This management's discussion and analysis should be read in conjunction with the
consolidated financial statements and notes included elsewhere in this report on
Form 10-K. All amounts described in this section are in thousands, except
percentages, periods of time, and share and per share data.



This management's discussion and analysis, as well as other sections of this
report on Form 10-K, may contain "forward-looking statements" that involve risks
and uncertainties, including statements regarding our plans, future events,
objectives, expectations, estimates, forecasts, assumptions or projections. Any
statement that is not a statement of historical fact is a forward-looking
statement, and in some cases, words such as "believe," "estimate," "project,"
"expect," "intend," "may," "anticipate," "plan," "seek," and similar expressions
identify forward-looking statements. These statements involve risks and
uncertainties that could cause actual outcomes and results to differ materially
from the anticipated outcomes or results, and undue reliance should not be
placed on these statements. These risks and uncertainties include, but are not
limited to, the matters discussed under the caption "Risk Factors" in Item 1A of
this report and other risks and uncertainties discussed in filings made with the
Securities and Exchange Commission (including risks described in subsequent
reports on Form 10-Q, Form 10-K, Form 8-K, and other filings). Liquidmetal
Technologies, Inc. disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information, future
events, or otherwise.



OVERVIEW



We are a materials technology company that develops and commercializes products
made from amorphous alloys. Our Liquidmetal® family of alloys consists of a
variety of proprietary bulk alloys and composites that utilize the advantages
offered by amorphous alloy technology. We design, develop, and sell custom
products and parts from bulk amorphous alloys to customers in various
industries. We also partner with third-party manufacturers and licensees to
develop and commercialize Liquidmetal alloy products.



Amorphous alloys are, in general, unique materials that are distinguished by
their ability to retain a random atomic structure when they solidify, in
contrast to the crystalline atomic structure that forms in other metals and
alloys when they solidify. Liquidmetal alloys are proprietary amorphous alloys
that possess a combination of performance, processing, and potential cost
advantages that we believe will make them preferable to other materials in a
variety of applications. The amorphous atomic structure of bulk alloys enables
them to overcome certain performance limitations caused by inherent weaknesses
in crystalline atomic structures, thus facilitating performance and processing
characteristics superior in many ways to those of their crystalline
counterparts. We believe the alloys and the molding technologies we employ can
result in components for many applications that exhibit exceptional dimensional
control and repeatability that rivals precision machining, excellent corrosion
resistance, brilliant surface finish, high strength, high hardness, high elastic
limit, alloys that are non-magnetic, and the ability to form complex shapes
common to the injection molding of plastics. All of these characteristics are
achievable from the molding process, so design engineers often do not have to
select specific alloys to achieve one or more of the characteristics as is the
case with crystalline materials. We believe these advantages could result in
Liquidmetal alloys supplanting high-performance alloys, such as titanium and
stainless steel, and other incumbent materials in a wide variety of
applications. Moreover, we believe these advantages could enable the
introduction of entirely new products and applications that are not possible or
commercially viable with other materials.



Our revenues are derived from i) selling our bulk amorphous alloy custom
products and parts for applications which include, but are not limited to,
non-consumer electronic devices, medical products, automotive components, and
sports and leisure goods? ii) selling tooling and prototype parts such as
demonstration parts and test samples for customers with products in development?
and iii) product licensing and royalty revenue.



Our cost of sales consists primarily of the costs of manufacturing, which
include raw alloy and direct labor costs. Selling, general, and administrative
expenses currently consist primarily of salaries and related benefits, travel,
consulting and professional fees, depreciation and amortization, insurance,
office and administrative expenses, and other expenses related to our
operations.



Research and development expenses represent salaries, related benefits expenses,
consulting and contract services, expenses incurred for the design and testing
of new processing methods, expenses for the development of sample and prototype
products, and other expenses related to the research and development of
Liquidmetal bulk alloys. Costs associated with research and development
activities are expensed as incurred. We plan to enhance our competitive position
by improving our existing technologies and developing advances in amorphous
alloy technologies. We believe that our research and development efforts will
focus on the discovery of new alloy compositions, the development of improved
processing technology, and the identification of new applications for our
alloys.



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SIGNIFICANT TRANSACTIONS



Yihao Manufacturing Agreement



On January 12, 2022, Liquidmetal Technologies 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. 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 Company at prices determined
on a "cost-plus" basis. Yihao is an affiliate of Dongguan Eontec Co. Ltd. and
Professor Lugee Li, our Chairman and largest beneficial owner of the Company's
capital stock.



