Liquidmetal Technologies, Inc. (OTCBB:LQMT)’s Descent Accelerates
Liquidmetal Technologies, Inc. (OTCBB:LQMT) has been painting the charts red for some time now, and yesterday’s session was no different – it brought the ticker a 6.46% down on a dollar volume of nearly $400 thousand.
The last three months or after its December Plummet, the company has had very few green sessions. The last couple of times it managed to halt its descent were made possible by PR announcements, however that didn’t bring LQMT respite for long. As soon as the news grew cold, the ticker was headed down again.
A clue to why this is happening could probably be found in the company’s latest financial report:
- Cash – $11.9 million
- Total current assets – $12.3 million
- Total current liabilities – 1 million
- Quarterly revenue – $97 thousand
- Quarterly operating loss – $2.3 million
As can be seen, LQMT has a lot of cash on hand, but it is burning through it with alarming speed and is yet to produce revenues which could yield a profit.
To the company’s credit, it recently announced that it has “accepted our first order for a prototype to be completely produced in our own facility, representing significant progress in our transition to a fully functional manufacturing facility”. So there may be light at the end of that tunnel, but that doesn’t change the fact that currently LQMT appears idle.
And idleness is certainly not a quality that OTC Market investors appreciate in a company.
Another redeeming grace of LQMT is that its share structure looks sounder than most. It doesn’t appear to be drowning investors in dilution, so it has that going for it, which is good. Unfortunately, it is becoming more and more clear that the ticker can’t be held aloft by just that.
