Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Tecogen Announces 2021 Results By: NewMediaWire March 10, 2022 at 09:30 AM EST Net Income of $3.7 million for FY 2021 and $63.0 thousand for Q4 2021 Earnings of $0.15 per share for FY 2021Waltham, MA - (NewMediaWire) - March 10, 2022 - Tecogen Inc. (OTCQX:TGEN), a leading manufacturer of clean energy products, reported net income of $63.0thousand for the quarter ended December 31, 2021 and $3.7 million for the full yearcompared to a net loss of $4.1 million and $6.2 million, respectively, in 2020. This represents an improvement of $4.0 million and $9.8 million respectively. The increase in net income for the quarter was due to improved operations and for the year was helped significantly by the PPP loan forgiveness and Employee Retention Credit. Our gross margin increased to 47.5% for the year ended December 31, 2021 compared to 38.3% for the same period in 2020. The company also generated positive cash flow from operations of $465 thousand in 2021 compared to $1.4 million in 2020. The year end cash balance was $3.6 million. Key TakeawaysEarnings Per Share Net income (loss) per share, basic and diluted, was $0.15/share for FY 2021 and $0.00 per share for Q4 2021 compared to a loss of $0.25 and $0.16 per share for the same periods in 2020.Income from Operations Operating income was $130 thousand for the quarter compared to a loss of $4.1 million during the same period in 2020. The increase in our operating income is due primarily to the increased revenue and margins for our Products Segment and increased revenue from our service contracts in the Services Segment. In the quarter ended December 31, 2021, we also saw no goodwill impairment associated with the ADGE contracts whereas for the same period in 2020 the goodwill impairment amounted to $2.9 million. For the year ended December 31, 2021, our loss from operations was $1.2 million compared to a loss of $6.0 million for the same period in 2020, a decrease of $4.7 million. The decrease in our loss from operations is due primarily to zero goodwill write downs with respect our ADGE energy producing assets and to improved operations in the fourth quarter of 2021. Revenues Revenues for the quarter ended December 31, 2021 were $7.2 million compared to $5.7 million for the same period in 2020, a 26.9% increase. Product revenue was $3.7 million in Q4 2021 compared to $1.9 million in the same period in 2020, an increase of 92.0% primarily due to an increase in chiller sales. Services revenue was $3.1 million in Q4 2021 compared to $3.3 million in the same period in 2020, a decline of 6.2% due to reduced lower margin installation activity. Service contract revenue (O&M revenue)increased to $2.9 million or 16.8% in Q4 2021 from $2.5 million during the same period in 2020. Energy Production revenue decreased by $41.6 thousand, or 9.4%, to $400 thousand in Q4 2021 compared to $441 thousand in the same period in 2020. For the year ended December 31, 2021, revenues were $24.4 million compared to $28.3 million in FY 2020, a decrease of $3.9 million or 13.6% year over year. Product revenue was $10.1 million in the 2021 compared to $11.5 million in FY 2020, a decline of 11.6%, as a result of reduced sales activities in the first half of 2021. Services revenue was $12.5 million for FY 2021 compared to $15.0 million in FY 2020, a decline of 16.2% due to reduced lower margin installation activity. Service contract revenue (O&M revenue)increased 15.0% to $11.6 million for FY 2021 compared to $10.1 million in FY 2020. Energy production revenue for FY 2021 was $1.7 million, compared to $1.8 million in FY 2020, a decrease of 5.3%.Gross ProfitGross profit for the fourth quarter of 2021 was $3.5 million compared to $2.3 million in the fourth quarter of 2020. Gross margin improved to 48.1% in the fourth quarter of 2021 compared to 41.4% for the same period in 2020.Gross profit for FY 2021 was $11.6 million compared to $10.8 million for FY 2020, an increase of 7.0%. For FY 2021 gross margin increased to 47.5% compared to 38.3% for the same period in 2020 due to higher Product and Service margins. Operating Expenses Operating expenses decreased by 48.7% to $3.3 million for the fourth quarter of 2021 compared to $6.5 million in the same period of 2020. Operating expenses were higher in 2020 primarily due to the impairment of long-lived assets and goodwill. For FY 2021 operating expenses decreased $4.0 million, or 23.7%, to $12.8 million compared to $16.8 million for FY 2020. The decrease is due primarily to the impairment of long-lived assets and goodwill recognized in 2020 and, to a lesser extent, operating expense cost controls, resulting in decreased payroll and payroll related expenses and reductions in other operating expenses compared to FY 2020. Adjusted EBITDAwas a positive $284 thousand for the fourth quarter of 2021 compared to a loss of $929 thousand for the fourth quarter of 2020. For the year ended December 31, 2021 adjusted EBITDA was a positive $0.7 million compared to a negative $2.2 million for FY 2020. The FY 2021 adjusted EBITDA benefited from $1.2 million of Employee Retention Credit. (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 equity 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).