Document and Entity Information
Document and Entity Information Document and Entity Information | 9 Months Ended |
Sep. 30, 2015shares | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | TECOGEN INC. |
Entity Central Index Key | 1,537,435 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Smaller Reporting Company |
Document Type | 10-Q |
Document Period End Date | Sep. 30, 2015 |
Document Fiscal Year Focus | 2,015 |
Document Fiscal Period Focus | Q3 |
Amendment Flag | false |
Entity Common Stock, Shares Outstanding | 17,588,782 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2015 | Dec. 31, 2014 | |
Statement of Financial Position [Abstract] | |||
Depreciation | $ 42,366 | $ 129,775 | |
Inventory Valuation Reserves | 275,000 | 275,000 | $ 300,000 |
Current assets: | |||
Cash and cash equivalents | 3,970,011 | 3,970,011 | 1,186,033 |
Short-term investments, restricted | 294,728 | 294,728 | 585,702 |
Accounts receivable, net | 4,331,181 | 4,331,181 | 4,750,437 |
Unbilled revenue | 1,801,055 | 1,801,055 | 696,912 |
Inventory, net | 4,699,913 | 4,699,913 | 4,090,221 |
Due from related party | 949,129 | 949,129 | 600,251 |
Deferred financing costs, current portion | 50,201 | 50,201 | 50,201 |
Prepaid and other current assets | 354,859 | 354,859 | 348,868 |
Total current assets | 16,451,077 | 16,451,077 | 12,308,625 |
Property, plant and equipment, net | 565,230 | 565,230 | 658,421 |
Intangible assets, net | 1,046,316 | 1,046,316 | 1,011,300 |
Goodwill | 40,870 | 40,870 | 40,870 |
Deferred financing costs, net of current portion | 11,439 | 11,439 | 48,990 |
Other assets | 58,425 | 58,425 | 53,325 |
TOTAL ASSETS | 18,173,357 | 18,173,357 | 14,121,531 |
Current liabilities: | |||
Accounts payable | 2,841,858 | 2,841,858 | 2,416,313 |
Accrued expenses | 1,138,914 | 1,138,914 | 1,008,153 |
Deferred revenue | 556,145 | 556,145 | 1,666,576 |
Total current liabilities | 4,536,917 | 4,536,917 | 5,091,042 |
Long-term liabilities: | |||
Deferred revenue, net of current portion | 415,712 | 415,712 | 207,153 |
Senior convertible promissory note, related party | 3,000,000 | 3,000,000 | 3,000,000 |
Total liabilities | $ 7,952,629 | $ 7,952,629 | $ 8,298,195 |
Commitments and contingencies | |||
Tecogen Inc. shareholders’ equity: | |||
Common stock, $0.001 par value; 100,000,000 shares authorized; 17,588,782 and 15,905,881 issued and outstanding at September 30, 2015 and December 31, 2014, respectively | $ 17,589 | $ 17,589 | $ 15,906 |
Additional paid-in capital | 31,455,719 | 31,455,719 | 25,088,213 |
Accumulated deficit | (20,884,168) | (20,884,168) | (18,955,023) |
Total Tecogen Inc. stockholders’ equity | 10,589,140 | 10,589,140 | 6,149,096 |
Noncontrolling interest | (368,412) | (368,412) | (325,760) |
Total stockholders’ equity | 10,220,728 | 10,220,728 | 5,823,336 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 18,173,357 | $ 18,173,357 | $ 14,121,531 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2014 | Mar. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 15,905,881 | 17,588,782 |
Common stock, shares outstanding | 15,905,881 | 17,588,782 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenues | ||||
Products | $ 1,860,860 | $ 1,094,529 | $ 8,744,306 | $ 5,047,231 |
Services | 2,815,182 | 3,081,334 | 8,419,001 | 7,884,246 |
Total revenues | 4,676,042 | 4,175,863 | 17,163,307 | 12,931,477 |
Cost of sales | ||||
Products | 1,262,480 | 1,052,199 | 6,040,533 | 4,043,783 |
Services | 1,744,631 | 2,034,193 | 5,087,978 | 5,023,324 |
Total cost of sales | 3,007,111 | 3,086,392 | 11,128,511 | 9,067,107 |
Gross profit | 1,668,931 | 1,089,471 | 6,034,796 | 3,864,370 |
Operating expenses | ||||
General and administrative | 1,864,529 | 1,738,429 | 5,942,161 | 5,387,098 |
Selling | 521,924 | 476,601 | 1,339,982 | 1,303,329 |
Research and development | 206,223 | 329,524 | 610,703 | 889,240 |
Total operating expenses | 2,592,676 | 2,544,554 | 7,892,846 | 7,579,667 |
Loss from operations | (923,745) | (1,455,083) | (1,858,050) | (3,715,297) |
Other income (expense) | ||||
Interest and other income | 2,157 | 17,763 | 11,945 | 35,927 |
Interest expense | (68,216) | (43,317) | (128,626) | (159,863) |
Total other expense, net | (66,059) | (25,554) | (116,681) | (123,936) |
Loss before income taxes | (989,804) | (1,480,637) | (1,974,731) | (3,839,233) |
Consolidated net loss | (989,804) | (1,480,637) | (1,974,731) | (3,839,233) |
Less: (Income) loss attributable to the noncontrolling interest | 40,962 | 32,839 | 45,587 | 123,683 |
Net loss attributable to Tecogen Inc. | $ (948,842) | $ (1,447,798) | $ (1,929,144) | $ (3,715,550) |
Net loss per share - basic and diluted | $ (0.06) | $ (0.09) | $ (0.12) | $ (0.25) |
Weighted average shares outstanding - basic and diluted | 17,153,999 | 15,447,726 | 16,575,879 | 15,160,041 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows - USD ($) | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss attributable to Tecogen Inc. | $ (1,974,731) | $ (3,839,233) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 205,262 | 250,655 |
Change in provision for allowance on accounts receivable | 0 | 18,000 |
Provision for inventory reserve | (25,000) | 0 |
Stock-based compensation | 90,971 | 120,972 |
Non-cash interest expense | (37,550) | 0 |
Gain on sale of assets | (4,631) | 0 |
Changes in operating assets and liabilities | ||
Short term investments | 290,974 | 0 |
Accounts receivable | 419,256 | (796,659) |
Unbilled revenue | (1,104,143) | 521,327 |
Inventory, net | (584,692) | (1,563,642) |
Due from related party | (348,878) | (125,069) |
Prepaid expenses and other current assets | (5,991) | 1,756 |
Other non-current assets | (5,100) | 19,100 |
Increase (decrease) in: | ||
Accounts payable | 425,545 | 747,810 |
Accrued expenses | 130,761 | (149,470) |
Deferred revenue | 0 | (198,450) |
Due to related party | (901,872) | 1,315,434 |
Interest payable, related party | 0 | (119,667) |
Net cash used in operating activities | (3,354,719) | (3,797,136) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property and equipment | (48,827) | (148,833) |
Proceeds from sale of assets | $ 16,874 | 0 |
Disposal of property and equipment | 7,569 | |
Purchases of intangible assets | $ (110,502) | (130,905) |
Purchases of short-term investments, restricted | 0 | (585,038) |
Net cash used in investing activities | (142,455) | (857,207) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Payments for debt issuance costs | 0 | (9,668) |
Proceeds (payments) on demand notes payable and line of credit to related party | 0 | 2,950,000 |
Proceeds from sale of restricted common stock, net | 5,920,927 | 2,340,194 |
Proceeds from the exercise of stock options | 360,225 | 6,000 |
Net cash provided by (used in) financing activities | 6,281,152 | (613,474) |
Net increase (decrease) in cash and cash equivalents | 2,783,978 | (5,267,817) |
Cash and cash equivalents, beginning of the period | 1,186,033 | |
Cash and cash equivalents, end of the period | 3,970,011 | |
Non-cash investing and financing activities: | ||
Cash paid for interest | $ 91,076 | $ 294,219 |
Description of business and sum
