Liquidmetal Technologies Stock

Liquidmetal Technologies, Inc. operates as a materials technology company that develops and commercializes products made from amorphous alloys.

The company’s Liquidmetal family of alloys consists of a variety of proprietary bulk alloys and composites that utilize the advantages offered by amorphous alloy technology. The company designs, develops, and sells custom products and parts from bulk amorphous alloys to customers in various industries. The company also partners with third-party manufacturers and licensees to develop and commercializes Liquidmetal alloy products.

Applications for Liquidmetal Alloys

Medical Devices

The company engages in product development efforts relating to various medical devices that could be made from bulk Liquidmetal alloys. The company’s ongoing emphasis has been on minimally invasive surgical instrument applications for Liquidmetal alloys. These include, but are not limited to, specialized blades, clamps, tissue suturing components, tissue manipulation devices and orthopedic instruments utilized for implant surgery procedures, dental devices, and general surgery devices.

Automotive Components

The company engages in product development efforts relating to various automotive components that could be made from bulk Liquidmetal alloys. The unique properties of bulk Liquidmetal alloys provide the combination of long-lasting surface finish, corrosion resistance, strength, and precision required by most automotive applications, especially for the EV space.

Components for Non-Consumer Electronic Products

The company designs, develops and supplies components for non-consumer electronic devices utilizing its bulk Liquidmetal alloys and its alloys offer enhanced performance and design benefits for these components in certain applications.

On August 5, 2010, the company entered into a license transaction with Apple Inc. (Apple) pursuant to which, for a one-time, upfront license fee, it granted to Apple a perpetual, worldwide, fully-paid, exclusive license to commercialize its intellectual property in the field of consumer electronic products, as defined in the license agreement.

Strategy

The key elements of the company strategy include focusing its marketing activities on select products; pursuing strategic partnerships in order to more rapidly develop and commercialize products; advancing the Liquidmetal brand; and sporting goods and leisure products.

Sporting Goods and Leisure Products

The company is developing a variety of applications for Liquidmetal alloys in the sporting goods and leisure products area.

Licensing Transactions

Eontec License Agreement

On March 10, 2016, in connection with the 2016 Purchase Agreement, the company entered into a Parallel License Agreement (the License Agreement) with DongGuan Eontec Co., Ltd., a Hong Kong corporation (Eontec) pursuant to which it each entered into a cross-license of its respective technologies.

The License Agreement provides for the cross-license of certain patents, technical information, and trademarks between the company and Eontec. In particular, the company granted to Eontec a paid-up, royalty-free, perpetual license to its patents and related technical information to make, have made, use, offer to sell, sell, export, and import products in certain geographic areas outside of North America and Europe, and Eontec granted to it a paid-up, royalty-free, perpetual license to Eontec’s patents and related technical information to make, have made, use, offer to sell, sell, export, and import products in certain geographic areas outside of specified countries in Asia. The license granted by the company to Eontec is exclusive (including to the exclusion of it) in the countries of Brunei, Cambodia, China (P.R.C and R.O.C.), East Timor, Indonesia, Japan, Laos, Malaysia, Myanmar, the Philippines, Singapore, South Korea, Thailand, and Vietnam. The license granted by Eontec to the company is exclusive (including to the exclusion of Eontec) in North America and Europe. The cross-licenses are non-exclusive in geographic areas outside of the foregoing exclusive territories.

Eutectix Business Development Agreement

On January 31, 2020, the company entered into a Business Development Agreement (the Agreement) with Eutectix, LLC, a Delaware limited liability company (Eutectix), which provides for collaboration, joint development efforts, and the manufacturing of products based on its proprietary amorphous metal alloys. Under the Agreement, the company has agreed to license to Eutectix specified equipment owned by it, including two injection molding machines, the Machines, and other machines and equipment, all of which will be used to make products for its customers and Eutectix customers. The licensed machines and equipment represent substantially all of the machinery and equipment held by the company.

Apple License Transaction

On August 5, 2010, the company entered into a license transaction with Apple pursuant to which it contributed substantially all of its intellectual property assets to a newly organized special-purpose, wholly-owned subsidiary, Crucible Intellectual Property, LLC (CIP), CIP granted to Apple a perpetual, worldwide, exclusive license to commercialize such intellectual property in the field of consumer electronic products, as defined in the license agreement, in exchange for a one-time, upfront license fee, and CIP granted back to it perpetual, worldwide, fully-paid, exclusive license to commercialize such intellectual property in all other fields of use.

Swatch Group License

In March 2009, the company entered into a license agreement with Swatch Group, Ltd. (Swatch) under which Swatch was granted a non-exclusive license to its technology to produce and market watches and certain other luxury products. In March 2011, this license agreement was amended to grant Swatch exclusive rights as to watches as against all third parties (including it), but non-exclusive as to Apple.

Liquidmetal Golf License

In January 13, 2022, the company’s Liquidmetal Golf subsidiary entered into a sublicense agreement (LMG Sublicense Agreement) with Amorphous Technologies Japan, Inc. (ATJ), a newly formed Japanese entity that was established by Twins Corporation, a sporting goods company operating in Japan. Under the agreement, LMG granted to ATJ a nonexclusive worldwide sublicense to the company’s amorphous alloy technology and related trademarks to manufacture and sell golf clubs and golf related products.

Intellectual Property

The company’s intellectual property portfolio includes more than 35 owned or licensed U.S. patents relating to the composition, processing, and application of its alloys, as well as more than 30 foreign counterpart patents and patent applications.

The company’s initial bulk amorphous alloy technology was developed by researchers at Caltech. The company has acquired patent rights that provide it with the exclusive right to commercialize amorphous alloys and other amorphous alloy technology developed at Caltech through a license agreement (Caltech License Agreement) with Caltech. In addition to the patents and patent applications that the company licenses from Caltech, it is building a portfolio of its own patents to expand and enhance its technology position. These patents and patent applications primarily relate to various applications of the company’s bulk amorphous alloys and the processing of its alloys. The patents expire on various dates between 2023 and 2039.

Research and Development

The company’s research and development expenses were $55 for the year ended December 31, 2022.

History

Liquidmetal Technologies, Inc. was founded in 1987. The company was incorporated in California in 1987 and reincorporated in Delaware in 2003.