Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 09, 2023 | |
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 | 2023 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
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 | |
Entity Address, Postal Zip Code | 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, $0.001 par value | |
Trading Symbol | LIQT | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 5,727,310 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Current Assets: | ||
Cash and restricted cash | $ 11,832,959 | $ 16,597,371 |
Accounts receivable, net of allowance for doubtful accounts of $48,909 and $59,559 at September 30, 2023 and December 31, 2022, respectively | 3,883,813 | 2,310,344 |
Inventories, net of allowance for excess and obsolete inventory of $898,944 and $663,227 at September 30, 2023 and December 31, 2022, respectively | 4,556,000 | 4,062,001 |
Contract assets | 2,587,397 | 2,253,295 |
Prepaid expenses and other current assets | 1,311,140 | 1,720,902 |
Assets held for sale | 394,623 | 723,872 |
Total Current Assets | 24,565,932 | 27,667,785 |
Long-Term Assets: | ||
Property and equipment, net of accumulated depreciation of $10,713,077 and $9,046,499 at September 30, 2023 and December 31, 2022, respectively | 8,640,532 | 8,296,807 |
Operating lease right-of-use assets | 2,827,101 | 3,271,997 |
Deposits and other assets | 446,149 | 450,038 |
Intangible assets, net of accumulated amortization of $509,641 and $438,250 at September 30, 2023 and December 31, 2022, respectively | 135,363 | 212,933 |
Goodwill | 223,951 | 226,095 |
Total Long-Term Assets | 12,273,096 | 12,457,870 |
Total Assets | 36,839,028 | 40,125,655 |
Current Liabilities: | ||
Accounts payable | 2,233,853 | 1,389,355 |
Accrued expenses | 3,847,849 | 3,087,206 |
Current portion of finance lease obligations | 558,961 | 399,198 |
Current portion of operating lease liabilities | 548,417 | 561,182 |
Contract liabilities | 540,153 | 649,557 |
Total Current Liabilities | 7,729,233 | 6,086,498 |
Deferred tax liability | 111,077 | 154,645 |
Finance lease obligations, net of current portion | 2,899,640 | 2,384,011 |
Operating lease liabilities, net of current portion | 2,278,684 | 2,710,815 |
Senior promissory notes payable, net of debt discount of $1,455,127 and $519,686 at September 30, 2023 and December 31, 2022, respectively | 4,544,873 | 5,480,314 |
Total Long-term Liabilities | 9,834,274 | 10,729,785 |
Total Liabilities | 17,563,507 | 16,816,283 |
Stockholders’ Equity: | ||
Preferred stock; par value $0.001, 2,500,000 shares authorized, 0 shares issued and outstanding at September 30, 2023 and December 31, 2022 | 0 | 0 |
Common stock; par value $0.001, 12,500,000 shares authorized, 5,727,310 and 5,498,260 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively | 5,727 | 5,498 |
Additional paid-in capital | 98,662,745 | 96,975,476 |
Accumulated deficit | (72,710,060) | (67,351,035) |
Accumulated other comprehensive loss | (6,682,891) | (6,320,567) |
Total Stockholders’ Equity | 19,275,521 | 23,309,372 |
Total Liabilities and Stockholders’ Equity | $ 36,839,028 | $ 40,125,655 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Accounts receivable, allowance for doubtful accounts | $ 48,909 | $ 59,559 |
Inventories, allowance for excess and obsolete inventory | 898,944 | 663,227 |
Property and equipment, accumulated depreciation | 10,713,077 | 9,046,499 |
Intangible assets, accumulated depreciations | 509,641 | 438,250 |
Debt discount | $ 1,455,127 | $ 519,686 |
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, authorized (in shares) | 12,500,000 | 12,500,000 |
Common stock, issued (in shares) | 5,727,310 | 5,498,260 |
Common stock, outstanding (in shares) | 5,727,310 | 5,498,260 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenue | $ 5,070,446 | $ 3,305,534 | $ 14,071,984 | $ 11,961,062 |
Cost of Goods Sold | 4,121,881 | 3,198,255 | 11,569,549 | 11,460,102 |
Gross Profit | 948,565 | 107,279 | 2,502,435 | 500,960 |
Operating Expenses: | ||||
Selling expenses | 965,039 | 676,420 | 3,175,699 | 2,932,881 |
General and administrative expenses | 1,253,779 | 1,429,315 | 3,690,211 | 4,611,375 |
Research and development expenses | 428,600 | 283,524 | 1,131,003 | 1,377,097 |
Restructuring costs | 0 | (1,964) | 0 | 1,786,863 |
Total Operating Expense | 2,647,418 | 2,387,295 | 7,996,913 | 10,708,216 |
Loss from Operations | (1,698,853) | (2,280,016) | (5,494,478) | (10,207,256) |
Other Income (Expense) | ||||
Interest and other income | 103,887 | 1,870 | 272,105 | 344,593 |
Interest expense | (34,734) | (28,514) | (92,633) | (394,532) |
Amortization discount on Notes | (86,447) | (84,098) | (257,765) | (2,304,054) |
Gain (Loss) on currency transactions | 287,437 | 628,137 | 170,653 | 361,928 |
Gain on lease termination | 0 | (3,317) | 0 | 150,258 |
Gain on sale of fixed assets | 0 | (19) | 0 | 642 |
Total Other Income (Expense) | 270,143 | 514,059 | 92,360 | (1,841,165) |
Loss Before Income Taxes | (1,428,710) | (1,765,957) | (5,402,118) | (12,048,421) |
Income Tax Benefit | 14,480 | 13,293 | 43,093 | 42,274 |
Net Loss | $ (1,414,230) | $ (1,752,664) | $ (5,359,025) | $ (12,006,147) |
Basic and Diluted Loss Per Share (in dollars per share) | $ (0.25) | $ (0.32) | $ (0.94) | $ (2.95) |
Basic and Diluted Weighted Average Common Shares Outstanding (in shares) | 5,705,729 | 5,486,475 | 5,684,430 | 4,066,144 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Net (Loss) | $ (1,414,230) | $ (1,752,664) | $ (5,359,025) | $ (12,006,147) |
Other Comprehensive Loss – Currency Translation, Net | (671,128) | (1,646,038) | (362,324) | (2,616,504) |
Total Comprehensive Loss | $ (2,085,358) | $ (3,398,702) | $ (5,721,349) | $ (14,622,651) |
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, 2021 | 2,660,713 | ||||
BALANCE at Dec. 31, 2021 | $ 2,661 | $ 70,929,526 | $ (53,181,928) | $ (4,975,399) | $ 12,774,860 |
Common Stock issued in settlement of RSUs (in shares) | 8,373 | ||||
Common Stock issued in settlement of RSUs | $ 8 | (8) | 0 | 0 | 0 |
Stock-based compensation | 0 | 178,778 | 0 | 0 | 178,778 |
Currency translation, net | 0 | 0 | 0 | (355,891) | (355,891) |
Net (Loss) | $ 0 | 0 | (3,746,424) | 0 | (3,746,424) |
BALANCE (in shares) at Mar. 31, 2022 | 2,669,086 | ||||
BALANCE at Mar. 31, 2022 | $ 2,669 | 71,108,296 | (56,928,352) | (5,331,290) | 8,851,323 |
BALANCE (in shares) at Dec. 31, 2021 | 2,660,713 | ||||
BALANCE at Dec. 31, 2021 | $ 2,661 | 70,929,526 | (53,181,928) | (4,975,399) | 12,774,860 |
Currency translation, net | (2,616,504) | ||||
Net (Loss) | (12,006,147) | ||||
BALANCE (in shares) at Sep. 30, 2022 | 5,487,109 | ||||
BALANCE at Sep. 30, 2022 | $ 5,487 | 96,823,424 | (65,188,075) | (7,591,903) | 24,048,934 |
BALANCE (in shares) at Mar. 31, 2022 | 2,669,086 | ||||
BALANCE at Mar. 31, 2022 | $ 2,669 | 71,108,296 | (56,928,352) | (5,331,290) | 8,851,323 |
Stock-based compensation | 0 | 221,472 | 0 | 0 | 221,472 |
Currency translation, net | 0 | 0 | 0 | (614,575) | (614,575) |
Net (Loss) | 0 | 0 | (6,507,059) | 0 | (6,507,059) |
Warrants issued in connection with Senior Promissory Notes | $ 0 | 664,704 | 0 | 0 | 664,704 |
Common shares issued for cash at $0.50 per share, net of offering cost of $1,996,469, in May 2022 (in shares) | 2,816,981 | ||||
Common shares issued for cash at $0.50 per share, net of offering cost of $1,996,469, in May 2022 | $ 2,817 | 24,450,711 | 0 | 0 | 24,453,528 |
Adjustment to warrants issued in connection with Senior Promissory Notes | $ 0 | (664,704) | 0 | 0 | (664,704) |
BALANCE (in shares) at Jun. 30, 2022 | 5,486,067 | ||||
BALANCE at Jun. 30, 2022 | $ 5,486 | 96,445,183 | (63,435,411) | (5,945,865) | 27,069,393 |
Common Stock issued in settlement of RSUs (in shares) | 1,042 | ||||
Common Stock issued in settlement of RSUs | $ 1 | (1) | 0 | 0 | 0 |
Stock-based compensation | 0 | 382,111 | 0 | 0 | 382,111 |
Currency translation, net | 0 | 0 | 0 | (1,646,038) | (1,646,038) |
Net (Loss) | 0 | 0 | (1,752,664) | 0 | (1,752,664) |
