What changed in this filing

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Item 1. Financial Statements

2024-08-13 compared with 2024-05-20 · 149 added, 82 removed, 460 unchanged (33% of the section changed)

2 unchanged sentences

AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

UNAUDITED CONSOLIDATED BALANCE SHEETS

($ in thousands, except par value and share data)

(Unaudited) (Unaudited)

Current assets:

17 unchanged sentences

Deferred revenue

Other current liabilities 902 902

Total current liabilities

Other long-term liabilities

Total liabilities

15 unchanged sentences

$ 31,276 $ 31,836

The accompanying notes are an integral part of the consolidated financial statements.

The accompanying notes are an integral part of the unaudited consolidated financial statements.

LIQUIDMETAL TECHNOLOGIES, INC.

AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

($ in thousands, except share and per share data)

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

Licensing and royalties

11 unchanged sentences

Per common share basic and diluted:

Net loss per common share attributable to Liquidmetal Technologies shareholders, basic

Net loss per common share attributable to Liquidmetal Technologies shareholders, diluted

Number of weighted average shares - basic

Number of weighted average shares - diluted

The accompanying notes are an integral part of the consolidated financial statements.

Net loss per common share attributable to Liquidmetal Technologies shareholders, basic and diluted

Number of weighted average shares - basic and diluted

The accompanying notes are an integral part of the unaudited consolidated financial statements.

LIQUIDMETAL TECHNOLOGIES, INC.

AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS ’ EQUITY

UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

($ in thousands, except share and per share data)

Three Months Ended

Six Months Ended

Other comprehensive income (loss), net of tax

Net unrealized gains (losses) on available-for-sale securities

Other comprehensive income (loss), net of tax

Comprehensive loss

Comprehensive loss attributable to noncontrolling interests

Comprehensive loss attributable to Liquidmetal Technologies shareholders

The accompanying notes are an integral part of the unaudited consolidated financial statements.

LIQUIDMETAL TECHNOLOGIES, INC.

AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS ’ EQUITY

($ in thousands, except per share data)

comprehensive

1 unchanged sentence

Balance - December 31, 2023

- 917,285,149 $ 917 $ 18,179 $ 288,126 $ ( 276,743 ) $ 190 $ ( 79 ) $ 30,590

Stock-based compensation

- - - - 63 - - - 63

- - - - - ( 574 ) - - ( 574 )

Other comprehensive loss

Balance - March 31, 2024

- - - - - - ( 5 ) - ( 5 )

Balance - June 30, 2024 (unaudited)

- 917,285,149 $ 917 $ 18,179 $ 288,189 $ ( 277,317 ) $ 185 $ ( 79 ) $ 30,074

Balance - December 31, 2022

- 917,285,149 $ 917 $ 18,179 $ 288,013 $ ( 274,696 ) $ ( 296 ) $ ( 78 ) $ 32,039

Stock-based compensation

- - - - 72 - - - 72

- - - - - ( 1,297 ) - - ( 1,297 )

Other comprehensive loss

- - - - - - 237 - 237

Balance - June 30, 2023 (unaudited)

- 917,285,149 $ 917 $ 18,179 $ 288,085 $ ( 275,993 ) $ ( 59 ) $ ( 78 ) $ 31,051

Balance – March 31, 2024

The accompanying notes are an integral part of the consolidated financial statements.

LIQUIDMETAL TECHNOLOGIES, INC.

AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

($ in thousands, except share and per share data)

Three Months Ended March 31,

Other comprehensive income (loss), net of tax

Net unrealized gains (losses) on available-for-sale securities

Other comprehensive income (loss), net of tax

Comprehensive loss

Comprehensive loss attributable to noncontrolling interests

Comprehensive loss attributable to Liquidmetal Technologies shareholders

The accompanying notes are an integral part of the consolidated financial statements.

