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 2022 Results By: NewMediaWire March 16, 2023 at 09:30 AM EDT Revenue of $25.0 million for FY 2022 up 2.5% compared to FY 2021 Waltham, MA - (NewMediaWire) - March 16, 2023 - Tecogen Inc. (OTCQX:TGEN), a leading manufacturer of clean energy products, reported a net loss of $1.4 million for the quarter ended December 31, 2022 and $2.4 million for the full year compared to net income of $0.1 million and $3.7 million, respectively, in 2021. The decrease in net income was due to lower gross profit and increased operating expenses in 2022, and the impact of the PPP loan forgiveness and Employee Retention Credit in 2021. Our gross margin decreased to 44.3% for the year ended December 31, 2022 compared to 47.5% for the same period in 2021. The year-end cash balance was $1.9 million and no debt. Key TakeawaysEarnings Per ShareNet income (loss) per share, basic and diluted, was $(0.10) per share for FY 2022 and $(0.06) per share for Q4 2022 compared to income of $0.15 and $0.00 per share for the same periods in 2021.Income from OperationsOperating loss was $1.4 million for the quarter compared to an operating profit of $0.1 million during the same period in 2021. The increase in our operating loss is due primarily to decreased revenue and margins for our Products Segment and increased operating expenses. For the year ended December 31, 2022, our loss from operations was $2.3 million compared to a loss of $1.2 million for the same period in 2021, an increase of $1.1 million. The increase in our loss from operations is due to the lower product margins in 2022 compared to 2021 due to higher material costs and, increased operating expenses. RevenuesRevenues for the quarter ended December 31, 2022 were $4.5 million compared to $7.2 million for the same period in 2021, a 36.9% decrease. Product revenue was $1.0 million in Q4 2022 compared to $3.7 million in the same period in 2021, a decrease of 72.9% primarily due to a decrease in both cogeneration and chiller sales. Services revenue was $3.0 million in Q4 2022 compared to $3.1 million in the same period in 2021, a decline of 2.3% due to reduced lower margin installation activity. Service contract revenue (O&M revenue) remained flat at $3.0 million. Energy Production revenue increased by $117.5 thousand, or 29.4%, to $517 thousand in Q4 2022 compared to $400 thousand in the same period in 2021. For the year ended December 31, 2022, revenues were $25.0 million compared to $24.4 million in FY 2021, an increase of $0.6 million or 2.5% year over year.Product revenue was $11.2 million in the 2022 compared to $10.1 million in FY 2021, an increase of 10.1%. Services revenue was $12.1 million for FY 2022 compared to $12.5 million in FY 2021, a decline of 3.7% due to reduced lower margin installation activity. Service contract revenue (O&M revenue) increased 4.1% to $12.1 million for FY 2022 compared to $11.6 million in FY 2021.Energy production revenue for FY 2022 was $1.8 million, compared to $1.7 million in FY 2021, an increase of 2.7%.Gross ProfitGross profit for the fourth quarter of 2022 was $2.4 million compared to $3.5 million in the fourth quarter of 2021. Gross margin improved to 52.5% in the fourth quarter of 2022 compared to 48.1% for the same period in 2021. The decrease in product sales in the quarter resulted in a larger proportion of revenues from higher margin O&M service activities. Gross profit for FY 2022 was $11.1 million compared to $11.6 million for FY 2021, a decrease of 4.5%. For FY 2022 gross margin decreased to 44.3% compared to 47.5% for the same period in 2021 due to higher cost of materials. Operating ExpensesOperating expenses increased by 13.7% to $3.8 million for the fourth quarter of 2022 compared to $3.3 million in the same period of 2021. Operating expenses were higher in Q4 2022 primarily due to an overall increased in administrative costs, the impairment of long-lived assets, an increase in reserves for bad debt, a litigation provision, and increased R&D expenses associated with the development of the air-cooled chiller.For FY 2022 operating expenses increased $0.6 million, or 4.8%, to $13.4 million compared to $12.8 million for FY 2021. Operating expenses were higher in 2022 primarily due to an overall increase in administrative costs, a litigation provision, and increased R&D expenses associated with the development of the air-cooled chiller.Adjusted EBITDA loss was $1,146 thousand for the fourth quarter of 2022 compared to income of $284 thousand for the fourth quarter. Operating expenses were higher in 2022 primarily due to an overall increase in administrative costs, the impairment of long-lived assets, an increase in reserves for bad debt, a litigation provision and increased R&D expenses associated with the development of the air-cooled chiller. For the year ended December 31, 2022 adjusted EBITDA loss was $1.7 million compared to EBITDA income of $0.7 million for FY 2021. The FY 2021 adjusted EBITDA benefited from the recognition of the $1.2 million in 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).