Warrants issued in connection with Senior Promissory Notes | 0 | 3,868 | 0 | 0 | 0 |
Adjustment to warrants issued in connection with Senior Promissory Notes | $ 0 | (3,868) | 0 | 0 | 0 |
BALANCE (in shares) at Sep. 30, 2022 | 5,487,109 | ||||
BALANCE at Sep. 30, 2022 | $ 5,487 | 96,823,424 | (65,188,075) | (7,591,903) | 24,048,934 |
BALANCE (in shares) at Dec. 31, 2022 | 5,498,260 | ||||
BALANCE at Dec. 31, 2022 | $ 5,498 | 96,975,476 | (67,351,035) | (6,320,567) | 23,309,372 |
Common Stock issued in settlement of RSUs (in shares) | 160,670 | ||||
Common Stock issued in settlement of RSUs | $ 161 | (161) | 0 | 0 | 0 |
Stock-based compensation | 0 | 157,173 | 0 | 0 | 157,173 |
Currency translation, net | 0 | 0 | 0 | 408,596 | 408,596 |
Net (Loss) | $ 0 | 0 | (2,389,503) | 0 | (2,389,503) |
BALANCE (in shares) at Mar. 31, 2023 | 5,658,930 | ||||
BALANCE at Mar. 31, 2023 | $ 5,659 | 97,132,488 | (69,740,538) | (5,911,971) | 21,485,638 |
BALANCE (in shares) at Dec. 31, 2022 | 5,498,260 | ||||
BALANCE at Dec. 31, 2022 | $ 5,498 | 96,975,476 | (67,351,035) | (6,320,567) | 23,309,372 |
Currency translation, net | (362,324) | ||||
Net (Loss) | (5,359,025) | ||||
BALANCE (in shares) at Sep. 30, 2023 | 5,727,310 | ||||
BALANCE at Sep. 30, 2023 | $ 5,727 | 98,662,745 | (72,710,060) | (6,682,891) | 19,275,521 |
BALANCE (in shares) at Mar. 31, 2023 | 5,658,930 | ||||
BALANCE at Mar. 31, 2023 | $ 5,659 | 97,132,488 | (69,740,538) | (5,911,971) | 21,485,638 |
Common Stock issued in settlement of RSUs (in shares) | 24,500 | ||||
Common Stock issued in settlement of RSUs | $ 24 | (24) | 0 | 0 | 0 |
Stock-based compensation | 0 | 193,924 | 0 | 0 | 193,924 |
Currency translation, net | 0 | 0 | 0 | (99,792) | (99,792) |
Net (Loss) | $ 0 | 0 | (1,555,292) | 0 | (1,555,292) |
Fractional shares from individual shareholder round-up following reverse split (in shares) | 16,796 | ||||
Fractional shares from individual shareholder round-up following reverse split | $ 17 | (17) | 0 | 0 | 0 |
BALANCE (in shares) at Jun. 30, 2023 | 5,700,226 | ||||
BALANCE at Jun. 30, 2023 | $ 5,700 | 97,326,371 | (71,295,830) | (6,011,763) | 20,024,478 |
Common Stock issued in settlement of RSUs (in shares) | 27,084 | ||||
Common Stock issued in settlement of RSUs | $ 27 | (27) | 0 | 0 | 0 |
Stock-based compensation | 0 | 143,195 | 0 | 0 | 143,195 |
Currency translation, net | 0 | 0 | 0 | (671,128) | (671,128) |
Net (Loss) | 0 | 0 | (1,414,230) | 0 | (1,414,230) |
Warrants issued in connection with Senior Promissory Notes | 0 | 1,193,206 | 0 | 0 | 1,193,206 |
Adjustment to warrants issued in connection with Senior Promissory Notes | $ 0 | (1,193,206) | 0 | 0 | (1,193,206) |
BALANCE (in shares) at Sep. 30, 2023 | 5,727,310 | ||||
BALANCE at Sep. 30, 2023 | $ 5,727 | $ 98,662,745 | $ (72,710,060) | $ (6,682,891) | $ 19,275,521 |
Condensed Consolidated Statem_4
Condensed Consolidated Statement of Stockholders' Equity (Unaudited) (Parentheticals) | 3 Months Ended |
Jun. 30, 2022 USD ($) $ / shares | |
Shares issued, offering cost per share (in dollars per share) | $ / shares | $ 0.5 |
Shares issued, offering cost | $ | $ 1,996,469 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash Flows from Operating Activities: | ||
Net Loss | $ (5,359,025) | $ (12,006,147) |
Adjustments to reconcile net loss to net cash provided by (used in) operations: | ||
Depreciation and amortization | 2,329,639 | 2,260,060 |
Amortization of discount on convertible notes payable | 257,765 | 2,304,054 |
Stock-based compensation | 494,292 | 782,361 |
Change in deferred tax asset / liability | (43,093) | (42,274) |
Gain on lease termination | 0 | (150,258) |
Gain on sale of fixed assets | 0 | (642) |
Changes in assets and liabilities: | ||
Accounts receivable | (1,632,953) | (1,262,577) |
Inventory | (545,083) | 5,728 |
Contract assets | (640,098) | (485,469) |
Prepaid expenses and other current assets | 405,001 | (1,497,612) |
Accounts payable | 877,608 | 212,304 |
Accrued expenses | 1,081,573 | (1,028,428) |
Operating lease liabilities | (423,587) | (409,008) |
Contract liabilities | (105,671) | (165,028) |
Assets held for sale | 329,969 | 0 |
Net Cash used in Operating Activities | (2,973,663) | (11,482,936) |
Cash Flows from Investing Activities: | ||
Purchase of property and equipment | (2,261,131) | (792,523) |
Proceeds from sale of fixed assets | 0 | 642 |
Net Cash used in Investing Activities | (2,261,131) | (791,881) |
Cash Flows from Financing Activities: | ||
Payments on finance lease obligation | (299,980) | (259,197) |
Proceeds from Sale and Leaseback Agreements | 1,018,307 | 0 |
Proceeds from issuance of Common Stock and prefunded warrants | 0 | 24,418,612 |
Proceeds from issuance of Senior Promissory Notes | 0 | 6,000,000 |
Payments on Convertible Note | 0 | (16,800,000) |
Net Cash provided by Financing Activities | 718,327 | 13,359,415 |
Gain (Loss) on Currency Translation | (247,945) | (968,601) |
Net change in Cash and Restricted Cash | (4,764,412) | 115,997 |
Cash and Restricted Cash at Beginning of Period | 16,597,371 | 17,489,380 |
Cash and Restricted Cash at End of Period | 11,832,959 | 17,605,377 |
Supplemental Disclosures of Cash Flow Information: | ||
Interest | 117,648 | 364,846 |
Non-cash financing activities | ||
Debt discount on Senior Promissory Notes | $ 1,193,206 | $ 695,749 |
Note 1 - Summary of Significant
Note 1 - Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
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 in Item 2, These interim consolidated financial statements are unaudited. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). These Condensed Consolidated Financial Statements should be read in conjunction with our financial statements and notes thereto included in our Annual Report on Form 10 December 31, 2022. September 30, 2023 not Consolidation – Reverse Stock Split May 26, 2023, 1 1 8 1 8 As a result of the reverse Common Stock split, an amount equal to the decreased value of Common Stock was reclassified from “Common Stock” to “Additional Paid-in Capital.” Functional Currency / Foreign Currency translation nine September 30, 2023 2022. Cash and Restricted Cash three September 30, 2023, December 31, 2022, Accounts held in each U.S. institution are insured by the Federal Deposit Insurance Company (“FDIC”) up to $250,000. September 30, 2023 December 31, 2022 Accounts Receivable The roll-forward of the allowance for doubtful accounts for the periods ended September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022 Allowance for doubtful accounts at the beginning of the period $ 59,559 $ 409,076 Bad debt expense - (24,534 ) Receivables written off during the periods (10,322 ) (295,778 ) Effect of currency translation (328 ) (29,205 ) Allowance for doubtful accounts at the end of the period $ 48,909 $ 59,559 Inventory first first For inventory produced, standard costs that approximate actual costs, applying 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 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 Assets Held for Sale 1 2 3 4 one 5 6 Leases 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 three nine September 30, 2023 2022: For the Three Months For the Nine Months Ended September 30, Ended September 30, 2023 2022 2023 2022 Americas $ 986,316 $ 382,573 $ 1,798,608 $ 861,260 Asia-Pacific 891,058 895,696 2,031,013 2,944,449 Europe 2,933,092 1,903,930 8,944,536 6,651,065 Middle East & Africa 259,980 123,335 1,297,827 1,504,288 $ 5,070,446 $ 3,305,534 $ 14,071,984 $ 11,961,062 The Company’s sales by product line are as follows for the three nine September 30, 2023 2022: For the Three Months For the Nine Months Ended September 30, Ended September 30, 2023 2022 2023 2022 Water $ 2,629,910 $ 785,046 $ 6,135,127 $ 3,522,049 Ceramics 1,608,763 1,854,981 4,807,600 5,548,951 Plastics 656,693 665,507 2,951,376 2,839,809 Corporate 175,080 - 177,881 50,253 $ 5,070,446 $ 3,305,534 $ 14,071,984 $ 11,961,062 For Water (systems and aftermarket), Ceramics (diesel particulate filters