Liquidmetal Techs Inc - LQMT stock
OTC Symbol: LQMT | OTC Tier: OTCQB
Company Details[edit]
Liquidmetal Technologies Inc. [OTCQB: LQMT] is a California-based materials technology company that designs, develops, and sells custom products and parts from bulk amorphous alloys. The contract manufacturer uses its patented injection molding technology to produce amorphous metal components. Amorphous metals, also known as bulk metallic glass, allow one to efficiently mold precision parts with very low shrinkage and acquire excellent mechanical properties. The firm distributes its resulting products to customers in different industries in the U.S. and internationally. The bulk amorphous alloy custom products and parts are employed in various applications, including in non-consumer electronic devices, automotive components, sports, medical products, and leisure commodities. The company also offers tooling and prototype parts like demonstration parts and test samples for clients with products in production. It also engages in product licensing operations and royalty. The company was initially incorporated in 1987 and was reincorporated in May 2003 in Delaware. Its shares are listed on OTCQB under the LQMT ticker symbol. Liquidmetal Tech. is headquartered in Lake Forest, California.[1]
General Corporate Operations[edit]
Liquidmetal Technologies develops and commercializes its products derived from amorphous alloys. The firm's products are distributed for consumer and industrial, medical, military, and sporting goods, among other applications. The company’s family of alloys comprises a portfolio of proprietary bulk alloys and composites that are boosted by the advantages presented by the amorphous alloy technology. Liquidmetal Tech derives its revenues from selling liquidmetal alloys to domestic and international markets, selling tooling and prototype parts, product licensing and royalty revenue, and research and development revenues. [2] The firm partners with third-party manufacturers and licensees to develop and popularize its alloy products. Liquidmetal alloys are proprietary amorphous alloys with processing, performance, and potential cost advantages that give them an edge over other materials in many applications.
The company believes that the alloys and their unique modeling technologies can generate components employed in applications that manifest dimensional control and repeatability. Its resulting alloy component products exhibit excellent corrosion resistance, high elastic limit, brilliant surface finish, high hardness, high strength, non-magnetic alloys, and the ability to form different complex shapes. The company believes that the underlying advantages of its alloys mays outshine high-performance alloys such as stainless steel and titanium in numerous applications. It also leverages the advantages of introducing new unachievable products and applications with competing alloy materials. The firm employs a strategy comprising three vital elements for success in its business operations. These include focusing its marketing operations on select products with optimized gross margins, pursuing strategic partnerships for swift development and commercialization of its products, and advancing the Liquidmetal Brand.[2]
The Liquidmetal Process[edit]
Liquidmetal’s patented modeling technology has eased amorphous commercial manufacture and production. The LQM proprietary process involves five vital stages: depositing raw material, melting, injection, Ejecting, and finally De-Gating. The raw material phase involves alloying Liquidmetal, which is then crushed into gravel-like form for use in the molding machine. The melting stage kicks in with induction heating to melt the alloy under a vacuum in a controlled environment. Injection port channels the alloy to four distinct cavities to produce the parts. Ejection pins are instigated and aid the robotic arm in separating the parts from remnants of the injection port and runners. De-Gating involves introducing a secondary process, such as a water jet or laser beam, to remove the underlying part.[3]
Company and Industry Updates[edit]
Liquidmetal Tech stroke a five-year manufacturing agreement with Dongguan Yihao Metal Materials Technology Co. Ltd. According to the agreement, Yihao would become the firm’s products, primary outsourced manufacturer. Yihao consented to become a non-exclusive contract manufacturer for the company's offered and sold alloy parts at cost-plus basis derived prices. Three significant customers accounted for 74% ($24)of the firm’s revenue in the 2022 financial year. A single customer also accounted for 100% of the company’s outstanding account receivables as of December 31, 2022.[4]
The company bought a 41,000-square-foot manufacturing facility in Lake Forest on n February 16, 2017, for approximately $7,818. It commenced operations on the facility in July 2017.[5] Liquidmetal has an active Parallel License Agreement with Dongguan Eontec Co., Ltd., a Hong Kong-based corporation. The two parties agreed to cross-license certain patents, trademarks, and technical information. The firm advances to Eontec a paid-up, royalty-free, perpetual license to its patents and associated technical information to make, use, sell, offer to sell, import, and export stipulated products in specific geographical locations outside of Europe and North America. In Return, Liquidmetal was granted a paid-up, royalty-free, and perpetual license to Eontec’s patents and accompanying technical information to produce, have made, offer to sell, sell, use, import, and export certain products in geographical areas outside certain countries in Asia. The two firms also collaborated to propel the commercialization of the amorphous alloy technology in their respective geographical footprint stretches.[6]
The company’s financial results highlights for Q3 2022 for the period ended September 30 included:
- Total revenue for the three months was $18 000 compared to $406 0000 in the same period in 2021. The dip was attributed to decreased general shipments of products made by the firm’s contract manufacturers and reduced payments under development projects
- Gross profit fell to $3 000 (17% of total revenue) from $87 000 (21% of total revenue) in Q3 2021
- Recorded $760 000 in operating loss for the quarter compared to $1,570 000 in a similar quarter in 2021.
The company continues to invest in its technology infrastructure and champion its global adoption. The firm expects to continue recording operating losses over an unforeseeable future until it can increase its revenues with regular shipments of commercial products and parts via its third-party contracted manufacturers or acquire significant licensing revenues.[7]
Corporate Governance[edit]
Executives[edit]
Tony Chung, Chief Executive Officer
- Has been the CEO since July 2021
- He was initially the firm’s CFO since 2008 and a member of the Board of Directors since 2017
- Before joining Liquidmetal Tech. he served as the CFO of SolarCity, currently under Tesla Inc.
- He has also been a Managing Director of Baypoint Ventures.
- Mr. Chung is an attorney with a J.D. Degree from PCU Law School and a B.S. in business from UC Berkeley.
Isaac Bresnick serves as the company's President.[8]
- ↑ Liquidmetal Tech Company Profile – Yahoo Finance. Accessed on March 24, 2023.
- ↑ LIQUIDMETAL TECHNOLOGIES INC FORM 10-K FOR THE PERIOD ENDING 12/31/2022/ Business Overview, Pages 3, 4, & 5 – Seeking Alpha. Filed on March 14, 2023.
- ↑ The Liquidmetal Process – Liquidmental Tech. Website. Accessed on March 24, 2023.
- ↑ LIQUIDMETAL TECHNOLOGIES INC FORM 10-K FOR THE PERIOD ENDING 12/31/2022/ Manufacturing & Customers, Page 9 – Seeking Alpha. Filed on March 14, 2023.
- ↑ LIQUIDMETAL TECHNOLOGIES, INC. FORM 10-Q for the period ending September 30, 2022/Description of Business, page 8 – Liquidmetal website. Retrieved on March 24, 2023.
- ↑ LIQUIDMETAL TECHNOLOGIES, INC. FORM 10-Q for the period ending September 30, 2022/ Significant Transactions, pages 9 & 10 – Liquidmetal website. Retrieved on March 24, 2023.
- ↑ Liquidmetal Technologies, Inc. Form 10-Q/Item 2 – Management’s Discussion and Analysis of Financial Condition and Results of Operations/Revenue and operating expenses, Pages 20 & 21. Read on March 25, 2023.
- ↑ Corporate Governance – Executives – Liquidmetal Tech. Website. Accessed on March 25, 2023.
