Document and Entity Information
Document and Entity Information Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 10, 2020 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | TECOGEN INC. | |
Entity Central Index Key | 0001537435 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 24,850,261 | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 1,647,471 | $ 877,676 |
Accounts receivable, net | 8,885,455 | 14,569,397 |
Unbilled revenue | 5,370,422 | 5,421,811 |
Inventory, net | 7,142,799 | 6,405,229 |
Prepaid and other current assets | 517,924 | 635,034 |
Total current assets | 23,564,071 | 27,909,147 |
Property, plant and equipment, net | 2,998,014 | 3,465,948 |
Right of use assets | 1,763,795 | 2,173,951 |
Intangible assets, net | 1,441,518 | 1,593,781 |
Goodwill | 5,281,867 | 5,281,867 |
Other assets | 198,500 | 691,941 |
TOTAL ASSETS | 35,247,765 | 41,116,635 |
Current liabilities: | ||
Revolving line of credit, bank | 0 | 2,402,384 |
Note payable, current portion | 209,618 | |
Accounts payable | 3,815,875 | 5,271,756 |
Accrued expenses | 2,650,873 | 2,599,366 |
Deferred revenue | 1,328,657 | 2,635,619 |
Lease obligations, current | 519,318 | 536,443 |
Total current liabilities | 8,524,341 | 13,445,568 |
Long-term liabilities: | ||
Deferred revenue, net of current portion | 125,556 | 145,464 |
Note payable, net of current portion | 1,664,582 | |
Lease obligations, long-term | 1,344,682 | 1,637,508 |
Unfavorable contract liability, net | 2,205,301 | 2,534,818 |
Total liabilities | 13,864,462 | 17,763,358 |
Commitments and contingencies (Note 11) | ||
Tecogen Inc. shareholders’ equity: | ||
Common stock, $0.001 par value; 100,000,000 shares authorized; 24,850,261 and 24,849,261 issued and outstanding at September 30, 2020 and December 31, 2019, respectively | 24,850 | 24,849 |
Additional paid-in capital | 56,753,845 | 56,622,285 |
Accumulated deficit | (35,467,309) | (33,379,114) |
Total Tecogen Inc. stockholders’ equity | 21,311,386 | 23,268,020 |
Noncontrolling interest | 71,917 | 85,257 |
Total stockholders’ equity | 21,383,303 | 23,353,277 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 35,247,765 | $ 41,116,635 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2020 | Dec. 31, 2019 |
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 | 24,850,261 | 24,849,261 |
Common stock, shares outstanding | 24,850,261 | 24,849,261 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Total revenues | $ 7,199,707 | $ 8,670,477 | $ 22,597,465 | $ 24,714,504 |
Total cost of sales | 4,412,963 | 5,839,236 | 14,112,563 | 15,498,589 |
Gross profit | 2,786,744 | 2,831,241 | 8,484,902 | 9,215,915 |
Operating expenses | ||||
General and administrative | 2,318,789 | 2,333,887 | 7,645,729 | 7,672,550 |
Selling | 563,857 | 669,720 | 2,022,027 | 2,067,674 |
Research and development | 111,253 | 365,817 | 641,616 | 1,083,444 |
Gain on sale of assets | 0 | (1,081,049) | ||
Goodwill impairment | 0 | 3,693,198 | ||
Total operating expenses | 2,993,899 | 3,369,424 | 10,309,372 | 13,435,817 |
Loss from operations | (207,155) | (538,183) | (1,824,470) | (4,219,902) |
Other income (expense) | ||||
Interest income | (12) | 192 | 11,953 | 790 |
Interest expense | (4,845) | (18,516) | (121,084) | (63,547) |
Unrealized gain (loss) on investment securities | 0 | 0 | (98,403) | (19,680) |
Total other income (expense), net | (4,857) | (18,324) | (207,534) | (82,437) |
Loss before provision for state income taxes | (212,012) | (556,507) | (2,032,004) | (4,302,339) |
Provision for state income taxes | 9,397 | 7,881 | 27,791 | 15,667 |
Income attributable to the noncontrolling interest | (10,511) | (21,861) | (28,400) | 94,551 |
Consolidated net loss | (221,409) | (564,388) | (2,059,795) | (4,318,006) |
Net loss attributable to Tecogen Inc. | $ (231,920) | $ (586,249) | $ (2,088,195) | $ (4,223,455) |
Basic loss per share | $ (0.01) | $ (0.02) | $ (0.08) | $ (0.17) |
Weighted average shares outstanding (shares) - basic and diluted | 24,850,261 | 24,843,177 | 24,850,257 | 24,838,367 |
Products | ||||
Total revenues | $ 2,659,635 | $ 3,790,291 | $ 8,752,908 | $ 9,260,265 |
Total cost of sales | 1,593,500 | 2,515,605 | 5,298,750 | 6,005,819 |
Services | ||||
Total revenues | 4,171,377 | 4,248,584 | 12,448,671 | 13,003,529 |
Total cost of sales | 2,621,855 | 3,029,702 | 7,925,925 | 8,034,410 |
Energy production | ||||
Total revenues | 368,695 | 631,602 | 1,395,886 | 2,450,710 |
Total cost of sales | $ 197,608 | $ 293,929 | $ 887,888 | $ 1,458,360 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity Statement - USD ($) | Total | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Noncontrolling Interest | AOCI Attributable to Parent |
Beginning balance (shares) at Dec. 31, 2018 | 24,824,746 | |||||
Beginning balance at Dec. 31, 2018 | $ 24,825 | $ 56,427,928 | $ (28,670,095) | $ 255,116 | $ 28,037,774 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Exercise of stock options (shares) | 18,515 | |||||
Exercise of stock options | $ 26,417 | $ 18 | 26,399 | |||
Stock issuance costs | (1,011) | (1,011) | ||||
Stock based compensation expense | 120,604 | 120,604 | ||||
Distributions to non-controlling interest | (48,126) | (48,126) | ||||
Net income (loss) | (4,223,455) | (4,223,455) | ||||
Net loss | 94,551 | 94,551 | ||||
Net income (loss) | (4,318,006) | |||||
Ending balance (shares) at Sep. 30, 2019 | 24,843,261 | |||||
Ending balance at Sep. 30, 2019 | $ 24,843 | 56,573,920 | (32,893,550) | 112,439 | 23,817,652 | |
Beginning balance (shares) at Jun. 30, 2019 | 24,840,806 | |||||
Beginning balance at Jun. 30, 2019 | $ 24,841 | 56,525,590 | (32,307,301) | 111,291 | 24,354,421 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Exercise of stock options (shares) | 2,455 | |||||
Exercise of stock options | 5,661 | $ 2 | 5,659 | |||
Stock based compensation expense | 42,671 | 42,671 | ||||
Distributions to non-controlling interest | (20,713) | (20,713) | ||||
Net income (loss) | (586,249) | (586,249) | ||||
Net loss | (21,861) | (21,861) | ||||
Net income (loss) | (564,388) | |||||
Ending balance (shares) at Sep. 30, 2019 | 24,843,261 | |||||
Ending balance at Sep. 30, 2019 | $ 24,843 | 56,573,920 | (32,893,550) | 112,439 | 23,817,652 | |
Beginning balance (shares) at Dec. 31, 2019 | 24,849,261 | |||||
Beginning balance at Dec. 31, 2019 | 23,353,277 | $ 24,849 | 56,622,285 | (33,379,114) | 85,257 | 23,353,277 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Exercise of stock options (shares) | 1,000 | |||||
Exercise of stock options | 1,200 | $ 1 | 1,199 | |||
Stock issuance costs | (1,951) | (1,951) | ||||
Stock based compensation expense | 132,312 | 132,312 | ||||
Distributions to non-controlling interest | (41,740) | (41,740) | ||||
Net income (loss) | (2,088,195) | (2,088,195) | ||||
Net loss | (28,400) | (28,400) | ||||
Net income (loss) | (2,059,795) | |||||
Ending balance (shares) at Sep. 30, 2020 | 24,850,261 | |||||
Ending balance at Sep. 30, 2020 | 21,383,303 | $ 24,850 | 56,753,845 | (35,467,309) | 71,917 | 21,383,303 |
Beginning balance (shares) at Jun. 30, 2020 | 24,850,261 | |||||
Beginning balance at Jun. 30, 2020 | $ 24,850 | 56,704,412 | (35,235,389) | 80,076 | 21,573,949 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock issuance costs | (1,149) | (1,149) | ||||
Stock based compensation expense | 50,582 | 50,582 | ||||
Distributions to non-controlling interest | (18,670) | (18,670) | ||||
Net income (loss) | (231,920) | (231,920) | ||||
Net loss | (10,511) | (10,511) | ||||
Net income (loss) | (221,409) | |||||
Ending balance (shares) at Sep. 30, 2020 | 24,850,261 | |||||
Ending balance at Sep. 30, 2020 | $ 21,383,303 | $ 24,850 | $ 56,753,845 | $ (35,467,309) | $ 71,917 | $ 21,383,303 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Consolidated net loss | $ (2,059,795) | $ (4,318,006) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation, accretion and amortization, net | 293,941 | 362,848 |
Stock-based compensation | 132,312 | 120,604 |
Goodwill impairment | 0 | 3,693,198 |
Gain on sale of assets | 0 | (1,081,049) |
Provision for losses on accounts receivable | 29,849 | |
Unrealized loss on investment securities | 98,403 | 19,680 |
Abandonment of intangible assets | 179,944 | 0 |
Non-cash interest expense | 51,190 | 36,252 |
Changes in operating assets and liabilities, net of effects of acquisitions | ||
Accounts receivable | 5,683,941 | 1,097,220 |
Unbilled revenue | 51,389 | (763,604) |
Inventory | (737,570) | (165,375) |
Due from related party | 0 | 9,405 |
Prepaid expenses and other current assets | 117,109 | (19,586) |
Other non-current assets | 692,484 | (235,695) |
Increase (decrease) in: | ||
Accounts payable | (1,455,881) | (665,587) |
Accrued expenses and other current liabilities | 145,848 | (203,262) |
Deferred revenue | (1,619,696) | (1,142,575) |
Net cash provided by (used in) operating activities | 1,573,619 | (3,225,683) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property and equipment | (59,952) | (73,642) |
Proceeds from sale of assets | 0 | 5,000,000 |
Purchases of intangible assets | (123,252) | (64,656) |
Unrealized loss on investment securities | 0 | 0 |
Payment of stock issuance costs | (1,951) | (1,011) |
Distributions to noncontrolling interest | (41,740) | (48,127) |