“In the last month as CEO of Tecogen we have been implementing some significant strategic initiatives that we expect to bear fruit over the coming year,” commented Abinand Rangesh, Tecogen's Chief Executive Officer. “We recently launched the hybrid air-cooled chiller at AHR 2023, which is the largest HVAC trade show in North America. It was well received with significant interest from a variety of parties. Additional color and a discussion of our strategic direction for 2023 and beyond will be discussed in our earnings call.”Conference Call Scheduled for March 16, 2023 at 11:00 am ETTecogen will host a conference call on March 16, 2023 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 FY 2022 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 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 3,150 units, supported by an established network of engineering, sales, and service personnel across the United States. Aggregate run hours on Tecogen’s InVerde e+ cogeneration systems exceeds 5 million hours. 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: Abinand RangeshP: 781-466-6487E: abinand.Rangesh@tecogen.comTecogen Inc.CONDENSED CONSOLIDATED BALANCE SHEETSAs of December 31, 2022 and 2021 (unaudited)ASSETS2022 2021Current assets: Cash and cash equivalents$ 1,913,969 $ 3,614,463Accounts receivable, net 6,714,122 8,482,286Employee retention credit receivable 713,269 1,276,021Unbilled revenue 1,805,330 3,258,189Inventory, net 10,482,729 7,764,989Prepaid and other current assets 401,189 578,801Total current assets 22,030,608 24,974,749Property, plant and equipment, net 1,407,720 1,782,944Right of use assets 1,245,549 1,869,210Intangible assets, net 997,594 1,181,023Goodwill 2,406,156 2,406,156Other assets 165,230 148,140TOTAL ASSETS$28,252,857 $32,362,222LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable$ 3,261,952 $ 3,508,354Accrued expenses 2,384,447 2,343,728Deferred revenue 1,115,627 1,957,752Lease obligations 687,589 641,002Unfavorable contract liabilities 236,705 330,032Total current liabilities 7,686,320 8,780,868Long-term liabilities: Deferred revenue, net of current portion 371,823 208,456Lease obligations, net of current portion 623,452 1,315,275Unfavorable contract liability, net of current portion 583,512 929,474Total liabilities 9,265,107 11,234,073Stockholders’ 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, 2022 and 2021, respectively 24,850 24,850Additional paid-in capital 57,351,008 57,016,859Accumulated deficit (38,281,548) (35,833,621)Total Tecogen Inc. stockholders’ equity 19,094,310 21,208,088Noncontrolling interest (106,560) (79,939)Total stockholders’ equity 18,987,750 21,128,149TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY$28,252,857 $32,362,222TECOGEN INC.CONSOLIDATED STATEMENTS OF OPERATIONSFor the Three Months Ended December 31, 2022 and 2021(unaudited) 2022 2021Revenues Products$ 999,771 $ 3,693,349 Services 3,014,586 3,086,891 Energy production 517,230 399,702Total revenues 4,531,587 7,179,942Cost of sales Products 678,855 1,999,637 Services 1,202,800 1,450,945 Energy production 270,693 277,488Total cost of sales 2,152,348 3,728,070Gross profit 2,379,239 3,451,872Operating expenses General and administrative 3,267,067 2,437,727 Selling 238,863 723,971 Research and Development 195,747 161,015Gain on sales of assets — (400)Long-lived asset impairment 76,049 —Total operating expenses 3,777,726 3,322,313Income (loss) from operations (1,398,487) 129,559Other income (expense) Interest and other income (expense) (12,157) (6,533) Interest expense (415) (655) Unrealized loss on investment securities (18,749) (56,246)Total other expense, net (31,321) (63,434)Income (loss) before income taxes (1,429,808) 66,125Income tax provision — 500Consolidated net income (loss) (1,429,808) 65,625(Income) loss attributable to the noncontrolling interest 5,402 (2,659)Net income (loss) attributable to Tecogen Inc$ (1,424,406) $ 62,966Net income (loss) per share - basic$ (0.06) $ —Weighted average shares outstanding - basic 24,850,261 24,850,261Net income (loss) per share - diluted$ (0.06) $ —Weighted average shares outstanding - diluted 24,850,261 25,063,864TECOGEN INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONSFor the Three Months Ended December 31, 2022 and 2021(unaudited)Non-GAAP financial disclosure (1)2022 2021Net income (loss) attributable to Tecogen Inc$ (1,424,406) $ 62,966Interest expense, net 415 655Provision for income taxes — 500Depreciation and amortization, net 103,381 112,218EBITDA (1,320,610) 176,339Stock-based compensation 79,431 51,775Unrealized loss on securities 18,749 56,246Long-lived asset impairment 76,049 —Adjusted EBITDA$ (1,146,381) $ 284,360TECOGEN INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONSFor the Years Ended December 31, 2022 and 2021(unaudited) 2022 2021Revenues Products$ 11,156,099 $ 10,133,329Services 12,060,661 12,525,594Energy production 1,785,854 1,739,150Total revenues 25,002,614 24,398,073Cost of sales Products 7,413,320 5,601,046Services 5,525,493 6,134,953Energy production 996,990 1,074,421Total cost of sales 13,935,803 12,810,420Gross profit 11,066,811 11,587,653Operating expenses General and administrative 10,909,251 9,795,823Selling 1,811,085 2,471,929Research and development 732,873 542,079Gain on sale of assets (41,931) (10,486)Long-lived asset impairment 4,674 7,400Total operating expenses 13,415,952 12,806,745Loss from operations (2,349,141) (1,219,092)Other income (expense) Interest and other income (34,713) (23,746)Interest expense (16,255) (14,238)Gain on extinguishment of debt — 3,773,014Employee Retention Credit — 1,276,021Gain on the sale of investments — 6,046 Unrealized gain (loss) on investment securities 18,749 (37,497)Total other income (expense), net (32,219) 4,979,600Income (loss) before income taxes (2,381,360) 3,760,508State income tax provision 16,352 19,491Consolidated net income (loss) (2,397,712) 3,741,017Income attributable to the noncontrolling interest (50,215) (45,017)Net income (loss) attributable to Tecogen Inc.