RANCHO SANTA MARGARITA, Calif.--(BUSINESS WIRE)--Liquidmetal® Technologies, Inc. (OTCQB: LQMT), the leading developer of amorphous alloys, reported results for its third quarter, ended September 30, 2016.
Significant Events
On October 26, 2016, the Company issued and sold 300,000,000 shares of Company’s common stock for an aggregate purchase price of $55 million, comprised of 200,000,000 shares at a price of $0.15 per share and 100,000,000 shares at a price of $0.25 per share to the Investor party to the Securities Purchase Agreement executed in March 2016. As a result of this closing, the Investor has completed its entire $63.4 million investment in the Company contemplated by the 2016 Purchase Agreement.
The Company will announce a time in the near future to hold a special conference call with investors to go over the recent events as well as provide guidance on the future goals of the Company.
Q3 2016 Financial Summary
In Q3 2016, the Company generated revenues of $154 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 $1.7 million in Q3 2016, as compared to $1.8 million in Q3 2015. Research and development expense was $548 thousand in Q3 2016, compared to $491 thousand in Q3 2015. Cash and restricted cash totaled $6.4 million at September 30, 2016, as compared to $4.7 million at December 31, 2015.
For a more detailed and complete analysis of the Company’s financial results, please refer to the Company’s September 30, 2016 Form 10Q, which it filed earlier today.
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 2015 Annual Report on Form 10-K.
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LIQUIDMETAL TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (in thousands, except par value and share data) |
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| September 30, | December 31, | ||||||||||
| 2016 | 2015 | ||||||||||
| (Unaudited) | (Audited) | ||||||||||
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ASSETS |
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| Current assets: | |||||||||||
| Cash | $ | 6,402 | $ | 2,773 | |||||||
| Restricted cash | 5 | 2,008 | |||||||||
| Trade accounts receivable, net of allowance for doubtful accounts | 17 | 30 | |||||||||
| Inventory | 227 | 83 | |||||||||
| Prepaid expenses and other current assets | 452 | 408 | |||||||||
| Total current assets | $ | 7,103 | $ | 5,302 | |||||||
| Property and equipment, net | 1,134 | 1,370 | |||||||||
| Patents and trademarks, net | 518 | 570 | |||||||||
| Other assets | 36 | 31 | |||||||||
| Total assets | $ | 8,791 | $ | 7,273 | |||||||
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LIABILITIES AND SHAREHOLDERS' EQUITY |
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| Current liabilities: | |||||||||||
| Short-term debt | - | 700 | |||||||||
| Accounts payable | 216 | 250 | |||||||||
| Accrued liabilities | 1,695 | 947 | |||||||||
| Deferred revenue | 13 | 77 | |||||||||
| Warrant liabilities, current | 1,255 | - | |||||||||
| Option liabilities | - | - | |||||||||
| Total current liabilities | $ | 3,179 | $ | 1,974 | |||||||
| Long-term liabilities: | |||||||||||
| Warrant liabilities, long-term | 1,449 | 59 | |||||||||
| Other long-term liabilities | 856 | 856 | |||||||||
| Total liabilities | $ | 5,484 | $ | 2,889 | |||||||
| Shareholders' equity: | |||||||||||
| Preferred Stock, $0.001 par value; 10,000,000 | |||||||||||
| shares authorized; 0 shares issued and outstanding at | |||||||||||
| September 30, 2016 and December 31, 2015, respectively | - | - | |||||||||
| Common stock, $0.001 par value; 1,100,000,000 shares authorized; 582,332,818 | |||||||||||
| and 477,149,485 shares issued and outstanding at September 30, 2016 | |||||||||||
| and December 31, 2015, respectively. | 582 | 477 | |||||||||
| Warrants | 18,179 | 18,179 | |||||||||
| Additional paid-in capital | 216,357 | 203,735 | |||||||||
| Accumulated deficit | (231,743 | ) | (217,945 | ) | |||||||
| Non-controlling interest in subsidiary | (68 | ) | (62 | ) | |||||||
| Total shareholders' equity | 3,307 | 4,384 | |||||||||
| Total liabilities and shareholders' equity | $ | 8,791 | $ | 7,273 | |||||||
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LIQUIDMETAL TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (in thousands, except share and per share data) (unaudited) |
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For the Three Months |
For the Nine Months
Ended September 30, |
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| 2016 | 2015 | 2016 | 2015 | |||||||||||||||||
| Revenue | ||||||||||||||||||||
| Products | $ | 154 | $ | 42 | $ | 329 | $ | 80 | ||||||||||||
| Licensing and royalties | - | - | 27 | 27 | ||||||||||||||||
| Total revenue | 154 | 42 | 356 | 107 | ||||||||||||||||
| Cost of sales | 165 | 160 | 336 | 312 | ||||||||||||||||
| Gross profit (loss) | (11 | ) | (118 | ) | 20 | (205 | ) | |||||||||||||
| Operating expenses | ||||||||||||||||||||
| Selling, marketing, general and administrative | 1,679 | 1,763 | 5,461 | 5,506 | ||||||||||||||||
| Research and development | 548 | 491 | 1,730 | 1,428 | ||||||||||||||||
| Total operating expenses | 2,227 | 2,254 | 7,191 | 6,934 | ||||||||||||||||
| Operating loss | (2,238 | ) | (2,372 | ) | (7,171 | ) | (7,139 | ) | ||||||||||||
| Change in value of warrant liabilities, gain (loss) | 563 | 1,138 | (1,885 | ) | 1,326 | |||||||||||||||
| Change in value of option liabilities, loss | - | - | (2,613 | ) | - | |||||||||||||||
| Loss on contract modification | (2,126 | ) | - | (2,126 | ) | - | ||||||||||||||
| Interest expense | (1 | ) | (1 | ) | (9 | ) | (1 | ) | ||||||||||||
| Interest income | - | 5 | - | 19 | ||||||||||||||||
| Net loss and comprehensive loss | (3,802 | ) | (1,230 | ) | (13,804 | ) | (5,795 | ) | ||||||||||||
| Net loss attributable to non-controlling interest | 2 | 2 | 6 | 6 | ||||||||||||||||
| Net loss and comprehensive loss attributable to | ||||||||||||||||||||
| Liquidmetal Technologies shareholders | $ | (3,800 | ) | $ | (1,228 | ) | $ | (13,798 | ) | $ | (5,789 | ) | ||||||||
| Net loss per common share attributable to Liquidmetal | ||||||||||||||||||||
| Technologies shareholders, basic and diluted | $ | (0.01 | ) | $ | (0.00 | ) | $ | (0.02 | ) | $ | (0.01 | ) | ||||||||
| Number of weighted average shares - basic and diluted | 582,332,818 | 475,816,152 | 558,918,003 | 468,890,226 | ||||||||||||||||
