Tecogen Announces Fourth Quarter and Year-End 2024 Results

Rhea-AI Summary

Tecogen Inc. (OTCQX:TGEN) reported Q4 2024 financial results with revenues of $6.08 million, up 3.0% from $5.90 million in Q4 2023. The company posted a net loss of $1.19 million, improved from $1.85 million loss in the same period last year.

Key highlights include:

• Gross margin increased to 45.0% in Q4 2024 from 39.8% in Q4 2023
• Cash balance of $5.41 million as of December 31, 2024
• Operating expenses decreased by 7.0% to $3.87 million
• Services revenue grew 13.7% to $4.08 million

The company announced a global partnership with Vertiv and secured an InVerde project with a Connecticut data center. Full-year 2024 results showed total revenue of $22.62 million, down 10.0% from 2023, primarily due to manufacturing facility relocation impact in Q2-Q3 2024.

Positive

• Net loss decreased by $0.66M in Q4 2024 compared to Q4 2023
• Gross margin improved to 45.0% from 39.8% year-over-year
• Services revenue grew 13.7% to $4.08M in Q4 2024
• Operating expenses reduced by 7.0% to $3.87M
• Strong cash position of $5.41M at year-end
• Secured new data center project and global partnership with Vertiv

Negative

• Full-year revenue declined 10.0% to $22.62M in 2024
• Products revenue decreased 18.3% in Q4 2024
• Net loss for full-year 2024 increased to $4.76M from $4.60M in 2023
• Negative Adjusted EBITDA of $0.69M in Q4 2024
• $0.22M goodwill impairment charge recorded

NORTH BILLERCA, MA / ACCESS Newswire / March 17, 2025 / Tecogen Inc. (OTCQX:TGEN), a leading manufacturer of clean energy products, reported revenues of $6.08 million and net loss of $1.19 million for the quarter ended December 31, 2024 compared to revenues of $5.90 million, and a net loss of $1.85 million in 2023. We generated $4.06 million in cash from operations and used $0.97 million in cash to acquire property plant and equipment, principally the improvements required at our North Billerica facility, during the year ended December 31, 2024. Our cash balance was $5.41 million at December 31, 2024, which reflects $1.0 million of additional funding provided by related parties during 2024 and increased customer deposits received in the quarter ended December 31, 2024.

Abinand Rangesh, CEO of Tecogen, reported that "there have been multiple exciting developments at Tecogen. We recently signed a global partnership with Vertiv, we closed an InVerde project with a small data center in CT, and our backlog is strong. We were also successful in collecting substantial customer deposits, so we finished the year with >$5m in cash, placing us in a favorable position to grow. Our overall gross profit margin also expanded by 5% points to 45%. During my last call, I had forecast sequential improvements in revenue starting at >$6m for Q4, which we have achieved. I also forecast a small data center project closing in the first quarter of 2025, which we have achieved. The data center in CT chose our InVerde as the superior option after comparing it against alternatives, showing our products have tremendous potential for data centers. During this upcoming call I will provide more context for the data center strategy and why we are so excited about partnering with Vertiv."

Key Takeaways

Net Loss and Earnings Per Share

• Net loss for the quarter ended December 31, 2024 was $1.19 million compared to a net loss of $1.85 million for the same period of 2023, a decrease of $0.66 million, due to increased gross profit from our Products and Services segments and decreased operating expenses in 2024. EPS for the quarter ended December 31, 2024 and 2023 was a loss of $0.05/share and $0.07/share, respectively.

• Net loss for the year ended December 31, 2024 was $4.76 million compared to a net loss of $4.60 million in 2023, an increase of $0.16 million, due to decreased revenue and gross profit for our Products segment due to the relocation of our manufacturing operations to our new facility in April 2024 and the $0.22 million goodwill impairment, offset by decreased operating expenses in 2024. EPS for the year ended December 31, 2024 and 2023 was a loss of $0.19/share for both years.

