Welcome!

iPhone Authors: Yeshim Deniz, David H Deans, Carmen Gonzalez, Lori MacVittie, Daniel Keeney

News Feed Item

MagneGas Reports Financial Results For The Third Quarter And First Nine Months Of 2012

TAMPA, Fla., Nov. 13, 2012 /PRNewswire/ -- MagneGas Corporation ("MagneGas" or the "Company") (NASDAQ: MNGA), the developer of a technology that converts liquid waste into a hydrogen-based metal working fuel, today announced its financial results for the third quarter and nine months ended September 30, 2012.

Third Quarter 2012 Financial Highlights:

  • Total revenues of $201,096 for the third quarter of 2012 increased 147% as compared to $81,253 for the prior year's third quarter;
  • Metal cutting revenues increased 207% to $177,763 as compared to $57,920 in the third quarter of 2011; and
  • Quarterly cash balance of $4.3 million as compared to $147,000 for the same period ending September 30, 2011

"We made good progress during the third quarter of 2012 as we continued to ramp up production, win new customers and demonstrate the superior metal cutting properties of our MagneGas fuel," stated Ermanno Santilli, Chief Executive Officer of MagneGas. "We are committed to staying focused on our business plan as we expand our footprint through out the metal cutting industry."

Santilli concluded, "We also believe that demand for MagneGas refineries, which provide an excellent value proposition for customers looking to produce MagneGas fuel in-house and on-site, will continue to increase over the next several quarters. In August, we shipped a 160 kW refinery to RJ Torching, one of the largest scrap yards in Michigan. We also purchased a 3.5 acre facility adjacent to our headquarters that will allow us to manufacture up to 30 refineries at one time. We are now well positioned to meet the steadily increasing demand for our products."   

Third Quarter 2012 Financial Results

For the third quarter of 2012, total revenues were $201,096, an increase of $119,843 or 147%, from revenues of $81,253 for the third quarter of 2011. 

Metal cutting revenues were $177,763 for the third quarter of 2012, a 207% increase over metal cutting revenues of $57,920 for the prior year's third quarter. Metal cutting revenues as a percentage of total revenues for the third quarter of 2011 were 88% as compared to 71% in the prior year's third quarter.  Licensing fees were $23,333 for the third quarter of 2012, the same as for the prior year's third quarter. 

Operating expenses were $2,166,514 for the third quarter of 2012, increasing 254% from operating expenses of $612,773 for the prior year's third quarter, primarily due to the opening of new facilities, the addition of executives and staff to manage sales and production efforts, and investments in research & development. The Company had an operating loss in the third quarter of 2012 of $2,099,034, compared to an operating loss of $587,011 for the prior year's third quarter.

The Company recorded a net loss of $2,098,385, or $0.11 per basic and diluted share, for the third quarter of 2012, as compared to a net loss of $366,041, or $0.02 per basic and diluted share, for the third quarter of 2011.

The Company has focused on selling fuel to scrap yards and demolition companies for much of 2012.  But a decrease in scrap steel prices during the 3rd quarter, with a corresponding decrease in cutting and fuel use in this market, resulted in lower than anticipated sales of MagneGas fuel in the 3rd quarter. The Company is now also focusing on selling fuel to those industries that benefit from lower steel prices such as fabricators and ship builders.  The intention is to diversify sales channels in order to hedge against the volatility of the scrap steel industry.

Nine Month Results

For the nine months ended September 30, 2012, total revenues were $522,052, an increase of $295,949 or 131%, from revenues of $226,103 for the first nine months of 2011. 

Metal cutting revenues were $452,053 for the nine months ended September 30, 2012, a 326% increase over metal cutting revenues of $106,104 for the same period in 2011. Metal cutting revenues as a percentage of total revenues for the nine months ended September 30, 2011 were 87% as compared to 47% for the same period in 2011.  Licensing fees were $69,999 for the first nine months of 2012, a 42% decrease over licensing fees of $119,999 for the same period last year. 

Operating expenses were $4,958,621 for the first nine months of 2012, increasing 187% from operating expenses of $1,725,620 for the same period in 2012, primarily due to the opening of new facilities, a rise in headcount to support sales and production efforts and investments in research & development. The Company had an operating loss for the nine months ended September 30, 2012 of $4,958,621, compared to an operating loss of $1,725,620 for the same period in 2011.

