Form 10-Q - Quarterly report [Sections 13 or 15(d)]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.20549

FORM 10-Q

(Mark One)

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2024

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to to

Commission File Number: 001-36210

LiqTech International, Inc.

(Exact name of registrant as specified in its charter)

Nevada		20-1431677
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

Industriparken 22C, DK 2750 Ballerup, Denmark
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: +45 3131 5941

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading symbol(s)

Name of each exchange on which

registered

Common Stock, $0.001 par value

LIQT

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐.

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act (Check one):

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act): Yes ☐ No ☒

As of August 14, 2024, there were 5,819,272 shares of Common Stock, $0.001 par value per share, outstanding.

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LIQTECH INTERNATIONAL, INC. AND SUBSIDIARIES

Quarterly Report on Form 10-Q

For the Period Ended June 30, 2024

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	Page
PART I. FINANCIAL INFORMATION	5

Item 1. Financial Statements	5

Condensed Consolidated Balance Sheets as of June 30, 2024 (unaudited) and December 31, 2023	5

Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2024 and June 30, 2023 (unaudited)	7

Condensed Consolidated Statements of Comprehensive Loss for the Three and Six Months Ended June 30, 2024 and June 30, 2023 (unaudited)	8

Condensed Consolidated Statements of Stockholders’ Equity for the Three and Six Months ended June 30, 2024 and June 30, 2023 (unaudited)	9

Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2024 and June 30, 2023 (unaudited)	11

Notes to Condensed Consolidated Financial Statements (unaudited)	13

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations	20

Item 3. Quantitative and Qualitative Disclosures About Market Risk	26

Item 4. Controls and Procedures	27

PART II. OTHER INFORMATION	28

Item 1. Legal Proceedings	28

Item 1A. Risk Factors	28

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	28

Item 3. Defaults Upon Senior Securities	28

Item 4. Mine Safety Disclosures	28

Item 5. Other Information	28

Item 6. Exhibits	29

SIGNATURES	30

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FORWARD-LOOKING STATEMENTS

Certain statements made in this Quarterly Report on Form 10-Q are “forward-looking statements” regarding the plans and objectives of management for future operations and market trends and expectations. Such statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

The forward-looking statements included herein are based on current expectations that involve numerous risks and uncertainties. Our plans and objectives are based, in part, on assumptions involving the continued expansion of our business. Assumptions relating to the foregoing involve judgments with respect to, among other things, future political, legislative, economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond our control. This is especially underlined by the potential impacts from the prevailing macro-economic uncertainty on the Company, including the related effects to our business operations, results of operations, cash flows, and financial position. Although we believe that our assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate and, therefore, there can be no assurance that the forward-looking statements included in this Quarterly Report on Form 10-Q will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by us or any other person that our objectives and plans will be achieved. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.

Forward-looking statements include, but are not limited to, statements concerning:

	●	Our ability to continue as a going concern;

	●	The impact from the prevailing geopolitical uncertainty including the war between Ukraine and Russia as well as the escalating conflict between Hamas and Israel in the Middle East;

	●	Operational exposure related to increased macro-economic uncertainty, risk of a prolonged period of inflationary pressure, potential energy shortages, and/or volatile energy and electricity prices across Europe;

	●	The resurgence of COVID-19 or similar global pandemics;

	●	Our dependence on a few major customers and the ability to maintain future relationships with one or more of these major customers;

	●	Our ability to operate with financial stability and secure access to external financing and adequate liquidity;

	●	Our ability to secure and source supplies of raw materials and key components in due time and at competitive prices;

	●	Our reliance on subcontractors or delivery of new machinery to develop sufficient manufacturing capacity to meet demand;

	●	Our ability to achieve revenue growth and penetrate new markets;

	●	Our dependence on the expertise and experience of our management team and the retention of key employees;

	●	Our reliance and access to qualified personnel to expand our business;

	●	Our ability to adapt to potentially adverse changes in legislative, regulatory and political frameworks;

	●	Changes in emissions and environmental regulations, and potential further tightening of emission standards;

	●	Our dependence on corporate or government funding for emissions control programs;

	●	Our ability to compete under changing governmental standards by which our products are evaluated;

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	●	Exposure to potentially adverse tax consequences;

	●	The financial impact from the fluctuation and volatility of foreign currencies;

	●	The potential monetary costs of defending our intellectual property rights;

	●	Our ability to successfully protect our intellectual property rights and manufacturing know-how;

	●	The possibility of a dispute over intellectual property developed in conjunction with third parties with whom we have contractual relationships;

	●	The possibility that we could become subject to litigation that could be costly, limit or cancel our intellectual property rights or divert time and efforts away from our business operations;

	●	The potential negative impact to the sale of our products caused by technological advances of our competitors;

	●	The potential liability for environmental harm or damages resulting from technical faults or failures of our products;

	●	The possibility that an investor located within the United States may not be able to, or find it difficult to, enforce any judgments obtained in United States courts because a significant portion of our assets and some of our officers and directors may be located outside of the United States;

	●	The possibility that we may not be able to develop and maintain an effective system of internal control over financial reporting, leading to inaccurate reports of our financial results;

	●	The possibility of breaches in the security of our information technology systems;

	●	The liability risk of our compliance to environmental laws and regulations and evolving disclosure requirements;

	●	The potential negative impact of more stringent environmental laws and regulations, along with evolving disclosure requirements, as governmental agencies seek to improve minimum standards; and

	●	The possibility that enforcement actions to suspend or severely restrict our business operations could be brought against the Company for our failure to comply with laws or regulations and the potential costs of defending against such actions.

Any forward-looking statement made by us herein speaks only as of the date on which such statement is made, and the Company undertakes no obligation to update any forward-looking statement or statements to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. New factors emerge from time to time, and it is not possible for management to predict all such factors, nor can we assess the impact of each such factor on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.

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PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

LIQTECH INTERNATIONAL, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

	June 30,		December 31,
	2024		2023
	(Unaudited)
Assets

Current Assets:
Cash and restricted cash	$	5,489,776	$	10,422,181
Accounts receivable, net		2,804,625		3,171,047
Inventories, net		5,620,247		5,267,816
Contract assets		2,878,573		2,891,744
Prepaid expenses and other current assets		389,181		337,391

Total Current Assets		17,182,402		22,090,179

Long-Term Assets:
Property and equipment, net		6,935,852		9,007,166
Operating lease right-of-use assets		3,657,512		4,055,837
Deposits and other assets		517,123		470,349
Intangible assets, net		60,128		114,593
Goodwill		226,285		233,723

Total Long-Term Assets		11,396,900		13,881,668

Total Assets	$	28,579,302	$	35,971,847

The accompanying notes are an integral part of these condensed consolidated financial statements.

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LIQTECH INTERNATIONAL, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)

	June 30,			December 31,
	2024			2023
	(Unaudited)
Liabilities and Stockholders’ Equity

Current Liabilities:
Accounts payable	$	1,813,943		$	2,444,653
Accrued expenses		3,189,439			3,550,542
Current portion of finance lease liabilities		446,425			590,550
Current portion of operating lease liabilities		476,298			531,355
Contract liabilities		333,505			382,647

Total Current Liabilities		6,259,610			7,499,747


Deferred tax liability		69,535			101,059
Finance lease liabilities, net of current portion		1,809,424			2,879,932
Operating lease liabilities, net of current portion		3,181,843			3,527,082
Notes payable, net		4,984,642			4,688,011

Total Long-term Liabilities		10,045,444			11,196,084

Total Liabilities		16,305,054			18,695,831


Stockholders' Equity:
Preferred stock; par value $0.001, 2,500,000 shares authorized, 0 shares issued and outstanding at June 30, 2024 and December 31, 2023		-			-
Common stock; par value $0.001, 50,000,000 shares authorized, 5,819,272 and 5,727,310 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively		5,819			5,727
Additional paid-in capital		99,051,263			98,796,357
Accumulated deficit		(80,422,175	)		(75,922,180	)
Accumulated other comprehensive loss		(6,360,659	)		(5,603,888	)

Total Stockholders’ Equity		12,274,248			17,276,016

Total Liabilities and Stockholders’ Equity	$	28,579,302		$	35,971,847

The accompanying notes are an integral part of these condensed consolidated financial statements.

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LIQTECH INTERNATIONAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

	For the Three Months Ended						For the Six Months Ended
	June 30,						June 30,
	2024			2023			2024			2023

Revenues	$	4,485,062		$	4,990,019		$	8,720,406		$	9,001,538
Cost of goods sold		3,767,851			3,827,491			7,732,093			7,447,668

Gross Profit		717,211			1,162,528			988,313			1,553,870

Operating Expenses:
Selling expenses		855,122			1,028,225			1,372,701			2,210,660
General and administrative expenses		1,541,316			1,377,483			3,086,047			2,436,432
Research and development expenses		407,292			359,784			662,104			702,403

Total Operating Expenses		2,803,730			2,765,492			5,120,852			5,349,495

Loss from Operations		(2,086,519	)		(1,602,964	)		(4,132,539	)		(3,795,625	)

Other Income (Expense)
Interest and other income		45,744			116,545			114,830			168,218
Interest expense		(29,290	)		(45,898	)		(101,009	)		(57,899	)
Amortization of debt discount		(150,591	)		(86,790	)		(296,631	)		(171,318	)
Gain (loss) on currency transactions		84,462			49,494			339,998			(116,784	)
Gain (loss) on disposal of property and equipment		10,344			-			(453,233	)		-

Total Other Income (Expense)		(39,331	)		33,351			(396,045	)		(177,783	)

Loss Before Income Taxes		(2,125,850	)		(1,569,613	)		(4,528,584	)		(3,973,408	)

Income tax benefit		14,150			14,321			28,589			28,613

Net Loss	$	(2,111,700	)	$	(1,555,292	)	$	(4,499,995	)	$	(3,944,795	)


Loss Per Common Share – Basic and Diluted	$	(0.36	)	$	(0.27	)	$	(0.77	)	$	(0.70	)

Weighted-Average Common Shares Outstanding – Basic and Diluted		5,808,127			5,660,007			5,806,480			5,656,809

The accompanying notes are an integral part of these condensed consolidated financial statements.

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LIQTECH INTERNATIONAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF

COMPREHENSIVE LOSS (UNAUDITED)

	For the Three Months Ended						For the Six Months Ended
	June 30,						June 30,
	2024			2023			2024			2023

Net Loss		(2,111,700	)		(1,555,292	)		(4,499,995	)		(3,944,795	)

Gain (loss) on foreign currency translation		(213,191	)		(99,792	)		(756,771	)		308,804

Total Comprehensive Loss	$	(2,324,891	)	$	(1,655,084	)	$	(5,256,766	)	$	(3,635,991	)

The accompanying notes are an integral part of these condensed consolidated financial statements.

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LIQTECH INTERNATIONAL, INC.

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY (UNAUDITED)

							Additional			Accumu-			Accumulated Other			Total
	Common Stock						Paid-in			lated			Comprehensive			Stockholders’
	Shares			Amount			Capital			Deficit			Income (Loss)			Equity
Balance at December 31, 2023		5,727,310			5,727			98,796,357			(75,922,180	)		(5,603,888	)		17,276,016

Common stock issued in settlement of RSUs		110,028			110			(110	)		-			-			-

Tax withholdings paid related to stock-based compensation		(29,998	)		(30	)		30			-			-			-

Stock-based compensation		-			-			193,321			-			-			193,321

Loss on foreign currency translation		-			-			-			-			(543,580	)		(543,580	)

Net loss		-			-			-			(2,388,295	)		-			(2,388,295	)

Balance at March 31, 2024		5,807,340			5,807			98,989,598			(78,310,475	)		(6,147,468	)		14,537,462

Common stock issued in settlement of RSUs		11,932			12			(12	)		-			-			-

Tax withholdings paid related to stock-based compensation		-			-			(104,940	)		-			-			(104,940	)

Stock-based compensation		-			-			166,617			-			-			166,617

Loss on foreign currency translation		-			-			-			-			(213,191	)		(213,191	)

Net loss		-			-			-			(2,111,700	)		-			(2,111,700	)

Balance at June 30, 2024		5,819,272			5,819			99,051,263			(80,422,175	)		(6,360,659	)		12,274,248

The accompanying notes are an integral part of these condensed consolidated financial statements.

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LIQTECH INTERNATIONAL, INC.

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY (UNAUDITED)

					Additional			Accumu-			Accumulated Other			Total
	Common Stock				Paid-in			lated			Comprehensive			Stockholders’
	Shares		Amount		Capital			Deficit			Income (Loss)			Equity
Balance at December 31, 2022		5,498,260		5,498		96,975,476			(67,351,035	)		(6,320,567	)		23,309,372

Common Stock issued in settlement of RSUs		160,670		161		(161	)		-			-			-

Stock-based compensation		-		-		157,173			-			-			157,173

Gain on foreign currency translation		-		-		-			-			408,596			408,596

Net loss		-		-		-			(2,389,503	)		-			(2,389,503	)

Balance at March 31, 2023		5,658,930		5,659		97,132,488			(69,740,538	)		(5,911,971	)		21,485,638

Common Stock issued in settlement of RSUs		24,500		24		(24	)		-			-			-

Fractional shares from individual shareholder round-up following reverse split		16,796		17		(17	)		-			-			-
															-
Stock-based compensation		-		-		193,924			-			-			193,924

Loss on foreign currency translation		-		-		-			-			(99,792	)		(99,792	)

Net loss		-		-		-			(1,555,292	)		-			(1,555,292	)

Balance at June 30, 2023		5,700,226		5,700		97,326,371			(71,295,830	)		(6,011,763	)		20,024,478

The accompanying notes are an integral part of these condensed consolidated financial statements.

