<SEC-DOCUMENT>0001235468-20-000034.txt : 20200203
<SEC-HEADER>0001235468-20-000034.hdr.sgml : 20200203
<ACCEPTANCE-DATETIME>20200203071411
ACCESSION NUMBER:		0001235468-20-000034
CONFORMED SUBMISSION TYPE:	DEFA14A
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20200203
DATE AS OF CHANGE:		20200203
EFFECTIVENESS DATE:		20200203

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			LIQUIDITY SERVICES INC
		CENTRAL INDEX KEY:			0001235468
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-BUSINESS SERVICES, NEC [7389]
		IRS NUMBER:				522209244
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0930

	FILING VALUES:
		FORM TYPE:		DEFA14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-51813
		FILM NUMBER:		20566950

	BUSINESS ADDRESS:	
		STREET 1:		6931 ARLINGTON ROAD
		STREET 2:		SUITE 200
		CITY:			BETHESDA
		STATE:			MD
		ZIP:			20814
		BUSINESS PHONE:		2024676868

	MAIL ADDRESS:	
		STREET 1:		6931 ARLINGTON ROAD
		STREET 2:		SUITE 200
		CITY:			BETHESDA
		STATE:			MD
		ZIP:			20814
</SEC-HEADER>
<DOCUMENT>
<TYPE>DEFA14A
<SEQUENCE>1
<FILENAME>lqdtproxysupplement232020.htm
<DESCRIPTION>DEFA14A PROXY SUPPLEMENT
<TEXT>
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<div><a name="sE0F1DCA53B2C2C7028C60391BE202576"></a></div><div><div style="line-height:120%;text-align:justify;padding-left:1px;text-indent:-2px;font-size:8.5pt;"><font style="font-family:inherit;font-size:8.5pt;"><br></font></div></div><div><br></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">UNITED STATES</font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">SECURITIES AND EXCHANGE COMMISSION</font></div><div style="line-height:120%;padding-bottom:16px;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Washington, D.C. 20549</font></div><div style="line-height:120%;padding-bottom:16px;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">SCHEDULE 14A</font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Proxy Statement Pursuant to Section 14(a) of</font></div><div style="line-height:120%;padding-bottom:16px;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">the Securities Exchange Act of 1934 (Amendment No.         )</font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><div style="padding-left:0px;text-indent:0px;line-height:normal;padding-top:10px;"><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto;width:100%;border-collapse:collapse;text-align:left;"><tr><td colspan="2"></td></tr><tr><td style="width:11%;"></td><td style="width:89%;"></td></tr><tr><td colspan="2" style="vertical-align:top;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="padding-left:13px;text-indent:-14px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Filed by the Registrant </font><font style="font-family:Wingdings;font-size:10pt;">x</font></div></td></tr><tr><td colspan="2" style="vertical-align:top;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="padding-left:13px;text-indent:-14px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Filed by a Party other than the Registrant </font><font style="font-family:Wingdings;font-size:10pt;">o</font></div></td></tr><tr><td colspan="2" style="vertical-align:top;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:left;padding-left:13px;text-indent:-14px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Check the appropriate box:</font></div></td></tr><tr><td style="vertical-align:top;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:left;padding-left:13px;text-indent:-14px;font-size:10pt;"><font style="font-family:Wingdings;font-size:10pt;">o</font></div></td><td style="vertical-align:top;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Preliminary Proxy Statement</font></div></td></tr><tr><td style="vertical-align:top;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:left;padding-left:13px;text-indent:-14px;font-size:10pt;"><font style="font-family:Wingdings;font-size:10pt;">o</font></div></td><td style="vertical-align:top;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Confidential, for Use of the Commission Only (as permitted by Rule 14a&#8209;6(e)(2))</font></div></td></tr><tr><td style="vertical-align:top;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:left;padding-left:13px;text-indent:-14px;font-size:10pt;"><font style="font-family:Wingdings;font-size:10pt;">o</font></div></td><td style="vertical-align:top;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Definitive Proxy Statement</font></div></td></tr><tr><td style="vertical-align:top;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:left;padding-left:13px;text-indent:-14px;font-size:10pt;"><font style="font-family:Wingdings;font-size:10pt;">x</font></div></td><td style="vertical-align:top;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Definitive Additional Materials</font></div></td></tr><tr><td style="vertical-align:top;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:left;padding-left:13px;text-indent:-14px;font-size:10pt;"><font style="font-family:Wingdings;font-size:10pt;">o</font></div></td><td style="vertical-align:top;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Soliciting Material under &#167;240.14a&#8209;12</font></div></td></tr></table></div></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><div style="padding-left:0px;text-indent:0px;line-height:normal;padding-top:10px;"><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto;width:100%;border-collapse:collapse;text-align:left;"><tr><td colspan="3"></td></tr><tr><td style="width:12%;"></td><td style="width:6%;"></td><td style="width:82%;"></td></tr><tr><td colspan="3" style="vertical-align:top;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:center;padding-left:13px;text-indent:-14px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Liquidity Services,&#160;Inc.