LiqTech International Inc. Reports 2014 Fiscal Year-end Results and Future Outlook

-- Management to Conduct Conference Call and WEBCAST today, March 25 at 11am EDT --

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Mar 25, 2015, 09:00 ET

BALLERUP, Denmark, March 25, 2015 /PRNewswire/ -- LiqTech International, Inc. (NYSE MKT: LIQT), a clean technology company that manufactures and markets highly specialized filtration technologies, announced today its financial and operational results for fiscal 2014.

Financial highlights for the year ended December 31, 2014

Net sales for the year ended December 31, 2014 were $14.56 million compared to $12.83 million for the year ended December 31, 2013, representing an increase of $1.73 million or 13.5 percent.
Gross profit for the year ended December 31, 2014 was $2.10 million compared to $1.31 million for the year ended December 31, 2013, representing an increase of $0.79 million or 60.3 percent.
Net loss attributable to the Company for the year ended December 31, 2014 was a loss of $3.07 million compared to a loss of $4.83 million for the year ended December 31, 2013, representing an improvement of $1.76 million or 36.4 percent.
Cash on hand and restricted cash for the year ended December 31, 2014 was $6.07 million compared to $4.88 million for the year ended December 31, 2013, representing an increase of $1.19 million or 24.4 percent.
Working capital for the year ended December 31, 2014 was $10.57 million compared to $7.69 million for the year ended December 31, 2013, an increase of $2.88 million or 37.5 percent.
Total net loss for 2014 includes non-cash charges for depreciation and amortization, bad debt expense, stock compensation expense and other one-time charges for a total of approx. $2.65 million.

Company highlights for 2014

In July 2014, the Company completed the acquisition of Provital Solutions A/S, a Danish company that provides high-quality water solutions for the pool market and systems integration capabilities for other fluid related applications.
In July 2014, the Company raised net proceeds of approximately USD $10.8 million from a registered firm commitment underwritten public offering of 8,000,000 shares at $1.50 per share.

Operational highlights for 2014

In March 2014, the Company announced that based on new developments in their membrane, the Company had received a purchase order for approximately USD $300,000 for a prototype system technology to concentrate an algae stream as part of the harvesting process.
In March 2014, the Company received a new order for Diesel Particulate Filters ("DPF") in the amount of USD $450,000 from Emigreen B.V., a firm with expertise in the emission control of industrial combustion engines.
In May 2014, the Company announced the appointment of Michael Barish, a highly qualified investment professional, to the Board of Directors.
In May 2014, the Company announced the development of a small and compact Flat Sheet Membrane filtration unit for pre-Reverse Osmosis and drinking water purposes.
In June 2014, the Company received a USD $275,000 order from a Middle East customer for various upstream Produced Water applications.
In July 2014, a European customer placed a USD $200,000 order for the removal of heavy metals from the flue gas effluent at a German power plant.
In July 2014, a Danish customer placed a USD $350,000 Silicon Carbide (SiC) membrane system order to filter sea water from a Danish fish farm for its recirculated aquaculture system.
In October 2014, the joint efforts of LiqTech and Provital Solutions resulted in a USD $200,000 order from a Danish power plant customer to remove heavy metals from a heat recovery process.
In October, 2014 the Company had the honor of ringing the bell for the opening of the New York Stock Exchange.
In November, 2014 Provital Solutions, the Company's subsidiary, announced that it had developed a new LED-based Deep UV water disinfection system.

2015 highlights to date

In January, 2015, the Company announced that it had received a USD $2.4 million purchase order for a system based on the Company's SiC membrane technology which is expected to be delivered this year. The order, from LiqTech's preferred partner, Nakasawa Mining and Energy Limited, is part of an enhanced oil recovery (EOR) project.
In the first quarter of 2015 additional orders were received for various SiC membrane applications including a USD $350,000 order for the removal of heavy metals from a marine scrubber water application and followed by a $660,000 follow-on order from the same customer; a follow-on order for USD $130,000 from a European customer that first installed a system in the fall of 2014 and; a recent pilot order from a leading pump manufacturer, Grundfos, for a newly developed in-well situated ground water treatment system.

In discussing the 2014 results, Mr. Sune Mathiesen, CEO, remarked:

"Our revenue and net earnings for the fourth quarter 2014 were less than anticipated and not in line with the progress we made in the third quarter. The shortfall was primarily a result of the delayed implementation of several significant projects in the swimming pool and oil markets, which we expected to realize in the fourth quarter - 2014 but were delayed for reasons beyond our control.

"The shortfall was also the result of decreasing prices in the oil market which led us to re-evaluate our marketing strategy and diversify our sales efforts into other end markets, as discussed in previous earnings calls.

"In the first quarter of 2015 additional orders were received for various SiC membrane applications including a USD $2.4 million purchase order for a system based on the Company's SiC membrane technology, a USD $350,000 order for the removal of heavy metals from a marine scrubber water application and followed by a $660,000 follow-on order from the same customer; a follow-on order for USD $130,000 from a European customer that first installed a system in the fall of 2014 and; a recent pilot order from a leading pump manufacturer, Grundfos, for a newly developed in-well situated ground water treatment system. These orders are not expected to materially benefit Q1 2015 revenues."