Net cash provided by (used in) investing activities | (226,895) | 4,812,564 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Payments on revolving line of credit, net | 2,452,329 | 1,105,111 |
Proceeds from note payable | 1,874,200 | |
Proceeds from the exercise of stock options | 1,200 | 26,418 |
Net cash used in financing activities | (576,929) | (1,078,693) |
Change in cash and cash equivalents | 769,795 | 508,188 |
Cash and cash equivalents, beginning of the period | 877,676 | 272,552 |
Cash and cash equivalents, end of the period | 1,647,471 | 780,740 |
Non-cash investing and financing activities: | ||
Cash paid for interest | 62,007 | 24,729 |
Cash paid for taxes | $ 27,791 | $ 29,205 |
Description of business and bas
Description of business and basis of presentation | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Description of business and basis of presentation | Description of Business and Basis of Presentation Description of Business Tecogen Inc., ("Tecogen," "Company,", "we," "our," or "us"), designs, manufactures, markets, and maintains high efficiency, ultra-clean cogeneration products including natural gas engine driven combined heat and power, air conditioning systems, and water heaters for residential, commercial, recreational and industrial use. We provide cost efficient, environmentally friendly and reliable products for distributed power generation that, through patented technology, nearly eliminate criteria pollutants and significantly reduce a customer’s carbon footprint. Tecogen products are expected to run on Renewable Natural Gas (RNG) as it is introduced into the US gas pipeline infrastructure. Tecogen’s cogeneration systems (also known as combined heat and power or “CHP”) are efficient because they drive electric generators or compressors, which reduce the amount of electricity purchased from the utility while recovering the engine’s waste heat for water heating, space heating, and/or air conditioning at the customer’s building. All of our products are standardized, modular, CHP products that reduce energy costs, carbon emissions, and dependence on the electric grid. Tecogen’s products allow customers to produce power on-site in parallel with the electric grid or stand alone when no utility grid is available via inverter-based black-start capability. Because our CHP systems also produce clean, usable heat energy, they provide economic advantages to customers who can benefit from the use of hot water, chilled water, air conditioning and heating. The majority of the Company’s customers are located in regions with the highest utility rates, typically California, the Midwest and the Northeast. On May 18, 2017, the Company acquired 100% of the outstanding common stock of American DG Energy Inc. in a stock-for-stock merger whereupon American DG Energy became a wholly-owned subsidiary of the Company. The Company voluntarily delisted its shares of common stock from Nasdaq effective June 19, 2020, and, since that date, the Company's shares of common stock have been quoted on the OTC Markets Group Inc.’s OTCQX Best Market. The Company’s shares continue to be quoted under the ticker symbol “TGEN.” Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020 . The condensed consolidated balance sheet at December 31, 2019 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in Tecogen's Annual Report on Form 10-K for the year ended December 31, 2019 . The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and entities in which it has a controlling financial interest. Those entities include the Company's wholly-owned subsidiaries American DG Energy Inc., TTcogen LLC (liquidated and dissolved in August 2020), and a joint venture, American DG New York, LLC, in which American DG Energy Inc. holds a 51% interest. Investments in partnerships and companies in which the Company does not have a controlling financial interest but where we have significant influence are accounted for under the equity method. Any intercompany transactions have been eliminated in consolidation. The Company’s operations are comprised of two business segments. Our Products and Services segment designs, manufactures and sells industrial and commercial cogeneration systems as described above. Our Energy Production segment sells energy in the form of electricity, heat, hot water and cooling to our customers under long-term sales agreements. Reclassification Certain prior period amounts have been reclassified to conform with current year presentation. 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. Income Taxes The provisions for income taxes in the accompanying unaudited consolidated statements of operations differ from that which would be expected by applying the federal statutory tax rate primarily due to losses for which no benefit is recognized. |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2020 | |
Revenue Recognition [Abstract] | |
Revenue | Revenue Revenue is recognized when performance obligations under the terms of a contract with our customer are satisfied; generally this occurs with the transfer of control of our products, services and energy production. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services or energy to customers. Shipping and handling fees billed to customers in a sales transaction are recorded in revenue and shipping and handling costs incurred are recorded in cost of sales. The Company has elected to exclude from revenue any value added sales and other taxes which it collects concurrent with revenue-producing activities. These accounting policy elections are consistent with the manner in which the Company historically recorded shipping and handling fees and taxes. Incremental costs incurred by us in obtaining a contract with a customer are negligible, if any, and are expensed ratably in proportion to the related revenue recognized. Disaggregated Revenue In general, the Company's business segmentation is aligned according to the nature and economic characteristics of its products and customer relationships and provides meaningful disaggregation of each business segment's results of operations. The following table further disaggregates our revenue by major source by segment for the three and nine months ended September 30, 2020 and 2019 . Three Months Ended September 30, 2020 Products and Services Energy Production Total Products $ 2,659,635 $ — $ 2,659,635 Installation services 1,559,473 — 1,559,473 Maintenance services 2,611,904 — 2,611,904 Energy production — 368,695 368,695 Total revenue $ 6,831,012 $ 368,695 $ 7,199,707 Nine Months Ended September 30, 2020 Products and Services Energy Production Total Products $ 8,752,908 $ — $ 8,752,908 Installation services 4,915,599 — 4,915,599 Maintenance services 7,533,072 — 7,533,072 Energy production — 1,395,886 1,395,886 Total revenue $ 21,201,579 $ 1,395,886 $ 22,597,465 Three Months Ended September 30, 2019 Products and Services Energy Production Total Products $ 3,790,291 $ — $ 3,790,291 Installation services 1,794,649 — 1,794,649 Maintenance services 2,453,935 — 2,453,935 Energy production — 631,602 631,602 Total revenue $ 8,038,875 $ 631,602 $ 8,670,477 Nine Months Ended September 30, 2019 Products and Services Energy Production Total Products $ 9,260,265 $ — $ 9,260,265 Installation services 5,641,540 — 5,641,540 Maintenance services 7,361,989 — 7,361,989 Energy production 2,450,710 2,450,710 Total revenue $ 22,263,794 $ 2,450,710 $ 24,714,504 Product and Services Segment Products. We transfer control and generally recognize a sale when we ship a product from our manufacturing facility at which point a customer takes ownership of the product. Payment terms on product sales are generally 30 days from date of initial shipment. We recognize revenue in certain circumstances before delivery to the customer has occurred (commonly referred to as bill and hold transactions). We recognize revenue related to such transactions once, among other things, the customer has made a written fixed commitment to purchase the product(s) under normal billing and credit terms, the customer has requested the product(s) be held for future delivery as scheduled and designated by them, risk of ownership has been assumed by the customer, and the product(s) are tagged as sold and segregated for storage awaiting further direction from the customer. Due to the infrequent nature and duration of bill and hold arrangements, the value associated with custodial storage services is deemed immaterial in the context of the contract and in total, and accordingly, none of the transaction price is allocated to such service. Depending on the product and terms of the arrangement, we may defer the recognition of a portion of the transaction price received because we have to satisfy a future obligation (e.g., product start-up service). Amounts allocated to product start-up services are recognized as revenue when the start-up service has been completed. We use an observable selling price to determine standalone selling prices where available and either a combination of an adjusted market assessment approach, an expected cost plus a margin approach, and/or a residual approach to determine the standalone selling prices for separate performance obligations as a basis for allocating contract consideration when an observable selling price is not available. Amounts received but not recognized pending completion of performance are recognized as contract liabilities