and membranes), and Plastics (components), revenue is recognized when performance obligations specified within 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 along with 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 spare parts, extended warranties, commissioning activities, 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 filtration systems. We measure the 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. The roll-forward of Contract assets / liabilities for the periods ended September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022 Cost incurred $ 4,176,466 $ 3,860,179 Unbilled project deliveries 941,767 950,105 VAT 242,831 229,006 Other receivables 107,607 45,814 Prepayments (3,357,497 ) (3,363,039 ) Deferred Revenue (63,930 ) (118,327 ) $ 2,047,244 $ 1,603,738 Distributed as follows: Contract assets $ 2,587,397 $ 2,253,295 Contract liabilities (540,153 ) (649,557 ) $ 2,047,244 $ 1,603,738 Advertising Cost three September 30, 2023, 2022 nine September 30, 2023, 2022, Research and Development Cost three September 30, 2023, 2022 nine September 30, 2023, 2022, Income Taxes 740, Income/(Loss) Per Share 260, not Stock Awards 718, 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, convertible notes payable, and senior promissory notes payable approximate their recorded values due to their short-term maturities. Accounting Estimates Recent Accounting Pronouncements not not |
Note 2 - Going Concern
Note 2 - Going Concern | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Substantial Doubt about Going Concern [Text Block] | NOTE 2 GOING CONCERN The accompanying consolidated financial statements have been prepared in conformity with generally accepted accounting principles of the United States of America, which contemplate continuation of the Company as a going concern; however, the Company has incurred significant recent losses, which raises substantial doubt about the ability of the Company to continue as a going concern for a period of one no not As of September 30, 2023, |
Note 3 - Inventory
Note 3 - Inventory | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | NOTE 3 INVENTORY Inventory consisted of the following on September 30, 2023, December 31, 2022: September 30, 2023 December 31, 2022 Furnace parts and supplies $ 60,826 $ 66,495 Raw materials 2,846,711 2,474,227 Work in process 1,305,301 982,973 Finished goods and filtration systems 1,242,106 1,201,533 Reserve for excess and obsolescence (898,944 ) (663,227 ) Net Inventory $ 4,556,000 $ 4,062,001 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 4 - Leases
Note 4 - Leases | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Lessee, Operating and Finance Leases [Text Block] | NOTE 4 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 leases for production and office space in Hobro, Aarhus, and Copenhagen, Denmark. During the nine September 30, 2023, During the nine September 30, 2023, Other information related to leases as of September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022 Operating leases Operating lease right-of-use assets $ 2,827,101 $ 3,271,997 Operating lease liabilities – current $ 548,417 $ 561,182 Operating lease liabilities – long-term 2,278,684 2,710,815 Total operating lease liabilities $ 2,827,101 $ 3,271,997 Finance leases Property and equipment, at cost $ 5,211,613 $ 3,877,955 Accumulated depreciation (765,434 ) (544,653 ) Property and equipment, net $ 4,446,179 $ 3,333,302 Finance lease liabilities – current $ 558,961 $ 399,198 Finance lease liabilities – long-term 2,899,640 2,384,011 Total finance lease liabilities $ 3,458,601 $ 2,783,209 Weighted average remaining lease term: Operating leases 9.6 9.6 Finance leases 4.9 5.4 Weighted average discount rate: Operating leases 6.1 % 6.2 % Finance leases 6.5 % 2.2 % Maturities of lease liabilities at September 30, 2023 Operating Lease Finance lease 2023 (remaining 3 months) $ 184,330 $ 190,998 2024 598,589 764,883 2025 312,017 761,497 2026 301,705 726,614 2027 301,705 1,259,360 Thereafter 2,036,507 463,845 Total payment under lease agreements 3,734,853 4,167,198 Less imputed interest (907,752 ) (708,597 ) Total lease liability $ 2,827,101 $ 3,458,601 |
Note 5 - Lines of Credit
Note 5 - Lines of Credit | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | NOTE 5 LINES OF CREDIT In connection with certain orders, we provide the customer with a working guarantee, prepayment guarantee, or a security bond. For that purpose, the Company has a credit line of EUR 850,000 (approximately $900,000) secured by a cash deposit, available for issuance of trade finance products. As of September 30, 2023, |
Note 6 - Long-term Debt
Note 6 - Long-term Debt | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Long-Term Debt [Text Block] | NOTE 6 LONG-TERM DEBT Convertible Note On March 24, 2021, October 1, 2023 April 8, 2021, The Convertible Note was a senior, unsecured obligation of the Company, payable at 112% of the principal amount at maturity ( October 1, 2023), $1,000 Beginning on March 1, 2022, first 90% three 3 10 no March 1, 2022, first As of June 22, 2022, The components of the Convertible Note are as follows: September 30, 2023 December 31, 2022 Convertible note $ - - Less: unamortized debt issuance costs - - Convertible note payable $ - $ - Current portion of convertible note payable - - Convertible note payable, less current portion - - Convertible note payable $ - $ - For the three September 30, 2023 2022, For the nine September 30, 2023 2022, Senior Promissory Notes On June 22, 2022, 21 April 21 April five The Notes have a term of 24 months and do not not second Additionally, as part of the transaction, the Company issued 28,846 warrants to the placement agent. The warrants issued in this transaction have an exercise price of $5.20 per share, a term of five As a result, the Company recorded an initial debt discount of $695,749, based on the relative fair value of the warrants and Notes issued. The Company determined the fair value of the warrants by using the Black-Scholes Option Pricing Model, with the following assumptions: expected term of 2.5 years, stock price of $3.44, exercise price of $5.20, volatility of 80.8%, risk-free rate of 3.13%, and no forfeiture rate. The debt discount will be accreted according to the effective interest method over the contractual term of the note. The warrants qualified for equity classification and were reported within Additional Paid-In Capital. On October 13, 2023, No. 1 September 30, 2023, June 20, 2024, January 1, 2026 ( “2023 2023 five September 30, 2023. 2023 June 22, 2022, As a result of the amendment, the Company recorded an initial debt discount of $1,193,206, based on the relative fair value of the warrants and Notes issued. The Company determined the fair value of the warrants by using the Black-Scholes Option Pricing Model, with the following assumptions: expected term of 5.0 years, stock price of $3.89, exercise price of $5.20, volatility of 73.66%, risk-free rate of 4.60%, and no The components of notes payable are as follows: September 30, 2023 December 31, 2022 Senior Promissory Notes $ 6,000,000 6,000,000 Less: unamortized debt discount (1,455,127 ) (519,686 ) Senior Promissory Notes payable $ 4,544,873 $ 5,480,314 Current portion of Senior Promissory Notes payable - - Senior Promissory Notes payable, less current portion 4,544,873 5,480,314 Senior Promissory Notes payable $ 4,544,873 $ 5,480,314 For the three September 30, 2023 2022, For the nine September 30, 2023 2022, |
Note 7 - Agreements and Commitm
Note 7 - Agreements and Commitments | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 7 AGREEMENTS AND COMMITMENTS Contingencies may In November 2022, 2019 2023. two 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, 2023 December 31, 2022, September 30, 2023 December 31, 2022 Balance at January 1 $ 898,072 $ 962,313 Warranty costs charged to cost of goods sold 91,609 86,256 Utilization charges against reserve (296,522 ) (93,653 ) Foreign currency effect (3,810 ) (56,844 ) Balance at the end of the period $ 689,349 $ 898,072 The utilization charges against the reserve for the nine September 30, 2023 |