“We had a significantly improved 4th quarter and year in 2021 compared to 2020,” commented Benjamin Locke, Tecogen's Chief Executive Officer. “As COVID effects recede, our business has started to rebound. We have also been seeing improved sales as a result of our strategic focus on key market segments such as controlled environment agriculture, healthcare and multifamily. Our chiller product in particular has seen significant penetration in the cannabis cultivation space. More than 45% of our current backlog is in this high growth market.” Conference Call Scheduled for March 10, 2022 at 11:00 am ETTecogen will host a conference call on March 10, 2022 to discuss the fourth quarter results beginning at 11:00 am eastern time. To listen to the call please dial (877) 407-7186 within the U.S. and Canada, or (201) 689-8052 from other international locations. Participants should ask to be joined to the Tecogen Fourth Quarter 2021 earnings call. Please begin dialing 10 minutes before the scheduled starting time. The earnings press release will be available on the Company website at http://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 TecogenTecogen 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 3,000 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+, Ilios, Tecochill, Tecopower, Tecofrost, Tecopack and Ultera are registered or pending trademarks of Tecogen Inc.Forward Looking StatementsThis 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 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: Benjamin LockeP: 781-466-6402E: Benjamin.Locke@tecogen.comTECOGEN INC.CONDENSED CONSOLIDATED BALANCE SHEETSAs of December 31, 2021 and 2020 (unaudited)ASSETS2021 2020Current assets: Cash and cash equivalents$ 3,614,463 $ 1,490,219 Accounts receivable, net 8,482,286 8,671,163 Unbilled revenue 3,258,189 4,267,249 Inventory, net 7,764,989 7,168,596 Employee Retention Credit 1,276,021 —Prepaid and other current assets 578,801 597,144 Total current assets 24,974,749 22,194,371 Property, plant and equipment, net 1,782,944 2,283,846 Right of use assets 1,869,210 1,632,574 Intangible assets, net 1,181,023 1,360,319 Goodwill 2,406,156 2,406,156 Other assets 148,140 196,387 TOTAL ASSETS$32,362,222 $30,073,653 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Note payable, current $ — $ 837,861 Accounts payable 3,508,354 4,183,105 Accrued expenses 2,343,728 1,993,471 Deferred revenue 1,957,752 1,294,157 Lease obligations, current 641,002 506,514 Unfavorable contract liabilities, current 330,032 355,665 Total current liabilities 8,780,868 9,170,773 Long-term liabilities: Deferred revenue, net of current portion 208,456 115,329 Note payable, net of current portion — 1,036,339 Lease obligations, long-term 1,315,275 1,222,492 Unfavorable contract liability, long-term 929,474 1,261,386 Total liabilities 11,234,073 12,806,319 Stockholders’ equity: Common stock, $0.001 par value; 100,000,000 shares authorized; 24,850,261 and 24,850,261 issued and outstanding at December 31, 2021 and 2020, respectively 24,850 24,850 Additional paid-in capital 57,016,859 56,814,428 Accumulated deficit (35,833,621) (39,529,621)Total Tecogen Inc. stockholders’ equity 21,208,088 17,309,657 Noncontrolling interest (79,939) (42,323)Total stockholders’ equity 21,128,149 17,267,334 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY$32,362,222 $30,073,653 TECOGEN INC.CONSOLIDATED STATEMENTS OF OPERATIONSFor the Three Months Ended December 31, 2021 and 2020 (unaudited) 2021 2020Revenues Products$ 3,693,349 $ 1,923,400 Services 3,086,891 3,292,418 Energy production 399,702 441,295 Total revenues 7,179,942 5,657,113 Cost of sales Products 1,999,637 1,258,978 Services 1,450,945 1,773,767 Energy production 277,488 281,758 Total cost of sales 3,728,070 3,314,503 Gross profit 3,451,872 2,342,610 Operating expenses General and administrative 2,437,727 2,833,965 Selling 723,971 571,141 Research and Development 161,015 125,707 Gain on sales of assets (400) (32)Long-lived asset impairment — 71,963 Goodwill impairment — 2,875,711 Total operating expenses 3,322,313 6,478,455 Income (loss) from operations 129,559 (4,135,845)Other income (expense) Interest and other income (6,533) (14,432) Interest expense (655) (4,741) Unrealized loss on investment securities (56,246) — Total other expense, net (63,434) (19,173)Income (Loss) before income taxes 66,125 (4,155,018)Income tax provision 500 2,380 Consolidated net income (loss) 65,625 (4,157,398)(Income) loss attributable to the noncontrolling interest (2,659) 95,084 Net income (loss) attributable to Tecogen Inc$ 62,966 $ (4,062,314)Net income (loss) per share - basic$ — $ (0.16)Weighted average shares outstanding - basic 24,850,261 24,850,258 Net income (loss) per share - diluted$ — $ (0.16)Weighted average shares outstanding - diluted 25,063,864 24,850,258 TECOGEN INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONSFor the Three Months Ended December 31, 2021 and 2020 (unaudited)Non-GAAP financial disclosure (1)2021 2020Net income (loss) attributable to Tecogen Inc$ 62,966 $ (4,062,314)Interest expense, net 655 4,741 Provision for income taxes 500 2,380 Depreciation and amortization, net 112,218 120,186 EBITDA 176,339 (3,935,007)Stock-based compensation 51,775 58,632 Unrealized loss on securities 56,246 —Inventory write down — —Long-lived asset impairment — 71,963 Goodwill impairment — 2,875,711 Adjusted EBITDA$ 284,360 $ (928,701)TECOGEN INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONSFor the Years Ended December 31, 2021 and 2020(unaudited) 2021 2020Revenues Products$ 10,133,329 $ 11,466,716Services 12,525,594 14,950,682Energy production 1,739,150 1,837,181Total revenues 24,398,073 28,254,579Cost of sales Products 5,601,046 6,899,942Services 6,134,953 9,357,478Energy production 1,074,421 1,169,645Total cost of sales 12,810,420 17,427,065Gross profit 11,587,653 10,827,514Operating expenses General and administrative 9,795,823 10,311,086Selling 2,471,929 2,593,168Research and development 542,079 767,323Gain on sale of assets (10,486) (11,367)Long-lived asset impairment 7,400 251,906Goodwill impairment — 2,875,711Total operating expenses 12,806,745 16,787,827Loss from operations (1,219,092) (5,960,313)Other income (expense) Interest and other income (23,746) (2,479)Interest expense (14,238) (125,824)Gain on extinguishment of debt 3,773,014 —Employee Retention Credit 1,276,021 —Gain on the sale of investments 6,046 — Unrealized loss on investment securities (37,497) (98,404)Total other income (expense), net 4,979,600 (226,707)Income (loss) before income taxes 3,760,508 (6,187,020)State income tax provision 19,491 30,171Consolidated net income (loss) 3,741,017 (6,217,191)(Income) loss attributable to the noncontrolling interest (45,017) 66,684Net income (loss) attributable to Tecogen Inc.