What changed in this filing

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Item 1. Financial Statements

2025-11-13 compared with 2025-08-13 · 132 added, 98 removed, 503 unchanged (31% of the section changed)

4 unchanged sentences

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

September 30,

Current assets:

21 unchanged sentences

1,100,000,000 shares authorized;

917,285,149 and 917,285,149 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively

917,285,149 and 917,285,149 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively

18,179 18,179

10 unchanged sentences

$ 29,135 $ 30,400

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.

2 unchanged sentences

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

Three months ended June 30,

Six months ended June 30,

Three months ended September 30,

Nine months ended September 30,

Licensing and royalties

9 unchanged sentences

Loss from operations

Net loss attributable to non-controlling interest

Net income attributable to non-controlling interest

Net loss attributable to Liquidmetal Technologies shareholders

2 unchanged sentences

Number of weighted average shares - basic and diluted

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.

6 unchanged sentences

Stock-based compensation

Foreign currency translation adjustment

Other comprehensive gain

Balance - June 30, 2025

Balance - September 30, 2025 (unaudited)

Balance - December 31, 2023

1 unchanged sentence

Other comprehensive loss

Balance - June 30, 2024

Balance - March 31, 2025

Balance - September 30, 2024 (unaudited)

comprehensive

Paid-in Capital

Balance - June 30, 2025 (unaudited)

Stock-based compensation

Foreign currency translation adjustment

Other comprehensive gain

Balance - June 30, 2025

Balance - March 31, 2024

Balance - September 30, 2025 (unaudited)

Balance - June 30, 2024 (unaudited)

Stock-based compensation

Other comprehensive loss

Balance - June 30, 2024

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

Balance - September 30, 2024 (unaudited)

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

LIQUIDMETAL TECHNOLOGIES, INC.

2 unchanged sentences

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

Three months ended June 30,

Six months ended June 30,

Other comprehensive income (loss), net of tax

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

Other comprehensive income (loss), net of tax

Three months ended September 30,

Nine months ended September 30,

Other comprehensive income, net of tax

Net unrealized gains on available-for-sale securities

Gain on foreign currency translation

Other comprehensive income, net of tax

Comprehensive loss

Comprehensive loss attributable to noncontrolling interests

Comprehensive income attributable to noncontrolling interests

Comprehensive loss attributable to Liquidmetal Technologies shareholders

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.

2 unchanged sentences

($ in thousands, except per share data)

Six Months Ended June 30,

Nine Months Ended September 30,

Operating activities:

4 unchanged sentences

Stock-based compensation

Net income attributable to non-controlling interest

Changes in operating assets and liabilities:

8 unchanged sentences

Proceeds from sales of debt securities

Purchase of property and equipment

Net cash provided by (used in) investing activities

Net decrease in cash, cash equivalents, and restricted cash

Net increase (decrease) in cash, cash equivalents, and restricted cash

Cash, cash equivalents, and restricted cash at beginning of period

5 unchanged sentences

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

For the Six Months Ended June 30, 2025 and 2024

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

For the Nine Months Ended September 30, 2025 and 2024

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

16 unchanged sentences

BASIS OF PRESENTATION AND RECENT ACCOUNTING PRONOUNCEMENTS

The accompanying unaudited interim consolidated financial statements as of and for the six months ended June 30, 2025 and 2024 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 nine months ended September 30, 2025 and 2024 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 six months ended June, 2025 are not necessarily indicative of the results that may be expected for any future periods or the year ending December 31, 2025.

Operating results for the nine months ended September 30, 2025 are not necessarily indicative of the results that may be expected for any future periods or the year ending December 31, 2025.

The accompanying unaudited consolidated financial statements should be read in conjunction with the Company's 2024 Annual Report on Form 10 -K filed with the Securities and Exchange Commission (“SEC”) on March 13, 2025.

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 six months ended June 30, 2025 and 2024.

