"LiqTech has reported a strong start to 2012, our first quarter results highlight the progress we've made and we are very pleased. We have increased our sales, increased capacity, raised the necessary capital to continue to execute our business plan, expanded operations into new strategic locations, and uplisted our securities to the highest level on the OTC Markets," stated Mr. Andreassen, CEO of LiqTech International. "We remain focused on building our outreach into new markets and international expansion for all areas of our business including the Diesel Particle Filters and our Ceramic Silicon membranes for produced water in the oil and gas industries. Additionally, we continue research and development for using our processes and technology to provide clean water to millions of people worldwide. We also continue to work with Pirelli to consummate an agreement that we believe will benefit our Company and our shareholder value. Finally, we plan to continue to fundamentally grow our Company to achieve the fundamentals to allow the Company to uplist to a prominent stock exchange in 2013. We are proud of the team we have assembled and will continue to strive to increase shareholder value."
Financial highlights for the quarter ended March 31, 2012:
- Net sales for the three month period ended March 31, 2012 was $6,341,721 compared to $2,917,395 for the same period in 2011, representing an increase of $3,424,326 or 117%.
- Gross profit for the three month period ended March 31, 2012 was $2,089,684 compared to $679,735 for the same period in 2011, representing an increase of $1,409,949 or 207%.
- Net income attributable to the company for the three month period ended March 31, 2012 was a profit of $322,601 compared to a loss of $128,202 for the comparable period in 2011.
Other Highlights for the quarter ended March 31, 2012:
- The Company began trading on the OTC market's highest tier; OTCQX.
- LiqTech entered into a non-binding letter of intent with Pirelli & C. Eco Technology S.p.A.: we continue to work with Pirelli to consummate an agreement.
- The Company successfully completed the closing of a registered direct placement of its common stock and raised net proceeds of approximately $7.4 million.
Business Highlights by Product Line:
- Membranes:
- Increased sales and marketing resources with a focus on oil and water separation for produced water, pretreatment of reverses osmosis, waste water treatment and industrial applications.
- Established an office in Singapore and we are now part of the new sponsored waste water program with the Singapore Public Utility Board (PUB) with access to the Environmental Development Board (EDB) in developing new water sources from waste water.
- Completed a successful factory test on produced water in The North Sea, which we consider to be a break-through for marketing purposes. We are now actively involved in a number of produced water programs in Africa, Canada, Middle East, United States and Romania.
- Signed our first customer for pretreatment for reverse osmosis in Israel.
- Received a significant order for replacement of sand filters for public pools together with a strategic partner.
- Received a first order of pretreatment for a reverse osmosis plant treating manure water.
- Received a first order for power plant filtering.
- Emissions:
- Our new developed OEM filter (asymmetric) is being tested with two companies in Korea, two companies in China, one company in Brazil and one company in Europe.
- The Low Emission Zone (LEZ) program in London has almost been completed in the first quarter where we estimate to have achieved at least a 35% market share.
- Kiln Furniture:
- New extruded porous filtration plates have been developed and tested for membrane bio reactors, one of the fastest growing markets. A large German waste water treatment company has tested and demonstrated a record high flux rate.
- New, porous SiC plates for mining applications and mineral recovery have been developed and will be commercially available by the end of 2012. This is a new technology for a large established market with a value proposition of 50% lower energy with a likely lifetime extension for use in extremely corrosive environments.
- Six large companies are using our Kiln furniture in their steatite (semiconductor) production process.
- New fast firing furnace technology has improved our kiln furniture quality.
- Received our first order for a dental production heat-treatment process.
ABOUT LIQTECH INTERNATIONAL, INC.
LiqTech International, Inc., a Nevada corporation, is a clean technology company that for more than a decade has developed and provided state-of-the-art technologies for gas and liquid purification using ceramic silicon carbide filters, particularly, highly specialized filters for the control of soot exhaust particles from diesel engines and for liquid filtration. It also manufactures kiln furniture. Using nanotechnology, LiqTech develops products using proprietary silicon carbide technology. LiqTech's products are based on unique silicon carbide membranes which facilitate new applications and improve existing technologies. For more information, please visit
www.liqtech.com.
Forward-Looking Statements
This press release contains "forward-looking statements." Although the forward-looking statements in this release reflect the good faith judgment of management, forward-looking statements are inherently subject to known and unknown risks and uncertainties that may cause actual results to be materially different from those discussed in these forward-looking statements. Readers are urged to carefully review and consider the various disclosures made by us in the our reports filed with the Securities and Exchange Commission, including the risk factors that attempt to advise interested parties of the risks that may affect our business, financial condition, results of operation and cash flows. If one or more of these risks or uncertainties materialize, or if the underlying assumptions prove incorrect, our actual results may vary materially from those expected or projected. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. We assume no obligation to update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this release.
