LiqTech International Announces First Quarter 2023 Financial Results

BALLERUP, Denmark, May 11, 2023 /PRNewswire/ -- LiqTech International, Inc. (NASDAQ: LIQT) ("LiqTech"), a clean technology company that manufactures and markets highly specialized filtration technologies, today announced its financial results for the first quarter of 2023 for the period ended March 31, 2023.

Q1 2023 Financial Highlights

  • Revenue of $4.0 million, a 10% increase from Q1 2022.
  • Gross profit margin of 10% compared to 7% in Q1 2022.
  • Operating expense of $2.6 million, down 28% from Q1 2022.
  • Net loss of $(2.4) million, compared to $(3.7) million in Q1 2022.
  • Strong ending cash balance of $14.3 million.

Recent Operational Highlights

  • Signed commercial contracts for delivery of five pool systems and increased order intake of both ceramic membrane and DPF orders
  • Entered distribution agreement with Singapore-based Liquinex to supply silicon carbide ceramic membranes
  • Established distribution agreement with Silicon Filter for Chinese phosphoric acid purification market

Management Commentary

Fei Chen, CEO of LiqTech, stated, "The commercial strategy we put into place is beginning to deliver the intended results.  In particular, we have achieved a good improvement in our recurring business, including swimming pool filtration systems, diesel particulate filters and ceramic membranes with a combined sequential quarterly revenue growth of 27% and improved profitability. We continue to believe there are excellent opportunities to expand the use of our technologies within our key market verticals and we look forward to gaining continued traction. We are also making steady progress in building our sales pipeline of larger filtration systems for the oil and gas, acid purification, and broader water treatment markets."

"We have recently signed multiple distribution agreements for key geographies and market segments to accelerate the adoption of our unique technologies.  As previously announced, we recently entered into distribution agreements with key partners to advance adoption of our filtration systems for phosphoric acid purification within China, and water treatment in Southeast Asia. We believe these agreements will expand our market reach into these important end markets. Additionally, our distribution agreement with NESR is progressing well--our two companies are becoming more closely aligned and we have established target opportunities for 2023 for key ESG applications in the Middle East."

"Our efforts to expand the commercialization of our core filtration technologies is being matched by our internal focus on improving our manufacturing efficiency in order to improve gross margins. We have made excellent progress in implementing more efficient manufacturing processes to achieve improvements in our product and system contribution margins, which have now reached their highest levels in more than two years, despite ongoing remediation work and manufacturing optimization costs. These improvements within manufacturing, along with a more favorable sales mix and a 28% decrease in operating expense have meaningfully reduced our quarterly revenue breakeven point to approximately $7 million, as previously announced. We look forward to making continued progress in the second quarter as we execute against our commercial objectives," Chen concluded.

Q1 2023 Financial Results

Revenue for Q1 2023 was $4.0 million compared to $3.6 million in Q1 2022, representing an increase of 10%. The revenue increase was due primarily to increased sales activity within our systems business, with higher deliveries of pool and marine filtration systems and increased aftermarket sales, partly offset by lower sales of Ceramic products.

Gross profit for Q1 2023 was $0.4 million, reflecting a gross profit margin of 9.8%, compared to $0.2 million, or a gross profit margin of 6.8%, in Q1 2022. The increase in gross profit was due largely to higher sales, a favorable product sales mix and improved product contribution margins.

Total operating expense for Q1 2023 was $2.6 million compared to $3.6 million in Q1 2022. The decrease was attributable primarily to the cost reduction and reorganization actions that were taken during 2022, resulting in significant reductions in ordinary SG&A.

Other Income (Expense) in Q1 2023 was $(0.2) million compared to $(0.4) million in Q1 2022 with the improvement reflecting the repayment of the convertible note, interest income, partly offset by loss on foreign currency transactions due to the USD appreciation against the EURO.

Net Loss in Q1 2023 was $(2.4) million compared to $(3.7) million in Q1 2022, due mainly to increased revenue, decreased operating expense attributable to the cost reduction and reorganization efforts, and an improved capital structure.

Cash on hand (including restricted cash) on March 31, 2023, was $14.3 million compared to $16.6 million on December 31, 2022.  

Q2 2023 Outlook

The Company expects Q2 2023 revenue of approximately $5.0 million, compared to $4.0 million for Q1 2023.

Conference Call Details

Date and Time: Thursday, May 11, 2023, at 9:00 a.m. ET

Call-in Information: Interested parties can access the conference call by dialing (833) 535-2206 or (412) 902-6741.

Webcast: Interested parties can access the conference call via a live webcast, which is available in the Investor Relations section of the Company's website at or at

Replay: A teleconference replay of the call will be available until May 18, 2023, at (877) 344-7529 or (412) 317-0088, confirmation # 3502560.

About LiqTech International Inc.