Note 8 - Earnings Per Share
Note 8 - Earnings Per Share | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | NOTE 8 EARNINGS PER SHARE Basic and diluted net income (loss) per common share is determined by dividing net income (loss) by the weighted average number of shares of Common Stock outstanding during the period. For the periods where there is a net loss, stock options, warrants and Restricted Stock Units (“RSUs”) have been excluded from the calculation of diluted net loss per common share because their effect would be anti-dilutive. Consequently, the weighted average number of shares of Common Stock used to calculate both basic and diluted net loss per common share are the same for the reported periods. As of September 30, 2023, As of September 30, 2022, The following table shows the amounts used in computing earnings per share and the weighted average number of shares of potentially dilutive Common Stock for the three nine September 30, 2023 2022: For the Three Months For the Nine Months Ended September 30, Ended September 30, 2023 2022 2023 2022 Net (Loss) (1,414,230 ) (1,752,664 ) (5,359,025 ) (12,006,147 ) Weighted average number of common shares used in basic earnings per share 5,705,729 5,486,475 5,684,430 4,066,144 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 5,705,729 5,486,475 5,684,430 4,066,144 For the three nine September 30, 2023 2022, |
Note 9 - Stockholders' Equity
Note 9 - Stockholders' Equity | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Equity [Text Block] | NOTE 9 STOCKHOLDERS EQUITY Common Stock September 30, 2023 December 2022, Voting one not Dividends may may Liquidation Rights Other Matters no no Preferred Stock one may may The Company has 2,500,000 shares of authorized Preferred stock, $0.001 par value. As of September 30, 2023, Stock Issuance Since January 1, 2023, On January 3, 2023, 2022. December 31, 2022. On January 3, 2023, 2022. December 31, 2022. On June 26, 2023, 2023. June 30, 2023. On August 25, 2023, 2023. September 30, 2023. On September 12, 2023, 12 September 30, 2023. Warrants On May 17, 2022, $23,000,000 On June 22, 2022, 21 April 21 April five On October 13, 2023, September 30, 2023, June 20, 2024, January 1, 2026 ( five September 30, 2023. The following is a summary of the periodic changes in warrants outstanding for the nine September 30, 2023 2022: 2023 2022 Warrants outstanding at January 1 4,490,104 126,875 Warrants issued 531,250 4,363,229 Exercises and conversions - - Warrants outstanding at September 30 5,021,354 4,490,104 Stock-based Compensation In 2013, September 30, 2023, one In 2022, “2022 2022 September 30, 2023, 2022 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 $143,195 and $382,111 for the three September 30, 2023, 2022, nine September 30, 2023, 2022, September 30, 2023, A summary of the status of the RSUs as of September 30, 2023, September 30, 2023 Number of units Weighted Average Grant-Date Fair value Aggregated Intrinsic Value Outstanding, December 31, 2022 301,111 $ 4.80 $ - Granted 225,604 3.00 - Vested and settled with share issuance (212,253 ) (4.86 ) - Outstanding, September 30, 2023 314,462 $ 3.46 $ - |
Note 10 - Significant Customers
Note 10 - Significant Customers / Concentration / Disaggregated Revenue | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Concentration Risk Disclosure [Text Block] | NOTE 10 - 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, 2023 2022 2023 2022 Customer A 12 % * % * % * % Customer B * % 14 % * % 17 % Customer C * % 12 % * % * % Customer D * % 11 % * % * % Customer E * % * % * % 12 % * Zero or less than 10% The following table presents customers accounting for 10% September 30, 2023 December 31, 2022 Customer A 12 % * % Customer D * % 20 % Customer E 11 % 17 % Customer F * % 10 % * Zero or less than 10% As of September 30, 2023, December 31, 2022, |
Note 11 - Segment Reporting
Note 11 - Segment Reporting | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | NOTE 11 SEGMENT REPORTING The Company operates in three January 1, 2020, 2020. Segment information for the business areas is as follows: For the Three Months For the Nine Months Ended Ended September 30, September 30, 2023 2022 2023 2022 Revenue Water $ 2,629,910 $ 785,046 $ 6,135,127 $ 3,522,049 Ceramics 1,608,763 1,854,981 4,807,600 5,548,951 Plastics 656,693 665,507 2,951,376 2,839,809 Corporate 175,080 - 177,881 50,253 Total consolidated Revenue 5,070,446 3,305,534 14,071,984 11,961,062 For the Three Months For the Nine Months Ended Ended September 30, September 30, 2023 2022 2023 2022 Income (Loss) Water $ 177,446 $ (107,681 ) $ (283,590 ) $ (864,378 ) Ceramics (531,682 ) (772,862 ) (1,532,455 ) (3,519,182 ) Plastics (365,978 ) (152,492 ) (499,312 ) (392,092 ) Corporate (694,016 ) (719,629 ) (3,043,668 ) (7,230,495 ) Total consolidated Loss (1,414,230 ) (1,752,664 ) (5,359,025 ) (12,006,147 ) As of Total Assets September 30, 2023 December 31, 2022 Water $ 9,114,839 $ 7,781,211 Ceramics 14,900,727 13,808,529 Plastics 894,434 1,099,019 Corporate 11,929,028 17,436,896 Total consolidated Assets $ 36,839,028 $ 40,125,655 |
Note 12 - Subsequent Events
Note 12 - Subsequent Events | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | NOTE 12 - SUBSEQUENT EVENTS None |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
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 in Item 2, These interim consolidated financial statements are unaudited. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). These Condensed Consolidated Financial Statements should be read in conjunction with our financial statements and notes thereto included in our Annual Report on Form 10 December 31, 2022. September 30, 2023 not |
Consolidation, Policy [Policy Text Block] | Consolidation – |
Reverse Stock Split [Policy Text Block] | Reverse Stock Split May 26, 2023, 1 1 8 1 8 As a result of the reverse Common Stock split, an amount equal to the decreased value of Common Stock was reclassified from “Common Stock” to “Additional Paid-in Capital.” |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Functional Currency / Foreign Currency translation nine September 30, 2023 2022. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Restricted Cash three September 30, 2023, December 31, 2022, Accounts held in each U.S. institution are insured by the Federal Deposit Insurance Company (“FDIC”) up to $250,000. September 30, 2023 December 31, 2022 |
Accounts Receivable [Policy Text Block] | Accounts Receivable The roll-forward of the allowance for doubtful accounts for the periods ended September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022 Allowance for doubtful accounts at the beginning of the period $ 59,559 $ 409,076 Bad debt expense - (24,534 ) Receivables written off during the periods (10,322 ) (295,778 ) Effect of currency translation (328 ) (29,205 ) Allowance for doubtful accounts at the end of the period $ 48,909 $ 59,559 |
Inventory, Policy [Policy Text Block] | Inventory first first For inventory produced, standard costs that approximate actual costs, applying 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 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 |
Assets Held for Sale [Policy Text Block] | Assets Held for Sale 1 2 3 4 one 5 6 |