$ 3,696,000 $ (6,150,507)Net income (loss) per share - basic$ 0.15 $ (0.25)Weighted average shares outstanding - basic24,850,261 24,850,258Net income (loss) per share - diluted$ 0.15 $ (0.25)Weighted average shares outstanding -diluted25,115,518 24,850,258TECOGEN INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONSFor the Years Ended December 31, 2021 and 2020(unaudited)Non-GAAP financial disclosure (1)2021 2020Net income (loss) attributable to Tecogen Inc $ 3,696,000 $ (6,150,507)Provision for income taxes 19,491 30,171 Interest expense, net 14,238 125,824 Depreciation and amortization, net 469,854 414,127 EBITDA 4,199,583 (5,580,385)Stock-based compensation 202,431 190,944 Gain on extinguishment of debt (3,773,014) —Unrealized loss on investment securities 31,451 98,404 Goodwill impairment — 2,875,711 Asset impairment 7,400 251,906 Adjusted EBITDA (2)$ 667,851 $ (2,163,420)(1) Non-GAAP Financial MeasuresIn 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.(2)Employee Retention CreditThe adjusted EBITDA in 2021 benefits from $1.2 million of Employee Retention Credit.TECOGEN INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWSFor the Years Ended December 31, 2021 and 2020(unaudited) 2021 2020 CASH FLOWS FROM OPERATING ACTIVITIES: Consolidated net income (loss)$ 3,741,017 $ (6,217,191) Adjustments to reconcile net income (loss) to net cash used provided by activities: Depreciation, accretion and amortization, net 469,854 414,127 Gain on the extinguishment of debt (3,773,014) — Employee Retention Credit (1,276,021) — Long-lived asset impairment 7,400 251,906 Gain on sale of assets (10,486) (11,367) Provision for losses on accounts receivable 131,206 656,397 Gain on the sale of investments (6,046) — Provision for inventory reserve — 86,000 Unrealized loss on investment securities 37,497 98,404 Stock-based compensation 202,431 190,944 Goodwill impairment — 2,875,711 Non-cash interest expense — 51,190 Changes in operating assets and liabilities: (Increase) decrease in: Accounts receivable 57,618 5,555,235 Inventory, net (596,393) (849,367) Unbilled revenue 1,009,060 1,154,562 Prepaid expenses and other current assets 18,343 37,889 Other non-current assets (231,478) 825,817 Increase (decrease) in: Accounts payable (674,750) (1,088,651) Accrued expenses and other current liabilities 602,073 (524,358) Deferred revenue 756,722 (2,100,011) Net cash provided by operating activities 465,033 1,407,237 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property and equipment (91,451) (59,952) Proceeds on sale of property and equipment 10,486 26,335 Purchases of intangible assets (63,097) (123,252) Proceeds from sale of investments 11,637 — Distributions to non-controlling interest (82,633) (60,896) Net used in investing activities (215,058) (217,765) CASH FLOWS FROM FINANCING ACTIVITIES: Payments on revolving line of credit, net — (2,452,329) Proceeds from note payable 1,874,269 1,874,200 Proceeds from exercise of stock options — 1,200 Net cash provided by (used in) financing activities 1,874,269 (576,929) Change in cash and cash equivalents 2,124,244 612,543 Cash and cash equivalents, beginning of the year 1,490,219 877,676 Cash and cash equivalents, end of the year$ 3,614,463 $ 1,490,219 Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. 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Tecogen Announces 2021 Results By: NewMediaWire March 10, 2022 at 09:30 AM EST Net Income of $3.7 million for FY 2021 and $63.0 thousand for Q4 2021 Earnings of $0.15 per share for FY 2021Waltham, MA - (NewMediaWire) - March 10, 2022 - Tecogen Inc. (OTCQX:TGEN), a leading manufacturer of clean energy products, reported net income of $63.0thousand for the quarter ended December 31, 2021 and $3.7 million for the full yearcompared to a net loss of $4.1 million and $6.2 million, respectively, in 2020. This represents an improvement of $4.0 million and $9.8 million respectively. The increase in net income for the quarter was due to improved operations and for the year was helped significantly by the PPP loan forgiveness and Employee Retention Credit. Our gross margin increased to 47.5% for the year ended December 31, 2021 compared to 38.3% for the same period in 2020. The company also generated positive cash flow from operations of $465 thousand in 2021 compared to $1.4 million in 2020. The year end cash balance was $3.6 million. Key TakeawaysEarnings Per Share Net income (loss) per share, basic and diluted, was $0.15/share for FY 2021 and $0.00 per share for Q4 2021 compared to a loss of $0.25 and $0.16 per share for the same periods in 2020.Income from Operations Operating income was $130 thousand for the quarter compared to a loss of $4.1 million during the same period in 2020. The increase in our operating income is due primarily to the increased revenue and margins for our Products Segment and increased revenue from our service contracts in the Services Segment. In the quarter ended December 31, 2021, we also saw no goodwill impairment associated with the ADGE contracts whereas for the same period in 2020 the goodwill impairment amounted to $2.9 million. For