Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | May 12, 2021 | |
Document Information [Line Items] | ||
Entity Central Index Key | 0001307579 | |
Entity Registrant Name | LIQTECH INTERNATIONAL INC | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2021 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-36210 | |
Entity Incorporation, State or Country Code | NV | |
Entity Tax Identification Number | 20-1431677 | |
Entity Address, Address Line One | Industriparken 22C, DK 2750 | |
Entity Address, City or Town | Ballerup | |
Entity Address, Country | DK | |
City Area Code | 45 | |
Local Phone Number | 3131 5941 | |
Title of 12(b) Security | Common Stock, $0.001 par value | |
Trading Symbol | LIQT | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 21,777,373 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Current Assets: | ||
Cash, Cash equivalents and Restricted cash | $ 10,657,307 | $ 13,264,449 |
Accounts receivable, net of allowance for doubtful accounts of $522,923 and $498,044 at March 31, 2021 and December 31, 2020, respectively | 2,348,049 | 3,129,109 |
Inventories, net of allowance for excess and obsolete inventory of $598,552 and $723,949 at March 31, 2021 and December 31, 2020, respectively | 5,408,698 | 5,522,038 |
Contract assets | 1,820,157 | 2,708,136 |
Prepaid expenses and other current assets | 920,860 | 1,031,194 |
Total Current Assets | 21,155,071 | 25,654,926 |
Long-Term Assets: | ||
Property and Equipment, net of accumulated depreciation of $8,837,263 and $8,908,145 at March 31, 2021 and December 31, 2020, respectively | 9,871,522 | 10,321,511 |
Operating lease right-of-use assets | 4,527,952 | 4,947,734 |
Deposits and other assets | 523,789 | 545,673 |
Intangible assets, net of accumulated amortization of $285,364 and $269,441 at March 31, 2021 and December 31, 2020, respectively | 430,402 | 480,060 |
Goodwill | 248,520 | 260,233 |
Total Long-Term Assets | 15,602,185 | 16,555,211 |
Total Assets | 36,757,256 | 42,210,137 |
Current Liabilities: | ||
Accounts payable | 1,867,125 | 2,332,151 |
Accrued expenses | 4,222,873 | 4,909,531 |
Current portion of finance lease obligations | 379,817 | 394,839 |
Current portion of operating lease liabilities | 939,850 | 1,026,235 |
Contract liabilities | 1,237,614 | 1,152,178 |
Total Current Liabilities | 8,647,279 | 9,814,934 |
Deferred tax liability | 275,407 | 305,167 |
Finance lease obligation, net of current portion | 2,876,412 | 3,112,496 |
Operating lease liability, net of current portion | 3,808,405 | 4,159,225 |
Total Long-term Liabilities | 6,960,224 | 7,576,888 |
Total Liabilities | 15,607,503 | 17,391,822 |
Stockholders' Equity: | ||
Series A Mandatory Convertible Preferred stock; par value $0.001, 2,500,000 shares authorized, 0 shares issued and outstanding at March 31, 2021 and December 31, 2020 | 0 | 0 |
Common stock; par value $0.001, 25,000,000 shares authorized 21,697,373 and 21,655,461 shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively | 21,697 | 21,655 |
Additional paid-in capital | 70,000,044 | 69,897,698 |
Accumulated deficit | (44,514,397) | (42,054,968) |
Accumulated other comprehensive loss | (4,357,591) | (3,046,070) |
Total Stockholders' Equity | 21,149,753 | 24,818,315 |
Total Liabilities and Stockholders' Equity | $ 36,757,256 | $ 42,210,137 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Accounts receivable, allowance for doubtful accounts | $ 522,923 | $ 498,044 |
Inventories, allowance for excess and obsolete inventory | 598,552 | 723,949 |
Property and equipment, accumulated depreciation | 8,837,263 | 8,908,145 |
Intangible assets, accumulated depreciations | $ 285,364 | $ 269,441 |
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) | 21,697,373 | 21,655,461 |
Common stock, shares outstanding (in shares) | 21,697,373 | 21,655,461 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenue | $ 3,997,877 | $ 10,281,844 |
Cost of Goods Sold | 3,883,262 | 7,642,768 |
Gross Profit | 114,615 | 2,639,076 |
Operating Expenses: | ||
Selling expenses | 1,009,498 | 676,800 |
General and administrative expenses | 1,474,670 | 1,470,393 |
Research and development expenses | 437,607 | 310,954 |
Total Operating Expense | 2,921,775 | 2,458,147 |
Income (Loss) from Operations | (2,807,160) | 180,929 |
Other Income (Expense) | ||
Interest and other income | 0 | 4,490 |
Interest expense | (40,419) | (104,856) |
Gain (Loss) on currency transactions | 371,684 | 207,627 |
Total Other Income | 331,265 | 107,261 |
Income (Loss) Before Income Taxes | (2,475,895) | 288,190 |
Income Tax Benefit | (16,466) | (15,309) |
Net Income (Loss) | $ (2,459,429) | $ 303,499 |
Basic Income (Loss) Per Share (in dollars per share) | $ (0.11) | $ 0.01 |
Diluted Income (Loss) Per Share (in dollars per share) | $ (0.11) | $ 0.01 |
Basic Weighted Average Common Shares Outstanding (in shares) | 21,677,186 | 20,554,524 |
Diluted Weighted Average Common Shares Outstanding (in shares) | 21,677,186 | 20,711,035 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Net Income (Loss) | $ (2,459,429) | $ 303,499 |
Other Comprehensive Loss - Currency Translation, Net | (1,311,521) | (495,959) |
Total Comprehensive Loss | $ (3,770,950) | $ (192,460) |
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, 2019 | 20,547,668 | ||||
BALANCE at Dec. 31, 2019 | $ 20,548 | $ 61,398,150 | $ (32,246,608) | $ (6,166,559) | $ 23,005,531 |
Common stock issued in settlement of RSUs (in shares) | 8,212 | ||||
Common stock issued in settlement of RSUs | $ 8 | 44,992 | 45,000 | ||
Stock-based compensation | 96,222 | 96,222 | |||
Currency translation, net | (495,959) | (495,959) | |||
Net Income (Loss) | 303,499 | 303,499 | |||
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 |
BALANCE (in shares) at Dec. 31, 2020 | 21,655,461 | ||||
BALANCE at Dec. 31, 2020 | $ 21,655 | 69,897,698 | (42,054,968) | (3,046,070) | 24,818,315 |
Common stock issued in settlement of RSUs (in shares) | 41,912 | ||||
Common stock issued in settlement of RSUs | $ 42 | (42) | 0 | ||
Stock-based compensation | 102,388 | 102,388 | |||
