Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Nov. 14, 2019 | |
Document Information [Line Items] | ||
Entity Registrant Name | LIQTECH INTERNATIONAL INC | |
Entity Central Index Key | 0001307579 | |
Trading Symbol | liqt | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Common Stock, Shares Outstanding (in shares) | 20,547,668 | |
Entity Shell Company | false | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Title of 12(b) Security | Common Stock, $0.001 par value |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Current Assets: | ||
Cash | $ 9,957,472 | $ 3,776,111 |
Restricted Cash | 1,678,936 | 0 |
Accounts receivable, net | 6,560,857 | 1,308,122 |
Other receivables | 3,697,315 | 1,098,796 |
Contract assets | 641,356 | 624,275 |
Inventories, net | 5,186,234 | 4,432,055 |
Prepaid expenses | 203,024 | 133,847 |
Total Current Assets | 27,925,194 | 11,373,206 |
Long-Term Assets: | ||
Property and Equipment, net | 2,783,420 | 1,431,649 |
Operating lease right-of-use asset | 2,200,130 | |
Construction in progress | 2,138,406 | |
Investments at cost | 5,433 | 5,714 |
Other intangible assets | 748 | |
Deposits | 475,769 | 347,932 |
Goodwill | 605,313 | |
Total Long-Term Assets | 8,208,471 | 1,786,043 |
Total Assets | 36,133,665 | 13,159,249 |
Current Liabilities: | ||
Current portion of capital lease obligations | 13,789 | |
Current maturities of operating lease liabilities | 681,481 | |
Current portion of contingent earn-out | 291,690 | |
Accounts payable | 3,703,850 | 2,122,479 |
Accrued expenses | 3,623,012 | 1,868,229 |
Contract liabilities | 1,165,684 | 516,335 |
Income taxes payable | 31,260 | |
Deferred revenue | 842,254 | 98,781 |
Total Current Liabilities | 10,339,231 | 4,619,613 |
Net deferred income tax liability | 210,393 | |
Contingent earn-out, net of current portion | 583,380 | |
Operating lease liabilities, net of current maturities | 1,561,076 | |
Total Long-term Liabilities | 2,354,849 | |
Total Liabilities | 12,694,080 | 4,619,613 |
Commitment and Contingencies | ||
Stockholders' Equity: | ||
Preferred stock; par value $0.001, 2,500,000 shares authorized; no shares issued or outstanding at September 30, 2019 and December 31, 2018 respectively | ||
Common stock; par value $0.001, 25,000,000 shares authorized, 20,547,668 and 18,228,887 (each after the 4-to-1 reverse stock split) shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively | 20,548 | 18,229 |
Additional paid-in capital | 61,483,032 | 46,575,986 |
Accumulated deficit | (31,448,837) | (32,286,224) |
Deferred compensation | (23,332) | (23,499) |
Accumulated other comprehensive loss | (6,591,826) | (5,744,856) |
Total Stockholders' Equity | 23,439,585 | 8,539,636 |
Total Liabilities and Stockholders' Equity | $ 36,133,665 | $ 13,159,249 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019$ / sharesshares | Dec. 31, 2018$ / sharesshares | |
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 2,500,000 | 2,500,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Common stock, shares issued (in shares) | 20,547,668 | 18,228,887 |
Common stock, shares outstanding (in shares) | 20,547,668 | 18,228,887 |
Common stock, reverse stock split 4-to-1 | 4 | 4 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Net Sales | $ 9,672,716 | $ 3,347,204 | $ 26,391,100 | $ 9,336,614 |
Cost of Goods Sold | 7,444,978 | 3,058,465 | 20,613,172 | 8,447,645 |
Gross Profit | 2,227,738 | 288,739 | 5,777,928 | 888,969 |
Operating Expenses: | ||||
Selling expenses | 461,010 | 414,504 | 1,458,633 | 1,288,294 |
General and administrative expenses | 1,318,505 | 663,547 | 3,057,807 | 2,008,194 |
Research and development expenses | 189,216 | 152,849 | 591,572 | 498,526 |
Total Operating Expense | 1,968,731 | 1,230,900 | 5,108,012 | 3,795,014 |
Income (Loss) from Operations | 259,007 | (942,161) | 669,916 | (2,906,045) |
Other Income (Expense) | ||||
Interest and other income | 28,736 | 1,814 | 54,186 | 12,271 |
Interest expense | (35,292) | (5,463) | (110,442) | (65,937) |
Gain (Loss) on currency transactions | 403,432 | 23,861 | 244,872 | 240,947 |
Gain (Loss) on sale of fixed assets | 474 | (21,145) | ||
Total Other Income (Expense) | 397,350 | 20,212 | 167,471 | 187,281 |
Income (Loss) Before Income Taxes | 656,357 | (921,949) | 837,387 | (2,718,764) |
Income Tax Expense (Income) | ||||
Net Income (Loss) | $ 656,357 | $ (921,949) | $ 837,387 | $ (2,718,764) |
Basic and Diluted Income (Loss) Per Share (in dollars per share) | $ 0.03 | $ (0.05) | $ 0.04 | $ (0.18) |
Basic Weighted Average Common Shares Outstanding (in shares) | 20,547,667 | 18,185,137 | 19,350,533 | 15,199,809 |
Diluted Weighted Average Common Shares Outstanding (in shares) | 20,563,540 | 18,185,137 | 19,366,545 | 15,199,809 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Net Income (Loss) | $ 656,357 | $ (921,949) | $ 837,387 | $ (2,718,764) |
Currency Translation | (1,014,265) | (63,279) | (846,970) | (521,839) |
Total Comprehensive Loss | $ (357,908) | $ (985,228) | $ (9,583) | $ (3,240,603) |
Condensed Consolidated Statem_3
Condensed Consolidated Statement of Stockholders' Equity (Unaudited) - USD ($) | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Deferred Compensation, Share-based Payments [Member] | Total |
BALANCE (in shares) at Dec. 31, 2017 | 2,200,837 | 11,107,316 | |||||
BALANCE at Dec. 31, 2017 | $ 2,201 | $ 11,108 | $ 40,491,229 | $ (28,471,696) | $ (5,040,792) | $ (79,933) | |
Stock based compensation expenses recognized | 18,273 | ||||||
Common shares issued, for services provided (in shares) | 14,852 | ||||||
Common shares issued, for services provided | $ 14 | 59,986 | |||||
Currency translation, net | 174,867 | ||||||
Net Income (Loss) | (1,533,287) | ||||||
BALANCE (in shares) at Mar. 31, 2018 | 2,200,837 | 11,122,168 | |||||
BALANCE at Mar. 31, 2018 | $ 2,201 | $ 11,123 | 40,551,214 | (30,004,983) | (4,865,925) | (61,660) | |
BALANCE (in shares) at Dec. 31, 2017 | 2,200,837 | 11,107,316 | |||||
BALANCE at Dec. 31, 2017 | $ 2,201 | $ 11,108 | 40,491,229 | (28,471,696) | (5,040,792) | (79,933) | |
Currency translation, net | $ (521,839) | ||||||
Net Income (Loss) | (2,718,764) | ||||||
BALANCE (in shares) at Sep. 30, 2018 | 18,185,137 | ||||||
BALANCE at Sep. 30, 2018 | $ 18,185 | 46,411,430 | (31,190,458) | (5,562,631) | (46,666) | ||
BALANCE (in shares) at Mar. 31, 2018 | 2,200,837 | 11,122,168 | |||||
BALANCE at Mar. 31, 2018 | $ 2,201 | $ 11,123 | 40,551,214 | (30,004,983) | (4,865,925) | (61,660) | |
Stock based compensation expenses recognized | 9,161 | ||||||
Currency translation, net | (633,427) | ||||||
Net Income (Loss) | (263,526) | ||||||
Common shares issued, net offering cost (in shares) | 4,862,132 | ||||||
Common shares issued, net offering cost | $ 4,862 | 5,860,215 | |||||
Net additional offering cost of $73,184, for capital raise in May 2019 | (1,390,262) | ||||||
Conversion of mandatory preferred stock issued (in shares) | (2,200,837) | 2,200,837 | |||||
Conversion of mandatory preferred stock issued | $ (2,201) | $ 2,201 | |||||
BALANCE (in shares) at Jun. 30, 2018 | 18,185,137 | ||||||
BALANCE at Jun. 30, 2018 | $ 18,185 | 46,411,430 | (30,268,509) | (5,499,352) | (52,499) | ||
Stock based compensation expenses recognized | 5,833 | ||||||
Currency translation, net | (63,279) | (63,279) | |||||
Net Income (Loss) | (921,949) | $ (921,949) | |||||
BALANCE (in shares) at Sep. 30, 2018 | 18,185,137 | ||||||
BALANCE at Sep. 30, 2018 | $ 18,185 | 46,411,430 | (31,190,458) | (5,562,631) | (46,666) | ||
BALANCE (in shares) at Dec. 31, 2018 | 18,228,887 | ||||||
BALANCE at Dec. 31, 2018 | $ 18,229 | 46,575,986 | (32,286,224) | (5,744,856) | (23,499) | ||
Stock based compensation expenses recognized | 5,778 | 10,166 | |||||
Common shares issued, for services provided (in shares) | 28,993 | ||||||
Common shares issued, for services provided | $ 29 | 134,138 | (21,667) | ||||