LiqTech's management team will conduct a conference call and WEBCAST presentation at 11:00 a.m. EDT to discuss the financial results and will be followed by an open Q&A session.

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 March 25, 2015 and ending on April 8, 2015. To access the replay, please dial (877) 660-6853 and enter the conference id# 13604621. The access number for the replay for international callers is (201) 612-7415 (conference id# 13604621). To join the WEBCAST presentation, please click on the following link:

http://www.investorcalendar.com/IC/CEPage.asp?ID=173751

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, Provital Solutions 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.

CONTACT:
Wolfe Axelrod Weinberger Associates, LLC
Stephen D. Axelrod, CFA/Don Weinberger
(212) 370-4500, (212) 370-4505 fax
[email protected]
[email protected]

-Financial charts follow-

LIQTECH INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

	As of		As of
	December 31,		December 31,
	2014		2013
Current Assets:
Cash	$	5,853,752	$	4,884,275
Restricted cash balances		218,879		-
Accounts receivable, net		1,992,206		2,341,070
Other receivables		344,331		231,998
Cost in excess of billing		1,172,658		406,997
Inventories		4,914,866		4,258,606
Prepaid expenses		55,990		12,021
Current deferred tax asset		109,637		104,143

Total Current Assets		14,662,319		12,239,110

Property and Equipment, net accumulated depreciation		4,524,386		5,829,404

Other Assets:
Investments at costs		6,085		6,882
Long term deferred tax asset		3,496,459		1,863,349
Goodwill		8,460,512		-
Other intangible assets		16,708		24,687
Deposits		259,070		271,916

Total Other Assets		12,238,834		2,166,834

Total Assets	$	31,425,539	$	20,235,348

LIQTECH INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

	As of		As of
	December 31,		December 31,
	2014		2013
Current Liabilities:
Current portion of capital lease obligations	$	170,187	$	208,419
Accounts payable		2,336,942		1,586,962
Accrued expenses		1,439,735		1,440,522
Billing in excess of cost		-		96,104
Accrued income taxes payable		570		2,000
Deferred revenue / customers deposits		144,476		1,212,434

Total Current Liabilities		4,091,910		4,546,441

Long-term capital lease obligations, less current portion		368,614		554,360

Total Long-Term Liabilities		368,614		554,360

Total Liabilities		4,460,524		5,100,801

Commitment and Contingencies See Note 10		-		-

Stockholders' Equity:
Common stock; par value $0,001, 100,000,000 shares authorized, 39,404,782 and 27,212,500 shares issued and outstanding at December 31, 2014 and December 31, 2013, respectively		39,405		27,213
Additional paid-in capital		35,632,410		18,700,574
Accumulated deficit		(5,382,852)		(2,316,784)
Deferred compensation		(504,748)		(1,008,450)
Other comprehensive income, net		(2,835,917)		(292,565)
Non-controlled interest in subsidiaries		16,717		24,559

Total Stockholders' Equity		26,965,015		15,134,547

Total Liabilities and Stockholders' Equity	$	31,425,539	$	20,235,348

LIQTECH INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS

	For the Years Ended
	December 31,
	2014		2013
Net Sales	$	14,561,192	$	12,826,168

Cost of Goods Sold		12,463,949		11,514,463

Gross Profit		2,097,243		1,311,705

Operating Expenses:
Selling expenses		3,360,566		2,650,000
General and administrative expenses		3,019,094		3,064,610
Non-cash compensation expenses		573,029		1,316,826
Research and development expenses		336,066		499,972

Total Operating Expense		7,288,755		7,531,408

Loss from Operations		(5,191,512)		(6,219,703)

Other Income (Expense)
Interest expense		(53,379)		(50,945)
Loss on investments		(815)		(199,811)
Gain on currency transactions		450,147		7,638
Other Income (Expense)		10,511		4,671

Total Other Income (Expense)		406,464		(238,447)

Loss Before Income Taxes		(4,785,048)		(6,458,150)

Income Tax Benefit		(1,702,551)		(1,611,561)

Net Loss		(3,082,497)		(4,846,589)

Less Net Loss Attributable To Non-Controlled Interests in Subsidiaries		(16,429)		(19,112)

Net Loss Attributable To LiqTech	$	(3,066,068)	$	(4,827,477)

Basic Loss Per Share	$	(0.09)	$	(0.19)

Weighted Average Common Shares Outstanding		32,398,941		24,989,262

Diluted Loss Per Share	$	(0.09)	$	(0.19)

Weighted Average Common Shares Outstanding Assuming Dilution		32,398,941		24,989,262

LIQTECH INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME

	For the Years Ended
	December 31,
	2014		2013

Net Loss		(3,082,497)		(4,846,589)

Currency Translation, Net of Taxes		(2,543,352)		250,241

Other Comprehensive Loss	$	(5,625,849)	$	(4,596,348)

Comprehensive Income (Loss) Attributable To Non-controlling Interest in Subsidiaries		(2,628)		1,294

Comprehensive Loss Attributable To LiqTech International Inc.	$	(5,623,221)	$	(4,597,642)