Revenue Performance - For the three months ended March 31, 2022, total revenue was $3,637,236, a decrease of 9% compared to $3,997,877 for the same period in 2021[51]. - Total consolidated revenue for the three months ended March 31, 2022, was $3,637,236, a decrease of $360,641 or 9% compared to $3,997,877 in 2021[121]. - The sales by product line indicated that diesel particulate filters accounted for 52% of total revenue, while liquid filters and systems contributed 16%[52]. Geographic Distribution - Revenue distribution by geographical region showed Europe at 73%, Asia at 22%, North America at 4%, and Australia at 1% for Q1 2022[51]. Financial Position - As of March 31, 2022, total consolidated assets were $40,431,224, a decrease from $45,054,692 as of December 31, 2021[111]. - The company held $1,899,255 in restricted cash as of March 31, 2022, down from $2,125,695 at the end of 2021[36]. - As of March 31, 2022, the company had cash of $11,227,061 and net working capital of $5,158,696, a decrease of $6,040,563 compared to December 31, 2021[131]. Loss and Expenses - As of March 31, 2022, the company recognized a net loss of $3,746,424 compared to a net loss of $2,459,429 for the same period in 2021[91]. - The net loss for the three months ended March 31, 2022, was $(3,746,424), an increase of $1,286,995 or 52.3% compared to $(2,459,429) in 2021[127]. - Total operating expenses for the three months ended March 31, 2022, were $3,579,202, an increase of $657,427 or 22.5% compared to $2,921,775 in 2021[123]. Research and Development - Research and development costs for the three-month period ended March 31, 2022, were $602,737, up 38% from $437,607 in the same period of 2021[59]. - Research and development expenses for the three months ended March 31, 2022, were $602,737, an increase of $165,130 or 38% compared to $437,607 in 2021[125]. Cash Flow - Cash used in operating activities for the three months ended March 31, 2022 was $(5,034,944), representing an increase of $3,731,054 compared to $(1,303,890) for the same period in 2021[138]. - Net cash used in investing activities was $(183,031) for the three months ended March 31, 2022, compared to $(414,875) for the same period in 2021, indicating an increase of $231,844[139]. - Cash used from financing activities was $(931,807) for the three months ended March 31, 2022, compared to $(101,192) for the same period in 2021, representing an increase of $830,615[140]. Liabilities and Debt - Operating lease liabilities totaled $6,744,609 as of March 31, 2022, down from $7,000,608 as of December 31, 2021, indicating a decrease of 3.7%[74]. - The company issued a $15.0 million principal amount senior convertible note, with a maturity date of October 1, 2023, and an interest rate of 5% per annum[76][78]. - The company recognized interest of $187,500 for the convertible note for the three months ended March 31, 2022, compared to $0 in 2021[81]. Inventory and Assets - Net inventory increased to $5,809,602 as of March 31, 2022, compared to $5,421,027 as of December 31, 2021, reflecting a rise of 7.2%[71]. - The allowance for doubtful accounts decreased from $409,076 at the end of 2021 to $312,677 by March 31, 2022, reflecting a reduction in bad debt expense[39]. - Contract assets increased to $2,437,924 as of March 31, 2022, from $1,906,510 as of December 31, 2021, representing a growth of 28%[58]. Operational Changes - In April 2022, the company re-aligned its corporate management structure, resulting in a reduction of headcount and labor costs by approximately 25%[112]. - The company is planning to establish a joint venture to supply and operate water treatment systems for oil and gas producers in the Middle East, holding 49% of the shares[82]. Warranty and Claims - The balance of warranty liabilities decreased from $962,313 as of December 31, 2021, to $942,349 as of March 31, 2022[88]. - The company settled a claim for DKK 400,000 ($59,700) related to a lawsuit with a former supplier during the period ending March 31, 2022[84].
LiqTech(LIQT) - 2022 Q1 - Quarterly Report