Loss from Operations

• Loss from operations for the quarter ended December 31, 2024 was $1.14 million compared to a loss from operations of $1.82 million for the same period in 2023, a decrease of $0.68 million, due to increased gross profit from our Products and Services segments and decreased operating expenses.

• Loss from operations for the year ended December 31, 2024 was $4.53 million compared to a loss from operations of $4.41 million for the same period in 2023, an increase of $0.12 million, due to decreased revenue and gross profit for our Products segment due to the relocation of our manufacturing operations to our new facility in April 2024 and the $0.22 million goodwill impairment, offset by decreased operating expenses.

Revenues

• Revenues for the quarter ended December 31, 2024 were $6.08 million compared to $5.90 million for the same period in 2023, a 3.0% increase.

  • Products revenues in the quarter ended December 31, 2024 were $1.44 million compared to $1.77 million for the same period in 2023, a decrease of 18.3%. The decrease in revenue during the quarter ended December 31, 2024 is due to a reduction in cogeneration and engineered accessory revenue.

  • Services revenues in the quarter ended December 31, 2024 were $4.08 million, compared to $3.59 million for the same period in 2023, an increase of 13.7% due to a $0.42 million increase in revenues from existing contracts and a $0.07 million increase in revenues from the acquired Aegis maintenance contracts.

  • Energy Production revenues in the quarter ended December 31, 2024 were $550 thousand compared to $542 thousand for the same period in 2023, an increase of 1.6%. The increase in Energy Production revenue is due to increased run hours at certain energy production sites.

• Revenues for the year ended December 31, 2024 were $22.62 million compared to $25.14 million for the same period in 2023, a decrease of 10.0% year over year.

  • Products revenues in the year ended December 31, 2024 were $4.44 million compared to $8.86 million for the same period in 2023, a decrease of 49.8%. The decrease in revenue during the year ended December 31, 2024 is due to the relocation of our manufacturing operations to our new facility in April 2024, which necessitated construction activities to install equipment test cells and comply with local regulations, significantly reducing our production capacity during the second and a portion of the the third quarter. We resumed manufacturing operations during the third quarter of 2024.

  • Services revenues in the year ended December 31, 2024 were $16.07 million compared to $14.52 million for the same period in 2023, an increase of 10.7%. The increase in revenue during the year ended December 31, 2024 is due to the addition of $0.79 million in revenues from the acquired Aegis maintenance contracts, and a $0.76 million increase in service contract revenues from existing contracts.

  • Energy Production revenues in the year ended December 31, 2024 were $2.10 million, compared to $1.76 million for the same period in 2023, an increase of 19.6%. The increase in Energy Production revenue is due to increased run hours at certain energy production sites.

Gross Profit

• Gross profit for the quarter ended December 31, 2024 was $2.73 million compared to $2.35 million in the same period in 2023. Gross margin increased to 45.0% in the quarter ended December 31, 2024 compared to 39.8% for the same period in 2023. The increase in gross margin was driven by lower provisions for obsolete inventory in the quarter ended December 31, 2024 and improved Energy Production margins.

• Gross profit for the year ended December 31, 2024 was $9.87 million compared to $10.20 million in the same period of 2023. Gross margin increased to 43.6% in the year ended December 31, 2024 compared to 40.6% for the same period in 2023. The increase in gross margin was due to improved Services margins and lower provisions for obsolete inventory in the year ended December 31, 2024.

Operating Expenses

• Operating expenses decreased $0.29 million, or 7.0%, to $3.87 million in the quarter ended December 31, 2024 compared to $4.16 million in the same period in 2023, due to decreased credit loss expense in 2024, offset partially by the $0.22 million goodwill impairment.

• Operating expenses decreased $0.21 million, or 1.4%, to $14.40 million in the year ended December 31, 2024 compared to $14.62 million in the same period in 2023 due to decreased credit loss expense, offset partially by the $0.22 million goodwill impairment and a general increase in other operating expense in 2024 .