Lessee, Leases [Policy Text Block] | Leases 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 [Policy Text Block] | Revenue Recognition three nine September 30, 2023 2022: For the Three Months For the Nine Months Ended September 30, Ended September 30, 2023 2022 2023 2022 Americas $ 986,316 $ 382,573 $ 1,798,608 $ 861,260 Asia-Pacific 891,058 895,696 2,031,013 2,944,449 Europe 2,933,092 1,903,930 8,944,536 6,651,065 Middle East & Africa 259,980 123,335 1,297,827 1,504,288 $ 5,070,446 $ 3,305,534 $ 14,071,984 $ 11,961,062 The Company’s sales by product line are as follows for the three nine September 30, 2023 2022: For the Three Months For the Nine Months Ended September 30, Ended September 30, 2023 2022 2023 2022 Water $ 2,629,910 $ 785,046 $ 6,135,127 $ 3,522,049 Ceramics 1,608,763 1,854,981 4,807,600 5,548,951 Plastics 656,693 665,507 2,951,376 2,839,809 Corporate 175,080 - 177,881 50,253 $ 5,070,446 $ 3,305,534 $ 14,071,984 $ 11,961,062 For Water (systems and aftermarket), Ceramics (diesel particulate filters and membranes), and Plastics (components), revenue is recognized when performance obligations specified within 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 along with 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 spare parts, extended warranties, commissioning activities, 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 filtration systems. We measure the 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. The roll-forward of Contract assets / liabilities for the periods ended September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022 Cost incurred $ 4,176,466 $ 3,860,179 Unbilled project deliveries 941,767 950,105 VAT 242,831 229,006 Other receivables 107,607 45,814 Prepayments (3,357,497 ) (3,363,039 ) Deferred Revenue (63,930 ) (118,327 ) $ 2,047,244 $ 1,603,738 Distributed as follows: Contract assets $ 2,587,397 $ 2,253,295 Contract liabilities (540,153 ) (649,557 ) |
Advertising Cost [Policy Text Block] | Advertising Cost three September 30, 2023, 2022 nine September 30, 2023, 2022, |
Research and Development Expense, Policy [Policy Text Block] | Research and Development Cost three September 30, 2023, 2022 nine September 30, 2023, 2022, |
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 Awards 718, |
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, convertible notes payable, and senior promissory 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 not not |
Note 1 - Summary of Significa_2
Note 1 - Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Financing Receivable, Allowance for Credit Loss [Table Text Block] | September 30, 2023 December 31, 2022 Allowance for doubtful accounts at the beginning of the period $ 59,559 $ 409,076 Bad debt expense - (24,534 ) Receivables written off during the periods (10,322 ) (295,778 ) Effect of currency translation (328 ) (29,205 ) Allowance for doubtful accounts at the end of the period $ 48,909 $ 59,559 |
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, 2023 2022 2023 2022 Americas $ 986,316 $ 382,573 $ 1,798,608 $ 861,260 Asia-Pacific 891,058 895,696 2,031,013 2,944,449 Europe 2,933,092 1,903,930 8,944,536 6,651,065 Middle East & Africa 259,980 123,335 1,297,827 1,504,288 $ 5,070,446 $ 3,305,534 $ 14,071,984 $ 11,961,062 |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | For the Three Months For the Nine Months Ended September 30, Ended September 30, 2023 2022 2023 2022 Water $ 2,629,910 $ 785,046 $ 6,135,127 $ 3,522,049 Ceramics 1,608,763 1,854,981 4,807,600 5,548,951 Plastics 656,693 665,507 2,951,376 2,839,809 Corporate 175,080 - 177,881 50,253 $ 5,070,446 $ 3,305,534 $ 14,071,984 $ 11,961,062 |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Table Text Block] | September 30, 2023 December 31, 2022 Cost incurred $ 4,176,466 $ 3,860,179 Unbilled project deliveries 941,767 950,105 VAT 242,831 229,006 Other receivables 107,607 45,814 Prepayments (3,357,497 ) (3,363,039 ) Deferred Revenue (63,930 ) (118,327 ) $ 2,047,244 $ 1,603,738 Distributed as follows: Contract assets $ 2,587,397 $ 2,253,295 Contract liabilities (540,153 ) (649,557 ) |
Note 3 - Inventory (Tables)
Note 3 - Inventory (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | September 30, 2023 December 31, 2022 Furnace parts and supplies $ 60,826 $ 66,495 Raw materials 2,846,711 2,474,227 Work in process 1,305,301 982,973 Finished goods and filtration systems 1,242,106 1,201,533 Reserve for excess and obsolescence (898,944 ) (663,227 ) Net Inventory $ 4,556,000 $ 4,062,001 |
Note 4 - Leases (Tables)
Note 4 - Leases (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Lessee, Operating and Finance Lease, Assets and Liabilities [Table Text Block] | September 30, 2023 December 31, 2022 Operating leases Operating lease right-of-use assets $ 2,827,101 $ 3,271,997 Operating lease liabilities – current $ 548,417 $ 561,182 Operating lease liabilities – long-term 2,278,684 2,710,815 Total operating lease liabilities $ 2,827,101 $ 3,271,997 Finance leases Property and equipment, at cost $ 5,211,613 $ 3,877,955 Accumulated depreciation (765,434 ) (544,653 ) Property and equipment, net $ 4,446,179 $ 3,333,302 Finance lease liabilities – current $ 558,961 $ 399,198 Finance lease liabilities – long-term 2,899,640 2,384,011 Total finance lease liabilities $ 3,458,601 $ 2,783,209 Weighted average remaining lease term: Operating leases 9.6 9.6 Finance leases 4.9 5.4 Weighted average discount rate: Operating leases 6.1 % 6.2 % Finance leases 6.5 % 2.2 % |
Maturity of Operating and Finance Lease Liabilities [Table Text Block] | Operating Lease Finance lease 2023 (remaining 3 months) $ 184,330 $ 190,998 2024 598,589 764,883 2025 312,017 761,497 2026 301,705 726,614 2027 301,705 1,259,360 Thereafter 2,036,507 463,845 Total payment under lease agreements 3,734,853 4,167,198 Less imputed interest (907,752 ) (708,597 ) Total lease liability $ 2,827,101 $ 3,458,601 |
Note 6 - Long-term Debt (Tables
Note 6 - Long-term Debt (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Convertible Debt [Table Text Block] | September 30, 2023 December 31, 2022 Convertible note $ - - Less: unamortized debt issuance costs - - Convertible note payable $ - $ - Current portion of convertible note payable - - Convertible note payable, less current portion - - Convertible note payable $ - $ - |
Schedule of Debt [Table Text Block] | September 30, 2023 December 31, 2022 Senior Promissory Notes $ 6,000,000 6,000,000 Less: unamortized debt discount (1,455,127 ) (519,686 ) Senior Promissory Notes payable $ 4,544,873 $ 5,480,314 Current portion of Senior Promissory Notes payable - - Senior Promissory Notes payable, less current portion 4,544,873 5,480,314 Senior Promissory Notes payable $ 4,544,873 $ 5,480,314 |
Note 7 - Agreements and Commi_2
Note 7 - Agreements and Commitments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Schedule of Product Warranty Liability [Table Text Block] | September 30, 2023 December 31, 2022 Balance at January 1 $ 898,072 $ 962,313 Warranty costs charged to cost of goods sold 91,609 86,256 Utilization charges against reserve (296,522 ) (93,653 ) Foreign currency effect (3,810 ) (56,844 ) Balance at the end of the period $ 689,349 $ 898,072 |
Note 8 - Earnings Per Share (Ta
Note 8 - Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Schedule of Weighted Average Number of Shares [Table Text Block] | For the Three Months For the Nine Months Ended September 30, Ended September 30, 2023 2022 2023 2022 Net (Loss) (1,414,230 ) (1,752,664 ) (5,359,025 ) (12,006,147 ) Weighted average number of common shares used in basic earnings per share 5,705,729 5,486,475 5,684,430 4,066,144 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 5,705,729 5,486,475 5,684,430 4,066,144 |
Note 9 - Stockholders' Equity (
Note 9 - Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block] | 2023 2022 Warrants outstanding at January 1 4,490,104 126,875 Warrants issued 531,250 4,363,229 Exercises and conversions - - Warrants outstanding at September 30 5,021,354 4,490,104 |
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | September 30, 2023 Number of units Weighted Average Grant-Date Fair value Aggregated Intrinsic Value Outstanding, December 31, 2022 301,111 $ 4.80 $ - Granted 225,604 3.00 - Vested and settled with share issuance (212,253 ) (4.86 ) - Outstanding, September 30, 2023 314,462 $ 3.46 $ - |
Note 10 - Significant Custome_2