and are recorded as deferred revenue along with deposits by customers. Installation Services. We provide both complete turnkey installation services and what we refer to as light installation services. Complete turnkey installation services typically include all necessary engineering and design, labor, subcontract labor and service, and ancillary products and parts necessary to install a cogeneration unit including integration into the customers’ existing electrical and mechanical systems. Light installation services typically include some engineering and design as well as certain ancillary products and parts necessary for the customers’ installation of a cogeneration unit. Under light installation contracts, revenue related to ancillary products and parts is recognized when we transfer control of such items to the customer, generally when we ship them from our manufacturing facility, with revenue related to engineering and design services being recognized at the point where the customer can benefit from the service, generally as completed. Generally billings under light installation contracts are made when shipped and/or completed, with payment terms generally being 30 days. Under complete turnkey installation service contracts, revenue is recognized over time using the percentage-of-completion method determined on a cost to cost basis. Our performance obligation under such contracts is satisfied progressively over time as enhancements are made to customer owned and controlled properties. We measure progress towards satisfaction of the performance obligation based on an input method based on cost which we believe is the most faithful depiction of the transfer of products and services to the customer under these contracts. When the financial metrics of a contract indicate a loss, our policy is to record the entire expected loss as soon as it is known. Contract costs and profit recognized to date under the percentage-of-completion method in excess of billings are recognized as contract assets and are recorded as unbilled revenue. Billings in excess of contract costs and profit are recognized as contract liabilities and are recorded as deferred revenue. Generally billings under complete turnkey installation contracts are made when contractually determined milestones of progress have been achieved, with payment terms generally being 30 days. Maintenance Services. Maintenance services are provided under either long-term maintenance contracts or one-time maintenance contracts. Revenue under one-time maintenance contracts is recognized when the maintenance service is completed. Revenue under long-term maintenance contracts is recognized either ratably over the term of the contract where the contract price is fixed or when the periodic maintenance activities are completed where the invoiced cost to the customer is based on run hours or kilowatts produced in a given period. We use an output method to measure progress towards completion of our performance obligation which results in the recognition of revenue on the basis of a direct measurement of the value to the customer of the services transferred to date relative to the remaining services promised under the contract. We use the practical expedient at ASC 606-10-55-18 of recognizing revenue in an amount equal to the amount we have the right to invoice the customer under the contract. Energy Production Segment Energy Production. Revenue from energy contracts is recognized when electricity, heat, hot and/or chilled water is produced by Company owned on-site cogeneration systems. Each month we bill the customer and recognize revenue for the various forms of energy delivered, based on meter readings which capture the quantity of the various forms of energy delivered in a given month, under a contractually defined formula which takes into account the current month's cost of energy from the local power utility. As the various forms of energy delivered by us under energy production contracts are simultaneously delivered and consumed by the customer, our performance obligation under these contracts is considered to be satisfied over time. We use an output method to measure progress towards completion of our performance obligation which results in the recognition of revenue on the basis of a direct measurement of the value to the customer of the services transferred to date relative to the remaining services promised under the contract. We use the practical expedient at ASC 606-10-55-18 of recognizing revenue in an amount equal to the amount that we have the right to invoice the customer under the contract. Payment terms on invoices under these contracts are generally 30 days. Contract Balances The timing of revenue recognition, billings and cash collections result in billed accounts receivable, unbilled revenue (contract assets) and deferred revenue, consisting of customer deposits and billings in excess of revenue recognized (contract liabilities) on the Consolidated Condensed Balance Sheets. Revenue recognized during the quarter ended September 30, 2020 that was included in unbilled revenue at the beginning of the period was approximately $2.2 million . Approximately $1.8 million was billed in this period that had been recognized as revenue in previous periods. Revenue recognized during the quarter ended September 30, 2020 that was included in deferred revenue at the beginning of the period was approximately $2.6 million . Remaining Performance Obligations Remaining performance obligations related to ASC 606 represent the aggregate transaction price allocated to performance obligations with an original contract term greater than one year, excluding certain maintenance contracts and all energy production contracts where a direct measurement of the value to the customer is used as a method of measuring progress towards completion of our performance obligation. Exclusion of these remaining performance obligations is due in part to the inability to quantify values based on unknown future levels of delivery and in some cases rates used to bill customers. Remaining performance obligations therefore consist of unsatisfied or partially satisfied performance obligations related to fixed price maintenance contracts and installation contracts. As of September 30, 2020 , the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $8.3 million . The Company expects to recognize revenue of approximately 99% of the remaining performance obligations over the next 24 months, 98% recognized in the first 12 months and 1% recognized over the subsequent 12 months, and the remainder recognized thereafter. |
Loss Per Common Share
Loss Per Common Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Loss Per Common Share | Loss Per Common Share Basic and diluted loss per share for the three and nine months ended September 30, 2020 and 2019 , respectively, were as follows: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Net loss attributable to stockholders $ (231,920 ) $ (586,249 ) $ (2,088,195 ) $ (4,223,455 ) Weighted average shares outstanding - Basic and diluted 24,850,261 24,843,177 24,850,257 24,838,367 Basic loss per share $ (0.01 ) $ (0.02 ) $ (0.08 ) $ (0.17 ) Anti-dilutive shares underlying stock options outstanding 2,536,664 85,272 2,555,097 188,272 |
Property, Plant and Equipment
Property, Plant and Equipment | 9 Months Ended |
Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment at September 30, 2020 and December 31, 2019 consisted of the following: Estimated Useful September 30, 2020 December 31, 2019 Energy systems 1 - 15 years $ 4,372,638 $ 4,372,638 Machinery and equipment 5 - 7 years 1,509,208 1,462,208 Furniture and fixtures 5 years 193,698 193,698 Computer software 3 - 5 years 192,865 192,865 Leasehold improvements * 450,792 450,792 6,719,201 6,672,201 Less - accumulated depreciation and amortization (3,721,187 ) (3,206,253 ) $ 2,998,014 $ 3,465,948 * Lesser of estimated useful life of asset or lease term Depreciation and amortization expense on property and equipment for the three and nine months ended September 30, 2020 and 2019 was $175,869 and $527,886 and $180,662 and $686,880 , respectively. In March 2019, the Company sold certain energy systems related assets and related energy production contracts. See Note 6. Sale of Energy Producing Assets and Goodwill Impairment for further discussion. |
Intangible Assets and Liabiliti