Exercise of stock options (in shares) | 45,000 | ||||||
Exercise of stock options | $ 45 | 133,155 | |||||
Currency translation, net | (213,922) | ||||||
Net Income (Loss) | 34,244 | ||||||
BALANCE (in shares) at Mar. 31, 2019 | 18,302,880 | ||||||
BALANCE at Mar. 31, 2019 | $ 18,303 | 46,849,057 | (32,251,980) | (5,958,778) | (35,000) | ||
BALANCE (in shares) at Dec. 31, 2018 | 18,228,887 | ||||||
BALANCE at Dec. 31, 2018 | $ 18,229 | 46,575,986 | (32,286,224) | (5,744,856) | (23,499) | ||
Exercise of stock options (in shares) | 45,000 | ||||||
Currency translation, net | $ (846,970) | ||||||
Net Income (Loss) | 837,387 | ||||||
BALANCE (in shares) at Sep. 30, 2019 | 20,547,668 | ||||||
BALANCE at Sep. 30, 2019 | $ 20,548 | 61,483,032 | (31,448,837) | (6,591,826) | (23,332) | ||
BALANCE (in shares) at Mar. 31, 2019 | 18,302,880 | ||||||
BALANCE at Mar. 31, 2019 | $ 18,303 | 46,849,057 | (32,251,980) | (5,958,778) | (35,000) | ||
Stock based compensation expenses recognized | 17,333 | 5,834 | |||||
Currency translation, net | 381,217 | ||||||
Net Income (Loss) | 146,786 | ||||||
Exercise of warrants (in shares) | 28,887 | ||||||
Exercise of warrants | $ 29 | (29) | |||||
Common shares issued, net offering cost (in shares) | 2,215,862 | ||||||
Common shares issued, net offering cost | $ 2,216 | 14,672,522 | |||||
Net additional offering cost of $73,184, for capital raise in May 2019 | (747,423) | ||||||
BALANCE (in shares) at Jun. 30, 2019 | 20,547,668 | ||||||
BALANCE at Jun. 30, 2019 | $ 20,548 | 61,538,883 | (32,105,194) | (5,577,561) | (29,166) | ||
Stock based compensation expenses recognized | 17,333 | 5,834 | |||||
Currency translation, net | (1,014,265) | (1,014,265) | |||||
Net Income (Loss) | 656,357 | $ 656,357 | |||||
Net additional offering cost of $73,184, for capital raise in May 2019 | (73,184) | ||||||
BALANCE (in shares) at Sep. 30, 2019 | 20,547,668 | ||||||
BALANCE at Sep. 30, 2019 | $ 20,548 | $ 61,483,032 | $ (31,448,837) | $ (6,591,826) | $ (23,332) |
Condensed Consolidated Statem_4
Condensed Consolidated Statement of Stockholders' Equity (Unaudited) (Parentheticals) - USD ($) | 3 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Common Stock [Member] | ||||
Shares issued, price per share (in dollars per share) | $ 7.25 | $ 1.36 | $ 4.63 | $ 4.04 |
Convertible Preferred shares, convertible securities (in shares) | 4 | |||
Additional Paid-in Capital [Member] | ||||
Shares issued, offering cost | $ 747,423 | $ 1,390,262 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash Flows from Operating Activities: | ||
Net Income (Loss) | $ 837,387 | $ (2,718,764) |
Adjustments to reconcile net loss to net cash provided (used) by operations: | ||
Depreciation and amortization | 852,705 | 621,460 |
Stock-based compensation | 174,778 | 93,267 |
Changes in assets and liabilities: | ||
Accounts receivable | (4,652,294) | (1,369,207) |
Other receivables | (2,593,412) | |
Inventory | (430,776) | 290,567 |
Construction in progress | (2,138,406) | |
Prepaid expenses and deposits | (104,928) | (47,243) |
Account payable | 1,481,881 | (301,016) |
Accrued expenses | 1,769,893 | (326,932) |
Operating lease liability | (347,747) | |
Contract assets and liabilities, net | 632,268 | (80,338) |
Total Adjustments | (5,356,038) | (1,119,442) |
Net Cash Used in Operating Activities | (4,518,651) | (3,838,206) |
Cash Flows from Investing Activities: | ||
Purchase of property and equipment | (510,403) | (145,984) |
Proceeds from sale/recovery of property and equipment | 23,700 | |
Net cash paid for acquisition | (1,154,902) | |
Net Cash Used in Investing Activities | (1,641,605) | (145,984) |
Cash Flows from Financing Activities: | ||
Net proceeds/payments on capital lease obligation | (13,789) | 48,127 |
Proceeds from exercise of stock options | 133,200 | |
Proceeds from issuance of common stocks, net | 14,601,554 | 5,865,077 |
Net Cash Provided by Financing Activities | 14,720,965 | 5,913,204 |
Gain (Loss) on Currency Translation | (700,412) | (553,618) |
Net Change in Cash, Cash Equivalents and Restricted Cash | 7,860,297 | 1,375,396 |
Cash, Cash Equivalents and Restricted Cash at Beginning of Period | 3,776,111 | 2,486,199 |
Cash, Cash Equivalents and Restricted Cash at End of Period | 11,636,408 | 3,861,595 |
Supplemental Disclosures of Cash Flow Information: | ||
Interest Paid | 4,909 | 54,655 |
Income Taxes | ||
Supplemental Disclosures of Non-Cash Investing and Financing: | ||
Common stock issued for conversion of mandatory preferred stock | 8,803 | |
Offering costs for common stocks issuance | $ 1,463,446 | $ 747,423 |
Note 1 - Summary of Significant
Note 1 - Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | NOTE 1 Business and Basis of Presentation The consolidated financial statements include the accounts of LiqTech International, Inc., the “Company” and its subsidiaries. The terms "Company", “us", "we" and "our" as used in this report refer to the Company and its subsidiaries, which are set forth below. The Company engages in the development, design, production, marketing and sale of automated filtering systems, ceramic silicon carbide liquid and diesel particulate air filters in United States, Canada, Europe, Asia and South America. Set forth below is a description of the Company and each of its subsidiaries: LiqTech International, Inc., a Nevada corporation organized in July 2004, LiqTech USA, a Delaware corporation and a 100% May 2011. LiqTech International A/S, a Danish corporation, incorporated on January 15, 2000 ( 100% LiqTech NA, Inc. (“LiqTech NA”), incorporated in Delaware on July 1, 2005, 100% LiqTech Systems A/S, a Danish Corporation ("LiqTech Systems") was incorporated on September 1, 2009 BS Plastic A/S, a Danish Corporation ("BS Plastic") was acquired on September 1, 2019 LiqTech Germany (“LiqTech Germany”), a 100% December 9, 2011, 2019. LiqTech PTE Ltd (“LiqTech Sing”), a 95% January 19, 2012, 2019. Consolidation -- Functional Currency / Foreign currency translation -- nine September 30, 2019 2018. Cash, Cash Equivalents and Restricted Cash -- three September 30, 2019 2018, $1,678,936 $0, no September 30, 2019 December 31, 2018. Accounts Receivable -- The roll forward of the allowance for doubtful accounts for the nine September 30, 2019 December 31, 2018 September 30, 2019 December 31, 2018 Allowance for doubtful accounts at the beginning of the period $ 971,772 $ 660,581 Addition from acquisition 21,895 - Bad debt expense 3,763 353,562 Receivables written off during the periods (3,494 ) - Effect of currency translation (48,057 ) (42,371 ) Allowance for doubtful accounts at the end of the period $ 945,879 $ 971,772 Inventory -- first first Leases -- In February 2016, No. 2016 02, 842” On January 1, 2019, 842 not 12 not not may $2.1 $2.1 842 not Property and Equipment -- three ten Long-Term Investments -- may may not may Intangible Assets -- 350, two ten Revenue Recognition and Sales Incentives Accounting policy January 1, 2018, 606, 2015, 2016 2017 January 1, 2018. not For membrane and DPF product sales, revenue is recognized when performance obligations under the terms of a contract with the customer are satisfied, which occurs when control of the membrane, DPF or services are transferred to the customer. The majority of the Company's sales contracts contain performance obligations satisfied at a point in time when title and risks and rewards of ownership have transferred to the customer. This generally occurs when the product is shipped or accepted by the customer. Revenue for service contracts are recognized as the services are provided. Revenue is measured as the amount of consideration expected to be received in exchange for transferring the goods or providing services. The satisfaction of performance obligations under the terms of a revenue contract generally gives rise to the right