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 Second Quarter 2023 Results By: NewMediaWire August 09, 2023 at 16:30 PM EDT Q2 2023 Revenue of $6.7 Million, an Increase of 5.2% QoQ WALTHAM, MA - (NewMediaWire) - August 09, 2023 - Tecogen Inc. (OTCQX:TGEN), a leading manufacturer of clean energy products, reported revenues of $6.7 million and a net loss of $0.8 million for the quarter ended June 30, 2023 compared to revenues of $6.4 million, and a net loss of $0.9 million in 2022. For the six months ended June 30, 2023 revenues were $12.1 million and the net loss was $2.3 million compared to revenues of $13.9 million, and net loss of $0.8 million for the same period in 2022."We saw an increase in revenues compared to both Q1 2023 and Q2 2022 of 25% and 5% respectively. Our sales backlog has increased from $7.1 million at the end of Q1 to $8.3 million at the end of Q2 to $11.3 million today. This backlog does not include our recurring service revenue. The Aegis service contract acquisition meant we had service revenues of almost $4 million this quarter or a 30% increase. We finished the quarter with $1.87 million in cash as we generated cash from operations in Q2 2023 and H1 2023. Overall we made substantial progress towards turning around the business and meeting the objectives we set out earlier in the year." commented Abinand Rangesh, Tecogen's Chief Executive Officer.Key TakeawaysNet Income and Earnings Per Share● Net loss in Q2 2023 was $0.8 million compared to net loss of $0.9 million in Q2 2022, a decrease of $0.1 million, primarily due to higher Services segment revenue and gross profit. EPS was a loss of $0.03/share in both Q2 2023 and Q2 2022, respectively.● Net loss in H1 2023 was $2.3 million compared to net loss of $0.8 million in Q2 2022, an increase of $1.5 million, due primarily to lower Products segment revenue and gross profit and an increase in operating expenses. EPS was a net loss of $0.09/share and a net loss of $0.03/share in H1 2023 and H1 2022, respectively.Loss from Operations● Loss from operations for the three months ended June 30, 2023 was $0.8 million compared to a loss of $0.8 million for the same period in 2022.● Loss from operations for H1 2023 was $2.2 million compared to a loss of $0.7 million for the same period in 2022, an increase of $1.5 million. The loss from operations increased due to lower revenue and gross profit margins in our Products segment and increased operating expenses.Revenues● Revenues for the quarter ended June 30, 2023 were $6.7 million compared to $6.4 million for the same period in 2022, a 5.2% increase.o Products revenue was $2.4 million in Q2 2023 compared to $3.0 million in the same period in 2022, a decrease of 18.8%, primarily due to decreased cogeneration and chiller sales into our key market segments including controlled environment agriculture.o Services revenue was $4.0 million in Q2 2023 compared to $3.1 million in the same period in 2022, an increase of 29.6%, primarily due to revenue from the acquired Aegis maintenance contracts and a 9.0% increase in revenue from existing contracts.o Energy Production revenue decreased 1.2%, to $350 thousand in Q2 2023 compared to $354 thousand in the same period in 2022.● Revenues for H1 2023 were $12.1 million compared to $13.9 million for the same period in 2022, a 12.4% decrease.o Products revenue was $4.2 million in H1 2023 compared to $6.9 million in the same period in 2022, a decrease of 40.2%, primarily due to decreased cogeneration and chiller sales into our key market segments including controlled environment agriculture.o Services revenue was $7.1 million in H1 2023 compared to $6.0 million in the same period in 2022, an increase of 18.8%, primarily due to revenue from the acquired Aegis maintenance contracts and a 8.3% increase in revenue from existing contracts.o Energy Production revenue decreased 5.6%, to $0.88 million in H1 2023 compared to $0.94 million in the same period in 2022 due to temporary maintenance work on two sites.Gross Profit and Gross Margin● Gross profit for the second quarter of 2023 was $2.8 million compared to $2.7 million in the second quarter of 2022. Gross margin was 42.0% in the first quarter compared to 42.1% for the same period in 2022. Products margin increased to 33.8% from 33.0%, while Services margin decreased to 47.5% from 51.7%, due to higher labor and material costs. In particular, as supply chain constraints for engines eased, we performed significant engine related replacements and upgrades which negatively impacted Service margins.● Gross profit for H1 2023 decreased to $4.9 million compared to $5.8 million in the same period in 2022, a decrease of $0.9 million. Gross margin decreased to 40.6% in the first half of 2023 compared to 41.8% for the same period in 2022 due to higher labor and material costs which reduced Products margin to 31.9% from 32.9% and Services margin to 46.2% from 52.4%. In particular, as supply chain constraints for engines eased, we performed a significant number of engine replacements in H2 2023 which negatively impacted Service margins. Energy Production margin deceased to 36.9% from 40.4% due to decreased runtime at the sites.Operating Expenses● Operating expenses increased by 2.7% to $3.6 million for the second quarter of 2023 compared to $3.5 million in the same period in 2022 due to increases in business insurance and consulting costs, attributable in part to the Aegis acquisition.