Intangible Assets and Liabilities Other Than Goodwill | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Liabilities Other Than Goodwill | Intangible Assets and Liabilities Other Than Goodwill As of September 30, 2020 and December 31, 2019 the Company had the following amounts related to intangible assets and liabilities other than goodwill: September 30, 2020 December 31, 2019 Intangible assets Cost Accumulated Amortization Total Cost Accumulated Amortization Total Product certifications $ 726,159 $ (440,592 ) $ 285,567 $ 726,159 $ (399,906 ) $ 326,253 Patents 880,416 (218,506 ) 661,910 1,017,108 (206,499 ) 810,609 Developed technology 240,000 (120,000 ) 120,000 240,000 (108,000 ) 132,000 Trademarks 26,896 — 26,896 26,896 — 26,896 In Process R&D 263,936 — 263,936 263,936 — 263,936 Favorable contract asset 354,858 (292,004 ) 62,854 274,858 (263,901 ) 10,957 TTcogen intangible assets 29,607 (9,252 ) 20,355 29,607 (6,477 ) 23,130 $ 2,521,872 $ (1,080,354 ) $ 1,441,518 $ 2,578,564 $ (984,783 ) $ 1,593,781 Intangible liability Unfavorable contract liability $ 4,689,025 $ (2,483,724 ) $ 2,205,301 $ 4,689,025 $ (2,154,207 ) $ 2,534,818 The aggregate amortization expense related to intangible assets and liabilities exclusive of contract related intangibles for the three and nine months ended September 30, 2020 and 2019 was $21,564 and $64,692 and $22,951 and $70,699 , respectively. The net credit to cost of sales related to the amortization of contract related intangible assets and liabilities for the three and nine months ended September 30, 2020 and 2019 was $98,053 and $301,414 and $107,998 and $394,731 , respectively. During the first quarter of 2020, the Company abandoned certain patent applications amounting to a $179,944 abandonment charge for the period. Favorable/Unfavorable Contract Assets and Liabilities The favorable contract asset and unfavorable contract liability in the foregoing table represent the estimated fair value of American DG Energy's customer contracts (both positive for favorable contracts and negative for unfavorable contracts) which were acquired by the Company in May 2017. Amortization of intangibles including contract related amounts is calculated using the straight-line method over the remaining useful life or contract term. Aggregate future amortization over the next five years is estimated to be as follows: Year 1 $ (160,086 ) Year 2 (197,999 ) Year 3 (154,182 ) Year 4 (117,947 ) Year 5 (64,340 ) |
Sale of Energy Producing Assets
Sale of Energy Producing Assets and Goodwill Impairment | 9 Months Ended |
Sep. 30, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Sale of Energy Producing Assets and Goodwill Impairment | Sale of Energy Producing Assets and Goodwill Impairment During the first quarter of 2019, the Company recognized two individual sales of energy producing assets, for a total of eight power purchase agreements, including the associated energy production contracts for total consideration of $7 million , which resulted in a combined gain on sale of assets of $1,081,049 included in the September 30, 2019 accompanying statement of operations. In connection with the sales, the Company entered into agreements with the purchaser to maintain and operate the assets over the remaining periods of the associated energy production contracts (through August 2033 and January 2034, respectively) in exchange for monthly fees for both maintenance and operation. These agreements contain provisions whereby the Company has guaranteed to the purchaser a minimum level or threshold of cash flows from the associated energy production contracts. Actual results are compared to the minimum threshold bi-annually, with the Company making up any shortfall. To the extent actual results are in excess of the minimum threshold, the Company is entitled to forty percent of such excess under the agreements. As of September 30, 2020 , the Company had a $40,425 receivable relating to this arrangement due to timing of payments from customers. The foregoing agreements also contain provisions whereby the Company has agreed to make whole the purchaser in the event the counterparty to the energy production contract(s) defaults on or otherwise terminates before the stated expiration of the energy production contract. If the Company is required to make whole the purchaser under such provisions, the Company would be entitled to seek recovery from the counterparty to the energy production contract(s) under a similar provision contained in those contracts in respect of early termination. The Company is also responsible under the agreements for site decommissioning costs, if any, in excess of certain threshold amounts by site. Decommissioning of site assets is performed when, if and as requested by the counterparty to the energy production contract upon termination of the energy production contract. The combined gain on sale of these assets was determined after deducting from the gross proceeds the remaining net book value of the assets sold and an estimate of the remaining costs to complete installation of certain of the site assets as well as deducting an estimate of amounts which the Company believes it will be required to pay under the minimum cash flow guarantee described above. In determining the combined gain on the sale of these assets, no amount of goodwill assigned to the energy production segment and reporting unit was included as individual sites and related site energy producing assets are not considered businesses. The aggregate of the assets sold represents a significant portion of the energy production segment and reporting unit’s assets and cash flows which is the basis for determination of the fair value of the energy production reporting unit as used for goodwill impairment determinations. Accordingly, the sale of these assets caused the Company to assess the impact of the sales on the valuation of remaining goodwill assigned to the energy production reporting unit. That assessment included a determination of whether the remaining carrying value of the energy production reporting unit including goodwill exceeded its fair value. Following a goodwill impairment charge in 2018 which reduced the carrying value of the energy production reporting unit including goodwill to fair value based on discounted cash flows, exclusion of the discounted cash flows related to the assets sold resulted in impairment of the remaining goodwill assigned to the energy production reporting unit in an amount proportionate to the discounted cash flows related to the assets sold to the total discounted cash flows of the energy production reporting unit before the sales. The goodwill impairment as a result of the sales and recognized in the first quarter of 2019 totaled approximately $3.7 million , reducing the remaining carrying value of the energy production reporting unit, including goodwill to the discounted cash flow of the remaining sites or fair value. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Leases | Leases Our leases principally consist of operating leases related to our corporate office, field offices, and our research, manufacturing and storage facilities. Our lease terms do not include options to extend or terminate the lease until we are reasonably certain that we will exercise that option. At inception, the Company determines if an arrangement contains a lease and whether that lease meets the classification criteria of a finance or operating lease. Some of the Company’s lease arrangements contain lease components (e.g. minimum rent payments) and non-lease components (e.g. maintenance, labor charges, etc.). The Company generally accounts for each component separately based on the estimated standalone price of each component. Operating leases are included in Right-of-use assets, Lease obligations, current and Lease obligations, long term on the Condensed Consolidated Balance Sheets. These assets and liabilities are recognized at the commencement date based on the present value of remaining lease payments over the lease term using an incremental borrowing rate consistent with the lease terms or implicit rates, when readily determinable. Short-term operating leases, which have an initial term of 12 months or less, are not recorded on the balance sheet. Lease expense for operating leases, which principally consist of fixed payments for base rent, is recognized on a straight-line basis over the lease term. Lease expense for the three and nine months ended September 30, 2020 and 2019 was $179,042 and $565,180 and $196,476 and $568,847 , respectively. Supplemental information related to leases for the nine months ended September 30, 2020 was as follows: Cash paid for amounts included in the measurement of operating lease liabilities $ 486,907 Weighted-average remaining lease term - operating leases 3.5 years Weighted-average discount rate - operating leases 6 % Future minimum lease commitments under non-cancelable operating leases as of September 30, 2020 were as follows: Operating Leases Q4 2020 $ 163,287 2021 594,312 2022 576,793 2023 585,309 2024 153,502 Total lease payments 2,106,940 Less: imputed interest 242,940 Total $ 1,864,000 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Stock-Based Compensation The Company adopted a 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 Amended Plan to 3,838,750 as of September 30, 2020 . 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, 2020 was 602,350 . Stock option activity for the nine months ended September 30, 2020 was as follows: Common Stock Options Number of Options Exercise Share Weighted Price Weighted Life Aggregate Value Outstanding, December 31, 2019 1,352,874 $0.79-$10.33 $ 3.57 5.30 years $ 95,381 Granted 1,440,000 $0.71-$0.78 $ 0.72 Exercised (1,000 ) $1.20 $ 1.20 Canceled and forfeited (136,170 ) $1.20-$4.50 $ 2.41 Outstanding, September 30, 2020 2,655,704 $0.71-$10.33 $ 2.09 7.48 years $ 278,921 Exercisable, September 30, 2020 969,287 $ 3.73 $ 3,181 Vested and expected to vest, September 30, 2020 2,402,741 $ 2.18 $ 274,740 Consolidated stock-based compensation expense for the three and nine months ended September 30, 2020 and 2019 was $50,482 and $42,671 , and $132,312 and $120,604 , respectively. No tax benefit was recognized related to the stock-based compensation recorded during the period. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The fair value topic of the FASB Accounting Standards Codification defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The accounting guidance also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs, where available, and minimize the use of unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value: Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities. The Company currently does not have any Level 1 financial assets or liabilities. Level 2 - Observable inputs other than quoted prices included in Level 1. Level 2 inputs include quoted prices for identical assets or liabilities in non-active markets, quoted prices for similar assets or liabilities in active markets and inputs other than quoted prices that are observable for substantially the full term of the asset or liability. The Company has Level 2 financial assets and liabilities as provided below. Level 3 - Unobservable inputs reflecting management’s own assumptions about the input used in pricing the asset or liability. The Company does not currently have any Level 3 financial assets or liabilities. The following table presents the asset reported in "other assets" in the consolidated balance sheet measured at its fair value on a recurring basis as of September 30, 2020 by level within the fair value hierarchy. September 30, 2020 Quoted prices in active markets for identical assets Significant other observable inputs Significant unobservable inputs Total Level 1 Level 2 Level 3 Recurring fair value measurements Marketable equity securities EuroSite Power Inc. $ 118,084 $ — $ 118,084 $ — Total recurring fair value measurements $ 118,084 $ — $ 118,084 $ — The Company utilizes a Level 2 category fair value measurement to value its investment in EuroSite Power as a marketable equity security at period end. That measurement is equal to the quoted market closing price at period end. Since this security is not actively traded, the Company classifies it as Level 2. The following table summarizes changes in Level 2 assets which are comprised of marketable equity securities for the period: Fair value at December 31, 2019 $ 216,487 Unrealized loss included in net income for the nine months ended September 30, 2020 (98,403 ) Fair value at September 30, 2020 $ 118,084 |
Note Payable and Revolving Line
Note Payable and Revolving Line of Credit, Bank (Notes) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Note Payable and Revolving Line of Credit, Bank | Note Payable and Revolving Line of Credit, Bank On May 4, 2018 ("Closing Date"), the Company, and its wholly owned subsidiaries, American DG Energy Inc. and TTcogen LLC (collectively, the "Borrowers"), entered into a Credit Agreement with Webster Business Credit Corporation (the "Lender") that matures in May 2021 and provides Borrowers a line of credit of up to $10 million on a revolving and secured basis, with availability based on certain accounts receivables, raw materials, and finished goods. Borrowings under the Credit Agreement bear interest at a rate equal to, at the Borrower's option, either (1) One Month LIBOR, plus 3.00% , or (2) Lender’s Base Rate, plus 1.5% . Lender’s Base Rate is defined as the highest of (a) the Federal Funds rate plus 0.5% , (b) Lender’s Prime Rate as adjusted by Lender from time to time, and (c) One Month LIBOR, plus 2.75% . On May 11, 2020 the Company and Webster Business Credit Corporation ("Webster") agreed to terminate the Credit Agreement dated May 4, 2018 by and between Webster and the Company and its wholly owned subsidiaries, together with related agreements, including a Revolving Note, Security Agreement, Blocked Account Agreement, and Master Letter of Credit Agreement. Tecogen paid an early termination fee in the amount of $25,000 in connection with the termination of the Credit Agreement, and continues to use depository and cash management services provided by Webster Bank. The $145,011 of costs incurred in connection with the issuance of the revolving credit facility were capitalized and were being amortized to interest expense on a straight-line basis over three years based on the contractual term of the Agreement. Upon termination of the Credit Agreement, the unamortized balance of debt issuance cost of $37,861 was expensed in the accompanying Condensed Consolidated Statement of Operations. On April 17, 2020, the Company obtained an unsecured loan through Webster Bank, N.A. in the amount of $1,874,200 in connection with the Paycheck Protection Program pursuant to the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) administered by the United States Small Business Administration (the "SBA"). The loan is guaranteed by the SBA. Interest on the loan balance is at the rate of 1% per year, and as a result of the enactment of the Paycheck Protection Program Flexibility Act of 2020 (the “PPP Flexibility Act”), repayment of the loan balance could be deferred until August 2021 , at which time the balance would be payable in 18 monthly installments of $106,356 with the final payment due in January 2023 if not forgiven in accordance with the Cares Act and the terms of the Promissory Note executed by the Company in connection with the loan. The PPP loan may be prepaid at any time without penalty. The loan agreement and promissory note include customary provisions for a loan of this type, including prohibitions on our payment of dividends or repurchase of shares of our common stock while the PPP Loan remains outstanding. The loan agreement and promissory note also defines events of default to include, among other things, payment defaults, breaches of provisions of the loan agreement or the promissory note and cross-defaults on other loans, if applicable. In June 2020, the PPP Flexibility Act postponed the commencement of repayment obligations for Cares Act loans to the date on which the amount of forgiveness as determined under the Cares Act is remitted to the lender, but not later than 10 months after the last day of the applicable Covered Period (the period during which costs eligible for forgiveness may be paid or accrued). The Company has used 100% of the loan proceeds for payroll, rent, and utilities (which are costs expected to be eligible for loan forgiveness under the CARES Act and the Promissory Note) during the 24 week Covered Period following the disbursement of the loan as permitted under the PPP Flexibility Act in order to maximize the amount forgivable under the loan. Whether our application for forgiveness will be granted and in what amount is subject to an application to, and approval by, the SBA and may also be subject to further requirements in any regulations and guidelines the SBA may adopt. On November 10, 2020, we submitted a loan forgiveness application to Webster seeking forgiveness for the full amount of the PPP loan. To the extent that there is a loan balance after the application of permissible forgiveness, the Company will seek to extend the loan maturity for the remaining balance to the maximum maturity of five years as permitted under the Cares Act as amended by the PPP Flexibility Act. |
Commitments and contingencies
Commitments and contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Commitments and Contingencies The Company guarantees certain obligations of a former subsidiary of American DG Energy, EuroSite Power Inc. These guarantees include a payment performance guarantee in respect of collateralized equipment financing loans, with a remaining principal amount outstanding subject to the guarantee at September 30, 2020 of $78,560 due ratably in equal installments through September 2021, and certain guarantees of performance in respect of certain customer contracts. Based on current conditions, the Company does not believe there to be any amounts probable of payment by the Company under any of the guarantees and has estimated the value associated with the non-contingent aspect of the guarantees is approximately $7,000 which is recorded as a liability in the accompanying financial statements. |
Segments
Segments | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Segments | Segments As of September 30, 2020 , the Company was organized into two operating segments through which senior management evaluates the Company’s business. These segments, as described in more detail in Note 1, are organized around the products and services provided to customers and represent the Company’s reportable segments. The following table presents information by reportable segment for the three and nine months ended September 30, 2020 and 2019 : Products and Services Energy Production Corporate, other and elimination (1) Total Three months ended September 30, 2020 Revenue - external customers $ 6,831,012 $ 368,695 $ — $ 7,199,707 Intersegment revenue 77,514 — (77,514 ) — Total revenue $ 6,908,526 $ 368,695 $ (77,514 ) $ 7,199,707 Gross profit $ 2,615,657 $ 171,087 $ — $ 2,786,744 Identifiable assets $ 21,031,221 $ 2,877,859 $ 11,338,685 $ 35,247,765 Three months ended September 30, 2019 Revenue - external customers $ 8,038,875 $ 631,602 $ — $ 8,670,477 Intersegment revenue 113,008 — (113,008 ) — Total revenue $ 8,151,883 $ 631,602 $ (113,008 ) $ 8,670,477 Gross profit $ 2,493,568 $ 337,673 $ — $ 2,831,241 Identifiable assets $ 25,166,483 $ 3,375,306 $ 11,412,533 $ 39,954,322 Nine months ended September 30, 2020 Revenue - external customers $ 21,201,579 $ 1,395,886 $ — $ 22,597,465 Intersegment revenue 309,224 — (309,224 ) — Total revenue $ 21,510,803 $ 1,395,886 $ (309,224 ) $ 22,597,465 Gross profit $ 7,976,904 $ 507,998 $ — $ 8,484,902 Identifiable assets $ 21,031,221 $ 2,877,859 $ 11,338,685 $ 35,247,765 Nine months ended September 30, 2019 Revenue - external customers $ 22,263,794 $ 2,450,710 $ — $ 24,714,504 Intersegment revenue 470,169 — (470,169 ) — Total revenue $ 22,733,963 $ 2,450,710 $ (470,169 ) $ 24,714,504 Gross profit $ 8,223,565 $ 992,350 $ — $ 9,215,915 Identifiable assets $ 25,166,483 $ 3,375,306 $ 11,412,533 $ 39,954,322 (1) Corporate, intersegment revenue, other and elimination includes various corporate assets. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events The Company has evaluated subsequent events through the date of this filing and, except as described below, has determined that no material subsequent events occurred that would require recognition in the consolidated financial statements or disclosure in the notes thereto. On November 10, 2020, we submitted a loan forgiveness application to Webster Bank seeking forgiveness for the full amount of the PPP loan. |
