Replies to post #38046 on Liquidmetal Technologies Inc (LQMT)

[riese713]

Per the last conference call - "about 28 prototypes and some of those have ended in non-moving forward", here is the transcript link:

http://seekingalpha.com/article/1611432-liquidmetal-technologies-ceo-discusses-q2-2013-results-earnings-call-transcript?page=4&p=qanda&l=last


"Mark Bruce Raymond – Quest Capital Strategies, Inc

My question you’ve set off some prototypes, what kind of feedback both positive and negative that we receive from that?

Tom Steipp

Basically I think we sent prototypes to, I think we sent-off, I'm going from memory here by about 28 prototypes and some of those have ended in non-moving forward. The bulk of them, the majority of them are obviously continuing to move forward and in some cases we’re on our second or third shipment of parts to those folks as they either modify the design or continue to test themselves. So the answer to that would vary based on the individual prototype that you’re asking about. They are all kind of indifferent stages Mark."

The cash burn has been their salaries/compensation for executives/board members/employees, "marketing", and they have developed some patents on their own (their own R&D).

It is a lot of money to burn with no contracts or new revenue to show.

I sent an e-mail to Liquidmetal asking about what industries/prototypes are still out there in testing and which ones have gone to "non-moving forward". I asked for a PR on this so we had an idea what was going on.

Tony Chung answered me and said he could not answer me privately as this is a public company but this would be addressed in the next conference call sometime in November.

So none of us knows how many prototypes (exact number) is out there, how many have been rejected, and how many are still in the running.

"Remember, Steipp said they were ready to roll, production-wise, one year ago. But the latest PR stated that that was not the case at all. The latest case says that LQMT has only achieved that point within the last few weeks"

You are right on the money with this statement above - and it was why there was no follow through to push the stock higher with the PR announcement. I for one thought as per previous statements they were already "ready to roll, production-wise"...it was a surprise to me to hear that was not true but this has only occurred per the last PR. It seems...I am not alone in this.

[lqmtapple]

Watts,

If Liquidmetal is working with Emgel to get a machine approved, this implies that Liquidmetal is engineering the add-on to the plastic injection molding machines to make them able to process Liquidmetal. I would assume this would mean that Liquidmetal will earn a royalty from every machine that is authorized to use Liquidmetal as we probably hold the design patents for the add-on.

If I'm right, how much will they make from each machine that is converted?

[Liquid_Observer]

2) He agreed with the interviewer that it would be 2 to 3 years before any contracts would develop into revenue. This (simple math) means Oct 2014 thru Oct 2015 would be the starting point for revenues. NOTE: Steipp said, "WE BELIEVE" and not that it was certain. He also said, that this is what investors should be looking for - down the road, emergence of a disruptive technology.

Small correction but that was in response to "Significant Revenue" so in 2014 to 2015 we should have a large amount of revenue.

A better time frame is that he said it takes 1 to 2 years to go from prototype to production. We are about to hit the 2 year anniversary for the first prototypes in December. Which means we should be very close.

Also that was before the iGolf potential license was on the table. In the last CC Steipp promised us an update on iGolf and the spring prototypes this quarter.

3) Steipp, correcting the interviewer, said LQMT did not have just one million and a half in the bank, but that they (Oct 2012) had 8.5 million in the bank and were debt-free. It is now one year later. Steipp further said LQMT will run out of cash at the end of 2013. If correct, Steipp needs to find new funds before Christmas.

Latest update given at the CC was they have enough cash to last them through the end of the first quarter of 2013. Hopefully they get enough cash out of a iGolf license to push that further back and decrease the need for issuing shares for additional cash.

R/

Chris