Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 15, 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 | Q3 | |
Document Fiscal Year Focus | 2021 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 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, $0.001 par value | |
Trading Symbol | LIQT | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 21,285,706 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Current Assets: | ||
Cash and restricted cash | $ 20,692,339 | $ 13,264,449 |
Accounts receivable, net of allowance for doubtful accounts of $519,157 and $498,044 at September 30, 2021 and December 31, 2020, respectively | 2,233,586 | 3,129,109 |
Inventories, net of allowance for excess and obsolete inventory of $622,215 and $723,949 at September 30, 2021 and December 31, 2020, respectively | 5,117,362 | 5,522,038 |
Contract assets | 1,939,107 | 2,708,136 |
Prepaid expenses and other current assets | 686,112 | 1,031,194 |
Total Current Assets | 30,668,506 | 25,654,926 |
Long-Term Assets: | ||
Property and equipment, net of accumulated depreciation of $8,337,314 and $8,908,145 at September 30, 2021 and December 31, 2020, respectively | 9,345,299 | 10,321,511 |
Operating lease right-of-use assets | 7,246,422 | 4,947,734 |
Deposits and other assets | 517,847 | 545,673 |
Intangible assets, net of accumulated amortization of $336,961 and $269,441 at September 30, 2021 and December 31, 2020, respectively | 370,012 | 480,060 |
Goodwill | 245,467 | 260,233 |
Total Long-Term Assets | 17,725,047 | 16,555,211 |
Total Assets | 48,393,553 | 42,210,137 |
Current Liabilities: | ||
Accounts payable | 2,023,985 | 2,332,151 |
Accrued expenses | 4,363,370 | 4,908,961 |
Current portion of finance lease obligations | 379,726 | 394,839 |
Current portion of operating lease liabilities | 781,235 | 1,026,235 |
Current portion of convertible note payable | 5,880,000 | 0 |
Contract liabilities | 908,172 | 1,152,748 |
Total Current Liabilities | 14,336,488 | 9,814,934 |
Convertible note payable, net of discount of $2,504,462 and $0 at September 30, 2021 and December 31, 2020, respectively | 8,415,538 | 0 |
Deferred tax liability | 245,262 | 305,167 |
Other liabilities, net of current portion | 564,621 | 0 |
Finance lease obligations, net of current portion | 2,650,139 | 3,112,496 |
Operating lease liabilities, net of current portion | 6,485,282 | 4,159,225 |
Total Long-term Liabilities | 18,360,842 | 7,576,888 |
Total Liabilities | 32,697,330 | 17,391,822 |
Stockholders' Equity: | ||
Common stock; par value $0.001, 100,000,000 shares authorized, 21,285,706 and 21,655,461 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively | 21,285 | 21,655 |
Additional paid-in capital | 70,784,780 | 69,897,698 |
Accumulated deficit | (50,516,461) | (42,054,968) |
Accumulated other comprehensive loss | (4,593,381) | (3,046,070) |
Total Stockholders' Equity | 15,696,223 | 24,818,315 |
Total Liabilities and Stockholders' Equity | $ 48,393,553 | $ 42,210,137 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Accounts receivable, allowance for doubtful accounts | $ 519,157 | $ 498,044 |
Inventories, allowance for excess and obsolete inventory | 622,215 | 723,949 |
Property and equipment, accumulated depreciation | 8,337,314 | 8,908,145 |
Intangible assets, accumulated depreciations | $ 336,961 | $ 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, shared outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 21,285,706 | 21,655,461 |
Common stock, shares outstanding (in shares) | 21,285,706 | 21,655,461 |
Convertible Debt [Member] | ||
Debt unamortized discount | $ 2,504,462 | $ 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenue | $ 4,142,954 | $ 3,543,730 | $ 12,157,394 | $ 18,467,057 |
Cost of goods sold | 3,946,732 | 3,852,210 | 11,525,847 | 15,641,998 |
Gross Profit | 196,222 | (308,480) | 631,547 | 2,825,059 |
Operating Expenses: | ||||
Selling expenses | 1,205,849 | 741,738 | 3,417,933 | 2,024,485 |
General and administrative expenses | 1,102,772 | 1,526,327 | 3,824,574 | 4,585,857 |
Research and development expenses | 497,823 | 256,239 | 1,370,059 | 883,752 |
Total Operating Expense | 2,806,444 | 2,524,304 | 8,612,566 | 7,494,094 |
Loss from Operations | (2,610,222) | (2,832,784) | (7,981,019) | (4,669,035) |
Other Income (Expense) | ||||
Interest and other income | 0 | 8,164 | 0 | 12,901 |
Gain on modification of earn-out liability | 0 | 301,573 | 0 | 301,573 |
Interest expense | (235,318) | (41,388) | (491,335) | (102,926) |
Amortization discount on convertible note | (292,129) | 0 | (543,933) | 0 |
Fair value adjustment of warrants | 0 | (664,350) | 0 | (901,250) |
Gain (Loss) on currency transactions | 218,030 | (660,747) | 506,018 | (821,681) |
Gain on sale of fixed assets | (8) | 0 | 1,126 | 0 |
Total Other Income (Expense) | (309,425) | (1,056,748) | (528,124) | (1,511,383) |
Loss Before Income Taxes | (2,919,647) | (3,889,532) | (8,509,143) | (6,180,418) |
Income Tax Benefit | (15,691) | (16,113) | (47,650) | (46,687) |
Net Loss | $ (2,903,956) | $ (3,873,419) | $ (8,461,493) | $ (6,133,731) |
Basic and Diluted Loss Per Share (in dollars per share) | $ (0.13) | $ (0.18) | $ (0.39) | $ (0.29) |
Basic and Diluted Weighted Average Common Shares Outstanding (in shares) | 21,540,688 | 21,653,514 | 21,661,945 | 21,059,251 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Net (Loss) | $ (2,903,956) | $ (3,873,419) | $ (8,461,493) | $ (6,133,731) |
Currency translation, net | (603,894) | 1,422,294 | (1,547,311) | 1,666,112 |
Total Comprehensive Loss | $ (3,507,850) | $ (2,451,125) | $ (10,008,804) | $ (4,467,619) |
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 (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 |
Currency translation, net | (495,959) | (495,959) | |||
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 |
Currency translation, net | 1,666,112 | ||||
Net (Loss) | (6,133,731) | ||||
BALANCE (in shares) at Sep. 30, 2020 | 21,655,461 | ||||
BALANCE at Sep. 30, 2020 | $ 21,655 | 69,824,156 | (38,380,339) | (4,500,447) | 26,965,025 |
Currency translation, net | 1,666,112 | ||||
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 |
Common stock issued in settlement of RSUs (in shares) | 8,333 | ||||
Common stock issued in settlement of RSUs | $ 8 | (8) | |||
Stock-based compensation | 82,335 | 82,335 | |||
Currency translation, net | 739,777 | 739,777 | |||
Net (Loss) | (2,563,811) | (2,563,811) | |||
BALANCE (in shares) at Jun. 30, 2020 | 21,649,213 | ||||
BALANCE at Jun. 30, 2020 | $ 21,649 | 66,364,654 | (34,506,920) | (5,922,741) | 25,956,642 |
Common shares issued for cash at $5.00 per share, net of offering cost of $680,952 (in shares) | 1,085,000 | ||||