the year ended December 31, 2021, our loss from operations was $1.2 million compared to a loss of $6.0 million for the same period in 2020, a decrease of $4.7 million. The decrease in our loss from operations is due primarily to zero goodwill write downs with respect our ADGE energy producing assets and to improved operations in the fourth quarter of 2021. Revenues Revenues for the quarter ended December 31, 2021 were $7.2 million compared to $5.7 million for the same period in 2020, a 26.9% increase. Product revenue was $3.7 million in Q4 2021 compared to $1.9 million in the same period in 2020, an increase of 92.0% primarily due to an increase in chiller sales. Services revenue was $3.1 million in Q4 2021 compared to $3.3 million in the same period in 2020, a decline of 6.2% due to reduced lower margin installation activity. Service contract revenue (O&M revenue)increased to $2.9 million or 16.8% in Q4 2021 from $2.5 million during the same period in 2020. Energy Production revenue decreased by $41.6 thousand, or 9.4%, to $400 thousand in Q4 2021 compared to $441 thousand in the same period in 2020. For the year ended December 31, 2021, revenues were $24.4 million compared to $28.3 million in FY 2020, a decrease of $3.9 million or 13.6% year over year. Product revenue was $10.1 million in the 2021 compared to $11.5 million in FY 2020, a decline of 11.6%, as a result of reduced sales activities in the first half of 2021. Services revenue was $12.5 million for FY 2021 compared to $15.0 million in FY 2020, a decline of 16.2% due to reduced lower margin installation activity. Service contract revenue (O&M revenue)increased 15.0% to $11.6 million for FY 2021 compared to $10.1 million in FY 2020. Energy production revenue for FY 2021 was $1.7 million, compared to $1.8 million in FY 2020, a decrease of 5.3%.Gross ProfitGross profit for the fourth quarter of 2021 was $3.5 million compared to $2.3 million in the fourth quarter of 2020. Gross margin improved to 48.1% in the fourth quarter of 2021 compared to 41.4% for the same period in 2020.Gross profit for FY 2021 was $11.6 million compared to $10.8 million for FY 2020, an increase of 7.0%. For FY 2021 gross margin increased to 47.5% compared to 38.3% for the same period in 2020 due to higher Product and Service margins. Operating Expenses Operating expenses decreased by 48.7% to $3.3 million for the fourth quarter of 2021 compared to $6.5 million in the same period of 2020. Operating expenses were higher in 2020 primarily due to the impairment of long-lived assets and goodwill. For FY 2021 operating expenses decreased $4.0 million, or 23.7%, to $12.8 million compared to $16.8 million for FY 2020. The decrease is due primarily to the impairment of long-lived assets and goodwill recognized in 2020 and, to a lesser extent, operating expense cost controls, resulting in decreased payroll and payroll related expenses and reductions in other operating expenses compared to FY 2020. Adjusted EBITDAwas a positive $284 thousand for the fourth quarter of 2021 compared to a loss of $929 thousand for the fourth quarter of 2020. For the year ended December 31, 2021 adjusted EBITDA was a positive $0.7 million compared to a negative $2.2 million for FY 2020. The FY 2021 adjusted EBITDA benefited from $1.2 million of Employee Retention Credit. (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 equity 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).“We had a significantly improved 4th quarter and year in 2021 compared to 2020,” commented Benjamin Locke, Tecogen's Chief Executive Officer. “As COVID effects recede, our business has started to rebound. We have also been seeing improved sales as a result of our strategic focus on key market segments such as controlled environment agriculture, healthcare and multifamily. Our chiller product in particular has seen significant penetration in the cannabis cultivation space. More than 45% of our current backlog is in this high growth market.” Conference Call Scheduled for March 10, 2022 at 11:00 am ETTecogen will host a conference call on March 10, 2022 to discuss the fourth quarter results beginning at 11:00 am eastern time. To listen to the call please dial (877) 407-7186 within the U.S. and Canada, or (201) 689-8052 from other international locations. Participants should ask to be joined to the Tecogen Fourth Quarter 2021 earnings call. Please begin dialing 10 minutes before the scheduled starting time. The earnings press release will be available on the Company website at http://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 TecogenTecogen 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 3,000 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+, Ilios, Tecochill, Tecopower, Tecofrost, Tecopack and Ultera are registered or pending trademarks of Tecogen Inc.Forward Looking StatementsThis 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 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: Benjamin LockeP: 781-466-6402E: Benjamin.Locke@tecogen.comTECOGEN INC.CONDENSED CONSOLIDATED BALANCE SHEETSAs of December 31, 2021 and 2020 (unaudited)ASSETS2021 2020Current assets: Cash and cash equivalents$ 3,614,463 $ 1,490,219 Accounts receivable, net 8,482,286 8,671,163 Unbilled revenue 3,258,189 4,267,249 Inventory, net 7,764,989 7,168,596 Employee Retention Credit 1,276,021 —Prepaid and other current assets 578,801 597,144 Total current assets 24,974,749 22,194,371 Property, plant and equipment, net 1,782,944 2,283,846 Right of use assets 1,869,210 1,632,574 Intangible assets, net 1,181,023 1,360,319 Goodwill 2,406,156 2,406,156 Other assets 148,140 196,387 TOTAL ASSETS$32,362,222 $30,073,653 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Note