Liquidmetal Technologies Inc: Form 10-Q for the period ended Jun 30, 2026
Filed with the SEC on Aug 6, 2026 and accepted by EDGAR at Aug 6, 2026, 16:08 ET.
Management's discussion and analysis
As filed, 29,146 characters, with its headings, lists and tables. Extracted from the main document; charts and exhibits are in the original on sec.gov.
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-Q. 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 in Part II herein, under the heading “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 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 and manufacturing company focused on the development and commercialization of products made from proprietary amorphous alloys and/or utilizing proprietary amorphous alloy manufacturing technologies. In addition to developing our own manufacturing facility through our subsidiary in China, we work with third-party manufacturing and commercial partners to develop and commercial products made from our proprietary amorphous alloys.
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, robotic components, 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.
SIGNIFICANT TRANSACTIONS
Hangzhou Feifeng Liquidmetal Co., Ltd. Joint Venture
On July 4, 2025, Liquidmetal Asia Holdings Limited (“Liquidmetal Asia”), a Hong Kong incorporated wholly owned subsidiary, entered into a shareholders agreement with Mr. Chong Liu, an individual investor to form a new joint venture company named Hangzhou Feifeng Liquidmetal Co. Ltd., a limited liability company formed under the Peoples Republic of China (the “Joint Venture Company”). The Joint Venture Company was formed for the principal purpose of developing a manufacturing facility in Hangzhou, China for the manufacture of amorphous metal products. The Joint Venture Company is owned 70% by Liquidmetal Asia and 30% by Mr. Liu and has been capitalized with $6.0 million USD of initial capital, of which $4.2 million has been contributed by Liquidmetal Asia, and $1.8 million will be contributed by Mr. Liu on or before May 25, 2028.
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 an 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 had an original term of three years and has been extended for an additional three year term that 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 for $7,818.
On January 23, 2020, 20321 Valencia, LLC, a Delaware limited liability company and our wholly owned subsidiary that owns the Facility entered into a lease agreement 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 was for 5 years and 2 months and expired on April 30, 2025. The base rent payable under the lease was $33 per month initially and was subject to periodic increases up to a maximum of approximately $54 per month. Tenant paid approximately 79% of common operating expenses.
On March 26, 2025, we entered into a new lease agreement (the “Facility Lease”) for a 5 year term commencing on May 1, 2025 and expanded the leased square footage to 40,090 square feet. The base rent payable under the Facility Lease is $52 per month initially and is subject to periodic increases up to a maximum of approximately $58 per month. Tenant will pay approximately 98% of building operating expenses. The Facility Lease grants us or Tenant the right to terminate the Facility Lease after two and a half years into the lease term and has other customary provisions, including provisions relating to default and usage restrictions.
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. On October 10, 2024, the Investor sold 179,787,888 to various buyers leaving 226,572,262 shares of our common stock owned by the Investor as of June 30, 2026.
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. The warrant expired on March 10, 2026.
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.
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-to-expire licensed patent.
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:
- Revenue recognition
- Impairment of long-lived assets and definite-lived intangibles
- Deferred tax assets
- Share based compensation
Our Annual Report on Form 10-K for the year ended December 31, 2025 (the “2025 Annual Report”) contains further discussions on our critical accounting policies and estimates.
RESULTS OF OPERATIONS
Comparison of the three months ended June 30, 2026 and 2025
| Revenue: | Three Months Ended June 30, 2026 Amount | % of Revenue | 2025 Amount | % of Revenue | Changes Amount | % of Change |
|---|---|---|---|---|---|---|
| Products | $193 | 98.5% | $289 | 100.0% | $(96) | -33.2% |
| Licensing and royalties | 3 | 1.5% | - | 0.0% | 3 | 0.0% |
| Total revenue | 196 | 100.0% | 289 | 100.0% | (93) | -32.2% |
| Cost of sales | 107 | 54.6% | 212 | 73.4% | (105) | -49.5% |
| Gross profit | 89 | 45.4% | 77 | 26.6% | 12 | 15.6% |
| Operating expenses: | ||||||
| Selling, marketing, general and administrative | 1,270 | 648.0% | 926 | 320.4% | 344 | 37.1% |
| Research and development | 4 | 2.0% | 3 | 1.0% | 1 | 33.3% |
| 1,274 | 650.0% | 929 | 321.5% | 345 | 37.1% | |
| Operating loss | (1,185) | -604.6% | (852) | -294.8% | (333) | 39.1% |
| Other income (expense): | ||||||
| Lease income | 196 | 100.0% | 160 | 55.4% | 36 | 22.5% |
| Other income | - | 0.0% | - | 0.0% | - | 0.0% |
| Investment income | 35 | 17.9% | 5 | 1.7% | 30 | 600.0% |
| Interest income | 114 | 58.2% | 163 | 56.4% | (49) | -30.1% |
| 345 | 176.0% | 328 | 113.5% | 17 | 5.2% | |
| Loss before income taxes | (840) | -428.6% | (524) | -181.3% | (316) | 60.3% |
| Income taxes | 1 | 0.5% | 1 | 0.3% | - | 0.0% |
| Net loss | (841) | -429.1% | (525) | -181.7% | (316) | 60.2% |
| Net loss attributable to non-controlling interest | 1 | 0.5% | 1 | 0.3% | - | 0.0% |
| Net loss attributable to Liquidmetal Technologies shareholders | $(840) | -428.6% | $(524) | -181.3% | $(316) | 60.3% |
Revenue and operating expenses
Revenue. Total revenue decreased by $93 to $196 for the three months ended June 30, 2026 from $289 for the three months ended June 30, 2025. The decrease was attributable to decrease in product shipments primarily related to recurring customer orders and medical device orders.
