2020 Q1 Form 10-Q Financial Statement

#000153743520000043 Filed on May 14, 2020

View on sec.gov

Income Statement

Concept 2020 Q1 2019 Q1
Revenue $7.963M $8.177M
YoY Change -2.62% -19.64%
Cost Of Revenue $5.171M $5.218M
YoY Change -0.91% -17.67%
Gross Profit $2.792M $2.959M
YoY Change -5.63% -22.9%
Gross Profit Margin 35.07% 36.19%
Selling, General & Admin $3.910M $6.306M
YoY Change -38.0% 67.4%
% of Gross Profit 140.02% 213.13%
Research & Development $364.3K $345.1K
YoY Change 5.58% 14.18%
% of Gross Profit 13.05% 11.66%
Depreciation & Amortization $90.15K $168.2K
YoY Change -46.42% -15.53%
% of Gross Profit 3.23% 5.69%
Operating Expenses $4.274M $6.651M
YoY Change -35.74% 63.45%
Operating Profit -$1.117M -$3.347M
YoY Change -66.62% -4820.53%
Interest Expense $59.99K $28.03K
YoY Change 114.03% 115.37%
% of Operating Profit
Other Income/Expense, Net
YoY Change
Pretax Income -$1.185M -$3.414M
YoY Change -65.28% -9292.22%
Income Tax $5.220K -$8.170K
% Of Pretax Income
Net Earnings -$1.202M -$3.280M
YoY Change -63.34% -15900.75%
Net Earnings / Revenue -15.1% -40.12%
Basic Earnings Per Share -$0.05 -$0.13
Diluted Earnings Per Share -$0.05 -$0.13
COMMON SHARES
Basic Shares Outstanding 24.85M shares 24.82M shares
Diluted Shares Outstanding 24.85M shares 24.82M shares

Balance Sheet

Concept 2020 Q1 2019 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $921.6K $2.610M
YoY Change -64.69% 117.52%
Cash & Equivalents $921.6K $2.610M
Short-Term Investments
Other Short-Term Assets $554.8K $618.9K
YoY Change -10.36% -28.86%
Inventory $7.471M $6.668M
Prepaid Expenses
Receivables $12.11M $11.68M
Other Receivables $0.00 $11.68M
Total Short-Term Assets $26.08M $26.76M
YoY Change -2.55% 12.9%
LONG-TERM ASSETS
Property, Plant & Equipment $3.344M $3.925M
YoY Change -14.8% -67.42%
Goodwill $5.282M $5.282M
YoY Change 0.0% -60.48%
Intangibles $1.433M $1.573M
YoY Change -8.94% -46.63%
Long-Term Investments
YoY Change
Other Assets $274.6K $314.7K
YoY Change -12.74% -32.02%
Total Long-Term Assets $12.38M $13.64M
YoY Change -9.28% -52.68%
TOTAL ASSETS
Total Short-Term Assets $26.08M $26.76M
Total Long-Term Assets $12.38M $13.64M
Total Assets $38.46M $40.41M
YoY Change -4.83% -23.08%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $5.535M $5.914M
YoY Change -6.41% -13.48%
Accrued Expenses $2.303M $2.223M
YoY Change 3.61% 30.29%
Deferred Revenue
YoY Change
Short-Term Debt $1.457M $0.00
YoY Change -100.0%
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $12.16M $10.57M
YoY Change 15.06% -3.63%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00
YoY Change
Other Long-Term Liabilities $1.510M $1.991M
YoY Change -24.13% -74.38%
Total Long-Term Liabilities $1.510M $1.991M
YoY Change -24.13% -74.38%
TOTAL LIABILITIES
Total Short-Term Liabilities $12.16M $10.57M
Total Long-Term Liabilities $1.510M $1.991M
Total Liabilities $16.27M $15.72M
YoY Change 3.49% -16.06%
SHAREHOLDERS EQUITY
Retained Earnings -$34.58M -$31.95M
YoY Change 8.24% 39.27%
Common Stock $24.85K $24.84K
YoY Change 0.06% 0.11%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $22.11M $24.55M
YoY Change
Total Liabilities & Shareholders Equity $38.46M $40.41M
YoY Change -4.83% -23.08%

Cashflow Statement

Concept 2020 Q1 2019 Q1
OPERATING ACTIVITIES
Net Income -$1.202M -$3.280M
YoY Change -63.34% -15900.75%
Depreciation, Depletion And Amortization $90.15K $168.2K
YoY Change -46.42% -15.53%
Cash From Operating Activities $1.118M -$611.2K
YoY Change -282.97% -14.19%
INVESTING ACTIVITIES
Capital Expenditures $53.67K $24.79K
YoY Change 116.53% -82.94%
Acquisitions
YoY Change
Other Investing Activities -$23.47K $4.999M
YoY Change -100.47% 1090.33%
Cash From Investing Activities -$120.4K $4.959M
YoY Change -102.43% 2465.1%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -$954.0K -$2.010M
YoY Change -52.54% -4266.1%
NET CHANGE
Cash From Operating Activities $1.118M -$611.2K
Cash From Investing Activities -$120.4K $4.959M
Cash From Financing Activities -$954.0K -$2.010M
Net Change In Cash $43.96K $2.338M
YoY Change -98.12% -596.6%
FREE CASH FLOW
Cash From Operating Activities $1.118M -$611.2K
Capital Expenditures $53.67K $24.79K
Free Cash Flow $1.065M -$636.0K
YoY Change -267.4% -25.84%

