Liquidmetal Technologies Reports First Quarter 2019 Results
Liquidmetal Technologies, Inc. (OTCQB: LQMT), the leading developer of amorphous alloys and composites, reported results for its first quarter ended March 31, 2019.
Liquidmetal® Technologies, Inc. (OTCQB: 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) |
|
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|
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 |
- | - | |||||||||
|
Common stock, $0.001 par value; 1,100,000,000 shares authorized; |
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 |
$ | (1,768 | ) | $ | (2,163 | ) | |||||
|
|
|||||||||||
|
Net loss per common share attributable to Liquidmetal |
$ | (0.00 | ) | $ | (0.00 | ) | |||||
| Number of weighted average shares - basic and diluted | 914,280,027 | 908,912,441 | |||||||||
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