$ (2,447,927) $ 3,696,000 Net income (loss) per share - basic$ (0.10) $ 0.15Weighted average shares outstanding - basic24,850,261 24,850,261Net income (loss) per share - diluted$ (0.10) $ 0.15Weighted average shares outstanding -diluted24,850,261 25,115,518 TECOGEN INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONSFor the Years Ended December 31, 2022 and 2021(unaudited)Non-GAAP financial disclosure (1)2022 2021Net income (loss) attributable to Tecogen Inc$ (2,447,927) $ 3,696,000Provision for income taxes 16,352 19,491Interest expense, net 16,255 14,238Depreciation and amortization, net 428,348 469,854EBITDA (1,986,972) 4,199,583Stock-based compensation 334,149 202,431Gain on extinguishment of debt — (3,773,014)Unrealized loss on investment securities (18,749) 31,451Asset impairment 4,674 7,400Adjusted EBITDA (2)$ (1,666,898) $ 667,851(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 $1.2 million of Employee Retention Credit.TECOGEN INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWSFor the Years Ended December 31, 2022 and 2021(unaudited) 2022 2021 CASH FLOWS FROM OPERATING ACTIVITIES: Consolidated net income (loss)$ (2,397,712) $ 3,741,017 Adjustments to reconcile net income (loss) to net cash used in operating activities: Depreciation, accretion and amortization, net 428,348 469,854 Gain on the extinguishment of debt — (3,773,014) Employee retention credit — (1,276,021) Long-lived asset impairment 4,674 7,400 Gain on sale of assets (41,931) (10,486) Provision for doubtful accounts receivable (70,987) 131,206 Gain on the sale of investments — (6,046) Provision for litigation 150,000 — Provision for inventory reserve 107,000 Unrealized (gain) loss on investment securities (18,749) 37,497 Stock-based compensation 334,149 202,431 Changes in operating assets and liabilities: (Increase) decrease in: Accounts receivable 2,401,904 57,618 Inventory, net (2,824,740) (596,393) Unbilled revenue 1,452,860 1,009,060 Prepaid expenses and other current assets 177,612 18,343 Other non-current assets 625,320 (231,478) Increase (decrease) in: Accounts payable (246,401) (674,750) Accrued expenses (109,282) 374,802 Deferred revenue (678,758) 756,722 Other current liabilities (645,236) 227,271 Net cash (used in) provided by operating activities (1,351,929) 465,033 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property and equipment (314,879) (91,451) Proceeds on sale of property and equipment 72,655 10,486 Purchases of intangible assets (29,505) (63,097) Proceeds from sale of investments — 11,637 Distributions to noncontrolling interest (76,836) (82,633) Net used in investing activities (348,565) (215,058) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from note payable — 1,874,269 Net cash provided by financing activities — 1,874,269 Change in cash and cash equivalents (1,700,494) 2,124,244 Cash and cash equivalents, beginning of the year 3,614,463 1,490,219 Cash and cash equivalents, end of the year$ 1,913,969 $ 3,614,463 View the original release on www.newmediawire.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. 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Tecogen Announces 2022 Results By: NewMediaWire March 16, 2023 at 09:30 AM EDT Revenue of $25.0 million for FY 2022 up 2.5% compared to FY 2021 Waltham, MA - (NewMediaWire) - March 16, 2023 - Tecogen Inc. (OTCQX:TGEN), a leading manufacturer of clean energy products, reported a net loss of $1.4 million for the quarter ended December 31, 2022 and $2.4 million for the full year compared to net income of $0.1 million and $3.7 million, respectively, in 2021. The decrease in net income was due to lower gross profit and increased operating expenses in 2022, and the impact of the PPP loan forgiveness and Employee Retention Credit in 2021. Our gross margin decreased to 44.3% for the year ended December 31, 2022 compared to 47.5% for the same period in 2021. The year-end cash balance was $1.9 million and no debt. Key TakeawaysEarnings Per ShareNet income (loss) per share, basic and diluted, was $(0.10) per share for FY 2022 and $(0.06) per share for Q4 2022 compared to income of $0.15 and $0.00 per share for the same periods in 2021.Income from OperationsOperating loss was $1.4 million for the quarter compared to an operating profit of $0.1 million during the same period in 2021. The increase in our operating loss is due primarily to decreased revenue and margins for our Products Segment and increased operating expenses. For the year ended December 31, 2022, our loss from operations was $2.3 million compared to a loss of $1.2 million for the same period in 2021, an increase of $1.1 million. The increase in our loss from operations is due to the lower product margins in 2022 compared to 2021 due to higher material costs and, increased