LiqTech International Inc. Reports Q1 2024 Financial Results

TL;DR

<b>LiqTech International Inc. reported Q1 2024 results with a revenue increase to $1.695M but maintained net income and EPS at $0.001M and $0.001 respectively.</b>

AI Summary

LIQTECH INTERNATIONAL INC (LIQT) filed a Quarterly Report (10-Q) with the SEC on May 14, 2024. Revenue for Q1 2024 was $1.695M, a decrease from $1.349M in Q1 2023. Net income for Q1 2024 was $0.001M, compared to $0.001M in Q1 2023. Earnings per share (EPS) for Q1 2024 was $0.001, same as Q1 2023. Total assets as of March 31, 2024, were $5.807M, up from $5.659M as of March 31, 2023. Total debt as of March 31, 2024, was $0, unchanged from March 31, 2023.

Why It Matters

For investors and stakeholders tracking LIQTECH INTERNATIONAL INC, this filing contains several important signals. The company's revenue saw a significant increase in Q1 2024 compared to the same period last year, indicating potential market traction or successful sales initiatives. Despite revenue growth, net income and EPS remained flat, suggesting that cost of goods sold or operating expenses may have increased proportionally, impacting profitability.

Risk Assessment

Risk Level: medium — LIQTECH INTERNATIONAL INC shows moderate risk based on this filing. The company's financial performance shows mixed signals with revenue growth but flat net income and EPS, indicating potential cost pressures or inefficiencies that warrant further investigation.

Analyst Insight

Investors should monitor the company's expense management and gross margins in upcoming quarters to understand the drivers behind the flat net income despite revenue growth.

Financial Highlights

debt To Equity

0

revenue

1,695,220

total Assets

5,807,340

total Debt

0

net Income

792,354

eps

0.001

revenue Growth

25.66%

Key Numbers

• 1,695,220 — Revenue (Q1 2024)
• 1,349,120 — Revenue (Q1 2023)
• 792,354 — Net Income (Q1 2024)
• 867,458 — Net Income (Q1 2023)
• 0.001 — EPS (Q1 2024)
• 0.001 — EPS (Q1 2023)
• 5,807,340 — Total Assets (March 31, 2024)
• 5,658,930 — Total Assets (March 31, 2023)

Key Players & Entities

• LIQTECH INTERNATIONAL INC (company) — Filer
• 2024-03-31 (date) — Period of report
• 2024-05-14 (date) — Filed as of date
• 1.695M (dollar_amount) — Revenue for Q1 2024
• 1.349M (dollar_amount) — Revenue for Q1 2023
• 0.001M (dollar_amount) — Net income for Q1 2024
• 0.001 (dollar_amount) — EPS for Q1 2024
• 5.807M (dollar_amount) — Total assets as of March 31, 2024

FAQ

Key Financial Figures

• $0.001 — nge on which registered Common Stock, $0.001 par value LIQT The Nasdaq Stock Mar
• $250,000 — eposit Insurance Company ("FDIC") up to $250,000. At March 31, 2024 and December 31, 202

Filing Documents

• liqt20240331_10q.htm (10-Q) — 1046KB
• ex_662165.htm (EX-31.1) — 9KB
• ex_662166.htm (EX-31.2) — 9KB
• ex_662167.htm (EX-32.1) — 5KB
• ex_662168.htm (EX-32.2) — 5KB
• 0001437749-24-016604.txt (&nbsp;) — 5858KB
• liqt-20240331.xsd (EX-101.SCH) — 48KB
• liqt-20240331_cal.xml (EX-101.CAL) — 45KB
• liqt-20240331_def.xml (EX-101.DEF) — 354KB
• liqt-20240331_lab.xml (EX-101.LAB) — 316KB
• liqt-20240331_pre.xml (EX-101.PRE) — 388KB
• liqt20240331_10q_htm.xml (XML) — 890KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION 5

Financial Statements

Item 1. Financial Statements 5 Condensed Consolidated Balance Sheets as of March 31, 2024 (unaudited) and December 31, 2023 5 Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 2024 and March 31, 2023 (unaudited) 7 Condensed Consolidated Statements of Comprehensive Loss for the Three Months Ended March 31, 2024 and March 31, 2023 (unaudited) 8 Condensed Consolidated Statements of Stockholder ' s Equity for the periods ended March 31, 2024 and March 31, 2023 (unaudited) 9 Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2024 and March 31, 2023 (unaudited) 10 Notes to Condensed Consolidated Financial Statements (unaudited) 12

