LiqTech International Announces Second Quarter 2023 Financial Results
BALLERUP,
Q2 2023 Financial Highlights
- Revenue of
, a$5.0 million 1% decrease from Q2 2022. - Gross profit margin of
23% compared to3% in Q2 2022. - Operating expenses of
, down$2.8 million 42% from Q2 2022. - Net loss of
, an improvement of$(1.6) million compared to$4.9 million in Q2 2022.$(6.5) million - Strong ending cash balance of
.$12.6 million
Recent Operational Highlights
- Signed commercial contracts for delivery of ten pool systems and increased order intake of both ceramic membranes and DPFs.
- Successfully performed on-site commissioning of our first MEG unit at customer's offshore platform in the Mediterranean.
- Entered into a Memorandum of Understanding (MoU) to explore the application of LiqTech's advanced filtration system for industrial water treatment in
China . - Delivered a pilot unit for phosphoric acid purification to Silicon Filter in
China .
Management Commentary
"During the second quarter, we continued to successfully execute against our strategy to drive profitable revenue growth through enhanced recurring business solutions, resulting in
"Our strategic focus to enhance our recurring revenue opportunities--including installed base sales, diesel particulate filters, ceramic membranes, and plastics business--continues to deliver the intended results. Across all of these key areas, we have improved our pricing excellence to deliver increased gross profits. With an expectation for continued improvement in contribution margins and efficient management of operating expenses, we are closing the gap to achieve quarterly breakeven."
"From a system sales standpoint, swimming pool systems have been a leading driver for us during 2023 following the launch of our enhanced Aqua Solution® based on our proprietary silicon carbide (SiC) membrane technology. Year-to-date, we have received fifteen pool system orders from a wide variety of geographic locations. Additionally, oil and gas-related solutions continue to advance, particularly through our collaboration with NESR as we have built up an aligned pipeline with clear targets in the near term. We also completed the on-site commission of our first MEG unit, providing us confidence for additional opportunities within this market subsegment. Furthermore, we are making progress in phosphoric acid purification with the delivery of a pilot unit to Silicon Filter in
"We believe the second half of the year will show continued growth and improved operating performance as we look to mark a major milestone in the near future of sustained profitability," Chen concluded.
Q2 2023 Financial Results
Revenue for quarter ended June 30, 2023, was
The positive development in the current quarter was partly offset by a year-on-year decrease in sales of liquid filtration systems and DPFs, as the quarter ended June 30, 2022, benefitted from the delivery of a sizable oil & gas project in the
Gross profit for the quarter ended June 30, 2023 was
Total operating expenses for the quarter ended June 30, 2023 were
Other Income (Expense) for the quarter ended June 30, 2023 was
Net Loss for the quarter ended June 30, 2023 was
Cash on hand (including restricted cash) on June 30, 2023 was
2023 Full-Year Outlook
The Company expects revenue growth of 20
Conference Call Details
Date and Time: Thursday, August 10, 2023, at 9:00 a.m. ET
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/WxAljrVjGy6.
Replay: A teleconference replay of the call will be available until August 17, 2023, at (877) 344-7529 or (412) 317-0088, confirmation # 8122262.
About LiqTech International Inc.
LiqTech International, Inc., a
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.
Company Contact: Simon Stadil, Chief Financial Officer, LiqTech International, Inc., Phone: +45 3140 9128, www.liqtech.com;
Investor Contact: Robert Blum, Lytham Partners, LLC, Phone: (602) 889-9700, liqt@lythampartners.com, www.lythampartners.com
LIQTECH INTERNATIONAL, INC. AND SUBSIDIARIES | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
As of | As of | |||||||
June 30, | December 31, | |||||||
2023 | 2022 | |||||||
(Unaudited) | ||||||||
Assets | ||||||||
Current Assets: | ||||||||
Cash and restricted cash | $ | 12,594,689 | $ | 16,597,371 | ||||
Accounts receivable, net of allowance for doubtful accounts of | 2,960,421 | 2,310,344 | ||||||
Inventories, net of allowance for excess and obsolete inventory of | 4,423,280 | 4,062,001 | ||||||
