LiqTech(LIQT) - 2025 Q1 - Quarterly Report

Revenue and Profit - Revenue for Q1 2025 was $4,617,541, an increase of $382,197 or 9.0% compared to Q1 2024's $4,235,344, driven by liquid filtration systems and plastics sales[76] - Gross profit for Q1 2025 was $125,056, a decrease of $146,046 or 53.9% from $271,102 in Q1 2024, resulting in a gross profit margin of 2.7%[77] - Net loss for Q1 2025 was $2,358,342, a decrease of $29,953 or 1.3% from $2,388,295 in Q1 2024[83] Operating Expenses - Total operating expenses for Q1 2025 were $2,310,385, a slight decrease of $6,737 or 0.3% from $2,317,122 in Q1 2024[78] - Selling expenses increased by $200,437 or 38.7% to $718,016 in Q1 2025, primarily due to costs associated with a new joint venture[79] - General and administrative expenses decreased by $182,485 or 11.8% to $1,362,246 in Q1 2025, attributed to non-recurring costs in the prior period[80] - Research and development expenses decreased by $24,689 or 9.7% to $230,123 in Q1 2025, due to a reduction in R&D personnel[81] Cash Flow and Working Capital - Cash flows used in operating activities for Q1 2025 were $1,297,186, a favorable change of $659,516 compared to $1,956,702 in Q1 2024[89] - Cash flows provided from financing activities were $989,722 in Q1 2025, a favorable change of $1,999,159 compared to cash flows used of $1,009,437 in Q1 2024[91] - As of March 31, 2025, the company had cash of $10,447,432 and net working capital of $15,404,982, a decrease in net working capital of $331,827 from December 31, 2024[85] Revenue and Expense Recognition - Revenue recognition assessment impacts revenue and cost of sales[96] - Allowance for product warranties assessment impacts gross profit[96] - Collectability of accounts receivable assessment impacts operating expenses through bad debt adjustments[96] - Recoverability of long-lived assets assessment impacts gross profit or operating expenses through asset impairments[96] - Current and deferred income taxes recognition impacts provision for taxes[96] - Inventory valuation impacts gross profit[96] - Loss contingencies recognition impacts gross profit or operating expenses through loss contingency adjustments[96]