TECOGEN INC.
For the period ended Jun 30, 2025. Filed Aug 13, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 13, 2025
TGEN$1.72+12.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-13.
0001537435-25-000037
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-13.
0001537435-25-000131
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 102 previous paragraphs and 131 current paragraphs.
61 unchanged; 32 reworded; 24 added; 9 removed; 0 previous and 14 current paragraphs rearranged.
Tables are not compared: 4 previous and 7 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (24)
Current report
Recent Equity Financing
Current report
On July 21, 2025, we closed on a firm commitment underwitten public offering of 3,985,000 shares of common stock, $0.001 par value per share ("Common Stock"), including an additional 485,000 shares of common stock to cover over-allotments, at a price to the public of $5.00 per share, pursuant to an underwriting agreement, dated July 18, 2025, between us and Roth Capital Partners, LLC, as sole underwriter and manager for the offering. The net proceeds of the offering, after deducting underwriting discounts and commissions and estimated offering expenses were approximately $18,160,750.
Current report
We intend to use the net proceeds of the offering for continued product development, increased sales and marketing activities, sales, marketing, additional human resources, capital expenditures, and other costs and expenses we may incur in connection with the anticipated expansion into the data center market, and for general working capital and corporate purposes. See "Note 14. Subsequent Events" to the Notes to the Condensed Consolidated Financial Statements.
Current report
On May 1, 2025, Mr. Lewis elected to convert the promissory note we issued to him in connection with his loan to us in the principal amount of $500,000 together with $14,148 of accrued and unpaid interest into 240,256 shares of our common stock at a per share price of $2.14. The number of shares was determined by dividing the balance due under the promissory note by the average closing price per share of our shares during the thirty-day period prior to the date of conversion. At June 30, 2025 our obligation to Mr. Lewis under the promissory note was retired.
Current report
Service revenues in the three months ended June 30, 2025 were $3,965,168, compared to $4,126,517 for the same period in 2024, a decrease of $161,349, or 3.9%. The decrease in revenue during the three months ended June 30, 2025 is due to a $152,049 decrease in revenues from the acquired Aegis maintenance contracts and a $9,300 decrease in revenues from existing service contracts.
Current report
Cost of sales in the three months ended June 30, 2025, was $4,832,328 compared to $2,648,632 for the same period in 2024, an increase of $2,183,696, or 82.4%. The increase in cost of sales is due to increased product shipments and increased service contract maintenance costs due to higher labor and material costs. During the three months ended June 30, 2025, our gross margin decreased to 33.8% compared to 44.0% for the same period in 2024, a 10.2% percentage point decrease due to increased labor and material costs incurred in both Products and Services.
Current report
Cost of sales for Products in the three months ended June 30, 2025, was $2,232,155 compared to $171,982 for the same period in 2024, an increase of $2,060,173, or 1,197.9% due to increased sales of Products and higher material and labor costs. Products revenue and cost of sales in the three months ended June 30, 2024, were impacted due to the relocation of our manufacturing operations in April 2024, which significantly reduced our production capacity. During the three months ended June 30, 2025, our Products gross margin was 29.3% compared to (43.7)% for the same period in 2024, a 73.0% percentage point increase. The increase in margin is due to increased revenues in 2025.
Current report
Operating expenses increased $321,232, or 9.0%, to $3,874,354 in the three months ended June 30, 2025 compared to $3,553,122 in the same period in 2024.
Current report
Six Months Ended June 30, 2025 Compared to the Six Months Ended June 30, 2024
Current report
Revenues
Current report
Total revenues for the six months ended June 30, 2025 were $14,572,590 compared to $10,913,883 for the same period in 2024, an increase of $3,658,707 or 33.5% year over year.
Current report
Cost of Sales
Current report
Cost of sales for Services in the six months ended June 30, 2025 was $4,728,635 compared to $4,284,072 for the same period in 2024, an increase of 444,563, or 10.4%, due to increased labor and material costs. During the six months ended June 30, 2025, our Services gross margin decreased to 42.4% compared to 47.4% in the same period in 2024, a 5.0% percentage point decrease. The decrease in gross margin percent is due to increased labor and material costs incurred in 2025.