Cost of Sales. Cost of sales was $107, or 54.6% of total revenue, for the three months ended June 30, 2026, as compared to $212, or 73.4% of total revenue, for the three months ended June 30, 2025. The decrease in our cost of sales was primarily driven by lower costs of tariffs during Q2 2026 compared to Q2 2025. 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 increased by $12 from $77 for the three months ended June 30, 2025 to $89 for the three months ended June 30, 2026. Our gross margin percentage increased slightly from Q2 2025 to Q2 2026. 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 increased by $344 to $1,270, or 648.0% of revenue, for the three months ended June 30, 2026 from $926, or 320.4% of revenue, for the three months ended June 30, 2025. The increase in expenses was primarily attributable to increase in payroll expenses and expenses related to our factory build out in China in Q2 2026 compared to Q2 2025. Stock Based compensation was $33 for the three months ended June 30, 2026 and $33 for the three months ended June 30, 2025.
Research and development expenses. Research and development expenses increased to $4, or 2.0% of revenue, for the three months ended June 30, 2026, and $3, or 1.0% of revenue, for the three months ended June 30, 2025. This was primarily due to continuing efforts to perform research and development on new Liquidmetal alloys and related processing capabilities, albeit on a reduced basis.
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
Investment income. Investment income relates to realized gains earned from our investments in debt securities for the respective periods. Investment income was $35 and $5 for the three months ended June 30, 2026 and 2025, respectively. The increase during the three months ended June 30, 2026 is primarily due to increased income from investing activities.
Interest income. Interest income relates to interest earned from our cash deposits and investments in debt securities for the respective periods. Interest income was $114 and $163 for the three months ended June 30, 2026 and 2025, respectively. The decrease during the three months ended June 30, 2026 is primarily due to withdrawals from debt securities to fund our new joint venture and operations.
Lease income. Lease income relates to straight-line rental income received under the Facility Lease. Such amounts were $196 and $160 for the three months ended June 30, 2026 and 2025, respectively. The increase during the three months ended June 30, 2026 was primarily due to amendment of the Facility Lease on May 1, 2025 and the related increase in leased square footage.
Net loss. Our annual net losses of $841 for the three months ended June 30, 2026 and $525 for the three months ended June 30, 2025 are primarily reflective of operating expenses associated with our on-going business as well as non-operational income, discussed above.
Comparison of the six months ended June 30, 2026 and 2025
| Revenue: | Six Months Ended June 30, 2026 Amount | % of Revenue | 2025 Amount | % of Revenue | Changes Amount | % of Change |
|---|---|---|---|---|---|---|
| Products | $449 | 99.3% | $571 | 100.0% | $(122) | -21.4% |
| Licensing and royalties | 3 | 0.7% | - | 0.0% | 3 | 0.0% |
| Total revenue | 452 | 100.0% | 571 | 100.0% | (119) | -20.8% |
| Cost of sales | 286 | 63.3% | 416 | 72.9% | (130) | -31.3% |
| Gross profit | 166 | 36.7% | 155 | 27.1% | 11 | 7.1% |
| Operating expenses: | ||||||
| Selling, marketing, general and administrative | 2,482 | 549.1% | 1,901 | 332.9% | 581 | 30.6% |
| Research and development | 7 | 1.5% | 7 | 1.2% | - | 0.0% |
| 2,489 | 550.7% | 1,908 | 334.2% | 581 | 30.5% | |
| Operating loss | (2,323) | -513.9% | (1,753) | -307.0% | (570) | 32.5% |
| Other income (expense): | ||||||
| Lease income | 392 | 86.7% | 249 | 43.6% | 143 | 57.4% |
| Other income | 30 | 6.6% | 2 | 0.4% | 28 | 1400.0% |
| Investment income | 45 | 10.0% | 68 | 11.9% | (23) | -33.8% |
| Interest income | 251 | 55.5% | 342 | 59.9% | (91) | -26.6% |
| 718 | 158.8% | 661 | 115.8% | 57 | 8.6% | |
| Loss before income taxes | (1,605) | -355.1% | (1,092) | -191.2% | (513) | 47.0% |
| Income taxes | 1 | 0.2% | 1 | 0.2% | - | 0.0% |
| Net loss | (1,606) | -355.3% | (1,093) | -191.4% | (513) | 46.9% |
| Net loss attributable to non-controlling interest | 1 | 0.2% | 1 | 0.2% | - | 0.0% |
| Net loss attributable to Liquidmetal Technologies shareholders | $(1,605) | -355.1% | $(1,092) | -191.2% | $(513) | 47.0% |
Revenue and operating expenses
Revenue. Total revenue decreased by $119 to $452 for the six months ended June 30, 2026 from $571 for the six months ended June 30, 2025. The decrease was attributable to decrease in product shipments primarily related to recurring customer orders and medical device orders.