Common shares issued for cash at $5.00 per share, net of offering cost of $680,952 | $ 1,085 | 4,742,963 | 4,744,048 | ||
Currency translation, net | 739,777 | 739,777 | |||
Additional offering cost of $81,923, related to the capital raise in May 2020 | (680,952) | ||||
Stock-based compensation | 46,681 | 46,681 | |||
Currency translation, net | 1,422,294 | 1,422,294 | |||
Net (Loss) | (3,873,419) | (3,873,419) | |||
BALANCE (in shares) at Sep. 30, 2020 | 21,655,461 | ||||
BALANCE at Sep. 30, 2020 | $ 21,655 | 69,824,156 | (38,380,339) | (4,500,447) | 26,965,025 |
Currency translation, net | 1,422,294 | 1,422,294 | |||
Prefunded warrants, 515,000, transferred to equity upon modification in August 2020 | 3,476,250 | 3,476,250 | |||
Additional offering cost of $81,923, related to the capital raise in May 2020 | (81,923) | (81,923) | |||
Exercise of stock options (in shares) | 6,248 | ||||
Exercise of stock options | $ 6 | 18,494 | 18,500 | ||
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) | |||
Stock-based compensation | 102,388 | 102,388 | |||
Currency translation, net | (1,311,521) | (1,311,521) | |||
Net (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 |
Currency translation, net | (1,311,521) | (1,311,521) | |||
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 |
Currency translation, net | (1,547,311) | ||||
Net (Loss) | (8,461,493) | ||||
BALANCE (in shares) at Sep. 30, 2021 | 21,285,706 | ||||
BALANCE at Sep. 30, 2021 | $ 21,285 | 70,784,780 | (50,516,461) | (4,593,381) | 15,696,223 |
Currency translation, net | (1,547,311) | ||||
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 |
Stock-based compensation | 125,076 | 125,076 | |||
Currency translation, net | 368,104 | 368,104 | |||
Net (Loss) | (3,098,108) | (3,098,108) | |||
Common stock issued as commitment fee for Convertible Note (in shares) | 80,000 | ||||
Common stock issued as commitment fee for Convertible Note | $ 80 | 531,649 | 531,729 | ||
BALANCE (in shares) at Jun. 30, 2021 | 21,777,373 | ||||
BALANCE at Jun. 30, 2021 | $ 21,777 | 70,656,769 | (47,612,505) | (3,989,487) | 19,076,554 |
Currency translation, net | 368,104 | 368,104 | |||
Common stock issued in settlement of RSUs (in shares) | 8,333 | ||||
Common stock issued in settlement of RSUs | $ 8 | (8) | |||
Stock-based compensation | 127,519 | 127,519 | |||
Currency translation, net | (603,894) | (603,894) | |||
Net (Loss) | (2,903,956) | (2,903,956) | |||
Exchange of common stock to prefunded warrants (in shares) | (500,000) | ||||
Exchange of common stock to prefunded warrants | $ (500) | 500 | |||
BALANCE (in shares) at Sep. 30, 2021 | 21,285,706 | ||||
BALANCE at Sep. 30, 2021 | $ 21,285 | $ 70,784,780 | $ (50,516,461) | (4,593,381) | 15,696,223 |
Currency translation, net | $ (603,894) | $ (603,894) |
Condensed Consolidated Statem_4
Condensed Consolidated Statement of Stockholders' Equity (Unaudited) (Parentheticals) - USD ($) | 3 Months Ended | |
Sep. 30, 2020 | Jun. 30, 2020 | |
Shares issued, offering cost | $ 81,923 | $ 680,952 |
Shares issued, offering cost per share (in dollars per share) | $ 5 | |
Prefunded warrants, transferred to equity (in shares) | 515,000 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash Flows from Operating Activities: | ||
Net (Loss) | $ (8,461,493) | $ (6,133,731) |
Adjustments to reconcile net loss to net cash provided by (used in) operations: | ||
Depreciation and amortization | 1,968,011 | 2,019,147 |
Amortization of discount on convertible notes payable | 543,933 | 0 |
Stock-based compensation | 354,983 | 270,238 |
Change in fair value of warrant liability | 0 | 901,250 |
Gain on modification of earn-out liability | 0 | (301,573) |
Change in deferred tax asset / liability | (47,650) | (46,687) |
Gain on sale of fixed assets | (1,126) | 0 |
Changes in assets and liabilities: | ||
Accounts receivable | 741,514 | 2,635,995 |
Inventory | 94,319 | (767,300) |
Contract assets | 628,368 | 2,656,388 |
Prepaid expenses and other current assets | 299,949 | (82,756) |
Accounts payable | (188,035) | (2,646,520) |
Accrued expenses | 599,086 | 1,451,421 |
Operating lease liabilities | (755,503) | (565,209) |
Contract liabilities | (184,447) | (6,242) |
Total Adjustments | 4,053,402 | 5,530,636 |
Net Cash used in Operating Activities | (4,408,091) | (603,095) |
Cash Flows from Investing Activities: | ||
Purchase of property and equipment | (932,293) | (2,904,169) |
Purchase of other intangible assets | 0 | (23,932) |
Proceeds from sale of fixed assets | 1,126 | 0 |
Net cash paid for earn-out agreement | (321,574) | (301,573) |
Net Cash used in Investing Activities | (1,252,741) | (3,229,674) |
Cash Flows from Financing Activities: | ||
Payments on finance lease obligation | (287,526) | (26,120) |
Proceeds from convertible notes payable, net | 14,283,333 | 0 |
Proceeds from exercise of stock options | 0 | 18,500 |
Proceeds from issuance of prefunded warrants | 0 | 2,575,000 |
Proceeds from issuance of common stock, net | 0 | 4,662,125 |
Net Cash provided by Financing Activities | 13,995,807 | 7,229,505 |
Gain (Loss) on Currency Translation | (907,085) | 1,311,881 |
Net change in Cash and Restricted Cash | 7,427,890 | 4,708,617 |
Cash and Restricted Cash at Beginning of Period | 13,264,449 | 9,783,932 |
Cash and Restricted Cash at End of Period | 20,692,339 | 14,492,549 |
Supplemental Disclosures of Cash Flow Information: | ||
Interest | 483,321 | 83,014 |
Income Taxes | 0 | 0 |
Non-cash financing activities | ||
Common Stock issued in conjunction with convertible note financing | 531,729 | 0 |
Convertible Debt [Member] | ||
Non-cash financing activities | ||
Original issue discount on convertible note | 1,800,000 | 0 |
Convertible Note debt conversion feature | 3,048,396 | 0 |
Debt issuance costs on convertible note | $ 716,667 | $ 0 |
Note 1 - Summary of Significant
