Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Mar. 21, 2024 | Jun. 30, 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 | FY | ||
Document Fiscal Year Focus | 2023 | ||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 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 | 453 | ||
Local Phone Number | 1315941 | ||
Title of 12(b) Security | Common Stock, $0.001 par value | ||
Trading Symbol | LIQT | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | false | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 16,158,560 | ||
Entity Common Stock, Shares Outstanding | 5,807,340 | ||
Auditor Firm ID | 3627 | ||
Auditor Name | Sadler, Gibb & Associates, LLC | ||
Auditor Location | Draper, UT |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Current Assets: | ||
Cash, cash equivalents and restricted cash | $ 10,422,181 | $ 16,597,371 |
Accounts receivable, net of allowance for doubtful accounts of $134,912 and $59,559 at December 31, 2023 and December 31, 2022, respectively | 3,171,047 | 2,310,344 |
Inventories, net of allowance for excess and obsolete inventory of $867,458 and $663,227 at December 31, 2023 and December 31, 2022, respectively | 5,267,816 | 4,062,001 |
Contract assets | 2,891,744 | 2,253,295 |
Prepaid expenses and other current assets | 337,391 | 1,720,902 |
Assets held for sale | 0 | 723,872 |
Total Current Assets | 22,090,179 | 27,667,785 |
Long-Term Assets: | ||
Property and equipment, net of accumulated depreciation of $11,828,200 and $9,046,499 at December 31, 2023 and December 31, 2022, respectively | 9,007,166 | 8,296,807 |
Operating lease right-of-use assets | 4,055,837 | 3,271,997 |
Deposits and other assets | 470,349 | 450,038 |
Intangible assets, net of accumulated amortization of $558,555 and $438,250 at December 31, 2023 and December 31, 2022, respectively | 114,593 | 212,933 |
Goodwill | 233,723 | 226,095 |
Total Long-term Assets | 13,881,668 | 12,457,870 |
Total Assets | 35,971,847 | 40,125,655 |
Current Liabilities: | ||
Accounts payable | 2,444,653 | 1,389,355 |
Accrued expenses | 3,550,542 | 3,087,206 |
Current portion of finance lease obligations | 590,550 | 399,198 |
Current portion of operating lease liabilities | 531,355 | 561,182 |
Contract liabilities | 382,647 | 649,557 |
Total Current Liabilities | 7,499,747 | 6,086,498 |
Deferred tax liability | 101,059 | 154,645 |
Finance lease obligation, net of current portion | 2,879,932 | 2,384,011 |
Operating lease liability, net of current portion | 3,527,082 | 2,710,815 |
Senior promissory notes payable | 4,688,011 | 5,480,314 |
Total Long-term liabilities | 11,196,084 | 10,729,785 |
Total Liabilities | 18,695,831 | 16,816,283 |
Stockholders' Equity: | ||
Preferred stock; par value $0.001, 2,500,000 shares authorized, 0 shares issued and outstanding at December 31, 2022 and December 31, 2021 | 0 | 0 |
Common stock; par value $0.001, 50,000,000 shares authorized 5,727,310 and 5,498,260 shares issued and outstanding at December 31, 2023 and December 31, 2022, respectively | 5,727 | 5,498 |
Additional paid-in capital | 98,796,357 | 96,975,476 |
Accumulated deficit | (75,922,180) | (67,351,035) |
Accumulated other comprehensive loss | (5,603,888) | (6,320,567) |
Total Stockholders' Equity | 17,276,016 | 23,309,372 |
Total Liabilities and Stockholders' Equity | $ 35,971,847 | $ 40,125,655 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Accounts receivable, allowance for doubtful accounts | $ 134,912 | $ 59,559 |
Inventories, allowance for excess and obsolete inventory | 867,458 | 663,227 |
Property and equipment, accumulated depreciation | 11,828,200 | 9,046,499 |
Intangible assets, accumulated depreciations | $ 558,555 | $ 438,250 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, authorized (in shares) | 2,500,000 | 2,500,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, issued (in shares) | 5,727,310 | 5,498,260 |
Common stock, outstanding (in shares) | 5,727,310 | 5,498,260 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Revenue | $ 18,001,652 | $ 15,982,438 |
Cost of Goods Sold | 15,226,176 | 15,415,294 |
Gross Profit | 2,775,476 | 567,144 |
Operating Expenses: | ||
Selling expenses | 4,298,905 | 3,669,887 |
General and administrative expenses | 4,856,779 | 5,701,955 |
Research and development expenses | 1,418,842 | 1,835,890 |
Restructuring costs | 0 | 1,893,166 |
Total Operating Expenses | 10,574,526 | 13,100,898 |
Loss from Operations | (7,799,050) | (12,533,754) |
Other Income (Expense) | ||
Interest and other income | 366,365 | 384,058 |
Interest expense | (151,670) | (419,942) |
Amortization of discount on convertible note | (400,903) | (2,389,128) |
Gain (loss) on currency transactions | (359,960) | 404,162 |
Gain on lease termination | 0 | 147,452 |
Gain (loss) on disposal of assets held for sale | (439,388) | 0 |
Gain on sale of property and equipment | 7,254 | 635 |
Total Other Expense | (978,302) | (1,872,763) |
Loss Before Income Taxes | (8,777,352) | (14,406,517) |
Income Tax Benefit | (206,207) | (237,410) |
Net Loss | $ (8,571,145) | $ (14,169,107) |
Basic and Diluted Loss Per Share (in dollars per share) | $ (1.51) | $ (3.2) |
Basic and Diluted Weighted Average Common Shares Outstanding (in shares) | 5,688,281 | 4,424,433 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Net Loss for the year ended December 31, 2023 | $ (8,571,145) | $ (14,169,107) |
Other Comprehensive Income (Loss) - Currency Translation, net | 716,679 | (1,345,168) |
Total Comprehensive Loss | $ (7,854,466) | $ (15,514,275) |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - 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) | 20,566 | ||||
Common stock issued in settlement of RSUs | $ 20 | (20) | |||
Warrants issued in connection with Senior Promissory Notes | 660,836 | 660,836 | |||
Stock-based compensation | 934,423 | 934,423 | |||
Currency translation, net | (1,345,168) | (1,345,168) | |||
Net Loss for the year ended December 31, 2023 | (14,169,107) | (14,169,107) | |||
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 | 24,453,528 | ||
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) | 212,254 | ||||
Common stock issued in settlement of RSUs | $ 212 | (212) | |||
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) | |||
Warrants issued in connection with Senior Promissory Notes | 1,193,206 | 1,193,206 | |||
Stock-based compensation | 627,904 | 627,904 | |||
Currency translation, net | 716,679 | 716,679 | |||
Net Loss for the year ended December 31, 2023 | (8,571,145) | (8,571,145) | |||
BALANCE (in shares) at Dec. 31, 2023 | 5,727,310 | ||||
BALANCE at Dec. 31, 2023 | $ 5,727 | $ 98,796,357 | $ (75,922,180) | $ (5,603,888) | $ 17,276,016 |
Consolidated Statement of Sto_2
Consolidated Statement of Stockholders' Equity (Parentheticals) | 12 Months Ended |
Dec. 31, 2022 USD ($) $ / shares | |
Shares issued, offering cost | $ | $ 1,996,469 |
Shares issued, offering cost per share (in dollars per share) | $ / shares | $ 0.5 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash Flows from Operating Activities: | ||
Net Income (Loss) | $ (8,571,145) | $ (14,169,107) |
Adjustments to reconcile net loss to net cash used in operations: | ||
Depreciation and amortization | 3,140,779 | 2,585,881 |
Amortization of discount on convertible notes payable | 400,903 | 2,389,128 |
Stock-based compensation | 627,904 | 934,423 |
Change in deferred tax liability | (57,539) | (55,994) |
Gain on lease termination | 0 | (147,452) |
Loss on disposal of assets held for sale | 439,388 | 0 |
Gain on sale of equipment | (7,254) | (635) |
Changes in assets and liabilities: | ||
Accounts receivable | (765,956) | (460,837) |
Inventory | (1,045,838) | 984,130 |
Contract assets | (825,974) | (460,743) |
Prepaid expenses and other current assets | 1,403,707 | (354,307) |
Accounts payable | 990,538 | (158,797) |
Accrued expenses | 639,309 | (1,632,897) |
Operating lease liabilities | (562,948) | (544,391) |
Contract liabilities | (282,614) | (234,873) |
Assets held for sale | 292,822 | (712,549) |
Net Cash used in Operating Activities | (4,183,918) | (12,039,020) |
Cash Flows from Investing Activities: | ||
Purchase of property and equipment | (2,893,290) | (1,690,621) |
Proceeds from sale of property and equipment | 7,254 | 635 |
Net Cash used in Investing Activities | (2,886,036) | (1,689,986) |
Cash Flows from Financing Activities: | ||
Payments on finance lease obligation | (435,343) | 77,939 |
Proceeds from Sale and Leaseback Agreements | 1,015,988 | 0 |
Payments on Convertible Note | 0 | (16,800,000) |
Proceeds from issuance of common stock and prefunded warrants | 0 | 24,418,612 |
Proceeds from issuance of Senior Promissory Notes | 0 | 6,000,000 |
Net Cash Provided by Financing Activities | 580,645 | 13,696,551 |
Effect of foreign currency exchange on cash | 314,119 | (859,554) |
Net Change in Cash, Cash Equivalents and Restricted Cash | (6,175,190) | (892,009) |
Cash, Cash Equivalents and Restricted Cash at Beginning of Period | 16,597,371 | 17,489,380 |
Cash, Cash Equivalents and Restricted Cash at End of Period | 10,422,181 | 16,597,371 |
Supplemental Disclosures of Cash Flow Information: | ||
Interest | 178,872 | 348,575 |
Income Taxes | 0 | 0 |
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 | 12 Months Ended |