Adjusted EBITDA was negative $0.69 million for the quarter ended December 31, 2024 compared to negative $0.53 million for the quarter ended December 31, 2024. Adjusted EBITDA was negative $3.63 million for the year ended December 31, 2024 compared to negative $2.58 million for the year ended December 31, 2024. (Adjusted EBITDA is defined as net income or loss attributable to Tecogen, adjusted for interest, income taxes, depreciation and amortization, stock-based compensation expense, unrealized gain or loss on investment securities, goodwill impairment charges and other non-cash non-recurring charges or gains including abandonment of intangible assets and asset impairment. See the table following the Condensed Consolidated Statements of Operations for a reconciliation from net income (loss) to Adjusted EBITDA, as well as important disclosures about the Company's use of Adjusted EBITDA).

Conference Call Scheduled for March 18, 2025, at 9:30 am ET

Tecogen will host a conference call on March 18, 2025 to discuss the fourth quarter results beginning at 9:30 am eastern time. To listen to the call please dial (877) 407-7186 within the U.S. and Canada, or +1 (201) 689-8052 from other international locations. Participants should ask to be joined to the Tecogen Fourth Quarter and Year-End 2024 earnings call. Please begin dialing 10 minutes before the scheduled starting time. The earnings press release will be available on the Company website at www.Tecogen.com in the "News and Events" section under "About Us." The earnings conference call will be webcast live. To view the associated slides, register for and listen to the webcast, go to https://ir.tecogen.com/ir-calendar. Following the call, the recording will be archived for 14 days.

The earnings conference call will be recorded and available for playback one hour after the end of the call. To listen to the playback, dial (877) 660-6853 within the U.S. and Canada, or (201) 612-7415 from other international locations and use Conference Call ID#: 13752231.

About Tecogen

Tecogen Inc. designs, manufactures, sells, installs, and maintains high efficiency, ultra-clean, cogeneration products including engine-driven combined heat and power, air conditioning systems, and high-efficiency water heaters for residential, commercial, recreational and industrial use. The company provides cost effective, environmentally friendly and reliable products for energy production that nearly eliminate criteria pollutants and significantly reduce a customer's carbon footprint. In business for over 35 years, Tecogen has shipped more than 3,200 units, supported by an established network of engineering, sales, and service personnel in key markets in North America. For more information, please visit www.tecogen.com or contact us for a free Site Assessment.

Forward Looking Statements

This press release and any accompanying documents, contain "forward-looking statements" which may describe strategies, goals, outlooks or other non-historical matters, or projected revenues, income, returns or other financial measures, that may include words such as "believe," "expect," "anticipate," "intend," "plan," "estimate," "project," "target," "potential," "will," "should," "could," "likely," or "may" and similar expressions intended to identify forward-looking statements. These statements are only predictions and involve known and unknown risks, uncertainties, and other factors that may cause our actual results to differ materially from those expressed or implied by such forward-looking statements. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Forward-looking statements speak only as of the date on which they are made, and we undertake no obligation to update or revise any forward-looking statements.

In addition to those factors described in our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q and on our Form 8-K, under "Risk Factors", among the factors that could cause actual results to differ materially from past and projected future results are the following: fluctuations in demand for our products and services, competing technological developments, issues relating to research and development, the availability of incentives, rebates, and tax benefits relating to our products and services, changes in the regulatory environment relating to our products and services, integration of acquired business operations, and the ability to obtain financing on favorable terms to fund existing operations and anticipated growth.

In addition to GAAP financial measures, this press release includes certain non-GAAP financial measures, including adjusted EBITDA which excludes certain expenses as described in the presentation. We use Adjusted EBITDA as an internal measure of business operating performance and believe that the presentation of non-GAAP financial measures provides a meaningful perspective of the underlying operating performance of our current business and enables investors to better understand and evaluate our historical and prospective operating performance by eliminating items that vary from period to period without correlation to our core operating performance and highlights trends in our business that may not otherwise be apparent when relying solely on GAAP financial measures.

