LIQUIDMETAL TECHNOLOGIES INC
For the period ended Sep 30, 2024. Filed Oct 31, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Oct 31, 2024
LQMTStored price and day change unavailable
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-08-13.
0001437749-24-026389
Item 2. – Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-10-31.
0001437749-24-032664
Item 2. – Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 68 previous paragraphs and 68 current paragraphs.
48 unchanged; 19 reworded; 1 added; 1 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 3 previous and 3 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (1)
Current report
Comparison of the nine months ended September 30, 2024 and 2023
Removed paragraphs (1)
Previous report
Comparison of the six months ended June 30, 2024 and 2023
Reworded paragraphs (19)
Previous wording
Revenue – Total revenue increased to $242 for the three months ended June 30, 2024 from $67 for the three months ended June 30, 2023. The increase was attributable to increase in product shipments primarily related to the launch of health monitoring rings utilizing our technology.
Current wording
Revenue – Total revenue increased to $316 for the three months ended September 30, 2024 from $127 for the three months ended September 30, 2023. The increase was attributable to increase in product shipments primarily related to the launch of health monitoring rings utilizing our technology.
Previous wording
Cost of sales – Cost of sales was $187, or 77.3% of total revenue, for the three months ended June 30, 2024, as compared to $52, or 77.6% of total revenue, for the three months ended June 30, 2023. The increase in our cost of sales was primarily driven by lower product revenues during Q2 2023 compared to Q2 2024. Once we are able to sustain and increase shipments of routine, commercial products and parts through our contract manufacturers, we expect our cost of sales percentages to decrease, stabilize, and be more predictable.
Current wording
Cost of sales – Cost of sales was $239, or 75.6% of total revenue, for the three months ended September 30, 2024, as compared to $89, or 70.1% of total revenue, for the three months ended September 30, 2023. The increase in our cost of sales was primarily driven by lower product revenues during Q3 2023 compared to Q3 2024. Once we are able to sustain and increase shipments of routine, commercial products and parts through our contract manufacturers, we expect our cost of sales percentages to decrease, stabilize, and be more predictable.
Previous wording
Gross profit – Our gross profit increased by $40 from $15 for the three months ended June 30, 2023 to $55 for the three months ended June 30, 2024. Our gross margin percentage increased slightly from Q2 2023 to Q2 2024. Our gross profit percentages have fluctuated and may continue to fluctuate based on production volumes and quoted production prices per unit and may not be representative of our future business. If we are able to sustain and increase shipments of routine, commercial products and parts through future orders to third party contract manufacturers, we expect our gross profit percentages to stabilize, increase, and be more predictable.
Current wording
Gross profit – Our gross profit increased by $39 from $38 for the three months ended September 30, 2023 to $77 for the three months ended September 30, 2024. Our gross margin percentage decreased slightly from Q3 2023 to Q3 2024. Our gross profit percentages have fluctuated and may continue to fluctuate based on production volumes and quoted production prices per unit and may not be representative of our future business. If we are able to sustain and increase shipments of routine, commercial products and parts through future orders to third party contract manufacturers, we expect our gross profit percentages to stabilize, increase, and be more predictable.
Previous wording
Selling, marketing, general and administrative – Selling, marketing, general, and administrative expenses decreased by $95 to $857, or 354.1% of revenue, for the three months ended June 30, 2024 from $952, or 1,420.9% of revenue, for the three months ended June 30, 2023. The decrease in expenses was primarily attributable to decrease in trade show and investment relations expenses in Q2 2024 compared to Q2 2023.
Current wording
Selling, marketing, general and administrative – Selling, marketing, general, and administrative expenses increased by $157 to $903, or 285.8% of revenue, for the three months ended September 30, 2024 from $746, or 587.4% of revenue, for the three months ended September 30, 2023. The increase in expenses was primarily attributable to an increase in operating expenses year over year.
Previous wording
Research and development – Research and development expenses stayed the same in Q2 2024 compared to Q2 2023. Going forward, we will continue to perform research and development of new Liquidmetal alloys and related processing capabilities, albeit on a reduced basis. We continue to invest in our technology infrastructure to expedite the adoption of our technology, but we have experienced long sales lead times for customer adoption of our technology. Until that time when we can either (i) increase our revenues with shipments of routine, commercial products and parts through third party contract manufacturers or (ii) obtain significant licensing revenues, we expect to continue to have operating losses for the foreseeable future.