Dec. 31, 2023 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | NOTE 1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Business and Basis of Presentation The consolidated financial statements include the accounts of LiqTech International, Inc. and its subsidiaries (the “Company”). 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 Americas, Asia-Pacific, Europe, and Middle-East & Africa. 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 Inc., 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, 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 -- twelve December 31, 2023 2022. Cash, Cash Equivalents, and Restricted Cash -- three December 31, 2023, 2022, Accounts held in each U.S. institution are insured by the Federal Deposit Insurance Company (“FDIC”) up to $250,000. December 31, 2023 December 31, 2022, Accounts Receivable -- 326, The roll-forward of the allowance for doubtful accounts as of December 31, 2023 December 31, 2022 2023 2022 Allowance for doubtful accounts at the beginning of the period $ 59,559 $ 409,076 Bad debt expense 82,066 (24,534 ) Receivables written off during the periods (10,298 ) (295,778 ) Effect of currency translation 3,585 (29,205 ) Allowance for doubtful accounts at the end of the period $ 134,912 $ 59,559 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 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 for our products. 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 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 Long-lived Assets may not not Impairments of long-lived assets are determined for groups of assets related to the lowest level of identifiable independent cash flows. Due to the Company’s asset usage model and the interchangeable nature of its ceramic filter manufacturing capacity, the Company must make subjective judgments in determining the independent cash flows that can be related to specific asset groupings. In addition, as the Company makes manufacturing process changes and other factory planning decisions, it must make subjective judgments regarding the remaining useful lives of assets, primarily process-specific filter manufacturing tools and building improvements. If the Company determines that the useful lives of assets are shorter than it had originally estimated, the Company accelerates the rate of depreciation over the assets’ new, shorter useful lives. Management has analyzed the impact of the current economic climate on its financial statements as of December 31, 2023, not December 31, 2023 2022, 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 606, five 1 2 3 4 5 The Company sells products throughout the world; sales by geographical region are as follows for the year ended December 31, 2023 2022: % Distribution For the Year Ended December 31 2023 2022 2023 2022 Americas 12 % 7 % $ 2,125,460 $ 1,073,433 Asia-Pacific 14 % 21 % 2,506,215 3,406,420 Europe 65 % 59 % 11,820,674 9,379,337 Middle East & Africa 9 % 13 % 1,549,303 2,123,248 100 % 100 % $ 18,001,652 $ 15,982,438 The Company’s sales by product line are as follows for the years ended December 31, 2023 2022: % Distribution For the Year Ended December 31 2023 2022 2023 2022 Water 42 % 33 % $ 7,705,080 $ 5,297,286 Ceramics 35 % 43 % 6,232,628 6,844,861 Plastics 21 % 22 % 3,736,529 3,528,606 Corporate 2 % 2 % 327,415 311,685 100 % 100 % $ 18,001,652 $ 15,982,438 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 an 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 Factory Acceptance Test (“FAT”) 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 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 year ended December 31, 2023 December 31, 2022 2023 2022 Cost incurred $ 3,225,728 $ 3,860,179 Unbilled project deliveries 582,557 950,105 VAT 329,980 229,006 Other receivables 92,619 45,814 Prepayments (1,688,427 ) (3,363,039 ) Deferred Revenue (33,360 ) (118,327 ) $ 2,509,097 $ 1,603,738 Distributed as follows: Contract assets $ 2,891,744 $ 2,253,295 Contract liabilities (382,647 ) (649,557 ) $ 2,509,097 $ 1,603,738 Cost of Sales -- Advertising Cost -- December 31, 2023 2022, Research and Development Cost -- December 31, 2023 2022 Income Taxes -- 740: Loss Contingencies may Income/(Loss) Per Share -- 260, not Stock Awards -- 718, December 31, 2023 2022, Fair Value of Financial Instruments -- 820. three ● Level 1. ● Level 2. ● Level 3. no Unless otherwise disclosed, the fair value of the Company’s financial instruments including cash, accounts receivable, other receivables, prepaid expenses, accounts payable, and accrued expenses approximate their recorded values due to their short-term maturities. Accounting Estimates -- Recent Accounting Pronouncements -- December 2023, 2023 09, 740 1 2 2023 09 December 15, 2025, In November 2023, 2023 07, 280 2023 07 December 15, 2023, December 15, 2024, In August 2023, 2023 05, 805 60 2023 05 January 1, 2025, Other recent accounting pronouncements issued by the FASB did not not |
Note 2 - Going Concern
Note 2 - Going Concern | 12 Months Ended |
Dec. 31, 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 We continue to analyze various alternatives, including potentially obtaining debt or equity financings or other arrangements. Our future success depends on our ability to raise capital and restore profitability. We cannot be certain that raising additional capital, whether through selling additional debt or equity securities or obtaining a line of credit or other loan, will be available to us or, if available, will be on terms acceptable to us. If we issue additional securities to raise funds, these securities may may may As of December 31, 2023, |
Note 3 - Restructuring Costs
Note 3 - Restructuring Costs | 12 Months Ended |
Dec. 31, 2023 | |
Notes to Financial Statements | |
Restructuring and Related Activities Disclosure [Text Block] | NOTE 3 RESTRUCTURING COSTS During the second 2022, CEO separation May 10, 2022, May 12, 2022. March 17, 2022. DKK1,605,000 six Terminated employees second 2022, No China close-down second 2022, Capex commitments second third fourth Write-downs -- The Company’s restructuring costs are as follows for the years ended December 31, 2023 2022: December 31, 2023 December 31, 2022 CEO separation $ - $ 228,975 Terminated employees - 158,199 China close-down - 275,445 Capex commitments - 813,994 Write-downs - 416,553 $ - $ 1,893,166 |
Note 4 - Inventory
Note 4 - Inventory | 12 Months Ended |
Dec. 31, 2023 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | NOTE 4 Inventory consisted of the following at December 31, 2023 December 31, 2022: 2023 2022 Furnace parts and supplies $ 55,177 $ 66,495 Raw materials 3,301,526 2,474,227 Work in process 1,271,458 982,973 Finished goods and filtration systems 1,507,113 1,201,533 Reserve for excess and obsolescence (867,458 ) (663,227 ) Net Inventory $ 5,267,816 $ 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 5 - Property and Equipment
Note 5 - Property and Equipment | 12 Months Ended |
Dec. 31, 2023 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | NOTE 5 - PROPERTY AND EQUIPMENT Property and equipment consisted of the following on December 31, 2023 December 31, 2022: Useful Life 2023 2022 Production equipment 3 - 10 $ 9,433,581 $ 8,027,589 Production equipment - finance lease 3 - 10 5,182,375 3,625,558 Lab equipment 3 - 10 130,909 118,935 Computer equipment 3 - 5 1,141,790 1,070,437 Vehicles 3 - 5 26,897 26,020 Furniture and fixture 5 1,474,032 1,141,424 Furniture and fixture - finance lease 5 260,911 252,397 Leasehold improvements 5 - 10 3,184,871 3,080,946 20,835,366 17,343,306 Less Accumulated Depreciation (10,950,622 ) (8,501,846 ) Less Accumulated Depreciation - finance lease (877,578 ) (544,653 ) Net Property and Equipment $ 9,007,166 $ 8,296,807 Depreciation expense amounted to $2,472,031 and $2,007,112 for the year ended December 31, 2023, 2022, $2,472,031 December 31, 2023, |
Note 6 - Leases
Note 6 - Leases | 12 Months Ended |
Dec. 31, 2023 | |
Notes to Financial Statements | |
Lessee, Operating and Finance Leases [Text Block] | NOTE 6 - 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. The lease agreements expire on November 30, 2034, August 31, 2024, August 31, 2028, During the year ended December 31, 2023, During the year ended December 31, 2023, Supplemental balance sheet information related to leases as of December 31, 2023 2022 December 31, 2023 December 31, 2022 Operating leases Operating lease right-of-use assets $ 4,055,837 $ 3,271,997 Operating lease liabilities – current $ 531,355 $ 561,182 Operating lease liabilities – long-term 3,527,082 2,710,815 Total operating lease liabilities $ 4,058,437 $ 3,271,997 Finance leases Property and equipment, at cost $ 5,443,287 $ 3,877,955 Accumulated depreciation (877,578 ) (544,653 ) Property and equipment, net $ 4,565,709 $ 3,333,302 Finance lease liabilities – current $ 590,550 $ 399,198 Finance lease liabilities – long-term 2,879,932 2,384,011 Total finance lease liabilities $ 3,470,482 $ 2,783,209 Weighted average remaining lease term: Operating leases 8.3 9.6 Finance leases 4.3 5.4 Weighted average discount rate: Operating leases 6.7 % 6.2 % Finance leases 6.0 % 2.8 % Maturities of lease liabilities at December 31, 2023 Operating lease Finance lease 2024 $ 785,707 $ 804,044 2025 702,899 800,510 2026 692,137 764,105 2027 692,137 1,320,097 2028 566,381 356,983 Thereafter 1,810,499 130,196 Total payment under lease agreements 5,249,760 4,175,935 Less imputed interest (1,191,323 ) (705,453 ) Total lease liability $ 4,058,437 $ 3,470,482 |
Note 7 - Intangible Assets
Note 7 - Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Notes to Financial Statements | |
Intangible Assets Disclosure [Text Block] | NOTE 7 At December 31, 2023 December 31, 2022, Intangible assets consisted of the following at December 31, 2023 December 31, 2022: 2023 2022 Customer relationships $ 489,273 $ 473,308 Patent cost 183,874 177,875 673,148 651,183 Less Accumulated amortization (558,555 ) (438,250 ) Intangible assets, net $ 114,593 $ 212,933 Amortization expense amounted to $105,522 and $81,019 for the years ended December 31, 2023 2022, Expected future amortization expense for the years ended are as follows: Year ending December 31, Amortization Expenses 2024 72,902 2025 7,665 2026 7,665 2027 7,665 2028 7,665 Thereafter 11,031 $ 114,593 |