Tecogen Media & Investor Relations Contact Information:

Abinand Rangesh
P: 781-466-6487
E: Abinand.Rangesh@tecogen.com

TECOGEN INC.
CONSOLIDATED BALANCE SHEETS
(unaudited)

		December 31, 2024				December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents		$	5,405,233			$	1,351,270
Accounts receivable, net			6,026,545				6,781,484
Unbilled revenue			398,898				1,258,532
Inventories, net			9,634,005				10,553,419
Prepaid and other current assets			680,565				360,639
Total current assets			22,145,246				20,305,344
Long-term assets:
Property, plant and equipment, net			1,738,036				1,162,577
Right of use assets - operating leases			1,730,358				743,096
Right of use assets - finance leases			452,390				200,187
Intangible assets, net			2,513,189				2,436,230
Goodwill			2,346,566				2,743,424
Other assets			166,474				201,771
TOTAL ASSETS		$	31,092,259			$	27,792,629
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Related party notes payable		$	1,548,872			$	505,505
Accounts payable			4,142,678				4,514,415
Accrued expenses			2,890,886				2,504,629
Deferred revenue, current			6,701,131				1,647,206
Operating lease obligations, current			430,382				248,933
Finance lease obligations, current			85,646				40,540
Acquisition liabilities, current			902,552				845,363
Unfavorable contract liability, current			113,449				176,207
Total current liabilities			16,815,596				10,482,798
Long-term liabilities:
Deferred revenue, net of current portion			1,165,951				369,611
Operating lease obligations, net of current portion			1,341,789				523,660
Finance lease obligations, net of current portion			325,235				159,647
Acquisition liabilities, net of current portion			1,008,760				1,181,779
Unfavorable contract liability, net of current portion			309,390				422,839
Total liabilities			20,966,721				13,140,334
Commitments and contingencies
Stockholders' equity:
Tecogen Inc. stockholders' equity:
Common stock, $0.001 par value; 100,000,000 shares authorized; 24,950,261 issued and outstanding at December 31, 2024 and 24,850,261 shares issued and outstanding at December 31, 2023			24,950				24,850
Additional paid-in capital			57,845,289				57,601,402
Accumulated deficit			(47,639,894	)			(42,879,656	)
Total Tecogen Inc. stockholders' equity			10,230,345				14,746,596
Non-controlling interest			(104,807	)			(94,301	)
Total stockholders' equity			10,125,538				14,652,295
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$	31,092,259			$	27,792,629

TECOGEN INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)

		Three Months Ended
		December 31, 2024				December 31, 2023
Revenues
Products		$	1,441,909			$	1,765,390
Services			4,083,492				3,591,310
Energy production			550,121				541,613
Total revenues			6,075,522				5,898,313
Cost of sales
Products			995,921				1,422,325
Services			2,009,762				1,749,347
Energy production			335,392				377,379
Total cost of sales			3,341,075				3,549,051
Gross profit			2,734,447				2,349,262
Operating expenses
General and administrative			2,928,287				3,461,807
Selling			503,145				504,716
Research and development			226,843				214,320
(Gain) loss on disposition of assets			(4,111	)			(16,257	)
Goodwill impairment			217,295				-
Total operating expenses			3,871,459				4,164,586
Loss from operations			(1,137,012	)			(1,815,324	)
Other income (expense)
Other income (expense), net			(11,509	)			(24,442	)
Interest expense			(30,762	)			(7,421	)
Unrealized gain (loss) on investment securities			-				18,749
Total other income (expense), net			(42,271	)			(13,114	)
Loss before provision for state income taxes			(1,179,283	)			(1,828,438	)
Provision for state income taxes			465				239
Consolidated net loss			(1,179,748	)			(1,828,677	)
Income attributable to the non-controlling interest			(6,319	)			(17,720	)
Loss attributable to Tecogen Inc.		$	(1,186,067	)		$	(1,846,397	)
Net loss per share - basic		$	(0.05	)		$	(0.07	)
Net loss per share - diluted		$	(0.05	)		$	(0.07	)
Weighted average shares outstanding - basic			24,893,739				24,850,261
Weighted average shares outstanding - diluted			24,893,739				24,850,261

