Document_And_Entity_Informatio
Document And Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Aug. 11, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'LIQTECH INTERNATIONAL INC | ' |
Document Type | '10-Q | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Common Stock, Shares Outstanding | ' | 27,212,500 |
Amendment Flag | 'false | ' |
Entity Central Index Key | '0001307579 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Document Period End Date | 30-Jun-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Consolidated_Balance_Sheets_Cu
Consolidated Balance Sheets (Current Period Unaudited) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Current Assets: | ' | ' |
Cash | $1,265,367 | $4,884,275 |
Accounts receivable, net | 2,893,254 | 2,341,070 |
Other receivables | 42,294 | 231,998 |
Cost in excess of billing | 518,327 | 406,997 |
Inventories | 4,611,248 | 4,258,606 |
Prepaid expenses | 103,169 | 12,021 |
Current deferred tax asset | 41,686 | 104,143 |
Total Current Assets | 9,475,345 | 12,239,110 |
Property and Equipment, net accumulated depreciation | 5,201,068 | 5,829,404 |
Other Assets: | ' | ' |
Other investments | 6,824 | 6,882 |
Long term deferred tax asset | 2,628,557 | 1,863,349 |
Other intangible assets | 21,623 | 24,687 |
Deposits | 272,904 | 271,916 |
Total Other Assets | 2,929,908 | 2,166,834 |
Total Assets | 17,606,321 | 20,235,348 |
Current Liabilities: | ' | ' |
Current portion of capital lease obligations | 192,086 | 208,419 |
Accounts payable | 1,508,008 | 1,586,962 |
Accrued expenses | 1,105,355 | 1,440,522 |
Billing in excess of cost | 89,961 | 96,104 |
Accrued income taxes payable | 2,000 | 2,000 |
Deferred revenue / customers deposit | 267,020 | 1,212,434 |
Total Current Liabilities | 3,164,430 | 4,546,441 |
Long-term capital lease obligations, less current portion | 458,177 | 554,360 |
Total Long-Term Liabilities | 458,177 | 554,360 |
Total Liabilities | 3,622,607 | 5,100,801 |
Stockholders' Equity: | ' | ' |
Common stock; par value $0,001, 100,000,000 shares authorized, 27,212,500 and 27,212,500 shares issued and outstanding at June 30, 2014 and December 31, 2013, respectively | 27,213 | 27,213 |
Additional paid-in capital | 19,103,303 | 18,700,574 |
Accumulated deficit | -3,834,356 | -2,316,784 |
Deferred compensation | -1,018,554 | -1,008,450 |
Other comprehensive income, net | -314,866 | -292,565 |
Non-controlled interest in subsidiaries | 20,974 | 24,559 |
Total Stockholders' Equity | 13,983,714 | 15,134,547 |
Total Liabilities and Stockholders' Equity | $17,606,321 | $20,235,348 |
Consolidated_Balance_Sheets_Cu1
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Common Stock, par value (in Dollars per share) | $0.00 | $0.00 |
Common Stock, shares authorized | 100,000,000 | 100,000,000 |
Common Stock, shares issued | 27,212,500 | 27,212,500 |
Common Stock, shares outstanding | 27,212,500 | 27,212,500 |
Unaudited_Consolidated_Stateme
(Unaudited) Consolidated Statements of Operations (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Net Sales | $3,973,687 | $2,805,921 | $7,171,189 | $6,205,069 |
Cost of Goods Sold | 3,122,473 | 2,513,400 | 5,764,847 | 5,350,525 |
Gross Profit | 851,214 | 292,521 | 1,406,342 | 854,544 |
Operating Expenses: | ' | ' | ' | ' |
Selling expenses | 929,277 | 715,592 | 1,598,824 | 1,289,517 |
General and administrative expenses | 763,524 | 541,824 | 1,436,181 | 1,204,129 |
Non-cash compensation expenses | 172,205 | 743,519 | 392,623 | 774,888 |
Research and development expenses | 39,833 | 111,254 | 140,419 | 258,239 |
Total Operating Expense | 1,904,839 | 2,112,189 | 3,568,047 | 3,526,773 |
Loss from Operations | -1,053,625 | -1,819,668 | -2,161,705 | -2,672,229 |
Other Income (Expense) | ' | ' | ' | ' |
Interest and other income | 10,550 | 2,244 | 13,745 | 2,400 |
Interest (expense) | -10,599 | -12,952 | -22,120 | -24,657 |
Gain (loss) on investments | 1,278 | ' | -841 | ' |
Gain (loss) on currency transactions | -48,112 | 77,199 | -45,325 | -36,974 |
Loss on sale of fixed assets | ' | -2,135 | ' | -2,135 |
Total Other Income (Expense) | -46,883 | 64,356 | -54,541 | -61,366 |
Loss Before Income Taxes | -1,100,508 | -1,755,312 | -2,216,246 | -2,733,595 |
Income Tax Expense (Income) | -337,118 | -444,659 | -695,560 | -741,523 |
Net Loss | -763,390 | -1,310,653 | -1,520,686 | -1,992,072 |
Less Net Loss Attributable To Non-Controlled Interests in Subsidiaries | -1,254 | -2,551 | -3,114 | -14,159 |
Net Loss Attributable To LiqTech | ($762,136) | ($1,308,102) | ($1,517,572) | ($1,977,913) |
Basic Earnings Per Share (in Dollars per share) | ($0.03) | ($0.05) | ($0.06) | ($0.08) |
Weighted Average Common Shares Outstanding (in Shares) | 27,212,500 | 24,359,852 | 27,212,500 | 24,236,362 |
Diluted Earnings Per Share (in Dollars per share) | ($0.03) | ($0.05) | ($0.06) | ($0.08) |
Weighted Average Common Shares Outstanding Assuming Dilution (in Shares) | 27,212,500 | 24,359,852 | 27,212,500 | 24,236,362 |
Unaudited_Consolidated_Stateme1
(Unaudited) Consolidated Statements of Other Comprehensive Income (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Net Income (Loss) | ($763,390) | ($1,310,653) | ($1,520,686) | ($1,992,072) |
Currency Translation, Net of Taxes | 14,003 | 83,648 | -22,200 | -22,799 |
Other Comprehensive Income (Loss) | -749,387 | -1,227,005 | -1,542,886 | -2,014,871 |
Comprehensive Income (Loss) Attributable To Non-controlling Interest in Subsidiaries | 174 | 11,392 | -183 | -216 |
Comprehensive Income (Loss) Attributable To LiqTech International Inc. | ($749,213) | ($1,238,397) | ($1,543,069) | ($2,014,655) |
Unaudited_Consolidated_Stateme2
(Unaudited) Consolidated Statements of Cash Flows (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Cash Flows from Operating Activities: | ' | ' |
Net Income (Loss) | ($1,520,686) | ($1,992,072) |
Adjustments to reconcile net income (loss) to net cash provided by operations: | ' | ' |
Depreciation and amortization | 873,216 | 776,401 |
Non-cash compensation | 392,623 | 774,888 |
Bad debt expense | 107,111 | 47,366 |
Obsolete inventory expense | ' | 36,354 |
Change in deferred tax asset / liability | -702,751 | -739,173 |
(Gain) Loss on sale of equipment | ' | 2,135 |
Changes in assets and liabilities: | ' | ' |
(Increase) decrease in accounts receivable | -469,591 | 1,106,031 |
(Increase) decrease in inventory | -352,642 | -484,523 |
(Increase) decrease in prepaid expenses/deposits | -92,136 | 82,182 |
Increase (decrease) in accounts payable | -78,954 | -1,006,210 |
Increase (decrease) in accrued expenses | -1,280,581 | 70,757 |
Increase (decrease) long term contracts | -117,473 | -84,484 |
Total Adjustments | -1,721,178 | 581,724 |
Net Cash Provided (Used) by Operating Activities | -3,241,864 | -1,410,348 |
Cash Flows from Investing Activities: | ' | ' |
Purchase of property and equipment | -183,008 | -263,433 |
Purchase of Long-term investments | ' | -17,369 |
Net Cash Used by Investing Activities | -183,008 | -280,802 |
Cash Flows from Financing Activities: | ' | ' |
Net (payments) proceeds on capital lease obligation | -112,516 | -106,568 |
Net Cash Provided (Used) by Financing Activities | -112,516 | -106,568 |
Loss on Currency Translation | -81,520 | -9,340 |
Net Increase (Decrease) in Cash and Cash Equivalents | -3,618,908 | -1,807,058 |
Cash and Cash Equivalents at Beginning of Period | 4,884,275 | 3,873,338 |
Cash and Cash Equivalents at End of Period | $1,265,367 | $2,066,280 |
Note_1_Summary_of_Significant_
Note 1 - Summary of Significant Accounting Policies | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Significant Accounting Policies [Text Block] | ' | ||||||||
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||
Business and Basis of Presentation | |||||||||
The consolidated financial statements include the accounts of LiqTech International, Inc. (“Parent”) and its subsidiaries. The terms "Company", “us", "we" and "our" as used in this report refer to Parent and its subsidiaries, which are set forth below. The Company engages in the development, design, production, marketing and sale of liquid filters, diesel particulate air filters and kiln furniture in United States, Canada, Europe, Asia and South America. Set forth below is a description of Parent and each of its subsidiaries: | |||||||||
LiqTech International, Inc., a Nevada corporation organized in July 2004, formerly known as Blue Moose Media, Inc. | |||||||||
LiqTech USA, a Delaware corporation and a wholly-owned subsidiary of Parent formed in May 2011. | |||||||||
LiqTech International AS, a Danish corporation, incorporated on January 15, 2000 (“LiqTech Int. DK”), a 100% owned subsidiary of LiqTech USA, engages in development, design, application, marketing and sales of membranes on ceramic diesel particulate and liquid filters and catalytic converters in Europe, Asia and South America. | |||||||||
LiqTech NA, Inc. (“LiqTech NA”), incorporated in Delaware on July 1, 2005, a 100% owned subsidiary of LiqTech USA as of December 31, 2013, prior to December 31, 2013 LiqTech NA, Inc. was owned 90% by LiqTech International AS and 10% by LiqTech USA, LiqTech NA, Inc. engages in the production, marketing and sale of ceramic diesel particulate and liquid filters and kiln furniture in United States and Canada. | |||||||||
LiqTech Asia (“LiqTech Asia”) a 60% owned subsidiary of LiqTech Int. DK, incorporated in South Korea on July 20, 2006, is currently a dormant subsidiary. | |||||||||
LiqTech Germany (“LiqTech Germany”) a 100% owned subsidiary of LiqTech Int. DK, incorporated in Germany on December 9, 2011, engages in marketing and sale of liquid filters in Germany. | |||||||||
LiqTech PTE Ltd, (“LiqTech Sing”) a 95% owned subsidiary of LiqTech Int. DK, incorporated in Singapore on January 19, 2012, engages in marketing and sale of liquid filters in Singapore and other countries in the area. | |||||||||
The accompanying financial statements are unaudited. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows at June 30, 2014 and 2013 and for the periods then ended have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Company’s December 31, 2013 audited financial statements. The results of operations for the periods ended June 30, 2014 and 2013 are not necessarily indicative of the operating results for the full year. | |||||||||
Consolidation --The consolidated financial statements include the accounts and operations of the Company. The non-controlling interests in the net assets of the subsidiaries are recorded in equity. The non-controlling interests of the results of operations of the subsidiaries are included in the results of operations and recorded as the non-controlling interest in subsidiaries. All material inter-company transactions and accounts have been eliminated in the consolidation. | |||||||||
Functional Currency / Foreign currency translation -- The functional currency of LiqTech International, Inc., LiqTech USA, Inc. and LiqTech NA is the U.S. Dollar. The Functional Currency of LiqTech Int DK is the Danish Krone (“DKK”), the functional currency of LiqTech Germany is the Euro and the functional currency of LiqTech Singapore is the Singapore Dollar, the functional Currency of LiqTech Asia is South Korean Won. The Company’s reporting currency is U.S. Dollar for the purpose of these financial statements. The foreign subsidiaries balance sheet accounts are translated into U.S. Dollars at the period-end exchange rates and all revenue and expenses are translated into U.S. Dollars at the average exchange rates prevailing during the periods ended June 30, 2014 and 2013. Translation gains and losses are deferred and accumulated as a component of other comprehensive income in stockholders’ equity. Transaction gains and losses that arose from exchange rate fluctuations from transactions denominated in a currency other than the functional currency are included in the statement of operations as incurred. | |||||||||
Cash and Cash Equivalents -- The Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. The Company had no balances held in financial institution in the United States in excess of federally insured amounts at June 30, 2014 and December 31, 2013. | |||||||||
Accounts Receivable -- Accounts receivables consist of trade receivables arising in the normal course of business. The Company establishes an allowance for doubtful accounts which reflects the Company’s best estimate of probable losses inherent in the accounts receivable balance. The Company determines the allowance based on known troubled accounts, historical experience, and other currently available evidence. | |||||||||
The roll forward of the allowance for doubtful accounts for the six months ended June 30, 2014 and the year ended December 31, 2013 is as follows: | |||||||||
2014 | 2013 | ||||||||
Allowance for doubtful accounts at the beginning of the period | $ | 608,356 | $ | 1,243,500 | |||||
Bad debt expense | 107,111 | 72,548 | |||||||
Amount of receivables written off | - | (770,738 | ) | ||||||
Effect of currency translation | (31,101 | ) | 63,046 | ||||||
Allowance for doubtful accounts at the end of the period | $ | 684,366 | $ | 608,356 | |||||
Inventory -- Inventory is carried at the lower of cost or market, as determined on the first-in, first-out method. | |||||||||
Property and Equipment -- Property and equipment are stated at cost. Expenditures for major renewals and betterments that extend the useful lives of property and equipment are capitalized, upon being placed in service. Expenditures for maintenance and repairs are charged to expense as incurred. Depreciation is computed for financial statement purposes on a straight-line basis over the estimated useful lives of the assets which range from three to ten years (See Note 3). | |||||||||
