Assets Held for Sale -- Assets are classified as held for sale when all of the following criteria for a plan of sale have been met: (1) management, having the authority to approve the action, commits to a plan to sell the assets; (2) the assets are available for immediate sale, in their present condition, subject only to terms that are usual and customary for sales of such assets; (3) an active program to locate a buyer and other actions required to complete the plan to sell the assets have been initiated; (4) the sale of the assets is probable and is expected to be completed within one year; (5) the assets are being actively marketed for a price that is reasonable in relation to their current fair value; and (6) actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or the plan will be withdrawn. When all of these criteria have been met, the assets are classified as held for sale on the balance sheet. Assets classified as held for sale are reported at the lower of their carrying value or fair value less costs to sell. Depreciation and amortization of assets ceases upon designation as held for sale.

Leases-- The Company has elected to not recognize lease assets and liabilities with an initial term of 12 months or less and to not separate lease and non-lease components. The Company’s accounting for finance leases (formerly called capital lease obligations) remains substantially unchanged. Operating lease right-of-use (“ROU”) assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, an incremental borrowing rate based on the information available at the commencement date is used in determining the present value. The Company will use the implicit rate when readily determinable. The operating lease ROU asset also included prepaid lease payments and reduced by accrued lease payments. The Company’s lease terms may include options to extend or terminate the lease, for which the Company will reflect the change when it is reasonably certain that those options will be exercised. Operating lease cost for lease payments will be recognized on a straight-line basis over the lease term.

Property and Equipment-- Property and equipment are stated at cost. Expenditures for major renewals and betterments that extend the useful lives of property and equipment are capitalized upon being placed in service. Expenditures for maintenance and repairs are charged to expense as incurred. Depreciation is computed for financial statement purposes on a straight-line basis over the estimated useful lives of the assets, which range from three to ten years (See Note 4). years.

Long-Term InvestmentsGoodwill and Intangible Assets-- Investments in non-consolidated companies The purchase price of an acquired company is allocated between intangible assets and the net tangible assets of the acquired business, with the residual purchase price recorded as goodwill. The determination of the value of the intangible assets acquired involves certain judgments and estimates. These judgments can include, but are included in long-term investmentsnot limited to, the cash flows that an asset is expected to generate in the consolidated balance sheetfuture and the appropriate weighted average cost of capital.

Acquired intangible assets with determinable useful lives are accounted for underamortized on a straight-line or accelerated basis over the cost methodestimated periods benefited, ranging from one to ten years. Customer relationships and equity method. For these non-quoted investments, we regularly reviewother non-contractual intangible assets with determinable lives are amortized over periods of five years.

The Company evaluates the assumptions underlyingrecoverability of long-lived assets by comparing the operating performance andcarrying amount of an asset to estimated future net undiscounted cash flow forecasts based on information requested from these privately held companies. Generally, this information mayflows generated by the asset. If such assets are considered to be more limited, may not beimpaired, the impairment recognized is measured as timely as and may be less accurate than information available from publicly traded companies. Assessing each investment'sthe amount by which the carrying value requires significant judgment by management. If it is determined that there is another-than-temporary decline inof the assets exceeds the fair value of a non-public equity security, we write-down the investmentassets. The evaluation of recoverability involves estimates of future operating cash flows based upon certain forecasted assumptions, including, but not limited to, its fair valuerevenue growth rates, gross profit margins, and record the related write-down as an investment loss in the consolidated statement of operations.

Intangible Assets -- Definite life intangible assets include patents. The Company accounts for definite life intangible assets in accordance with Financial Accounting Standards Board, (“FASB”) Accounting Standards Codification, (“ASC”) Topic 350, “Goodwill and Other Intangible Assets” and amortized the patents on a straight line basisoperating expenses over the estimatedexpected remaining useful life of two to ten years. the related asset. A shortfall in these estimated operating cash flows could result in an impairment charge in the future.