Currency translation, net | (1,311,521) | (1,311,521) | |||
Net Income (Loss) | (2,459,429) | (2,459,429) | |||
BALANCE (in shares) at Mar. 31, 2021 | 21,697,373 | ||||
BALANCE at Mar. 31, 2021 | $ 21,697 | $ 70,000,044 | $ (44,514,397) | $ (4,357,591) | $ 21,149,753 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash Flows from Operating Activities: | ||
Net Income (Loss) | $ (2,459,429) | $ 303,499 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operations: | ||
Depreciation and amortization | 631,217 | 534,021 |
Stock-based compensation | 102,388 | 141,222 |
Change in deferred tax asset / liability | (16,466) | (15,309) |
Changes in assets and liabilities: | ||
Accounts receivable | 657,926 | (1,769,341) |
Inventory | (138,918) | (125,261) |
Contract assets | 772,940 | 527,818 |
Prepaid expenses and other current assets | (261,232) | (255,908) |
Accounts payable | (372,530) | (1,112,956) |
Accrued expenses | (492,028) | 67,435 |
Operating lease liabilities | (205,056) | (183,180) |
Contract liabilities | 141,066 | (69,710) |
Income taxes benefits | 336,232 | 0 |
Total Adjustments | 1,155,539 | (2,261,169) |
Net Cash used in Operating Activities | (1,303,890) | (1,957,670) |
Cash Flows from Investing Activities: | ||
Purchase of property and equipment | (414,875) | (1,064,960) |
Purchase of other intangible assets | 0 | (2,739) |
Net Cash used in Investing Activities | (414,875) | (1,067,699) |
Cash Flows from Financing Activities: | ||
Payments on finance lease obligations | (101,192) | (8,434) |
Net Cash used in Financing Activities | (101,192) | (8,434) |
Loss on Currency Translation | (787,185) | (451,087) |
Net change in Cash, Cash Equivalents and Restricted Cash | (2,607,142) | (3,484,890) |
Cash, Cash Equivalents and Restricted Cash at Beginning of Period | 13,264,449 | 9,783,932 |
Cash, Cash Equivalents and Restricted Cash at End of Period | 10,675,307 | 6,299,042 |
Supplemental Disclosures of Cash Flow Information: | ||
Interest Paid | 37,236 | 16,514 |
Income Taxes | $ 0 | $ 0 |
Note 1 - Summary of Significant
Note 1 - Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
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% owned subsidiary of the Company formed in May 2011. LiqTech Holding A/S (formerly known as LiqTech International A/S), a Danish corporation, incorporated on January 15, 2000 ( LiqTech NA, Inc. (“LiqTech NA”), incorporated in Delaware on July 1, 2005, January 2021, LiqTech Water A/S (formerly known as LiqTech Systems A/S), a Danish Corporation (“LiqTech Water”), incorporated on September 1, 2009, LiqTech Plastics A/S (formerly known as BS Plastic A/S), a Danish Corporation (“LiqTech Plastics”), acquired on September 1, 2019, LiqTech Ceramics A/S, a Danish corporation (“LiqTech Ceramics”), incorporated on December 20, 2019, LiqTech Water Projects A/S, a Danish corporation (“LiqTech Water Projects”), incorporated on July 28, 2020 LiqTech Emission Control A/S, a Danish corporation (“LiqTech Emission Control”), incorporated on March 1, 2021 LiqTech Germany (“LiqTech Germany”), a 100% owned subsidiary of LiqTech Holding, incorporated in Germany on December 9, 2011. LiqTech PTE Ltd (“LiqTech Singapore”), a 95% owned subsidiary of LiqTech Holding, incorporated in Singapore on January 19, 2012. Consolidation -- Functional Currency / Foreign currency translation -- three March 31, 2021 2020. Cash, Cash Equivalents and Restricted Cash -- three March 31, 2021 December 31, 2020, March 31, 2021 December 31, 2020. Accounts Receivable -- The roll-forward of the allowance for doubtful accounts for the period ended March 31, 2021 December 31, 2020 March 31, 2021 December 31, 2020 Allowance for doubtful accounts at the beginning of the period $ 498,044 $ 612,434 Bad debt expense 48,595 320,270 Receivables written off during the periods - (484,265 ) Effect of currency translation (23,716 ) (49,605 ) Allowance for doubtful accounts at the end of the period $ 522,923 $ 498,044 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. Contracts Assets not Contract assets also include unbilled receivables, which usually comprise the last invoice remaining after the delivery of the water treatment unit, where revenue is recognized at the transfer of control based upon signed acceptance of the water treatment unit by the customer. Most commonly this invoice is sent to the customer at commissioning of the product or no 12 Leases -- February 2016, No. 2016 02, 842” On January 1, 2019, 842 not 12 not not may 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 ten 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 value 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, 2021 2020: For the Three months ended March 31, 2021 2020 United States and Canada $ 165,588 $ 126,482 Australia 32,141 42,255 South America - 10,896 Asia 1,157,155 2,033,288 Europe 2,642,993 8,068,923 $ 3,997,877 $ 10,281,844 The Company’s sales by product line are as follows for the three March 31, 2021 2020: For the Three months ended March 31, 2021 2020 Ceramic diesel particulate $ 1,931,064 $ 1,560,062 Liquid filters and systems 1,157,336 7,980,287 Plastics 814,025 581,411 Development projects 95,452 160,084 $ 3,997,877 $ 10,281,844 For membranes, diesel particulate filters and plastic components, revenue is recognized when performance obligations under the terms of a contract with the customer are satisfied, which occurs when control of the product 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 is 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 to receive 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 to the customer based upon sales and delivery conditions specified in the sales contract. This typically occurs upon shipment of the system from the production facility but can also occur upon other agreed delivery terms. In connection with the completion of the system, it is normal procedure to issue a FAT (Factory Acceptance Test) asserting that the customer has accepted the performance of the system as it is being