Long-Term Investments -- Investments in non-consolidated companies are included in long-term investments in the consolidated balance sheet and are accounted for under the cost method and equity method. For these non-quoted investments, we regularly review the assumptions underlying the operating performance and cash flow forecasts based on information requested from these privately held companies. Generally, this information may be more limited, may not be as timely as and may be less accurate than information available from publicly traded companies. Assessing each investment's carrying value requires significant judgment by management. If it is determined that there is an-other-than-temporary decline in the fair value of a non-public equity security, we write-down the investment to its fair value and record the related write-down as an investment loss in the consolidated statement of operations. | |||||||||
Intangible Assets -- Definite life intangible assets include patents. The Company accounts for definite life intangible assets in accordance with Financial Accounting Standards Board, (“FASB”) Accounting Standards Codification, (“ASC”) Topic 350, “Goodwill and Other Intangible Assets” and amortized the patents on a straight line basis over the estimated useful life of two to ten years. | |||||||||
Revenue Recognition and Sales Incentives -- The Company accounts for revenue recognition in accordance with the Securities and Exchange Commission Staff Accounting Bulletin No. 101, “Revenue Recognition in Financial Statements” (SAB 101), FASB ASC 605 Revenue Recognition. The Company recognizes revenue when rights and risk of ownership have passed to the customer, when there is persuasive evidence of an arrangement, product has been shipped or delivered to the customer, the price and terms are finalized, and collections of resulting receivable is reasonably assured. Products are primarily shipped FOB shipping point at which time title passes to the customer. In some instances the Company uses common carriers for the delivery of products. In these arrangements, sales are recognized upon delivery to the customer. The Company's revenue arrangements with its customers often include early payment discounts and such sales incentives are recorded against sales. | |||||||||
The Company has received various grants from government entities for development and use of silicon carbide membranes in various water filtration and treatment applications. Revenues from grants are recognized on the percentage-of-completion method, measured by the percentage of project costs incurred to date to estimated total project costs for each grant multiplied by the grant income on a project by project basis. This method is used because management considers costs incurred to be the best available measure of progress on contracts in process. | |||||||||
Project costs of the grants include all direct material and labor costs and those indirect costs related to the project. Project costs are capitalized and accreted into cost of sales based on the percentage of the project completed. Should a loss be estimated on an incomplete project it would be recorded in the period in which such a loss is determined. Changes in estimated profitability of a project are recognized in the period in which the revisions are determined. The aggregate of costs incurred and income recognized on incomplete projects are recorded as costs in excess of billings and are shown as a current asset. The aggregate of billings in excess of related costs incurred and income recognized on projects is shown as a current liability. | |||||||||
In Denmark, Value Added Tax (“VAT”) of 25% of the invoice amount is collected in respect of the sales of goods on behalf of tax authorities. The VAT collected is not revenue of the Company; instead, the amount is recorded as a liability on the balance sheet until such VAT is paid to the authorities. | |||||||||
Advertising Cost -- Cost incurred in connection with advertising of the Company’s products is expensed as incurred. Such costs amounted to $12,486 and $20,739, for the six months ended June 30, 2014 and 2013, respectively. | |||||||||
Research and Development Cost -- The Company expenses research and development costs for the development of new products as incurred. Included in operating expense for the six months ended June 30, 2014 and 2013 were $140,419, and $258,239, respectively, of research and development costs. | |||||||||
Income Taxes -- The Company accounts for income taxes in accordance with FASB ASC Topic 740 Accounting for Income Taxes. This statement requires an asset and liability approach for accounting for income taxes. | |||||||||
Loss Per Share -- The Company calculates earnings (loss) per share in accordance with FASB ASC 260 Earnings Per Share. Basic earnings per common share (EPS) are based on the weighted average number of common shares outstanding during each period. Diluted earnings per common share are based on shares outstanding (computed as under basic EPS) and potentially dilutive common shares. Potential common shares included in the diluted earnings per share calculation include in-the-money stock options that have been granted but have not been exercised. | |||||||||
Stock Options -- The Company have granted stock options to certain key employees. See Note 13. During the years presented in the accompanying consolidated financial statements, the Company has granted options. The Company accounts for options in accordance with the provisions of FASB ASC Topic 718, Compensation – Stock Compensation. Non-cash compensation costs of $392,623 and $774,888 have been recognized for the vesting of options granted to employees with an associated recognized tax benefit of $0 for the six months ended June 30, 2014 and 2013, respectively. | |||||||||
Fair Value of Financial Instruments -- The Company accounts for fair value measurements for financial assets and financial liabilities in accordance with FASB ASC Topic 820. The authoritative guidance, which, among other things, defines fair value, establishes a consistent framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring or nonrecurring basis. Fair value is defined as the exit price, representing the amount that would either be received to sell an asset or be paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: | |||||||||
● | Level 1. Observable inputs such as quoted prices in active markets for identical assets or liabilities; | ||||||||
● | Level 2. Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and | ||||||||
● | Level 3. Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. | ||||||||
Unless otherwise disclosed, the fair value of the Company’s financial instruments including cash, accounts receivable, prepaid expenses, investments, accounts payable, accrued expenses, capital lease obligations and notes payable approximates their recorded values due to their short-term maturities. | |||||||||
Accounting Estimates -- The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimated. | |||||||||
Recent Accounting Pronouncements -- In May 2014, the Financial Accounting Standards Board issued a new standard to achieve a consistent application of revenue recognition within the U.S., resulting in a single revenue model to be applied by reporting companies under U.S. generally accepted accounting principles. Under the new model, recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the new standard requires that reporting companies disclose the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The new standard is effective beginning in the first quarter of 2017; early adoption is prohibited. The new standard is required to be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying it recognized at the date of initial application. We have not yet selected a transition method nor have we determined the impact of the new standard on our consolidated condensed financial statements. |
Note_2_Inventory
Note 2 - Inventory | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventory Disclosure [Text Block] | ' | ||||||||
NOTE 2 – INVENTORY | |||||||||
Inventory consisted of the following at June 30, 2014 and December 31, 2013: | |||||||||
2014 | 2013 | ||||||||
Furnace parts and supplies | $ | 1,193,192 | $ | 1,025,225 | |||||
Raw materials | 671,271 | 631,524 | |||||||
Work in process | 1,717,590 | 1,799,888 | |||||||
Finished goods | 1,111,233 | 1,062,865 | |||||||
Reserve for obsolescence | (82,038 | ) | (260,896 | ) | |||||
Net Inventory | $ | 4,611,248 | $ | 4,258,606 | |||||
Note_3_Property_and_Equipment
Note 3 - Property and Equipment | 6 Months Ended | ||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||||||||||||||
Property, Plant and Equipment Disclosure [Text Block] | ' | ||||||||||||||||||||
NOTE 3 – PROPERTY AND EQUIPMENT | |||||||||||||||||||||
Property and equipment consisted of the following at June 30, 2014 and December 31, 2013: | |||||||||||||||||||||
Useful Life | 2014 | 2013 | |||||||||||||||||||
Production equipment | 10-Mar | $ | 11,552,124 | $ | 11,542,740 | ||||||||||||||||
Lab equipment | 10-Mar | 179,896 | 181,432 | ||||||||||||||||||
Computer equipment | 5-Mar | 276,513 | 276,013 | ||||||||||||||||||
Vehicles | 3 | 37,898 | 38,221 | ||||||||||||||||||
Furniture and fixture | 5 | 72,736 | 68,169 | ||||||||||||||||||
Leasehold improvements | 10 | 1,113,238 | 1,059,605 | ||||||||||||||||||
13,232,405 | 13,166,180 | ||||||||||||||||||||
Less Accumulated Depreciation | (8,031,337 | ) | (7,336,776 | ) | |||||||||||||||||
Net Property and Equipment | $ | 5,201,068 | $ | 5,829,404 | |||||||||||||||||
Depreciation expense amounted to $870,152 and $773,447, for the six months ended June 30, 2014 and 2013, respectively. |
Note_4_Investments
Note 4 - Investments | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | ' | ||||||||||||
NOTE 4 – INVESTMENTS | |||||||||||||
The following tables summarize Level 1, 2 and 3 financial assets and financial (liabilities) by their classification in the Statement of Financial Position: | |||||||||||||
As of June 30, 2014 | Level 1 | Level 2 | Level 3 | ||||||||||
Investments | - | - | 6,824 | ||||||||||
Total | - | - | 6,824 | ||||||||||
As of December 31, 2013 | Level 1 | Level 2 | Level 3 | ||||||||||
Investments | - | - | 6,882 | ||||||||||
Total | - | - | 6,882 | ||||||||||
At June 30, 2014 our total investment of $6,824 consisted of an investment in LEA Technology in France to strengthen our sales channels in the French market. | |||||||||||||
At December 31, 2013 our total investment of $6,882 consisted of an investment in LEA Technology in France to strengthen our sales channels in the French market. |
Note_5_DefiniteLife_Intangible
Note 5 - Definite-Life Intangible Assets | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Disclosure Text Block [Abstract] | ' | ||||
Intangible Assets Disclosure [Text Block] | ' | ||||
NOTE 5 - DEFINITE-LIFE INTANGIBLE ASSETS | |||||
At June 30, 2014 and December 31, 2013, definite-life intangible assets, net of accumulated amortization, consisted of patents on the Company’s products of $21,623 and $24,687, respectively. The patents are recorded at cost and amortized over two to ten years. Amortization expense for the six months ended June 30, 2014 and 2013 was $3,064 and $2,954, respectively. | |||||
Expected future amortization expense for the years ended are as follows: | |||||
Year ending December 31, | Amortization | ||||
Expenses | |||||
2014 | $ | 2,871 | |||
2015 | 5,742 | ||||
2016 | 5,742 | ||||
2017 | 3,486 | ||||
2018 | 2,933 | ||||
Thereafter | 849 | ||||
Total Amortization Expenses | $ | 21,623 | |||
Note_6_Leases
Note 6 - Leases | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Leases [Abstract] | ' | ||||
Leases of Lessee Disclosure [Text Block] | ' | ||||
NOTE 6 – LEASES | |||||
Operating Leases -- The Company leases office and production facilities under operating lease agreements expiring in August, 2018, March 2017, February 2017 and December 2016. In some of these lease agreements the Company has the right to extend. | |||||
The future minimum lease payments for non-cancelable operating leases having remaining terms in excess of one year as of June 30, 2014 are as follows: | |||||
Year ending December | Operating Lease Payments | ||||
2014 | $ | 317,256 | |||
2015 | 651,924 | ||||
2016 | 668,935 | ||||
2017 | 494,207 | ||||
2018 | 312,032 | ||||
Thereafter | - | ||||
Total Minimum Lease Payments | $ | 2,444,354 | |||
Lease expense charged to operations was $355,462 and $382,766 for the six months ended June 30, 2014 and 2013, respectively. | |||||
Capital Leases -- The Company leases equipment on various variable rate capital leases currently calling for monthly payments of approximately $12,040, $4,666, $3,021 and $2,152 expiring through April 2017. Included in property and equipment, at June 30, 2014 and December 31, 2013, the Company had recorded equipment on capital lease at $1,586,711 and $1,600,254, respectively, with related accumulated depreciation of $1,005,748 and $907,728, respectively. | |||||
During the six months ended June 30, 2014 and 2013, depreciation expense for equipment on capital lease amounted to $105,977, and $107,003, respectively, and has been included in depreciation expense. During the six months ended June 30, 2014 and 2013, interest expense on a capital lease obligation amounted to $20,968 and $26,307, respectively. | |||||
Future minimum capital lease payments are as follows for the periods ended December 31: | |||||
Capital Lease | |||||
Payments | |||||
2014 | $ | 130,767 | |||
2015 | 224,837 | ||||
2016 | 217,651 | ||||
2017 | 139,755 | ||||
2018 | - | ||||
Thereafter | - | ||||
Total minimum lease payments | 713,010 | ||||
Less amount representing interest | (62,747 | ) | |||
Present value of minimum lease payments | 650,263 | ||||
Less current portion | (192,086 | ) | |||
Long-term lease payments | $ | 458,177 | |||
Note_7_Agreements_and_Commitme
Note 7 - Agreements and Commitments | 6 Months Ended |
