Red Flags Detected
- Going Concern (new) — Management disclosed substantial doubt about the company's ability to continue as a going concern for the first time in Q1 2026.
- Material Weakness (worsened) — Material weaknesses continue into 2026 after persisting through 2025, and company shifted from completed ERP implementation to evaluating ERP reimplementation, indicating remediation efforts have not succeeded.
LiqTech flags going-concern doubt as cash falls 74%; control weaknesses persist into 2026
Filed May 13, 2026 · Period ending March 31, 2026 · Compared to 10-Q May 14, 2025 · ~2 min read
Key Changes
-
high
Management disclosed substantial doubt about ability to continue operations for the next 12 months due to operating losses and cash outflows. Cash declined from $10.4M to $2.7M year-over-year, a 74% drop, while quarterly cash burn accelerated from $1.3M to $1.9M.
MD&A: Liquidity verify on EDGAR → -
high
Material weaknesses in financial controls persist into 2026. Company now evaluating ERP reimplementation after previously stating it had implemented a new system in 2023, indicating prior remediation efforts failed to achieve control objectives.
Controls & Procedures verify on EDGAR → -
high
Q1 2026 revenue declined 10% to $4.1M due to non-recurring large system delivery in prior year. Gross margin improved dramatically from 2.7% to 9.5% driven by better product mix and capacity utilization, but improvement occurs against backdrop of revenue contraction and liquidity crisis.
MD&A: Results of Operations verify on EDGAR →
2 more material changes behind this preview — plus the full narrative summary, section-by-section diffs against the prior filing, and verbatim quotes with EDGAR citations.
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Generated by AI · Jun 10, 2026 9:42 PM