Current report
Cost of sales for Energy Production in the six months ended June 30, 2025, was $440,518 compared to $753,475 for the same period in 2024, a decrease of $312,957, or 41.5%. During the six months ended June 30, 2025, our Energy Production gross margin decreased to 34.6% compared to 35.2% for the same period in 2024, a 0.6% percentage point decrease. The decrease in the energy production gross margin is due to lower revenue and increased repair costs incurred to restart energy production sites which were shut down for repairs in the six months ended June 30, 2025, compared to the same period in 2024.
Current report
Operating Expenses
Current report
Operating expenses increased $510,976, or 7.1%, to $7,689,638 in the six months ended June 30, 2025, compared to $7,178,662 in the same period in 2024.
Current report
The gain on asset dispositions for the six months ended June 30, 2025 was $280 compared to $4,028 for the six months ended June 30, 2024.
Current report
Income (loss) from Operations
Current report
Other Income (Expense), net
Current report
Other expense, net for the six months ended June 30, 2025, was $109,851 compared to other expense net of $52,141 for the same period in 2024, an increase of $57,710, due to a $33,940 increase in interest due to borrowings under our related party notes and lease financing and a $23,770 increase in currency exchange losses in the six months ended June 30, 2025.
Current report
Provision for State Income Taxes
Current report
Non-controlling Interest
Current report
On July 21, 2025, we closed on a firm commitment underwitten public offering of 3,985,000 shares of common stock,$0.001 par value per share ("Common Stock"), including an additional 485,000 shares of common stock to cover over-allotments, at a price to the public of $5.00 per share, pursuant to an underwriting agreement, dated July 18, 2025, between us and Roth Capital Partners, LLC, as sole underwriter and manager for the offering. The net proceeds of the offering, after deducting underwriting discounts and commissions and estimated offering expenses were approximately $18,160,750. See "Note 14. Subsequent Events" to the Notes to the Condensed Consolidated Financial Statements.
Current report
On July 21, 2025, we closed on a firm commitment underwitten public offering of 3,985,000 shares of common stock, $.001 par value per share ("Common Stock"), including an additional 485,000 shares of common stock to cover over-allotments, at a price to the public of $5.00 per share, pursuant to an underwriting agreement, dated July 18, 2025, between us and Roth Capital Partners, LLC, as sole underwriter and manager for the offering. The net proceeds of the offering, after deducting underwriting discounts and commissions and estimated offering expenses were approximately $18,160,750. See "Note 14. Subsequent Events" to the Notes to the Condensed Consolidated Financial Statements.
Removed paragraphs (9)
Previous report
First Quarter of 2025 Compared to First Quarter of 2024
Previous report
Products
Previous report
Services
Previous report
Energy Production
Previous report
Products
Previous report
Services
Previous report
Energy Production
Previous report
Operating expenses increased $189,742, or 5.2%, to $3,815,284 in the three months ended March 31, 2025 compared to $3,625,542 in the same period in 2024.
Previous report
At our current operational level, we believe existing resources, including cash and cash flows from operations and the proceeds of our related party notes will be sufficient to meet our working capital requirements for the next twelve months. See "Liquidity and Capital Resources - Sources of Liquidity" above. However, we may require additional cash to fund operations and grow our business, including to fund the development of our hybrid-drive air-cooled chiller and our development of additional markets for our products. In such event, we may be required to raise additional financing through one or more equity or debt financings. There is no assurance we will be able to raise such financing or upon terms that are acceptable to us or at all. If adequate financing is not available, we may be required to implement cost-cutting strategies, delay production, curtail research and development efforts, or implement other measures which may adversely affect our results of operations, financial condition, and the price of our stock. (See also"Note 2 to the Condensed Consolidated Financial Statements" and in our Consolidated Financial Statements for the year ended December 31, 2024, included in our 2024 Form 10-K.)