● Operating expenses increased by 9.6% to $7.2 million for the first half of 2023 compared to $6.5 million in the same period in 2022 due to increases in business insurance, travel, and consulting costs, attributable in part to the Aegis acquisition.Adjusted EBITDA(1) was negative $592 thousand for the second quarter of 2023 compared to a negative $651 thousand for the second quarter of 2022. Adjusted EBITDA(1) was negative $1.9 million for the first half of 2023 compared to negative $448 thousand for the first half of 2022. (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).Conference Call Scheduled for August 10, 2023, at 9:30 am ETTecogen will host a conference call on August 10, 2023 to discuss the second quarter results beginning at 9:30 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 Second Quarter 2023 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 3,200 units, supported by an established network of engineering, sales, and service personnel across the United States. For more information, please visit www.tecogen.com or contact us for a free Site Assessment.Tecogen, InVerde e+, 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, our Quarterly Reports on Form 10-Q and on our Form 8-K, under “Risk Factors”, among the factors that could cause actual results to differ materially from past and projected future results are the following: fluctuations in demand for our products and services, competing technological developments, issues relating to research and development, the availability of incentives, rebates, and tax benefits relating to our products and services, changes in the regulatory environment relating to our products and services, integration of acquired business operations, and the ability to obtain financing on favorable terms to fund existing operations and anticipated growth.In addition to GAAP financial measures, this press release includes certain non-GAAP financial measures, including adjusted EBITDA which excludes certain expenses as described in the presentation. We use Adjusted EBITDA as an internal measure of business operating performance and believe that the presentation of non-GAAP financial measures provides a meaningful perspective of the underlying operating performance of our current business and enables investors to better understand and evaluate our historical and prospective operating performance by eliminating items that vary from period to period without correlation to our core operating performance and highlights trends in our business that may not otherwise be apparent when relying solely on GAAP financial measures.Tecogen Media & Investor Relations Contact Information: Abinand RangeshP: 781-466-6487E: Abinand.Rangesh@tecogen.comTECOGEN INC.CONDENSED CONSOLIDATED BALANCE SHEETS(unaudited) June 30, 2023 December 31, 2022ASSETS Current assets: Cash and cash equivalents$1,871,063 $1,913,969 Accounts receivable, net 5,614,291 6,714,122 Unbilled revenue 1,748,336 1,805,330 Employee retention credit receivable 46,148 713,269 Inventories, net 12,027,525 10,482,729 Prepaid and other current assets 467,390 401,189 Total current assets 21,774,753 22,030,608 Long-term assets: Property, plant and equipment, net 1,352,318 1,407,720 Right of use assets 920,690 1,245,549 Intangible assets, net 2,421,379 997,594 Goodwill 3,129,147 2,406,156 Other assets 201,898 165,230 TOTAL ASSETS$29,800,185 $28,252,857 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable 4,212,914 3,261,952 Accrued expenses 2,554,000 2,384,447 Deferred revenue, current 2,086,174 1,115,627 Lease obligations, current 513,811 687,589 Acquisition liabilities, current 649,241 — Unfavorable contract liability, current 213,559 236,705 Total current liabilities 10,229,699 7,686,320 Long-term liabilities: Deferred revenue, net of current portion 154,149 371,823 Lease obligations, net of current portion 459,372 623,452 Acquisition liabilities, net of current portion 1,643,567 — Unfavorable contract liability, net of current portion 490,802 583,512 Total liabilities 12,977,589 9,265,107 Stockholders’ equity: Tecogen Inc. shareholders’ equity: Common stock, $0.001 par value; 100,000,000 shares authorized; 24,850,261 issued and outstanding at June 30, 2023 and December 31, 2022 24,850 24,850 Additional paid-in capital 57,456,945 57,351,008 Accumulated deficit (40,551,687) (38,281,548) Total Tecogen Inc. stockholders’ equity 16,930,108 19,094,310 Non-controlling interest (107,512) (106,560) Total stockholders’ equity 16,822,596 18,987,750 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY$29,800,185 $28,252,857 TECOGEN INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(unaudited) Three Months Ended June 30, 2023 June 30, 2022Revenues Products$2,445,631 $3,010,115 Services 3,952,971 3,050,191 Energy production 350,156 354,287 Total revenues 6,748,758 6,414,593 Cost of sales Products 1,618,456 2,015,466 Services 2,075,869 1,473,586 Energy production 220,007 222,092 Total cost of sales 3,914,332 3,711,144 Gross profit 2,834,426 2,703,449 Operating expenses General and administrative 2,917,283 2,824,832 Selling 480,786 503,601 Research and Development 236,556 194,853 Gain on disposition of assets (19,950) (2,500) Total operating expenses 3,614,675 3,520,786 Loss from operations (780,249) (817,337) Other income (expense) Interest and other income (expense), net (21,061) (1,265) Interest expense (1,857) (12,733) Unrealized gain on investment securities 37,497 — Total other income (expense), net 14,579 (13,998) Loss before provision for state income taxes (765,670) (831,335) Provision for state income taxes 9,614 6,500 Consolidated net loss (775,284) (837,835) Income attributable to the non-controlling interest (4,826) (18,383) Net loss attributable to Tecogen Inc.$(780,110) $(856,218) Net loss per share – basic$(0.03) $(0.03) Net loss per share – diluted$(0.03) $(0.03) Weighted average shares outstanding - basic 24,850,261 24,850,261 Weighted average shares outstanding - diluted 24,850,261 24,850,261 Three Months Ended June 30, 2023 June 30, 2022Non-GAAP financial disclosure (1) Net loss attributable to Tecogen Inc.$(780,110) $(856,218) Interest expense, net 1,857 12,733 Income taxes 9,614 6,500 Depreciation & amortization, net 185,175 95,985 EBITDA (583,464) (741,000) Stock based compensation 28,589 89,893 Unrealized gain on investment securities (37,497) — Adjusted EBITDA$(592,372) $(651,107) TECOGEN INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(unaudited) Six Months Ended June 30, 2023 June 30, 2022Revenues Products$4,155,767 $6,949,596 Services 7,089,144 5,967,471 Energy production 883,665 935,849 Total revenues 12,128,576 13,852,916 Cost of sales Products 2,831,024 4,660,221 Services 3,813,471 2,840,338 Energy production 557,746 558,119 Total cost of sales 7,202,241 8,058,678 Gross profit 4,926,335 5,794,238 Operating expenses General and administrative 5,709,766 5,298,735 Selling 1,000,856 1,004,692 Research and development 465,658 334,988 Gain on disposition of assets (19,950) (36,445) Gain on termination of unfavorable contract liability — (71,375) Total operating expenses 7,156,330 6,530,595 Loss from operations (2,229,995) (736,357) Other income (expense) Interest and other income (expense), net (20,231) (15,416) Interest expense (2,272) (13,561) Unrealized gain on investment securities 37,497 37,497 Total other income (expense), net 14,994 8,520 Loss before provision for state income taxes (2,215,001) (727,837) Provision for state income taxes 32,252 10,430 Consolidated net loss (2,247,253) (738,267) Income attributable to non-controlling interest (22,886) (28,542) Net loss attributable to Tecogen Inc.