payable, current $ — $ 837,861 Accounts payable 3,508,354 4,183,105 Accrued expenses 2,343,728 1,993,471 Deferred revenue 1,957,752 1,294,157 Lease obligations, current 641,002 506,514 Unfavorable contract liabilities, current 330,032 355,665 Total current liabilities 8,780,868 9,170,773 Long-term liabilities: Deferred revenue, net of current portion 208,456 115,329 Note payable, net of current portion — 1,036,339 Lease obligations, long-term 1,315,275 1,222,492 Unfavorable contract liability, long-term 929,474 1,261,386 Total liabilities 11,234,073 12,806,319 Stockholders’ equity: Common stock, $0.001 par value; 100,000,000 shares authorized; 24,850,261 and 24,850,261 issued and outstanding at December 31, 2021 and 2020, respectively 24,850 24,850 Additional paid-in capital 57,016,859 56,814,428 Accumulated deficit (35,833,621) (39,529,621)Total Tecogen Inc. stockholders’ equity 21,208,088 17,309,657 Noncontrolling interest (79,939) (42,323)Total stockholders’ equity 21,128,149 17,267,334 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY$32,362,222 $30,073,653 TECOGEN INC.CONSOLIDATED STATEMENTS OF OPERATIONSFor the Three Months Ended December 31, 2021 and 2020 (unaudited) 2021 2020Revenues Products$ 3,693,349 $ 1,923,400 Services 3,086,891 3,292,418 Energy production 399,702 441,295 Total revenues 7,179,942 5,657,113 Cost of sales Products 1,999,637 1,258,978 Services 1,450,945 1,773,767 Energy production 277,488 281,758 Total cost of sales 3,728,070 3,314,503 Gross profit 3,451,872 2,342,610 Operating expenses General and administrative 2,437,727 2,833,965 Selling 723,971 571,141 Research and Development 161,015 125,707 Gain on sales of assets (400) (32)Long-lived asset impairment — 71,963 Goodwill impairment — 2,875,711 Total operating expenses 3,322,313 6,478,455 Income (loss) from operations 129,559 (4,135,845)Other income (expense) Interest and other income (6,533) (14,432) Interest expense (655) (4,741) Unrealized loss on investment securities (56,246) — Total other expense, net (63,434) (19,173)Income (Loss) before income taxes 66,125 (4,155,018)Income tax provision 500 2,380 Consolidated net income (loss) 65,625 (4,157,398)(Income) loss attributable to the noncontrolling interest (2,659) 95,084 Net income (loss) attributable to Tecogen Inc$ 62,966 $ (4,062,314)Net income (loss) per share - basic$ — $ (0.16)Weighted average shares outstanding - basic 24,850,261 24,850,258 Net income (loss) per share - diluted$ — $ (0.16)Weighted average shares outstanding - diluted 25,063,864 24,850,258 TECOGEN INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONSFor the Three Months Ended December 31, 2021 and 2020 (unaudited)Non-GAAP financial disclosure (1)2021 2020Net income (loss) attributable to Tecogen Inc$ 62,966 $ (4,062,314)Interest expense, net 655 4,741 Provision for income taxes 500 2,380 Depreciation and amortization, net 112,218 120,186 EBITDA 176,339 (3,935,007)Stock-based compensation 51,775 58,632 Unrealized loss on securities 56,246 —Inventory write down — —Long-lived asset impairment — 71,963 Goodwill impairment — 2,875,711 Adjusted EBITDA$ 284,360 $ (928,701)TECOGEN INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONSFor the Years Ended December 31, 2021 and 2020(unaudited) 2021 2020Revenues Products$ 10,133,329 $ 11,466,716Services 12,525,594 14,950,682Energy production 1,739,150 1,837,181Total revenues 24,398,073 28,254,579Cost of sales Products 5,601,046 6,899,942Services 6,134,953 9,357,478Energy production 1,074,421 1,169,645Total cost of sales 12,810,420 17,427,065Gross profit 11,587,653 10,827,514Operating expenses General and administrative 9,795,823 10,311,086Selling 2,471,929 2,593,168Research and development 542,079 767,323Gain on sale of assets (10,486) (11,367)Long-lived asset impairment 7,400 251,906Goodwill impairment — 2,875,711Total operating expenses 12,806,745 16,787,827Loss from operations (1,219,092) (5,960,313)Other income (expense) Interest and other income (23,746) (2,479)Interest expense (14,238) (125,824)Gain on extinguishment of debt 3,773,014 —Employee Retention Credit 1,276,021 —Gain on the sale of investments 6,046 — Unrealized loss on investment securities (37,497) (98,404)Total other income (expense), net 4,979,600 (226,707)Income (loss) before income taxes 3,760,508 (6,187,020)State income tax provision 19,491 30,171Consolidated net income (loss) 3,741,017 (6,217,191)(Income) loss attributable to the noncontrolling interest (45,017) 66,684Net income (loss) attributable to Tecogen Inc.$ 3,696,000 $ (6,150,507)Net income (loss) per share - basic$ 0.15 $ (0.25)Weighted average shares outstanding - basic24,850,261 24,850,258Net income (loss) per share - diluted$ 0.15 $ (0.25)Weighted average shares outstanding -diluted25,115,518 24,850,258TECOGEN INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONSFor the Years Ended December 31, 2021 and 2020(unaudited)Non-GAAP financial disclosure (1)2021 2020Net income (loss) attributable to Tecogen Inc $ 3,696,000 $ (6,150,507)Provision for income taxes 19,491 30,171 Interest expense, net 14,238 125,824 Depreciation and amortization, net 469,854 414,127 EBITDA 4,199,583 (5,580,385)Stock-based compensation 202,431 190,944 Gain on extinguishment of debt (3,773,014) —Unrealized loss on investment securities 31,451 98,404 Goodwill impairment — 2,875,711 Asset impairment 7,400 251,906 Adjusted EBITDA (2)$ 667,851 $ (2,163,420)(1) Non-GAAP Financial MeasuresIn 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.