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LIQTECH INTERNATIONAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

	For the Six Months Ended
	June 30,
	2024			2023
Cash Flows from Operating Activities:
Net loss	$	(4,499,995	)	$	(3,944,795	)
Adjustments to reconcile net loss to net cash used in operations:
Depreciation and amortization		1,067,312			1,250,299
Amortization of discount on notes payable		296,631			171,318
Stock-based compensation		359,938			351,097
Amortization of right-of-use assets		271,926			279,983
Deferred taxes		(28,589	)		(28,613	)
Gain on disposal of property and equipment		453,233			-
Changes in assets and liabilities:
Accounts receivable		268,143			(606,781	)
Inventories		(525,240	)		(289,557	)
Contract assets		(79,639	)		(113,442	)
Prepaid expenses and other current assets		(227,077	)		(1,061,699	)
Accounts payable		(562,014	)		548,581
Accrued expenses		(263,144	)		(135,214	)
Operating lease liabilities		(273,833	)		(279,983	)
Contract liabilities		(37,331	)		60,584
Assets held for sale		-			41,534

Net Cash used in Operating Activities		(3,779,679	)		(3,756,688	)

Cash Flows from Investing Activities:
Purchases of property and equipment		(612,090	)		(290,468	)
Proceeds from the disposal of property and equipment		945,261			-

Net Cash provided by (used in) Investing Activities		333,171			(290,468	)

Cash Flows from Financing Activities:
Repayments of finance lease liabilities		(1,115,153	)		(200,095	)

Net Cash used in Financing Activities		(1,115,153	)		(200,095	)

Effect of Foreign Currency exchange on cash		(370,744	)		244,569

Net Change in Cash and Restricted Cash		(4,932,405	)		(4,002,682	)

Cash and Restricted Cash at Beginning of Period		10,422,181			16,597,371

Cash and Restricted Cash at End of Period	$	5,489,776		$	12,594,689

The accompanying notes are an integral part of these condensed consolidated financial statements.

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LIQTECH INTERNATIONAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

	For the Six Months Ended June 30,
	2024		2023
Supplemental Disclosures of Cash Flow Information:
Cash paid for interest	$	97,769	$	81,192
Cash paid for income taxes		-		-

Non-cash financing activities
Financed purchases of property and equipment	$	83,378	$	-

The accompanying notes are an integral part of these condensed consolidated financial statements.

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LIQTECH INTERNATIONAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

NOTE 1 – BASIS OF PRESENTATION AND OTHER INFORMATION

The accompanying unaudited condensed consolidated financial statements of LiqTech International, Inc. (the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q of Regulation S-X. They do not include all the information and footnotes required by GAAP for complete financial statements. The December 31, 2023 consolidated balance sheet data were derived from audited financial statements but does not include all disclosures required by GAAP. However, except as disclosed herein, there has been no material change in the information disclosed in the notes to the consolidated financial statements for the year ended December 31, 2023 included in the Company’s Annual Report on Form 10-K, as filed with the Securities and Exchange Commission on March 22, 2024. The interim unaudited condensed consolidated financial statements should be read in conjunction with those consolidated financial statements included in the Company’s Annual Report on Form 10-K. In the opinion of management, all adjustments considered necessary for a fair presentation of the financial statements, consisting solely of normal recurring adjustments, have been made. Operating results for the three and six months ended June 30, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024.

Recently Issued Accounting Pronouncements

In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures,” which requires a public entity to disclose significant segment expenses and other segment items on an annual and interim basis and to provide in interim periods all disclosures about reportable segment’s profit or loss and assets that are currently required annually. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. These amendments are to be applied retrospectively. The Company is currently evaluating the impact this standard will have on its condensed consolidated financial statements.

In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” which enhances the transparency and decision usefulness of income tax disclosures by requiring; (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. It also includes certain other amendments to improve the effectiveness of income tax disclosures. ASU 2023-09 is effective for fiscal years beginning after December 15, 2025, with early adoption permitted. These amendments are to be applied prospectively, with retrospective application permitted. The Company is currently evaluating the impact this standard will have on its condensed consolidated financial statements.

The Company currently believes there are no other issued and not yet effective accounting standards that are materially relevant to its condensed consolidated financial statements.

NOTE 2 – LIQUIDITY AND GOING CONCERN ASSESSMENT

Management assesses liquidity and going concern uncertainty in the Company’s consolidated financial statements to determine whether there is sufficient cash on hand and working capital, including available borrowings on loans, to operate for a period of at least one year from the date the financial statements are issued, which is referred to as the “look-forward period,” as defined by GAAP. As part of this assessment, based on conditions that are known and reasonably knowable to management, management considered various scenarios, forecasts, projections, estimates and made certain key assumptions, including the timing and nature of projected cash expenditures or programs, its ability to delay or curtail expenditures or programs, and its ability to raise additional capital, if necessary, among other factors. Based on this assessment, management made certain assumptions around implementing curtailments or delays in the nature and timing of programs and expenditures to the extent it deems probable those implementations can be achieved and management has the proper authority to execute them within the look-forward period.

As of June 30, 2024, the Company had cash and cash equivalents of $5,489,776, net working capital of $10,922,792, an accumulated deficit of $80,422,175, and total assets and liabilities of $28,579,302 and $16,305,054, respectively.

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 year from the issuance of these financial statements. There is no assurance that the Company will be successful in executing the planned revenue growth, cost reductions, strategy, and profitability improvement measures, thus achieving profitable operations. We continue to analyze various alternatives, including potentially obtaining debt or equity financings or other arrangements. Our future success depends on our ability to accelerate growth, restore profitability, and raise capital as needed.

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The accompanying condensed consolidated financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The accompanying consolidated financial statements do not include any adjustments relating to the recoverability and classification of assets and their carrying amounts, or the amounts and classification of liabilities that may result should the Company be unable to continue as a going concern. 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 have rights, preferences, or privileges senior to those of our common stock, and our current shareholders may experience dilution. If we are unable to obtain funds when needed or on acceptable terms, we may be required to curtail our current development programs, reduce operating costs, forego future development and other opportunities, or even terminate our operations.

NOTE 3 – DISAGGREGATION OF REVENUES AND SEGMENT REPORTING

The Company operates in three reportable segments: Water, Ceramics and Plastics.

The Company sells products throughout the world, and sales by geographical region are as follows for the three and six months ended June 30, 2024 and 2023:

	For the Three Months				For the Six Months
	Ended June 30,				Ended June 30,
	2024		2023		2024		2023
Americas	$	329,711	$	441,186	$	1,526,908	$	774,717
Asia-Pacific		92,535		650,095		435,496		1,101,989
Europe		3,285,925		3,119,496		5,936,840		6,219,282
Middle East & Africa		776,891		779,242		821,162		905,550
Total consolidated Revenue	$	4,485,062	$	4,990,019	$	8,720,406	$	9,001,538

The Company’s sales by segment are as follows for the three and six months ended June 30, 2024 and 2023:

	For the Three Months				For the Six Months
	Ended June 30,				Ended June 30,
	2024		2023		2024		2023
Water	$	1,870,625	$	2,070,298	$	3,419,291	$	3,505,217
Ceramics		1,665,138		1,789,465		3,471,474		3,198,837
Plastics		949,299		1,127,455		1,829,641		2,294,683
Corporate		-		2,801		-		2,801
Total consolidated Revenue	$	4,485,062	$	4,990,019	$	8,720,406	$	9,001,538

The Company’s income and total assets segment are as follows:

	For the Three Months						For the Six Months Ended
	Ended June 30,						June 30,
	2024			2023			2024			2023
Income (Loss)
Water	$	(254,251	)	$	2,439		$	(688,739	)	$	(461,036	)
Ceramics		(340,160	)		(439,090	)		(1,318,834	)		(1,000,774	)
Plastics		(240,414	)		(67,272	)		(240,413	)		(133,333	)
Corporate		(1,276,875	)		(1,051,369	)		(1,978,241	)		(2,349,652	)
Total consolidated Loss		(2,111,700	)		(1,555,292	)		(4,499,995	)		(3,944,795	)

	As of
Total Assets	June 30, 2024		December 31, 2023
Water	$	8,702,209	$	9,432,991
Ceramics		13,060,929		14,550,872
Plastics		723,729		759,745
Corporate		6,092,435		11,228,239
Total consolidated Assets	$	28,579,302	$	35,971,847

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NOTE 4 – ACCOUNTS RECEIVABLE

Accounts receivable consisted of the following on June 30, 2024, and December 31, 2023:

	June 30, 2024			December 31, 2023
Trade accounts receivable	$	3,016,377		$	3,305,959
Allowance for doubtful accounts		(211,752	)		(134,912	)
Total accounts receivable, net	$	2,804,625		$	3,171,047

The roll-forward of the allowance for doubtful accounts for the periods ended June 30, 2024 and December 31, 2023 is as follows:

	June 30, 2024			December 31, 2023
Allowance for doubtful accounts at the beginning of the period	$	134,912		$	59,559
Bad debt expense		81,940			82,066
Receivables written off during the periods		-			(10,298	)
Effect of currency translation		(5,100	)		3,585
Allowance for doubtful accounts at the end of the period	$	211,752		$	134,912

NOTE 5 – INVENTORIES

Inventories consisted of the following on June 30, 2024, and December 31, 2023:

	June 30, 2024			December 31, 2023
Furnace parts and supplies	$	45,789		$	55,177
Raw materials		3,329,036			3,301,526
Work in process		1,647,283			1,271,458
Finished goods and filtration systems		1,627,439			1,507,113
Reserve for obsolescence		(939,300	)		(867,458	)
Total inventories, net	$	5,620,247		$	5,267,816

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 6 – CONTRACT ASSETS AND CONTRACT LIABILITIES

The roll-forward of Contract assets and contract liabilities for the periods ended June 30, 2024 and December 31, 2023 is as follows:

	June 30, 2024			December 31, 2023
Cost incurred	$	3,028,377		$	3,225,728
Unbilled project deliveries		730,026			582,557
VAT		136,491			329,980
Other receivables		78,803			92,619
Prepayments		(1,407,098	)		(1,688,427	)
Deferred Revenue		(21,531	)		(33,360	)
	$	2,545,068		$	2,509,097

Distributed as follows:
Contract assets	$	2,878,573		$	2,891,744
Contract liabilities		(333,505	)		(382,647	)
	$	2,545,068		$	2,509,097

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NOTE 7 – LEASES

The Company leases certain vehicles, real property, production equipment and office equipment under lease agreements. The Company evaluates each lease to determine its appropriate classification as an operating lease or finance lease for financial reporting purposes. The majority of our operating leases are non-cancelable leases for production and office space in Hobro, Aarhus, and Copenhagen, Denmark.

During the six months ended June 30, 2024, cash paid for amounts included for the measurement of finance lease liabilities was $1,186,746, and the Company recorded finance lease expenses in other income (expenses) of $91,937.

During the six months ended June 30, 2024, cash paid for amounts included for the measurement of operating lease liabilities was $400,432, and the Company recorded operating lease expense of $398,544.

Supplemental balance sheet information related to leases as of June 30, 2024 and December 31, 2023 was as follows:

	June 30, 2024			December 31, 2023
Operating leases:
Operating lease right-of-use assets	$	3,657,512		$	4,055,837

Operating lease liabilities – current	$	476,298		$	531,355
Operating lease liabilities – long-term		3,181,843			3,527,082
Total operating lease liabilities	$	3,658,141		$	4,058,437

Finance leases:
Property and equipment, at cost	$	3,967,874		$	5,443,287
Accumulated depreciation		(1,016,026	)		(877,578	)
Property and equipment, net	$	2,951,848		$	4,565,709

Finance lease liabilities – current	$	446,425		$	590,550
Finance lease liabilities – long-term		1,809,424			2,879,932
Total finance lease liabilities	$	2,255,849		$	3,470,482

Weighted average remaining lease term:
Operating leases		7.8			8.3
Finance leases		3.6			4.3

Weighted average discount rate:
Operating leases		6.7	%		6.7	%
Finance leases		5.5	%		6.0	%

Maturities of lease liabilities at June 30, 2024 were as follows:

	Operating Leases			Finance Leases
2024 (remaining 6 months)	$	361,787		$	291,681
2025		680,530			579,039
2026		670,110			543,792
2027		670,110			1,051,729
2028		548,356			74,670
Thereafter		1,752,882			125,869
Total payment under lease agreements		4,683,775			2,666,780
Less imputed interest		(1,025,634	)		(410,931	)
Total lease liabilities	$	3,658,141		$	2,255,849

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NOTE 8 – LONG-TERM DEBT

The components of notes payable are as follows:

	June 30, 2024			December 31, 2023
Senior Promissory Notes	$	6,000,000			6,000,000
Less: unamortized debt discount		(1,015,358	)		(1,311,989	)
Senior Promissory Notes payable	$	4,984,642		$	4,688,011

Current portion of Senior Promissory Notes payable		-			-
Senior Promissory Notes payable, less current portion		4,984,642			4,688,011
Senior Promissory Notes payable	$	4,984,642		$	4,688,011

For the three months ended June 30, 2024 and 2023, the Company recognized interest expense of $0 and $0, respectively, and $150,591 and $86,790, respectively, on the Senior Promissory Notes related to the amortization of debt issuance costs.