Note 8 - Lines of Credit
Note 8 - Lines of Credit | 12 Months Ended |
Dec. 31, 2023 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | NOTE 8 In connection with certain orders, the Company provides to customers a working guarantee, prepayment guarantee, or security bond. For that purpose, the Company has a guaranteed credit line of EUR 850,000 (approx. $940,000) secured by a cash deposit. As of December 31, 2023, no |
Note 9 - Accounts Payable and A
Note 9 - Accounts Payable and Accrued Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Notes to Financial Statements | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | NOTE 9 ACCOUNTS PAYABLE AND ACCRUED LIABILITIES Accounts payable and accrued liabilities consisted of the following at December 31, 2023 December 31, 2022: December 31, 2023 December 31, 2022 Accounts payable $ 2,444,653 $ 1,389,355 Accrued payroll liabilities 1,223,712 510,727 Product warranty accrual 629,100 898,072 Other accrued expenses 1,697,730 1,678,407 Total $ 5,995,195 $ 4,476,561 |
Note 10 - Long-term Debt
Note 10 - Long-term Debt | 12 Months Ended |
Dec. 31, 2023 | |
Notes to Financial Statements | |
Long-Term Debt [Text Block] | NOTE 10 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), 805.3992 $1,000 Beginning on March 1, 2022, first 90% three 3 10 no As of June 22, 2022, For the year ended December 31, 2023 2022, Senior Promissory Notes On June 22, 2022, 21 April 21 April five The Notes originally had 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 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 fair value of the warrants 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: December 31, 2023 December 31, 2022 Senior Promissory Notes $ 6,000,000 6,000,000 Less: unamortized debt discount (1,311,989 ) (519,686 ) Senior Promissory Notes payable $ 4,688,011 $ 5,480,314 Current portion of Senior Promissory Notes payable - - Senior Promissory Notes payable, less current portion 4,688,011 5,480,314 Senior Promissory Notes payable $ 4,688,011 $ 5,480,314 For the year ended December 31, 2023, 2022, |
Note 11 - Agreements, Commitmen
Note 11 - Agreements, Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 11 AGREEMENTS, COMMITMENTS AND CONTINGENCIES 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 for the fiscal years ended December 31, 2023 2022 2023 2022 Balance at January 1, $ 898,072 $ 962,313 Warranty costs charged to cost of goods sold 115,401 86,256 Utilization charges against reserve (408,234 ) (93,653 ) Foreign currency effect 23,861 (56,844 ) Balance at December 31, $ 629,100 $ 898,072 The utilization charges against the reserve for the ended December 31, 2023 |
Note 12 - Income Taxes
Note 12 - Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | NOTE 12 INCOME TAXES The Company accounts for income taxes in accordance with FASB ASC Topic 740, two first not second 50%. As of December 31, 2023, 2041; not 2027. As of December 31, 2023 December 31, 2022, not not December 31, 2023 December 31, 2022 The temporary differences, tax credits and carry-forwards gave rise to the following deferred tax assets and liabilities at December 31, 2023 December 31, 2022: 2023 2022 Excess of tax over financial accounting $ 1,454,389 $ 973,859 Reserve for excess and obsolete inventory 190,841 145,910 Accrued interest - - Discount amortization 724,353 640,163 Deferred compensation - - Net operating loss carryover 11,580,458 11,057,361 Excess of book over tax depreciation (359,917 ) (272,243 ) Excess of book over tax work in progress 190,196 (253,930 ) Valuation allowance (13,881,379 ) (12,445,765 ) $ (101,059 ) $ (154,645 ) Distributed as: Long-term deferred tax asset - - Long-term deferred tax liability (101,059 ) (154,645 ) $ (101,059 ) $ (154,645 ) A reconciliation of income tax expense at the federal statutory rate to income tax expense at the Company’s effective rate is as follows for the years ended December 31, 2023 2022: 2023 2022 Computed tax at expected statutory rate $ (1,843,244 ) $ (3,025,369 ) State and local income taxes, net of federal benefit (1,177 ) (1,532 ) Non-US income taxed at different rates (44,279 ) (138,596 ) Deferred compensation - 52,500 Non-deductible expenses 5,399 2,749 Non-taxable income - (541 ) Change in valuation allowance 1,755,013 3,035,205 Other (77,919 ) (161,826 ) Income tax expense (benefit) $ (206,207 ) $ (237,410 ) The components of income tax expense (benefit) from continuing operations for the years ended December 31, 2023 2022 2023 2022 Current income taxes: Danish $ (148,668 ) $ (181,417 ) Federal - - State - - Current tax (benefit) $ - $ - Deferred income taxes: Book in excess of tax depreciation $ (386,673 ) $ (346,154 ) Work in progress (442,964 ) (294,233 ) Net operating loss carryover (402,448 ) (2,041,211 ) Valuation allowance 1,128,197 2,319,705 Deferred compensation - (52,500 ) Accrued interest - (13,125 ) Discount amortization 84,190 464,744 Accrued vacation - (4,305 ) Reserve for obsolete inventory (37,841 ) (88,915 Deferred tax expense (benefit) $ (57,539 ) $ (55,994 ) Total tax expense (benefit) $ (206,207 ) $ (237,410 ) Deferred income tax expense / (benefit) results primarily from the reversal of temporary timing differences between tax and financial statement income. The Company files Danish, Chinese, U.S. federal and Minnesota state income tax returns. LiqTech Holding, LiqTech Ceramics, LiqTech Water, LiqTech Plastics, LiqTech Emission Control, and LiqTech Water Projects are generally no 2017 no 2017 |
Note 13 - Earnings Per Share
Note 13 - Earnings Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | NOTE 13 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 year ended December 31, 2023, For the year ended December 31, 2022, |
Note 14 - Stockholders' Equity
Note 14 - Stockholders' Equity | 12 Months Ended |
Dec. 31, 2023 | |
Notes to Financial Statements | |
Equity [Text Block] | NOTE 14 Common Stock December 31, 2023 2022, Voting - one not Dividends - may may Liquidation Rights - Other Matters - no no Preferred Stock - one may may The Company has 2,500,000 authorized shares of preferred stock, $0.001 par value. As of December 31, 2023 2022, Reversed Stock Split May 26, 2023, 1 1 1 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.” Stock Issuances Since January 1, 2023, On January 3, 2023, 2022. December 31, 2022. On January 3, 2023, 2022. December 31, 2022. On May, 2023, 1 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 years ended December 31, 2023 2022: 2023 2022 Warrants outstanding at January 1 4,490,104 126,875 Warrants issued in connection with public offering and private placement 531,250 4,363,229 Common stock exchanged to prefunded warrant - - Warrants outstanding at December 31 5,021,354 4,490,104 Stock-based Compensation In 2013, December 31, 2023, one In 2022, “2022 2022 December 31, 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 $627,904 and $934,423 for the years ended December 31, 2023 2022, December 31, 2023, A summary of the status of the RSUs as of December 31, 2023 December 31, 2023 Number of units Weighted Average Fair value Aggregated Intrinsic Outstanding, December 31, 2022 301,111 $ 4.80 $ - Granted 225,604 3.00 - Vested and settled with share issuance (212,254 ) (4.86 ) - Outstanding, December 31, 2023 314,461 $ 3.46 $ - |
Note 15 - Segment Reporting
Note 15 - Segment Reporting | 12 Months Ended |
Dec. 31, 2023 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | NOTE 15 SEGMENT REPORTING The Company operates in three January 1, 2020, 2020. Segment information for the business areas is as follows: For the Year Ended December 31, Revenues 2023 2022 Water $ 7,705,080 $ 5,297,286 Ceramics 6,232,628 6,844,861 Plastics 3,736,529 3,528,606 Other 327,415 311,685 Total consolidated revenue $ 18,001,652 $ 15,982,438 For the Year Ended December 31, Loss 2023 2022 Water $ (736,148 ) $ (1,072,530 ) Ceramics (2,640,894 ) (4,648,768 ) Plastics (660,896 ) (794,942 ) Other (4,533,206 ) (7,652,867 ) Total consolidated Loss $ (8,571,145 ) $ (14,169,107 ) For the Year Ended December 31, Total assets 2023 2022 Water $ 9,432,991 $ 7,781,211 Ceramics 14,550,872 13,808,529 Plastics 759,745 1,099,019 Other 11,228,239 17,436,896 Total consolidated assets $ 35,971,847 $ 40,125,655 |
Note 16 - Significant Customers
Note 16 - Significant Customers / Concentration | 12 Months Ended |
Dec. 31, 2023 | |
Notes to Financial Statements | |
Concentration Risk Disclosure [Text Block] | NOTE 16 SIGNIFICANT CUSTOMERS / CONCENTRATION The following table presents customers accounting for 10% For the Year Ended December 31, 2023 2022 Customer A - % 13 % * Zero or less than 10% The following table presents customers accounting for 10% December 31, 2023 December 31, 2022 Customer B 22 % 17 % Customer C 13 % - % Customer D - % 20 % Customer E - % 10 % As of December 31, 2023, December 31, 2022, |
Note 17 - Subsequent Events
Note 17 - Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | NOTE 17 SUBSEQUENT EVENTS On January 3, 2024, 2023. On January 3, 2024, 2023. On January 10, 2024, April 10, 2024. |
Insider Trading Arrangements
Insider Trading Arrangements | 12 Months Ended |
Dec. 31, 2023 | |
Insider Trading Arr Line Items | |
Material Terms of Trading Arrangement [Text Block] | 9B. Other Information Item 5.02. On March 19, 2024, April 1, 2024. 32, January 2022. April 2021, 265 June 2020, one 2013, On January 28, 2022, January 3, 2022 ( 100,000 $14,660 300,000 $43,980 The foregoing descriptions of the Employment Contract and the Addendum are not 10.16, 10.17 10 Mr. Price does not no 404 |