shipped from our 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 sheet 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 sheet as Contract liabilities. Contract assets represent 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, 2021 December 31, 2020 March 31, 2021 December 31, 2020 Cost incurred $ 3,771,411 $ 3,997,161 Unbilled project deliveries 530,982 1,015,977 VAT 256,168 446,608 Other receivables 58,517 75,010 Prepayments (3,183,216 ) (3,112,118 ) Deferred revenue (851,319 ) (866,680 ) $ 582,543 $ 1,555,958 Distributed as follows: Contract assets $ 1,820,157 $ 2,708,136 Contract liabilities (1,237,614 ) (1,152,178 ) $ 582,543 $ 1,555,958 Advertising Cost -- three March 31, 2021 2020, Research and Development Cost -- three March 31, 2021 2020 Income Taxes -- 740 Income/(Loss) Per Share -- 260, not Stock Options and Awards -- 718, three March 31, 2021 2020, Warrant Liability -- May 2020 480, 480” August 12, 2020, August 12, 2020 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 approximate their recorded values due to their short-term maturities. Accounting Estimates -- Recent Accounting Pronouncements -- March 2020, 2020 04, 848 December 31, 2022. On March 9, 2020, 2020 03, December 15, 2019 2020 03 January 1, 2020 no In December 2019, 2019 12, 740 December 15, 2020 January 1, 2021 not Other recent accounting pronouncements issued by the FASB did not not |
Note 2 - Inventory
Note 2 - Inventory | 3 Months Ended |
Mar. 31, 2021 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | NOTE 2 Inventory consisted of the following on March 31, 2021 December 31, 2020: March 31, 2021 December 31, 2020 Furnace parts and supplies $ 447,548 $ 471,622 Raw materials 2,177,424 1,955,713 Work in process 2,104,016 2,394,481 Finished goods and filtration systems 1,278,262 1,424,171 Reserve for obsolescence (598,552 ) (723,949 ) Net Inventory $ 5,408,698 $ 5,522,038 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 - Leases
Note 3 - Leases | 3 Months Ended |
Mar. 31, 2021 | |
Notes to Financial Statements | |
Lessee, Operating and Finance Leases [Text Block] | NOTE 3 - LEASES The Company leases certain vehicles, real property, production equipment 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 as well as in White Bear Lake, Minnesota. The lease in White Bear Lake expired in February 2021, not During the three March 31, 2021, During the three March 31, 2021, Supplemental balance sheet information related to leases as of March 31, 2021 December 31, 2020 March 31, 2021 December 31, 2020 Operating leases Operating lease right-of-use $ 4,527,952 $ 4,947,734 Operating lease liabilities - current $ 939,850 $ 1,026,235 Operating lease liabilities – long-term 3,808,405 4,159,225 Total operating lease liabilities $ 4,748,255 $ 5,185,460 Finance leases Property and equipment, at cost $ 4,602,291 $ 4,819,201 Accumulated depreciation (1,363,829 ) (1,389,488 ) Property and equipment, net $ 3,238,462 $ 3,429,713 Finance lease liabilities - current $ 379,817 $ 394,839 Finance lease liabilities – long-term 2,876,412 3,112,496 Total finance lease liabilities $ 3,256,229 $ 3,507,335 Weighted average remaining lease term: Operating leases 9.9 10.0 Finance leases 6.6 6.9 Weighted average discount rate: Operating leases 6.2 % 6.2 % Finance leases 2.8 % 2.8 % Maturities of lease liabilities at March 31, 2021 Operating lease Finance lease 2021 (remaining 9 months) $ 734,337 $ 350,208 2022 914,122 465,294 2023 812,028 460,429 2024 655,175 461,420 2025 338,303 457,663 Thereafter 2,860,017 1,429,100 Total payment under lease agreements 6,313,982 3,624,114 Less imputed interest (1,565,727 ) (367,885 ) Total lease liability $ 4,748,255 $ 3,256,229 |
Note 4 - Lines of Credit
Note 4 - Lines of Credit | 3 Months Ended |
Mar. 31, 2021 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | NOTE 4 - LINES OF CREDIT In connection with certain orders, we provide the customer a working guarantee, a prepayment guarantee or security bond. For that purpose, we have a guaranteed credit line of DKK10,000,000 2016 March 31, 2021) |
Note 5 - Agreements and Commitm
Note 5 - Agreements and Commitments | 3 Months Ended |
Mar. 31, 2021 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 5 - AGREEMENTS AND COMMITMENTS Agreements none third 401 401 three March 31, 2021 2020, Contingencies -- may On November 20, 2018 2016 not December 2020 2020. January 2021. On February 27, 2019, 2017. 2018. no March 31, 2021. 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. Changes in the Company's current and long-term warranty obligations included in accrued expenses on the balance sheet, as of March 31, 2021 December 31, 2020, March 31, 2021 December 31, 2020 Balance at the beginning of the period $ 1,056,613 $ 813,288 Warranty costs charged to cost of goods sold 29,861 348,241 Utilization charges against reserve (23,747 ) (199,624 ) Release of accrual related to expired warranties - - Foreign currency effect (47,721 ) 94,708 Balance at the end of the period $ 1,015,006 $ 1,056,613 |
Note 6 - Earnings Per Share
Note 6 - Earnings Per Share | 3 Months Ended |
Mar. 31, 2021 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | NOTE 6 - EARNINGS PER SHARE Basic and diluted net income (loss) per common share is determined by dividing net income (loss) by the weighted average common shares outstanding during the period. For the periods where there is a net loss, stock options, warrants and Restricted Stock Units have been excluded from the calculation of diluted net loss per common share because their effect would be anti-dilutive. Consequently, the weighted average common shares used to calculate both basic and diluted net loss per common share would be the same. For the period ended March 31, 2021, 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, 2021 2020: For the Three Months Ended March 31, 2021 2020 Net Income (Loss) attributable to LiqTech International Inc. $ (2,459,429 ) $ 303,499 Weighted average number of common shares used in basic earnings per share 21,677,186 20,554,524 Effect of dilutive securities, stock options, RSUs, and warrants - 156,511 Weighted average number of common shares and potential dilutive common shares outstanding used in dilutive earnings per share 21,677,186 20,711,035 For the three March 31, 2021, For the three March 31, 2020, |
