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Liquidmetal Technologies Reports Third Quarter 2013 Results

Prototype Shipments Continue to Reach Customers in Targeted Industries

RANCHO SANTA MARGARITA, Calif.--(BUSINESS WIRE)--Nov. 8, 2013-- Liquidmetal® Technologies, Inc. (OTCQB: LQMT), the leading developer of amorphous alloys and composites, reported results for the quarter ended September 30, 2013.

Q3 2013 Operational Highlights

During the third quarter, Liquidmetal continued to deliver prototype shipments to new customers and made further advancements on commercialized production processes.

  • Prototype shipments in the aerospace and defense industry represented a positive step in the future commercialization of our product. The success story in this case was the canard for Lockheed Martin’s EAPS missile. The canard is scheduled to be part of a live flight test early next year.
  • The announcement of the availability of a standard Liquidmetal injection molding system from ENGEL, one of the world’s leading suppliers of injection molding equipment. These machines have already been quoted, have a standard availability, and can be installed and supported anywhere in the world.

Management Commentary

“During the third quarter, we shipped 3 prototypes into very exciting markets. We are also pleased with the subsequent closing of our Common Stock Purchase Agreement that will allow us flexibility in the funding of our on-going operations through discretionary issuances of our common stock” said Tom Steipp, President and CEO of Liquidmetal Technologies.

Q3 2013 Financial Summary

In Q3 2013, the company generated revenues of $456 thousand as it focused on the development of prototype parts for its customers.

Selling, marketing, general and administrative expense was $1.2 million compared to $1.4 million in Q3 2012. The decrease was primarily due to reductions in external consultant and legal expenses off-set by additional headcount to support the Company’s sales and business development efforts.

Research and development expense was $368,000 compared to $217,000 in Q3 2012.

Cash totaled $3.0 million at September 30, 2013, as compared to $7.2 million at December 31, 2012.

Conference Call

Liquidmetal Technologies management will hold a conference call later today (November 8, 2013) 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: Friday November 8, 2013
Time: 4:30 p.m. Eastern time (1:30 p.m. Pacific time)
Dial-In Number: 1-888-438-5491
International: 1-719-325-2472
Conference ID: 1752720

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 November 15th, 2013.

Toll-Free Replay Number: 1-888-203-1112
International Replay Number: 1-719-457-0820
Replay PIN Number: 1752720

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 2012 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,
  2013     2012  
(Unaudited) (Audited)
ASSETS
 
Current assets:
Cash $ 3,023 $ 7,162
Trade accounts receivable, net of allowance for doubtful accounts of $3 and $11, respectively 431 64
Prepaid expenses and other current assets   548     689  
Total current assets $ 4,002 $ 7,915
Property and equipment, net 265 161
Patents and trademarks, net 792 869
Other assets   28     28  
Total assets $ 5,087   $ 8,973  
 
LIABILITIES AND SHAREHOLDERS' DEFICIT
 
Current liabilities:
Accounts payable 243 154
Accrued liabilities 704 248
Accrued dividends - 222
Convertible notes, net of debt discount of $0 and $4,635, respectively - 2,365
Embedded conversion feature liabilities on convertible notes   -     3,934  
Total current liabilities $ 947 $ 6,923
 
Long-term liabilities:
Warrant liabilities 4,481 2,766
Other long-term liabilities   856     856  
Total liabilities $ 6,284 $ 10,545
 
Shareholders' deficit:
Convertible, redeemable Series A Preferred Stock, $0.001 par value;
10,000,000 shares authorized; 0 and 506,936 shares issued and
outstanding at September 30, 2013 and December 31, 2012, respectively - -
Common stock, $0.001 par value; 500,000,000 shares and 400,000,000
authorized at September 30, 2013 and December 31, 2012, respectively;
373,040,523 and 242,074,324 shares issued and outstanding at September
30, 2013 and December 31, 2012, respectively 373 242
Warrants 18,179 18,179
Additional paid-in capital 182,304 169,891
Accumulated deficit (202,013 ) (189,884 )
Non-controlling interest in subsidiary (40 ) -
   
Total shareholders' deficit (1,197 ) (1,572 )
   
Total liabilities and shareholders' deficit $ 5,087   $ 8,973  
 
Working Capital (Deficit): 3,055 992
 
- -
 

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 September 30, For the Nine Months Ended September 30,
  2013       2012     2013       2012  
 
Revenue
Products $ 456 $ 80 $ 721 $ 471
Licensing and royalties   -     27     7     46  
Total revenue 456 107 728 517
 
Cost of sales   396     73     589     256  
Gross profit 60 34 139 261
 
Operating expenses
Selling, marketing, general and administrative 1,213 1,372 3,735 3,338
Research and development 368 217 829 616
Manufacturing contract costs   -     -     -     6,300  
Total operating expenses   1,581     1,589     4,564     10,254  
Operating loss (1,521 ) (1,555 ) (4,425 ) (9,993 )
 
Change in value of warrants, gain (loss) (2,511 ) 4,184 (1,715 ) 4,010
Change in value of embedded conversion feature
liabilities, gain (loss) (2,435 ) 2,785 621 2,785
Debt discount amortization expense (361 ) (6,247 ) (6,504 ) (6,247 )
Financing costs - - - (1,355 )
Interest expense (21 ) (240 ) (242 ) (258 )
Interest income 1 10 5 18
Gain on extinguishment of debt (Note 7)   91     -     91     -  
 
Net loss (6,757 ) (1,063 ) (12,169 ) (11,040 )
 
Net loss attributable to non-controlling interest   32     -     40     -  
Net loss and comprehensive loss attributable to
Liquidmetal Technologies shareholders $ (6,725 ) $ (1,063 ) $ (12,129 ) $ (11,040 )
 
 
 
Net loss per common share attributable to Liquidmetal
Technologies shareholders, basic and diluted $ (0.02 ) $ (0.01 ) $ (0.04 ) $ (0.06 )
 
Number of weighted average shares - basic and diluted   372,840,523     195,275,681     330,329,312     173,544,833  

Source: Liquidmetal Technologies, Inc.

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