What changed in this filing

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Item 1. Business

2025-03-28 compared with 2024-03-22 · 62 added, 59 removed, 170 unchanged (42% of the section changed)

LiqTech International, Inc.

is a clean technology company that provides state-of-the-art gas and liquid purification products by manufacturing ceramic silicon carbide filters and membranes as well as developing industry-leading and fully automated filtration solutions and systems.

is a clean technology company that manufactures and markets highly specialized filtration products and systems.

For more than two decades, we have developed and manufactured products of re-crystallized silicon carbide.

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At present, we conduct our operations in the Kingdom of Denmark.

Our Danish operations are located in the Copenhagen area, Hobro, and Aarhus.

We manufacture and sell a broad range of systems and products based on the application of our ceramic filters and membranes for the filtration of liquids and gases within a range of uses, such as industrial wastewater, oil & gas, commercial pool, non-road machinery, marine, chemicals/petrochemicals and other industrial applications.

Our Danish operations are located in the Copenhagen area and Hobro.

We manufacture and sell a broad range of systems and products based on the application of our ceramic filters and membranes for the filtration of liquids and gases within a range of uses, such as industrial wastewater, oil & gas, commercial pool, road & non-road machinery, marine, chemicals/petrochemicals and other industrial applications.

We also provide engineered plastic parts and products for various internal and external industrial applications in the food & beverage and pharmaceutical industries.

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Silicon Carbide (SiC) ceramic membranes, a unique patented technology designed as a tubular membrane.

It utilizes a crossflow structure to handle high concentrations of suspended solids found in produced water from the oil & gas and chemical industries, wastewater from industrial processes and manure filtration, and other applications.

It offers consistent removal of oil and suspended solids at high throughput rates regardless of feed conditions.

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Our current focus is to strengthen our position within certain industrial applications such as difficult industrial water streams and hydrocarbon production-derived contaminated water, which we refer to herein as “produced water”.

Furthermore, we remain focused on our legacy segments within marine scrubber wastewater, pool, metal & mining, and other energy applications.

Furthermore, we remain focused on segments within marine scrubber wastewater, pool, metal & mining, microplastics removal, and other applications.

Our filtration systems have been used in the following applications by our clients:

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Our systems can be used for the filtration of produced water, which is a byproduct of oil & gas production.

The amount of produced water varies from 0.1 to 10 times the amount of oil produced.

We have an installation with a major international oil & gas company operating with stable performance.

Our solution is market-proven and applicable for onshore and offshore operations.

Our silicon carbide membrane technology can be deployed in filtration systems related to monoethylene glycol ("MEG") recovery within the oil & gas industry.

MEG is widely used by oil & gas producers in wellheads and pipelines to prevent hydrate formation.

In deep-water, offshore gas production facilities, where the exposure to lower temperatures in subsea pipelines is common, MEG is used for hydrate inhibition.

Together with our clients, we have demonstrated the performance of SiC membrane technology and validated significant performance improvements to the MEG regeneration process when compared to other membrane technologies.

The amount of produced water varies from 0.1 to 10 times the amount of oil or gas produced.

We have today three installations with international oil & gas companies both in the US and Middle East, all of which are operating with stable performance.

Oil & Gas companies require water treatment units with high capacity and efficiency.

In 2024, we developed the PureFlow™ container solution, designed to operate cost-effectively at capacities starting from 10,000 barrels per day.

Marine Scrubber Wastewater:

We supply water filtration systems for marine scrubber systems that may be deployed on ships to reduce sulfur emissions stemming from heavy fuel oil (HFO) operations, allowing vessels to comply with the International Maritime Organization (IMO) 2020 sulfur cap.

To date, more than 170 water treatment systems have been installed, with orders from European and Asian scrubber technology providers, shipyards, and ship owners.

Recently, we are evaluating new opportunities for water treatment units in dual-fuel engine exhaust gas recovery.

Sustainability is getting more and more attention in the shipping industry.