For the six months ended June 30, 2024 and 2023, the Company recognized interest expense of $0 and $0, respectively, and $296,631 and $171,318, respectively, on the Senior Promissory Notes related to the amortization of debt issuance costs.

NOTE 9 – AGREEMENTS AND COMMITMENTS

Contingencies – From time to time, we may be involved in litigation relating to claims arising out of our operations in the normal course of business.

Product Warranties – The Company provides a standard warranty for its systems, generally for a period of one to three years after customer acceptance. The Company estimates the costs that may be incurred under its standard warranty programs and records a liability for such costs at the time product revenue is recognized.

In addition, the Company sells an extended warranty for certain systems, which generally provides a warranty for up to four years from the date of commissioning. The specific terms and conditions of the warranties vary depending upon the product sold and the country in which the installation occurred. Revenue received for the sale of extended warranty contracts is deferred and recognized in the same manner as the costs incurred to perform under the warranty contracts.

The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. Factors that affect the warranty liability include the number of units sold, historical and anticipated rates of warranty claims and the cost per claim.

Changes in the Company’s current and long-term warranty obligations included in accrued expenses on the balance sheet, as of June 30, 2024 and December 31, 2023, were as follows:

	June 30, 2024			December 31, 2023
Balance at January 1	$	629,100		$	898,072
Warranty costs charged to cost of goods sold		85,835			115,401
Utilization charges against reserve		(13,946	)		(408,234	)
Foreign currency effect		(20,727	)		23,861
Balance at the end of the period	$	680,262		$	629,100

NOTE 10 – STOCKHOLDERS’ EQUITY

Common Stock – The Company has 50,000,000 authorized shares of common stock, $0.001 par value. As of June 30, 2024 and December 31, 2023, there were 5,819,272 and 5,727,310 shares of common stock issued and outstanding, respectively.

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Stock Issuances

During the six months ended June 30, 2024, the Company has made the following issuances of common stock:

On January 3, 2024, the Company issued 24,500 shares of Common Stock to settle RSUs. The RSUs were valued at $73,500 for services provided by the Board of Directors in 2023. The Company recognized the stock-based compensation of the award over the requisite service period during the year ended December 31, 2023.

On January 3, 2024, the Company issued 85,528 shares of Common Stock to settle RSUs. The RSUs were valued at $289,672 for services provided by management in 2023. The Company recognized the stock-based compensation of the award over the requisite service period during the year ended December 31, 2023. In connection with the issuance, 29,998 shares of Common Stock, with a total value of $104,940, were retired to settle tax withholdings associated with stock-based compensation.

On June 24, 2024, the Company issued 11,932 shares of Common Stock to settle RSUs. The RSUs were valued at $36,750 for services provided by the Board of Directors from 2023 to 2024. The Company recognized the stock-based compensation of the award over the requisite service period from 2023 to 2024.

Warrants

The following is a summary of the periodic changes in warrants outstanding for the six months ended June 30, 2024 and 2023:

	2024		2023
Outstanding, December 31		5,021,354		4,490,104
Warrants issued in connection with public offering and private placement		-		-
Exercises and conversions		-		-
Outstanding, June 30		5,021,354		4,490,104

Stock-based Compensation

In 2013, the Company’s Board of Directors adopted a Share Incentive Plan (the “Incentive Plan”). Under the terms and conditions of the Incentive Plan, the Board of Directors is empowered to grant RSUs to officers, directors, and consultants of the Company. At June 30, 2024, 52,082 RSUs were granted and outstanding under the Incentive Plan. Directors of the Company receive share compensation consisting of annual grants of $36,750 ($73,500 for the Chairman of the Board) in RSUs per annum with one-year vesting.

In 2022, the Company’s Board of Directors adopted an Equity Incentive Plan (the “2022 Incentive Plan”). Under the terms and conditions of the 2022 Incentive Plan, the Board of Directors is empowered to grant RSUs to officers and directors of the Company. At June 30, 2024, 353,471 RSUs were granted and outstanding under the 2022 Incentive Plan.

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 $166,617 and $193,924 for the three-month periods ended June 30, 2024 and 2023, respectively. For the six months periods ended June 30, 2024, and 2023, respectively, the stock-based compensation related to share grants was $359,938 and $351,097. On June 30, 2024, the Company had $978,358 of unrecognized compensation cost related to non-vested stock grants.

A summary of the status of the RSUs as of June 30, 2024 and changes during the period are presented below:

	June 30, 2024
	Number of units			Weighted Average Grant-Date Fair value			Aggregated Intrinsic Value

Outstanding, December 31, 2023		314,461		$	3.46		$	-
Granted		311,154			3.20			-
Vested and settled with share issuance		(121,960	)		(3.28	)		-
Forfeited		(98,102	)		(3.54	)		-
Outstanding, June 30, 2024		405,553		$	3.30		$	-

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NOTE 11 – LOSS PER SHARE

Basic and diluted net income (loss) per common share is determined by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. For the periods where there is a net loss, stock options, warrants and RSUs have been excluded from the calculation of diluted net loss per common share because their effect would be anti-dilutive. Consequently, the weighted average number of shares of Common Stock used to calculate both basic and diluted net loss per common share is the same for the reported periods.

As of June 30, 2024, the Company had 405,553 RSUs, 3,930,008 prefunded warrants, and 1,091,346 warrants, all exercisable for shares of Common Stock.

As of June 30, 2023, the Company had 341,545 RSUs, 3,930,008 prefunded warrants, and 560,096 warrants, all exercisable for shares of Common Stock.

NOTE 12 – SIGNIFICANT CUSTOMERS AND CONCENTRATIONS

The following table presents customers accounting for 10% or more of the Company’s revenue:

	For the Three Months						For the Six Months
	Ended June 30,						Ended June 30,
	2024			2023			2024			2023
Customer A		16	%		*	%		*	%		*	%
Customer B		10	%		*	%		*	%		*	%
Customer C		*	%		13	%		*	%		*	%
Customer D		*	%		*	%		11	%		*	%

* Zero or less than 10%

The following table presents customers accounting for 10% or more of the Company’s Accounts receivable:

	June 30, 2024			December 31, 2023
Customer D		20	%		22	%
Customer B		13	%		*	%
Customer E		*	%		13	%

* Zero or less than 10%

As of June 30, 2024, approximately 97% of the Company’s assets were located in Denmark, 1% were located in the U.S., and 2% were located in China. As of December 31, 2023, approximately 98% of the Company’s assets were located in Denmark, 0% were located in the U.S., and 2% were located in China.

NOTE 13 – SUBSEQUENT EVENTS

None

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion should be read in conjunction with our unaudited condensed consolidated financial statements and the related notes included elsewhere in this quarterly report. In addition, the following discussion should be read in conjunction with our annual report on Form 10-K filed with the U.S. Securities and Exchange Commission on March 22, 2024 and our Amendment No. 1 to our annual report on Form 10-K filed with the U.S. Securities and Exchange Commission on April 30, 2024, and the financial statements and notes thereto. We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.

Overview

LiqTech International, Inc. is a clean technology company that provides state-of-the-art gas and liquid purification products by manufacturing ceramic silicon carbide filters and membranes as well as developing industry-leading and fully automated filtration solutions and systems. For more than two decades, we have developed and manufactured products of re-crystallized silicon carbide. We specialize in three business areas: ceramic membranes for liquid filtration systems, ceramic diesel particulate filters (DPFs) to control soot exhaust particles and black carbon emission from diesel engines, and plastic components for usage across various industries. Using nanotechnology, we develop proprietary products using patented silicon carbide technology. Our products are based on unique silicon carbide membranes that facilitate new applications and improve existing technologies. We market our products from our offices in Denmark and through local representatives and distributors. The products are shipped directly to customers from our production facilities in Denmark.

The terms “LiqTech”, “we”, “our”, “us”, the “Company” or any derivative thereof, as used herein, refer to LiqTech International, Inc., a Nevada corporation, together with its direct and indirect wholly owned subsidiaries, which we collectively refer to herein as our “Subsidiaries”.

At present, we conduct our operations in the Kingdom of Denmark, with locations in the Copenhagen area, Hobro, and Aarhus. However, in July 2024, we consolidated our operations into the Copenhagen area and Hobro.

Our Strategy

Our strategy is to leverage our core competencies in material science, advanced filtration, and systems integration, creating differentiated products with compelling value propositions to penetrate attractive end markets with regulatory and ESG tailwinds. Essential imperatives associated with our strategy include the following:

	●	Develop and reinforce new products and applications to provide clean water and reduce pollution. We currently provide water filtration systems for commercial pool owners, scrubber technology providers, shipowners, and ship operators as well as tailored filtration systems for oil & gas operators and services companies. We are expanding our range of products to better leverage existing customer relationships and develop new relationships within the oil & gas, marine, chemical, and other industries.

	●	Better penetrate existing end markets where our value proposition is strong. We have successfully sold products and installed systems into several end market segments--including automotive/transportation, clean water and pool filtration, marine, industrial wastewater, chemicals/petrochemicals, and oil & gas applications. We are focused on targeting and developing new customers in these end markets while working with distributors, agents, and partners to access other important geographic markets.

	●	Develop new end markets for our core products and applications. Our existing products and systems are relevant for and valuable to other end markets, and we regularly evaluate opportunities to develop strategic partners to perfect new applications and validate associated value propositions.

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Results of Operations

The financial information below is derived from our unaudited condensed consolidated financial statements included elsewhere in this report.

Comparison of the Three Months Ended June 30, 2024 and June 30, 2023

The following table sets forth our revenues, expenses and net loss for the three months ended June 30, 2024 and 2023:

	Three Months Ended June 30,
													Period to Period Change
	2024			As a % of Sales			2023			As a % of Sales			Variance			Percent %
Revenue	$	4,485,062			100.0	%	$	4,990,019			100.0	%	$	(504,957	)		(10.1	)%
Cost of goods sold		3,767,851			84.0			3,827,491			76.7			(59,640	)		(1.6	)
Gross Profit		717,211			16.0			1,162,528			23.3			(445,317	)		(38.3	)

Operating Expenses
Selling expenses		855,122			19.1			1,028,225			20.6			(173,103	)		(16.8	)
General and administrative expenses		1,541,316			34.4			1,377,483			27.6			163,833			11.9
Research and development expenses		407,292			9.1			359,784			7.2			47,508			13.2
Total Operating Expenses		2,803,730			62.5			2,765,492			55.4			38,238			1.4

Loss from Operation		(2,086,519	)		(46.5	)		(1,602,964	)		(32.1	)		(483,555	)		30.2

Other Income (Expense)
Interest and other income		45,744			1.0			116,545			2.3			(70,801	)		(60.7	)
Interest expense		(29,290	)		(0.7	)		(45,898	)		(0.9	)		16,608			(36.2	)
Amortization of debt discount		(150,591	)		(3.4	)		(86,790	)		(1.7	)		(63,801	)		73.5
Gain on currency transactions		84,462			1.9			49,494			1.0			34,968			70.7
Gain on disposal of property and equipment		10,344			0.2			-			-			10,344			-
Total Other Income (Expense)		(39,331	)		(0.9	)		33,351			0.7			(72,682	)		(217.9	)

Loss Before Income Taxes		(2,125,850	)		(47.4	)		(1,569,613	)		(31.5	)		(556,237	)		35.4
Income tax benefit		14,150			(0.3	)		14,321			(0.3	)		(171	)		(1.2	)

Net Loss	$	(2,111,700	)		(47.1	)%	$	(1,555,292	)		(31.2	)%	$	(556,408	)		35.8	%

Revenues

Revenue for the three months ended June 30, 2024 was $4,485,062 compared to $4,990,019 for the same period in 2023, representing a decrease of $504,957 or 10.1%. The unfavorable change was attributable to a decrease in deliveries of plastics products, ceramic membranes, liquid filtration systems, and aftermarket sales, partly offset by increased sales of DPFs. The decline in sales of plastic products is primarily due to a large one-time sale recorded in 2023, which did not recur in the current period. The decrease in deliveries of liquid filtration systems and aftermarket sales was primarily attributed to a reduction in aftermarket sales due to elevated remediation work and associated deliveries in the same period in 2023. The increase in sales of DPFs was primarily due to the effective execution of strategies designed to capitalize on the increased demand for DPFs.

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Gross Profit

Gross profit for the three months ended June 30, 2024 was $717,211 (or a gross profit margin of 16%) compared to gross profit of $1,162,528 (or a gross profit margin of 23.3%) for the same period in 2023, representing a decrease of $445,317, or 38.3%. This decline in gross profit can be attributed to the decrease in revenue and an unfavorable revenue mix, which resulted in a lower proportion of high-margin products being sold. Specifically, the delivery of a containerized oil & gas pilot system to the Middle East contributed to lower-than-usual gross profit margin, reflecting a strategic decision aimed at demonstrating and validating the efficiency of our technology. The decline in gross profit was partly offset by decreased depreciation as well as continued initiatives aimed at optimizing manufacturing processes, which have improved profitability within DPF and ceramic membrane production. Included in the gross profit was depreciation of $441,936 and $636,985 for the three months ended June 30, 2024, and 2023, respectively.

