Press Release

LAKE FOREST, Calif.--(BUSINESS WIRE)--Aug. 8, 2017-- Liquidmetal® Technologies, Inc. (OTCQB: LQMT), the leading developer of amorphous alloys, reported results for its second quarter, ended June 30, 2017.

Q2 2017 Operational Highlights

During the second quarter of 2017, the Company received two hot crucible amorphous metal molding machines from its licensing partner Eontec Ltd. These machines allow the production of amorphous alloy parts that are up to three times larger and one-third the cost of established technologies. In addition, the Company continued the build out of its new manufacturing facility which the Company purchased in February of 2017.

“The Company is making significant progress towards expanding its manufacturing capabilities. With the renovation of our state of the art facility nearing completion, we can begin commissioning our manufacturing operations with both our hot and cold crucible amorphous metal molding machines. Exciting times are upon us,” said Professor Li, Chairman and CEO of Liquidmetal.

Q2 2017 Financial Summary

During the second quarter of 2017, the Company generated revenues of $58 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 $1.4 million in Q2 2017, as compared to $1.8 million in Q2 2016. Research and development expense was $439 thousand in Q2 2017, compared to $623 thousand in Q2 2016. The decreases were primarily due to decreases in employee headcount and incentive compensation.

Cash and restricted cash totaled $45.4 million at June 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 June 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.

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)
					June 30,				December 31,
						2017				2016
					(Unaudited)				(Audited)
ASSETS
Current assets:
		Cash			$	45,404			$	58,896
		Restricted cash				5				5
		Trade accounts receivable				31				95
		Inventory				758				390
		Prepaid expenses and other current assets				143				312
			Total current assets		$	46,341			$	59,698
Property and equipment, net						11,129				1,139
Patents and trademarks, net						451				494
Other assets						14				36
			Total assets		$	57,935			$	61,367
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
		Accounts payable				79				331
		Accrued liabilities				206				1,070
		Deferred revenue				38				13
		Warrant liabilities, current				1,022				2,224
			Total current liabilities		$	1,345			$	3,638
Long-term liabilities:
		Warrant liabilities, long-term				2,826				2,047
		Other long-term liabilities				856				856
			Total liabilities		$	5,027			$	6,541
Shareholders' equity:
		Preferred Stock, $0.001 par value; 10,000,000
			shares authorized; 0 shares issued and outstanding at
			June 30, 2017 and December 31, 2016, respectively			-				-
		Common stock, $0.001 par value; 1,100,000,000 shares authorized; 896,814,807
			and 886,090,164 shares issued and outstanding at June 30, 2017
			and December 31, 2016, respectively.			897				886
		Warrants				18,179				18,179
		Additional paid-in capital				275,357				272,520
		Accumulated deficit				(241,452	)			(236,689	)
		Non-controlling interest in subsidiary				(73	)			(70	)
			Total shareholders' equity			52,908				54,826
			Total liabilities and shareholders' equity		$	57,935			$	61,367

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 June 30,								For the Six Months Ended June 30,
						2017				2016				2017				2016
Revenue
	Products				$	58			$	10			$	106			$	175
	Licensing and royalties					-				24				-				27
		Total revenue				58				34				106				202
Cost of sales						67				13				129				171
	Gross profit (loss)					(9	)			21				(23	)			31
Operating expenses
	Selling, marketing, general and administrative					1,349				1,765				3,052				3,782
	Research and development					439				623				831				1,182
		Total operating expenses				1,788				2,388				3,883				4,964
Operating loss						(1,797	)			(2,367	)			(3,906	)			(4,933	)
	Change in value of warrant liabilities, (loss)					(2,039	)			(879	)			(889	)			(2,448	)
	Change in value of option liabilities, gain (loss)					-				2,426				-				(2,613	)
	Interest expense					-				(4	)			-				(8	)
	Interest income					15				-				29				-
Net loss and comprehensive loss						(3,821	)			(824	)			(4,766	)			(10,002	)
Net loss attributable to non-controlling interest						1				2				3				4
Net loss and comprehensive loss attributable to
	Liquidmetal Technologies shareholders				$	(3,820	)		$	(822	)		$	(4,763	)		$	(9,998	)
Net loss per common share attributable to Liquidmetal
	Technologies shareholders, basic and diluted				$	(0.00	)		$	(0.00	)		$	(0.01	)		$	(0.02	)
Number of weighted average shares - basic and diluted						895,111,164				582,271,707				891,582,151				547,210,596

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Source: Liquidmetal Technologies, Inc.

Liquidmetal Technologies, Inc.
Otis Buchanan
Media Relations
949-635-2120
otis.buchanan@liquidmetal.com