EX-99.02
10
a9902proformafinancialstat.htm
EXHIBIT 99.02
Exhibit
Exhibit 99.02 - Pro Forma Financials
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
On December 14, 2018 and March 5, 2019, Tecogen Inc. ("the Company") completed the sales of its interests in two and six agreements, respectively, and associated assets (collectively "the assets") relating to the generation and sale of energy to an unrelated third party in exchange for $2.0 million and $5.0 million, cash, respectively. The following unaudited pro forma condensed consolidated financial statements have been derived by the application of pro forma adjustments to the Company's historical consolidated financial statements, which have been presented to give effect to the dispositions of the assets. The unaudited pro forma condensed consolidated balance sheet as of September 30, 2018 is presented as if the dispositions had occurred as of September 30, 2018. The unaudited pro forma condensed consolidated statement of operations for the nine months ended September 30, 2018 is presented as if the dispositions had occurred on January 1, 2018. The unaudited pro forma condensed consolidated statement of operations for the year ended December 31, 2017 is presented as if the dispositions had occurred on May 18, 2017, the date the assets were acquired as part of a larger acquisition. The unaudited pro forma condensed consolidated balance sheet and statements of operations for these respective periods are being provided for illustrative purposes only and do not purport to represent what our results of operations or financial position would have been if the transactions had occurred on the dates indicated and are not intended to project our results of operations or financial position for any future period. Any of the factors underlying these estimates and assumptions may change or prove to be materially different and the estimates and assumptions may not be representative of facts that existed upon completion of the dispositions.
The unaudited pro forma adjustments are based on estimates, available information and certain assumptions that the Company believes are reasonable. The unaudited pro forma adjustments and primary assumptions are described in the accompanying notes. The unaudited pro forma condensed consolidated financial statements and the related notes should be read in conjunction with the historical consolidated financial statements and accompanying notes of Tecogen Inc. included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017 and the Company's Quarterly Report on Form 10-Q for the period ended September 30, 2018.
Exhibit 99.02 - Pro Forma Financials
TECOGEN INC.
Pro Forma Condensed Consolidated Balance Sheet
As of September 30, 2018
(Unaudited)
Tecogen Inc.
Dispositions of
Pro Forma
Historical
Assets
Adjustments
Notes
Pro Forma
Cash and cash equivalents
$
136,717
$
-
$
7,000,000
(a)
$
7,136,717
Accounts receivable, net
11,548,663
-
-
11,548,663
Unbilled revenue
4,441,565
-
-
4,441,565
Inventory, net
5,983,067
-
-
5,983,067
Prepaid and other currents assets
815,269
-
-
815,269
Total current assets
22,925,281
-
7,000,000
29,925,281
Property, plant and equipment, net
11,107,509
(6,825,539
)
-
(b)
4,281,970
Intangible assets, net
2,935,279
(1,341,584
)
-
(b)
1,593,695
Goodwill
13,365,655
-
-
13,365,655
Other assets
427,810
-
-
427,810
Total assets
$
50,761,534
$
(8,167,123
)
$
7,000,000
$
49,594,411
Revolving line of credit, bank
$
1,708,888
$
-
$
-
$
1,708,888
Accounts payable
5,716,426
-
-
5,716,426
Accrued expenses
2,196,921
-
591,000
(c)
2,787,921
Deferred revenue
1,718,376
-
-
1,718,376
Total current liabilities
11,340,611
-
-
11,931,611
Deferred revenue, net of current portion
343,031
-
-
343,031
Unfavorable contract liability, net
6,534,074
(3,372,337
)
-
(b)
3,161,737
Total liabilities
18,217,716
(3,372,337
)
-
15,436,379
Common stock
24,819
-
-
24,819
Additional paid-in capital
56,371,583
-
-
56,371,583
Accumulated deficit
(24,298,191
)
-
1,614,214
(d)
(22,683,977
)
Total Tecogen Inc. stockholders' equity
32,098,211
-
1,614,214
33,712,425
Noncontrolling interest
445,607
-
-
445,607
Total stockholders' equity
32,543,818
-
1,614,214
34,158,032
Total liabilities and stockholders' equity
$
50,761,534
$
(3,372,337
)
$
1,614,214
$
49,594,411
The accompanying notes are an integral part of the unaudited pro forma condensed consolidated financial statements.
Exhibit 99.02 - Pro Forma Financials
TECOGEN INC.
Pro Forma Condensed Consolidated Statement of Operations
Nine Months Ended September 30, 2018
(Unaudited)
Tecogen Inc.
Dispositions of
Historical
Assets
Pro Forma
Net sales and gross revenues
$
26,567,276
$
(2,037,868
)
$
24,529,408
Cost and expenses applicable to sales and revenues
16,686,781
(1,387,453
)
15,299,328
Gross profit
9,880,495
(650,415
)
9,230,080
Selling, general and administrative expenses
10,015,085
-
10,015,085
Research and development
993,102
-
993,102
Loss from operations
(1,127,692
)
(650,415
)
(1,778,107
)
Interest and other income
7,926
-
7,926
Interest expense
(56,195
)
-
(56,195
)
Unrealized loss on investment securities
(59,042
)
-
(59,042
)
Loss from continuing operations before income taxes
(1,235,003
)
(650,415
)
(1,885,418
)
Provision for income taxes on continuing operations
42,679
-
42,679
Net loss from continuing operations
(1,277,682
)
(650,415
)
(1,928,097
)
Income attributable to the noncontrolling interest
(58,946
)
-
(58,946
)
Net loss attributable Tecogen Inc. shareholders
$
(1,336,628
)
$
(650,415
)
$
(1,987,043
)
Per common share data:
Net loss per share - basic and diluted
$
(0.05
)
$
(0.08
)
Weighted average shares outstanding - basic and diluted
24,813,936
24,813,936
The accompanying notes are an integral part of the unaudited pro forma condensed consolidated financial statements.
Exhibit 99.02 - Pro Forma Financials
TECOGEN INC.
Pro Forma Condensed Consolidated Statement of Operations
Year Ended December 31, 2017
(Unaudited)
Tecogen Inc.
Dispositions of
Historical
Assets
Pro Forma
Net sales and gross revenues
$
33,202,666
$
(1,707,016
)
$
31,495,650
Cost and expenses applicable to sales and revenues
20,248,262
(1,094,566
)
19,153,696
Gross profit
12,954,404
(612,450
)
12,341,954
Selling, general and administrative expenses
11,792,323
-
11,792,323
Research and development
936,929
-
936,929
Income (loss) from operations
225,152
(612,450
)
(387,298
)
Interest and other income
27,626
-
27,626
Interest expense
(155,082
)
-
(155,082
)
Income (loss) from continuing operations before income taxes
97,696
(612,450
)
(514,754
)
Provision for income taxes on continuing operations
-
-
-
Net income (loss) from continuing operations
97,696
(612,450
)
(514,754
)
Income attributable to the noncontrolling interest
(50,260
)
-
(50,260
)
Net income (loss) attributable Tecogen Inc. shareholders
$
47,436
$
(612,450
)
$
(565,014
)
Per common share data:
Net income (loss) per share - basic
$
-
$
(0.02
)
Net income (loss) per share - diluted
$
-
$
(0.02
)
Weighted average shares outstanding - basic
23,171,033
23,171,033
Weighted average shares outstanding - diluted
23,342,627
23,171,033
The accompanying notes are an integral part of the unaudited pro forma condensed consolidated financial statements.
Exhibit 99.02 - Pro Forma Financials
NOTES TO UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. PRO FORMA ADJUSTMENTS TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(a)
Adjustment to reflect the receipt of cash consideration of $2.0 and $5.0 million, respectively, from the sales of the Company's interests in two and six agreements, respectively, and associated assets (collectively "the assets") relating to the generation and sale of energy to an unrelated third party.
(b)
Adjustment to derecognize the carrying value of the assets sold.
(c)
Adjustment to recognize liability for costs related to assets sold which were incurred subsequent to September 30, 2018.
(d)
Adjustment for estimated gain on the sales. The amount of the actual gain will be calculated based on the carrying value of the assets as of the closing of the transactions and therefore differ from the estimate which employs the carrying values as of September 30, 2018.

