Liquidmetal's Losses Widen Amid Plunging Product Sales

TL;DR

**LQMT's revenue is in freefall, and their losses are accelerating; this stock is a speculative bet on a turnaround that isn't materializing.**

AI Summary

Liquidmetal Technologies Inc. (LQMT) reported a significant decline in product revenue for the three months ended September 30, 2025, falling to $28,000 from $316,000 in the prior year, a decrease of 91.1%. Total revenue also decreased substantially to $37,000 from $316,000, despite the introduction of $9,000 in licensing and royalties revenue. The company's net loss widened to $552,000 for the quarter, compared to a net loss of $441,000 in the same period last year, representing a 25.2% increase in loss. For the nine months ended September 30, 2025, the net loss grew to $1,645,000 from $1,015,000 in 2024, a 62.1% increase. Operating expenses increased, with selling, marketing, general and administrative expenses rising to $961,000 for the quarter from $904,000 in 2024. Cash and cash equivalents increased to $8,490,000 as of September 30, 2025, from $6,006,000 at December 31, 2024, primarily due to proceeds from sales of debt securities totaling $9,313,000. The company continues to face challenges with its history of operating losses and the uncertainty of achieving sustained profitability, as highlighted in its risk factors.

Why It Matters

This filing reveals a concerning trend for Liquidmetal Technologies, with product revenue plummeting by over 90% year-over-year for the quarter. For investors, this signals a significant challenge in commercializing their proprietary amorphous alloys, raising questions about market adoption and competitive viability against incumbent materials like titanium and stainless steel. Employees might face job insecurity if revenue declines persist, impacting morale and talent retention. Customers could see reduced product development or support if the company's financial health deteriorates. The broader market for advanced materials will watch if Liquidmetal can overcome these hurdles, as its technology promises superior performance but struggles with market penetration.

Risk Assessment

Risk Level: high — The company reported a 91.1% decrease in product revenue for the three months ended September 30, 2025, dropping to $28,000 from $316,000. This significant revenue decline, coupled with a widening net loss of $1,645,000 for the nine months ended September 30, 2025 (up from $1,015,000 in 2024), indicates severe operational challenges and a high risk of continued unprofitability.

Analyst Insight

Investors should exercise extreme caution and consider divesting, given the drastic decline in product revenue and increasing net losses. The company's inability to generate substantial sales from its core technology suggests a challenging path to profitability, making it a high-risk investment.

Financial Highlights

debt To Equity

0.05

revenue

$37,000

operating Margin

-2554.1%

total Assets

$29,135,000

total Debt

$1,408,000

net Income

-$552,000

eps

N/A

gross Margin

54.1%

cash Position

$8,490,000

revenue Growth

-88.3%

Revenue Breakdown

Key Numbers

• $28,000 — Product Revenue (Q3 2025) (Decreased 91.1% from $316,000 in Q3 2024)
• $37,000 — Total Revenue (Q3 2025) (Decreased from $316,000 in Q3 2024)
• $552,000 — Net Loss (Q3 2025) (Increased 25.2% from $441,000 in Q3 2024)
• $1,645,000 — Net Loss (YTD Sept 2025) (Increased 62.1% from $1,015,000 in YTD Sept 2024)
• $961,000 — SG&A Expenses (Q3 2025) (Increased from $904,000 in Q3 2024)
• $8,490,000 — Cash and Cash Equivalents (Increased from $6,006,000 at Dec 31, 2024)
• 917,285,149 — Common Shares Outstanding (As of November 13, 2025)
• $9,313,000 — Proceeds from sales of debt securities (For the nine months ended September 30, 2025, contributing to cash increase)