- 917,285,149 $ 917 $ 18,179 $ 288,151 $ ( 277,057 ) $ 198 $ ( 79 ) $ 30,309

Stock-based compensation

- - - - 38 - - - 38

- - - - - ( 260 ) - - ( 260 )

Other comprehensive loss

- - - - - - ( 13 ) - ( 13 )

Balance - June 30, 2024 (unaudited)

- 917,285,149 $ 917 $ 18,179 $ 288,189 $ ( 277,317 ) $ 185 $ ( 79 ) $ 30,074

Balance – March 31, 2023

- 917,285,149 $ 917 $ 18,179 $ 288,047 $ ( 275,283 ) $ ( 132 ) $ ( 78 ) $ 31,650

Stock-based compensation

- - - - 72 - - - 38

- - - - - ( 710 ) - - ( 710 )

Other comprehensive loss

- - - - - - 73 - 73

Balance - June 30, 2023 (unaudited)

- 917,285,149 $ 917 $ 18,179 $ 288,085 $ ( 275,993 ) $ ( 59 ) $ ( 78 ) $ 31,051

The accompanying notes are an integral part of the unaudited consolidated financial statements.

LIQUIDMETAL TECHNOLOGIES, INC.

2 unchanged sentences

($ in thousands, except per share data)

Three Months Ended March 31,

Six Months Ended June 30,

Operating activities:

19 unchanged sentences

Cash paid during the period for:

The accompanying notes are an integral part of the consolidated financial statements.

The accompanying notes are an integral part of the unaudited consolidated financial statements.

LIQUIDMETAL TECHNOLOGIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

For the Three Months Ended March 31, 2024 and 2023

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

For the Six and Three Months Ended June 30, 2024 and 2024

(numbers in thousands, except percentages, share and per share data)

18 unchanged sentences

Basis of Presentation and Recent Accounting Pronouncements

The accompanying unaudited interim consolidated financial statements as of and for the three months ended March 31, 2024 and 2023 have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) for interim financial information and in accordance with the instructions to Form 10 -Q.

The accompanying unaudited interim consolidated financial statements as of and for the three and six months ended June 30, 2024 and 2023 have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) for interim financial information and in accordance with the instructions to Form 10 -Q.

Accordingly, they do not include all of the information and notes required by US GAAP for complete financial statements.

1 unchanged sentence

All intercompany balances and transactions have been eliminated in consolidation.

Operating results for the three months ended March 31, 2024 are not necessarily indicative of the results that may be expected for any future periods or the year ending December 31, 2024.

Operating results for the three and six months ended June 30, 2024 are not necessarily indicative of the results that may be expected for any future periods or the year ending December 31, 2024.

The accompanying unaudited consolidated financial statements should be read in conjunction with the Company's 2023 Annual Report on Form 10 -K filed with the Securities and Exchange Commission (“SEC”) on March 12, 2024.

5 unchanged sentences

The Company evaluates its debt securities with unrealized losses on a quarterly basis for potential other-than-temporary impairments in value.

As a result of this assessment, the Company did not recognize any other-than-temporary impairment losses considered to be credit related for the three months ended March 31, 2024 and 2023.

As a result of this assessment, the Company did not recognize any other-than-temporary impairment losses considered to be credit related for the three and six months ended June 30, 2024 and 2023.

The Company will invest excess funds to maximize investment yield, while maintaining liquidity and minimizing credit risk.

Debt securities are carried at fair value and consist primarily of investments in obligations of the United States Treasury, various U.S.

and foreign corporations, and certificates of deposits.

The Company classifies its investments in debt securities as available-for-sale with all unrealized gains or losses included as part of other comprehensive income.

The Company evaluates its debt securities with unrealized losses on a quarterly basis for potential other-than-temporary impairments in value.

As a result of this assessment, the Company did not recognize any other-than-temporary impairment losses considered to be credit related for the three and six months ended June 30, 2024 and 2023.

Fair Value Measurements

8 unchanged sentences

Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

As of March 31, 2024, the following table represents the Company’s fair value hierarchy for items that are required to be measured at fair value on a recurring basis:

As of June 30, 2024, the following table represents the Company’s fair value hierarchy for items that are required to be measured at fair value on a recurring basis:

Investments in debt securities (short-term)

89 unchanged sentences

government and agency securities

9,508 9,733 9,599 9,838

Corporate bonds

4,111 4,605 4,086 4,552

13,619 14,338 13,685 14,390

Income from these investments totaled $ 243 and $ 100 during the three months ended March, 2024 and 2023, respectively.

Income from these investments totaled $ 274 and $ 517 during the three and six months ended June 30, 2024, respectively, and $ 143 and $ 243 during the three and six months ended June 30, 2023, respectively.

