Liquidmetal Technologies, Inc. operates as a materials technology company that works with manufacturing and commercial partners to develop and commercialize products made from its proprietary amorphous alloys.
The company’s Liquidmetal family of alloys consists of a variety of proprietary bulk alloys and composites that utilize the advantages offered by amorphous alloy technology. The company works with partners to design, develop, and sell custom products and parts from bulk amorphous alloys...
Liquidmetal Technologies, Inc. operates as a materials technology company that works with manufacturing and commercial partners to develop and commercialize products made from its proprietary amorphous alloys.
The company’s Liquidmetal family of alloys consists of a variety of proprietary bulk alloys and composites that utilize the advantages offered by amorphous alloy technology. The company works with partners to design, develop, and sell custom products and parts from bulk amorphous alloys for sale in various industries. The company also partners with third-party manufacturers and licensees to develop and commercialize Liquidmetal alloy products.
The company’s bulk amorphous alloy technology is a relatively new technology as compared to many other material technologies, such as plastics and widely-used high-performance crystalline alloys. Historically, the successful commercialization of a new material technology has required the persistent improvement and refining of the technology over a sometimes lengthy period of time.
Strategy
The key elements of the company’s strategy include focusing its marketing activities on select products; pursuing strategic partnerships in order to more rapidly develop and commercialize products; and advancing the Liquidmetal brand.
Medical Devices
The company engages in product development efforts relating to various medical devices that could be made from bulk Liquidmetal alloys. The company’s ongoing emphasis has been on minimally invasive surgical instrument applications for Liquidmetal alloys. These include, but are not limited to, specialized blades, clamps, tissue suturing components, tissue manipulation devices and orthopedic instruments utilized for implant surgery procedures, dental devices, and general surgery devices. The status of most components in the prototyping phase is subject to non-disclosure agreements with the company’s customers.
Automotive Components
The company engages in product development efforts relating to various automotive components that could be made from bulk Liquidmetal alloys. The unique properties of bulk Liquidmetal alloys provide the combination of long-lasting surface finish, corrosion resistance, strength, and precision required by most automotive applications, especially for the EV space. The potential value offered by the company’s alloys is higher performance in some cases, the latter stemming from the ability of Liquidmetal alloys to be net shape molded into components, thus reducing costs of secondary processing common with existing processes.
Components for Non-Consumer Electronic Products
The company works with partners to design, develop and supply components for non-consumer electronic devices utilizing its bulk Liquidmetal alloys. The company’s product categories in the non-consumer electronics field include but are not limited to, aerospace components, leisure products, and industrial machines.
On August 5, 2010, the company entered into a license transaction with Apple Inc. (Apple) pursuant to which, for a one-time, upfront license fee, it granted to Apple a perpetual, worldwide, fully-paid, exclusive license to commercialize its intellectual property in the field of consumer electronic products, as defined in the license agreement. The company continues to work with Apple to develop and advance research and development in the amorphous alloy space to benefit both consumer and non-consumer electronics fields.
Sporting Goods and Leisure Products
The company is developing a variety of applications for Liquidmetal alloys in the sporting goods and leisure products area.
Licensing Transactions
Eontec License Agreement
On March 10, 2016, in connection with the 2016 Purchase Agreement, the company entered into a Parallel License Agreement (the License Agreement) with DongGuan Eontec Co., Ltd., a Hong Kong corporation (Eontec) pursuant to which it each entered into a cross-license of its respective technologies.
The License Agreement provides for the cross-license of certain patents, technical information, and trademarks between the company and Eontec. In particular, the company granted to Eontec a paid-up, royalty-free, perpetual license to its patents and related technical information to make, have made, use, offer to sell, sell, export, and import products in certain geographic areas outside of North America and Europe, and Eontec granted to the company a paid-up, royalty-free, perpetual license to Eontec’s patents and related technical information to make, have made, use, offer to sell, sell, export, and import products in certain geographic areas outside of specified countries in Asia. The license granted by the company to Eontec is exclusive (including to the exclusion of it) in the countries of Brunei, Cambodia, China (P.R.C and R.O.C.), East Timor, Indonesia, Japan, Laos, Malaysia, Myanmar, Philippines, Singapore, South Korea, Thailand, and Vietnam. The license granted by Eontec to it is exclusive (including to the exclusion of Eontec) in North America and Europe. The cross-licenses are non-exclusive in geographic areas outside of the foregoing exclusive territories.
