NORTH BILLERICA, MA / ACCESSWIRE / May 8, 2024 / Tecogen Inc. (OTCQX:TGEN), a leading manufacturer of clean energy products, reported revenues of $6.2 million and net loss of $1.1 million for the quarter ended March 31, 2024 compared to revenues of $5.4 million, and a net loss of $1.5 million in 2023. We generated $0.2 million in cash from operations during the quarter and ended the quarter with a cash balance of $1.5 million.
"In Q1 2024 had record service revenue of $4m, a 28% increase from the same period last year. We also had positive cash flow from operations. Our total revenue was also up 15% QoQ. Our cash position at the end of Q1 was $1.5m and we haven't drawn further into our line of credit. During the call I will update investors on our factory move, the service agreements we acquired in Q1 and our new marketing efforts," commented Abinand Rangesh, Tecogen's Chief Executive Officer.
Key Takeaways
Net Loss and Earnings Per Share
Loss from Operations
Revenues
Gross Profit
Operating Expenses
Adjusted EBITDA (1) was negative $0.9 million for the first quarter of 2024 compared to negative $1.3 million for the first quarter of 2023. (Adjusted EBITDA is defined as net income or loss attributable to Tecogen, adjusted for interest, income taxes, depreciation and amortization, stock-based compensation expense, unrealized gain or loss on investment securities, goodwill impairment charges and other non-cash non-recurring charges or gains including abandonment of intangible assets and the extinguishment of debt. See the table following the Condensed Consolidated Statements of Operations for a reconciliation from net income (loss) to Adjusted EBITDA, as well as important disclosures about the company's use of Adjusted EBITDA).
Conference Call Scheduled for May 9, 2024, at 9:30 am ET
Tecogen will host a conference call on May 9, 2024 to discuss the first quarter results beginning at 9:30 am eastern time. To listen to the call please dial (888) 428-7458 within the U.S. and Canada, or (862) 298-0702 from other international locations . Participants should ask to be joined to the Tecogen First Quarter 2024 earnings call. Please begin dialing 10 minutes before the scheduled starting time. The earnings press release will be available on the Company website at www.Tecogen.com in the "News and Events" section under "About Us." The earnings conference call will be webcast live . To view the associated slides, register for and listen to the webcast, go to https://ir.tecogen.com/ir-calendar . Following the call, the recording will be archived for 14 days.
The earnings conference call will be recorded and available for playback one hour after the end of the call. To listen to the playback, dial (877) 660-6853 within the U.S. and Canada , or (201) 612-7415 from other international locations and use Conference Call ID#: 13672659.
About Tecogen
Tecogen Inc. designs, manufactures, sells, installs, and maintains high efficiency, ultra-clean, cogeneration products including engine-driven combined heat and power, air conditioning systems, and high-efficiency water heaters for residential, commercial, recreational and industrial use. The company provides cost effective, environmentally friendly and reliable products for energy production that nearly eliminate criteria pollutants and significantly reduce a customer's carbon footprint.
In business for over 35 years, Tecogen has shipped more than 3,200 units, supported by an established network of engineering, sales, and service personnel across the United States. For more information, please visit www.tecogen.com or contact us for a free Site Assessment.
Tecogen, InVerde e+, Tecochill, Tecopower, Tecofrost, Tecopack, and Ultera are registered trademarks of Tecogen Inc.
Forward Looking Statements
This press release and any accompanying documents, contain "forward-looking statements" which may describe strategies, goals, outlooks or other non-historical matters, or projected revenues, income, returns or other financial measures, that may include words such as "believe," "expect," "anticipate," "intend," "plan," "estimate," "project," "target," "potential," "will," "should," "could," "likely," or "may" and similar expressions intended to identify forward-looking statements. These statements are only predictions and involve known and unknown risks, uncertainties, and other factors that may cause our actual results to differ materially from those expressed or implied by such forward-looking statements. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Forward-looking statements speak only as of the date on which they are made, and we undertake no obligation to update or revise any forward-looking statements.
In addition to those factors described in our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q and on our Form 8-K, under "Risk Factors", among the factors that could cause actual results to differ materially from past and projected future results are the following: fluctuations in demand for our products and services, competing technological developments, issues relating to research and development, the availability of incentives, rebates, and tax benefits relating to our products and services, changes in the regulatory environment relating to our products and services, integration of acquired business operations, and the ability to obtain financing on favorable terms to fund existing operations and anticipated growth.
In addition to GAAP financial measures, this press release includes certain non-GAAP financial measures, including adjusted EBITDA which excludes certain expenses as described in the presentation. We use Adjusted EBITDA as an internal measure of business operating performance and believe that the presentation of non-GAAP financial measures provides a meaningful perspective of the underlying operating performance of our current business and enables investors to better understand and evaluate our historical and prospective operating performance by eliminating items that vary from period to period without correlation to our core operating performance and highlights trends in our business that may not otherwise be apparent when relying solely on GAAP financial measures.
