Liquidmetal Technologies Inc (LQMT)

[jrs5]

The reason for the impairment charge is that they fully depreciated the assets (for tax purposes) within a year or two of purchase. This is common practice in capital intensive industries as the recent tax law changes allow this. Our company does it. So they purchased $1.8M worth of machinery and fully wrote it off. They can't sell it for that price, hence the impairment charge. It is really not that big a deal and to be expected if they are liquidating the machinery to make space to lease.