EX - 99 . 02 10 a9902proformafinancialstat . htm EXHIBIT 99 . 02 Exhibit Exhibit 99 . 02 - Pro Forma Financials UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS On December 14 , 2018 and March 5 , 2019 , Tecogen Inc . ( " the Company " ) completed the sales of its interests in two and six agreements , respectively , and associated assets ( collectively " the assets " ) relating to the generation and sale of energy to an unrelated third party in exchange for $ 2.0 million and $ 5.0 million , cash , respectively . The following unaudited pro forma condensed consolidated financial statements have been derived by the application of pro forma adjustments to the Company ' s historical consolidated financial statements , which have been presented to give effect to the dispositions of the assets . The unaudited pro forma condensed consolidated balance sheet as of September 30 , 2018 is presented as if the dispositions had occurred as of September 30 , 2018 . The unaudited pro forma condensed consolidated statement of operations for the nine months ended September 30 , 2018 is presented as if the dispositions had occurred on January 1 , 2018 . The unaudited pro forma condensed consolidated statement of operations for the year ended December 31 , 2017 is presented as if the dispositions had occurred on May 18 , 2017 , the date the assets were acquired as part of a larger acquisition . The unaudited pro forma condensed consolidated balance sheet and statements of operations for these respective periods are being provided for illustrative purposes only and do not purport to represent what our results of operations or financial position would have been if the transactions had occurred on the dates indicated and are not intended to project our results of operations or financial position for any future period . Any of the factors underlying these estimates and assumptions may change or prove to be materially different and the estimates and assumptions may not be representative of facts that existed upon completion of the dispositions . The unaudited pro forma adjustments are based on estimates , available information and certain assumptions that the Company believes are reasonable . The unaudited pro forma adjustments and primary assumptions are described in the accompanying notes . The unaudited pro forma condensed consolidated financial statements and the related notes should be read in conjunction with the historical consolidated financial statements and accompanying notes of Tecogen Inc . included in the Company 's Annual Report on Form 10 - K for the year ended December 31 , 2017 and the Company 's Quarterly Report on Form 10 - Q for the period ended September 30 , 2018 . Exhibit 99 . 02 - Pro Forma Financials TECOGEN INC . Pro Forma Condensed Consolidated Balance Sheet As of September 30 , 2018 ( Unaudited ) Tecogen Inc . Dispositions of Pro Forma Historical Assets Adjustments Notes Pro Forma Cash and cash equivalents $ 136,717 $ - $ 7,000,000 ( a ) $ 7,136,717 Accounts receivable , net 11,548,663 - - 11,548,663 Unbilled revenue 4,441,565 - - 4,441,565 Inventory , net 5,983,067 - - 5,983,067 Prepaid and other currents assets 815,269 - - 815,269 Total current assets 22,925,281 - 7,000,000 29,925,281 Property , plant and equipment , net 11,107,509 ( 6,825,539 ) - ( b ) 4,281,970 Intangible assets , net 2,935,279 ( 1,341,584 ) - ( b ) 1,593,695 Goodwill 13,365,655 - - 13,365,655 Other assets 427,810 - - 427,810 Total assets $ 50,761,534 $ ( 8,167,123 ) $ 7,000,000 $ 49,594,411 Revolving line of credit , bank $ 1,708,888 $ - $ - $ 1,708,888 Accounts payable 5,716,426 - - 5,716,426 Accrued expenses 2,196,921 - 591,000 ( c ) 2,787,921 Deferred revenue 1,718,376 - - 1,718,376 Total current liabilities 11,340,611 - - 11,931,611 Deferred revenue , net of current portion 343,031 - - 343,031 Unfavorable contract liability , net 6,534,074 ( 3,372,337 ) - ( b ) 3,161,737 Total liabilities 18,217,716 ( 3,372,337 ) - 15,436,379 Common stock 24,819 - - 24,819 Additional paid - in capital 56,371,583 - - 56,371,583 Accumulated deficit ( 24,298,191 ) - 1,614,214 ( d ) ( 22,683,977 ) Total Tecogen Inc . stockholders ' equity 32,098,211 - 1,614,214 33,712,425 Non controlling interest 445,607 - - 445,607 Total stockholders ' equity 32,543,818 - 1,614,214 34,158,032 Total liabilities and stockholders ' equity $ 50,761,534 $ ( 3,372,337 ) $ 1,614,214 $ 49,594,411 The accompanying notes are an integral part of the unaudited pro forma condensed consolidated financial statements . Exhibit 99 . 