Description of business and summary of significant accounting policies | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Description of business and summary of significant accounting policies | Description of business and summary of significant accounting policies Description of business Tecogen Inc., or the Company was organized, as a Delaware Corporation on November 15, 2000, and acquired the assets and liabilities of the Tecogen Products division of Thermo Power Corporation. The Company produces 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. The Company’s 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 the Company’s customers are located in regions with the highest utility rates, typically California, the Midwest and the Northeast. The Company's common stock is listed on the NASDAQ under the ticker symbol TGEN. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions for Form 10-Q and therefore do not include all information and notes necessary for a complete presentation of our financial position, results of operations and cash flows, in conformity with generally accepted accounting principles. We filed audited financial statements which included all information and notes necessary for such presentation for the two years ended December 31, 2014 in conjunction with our 2014 Annual Report on Form 10-K, or our Annual Report, filed with the Securities and Exchange Commission, or SEC, on March 24, 2015 . This form 10-Q should be read in conjunction with our Annual Report. The accompanying unaudited condensed consolidated balance sheets, statements of operations and statements of cash flows reflect all adjustments (consisting only of normal recurring items) which are, in the opinion of management, necessary for a fair presentation of financial position at September 30, 2015 , and of operations and cash flows for the interim periods ended September 30, 2015 and 2014 . The results of operations for the interim periods ended September 30, 2015 are not necessarily indicative of the results to be expected for the year. The accompanying condensed consolidated financial statements include the accounts of the Company and its 65.0% owned subsidiary Ilios Inc. or Ilios, whose business focus is on advanced heating systems for commercial and industrial applications. With the inclusion of unvested restricted stock awards, the Company owns 63.7% of Ilios. Non controlling interest in the accompanying consolidated balance sheets represents the ownership of minority investors of Ilios. The Company’s operations are comprised of one business segment. Our business is to manufacture and support highly efficient CHP products based on engines fueled by natural gas. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Revenue Recognition Revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the price is fixed or determinable and collectability is reasonably assured. Generally, sales of cogeneration and chiller units and parts are recognized when shipped and services are recognized over the term of the service period. Payments received in advance of services being performed or as a deposit on equipment are recorded as deferred revenue. Infrequently, the Company recognizes revenue in certain circumstances before delivery has occurred (commonly referred to as bill and hold transactions). In such circumstances, among other things, risk of ownership has passed to the buyer, the buyer has made a written fixed commitment to purchase the finished goods, the buyer has requested the finished goods be held for future delivery as scheduled and designated by them, and no additional performance obligations exist by the Company. For these transactions, the finished goods are segregated from inventory and normal billing and credit terms are granted. For the three and nine months ended September 30, 2015 , revenues of $747,328 were recorded as bill and hold transactions. For the same period in 2014 , no revenues were recorded as bill and hold transactions. For those arrangements that include multiple deliverables, the Company first determines whether each service or deliverable meets the separation criteria of FASB ASC 605-25, Revenue Recognition—Multiple-Element Arrangements . In general, a deliverable (or a group of deliverables) meets the separation criteria if the deliverable has stand-alone value to the customer and if the arrangement includes a general right of return related to the delivered item and delivery or performance of the undelivered item(s) is considered probable and substantially in control of the Company. Each deliverable that meets the separation criteria is considered a separate ‘‘unit of accounting”. The Company allocates the total arrangement consideration to each unit of accounting using the relative fair value method. The amount of arrangement consideration that is allocated to a delivered unit of accounting is limited to the amount that is not contingent upon the delivery of another unit of accounting. When vendor-specific objective evidence or third-party evidence is not available, adopting the relative fair value method of allocation permits the Company to recognize revenue on specific elements as completed based on the estimated selling price. The Company generally uses internal pricing lists that determine sales prices to external customers in determining its best estimate of the selling price of the various deliverables in multiple-element arrangements. Changes in judgments made in estimating the selling price of the various deliverables could significantly affect the timing or amount of revenue recognition. The Company enters into sales arrangements with customers to sell its cogeneration and chiller units and related service contracts and occasionally installation services. Based on the fact that the Company sells each deliverable to other customers on a stand-alone basis, the Company has determined that each deliverable has a stand-alone value. Additionally, there are no rights of return relative to the delivered items; therefore, each deliverable is considered a separate unit of accounting. After the arrangement consideration has been allocated to each unit of accounting, the Company applies the appropriate revenue recognition method for each unit of accounting based on the nature of the arrangement and the services included in each unit of accounting. Cogeneration and chiller units are recognized when shipped and services are recognized over the term of the applicable agreement, or as provided when on a time and materials basis. In some cases, our customers may choose to have the Company engineer and install the system for them rather than simply purchase the cogeneration and/or chiller units. In this case, the Company accounts for revenue, or turnkey revenue, and costs using the percentage-of-completion method of accounting. Under the percentage-of-completion method of accounting, revenues are recognized by applying percentages of completion to the total estimated revenues for the respective contracts. Costs are recognized as incurred. The percentages of completion are determined by relating the actual cost of work performed to date to the current estimated total cost at completion of