</font></div></td></tr><tr><td colspan="3" style="vertical-align:top;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:center;padding-left:13px;text-indent:-14px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">(Name of Registrant as Specified In Its Charter)</font></div></td></tr><tr><td colspan="3" style="vertical-align:top;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:center;padding-left:13px;text-indent:-14px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">(Name of Person(s) Filing Proxy Statement, if other than the Registrant)</font></div></td></tr><tr><td colspan="3" style="vertical-align:top;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:left;padding-left:13px;text-indent:-14px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Payment of Filing Fee (Check the appropriate box):</font></div></td></tr><tr><td style="vertical-align:top;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:left;padding-left:13px;text-indent:-14px;font-size:10pt;"><font style="font-family:Wingdings;font-size:10pt;">x</font></div></td><td colspan="2" style="vertical-align:top;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">No fee required.</font></div></td></tr><tr><td style="vertical-align:top;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:left;padding-left:13px;text-indent:-14px;font-size:10pt;"><font style="font-family:Wingdings;font-size:10pt;">o</font></div></td><td colspan="2" style="vertical-align:top;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Fee computed on table below per Exchange Act Rules&#160;14a&#8209;6(i)(1) and 0&#8209;11.</font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:top;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="padding-bottom:1px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">(1)</font></div></td><td style="vertical-align:top;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="padding-bottom:1px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Title of each class of securities to which transaction applies:</font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:top;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="padding-bottom:1px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">(2)</font></div></td><td style="vertical-align:top;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="padding-bottom:1px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Aggregate number of securities to which transaction applies:</font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:top;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="padding-bottom:1px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">(3)</font></div></td><td style="vertical-align:top;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="padding-bottom:1px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule&#160;0&#8209;11 (set forth the amount on which the filing fee is calculated and state how it was determined):</font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:top;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="padding-bottom:1px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">(4)</font></div></td><td style="vertical-align:top;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="padding-bottom:1px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Proposed maximum aggregate value of transaction:</font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:top;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="padding-bottom:1px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">(5)</font></div></td><td style="vertical-align:top;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="padding-bottom:1px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Total fee paid:</font></div></td></tr><tr><td style="vertical-align:top;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:left;padding-left:13px;text-indent:-14px;font-size:10pt;"><font style="font-family:Wingdings;font-size:10pt;">o</font></div></td><td colspan="2" style="vertical-align:top;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Fee paid previously with preliminary materials.</font></div></td></tr><tr><td style="vertical-align:top;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:left;padding-left:13px;text-indent:-14px;font-size:10pt;"><font style="font-family:Wingdings;font-size:10pt;">o</font></div></td><td colspan="2" style="vertical-align:top;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Check box if any part of the fee is offset as provided by Exchange Act Rule&#160;0&#8209;11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing.</font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:top;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="padding-bottom:1px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">(1)</font></div></td><td style="vertical-align:top;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="padding-bottom:1px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Amount Previously Paid:</font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:top;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="padding-bottom:1px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">(2)</font></div></td><td style="vertical-align:top;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="padding-bottom:1px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Form, Schedule or Registration Statement No.:</font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:top;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="padding-bottom:1px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">(3)</font></div></td><td style="vertical-align:top;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="padding-bottom:1px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Filing Party:</font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:top;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="padding-bottom:1px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">(4)</font></div></td><td