LAKE FOREST, Calif.--Liquidmetal® Technologies, Inc. (OTCQB: LQMT), the leading developer of amorphous alloys, reported results for its third quarter ended September 30, 2017.
Q3 2017 Operational Highlights
The Company reached major milestones in its readiness plan for volume production in medical and automotive markets. Showcasing its new manufacturing facility at its recent open house, the Company demonstrated its ENGEL-based medical grade molding systems and upgraded EON industrial grade molding systems. New metal injection molding production systems were also introduced. The facility is configured to scale rapidly. A planned power upgrade will support additional expansion in the first half of 2018.
“Our customers have shifted from an interest in a novel technology to a strong desire to produce high volumes of amorphous metal parts. We now have the capabilities customers demand to scale high-value production,” said Bruce Bromage, COO.
Q3 2017 Financial Summary
During the third quarter of 2017, the Company generated revenues of $36 thousand as it continued to focus on the development 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 $1.7 million in both Q3 2017 and Q3 2016. Research and development expense was $500 thousand in Q3 2017, compared to $548 thousand in Q3 2016.
Cash and restricted cash totaled $43.3 million at September 30, 2017, as compared to $58.9 million at December 31, 2016. The decrease was primarily attributable to 2017 capital expenditures associated with the continued build-out of the Company’s manufacturing capabilities.
For a more detailed and complete analysis of the Company’s financial results, please refer to the Company’s September 30, 2017 Form 10Q, which was filed earlier today.
About Liquidmetal Technologies
Lake Forest, California-based Liquidmetal Technologies, Inc. is the leading developer of bulk amorphous alloys. Amorphous alloys are unique materials that are distinguished by their ability to be injection molded and die cast into high performance applications for a broad range of markets. For more information, go to www.liquidmetal.com.
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)
|September 30,||December 31,|
|Trade accounts receivable||4||95|
|Prepaid expenses and other current assets||408||312|
|Total current assets||$||44,416||$||59,698|
|Property and equipment, net||11,943||1,139|
|Patents and trademarks, net||430||494|
LIABILITIES AND SHAREHOLDERS' EQUITY
|Warrant liabilities, current||1,582||2,224|
|Total current liabilities||$||2,263||$||3,638|
|Warrant liabilities, long-term||3,765||2,047|
|Other long-term liabilities||856||856|
|Preferred Stock, $0.001 par value; 10,000,000|
|shares authorized; 0 shares issued and outstanding at|
|September 30, 2017 and December 31, 2016, respectively||-||-|
|Common stock, $0.001 par value; 1,100,000,000 shares authorized; 901,910,986|
|and 886,090,164 shares issued and outstanding at September 30, 2017|
|and December 31, 2016, respectively.||901||886|
|Additional paid-in capital||276,315||272,520|
|Non-controlling interest in subsidiary||(73||)||(70||)|
|Total shareholders' equity||49,919||54,826|
|Total liabilities and shareholders' equity||$||56,803||$||61,367|
|LIQUIDMETAL TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(in thousands, except share and per share data)
For the Three Months
For the Nine Months
Ended September 30,
|Licensing and royalties||-||-||-||27|
|Cost of sales||87||165||216||336|
|Gross profit (loss)||(51||)||(11||)||(74||)||20|
|Selling, marketing, general and administrative||1,739||1,679||4,791||5,461|
|Research and development||500||548||1,331||1,730|
|Total operating expenses||2,239||2,227||6,122||7,191|
|Change in value of warrant liabilities, gain (loss)||(1,674||)||563||(2,563||)||(1,885||)|
|Change in value of option liabilities, loss||-||-||-||(2,613||)|
|Loss on contract modification||-||(2,126||)||-||(2,126||)|
|Net loss and comprehensive loss||(3,951||)||(3,802||)||(8,717||)||(13,804||)|
|Net loss attributable to non-controlling interest||-||2||3||6|
|Net loss and comprehensive loss attributable to|
|Liquidmetal Technologies shareholders||$||(3,951||)||$||(3,800||)||$||(8,714||)||$||(13,798||)|
|Net loss per common share attributable to Liquidmetal|
|Technologies shareholders, basic and diluted||$||(0.00||)||$||(0.01||)||$||(0.01||)||$||(0.02||)|
|Number of weighted average shares - basic and diluted||899,432,109||582,332,818||894,198,803||558,918,003|