Rule 10b5-1 Arrangement Adopted [Flag] | false |
Rule 10b5-1 Arrangement Terminated [Flag] | false |
Non-Rule 10b5-1 Arrangement Adopted [Flag] | false |
Non-Rule 10b5-1 Arrangement Terminated [Flag] | false |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2023 | |
Notes to Financial Statements | |
SEC Schedule, 12-09, Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | 15. Exhibits and Financial Statement Schedules (a) Financial Statements and Schedules The financial statements are set forth under Item 8 December 31, 2023 December 31, 2022 10 a. Valuation and Qualifying Accounts for the years ended December 31, 2023 December 31, 2022. 2023 2022 Bad debt expense 82,066 (24,534 ) Reserve for obsolete inventory 177,953 404,160 Balance Beginning of Year Charges to Costs and Expenses Deductions (1) Balance End of Year Year Ended December 31, 2023 Allowance for inventory obsolescence $ 663,227 $ 177,953 $ 26,278 $ 867,458 Allowance for doubtful accounts 59,559 82,066 (6,713 ) 134,912 Totals $ 722,786 $ 260,019 $ 19,565 $ 1,002,370 Year Ended December 31, 2022 Allowance for inventory obsolescence $ 268,470 $ 404,160 $ (9,403 ) $ 663,227 Allowance for doubtful accounts 409,076 (24,534 ) (324,983 ) 59,559 Totals $ 677,546 $ 379,626 $ (334,386 ) $ 722,786 2023 2022 Allowance for doubtful accounts at the beginning of the period $ 59,559 $ 409,076 Bad debt expense 82,066 (24,534 ) Receivables written off during the periods (10,298 ) (295,778 ) Effect of currency translation 3,585 (29,205 ) Allowance for doubtful accounts at the end of the period $ 134,912 $ 59,559 ( 1 Schedules other than that listed above are omitted because the conditions requiring their filing do not not not |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 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. and its subsidiaries (the “Company”). 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 Americas, Asia-Pacific, Europe, and Middle-East & Africa. 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 Inc., 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, |
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 -- twelve December 31, 2023 2022. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash, Cash Equivalents, and Restricted Cash -- three December 31, 2023, 2022, Accounts held in each U.S. institution are insured by the Federal Deposit Insurance Company (“FDIC”) up to $250,000. December 31, 2023 December 31, 2022, |
Accounts Receivable [Policy Text Block] | Accounts Receivable -- 326, The roll-forward of the allowance for doubtful accounts as of December 31, 2023 December 31, 2022 2023 2022 Allowance for doubtful accounts at the beginning of the period $ 59,559 $ 409,076 Bad debt expense 82,066 (24,534 ) Receivables written off during the periods (10,298 ) (295,778 ) Effect of currency translation 3,585 (29,205 ) Allowance for doubtful accounts at the end of the period $ 134,912 $ 59,559 |
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 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 for our products. |
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 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 |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Long-lived Assets may not not Impairments of long-lived assets are determined for groups of assets related to the lowest level of identifiable independent cash flows. Due to the Company’s asset usage model and the interchangeable nature of its ceramic filter manufacturing capacity, the Company must make subjective judgments in determining the independent cash flows that can be related to specific asset groupings. In addition, as the Company makes manufacturing process changes and other factory planning decisions, it must make subjective judgments regarding the remaining useful lives of assets, primarily process-specific filter manufacturing tools and building improvements. If the Company determines that the useful lives of assets are shorter than it had originally estimated, the Company accelerates the rate of depreciation over the assets’ new, shorter useful lives. Management has analyzed the impact of the current economic climate on its financial statements as of December 31, 2023, not December 31, 2023 2022, |
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 606, five 1 2 3 4 5 The Company sells products throughout the world; sales by geographical region are as follows for the year ended December 31, 2023 2022: % Distribution For the Year Ended December 31 2023 2022 2023 2022 Americas 12 % 7 % $ 2,125,460 $ 1,073,433 Asia-Pacific 14 % 21 % 2,506,215 3,406,420 Europe 65 % 59 % 11,820,674 9,379,337 Middle East & Africa 9 % 13 % 1,549,303 2,123,248 100 % 100 % $ 18,001,652 $ 15,982,438 The Company’s sales by product line are as follows for the years ended December 31, 2023 2022: % Distribution For the Year Ended December 31 2023 2022 2023 2022 Water 42 % 33 % $ 7,705,080 $ 5,297,286 Ceramics 35 % 43 % 6,232,628 6,844,861 Plastics 21 % 22 % 3,736,529 3,528,606 Corporate 2 % 2 % 327,415 311,685 100 % 100 % $ 18,001,652 $ 15,982,438 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 an 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 Factory Acceptance Test (“FAT”) 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 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 year ended December 31, 2023 December 31, 2022 2023 2022 Cost incurred $ 3,225,728 $ 3,860,179 Unbilled project deliveries 582,557 950,105 VAT 329,980 229,006 Other receivables 92,619 45,814 Prepayments (1,688,427 ) (3,363,039 ) Deferred Revenue (33,360 ) (118,327 ) $ 2,509,097 $ 1,603,738 Distributed as follows: Contract assets $ 2,891,744 $ 2,253,295 Contract liabilities (382,647 ) (649,557 ) $ 2,509,097 $ 1,603,738 |
Cost of Goods and Service [Policy Text Block] | Cost of Sales -- |
Advertising Cost [Policy Text Block] | Advertising Cost -- December 31, 2023 2022, |
Research and Development Expense, Policy [Policy Text Block] | Research and Development Cost -- December 31, 2023 2022 |
Income Tax, Policy [Policy Text Block] | Income Taxes -- 740: |
Commitments and Contingencies, Policy [Policy Text Block] | Loss Contingencies may |
Earnings Per Share, Policy [Policy Text Block] | Income/(Loss) Per Share -- 260, not |
Share-Based Payment Arrangement [Policy Text Block] | Stock Awards -- 718, December 31, 2023 2022, |
Fair Value Measurement, Policy [Policy Text Block] | Fair Value of Financial Instruments -- 820. three ● Level 1. ● Level 2. ● Level 3. no Unless otherwise disclosed, the fair value of the Company’s financial instruments including cash, accounts receivable, other receivables, prepaid expenses, accounts payable, and accrued expenses approximate their recorded values due to their short-term maturities. |
Use of Estimates, Policy [Policy Text Block] | Accounting Estimates -- |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements -- December 2023, 2023 09, 740 1 2 2023 09 December 15, 2025, In November 2023, 2023 07, 280 2023 07 December 15, 2023, December 15, 2024, In August 2023, 2023 05, 805 60 2023 05 January 1, 2025, 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) | 12 Months Ended |
Dec. 31, 2023 | |
Notes Tables | |
Financing Receivable, Allowance for Credit Loss [Table Text Block] | 2023 2022 Allowance for doubtful accounts at the beginning of the period $ 59,559 $ 409,076 Bad debt expense 82,066 (24,534 ) Receivables written off during the periods (10,298 ) (295,778 ) Effect of currency translation 3,585 (29,205 ) Allowance for doubtful accounts at the end of the period $ 134,912 $ 59,559 |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | % Distribution For the Year Ended December 31 2023 2022 2023 2022 Americas 12 % 7 % $ 2,125,460 $ 1,073,433 Asia-Pacific 14 % 21 % 2,506,215 3,406,420 Europe 65 % 59 % 11,820,674 9,379,337 Middle East & Africa 9 % 13 % 1,549,303 2,123,248 100 % 100 % $ 18,001,652 $ 15,982,438 |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | % Distribution For the Year Ended December 31 2023 2022 2023 2022 Water 42 % 33 % $ 7,705,080 $ 5,297,286 Ceramics 35 % 43 % 6,232,628 6,844,861 Plastics 21 % 22 % 3,736,529 3,528,606 Corporate 2 % 2 % 327,415 311,685 100 % 100 % $ 18,001,652 $ 15,982,438 |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Table Text Block] | 2023 2022 Cost incurred $ 3,225,728 $ 3,860,179 Unbilled project deliveries 582,557 950,105 VAT 329,980 229,006 Other receivables 92,619 45,814 Prepayments (1,688,427 ) (3,363,039 ) Deferred Revenue (33,360 ) (118,327 ) $ 2,509,097 $ 1,603,738 Distributed as follows: Contract assets $ 2,891,744 $ 2,253,295 Contract liabilities (382,647 ) (649,557 ) $ 2,509,097 $ 1,603,738 |
Note 3 - Restructuring Costs (T
Note 3 - Restructuring Costs (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Notes Tables | |
Restructuring and Related Costs [Table Text Block] | December 31, 2023 December 31, 2022 CEO separation $ - $ 228,975 Terminated employees - 158,199 China close-down - 275,445 Capex commitments - 813,994 Write-downs - 416,553 $ - $ 1,893,166 |
Note 4 - Inventory (Tables)
Note 4 - Inventory (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | 2023 2022 Furnace parts and supplies $ 55,177 $ 66,495 Raw materials 3,301,526 2,474,227 Work in process 1,271,458 982,973 Finished goods and filtration systems 1,507,113 1,201,533 Reserve for excess and obsolescence (867,458 ) (663,227 ) Net Inventory $ 5,267,816 $ 4,062,001 |
Note 5 - Property and Equipme_2
