Welcome!

Cognitive Computing Authors: Liz McMillan, Pat Romanski, Yeshim Deniz, Shelly Palmer, Elizabeth White

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 IBM has been named “Diamond Sponsor” of SYS-CON's 21st Cloud Expo, which will take place on October 31 through November 2nd 2017 at the Santa Clara Convention Center in Santa Clara, California.
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, will lead you through the exciting evolution of the cloud. He'll look at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering ...
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, will discuss how from store operations...
In a recent survey, Sumo Logic surveyed 1,500 customers who employ cloud services such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP). According to the survey, a quarter of the respondents have already deployed Docker containers and nearly as many (23 percent) are employing the AWS Lambda serverless computing framework. It’s clear: serverless is here to stay. The adoption does come with some needed changes, within both application development and operations. Tha...
Infoblox delivers Actionable Network Intelligence to enterprise, government, and service provider customers around the world. They are the industry leader in DNS, DHCP, and IP address management, the category known as DDI. We empower thousands of organizations to control and secure their networks from the core-enabling them to increase efficiency and visibility, improve customer service, and meet compliance requirements.
Join IBM November 1 at 21st Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA, and learn how IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Cognitive analysis impacts today’s systems with unparalleled ability that were previously available only to manned, back-end operations. Thanks to cloud processing, IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Imagine a robot vacuum that becomes your personal assistant tha...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
Recently, REAN Cloud built a digital concierge for a North Carolina hospital that had observed that most patient call button questions were repetitive. In addition, the paper-based process used to measure patient health metrics was laborious, not in real-time and sometimes error-prone. In their session at 21st Cloud Expo, Sean Finnerty, Executive Director, Practice Lead, Health Care & Life Science at REAN Cloud, and Dr. S.P.T. Krishnan, Principal Architect at REAN Cloud, will discuss how they b...
SYS-CON Events announced today that mruby Forum will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. mruby is the lightweight implementation of the Ruby language. We introduce mruby and the mruby IoT framework that enhances development productivity. For more information, visit http://forum.mruby.org/.
Digital transformation is changing the face of business. The IDC predicts that enterprises will commit to a massive new scale of digital transformation, to stake out leadership positions in the "digital transformation economy." Accordingly, attendees at the upcoming Cloud Expo | @ThingsExpo at the Santa Clara Convention Center in Santa Clara, CA, Oct 31-Nov 2, will find fresh new content in a new track called Enterprise Cloud & Digital Transformation.
SYS-CON Events announced today that NetApp has been named “Bronze Sponsor” of SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. NetApp is the data authority for hybrid cloud. NetApp provides a full range of hybrid cloud data services that simplify management of applications and data across cloud and on-premises environments to accelerate digital transformation. Together with their partners, NetApp emp...
SYS-CON Events announced today that Avere Systems, a leading provider of enterprise storage for the hybrid cloud, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Avere delivers a more modern architectural approach to storage that doesn't require the overprovisioning of storage capacity to achieve performance, overspending on expensive storage media for inactive data or the overbui...
Most technology leaders, contemporary and from the hardware era, are reshaping their businesses to do software. They hope to capture value from emerging technologies such as IoT, SDN, and AI. Ultimately, irrespective of the vertical, it is about deriving value from independent software applications participating in an ecosystem as one comprehensive solution. In his session at @ThingsExpo, Kausik Sridhar, founder and CTO of Pulzze Systems, will discuss how given the magnitude of today's applicati...
Smart cities have the potential to change our lives at so many levels for citizens: less pollution, reduced parking obstacles, better health, education and more energy savings. Real-time data streaming and the Internet of Things (IoT) possess the power to turn this vision into a reality. However, most organizations today are building their data infrastructure to focus solely on addressing immediate business needs vs. a platform capable of quickly adapting emerging technologies to address future ...
SYS-CON Events announced today that Taica will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. TAZMO technology and development capabilities in the semiconductor and LCD-related manufacturing fields are among the best worldwide. For more information, visit https://www.tazmo.co.jp/en/.
SYS-CON Events announced today that TidalScale will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. TidalScale is the leading provider of Software-Defined Servers that bring flexibility to modern data centers by right-sizing servers on the fly to fit any data set or workload. TidalScale’s award-winning inverse hypervisor technology combines multiple commodity servers (including their ass...
SYS-CON Events announced today that Avere Systems, a leading provider of hybrid cloud enablement solutions, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Avere Systems was created by file systems experts determined to reinvent storage by changing the way enterprises thought about and bought storage resources. With decades of experience behind the company’s founders, Avere got its ...
As hybrid cloud becomes the de-facto standard mode of operation for most enterprises, new challenges arise on how to efficiently and economically share data across environments. In his session at 21st Cloud Expo, Dr. Allon Cohen, VP of Product at Elastifile, will explore new techniques and best practices that help enterprise IT benefit from the advantages of hybrid cloud environments by enabling data availability for both legacy enterprise and cloud-native mission critical applications. By rev...
SYS-CON Events announced today that Ryobi Systems will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Ryobi Systems Co., Ltd., as an information service company, specialized in business support for local governments and medical industry. We are challenging to achive the precision farming with AI. For more information, visit http:...
Amazon is pursuing new markets and disrupting industries at an incredible pace. Almost every industry seems to be in its crosshairs. Companies and industries that once thought they were safe are now worried about being “Amazoned.”. The new watch word should be “Be afraid. Be very afraid.” In his session 21st Cloud Expo, Chris Kocher, a co-founder of Grey Heron, will address questions such as: What new areas is Amazon disrupting? How are they doing this? Where are they likely to go? What are th...