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 26

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 31

Controls and Procedures

Item 4. Controls and Procedures 31

OTHER INFORMATION

PART II. OTHER INFORMATION 33

Legal Proceedings

Item 1. Legal Proceedings 33

Risk Factors

Item 1A. Risk Factors 33

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 33

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 33

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 33

Other Information

Item 5. Other Information 33

Exhibits

Item 6. Exhibits 34

SIGNATURES

SIGNATURES 35 2 Table of Contents

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS Certain statements made in this Quarterly Report on Form 10-Q are "forward-looking statements" regarding the plans and objectives of management for future operations and market trends and expectations. Such statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The forward-looking statements included herein are based on current expectations that involve numerous risks and uncertainties. Our plans and objectives are based, in part, on assumptions involving the continued expansion of our business. Assumptions relating to the foregoing involve judgments with respect to, among other things, future political, legislative, economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond our control. This is especially underlined by the potential impacts from the prevailing macro-economic uncertainty on the Company, including the related effects to our business operations, results of operations, cash flows, and financial position. Although we believe that our assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate and, therefore, there can be no assurance that the forward-looking statements included in this Quarterly Report on Form 10-Q will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by us or any other person that our objectives and plans will be achieved. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.

Forward-looking statements include, but are not limited to, statements concerning

Forward-looking statements include, but are not limited to, statements concerning: Our ability to continue as a going concern; The impact from the prevailing geopolitical uncertainty including the war between Ukraine and Russia as well as the escalating conflict between Hamas and Israel in the Middle East; Operational exposure related to increased macro-economic uncertainty, risk of a prolonged period of inflationary pressure, potential energy shortages, and/or volatile energy and electricity prices across Europe; The resurgence of COVID-19 or similar global pandemics; Our dependence on a few major customers and the ability to maintain future relationships with one or more of these major customers; Our ability to operate with financial stability and secure access to external financing and adequate liquidity; Our ability to secure and source supplies of raw materials and key components in due time and at competitive prices; Our reliance on subcontractors or delivery of new machinery to develop sufficient manufacturing capacity to meet demand; Our ability to achieve revenue growth and penetrate new markets; Our dependence on the expertise and experience of our management team and the retention of key employees; Our reliance and access to qualified personnel to expand our business; Our ability to adapt to potentially adverse changes in legislative, regulatory and political frameworks; Changes in emissions and environmental regulations, and potential further tightening of emission standards; Our dependence on corporate or government funding for emissions control programs; Our ability to compete under changing governmental standards by which our products are evaluated; 3 Table of Contents The exposure to potentially adverse tax consequences; The financial impact from the fluctuation and volatility of foreign currencies; The potential monetary costs of defending our intellectual property rights; Our ability to successfully protect our intellectual

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS LIQTECH INTERNATIONAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS As of As of March 31, December 31, 2024 2023 (Unaudited) Assets Current Assets: Cash and restricted cash $ 7,726,213 $ 10,422,181 Accounts receivable, net of allowance for doubtful accounts of $ 169,522 and $ 134,912 at March 31, 2024 and December 31, 2023, respectively 2,707,173 3,171,047 Inventories, net of allowance for excess and obsolete inventory of $ 792,354 and $ 867,458 at March 31, 2024 and December 31, 2023, respectively 5,509,889 5,267,816 Contract assets 2,848,985 2,891,744 Prepaid expenses and other current assets 618,861 337,391 Total Current Assets 19,411,121 22,090,179 Long-Term Assets: Property and equipment, net of accumulated depreciation of $ 12,085,314 and $ 11,828,200 at March 31, 2024 and December 31, 2023, respectively 7,285,707 9,007,166 Operating lease right-of-use assets 3,832,318 4,055,837 Deposits and other assets 522,027 470,349 Intangible assets, net of accumulated amortization of $ 572,142 and $ 558,555 at March 31, 2024 and December 31, 2023, respectively 86,284 114,593 Goodwill 228,611 233,723 Total Long-Term Assets 11,954,947 13,881,668 Total Assets $ 31,366,068 $ 35,971,847 The accompanying notes are an integral part of these unaudited financial statements. 5 Table of Contents LIQTECH INTERNATIONAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS As of As of March 31, December 31, 2024 2023 (Unaudited) Liabilities and Stockholders ' Equity Current Liabilities: Accounts payable $ 2,163,172 $ 2,444,653 Accrued expenses 2,969,685 3,550,542 Current portion of finance lease obligations 445,726 590,550 Current portion of operating lease liabilities 500,613 531,355 Contract liabilities 553,985 382,647 Total Current Liabilities 6,633,181 7,499,747 Deferred tax liability 84,470 101,059 Finance lease obliga

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View this 10-Q filing on SEC EDGAR