Note 1 - Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 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 Environment Technologies (China) Co. Ltd. (“LiqTech China”), incorporated on September 23, 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 -- Reclassification Functional Currency / Foreign currency translation -- nine September 30, 2021 2020. Cash and Restricted Cash -- three September 30, 2021 December 31, 2020, Accounts held in each U.S. institution are insured by the Federal Deposit Insurance Company (“FDIC”) up to $250,000. September 30, 2021 December 31, 2020 $0 Accounts Receivable -- The roll-forward of the allowance for doubtful accounts for the period ended September 30, 2021 December 31, 2020 September 30, 2021 December 31, 2020 Allowance for doubtful accounts at the beginning of the period $ 498,044 $ 612,434 Bad debt expense 75,680 320,270 Receivables written off during the periods (24,699 ) (484,265 ) Effect of currency translation (29,868 ) 49,605 Allowance for doubtful accounts at the end of the period $ 519,157 $ 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 / Liabilities 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 fifteen 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 nine September 30, 2021 2020: For the Three Months For the Nine Months Ended September 30, Ended September 30, 2021 2020 2021 2020 United States and Canada $ 211,575 $ 120,163 $ 573,365 $ 577,064 Australia 75,003 118,089 334,855 222,050 Asia 561,619 358,430 2,890,836 2,684,474 Europe 3,294,757 2,947,048 8,358,338 14,983,469 $ 4,142,954 $ 3,543,730 $ 12,157,394 $ 18,467,057 The Company’s sales by product line are as follows for the three nine September 30, 2021 2020: For the Three Months For the Nine Months Ended September 30, Ended September 30, 2021 2020 2021 2020 Liquid filters and systems $ 1,493,549 $ 1,899,160 $ 3,730,889 $ 12,431,157 Diesel particulate filters 1,703,057 1,009,545 5,444,863 3,730,302 Plastic components 855,896 503,297 2,686,292 1,847,092 Development projects 90,452 131,728 295,350 458,506 $ 4,142,954 $ 3,543,730 $ 12,157,394 $ 18,467,057 For liquid filters and systems, 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 periods ended September 30, 2021 December 31, 2020 September 30, 2021 December 31, 2020 Cost incurred $ 4,458,227 $ 3,997,161 Unbilled project deliveries 419,112 1,015,977 VAT 412,733 446,608 Other receivables 90,908 75,010 Prepayments (3,731,079 ) (3,112,118 ) Deferred Revenue (618,966 ) (866,680 ) $ 1,030,935 $ 1,555,958 Distributed as follows: Contract assets $ 1,939,107 $ 2,708,136 Contract liabilities (908,172 ) (1,152,178 ) $ 1,030,935 $ 1,555,958 Advertising Cost -- three September 30, 2021 2020, nine September 30, 2021 2020, 2021 Research and Development Cost -- three September 30, 2021 2020 nine September 30, 2021 2020, Income Taxes -- 740 Income/(Loss) Per Share -- 260, not Stock Options and Awards -- 718, 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, accrued expenses and convertible notes payable approximate their recorded values due to their short-term maturities. Accounting Estimates -- Recent Accounting Pronouncements August 2020, 2020 06, 470 20 815 40 December 15, 2023 December 15, 2020. 2020 06 In March 2020, 2020 04, 848 December 31, 2022. 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 | 9 Months Ended |
Sep. 30, 2021 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | NOTE 2 Inventory consisted of the following at September 30, 2021 December 31, 2020: September 30, 2021 December 31, 2020 Furnace parts and supplies $ 380,381 $ 471,622 Raw materials 2,454,919 1,955,713 Work in process 1,798,152 2,394,481 Finished goods and filtration systems 1,106,125 1,424,171 Reserve for obsolescence (622,215 ) (723,949 ) Net Inventory $ 5,117,362 $ 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 | 9 Months Ended |
Sep. 30, 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 Taicang, China and White Bear Lake, Minnesota. As of September 1, 2021 August 31, 2025 September 1, 2025 September 1, 2021 June 30, 2022. February 2021, not During the nine September 30, 2021, During the nine September 30, 2021, Supplemental balance sheet information related to leases as of September 30, 2021 December 31, 2020 September 30, 2021 December 31, 2020 Operating leases Operating lease right-of-use $ 7,246,422 $ 4,947,734 Operating lease liabilities – current $ 781,235 $ 1,026,235 Operating lease liabilities – long-term 6,485,282 4,159,225 Total operating lease liabilities $ 7,266,517 $ 5,185,460 Finance leases Property and equipment, at cost $ 4,545,747 $ 4,819,201 Accumulated depreciation (1,432,478 ) (1,389,488 ) Property and equipment, net $ 3,113,269 $ 3,429,713 Finance lease liabilities – current $ 379,726 $ 394,839 Finance lease liabilities – long-term 2,650,139 3,112,496 Total finance lease liabilities $ 3,029,865 $ 3,507,335 Weighted average remaining lease term: Operating leases 9.0 10.0 Finance leases 6.1 6.9 Weighted average discount rate: Operating leases 6.5 % 6.2 % Finance leases 2.8 % 2.8 % Maturities of lease liabilities at September 30, 2021 Operating lease Finance lease 2021 (remaining 3 months) $ 297,557 $ 115,213 2022 1,264,956 459,223 2023 1,284,566 454,417 2024 1,130,863 455,396 2025 835,749 451,685 Thereafter 4,843,246 1,410,832 Total payment under lease agreements 9,656,937 3,346,766 Less imputed interest (2,390,420 ) (316,901 ) Total lease liability $ 7,266,517 $ 3,029,865 |
Note 4 - Lines of Credit
Note 4 - Lines of Credit | 9 Months Ended |
Sep. 30, 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 September 30, 2021 |
Note 5 - Long-term Debt
Note 5 - Long-term Debt | 9 Months Ended |
Sep. 30, 2021 | |
Notes to Financial Statements | |
Long-term Debt [Text Block] | NOTE 5 LONG-TERM DEBT Convertible Note On March 24, 2021, October 1, 2023 April 8, 2021, The Note is a senior, unsecured obligation of the Company, payable at 112% of the principal amount at maturity on October 1, 2023, 100.6749 $1,000 The Company may 1 one hundred seventy-five twelve 12 September 24, 2021; 2 twelve 12 Beginning on March 1, 2022, first 90% VWAP three 3 10 no The Note has interest payable quarterly beginning June 1, 2021 The components of the Convertible Note are as follows: September 30, 2021 December 31, 2020 Convertible note $ 16,800,000 - Less: unamortized debt issuance costs (2,504,462 ) - Convertible note payable $ 14,295,538 $ - Current portion of convertible note payable 5,880,000 - Convertible note payable, less current portion 8,415,538 - Convertible note payable $ 14,295,538 $ - For the three September 30, 2021 2020, $0, $0, For the nine September 30, 2021 2020, $0, $0, |
Note 6 - Agreements and Commitm
Note 6 - Agreements and Commitments | 9 Months Ended |
Sep. 30, 2021 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 6 - AGREEMENTS AND COMMITMENTS Agreements none third 401 401 three September 30, 2021 2020, nine September 30, 2021 2020, Contingencies -- may On November 20, 2018, 2016 not December 2020 2020. January 2021. On February 27, 2019, 2017. 2018. no September 30, 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 September 30, 2021 December 31, 2020, September 30, 2021 December 31, 2020 Balance at January 1 $ 1,056,613 $ 813,288 Warranty costs charged to cost of goods sold 79,972 348,241 Utilization charges against reserve (132,360 ) (199,624 ) Release of accrual related to expired warranties - - Foreign currency effect (58,302 ) 94,708 Balance at the end of the period $ 945,923 $ 1,056,613 |
