MagneGas Reports Financial Results For 1st Quarter 2014
TAMPA, Fla., May 12, 2014 /PRNewswire/ -- MagneGas Corporation ("MagneGas" or the "Company") (NASDAQ: MNGA), an energy and technology company that counts among its inventions a patented process that converts liquid waste into a hydrogen-based fuel, today announced its financial results for the fiscal quarter ended March 31, 2014. During the period, the Company continued to implement its new strategy with a focus on the following areas:
- Industrial Gas Sales for Metal Working Market;
- Equipment Sales for Liquid Waste Processing;
- Use of MagneGas® for the Co-Combustion of Hydro-Carbon Fuels to Reduce Emissions
In addition, the Company continued an aggressive Research and Development campaign which included a thorough review of its intellectual property and the creation of a framework for several additional patents.
"The first quarter of 2014 was marked by solid progress in our MagneGas® fuel sales with the addition of several new customers and distributors with a corresponding steady increase each month in revenue. We unveiled our new mobile sterilization system for biomass processing and made steady progress in our Co-Combustion verification projects around the world. We were also able to raise approximately $9 million in capital which affords us 18 to 24 months of cash to implement our Company strategy," stated Ermanno Santilli CEO of MagneGas. "Overall I am very satisfied with our progress so far in 2014."
March 31, 2014
- Revenues for the three months ended March 31, 2014 increased 46% over the same period 2013 and were $191,601 and $130,840, respectively;
- Operating expenses decreased for the quarter to $1,482,931 versus $1,631,050 for the same period prior year;
- The Company had an ending cash balance of $7,117,314 on March 31, 2014 versus $216,523 on December 31, 2013.
March 31, 2014 Business Highlights:
- Pursuant to a previously signed Memorandum of Understanding, a subsidiary Joint Venture company was formed with a confidential partner to pursue the Co-Combustion of MagneGas® with Coal in the United States and Canada to reduce emissions and improve efficiency. This subsidiary Joint Venture company is engaging in ongoing testing with a major utility research center in the United States;
- A Joint Venture was signed with FutureEnergy Pty Ltd of Australia to pursue various advanced fuel applications with Co-Combustion;
- A development agreement was signed with the Italian National Alternative Energy Agency to test various applications of MagneGas equipment and fuels;
- The Company unveiled a new mobile liquid waste processing solution at a major BioMass conference in March;
- A new fuel distributor was added in Indiana and MagneGas® fuel was selected for four demolition projects in the United States;
- The Company filed a new provisional patent covering the unique properties of MagneGas® fuel;
- The Company completed construction of its mobile gasification system for its customer in Kazakhstan and is preparing it for shipment;
- A total of $9,000,000 in capital was raised from two registered offerings through one institutional investor.
March 31, 2014 Financial Results
For the fiscal quarter ended March 31, 2014, revenues were $191,601, as compared to $130,840 for the same period in 2013. Metal cutting revenue was up at $128,927 for the quarter ended March 31, 2014, as compared to $109,785 for the quarter ended March 31, 2013. Metal cutting revenue was up primarily due to the addition of new customers and demolition projects. In addition, overall revenue was up due to the recognition of the balance of the proceeds received from the sale of the gasification system to Kazakhstan.
Operating expenses decreased 9% from $1,631,050 for the quarter ended March 31, 2013 to $1,482,931 for the quarter ended March 31, 2014. This decrease was attributed to general cost savings implemented in this quarter. In addition, stock based compensation decreased from $399,800 for the quarter ended March 31, 2013 to $358,436 for the quarter ended March 31, 2014. The Company had an operating loss of $1,564,714 for the quarter ended March 31, 2013, as compared to an operating loss of $1,396,930 for the quarter ended March 31, 2014.
The MagneGas IR App is now available for free in Apple's App Store for the iPhone or iPad http://bit.ly/AfLYww and at Google Play http://bit.ly/Km2iyk for Android mobile devices.
To be added to the MagneGas investor email list, please email [email protected] with "MNGA" in the subject line.
About MagneGas Corporation
Founded in 2007, Tampa-based MagneGas Corporation (NASDAQ: MNGA) is a technology Company that counts among its inventions, a patented process that converts liquid waste into hydrogen based fuels. The Company currently sells MagneGas® into the metal working market as a replacement to acetylene. It is also selling equipment for the sterilization of bio-contaminated liquid waste for various industrial and agricultural markets. In addition, the Company is developing a variety of ancillary uses for MagneGas® fuels utilizing its high flame temperature for co-combustion of hydrocarbon fuels and other advanced applications. For more information on MagneGas®, please visit the Company's website at www.MagneGas.com.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements as defined within Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements relate to future events, including our ability to raise capital, or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. The Company is currently using new ethylene glycol to produce fuel until proper permits to process used liquid waste have been obtained.