Expenses

Total operating expenses for the three months ended June 30, 2024 were $2,803,730, representing an increase of $38,238, or 1%, compared to $2,765,492 for the same period in 2023.

Selling expenses for the three months ended June 30, 2024 were $855,122 compared to $1,028,225 for the same period in 2023, representing a decrease of $173,103, or 16.8%. The decrease in selling expenses is attributable to the resignations of our CFO and VP of Sales, as well as reductions in travel costs, marketing expenses, and expenses related to external sales consultancy services.

General and administrative expenses for the three months ended June 30, 2024 were $1,541,316 compared to $1,377,483 for the same period in 2023, representing an increase of $163,833, or 11.9%. The increase was attributable to newly created positions in supply chain and project management, as well as increased legal expenses, insurance costs, and recruitment costs associated with the resignations of our CFO and VP of Sales. Included in general and administrative expenses were non-cash compensation of $166,617 and $193,924 for the three months ended June 30, 2024 and 2023, respectively.

Research and development expenses for the three months ended June 30, 2024 were $407,292 compared to $359,784 for the same period in 2023, representing an increase of $47,508, or 13.2%. The increase is solely attributable to one-time exit costs of a loss-making external development project, partly offset by more focused R&D efforts with fewer ongoing projects combined with a decrease in the average number of employees engaged in research and development activity as the Company streamlined and centralized the R&D function.

Other Income (Expenses)

Other expenses for the three months ended June 30, 2024 were $39,331 compared to other income of $33,351 for the comparable period in 2023, representing a decrease of $72,682, or 217.9%. The decrease was attributable to reduced interest income as well as increased debt discount amortization due to the extension of the maturity date for the senior promissory notes, with additional warrants issued as consideration for the extension. The decrease in other expenses was offset by reduced interest expenses and gain on currency transactions due to the EUR/DKK decline against the USD during the period.

Net Loss

As a result of the cumulative effect of the factors described above, we had a net loss for the three months ended June 30, 2024 of $2,111,700 compared to $1,555,292 for the comparable period in 2023, representing an increase in net loss of $556,408, or 35.8%.

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Comparison of the Six Months Ended June 30, 2024 and June 30, 2023

The following table sets forth our revenues, expenses and net loss for the six months ended June 30, 2024 and 2023:

	Six Months Ended June 30,
													Period to Period Change
	2024			As a % of Sales			2023			As a % of Sales			Variance			Percent %
Revenue	$	8,720,406			100.0	%	$	9,001,538			100.0	%	$	(281,132	)		(3.1	)%
Cost of goods sold		7,732,093			88.7			7,447,668			82.7			284,425			3.8
Gross Profit		988,313			11.3			1,553,870			17.3			(565,557	)		(36.4	)

Operating Expenses
Selling expenses		1,372,701			15.7			2,210,660			24.6			(837,959	)		(37.9	)
General and administrative expenses		3,086,047			35.4			2,436,432			27.1			649,615			26.7
Research and development expenses		662,104			7.6			702,403			7.8			(40,299	)		(5.7	)
Total Operating Expenses		5,120,852			58.7			5,349,495			59.4			(228,643	)		(4.3	)

Loss from Operation		(4,132,539	)		(47.4	)		(3,795,625	)		(42.2	)		(336,914	)		8.9

Other Income (Expense)
Interest and other income		114,830			1.3			168,218			1.9			(53,388	)		(31.7	)
Interest expense		(101,009	)		(1.2	)		(57,899	)		(0.6	)		(43,110	)		74.5
Amortization of debt discount		(296,631	)		(3.4	)		(171,318	)		(1.9	)		(125,313	)		73.1
Gain (loss) on currency transactions		339.998			3.9			(116,784	)		(1.3	)		456,782			(391.1	)
Loss on disposal of property and equipment		(453,233	)		(5.2	)		-			-			(453.233	)		-
Total Other Income (Expense)		(396,045	)		(4.5	)		(177,783	)		(2.0	)		(218,262	)		122.8

Loss Before Income Taxes		(4,528,584	)		(51.9	)		(3,973,408	)		(44.1	)		(555,176	)		14.0
Income Tax Benefit		28,589			(0.3	)		28,613			(0.3	)		(24	)		(0.1	)

Net Loss	$	(4,499,995	)		(51.6	)%	$	(3,944,795	)		(43.8	)%	$	(555,200	)		14.1	%

Revenue

Revenue for the six months ended June 30, 2024 was $8,720,406 compared to $9,001,538 for the same period in 2023, representing a decrease of $281,132, or 3.1%. The decline was mainly due to a reduction in deliveries of plastics products, liquid filtration systems, ceramic membranes and aftermarket sales, partly offset by increased sales of DPFs.

The decline in sales of plastic products is primarily due to a large one-time sale recorded in 2023, which did not recur in the current period. The decrease in deliveries of liquid filtration systems and aftermarket sales was primarily attributed to a reduction in aftermarket sales due to remediation work executed in the same period in 2023. The increase in sales of DPFs was primarily due to the effective execution of strategies designed to capitalize on the increased demand for DPFs.

Gross Profit

Gross profit for the six months ended June 30, 2024 was $988,313 (or gross profit margin of 11.3%) compared to gross profit of $1,553,870 (or a gross profit margin of 17.3%) for the same period in 2023, representing a decrease of $565,557, or 36.4%. This decline in gross profit can be attributed to the decrease in revenue and an unfavorable revenue mix, which resulted in a lower proportion of high-margin products being sold. Specifically, the delivery of a containerized oil and gas pilot system to the Middle East contributed to lower-than-usual margins, reflecting a strategic decision aimed at demonstrating and validating the efficiency of our technology. The decline in gross profit was partly offset by decreased depreciation as well as continued initiatives aimed at optimizing manufacturing processes, which have improved profitability within DPF and ceramic membrane production. Included in the gross profit was depreciation of $893,580 and $1,251,577 for the six months ended June 30, 2024 and 2023, respectively.

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Expenses

Total operating expenses for the six months ended June 30, 2024 were $5,120,852, representing a decrease of $228,643, or 4.3%, compared to $5,349,495 for the same period in 2023.

Selling expenses for the six months ended June 30, 2024, were $1,372,701, compared to $2,210,660 for the same period in 2023, representing a decrease of $837,959, or 37.9%. The decrease in selling expenses is attributable to the resignations of our CFO and VP of Sales, as well as reductions in bonus payouts, travel costs, marketing expenses, and expenses related to external sales consultancy services.

General and administrative expenses for the six months ended June 30, 2024, were $3,086,047, compared to $2,436,432 for the same period in 2023, representing an increase of $649,615, or 26.7%. The increase in general and administrative expenses was attributable to newly created positions in supply chain and project management, as well as increased legal expenses, insurance costs, and recruitment costs associated with the resignations of our CFO and VP of Sales. Furthermore, the increase is partly attributable to the release of bonus provisions in the comparable period of 2023. Included in general and administrative expenses was non-cash compensation amounting to $359,938 and $351,097 for the six months ended June 30, 2024, and 2023, respectively.

Research and development expenses for the six months ended June 30, 2024 were $662,104 compared to $702,403 for the same period in 2023, representing a decrease of $40,299, or 5.7%. The change is attributable to more focused R&D efforts with fewer ongoing projects combined with a decrease in the average number of employees engaged in research and development activities, as the Company streamlined and centralized the R&D function, partly offset by one-time exit costs of a loss-making external development project.

Other Income (Expenses)

Other expenses for the six months ended June 30, 2024 was $396,045 compared to $177,783 for the comparable period in 2023, representing an increase of $218,262, or 122.8%. The increase was attributable to the non-cash loss associated with the disposal of property and equipment, decreased interest income and increased debt discount amortization cost due to the extension of the maturity date for the senior promissory notes, with additional warrants issued as consideration for the extension. The decrease in other expenses was offset by a gain on currency transactions due to the EUR/DKK decline against the USD during the period.

Net Loss

As a result of the cumulative effect of the factors described above, we had a net loss for the six months ended June 30, 2024 of $4,499,995 compared to $3,944,795 for the comparable period in 2023, representing an increase in net loss of $555,200, or 14.1%.

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Liquidity and Capital Resources

The Company has historically financed operations through offerings of equity or debt instruments, internally generated cash from operations and our available lines of credit. On June 30, 2024, we had cash of $5,489,776 and net working capital of $10,922,792, and on December 31, 2023, we had cash of $10,442,181 and net working capital of $14,590,432. On June 30, 2024, our net working capital had decreased by $3,667,640 compared to December 31, 2023, mainly as a result of a reduction in cash and cash equivalents.

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 year from the issuance of these financial statements. There is no assurance that the Company will be successful in executing the planned revenue growth, cost reductions, strategy, and profitability improvement measures, thus achieving profitable operations. We continue to analyze various alternatives, including potentially obtaining debt or equity financings or other arrangements. Our future success depends on our ability to accelerate growth, restore profitability, and raise capital as needed.

Continued market uncertainty and reduced order intake caused by weakening global macroeconomic conditions or recession, could unfavorably impact the Company’s ability to generate positive cash flow and thereby significantly reduce its profitability and liquidity position.

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 have rights, preferences, or privileges senior to those of our common stock, and our current shareholders may experience dilution. If we are unable to obtain funds when needed or on acceptable terms, we may be required to curtail our current development programs, reduce operating costs, forego future development and other opportunities, or even terminate our operations.

Senior Promissory Notes

On June 22, 2022, the Company issued and sold Senior Promissory Notes in an aggregate principal amount of $6.0 million (the “Notes”) and issued warrants to purchase 531,250 shares of Common Stock to affiliates of Bleichroeder L.P., 21 April Fund, L.P., and 21 April Fund, Ltd. (together, the “Purchasers”), pursuant to a note and warrant purchase agreement entered into with the Purchasers (the “Note and Warrant Purchase Agreement”). The warrants issued in this transaction have an exercise price of $5.20 per share, a term of five years and are exercisable for cash at any time.

The Notes originally had a term of 24 months and do not bear interest during this period. If the Notes are not repaid on or before the second anniversary of issuance, however, the Notes will thereafter bear interest of 10% per annum, which will increase by 1% each month the Notes remain unpaid, up to a maximum of 16% per annum, payable monthly.

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 years and are exercisable for cash at any time.

As a result, the Company recorded an initial debt discount of $695,749, based on the relative fair value of the warrants and Notes issued. The Company determined the fair value of the warrants by using the Black-Scholes Option Pricing Model, with the following assumptions: expected term of 2.5 years, stock price of $3.44, exercise price of $5.20, volatility of 80.8%, risk-free rate of 3.13%, and no forfeiture rate. The debt discount will be accreted according to the effective interest method over the contractual term of the Notes. The warrants qualified for equity classification and were reported within Additional Paid-In Capital.

On October 13, 2023, the Company and the Purchasers entered into an amendment to the Note and Warrant Purchase Agreement (the “Amendment”) and Allonge No. 1 to each of the Notes (collectively, the “Allonges”) effective as of September 30, 2023, pursuant to which the Company and the Purchasers extended the maturity date of the Notes from June 20, 2024, to January 1, 2026 (the “Extension”). As consideration for the Extension, simultaneously with the entry into the Amendment and Allonges, the Company issued to the Purchasers additional warrants to purchase an aggregate of 531,250 shares of Common Stock at an exercise price of $5.20 per share, subject to adjustment as provided therein (the “2023 Warrants”). The 2023 Warrants are exercisable at any time prior to the five-year anniversary of the initial exercise date of September 30, 2023. The Amendment qualifies as a modification and entitles the Purchasers to registration rights with respect to the shares of Common Stock issuable upon exercise of the 2023 Warrants pursuant to the existing Registration Rights Agreement, dated June 22, 2022, by and between the Company and the Purchasers.

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 forfeiture rate. The debt discount will be accreted according to the effective interest method over the contractual term of the Notes. The warrants qualified for equity classification and were reported within Additional Paid-In Capital

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Cash Flows

Six months ended June 30, 2024 compared to six months ended June 30, 2023

Cash flows from operating activities for the period ending June 30, 2024 derived from the net loss for the period, adjusted for non-cash items and changes in assets and liabilities. Cash flows used in operating activities for the six months ended June 30, 2024 were $3,779,679, representing an unfavorable change of $22,991 compared to cash flows used in operating activities of $3,756,688 for the six months ended June 30, 2023. The cash flows used in operating activities for the period consists mainly of the net loss of $4,499,995, adjusted for depreciation and other non-cash-related items of $2,420,451, as well as a decrease in accounts payable of $562,014 and an increase in inventory of $525,240, partly offset by a decrease in accounts receivable of $268,143.

Cash flows provided by investing activities were $333,171 for the six months ended June 30, 2024 as compared to cash flows used in investing activities of $290,468 for the six months ended June 30, 2023, representing an improvement of $639,639. The investing activities include proceeds from the disposition of production equipment in Ballerup, offset by general purchases of production equipment to continue optimizing production throughput.

