TECOGEN INC

Previous wording

We incurred a net loss from operations of $2,523,851 during the six months ended June 30, 2024, compared to a net loss from operations of $2,229,995 in the same period in 2023. We have a history of incurring losses from our operations and there can be no assurance we will be able to increase our revenues, manage our expenses and cash flows, and become profitable in the future.

Current wording

We incurred a net loss from operations of $3,397,075 during the nine months ended September 30, 2024, compared to a net loss from operations of $2,598,287 in the same period in 2023. We have a history of incurring losses from our operations and there can be no assurance we will be able to increase our revenues, manage our expenses and cash flows, and become profitable in the future.

Previous wording

We incurred a net loss from operations of $2,523,851 during the six months ended June 30, 2024, compared to a net loss from operations of $2,229,995 in the six months ended June 30, 2023. Historically, we have incurred net losses from operations, including a net loss of $4,598,103 in the year ended December 31, 2023, and, as of June 30, 2024, we had an accumulated deficit of $45,523,419. Our business is capital intensive and, because our products are built to order with customized configurations, the lead time to build and deliver a unit can be significant. We may be required to purchase key components long before we can deliver a unit and receive payment. Changes in customer orders or lack of demand may also impact our profitability. There can be no assurance we will be able to increase our sales and achieve and sustain profitability in the future. If our cash flows from operations are insufficient to fund our business and, currently, we are reliant upon financing provided by a related party to help fund our operations we may need to raise additional capital through a debt or equity financing to meet our need for capital to fund operations and future growth. (See “Note 11 to the Condensed Consolidated Financial Statements”and“Liquidity and Capital Resources-Liquidity.”)

Current wording

We incurred a net loss from operations of $3,397,075 during the nine months ended September 30, 2024, compared to a net loss from operations of $2,598,287 in the nine months ended September 30, 2023. Historically, we have incurred net losses from operations, including a net loss of $4,598,103 in the year ended December 31, 2023, and, as of September 30, 2024, we had an accumulated deficit of $46,453,827. Our business is capital intensive and, because our products are built to order with customized configurations, the lead time to build and deliver a unit can be significant. We may be required to purchase key components long before we can deliver a unit and receive payment. Changes in customer orders or lack of demand may also impact our profitability. There can be no assurance we will be able to increase our sales and achieve and sustain profitability in the future. On October 30, 2024, our Board of Directors authorized management to proceed with an equity offering consisting of a private placement to existing shareholders in an amount of up to $2 million, consisting of one share of common stock, with a warrant to purchase one share of common stock for each share purchsed, exercisable within two years. Based on management's analysis, we believe that cash flows from operations, the note agreements and anticipated proceeds from the private placement offering will be sufficient to fund operations over the next twelve months. There can, however, be no assurance we will be able to do so. If our cash flows from operations are insufficient to fund our business we must continue to rely upon financing provided by related parties to help fund our operations and we may need to raise additional capital through a debt or equity financing to meet our need for capital to fund operations and future growth. (See “Note 11 to the Condensed Consolidated Financial Statements”and“Liquidity and Capital Resources-Liquidity.”)