Liquidmetal Golf License



On January 13, 2022, our 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. The LMG Sublicense Agreement has a term of
three years and provides for the payment of a running royalty to LMG of 3% of
the net sales price of licensed products.

Corporate Facility Purchase and Lease

On February 16, 2017, we purchased a 41,000 square foot facility (the "Facility") located in Lake Forest, CA, where operations commenced during July 2017. The purchase price for the Facility was $7,818.





On January 23, 2020, 20321 Valencia, LLC, a Delaware limited liability company
and our wholly owned subsidiary, entered into a lease agreement (the "Facility
Lease") pursuant to which we leased to MatterHackers, Inc., a Delaware
corporation ("Tenant"), an approximately 32,534 square foot portion of the
Facility. The lease term is for 5 years and 2 months and is scheduled to expire
on April 30, 2025. The base rent payable under the Facility Lease is $32,534 per
month initially and is subject to periodic increases up to a maximum of
approximately $54,000 per month. Tenant will pay approximately 79% of common
operating expresses. The Facility Lease has other customary provisions,
including provisions relating to default and usage restrictions. The Facility
Lease grants to Tenant a right to extend the lease for one additional 60-month
period at market rental value.



2016 Purchase Agreement



On March 10, 2016, we entered into a Securities Purchase Agreement (the "2016
Purchase Agreement") with Liquidmetal Technology Limited, a Hong Kong company
(the "Investor"), which is controlled by our Chairman, Professor Lugee Li
("Professor Li"). The 2016 Purchase Agreement provided for the purchase by the
Investor of a total of 405,000,000 shares of our common stock for an aggregate
purchase price of $63,400. 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.



In addition to the shares issuable under the 2016 Purchase Agreement, we issued
to the Investor a warrant to acquire 10,066,809 shares of common stock (of which
the right to exercise 2,609,913 of the warrant shares vested on March 10, 2016
and the right to exercise the remaining 7,456,896 warrant shares vested on
October 26, 2016, all at an exercise price of $0.07 per share). The warrant will
expire on the tenth anniversary of its issuance date.



The 2016 Purchase Agreement also provided that, with certain limited exceptions,
if we issue any shares of common stock at any time through the fifth anniversary
of the 2016 Purchase Agreement, the Investor will have a preemptive right to
subscribe for and to purchase at the same price per share (or at market price,
in the case of issuance of shares pursuant to stock options) the number of
shares necessary to maintain its ownership percentage of our issued shares of
common stock.



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Eontec License Agreement



On March 10, 2016, in connection with the 2016 Purchase Agreement, we entered
into a Parallel License Agreement (the "License Agreement") with DongGuan Eontec
Co., Ltd., a Hong Kong corporation ("Eontec") pursuant to which we each entered
into a cross-license of our respective technologies. Our Chairman, Professor Li,
is also the Chairman of Eontec.



The License Agreement provides for the cross-license of certain patents,
technical information, and trademarks between us and Eontec. In particular, we
granted to Eontec a paid-up, royalty-free, perpetual license to our 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. In turn, Eontec granted to us 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
us to Eontec is exclusive (including to the exclusion of us) 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 us 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 the Company's proprietary amorphous metal
alloys. Under the Agreement, the Company has licensed to Eutectix specified
equipment owned by the Company, including two injection molding machines, two
diecasting machines, and other machines and equipment, all of which will be used
to make product for Company customers and Eutectix customers. The licensed
machines and equipment represent substantially all of the machinery and
equipment then held by the Company. The Company has also licensed to Eutectix
various patents and technical information related to the Company's proprietary
technology. Under the Agreement, Eutectix will pay the Company a royalty of six
percent (6%) of the net sales price of licensed products sold by Eutectix, and
Eutectix will also manufacture for the Company product ordered by the Company.
The Agreement has a term of five years, subject to renewal provisions and the
ability of either party to terminate earlier upon specified circumstances.



Apple License Transaction



On August 5, 2010, we entered into a license transaction with Apple pursuant to
which (i) we contributed substantially all of our intellectual property assets
to a newly organized special-purpose, wholly-owned subsidiary, Crucible
Intellectual Property, LLC ("CIP"), (ii) CIP granted to Apple a perpetual,
worldwide, fully-paid, exclusive license to commercialize such intellectual
property in the field of consumer electronic products, as defined in the license
agreement, in exchange for a license fee, and (iii) CIP granted back to us a
perpetual, worldwide, fully-paid, exclusive license to commercialize such
intellectual property in all other fields of use.



