Liqtech International (LIQT) risk factors, FY2025 10-K

RISKS RELATED TO OUR BUSINESS AND OPERATIONS

1. 01We will require substantial capital investment in the future, and our inability to raise adequate capital could affect our ability to continue as a going concernNew
2. 02If we fail to restore financial stability through improved profitability and access to adequate liquidity, our business options and financial condition would be impacted
3. 03The adverse effect to our business operations from armed conflicts (such as Ukraine/Russia and Hamas/Israel) or similar political, social, regulatory, or economic tension may challenge our operational flexibility and financial performance
4. 04Global trade restrictions, tariffs, and geopolitical tensions could adversely impact our business and supply chain99% rewritten
5. 05New or expanded trade restrictions, including export controls on key materials or technologies used in our products, could disrupt our supply chain, limit our ability to source critical components, and increase costsNew
6. 06Prolonged periods of energy market volatility and supply disruptions could negatively impact our business
7. 07Health crises, pandemics, and other public health emergencies could adversely affect our business, financial condition, and results of operations
8. 08The potential interruption or failure to obtain raw materials and components at affordable prices caused by continued global and regional supply chain constraints could negatively affect our ability to supply products to our customers and negatively affect our profit and delay revenue
9. 09If we are unable to manage our expected growth, our business may be materially and adversely affected
10. 10Our success will depend, to a large degree, on the expertise and experience of the members of our management team, the loss of whom could have a material adverse effect on our business
11. 11Adverse conditions, regulatory challenges, or lack of funding for emission control programs, may delay or negatively affect our future growth and market potential within the transportation and marine industries
12. 12We face changes in governmental standards by which our products are evaluated, and if we cannot meet any such changes, some of our products could become obsolete, which could have a material adverse effect on our business
13. 13Our international operations are exposed to potential adverse tax consequences
14. 14Our business could face adverse impacts due to increased interest rates, tightening debt capital markets, and market volatility
15. 15Foreign currency fluctuations could adversely impact financial performance
16. 16Our inability to protect our intellectual property rights could negatively affect our business and results of operations
17. 17Our contracts with third parties could negatively affect our intellectual property rights
18. 18We could become subject to intellectual property litigation that could be costly, limit or cancel our intellectual property rights, divert time and efforts away from business operations, require us to pay damages, and/or otherwise have an adverse material impact on our business
19. 19We face competition and technological advances by competitors, which could adversely affect the sales of our products
20. 20Any liability for environmental harm or damages resulting from technical faults or failures of our products could be substantial and could materially adversely affect our business and results of operations
21. 21We could become liable for damages resulting from our manufacturing activities, which could have a material adverse effect on our business or cause us to cease operations
22. 22Our actual or perceived failure to adequately protect personal data could adversely affect our business, financial condition, and results of operations
23. 23Some of our officers and directors are located outside of the United States; therefore, it may be difficult for an investor to enforce within the United States any judgments obtained against us or such officers and directors
24. 24We have signed partnership, distribution, and joint venture agreements and may engage in additional collaborations, joint ventures, or strategic alliances in the future, and we may not realize the benefits of such arrangements
25. 25If we fail to maintain an effective system of internal control over financial reporting, we may not be able to accurately report our financial results, and current and potential stockholders may lose confidence in our financial reporting
26. 26In Item 9A, we disclose that, with respect to the standards of Sarbanes-Oxley Section 404 and the internal controls standard to which we are subjected, we reported material weaknesses in our internal controls over financial reporting. For additional information on this item, please see Item 9A, Controls and Procedures
27. 27We may have risks associated with security of our information technology systems

RISKS RELATED TO OUR COMMON STOCK

1. 28Future equity financings or convertible debt issuances would dilute your ownership and could adversely affect your common stock ownership rights in comparison with those of other security holders
2. 29We will not receive a significant amount, or potentially any, additional funds upon the exercise of our pre-funded warrants; however, any exercise would increase the number of shares eligible for future resale in the public market and result in substantial dilution to our stockholders
3. 30Provisions in our articles of incorporation and bylaws could discourage a change in control or an acquisition of us by a third party, even if the acquisition would be favorable to you, thereby adversely affecting existing stockholders
4. 31Since April 16, 2019, our common stock has been traded on Nasdaq Capital Market under the ticker LIQT. Because there is limited volume in our common stock, investors may not be able to liquidate their investments when they desire to do so
5. 32The market price of our common stock has been and may continue to be volatile
6. 33the effect of macroeconomic uncertainty, global supply chain disruptions, or public health crises
7. 34If securities analysts do not publish research or reports about our business or if they downgrade us or our sector, the price of our common stock could decline38% rewritten
8. 35Future sales of our common stock, or the perception that future sales may occur, may cause the market price of our common stock to decline
9. 36The Company is considered a “smaller reporting company” and is exempt from certain disclosure requirements, which could make our common stock less attractive to potential investors
10. 37We have no current plan to pay dividends on our common stock, and investors may lose the entire amount of their investment
11. 38We will continue to incur significant costs from operating as a public company, and our management may be required to devote substantial time to compliance initiatives that ultimately could have a material adverse effect on our financial condition and results of operations
12. 39In preparing our financial statements, we make certain assumptions, judgments and estimates that affect amounts reported in our consolidated financial statements, which, if not accurate, may significantly impact our financial results