Such amounts are included as a portion of interest and investment income on the Company’s consolidated statements of operations.

Based on the Company’s review of its debt securities that are individually in an unrealized loss position at March 31, 2024, it was determined that the losses were primarily the result current economic factors, impacting all global debt and equity markets, that are the result of global macro events.

Based on the Company’s review of its debt securities that are individually in an unrealized loss position at June 30, 2024, it was determined that the losses were primarily the result current economic factors, impacting all global debt and equity markets, that are the result of global macro events.

The impact of the Company’s investment portfolio is considered to be temporary, rather than a deterioration of overall credit quality.

As of March 31, 2024, all investments are current on their scheduled interest and dividend payments.

As of June 30, 2024, all investments are current on their scheduled interest and dividend payments.

The Company does not intend to sell and it is not likely that the Company will be required to sell these securities prior to recovering their amortized cost.

As such, the Company does not consider these securities to be other-than-temporarily impaired as of March 31, 2024.

As such, the Company does not consider these securities to be other-than-temporarily impaired as of June 30, 2024.

Trade Accounts Receivable

Trade accounts receivable were comprised of the following:

Trade accounts receivable consisted of the following:

Trade accounts receivable

Allowance for doubtful accounts

Trade accounts receivable

Total trade accounts receivable, net

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets were comprised of the following:

Prepaid expenses and other current assets consisted of the following:

Prepaid service invoices

2 unchanged sentences

Interest and other receivables

Inventories were comprised of the following:

Inventories consisted of the following:

Work in progress

1 unchanged sentence

Property and Equipment, net

Property and equipment were comprised of the following:

Property and equipment consist of the following:

Land, building, and improvements

$ 9,610 $ 9,610

Machinery and equipment

1 unchanged sentence

Office equipment, furnishings, and improvements

11,237 11,237

Accumulated depreciation

( 3,647 ) ( 3,569 )

Total property and equipment, net

$ 7,590 $ 7,668

Depreciation expense for three months ended March 31, 2024 and 2023 were $ 78 and $ 78 , respectively.

Depreciation expense for three and six months ended June 30, 2024 was $ 77 and $ 156 , respectively.

Depreciation expense for three and six months ended June 30, 2023 was $ 78 and $ 156 , respectively.

Such amounts were included in selling, marketing, general, and administrative expenses within Company’s consolidated statements of operations.

Patents and Trademarks, net

Patents and trademarks were comprised of the following:

Patents and trademarks consisted of the following:

Purchased and licensed patent rights

2 unchanged sentences

Accumulated amortization

( 2,352 ) ( 2,348 )

Total intangible assets, net

5 unchanged sentences

The Company amortizes capitalized patents and trademarks over an average of 10 -to- 17 -year periods.

Amortization expense for patents and trademarks was $ 4 and $ 6 for the three months ended March 31, 2024 and 2023, respectively.

Other assets were comprised of the following:

Amortization expense for patents and trademarks was $ 5 and $ 9 for the three and six months ended June 30, 2024, respectively, and $ 6 and $ 12 for the three and six months ended June 30, 2023, respectively.

Other assets consisted of the following:

Utility deposits

1 unchanged sentence

Accrued Liabilities

Accrued liabilities were comprised of the following:

Accrued liabilities consisted of the following:

Accrued payroll, vacation, and bonuses

Accrued audit fees

Other Long-Term Liabilities

Other long-term liabilities was $ 902 as of March 31, 2024 and December 31, 2023, and consisted of $ 859 of long-term, aged payables to vendors, individuals, and other third parties that have been outstanding for more than 5 years.

Also included in the balance is $ 43 in tenant deposits under the Facility Lease.

Other Current Liabilities

Other current liabilities consisted of the following:

Aged payables to vendors, individuals, and other third parties

Tenant deposits

Aged payables to vendors, individuals, and other third parties consisted of payables that have been outstanding for more than 5 years.

Stock Compensation Plans

4 unchanged sentences

On December 16, 2021, the Company granted option grants under the Company’s 2012 Equity Incentive Plan, as approved to by the Board, for employees up to 1,400,000 shares of the Company’s common stock in total.

