Exhibit 99.02

Tecogen Announces Second Quarter Earnings
WALTHAM, Mass., August 6, 2015, Tecogen® Inc. (NASDAQ:TGEN), a manufacturer and installer of 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, reported revenues of $6,383,831 for the quarter ended June 30, 2015 compared to $4,539,857 for the same period in 2014, an increase of 41%. Gross profit increased to $2,140,890 for the quarter ended June 30, 2015 compared to $1,348,673, an increase of 59%.
Major Highlights:
Financial
•
Gross margin in the second quarter 2015 increased to 33.5% compared to 29.7% in 2014.
•
Keeping pace with growing revenues, sales backlog of equipment and installations continues at $10.8 million.
•
Gross profit for the second quarter of 2015 was $2,140,890 compared to $1,348,673, for the same period in 2014.
•
Consolidated net loss, attributable to Tecogen, for the three months ended June 30, 2015 was $362,839 compared to $1,229,707 for the same period in 2014, and the lowest second quarter loss ever reported.
•
Net loss per share was $0.02 and $0.08 for the three months ended June 30, 2015 and 2014, respectively.
•
Yesterday's announcement of a $5 million dollar private placement, and the $2 million dollar line of credit secured a month ago will insure the growth capital required for the foreseeable future.
Sales & Operations
•
Service, product and total revenue grew to the highest ever reported for a second quarter.
•
Shipped 14 InVerde modules in the quarter, the largest second quarter of the 100kW cogeneration units since their introduction.
•
As demonstrated by multiple press releases during the quarter, Tecogen continues to the be the preferred source for cogeneration equipment, engineering and installation services for the large multinational energy service companies (ESCOs). These projects with large ESCOs is an important route to long term business relationships for exclusive specification of Tecogen products.
•
Ultra Emissions programs continue to gain traction:
◦
Air permit for the Southern California genset project is in final process review. An order for the remaining units to be outfitted is expected after issuance.
•
Ilios continues rapid growth and continues pace to profitability.
◦
Ilios shipped nine gas heat pumps in the quarter, the highest single quarterly shipment total since its establishment.
◦
Current Ilios 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.
◦
During the second quarter, Ilios had its first positive quarterly net income.
Conference Call Scheduled for Today at 8:30 am ET
Tecogen will host a conference call today to discuss the second quarter results beginning at 8:30 am ET. After the conclusion of the Q&A portion of the call, listeners are invited to stay on the line for a discussion of the second quarter results for Tecogen's subsidiary, Ilios Dynamics. To listen to the call dial (888) 349-0103 within the U.S., (855) 669-9657 from Canada, or (412) 902-0129 from other international locations.  Participants should ask to be joined to the Tecogen Inc. call. Please begin dialing at least 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 conference call will be recorded and available for playback one hour after the end of the call.  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.


Exhibit 99.02

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 2,300 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




Exhibit 99.02

TECOGEN INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
As of June 30, 2015 and December 31, 2014 
(unaudited)
 
June 30, 2015
 
December 31, 2014
ASSETS
 
 
 
Current assets:
 

 
 

Cash and cash equivalents
$
1,609,719

 
$
1,186,033

Short-term investments, restricted
294,655

 
585,702

Accounts receivable, net
4,512,448

 
4,750,437

Unbilled revenue
1,592,913

 
696,912

Inventory, net
3,786,741

 
4,090,221

Due from related party
972,821

 
600,251

Deferred financing costs
50,201

 
50,201

Prepaid and other current assets
509,832

 
348,868

Total current assets
13,329,330

 
12,308,625

Property, plant and equipment, net
572,146

 
658,421

Intangible assets, net
1,054,966

 
1,011,300

Goodwill
40,870

 
40,870

Deferred financing costs, net of current portion
24,091

 
48,990

Other assets
58,425

 
53,325

TOTAL ASSETS
$
15,079,828

 
$
14,121,531

 
 
 
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
 

 
 

Current liabilities:
 

 
 

Accounts payable
$
3,332,255

 
$
2,416,313

Accrued expenses
1,339,600

 
1,008,153

Deferred revenue
776,064

 
1,666,576

Total current liabilities
5,447,919

 
5,091,042

Long-term liabilities:
 

 
 

Deferred revenue, net of current portion
384,906

 
207,153

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

 
3,000,000

Total liabilities
8,832,825

 
8,298,195

Commitments and contingencies (Note 5)


 


 
 
 
 
Stockholders’ equity:
 

 
 

Tecogen Inc. stockholders’ equity:
 

 
 

Common stock, $0.001 par value; 100,000,000 shares authorized; 16,338,782 and 15,905,881 issued and outstanding at June 30, 2015 and December 31, 2014, respectively
16,339

 
15,906

Additional paid-in capital
26,494,188

 
25,088,213

Accumulated deficit
(19,935,328
)
 
(18,955,023
)
Total Tecogen Inc. stockholders’ equity
6,575,199

 
6,149,096

Noncontrolling interest
(328,196
)
 
