Come to think of it - if MTRN did sell anything to LQMT - LQMT has to be stockpiling some inventory, even if they did not sell or manufacture anything yet. That's an excellent point you're making re: current Q sales of Be and composites. Inventory isn't charged off as Cost of Sales until it's made into a sold product. So if LQMT has purchased product for future use in manufacture, you should see their inventory levels rise on the balance sheet for the current Q since it coincides with MTRN's quarters. It will be interesting to see if inventory levels rise at LQMT during this Q. Honestly, I doubt it, but it is a measure to look for. However, if VPC is doing the manufacture of the alleged customers they mentioned, then they would likely be carrying the inventory, but that arrangement seems untenable for VPC to still being able to manufacture for LQMT. Regardless, my point is not to totally eliminate that inventory is being shipped to VPC and carried on their financials until some kind of CLM is found.
In the royalty arrangement, there will obviously almost be no inventory carried by LQMT at all as the customer would be buying the inventory to manufacture.
Yeah, just as I thought, VPC was carrying inventory. LQMT only picks up costs to manufacture from VPC on their P&L for whatever small amount of product or prototypes they were able to sell. LQMT currently has NO inventory at all. From most recent Q - 6/30/14 and 12/31/13 comparative (Inventory would be listed as a Current Asset):
Current assets:
6/30/14 12/31/13
Cash $13,894,000 $2,062,000
Trade accounts receivable, net of allowance for doubtful accounts
6/30/14 68,000 12/31/13 215,000
Prepaid expenses and other current assets
6/30/14 234,000 12/31/13 412,000
Total current assets
6/30/14 $14,196,000 12/31/13 $2,689,000
Boy you been a naughty girl, you let your knickers down
I am the zombie, they are the zombies
I am the walrus, goo goo goo joob
