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Liquidmetal Technologies Reports First Quarter 2017 Results

RANCHO SANTA MARGARITA, Calif.--(BUSINESS WIRE)--May 9, 2017-- Liquidmetal® Technologies, Inc. (OTCQB: LQMT), the leading developer of amorphous alloys and composites, reported results for the quarter ended March 31, 2017.

Management Commentary

“The preparations for the opening of our new 41,000 sq/ft corporate office and manufacturing facility in Lake Forest, CA are running smoothly. We have many initiatives on our plate for 2017, and we look forward to sharing our plans with our investors, customers and partners on our upcoming open house to be announced soon,” said Professor Li, Chairman and CEO at LQMT.

Q1 2017 Financial Summary

In Q1 2017, the Company generated $48 thousand in revenue as it continued to focus on the development and manufacturing 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 $1.7 million in Q1 2017, compared to $2.0 million in Q1 2016. The decrease was primarily due to decreases in employee incentive compensation.

Research and development expense was $392 thousand in Q1 2017, compared to $559 thousand in Q1 2016. The decrease was primarily due to decreases in employee incentive compensation and lower internal project costs due to the completion of biocompatibility studies in Q1 2017.

Cash and restricted cash totaled $48 million at March 31, 2017, as compared to $58.9 million at December 31, 2016. The decrease was primarily attributable to Q1 2017 capital expenditures associated with the continued build-out of the Company’s manufacturing capabilities.

For a more detailed and complete analysis of the Company’s financial results, please refer to the Company’s March 31, 2017 Form 10-Q, which it filed earlier today.

About Liquidmetal Technologies

Rancho Santa Margarita, California-based Liquidmetal Technologies, Inc. is the leading developer of bulk amorphous alloys. Amorphous alloys are unique materials that are distinguished by their ability to be injection molded and die cast into high performance applications for a broad range of markets. 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 2016 Annual Report on Form 10-K.

LIQUIDMETAL TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except par value and share data)
   
March 31, December 31,

2017

2016

(Unaudited) (Audited)

ASSETS

 
Current assets:
Cash $ 47,995 $ 58,896
Restricted cash 5 5
Trade accounts receivable - 95
Inventory 773 390
Prepaid expenses and other current assets   274     312  
Total current assets $ 49,047 $ 59,698
Property and equipment, net 9,562 1,139
Patents and trademarks, net 473 494
Other assets   36     36  
Total assets $ 59,118   $ 61,367  
 

LIABILITIES AND SHAREHOLDERS' EQUITY

 
Current liabilities:
Accounts payable 99 331
Accrued liabilities 587 1,070
Deferred revenue 17 13
Warrant liabilities, current   300     2,224  
Total current liabilities $ 1,003 $ 3,638
 
Long-term liabilities:
Warrant liabilities, long-term 1,846 2,047
Other long-term liabilities   856     856  
Total liabilities $ 3,705 $ 6,541
 
Shareholders' equity:

Preferred Stock, $0.001 par value; 10,000,000 shares authorized; 0 shares issued and outstanding at March 31, 2017 and December 31, 2016, respectively

- -

Common stock, $0.001 par value; 1,100,000,000 shares authorized; 891,979,085 and 886,090,164 shares issued and outstanding at March 31, 2017 and December 31, 2016, respectively.

892 886
Warrants 18,179 18,179
Additional paid-in capital 274,046 272,520
Accumulated deficit (237,632 ) (236,689 )
Non-controlling interest in subsidiary (72 ) (70 )
   
Total shareholders' equity 55,413 54,826
   
Total liabilities and shareholders' equity $ 59,118   $ 61,367  
 
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 March 31,

2017

2016

 
Revenue
Products $ 48 $ 165
Licensing and royalties   -     3  
Total revenue 48 168
 
Cost of sales   62     158  
Gross profit (loss) (14 ) 10
 
Operating expenses
Selling, marketing, general and administrative 1,703 2,017
Research and development   392     559  
Total operating expenses   2,095     2,576  
Operating loss (2,109 ) (2,566 )
 
Change in value of warrant liabilities, gain (loss) 1,150 (1,569 )
Change in value of option liabilities, (loss) - (5,039 )
Interest expense - (4 )
Interest income   14     -  
 
Net loss and comprehensive loss (945 ) (9,178 )
 
Net loss attributable to non-controlling interest   2     2  

Net loss and comprehensive loss attributable to Liquidmetal Technologies shareholders

$ (943 ) $ (9,176 )
 
 

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

$ (0.00 ) $ (0.02 )
 
Number of weighted average shares - basic and diluted   888,053,138     512,149,485  

Source: Liquidmetal Technologies, Inc.

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