the respective contracts. When the estimate on a contract indicates a loss, the Company’s policy is to record the entire expected loss, regardless of the percentage of completion. During the nine months ended September 30, 2015 and 2014 , a loss of approximately $0 and $217,000 was recorded, respectively. The excess of contract costs and profit recognized to date on the percentage-of-completion accounting method in excess of billings is recorded as unbilled revenue. Billings in excess of related costs and estimated profit is recorded as deferred revenue. Accounts Receivable Accounts receivable are stated at the amount management expects to collect from outstanding balances. An allowance for doubtful accounts is provided for those accounts receivable considered to be uncollectible based upon historical experience and management’s evaluation of outstanding accounts receivable at the end of the year. Bad debts are written off against the allowance when identified. At September 30, 2015 and December 31, 2014 the allowance for doubtful accounts was $50,000 . Inventory Raw materials, work in process, and finished goods inventories are stated at the lower of cost, as determined by the average cost method, or net realizable value. The Company periodically reviews inventory quantities on hand for excess and/or obsolete inventory based primarily on historical usage, as well as based on estimated forecast of product demand. Any reserves that result from this review are charged to cost of sales. At September 30, 2015 and December 31, 2014 , inventory reserves were $275,000 and $300,000 , respectively. Property, Plant and Equipment Property, plant and equipment are recorded at cost. Depreciation is provided using the straight-line method over the estimated useful lives of the asset, which range from three to fifteen years. Leasehold improvements are amortized using the straight-line method over the lesser of the estimated useful lives of the assets or the term of the related leases. Expenditures for maintenance and repairs are expensed currently, while renewals and betterments that materially extend the life of an asset are capitalized. For the three and nine months ended September 30, 2015 and 2014 , depreciation expense was $42,366 and $28,716 , and $129,775 and $148,108 , respectively. Intangible Assets Intangible assets are amortized on a straight-line basis over the estimated economic life of the intangible asset. The Company reviews intangible assets for impairment when the circumstances warrant. Goodwill The Company tests its recorded goodwill for impairment in the fourth quarter, or more often if indicators of potential impairment exist, by determining if the carrying value of the Company's single reporting unit exceeds its estimated fair value. During the first nine months of 2015 , the Company determined that no interim impairment test was necessary. Stock-Based Compensation Stock-based compensation cost is measured at the grant date based on the estimated fair value of the award and is recognized as an expense in the consolidated statements of operations over the requisite service period. The fair value of stock options granted is estimated using the Black-Scholes option pricing valuation model. The Company recognizes compensation on a straight-line basis for each separately vesting portion of the option award. The determination of the fair value of share-based payment awards is affected by the Company’s stock price. The Company uses the simplified method for awards of stock-based compensation since it does not have the necessary historical exercise and forfeiture data to determine an expected life for stock options. (see “Note 4 – Stock-based compensation”.) Revenues by Product The following table summarizes net revenue by product line and services for the three and nine months ended September 30, 2015 and 2014 : Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Products Cogeneration $ 1,493,335 $ 626,223 $ 6,592,075 $ 3,200,073 Chiller & Heat Pump 367,525 468,306 2,152,231 1,847,158 Total Product Revenue 1,860,860 1,094,529 8,744,306 5,047,231 Services Service contracts 1,921,897 1,808,154 5,829,304 5,503,010 Installations 893,285 1,273,180 2,589,697 2,381,236 Total Service Revenue 2,815,182 3,081,334 8,419,001 7,884,246 Total Revenue $ 4,676,042 $ 4,175,863 $ 17,163,307 $ 12,931,477 Reclassification Certain prior period balances have been reclassified to conform with current period presentation. As a result, installation revenue is broken out in the schedule of net revenue by product line and services above; in the prior period this revenue was included in services. Research and development expense is separated from general and administrative expense for this interim report. The interest expense includes the amortization of the deferred financing costs, and this has been adjusted in the comparable periods. Recently Issued Accounting Standards On July 22, 2015, the FASB issued Accounting Standards Update (“ASU”) No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory , which changes the measurement principle for inventory from the lower of cost or market to lower of cost and net realizable value. The ASU defines net realizable value as the “estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation”. The ASU will not apply to inventories that are measured by using either the last-in, first-out (LIFO) method or the retail inventory method. The guidance in the ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is allowed. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. |
Loss per common share
Loss per common share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Loss per common share | Loss per common share All shares issuable for both periods were anti-dilutive because of the reported net loss. Basic and diluted loss per share for the three and nine months ended September 30, 2015 and 2014 , respectively, were as follows: Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Net loss attributable to stockholders $ (948,842 ) $ (1,447,798 ) $ (1,929,144 ) $ (3,715,550 ) Weighted average shares outstanding - Basic and diluted 17,153,999 15,447,726 16,575,879 15,160,041 Basic and diluted loss per share $ (0.06 ) $ (0.09 ) $ (0.12 ) $ (0.25 ) Anti-dilutive shares underlying stock options outstanding 1,186,325 1,254,325 1,186,325 1,254,325 Anti-dilutive convertible debentures 625,000 555,556 625,000 555,556 |
Demand note payable, convertibl
