• | Cash flow provided by operations of $2.66 million compared to cash flows used by operations of $2.10 million for the same period in 2019 |
• | Cash and cash equivalents at the end of the second quarter 2020 of $2.86 million compared to $878 thousand at the end of 2019, an increase of 226% |
• | Operating expenses decreased by 9.4% to $3.4 million for the second quarter of 2020 compared to the same period of 2019 |
• | Product revenues grew 37% year over year |
• | Services revenues decreased 21% due to lower installation revenue as several larger construction projects close out and construction activity was curtailed due to COVID-19 |
• | Energy production revenues decreased 52% primarily due to COVID-19 related closures and other facility shutdowns |
• | Gross margin was 39% compared to 44% for the same period in 2019 |
• | Net loss for the three months ended June 30, 2020 was $654 thousand compared to $357 thousand for the same period in 2019, an increase of $297 thousand year over year |
• | Net loss per share was $0.03 for the second quarter of 2020 and $0.01 for the second quarter of 2019 |
• | Working capital increased by $575 thousand, a 4% increase since year-end 2019 |
• | Operating expenses decreased by 9.4% to $3.4 million for the second quarter of 2020 compared to the same period of 2019 |
• | Cash flow provided by operations was $2.66 million compared to cash flows used in operations of $2.10 million for the same period in 2019, primarily due to improved collections of accounts receivable |
• | Cash and cash equivalents at end of second quarter was $2.86 million (including proceeds from the PPP loan received on April 17, 2020) |
• | Terminated Credit Agreement with Webster Business Credit Corporation on May 11, 2020 |
• | Executed teaming agreement with Ainsworth, a Toronto-based company providing high quality technical trade services, highlighting Tecogen as its preferred CHP partner |
• | Released a white paper entitled "Building Electrification Policy and Combined Heat and Power Relevance" that provides an in-depth analysis of why electrification policy is generally counterproductive to its carbon reduction goals when compared to combined heat and power (CHP) |
• | Current sales backlog of equipment and installations as of August 11, 2020 is $13.1 million, comprised of $10.4 million of products and $2.7 million of installation services |
• | Planned work with MCFA (Mitsubishi Caterpillar Forklift America) delayed due to restrictions on travel between Japan and the United States |
June 30, 2020 | December 31, 2019 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 2,859,922 | $ | 877,676 | |||
Accounts receivable, net | 8,163,461 | 14,569,397 | |||||
Unbilled revenue | 4,883,779 | 5,421,811 | |||||
Inventory, net | 7,296,097 | 6,405,229 | |||||
Prepaid and other current assets | 641,415 | 635,034 | |||||
Total current assets | 23,844,674 | 27,909,147 | |||||
Property, plant and equipment, net | 3,167,604 | 3,465,948 | |||||
Right of use assets | 1,908,084 | 2,173,951 | |||||
Intangible assets, net | 1,475,794 | 1,593,781 | |||||
Goodwill | 5,281,867 | 5,281,867 | |||||
Other assets | 195,430 | 691,941 | |||||
TOTAL ASSETS | $ | 35,873,453 | $ | 41,116,635 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Revolving line of credit, bank | $ | — | $ | 2,402,384 | |||
Note payable, current portion | 208,939 | — | |||||
Accounts payable | 4,074,180 | 5,271,756 | |||||
Accrued expenses | 2,896,530 | 2,599,366 | |||||
Deferred revenue | 1,103,067 | 2,635,619 | |||||
Lease obligations, current | 523,784 | 536,443 | |||||
Total current liabilities | 8,806,500 | 13,445,568 | |||||
Long-term liabilities: | |||||||
Deferred revenue, net of current portion | 128,304 | 145,464 | |||||
Note payable, net of current portion | 1,665,261 | — | |||||
Lease obligations, long-term | 1,384,299 | 1,637,508 | |||||