Jun. 30, 2014 | |
Disclosure Text Block Supplement [Abstract] | ' |
Commitments Disclosure [Text Block] | ' |
NOTE 7 – AGREEMENTS AND COMMITMENTS | |
401(K) Profit Sharing Plan -- LiqTech NA has a 401(k) profit sharing plan and trust covering certain eligible employees. The amount LiqTech NA contributes is discretionary. For the six months ended June 30, 2014 and 2013, matching contributions were expensed and totaled $7,425 and $7,463, respectively. |
Note_8_Income_Taxes
Note 8 - Income Taxes | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Income Tax Disclosure [Text Block] | ' | ||||||||
NOTE 8 – INCOME TAXES | |||||||||
The Company accounts for income taxes in accordance with FASB ASC Topic 740, Accounting for Income Taxes; which requires the Company to provide a net deferred tax asset or liability equal to the expected future tax benefit or expense of temporary reporting differences between book and tax accounting and any available operating loss or tax credit carry forwards. The amount of and ultimate realization of the benefits from the deferred tax assets for income tax purposes is dependent, in part, upon the tax laws in effect, the Company’s future earnings, and other future events, the effects of which cannot be determined. | |||||||||
The temporary differences, tax credits and carry forwards gave rise to the following deferred tax asset (liabilities) at June 30, 2014 and December 31, 2013: | |||||||||
2014 | 2013 | ||||||||
Vacation accrual | $ | 4,161 | $ | 4,161 | |||||
Allowance for doubtful Accounts | 13,955 | 13,955 | |||||||
Reserve for obsolete inventory | 23,570 | 86,027 | |||||||
Net current tax assets | $ | 41,686 | $ | 104,143 | |||||
Business tax credit carryover | 20,184 | 20,184 | |||||||
Deferred Compensation | 202,309 | 202,309 | |||||||
Net operating loss carryover | 3,132,619 | 2,367,568 | |||||||
Excess of book over tax depreciation | (726,555 | ) | (726,712 | ) | |||||
Long term tax asset | $ | 2,628,557 | $ | 1,863,349 | |||||
In accordance with prevailing accounting guidance, the Company is required to recognize and disclose any income tax uncertainties. The guidance provides a two-step approach to recognizing and measuring tax benefits and liabilities when realization of the tax position is uncertain. The first step is to determine whether the tax position meets the more-likely-than-not condition for recognition and the second step is to determine the amount to be recognized based on the cumulative probability that exceeds 50%. | |||||||||
The amount of and ultimate realization of the benefits from the deferred tax assets for income tax purposes is dependent, in part, upon the tax laws in effect, the Company’s future earnings, and other future events, the effects of which can difficult to determine and can only be estimated. Management estimates that it is more likely than not that the Company will generate adequate net profits to use the deferred tax assets; management has estimated that all of the deferred tax will be realized and consequently, a valuation allowance was not recorded. | |||||||||
As of June 30, 2014, the Company had net operating loss carryovers of approximately $6,481,000 for U.S. Federal purposes expiring through 2033; $3,020,000 for Danish tax purposes which do not expire; $418,000 for German tax purposes which do not expire and $513,000 for Singapore tax purposes which do not expire. | |||||||||
A reconciliation of income tax expense at the federal statutory rate to income tax expense at the Company’s effective rate is as follows at June 30, 2014 and 2013: | |||||||||
2014 | 2013 | ||||||||
Computed tax at expected statutory rate | $ | (752,797 | ) | $ | (924,608 | ) | |||
State and local income taxes, net of federal benefits | (24,704 | ) | (8,533 | ) | |||||
Non-deductible expenses | 40,763 | 111,329 | |||||||
Non-US income taxed at different rates | 41,178 | 80,847 | |||||||
Other items | - | (558 | ) | ||||||
Income tax expense (benefit) | $ | (695,560 | ) | $ | (741,523 | ) | |||
The components of income tax expense (benefit) from continuing operations for the six months ended June 30, 2014 and 2013 consisted of the following: | |||||||||
2014 | 2013 | ||||||||
Current income tax expense: | |||||||||
Danish | $ | - | $ | - | |||||
Korea | - | - | |||||||
Federal | - | - | |||||||
State | - | - | |||||||
Current tax expense | $ | - | $ | - | |||||
Deferred tax expense (benefit) arising from: | |||||||||
Deferred Compensation | $ | - | $ | - | |||||
Net operating loss carryover | (757,272 | ) | (728,604 | ) | |||||
Allowance for doubtful accounts | - | - | |||||||
Reserve for obsolete inventory | 61,712 | (12,919 | ) | ||||||
Deferred tax expense | $ | (695,560 | ) | $ | (741,523 | ) | |||
Income tax benefit | $ | (695,560 | ) | $ | (741,523 | ) | |||
Deferred income tax expense / (benefit) results primarily from the reversal of temporary timing differences between tax and financial statement income. | |||||||||
The Company files Danish and U.S. federal and Minnesota state income tax returns. LiqTech International AS is generally no longer subject to tax examinations for years prior to 2009 for their Danish tax returns. LiqTech NA is generally no longer subject to tax examinations for years prior to 2009 for U.S. federal and U.S. states tax returns. |
Note_9_Loss_Per_Share
Note 9 - Loss Per Share | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Earnings Per Share [Text Block] | ' | ||||||||||||||||
NOTE 9 – LOSS PER SHARE | |||||||||||||||||
The following data shows the amounts used in computing earnings per share and the effect on income and the weighted average number of shares of potential dilutive common stock for the six months ended June 30, 2014 and 2013: | |||||||||||||||||
For the Three Months Ended | For the Six Months Ended | ||||||||||||||||
30-Jun | 30-Jun | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Income (Loss) attributable to LiqTech International Inc. | $ | (762,136 | ) | $ | (1,308,102 | ) | $ | (1,517,572 | ) | $ | (1,977,913 | ) | |||||
Weighted average number of common shares used in basic earnings per share | 27,212,500 | 24,359,852 | 27,212,500 | 24,236,362 | |||||||||||||
Effect of dilutive securities, stock options and warrants | - | - | - | - | |||||||||||||
Weighted average number of common shares and potentially dilutive securities | $ | 27,212,500 | $ | 24,359,852 | $ | 27,212,500 | $ | 24,236,362 | |||||||||
For the six months ended June 30, 2014, Parent had 3,064,130 options outstanding to purchase common stock of the Parent at $1.50 to $3.60 per share and Parent had 7,025,575 warrants outstanding to purchase common stock of the Parent at $1.50 to $4.06 per share, which were not included in the loss per share computation because their effect would be anti-dilutive. | |||||||||||||||||
For the six months ended June 30, 2013, Parent had 1,964,130 options outstanding to purchase common stock of the Parent at $1.50 to $3.60 per share and Parent had 6,625,575 warrants outstanding to purchase common stock of the Parent at $1.50 to $4.06 per share, which were not included in the loss per share computation because their effect would be anti-dilutive. |
Note_10_Stockholders_Equity
Note 10 - Stockholders' Equity | 6 Months Ended | |||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||||||||||||||
Stockholders' Equity Note Disclosure [Text Block] | ' | |||||||||||||||||||||||
NOTE 10 - STOCKHOLDERS' EQUITY | ||||||||||||||||||||||||
Common Stock -- Parent has 100,000,000 authorized shares of common stock, $0.001 par value. As of June 30, 2014 and December 31, 2013, respectively, there were 27,212,500 and 27,212,500 common shares issued and outstanding. | ||||||||||||||||||||||||
Voting -- Holders of Parent common stock are entitled to one vote for each share held of record on each matter submitted to a vote of stockholders, including the election of directors, and do not have any right to cumulate votes in the election of directors. | ||||||||||||||||||||||||
Dividends -- Subject to the rights and preferences of the holders of any series of preferred stock which may at the time be outstanding, holders of Parent common stock are entitled to receive ratably such dividends as our Board of Directors from time to time may declare out of funds legally available. | ||||||||||||||||||||||||
Liquidation Rights -- In the event of any liquidation, dissolution or winding-up of affairs of Parent, after payment of all of our debts and liabilities and subject to the rights and preferences of the holders of any outstanding shares of any series of our preferred stock, the holders of Parent common stock will be entitled to share ratably in the distribution of any of our remaining assets. | ||||||||||||||||||||||||
Other Matters -- Holders of Parent common stock have no conversion, preemptive or other subscription rights, and there are no redemption rights or sinking fund provisions with respect to the common stock. All of the issued and outstanding shares of common stock on the date of this report are validly issued, fully paid and non-assessable. | ||||||||||||||||||||||||
Preferred Stock -- Our Board of Directors has the authority to issue Parent preferred stock in one or more classes or series and to fix the designations, powers, preferences and rights, the qualifications, limitations or restrictions thereof, including dividend rights, dividend rates, conversion rights, voting rights, terms of redemption, redemption prices, liquidation preferences and the number of shares constituting any class or series, without further vote or action by the stockholders. The issuance of Parent preferred stock may have the effect of delaying, deferring or preventing a change in control of us without further action by the stockholders and may adversely affect the voting and other rights of the holders of common stock. | ||||||||||||||||||||||||
Common Stock Issuance | ||||||||||||||||||||||||
During the year 2013, the Company issued 100,000 shares of common stock valued at $320,000 for services rendered. | ||||||||||||||||||||||||
The Company issued an additional 300,000 shares of restricted stock valued at $960,000 for services provided and to be provided by the board of directors. The Company will recognized the non-cash compensation of the award over the requisite service period, of which 133,333 shares vested on December 31, 2013, 133,333 shares will vest on December 31, 2014 and 33,334 shares will vest on December 31, 2015. As of June 30, 2014, the Company has recorded deferred compensation of $320,001 and non-cash compensation expense of $213,333 relating to the awards for the period ended June 30, 2014. | ||||||||||||||||||||||||
On October 9, 2013 we announced that the warrant and option exercise raised $4,051,000 with holders exercising 2,701,000 warrants and stock options which included the exercise of 100,000 warrants by Aldo Petersen, Chairman of LiqTech, 25,000 stock options by Lasse Andreassen, founder and former board member of LiqTech and 50,000 stock options by Soren Degn, CFO of LiqTech. The board noted that the additional capital was an orderly solution to improving the Company's capital structure as well as enhancing the ability of LiqTech to list on an exchange. In addition, the new capital gave the Company additional flexibility to generate new orders and to sustain future growth. | ||||||||||||||||||||||||
On March 2, 2012, Parent completed a registered public offering of its common stock. As part of the closing, Parent issued 2,511,500 shares of common stock at a per share price of $3.25 and generated net proceeds of approximately $7.1 million, net of offering cost of $1,082,668. | ||||||||||||||||||||||||
Common Stock Purchase Warrants | ||||||||||||||||||||||||
A summary of the status of the Warrants outstanding at June 30, 2014 is presented below: | ||||||||||||||||||||||||
Warrants Outstanding | Warrants Exercisable | |||||||||||||||||||||||
Range of | Number | Weighted | Weighted | Number | Weighted | |||||||||||||||||||
Exercise | Outstanding | Average | Average | Exercisable | Average | |||||||||||||||||||
Prices | Remaining | Exercise | Exercise | |||||||||||||||||||||
Contractual | Price | Price | ||||||||||||||||||||||
Life (years) | ||||||||||||||||||||||||
$ | 1.5 | 3,874,000 | 2.5 | $ | 1.5 | 3,874,000 | $ | 1.5 | ||||||||||||||||
$ | 2.35 | 400,000 | 0.75 | $ | 2.35 | 400,000 | $ | 2.35 | ||||||||||||||||
$ | 2.7 | 2,626,000 | 2.5 | $ | 2.7 | 2,626,000 | $ | 2.7 | ||||||||||||||||
$ | 4.0625 | 125,575 | 2.68 | $ | 4.0625 | 125,575 | $ | 4.0625 | ||||||||||||||||
Total | 7,025,575 | 2.4 | $ | 2.04 | 7,025,575 | $ | 2.04 | |||||||||||||||||
At June 30, 2014 the Company had no non-vested warrants. We have recorded non-cash compensation expense of $59,400 for the period ended June 30, 2014 related to the warrants issued. | ||||||||||||||||||||||||
The exercise price of the warrants and the number of shares underlying the warrants are subject to adjustment for stock dividends, subdivisions of the outstanding shares of common stock and combinations of the outstanding shares of common stock. For so long as the warrants remain outstanding, we are required to keep reserved from our authorized and unissued shares of common stock a sufficient number of shares to provide for the issuance of the shares underlying the warrants. | ||||||||||||||||||||||||
On October 9, 2013, the Company issued 2,626,000 new warrants equal to the number of warrants exercised by the warrant holder having the same terms and conditions as the warrants exercised by the warrant holder, respectively, except each warrant issued has a strike price of $2.70 per share, the closing bid price of Parent’s common stock as quoted on the OTCBB on September 23, 2013. The net proceeds from the offering were allocated to the stock and warrants based on their relative fair values. The Company recorded the relative fair value of the warrants of $1,124,928 as stock offering costs. | ||||||||||||||||||||||||