for payment from the customer. The Company's standard payment terms vary by the type and location of the customer and the products or services offered. Generally, the time between when revenue is recognized and when payment is due is not not For contracts with customers that include multiple performance obligations, judgment is required to determine whether performance obligations specified in these contracts are distinct and should be accounted for as separate revenue transactions for recognition purposes. For such arrangements, revenue is allocated to each performance obligation based on its relative standalone selling price. Standalone selling prices are generally determined based on the prices charged to customers or using expected cost-plus margin. System sales are recognized when the Company transfers control based upon signed acceptance of the system by the customer upon shipment of the system based on the terms of the contract. For the majority of systems, the Company transfers control and recognizes revenue when products are shipped to the customer according to the terms of the contract or purchase order. In connection with the system it is normal procedure to issue a FAT (Factory Acceptance Test) stating that the customer has accepted the performance of the system as it is being shipped from the production facility in Hobro. As part of the performance obligation, the customer is normally offered commissioning services (final assembly and configuration at a place designated by the customer) and this commissioning is therefore considered a second second first Aftermarket sales represent parts, extended warranty and maintenance services. For the sale of aftermarket parts, the Company transfers control and recognizes revenue when parts are shipped to the customer or services are provided. When customers are given the right to return eligible parts and accessories, the Company estimates the expected returns based on an analysis of historical experience. The Company adjusts estimated revenues at the earlier of when the most likely amount of consideration expected to be received changes or when the consideration becomes fixed. The Company recognizes revenue for extended warranty and maintenance agreements based on the standalone selling price over the life of the contract. For invoicing to customers where the transfer of control has not The Company has received long-term contracts for grants from government entities for the development and use of silicon carbide membranes in various water filtration and treatment applications and historically in the installation of various water filtrations systems. We measure transfer of control of the performance obligation on long-term contracts utilizing the cost-to-cost measure of progress, with cost of revenue including direct costs, such as labor and materials. Under the cost-to-cost approach, the use of estimated costs to complete each performance obligation is a significant variable in the process of determining recognized revenue and a significant factor in the accounting for such performance obligations. The timing of when we bill our customers is generally dependent upon advance billings terms, milestone billings based on completion of certain phases of the work or when services are provided, or products are shipped. Projects with performance obligations recognized over time that have costs and estimated earnings recognized to date in excess of cumulative billings are reported on our balance sheets as Contract assets. Projects with performance obligations recognized over time that have cumulative billings in excess of costs and estimated earnings recognized to date are reported on our balance sheets as Contract liabilities. In Denmark, Value Added Tax (“VAT”) of 25% not The Company’s disaggregated revenue is reported in Note 8. Advertising Cost -- $8,280 $21,693 three $80,630 $25,018 nine September 30, 2019 2018, Research and Development Cost -- $189,216 $152,849 three $591,572 $498,526, nine September 30, 2019 2018 Income Taxes -- 740 Income (Loss) Per Share -- 260, not Stock Options and Awards -- 7 718, $23,167 $5,833 three $174,778 $93,267 nine September 30, 2019 2018, Fair Value of Financial Instruments -- 820. three ● Level 1. ● Level 2. ● Level 3. no 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 -- Recent Accounting Pronouncements June 2018, No. 2018 07, 718” 718 first 2019, not In August 2018, 2018 15 2018 15” Intangibles - Goodwill and Other - Internal-Use Software (Topic 350 40 2018 15 December 15, 2019 In August 2018, No. 2018 13, 820 December 15, 2019, In August 2018, No. 33 10532, 10 November 5, 2018. first 10 first 2019 In February 2016, No. 2016 02, 842 842" one 842 January 1, 2019 not $2.1 $2.1 one 842 not 4 In November 2016, No. 2016 18, September 30, 2019 $1,678,936 $9,957,472 $11,636,408 December 31, 2018 $0 $3,776,111 Other recent accounting pronouncements issued by the FASB did not not |
Note 2 - Inventory
Note 2 - Inventory | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | NOTE 2 Inventory consisted of the following at September 30, 2019 December 31, 2018: 2019 2018 Furnace parts and supplies $ 611,911 $ 596,806 Raw materials 2,101,188 1,659,826 Work in process 1,644,988 1,691,175 Finished goods and filtration systems 1,608,185 1,596,042 Reserve for obsolescence (780,038 ) (1,111,794 ) Net Inventory $ 5,186,234 $ 4,432,055 |
Note 3 - Lines of Credit
Note 3 - Lines of Credit | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | NOTE 3 In connection with certain orders, we have to provide the customer with a working guarantee or a prepayment guarantee or security bond. For that purpose, we have a guaranteed credit line of DKK 94,620 $13,800 September 30, 2019) September 30, 2018, 94,620 $14,690 |
Note 4 - Leases
Note 4 - Leases | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
Lessee, Operating and Finance Leases [Text Block] | NOTE 4 The Company leases certain vehicles, real property and office equipment under lease agreements. The Company evaluates each lease to determine its appropriate classification as an operating lease or finance lease for financial reporting purposes. The majority of our operating leases are non-cancelable operating leases for production and office space in Copenhagen and White Bear Lake, Minnesota. On January 1, 2019, 842 2018, Supplemental balance sheet information related to leases as of September 30, 2019 2018 September 30, 2019 December 31, 2018 Operating leases Operating lease right-of-use $ 2,200,130 $ - Operating lease liabilities – current $ 681,481 $ - Operating lease liabilities – long-term 1,561,076 - Total operating lease liabilities $ 2,242,557 $ - Finance leases Property and equipment, at cost $ 1,115,891 $ 1,171,295 Accumulated depreciation (1,115,891 ) (1,162,256 ) Property and equipment, net $ - $ 9,039 Finance lease liabilities – current $ - $ 13,789 Finance lease liabilities – long-term - - Total finance lease liabilities $ - $ 13,789 Weighted average remaining lease term: Operating leases 4.3 - Finance lease - 0.8 Weighted average discount rate: Operating leases 6.9 % - Finance leases - % 7.3 % Maturities of lease liabilities at September 30, 2019 Operating lease Finance lease October 2019 – September 2020 $ 711,058 $ - October 2020 – September 2021 574,753 - October 2021 – September 2022 468,283 - October 2022 – September 2023 433,132 - October 2023 – September 2024 357,179 - Thereafter - - Total payment under lease agreements 2,544,405 - Less imputed interest (301,848 ) - Total lease liability $ 2,242,557 $ - As previously disclosed in our 2018 10 842, December 31, 2018 Year ending December 31, Operating lease 2019 $ 712,250 2020 578,997 2021 402,584 2022 350,249 Thereafter 560,977 Total $ 2,605,057 |
Note 5 - Agreements and Commitm
Note 5 - Agreements and Commitments | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 5 401 401 three September 30, 2019 2018, $3,007 $2,569, nine September 30, 2019 2018, $8,684 $8,275, Contingencies may On November 20, 2018 DKK448,500 $68,800 2016 not No September 30, 2019 not On February 27, 2019, DKK543,905 $83,400 2017. 2018. no September 30, 2019. In connection with certain orders, we have to provide the customer with a working guarantee or a prepayment guarantee or security bond. For that purpose, we have a guaranteed line of DKK 94,620 $13,800 September 30, 2019) September 30, 2018, 94,620 $14,690 Product Warranties one three may In addition, the Company sells an extended warranty for certain systems, which generally provides a warranty for up to four The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. Factors that affect the warranty liability include the number of units sold, historical and anticipated rates of warranty claims and the cost per claim. The Company has assessed the adequacy of the recorded warranty liability at the end of the 3 rd 2019 4 7% 3% January 1, 2019 Changes in the Company's current and long-term warranty obligations, including deferred revenue on extended warranty contracts included in accrued expenses on the balance sheet, are as follows: 2019 Balance at December 31, 2018 $ 432,225 Current year warranty expense 621,142 Change in estimate related to pre-existing warranties - Payments made (307,596 ) Foreign currency effect (31,001 ) Balance at September 30, 2019 $ 714,770 Purchase obligation not $3.8 September 30, 2019 $1.6 no |
Note 6 - Earnings Per Share
Note 6 - Earnings Per Share | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | NOTE 6 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 nine September 30, 2019 2018: For the Three Months For the Nine Months Ended September 30, Ended September 30, 2019 2018 2019 2018 Net Income (Loss) attributable to LiqTech International, Inc. $ 656,357 $ (921,949 ) $ 837,387 $ (2,718,764 ) Weighted average number of common shares used in basic earnings per share 20,547,667 18,185,137 19,350,533 15,199,809 Effect of dilutive securities, stock options and warrants 15,873 - 16,012 - Weighted average number of common shares and potential dilutive common shares outstanding used in dilutive earnings per share 20,563,540 18,185,137 19,366,545 15,199,809 For the nine September 30, 2019, 25,000 $2.96 For the nine September 30, 2018, 113,750 $2.96 100,000 $6.60 not |
Note 7 - Stockholders' Equity
Note 7 - Stockholders' Equity | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE 7 Common Stock 25,000,000 $0.001 September 30, 2019, December 31, 2018, 20,547,668 4 1 April 8, 2019) 18,228,887 Voting one not Dividends -- may may Liquidation Rights -- Other Matters -- no no Preferred Stock -- one may may The Company has 2,500,000 $0.001 September 30, 2019 December 31, 2018, 0 Stock Issuances Since January 1, 2019, 4 1 April 8, 2019): On March 5, 2019, 24,827 $112,500 On January 24, January 28, February 6 March 1, 2019, 45,000 2015 $2.96 $133,200. On May 22, 2019, 2,215,862 $7.25 $14,599,338 $1,463,446 On June 6, 2019 28,887 2014. For the nine September 30, 2019 2018, $62,278 $33,267 Stock Options In August 2015, September 30, 2019, 25,000 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 Company recognized stock-based compensation expense related to the options of $0 $33,267 nine September 30, 2019 2018, September 30, 2019, $0 A summary of the status of the options outstanding under the Company’s stock option plan at September 30, 2019 Options Outstanding Options Exercisable Exercise Number Weighted (years) Weighted Number Weighted $ 2.96 25,000 0.87 $ 2.96 25,000 $ 2.96 Total 25,000 0.87 $ 2.96 25,000 $ 2.96 A summary of the status of the options at September 30, 2019, Shares Weighted Average Weighted Outstanding at beginning of period 70,000 $ 2.96 1.62 $ - Granted - - - - Exercised (45,000 ) - - - Forfeited - - - - Expired - - - - Outstanding at end of period 25,000 $ 2.96 0.87 $ - Vested and expected to vest 25,000 $ 2.96 0.87 $ - Exercisable end of period 25,000 $ 2.96 0.87 $ - |
Note 8 - Significant Customers
Note 8 - Significant Customers / Concentration / Disaggregated Revenue | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | NOTE 8 The following table presents customers accounting for 10% For the Three Months For the Nine Months Ended September 30, Ended September 30, 2019 2018 2019 2018 Customer A 34 % * 31 % * Customer B * * 20 % * Customer C 28 % * 17 % * * Zero or less than 10% The following table presents customers accounting for 10% September 30, 2019 December 31, 2018 Customer A 49 % 58 % Customer C 16 % * The Company sells products throughout the world; disaggregated revenue by geographical region is as follows for the three nine September 30, 2019 2018: For the Three Months For the Nine Months Ended September 30, Ended September 30, 2019 2018 2019 2018 United States and Canada $ 701,194 $ 273,806 $ 1,389,423 $ 643,556 Australia 139,451 181,174 354,965 463,967 South America - 22,775 - 50,452 Asia 2,962,521 154,715 5,135,327 1,083,332 Europe 5,869,550 2,714,734 19,511,385 7,095,307 $ 9,672,716 $ 3,347,204 $ 26,391,100 $ 9,336,614 The Company’s disaggregated revenue by product line is as follows for the three nine September 30, 2019 2018: For the Three Months For the Nine Months Ended September 30, Ended September 30, 2019 2018 2019 2018 Ceramic diesel particulate $ 1,330,337 $ 1,841,136 $ 4,320,839 $ 5,085,203 Liquid filters and systems 7,920,745 1,426,107 21,414,214 3,878,355 Development projects 137,148 79,961 371,561 373,056 Plastic products 284,486 - 284,486 - $ 9,672,716 $ 3,347,204 $ 26,391,100 $ 9,336,614 As of September 30, 2019, 90% 10% September 30, 2018, 91% 9% |
Note 9 - Acquisition
Note 9 - Acquisition | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | NOTE 9 On September 4, 2019 The acquisition was accounted for as a business combination in accordance with ASC 805, not not no one not $1,332,090 may $888,060 3 $614,300 may The purchase price calculation is as follows: Cash $ 1,332,090 Liabilities short-term 296,020 Liabilities long-term 592,040 Total $ 2,220,150 The following table summarizes the preliminary estimated fair value of the assets acquired and liabilities assumed at the date of purchase: Cash and bank balances $ 177,188 Account receivables 600,441 Inventory 323,403 Other receivables / deferred expenses 59,235 Deposits 53,304 Property and Equipment 1,397,421 Account payables (99,490 ) Other debt and accrued expenses (660,990 ) Accrued income tax (31,146 ) Deferred tax liability (213,516 ) 1,605,850 Goodwill 614,300 $ 2,220,150 Transaction and other costs directly related to the acquisition of BS Plastic A/S, consisting primarily of professional fees, have amounted to approximately $29,500 |
Note 10 - Subsequent Events
Note 10 - Subsequent Events | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | NOTE 10 - SUBSEQUENT EVENTS The Company’s management reviewed material events through November 14, 2019 no |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
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., the “Company” and its subsidiaries. The terms "Company", “us", "we" and "our" as used in this report refer to the Company and its subsidiaries, which are set forth below. The Company engages in the development, design, production, marketing and sale of automated filtering systems, ceramic silicon carbide liquid and diesel particulate air filters in United States, Canada, Europe, Asia and South America. Set forth below is a description of the Company and each of its subsidiaries: LiqTech International, Inc., a Nevada corporation organized in July 2004, LiqTech USA, a Delaware corporation and a 100% May 2011. LiqTech International A/S, a Danish corporation, incorporated on January 15, 2000 ( 100% LiqTech NA, Inc. (“LiqTech NA”), incorporated in Delaware on July 1, 2005, 100% LiqTech Systems A/S, a Danish Corporation ("LiqTech Systems") was incorporated on September 1, 2009 BS Plastic A/S, a Danish Corporation ("BS Plastic") was acquired on September 1, 2019 LiqTech Germany (“LiqTech Germany”), a 100% December 9, 2011, 2019. LiqTech PTE Ltd (“LiqTech Sing”), a 95% January 19, 2012, 2019. |
Consolidation, Policy [Policy Text Block] | Consolidation -- |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Functional Currency / Foreign currency translation -- nine September 30, 2019 2018. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash, Cash Equivalents and Restricted Cash -- three September 30, 2019 2018, $1,678,936 $0, no September 30, 2019 December 31, 2018. |
Loans and Leases Receivable, Allowance for Loan Losses Policy [Policy Text Block] | Accounts Receivable -- The roll forward of the allowance for doubtful accounts for the nine September 30, 2019 December 31, 2018 September 30, 2019 December 31, 2018 Allowance for doubtful accounts at the beginning of the period $ 971,772 $ 660,581 Addition from acquisition 21,895 - Bad debt expense 3,763 353,562 Receivables written off during the periods (3,494 ) - Effect of currency translation (48,057 ) (42,371 ) Allowance for doubtful accounts at the end of the period $ 945,879 $ 971,772 |
Inventory, Policy [Policy Text Block] | Inventory -- first first |
Lessee, Leases [Policy Text Block] | Leases -- In February 2016, No. 2016 02, 842” On January 1, 2019, 842 not 12 not not may $2.1 $2.1 842 not |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment -- three ten |
Investment, Policy [Policy Text Block] | Long-Term Investments -- may may not may |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Intangible Assets -- 350, two ten |
Revenue from Contract with Customer [Policy Text Block] | Accounting policy January 1, 2018, 606, 2015, 2016 2017 January 1, 2018. not For membrane and DPF product sales, revenue is recognized when performance obligations under the terms of a contract with the customer are satisfied, which occurs when control of the membrane, DPF or services are transferred to the customer. The majority of the Company's sales contracts contain performance obligations satisfied at a point in time when title and risks and rewards of ownership have transferred to the customer. This generally occurs when the product is shipped or accepted by the customer. Revenue for service contracts are recognized as the services are provided. Revenue is measured as the amount of consideration expected to be received in exchange for transferring the goods or providing services. The satisfaction of performance obligations under the terms of a revenue contract generally gives rise to the right for payment from the customer. The Company's standard payment terms vary by the type and location of the customer and the products or services offered. Generally, the time between when revenue is recognized and when payment is due is not not For contracts with customers that include multiple performance obligations, judgment is required to determine whether performance obligations specified in these contracts are distinct and should be accounted for as separate revenue transactions for recognition purposes. For such arrangements, revenue is allocated to each performance obligation based on its relative standalone selling price. Standalone selling prices are generally determined based on the prices charged to customers or using expected cost-plus margin. System sales are recognized when the Company transfers control based upon signed acceptance of the system by the customer upon shipment of the system based on the terms of the contract. For the majority of systems, the Company transfers control and recognizes revenue when products are shipped to the customer according to the terms of the contract or purchase order. In connection with the system it is normal procedure to issue a FAT (Factory Acceptance Test) stating that the customer has accepted the performance of the system as it is being shipped from the production facility in Hobro. As part of the performance obligation, the customer is normally offered commissioning services (final assembly and configuration at a place designated by the customer) and this commissioning is therefore considered a second second first Aftermarket sales represent parts, extended warranty and maintenance services. For the sale of aftermarket parts, the Company transfers control and recognizes revenue when parts are shipped to the customer or services are provided. When customers are given the right to return eligible parts and accessories, the Company estimates the expected returns based on an analysis of historical experience. The Company adjusts estimated revenues at the earlier of when the most likely amount of consideration expected to be received changes or when the consideration becomes fixed. The Company recognizes revenue for extended warranty and maintenance agreements based on the standalone selling price over the life of the contract. For invoicing to customers where the transfer of control has not The Company has received long-term contracts for grants from government entities for the development and use of silicon carbide membranes in various water filtration and treatment applications and historically in the installation of various water filtrations systems. We measure transfer of control of the performance obligation on long-term contracts utilizing the cost-to-cost measure of progress, with cost of revenue including direct costs, such as labor and materials. Under the cost-to-cost approach, the use of estimated costs to complete each performance obligation is a significant variable in the process of determining recognized revenue and a significant factor in the accounting for such performance obligations. The timing of when we bill our customers is generally dependent upon advance billings terms, milestone billings based on completion of certain phases of the work or when services are provided, or products are shipped. Projects with performance obligations recognized over time that have costs and estimated earnings recognized to date in excess of cumulative billings are reported on our balance sheets as Contract assets. Projects with performance obligations recognized over time that have cumulative billings in excess of costs and estimated earnings recognized to date are reported on our balance sheets as Contract liabilities. In Denmark, Value Added Tax (“VAT”) of 25% not The Company’s disaggregated revenue is reported in Note 8. |
Advertising Cost [Policy Text Block] | Advertising Cost -- $8,280 $21,693 three $80,630 $25,018 nine September 30, 2019 2018, |
Research, Development, and Computer Software, Policy [Policy Text Block] | Research and Development Cost -- $189,216 $152,849 three $591,572 $498,526, nine September 30, 2019 2018 |
Income Tax, Policy [Policy Text Block] | Income Taxes -- 740 |
Earnings Per Share, Policy [Policy Text Block] | Income (Loss) Per Share -- 260, not |
Share-based Payment Arrangement [Policy Text Block] | Stock Options and Awards -- 7 718, $23,167 $5,833 three $174,778 $93,267 nine September 30, 2019 2018, |
Fair Value Measurement, Policy [Policy Text Block] | Fair Value of Financial Instruments -- 820. three ● Level 1. ● Level 2. ● Level 3. no 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 -- |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements June 2018, No. 2018 07, 718” 718 first 2019, not In August 2018, 2018 15 2018 15” Intangibles - Goodwill and Other - Internal-Use Software (Topic 350 40 2018 15 December 15, 2019 In August 2018, No. 2018 13, 820 December 15, 2019, In August 2018, No. 33 10532, 10 November 5, 2018. first 10 first 2019 In February 2016, No. 2016 02, 842 842" one 842 January 1, 2019 not $2.1 $2.1 one 842 not 4 In November 2016, No. 2016 18, September 30, 2019 $1,678,936 $9,957,472 $11,636,408 December 31, 2018 $0 $3,776,111 Other recent accounting pronouncements issued by the FASB did not not |
Note 1 - Summary of Significa_2
Note 1 - Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Notes Tables | |
Financing Receivable, Allowance for Credit Loss [Table Text Block] | September 30, 2019 December 31, 2018 Allowance for doubtful accounts at the beginning of the period $ 971,772 $ 660,581 Addition from acquisition 21,895 - Bad debt expense 3,763 353,562 Receivables written off during the periods (3,494 ) - Effect of currency translation (48,057 ) (42,371 ) Allowance for doubtful accounts at the end of the period $ 945,879 $ 971,772 |
Note 2 - Inventory (Tables)
Note 2 - Inventory (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | 2019 2018 Furnace parts and supplies $ 611,911 $ 596,806 Raw materials 2,101,188 1,659,826 Work in process 1,644,988 1,691,175 Finished goods and filtration systems 1,608,185 1,596,042 Reserve for obsolescence (780,038 ) (1,111,794 ) Net Inventory $ 5,186,234 $ 4,432,055 |
Note 4 - Leases (Tables)
Note 4 - Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Notes Tables | |
Lessee, Operating and Finance Lease, Assets and Liabilities [Table Text Block] | September 30, 2019 December 31, 2018 Operating leases Operating lease right-of-use $ 2,200,130 $ - Operating lease liabilities – current $ 681,481 $ - Operating lease liabilities – long-term 1,561,076 - Total operating lease liabilities $ 2,242,557 $ - Finance leases Property and equipment, at cost $ 1,115,891 $ 1,171,295 Accumulated depreciation (1,115,891 ) (1,162,256 ) Property and equipment, net $ - $ 9,039 Finance lease liabilities – current $ - $ 13,789 Finance lease liabilities – long-term - - Total finance lease liabilities $ - $ 13,789 Weighted average remaining lease term: Operating leases 4.3 - Finance lease - 0.8 Weighted average discount rate: Operating leases 6.9 % - Finance leases - % 7.3 % |
Maturity of Operating and Finance Lease Liabilities [Table Text Block] | Operating lease Finance lease October 2019 – September 2020 $ 711,058 $ - October 2020 – September 2021 574,753 - October 2021 – September 2022 468,283 - October 2022 – September 2023 433,132 - October 2023 – September 2024 357,179 - Thereafter - - Total payment under lease agreements 2,544,405 - Less imputed interest (301,848 ) - Total lease liability $ 2,242,557 $ - |
Schedule of Future Minimum Lease Payments for Capital Leases and Operating Leases [Table Text Block] | Year ending December 31, Operating lease 2019 $ 712,250 2020 578,997 2021 402,584 2022 350,249 Thereafter 560,977 Total $ 2,605,057 |
Note 5 - Agreements and Commi_2
Note 5 - Agreements and Commitments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Notes Tables | |
Schedule of Product Warranty Liability [Table Text Block] | 2019 Balance at December 31, 2018 $ 432,225 Current year warranty expense 621,142 Change in estimate related to pre-existing warranties - Payments made (307,596 ) Foreign currency effect (31,001 ) Balance at September 30, 2019 $ 714,770 |
Note 6 - Earnings Per Share (Ta
Note 6 - Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Notes Tables | |
Schedule of Weighted Average Number of Shares [Table Text Block] | For the Three Months For the Nine Months Ended September 30, Ended September 30, 2019 2018 2019 2018 Net Income (Loss) attributable to LiqTech International, Inc. $ 656,357 $ (921,949 ) $ 837,387 $ (2,718,764 ) Weighted average number of common shares used in basic earnings per share 20,547,667 18,185,137 19,350,533 15,199,809 Effect of dilutive securities, stock options and warrants 15,873 - 16,012 - Weighted average number of common shares and potential dilutive common shares outstanding used in dilutive earnings per share 20,563,540 18,185,137 19,366,545 15,199,809 |
Note 7 - Stockholders' Equity (
Note 7 - Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Notes Tables | |
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block] | Options Outstanding Options Exercisable Exercise Number Weighted (years) Weighted Number Weighted $ 2.96 25,000 0.87 $ 2.96 25,000 $ 2.96 Total 25,000 0.87 $ 2.96 25,000 $ 2.96 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable [Table Text Block] | Shares Weighted Average Weighted Outstanding at beginning of period 70,000 $ 2.96 1.62 $ - Granted - - - - Exercised (45,000 ) - - - Forfeited - - - - Expired - - - - Outstanding at end of period 25,000 $ 2.96 0.87 $ - Vested and expected to vest 25,000 $ 2.96 0.87 $ - Exercisable end of period 25,000 $ 2.96 0.87 $ - |
Note 8 - Significant Customer_2
Note 8 - Significant Customers / Concentration / Disaggregated Revenue (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Notes Tables | |
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | For the Three Months For the Nine Months Ended September 30, Ended September 30, 2019 2018 2019 2018 Customer A 34 % * 31 % * Customer B * * 20 % * Customer C 28 % * 17 % * September 30, 2019 December 31, 2018 Customer A 49 % 58 % Customer C 16 % * |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | For the Three Months For the Nine Months Ended September 30, Ended September 30, 2019 2018 2019 2018 United States and Canada $ 701,194 $ 273,806 $ 1,389,423 $ 643,556 Australia 139,451 181,174 354,965 463,967 South America - 22,775 - 50,452 Asia 2,962,521 154,715 5,135,327 1,083,332 Europe 5,869,550 2,714,734 19,511,385 7,095,307 $ 9,672,716 $ 3,347,204 $ 26,391,100 $ 9,336,614 |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | For the Three Months For the Nine Months Ended September 30, Ended September 30, 2019 2018 2019 2018 Ceramic diesel particulate $ 1,330,337 $ 1,841,136 $ 4,320,839 $ 5,085,203 Liquid filters and systems 7,920,745 1,426,107 21,414,214 3,878,355 Development projects 137,148 79,961 371,561 373,056 Plastic products 284,486 - 284,486 - $ 9,672,716 $ 3,347,204 $ 26,391,100 $ 9,336,614 |
Note 9 - Acquisition (Tables)
Note 9 - Acquisition (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Notes Tables | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | Cash $ 1,332,090 Liabilities short-term 296,020 Liabilities long-term 592,040 Total $ 2,220,150 Cash and bank balances $ 177,188 Account receivables 600,441 Inventory 323,403 Other receivables / deferred expenses 59,235 Deposits 53,304 Property and Equipment 1,397,421 Account payables (99,490 ) Other debt and accrued expenses (660,990 ) Accrued income tax (31,146 ) Deferred tax liability (213,516 ) 1,605,850 Goodwill 614,300 $ 2,220,150 |
Note 1 - Summary of Significa_3
Note 1 - Summary of Significant Accounting Policies (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Jan. 01, 2019 | Dec. 31, 2018 | |
Restricted Cash and Cash Equivalents, Current, Total | $ 1,678,936 | $ 1,678,936 | $ 0 | |||
Cash, Uninsured Amount | 0 | 0 | 0 | |||
Operating Lease, Right-of-Use Asset | 2,200,130 | 2,200,130 | ||||
Operating Lease, Liability, Total | 2,242,557 | $ 2,242,557 | ||||
Value Added Tax Of Invoice, Percentage | 25.00% | |||||
Advertising Expense | 8,280 | $ 21,693 | $ 80,630 | $ 25,018 | ||
Research and Development Expense, Total | 189,216 | 152,849 | 591,572 | 498,526 | ||
Share-based Payment Arrangement, Expenses Including Shares Issued as a Bonus | 23,167 | $ 5,833 | 174,778 | $ 93,267 | ||
Cash and Cash Equivalents, at Carrying Value, Ending Balance | 9,957,472 | 9,957,472 | $ 3,776,111 | |||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Ending Balance | $ 11,636,408 | $ 11,636,408 | ||||
Minimum [Member] | ||||||
Property, Plant and Equipment, Useful Life | 3 years | |||||
Finite-Lived Intangible Asset, Useful Life | 2 years | |||||
Maximum [Member] | ||||||
Property, Plant and Equipment, Useful Life | 10 years | |||||
Finite-Lived Intangible Asset, Useful Life | 10 years | |||||
Accounting Standards Update 2016-02 [Member] | ||||||
Operating Lease, Right-of-Use Asset | $ 2,100,000 | |||||
Operating Lease, Liability, Total | $ 2,100,000 | |||||
LiqTech USA [Member] | LiqTech International DK [Member] | ||||||
Percentage of Subsidiary Owned | 100.00% | 100.00% | ||||
LiqTech USA [Member] | LiqTech NA [Member] | ||||||
Percentage of Subsidiary Owned | 100.00% | 100.00% | ||||
LiqTech International DK [Member] | LiqTech Germany [Member] | ||||||
Percentage of Subsidiary Owned | 100.00% | 100.00% | ||||
LiqTech International DK [Member] | LiqTech PTE [Member] | ||||||
Percentage of Subsidiary Owned | 95.00% | 95.00% | ||||
LiqTech USA [Member] | ||||||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | 100.00% |
Note 1 - Summary of Significa_4
Note 1 - Summary of Significant Accounting Policies - Allowance for Doubtful Accounts (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Allowance for doubtful accounts | $ 971,772 | $ 660,581 |
Addition from acquisition | 21,895 | |
Bad debt expense | 3,763 | 353,562 |
Receivables written off during the periods | (3,494) | |
Effect of currency translation | (48,057) | (42,371) |
Allowance for doubtful accounts | $ 945,879 | $ 971,772 |
Note 2 - Inventory - Summary of
Note 2 - Inventory - Summary of Inventory (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Furnace parts and supplies | $ 611,911 | $ 596,806 |
Raw materials | 2,101,188 | 1,659,826 |
Work in process | 1,644,988 | 1,691,175 |
Finished goods and filtration systems | 1,608,185 | 1,596,042 |
Reserve for obsolescence | (780,038) | (1,111,794) |
Net Inventory | $ 5,186,234 | $ 4,432,055 |
Note 3 - Lines of Credit (Detai
Note 3 - Lines of Credit (Details Textual) | Sep. 30, 2019USD ($) | Sep. 30, 2019DKK (kr) | Sep. 30, 2018USD ($) | Sep. 30, 2018DKK (kr) |
Line of Credit Facility, Maximum Borrowing Capacity | $ 13,800 | kr 94,620 | ||
Guarantor Obligations, Current Carrying Value | $ 14,690 | kr 94,620 |
Note 4 - Leases - Balance Sheet
Note 4 - Leases - Balance Sheet Information (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Operating Lease, Right-of-Use Asset | $ 2,200,130 | |
Operating lease liabilities – current | 681,481 | |
Operating lease liabilities – long-term | 1,561,076 | |
Operating Lease, Liability, Total | 2,242,557 | |
Property and equipment, at cost | 1,115,891 | 1,171,295 |
Accumulated depreciation | (1,115,891) | (1,162,256) |
Property and equipment, net | 9,039 | |
Finance lease liabilities – current | 13,789 | |
Finance lease liabilities – long-term | ||
Total lease liability | $ 13,789 | |
Operating leases (Year) | 4 years 109 days | |
Finance lease (Year) | 292 days | |
Operating leases | 6.90% | |
Finance leases | 7.30% |
Note 4 - Leases - Maturities of
Note 4 - Leases - Maturities of Lease Liabilities (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
October 2019 – September 2020 | $ 711,058 | |
October 2019 – September 2020 | ||
October 2020 – September 2021 | 574,753 | |
October 2020 – September 2021 | ||
October 2021 – September 2022 | 468,283 | |
October 2021 – September 2022 | ||
October 2022 – September 2023 | 433,132 | |
October 2022 – September 2023 | ||
October 2023 – September 2024 | 357,179 | |
October 2023 – September 2024 | ||
Thereafter | ||
Thereafter | ||
Total payment under lease agreements | 2,544,405 | |
Total payment under lease agreements | ||
Less imputed interest | (301,848) | |
Less imputed interest | ||
Operating Lease, Liability, Total | 2,242,557 | |
Total lease liability | $ 13,789 |
Note 4 - Leases - Payments Unde
Note 4 - Leases - Payments Under Operating and Finance Lease (Details) | Dec. 31, 2018USD ($) |
2019, Operating lease | $ 712,250 |
2020, Operating lease | 578,997 |
2021, Operating lease | 402,584 |
2022, Operating lease | 350,249 |
Thereafter, Operating lease | 560,977 |
Total | $ 2,605,057 |
Note 5 - Agreements and Commi_3
Note 5 - Agreements and Commitments (Details Textual) | Feb. 27, 2019USD ($) | Feb. 27, 2019DKK (kr) | Nov. 20, 2018USD ($) | Nov. 20, 2018DKK (kr) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019DKK (kr) | Jan. 01, 2019 | Dec. 31, 2018 | Sep. 30, 2018DKK (kr) |
Defined Contribution Plan, Cost | $ 3,007 | $ 2,569 | $ 8,684 | $ 8,275 | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 13,800 | 13,800 | kr 94,620 | |||||||||
Guarantor Obligations, Current Carrying Value | $ 14,690 | $ 14,690 | kr 94,620 | |||||||||
Warranty Accrual, Percent | 3.00% | 7.00% | ||||||||||
Purchase Obligation, Total | 3,800,000 | 3,800,000 | ||||||||||
Prepaid Purchase Obligation | $ 1,600,000 | $ 1,600,000 | ||||||||||
LiqTech International AS [Member] | Claim with Former Supplier for Breach of Agreement [Member] | ||||||||||||
Loss Contingency, Damages Sought, Value | $ 68,800 | kr 448,500 | ||||||||||
LiqTech International AS [Member] | Claim with Former Supplier for Services Rendered [Member] | ||||||||||||
Loss Contingency, Damages Sought, Value | $ 83,400 | kr 543,905 |
Note 5 - Agreements and Commi_4
Note 5 - Agreements and Commitments - Product Warranties (Details) | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Balance | $ 432,225 |
Current year warranty expense | 621,142 |
Change in estimate related to pre-existing warranties | |
Payments made | (307,596) |
Foreign currency effect | (31,001) |
Balance | $ 714,770 |
Note 6 - Earnings Per Share (De
Note 6 - Earnings Per Share (Details Textual) - $ / shares | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Mar. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Ending Balance | $ 2.96 | $ 2.96 | ||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 6.60 | |||
Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Ending Balance | $ 2.96 | $ 2.96 | $ 2.96 | |
Share-based Payment Arrangement, Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 25,000 | 113,750 | ||
Warrant [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 100,000 |
Note 6 - Earnings Per Share - A
Note 6 - Earnings Per Share - Amounts Used in Computing Earnings Per Share (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Net Income (Loss) attributable to LiqTech International, Inc. | $ 656,357 | $ (921,949) | $ 837,387 | $ (2,718,764) |
Weighted average number of common shares used in basic earnings per share (in shares) | 20,547,667 | 18,185,137 | 19,350,533 | 15,199,809 |
Effect of dilutive securities, stock options and warrants (in shares) | 15,873 | 16,012 | ||
Weighted average number of common shares and potential dilutive common shares outstanding used in dilutive earnings per share (in shares) | 20,563,540 | 18,185,137 | 19,366,545 | 15,199,809 |
Note 7 - Stockholders' Equity_2
Note 7 - Stockholders' Equity (Details Textual) | Jun. 06, 2019shares | May 22, 2019USD ($)$ / sharesshares | Mar. 05, 2019USD ($)shares | Apr. 08, 2018 | Mar. 01, 2019USD ($)$ / sharesshares | Sep. 30, 2019USD ($)$ / sharesshares | Sep. 30, 2018USD ($) | Dec. 31, 2018$ / sharesshares |
Common Stock, Shares Authorized | 25,000,000 | 25,000,000 | ||||||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.001 | $ 0.001 | ||||||
Common Stock, Shares, Issued, Total | 20,547,668 | 18,228,887 | ||||||
Common Stock, Shares, Outstanding, Ending Balance | 20,547,668 | 18,228,887 | ||||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 4 | 4 | ||||||
Preferred Stock, Shares Authorized | 2,500,000 | 2,500,000 | ||||||
Preferred Stock, Shares Issued, Total | 0 | 0 | ||||||
Preferred Stock, Shares Outstanding, Ending Balance | 0 | 0 | ||||||
Proceeds from Stock Options Exercised | $ | $ 133,200 | |||||||
Proceeds from Issuance of Common Stock | $ | $ 14,601,554 | 5,865,077 | ||||||
Class of Warrant or Right, Exercised During Period | 28,887 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance | 25,000 | 70,000 | ||||||
Share-based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount | $ | $ 0 | |||||||