Unfavorable contract liability, net | 2,315,140 | 2,534,818 | |||||
Total liabilities | 14,299,504 | 17,763,358 | |||||
Commitments and contingencies (Note 11) | |||||||
Stockholders’ equity: | |||||||
Tecogen Inc. stockholders’ equity: | |||||||
Common stock, $0.001 par value; 100,000,000 shares authorized; 24,850,261 and 24,849,261 issued and outstanding at June 30, 2020 and December 31, 2019, respectively | 24,850 | 24,849 | |||||
Additional paid-in capital | 56,704,412 | 56,622,285 | |||||
Accumulated deficit | (35,235,389 | ) | (33,379,114 | ) | |||
Total Tecogen Inc. stockholders’ equity | 21,493,873 | 23,268,020 | |||||
Noncontrolling interest | 80,076 | 85,257 | |||||
Total stockholders’ equity | 21,573,949 | 23,353,277 | |||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 35,873,453 | $ | 41,116,635 |
Three Months Ended | |||||||
June 30, 2020 | June 30, 2019 | ||||||
Revenues | |||||||
Products | $ | 3,342,794 | $ | 2,445,448 | |||
Services | 3,815,923 | 4,843,649 | |||||
Energy production | 276,341 | 578,299 | |||||
Total revenues | 7,435,058 | 7,867,396 | |||||
Cost of sales | |||||||
Products | 2,037,786 | 1,546,752 | |||||
Services | 2,285,405 | 2,530,175 | |||||
Energy production | 205,876 | 364,554 | |||||
Total cost of sales | 4,529,067 | 4,441,481 | |||||
Gross profit | 2,905,991 | 3,425,915 | |||||
Operating expenses | |||||||
General and administrative | 2,637,479 | 2,683,252 | |||||
Selling | 602,383 | 704,700 | |||||
Research and development | 166,027 | 372,545 | |||||
Total operating expenses | 3,405,889 | 3,760,497 | |||||
Loss from operations | (499,898 | ) | (334,582 | ) | |||
Other income (expense) | |||||||
Interest income | 238 | 66 | |||||
Interest expense | (56,253 | ) | (17,005 | ) | |||
Unrealized gain (loss) on investment securities | (78,723 | ) | 19,681 | ||||
Total other income (expense), net | (134,738 | ) | 2,742 | ||||
Loss before provision for state income taxes | (634,636 | ) | (331,840 | ) | |||
Provision for state income taxes | 13,171 | 15,955 | |||||
Consolidated net loss | (647,807 | ) | (347,795 | ) | |||
Income attributable to the noncontrolling interest | (6,081 | ) | (9,334 | ) | |||
Net loss attributable to Tecogen Inc. | $ | (653,888 | ) | $ | (357,129 | ) | |
Net loss per share - basic and diluted | $ | (0.03 | ) | $ | (0.01 | ) | |
Weighted average shares outstanding - basic and diluted | 24,850,261 | 24,826,311 |
Non-GAAP financial disclosure (1) | |||||||
Net loss attributable to Tecogen Inc. | $ | (653,888 | ) | $ | (357,129 | ) | |
Interest expense, net | 56,015 | 16,939 | |||||
Income taxes | 13,171 | 15,955 | |||||
Depreciation & amortization, net | 103,485 | 98,988 | |||||
EBITDA | (481,217 | ) | (225,247 | ) | |||
Stock based compensation | 39,494 | 39,898 | |||||
Unrealized (gain) loss on investment securities | 78,723 | (19,681 | ) | ||||
Adjusted EBITDA | $ | (363,000 | ) | $ | (205,030 | ) |
Six Months Ended | |||||||
June 30, 2020 | June 30, 2019 | ||||||
Revenues | |||||||
Products | $ | 6,093,273 | $ | 5,469,974 | |||
Services | 8,277,294 | 8,754,945 | |||||
Energy production | 1,027,191 | 1,819,108 | |||||
Total revenues | 15,397,758 | 16,044,027 | |||||
Cost of sales | |||||||
Products | 3,705,250 | 3,490,214 | |||||
Services | 5,304,070 | 5,004,708 | |||||
Energy production | 690,280 | 1,164,431 | |||||
Total cost of sales | 9,699,600 | 9,659,353 | |||||
Gross profit | 5,698,158 | 6,384,674 | |||||
Operating expenses | |||||||
General and administrative | 5,326,941 | 5,338,663 | |||||
Selling | 1,458,170 | 1,397,954 | |||||
Research and development | 530,363 | 717,627 | |||||
Gain on sale of assets | — | (1,081,049 | ) | ||||
Goodwill impairment | — | 3,693,198 | |||||
Total operating expenses | 7,315,474 | 10,066,393 | |||||
Loss from operations | (1,617,316 | ) | (3,681,719 | ) | |||
Other income (expense) | |||||||
Interest income | 11,965 | 598 | |||||
Interest expense | (116,238 | ) | (45,031 | ) | |||
