Liquidmetal (LQMT) Should Be Going to Zero Anytime Now...
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Liquidmetal Technologies (OTCBB: LQMT) is on the move again Wednesday following a bearish outlook on SeekingAlpha.
Though many expect that Liquidmetal could benefit from another iPhone deal with Apple (Nasdaq: AAPL), which garnered it a kingly $20 million payment in 2010, one investor mulls whether or not shares will become insolvent before any further deals have been struck.
Looking at financials, Liquidmetal generated just $1 million in revenue last year, yet it has $7 million in operating expenses and 13 employees.
Recently, Liquidmetal has taken about $700,000 in loans via issuing promissory notes. Interest rates are at 8 percent, but rocket to 15 percent should a payment be missed.
With its latest 10-K, there is a section with a going concern that Liquidmetal might run out of money by April 30, 2012.
Overall, the most important thing investors need to think about right now is Apple. With it's 10-K filing, the following section should grab some attention: "On August 5, 2010, we entered into a license transaction with Apple Inc. (“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" [emphasis ours]. For what we understand about "fully-paid," there's no more licensing money coming in from Apple at any time. Liquidmetal even said it would not enter the consumer electronics industry because of this license.
So, whether Apple does or does not decide to use Liquidmetal technology in its next iPhone, it won't mater: the money is already spent. The only reason Liquidmetal will go up is based on speculation and manipulation.
Shares are fluctuating between 25 percent and 30 percent lower on the session.
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Though many expect that Liquidmetal could benefit from another iPhone deal with Apple (Nasdaq: AAPL), which garnered it a kingly $20 million payment in 2010, one investor mulls whether or not shares will become insolvent before any further deals have been struck.
Looking at financials, Liquidmetal generated just $1 million in revenue last year, yet it has $7 million in operating expenses and 13 employees.
Recently, Liquidmetal has taken about $700,000 in loans via issuing promissory notes. Interest rates are at 8 percent, but rocket to 15 percent should a payment be missed.
With its latest 10-K, there is a section with a going concern that Liquidmetal might run out of money by April 30, 2012.
Overall, the most important thing investors need to think about right now is Apple. With it's 10-K filing, the following section should grab some attention: "On August 5, 2010, we entered into a license transaction with Apple Inc. (“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" [emphasis ours]. For what we understand about "fully-paid," there's no more licensing money coming in from Apple at any time. Liquidmetal even said it would not enter the consumer electronics industry because of this license.
So, whether Apple does or does not decide to use Liquidmetal technology in its next iPhone, it won't mater: the money is already spent. The only reason Liquidmetal will go up is based on speculation and manipulation.
Shares are fluctuating between 25 percent and 30 percent lower on the session.
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Michael Mario Calaizzo on May 7, 2012 11:11 AMMark as Spam | Reply to this comment
They are going to tank.