Cash flows used in financing activities were $1,115,153 for the six months ended June 30, 2024 compared to $200,095 for the six months ended June 30, 2023, representing an increase of $915,058. The increase was mainly driven by the repayment of lease agreements in connection with the sales of production equipment in Ballerup as mentioned above.

Off Balance Sheet Arrangements

As of June 30, 2024, we had no off-balance sheet arrangements. We are not aware of any material transactions that are not disclosed in our consolidated financial statements.

Significant Accounting Policies and Critical Accounting Estimates

The methods, estimates, and judgments that we use in applying our accounting policies have a significant impact on the results that we report in our consolidated financial statements. Some of our accounting policies require us to make difficult and subjective judgments, often as a result of the need to make estimates regarding matters that are inherently uncertain. Our most critical accounting estimates include:

●	The assessment of revenue recognition, which impacts revenue and cost of sales;
●	the assessment of allowance for product warranties, which impacts gross profit;
●	the assessment of collectability of Accounts receivable, which impacts operating expenses when and if we record bad debt or adjust the allowance for doubtful accounts;
●	the assessment of recoverability of long-lived assets, which impacts gross profit or operating expenses when and if we record asset impairments or accelerate their depreciation;
●	the recognition and measurement of current and deferred income taxes (including the measurement of uncertain tax positions), which impact our provision for taxes;
●	the valuation of inventory, which impacts gross profit; and
●	the recognition and measurement of loss contingencies, which impact gross profit or operating expenses when we recognize a loss contingency, revise the estimate for a loss contingency, or record an asset impairment.

Recently Enacted Accounting Standards

For a description of accounting changes and recent accounting standards, including the expected dates of adoption and estimated effects, if any, on our consolidated financial statements, see “Note 1: Recently Enacted Accounting Standards” in the accompanying Financial Statements.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We are not required to provide quantitative and qualitative disclosures about market risk because we are a smaller reporting company.

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ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Management, with the participation of our Chief Executive Officer and our Chief Financial Officer, evaluated the design and effectiveness of our internal controls over financial reporting and disclosure controls and procedures (pursuant to Rule 13a-15(b) and (c) under the Exchange Act) as of the end of the period covered by this Quarterly Report. A material weakness is a control deficiency, or combination of control deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a misstatement of the registrant's financial statements will not be prevented or detected on a timely basis.

There are inherent limitations to the effectiveness of any system of disclosure controls and procedures, including the possibility of human error and the circumvention or overriding of the controls and procedures. Accordingly, even effective disclosure controls and procedures can only provide reasonable assurance of achieving their control objectives.

Based upon that evaluation, our Chief Executive Officer and our Chief Financial Officer concluded that our disclosure controls and procedures as of June 30, 2024 were not effective as of the period covered by this Quarterly Report due to material weaknesses in internal controls over financial reporting. For more information on material weaknesses identified by management, please reference our Form 10-K filed on March 22, 2024 for the year ended December 31, 2023 and our Form 10-K/A filed on April 30, 2024 for the year ended December 31, 2023.

Changes in Internal Control over Financial Reporting

There was no change in our internal control over financial reporting during the period covered by this report that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Management's Remediation Initiatives

In response to the identified material weaknesses, our management, with oversight from the Company’s Audit Committee, has been and will continue to dedicate necessary resources to enhance the Company’s internal control over financial reporting and remediate the identified material weaknesses. As an example of such remediation, the Company in 2023 hired additional employees into the finance department, and the Company implemented a new ERP system along with other IT programs to help reinforce its controls and processes, and these investments are an important step in the remediation of the material weaknesses. During 2022, the Company introduced an updated Delegation of Authority, with the overall purpose to provide clarity for all employees on the extent to which they can commit the Company and at the same time provide the Company with assurance that decisions about agreements are made by the appropriate functions and employees. Lastly, the Company has started the process of redesigning and ensuring documentation of all processes and procedures related to the financial reporting process to ensure the effective design and operation of process-level controls.

While management believes that the steps that have been taken and plan to take will improve the overall system of internal control over financial reporting and will remediate the identified material weaknesses, these material weaknesses cannot be considered fully remediated until the applicable relevant controls operate for a sufficient period of time.

Limitations on the Effectiveness of Internal Controls

An internal control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the control. The design of any system of controls also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Over time, a control may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate.

While management believes that the steps that we have taken and plan to take will improve the overall system of internal control over financial reporting and will remediate identified material weaknesses, the material weaknesses cannot be considered remediated until the applicable relevant controls operate for a sufficient period of time.

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PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

From time to time, we may be involved in litigation relating to claims arising out of our operations in the normal course of business. For a description of contingencies, see “Note 7 – Agreements And Commitments”.

ITEM 1A. RISK FACTORS

Not required for a “smaller reporting company.”

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

None.

ITEM 5. OTHER INFORMATION

Insider Trading Plans

During the quarter ended June 30, 2024, no director or Section 16 officer adopted, modified, or terminated any “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement” (in each case, as defined in Item 408(a) of Regulation S-K).

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ITEM 6. EXHIBITS

3.1	Articles of Incorporation, as amended as of November 13, 2023	Incorporated by reference to Exhibit 3.1 to the Company’s Annual Report on Form 10-K as filed with the SEC on March 22, 2024

3.2	Amended and Restated Bylaws	Incorporated by reference to Exhibit 3.4 to the Company’s Quarterly Report on Form 10-Q as filed with the SEC on May 15, 2012

31.1	Certifications of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	Filed herewith

31.2	Certifications of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	Filed herewith

32.1	Certification Pursuant To 18 U.S.C. Section 1350, As Adopted Pursuant To Section 906 of the Sarbanes-Oxley Act Of 2002	Furnished herewith

32.2	Certification Pursuant To 18 U.S.C. Section 1350, As Adopted Pursuant To Section 906 of the Sarbanes-Oxley Act Of 2002	Furnished herewith

101. INS	Inline XBRL Instance Document (the Instance Document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document)	Provided herewith

101. CAL	Inline XBRL Taxonomy Extension Calculation Link base Document	Provided herewith

101. DEF	Inline XBRL Taxonomy Extension Definition Link base Document	Provided herewith

101. LAB	Inline XBRL Taxonomy Label Link base Document	Provided herewith

101. PRE	Inline XBRL Extension Presentation Link base Document	Provided herewith

101. SCH	Inline XBRL Taxonomy Extension Scheme Document	Provided herewith

104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).	Provided herewith

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SIGNATURES

In accordance with the requirements of the Securities Exchange Act of 1934, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	LiqTech International, Inc.

Dated: August 14, 2024	/s/ Fei Chen
	Fei Chen, Chief Executive Officer
	(Principal Executive Officer)


Dated: August 14, 2024	/s/ Phillip Massie Price
	Phillip Massie Price, Interim Chief Financial Officer
	(Principal Financial and Accounting Officer)

Exhibit 31.1

OFFICER’S CERTIFICATE

PURSUANT TO SECTION 302

I, Fei Chen, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the period ended June 30, 2024 of LiqTech International, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s)and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 14, 2024

By:

/s/ Fei Chen

Name:

Fei Chen

Title:

President and Chief Executive Officer and

Principal Executive Officer

Exhibit 31.2

OFFICER’S CERTIFICATE

PURSUANT TO SECTION 302

I, Phillip Massie Price, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the period ended June 30, 2024 of LiqTech International, Inc.;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 14, 2024

By:

/s/ Phillip Massie Price

Name:

Phillip Massie Price

Title:

Interim Chief Financial Officer and Principal

Financial and Accounting Officer

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of LiqTech International, Inc. (the “Company”) on Form 10-Q for the period ended June 30, 2024 as filed with the U.S. Securities and Exchange Commission on the date hereof (the “Report”), the undersigned hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to her knowledge:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operation of the Company.

Date: August 14, 2024

By:

/s/ Fei Chen

Name:

Fei Chen

Title:

President & Chief Executive Officer and Principal

Executive Officer

A signed original of this written statement required by Section 906, or other document authentications, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to the Company and will be retained by the Company and furnished to the U.S. Securities and Exchange Commission or its staff upon request.

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operation of the Company.

Date: August 14, 2024

By:

/s/ Phillip Massie Price

Name:

Phillip Massie Price

Title:

Interim Chief Financial Officer and Principal

Financial and Accounting Officer

Document And Entity Information - shares	6 Months Ended
Document And Entity Information - shares	Jun. 30, 2024	Aug. 14, 2024
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	Q2
Document Fiscal Year Focus	2024
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2024
Document Transition Report	false
Entity File Number	001-36210
Entity Incorporation, State or Country Code	NV
Entity Tax Identification Number	20-1431677
Entity Address, Address Line One	Industriparken 22C
Entity Address, Postal Zip Code	DK 2750
Entity Address, City or Town	Ballerup
Entity Address, Country	DK
City Area Code	45
Local Phone Number	3131 5941
Title of 12(b) Security	Common Stock, $0.001 par value
Trading Symbol	LIQT
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		5,819,272

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Current Assets:
Cash and restricted cash	$ 5,489,776	$ 10,422,181
Accounts receivable, net	2,804,625	3,171,047
Inventories, net	5,620,247	5,267,816
Contract assets	2,878,573	2,891,744
Prepaid expenses and other current assets	389,181	337,391
Total Current Assets	17,182,402	22,090,179
Long-Term Assets:
Property and equipment, net	6,935,852	9,007,166
Operating lease right-of-use assets	3,657,512	4,055,837
Deposits and other assets	517,123	470,349
Intangible assets, net	60,128	114,593
Goodwill	226,285	233,723
Total Long-Term Assets	11,396,900	13,881,668
Total Assets	28,579,302	35,971,847
Current Liabilities:
Accounts payable	1,813,943	2,444,653
Accrued expenses	3,189,439	3,550,542
Current portion of finance lease liabilities	446,425	590,550
Current portion of operating lease liabilities	476,298	531,355
Contract liabilities	333,505	382,647
Total Current Liabilities	6,259,610	7,499,747
Deferred tax liability	69,535	101,059
Finance lease liabilities, net of current portion	1,809,424	2,879,932
Operating lease liabilities, net of current portion	3,181,843	3,527,082
Notes payable, net	4,984,642	4,688,011
Total Long-term Liabilities	10,045,444	11,196,084
Total Liabilities	16,305,054	18,695,831
Stockholders' Equity:
Preferred stock; par value $0.001, 2,500,000 shares authorized, 0 shares issued and outstanding at June 30, 2024 and December 31, 2023	0	0
Common stock; par value $0.001, 50,000,000 shares authorized, 5,819,272 and 5,727,310 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively	5,819	5,727
Additional paid-in capital	99,051,263	98,796,357
Accumulated deficit	(80,422,175)	(75,922,180)
Accumulated other comprehensive loss	(6,360,659)	(5,603,888)
Total Stockholders’ Equity	12,274,248	17,276,016
Total Liabilities and Stockholders’ Equity	$ 28,579,302	$ 35,971,847

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares	Jun. 30, 2024	Dec. 31, 2023
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)	5,819,272	5,727,310
Common stock, outstanding (in shares)	5,819,272	5,727,310

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Revenues	$ 4,485,062	$ 4,990,019	$ 8,720,406	$ 9,001,538
Cost of goods sold	3,767,851	3,827,491	7,732,093	7,447,668
Gross Profit	717,211	1,162,528	988,313	1,553,870
Operating Expenses:
Selling expenses	855,122	1,028,225	1,372,701	2,210,660
General and administrative expenses	1,541,316	1,377,483	3,086,047	2,436,432
Research and development expenses	407,292	359,784	662,104	702,403
Total Operating Expenses	2,803,730	2,765,492	5,120,852	5,349,495
Loss from Operations	(2,086,519)	(1,602,964)	(4,132,539)	(3,795,625)
Other Income (Expense)
Interest and other income	45,744	116,545	114,830	168,218
Interest expense	(29,290)	(45,898)	(101,009)	(57,899)
Amortization of debt discount	(150,591)	(86,790)	(296,631)	(171,318)
Gain (loss) on currency transactions	84,462	49,494	339,998	(116,784)
Gain (loss) on disposal of property and equipment	10,344	0	(453,233)	0
Total Other Income (Expense)	(39,331)	33,351	(396,045)	(177,783)
Loss Before Income Taxes	(2,125,850)	(1,569,613)	(4,528,584)	(3,973,408)
Income tax benefit	14,150	14,321	28,589	28,613
Net Loss	$ (2,111,700)	$ (1,555,292)	$ (4,499,995)	$ (3,944,795)
Loss Per Common Share – Basic and Diluted (in dollars per share)	$ (0.36)	$ (0.27)	$ (0.77)	$ (0.7)
Weighted-Average Common Shares Outstanding – Basic and Diluted (in shares)	5,808,127	5,660,007	5,806,480	5,656,809

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Net loss	$ (2,111,700)	$ (1,555,292)	$ (4,499,995)	$ (3,944,795)
Loss on foreign currency translation	(213,191)	(99,792)	(756,771)	308,804
Total Comprehensive Loss	$ (2,324,891)	$ (1,655,084)	$ (5,256,766)	$ (3,635,991)

