At present, we conduct our operations in the Kingdom of Denmark. Our Danish operations are located in the Copenhagen area, in Hobro, and in Aarhus.

? Develop and reinforce new products and applications to provide clean water and

reduce pollution. We currently provide water filtration systems for scrubber

technology providers, shipowners, and ship operators as well as tailored

filtration systems for oil & gas operators and services companies. We are

expanding our range of products to better leverage existing customer

relationships and develop new relationships within the oil & gas, marine, and

? Better penetrate existing end markets where our value proposition is strong.

We have successfully sold products and installed systems into several end

markets--including automotive/transportation, clean water and pool filtration,

marine, industrial wastewater, and oil & gas. We are focused on targeting and

activating new customers in these end markets while working with distributors,

agents, and partners to access other important geographic markets.

? Develop new end markets for our core products and applications. Our existing

products and systems are relevant for and valuable to other end markets, and

The financial information below is derived from our unaudited condensed consolidated financial statements included elsewhere in this report.

The following table sets forth our revenues, expenses and net loss for the three months ended June 30, 2022 and 2021:

Total operating expenses for the three months ended June 30, 2022 were $4,741,719, representing an increase of $1,857,372, or 64%, compared to $2,884,347 for the same period in 2021, mainly driven by this quarter's restructuring costs of $1,788,827.

The following is a summary of non-cash compensation:

Compensation for vesting of restricted stock awards issued to the Board of Directors

This change was primarily attributable to this quarter's recognized restructuring costs of $1,788,827 and other expenses including interest and amortization discount primarily related to the repayment of the Convertible Note.

Comparison of the Six Months Ended June 30, 2022 and June 30, 2021

The following table sets forth our revenues, expenses and net loss for the six months ended June 30, 2022 and 2021:

The following is a summary of non-cash compensation:

Compensation for vesting of restricted stock awards issued to the Board of Directors

Research and development expenses for the six months ended June 30, 2022, were $1,093,573 compared to $872,236 for the same period in 2021, representing an increase of $221,337, or 25%. The increase represents the completion of several development projects during the period.

Restructuring costs for the six months ended June 30, 2022, were $1,788,827 compared to $0 for the same period in 2021. The restructuring program was executed in the second quarter.

This change was primarily attributable to the operating losses for the period, second quarter restructuring charges, and refinancing cost related to the repayment of the Convertible Note.

The Note has interest payable quarterly beginning on June 1, 2021 at a rate of 5% per annum. The number of shares issuable if the Company elects to pay interest in shares of Common Stock shall be based on the Market Price.

As of June 22, 2022, the Note, including accrued interests and all relevant obligations, was repaid in full, amounting to $13,446,875, allocated to principal repayment of $11,640,000 and contractual repayment premium of $1,806,875. During the quarter, the Company paid the second, third, and fourth installment, totaling $2,520,000, in cash according to the original payment schedule.

Six months ended June 30, 2022 compared to six months ended June 30, 2021

Significant Accounting Policies and Critical Accounting Estimates

operating expenses when and if we record bad debt or adjust the allowance for

doubtful accounts; ? the assessment of recoverability of long-lived assets, which impacts gross

profit or operating expenses when and if we record asset impairments or

accelerate their depreciation; ? the recognition and measurement of current and deferred income taxes (including

the measurement of uncertain tax positions), which impact our provision for

? the valuation of inventory, which impacts gross profit; and ? the recognition and measurement of loss contingencies, which impact

gross profit or operating expenses when we recognize a loss contingency, revise

For a description of accounting changes and recent accounting standards, including the expected dates of adoption and estimated effects, if any, on our consolidated financial statements, see "Note 1: Recently Enacted Accounting Standards" in the accompanying Financial Statements.

For a description of subsequent events, see "Note 13 - Subsequent Events".

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