Press Release
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Management Commentary
During 2019, the Company announced and completed a corporate restructuring (the “Restructuring”) that was focused on the shifting of internal manufacturing efforts to partnered sources, right-sizing the Company’s expense structure and employee base, and maximizing the value of the Company’s proprietary and financial assets, while also maintaining the Liquidmetal brand. The Company notes the following highlights with respect to these efforts:
-
Successful completion of initial orders with
Dongguan Yihao Metal Materials Technology Co. Ltd. during the fourth quarter of 2019 and the first quarter of 2020. The Company continues to seek transition and development projects to be manufactured under this arrangement. -
Entering into a manufacturing partnership with Eutectix in
February 2020 , that combines licensed IP, specialized equipment, and facilities to support manufacturing performed by Eutectix inTolleson, AZ. -
Entering into a corporate lease agreement for the Company’s
Lake Forest, CA , facility inJanuary 2020 . The lease will provide predicable rental income for at least the next five years. - Actively investing excess capital in investment grade debt securities to improve returns while maintaining liquidity and minimizing credit risk.
- Successful completion of higher volume transition orders with existing customers to provide them with ample inventory for 2020, while the Company validates outsourced manufacturing options.
“Partnering with Yihao has significantly expanded our production capabilities and lowered our costs, improving our competitive position,” said
2019 Financial Summary
Revenues were
Cost of goods sold was
Selling, marketing, general and administrative expense was
Research and development expenses decreased to
Cash and restricted cash totaled
For a more detailed and complete analysis of the Company’s financial results, please refer to the Company’s
About
Forward-Looking Statement
This press release contains "forward-looking statements," including but not limited to statements regarding the advantages of
CONSOLIDATED BALANCE SHEETS (in thousands, except par value and share data) |
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|
|
||||||
2019 |
|
2018 |
||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents |
$ |
19,543 |
|
$ |
35,229 |
|
||
Restricted cash |
|
5 |
|
|
5 |
|
||
Investments in debt securities- short term |
|
4,415 |
|
|
- |
|
||
Trade accounts receivable, net of allowance for doubtful accounts |
|
303 |
|
|
120 |
|
||
Inventory |
|
12 |
|
|
31 |
|
||
Prepaid expenses and other current assets |
|
322 |
|
|
363 |
|
||
Total current assets |
$ |
24,600 |
|
$ |
35,748 |
|
||
Investments in debt securities- long term |
|
7,074 |
|
|
- |
|
||
Property and equipment, net |
|
8,819 |
|
|
11,767 |
|
||
Patents and trademarks, net |
|
239 |
|
|
322 |
|
||
Equipment held for sale |
|
585 |
|
|
- |
|
||
Other assets |
|
14 |
|
|
14 |
|
||
Total assets |
$ |
41,331 |
|
$ |
47,851 |
|
||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable |
|
132 |
|
|
253 |
|
||
Accrued liabilities |
|
775 |
|
|
270 |
|
||
Deferred revenue |
|
- |
|
|
31 |
|
||
Total current liabilities |
$ |
907 |
|
$ |
554 |
|
||
Long-term liabilities | ||||||||
Other long-term liabilities |
|
856 |
|
|
856 |
|
||
Total liabilities |
$ |
1,763 |
|
$ |
1,410 |
|
||
Shareholders' equity: | ||||||||
Preferred Stock, |
|
- |
|
|
- |
|
||
Common stock, |
|
914 |
|
|
914 |
|
||
Warrants |
|
18,179 |
|
|
18,179 |
|
||
Additional paid-in capital |
|
286,832 |
|
|
286,276 |
|
||
Accumulated deficit |
|
(266,284 |
) |
|
(258,854 |
) |
||
Accumulated other comprehensive income |
|
2 |
|
|
- |
|
||
Non-controlling interest in subsidiary |
|
(75 |
) |
|
(74 |
) |
||
Total shareholders' equity |
$ |
39,568 |
|
$ |
46,441 |
|
||
Total liabilities and shareholders' equity |
$ |
41,331 |
|
$ |
47,851 |
|
CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data) |
||||||||
Years Ended |
||||||||
2019 |
2018 |
|||||||
Revenue | ||||||||
Products |
$ |
1,325 |
|
$ |
484 |
|
||
Licensing and royalties |
|
48 |
|
|
48 |
|
||
Total revenue |
|
1,373 |
|
|
532 |
|
||
Cost of sales |
|
832 |
|
|
1,164 |
|
||
Gross profit (loss) |
|
541 |
|
|
(632 |
) |
||
Operating expenses | ||||||||
Selling, marketing, general and administrative |
|
5,424 |
|
|
5,899 |
|
||
Research and development |
|
1,342 |
|
|
2,429 |
|
||
Impairment of long-lived assets |
|
1,676 |
|
|
- |
|
||
Gain on disposal of long-lived assets |
|
(11 |
) |
|
- |
|
||
Total operating expenses |
|
8,431 |
|
|
8,328 |
|
||
Operating loss |
|
(7,890 |
) |
|
(8,960 |
) |
||
Interest and investment income |
|
459 |
|
|
259 |
|
||
Loss before income taxes |
|
(7,431 |
) |
|
(8,701 |
) |
||
Income taxes |
|
- |
|
|
- |
|
||
Net loss |
|
(7,431 |
) |
|
(8,701 |
) |
||
Net loss attributable to non-controlling interest |
|
1 |
|
|
1 |
|
||
Net loss attributable to |
|
(7,430 |
) |
|
(8,700 |
) |
||
Per common share basic and diluted: | ||||||||
Net loss per common share attributable to |
$ |
(0.01 |
) |
$ |
(0.01 |
) |
||
Net loss per common share attributable to |
$ |
(0.01 |
) |
$ |
(0.01 |
) |
||
Number of weighted average shares - basic |
|
914,352,127 |
|
|
910,546,059 |
|
||
Number of weighted average shares - diluted |
|
914,352,127 |
|
|
910,546,059 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20200310005955/en/
Bryce Van
Media Relations
949-635-2107
bryce.van@liquidmetal.com
Source: