Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | May 11, 2020 | |
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 | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Interactive Data Current | Yes | |
Entity Common Stock, Shares Outstanding (in shares) | 20,555,880 | |
Entity Shell Company | false | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Title of 12(b) Security | Common Stock, $0.001 par value |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Current Assets: | ||
Cash, cash equivalents and restricted cash | $ 6,299,042 | $ 9,783,932 |
Accounts receivable, net of allowance for doubtful accounts of $599,863 and $612,434 at March 31, 2020 and December 31, 2019, respectively | 8,042,101 | 6,272,760 |
Inventories, net of allowance for excess and obsolete inventory of $654,895 and $665,308 at March 31, 2020 and December 31, 2019, respectively | 5,324,499 | 5,199,238 |
Contract assets | 5,137,111 | 5,664,929 |
Prepaid expenses and other current assets | 822,306 | 566,398 |
Total Current Assets | 25,625,059 | 27,487,257 |
Long-Term Assets: | ||
Property and Equipment, net | 5,529,919 | 4,825,952 |
Operating lease right-of-use assets | 4,876,698 | 5,053,614 |
Deposits and other | 488,656 | 498,053 |
Intangible assets, net | 456,517 | 488,716 |
Goodwill | 231,285 | 236,131 |
Total Long-Term Assets | 11,583,075 | 11,102,466 |
Total Assets | 37,208,134 | 38,589,723 |
Current Liabilities: | ||
Accounts payable | 3,226,114 | 4,339,070 |
Accrued expenses | 3,290,386 | 3,222,951 |
Current portion of finance lease obligations | 34,403 | 34,772 |
Current maturities of operating lease liabilities | 985,360 | 999,685 |
Current portion of contingent earn-out | 293,436 | 299,585 |
Contract liabilities | 1,351,666 | 1,421,376 |
Income taxes payable | 14,402 | 14,692 |
Total Current Liabilities | 9,195,767 | 10,332,131 |
Deferred tax liability | 316,587 | 338,763 |
Finance lease obligations, net of current portion | 160,006 | 172,273 |
Operating lease liabilities, net of current maturities | 3,994,609 | 4,141,855 |
Contingent earn-out, net of current portion | 586,872 | 599,170 |
Total Long-term Liabilities | 5,058,074 | 5,252,061 |
Total Liabilities | 14,253,841 | 15,584,192 |
Stockholders' Equity: | ||
Series A Mandatory Convertible Preferred stock; par value $0.001, 2,500,000 shares authorized, 0 and 0 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively | ||
Common stock; par value $0.001, 25,000,000 shares authorized, 20,555,880 and 20,547,668 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively | 20,556 | 20,548 |
Additional paid-in capital | 61,539,364 | 61,398,150 |
Accumulated deficit | (31,943,109) | (32,246,608) |
Accumulated other comprehensive loss | (6,662,518) | (6,166,559) |
Total Stockholders' Equity | 22,954,293 | 23,005,531 |
Total Liabilities and Stockholders' Equity | $ 37,208,134 | $ 38,589,723 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Accounts receivable, allowance for doubtful accounts | $ 599,863 | $ 612,434 |
Inventories, allowance for excess and obsolete inventory | $ 654,895 | $ 665,308 |
Preferred stock, par value (in dollars per share) | $ 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) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Common stock, shares issued (in shares) | 20,555,880 | 20,547,668 |
Common stock, shares outstanding (in shares) | 20,555,880 | 20,547,668 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue | $ 10,281,844 | $ 7,421,198 |
Cost of Goods Sold | 7,642,768 | 5,946,118 |
Gross Profit | 2,639,076 | 1,475,080 |
Operating Expenses: | ||
Selling expenses | 676,800 | 483,587 |
General and administrative expenses | 1,470,393 | 770,864 |
Research and development expenses | 310,954 | 203,172 |
Total Operating Expense | 2,458,147 | 1,457,623 |
Income from Operations | 180,929 | 17,457 |
Other Income (Expense) | ||
Interest and other income | 4,490 | 7,277 |
Interest expense | (104,856) | (38,648) |
Gain on currency transactions | 207,627 | 48,158 |
Total Other Income | 107,261 | 16,787 |
Income Before Income Taxes | 288,190 | 34,244 |
Income Tax Benefit | (15,309) | |
Net Income | $ 303,499 | $ 34,244 |
Basic Income Per Share (in dollars per share) | $ 0.01 | $ 0 |
Diluted Income Per Share (in dollars per share) | $ 0.01 | $ 0 |
Basic Weighted Average Common Shares Outstanding (in shares) | 20,554,524 | 18,267,068 |
Diluted Weighted Average Common Shares Outstanding (in shares) | 20,711,035 | 19,145,875 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Net Income | $ 303,499 | $ 34,244 |
Other Comprehensive Loss - Currency Translation, Net | (495,959) | (213,922) |
Total Comprehensive Loss | $ (192,460) | $ (179,678) |
Condensed Consolidated Statem_3
Condensed Consolidated Statement of Stockholders' Equity (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
BALANCE (in shares) at Dec. 31, 2018 | 18,228,887 | ||||
BALANCE at Dec. 31, 2018 | $ 18,229 | $ 46,552,487 | $ (32,286,224) | $ (5,744,856) | $ 8,539,636 |
Common shares issued, for services provided (in shares) | 28,993 | ||||
Common shares issued, for services provided | $ 29 | 112,471 | 112,500 | ||
Stock based compensation | 15,944 | 15,944 | |||
Currency translation, net | (213,922) | (213,922) | |||
Net Income | 34,244 | 34,244 | |||
Exercising of stock options (in shares) | 45,000 | ||||
Exercising of stock options | $ 45 | 133,155 | 133,200 | ||
BALANCE (in shares) at Mar. 31, 2019 | 18,302,880 | ||||
BALANCE at Mar. 31, 2019 | $ 18,303 | 46,814,057 | (32,251,980) | (5,958,778) | 8,621,602 |
BALANCE (in shares) at Dec. 31, 2019 | 20,547,668 | ||||
BALANCE at Dec. 31, 2019 | $ 20,548 | 61,398,150 | (32,246,608) | (6,166,559) | 23,005,531 |
Common shares issued, for services provided (in shares) | 8,212 | ||||
Common shares issued, for services provided | $ 8 | 44,992 | 45,000 | ||
Stock based compensation | 96,222 | 96,222 | |||
Currency translation, net | (495,959) | (495,959) | |||
Net Income | 303,499 | $ 303,499 | |||
Exercising of stock options (in shares) | |||||
BALANCE (in shares) at Mar. 31, 2020 | 20,555,880 | ||||
BALANCE at Mar. 31, 2020 | $ 20,556 | $ 61,539,364 | $ (31,943,109) | $ (6,662,518) | $ 22,954,293 |
Condensed Consolidated Statem_4
Condensed Consolidated Statement of Stockholders' Equity (Unaudited) (Parentheticals) - $ / shares | Mar. 31, 2020 | Mar. 31, 2019 |
Shares issued, offering cost per share (in dollars per share) | $ 5.48 | $ 4.63 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash Flows from Operating Activities: | ||
Net Income | $ 303,499 | $ 34,244 |
Adjustments to reconcile net income to net cash provided by (used in) operations: | ||
Depreciation and amortization | 534,021 | 278,400 |
Stock-based compensation | 141,222 | 128,444 |
Change in deferred tax asset / liability | (15,309) | |
Changes in assets and liabilities: | ||
Accounts receivable | (1,769,341) | (1,403,171) |
Inventory | (125,261) | 135,340 |
Contract assets | 527,818 | (3,342,724) |
Deposits | (945,496) | |
Prepaid expenses and other current assets | (255,908) | (122,094) |
Accounts payable | (1,112,956) | 3,418,700 |
Accrued expenses | 67,435 | 701,038 |
Operating lease liabilities | (183,180) | (92,691) |
Contract liabilities | (69,710) | 321,911 |
Total Adjustments | (2,261,169) | (922,343) |
Net Cash used in Operating Activities | (1,957,670) | (888,099) |
Cash Flows from Investing Activities: | ||
Purchase of property and equipment | (1,064,960) | (169,546) |
Purchase of other intangible assets | (2,739) | |
Net Cash used in Investing Activities | (1,067,699) | (169,546) |
Cash Flows from Financing Activities: | ||
Payments on finance lease obligation | (8,434) | (7,138) |
Proceeds from exercise of stock options | 133,200 | |
Net Cash provided by (used in) Financing Activities | (8,434) | 126,062 |
Loss on Currency Translation | (451,087) | (243,483) |
Net change in Cash, Cash Equivalents and Restricted Cash | (3,484,890) | (1,175,066) |
Cash, Cash Equivalents and Restricted Cash at Beginning of Period | 9,783,932 | 3,776,111 |
Cash, Cash Equivalents and Restricted Cash at End of Period | 6,299,042 | 2,601,045 |
Supplemental Disclosures of Cash Flow Information: | ||
Interest Paid | 16,514 | 23,541 |
Income Taxes |
Note 1 - Summary of Significant
Note 1 - Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
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 applications and diesel particulate air filters in the 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”), incorporated on September 1, 2009, BS Plastic A/S, a Danish Corporation (“BS Plastic”), acquired on September 1, 2019, LiqTech Ceramics A/S, a Danish corporation (“LiqTech Ceramics”), incorporated on December 20, 2019 LiqTech Germany (“LiqTech Germany”), a 100% December 9, 2011. 2020. LiqTech PTE Ltd (“LiqTech Sing”), a 95% January 19, 2012. 2020. Consolidation -- Functional Currency / Foreign currency translation -- three March 31, 2020 2019. Cash, Cash Equivalents and Restricted Cash -- three March 31, 2020 December 31, 2019, $2,711,273 $2,714,173, no March 31, 2020 December 31, 2019. Accounts Receivable -- The roll-forward of the allowance for doubtful accounts for the period ended March 31, 2020 December 31, 2019 March 31, 20 20 December 31, 201 9 Allowance for doubtful accounts at the beginning of the period $ 612,434 $ 971,772 Bad debt expense 327 25,044 Receivables written off during the periods (327 ) (362,244 ) Effect of currency translation (12,571 ) (22,138 ) Allowance for doubtful accounts at the end of the period $ 599,863 $ 612,434 Inventory – first first For inventory produced, standard costs that approximate actual cost on the FIFO method are used to value inventory. Standard costs are reviewed at least annually by management, or more often in the event that circumstances indicate a change in cost has occurred. Work in process and finished goods include material, labor and production overhead costs. The company adjusts the value of its inventory to the extent that management determines that the cost cannot be recovered due to obsolescence or other factors. Inventory valuation adjustments for excess and obsolete inventory are calculated based on current inventory levels, movement, expected useful lives, and estimated future demand of the products and spare parts. Unbilled receivables – no 12 Leases -- February 2016, No. 2016 02, 842” On January 1, 2019, 842 not 12 not not may 842 not Property and Equipment -- three ten Goodwill and Intangible Assets -- not Acquired intangible assets with determinable useful lives are amortized on a straight-line or accelerated basis over the estimated periods benefited, ranging from one 10 five The Company evaluates the recoverability of long-lived assets by comparing the carrying amount of an asset to estimated future net undiscounted cash flows generated by the asset. If such assets are considered to be impaired, the impairment recognized is measured as the amount by which the carrying amount of the assets exceeds the fair value of the assets. The evaluation of recoverability involves estimates of future operating cash flows based upon certain forecasted assumptions, including, but not Goodwill is not Revenue Recognition -- January 1, 2018, 606, 2015, 2016 2017 January 1, 2018. not The Company sells products throughout the world; sales by geographical region are as follows for the three March 31, 2020 2019: For the Three months e nded March 31 20 20 201 9 United States and Canada $ 126,482 $ 113,059 Australia 42,255 62,113 South America 10,896 319,528 Asia 2,033,288 1,239,113 Europe 8,068,923 5,687,385 $ 10,281,844 $ 7,421,198 The Company’s sales by product line are as follows for the three March 31, 2020 2019: For the Three months e nded March 31 20 20 201 9 Ceramic diesel particulate $ 1,560,062 $ 2,243,268 Liquid filters and systems 7,980,287 5,040,333 Plastics 581,411 - Development projects 160,084 137,597 $ 10,281,844 $ 7,421,198 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 or DPF transfers to the customer or when services are rendered by the Company. 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 warranties and maintenance services. For the sale of aftermarket parts, the Company transfers control and recognizes revenue when parts are shipped to the customer. 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. 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. Contract assets are the Company’s rights to consideration in exchange for goods or services and is recognized when a performance obligation has been satisfied but has not third second The roll-forward of Contract Assets / Liabilities for the three March 31, 2020 December 31, 2019 March 31, 2020 December 31, 2019 Cost incurred $ 3,795,520 $ 3,960,199 Unbilled project deliveries 2,386,541 1,971,106 VAT 626,621 862,368 Other receivables 97,082 58,397 Prepayments (1,964,914 ) (1,732,231 ) Deferred Revenue (1,155,405 ) (876,286 ) $ 3,785,445 $ 4,243,553 Distributed as follows: Contract Assets $ 5,137,111 $ 5,664,929 Contract Liabilities (1,351,666 ) (1,421,376 ) $ 3,785,445 $ 4,243,553 Advertising Cost -- $25,237 $22,592 three March 31, 2020 2019, Research and Development Cost -- three March 31, 2020 2019 $310,954 $203,172, Income Taxes -- 740 Income/(Loss) Per Share -- 260, not Stock Options and Awards -- 718, $141,222 $128,444 three March 31, 2020 2019, 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, other receivables, prepaid expenses, accounts payable and accrued expenses approximates their recorded values due to their short-term maturities. The following table sets forth the liabilities at March 31, 2020, Fair value at reporting date using: March 31, 2020 Quoted prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable inputs (Level 3) Contingent Earn-out Liability $ 880,308 $ - $ - $ 880,308 The roll forward of the Earn-out liability is as follows: Balance at December 31, 2019 $ 898,755 Foreign currency effect (18,447 ) Balance at March 31, 2020 $ 880,308 Accounting Estimates -- Recent Accounting Pronouncements -- August 2018, No. 2018 13, 820 December 15, 2019, In November 2016, No. 2016 18, March 31, 2020 $2,711,273 $3,587,769 $6,299,042 December 31, 2019 $2,714,173 $7,069,759 Other recent accounting pronouncements issued by the FASB did not not |
Note 2 - Inventory
Note 2 - Inventory | 3 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | NOTE 2 Inventory consisted of the following at March 31, 2020 December 31, 2019: 20 20 201 9 Furnace parts and supplies $ 925,300 $ 621,991 Raw materials 1,967,234 2,125,921 Work in process 1,877,131 1,624,499 Finished goods and filtration systems 1,209,729 1,492,135 Reserve for obsolescence (654,895 ) (665,308 ) Net Inventory $ 5,324,499 $ 5,199,238 Inventory valuation adjustments for excess and obsolete inventory are calculated based on current inventory levels, movements, expected useful lives, and estimated future demand for the products. |
Note 3 - Lines of Credit
Note 3 - Lines of Credit | 3 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | NOTE 3 In connection with certain orders, we provide the customer a working guarantee, a prepayment guarantee or security bond. For that purpose, we have a guarantee credit line DKK10,000,000 $1,500,000 $2,700,000. 2016 94,620 $13,882 March 31, 2020) |
Note 4 - Leases
Note 4 - Leases | 3 Months Ended |
Mar. 31, 2020 | |
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 Hobro, Aarhus and Copenhagen, Denmark; and White Bear Lake, Minnesota. Supplemental balance sheet information related to leases as of March 31, 2020 December 31, 2019 March 31, 20 20 December 31, 201 9 Operating leases Operating lease right-of-use $ 4,876,698 $ 5,053,614 Operating lease liabilities - current $ 985,360 $ 999,685 Operating lease liabilities – long-term 3,994,609 4,141,855 Total operating lease liabilities $ 4,979,969 $ 5,141,540 Finance leases Property and equipment, at cost $ 1,334,310 $ 1,362,272 Accumulated depreciation (1,141,792 ) (1,156,145 ) Property and equipment, net $ 192,518 $ 206,127 Finance lease liabilities - current $ 34,403 $ 34,772 Finance lease liabilities – long-term 160,006 172,273 Total finance lease liabilities $ 194,409 $ 207,045 Weighted average remaining lease term: Operating leases 10.3 10.2 Finance leases 5.2 5.5 Weighted average discount rate: Operating leases 6.3 % 6.4 Finance leases 3.9 % 3.9 % Maturities of lease liabilities at March 31, 2020 Operating lease Finance lease April 2020 – March 2021 $ 1,019,750 $ 41,422 April 2021 – March 2022 819,998 41,422 April 2022 – March 2023 763,059 38,370 April 2023 – March 2024 733,877 35,358 April 2024 – March 2025 481,982 35,623 Thereafter 2,889,807 23,699 Total payment under lease agreements 6,708,473 215,894 Less imputed interest (1,728,504 ) (21,485 ) Total lease liability $ 4,979,969 $ 194,409 |
Note 5 - Agreements and Commitm
Note 5 - Agreements and Commitments | 3 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 5 - AGREEMENTS AND COMMITMENTS 401 401 three March 31, 2020 2019, $3,949 $2,621, Contingencies -- may On November 20, 2018 448,500 $68,800 2016 not No March 31, 2020 not On February 27, 2019, 543,905 $83,400 2017. 2018. no March 31, 2020. 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 third 2019 four 7% 3% January 1, 2019 Changes in the Company's current and long-term warranty obligations included in accrued expenses on the balance sheet, as of March 31, 2020 December 31, 2019 March 31, 2020 December 31, 2019 Balance at December 31 $ 813,288 $ 432,225 Warranty costs charged to cost of goods sold 226,079 707,079 Utilization charges against reserve (51,643 ) (315,556 ) Release of accrual related to expired warranties - - Foreign currency effect (17,679 ) (10,460 ) Balance at March 31 $ 970,045 $ 813,288 Purchase obligation not $3.8 no |
Note 6 - Earnings Per Share
Note 6 - Earnings Per Share | 3 Months Ended |
Mar. 31, 2020 | |
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 weighted average number of shares of potential dilutive common stock for the three March 31, 2020 2019: For the Three Months Ended March 31, 2020 2019 Net Income attributable to LiqTech International Inc. $ 303,499 $ 34,244 Weighted average number of common shares used in basic earnings per share 20,554,524 18,267,068 Effect of dilutive securities, stock options, RSU’s, and warrants 156,511 878,807 Weighted average number of common shares and potential dilutive common shares outstanding used in dilutive earnings per share 20,711,035 19,145,875 For the three March 31, 2020, 25,000 $2.96 For the three March 31, 2019, 25,000 $2.96 100,000 $6.60 |
Note 7 - Stockholders' Equity
Note 7 - Stockholders' Equity | 3 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE 7 Common Stock – 25,000,000 $0.001 March 31, 2020 2019, 20,555,880 18,302,880 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 March 31, 2020 2019 0 Stock Issuance Since January 1, 2020, On January 15, 2020, 8,212 $45,000 For the three March 31, 2020 2019, $141,222 $128,444, Stock Options In August 2015, March 31, 2020, 25,000 The Company recognizes compensation costs for stock option awards to employees based on the 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 options of $0 three March 31, 2020 2019. March 31, 2020, $0 A summary of the status of the options outstanding under the Company’s stock option plans on March 31, 2020 Options Outstanding Options Exercisable Exercise Number Weighted Life (years) Weighted Number Weighted $ 2.96 25,000 0.37 $ 2.96 25,000 $ 2.96 Total 25,000 0.37 $ 2.96 25,000 $ 2.96 A summary of the status of the options on March 31, 2020 March 31, 2020 Shares Weighted Average Weighted Outstanding at beginning of period 25,000 $ 2.96 0.62 $ - Granted - - - - Exercised - - - - Forfeited - - - - Expired - - - - Outstanding at end of period 25,000 $ 2.96 0.37 $ - Vested and expected to vest 25,000 $ 2.96 0.37 $ - Exercisable end of period 25,000 $ 2.96 0.37 $ - |
Note 8 - Significant Customers
Note 8 - Significant Customers / Concentration / Disaggregated Revenue | 3 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | NOTE 8 The following table presents customers accounting for 10% For the t hree months ended March 31, 2020 March 31, 2019 Customer A 35 % 13 % Customer B 12 % 20 % Customer C 12 % * Customer D 11 % * Customer E * 19 % * Zero or less than 10% The following table presents customers accounting for 10% March 31, 2020 December 31, 2019 Customer A 40 % 39 % Customer C 16 % 15 % Customer B 11 % * Customer E * * * Zero or less than 10% As of March 31, 2020, 95% 5% December 31, 2019, 91% 9% |
Note 9 - Subsequent Event
Note 9 - Subsequent Event | 3 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | NOTE 9 - SUBSEQUENT EVENTS The Company’s management reviewed material events through May 11, 2020. In March 2020, 19” March, 2 While we are unable to accurately predict the full impact that COVID- 19 not first 2020. 12 19 not 2020. While we anticipate that the foregoing measures are temporary, we cannot predict the specific duration for which these precautionary measures will stay in effect, and our business may may |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
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 applications and diesel particulate air filters in the 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”), incorporated on September 1, 2009, BS Plastic A/S, a Danish Corporation (“BS Plastic”), acquired on September 1, 2019, LiqTech Ceramics A/S, a Danish corporation (“LiqTech Ceramics”), incorporated on December 20, 2019 LiqTech Germany (“LiqTech Germany”), a 100% December 9, 2011. 2020. LiqTech PTE Ltd (“LiqTech Sing”), a 95% January 19, 2012. 2020. |
Consolidation, Policy [Policy Text Block] | Consolidation -- |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Functional Currency / Foreign currency translation -- three March 31, 2020 2019. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash, Cash Equivalents and Restricted Cash -- three March 31, 2020 December 31, 2019, $2,711,273 $2,714,173, no March 31, 2020 December 31, 2019. |
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 period ended March 31, 2020 December 31, 2019 March 31, 20 20 December 31, 201 9 Allowance for doubtful accounts at the beginning of the period $ 612,434 $ 971,772 Bad debt expense 327 25,044 Receivables written off during the periods (327 ) (362,244 ) Effect of currency translation (12,571 ) (22,138 ) Allowance for doubtful accounts at the end of the period $ 599,863 $ 612,434 |
Inventory, Policy [Policy Text Block] | Inventory – first first For inventory produced, standard costs that approximate actual cost on the FIFO method are used to value inventory. Standard costs are reviewed at least annually by management, or more often in the event that circumstances indicate a change in cost has occurred. Work in process and finished goods include material, labor and production overhead costs. The company adjusts the value of its inventory to the extent that management determines that the cost cannot be recovered due to obsolescence or other factors. Inventory valuation adjustments for excess and obsolete inventory are calculated based on current inventory levels, movement, expected useful lives, and estimated future demand of the products and spare parts. |
Receivable [Policy Text Block] | Unbilled receivables – no 12 |
Lessee, Leases [Policy Text Block] | Leases -- February 2016, No. 2016 02, 842” On January 1, 2019, 842 not 12 not not may 842 not |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment -- three ten |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Goodwill and Intangible Assets -- not Acquired intangible assets with determinable useful lives are amortized on a straight-line or accelerated basis over the estimated periods benefited, ranging from one 10 five The Company evaluates the recoverability of long-lived assets by comparing the carrying amount of an asset to estimated future net undiscounted cash flows generated by the asset. If such assets are considered to be impaired, the impairment recognized is measured as the amount by which the carrying amount of the assets exceeds the fair value of the assets. The evaluation of recoverability involves estimates of future operating cash flows based upon certain forecasted assumptions, including, but not Goodwill is not |
Revenue from Contract with Customer [Policy Text Block] | Revenue Recognition -- January 1, 2018, 606, 2015, 2016 2017 January 1, 2018. not The Company sells products throughout the world; sales by geographical region are as follows for the three March 31, 2020 2019: For the Three months e nded March 31 20 20 201 9 United States and Canada $ 126,482 $ 113,059 Australia 42,255 62,113 South America 10,896 319,528 Asia 2,033,288 1,239,113 Europe 8,068,923 5,687,385 $ 10,281,844 $ 7,421,198 The Company’s sales by product line are as follows for the three March 31, 2020 2019: For the Three months e nded March 31 20 20 201 9 Ceramic diesel particulate $ 1,560,062 $ 2,243,268 Liquid filters and systems 7,980,287 5,040,333 Plastics 581,411 - Development projects 160,084 137,597 $ 10,281,844 $ 7,421,198 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 or DPF transfers to the customer or when services are rendered by the Company. 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 warranties and maintenance services. For the sale of aftermarket parts, the Company transfers control and recognizes revenue when parts are shipped to the customer. 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. 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. Contract assets are the Company’s rights to consideration in exchange for goods or services and is recognized when a performance obligation has been satisfied but has not third second The roll-forward of Contract Assets / Liabilities for the three March 31, 2020 December 31, 2019 March 31, 2020 December 31, 2019 Cost incurred $ 3,795,520 $ 3,960,199 Unbilled project deliveries 2,386,541 1,971,106 VAT 626,621 862,368 Other receivables 97,082 58,397 Prepayments (1,964,914 ) (1,732,231 ) Deferred Revenue (1,155,405 ) (876,286 ) $ 3,785,445 $ 4,243,553 Distributed as follows: Contract Assets $ 5,137,111 $ 5,664,929 Contract Liabilities (1,351,666 ) (1,421,376 ) $ 3,785,445 $ 4,243,553 |
Advertising Cost [Policy Text Block] | Advertising Cost -- $25,237 $22,592 three March 31, 2020 2019, |
Research and Development Expense, Policy [Policy Text Block] | Research and Development Cost -- three March 31, 2020 2019 $310,954 $203,172, |
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 -- 718, $141,222 $128,444 three March 31, 2020 2019, |
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, other receivables, prepaid expenses, accounts payable and accrued expenses approximates their recorded values due to their short-term maturities. The following table sets forth the liabilities at March 31, 2020, Fair value at reporting date using: March 31, 2020 Quoted prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable inputs (Level 3) Contingent Earn-out Liability $ 880,308 $ - $ - $ 880,308 The roll forward of the Earn-out liability is as follows: Balance at December 31, 2019 $ 898,755 Foreign currency effect (18,447 ) Balance at March 31, 2020 $ 880,308 |
Use of Estimates, Policy [Policy Text Block] | Accounting Estimates -- |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements -- August 2018, No. 2018 13, 820 December 15, 2019, In November 2016, No. 2016 18, March 31, 2020 $2,711,273 $3,587,769 $6,299,042 December 31, 2019 $2,714,173 $7,069,759 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) | 3 Months Ended |
Mar. 31, 2020 | |
Notes Tables | |
Financing Receivable, Allowance for Credit Loss [Table Text Block] | March 31, 20 20 December 31, 201 9 Allowance for doubtful accounts at the beginning of the period $ 612,434 $ 971,772 Bad debt expense 327 25,044 Receivables written off during the periods (327 ) (362,244 ) Effect of currency translation (12,571 ) (22,138 ) Allowance for doubtful accounts at the end of the period $ 599,863 $ 612,434 |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | For the Three months e nded March 31 20 20 201 9 United States and Canada $ 126,482 $ 113,059 Australia 42,255 62,113 South America 10,896 319,528 Asia 2,033,288 1,239,113 Europe 8,068,923 5,687,385 $ 10,281,844 $ 7,421,198 |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | For the Three months e nded March 31 20 20 201 9 Ceramic diesel particulate $ 1,560,062 $ 2,243,268 Liquid filters and systems 7,980,287 5,040,333 Plastics 581,411 - Development projects 160,084 137,597 $ 10,281,844 $ 7,421,198 |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Table Text Block] | March 31, 2020 December 31, 2019 Cost incurred $ 3,795,520 $ 3,960,199 Unbilled project deliveries 2,386,541 1,971,106 VAT 626,621 862,368 Other receivables 97,082 58,397 Prepayments (1,964,914 ) (1,732,231 ) Deferred Revenue (1,155,405 ) (876,286 ) $ 3,785,445 $ 4,243,553 Distributed as follows: Contract Assets $ 5,137,111 $ 5,664,929 Contract Liabilities (1,351,666 ) (1,421,376 ) $ 3,785,445 $ 4,243,553 |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | Fair value at reporting date using: March 31, 2020 Quoted prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable inputs (Level 3) Contingent Earn-out Liability $ 880,308 $ - $ - $ 880,308 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | Balance at December 31, 2019 $ 898,755 Foreign currency effect (18,447 ) Balance at March 31, 2020 $ 880,308 |
Note 2 - Inventory (Tables)
Note 2 - Inventory (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | 20 20 201 9 Furnace parts and supplies $ 925,300 $ 621,991 Raw materials 1,967,234 2,125,921 Work in process 1,877,131 1,624,499 Finished goods and filtration systems 1,209,729 1,492,135 Reserve for obsolescence (654,895 ) (665,308 ) Net Inventory $ 5,324,499 $ 5,199,238 |
Note 4 - Leases (Tables)
Note 4 - Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Notes Tables | |
Lessee, Operating and Finance Lease, Assets and Liabilities [Table Text Block] | March 31, 20 20 December 31, 201 9 Operating leases Operating lease right-of-use $ 4,876,698 $ 5,053,614 Operating lease liabilities - current $ 985,360 $ 999,685 Operating lease liabilities – long-term 3,994,609 4,141,855 Total operating lease liabilities $ 4,979,969 $ 5,141,540 Finance leases Property and equipment, at cost $ 1,334,310 $ 1,362,272 Accumulated depreciation (1,141,792 ) (1,156,145 ) Property and equipment, net $ 192,518 $ 206,127 Finance lease liabilities - current $ 34,403 $ 34,772 Finance lease liabilities – long-term 160,006 172,273 Total finance lease liabilities $ 194,409 $ 207,045 Weighted average remaining lease term: Operating leases 10.3 10.2 Finance leases 5.2 5.5 Weighted average discount rate: Operating leases 6.3 % 6.4 Finance leases 3.9 % 3.9 % |
Maturity of Operating and Finance Lease Liabilities [Table Text Block] | Operating lease Finance lease April 2020 – March 2021 $ 1,019,750 $ 41,422 April 2021 – March 2022 819,998 41,422 April 2022 – March 2023 763,059 38,370 April 2023 – March 2024 733,877 35,358 April 2024 – March 2025 481,982 35,623 Thereafter 2,889,807 23,699 Total payment under lease agreements 6,708,473 215,894 Less imputed interest (1,728,504 ) (21,485 ) Total lease liability $ 4,979,969 $ 194,409 |
Note 5 - Agreements and Commi_2
Note 5 - Agreements and Commitments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Notes Tables | |
Schedule of Product Warranty Liability [Table Text Block] | March 31, 2020 December 31, 2019 Balance at December 31 $ 813,288 $ 432,225 Warranty costs charged to cost of goods sold 226,079 707,079 Utilization charges against reserve (51,643 ) (315,556 ) Release of accrual related to expired warranties - - Foreign currency effect (17,679 ) (10,460 ) Balance at March 31 $ 970,045 $ 813,288 |
Note 6 - Earnings Per Share (Ta
Note 6 - Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Notes Tables | |
Schedule of Weighted Average Number of Shares [Table Text Block] | For the Three Months Ended March 31, 2020 2019 Net Income attributable to LiqTech International Inc. $ 303,499 $ 34,244 Weighted average number of common shares used in basic earnings per share 20,554,524 18,267,068 Effect of dilutive securities, stock options, RSU’s, and warrants 156,511 878,807 Weighted average number of common shares and potential dilutive common shares outstanding used in dilutive earnings per share 20,711,035 19,145,875 |
Note 7 - Stockholders' Equity (
Note 7 - Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Notes Tables | |
Share-based Payment Arrangement, Option, Exercise Price Range [Table Text Block] | Options Outstanding Options Exercisable Exercise Number Weighted Life (years) Weighted Number Weighted $ 2.96 25,000 0.37 $ 2.96 25,000 $ 2.96 Total 25,000 0.37 $ 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] | March 31, 2020 Shares Weighted Average Weighted Outstanding at beginning of period 25,000 $ 2.96 0.62 $ - Granted - - - - Exercised - - - - Forfeited - - - - Expired - - - - Outstanding at end of period 25,000 $ 2.96 0.37 $ - Vested and expected to vest 25,000 $ 2.96 0.37 $ - Exercisable end of period 25,000 $ 2.96 0.37 $ - |
Note 8 - Significant Customer_2
Note 8 - Significant Customers / Concentration / Disaggregated Revenue (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Notes Tables | |
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | For the t hree months ended March 31, 2020 March 31, 2019 Customer A 35 % 13 % Customer B 12 % 20 % Customer C 12 % * Customer D 11 % * Customer E * 19 % March 31, 2020 December 31, 2019 Customer A 40 % 39 % Customer C 16 % 15 % Customer B 11 % * Customer E * * |
Note 1 - Summary of Significa_3
Note 1 - Summary of Significant Accounting Policies (Details Textual) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Restricted Cash and Cash Equivalents, Current, Total | $ 2,711,273 | $ 2,714,173 | |
Cash, Uninsured Amount | 0 | 0 | |
Advertising Expense | 25,237 | $ 22,592 | |
Research and Development Expense, Total | 310,954 | 203,172 | |
Share-based Payment Arrangement, Expense | 141,222 | $ 128,444 | |
Cash and Cash Equivalents, at Carrying Value, Ending Balance | 3,587,769 | $ 7,069,759 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Ending Balance | $ 6,299,042 | ||
Customer Relationships [Member] | |||
Finite-Lived Intangible Asset, Useful Life (Year) | 5 years | ||
Minimum [Member] | |||
Property, Plant and Equipment, Useful Life (Year) | 3 years | ||
Finite-Lived Intangible Asset, Useful Life (Year) | 1 year | ||
Maximum [Member] | |||
Property, Plant and Equipment, Useful Life (Year) | 10 years | ||
Finite-Lived Intangible Asset, Useful Life (Year) | 10 years | ||
LiqTech USA [Member] | LiqTech International DK [Member] | |||
Percentage of Subsidiary Owned | 100.00% | ||
LiqTech USA [Member] | LiqTech NA [Member] | |||
Percentage of Subsidiary Owned | 100.00% | ||
LiqTech International DK [Member] | LiqTech Germany [Member] | |||
Percentage of Subsidiary Owned | 100.00% | ||
LiqTech International DK [Member] | LiqTech PTE [Member] | |||
Percentage of Subsidiary Owned | 95.00% | ||
LiqTech USA [Member] | |||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% |
Note 1 - Summary of Significa_4
Note 1 - Summary of Significant Accounting Policies - Allowance for Doubtful Accounts (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Allowance for doubtful accounts | $ 612,434 | $ 971,772 |
Bad debt expense | 327 | 25,044 |
Receivables written off during the periods | (327) | (362,244) |
Effect of currency translation | (12,571) | (22,138) |
Allowance for doubtful accounts | $ 599,863 | $ 612,434 |
Note 1 - Summary of Significa_5
Note 1 - Summary of Significant Accounting Policies - Net Sales by Geographical Region (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Net Sales | $ 10,281,844 | $ 7,421,198 |
Reportable Geographical Components [Member] | US And Canada [Member] | ||
Net Sales | 126,482 | 113,059 |
Reportable Geographical Components [Member] | AUSTRALIA | ||
Net Sales | 42,255 | 62,113 |
Reportable Geographical Components [Member] | South America [Member] | ||
Net Sales | 10,896 | 319,528 |
Reportable Geographical Components [Member] | Asia [Member] | ||
Net Sales | 2,033,288 | 1,239,113 |
Reportable Geographical Components [Member] | Europe [Member] | ||
Net Sales | $ 8,068,923 | $ 5,687,385 |
Note 1 - Summary of Significa_6
Note 1 - Summary of Significant Accounting Policies - Sales by Product Line (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Net Sales | $ 10,281,844 | $ 7,421,198 |
Ceramic Diesel Particulate [Member] | ||
Net Sales | 1,560,062 | 2,243,268 |
Liquid Filters [Member] | ||
Net Sales | 7,980,287 | 5,040,333 |
Plastic Products [Member] | ||
Net Sales | 581,411 | |
Development Projects [Member] | ||
Net Sales | $ 160,084 | $ 137,597 |
Note 1 - Summary of Significa_7
Note 1 - Summary of Significant Accounting Policies - Contract Assets and Liabilities (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cost incurred | $ 3,795,520 | $ 3,960,199 |
Unbilled project deliveries | 2,386,541 | 1,971,106 |
VAT | 626,621 | 862,368 |
Other receivables | 97,082 | 58,397 |
Prepayments | (1,964,914) | (1,732,231) |
Deferred Revenue | (1,155,405) | (876,286) |
Contract with Customer, Asset (Liability), Net | 3,785,445 | 4,243,553 |
Contract Assets | 5,137,111 | 5,664,929 |
Contract Liabilities | (1,351,666) | (1,421,376) |
Contract with Customer, Asset (Liability), Net | $ 3,785,445 | $ 4,243,553 |
Note 1 - Summary of Significa_8
Note 1 - Summary of Significant Accounting Policies - Recurring Fair Value Measurements (Details) - Fair Value, Recurring [Member] | Mar. 31, 2020USD ($) |
Contingent Earn-out Liability | $ 880,308 |
Fair Value, Inputs, Level 1 [Member] | |
Contingent Earn-out Liability | |
Fair Value, Inputs, Level 2 [Member] | |
Contingent Earn-out Liability | |
Fair Value, Inputs, Level 3 [Member] | |
Contingent Earn-out Liability | $ 880,308 |
Note 1 - Summary of Significa_9
Note 1 - Summary of Significant Accounting Policies - Liabilities Measured at Fair Value (Details) | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Balance | $ 898,755 |
Foreign currency effect | (18,447) |
Balance | $ 880,308 |
Note 2 - Inventory - Summary of
Note 2 - Inventory - Summary of Inventory (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Furnace parts and supplies | $ 925,300 | $ 621,991 |
Raw materials | 1,967,234 | 2,125,921 |
Work in process | 1,877,131 | 1,624,499 |
Finished goods and filtration systems | 1,209,729 | 1,492,135 |
Reserve for obsolescence | (654,895) | (665,308) |
Net Inventory | $ 5,324,499 | $ 5,199,238 |
Note 3 - Lines of Credit (Detai
Note 3 - Lines of Credit (Details Textual) - Mar. 31, 2020 | USD ($) | DKK (kr) |
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,500,000 | kr 10,000,000 |
Security Deposit | 2,700,000 | |
Guarantor Obligations, Current Carrying Value | $ 13,882 | kr 94,620 |
Note 4 - Leases - Balance Sheet
Note 4 - Leases - Balance Sheet Information (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Operating lease right-of-use | $ 4,876,698 | $ 5,053,614 |
Operating lease liabilities - current | 985,360 | 999,685 |
Operating lease liabilities – long-term | 3,994,609 | 4,141,855 |
Total lease liability | 4,979,969 | 5,141,540 |
Property and equipment, at cost | 1,334,310 | 1,362,272 |
Accumulated depreciation | (1,141,792) | (1,156,145) |
Property and equipment, net | 192,518 | 206,127 |
Finance lease liabilities - current | 34,403 | 34,772 |
Finance lease liabilities – long-term | 160,006 | 172,273 |
Total lease liability | $ 194,409 | $ 207,045 |
Operating leases (Year) | 10 years 109 days | 10 years 73 days |
Finance leases (Year) | 5 years 73 days | 5 years 182 days |
Operating leases | 6.30% | 6.40% |
Finance leases | 3.90% | 3.90% |
Note 4 - Leases - Maturities of
Note 4 - Leases - Maturities of Lease Liabilities (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
April 2020 – March 2021 | $ 1,019,750 | |
April 2020 – March 2021 | 41,422 | |
April 2021 – March 2022 | 819,998 | |
April 2021 – March 2022 | 41,422 | |
April 2022 – March 2023 | 763,059 | |
April 2022 – March 2023 | 38,370 | |
April 2023 – March 2024 | 733,877 | |
April 2023 – March 2024 | 35,358 | |
April 2024 – March 2025 | 481,982 | |
April 2024 – March 2025 | 35,623 | |
Thereafter | 2,889,807 | |
Thereafter | 23,699 | |
Total payment under lease agreements | 6,708,473 | |
Total payment under lease agreements | 215,894 | |
Less imputed interest | (1,728,504) | |
Less imputed interest | (21,485) | |
Total lease liability | 4,979,969 | $ 5,141,540 |
Total lease liability | $ 194,409 | $ 207,045 |
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) | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018 |
Defined Contribution Plan, Cost | $ 3,949 | $ 2,621 | |||||
Warranty Accrual, Percent | 3.00% | 7.00% | |||||
Purchase Obligation, Total | $ 3,800,000 | ||||||
Minimum [Member] | |||||||
Standard Product Warranty, Term (Year) | 1 year | ||||||
Maximum [Member] | |||||||
Standard Product Warranty, Term (Year) | 3 years | ||||||
Extended Product Warranty, Term (Year) | 4 years | ||||||
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 - Changes in Warranty Obligations (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Balance | $ 813,288 | $ 432,225 |
Warranty costs charged to cost of goods sold | 226,079 | 707,079 |