The Company recorded a net loss of $4,959,000, or $0.28 per basic and diluted share, for the nine months ended September 30, 2012 as compared to a net loss of $1,080,508 or $0.08 per basic and diluted share, for the same period in 2011.

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 the producer of MagneGasTM, a natural gas alternative and metal working fuel that can be made from certain industrial, municipal, agricultural and military liquid wastes following the receipt of appropriate governmental permits.

The Company's patented Plasma Arc FlowTM process gasifies liquid waste, creating a clean burning hydrogen based fuel that is essentially interchangeable with natural gas. MagneGasTM can be used for metal working, cooking, heating, powering bi fuel automobiles and more. 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. The Company is currently using new ethylene glycol to produce fuel until proper permits to process used liquid waste have been obtained.

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.

 

-Tables Follow-

 

MagneGas Corporation

Balance Sheets

(Unaudited)

 



September 30,



December 31,




2012



2011




(Unaudited)



(Audited)


 Assets







Current Assets







Cash and cash equivalents


$

4,314,751



$

1,429,412


Accounts receivable, net of allowance for doubtful accounts of $25,000 and $0,

respectively



104,825




19,050


Inventory, at cost



1,715,285




656,992


Prepaid and other current assets



-




2,500


     Total Current Assets



6,134,861




2,107,954











Property and equipment, net of accumulated depreciation of $286,267 and $44,538,

respectively



5,159,346




2,561,384











Deferred tax asset



456,500




456,500


Intangible assets, net of accumulated amortization of $187,861 and $151,511,

respectively



539,139




575,489


Investment in joint ventures



490,410




490,410


Security deposits



2,153




-


Total Assets


$

12,782,409



$

6,191,737




















 Liabilities and Stockholders' Equity









Current Liabilities









Accounts payable


$

668,844



$

291,249


Accrued expenses



277,766




125,011


Deferred revenue and customer deposits



256,663




326,662


Due to stockholder



-




210,500


Due to related parties



-




13,400


Total Current Liabilities



1,203,273




966,822











Total Liabilities



1,203,273




966,822











Stockholders' Equity









Preferred stock: $0.001 par;  10,000,000 authorized; 1,000,000 issued and outstanding



1,000




2


Common stock: $0.001 par;  900,000,000 authorized; 20,042,616 and 15,438,929

issued and outstanding, respectively



20,043




15,439


Additional paid-in capital



21,627,523




10,334,904


Issued and unearned stock compensation



(13,333)




(28,333)


Accumulated deficit



(10,056,097)




(5,097,097)


Total Stockholders' Equity



11,579,136




5,224,915











Total Liabilities and Stockholders' Equity


$

12,782,409



$

6,191,737


 

Statements of Operations

(Unaudited)

 



Three Months Ended



Nine Months Ended




September 30,



September 30,




2012



2011



2012



2011















Revenue:



201,096




81,253




522,052




226,103



















Direct costs, metal cutting



133,616




55,491




316,824




91,087





67,480




25,762




205,228




135,016



















Operating Expenses:

















Selling and related expenses



293,660




68,992




615,495




288,089


General and administration



1,020,058




377,131




2,384,905




932,211


Stock-based compensation



672,099




95,850




1,699,622




456,490


Research and development



71,875




53,031




185,748




130,535


Depreciation and amortization



108,822




17,769




278,079




53,311


Total Operating Expenses



2,166,514




612,773




5,163,849




1,860,636



















Operating Income (Loss)



(2,099,034)




(587,011)




(4,958,621)




(1,725,620)



















Other Income and (Expense):

















Interest



649




(30)




(379)




12


Total Other Income (Expense)



649




(30)




(379)




12



















Net Income (Loss) before tax benefit



(2,098,385)




(587,041)




(4,959,000)




(1,725,608)


Provision for Income Taxes



-




(221,000)




-




(645,100)


Net Income (Loss)


$

(2,098,385)



$

(366,041)



$

(4,959,000)



$

(1,080,508)



















Net Loss per share:

















    Basic and diluted


$

(0.11)



$

(0.02)



$

(0.28)



$

(0.08)


Weighted average common shares:

















    Basic and diluted



19,124,100




15,366,332




17,410,423




13,397,682


On June 26, 2012, we affected a 1-10 reverse stock split for our common stock.  All share and per share information has been retroactively adjusted to reflect the reverse stock split.

