Nature of business and operations |
12 Months Ended |
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Dec. 31, 2024 | |
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
| Nature of business and operations | Nature of Business and Operations Tecogen Inc. (together with its subsidiaries "we", "our", "us", "Tecogen", or "Company"), a Delaware Corporation, was incorporated on September 15, 2000, and acquired the assets and liabilities of the Tecogen Products division of Thermo Power Corporation. We produce commercial and industrial, natural-gas-fueled engine-driven, combined heat and power (CHP) products that reduce energy costs, decrease greenhouse gas emissions and alleviate congestion on the national power grid. Our products supply electric power or mechanical power for cooling, while heat from the engine is recovered and purposefully used at a facility. The majority of our customers are located in regions with the highest utility rates, typically California, the Midwest and the Northeast.
Our operations are comprised of three business segments. Our Products segment designs, manufactures and sells industrial and commercial cogeneration systems as described above. Our Services segment provides operation and maintenance services to customers for our products. Our Energy Production segment sells energy in the form of electricity, heat, hot water and cooling to our customers under long-term sales agreements.
Liquidity, Going Concern and Management's Plans
The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting
principles assuming that we will continue as a going concern, which contemplates the realization of assets and the settlement of obligations in the normal course of business. As of December 31, 2024, our cash and cash equivalents were $5,405,233, compared to $1,351,270 at December 31, 2023, an increase of $4,053,963. For the year ended December 31, 2024 we generated $4,060,547 in cash from operations and incurred net operating losses of $4,534,087, due to lower Products sales and lower gross margin. Working capital at December 31, 2024 was $5,329,650, compared to $9,822,546 at December 31, 2023, a decrease of $4,492,896 and our accumulated deficit was $47,639,894. As a result of the above factors, management has performed an analysis to evaluate the entity’s ability to continue as a going concern for one year after the financial statements issuance date. Management’s analysis includes forecasting future revenues, expenditures and cash flows, taking into consideration past performance as well as key initiatives recently undertaken. Our forecasts are dependent on our ability to maintain margins based on the Company's ability to close on new and expanded business, leverage existing working capital, and effectively manage expenses. New and expanded business includes the sale and shipment of newly developed hybrid-drive air-cooled chillers, increased services revenue due to the acquisition of additional maintenance contracts in February 2024 and April 2024, and the anticipated expansion of markets served by our chiller products into the data center market, which is currently experiencing power constraints. Our backlog at December 31, 2024 was $12,336,248, which is an increase of $4,948,103 from the December 31, 2023 backlog. Based on management's analysis, we believe that cash flows from operations will be sufficient to fund operations over the next twelve months.
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