As a result of this assessment, the Company did not recognize any other-than-temporary impairment losses considered to be credit related for the nine months ended September 30, 2025 and 2024.

Investments in Debt Securities

4 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 six months ended June 30, 2025 and 2024.

As a result of this assessment, the Company did not recognize any other-than-temporary impairment losses considered to be credit related for the nine months ended September 30, 2025 and 2024.

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

3 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 six months ended June 30, 2025 and 2024.

As a result of this assessment, the Company did not recognize any other-than-temporary impairment losses considered to be credit related for the nine months ended September 30, 2025 and 2024.

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 June 30, 2025, 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 September 30, 2025, 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)

13 unchanged sentences

Amounts paid for broker commissions represent prepaid direct lease costs and will be amortized as an off-set to lease income over the lease term.

Foreign Currency Translation

The Company has operations in China.

Accounting records in foreign operations are maintained in local currencies and remeasured to the US dollars during the consolidation.

Nonmonetary assets and liabilities are translated at historical rates, and monetary assets and liabilities are translated at exchange rates in effect at the end of the year.

Income statement accounts are translated at average rates for the year.

Gains or losses from remeasurement of foreign currency financial statements into the US dollars are included in current results of comprehensive income.

Other Recent Pronouncements

1 unchanged sentence

SIGNIFICANT TRANSACTIONS

Hangzhou Feifeng Liquidmetal Co., Ltd.

Joint Venture

On July 4, 2025, Liquidmetal Asia Holdings Limited (“Liquidmetal Asia”), a Hong Kong based, wholly owned subsidiary of the Company, entered into a shareholders agreement with Mr.

Chong Liu, an individual investor to form a new joint venture company named Hangzhou Feifeng Liquidmetal Co.

Ltd., a limited liability company formed under the Peoples Republic of China (the “Joint Venture Company”).

The Joint Venture Company was formed for the principal purpose of developing a manufacturing facility in Hangzhou, China for the manufacture of amorphous metal products.

The Joint Venture Company will be owned 70 % by Liquidmetal Asia and 30 % by Mr.

Liu and will be capitalized with $ 6.0 million USD of initial capital, of which $ 4.2 million has been contributed by Liquidmetal Asia, and $ 1.8 million will be contributed by Mr.

Liu on or before May 25, 2028.

Yihao Manufacturing Agreement

17 unchanged sentences

The transaction occurred in multiple closings, with the Investor having purchased 105,000,000 shares at a purchase price of $ 8,400 (or $ 0.08 per share) at the initial closing on March 10, 2016 and the remaining 200,000,000 shares at $ 0.15 per share and 100,000,000 shares at $ 0.25 per share for an aggregate purchase price of $ 55,000 on October 26, 2016.

On October 10, 2024, the Investor sold 179,787,888 to various buyers leaving 225,212,112 shares of our common stock owned by the Investor as of December 31, 2024.

On October 10, 2024, the Investor sold 179,787,888 to various third party buyers leaving 225,212,112 shares of our common stock owned by the Investor as of December 31, 2024.

In addition to the shares issuable under the 2016 Purchase Agreement, the Company issued to the Investor a warrant to acquire 10,066,809 shares of common stock at an exercise price of $ 0.07 per share.

33 unchanged sentences

The following table sets forth amortized cost fair value, and unrealized gains (losses) of investments in debt securities (short-term and long-term):

Longest (Unaudited)

Amortized Cost

Maturity Date

Maturity September 30,

September 30,

government and agency securities

4 unchanged sentences

12,421 16,235 12,616 16,329

Income from these investments totaled $ 168 and $ 410 during the three and six months ended June 30, 2025, respectively, and $ 274 and $ 517 during three and six months ended June 30, 2024, respectively.

