Liquidmetal Technologies Reports Third Quarter 2016 Results

Liquidmetal® Technologies, Inc. (OTCQB: LQMT), the leading developer of amorphous alloys, reported results for its third quarter, ended September 30, 2016.

Significant Events

On October 26, 2016, the Company issued and sold 300,000,000 shares of Company's common stock for an aggregate purchase price of $55 million, comprised of 200,000,000 shares at a price of $0.15 per share and 100,000,000 shares at a price of $0.25 per share to the Investor party to the Securities Purchase Agreement executed in March 2016. As a result of this closing, the Investor has completed its entire $63.4 million investment in the Company contemplated by the 2016 Purchase Agreement.

The Company will announce a time in the near future to hold a special conference call with investors to go over the recent events as well as provide guidance on the future goals of the Company.

Q3 2016 Financial Summary

In Q3 2016, the Company generated revenues of $154 thousand as it continued to focus on the development of prototype and commercial parts for its customers and partnering with licensees on the development of the Company's technology and production processes. Selling, marketing, general and administrative expense was $1.7 million in Q3 2016, as compared to $1.8 million in Q3 2015. Research and development expense was $548 thousand in Q3 2016, compared to $491 thousand in Q3 2015. Cash and restricted cash totaled $6.4 million at September 30, 2016, as compared to $4.7 million at December 31, 2015.

For a more detailed and complete analysis of the Company's financial results, please refer to the Company's September 30, 2016 Form 10Q, which it filed earlier today.

About Liquidmetal Technologies

Rancho Santa Margarita, California-based Liquidmetal Technologies, Inc. is the leading developer of bulk alloys 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 2015 Annual Report on Form 10-K.
LIQUIDMETAL TECHNOLOGIES, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except par value and share data)
   
September 30, December 31,
  2016     2015  
(Unaudited) (Audited)

ASSETS
 
Current assets:
Cash $ 6,402 $ 2,773
Restricted cash 5 2,008
Trade accounts receivable, net of allowance for doubtful accounts 17 30
Inventory 227 83
Prepaid expenses and other current assets   452     408  
Total current assets $ 7,103 $ 5,302
Property and equipment, net 1,134 1,370
Patents and trademarks, net 518 570
Other assets   36     31  
Total assets $ 8,791   $ 7,273  
 

LIABILITIES AND SHAREHOLDERS' EQUITY
 
Current liabilities:
Short-term debt - 700
Accounts payable 216 250
Accrued liabilities 1,695 947
Deferred revenue 13 77
Warrant liabilities, current 1,255 -
Option liabilities   -     -  
Total current liabilities $ 3,179 $ 1,974
 
Long-term liabilities:
Warrant liabilities, long-term 1,449 59
Other long-term liabilities   856     856  
Total liabilities $ 5,484 $ 2,889
 
Shareholders' equity:
Preferred Stock, $0.001 par value; 10,000,000
shares authorized; 0 shares issued and outstanding at
September 30, 2016 and December 31, 2015, respectively - -
Common stock, $0.001 par value; 1,100,000,000 shares authorized; 582,332,818
and 477,149,485 shares issued and outstanding at September 30, 2016
and December 31, 2015, respectively. 582 477
Warrants 18,179 18,179
Additional paid-in capital 216,357 203,735
Accumulated deficit (231,743 ) (217,945 )
Non-controlling interest in subsidiary (68 ) (62 )
   
Total shareholders' equity 3,307 4,384
   
Total liabilities and shareholders' equity $ 8,791   $ 7,273  
 
LIQUIDMETAL TECHNOLOGIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(in thousands, except share and per share data)

(unaudited)
         

For the Three Months Ended September 30,
For the Nine Months

Ended September 30,
  2016     2015       2016     2015  
 
Revenue
Products $ 154 $ 42 $ 329 $ 80
Licensing and royalties   -     -     27     27  
Total revenue 154 42 356 107
 
Cost of sales   165     160     336     312  
Gross profit (loss) (11 ) (118 ) 20 (205 )
 
Operating expenses
Selling, marketing, general and administrative 1,679 1,763 5,461 5,506
Research and development   548     491     1,730     1,428  
Total operating expenses   2,227     2,254     7,191     6,934  
Operating loss (2,238 ) (2,372 ) (7,171 ) (7,139 )
 
Change in value of warrant liabilities, gain (loss) 563 1,138 (1,885 ) 1,326
Change in value of option liabilities, loss - - (2,613 ) -
Loss on contract modification (2,126 ) - (2,126 ) -
Interest expense (1 ) (1 ) (9 ) (1 )
Interest income   -     5     -     19  
 
Net loss and comprehensive loss (3,802 ) (1,230 ) (13,804 ) (5,795 )
 
Net loss attributable to non-controlling interest   2     2     6     6  
Net loss and comprehensive loss attributable to
Liquidmetal Technologies shareholders $ (3,800 ) $ (1,228 ) $ (13,798 ) $ (5,789 )
 
 
 
Net loss per common share attributable to Liquidmetal
Technologies shareholders, basic and diluted $ (0.01 ) $ (0.00 ) $ (0.02 ) $ (0.01 )
 
Number of weighted average shares - basic and diluted   582,332,818     475,816,152     558,918,003     468,890,226  

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