Liquidmetal Technologies Inc (OTCMKTS:LQMT) Is Moving Up
After a rather underwhelming string of sessions the stock of Liquidmetal Technologies Inc (OTCMKTS:LQMT) is once again climbing up the chart. On Friday the ticker closed with a gain of nearly 5% while yesterday it added another 4.3%, closing at $0.133 per share. During the trading day investors shifted 1.1 million of LQMT‘s shares, volume that nearly doubled the monthly average. Is there a reason for the sudden enthusiasm displayed towards the stock, though?
On May 10 LQMT submitted their financial report for the first quarter of 2016 but it failed to create any positive momentum and the stock continued to follow its previous course. Still, the numbers reported by the company showed signs of improvement, especially after the disappointing results for 2015. LQMT finished last year with $125 thousand in total revenues, down from $603 thousand in 2014, and gross loss of over $220 thousand. So, let’s see what did the company had at the end of March, this year:
• $10.3 million cash
• $11.77 million total current assets
• $7.7 million total current liabilities
• $168 thousand total revenue
• $9.17 million net loss
Compared to the same period in 2015 LQMT‘s revenues have increased by over 6 times. Thanks to the securities purchase agreement that was announced on March 10 the company also received a significant boost to its cash. Due to unfavorable changes in the fair value of warrants and options, however, the net loss for the quarter was quite a few times bigger than the $2.5 million in net loss reported at the end of March 2015.
The company is expecting that the current year will be far more successful. In 2015 LQMT received nine orders with two being in production while for 2016 they anticipate being able to secure 10 to 15 new customer orders.
However, you should still use caution when deciding whether to trade the stock or not. The aforementioned financing deal from March may bring a total of $63.4 million in funds but in order to get the money LQMT will have to issue a vast amount of shares. So far they have received $8.4 million after selling 105 million shares. According to the terms of the deal LQMT will sell another 300 million shares for a total of $55 million by August 17, 2016. Currently the authorized shares of the company cannot accommodate the issuance of all those shares and that is why LQMT will try to obtain the approval of the stockholders for an increase of the A/S from 700 million to 1.1 billion during the annual shareholder meeting taking place on May 19.