Condensed Consolidated Statement of Stockholders' Equity (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Total
BALANCE (in shares) at Dec. 31, 2022	5,498,260
BALANCE at Dec. 31, 2022	$ 5,498	$ 96,975,476	$ (67,351,035)	$ (6,320,567)	$ 23,309,372
Common stock issued in settlement of RSUs (in shares)	160,670
Common stock issued in settlement of RSUs	$ 161	(161)
Stock-based compensation		157,173			157,173
Loss on foreign currency translation	$ 0	0	0	408,596	408,596
Net loss			(2,389,503)		(2,389,503)
BALANCE (in shares) at Mar. 31, 2023	5,658,930
BALANCE at Mar. 31, 2023	$ 5,659	97,132,488	(69,740,538)	(5,911,971)	21,485,638
BALANCE (in shares) at Dec. 31, 2022	5,498,260
BALANCE at Dec. 31, 2022	$ 5,498	96,975,476	(67,351,035)	(6,320,567)	23,309,372
Loss on foreign currency translation					308,804
Net loss					(3,944,795)
BALANCE (in shares) at Jun. 30, 2023	5,700,226
BALANCE at Jun. 30, 2023	$ 5,700	97,326,371	(71,295,830)	(6,011,763)	20,024,478
BALANCE (in shares) at Mar. 31, 2023	5,658,930
BALANCE at Mar. 31, 2023	$ 5,659	97,132,488	(69,740,538)	(5,911,971)	21,485,638
Common stock issued in settlement of RSUs (in shares)	24,500
Common stock issued in settlement of RSUs	$ 24	(24)
Stock-based compensation		193,924			193,924
Loss on foreign currency translation	$ 0	0	0	(99,792)	(99,792)
Net loss			(1,555,292)		(1,555,292)
Fractional shares from individual shareholder round-up following reverse split (in shares)	16,796
Fractional shares from individual shareholder round-up following reverse split	$ 17	(17)	0	0	0
BALANCE (in shares) at Jun. 30, 2023	5,700,226
BALANCE at Jun. 30, 2023	$ 5,700	97,326,371	(71,295,830)	(6,011,763)	20,024,478
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
Common stock issued in settlement of RSUs (in shares)	110,028
Common stock issued in settlement of RSUs	$ 110	(110)
Tax withholdings paid related to stock-based compensation (in shares)	(29,998)
Tax withholdings paid related to stock-based compensation	$ (30)	30
Stock-based compensation		193,321			193,321
Loss on foreign currency translation	$ 0	0	0	(543,580)	(543,580)
Net loss			(2,388,295)		(2,388,295)
BALANCE (in shares) at Mar. 31, 2024	5,807,340
BALANCE at Mar. 31, 2024	$ 5,807	98,989,598	(78,310,475)	(6,147,468)	14,537,462
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
Loss on foreign currency translation					(756,771)
Net loss					(4,499,995)
BALANCE (in shares) at Jun. 30, 2024	5,819,272
BALANCE at Jun. 30, 2024	$ 5,819	99,051,263	(80,422,175)	(6,360,659)	12,274,248
BALANCE (in shares) at Mar. 31, 2024	5,807,340
BALANCE at Mar. 31, 2024	$ 5,807	98,989,598	(78,310,475)	(6,147,468)	14,537,462
Common stock issued in settlement of RSUs (in shares)	11,932
Common stock issued in settlement of RSUs	$ 12	(12)
Tax withholdings paid related to stock-based compensation	0	(104,940)	0	0	(104,940)
Stock-based compensation		166,617			166,617
Loss on foreign currency translation	$ 0	0	0	(213,191)	(213,191)
Net loss			(2,111,700)		(2,111,700)
BALANCE (in shares) at Jun. 30, 2024	5,819,272
BALANCE at Jun. 30, 2024	$ 5,819	$ 99,051,263	$ (80,422,175)	$ (6,360,659)	$ 12,274,248

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Cash Flows from Operating Activities:
Net loss	$ (4,499,995)	$ (3,944,795)
Adjustments to reconcile net loss to net cash used in operations:
Depreciation and amortization	1,067,312	1,250,299
Amortization of discount on notes payable	296,631	171,318
Stock-based compensation	359,938	351,097
Amortization of right-of-use assets	271,926	279,983
Deferred taxes	(28,589)	(28,613)
Gain on disposal of property and equipment	453,233	0
Changes in assets and liabilities:
Accounts receivable	268,143	(606,781)
Inventories	(525,240)	(289,557)
Contract assets	(79,639)	(113,442)
Prepaid expenses and other current assets	(227,077)	(1,061,699)
Accounts payable	(562,014)	548,581
Accrued expenses	(263,144)	(135,214)
Operating lease liabilities	(273,833)	(279,983)
Contract liabilities	(37,331)	60,584
Assets held for sale	0	41,534
Net Cash used in Operating Activities	(3,779,679)	(3,756,688)
Cash Flows from Investing Activities:
Purchases of property and equipment	(612,090)	(290,468)
Proceeds from the disposal of property and equipment	945,261	0
Net Cash provided by (used in) Investing Activities	333,171	(290,468)
Cash Flows from Financing Activities:
Repayments of finance lease liabilities	(1,115,153)	(200,095)
Net Cash used in Financing Activities	(1,115,153)	(200,095)
Effect of Foreign Currency exchange on cash	(370,744)	244,569
Net Change in Cash and Restricted Cash	(4,932,405)	(4,002,682)
Cash and Restricted Cash at Beginning of Period	10,422,181	16,597,371
Cash and Restricted Cash at End of Period	5,489,776	12,594,689
Supplemental Disclosures of Cash Flow Information:
Cash paid for interest	97,769	81,192
Cash paid for income taxes	0	0
Non-cash financing activities
Financed purchases of property and equipment	$ 83,378	$ 0

Note 1 - Basis of Presentation and Other Information

6 Months Ended

Jun. 30, 2024

Notes to Financial Statements

Significant Accounting Policies [Text Block]

NOTE 1 – BASIS OF PRESENTATION AND OTHER INFORMATION

Recently Issued Accounting Pronouncements

The Company currently believes there are no other issued and not yet effective accounting standards that are materially relevant to its condensed consolidated financial statements.

Note 2 - Liquidity and Going Concern Assessmemt

6 Months Ended

Jun. 30, 2024

Notes to Financial Statements

Substantial Doubt about Going Concern [Text Block]

NOTE 2 – LIQUIDITY AND GOING CONCERN ASSESSMENT

Note 3 - Disaggregation of Revenues and Segment Reporting

6 Months Ended

Jun. 30, 2024

Notes to Financial Statements

Disaggregation of Revenues and Segment Reporting [Text Block]

NOTE 3 – DISAGGREGATION OF REVENUES AND SEGMENT REPORTING

The Company operates in three reportable segments: Water, Ceramics and Plastics.

The Company sells products throughout the world, and sales by geographical region are as follows for the three and six months ended June 30, 2024 and 2023:

	For the Three Months				For the Six Months
	Ended June 30,				Ended June 30,
	2024		2023		2024		2023
Americas	$	329,711	$	441,186	$	1,526,908	$	774,717
Asia-Pacific		92,535		650,095		435,496		1,101,989
Europe		3,285,925		3,119,496		5,936,840		6,219,282
Middle East & Africa		776,891		779,242		821,162		905,550
Total consolidated Revenue	$	4,485,062	$	4,990,019	$	8,720,406	$	9,001,538

The Company’s sales by segment are as follows for the three and six months ended June 30, 2024 and 2023:

	For the Three Months				For the Six Months
	Ended June 30,				Ended June 30,
	2024		2023		2024		2023
Water	$	1,870,625	$	2,070,298	$	3,419,291	$	3,505,217
Ceramics		1,665,138		1,789,465		3,471,474		3,198,837
Plastics		949,299		1,127,455		1,829,641		2,294,683
Corporate		-		2,801		-		2,801
Total consolidated Revenue	$	4,485,062	$	4,990,019	$	8,720,406	$	9,001,538

The Company’s income and total assets segment are as follows:

	For the Three Months						For the Six Months Ended
	Ended June 30,						June 30,
	2024			2023			2024			2023
Income (Loss)
Water	$	(254,251	)	$	2,439		$	(688,739	)	$	(461,036	)
Ceramics		(340,160	)		(439,090	)		(1,318,834	)		(1,000,774	)
Plastics		(240,414	)		(67,272	)		(240,413	)		(133,333	)
Corporate		(1,276,875	)		(1,051,369	)		(1,978,241	)		(2,349,652	)
Total consolidated Loss		(2,111,700	)		(1,555,292	)		(4,499,995	)		(3,944,795	)

	As of
Total Assets	June 30, 2024		December 31, 2023
Water	$	8,702,209	$	9,432,991
Ceramics		13,060,929		14,550,872
Plastics		723,729		759,745
Corporate		6,092,435		11,228,239
Total consolidated Assets	$	28,579,302	$	35,971,847

Note 4 - Accounts Receivable

6 Months Ended

Jun. 30, 2024

Notes to Financial Statements

Accounts and Nontrade Receivable [Text Block]

NOTE 4 – ACCOUNTS RECEIVABLE

Accounts receivable consisted of the following on June 30, 2024, and December 31, 2023:

	June 30, 2024			December 31, 2023
Trade accounts receivable	$	3,016,377		$	3,305,959
Allowance for doubtful accounts		(211,752	)		(134,912	)
Total accounts receivable, net	$	2,804,625		$	3,171,047

The roll-forward of the allowance for doubtful accounts for the periods ended June 30, 2024 and December 31, 2023 is as follows:

	June 30, 2024			December 31, 2023
Allowance for doubtful accounts at the beginning of the period	$	134,912		$	59,559
Bad debt expense		81,940			82,066
Receivables written off during the periods		-			(10,298	)
Effect of currency translation		(5,100	)		3,585
Allowance for doubtful accounts at the end of the period	$	211,752		$	134,912

Note 5 - Inventories

6 Months Ended

Jun. 30, 2024

Notes to Financial Statements

Inventory Disclosure [Text Block]

NOTE 5 – INVENTORIES

Inventories consisted of the following on June 30, 2024, and December 31, 2023:

	June 30, 2024			December 31, 2023
Furnace parts and supplies	$	45,789		$	55,177
Raw materials		3,329,036			3,301,526
Work in process		1,647,283			1,271,458
Finished goods and filtration systems		1,627,439			1,507,113
Reserve for obsolescence		(939,300	)		(867,458	)
Total inventories, net	$	5,620,247		$	5,267,816

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 6 - Contract Assets and Contract Liabilities

6 Months Ended

Jun. 30, 2024

Notes to Financial Statements

Contract with Customer, Contract Asset, Contract Liability [Text Block]

NOTE 6 – CONTRACT ASSETS AND CONTRACT LIABILITIES

The roll-forward of Contract assets and contract liabilities for the periods ended June 30, 2024 and December 31, 2023 is as follows:

	June 30, 2024			December 31, 2023
Cost incurred	$	3,028,377		$	3,225,728
Unbilled project deliveries		730,026			582,557
VAT		136,491			329,980
Other receivables		78,803			92,619
Prepayments		(1,407,098	)		(1,688,427	)
Deferred Revenue		(21,531	)		(33,360	)
	$	2,545,068		$	2,509,097

Distributed as follows:
Contract assets	$	2,878,573		$	2,891,744
Contract liabilities		(333,505	)		(382,647	)
	$	2,545,068		$	2,509,097

Note 7 - Leases

6 Months Ended

Jun. 30, 2024

Notes to Financial Statements

Lessee, Operating and Finance Leases [Text Block]

NOTE 7 – LEASES

Supplemental balance sheet information related to leases as of June 30, 2024 and December 31, 2023 was as follows:

	June 30, 2024			December 31, 2023
Operating leases:
Operating lease right-of-use assets	$	3,657,512		$	4,055,837

Operating lease liabilities – current	$	476,298		$	531,355
Operating lease liabilities – long-term		3,181,843			3,527,082
Total operating lease liabilities	$	3,658,141		$	4,058,437

Finance leases:
Property and equipment, at cost	$	3,967,874		$	5,443,287
Accumulated depreciation		(1,016,026	)		(877,578	)
Property and equipment, net	$	2,951,848		$	4,565,709

Finance lease liabilities – current	$	446,425		$	590,550
Finance lease liabilities – long-term		1,809,424			2,879,932
Total finance lease liabilities	$	2,255,849		$	3,470,482

Weighted average remaining lease term:
Operating leases		7.8			8.3
Finance leases		3.6			4.3

Weighted average discount rate:
Operating leases		6.7	%		6.7	%
Finance leases		5.5	%		6.0	%

Maturities of lease liabilities at June 30, 2024 were as follows:

	Operating Leases			Finance Leases
2024 (remaining 6 months)	$	361,787		$	291,681
2025		680,530			579,039
2026		670,110			543,792
2027		670,110			1,051,729
2028		548,356			74,670
Thereafter		1,752,882			125,869
Total payment under lease agreements		4,683,775			2,666,780
Less imputed interest		(1,025,634	)		(410,931	)
Total lease liabilities	$	3,658,141		$	2,255,849

Note 8 - Long-term Debt

6 Months Ended

Jun. 30, 2024

Notes to Financial Statements

Long-Term Debt [Text Block]

NOTE 8 – LONG-TERM DEBT

The components of notes payable are as follows:

	June 30, 2024			December 31, 2023
Senior Promissory Notes	$	6,000,000			6,000,000
Less: unamortized debt discount		(1,015,358	)		(1,311,989	)
Senior Promissory Notes payable	$	4,984,642		$	4,688,011

Current portion of Senior Promissory Notes payable		-			-
Senior Promissory Notes payable, less current portion		4,984,642			4,688,011
Senior Promissory Notes payable	$	4,984,642		$	4,688,011

Note 9 - Agreements and Commitments

6 Months Ended

Jun. 30, 2024

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

NOTE 9 – AGREEMENTS AND COMMITMENTS

Contingencies – From time to time, we may be involved in litigation relating to claims arising out of our operations in the normal course of business.