Stock Options | ||||||||||||||||||||||||
In August 2011, Parent’s Board of Directors adopted a Stock Option Plan (the “Plan”). Under the terms and conditions of the Plan, the board is empowered to grant stock options to employees, officers, and directors of the Companies. At June 30, 2014, 3,064,130 options were granted and outstanding under the Plan. | ||||||||||||||||||||||||
The Company recognizes compensation costs for stock option awards to employees based on their grant-date fair value. The value of each stock option is estimated on the date of grant using the Black-Scholes option-pricing model. The weighted-average assumptions used to estimate the fair values of the stock options granted using the Black-Scholes option-pricing model are as follows: | ||||||||||||||||||||||||
LiqTech International, Inc. | ||||||||||||||||||||||||
Expected term (in years) | 3-4 | |||||||||||||||||||||||
Volatility | 40.74 | |||||||||||||||||||||||
Risk free interest rate | 0.67% | |||||||||||||||||||||||
Dividend yield | 0% | |||||||||||||||||||||||
The Company recognized stock based compensation expense related to the options of $119,891 and $265,266 for the six months ended June 30, 2014 and 2013, respectively. At June 30, 2014 the Company had approximately $698,553 of unrecognized compensation cost related to non-vested options expected to be recognized through March 31, 2017. | ||||||||||||||||||||||||
A summary of the status of the options outstanding under the Company’s stock option plans at June 30, 2014 is presented below: | ||||||||||||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||||||||||
Range of | Number | Weighted | Weighted | Number | Weighted | |||||||||||||||||||
Exercise | Outstanding | Average | Average | Exercisable | Average | |||||||||||||||||||
Prices | Remaining | Exercise | Exercise | |||||||||||||||||||||
Contractual | Price | Price | ||||||||||||||||||||||
Life (years) | ||||||||||||||||||||||||
$ | 1.5 | 377,500 | 0.65 | $ | 1.5 | 377,500 | $ | 1.5 | ||||||||||||||||
$ | 1.9 | 500,000 | 2.58 | $ | 1.9 | 166,667 | $ | 1.9 | ||||||||||||||||
$ | 2.35 | 600,000 | 2.75 | $ | 2.35 | 150,000 | $ | 2.35 | ||||||||||||||||
$ | 2.7 | 75,000 | 0.65 | $ | 2.7 | 75,000 | $ | 2.7 | ||||||||||||||||
$ | 3.00 - $3.60 | 1,511,630 | 0.66 | $ | 3.06 | 1,511,630 | $ | 3.04 | ||||||||||||||||
Total | 3,064,130 | 1.38 | $ | 2.53 | 2,280,830 | $ | 2.66 | |||||||||||||||||
A summary of the status of the options at June 30, 2014, and changes during the period is presented below: | ||||||||||||||||||||||||
30-Jun-14 | ||||||||||||||||||||||||
Shares | Average | Weighted | ||||||||||||||||||||||
Weighted | Remaining | Average | ||||||||||||||||||||||
Average | Life | Intrinsic | ||||||||||||||||||||||
Exercise | Value | |||||||||||||||||||||||
Price | ||||||||||||||||||||||||
Outstanding at beginning of period | 2,564,130 | $ | 2.65 | 1.64 | $ | 283,125 | ||||||||||||||||||
Granted | 500,000 | 1.9 | 2.58 | - | ||||||||||||||||||||
Exercised | - | - | - | - | ||||||||||||||||||||
Forfeited | - | - | - | - | ||||||||||||||||||||
Expired | - | - | - | - | ||||||||||||||||||||
Outstanding at end of period | 3,064,130 | $ | 2.53 | 1.38 | $ | 221,200 | ||||||||||||||||||
Vested and expected to vest | 3,064,130 | $ | 2.53 | 1.38 | $ | 221,200 | ||||||||||||||||||
Exercisable end of period | 2,280,830 | $ | 2.66 | 0.93 | $ | 194,533 | ||||||||||||||||||
At June 30, 2014 the Company had 783,300 non-vested options with a weighted average exercise price of $2.16 and with a weighted average grant date fair value of $0.986, resulting in unrecognized compensation expense of $495,015, which is expected to be expensed over a weighted-average period of 2.65 years. | ||||||||||||||||||||||||
The total intrinsic value of options at June 30, 2014 was $221,200. Intrinsic value is measured using the fair market value at the date of exercise (for shares exercised) or at June 30, 2014 (for outstanding options), less the applicable exercise price. |
Note_11_Significant_CustomersC
Note 11 - Significant Customers/Concentration | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Segment Reporting Disclosure [Text Block] | ' | ||||||||||||||||
NOTE 11 - SIGNIFICANT CUSTOMERS / CONCENTRATION | |||||||||||||||||
The Company had four significant customers that accounted for 20%, 9%, 6% and 6% of total sales at June 30, 2014. The Company had no customers that accounted for more than 10% of total sales at June 30, 2013. | |||||||||||||||||
The Company sells products throughout the world; sales by geographical region are as follows for the three and six months ended June 30, 2014 and 2013: | |||||||||||||||||
For the Three Months | For the Six Months | ||||||||||||||||
Ended June 30, | Ended June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
United States and Canada | $ | 769,265 | $ | 876,391 | $ | 1,775,470 | $ | 1,527,410 | |||||||||
Australia | 28,363 | 15,644 | 84,315 | 168,390 | |||||||||||||
South America | - | 4,760 | 16,845 | 25,380 | |||||||||||||
Asia | 188,312 | 332,930 | 494,933 | 1,151,482 | |||||||||||||
Europe | 2,987,747 | 1,576,196 | 4,799,626 | 3,332,407 | |||||||||||||
$ | 3,973,687 | $ | 2,805,921 | $ | 7,171,189 | $ | 6,205,069 | ||||||||||
The Company’s sales by product line are as follows for the three and six months ended June 31, 2014 and 2013: | |||||||||||||||||
For the Three Months | For the Six Months | ||||||||||||||||
Ended June 30, | Ended June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Ceramic diesel particulate | $ | 2,054,689 | $ | 1,539,971 | $ | 3,618,516 | $ | 3,472,276 | |||||||||
Liquid filters | 1,841,580 | 1,035,918 | 3,382,674 | 2,238,870 | |||||||||||||
Kiln furniture | 77,418 | 230,032 | 169,999 | 493,923 | |||||||||||||
$ | 3,973,687 | $ | 2,805,921 | $ | 7,171,189 | $ | 6,205,069 | ||||||||||
Note_12_Subsequent_Events
Note 12 - Subsequent Events | 6 Months Ended |
Jun. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events [Text Block] | ' |
NOTE 12 – SUBSEQUENT EVENTS | |
The Company’s management reviewed material events through August 12, 2014. | |
Stock Offering - On July 22, 2014, the Company, entered into a purchase agreement with Craig-Hallum Capital Group LLC as Underwriter, pursuant to which the Company agreed to sell, and the Underwriter agreed to purchase for resale to the public an Offering, subject to the terms and conditions expressed therein, 6,956,522 shares of common stock of the Company, par value $0.001 per share at a price to the public of $1.50 per share. The Offering closed on July 28, 2014. The Company granted the Underwriter a 30-day option to purchase an additional 1,043,478 shares which was exercised by Craig-Hallum Capital Group LLC on July 25, 2014. The Company also issued to the Underwriter, for a price of $50, a warrant to purchase 400,000 shares at an exercise price of $1.65 per share. The warrants are immediately exercisable and will remain exercisable for five years. | |
Acquisition -On the July 28, 2014, the Company, through its subsidiary, LiqTech Int. DK, completed the acquisition of all of the issued and outstanding capital stock (the “Provital Shares”) of Provital Solutions A/S, a Danish company (“Provital”) from Masu A/S, a Danish company (“MASU”). In consideration for the Provital Shares, MASU received cash consideration in the sum of DKK12,600,000, that is, approximately USD$2,300,000, and 4,044,782 shares of the Company’s common stock (the “Payment Shares”). One-third (1/3) of the Payment Shares shall be subject to a lock-up period of six (6) months. The remaining two-thirds (2/3) of the Payment Shares shall be held in escrow and one-third of the Payment Shares will be released from escrow contingent upon Provital, for the year ending December 31, 2014, achieving (i) gross revenues of not less than DKK65,000,000 and EBITDA of DKK6,500,000, or (ii) EBITDA of not less than DKK10,000,000 and gross revenues of not less than DKK50,000,000. Another one-third (1/3) of the Payment Shares will be released from escrow contingent upon Provital, for the year ending December 31, 2015, achieving (i) gross revenues of not less than DKK120,000,000 and EBITDA of DKK12,000,000, or (ii) EBITDA of not less than DKK16,000,000 and gross revenues of not less than DKK80,000,000. | |
The purchase agreement includes “catch up” provisions that provide that the Payment Shares placed in escrow will be released from escrow if Provital (1) for the years ending December 31, 2014 and December 31, 2015, achieves accumulated gross revenues (i) exceeding DKK185,000,000 and EBITDA of DKK18,500,000, or (ii) EBITDA of not less than DKK26,000,000 and gross revenues of not less than DKK130,000,000 or (2) for the year ending December 31, 2016, achieves gross revenues exceeding DKK105,000,000 and EBITDA of not less than DKK21,000,000. | |
Change in Officers and Appointment of Director - Effective July 29, 2014, the board of directors (the “Board”) of the Company, accepted the amicable resignation of Finn Helmer from his position as Chief Executive Officer of the Company. Effective July 30, 2014, the Board appointed Mr. Sune Mathiesen to serve as CEO and as a Board member of the Company. | |
CEO Employment Agreement - On July 29, 2014, LiqTech Int. DK and Mr. Mathiesen entered into an Employment Agreement pursuant to which Mr. Mathiesen shall also serve as Director and Chief Executive Officer of the Company. In consideration for Mr. Mathiesen’s services to the Company, Mr. Mathiesen shall receive an annual base salary initially set at DKK 1,500,000. Mr. Mathiesen’s Employment Agreement also provides that he shall receive a yearly bonus of five percent (5%) of the average gross profit for LiqTech Int. DK and Provital Solutions A/S for any sales (revenue) greater than or equal to DKK130,000,000 per year. The calculation in connection with the bonus is described in the Employment Agreement. In addition, Mr. Mathiesen shall be entitled to five weeks’ vacation, a Company mobile phone, broadband connection in his residence, a Company laptop and reimbursement of Company-related travel expenses. The Company may terminate Mr. Mathiesen’s employment upon not less than 12 months’ notice and Mr. Mathiesen may terminate with 12 months’ notice to the end of the month. The contract is non-cancellable from both parties until December 31, 2016. |
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Basis of Accounting, Policy [Policy Text Block] | ' | ||||||||
Business and Basis of Presentation | |||||||||
The consolidated financial statements include the accounts of LiqTech International, Inc. (“Parent”) and its subsidiaries. The terms "Company", “us", "we" and "our" as used in this report refer to Parent and its subsidiaries, which are set forth below. The Company engages in the development, design, production, marketing and sale of liquid filters, diesel particulate air filters and kiln furniture in United States, Canada, Europe, Asia and South America. Set forth below is a description of Parent and each of its subsidiaries: | |||||||||
LiqTech International, Inc., a Nevada corporation organized in July 2004, formerly known as Blue Moose Media, Inc. | |||||||||
LiqTech USA, a Delaware corporation and a wholly-owned subsidiary of Parent formed in May 2011. | |||||||||
LiqTech International AS, a Danish corporation, incorporated on January 15, 2000 (“LiqTech Int. DK”), a 100% owned subsidiary of LiqTech USA, engages in development, design, application, marketing and sales of membranes on ceramic diesel particulate and liquid filters and catalytic converters in Europe, Asia and South America. | |||||||||
LiqTech NA, Inc. (“LiqTech NA”), incorporated in Delaware on July 1, 2005, a 100% owned subsidiary of LiqTech USA as of December 31, 2013, prior to December 31, 2013 LiqTech NA, Inc. was owned 90% by LiqTech International AS and 10% by LiqTech USA, LiqTech NA, Inc. engages in the production, marketing and sale of ceramic diesel particulate and liquid filters and kiln furniture in United States and Canada. | |||||||||
LiqTech Asia (“LiqTech Asia”) a 60% owned subsidiary of LiqTech Int. DK, incorporated in South Korea on July 20, 2006, is currently a dormant subsidiary. | |||||||||
LiqTech Germany (“LiqTech Germany”) a 100% owned subsidiary of LiqTech Int. DK, incorporated in Germany on December 9, 2011, engages in marketing and sale of liquid filters in Germany. | |||||||||
LiqTech PTE Ltd, (“LiqTech Sing”) a 95% owned subsidiary of LiqTech Int. DK, incorporated in Singapore on January 19, 2012, engages in marketing and sale of liquid filters in Singapore and other countries in the area. | |||||||||
The accompanying financial statements are unaudited. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows at June 30, 2014 and 2013 and for the periods then ended have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Company’s December 31, 2013 audited financial statements. The results of operations for the periods ended June 30, 2014 and 2013 are not necessarily indicative of the operating results for the full year. | |||||||||
Consolidation, Policy [Policy Text Block] | ' | ||||||||
Consolidation --The consolidated financial statements include the accounts and operations of the Company. The non-controlling interests in the net assets of the subsidiaries are recorded in equity. The non-controlling interests of the results of operations of the subsidiaries are included in the results of operations and recorded as the non-controlling interest in subsidiaries. All material inter-company transactions and accounts have been eliminated in the consolidation. | |||||||||
Foreign Currency Transactions and Translations Policy [Policy Text Block] | ' | ||||||||