Current wording
Research and development – Research and development expenses stayed similar in Q3 2024 compared to Q3 2023. Going forward, we will continue to perform research and development of new Liquidmetal alloys and related processing capabilities, albeit on a reduced basis. We continue to invest in our technology infrastructure to expedite the adoption of our technology, but we have experienced long sales lead times for customer adoption of our technology. Until that time when we can either (i) increase our revenues with shipments of routine, commercial products and parts through third party contract manufacturers or (ii) obtain significant licensing revenues, we expect to continue to have operating losses for the foreseeable future.
Previous wording
Interest and Investment Income – Interest and investment income relates to interest earned from our cash deposits and investments in debt securities for the respective periods. Interest and investment income was $274 and $143 for the three months ended June 30, 2024 and 2023, respectively. The increase was primarily due to higher overall yields on debt securities as a result of an increase in overall interest rate increases by the government in Q2 2024 compared to Q2 2023.
Current wording
Interest and Investment Income – Interest and investment income relates to interest earned from our cash deposits and investments in debt securities for the respective periods. Interest and investment income was $258 and $157 for the three months ended September 30, 2024 and 2023, respectively. The increase was primarily due to higher overall yields on debt securities as a result of interest rate increases by the government in Q3 2024 compared to Q3 2023.
Previous wording
Other income – Other income relates to collections from previously written off accounts receivables that were deemed uncollectable and employee retention tax credits for the three months ended June 30, 2024. We did not have any in the prior year in the same period.
Current wording
Other income – Other income relates to employee retention tax credits for the three months ended September 30, 2024. We did not have any in the prior year in the same period.
Previous wording
Revenue – Total revenue increased to $415 for the six months ended June 30, 2024 from $97 for the six months ended June 30, 2023. The increase was attributable to increase in product shipments primarily related to the launch of health monitoring rings utilizing our technology.
Current wording
Revenue – Total revenue increased to $731 for the nine months ended September 30, 2024 from $224 for the nine months ended September 30, 2023. The increase was attributable to increase in product shipments primarily related to the launch of health monitoring rings utilizing our technology.
Previous wording
Cost of sales – Cost of sales was $321, or 77.3% of total revenue, for the six months ended June 30, 2024, as compared to $75, or 77.3% of total revenue, for the six months ended June 30, 2023. The increase in our cost of sales was primarily driven by lower product revenues during six months ended June 30, 2023 compared to six months ended June 30, 2024. Once we are able to sustain and increase shipments of routine, commercial products and parts through our contract manufacturers, we expect our cost of sales percentages to decrease, stabilize, and be more predictable.
Current wording
Cost of sales – Cost of sales was $560, or 76.6% of total revenue, for the nine months ended September 30, 2024, as compared to $164, or 73.2% of total revenue, for the nine months ended September 30, 2023. The increase in our cost of sales was primarily driven by lower product revenues during nine months ended September 30, 2023 compared to nine months ended September 30, 2024. Once we are able to sustain and increase shipments of routine, commercial products and parts through our contract manufacturers, we expect our cost of sales percentages to decrease, stabilize, and be more predictable.
Previous wording
Gross profit – Our gross profit increased by $72 from $22 for the six months ended June 30, 2023 to $94 for the six months ended June 30, 2024. Our gross margin percentage had no change from six months ended June 30, 2023 to six months ended June 30, 2024. Our gross profit percentages have fluctuated and may continue to fluctuate based on production volumes and quoted production prices per unit and may not be representative of our future business. If we are able to sustain and increase shipments of routine, commercial products and parts through future orders to third party contract manufacturers, we expect our gross profit percentages to stabilize, increase, and be more predictable.
Current wording
Gross profit – Our gross profit increased by $111 from $60 for the nine months ended September 30, 2023 to $171 for the nine months ended September 30, 2024. Our gross profit percentages have fluctuated and may continue to fluctuate based on production volumes and quoted production prices per unit and may not be representative of our future business. If we are able to sustain and increase shipments of routine, commercial products and parts through future orders to third party contract manufacturers, we expect our gross profit percentages to stabilize, increase, and be more predictable.
Previous wording
Selling, marketing, general and administrative – Selling, marketing, general, and administrative expenses decreased by $138 to $1,620, or 390.4% of revenue, for the six months ended June 30, 2024 from $1,758, or 1,812.4% of revenue, for the six months ended June 30, 2023. The decrease in expenses was primarily attributable to decrease in trade show and investment relations expenses during the six months ended June 30, 2024 compared to the same comparative period in the prior year.
Current wording
Selling, marketing, general and administrative – Selling, marketing, general, and administrative expenses increased by $20 to $2,524, or 345.3% of revenue, for the nine months ended September 30, 2024 from $2,504, or 1117.9% of revenue, for the nine months ended September 30, 2023. The increase in expenses was primarily attributable to increase in operating expenses during the nine months ended September 30, 2024 compared to the same comparative period in the prior year.
