Table of Contents 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 September 30, 2023 or ☐ 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 20-143 ...

Table of Contents 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, 2023 or ☐ 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. Indicate by check mark whether the registrant has submitted electronicall ...

LiqTech International, Inc. (NASDAQ:LIQT) Q2 2023 Earnings Conference Call August 10, 2023 9:00 AM ET Company Participants Rob Blum - Lytham Partners, LLC Fei Chen - Chief Executive Officer Simon Stadil - Chief Financial Officer Conference Call Participants Rob Brown - Lake Street Capital Markets Operator Hello, and welcome to LiqTech International's Second Quarter 2023 Financial Results Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there ...

Revenue and Sales Performance - For the three months ended March 31, 2023, total revenue was $4,011,519, an increase of 10.3% compared to $3,637,236 for the same period in 2022[53]. - Revenue distribution by region showed Europe at 77%, up from 73% in 2022, while the Americas increased to 9% from 4%[53]. - Water product line revenue significantly increased to $1,434,919, representing 36% of total revenue, compared to $592,990 and 16% in the prior year[54]. - Total consolidated revenue for Q1 2023 was $4,011,519, a 10% increase from $3,637,236 in Q1 2022, driven by higher sales in liquid filtration systems and aftermarket sales[120]. - Gross profit for Q1 2023 was $391,342, representing a 60% increase from $245,541 in Q1 2022, attributed to revenue growth and improved pricing discipline[121]. Expenses and Cost Management - Total operating expenses decreased by 28% to $2,584,003 in Q1 2023 from $3,579,202 in Q1 2022, primarily due to cost reduction efforts[122]. - Research and development costs for the three-month period ended March 31, 2023, were $342,619, a decrease of 43% from $602,737 in the same period of 2022[61]. - Advertising costs for the three-month periods ended March 31, 2023, and 2022 were $32,599 and $55,524 respectively, reflecting a reduction of 41%[60]. - General and administrative expenses decreased by 45% to $1,058,949 in Q1 2023 from $1,916,517 in Q1 2022, resulting from cost reduction and reorganization efforts[124]. - Selling expenses increased by 12% to $1,182,435 in Q1 2023 from $1,059,948 in Q1 2022, due to higher costs associated with sales efforts and marketing activities[123]. - Other expenses improved by 51% to $(211,134) in Q1 2023 from $(427,707) in Q1 2022, reflecting reduced interest expenses and amortization costs[126]. Financial Position and Liquidity - The company held $1,469,325 in restricted cash as of March 31, 2023, compared to $1,440,394 at December 31, 2022[37]. - As of March 31, 2023, the company had cash of $14,309,933 and net working capital of $20,123,957, a decrease of $1,457,330 in net working capital compared to December 31, 2022[133]. - The company completed a $26.5 million public offering in 2022, significantly improving its near-term liquidity position[128]. - The company reported an accumulated deficit of $69,740,538 and total liabilities of $17,256,096 as of March 31, 2023, raising substantial doubt about its ability to continue as a going concern for one year[135]. - The company has initiated substantial cost reductions and profitability improvement measures to develop a sustainable path to profitability[136]. Debt and Financing - The Company recognized no interest expense related to the convertible note for the three months ended March 31, 2023, compared to $187,500 for the same period in 2022[78]. - The Company issued Senior Promissory Notes totaling $6.0 million on June 22, 2022, with a term of 24 months and no interest during this period[79]. - As of March 31, 2023, the Senior Promissory Notes payable amounted to $5,564,842, after accounting for an unamortized debt discount of $435,158[83]. - The company is dependent on additional financing to fund operations, with potential risks of significant dilution to stockholders if equity financing is pursued[136]. - Funding expected during fiscal 2023 is anticipated to be used for existing and future obligations, liabilities, and working capital needs[137]. Inventory and Assets - The net inventory as of March 31, 2023, was $4,421,748, an increase of 8.8% from $4,062,001 as of December 31, 2022[69]. - Total assets as of March 31, 2023, were $38,741,734, a decrease from $40,125,655 as of December 31, 2022[112]. - Approximately 95% of the Company's assets were located in Denmark as of March 31, 2023, compared to 65% as of December 31, 2022[110]. Contractual Obligations and Liabilities - As of March 31, 2023, the Company reported contract assets of $2,447,668 and contract liabilities of $(710,604), compared to $2,253,295 and $(649,557) respectively as of December 31, 2022, indicating an increase in contract assets by 8.6% and contract liabilities by 9.4%[60]. - Contract liabilities are recorded when billing exceeds capitalized contract assets, indicating a strong backlog of orders[43]. - The balance of warranty obligations decreased from $898,072 as of January 1, 2023, to $694,943 by March 31, 2023, reflecting utilization charges and foreign currency effects[89]. Stock and Equity - The weighted average number of common shares used in basic earnings per share increased to 45,228,596 for the three months ended March 31, 2023, up from 21,350,455 in 2022[92]. - The Company had outstanding balances of 35,920,000 warrants as of March 31, 2023, significantly up from 1,015,000 in the same period of 2022[105]. - The Company recognized stock-based compensation expense related to RSU grants of $157,174 for the three-month period ended March 31, 2023, compared to $178,778 in 2022[108]. - As of March 31, 2023, the Company had 2,832,909 RSUs outstanding, an increase from 561,862 RSUs in the same period of 2022[91].

