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BALLERUP, Denmark, May 14, 2025 /PRNewswire/ -- LiqTech International, Inc. (Nasdaq: LIQT) ("LiqTech"), a clean technology company that manufactures and markets highly specialized filtration technologies, today announced its financial results for the first quarter of 2025 for the period ended March 31, 2025.
Recent Financial Highlights
Outlook
Recent Operational Highlights
Management Commentary
"We successfully delivered a record commercial order for our PureFlow™ Mobile Units to the oil and gas industry during the first quarter of 2025 helping drive strong 36% sequential revenue growth. This order was a key milestone for LiqTech that further validates how our highly specialized filtrations solutions can benefit the global energy industry," commented Fei Chen, CEO of LiqTech. "As we enter the second quarter and remainder of 2025, we have multiple pilot and commercial projects underway that leverage our proprietary technology to address some of the most demanding environments, such as lithium brine production, positioning us to build upon the recent momentum we have gained."
"We also made significant progress with our China joint venture. Following the official grand opening in mid-April 2025, we received two marine scrubber orders scheduled for delivery over the next 12 months and entered into a new framework agreement for aftersales support which has already gained traction. With the global ship building market and numerous retrofits applications move towards cleaner fuel applications, China, with its strong global position, is expected to be a strong growth market for our solutions in the years to come."
"Our guidance for the second quarter is based on good sales development across a variety of our key products and market verticals and less dependent on any single larger system order. Beyond our pilot unit rental expansions, we are seeing a ramp up in DPF order intakes, an increase in swimming pool systems order, and growth in our plastics, all of which are expected to drive further revenue growth. With improved manufacturing utilization that should drive improved gross margins, and the full effect of our recent cost saving initiatives implemented, we are expected to further improve our profitability metrics," Chen concluded.
Q1 2025 Financial Results
Revenue for the quarter ended March 31, 2025, was $4.6 million compared to $4.2 million for the same period in 2024, representing an increase of 9.0%. Sequentially, revenue increased 36% compared to $3.4 million in the fourth quarter of 2024. The favorable change was attributable to an increase in liquid filtration systems, specifically a full-scale system delivery to the U.S., increased sales of plastics products and on par aftermarket sales, partly offset by a decrease in deliveries of ceramic membranes and DPFs. The Company believes that the decrease in sales of ceramic membranes and DPFs reflects temporary market conditions, with customers awaiting potential interest rate cuts.
Gross profit for the quarter ended March 31, 2025, was $0.1 million, reflecting a gross profit margin of 2.7%, compared to $0.3 million, or a gross profit margin of 6.4% in the same period of 2024. This decline was primarily driven by low margin on the full-scale liquid filtration system to the U.S., due to the first time manufacturing and development cost of the full scale system, furthermore, impacted by underutilization of our manufacturing capacity as a direct result of the slower sales in ceramic membranes and DPFs. This impact was partly offset by lower depreciation expenses. Included in the gross profit was depreciation of $1.4 million and $2.1 million for the three months ended March 31, 2025, and 2024, respectively.
Total operating expenses for the quarter ended March 31, 2025, were $2.3 on par with the same period in 2024.
Selling expenses increase due to a reversal of bonus accruals in 2023 and due to cost associated with the newly formed joint venture Nantong JiTRI LiqTech Green Energy Technology Co., Ltd. The increase was partially offset by decreased bad debt and depreciations.
General and administrative expenses were $1.4 million during the first quarter of 2025 compared to $1.5 million in the same period of 2024. The decrease was mainly attributable to non-recurring cost in the comparable period related to recruitment expenses associated with the CFO transition.
Research and development expenses for the three months ended March 31, 2025 were $0.2 million compared to $0.3 million for the same period in 2024. The decrease was primarily attributed to a reduction in average number of employees engaged in research and development activity as the Company streamlined and centralized the R&D function, partially offset by increased patent costs.
Total Other expense for the quarter ended March 31, 2025, was $0.2 million compared to $0.4 million for the comparable period in 2024, representing decreased expense of $0.2 million, or 51.4%. The change was primarily attributable to significant losses on disposal of property and equipment in the comparing period, partially offset by less gain on currency transactions for the three months ended March 31, 2025 as well as increased debt discount amortization due to the extension of the maturity date for the senior promissory notes.
