EX-99.01 2 tgenq32024earningsrelease.htm EX-99.01 Document



















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Tecogen Announces
Third Quarter 2024 Results

NORTH BILLERICA, Mass., November 13, 2024 - Tecogen Inc. (OTCQX:TGEN), a leading manufacturer of clean energy products, reported revenues of $5.63 million and net loss of $0.93 million for the quarter ended September 30, 2024 compared to revenues of $7.11 million, and a net loss of $0.48 million in 2023. We used $117 thousand in cash from operations and $839 thousand in property plant and equipment during the nine months ended September 30, 2024. Our cash balance was $1.28 million at September 30, 2024, which reflects $1.0 million of additional funding provided by related parties in the three months ended September 30, 2024.
“Our business development efforts over the last 15 months are showing results. Our backlog has jumped to $10.8m and we expect further orders before year end. Our cash resources and the short term increase in working capital needed to restart production limited our revenue for Q3, but now we expect to see sequential increases in revenue and product shipments each quarter."

"We are also making progress towards closing our first data center projects by early 2025. Data centers are shifting towards AI and liquid cooling but are finding themselves short of power. Therefore potential data center customers are interested in replacing their electrical chillers with Tecogen's high efficiency natural gas chillers because they can convert an expense - electrical power that would be consumed by cooling - and turn it into revenue by selling that power for use in computing. I will discuss more about this exciting growth opportunity during the conference call" commented Abinand Rangesh, Tecogen's Chief Executive Officer.
Key Takeaways
Net Loss and Earnings Per Share
•Net loss for the three months ended September 30, 2024 was $0.93 million compared to a net loss of $0.48 million for the same period of 2023, an increase of $0.45 million, due to decreased revenue and gross profit for our Products segment due to the relocation of our manufacturing operations to our new facility in April 2024 and increased operating expenses. EPS for the three months ended September 30, 2024 and 2023 was a loss of $0.04/share and $0.02/share, respectively.
•Net loss for the nine months ended September 30, 2024 was $3.57 million compared to a net loss of $2.75 million in 2023, an increase of $0.82 million, due to decreased revenue and gross profit for our Products segment due to the relocation of our manufacturing operations to our new facility in April 2024 and increased operating expenses. EPS for the nine months ended September 30, 2024 and 2023 was a loss of $0.14/share and $0.11/share, respectively.

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Loss from Operations
•Loss from operations for the three months ended September 30, 2024 was $0.87 million compared to a loss from operations of 0.37 million for the same period in 2023, an increase of $0.50 million, due to decreased revenue and gross profit for our Products segment and increased operating expenses.
•Loss from operations for the nine months ended September 30, 2024 was $3.40 million compared to a loss from operations of $2.60 million for the same period in 2023, an increase of $0.80 million, due to decreased revenue and gross profit for our Products segment and increased operating expenses.
Revenues
•Revenues for the three months ended September 30, 2024 were $5.63 million compared to $7.11 million for the same period in 2023, a 20.8% decrease.
◦Products revenues in the three months ended September 30, 2024 were $1.39 million compared to $2.94 million for the same period in 2023, a decrease of 52.7%. The decrease in revenue during the three months ended September 30, 2024 is due to the relocation of our manufacturing operations to our new facility in April 2024, which necessitated construction activities to install equipment test cells and comply with local regulations, significantly reducing our production capacity. We resumed manufacturing operations during the third quarter of 2024.
◦Service revenues in the three months ended September 30, 2024 were $3.85 million, compared to $3.84 million for the same period in 2023, an increase of 0.2% due to increased revenue from the acquired Aegis maintenance contracts and offset by decreased revenues from existing contracts.
◦Energy Production revenues in the three months ended September 30, 2024 were $389 thousand compared to $331 thousand for the same period in 2023, an increase of 17.3%. The increase in Energy Production revenue is due to increased run hours at certain energy production sites.

•Revenues for the nine months ended September 30, 2024 were $16.54 million compared to $19.24 million for the same period in 2023, a decrease of 14.0% year over year.
◦Products revenues in the nine months ended September 30, 2024 were $3.00 million compared to $7.09 million for the same period in 2023, a decrease of 57.7%. The decrease in revenue during the nine months ended September 30, 2024 is due to the relocation of our manufacturing operations to our new facility in April 2024, which necessitated construction activities to install equipment test cells and comply with local regulations, significantly reducing our production capacity during the second and a portion of the the third quarter. We resumed manufacturing operations during the third quarter of 2024.
◦Service revenues in the nine months ended September 30, 2024 were $11.99 million compared to $10.93 million for the same period in 2023, an increase of 9.7%. The increase in revenue during the nine months ended September 30, 2024 is due to the addition of $0.72 million in revenue from the acquired Aegis maintenance contracts, and a $0.27 million increase in service contract revenues from existing contracts.
◦Energy Production revenues in the nine months ended September 30, 2024 were $1.55 million, compared to $1.21 million for the same period in 2023, an increase of 27.6%. The increase in Energy Production revenue is due to increased run hours at certain energy production sites.

