Liquidmetal Technologies Reports Third Quarter 2015 Results

November 9, 2015 | By Business Wire News

RANCHO SANTA MARGARITA, Calif.

Liquidmetal® Technologies, Inc. (OTCQB: LQMT), the leading developer of amorphous alloys, reported results for the quarter ended September 30, 2015.

Q3 2015 Operational Highlights

Continued strength in new request for quotes (RFQ’s) from potential customers
4 new prototype orders to be produced in our Manufacturing Center of Excellence
Partnership with CoNextions on an innovative new part for the medical industry
ISO 9001 implementation and audit completed – awaiting formal approval

“Our third quarter results demonstrated continued progress toward increasing shipment revenues expected in 2016,” said Tom Steipp, President and CEO. “We are extremely pleased with the results that we have seen from investments made in our sales and marketing team. The inflow of new RFQ’s has been extremely strong, and we are beginning to see demand for prototype parts increase. In particular, we see the emerging partnership with CoNextions as a precursor to growing success in our medical markets.”

Q3 2015 Financial Summary

In Q3 2015, the Company generated revenues of $42 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 in both Q3 2015 and Q3 2014.

Research and development expense was $491 thousand in Q3 2015, compared to $498 thousand in Q3 2014.

Cash totaled $6.4 million, which includes $2.0 million of restricted cash, at September 30, 2015, as compared to $10 million at December 31, 2014.

Conference Call

Liquidmetal Technologies management will hold a conference call later today (November 9, 2015) 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: Monday, November 9, 2015
Time: 4:30 p.m. Eastern time (1:30 p.m. Pacific time)
Dial-In Number: 1-888-632-3382
International: 1-785-424-1677
Conference ID: 2234195

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 16, 2015.

Toll-Free Replay Number: 1-888-203-1112
International Replay Number: 1-719-457-0820
Replay PIN Number: 2234195

About Liquidmetal Technologies

Rancho Santa Margarita, California-based Liquidmetal Technologies, Inc. is the leading developer of bulk alloys 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 2014 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,
				2015			2014
			(Unaudited)			(Audited)
ASSETS

Current assets:
	Cash		$	4,384		$	10,009
	Restricted cash			2,006			–
	Trade accounts receivable, net of allowance for doubtful accounts			20			83
	Inventory			111			–
	Prepaid expenses and other current assets			391			374
		Total current assets	$	6,912		$	10,466
Property and equipment, net				1,468			1,118
Patents and trademarks, net				595			669
Other assets				31			31
		Total assets	$	9,006		$	12,284

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:
	Short-term debt		$	700		$	–
	Accounts payable			193			155
	Accrued liabilities			990			705
	Deferred revenue			22			–
		Total current liabilities	$	1,905		$	860

Long-term liabilities:
	Warrant liabilities			679			2,005
	Other long-term liabilities			856			856
		Total liabilities	$	3,440		$	3,721

Stockholders’ equity:
	Convertible, redeemable Preferred Stock, $0.001 par value;
		10,000,000 shares authorized; 0 shares issued and
		outstanding at September 30, 2015 and December 31, 2014.		–			–
	Common stock, $0.001 par value; 700,000,000 shares
		authorized; 477,149,485 and 464,482,819 shares issued and outstanding
		at September 30, 2015 and December 31, 2014, respectively.		477			464
	Warrants			18,179			18,179
	Additional paid-in capital			203,395			200,610
	Accumulated deficit			(216,425	)		(210,636	)
	Non-controlling interest in subsidiary			(60	)		(54	)

		Total stockholders’ equity		5,566			8,563

		Total liabilities and stockholders’ equity	$	9,006		$	12,284

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,
				2015			2014			2015			2014

Revenue
	Products		$	42		$	97		$	80		$	374
	Licensing and royalties			–			–			27			36
		Total revenue		42			97			107			410

Cost of sales				160			85			312			300
	Gross profit (loss)			(118	)		12			(205	)		110
							–
Operating expenses
	Selling, marketing, general and administrative			1,763			1,847			5,506			5,719
	Research and development			491			498			1,428			1,224
		Total operating expenses		2,254			2,345			6,934			6,943
Operating loss				(2,372	)		(2,335	)		(7,139	)		(6,833	)

	Change in value of warrants, gain (loss)			1,138			1,595			1,326			(276	)
	Debt discount amortization expense			–			(321	)		–			(373	)
	Interest expense			(1	)		–			(1	)		–
	Interest income			5			41			19			43

Net loss				(1,230	)		(1,018	)		(5,795	)		(7,439	)

Net loss attributable to non-controlling interest				2			2			6			10
Net loss and comprehensive loss attributable to
	Liquidmetal Technologies’ stockholders		$	(1,228	)	$	(1,016	)	$	(5,789	)	$	(7,429	)



Net loss per common share attributable to Liquidmetal
	Technologies’ stockholders, basic and diluted		$	(0.00	)	$	(0.00	)	$	(0.01	)	$	(0.02	)

Number of weighted average shares- basic and diluted				475,816,152			464,269,486			468,890,226			433,757,751