Changes in the Company’s current and long-term warranty obligations included in accrued expenses on the balance sheet, as of June 30, 2024 and December 31, 2023, were as follows:

	June 30, 2024			December 31, 2023
Balance at January 1	$	629,100		$	898,072
Warranty costs charged to cost of goods sold		85,835			115,401
Utilization charges against reserve		(13,946	)		(408,234	)
Foreign currency effect		(20,727	)		23,861
Balance at the end of the period	$	680,262		$	629,100

Note 10 - Stockholders' Equity

6 Months Ended

Jun. 30, 2024

Notes to Financial Statements

Equity [Text Block]

NOTE 10 – STOCKHOLDERS’ EQUITY

Stock Issuances

During the six months ended June 30, 2024, the Company has made the following issuances of common stock:

Warrants

The following is a summary of the periodic changes in warrants outstanding for the six months ended June 30, 2024 and 2023:

	2024		2023
Outstanding, December 31		5,021,354		4,490,104
Warrants issued in connection with public offering and private placement		-		-
Exercises and conversions		-		-
Outstanding, June 30		5,021,354		4,490,104

Stock-based Compensation

The Company recognizes compensation costs for RSU grants to Directors and management based on the stock price on the date of the grant.

A summary of the status of the RSUs as of June 30, 2024 and changes during the period are presented below:

	June 30, 2024
	Number of units			Weighted Average Grant-Date Fair value			Aggregated Intrinsic Value

Outstanding, December 31, 2023		314,461		$	3.46		$	-
Granted		311,154			3.20			-
Vested and settled with share issuance		(121,960	)		(3.28	)		-
Forfeited		(98,102	)		(3.54	)		-
Outstanding, June 30, 2024		405,553		$	3.30		$	-

Note 11 - Loss Per Share

6 Months Ended

Jun. 30, 2024

Notes to Financial Statements

Earnings Per Share [Text Block]

NOTE 11 – LOSS PER SHARE

As of June 30, 2024, the Company had 405,553 RSUs, 3,930,008 prefunded warrants, and 1,091,346 warrants, all exercisable for shares of Common Stock.

As of June 30, 2023, the Company had 341,545 RSUs, 3,930,008 prefunded warrants, and 560,096 warrants, all exercisable for shares of Common Stock.

Note 12 - Significant Customers and Concentrations

6 Months Ended

Jun. 30, 2024

Notes to Financial Statements

Concentration Risk Disclosure [Text Block]

NOTE 12 – SIGNIFICANT CUSTOMERS AND CONCENTRATIONS

The following table presents customers accounting for 10% or more of the Company’s revenue:

	For the Three Months						For the Six Months
	Ended June 30,						Ended June 30,
	2024			2023			2024			2023
Customer A		16	%		*	%		*	%		*	%
Customer B		10	%		*	%		*	%		*	%
Customer C		*	%		13	%		*	%		*	%
Customer D		*	%		*	%		11	%		*	%

* Zero or less than 10%

The following table presents customers accounting for 10% or more of the Company’s Accounts receivable:

	June 30, 2024			December 31, 2023
Customer D		20	%		22	%
Customer B		13	%		*	%
Customer E		*	%		13	%

* Zero or less than 10%

Note 13 - Subsequent Events

6 Months Ended

Jun. 30, 2024

Notes to Financial Statements

Subsequent Events [Text Block]

NOTE 13 – SUBSEQUENT EVENTS

None

Insider Trading Arrangements	3 Months Ended	6 Months Ended
Insider Trading Arrangements	Jun. 30, 2024	Jun. 30, 2024
Insider Trading Arr Line Items
Material Terms of Trading Arrangement [Text Block]		ITEM 5. OTHER INFORMATION Insider Trading Plans During the quarter ended June 30, 2024, no director or Section 16 officer adopted, modified, or terminated any “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement” (in each case, as defined in Item 408(a) of Regulation S-K).
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

Significant Accounting Policies (Policies)	6 Months Ended
Significant Accounting Policies (Policies)	Jun. 30, 2024
Accounting Policies [Abstract]
Basis of Accounting, Policy [Policy Text Block]	The accompanying unaudited condensed consolidated financial statements of LiqTech International, Inc. (the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q of Regulation S-X. They do not include all the information and footnotes required by GAAP for complete financial statements. The December 31, 2023 consolidated balance sheet data were derived from audited financial statements but does not include all disclosures required by GAAP. However, except as disclosed herein, there has been no material change in the information disclosed in the notes to the consolidated financial statements for the year ended December 31, 2023 included in the Company’s Annual Report on Form 10-K, as filed with the Securities and Exchange Commission on March 22, 2024. The interim unaudited condensed consolidated financial statements should be read in conjunction with those consolidated financial statements included in the Company’s Annual Report on Form 10-K. In the opinion of management, all adjustments considered necessary for a fair presentation of the financial statements, consisting solely of normal recurring adjustments, have been made. Operating results for the three and six months ended June 30, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024.
New Accounting Pronouncements, Policy [Policy Text Block]	*Recently Issued Accounting Pronouncements* In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures,” which requires a public entity to disclose significant segment expenses and other segment items on an annual and interim basis and to provide in interim periods all disclosures about reportable segment’s profit or loss and assets that are currently required annually. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. These amendments are to be applied retrospectively. The Company is currently evaluating the impact this standard will have on its condensed consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” which enhances the transparency and decision usefulness of income tax disclosures by requiring; (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. It also includes certain other amendments to improve the effectiveness of income tax disclosures. ASU 2023-09 is effective for fiscal years beginning after December 15, 2025, with early adoption permitted. These amendments are to be applied prospectively, with retrospective application permitted. The Company is currently evaluating the impact this standard will have on its condensed consolidated financial statements. The Company currently believes there are no other issued and not yet effective accounting standards that are materially relevant to its condensed consolidated financial statements.

Note 3 - Disaggregation of Revenues and Segment Reporting (Tables)

6 Months Ended

Jun. 30, 2024

Notes Tables

Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block]

	For the Three Months				For the Six Months
	Ended June 30,				Ended June 30,
	2024		2023		2024		2023
Americas	$	329,711	$	441,186	$	1,526,908	$	774,717
Asia-Pacific		92,535		650,095		435,496		1,101,989
Europe		3,285,925		3,119,496		5,936,840		6,219,282
Middle East & Africa		776,891		779,242		821,162		905,550
Total consolidated Revenue	$	4,485,062	$	4,990,019	$	8,720,406	$	9,001,538

Schedule of Segment Reporting Information, by Segment [Table Text Block]

	For the Three Months				For the Six Months
	Ended June 30,				Ended June 30,
	2024		2023		2024		2023
Water	$	1,870,625	$	2,070,298	$	3,419,291	$	3,505,217
Ceramics		1,665,138		1,789,465		3,471,474		3,198,837
Plastics		949,299		1,127,455		1,829,641		2,294,683
Corporate		-		2,801		-		2,801
Total consolidated Revenue	$	4,485,062	$	4,990,019	$	8,720,406	$	9,001,538

	For the Three Months						For the Six Months Ended
	Ended June 30,						June 30,
	2024			2023			2024			2023
Income (Loss)
Water	$	(254,251	)	$	2,439		$	(688,739	)	$	(461,036	)
Ceramics		(340,160	)		(439,090	)		(1,318,834	)		(1,000,774	)
Plastics		(240,414	)		(67,272	)		(240,413	)		(133,333	)
Corporate		(1,276,875	)		(1,051,369	)		(1,978,241	)		(2,349,652	)
Total consolidated Loss		(2,111,700	)		(1,555,292	)		(4,499,995	)		(3,944,795	)

	As of
Total Assets	June 30, 2024		December 31, 2023
Water	$	8,702,209	$	9,432,991
Ceramics		13,060,929		14,550,872
Plastics		723,729		759,745
Corporate		6,092,435		11,228,239
Total consolidated Assets	$	28,579,302	$	35,971,847

Note 4 - Accounts Receivable (Tables)

6 Months Ended

Jun. 30, 2024

Notes Tables

Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

	June 30, 2024			December 31, 2023
Trade accounts receivable	$	3,016,377		$	3,305,959
Allowance for doubtful accounts		(211,752	)		(134,912	)
Total accounts receivable, net	$	2,804,625		$	3,171,047

Financing Receivable, Allowance for Credit Loss [Table Text Block]

	June 30, 2024			December 31, 2023
Allowance for doubtful accounts at the beginning of the period	$	134,912		$	59,559
Bad debt expense		81,940			82,066
Receivables written off during the periods		-			(10,298	)
Effect of currency translation		(5,100	)		3,585
Allowance for doubtful accounts at the end of the period	$	211,752		$	134,912

Note 5 - Inventories (Tables)

6 Months Ended

Jun. 30, 2024

Notes Tables

Schedule of Inventory, Current [Table Text Block]

	June 30, 2024			December 31, 2023
Furnace parts and supplies	$	45,789		$	55,177
Raw materials		3,329,036			3,301,526
Work in process		1,647,283			1,271,458
Finished goods and filtration systems		1,627,439			1,507,113
Reserve for obsolescence		(939,300	)		(867,458	)
Total inventories, net	$	5,620,247		$	5,267,816

Note 6 - Contract Assets and Contract Liabilities (Tables)

6 Months Ended

Jun. 30, 2024

Notes Tables

Contract with Customer, Contract Asset, Contract Liability, and Receivable [Table Text Block]

	June 30, 2024			December 31, 2023
Cost incurred	$	3,028,377		$	3,225,728
Unbilled project deliveries		730,026			582,557
VAT		136,491			329,980
Other receivables		78,803			92,619
Prepayments		(1,407,098	)		(1,688,427	)
Deferred Revenue		(21,531	)		(33,360	)
	$	2,545,068		$	2,509,097

Distributed as follows:
Contract assets	$	2,878,573		$	2,891,744
Contract liabilities		(333,505	)		(382,647	)
	$	2,545,068		$	2,509,097

Note 7 - Leases (Tables)

6 Months Ended

Jun. 30, 2024

Notes Tables

Lessee, Operating and Finance Lease, Assets and Liabilities [Table Text Block]

	June 30, 2024			December 31, 2023
Operating leases:
Operating lease right-of-use assets	$	3,657,512		$	4,055,837

Operating lease liabilities – current	$	476,298		$	531,355
Operating lease liabilities – long-term		3,181,843			3,527,082
Total operating lease liabilities	$	3,658,141		$	4,058,437

Finance leases:
Property and equipment, at cost	$	3,967,874		$	5,443,287
Accumulated depreciation		(1,016,026	)		(877,578	)
Property and equipment, net	$	2,951,848		$	4,565,709

Finance lease liabilities – current	$	446,425		$	590,550
Finance lease liabilities – long-term		1,809,424			2,879,932
Total finance lease liabilities	$	2,255,849		$	3,470,482

Weighted average remaining lease term:
Operating leases		7.8			8.3
Finance leases		3.6			4.3

Weighted average discount rate:
Operating leases		6.7	%		6.7	%
Finance leases		5.5	%		6.0	%

Maturity of Operating and Finance Lease Liabilities [Table Text Block]

	Operating Leases			Finance Leases
2024 (remaining 6 months)	$	361,787		$	291,681
2025		680,530			579,039
2026		670,110			543,792
2027		670,110			1,051,729
2028		548,356			74,670
Thereafter		1,752,882			125,869
Total payment under lease agreements		4,683,775			2,666,780
Less imputed interest		(1,025,634	)		(410,931	)
Total lease liabilities	$	3,658,141		$	2,255,849

Note 8 - Long-term Debt (Tables)

6 Months Ended

Jun. 30, 2024

Notes Tables

Schedule of Debt [Table Text Block]

	June 30, 2024			December 31, 2023
Senior Promissory Notes	$	6,000,000			6,000,000
Less: unamortized debt discount		(1,015,358	)		(1,311,989	)
Senior Promissory Notes payable	$	4,984,642		$	4,688,011

Current portion of Senior Promissory Notes payable		-			-
Senior Promissory Notes payable, less current portion		4,984,642			4,688,011
Senior Promissory Notes payable	$	4,984,642		$	4,688,011

Note 9 - Agreements and Commitments (Tables)

6 Months Ended

Jun. 30, 2024

Notes Tables

Schedule of Product Warranty Liability [Table Text Block]

	June 30, 2024			December 31, 2023
Balance at January 1	$	629,100		$	898,072
Warranty costs charged to cost of goods sold		85,835			115,401
Utilization charges against reserve		(13,946	)		(408,234	)
Foreign currency effect		(20,727	)		23,861
Balance at the end of the period	$	680,262		$	629,100

Note 10 - Stockholders' Equity (Tables)

6 Months Ended

Jun. 30, 2024

Notes Tables

Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block]

	2024		2023
Outstanding, December 31		5,021,354		4,490,104
Warrants issued in connection with public offering and private placement		-		-
Exercises and conversions		-		-
Outstanding, June 30		5,021,354		4,490,104