Reworded paragraphs (32)
Previous wording
This Management’s Discussion and Analysis of Financial Condition and Results of Operations and other parts of this Quarterly Report on Form 10-Q (“Form 10-Q”) contain forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, that involve risks and uncertainties. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. Forward-looking statements can also be identified by words such as “future,” “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “will,” “would,” “could,” “can,” “may,” and similar terms. Forward-looking statements are not guarantees of future performance and our actual results may differ significantly from the results discussed in the forward-looking statements. Such forward-looking statements include, among other things, demand for our products and services, the availability of incentives, rebates, and tax benefits relating to our products, changes in the regulatory environment relating to our products, competing technological developments, and the availability of financing to fund our operations and growth. Factors that might cause such differences include, but are not limited to, those discussed in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2024 (“2024 Form 10-K”), as supplemented, and Part II, Item 1A of this Form 10-Q, in each case under the heading “Risk Factors.” The following discussion should be read in conjunction with the 2024 Form 10-K filed with the Securities and Exchange Commission (“SEC”) and the condensed consolidated financial statements and accompanying notes included in Part I, Item 1 of this Form 10-Q. Each of the terms "we,” “our,” “us,” "Tecogen," or "Company" as used herein refer collectively to Tecogen Inc. and our wholly owned subsidiaries, unless otherwise stated. While we may elect to update forward-looking statements in the future, we specifically disclaim any obligation to do so, even if our estimates change, and you should not rely on those forward-looking statements as representing ours views as of any date subsequent to the date of the filing of this Form 10-Q.
Current wording
This Management’s Discussion and Analysis of Financial Condition and Results of Operations and other parts of this Quarterly Report on Form 10-Q (“Form 10-Q”) contain forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, that involve risks and uncertainties. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. Forward-looking statements can also be identified by words such as “future,” “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “will,” “would,” “could,” “can,” “may,” and similar terms. Forward-looking statements are not guarantees of future performance and our actual results may differ significantly from the results discussed in the forward-looking statements. Such forward-looking statements include, among other things, demand for our products and services, the availability of incentives, rebates, and tax benefits relating to our products, changes in the regulatory environment relating to our products, competing technological developments, and the availability of financing to fund our operations and growth. Factors that might cause such differences include, but are not limited to, those discussed in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2024 (“2024 Form 10-K”), as supplemented, and Part II, Item 1A of this Form 10-Q, in each case under the heading “Risk Factors.” The following discussion should be read in conjunction with the 2024 Form 10-K filed with the Securities and Exchange Commission (“SEC”) and the condensed consolidated financial statements and accompanying notes included in Part I, Item 1 of this Form 10-Q. Each of the terms "we,” “our,” “us,” "Tecogen," or "Company" as used herein refer collectively to Tecogen Inc. and our wholly owned subsidiaries, unless otherwise stated. While we may elect to update forward-looking statements in the future, we specifically disclaim any obligation to do so, even if our estimates change, and you should not rely on those forward-looking statements as representing our views as of any date subsequent to the date of the filing of this Form 10-Q.
Previous wording
On April 30, 2025, we announced that shares of our common stock were approved for listing on the NYSE American LLC ("NYSE American") stock exchange. On May 6, 2025, our common stock began trading on the NYSE American under our current symbol "TGEN."
Current wording
On April 30, 2025, we announced that shares our shares of common stock had been approved for listing on the NYSE American LLC ("NYSE American"), stock exchange. On May 6, 2025, our common stock began trading on the NYSE American under our current symbol "TGEN."
Previous wording
On March 15, 2023, we entered into an agreement ("Agreement") with Aegis Energy Services, LLC (“Aegis”) pursuant to which Aegis agreed to assign to us and we agreed to assume certain Aegis maintenance agreements, we agreed to purchase certain assets, and related matters (“Acquisition”). On April 1, 2023, the Acquisition closed. Under the Agreement, we agreed to acquire from Aegis and assume Aegis' rights and obligations arising on or after April 1, 2023 under maintenance agreements pursuant to which Aegis provided maintenance services for approximately 200 cogeneration systems, and acquired certain vehicles and inventory used by Aegis in connection with the performance of such maintenance services, and following closing, hired eight (8) Aegis employees to provide services with respect to such maintenance agreements. At closing, we acquired eight (8) Aegis vehicles for consideration consisting of $170,000 in cash. Also, we issued credits against outstanding accounts receivable due from Aegis in the amount of $300,000 for the acquisition of inventory that Aegis used to provide maintenance services.