Income from these investments totaled $ 191 and $ 601 during the three and nine months ended September 30, 2025, respectively, and $ 259 and $ 775 during three and nine months ended September 30, 2024, 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 June 30, 2025, 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 September 30, 2025, 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 June 30, 2025, all investments are current on their scheduled interest and dividend payments.

As of September 30, 2025, 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 June 30, 2025.

As such, the Company does not consider these securities to be other-than-temporarily impaired as of September 30, 2025.

Investment in debt securities activities consisted of the following:

Three months ended June 30,

Six months ended June 30,

Three months ended September 30,

Nine months ended September 30,

Investment in debt securities – beginning balance

20 unchanged sentences

Trade accounts receivable were comprised of the following:

September 30,

Accounts receivables

1 unchanged sentence

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

September 30,

Prepaid service invoices

3 unchanged sentences

Inventories were comprised of the following:

September 30,

Work in progress

2 unchanged sentences

Property and equipment were comprised of the following:

September 30,

Land, building, and improvements

7 unchanged sentences

$ 7,127 $ 7,357

Depreciation expense were $ 77 and $ 155 for three and six months ended June 30, 2025 , respectively, and were $ 77 and $ 155 for three and six months ended June 30, 2024, respectively.

Depreciation expense were $ 78 and $ 233 for three and nine months ended September 30, 2025 , respectively, and were $ 78 and $ 233 for three and nine months ended September 30, 2024, respectively.

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

1 unchanged sentence

Patents and trademarks were comprised of the following:

September 30,

Purchased and licensed patent rights

8 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 $ 3 and $ 7 for the three and six months ended June 30, 2025, respectively, and $ 5 and $ 9 for the three and six months ended June 30, 2024, respectively.

Amortization expense for patents and trademarks was $ 4 and $ 11 for the three and nine months ended September 30, 2025, respectively, and $ 4 and $ 13 for the three and nine months ended September 30, 2024, respectively.

Other assets were comprised of the following:

September 30,

Utility deposits

1 unchanged sentence

Accrued liabilities were comprised of the following:

September 30,

Accrued payroll, vacation, and bonuses

1 unchanged sentence

OTHER CURRENT LIABILITIES

Other long-term liabilities was $ 902 as of June 30, 2025 and December 31, 2024, 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.

Other long-term liabilities was $ 902 as of September 30, 2025 and December 31, 2024, 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.

1 unchanged sentence

On June 28, 2012, the Company adopted the 2012 Equity Incentive Plan ( “2012 Plan”), with the approval of the shareholders, which provided for the grant of stock options to officers, employees, consultants and directors of the Company and its subsidiaries.

Under this plan, the Company had outstanding grants of options to purchase 2,432,500 and 3,073,000 shares of the Company’s common stock as of June 30, 2025 and December 31, 2024, respectively.

Under this plan, the Company had outstanding grants of options to purchase 2,432,500 and 3,073,000 shares of the Company’s common stock as of September 30, 2025 and December 31, 2024, respectively.

The 2012 Plan expired in June 2022.

2 unchanged sentences

All options granted under the 2015 Plan had exercise prices that were equal to the fair market value on the dates of grant.

Under this plan, the Company had outstanding grants of options to purchase 37,361,667 and 23,511,667 as of June 30, 2025 and December 31, 2024, respectively.

Under this plan, the Company had outstanding grants of options to purchase 37,361,667 and 23,511,667 as of September 30, 2025 and December 31, 2024, respectively.

The 2015 Plan expired in January 2025.

1 unchanged sentence

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 $ 33 and $ 87 for the three and six months ended June 30, 2025, respectively, and $ 38 and $ 63 for the three and six months ended June 30, 2024.

Stock based compensation expense attributable to these plans was $ 31 and $ 118 for the three and nine months ended September 30, 2025, respectively, and $ 42 and $ 105 for the three and nine months ended September 30, 2024.

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:

2025 (remaining six months)

2025 (remaining three 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 39,794,167 shares of common stock at prices ranging from $ 0.05 to $ 0.38 per share were outstanding at June 30, 2025, 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 26,584,667 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.

