Business Wire | May 4, 2021 05:00PM EDT

Liquidmetal Technologies Reports First Quarter 2021 Results

May 04, 2021

LAKE FOREST, Calif.--(BUSINESS WIRE)--May 04, 2021--Liquidmetal(r) 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 SUBSIDIARIESCONSOLIDATED 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 17,213 14,720 term Trade accounts receivable, net of 54 271 allowance for doubtful accounts 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 266 251 assets 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 - 116 (loss) Non-controlling interest in subsidiary (76 ) (76 )

Total shareholders' equity $ 36,690 $ 37,390

Total liabilities and shareholders' $ 38,020 $ 38,809 equity 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

RevenueProducts$

63

$

46

Licensing and royalties9

25

Total revenue72

71

Cost of sales55

36

Gross profit17

35

Operating expensesSelling, marketing, general and administrative879

987

Research and development22

29

Gain on disposal of long-lived assets-

(20

)

Total operating expenses901

996

Operating loss(884

)

(961

)

Lease income132

88

Interest and investment income61

127

Loss before income taxes(691

)

(746

)

Income taxes-

-

Net loss(691

)

(746

)

Net loss attributable to non-controlling interest-

-

Net loss attributable toLiquidmetal Technologies shareholders(691

)

(746

)

Per common share basic and diluted:Net loss per common share attributable to LiquidmetalTechnologies shareholders, basic and diluted$

(0.00

)

$

(0.00

)

Number of weighted average shares - basic and diluted914,449,957

914,449,957

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CONTACT: Company Contacts: Bryce Van Media Relations Liquidmetal Technologies, Inc. 949-635-2107 bryce.van@liquidmetal.com