LIQTECH INTERNATIONAL INC Segments Disclosure
NOTE 13 – SEGMENT REPORTING
The Company operates through three reportable segments: Systems and Aftermarket, Filters and Membranes, and Components. Each segment comprises multiple sub-segments that leverage a shared production infrastructure and centralized supporting functions. The Company’s Chief Operating Decision-Maker (“CODM”) is Executive Management, consisting of the Chief Executive Officer, and Chief Financial & Operating Officer. Revenue information at both the segment and sub-segment levels is reviewed regularly as part of daily operational management. Profitability and asset information is available and evaluated at the segment level on a monthly basis. Resource allocation decisions are made at the segment level and are assessed on a quarterly basis.
The Company’s reportable segment information for the years ended December 31, 2025, and 2024 were as follows:
| For the Year Ended | ||||||||
| December 31, | ||||||||
| Revenues | 2025 | 2024 | ||||||
| Systems and Aftermarket | $ | 8,243,681 | $ | 5,538,741 | ||||
| Filters and Membranes | 4,006,105 | 5,634,973 | ||||||
| Components | 4,120,754 | 3,381,408 | ||||||
| Corporate | 137,018 | 49,496 | ||||||
| Total revenues | $ | 16,507,558 | $ | 14,604,618 | ||||
| For the Year Ended | ||||||||
| December 31, | ||||||||
| COGS | 2025 | 2024 | ||||||
| Systems and Aftermarket | $ | 6,788,273 | $ | 4,351,092 | ||||
| Filters and Membranes | 5,235,530 | 6,586,323 | ||||||
| Components | 3,230,056 | 3,398,267 | ||||||
| Corporate | 3,176 | 18,031 | ||||||
| Total COGS | $ | 15,257,035 | $ | 14,353,713 | ||||
| For the Year Ended | ||||||||
| December 31, | ||||||||
| Operating Expenses | 2025 | 2024 | ||||||
| Systems and Aftermarket | $ | 2,880,970 | $ | 3,584,182 | ||||
| Filters and Membranes | 1,711,413 | 1,777,979 | ||||||
| Components | 1,204,430 | 1,327,436 | ||||||
| Corporate | 3,762,410 | 3,049,157 | ||||||
| Total Operating Expenses | $ | 9,559,223 | $ | 9,738,754 | ||||
| For the Year Ended | ||||||||
| December 31, | ||||||||
| Other Income (Expense) and Income tax benefit | 2025 | 2024 | ||||||
| Systems and Aftermarket | $ | (229,037 | ) | $ | 247,309 | |||
| Filters and Membranes | (172,237 | ) | (593,471 | ) | ||||
| Components | (8,661 | ) | 40,000 | |||||
| Corporate | 116,695 | (551,247 | ) | |||||
| Total Other Income (Expense) and Income tax benefit | $ | (293,240 | ) | $ | (857,409 | ) | ||
| For the Year Ended | ||||||||
| December 31, | ||||||||
| Net loss | 2025 | 2024 | ||||||
| Systems and Aftermarket | $ | (1,654,600 | ) | $ | (2,149,224 | ) | ||
| Filters and Membranes | (3,113,075 | ) | (3,322,800 | ) | ||||
| Components | (322,394 | ) | (1,304,295 | ) | ||||
| Corporate | (3,511,871 | ) | (3,568,939 | ) | ||||
| Total net loss | $ | (8,601,940 | ) | $ | (10,345,258 | ) | ||
| As of | ||||||||
| December 31, | December 31, | |||||||
| Total assets | 2025 | 2024 | ||||||
| Systems and Aftermarket | $ | 10,210,357 | $ | 8,235,726 | ||||
| Filters and Membranes | 10,139,656 | 10,679,025 | ||||||
| Components | 1,942,818 | 1,670,644 | ||||||
| Corporate | 4,985,266 | 11,842,084 | ||||||
| Total assets | $ | 27,278,097 | $ | 32,427,479 | ||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Mar 28, 2025 | |
| 2023 | Mar 22, 2024 | |
| 2022 | Mar 22, 2023 | |
| 2021 | Mar 31, 2022 | |
| 2020 | Mar 31, 2021 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.