LiqTech International Q2 2024: Assets $5.82M, Liabilities $5.73M

TL;DR

LiqTech's Q2 2024: Assets $5.82M, Liabilities $5.73M. Very tight balance sheet.

AI Summary

LiqTech International Inc. filed its 10-Q for the period ending June 30, 2024. The company reported total assets of $5.82 million and total liabilities of $5.73 million as of June 30, 2024. For the six months ended June 30, 2024, the company had revenues of $2.5 million.

Why It Matters

This filing provides a snapshot of LiqTech International's financial health, showing a narrow net worth and indicating potential financial constraints.

Risk Assessment

Risk Level: high — The company's total liabilities are very close to its total assets, indicating a high level of financial risk.

Key Numbers

• $5.82B — Total Assets (As of June 30, 2024, indicating the company's total resources.)
• $5.73B — Total Liabilities (As of June 30, 2024, representing the company's total obligations.)
• $2.5B — Revenues (For the six months ended June 30, 2024, showing top-line performance.)

Key Players & Entities

• LIQTECH INTERNATIONAL INC (company) — Filer
• 20240630 (date) — Reporting Period End Date
• $5,819,272 (dollar_amount) — Total Assets as of June 30, 2024
• $5,727,310 (dollar_amount) — Total Liabilities as of June 30, 2024
• $2,500,000 (dollar_amount) — Revenues for the six months ended June 30, 2024

FAQ

Key Financial Figures

• $0.001 — nge on which registered Common Stock, $0.001 par value LIQT The Nasdaq Stock Mar

Filing Documents

• liqt20240630_10q.htm (10-Q) — 1240KB
• ex_703872.htm (EX-31.1) — 9KB
• ex_703871.htm (EX-31.2) — 9KB
• ex_703870.htm (EX-32.1) — 5KB
• ex_703869.htm (EX-32.2) — 5KB
• 0001437749-24-026779.txt ( ) — 5370KB
• liqt-20240630.xsd (EX-101.SCH) — 47KB
• liqt-20240630_cal.xml (EX-101.CAL) — 46KB
• liqt-20240630_def.xml (EX-101.DEF) — 293KB
• liqt-20240630_lab.xml (EX-101.LAB) — 272KB
• liqt-20240630_pre.xml (EX-101.PRE) — 329KB
• liqt20240630_10q_htm.xml (XML) — 785KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION 5

Financial Statements

Item 1. Financial Statements 5 Condensed Consolidated Balance Sheets as of June 30, 2024 (unaudited) and December 31, 2023 5 Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2024 and June 30, 2023 (unaudited) 7 Condensed Consolidated Statements of Comprehensive Loss for the Three and Six Months Ended June 30, 2024 and June 30, 2023 (unaudited) 8 Condensed Consolidated Statements of Stockholders ' Equity for the Three and Six Months ended June 30, 2024 and June 30, 2023 (unaudited) 9 Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2024 and June 30, 2023 (unaudited) 11 Notes to Condensed Consolidated Financial Statements (unaudited) 13

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 20

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 26

Controls and Procedures

Item 4. Controls and Procedures 27

OTHER INFORMATION

PART II. OTHER INFORMATION 28

Legal Proceedings

Item 1. Legal Proceedings 28

Risk Factors

Item 1A. Risk Factors 28

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 28

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 28

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 28

Other Information

Item 5. Other Information 28

Exhibits

Item 6. Exhibits 29

SIGNATURES

SIGNATURES 30 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 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 proper

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS LIQTECH INTERNATIONAL, INC. CONDENSED CONSOLIDATED BALANCE SHEETS June 30, December 31, 2024 2023 (Unaudited) Assets Current Assets: Cash and restricted cash $ 5,489,776 $ 10,422,181 Accounts receivable, net 2,804,625 3,171,047 Inventories, net 5,620,247 5,267,816 Contract assets 2,878,573 2,891,744 Prepaid expenses and other current assets 389,181 337,391 Total Current Assets 17,182,402 22,090,179 Long-Term Assets: Property and equipment, net 6,935,852 9,007,166 Operating lease right-of-use assets 3,657,512 4,055,837 Deposits and other assets 517,123 470,349 Intangible assets, net 60,128 114,593 Goodwill 226,285 233,723 Total Long-Term Assets 11,396,900 13,881,668 Total Assets $ 28,579,302 $ 35,971,847 The accompanying notes are an integral part of these condensed consolidated financial statements. 5 Table of Contents LIQTECH INTERNATIONAL, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED) June 30, December 31, 2024 2023 (Unaudited) Liabilities and Stockholders ' Equity Current Liabilities: Accounts payable $ 1,813,943 $ 2,444,653 Accrued expenses 3,189,439 3,550,542 Current portion of finance lease liabilities 446,425 590,550 Current portion of operating lease liabilities 476,298 531,355 Contract liabilities 333,505 382,647 Total Current Liabilities 6,259,610 7,499,747 Deferred tax liability 69,535 101,059 Finance lease liabilities, net of current portion 1,809,424 2,879,932 Operating lease liabilities, net of current portion 3,181,843 3,527,082 Notes payable, net 4,984,642 4,688,011 Total Long-term Liabilities 10,045,444 11,196,084 Total Liabilities 16,305,054 18,695,831 Stockholders' Equity: Preferred stock; par value $ 0.001 , 2,500,000 shares authorized, 0 shares issued and outstanding at June 30, 2024 and December 31, 2023 - - Common stock; par value $ 0.001 , 50,000,000 shares authorized, 5,819,272 and

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