Note 10 - Significant Customers / Concentration / Disaggregated Revenue (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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, 2023 2022 2023 2022 Customer A 12 % * % * % * % Customer B * % 14 % * % 17 % Customer C * % 12 % * % * % Customer D * % 11 % * % * % Customer E * % * % * % 12 % September 30, 2023 December 31, 2022 Customer A 12 % * % Customer D * % 20 % Customer E 11 % 17 % Customer F * % 10 % |
Note 11 - Segment Reporting (Ta
Note 11 - Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | For the Three Months For the Nine Months Ended Ended September 30, September 30, 2023 2022 2023 2022 Revenue Water $ 2,629,910 $ 785,046 $ 6,135,127 $ 3,522,049 Ceramics 1,608,763 1,854,981 4,807,600 5,548,951 Plastics 656,693 665,507 2,951,376 2,839,809 Corporate 175,080 - 177,881 50,253 Total consolidated Revenue 5,070,446 3,305,534 14,071,984 11,961,062 For the Three Months For the Nine Months Ended Ended September 30, September 30, 2023 2022 2023 2022 Income (Loss) Water $ 177,446 $ (107,681 ) $ (283,590 ) $ (864,378 ) Ceramics (531,682 ) (772,862 ) (1,532,455 ) (3,519,182 ) Plastics (365,978 ) (152,492 ) (499,312 ) (392,092 ) Corporate (694,016 ) (719,629 ) (3,043,668 ) (7,230,495 ) Total consolidated Loss (1,414,230 ) (1,752,664 ) (5,359,025 ) (12,006,147 ) As of Total Assets September 30, 2023 December 31, 2022 Water $ 9,114,839 $ 7,781,211 Ceramics 14,900,727 13,808,529 Plastics 894,434 1,099,019 Corporate 11,929,028 17,436,896 Total consolidated Assets $ 36,839,028 $ 40,125,655 |
Note 1 - Summary of Significa_3
Note 1 - Summary of Significant Accounting Policies (Details Textual) | 3 Months Ended | 9 Months Ended | |||||
May 26, 2023 $ / shares | Sep. 30, 2023 USD ($) $ / shares | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) $ / shares | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) $ / shares | Apr. 08, 2021 $ / shares | |
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | ||
Restricted Cash and Cash Equivalents, Current | $ 901,437 | $ 901,437 | $ 1,440,394 | ||||
Cash, Uninsured Amount | 0 | 0 | $ 12,999,271 | ||||
Advertising Expense | 7,372 | $ 39,094 | 52,138 | $ 142,522 | |||
Research and Development Expense | $ 428,600 | $ 283,524 | $ 1,131,003 | $ 1,377,097 | |||
Customer Relationships [Member] | |||||||
Finite-Lived Intangible Asset, Useful Life (Year) | 5 years | 5 years | |||||
Minimum [Member] | |||||||
Property, Plant and Equipment, Useful Life (Year) | 3 years | 3 years | |||||
Finite-Lived Intangible Asset, Useful Life (Year) | 1 year | 1 year | |||||
Maximum [Member] | |||||||
Property, Plant and Equipment, Useful Life (Year) | 10 years | 10 years | |||||
Finite-Lived Intangible Asset, Useful Life (Year) | 10 years | 10 years | |||||
Reverse Stock Split [Member] | |||||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 8 |
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, 2023 | Dec. 31, 2022 | |
Allowance for doubtful accounts | $ 59,559 | $ 409,076 |
Bad debt expense | 0 | (24,534) |
Receivables written off during the periods | (10,322) | (295,778) |
Effect of currency translation | (328) | (29,205) |
Allowance for doubtful accounts | $ 48,909 | $ 59,559 |
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, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenue | $ 5,070,446 | $ 3,305,534 | $ 14,071,984 | $ 11,961,062 |
Reportable Geographical Components [Member] | Americas [Member] | ||||
Revenue | 986,316 | 382,573 | 1,798,608 | 861,260 |
Reportable Geographical Components [Member] | Asia Pacific [Member] | ||||
Revenue | 891,058 | 895,696 | 2,031,013 | 2,944,449 |
Reportable Geographical Components [Member] | Europe [Member] | ||||
Revenue | 2,933,092 | 1,903,930 | 8,944,536 | 6,651,065 |
Reportable Geographical Components [Member] | Middle East and Africa [Member] | ||||
Revenue | $ 259,980 | $ 123,335 | $ 1,297,827 | $ 1,504,288 |
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, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenue | $ 5,070,446 | $ 3,305,534 | $ 14,071,984 | $ 11,961,062 |
Water Segment [Member] | ||||
Revenue | 2,629,910 | 785,046 | 6,135,127 | 3,522,049 |
Ceramics Segment [Member] | ||||
Revenue | 1,608,763 | 1,854,981 | 4,807,600 | 5,548,951 |
Plastics Segment [Member] | ||||
Revenue | 656,693 | 665,507 | 2,951,376 | 2,839,809 |
Corporate Segment [Member] | ||||
Revenue | $ 175,080 | $ 0 | $ 177,881 | $ 50,253 |
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, 2023 | Dec. 31, 2022 | |
Cost incurred | $ 4,176,466 | $ 3,860,179 |
Unbilled project deliveries | 941,767 | 950,105 |
VAT | 242,831 | 229,006 |
Other receivables | 107,607 | 45,814 |
Prepayments | (3,357,497) | (3,363,039) |
Deferred Revenue | (63,930) | (118,327) |
Contract with Customer, Asset (Liability), Net | 2,047,244 | 1,603,738 |
Contract assets | 2,587,397 | 2,253,295 |
Contract liabilities | (540,153) | (649,557) |
Contract with Customer, Asset (Liability), Net | $ 2,047,244 | $ 1,603,738 |
Note 2 - Going Concern (Details
Note 2 - Going Concern (Details Textual) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Cash and Cash Equivalents, at Carrying Value | $ 11,832,959 | |
Working Capital Deficit | 16,836,699 | |
Retained Earnings (Accumulated Deficit) | (72,710,060) | $ (67,351,035) |
Assets | 36,839,028 | 40,125,655 |
Liabilities | $ 17,563,507 | $ 16,816,283 |
Note 3 - Inventory - Summary of
Note 3 - Inventory - Summary of Inventory (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Furnace parts and supplies | $ 60,826 | $ 66,495 |
Raw materials | 2,846,711 | 2,474,227 |
Work in process | 1,305,301 | 982,973 |
Finished goods and filtration systems | 1,242,106 | 1,201,533 |
Reserve for excess and obsolescence | (898,944) | (663,227) |
Net Inventory | $ 4,556,000 | $ 4,062,001 |
Note 4 - Leases (Details Textua
Note 4 - Leases (Details Textual) | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Finance Lease, Principal Payments | $ 406,235 |
Finance Lease Expense | 335,342 |
Operating Lease, Payments | 567,544 |
Operating Lease, Expense | $ 567,544 |
Note 4 - Leases - Balance Sheet
Note 4 - Leases - Balance Sheet Information (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Operating lease right-of-use assets | $ 2,827,101 | $ 3,271,997 |
Operating lease liabilities – current | 548,417 | 561,182 |
Operating lease liabilities – long-term | 2,278,684 | 2,710,815 |
Total operating lease liability | 2,827,101 | 3,271,997 |
Property and equipment, at cost | 5,211,613 | 3,877,955 |
Accumulated depreciation | (765,434) | (544,653) |
Finance lease liabilities – current | 558,961 | 399,198 |
Finance lease liabilities – long-term | 2,899,640 | 2,384,011 |
Total finance lease liabilities | $ 3,458,601 | $ 2,783,209 |
Operating leases (Year) | 9 years 7 months 6 days | 9 years 7 months 6 days |
Finance leases (Year) | 4 years 10 months 24 days | 5 years 4 months 24 days |
Operating leases | 6.10% | 6.20% |
Finance leases | 6.50% | 2.20% |
Property and equipment, Net [Member] | ||
Property and equipment, net | $ 4,446,179 | $ 3,333,302 |
Note 4 - Leases - Maturities of
Note 4 - Leases - Maturities of Lease Liabilities (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
2023 (remaining 9 months), operating lease | $ 184,330 | |
2023 (remaining 9 months), finance lease | 190,998 | |
2024, operating lease | 598,589 | |
2024, finance lease | 764,883 | |
2025, operating lease | 312,017 | |
2025, finance lease | 761,497 | |
2026, operating lease | 301,705 | |
2026, finance lease | 726,614 | |
2027, operating lease | 301,705 | |
2027, finance lease | 1,259,360 | |
Thereafter, operating lease | 2,036,507 | |
Thereafter, finance lease | 463,845 | |
Total payment under operating lease agreements | 3,734,853 | |
Total payment under lease agreements | 4,167,198 | |
Less imputed interest on operating lease | (907,752) | |
Less imputed interest on finance lease | (708,597) | |
Total operating lease liability | 2,827,101 | $ 3,271,997 |
Total finance lease liability | $ 3,458,601 | $ 2,783,209 |
Note 5 - Lines of Credit (Detai
Note 5 - Lines of Credit (Details Textual) - Sep. 30, 2023 | USD ($) | EUR (€) |