Goodwill -- Goodwill is not amortized but is evaluated annually for impairment annually, and whenever eventsat the reporting unit level or changes in circumstances indicatewhen indicators of a potential impairment are present. The Company estimates the carryingfair value of goodwill may not be recoverable. Triggering events that may indicate impairment include, butthe reporting unit using the discounted cash flow and market approaches. Forecasts of future cash flows are not limited to, a significant adverse change in customer demand or business climate that could affectbased on the valueCompany’s best estimate of goodwill or a significant decrease infuture net sales and operating expenses, using primarily expected cash flows.category expansion, pricing, market segment fundamentals, and general economic conditions.

Revenue Recognition and Sales Incentives-- The Company accounts for revenue recognition in accordance withsells products throughout the Securitiesworld, and Exchange Commission Staff Accounting Bulletin No. 101, “Revenue Recognition in Financial Statements” (SAB 101), FASB ASC 605 Revenue Recognition. The Company recognizes revenue when rights and risk of ownership have passed to the customer, when there is persuasive evidence of an arrangement, product has been shipped or delivered to the customer, the price and termssales by geographical region are finalized, and collections of resulting receivable is reasonably assured. Products are primarily shipped FOB shipping point at which time title passes to the customer. In some instances, the Company uses common carriersas follows for the delivery of products. In these arrangements, sales are recognized upon delivery to the customer. The Company's revenue arrangements with its customers often include early payment discounts three months ended March 31, 2023 and such sales incentives are recorded against sales.2022:

The Company’s sales by product line are as follows for the three months ended March 31, 2023 and 2022:

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)For Water (systems and aftermarket), Ceramics (diesel particulate filters and membranes), and Plastics (components), revenue is recognized when performance obligations specified within the terms of a contract with the customer are satisfied, which occurs when control of the product transfers to the customer or when services are rendered by the Company. The majority of the Company's sales contracts contain performance obligations satisfied at a point in time when title along with risks and rewards of ownership have transferred to the customer. This generally occurs when the product is shipped or accepted by the customer. Revenue for service contracts is recognized as the services are provided. Revenue is measured as the amount of consideration expected to be received in exchange for transferring the goods or providing services. The satisfaction of performance obligations under the terms of a revenue contract generally gives rise to the right to receive payment from the customer. The Company's standard payment terms vary by the type and location of the customer and the products or services offered. Generally, the time between when revenue is recognized and when payment is due is not significant. Pre-payments received prior to satisfaction of performance obligations are recorded as a Contract liability. Considering the relatively short time between revenue recognition and receipt of payment, financing components do not exist between the Company and its customers.

For contracts with customers that include multiple performance obligations, judgment is required to determine whether performance obligations specified in these contracts are distinct and should be accounted for as separate revenue transactions for recognition purposes. For such arrangements, revenue is allocated to each performance obligation based on its relative standalone selling price. Standalone selling prices are generally determined based on the prices charged to customers or using expected cost-plus margin.

System sales are recognized when the Company transfers control to the customer based upon sales and delivery conditions specified in the sales contract. This typically occurs upon shipment of the system from the production facility but can also occur upon other agreed delivery terms. In connection with the completion of the system, it is normal procedure to issue a FAT (Factory Acceptance Test) asserting that the customer has accepted the performance of the system as it is being shipped from our production facility in Hobro. As part of the performance obligation, the customer is normally offered commissioning services (final assembly and configuration at a place designated by the customer), and this commissioning is therefore considered a second performance obligation and is valued at cost, with the addition of a standard gross margin. This second performance obligation is recognized as revenue at the time of the commissioning services being rendered together with the cost incurred. Part of the invoicing to the customer is also attributed to the commissioning, and at transfer of the control of the system (i.e., the first performance obligation), this portion is recognized as Contract liabilities.

Aftermarket sales represent parts, extended warranties, and maintenance services. For the sale of aftermarket parts, the Company transfers control and recognizes revenue when parts are shipped to the customer. When customers are given the right to return eligible parts and accessories, the Company estimates the expected returns based on an analysis of historical experience. The Company adjusts estimated revenues at the earlier of when the most likely amount of consideration expected to be received changes or when the consideration becomes fixed. The Company recognizes revenue for extended warranty and maintenance agreements based on the standalone selling price over the life of the contract.

