More than 195% Quarterly Revenue Increase
from Last Year
MagneGas Applied Technology Solutions, Inc. ("MagneGas" or
the "Company") (NASDAQ: MNGA), a leading clean technology
company in the renewable resources and environmental solutions
industries, today announced financial results and provided a
business update for the third quarter ended September 30, 2018.
Scott Mahoney, Chief Executive Officer of MagneGas, stated,
“2018 has been transformative for many reasons and our
rapidly-expanding geographic footprint in the United States has
been one of the strongest signals. We proudly announce our monthly
sales figures because we’re regularly seeing more than 200%
year-over-year growth each month. This not only speaks to our
acquisition strategy and due diligence being effective, but I would
also like to thank all the teams for the speed and efficiency with
which we have effectively integrated our acquisitions and enabling
them to be immediately accretive.
“With each strategic acquisition and subsequent expansion, more
customers and potential partners are recognizing the way our
MagneGas2® is transforming their industries in a positive and
environmentally-focused way. Revenue for the third quarter, ended
September 30, 2018 increased 195% to $2.6 million, largely driven
by these new acquisitions.
"We have three major goals: first, we want to scale our US
industrial revenues so that we are financial self-sufficient.
Second, we want to unlock the growth potential of the European
markets. Lastly, we want to explore new and complimentary
technology opportunities, leveraging both our existing technologies
as well as through partnerships or other technology additions to
our patent portfolio. I believe we are hitting on all cylinders and
that MagneGas is currently best positioned to maximize our growth
potential.”
Third Quarter 2018 Financial ResultsRevenue for
the third quarter ended September 30, 2018 was $2.6 million, which
equates to a 195% increase compared to the same period last year.
The 195% increase in revenue was due primarily to
MagneGas's acquisition of Trico Welding Supplies in Northern
California which generated $1.26 million.
For the three months ended September 30, 2018 the cost of
revenues was $1.60 million. During this period, the
Company generated a gross profit of $998,000. Gross margins
for the three months ended September 30, 2018 and 2017 were 38% and
37%, respectively. The Company recorded $201,809 in additional cost
of goods sold during the period due to acquisition accounting. If
this amount were excluded, gross margins would have otherwise been
46%.
MagneGas recorded $534,000 in additional cost of goods sold
during the period due to acquisition accounting. If this amount
were excluded, gross margins would have been 43%. The Company
anticipates that margins will improve as all acquired inventory is
sold and the cost basis for replacement inventory is reflected
in MagneGas's future cost of goods sold. Partially offsetting
this increase in cost of goods sold, the Company has achieved
better pricing and terms on select products as it achieves
economies of scale and greater buying power.
Operating costs for the three months ended September 30, 2018
and 2017 were $4.5 million and $2.6 million,
respectively. MagneGas's operating expenses as a percentage of
sales were 175.1% and 298% for the three months ended September 30,
2018 and 2017, respectively.
Conference CallMagneGas management will host a
conference call on Wednesday, November 14th at 10:00am Eastern Time
and provide an update on recent developments, including details of
recent acquisitions and other corporate updates. To participate in
the call, please dial 1-877-407-0312 (toll-free) in the U.S. and
Canada. The conference ID number for both the call and webcast is
13685044.
A live audio webcast of the conference call will also be
available on the investor relations page of MagneGas’ corporate
website at www.magnegas.com.
About MagneGas Applied Technology Solutions,
Inc.
MagneGas Applied Technology Solutions, Inc. (MNGA) owns a
patented process that converts various renewables and liquid wastes
into MagneGas® fuels. These fuels can be used as an alternative to
natural gas or for metal cutting. The Company's testing has shown
that its metal cutting fuel, MagneGas2®, is faster, cleaner and
more productive than other alternatives on the market. It is also
cost effective and safe to use with little changeover costs. The
Company currently sells MagneGas2® into the metal working market as
a replacement to acetylene.
The Company also sells 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 http://www.MagneGas.com.