Demand note payable, convertible debentures and line of credit agreement to related parties | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Demand note payable, convertible debentures and line of credit agreement to related parties | Demand notes payable, convertible debentures and line of credit agreement to related parties On December 23, 2013, the Company entered into a Senior Convertible Promissory Note or the Note, with Michaelson Capital Special Finance Fund LP or Michaelson, for the principal amount of $3,000,000 with interest at 4% per annum for a term of three years. In the event of default such interest rate shall accrue at 8% after the occurrence of the event of default and during continuance plus 2% after the occurrence and during the continuance of any other event of default. The Note is a senior unsecured obligation which pays interest only on a monthly basis in arrears at a rate of 4% per annum, unless earlier converted in accordance with the terms of the agreement prior to such date. The principal amount, if not converted, is due on the third anniversary of the Note, December 31, 2016. The Note is senior in right of payment to any unsecured indebtedness that is expressly subordinated in right of payment to the Note. The principal balance of the Note, together with any unpaid interest, is convertible into shares of the Company's common stock at 185.19 shares of the Company's common stock per $1,000 principal amount of Note (equivalent to a conversion price of $5.40 per share) at the option of Michaelson. If at any time the common stock of the Company is (1) trading on a national securities exchange, (2) qualifies for unrestricted resale under federal securities laws and (3) the arithmetic average of the volume weighted average price of the Common Stock for twenty consecutive trading days preceding the Company's notice of mandatory conversion exceeds $150,000 , the Company shall have the right to require conversion of all of the then outstanding principal balance together with unpaid interest of this Note into the Company's common stock based on the conversion price of $5.40 per share. The Company may prepay all of the outstanding principal and interest due and payable under this Note in full, at any time prior to the maturity date for an amount equal to 120% of the then outstanding principal and interest due and payable as of the date of such prepayment. Upon change of control, as defined by the Note, at Michaelson's option, the obligations may be assumed, on the terms and conditions in this Note, through an assignment and assumption agreement, or the Company may prepay all of the then outstanding principal and unpaid interest under this Note in full at the optional 120% prepayment amount. This provision creates an embedded derivative in accordance with FASB ASC 815, Derivatives and Hedging. As such it is required to be bifurcated and accounted for separately from the Note. However, the Company has determined that the fair value of the embedded derivative is immaterial to the consolidated financial statements. Debt issuance costs of $147,577 are being amortized to expense over the term of the Note using the effective interest method. As per the agreement, the sale of equity on August 3, 2015 reduced the conversion price to $4.80 and increased the number of shares in the conversation. At September 30, 2015 , there were 625,000 shares of common stock issuable upon conversion of the Company’s outstanding convertible debentures as compared to 555,556 at December 31, 2014 . On June 15, 2015, the Company entered into a Non-Revolving Line of Credit Agreement, or the Agreement, with John N. Hatsopoulos, the Company's Co-Chief Executive Officer and a Company Director. Under the terms of the Agreement, Mr. Hatsopoulos has agreed to lend the Company up to an aggregate of $2,000,000 , with a withdrawal limit of $250,000 per financial calendar quarter, at the written request of the Company. Any amounts borrowed by the Company pursuant to the Agreement will bear interest at 6% per year. Interest is due and payable quarterly in arrears. The term of the Agreement is from July 1, 2015 to July 1, 2017. Repayment of the principal amount borrowed pursuant to the Agreement will be due on July 1, 2017, or the Maturity Date. Prepayment of any amounts due under the Agreement may be made at any time without penalty. The Agreement terminates on the Maturity Date. The Company has not yet borrowed any amounts pursuant to the Agreement. |
Stockholder Equity
Stockholder Equity | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Stockholder Equity | Stockholder Equity On August 3, 2015, Tecogen Inc., (the "Company"), entered into a common stock purchase agreement, (the "Common Stock Purchase Agreement"), and a registration rights agreement (the "Registration Rights Agreement") with Seashell Limited. Pursuant to the Common Stock Purchase Agreement, the Company sold, and the investor purchased, 1,250,000 shares of the Company’s common stock (the "Shares"), at a price of $4.00 per share for an aggregate purchase price of $5,000,000 , (the "Private Placement"). Pursuant to the Registration Rights Agreement, the Company shall as soon as practicable file with the U.S. Securities And Exchange Commission a registration statement on an appropriate form (the “Registration Statement”) covering the resale of the Shares and shall use its commercially reasonable best efforts to cause the Registration Statement to be declared effective as soon as practicable. |
Stock-based compensation
Stock-based compensation | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Stock-based compensation | Stock-based compensation Stock-Based Compensation In 2006, the Company adopted the 2006 Stock Option and Incentive Plan or the Plan, under which the Board of Directors may grant incentive or non-qualified stock options and stock grants to key employees, directors, advisors and consultants of the Company. The Plan was amended at various dates by the Board of Directors to increase the reserved shares of common stock issuable under the Plan to 3,838,750 as of September 30, 2015, or the Amended Plan. Stock options vest based upon the terms within the individual option grants, with an acceleration of the unvested portion of such options upon a change in control event, as defined in the Amended Plan. The options are not transferable except by will or domestic relations order. The option price per share under the Amended Plan cannot be less than the fair market value of the underlying shares on the date of the grant. The number of shares remaining available for future issuance under the Amended Plan as of September 30, 2015 was 1,617,533 . Stock option activity for the nine months ended September 30, 2015 was as follows: Common Stock Options Number of Options Exercise Share Weighted Price Weighted Life Aggregate Value Outstanding, December 31, 2014 1,356,325 $1.20-$5.39 $ 2.77 5.12 years $ 3,618,935 Granted 160,000 $3.39-$4.05 3.43 Exercised (222,375 ) $1.20-$2.60 1.62 Canceled and forfeited (28,750 ) $1.20-$4.50 2.45 Expired — — — Outstanding, September 30, 2015 1,265,200 $1.20-$5.39 $ 3.06 6.25 years $ 955,919 Exercisable, September 30, 2015 776,619 $ 2.30 $ 935,747 Vested and expected to vest, September 30, 2015 1,165,200 $ 2.90 $ 955,919 Stock-Based Compensation - Ilios In 2009, Ilios adopted the 2009 Stock Incentive Plan, or the 2009 Plan, under which the Board of Directors may grant incentive or non-qualified stock options and stock grants to key employees, directors, advisors and consultants of the Company. The maximum number of shares allowable for issuance under the 2009 Plan is 2,000,000 shares of common stock. The 2009 Plan has 1,325,000 available for grant as of September 30, 2015. There were no grants during 2015 to date. Stock options vest based upon the terms within the individual option grants, with an acceleration of the unvested portion of such options upon a change in control event, as defined in the Plan. Consolidated stock-based compensation expense for the nine months ended September 30, 2015 and 2014 was $90,971 and $120,972 , respectively. No tax benefit was recognized related to the stock-based compensation recorded during the periods. |
