For a more detailed and complete analysis of the Company’s financial results, please refer to the Company’s March 31, 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)

 

 

 

 

 

March 31,

 

December 31,

 

 

 

 

 

2021

 

2020

(Unaudited) (Audited)
ASSETS
 
Current assets:
Cash and cash equivalents

$

1,229

 

$

1,514

 

Restricted cash

 

5

 

 

5

 

Investments in debt securities- short term

 

17,213

 

 

14,720

 

Trade accounts receivable, net of allowance for doubtful accounts

 

54

 

 

271

 

Inventory

 

147

 

 

43

 

Prepaid expenses and other current assets

 

376

 

 

465

 

Total current assets

$

19,024

 

$

17,018

 

Investments in debt securities- long term

 

10,057

 

 

12,768

 

Property and equipment, net

 

8,534

 

 

8,614

 

Patents and trademarks, net

 

139

 

 

158

 

Other assets

 

266

 

 

251

 

Total assets

$

38,020

 

$

38,809

 

 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
Current liabilities:
Accounts payable

 

91

 

 

205

 

Accrued liabilities

 

299

 

 

315

 

Deferred revenue

 

41

 

 

-

 

Total current liabilities

$

431

 

$

520

 

 
Long-term liabilities
Other long-term liabilities

 

899

 

 

899

 

Total liabilities

$

1,330

 

$

1,419

 

 
Shareholders' equity:
Preferred Stock, $0.001 par value; 10,000,000
shares authorized; 0 shares issued and outstanding at
March 31, 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 March 31, 2021
and December 31, 2020, respectively

 

914

 

 

914

 

Warrants

 

18,179

 

 

18,179

 

Additional paid-in capital

 

287,290

 

 

287,183

 

Accumulated deficit

 

(269,617

)

 

(268,926

)

Accumulated other comprehensive income (loss)

 

-

 

 

116

 

Non-controlling interest in subsidiary

 

(76

)

 

(76

)

Total shareholders' equity

$

36,690

 

$

37,390

 

 
Total liabilities and shareholders' equity

$

38,020

 

$

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 March 31,

 

 

 

 

 

2021

 

2020

 
Revenue
Products

$

63

 

$

46

 

Licensing and royalties

 

9

 

 

25

 

Total revenue

 

72

 

 

71

 

 
Cost of sales

 

55

 

 

36

 

Gross profit

 

17

 

 

35

 

 
Operating expenses
Selling, marketing, general and administrative

 

879

 

 

987

 

Research and development

 

22

 

 

29

 

Gain on disposal of long-lived assets

 

-

 

 

(20

)

Total operating expenses

 

901

 

 

996

 

Operating loss

 

(884

)

 

(961

)

 
Lease income

 

132

 

 

88

 

Interest and investment income

 

61

 

 

127

 

 
Loss before income taxes

 

(691

)

 

(746

)

 
Income taxes

 

-

 

 

-

 

 
Net loss

 

(691

)

 

(746

)

 
Net loss attributable to non-controlling interest

 

-

 

 

-

 

Net loss attributable to
Liquidmetal Technologies shareholders

 

(691

)

 

(746

)

 
 
Per common share basic and diluted:
 
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

 

914,449,957

 

 

914,449,957