Liquidmetal Technologies Reports First Quarter 2021 Results

Liquidmetal Technologies, Inc. (OTCQB: LQMT), a leading authority on commercial applications of amorphous alloys, reported results for the quarter ended March 31, 2021.

Management Commentary

Our first quarter 2021 results reflect the completion of the first full year under our restructured operating strategy. During the first quarter, we marked the 100,000th part delivered from our contract manufacturer to support our on-going product development efforts and providing parts to fill customer supply chains. We continue to attract new customers and are working closely with a range of customers from medical device and consumer markets to prototype and evaluate novel part designs for suitability in volume production.

Q1 2021 Financial Summary

During the first quarter of 2021, the Company generated $72 thousand in revenue through a combination of initial part deliveries for new application development initiatives and royalty revenues under existing contracts.

Cost of goods sold was $55 thousand in Q1 2021 and $36 thousand in Q1 2020. This increase was primarily attributable to pricing variations for application development projects from our contract manufacturer.

Selling, marketing, general and administrative expense was $0.9 million in Q1 2021 and $1.0 million in Q1 2020. The decrease in expenses was attributable to overall lower costs for employee compensation due to continued headcount reductions associated with the 2019 Restructuring Plan.

Research and development expenses were $22 thousand and $29 thousand in Q1 2021 and Q1 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 March 31, 2021, the Company had $1.2 million in cash and cash equivalents and restricted cash, as well as $27.3 million in investments in debt securities. Those readily available sources of liquidity are accessible to advance the Company’s existing strategy, and/or the pursuit of an alternative strategy.

For a more detailed and complete analysis of the Company’s financial results, please refer to the Company’s March 31, 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)
					March 31,				December 31,
					2021				2020
					(Unaudited)				(Audited)
ASSETS
Current assets:
		Cash and cash equivalents			$	1,229			$	1,514
		Restricted cash				5				5
		Investments in debt securities- short term				17,213				14,720
		Trade accounts receivable, net of allowance for doubtful accounts				54				271
		Inventory				147				43
		Prepaid expenses and other current assets				376				465
			Total current assets		$	19,024			$	17,018
Investments in debt securities- long term						10,057				12,768
Property and equipment, net						8,534				8,614
Patents and trademarks, net						139				158
Other assets						266				251
			Total assets		$	38,020			$	38,809
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
		Accounts payable				91				205
		Accrued liabilities				299				315
		Deferred revenue				41				-
			Total current liabilities		$	431			$	520
Long-term liabilities
		Other long-term liabilities				899				899
			Total liabilities		$	1,330			$	1,419
Shareholders' equity:
		Preferred Stock, $0.001 par value; 10,000,000
			shares authorized; 0 shares issued and outstanding at
			March 31, 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 March 31, 2021
			and December 31, 2020, respectively			914				914
		Warrants				18,179				18,179
		Additional paid-in capital				287,290				287,183
		Accumulated deficit				(269,617	)			(268,926	)
		Accumulated other comprehensive income (loss)				-				116
		Non-controlling interest in subsidiary				(76	)			(76	)
			Total shareholders' equity		$	36,690			$	37,390
			Total liabilities and shareholders' equity		$	38,020			$	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 March 31,
					2021				2020
Revenue
	Products				$	63			$	46
	Licensing and royalties					9				25
		Total revenue				72				71
Cost of sales						55				36
	Gross profit					17				35
Operating expenses
	Selling, marketing, general and administrative					879				987
	Research and development					22				29
	Gain on disposal of long-lived assets					-				(20	)
		Total operating expenses				901				996
Operating loss						(884	)			(961	)
	Lease income					132				88
	Interest and investment income					61				127
Loss before income taxes						(691	)			(746	)
	Income taxes					-				-
Net loss						(691	)			(746	)
	Net loss attributable to non-controlling interest					-				-
Net loss attributable to
	Liquidmetal Technologies shareholders					(691	)			(746	)
Per common share basic and diluted:
Net loss per common share attributable to Liquidmetal
	Technologies shareholders, basic and diluted				$	(0.00	)		$	(0.00	)
Number of weighted average shares - basic and diluted						914,449,957				914,449,957

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20210504006275/en/