Cost of Sales. Cost of sales was $286, or 63.3% of total revenue, for the six months ended June 30, 2026, as compared to $416, or 72.9% of total revenue, for the six months ended June 30, 2025. The decrease in our cost of sales was primarily driven by lower tariffs for customer shipments in Q2 2026 compared to Q2 2025. 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 increase by $11 from $155 for the six months ended June 30, 2025 to $166 for the six months ended June 30, 2026. Our gross margin percentage increased slightly from Q2 2025 to Q2 2026. 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 increased by $581 to $2,482, or 549.1% of revenue, for the six months ended June 30, 2026 from $1,901, or 332.9% of revenue, for the six months ended June 30, 2025. The increase in expenses was primarily attributable to increase in payroll expenses and expenses related to our factory build out in China in Q2 2026 compared to Q2 2025. Stock Based compensation decreased by $16 to $71 for the six months ended June 30, 2026 from $87 for the six months ended June 30, 2025. The decrease was attributable to no new stock option issuances in the current period.
Research and development expenses. Research and development expenses was $7, or 1.5% of revenue, for the six months ended June 30, 2026, and $7, or 1.2% of revenue, for the six months ended June 30, 2025. This was primarily due to continuing efforts to perform research and development on new Liquidmetal alloys and related processing capabilities, albeit on a reduced basis.
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
Investment income. Investment income relates to realized gains earned from our investments in debt securities for the respective periods. Investment income was $45 and $68 for the six months ended June 30, 2026 and 2025, respectively. The decrease during the six months ended June 30, 2026 is primarily due to withdrawals from debt securities.
Interest income. Interest income relates to interest earned from our cash deposits and investments in debt securities for the respective periods. Interest income was $251 and $342 for the six months ended June 30, 2026 and 2025, respectively. The decrease during the six months ended June 30, 2026 is primarily due to withdrawals from debt securities to fund our new joint venture.
Lease income. Lease income relates to straight-line rental income received under the Facility Lease. Such amounts were $392 and $249 for the six months ended June 30, 2026 and 2025, respectively. The increase during the six months ended June 30, 2026 was primarily due to amendment of the Facility Lease on May 1, 2025 and the related increase in leased square footage.
Net loss. Our annual net losses of $1,606 for the six months ended June 30, 2026 and $1,093 for the six months ended June 30, 2025 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 $419 and $579 for the six months ended June 30, 2026 and 2025, respectively. The cash was primarily used to fund operating expenses related to our business and product development efforts.
Cash provided by investing activities
Cash provided by investing activities totaled $1,521 and $186 for the six months ended June 30, 2026 and 2025, respectively. Investing inflows primarily consist of proceeds from the sale of debt securities. Investing outflows primarily consist of purchases of debt securities and purchases of fixed assets for our factory in China
Financing arrangements and outlook
We have a relatively limited history of selling bulk amorphous alloy products and components on a mass-production scale. Furthermore, the ability of future contract manufacturers to produce our products in desired quantities and at commercially reasonable prices is uncertain and is dependent on a variety of factors that are outside of our control, including the nature and design of the component, the customer’s specifications, and required delivery timelines. These factors have previously required that we engage in equity sales under various stock purchase agreements to support its operations and strategic initiatives.
However, as of June 30, 2026, we had $8,266 in cash and restricted cash, as well as $10,581 in investments in debt securities. We view this total of $18,847 as readily available sources of liquidity in the event needed to advance our existing strategy, and/or pursue an alternative strategy. As such, we anticipate that our current capital resources, when considering expected losses from operations, will be sufficient to fund our operations for the foreseeable future. Accordingly, we have concluded that there is no substantial doubt about the Company’s ability to continue as a going concern.
Controls and procedures
As filed, 1,027 characters, with its headings, lists and tables. Extracted from the main document; charts and exhibits are in the original on sec.gov.
Evaluation of Disclosure Controls and Procedures.