Key Players & Entities

• LIQUIDMETAL TECHNOLOGIES INC (company) — Registrant
• SEC (regulator) — Securities and Exchange Commission
• $28,000 (dollar_amount) — Product revenue for Q3 2025
• $316,000 (dollar_amount) — Product revenue for Q3 2024
• $552,000 (dollar_amount) — Net loss for Q3 2025
• $441,000 (dollar_amount) — Net loss for Q3 2024
• $1,645,000 (dollar_amount) — Net loss for nine months ended Sept 30, 2025
• $1,015,000 (dollar_amount) — Net loss for nine months ended Sept 30, 2024
• $961,000 (dollar_amount) — Selling, marketing, general and administrative expenses for Q3 2025
• $8,490,000 (dollar_amount) — Cash and cash equivalents as of September 30, 2025

FAQ

Risk Factors

• History of Operating Losses [high — financial]: The company has a history of operating losses and has not achieved sustained profitability. For the nine months ended September 30, 2025, the net loss was $1,645,000, an increase from $1,015,000 in the prior year period.
• Dependence on Product Revenue [high — operational]: Product revenue has seen a dramatic decrease, falling to $28,000 in Q3 2025 from $316,000 in Q3 2024. This 91.1% decline highlights a significant challenge in core business operations.
• Increasing Net Loss [high — financial]: The net loss for the third quarter of 2025 widened to $552,000, a 25.2% increase compared to $441,000 in the same period last year. This trend indicates deteriorating financial performance.
• Rising Operating Expenses [medium — operational]: Selling, marketing, general and administrative expenses increased to $961,000 in Q3 2025 from $904,000 in Q3 2024, further pressuring profitability despite declining revenues.
• Uncertainty of Future Profitability [high — financial]: The company explicitly states uncertainty regarding its ability to achieve sustained profitability. This lack of a clear path to profitability poses a significant risk to investors.

Industry Context

Liquidmetal Technologies operates in the advanced materials sector, focusing on amorphous metals. The industry is characterized by innovation and the pursuit of novel applications, but also faces challenges in scaling production and achieving widespread market adoption. Competition can come from traditional materials and other emerging technologies.

Regulatory Implications

As a publicly traded company, LQMT is subject to SEC regulations and reporting requirements. There are no specific new regulatory implications highlighted in this filing, but adherence to financial reporting standards remains critical.

What Investors Should Do

1. Monitor revenue diversification efforts
2. Analyze expense management strategies
3. Evaluate cash burn rate and funding sources
4. Assess the viability of the core technology and market adoption

Key Dates

• 2025-09-30: End of Q3 2025 — Reported significant revenue decline and widening net loss, with increased cash position due to debt security sales.
• 2024-09-30: End of Q3 2024 — Prior period comparison for Q3 2025 results, showing a substantial decrease in product revenue and total revenue.
• 2025-12-31: End of Fiscal Year 2024 — Baseline for cash and cash equivalents increase, which rose from $6,006,000 to $8,490,000 by September 30, 2025.

Glossary

Accumulated deficit

The total net losses of a company since its inception, minus any net profits. It represents a deficit in the company's equity. (Indicates the company has historically operated at a loss, with an accumulated deficit of $279,897,000 as of September 30, 2025.)

Cost of sales

The direct costs attributable to the production or purchase of the goods sold by a company. (Cost of sales decreased significantly from $239,000 in Q3 2024 to $17,000 in Q3 2025, mirroring the drop in product revenue.)

Selling, marketing, general and administrative expenses

Expenses incurred by a company for sales, marketing, and the overall administration of the business. (These expenses increased to $961,000 in Q3 2025 from $904,000 in Q3 2024, contributing to the wider net loss.)

Warrants

Financial instruments that give the holder the right, but not the obligation, to purchase a company's stock at a specific price before a certain expiration date. (Warrants are listed as a component of shareholders' equity with a value of $18,179,000, unchanged from December 31, 2024.)

Year-Over-Year Comparison

Compared to the prior year's third quarter, Liquidmetal Technologies Inc. has experienced a severe contraction in revenue, with product revenue dropping 91.1% to $28,000 and total revenue falling to $37,000. This revenue decline has led to a wider net loss of $552,000, a 25.2% increase from the previous year. While cash reserves have improved to $8.49 million, this is primarily due to financing activities rather than operational success, and operating expenses have also seen an increase.

