Liquidmetal Technologies Inc (LQMT)

[joshuaeyu]

“Dollar-wise, I believe we will, in the future make more revenues off of Eontecs IP than our own.”

It is a very interesting point to stir up.

Let’s try to look at the “potential revenue stream” in both perspective.

Let’s loosely define Eontec IP being following in Western market

1. DC105s (industrial and commercial Liquidmetal). Not FDA approved yet hence no medical market
2. Eontec branded LK machine(s) which cannot except Materion ingot.
3. Magnesium for auto market
4. Biodegradable Magnesium for medical market

LQMT IP being following in Western market:

1. LM105 for non CE market (limited to medical only due to cost)
2. LiquidMetal Brand for US label (but can export worldwide including CE market).

By that definition, I would argue LQMT IP will produce more revenue in the near term (for CE) until the auto industry adoption (sorry Tesla is not volume house but a great short term jolt to PPS).

Let’s do a quick and dirty calculation of what LiquidMetal Brand royalty can be for CE (in particular cell phone)

There are 2 billion cell phones annual volume worldwide.

Cell phone frame/case is $50 each or $100 billion annual revenue (for the industry to share).

Let’s say LiquidMetal penetrated 20% of such market hence $20 billion market.

Let’s say Foxconn alike CM owns that piece of the pie and willing to pay 5% royalty to LQMT-CHINA hence $1 billion market for LQMT-CHINA.

Since LiquidMetal is subsidiary of LQMT-CHINA and they takes 10% brand royalty hence $100 millions.

With $100 millions revenue for licensing business which command 90% gross margin It translates into $90 million income.

PE of 55 will give market cap of 5 billion or $5 per share.

I will leave the LF revenue potential calculation to others to add to the above PPS.

Is LF contract announcement (or not) that important?

Or is LiquidMetal adoption (or not) to CE market the ultimate bet (gamble)?