Net loss for the quarter ended March 31, 2025 was $(2.4) million, compared to $(2.4) million in the prior year.
Cash on hand (including restricted cash) on March 31, 2025 was $10.4 million.
Conference Call Details
Date and Time: Wednesday, May 14, 2025, at 9:00 a.m. Eastern time
Call-in Information: Interested parties can access the conference call by dialing (833) 535-2206 or (412) 902-6741.
Webcast: Interested parties can access the conference call via a live webcast, which is available in the Investor Relations section of the Company's website at https://www.liqtech.com/investor-relations/ or at https://app.webinar.net/roA9QlO420D.
Replay: A teleconference replay of the call will be available for seven days, at (877) 344-7529 or (412) 317-0088, replay access code 9014836. A webcast replay will be available at https://app.webinar.net/roA9QlO420D.
About LiqTech International Inc.
LiqTech International, Inc., a Nevada corporation, is a high-tech filtration technology company that provides state-of-the-art ceramic silicon carbide filtration technologies for gas and liquid purification. LiqTech's silicon carbide membranes are designed to be used in the most challenging purification applications, and its silicon carbide filters are used to control diesel exhaust soot emissions. Using nanotechnology, LiqTech develops products using its proprietary silicon carbide technology, resulting in a wide range of component membranes, membrane systems, and filters for both microfiltration and ultrafiltration applications. By incorporating LiqTech's SiC liquid membrane technology with the Company´s extensive systems design experience and capabilities, LiqTech offers unique, modular designed filtration solutions for the most difficult water purification applications.
For more information, please visit www.liqtech.com
Follow LiqTech on Linkedln: http://www.linkedin.com/company/liqtech-international
Follow LiqTech on Twitter: https://twitter.com/LiqTech
Forward–Looking Statement
This press release contains "forward-looking statements." Although the forward-looking statements in this release reflect the good faith judgment of management, forward-looking statements are inherently subject to known and unknown risks and uncertainties that may cause actual results to be materially different from those discussed in these forward-looking statements. Readers are urged to carefully review and consider the various disclosures made by us in the reports filed with the Securities and Exchange Commission, including the risk factors that attempt to advise interested parties of the risks that may affect our business, financial condition, results of operation, and cash flows. If one or more of these risks or uncertainties materialize, or if the underlying assumptions prove incorrect, our actual results may vary materially from those expected or projected. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this release.
We assume no obligation to update any forward-looking statements to reflect any event or circumstance that may arise after the date of this release.
LiqTech Company Contact
Susan Keegan Elleskov
Head of Marketing
LiqTech International, Inc.
Phone: +45 31315941
www.liqtech.com
LiqTech Investor Contact
Robert Blum
Lytham Partners, LLC
Phone: 602-889-9700
[email protected]
LIQTECH INTERNATIONAL, INC. | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
March 31, | December 31, | |||||||
2025 | 2024 | |||||||
(Unaudited) | ||||||||
Assets | ||||||||
Current Assets: | ||||||||
Cash and restricted cash | $ | 10,447,432 | $ | 10,868,728 | ||||
Accounts receivable, net | 3,440,023 | 2,396,056 | ||||||
Inventories, net | 5,714,955 | 5,541,192 | ||||||
Contract assets | 850,986 | 1,666,698 | ||||||
Prepaid expenses and other current assets | 459,619 | 168,443 | ||||||
Total Current Assets | 20,913,015 | 20,641,117 | ||||||
Non-Current Assets: | ||||||||
