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The amorphous atomic structure of bulk alloys enables them to overcome certain performance limitations caused by inherent weaknesses in crystalline atomic structures, thus facilitating performance and processing characteristics superior in many ways to those of their crystalline counterparts.
−Removed: We believe our alloys and the molding technologies we employ can result in components for many applications that exhibit exceptional dimensional control and repeatability that rivals precision machining, excellent corrosion resistance, brilliant surface finish, high strength, high hardness, high elastic limit, alloys that are non-magnetic, and the ability to form complex shapes common to the injection molding of plastics.
+Added: We believe the alloys and the molding technologies we employ can result in components for many applications that exhibit exceptional dimensional control and repeatability that rivals precision machining, excellent corrosion resistance, brilliant surface finish, high strength, high hardness, high elastic limit, alloys that are non-magnetic, and the ability to form complex shapes common to the injection molding of plastics.
All of these characteristics are achievable from the molding process, so design engineers often do not have to select specific alloys to achieve one or more of the characteristics as is the case with crystalline materials.
6 unchanged sentences
Our Internet website address is www.liquidmetal.com and all of our filings with the Securities and Exchange Commission (“SEC”) are available free of charge on our website.
+Added: The SEC maintains a website at http://www.sec.gov , which contains reports, proxy and information statements, and other information regarding the Company, and other issuers that file electronically with the SEC.
Our Technology
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In connection with the 2019 Restructuring Plan, we have shifted our business strategy from internal manufacture of parts and products for customers toward the use and reliance of outsourced manufacturers, which will initially be Dongguan Yihao Metals Materials Technology Co., Ltd.
−Removed: (“Yihao”), a China-based company that is an affiliate of our largest beneficial stockholder, CEO and Chairman, Professor Lugee Li.
+Added: (“Yihao”), a China-based company in which our largest beneficial stockholder, CEO and Chairman, Professor Lugee Li, holds a material, indirect, equity interest.
+Added: We will also seek to develop other manufacturers, both global and domestic, to aid in the further advancement of our technology and operations.
The key elements of our strategy include:
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(“Apple”) pursuant to which, for a one-time license fee, we granted to Apple a perpetual, worldwide, fully-paid, exclusive license to commercialize our intellectual property in the field of “consumer electronic” products, as defined in the license agreement.
−Removed: As a result, we will not pursue application of our bulk Liquidmetal alloys in the consumer electronics field.
−Removed: However, we continue to work with Apple to develop and advance research and development in the amorphous alloy space to benefit both consumer and non-consumer electronics fields.
+Added: As a result, our ability to freely pursue applications of our bulk Liquidmetal alloys in the consumer electronics field is limited.
+Added: We will continue to identify and pursue opportunities in the consumer electronics field that do not violate our licence agreement with Apple.
+Added: Additionally, we continue to work with Apple to develop and advance research and development in the amorphous alloy space to benefit both consumer and non-consumer electronics fields.
For more information regarding our transaction with Apple, see “ – Licensing Transactions” below.
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Eontec License Agreement
−Removed: On March 10, 2016, in connection with the 2016 Purchase Agreement, we entered into a Parallel License Agreement (the “License Agreement”) with DongGuan Eontec Co., Ltd., a Hong Kong corporation (“Eontec”) pursuant to which we each entered into a cross-license of our respective technologies.
+Added: On March 10, 2016, in connection with the Securities Purchase Agreement (the “2016 Purchase Agreement”) with Liquidmetal Technology Limited, a Hong Kong Company, we entered into a Parallel License Agreement (the “License Agreement”) with DongGuan Eontec Co., Ltd., a Hong Kong corporation (“Eontec”) pursuant to which we each entered into a cross-license of our respective technologies.
The License Agreement provides for the cross-license of certain patents, technical information, and trademarks between us and Eontec.
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This includes but is not limited to developing technologies to reduce the cost of amorphous alloys, working on die cast machine technology platforms to pursue broader markets, sharing knowledge to broaden our intellectual property portfolio, and utilizing Eontec’s volume production capabilities as a third party contract manufacturer.
−Removed: In March 2017, we signed contracts with Eontec to purchase two hot-crucible amorphous metal molding machines (“Machines”) at a total purchase price of $780,000.
−Removed: The Machines were delivered to our new manufacturing facility located in Lake Forest, CA in April 2017 and were operational during the fourth quarter of 2017.
Eutectix Business Development Agreement
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We are also obligated to maintain certain limited liability company formalities with respect to CIP at all times after the closing of the license transaction.
−Removed: Other License Transactions
−Removed: On January 31, 2012, we entered into a Supply and License Agreement for a five year term with Engel Austria Gmbh (“Engel”) whereby Engel was granted a non-exclusive license to manufacture and sell injection molding machines to our licensees.