(325,760
)
Total stockholders’ equity
6,247,003

 
5,823,336

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
$
15,079,828

 
$
14,121,531

 


Exhibit 99.02

TECOGEN INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the three months ended June 30, 2015 and 2014
(unaudited)
 
Three months ended June 30,
 
Six months ended June 30,
 
2015
 
2014
 
2015
 
2014
Revenues
 
 
 
 
 

 
 

Products
$
3,345,571

 
$
2,007,926

 
$
6,883,446

 
$
3,952,702

Services
3,038,260

 
2,531,931

 
5,603,819

 
4,802,912

Total revenues
6,383,831

 
4,539,857

 
12,487,265

 
8,755,614

Cost of sales
 
 
 
 
 

 
 

Products
2,224,415

 
1,587,145

 
4,778,053

 
2,991,584

Services
2,018,526

 
1,604,039

 
3,343,347

 
2,989,131

Total cost of sales
4,242,941

 
3,191,184

 
8,121,400

 
5,980,715

Gross profit
2,140,890

 
1,348,673

 
4,365,865

 
2,774,899

Operating expenses
 
 
 
 
 

 
 

General and administrative
1,890,503

 
1,911,071

 
4,077,632

 
3,673,063

Selling
324,384

 
405,108

 
818,058

 
826,728

Research and development
228,318

 
251,582

 
404,481

 
559,716

Total operating expenses
2,443,205

 
2,567,761

 
5,300,171

 
5,059,507

Loss from operations
(302,315
)
 
(1,219,088
)
 
(934,306
)
 
(2,284,608
)
Other income (expense)
 
 
 
 
 

 
 

Interest and other income
685

 
15,079

 
9,788

 
18,164

Interest expense
(30,351
)
 
(57,382
)
 
(60,410
)
 
(92,152
)
Total other expense, net
(29,666
)
 
(42,303
)
 
(50,622
)
 
(73,988
)
Consolidated net loss
(331,981
)
 
(1,261,391
)
 
(984,928
)
 
(2,358,596
)
Less: (Income) loss attributable to the noncontrolling interest
(30,858
)
 
31,684

 
4,625

 
90,844

Net loss attributable to Tecogen Inc.
$
(362,839
)
 
$
(1,229,707
)
 
$
(980,303
)
 
$
(2,267,752
)
Net loss per share - basic and diluted
$
(0.02
)
 
$
(0.08
)
 
$
(0.06
)
 
$
(0.15
)
Weighted average shares outstanding - basic and diluted
16,338,782

 
15,227,089

 
16,282,027

 
15,013,824

 



Exhibit 99.02

TECOGEN INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the six months ended June 30, 2015 and 2014
(unaudited)
 
June 30,
 
2015
 
2014
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
Consolidated net loss
$
(984,928
)
 
$
(2,358,596
)
Adjustments to reconcile net loss to net cash used in operating activities:
 
 
 
Depreciation and amortization
138,828

 
146,060

Change in provision for allowance on accounts receivable
—

 
18,000

Recovery for inventory reserve
23,000

 
—

Stock-based compensation
51,497

 
72,587

Non-cash interest expense
24,899

 
25,907

Gain on sale of assets
(5,073
)
 
—

Changes in operating assets and liabilities
 
 
 
(Increase) decrease in:
 
 
 
Short term investments
291,047

 
—

Accounts receivable
237,989

 
(695,280
)
Unbilled revenue
(896,001
)
 
294,237

Inventory, net
280,480

 
(543,483
)
Due from related party
(372,570
)
 
(148,830
)
Prepaid expenses and other current assets
(160,964
)
 
(113,725
)
Other non-current assets
(5,100
)
 
23,070

Increase (decrease) in:
 
 
 
Accounts payable
915,942

 
114,983

Accrued expenses
331,447

 
116,424

Deferred revenue
(712,759
)
 
449,717

Due to related party
—

 
(119,667
)
Interest payable, related party
—

 
(198,450
)
Net cash used in operating activities
(842,266
)
 
(2,917,046
)
CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
Purchases of property and equipment
(12,935
)
 
(120,773
)
Proceeds from sale of assets
16,874

 
—

Purchases of intangible assets
(95,086
)
 
(113,699
)
Purchases of short-term investments, restricted
—

 
(584,375
)
Net cash used in investing activities
(91,147
)
 
(818,847
)
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
Payments for debt issuance costs
—

 
(7,444
)
Proceeds (payments) on demand notes payable and line of credit to related party
—

 
(2,950,000
)
Proceeds from sale of restricted common stock, net
996,874

 
2,351,335

Proceeds from the exercise of stock options
360,225

 
6,000

Net cash provided by (used in) financing activities
1,357,099

 
(600,109
)
Net increase (decrease) in cash and cash equivalents
423,686

 
(4,336,002
)
Cash and cash equivalents, beginning of the period
1,186,033

 
7,713,899

Cash and cash equivalents, end of the period
$
1,609,719

 
$
3,377,897

Supplemental disclosures of cash flows information:
 

 
 

Cash paid for interest
$
60,410

 
$
263,553