operating expenses. RevenuesRevenues for the quarter ended December 31, 2022 were $4.5 million compared to $7.2 million for the same period in 2021, a 36.9% decrease. Product revenue was $1.0 million in Q4 2022 compared to $3.7 million in the same period in 2021, a decrease of 72.9% primarily due to a decrease in both cogeneration and chiller sales. Services revenue was $3.0 million in Q4 2022 compared to $3.1 million in the same period in 2021, a decline of 2.3% due to reduced lower margin installation activity. Service contract revenue (O&M revenue) remained flat at $3.0 million. Energy Production revenue increased by $117.5 thousand, or 29.4%, to $517 thousand in Q4 2022 compared to $400 thousand in the same period in 2021. For the year ended December 31, 2022, revenues were $25.0 million compared to $24.4 million in FY 2021, an increase of $0.6 million or 2.5% year over year.Product revenue was $11.2 million in the 2022 compared to $10.1 million in FY 2021, an increase of 10.1%. Services revenue was $12.1 million for FY 2022 compared to $12.5 million in FY 2021, a decline of 3.7% due to reduced lower margin installation activity. Service contract revenue (O&M revenue) increased 4.1% to $12.1 million for FY 2022 compared to $11.6 million in FY 2021.Energy production revenue for FY 2022 was $1.8 million, compared to $1.7 million in FY 2021, an increase of 2.7%.Gross ProfitGross profit for the fourth quarter of 2022 was $2.4 million compared to $3.5 million in the fourth quarter of 2021. Gross margin improved to 52.5% in the fourth quarter of 2022 compared to 48.1% for the same period in 2021. The decrease in product sales in the quarter resulted in a larger proportion of revenues from higher margin O&M service activities. Gross profit for FY 2022 was $11.1 million compared to $11.6 million for FY 2021, a decrease of 4.5%. For FY 2022 gross margin decreased to 44.3% compared to 47.5% for the same period in 2021 due to higher cost of materials. Operating ExpensesOperating expenses increased by 13.7% to $3.8 million for the fourth quarter of 2022 compared to $3.3 million in the same period of 2021. Operating expenses were higher in Q4 2022 primarily due to an overall increased in administrative costs, the impairment of long-lived assets, an increase in reserves for bad debt, a litigation provision, and increased R&D expenses associated with the development of the air-cooled chiller.For FY 2022 operating expenses increased $0.6 million, or 4.8%, to $13.4 million compared to $12.8 million for FY 2021. Operating expenses were higher in 2022 primarily due to an overall increase in administrative costs, a litigation provision, and increased R&D expenses associated with the development of the air-cooled chiller.Adjusted EBITDA loss was $1,146 thousand for the fourth quarter of 2022 compared to income of $284 thousand for the fourth quarter. Operating expenses were higher in 2022 primarily due to an overall increase in administrative costs, the impairment of long-lived assets, an increase in reserves for bad debt, a litigation provision and increased R&D expenses associated with the development of the air-cooled chiller. For the year ended December 31, 2022 adjusted EBITDA loss was $1.7 million compared to EBITDA income of $0.7 million for FY 2021. The FY 2021 adjusted EBITDA benefited from the recognition of the $1.2 million in 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).“In the last month as CEO of Tecogen we have been implementing some significant strategic initiatives that we expect to bear fruit over the coming year,” commented Abinand Rangesh, Tecogen's Chief Executive Officer. “We recently launched the hybrid air-cooled chiller at AHR 2023, which is the largest HVAC trade show in North America. It was well received with significant interest from a variety of parties. Additional color and a discussion of our strategic direction for 2023 and beyond will be discussed in our earnings call.”Conference Call Scheduled for March 16, 2023 at 11:00 am ETTecogen will host a conference call on March 16, 2023 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 FY 2022 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 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 3,150 units, supported by an established network of engineering, sales, and service personnel across the United States. Aggregate run hours on Tecogen’s InVerde e+ cogeneration systems exceeds 5 million hours. 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: Abinand RangeshP: 781-466-6487E: abinand.Rangesh@tecogen.comTecogen Inc.CONDENSED CONSOLIDATED BALANCE SHEETSAs of December 31, 2022 and 2021 (unaudited)ASSETS2022 2021Current assets: Cash and cash equivalents$ 1,913,969 $ 3,614,463Accounts receivable, net 6,714,122 8,482,286Employee retention credit receivable 713,269 1,276,021Unbilled revenue 1,805,330 3,258,189Inventory, net 10,482,729 7,764,989Prepaid and other current assets 401,189 578,801Total current assets 22,030,608 24,974,749Property, plant and equipment, net 1,407,720 1,782,944Right of use assets 1,245,549 1,869,210Intangible assets, net 997,594 1,181,023Goodwill 2,406,156 2,406,156Other assets 165,230 148,140TOTAL ASSETS$28,252,857 $32,362,222LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable$ 3,261,952 $ 3,508,354Accrued expenses 