Filing Documents

• lqmt20250930_10q.htm (10-Q) — 1246KB
• ex_880776.htm (EX-31.1) — 9KB
• ex_880777.htm (EX-32.1) — 3KB
• 0001437749-25-034818.txt ( ) — 5317KB
• lqmt-20250930.xsd (EX-101.SCH) — 51KB
• lqmt-20250930_cal.xml (EX-101.CAL) — 44KB
• lqmt-20250930_def.xml (EX-101.DEF) — 323KB
• lqmt-20250930_lab.xml (EX-101.LAB) — 282KB
• lqmt-20250930_pre.xml (EX-101.PRE) — 353KB
• lqmt20250930_10q_htm.xml (XML) — 715KB

– Financial Information

PART I – Financial Information

– Financial Statements

Item 1 – Financial Statements 4 Unaudited Consolidated Balance Sheets 4 Unaudited Consolidated Statements of Operations 5 Unaudited Consolidated Statements of Stockholders ' Equity 6 Unaudited Consolidated Statements of Comprehensive Income (Loss) 7 Unaudited Consolidated Statements of Cash Flows 8 Notes to Unaudited Consolidated Financial Statements 9

– Management ' s Discussion and Analysis of Financial Condition and Results of Operations

Item 2 – Management ' s Discussion and Analysis of Financial Condition and Results of Operations 18

– Quantitative and Qualitative Disclosures about Market Risk

Item 3 – Quantitative and Qualitative Disclosures about Market Risk 24

– Controls and Procedures

Item 4 – Controls and Procedures 24

– Other Information

PART II – Other Information 25

– Legal Proceedings

Item 1 – Legal Proceedings 25

– Risk Factors

Item 1A – Risk Factors 25

– Unregistered Sales of Equity Securities and Use of Proceeds

Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds 25

– Defaults Upon Senior Securities

Item 3 – Defaults Upon Senior Securities 25

– Mine Safety Disclosures

Item 4 – Mine Safety Disclosures 25

– Other Information

Item 5 – Other Information 25

– Exhibits

Item 6 – Exhibits 25

Signatures

Signatures 26 Table of Contents PART I FINANCIAL INFORMATION

– Financial Statements

Item 1 – Financial Statements LIQUIDMETAL TECHNOLOGIES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS ($ in thousands, except par value and share data) (Unaudited) September 30, December 31, 2025 2024 ASSETS Current assets: Cash and cash equivalents $ 8,490 $ 6,006 Restricted cash - 5 Investments in debt securities- short term 5,563 9,453 Trade accounts receivable, net 78 89 Inventories - 70 Prepaid expenses and other current assets 720 494 Total current assets 14,851 16,117 Investments in debt securities- long term 7,053 6,877 Property and equipment, net 7,127 7,357 Patents and trademarks, net 24 35 Other assets 80 14 Total assets $ 29,135 $ 30,400 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 296 $ 153 Accrued liabilities 210 205 Other current liabilities 902 902 Total current liabilities 1,408 1,260 Total liabilities 1,408 1,260 Shareholders' equity: Common stock, $ 0.001 par value; 1,100,000,000 shares authorized; 917,285,149 and 917,285,149 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively 917 917 Warrants 18,179 18,179 Additional paid-in capital 288,388 288,270 Accumulated deficit ( 279,897 ) ( 278,253 ) Accumulated other comprehensive income 221 107 Non-controlling interest in subsidiary ( 81 ) ( 80 ) Total shareholders' equity 27,727 29,140 Total liabilities and shareholders' equity $ 29,135 $ 30,400 The accompanying notes are an integral part of the unaudited consolidated financial statements. 4 Table of Contents LIQUIDMETAL TECHNOLOGIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS ($ in thousands, except share and per share data) (unaudited) (Unaudited) Three months ended September 30, Nine months ended September 30, 2025 2024 2025 2024 Revenue: Products $ 28 $ 316 $ 599 $ 731 Licensing and royalties 9 - 9 - Total

View Full Filing

View this 10-Q filing on SEC EDGAR