MagneGas Reports Financial Results For 2014
TAMPA, Fla., March 12, 2015 /PRNewswire/ -- MagneGas Corporation ("MagneGas" or the "Company") (NASDAQ: MNGA), the developer of a technology that converts liquid waste into a hydrogen-based fuel, today announced its financial results for the fiscal year ending December 31, 2014. During 2014, the Company focused its efforts on launching its new MagneGas2® fuel, continued development of the co-combustion business line and launching international equipment sales for liquid sterilization. In addition, the Company developed relationships with key stakeholders from targeted markets and purchased a gas distribution company to create a platform for MagneGas® fuel sales. The Company also elevated its focus on the role MagneGas can play in sustainable development.
Full Year Business Highlights
The Company has identified three major market segments which it is pursuing to generate revenue:
- Industrial gas sales;
- Equipment sales for liquid waste processing;
- Use of MagneGas® for the co-combustion of hydrocarbon fuels to reduce emissions.
The Company also focused on research and development initiatives in the following key areas:
- Combustion of MagneGas® with hydrocarbon fuels, such as coal, to reduce emissions;
- High volume processing of oil, with subsequent new fuel launch and development;
- Sterilization of heavy manures and sludge in high volume.
Full Year Financial Highlights:
- Increased total revenue for the metal cutting segment by 101% to $875,373 for the period ending December 31, 2014 as compared to $435,995 for the same period prior year;
- Increased overall revenue to $1,023,046 for the period ending December 31, 2014 versus $988,986 for the same period 2013;
- Had an ending cash balance of $5,061,674 on December 31, 2014 versus $216,523 on December 31, 2013.
"2014 was an exciting year for MagneGas as we advanced commercialization of our industrial gas, further validated our claims through independent third-parties such as Georgia Institute of Technology, and added marquis customers such as the NYC Fire Department. The launch of MagneGas 2 and the MagneTote™ has further elevated our position in the industrial gas industry as the only renewable industrial cutting fuel available on the market today," stated Ermanno Santilli CEO of MagneGas. "We are finally starting to see results as evidenced by our double digit growth in the metal cutting segment and we are now in a significantly better cash position versus prior years. We will continue our efforts to grow profitability in the industrial gas segment and we remain very encouraged by the outlook for the business in 2015 and beyond."
December 31, 2014 Financial Results
For the fiscal year ending December 31, 2014 revenues were $1,023,046 as compared to $988,986 for the same period prior year. Metal cutting revenue was $875,373 for December 31, 2014 as compared to $435,995 for the year ending December 31, 2013. This was primarily due to an increase in MagneGas® fuel sales and the revenue received from the acquisition of ESSI, Inc on October 27, 2014.
Operating expenses (excluding stock compensation and payments), decreased to $4,739,171 for the period ending December 31, 2014 versus $4,974,070 for the same period 2013. The direct costs of revenue increased to $673,179 for the period ending December 31, 2014 versus $440,508 for the same period 2013. This increase was primarily due the costs involved in the introduction of MagneGas2, which is being produced in low quantities during the product roll-out, causing a higher unit cost.
The Company continued to progress the various strategic and sales relationships. An update to these relationships is as follows:
- On October 27, 2014 the Company acquired ESSI. Inc, a gas distribution company located in Florida. This strategic acquisition was made to allow a platform to grow MagneGas® fuel sales;
- The Company unveiled a new mobile system for the sterilization of bio-contaminated waste;
- A major hog farm in Indiana signed a joint venture Memorandum of Understanding to pursue the use of the MagneGas system to sterilize hog manure and produce MagneGas® fuel;
- The Company launched MagneGas2® a new fuel made from renewable liquid waste which is shown to cut 38% faster than acetylene;
- The Company received approval from the Fire Department of New York to use MagneGas® in replacement of acetylene;
- The Company filed 7 provisional patents covering various ancillary uses of MagneGas® fuel and equipment;
- The Company purchased new headquarters.
Conference Call
MagneGas' executive management team will host a conference call today, Thursday, March 12th at 11:00 am Eastern Time to discuss the company's financial results for the full year ending December 31, 2014, as well as the Company's corporate progress and other meaningful developments.
Interested parties can access the conference call by dialing (877) 407-8033 for U.S. callers or (201) 689-8033 for international callers.
A teleconference replay of the conference call will be available approximately one hour following the call, through midnight Sunday, April 12, 2015, and can be accessed by dialing (877) 660-6853 (U.S. callers) or (201) 612-7415 (international callers) and entering conference ID: 13603459.
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 the producer of MagneGas™, a natural gas alternative and metal working fuel that can be made from certain industrial, municipal, agricultural and military liquid wastes following the receipt of appropriate governmental permits.
