Anastas Gegov

Liquidmetal Technologies Inc (OTCMKTS:LQMT) Sliding Steeper After Q1 Results

by Anastas Gegov May 7, 2015

So far, 2015 has been ups and downs for the stock of Liquidmetal Technologies Inc (OTCMKTS:LQMT, LQMT message board). There were times at which the news coming in from company HQ were enough to provide a push for the stock’s price, as well as for the volume, but they were short-lived and followed by long periods of descent.

 

LQMT was hovering around the $0.13 per share mark throughout the first half of last month, but somehow managed to begin climbing to 15 cents for no apparent reason. It pushed its way to $0.1569 on May 4, but corrected the following day. Meanwhile, we got to see the Q1 report for Q1 of this year, which was filed on Tuesday and contained the following numbers of prime interest in its balance sheet.

 

  • cash: $6.2 million
  • current assets: $8.6 million
  • current liabilities: $901 thousand
  • total liabilities: $3.92 million
  • quarterly revenues: $23 thousand
  • quarterly net loss: $2.47 million

 

And although we see that LQMT has a decent amount of cash on hand at its disposal, we also see that the revenue has shrunk by 85% compared to the same period last year. The company has also managed to burn through nearly $4 million of the cash on hand they had in just Q1 of this year.

 

The operating expenses have stayed nearly the same, which leads us to think that the management might be receiving big compensations while revenues are going down, just like they did last year. As we mentioned in our previous article on LQMT, the compensations that most executives received in 2014 was around double that of the previous year while the revenues had shrunk by 40%.

 

Only the compensation for Mr. Thomas Steipp, CEO of LQMT was $1,739,469, nearly three times bigger than the revenue the company he is heading generated throughout the year. Meanwhile, the company stock lost another 11.49% of its value yesterday and closed the session at $0.131 with a total of 2.59 million traded shares that generated $349 in daily dollar volume.

 

Considering this, we can say that LQMT remains a risky investment choice and you should be sure to do your due diligence before putting any money on the line.

Comments 2

1. Guest
May 08, 2015, 04:24PM

Quotes You forgot to say that management of LQMT does not listen to shareholders or the advise they give on executive compensation.

2. Guest
May 07, 2015, 01:21PM

Quotes You forgot to mention the compensation package for 2015 was voted down by shareholders last month.

Reference their most recent 8K SEC filing.

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