For a discussion of these risks and uncertainties, please see our filings with the Securities and Exchange Commission. Our public filings with the SEC are available from commercial document retrieval services and at the website maintained by the SEC at http://www.sec.gov.
| MagneGas Corporation |
||||||||
| Balance Sheets |
||||||||
| March 31, |
December 31, |
|||||||
| 2014 |
2013 |
|||||||
| (Unaudited) |
(Audited) |
|||||||
| Assets |
||||||||
| Current Assets |
||||||||
| Cash and cash equivalents |
$ |
7,117,314 |
$ |
216,523 |
||||
| Accounts receivable, net of allowance for doubtful accounts of $95,577 and $83,069, respectively |
135,478 |
125,930 |
||||||
| Inventory, at cost |
1,699,765 |
1,710,066 |
||||||
| Prepaid and other current assets |
119,881 |
46,473 |
||||||
| Total Current Assets |
9,072,438 |
2,098,992 |
||||||
| Property and equipment, net of accumulated depreciation of $712,453 and $661,744, respectively |
5,265,350 |
5,306,152 |
||||||
| Intangible assets, net of accumulated amortization of $260,563 and $248,446, respectively |
492,710 |
482,824 |
||||||
| Investment in joint ventures |
490,410 |
490,410 |
||||||
| Security deposits |
8,568 |
8,568 |
||||||
| Total Assets |
$ |
15,329,476 |
$ |
8,386,946 |
||||
| Liabilities and Stockholders' Equity |
||||||||
| Current Liabilities |
||||||||
| Accounts payable |
$ |
155,956 |
$ |
231,008 |
||||
| Accrued expenses |
250,663 |
341,579 |
||||||
| Deferred revenue |
116,665 |
139,998 |
||||||
| Customer Deposits |
39,341 |
|||||||
| Total Current Liabilities |
523,284 |
751,926 |
||||||
| Total Liabilities |
523,284 |
751,926 |
||||||
| Stockholders' Equity |
||||||||
| Preferred stock: $0.001 par; 10,000,000 authorized; 1,001,376 issued and outstanding |
1,001 |
1,000 |
||||||
| Common stock: $0.001 par; 90,000,000 authorized; 30,699,859 and 23,259,109 issued and outstanding, respectively |
30,700 |
23,259 |
||||||
| Additional paid-in capital |
34,723,818 |
26,163,522 |
||||||
| Accumulated deficit |
(19,949,327) |
(18,552,761) |
||||||
| Total Stockholders' Equity |
14,806,192 |
7,635,020 |
||||||
| Total Liabilities and Stockholders' Equity |
$ |
15,329,476 |
$ |
8,386,946 |
||||
The accompanying notes are an integral part of the financial statements.
| MagneGas Corporation |
||||||||
| Statements of Operations |
||||||||
| (Unaudited) |
||||||||
| Three Months Ended March 31, |
||||||||
| 2014 |
2013 |
|||||||
| Revenue: |
$ |
191,601 |
$ |
130,840 |
||||
| Direct costs |
105,600 |
64,504 |
||||||
| 86,001 |
66,336 |
|||||||
| Operating Expenses: |
||||||||
| Selling, General and Administration |
763,429 |
994,380 |
||||||
| Investor Relations |
223,195 |
55,889 |
||||||
| Stock-based compensation |
358,436 |
399,800 |
||||||
| Research and development |
74,929 |
13,290 |
||||||
| Depreciation and amortization |
62,942 |
167,691 |
||||||
| Total Operating Expenses |
1,482,931 |
1,631,050 |
||||||
| Operating Income (Loss) |
(1,396,930) |
(1,564,714) |
||||||
| Other Income and (Expense): |
- |
|||||||
| Interest |
364 |
(111) |
||||||
| Total Other Income (Expense) |
364 |
(111) |
||||||
| Net Income (Loss) before tax benefit |
(1,396,566) |
(1,564,825) |
||||||
| Provision for Income Taxes |
- |
|||||||
| Net Income (Loss) |
$ |
(1,396,566) |
$ |
(1,564,825) |
||||
| Net Loss per share: |
||||||||
| Basic and diluted |
$ |
(0.05) |
$ |
(0.07) |
||||
| Weighted average common shares: |
||||||||
| Basic and diluted |
25,607,555 |
20,081,935 |
||||||
SOURCE MagneGas Corporation
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