 

 

SOURCE MagneGas Corporation

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
SYS-CON Events announced today that Matrix.org has been named “Silver Sponsor” of Internet of @ThingsExpo, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Matrix is an ambitious new open standard for open, distributed, real-time communication over IP. It defines a new approach for interoperable Instant Messaging and VoIP based on pragmatic HTTP APIs and WebRTC, and provides open source reference implementations to showcase and bootstrap the new standard. Our focus is on simplicity, security, and supporting the fullest feature set.
Predicted by Gartner to add $1.9 trillion to the global economy by 2020, the Internet of Everything (IoE) is based on the idea that devices, systems and services will connect in simple, transparent ways, enabling seamless interactions among devices across brands and sectors. As this vision unfolds, it is clear that no single company can accomplish the level of interoperability required to support the horizontal aspects of the IoE. The AllSeen Alliance, announced in December 2013, was formed with the goal to advance IoE adoption and innovation in the connected home, healthcare, education, aut...
The Internet of Things (IoT) is making everything it touches smarter – smart devices, smart cars and smart cities. And lucky us, we’re just beginning to reap the benefits as we work toward a networked society. However, this technology-driven innovation is impacting more than just individuals. The IoT has an environmental impact as well, which brings us to the theme of this month’s #IoTuesday Twitter chat. The ability to remove inefficiencies through connected objects is driving change throughout every sector, including waste management. BigBelly Solar, located just outside of Boston, is trans...
SYS-CON Events announced today that Red Hat, the world's leading provider of open source solutions, will exhibit at Internet of @ThingsExpo, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Red Hat is the world's leading provider of open source software solutions, using a community-powered approach to reliable and high-performing cloud, Linux, middleware, storage and virtualization technologies. Red Hat also offers award-winning support, training, and consulting services. As the connective hub in a global network of enterprises, partners, a...

SUNNYVALE, Calif., Oct. 20, 2014 /PRNewswire/ -- Spansion Inc. (NYSE: CODE), a global leader in embedded systems, today added 96 new products to the Spansion® FM4 Family of flexible microcontrollers (MCUs). Based on the ARM® Cortex®-M4F core, the new MCUs boast a 200 MHz operating frequency and support a diverse set of on-chip peripherals for enhanced human machine interfaces (HMIs) and machine-to-machine (M2M) communications. The rich set of periphera...

