Liquidmetal Technologies Reports Second Quarter 2021 Results

Rhea-AI Summary

Liquidmetal Technologies, Inc. (OTCQB: LQMT) reported Q2 2021 results, generating $243 thousand in revenue, a mix of production and royalty revenues. Their cost of goods sold increased to $154 thousand, linked to higher revenue. Operating expenses decreased to $849 thousand, down from $870 thousand year-over-year, due to reduced employee compensation from prior restructuring. As of June 30, 2021, the company has $10.9 million in cash and $17.3 million in debt securities, providing a solid liquidity position for future strategies.

Positive

• Generated $243 thousand in revenue in Q2 2021, marking a stable production flow.
• Reduced selling, marketing, general and administrative expenses to $849 thousand, reflecting cost management efforts.
• Maintained a strong liquidity position with $10.9 million in cash and $17.3 million in debt securities.

Negative

• Cost of goods sold increased to $154 thousand from $35 thousand year-over-year, indicating rising production costs.

Liquidmetal® 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 SUBSIDIARIES CONSOLIDATED 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 doubtful accounts		184				271
Inventory		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 liabilities
Other 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 June 30, 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 June 30, 2021 and December 31, 2020, respectively		914				914
Warrants		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 SUBSIDIARIES CONSOLIDATED 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
Revenue
Products		$	231			$	33			$	294			$	79
Licensing and royalties			12				-				21				25
Total revenue		$	243			$	33			$	315			$	104
Cost of sales			154				35				209				71
Gross profit (loss)		$	89			$	(2	)		$	106			$	33
Operating expenses
Selling, marketing, general and administrative			849				870				1,728				1,857
Research and development			38				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 income			132				132				264				220
Interest and investment income			41				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 interest			1				-				1				-
Net loss attributable to Liquidmetal 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 diluted			914,449,957				914,449,957				914,449,957				914,449,957

 

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FAQ

What were the Q2 2021 revenue figures for LQMT?

Liquidmetal Technologies reported $243 thousand in revenue for Q2 2021.

How did LQMT's operating expenses change in Q2 2021?

Operating expenses decreased to $849 thousand in Q2 2021, down from $870 thousand in Q2 2020.

What is LQMT's cash position as of June 30, 2021?

As of June 30, 2021, Liquidmetal Technologies had $10.9 million in cash and $17.3 million in investments in debt securities.

What caused the increase in cost of goods sold for LQMT in Q2 2021?

The increase in cost of goods sold to $154 thousand was primarily due to higher revenue from volume production deliveries.