The Company's patented Plasma Arc Flow™ process gasifies liquid waste, creating a clean burning hydrogen based fuel that is essentially interchangeable with natural gas. MagneGas™ can be used for metal working, cooking, heating, powering bi fuel automobiles and more. 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.
| (tables follow)
|
||||||||
| Audited Balance Sheets |
||||||||
| MagneGas Corporation |
||||||||
| December 31, |
||||||||
| 2014 |
2013 |
|||||||
| Assets |
||||||||
| Current Assets |
||||||||
| Cash |
$ |
5,061,674 |
$ |
216,523 |
||||
| Accounts receivable, net of allowance for doubtful accounts of $104,028 |
268,308 |
125,930 |
||||||
| Inventory (including units for resale), at cost |
2,164,838 |
1,710,066 |
||||||
| Prepaid and other current assets |
300,065 |
46,473 |
||||||
| Total Current Assets |
7,794,885 |
2,098,992 |
||||||
| Property and equipment, net of accumulated depreciation of $961,520 and $661,744, respectively |
6,353,655 |
5,306,152 |
||||||
| Deferred tax asset |
0 |
0 |
||||||
| Intangible assets, net of accumulated amortization of $296,914 and $248,446, respectively |
492,252 |
482,824 |
||||||
| Investment in joint ventures |
718,246 |
490,410 |
||||||
| Security Deposits |
21,647 |
8.568 |
||||||
| Goodwill |
2,098,069 |
|||||||
| Total Assets |
$ |
17,478,754 |
$ |
8,386,946 |
||||
| Liabilities and Stockholders' Equity |
||||||||
| Current Liabilities |
||||||||
| Accounts payable |
$ |
155,909 |
$ |
231,008 |
||||
| Accrued expenses |
52,120 |
341,579 |
||||||
| Deferred revenue and customer deposits |
56,666 |
179,339 |
||||||
| Total Current Liabilities |
264,695 |
751,926 |
||||||
| Long Term Liabilities |
||||||||
| Note Payable |
520,000 |
0 |
||||||
| Total Liabilities |
784,695 |
751,926 |
||||||
| Stockholders' Equity |
||||||||
| Preferred stock: $0.001 par; 10,000,000 authorized; 1,002,000 issued and outstanding, respectively |
1,002 |
1,000 |
||||||
| Common stock: $0.001 par; 900,000,000 authorized; 36,691,505 and 23,259,109 issued and outstanding, respectively |
36,692 |
23,259 |
||||||
| Additional paid-in capital |
42,361,549 |
26,163,522 |
||||||
| Issued and unearned stock compensation |
0 |
0 |
||||||
| Accumulated deficit |
(25,705,184) |
(18,552,761) |
||||||
| Total Stockholders' Equity |
16,694,059 |
7,635,020 |
||||||
| Total Liabilities and Stockholders' Equity |
$ |
17,478,754 |
$ |
8,386,946 |
||||
| MagneGas Corporation |
||||||||
| Audited Statements of Operations |
||||||||
| Year Ended December 31, |
||||||||
| 2014 |
2013 |
|||||||
| Revenue |
$ |
1,023,046 |
$ |
988,986 |
||||
| Direct Costs |
673,867 |
548,478 |
||||||
| 349,179 |
440,508 |
|||||||
| Operating Expenses: |
||||||||
| Selling, General, and Administration |
3,500,448 |
3,488,600 |
||||||
| Net loss on of settlement contracts and Revaluation of assets |
0 |
622,103 |
||||||
| Investor Relations & Public Expense |
475,025 |
198,901 |
||||||
| Stock-based employee & director compensation |
1,511,989 |
1, 465,888 |
||||||
| Stocks issued to pay for services |
1,245,320 |
318,361 |
||||||
| Research and Development |
387,058 |
179,559 |
||||||
| Depreciation and Amortization |
376,640 |
484,907 |
||||||
| Total Operating Expenses |
7,496,480 |
6,758,319 |
||||||
| Operating Income (Loss) |
(7,147,301) |
(6,317,811) |
||||||
| Other Income and (Expense) |
(5,151) |
(913) |
||||||
| Total Other Income (Expense) |
(5,151) |
(913) |
||||||
| Net Income (Loss) before tax provision |
(7,152,452) |
(6,318,724) |
||||||
| Provision for Income Taxes |
0 |
|||||||
| Net Income (Loss) |
$ |
(7,152,452) |
$ |
(6,318,724) |
||||
| Basic |
$ |
(0.23) |
$ |
(0.29) |
||||
| Diluted |
$ |
(0.23) |
$ |
(0.29) |
||||
| Weighted average common shares: |
||||||||
| Basic and Diluted |
31,762,338 |
21,781,076 |
||||||
SOURCE MagneGas Corporation
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