LiqTech International, Inc. (NASDAQ:LIQT) Q1 2023 Earnings Conference Call May 11, 2023 9:00 AM ET Company Participants Robert Blum - Lytham Partners, LLC Fei Chen - CEO Simon Stadil - CFO Conference Call Participants Rob Brown - Lake Street Capital Markets Operator Hello and welcome to LiqTech International's First Quarter 2023 Financial Results Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Robert Blum with Lytham Partner ...

Company Overview - LiqTech International, Inc. specializes in ceramic silicon carbide filters and membranes for gas and liquid purification, with a focus on industrial wastewater, acid purification, and oil & gas applications [15]. - The company has established a strong management team with extensive experience in clean technology and filtration, driving growth through customer relationship development and new product innovation [34]. Market Opportunities - The global ceramic membrane market is projected to grow at a CAGR of 11.4%, increasing from $5.4 billion in 2021 to $14.3 billion by 2030, highlighting significant market opportunities for LiqTech's products [34]. - The industrial water and wastewater treatment market is expected to reach $7.7 billion by 2030, growing at a CAGR of 11.2% from 2021, indicating strong demand for LiqTech's filtration solutions [35]. - The market for marine water filtration systems is projected to retrofit 8,000-10,000 ships with scrubber systems over the next five years, with nearly 4,000 ships already having installed or ordered scrubbers by the end of 2019 [37]. - The commercial pool market in Europe was valued at $1.5 billion in 2021 and is expected to grow at a CAGR of 6.2% from 2021 to 2028 [38]. - The global market for new Diesel Particulate Filter (DPF) filters is expected to increase approximately 13% per year from 2017 to 2026 [43]. Product Development and Technology - LiqTech's Aqua Solution® technology offers high-flow capabilities at low pressure, reducing water and energy consumption, and has been successfully deployed in over 250 marine scrubber systems [25][34]. - LiqTech's silicon carbide membranes exhibit superior durability and chemical resistance, making them more effective than traditional filtration products, which positions the company favorably against larger competitors [30]. - LiqTech's diesel particulate filters (DPFs) are designed to handle higher soot loads, making them ideal for both on-road and off-road applications, with a lifespan comparable to the machinery they serve [22][23]. - The proprietary DPF technology allows compliance with current and future regulatory thresholds for black carbon reduction in the marine industry [42]. - The company is focused on developing new applications and technologies to penetrate existing markets, particularly in automotive, clean water, and industrial wastewater sectors [34]. - LiqTech's R&D efforts are directed towards creating innovative products that align with regulatory and environmental sustainability trends, enhancing their competitive edge [28]. Financial Performance - Revenue for the year ended December 31, 2022 was $15,982,438, a decrease of $2,291,004 or 13% compared to $18,273,442 in 2021 [160]. - Gross profit for the year ended December 31, 2022 was $567,144, representing a decrease of $1,009,002 or approximately 64% from $1,576,146 in 2021 [165]. - Total operating expenses for the year ended December 31, 2022 were $13,100,898, an increase of $837,428 or approximately 7% compared to $12,263,470 in 2021 [166]. - Net income/loss for the year ended December 31, 2022, was $(14,169,107), an increased loss of $3,042,147 compared to $(11,126,960) in 2021 [174]. - Cash used by operating activities for the year ended December 31, 2022, was $12,039,020, an increase of $4,835,177 from $7,203,843 in 2021 [186]. - The company incurred an accumulated deficit of $67,351,035 as of December 31, 2022 [183]. Operational Challenges - The European energy crisis has led to increased gas and electricity prices, negatively impacting profitability and competitive position in Europe [72]. - The uncertain macroeconomic environment, exacerbated by the Ukraine war and energy crisis, may adversely affect product demand and delivery [74]. - Supply chain constraints could affect the availability and cost of raw materials, impacting product supply and profitability [84]. - Increased interest rates and market volatility pose risks to refinancing and maintaining access to financing [93]. - The company has undergone changes to improve financial flexibility, but achieving break-even is dependent on external macroeconomic conditions [82]. Customer and Market Risks - The company's four largest customers accounted for approximately 31% of net sales in 2022, down from 37% in 2021, indicating a need for customer base diversification [79]. - Significant credit risk exists due to a concentration of accounts receivable with major customers, which may not meet financial obligations [80]. - Competition in the market is significant, with rivals potentially offering superior or more cost-effective products [105]. Intellectual Property and Legal Risks - The company relies on a combination of patent protection, trade secrets, and confidentiality agreements to protect its intellectual property rights, but these measures may not be sufficient in all cases [95]. - The patent landscape is uncertain, with potential challenges to the validity and enforceability of patents, particularly in countries outside the United States [96]. - The company may face difficulties in obtaining patents for important technologies in a timely manner, which could limit its competitive advantage [97]. - The company faces potential litigation related to intellectual property rights, which could divert resources and have a material adverse impact on its business [102]. Internal Controls and Compliance - The company has reported material weaknesses in its internal controls over financial reporting, which could impact investor confidence and stock price [112]. - The company has not regained compliance with the Nasdaq minimum bid price requirement of $1.00 per share as of March 22, 2023 [132]. - The company received a deficiency notification from Nasdaq on June 24, 2022, indicating non-compliance with the minimum bid price rule for 30 consecutive business days [131]. Future Outlook - Future growth may require additional funding through equity or debt, which may not be available on favorable terms [83]. - The company plans to expand and optimize production capacity within existing facilities, supported by partnerships across Europe, the Middle East, and Asia [49]. - The company plans to expand operations and production capacity, but may face challenges in managing growth effectively [86].