Note 7 - Stockholders' Equity
Note 7 - Stockholders' Equity | 3 Months Ended |
Mar. 31, 2021 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE 7 - STOCKHOLDERS' EQUITY Common Stock March 31, 2021, Voting -- one not Dividends -- may may Liquidation Rights -- Other Matters -- no no Preferred Stock -- one may may The Company has 2,500,000 authorized Preferred stock, $0.001 par value. As of March 31, 2021 Stock Issuance Since January 1, 2021, On January 6, 2021, 2020. On February 26, 2021, 2020. For the three March 31, 2021 2020, Warrants In connection with the Securities Purchase Agreement entered into in May 2020, may no not not 9.99% may not 9.99% The following is a summary of the periodic changes in warrants outstanding for the three March 31, 2021: 2021 Warrants outstanding at January 1 515,000 Exercises and conversions - Warrants outstanding at March 31 515,000 Stock-based Compensation In 2013, March 31, 2021, three 2020 three The Company recognizes compensation costs for RSU grants to directors and management based on the stock price on the date of the grant. The Company recognized stock-based compensation expense related to RSU grants of $102,388 and $141,222 for the three March 31, 2021 2020, March 31, 2021, A summary of the status of the RSUs outstanding as of March 31, 2021 March 31, 2021 Number of units Weighted Average Grant-Date Fair value Aggregated Intrinsic Value Outstanding, December 31, 2020 128,299 $ 5.79 $ 250,183 Granted 59,073 8.90 - Vested and settled with share issuance (41,912 ) 5.65 - Forfeited - - - Outstanding, March 31, 2021 145,460 $ 7.09 $ 145,460 Stock Options In August 2015, March 31, 2021, 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. |
Note 8 - Significant Customers
Note 8 - Significant Customers / Concentration / Disaggregated Revenue | 3 Months Ended |
Mar. 31, 2021 | |
Notes to Financial Statements | |
Concentration Risk Disclosure [Text Block] | NOTE 8 - SIGNIFICANT CUSTOMERS / CONCENTRATION / DISAGGREGATED REVENUE The following table presents customers accounting for 10% For the three months ended March 31, 2021 March 31, 2020 Customer A 18 % 12 % Customer B 10 % 35 % Customer C * 12 % Customer D * 11 % * Zero or less than 10% The following table presents customers accounting for 10% March 31, 2021 December 31, 2020 Customer A 11 % 11 % Customer B 17 % 40 % Customer C * 16 % Customer E 16 % * * Zero or less than 10% As of March 31, 2021, December 31, 2020, |
Note 9 - Segment Reporting
Note 9 - Segment Reporting | 3 Months Ended |
Mar. 31, 2021 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | NOTE 9 SEGMENT REPORTING The Company operates in three January 1, 2020, 2020. Segment information for the business areas is as follows: For the Three months ended March 31, Revenues 2021 2020 Water $ 1,157,336 $ 7,911,803 Ceramics 1,931,065 1,628,546 Plastics 814,025 581,411 Other 95,451 160,084 Total consolidated revenue $ 3,997,877 $ 10,281,844 For the Three months ended March 31, Income (Loss) 2021 2020 Water $ (636,439 ) $ 616,967 Ceramics (424,535 ) (101,095 ) Plastics (252,979 ) (31,847 ) Other (1,145,476 ) (180,526 ) Total consolidated Income (Loss) $ (2,459,429 ) $ 303,499 For the period ended Total assets March 31, 2021 December 31, 2020 Water $ 12,470,391 $ 14,033,107 Ceramics 15,943,251 16,734,371 Plastics 1,622,276 2,022,381 Other 6,721,338 9,420,278 Total consolidated assets $ 36,757,256 $ 42,210,137 |
Note 10 - Subsequent Events
Note 10 - Subsequent Events | 3 Months Ended |
Mar. 31, 2021 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | NOTE 10 - SUBSEQUENT EVENTS On March 24, 2021, 2023 April 8, 2021 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
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% owned subsidiary of the Company formed in May 2011. LiqTech Holding A/S (formerly known as LiqTech International A/S), a Danish corporation, incorporated on January 15, 2000 ( LiqTech NA, Inc. (“LiqTech NA”), incorporated in Delaware on July 1, 2005, January 2021, LiqTech Water A/S (formerly known as LiqTech Systems A/S), a Danish Corporation (“LiqTech Water”), incorporated on September 1, 2009, LiqTech Plastics A/S (formerly known as BS Plastic A/S), a Danish Corporation (“LiqTech Plastics”), acquired on September 1, 2019, LiqTech Ceramics A/S, a Danish corporation (“LiqTech Ceramics”), incorporated on December 20, 2019, LiqTech Water Projects A/S, a Danish corporation (“LiqTech Water Projects”), incorporated on July 28, 2020 LiqTech Emission Control A/S, a Danish corporation (“LiqTech Emission Control”), incorporated on March 1, 2021 LiqTech Germany (“LiqTech Germany”), a 100% owned subsidiary of LiqTech Holding, incorporated in Germany on December 9, 2011. LiqTech PTE Ltd (“LiqTech Singapore”), a 95% owned subsidiary of LiqTech Holding, incorporated in Singapore on January 19, 2012. |
Consolidation, Policy [Policy Text Block] | Consolidation -- |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Functional Currency / Foreign currency translation -- three March 31, 2021 2020. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash, Cash Equivalents and Restricted Cash -- three March 31, 2021 December 31, 2020, March 31, 2021 December 31, 2020. |
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, 2021 December 31, 2020 March 31, 2021 December 31, 2020 Allowance for doubtful accounts at the beginning of the period $ 498,044 $ 612,434 Bad debt expense 48,595 320,270 Receivables written off during the periods - (484,265 ) Effect of currency translation (23,716 ) (49,605 ) Allowance for doubtful accounts at the end of the period $ 522,923 $ 498,044 |