Current wording
On March 15, 2023, we entered into an agreement ("Assumption Agreement") with Aegis Energy Services, LLC (“Aegis”), pursuant to which Aegis agreed to assign to us and we agreed to assume certain Aegis maintenance agreements, we agreed to purchase certain assets from Aegis, and related matters (“Acquisition”). On April 1, 2023, the Acquisition closed. Under the Assumption Agreement, we agreed to acquire from Aegis and assume Aegis’ rights and obligations arising on or after April 1, 2023, under maintenance agreements pursuant to which Aegis provided maintenance services to third parties for approximately 200 cogeneration systems and we agreed to acquire from Aegis certain vehicles and inventory used by Aegis in connection with the performance of its maintenance services. At closing, we acquired eight (8) Aegis vehicles for consideration consisting of $170,000 in cash. Also, we issued credits against outstanding accounts receivable due from Aegis in the amount of $300,000 for the acquisition of inventory that Aegis used to provide maintenance services. At closing, we hired eight (8) Aegis employees who, following the closing, have agreed to continue to provide maintenance services relating to the cogeneration systems covered by the maintenance agreements assumed pursuant to the Assumption Agreement. Following the closing and for a period of up to seven (7) years, we agreed to pay Aegis a percentage of the revenue collected for maintenance services provided pursuant to the maintenance agreements acquired from Aegis. Further, prior to December 31, 2023, we had the right to acquire and assume additional Aegis’ maintenance agreements for cogeneration systems on substantially similar terms and conditions. The Assumption Agreement contained certain indemnification provisions and agreements on the part of Aegis and for each party to cooperate with each other and provide certain transitional assistance. We acquired the Aegis maintenance agreements to expand our Service portfolio and to benefit from the long-term contract revenue stream generated by these agreements.
Previous wording
On February 1, 2024, Tecogen and Aegis amended the Agreement to add eighteen (18) additional maintenance service agreements (the "Amendment"). The Amendment includes an undertaking by Aegis to use commercially reasonable efforts to support and assist our execution of maintenance service agreements for an additional thirty-six (36) cogeneration units sold to customers by Aegis.
Current wording
On February 1, 2024, Tecogen and Aegis amended the Assumption Agreement to add eighteen (18) additional maintenance contracts assumed by us ("February 2024 Amendment") which includes an undertaking by Aegis to use commercially reasonable efforts to support and assist our execution of maintenance service agreements for an additional thirty-six (36) cogeneration units sold to customers by Aegis.
Previous wording
On May 1, 2024, Tecogen and Aegis amended the Agreement to add thirty-one (31) additional maintenance contracts (the "Second Amendment"). The Second Amendment includes an undertaking by Aegis to use commercially reasonable efforts to support and assist our execution of maintenance service agreements for an additional forty-eight (48) cogeneration units sold to customers by Aegis.
Current wording
On May 1, 2024, Tecogen and Aegis amended the Assumption Agreement to add thirty-one (31) additional maintenance contracts assumed by us ("May 2024 Amendment") which includes an undertaking by Aegis to use commercially reasonable efforts to support and assist our execution of maintenance service agreements for an additional forty-eight (48) cogeneration units sold to customers by Aegis.
Previous wording
During the third quarter of 2021, we began development of the Tecochill Hybrid-Drive Air-Cooled Chiller. We recognized that there were many applications where the customer wanted an easy to install roof top chiller. Using the inverter design from our InVerde e+ cogeneration module, the system can simultaneously take two inputs, one from the grid or a renewable energy source and one from our natural gas engine. This allows a customer to seek the optimum blend of operational cost savings and greenhouse gas benefits while providing added resiliency from two power sources. We introduced the Tecochill Hybrid-Drive Air-Cooled Chiller at the AHR Expo in February 2023 and received an order on February 8, 2024 for three hybrid-drive air-cooled chillers for a utility company in Florida. In March 2024, the US Patent and Trademark Office granted patent 11,936,327: "Hybrid Power System With Electric Generator and Auxiliary Power Source." We anticipate initial shipment of the hybrid-drive air-cooled chiller in the second quarter of 2025.
Current wording
During the third quarter of 2021, we began development of the Tecochill Hybrid-Drive Air-Cooled Chiller. We recognized that there were many applications where the customer wanted an easy to install rooftop chiller. Using the inverter design from our InVerde e+ cogeneration module, the system can simultaneously take two inputs, one from the grid or a renewable energy source and one from our natural gas engine. This allows a customer to seek the optimum blend of operational cost savings and greenhouse gas benefits while providing added resiliency from two power sources. We introduced the Tecochill Hybrid-Drive Air-Cooled Chiller at the AHR Expo in February 2023 and received an order on February 8, 2024 for three hybrid-drive air-cooled chillers for a utility company in Florida. In March 2024, the US Patent and Trademark Office granted patent 11,936,327: "Hybrid Power System With Electric Generator and Auxiliary Power Source." Initial shipments of the hybrid-drive air-cooled chiller were delivered to customers in the second quarter of 2025.