Note 7 - Earnings Per Share
Note 7 - Earnings Per Share | 9 Months Ended |
Sep. 30, 2021 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | NOTE 7 - 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 September 30, 2021, The following table shows the amounts used in computing earnings per share and the weighted average number of shares of potential dilutive common stock for the nine September 30, 2021 2020: For the Nine Months Ended September 30, 2021 2020 Net (Loss) $ (8,461,493 ) $ (6,133,731 ) Weighted average number of common shares used in basic earnings per share 21,661,945 21,059,251 Effect of dilutive securities, stock options, RSUs, and warrants - - Weighted average number of common shares and potential dilutive common shares outstanding used in dilutive earnings per share 21,661,945 21,059,251 For the nine September 30, 2021 2020 no |
Note 8 - Stockholders' Equity
Note 8 - Stockholders' Equity | 9 Months Ended |
Sep. 30, 2021 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE 8 - STOCKHOLDERS' EQUITY Common Stock September 30, 2021 2020, 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 September 30, 2021, Stock Issuance Since January 1, 2021, On January 6, 2021, 2020. On February 26, 2021, 2020. On April 9, 2021, April 8, 2021. On August 17, 2021, On September 3, 2021, Warrants In connection with the Securities Purchase Agreement entered into in May 2020, may no not not 9.99% may not 9.99% On August 17, 2021, 500,000 August 17, 2021, The following is a summary of the periodic changes in warrants outstanding for the nine September 30, 2021: 2021 Warrants outstanding at January 1 515,000 Common stock exchanged to prefunded warrant 500,000 Exercises and conversions - Warrants outstanding at September 30 1,015,000 Stock-based Compensation In 2013, September 30, 2021, three 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 $127,519 and $46,681 for the three September 30, 2021 2020, nine September 30, 2021 2020, September 30, 2021, A summary of the status of the RSUs as of September 30, 2021 September 30, 2021 Number of units Weighted Average Grant-Date Fair value Aggregated Intrinsic Value Outstanding, December 31, 2020 128,299 $ 5.79 $ 283,541 Granted 71,582 7.51 - Vested and settled with share issuance (50,245 ) (5.85 ) - Forfeited - - - Outstanding, September 30, 2021 149,636 $ 6.59 $ - Stock Options In August 2015, September 30, 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 9 - Significant Customers
Note 9 - Significant Customers / Concentration / Disaggregated Revenue | 9 Months Ended |
Sep. 30, 2021 | |
Notes to Financial Statements | |
Concentration Risk Disclosure [Text Block] | NOTE 9 - SIGNIFICANT CUSTOMERS / CONCENTRATION / DISAGGREGATED REVENUE The following table presents customers accounting for 10% For the Three Months For the Nine Months Ended September 30, Ended September 30, 2021 2020 2021 2020 Customer A 21 % * * * Customer B 11 % * 11 % * Customer C 10 % * * * Customer D * 23 % * 27 % Customer E * 20 % * 11 % * Zero or less than 10% The following table presents customers accounting for 10% September 30, 2021 December 31, 2020 Customer D * 39 % Customer B * 16 % Customer C * 12 % * Zero or less than 10% As of September 30, 2021, December 31, 2020, |
Note 10 - Segment Reporting
Note 10 - Segment Reporting | 9 Months Ended |
Sep. 30, 2021 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | NOTE 10 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 For the Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Revenue Water $ 1,493,549 $ 1,925,879 $ 3,730,889 $ 12,127,421 Ceramics 1,703,057 989,601 5,444,863 4,367,591 Plastics 855,896 503,297 2,686,292 1,847,092 Other 90,452 124,953 295,350 124,953 Total consolidated Revenue 4,142,954 3,543,730 12,157,394 18,467,057 For the Three Months Ended For the Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Income (Loss) Water $ (531,868 ) $ (175,725 ) $ (2,112,430 ) $ (64,967 ) Ceramics (798,615 ) (622,504 ) (2,681,013 ) (1,598,205 ) Plastics (358,880 ) (261,544 ) (887,184 ) (329,200 ) Other (1,214,593 ) (2,813,646 ) (2,780,866 ) (4,141,359 ) Total consolidated Loss (2,903,956 ) (3,873,419 ) (8,461,493 ) (6,133,731 ) For the period ended Total assets September 30, 2021 December 31, 2020 Water $ 9,096,032 $ 14,033,107 Ceramics 17,048,081 16,734,371 Plastics 1,940,034 2,022,381 Other 20,309,406 9,420,278 Total consolidated assets $ 48,393,553 $ 42,210,137 |
Note 11 - Subsequent Events
Note 11 - Subsequent Events | 9 Months Ended |
Sep. 30, 2021 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | NOTE 11 - SUBSEQUENT EVENTS None. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 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 Environment Technologies (China) Co. Ltd. (“LiqTech China”), incorporated on September 23, 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 -- |
Reclassification, Comparability Adjustment [Policy Text Block] | Reclassification |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Functional Currency / Foreign currency translation -- nine September 30, 2021 2020. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Restricted Cash -- three September 30, 2021 December 31, 2020, Accounts held in each U.S. institution are insured by the Federal Deposit Insurance Company (“FDIC”) up to $250,000. September 30, 2021 December 31, 2020 $0 |
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 September 30, 2021 December 31, 2020 September 30, 2021 December 31, 2020 Allowance for doubtful accounts at the beginning of the period $ 498,044 $ 612,434 Bad debt expense 75,680 320,270 Receivables written off during the periods (24,699 ) (484,265 ) Effect of currency translation (29,868 ) 49,605 Allowance for doubtful accounts at the end of the period $ 519,157 $ 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 / Liabilities 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, Impairment [Policy Text Block] | Property and Equipment -- three fifteen |
