Liquidmetal Technologies Inc (LQMT)

[PatentGuy1]

I'm a sucker for the technology potential and intellectual portfolio that through Apple has been built and paid for. ... If Lugee can't make this happen then someone will end up owning the IP portfolio and this company goes belly up.

The IP portfolio that you are referring to has already been assigned to Crucible Intellectual Property, LLC. I believe that Crucible is a shell company that isn't a wholly owned subsidiary of LQMT. I believe that Apple insisted on this to protect Apple's interest in the IP.

In the MTA, Crucible is referred to as "LMT-SPE". Read MTA, section 6, entitled "LMT-SPE Existence and Separateness," and look at all of the limitations on what LMT-SPE can and cannot do. Some of the restrictions are as follows:

(f) LMT-SPE shall not create, incur, assume or permit to exist any claim of ownership or Lien on or with respect to the LMT Technology or with respect to its other properties or assets (whether now owned or hereafter acquired) except for the Liens in favor of Apple;

(g) LMT-SPE shall not become a party to any agreement, note, indenture or instrument ...

(j) LMT-SPE shall not make any investment in, or make or accrue loans or advances of money to, any person, corporation, firm, joint venture, partnership, limited liability company, association, enterprise, trust or other entity or organization ("business enterprise"), including, without limitation, any director or officer or employee of LMT-SPE, LMT or any direct or indirect subsidiary of LMT, through the direct or indirect lending of money, holding of securities or otherwise.

IMO, Crucible is structured in such a way so as to make it virtually impossible for it to go bankrupt, and I believe that if LQMT goes bankrupt the IP portfolio assigned to Crucible is unaffected.