The Company distributes MagneGas2® through Independent
Distributors in the U.S and through its wholly owned distributors,
ESSI, Green Arc Supply, Paris Oxygen, Latex Welding Supplies,
United Welding Supplies, Trico Welding Supply and Complete Welding
of San Diego. The Company operates 13 locations across California,
Texas, Louisiana, and Florida.
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.
Investor Contacts:Tirth PatelEdison AdvisorsT:
646-653-7035tpatel@edisongroup.com
MagneGas Applied Technology Solutions,
Inc. |
f/k/a MagneGas Corporation |
Condensed Consolidated Balance
Sheets |
|
September
30,2018 |
|
December 31,2017 |
|
|
|
(Unaudited) |
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash |
$ |
1,835,912 |
|
$ |
586,824 |
|
Accounts receivable,
net of allowance for doubtful accounts of $166,794 and $101,063,
respectively |
|
1,386,523 |
|
|
389,652 |
|
Inventory |
|
1,543,817 |
|
|
738,950 |
|
Prepaid and other
current assets |
|
581,661 |
|
|
198,056 |
|
Total Current
Assets |
|
5,347,913 |
|
|
1,913,482 |
|
|
|
|
|
|
|
|
Property and equipment,
net of accumulated depreciation of $2,535,292 and $2,032,265,
respectively |
|
9,131,926 |
|
|
6,865,389 |
|
Deposits on
acquisition |
|
- |
|
|
325,000 |
|
Intangible assets, net
of accumulated amortization of $707,533 and $457,171,
respectively |
|
2,232,509 |
|
|
412,331 |
|
Security deposits |
|
16,941 |
|
|
27,127 |
|
Goodwill |
|
3,343,280 |
|
|
2,108,781 |
|
|
|
|
|
|
|
|
Total
Assets |
$ |
20,072,569 |
|
$ |
11,652,110 |
|
|
|
|
|
|
|
|
Liabilities and
Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable |
$ |
1,571,337 |
|
$ |
1,716,661 |
|
Accrued expenses |
|
911,402 |
|
|
909,562 |
|
Deferred revenue and
customer deposits |
|
- |
|
|
44,095 |
|
Capital leases,
current |
|
110,074 |
|
|
27,460 |
|
Note payable, net of
debt discount of $13,903 and $184,204, respectively |
|
125,680 |
|
|
451,754 |
|
Promissory notes
payable - related party |
|
- |
|
|
100,000 |
|
|
|
|
|
|
|
|
Total Current
Liabilities |
|
2,718,493 |
|
|
3,249,532 |
|
|
|
|
|
|
|
|
Long Term
Liabilities |
|
|
|
|
|
|
Note payable |
|
520,000 |
|
|
520,000 |
|
Capital leases, net of
current |
|
217,552 |
|
|
63,839 |
|
Total
Liabilities |
|
3,456,045 |
|
|
3,833,371 |
|
|
|
|
|
|
|
|
Commitments and
Contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
Series C Preferred
stock: 25,000 shares designated; 0 and 115 shares issued and
outstanding with a liquidation preference of approximately $0 at
September 30, 2018 |
|
- |
|
|
115,000 |
|
Series E Preferred
stock: 455,882 shares designated; 36,765 and 316,875 shares issued
and outstanding with a liquidation preference of approximately
$57,500 at September 30, 2018 |
|
50,000 |
|
|
430,950 |
|
Series F Preferred
Stock: 817,670 shares designated; 0 and 0 shares issued and
outstanding with a liquidation preference of approximately $0 at
September 30, 2018 |
|
- |
|
|
- |
|
|
|
|
|
|
|
|
Stockholders’
Equity |
|
|
|
|
|
|
Preferred stock: $0.001
par; 10,000,000 shares authorized |
|
|
|
|
|
|
Series A Preferred
stock: 1,000,000 shares authorized; 1,000,000 shares issued and
outstanding with no liquidation preference at September 30,
2018 |
|
1,000 |
|
|
1,000 |
|
Series B Preferred
