Press release·05/17/2025 07:45:45

Overview

Liquidmetal Technologies is a materials technology company that works with manufacturing and commercial partners to develop and commercialize products made from its proprietary amorphous alloys. The company’s Liquidmetal® family of alloys consists of various bulk alloys and composites that utilize the advantages offered by amorphous alloy technology. Liquidmetal designs, develops, and sells custom products and parts from bulk amorphous alloys to customers in different industries, and also partners with third-party manufacturers and licensees to develop and commercialize Liquidmetal alloy products.

Amorphous alloys are unique materials that retain a random atomic structure when they solidify, unlike the crystalline atomic structure that forms in other metals and alloys. Liquidmetal alloys possess a combination of performance, processing, and potential cost advantages that the company believes will make them preferable to other materials in a variety of applications. The amorphous structure enables Liquidmetal alloys to overcome certain performance limitations caused by inherent weaknesses in crystalline structures, facilitating superior characteristics such as exceptional dimensional control, excellent corrosion resistance, high strength, and the ability to form complex shapes.

Liquidmetal’s revenues are derived from selling its bulk amorphous alloy custom products and parts, selling tooling and prototype parts, and product licensing and royalty revenue. The company’s cost of sales consists primarily of manufacturing costs, including raw alloy and direct labor. Selling, general, and administrative expenses include salaries, travel, consulting, and other operational expenses. Research and development expenses are focused on discovering new alloy compositions, developing improved processing technology, and identifying new applications for Liquidmetal’s alloys.

Significant Transactions

Yihao Manufacturing Agreement: In January 2022, Liquidmetal entered into a 5-year manufacturing agreement with Dongguan Yihao Metal Materials Technology Co. Ltd. (Yihao) to become the primary outsourced manufacturer of its products.

Liquidmetal Golf License: In January 2022, Liquidmetal Golf subsidiary granted a non-exclusive worldwide sublicense to Amorphous Technologies Japan, Inc. to manufacture and sell golf clubs and related products using Liquidmetal’s amorphous alloy technology.

Corporate Facility Purchase and Lease: In February 2017, Liquidmetal purchased a 41,000 square foot facility in Lake Forest, CA. In January 2020, the company leased a portion of the facility to MatterHackers, Inc. In March 2025, Liquidmetal entered a new 5-year lease for the expanded 40,090 square foot facility.

2016 Purchase Agreement: In March 2016, Liquidmetal issued 405 million shares of common stock to Liquidmetal Technology Limited, a company controlled by the Chairman, for an aggregate purchase price of $63.4 million.

Eontec License Agreement: Also in March 2016, Liquidmetal entered into a perpetual cross-license agreement with DongGuan Eontec Co., Ltd. for their respective technologies.

Eutectix Business Development Agreement: In January 2020, Liquidmetal entered a business development agreement with Eutectix LLC to collaborate on manufacturing products based on Liquidmetal’s amorphous metal alloys. The agreement expired in January 2025.

Apple License Transaction: In August 2010, Liquidmetal licensed its intellectual property to a wholly-owned subsidiary, Crucible Intellectual Property, LLC, which then granted Apple a perpetual, exclusive license in the field of consumer electronic products.

Swatch Group License: In March 2009, Liquidmetal entered a license agreement with Swatch Group, Ltd. granting them non-exclusive rights to use Liquidmetal’s technology to produce and market watches and certain other luxury products.

Results of Operations

Comparison of Q1 2025 and Q1 2024:

Metric	Q1 2025	% of Revenue	Q1 2024	% of Revenue	Change	% Change
Revenue - Products	$282	100.0%	$173	100.0%	$109	63.0%
Revenue - Licensing/Royalties	$0	0.0%	$0	0.0%	$0	0.0%
Total Revenue	$282	100.0%	$173	100.0%	$109	63.0%
Cost of Sales	$204	72.3%	$134	77.5%	$70	52.2%
Gross Profit	$78	27.7%	$39	22.5%	$39	100.0%
Selling, Marketing, G&A Expenses	$975	345.7%	$763	441.0%	$212	27.8%
Research & Development Expenses	$4	1.4%	$4	2.3%	$0	0.0%
Operating Loss	$(901)	-319.5%	$(728)	-420.8%	$(173)	23.8%
Net Loss	$(568)	-201.4%	$(314)	-181.5%	$(254)	80.9%

Revenue increased by 63% in Q1 2025 compared to Q1 2024, driven by higher product shipments. Cost of sales increased at a slower rate, leading to a 100% increase in gross profit. However, operating expenses, particularly selling and administrative costs, grew significantly, resulting in a higher operating loss and net loss.

Non-Operational Income and Expenses

Investment income increased due to higher yields on debt securities, while interest income decreased due to lower yields. Lease income remained flat year-over-year.

Liquidity and Capital Resources

Cash used in operating activities was $299 million in Q1 2025, up from $196 million in Q1 2024, as the company continued to fund its operations and product development. Cash used in investing activities, primarily for purchases of debt securities, totaled $812 million in Q1 2025 compared to cash provided of $757 million in Q1 2024.

As of March 31, 2025, Liquidmetal had $4.9 billion in cash and restricted cash, as well as $17.2 billion in investments in debt securities, providing $22.1 billion in readily available liquidity. The company believes its current capital resources will be sufficient to fund operations for the foreseeable future, despite the ongoing operating losses.

Overall, Liquidmetal continues to make progress in commercializing its unique amorphous alloy technology, though it has experienced long sales lead times and operating losses. The company’s strong liquidity position provides it the flexibility to advance its existing strategy or pursue alternative paths forward.