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] | Contracts Assets not Contract assets also include unbilled receivables, which usually comprise the last invoice remaining after the delivery of the water treatment unit, where revenue is recognized at the transfer of control based upon signed acceptance of the water treatment unit by the customer. Most commonly this invoice is sent to the customer at commissioning of the product or no 12 |
Lessee, Leases [Policy Text Block] | Leases -- February 2016, No. 2016 02, 842” On January 1, 2019, 842 not 12 not not may |
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 ten 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 value 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, 2021 2020: For the Three months ended March 31, 2021 2020 United States and Canada $ 165,588 $ 126,482 Australia 32,141 42,255 South America - 10,896 Asia 1,157,155 2,033,288 Europe 2,642,993 8,068,923 $ 3,997,877 $ 10,281,844 The Company’s sales by product line are as follows for the three March 31, 2021 2020: For the Three months ended March 31, 2021 2020 Ceramic diesel particulate $ 1,931,064 $ 1,560,062 Liquid filters and systems 1,157,336 7,980,287 Plastics 814,025 581,411 Development projects 95,452 160,084 $ 3,997,877 $ 10,281,844 For membranes, diesel particulate filters and plastic components, revenue is recognized when performance obligations under the terms of a contract with the customer are satisfied, which occurs when control of the product 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 is 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 to receive 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 to the customer based upon sales and delivery conditions specified in the sales contract. This typically occurs upon shipment of the system from the production facility but can also occur upon other agreed delivery terms. In connection with the completion of the system, it is normal procedure to issue a FAT (Factory Acceptance Test) asserting that the customer has accepted the performance of the system as it is being shipped from our 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 sheet 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 sheet as Contract liabilities. Contract assets represent 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, 2021 December 31, 2020 March 31, 2021 December 31, 2020 Cost incurred $ 3,771,411 $ 3,997,161 Unbilled project deliveries 530,982 1,015,977 VAT 256,168 446,608 Other receivables 58,517 75,010 Prepayments (3,183,216 ) (3,112,118 ) Deferred revenue (851,319 ) (866,680 ) $ 582,543 $ 1,555,958 Distributed as follows: Contract assets $ 1,820,157 $ 2,708,136 Contract liabilities (1,237,614 ) (1,152,178 ) $ 582,543 $ 1,555,958 |
Advertising Cost [Policy Text Block] | Advertising Cost -- three March 31, 2021 2020, |
Research and Development Expense, Policy [Policy Text Block] | Research and Development Cost -- three March 31, 2021 2020 |
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, three March 31, 2021 2020, |
Warrant Liability [Policy Text Block] | Warrant Liability -- May 2020 480, 480” August 12, 2020, August 12, 2020 |
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 approximate 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 -- March 2020, 2020 04, 848 December 31, 2022. On March 9, 2020, 2020 03, December 15, 2019 2020 03 January 1, 2020 no In December 2019, 2019 12, 740 December 15, 2020 January 1, 2021 not 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, 2021 | |
Notes Tables | |
Financing Receivable, Allowance for Credit Loss [Table Text Block] | March 31, 2021 December 31, 2020 Allowance for doubtful accounts at the beginning of the period $ 498,044 $ 612,434 Bad debt expense 48,595 320,270 Receivables written off during the periods - (484,265 ) Effect of currency translation (23,716 ) (49,605 ) Allowance for doubtful accounts at the end of the period $ 522,923 $ 498,044 |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | For the Three months ended March 31, 2021 2020 United States and Canada $ 165,588 $ 126,482 Australia 32,141 42,255 South America - 10,896 Asia 1,157,155 2,033,288 Europe 2,642,993 8,068,923 $ 3,997,877 $ 10,281,844 |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | For the Three months ended March 31, 2021 2020 Ceramic diesel particulate $ 1,931,064 $ 1,560,062 Liquid filters and systems 1,157,336 7,980,287 Plastics 814,025 581,411 Development projects 95,452 160,084 $ 3,997,877 $ 10,281,844 |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Table Text Block] | March 31, 2021 December 31, 2020 Cost incurred $ 3,771,411 $ 3,997,161 Unbilled project deliveries 530,982 1,015,977 VAT 256,168 446,608 Other receivables 58,517 75,010 Prepayments (3,183,216 ) (3,112,118 ) Deferred revenue (851,319 ) (866,680 ) $ 582,543 $ 1,555,958 Distributed as follows: Contract assets $ 1,820,157 $ 2,708,136 Contract liabilities (1,237,614 ) (1,152,178 ) $ 582,543 $ 1,555,958 |
Note 2 - Inventory (Tables)
Note 2 - Inventory (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | March 31, 2021 December 31, 2020 Furnace parts and supplies $ 447,548 $ 471,622 Raw materials 2,177,424 1,955,713 Work in process 2,104,016 2,394,481 Finished goods and filtration systems 1,278,262 1,424,171 Reserve for obsolescence (598,552 ) (723,949 ) Net Inventory $ 5,408,698 $ 5,522,038 |
Note 3 - Leases (Tables)
Note 3 - Leases (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Notes Tables | |
Lessee, Operating and Finance Lease, Assets and Liabilities [Table Text Block] | March 31, 2021 December 31, 2020 Operating leases Operating lease right-of-use $ 4,527,952 $ 4,947,734 Operating lease liabilities - current $ 939,850 $ 1,026,235 Operating lease liabilities – long-term 3,808,405 4,159,225 Total operating lease liabilities $ 4,748,255 $ 5,185,460 Finance leases Property and equipment, at cost $ 4,602,291 $ 4,819,201 Accumulated depreciation (1,363,829 ) (1,389,488 ) Property and equipment, net $ 3,238,462 $ 3,429,713 Finance lease liabilities - current $ 379,817 $ 394,839 Finance lease liabilities – long-term 2,876,412 3,112,496 Total finance lease liabilities $ 3,256,229 $ 3,507,335 Weighted average remaining lease term: Operating leases 9.9 10.0 Finance leases 6.6 6.9 Weighted average discount rate: Operating leases 6.2 % 6.2 % Finance leases 2.8 % 2.8 % |