style="vertical-align:top;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="padding-bottom:1px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Date Filed:</font></div></td></tr></table></div></div><div><br></div><div><div style="line-height:120%;text-align:center;padding-left:1px;text-indent:-2px;font-size:8.5pt;"><font style="font-family:inherit;font-size:8.5pt;">1</font></div><div style="line-height:120%;text-align:justify;padding-left:1px;text-indent:-2px;font-size:8.5pt;"><font style="font-family:inherit;font-size:8.5pt;"><br></font></div></div><hr style="page-break-after:always"><div><div style="line-height:120%;text-align:justify;padding-left:1px;text-indent:-2px;font-size:8.5pt;"><font style="font-family:inherit;font-size:8.5pt;"><br></font></div></div><div><br></div><div style="line-height:120%;text-align:center;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;"><br></font></div><div style="line-height:120%;text-align:center;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;font-weight:bold;">LIQUIDITY SERVICES, INC.</font></div><div style="line-height:120%;text-align:center;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;font-weight:bold;">6931 Arlington Road, Suite 200</font></div><div style="line-height:120%;text-align:center;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;font-weight:bold;">Bethesda, MD 20814</font></div><div style="line-height:120%;text-align:center;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;"><br></font></div><div style="line-height:120%;text-align:center;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;font-weight:bold;">SUPPLEMENT NO. 1 DATED FEBRUARY 3, 2020</font></div><div style="line-height:120%;text-align:center;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;font-weight:bold;">TO THE PROXY STATEMENT</font></div><div style="line-height:120%;text-align:center;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;font-weight:bold;">FOR THE ANNUAL MEETING OF STOCKHOLDERS </font></div><div style="line-height:120%;text-align:center;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;font-weight:bold;">OF LIQUIDITY SERVICES, INC.</font></div><div style="line-height:120%;text-align:center;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;font-weight:bold;">TO BE HELD ON FEBRUARY 20, 2020</font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:126%;padding-bottom:12px;text-align:justify;text-indent:20px;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">This proxy statement supplement (this &#8220;</font><font style="font-family:inherit;font-size:9pt;text-decoration:underline;">Supplement</font><font style="font-family:inherit;font-size:9pt;">&#8221;), dated February 3, 2020, amends and supplements the definitive proxy statement (the &#8220;</font><font style="font-family:inherit;font-size:9pt;text-decoration:underline;">Proxy Statement</font><font style="font-family:inherit;font-size:9pt;">&#8221;) filed by Liquidity Services, Inc. (referred to herein as the &#8220;</font><font style="font-family:inherit;font-size:9pt;text-decoration:underline;">Company,</font><font style="font-family:inherit;font-size:9pt;">&#8221; &#8220;</font><font style="font-family:inherit;font-size:9pt;text-decoration:underline;">we,</font><font style="font-family:inherit;font-size:9pt;">&#8221; &#8220;</font><font style="font-family:inherit;font-size:9pt;text-decoration:underline;">us,</font><font style="font-family:inherit;font-size:9pt;">&#8221; or &#8220;</font><font style="font-family:inherit;font-size:9pt;text-decoration:underline;">our</font><font style="font-family:inherit;font-size:9pt;">&#8221; as the context requires) with the U.S. Securities and Exchange Commission (the &#8220;</font><font style="font-family:inherit;font-size:9pt;text-decoration:underline;">SEC</font><font style="font-family:inherit;font-size:9pt;">&#8221;) on January 28, 2020, and made available to our stockholders in connection with the solicitation of proxies by our Board of Directors for our 2020 Annual Meeting of Stockholders to be held on Thursday, February 20, 2020, at 11:00 a.m., Eastern Time, at the offices of Liquidity Services, Inc. at 6931 Arlington Road, Suite 200, Bethesda, MD 20814 (the &#8220;</font><font style="font-family:inherit;font-size:9pt;text-decoration:underline;">Annual Meeting</font><font style="font-family:inherit;font-size:9pt;">&#8221;).</font></div><div style="line-height:130%;padding-bottom:10px;text-align:left;padding-left:1px;text-indent:0px;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;font-weight:bold;">Explanatory Note</font></div><div style="line-height:126%;padding-bottom:12px;text-align:justify;text-indent:20px;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">This Supplement is being filed with the SEC and is being made available to our stockholders on or about February 3, 2020. There is no change to the record date to determine stockholders entitled to notice of and to vote at the Annual Meeting. As such, only stockholders of record as of the close of business on January 7, 2020 are entitled to receive notice of and to vote at the Annual Meeting and any further adjournments or postponements thereof.</font></div><div style="line-height:130%;text-align:justify;text-indent:18px;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">Except as described in this Supplement, the information provided in the Proxy Statement continues to apply. To the extent that information in this Supplement differs from or updates information contained in the Proxy Statement, our stockholders should rely on the information contained in this Supplement. </font><font style="font-family:inherit;font-size:9pt;font-weight:bold;">The Proxy Statement contains important additional information. This Supplement should only be read in conjunction with the Proxy Statement.