2,384,447 2,343,728Deferred revenue 1,115,627 1,957,752Lease obligations 687,589 641,002Unfavorable contract liabilities 236,705 330,032Total current liabilities 7,686,320 8,780,868Long-term liabilities: Deferred revenue, net of current portion 371,823 208,456Lease obligations, net of current portion 623,452 1,315,275Unfavorable contract liability, net of current portion 583,512 929,474Total liabilities 9,265,107 11,234,073Stockholders’ 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, 2022 and 2021, respectively 24,850 24,850Additional paid-in capital 57,351,008 57,016,859Accumulated deficit (38,281,548) (35,833,621)Total Tecogen Inc. stockholders’ equity 19,094,310 21,208,088Noncontrolling interest (106,560) (79,939)Total stockholders’ equity 18,987,750 21,128,149TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY$28,252,857 $32,362,222TECOGEN INC.CONSOLIDATED STATEMENTS OF OPERATIONSFor the Three Months Ended December 31, 2022 and 2021(unaudited) 2022 2021Revenues Products$ 999,771 $ 3,693,349 Services 3,014,586 3,086,891 Energy production 517,230 399,702Total revenues 4,531,587 7,179,942Cost of sales Products 678,855 1,999,637 Services 1,202,800 1,450,945 Energy production 270,693 277,488Total cost of sales 2,152,348 3,728,070Gross profit 2,379,239 3,451,872Operating expenses General and administrative 3,267,067 2,437,727 Selling 238,863 723,971 Research and Development 195,747 161,015Gain on sales of assets — (400)Long-lived asset impairment 76,049 —Total operating expenses 3,777,726 3,322,313Income (loss) from operations (1,398,487) 129,559Other income (expense) Interest and other income (expense) (12,157) (6,533) Interest expense (415) (655) Unrealized loss on investment securities (18,749) (56,246)Total other expense, net (31,321) (63,434)Income (loss) before income taxes (1,429,808) 66,125Income tax provision — 500Consolidated net income (loss) (1,429,808) 65,625(Income) loss attributable to the noncontrolling interest 5,402 (2,659)Net income (loss) attributable to Tecogen Inc$ (1,424,406) $ 62,966Net income (loss) per share - basic$ (0.06) $ —Weighted average shares outstanding - basic 24,850,261 24,850,261Net income (loss) per share - diluted$ (0.06) $ —Weighted average shares outstanding - diluted 24,850,261 25,063,864TECOGEN INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONSFor the Three Months Ended December 31, 2022 and 2021(unaudited)Non-GAAP financial disclosure (1)2022 2021Net income (loss) attributable to Tecogen Inc$ (1,424,406) $ 62,966Interest expense, net 415 655Provision for income taxes — 500Depreciation and amortization, net 103,381 112,218EBITDA (1,320,610) 176,339Stock-based compensation 79,431 51,775Unrealized loss on securities 18,749 56,246Long-lived asset impairment 76,049 —Adjusted EBITDA$ (1,146,381) $ 284,360TECOGEN INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONSFor the Years Ended December 31, 2022 and 2021(unaudited) 2022 2021Revenues Products$ 11,156,099 $ 10,133,329Services 12,060,661 12,525,594Energy production 1,785,854 1,739,150Total revenues 25,002,614 24,398,073Cost of sales Products 7,413,320 5,601,046Services 5,525,493 6,134,953Energy production 996,990 1,074,421Total cost of sales 13,935,803 12,810,420Gross profit 11,066,811 11,587,653Operating expenses General and administrative 10,909,251 9,795,823Selling 1,811,085 2,471,929Research and development 732,873 542,079Gain on sale of assets (41,931) (10,486)Long-lived asset impairment 4,674 7,400Total operating expenses 13,415,952 12,806,745Loss from operations (2,349,141) (1,219,092)Other income (expense) Interest and other income (34,713) (23,746)Interest expense (16,255) (14,238)Gain on extinguishment of debt — 3,773,014Employee Retention Credit — 1,276,021Gain on the sale of investments — 6,046 Unrealized gain (loss) on investment securities 18,749 (37,497)Total other income (expense), net (32,219) 4,979,600Income (loss) before income taxes (2,381,360) 3,760,508State income tax provision 16,352 19,491Consolidated net income (loss) (2,397,712) 3,741,017Income attributable to the noncontrolling interest (50,215) (45,017)Net income (loss) attributable to Tecogen Inc.$ (2,447,927) $ 3,696,000 Net income (loss) per share - basic$ (0.10) $ 0.15Weighted average shares outstanding - basic24,850,261 24,850,261Net income (loss) per share - diluted$ (0.10) $ 0.15Weighted average shares outstanding -diluted24,850,261 25,115,518 TECOGEN INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONSFor the Years Ended December 31, 2022 and 2021(unaudited)Non-GAAP financial disclosure (1)2022 2021Net income (loss) attributable to Tecogen Inc$ (2,447,927) $ 3,696,000Provision for income taxes 16,352 19,491Interest expense, net 16,255 14,238Depreciation and amortization, net 428,348 469,854EBITDA (1,986,972) 4,199,583Stock-based compensation 334,149 202,431Gain on extinguishment of debt — (3,773,014)Unrealized loss on investment securities (18,749) 31,451Asset impairment 4,674 7,400Adjusted EBITDA (2)$ (1,666,898) $ 667,851(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 $1.2 million of Employee Retention Credit.TECOGEN INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWSFor the Years Ended December 31, 2022 and 2021(unaudited) 2022 2021 CASH FLOWS FROM OPERATING ACTIVITIES: Consolidated net income (loss)$ (2,397,712) $ 