Exhibit 99.1
Tecogen Announces Third Quarter Earnings
Quarterly Revenue expands by 44% as compared to the same period in 2013

WALTHAM, Mass., November 13, 2014, Tecogen® Inc. (NASDAQ:TGEN), a manufacturer and installer of high efficiency, UltraTM clean combined heat and power products including natural gas engine-driven cogeneration, air conditioning systems, and high-efficiency water heaters for industrial and commercial use, reported revenues of $4,175,863 in the three months ended September 30, 2014, compared to $2,893,240 for the same period in 2013, an increase of 44%.

Major Highlights:

Financial
•
Product and Installation revenue increased by 148% compared to same period in 2013.
•
Service revenue was comparatively flat as the company temporarily diverted service manpower in bringing new service center online in Brooklyn.
•
Sales backlog of equipment and installations was $14.2 million at quarter end, compared to $12 million at the end of the second quarter.
•
Gross profit for the three months ended September 30, 2014 was $1,089,471 compared to $1,092,632, respectively for the same period in 2013.
•
Gross margins decreased to 26% from 38% for the quarter ended September 30, 2014 compared to the same period in 2013. The margin decrease is attributed to a large chiller order requiring significant design and fabrication upgrades to modernize the model line for this and future sales. These upgrades related to emissions after-treatment and a newer refrigerant. The company also incurred warranty expenses to complete a component exchange in our cogeneration systems to extend its useful service life.   
•
Research and development expenses for the year and the quarter were $889,240 and $329,524, respectively, as the Company continues to expand development of its technology and secure necessary intellectual property.
•
Net loss for the three months ended September 30, 2014 was $1,467,734 compared to $1,414,517 for the same period in 2013. Our goal is for operations to be profitable by year end.
•
Net loss per share was $0.09 and $0.11 for the three months ended September 30, 2014 and 2013.

Sales & Operations

•
Orders for gas fired chillers continue to grow with additional sales in the US and Mexico.
•
Received our first order for Tecogen Ultra Emission System applied to a renewable gas engine in Southern California.
•
Received our first order for Tecogen Ultra Emission System applied in a natural gas emergency generator requiring air permit for extended hours of operation in Southern California.
•
Steady growth in orders for Ilios Water Sourced Heat Pumps with backlog of 8 units at quarter end.
•
Closed the sale of a tri-generation energy system for a large New Jersey hotel.
•
Announced the promotion of Benjamin Locke to Co-Chief Executive Officer.
•
Announced the hiring of John Maloney as Manufacturing Manager.









Conference Call Scheduled for Today at 12:00 pm ET
Tecogen will host a conference call today to discuss the third quarter results beginning at 12:00 pm ET. To listen to the call dial (877) 870 4263 within the U.S., (855) 669-9657 from Canada, or (412) 317-0790 from other international locations. Participants should reference Tecogen to access the call. The conference call will be recorded and available for playback one hour after the end of the call through Thursday December 4th. 
The earnings conference call will also be webcast live. To register for and listen to the webcast, go to http://investors.tecogen.com/webcast. Following the call, the webcast will be archived for 30 days.

About Tecogen

Tecogen manufactures, installs and maintains high efficiency, Ultra-clean Combined Heat and Power products including natural gas engine-driven cogeneration, air conditioning systems, and high-efficiency water heaters for industrial and commercial use. Tecogen has shipped more than 2,000 units, supported by an established network of engineering, sales, and service personnel across the United States. For more information, please visit www.tecogen.com.

FORWARD-LOOKING STATEMENTS This press release contains forward-looking statements under the Private Securities Litigation Reform Act of 1995 that involve a number of risks and uncertainties. Important factors could cause actual results to differ materially from those indicated by such forward-looking statements, as disclosed on the Company's website and in Securities and Exchange Commission filings. The statements in this press release are made as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company does not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.