Under the agreements relating to the license transaction with Apple, we were
obligated to contribute to CIP all intellectual property that we developed
through February 2016. We are also obligated to maintain certain limited
liability company formalities with respect to CIP at all times after the closing
of the license transaction.



Swatch Group License



In March 2009, we entered into a license agreement with Swatch Group, Ltd.
("Swatch") under which Swatch was granted a non-exclusive license to our
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, but non-exclusive as to Apple. We 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.



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                             RESULTS OF OPERATIONS



                                             For the years ended December 31,
                                    2022                            2021
                                                     % of                          % of
                                  in 000's         Revenue        in 000's       Revenue


Revenue:
Products                         $      361                      $      790                    $    (429 )
Licensing and royalties                  22                              21                            1
Total revenue                           383                             811                         (428 )

Cost of sales                           316               83 %          628             77 %        (312 )
Gross profit                             67               17 %          183             23 %        (116 )

Selling, marketing, general
and administrative                    3,064              800 %        4,160            513 %      (1,096 )
Research and development                 55               14 %           84             10 %         (29 )
Gain on disposal of long-lived
assets                                    -                0 %            -              0 %           -
Total operating expense               3,119                           4,244                       (1,125 )

Operating loss                       (3,052 )                        (4,061 )                      1,009

Lease income                            530                             529                            1
Interest and investment income          128                             154                          (26 )

Net loss                         $   (2,394 )                    $   (3,378 )                  $     984

(a) Year Ended December 31, 2022 Compared to Year Ended December 31, 2021

Revenue and operating expenses

Revenue. Total revenue decreased by $428 to $383 for the year ended December 31, 2022 from $811 for the year ended December 31, 2021. The decrease was attributable to lower product sale volumes associated with the Company's continued transition from internal manufacturing to outsourced manufacturing.





Cost of sales. Cost of sales was $316, or 83% of total revenue, for the year
ended December 31, 2022, an increase from $628, or 77% of total revenue, for the
year ended December 31, 2021. The increase in our cost of sales was primarily
driven by lower product revenues with lower gross profit percentages. 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 decreased by $116 from $183 as of December 31,
2021 to $67 as of December 31, 2022. Our gross margin percentage decreased from
23% as of December 31, 2021 to 17% as of December 31, 2022. 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. If we are able to sustain and increase shipments of
routine, commercial products and parts through future orders to third party
contract manufacturers, we expect our gross profit percentages to stabilize,
increase, and be more predictable.



Selling, marketing, general, and administrative expenses. Selling, marketing,
general, and administrative expenses decreased by $1,096 to $3,064, or 800% of
revenue, for the year ended December 31, 2022 from $4,160, or 513% of revenue,
for the year ended December 31, 2021. The decrease in expenses was primarily
attributable to stock base compensation and severance expense in connection with
the separation agreements the Company entered into with our former COO and Vice
President of Finance, Dr. Bruce Bromage and Mr. Bryce Van, respectively in 2021.



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Research and development expenses. Research and development expenses decreased
by $29 to $55, or 14% of revenue, for the year ended December 31, 2022, from
$84, or 10% of revenue, for the year ended December 31, 2021. The decrease in
expense was mainly due to reductions in employee compensation, and associated
development initiatives from headcount reductions. Going forward, we will
continue to perform research and development of new Liquidmetal alloys and
related processing capabilities, albeit on a reduced basis.

Operating loss. Operating loss decreased by $1,009 from $4,061 for the year ended December 31, 2021 to $3,052 for the year ended December 31, 2022. Fluctuations in our operating loss are primarily attributable to variations in operating expenses, as discussed above.





We continue to invest in our technology infrastructure to expedite the adoption
of our technology, but we have experienced long sales lead times for customer
adoption of our technology. Until that time when we can either (i) increase our
revenues with shipments of routine, commercial products and parts through third
party contract manufacturers or (ii) obtain significant licensing revenues, we
expect to continue to have operating losses for the foreseeable future.

Non-operational income and expenses





Interest and investment income. Interest and investment income relates to
interest earned from our cash deposits and investments in debt securities for
the respective periods. Interest and investment income was $128 and $154 for the
years ended December 31, 2022 and 2021, respectively. The decrease during 2022
is due to lower overall yields on debt securities as a result of the global
economic recovery from the COVID-19 pandemic and global economic impact of
Russia-Ukraine war.



Lease income. Lease income relates to straight-line rental income received under
the Facility Lease. Such amounts were $530 and $529 for the years ended December
31, 2022 and 2021, respectively.



