Liquidmetal Technologies, Inc. Approves Corporate Restructuring Plan
July 10, 2019 at 05:06 pm EDT
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The Liquidmetal Technologies, Inc.'s board of directors has approved a corporate restructuring plan proposed by management pursuant to which the Company intends to wind down its manufacturing operations at the Company's Lake Forest, CA facility and seek to outsource the manufacture of parts utilizing the Company's technology through its domestic and international manufacturing partners. The Company will seek to identify and develop additional strategic partners to engage in domestic manufacturing efforts. In addition, the Restructuring Plan includes reductions in operational costs and employee headcount, with the goal of preserving and maximizing the value of the Company's assets. Pursuant to the Restructuring Plan, the Company intends to dispose of equipment that is not expected to be utilized prospectively, lease the Company's operating facility to a commercial tenant, and identify additional opportunities in order to realize the full value of the Company's intellectual property. Total pre-tax charges associated with the Restructuring Plan are expected to be approximately $250,000. Most charges are expected to be incurred during the third quarter of 2019. The charges are expected to be related to employee severance, retention, early contract termination and other restructuring related costs. The Company expects to reduce headcount by approximately 15 employees as a result of these actions. As the Company completes these actions over the coming months, additional charges and headcount reductions could occur.
Liquidmetal Technologies, Inc. is a materials technology company that develops and commercializes products made from amorphous alloys. The Company's Liquidmetal family of alloys consists of a variety of bulk alloys and composites that utilize the advantages offered by amorphous alloy technology. The Company designs, develops, and sells custom products and parts from bulk amorphous alloys to customers in various industries. The Company also partners with third-party manufacturers and licensees to develop and commercialize Liquidmetal alloy products. The Company is engaged in product development efforts relating to various medical devices and automotive components that could be made from bulk Liquidmetal alloys. The Company work with partners to design, develop, and supply components for non-consumer electronic devices utilizing its bulk Liquidmetal alloys. The Company is developing a variety of applications for Liquidmetal alloys in the sporting goods and leisure products area.