Note 5 - Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | Useful Life 2023 2022 Production equipment 3 - 10 $ 9,433,581 $ 8,027,589 Production equipment - finance lease 3 - 10 5,182,375 3,625,558 Lab equipment 3 - 10 130,909 118,935 Computer equipment 3 - 5 1,141,790 1,070,437 Vehicles 3 - 5 26,897 26,020 Furniture and fixture 5 1,474,032 1,141,424 Furniture and fixture - finance lease 5 260,911 252,397 Leasehold improvements 5 - 10 3,184,871 3,080,946 20,835,366 17,343,306 Less Accumulated Depreciation (10,950,622 ) (8,501,846 ) Less Accumulated Depreciation - finance lease (877,578 ) (544,653 ) Net Property and Equipment $ 9,007,166 $ 8,296,807 |
Note 6 - Leases (Tables)
Note 6 - Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Notes Tables | |
Lessee, Operating and Finance Lease, Assets and Liabilities [Table Text Block] | December 31, 2023 December 31, 2022 Operating leases Operating lease right-of-use assets $ 4,055,837 $ 3,271,997 Operating lease liabilities – current $ 531,355 $ 561,182 Operating lease liabilities – long-term 3,527,082 2,710,815 Total operating lease liabilities $ 4,058,437 $ 3,271,997 Finance leases Property and equipment, at cost $ 5,443,287 $ 3,877,955 Accumulated depreciation (877,578 ) (544,653 ) Property and equipment, net $ 4,565,709 $ 3,333,302 Finance lease liabilities – current $ 590,550 $ 399,198 Finance lease liabilities – long-term 2,879,932 2,384,011 Total finance lease liabilities $ 3,470,482 $ 2,783,209 Weighted average remaining lease term: Operating leases 8.3 9.6 Finance leases 4.3 5.4 Weighted average discount rate: Operating leases 6.7 % 6.2 % Finance leases 6.0 % 2.8 % |
Maturity of Operating and Finance Lease Liabilities [Table Text Block] | Operating lease Finance lease 2024 $ 785,707 $ 804,044 2025 702,899 800,510 2026 692,137 764,105 2027 692,137 1,320,097 2028 566,381 356,983 Thereafter 1,810,499 130,196 Total payment under lease agreements 5,249,760 4,175,935 Less imputed interest (1,191,323 ) (705,453 ) Total lease liability $ 4,058,437 $ 3,470,482 |
Note 7 - Intangible Assets (Tab
Note 7 - Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Notes Tables | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | 2023 2022 Customer relationships $ 489,273 $ 473,308 Patent cost 183,874 177,875 673,148 651,183 Less Accumulated amortization (558,555 ) (438,250 ) Intangible assets, net $ 114,593 $ 212,933 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Year ending December 31, Amortization Expenses 2024 72,902 2025 7,665 2026 7,665 2027 7,665 2028 7,665 Thereafter 11,031 $ 114,593 |
Note 9 - Accounts Payable and_2
Note 9 - Accounts Payable and Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Notes Tables | |
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | December 31, 2023 December 31, 2022 Accounts payable $ 2,444,653 $ 1,389,355 Accrued payroll liabilities 1,223,712 510,727 Product warranty accrual 629,100 898,072 Other accrued expenses 1,697,730 1,678,407 Total $ 5,995,195 $ 4,476,561 |
Note 10 - Long-term Debt (Table
Note 10 - Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | December 31, 2023 December 31, 2022 Senior Promissory Notes $ 6,000,000 6,000,000 Less: unamortized debt discount (1,311,989 ) (519,686 ) Senior Promissory Notes payable $ 4,688,011 $ 5,480,314 Current portion of Senior Promissory Notes payable - - Senior Promissory Notes payable, less current portion 4,688,011 5,480,314 Senior Promissory Notes payable $ 4,688,011 $ 5,480,314 |
Note 11 - Agreements, Commitm_2
Note 11 - Agreements, Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Notes Tables | |
Schedule of Product Warranty Liability [Table Text Block] | 2023 2022 Balance at January 1, $ 898,072 $ 962,313 Warranty costs charged to cost of goods sold 115,401 86,256 Utilization charges against reserve (408,234 ) (93,653 ) Foreign currency effect 23,861 (56,844 ) Balance at December 31, $ 629,100 $ 898,072 |
Note 12 - Income Taxes (Tables)
Note 12 - Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Notes Tables | |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | 2023 2022 Excess of tax over financial accounting $ 1,454,389 $ 973,859 Reserve for excess and obsolete inventory 190,841 145,910 Accrued interest - - Discount amortization 724,353 640,163 Deferred compensation - - Net operating loss carryover 11,580,458 11,057,361 Excess of book over tax depreciation (359,917 ) (272,243 ) Excess of book over tax work in progress 190,196 (253,930 ) Valuation allowance (13,881,379 ) (12,445,765 ) $ (101,059 ) $ (154,645 ) Distributed as: Long-term deferred tax asset - - Long-term deferred tax liability (101,059 ) (154,645 ) $ (101,059 ) $ (154,645 ) |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 2023 2022 Computed tax at expected statutory rate $ (1,843,244 ) $ (3,025,369 ) State and local income taxes, net of federal benefit (1,177 ) (1,532 ) Non-US income taxed at different rates (44,279 ) (138,596 ) Deferred compensation - 52,500 Non-deductible expenses 5,399 2,749 Non-taxable income - (541 ) Change in valuation allowance 1,755,013 3,035,205 Other (77,919 ) (161,826 ) Income tax expense (benefit) $ (206,207 ) $ (237,410 ) |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | 2023 2022 Current income taxes: Danish $ (148,668 ) $ (181,417 ) Federal - - State - - Current tax (benefit) $ - $ - Deferred income taxes: Book in excess of tax depreciation $ (386,673 ) $ (346,154 ) Work in progress (442,964 ) (294,233 ) Net operating loss carryover (402,448 ) (2,041,211 ) Valuation allowance 1,128,197 2,319,705 Deferred compensation - (52,500 ) Accrued interest - (13,125 ) Discount amortization 84,190 464,744 Accrued vacation - (4,305 ) Reserve for obsolete inventory (37,841 ) (88,915 Deferred tax expense (benefit) $ (57,539 ) $ (55,994 ) Total tax expense (benefit) $ (206,207 ) $ (237,410 ) |
Note 14 - Stockholders' Equity
Note 14 - Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 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 in connection with public offering and private placement 531,250 4,363,229 Common stock exchanged to prefunded warrant - - Warrants outstanding at December 31 5,021,354 4,490,104 |
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | December 31, 2023 Number of units Weighted Average Fair value Aggregated Intrinsic Outstanding, December 31, 2022 301,111 $ 4.80 $ - Granted 225,604 3.00 - Vested and settled with share issuance (212,254 ) (4.86 ) - Outstanding, December 31, 2023 314,461 $ 3.46 $ - |
Note 15 - Segment Reporting (Ta
Note 15 - Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | For the Year Ended December 31, Revenues 2023 2022 Water $ 7,705,080 $ 5,297,286 Ceramics 6,232,628 6,844,861 Plastics 3,736,529 3,528,606 Other 327,415 311,685 Total consolidated revenue $ 18,001,652 $ 15,982,438 For the Year Ended December 31, Loss 2023 2022 Water $ (736,148 ) $ (1,072,530 ) Ceramics (2,640,894 ) (4,648,768 ) Plastics (660,896 ) (794,942 ) Other (4,533,206 ) (7,652,867 ) Total consolidated Loss $ (8,571,145 ) $ (14,169,107 ) For the Year Ended December 31, Total assets 2023 2022 Water $ 9,432,991 $ 7,781,211 Ceramics 14,550,872 13,808,529 Plastics 759,745 1,099,019 Other 11,228,239 17,436,896 Total consolidated assets $ 35,971,847 $ 40,125,655 |
Note 16 - Significant Custome_2
Note 16 - Significant Customers / Concentration (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Notes Tables | |
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | For the Year Ended December 31, 2023 2022 Customer A - % 13 % December 31, 2023 December 31, 2022 Customer B 22 % 17 % Customer C 13 % - % Customer D - % 20 % Customer E - % 10 % |
Schedule II Valuation and Qua_2
Schedule II Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Notes Tables | |
Valuation Allowances and Reserves, Bad Debt Expense and Reserve for Obsolete Inventory [Table Text Block] | 2023 2022 Bad debt expense 82,066 (24,534 ) Reserve for obsolete inventory 177,953 404,160 |
Valuation Allowances and Reserves [Table Text Block] | Balance Beginning of Year Charges to Costs and Expenses Deductions (1) Balance End of Year Year Ended December 31, 2023 Allowance for inventory obsolescence $ 663,227 $ 177,953 $ 26,278 $ 867,458 Allowance for doubtful accounts 59,559 82,066 (6,713 ) 134,912 Totals $ 722,786 $ 260,019 $ 19,565 $ 1,002,370 Year Ended December 31, 2022 Allowance for inventory obsolescence $ 268,470 $ 404,160 $ (9,403 ) $ 663,227 Allowance for doubtful accounts 409,076 (24,534 ) (324,983 ) 59,559 Totals $ 677,546 $ 379,626 $ (334,386 ) $ 722,786 |
Valuation and Qualifying Accounts, Allowance for Credit Loss [Table Text Block] | 2023 2022 Allowance for doubtful accounts at the beginning of the period $ 59,559 $ 409,076 Bad debt expense 82,066 (24,534 ) Receivables written off during the periods (10,298 ) (295,778 ) Effect of currency translation 3,585 (29,205 ) Allowance for doubtful accounts at the end of the period $ 134,912 $ 59,559 |
Note 1 - Summary of Significa_3
Note 1 - Summary of Significant Accounting Policies (Details Textual) | 12 Months Ended | |||
May 26, 2023 $ / shares | Dec. 31, 2023 USD ($) $ / shares | 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 |
Restricted Cash and Cash Equivalents, Current | $ 941,361 | $ 1,440,394 | ||
Cash, Uninsured Amount | 0 | 12,999,271 | ||
Tangible Asset Impairment Charges | 0 | 0 | ||
Advertising Expense | 70,580 | 144,043 | ||
Research and Development Expense, Total | 1,418,842 | 1,835,890 | ||
Employees [Member] | ||||
Share-Based Payment Arrangement, Expense | $ 627,904 | $ 934,423 | ||
Customer Relationships [Member] | ||||
Finite-Lived Intangible Asset, Useful Life (Year) | 5 years | |||
Minimum [Member] | ||||
