Always do LQMT DD regarding MFG. & sales. Do not be misled by speculative guesses which have zero basis of fact or truth. Part 2. the strategies:
“Our Strategy
In July 2019, we adopted a restructuring plan pursuant to which we elected to wind down our manufacturing operations at our Lake Forest, CA facility and proceeded to outsource the manufacture of parts utilizing our technology through domestic and international manufacturing partners (the “2019 Restructuring Plan”). In connection with the 2019 Restructuring Plan, we reduced management staff and shifted our business strategy from internal manufacture of parts and products for customers toward the use and reliance of outsourced manufacturers, including Dongguan Yihao Metals Materials Technology Co., Ltd. (“Yihao”), a China-based, metal manufacturing company that is an affiliate of our largest beneficial stockholder, Chairman, Professor Lugee Li.
The key elements of our strategy include:
Focusing Our Marketing Activities on Select Products with Optimized Gross-Margins. We have focused and continue to focus our marketing activities on select products with optimized gross margins for the long term. This strategy is designed to align our product development initiatives with our processes and cost structure, and to reduce our exposure to more commodity-type product applications that are prone to unpredictable demand and fluctuating pricing. Our focus is primarily on products that possess design features that take advantage of our physical properties and manufacturing advantages of our technology and that command a price commensurate with the performance advantages of our alloys. In addition, we will continue to engage in prototype manufacturing for products that will ultimately be licensed to or manufactured by third-parties.
Pursuing Strategic Partnerships in Order to More Rapidly Develop and Commercialize Products. We have and continue to actively pursue and support strategic partnerships that will enable us to leverage the resources, strength, and technologies of other companies in order to more rapidly develop and commercialize products. These partnerships may include licensing transactions in which we license full commercial rights to our technology in a specific application area, or they may include transactions of a more limited scope in which, for example, we outsource manufacturing activities or grant limited licensing rights. We believe that utilizing such a partnering strategy will enable us to reduce our working capital burden, better fund product development efforts, better understand customer adoption practices, leverage the technical and financial resources of our partners, and more effectively handle product design and process challenges.”
Source: LQMT 10K.
Good luck to all in LQMT.
Wish TC luck.
Outsiders may or may not agree with the LQMT strategy for contracting. But it’s the only one they state! Anything else is pure BS!!!