Description of business and b_2
Description of business and basis of presentation (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
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 generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020 . The condensed consolidated balance sheet at December 31, 2019 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in Tecogen's Annual Report on Form 10-K for the year ended December 31, 2019 . The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and entities in which it has a controlling financial interest. Those entities include the Company's wholly-owned subsidiaries American DG Energy Inc., TTcogen LLC (liquidated and dissolved in August 2020), and a joint venture, American DG New York, LLC, in which American DG Energy Inc. holds a 51% interest. Investments in partnerships and companies in which the Company does not have a controlling financial interest but where we have significant influence are accounted for under the equity method. Any intercompany transactions have been eliminated in consolidation. The Company’s operations are comprised of two business segments. Our Products and Services segment designs, manufactures and sells industrial and commercial cogeneration systems as described above. Our Energy Production segment sells energy in the form of electricity, heat, hot water and cooling to our customers under long-term sales agreements. |
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 |
Income Taxes | Income Taxes The provisions for income taxes in the accompanying unaudited consolidated statements of operations differ from that which would be expected by applying the federal statutory tax rate primarily due to losses for which no benefit is recognized. |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue Recognition [Abstract] | |
Disaggregation of Revenue | The following table further disaggregates our revenue by major source by segment for the three and nine months ended September 30, 2020 and 2019 . Three Months Ended September 30, 2020 Products and Services Energy Production Total Products $ 2,659,635 $ — $ 2,659,635 Installation services 1,559,473 — 1,559,473 Maintenance services 2,611,904 — 2,611,904 Energy production — 368,695 368,695 Total revenue $ 6,831,012 $ 368,695 $ 7,199,707 Nine Months Ended September 30, 2020 Products and Services Energy Production Total Products $ 8,752,908 $ — $ 8,752,908 Installation services 4,915,599 — 4,915,599 Maintenance services 7,533,072 — 7,533,072 Energy production — 1,395,886 1,395,886 Total revenue $ 21,201,579 $ 1,395,886 $ 22,597,465 Three Months Ended September 30, 2019 Products and Services Energy Production Total Products $ 3,790,291 $ — $ 3,790,291 Installation services 1,794,649 — 1,794,649 Maintenance services 2,453,935 — 2,453,935 Energy production — 631,602 631,602 Total revenue $ 8,038,875 $ 631,602 $ 8,670,477 Nine Months Ended September 30, 2019 Products and Services Energy Production Total Products $ 9,260,265 $ — $ 9,260,265 Installation services 5,641,540 — 5,641,540 Maintenance services 7,361,989 — 7,361,989 Energy production 2,450,710 2,450,710 Total revenue $ 22,263,794 $ 2,450,710 $ 24,714,504 |
Loss Per Common Share (Tables)
Loss Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Income (Loss) Per Common Share, Basic and Diluted | Basic and diluted loss per share for the three and nine months ended September 30, 2020 and 2019 , respectively, were as follows: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Net loss attributable to stockholders $ (231,920 ) $ (586,249 ) $ (2,088,195 ) $ (4,223,455 ) Weighted average shares outstanding - Basic and diluted 24,850,261 24,843,177 24,850,257 24,838,367 Basic loss per share $ (0.01 ) $ (0.02 ) $ (0.08 ) $ (0.17 ) Anti-dilutive shares underlying stock options outstanding 2,536,664 85,272 2,555,097 188,272 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property, Plant and Equipment | Property, plant and equipment at September 30, 2020 and December 31, 2019 consisted of the following: Estimated Useful September 30, 2020 December 31, 2019 Energy systems 1 - 15 years $ 4,372,638 $ 4,372,638 Machinery and equipment 5 - 7 years 1,509,208 1,462,208 Furniture and fixtures 5 years 193,698 193,698 Computer software 3 - 5 years 192,865 192,865 Leasehold improvements * 450,792 450,792 6,719,201 6,672,201 Less - accumulated depreciation and amortization (3,721,187 ) (3,206,253 ) $ 2,998,014 $ 3,465,948 * Lesser of estimated useful life of asset or lease term |
Intangible Assets and Liabili_2
Intangible Assets and Liabilities Other Than Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | As of September 30, 2020 and December 31, 2019 the Company had the following amounts related to intangible assets and liabilities other than goodwill: September 30, 2020 December 31, 2019 Intangible assets Cost Accumulated Amortization Total Cost Accumulated Amortization Total Product certifications $ 726,159 $ (440,592 ) $ 285,567 $ 726,159 $ (399,906 ) $ 326,253 Patents 880,416 (218,506 ) 661,910 1,017,108 (206,499 ) 810,609 Developed technology 240,000 (120,000 ) 120,000 240,000 (108,000 ) 132,000 Trademarks 26,896 — 26,896 26,896 — 26,896 In Process R&D 263,936 — 263,936 263,936 — 263,936 Favorable contract asset 354,858 (292,004 ) 62,854 274,858 (263,901 ) 10,957 TTcogen intangible assets 29,607 (9,252 ) 20,355 29,607 (6,477 ) 23,130 $ 2,521,872 $ (1,080,354 ) $ 1,441,518 $ 2,578,564 $ (984,783 ) $ 1,593,781 Intangible liability Unfavorable contract liability $ 4,689,025 $ (2,483,724 ) $ 2,205,301 $ 4,689,025 $ (2,154,207 ) $ 2,534,818 |
Schedule of Future Amortization Expense | Aggregate future amortization over the next five years is estimated to be as follows: Year 1 $ (160,086 ) Year 2 (197,999 ) Year 3 (154,182 ) Year 4 (117,947 ) Year 5 (64,340 ) |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Supplemental Information Related to Leases | Supplemental information related to leases for the nine months ended September 30, 2020 was as follows: Cash paid for amounts included in the measurement of operating lease liabilities $ 486,907 Weighted-average remaining lease term - operating leases 3.5 years Weighted-average discount rate - operating leases 6 % |
Future Minimum Lease Commitments | Future minimum lease commitments under non-cancelable operating leases as of September 30, 2020 were as follows: Operating Leases Q4 2020 $ 163,287 2021 594,312 2022 576,793 2023 585,309 2024 153,502 Total lease payments 2,106,940 Less: imputed interest 242,940 Total $ 1,864,000 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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, 2020 was as follows: Common Stock Options Number of Options Exercise Share Weighted Price Weighted Life Aggregate Value Outstanding, December 31, 2019 1,352,874 $0.79-$10.33 $ 3.57 5.30 years $ 95,381 Granted 1,440,000 $0.71-$0.78 $ 0.72 Exercised (1,000 ) $1.20 $ 1.20 Canceled and forfeited (136,170 ) $1.20-$4.50 $ 2.41 Outstanding, September 30, 2020 2,655,704 $0.71-$10.33 $ 2.09 7.48 years $ 278,921 Exercisable, September 30, 2020 969,287 $ 3.73 $ 3,181 Vested and expected to vest, September 30, 2020 2,402,741 $ 2.18 $ 274,740 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table presents the asset reported in "other assets" in the consolidated balance sheet measured at its fair value on a recurring basis as of September 30, 2020 by level within the fair value hierarchy. September 30, 2020 Quoted prices in active markets for identical assets Significant other observable inputs Significant unobservable inputs Total Level 1 Level 2 Level 3 Recurring fair value measurements Marketable equity securities EuroSite Power Inc. $ 118,084 $ — $ 118,084 $ — Total recurring fair value measurements $ 118,084 $ — $ 118,084 $ — |
Schedule of Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings | The following table summarizes changes in Level 2 assets which are comprised of marketable equity securities for the period: Fair value at December 31, 2019 $ 216,487 Unrealized loss included in net income for the nine months ended September 30, 2020 (98,403 ) Fair value at September 30, 2020 $ 118,084 |