LiqTech International, Inc., a Nevada corporation, is a clean technology company that provides state-of-the-art ceramic silicon carbide filtration technologies for gas and liquid purification. LiqTech's silicon carbide membranes are designed to be used in the most challenging water purification applications, and its silicon carbide filters are used to control diesel exhaust soot emissions. Applying nanotechnology, LiqTech develops products using its proprietary silicon carbide technology, resulting in a wide range of component membranes, membrane systems, and filters for both microfiltration and ultrafiltration applications. By incorporating LiqTech's SiC liquid membrane technology with the Company´s extensive systems design experience and capabilities, LiqTech offers unique, turnkey solutions for the most difficult water purification applications.

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Forward–Looking Statement

This press release contains "forward-looking statements."  Although the forward-looking statements in this release reflect the good faith judgment of management, forward-looking statements are inherently subject to known and unknown risks and uncertainties that may cause actual results to be materially different from those discussed in these forward-looking statements.  Readers are urged to carefully review and consider the various disclosures made by us in the reports filed with the Securities and Exchange Commission, including the risk factors that attempt to advise interested parties of the risks that may affect our business, financial condition, results of operation, and cash flows.  If one or more of these risks or uncertainties materialize, or if the underlying assumptions prove incorrect, our actual results may vary materially from those expected or projected.  Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this release.

We assume no obligation to update any forward-looking statements to reflect any event or circumstance that may arise after the date of this release.


   As of      As of  
  March 31,   December 31,
   2023     2022 
Current Assets:      
Cash and restricted cash  $         14.309.933    $              16.597.371
Accounts receivable, net of allowance for doubtful accounts of $60,628 and $59,559 at March 31, 2023 and December 31, 2022, respectively               2.736.043                     2.310.344
Inventories, net of allowance for excess and obsolete inventory of $675,137 and $663,227 at March 31, 2023 and December 31, 2022, respectively               4.421.748                     4.062.001
Contract Assets               2.447.668                     2.253.295
Prepaid expenses               2.088.530                     1.720.902
Assets Held for Sale                 734.709                        723.872
Total Current Assets             26.738.631                   27.667.785
Other Assets:      
Property and equipment, net of accumulated depreciation of $9,774,851 and $9,046,499 at March 31, 2023 and December 31, 2022, respectively              7.934.496                     8.296.807
Operating lease right-of-use assets              3.190.273                     3.271.996
Deposits and other assets                 457.398                        450.038
Intangible assets, net of accumulated amortization of $472,098 and $438,250 at March 31, 2023 and December 31, 2022, respectively                 190.779                        212.933
Goodwill                 230.157                        226.096
Total Other Assets            12.003.103                   12.457.870
Total Assets  $         38.741.734    $              40.125.655
   As of      As of  
  March 31,   December 31,
   2023     2022 
Current Liabilities:      
Accounts payable  $          2.215.226    $               1.389.355
Accrued expenses              2.699.232                     3.087.206
Current portion of finance lease obligation                 410.060                        399.198
Current portion of operating lease obligations                 579.552                        561.182
Contract Liabilities                 710.604                        649.557
Total Current Liabilities              6.614.674                     6.086.498
Long term deferred tax liability                 142.946                        154.645
Finance lease obligations, net of current portion              2.322.913                     2.384.011
Operating lease liabilities, net of current portion              2.610.721                     2.710.815
Senior promissory notes payable, less current portion              5.564.842                     5.480.314
Total Long-Term Liabilities            10.641.422                   10.729.785
Total Liabilities            17.256.096                   16.816.283
Agreements and Contingencies See Note 9      
Stockholders' Equity:      
Common stock; par value $0.001, 100,000,000 shares authorized, 45,271,441 and 43,986,079 shares issued and outstanding at March 31, 2023 and December 31, 2022, respectively                   45.270                          43.986
Additional paid-in capital            97.092.877                   96.936.988
Accumulated deficit          (69.740.538)                 (67.351.035)
Other comprehensive income, net            (5.911.971)                   (6.320.567)
Total Stockholders' Equity            21.485.638                   23.309.372
Total Liabilities and Stockholders' Equity  $       38.741.734    $              40.125.655


    For the Three Months Ended
    March 31,
    2023   2022
Revenue    $    4.011.519    $      3.637.236
Cost of Goods Sold          3.620.177            3.391.695
Gross Profit              391.342                245.541


Operating Expenses:        
Selling expenses    $    1.182.435    $      1.059.948
General and administrative expenses          1.058.949            1.916.517
Research and development expenses              342.619                602.737
Total Operating Expense          2.584.003            3.579.202
Loss from Operations        (2.192.661)          (3.333.661)
Other Income (Expense)        
Interest and other income                51.673                        99
Interest expense             (12.001)             (206.461)
Amortization discount on Convertible note             (84.528)             (297.338)
Gain (Loss) on currency transactions            (166.278)                  75.993
Total Other Income (Expense)            (211.134)             (427.707)
Loss Before Income Taxes         (2.403.795)          (3.761.368)
Income Tax Benifit             (14.292)               (14.944)
Net Loss    $  (2.389.503)          (3.746.424)
Basic and Diluted Loss Per Share    $           (0,05)    $             (0,18)
Basic and Diluted Weighted Average Common Shares Outstanding        45.228.596          21.350.455

Conference Call