		Three Months Ended
		December 31, 2024				December 31, 2023
Non-GAAP financial disclosure (1)
Net loss attributable to Tecogen Inc.		$	(1,186,067	)		$	(1,846,397	)
Interest expense, net			30,762				7,421
Income taxes			465				239
Depreciation & amortization, net			134,039				107,933
EBITDA			(1,020,801	)			(1,730,804	)
Stock-based compensation			41,082				75,683
Unrealized loss on securities			-				(18,749	)
Inventory write down			70,530				402,883
Credit loss provision			-				744,248
Goodwill impairment			217,295				-
Adjusted EBITDA		$	(691,894	)		$	(526,739	)

TECOGEN INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)

		Years Ended
		December 31, 2024				December 31, 2023
Revenues
Products		$	4,443,996			$	8,859,946
Services			16,074,870				14,523,054
Energy production			2,100,670				1,756,419
Total revenues			22,619,536				25,139,419
Cost of sales
Products			3,014,655				5,923,096
Services			8,432,876				7,909,202
Energy production			1,301,832				1,105,503
Total cost of sales			12,749,363				14,937,801
Gross profit			9,870,173				10,201,618
Operating expenses
General and administrative			11,356,406				11,880,389
Selling			1,880,903				1,931,037
Research and development			961,837				840,011
Gain on sale of assets			(12,181	)			(36,207	)
Goodwill impairment			217,295				-
Total operating expenses			14,404,260				14,615,230
Loss from operations			(4,534,087	)			(4,413,612	)
Other income (expense)
Interest and other income (expense), net			(26,814	)			(61,003	)
Interest expense			(90,304	)			(16,050	)
Total other income (expense), net			(117,118	)			(77,053	)
Loss before provision for state income taxes			(4,651,205	)			(4,490,665	)
Provision for state income taxes			22,565				32,491
Consolidated net loss			(4,673,770	)			(4,523,156	)
Income attributable to non-controlling interest			(86,468	)			(74,952	)
Net loss attributable to Tecogen Inc.		$	(4,760,238	)		$	(4,598,108	)
Net loss per share - basic		$	(0.19	)		$	(0.19	)
Net loss per share - diluted		$	(0.19	)		$	(0.19	)
Weighted average shares outstanding - basic			24,861,190				24,850,261
Weighted average shares outstanding - diluted			24,861,190				24,850,261

		Years Ended
		December 31, 2024				December 31, 2023
Non-GAAP financial disclosure (1)
Net income loss attributable to Tecogen Inc.		$	(4,760,238	)		$	(4,598,108	)
Interest expense			90,304				16,050
Provision for income taxes			22,565				32,491
Depreciation & amortization, net			553,783				567,712
EBITDA			(4,093,586	)			(3,981,855	)
Stock-based compensation			172,987				250,394
Credit loss provision			-				744,248
Inventory writedown			70,530				402,883
Goodwill impairment			217,295				-
Adjusted EBITDA		$	(3,632,774	)		$	(2,584,330	)

⁽¹⁾ Non-GAAP Financial Measures

In addition to reporting net income, a U.S. generally accepted accounting principle ("GAAP") measure, this news release contains information about Adjusted EBITDA (net income (loss) attributable to Tecogen Inc adjusted for interest, income taxes, depreciation and amortization, stock-based compensation expense, unrealized gain or loss on investment securities, goodwill impairment charges and other non-cash non-recurring charges including abandonment of certain intangible assets), which is a non-GAAP measure. The Company believes Adjusted EBITDA allows investors to view its performance in a manner similar to the methods used by management and provides additional insight into its operating results. Adjusted EBITDA is not calculated through the application of GAAP. Accordingly, it should not be considered as a substitute for the GAAP measure of net income and, therefore, should not be used in isolation of, but in conjunction with, the GAAP measure. The use of any non-GAAP measure may produce results that vary from the GAAP measure and may not be comparable to a similarly defined non-GAAP measure used by other companies.