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CY2019Q4 us-gaap Other Assets Noncurrent
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CY2020Q1 us-gaap Property Plant And Equipment Gross
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CY2019Q4 us-gaap Property Plant And Equipment Net
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CY2020Q1 us-gaap Property Plant And Equipment Net
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CY2019Q1 us-gaap Provision For Doubtful Accounts
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CY2019Q1 us-gaap Research And Development Expense
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CY2020Q1 us-gaap Research And Development Expense
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CY2020Q1 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
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CY2019Q1 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
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CY2020Q1 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
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CY2020Q1 us-gaap Revenue Remaining Performance Obligation
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CY2019Q1 us-gaap Selling Expense
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CY2020Q1 us-gaap Selling Expense
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CY2019Q1 us-gaap Selling General And Administrative Expense
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CY2020Q1 us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
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CY2019Q1 us-gaap Share Based Compensation
ShareBasedCompensation
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CY2020Q1 us-gaap Share Based Compensation
ShareBasedCompensation
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CY2019Q4 us-gaap Stockholders Equity
StockholdersEquity
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CY2020Q1 us-gaap Stockholders Equity
StockholdersEquity
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CY2018Q4 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
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CY2019Q1 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
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CY2019Q4 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
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CY2020Q1 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
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CY2019Q1 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
24818979 shares
CY2020Q1 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
24850250 shares
CY2020Q1 us-gaap Nature Of Operations
NatureOfOperations
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:12px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"></font><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Description of Business and Basis of Presentation</font><font style="font-family:inherit;font-size:10pt;"> </font></div><div style="line-height:120%;padding-bottom:8px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Description of Business</font></div><div style="line-height:120%;padding-bottom:8px;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Tecogen Inc., or the Company, we, our or us, produces commercial and industrial 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&#8217;s products supply electric power or mechanical power for cooling, while heat from the engine is recovered and purposefully used at a facility. The Company also installs, owns, operates and maintains complete energy systems and other complementary systems at customer sites and sells electricity, hot water, heat and cooling energy under long-term contracts at prices guaranteed to the customer to be below conventional utility rates. </font></div><div style="line-height:120%;padding-bottom:8px;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"> The majority of the Company&#8217;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 NASDAQ under the ticker symbol TGEN.</font></div><div style="line-height:120%;padding-bottom:8px;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On May 18, 2017, the Company acquired </font><font style="font-family:inherit;font-size:10pt;">100%</font><font style="font-family:inherit;font-size:10pt;"> of the outstanding common stock of American DG Energy Inc., formerly a related entity, in a stock-for-stock merger.</font></div><div style="line-height:120%;padding-bottom:8px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Basis of Presentation</font></div><div style="line-height:120%;padding-bottom:6px;padding-top:6px;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">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 </font><font style="font-family:inherit;font-size:10pt;">three months ended</font><font style="font-family:inherit;font-size:10pt;"> </font><font style="font-family:inherit;font-size:10pt;">March&#160;31, 2020</font><font style="font-family:inherit;font-size:10pt;"> are not necessarily indicative of the results that may be expected for the year ending </font><font style="font-family:inherit;font-size:10pt;">December&#160;31, 2020</font><font style="font-family:inherit;font-size:10pt;">. </font></div><div style="line-height:120%;padding-bottom:6px;padding-top:6px;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The condensed consolidated balance sheet at </font><font style="font-family:inherit;font-size:10pt;">December&#160;31, 2019</font><font style="font-family:inherit;font-size:10pt;"> 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. </font></div><div style="line-height:120%;padding-bottom:6px;padding-top:6px;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">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 </font><font style="font-family:inherit;font-size:10pt;">December&#160;31, 2019</font><font style="font-family:inherit;font-size:10pt;">.</font></div><div style="line-height:120%;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">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, and a joint venture, American DG New York, LLC, in which American DG Energy Inc. holds a </font><font style="font-family:inherit;font-size:10pt;">51%</font><font style="font-family:inherit;font-size:10pt;"> 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. </font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company&#8217;s operations are comprised of </font><font style="font-family:inherit;font-size:10pt;">two</font><font style="font-family:inherit;font-size:10pt;"> 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. </font></div><div style="line-height:120%;padding-bottom:6px;padding-top:6px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Reclassification </font></div><div style="line-height:120%;padding-bottom:6px;padding-top:6px;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Certain prior period amounts have been reclassified to conform with current year presentation.</font></div><div style="line-height:120%;padding-bottom:8px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Use of Estimates</font></div><div style="line-height:120%;padding-bottom:8px;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">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.</font></div><div style="line-height:120%;padding-bottom:8px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Income Taxes</font></div><div style="line-height:120%;padding-bottom:8px;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;"></font><font style="font-family:inherit;font-size:10pt;">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.</font></div></div>
CY2020Q1 us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:8px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Use of Estimates</font></div><div style="line-height:120%;padding-bottom:8px;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">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</font></div></div>

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