Most commercial new vessels are built with dual-fuel engines.

This type of engine requires efficient and reliable water treatment systems for exhaust gas recirculation, for which it is necessary for engine combustion efficiency.

Based on our many commercially operated water treatment systems, we have developed a special water treatment solution for this new application.

We are actively repositioning our WTU to match the emerging new opportunity for exhaust gas recirculation in dual-fuel engines.

This new market development supports the energy transition for the marine industry and will be a major trend in the coming years.

Today, more than 80% of commercial ships are manufactured in China.

To accelerate our entry into the emerging dual-fuel engine market, we established a joint venture in Nantong, China, in December 2024.

Industrial Applications:

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Furthermore, our systems have been deployed successfully to reduce OPEX and enhance product quality in chemicals/petrochemicals applications.

In 2024, we piloted a new application area for microplastics removal for a chemical/petrochemical company.

Highly Flexible & Innovative Plastic Manufacturing

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Our Competitive Strengths

Our products and systems compete with other filtration technologies that are made of ceramic, aluminum oxide and polymeric materials.

Most of our competitors are large industrial companies;

however, we believe our patented technology allows us to produce high-quality products that provide an advantage over many of our direct and, in many cases, larger competitors.

We intend to continue investing in R&D with the aim of developing new technologies and improving our existing products to strengthen our competitive advantages, retaining our existing customers, and acquiring new customers.

Our products and systems compete with other filtration technologies made from ceramic, aluminum oxide, and polymeric materials.

While most of our competitors are large industrial companies, we hold a unique position by combining proprietary membrane technology with extensive system and application expertise.

We believe our patented technology as well as our in-depth application knowledge allow us to offer reliable products that provide an advantage over many of our direct and, in many cases, larger competitors.

We intend to continue investing in R&D with the aim of developing new technologies and improving our existing products to strengthen our competitive advantages, retain our existing customers, and acquire new customers.

We believe the following strengths underpin our ability to increase revenue and profitability:

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Broad Application of LiqTech Membranes:

Our membranes can be applied in a variety of applications, including the filtration of industrial wastewater, separation of metals from liquids in industrial processes, marine scrubber wastewater, chemicals and produced water within oil & gas, oil emulsion separation, bacteria removal, commercial swimming pool water treatment, food and beverages, chemicals/petrochemicals, and other applications.

Our membranes can be applied in a variety of applications, including the filtration of industrial wastewater, separation of metals from liquids in industrial processes, marine scrubber wastewater, chemicals and produced water within oil & gas, oil emulsion separation, bacteria removal, commercial swimming pool water treatment, food and beverage production, chemicals/petrochemicals processing, and other applications.

Marketing and Manufacturing in Key Markets and Expanding to Other Markets:

While production is centered in Denmark, we have distribution and sales activities across multiple jurisdictions.

We also sell our products through distributors and agents in many other countries and regions such as China, Korea, Spain, UK, France, Middle East, Singapore, Australia and the U.S.

We also sell our products through distributors and agents in many other countries and regions such as China, Korea, Spain, UK, France, Greece, Middle East, Singapore, Australia, and the U.S.

Moreover, we have established customer relationships in more than 25 countries.

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Our management team has deep experience in the clean technology and filtration industries and drives growth through developing new applications and technologies and cultivating relationships with customers.

Our strategy is to leverage our core competencies in material science, advanced filtration, and systems integration, creating differentiated products with compelling value propositions to penetrate attractive end markets with regulatory and ESG tailwinds.

Our strategy is to leverage our core competencies in material science, advanced filtration, systems integration, and application knowledge, creating differentiated products with compelling value propositions to penetrate attractive end markets with regulatory tailwinds.

Essential imperatives associated with our strategy include the following:

Develop and reinforce new products and applications to provide clean water and reduce pollution.

We currently provide water filtration systems for commercial pool owners, scrubber technology providers, shipowners, and ship operators as well as tailored filtration systems for oil & gas operators and services companies.