Property, Plant and Equipment, Useful Life (Year) | 3 years | |||
Finite-Lived Intangible Asset, Useful Life (Year) | 1 year | |||
Maximum [Member] | ||||
Property, Plant and Equipment, Useful Life (Year) | 10 years | |||
Finite-Lived Intangible Asset, Useful Life (Year) | 10 years | |||
Reverse Stock Split [Member] | ||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 8 | |||
LiqTech USA [Member] | LiqTech International DK [Member] | ||||
Percentage of Subsidiary Owned | 100% | |||
LiqTech USA [Member] | LiqTech NA [Member] | ||||
Percentage of Subsidiary Owned | 100% | |||
LiqTech USA [Member] | ||||
Noncontrolling Interest, Ownership Percentage by Parent | 100% |
Note 1 - Summary of Significa_4
Note 1 - Summary of Significant Accounting Policies - Allowance for Doubtful Accounts (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Allowance for doubtful accounts | $ 59,559 | $ 409,076 |
Bad debt expense | 82,066 | (24,534) |
Receivables written off during the periods | (10,298) | (295,778) |
Effect of currency translation | 3,585 | (29,205) |
Allowance for doubtful accounts | $ 134,912 | $ 59,559 |
Note 1 - Summary of Significa_5
Note 1 - Summary of Significant Accounting Policies - Net Sales by Geographical Region (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Revenue, Percentage | 100% | 100% |
Revenue | $ 18,001,652 | $ 15,982,438 |
Reportable Geographical Components [Member] | Americas [Member] | ||
Revenue, Percentage | 12% | 7% |
Revenue | $ 2,125,460 | $ 1,073,433 |
Reportable Geographical Components [Member] | Asia Pacific [Member] | ||
Revenue, Percentage | 14% | 21% |
Revenue | $ 2,506,215 | $ 3,406,420 |
Reportable Geographical Components [Member] | Europe [Member] | ||
Revenue, Percentage | 65% | 59% |
Revenue | $ 11,820,674 | $ 9,379,337 |
Reportable Geographical Components [Member] | Middle East and Africa [Member] | ||
Revenue, Percentage | 9% | 13% |
Revenue | $ 1,549,303 | $ 2,123,248 |
Note 1 - Summary of Significa_6
Note 1 - Summary of Significant Accounting Policies - Sales by Product Line (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Revenue, Percentage | 100% | 100% |
Revenue | $ 18,001,652 | $ 15,982,438 |
Water Segment [Member] | ||
Revenue, Percentage | 42% | 33% |
Revenue | $ 7,705,080 | $ 5,297,286 |
Ceramics Segment [Member] | ||
Revenue, Percentage | 35% | 43% |
Revenue | $ 6,232,628 | $ 6,844,861 |
Plastics Segment [Member] | ||
Revenue, Percentage | 21% | 22% |
Revenue | $ 3,736,529 | $ 3,528,606 |
Corporate Segment [Member] | ||
Revenue, Percentage | 2% | 2% |
Revenue | $ 327,415 | $ 311,685 |
Note 1 - Summary of Significa_7
Note 1 - Summary of Significant Accounting Policies - Contract Assets and Liabilities (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cost incurred | $ 3,225,728 | $ 3,860,179 |
Unbilled project deliveries | 582,557 | 950,105 |
VAT | 329,980 | 229,006 |
Other receivables | 92,619 | 45,814 |
Prepayments | (1,688,427) | (3,363,039) |
Deferred Revenue | (33,360) | (118,327) |
Contract with Customer, Asset (Liability), Net | 2,509,097 | 1,603,738 |
Contract assets | 2,891,744 | 2,253,295 |
Contract liabilities | (382,647) | (649,557) |
Contract with Customer, Asset (Liability), Net | $ 2,509,097 | $ 1,603,738 |
Note 2 - Going Concern (Details
Note 2 - Going Concern (Details Textual) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Cash and Cash Equivalents, at Carrying Value | $ 10,422,181 | |
Working Capital Deficit | 14,590,430 | |
Retained Earnings (Accumulated Deficit) | (75,922,180) | $ (67,351,035) |
Assets | 35,971,847 | 40,125,655 |
Liabilities | $ 18,695,831 | $ 16,816,283 |
Note 3 - Restructuring Costs (D
Note 3 - Restructuring Costs (Details Textual) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
May 10, 2022 USD ($) | May 10, 2022 DKK (kr) | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Mar. 31, 2022 USD ($) | |
Restructuring Charges, Total | $ 0 | $ 1,893,166 | |||||
Capex Commitments [Member] | |||||||
Other Commitment, Total | $ 10,300,000 | ||||||
CEO Separation [Member] | |||||||
Restructuring Charges, Total | 0 | 228,975 | |||||
Employee Severance [Member] | |||||||
Restructuring Charges, Total | 0 | 158,199 | |||||
Facility Closing [Member] | |||||||
Restructuring Charges, Total | 0 | 275,445 | |||||
Capex Commitments [Member] | |||||||
Restructuring Charges, Total | $ 0 | 813,994 | |||||
Restructuring Program [Member] | |||||||
Restructuring Charges, Total | $ 1,893,166 | ||||||
Impairment, Long-Lived Asset, Held-for-Use, Total | 240,576 | ||||||
Inventory Write-down | 175,977 | ||||||
Restructuring Program [Member] | CEO Separation [Member] | |||||||
Restructuring Charges, Total | $ 228,975 | kr 1,605,000 | |||||
Restructuring Program [Member] | Employee Severance [Member] | |||||||
Restructuring Charges, Total | $ 158,199 | ||||||
Restructuring and Related Cost, Percentage Reduction | 25% | ||||||
Restructuring Program [Member] | Facility Closing [Member] | |||||||
Restructuring Charges, Total | $ 275,445 | ||||||
Restructuring Program [Member] | Capex Commitments [Member] | |||||||
Restructuring Reserve, Ending Balance | $ 668,606 | $ 813,994 | $ 813,994 | ||||
Restructuring Reserve, Accrual Adjustment | $ 145,388 |
Note 3 - Restructuring Costs -
Note 3 - Restructuring Costs - Restructuring Costs (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Restructuring costs | $ 0 | $ 1,893,166 |
CEO Separation [Member] | ||
Restructuring costs | 0 | 228,975 |
Employee Severance [Member] | ||
Restructuring costs | 0 | 158,199 |
Facility Closing [Member] | ||
Restructuring costs | 0 | 275,445 |
Capex Commitments [Member] | ||
Restructuring costs | 0 | 813,994 |
Write-down [Member] | ||
Restructuring costs | $ 0 | $ 416,553 |
Note 4 - Inventory - Summary of
Note 4 - Inventory - Summary of Inventory (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Furnace parts and supplies | $ 55,177 | $ 66,495 |
Raw materials | 3,301,526 | 2,474,227 |
Work in process | 1,271,458 | 982,973 |
Finished goods and filtration systems | 1,507,113 | 1,201,533 |
Reserve for excess and obsolescence | (867,458) | (663,227) |
Net Inventory | $ 5,267,816 | $ 4,062,001 |
Note 5 - Property and Equipme_3
Note 5 - Property and Equipment (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Depreciation, Total | $ 2,472,031 | $ 2,007,112 |
Cost of Sales [Member] | ||
Depreciation, Total | 2,178,993 | |
Operating Expense [Member] | ||
Depreciation, Total | $ 293,038 |
Note 5 - Property and Equipme_4
Note 5 - Property and Equipment - Summary of Property and Equipment (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Property and equipment, gross | $ 20,835,366 | $ 17,343,306 |
Less Accumulated Depreciation | (11,828,200) | (9,046,499) |
Net Property and Equipment | 9,007,166 | 8,296,807 |
Production Equipment [Member] | ||
Property and equipment, gross | 9,433,581 | 8,027,589 |
Production Equipment Under Finance Lease [Member] | ||
Property and equipment, gross | 5,182,375 | 3,625,558 |
Lab Equipment [Member] | ||
Property and equipment, gross | 130,909 | 118,935 |
Computer Equipment [Member] | ||
Property and equipment, gross | 1,141,790 | 1,070,437 |
Vehicles [Member] | ||
Property and equipment, gross | $ 26,897 | 26,020 |
Furniture and Fixtures [Member] | ||
Useful Life (Year) | 5 years | |
Property and equipment, gross | $ 1,474,032 | 1,141,424 |
Furniture and Fixtures Under Finance Lease [Member] | ||
Useful Life (Year) | 5 years | |
Property and equipment, gross | $ 260,911 | 252,397 |
Leasehold Improvements [Member] | ||
Property and equipment, gross | 3,184,871 | 3,080,946 |
Property, Plant and Equipment Not Under Finance Lease [Member] | ||
Less Accumulated Depreciation | (10,950,622) | (8,501,846) |
Property, Plant and Equipment Under Finance Lease [Member] | ||
Less Accumulated Depreciation | $ (877,578) | $ (544,653) |
Minimum [Member] | ||
Useful Life (Year) | 3 years | |
Minimum [Member] | Production Equipment [Member] | ||
Useful Life (Year) | 3 years | |
Minimum [Member] | Production Equipment Under Finance Lease [Member] | ||
Useful Life (Year) | 3 years | |
Minimum [Member] | Lab Equipment [Member] | ||
Useful Life (Year) | 3 years | |
Minimum [Member] | Computer Equipment [Member] | ||
Useful Life (Year) | 3 years | |
Minimum [Member] | Vehicles [Member] | ||
Useful Life (Year) | 3 years | |
Minimum [Member] | Leasehold Improvements [Member] | ||
Useful Life (Year) | 5 years | |
Maximum [Member] | ||
Useful Life (Year) | 10 years | |
Maximum [Member] | Production Equipment [Member] | ||
Useful Life (Year) | 10 years | |
Maximum [Member] | Production Equipment Under Finance Lease [Member] | ||
Useful Life (Year) | 10 years | |
Maximum [Member] | Lab Equipment [Member] | ||
Useful Life (Year) | 10 years | |
Maximum [Member] | Computer Equipment [Member] | ||
Useful Life (Year) | 5 years | |
Maximum [Member] | Vehicles [Member] | ||
Useful Life (Year) | 5 years | |
Maximum [Member] | Leasehold Improvements [Member] | ||
Useful Life (Year) | 10 years |
Note 6 - Leases (Details Textua
Note 6 - Leases (Details Textual) | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Operating Lease, Payments | $ 754,490 |
Finance Lease, Principal Payments | 441,696 |
Finance Lease Expense | 159,766 |
Other Expense [Member] | |
Operating Lease, Payments | $ 725,337 |
Note 6 - Leases - Balance Sheet
Note 6 - Leases - Balance Sheet Information (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Operating lease right-of-use assets | $ 4,055,837 | $ 3,271,997 |
Operating lease liabilities – current | 531,355 | 561,182 |
Operating lease liabilities – long-term | 3,527,082 | 2,710,815 |
Total operating lease liability | 4,058,437 | 3,271,997 |