$(2,270,139) $(766,809) Net income loss per share – basic$(0.09) $(0.03) Net income loss per share – diluted$(0.09) $(0.03) Weighted average shares outstanding - basic 24,850,261 24,850,261 Weighted average shares outstanding - diluted 24,850,261 28,250,261 Six Months Ended June 30, 2023 June 30, 2022Non-GAAP financial disclosure (1) Net loss attributable to Tecogen Inc.$(2,270,139) $(766,809) Interest expense, net 2,272 13,561 Income taxes 32,252 10,430 Depreciation & amortization, net 291,095 217,718 EBITDA (1,944,520) (525,100) Stock based compensation 105,937 185,600 Unrealized gain on marketable securities (37,497) (37,497) Gain on termination of unfavorable contract liability — (71,375) Adjusted EBITDA$(1,876,080) $(448,372) (1) Non-GAAP Financial MeasuresIn addition to reporting net income, a U.S. generally accepted accounting principle (“GAAP”) measure, this news release contains information about Adjusted EBITDA (net income (loss) attributable to Tecogen Inc adjusted for interest, income taxes, depreciation and amortization, stock-based compensation expense, unrealized gain or loss on investment securities, goodwill impairment charges and other non-cash non-recurring charges including abandonment of certain intangible assets and extinguishment of debt), which is a non-GAAP measure. The Company believes Adjusted EBITDA allows investors to view its performance in a manner similar to the methods used by management and provides additional insight into its operating results. Adjusted EBITDA is not calculated through the application of GAAP. Accordingly, it should not be considered as a substitute for the GAAP measure of net income and, therefore, should not be used in isolation of, but in conjunction with, the GAAP measure. The use of any non-GAAP measure may produce results that vary from the GAAP measure and may not be comparable to a similarly defined non-GAAP measure used by other companies.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(unaudited) Six Months Ended June 30, 2023 June 30, 2022CASH FLOWS FROM OPERATING ACTIVITIES: Consolidated net loss$(2,247,253) $(738,267) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation and amortization 291,095 217,718 Stock-based compensation 105,937 185,600 Provision for doubtful accounts 44,000 46,000 Gain on disposition of assets (19,950) (36,445) Unrealized gain on investment securities (37,497) (37,497) Gain on termination of unfavorable contract liability — (71,375) Changes in operating assets and liabilities (Increase) decrease in: Accounts receivable 755,831 (444,541) Employee retention credit receivable 667,121 562,752 Unbilled revenue 56,994 1,117,057 Inventory (1,133,618) (438,102) Prepaid assets and other current assets (66,201) (22,618) Other assets 325,688 308,282 Increase (decrease) in: Accounts payable 839,784 (247,876) Accrued expenses and other current liabilities 178,241 (74,490) Deferred revenue 752,873 (5 89,158) Other liabilities (359,369) (316,217) Net cash provided by (used in) operating activities 153,676 (579,177) CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property and equipment (19,607) (209,034) Payment for business acquisition (170,000) — Purchases of intangible assets — (29,505) Proceeds from disposition of assets 16,863 67,169 Distributions to non-controlling interest (23,838) (32,809) Net cash used in investing activities (196,582) (204,179) CASH FLOWS FROM FINANCING ACTIVITIES: Net cash provided by financing activities — — Change in cash and cash equivalents (42,906) (783,356) Cash and cash equivalents, beginning of the period 1,913,969 3,614,463 Cash and cash equivalents, end of the period$1,871,063 $2,831,107 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. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Tecogen Announces Second Quarter 2023 Results By: NewMediaWire August 09, 2023 at 16:30 PM EDT Q2 2023 Revenue of $6.7 Million, an Increase of 5.2% QoQ WALTHAM, MA - (NewMediaWire) - August 09, 2023 - Tecogen Inc. (OTCQX:TGEN), a leading manufacturer of clean energy products, reported revenues of $6.7 million and a net loss of $0.8 million for the quarter ended June 30, 2023 compared to revenues of $6.4 million, and a net loss of $0.9 million in 2022. For the six months ended June 30, 2023 revenues were $12.1 million and the net loss was $2.3 million compared to revenues of $13.9 million, and net loss of $0.8 million for the same period in 2022."We saw an increase in revenues compared to both Q1 2023 and Q2 2022 of 25% and 5% respectively. Our sales backlog has increased from $7.1 million at the end of Q1 to $8.3 million at the end of Q2 to $11.3 million today. This backlog does not include our recurring service revenue. The Aegis service contract acquisition meant we had service revenues of almost $4 million this quarter or a 30% increase. We finished the quarter with $1.87 million in cash as we generated cash from operations in Q2 2023 and H1 2023. Overall we made substantial progress towards turning around the business and meeting the objectives we set out earlier in the year." commented Abinand Rangesh, Tecogen's Chief Executive Officer.Key TakeawaysNet Income and Earnings Per Share● Net loss in Q2 2023 was $0.8 million compared to net loss of $0.9 million in Q2 2022, a decrease of $0.1 million, primarily due to higher Services segment revenue and gross profit. EPS was a loss of $0.03/share in both Q2 2023 and Q2 2022, respectively.● Net loss in H1 2023 was $2.3 million compared to net loss of $0.8 million in Q2 2022, an increase of $1.5 million, due primarily to lower Products segment revenue and gross profit and an increase in operating expenses. EPS was a net loss of $0.09/share and a net loss of $0.03/share in H1 2023 and H1 2022, respectively.Loss from Operations● Loss from operations for the three months ended June 30, 2023 was $0.8 million compared to a loss of $0.8 million for the same period in 2022.