MagneGas Reports Financial Results For Second Quarter 2014
TAMPA, Fla., Aug. 6, 2014 /PRNewswire/ -- MagneGas Corporation ("MagneGas" or the "Company") (NASDAQ: MNGA), a leading 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 June 30, 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
- Research and Development Related to Co-Combustion and Oil Processing
"The second quarter of 2014 was marked by solid progress. Our MagneGas® fuel distribution expanded into California and South Florida and we grew gas sales by almost 25% over Q2 2013. We completed the mobile recycler for our customer in Kazakhstan and made steady progress in our Co-Combustion verification projects around the world. Our R&D team also completed the production scale version of our new Venturi design and confirmed our new feedstock for our 2nd generation gas would be from Vegetable oil. Finally, we raised more than five provisional or definitive patents as part of our strategy of strengthening our Intellectual Property," stated Ermanno Santilli, CEO of MagneGas. "Having achieved these results while controlling our costs makes me satisfied with our progress so far in 2014."
June 30, 2014
- Revenues for the six months ended June 30, 2014 increased 40% over the same period in 2013 and were $369,931 and $264,325, respectively;
- Operating expenses remained flat at $3,170,612 versus $3,135,941 for the same period prior year;
- The Company had an ending cash balance of $6,438,599 on June 30, 2014 versus $216,523 on December 31, 2013.
June 30, 2014 Financial Results
For the six months ended June 30, 2014, revenues were $369,931, as compared to $264,325 for the same period in 2013. Metal cutting revenue was up at $268,924 for the six months ended June 30, 2014, as compared to $217,659 for the six months ended June 30, 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 increased 1% from $3,135,941 for the six months ended June 30, 2013 to $3,170,612 for the six months ended June 30, 2014. This increase was attributed to expenses related to investor relations and research and development related to co-combustion and the oil processing unit. This was offset by general cost savings implemented in the general and administrative area in this quarter. In addition, stock based compensation decreased from $785,294 for the six months ended June 30, 2013 to $732,028 for the six months ended June 30, 2014. The Company had an operating loss of $3,016,554 for the six months ended June 30, 2013, as compared to an operating loss of $3,030,841 for the six months ended June 30, 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.
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 |
||||||||
| June 30, |
December 31, |
|||||||
| 2014 |
2013 |
|||||||
| (Unaudited) |
(Audited) |
|||||||
| Assets |
||||||||
| Current Assets |
||||||||
| Cash and cash equivalents |
$ |
6,438,599 |
$ |
216,523 |
||||
| Accounts receivable, net of allowance for doubtful accounts of $89,802 and $83,069, respectively |
135,036 |
125,930 |
||||||
| Inventory, at cost |
1,725,959 |
1,710,066 |
||||||
| Prepaid and other current assets |
233,258 |
46,473 |
||||||
| Total Current Assets |
8,532,852 |
2,098,992 |
||||||
| Property and equipment, net of accumulated depreciation of $802,608 and $661,744, respectively |
5,239,259 |
5,306,152 |
||||||
| Intangible assets, net of accumulated amortization of $272,680 and $248,446, respectively |
495,157 |
482,824 |
||||||
| Investment in joint ventures |
490,410 |
490,410 |
||||||
| Security deposits |
58,573 |
8,568 |
||||||
| Total Assets |
$ |
14,816,251 |
$ |
8,386,946 |
||||
| Liabilities and Stockholders' Equity |
||||||||
| Current Liabilities |
||||||||
| Accounts payable |
$ |
149,263 |
$ |
231,008 |
||||
| Accrued expenses |
276,590 |
341,579 |
||||||
| Deferred revenue |
93,332 |
139,998 |
||||||
| Customer Deposits |
0 |
39,341 |
||||||
| Total Current Liabilities |
519,185 |
751,926 |
||||||
| Total Liabilities |
$ |
519,185 |
$ |
751,926 |
||||
| Stockholders' Equity |
||||||||
| Preferred stock: $0.001 par; 10,000,000 authorized; 1,000,000 issued and outstanding |
1,000 |
1,000 |
||||||
| Common stock: $0.001 par; 90,000,000 authorized; 32,814,763 and 23,259,109 issued and outstanding, respectively |
32,815 |
23,259 |
||||||
| Additional paid-in capital |
35,846,853 |
26,163,522 |
||||||
| Accumulated deficit |
(21,583,602) |
(18,552,761) |
||||||
| Total Stockholders' Equity |
14,297,066 |
7,635,020 |
||||||
| Total Liabilities and Stockholders' Equity |
$ |
14,816,251 |
$ |
8,386,946 |
||||
| MagneGas Corporation |
||||||||||||||||
| Statements of Operations |
||||||||||||||||
| (Unaudited) |
||||||||||||||||
| Three Months Ended |
Six Months Ended |
|||||||||||||||
| June 30, |
June 30, |
|||||||||||||||
| 2014 |
2013 |
2014 |
2013 |
|||||||||||||
| Revenue: |
$ |
178,330 |
$ |
133,475 |
$ |
369,931 |
$ |
264,325 |
||||||||
| Direct costs |
124,842 |
80,906 |
230,442 |
145,290 |
||||||||||||
| 53,488 |
52,569 |
139,489 |
119,034 |
|||||||||||||
| Operating Expenses: |
||||||||||||||||
| Selling, General and Administration |
846,914 |
917,640 |
1,610,343 |
1,911,620 |
||||||||||||
| Investor Relations |
258,174 |
60,127 |
481,268 |
116,016 |
||||||||||||
| Stock-based compensation |
373,592 |
384,700 |
732,028 |
785,294 |
||||||||||||
| Research and development |
106,729 |
2,821 |
181,658 |
16,111 |
||||||||||||
| Depreciation and amortization |
102,272 |
139,208 |
165,214 |
306,899 |
||||||||||||
| Total Operating Expenses |
1,687,681 |
1,504,496 |
3,170,612 |
3,135,941 |
||||||||||||
| Operating Income (Loss) |
(1,634,193) |
(1,451,927) |
(3,031,124) |
(3,016,906) |
||||||||||||
| Other Income and (Expense): |
||||||||||||||||
| Interest |
(81) |
21 |
283 |
353 |
||||||||||||
| Total Other Income (Expense) |
(81) |
21 |
283 |
353 |
||||||||||||
| Net Income (Loss) before tax benefit |
(1,634,274) |
(1,451,906) |
(3,030,841) |
(3,016,554) |
||||||||||||
| Provision for Income Taxes |
||||||||||||||||
| Net Income (Loss) |
(1,634,274) |
(1,451,906) |
$ |
(3,030,841) |
$ |
(3,016,554) |
||||||||||
| Net Loss per share: |
||||||||||||||||
| Basic and diluted |
$ |
(.05) |
$ |
(.07) |
$ |
(0.11) |
$ |
(0.15) |
||||||||
| Weighted average common shares: |
||||||||||||||||
| Basic and diluted |
32,071,717 |
20,900,099 |
28,857,493 |
20,493,277 |
||||||||||||
SOURCE MagneGas Corporation
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