BALLERUP, Denmark, March 27, 2013 /PRNewswire/ — LiqTech International, Inc. (OTCQX:LIQT) a clean technology company that manufactures and markets highly specialized filtration technologies, announced today its financial and operational results for fiscal 2012.
Financial highlights for the year ended December 31, 2012
- Net sales for the year ended December 31, 2012 were $16,921,838 compared to $21,192,177 for the year ended December 31, 2011, representing a decrease of $4,270,339 or 20 percent
- Gross profit for the year ended December 31, 2012 was $2,704,125 compared to $5,027,811, representing a decrease of $2,323,686
- Net income attributable to the Company for the year ended December 31, 2012 was a loss of $2,773,890 compared to a profit of $917,211 for the year ended December 31, 2011, representing a decrease of $3,691,101
- Cash on hand for the year ended December 31, 2012 was $3,873,338 compared to $1,033,057 for the year ended December 31, 2011, representing an increase of $2,840,281, and an increase of $163,271 from the cash of $3,710,067 at September 30, 2012
- Working capital for the year ended December 31, 2012 was $8,069,595 compared to $1,878,203 for the year ended December 31, 2011, an increase of $6,191,392
- Over 97% of the total net loss for 2012 was due to non-cash charges for depreciation and amortization, bad debt expense, and stock option expense
Operational highlights for 2012
- Raised net proceeds of $7.1 million in a common stock placement
- Opened offices in Singapore and joined with the Singapore Public Utility Board in a wastewater program
- Established sales in several new markets including Israel, Australia and India
- Signed an exclusivity agreement with Constructora Conconcreto for LiqTech’s SiC membrane technology for water filtration in the Oil and Gas industry in Colombia and Venezuela
- Signed a non-exclusive OEM supply agreement with Denovo in China for LiqTech’s SiC membrane technology. The OEM agreement includes progressive minimum order quantities for the years 2013-2016 for Denovo to maintain the supply agreement
2013 highlights to date
- Signed an exclusive multi-year, multi-million agreement with FMC Technologies for unconventional shale oil/gas applications
- Breakthrough in achieving liquid sterilization by using a LiqTech filter
- Developed a new silicon carbide membrane flat sheet product
- Developed a new silicon carbide membrane disc product
In discussing the 2012 results, Mr. Lasse Andreassen, CEO, stated, “LiqTech’s financial results reflect a continued pattern of neglect in enforcing mandates by the California Air Resources Board (“CARB”) where a projected 12,000 Diesel Particulate Filters (“DPF filters”) were due to be installed in 2012 with only a relatively small fraction of that amount actually installed.”
“While we still believe that the mandate will be enforced and we will continue to sell DPF filters to satisfy that ultimate demand, we are focusing on our disruptive Silicon Carbide membrane technology for liquids which represents a vast market opportunity to LiqTech.”
“We have discussed the lengthy testing period that our potential customers put our membranes through before reaching a decision; some take as long as several years, but the end result is worth the time. The recent announcement of our exclusive agreement with FMC Technologies for the use of our Silicon Carbide membranes in unconventional shale oil/gas applications entailed over a year of discussions and testing, but is just one example of the benefits of our patience and sales efforts.”
“When we first introduced our silicon carbide membrane technology to customers we met the usual resistance and skepticism that new disruptive technologies face but over the last several years the number of customers testing our membranes has grown from just a handful, but now numbers over 150. We have announced a number of those arrangements and agreements and we anticipate that number will continue to show significant growth.”
“We are extremely excited about the revenue opportunities that abound and expect the revenue potential from membrane sales to ramp up rapidly going forward. Consequently, in building for our future we faced some significant bumps in the road but we are more optimistic than ever about our future.”
-Financial charts follow-
ABOUT LIQTECH INTERNATIONAL, INC. – (OTCQX: LIQT)
LiqTech International, Inc., a Nevada corporation, is a clean technology company that for more than a decade has developed and provided state-of-the-art technologies for gas and liquid purification using ceramic silicon carbide filters, particularly, highly specialized filters for the control of soot exhaust particles from diesel engines and for liquid filtration. It also manufactures kiln furniture. Using nanotechnology, LiqTech develops products using proprietary silicon carbide technology. LiqTech’s products are based on unique silicon carbide membranes, which facilitate new applications and improve existing technologies. For more information, please visit www.liqtech.com.
Forward-Looking Statements This press release contains “forward-looking statements.” Although the forward-looking statements in this release reflect the good faith judgment of management, forward-looking statements are inherently subject to known and unknown risks and uncertainties that may cause actual results to be materially different from those discussed in these forward-looking statements. Readers are urged to carefully review and consider the various disclosures made by us in the our reports filed with the Securities and Exchange Commission, including the risk factors that attempt to advise interested parties of the risks that may affect our business, financial condition, results of operation and cash flows. If one or more of these risks or uncertainties materialize, or if the underlying assumptions prove incorrect, our actual results may vary materially from those expected or projected. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. We assume no obligation to update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this release.
Wolfe Axelrod Weinberger Associates, LLC
Stephen D. Axelrod, CFA/Adam Lowensteiner
(212) 370-4500, (212) 370-4505
SOURCE LiqTech International, Inc.