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 nine September 30, 2021 2020: For the Three Months For the Nine Months Ended September 30, Ended September 30, 2021 2020 2021 2020 United States and Canada $ 211,575 $ 120,163 $ 573,365 $ 577,064 Australia 75,003 118,089 334,855 222,050 Asia 561,619 358,430 2,890,836 2,684,474 Europe 3,294,757 2,947,048 8,358,338 14,983,469 $ 4,142,954 $ 3,543,730 $ 12,157,394 $ 18,467,057 The Company’s sales by product line are as follows for the three nine September 30, 2021 2020: For the Three Months For the Nine Months Ended September 30, Ended September 30, 2021 2020 2021 2020 Liquid filters and systems $ 1,493,549 $ 1,899,160 $ 3,730,889 $ 12,431,157 Diesel particulate filters 1,703,057 1,009,545 5,444,863 3,730,302 Plastic components 855,896 503,297 2,686,292 1,847,092 Development projects 90,452 131,728 295,350 458,506 $ 4,142,954 $ 3,543,730 $ 12,157,394 $ 18,467,057 For liquid filters and systems, 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 periods ended September 30, 2021 December 31, 2020 September 30, 2021 December 31, 2020 Cost incurred $ 4,458,227 $ 3,997,161 Unbilled project deliveries 419,112 1,015,977 VAT 412,733 446,608 Other receivables 90,908 75,010 Prepayments (3,731,079 ) (3,112,118 ) Deferred Revenue (618,966 ) (866,680 ) $ 1,030,935 $ 1,555,958 Distributed as follows: Contract assets $ 1,939,107 $ 2,708,136 Contract liabilities (908,172 ) (1,152,178 ) $ 1,030,935 $ 1,555,958 |
Advertising Cost [Policy Text Block] | Advertising Cost -- three September 30, 2021 2020, nine September 30, 2021 2020, 2021 |
Research and Development Expense, Policy [Policy Text Block] | Research and Development Cost -- three September 30, 2021 2020 nine September 30, 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, |
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, accrued expenses and convertible notes payable 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 August 2020, 2020 06, 470 20 815 40 December 15, 2023 December 15, 2020. 2020 06 In March 2020, 2020 04, 848 December 31, 2022. 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) | 9 Months Ended |
Sep. 30, 2021 | |
Notes Tables | |
Financing Receivable, Allowance for Credit Loss [Table Text Block] | September 30, 2021 December 31, 2020 Allowance for doubtful accounts at the beginning of the period $ 498,044 $ 612,434 Bad debt expense 75,680 320,270 Receivables written off during the periods (24,699 ) (484,265 ) Effect of currency translation (29,868 ) 49,605 Allowance for doubtful accounts at the end of the period $ 519,157 $ 498,044 |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | For the Three Months For the Nine Months Ended September 30, Ended September 30, 2021 2020 2021 2020 United States and Canada $ 211,575 $ 120,163 $ 573,365 $ 577,064 Australia 75,003 118,089 334,855 222,050 Asia 561,619 358,430 2,890,836 2,684,474 Europe 3,294,757 2,947,048 8,358,338 14,983,469 $ 4,142,954 $ 3,543,730 $ 12,157,394 $ 18,467,057 |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | For the Three Months For the Nine Months Ended September 30, Ended September 30, 2021 2020 2021 2020 Liquid filters and systems $ 1,493,549 $ 1,899,160 $ 3,730,889 $ 12,431,157 Diesel particulate filters 1,703,057 1,009,545 5,444,863 3,730,302 Plastic components 855,896 503,297 2,686,292 1,847,092 Development projects 90,452 131,728 295,350 458,506 $ 4,142,954 $ 3,543,730 $ 12,157,394 $ 18,467,057 |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Table Text Block] | September 30, 2021 December 31, 2020 Cost incurred $ 4,458,227 $ 3,997,161 Unbilled project deliveries 419,112 1,015,977 VAT 412,733 446,608 Other receivables 90,908 75,010 Prepayments (3,731,079 ) (3,112,118 ) Deferred Revenue (618,966 ) (866,680 ) $ 1,030,935 $ 1,555,958 Distributed as follows: Contract assets $ 1,939,107 $ 2,708,136 Contract liabilities (908,172 ) (1,152,178 ) $ 1,030,935 $ 1,555,958 |
Note 2 - Inventory (Tables)
Note 2 - Inventory (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | September 30, 2021 December 31, 2020 Furnace parts and supplies $ 380,381 $ 471,622 Raw materials 2,454,919 1,955,713 Work in process 1,798,152 2,394,481 Finished goods and filtration systems 1,106,125 1,424,171 Reserve for obsolescence (622,215 ) (723,949 ) Net Inventory $ 5,117,362 $ 5,522,038 |
Note 3 - Leases (Tables)
Note 3 - Leases (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Notes Tables | |
Lessee, Operating and Finance Lease, Assets and Liabilities [Table Text Block] | September 30, 2021 December 31, 2020 Operating leases Operating lease right-of-use $ 7,246,422 $ 4,947,734 Operating lease liabilities – current $ 781,235 $ 1,026,235 Operating lease liabilities – long-term 6,485,282 4,159,225 Total operating lease liabilities $ 7,266,517 $ 5,185,460 Finance leases Property and equipment, at cost $ 4,545,747 $ 4,819,201 Accumulated depreciation (1,432,478 ) (1,389,488 ) Property and equipment, net $ 3,113,269 $ 3,429,713 Finance lease liabilities – current $ 379,726 $ 394,839 Finance lease liabilities – long-term 2,650,139 3,112,496 Total finance lease liabilities $ 3,029,865 $ 3,507,335 Weighted average remaining lease term: Operating leases 9.0 10.0 Finance leases 6.1 6.9 Weighted average discount rate: Operating leases 6.5 % 6.2 % Finance leases 2.8 % 2.8 % |
Maturity of Operating and Finance Lease Liabilities [Table Text Block] | Operating lease Finance lease 2021 (remaining 3 months) $ 297,557 $ 115,213 2022 1,264,956 459,223 2023 1,284,566 454,417 2024 1,130,863 455,396 2025 835,749 451,685 Thereafter 4,843,246 1,410,832 Total payment under lease agreements 9,656,937 3,346,766 Less imputed interest (2,390,420 ) (316,901 ) Total lease liability $ 7,266,517 $ 3,029,865 |
Note 5 - Long-term Debt (Tables
Note 5 - Long-term Debt (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Notes Tables | |
Schedule of Long-term Debt Instruments [Table Text Block] | September 30, 2021 December 31, 2020 Convertible note $ 16,800,000 - Less: unamortized debt issuance costs (2,504,462 ) - Convertible note payable $ 14,295,538 $ - Current portion of convertible note payable 5,880,000 - Convertible note payable, less current portion 8,415,538 - Convertible note payable $ 14,295,538 $ - |
Note 6 - Agreements and Commi_2
Note 6 - Agreements and Commitments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Notes Tables | |
Schedule of Product Warranty Liability [Table Text Block] | September 30, 2021 December 31, 2020 Balance at January 1 $ 1,056,613 $ 813,288 Warranty costs charged to cost of goods sold 79,972 348,241 Utilization charges against reserve (132,360 ) (199,624 ) Release of accrual related to expired warranties - - Foreign currency effect (58,302 ) 94,708 Balance at the end of the period $ 945,923 $ 1,056,613 |
Note 7 - Earnings Per Share (Ta
Note 7 - Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Notes Tables | |
Schedule of Weighted Average Number of Shares [Table Text Block] | For the Nine Months Ended September 30, 2021 2020 Net (Loss) $ (8,461,493 ) $ (6,133,731 ) Weighted average number of common shares used in basic earnings per share 21,661,945 21,059,251 Effect of dilutive securities, stock options, RSUs, and warrants - - Weighted average number of common shares and potential dilutive common shares outstanding used in dilutive earnings per share 21,661,945 21,059,251 |