Maturity of Operating and Finance Lease Liabilities [Table Text Block] | Operating lease Finance lease 2021 (remaining 9 months) $ 734,337 $ 350,208 2022 914,122 465,294 2023 812,028 460,429 2024 655,175 461,420 2025 338,303 457,663 Thereafter 2,860,017 1,429,100 Total payment under lease agreements 6,313,982 3,624,114 Less imputed interest (1,565,727 ) (367,885 ) Total lease liability $ 4,748,255 $ 3,256,229 |
Note 5 - Agreements and Commi_2
Note 5 - Agreements and Commitments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Notes Tables | |
Schedule of Product Warranty Liability [Table Text Block] | March 31, 2021 December 31, 2020 Balance at the beginning of the period $ 1,056,613 $ 813,288 Warranty costs charged to cost of goods sold 29,861 348,241 Utilization charges against reserve (23,747 ) (199,624 ) Release of accrual related to expired warranties - - Foreign currency effect (47,721 ) 94,708 Balance at the end of the period $ 1,015,006 $ 1,056,613 |
Note 6 - Earnings Per Share (Ta
Note 6 - Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Notes Tables | |
Schedule of Weighted Average Number of Shares [Table Text Block] | For the Three Months Ended March 31, 2021 2020 Net Income (Loss) attributable to LiqTech International Inc. $ (2,459,429 ) $ 303,499 Weighted average number of common shares used in basic earnings per share 21,677,186 20,554,524 Effect of dilutive securities, stock options, RSUs, and warrants - 156,511 Weighted average number of common shares and potential dilutive common shares outstanding used in dilutive earnings per share 21,677,186 20,711,035 |
Note 7 - Stockholders' Equity (
Note 7 - Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Notes Tables | |
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block] | 2021 Warrants outstanding at January 1 515,000 Exercises and conversions - Warrants outstanding at March 31 515,000 |
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | March 31, 2021 Number of units Weighted Average Grant-Date Fair value Aggregated Intrinsic Value Outstanding, December 31, 2020 128,299 $ 5.79 $ 250,183 Granted 59,073 8.90 - Vested and settled with share issuance (41,912 ) 5.65 - Forfeited - - - Outstanding, March 31, 2021 145,460 $ 7.09 $ 145,460 |
Note 8 - Significant Customer_2
Note 8 - Significant Customers / Concentration / Disaggregated Revenue (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Notes Tables | |
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | For the three months ended March 31, 2021 March 31, 2020 Customer A 18 % 12 % Customer B 10 % 35 % Customer C * 12 % Customer D * 11 % March 31, 2021 December 31, 2020 Customer A 11 % 11 % Customer B 17 % 40 % Customer C * 16 % Customer E 16 % * |
Note 9 - Segment Reporting (Tab
Note 9 - Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | For the Three months ended March 31, Revenues 2021 2020 Water $ 1,157,336 $ 7,911,803 Ceramics 1,931,065 1,628,546 Plastics 814,025 581,411 Other 95,451 160,084 Total consolidated revenue $ 3,997,877 $ 10,281,844 For the Three months ended March 31, Income (Loss) 2021 2020 Water $ (636,439 ) $ 616,967 Ceramics (424,535 ) (101,095 ) Plastics (252,979 ) (31,847 ) Other (1,145,476 ) (180,526 ) Total consolidated Income (Loss) $ (2,459,429 ) $ 303,499 For the period ended Total assets March 31, 2021 December 31, 2020 Water $ 12,470,391 $ 14,033,107 Ceramics 15,943,251 16,734,371 Plastics 1,622,276 2,022,381 Other 6,721,338 9,420,278 Total consolidated assets $ 36,757,256 $ 42,210,137 |
Note 1 - Summary of Significa_3
Note 1 - Summary of Significant Accounting Policies (Details Textual) - USD ($) | Aug. 12, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 |
Restricted Cash and Cash Equivalents, Current, Total | $ 1,514,917 | $ 1,515,620 | ||
Cash, Uninsured Amount | 0 | $ 0 | ||
Advertising Expense | 122,148 | $ 25,237 | ||
Research and Development Expense, Total | 437,607 | 310,954 | ||
Share-based Payment Arrangement, Expense | $ 102,388 | $ 141,222 | ||
Additional Paid-in Capital [Member] | ||||
Adjustments to Additional Paid in Capital, Warrant Issued | $ 3,476,250 | |||
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 | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Allowance for doubtful accounts | $ 498,044 | $ 612,434 |
Bad debt expense | 48,595 | 320,270 |
Receivables written off during the periods | 0 | (484,265) |
Effect of currency translation | (23,716) | (49,605) |
Allowance for doubtful accounts | $ 522,923 | $ 498,044 |
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, 2021 | Mar. 31, 2020 | |
Revenue | $ 3,997,877 | $ 10,281,844 |
Reportable Geographical Components [Member] | US And Canada [Member] | ||
Revenue | 165,588 | 126,482 |
Reportable Geographical Components [Member] | AUSTRALIA | ||
Revenue | 32,141 | 42,255 |
Reportable Geographical Components [Member] | South America [Member] | ||
Revenue | 0 | 10,896 |
Reportable Geographical Components [Member] | Asia [Member] | ||
Revenue | 1,157,155 | 2,033,288 |
Reportable Geographical Components [Member] | Europe [Member] | ||
Revenue | $ 2,642,993 | $ 8,068,923 |
Note 1 - Summary of Significa_6
Note 1 - Summary of Significant Accounting Policies - Sales by Product Line (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenue | $ 3,997,877 | $ 10,281,844 |
Ceramic Diesel Particulate [Member] | ||
Revenue | 1,931,064 | 1,560,062 |
Liquid Filters [Member] | ||
Revenue | 1,157,336 | 7,980,287 |
Plastic Products [Member] | ||
Revenue | 814,025 | 581,411 |
Development Projects [Member] | ||
Revenue | $ 95,452 | $ 160,084 |
Note 1 - Summary of Significa_7
Note 1 - Summary of Significant Accounting Policies - Contract Assets and Liabilities (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Cost incurred | $ 3,771,411 | $ 3,997,161 |
Unbilled project deliveries | 530,982 | 1,015,977 |
VAT | 256,168 | 446,608 |