Tecogen Media & Investor Relations Contact Information:
Abinand Rangesh
P: 781-466-6487
E: This email address is being protected from spambots. You need JavaScript enabled to view it.
TECOGEN INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
| March 31, 2024 | December 31, 2023 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 1,510,435 | $ | 1,351,270 | ||||
Accounts receivable, net | 6,533,130 | 6,781,484 | ||||||
Unbilled revenue | 1,258,532 | 1,258,532 | ||||||
Inventories, net | 10,021,002 | 10,553,419 | ||||||
Prepaid and other current assets | 409,573 | 360,639 | ||||||
Total current assets | 19,732,672 | 20,305,344 | ||||||
Long-term assets: | ||||||||
Property, plant and equipment, net | 1,147,069 | 1,162,577 | ||||||
Right of use assets | 2,176,264 | 943,283 | ||||||
Intangible assets, net | 2,533,112 | 2,436,230 | ||||||
Goodwill | 2,646,194 | 2,743,424 | ||||||
Other assets | 223,232 | 201,771 | ||||||
TOTAL ASSETS | $ | 28,458,543 | $ | 27,792,629 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Related party notes | $ | 511,905 | $ | 505,505 | ||||
Accounts payable | 4,013,899 | 4,514,415 | ||||||
Accrued expenses | 2,682,656 | 2,504,629 | ||||||
Deferred revenue, current | 2,462,570 | 1,647,206 | ||||||
Lease obligations, current | 469,762 | 289,473 | ||||||
Acquisition liabilities, current | 929,411 | 845,363 | ||||||
Unfavorable contract liability, current | 162,822 | 176,207 | ||||||
Total current liabilities | 11,233,025 | 10,482,798 | ||||||
Long-term liabilities: | ||||||||
Deferred revenue, net of current portion | 345,427 | 369,611 | ||||||
Lease obligations, net of current portion | 1,725,276 | 683,307 | ||||||
Acquisition liabilities, net of current portion | 1,156,835 | 1,181,779 | ||||||
Unfavorable contract liability, net of current portion | 388,766 | 422,839 | ||||||
Total liabilities | 14,849,329 | 13,140,334 | ||||||
Stockholders' equity: | ||||||||
Tecogen Inc. shareholders' equity: | ||||||||
Common stock, $0.001 par value; 100,000,000 shares authorized; 24,850,261 issued and outstanding at March 31, 2024 and December 31, 2023 | 24,850 | 24,850 | ||||||
Additional paid-in capital | 57,645,937 | 57,601,402 | ||||||
Accumulated deficit | (43,984,623 | ) | (42,879,656 | ) | ||||
Total Tecogen Inc. stockholders' equity | 13,686,164 | 14,746,596 | ||||||
Non-controlling interest | (76,950 | ) | (94,301 | ) | ||||
Total stockholders' equity | 13,609,214 | 14,652,295 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 28,458,543 | $ | 27,792,629 | ||||
TECOGEN INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
| Three Months Ended | ||||||||
| March 31, 2024 | March 31, 2023 | |||||||
Revenues | ||||||||
Products | $ | 1,491,398 | $ | 1,710,136 | ||||
Services | 4,014,310 | 3,136,173 | ||||||
Energy production | 680,389 | 533,509 | ||||||
Total revenues | 6,186,097 | 5,379,818 | ||||||
Cost of sales | ||||||||
Products | 1,049,543 | 1,212,568 | ||||||
Services | 2,092,257 | 1,737,602 | ||||||
Energy production | 468,640 | 337,739 | ||||||
Total cost of sales | 3,610,440 | 3,287,909 | ||||||
Gross profit | 2,575,657 | 2,091,909 | ||||||
Operating expenses | ||||||||
General and administrative | 2,848,568 | 2,792,483 | ||||||
Selling | 529,669 | 520,070 | ||||||
Research and development | 254,696 | 229,102 | ||||||
Gain on disposition of assets | (7,391 | ) | - | |||||
Total operating expenses | 3,625,542 | 3,541,655 | ||||||
Loss from operations | (1,049,885 | ) | (1,449,746 | ) | ||||
Other income (expense) | ||||||||
Other income (expense), net | (15,747 | ) | 830 | |||||
Interest expense | (18,670 | ) | (415 | ) | ||||
Unrealized gain on investment securities | 18,749 | - | ||||||
Total other income (expense), net | (15,668 | ) | 415 | |||||
Loss before income taxes | (1,065,553 | ) | (1,449,331 | ) | ||||
Provision for state income taxes | 22,063 | 22,638 | ||||||
Consolidated net loss | (1,087,616 | ) | (1,471,969 | ) | ||||
Income attributable to the non-controlling interest | (17,351 | ) | (18,060 | ) | ||||
Net loss attributable to Tecogen Inc. | $ | (1,104,967 | ) | $ | (1,490,029 | ) | ||
Net loss per share - basic | $ | (0.04 | ) | $ | (0.06 | ) | ||
Weighted average shares outstanding - basic | 24,850,261 | 24,850,261 | ||||||
Net loss per share - diluted | $ | (0.04 | ) | $ | (0.06 | ) | ||