Commitments and contingencies
Commitments and contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Commitments and contingencies Letters of Credit A letter of credit of $583,073 , the original value of the short term investment prior to an increase from interest income of $2,629 , was outstanding under a revolving bank credit facility needed to collateralize a performance bond on a certain installation project. As the projects are completed, collateral requirements and the associated revolving bank credit facility has relieved resulting in the release of restricted cash and a lowering of the revolving bank credit facility. The remaining restricted cash balance of $294,728 is for retainage associated with this performance bond. On June 15, 2015, the Company entered into a Non-Revolving Line of Credit Agreement with John N. Hatsopoulos, the Company's Co-Chief Executive Officer and a Company Director (see Note 3). |
Related party transactions
Related party transactions | 9 Months Ended |
Sep. 30, 2015 | |
Related Party Transactions [Abstract] | |
Related party transactions | Related party transactions The Company has two affiliated companies, namely American DG Energy Inc., or American DG Energy, and EuroSite Power Inc. or EuroSite Power. These companies are affiliates because several of the major stockholders of those companies, have a significant ownership position in the Company. Neither American DG Energy nor EuroSite Power own any shares of the Company, and the Company does not own any shares of American DG Energy or EuroSite Power. On December 23, 2013, the Company entered into a Senior Convertible Promissory Note with Michaelson Capital Special Finance Fund LP (see Note 3). This agreement came with board observation rights causing the related party status. On June 15, 2015, the Company entered into a Non-Revolving Line of Credit Agreement with John N. Hatsopoulos, the Company's Co-Chief Executive Officer and a Company Director (see Note 3). On August 26, 2015, the Company granted options to a consultant who is acting as Managing Director of Communications. This individual is a related to SeaShell Ltd. which made the previously discussed private placement (see Note 4). The Company provides office space and certain utilities to American DG Energy based on a monthly rate set at the beginning of each year. This sublease was signed on July 1, 2014 and subsequently amended. The lease will expire on July 1, 2017. The agreement contains an automatic monthly renewal at expiration. In addition, the Company pays certain operating expenses, including benefits and insurance, on behalf of American DG Energy. The Company is reimbursed for these costs. |
Amortizable intangible assets
Amortizable intangible assets | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible assets other than goodwill | Intangible assets other than goodwill As of December 31, 2014 and September 30, 2015 the Company has the following amounts related to intangible assets: Product Certifications Patents Developed Technology Total Balance at December 31, 2014 Intangible assets $ 475,344 $ 514,930 $ 240,000 $ 1,230,274 Less - accumulated amortization (128,732 ) (62,242 ) (28,000 ) (218,974 ) $ 346,612 $ 452,688 $ 212,000 $ 1,011,300 Balance at September 30, 2015 Intangible assets $ 510,127 $ 590,649 240,000 $ 1,340,776 Less - accumulated amortization (170,236 ) (84,224 ) (40,000 ) (294,460 ) $ 339,891 $ 506,425 $ 200,000 $ 1,046,316 The aggregate amortization expense of the Company's intangible assets for the three and nine months ended September 30, 2015 and 2014 was $24,067 and $22,255 , and $75,487 and $63,181 , respectively. |
Description of business and s14
Description of business and summary of significant accounting policies (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions for Form 10-Q and therefore do not include all information and notes necessary for a complete presentation of our financial position, results of operations and cash flows, in conformity with generally accepted accounting principles. We filed audited financial statements which included all information and notes necessary for such presentation for the two years ended December 31, 2014 in conjunction with our 2014 Annual Report on Form 10-K, or our Annual Report, filed with the Securities and Exchange Commission, or SEC, on March 24, 2015 . This form 10-Q should be read in conjunction with our Annual Report. The accompanying unaudited condensed consolidated balance sheets, statements of operations and statements of cash flows reflect all adjustments (consisting only of normal recurring items) which are, in the opinion of management, necessary for a fair presentation of financial position at September 30, 2015 , and of operations and cash flows for the interim periods ended September 30, 2015 and 2014 . The results of operations for the interim periods ended September 30, 2015 are not necessarily indicative of the results to be expected for the year. The accompanying condensed consolidated financial statements include the accounts of the Company and its 65.0% owned subsidiary Ilios Inc. or Ilios, whose business focus is on advanced heating systems for commercial and industrial applications. With the inclusion of unvested restricted stock awards, the Company owns 63.7% of Ilios. Non controlling interest in the accompanying consolidated balance sheets represents the ownership of minority investors of Ilios. The Company’s operations are comprised of one business segment. Our business is to manufacture and support highly efficient CHP products based on engines fueled by natural gas. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates |
Revenue Recognition | Revenue Recognition Revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the price is fixed or determinable and collectability is reasonably assured. Generally, sales of cogeneration and chiller units and parts are recognized when shipped and services are recognized over the term of the service period. Payments received in advance of services being performed or as a deposit on equipment are recorded as deferred revenue. Infrequently, the Company recognizes revenue in certain circumstances before delivery has occurred (commonly referred to as bill and hold transactions). In such circumstances, among other things, risk of ownership has passed to the buyer, the buyer has made a written fixed commitment to purchase the finished goods, the buyer has requested the finished goods be held for future delivery as scheduled and designated by them, and no additional performance obligations exist by the Company. For these transactions, the finished goods are segregated from inventory and normal billing and credit terms are granted. For the three and nine months ended September 30, 2015 , revenues of $747,328 were recorded as bill and hold transactions. For the same period in 2014 , no revenues were recorded as bill and hold transactions. For those arrangements that include multiple deliverables, the Company first determines whether each service or deliverable meets the separation criteria of FASB ASC 605-25, Revenue Recognition—Multiple-Element Arrangements . In general, a deliverable (or a group of deliverables) meets the separation criteria if the deliverable has stand-alone value to the customer and if the arrangement includes a general right of return related to the delivered item and delivery or performance of the undelivered item(s) is considered probable and substantially in control of the Company. Each deliverable that meets the separation criteria is considered a separate ‘‘unit of accounting”. The Company allocates the total arrangement consideration to each unit of accounting using the relative fair value method. The amount of arrangement consideration that is allocated to a delivered unit of accounting is limited to the amount that is not contingent upon the delivery of another unit of accounting. When vendor-specific objective evidence or third-party evidence is not available, adopting the relative fair value method of allocation permits the Company to recognize revenue on specific elements as completed based on the estimated selling price. The Company generally uses internal pricing lists that determine sales prices to external customers in determining its best estimate of the selling price of the various deliverables in multiple-element arrangements. Changes in judgments made in estimating the selling price of the various deliverables could significantly affect the timing or amount of revenue recognition. The Company enters into sales arrangements with customers to sell its cogeneration and chiller units and related service contracts and occasionally installation services. Based on the fact that the Company sells each deliverable to other customers on a stand-alone basis, the Company has determined that each deliverable has a stand-alone value. Additionally, there are no rights of return relative to the delivered items; therefore, each deliverable is considered a separate unit of accounting. After the arrangement consideration has been allocated to each unit of accounting, the Company applies the appropriate revenue recognition method for each unit of accounting based on the nature of the arrangement and the services included in each unit of accounting. Cogeneration and chiller units are recognized when shipped and services are recognized over the term of the applicable agreement, or as provided when on a time and materials basis. In some cases, our customers may choose to have the Company engineer and install the system for them rather than simply purchase the cogeneration and/or chiller units. In this case, the Company accounts for revenue, or turnkey revenue, and costs using the percentage-of-completion method of accounting. Under the percentage-of-completion method of accounting, revenues are recognized by applying percentages of completion to the total estimated revenues for the respective contracts. Costs are recognized as incurred. The percentages of completion are determined by relating the actual cost of work performed to date to the current estimated total cost at completion of the respective contracts. When the estimate on a contract indicates a loss, the Company’s policy is to record the entire expected loss, regardless of the percentage of completion. During the nine months ended September 30, 2015 and 2014 , a loss of approximately $0 and $217,000 was recorded, respectively. The excess of contract costs and profit recognized to date on the percentage-of-completion accounting method in excess of billings is recorded as unbilled revenue. Billings in excess of related costs and estimated profit is recorded as deferred revenue. |
Accounts Receivable | Accounts Receivable Accounts receivable are stated at the amount management expects to collect from outstanding balances. An allowance for doubtful accounts is provided for those accounts receivable considered to be uncollectible based upon historical experience and management’s evaluation of outstanding accounts receivable at the end of the year. Bad debts are written off against the allowance when identified. At September 30, 2015 and December 31, 2014 the allowance for doubtful accounts was $50,000 . |
Inventory | Inventory Raw materials, work in process, and finished goods inventories are stated at the lower of cost, as determined by the average cost method, or net realizable value. The Company periodically reviews inventory quantities on hand for excess and/or obsolete inventory based primarily on historical usage, as well as based on estimated forecast of product demand. Any reserves that result from this review are charged to cost of sales. At September 30, 2015 and December 31, 2014 , inventory reserves were $275,000 and $300,000 , respectively. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are recorded at cost. Depreciation is provided using the straight-line method over the estimated useful lives of the asset, which range from three to fifteen years. Leasehold improvements are amortized using the straight-line method over the lesser of the estimated useful lives of the assets or the term of the related leases. Expenditures for maintenance and repairs are expensed currently, while renewals and betterments that materially extend the life of an asset are capitalized. For the three and nine months ended September 30, 2015 and 2014 , depreciation expense was $42,366 and $28,716 , and $129,775 and $148,108 , respectively. |
Intangible Assets | Intangible Assets Intangible assets are amortized on a straight-line basis over the estimated economic life of the intangible asset. The Company reviews intangible assets for impairment when the circumstances warrant. |
Goodwill Disclosure | Goodwill The Company tests its recorded goodwill for impairment in the fourth quarter, or more often if indicators of potential impairment exist, by determining if the carrying value of the Company's single reporting unit exceeds its estimated fair value. During the first nine months of 2015 , the Company determined that no interim impairment test was necessary. |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation cost is measured at the grant date based on the estimated fair value of the award and is recognized as an expense in the consolidated statements of operations over the requisite service period. The fair value of stock options granted is estimated using the Black-Scholes option pricing valuation model. The Company recognizes compensation on a straight-line basis for each separately vesting portion of the option award. The determination of the fair value of share-based payment awards is affected by the Company’s stock price. The Company uses the simplified method for awards of stock-based compensation since it does not have the necessary historical exercise and forfeiture data to determine an expected life for stock options. (see “Note 4 – Stock-based compensation”.) |
