Liquidmetal Technologies, Inc. (OTCQB: LQMT), the leading developer of amorphous alloys and composites, reported results for the fiscal year ended December 31, 2018.
During 2018, we validated our first multi-cavity production molds for our amorphous and metal injection molding operations, resulting in production orders, said Bruce Bromage, the Companys Chief Operating Officer. In addition, we have recently received our first amorphous production tooling order for a higher volume medical device application with validation and acceptance protocols in process. We are also working with our customer to develop the next generation of this application, demonstrating their commitment to our technology and to Liquidmetal as a trusted supplier. We are focused on bringing more applications into our production pipeline.
Dr. Bromage continued, Our building power upgrade is near completion, allowing us to further expand our manufacturing footprint. On the research and development front, we continue to learn more about the unique capabilities of our materials and production methods, especially for consumer and medical applications.
2018 Financial Summary
In 2018, the Company generated $532 thousand in revenue through completion of prototyping, small scale production runs, and the production tooling portion of orders for both our AMM and MIM platforms. During 2018, we finished validation procedures, and began producing routine volume part runs, for the Companys first eight-cavity mold, highlighting our development efforts and continued emergence as a volume manufacturer.
Cost of goods sold was $1,164 thousand in 2018 and $696 thousand in 2017. This increase was primarily attributable to an increase in book markdowns of raw materials inventory, which was slightly offset by improved production throughput.
Selling, marketing, general and administrative expense was $5.9 million in 2018 and $6.3 million in 2017. The decrease is primarily due slightly lower costs associated with employee compensation, inclusive of non-cash stock-based compensation.
Research and development increased to $2.4 million in 2018, from $2.0 million in 2017. The increase is mainly due to increases in internal projects related alloy and molding machine development.
Cash and restricted cash totaled $35.2 million at December 31, 2018, as compared to $41.3 million at December 31, 2017.
For a more detailed and complete analysis of the Companys financial results, please refer to the Companys December 31, 2018 Form 10K, which was filed earlier today.
About Liquidmetal Technologies
Lake Forest, California-based Liquidmetal Technologies, Inc. is the leading producer 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.
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 2018 Annual Report on Form 10-K.
| LIQUIDMETAL TECHNOLOGIES, INC. AND SUBSIDIARIES|
CONSOLIDATED BALANCE SHEETS
(in thousands, except par value and share data)
|December 31,||December 31,|
|Cash and cash equivalents||$||35,229||$||41,309|
|Trade accounts receivable, net of allowance for doubtful accounts||120||157|
|Prepaid expenses and other current assets||363||326|
|Total current assets||$||35,748||$||42,188|
|Property and equipment, net||11,767||12,465|
|Patents and trademarks, net||322||408|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|Warrant liabilities, current||–||–|
|Total current liabilities||$||554||$||464|
|Warrant liabilities, long-term||925||2,192|
|Other long-term liabilities||856||856|
Preferred Stock, $0.001 par value; 10,000,000 shares authorized; 0 shares issued and outstanding at December 31, 2018 and December 31, 2017, respective
Common stock, $0.001 par value; 1,100,000,000 shares authorized; 914,206,832 and 908,768,116 shares issued and outstanding at December 31, 2018 and December 31, 2017, respectively
|Additional paid-in capital||279,306||277,924|
|Non-controlling interest in subsidiary||(74||)||(73||)|
|Total shareholders’ equity||$||45,516||$||51,563|
|Total liabilities and shareholders’ equity||$||47,851||$||55,075|
| LIQUIDMETAL TECHNOLOGIES, INC. AND SUBSIDIARIES|
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(in thousands, except share and per share data)
Years Ended December 31,
|Licensing and royalties||48||66||27|
|Cost of sales||1,164||696||553|
|Selling, marketing, general and administrative||5,899||6,265||7,472|
|Research and development||2,429||1,962||2,342|
|Total operating expenses||8,328||8,227||9,814|
|Change in value of warrants, gain (loss)||1,267||(143||)||(4,117||)|
|Change in value of option liabilities, loss||–||–||(2,613||)|
|Loss on contract modification||–||–||(2,126||)|
|Loss before income taxes||(7,434||)||(8,690||)||(18,752||)|
|Net loss and comprehensive loss||(7,434||)||(8,690||)||(18,752||)|
|Net loss attributable to non-controlling interest||1||3||8|
Net loss and comprehensive loss attributable to Liquidmetal Technologies shareholders
|Per common share basic and diluted:|
Net loss per common share attributable to Liquidmetal Technologies shareholders, basic
Net loss per common share attributable to Liquidmetal Technologies shareholders, diluted
|Number of weighted average shares – basic||910,546,059||897,273,890||640,157,919|
|Number of weighted average shares – diluted||910,546,059||897,273,890||640,157,919|