Note 8 - Stockholders' Equity (
Note 8 - Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Notes Tables | |
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block] | 2021 Warrants outstanding at January 1 515,000 Common stock exchanged to prefunded warrant 500,000 Exercises and conversions - Warrants outstanding at September 30 1,015,000 |
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | September 30, 2021 Number of units Weighted Average Grant-Date Fair value Aggregated Intrinsic Value Outstanding, December 31, 2020 128,299 $ 5.79 $ 283,541 Granted 71,582 7.51 - Vested and settled with share issuance (50,245 ) (5.85 ) - Forfeited - - - Outstanding, September 30, 2021 149,636 $ 6.59 $ - |
Note 9 - Significant Customer_2
Note 9 - Significant Customers / Concentration / Disaggregated Revenue (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Notes Tables | |
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | For the Three Months For the Nine Months Ended September 30, Ended September 30, 2021 2020 2021 2020 Customer A 21 % * * * Customer B 11 % * 11 % * Customer C 10 % * * * Customer D * 23 % * 27 % Customer E * 20 % * 11 % September 30, 2021 December 31, 2020 Customer D * 39 % Customer B * 16 % Customer C * 12 % |
Note 10 - Segment Reporting (Ta
Note 10 - Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | For the Three Months Ended For the Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Revenue Water $ 1,493,549 $ 1,925,879 $ 3,730,889 $ 12,127,421 Ceramics 1,703,057 989,601 5,444,863 4,367,591 Plastics 855,896 503,297 2,686,292 1,847,092 Other 90,452 124,953 295,350 124,953 Total consolidated Revenue 4,142,954 3,543,730 12,157,394 18,467,057 For the Three Months Ended For the Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Income (Loss) Water $ (531,868 ) $ (175,725 ) $ (2,112,430 ) $ (64,967 ) Ceramics (798,615 ) (622,504 ) (2,681,013 ) (1,598,205 ) Plastics (358,880 ) (261,544 ) (887,184 ) (329,200 ) Other (1,214,593 ) (2,813,646 ) (2,780,866 ) (4,141,359 ) Total consolidated Loss (2,903,956 ) (3,873,419 ) (8,461,493 ) (6,133,731 ) For the period ended Total assets September 30, 2021 December 31, 2020 Water $ 9,096,032 $ 14,033,107 Ceramics 17,048,081 16,734,371 Plastics 1,940,034 2,022,381 Other 20,309,406 9,420,278 Total consolidated assets $ 48,393,553 $ 42,210,137 |
Note 1 - Summary of Significa_3
Note 1 - Summary of Significant Accounting Policies (Details Textual) - USD ($) | Aug. 12, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 |
Restricted Cash and Cash Equivalents, Current, Total | $ 1,500,000 | $ 1,500,000 | $ 1,515,620 | |||
Cash, Uninsured Amount | 14,750,644 | 14,750,644 | $ 0 | |||
Advertising Expense | 41,141 | $ 20,522 | 166,376 | $ 82,545 | ||
Research and Development Expense, Total | $ 497,823 | 256,239 | $ 1,370,059 | $ 883,752 | ||
Adjustments to Additional Paid in Capital, Warrant Issued | 3,476,250 | |||||
Additional Paid-in Capital [Member] | ||||||
Adjustments to Additional Paid in Capital, Warrant Issued | $ 3,476,250 | $ 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) | 15 years | |||||
Finite-Lived Intangible Asset, Useful Life (Year) | 10 years | |||||
LiqTech USA [Member] | LiqTech International DK [Member] | ||||||
Percentage of Subsidiary Owned | 100.00% | 100.00% | ||||
LiqTech USA [Member] | LiqTech NA [Member] | ||||||
Percentage of Subsidiary Owned | 100.00% | 100.00% | ||||
LiqTech International DK [Member] | LiqTech Germany [Member] | ||||||
Percentage of Subsidiary Owned | 100.00% | 100.00% | ||||
LiqTech International DK [Member] | LiqTech PTE [Member] | ||||||
Percentage of Subsidiary Owned | 95.00% | 95.00% | ||||
LiqTech USA [Member] | ||||||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | 100.00% |
Note 1 - Summary of Significa_4
Note 1 - Summary of Significant Accounting Policies - Allowance for Doubtful Accounts (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Allowance for doubtful accounts | $ 498,044 | $ 612,434 |
Bad debt expense | 75,680 | 320,270 |
Receivables written off during the periods | (24,699) | (484,265) |
Effect of currency translation | (29,868) | 49,605 |
Allowance for doubtful accounts | $ 519,157 | $ 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 | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenue | $ 4,142,954 | $ 3,543,730 | $ 12,157,394 | $ 18,467,057 |
Reportable Geographical Components [Member] | US And Canada [Member] | ||||
Revenue | 211,575 | 120,163 | 573,365 | 577,064 |
Reportable Geographical Components [Member] | AUSTRALIA | ||||
Revenue | 75,003 | 118,089 | 334,855 | 222,050 |
Reportable Geographical Components [Member] | Asia [Member] | ||||
Revenue | 561,619 | 358,430 | 2,890,836 | 2,684,474 |
Reportable Geographical Components [Member] | Europe [Member] | ||||
Revenue | $ 3,294,757 | $ 2,947,048 | $ 8,358,338 | $ 14,983,469 |
Note 1 - Summary of Significa_6
Note 1 - Summary of Significant Accounting Policies - Sales by Product Line (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenue | $ 4,142,954 | $ 3,543,730 | $ 12,157,394 | $ 18,467,057 |
Liquid Filters [Member] | ||||
Revenue | 1,493,549 | 1,899,160 | 3,730,889 | 12,431,157 |
Diesel Particulate Filters [Member] | ||||
Revenue | 1,703,057 | 1,009,545 | 5,444,863 | 3,730,302 |
Plastic Products [Member] | ||||
Revenue | 855,896 | 503,297 | 2,686,292 | 1,847,092 |
Development Projects [Member] | ||||
Revenue | $ 90,452 | $ 131,728 | $ 295,350 | $ 458,506 |
Note 1 - Summary of Significa_7
Note 1 - Summary of Significant Accounting Policies - Contract Assets and Liabilities (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Cost incurred | $ 4,458,227 | $ 3,997,161 |
Unbilled project deliveries | 419,112 | 1,015,977 |
VAT | 412,733 | 446,608 |
Other receivables | 90,908 | 75,010 |
Prepayments | (3,731,079) | (3,112,118) |
Deferred Revenue | (618,966) | (866,680) |
Contract with Customer, Asset (Liability), Net | 1,030,935 | 1,555,958 |
Contract assets | 1,939,107 | 2,708,136 |
Contract liabilities | (908,172) | (1,152,178) |
Contract with Customer, Asset (Liability), Net | $ 1,030,935 | $ 1,555,958 |
Note 2 - Inventory - Summary of
Note 2 - Inventory - Summary of Inventory (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Furnace parts and supplies | $ 380,381 | $ 471,622 |
Raw materials | 2,454,919 | 1,955,713 |
Work in process | 1,798,152 | 2,394,481 |
Finished goods and filtration systems | 1,106,125 | 1,424,171 |
Reserve for obsolescence | (622,215) | (723,949) |
Net Inventory | $ 5,117,362 | $ 5,522,038 |