● Loss from operations for H1 2023 was $2.2 million compared to a loss of $0.7 million for the same period in 2022, an increase of $1.5 million. The loss from operations increased due to lower revenue and gross profit margins in our Products segment and increased operating expenses.Revenues● Revenues for the quarter ended June 30, 2023 were $6.7 million compared to $6.4 million for the same period in 2022, a 5.2% increase.o Products revenue was $2.4 million in Q2 2023 compared to $3.0 million in the same period in 2022, a decrease of 18.8%, primarily due to decreased cogeneration and chiller sales into our key market segments including controlled environment agriculture.o Services revenue was $4.0 million in Q2 2023 compared to $3.1 million in the same period in 2022, an increase of 29.6%, primarily due to revenue from the acquired Aegis maintenance contracts and a 9.0% increase in revenue from existing contracts.o Energy Production revenue decreased 1.2%, to $350 thousand in Q2 2023 compared to $354 thousand in the same period in 2022.● Revenues for H1 2023 were $12.1 million compared to $13.9 million for the same period in 2022, a 12.4% decrease.o Products revenue was $4.2 million in H1 2023 compared to $6.9 million in the same period in 2022, a decrease of 40.2%, primarily due to decreased cogeneration and chiller sales into our key market segments including controlled environment agriculture.o Services revenue was $7.1 million in H1 2023 compared to $6.0 million in the same period in 2022, an increase of 18.8%, primarily due to revenue from the acquired Aegis maintenance contracts and a 8.3% increase in revenue from existing contracts.o Energy Production revenue decreased 5.6%, to $0.88 million in H1 2023 compared to $0.94 million in the same period in 2022 due to temporary maintenance work on two sites.Gross Profit and Gross Margin● Gross profit for the second quarter of 2023 was $2.8 million compared to $2.7 million in the second quarter of 2022. Gross margin was 42.0% in the first quarter compared to 42.1% for the same period in 2022. Products margin increased to 33.8% from 33.0%, while Services margin decreased to 47.5% from 51.7%, due to higher labor and material costs. In particular, as supply chain constraints for engines eased, we performed significant engine related replacements and upgrades which negatively impacted Service margins.● Gross profit for H1 2023 decreased to $4.9 million compared to $5.8 million in the same period in 2022, a decrease of $0.9 million. Gross margin decreased to 40.6% in the first half of 2023 compared to 41.8% for the same period in 2022 due to higher labor and material costs which reduced Products margin to 31.9% from 32.9% and Services margin to 46.2% from 52.4%. In particular, as supply chain constraints for engines eased, we performed a significant number of engine replacements in H2 2023 which negatively impacted Service margins. Energy Production margin deceased to 36.9% from 40.4% due to decreased runtime at the sites.Operating Expenses● Operating expenses increased by 2.7% to $3.6 million for the second quarter of 2023 compared to $3.5 million in the same period in 2022 due to increases in business insurance and consulting costs, attributable in part to the Aegis acquisition.● Operating expenses increased by 9.6% to $7.2 million for the first half of 2023 compared to $6.5 million in the same period in 2022 due to increases in business insurance, travel, and consulting costs, attributable in part to the Aegis acquisition.Adjusted EBITDA(1) was negative $592 thousand for the second quarter of 2023 compared to a negative $651 thousand for the second quarter of 2022. Adjusted EBITDA(1) was negative $1.9 million for the first half of 2023 compared to negative $448 thousand for the first half of 2022. (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).Conference Call Scheduled for August 10, 2023, at 9:30 am ETTecogen will host a conference call on August 10, 2023 to discuss the second quarter results beginning at 9:30 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 Second Quarter 2023 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 3,200 units, supported by an established network of engineering, sales, and service personnel across the United States. For more information, please visit www.tecogen.com or contact us for a free Site Assessment.Tecogen, InVerde e+, 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, our Quarterly Reports on Form 10-Q and on our Form 8-K, under “Risk Factors”, among the factors that could cause actual results to differ materially from past and projected future results are the following: fluctuations in demand for our products and services, competing technological developments, issues relating to research and development, the availability of incentives, rebates, and tax benefits relating to our products and services, changes in the regulatory environment relating to our products and services, integration of acquired business operations, and the ability to obtain financing on favorable terms to fund existing operations and anticipated growth.In addition to GAAP financial measures, this press release includes certain non-GAAP financial measures, including adjusted EBITDA which excludes certain expenses as described in the presentation. We use Adjusted EBITDA as an internal measure of business operating performance and believe that the presentation of non-GAAP financial measures provides a meaningful perspective of the underlying operating performance of our current business and enables investors to better understand and evaluate our historical and prospective operating performance by eliminating items that vary from period to period without correlation to our core operating performance and highlights trends in our business that may not otherwise be apparent when relying solely on GAAP financial measures.Tecogen Media & Investor Relations Contact Information: Abinand RangeshP: 781-466-6487E: Abinand.Rangesh@tecogen.comTECOGEN INC.CONDENSED CONSOLIDATED BALANCE SHEETS(unaudited) June 30, 2023 December 31, 2022ASSETS Current assets: Cash and cash equivalents$1,871,063 $1,913,969 Accounts receivable, net 5,614,291 6,714,122 Unbilled revenue 1,748,336 1,805,330 Employee retention credit receivable 46,148 713,269 Inventories, net 12,027,525 10,482,729 Prepaid and other current assets 467,390 401,189 Total current assets 21,774,753 22,030,608 Long-term assets: Property, plant and equipment, net 1,352,318 1,407,720 Right of use assets 920,690 1,245,549 Intangible assets, net 2,421,379 997,594 Goodwill 3,129,147 2,406,156 Other assets 201,898 165,230 TOTAL ASSETS$29,800,185 $28,252,857 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable 4,212,914 3,261,952 Accrued expenses 2,554,000 2,384,447 Deferred revenue, current 2,086,174 1,115,627 Lease obligations, current 513,811 687,589 Acquisition liabilities, current 649,241 — Unfavorable contract liability, current 213,559 236,705 Total current liabilities 10,229,699 7,686,320 Long-term liabilities: Deferred revenue, net of current portion 154,149 371,823 Lease obligations, net of current portion 459,372 623,452 Acquisition liabilities, net of current portion 1,643,567 — Unfavorable contract liability, net of current portion 490,802 583,512 Total liabilities 12,977,589 9,265,107 Stockholders’ equity: Tecogen Inc. shareholders’ equity: Common stock, $0.001 par value; 100,000,000 shares authorized; 24,850,261 issued and outstanding at June 30, 2023 and December 31, 2022 24,850 24,850 Additional paid-in capital 57,456,945 57,351,008 Accumulated deficit (40,551,687) (38,281,548) Total Tecogen Inc. stockholders’ equity 16,930,108 19,094,310 Non-controlling interest (107,512) (106,560) Total stockholders’ equity 16,822,596 18,987,750 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY$29,800,185 $28,252,857 TECOGEN INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(unaudited) Three Months Ended June 30, 2023 June 30, 2022Revenues Products$2,445,631 $3,010,115 Services 3,952,971 3,050,191 Energy production 350,156 354,287 Total revenues 6,748,758 6,414,593 Cost of sales Products 1,618,456 2,015,466 Services 2,075,869 1,473,586 Energy production 220,007 222,092 Total cost of sales 3,914,332 3,711,144 Gross profit 2,834,426 2,703,449 Operating expenses General and administrative 2,917,283 2,824,832 Selling 480,786 503,601 Research and Development 236,556 194,853 Gain on disposition of assets (19,950) (2,500) Total operating expenses 3,614,675 3,520,786 Loss from operations (780,249) (817,337) Other income (expense) Interest and other income (expense), net (21,061) (1,265) Interest expense (1,857) (12,733) Unrealized gain on investment securities 37,497 — Total other income (expense), net 14,579 (13,998) Loss before provision for state income taxes (765,670) (831,335) Provision for state income taxes 9,614 6,500 Consolidated net loss (775,284) (837,835) Income attributable to the non-controlling interest (4,826) (18,383) Net loss attributable to Tecogen Inc.$(780,110) $(856,218) Net loss per share – basic$(0.03) $(0.03) Net loss per share – diluted$(0.03) $(0.03) Weighted average shares outstanding - basic 24,850,261 24,850,261 Weighted average shares outstanding - diluted 24,850,261 24,850,261 Three Months Ended June 30, 2023 June 30, 2022Non-GAAP financial disclosure (1) Net loss attributable to Tecogen Inc.$(780,110) $(856,218) Interest expense, net 1,857 12,733 Income taxes 9,614 6,500 Depreciation & amortization, net 185,175 95,985 EBITDA (583,464) (741,000) Stock based compensation 28,589 89,893 Unrealized gain on investment securities (37,497) — Adjusted EBITDA$(592,372) $(651,107) TECOGEN INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(unaudited) Six Months Ended June 30, 2023 June 30, 2022Revenues Products$4,155,767 $6,949,596 Services 7,089,144 5,967,471 Energy production 883,665 935,849 Total revenues 12,128,576 13,852,916 Cost of sales Products 2,831,024 4,660,221 Services 3,813,471 2,840,338 Energy production 557,746 558,119 Total cost of sales 7,202,241 8,058,678 Gross profit 4,926,335 5,794,238 Operating expenses General and administrative 5,709,766 5,298,735 Selling 1,000,856 1,004,692 Research and development 465,658 334,988 Gain on disposition of assets (19,950) (36,445) Gain on termination of unfavorable contract liability — (71,375) Total operating expenses 7,156,330 6,530,595 Loss from operations (2,229,995) (736,357) Other income (expense) Interest and other income (expense), net (20,231) (15,416) Interest expense (2,272) (13,561) Unrealized gain on investment securities 37,497 37,497 Total other income (expense), net 14,994 8,520 Loss before provision for state income taxes (2,215,001) (727,837) Provision for state income taxes 32,252 10,430 Consolidated net loss (2,247,253) (738,267) Income attributable to non-controlling interest (22,886) (28,542) Net loss attributable to Tecogen Inc.$(2,270,139) $(766,809) Net income loss per share – basic$(0.09) $(0.03) Net income loss per share – diluted$(0.09) $(0.03) Weighted average shares outstanding - basic 24,850,261 24,850,261 Weighted average shares outstanding - diluted 24,850,261 28,250,261 Six Months Ended June 30, 2023 June 30, 2022Non-GAAP financial disclosure (1) Net loss attributable to Tecogen Inc.$(2,270,139) $(766,809) Interest expense, net 2,272 13,561 Income taxes 32,252 10,430 Depreciation & amortization, net 291,095 217,718 EBITDA (1,944,520) (525,100) Stock based compensation 105,937 185,600 Unrealized gain on marketable securities (37,497) (37,497) Gain on termination of unfavorable contract liability — (71,375) Adjusted EBITDA$(1,876,080) $(448,372) (1) Non-GAAP Financial MeasuresIn addition to reporting net income, a U.S. generally accepted accounting principle (“GAAP”) measure, this news release contains information about Adjusted EBITDA (net income (loss) attributable to Tecogen Inc adjusted for interest, income taxes, depreciation and amortization, stock-based compensation expense, unrealized gain or loss on investment securities, goodwill impairment charges and other non-cash non-recurring charges including abandonment of certain intangible assets and extinguishment of debt), which is a non-GAAP measure. The Company believes Adjusted EBITDA allows investors to view its performance in a manner similar to the methods used by management and provides additional insight into its operating results. Adjusted EBITDA is not calculated through the application of GAAP. Accordingly, it should not be considered as a substitute for the GAAP measure of net income and, therefore, should not be used in isolation of, but in conjunction with, the GAAP measure. The use of any non-GAAP measure may produce results that vary from the GAAP measure and may not be comparable to a similarly defined non-GAAP measure used by other companies.