Under the supervision and with the participation of our management, including our Chief Executive Officer (our Principal Executive Officer and Principal Financial Officer), we carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of June 30, 2026. Based on their evaluation, our Chief Executive Officer has concluded that our disclosure controls and procedures were effective as of June 30, 2026.
Changes in Internal Control over Financial Reporting.
There were no changes in our internal control over financial reporting (as that term is defined in Rules 13a-15(f) or 15d-15(f) under the Exchange Act) during the quarter ended June 30, 2026 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
PART II
OTHER INFORMATION
Risk factors
As filed, 343 characters, with its headings, lists and tables. Extracted from the main document; charts and exhibits are in the original on sec.gov.
For a detailed discussion of the risk factors that should be understood by any investor contemplating an investment in our stock, please refer to Part I, Item 1A “Risk Factors” in the 2025 Annual Report. There have been no material changes from the risk factors previously disclosed in Part I, Item 1A “Risk Factors” in the 2025 Annual Report.
Figures reported in this filing
Standardized line items from the XBRL in this filing, for the period ended 2026-06-30. Comparative periods it repeats are left out.
| Line item | Period | Value | XBRL concept |
|---|---|---|---|
| Revenue | 3 months2026-04-01 to 2026-06-30 | $196.0k | us-gaap:RevenueFromContractWithCustomerIncludingAssessedTax |
| Revenue | 6 months2026-01-01 to 2026-06-30 | $452.0k | us-gaap:RevenueFromContractWithCustomerIncludingAssessedTax |
| Cost of revenue | 3 months2026-04-01 to 2026-06-30 | $107.0k | us-gaap:CostOfGoodsAndServicesSold |
| Cost of revenue | 6 months2026-01-01 to 2026-06-30 | $286.0k | us-gaap:CostOfGoodsAndServicesSold |
| Gross profit | 3 months2026-04-01 to 2026-06-30 | $89.0k | us-gaap:GrossProfit |
| Gross profit | 6 months2026-01-01 to 2026-06-30 | $166.0k | us-gaap:GrossProfit |
| Research and development | 3 months2026-04-01 to 2026-06-30 | $4.0k | us-gaap:ResearchAndDevelopmentExpense |
| Research and development | 6 months2026-01-01 to 2026-06-30 | $7.0k | us-gaap:ResearchAndDevelopmentExpense |
| Selling, general and administrative | 3 months2026-04-01 to 2026-06-30 | $1.3m | us-gaap:SellingGeneralAndAdministrativeExpense |
| Selling, general and administrative | 6 months2026-01-01 to 2026-06-30 | $2.5m | us-gaap:SellingGeneralAndAdministrativeExpense |
| Operating income | 3 months2026-04-01 to 2026-06-30 | −$1.2m | us-gaap:OperatingIncomeLoss |
| Operating income | 6 months2026-01-01 to 2026-06-30 | −$2.3m | us-gaap:OperatingIncomeLoss |
| Income tax | 3 months2026-04-01 to 2026-06-30 | $1.0k | us-gaap:IncomeTaxExpenseBenefit |
| Income tax | 6 months2026-01-01 to 2026-06-30 | $1.0k | us-gaap:IncomeTaxExpenseBenefit |
| Net income | 3 months2026-04-01 to 2026-06-30 | −$840.0k | us-gaap:NetIncomeLoss |
| Net income | 6 months2026-01-01 to 2026-06-30 | −$1.6m | us-gaap:NetIncomeLoss |
| Basic EPS | 3 months2026-04-01 to 2026-06-30 | $0.00 | us-gaap:EarningsPerShareBasic |
| Basic EPS | 6 months2026-01-01 to 2026-06-30 | $0.00 | us-gaap:EarningsPerShareBasic |
| Operating cash flow | 6 months2026-01-01 to 2026-06-30 | −$419.0k | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Capital expenditure | 6 months2026-01-01 to 2026-06-30 | $471.0k | us-gaap:PaymentsToAcquirePropertyPlantAndEquipment |
| Cash and equivalents | At period end2026-06-30 | $8.3m | us-gaap:CashAndCashEquivalentsAtCarryingValue |
| Current assets | At period end2026-06-30 | $15.3m | us-gaap:AssetsCurrent |
| Total assets | At period end2026-06-30 | $27.4m | us-gaap:Assets |
| Current liabilities | At period end2026-06-30 | $1.7m | us-gaap:LiabilitiesCurrent |
| Total liabilities | At period end2026-06-30 | $2.0m | us-gaap:Liabilities |
| Shareholders' equity | At period end2026-06-30 | $25.4m | us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest |
Source: SEC EDGAR, the filing index for accession 0001437749-26-026257. Last ingested by Listed: Oct 24, 2026, 15:05 ET. Listed shows no prices and gives no investment advice.