Previous wording
We have no operations or customers in Russia, the Ukraine, or in the Middle East. The higher energy prices for natural gas as a result of the wars in Ukraine and the Middle East may affect the performance of our Energy Production Segment and the cost differential between grid generated energy and natural gas sourced energy using our cogeneration equipment. However, we have also seen higher electricity prices as much of the electricity production in the United States is generated from fossil fuels. If the electricity prices continue to rise, the economic savings generated by our products are likely to increase. In addition to the direct result of changes in natural gas and electricity prices, the war in Ukraine and the conflict in the Middle East may result in higher cybersecurity risks, increased or ongoing supply chain challenges, and volatility related to the trading prices of commodities.
Current wording
We have no operations or customers in Russia, the Ukraine, or in the Middle East. The higher energy prices for natural gas as a result of the wars in Ukraine and the Middle East may affect the performance of our Energy Production Segment and the cost differential between grid generated energy and natural gas sourced energy using our cogeneration equipment. However, we have also seen higher electricity prices as much of the electricity production in the United States is generated from fossil fuels. If electricity prices continue to rise, the economic savings generated by our products are likely to increase. In addition to the direct result of changes in natural gas and electricity prices, the war in Ukraine and the conflict in the Middle East may result in higher cybersecurity risks, increased or ongoing supply chain challenges, and volatility related to the trading prices of commodities.
Previous wording
Total revenues for the three months ended March 31, 2025 were $7,277,770 compared to $6,186,097 for the same period in 2024, an increase of $1,091,673 or 17.6% year over year.
Current wording
Total revenues for the three months ended June 30, 2025 were $7,294,820 compared to $4,727,787 for the same period in 2024, an increase of $2,567,033 or 54.3% year over year.
Previous wording
Products revenues in the three months ended March 31, 2025 were $2,533,809 compared to $1,491,398 for the same period in 2024, an increase of $1,042,411, or 69.9%. The increase in revenue during the three months ended March 31, 2025 is due to an increase in chiller sales of $717,136, an increase in cogeneration sales of $306,140, and an increase in engineered accessory sales of $19,135. Our Products sales mix, as well as product revenue, can vary significantly from period to period as our products are high dollar, low volume sales.
Current wording
Products revenues in the three months ended June 30, 2025, were $3,155,323 compared to $119,673 for the same period in 2024, an increase of $3,035,650, or 2,536.6%. The increase in revenue during the three months ended June 30, 2025 is due to an increase in chiller sales of $2,015,893, which included the initial deliveries of our hybrid-drive air-cooled chiller, an increase in cogeneration sales of $947,162, and an increase in engineered accessory sales of $72,595. Products revenue in the three months ended June 30, 2024, were impacted due to the relocation of our manufacturing operations in April 2024, which significantly reduced our production capacity. Our Products sales mix, as well as product revenue, can vary significantly from period to period as our products are high dollar, low volume sales.
Previous wording
Energy Production revenues in the three months ended March 31, 2025 were $498,939, compared to $680,389 for the same period in 2024, a decrease of $181,450, or 26.7%. The decrease in Energy Production revenue is due to the expiration of several energy production contracts in late 2024 and the temporary shutdown of a few energy production sites for repairs in the three months ended March 31, 2025.
Current wording
Energy Production revenues in the three months ended June 30, 2025 were $174,329, compared to $481,597 for the same period in 2024, a decrease of $307,268, or 63.8%. The decrease in Energy Production revenue is due to the expiration of several energy production contracts in late 2024 and the temporary shutdown of a few energy production sites for repairs in the three months ended June 30, 2025.
Previous wording
Cost of sales for Services in the three months ended March 31, 2025 was $2,258,898 compared to $2,092,257 for the same period in 2024, an increase of $166,641, or 8.0%, due to increased labor and material costs. During the three months ended March 31, 2025, our Services gross margin decreased to 46.8% compared to 47.9% in the same period in 2024, a 1.1% percentage point decrease. The decrease in gross margin percent is due to increased labor and material costs incurred in 2025.