Note 3 - Leases (Details Textua
Note 3 - Leases (Details Textual) | 9 Months Ended | |
Sep. 30, 2021USD ($) | Sep. 01, 2021CNY (¥)a | |
Finance Lease, Principal Payments | $ 356,899 | |
Finance Lease Expense | 195,174 | |
Operating Lease, Payments | 766,896 | |
Operating Expense [Member] | ||
Operating Lease, Expense | $ 787,646 | |
CHINA | ||
Area of Real Estate Property (Acre) | a | 8,524 | |
Lease Contractual Agreement, Percentage, Discount | 50.00% | |
CHINA | Minimum [Member] | ||
Lessee, Operating Lease, Term of Contract (Year) | 8 years | |
CHINA | Effective to August 31 2025 [Member] | ||
Lease, Cost Per Square Meter | ¥ | ¥ 30 | |
CHINA | Effective on September 1 2025 [Member] | ||
Lease, Cost Per Square Meter | ¥ | ¥ 33 |
Note 3 - Leases - Balance Sheet
Note 3 - Leases - Balance Sheet Information (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Operating lease right-of-use | $ 7,246,422 | $ 4,947,734 |
Operating lease liabilities – current | 781,235 | 1,026,235 |
Operating lease liabilities – long-term | 6,485,282 | 4,159,225 |
Total operating lease liability | 7,266,517 | 5,185,460 |
Property and equipment, at cost | 4,545,747 | 4,819,201 |
Accumulated depreciation | (1,432,478) | (1,389,488) |
Property and equipment, net | 3,113,269 | 3,429,713 |
Finance lease liabilities – current | 379,726 | 394,839 |
Finance lease liabilities – long-term | 2,650,139 | 3,112,496 |
Total finance lease liability | $ 3,029,865 | $ 3,507,335 |
Operating leases (Year) | 9 years | 10 years |
Finance leases (Year) | 6 years 1 month 6 days | 6 years 10 months 24 days |
Operating leases | 6.50% | 6.20% |
Finance leases | 2.80% | 2.80% |
Note 3 - Leases - Maturities of
Note 3 - Leases - Maturities of Lease Liabilities (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
2021 (remaining 9 months), operating lease | $ 297,557 | |
2021 (remaining 9 months), finance lease | 115,213 | |
2022, operating lease | 1,264,956 | |
2022, finance lease | 459,223 | |
2023, operating lease | 1,284,566 | |
2023, finance lease | 454,417 | |
2024, operating lease | 1,130,863 | |
2024, finance lease | 455,396 | |
2025, operating lease | 835,749 | |
2025, finance lease | 451,685 | |
Thereafter, operating lease | 4,843,246 | |
Thereafter, finance lease | 1,410,832 | |
Total payment under operating lease agreements | 9,656,937 | |
Total payment under finance lease agreements | 3,346,766 | |
Less imputed interest on operating lease | (2,390,420) | |
Less imputed interest on finance lease | (316,901) | |
Total operating lease liability | 7,266,517 | $ 5,185,460 |
Total finance lease liability | $ 3,029,865 | $ 3,507,335 |
Note 4 - Lines of Credit (Detai
Note 4 - Lines of Credit (Details Textual) - Sep. 30, 2021 | USD ($) | DKK (kr) |
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,550,000 | kr 10,000,000 |
Guarantor Obligations, Current Carrying Value | 483,128 | |
Security Deposit | $ 1,500,000 |
Note 5 - Long-term Debt (Detail
Note 5 - Long-term Debt (Details Textual) | Mar. 01, 2022USD ($) | Apr. 09, 2021shares | Apr. 08, 2021USD ($)$ / sharesshares | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Sep. 30, 2021USD ($) |
Stock Issued During Period, Shares, Issued for Commitment Fee (in shares) | shares | 80,000 | 80,000 | |||||
Convertible Debt [Member] | |||||||
Debt Instrument, Face Amount | $ 15,000,000 | ||||||
Debt Instrument, Redemption Price, Percentage | 112.00% | ||||||
Debt Instrument, Convertible, Conversion Ratio | 0.1006749 | ||||||
Debt Conversion, Percent of Common Stock Price Value | 175.00% | ||||||
Debt Instrument, Redemption Covenant, Floor Price (in dollars per share) | $ / shares | $ 1.75 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | 5.00% | |||||
Interest Expense, Debt, Total | $ 481,712 | $ 0 | $ 0 | $ 904,350 | |||
Amortization of Debt Issuance Costs | $ 292,129 | $ 0 | $ 0 | $ 360,417 | |||
Convertible Debt [Member] | Forecast [Member] | |||||||
Debt Instrument, Periodic Payment, Principal | $ 840,000 |
Note 5 - Long-term Debt - Conve
Note 5 - Long-term Debt - Convertible Note (Details) - Convertible Debt [Member] - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Convertible note | $ 16,800,000 | $ 0 |
Less: unamortized debt issuance costs | (2,504,462) | 0 |
Convertible note payable | 14,295,538 | 0 |
Current portion of convertible note payable | 5,880,000 | 0 |
Convertible note payable, less current portion | $ 8,415,538 | $ 0 |
Note 6 - Agreements and Commi_3
Note 6 - Agreements and Commitments (Details Textual) | Feb. 27, 2019USD ($) | Feb. 27, 2019DKK (kr) | Nov. 20, 2018USD ($) | Nov. 20, 2018DKK (kr) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020DKK (kr) | Jun. 30, 2021 |
Defined Contribution Plan, Cost | $ 0 | $ 3,860 | $ 218 | $ 10,844 | |||||||
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 6 - Agreements and Commi_4
Note 6 - Agreements and Commitments - Changes in Warranty Obligations (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Balance at January 1 | $ 1,056,613 | $ 813,288 |
Warranty costs charged to cost of goods sold | 79,972 | 348,241 |
Utilization charges against reserve | (132,360) | (199,624) |
Release of accrual related to expired warranties | 0 | 0 |
Foreign currency effect | (58,302) | 94,708 |
Balance at the end of the period | $ 945,923 | $ 1,056,613 |
Note 7 - Earnings Per Share (De
Note 7 - Earnings Per Share (Details Textual) - shares | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Restricted Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 149,636 | |
Warrant [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 1,015,000 | |
Share-based Payment Arrangement, Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 0 | 0 |
Note 7 - Earnings Per Share - A
Note 7 - Earnings Per Share - Amounts Used in Computing Earnings Per Share (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Net (Loss) | $ (2,903,956) | $ (3,098,108) | $ (2,459,429) | $ (3,873,419) | $ (2,563,811) | $ 303,499 | $ (8,461,493) | $ (6,133,731) |
Weighted average number of common shares used in basic earnings per share (in shares) | 21,661,945 | 21,059,251 | ||||||
Effect of dilutive securities, stock options, RSUs, and warrants (in shares) | 0 | 0 | ||||||
Weighted average number of common shares and potential dilutive common shares outstanding used in dilutive earnings per share (in shares) | 21,661,945 | 21,059,251 |
Note 8 - Stockholders' Equity_2
Note 8 - Stockholders' Equity (Details Textual) - USD ($) | Sep. 03, 2021 | Aug. 17, 2021 | Apr. 09, 2021 | Apr. 08, 2021 | Feb. 26, 2021 | Jan. 06, 2021 | Sep. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2013 | May 21, 2020 |