Previous wording
Research and development – Research and development expenses decreased to $9 for the six months ended June 30, 2024 from $11 for the six months ended June 30, 2023. Going forward, we will continue to perform research and development of new Liquidmetal alloys and related processing capabilities, albeit on a reduced basis. We continue to invest in our technology infrastructure to expedite the adoption of our technology, but we have experienced long sales lead times for customer adoption of our technology. Until that time when we can either (i) increase our revenues with shipments of routine, commercial products and parts through third party contract manufacturers or (ii) obtain significant licensing revenues, we expect to continue to have operating losses for the foreseeable future.
Current wording
Research and development – Research and development expenses stayed similar during the nine months ended September 30, 2024 compared to the same period in the prior year. Going forward, we will continue to perform research and development of new Liquidmetal alloys and related processing capabilities, albeit on a reduced basis. We continue to invest in our technology infrastructure to expedite the adoption of our technology, but we have experienced long sales lead times for customer adoption of our technology. Until that time when we can either (i) increase our revenues with shipments of routine, commercial products and parts through third party contract manufacturers or (ii) obtain significant licensing revenues, we expect to continue to have operating losses for the foreseeable future.
Previous wording
Interest and Investment Income – Interest and investment income relates to interest earned from our cash deposits and investments in debt securities for the respective periods. Interest and investment income was $517 and $243 for the six months ended June 30, 2024 and 2023, respectively. The increase was primarily due to higher overall yields on debt securities as a result of an increase in overall interest rate increases by the government during the six months ended June 30, 2024 compared to same comparative period in the prior year.
Current wording
Interest and Investment Income – Interest and investment income relates to interest earned from our cash deposits and investments in debt securities for the respective periods. Interest and investment income was $775 and $400 for the nine months ended September 30, 2024 and 2023, respectively. The increase was primarily due to higher overall yields on debt securities as a result of higher overall interest rates by the government during the nine months ended September 30, 2024 compared to same comparative period in the prior year.
Previous wording
Lease income – Lease income relates to straight-line rental income received under the Facility Lease. Such amounts were $178 and $207 for the six months ended June 30, 2024 and 2023, respectively.
Current wording
Lease income – Lease income relates to straight-line rental income received under the Facility Lease. Such amounts were $267 and $296 for the nine months ended September 30, 2024 and 2023, respectively.
Previous wording
Other income – Other income relates to collections from previously written off accounts receivables that were deemed uncollectable and employee retention tax credits for the three months ended June 30, 2024. We did not have any in the prior year in the same period.
Current wording
Other income – Other income relates to collections from previously written off accounts receivables that were deemed uncollectable and employee retention tax credits for the nine months ended September 30, 2024. We did not have any in the prior year in the same period.
Previous wording
Cash used in operating activities totaled $143 and $734 for the six months ended June 30, 2024 and 2023, respectively. The cash was primarily used to fund operating expenses related to our business and product development efforts.
Current wording
Cash used in operating activities totaled $619 135 and $1,200 for the nine months ended September 30, 2024 and 2023, respectively. The cash was primarily used to fund operating expenses related to our business and product development efforts.
Previous wording
Cash provided by (used in) investing activities totaled ($1,327) and $8,414, for the six months ended June 30, 2024 and 2023, respectively. Investing inflows primarily consist of proceeds from the sale of debt securities. Investing outflows primarily consist of purchases of debt securities.
Current wording
Cash provided by (used in) investing activities totaled ($3,812) and $8,414, for the nine months ended September 30, 2024 and 2023, respectively. Investing inflows primarily consist of proceeds from the sale of debt securities. Investing outflows primarily consist of purchases of debt securities.
Previous wording
The Company did not have any financing activities during the six months ended June 30, 2024 and 2023.
Current wording
The Company did not have any financing activities during the nine months ended September 30, 2024 and 2023.
Previous wording
However, as of June 30, 2024, we had $7,372 in cash and restricted cash, as well as $15,793 in investments in debt securities. We view this total of $23,165 as readily available sources of liquidity in the event needed to advance our existing strategy, and/or pursue an alternative strategy. As such, we anticipate that our current capital resources, when considering expected losses from operations, will be sufficient to fund our operations for the foreseeable future.
Current wording
However, as of September 30, 2024, we had $4,895 in cash and restricted cash, as well as $18,064 in investments in debt securities. We view this total of $22,959 as readily available sources of liquidity in the event needed to advance our existing strategy, and/or pursue an alternative strategy. As such, we anticipate that our current capital resources, when considering expected losses from operations, will be sufficient to fund our operations for the foreseeable future.