Warrants to purchase 10,066,809 shares of common stock, priced at $ 0.07 per share, outstanding at each of June 30, 2025 and June 30, 2024 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 39,794,167 shares of common stock at prices ranging from $ 0.05 to $ 0.38 per share were outstanding at September 30, 2025, 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 26,584,667 shares of common stock at prices ranging from $ 0.05 to $ 0.38 per share were outstanding at September 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.

Warrants to purchase 10,066,809 shares of common stock, priced at $ 0.07 per share, outstanding at each of September 30, 2025 and September 30, 2024 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

3 unchanged sentences

Eontec is an affiliate of Yihao which is currently the Company’s primary contract manufacturer.

As of June 30, 2025 and December 31, 2024, Professor Li is a greater-than 5 % beneficial owner of the Company and serves as the Company’s Chairman.

Equipment and services procured from Yihao were $ 121 and $ 238 for the three and six months ended June 30, 2025, respectively, and $ 143 and $ 258 during the three and six months ended June 30, 2024, respectively.

As of June 30, 2025 and December 31, 2024, the Company has outstanding payables to Yihao of $ 40 and $ 70 , respectively.

As of September 30, 2025 and December 31, 2024, Professor Li is a greater-than 5 % beneficial owner of the Company and serves as the Company’s Chairman.

Equipment and services procured from Yihao were $ 61 and $ 299 for the three and nine months ended September 30, 2025, respectively, and $ 221 and $ 479 during the three and nine months ended September 30, 2024, respectively.

As of September 30, 2025 and December 31, 2024, the Company has outstanding payables to Yihao of $ 14 and $ 70 , respectively.

On May 10, 2022, Mr.

9 unchanged sentences

ASC 855 sets forth (i) the period after the balance sheet date during which management of a reporting entity evaluates events or transactions that may occur for potential recognition or disclosure in the consolidated financial statements, (ii) the circumstances under which an entity should recognize events or transactions occurring after the balance sheet date in its consolidated financial statements, and (iii) the disclosures that an entity should make about events or transactions that occurred after the balance sheet date.

Accordingly, the Company did not have any subsequent events that require disclosure other than the following:

On July 4, 2025, Liquidmetal Asia Holdings Limited (“Liquidmetal Asia”), a Hong Kong based, wholly owned subsidiary of the Company, entered into a shareholders agreement with Mr.

Chong Liu, an individual investor to form a new joint venture company named Hangzhou Feifeng Liquidmetal Co.

Ltd., a limited liability company formed under the Peoples Republic of China (the “Joint Venture Company”).

The Joint Venture Company was formed for the principal purpose of developing a manufacturing facility in Hangzhou, China for the manufacture of amorphous metal products.

The Joint Venture Company will be owned 70 % by Liquidmetal Asia and 30 % by Mr.

Liu and will be capitalized with $ 6.0 million USD of initial capital, of which $ 4.2 million has been contributed by Liquidmetal Asia, and $ 1.8 million will be contributed by Mr.

Liu on or before May 25, 2028.

Accordingly, the Company did not have any subsequent events that require disclosure.

Item 2 – Management ’ s Discussion and Analysis of Financial Condition and Results of Operations

26 unchanged sentences

SIGNIFICANT TRANSACTIONS

Hangzhou Feifeng Liquidmetal Co., Ltd.

Joint Venture

On July 4, 2025, Liquidmetal Asia Holdings Limited (“Liquidmetal Asia”), a Hong Kong based, our wholly owned subsidiary, entered into a shareholders agreement with Mr.

Chong Liu, an individual investor to form a new joint venture company named Hangzhou Feifeng Liquidmetal Co.

Ltd., a limited liability company formed under the Peoples Republic of China (the “Joint Venture Company”).