Schedule of Nonvested Restricted Stock Units Activity [Table Text Block]

	June 30, 2024
	Number of units			Weighted Average Grant-Date Fair value			Aggregated Intrinsic Value

Outstanding, December 31, 2023		314,461		$	3.46		$	-
Granted		311,154			3.20			-
Vested and settled with share issuance		(121,960	)		(3.28	)		-
Forfeited		(98,102	)		(3.54	)		-
Outstanding, June 30, 2024		405,553		$	3.30		$	-

Note 12 - Significant Customers and Concentrations (Tables)

6 Months Ended

Jun. 30, 2024

Notes Tables

Schedules of Concentration of Risk, by Risk Factor [Table Text Block]

	For the Three Months						For the Six Months
	Ended June 30,						Ended June 30,
	2024			2023			2024			2023
Customer A		16	%		*	%		*	%		*	%
Customer B		10	%		*	%		*	%		*	%
Customer C		*	%		13	%		*	%		*	%
Customer D		*	%		*	%		11	%		*	%

	June 30, 2024			December 31, 2023
Customer D		20	%		22	%
Customer B		13	%		*	%
Customer E		*	%		13	%

Note 2 - Liquidity and Going Concern Assessmemt (Details Textual) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Cash and Cash Equivalents, at Carrying Value	$ 5,489,776
Working Capital Deficit	10,922,792
Retained Earnings (Accumulated Deficit)	(80,422,175)	$ (75,922,180)
Assets	28,579,302	35,971,847
Liabilities	$ 16,305,054	$ 18,695,831

Note 3 - Disaggregation of Revenues and Segment Reporting (Details Textual)	6 Months Ended
	Jun. 30, 2024
Number of Reportable Segments	3

Note 3 - Disaggregation of Revenues and Segment Reporting - Net Sales by Geographical Region (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Revenue	$ 4,485,062	$ 4,990,019	$ 8,720,406	$ 9,001,538
Reportable Geographical Components [Member]
Revenue	4,485,062	4,990,019	8,720,406	9,001,538
Americas [Member] \| Reportable Geographical Components [Member]
Revenue	329,711	441,186	1,526,908	774,717
Asia Pacific [Member] \| Reportable Geographical Components [Member]
Revenue	92,535	650,095	435,496	1,101,989
Europe [Member] \| Reportable Geographical Components [Member]
Revenue	3,285,925	3,119,496	5,936,840	6,219,282
Middle East and Africa [Member] \| Reportable Geographical Components [Member]
Revenue	$ 776,891	$ 779,242	$ 821,162	$ 905,550

Note 3 - Disaggregation of Revenues and Segment Reporting - Summary of Segment Activity (Details) - USD ($)	3 Months Ended				6 Months Ended
	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Revenue	$ 4,485,062		$ 4,990,019		$ 8,720,406	$ 9,001,538
Net loss	(2,111,700)	$ (2,388,295)	(1,555,292)	$ (2,389,503)	(4,499,995)	(3,944,795)
Segment assets	28,579,302				28,579,302		$ 35,971,847
Water Segment [Member]
Net loss	(254,251)		2,439		(688,739)	(461,036)
Segment assets	8,702,209				8,702,209		9,432,991
Water Segment [Member] \| Operating Segments [Member]
Revenue	1,870,625		2,070,298		3,419,291	3,505,217
Ceramics Segment [Member]
Net loss	(340,160)		(439,090)		(1,318,834)	(1,000,774)
Segment assets	13,060,929				13,060,929		14,550,872
Ceramics Segment [Member] \| Operating Segments [Member]
Revenue	1,665,138		1,789,465		3,471,474	3,198,837
Plastics Segment [Member] \| Operating Segments [Member]
Revenue	949,299		1,127,455		1,829,641	2,294,683
Plastic Products [Member]
Net loss	(240,414)		(67,272)		(240,413)	(133,333)
Segment assets	723,729				723,729		759,745
Corporate Segment [Member] \| Operating Segments [Member]
Revenue	0		2,801		0	2,801
Other Operating Segment [Member]
Net loss	(1,276,875)		$ (1,051,369)		(1,978,241)	$ (2,349,652)
Segment assets	$ 6,092,435				$ 6,092,435		$ 11,228,239

Note 4 - Accounts Receivable - Summary of Accounts Receivables (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023	Dec. 31, 2022
Trade accounts receivable	$ 3,016,377	$ 3,305,959
Allowance for doubtful accounts	(211,752)	(134,912)	$ (59,559)
Total accounts receivable, net	$ 2,804,625	$ 3,171,047

Note 4 - Accounts Receivable - Allowance for Doubtful Accounts (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Allowance for doubtful accounts at the beginning of the period	$ 134,912	$ 59,559
Bad debt expense	81,940	82,066
Receivables written off during the periods	0	(10,298)
Effect of currency translation	(5,100)	3,585
Allowance for doubtful accounts at the end of the period	$ 211,752	$ 134,912

Note 5 - Inventories - Summary of Inventory (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Furnace parts and supplies	$ 45,789	$ 55,177
Raw materials	3,329,036	3,301,526
Work in process	1,647,283	1,271,458
Finished goods and filtration systems	1,627,439	1,507,113
Reserve for obsolescence	(939,300)	(867,458)
Total inventories, net	$ 5,620,247	$ 5,267,816

Note 6 - Contract Assets and Contract Liabilities - Contract Assets and Liabilities (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Cost incurred	$ 3,028,377	$ 3,225,728
Unbilled project deliveries	730,026	582,557
VAT	136,491	329,980
Other receivables	78,803	92,619
Prepayments	(1,407,098)	(1,688,427)
Deferred Revenue	(21,531)	(33,360)
Contract with Customer, Asset (Liability), Net	2,545,068	2,509,097
Contract assets	2,878,573	2,891,744
Contract liabilities	(333,505)	(382,647)
Contract with Customer, Asset (Liability), Net	$ 2,545,068	$ 2,509,097

Note 7 - Leases (Details Textual)	6 Months Ended
Note 7 - Leases (Details Textual)	Jun. 30, 2024 USD ($)
Operating Lease, Payments	$ 1,186,746
Finance Lease, Principal Payments	400,432
Finance Lease Expense	398,544
Other Expense [Member]
Operating Lease, Payments	$ 91,937

Note 7 - Leases - Balance Sheet Information (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Operating lease right-of-use assets	$ 3,657,512	$ 4,055,837
Operating lease liabilities – current	476,298	531,355
Operating lease liabilities – long-term	3,181,843	3,527,082
Total operating lease liability	3,658,141	4,058,437
Property and equipment, at cost	3,967,874	5,443,287
Accumulated depreciation	(1,016,026)	(877,578)
Property and equipment, net	2,951,848	4,565,709
Finance lease liabilities – current	446,425	590,550
Finance lease liabilities – long-term	1,809,424	2,879,932
Total finance lease liability	$ 2,255,849	$ 3,470,482
Operating leases (Year)	7 years 9 months 18 days	8 years 3 months 18 days
Finance leases (Year)	3 years 7 months 6 days	4 years 3 months 18 days
Operating leases	6.70%	6.70%
Finance leases	5.50%	6.00%

Note 7 - Leases - Maturities of Lease Liabilities (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
2024 (remaining 9 months), operating lease	$ 361,787
2024 (remaining 9 months), financing lease	291,681
2025, operating lease	680,530
2025, financing lease	579,039
2026, operating lease	670,110
2026, financing lease	543,792
2027, operating lease	670,110
2027, financing lease	1,051,729
2028, operating lease	548,356
2028, financing lease	74,670
Thereafter, operating lease	1,752,882
Thereafter, financing lease	125,869
Total payment under operating lease agreements	4,683,775
Total payment under lease agreements	2,666,780
Less imputed interest on operating lease	(1,025,634)
Less imputed interest on finance lease	(410,931)
Total operating lease liability	3,658,141	$ 4,058,437
Total finance lease liability	$ 2,255,849	$ 3,470,482

Note 8 - Long-term Debt (Details Textual) - Senior Promissory Notes [Member] - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Interest Expense, Debt	$ 0	$ 0	$ 0	$ 0
Amortization of Debt Issuance Costs	$ 150,591	$ 86,790	$ 296,631	$ 171,318

Note 8 - Long-term Debt - Notes Payable (Details) - Senior Promissory Notes [Member] - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Senior Promissory Notes	$ 6,000,000	$ 6,000,000
Less: unamortized debt discount	(1,015,358)	(1,311,989)
Senior Promissory Notes payable	4,984,642	4,688,011
Current portion of Senior Promissory Notes payable	0	0
Senior Promissory Notes payable, less current portion	$ 4,984,642	$ 4,688,011

Note 9 - Agreements and Commitments (Details Textual)	6 Months Ended
Note 9 - Agreements and Commitments (Details Textual)	Jun. 30, 2024
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 9 - Agreements and Commitments - Changes in Warranty Obligations (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Balance	$ 629,100	$ 898,072
Warranty costs charged to cost of goods sold	85,835	115,401
Utilization charges against reserve	(13,946)	(408,234)
Foreign currency effect	(20,727)	23,861
Balance	$ 680,262	$ 629,100

Note 10 - Stockholders' Equity (Details Textual) - USD ($)			3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 24, 2024	Jan. 03, 2024	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2013	Dec. 31, 2023
Common Stock, Shares Authorized (in shares)			50,000,000		50,000,000			50,000,000
Common Stock, Par or Stated Value Per Share (in dollars per share)			$ 0.001		$ 0.001			$ 0.001
Common Stock, Shares, Issued (in shares)			5,819,272		5,819,272			5,727,310
Share-Based Payment Arrangement, Amount Withheld for Tax Withholding Obligation			$ 104,940
Common Stock, Shares, Outstanding (in shares)			5,819,272		5,819,272			5,727,310
Restricted Stock Units (RSUs) [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares)					311,154
Share-Based Payment Arrangement, Expense			$ 166,617	$ 193,924	$ 359,938	$ 351,097
Share-Based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount			$ 978,358		$ 978,358
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)					353,471
Director [Member]
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures (in shares)		24,500
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures		$ 73,500
Director [Member] \| Restricted Stock Units (RSUs) [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares)					52,082
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)	11,932	85,528
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures	$ 36,750	$ 289,672
Share-Based Payment Arrangement, Shares Withheld for Tax Withholding Obligation (in shares)		29,998
Share-Based Payment Arrangement, Amount Withheld for Tax Withholding Obligation		$ 104,940
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

Note 10 - Stockholders' Equity - Warrants (Details) - shares	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Outstanding, December 31 (in shares)	5,021,354	4,490,104
Warrants issued in connection with public offering and private placement (in shares)	0	0
Exercises and conversions (in shares)	0	0
Outstanding, June 30 (in shares)	5,021,354	4,490,104

Note 10 - Stockholders' Equity - Share Incentive Plan Activity (Details) - Restricted Stock Units (RSUs) [Member] - USD ($)	6 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Outstanding, units (in shares)	314,461
Outstanding, weighted average grant-date fair value (in dollars per share)	$ 3.46
Outstanding, aggregated intrinsic value	$ 0	$ 0
Granted, units (in shares)	311,154
Granted, weighted average grant-date fair value (in dollars per share)	$ 3.2
Vested and settled with share issuance, units (in shares)	(121,960)
Vested and settled with share issuance, weighted average grant-date fair value (in dollars per share)	$ (3.28)
Forfeited, units (in shares)	(98,102)
Forfeited, weighted average grant-date fair value (in dollars per share)	$ (3.54)
Outstanding, units (in shares)	405,553
Outstanding, weighted average grant-date fair value (in dollars per share)	$ 3.3

Note 11 - Loss Per Share (Details Textual) - shares	6 Months Ended
Note 11 - Loss Per Share (Details Textual) - shares	Jun. 30, 2024	Jun. 30, 2023
Restricted Stock Units (RSUs) [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares)	405,553	341,545
Prefunded Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares)	3,930,008	3,930,008
Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares)	1,091,346	560,096

Note 12 - Significant Customers and Concentrations (Details Textual) - Geographic Concentration Risk [Member] - Assets, Total [Member]	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
DENMARK
Concentration Risk, Percentage	97.00%	98.00%
UNITED STATES
Concentration Risk, Percentage	1.00%	0.00%
CHINA
Concentration Risk, Percentage	2.00%	2.00%

Note 12 - Significant Customers and Concentrations - Concentration of Risk (Details) - Customer Concentration Risk [Member]	3 Months Ended		6 Months Ended	12 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Dec. 31, 2023
Revenue Benchmark [Member] \| Customer A [Member]
Concentration Risk, Percentage	16.00%
Revenue Benchmark [Member] \| Customer D [Member]
Concentration Risk, Percentage			11.00%
Revenue Benchmark [Member] \| Customer B [Member]
Concentration Risk, Percentage	10.00%
Revenue Benchmark [Member] \| Customer C [Member]
Concentration Risk, Percentage		13.00%
Accounts Receivable [Member] \| Customer D [Member]
Concentration Risk, Percentage			20.00%	22.00%
Accounts Receivable [Member] \| Customer B [Member]
Concentration Risk, Percentage			13.00%
Accounts Receivable [Member] \| Customer E [Member]
Concentration Risk, Percentage				13.00%

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