02 - Pro Forma Financials TECOGEN INC . Pro Forma Condensed Consolidated Statement of Operations Nine Months Ended September 30 , 2018 ( Unaudited ) Tecogen Inc . Dispositions of Historical Assets Pro Forma Net sales and gross revenues $ 26,567,276 $ ( 2,037,868 ) $ 24,529,408 Cost and expenses applicable to sales and revenues 16,686,781 ( 1,387,453 ) 15,299,328 Gross profit 9,880,495 ( 650,415 ) 9,230,080 Selling , general and administrative expenses 10,015,085 - 10,015,085 Research and development 993,102 - 993,102 Loss from operations ( 1,127,692 ) ( 650,415 ) ( 1,778,107 ) Interest and other income 7,926 - 7,926 Interest expense ( 56,195 ) - ( 56,195 ) Unrealized loss on investment securities ( 59,042 ) - ( 59,042 ) Loss from continuing operations before income taxes ( 1,235,003 ) ( 650,415 ) ( 1,885,418 ) Provision for income taxes on continuing operations 42,679 - 42,679 Net loss from continuing operations ( 1,277,682 ) ( 650,415 ) ( 1,928,097 ) Income attributable to the non controlling interest ( 58,946 ) - ( 58,946 ) Net loss attributable Tecogen Inc . shareholders $ ( 1,336,628 ) $ ( 650,415 ) $ ( 1,987,043 ) Per common share data : Net loss per share - basic and diluted $ ( 0 . 05 ) $ ( 0 . 08 ) Weighted average shares outstanding - basic and diluted 24,813,936 24,813,936 The accompanying notes are an integral part of the unaudited pro forma condensed consolidated financial statements . Exhibit 99 . 02 - Pro Forma Financials TECOGEN INC . Pro Forma Condensed Consolidated Statement of Operations Year Ended December 31 , 2017 ( Unaudited ) Tecogen Inc . Dispositions of Historical Assets Pro Forma Net sales and gross revenues $ 33,202,666 $ ( 1,707,016 ) $ 31,495,650 Cost and expenses applicable to sales and revenues 20,248,262 ( 1,094,566 ) 19,153,696 Gross profit 12,954,404 ( 612,450 ) 12,341,954 Selling , general and administrative expenses 11,792,323 - 11,792,323 Research and development 936,929 - 936,929 Income ( loss ) from operations 225,152 ( 612,450 ) ( 387,298 ) Interest and other income 27,626 - 27,626 Interest expense ( 155,082 ) - ( 155,082 ) Income ( loss ) from continuing operations before income taxes 97,696 ( 612,450 ) ( 514,754 ) Provision for income taxes on continuing operations - - - Net income ( loss ) from continuing operations 97,696 ( 612,450 ) ( 514,754 ) Income attributable to the non controlling interest ( 50,260 ) - ( 50,260 ) Net income ( loss ) attributable Tecogen Inc . shareholders $ 47,436 $ ( 612,450 ) $ ( 565,014 ) Per common share data : Net income ( loss ) per share - basic $ - $ ( 0 . 02 ) Net income ( loss ) per share - diluted $ - $ ( 0 . 02 ) Weighted average shares outstanding - basic 23,171,033 23,171,033 Weighted average shares outstanding - diluted 23,342,627 23,171,033 The accompanying notes are an integral part of the unaudited pro forma condensed consolidated financial statements . Exhibit 99 . 02 - Pro Forma Financials NOTES TO UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 1 . PRO FORMA ADJUSTMENTS TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS ( a ) Adjustment to reflect the receipt of cash consideration of $ 2.0 and $ 5.0 million , respectively , from the sales of the Company 's interests in two and six agreements , respectively , and associated assets ( collectively " the assets " ) relating to the generation and sale of energy to an unrelated third party . ( b ) Adjustment to derecognize the carrying value of the assets sold . ( c ) Adjustment to recognize liability for costs related to assets sold which were incurred subsequent to September 30 , 2018 . ( d ) Adjustment for estimated gain on the sales . The amount of the actual gain will be calculated based on the carrying value of the assets as of the closing of the transactions and therefore differ from the estimate which employs the carrying values as of September 30 , 2018 .
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