Liquidmetal Techs Inc

Good afternoon. Welcome to the Liquid Metal Technologies fiscal year 2025 conference call. My name is Michelle and I will be your conference operator this afternoon. Joining us on today's call is Mr. Tony Chung, Liquid Metal's chief executive officer. Before we proceed, I would like to provide the company's safe harbor statement with important questions regarding forward-looking statements made during this call as follows. All statements made by management during this call that are not based on historical fact are forward-looking statements within the meaning of the Private Security Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933 as amended and Sections 21E of the Securities Exchange Act of 1934 as amended. Such forward-looking statements include but are not limited to those made by Mr. Chung regarding the company's cash, revenue outlook, and technology development. While management has based any forward-looking statement made during the call on its current expectation, the information on such expectations were based may change. These forward-looking statements rely on a number of assumptions concerning future events that are subject to a number of risks, uncertainties, and other factors, many of which are outside of the company's control that could cause actual results to materially differ from such statements. Such risks, uncertainties, and other factors included but are not necessarily limited to those set forth under the risk factors in the company's annual report on Form 10-K for the year ended December 31st, 2025. Accordingly, you should not place any reliance on forward-looking statements as a prediction of actual results. The company disclaims any intention and undertakes no obligation to update or revise any forward-looking statements. You are also urged to carefully review and consider the various disclosures of the company's annual report on Form 10-K for the year ended December 31, 2025, as well as other public filings with the SEC since such date. I would also like to remind everyone that this call will be available for replay starting later this evening via link available in the investor relations section of the company's website at www.liquidmetals.com. I would now like to turn the call over to the company's chief executive officer, Mr. Tony Chung. Sir, please go ahead.