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(unaudited) Six Months Ended June 30, 2023 June 30, 2022CASH FLOWS FROM OPERATING ACTIVITIES: Consolidated net loss$(2,247,253) $(738,267) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation and amortization 291,095 217,718 Stock-based compensation 105,937 185,600 Provision for doubtful accounts 44,000 46,000 Gain on disposition of assets (19,950) (36,445) Unrealized gain on investment securities (37,497) (37,497) Gain on termination of unfavorable contract liability — (71,375) Changes in operating assets and liabilities (Increase) decrease in: Accounts receivable 755,831 (444,541) Employee retention credit receivable 667,121 562,752 Unbilled revenue 56,994 1,117,057 Inventory (1,133,618) (438,102) Prepaid assets and other current assets (66,201) (22,618) Other assets 325,688 308,282 Increase (decrease) in: Accounts payable 839,784 (247,876) Accrued expenses and other current liabilities 178,241 (74,490) Deferred revenue 752,873 (5 89,158) Other liabilities (359,369) (316,217) Net cash provided by (used in) operating activities 153,676 (579,177) CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property and equipment (19,607) (209,034) Payment for business acquisition (170,000) — Purchases of intangible assets — (29,505) Proceeds from disposition of assets 16,863 67,169 Distributions to non-controlling interest (23,838) (32,809) Net cash used in investing activities (196,582) (204,179) CASH FLOWS FROM FINANCING ACTIVITIES: Net cash provided by financing activities — — Change in cash and cash equivalents (42,906) (783,356) Cash and cash equivalents, beginning of the period 1,913,969 3,614,463 Cash and cash equivalents, end of the period$1,871,063 $2,831,107 View the original release on www.newmediawire.com
Q2 2023 Revenue of $6.7 Million, an Increase of 5.2% QoQ WALTHAM, MA - (NewMediaWire) - August 09, 2023 - Tecogen Inc. (OTCQX:TGEN), a leading manufacturer of clean energy products, reported revenues of $6.7 million and a net loss of $0.8 million for the quarter ended June 30, 2023 compared to revenues of $6.4 million, and a net loss of $0.9 million in 2022. For the six months ended June 30, 2023 revenues were $12.1 million and the net loss was $2.3 million compared to revenues of $13.9 million, and net loss of $0.8 million for the same period in 2022."We saw an increase in revenues compared to both Q1 2023 and Q2 2022 of 25% and 5% respectively. Our sales backlog has increased from $7.1 million at the end of Q1 to $8.3 million at the end of Q2 to $11.3 million today. This backlog does not include our recurring service revenue. The Aegis service contract acquisition meant we had service revenues of almost $4 million this quarter or a 30% increase. We finished the quarter with $1.87 million in cash as we generated cash from operations in Q2 2023 and H1 2023. Overall we made substantial progress towards turning around the business and meeting the objectives we set out earlier in the year." commented Abinand Rangesh, Tecogen's Chief Executive Officer.Key TakeawaysNet Income and Earnings Per Share● Net loss in Q2 2023 was $0.8 million compared to net loss of $0.9 million in Q2 2022, a decrease of $0.1 million, primarily due to higher Services segment revenue and gross profit. EPS was a loss of $0.03/share in both Q2 2023 and Q2 2022, respectively.● Net loss in H1 2023 was $2.3 million compared to net loss of $0.8 million in Q2 2022, an increase of $1.5 million, due primarily to lower Products segment revenue and gross profit and an increase in operating expenses. EPS was a net loss of $0.09/share and a net loss of $0.03/share in H1 2023 and H1 2022, respectively.Loss from Operations● Loss from operations for the three months ended June 30, 2023 was $0.8 million compared to a loss of $0.8 million for the same period in 2022.● Loss from operations for H1 2023 was $2.2 million compared to a loss of $0.7 million for the same period in 2022, an increase of $1.5 million. The loss from operations increased due to lower revenue and gross profit margins in our Products segment and increased operating expenses.Revenues● Revenues for the quarter ended June 30, 2023 were $6.7 million compared to $6.4 million for the same period in 2022, a 5.2% increase.o Products revenue was $2.4 million in Q2 2023 compared to $3.0 million in the same period in 2022, a decrease of 18.8%, primarily due to decreased cogeneration and chiller sales into our key market segments including controlled environment agriculture.o Services revenue was $4.0 million in Q2 2023 compared to $3.1 million in the same period in 2022, an increase of 29.6%, primarily due to revenue from the acquired Aegis maintenance contracts and a 9.0% increase in revenue from existing contracts.o Energy Production revenue decreased 1.2%, to $350 thousand in Q2 2023 compared to $354 thousand in the same period in 2022.● Revenues for H1 2023 were $12.1 million compared to $13.9 million for the same period in 2022, a 12.4% decrease.o Products revenue was $4.2 million in H1 2023 compared to $6.9 million in the same period in 2022, a decrease of 40.2%, primarily due to decreased cogeneration and chiller sales into our key market segments including controlled environment agriculture.o Services revenue was $7.1 million in H1 2023 compared to $6.0 million in the same period in 2022, an increase of 18.8%, primarily due to revenue from the acquired Aegis maintenance contracts and a 8.3% increase in revenue from existing contracts.o Energy Production revenue decreased 5.6%, to $0.88 million in H1 2023 compared to $0.94 million in the same period in 2022 due to temporary maintenance work on two sites.Gross Profit and Gross Margin● Gross profit for the second quarter of 2023 was $2.8 million compared to $2.7 million in the second quarter of 2022. Gross margin was 42.0% in the first quarter compared to 42.1% for the same period in 2022. Products margin increased to 33.8% from 33.0%, while Services margin decreased to 47.5% from 51.7%, due to higher labor and material costs. In particular, as supply chain constraints for engines eased, we performed significant engine related replacements and upgrades which negatively impacted Service margins.