The Company has received long-term contracts for the installation of various water filtrations systems and grants from government entities for the development and use of silicon carbide membranes in various water filtration and treatment applications. Revenues fromapplications and historically in the installation of various water filtration systems. We measure the transfer of control of the performance obligation on long-term contracts and grants are recognized onutilizing the percentage-of-completion method, measured by the percentage of project costs incurred to date to estimated total project costs for each long-term contract or grant multiplied by the long-term contract or grant income on a project-by-project basis. This method is used because management considers costs incurred to be the best availablecost-to-cost measure of progress, with cost of revenue including direct costs such as labor and materials. Under the cost-to-cost approach, the use of estimated costs to complete each performance obligation is a significant variable in the process of determining recognized revenue and a significant factor in the accounting for such performance obligations. The timing of when we bill our customers is generally dependent upon advance billings terms, milestone billings based on contracts in process.

Project costscompletion of certain phases of the long-term contracts and grants include all direct material and laborwork, or when services are provided or products are shipped. Projects with performance obligations recognized over time that have costs and those indirect costs relatedestimated earnings recognized to the project. Project costs are capitalized and accreted into cost of sales based on the percentage of the project completed. Should a loss be estimated on an incomplete project it would be recorded in the period in which such a loss is determined. Changes in estimated profitability of a project are recognized in the period in which the revisions are determined. The aggregate of costs incurred and income recognized on incomplete projects are recorded as costsdate in excess of cumulative billings and are shownreported on our balance sheet as a current asset. 

The aggregate ofContract assets. Projects with performance obligations recognized over time that have cumulative billings in excess of related costs incurred and incomeestimated earnings recognized to date are reported on projects is shownour balance sheet as a current liability.  Contract liabilities.

In Denmark, Value Added Tax (“VAT”)The roll-forward of 25% ofContract assets / liabilities for the invoice amount periods ended March 31, 2023 and December 31, 2022 is collected in respect of the sales of goods on behalf of tax authorities. The VAT collected is not revenue of the Company; instead, the amount is recorded as a liability on the balance sheet until such VAT is paid to the authorities. follows:

Advertising Cost-- Cost Costs incurred in connection with advertising of the Company’s products isare expensed as incurred. SuchAdvertising costs amounted to $9,270are included in sales expenses, and $21,307total advertising costs for the nine monthsthree-month periods ended September 30, 2017 March 31, 2023 and 2016,2022 were $32,599 and $55,524, respectively.

Research and Development Cost-- The Company expenses research and development costs for the development of new products and systems as incurred. Included in operating expense for the nine monthsthree-month periods ended September 30, 2017 March 31, 2023 and 20162022 were $375,026 and $476,734, respectively, of research and development costs.costs of $342,619 and $602,737, respectively.

Income Taxes-- The Company accounts for income taxes in accordance with FASB ASC Topic 740, Accounting for Income Taxes. This statement requires an asset and liability approach forwith respect to accounting for income taxes.

Income Income/(Loss)Per Share-- The Company calculates earnings (loss) per share in accordance with FASB ASC 260, Earnings Per Share. Basic earnings per common share (EPS) are based on the weighted average number of common shares of Common Stock outstanding during each period. Diluted earnings per common share are based on shares outstanding (computed as under basic EPS) and potentially dilutive common shares. Potential common shares of Common Stock included in the diluted earnings per share calculation include in-the-money stock options, RSUs and warrants that have been granted but have not yet been exercised.