Functional Currency / Foreign currency translation -- The functional currency of LiqTech International, Inc., LiqTech USA, Inc. and LiqTech NA is the U.S. Dollar. The Functional Currency of LiqTech Int DK is the Danish Krone (“DKK”), the functional currency of LiqTech Germany is the Euro and the functional currency of LiqTech Singapore is the Singapore Dollar, the functional Currency of LiqTech Asia is South Korean Won. The Company’s reporting currency is U.S. Dollar for the purpose of these financial statements. The foreign subsidiaries balance sheet accounts are translated into U.S. Dollars at the period-end exchange rates and all revenue and expenses are translated into U.S. Dollars at the average exchange rates prevailing during the periods ended June 30, 2014 and 2013. Translation gains and losses are deferred and accumulated as a component of other comprehensive income in stockholders’ equity. Transaction gains and losses that arose from exchange rate fluctuations from transactions denominated in a currency other than the functional currency are included in the statement of operations as incurred. | |||||||||
Cash and Cash Equivalents, Policy [Policy Text Block] | ' | ||||||||
Cash and Cash Equivalents -- The Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. The Company had no balances held in financial institution in the United States in excess of federally insured amounts at June 30, 2014 and December 31, 2013. | |||||||||
Loans and Leases Receivable, Allowance for Loan Losses Policy [Policy Text Block] | ' | ||||||||
Accounts Receivable -- Accounts receivables consist of trade receivables arising in the normal course of business. The Company establishes an allowance for doubtful accounts which reflects the Company’s best estimate of probable losses inherent in the accounts receivable balance. The Company determines the allowance based on known troubled accounts, historical experience, and other currently available evidence. | |||||||||
The roll forward of the allowance for doubtful accounts for the six months ended June 30, 2014 and the year ended December 31, 2013 is as follows: | |||||||||
2014 | 2013 | ||||||||
Allowance for doubtful accounts at the beginning of the period | $ | 608,356 | $ | 1,243,500 | |||||
Bad debt expense | 107,111 | 72,548 | |||||||
Amount of receivables written off | - | (770,738 | ) | ||||||
Effect of currency translation | (31,101 | ) | 63,046 | ||||||
Allowance for doubtful accounts at the end of the period | $ | 684,366 | $ | 608,356 | |||||
Inventory, Policy [Policy Text Block] | ' | ||||||||
Inventory -- Inventory is carried at the lower of cost or market, as determined on the first-in, first-out method. | |||||||||
Property, Plant and Equipment, Policy [Policy Text Block] | ' | ||||||||
Property and Equipment -- Property and equipment are stated at cost. Expenditures for major renewals and betterments that extend the useful lives of property and equipment are capitalized, upon being placed in service. Expenditures for maintenance and repairs are charged to expense as incurred. Depreciation is computed for financial statement purposes on a straight-line basis over the estimated useful lives of the assets which range from three to ten years (See Note 3). | |||||||||
Investment, Policy [Policy Text Block] | ' | ||||||||
Long-Term Investments -- Investments in non-consolidated companies are included in long-term investments in the consolidated balance sheet and are accounted for under the cost method and equity method. For these non-quoted investments, we regularly review the assumptions underlying the operating performance and cash flow forecasts based on information requested from these privately held companies. Generally, this information may be more limited, may not be as timely as and may be less accurate than information available from publicly traded companies. Assessing each investment's carrying value requires significant judgment by management. If it is determined that there is an-other-than-temporary decline in the fair value of a non-public equity security, we write-down the investment to its fair value and record the related write-down as an investment loss in the consolidated statement of operations. | |||||||||
Goodwill and Intangible Assets, Policy [Policy Text Block] | ' | ||||||||
Intangible Assets -- Definite life intangible assets include patents. The Company accounts for definite life intangible assets in accordance with Financial Accounting Standards Board, (“FASB”) Accounting Standards Codification, (“ASC”) Topic 350, “Goodwill and Other Intangible Assets” and amortized the patents on a straight line basis over the estimated useful life of two to ten years. | |||||||||
Revenue Recognition, Policy [Policy Text Block] | ' | ||||||||
Revenue Recognition and Sales Incentives -- The Company accounts for revenue recognition in accordance with the Securities and Exchange Commission Staff Accounting Bulletin No. 101, “Revenue Recognition in Financial Statements” (SAB 101), FASB ASC 605 Revenue Recognition. The Company recognizes revenue when rights and risk of ownership have passed to the customer, when there is persuasive evidence of an arrangement, product has been shipped or delivered to the customer, the price and terms are finalized, and collections of resulting receivable is reasonably assured. Products are primarily shipped FOB shipping point at which time title passes to the customer. In some instances the Company uses common carriers for the delivery of products. In these arrangements, sales are recognized upon delivery to the customer. The Company's revenue arrangements with its customers often include early payment discounts and such sales incentives are recorded against sales. | |||||||||
The Company has received various grants from government entities for development and use of silicon carbide membranes in various water filtration and treatment applications. Revenues from grants are recognized on the percentage-of-completion method, measured by the percentage of project costs incurred to date to estimated total project costs for each grant multiplied by the grant income on a project by project basis. This method is used because management considers costs incurred to be the best available measure of progress on contracts in process. | |||||||||
Project costs of the grants include all direct material and labor costs and those indirect costs related to the project. Project costs are capitalized and accreted into cost of sales based on the percentage of the project completed. Should a loss be estimated on an incomplete project it would be recorded in the period in which such a loss is determined. Changes in estimated profitability of a project are recognized in the period in which the revisions are determined. The aggregate of costs incurred and income recognized on incomplete projects are recorded as costs in excess of billings and are shown as a current asset. The aggregate of billings in excess of related costs incurred and income recognized on projects is shown as a current liability. | |||||||||
In Denmark, Value Added Tax (“VAT”) of 25% of the invoice amount is collected in respect of the sales of goods on behalf of tax authorities. The VAT collected is not revenue of the Company; instead, the amount is recorded as a liability on the balance sheet until such VAT is paid to the authorities. | |||||||||
Advertising Costs, Policy [Policy Text Block] | ' | ||||||||
Advertising Cost -- Cost incurred in connection with advertising of the Company’s products is expensed as incurred. Such costs amounted to $12,486 and $20,739, for the six months ended June 30, 2014 and 2013, respectively. | |||||||||
Research, Development, and Computer Software, Policy [Policy Text Block] | ' | ||||||||
Research and Development Cost -- The Company expenses research and development costs for the development of new products as incurred. Included in operating expense for the six months ended June 30, 2014 and 2013 were $140,419, and $258,239, respectively, of research and development costs. | |||||||||
Income Tax, Policy [Policy Text Block] | ' | ||||||||
Income Taxes -- The Company accounts for income taxes in accordance with FASB ASC Topic 740 Accounting for Income Taxes. This statement requires an asset and liability approach for accounting for income taxes. | |||||||||
Earnings Per Share, Policy [Policy Text Block] | ' | ||||||||
Loss Per Share -- The Company calculates earnings (loss) per share in accordance with FASB ASC 260 Earnings Per Share. Basic earnings per common share (EPS) are based on the weighted average number of common shares outstanding during each period. Diluted earnings per common share are based on shares outstanding (computed as under basic EPS) and potentially dilutive common shares. Potential common shares included in the diluted earnings per share calculation include in-the-money stock options that have been granted but have not been exercised. | |||||||||
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | ' | ||||||||
Stock Options -- The Company have granted stock options to certain key employees. See Note 13. During the years presented in the accompanying consolidated financial statements, the Company has granted options. The Company accounts for options in accordance with the provisions of FASB ASC Topic 718, Compensation – Stock Compensation. Non-cash compensation costs of $392,623 and $774,888 have been recognized for the vesting of options granted to employees with an associated recognized tax benefit of $0 for the six months ended June 30, 2014 and 2013, respectively. | |||||||||
Fair Value Measurement, Policy [Policy Text Block] | ' | ||||||||
Fair Value of Financial Instruments -- The Company accounts for fair value measurements for financial assets and financial liabilities in accordance with FASB ASC Topic 820. The authoritative guidance, which, among other things, defines fair value, establishes a consistent framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring or nonrecurring basis. Fair value is defined as the exit price, representing the amount that would either be received to sell an asset or be paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: | |||||||||
● | Level 1. Observable inputs such as quoted prices in active markets for identical assets or liabilities; | ||||||||
● | Level 2. Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and | ||||||||
● | Level 3. Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. | ||||||||
Unless otherwise disclosed, the fair value of the Company’s financial instruments including cash, accounts receivable, prepaid expenses, investments, accounts payable, accrued expenses, capital lease obligations and notes payable approximates their recorded values due to their short-term maturities. | |||||||||
Use of Estimates, Policy [Policy Text Block] | ' | ||||||||
Accounting Estimates -- The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimated. | |||||||||
New Accounting Pronouncements, Policy [Policy Text Block] | ' | ||||||||
Recent Accounting Pronouncements -- In May 2014, the Financial Accounting Standards Board issued a new standard to achieve a consistent application of revenue recognition within the U.S., resulting in a single revenue model to be applied by reporting companies under U.S. generally accepted accounting principles. Under the new model, recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the new standard requires that reporting companies disclose the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The new standard is effective beginning in the first quarter of 2017; early adoption is prohibited. The new standard is required to be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying it recognized at the date of initial application. We have not yet selected a transition method nor have we determined the impact of the new standard on our consolidated condensed financial statements. |
Note_1_Summary_of_Significant_1
Note 1 - Summary of Significant Accounting Policies (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Allowance for Credit Losses on Financing Receivables [Table Text Block] | ' | ||||||||
2014 | 2013 | ||||||||
Allowance for doubtful accounts at the beginning of the period | $ | 608,356 | $ | 1,243,500 | |||||
Bad debt expense | 107,111 | 72,548 | |||||||
Amount of receivables written off | - | (770,738 | ) | ||||||
Effect of currency translation | (31,101 | ) | 63,046 | ||||||
Allowance for doubtful accounts at the end of the period | $ | 684,366 | $ | 608,356 |
Note_2_Inventory_Tables
Note 2 - Inventory (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Schedule of Inventory, Current [Table Text Block] | ' | ||||||||
2014 | 2013 | ||||||||
Furnace parts and supplies | $ | 1,193,192 | $ | 1,025,225 | |||||
Raw materials | 671,271 | 631,524 | |||||||
Work in process | 1,717,590 | 1,799,888 | |||||||
Finished goods | 1,111,233 | 1,062,865 | |||||||
Reserve for obsolescence | (82,038 | ) | (260,896 | ) | |||||
Net Inventory | $ | 4,611,248 | $ | 4,258,606 |
Note_3_Property_and_Equipment_
Note 3 - Property and Equipment (Tables) | 6 Months Ended | ||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||||||||||||||
Property, Plant and Equipment [Table Text Block] | ' | ||||||||||||||||||||
Useful Life | 2014 | 2013 | |||||||||||||||||||
Production equipment | 10-Mar | $ | 11,552,124 | $ | 11,542,740 | ||||||||||||||||
Lab equipment | 10-Mar | 179,896 | 181,432 | ||||||||||||||||||
Computer equipment | 5-Mar | 276,513 | 276,013 | ||||||||||||||||||
Vehicles | 3 | 37,898 | 38,221 | ||||||||||||||||||
Furniture and fixture | 5 | 72,736 | 68,169 | ||||||||||||||||||
Leasehold improvements | 10 | 1,113,238 | 1,059,605 | ||||||||||||||||||
13,232,405 | 13,166,180 | ||||||||||||||||||||
Less Accumulated Depreciation | (8,031,337 | ) | (7,336,776 | ) | |||||||||||||||||
Net Property and Equipment | $ | 5,201,068 | $ | 5,829,404 |
Note_4_Investments_Tables
