BALLERUP, Denmark, Aug. 13, 2015 /PRNewswire/ -- LiqTech International, Inc. (NYSE MKT: LIQT), a clean technology company that manufactures and markets highly specialized filtration products and systems, announced today its financial results for the three and six months ended June 30, 2015.

Highlights of the second quarter

• On April 14, 2015 the Company announced the appointment of Dr. Rengarajan Ramesh to serve on the board of directors.
• On June 8, 2015 the Company signed a three-year agent agreement with a Chinese company to promote and sell the Company's Diesel Particulate Filters (DPF) in the Chinese market. At the same time, the Company received its first purchase order for $814,000 from a large Chinese OEM and retrofit customer.
• On June 15, 2015 the Company signed a framework agreement with a new OEM customer, APATEQ S.A., for the delivery of UF (Ultra Fine) Filtration membranes and housing. The annual revenue under this agreement is estimated to be approximately $1 million. At the same time, the Company also received its first purchase order for $165,000.
• On June 17, 2015 the Company received a $6.1 million system order from an international mining company for the removal of heavy metals from waste water.
• On June 18, 2015 the Company received an $830,000 purchase order for two systems for treatment of wastewater based on the Company's SiC membranes.

Financial highlights for the three months ended June 30, 2015

• Net sales for the three months ended June 30, 2015 were $1.70 million, compared to $3.97 million for the same period in 2014, representing a decrease of $2.27 million or 57.2%. The decrease in total sales was primarily driven by a decrease in sales of DPFs of $1.11 million and a decrease in sales of liquid filters and systems of $1.18 million.
• Gross profit for the three months ended June 30, 2015 was a negative $0.56 million compared to a positive $0.85 million in the same period of 2014, representing a decrease of $1.41 million. Gross profit margin was a negative 32.8% compared to a positive 21.4% in the same period of the preceding year.
• Net loss attributable to LiqTech for the three months ended June 30, 2015 was $1.79 million, compared to a net loss of $0.76 million in the same period last year, representing an increase in the net loss of $1.03 million.

Financial highlights for the six months ended June 30, 2015

• Net sales for the six months ended June 30, 2015 were $3.81 million compared to $7.17 million for the same period of 2014, representing a decrease of $3.36 million or 46.9%. The decrease in sales was driven primarily by a decrease in demand for DPFs caused by non-enforcement of mandates and market activity in general. The decrease in demand for liquid filters is due to postponements in delivery of incoming orders.
• Gross profit for the six months ended June 30, 2015 was a loss of $0.61 million compared to $1.41 million for the same period of 2014, representing a decrease of $2.02 million or 143%. The decrease in gross profit was due to low sales activity compared to our fixed cost of goods sold. Included in the gross profit is depreciation of $0.69 million and $0.87 million for the six months ended June 30, 2015 and 2014, respectively.
• At June 30, 2015, the Company had cash and restricted cash of $3.10 million and working capital of $6.54 million.

Management Commentary

As noted previously, the first and second quarter results were as expected, disappointing.

The orders resulting from the focused marketing strategy we began implementing in the fall of 2014 have significantly increased our order book. The first quarter order inflow of $5.8 million was the highest in any quarter in the history of the Company. The second quarter the order inflow of $9.1 million set an additional record for the Company. We are pleased to see these early stage results from our focused strategy.

In the second quarter we announced the largest order in the history of the Company, a $6.1 million order for the removal of heavy metals from industrial waste water from a mining application. We believe that we have a well proven and robust technology for the removal of heavy metals from applications within the mining industry, wet scrubber systems in power plants and marine applications and from industrial waste water. We have seen an increased environmental focus around the world and we believe we will see further orders for these applications in the near future.

In the second quarter we also announced a three-year agent agreement and the first order for our Diesel Particulate Filters (DPF) for a Chinese OEM and retrofit customer. This order marked a break-through for us on the attractive Chinese market and we expect to see a high level of business from the Chinese market for the rest of 2015 and 2016.

With the significantly increased order intake, we remain confident that 2015 will prove to be a year of improvement.

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 August 13, 2015 and ending on August 27, 2015. To access the replay, please dial (877) 660-6853 and enter the conference id# 13616802. The access number for the replay for international callers is (201) 612-7415.

Callers from Denmark can dial in using the following numbers:

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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 StatementsThis 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, LLCStephen D. Axelrod, CFA/Don Weinberger (212) 370-4500, (212) 370-4505 fax [email protected][email protected]

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SOURCE LiqTech International, Inc.