We are expanding our range of products to better leverage existing customer relationships and develop new relationships within the oil & gas, marine, chemical, and other industries.

Better penetration of existing end markets where our value proposition is strong.

We have successfully sold products and installed systems into several end market segments--including automotive/transportation, clean water and pool filtration, marine, industrial wastewater, chemicals/petrochemicals, and oil & gas applications.

We are focused on targeting and developing new customers in these end markets while working with distributors, agents, and partners to access other important geographic markets.

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the liquid filtration market and the silicon carbide ceramic membrane & diesel particulate filter (DPF) market.

Our goal is to leverage our products and core technology and position our Company to take advantage of favorable market trends.

Our goal is to leverage our products and core technologies to take advantage of favorable market trends.

Liquid Filtration Systems and Aftermarket

Water is essential to life on earth and clean water shortages are affecting billions of people.

Today, 2.2 billion people lack safely managed drinking water, and 3 billion people worldwide lack basic handwashing facilities at home.

Today, 2.2 billion people lack safe drinking water, and 3 billion people worldwide lack basic handwashing facilities at home.

In addition, more than 700 million people could be displaced due to water scarcity (according to the UN).

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LiqTech is differentiated by what we believe is our superior SiC membrane technology and our ability to provide a complete water treatment system for select industries and applications.

Our applications within industrial wastewater and more specific applications such as chemicals/petrochemicals purification represent a core part of our strategic plan.

We seek to leverage our innovative and patented SiC ceramic membrane technology by designing and deploying our filtration systems into complex and demanding industrial applications where our clients can benefit from both operational benefits and value creation.

Our applications within industrial wastewater and more specific applications such as chemical/petrochemical purification represent a core part of our strategic plan.

Recent deployments have showcased attractive returns on investment, as our solutions yield improved product characteristics, lower operational costs, and higher output.

We are currently focused on evaluation future market potential in order to more accurately assess the commercial potential within each industrial end-market segment.

Based on industry research, the growth within the global industrial water & wastewater treatment market is projected to reach $7.7 billion by 2030.

We are currently focused on evaluating future market potential to more accurately assess the commercial potential within each industrial end-market segment.

Based on industry research, the total addressable market within the global industrial water & wastewater treatment market is projected to reach $7.7 billion by 2030.

In the oil & gas market, we see growing global demand for high-quality re-injection water.

In addition, we see tightening water discharge legislation, increasing public awareness of water scarcity, and growing adoption of reuse as key growth drivers in this end market.

In the past two years, we have worked closely with industry partners to validate and accelerate our ultrafiltration technology applications within the global oil & gas industry, in both onshore and offshore environments, evidenced by a commercial installation in the Middle East for produced water and in the Mediterranean Sea for monoethylene glycol (MEG) recovery.

Presently, we have initiated activity to penetrate the U.S.

onshore oil & gas market.

In addition, we see tightening water discharge legislation, increasing public awareness of water scarcity, and heightening adoption of reuse as key growth drivers in this end market.

In the past two years, we have worked closely with industry partners to validate and accelerate our ultra-filtration technology applications within the global oil & gas industry, in both onshore and offshore environments, evidenced by a commercial installation in the Middle East for produced water and in the Mediterranean Sea for monoethylene glycol (MEG) recovery.

In 2024, we have succeeded in two commercial installations in the U.S.

onshore market.

The projected global market for produced water treatment has large potential for the Company.

According to Zion Market Research, the market will grow with a CAGR of 8% and reach a market size of $16 billion in 2032 from $8 billion in 2023

The market for marine water filtration systems is dependent on the development of new regulations for sulfur and ballast water emissions.

In 2020, IMO issued Marpol VI with clear regulation of SOx emission for marine ships.

In 2020, IMO (International Maritime Organization) issued Marpol VI with clear regulation of SOx emissions for marine ships.

The regulation can be reached in one of two ways:

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2) installation of open-loop, hybrid, or closed-loop scrubbers.