Under this plan, the Company had outstanding grants of options to purchase 3,073,000 and 2,993,000 shares of the Company’s common stock as of March 31, 2024 and December 31, 2023, respectively.

Under this plan, the Company had outstanding grants of options to purchase 3,073,000 and 2,993,000 shares of the Company’s common stock as of June 30, 2024 and December 31, 2023, respectively.

On January 27, 2015, the Company adopted its 2015 Equity Incentive Plan ( “2015 Plan”), which provided for the grant of stock options to officers, employees, consultants and directors of the Company and its subsidiaries.

5 unchanged sentences

Under ASC 718, the Company is required to measure the cost of employee services received in exchange for stock options and similar awards based on the grant-date fair value of the award and recognize this cost in the income statement over the period during which an employee is required to provide service in exchange for the award.

Stock based compensation expense attributable to these plans was $ 25 and $ 34 for the three months ended March 31, 2024 and 2023, respectively.

Stock based compensation expense attributable to these plans was $ 38 and $ 63 for the three and six months ended June 30, 2024, respectively, and $ 38 and $ 72 for the three and six months ended June 30, 2023, respectively.

Expected volatilities are based on historical volatility expected over the expected life of the options.

9 unchanged sentences

The future minimum rents due to the Company under the Facility Lease are as follows:

2024 (remaining nine months)

2024 (remaining six months)

Loss Per Common Share

1 unchanged sentence

Diluted EPS reflects the potential dilution of securities that could share in the earnings.

Options to purchase 26,584,667 shares of common stock at prices ranging from $ 0.05 to $ 0.38 per share were outstanding at March 31, 2024, but were not included in the computation of diluted EPS for the same period as the inclusion would have been antidilutive, given the Company’s net loss.

Options to purchase 26,595,667 shares of common stock at prices ranging from $ 0.07 to $ 0.38 per share were outstanding as of March 31, 2023, but were not included in the computation of diluted EPS for the same period as the inclusion would have been antidilutive, given the Company’s net loss.

Warrants to purchase 10,066,809 shares of common stock, priced at $ 0.07 per share, outstanding at each of March 31, 2024 and March 31, 2023 were not included in the computation of diluted EPS for the same period as the inclusion would have been antidilutive, given the Company’s net loss.

Options to purchase 26,584,667 shares of common stock at prices ranging from $ 0.05 to $ 0.38 per share were outstanding at June 30, 2024, but were not included in the computation of diluted EPS for the same period as the inclusion would have been antidilutive, given the Company’s net loss.

Options to purchase 26,595,667 shares of common stock at prices ranging from $ 0.07 to $ 0.38 per share were outstanding as of June 30, 2023, but were not included in the computation of diluted EPS for the same period as the inclusion would have been antidilutive, given the Company’s net loss.

Warrants to purchase 10,066,809 shares of common stock, priced at $ 0.07 per share, outstanding at each of June 30, 2024 and June 30, 2023 were not included in the computation of diluted EPS for the same period as the inclusion would have been antidilutive, given the Company’s net loss.

Related Party Transactions

5 unchanged sentences

Yihao is currently the Company’s primary contract manufacturer.

As of March 31, 2024 and December 31, 2023, Professor Li is a greater-than 5 % beneficial owner of the Company and serves as the Company’s Chairman.

Equipment and services procured from Eontec, and their affiliates, were $ 115 and $ 301 during the three months ended March 31, 2024 and 2023, respectively.

As of March 31, 2024 and December 31, 2023, the Company has outstanding payables to Eontec, and their affiliates of $ 0 and $ 30 , respectively.

As of June 30, 2024 and December 31, 2023, Professor Li is a greater-than 5 % beneficial owner of the Company and serves as the Company’s Chairman.

Equipment and services procured from Eontec, and their affiliates, were $ 143 and $ 258 during the three and six months ended June 30, 2024, respectively, and $ 43 and $ 78 during the three and six months ended June 30, 2023, respectively.

As of June 30, 2024 and December 31, 2023, the Company has outstanding payables to Eontec, and their affiliates of $ 0 and $ 30 , respectively.

On May 10, 2022, Mr.