-Financial charts follow-
LIQTECH INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
As of As of
March 31, December 31,
2012 2011
------------- -------------
Current Assets: (UNAUDITED)
Cash $ 6,552,392 $ 1,033,057
Accounts receivable, net 5,309,656 5,299,569
Other receivables 785,444 1,528,362
Inventories 3,399,566 2,980,583
Prepaid expenses 285,290 301,375
Current deferred tax asset 47,383 17,786
------------- -------------
Total Current Assets 16,379,731 11,160,732
------------- -------------
Property and Equipment, net of accumulated
depreciation 7,049,330 6,647,217
------------- -------------
Other Assets:
Other intangible assets 33,834 34,167
Other investments 41,361 6,483
Deposits 150,402 146,184
------------- -------------
Total Other Assets 225,597 186,834
------------- -------------
Total Assets $ 23,654,658 $ 17,994,783
============= =============
LIQTECH INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
As of As of
March 31, December 31,
2012 2011
------------- -------------
(UNAUDITED)
Current Liabilities:
Lines of credit $ - $ 1,259,936
Notes payable - current portion - 259,396
Notes payable - related party, net of
discount 3,467,750 3,328,183
Current portion of capital lease obligation 199,622 191,444
Accounts payable - trade 2,309,862 3,026,960
Accrued expenses 1,575,336 1,212,746
Accrued income taxes payable 126,130 3,710
Other accrued liabilities 5,919 154
------------- -------------
Total Current Liabilities 7,684,619 9,282,529
------------- -------------
Notes payable and long-term debt, less current
portion - 350,000
Long-term capital lease obligations, less
current portion 929,689 950,351
Deferred tax liability 628,772 668,484
------------- -------------
Total Long-Term Liabilities 1,558,461 1,968,835
------------- -------------
Total Liabilities 9,243,080 11,251,364
------------- -------------
Stockholders' Equity:
Common stock; par value $0.001, 100,000,000
shares authorized, 24,111,500 and 21,600,000
shares issued and outstanding at March 31,
2012, and December 31, 2011, respectively 24,112 21,600
Additional paid-in capital 12,835,952 5,603,517
Retained earnings 5,607,185 5,284,583
Deferred compensation (235,680) (268,282)
Other comprehensive income, net (378,192) (596,011)
Note receivable from a shareholder, net of
discount (3,467,750) (3,328,183)
Uncontrolled interest in subsidiaries 25,951 26,195
------------- -------------
Total Stockholders' Equity 14,411,578 6,743,419
------------- -------------
Total Liabilities and Stockholders' Equity $ 23,654,658 $ 17,994,783
============= =============
LIQTECH INTERNATIONAL, INC. AND SUBSIDIARIES
(UNAUDITED) CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE INCOME
For the Three Months Ended
March 31
----------------------------
2012 2011
------------- -------------
Net Sales $ 6,341,721 $ 2,917,395
Cost of Goods Sold 4,252,037 2,237,660
------------- -------------
Gross Profit 2,089,684 679,735
------------- -------------
Operating Expenses:
Selling expenses 659,918 404,331
General and administrative expenses 722,512 277,793
Research and development 226,674 113,538
------------- -------------
Total Operating Expenses 1,609,104 795,662
------------- -------------
Income from Operations 480,580 (115,927)
------------- -------------
Other Income (Expense)
Interest and other income 38,963 10,726
Interest (expense) (84,516) (5,779)
(Loss) on currency transactions (1,449) (27,372)
------------- -------------
Total Other Income (Expense) (47,002) (22,425)
------------- -------------
Income Before Income Taxes 433,578 (138,352)
Income Tax Expense 110,977 (26,678)
Net Income (Loss) 322,601 (111,674)
Less Net Income (Loss) Attributable To Non-
Controlled Interest in Subsidiaries - 16,528
------------- -------------
Net Income (Loss) Attributable To LiqTech 322,601 (128,202)
============= =============
Basic Earnings Per Share $ 0.01 $ (0.01)
------------- -------------
Weighted Average Common Shares Outstanding 22,234,775 9,308,333
------------- -------------
Diluted Earnings Per Share $ 0.01 $ (0.01)
------------- -------------
Weighted Average Common Shares Outstanding
Assuming Dilution 27,415,788 9,308,333
------------- -------------
LIQTECH INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME
For the
Three Months Ended
March 31,
2012 2011
----------- -----------
Net Income (Loss) 322,601 (111,674)
Currency Translation Net Of Taxes 217,575 323,891
----------- -----------
Other Comprehensive Income (Loss) $ 540,176 $ 212,217
----------- -----------
Comprehensive Income (Loss)
Attributable To Non-controlling
Interest In Subsidiaries (244) 60,111
Comprehensive Income Attributable
----------- -----------
To LiqTech International, Inc. $ 540,420 $ 152,106
----------- -----------
Be the first to review this article