Common Stock, Shares Authorized (in shares) | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | |||||||||||
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |||||||||||
Common Stock, Shares, Issued, Total (in shares) | 21,285,706 | 21,285,706 | 21,655,461 | 21,285,706 | 21,655,461 | 21,655,461 | |||||||||
Preferred Stock, Shares Authorized (in shares) | 2,500,000 | 2,500,000 | 2,500,000 | 2,500,000 | |||||||||||
Preferred Stock, Par or Stated Value Per Share (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |||||||||||
Preferred Stock, Shares Issued, Total (in shares) | 0 | 0 | 0 | 0 | |||||||||||
Stock Issued During Period, Value, Issued for Services | $ 45,000 | ||||||||||||||
Stock Issued During Period, Shares, Issued for Commitment Fee (in shares) | 80,000 | 80,000 | |||||||||||||
Class of Warrant or Right, Issued by Exchange, Shares (in shares) | 500,000 | 500,000 | |||||||||||||
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 | ||||||||||||||
The 2011 Stock Options Plan [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance (in shares) | 0 | 0 | 0 | ||||||||||||
Restricted Stock Units (RSUs) [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance (in shares) | 149,636 | 149,636 | 149,636 | 128,299 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 71,582 | ||||||||||||||
Share-based Payment Arrangement, Expense | $ 127,519 | $ 46,681 | $ 354,983 | $ 270,238 | |||||||||||
Share-based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount | $ 655,382 | $ 655,382 | $ 655,382 | ||||||||||||
Prefunded Warrants [Member] | |||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ 0.001 | ||||||||||||||
Director [Member] | |||||||||||||||
Stock Issued During Period, Shares, Issued for Services (in shares) | 8,333 | 11,218 | |||||||||||||
Stock Issued During Period, Value, Issued for Services | $ 70,000 | $ 57,500 | |||||||||||||
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) | 114,328 | ||||||||||||||
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 | 0 | 0 |
Note 8 - Stockholders' Equity -
Note 8 - Stockholders' Equity - Warrants (Details) - shares | Aug. 17, 2021 | Sep. 30, 2021 |
Warrants outstanding at January 1 (in shares) | 515,000 | |
Common stock exchanged to prefunded warrant (in shares) | 500,000 | 500,000 |
Exercises and conversions (in shares) | 0 | |
Warrants outstanding at September 30 (in shares) | 1,015,000 |
Note 8 - Stockholders' Equity_3
Note 8 - Stockholders' Equity - Share Incentive Plan Activity (Details) - Restricted Stock Units (RSUs) [Member] - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 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 | $ 0 | $ 283,541 |
Granted, units (in shares) | 71,582 | |
Granted, weighted average grant-date fair value (in dollars per share) | $ 7.51 | |
Vested and settled with share issuance, units (in shares) | (50,245) | |
Vested and settled with share issuance, weighted average grant-date fair value (in dollars per share) | $ (5.85) | |
Forfeited, units (in shares) | 0 | |
Forfeited, weighted average grant-date fair value (in dollars per share) | $ 0 | |
Outstanding, units (in shares) | 149,636 | 128,299 |
Outstanding, weighted average grant-date fair value (in dollars per share) | $ 6.59 | $ 5.79 |
Note 9 - Significant Customer_3
Note 9 - Significant Customers / Concentration / Disaggregated Revenue (Details Textual) - Geographic Concentration Risk [Member] - Assets, Total [Member] | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
DENMARK | ||
Concentration Risk, Percentage | 63.00% | 100.00% |
UNITED STATES | ||
Concentration Risk, Percentage | 31.00% | |
CHINA | ||
Concentration Risk, Percentage | 6.00% |
Note 9 - Significant Customer_4
Note 9 - Significant Customers / Concentration / Disaggregated Revenue - Concentration of Risk (Details) - Customer Concentration Risk [Member] | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Revenue Benchmark [Member] | Customer A [Member] | |||||
Concentration Risk, Percentage | 21.00% | ||||
Revenue Benchmark [Member] | Customer D [Member] | |||||
Concentration Risk, Percentage | 23.00% | 27.00% | |||
Revenue Benchmark [Member] | Customer B [Member] | |||||
Concentration Risk, Percentage | 11.00% | 11.00% | |||
Revenue Benchmark [Member] | Customer C [Member] | |||||
Concentration Risk, Percentage | 10.00% | ||||
Revenue Benchmark [Member] | Customer E [Member] | |||||
Concentration Risk, Percentage | 20.00% | 11.00% | |||
Accounts Receivable [Member] | Customer D [Member] | |||||
Concentration Risk, Percentage | 39.00% | ||||
Accounts Receivable [Member] | Customer B [Member] | |||||
Concentration Risk, Percentage | 16.00% | ||||
Accounts Receivable [Member] | Customer C [Member] | |||||
Concentration Risk, Percentage | 12.00% |
Note 10 - Segment Reporting - S
Note 10 - Segment Reporting - Summary of Segment Activity (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Revenue | $ 4,142,954 | $ 3,543,730 | $ 12,157,394 | $ 18,467,057 | |||||
Revenue | 4,142,954 | 3,543,730 | 12,157,394 | 18,467,057 | |||||
Net Income (Loss) | (2,903,956) | $ (3,098,108) | $ (2,459,429) | (3,873,419) | $ (2,563,811) | $ 303,499 | (8,461,493) | (6,133,731) | |
Segment assets | 48,393,553 | 48,393,553 | $ 42,210,137 | ||||||
Water Segment [Member] | |||||||||
Net Income (Loss) | (531,868) | (175,725) | (2,112,430) | (64,967) | |||||
Segment assets | 9,096,032 | 9,096,032 | 14,033,107 | ||||||
Water Segment [Member] | Operating Segments [Member] | |||||||||
Revenue | 1,493,549 | 1,925,879 | 3,730,889 | 12,127,421 | |||||
Revenue | 1,493,549 | 1,925,879 | 3,730,889 | 12,127,421 | |||||
Ceramics Segment [Member] | |||||||||
Net Income (Loss) | (798,615) | (622,504) | (2,681,013) | (1,598,205) | |||||
Segment assets | 17,048,081 | 17,048,081 | 16,734,371 | ||||||
Ceramics Segment [Member] | Operating Segments [Member] | |||||||||
Revenue | 1,703,057 | 989,601 | 5,444,863 | 4,367,591 | |||||
Revenue | 1,703,057 | 989,601 | 5,444,863 | 4,367,591 | |||||
Plastics Segment [Member] | Operating Segments [Member] | |||||||||
Revenue | 855,896 | 503,297 | 2,686,292 | 1,847,092 | |||||
Revenue | 855,896 | 503,297 | 2,686,292 | 1,847,092 | |||||
Plastic Products [Member] | |||||||||
Net Income (Loss) | (358,880) | (261,544) | (887,184) | (329,200) | |||||
Segment assets | 1,940,034 | 1,940,034 | 2,022,381 | ||||||
Other Segments [Member] | |||||||||
Net Income (Loss) | (1,214,593) | (2,813,646) | (2,780,866) | (4,141,359) | |||||
Segment assets | 20,309,406 | 20,309,406 | $ 9,420,278 | ||||||
Other Segments [Member] | Operating Segments [Member] | |||||||||
Revenue | 90,452 | 124,953 | 295,350 | 124,953 | |||||
Revenue | $ 90,452 | $ 124,953 | $ 295,350 | $ 124,953 |