Other receivables | 58,517 | 75,010 |
Prepayments | (3,183,216) | (3,112,118) |
Deferred revenue | (851,319) | (866,680) |
Contract with Customer, Asset (Liability), Net | 582,543 | 1,555,958 |
Contract assets | 1,820,157 | 2,708,136 |
Contract liabilities | (1,237,614) | (1,152,178) |
Contract with Customer, Asset (Liability), Net | $ 582,543 | $ 1,555,958 |
Note 2 - Inventory - Summary of
Note 2 - Inventory - Summary of Inventory (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Furnace parts and supplies | $ 447,548 | $ 471,622 |
Raw materials | 2,177,424 | 1,955,713 |
Work in process | 2,104,016 | 2,394,481 |
Finished goods and filtration systems | 1,278,262 | 1,424,171 |
Reserve for obsolescence | (598,552) | (723,949) |
Net Inventory | $ 5,408,698 | $ 5,522,038 |
Note 3 - Leases (Details Textua
Note 3 - Leases (Details Textual) | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Operating Lease, Payments | $ 286,633 |
Finance Lease, Principal Payments | 119,851 |
Operating Expense [Member] | |
Operating Lease, Expense | 278,689 |
Other Nonoperating Income (Expense) [Member] | |
Finance Lease Expense | $ 61,941 |
Note 3 - Leases - Balance Sheet
Note 3 - Leases - Balance Sheet Information (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Operating lease right-of-use | $ 4,527,952 | $ 4,947,734 |
Operating lease liabilities - current | 939,850 | 1,026,235 |
Operating lease liabilities – long-term | 3,808,405 | 4,159,225 |
Total operating lease liability | 4,748,255 | 5,185,460 |
Property and equipment, at cost | 4,602,291 | 4,819,201 |
Accumulated depreciation | (1,363,829) | (1,389,488) |
Property and equipment, net | 3,238,462 | 3,429,713 |
Finance lease liabilities - current | 379,817 | 394,839 |
Finance lease liabilities – long-term | 2,876,412 | 3,112,496 |
Total finance lease liability | $ 3,256,229 | $ 3,507,335 |
Operating leases (Year) | 9 years 10 months 24 days | 10 years |
Finance leases (Year) | 6 years 7 months 6 days | 6 years 10 months 24 days |
Operating leases | 6.20% | 6.20% |
Finance leases | 2.80% | 2.80% |
Note 3 - Leases - Maturities of
Note 3 - Leases - Maturities of Lease Liabilities (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
2021 (remaining 9 months), operating lease | $ 734,337 | |
2021 (remaining 9 months), finance lease | 350,208 | |
2022, operating lease | 914,122 | |
2022, finance lease | 465,294 | |
2023, operating lease | 812,028 | |
2023, finance lease | 460,429 | |
2024, operating lease | 655,175 | |
2024, finance lease | 461,420 | |
2025, operating lease | 338,303 | |
2025, finance lease | 457,663 | |
Thereafter, operating lease | 2,860,017 | |
Thereafter, finance lease | 1,429,100 | |
Total payment under operating lease agreements | 6,313,982 | |
Total payment under finance lease agreements | 3,624,114 | |
Less imputed interest on operating lease | (1,565,727) | |
Less imputed interest on finance lease | (367,885) | |
Total operating lease liability | 4,748,255 | $ 5,185,460 |
Total finance lease liability | $ 3,256,229 | $ 3,507,335 |
Note 4 - Lines of Credit (Detai
Note 4 - Lines of Credit (Details Textual) - Mar. 31, 2021 | USD ($) | DKK (kr) |
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,650,000 | kr 10,000,000 |
Security Deposit | 1,500,000 | |
Guarantor Obligations, Current Carrying Value | $ 14,917 | kr 94,620 |
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, 2021USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020DKK (kr) |
Defined Contribution Plan, Cost | $ 718 | $ 3,949 | ||||||
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 Ceramics [Member] | Claim with Former Supplier for Breach of Agreement [Member] | ||||||||
Loss Contingency, Damages Sought, Value | $ 68,800 | kr 448,500 | ||||||
Litigation Settlement, Amount Awarded to Other Party | $ 96,900 | kr 587,000 | ||||||
LiqTech International AS [Member] | Claim with Former Supplier for Services Rendered [Member] | ||||||||
Loss Contingency, Damages Sought, Value | $ 89,800 | kr 543,905 | ||||||
Joint Venture Agreement [Member] | ||||||||
Equity Method Investment, Ownership Percentage | 49.00% |
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, 2021 | Dec. 31, 2020 | |
Balance at the beginning of the period | $ 1,056,613 | $ 813,288 |
Warranty costs charged to cost of goods sold | 29,861 | 348,241 |
Utilization charges against reserve | (23,747) | (199,624) |
Release of accrual related to expired warranties | 0 | 0 |
Foreign currency effect | (47,721) | 94,708 |
Balance at the end of the period | $ 1,015,006 | $ 1,056,613 |
Note 6 - Earnings Per Share (De
Note 6 - Earnings Per Share (Details Textual) - $ / shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
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 | |
Restricted Stock Units (RSUs) [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 145,460 | |
Warrant [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 515,000 | |
Share-based Payment Arrangement, Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 0 | 25,000 |
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, 2021 | Mar. 31, 2020 | |
Net Income (Loss) attributable to LiqTech International Inc. | $ (2,459,429) | $ 303,499 |
Weighted average number of common shares used in basic earnings per share (in shares) | 21,677,186 | 20,554,524 |
Effect of dilutive securities, stock options, RSUs, and warrants (in shares) | 0 | 156,511 |
Weighted average number of common shares and potential dilutive common shares outstanding used in dilutive earnings per share (in shares) | 21,677,186 | 20,711,035 |
Note 7 - Stockholders' Equity_2
Note 7 - Stockholders' Equity (Details Textual) - USD ($) | Feb. 26, 2021 | Jan. 06, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2013 | May 21, 2020 |
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, Outstanding, Ending Balance (in shares) | 21,697,373 | 21,655,461 | |||||
Preferred Stock, Shares Authorized (in shares) | 2,500,000 | 2,500,000 | |||||
Preferred Stock, Par or Stated Value Per Share (in dollars per share) | $ 0.001 | $ 0.001 | |||||