Thank you, operator, and thank you to our investors for participating in today's call. As a reminder, please remember to supplement the information provided during today's call with the financial statements and disclosures in our 2025 10-K filed earlier today to get the latest full overview of our company operations. For today's call, I would like to provide more clarity on our company's pivotal events that occurred during 2025, especially as it relates to our Asia operations and how these events tie into the overall future and vision for the company. If you've kept up with our press releases and blogs during 2025, we announced that our chairman, Professor Lu Ji Li, was appointed as the head of our Asia operations and also announced our new manufacturing operations in Hangzhou, China. To illustrate the significance of these events, let me provide some historical perspective on our chairman and how his involvement in amorphous alloys brought the technology to where it is today. Professor Li is a Chinese-born businessman, material scientist, entrepreneur, and philanthropist, best known as the founder and former chairman of Dongguan EonTech in China. EonTech is a manufacturing powerhouse which specializes in manufacturing advanced light alloy materials including magnesium and aluminum for the automotive industry. With his technical and academic foundation in materials and industrial design, Professor Lee had been involved with research, industrialization of new materials, and precision manufacturing. He founded EonTech in 1993 and took the company public on the Shenzhen Exchange in 2012. Shortly thereafter, Professor Lee became very interested in a revolutionary new material, amorphous alloys, and devoted a part of Eontech operations for the development and production of this intriguing new material. And in 2014, he spun off a company from Eontech called Yi Hao Metal, who happens to be our current outsourced contract manufacturer, that was fully devoted to amorphous alloy manufacturing. While he was developing Yi Hao's manufacturing technology in China, Professor Li also set his sights on having a global presence for this new technology. So in 2016, he took another major step towards control by taking a significant stake in liquid metal technologies to become our chairman and to solidify his leadership in this industry. With his experience in advanced materials precision die casting, and industrial transformation, he devoted himself fully to the development of amorphous alloy technology by, one, focusing on manufacturing technologies at eHow, and, two, developing the worldwide amorphous alloy brand with liquid metal technologies to complete the ecosystem for taking amorphous alloy technology to the masses. Since Professor Lee's involvement with us, liquid metal's business model was to maintain our intellectual property focus on sales, and outsource all manufacturing to Yehow. This model has served us well as it allowed us to conserve cash while allowing the manufacturing technology for Murphos Alloy to mature and advance. And while its common knowledge to outsource manufacturing is an effective solution to allow expert manufacturers like Yehow to do what they do best, and for companies like Liquid Metal to focus on sales, The long-term drawback to this business model would be that new manufacturing advancements and know-how would be owned by the third-party manufacturer. You could say that we might face the same dilemma as America as a whole faces today, in that when we allow ourselves to utilize outsourced manufacturing overseas, we could end up losing our competitive edge. And with the new opportunities in consumer products and physical AI, aka humanoid robots, it would be an optimal time for liquid metal to itself advance amorphous alloy technology by venturing into our own manufacturing operations. As such, we are devoting our resources to creating new process know-how related to alloy, tooling design, injection molding conditions, post-processing steps, and other manufacturing processes for advancement. And in that regard, we have developed and built our newly designed machine called Liquid Morphium that utilizes advanced injection molding technology. This new machine incorporates years of machine technology experience where they focus on part quality and cost reduction and will be part of the lineup for our new Hangzhou manufacturing plant. As a natural output of our R&D efforts on our Liquid Morphium platform and other advancements in manufacturing, we will develop new intellectual property all our own, which is why we announced recently that we have established a new IP holding company called Liquid Morphium LLC, all in the name of increasing the value of our company. Another benefit to manufacturing in-house is that we will have better cost control to allow for higher gross margins when scale is reached. We will also have the ability to price strategically for high value applications. While capital expenditures will be higher up front, unit economics will improve at scale for the long term, increasing the value of the company as a whole. But one of the most vital aspects of making advancements in manufacturing is that our efforts will immediately attract established tier one manufacturing companies who would want to partner with or invest into liquid metal to further jointly develop amorphous alloy technology. As we devote more of our resources to R&D and technology advancement, liquid metal ultimately increases its value by making it an attractive target for collaboration. This is a very significant component of our future success in that access to global customers will be significantly accelerated through collaborations with these Tier 1 manufacturing companies. In essence, we view manufacturing as a critical step in increasing the value of the company and broadening our appeal with other established manufacturing companies to better position the company for success. Our renewed focus on manufacturing makes sense overall, but many have asked how our in-house manufacturing venture will affect the relationship we have with eHow Metal. In the short term, our relationship with eHow will not change in that they will continue to be our outsourced contract manufacturer. For the long term, however, we view eHow as a collaborator and an outsourcing partner. For amorphous alloy technology to be widely accepted as a viable solution for various applications, the market needs multiple sources of manufacturers to mitigate risks of relying on a single source. There are plenty of opportunities for both Liquid Metal, eHow, and perhaps even other manufacturing companies to succeed together, whereby customers can order parts directly from either Yihao or Liquid Metal. We also envision outsourcing orders to each other to manage volume production. We note that Yihao has already achieved Tier 1 vendor status for a global mobile device company as well as all the mobile device companies in China. And to our benefit, we are currently working together to build out the supply chain even further and look forward to collaborating and building the amorphous alloy manufacturing ecosystem together. In summary, I view our new venture into manufacturing as a natural progression of our journey to make amorphous alloy technology available to the masses. Our focus on advancing manufacturing technology for quality parts and cost reduction will allow us to increase the value of our company by one, developing an arsenal of new IP, reducing costs to attract well-established customers to adopt our technology, and three, fostering joint venture collaborations with tier one manufacturing vendors who already have ties with global customers. And of course, we have Professor Lee, who has divested his ownership and roles at EonTech anyhow, and is now free to fully devote himself to the success of liquid metal. He has a proven track record of building manufacturing operations from scratch and is proactively managing and operating our Hangzhou manufacturing plant through the mobilization of his network of collaborators who were carefully cultivated during his tenure at Eantech. So looking into our future sales opportunities, we believe that there is unlimited potential. We have completed prototypes for one of the top tier mobile device companies and are working towards designing production parts. We have made inroads into the medical device space with our current production orders. And as announced in our recently updated website, we have highlighted the opportunities with foldable phone hinges and physical AI. And our foray into manufacturing will allow us to take full advantage of these opportunities ahead. Let us now switch gears and quickly go over the financial results for 2025. We ended 2025 with revenues of about $800,000 and a net loss of $2.4 million with our EBITDA being about negative $1.8 million. We ended the year with about $20 million of readily available liquid cash and investments. Our corporate office building has a market value that is more than double the current book value of $7 million. which may also be accessible for future operating needs if necessary. We are well positioned to fund our growth for the foreseeable future and have no going concern issues. In closing, we are in the third month of 2026, and our Hangzhou manufacturing plant build-out is progressing smoothly, and we hope to be fully operational toward the second half of 2026. We are aggressively pursuing sales opportunities in consumer products, physical AI, and the medical industry and working closely with Tier 1 manufacturers to transition their current products to liquid metal applications. We will keep investors informed as these developments progress, and we look forward to announcing good news in the near future. Thank you for your time, and with a lunar new year upon us, I wish everyone good luck for 2026. I will now hand things over back to the operators.

Thank you, Mr. Chung. At this time, this concludes today's call. You may now disconnect. Everyone have a great day.