</font></div><div style="line-height:130%;text-align:justify;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;"><br></font></div><div style="line-height:130%;padding-bottom:10px;text-align:left;padding-left:1px;text-indent:0px;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;font-weight:bold;">Supplement to Proposal No. 4</font></div><div style="line-height:126%;padding-bottom:12px;text-align:justify;text-indent:20px;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">Proposal No. 4 in the Proxy Statement relates to the approval of an amendment and restatement of our Second Amended and Restated 2006 Omnibus Long-Term Incentive Plan (the &#8220;Third A&amp;R Plan&#8221;). This Supplement is being filed to supplement Proposal No. 4 to provide additional information about our burn rate under the Third A&amp;R Plan and reflects as separate amounts the performance-based awards granted and earned in each year for the past three fiscal years.</font></div><div style="line-height:126%;text-align:justify;text-indent:20px;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">&#8220;The following table provides details regarding the number of equity awards granted annually under the Third A&amp;R Plan for each of the past three fiscal years by type of award and includes separate disclosure regarding the performance-based awards granted and earned in each year for the past three fiscal years as well as our weighted average shares of common stock outstanding:</font></div><div style="line-height:126%;text-align:justify;text-indent:20px;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;"><br></font></div><div style="line-height:120%;font-size:10pt;"><div style="padding-left:0px;text-indent:0px;line-height:normal;padding-top:10px;"><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman;font-size:10pt;width:100%;border-collapse:collapse;text-align:left;"><tr><td colspan="4"></td></tr><tr><td style="width:58%;"></td><td style="width:14%;"></td><td style="width:15%;"></td><td style="width:13%;"></td></tr><tr><td style="vertical-align:middle;background-color:#d6dce4;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:justify;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;font-weight:bold;">Share Element</font></div></td><td style="vertical-align:middle;background-color:#d6dce4;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:center;padding-left:1px;text-indent:-2px;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;font-weight:bold;">2019</font></div></td><td style="vertical-align:middle;background-color:#d6dce4;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:center;padding-left:1px;text-indent:-2px;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;font-weight:bold;">2018</font></div></td><td style="vertical-align:middle;background-color:#d6dce4;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:center;padding-left:1px;text-indent:-2px;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;font-weight:bold;">2017</font></div></td></tr><tr><td style="vertical-align:middle;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:justify;padding-left:1px;text-indent:-2px;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">Time-Based Stock Options Granted</font></div></td><td style="vertical-align:middle;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:center;padding-left:1px;text-indent:-2px;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">563,066</font></div></td><td style="vertical-align:middle;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:center;padding-left:1px;text-indent:-2px;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">258,346</font></div></td><td style="vertical-align:middle;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:center;padding-left:1px;text-indent:-2px;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">158,115</font></div></td></tr><tr><td style="vertical-align:middle;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:justify;padding-left:1px;text-indent:-2px;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">Time-Based Full-Value Awards Granted</font></div></td><td style="vertical-align:middle;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:center;padding-left:1px;text-indent:-2px;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">325,128</font></div></td><td style="vertical-align:middle;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:center;padding-left:1px;text-indent:-2px;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">367,221</font></div></td><td style="vertical-align:middle;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:center;padding-left:1px;text-indent:-2px;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">516,602</font></div></td></tr><tr><td style="vertical-align:middle;background-color:#d6dce4;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:justify;padding-left:1px;text-indent:-2px;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">Performance-Based Stock Options Granted</font></div></td><td style="vertical-align:middle;background-color:#d6dce4;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:center;padding-left:1px;text-indent:-2px;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">571,250</font></div></td><td style="vertical-align:middle;background-color:#d6dce4;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:center;padding-left:1px;text-indent:-2px;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">418,780</font></div></td><td style="vertical-align:middle;background-color:#d6dce4;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:center;padding-left:1px;text-indent:-2px;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">109,300</font></div></td></tr><tr><td style="vertical-align:middle;background-color:#d6dce4;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:justify;padding-left:1px;text-indent:-2px;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">Performance-Based Stock Options Earned/Vested</font></div></td><td