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Liquidmetal Technologies Reports Third Quarter 2021 Results

LAKE FOREST, Calif.--(BUSINESS WIRE)--Nov. 15, 2021-- Liquidmetal® Technologies, Inc. (OTCQB: LQMT), a leading authority on commercial applications of amorphous alloys, reported results for the quarter ended September 30, 2021.

Management Commentary

“During the third quarter, we transitioned over to a new management team, implemented reductions to our overhead expenses and renewed our focus on growing the business for the long term,” said Tony Chung, CEO. “I look forward to providing our investors with an update on the business during our 2021 year-end conference call to be scheduled in conjunction with the filing of our annual 10-K.”

Q3 2021 Financial Summary

During the third quarter of 2021, the Company generated $406 thousand in revenue through a combination of volume production deliveries and initial part deliveries for new application development initiatives under existing contracts.

Cost of goods sold was $319 thousand in Q3 2021 and $171 thousand in Q3 2020. This increase was primarily attributable to an increase in revenue, with a higher amount related to volume production deliveries, resulting in higher gross margin percentages.

Selling, marketing, general and administrative expense was $1.6 million in Q3 2021 and $1.1 million in Q3 2020. The increase in expenses was primarily attributable to higher stock compensation expense for stock options issued to the Company’s new CEO and modifications to stock options as well as accruals made pursuant to employee separation agreements.

Research and development expenses were $14 thousand and $30 thousand in Q3 2021 and Q3 2020, respectively. Expenses continue to remain low due to a significant decrease in internal development initiatives, in accordance with the 2019 Restructuring Plan.

As of September 30, 2021, the Company had $5.2 million in cash and cash equivalents, as well as $22.0 million in investments in debt securities. Those readily available sources of liquidity are accessible to advance the Company’s existing operations and strategy for long term growth.

For a more detailed and complete analysis of the Company’s financial results, please refer to the Company’s September 30, 2021 Form 10-Q, which was filed earlier today.

About Liquidmetal Technologies

Lake Forest, California-based Liquidmetal Technologies, Inc. is a leading authority and developer of parts made with amorphous alloys, also known scientifically as Bulk Metallic Glasses or BMGs. The non-crystalline atomic structure of these materials imparts unique performance properties, including the ability to injection-mold with micron-level precision, lustrous finishes, high strength, hardness and corrosion resistance, and remarkable elasticity. Liquidmetal Technologies is the first company to produce amorphous alloy parts commercially, 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 2020 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,

2021

2020

(Unaudited)

(Audited)

ASSETS
 
Current assets:
Cash and cash equivalents

$

5,233

 

$

1,514

 

Restricted cash

 

5

 

 

5

 

Investments in debt securities- short term

 

11,631

 

 

14,720

 

Trade accounts receivable, net of allowance for doubtful accounts

 

353

 

 

271

 

Inventory

 

22

 

 

43

 

Prepaid expenses and other current assets

 

597

 

 

465

 

Total current assets

$

17,841

 

$

17,018

 

Investments in debt securities- long term

 

10,398

 

 

12,768

 

Property and equipment, net

 

8,375

 

 

8,614

 

Patents and trademarks, net

 

112

 

 

158

 

Other assets

 

293

 

 

251

 

Total assets

$

37,019

 

$

38,809

 

 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
Current liabilities:
Accounts payable

$

194

 

$

205

 

Accrued liabilities

 

917

 

 

315

 

Deferred revenue

 

41

 

 

-

 

Total current liabilities

$

1,152

 

$

520

 

 
Long-term liabilities
Other long-term liabilities

 

899

 

 

899

 

Total liabilities

$

2,051

 

$

1,419

 

 
Shareholders' equity:
Preferred Stock, $0.001 par value; 10,000,000 shares authorized; 0 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively

 

-

 

 

-

 

Common stock, $0.001 par value; 1,100,000,000 shares authorized; 914,449,957 and 914,449,957 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively

 

914

 

 

914

 

Warrants

 

18,179

 

 

18,179

 

Additional paid-in capital

 

287,585

 

 

287,183

 

Accumulated deficit

 

(271,644

)

 

(268,926

)

Accumulated other comprehensive income

 

11

 

 

116

 

Non-controlling interest in subsidiary

 

(77

)

 

(76

)

Total shareholders' equity

$

34,968

 

$

37,390

 

 
Total liabilities and shareholders' equity

$

37,019

 

$

38,809

 

LIQUIDMETAL TECHNOLOGIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except share and per share data)

(unaudited)

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

2021

 

2020

 

2021

 

2020

 
Revenue
Products

$

406

 

$

288

 

$

700

 

$

367

 

Licensing and royalties

 

-

 

 

39

 

 

21

 

 

64

 

Total revenue

$

406

 

$

327

 

$

721

 

$

431

 

 
Cost of sales

 

319

 

 

171

 

 

528

 

 

242

 

Gross profit

$

87

 

$

156

 

$

193

 

$

189

 

 
Operating expenses
Selling, marketing, general and administrative

 

1,643

 

 

1,096

 

 

3,372

 

 

2,953

 

Research and development

 

14

 

 

30

 

 

74

 

 

86

 

Gain on disposal of long-lived assets

 

-

 

 

-

 

 

-

 

 

(35

)

Total operating expenses

$

1,657

 

$

1,126

 

$

3,446

 

$

3,004

 

Operating loss

 

(1,570

)

 

(970

)

 

(3,253

)

 

(2,815

)

 
Lease income

 

132

 

 

132

 

 

396

 

 

352

 

Interest and investment income

 

35

 

 

61

 

 

138

 

 

297

 

 
Loss before income taxes

$

(1,403

)

$

(777

)

$

(2,719

)

$

(2,166

)

 
Income taxes

 

-

 

 

-

 

 

-

 

 

-

 

 
Net loss

$

(1,403

)

$

(777

)

$

(2,719

)

$

(2,166

)

 
Net loss attributable to non-controlling interest

 

-

 

 

1

 

 

1

 

 

1

 

Net loss attributable to Liquidmetal Technologies shareholders

$

(1,403

)

$

(776

)

$

(2,718

)

$

(2,165

)

 
 
Per common share basic and diluted:
 
Net loss per common share attributable to Liquidmetal Technologies shareholders, basic and diluted

$

(0.00

)

$

(0.00

)

$

(0.00

)

$

(0.00

)

 
Number of weighted average shares - basic and diluted

 

914,449,957

 

 

914,449,957

 

 

914,449,957

 

 

914,449,957

 

 

Isaac Bresnick
Liquidmetal Technologies, Inc.
949-635-2123
isaac.bresnick@liquidmetal.com

Source: Liquidmetal Technologies, Inc.