Line of Credit Facility, Maximum Borrowing Capacity | $ 900,000 | € 850,000 |
Guarantor Obligations, Current Carrying Value | $ 47,141 |
Note 6 - Long-term Debt (Detail
Note 6 - Long-term Debt (Details Textual) | 3 Months Ended | 9 Months Ended | ||||||||
Jun. 22, 2022 USD ($) $ / shares shares | Mar. 01, 2022 USD ($) | Apr. 08, 2021 USD ($) $ / shares shares | Sep. 30, 2023 USD ($) $ / shares shares | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) $ / shares shares | Sep. 30, 2022 USD ($) | Oct. 13, 2023 USD ($) | May 26, 2023 $ / shares | Dec. 31, 2022 USD ($) $ / shares | |
Stock Issued During Period, Shares, Issued for Commitment Fee (in shares) | shares | 10,000 | |||||||||
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |||||
Senior Promissory Notes Placement Agent Warrants [Member] | ||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares) | shares | 28,846 | |||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ / shares | $ 5.2 | |||||||||
Warrants and Rights Outstanding, Term (Year) | 5 years | |||||||||
The 2023 Warrants [Member] | ||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares) | shares | 531,250 | 531,250 | ||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ / shares | $ 5.2 | $ 5.2 | ||||||||
Warrants and Rights Outstanding, Term (Year) | 5 years | 5 years | ||||||||
Senior Promissory Notes [Member] | ||||||||||
Debt Instrument, Face Amount | $ 6,000,000 | $ 6,000,000 | $ 6,000,000 | $ 6,000,000 | ||||||
Interest Expense, Debt | 0 | $ 0 | 0 | $ 0 | ||||||
Amortization of Debt Issuance Costs | 86,447 | 84,098 | 257,765 | 90,989 | ||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares) | shares | 531,250 | |||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ / shares | $ 5.2 | |||||||||
Warrants and Rights Outstanding, Term (Year) | 5 years | |||||||||
Debt Instrument, Term (Month) | 24 months | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 10% | |||||||||
Debt Instrument, Stated Rate, Monthly Increase if Unpaid | 1% | |||||||||
Debt Instrument, Unamortized Discount | $ 695,749 | 1,455,127 | 1,455,127 | $ 519,686 | ||||||
Senior Promissory Notes [Member] | Subsequent Event [Member] | ||||||||||
Debt Instrument, Unamortized Discount | $ 1,193,206 | |||||||||
Senior Promissory Notes [Member] | Measurement Input, Expected Term [Member] | ||||||||||
Debt Instrument, Measurement Input | 2.5 | |||||||||
Senior Promissory Notes [Member] | Measurement Input, Expected Term [Member] | Subsequent Event [Member] | ||||||||||
Debt Instrument, Measurement Input | 5 | |||||||||
Senior Promissory Notes [Member] | Measurement Input, Share Price [Member] | ||||||||||
Debt Instrument, Measurement Input | 3.44 | |||||||||
Senior Promissory Notes [Member] | Measurement Input, Share Price [Member] | Subsequent Event [Member] | ||||||||||
Debt Instrument, Measurement Input | 3.89 | |||||||||
Senior Promissory Notes [Member] | Measurement Input, Exercise Price [Member] | ||||||||||
Debt Instrument, Measurement Input | 5.2 | |||||||||
Senior Promissory Notes [Member] | Measurement Input, Exercise Price [Member] | Subsequent Event [Member] | ||||||||||
Debt Instrument, Measurement Input | 5.2 | |||||||||
Senior Promissory Notes [Member] | Measurement Input, Price Volatility [Member] | ||||||||||
Debt Instrument, Measurement Input | 0.808 | |||||||||
Senior Promissory Notes [Member] | Measurement Input, Price Volatility [Member] | Subsequent Event [Member] | ||||||||||
Debt Instrument, Measurement Input | 0.7366 | |||||||||
Senior Promissory Notes [Member] | Measurement Input, Risk Free Interest Rate [Member] | ||||||||||
Debt Instrument, Measurement Input | 0.0313 | |||||||||
Senior Promissory Notes [Member] | Measurement Input, Risk Free Interest Rate [Member] | Subsequent Event [Member] | ||||||||||
Debt Instrument, Measurement Input | 0.046 | |||||||||
Senior Promissory Notes [Member] | Measurement Input, Forfeiture Rate [Member] | ||||||||||
Debt Instrument, Measurement Input | 0 | |||||||||
Senior Promissory Notes [Member] | Measurement Input, Forfeiture Rate [Member] | Subsequent Event [Member] | ||||||||||
Debt Instrument, Measurement Input | 0 | |||||||||
Senior Promissory Notes [Member] | Maximum [Member] | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 16% | |||||||||
Convertible Debt [Member] | ||||||||||
Debt Instrument, Face Amount | $ 15,000,000 | |||||||||
Debt Instrument, Redemption Price, Percentage | 112% | |||||||||
Debt Instrument, Convertible, Conversion Ratio | 805.3992 | |||||||||
Debt Instrument, Periodic Payment, Principal | $ 840,000 | |||||||||
Debt Instrument, Redemption Covenant, Floor Price (in dollars per share) | $ / shares | $ 14 | |||||||||
Repayments of Convertible Debt | $ 13,446,875 | $ 840,000 | ||||||||
Repayments of Convertible Debt, Principal | 11,640,000 | |||||||||
Repayments of Convertible Debt, Premium | $ 1,806,875 | |||||||||
Interest Expense, Debt | 0 | 0 | 308,958 | |||||||
Amortization of Debt Issuance Costs | $ 0 | $ 0 | $ 0 | $ 2,213,065 |
Note 6 - Long-term Debt - Sched
Note 6 - Long-term Debt - Schedule of Convertible Note Payable (Details) - Convertible Debt [Member] - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Convertible note | $ 0 | $ 0 |
Less: unamortized debt issuance costs | 0 | 0 |
Convertible note payable | 0 | 0 |
Current portion of convertible note payable | 0 | 0 |
Convertible note payable, less current portion | $ 0 | $ 0 |
Note 6 - Long-term Debt - Notes
Note 6 - Long-term Debt - Notes Payable (Details) - Senior Promissory Notes [Member] - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 | Jun. 22, 2022 |
Senior Promissory Notes | $ 6,000,000 | $ 6,000,000 | $ 6,000,000 |
Less: unamortized debt discount | (1,455,127) | (519,686) | $ (695,749) |
Senior Promissory Notes payable | 4,544,873 | 5,480,314 | |
Current portion of Senior Promissory Notes payable | 0 | 0 | |
Senior Promissory Notes payable, less current portion | $ 4,544,873 | $ 5,480,314 |
Note 7 - Agreements and Commi_3
Note 7 - Agreements and Commitments (Details Textual) | 9 Months Ended |
Sep. 30, 2023 | |
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 |
Note 7 - Agreements and Commi_4
Note 7 - Agreements and Commitments - Changes in Warranty Obligations (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Balance | $ 898,072 | $ 962,313 |
Warranty costs charged to cost of goods sold | 91,609 | 86,256 |
Utilization charges against reserve | (296,522) | (93,653) |
Foreign currency effect | (3,810) | (56,844) |
Balance | $ 689,349 | $ 898,072 |
Note 8 - Earnings Per Share (De
Note 8 - Earnings Per Share (Details Textual) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Restricted Stock Units (RSUs) [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 314,462 | 313,043 | ||
Prefunded Warrants [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 3,930,008 | 3,930,008 | ||
Warrant [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 1,091,346 | 560,096 | ||
Share-Based Payment Arrangement, Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 0 | 0 | 0 | 0 |
Note 8 - Earnings Per Share - A
Note 8 - Earnings Per Share - Amounts Used in Computing Earnings Per Share (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Net (Loss) | $ (1,414,230) | $ (1,555,292) | $ (2,389,503) | $ (1,752,664) | $ (6,507,059) | $ (3,746,424) | $ (5,359,025) | $ (12,006,147) |
Weighted average number of common shares used in basic earnings per share (in shares) | 5,705,729 | 5,486,475 | 5,684,430 | 4,066,144 | ||||
Effect of dilutive securities, stock options, RSUs, and warrants (in shares) | 0 | 0 | 0 | 0 | ||||
Weighted average number of common shares and potential dilutive common shares outstanding used in dilutive earnings per share (in shares) | 5,705,729 | 5,486,475 | 5,684,430 | 4,066,144 |
Note 9 - Stockholders' Equity_2
Note 9 - Stockholders' Equity (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||