Preferred Stock, Shares Issued, Total (in shares) | 0 | 0 | |||||
Stock Issued During Period, Value, Issued for Services | $ 0 | $ 45,000 | |||||
Share-based Payment Arrangement, Expense | $ 102,388 | 141,222 | |||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares) | 515,000 | ||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ 5 | ||||||
Common Stock, Shares, Issued, Total (in shares) | 21,697,373 | 21,655,461 | |||||
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) | 0 | ||||||
Restricted Stock Units (RSUs) [Member] | |||||||
Share-based Payment Arrangement, Expense | $ 102,388 | $ 141,222 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance (in shares) | 145,460 | 128,299 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 59,073 | ||||||
Share-based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount | $ 896,112 | ||||||
Director [Member] | |||||||
Stock Issued During Period, Shares, Issued for Services (in shares) | 11,218 | ||||||
Stock Issued During Period, Value, Issued for Services | $ 70,000 | ||||||
Director [Member] | Restricted Stock Units (RSUs) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 25,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 3 years | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Annual Grant | $ 35,000 | ||||||
Management [Member] | |||||||
Stock Issued During Period, Shares, Issued for Services (in shares) | 30,694 | ||||||
Stock Issued During Period, Value, Issued for Services | $ 166,667 | ||||||
Management [Member] | Restricted Stock Units (RSUs) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 40,432 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 3 years | ||||||
Board of Directors Chairman [Member] | Restricted Stock Units (RSUs) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Annual Grant | $ 70,000 | ||||||
Convertible Preferred Stock [Member] | |||||||
Preferred Stock, Shares Issued, Total (in shares) | 0 | ||||||
Preferred Stock, Shares Outstanding, Ending Balance (in shares) | 0 |
Note 7 - Stockholders' Equity -
Note 7 - Stockholders' Equity - Warrants (Details) | 3 Months Ended |
Mar. 31, 2021shares | |
Warrants outstanding at January 1 (in shares) | 515,000 |
Exercises and conversions (in shares) | 0 |
Warrants outstanding at March 31 (in shares) | 515,000 |
Note 7 - Stockholders' Equity_3
Note 7 - Stockholders' Equity - Share Incentive Plan Activity (Details) - Restricted Stock Units (RSUs) [Member] - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Outstanding, units (in shares) | 128,299 | |
Outstanding, weighted average grant-date fair value (in dollars per share) | $ 5.79 | |
Outstanding, aggregated intrinsic value | $ 145,460 | $ 250,183 |
Granted, units (in shares) | 59,073 | |
Granted, weighted average grant-date fair value (in dollars per share) | $ 8.90 | |
Vested and settled with share issuance, units (in shares) | (41,912) | |
Vested and settled with share issuance, weighted average grant-date fair value (in dollars per share) | $ 5.65 | |
Forfeited, units (in shares) | 0 | |
Forfeited, weighted average grant-date fair value (in dollars per share) | $ 0 | |
Outstanding, units (in shares) | 145,460 | 128,299 |
Outstanding, weighted average grant-date fair value (in dollars per share) | $ 7.09 | $ 5.79 |
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, 2021 | Dec. 31, 2020 | |
DENMARK | ||
Concentration Risk, Percentage | 99.00% | 100.00% |
UNITED STATES | ||
Concentration Risk, Percentage | 1.00% | 0.00% |
Note 8 - Significant Customer_4
Note 8 - Significant Customers / Concentration / Disaggregated Revenue - Concentration of Risk (Details) - Customer Concentration Risk [Member] | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Revenue Benchmark [Member] | Customer A [Member] | |||
Concentration Risk, Percentage | 18.00% | 12.00% | |
Revenue Benchmark [Member] | Customer B [Member] | |||
Concentration Risk, Percentage | 10.00% | 35.00% | |
Revenue Benchmark [Member] | Customer C [Member] | |||
Concentration Risk, Percentage | 12.00% | ||
Revenue Benchmark [Member] | Customer D [Member] | |||
Concentration Risk, Percentage | 11.00% | ||
Accounts Receivable [Member] | Customer A [Member] | |||
Concentration Risk, Percentage | 11.00% | 11.00% | |
Accounts Receivable [Member] | Customer B [Member] | |||
Concentration Risk, Percentage | 17.00% | 40.00% | |
Accounts Receivable [Member] | Customer C [Member] | |||
Concentration Risk, Percentage | 16.00% | ||
Accounts Receivable [Member] | Customer E [Member] | |||
Concentration Risk, Percentage | 16.00% |
Note 9 - Segment Reporting - Su
Note 9 - Segment Reporting - Summary of Segment Activity (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Revenue | $ 3,997,877 | $ 10,281,844 | |
Net Income (Loss) | (2,459,429) | 303,499 | |
Segment assets | 36,757,256 | $ 42,210,137 | |
Water Segment [Member] | |||
Revenue | 1,157,336 | 7,911,803 | |
Net Income (Loss) | (636,439) | 616,967 | |
Segment assets | 12,470,391 | 14,033,107 | |
Ceramics Segment [Member] | |||
Revenue | 1,931,065 | 1,628,546 | |
Net Income (Loss) | (424,535) | (101,095) | |
Segment assets | 15,943,251 | 16,734,371 | |
Plastic Products [Member] | |||
Revenue | 814,025 | 581,411 | |
Net Income (Loss) | (252,979) | (31,847) | |
Segment assets | 1,622,276 | 2,022,381 | |
Other Segments [Member] | |||
Revenue | 95,451 | 160,084 | |
Net Income (Loss) | (1,145,476) | $ (180,526) | |
Segment assets | $ 6,721,338 | $ 9,420,278 |
Note 10 - Subsequent Events (De
Note 10 - Subsequent Events (Details Textual) - USD ($) $ / shares in Units, $ in Millions | Apr. 08, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ 0.001 | $ 0.001 | |
Subsequent Event [Member] | March 2021 Purchase Agreement [Member] | |||
Stock Issued During Period, Shares, New Issues (in shares) | 80,000 | ||
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ 0.001 | ||
Issuance of Stock and Debt Value | $ 15 | ||
Senior Convertible Note Due in 2023 [Member] | Subsequent Event [Member] | |||
Debt Instrument, Face Amount | $ 15 |