style="vertical-align:middle;background-color:#d6dce4;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:center;padding-left:1px;text-indent:-2px;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">224,530</font></div></td><td style="vertical-align:middle;background-color:#d6dce4;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:center;padding-left:1px;text-indent:-2px;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">0</font></div></td><td style="vertical-align:middle;background-color:#d6dce4;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:center;padding-left:1px;text-indent:-2px;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">1,408</font></div></td></tr><tr><td style="vertical-align:middle;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:justify;padding-left:1px;text-indent:-2px;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">Performance-Based Full-Value Awards Granted</font></div></td><td style="vertical-align:middle;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:center;padding-left:1px;text-indent:-2px;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">287,600</font></div></td><td style="vertical-align:middle;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:center;padding-left:1px;text-indent:-2px;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">915,180</font></div></td><td style="vertical-align:middle;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:center;padding-left:1px;text-indent:-2px;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">332,750</font></div></td></tr><tr><td style="vertical-align:middle;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:justify;padding-left:1px;text-indent:-2px;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">Performance-Based Full-Value Awards Earned/Vested</font></div></td><td style="vertical-align:middle;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:center;padding-left:1px;text-indent:-2px;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">235,807</font></div></td><td style="vertical-align:middle;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:center;padding-left:1px;text-indent:-2px;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">0</font></div></td><td style="vertical-align:middle;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:center;padding-left:1px;text-indent:-2px;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">964</font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;height:18px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;height:18px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;height:18px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;height:18px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td></tr><tr><td style="vertical-align:middle;background-color:#d6dce4;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:justify;padding-left:1px;text-indent:-2px;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">Weighted-Average Shares of Common Stock Outstanding During the Fiscal Year</font></div></td><td style="vertical-align:middle;background-color:#d6dce4;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:center;padding-left:1px;text-indent:-2px;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">33,062,976</font></div></td><td style="vertical-align:middle;background-color:#d6dce4;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:center;padding-left:1px;text-indent:-2px;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">32,095,491</font></div></td><td style="vertical-align:middle;background-color:#d6dce4;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:center;padding-left:1px;text-indent:-2px;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">31,402,921&#8221;</font></div></td></tr></table></div></div><div style="line-height:126%;text-align:justify;text-indent:20px;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;"><br></font></div><div style="line-height:130%;padding-bottom:10px;text-align:left;padding-left:1px;text-indent:0px;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;"><br></font></div><div style="line-height:130%;padding-bottom:10px;text-align:left;padding-left:1px;text-indent:0px;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;"><br></font></div><div style="line-height:130%;padding-bottom:10px;text-align:left;padding-left:1px;text-indent:0px;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;"><br></font></div><div><br></div><div><div style="line-height:120%;text-align:center;padding-left:1px;text-indent:-2px;font-size:8.5pt;"><font style="font-family:inherit;font-size:8.5pt;">2</font></div><div style="line-height:120%;text-align:justify;padding-left:1px;text-indent:-2px;font-size:8.5pt;"><font style="font-family:inherit;font-size:8.5pt;"><br></font></div></div><hr style="page-break-after:always"><div><div style="line-height:120%;text-align:justify;padding-left:1px;text-indent:-2px;font-size:8.5pt;"><font style="font-family:inherit;font-size:8.5pt;"><br></font></div></div><div><br></div><div style="line-height:130%;padding-bottom:10px;text-align:left;padding-left:1px;text-indent:0px;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;font-weight:bold;">Voting</font></div><div style="line-height:126%;padding-bottom:10px;text-align:justify;padding-left:21px;text-indent:-2px;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">Our stockholders should note the following:</font></div><table cellpadding="0" cellspacing="0" style="padding-bottom:12px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:37px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:130%;font-size:9pt;padding-left:20px;"><font style="font-family:inherit;font-size:9pt;">&#8226;</font></div></td><td style="vertical-align:top;"><div style="line-height:130%;text-align:justify;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">We will not make available or distribute, and our stockholders do not need to sign new proxy cards or submit new voting instructions.