Exhibit 99.01


Ilios Earned Net Profit in Second Quarter

WALTHAM, Mass., August 6, 2015, Ilios Dynamics Inc., a majority owned subsidiary of Tecogen® Inc. (NASDAQ:TGEN), a manufacturer and installer of high efficiency water heaters and natural gas heat pump for industrial and commercial use, reported revenues of $889,894 for the six months ended June 30, 2015. Although the six months results show a loss, Ilios was profitable in the second quarter with a net income of $88,226.

Major Highlights:

Financial
◦
During the second quarter, Ilios had its first positive quarterly net income.
◦
Previously announced review and analysis of acquisition of remaining non-controlling interest by Tecogen has begun.

Sales & Operations
◦
Nine gas heat pumps were shipped in the quarter, the highest single quarterly shipment total since the Company's establishment.
◦
Current orders and backlog for the remainder of 2015 is more double any previous year, and is on track to surpass $1.2 million dollars in revenue.



About Ilios
Ilios Dynamics Inc., a subsidiary of Tecogen Inc., was formed in April 2009 to develop and distribute a line of ultra high-efficiency heating products for commercial and industrial applications utilizing advanced thermodynamic principles. Products incorporate mechanical work to extract heat from the environment to supplement chemical energy available from natural gas or propane. The result is a significant boost in efficiency and reduced carbon emissions relative to conventional heating systems. Please visit www.iliosdynamics.com.  

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 residential, commercial, recreational and industrial use. The company is known for cost efficient, environmentally friendly and reliable products for energy production that, through patented technology, nearly eliminate criteria pollutants and significantly reduce a building’s carbon footprint.

In business for over 20 years, 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.






Exhibit 99.01


Unaudited Historic Financial Information
ILIOS DYNAMICS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
As of December 31, 2012, 2013, 2014 and June 30, 2015
(unaudited)
 
June 30,
 
December 31,
 
2015
 
2014
2013
2012
ASSETS
 
 
 
 
 
Current assets:
 

 
 
 
 

Cash and cash equivalents
$
129,894

 
$
274,671

$
52,050

$
518,457

Accounts receivable, net
532,416

 
267,680

—

—

Inventory, net
70,254

 
220,254

130,000

—

Prepaid and other current assets
6,500

 
6,220

6,340

—

Total current assets
739,064

 
768,825

188,390

518,457

Property, plant and equipment, net
4,302

 
5,930

22,648

80,115

Intangible assets, net
74,811

 
76,747

61,153

17,315

TOTAL ASSETS
$
818,177

 
$
851,502

$
272,191

$
615,887

LIABILITIES AND STOCKHOLDERS’ EQUITY
 

 
 
 
 

Current liabilities:
 

 
 
 
 

Accounts payable
$
1,668,266

 
$
1,666,138

$
840,255

$
134,676

Deferred revenue
93,000

 
24,000

15,000

—

Customer Deposits
61,430

 
158,917

—

—

Total current liabilities
1,822,696

 
1,849,055

855,255

134,676

 
 
 
 
 
 
Stockholders’ equity:
 

 
 
 
 

Common stock, $0.001 par value
14,920

 
14,920

14,920

15,120

Additional paid-in capital
3,199,213

 
3,192,957

3,183,159

3,224,470

Accumulated deficit
(4,218,652
)
 
(4,205,430
)
(3,781,143
)
(2,758,379
)
Total stockholders’ equity
(1,004,519
)
 
(997,553
)
(583,064
)
481,211

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
$
818,177

 
$
851,502

$
272,191

$
615,887


ILIOS DYNAMICS INC.
STATEMENTS OF OPERATIONS
For the years ended December 31, 2012, 2013 and 2014, and six months ended June 30, 2015
(unaudited)
 
First six months of
 
 
 
 
 
 
 
2015
 
2014
 
2013
 
2012
Revenues
889,894

 
461,395

 
259,335

 
35,000

Cost of goods sold
618,319

 
367,710

 
437,361

 
32,620

Gross profit
271,575

 
93,685

 
(178,026
)

2,380

Operating expenses
 

 
 

 
 
 
 
General and administrative
234,450

 
415,029

 
737,805


1,007,042

Selling
8,386

 
36,632

 
85,035

 
35,265

Total operating expenses
242,836

 
451,661

 
822,840


1,042,307

Loss from operations
28,739

 
(357,976
)
 
(1,000,866
)

(1,039,927
)
Other income (expense)
(41,962
)
 
(66,311
)
 
(21,898
)
 
2,593

Consolidated net loss
(13,223
)
 
(424,287
)
 
(1,022,764
)

(1,037,334
)


Exhibit 99.01

ILIOS DYNAMICS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the six months ended June 30, 2015 and year ended December 31, 2014 and 2013.
(unaudited)
 
June 30,
 
December 31,
 
December 31,
 
2015
 
2014
 
2013
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
 
 
Net loss
$
(13,222
)
 
$
(424,287
)
 
$
(1,022,764
)
Adjustments to reconcile net loss to net cash used in operating activities:
 
 
 
 
 
Depreciation and amortization
10,615

 
27,837

 
62,754

Stock-based compensation
6,256

 
9,798

 
(41,511
)
Changes in operating assets and liabilities
 
 
 
 
 
(Increase) decrease in:
 
 
 
 
 
Accounts receivable
(264,736
)
 
(267,680
)
 
—

Inventory, net
150,000

 
(90,254
)
 
(130,000
)
Prepaid expenses and other current assets
(280
)
 
120

 
(6,340
)
Increase (decrease) in:
 
 
 
 
 
Accounts payable
2,128

 
825,883

 
705,579

Accrued expenses
(97,487
)
 
158,917

 
—

Deferred revenue
69,000

 
9,000

 
15,000

Net cash used in operating activities
(137,726
)
 
249,334

 
(417,282
)
CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
 
 
Purchases of property and equipment
—

 
(2,713
)
 
(1,000
)
Purchases of intangible assets
(7,051
)
 
(24,000
)
 
(48,125
)
Net cash used in investing activities
(7,051
)
 
(26,713
)
 
(49,125
)
Net increase (decrease) in cash and cash equivalents
(144,777
)
 
222,621

 
(466,407
)
Cash and cash equivalents, beginning of the period
274,671

 
52,050

 
518,457

Cash and cash equivalents, end of the period
$
129,894

 
$
274,671

 
$
52,050