Note 4 - Investments (Tables) | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||
Fair Value, Instruments Classified in Shareholders' Equity Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | ' | ||||||||||||
As of June 30, 2014 | Level 1 | Level 2 | Level 3 | ||||||||||
Investments | - | - | 6,824 | ||||||||||
Total | - | - | 6,824 | ||||||||||
As of December 31, 2013 | Level 1 | Level 2 | Level 3 | ||||||||||
Investments | - | - | 6,882 | ||||||||||
Total | - | - | 6,882 |
Note_5_DefiniteLife_Intangible1
Note 5 - Definite-Life Intangible Assets (Tables) | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Disclosure Text Block [Abstract] | ' | ||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | ' | ||||
Year ending December 31, | Amortization | ||||
Expenses | |||||
2014 | $ | 2,871 | |||
2015 | 5,742 | ||||
2016 | 5,742 | ||||
2017 | 3,486 | ||||
2018 | 2,933 | ||||
Thereafter | 849 | ||||
Total Amortization Expenses | $ | 21,623 |
Note_6_Leases_Tables
Note 6 - Leases (Tables) | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Leases [Abstract] | ' | ||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | ' | ||||
Year ending December | Operating Lease Payments | ||||
2014 | $ | 317,256 | |||
2015 | 651,924 | ||||
2016 | 668,935 | ||||
2017 | 494,207 | ||||
2018 | 312,032 | ||||
Thereafter | - | ||||
Total Minimum Lease Payments | $ | 2,444,354 | |||
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] | ' | ||||
Capital Lease | |||||
Payments | |||||
2014 | $ | 130,767 | |||
2015 | 224,837 | ||||
2016 | 217,651 | ||||
2017 | 139,755 | ||||
2018 | - | ||||
Thereafter | - | ||||
Total minimum lease payments | 713,010 | ||||
Less amount representing interest | (62,747 | ) | |||
Present value of minimum lease payments | 650,263 | ||||
Less current portion | (192,086 | ) | |||
Long-term lease payments | $ | 458,177 |
Note_8_Income_Taxes_Tables
Note 8 - Income Taxes (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | ' | ||||||||
2014 | 2013 | ||||||||
Vacation accrual | $ | 4,161 | $ | 4,161 | |||||
Allowance for doubtful Accounts | 13,955 | 13,955 | |||||||
Reserve for obsolete inventory | 23,570 | 86,027 | |||||||
Net current tax assets | $ | 41,686 | $ | 104,143 | |||||
Business tax credit carryover | 20,184 | 20,184 | |||||||
Deferred Compensation | 202,309 | 202,309 | |||||||
Net operating loss carryover | 3,132,619 | 2,367,568 | |||||||
Excess of book over tax depreciation | (726,555 | ) | (726,712 | ) | |||||
Long term tax asset | $ | 2,628,557 | $ | 1,863,349 | |||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | ' | ||||||||
2014 | 2013 | ||||||||
Computed tax at expected statutory rate | $ | (752,797 | ) | $ | (924,608 | ) | |||
State and local income taxes, net of federal benefits | (24,704 | ) | (8,533 | ) | |||||
Non-deductible expenses | 40,763 | 111,329 | |||||||
Non-US income taxed at different rates | 41,178 | 80,847 | |||||||
Other items | - | (558 | ) | ||||||
Income tax expense (benefit) | $ | (695,560 | ) | $ | (741,523 | ) | |||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | ' | ||||||||
2014 | 2013 | ||||||||
Current income tax expense: | |||||||||
Danish | $ | - | $ | - | |||||
Korea | - | - | |||||||
Federal | - | - | |||||||
State | - | - | |||||||
Current tax expense | $ | - | $ | - | |||||
Deferred tax expense (benefit) arising from: | |||||||||
Deferred Compensation | $ | - | $ | - | |||||
Net operating loss carryover | (757,272 | ) | (728,604 | ) | |||||
Allowance for doubtful accounts | - | - | |||||||
Reserve for obsolete inventory | 61,712 | (12,919 | ) | ||||||
Deferred tax expense | $ | (695,560 | ) | $ | (741,523 | ) | |||
Income tax benefit | $ | (695,560 | ) | $ | (741,523 | ) |
Note_9_Loss_Per_Share_Tables
Note 9 - Loss Per Share (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Schedule of Weighted Average Number of Shares [Table Text Block] | ' | ||||||||||||||||
For the Three Months Ended | For the Six Months Ended | ||||||||||||||||
30-Jun | 30-Jun | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Income (Loss) attributable to LiqTech International Inc. | $ | (762,136 | ) | $ | (1,308,102 | ) | $ | (1,517,572 | ) | $ | (1,977,913 | ) | |||||
Weighted average number of common shares used in basic earnings per share | 27,212,500 | 24,359,852 | 27,212,500 | 24,236,362 | |||||||||||||
Effect of dilutive securities, stock options and warrants | - | - | - | - | |||||||||||||
Weighted average number of common shares and potentially dilutive securities | $ | 27,212,500 | $ | 24,359,852 | $ | 27,212,500 | $ | 24,236,362 |
Note_10_Stockholders_Equity_Ta
Note 10 - Stockholders' Equity (Tables) | 6 Months Ended | |||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||||||||||||||
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block] | ' | |||||||||||||||||||||||
Warrants Outstanding | Warrants Exercisable | |||||||||||||||||||||||
Range of | Number | Weighted | Weighted | Number | Weighted | |||||||||||||||||||
Exercise | Outstanding | Average | Average | Exercisable | Average | |||||||||||||||||||
Prices | Remaining | Exercise | Exercise | |||||||||||||||||||||
Contractual | Price | Price | ||||||||||||||||||||||
Life (years) | ||||||||||||||||||||||||
$ | 1.5 | 3,874,000 | 2.5 | $ | 1.5 | 3,874,000 | $ | 1.5 | ||||||||||||||||
$ | 2.35 | 400,000 | 0.75 | $ | 2.35 | 400,000 | $ | 2.35 | ||||||||||||||||
$ | 2.7 | 2,626,000 | 2.5 | $ | 2.7 | 2,626,000 | $ | 2.7 | ||||||||||||||||
$ | 4.0625 | 125,575 | 2.68 | $ | 4.0625 | 125,575 | $ | 4.0625 | ||||||||||||||||
Total | 7,025,575 | 2.4 | $ | 2.04 | 7,025,575 | $ | 2.04 | |||||||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | ' | |||||||||||||||||||||||
LiqTech International, Inc. | ||||||||||||||||||||||||
Expected term (in years) | 3-4 | |||||||||||||||||||||||
Volatility | 40.74 | |||||||||||||||||||||||
Risk free interest rate | 0.67% | |||||||||||||||||||||||
Dividend yield | 0% | |||||||||||||||||||||||
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | ' | |||||||||||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||||||||||
Range of | Number | Weighted | Weighted | Number | Weighted | |||||||||||||||||||
Exercise | Outstanding | Average | Average | Exercisable | Average | |||||||||||||||||||
Prices | Remaining | Exercise | Exercise | |||||||||||||||||||||
Contractual | Price | Price | ||||||||||||||||||||||
Life (years) | ||||||||||||||||||||||||
$ | 1.5 | 377,500 | 0.65 | $ | 1.5 | 377,500 | $ | 1.5 | ||||||||||||||||
$ | 1.9 | 500,000 | 2.58 | $ | 1.9 | 166,667 | $ | 1.9 | ||||||||||||||||
$ | 2.35 | 600,000 | 2.75 | $ | 2.35 | 150,000 | $ | 2.35 | ||||||||||||||||
$ | 2.7 | 75,000 | 0.65 | $ | 2.7 | 75,000 | $ | 2.7 | ||||||||||||||||
$ | 3.00 - $3.60 | 1,511,630 | 0.66 | $ | 3.06 | 1,511,630 | $ | 3.04 | ||||||||||||||||
Total | 3,064,130 | 1.38 | $ | 2.53 | 2,280,830 | $ | 2.66 | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable [Table Text Block] | ' | |||||||||||||||||||||||
30-Jun-14 | ||||||||||||||||||||||||
Shares | Average | Weighted | ||||||||||||||||||||||
Weighted | Remaining | Average | ||||||||||||||||||||||
Average | Life | Intrinsic | ||||||||||||||||||||||
Exercise | Value | |||||||||||||||||||||||
Price | ||||||||||||||||||||||||
Outstanding at beginning of period | 2,564,130 | $ | 2.65 | 1.64 | $ | 283,125 | ||||||||||||||||||
Granted | 500,000 | 1.9 | 2.58 | - | ||||||||||||||||||||
Exercised | - | - | - | - | ||||||||||||||||||||
Forfeited | - | - | - | - | ||||||||||||||||||||
Expired | - | - | - | - | ||||||||||||||||||||
Outstanding at end of period | 3,064,130 | $ | 2.53 | 1.38 | $ | 221,200 | ||||||||||||||||||
Vested and expected to vest | 3,064,130 | $ | 2.53 | 1.38 | $ | 221,200 | ||||||||||||||||||
Exercisable end of period | 2,280,830 | $ | 2.66 | 0.93 | $ | 194,533 |
Note_11_Significant_CustomersC1
Note 11 - Significant Customers/Concentration (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | ' | ||||||||||||||||
For the Three Months | For the Six Months | ||||||||||||||||
Ended June 30, | Ended June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
United States and Canada | $ | 769,265 | $ | 876,391 | $ | 1,775,470 | $ | 1,527,410 | |||||||||
Australia | 28,363 | 15,644 | 84,315 | 168,390 | |||||||||||||
South America | - | 4,760 | 16,845 | 25,380 | |||||||||||||
Asia | 188,312 | 332,930 | 494,933 | 1,151,482 | |||||||||||||
Europe | 2,987,747 | 1,576,196 | 4,799,626 | 3,332,407 | |||||||||||||
$ | 3,973,687 | $ | 2,805,921 | $ | 7,171,189 | $ | 6,205,069 | ||||||||||
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | ' | ||||||||||||||||
For the Three Months | For the Six Months | ||||||||||||||||
Ended June 30, | Ended June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Ceramic diesel particulate | $ | 2,054,689 | $ | 1,539,971 | $ | 3,618,516 | $ | 3,472,276 | |||||||||
Liquid filters | 1,841,580 | 1,035,918 | 3,382,674 | 2,238,870 | |||||||||||||
Kiln furniture | 77,418 | 230,032 | 169,999 | 493,923 | |||||||||||||
$ | 3,973,687 | $ | 2,805,921 | $ | 7,171,189 | $ | 6,205,069 |
Note_1_Summary_of_Significant_2
Note 1 - Summary of Significant Accounting Policies (Details) (USD $) | 3 Months Ended | 6 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | |||||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | |
LiqTech International DK [Member] | LiqTech NA [Member] | LiqTech NA [Member] | LiqTech Asia [Member] | LiqTech Germany [Member] | LiqTech PTE [Member] | Employee Stock Option [Member] | Employee Stock Option [Member] | DENMARK | Minimum [Member] | Maximum [Member] | ||||||
Note 1 - Summary of Significant Accounting Policies (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | ' | ' | ' | ' | ' | 100.00% | 100.00% | 90.00% | 60.00% | 100.00% | 95.00% | ' | ' | ' | ' | ' |
Percentage of Subsidiary Owned by Subsidiary of Parent | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Cash, Uninsured Amount | $0 | ' | $0 | ' | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, Plant and Equipment, Useful Life | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | '10 years |
Finite-Lived Intangible Asset, Useful Life | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | '10 years |
Value Added Tax of Invoice, Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | ' | ' |
Advertising Expense | ' | ' | 12,486 | 20,739 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Research and Development Expense | 39,833 | 111,254 | 140,419 | 258,239 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | 172,205 | 743,519 | 392,623 | 774,888 | ' | ' | ' | ' | ' | ' | ' | 392,623 | 774,888 | ' | ' | ' |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | ' | ' | ' |
Note_1_Summary_of_Significant_3
Note 1 - Summary of Significant Accounting Policies (Details) - Allowance for Doubtful Accounts, Roll Forward (USD $) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
Allowance for Doubtful Accounts, Roll Forward [Abstract] | ' | ' | ' |
Allowance for doubtful accounts at the beginning of the period | $608,356 | $1,243,500 | $1,243,500 |
Bad debt expense | 107,111 | 47,366 | 72,548 |
Amount of receivables written off | ' | ' | -770,738 |
Effect of currency translation | -31,101 | ' | 63,046 |
Allowance for doubtful accounts at the end of the period | $684,366 | ' | $608,356 |
Note_2_Inventory_Details_Summa
Note 2 - Inventory (Details) - Summary of Inventory (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Summary of Inventory [Abstract] | ' | ' |
Furnace parts and supplies | $1,193,192 | $1,025,225 |
Raw materials | 671,271 | 631,524 |
Work in process | 1,717,590 | 1,799,888 |
Finished goods | 1,111,233 | 1,062,865 |
Reserve for obsolescence | -82,038 | -260,896 |
Net Inventory | $4,611,248 | $4,258,606 |
Note_3_Property_and_Equipment_1
Note 3 - Property and Equipment (Details) (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Property, Plant and Equipment [Abstract] | ' | ' |
Depreciation | $870,152 | $773,447 |
Note_3_Property_and_Equipment_2
Note 3 - Property and Equipment (Details) - Property and Equipment (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment | $13,232,405 | $13,166,180 |
Less Accumulated Depreciation | -8,031,337 | -7,336,776 |
Net Property and Equipment | 5,201,068 | 5,829,404 |
Production Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment | 11,552,124 | 11,542,740 |
Production Equipment [Member] | Minimum [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Useful life | '3 years | ' |
Production Equipment [Member] | Maximum [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Useful life | '10 years | ' |
Lab Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment | 179,896 | 181,432 |
Lab Equipment [Member] | Minimum [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Useful life | '3 years | ' |
Lab Equipment [Member] | Maximum [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Useful life | '10 years | ' |
Computer Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment | 276,513 | 276,013 |
Computer Equipment [Member] | Minimum [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Useful life | '3 years | ' |
Computer Equipment [Member] | Maximum [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Useful life | '5 years | ' |
Vehicles [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Useful life | '3 years | ' |
Property and equipment | 37,898 | 38,221 |
Furniture and Fixtures [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Useful life | '5 years | ' |
Property and equipment | 72,736 | 68,169 |
Leasehold Improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Useful life | '10 years | ' |
Property and equipment | $1,113,238 | $1,059,605 |
Minimum [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Useful life | '3 years | ' |
Maximum [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Useful life | '10 years | ' |
Note_4_Investments_Details