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Gross Profit
•Gross profit for the three months ended September 30, 2024 was $2.48 million compared to $2.93 million in the same period in 2023. Gross margin increased to 44.1% in the three months ended September 30, 2024 compared to 41.1% for the same period in 2023. The increase in gross margin was driven by decreased Service contract labor and material costs.
•Gross profit for the nine months ended September 30, 2024 was $7.14 million compared to $7.85 million in the same period of 2023. Gross margin increased to 43.1% in the nine months ended September 30, 2024 compared to 40.8% for the same period in 2023. The increase in gross margin was driven by decreased Service contract labor and material costs.

Operating Expenses

•Operating expenses increased $60 thousand, or 1.8%, to $3.35 million in the three months ended September 30, 2024 compared to $3.29 million in the same period in 2023.
•Operating expenses increased $82 thousand, or 0.8%, to $10.53 million in the nine months ended September 30, 2024 compared to $10.45 million in the same period in 2023.

Adjusted EBITDA was negative $0.75 million for the three months ended September 30, 2024 compared to negative $0.18 million for the three months ended September 30, 2023. Adjusted EBITDA was negative $2.94 million for the nine months ended September 30, 2024 compared to negative $2.06 million for the nine months ended September 30, 2023. (Adjusted EBITDA is defined as net income or loss attributable to Tecogen, adjusted for interest, income taxes, depreciation and amortization, stock-based compensation expense, unrealized gain or loss on investment securities, goodwill impairment charges and other non-cash non-recurring charges or gains including abandonment of intangible assets. See the table following the Condensed Consolidated Statements of Operations for a reconciliation from net income (loss) to Adjusted EBITDA, as well as important disclosures about the company's use of Adjusted EBITDA).
Conference Call Scheduled for November 14, 2024, at 9:30 am ET
Tecogen will host a conference call on November 14, 2024 to discuss the third quarter results beginning at 9:30 am eastern time. To listen to the call please dial (877) 407-7186 within the U.S. and Canada, or +1 (201) 689-8052 from other international locations. Participants should ask to be joined to the Tecogen Third Quarter 2024 earnings call. Please begin dialing 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 earnings conference call will be webcast live. To view the associated slides, register for and listen to the webcast, go to https://ir.tecogen.com/ir-calendar. Following the call, the recording will be archived for 14 days.
The earnings conference call will be recorded and available for playback one hour after the end of the call. To listen to the playback, dial (877) 660-6853 within the U.S. and Canada, or (201) 612-7415 from other international locations and use Conference Call ID#: 13672659.
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About Tecogen
Tecogen Inc. designs, manufactures, sells, installs, and maintains high efficiency, ultra-clean, cogeneration products including engine-driven combined heat and power, air conditioning systems, and high-efficiency water heaters for residential, commercial, recreational and industrial use. The company provides cost effective, environmentally friendly and reliable products for energy production that nearly eliminate criteria pollutants and significantly reduce a customer’s carbon footprint.
In business for over 35 years, Tecogen has shipped more than 3,200 units, supported by an established network of engineering, sales, and service personnel in key markets in North America. For more information, please visit www.tecogen.com or contact us for a free Site Assessment.
Tecogen, InVerde e+, Tecochill, Tecopower, Tecofrost, Tecopack, and Ultera are registered trademarks of Tecogen Inc.
Forward Looking Statements

This press release and any accompanying documents, contain “forward-looking statements” which may describe strategies, goals, outlooks or other non-historical matters, or projected revenues, income, returns or other financial measures, that may include words such as "believe," "expect," "anticipate," "intend," "plan,"  "estimate," "project," "target," "potential," "will," "should," "could," "likely," or "may" and similar expressions intended to identify forward-looking statements. These statements are only predictions and involve known and unknown risks, uncertainties, and other factors that may cause our actual results to differ materially from those expressed or implied by such forward-looking statements. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Forward-looking statements speak only as of the date on which they are made, and we undertake no obligation to update or revise any forward-looking statements.

In addition to those factors described in our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q and on our Form 8-K, under “Risk Factors”, among the factors that could cause actual results to differ materially from past and projected future results are the following: fluctuations in demand for our products and services, competing technological developments, issues relating to research and development, the availability of incentives, rebates, and tax benefits relating to our products and services, changes in the regulatory environment relating to our products and services, integration of acquired business operations, and the ability to obtain financing on favorable terms to fund existing operations and anticipated growth.