● Gross profit for H1 2023 decreased to $4.9 million compared to $5.8 million in the same period in 2022, a decrease of $0.9 million. Gross margin decreased to 40.6% in the first half of 2023 compared to 41.8% for the same period in 2022 due to higher labor and material costs which reduced Products margin to 31.9% from 32.9% and Services margin to 46.2% from 52.4%. In particular, as supply chain constraints for engines eased, we performed a significant number of engine replacements in H2 2023 which negatively impacted Service margins. Energy Production margin deceased to 36.9% from 40.4% due to decreased runtime at the sites.Operating Expenses● Operating expenses increased by 2.7% to $3.6 million for the second quarter of 2023 compared to $3.5 million in the same period in 2022 due to increases in business insurance and consulting costs, attributable in part to the Aegis acquisition.● Operating expenses increased by 9.6% to $7.2 million for the first half of 2023 compared to $6.5 million in the same period in 2022 due to increases in business insurance, travel, and consulting costs, attributable in part to the Aegis acquisition.Adjusted EBITDA(1) was negative $592 thousand for the second quarter of 2023 compared to a negative $651 thousand for the second quarter of 2022. Adjusted EBITDA(1) was negative $1.9 million for the first half of 2023 compared to negative $448 thousand for the first half of 2022. (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).Conference Call Scheduled for August 10, 2023, at 9:30 am ETTecogen will host a conference call on August 10, 2023 to discuss the second quarter results beginning at 9:30 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 Second Quarter 2023 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 3,200 units, supported by an established network of engineering, sales, and service personnel across the United States. For more information, please visit www.tecogen.com or contact us for a free Site Assessment.Tecogen, InVerde e+, 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, our Quarterly Reports on Form 10-Q and on our Form 8-K, under “Risk Factors”, among the factors that could cause actual results to differ materially from past and projected future results are the following: fluctuations in demand for our products and services, competing technological developments, issues relating to research and development, the availability of incentives, rebates, and tax benefits relating to our products and services, changes in the regulatory environment relating to our products and services, integration of acquired business operations, and the ability to obtain financing on favorable terms to fund existing operations and anticipated growth.In addition to GAAP financial measures, this press release includes certain non-GAAP financial measures, including adjusted EBITDA which excludes certain expenses as described in the presentation. We use Adjusted EBITDA as an internal measure of business operating performance and believe that the presentation of non-GAAP financial measures provides a meaningful perspective of the underlying operating performance of our current business and enables investors to better understand and evaluate our historical and prospective operating performance by eliminating items that vary from period to period without correlation to our core operating performance and highlights trends in our business that may not otherwise be apparent when relying solely on GAAP financial measures.Tecogen Media & Investor Relations Contact Information: Abinand RangeshP: 781-466-6487E: Abinand.Rangesh@tecogen.comTECOGEN INC.CONDENSED CONSOLIDATED BALANCE SHEETS(unaudited) June 30, 2023 December 31, 2022ASSETS Current assets: Cash and cash equivalents$1,871,063 $1,913,969 Accounts receivable, net 5,614,291 6,714,122 Unbilled revenue 1,748,336 1,805,330 Employee retention credit receivable 46,148 713,269 Inventories, net 12,027,525 10,482,729 Prepaid and other current assets 467,390 401,189 Total current assets 21,774,753 22,030,608 Long-term assets: Property, plant and equipment, net 1,352,318 1,407,720 Right of use assets 920,690 1,245,549 Intangible assets, net 2,421,379 997,594 Goodwill 3,129,147 2,406,156 Other assets 201,898 165,230 TOTAL ASSETS$29,800,185 $28,252,857 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable 4,212,914 3,261,952 Accrued expenses 2,554,000 2,384,447 Deferred revenue, current 2,086,174 1,115,627 Lease obligations, current 513,811 687,589 Acquisition liabilities, current 649,241 — Unfavorable contract liability, current 213,559 236,705 Total current liabilities 10,229,699 7,686,320 Long-term liabilities: Deferred revenue, net of current portion 154,149 371,823 Lease obligations, net of current portion 459,372 623,452 Acquisition liabilities, net of current portion 1,643,567 — Unfavorable contract liability, net of current portion 490,802 583,512 Total liabilities 12,977,589 9,265,107 Stockholders’ equity: Tecogen Inc. shareholders’ equity: Common stock, $0.001 par value; 100,000,000 shares authorized; 24,850,261 issued and outstanding at June 30, 2023 and December 31, 2022 24,850 24,850 Additional paid-in capital 57,456,945 57,351,008 Accumulated deficit (40,551,687) (38,281,548) Total Tecogen Inc. stockholders’ equity 16,930,108 19,094,310 Non-controlling interest (107,512) (106,560) Total stockholders’ equity 16,822,596 18,987,750 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY$29,800,185 $28,252,857 TECOGEN INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(unaudited) Three Months Ended June 30, 2023 June 30, 2022Revenues Products$2,445,631 $3,010,115 Services 3,952,971 3,050,191 Energy production 350,156 354,287 Total revenues 6,748,758 6,414,593 Cost of sales Products 1,618,456 2,015,466 Services 2,075,869 1,473,586 Energy production 220,007 222,092 Total cost of sales 3,914,332 3,711,144 Gross profit 2,834,426 2,703,449 Operating expenses General and administrative 2,917,283 2,824,832 Selling 480,786 503,601 Research and Development 236,556 194,853 Gain on disposition of assets (19,950) (2,500) Total operating expenses 3,614,675 3,520,786 Loss from operations (780,249) (817,337) Other income (expense) Interest and other income (expense), net (21,061) (1,265) Interest expense (1,857) (12,733) Unrealized gain on investment securities 37,497 — Total other income (expense), net 14,579 (13,998) Loss before provision for state income taxes (765,670) (831,335) Provision for state income taxes 9,614 6,500 Consolidated net loss (775,284) (837,835) Income attributable to the non-controlling interest (4,826) (18,383) Net loss attributable to Tecogen Inc.