Property and equipment, net | 6,451,419 | 6,618,822 | ||||||
Operating lease right-of-use assets | 4,469,577 | 4,450,822 | ||||||
Deposits and other assets | 469,447 | 456,658 | ||||||
Intangible assets, net | 38,885 | 39,367 | ||||||
Goodwill | 228,495 | 220,693 | ||||||
Total Non-Current Assets | 11,657,823 | 11,786,362 | ||||||
Total Assets | $ | 32,570,838 | $ | 32,427,479 | ||||
LIQTECH INTERNATIONAL, INC. | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED) | ||||||||
March 31, | December 31, | |||||||
2025 | 2024 | |||||||
(Unaudited) | ||||||||
Liabilities and Stockholders' Equity | ||||||||
Current Liabilities: | ||||||||
Accounts payable | $ | 1,759,043 | $ | 1,300,966 | ||||
Accrued expenses | 2,554,524 | 2,491,479 | ||||||
Current portion of finance lease liabilities | 486,220 | 458,347 | ||||||
Current portion of operating lease liabilities | 569,436 | 544,197 | ||||||
Contract liabilities | 138,810 | 109,319 | ||||||
Total Current Liabilities | 5,508,033 | 4,904,308 | ||||||
Non-Current Liabilities: | ||||||||
Deferred tax liability | 59,660 | 57,960 | ||||||
Finance lease liabilities, net of current portion | 1,665,330 | 1,600,931 | ||||||
Operating lease liabilities, net of current portion | 3,900,142 | 3,906,625 | ||||||
Loan from related party, net of current portion | 1,120,044 | - | ||||||
Notes payable, net | 5,251,593 | 5,303,563 | ||||||
Total Non-Current Liabilities | 11,996,769 | 10,869,079 | ||||||
Total Liabilities | 17,504,802 | 15,773,387 | ||||||
Stockholders' Equity: | ||||||||
Preferred stock; par value $0.001, 2,500,000 shares authorized, 0 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively | - | - | ||||||
Common stock; par value $0.001, 50,000,000 shares authorized and 9,606,024 and 9,475,443 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively | 9,606 | 9,475 | ||||||
Additional paid-in capital | 109,682,187 | 109,274,166 | ||||||
Accumulated deficit | (88,618,830) | (86,267,438) | ||||||
Accumulated other comprehensive loss | (6,013,765) | (6,362,111) | ||||||
Total Stockholders' Equity | 15,059,198 | 16,654,092 | ||||||
Noncontrolling Interest | 6,838 | - | ||||||
Total Equity | 15,066,036 | 16,654,092 | ||||||
Total Liabilities and Equity | $ | 32,570,838 | $ | 32,427,479 | ||||
LIQTECH INTERNATIONAL, INC. | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | ||||||||
For the Three Months Ended | ||||||||
March 31, | ||||||||
2025 | 2024 | |||||||
Revenue | $ | 4,617,541 | $ | 4,235,344 | ||||
Cost of goods sold | 4,492,485 | 3,964,242 | ||||||
Gross Profit | 125,056 | 271,102 | ||||||
Operating Expenses: | ||||||||
Selling expenses | 718,016 | 517,579 | ||||||
General and administrative expenses | 1,362,246 | 1,544,731 | ||||||
Research and development expenses | 230,123 | 254,812 | ||||||
Total Operating Expenses | 2,310,385 | 2,317,122 | ||||||
Loss from Operations | (2,185,329) | (2,046,020) | ||||||
Other Income (Expense): | ||||||||
Interest and other income | 68,751 | 69,086 | ||||||
Interest expense | (48,283) | (71,719) | ||||||
Amortization of debt discount | (168,030) | (146,040) | ||||||
Gain (loss) on foreign currency transactions | 35,516 | 255,536 | ||||||
Gain (loss) on disposal of property and equipment | (61,306) | (463,577) | ||||||
Total Other Expense | (173,352) | (356,714) | ||||||
Loss Before Income Taxes | (2,358,681) | (2,402,734) | ||||||
Income tax benefit | (339) | (14,439) | ||||||
Net Loss | $ | (2,358,342) | $ | (2,388,295) | ||||
Net Loss attributable to noncontrolling interest | (6,950) | - | ||||||
Net Loss attributable to LiqTech International, Inc. | (2,351,392) | (2,388,295) | ||||||
Loss Per Common Share – Basic and Diluted | $ | (0.25) | $ | (0.41) | ||||
Weighted-Average Common Shares Outstanding – Basic and Diluted | 9,602,354 | 5,804,702 | ||||||
SOURCE LiqTech International, Inc.
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