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LiqTech(LIQT) - 2024 Q4 - Earnings Call Transcript
LIQTLiqTech(LIQT)2025-03-28 15:35

Financial Data and Key Metrics Changes - Revenue for Q4 2024 was 3.4million,a373.4 million, a 37% sequential increase from Q3 2024, but down from 3.9 million in Q4 2023 [9][42] - The net loss for Q4 was 3.0million,comparedto3.0 million, compared to 3.2 million for the same period in 2023 [47] - Cash at the end of the quarter was 10.9million,withunderlyingcashdecreasingbyapproximately10.9 million, with underlying cash decreasing by approximately 2.4 million compared to the end of Q3 2024 [48] Business Line Data and Key Metrics Changes - Water treatment systems revenue was up nearly 750,000or108750,000 or 108% sequentially, totaling 1.4 million in Q4 2024 [10][42] - Ceramic membrane sales were 1.1million,flatcomparedtoQ32024anddownfrom1.1 million, flat compared to Q3 2024 and down from 1.4 million in Q4 2023 [42] - Simplastics revenue was 0.9million,up130.9 million, up 13% year-over-year and up 34% sequentially [33][42] Market Data and Key Metrics Changes - The company has ongoing pilot programs in various markets, including lithium brine production and microplastics removal, which are critical for long-term adoption [10][20] - The Middle East market has been slow in adoption, with a shift in focus towards the US market [22][24] Company Strategy and Development Direction - The company aims to lower its breakeven target to approximately 5.5 million to $6.0 million per quarter through cost reduction strategies [12][47] - A distribution agreement was established with Razorback Direct to commercialize water treatment solutions in the oil and gas sector [16] - The company is focusing on expanding its presence in the marine market through a joint venture in China [27][29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, particularly in the oil and gas industry, citing a record commercial order as a validation of their systems [12][19] - The CEO highlighted the importance of pilot programs as a pathway to larger commercial orders [51] - Management is aware of the need to preserve cash and drive the business towards achieving positive cash flows [52] Other Important Information - The company appointed David Kowalczuk as the new Chief Financial and Operating Officer, effective March 1, 2025 [34] - The company has implemented a comprehensive cost reduction strategy, including a 10% reduction in headcount and salaries for senior management [47] Q&A Session Summary Question: Q4 revenues were towards the lower end of expectations. Was there a deterioration since the last call? - Management clarified that timing differences on key projects affected the revenue, but they remained within guidance [56] Question: How will the large order in Q1 affect subsequent quarters? - Management expects contributions from other market segments in Q2, aiming for continued growth each quarter [58] Question: What is needed for a real take-off in revenues? - Management emphasized the importance of building a strong sales pipeline through distribution agreements and ongoing pilot programs [60] Question: Why would customers choose the company's oil and gas treatment technology over competitors? - The company offers stable treatment and high-quality water reinjection and reuse, which competitors cannot provide [67] Question: What is the status of pool sales and the marine market? - Management acknowledged disappointing pool sales due to a weak pipeline in 2023 but is optimistic about future growth [78] - The company is conducting pilot testing in China, with expectations for commercial sales by the end of Q2 [82]