Liquidmetal Technologies Reports Third Quarter 2014 Results

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

Q3 2014 Operational Highlights

During the third quarter of 2014, the Company opened its Manufacturing Center of Excellence, which encompasses a fully functional, automated production cell to make Liquidmetal parts. The Manufacturing Center of Excellence represents a significant investment by the Company and will be the core of the Company’s manufacturing efforts during the coming years.

Management Commentary

“We completed training for our Manufacturing Sales Representatives, hosted customers, and conducted our 2014 Shareholder meeting in the newly opened Manufacturing Center of Excellence,” commented Tom Steipp, CEO. “We also accepted our first order for a prototype to be completely produced in our own facility, representing significant progress in our transition to a fully functional manufacturing facility.”

Q3 2014 Financial Summary

In Q3 2014, the company generated revenues of $97 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 $1.8 million compared to $1.2 million in Q3 2013. The increase was primarily due to additional compensation expenses associated with new personnel to support our sales and marketing efforts.

Research and development expense was $498,000 compared to $368,000 in Q3 2013.

Cash totaled $11.9 million at September 30, 2014, as compared to $2.1 million at December 31, 2013.

Conference Call

Liquidmetal Technologies management will hold a conference call later today (November 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: Wednesday, November 12, 2014
Time: 4:30 p.m. Eastern time (1:30 p.m. Pacific time)
Dial-In Number: 1-800-533-7954
International: 1-785-830-1924
Conference ID: 1822895

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 19, 2014.

Toll-Free Replay Number: 1-888-203-1112
International Replay Number: 1-719-457-0820
Replay PIN Number: 1822895

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

	September 30,			December 31,
	2014			2013
	(Unaudited)			(Audited)
ASSETS

Current assets:
Cash	$	11,902		$	2,062
Trade accounts receivable, net of allowance for doubtful accounts		63			215
Prepaid expenses and other current assets		421			412
Total current assets	$	12,386		$	2,689
Property and equipment, net		1,101			249
Patents and trademarks, net		695			764
Other assets		28			401
Total assets	$	14,210		$	4,103

LIABILITIES AND STOCKHOLDERS' DEFICIT

Current liabilities:
Accounts payable		275			361
Accrued liabilities		689			710
Deferred revenue		60			-
Convertible notes, net of debt discount		-			-
Embedded conversion feature liabilities on convertible notes		-			-
Total current liabilities	$	1,024		$	1,071

Long-term liabilities:
Warrant liabilities		4,981			4,921
Other long-term liabilities		856			856
Total liabilities	$	6,861		$	6,848

Stockholders' equity (deficit):
Preferred Stock, $0.001 par value; 10,000,000 shares authorized; 0 shares issued and outstanding at September 30, 2014 and December 31, 2013.		-			-
Common stock, $0.001 par value; 700,000,000 shares authorized at September 30, 2014 and December 31, 2013; 464,482,819 and 375,707,190 shares issued and outstanding at September 30, 2014 and December 31, 2013, respectively		464			376
Warrants		18,179			18,179
Additional paid-in capital		200,277			182,832
Accumulated deficit		(211,519	)		(204,090	)
Non-controlling interest in subsidiary		(52	)		(42	)

Total stockholders' equity (deficit)		7,349			(2,745	)

Total liabilities and stockholders' equity (deficit)	$	14,210		$	4,103

Working Capital (Deficit):		11,362			1,618


Liquidmetal Technologies
Statement of Income

	For the Three Months						For the Nine Months
	Ended September 30,						Ended September 30,
	2014			2013			2014			2013

Revenue
Products	$	97		$	456		$	374		$	721
Licensing and royalties		-			-			36			7
Total revenue		97			456			410			728

Cost of sales		85			396			300			589
Gross profit		12			60			110			139

Operating expenses
Selling, marketing, general and administrative		1,847			1,213			5,719			3,735
Research and development		498			368			1,224			829
Total operating expenses		2,345			1,581			6,943			4,564
Operating loss		(2,333	)		(1,521	)		(6,833	)		(4,425	)

Change in value of warrants, gain (loss)		1,595			(2,511	)		(276	)		(1,715	)
Change in value of embedded conversion feature liabilities, gain (loss)		-			(2,435	)		-			621
Debt discount amortization expense		(321	)		(361	)		(373	)		(6,504	)
Interest expense		-			(21	)		-			(242	)
Interest and other income		41			1			43			5
Gain on extinguishment of debt (Note 7)		-			91			-			91

Net loss		(1,018	)		(6,757	)		(7,439	)		(12,169	)

Net loss attributable to non-controlling interest		2			32			10			40
Net loss and comprehensive loss attributable to Liquidmetal Technologies shareholders	$	(1,016	)	$	(6,725	)	$	(7,429	)	$	(12,129	)

Net loss per common share attributable to Liquidmetal Technologies shareholders, basic and diluted	$	(0.00	)	$	(0.02	)	$	(0.02	)	$	(0.04	)

Number of weighted average shares - basic and diluted		464,269,486			372,840,523			433,757,751			330,329,312

Source: Liquidmetal Technologies, Inc.

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

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