Description of business and s15
Description of business and summary of significant accounting policies (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Net Revenue by Product Line and Services | The following table summarizes net revenue by product line and services for the three and nine months ended September 30, 2015 and 2014 : Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Products Cogeneration $ 1,493,335 $ 626,223 $ 6,592,075 $ 3,200,073 Chiller & Heat Pump 367,525 468,306 2,152,231 1,847,158 Total Product Revenue 1,860,860 1,094,529 8,744,306 5,047,231 Services Service contracts 1,921,897 1,808,154 5,829,304 5,503,010 Installations 893,285 1,273,180 2,589,697 2,381,236 Total Service Revenue 2,815,182 3,081,334 8,419,001 7,884,246 Total Revenue $ 4,676,042 $ 4,175,863 $ 17,163,307 $ 12,931,477 |
Loss per common share (Tables)
Loss per common share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Loss Per Common Share, Basic and Diluted | Basic and diluted loss per share for the three and nine months ended September 30, 2015 and 2014 , respectively, were as follows: Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Net loss attributable to stockholders $ (948,842 ) $ (1,447,798 ) $ (1,929,144 ) $ (3,715,550 ) Weighted average shares outstanding - Basic and diluted 17,153,999 15,447,726 16,575,879 15,160,041 Basic and diluted loss per share $ (0.06 ) $ (0.09 ) $ (0.12 ) $ (0.25 ) Anti-dilutive shares underlying stock options outstanding 1,186,325 1,254,325 1,186,325 1,254,325 Anti-dilutive convertible debentures 625,000 555,556 625,000 555,556 |
Stock-based compensation (Table
Stock-based compensation (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Restricted Stock Activity | Consolidated stock-based compensation expense for the nine months ended September 30, 2015 and 2014 was $90,971 and $120,972 , respectively. No tax benefit was recognized related to the stock-based compensation recorded during the periods. |
Tecogen | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Stock Option Activity | Stock option activity for the nine months ended September 30, 2015 was as follows: Common Stock Options Number of Options Exercise Share Weighted Price Weighted Life Aggregate Value Outstanding, December 31, 2014 1,356,325 $1.20-$5.39 $ 2.77 5.12 years $ 3,618,935 Granted 160,000 $3.39-$4.05 3.43 Exercised (222,375 ) $1.20-$2.60 1.62 Canceled and forfeited (28,750 ) $1.20-$4.50 2.45 Expired — — — Outstanding, September 30, 2015 1,265,200 $1.20-$5.39 $ 3.06 6.25 years $ 955,919 Exercisable, September 30, 2015 776,619 $ 2.30 $ 935,747 Vested and expected to vest, September 30, 2015 1,165,200 $ 2.90 $ 955,919 |
Amortizable intangible assets (
Amortizable intangible assets (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | As of December 31, 2014 and September 30, 2015 the Company has the following amounts related to intangible assets: Product Certifications Patents Developed Technology Total Balance at December 31, 2014 Intangible assets $ 475,344 $ 514,930 $ 240,000 $ 1,230,274 Less - accumulated amortization (128,732 ) (62,242 ) (28,000 ) (218,974 ) $ 346,612 $ 452,688 $ 212,000 $ 1,011,300 Balance at September 30, 2015 Intangible assets $ 510,127 $ 590,649 240,000 $ 1,340,776 Less - accumulated amortization (170,236 ) (84,224 ) (40,000 ) (294,460 ) $ 339,891 $ 506,425 $ 200,000 $ 1,046,316 |
Description of business and s19
Description of business and summary of significant accounting policies - Additional Information (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015USD ($) | Sep. 30, 2015USD ($)segment | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($) | |
Debt Instrument [Line Items] | ||||
Number of Operating Segments | segment | 1 | |||
Revenues, Bill And Hold | $ 747,328 | $ 747,328 | ||
Loss on Contracts | 0 | $ 217,000 | ||
Allowance for Doubtful Accounts Receivable, Current | 50,000 | 50,000 | $ 50,000 | |
Goodwill | $ 40,870 | $ 40,870 | $ 40,870 | |
Ilios | ||||
Debt Instrument [Line Items] | ||||
Noncontrolling Interest, Ownership Percentage by Parent | 65.00% | 65.00% | ||
Restricted stock | Ilios | ||||
Debt Instrument [Line Items] | ||||
Noncontrolling Interest, Ownership Percentage by Parent | 63.70% | 63.70% |
Description of business and s20
Description of business and summary of significant accounting policies - Property, Plant and Equipment (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation | $ 42,366 | $ 28,716 | $ 129,775 | $ 148,108 |
Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, estimated useful lives | 3 years | |||
Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, estimated useful lives | 15 years |
Description of business and s21
Description of business and summary of significant accounting policies - Revenue by Product Line and Services (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenue by Producks and Services [Line Items] | ||||
Products | $ 1,860,860 | $ 1,094,529 | $ 8,744,306 | $ 5,047,231 |
Services | 2,815,182 | 3,081,334 | 8,419,001 | 7,884,246 |
Total revenues | 4,676,042 | 4,175,863 | 17,163,307 | 12,931,477 |
Cogeneration | ||||
Revenue by Producks and Services [Line Items] | ||||
Products | 1,493,335 | 626,223 | 6,592,075 | 3,200,073 |
Chiller | ||||
Revenue by Producks and Services [Line Items] | ||||
Products | 367,525 | 468,306 | 2,152,231 | 1,847,158 |
Service Contracts [Member] | ||||
Revenue by Producks and Services [Line Items] | ||||
Services | 1,921,897 | 1,808,154 | 5,829,304 | 5,503,010 |
Installations [Member] | ||||
Revenue by Producks and Services [Line Items] | ||||
Services | $ 893,285 | $ 1,273,180 | $ 2,589,697 | $ 2,381,236 |
Loss per common share - Schedul
Loss per common share - Schedule of Loss Per Common Share, Basic and Diluted (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Net loss attributable to stockholders | $ (948,842) | $ (1,447,798) | $ (1,929,144) | $ (3,715,550) |
Weighted average shares outstanding - Basic and diluted | 17,153,999 | 15,447,726 | 16,575,879 | 15,160,041 |
Basic and diluted loss per share (usd per share) | $ (0.06) | $ (0.09) | $ (0.12) | $ (0.25) |
Stock Options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities (shares) | 1,186,325 | 1,254,325 | 1,186,325 | 1,254,325 |
Convertible Debenture | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities (shares) | 625,000 | 555,556 | 625,000 | 555,556 |
Demand note payable, converti23
Demand note payable, convertible debentures and line of credit agreement to related parties (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2014shares | Dec. 31, 2013USD ($)shares | Sep. 30, 2015$ / shares | Dec. 31, 2014USD ($)shares$ / shares | Jun. 15, 2015USD ($) | |
Convertible debentures | Michaelson Capital Special Finance Fund LP. [Member] | |||||
Debt Instrument [Line Items] | |||||
Related party debt, stated interest rate | 4.00% | ||||
Conversion price in usd per share | $ / shares | $ 4.80 | $ 5.40 | |||
Debt conversion, amount converted | $ 1,000 | ||||
Convertible debentures, related party, current | $ 3,000,000 | ||||
Debt Instrument, Term | 3 years | ||||
Debt Instrument, Convertible, Accrue Rate After Occurrence and During Continuance | 8.00% | ||||