−Removed: On December 6, 2013, we and Engel entered into an Exclusivity Agreement for a 10 year term whereby we agreed, with certain exceptions and limitations, that we and our licensees would purchase amorphous alloy injection molding machines exclusively from Engel.
+Added: Other Material License Transactions
Our Liquidmetal Golf subsidiary has the exclusive right and license to utilize our Liquidmetal alloy technology for purposes of golf equipment applications.
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Research and Development
−Removed: Through the year-ended December 31, 2019, we have engaged in ongoing research and development programs that were driven by the following key objectives:
+Added: During the year-ended December 31, 2020, we have engaged in ongoing research and development programs that were driven by the following key objectives:
Enhance Material Processing and Manufacturing Efficiencies.
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We plan to continue research and development of processes and compositions that will decrease our cost of making products from Liquidmetal alloys.
−Removed: Optimize Existing Alloys and Develop New Compositions.
−Removed: We believe that one of the key technology drivers of our business will continue to be our proprietary alloy compositions.
−Removed: We plan to continue research and development on new alloy compositions to reduce the cost of our proprietary alloy compositions, as well as to generate a broader class of amorphous alloys with a wider range of specialized performance characteristics.
−Removed: We believe that our ability to optimize our existing alloy compositions, and reduce their costs, will enable us to better tailor our alloys to our customers’ specific application requirements.
−Removed: Current efforts also include collaboration with Eontec, under the terms of the License Agreement, in developing alternative, low-cost, alloy compositions.
Develop New Applications.
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Our research and development expenses for the years ended December 31, 2020 and 2019 were $0.1 million and $1.3 million, respectively.
−Removed: As a result of the 2019 Restructuring Plan, and associated reductions in employee headcount, we expect that research and development efforts will be significantly reduced in prospective periods.
−Removed: Raw Materials
−Removed: Liquidmetal alloy compositions are comprised of many elements, many of which are generally available commodity products.
−Removed: While we believe that each of these raw materials is readily available in sufficient quantities from multiple sources on commercially acceptable terms, we continue to seek opportunities to secure stocks of essential elements in advance to manage lead-times and cost.
−Removed: Due to our inherent dependency on these alloy compositions for the manufacture of Liquidmetal products, any substantial increase in the price or interruption in the supply of these materials could have an adverse effect on our business.
+Added: As a result of the 2019 Restructuring Plan, these activities have been significantly reduced.
+Added: Nonetheless, the Company will continue to pursue these objectives as a means of enhancing brand awareness and the benefits of Liquidmetal alloys.
Manufacturing
−Removed: During 2017, we purchased and relocated to a new manufacturing facility, with a plan for the expansion of our ability to (i) provide on-site manufacturing of customer products, (ii) provide our customers and strategic partners a venue to inspect, collaborate, and demonstrate the latest developments of our alloy composition development and manufacturing processes, and (iii) provide multiple platforms for manufacturing customer products.
−Removed: As a result of the 2019 Restructuring Plan, the Company will discontinue manufacturing operations in this facility.
−Removed: Going forward, our current manufacturing strategy is to partner with global companies that are contract manufacturers and alloy producers.
+Added: Our current manufacturing strategy is to partner with global companies that are contract manufacturers and alloy producers.
We seek third party companies with proven track records of success who can gain specialized skills and knowledge of our alloys through close collaborations with our team of engineers.
We believe that partnering with these global companies will allow us to forgo the capital intensive requirements of maintaining our own large scale manufacturing facilities and allow us to grow the number of applications for the technology much faster than could be accomplished on our own.
+Added: Our initial manufacturing partner is Yihao, although we are currently working with Eutectix to develop U.S.
+Added: manufacturing capabilities, inclusive of a viable supply of our alloys.
+Added: During 2020, there was one major customer, that accounted for 82% of our revenue.
During 2019, there were five major customers, who together accounted for 83% of our revenue.
−Removed: During 2018, there were three major customers, who together accounted for 66% of our revenue.
+Added: As of December 31, 2020, one customer represented 99%, or $270,000, of the total outstanding trade accounts receivable.
As of December 31, 2019, two customers represented 90%, or $280,000, of the total outstanding trade accounts receivable.
−Removed: As of December 31, 2018, three customers represented 90%, or $108,000, of the total outstanding trade accounts receivable.
In the future, we expect that a significant portion of our revenue may continue to be concentrated in a limited number of customers, even if our bulk alloys business grows.
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Because we rely on our customers to market and sell finished goods that incorporate our components or products, our success will depend in part on the ability of our customers to effectively market and sell their own products and compete in their respective markets.
−Removed: Because of the minimal lead-time associated with orders of bulk alloy parts, we generally do not carry a significant backlog.
−Removed: The backlog as of any particular date gives no indication of actual sales for any succeeding period.
Sales and Marketing
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.