MagneGas Reports Financial Results For Third Quarter 2014
TAMPA, Fla., Nov. 10, 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 September 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 third quarter of 2014 was marked by solid progress towards our objectives. We continued to obtain third party verification of our processes including receiving confirmation by the EPA that our system achieves Class A manure treatment requirements. We also worked with several stakeholders to establish platforms to test, process, and market liquid waste sterilization systems. We launched our new MagneGas2® fuel made from renewable waste and we signed an agreement to purchase a gas distribution company in Florida," stated Ermanno Santilli, CEO of MagneGas. "We also received confirmation by the New York City Fire Department that it is in final testing of MagneGas® as a replacement to acetylene and launched our new MagneTote™ gas storage system for fire departments. Overall, I am pleased that we advanced all facets of our strategy while controlling costs and increasing revenues."
September 30, 2014
- Revenues for the nine months ended September 30, 2014 increased 32% over the same period in 2013 and were $516,331 and $391,698, respectively;
- Operating Expenses (excluding non-cash items) decreased 3.6% from $2,712,568 for the nine months ended September 30, 2014 versus $2,860,546 during the same period in 2013;
- The Company had an ending cash balance of $5,113,791 on September 30, 2014 versus $216,523 on December 31, 2013.
Business Highlights
The Company continued to execute on its strategy focused on fuel sales, equipment sterilization sales and co-combustion research and development. Business highlights of the third quarter included:
- Launch of the new MagneGas2® fuel made from renewable waste;
- Signature of definitive agreements for the purchase of a gas distribution company;
- Confirmation by the Fire Department of New York that it is in the final stages of testing MagneGas® as a replacement to acetylene;
- Signature of a Memorandum of Understanding with a major hog farm which produces 40,000 hogs per year, to create a platform for the testing, processing and marketing of the MagneGas liquid sterilization system;
- Filing of a definitive patent on the Company's new fuel and system design;
- Introduction of the new MagneTote™ gas storage system for fire departments;
- Hiring of two new consultants to assist with marketing and implementation of potential military uses of MagneGas fuel and equipment;
- Signature of agreement with Georgia Tech for testing of advanced MagneGas® fuel uses.
September 30, 2014 Financial Results
For the nine months ended September 30, 2014, revenues were $516,331, as compared to $391,698 for the same period in 2013. Metal cutting revenue was up at $391,991 for the nine months ended September 30, 2014, as compared to $321,699 for the nine months ended September 30, 2013. Metal cutting revenue was up primarily due to the addition of new customers and a shift in focus to fabrication industries. 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 9% from $4,690,376 for the nine months ended September 30, 2013 to $5,125,100 for the nine months ended September 30, 2014. Operating Expenses (excluding non-cash items) decreased 3.6% from $2,712,568 for the nine months ended September 30, 2014 versus $2,860,546 during the same period in 2013. 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 $1,180,021 for the nine months ended September 30, 2013 to $1,112,563 for the nine months ended September 30, 2014. The Company had an operating loss of $4,935,903 for the nine months ended September 30, 2013, as compared to an operating loss of $4,487,390 for the nine months ended September 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 |
||||||||
| September 30, |