Contract assets | 2,406,402 | 2,253,295 | ||||||
Prepaid expenses and other current assets | 2,816,823 | 1,720,902 | ||||||
Assets held for sale | 694,601 | 723,872 | ||||||
Total Current Assets | 25,896,216 | 27,667,785 | ||||||
Long-Term Assets: | ||||||||
Property and equipment, net of accumulated depreciation of | 7,526,475 | 8,296,807 | ||||||
Operating lease right-of-use assets | 3,046,933 | 3,271,997 | ||||||
Deposits and other assets | 457,111 | 450,038 | ||||||
Intangible assets, net of accumulated amortization of | 164,978 | 212,933 | ||||||
Goodwill | 229,999 | 226,095 | ||||||
Total Long-Term Assets | 11,425,496 | 12,457,870 | ||||||
Total Assets | $ | 37,321,712 | $ | 40,125,655 |
LIQTECH INTERNATIONAL, INC. AND SUBSIDIARIES | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED) | ||||||||
As of | As of | |||||||
June 30, | December 31, | |||||||
2023 | 2022 | |||||||
(Unaudited) | ||||||||
Liabilities and Stockholders' Equity | ||||||||
Current Liabilities: | ||||||||
Accounts payable | $ | 1,963,042 | $ | 1,389,355 | ||||
Accrued expenses | 2,998,844 | 3,087,206 | ||||||
Current portion of finance lease obligations | 413,505 | 399,198 | ||||||
Current portion of operating lease liabilities | 589,127 | 561,182 | ||||||
Contract liabilities | 878,201 | 649,557 | ||||||
Total Current Liabilities | 6,842,719 | 6,086,498 | ||||||
Deferred tax liability | 128,542 | 154,645 | ||||||
Finance lease obligations, net of current portion | 2,216,535 | 2,384,011 | ||||||
Operating lease liabilities, net of current portion | 2,457,806 | 2,710,815 | ||||||
Senior promissory notes payable, less current portion | 5,651,632 | 5,480,314 | ||||||
Total Long-term Liabilities | 10,454,515 | 10,729,785 | ||||||
Total Liabilities | 17,297,234 | 16,816,283 | ||||||
Stockholders' Equity: | ||||||||
Preferred stock; par value | - | - | ||||||
Common stock; par value | 5,700 | 5,515 | ||||||
Additional paid-in capital | 97,326,371 | 96,975,459 | ||||||
Accumulated deficit | (71,295,830) | (67,351,035) | ||||||
Accumulated other comprehensive loss | (6,011,753) | (6,320,567) | ||||||
Total Stockholders' Equity | 20,024,478 | 23,309,372 | ||||||
Total Liabilities and Stockholders' Equity | $ | 37,321,712 | $ | 40,125,655 |
CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED) | ||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | ||||||||||||||||
For the Three Months | For the Six Months | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Revenue | $ | 4,990,019 | $ | 5,018,292 | $ | 9,001,538 | $ | 8,655,528 | ||||||||
Cost of Goods Sold | 3,827,491 | 4,870,152 | 7,447,668 | 8,261,847 | ||||||||||||
Gross Profit | 1,162,528 | 148,140 | 1,553,870 | 393,681 | ||||||||||||
Operating Expenses: | ||||||||||||||||
Selling expenses | 1,028,225 | 1,196,513 | 2,210,660 | 2,256,461 | ||||||||||||
General and administrative expenses | 1,377,483 | 1,265,543 | 2,436,432 | 3,182,060 | ||||||||||||
Research and development expenses | 359,784 | 490,836 | 702,403 | 1,093,573 | ||||||||||||
Restructuring costs | - | 1,788,827 | - | 1,788,827 | ||||||||||||
Total Operating Expense | 2,765,492 | 4,741,719 | 5,349,495 | 8,320,921 | ||||||||||||
Loss from Operations | (1,602,964) | (4,593,579) | (3,795,625) | (7,927,240) | ||||||||||||
Other Income (Expense) | ||||||||||||||||
Interest and other income | 116,545 | 342,624 | 168,218 | 342,723 | ||||||||||||
Interest expense | (45,898) | (159,557) | (57,899) | (366,018) | ||||||||||||
Amortization discount on Notes | (86,790) | (1,922,618) | (171,318) | (2,219,956) | ||||||||||||
Gain (Loss) on currency transactions | 49,494 | (342,202) | (116,784) | (266,209) | ||||||||||||
Gain on lease termination | - | 153,575 | - | 153,575 | ||||||||||||
Gain on sale of fixed assets | - | 661 | - | 661 | ||||||||||||
Total Other Income (Expense) | 33,351 | (1,927,517) | (177,783) | (2,355,224) | ||||||||||||
Loss Before Income Taxes | (1,569,613) | (6,521,096) | (3,973,408) | (10,282,464) | ||||||||||||
Income Tax Benefit | (14,321) | (14,037) | (28,613) | (28,981) | ||||||||||||
Net Loss | $ | (1,555,292) | $ | (6,507,059) | $ | (3,944,795) | $ | (10,253,483) | ||||||||
Basic and Diluted Loss Per Share | $ | (0.27) | $ | (1.62) | $ | (0.70) | $ | (3.05) | ||||||||
Basic and Diluted Weighted Average Common Shares | 5,676,803 | 4,028,983 | 5,673,605 | 3,361,004 |
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SOURCE LiqTech International, Inc.