In addition to GAAP financial measures, this press release includes certain non-GAAP financial measures, including adjusted EBITDA which excludes certain expenses as described in the presentation. We use Adjusted EBITDA as an internal measure of business operating performance and believe that the presentation of non-GAAP financial measures provides a meaningful perspective of the underlying operating performance of our current business and enables investors to better understand and evaluate our historical and prospective operating performance by eliminating items that vary from period to period without correlation to our core operating performance and highlights trends in our business that may not otherwise be apparent when relying solely on GAAP financial measures.
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Tecogen Media & Investor Relations Contact Information:

Abinand Rangesh
P: 781-466-6487
E: Abinand.Rangesh@tecogen.com

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TECOGEN INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
September 30, 2024December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents$1,282,238 $1,351,270 
Accounts receivable, net5,448,364 6,781,484 
Unbilled revenue1,139,532 1,258,532 
Inventories, net9,895,226 10,553,419 
Prepaid and other current assets403,218 360,639 
Total current assets18,168,578 20,305,344 
Long-term assets:
Property, plant and equipment, net1,699,398 1,162,577 
Right of use assets - operating leases1,839,031 743,096 
Right of use assets - finance leases438,123 200,187 
Intangible assets, net2,604,406 2,436,230 
Goodwill2,563,862 2,743,424 
Other assets166,889 201,771 
TOTAL ASSETS$27,480,287 $27,792,629 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Related party notes payable$1,530,228 $505,505 
Accounts payable4,838,395 4,514,415 
Accrued expenses2,638,228 2,504,629 
Deferred revenue, current1,378,652 1,647,206 
Operating lease obligations, current426,498 248,933 
Finance lease obligations, current84,814 40,540 
Acquisition liabilities, current811,732 845,363 
Unfavorable contract liability, current131,590 176,207 
Total current liabilities11,840,137 10,482,798 
Long-term liabilities:
Deferred revenue, net of current portion1,219,650 369,611 
Operating lease obligations, net of current portion1,452,924 523,660 
Finance lease obligations, net of current portion315,797 159,647 
Acquisition liabilities, net of current portion1,125,588 1,181,779 
Unfavorable contract liability, net of current portion332,987 422,839 
Total liabilities16,287,083 13,140,334 
Commitments and contingencies
Stockholders’ equity:
Tecogen Inc. shareholders’ equity:
Common stock, $0.001 par value; 100,000,000 shares authorized; 24,850,261 issued and outstanding at September 30, 2024 and December 31, 2023
24,850 24,850 
Additional paid-in capital57,733,308 57,601,402 
Accumulated deficit(46,453,827)(42,879,656)
Total Tecogen Inc. stockholders’ equity11,304,331 14,746,596 
Non-controlling interest(111,127)(94,301)
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY$27,480,287 $27,792,629 
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TECOGEN INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Three Months Ended
 September 30, 2024September 30, 2023
Revenues
Products$1,391,016 $2,938,789 
Services3,850,551 3,842,600 
Energy production388,563 331,141 
Total revenues5,630,130 7,112,530 
Cost of sales
Products797,209 1,669,747 
Services2,139,042 2,346,384 
Energy production212,965 170,378 
Total cost of sales3,149,216 4,186,509 
Gross profit2,480,914 2,926,021 
Operating expenses
General and administrative2,681,558 2,708,817 
Selling442,812 425,465 
Research and development233,809 160,033 
(Gain) loss on disposition of assets(4,042)— 
Total operating expenses3,354,137 3,294,315 
Loss from operations(873,223)(368,294)
Other income (expense)
Other income (expense), net(18,453)(16,330)
Interest expense(23,003)(6,357)
Unrealized gain (loss) on investment securities18,749 (56,246)
Total other income (expense), net(22,707)(78,933)
Loss before provision for state income taxes(895,930)(447,227)
Provision for state income taxes— — 
Consolidated net loss(895,930)(447,227)
Income attributable to the non-controlling interest(34,478)(34,346)
Loss attributable to Tecogen Inc.$(930,408)$(481,573)
Net loss per share - basic$(0.04)$(0.02)
Net loss per share - diluted$(0.04)$(0.02)
Weighted average shares outstanding - basic24,850,261 24,850,261 
Weighted average shares outstanding - diluted24,850,261 24,850,261 

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Three Months Ended
September 30, 2024September 30, 2023
Non-GAAP financial disclosure (1)
Net loss attributable to Tecogen Inc.$(930,408)$(481,573)
Interest expense, net23,003 6,357 
Depreciation & amortization, net138,246 168,684 
EBITDA(769,159)(306,532)
Stock based compensation41,908 68,775 
Unrealized (gain) loss on investment securities(18,749)56,246 
Adjusted EBITDA $(746,000)$(181,511)