Segments (Tables)
Segments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | The following table presents information by reportable segment for the three and nine months ended September 30, 2020 and 2019 : Products and Services Energy Production Corporate, other and elimination (1) Total Three months ended September 30, 2020 Revenue - external customers $ 6,831,012 $ 368,695 $ — $ 7,199,707 Intersegment revenue 77,514 — (77,514 ) — Total revenue $ 6,908,526 $ 368,695 $ (77,514 ) $ 7,199,707 Gross profit $ 2,615,657 $ 171,087 $ — $ 2,786,744 Identifiable assets $ 21,031,221 $ 2,877,859 $ 11,338,685 $ 35,247,765 Three months ended September 30, 2019 Revenue - external customers $ 8,038,875 $ 631,602 $ — $ 8,670,477 Intersegment revenue 113,008 — (113,008 ) — Total revenue $ 8,151,883 $ 631,602 $ (113,008 ) $ 8,670,477 Gross profit $ 2,493,568 $ 337,673 $ — $ 2,831,241 Identifiable assets $ 25,166,483 $ 3,375,306 $ 11,412,533 $ 39,954,322 Nine months ended September 30, 2020 Revenue - external customers $ 21,201,579 $ 1,395,886 $ — $ 22,597,465 Intersegment revenue 309,224 — (309,224 ) — Total revenue $ 21,510,803 $ 1,395,886 $ (309,224 ) $ 22,597,465 Gross profit $ 7,976,904 $ 507,998 $ — $ 8,484,902 Identifiable assets $ 21,031,221 $ 2,877,859 $ 11,338,685 $ 35,247,765 Nine months ended September 30, 2019 Revenue - external customers $ 22,263,794 $ 2,450,710 $ — $ 24,714,504 Intersegment revenue 470,169 — (470,169 ) — Total revenue $ 22,733,963 $ 2,450,710 $ (470,169 ) $ 24,714,504 Gross profit $ 8,223,565 $ 992,350 $ — $ 9,215,915 Identifiable assets $ 25,166,483 $ 3,375,306 $ 11,412,533 $ 39,954,322 (1) Corporate, intersegment revenue, other and elimination includes various corporate assets. |
Description of business and b_3
Description of business and basis of presentation - Additional Information (Details) - segment | May 18, 2017 | Sep. 30, 2020 |
Business Acquisition [Line Items] | ||
Ownerhsip interest in American DG New York, LLC (percent) | 51.00% | |
Number of business segments | 2 | |
American DG Energy, Inc. | ||
Business Acquisition [Line Items] | ||
Ownership interest (percent) | 100.00% |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 7,199,707 | $ 8,670,477 | $ 22,597,465 | $ 24,714,504 |
Products | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 2,659,635 | 3,790,291 | 8,752,908 | 9,260,265 |
Installation services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 1,559,473 | 1,794,649 | 4,915,599 | 5,641,540 |
Maintenance services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 2,611,904 | 2,453,935 | 7,533,072 | 7,361,989 |
Energy production | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 368,695 | 631,602 | 1,395,886 | 2,450,710 |
Products and Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 6,908,526 | 8,151,883 | 21,510,803 | 22,733,963 |
Energy Production | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 368,695 | 631,602 | 1,395,886 | 2,450,710 |
Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 7,199,707 | 8,670,477 | 22,597,465 | 24,714,504 |
Operating Segments | Products and Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 6,831,012 | 8,038,875 | 21,201,579 | 22,263,794 |
Operating Segments | Products and Services | Products | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 2,659,635 | 8,752,908 | ||
Operating Segments | Products and Services | Installation services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 1,559,473 | 1,794,649 | 4,915,599 | 5,641,540 |
Operating Segments | Products and Services | Maintenance services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 2,611,904 | 2,453,935 | 7,533,072 | 7,361,989 |
Operating Segments | Products and Services | Energy production | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | ||
Operating Segments | Energy Production | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 368,695 | 631,602 | 1,395,886 | 2,450,710 |
Operating Segments | Energy Production | Products | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Operating Segments | Energy Production | Installation services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Operating Segments | Energy Production | Maintenance services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | $ 0 | 0 | $ 0 |
Operating Segments | Energy Production | Energy production | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 368,695 | $ 1,395,886 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020USD ($) | Sep. 30, 2020USD ($) | |
Revenue Recognition [Abstract] | ||
Payment term on product sales | 30 days | |
Payment term on installation services | 30 days | |
Payment term on contractually determined milestones | 30 days | |
Payment term on energy production contract invoices | 30 days | |
Revenue recognized that was in unbilled revenue at beginning of period | $ 2.2 | |
Revenue billed this period that had been recognized in previous periods | 1.8 | |
Deferred revenue recognized | 2.6 | |
Remaining performance obligations | $ 8.3 | $ 8.3 |
Performance obligation revenue expected to be recognized over the next 24 months (percent) | 99.00% | 99.00% |
Performance obligation revenue to be recognized in first 12 months (percent) | 98.00% | 98.00% |
Performance obligation revenue to be recognized over the subsequent 12 months (percent) | 1.00% | 1.00% |
Loss Per Common Share - Schedul
Loss Per Common Share - Schedule of Income (Loss) Per Common Share, Basic and Diluted (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Net loss attributable to stockholders | $ (231,920) | $ (586,249) | $ (2,088,195) | $ (4,223,455) |
Weighted average shares outstanding (shares) - basic and diluted | 24,850,261 | 24,843,177 | 24,850,257 | 24,838,367 |
Basic loss per share | $ (0.01) | $ (0.02) | $ (0.08) | $ (0.17) |
Stock Options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive shares underlying stock options outstanding | 2,536,664 | 85,272 | 2,555,097 | 188,272 |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of Property and Equipment (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 6,719,201 | $ 6,672,201 |
Less - accumulated depreciation and amortization | (3,721,187) | (3,206,253) |
Property and equipment, net, before construction in progress | 2,998,014 | 3,465,948 |
Energy systems | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 4,372,638 | 4,372,638 |
Energy systems | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life - years | 1 year | |
Energy systems | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life - years | 15 years | |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,509,208 | 1,462,208 |
Machinery and equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life - years | 5 years | |
Machinery and equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life - years | 7 years | |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 193,698 | 193,698 |
Useful life - years | 5 years | |
Computer software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 192,865 | 192,865 |
Computer software | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life - years | 3 years | |
Computer software | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life - years | 5 years | |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 450,792 | $ 450,792 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Depreciation (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation and amortization expense | $ 175,869 | $ 180,662 | $ 527,886 | $ 686,880 |
Intangible Assets and Liabili_3
Intangible Assets and Liabilities Other Than Goodwill -Amounts related to intangible assets (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets | $ 2,521,872 | $ 2,578,564 |
Less - accumulated amortization | (1,080,354) | (984,783) |
Intangible assets, net | 1,441,518 | 1,593,781 |
Unfavorable contract liability | 4,689,025 | 4,689,025 |
Less - accumulated amortization | (2,483,724) | (2,154,207) |
Unfavorable contract liability, net | 2,205,301 | 2,534,818 |
Product Certifications | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets | 726,159 | 726,159 |
Less - accumulated amortization | (440,592) | (399,906) |
Intangible assets, net | 285,567 | 326,253 |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets | 880,416 | 1,017,108 |
Less - accumulated amortization | (218,506) | (206,499) |
Intangible assets, net | 661,910 | 810,609 |
Developed Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets | 240,000 | 240,000 |
Less - accumulated amortization | (120,000) | (108,000) |
Intangible assets, net | 120,000 | 132,000 |
Favorable contract asset | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets | 354,858 | 274,858 |
Less - accumulated amortization | (292,004) | (263,901) |
Intangible assets, net | 62,854 | 10,957 |
TTcogen Intangible Assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets | 29,607 | 29,607 |
Less - accumulated amortization | (9,252) | (6,477) |
Intangible assets, net | 20,355 | 23,130 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets | 26,896 | 26,896 |
Less - accumulated amortization | 0 | 0 |
Intangible assets, net | 26,896 | 26,896 |
In Process R&D | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets | 263,936 | 263,936 |
Less - accumulated amortization | 0 | 0 |
Intangible assets, net | $ 263,936 | $ 263,936 |
