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Liquidmetal Reports Third Quarter 2017 Results

LAKE FOREST, Calif.--(BUSINESS WIRE)-- Liquidmetal® Technologies, Inc. (OTCQB: LQMT), the leading developer of amorphous alloys, reported results for its third quarter ended September 30, 2017.

Q3 2017 Operational Highlights

The Company reached major milestones in its readiness plan for volume production in medical and automotive markets. Showcasing its new manufacturing facility at its recent open house, the Company demonstrated its ENGEL-based medical grade molding systems and upgraded EON industrial grade molding systems. New metal injection molding production systems were also introduced. The facility is configured to scale rapidly. A planned power upgrade will support additional expansion in the first half of 2018.

“Our customers have shifted from an interest in a novel technology to a strong desire to produce high volumes of amorphous metal parts. We now have the capabilities customers demand to scale high-value production,” said Bruce Bromage, COO.

Q3 2017 Financial Summary

During the third quarter of 2017, the Company generated revenues of $36 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 both Q3 2017 and Q3 2016. Research and development expense was $500 thousand in Q3 2017, compared to $548 thousand in Q3 2016.

Cash and restricted cash totaled $43.3 million at September 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.

For a more detailed and complete analysis of the Company’s financial results, please refer to the Company’s September 30, 2017 Form 10Q, which was filed earlier today.

About Liquidmetal Technologies

Lake Forest, California-based Liquidmetal Technologies, Inc. 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. 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 2016 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,

2017

2016

(Unaudited) (Audited)

ASSETS

Current assets:
Cash $ 43,277 $ 58,896
Restricted cash 5 5
Trade accounts receivable 4 95
Inventory 722 390
Prepaid expenses and other current assets 408 312
Total current assets $ 44,416 $ 59,698
Property and equipment, net 11,943 1,139
Patents and trademarks, net 430 494
Other assets 14 36
Total assets $ 56,803 $ 61,367

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
Accounts payable 202 331
Accrued liabilities 471 1,070
Deferred revenue 8 13
Warrant liabilities, current 1,582 2,224
Total current liabilities $ 2,263 $ 3,638
Long-term liabilities:
Warrant liabilities, long-term 3,765 2,047
Other long-term liabilities 856 856
Total liabilities $ 6,884 $ 6,541
Shareholders' equity:
Preferred Stock, $0.001 par value; 10,000,000
shares authorized; 0 shares issued and outstanding at
September 30, 2017 and December 31, 2016, respectively - -
Common stock, $0.001 par value; 1,100,000,000 shares authorized; 901,910,986
and 886,090,164 shares issued and outstanding at September 30, 2017
and December 31, 2016, respectively. 901 886
Warrants 18,179 18,179
Additional paid-in capital 276,315 272,520
Accumulated deficit (245,403 ) (236,689 )
Non-controlling interest in subsidiary (73 ) (70 )
Total shareholders' equity 49,919 54,826
Total liabilities and shareholders' equity $ 56,803 $ 61,367
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,

2017

2016

2017

2016

Revenue
Products $ 36 $ 154 $ 142 $ 329
Licensing and royalties - - - 27
Total revenue 36 154 142 356
Cost of sales 87 165 216 336
Gross profit (loss) (51 ) (11 ) (74 ) 20
Operating expenses
Selling, marketing, general and administrative 1,739 1,679 4,791 5,461
Research and development 500 548 1,331 1,730
Total operating expenses 2,239 2,227 6,122 7,191
Operating loss (2,290 ) (2,238 ) (6,196 ) (7,171 )
Change in value of warrant liabilities, gain (loss) (1,674 ) 563 (2,563 ) (1,885 )
Change in value of option liabilities, loss - - - (2,613 )
Loss on contract modification - (2,126 ) - (2,126 )
Interest expense - (1 ) - (9 )
Interest income 13 - 42 -
Net loss and comprehensive loss (3,951 ) (3,802 ) (8,717 ) (13,804 )
Net loss attributable to non-controlling interest - 2 3 6
Net loss and comprehensive loss attributable to
Liquidmetal Technologies shareholders $ (3,951 ) $ (3,800 ) $ (8,714 ) $ (13,798 )
Net loss per common share attributable to Liquidmetal
Technologies shareholders, basic and diluted $ (0.00 ) $ (0.01 ) $ (0.01 ) $ (0.02 )
Number of weighted average shares - basic and diluted 899,432,109 582,332,818 894,198,803 558,918,003

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Liquidmetal Technologies, Inc.
Otis Buchanan
Media Relations
949-635-2120
otis.buchanan@liquidmetal.com

Source: Liquidmetal Technologies, Inc.