The 2011 Stock Options Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance | 25,000 | |||||||
Public Offering [Member] | ||||||||
Stock Issued During Period, Shares, New Issues | 2,215,862 | |||||||
Share Price | $ / shares | $ 7.25 | |||||||
Proceeds from Issuance of Common Stock | $ | $ 14,599,338 | |||||||
Payments of Stock Issuance Costs | $ | $ 1,463,446 | |||||||
The 2015 Stock Option Plan [Member] | ||||||||
Stock Issued During Period, Shares, New Issues | 45,000 | |||||||
Share Price | $ / shares | $ 2.96 | |||||||
Proceeds from Stock Options Exercised | $ | $ 133,200 | |||||||
Stock Awards Other than Options [Member] | ||||||||
Share-based Payment Arrangement, Expense | $ | $ 62,278 | 33,267 | ||||||
Share-based Payment Arrangement, Option [Member] | The 2011 Stock Options Plan [Member] | ||||||||
Share-based Payment Arrangement, Expense | $ | $ 0 | $ 33,267 | ||||||
Director [Member] | ||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 24,827 | |||||||
Stock Issued During Period, Value, Restricted Stock Award, Gross | $ | $ 112,500 | |||||||
Convertible Preferred Stock [Member] | ||||||||
Preferred Stock, Shares Issued, Total | 0 | 0 | ||||||
Preferred Stock, Shares Outstanding, Ending Balance | 0 | 0 | ||||||
Reverse Stock Split [Member] | ||||||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 4 |
Note 7 - Stockholders' Equity -
Note 7 - Stockholders' Equity - Warrants Outstanding by Exercise Price (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Exercise prices of warrants (in dollars per share) | $ 6.60 | |
Warrants outstanding (in shares) | 25,000 | |
Warrants outstanding, weighted average remaining contractual life (Year) | 317 days | |
Warrants outstanding, weighted average exercise price (in dollars per share) | $ 2.96 | |
Warrants exercisable (in shares) | 25,000 | |
Warrants exercisable, weighted average exercise price (in dollars per share) | $ 2.96 | |
Warrant 1 [Member] | ||
Exercise prices of warrants (in dollars per share) | $ 2.96 | |
Warrants outstanding (in shares) | 25,000 | |
Warrants outstanding, weighted average remaining contractual life (Year) | 317 days | |
Warrants outstanding, weighted average exercise price (in dollars per share) | $ 2.96 | |
Warrants exercisable (in shares) | 25,000 | |
Warrants exercisable, weighted average exercise price (in dollars per share) | $ 2.96 |
Note 7 - Stockholders' Equity_3
Note 7 - Stockholders' Equity - Status of Options and Changes During the Year (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Outstanding, shares (in shares) | 70,000 | |
Outstanding, weighted average exercise price (in dollars per share) | $ 2.96 | |
Outstanding, average remaining life (Year) | 317 days | 1 year 226 days |
Granted, shares (in shares) | ||
Granted, weighted average exercise price (in dollars per share) | ||
Exercised, shares (in shares) | (45,000) | |
Exercised, weighted average exercise price (in dollars per share) | ||
Forfeited, shares (in shares) | ||
Forfeited, weighted average exercise price (in dollars per share) | ||
Expired, shares (in shares) | ||
Expired, weighted average exercise price (in dollars per share) | ||
Outstanding, shares (in shares) | 25,000 | 70,000 |
Outstanding, weighted average exercise price (in dollars per share) | $ 2.96 | $ 2.96 |
Outstanding, weighted average intrinsic value | ||
Vested and expected to vest, shares (in shares) | 25,000 | |
Vested and expected to vest, weighted average exercise price (in dollars per share) | $ 2.96 | |
Vested and expected to vest, average remaining life (Year) | 317 days | |
Vested and expected to vest, weighted average intrinsic value | ||
Exercisable end of period, shares (in shares) | 25,000 | |
Exercisable end of period, weighted average exercise price (in dollars per share) | $ 2.96 | |
Exercisable end of period, average remaining life (Year) | 317 days | |
Exercisable end of period, weighted average intrinsic value |
Note 8 - Significant Customer_3
Note 8 - Significant Customers / Concentration / Disaggregated Revenue (Details Textual) - Geographic Concentration Risk [Member] - Assets, Total [Member] | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
DENMARK | ||
Concentration Risk, Percentage | 90.00% | 91.00% |
UNITED STATES | ||
Concentration Risk, Percentage | 10.00% | 9.00% |
Note 8 - Significant Customer_4
Note 8 - Significant Customers / Concentration / Disaggregated Revenue - Concentration of Risk (Details) - Customer Concentration Risk [Member] | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | |||
Revenue Benchmark [Member] | Customer A [Member] | |||||
Concentration Risk, Percentage | 34.00% | 31.00% | |||
Revenue Benchmark [Member] | Customer B [Member] | |||||
Concentration Risk, Percentage | [1] | 20.00% | |||
Revenue Benchmark [Member] | Customer C [Member] | |||||
Concentration Risk, Percentage | 28.00% | 17.00% | |||
Accounts Receivable [Member] | Customer A [Member] | |||||
Concentration Risk, Percentage | 49.00% | 58.00% | |||
Accounts Receivable [Member] | Customer C [Member] | |||||
Concentration Risk, Percentage | 16.00% | [1] | |||
[1] | Zero or less than 10% |
Note 8 - Significant Customer_5
Note 8 - Significant Customers / Concentration / Disaggregated Revenue - Net Sales by Geographical Region (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Net Sales | $ 9,672,716 | $ 3,347,204 | $ 26,391,100 | $ 9,336,614 |
Reportable Geographical Components [Member] | US And Canada [Member] | ||||
Net Sales | 701,194 | 273,806 | 1,389,423 | 643,556 |
Reportable Geographical Components [Member] | AUSTRALIA | ||||
Net Sales | 139,451 | 181,174 | 354,965 | 463,967 |
Reportable Geographical Components [Member] | South America [Member] | ||||
Net Sales | 22,775 | 50,452 | ||
Reportable Geographical Components [Member] | Asia [Member] | ||||
Net Sales | 2,962,521 | 154,715 | 5,135,327 | 1,083,332 |
Reportable Geographical Components [Member] | Europe [Member] | ||||
Net Sales | $ 5,869,550 | $ 2,714,734 | $ 19,511,385 | $ 7,095,307 |
Note 8 - Significant Customer_6
Note 8 - Significant Customers / Concentration / Disaggregated Revenue - Sales by Product Line (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Net Sales | $ 9,672,716 | $ 3,347,204 | $ 26,391,100 | $ 9,336,614 |
Ceramic Diesel Particulate [Member] | ||||
Net Sales | 1,330,337 | 1,841,136 | 4,320,839 | 5,085,203 |
Liquid Filters [Member] | ||||
Net Sales | 7,920,745 | 1,426,107 | 21,414,214 | 3,878,355 |
Development Projects [Member] | ||||
Net Sales | 137,148 | 79,961 | 371,561 | 373,056 |
Plastic Products [Member] | ||||
Net Sales | $ 284,486 | $ 284,486 |
Note 9 - Acquisition (Details T
Note 9 - Acquisition (Details Textual) - BS Plastic [Member] | Sep. 04, 2019USD ($) |
Payments to Acquire Businesses, Gross | $ 1,332,090 |
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 888,060 |
Business Combination, Contingent Consideration Arrangements, Earn Out Period | 3 years |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Including Goodwill | $ 614,300 |
Business Combination, Acquisition Related Costs | $ 29,500 |
Note 9 - Acquisition - Purchase
Note 9 - Acquisition - Purchase Price Allocation, Assets Acquired and Liabilities Assumed (Details) - USD ($) | Sep. 04, 2019 | Sep. 30, 2019 | Dec. 31, 2018 |
Goodwill | $ 605,313 | ||
BS Plastic [Member] | |||
Payments to Acquire Businesses, Gross | $ 1,332,090 | ||
Liabilities short-term | 296,020 | ||
Liabilities long-term | 592,040 | ||
Total | 2,220,150 | ||
Cash and bank balances | 177,188 | ||
Account receivables | 600,441 | ||
Inventory | 323,403 | ||
Other receivables / deferred expenses | 59,235 | ||
Deposits | 53,304 | ||
Property and Equipment | 1,397,421 | ||
Account payables | (99,490) | ||
Other debt and accrued expenses | (660,990) | ||
Accrued income tax | (31,146) | ||
Deferred tax liability | (213,516) | ||
1,605,850 | |||
Goodwill | 614,300 | ||
$ 2,220,150 |