Weighted average shares outstanding - diluted | 24,850,261 | 24,850,261 | ||||||
| Three Months Ended | ||||||||
| March 31, 2024 | March 31, 2023 | |||||||
Non-GAAP financial disclosure (1) | ||||||||
Net loss attributable to Tecogen Inc. | $ | (1,104,967 | ) | $ | (1,490,029 | ) | ||
Interest expense, net | 18,670 | 828 | ||||||
Income taxes | 22,063 | 22,638 | ||||||
Depreciation & amortization, net | 140,137 | 105,920 | ||||||
EBITDA | (924,097 | ) | (1,360,643 | ) | ||||
Stock based compensation | 44,535 | 77,348 | ||||||
Unrealized gain on investment securities | (18,749 | ) | - | |||||
Adjusted EBITDA | $ | (898,311 | ) | $ | (1,283,295 | ) | ||
(1) Non-GAAP Financial Measures
In addition to reporting net income, a U.S. generally accepted accounting principle ("GAAP") measure, this news release contains information about Adjusted EBITDA (net income (loss) attributable to Tecogen Inc adjusted for interest, income taxes, depreciation and amortization, stock-based compensation expense, unrealized gain or loss on investment securities, goodwill impairment charges and other non-cash non-recurring charges including abandonment of certain intangible assets and extinguishment of debt), which is a non-GAAP measure. The Company believes Adjusted EBITDA allows investors to view its performance in a manner similar to the methods used by management and provides additional insight into its operating results. Adjusted EBITDA is not calculated through the application of GAAP. Accordingly, it should not be considered as a substitute for the GAAP measure of net income and, therefore, should not be used in isolation of, but in conjunction with, the GAAP measure. The use of any non-GAAP measure may produce results that vary from the GAAP measure and may not be comparable to a similarly defined non-GAAP measure used by other companies.
TECOGEN INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
| Three Months Ended | ||||||||
| March 31, 2024 | March 31, 2023 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Consolidated net loss | $ | (1,087,616 | ) | (1,471,969 | ) | |||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||||
Depreciation and amortization | 140,137 | 105,920 | ||||||
Provision for credit losses | 14,258 | - | ||||||
Stock-based compensation | 44,535 | 77,348 | ||||||
Unrealized gain on investment securities | (18,749 | ) | - | |||||
Gain on disposition of assets | (7,391 | ) | - | |||||
Non-cash interest expense | 6,400 | - | ||||||
Changes in operating assets and liabilities | ||||||||
(Increase) decrease in: | ||||||||
Accounts receivable | 234,095 | (44,238 | ) | |||||
Employee retention credit | - | 667,121 | ||||||
Inventory | 532,418 | (1,380,052 | ) | |||||
Prepaid assets and other current assets | (48,933 | ) | 136,170 | |||||
Other assets | 194,283 | 161,931 | ||||||
Increase (decrease) in: | ||||||||
Accounts payable | (500,516 | ) | 905,509 | |||||
Accrued expenses and other current liabilities | 167,789 | (143,923 | ) | |||||
Deferred revenue | 791,181 | 852,600 | ||||||
Other liabilities | (213,675 | ) | (167,711 | ) | ||||
Net cash provided by (used in) operating activities | 248,216 | (284,866 | ) | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Purchases of property and equipment | (104,952 | ) | - | |||||
Proceeds from disposition of assets | 33,013 | - | ||||||
Net cash used in investing activities | (71,939 | ) | - | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Finance lease principal payments | (17,112 | ) | - | |||||
Net cash provided by financing activities | (17,112 | ) | (17,112 | ) | ||||
Net increase in cash and cash equivalents | 159,165 | (284,866 | ) | |||||
Cash and cash equivalents, beginning of the period | $ | 1,351,270 | 1,913,969 | |||||
Cash and cash equivalents, end of the period | $ | 1,510,435 | $ | 1,629,103 | ||||
Supplemental disclosures of cash flows information: | ||||||||
Cash paid for interest | $ | 11,855 | $ | - | ||||
Cash paid for taxes | $ | 425 | $ | 22,638 | ||||
Non-cash investing activities | ||||||||
Aegis Contract and Related Asset Acquisition: | ||||||||
Contingent consideration | $ | 92,409 | $ | - | ||||
| Last Trade: | US$1.49 |
| Daily Change: | 0.07 4.93 |
| Daily Volume: | 5,861 |
| Market Cap: | US$37.030M |
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