The only place to be June 9-11 is Cloud Expo & @ThingsExpo 2015 East at the Javits Center in New York City. Join us there as delegates from all over the world come to listen to and engage with speakers & sponsors from the leading Cloud Computing, IoT & Big Data companies. Cloud Expo & @ThingsExpo are the leading events covering the booming market of Cloud Computing, IoT & Big Data for the enterprise. Speakers from all over the world will be hand-picked for their ability to explore the economic strategies that utility/cloud computing provides. Whether public, private, or in a hybrid form, clo...
Software AG helps organizations transform into Digital Enterprises, so they can differentiate from competitors and better engage customers, partners and employees. Using the Software AG Suite, companies can close the gap between business and IT to create digital systems of differentiation that drive front-line agility. We offer four on-ramps to the Digital Enterprise: alignment through collaborative process analysis; transformation through portfolio management; agility through process automation and integration; and visibility through intelligent business operations and big data.
The Transparent Cloud-computing Consortium (abbreviation: T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data processing High speed and high quality networks, and dramatic improvements in computer processing capabilities, have greatly changed the nature of applications and made the storing and processing of data on the network commonplace.
Be Among the First 100 to Attend & Receive a Smart Beacon. The Physical Web is an open web project within the Chrome team at Google. Scott Jenson leads a team that is working to leverage the scalability and openness of the web to talk to smart devices. The Physical Web uses bluetooth low energy beacons to broadcast an URL wirelessly using an open protocol. Nearby devices can find all URLs in the room, rank them and let the user pick one from a list. Each device is, in effect, a gateway to a web page. This unlocks entirely new use cases so devices can offer tiny bits of information or simple i...
Things are being built upon cloud foundations to transform organizations. This CEO Power Panel at 15th Cloud Expo, moderated by Roger Strukhoff, Cloud Expo and @ThingsExpo conference chair, will address the big issues involving these technologies and, more important, the results they will achieve. How important are public, private, and hybrid cloud to the enterprise? How does one define Big Data? And how is the IoT tying all this together?
The Internet of Things (IoT) is going to require a new way of thinking and of developing software for speed, security and innovation. This requires IT leaders to balance business as usual while anticipating for the next market and technology trends. Cloud provides the right IT asset portfolio to help today’s IT leaders manage the old and prepare for the new. Today the cloud conversation is evolving from private and public to hybrid. This session will provide use cases and insights to reinforce the value of the network in helping organizations to maximize their company’s cloud experience.
TechCrunch reported that "Berlin-based relayr, maker of the WunderBar, an Internet of Things (IoT) hardware dev kit which resembles a chunky chocolate bar, has closed a $2.3 million seed round, from unnamed U.S. and Switzerland-based investors. The startup had previously raised a €250,000 friend and family round, and had been on track to close a €500,000 seed earlier this year — but received a higher funding offer from a different set of investors, which is the $2.3M round it’s reporting."
The Industrial Internet revolution is now underway, enabled by connected machines and billions of devices that communicate and collaborate. The massive amounts of Big Data requiring real-time analysis is flooding legacy IT systems and giving way to cloud environments that can handle the unpredictable workloads. Yet many barriers remain until we can fully realize the opportunities and benefits from the convergence of machines and devices with Big Data and the cloud, including interoperability, data security and privacy.
All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades. Over the summer Gartner released its much anticipated annual Hype Cycle report and the big news is that Internet of Things has now replaced Big Data as the most hyped technology. Indeed, we're hearing more and more about this fascinating new technological paradigm. Every other IT news item seems to be about IoT and its implications on the future of digital busines...
Cultural, regulatory, environmental, political and economic (CREPE) conditions over the past decade are creating cross-industry solution spaces that require processes and technologies from both the Internet of Things (IoT), and Data Management and Analytics (DMA). These solution spaces are evolving into Sensor Analytics Ecosystems (SAE) that represent significant new opportunities for organizations of all types. Public Utilities throughout the world, providing electricity, natural gas and water, are pursuing SmartGrid initiatives that represent one of the more mature examples of SAE. We have s...
The Internet of Things needs an entirely new security model, or does it? Can we save some old and tested controls for the latest emerging and different technology environments? In his session at Internet of @ThingsExpo, Davi Ottenheimer, EMC Senior Director of Trust, will review hands-on lessons with IoT devices and reveal privacy options and a new risk balance you might not expect.
IoT is still a vague buzzword for many people. In his session at Internet of @ThingsExpo, Mike Kavis, Vice President & Principal Cloud Architect at Cloud Technology Partners, will discuss the business value of IoT that goes far beyond the general public's perception that IoT is all about wearables and home consumer services. The presentation will also discuss how IoT is perceived by investors and how venture capitalist access this space. Other topics to discuss are barriers to success, what is new, what is old, and what the future may hold.
Swiss innovators dizmo Inc. launches its ground-breaking software, which turns any digital surface into an immersive platform. The dizmo platform seamlessly connects digital and physical objects in the home and at the workplace. Dizmo breaks down traditional boundaries between device, operating systems, apps and software, transforming the way users work, play and live. It supports orchestration and collaboration in an unparalleled way enabling any data to instantaneously be accessed on any surface, anywhere and made interactive. Dizmo brings fantasies as seen in Sci-fi movies such as Iro...
There’s Big Data, then there’s really Big Data from the Internet of Things. IoT is evolving to include many data possibilities like new types of event, log and network data. The volumes are enormous, generating tens of billions of logs per day, which raise data challenges. Early IoT deployments are relying heavily on both the cloud and managed service providers to navigate these challenges. In her session at 6th Big Data Expo®, Hannah Smalltree, Director at Treasure Data, to discuss how IoT, Big Data and deployments are processing massive data volumes from wearables, utilities and other mach...
This Internet of Nouns trend is still in the early stages and many of our already connected gadgets do provide human benefits over the typical infotainment. Internet of Things or IoT. You know, where everyday objects have software, chips, and sensors to capture data and report back. Household items like refrigerators, toilets and thermostats along with clothing, cars and soon, the entire home will be connected. Many of these devices provide actionable data - or just fun entertainment - so people can make decisions about whatever is being monitored. It can also help save lives.