Net loss. Our annual net losses of $2,394 as of December 31, 2022 and $3,378 as
of December 31, 2021 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 $1,776 for the year ended December 31,
2022 and $2,730 for the year ended December 31, 2021. 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 used in investing activities totaled $258 for the year ended December 31,
2022 and cash provided by investing activities totaled $5,307 for the year ended
December 31, 2021. Cash used in investing activities primarily consist of
purchases of debt securities in line with our investment strategy.

Cash provided by financing activities

Cash provided by financing activities totaled $212 for the year ended December 31, 2022 and $0 for the year ended December 31, 2021.

Financing arrangements and outlook





The Company has a relatively limited history of selling bulk amorphous alloy
products and components on a mass-production scale. Furthermore, the ability of
contract manufacturers to produce the Company's products in desired quantities
and at commercially reasonable prices is uncertain and is dependent on a variety
of factors that are outside of the Company's control, including the nature and
design of the component, the customer's specifications, and required delivery
timelines. These factors have previously required that the Company engage in
equity sales under various stock purchase agreements to support its operations
and strategic initiatives.



However, as of December 31, 2022, the Company had $2,274 in cash and restricted
cash, as well as $22,081 in investments in debt securities. The Company views
this total of $24,355 as readily available sources of liquidity in the event
needed to advance the Company's existing strategy, and/or pursue an alternative
strategy. As such, the Company anticipates that its current capital resources,
when considering expected losses from operations, will be sufficient to fund the
Company's operations for the foreseeable future.



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OFF-BALANCE SHEET ARRANGEMENTS





An off-balance sheet arrangement is any transaction, agreement or other
contractual arrangement involving an unconsolidated entity under which a company
has (1) made guarantees, (2) a retained or a contingent interest in transferred
assets, (3) an obligation under derivative instruments classified as equity, or
(4) any obligation arising out of a material variable interest in an
unconsolidated entity that provides financing, liquidity, market risk or credit
risk support to our Company, or that engages in leasing, hedging, or research
and development arrangements with our Company. As of December 31, 2022, the
Company did not have any off-balance sheet arrangements.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES





The preparation of consolidated financial statements in conformity with
accounting principles generally accepted in the United States requires us to
make estimates and assumptions that affect reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses
during the reporting period. These estimates and assumptions are based on
historical experience and various other factors that are believed to be
reasonable under the circumstances. Actual results could differ materially from
these estimates under different assumptions or conditions.



We believe that the following accounting policies are the most critical to our
consolidated financial statements since these policies require significant
judgment or involve complex estimates that are important to the portrayal of our
financial condition and operating results:

• We recognize revenue pursuant to applicable accounting standards including

FASB ASC Topic 606 ("ASC 606"), Revenue from Contracts with Customers. ASC 606

summarizes certain points in applying generally accepted accounting principles


    to revenue recognition in financial statements and provides guidance on
    revenue recognition issues in the absence of authoritative literature
    addressing a specific arrangement or a specific industry.

Our revenue recognition policy complies with the requirements of ASC 606. As a

majority of our sales revenue continues to be recognized when products are

shipped, and there was no change in the recognition model historically applied

to active license and royalty contracts under the new revenue standard, there

was no adjustment to the opening balance of retained earnings. The impact to

our results of operations is not material, on an on-going basis, because the

analysis of our contracts under the new revenue standard supports a

recognition model consistent with our previous revenue recognition model.

Revenue on the majority of our contracts will continue to be recognized over

time because of the continuous transfer of control to the customer.

Products: Product revenues are primarily generated from the sale and

prototyping of molds and bulk alloy products. Revenue is recognized when i)

persuasive evidence of an arrangement exists, ii) delivery has occurred, iii)

the sales price is fixed or determinable, iv) collection is probable and v)

all obligations have been substantially performed pursuant to the terms of the

arrangement. When we receive consideration, or such consideration is

unconditionally due, from a customer prior to transferring goods or services

to the customer under the terms of a sales contract, we record deferred

revenue, which represents a contract liability. We will recognize deferred

revenue as products revenue after it has transferred control of the goods or

services to the customer and all revenue recognition criteria are met. Such

amounts are not expected to be material on an ongoing basis.

Licensing and royalties: License revenue arrangements in general provide for

the grant of an exclusive or non-exclusive right to manufacture and/or sell

products covered by patented technologies owned or controlled by us. The

intellectual property rights granted may be perpetual in nature, extending

until the expiration of the related patents, or can be granted for a defined

period of time. Licensing revenues that are one-time fees upon the granting of

the license are recognized when i) the license term begins in a manner

consistent with the nature of the transaction and the earnings process is

complete, ii) when collectability is reasonably assured or upon receipt of an

upfront fee, and iii) when all other revenue recognition criteria have been

met. Pursuant to the terms of these agreements, we have no further obligation

with respect to the grant of the license. Licensing revenues that are related

to royalties are recognized as the royalties are earned over the related

period.