3,741,017 Adjustments to reconcile net income (loss) to net cash used in operating activities: Depreciation, accretion and amortization, net 428,348 469,854 Gain on the extinguishment of debt — (3,773,014) Employee retention credit — (1,276,021) Long-lived asset impairment 4,674 7,400 Gain on sale of assets (41,931) (10,486) Provision for doubtful accounts receivable (70,987) 131,206 Gain on the sale of investments — (6,046) Provision for litigation 150,000 — Provision for inventory reserve 107,000 Unrealized (gain) loss on investment securities (18,749) 37,497 Stock-based compensation 334,149 202,431 Changes in operating assets and liabilities: (Increase) decrease in: Accounts receivable 2,401,904 57,618 Inventory, net (2,824,740) (596,393) Unbilled revenue 1,452,860 1,009,060 Prepaid expenses and other current assets 177,612 18,343 Other non-current assets 625,320 (231,478) Increase (decrease) in: Accounts payable (246,401) (674,750) Accrued expenses (109,282) 374,802 Deferred revenue (678,758) 756,722 Other current liabilities (645,236) 227,271 Net cash (used in) provided by operating activities (1,351,929) 465,033 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property and equipment (314,879) (91,451) Proceeds on sale of property and equipment 72,655 10,486 Purchases of intangible assets (29,505) (63,097) Proceeds from sale of investments — 11,637 Distributions to noncontrolling interest (76,836) (82,633) Net used in investing activities (348,565) (215,058) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from note payable — 1,874,269 Net cash provided by financing activities — 1,874,269 Change in cash and cash equivalents (1,700,494) 2,124,244 Cash and cash equivalents, beginning of the year 3,614,463 1,490,219 Cash and cash equivalents, end of the year$ 1,913,969 $ 3,614,463 View the original release on www.newmediawire.com
Revenue of $25.0 million for FY 2022 up 2.5% compared to FY 2021 Waltham, MA - (NewMediaWire) - March 16, 2023 - Tecogen Inc. (OTCQX:TGEN), a leading manufacturer of clean energy products, reported a net loss of $1.4 million for the quarter ended December 31, 2022 and $2.4 million for the full year compared to net income of $0.1 million and $3.7 million, respectively, in 2021. The decrease in net income was due to lower gross profit and increased operating expenses in 2022, and the impact of the PPP loan forgiveness and Employee Retention Credit in 2021. Our gross margin decreased to 44.3% for the year ended December 31, 2022 compared to 47.5% for the same period in 2021. The year-end cash balance was $1.9 million and no debt. Key TakeawaysEarnings Per ShareNet income (loss) per share, basic and diluted, was $(0.10) per share for FY 2022 and $(0.06) per share for Q4 2022 compared to income of $0.15 and $0.00 per share for the same periods in 2021.Income from OperationsOperating loss was $1.4 million for the quarter compared to an operating profit of $0.1 million during the same period in 2021. The increase in our operating loss is due primarily to decreased revenue and margins for our Products Segment and increased operating expenses. For the year ended December 31, 2022, our loss from operations was $2.3 million compared to a loss of $1.2 million for the same period in 2021, an increase of $1.1 million. The increase in our loss from operations is due to the lower product margins in 2022 compared to 2021 due to higher material costs and, increased operating expenses. RevenuesRevenues for the quarter ended December 31, 2022 were $4.5 million compared to $7.2 million for the same period in 2021, a 36.9% decrease. Product revenue was $1.0 million in Q4 2022 compared to $3.7 million in the same period in 2021, a decrease of 72.9% primarily due to a decrease in both cogeneration and chiller sales. Services revenue was $3.0 million in Q4 2022 compared to $3.1 million in the same period in 2021, a decline of 2.3% due to reduced lower margin installation activity. Service contract revenue (O&M revenue) remained flat at $3.0 million. Energy Production revenue increased by $117.5 thousand, or 29.4%, to $517 thousand in Q4 2022 compared to $400 thousand in the same period in 2021. For the year ended December 31, 2022, revenues were $25.0 million compared to $24.4 million in FY 2021, an increase of $0.6 million or 2.5% year over year.Product revenue was $11.2 million in the 2022 compared to $10.1 million in FY 2021, an increase of 10.1%. Services revenue was $12.1 million for FY 2022 compared to $12.5 million in FY 2021, a decline of 3.7% due to reduced lower margin installation activity. Service contract revenue (O&M revenue) increased 4.1% to $12.1 million for FY 2022 compared to $11.6 million in FY 2021.Energy production revenue for FY 2022 was $1.8 million, compared to $1.7 million in FY 2021, an increase of 2.7%.Gross ProfitGross profit for the fourth quarter of 2022 was $2.4 million compared to $3.5 million in the fourth quarter of 2021. Gross margin improved to 52.5% in the fourth quarter of 2022 compared to 48.1% for the same period in 2021. The decrease in product sales in the quarter resulted in a larger proportion of revenues from higher margin O&M service activities. Gross profit for FY 2022 was $11.1 million compared to $11.6 million for FY 2021, a decrease of 4.5%. For FY 2022 gross margin