stock: 2,700 shares designated; 0 shares issued and outstanding at
September 30, 2018 and December 31, 2017 |
|
- |
|
|
- |
|
Common stock: $0.001
par; 190,000,000 shares authorized; 59,917,080 shares issued and
outstanding at September 30, 2018 and 1,782,864 shares issued and
outstanding at December 31, 2017 |
|
59,918 |
|
|
1,783 |
|
Additional
paid-in-capital |
|
91,215,564 |
|
|
71,852,874 |
|
Accumulated
deficit |
|
(74,709,958 |
) |
|
(64,582,868 |
) |
|
|
|
|
|
|
|
Total
Stockholders’ Equity |
|
16,566,524 |
|
|
7,272,789 |
|
|
|
|
|
|
|
|
Total
Liabilities, Temporary Equity and Stockholders’
Equity |
$ |
20,072,569 |
|
$ |
11,652,110 |
|
MagneGas Applied Technology Solutions,
Inc. |
f/k/a MagneGas Corporation |
Condensed Consolidated Statements of
Operations |
(Unaudited) |
|
|
For the three monthsended |
|
For the nine monthsended |
|
|
Sep. 30, 2018 |
|
Sep. 30, 2017 |
|
Sep. 30, 2018 |
|
Sep. 30, 2017 |
|
|
|
|
|
|
|
|
|
|
Revenue: |
$ |
2,598,820 |
|
$ |
879,511 |
|
$ |
6,678,285 |
|
$ |
2,717,503 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Revenues |
|
1,600,602 |
|
|
552,374 |
|
|
4,331,064 |
|
|
1,588,419 |
|
Gross Profit |
|
998,218 |
|
|
327,137 |
|
|
2,347,221 |
|
|
1,129,084 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administration |
|
4,133,073 |
|
|
2,453,160 |
|
|
11,220,329 |
|
|
8,366,604 |
|
Research and
development |
|
4,500 |
|
|
1,470 |
|
|
8,092 |
|
|
125,725 |
|
Depreciation and
amortization |
|
408,881 |
|
|
166,034 |
|
|
988,354 |
|
|
526,602 |
|
Total Operating
Expenses |
|
4,546,454 |
|
|
2,620,664 |
|
|
12,216,775 |
|
|
9,018,931 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Loss |
|
(3,548,236 |
) |
|
(2,293,527 |
) |
|
(9,869,554 |
) |
|
(7,889,847 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income
and (Expense): |
|
|
|
|
|
|
|
|
|
|
|
|
Interest |
|
(11,387 |
) |
|
(27,233 |
) |
|
(107,402 |
) |
|
(46,142 |
) |
Amortization of debt
discount |
|
(52,965 |
) |
|
(804,776 |
) |
|
(169,676 |
) |
|
(951,533 |
) |
Other (expense)
income |
|
- |
|
|
481 |
|
|
19,542 |
|
|
(2,066 |
) |
Extinguishment of
debt |
|
- |
|
|
- |
|
|
- |
|
|
(513,725 |
) |
Change in fair value of
derivative liability |
|
- |
|
|
- |
|
|
- |
|
|
2,255,322 |
|
Total Other
Income (Expense) |
|
(64,352 |
) |
|
(831,528 |
) |
|
(257,536 |
) |
|
741,856 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Loss |
|
(3,612,588 |
) |
|
(3,125,055 |
) |
|
(10,127,090 |
) |
|
(7,147,991 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Deemed dividend |
|
415,800 |
|
|
1,034,682 |
|
|
1,660,200 |
|
|
1,109,682 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to common shareholders |
$ |
(4,028,388 |
) |
$ |
(4,159,737 |
) |
$ |
(11,787,290 |
) |
$ |
(8,257,673 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share:
Basic and Diluted |
$ |
(0.10 |
) |
$ |
(0.39 |
) |
$ |
(0.57 |
) |
$ |
(1.06 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares: Basic and Diluted |
|
39,366,633 |
|
|
10,786,551 |
|
|
20,684,102 |
|
|
7,763,782 |
|
Magnegas Applied Technlgy Sol (MM) (NASDAQ:MNGA)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024
Magnegas Applied Technlgy Sol (MM) (NASDAQ:MNGA)
Graphique Historique de l'Action
De Juin 2023 à Juin 2024