Property and equipment, at cost | 5,443,287 | 3,877,955 |
Accumulated depreciation | (877,578) | (544,653) |
Finance lease liabilities – current | 590,550 | 399,198 |
Finance lease liabilities – long-term | 2,879,932 | 2,384,011 |
Total finance lease liabilities | $ 3,470,482 | $ 2,783,209 |
Operating leases (Year) | 8 years 3 months 18 days | 9 years 7 months 6 days |
Finance leases (Year) | 4 years 3 months 18 days | 5 years 4 months 24 days |
Operating leases | 6.70% | 6.20% |
Finance leases | 6% | 2.80% |
Property and equipment, Net [Member] | ||
Property and equipment, net | $ 4,565,709 | $ 3,333,302 |
Note 6 - Leases - Maturities of
Note 6 - Leases - Maturities of Lease Liabilities (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
2024, operating lease | $ 785,707 | |
2024, financing lease | 804,044 | |
2025, operating lease | 702,899 | |
2025, financing lease | 800,510 | |
2026, operating lease | 692,137 | |
2026, financing lease | 764,105 | |
2027, operating lease | 692,137 | |
2027, financing lease | 1,320,097 | |
2028, operating lease | 566,381 | |
2028, financing lease | 356,983 | |
Thereafter, operating lease | 1,810,499 | |
Thereafter, finance lease | 130,196 | |
Total payment under operating lease agreements | 5,249,760 | |
Total payment under lease agreements | 4,175,935 | |
Less imputed interest on operating lease | (1,191,323) | |
Less imputed interest on finance lease | (705,453) | |
Total operating lease liability | 4,058,437 | $ 3,271,997 |
Total finance lease liability | $ 3,470,482 | $ 2,783,209 |
Note 7 - Intangible Assets (Det
Note 7 - Intangible Assets (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Amortization of Intangible Assets | $ 105,522 | $ 81,019 |
Note 7 - Intangible Assets - Sc
Note 7 - Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Intangible assets | $ 673,148 | $ 651,183 |
Less Accumulated amortization | (558,555) | (438,250) |
Intangible assets, net | 114,593 | 212,933 |
Customer Relationships [Member] | ||
Intangible assets | 489,273 | 473,308 |
Patents [Member] | ||
Intangible assets | $ 183,874 | $ 177,875 |
Note 7 - Intangible Assets - Ex
Note 7 - Intangible Assets - Expected Future Amortization Expense (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
2024 | $ 72,902 | |
2025 | 7,665 | |
2026 | 7,665 | |
2027 | 7,665 | |
2028 | 7,665 | |
Thereafter | 11,031 | |
Intangible assets, net | $ 114,593 | $ 212,933 |
Note 8 - Lines of Credit (Detai
Note 8 - Lines of Credit (Details Textual) - Dec. 31, 2023 | USD ($) | EUR (€) |
Line of Credit Facility, Maximum Borrowing Capacity | $ 940,000 | € 850,000 |
Note 9 - Accounts Payable and_3
Note 9 - Accounts Payable and Accrued Liabilities - Schedule of Accounts Payable and Accrued Liabiltiies (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Accounts payable | $ 2,444,653 | $ 1,389,355 | |
Accrued payroll liabilities | 1,223,712 | 510,727 | |
Product warranty accrual | 629,100 | 898,072 | $ 962,313 |
Other accrued expenses | 1,697,730 | 1,678,407 | |
Total | $ 5,995,195 | $ 4,476,561 |
Note 10 - Long-term Debt (Detai
Note 10 - Long-term Debt (Details Textual) | 12 Months Ended | |||||||
Jun. 22, 2022 USD ($) $ / shares shares | Mar. 01, 2022 USD ($) | Apr. 08, 2021 USD ($) $ / shares shares | Dec. 31, 2023 USD ($) $ / shares | Dec. 31, 2022 USD ($) $ / shares | Oct. 13, 2023 USD ($) | Sep. 30, 2023 $ / shares shares | May 26, 2023 $ / 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 | ||||
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 | |||||||
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 | |||||||
Senior Promissory Notes [Member] | ||||||||
Debt Instrument, Face Amount | $ 6,000,000 | $ 6,000,000 | $ 6,000,000 | |||||
Interest Expense, Debt | 0 | 0 | ||||||
Amortization of Debt Issuance Costs | 400,903 | 176,063 | ||||||
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, Total | $ 695,749 | 1,311,989 | 519,686 | $ 1,193,206 | ||||
Senior Promissory Notes [Member] | Measurement Input, Expected Term [Member] | ||||||||
Debt Instrument, Measurement Input | 2.5 | 5 | ||||||
Senior Promissory Notes [Member] | Measurement Input, Share Price [Member] | ||||||||
Debt Instrument, Measurement Input | 3.44 | 3.89 | ||||||
Senior Promissory Notes [Member] | Measurement Input, Exercise Price [Member] | ||||||||
Debt Instrument, Measurement Input | 5.2 | 5.2 | ||||||
Senior Promissory Notes [Member] | Measurement Input, Price Volatility [Member] | ||||||||
Debt Instrument, Measurement Input | 0.808 | 73.66 | ||||||
Senior Promissory Notes [Member] | Measurement Input, Risk Free Interest Rate [Member] | ||||||||
Debt Instrument, Measurement Input | 0.0313 | 4.6 | ||||||
Senior Promissory Notes [Member] | Measurement Input, Forfeiture Rate [Member] | ||||||||
Debt Instrument, Measurement Input | 0 | 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 | |||||||
Repayments of Convertible Debt, Principal | 11,640,000 | |||||||
Repayments of Convertible Debt, Premium | $ 1,806,875 | |||||||
Interest Expense, Debt | 0 | 308,958 | ||||||
Amortization of Debt Issuance Costs | $ 0 | $ 2,213,065 |
Note 10 - Long-term Debt - Note
Note 10 - Long-term Debt - Notes Payable (Details) - Senior Promissory Notes [Member] - USD ($) | Dec. 31, 2023 | Oct. 13, 2023 | Dec. 31, 2022 | Jun. 22, 2022 |
Senior Promissory Notes | $ 6,000,000 | $ 6,000,000 | $ 6,000,000 | |
Less: unamortized debt discount | (1,311,989) | $ (1,193,206) | (519,686) | $ (695,749) |
Senior Promissory Notes payable | 4,688,011 | 5,480,314 | ||
Current portion of Senior Promissory Notes payable | 0 | 0 | ||
Senior Promissory Notes payable, less current portion | $ 4,688,011 | $ 5,480,314 |
Note 11 - Agreements, Commitm_3
Note 11 - Agreements, Commitments and Contingencies (Details Textual) | 12 Months Ended |
Dec. 31, 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 11 - Agreements and Commit
Note 11 - Agreements and Commitments - Changes in Warranty Obligations (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Balance | $ 898,072 | $ 962,313 |
Warranty costs charged to cost of goods sold | 115,401 | 86,256 |
Utilization charges against reserve | (408,234) | (93,653) |
Foreign currency effect | 23,861 | (56,844) |
Balance | $ 629,100 | $ 898,072 |
Note 12 - Income Taxes (Details
Note 12 - Income Taxes (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Deferred Tax Assets, Valuation Allowance | $ 13,881,379 | $ 12,445,765 |
LiqTech International AS and LiqTech Systems AS [Member] | ||
Deferred Tax Assets, Valuation Allowance | 6,303,000 | 5,226,000 |
LiqTech China [Member] | ||
Deferred Tax Assets, Valuation Allowance | 479,000 | 488,000 |
LiqTech International Inc and LiqTech NA [Member] | ||
Deferred Tax Assets, Valuation Allowance | 7,100,000 | 6,510,000 |
Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | ||
Operating Loss Carryforwards | 29,136,593 | |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ 590,000 | 1,146,000 |
Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | Latest Tax Year [Member] | ||
Operating Loss Carryforwards, Expiration Year | 2041 | |
Domestic Tax Authority [Member] | Danish Ministry of Taxation [Member] | ||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ 1,077,000 | |
Domestic Tax Authority [Member] | Chinese Ministry of Taxation [Member] | ||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 9,000 | |
Foreign Tax Authority [Member] | Danish Ministry of Taxation [Member] | ||
Operating Loss Carryforwards | 21,482,164 | |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 1,720,000 | |
Foreign Tax Authority [Member] | State Administration of Taxation, China [Member] | ||
Operating Loss Carryforwards | $ 1,914,858 | |
Foreign Tax Authority [Member] | Chinese Ministry of Taxation [Member] | ||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ 295,000 |
Note 12 - Income Taxes - Deferr
Note 12 - Income Taxes - Deferred Tax Assets (Liabilities) (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Excess of tax over financial accounting | $ 1,454,389 | $ 973,859 |
Reserve for excess and obsolete inventory | 190,841 | 145,910 |
Accrued interest | 0 | 0 |
Discount amortization | 724,353 | 640,163 |
Deferred compensation | 0 | 0 |
Net operating loss carryover | 11,580,458 | 11,057,361 |
Excess of book over tax depreciation | (359,917) | (272,243) |
Excess of book over tax work in progress | 190,196 | |
Excess of book over tax work in progress | (253,930) | |
Valuation allowance | (13,881,379) | (12,445,765) |
Deferred Tax Liabilities, Net | (101,059) | (154,645) |
Long-term deferred tax asset | 0 | 0 |
Long-term deferred tax liability | (101,059) | (154,645) |
Deferred Income Tax Liabilities, Net | $ (101,059) | $ (154,645) |
Note 12 - Income Taxes - Reconc
Note 12 - Income Taxes - Reconciliation of Income Tax Expense (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Computed tax at expected statutory rate | $ (1,843,244) | $ (3,025,369) |
State and local income taxes, net of federal benefit | (1,177) | (1,532) |
Non-US income taxed at different rates | (44,279) | (138,596) |
Deferred compensation | 0 | 52,500 |
Non-deductible expenses | 5,399 | 2,749 |
Non-taxable income | 0 | (541) |
Change in valuation allowance | 1,755,013 | 3,035,205 |
Other | (77,919) | (161,826) |
Total tax expense (benefit) | $ (206,207) | $ (237,410) |
Note 12 - Income Taxes - Compon
Note 12 - Income Taxes - Components of Income Tax Expense (Benefit) from Continuing Operations (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Current income taxes: | ||
Federal | $ 0 | $ 0 |
State | 0 | 0 |
Current tax (benefit) | 0 | 0 |
Book in excess of tax depreciation | (386,673) | (346,154) |
Work in progress | (442,964) | (294,233) |