The Joint Venture Company was formed for the principal purpose of developing a manufacturing facility in Hangzhou, China for the manufacture of amorphous metal products.

The Joint Venture Company will be owned 70% by Liquidmetal Asia and 30% by Mr.

Liu and will be capitalized with $6.0 million USD of initial capital, of which $4.2 million has been contributed by Liquidmetal Asia, and $1.8 million will be contributed by Mr.

Liu on or before May 25, 2028.

Yihao Manufacturing Agreement

On January 12, 2022, Liquidmetal Technologies entered into a manufacturing agreement (“Manufacturing Agreement”) with Dongguan Yihao Metal Materials Technology Co.

On January 12, 2022, we entered into a manufacturing agreement (“Manufacturing Agreement”) with Dongguan Yihao Metal Materials Technology Co.

(“Yihao”) to become the primary contract manufacturer of our products.

Under the Manufacturing Agreement, which has a term of five years, Yihao has agreed to serve as a non-exclusive contract manufacturer for amorphous alloy parts offered and sold by the us at prices determined on a “cost-plus” basis.

Under the Manufacturing Agreement, which has a term of five years, Yihao has agreed to serve as a non-exclusive contract manufacturer for amorphous alloy parts offered and sold by us at prices determined on a “cost-plus” basis.

Yihao is an affiliate of Dongguan Eontec Co.

52 unchanged sentences

RESULTS OF OPERATIONS

Comparison of the three months ended June 30, 2025 and 2024

Three months ended June 30,

Comparison of the three months ended September 30, 2025 and 2024

Three months ended September 30,

Licensing and royalties

12 unchanged sentences

Revenue and operating expenses

Total revenue increased by $47 to $289 for the three months ended June 30, 2025 from $242 for the three months ended June 30, 2024.

The increase was attributable to increase in product shipments primarily related to recurring customer orders and medical device orders.

Total revenue decreased by $279 to $37 for the three months ended September 30, 2025 from $316 for the three months ended September 30, 2024.

The decrease was attributable to decrease in product shipments primarily related to recurring customer orders and medical device orders.

Cost of Sales .

Cost of sales was $212, or 73.4% of total revenue, for the three months ended June 30, 2025, as compared to $187, or 77.3% of total revenue, for the three months ended June 30, 2024.

The increase in our cost of sales was primarily driven by lower product revenues during Q2 2024 compared to Q2 2025.

Cost of sales was $17, or 45.9% of total revenue, for the three months ended September 30, 2025, as compared to $239, or 75.6% of total revenue, for the three months ended September 30, 2024.

The increase in our cost of sales was primarily driven by lower general production revenues and higher mold tooling during Q3 2025 compared to Q3 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 $22 from $55 for the three months ended June 30, 2024 to $77 for the three months ended June 30, 2025.

Our gross margin percentage increased slightly from Q2 2024 to Q2 2025.

Our gross profit decreased by $57 from $77 for the three months ended September 30, 2024 to $20 for the three months ended September 30, 2025.

Our gross margin percentage increased from Q3 2024 to Q3 2025.

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.

1 unchanged sentence

Selling, marketing, general, and administrative expenses .

Selling, marketing, general, and administrative expenses increased by $70 to $927, or 320.8% of revenue, for the three months ended June 30, 2025 from $857, or 354.1% of revenue, for the three months ended June 30, 2024.

The increase in expenses was primarily attributable to increase in payroll expenses, a one-time severance payment to an administrative staff, and stock compensation in Q2 2025 compared to Q2 2024.

Selling, marketing, general, and administrative expenses increased by $57 to $961, or 2,597.3% of revenue, for the three months ended September 30, 2025 from $904, or 286.1% of revenue, for the three months ended September 30, 2024.

The increase in expenses was primarily attributable to increase in payroll expenses, legal fees, travel expenses, and stock compensation in Q3 2025 compared to Q3 2024.

Research and development expenses .