Financial Data and Key Metrics Changes - For the full year 2022, revenue was $16 million, a decrease of 13% compared to $18.3 million in 2021 [56] - The net loss for the year was $14.2 million, compared to a loss of $11.1 million in 2021, attributed to non-recurring restructuring costs and other factors [38] - Operating expenses for the year were $13.1 million, an increase from $12.3 million in 2021, but adjusted operating expenses were down 16% year-on-year [36][60] Business Line Data and Key Metrics Changes - System sales and related services revenue was $5.3 million, down 26% from $7.2 million the previous year [33] - EPS and ceramic membrane sales were $6.8 million, a decline of 5% from $7.2 million in 2021 [33] - Plastic revenues were $3.5 million, a slight decrease of 2% from $3.6 million [33] Market Data and Key Metrics Changes - The DPF business saw a 9.8% decrease last year, but a 3.8% increase is expected in Q4 2022 due to re-engagement with existing accounts [9] - The company anticipates a 70% increase in plastic sales in Q1 2023, driven by a large order in biological-based material development [14] Company Strategy and Development Direction - The company is focusing on recurring revenues and large system opportunities, with a clear corporate vision and commercial strategy [6] - Recent agreements with partners in the Middle East and North Africa aim to leverage capabilities in produced water treatment [19][20] - The company is also pursuing distribution partnerships to expand geographic reach and access key market verticals [25] Management's Comments on Operating Environment and Future Outlook - Management acknowledges ongoing challenges from energy-related concerns, higher interest rates, and inflation but remains optimistic about progress [31] - The company expects Q1 2023 revenue of approximately $4 million, representing an 11% increase from the previous year [58] - Management is committed to achieving a quarterly breakeven at around $7 million in revenue [43] Other Important Information - The company has reduced operating expenses by 37% year-on-year, evidencing cost reduction efforts [60] - Cash balance at the end of the year was $16.6 million, down $1 million from the previous quarter, indicating lower cash burn [62] Q&A Session Summary Question: Update on distribution agreements and their maturity - Management indicated that distribution agreements are progressing well, with expectations for results in the near term, particularly with Liquinex and NESR [67] Question: Pipeline development in major markets - Management confirmed a strong pipeline for larger systems, although these projects have longer cycles compared to recurring business [47] Question: Timing of revenue following orders - Management noted that revenue from recurring business is expected to ramp up in Q3 and Q4, while larger projects have more uncertainty regarding timing [49] Question: Pricing actions and their impact - Management confirmed that pricing improvements and cost reductions are expected to positively impact profitability in 2023 [51]

LiqTech International, Inc. (NASDAQ:LIQT) Q3 2022 Earnings Conference Call November 10, 2022 9:00 AM ET Company Participants Robert Blum – Lytham Partners Fei Chen – Chief Executive Officer Simon Stadil – Chief Financial Officer Conference Call Participants Robert Brown – Lake Street Capital Operator Good day and welcome to the LiqTech International Reports' Third Quarter of Fiscal Year 2022 Financial Results Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After toda ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C.20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the six months period ended June 30, 2022 or ☐ 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 ...

LiqTech International, Inc. (NASDAQ:LIQT) Q2 2022 Earnings Conference Call August 11, 2022 9:00 AM ET Company Participants Robert Blum - Lytham Partners Alex Buehler - Interim-CEO Simon Stadil - CFO Conference Call Participants Robert Brown - Lake Street Capital Markets Operator Good morning, afternoon, evening. And welcome to the LiqTech International Reports Second Quarter of Fiscal Year 2022 Financial Results Conference Call. [Operator Instructions]. Please note this event is being recorded. I would now ...