Tecogen Media Contact Information:
David A. Garrison
Tecogen Inc.
P: 781-466-6403
E: david.garrison@tecogen.com

Tecogen Investor Contact Information:
John N. Hatsopoulos
P: 781-622-1120
E: jhatsopoulos@tecogen.com





CONSOLIDATED BALANCE SHEETS
As of September 30, 2014 and December 31, 2013 
(unaudited)
 
September 30, 2014
 
December 31, 2013
ASSETS
 
 
 
Current assets:
 

 
 

Cash and cash equivalents
$
2,446,082

 
$
7,713,899

Short-term investments, restricted
585,038

 
—

Accounts receivable, net
4,519,544

 
3,740,885

Unbilled revenue
125,071

 
646,398

Inventory, net
4,907,435

 
3,343,793

Due from related party
125,069

 
—

Deferred financing costs, net
—

 
140,433

Prepaid and other current assets
338,257

 
340,013

Total current assets
13,046,496

 
15,925,421

Property, plant and equipment, net
631,181

 
638,026

Intangible assets, net
1,019,944

 
953,327

Goodwill
40,870

 
40,870

Deferred financing costs, net
111,843

 
—

Other assets
53,325

 
72,425

TOTAL ASSETS
$
14,903,659

 
$
17,630,069

 
 
 
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
 

 
 

Current liabilities:
 

 
 

Demand notes payable and line of credit, related party
$
—

 
$
2,950,000

Senior convertible promissory note, related party
—

 
3,000,000

Accounts payable
3,085,856

 
2,338,046

Accrued expenses
990,084

 
1,139,554

Deferred revenue
1,949,522

 
613,915

Due to related party
—

 
119,667

Interest payable, related party
—

 
198,450

Total current liabilities
6,025,462

 
10,359,632

Long-term liabilities:
 

 
 

Deferred revenue, net of current portion
184,371

 
204,544

Senior convertible promissory note, related party
3,000,000

 
—

Total liabilities
9,209,833

 
10,564,176

Commitments and contingencies (Note 5)


 


 
 
 
 
Stockholders’ equity:
 

 
 

Tecogen Inc. shareholders’ equity:
 

 
 

Common stock, $0.001 par value; 100,000,000 shares authorized; 15,809,306 and 15,155,200 issued and outstanding at September 30, 2014 and December 31, 2013, respectively
15,809

 
15,155

Additional paid-in capital
24,927,880

 
22,463,996

Accumulated deficit
(18,924,762
)
 
(15,209,212
)
Total Tecogen Inc. stockholders’ equity
6,018,927

 
7,269,939

Noncontrolling interest
(325,101
)
 
(204,046
)
Total stockholders’ equity
5,693,826

 
7,065,893

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
$
14,903,659

 
$
17,630,069





CONSOLIDATED STATEMENTS OF OPERATIONS
For the three and nine months ended September 30, 2014 and 2013
(unaudited)
 
Three months ended September 30,
 
Nine months ended September 30,
 
2014
 
2013
 
2014
 
2013
Revenues
 
 
 
 
 

 
 

Products
$
1,094,529

 
$
779,455

 
$
5,047,231

 
$
3,639,974

Services
3,081,334

 
2,113,785

 
7,884,246

 
6,103,044

Total revenues
4,175,863

 
2,893,240

 
12,931,477

 
9,743,018

Cost of sales
 
 
 
 
 

 
 

Products
1,052,199

 
571,803

 
4,043,783

 
2,793,743

Services
2,034,193

 
1,228,805

 
5,023,324

 
3,930,806

Total cost of sales
3,086,392

 
1,800,608

 
9,067,107

 
6,724,549

Gross profit
1,089,471

 
1,092,632

 
3,864,370

 
3,018,469

Operating expenses
 
 
 
 
 

 
 

General and administrative
1,751,080

 
1,437,068

 
5,424,143

 
4,358,569

Aborted public offering costs
—

 
320,924

 
—

 
320,924

Selling
476,601

 
488,895

 
1,303,329

 
1,054,366

Research and development
329,524

 
260,262

 
889,240

 
809,746

Total operating expenses
2,557,205

 
2,507,149

 
7,616,712

 
6,543,605

Loss from operations
(1,467,734
)
 
(1,414,517
)
 
(3,752,342
)
 
