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LiqTech International, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing a decrease in revenue to $2,478,221 from $5,070,446 in the same quarter the previous year. This decrease is attributed to reduced deliveries of ceramic membranes, diesel particulate filters (DPFs), liquid filtration systems, and aftermarket sales.
Gross loss for the quarter was $209,533, compared to a gross profit of $948,565 in the previous year. The decline is primarily due to a reduction in revenue and an unfavorable sales mix.
Selling expenses decreased to $610,713 from $965,039, attributed to a decrease in executive officers and reductions in travel costs and external sales consultancy services.
General and administrative expenses increased to $1,491,366 from $1,253,779, due to new positions in supply chain and project management, increased legal expenses, and one-time expenses for relocating the plastics production facility.
Research and development expenses decreased to $278,361 from $428,600, primarily due to a reduction in external costs and a decrease in the average number of employees engaged in research and development.
Net loss for the quarter was $2,840,526, up from $1,414,230 in the previous year. The increase in net loss is attributed to the cumulative effect of reduced revenue and increased operating expenses.
The company reported cash and cash equivalents of $4,535,266 as of September 30, 2024, with a net working capital of $9,963,511.
LiqTech has incurred significant recent losses, raising substantial doubt about its ability to continue as a going concern. The company is exploring various alternatives, including obtaining debt or equity financings.
The filing also details a securities purchase agreement entered into on September 27, 2024, to issue and sell common stock and warrants for gross proceeds of up to $10 million in two tranches.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the LiqTech International Inc. quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.