Research and development expenses remained unchanged at $3, or 1.0% of revenue, for the three months ended June 30, 2025, and $5, or 2.1% of revenue, for the three months ended June 30, 2024.

Research and development expenses remained unchanged at $4, or 10.8% of revenue, for the three months ended September 30, 2025, and $6, or 1.9% of revenue, for the three months ended September 30, 2024.

This was primarily due to continuing efforts to perform research and development on new Liquidmetal alloys and related processing capabilities, albeit on a reduced basis.

4 unchanged sentences

Investment income relates to realized gains earned from our investments in debt securities for the respective periods.

Investment income was $5 and $34 for the three months ended June 30, 2025 and 2024, respectively.

The decrease during the three months ended June 30, 2025 is primarily due to higher overall yields on debt securities as a result of an increase in overall interest rate increases by the government and holding onto debt securities until maturity.

Investment income was $25 and $53 for the three months ended September 30, 2025 and 2024, respectively.

The decrease during the three months ended September 30, 2025 is primarily due to withdrawals from debt securities.

Interest income .

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

Interest income was $160 and $89 for three months ended June 30, 2025 and 2024, respectively.

The decrease during the three months ended June 30, 2025 is primarily due to withdrawals from debt securities.

Interest income was $166 and $206 for three months ended September 30, 2025 and 2024, respectively.

The decrease during the three months ended September 30, 2025 is primarily due withdrawals from debt securities to fund our new joint venture.

Lease income .

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

Such amounts were $160 and $89 for the three months ended June 30, 2025 and 2024, the increase in lease income was due to our tenant signing a new lease agreement with higher base rents.

Our annual net losses of $525 for the three months ended June 30, 2025 and $260 for the three months ended June 30, 2024 are primarily reflective of operating expenses associated with our on-going business as well as non-operational income, discussed above.

Comparison of the six months ended June 30, 2025 and 2024

Six months ended June 30,

Such amounts were $196 and $88 for the three months ended September 30, 2025 and 2024, the increase in lease income was due to our tenant signing a new lease agreement with higher base rents.

Our annual net losses of $552 for the three months ended September 30, 2025 and $441 for the three months ended September 30, 2024 are primarily reflective of operating expenses associated with our on-going business as well as non-operational income, discussed above.

Comparison of the nine months ended September 30, 2025 and 2024

Nine months ended September 30,

Licensing and royalties

9 unchanged sentences

Loss from operations

Net loss attributable to non-controlling interest

Net income attributable to non-controlling interest

Net loss attributable to Liquidmetal Technologies shareholders

Revenue and operating expenses

Total revenue increased by $156 to $571 for the six months ended June 30, 2025 from $415 for the six months ended June 30, 2024.

The increase was attributable to increase in product shipments primarily related to recurring customer orders and medical device orders.

Total revenue decreased by $123 to $608 for the nine months ended September 30, 2025 from $731 for the nine months ended September 30, 2024.

The decrease was attributable to a decrease in product shipments primarily related to recurring customer orders and medical device orders.

Cost of Sales .

Cost of sales was $416, or 72.9% of total revenue, for the six months ended June 30, 2025, as compared to $321, or 77.3% of total revenue, for the six months ended June 30, 2024.

The increase in our cost of sales was primarily driven by lower product revenues during Q2 2024 compared to Q2 2025.

Cost of sales was $433, or 71.2% of total revenue, for the nine months ended September 30, 2025, as compared to $560, or 76.6% of total revenue, for the nine months ended September 30, 2024.

The decreease in our cost of sales was primarily driven by lower production part revenues during Q3 2025 compared to Q3 2024.

Gross Profit .

Our gross profit increased by $61 from $94 for the six months ended June 30, 2024 to $155 for the six months ended June 30, 2025.

Our gross profit increased by $4 from $171 for the nine months ended September 30, 2024 to $175 for the nine months ended September 30, 2025.