$(780,110) $(856,218) Net loss per share – basic$(0.03) $(0.03) Net loss per share – diluted$(0.03) $(0.03) Weighted average shares outstanding - basic 24,850,261 24,850,261 Weighted average shares outstanding - diluted 24,850,261 24,850,261 Three Months Ended June 30, 2023 June 30, 2022Non-GAAP financial disclosure (1) Net loss attributable to Tecogen Inc.$(780,110) $(856,218) Interest expense, net 1,857 12,733 Income taxes 9,614 6,500 Depreciation & amortization, net 185,175 95,985 EBITDA (583,464) (741,000) Stock based compensation 28,589 89,893 Unrealized gain on investment securities (37,497) — Adjusted EBITDA$(592,372) $(651,107) TECOGEN INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(unaudited) Six Months Ended June 30, 2023 June 30, 2022Revenues Products$4,155,767 $6,949,596 Services 7,089,144 5,967,471 Energy production 883,665 935,849 Total revenues 12,128,576 13,852,916 Cost of sales Products 2,831,024 4,660,221 Services 3,813,471 2,840,338 Energy production 557,746 558,119 Total cost of sales 7,202,241 8,058,678 Gross profit 4,926,335 5,794,238 Operating expenses General and administrative 5,709,766 5,298,735 Selling 1,000,856 1,004,692 Research and development 465,658 334,988 Gain on disposition of assets (19,950) (36,445) Gain on termination of unfavorable contract liability — (71,375) Total operating expenses 7,156,330 6,530,595 Loss from operations (2,229,995) (736,357) Other income (expense) Interest and other income (expense), net (20,231) (15,416) Interest expense (2,272) (13,561) Unrealized gain on investment securities 37,497 37,497 Total other income (expense), net 14,994 8,520 Loss before provision for state income taxes (2,215,001) (727,837) Provision for state income taxes 32,252 10,430 Consolidated net loss (2,247,253) (738,267) Income attributable to non-controlling interest (22,886) (28,542) Net loss attributable to Tecogen Inc.$(2,270,139) $(766,809) Net income loss per share – basic$(0.09) $(0.03) Net income loss per share – diluted$(0.09) $(0.03) Weighted average shares outstanding - basic 24,850,261 24,850,261 Weighted average shares outstanding - diluted 24,850,261 28,250,261 Six Months Ended June 30, 2023 June 30, 2022Non-GAAP financial disclosure (1) Net loss attributable to Tecogen Inc.$(2,270,139) $(766,809) Interest expense, net 2,272 13,561 Income taxes 32,252 10,430 Depreciation & amortization, net 291,095 217,718 EBITDA (1,944,520) (525,100) Stock based compensation 105,937 185,600 Unrealized gain on marketable securities (37,497) (37,497) Gain on termination of unfavorable contract liability — (71,375) Adjusted EBITDA$(1,876,080) $(448,372) (1) Non-GAAP Financial MeasuresIn addition to reporting net income, a U.S. generally accepted accounting principle (“GAAP”) measure, this news release contains information about Adjusted EBITDA (net income (loss) attributable to Tecogen Inc adjusted for interest, income taxes, depreciation and amortization, stock-based compensation expense, unrealized gain or loss on investment securities, goodwill impairment charges and other non-cash non-recurring charges including abandonment of certain intangible assets and extinguishment of debt), which is a non-GAAP measure. The Company believes Adjusted EBITDA allows investors to view its performance in a manner similar to the methods used by management and provides additional insight into its operating results. Adjusted EBITDA is not calculated through the application of GAAP. Accordingly, it should not be considered as a substitute for the GAAP measure of net income and, therefore, should not be used in isolation of, but in conjunction with, the GAAP measure. The use of any non-GAAP measure may produce results that vary from the GAAP measure and may not be comparable to a similarly defined non-GAAP measure used by other companies.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(unaudited) Six Months Ended June 30, 2023 June 30, 2022CASH FLOWS FROM OPERATING ACTIVITIES: Consolidated net loss$(2,247,253) $(738,267) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation and amortization 291,095 217,718 Stock-based compensation 105,937 185,600 Provision for doubtful accounts 44,000 46,000 Gain on disposition of assets (19,950) (36,445) Unrealized gain on investment securities (37,497) (37,497) Gain on termination of unfavorable contract liability — (71,375) Changes in operating assets and liabilities (Increase) decrease in: Accounts receivable 755,831 (444,541) Employee retention credit receivable 667,121 562,752 Unbilled revenue 56,994 1,117,057 Inventory (1,133,618) (438,102) Prepaid assets and other current assets (66,201) (22,618) Other assets 325,688 308,282 Increase (decrease) in: Accounts payable 839,784 (247,876) Accrued expenses and other current liabilities 178,241 (74,490) Deferred revenue 752,873 (5 89,158) Other liabilities (359,369) (316,217) Net cash provided by (used in) operating activities 153,676 (579,177) CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property and equipment (19,607) (209,034) Payment for business acquisition (170,000) — Purchases of intangible assets — (29,505) Proceeds from disposition of assets 16,863 67,169 Distributions to non-controlling interest (23,838) (32,809) Net cash used in investing activities (196,582) (204,179) CASH FLOWS FROM FINANCING ACTIVITIES: Net cash provided by financing activities — — Change in cash and cash equivalents (42,906) (783,356) Cash and cash equivalents, beginning of the period 1,913,969 3,614,463 Cash and cash equivalents, end of the period$1,871,063 $2,831,107 View the original release on www.newmediawire.com