Net operating loss carryover | (402,448) | (2,041,211) |
Valuation allowance | 1,128,197 | 2,319,705 |
Deferred compensation | 0 | (52,500) |
Accrued interest | 0 | (13,125) |
Discount amortization | 84,190 | 464,744 |
Accrued vacation | 0 | (4,305) |
Reserve for obsolete inventory | (37,841) | (88,915) |
Deferred tax expense (benefit) | (57,539) | (55,994) |
Total tax expense (benefit) | (206,207) | (237,410) |
Danish Ministry of Taxation [Member] | ||
Current income taxes: | ||
Danish | $ (148,668) | $ (181,417) |
Note 13 - Earnings Per Share (D
Note 13 - Earnings Per Share (Details Textual) - shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Restricted Stock Units (RSUs) [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 314,461 | 301,111 |
Prefunded Warrants [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 3,390,008 | 3,930,008 |
Warrant [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 1,091,346 | 560,096 |
Note 14 - Stockholders' Equit_2
Note 14 - Stockholders' Equity (Details Textual) | 1 Months Ended | 12 Months Ended | |||||||||||
Sep. 12, 2023 USD ($) shares | Aug. 25, 2023 USD ($) shares | Jun. 26, 2023 USD ($) shares | May 26, 2023 $ / shares | Jan. 03, 2023 USD ($) shares | Jun. 23, 2022 USD ($) $ / shares shares | May 17, 2022 USD ($) $ / shares shares | May 30, 2023 shares | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2013 USD ($) | Sep. 30, 2023 $ / shares shares | Apr. 08, 2021 $ / shares | |
Common Stock, Shares Authorized (in shares) | 50,000,000 | 50,000,000 | |||||||||||
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |||||||||
Common Stock, Shares, Issued (in shares) | 5,727,310 | 5,498,260 | |||||||||||
Preferred Stock, Shares Authorized (in shares) | 2,500,000 | 2,500,000 | |||||||||||
Preferred Stock, Par or Stated Value Per Share (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | |||||||||||
Preferred Stock, Shares Issued (in shares) | 0 | 0 | |||||||||||
Stock Issued During Period, Shares, Reverse Stock Splits (in shares) | 16,796 | ||||||||||||
Shares Issued, Price Per Share (in dollars per share) | $ / shares | $ 0.5 | ||||||||||||
Class of Warrant or Right, Issued During Period (in shares) | 531,250 | 4,363,229 | |||||||||||
Common Stock, Shares, Outstanding, Ending Balance (in shares) | 5,727,310 | 5,498,260 | |||||||||||
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 | $ | $ 627,904 | $ 934,423 | |||||||||||
Share-Based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount | $ | $ 688,990 | ||||||||||||
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) | $ / shares | $ 4 | ||||||||||||
Private Placement [Member] | |||||||||||||
Proceeds from Issuance of Debt | $ | $ 6,000,000 | ||||||||||||
Warrant Purchase Agreement [Member] | |||||||||||||
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ / shares | $ 0.008 | ||||||||||||
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) | $ / shares | $ 3.992 | ||||||||||||
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) | $ / shares | $ 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 | ||||||||||||
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 | ||||||||||||
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 | ||||||||||||
Reverse Stock Split [Member] | |||||||||||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 8 | ||||||||||||
Convertible Preferred Stock [Member] | |||||||||||||
Preferred Stock, Shares Issued (in shares) | 0 | ||||||||||||
Preferred Stock, Shares Outstanding (in shares) | 0 |
Note 14 - Stockholders' Equit_3
Note 14 - Stockholders' Equity - Warrants (Details) - shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Balance, Warrants (in shares) | 4,490,104 | 126,875 |
Warrants issued in connection with public offering and private placement (in shares) | 531,250 | 4,363,229 |
Common stock exchanged to prefunded warrant (in shares) | 0 | 0 |
Balance, Warrants (in shares) | 5,021,354 | 4,490,104 |
Note 14 - Stockholders' Equit_4
Note 14 - Stockholders' Equity - Share Incentive Plan Activity (Details) - Restricted Stock Units (RSUs) [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Outstanding, units (in shares) | 301,111 | |
Outstanding, weighted average grant-date fair value (in dollars per share) | $ 4.8 | |
Outstanding, aggregated intrinsic value | $ 0 | $ 0 |
Granted, units (in shares) | 225,604 | |
Granted, weighted average grant-date fair value (in dollars per share) | $ 3 | |
Vested and settled with share issuance, units (in shares) | (212,254) | |
Vested and settled with share issuance, weighted average grant-date fair value (in dollars per share) | $ (4.86) | |
Outstanding, December 31, 2023 (in shares) | 314,461 | |
Outstanding, December 31, 2023 (in dollars per share) | $ 3.46 |
Note 15 - Segment Reporting - S
Note 15 - Segment Reporting - Summary of Segment Activity (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Revenue | $ 18,001,652 | $ 15,982,438 |
Net Income (Loss) | (8,571,145) | (14,169,107) |
Segment assets | 35,971,847 | 40,125,655 |
Water Segment [Member] | ||
Revenue | 7,705,080 | 5,297,286 |
Net Income (Loss) | (736,148) | (1,072,530) |
Segment assets | 9,432,991 | 7,781,211 |
Water Segment [Member] | Operating Segments [Member] | ||
Revenue | 7,705,080 | 5,297,286 |
Ceramics Segment [Member] | ||
Revenue | 6,232,628 | 6,844,861 |
Net Income (Loss) | (2,640,894) | (4,648,768) |
Segment assets | 14,550,872 | 13,808,529 |
Ceramics Segment [Member] | Operating Segments [Member] | ||
Revenue | 6,232,628 | 6,844,861 |
Plastics Segment [Member] | ||
Revenue | 3,736,529 | 3,528,606 |
Plastics Segment [Member] | Operating Segments [Member] | ||
Revenue | 3,736,529 | 3,528,606 |
Plastic Products [Member] | ||
Net Income (Loss) | (660,896) | (794,942) |
Segment assets | 759,745 | 1,099,019 |
Other Segments [Member] | ||
Net Income (Loss) | (4,533,206) | (7,652,867) |
Segment assets | 11,228,239 | 17,436,896 |
Other Segments [Member] | Operating Segments [Member] | ||
Revenue | $ 327,415 | $ 311,685 |
Note 16 - Significant Custome_3
Note 16 - Significant Customers / Concentration (Details Textual) - Geographic Concentration Risk [Member] - Assets, Total [Member] | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
DENMARK | ||
Concentration Risk, Percentage | 98% | 65% |
UNITED STATES | ||
Concentration Risk, Percentage | 0% | 33% |
CHINA | ||
Concentration Risk, Percentage | 2% | 2% |
Note 16 - Significant Custome_4
Note 16 - Significant Customers / Concentration / Disaggregated Revenue - Concentration of Risk (Details) - Customer Concentration Risk [Member] | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Revenue Benchmark [Member] | Customer A [Member] | ||
Concentration Risk, Percentage | 0% | 13% |
Accounts Receivable [Member] | Customer B [Member] | ||
Concentration Risk, Percentage | 22% | 17% |
Accounts Receivable [Member] | Customer C [Member] | ||
Concentration Risk, Percentage | 13% | 0% |
Accounts Receivable [Member] | Customer D [Member] | ||
Concentration Risk, Percentage | 0% | 20% |
Accounts Receivable [Member] | Customer E [Member] | ||
Concentration Risk, Percentage | 0% | 10% |
Note 17 - Subsequent Events (De
Note 17 - Subsequent Events (Details Textual) - Subsequent Event [Member] | Jan. 03, 2024 USD ($) shares |
Board of Directors Chairman [Member] | |
Stock Issued During Period, Shares, Issued for Services (in shares) | shares | 24,500 |
Stock Issued During Period, Value, Issued for Services | $ | $ 73,500 |
Management [Member] | |
Stock Issued During Period, Shares, Issued for Services (in shares) | shares | 55,530 |
Stock Issued During Period, Value, Issued for Services | $ | $ 181,142 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts - Bad Debt Expense and Reserves for Obsolete Inventory (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Bad debt expense | $ 82,066 | $ (24,534) |
SEC Schedule, 12-09, Reserve, Inventory [Member] | ||
Bad debt expense | 82,066 | (24,534) |
Inventory Write-down | $ 177,953 | $ 404,160 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts - Valuation and Qualifying Accounts (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
Balance Beginning of Year | $ 722,786 | $ 677,546 | |
Charges to Costs and Expenses | 260,019 | 379,626 | |
Deductions | [1] | 19,565 | (334,386) |
Balance End of Year | 1,002,370 | 722,786 | |
SEC Schedule, 12-09, Reserve, Inventory [Member] | |||
Balance Beginning of Year | 663,227 | 268,470 | |
Charges to Costs and Expenses | 177,953 | 404,160 | |
Deductions | [1] | 26,278 | (9,403) |
Balance End of Year | 867,458 | 663,227 | |
SEC Schedule, 12-09, Allowance, Credit Loss [Member] | |||
Balance Beginning of Year | 59,559 | 409,076 | |
Charges to Costs and Expenses | 82,066 | (24,534) | |
Deductions | [1] | (6,713) | (324,983) |
Balance End of Year | $ 134,912 | $ 59,559 | |
[1]Includes write-offs, the impact of foreign currency exchange rates. |
Schedule II - Valuation and Q_3
Schedule II - Valuation and Qualifying Accounts - Rollforward for Allowance for Doubtful Accounts (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Allowance for doubtful accounts | $ 59,559 | $ 409,076 |
Bad debt expense | 82,066 | (24,534) |
Receivables written off during the periods | (10,298) | (295,778) |
Effect of currency translation | 3,585 | (29,205) |
Allowance for doubtful accounts | 134,912 | 59,559 |
SEC Schedule, 12-09, Allowance, Credit Loss [Member] | ||
Allowance for doubtful accounts | 59,559 | 409,076 |
Bad debt expense | 82,066 | (24,534) |
Receivables written off during the periods | (10,298) | (295,778) |
Effect of currency translation | 3,585 | (29,205) |
Allowance for doubtful accounts | $ 134,912 | $ 59,559 |