Note 4 - Investments (Details) (LEA Technology [Member], USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
LEA Technology [Member] | ' | ' |
Note 4 - Investments (Details) [Line Items] | ' | ' |
Investments | $6,824 | $6,882 |
Note_4_Investments_Details_Sum
Note 4 - Investments (Details) - Summary of Level 1-3 Financial Assets and Liabilities (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Fair Value, Inputs, Level 1 [Member] | ' | ' |
Fair Value, Instruments Classified in Shareholders' Equity Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Investments | $0 | $0 |
Total | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ' | ' |
Fair Value, Instruments Classified in Shareholders' Equity Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Investments | 0 | 0 |
Total | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ' | ' |
Fair Value, Instruments Classified in Shareholders' Equity Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Investments | 6,824 | 6,882 |
Total | $6,824 | $6,882 |
Note_5_DefiniteLife_Intangible2
Note 5 - Definite-Life Intangible Assets (Details) (USD $) | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
Note 5 - Definite-Life Intangible Assets (Details) [Line Items] | ' | ' | ' |
Intangible Assets, Net (Excluding Goodwill) | $21,623 | ' | $24,687 |
Patents [Member] | ' | ' | ' |
Note 5 - Definite-Life Intangible Assets (Details) [Line Items] | ' | ' | ' |
Intangible Assets, Net (Excluding Goodwill) | 21,623 | ' | 24,687 |
Amortization of Intangible Assets | $3,064 | $2,954 | ' |
Patents [Member] | Minimum [Member] | ' | ' | ' |
Note 5 - Definite-Life Intangible Assets (Details) [Line Items] | ' | ' | ' |
Finite-Lived Intangible Asset, Useful Life | '2 years | ' | ' |
Patents [Member] | Maximum [Member] | ' | ' | ' |
Note 5 - Definite-Life Intangible Assets (Details) [Line Items] | ' | ' | ' |
Finite-Lived Intangible Asset, Useful Life | '10 years | ' | ' |
Minimum [Member] | ' | ' | ' |
Note 5 - Definite-Life Intangible Assets (Details) [Line Items] | ' | ' | ' |
Finite-Lived Intangible Asset, Useful Life | '2 years | ' | ' |
Maximum [Member] | ' | ' | ' |
Note 5 - Definite-Life Intangible Assets (Details) [Line Items] | ' | ' | ' |
Finite-Lived Intangible Asset, Useful Life | '10 years | ' | ' |
Note_5_DefiniteLife_Intangible3
Note 5 - Definite-Life Intangible Assets (Details) - Expected Future Amortization Expense (USD $) | Jun. 30, 2014 |
Expected Future Amortization Expense [Abstract] | ' |
2014 | $2,871 |
2015 | 5,742 |
2016 | 5,742 |
2017 | 3,486 |
2018 | 2,933 |
Thereafter | 849 |
Total Amortization Expenses | $21,623 |
Note_6_Leases_Details
Note 6 - Leases (Details) (USD $) | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
Note 6 - Leases (Details) [Line Items] | ' | ' | ' |
Operating Leases, Rent Expense | $355,462 | $382,766 | ' |
Capital Leased Assets, Gross | 1,586,711 | ' | 1,600,254 |
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation | 1,005,748 | ' | 907,728 |
Depreciation | 870,152 | 773,447 | ' |
Interest Expense, Lessee, Assets under Capital Lease | 20,968 | 26,307 | ' |
Assets Held under Capital Leases [Member] | ' | ' | ' |
Note 6 - Leases (Details) [Line Items] | ' | ' | ' |
Depreciation | 105,977 | 107,003 | ' |
Capital Lease Obligations [Member] | Capital Lease 1 [Member] | ' | ' | ' |
Note 6 - Leases (Details) [Line Items] | ' | ' | ' |
Debt Instrument, Periodic Payment | 12,040 | ' | ' |
Capital Lease Obligations [Member] | Capital Lease 2 [Member] | ' | ' | ' |
Note 6 - Leases (Details) [Line Items] | ' | ' | ' |
Debt Instrument, Periodic Payment | 4,666 | ' | ' |
Capital Lease Obligations [Member] | Capital Lease 3 [Member] | ' | ' | ' |
Note 6 - Leases (Details) [Line Items] | ' | ' | ' |
Debt Instrument, Periodic Payment | 3,021 | ' | ' |
Capital Lease Obligations [Member] | Capital Lease 4 [Member] | ' | ' | ' |
Note 6 - Leases (Details) [Line Items] | ' | ' | ' |
Debt Instrument, Periodic Payment | $2,152 | ' | ' |
Note_6_Leases_Details_Future_M
Note 6 - Leases (Details) - Future Minimum Lease Payments for Non-Cancelable Operating Leases (USD $) | Jun. 30, 2014 |
Future Minimum Lease Payments for Non-Cancelable Operating Leases [Abstract] | ' |
2014 | $317,256 |
2015 | 651,924 |
2016 | 668,935 |
2017 | 494,207 |
2018 | 312,032 |
Total Minimum Lease Payments | $2,444,354 |
Note_6_Leases_Details_Future_M1
Note 6 - Leases (Details) - Future Minimum Capital Lease Payments (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Future Minimum Capital Lease Payments [Abstract] | ' | ' |
2014 | $130,767 | ' |
2015 | 224,837 | ' |
2016 | 217,651 | ' |
2017 | 139,755 | ' |
Total minimum lease payments | 713,010 | ' |
Less amount representing interest | -62,747 | ' |
Present value of minimum lease payments | 650,263 | ' |
Less current portion | -192,086 | -208,419 |
Long-term lease payments | $458,177 | $554,360 |
Note_7_Agreements_and_Commitme1
Note 7 - Agreements and Commitments (Details) (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Disclosure Text Block Supplement [Abstract] | ' | ' |
Defined Contribution Plan, Cost Recognized | $7,425 | $7,463 |
Note_8_Income_Taxes_Details
Note 8 - Income Taxes (Details) (USD $) | Jun. 30, 2014 |
Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | ' |
Note 8 - Income Taxes (Details) [Line Items] | ' |
Operating Loss Carryforwards | $6,481,000 |
Foreign Tax Authority [Member] | Danish Ministry of Taxation [Member] | ' |
Note 8 - Income Taxes (Details) [Line Items] | ' |
Operating Loss Carryforwards | 3,020,000 |
Foreign Tax Authority [Member] | Federal Ministry of Finance, Germany [Member] | ' |
Note 8 - Income Taxes (Details) [Line Items] | ' |
Operating Loss Carryforwards | 418,000 |
Foreign Tax Authority [Member] | Inland Revenue, Singapore (IRAS) [Member] | ' |
Note 8 - Income Taxes (Details) [Line Items] | ' |
Operating Loss Carryforwards | $513,000 |
Note_8_Income_Taxes_Details_De
Note 8 - Income Taxes (Details) - Deferred Tax Asset (Liabilities) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Deferred Tax Asset (Liabilities) [Abstract] | ' | ' |
Vacation accrual | $4,161 | $4,161 |
Allowance for doubtful Accounts | 13,955 | 13,955 |
Reserve for obsolete inventory | 23,570 | 86,027 |
Net current tax assets | 41,686 | 104,143 |
Business tax credit carryover | 20,184 | 20,184 |
Deferred Compensation | 202,309 | 202,309 |
Net operating loss carryover | 3,132,619 | 2,367,568 |
Excess of book over tax depreciation | -726,555 | -726,712 |
Long term tax asset | $2,628,557 | $1,863,349 |
Note_8_Income_Taxes_Details_Re
Note 8 - Income Taxes (Details) - Reconciliation of Income Tax Expense (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Reconciliation of Income Tax Expense [Abstract] | ' | ' | ' | ' |
Computed tax at expected statutory rate | ' | ' | ($752,797) | ($924,608) |
State and local income taxes, net of federal benefits | ' | ' | -24,704 | -8,533 |
Non-deductible expenses | ' | ' | 40,763 | 111,329 |
Non-US income taxed at different rates | ' | ' | 41,178 | 80,847 |
Other items | ' | ' | ' | -558 |
Income tax expense (benefit) | ($337,118) | ($444,659) | ($695,560) | ($741,523) |
Note_8_Income_Taxes_Details_Co
Note 8 - Income Taxes (Details) - Components of Income Tax Expense (Benefit) from Continuing Operations (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Deferred tax expense (benefit) arising from: | ' | ' | ' | ' |
Net operating loss carryover | ' | ' | ($757,272) | ($728,604) |
Reserve for obsolete inventory | ' | ' | 61,712 | -12,919 |
Deferred tax expense | ' | ' | -695,560 | -741,523 |
Income tax benefit | ($337,118) | ($444,659) | ($695,560) | ($741,523) |
Note_9_Loss_Per_Share_Details
Note 9 - Loss Per Share (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Oct. 09, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Equity Option [Member] | Equity Option [Member] | Warrant [Member] | Warrant [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | ||||
Note 9 - Loss Per Share (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in Shares) | ' | ' | ' | 3,064,130 | 1,964,130 | 7,025,575 | 6,625,575 | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $2.53 | $2.65 | ' | ' | ' | ' | ' | $1.50 | $1.50 | $3.60 | $3.60 |
Class of Warrant or Right, Exercise Price of Warrants or Rights | ' | ' | $2.70 | ' | ' | ' | ' | $1.50 | $1.50 | $4.06 | $4.06 |
Note_9_Loss_Per_Share_Details_
Note 9 - Loss Per Share (Details) - Amounts Used in Computing Earnings Per Share (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Amounts Used in Computing Earnings Per Share [Abstract] | ' | ' | ' | ' |
Income (Loss) attributable to LiqTech International Inc. (in Dollars) | ($762,136) | ($1,308,102) | ($1,517,572) | ($1,977,913) |
Weighted average number of common shares used in basic earnings per share | 27,212,500 | 24,359,852 | 27,212,500 | 24,236,362 |
Effect of dilutive securities, stock options and warrants | 0 | 0 | ' | ' |
Weighted average number of common shares and potentially dilutive securities | 27,212,500 | 24,359,852 | 27,212,500 | 24,236,362 |
Note_10_Stockholders_Equity_De
Note 10 - Stockholders' Equity (Details) (USD $) | 0 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 0 Months Ended | 6 Months Ended | 6 Months Ended | 12 Months Ended | 0 Months Ended | |||||||||||||
Oct. 09, 2013 | Mar. 02, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Oct. 09, 2013 | Oct. 09, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Oct. 09, 2013 | Oct. 09, 2013 | Jun. 30, 2014 | |
Warrant [Member] | Warrant [Member] | Warrant [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Employee Stock Option [Member] | Employee Stock Option [Member] | Employee Stock Option [Member] | Employee Stock Option [Member] | Director [Member] | Founder and Board Member [Member] | Chief Financial Officer [Member] | 2011 Stock Options Plan [Member] | ||||||||
Board of Directors Chairman [Member] | Director [Member] | 2011 Stock Options Plan [Member] | 2011 Stock Options Plan [Member] | |||||||||||||||||||
Note 10 - Stockholders' Equity (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock, Shares Authorized | ' | ' | 100,000,000 | ' | 100,000,000 | ' | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock, Par or Stated Value Per Share (in Dollars per share) | ' | ' | $0.00 | ' | $0.00 | ' | $0.00 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock, Shares, Issued | ' | ' | 27,212,500 | ' | 27,212,500 | ' | 27,212,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock, Shares, Outstanding | ' | ' | 27,212,500 | ' | 27,212,500 | ' | 27,212,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Shares, New Issues | ' | 2,511,500 | ' | ' | ' | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Value, New Issues (in Dollars) | ' | ' | ' | ' | ' | ' | $320,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Shares, Restricted Stock Award, Gross | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300,000 | ' | ' | ' |
Stock Issued During Period, Value, Restricted Stock Award, Gross (in Dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 960,000 | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 33,334 | 133,333 | 133,333 | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred Compensation Share-based Arrangements, Liability, Current (in Dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 320,001 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allocated Share-based Compensation Expense (in Dollars) | ' | ' | 172,205 | 743,519 | 392,623 | 774,888 | ' | ' | ' | 59,400 | 213,333 | ' | ' | ' | 119,891 | 265,266 | 392,623 | 774,888 | ' | ' | ' | ' |
Proceeds from Warrants and Stock Options Exercised (in Dollars) | 4,051,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Warrants and Options, Exercises in Period (in Dollars) | 2,701,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Exercised | ' | ' | ' | ' | ' | ' | ' | 100,000 | 2,626,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,000 | 50,000 | ' |
Share Price (in Dollars per share) | ' | $3.25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Issuance of Common Stock (in Dollars) | ' | 7,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments of Stock Issuance Costs (in Dollars) | ' | 1,082,668 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | $2.70 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants Not Settleable in Cash, Fair Value Disclosure (in Dollars) | 1,124,928 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | ' | ' | 3,064,130 | ' | 3,064,130 | ' | 2,564,130 | ' | ' | 7,025,575 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,064,130 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options (in Dollars) | ' | ' | 495,015 | ' | 495,015 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 698,553 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares | ' | ' | 783,300 | ' | 783,300 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Non-vested, Weighted Average Exercise Price (in Dollars per share) | ' | ' | ' | ' | $2.16 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value (in Dollars per share) | ' | ' | $0.99 | ' | $0.99 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | ' | ' | ' | ' | '2 years 237 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value (in Dollars) | ' | ' | $221,200 | ' | $221,200 | ' | $283,125 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Note_10_Stockholders_Equity_De1
Note 10 - Stockholders' Equity (Details) - Warrants Outstanding (USD $) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2014 | Dec. 31, 2013 | |
Class of Warrant or Right [Line Items] | ' | ' |
Warrants Outstanding (in Shares) | 3,064,130 | 2,564,130 |
Warrants Weighted-average Remaining Contractual Life | '1 year 138 days | '1 year 233 days |
Warrants Weighted-average Exercise Price | $2.53 | $2.65 |
Warrants Exercisable (in Shares) | 2,280,830 | ' |
Warrants Exercisable Weighted-average Exercise Price | $2.66 | ' |
