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LiqTech International, Inc. Reports 2017 Second Quarter ResultsBALLERUP, Denmark, Aug. 14, 2017 /PRNewswire/ -- LiqTech International, Inc. (NYSE AMERICAN: LIQT), a clean technology company that manufactures and markets highly specialized filtration technologies, announces today its financial results for the three and six months ended June 30, 2017. Financial highlights for the three months ended June 30, 2017 Net sales for the three months ended June 30, 2017 were $2.9 million compared to $4.0 million for the same period in 2016, representing a decrease of $1.1 million or 27.5%. The decrease in sales consisted of a decrease in sales of liquid filters and systems of $1.8 million offset by an increase in sales of DPFs of $0.7 million. Gross profit for the three months ended June 30, 2017 was $0.2 million compared to a gross profit of $1.1 million for same period in 2016, representing a decrease of $0.9 million or 81.8%. Included in gross profit is depreciation of $0.2 million and $0.3 million for the three months ended June 30, 2017 and 2016, respectively. Total operating expenses for the three months ended June 30, 2017 were $1.2 million representing a decrease of $0.2 million or 14.3%, compared to $1.4 million for the same period in 2016. Net loss for the three months ended June 30, 2017 was a loss of $1.2 million compared to a loss of $0.3 million for the comparable period in 2016, representing an increase in net loss of $0.9 million. Total net loss of $1.2 million for the period ended June 30, 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 $0.3 million. Financial highlights for the six months ended June 30, 2017 Net sales for the six months ended June 30, 2017 were $5.9 million compared to $7.6 million for the same period in 2016, representing a decrease of $1.7 million or 22.4%. The decrease in sales consisted of a decrease in sales of liquid filters and systems of $3.3 million offset by an increase in sales of DPFs of $1.6 million. Gross profit for the six months ended June 30, 2017 was $0.5 million compared to a gross profit of $1.9 million for same period in 2016, representing a decrease of $1.4 million or 73.7%. Included in gross profit is depreciation of $0.5 million and $0.7 million for the six months ended June 30, 2017 and 2016, respectively. Total operating expenses for the six months ended June 30, 2017 were $2.4 million representing a decrease of $0.7 million or 22.6%, compared to $3.1 million for the same period in 2016. Net loss for the six months ended June 30, 2017 was a loss of $2.0 million compared to a loss of $4.1 million for the comparable period in 2016, representing a decrease in net loss of $2.1 million or 51.2%. Cash on hand and restricted cash for the period ended June 30, 2017 was $1.3 million compared to $1.2 million for the year ended December 31, 2016, representing an increase of $0.1 million. Working capital for the period ended June 30, 2017 was $4.0 million compared to $3.5 million for the year ended December 31, 2016 representing an increase of $0.5 million or 14.3%. Total net loss of $2.0 million for the period ended June 30, 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 $0.6 million. Management Commentary In discussing the second quarter 2017 results, Mr. Sune Mathiesen, LiqTech CEO, remarked: "Our results for the second quarter were in line with our expectations. In the first half year of 2017 we have continued to invest significant resources in developing the marine scrubber market. We have been active in this industry for that past 3 years and following the IMO decision last year to implement a new lower global cap on sulphur emissions from international shipping, we now see that the pace of adoption of scrubber systems is picking up. To date we have delivered 7 systems for this challenging application – a number that we expect to be more than double in the second half year of 2017. We are encouraged by the rapid development in the marine scrubber market and we believe that our long-term commitment has positioned us well to be one of the market leaders for water treatment systems to this industry. We believe that we will see a further acceleration of the adoption of scrubber systems over the coming years, and we are ready to continue the ramp-up of our business to match the increased demand." "We will also continue our efforts to establish our technology in the swimming pool-, oil & gas-, mining-, drinking water- and aquaculture markets. The long term goal is to see the same adoption of our technology as we now see in the marine scrubber market. We believe that we will see orders for some of these industries in the second half year of 2017." "In May 2017 we completed a private placement of 7,300,000 new shares. The net proceeds of approximately $1.8 million has strengthened our balance sheet and allowed us to invest further in the acceleration of our marine scrubber business. This remains a focus area for us." "We believe that our narrowed focus and the development of standardized systems has proven to be the right choice, and we expect an improvement of revenue and earnings in the second half year of 2017." 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 14, 2017 and ending on September 4, 2017. To access the replay, please dial (877) 660-6853 or (201) 612-7415 and enter the conference id# 13662373.
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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, 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 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: LiqTech International View original content:http://www.prnewswire.com/news-releases/liqtech-international-inc-reports-2017-second-quarter-results-300503446.html SOURCE LiqTech International, Inc. 
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