121 unchanged sentences

Results of Operations

Comparison of the three months ended March 31, 2024 and 2023

Three Months Ended March 31,

Comparison of the three months ended June 30, 2024 and 2023

Three Months Ended June 30,

Licensing and royalties

10 unchanged sentences

Net loss attributable to Liquidmetal Technologies shareholders

Revenue – Total revenue increased by $143 to $173 for the three months ended March 31, 2024 from $30 for the three months ended March 31, 2023.

Revenue – Total revenue increased to $242 for the three months ended June 30, 2024 from $67 for the three months ended June 30, 2023.

The increase was attributable to increase in product shipments primarily related to the launch of health monitoring rings utilizing our technology.

Cost of Sales – Cost of sales was $134, or 77.5% of total revenue, for the three months ended March 31, 2024, as compared to $23, or 76.7% of total revenue, for the three months ended March 31, 2023.

Cost of sales – Cost of sales was $187, or 77.3% of total revenue, for the three months ended June 30, 2024, as compared to $52, or 77.6% of total revenue, for the three months ended June 30, 2023.

The increase in our cost of sales was primarily driven by lower product revenues during Q2 2023 compared to Q2 2024.

Once we are able to sustain and increase shipments of routine, commercial products and parts through our contract manufacturers, we expect our cost of sales percentages to decrease, stabilize, and be more predictable.

Gross Profit – Our gross profit increased by $32 from $7 for the three months ended March 31, 2023 to $39 for the three months ended March 31, 2024.

Our gross margin percentage decreased slightly from Q1 2023 to Q1 2024.

Gross profit – Our gross profit increased by $40 from $15 for the three months ended June 30, 2023 to $55 for the three months ended June 30, 2024.

Our gross margin percentage increased slightly from Q2 2023 to Q2 2024.

Our gross profit percentages have fluctuated and may continue to fluctuate based on production volumes and quoted production prices per unit and may not be representative of our future business.

If we are able to sustain and increase shipments of routine, commercial products and parts through future orders to third party contract manufacturers, we expect our gross profit percentages to stabilize, increase, and be more predictable.

Selling, marketing, general, and administrative expenses – Selling, marketing, general, and administrative expenses decreased by $43 to $763, or 441.0% of revenue, for the three months ended March 31, 2024 from $806, or 2686.7% of revenue, for the three months ended March 31, 2023.

Selling, marketing, general and administrative – Selling, marketing, general, and administrative expenses decreased by $95 to $857, or 354.1% of revenue, for the three months ended June 30, 2024 from $952, or 1,420.9% of revenue, for the three months ended June 30, 2023.

The decrease in expenses was primarily attributable to decrease in trade show and investment relations expenses in Q2 2024 compared to Q2 2023.

Research and development expenses – Research and development expenses decreased by $2 to $4, or 2.3% of revenue, for the three months ended March 31, 2024, from $6, or 20.0% of revenue, for the three months ended March 31, 2023.

The decrease in expense was mainly due to reductions in employee compensation and associated development initiatives from headcount reductions.

Research and development – Research and development expenses stayed the same in Q2 2024 compared to Q2 2023.

Going forward, we will continue to perform research and development of new Liquidmetal alloys and related processing capabilities, albeit on a reduced basis.

2 unchanged sentences

Interest and Investment Income – Interest and investment income relates to interest earned from our cash deposits and investments in debt securities for the respective periods.

Interest and investment income was $243 and $100 for the three months ended March 31, 2024 and 2023, respectively.

Interest and investment income was $274 and $143 for the three months ended June 30, 2024 and 2023, respectively.

The increase was primarily due to higher overall yields on debt securities as a result of an increase in overall interest rate increases by the government in Q2 2024 compared to Q2 2023.

Lease income – Lease income relates to straight-line rental income received under the Facility Lease.

Such amounts were $171 and $118 for the three months ended March 31, 2024 and 2023, respectively.

Such amounts were $89 and $89 for the three months ended June 30, 2024 and 2023, respectively.

Other income – Other income relates to collections from previously written off accounts receivables that were deemed uncollectable and employee retention tax credits for the three months ended June 30, 2024.

We did not have any in the prior year in the same period.