Debt Instrument, Convertible, Accrue Rate After Occurrence and During Continuance, Other Default | 2.00% | ||||
Debt Instrument, Convertible, Threshold Consecutive Trading Days | 20 days | ||||
Debt Instrument, Convertible, If-converted Value in Excess of Principal | $ 150,000 | ||||
Debt Instrument, Repurchase, Percentage of Principal and Interest | 120.00% | ||||
Debt Issuance Cost | $ 147,577 | ||||
Convertible debentures | Michaelson Capital Special Finance Fund LP. [Member] | Common Stock [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt conversion, number of shares issued | shares | 185.19 | ||||
Common stock issuable upon conversion | shares | 625,000 | 555,556 | |||
Convertible debentures | Management [Member] | |||||
Debt Instrument [Line Items] | |||||
Related party debt, stated interest rate | 6.00% | ||||
Line of Credit [Member] | Chief Executive Officer (John N. Hatsopoulos) | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,000,000 | ||||
Line Of Credit Facility, Maximum Withdrawal Limit Per Financial Calendar Quarter | $ 250,000 |
Stockholder Equity (Details)
Stockholder Equity (Details) - Private Placement [Member] - Common Stock [Member] | Aug. 03, 2015USD ($)$ / sharesshares |
Class of Stock [Line Items] | |
Shares purchased by the Investor | shares | 1,250,000 |
Shares purchase price (in dollars per share) | $ / shares | $ 4 |
Aggregate purchase price for private placement | $ 5,000,000 |
Stock-based compensation - Stoc
Stock-based compensation - Stock-Based Compensation (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation | $ 90,971 | $ 120,972 |
Tecogen | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grants during period | 160,000 | |
Tecogen | Amended Plan | Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares of common stock reserved for future issuance | 3,838,750 | |
Number of shares remaining available for future issuance | 1,617,533 | |
Tecogen | 2009 Plan | Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares remaining available for future issuance | 1,325,000 | |
Grants during period | 0 | |
Ilois | 2009 Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Maximum number of shares allowable for issuance | 2,000,000 |
Stock-based compensation - St26
Stock-based compensation - Stock Option Activity (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2015 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | |
Exercise Price Per Share [Abstract] | |||||
Exercise Price Per Share, Expired (per share) | $ 0 | ||||
Tecogen | |||||
Stock Options Outstanding [Roll Forward] | |||||
Beginning (shares) | 1,356,325 | ||||
Granted (shares) | 160,000 | ||||
Exercised (shares) | (222,375) | ||||
Canceled and forfeited (shares) | (28,750) | ||||
Expired (shares) | 0 | ||||
Ending (shares) | 1,265,200 | ||||
Exercisable (shares) | 776,619 | ||||
Vested and expected to vest (shares) | 1,165,200 | ||||
Weighted Average Exercise Price [Roll Forward] | |||||
Beginning (usd per share) | $ 2.77 | ||||
Granted (usd per share) | 3.43 | ||||
Exercised (usd per share) | 1.62 | ||||
Canceled and forfeited (usd per share) | 2.45 | ||||
Expried (usd per share) | 0 | ||||
Ending (usd per share) | 3.06 | ||||
Exercisable (usd per share) | 2.30 | ||||
Vested and expected to vest (usd per share) | $ 2.90 | ||||
Weighted Average Remaining Life | 6 years 3 months | 5 years 1 month 12 days | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |||||
Outstanding, Aggregate Intrinsic Value | $ 955,919 | $ 3,618,935 | |||
Exercisable, Aggregate Intrinsic Value | 935,747 | ||||
Vested and expected to vest, Aggregate Intrinsic Value | $ 955,919 | ||||
Minimum | Tecogen | |||||
Exercise Price Per Share [Abstract] | |||||
Exercise Price Per Share, Outstanding (per share) | $ 1.2 | $ 1.20 | |||
Exercise Price Per Share, Granted (per share) | $ 1.20 | ||||
Exercise Price Per Share, Cancelled and forfeited (per share) | 1.2 | ||||
Maximum | Tecogen | |||||
Exercise Price Per Share [Abstract] | |||||
Exercise Price Per Share, Outstanding (per share) | $ 5.39 | 5.39 | |||
Exercise Price Per Share, Granted (per share) | $ 2.60 | ||||
Exercise Price Per Share, Cancelled and forfeited (per share) | $ 4.50 |
Commitments and contingencies -
Commitments and contingencies - Additional Information (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Guarantor Obligations [Line Items] | ||
Short-term investments, restricted | $ 294,728 | $ 585,702 |
Revolving Credit Facility [Member] | ||
Guarantor Obligations [Line Items] | ||
Letters of Credit Outstanding, Amount | 583,073 | |
Letter of credit, increase from accrued interest | $ 2,629 |
Related party transactions (Det
Related party transactions (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2014shares | Dec. 31, 2013USD ($)shares | Sep. 30, 2015USD ($)company$ / shares | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($)shares$ / shares | |
Related Party Transaction [Line Items] | |||||
Number of affiliated companies | company | 2 | ||||
Interest Paid | $ 91,076 | $ 294,219 | |||
Michaelson Capital Special Finance Fund LP. [Member] | Convertible debentures | |||||
Related Party Transaction [Line Items] | |||||
Related party debt, stated interest rate | 4.00% | ||||
Debt Instrument, Term | 3 years | ||||
Conversion price in usd per share | $ / shares | $ 4.80 | $ 5.40 | |||
Debt Issuance Cost | $ 147,577 | ||||
Debt conversion, amount converted | $ 1,000 | ||||
Current portion of convertible debentures, related party | $ 3,000,000 | ||||
Michaelson Capital Special Finance Fund LP. [Member] | Convertible debentures | Common Stock [Member] | |||||
Related Party Transaction [Line Items] | |||||
Debt conversion, number of shares issued | shares | 185.19 | ||||
Common stock issuable upon conversion | shares | 625,000 | 555,556 |
Amortizable intangible assets29
Amortizable intangible assets (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization of Intangible Assets | $ 24,067 | $ 22,255 | $ 75,487 | $ 63,181 |
Amortizable intangible assets -
Amortizable intangible assets -Amounts related to intangible assets (Details) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 1,340,776 | $ 1,230,274 |
Finite-Lived Intangible Assets, Accumulated Amortization | (294,460) | (218,974) |
Finite-Lived Intangible Assets, Net | 1,046,316 | 1,011,300 |
Intangible Assets, Current | 1,046,316 | |
Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 590,649 | 514,930 |
Finite-Lived Intangible Assets, Accumulated Amortization | (84,224) | (62,242) |
Finite-Lived Intangible Assets, Net | 452,688 | |
Intangible Assets, Current | 506,425 | |
Product Certification [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 510,127 | 475,344 |
Finite-Lived Intangible Assets, Accumulated Amortization | (170,236) | (128,732) |
Finite-Lived Intangible Assets, Net | 346,612 | |
Intangible Assets, Current | 339,891 | |
Developed Technology Rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 240,000 | 240,000 |
Finite-Lived Intangible Assets, Accumulated Amortization | (40,000) | (28,000) |
Finite-Lived Intangible Assets, Net | $ 212,000 | |
Intangible Assets, Current | $ 200,000 |