Intangible Assets and Liabili_4
Intangible Assets and Liabilities Other Than Goodwill (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization of intangible assets | $ 21,564 | $ 22,951 | $ 64,692 | $ 70,699 |
Net credit to cost of sales for amortization of contract related intangible assets and liabilities | $ 98,053 | $ 107,998 | 301,414 | 394,731 |
Asset abandonment charge | $ 179,944 | $ 0 |
Intangible Assets and Liabili_5
Intangible Assets and Liabilities Other Than Goodwill - Future Amortization of Customer Contracts (Details) - Customer Contracts | Sep. 30, 2020USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
Year 1 | $ (160,086) |
Year 2 | (197,999) |
Year 3 | (154,182) |
Year 4 | (117,947) |
Year 5 | $ (64,340) |
Sale of Energy Producing Asse_2
Sale of Energy Producing Assets and Goodwill Impairment (Details) | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2019sale | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($)site | |
Discontinued Operations and Disposal Groups [Abstract] | |||
Number of sales of energy producing assets | sale | 2 | ||
Number of energy producing sites sold | site | 8 | ||
Consideration received | $ 7,000,000 | ||
Gain on sale | $ 0 | 1,081,049 | |
Maintenance and operation fee receivable | 40,425 | ||
Goodwill impairment | $ 0 | $ 3,693,198 |
Leases (Details)
Leases (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Leases [Abstract] | ||||
Lease cost | $ 179,042 | $ 196,476 | $ 565,180 | $ 568,847 |
Cash paid for amounts included in the measurement of operating lease liabilities | $ 486,907 | |||
Weighted-average remaining lease term - operating leases | 3 years 6 months 14 days | 3 years 6 months 14 days | ||
Weighted-average discount rate - operating leases (percent) | 6.00% | 6.00% |
Leases - Future Minimum Lease C
Leases - Future Minimum Lease Commitments (Details) | Sep. 30, 2020USD ($) |
Leases [Abstract] | |
Q4 2020 | $ 163,287 |
2021 | 594,312 |
2022 | 576,793 |
2023 | 585,309 |
2024 | 153,502 |
Total lease payments | 2,106,940 |
Less: imputed interest | 242,940 |
Total | $ 1,864,000 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-Based Compensation (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Payment Arrangement, Noncash Expense | $ 50,482 | $ 42,671 | $ 132,312 | $ 120,604 |
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 | 3,838,750 | ||
Number of shares remaining available for future issuance | 602,350 | 602,350 |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock Option Activity (Details) - Tecogen - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Stock Options Outstanding [Roll Forward] | ||
Beginning (shares) | 1,352,874 | |
Granted (shares) | 1,440,000 | |
Exercised (shares) | (1,000) | |
Canceled and forfeited (shares) | (136,170) | |
Ending (shares) | 2,655,704 | 1,352,874 |
Exercisable (shares) | 969,287 | |
Vested and expected to vest (shares) | 2,402,741 | |
Exercise Price Per Share [Abstract] | ||
Exercise Price Per Share, Outstanding, Minimum (per share) | $ 0.79 | $ 0.79 |
Exercise Price Per Share, Outstanding, Maximum (dollars per share) | 10.33 | 10.33 |
Exercise Price Per Share, Exercised (dollars per share) | 1.20 | |
Weighted Average Exercise Price [Roll Forward] | ||
Beginning (usd per share) | 3.57 | |
Granted (usd per share) | 0.72 | |
Exercised (usd per share) | 1.20 | |
Canceled and forfeited (usd per share) | 2.41 | |
Ending (usd per share) | 2.09 | $ 3.57 |
Exercisable (usd per share) | 3.73 | |
Vested and expected to vest (usd per share) | $ 2.18 | |
Weighted Average Remaining Life | 7 years 5 months 23 days | 5 years 3 months 20 days |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | ||
Outstanding, Aggregate Intrinsic Value | $ 278,921 | $ 95,381 |
Exercisable, Aggregate Intrinsic Value | 3,181 | |
Vested and expected to vest, Aggregate Intrinsic Value | $ 274,740 | |
Minimum | ||
Exercise Price Per Share [Abstract] | ||
Exercise Price Per Share, Granted (dollars per share) | $ 0.71 | |
Exercise Price, Canceled and Forfeited (dollars per share) | 1.20 | |
Maximum | ||
Exercise Price Per Share [Abstract] | ||
Exercise Price Per Share, Granted (dollars per share) | 0.78 | |
Exercise Price, Canceled and Forfeited (dollars per share) | $ 4.50 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value on a Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total recurring fair value measurements | $ 0 | |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale equity securities | $ 216,487 | |
Total recurring fair value measurements | 118,084 | |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total recurring fair value measurements | 0 | |
Estimate of Fair Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total recurring fair value measurements | 118,084 | |
Eurosite Power Inc | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale equity securities | 0 | |
Eurosite Power Inc | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale equity securities | 118,084 | |
Eurosite Power Inc | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale equity securities | $ 0 |
Fair Value Measurements - Chang
Fair Value Measurements - Change in Level 2 Assets (Details) - Fair Value, Measurements, Recurring - Level 2 | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair value, beginning | $ 216,487 |
Unrealized loss included in net income for the six months ended June 30, 2019 | $ (98,403) |
Note Payable and Revolving Li_2
Note Payable and Revolving Line of Credit, Bank (Details) | May 11, 2020USD ($) | Apr. 17, 2020USD ($)payment | May 04, 2018USD ($) | Jun. 30, 2020 | Sep. 30, 2020USD ($) |
Line of Credit Facility [Line Items] | |||||
Early termination fee | $ 25,000 | ||||
Notes payable | $ 1,874,200 | ||||
Stated interest rate (percent) | 1.00% | ||||
Number of monthly installments | payment | 18 | ||||
PPP loan proceeds used for payroll, rent and utilities, during 8-week covered period following disbursement of loan (percent) | 100.00% | ||||
Webster Business Credit Corporation | |||||
Line of Credit Facility [Line Items] | |||||
Line of credit limit | $ 10,000,000 | ||||
Debt issuance costs incurred | $ 145,011 | ||||
Amortization period for debt issuance costs | 3 years | ||||
Unamortized portion of debt issuance costs | $ 37,861 | ||||
Monthly installment amount | $ 106,356 | ||||
One Month LIBOR | Webster Business Credit Corporation | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable interest rate (percent) | 3.00% | ||||
Lender's Base Rate | Webster Business Credit Corporation | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable interest rate (percent) | 1.50% | ||||
Federal Funds Rate | Webster Business Credit Corporation | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable interest rate (percent) | 0.50% | ||||
Lender's Base Rate - One Month LIBOR | Webster Business Credit Corporation | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable interest rate (percent) | 2.75% |
Commitments and Contingencies (
Commitments and Contingencies (Details) - Eurosite Power Inc | Sep. 30, 2020USD ($) |
Loss Contingencies [Line Items] | |
Guarantee of obligations of Eurosite Power, Inc. | $ 78,560 |
Guarantee liability | $ 7,000 |
Segments (Details)
Segments (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)segment | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of operating divisions | segment | 2 | ||||
Revenue | $ 7,199,707 | $ 8,670,477 | $ 22,597,465 | $ 24,714,504 | |
Gross profit | 2,786,744 | 2,831,241 | 8,484,902 | 9,215,915 | |
Assets | 35,247,765 | 39,954,322 | 35,247,765 | 39,954,322 | $ 41,116,635 |
Products and Services | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 6,908,526 | 8,151,883 | 21,510,803 | 22,733,963 | |
Gross profit | 2,615,657 | 2,493,568 | 7,976,904 | 8,223,565 | |
Assets | 21,031,221 | 25,166,483 | 21,031,221 | 25,166,483 | |
Energy Production | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 368,695 | 631,602 | 1,395,886 | 2,450,710 | |
Gross profit | 171,087 | 337,673 | 507,998 | 992,350 | |
Assets | 2,877,859 | 3,375,306 | 2,877,859 | 3,375,306 | |
Corporate, other and elimination | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | (77,514) | (113,008) | (309,224) | (470,169) | |
Gross profit | 0 | 0 | 0 | 0 | |
Assets | 11,338,685 | 11,412,533 | 11,338,685 | 11,412,533 | |
Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 7,199,707 | 8,670,477 | 22,597,465 | 24,714,504 | |
Operating Segments | Products and Services | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 6,831,012 | 8,038,875 | 21,201,579 | 22,263,794 | |
Operating Segments | Energy Production | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 368,695 | 631,602 | 1,395,886 | 2,450,710 | |
Operating Segments | Corporate, other and elimination | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 0 | 0 | 0 | 0 | |
Intersegment Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 0 | 0 | 0 | 0 | |
Intersegment Eliminations | Products and Services | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 77,514 | 113,008 | 309,224 | 470,169 | |
Intersegment Eliminations | Energy Production | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 0 | 0 | 0 | 0 | |
Intersegment Eliminations | Corporate, other and elimination | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | $ (77,514) | $ (113,008) | $ (309,224) | $ (470,169) |