(2)Employee Retention CreditThe adjusted EBITDA in 2021 benefits from $1.2 million of Employee Retention Credit.TECOGEN INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWSFor the Years Ended December 31, 2021 and 2020(unaudited) 2021 2020 CASH FLOWS FROM OPERATING ACTIVITIES: Consolidated net income (loss)$ 3,741,017 $ (6,217,191) Adjustments to reconcile net income (loss) to net cash used provided by activities: Depreciation, accretion and amortization, net 469,854 414,127 Gain on the extinguishment of debt (3,773,014) — Employee Retention Credit (1,276,021) — Long-lived asset impairment 7,400 251,906 Gain on sale of assets (10,486) (11,367) Provision for losses on accounts receivable 131,206 656,397 Gain on the sale of investments (6,046) — Provision for inventory reserve — 86,000 Unrealized loss on investment securities 37,497 98,404 Stock-based compensation 202,431 190,944 Goodwill impairment — 2,875,711 Non-cash interest expense — 51,190 Changes in operating assets and liabilities: (Increase) decrease in: Accounts receivable 57,618 5,555,235 Inventory, net (596,393) (849,367) Unbilled revenue 1,009,060 1,154,562 Prepaid expenses and other current assets 18,343 37,889 Other non-current assets (231,478) 825,817 Increase (decrease) in: Accounts payable (674,750) (1,088,651) Accrued expenses and other current liabilities 602,073 (524,358) Deferred revenue 756,722 (2,100,011) Net cash provided by operating activities 465,033 1,407,237 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property and equipment (91,451) (59,952) Proceeds on sale of property and equipment 10,486 26,335 Purchases of intangible assets (63,097) (123,252) Proceeds from sale of investments 11,637 — Distributions to non-controlling interest (82,633) (60,896) Net used in investing activities (215,058) (217,765) CASH FLOWS FROM FINANCING ACTIVITIES: Payments on revolving line of credit, net — (2,452,329) Proceeds from note payable 1,874,269 1,874,200 Proceeds from exercise of stock options — 1,200 Net cash provided by (used in) financing activities 1,874,269 (576,929) Change in cash and cash equivalents 2,124,244 612,543 Cash and cash equivalents, beginning of the year 1,490,219 877,676 Cash and cash equivalents, end of the year$ 3,614,463 $ 1,490,219
Net Income of $3.7 million for FY 2021 and $63.0 thousand for Q4 2021 Earnings of $0.15 per share for FY 2021Waltham, MA - (NewMediaWire) - March 10, 2022 - Tecogen Inc. (OTCQX:TGEN), a leading manufacturer of clean energy products, reported net income of $63.0thousand for the quarter ended December 31, 2021 and $3.7 million for the full yearcompared to a net loss of $4.1 million and $6.2 million, respectively, in 2020. This represents an improvement of $4.0 million and $9.8 million respectively. The increase in net income for the quarter was due to improved operations and for the year was helped significantly by the PPP loan forgiveness and Employee Retention Credit. Our gross margin increased to 47.5% for the year ended December 31, 2021 compared to 38.3% for the same period in 2020. The company also generated positive cash flow from operations of $465 thousand in 2021 compared to $1.4 million in 2020. The year end cash balance was $3.6 million. Key TakeawaysEarnings Per Share Net income (loss) per share, basic and diluted, was $0.15/share for FY 2021 and $0.00 per share for Q4 2021 compared to a loss of $0.25 and $0.16 per share for the same periods in 2020.Income from Operations Operating income was $130 thousand for the quarter compared to a loss of $4.1 million during the same period in 2020. The increase in our operating income is due primarily to the increased revenue and margins for our Products Segment and increased revenue from our service contracts in the Services Segment. In the quarter ended December 31, 2021, we also saw no goodwill impairment associated with the ADGE contracts whereas for the same period in 2020 the goodwill impairment amounted to $2.9 million. For the year ended December 31, 2021, our loss from operations was $1.2 million compared to a loss of $6.0 million for the same period in 2020, a decrease of $4.7 million. The decrease in our loss from operations is due primarily to zero goodwill write downs with respect our ADGE energy producing assets and to improved operations in the fourth quarter of 2021. Revenues Revenues for the quarter ended December 31, 2021 were $7.2 million compared to $5.7 million for the same period in 2020, a 26.9% increase. Product revenue was $3.7 million in Q4 2021 compared to $1.9 million in the same period in 2020, an increase of 92.0% primarily due to an increase in chiller sales. Services revenue was $3.1 million in Q4 2021 compared to $3.3 million in the same period in 2020, a decline of 6.2% due to reduced lower margin installation activity. Service contract revenue (O&M revenue)increased to $2.9 million or 16.8% in Q4 2021 from $2.5 million during the same period in 2020. Energy Production revenue decreased by $41.6 thousand, or 9.4%, to $400 thousand in Q4 2021 compared to $441 thousand in the same period in 2020. For the year ended December 31, 2021, revenues were $24.4 million compared to $28.3 million in FY 2020, a decrease of $3.9 million or 13.6% year over year. Product revenue was $10.1 million in the 2021 compared to $11.5 million in FY 2020, a decline of 11.6%, as a result of reduced sales activities in the first half of 2021. Services revenue was $12.5 million for FY 2021 compared to $15.0 million in FY 2020, a decline of 16.2% due to reduced lower margin installation activity. Service contract revenue (O&M revenue)increased 15.0% to $11.6 million for FY 2021 compared to $10.1 million in FY 2020. Energy production revenue for FY 2021 was $1.7 million, compared to $1.8 million in FY 2020, a decrease of 5.3%.Gross ProfitGross profit for the fourth quarter of 2021 was $3.5 million compared to $2.3 million in the fourth quarter of 2020. Gross margin improved to 48.1% in the fourth quarter of 