Only hybrid and closed-loop systems can be use in ”ECA” zones (Emission Control Areas).

Only hybrid and closed-loop systems can be used in “ECA” zones (Emission Control Areas).

For hybrid and closed-loop systems, there is a need to install a water treatment system.

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Since 2018, LiqTech has sold and installed more than 170 water treatment units (WTU) for marine scrubbers, with an estimated market share of 14%.

In the future, we will further develop and reposition our WTU to match the emerging new opportunity for exhaust gas recirculation in dual-fuel engines.

Sustainability is gaining increasing attention in the shipping industry.

Most commercial new vessels are built with dual-fuel engines.

This type of engines requires an efficient and reliable water treatment system for exhaust gas recirculation, for which it is necessary for engine combustion efficiency.

Based on our many commercially operated water treatment systems, we have developed a unique for this new application.

We are actively repositioning our WTU to match the emerging new opportunity for exhaust gas recirculation in dual-fuel engines.

This new market development supports the energy transition for the marine industry and will be a major trend in the coming years.

According to Clarkson shipping intelligence and other public sources, there are greater than 400 new dual-engine vessels on order for 2024 to 2027.

In addition to our industrial, oil & gas, and marine applications, our Company offers industry-leading commercial pool filtration systems globally through distributors and local partners.

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We believe our offering is uniquely positioned to unlock future growth in the context of the global focus on ESG, since our commercial pool application delivers safe, clean, and clear water to our clients with lower energy consumption and reduced lifecycle costs.

The market for commercial pools in Europe alone was $1.5 billion in 2021 and expected to grow at a CAGR of 6.2% from 2021 to 2028 based on relevant industry research published in June 2022.

We remain committed to expand our geographical reach outside Europe through new partnerships and distribution agreements.

Furthermore, we have recently intensified focus on aftermarket sales through service & maintenance agreements and general sale of spare parts to our clients and partners.

We intend to leverage the installed base of our filtration systems delivered and commissioned over the last decade by engaging with both new and existing clients to develop a closer and more comprehensive partnership structure and ultimately bundle our filtration system and aftermarket offering.

According to Frost & Sullivan's report European Swimming Pool Water Treatment Growth Opportunities (June 2022), the European commercial pool market is projected to grow at a CAGR of 6.1% from 2024 to 2028, reaching a total addressable market of $687 million.

We remain committed to expand our geographical reach outside of Europe through new partnerships and distribution agreements.

Furthermore, we have recently intensified our focus on aftermarket sales through service & maintenance agreements and the sale of spare parts to our clients and partners.

We believe the aftermarket segment benefits from robust growth fundamentals as clients and technology providers are increasingly focused on unlocking value through close collaboration, for which service and maintenance will yield improved customer satisfaction and growth.

Silicon Carbide Ceramic Membrane & Diesel Particulate Filter (DPF) Market

Our legacy business related to the provision of DPF filters is expected to continue growing across Asia, Europe, and North America as regulators require diesel engines to comply with new and more stringent environmental rules and regulations.

Our legacy business related to the provision of DPF filters is expected to continue growing across Europe and North America as regulators require diesel engines to comply with new and more stringent environmental rules and regulations.

In Europe, for example, cities in Germany and the Benelux countries are enforcing increasingly stringent requirements for diesel engines to include DPF filters, with the same trend also taking place in select Asian countries.

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Reducing diesel emissions will have both health and social benefits along with reduced costs.

In response to these health impacts, governments have been implementing legislation to regulate emissions from diesel engines.

In response to health impacts, governments have been implementing legislation to regulate emissions from diesel engines.

California implemented the Diesel Risk Reduction Plan, and New York City implemented binding directives for the retrofitting of buses, garbage trucks, and construction machines.

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Also, low emission zones have been implemented locally in various places in Europe, creating a patchwork of regulation.

The Asian markets have shown an improved standard of living due to economic growth, which has led to increased sales of vehicles in the region.

At the same time, pollution in major cities has reached high particulate matter levels.

