LiqTech International, Inc. Reports 2017 First Quarter Results

BALLERUP, Denmark, May 15, 2017 /PRNewswire/ -- LiqTech International, Inc. (NYSE MKT: LIQT), a clean technology company that manufactures and markets highly specialized filtration technologies, announces today its financial results for the three months ended March 31, 2017.

Financial highlights for the three months ended March 31, 2017

Net sales for the three months ended March 31, 2017 were $3.0 million compared to $3.6 million for the same period in 2016, representing a decrease of $0.6 million or 16.7%.

The decrease in sales consisted of a decrease in sales of liquid filters and systems of $1.5 million offset by an increase in sales of DPFs of $0.9 million.

Gross profit for the three months ended March 31, 2017 was $0.3 million compared to a gross profit of $0.7 million for same period in 2016, representing a decrease of $0.4 million or 57.1%.

Included in gross profit is depreciation of $0.3 million and $0.4 million for the three months ended March 31, 2017 and 2016, respectively.

Total operating expenses for the three months ended March 31, 2017 were $1.3 million representing a decrease of $0.4 million or 23.5%, compared to $1.7 million for the same period in 2016.

Net loss attributable to the Company for the three months ended March 31, 2017 was a loss of $0.8 million compared to a loss of $3.8 million for the comparable period in 2016, representing a decrease in net loss of $3.0 million.

Total net loss of $0.8 million for the period ended March 31, 2017 includes non-cash charges for depreciation and amortization, bad debt expense, reserve for obsolete inventory and stock compensation expense charges for a total of approximately $0.4 million.

Cash on hand and restricted cash for the period ended March 31, 2017 was $0.5 million compared to $1.2 million for the year ended December 31, 2016, representing a decrease of $0.7 million.

Working capital for the period ended March 31, 2017 was $2.7 million compared to $3.5 million for the year ended December 31, 2016 representing a decrease of $0.8 million.

Management Commentary

In discussing the first quarter 2017 results, Mr. Sune Mathiesen, LiqTech CEO, remarked:

"Our results for the first quarter were in line with our expectations. We continue to invest significant resources in the development of the marine scrubber market. We have announced several orders for this industry this year, and we continue to form new relationships to manufacturers of marine scrubbers. We expect that our efforts will lead to an acceleration of our business later this year."

"We have invested significant resources in developing a standardized system for power plant applications. Over the past quarters our investments have been rewarded and we have announced several orders for this industry. We are encouraged by this development and we are optimistic that we will see further orders."

"We continue to use our large-scale references within the oil industry for further specification of our technology in new projects. We are in the process of testing our technology with one of China's largest operators in the hydraulic fracturing industry and we are optimistic that this could be a breakthrough for our technology in the Chinese oil industry."

"In April we announced that Hunan Yonker Investment Group had submitted their final application for a $4 million investment in LiqTech to the National Development and Reform Commission (NDRC). NDRC is still reviewing and verifying the submitted documents. To further strengthen our balance sheet we have decided to do a private placement of 6,300,000 new shares that we announced earlier today. The private placement was made directly by LiqTech and we plan to use the net proceeds of approximately $1.6 million for further acceleration of our business in the marine scrubber industry."

Conference Call Details

Interested parties may participate in the call by dialing (877) 407-8029 or (201) 689-8029. It is recommended to dial in approximately 10 to 15 minutes prior to the scheduled start time. The conference call will also be available on replay starting at 3:00 p.m. EDT on May 15, 2017 and ending on June 5, 2017. To access the replay, please dial (877) 660-6853 or (201) 612-7415 and enter the conference id# 13662373.

Callers from Denmark can dial in using the following numbers:

Denmark (fixed) ATT                 80 25 21 64
Denmark (mobile) ATT              80 25 19 17

CONTACT:                                                                                       

LiqTech International 
Aldo Petersen, Chairman,
+45 2390 0000, ap@liqtech.com 
Sune Mathiesen, CEO
+45 5197 0908, sma@liqtech.com

Financial Tables Follow

ABOUT LIQTECH INTERNATIONAL, INC.

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. 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. In particular, LiqTech Systems A/S (www.provital.dk), the Company's subsidiary, has developed a new standard of water filtration technology to meet the ever increasing demand for higher water quality. By incorporating LiqTech's SiC liquid membrane technology with its longstanding systems design experience and capabilities it offers solutions to the most difficult water pollution problem.

For more information, please visit www.liqtech.com 
Follow LiqTech on LinkedIn: http://www.linkedin.com/company/liqtech-international 
Follow LiqTech on Twitter: https://twitter.com/LiqTech

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.

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SOURCE LiqTech International, Inc.