Ilios Earned Net Profit in Second Quarter
WALTHAM, Mass., August 6, 2015, Ilios Dynamics Inc., a majority owned subsidiary of Tecogen® Inc. (NASDAQ:TGEN), a manufacturer and installer of high efficiency water heaters and natural gas heat pump for industrial and commercial use, reported revenues of $889,894 for the six months ended June 30, 2015. Although the six months results show a loss, Ilios was profitable in the second quarter with a net income of $88,226.
Major Highlights:
Financial
| |
| ◦ | During the second quarter, Ilios had its first positive quarterly net income. |
| |
| ◦ | Previously announced review and analysis of acquisition of remaining non-controlling interest by Tecogen has begun. |
Sales & Operations
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| ◦ | Nine gas heat pumps were shipped in the quarter, the highest single quarterly shipment total since the Company's establishment. |
| |
| ◦ | Current 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. |
About Ilios
Ilios Dynamics Inc., a subsidiary of Tecogen Inc., was formed in April 2009 to develop and distribute a line of ultra high-efficiency heating products for commercial and industrial applications utilizing advanced thermodynamic principles. Products incorporate mechanical work to extract heat from the environment to supplement chemical energy available from natural gas or propane. The result is a significant boost in efficiency and reduced carbon emissions relative to conventional heating systems. Please visit www.iliosdynamics.com.
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 2,000 units, supported by an established network of engineering, sales, and service personnel across the United States. For more information, please visit www.tecogen.com.
Unaudited Historic Financial Information
ILIOS DYNAMICS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
As of December 31, 2012, 2013, 2014 and June 30, 2015
(unaudited)
|
| | | | | | | | | | | | | |
| | June 30, | | December 31, |
| | 2015 | | 2014 | 2013 | 2012 |
| ASSETS | | | | | |
| Current assets: | |
| | | | |
|
| Cash and cash equivalents | $ | 129,894 |
| | $ | 274,671 |
| $ | 52,050 |
| $ | 518,457 |
|
| Accounts receivable, net | 532,416 |
| | 267,680 |
| — |
| — |
|
| Inventory, net | 70,254 |
| | 220,254 |
| 130,000 |
| — |
|
| Prepaid and other current assets | 6,500 |
| | 6,220 |
| 6,340 |
| — |
|
| Total current assets | 739,064 |
| | 768,825 |
| 188,390 |
| 518,457 |
|
| Property, plant and equipment, net | 4,302 |
| | 5,930 |
| 22,648 |
| 80,115 |
|
| Intangible assets, net | 74,811 |
| | 76,747 |
| 61,153 |
| 17,315 |
|
| TOTAL ASSETS | $ | 818,177 |
| | $ | 851,502 |
| $ | 272,191 |
| $ | 615,887 |
|
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |
| | | | |
|
| Current liabilities: | |
| | | | |
|
| Accounts payable | $ | 1,668,266 |
| | $ | 1,666,138 |
| $ | 840,255 |
| $ | 134,676 |
|
| Deferred revenue | 93,000 |
| | 24,000 |
| 15,000 |
| — |
|
| Customer Deposits | 61,430 |
| | 158,917 |
| — |
| — |
|
| Total current liabilities | 1,822,696 |
| | 1,849,055 |
| 855,255 |
| 134,676 |
|
| | | | | | |
| Stockholders’ equity: | |
| | | | |
|
| Common stock, $0.001 par value | 14,920 |
| | 14,920 |
| 14,920 |
| 15,120 |
|
| Additional paid-in capital | 3,199,213 |
| | 3,192,957 |
| 3,183,159 |
| 3,224,470 |
|
| Accumulated deficit | (4,218,652 | ) | | (4,205,430 | ) | (3,781,143 | ) | (2,758,379 | ) |
| Total stockholders’ equity | (1,004,519 | ) | | (997,553 | ) | (583,064 | ) | 481,211 |
|
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 818,177 |
| | $ | 851,502 |
| $ | 272,191 |
| $ | 615,887 |
|
ILIOS DYNAMICS INC.
STATEMENTS OF OPERATIONS
For the years ended December 31, 2012, 2013 and 2014, and six months ended June 30, 2015
(unaudited)
|
| | | | | | | | | | | |
| | First six months of | | | | | | |
| | 2015 | | 2014 | | 2013 | | 2012 |
| Revenues | 889,894 |
| | 461,395 |
| | 259,335 |
| | 35,000 |
|
| Cost of goods sold | 618,319 |
| | 367,710 |
| | 437,361 |
| | 32,620 |
|
| Gross profit | 271,575 |
| | 93,685 |
| | (178,026 | ) |
| 2,380 |
|
| Operating expenses | |
| | |
| | | | |
| General and administrative | 234,450 |
| | 415,029 |
| | 737,805 |
|
| 1,007,042 |
|
| Selling | 8,386 |
| | 36,632 |
| | 85,035 |
| | 35,265 |
|
| Total operating expenses | 242,836 |
| | 451,661 |
| | 822,840 |
|
| 1,042,307 |
|
| Loss from operations | 28,739 |
| | (357,976 | ) | | (1,000,866 | ) |
| (1,039,927 | ) |
| Other income (expense) | (41,962 | ) | | (66,311 | ) | | (21,898 | ) | | 2,593 |
|
| Consolidated net loss | (13,223 | ) | | (424,287 | ) | | (1,022,764 | ) |
| (1,037,334 | ) |
ILIOS DYNAMICS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the six months ended June 30, 2015 and year ended December 31, 2014 and 2013.
(unaudited)
|
| | | | | | | | | | | |
| | June 30, | | December 31, | | December 31, |
| | 2015 | | 2014 | | 2013 |
| CASH FLOWS FROM OPERATING ACTIVITIES: | | | | | |
| Net loss | $ | (13,222 | ) | | $ | (424,287 | ) | | $ | (1,022,764 | ) |
| Adjustments to reconcile net loss to net cash used in operating activities: | | | | | |
| Depreciation and amortization | 10,615 |
| | 27,837 |
| | 62,754 |
|
| Stock-based compensation | 6,256 |
| | 9,798 |
| | (41,511 | ) |
| Changes in operating assets and liabilities | | | | | |
| (Increase) decrease in: | | | | | |
| Accounts receivable | (264,736 | ) | | (267,680 | ) | | — |
|
| Inventory, net | 150,000 |
| | (90,254 | ) | | (130,000 | ) |
| Prepaid expenses and other current assets | (280 | ) | | 120 |
| | (6,340 | ) |
| Increase (decrease) in: | | | | | |
| Accounts payable | 2,128 |
| | 825,883 |
| | 705,579 |
|
| Accrued expenses | (97,487 | ) | | 158,917 |
| | — |
|
| Deferred revenue | 69,000 |
| | 9,000 |
| | 15,000 |
|
| Net cash used in operating activities | (137,726 | ) | | 249,334 |
| | (417,282 | ) |
| CASH FLOWS FROM INVESTING ACTIVITIES: | | | | | |
| Purchases of property and equipment | — |
| | (2,713 | ) | | (1,000 | ) |
| Purchases of intangible assets | (7,051 | ) | | (24,000 | ) | | (48,125 | ) |
| Net cash used in investing activities | (7,051 | ) | | (26,713 | ) | | (49,125 | ) |
| Net increase (decrease) in cash and cash equivalents | (144,777 | ) | | 222,621 |
| | (466,407 | ) |
| Cash and cash equivalents, beginning of the period | 274,671 |
| | 52,050 |
| | 518,457 |
|
| Cash and cash equivalents, end of the period | $ | 129,894 |
| | $ | 274,671 |
| | $ | 52,050 |
|