Current wording
Cost of sales for Services in the three months ended June 30, 2025, was $2,469,737 compared to $2,191,815 for the same period in 2024, an increase of $277,922, or 12.7%, due to increased labor and material costs. During the three months ended June 30, 2025, our Services gross margin decreased to 37.7% compared to 46.9% in the same period in 2024, a 9.2% percentage point decrease. The decrease in gross margin percent is due to increased labor and material costs incurred in 2025.
Previous wording
Cost of sales for Energy Production in the three months ended March 31, 2025 was $310,082 compared to $468,640 for the same period in 2024, a decrease of $158,558, or 33.8%. During the three months ended March 31, 2025 our Energy Production gross margin increased to 37.9% compared to 31.1% for the same period in 2024, a 6.8% percentage point increase. The increase in the energy production gross margin is due to decreased gas and maintenance costs due to the expiration of our energy production contracts at certain of our Energy Production sites in the three months ended March 31, 2025 compared to the same period in 2024.
Current wording
Cost of sales for Energy Production in the three months ended June 30, 2025, was $130,436 compared to $284,835 for the same period in 2024, a decrease of $154,399, or 54.2%. During the three months ended June 30, 2025, our Energy Production gross margin decreased to 25.2% compared to 40.9% for the same period in 2024, a 15.7% percentage point decrease. The decrease in the energy production gross margin is due to increased repair costs incurred to restart energy production sites which were shut down for repairs in the three months ended June 30, 2025, compared to the same period in 2024.
Previous wording
Selling expenses consist of sales staff, commissions, marketing, travel and other selling related expenses. Selling expenses for the three months ended March 31, 2025 were $594,481 compared to $529,669 for the same period in 2024, an increase of $64,812 or 12.2%, due to a $119,499 increase in sales commission, offset partially by a $51,657 reduction in payroll and related benefit costs.
Current wording
Selling expenses consist of sales staff, commissions, marketing, travel and other selling related expenses. Selling expenses for the three months ended June 30, 2025, were $514,735 compared to $405,277 for the same period in 2024, an increase of $109,458 or 27.0%, due to a $115,811 increase in sales commission, offset partially by a $29,197 reduction in payroll and related benefit costs.
Previous wording
The gain on asset dispositions for the three months ended March 31, 2024 of $7,391 represents the excess of insurance proceeds received over the net book value of assets for auto claims filed during the period.
Current wording
The gain on asset dispositions for the three months ended June 30, 2025, was $280 compared to a loss on asset dispositions of $3,363 for the three months ended June 30, 2024.
Previous wording
Our loss from operations for the three months ended March 31, 2025 was $594,244 compared to a loss from operations of $1,049,885 for the same period in 2024, a decrease of $455,641. The decrease is due to higher Products and Services segment revenues and increased gross profit, offset partially by a $189,742 increase in operating expenses.
Current wording
Our loss from operations for the three months ended June 30, 2025, was $1,411,862 compared to a loss from operations of $1,473,967 for the same period in 2024, a decrease of $62,105, or 4.2%. The decrease is due to higher Products and Services segment revenues and increased gross profit, offset partially by a $321,232 increase in operating expenses.
Previous wording
Other expense, net for the three months ended March 31, 2025 was $65,320 compared to other expense net of $15,668 for the same period in 2024, an increase of $49,652, due to a $13,656 increase in interest due to borrowings under our related party note and lease financing and a decrease of $37,498 in unrealized income on marketable securities in the three months ended March 31, 2025.
Current wording
Other expense, net for the three months ended June 30, 2025, was $44,531 compared to other expense net of $36,472 for the same period in 2024, an increase of $8,059, due to a $20,284 increase in interest expense due to borrowings under our related party notes and lease financing and a $25,272 increase in currency exchange losses, offset partially by a decrease of $37,497 in unrealized losses on marketable securities in the three months ended June 30, 2025.
Previous wording
The provision for state income taxes for the three months ended March 31, 2025 and 2024 was $925 and $22,063, respectively, and represents estimated income tax payments, net of refunds, to various states.
Current wording
The provision for state income taxes for the three months ended June 30, 2025 and 2024 was $16,762 and $37, respectively, and represents estimated income tax payments, net of refunds, to various states.