decreased to 44.3% compared to 47.5% for the same period in 2021 due to higher cost of materials. Operating ExpensesOperating expenses increased by 13.7% to $3.8 million for the fourth quarter of 2022 compared to $3.3 million in the same period of 2021. Operating expenses were higher in Q4 2022 primarily due to an overall increased in administrative costs, the impairment of long-lived assets, an increase in reserves for bad debt, a litigation provision, and increased R&D expenses associated with the development of the air-cooled chiller.For FY 2022 operating expenses increased $0.6 million, or 4.8%, to $13.4 million compared to $12.8 million for FY 2021. Operating expenses were higher in 2022 primarily due to an overall increase in administrative costs, a litigation provision, and increased R&D expenses associated with the development of the air-cooled chiller.Adjusted EBITDA loss was $1,146 thousand for the fourth quarter of 2022 compared to income of $284 thousand for the fourth quarter. Operating expenses were higher in 2022 primarily due to an overall increase in administrative costs, the impairment of long-lived assets, an increase in reserves for bad debt, a litigation provision and increased R&D expenses associated with the development of the air-cooled chiller. For the year ended December 31, 2022 adjusted EBITDA loss was $1.7 million compared to EBITDA income of $0.7 million for FY 2021. The FY 2021 adjusted EBITDA benefited from the recognition of the $1.2 million in 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).“In the last month as CEO of Tecogen we have been implementing some significant strategic initiatives that we expect to bear fruit over the coming year,” commented Abinand Rangesh, Tecogen's Chief Executive Officer. “We recently launched the hybrid air-cooled chiller at AHR 2023, which is the largest HVAC trade show in North America. It was well received with significant interest from a variety of parties. Additional color and a discussion of our strategic direction for 2023 and beyond will be discussed in our earnings call.”Conference Call Scheduled for March 16, 2023 at 11:00 am ETTecogen will host a conference call on March 16, 2023 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 FY 2022 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 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 3,150 units, supported by an established network of engineering, sales, and service personnel across the United States. Aggregate run hours on Tecogen’s InVerde e+ cogeneration systems exceeds 5 million hours. 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: Abinand RangeshP: 781-466-6487E: abinand.Rangesh@tecogen.comTecogen Inc.CONDENSED CONSOLIDATED BALANCE SHEETSAs of December 31, 2022 and 2021 (unaudited)ASSETS2022 2021Current assets: Cash and cash equivalents$ 1,913,969 $ 3,614,463Accounts receivable, net 6,714,122 8,482,286Employee retention credit receivable 713,269 1,276,021Unbilled revenue 1,805,330 3,258,189Inventory, net 10,482,729 7,764,989Prepaid and other current assets 401,189 578,801Total current assets 22,030,608 24,974,749Property, plant and equipment, net 1,407,720 1,782,944Right of use assets 1,245,549 1,869,210Intangible assets, net 997,594 1,181,023Goodwill 2,406,156 2,406,156Other assets 165,230 148,140TOTAL ASSETS$28,252,857 $32,362,222LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable$ 3,261,952 $ 3,508,354Accrued expenses 2,384,447 2,343,728Deferred revenue 1,115,627 1,957,752Lease obligations 687,589 641,002Unfavorable contract liabilities 236,705 330,032Total current liabilities 7,686,320 8,780,868Long-term liabilities: Deferred revenue, net of current portion 371,823 208,456Lease obligations, net of current portion 623,452 1,315,275Unfavorable contract liability, net of current portion 583,512 929,474Total liabilities 9,265,107 11,234,073Stockholders’ 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, 2022 and 2021, respectively 24,850 24,850Additional paid-in capital 57,351,008 57,016,859Accumulated deficit (38,281,548) (35,833,621)Total Tecogen Inc. stockholders’ equity 19,094,310 21,208,088Noncontrolling interest (106,560) (79,939)Total stockholders’ equity 18,987,750 21,128,149TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY$28,252,857 $32,362,222TECOGEN INC.CONSOLIDATED STATEMENTS OF OPERATIONSFor the Three Months Ended December 31, 2022 and 2021(unaudited) 2022 2021Revenues Products$ 999,771 $ 3,693,349 Services 3,014,586 3,086,891 Energy production 517,230 399,702Total revenues 4,531,587 7,179,942Cost of sales Products 678,855 1,999,637 Services 1,202,800 1,450,945 Energy production 270,693 277,488Total cost of sales 2,152,348 3,728,070Gross profit 2,379,239 3,451,872Operating expenses General and administrative 3,267,067 2,437,727 Selling 238,863 723,971 Research and Development 195,747 161,015Gain on sales of assets — (400)Long-lived asset impairment 76,049 —Total operating expenses 3,777,726 3,322,313Income (loss) from operations (1,398,487) 129,559Other income (expense) Interest and other income (expense) (12,157) (6,533) Interest expense (415) (655) Unrealized loss on investment securities (18,749) (56,246)Total other expense, net (31,321) (63,434)Income (loss) before income taxes (1,429,808) 66,125Income tax provision — 500Consolidated