Financial Data and Key Metrics Changes - Revenue for Q4 2024 was $3.4 million, a 37% sequential increase from Q3 2024, but down from $3.9 million in Q4 2023 [9][42] - The net loss for Q4 2024 was $3.0 million, compared to $3.2 million for the same period in 2023 [47] - Cash at the end of Q4 2024 was $10.9 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 $750,000 or 108% sequentially, totaling $1.4 million in Q4 2024 [10][42] - Ceramic membrane sales were $1.1 million, flat compared to Q3 2024 and down from $1.4 million in Q4 2023 [42] - Simplastics revenue was $0.9 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 petrochemical microplastics removal, which are critical for future growth [10][20] - The Middle East market has been slow in adoption, while the focus is increasingly directed towards the US market [22][23] 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 significant commercial order from Razorback Direct for PureFlow mobile units is expected to drive revenue growth in Q1 2025 [11][50] - The establishment of a joint venture in China aims to expand the company's focus within the marine market [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 the successful execution of pilot programs leading to commercial orders [19][50] - The company is focused on building a strong sales pipeline in swimming pool systems and marine systems to drive revenue growth [60][61] Other Important Information - The company has implemented a cost reduction strategy, including a 10% reduction in headcount and senior management salaries [12][47] - The appointment of David Kowalczuk as the new Chief Financial and Operating Officer is expected to enhance the company's growth and profitability [34][36] 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 led to being on the lower end of guidance, but they remained within the expected range [56] Question: How will the new oil and gas PureFlow systems affect subsequent quarters? - Management indicated that while Q1 will see significant revenue from the PureFlow system, they expect contributions from other market segments in Q2 [58] Question: What is needed for a real take-off in revenues for LiqTech? - Management emphasized the importance of building a strong sales pipeline through distribution agreements and pilot programs [60] Question: Why would a customer choose LiqTech's oil and gas treatment technology over competitors? - Management highlighted that LiqTech's technology offers stable treatment and the ability for water reinjection and reuse, which competitors cannot provide [66][67] Question: What is the opportunity in the marine market following the supply approval from WinGD? - Management stated that pilot testing is underway, and they expect to recognize revenue from commercial sales by the end of Q2 [82][84]
LiqTech(LIQT) - 2024 Q4 - Earnings Call Transcript