Our gross margin percentage increased slightly from Q3 2024 to Q3 2025.

2 unchanged sentences

Selling, marketing, general, and administrative expenses .

Selling, marketing, general, and administrative expenses increased by $282 to $1,902, or 333.1% of revenue, for the six months ended June 30, 2025 from $1,620, or 390.4% of revenue, for the six months ended June 30, 2024.

The increase in expenses was primarily attributable to increase in payroll expenses, a one-time severance payment to an administrative staff, and stock compensation in Q2 2025 compared to Q2 2024.

Selling, marketing, general, and administrative expenses increased by $339 to $2,863, or 470.9% of revenue, for the nine months ended September 30, 2025 from $2,524, or 345.3% of revenue, for the nine months ended September 30, 2024.

The increase in expenses was primarily attributable to increase in payroll expenses, travel expenses, legal fees, and stock compensation in Q3 2025 compared to Q3 2024.

Research and development expenses .

Research and development expenses remained unchanged at $7, or 1.2% of revenue, for the six months ended June 30, 2025, and $9, or 2.2% of revenue, for the six months ended June 30, 2024.

Research and development expenses remained unchanged at $11, or 1.8% of revenue, for the nine months ended September 30, 2025, and $15, or 2.1% of revenue, for the nine months ended September 30, 2024.

This was primarily due to continuing efforts to perform research and development on new Liquidmetal alloys and related processing capabilities, albeit on a reduced basis.

4 unchanged sentences

Investment income relates to realized gains earned from our investments in debt securities for the respective periods.

Investment income was $68 and $86 for the six months ended June 30, 2025 and 2024, respectively.

The decrease during the six months ended June 30, 2025 is primarily due to higher overall yields on debt securities as a result of an increase in overall interest rate increases by the government and holding onto debt securities until maturity.

Investment income was $93 and $139 for the nine months ended September 30, 2025 and 2024, respectively.

The decrease during the nine months ended September 30, 2025 is primarily due to withdrawals from debt securities.

Interest income .

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

Interest income was $342 and $430 for six months ended June 30, 2025 and 2024, respectively.

The decrease during the six months ended June 30, 2025 is primarily due to withdrawals from debt securities.

Interest income was $508 and $636 for nine months ended September 30, 2025 and 2024, respectively.

The decrease during the nine months ended September 30, 2025 is primarily due to withdrawals from debt securities to fund our new joint venture.

Lease income .

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

Such amounts were $249 and $179 for the six months ended June 30, 2025 and 2024, respectively.

Our annual net losses of $1,093 for the six months ended June 30, 2025 and $574 for the six months ended June 30, 2024 are primarily reflective of operating expenses associated with our on-going business as well as non-operational income, discussed above.

Such amounts were $445 and $267 for the nine months ended September 30, 2025 and 2024, respectively, the increase in lease income was due to our tenant signing a new lease agreement with higher base rents.

Our annual net losses of $1,645 for the nine months ended September 30, 2025 and $1,015 for the nine months ended September 30, 2024 are primarily reflective of operating expenses associated with our on-going business as well as non-operational income, discussed above.

LIQUIDITY AND CAPITAL RESOURCES

Cash used in operating activities

Cash used in operating activities totaled $579 and $143 for the six months ended June 30, 2025 and 2024, respectively.

Cash used in operating activities totaled $1,325 and $135 for the nine months ended September 30, 2025 and 2024, 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 $186 and cash used in investing activities totaled $1,327 for the six months ended June 30, 2025 and 2024, respectively.

Cash provided by investing activities totaled $3,804 and cash used in investing activities totaled $3,812 for the nine months ended September 30, 2025 and 2024, respectively.

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

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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 June 30, 2025, we had $5,618 in cash, as well as $16,212 in investments in debt securities.

However, as of September 30, 2025, we had $8,490 in cash, as well as $12,616 in investments in debt securities.

We view this total of $21,106 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