net income (loss) (1,429,808) 65,625(Income) loss attributable to the noncontrolling interest 5,402 (2,659)Net income (loss) attributable to Tecogen Inc$ (1,424,406) $ 62,966Net income (loss) per share - basic$ (0.06) $ —Weighted average shares outstanding - basic 24,850,261 24,850,261Net income (loss) per share - diluted$ (0.06) $ —Weighted average shares outstanding - diluted 24,850,261 25,063,864TECOGEN INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONSFor the Three Months Ended December 31, 2022 and 2021(unaudited)Non-GAAP financial disclosure (1)2022 2021Net income (loss) attributable to Tecogen Inc$ (1,424,406) $ 62,966Interest expense, net 415 655Provision for income taxes — 500Depreciation and amortization, net 103,381 112,218EBITDA (1,320,610) 176,339Stock-based compensation 79,431 51,775Unrealized loss on securities 18,749 56,246Long-lived asset impairment 76,049 —Adjusted EBITDA$ (1,146,381) $ 284,360TECOGEN INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONSFor the Years Ended December 31, 2022 and 2021(unaudited) 2022 2021Revenues Products$ 11,156,099 $ 10,133,329Services 12,060,661 12,525,594Energy production 1,785,854 1,739,150Total revenues 25,002,614 24,398,073Cost of sales Products 7,413,320 5,601,046Services 5,525,493 6,134,953Energy production 996,990 1,074,421Total cost of sales 13,935,803 12,810,420Gross profit 11,066,811 11,587,653Operating expenses General and administrative 10,909,251 9,795,823Selling 1,811,085 2,471,929Research and development 732,873 542,079Gain on sale of assets (41,931) (10,486)Long-lived asset impairment 4,674 7,400Total operating expenses 13,415,952 12,806,745Loss from operations (2,349,141) (1,219,092)Other income (expense) Interest and other income (34,713) (23,746)Interest expense (16,255) (14,238)Gain on extinguishment of debt — 3,773,014Employee Retention Credit — 1,276,021Gain on the sale of investments — 6,046 Unrealized gain (loss) on investment securities 18,749 (37,497)Total other income (expense), net (32,219) 4,979,600Income (loss) before income taxes (2,381,360) 3,760,508State income tax provision 16,352 19,491Consolidated net income (loss) (2,397,712) 3,741,017Income attributable to the noncontrolling interest (50,215) (45,017)Net income (loss) attributable to Tecogen Inc.$ (2,447,927) $ 3,696,000 Net income (loss) per share - basic$ (0.10) $ 0.15Weighted average shares outstanding - basic24,850,261 24,850,261Net income (loss) per share - diluted$ (0.10) $ 0.15Weighted average shares outstanding -diluted24,850,261 25,115,518 TECOGEN INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONSFor the Years Ended December 31, 2022 and 2021(unaudited)Non-GAAP financial disclosure (1)2022 2021Net income (loss) attributable to Tecogen Inc$ (2,447,927) $ 3,696,000Provision for income taxes 16,352 19,491Interest expense, net 16,255 14,238Depreciation and amortization, net 428,348 469,854EBITDA (1,986,972) 4,199,583Stock-based compensation 334,149 202,431Gain on extinguishment of debt — (3,773,014)Unrealized loss on investment securities (18,749) 31,451Asset impairment 4,674 7,400Adjusted EBITDA (2)$ (1,666,898) $ 667,851(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 $1.2 million of Employee Retention Credit.TECOGEN INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWSFor the Years Ended December 31, 2022 and 2021(unaudited) 2022 2021 CASH FLOWS FROM OPERATING ACTIVITIES: Consolidated net income (loss)$ (2,397,712) $ 3,741,017 Adjustments to reconcile net income (loss) to net cash used in operating activities: Depreciation, accretion and amortization, net 428,348 469,854 Gain on the extinguishment of debt — (3,773,014) Employee retention credit — (1,276,021) Long-lived asset impairment 4,674 7,400 Gain on sale of assets (41,931) (10,486) Provision for doubtful accounts receivable (70,987) 131,206 Gain on the sale of investments — (6,046) Provision for litigation 150,000 — Provision for inventory reserve 107,000 Unrealized (gain) loss on investment securities (18,749) 37,497 Stock-based compensation 334,149 202,431 Changes in operating assets and liabilities: (Increase) decrease in: Accounts receivable 2,401,904 57,618 Inventory, net (2,824,740) (596,393) Unbilled revenue 1,452,860 1,009,060 Prepaid expenses and other current assets 177,612 18,343 Other non-current assets 625,320 (231,478) Increase (decrease) in: Accounts payable (246,401) (674,750) Accrued expenses (109,282) 374,802 Deferred revenue (678,758) 756,722 Other current liabilities (645,236) 227,271 Net cash (used in) provided by operating activities (1,351,929) 465,033 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property and equipment (314,879) (91,451) Proceeds on sale of property and equipment 72,655 10,486 Purchases of intangible assets (29,505) (63,097) Proceeds from sale of investments — 11,637 Distributions to noncontrolling interest (76,836) (82,633) Net used in investing activities (348,565) (215,058) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from note payable — 1,874,269 Net cash provided by financing activities — 1,874,269 Change in cash and cash equivalents (1,700,494) 2,124,244 Cash and cash equivalents, beginning of the year 3,614,463 1,490,219 Cash and cash equivalents, end of the year$ 1,913,969 $ 3,614,463 View the original release on www.newmediawire.com