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TECOGEN INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Nine Months Ended
September 30, 2024September 30, 2023
Revenues
Products$3,002,087 $7,094,556 
Services11,991,378 10,931,744 
     Energy production1,550,549 1,214,806 
Total revenues16,544,014 19,241,106 
Cost of sales
Products2,018,734 4,500,771 
Services6,423,114 6,159,855 
     Energy production966,440 728,124 
Total cost of sales9,408,288 11,388,750 
Gross profit7,135,726 7,852,356 
Operating expenses
General and administrative8,428,119 8,418,581 
Selling1,377,758 1,426,321 
Research and development734,994 625,691 
Gain on sale of assets(8,070)(19,950)
Total operating expenses10,532,801 10,450,643 
Loss from operations(3,397,075)(2,598,287)
Other income (expense)
Interest and other income (expense), net(15,305)(36,562)
Interest expense(59,542)(8,629)
Unrealized gain (loss) on investment securities— (18,749)
Total other income (expense), net(74,847)(63,940)
Loss before provision for state income taxes(3,471,922)(2,662,227)
Provision for state income taxes22,100 32,252 
Consolidated net loss(3,494,022)(2,694,479)
Income attributable to non-controlling interest(80,149)(57,232)
Net loss attributable to Tecogen Inc.$(3,574,171)$(2,751,711)
Net loss per share - basic $(0.14)$(0.11)
Net loss per share - diluted$(0.14)$(0.11)
Weighted average shares outstanding - basic24,850,261 24,850,261 
Weighted average shares outstanding - diluted24,850,261 24,850,261 





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Nine Months Ended
September 30, 2024September 30, 2023
Non-GAAP financial disclosure (1)
Net income loss attributable to Tecogen Inc.$(3,574,171)$(2,751,711)
Interest & other expense, net59,542 8,629 
Income taxes22,100 32,252 
Depreciation & amortization, net419,744 459,779 
EBITDA(3,072,785)(2,251,051)
Stock based compensation131,906 174,711 
Unrealized loss on marketable securities— 18,749 
Adjusted EBITDA $(2,940,879)$(2,057,591)

(1) Non-GAAP Financial Measures
In addition to reporting net income, a U.S. generally accepted accounting principle (“GAAP”) measure, this news release contains information about Adjusted EBITDA (net income (loss) attributable to Tecogen Inc adjusted for interest, income taxes, depreciation and amortization, stock-based compensation expense, unrealized gain or loss on investment securities, goodwill impairment charges and other non-cash non-recurring charges including abandonment of certain intangible assets), which is a non-GAAP measure.  The Company believes Adjusted EBITDA allows investors to view its performance in a manner similar to the methods used by management and provides additional insight into its operating results.  Adjusted EBITDA is not calculated through the application of GAAP.  Accordingly, it should not be considered as a substitute for the GAAP measure of net income and, therefore, should not be used in isolation of, but in conjunction with, the GAAP measure.  The use of any non-GAAP measure may produce results that vary from the GAAP measure and may not be comparable to a similarly defined non-GAAP measure used by other companies.
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TECOGEN INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
Nine Months Ended
September 30, 2024September 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Consolidated net loss$(3,494,022)$(2,694,479)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization419,744 459,779 
Provision for credit losses29,817 44,000 
Stock-based compensation131,906 174,711 
Unrealized (gain) loss on investment securities— 18,749 
Gain on disposition of assets(8,070)(19,950)
Non-cash interest expense25,966 — 
Changes in operating assets and liabilities
(Increase) decrease in:
Accounts receivable1,303,300 (1,324,448)
Employee retention credit— 667,121 
Unbilled revenue119,000 56,994 
Inventory658,194 (165,537)
Prepaid assets and other current assets(42,578)(19,128)
Other assets704,565 491,836 
Increase (decrease) in:
Accounts payable323,980 1,140,759 
Accrued expenses and other current liabilities133,599 256,847 
Deferred revenue 581,485 458,512 
Other liabilities(1,003,881)(566,016)
Net used in operating activities(116,995)(1,020,250)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment(838,932)(31,728)
Proceeds from disposition of assets40,255 16,863 
Payment for business acquisition— (170,000)
Distributions to non-controlling interest(96,975)(62,693)
Net cash used in investing activities(895,652)(247,558)
CASH FLOWS FROM FINANCING ACTIVITIES:
     Finance lease principal payments(56,385)— 
Proceeds from related party notes payable1,000,000 — 
Net cash provided by financing activities943,615 — 
Net decrease in cash and cash equivalents(69,032)(1,267,808)
Cash and cash equivalents, beginning of the period1,351,270 1,913,969 
Cash and cash equivalents, end of the period$1,282,238 $646,161 
Supplemental disclosure of cash flow information:
Cash paid for interest$22,909 $7,385 
Cash paid for taxes$22,100 $32,252 
Non-cash investing activities:
Aegis Contract and Related Asset Acquisition:
Accounts receivable credit$— $300,000 
Accounts payable assumed— 91,048 
Contingent consideration272,901 1,442,462 
Total$272,901 $1,833,510 
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