December 31, |
|||||||
| 2014 |
2013 |
|||||||
| (Unaudited) |
(Audited) |
|||||||
| Assets |
||||||||
| Current Assets |
||||||||
| Cash and cash equivalents |
$ |
5,113,791 |
$ |
216,523 |
||||
| Accounts receivable, net of allowance for doubtful accounts of $77,311 and $83,069, respectively |
72,888 |
125,930 |
||||||
| Inventory, at cost |
1,881,154 |
1,710,066 |
||||||
| Prepaid and other current assets |
400,690 |
46,473 |
||||||
| Total Current Assets |
7,468,523 |
2,098,992 |
||||||
| Property and equipment, net of accumulated depreciation of $895,198 and $661,744, respectively |
5,951,932 |
5,306,152 |
||||||
| Intangible assets, net of accumulated amortization of $284,797 and $248,446, respectively |
494,754 |
482,824 |
||||||
| Investment in joint ventures |
690,410 |
490,410 |
||||||
| Security deposits |
10,654 |
8,568 |
||||||
| Total Assets |
$ |
14,616,273 |
$ |
8,386,946 |
||||
| Liabilities and Stockholders' Equity |
||||||||
| Current Liabilities |
||||||||
| Accounts payable |
$ |
145,612 |
$ |
231,008 |
||||
| Accrued expenses |
347,426 |
341,579 |
||||||
| Deferred revenue |
69,999 |
139,998 |
||||||
| Customer Deposits |
0 |
39,341 |
||||||
| Total Current Liabilities |
563,037 |
751,926 |
||||||
| Note payable-(Long Term) |
520,000 |
0 |
||||||
| Total Liabilities |
$ |
1,083,037 |
$ |
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; 33,581,757 and 23,259,109 issued and outstanding, respectively |
33,582 |
23,259 |
||||||
| Additional paid-in capital |
36,987,318 |
26,163,522 |
||||||
| Accumulated deficit |
(23,488,664) |
(18,552,761) |
||||||
| Total Stockholders' Equity |
13,533,236 |
7,635,020 |
||||||
| Total Liabilities and Stockholders' Equity |
$ |
14,616,273 |
$ |
8,386,946 |
||||
| The accompanying notes are an integral part of the financial statements |
||||||||
| MagneGas Corporation |
||||||||||||||||
| Statements of Operations |
||||||||||||||||
| (Unaudited) |
||||||||||||||||
| Three Months Ended |
Nine Months Ended |
|||||||||||||||
| September 30, |
September 30, |
|||||||||||||||
| 2014 |
2013 |
2014 |
2013 |
|||||||||||||
| Revenue: |
$ |
146,400 |
$ |
125,410 |
$ |
516,331 |
$ |
391,698 |
||||||||
| Direct costs |
98,484 |
84,994 |
328,943 |
235,032 |
||||||||||||
| 47,916 |
40,416 |
187,388 |
156,666 |
|||||||||||||
| Operating Expenses: |
||||||||||||||||
| Selling, General and Administration |
1,037,637 |
954,002 |
2,647,949 |
2,894,629 |
||||||||||||
| Investor Relations |
307,288 |
38,059 |
788,657 |
119,704 |
||||||||||||
| Stock-based compensation |
380,535 |
394,727 |
1,112,563 |
1,180,021 |
||||||||||||
| Research and development |
124,351 |
59,622 |
306,010 |
75,733 |
||||||||||||
| Depreciation and amortization |
104,707 |
113,390 |
269,921 |
420,289 |
||||||||||||
| Total Operating Expenses |
1,954,518 |
1,559,799 |
5,125,100 |
4,690,376 |
||||||||||||
| Operating Income (Loss) |
(1,906,602) |
(1,519,383) |
(4,937,712) |
(4,533,710) |
||||||||||||
| Other Income and (Expense): |
901 |
45,964 |
1,423 |
45,964 |
||||||||||||
| Interest |
0 |
3 |
386 |
356 |
||||||||||||
| Total Other Income (Expense) |
901 |
45,967 |
1,809 |
46,320 |
||||||||||||
| Net Income (Loss) before tax benefit |
(1,905,701) |
(1,473,416) |
(4,935,903)) |
(4,487,390) |
||||||||||||
| Provision for Income Taxes |
||||||||||||||||
| Net Income (Loss) |
(1,905,701) |
(1,473,416) |
$ |
(4,935,903)) |
$ |
(4,487,390) |
||||||||||
| Net Loss per share: |
||||||||||||||||
| Basic and diluted |
$ |
(0.06) |
$ |
(0.06) |
$ |
(0.16) |
$ |
(0.21) |
||||||||
| Weighted average common shares: |
||||||||||||||||
| Basic and diluted |
33,315,633 |
22,920,592 |
30,359,870 |
21,311,007 |
||||||||||||
| The accompanying notes are an integral part of the financial statements. |
||||||||||||||||
SOURCE MagneGas Corporation
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