Tecogen Inc. | Dispositions of | Pro Forma | ||||||||||||||||
Historical | Assets | Adjustments | Notes | Pro Forma | ||||||||||||||
Cash and cash equivalents | $ | 136,717 | $ | — | $ | 7,000,000 | (a) | $ | 7,136,717 | |||||||||
Accounts receivable, net | 11,548,663 | — | — | 11,548,663 | ||||||||||||||
Unbilled revenue | 4,441,565 | — | — | 4,441,565 | ||||||||||||||
Inventory, net | 5,983,067 | — | — | 5,983,067 | ||||||||||||||
Prepaid and other currents assets | 815,269 | — | — | 815,269 | ||||||||||||||
Total current assets | 22,925,281 | — | 7,000,000 | 29,925,281 | ||||||||||||||
Property, plant and equipment, net | 11,107,509 | (6,825,539 | ) | — | (b) | 4,281,970 | ||||||||||||
Intangible assets, net | 2,935,279 | (1,341,584 | ) | — | (b) | 1,593,695 | ||||||||||||
Goodwill | 13,365,655 | — | — | 13,365,655 | ||||||||||||||
Other assets | 427,810 | — | — | 427,810 | ||||||||||||||
Total assets | $ | 50,761,534 | $ | (8,167,123 | ) | $ | 7,000,000 | $ | 49,594,411 | |||||||||
Revolving line of credit, bank | $ | 1,708,888 | $ | — | $ | — | $ | 1,708,888 | ||||||||||
Accounts payable | 5,716,426 | — | — | 5,716,426 | ||||||||||||||
Accrued expenses | 2,196,921 | — | 591,000 | (c) | 2,787,921 | |||||||||||||
Deferred revenue | 1,718,376 | — | — | 1,718,376 | ||||||||||||||
Total current liabilities | 11,340,611 | — | — | 11,931,611 | ||||||||||||||
Deferred revenue, net of current portion | 343,031 | — | — | 343,031 | ||||||||||||||
Unfavorable contract liability, net | 6,534,074 | (3,372,337 | ) | — | (b) | 3,161,737 | ||||||||||||
Total liabilities | 18,217,716 | (3,372,337 | ) | — | 15,436,379 | |||||||||||||
Common stock | 24,819 | — | — | 24,819 | ||||||||||||||
Additional paid-in capital | 56,371,583 | — | — | 56,371,583 | ||||||||||||||
Accumulated deficit | (24,298,191 | ) | — | 1,614,214 | (d) | (22,683,977 | ) | |||||||||||
Total Tecogen Inc. stockholders’ equity | 32,098,211 | — | 1,614,214 | 33,712,425 | ||||||||||||||
Noncontrolling interest | 445,607 | — | — | 445,607 | ||||||||||||||
Total stockholders' equity | 32,543,818 | — | 1,614,214 | 34,158,032 | ||||||||||||||
Total liabilities and stockholders' equity | $ | 50,761,534 | $ | (3,372,337 | ) | $ | 1,614,214 | $ | 49,594,411 |
Tecogen Inc. | Dispositions of | |||||||||||
Historical | Assets | Pro Forma | ||||||||||
Net sales and gross revenues | $ | 26,567,276 | $ | (2,037,868 | ) | $ | 24,529,408 | |||||
Cost and expenses applicable to sales and revenues | 16,686,781 | (1,387,453 | ) | 15,299,328 | ||||||||
Gross profit | 9,880,495 | (650,415 | ) | 9,230,080 | ||||||||
Selling, general and administrative expenses | 10,015,085 | — | 10,015,085 | |||||||||
Research and development | 993,102 | — | 993,102 | |||||||||
Loss from operations | (1,127,692 | ) | (650,415 | ) | (1,778,107 | ) | ||||||
Interest and other income | 7,926 | — | 7,926 | |||||||||
Interest expense | (56,195 | ) | — | (56,195 | ) | |||||||
Unrealized loss on investment securities | (59,042 | ) | — | (59,042 | ) | |||||||
Loss from continuing operations before income taxes | (1,235,003 | ) | (650,415 | ) | (1,885,418 | ) | ||||||
Provision for income taxes on continuing operations | 42,679 | — | 42,679 | |||||||||
Net loss from continuing operations | (1,277,682 | ) | (650,415 | ) | (1,928,097 | ) | ||||||
Income attributable to the noncontrolling interest | (58,946 | ) | — | (58,946 | ) | |||||||
Net loss attributable Tecogen Inc. shareholders | $ | (1,336,628 | ) | $ | (650,415 | ) | $ | (1,987,043 | ) | |||
Per common share data: | ||||||||||||
Net loss per share - basic and diluted | $ | (0.05 | ) | $ | (0.08 | ) | ||||||
Weighted average shares outstanding - basic and diluted | 24,813,936 | 24,813,936 |
Tecogen Inc. | Dispositions of | |||||||||||
Historical | Assets | Pro Forma | ||||||||||
Net sales and gross revenues | $ | 33,202,666 | $ | (1,707,016 | ) | $ | 31,495,650 | |||||
Cost and expenses applicable to sales and revenues | 20,248,262 | (1,094,566 | ) | 19,153,696 | ||||||||
Gross profit | 12,954,404 | (612,450 | ) | 12,341,954 | ||||||||
Selling, general and administrative expenses | 11,792,323 | — | 11,792,323 | |||||||||
Research and development | 936,929 | — | 936,929 | |||||||||
Income (loss) from operations | 225,152 | (612,450 | ) | (387,298 | ) | |||||||
Interest and other income | 27,626 | — | 27,626 | |||||||||
Interest expense | (155,082 | ) | — | (155,082 | ) | |||||||
Income (loss) from continuing operations before income taxes | 97,696 | (612,450 | ) | (514,754 | ) | |||||||
Provision for income taxes on continuing operations | — | — | — | |||||||||
Net income (loss) from continuing operations | 97,696 | (612,450 | ) | (514,754 | ) | |||||||
Income attributable to the noncontrolling interest | (50,260 | ) | — | (50,260 | ) | |||||||
Net income (loss) attributable Tecogen Inc. shareholders | $ | 47,436 | $ | (612,450 | ) | $ | (565,014 | ) | ||||
Per common share data: | ||||||||||||
Net income (loss) per share - basic | $ | — | $ | (0.02 | ) | |||||||
Net income (loss) per share - diluted | $ | — | $ | (0.02 | ) | |||||||
Weighted average shares outstanding - basic | 23,171,033 | 23,171,033 | ||||||||||
Weighted average shares outstanding - diluted | 23,342,627 | 23,171,033 |
(a) | Adjustment to reflect the receipt of cash consideration of $2.0 and $5.0 million, respectively, from the sales of the Company’s interests in two and six agreements, respectively, and associated assets (collectively “the assets”) relating to the generation and sale of energy to an unrelated third party. |
(b) | Adjustment to derecognize the carrying value of the assets sold. |
(c) | Adjustment to recognize liability for costs related to assets sold which were incurred subsequent to September 30, 2018. |
(d) | Adjustment for estimated gain on the sales. The amount of the actual gain will be calculated based on the carrying value of the assets as of the closing of the transactions and therefore differ from the estimate which employs the carrying values as of September 30, 2018. |