As a result, for example, the Chinese government has introduced additional regulations, including new emissions standards, faster than previously anticipated.

We also believe the high pollution levels will increase the need to retrofit existing vehicles.

Historically, our business has predominantly sold our ceramic membranes through integrated filtration system offerings with SiC, HTM, and Aqua Solution® membranes embedded in the filtration systems offered to our partners, distributors, and end clients.

Recently, we have intensified focus on the direct sale of SiC and HTM membrane products to clients and integrators across jurisdictions to directly access the global market for ceramics membrane solutions in the context of the growing need for clean water and responsible handling of industrial wastewater, while also placing value-enhancing applications across core industrial processes such as chemicals/petrochemicals, enhanced oil recovery, and other applications.

We intend to work on accelerating market penetration and further validate perspectives on market potential and value proposition through detailed market studies and associated estimates of total addressable markets.

Historically, our business has predominantly sold our integrated filtration systems with embedded SiC, HTM, and Aqua Solution® membranes to our partners, distributors, and end users.

Recently, we have intensified our focus on the direct sale of SiC and HTM membrane products to clients and integrators across jurisdictions to directly access the global market for ceramics membrane solutions in the context of the growing need for clean water and responsible handling of industrial wastewater, while also placing value-enhancing applications across core industrial processes such as chemical/petrochemical, enhanced oil recovery, and other applications.

Research and Development

We have eight (8) full-time employees that are primarily engaged in R&D activities pertaining to the development of technology and intellectual property rights related to silicon carbide product formulas, applications, and manufacturing processes.

We have eight (8) full-time employees who are primarily engaged in R&D activities pertaining to the development of technology and intellectual property rights related to silicon carbide product formulas, applications, and manufacturing processes.

Manufacturing

We currently manufacture our ceramic membrane and DPF products in Ballerup, Denmark (Copenhagen area).

We assemble our liquid filtration systems in Hobro, Denmark, and we manufacture plastic products at our facility located in Aarhus, Denmark.

We plan to consolidate, optimize, and expand our production capacity within the existing facilities with further support from existing partnerships across Europe, Middle East, and Asia.

We assemble our liquid filtration systems and manufacture plastic products at our facilities located in Hobro, Denmark.

We plan to consolidate, optimize, and expand our production capacity within the existing facilities with further support from partnerships across the U.S.

Raw Materials and Components

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Sales, Marketing and Business Intelligence

Our products and services are sold both directly and indirectly to end clients across multiple jurisdictions and end-markets through direct sales, systems integrators, distributors, agents, and partners.

Our products and services are sold both directly and indirectly to end users across multiple jurisdictions and end-markets through direct sales, systems integrators, distributors, agents, and partners.

Our Company initially focused on selling DPF filters to the automotive industry to reduce exhaust gas emissions in diesel engines.

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We plan to actively market our existing products to new customers as we penetrate new end markets and optimize our manufacturing capacity.

As of December 2023, we employed eleven (11) full-time sales, marketing and strategy personnel in addition to partnership and distribution agents.

As of December 2024, we employed ten (10) full-time sales, marketing and strategy personnel in addition to partnership and distribution agents.

We promote our products through direct sales to potential customers and marketing activities such as participation in tradeshows and exhibitions, with a new focus on digital marketing.

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Intellectual Property

We have one issued patent in the United States that we co-own with a third party, two issued patents in Denmark, three issued foreign patents (Germany, China, and South Korea) that we co-own with a third party, and one pending European patent application that we co-own with a third party.

The United States patent that we co-own is generally effective for 20 years from the filing date (July 8, 2004) of the earliest U.S.

or international application to which it claims priority.

The scope and duration of each of our foreign patents vary in keeping with local laws.

We have two issued patents in Denmark, one issued European patent, and one pending European and US patent application that we co-own with a third party.

Scope and duration of each of our foreign patents vary in keeping with local laws.

On July 7, 2014, we obtained a new Danish patent application related to our silicon carbide membrane technology.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business