</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-bottom:12px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:37px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:130%;font-size:9pt;padding-left:20px;"><font style="font-family:inherit;font-size:9pt;">&#8226;</font></div></td><td style="vertical-align:top;"><div style="line-height:130%;text-align:justify;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">Proxy cards or voting instructions received and providing direction on the proposals to be considered at the Annual Meeting will remain valid and in effect and will be voted as directed.</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-bottom:12px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:37px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:130%;font-size:9pt;padding-left:20px;"><font style="font-family:inherit;font-size:9pt;">&#8226;</font></div></td><td style="vertical-align:top;"><div style="line-height:130%;text-align:justify;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">If a stockholder has already submitted a proxy card or voting instructions, such stockholder does not need to resubmit its proxy card or voting instructions with different directions, unless such stockholder wishes to change any previously cast votes. Each stockholder may revoke or change his, her or its vote at any time before the applicable proxy has been exercised by (1) sending written notice to the Corporate Secretary of the Company at Liquidity Services,&#160;Inc., 6931 Arlington Road, Suite 200, Bethesda, MD 20814, Attention: VP, General Counsel and Corporate Secretary; (2) delivering a valid, later-dated proxy or a later-dated vote by telephone or on the Internet prior to the Annual Meeting; or (3) voting in person at Annual Meeting.</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-bottom:12px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:37px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:130%;font-size:9pt;padding-left:20px;"><font style="font-family:inherit;font-size:9pt;">&#8226;</font></div></td><td style="vertical-align:top;"><div style="line-height:130%;text-align:justify;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">If you are a beneficial owner of shares, you can revoke your proxy before it is exercised by contacting your broker, bank or other nominee and submitting new voting instructions. You may also vote in person at the Annual Meeting if you obtain a legal proxy from your broker, bank or other nominee and present it to the inspectors of election with your ballot to vote at the Annual Meeting.</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-bottom:10px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:37px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:130%;font-size:9pt;padding-left:20px;"><font style="font-family:inherit;font-size:9pt;">&#8226;</font></div></td><td style="vertical-align:top;"><div style="line-height:130%;text-align:justify;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">We have the right and ability to submit or amend the content of our proposals at any time prior to the Annual Meeting.</font></div></td></tr></table><div style="line-height:130%;padding-bottom:10px;text-align:left;padding-left:1px;text-indent:0px;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;font-weight:bold;">Additional Information and Where to Find It</font></div><div style="line-height:126%;padding-bottom:12px;text-align:justify;text-indent:20px;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">This supplemental disclosure may be deemed to be solicitation material in respect of the solicitation of proxies from stockholders for the Annual Meeting to be held on February 20, 2020. The Company has filed with the SEC and made available to the holders of its common stock as of January 7, 2020, the Proxy Statement containing important information relating to among other things, Proposal No. 4. </font><font style="font-family:inherit;font-size:9pt;font-weight:bold;">STOCKHOLDERS ARE URGED TO READ THE PROXY STATEMENT, AS AMENDED AND SUPPLEMENTED BY THIS SUPPLEMENT, CAREFULLY AND IN ITS ENTIRETY BECAUSE IT CONTAINS IMPORTANT INFORMATION RELATING TO THE PROPOSAL.</font></div><div style="line-height:126%;text-align:justify;text-indent:20px;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">Each stockholder&#8217;s vote regarding the proposals set forth in the Proxy Statement (including, but not limited to Proposal No. 4) is important. We ask that our stockholders vote on the proposals described in the Proxy Statement. Copies of the Proxy Statement, our Annual Report on Form 10-K for the fiscal year ended September 30, 2019, and this Supplement are available without charge by visiting our website, </font><a style="font-family:inherit;font-size:8.5pt;color:#000000;font-style:italic;text-decoration:underline;" href="#"><font style="font-family:inherit;font-size:8.5pt;color:#000000;font-style:italic;text-decoration:underline;">www.liquidityservices.com</font></a><font style="font-family:inherit;font-size:9pt;">, or upon written request to us at Liquidity Services, Inc., 6931 Arlington Road, Suite 200, Bethesda, MD 20814, Attn: Corporate Secretary. The Company&#8217;s copying costs will be charged if copies of exhibits to the Annual Report are requested. </font></div><div style="line-height:120%;text-align:left;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;"><br></font></div><div><br></div><div><div style="line-height:120%;text-align:center;padding-left:1px;text-indent:-2px;font-size:8.5pt;"><font style="font-family:inherit;font-size:8.5pt;">3</font></div><div style="line-height:120%;text-align:justify;padding-left:1px;text-indent:-2px;font-size:8.5pt;"><font style="font-family:inherit;font-size:8.5pt;"><br></font></div></div>	</div></body>
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