TECOGEN INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)

		Years Ended
		December 31, 2024				December 31, 2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Consolidated loss		$	(4,673,770	)		$	(4,523,156	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation, accretion and amortization, net			553,783				567,712
Gain on sale of assets			(12,181	)			(36,207	)
Provision for credit losses			146,010				902,432
Provision for inventory reserve			70,530				402,883
Stock-based compensation			172,987				250,394
Goodwill impairment			217,295				-
Non-cash interest expense			45,025				5,505
Changes in operating assets and liabilities:
(Increase) decrease in:
Accounts receivable			608,929				(81,195	)
Inventory, net			848,884				(82,525	)
Unbilled revenue			859,634				56,994
Prepaid expenses and other current assets			(319,926	)			40,550
Other non-current assets			510,723				265,725
Increase (decrease) in:
Accounts payable			(371,736	)			1,161,416
Accrued expenses			386,257				128,869
Deferred revenue			5,850,265				543,842
Other current liabilities			(832,162	)			(421,049	)
Net cash provided by (used in) operating activities			4,060,547				(817,810	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment			(969,163	)			(46,851	)
Proceeds on sale of property and equipment			51,400				34,655
Payment for business acquisition			-				(170,000	)
Distributions to noncontrolling interest			(96,974	)			(62,693	)
Net used in investing activities			(1,014,737	)			(244,889	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from related party note			1,000,000				500,000
Finance lease principal payments			(62,847	)			-
Proceeds from exercise of stock options			71,000				-
Net cash provided by financing activities			1,008,153				500,000
Change in cash and cash equivalents			4,053,963				(562,699	)
Cash and cash equivalents, beginning of the year			1,351,270				1,913,969
Cash and cash equivalents, end of the year		$	5,405,233			$	1,351,270
Supplemental disclosure of cash flow information:
Cash paid for interest		$	45,278			$	10,926
Cash paid for taxes		$	22,565			$	32,491
Non-cash investing activities
Right-of-use assets acquired under operating leases		$	1,650,994			$	148,093
Right-of-use assets acquired under finance leases		$	295,085			$	200,187
Aegis acquisition:
Accounts receivable credit		$	-			$	300,000
Accounts payable assumed			-				91,048
Contingent consideration			272,901				1,256,656
Total fair value of non-cash consideration		$	272,901			$	1,647,704

SOURCE: Tecogen, Inc.

View the original press release on ACCESS Newswire

FAQ

What were Tecogen's (TGEN) Q4 2024 revenue and net loss figures?

Tecogen reported Q4 2024 revenue of $6.08 million and a net loss of $1.19 million, compared to revenue of $5.90 million and a net loss of $1.85 million in Q4 2023.

How did TGEN's gross margin perform in Q4 2024?

Gross margin improved to 45.0% in Q4 2024, up from 39.8% in Q4 2023, driven by lower provisions for obsolete inventory and improved Energy Production margins.

What caused TGEN's revenue decline in 2024?

The 10.0% annual revenue decline was primarily due to manufacturing operations relocation to a new facility in April 2024, which significantly reduced production capacity during Q2 and part of Q3.

What were the key business developments for TGEN in Q4 2024?

TGEN signed a global partnership with Vertiv, secured an InVerde project with a CT data center, and ended the year with over $5M in cash balance.

How did TGEN's services segment perform in Q4 2024?

Services revenue increased 13.7% to $4.08 million, driven by $0.42M growth from existing contracts and $0.07M from acquired Aegis maintenance contracts.