LQMT Liquidmetal Technologies Inc (QB)

Liquidmetal® Technologies, Inc. (OTCQB: LQMT), the leading developer of amorphous alloys and composites, reported results for the fiscal year ended December 31, 2013.

Q4 2013 Operational Highlights

• In 2013, 18 prototype shipments were delivered to customers in the aerospace/defense, medical and other industries, which was up 80% from 2012.
• During Q4, the Company increased the authorization for available shares from 500M to 700M and secured a $20 million equity line of credit under a common stock purchase agreement. Utilizing this equity line facility, the Company has raised $3M during Q1 2014.
• During Q4, the company announced the commercial availability of our first non-beryllium based alloy, LM 105. This offers, for the first time, customers and licensees access to the same great material qualities of earlier alloys, without the special handling precautions necessary for beryllium containing materials.
• At year end, the company’s IP portfolio included 53 owned or licensed U.S. patents, with an additional 54 patent applications pending. Its patent applications relate to the composition, processing, and application of Liquidmetal alloys.
• We have appointed Paul Hauck as VP of World-Wide Sales and Support effective March 3, 2014. Paul comes to Liquidmetal with a 30-year background in the field of powder metallurgy, including 27 years in Metal Injection Molding (MIM). Paul has been behind the development and growth of MIM start-ups and was a 2013 Distinguished Service to Powder Metallurgy award recipient. He also served 3 terms as the Metal Injection Molding Association President and served 3 terms on the Metal Powder Industries Federation, Board of Governors.

Management Commentary

“2013 was most noteworthy in that we saw the solidification of our Certified Liquidmetal Partners program and the commercial availability of a standard injection molding machine from Engel and both beryllium and non-beryllium alloys from Materion,” said Tom Steipp, President and CEO. “These events set the stage for our attracting a top industry sales and support executive in Paul Hauck, who will now lead the sales and marketing activities as we push beyond the prototype phases into full production of customer parts.”

Fiscal Year 2013 Financial Summary

In 2013, the company generated $1 million in revenue and continued to focus on penetrating target applications and customers to sell prototype parts.

Selling, marketing, general and administrative expense was $5.2 million compared to $4.9 million in 2012. The increase was primarily due to additional headcount to support the company’s sales and business development efforts to further penetrate its existing customer base.

Research and development expense was $1.2 million compared to $0.9 million in 2012. The increase from the prior year was mainly due to additional company research during 2013, inclusive of testing programs related to the company’s golf subsidiary.

Total operating expenses were $6.3 million compared to $12.1 million in 2012. The decrease was primarily due to a one-time, non-cash expense of $6.3 million for the discount pricing Visser Precision Cast received under its master transaction agreement in June 2012.

Cash totaled $2.1 million at December 31, 2013, as compared to $3.0 million at the end of the third quarter.

Conference Call

Liquidmetal Technologies management will hold a conference call later today (March 5, 2014) to discuss these results. The Company’s President and CEO Tom Steipp and CFO Tony Chung will host the call starting at 4:30 p.m. Eastern time. A question and answer session will follow management’s presentation.

Date: Wednesday, March 5, 2014Time: 4:30 p.m. Eastern time (1:30 p.m. Pacific time)Dial-In Number: 1-888-430-8694International: 1-719-325-2491Conference ID: 3539605

The conference call will be broadcast simultaneously and available for replay via the investor section of the Company's website at www.liquidmetal.com.

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization.

A replay of the call will be available after 7:30 p.m. Eastern time on the same day through March 12th, 2014.

Toll-Free Replay Number: 1-888-203-1112International Replay Number: 1-719-457-0820Replay PIN Number: 3539605

About Liquidmetal Technologies

Rancho Santa Margarita, California-based Liquidmetal Technologies, Inc. is the leading developer of bulk alloys and composites 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 2012 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,

2013

2012

 

ASSETS

  Current assets: Cash $ 2,062 $ 7,162 Trade accounts receivable, net of allowance for doubtful accounts of $0 and $11 215 64 Related party notes receivable - - Prepaid expenses and other current assets   412     689   Total current assets $ 2,689 $ 7,915 Property and equipment, net 249 161 Patents and trademarks, net 764 869 Other assets   401     28   Total assets $ 4,103   $ 8,973    

LIABILITIES AND SHAREHOLDERS' DEFICIT

  Current liabilities: Accounts payable 361 154 Accrued liabilities 710 248 Accrued dividends - 222 Short-term debt - - Convertible note, net of debt discount - 2,365 Embedded conversion feature liability   -     3,934   Total current liabilities $ 1,071 $ 6,923   Long-term liabilities Warrant liabilities 4,921 2,766 Other long-term liabilities   856     856   Total liabilities $ 6,848 $ 10,545   Shareholders' deficit: Convertible, redeemable Series A Preferred Stock, $0.001 par value; 10,000,000 shares authorized; 0 and 506,936 shares issued and outstanding at December 31, 2013 and December 31, 2012, respectively - - Common stock, $0.001 par value; 700,000,000 shares authorized; 375,707,190 and 242,074,324 shares issued and outstanding at December 31, 2013 and December 31, 2012, respectively 376 242 Warrants 18,179 18,179 Additional paid-in capital 182,832 169,891 Accumulated deficit (204,090 ) (189,884 ) Non-controlling interest in subsidiary   (42 )   -   Total shareholders' deficit $ (2,745 ) $ (1,572 )     Total liabilities and shareholders' deficit $ 4,103   $ 8,973       LIQUIDMETAL TECHNOLOGIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS and COMPREHENSIVE LOSS (in thousands, except share and per share data)      

Years Ended December 31,

2013

 

2012

  Revenue Products $ 1,007 $ 591 Licensing and royalties   19     59   Total revenue 1,026 650   Cost of revenue, products   774     354   Gross margin 252 296   Operating expenses Selling, marketing, general and administrative 5,157 4,850 Research and development 1,156 943 Manufacturing contract costs   -     6,300   Total operating expenses   6,313     12,093   Operating loss (6,061 ) (11,797 )   Change in value of warrants, gain (loss) (2,155 ) 6,547 Change in value of embedded conversion feature liability, gain 621 4,931 Debt discount amortization expense (6,504 ) (11,949 ) Financing costs - (1,355 ) Other income - 34 Interest expense (245 ) (459 ) Interest income 5 23

Gain on extinguishment of debt

  91     -     Loss before income taxes (14,248 ) (14,025 )   Income taxes   -     -     Net loss and comprehensive loss (14,248 ) (14,025 )   Net loss attributable to non-controlling interest   42     -   Net loss and comprehensive loss attributable to Liquidmetal Technologies shareholders   (14,206 )   (14,025 )     Per common share basic and diluted:   Net loss per common share attributable to Liquidmetal Technologies shareholders, basic $ (0.04 ) $ (0.07 )   Net loss per common share attributable to Liquidmetal Technologies shareholders, diluted $ (0.04 ) $ (0.07 )   Number of weighted average shares - basic   341,451,559     188,298,113   Number of weighted average shares - diluted   341,451,559     188,298,113  

Liquidmetal Technologies, Inc.Otis BuchananMedia Relations949-635-2120otis.buchanan@liquidmetal.com