Back in September, Liquidmetal Technologies (OTCMKTS:LQMT) was hot in the market.
It had nearly doubled from $0.27 a few months before to $0.42.
Chairman and CEO, Professor Lugee Li, was presented with an Excellence in May in recognition of a new automotive cast design for structural portions of automotive closure panels (i.e., side doors, lift gates, hoods, trunk lids) where his unique, novel, and creative design and development of magnesium demonstrated significant advances over current practice.
Within the past few days, the stock has dipped at an alarming rate.
Before we go into details, take a look at the price movement:
Although there is speculation that the massive price dip is a result of another pump and dump, management needs to act fast before the stock drops any further.
Liquidmetal Technologies, Inc. was founded in 1987, headquartered in Rancho Santa Margarita, CA, and engages in the development of alloys. It engages in the research, development and commercialization of amorphous metals. The company designs, develops and sells products and components from bulk amorphous alloys to customers in various industrial applications which include medical, military, consumer, industrial and sporting goods products. The company is the leading developer of bulk amorphous alloys.
Amorphous alloys are unique materials that are distinguished by their ability to be injection molded and die cast into high performance applications for a broad range of markets. Liquidmetal alloys have atoms of considerablydissimilar sizes that form a relatively dense mixture. It shares the characteristics of glass such that its viscosity drops gradually with increased temperature and retains its form and amorphous properties even after being heat-formed.
In 2010, the company went into a license business deal with Apple Inc. after which, for a one-time licensing fee of $20.0 million, it gave Apple a continuous, global, exclusive license to commercialize all of the company’s intellectual property in the field of consumer electronic products. This transaction marked a great milestone for Liguidmetal Technologies and it used some the proceeds to reduce its debt capital. News of the transaction was the catalyst for a huge spike in value in the period.
Liquidmetal Technologies Inc announced the election of Mr. Tony Chung as a director of the company. In connection with his appointment to the Board of Directors, Mr. Chung resigned as Chief Financial Officer of the Company, and Mr. Bryce Van, former Corporate Controller, was appointed as Vice President of Finance and will serve as the Company’s principal financial and accounting officer.
Mr. Chung served as Liquidmetal’s Chief Financial Officer for nearly 10 years. During this time, he served a critical role in ensuring that the Company had adequate funding for operations and helped lead the Company to fulfill its vision as the leader of amorphous alloy technology.
Bryce Van has been a key member of Liquidmetal’s leadership team, serving as Corporate Controller for the last four years.
The company held an open house in October, where it welcomed more than 180 investors, customers, and partners to its headquarters in Lake Forest, California. On display were Liquidmetal’s three production lines: Medical-grade amorphous metal molding, Industrial-grade amorphous metal molding, and newly-added MIM (Metal Injection Molding). The open house also included the demonstration of secondary operations and a tour of laboratory facilities. Throughout the day, principal scientist Dr. Joseph Stevick presented a “deep dive” into the company’s recent achievements in biocompatibility research. Dr. Bruce Bromage, Executive Vice President of Operations, presented the Company’s business strategy, technology and near-term plans for further expansion.
Presentations were also given by representatives from certified partners ENGEL and Materion, detailing each company’s technical capabilities, contributions to the field of amorphous metals, and active partnerships with Liquidmetal.
CEO, Professor Li reaffirmed his commitment to growing Liquidmetal and to achieving profitability. As the owner of more than 400 million shares of Liquidmetal stock, he is deeply invested in Liquidmetal’s future and used the event to clarify his business strategy.
During the second quarter of 2017, the company received two hot crucible amorphous metal molding machines from its licensing partner Eontec Ltd. These machines allow the production of amorphous alloy parts that are up to three times larger and one-third the cost of established technologies. In addition, the Company continued the build out of its new manufacturing facility which the Company purchased in February2017.
In its recently released second quarter results, it was revealed that Liquidmetals Inc. generated revenues of $58,000 as it continued to focus on the development of a 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 $1.4 million in Q2 2017, as compared to $1.8 million in 2Q2016. Research and development expense was $439,000 in, compared to $623,000 in the second quarter of 2016. The decreases were primarily due to decreases in employee headcount and incentive compensation.
Cash and restricted cash totaled $45.4 million at June 30, 2017, as compared to $58.9 million at December 31, 2016. The decrease was primarily attributable to 2017 capital expenditures associated with the continued build-out of the Company’s manufacturing capabilities.
Investors and analysts view LQMT as an exciting story among small caps. The company is well financed and Professor Li has a vested interest in making LQMT a success. The key going forward is translating LQMT’s technology into revenues.
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Disclosure: We have no position in LQMT and have not been compensated for this article.