Sep. 30, 2023 | Sep. 12, 2023 | Aug. 25, 2023 | Jun. 26, 2023 | Jan. 03, 2023 | Jun. 23, 2022 | May 17, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2013 | May 26, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Apr. 08, 2021 | |
Common Stock, Shares Authorized (in shares) | 12,500,000 | 12,500,000 | 12,500,000 | 12,500,000 | ||||||||||||
Common Stock, Shares, Issued (in shares) | 5,727,310 | 5,727,310 | 5,727,310 | 5,498,260 | ||||||||||||
Common Stock, Shares, Outstanding (in shares) | 5,727,310 | 5,727,310 | 5,727,310 | 5,498,260 | ||||||||||||
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 (in shares) | 0 | 0 | 0 | 0 | ||||||||||||
Shares Issued, Price Per Share (in dollars per share) | $ 0.5 | |||||||||||||||
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | ||||||||||
Class of Warrant or Right, Issued During Period (in shares) | 531,250 | 4,363,229 | ||||||||||||||
Restricted Stock Units (RSUs) [Member] | ||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 225,604 | |||||||||||||||
Share-Based Payment Arrangement, Expense | $ 143,195 | $ 382,111 | $ 494,292 | $ 782,360 | ||||||||||||
Share-Based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount | $ 822,601 | $ 822,601 | $ 822,601 | |||||||||||||
Restricted Stock Units (RSUs) [Member] | The 2022 Incentive Plan [Member] | ||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 201,104 | |||||||||||||||
Public Offering [Member] | ||||||||||||||||
Shares Issued, Price Per Share (in dollars per share) | $ 4 | |||||||||||||||
Private Placement [Member] | ||||||||||||||||
Proceeds from Issuance of Debt | $ 6,000,000 | |||||||||||||||
Warrant Purchase Agreement [Member] | ||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares) | 3,803,133 | |||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ 3.992 | |||||||||||||||
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ 0.008 | |||||||||||||||
Proceeds from Issuance or Sale of Equity, Total | $ 15,182,075 | |||||||||||||||
Private Placement Warrants [Member] | ||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares) | 531,250 | |||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ 5.2 | |||||||||||||||
Class of Warrant or Right, Issued During Period (in shares) | 28,846 | |||||||||||||||
The 2023 Warrants [Member] | ||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares) | 531,250 | 531,250 | 531,250 | |||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ 5.2 | $ 5.2 | $ 5.2 | |||||||||||||
Warrants and Rights Outstanding, Term (Year) | 5 years | 5 years | 5 years | |||||||||||||
Director [Member] | ||||||||||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures (in shares) | 1,042 | 24,500 | 2,340 | |||||||||||||
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures | $ 57,500 | $ 73,500 | $ 110,254 | |||||||||||||
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) | 113,357 | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Annual Grant | $ 36,750 | |||||||||||||||
Management [Member] | ||||||||||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures (in shares) | 26,042 | 158,330 | ||||||||||||||
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures | $ 116,667 | $ 674,164 | ||||||||||||||
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 | $ 73,500 | |||||||||||||||
Convertible Preferred Stock [Member] | ||||||||||||||||
Preferred Stock, Shares Issued (in shares) | 0 | 0 | 0 |
Note 9 - Stockholders' Equity -
Note 9 - Stockholders' Equity - Warrants (Details) - shares | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Balance, Warrants (in shares) | 4,490,104 | 126,875 |
Warrants issued (in shares) | 531,250 | 4,363,229 |
Exercises and conversions (in shares) | 0 | 0 |
Balance, Warrants (in shares) | 5,021,354 | 4,490,104 |
Note 9 - Stockholders' Equity_3
Note 9 - Stockholders' Equity - Share Incentive Plan Activity (Details) - Restricted Stock Units (RSUs) [Member] | 9 Months Ended | |
Sep. 30, 2023 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) | |
Outstanding, units (in shares) | shares | 301,111 | |
Outstanding, weighted average grant-date fair value (in dollars per share) | $ / shares | $ 4.8 | |
Outstanding, aggregated intrinsic value | $ | $ 0 | $ 0 |
Granted, units (in shares) | shares | 225,604 | |
Granted, weighted average grant-date fair value (in dollars per share) | $ / shares | $ 3 | |
Vested and settled with share issuance, units (in shares) | shares | (212,253) | |
Vested and settled with share issuance, weighted average grant-date fair value (in dollars per share) | $ / shares | $ (4.86) | |
Outstanding, September 30, 2023 (in shares) | shares | 314,462 | |
Outstanding, September 30, 2023 (in dollars per share) | $ / shares | $ 3.46 |
Note 10 - Significant Custome_3
Note 10 - Significant Customers / Concentration / Disaggregated Revenue (Details Textual) - Geographic Concentration Risk [Member] - Assets, Total [Member] | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
DENMARK | ||
Concentration Risk, Percentage | 97% | 65% |
UNITED STATES | ||
Concentration Risk, Percentage | 1% | 33% |
CHINA | ||
Concentration Risk, Percentage | 2% | 2% |
Note 10 - Significant Custome_4
Note 10 - Significant Customers / Concentration / Disaggregated Revenue - Concentration of Risk (Details) - Customer Concentration Risk [Member] | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Revenue Benchmark [Member] | Customer A [Member] | |||||
Concentration Risk, Percentage | 12% | ||||
Revenue Benchmark [Member] | Customer B [Member] | |||||
Concentration Risk, Percentage | 14% | 17% | |||
Revenue Benchmark [Member] | Customer D [Member] | |||||
Concentration Risk, Percentage | 11% | ||||
Revenue Benchmark [Member] | Customer C [Member] | |||||
Concentration Risk, Percentage | 12% | ||||
Revenue Benchmark [Member] | Customer E [Member] | |||||
Concentration Risk, Percentage | 12% | ||||
Accounts Receivable [Member] | Customer A [Member] | |||||
Concentration Risk, Percentage | 12% | ||||
Accounts Receivable [Member] | Customer D [Member] | |||||
Concentration Risk, Percentage | 20% | ||||
Accounts Receivable [Member] | Customer E [Member] | |||||
Concentration Risk, Percentage | 11% | 17% | |||
Accounts Receivable [Member] | Customer F [Member] | |||||
Concentration Risk, Percentage | 10% |
Note 11 - Segment Reporting - S
Note 11 - Segment Reporting - Summary of Segment Activity (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Revenue | $ 5,070,446 | $ 3,305,534 | $ 14,071,984 | $ 11,961,062 | |||||
Net Loss | (1,414,230) | $ (1,555,292) | $ (2,389,503) | (1,752,664) | $ (6,507,059) | $ (3,746,424) | (5,359,025) | (12,006,147) | |
Segment assets | 36,839,028 | 36,839,028 | $ 40,125,655 | ||||||
Corporate, Non-Segment [Member] | |||||||||
Revenue | 175,080 | 0 | 177,881 | 50,253 | |||||
Water Segment [Member] | |||||||||
Revenue | 2,629,910 | 785,046 | 6,135,127 | 3,522,049 | |||||
Net Loss | 177,446 | (107,681) | (283,590) | (864,378) | |||||
Segment assets | 9,114,839 | 9,114,839 | 7,781,211 | ||||||
Water Segment [Member] | Operating Segments [Member] | |||||||||
Revenue | 2,629,910 | 785,046 | 6,135,127 | 3,522,049 | |||||
Ceramics Segment [Member] | |||||||||
Revenue | 1,608,763 | 1,854,981 | 4,807,600 | 5,548,951 | |||||
Net Loss | (531,682) | (772,862) | (1,532,455) | (3,519,182) | |||||
Segment assets | 14,900,727 | 14,900,727 | 13,808,529 | ||||||
Ceramics Segment [Member] | Operating Segments [Member] | |||||||||
Revenue | 1,608,763 | 1,854,981 | 4,807,600 | 5,548,951 | |||||
Plastics Segment [Member] | |||||||||
Revenue | 656,693 | 665,507 | 2,951,376 | 2,839,809 | |||||
Plastics Segment [Member] | Operating Segments [Member] | |||||||||
Revenue | 656,693 | 665,507 | 2,951,376 | 2,839,809 | |||||
Plastic Products [Member] | |||||||||
Net Loss | (365,978) | (152,492) | (499,312) | (392,092) | |||||
Segment assets | 894,434 | 894,434 | 1,099,019 | ||||||
Corporate Segment [Member] | |||||||||
Revenue | 175,080 | 0 | 177,881 | 50,253 | |||||
Net Loss | (694,016) | $ (719,629) | (3,043,668) | $ (7,230,495) | |||||
Segment assets | $ 11,929,028 | $ 11,929,028 | $ 17,436,896 |