Comparison of the six months ended June 30, 2024 and 2023

Six Months Ended June 30, 2024

Licensing and royalties

Total revenue

Cost of sales

Operating expenses:

Selling, marketing, general and administrative

Research and development

Operating loss

Other income (expense):

Interest and investment income

Loss from operations

Net loss attributable to non-controlling interest

Net loss attributable to Liquidmetal Technologies shareholders

Revenue – Total revenue increased to $415 for the six months ended June 30, 2024 from $97 for the six months ended June 30, 2023.

The increase was attributable to increase in product shipments primarily related to the launch of health monitoring rings utilizing our technology.

Cost of sales – Cost of sales was $321, or 77.3% of total revenue, for the six months ended June 30, 2024, as compared to $75, or 77.3% of total revenue, for the six months ended June 30, 2023.

The increase in our cost of sales was primarily driven by lower product revenues during six months ended June 30, 2023 compared to six months ended June 30, 2024.

Gross profit – Our gross profit increased by $72 from $22 for the six months ended June 30, 2023 to $94 for the six months ended June 30, 2024.

Our gross margin percentage had no change from six months ended June 30, 2023 to six months ended June 30, 2024.

Our gross profit percentages have fluctuated and may continue to fluctuate based on production volumes and quoted production prices per unit and may not be representative of our future business.

Selling, marketing, general and administrative – Selling, marketing, general, and administrative expenses decreased by $138 to $1,620, or 390.4% of revenue, for the six months ended June 30, 2024 from $1,758, or 1,812.4% of revenue, for the six months ended June 30, 2023.

The decrease in expenses was primarily attributable to decrease in trade show and investment relations expenses during the six months ended June 30, 2024 compared to the same comparative period in the prior year.

Research and development – Research and development expenses decreased to $9 for the six months ended June 30, 2024 from $11 for the six months ended June 30, 2023.

Going forward, we will continue to perform research and development of new Liquidmetal alloys and related processing capabilities, albeit on a reduced basis.

We continue to invest in our technology infrastructure to expedite the adoption of our technology, but we have experienced long sales lead times for customer adoption of our technology.

Until that time when we can either (i) increase our revenues with shipments of routine, commercial products and parts through third party contract manufacturers or (ii) obtain significant licensing revenues, we expect to continue to have operating losses for the foreseeable future.

Interest and Investment Income – Interest and investment income relates to interest earned from our cash deposits and investments in debt securities for the respective periods.

Interest and investment income was $517 and $243 for the six months ended June 30, 2024 and 2023, respectively.

The increase was primarily due to higher overall yields on debt securities as a result of an increase in overall interest rate increases by the government during the six months ended June 30, 2024 compared to same comparative period in the prior year.

Lease income – Lease income relates to straight-line rental income received under the Facility Lease.

Such amounts were $178 and $207 for the six months ended June 30, 2024 and 2023, respectively.

We did not have any in the prior year in the same period.

Liquidity and Capital Resources

Cash used in operating activities

Cash used in operating activities totaled $342 and $394 for the three months ended March 31, 2024 and 2023, respectively.

Cash used in operating activities totaled $143 and $734 for the six months ended June 30, 2024 and 2023, respectively.

The cash was primarily used to fund operating expenses related to our business and product development efforts.

Cash provided by (used in) investing activities

Cash provided by investing activities totaled $903 and $4,975 for the three months ended March 31, 2024 and 2023, respectively.

Cash provided by (used in) investing activities totaled ($1,327) and $8,414, for the six months ended June 30, 2024 and 2023, respectively.

Investing inflows primarily consist of proceeds from the sale of debt securities.

Investing outflows primarily consist of purchases of debt securities.

Cash provided by financing activities

The Company did not have any financing activities during the six months ended June 30, 2024 and 2023.

Financing arrangements and outlook

2 unchanged sentences

These factors have previously required that we engage in equity sales under various stock purchase agreements to support its operations and strategic initiatives.

However, as of March 31, 2024, we had $9,403 in cash and restricted cash, as well as $13,685 in investments in debt securities.

However, as of June 30, 2024, we had $7,372 in cash and restricted cash, as well as $15,793 in investments in debt securities.

We view this total of $23,165 as readily available sources of liquidity in the event needed to advance our existing strategy, and/or pursue an alternative strategy.

2 unchanged sentences

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.

What changed 10-Q

Item 1. Financial Statements