LQMT is a micro-cap amorphous alloy materials company with de minimis operating revenue ($256K in Q1 2026) and persistent operating losses ($1.1M operating loss, $765K net loss for the quarter). Under a liquidation lens, the recovery posture is modestly positive but materially below the going-concern book value of equity ($26.4M stated). The asset base is dominated by three items: cash and cash equivalents ($7.4M, 100% recoverable), available-for-sale debt securities ($11.8M fair value vs. $11.6M amortized cost, effectively 100% recoverable as marked-to-market), and net PP&E ($7.3M book, applying a 50-70% haircut yields $3.6-5.1M). Intangibles ($18K net book) are zeroed under liquidation. Total liquidation-basis asset recovery is approximately $19-20M against total liabilities of $2.2M at face, yielding positive equity recovery in the $17-18M range. This is consistent with MFFAIS CLV/LLV of ~$5.3-5.4M only if haircuts are applied more aggressively — the primary uncertainty is the realizable value of the PP&E (41,000 sq ft Lake Forest, CA facility carried at ~$9.9M gross for land/building/improvements with $4.2M accumulated depreciation) and the China joint venture investment. The China JV (Hangzhou Feifeng Liquidmetal, 70% owned, $4.2M contributed by LQMT) is not separately tagged in XBRL at the balance-sheet level as a distinct line item; it is embedded in PP&E additions ($315K capex in Q1 2026) and equipment deposits ($679K in other noncurrent assets, up from $27K at 12/31/25). This JV-related capital deployment is discussed in MD&A but the consolidated JV balance sheet position is not separately disclosed. The liability stack is lean: $410K AP, $217K accrued liabilities, $292K current operating lease (China facility, ASC 842), $390K long-term operating lease, and $902K other liabilities (of which $859K are long-aged vendor payables >5 years and $43K tenant deposit). No funded debt. The aged payables ($859K) would survive liquidation at face. Compared to the prior 10-K (12/31/25), the primary balance-sheet changes are: debt securities declined $766K (from $12.5M to $11.8M) due to net withdrawals funding JV and operations; PP&E increased $222K reflecting China factory buildout capex; operating lease liability declined $127K (from $809K to $682K) as lease term runs down; other noncurrent assets jumped $653K driven by equipment deposits for the China factory. The filing discusses the Hangzhou JV capital contributions and factory buildout in MD&A but does not separately tag JV carrying value or noncontrolling interest asset value in XBRL beyond the $-81K NCI balance. The $1.8M pending NCI contribution from Mr. Liu (due by May 2025, filing date) is not reflected as a receivable on the balance sheet — filing does not separately disclose whether this has been received.
▼ Community Notes