Unrealized loss on investment securities | (98,404 | ) | (19,680 | ) | |||
Total other expense, net | (202,677 | ) | (64,113 | ) | |||
Loss before provision for state income taxes | (1,819,993 | ) | (3,745,832 | ) | |||
Provision for state income taxes | 18,393 | 7,786 | |||||
Consolidated net loss | (1,838,386 | ) | (3,753,618 | ) | |||
(Income) loss attributable to the noncontrolling interest | (17,889 | ) | 116,412 | ||||
Net loss attributable to Tecogen Inc. | $ | (1,856,275 | ) | (3,637,206 | ) | ||
Net loss per share - basic and diluted | $ | (0.07 | ) | $ | (0.15 | ) | |
Weighted average shares outstanding - basic and diluted | 24,850,256 | 24,822,555 |
Non-GAAP financial disclosure (1) | |||||||
Net loss attributable to Tecogen Inc. | $ | (1,856,275 | ) | $ | (3,637,206 | ) | |
Interest & other expense, net | 104,273 | 44,433 | |||||
Income taxes | 18,393 | 7,786 | |||||
Depreciation & amortization, net | 193,637 | 267,232 | |||||
EBITDA | (1,539,972 | ) | (3,317,755 | ) | |||
Stock based compensation | 81,730 | 77,933 | |||||
Unrealized loss on marketable securities | 98,404 | 19,680 | |||||
Non-cash abandonment of intangible assets | 179,944 | — | |||||
Goodwill impairment | — | 3,693,198 | |||||
Adjusted EBITDA | $ | (1,179,894 | ) | $ | 473,056 |
Six Months Ended | |||||||
June 30, 2020 | June 30, 2019 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Consolidated net loss | $ | (1,838,386 | ) | $ | (3,753,618 | ) | |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||||||
Depreciation, accretion and amortization, net | 193,637 | 267,232 | |||||
Stock-based compensation | 81,730 | 77,933 | |||||
Goodwill impairment | — | 3,693,198 | |||||
Gain on sale of assets | — | (1,081,049 | ) | ||||
Provision for losses on accounts receivable | — | 29,849 | |||||
Abandonment of intangible assets | 179,944 | — | |||||
Non-cash interest expense | 50,775 | 12,087 | |||||
Changes in operating assets and liabilities, net of effects of acquisitions | |||||||
(Increase) decrease in: | |||||||
Accounts receivable | 6,405,936 | 2,517,901 | |||||
Unbilled revenue | 538,032 | (936,106 | ) | ||||
Inventory | (890,868 | ) | (695,835 | ) | |||
Due from related party | — | 9,405 | |||||
Prepaid expenses and other current assets | (6,382 | ) | (15,282 | ) | |||
Other non-current assets | 532,293 | 40,003 | |||||
Increase (decrease) in: | |||||||
Accounts payable | (1,197,576 | ) | (918,484 | ) | |||
Accrued expenses and other current liabilities | 284,506 | (380,351 | ) | ||||
Deferred revenue | (1,671,239 | ) | (966,776 | ) | |||
Net cash provided by (used in) operating activities | 2,662,402 | (2,099,893 | ) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Purchases of property and equipment | (53,674 | ) | (52,444 | ) | |||
Proceeds from sale of assets | — | 5,000,000 | |||||
Purchases of intangible assets | (123,254 | ) | (22,738 | ) | |||
Unrealized loss on investment securities | 98,403 | 19,680 | |||||
Payment of stock issuance costs | (802 | ) | (1,011 | ) | |||
Distributions to noncontrolling interest | (23,070 | ) | (27,413 | ) | |||
Net cash provided by (used in) investing activities | (102,397 | ) | 4,916,074 | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Proceeds (payments) on revolving line of credit, net | (2,453,159 | ) | (2,021,519 | ) | |||
Proceeds from note payable | 1,874,200 | — | |||||
Proceeds from the exercise of stock options | 1,200 | 20,756 | |||||
Net cash used in financing activities | (577,759 | ) | (2,000,763 | ) | |||
Change in cash and cash equivalents | 1,982,246 | 815,418 | |||||
Cash and cash equivalents, beginning of the period | 877,676 | 272,552 | |||||
Cash and cash equivalents, end of the period | $ | 2,859,922 | $ | 1,087,970 | |||
Supplemental disclosures of cash flows information: | |||||||
Cash paid for interest | $ | 36,326 | $ | 23,551 | |||
Cash paid for taxes | $ | 5,222 | $ | 28,524 |