Stock Options and Awards-- The During the years presented in the accompanying consolidated financial statements, the Company has granted stock options and awards to certain key employees and directors. See Note 14.awards. The Company accounts for optionsstock awards in accordance with the provisions of FASB ASC Topic 718, Compensation – Stock Compensation. Non-cash compensation costs

Fair Value of Financial Instruments --The-- The Company accounts for fair value measurements for financial assets and financial liabilities in accordance with FASB ASC Topic 820. The authoritative guidance, which among other things, defines fair value, establishes a consistent framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring or nonrecurringnon-recurring basis. Fair value is defined as the exit price, representing the amount that would either be received to sell an asset or be paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the guidance establishes a three-tierthree-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Unless otherwise disclosed, the fair value of the Company’sCompany’s financial instruments including cash, accounts receivable, other receivables, prepaid expenses, investments, accounts payable, accrued expenses, capital lease obligations andconvertible notes payable, approximatesand senior promissory notes payable approximate their recorded values due to their short-term maturities.

Accounting Estimates-- The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets including accounts receivable; allowance for doubtful accounts receivable, cost in excess of billings,accounts; contract assets; reserve for excess and obsolete inventory,inventory; depreciation and impairment of property, plant and equipmentequipment; goodwill; liabilities including contract liabilities and impairment of goodwill and liabilities billings in excess of cost commitment and contingencies,contingencies; the disclosures of contingent assets and liabilities at the date of the financial statementsstatements; and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimated.

Recent Accounting Pronouncements -- In May 2014, the Financial Accounting Standards Board (FASB) issued a new standard to achieve a consistent application of revenue recognition within the U.S., resulting in a single revenue model to be applied by reporting companies under U.S. generally accepted accounting principles. Under the new model, recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the new standard requires that reporting companies disclose the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. On July 9 2015, the FASB agreed to delay the effective date by one year; accordingly, the new standard is effective for us beginning in the first quarter of 2018 and we expect to adopt it at that time. The new standard is required to be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying it recognized at the date of initial application. We have not yet selected a transition method, nor have we determined the impact of the new standard on our consolidated financial statements.

In February 2016, the FASB issued changes to the accounting for leases that primarily affect presentation and disclosure requirements. The new standard will require the recognition of a right to use asset and underlying lease liability for operating leases with an initial life in excess of one year. This standard is effective for us beginning in the first quarter of 2019. We have not yet determined the impact of the new standard on our consolidated financial statements.

Other recentRecent accounting pronouncements issued by the FASB did not or are not believed by management to have a material impact on the Company’sCompany’s present or future financial statements.

NOTE 2 -– GOING CONCERN

The accompanying consolidated financial statements have been prepared in conformity with generally accepted accounting principles of the United States of America, which contemplate continuation of the Company as a going concern. However,concern; however, the Company has limited cash and incurred significant recent losses. These factors raiselosses, which raises substantial doubt about the ability of the Company to continue as a going concern.concern for a period of one year from the issuance of these financial statements. There is no assurance that the Company will be successful in raising additional cash throughexecuting the issuance of debt or equity instruments or return toproposed cost reductions and profitability improvement measures, thus achieving profitable operations. The financial statements do not include any adjustments that might result from the outcome of these uncertainties.

NOTE 3 - INVENTORY

Inventory consisted of the following at September 30, 2017 on March 31, 2023, and December 31, 2016:2022:

Inventory valuation adjustments for excess and obsolete inventory are calculated based on current inventory levels, movements, expected useful lives, and estimated future demand for the products.

NOTE 4- PROPERTY AND EQUIPMENTLEASES

PropertyThe Company leases certain vehicles, real property, production equipment and office equipment consistedunder lease agreements. The Company evaluates each lease to determine its appropriate classification as an operating lease or finance lease for financial reporting purposes. The majority of the following at September 30, 2017our operating leases are non-cancelable leases for production and December 31, 2016:office space in Hobro, Aarhus and Copenhagen, Denmark.

During the three months ended March 31, 2023, cash paid for amounts included for the measurement of finance lease liabilities was $98,945, and the Company recorded finance lease expenses in other income (expenses) of $109,165.

Depreciation expense amounted to $731,312 and $992,418During the three months ended March 31, 2023, cash paid for amounts included for the nine months ended September 30, 2017measurement of operating lease liabilities was $188,555, and 2016, respectively. The property and equipment is held as collateral on linesthe Company recorded operating lease expense of credit and guarantees with financial institutions. See Note 9.  $188,555.