(3,525,136
)
Other income (expense)
 
 
 
 
 

 
 

Interest and other income
17,763

 
7,256

 
35,927

 
13,793

Interest expense
(30,666
)
 
(45,072
)
 
(122,818
)
 
(104,836
)
Total other expense, net
(12,903
)
 
(37,816
)
 
(86,891
)
 
(91,043
)
Consolidated net loss
(1,480,637
)
 
(1,452,333
)
 
(3,839,233
)
 
(3,616,179
)
Less: Loss attributable to the noncontrolling interest
32,839

 
64,654

 
123,683

 
277,627

Net loss attributable to Tecogen Inc.
$
(1,447,798
)
 
$
(1,387,679
)
 
$
(3,715,550
)
 
$
(3,338,552
)
Net loss per share - basic and diluted
$
(0.09
)
 
$
(0.11
)
 
$
(0.25
)
 
$
(0.25
)
Weighted average shares outstanding - basic and diluted
15,447,726

 
13,212,894

 
15,160,041

 
13,212,894







CONSOLIDATED STATEMENTS OF CASH FLOWS
For the nine months ended September 30, 2014 and 2013
(unaudited)
 
September 30,
 
2014
 
2013
CASH FLOWS FROM OPERATING ACTIVITIES:
 

 
 

Consolidated net loss
$
(3,839,233
)
 
$
(3,616,179
)
Adjustments to reconcile net loss to net cash used in operating activities:
 
 
 
Depreciation and amortization
250,655

 
194,260

Change in provision for allowance on accounts receivable
18,000

 
(34,700
)
Stock-based compensation
120,972

 
(8,105
)
Changes in operating assets and liabilities
 
 
 
(Increase) decrease in:
 
 
 
Accounts receivable
(796,659
)
 
433,931

Unbilled revenue
521,327

 
(140,081
)
Inventory, net
(1,563,642
)
 
(961,185
)
Due from related party
(125,069
)
 
55,837

Prepaid expenses and other current assets
1,756

 
(127,673
)
Other assets
19,100

 
(33,000
)
Increase (decrease) in:
 
 
 
Accounts payable
747,810

 
1,746,631

Accrued expenses
(149,470
)
 
283,355

Deferred revenue
1,315,434

 
270,954

Due to related party
(119,667
)
 
396,328

Interest payable, related party
(198,450
)
 
72,553

Net cash used in operating activities
(3,797,136
)
 
(1,467,074
)
CASH FLOWS FROM INVESTING ACTIVITIES:
 

 
 

Purchases of property and equipment
(148,833
)
 
(163,824
)
Disposal of property and equipment
7,569

 
—

Purchases of intangible assets
(130,905
)
 
(332,862
)
Cash paid for asset acquisition
—

 
(497,800
)
Purchases of short-term investments, restricted
(585,038
)
 
(202
)
Maturities of short-term investments, restricted
—

 
182,061

Net cash used in investing activities
(857,207
)
 
(812,627
)
CASH FLOWS FROM FINANCING ACTIVITIES:
 

 
 

Payments for debt issuance costs
(9,668
)
 
—

Payments made on demand notes payable and line of credit to related party
(2,950,000
)
 
1,200,000

Proceeds from sale of common stock and restricted common stock, net
2,340,194

 
—

Proceeds from the exercise of stock options
6,000

 
—

Purchase of unvested restricted stock
—

 
(350
)
Net cash (used in) provided by financing activities
(613,474
)
 
1,199,650

Net decrease in cash and cash equivalents
(5,267,817
)
 
(1,080,051
)
Cash and cash equivalents, beginning of the period
7,713,899

 
1,572,785

Cash and cash equivalents, end of the period
$
2,446,082

 
$
492,734

Supplemental disclosures of cash flows information:
 

 
 

Cash paid for interest
$
294,219

 
$
7,235

Cash paid for asset acquisition:
 
 
 
  Inventory
$
—

 
$
17,400

  Property and equipment
$
—

 
$
199,530

  Intangible assets
$
—

 
$
240,000

  Goodwill
$
—

 
$
40,870