Eutectix Business Development Agreement
On January 31, 2020, the company entered into a Business Development Agreement (the Agreement) with Eutectix, LLC, a Delaware limited liability company (Eutectix), which provides for collaboration, joint development efforts, and the manufacturing of products based on its proprietary amorphous metal alloys. Under the Agreement, the company has agreed to license to Eutectix specified equipment owned by it, including two injection molding machines, the Machines, and other machines and equipment, all of which will be used to make products for its customers and Eutectix customers. The company has also licensed to Eutectix various patents and technical information related to its proprietary technology.
Apple License Transaction
On August 5, 2010, the company entered into a license transaction with Apple pursuant to which it contributed substantially all of its intellectual property assets to a newly organized special-purpose, wholly-owned subsidiary, Crucible Intellectual Property, LLC (CIP), CIP granted to Apple a perpetual, worldwide, exclusive license to commercialize such intellectual property in the field of consumer electronic products, as defined in the license agreement, in exchange for a one-time, upfront license fee, and CIP granted back to it a perpetual, worldwide, fully-paid, exclusive license to commercialize such intellectual property in all other fields of use.
Swatch Group License
In March 2009, the company entered into a license agreement with Swatch Group, Ltd. (Swatch) under which Swatch was granted a non-exclusive license to its technology to produce and market watches and certain other luxury products. In March 2011, this license agreement was amended to grant Swatch exclusive rights as to watches as against all third parties (including it), but non-exclusive as to Apple. The company will receive royalty payments over the life of the contract on all Liquidmetal products produced and sold by Swatch. The license agreement with Swatch will expire on the expiration date of the last licensed patent.
Liquidmetal Golf License
On January 13, 2022, the company’s Liquidmetal Golf subsidiary entered into a sublicense agreement (LMG Sublicense Agreement) with Amorphous Technologies Japan, Inc. (ATJ), a newly formed Japanese entity that was established by Twins Corporation, a sporting goods company operating in Japan. Under the agreement, LMG granted to ATJ a nonexclusive worldwide sublicense to the company’s amorphous alloy technology and related trademarks to manufacture and sell golf clubs and golf related products.
Intellectual Property
The company’s intellectual property portfolio includes more than 34 owned or licensed U.S. patents relating to the composition, processing, and application of its alloys, as well as more than 39 foreign counterpart patents and patent applications.
The company’s initial bulk amorphous alloy technology was developed by researchers at Caltech. The company has acquired patent rights that provide it with the exclusive right to commercialize amorphous alloys and other amorphous alloy technology developed at Caltech through a license agreement (Caltech License Agreement) with Caltech. In addition to the patents and patent applications that it licenses from Caltech, it is building a portfolio of its own patents to expand and enhance its technology position. These patents and patent applications primarily relate to various applications of the company’s bulk amorphous alloys and the processing of its alloys. The patents expire on various dates between 2024 and 2039.
Research and Development
The company’s research and development expenses for the year ended December 31, 2023, included $20.
Manufacturing
On January 12, 2022, the company entered into a manufacturing agreement (Manufacturing Agreement) with Dongguan Yihao Metal Materials Technology Co. Ltd. (Yihao) to become the primary outsourced manufacturer of the company’s products.
Customers
During 2023, there were three major customers, who together accounted for 86% of the company’s revenue. As of December 31, 2023, two customers represented 96%, or $178, of the total outstanding trade accounts receivable.
Sales and Marketing
The company directs its marketing efforts towards customers that will incorporate its components and products into their finished goods. The company has full-time individuals engaged in its internal sales, business development and marketing activities. The company works closely with a team of more than external sales representatives covering the territories of North America and Europe.
History
Liquidmetal Technologies, Inc. was founded in 1987. The company was incorporated in 1987.
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