Liquidmetal® Technologies, Inc. (OTCQB: LQMT), a leading authority on commercial applications of amorphous alloys, reported results for the fiscal year ended December 31, 2020.
Our 2020 results reflect the completion of the first year under an outsourced manufacturing model, as originally outlined in our 2019 Restructuring Plan. We have made excellent progress in executing our strategy despite the global impacts of the COVID-19 pandemic.
Through our relationship with Dongguan Yihao Metal Materials Technology Co. Ltd. (“Yihao”), we delivered more than 60,000 parts that will be used in a premium dental device. Monthly deliveries have allowed us to validate Yihao as a supplier and navigate the ever-changing landscape of global trade. Expanded sales and marketing campaigns have allowed us to reach thousands of new contacts in targeted industries. In addition, we have leased approximately 80% of our office building since March 2020. Scheduled payments have been unaffected by shutdowns associated with the COVID-19 pandemic.
"We are pleased with the results of our strategic shift to outsourced manufacturing, demonstrating improvements in cost, quality and scalability, and an increase in direct sales and marketing efforts. This is driving sustained interest from leading medical and consumer products companies seeking innovative solutions to challenging design problems. While challenges remain in gaining broad market adoption of our technology, we are better positioned to develop and source volume applications with enhanced operations and a streamlined expense structure,” said Bruce Bromage, COO Liquidmetal Technologies.
2020 Financial Summary
Revenues were $989 thousand in 2020 and $1,373 thousand in 2019. The decrease was attributable to lower product sale volumes associated with the Company’s continued transition from internal manufacturing to outsourced manufacturing.
Cost of goods sold was $621 thousand in 2020 and $832 thousand in 2019. This decrease was primarily attributable to overall lower product revenues in 2020.
Selling, marketing, general and administrative expense was $3.8 million in 2020 and $5.4 million in 2019. The decrease in expenses was attributable to overall lower costs for employee compensation due to headcount reductions associated with the 2019 Restructuring Plan.
Research and development expenses decreased to $0.1 million in 2020, from $1.3 million in 2019. The decrease in expense was mainly due to reductions in employee compensation, and associated development initiatives, due to headcount reductions associated with the 2019 Restructuring Plan.
As of December 31, 2020, the Company had $1,519 thousand in cash and cash equivalents and restricted cash, as well as $27,488 thousand 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 December 31, 2020 Form 10-K, 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.
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
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|Preferred Stock, $0.001 par value; 10,000,000 shares authorized; 0 shares issued and outstanding at December 31, 2020 and December 31, 2019, 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 December 31, 2020 and December 31, 2019, respectively|
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|LIQUIDMETAL TECHNOLOGIES, INC. AND SUBSIDIARIES|
CONSOLIDATED STATEMENTS OF OPERATIONS
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Years Ended December 31,
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Liquidmetal Technologies, Inc.