Business Wire | Aug 10, 2021 04:30PM EDT

Liquidmetal Technologies Reports Second Quarter 2021 Results

Aug. 10, 2021

LAKE FOREST, Calif.--(BUSINESS WIRE)--Aug. 10, 2021--Liquidmetal(r) Technologies, Inc. (OTCQB: LQMT), a leading authority on commercial applications of amorphous alloys, reported results for the quarter ended June 30, 2021.

Management Commentary

"As we close out the 2nd quarter, we look forward to the second half of 2021 and beyond with our continued emphasis on expanding our sales and business development, while reducing costs, to get to profitability," said Tony Chung, CEO. "And with the pandemic in mind, we will prepare and take advantage of the forthcoming opportunities with the resurgence of the global economy."

Q2 2021 Financial Summary

During the second quarter of 2021, the Company generated $243 thousand in revenue through a combination of volume production deliveries, initial part deliveries for new application development initiatives, and royalty revenues under existing contracts.

Cost of goods sold was $154 thousand in Q2 2021 and $35 thousand in Q2 2020. This increase was primarily attributable to an increase in revenue, with a higher amount related to volume production deliveries, resulting in higher gross margin percentages.

Selling, marketing, general and administrative expense was $849 thousand in Q2 2021 and $870 thousand in Q2 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 $38 thousand and $27 thousand in Q2 2021 and Q2 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 June 30, 2021, the Company had $10.9 million in cash and cash equivalents and restricted cash, as well as $17.3 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 June 30, 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) June 30, December 31, 2021 2020

(Unaudited) (Audited)ASSETS Current assets:Cash and cash equivalents $ 10,925 $ 1,514

Restricted cash 5 5

Investments in debt securities- short term 9,631 14,720

Trade accounts receivable, net of allowance for 184 271 doubtful accountsInventory 161 43

Prepaid expenses and other current assets 232 465

Total current assets $ 21,138 $ 17,018

Investments in debt securities- long term 7,632 12,768

Property and equipment, net 8,454 8,614

Patents and trademarks, net 124 158

Other assets 280 251

Total assets $ 37,628 $ 38,809

LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities:Accounts payable 199 205

Accrued liabilities 298 315

Deferred revenue 41 -

Total current liabilities $ 538 $ 520

Long-term liabilitiesOther long-term liabilities 899 899

Total liabilities $ 1,437 $ 1,419

Shareholders' equity:Preferred Stock, $0.001 par value; 10,000,000 shares - - authorized; 0 shares issued and outstanding at June30, 2021 and December 31, 2020, respectivelyCommon stock, $0.001 par value; 1,100,000,000 sharesauthorized; 914,449,957 and 914,449,957 shares 914 914 issued and outstanding at June 30, 2021 and December31, 2020, respectivelyWarrants 18,179 18,179

Additional paid-in capital 287,390 287,183

Accumulated deficit (270,241 ) (268,926 )

Accumulated other comprehensive income 26 116

Non-controlling interest in subsidiary (77 ) (76 )

Total shareholders' equity $ 36,191 $ 37,390

Total liabilities and shareholders' equity $ 37,628 $ 38,809

LIQUIDMETAL TECHNOLOGIES, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF OPERATIONS(in thousands, except share and per share data)(unaudited)For the Three Months Ended June 30,

For the Six Months Ended June 30,

2021

2020

2021

2020

RevenueProducts$

231

$

33

$

294

$

79

Licensing and royalties12

-

21

25

Total revenue$

243

$

33

$

315

$

104

Cost of sales154

35

209

71

Gross profit (loss)$

89

$

(2

)

$

106

$

33

Operating expensesSelling, marketing, general and administrative849

870

1,728

1,857

Research and development38

27

60

56

Gain on disposal of long-lived assets-

(15

)

-

(35

)

Total operating expenses$

887

$

882

$

1,788

$

1,878

Operating loss(798

)

(884

)

(1,682

)

(1,845

)

Lease income132

132

264

220

Interest and investment income41

109

102

236

Loss before income taxes$

(625

)

$

(643

)

$

(1,316

)

$

(1,389

)

Income taxes-

-

-

-

Net loss$

(625

)

$

(643

)

$

(1,316

)

$

(1,389

)

Net loss attributable to non-controlling interest1

-

1

-

Net loss attributable toLiquidmetal Technologies shareholders$

(624

)

$

(643

)

$

(1,315

)

$

(1,389

)

Per common share basic and diluted:Net loss per common share attributable to Liquidmetal Technologies shareholders, basic and diluted$(0.00)$(0.00)$(0.00)$(0.00)Number of weighted average shares - basic and diluted914,449,957

914,449,957

914,449,957

914,449,957

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