2021 compared to 41.4% for the same period in 2020.Gross profit for FY 2021 was $11.6 million compared to $10.8 million for FY 2020, an increase of 7.0%. For FY 2021 gross margin increased to 47.5% compared to 38.3% for the same period in 2020 due to higher Product and Service margins. Operating Expenses Operating expenses decreased by 48.7% to $3.3 million for the fourth quarter of 2021 compared to $6.5 million in the same period of 2020. Operating expenses were higher in 2020 primarily due to the impairment of long-lived assets and goodwill. For FY 2021 operating expenses decreased $4.0 million, or 23.7%, to $12.8 million compared to $16.8 million for FY 2020. The decrease is due primarily to the impairment of long-lived assets and goodwill recognized in 2020 and, to a lesser extent, operating expense cost controls, resulting in decreased payroll and payroll related expenses and reductions in other operating expenses compared to FY 2020. Adjusted EBITDAwas a positive $284 thousand for the fourth quarter of 2021 compared to a loss of $929 thousand for the fourth quarter of 2020. For the year ended December 31, 2021 adjusted EBITDA was a positive $0.7 million compared to a negative $2.2 million for FY 2020. The FY 2021 adjusted EBITDA benefited from $1.2 million of Employee Retention Credit. (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 equity 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).“We had a significantly improved 4th quarter and year in 2021 compared to 2020,” commented Benjamin Locke, Tecogen's Chief Executive Officer. “As COVID effects recede, our business has started to rebound. We have also been seeing improved sales as a result of our strategic focus on key market segments such as controlled environment agriculture, healthcare and multifamily. Our chiller product in particular has seen significant penetration in the cannabis cultivation space. More than 45% of our current backlog is in this high growth market.” Conference Call Scheduled for March 10, 2022 at 11:00 am ETTecogen will host a conference call on March 10, 2022 to discuss the fourth quarter results beginning at 11:00 am eastern time. To listen to the call please dial (877) 407-7186 within the U.S. and Canada, or (201) 689-8052 from other international locations. Participants should ask to be joined to the Tecogen Fourth Quarter 2021 earnings call. Please begin dialing 10 minutes before the scheduled starting time. The earnings press release will be available on the Company website at http://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 TecogenTecogen 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 3,000 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+, Ilios, Tecochill, Tecopower, Tecofrost, Tecopack and Ultera are registered or pending trademarks of Tecogen Inc.Forward Looking StatementsThis 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 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: Benjamin LockeP: 781-466-6402E: Benjamin.Locke@tecogen.comTECOGEN INC.CONDENSED CONSOLIDATED BALANCE SHEETSAs of December 31, 2021 and 2020 (unaudited)ASSETS2021 2020Current assets: Cash and cash equivalents$ 3,614,463 $ 1,490,219 Accounts receivable, net 8,482,286 8,671,163 Unbilled revenue 3,258,189 4,267,249 Inventory, net 7,764,989 7,168,596 Employee Retention Credit 1,276,021 —Prepaid and other current assets 578,801 597,144 Total current assets 24,974,749 22,194,371 Property, plant and equipment, net 1,782,944 2,283,846 Right of use assets 1,869,210 1,632,574 Intangible assets, net 1,181,023 1,360,319 Goodwill 2,406,156 2,406,156 Other assets 148,140 196,387 TOTAL ASSETS$32,362,222 $30,073,653 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Note payable, current $ — $ 837,861 Accounts payable 3,508,354 4,183,105 Accrued expenses 2,343,728 1,993,471 Deferred revenue 1,957,752 1,294,157 Lease obligations, current 641,002 506,514 Unfavorable contract liabilities, current 330,032 355,665 Total current liabilities 8,780,868 9,170,773 Long-term liabilities: Deferred revenue, net of current portion 208,456 115,329 Note payable, net of current portion — 1,036,339 Lease obligations, long-term 1,315,275 1,222,492 Unfavorable contract liability, long-term 929,474 1,261,386 Total liabilities 11,234,073 12,806,319 Stockholders’ equity: Common stock, $0.001 par value; 100,000,000 shares authorized; 24,850,261 and 24,850,261 issued and outstanding at December 31, 2021 and 2020, respectively 24,850 24,850 Additional paid-in capital 57,016,859 56,814,428 Accumulated deficit (35,833,621) (39,529,621)Total Tecogen Inc. stockholders’ equity 21,208,088 17,309,657 Noncontrolling interest (79,939) (42,323)Total stockholders’ equity 21,128,149 17,267,334 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY$32,362,222 $30,073,653 TECOGEN INC.CONSOLIDATED STATEMENTS OF OPERATIONSFor the Three Months Ended December 31, 2021 and 2020 (unaudited) 2021 2020Revenues Products$ 3,693,349 $ 1,923,400 Services 3,086,891 3,292,418 Energy production 399,702 441,295 Total revenues 7,179,942 5,657,113 Cost of sales Products 1,999,637 1,258,978 Services 1,450,945 1,773,767 Energy production 277,488 281,758 Total cost of sales 3,728,070 3,314,503 Gross profit 3,451,872 2,342,610 Operating expenses General and administrative 2,437,727 2,833,965 Selling 723,971 571,141 Research and Development 161,015 125,707 Gain on sales of assets (400) (32)Long-lived asset impairment — 71,963 Goodwill impairment — 2,875,711 Total operating expenses 3,322,313 6,478,455 Income (loss) from operations 129,559 (4,135,845)Other income (expense) Interest and other income (6,533) (14,432) Interest expense (655) (4,741) Unrealized loss on investment securities (56,246) — Total other expense, net (63,434) (19,173)Income (Loss) before income taxes 66,125 (4,155,018)Income tax provision 500 2,380 Consolidated net income (loss) 65,625 (4,157,398)(Income) loss attributable to the noncontrolling interest (2,659) 95,084 Net income (loss) attributable to Tecogen Inc$ 62,966 $ (4,062,314)Net income (loss) per share - basic$ — $ (0.16)Weighted average shares outstanding - basic 24,850,261 24,850,258 Net income (loss) per share - diluted$ — $ (0.16)Weighted average shares outstanding - diluted 25,063,864 24,850,258 TECOGEN INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONSFor the Three Months Ended December 31, 2021 and 2020 (unaudited)Non-GAAP financial disclosure (1)2021 2020Net income (loss) attributable to Tecogen Inc$ 62,966 $ (4,062,314)Interest expense, net 655 4,741 Provision for income taxes 500 2,380 Depreciation and amortization, net 112,218 120,186 EBITDA 176,339 (3,935,007)Stock-based compensation 51,775 58,632 Unrealized loss on securities 56,246 —Inventory write down — —Long-lived asset impairment — 71,963 Goodwill impairment — 2,875,711 Adjusted EBITDA$ 284,360 $ (928,701)TECOGEN INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONSFor the Years Ended December 31, 2021 and 2020(unaudited) 2021 2020Revenues Products$ 10,133,329 $ 11,466,716Services 12,525,594 14,950,682Energy production 1,739,150 1,837,181Total revenues 24,398,073 28,254,579Cost of sales Products 5,601,046 6,899,942Services 6,134,953 9,357,478Energy production 1,074,421 1,169,645Total cost of sales 12,810,420 17,427,065Gross profit 11,587,653 10,827,514Operating expenses General and administrative 9,795,823 10,311,086Selling 2,471,929 2,593,168Research and development 542,079 767,323Gain on sale of assets (10,486) (11,367)Long-lived asset impairment 7,400 251,906Goodwill impairment — 2,875,711Total operating expenses 12,806,745 16,787,827Loss from operations (1,219,092) (5,960,313)Other income (expense) Interest and other income (23,746) (2,479)Interest expense (14,238) (125,824)Gain on extinguishment of debt 3,773,014 —Employee Retention Credit 1,276,021 —Gain on the sale of investments 6,046 — Unrealized loss on investment securities (37,497) (98,404)Total other income (expense), net 4,979,600 (226,707)Income (loss) before income taxes 3,760,508 (6,187,020)State income tax provision 19,491 30,171Consolidated net income (loss) 3,741,017 (6,217,191)(Income) loss attributable to the noncontrolling interest (45,017) 66,684Net income (loss) attributable to Tecogen Inc.$ 3,696,000 $ (6,150,507)Net income (loss) per share - basic$ 0.15 $ (0.25)Weighted average shares outstanding - basic24,850,261 24,850,258Net income (loss) per share - diluted$ 0.15 $ (0.25)Weighted average shares outstanding -diluted25,115,518 24,850,258TECOGEN INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONSFor the Years Ended December 31, 2021 and 2020(unaudited)Non-GAAP financial disclosure (1)2021 2020Net income (loss) attributable to Tecogen Inc $ 3,696,000 $ (6,150,507)Provision for income taxes 19,491 30,171 Interest expense, net 14,238 125,824 Depreciation and amortization, net 469,854 414,127 EBITDA 4,199,583 (5,580,385)Stock-based compensation 202,431 190,944 Gain on extinguishment of debt (3,773,014) —Unrealized loss on investment securities 31,451 98,404 Goodwill impairment — 2,875,711 Asset impairment 7,400 251,906 Adjusted EBITDA (2)$ 667,851 $ (2,163,420)(1) Non-GAAP Financial MeasuresIn 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.(2)Employee Retention CreditThe adjusted EBITDA in 2021 benefits from $1.2 million of Employee Retention Credit.TECOGEN INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWSFor the Years Ended December 31, 2021 and 2020(unaudited) 2021 2020 CASH FLOWS FROM OPERATING ACTIVITIES: Consolidated net income (loss)$ 3,741,017 $ (6,217,191) Adjustments to reconcile net income (loss) to net cash used provided by activities: Depreciation, accretion and amortization, net 469,854 414,127 Gain on the extinguishment of debt (3,773,014) — Employee Retention Credit (1,276,021) — Long-lived asset impairment 7,400 251,906 Gain on sale of assets (10,486) (11,367) Provision for losses on accounts receivable 131,206 656,397 Gain on the sale of investments (6,046) — Provision for inventory reserve — 86,000 Unrealized loss on investment securities 37,497 98,404 Stock-based compensation 202,431 190,944 Goodwill impairment — 2,875,711 Non-cash interest expense — 51,190 Changes in operating assets and liabilities: (Increase) decrease in: Accounts receivable 57,618 5,555,235 Inventory, net (596,393) (849,367) Unbilled revenue 1,009,060 1,154,562 Prepaid expenses and other current assets 18,343 37,889 Other non-current assets (231,478) 825,817 Increase (decrease) in: Accounts payable (674,750) (1,088,651) Accrued expenses and other current liabilities 602,073 (524,358) Deferred revenue 756,722 (2,100,011) Net cash provided by operating activities 465,033 1,407,237 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property and equipment (91,451) (59,952) Proceeds on sale of property and equipment 10,486 26,335 Purchases of intangible assets (63,097) (123,252) Proceeds from sale of investments 11,637 — Distributions to non-controlling interest (82,633) (60,896) Net used in investing activities (215,058) (217,765) CASH FLOWS FROM FINANCING ACTIVITIES: Payments on revolving line of credit, net — (2,452,329) Proceeds from note payable 1,874,269 1,874,200 Proceeds from exercise of stock options — 1,200 Net cash provided by (used in) financing activities 1,874,269 (576,929) Change in cash and cash equivalents 2,124,244 612,543 Cash and cash equivalents, beginning of the year 1,490,219 877,676 Cash and cash equivalents, end of the year$ 3,614,463 $ 1,490,219