Utilization charges against reserve | (51,643) | (315,556) |
Release of accrual related to expired warranties | ||
Foreign currency effect | (17,679) | (10,460) |
Balance | $ 970,045 | $ 813,288 |
Note 6 - Earnings Per Share (De
Note 6 - Earnings Per Share (Details Textual) - $ / shares | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Ending Balance (in dollars per share) | $ 2.96 | $ 2.96 | |
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ 6.60 | ||
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Ending Balance (in dollars per share) | $ 2.96 | $ 2.96 | |
Share-based Payment Arrangement, Option [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 25,000 | 25,000 | |
Warrant [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 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 | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Net Income attributable to LiqTech International Inc. | $ 303,499 | $ 34,244 |
Weighted average number of common shares used in basic earnings per share (in shares) | 20,554,524 | 18,267,068 |
Effect of dilutive securities, stock options, RSU’s, and warrants (in shares) | 156,511 | 878,807 |
Weighted average number of common shares and potential dilutive common shares outstanding used in dilutive earnings per share (in shares) | 20,711,035 | 19,145,875 |
Note 7 - Stockholders' Equity_2
Note 7 - Stockholders' Equity (Details Textual) - USD ($) | Jan. 15, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 |
Common Stock, Shares Authorized (in shares) | 25,000,000 | 25,000,000 | ||
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ 0.001 | $ 0.001 | ||
Common Stock, Shares, Issued, Total (in shares) | 20,555,880 | 18,302,880 | 20,547,668 | |
Preferred Stock, Shares Authorized (in shares) | 2,500,000 | 2,500,000 | ||
Preferred Stock, Shares Issued, Total (in shares) | 0 | 0 | ||
Stock Issued During Period, Value, Issued for Services | $ 45,000 | $ 112,500 | ||
Share-based Payment Arrangement, Expense | $ 141,222 | $ 128,444 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance (in shares) | 25,000 | 25,000 | ||
Share-based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount | $ 0 | |||
Common Stock, Shares, Outstanding, Ending Balance (in shares) | 20,555,880 | 18,302,880 | 20,547,668 | |
Preferred Stock, Shares Outstanding, Ending Balance (in shares) | 0 | 0 | ||
The 2011 Stock Options Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance (in shares) | 25,000 | |||
Stock Awards Other than Options [Member] | ||||
Share-based Payment Arrangement, Expense | $ 141,222 | $ 128,444 | ||
Share-based Payment Arrangement, Option [Member] | The 2011 Stock Options Plan [Member] | ||||
Share-based Payment Arrangement, Expense | $ 0 | $ 0 | ||
Director [Member] | ||||
Stock Issued During Period, Shares, Issued for Services (in shares) | 8,212 | |||
Stock Issued During Period, Value, Issued for Services | $ 45,000 | |||
Convertible Preferred Stock [Member] | ||||
Preferred Stock, Shares Issued, Total (in shares) | 0 | 0 | ||
Preferred Stock, Shares Outstanding, Ending Balance (in shares) | 0 | 0 |
Note 7 - Stockholders' Equity -
Note 7 - Stockholders' Equity - Options Outstanding by Exercise Price (Details) | 3 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Options outstanding (in shares) | shares | 25,000 |
Options outstanding, weighted average remaining contractual life (Year) | 135 days |
Options outstanding, weighted average exercise price (in dollars per share) | $ 2.96 |
Options exercisable (in shares) | shares | 25,000 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 2.96 |
Price Range 1 [Member] | |
Exercise prices of options (in dollars per share) | $ 2.96 |
Options outstanding (in shares) | shares | 25,000 |
Options outstanding, weighted average remaining contractual life (Year) | 135 days |
Options outstanding, weighted average exercise price (in dollars per share) | $ 2.96 |
Options exercisable (in shares) | shares | 25,000 |
Options 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 ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Outstanding, shares (in shares) | 25,000 | |
Outstanding, weighted average exercise price (in dollars per share) | $ 2.96 | |
Outstanding, average remaining life (Year) | 135 days | 226 days |
Granted, shares (in shares) | ||
Granted, weighted average exercise price (in dollars per share) | ||
Exercised, shares (in shares) | ||
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 | 25,000 |
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) | 135 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) | 135 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] | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
DENMARK | ||
Concentration Risk, Percentage | 95.00% | 91.00% |
UNITED STATES | ||
Concentration Risk, Percentage | 5.00% | 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 | ||||
Mar. 31, 2020 | Mar. 31, 2019 | ||||
Revenue Benchmark [Member] | Customer A [Member] | |||||
Concentration Risk, Percentage | 35.00% | 13.00% | [1] | ||
Revenue Benchmark [Member] | Customer B [Member] | |||||
Concentration Risk, Percentage | 12.00% | 20.00% | |||
Revenue Benchmark [Member] | Customer C [Member] | |||||
Concentration Risk, Percentage | 12.00% | [1] | |||
Revenue Benchmark [Member] | Customer D [Member] | |||||
Concentration Risk, Percentage | 11.00% | [1] | |||
Revenue Benchmark [Member] | Customer E [Member] | |||||
Concentration Risk, Percentage | [1] | 19.00% | |||
Accounts Receivable [Member] | Customer A [Member] | |||||
Concentration Risk, Percentage | 40.00% | 39.00% | |||
Accounts Receivable [Member] | Customer C [Member] | |||||
Concentration Risk, Percentage | 16.00% | 15.00% | |||
Accounts Receivable [Member] | Customer D [Member] | |||||
Concentration Risk, Percentage | 11.00% | [1] | |||
Accounts Receivable [Member] | Customer E [Member] | |||||
Concentration Risk, Percentage | [1] | ||||
[1] | Zero or less than 10% |