Note 7 - Goodwill

12 Months Ended

Dec. 31, 2017

Notes to Financial Statements

Goodwill Disclosure [Text Block]

NOTE

7

- GOODWILL

Goodwill

resulted from the acquisition of LiqTech Systems A/S (Formerly Provital Solutions A/S)

and was impaired during

2016.

Goodwill is evaluated for impairment annually in the

fourth

quarter of the Company’s fiscal year, and whenever events or changes in circumstances indicate the carrying value of goodwill

may

not

be recoverable. Triggering events that

may

indicate impairment include, but are

not

limited to, a significant adverse change in customer demand or business climate that could affect the value of goodwill or a significant decrease in expected cash flows. Key variables included in evaluating goodwill for impairment include the pipeline of proposed potential customer sales, budgeted reoccurring sales, risk free interest rate and risk premium rate and future budgeted operating results. The Company recorded an impairment charge of

$0

and

$7,343,208

on goodwill, during the year ended

December 31, 2017

and

2016,

as management's estimated fair value of the reporting unit did

not

exceeded the carrying value during

2016

fourth

quarter testing.