LIQTECH INTERNATIONAL INC
For the period ended Jun 30, 2024. Filed Aug 14, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 14, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
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Table of Contents
LIQTECH INTERNATIONAL, INC. AND SUBSIDIARIES
Quarterly Report on Form 10-Q
For the Period Ended June 30, 2024
TABLE OF CONTENTS
| 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 |
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; |
| ● | 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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