Liquidmetal Technologies Inc (LQMT)

[joshuaeyu]

Apple License Transaction

On August 5, 2010, the Company entered into a license transaction with Apple Inc. (“Apple”) pursuant to which (i) the Company contributed substantially all of its intellectual property assets to a newly organized special-purpose, wholly-owned subsidiary, called Crucible Intellectual Property, LLC (“CIP”), (ii) CIP granted to Apple a perpetual, worldwide, fully-paid, exclusive license to commercialize such intellectual property in the field of consumer electronic products, as defined in the license agreement, in exchange for a license fee, and (iii) CIP granted back to the Company a perpetual, worldwide, fully-paid, exclusive license to commercialize such intellectual property in all other fields of use.

Under the agreements relating to the license transaction with Apple, the Company was obligated to contribute, to CIP, all intellectual property developed through February 2016. The Company is also obligated to maintain certain limited liability company formalities with respect to CIP at all times after the closing of the license transaction.

This is what is stated in latest 10Q and it has been the same in previous quarter 10Q.

Under the agreements relating to the license transaction with Apple, we were obligated to contribute to CIP all intellectual property that we developed through February 2012 (“Capture Period”). Subsequently, we have amended the Capture Period to extend through February 2016

This is the language posted in 2016 10K. We no longer use the "amend the capture period to extend" in 2017 10K. If indeed it has been auto extended, why wouldn't it be reflected.

We had been educated that MTA is an auto renew entity (FOREVER) as long as Apple stays silent. This seems to contradict.

Let's assume all contribution (started not finished) in the past (pre 2/16) will be grandfathered in.

This clearly indicates Apple will have no obligation to (new) contribute to CIP beyond 2/16. Question is whether or not LQMT will have any obligation to CIP beyond 2/16..

This can become crucial for Eontec assets (which we have assessed to). Currently it is protected under cross license agreement to be limited to non-CE space. What if the cross license agreement is amended to include CE space in the future? One can also ask the significance of the ROFR date of 3/18 and how it might or might not impact the MTA.

It will be great to hear back from all the patent experts here.