LAKE FOREST, Calif.–(BUSINESS WIRE)–Liquidmetal® Technologies, Inc. (OTCQB: LQMT), a leading authority on commercial applications of amorphous alloys, reported results for its second quarter ended June 30, 2020.

Management Commentary

Our second quarter results reflect our continued shifting of manufacturing operations to trusted suppliers, refinement of our operating cost structure, and active management of the Company’s assets to maximize value. During the second quarter, we have continued to engage with our primary supplier, Yihao, to advance product development and design efforts, improve manufacturing throughput, and deliver bulk metallic glass parts into key markets. This has resulted in securing our first orders for recurring, volume, deliveries of functional parts utilizing our technology. Monthly shipments began in July and will result in regular supply into a targeted market, along with providing market participants with needed benchmarks on the advantages of our technology.

Q2 2020 Financial Summary

During the second quarter of 2020, the Company generated $33 thousand in revenue through initial part deliveries on development projects, as the Company continues to shift production to outsourced suppliers.

Cost of goods sold was $35 thousand in Q2 2020 and $103 thousand in Q2 2019. This decrease was primarily attributable to lower production part deliveries due to the recent transition in the Company’s manufacturing strategy and a build-up of existing customer inventories in the latter part of 2019.

Selling, marketing, general and administrative expense was $0.9 million in Q2 2020 and $1.3 million in Q2 2019. The decrease is primarily due to lower costs associated with employee compensation, inclusive of non-cash stock-based compensation.

Research and development decreased to $27 thousand in Q2 2020, from $406 thousand in Q2 2019. The decrease is mainly due to headcount and internal project reductions as a result of the recently completed restructuring plan.

Cash and restricted cash totaled $20.5 million at June 30, 2020, as compared to $19.5 million at December 31, 2019. The change is primarily associated with movements within investments in debt securities, off-set by cash outflows to fund operations.

For a more detailed and complete analysis of the Company’s financial results, please refer to the Company’s June 30, 2020 Form 10Q, 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.

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 2019 Annual Report on Form 10-K.