Practical Expedients and Exemptions: We generally expense sales commissions


    when incurred because the amortization period would have been one year or
    less. These costs are recorded within selling, marketing, general and
    administrative expenses. We do not disclose the value of unsatisfied

performance obligations for (i) contracts with an original expected length of

one year or less and (ii) contracts for which we recognize revenue at the


    amount for which it has the right to invoice for services performed.




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• We value our long-lived assets at the lower of cost or fair market value. We

review long-lived assets to be held and used in operations for impairment

whenever events or changes in circumstances indicate that the carrying value

of an asset may be impaired. These evaluations may result from significant

decreases in the overall market outlook for our technology or the market price

of an asset, a significant adverse change in the extent or manner in which an

asset is being used in its physical condition, a significant adverse change in

legal factors or in the business climate that could affect the value of an

asset, as well as economic or operational analyses. If we concludes that the

carrying value of certain assets will not be recovered based on expected

undiscounted future cash flows, an impairment write-down is recorded to reduce

the assets to their estimated fair value. Fair value is determined via market,

cost and income based valuation techniques, as appropriate. The fair value is

measured on a nonrecurring basis using a combination of quoted prices for

similar assets in active markets and other unobservable adjustments to

historical cost (Level 3) inputs. No cash impairment charges were recorded for

the years ended December 31, 2022 and December 31, 2021.

• We record valuation allowances to reduce our deferred tax assets to the

amounts deemed more likely than not of being realized. While we consider

taxable income in assessing the need for a valuation allowance, in the event

we determine we would be able to realize our deferred tax assets in the future

in excess of the net recorded amount, an adjustment would be made and income

increased in the period of such determination. Likewise, in the event we

determine we would not be able to realize all or part of our deferred tax

assets in the future, an adjustment would be made and charged to income in the

period of such determination.

• We account for share-based compensation in accordance with the fair value

recognition provisions of FASB ASC Topic 718, Share-based Payment, which

requires all share-based payments to employees, including grants of employee

stock options, to be recognized in the consolidated financial statements based

on their fair values. The fair value of stock options is calculated by using

the Black-Scholes option pricing formula that requires estimates for expected

volatility, expected dividends, the risk-free interest rate and the term of

the option. If any of the assumptions used in the Black-Scholes model change

significantly, share-based compensation expense may differ materially in the

future from that recorded in the current period.

• Our inventory is stated at the lower of cost or estimated net realizable

value. The cost of inventories is determined on the basis of weighted-average

cost. We perform an analysis of our inventory balances at least quarterly to

determine if the carrying amount of inventories exceeds their net realizable

value. The analysis of estimated net realizable value is based on customer

orders, market trends and historical pricing. If the carrying amount exceeds

the estimated net realizable value, the carrying amount is reduced to the

estimated net realizable value.

• We invest excess funds in debt securities to maximize investment yield, while

maintaining liquidity and minimizing credit risk. Debt securities are carried

at fair value and consist primarily of investments in obligations of the

United States Treasury, various U.S. and foreign corporations, and

certificates of deposits. We classify our investments in debt securities as

available-for-sale with all unrealized gains or losses included as part of

other comprehensive income. We evaluate our debt securities with unrealized

losses on a quarterly basis for potential other-than-temporary impairments in

value. As a result of these assessments, we did not recognize any

other-than-temporary impairment losses considered to be credit related for the


    years ended December 31, 2022 and 2021.

RECENT ACCOUNTING PRONOUNCEMENTS

Financial Instruments- Credit Losses





In June 2016, the FASB issued an accounting standards update which changes the
methodology for measuring credit losses on financial instruments and the timing
of when such losses are recorded. This update replaces the existing incurred
loss impairment model with an expected loss model (referred to as the Current
Expected Credit Loss model, or "CECL"). The standard update, and its related
amendments, will become effective for the fiscal year beginning on January 1,
2023. The Company is in the process of assessing the impact of this standard
update, and its related amendments, on its consolidated financial statements,
but is not expecting it will have a material impact on the Company's
consolidated financial statements.

Other recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the AICPA and the SEC did not or are not believed by management to have a material impact on the Company's present or future consolidated financial statements.

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