Warrant [Member] | Price Range 1 [Member] | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Warrants Range of Exercise Price | $1.50 | ' |
Warrants Outstanding (in Shares) | 3,874,000 | ' |
Warrants Weighted-average Remaining Contractual Life | '2 years 6 months | ' |
Warrants Weighted-average Exercise Price | $1.50 | ' |
Warrants Exercisable (in Shares) | 3,874,000 | ' |
Warrants Exercisable Weighted-average Exercise Price | $1.50 | ' |
Warrant [Member] | Price Range 2 [Member] | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Warrants Range of Exercise Price | $2.35 | ' |
Warrants Outstanding (in Shares) | 400,000 | ' |
Warrants Weighted-average Remaining Contractual Life | '9 months | ' |
Warrants Weighted-average Exercise Price | $2.35 | ' |
Warrants Exercisable (in Shares) | 400,000 | ' |
Warrants Exercisable Weighted-average Exercise Price | $2.35 | ' |
Warrant [Member] | Price Range 3 [Member] | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Warrants Range of Exercise Price | $2.70 | ' |
Warrants Outstanding (in Shares) | 2,626,000 | ' |
Warrants Weighted-average Remaining Contractual Life | '2 years 6 months | ' |
Warrants Weighted-average Exercise Price | $2.70 | ' |
Warrants Exercisable (in Shares) | 2,626,000 | ' |
Warrants Exercisable Weighted-average Exercise Price | $2.70 | ' |
Warrant [Member] | Price Range 4 [Member] | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Warrants Range of Exercise Price | $4.06 | ' |
Warrants Outstanding (in Shares) | 125,575 | ' |
Warrants Weighted-average Remaining Contractual Life | '2 years 248 days | ' |
Warrants Weighted-average Exercise Price | $4.06 | ' |
Warrants Exercisable (in Shares) | 125,575 | ' |
Warrants Exercisable Weighted-average Exercise Price | $4.06 | ' |
Warrant [Member] | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Warrants Outstanding (in Shares) | 7,025,575 | ' |
Warrants Weighted-average Remaining Contractual Life | '2 years 146 days | ' |
Warrants Weighted-average Exercise Price | $2.04 | ' |
Warrants Exercisable (in Shares) | 7,025,575 | ' |
Warrants Exercisable Weighted-average Exercise Price | $2.04 | ' |
Price Range 1 [Member] | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Warrants Range of Exercise Price | $1.50 | ' |
Price Range 2 [Member] | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Warrants Range of Exercise Price | $1.90 | ' |
Price Range 3 [Member] | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Warrants Range of Exercise Price | $2.35 | ' |
Price Range 4 [Member] | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Warrants Range of Exercise Price | $2.70 | ' |
Note_10_Stockholders_Equity_De2
Note 10 - Stockholders' Equity (Details) - Assumptions Used to Calculate the Fair Values of Stock Options | 6 Months Ended |
Jun. 30, 2014 | |
Note 10 - Stockholders' Equity (Details) - Assumptions Used to Calculate the Fair Values of Stock Options [Line Items] | ' |
Volatility | 40.74% |
Risk free interest rate | 0.67% |
Dividend yield | 0.00% |
Minimum [Member] | ' |
Note 10 - Stockholders' Equity (Details) - Assumptions Used to Calculate the Fair Values of Stock Options [Line Items] | ' |
Expected term (in years) | '3 years |
Maximum [Member] | ' |
Note 10 - Stockholders' Equity (Details) - Assumptions Used to Calculate the Fair Values of Stock Options [Line Items] | ' |
Expected term (in years) | '4 years |
Note_10_Stockholders_Equity_De3
Note 10 - Stockholders' Equity (Details) - Options Outstanding (USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Number outstanding (in Shares) | 3,064,130 |
Weighted average remaing contractual life | '1 year 138 days |
Weighted average exercise price | $2.53 |
Number exercisable (in Shares) | 2,280,830 |
Weighted average exercise price, exercisable | $2.66 |
Price Range 1 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of exercise price, upper | $1.50 |
Number outstanding (in Shares) | 377,500 |
Weighted average remaing contractual life | '237 days |
Weighted average exercise price | $1.50 |
Number exercisable (in Shares) | 377,500 |
Weighted average exercise price, exercisable | $1.50 |
Price Range 2 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of exercise price, upper | $1.90 |
Number outstanding (in Shares) | 500,000 |
Weighted average remaing contractual life | '2 years 211 days |
Weighted average exercise price | $1.90 |
Number exercisable (in Shares) | 166,667 |
Weighted average exercise price, exercisable | $1.90 |
Price Range 3 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of exercise price, upper | $2.35 |
Number outstanding (in Shares) | 600,000 |
Weighted average remaing contractual life | '2 years 9 months |
Weighted average exercise price | $2.35 |
Number exercisable (in Shares) | 150,000 |
Weighted average exercise price, exercisable | $2.35 |
Price Range 4 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of exercise price, upper | $2.70 |
Number outstanding (in Shares) | 75,000 |
Weighted average remaing contractual life | '237 days |
Weighted average exercise price | $2.70 |
Number exercisable (in Shares) | 75,000 |
Weighted average exercise price, exercisable | $2.70 |
Price Range 5 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of exercise price, lower | $3 |
Range of exercise price, upper | $3.60 |
Number outstanding (in Shares) | 1,511,630 |
Weighted average remaing contractual life | '240 days |
Weighted average exercise price | $3.06 |
Number exercisable (in Shares) | 1,511,630 |
Weighted average exercise price, exercisable | $3.04 |
Note_10_Stockholders_Equity_De4
Note 10 - Stockholders' Equity (Details) - Status of the Options Granted and Changes During the Year (USD $) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2014 | Dec. 31, 2013 | |
Status of the Options Granted and Changes During the Year [Abstract] | ' | ' |
Shares | 3,064,130 | 2,564,130 |
Weighted Average Exercise Price | $2.53 | $2.65 |
Average Remaining Life | '1 year 138 days | '1 year 233 days |
Intrinsic Value | $221,200 | $283,125 |
Vested and expected to vest | 3,064,130 | ' |
Vested and expected to vest | $2.53 | ' |
Vested and expected to vest | '1 year 138 days | ' |
Vested and expected to vest | 221,200 | ' |
Exercisable end of period | 2,280,830 | ' |
Exercisable end of period | $2.66 | ' |
Exercisable end of period | '339 days | ' |
Exercisable end of period | $194,533 | ' |
Granted | 500,000 | ' |
Granted | $1.90 | ' |
Granted | '2 years 211 days | ' |
Note_11_Significant_CustomersC2
Note 11 - Significant Customers/Concentration (Details) (Sales Revenue, Net [Member], Customer Concentration Risk [Member]) | 6 Months Ended |
Jun. 30, 2014 | |
Major Customer 1 [Member] | ' |
Note 11 - Significant Customers/Concentration (Details) [Line Items] | ' |
Concentration Risk, Percentage | 20.00% |
Major Customer 2 [Member] | ' |
Note 11 - Significant Customers/Concentration (Details) [Line Items] | ' |
Concentration Risk, Percentage | 9.00% |
Major Customer 3 [Member] | ' |
Note 11 - Significant Customers/Concentration (Details) [Line Items] | ' |
Concentration Risk, Percentage | 6.00% |
Major Customer 4 [Member] | ' |
Note 11 - Significant Customers/Concentration (Details) [Line Items] | ' |
Concentration Risk, Percentage | 6.00% |
Note_11_Significant_CustomersC3
Note 11 - Significant Customers/Concentration (Details) - Net Sales by Geographical Region (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Note 11 - Significant Customers/Concentration (Details) - Net Sales by Geographical Region [Line Items] | ' | ' | ' | ' |
Net sales | $3,973,687 | $2,805,921 | $7,171,189 | $6,205,069 |
Reportable Geographical Components [Member] | US and Canada [Member] | ' | ' | ' | ' |
Note 11 - Significant Customers/Concentration (Details) - Net Sales by Geographical Region [Line Items] | ' | ' | ' | ' |
Net sales | 769,265 | 876,391 | 1,775,470 | 1,527,410 |
Reportable Geographical Components [Member] | AUSTRALIA | ' | ' | ' | ' |
Note 11 - Significant Customers/Concentration (Details) - Net Sales by Geographical Region [Line Items] | ' | ' | ' | ' |
Net sales | 28,363 | 15,644 | 84,315 | 168,390 |
Reportable Geographical Components [Member] | South America [Member] | ' | ' | ' | ' |
Note 11 - Significant Customers/Concentration (Details) - Net Sales by Geographical Region [Line Items] | ' | ' | ' | ' |
Net sales | ' | 4,760 | 16,845 | 25,380 |
Reportable Geographical Components [Member] | Asia [Member] | ' | ' | ' | ' |
Note 11 - Significant Customers/Concentration (Details) - Net Sales by Geographical Region [Line Items] | ' | ' | ' | ' |
Net sales | 188,312 | 332,930 | 494,933 | 1,151,482 |
Reportable Geographical Components [Member] | Europe [Member] | ' | ' | ' | ' |
Note 11 - Significant Customers/Concentration (Details) - Net Sales by Geographical Region [Line Items] | ' | ' | ' | ' |
Net sales | $2,987,747 | $1,576,196 | $4,799,626 | $3,332,407 |
Note_11_Significant_CustomersC4
Note 11 - Significant Customers/Concentration (Details) - Sales by Product Line (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Net sales | $3,973,687 | $2,805,921 | $7,171,189 | $6,205,069 |
Ceramic Diesel Particulate [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Net sales | 2,054,689 | 1,539,971 | 3,618,516 | 3,472,276 |
Liquid Filters [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Net sales | 1,841,580 | 1,035,918 | 3,382,674 | 2,238,870 |
Kiln Furniture [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Net sales | $77,418 | $230,032 | $169,999 | $493,923 |
Note_12_Subsequent_Events_Deta
Note 12 - Subsequent Events (Details) | 0 Months Ended | 12 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | |||||||||||||
Mar. 02, 2012 | Dec. 31, 2013 | Jun. 30, 2014 | Oct. 09, 2013 | Jul. 28, 2014 | Jul. 28, 2014 | Jul. 28, 2014 | Jul. 28, 2014 | Jul. 28, 2014 | Jul. 28, 2014 | Jul. 28, 2014 | Jul. 28, 2014 | Jul. 28, 2014 | Jul. 29, 2014 | Jul. 25, 2014 | Jul. 22, 2014 | Jul. 22, 2014 | Jul. 28, 2014 | |
USD ($) | USD ($) | USD ($) | USD ($) | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | |
Scenario 1 for Year Ending December 31, 2014 [Member] | Scenario 2 for Year Ending December 31, 2014 [Member] | Scenario 1 For the Year Ending December 31, 2015 [Member] | Scenario 2 For the Year Ending December 31, 2015 [Member] | Scenario 1 for Years Ending December 31, 2014 and December 31, 2015 [Member] | Scenario 2 for Years Ending December 31, 2014 and December 31, 2015 [Member] | For Year Ending December 31, 2016 [Member] | Provital Acquisition [Member] | Provital Acquisition [Member] | Chief Executive Officer [Member] | Craig-Hallum Capital Group LLC [Member] | Craig-Hallum Capital Group LLC [Member] | Craig-Hallum Capital Group LLC [Member] | Craig-Hallum Capital Group LLC [Member] | |||||
Provital Acquisition [Member] | Provital Acquisition [Member] | Provital Acquisition [Member] | Provital Acquisition [Member] | Provital Acquisition [Member] | Provital Acquisition [Member] | Provital Acquisition [Member] | USD ($) | DKK | DKK | USD ($) | USD ($) | USD ($) | ||||||
DKK | DKK | DKK | DKK | DKK | DKK | DKK | ||||||||||||
Note 12 - Subsequent Events (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Shares, New Issues (in Shares) | 2,511,500 | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,956,522 |
Common Stock, Par or Stated Value Per Share (in Dollars per share) | ' | $0.00 | $0.00 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.00 |
Share Price (in Dollars per share) | $3.25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1.50 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period (in Shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,043,478 | ' | ' | ' |
Proceeds from Issuance of Warrants (in Dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $50 | ' | ' |
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in Shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 400,000 | 400,000 | ' |
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | ' | ' | ' | $2.70 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1.65 | $1.65 | ' |
Warrants, Term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' |
Payments to Acquire Businesses, Gross | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,300,000 | 12,600,000 | ' | ' | ' | ' | ' |
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares (in Shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,044,782 | 4,044,782 | ' | ' | ' | ' | ' |
Business Acquisition, Requirement for Minimum Revenues | ' | ' | ' | ' | 65,000,000 | 50,000,000 | 120,000,000 | 80,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Acquisition, Requirement for EBITDA | ' | ' | ' | ' | 6,500,000 | 10,000,000 | 12,000,000 | 16,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Acquisition, Requirement for Minimum Revenues | ' | ' | ' | ' | 65,000,000 | 50,000,000 | 120,000,000 | 80,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Acquisition, Requirement for Minimum Revenues | ' | ' | ' | ' | 65,000,000 | 50,000,000 | 120,000,000 | 80,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Acquisition, Requirement for Minimum Revenues | ' | ' | ' | ' | 65,000,000 | 50,000,000 | 120,000,000 | 80,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Acquisition, "Catch Up" Provisions, Minimum Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 185,000,000 | 130,000,000 | 105,000,000 | ' | ' | ' | ' | ' | ' | ' |
Business Acquisition, bCatch Upb Provisions, Minimum EBITDA | ' | ' | ' | ' | ' | ' | ' | ' | 18,500,000 | 26,000,000 | 21,000,000 | ' | ' | ' | ' | ' | ' | ' |
Officers' Compensation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,500,000 | ' | ' | ' | ' |
Compensation Arrangement with Individual, Yearly Bonus Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' | ' | ' | ' |
Compensation Arrangement with Individual, Yearly Bonus, Revenues Benchmark | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 130,000,000 | ' | ' | ' | ' |