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Liquidmetal Technologies Reports Second Quarter 2014 Results

RANCHO SANTA MARGARITA, Calif.--(BUSINESS WIRE)--Aug. 12, 2014-- Liquidmetal® Technologies, Inc. (OTCQB: LQMT), the leading developer of amorphous alloys and composites, reported results for the quarter ended June 30, 2014.

Q2 2014 Operational Highlights

During the second quarter of 2014, the Company commenced its direct efforts to advance the commercialization of its technology. This was enabled by the settlement of the arbitration proceeding and termination of the exclusive Manufacturing Services Agreement between the Company and Visser Precision Cast, LLC. As a result, the Company is establishing its Manufacturing Center of Excellence which will encompass a fully functional, automated production cell to make Liquidmetal components. The Manufacturing Center of Excellence represents a significant investment by the Company and is expected to be completed by the end of the third quarter of 2014.

Management Commentary

“This past quarter represented a significant milestone in our move to commercialize this technology,” said Tom Steipp, President and CEO. “We not only settled the arbitration and extended our Capture Period Agreement, but we were able to add cash to our balance sheet in anticipation of the progress that we expect to see subsequent to the opening of our Manufacturing Center of Excellence in October.”

Q2 2014 Financial Summary

In Q2 2014, the company generated revenues of $153 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 $2.0 million compared to $1.2 million in Q2 2013. The increase was primarily due to additional legal fees incurred during Q2 2014 related to the arbitration process and final settlement with our former contract manufacturer, Visser Precision Cast.

Research and development expense was $392,000 compared to $224,000 in Q2 2013.

Cash totaled $13.9 million at June 30, 2014, as compared to $2.1 million at December 31, 2013.

Conference Call

Liquidmetal Technologies management will hold a conference call later today (August 12, 2014) to discuss these results. The Company’s President and CEO Tom Steipp and CFO Tony Chung will host the call starting at 4:30 p.m. Eastern time. A question and answer session will follow management’s presentation.

        Date:   Tuesday, August 12, 2014
Time: 4:30 p.m. Eastern time (1:30 p.m. Pacific time)
Dial-In Number: 1-800-329-8877
International: 1-719-457-2083
Conference ID: 8220619

The conference call will be broadcast simultaneously and available for replay via the investor section of the Company's website at www.liquidmetal.com.

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization.

A replay of the call will be available after 7:30 p.m. Eastern time on the same day through August 19, 2014.

        Toll-Free Replay Number:   1-888-203-1112
International Replay Number: 1-719-457-0820
Replay PIN Number: 8220619

About Liquidmetal Technologies

Rancho Santa Margarita, California-based Liquidmetal Technologies, Inc. is the leading developer of bulk alloys and composites that utilize the performance advantages offered by amorphous alloy technology. Amorphous alloys are unique materials that are distinguished by their ability to retain a random structure when they solidify, in contrast to the crystalline atomic structure that forms in ordinary metals and alloys. Liquidmetal Technologies is the first company to produce amorphous alloys in commercially viable bulk form, 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 2013 Annual Report on Form 10-K.

Liquidmetal Technologies  
Balance Sheet
 
June 30, December 31,
  2014     2013  
(Unaudited) (Audited)
ASSETS
 
Current assets:
Cash $ 13,894 $ 2,062
Trade accounts receivable, net of allowance for doubtful accounts 68 215
Prepaid expenses and other current assets   234     412  
Total current assets $ 14,196 $ 2,689
Property and equipment, net 756 249
Patents and trademarks, net 712 764
Other assets   349     401  
Total assets $ 16,013   $ 4,103  
 
LIABILITIES AND STOCKHOLDERS' DEFICIT
 
Current liabilities:
Accounts payable 107 361
Accrued liabilities 696 710
Convertible notes, net of debt discount - -
Embedded conversion feature liabilities on convertible notes   -     -  
Total current liabilities $ 803 $ 1,071
 
Long-term liabilities:
Warrant liabilities 6,792 4,921
Other long-term liabilities   856     856  
Total liabilities $ 8,451 $ 6,848
 
Stockholders' equity (deficit):
Preferred Stock, $0.001 par value;
10,000,000 shares authorized; 0 shares issued and
outstanding at June 30, 2014 and December 31, 2013. - -
Common stock, $0.001 par value; 700,000,000 shares
authorized at June 30, 2014 and December 31, 2013;
462,754,819 and 375,707,190 shares issued and outstanding at June
30, 2014 and December 31, 2013, respectively 463 376
Warrants 18,179 18,179
Additional paid-in capital 199,473 182,832
Accumulated deficit (210,503 ) (204,090 )
Non-controlling interest in subsidiary (50 ) (42 )
   
Total stockholders' equity (deficit) 7,562 (2,745 )
   
Total liabilities and stockholders' equity (deficit) $ 16,013   $ 4,103  
 
Liquidmetal Technologies      
Statement of Income
 

For the Three Months Ended
June 30,

For the Six Months Ended
June 30,

  2014     2013     2014     2013  
 
Revenue
Products $ 121 $ 150 $ 277 $ 265
Licensing and royalties   32     -     36     7  
Total revenue 153 150 313 272
 
Cost of sales   75     111     215     193  
Gross profit 78 39 98 79
 
Operating expenses
Selling, marketing, general and administrative 2,021 1,209 3,872 2,523
Research and development   392     224     726     460  
Total operating expenses   2,413     1,433     4,598     2,983  
Operating loss (2,335 ) (1,394 ) (4,500 ) (2,904 )
 
Change in value of warrants, gain (loss) (145 ) 286 (1,871 ) 796
Change in value of embedded conversion feature
liabilities, gain - 1,378 - 3,056
Debt discount amortization expense (31 ) (2,108 ) (52 ) (6,143 )
Interest expense - (80 ) - (221 )
Interest income   2     1     2     4  
 
Net loss (2,509 ) (1,917 ) (6,421 ) (5,412 )
 
Net loss attributable to non-controlling interest   5     8     8     8  
Net loss and comprehensive loss attributable to
Liquidmetal Technologies shareholders $ (2,504 ) $ (1,909 ) $ (6,413 ) $ (5,404 )
 
 
 
Net loss per common share attributable to Liquidmetal
Technologies shareholders, basic and diluted $ (0.01 ) $ (0.01 ) $ (0.02 ) $ (0.02 )
 
Number of weighted average shares - basic and diluted   449,401,890     335,472,213     418,501,883     309,073,707  

Source: Liquidmetal Technologies, Inc.

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