Previous wording
The loss attributable to the non-controlling interest was $567 for the three months ended March 31, 2025 which represents the non-controlling interest portion of American DG Energy's 51% owned subsidiary, American DG New York, LLC. For the same period in 2024, income attributable to the non-controlling interest was $17,351. The loss in the three months ended March 31, 2025 is attributable to the expiration of an Energy Production contract at one of the Energy Production sites.
Current wording
The loss attributable to the non-controlling interest was $9,050 for the three months ended June 30, 2025, which represents the non-controlling interest portion of American DG Energy's 51% owned subsidiary, American DG New York, LLC. For the same period in 2024, income attributable to the non-controlling interest was $28,320. The loss in the three months ended June 30, 2025, is attributable to the expiration of an Energy Production contract at one of the Energy Production sites and the temporary shutdown of a site for repairs.
Previous wording
The net loss attributable to Tecogen for the three months ended March 31, 2025 was a net loss of $659,922 compared to a net loss of $1,104,967 for the same period in 2024, a decrease of $445,045, or 40.3%. The decrease in the net loss is due to increased revenue and gross profit from our Products and Services segments, offset partially by a $189,742 increase in operating expenses.
Current wording
The net loss attributable to Tecogen for the three months ended June 30, 2025, was a net loss of $1,464,105 compared to a net loss of $1,538,796 for the same period in 2024, a decrease of $74,691, or 4.9%. The decrease in the net loss is due to increased revenue and gross profit from our Products and Services segments, offset partially by a $321,232 increase in operating expenses.
Previous wording
Service revenues in the three months ended March 31, 2025 were $4,245,022, compared to $4,014,310 for the same period in 2024, an increase of $230,712, or 5.7%. The increase in revenue during the three months ended March 31, 2025 is due to a $297,182 increase in revenues from existing service contracts, offset by a $66,470 reduction in revenue from the acquired Aegis maintenance contracts.
Current wording
Service revenues in the six months ended June 30, 2025, were $8,210,190, compared to $8,140,827 for the same period in 2024, an increase of $69,363, or 0.9%. The increase in revenue during the six months ended June 30, 2025, is due to a $287,882 increase in revenues from existing service contracts, offset by a $218,519 reduction in revenue from the acquired Aegis maintenance contracts.
Previous wording
Cost of sales in the three months ended March 31, 2025 was $4,056,730 compared to $3,610,440 for the same period in 2024, an increase of $446,290, or 12.4%. The increase in cost of sales is due to increased product shipments and increased service contract maintenance costs due to higher labor and material costs. During the three months ended March 31, 2025 our gross margin increased to 44.3% compared to 41.6% for the same period in 2024, a 2.7% percentage point increase due to higher service contract revenue.
Current wording
Cost of sales in the six months ended June 30, 2025, was $8,889,058 compared to $6,259,072 for the same period in 2024, an increase of $2,629,986, or 42.0%. The increase in cost of sales is due to increased product shipments and increased service contract maintenance costs due to higher labor and material costs. During the six months ended June 30, 2025, our gross margin decreased to 39.0% compared to 42.7% for the same period in 2024, a 3.7% percentage point decrease due to higher services labor and material costs.
Previous wording
Cost of sales for Products in the three months ended March 31, 2025 was $1,487,750 compared to $1,049,543 for the same period in 2024, an increase of $438,207, or 41.8% due to increased sales of Products and higher material and labor costs. During the three months ended March 31, 2025, our Products gross margin was 41.3% compared to 29.6% for the same period in 2024, a 11.7% percentage point increase. The increase in margin is a function of price increases instituted in 2024.
Current wording
Cost of sales for Products in the six months ended June 30, 2025, was $3,719,905 compared to $1,221,525 for the same period in 2024, an increase of $2,498,380, or 204.5% due to increased sales of Products and higher labor and material costs. During the six months ended June 30, 2025, our Products gross margin was 34.6% compared to 24.2% for the same period in 2024, a 10.4% percentage point increase. The increase in margin is due to increased revenues in 2025.
Previous wording
General and administrative expenses consist of executive staff, accounting and legal expenses, office space, general insurance and other administrative expenses. General and administrative expenses for the three months ended March 31, 2025 were $2,928,135 compared to $2,848,568 for the same period in 2024, an increase of $79,567 or 2.8%, due to a $267,613 increase in payroll, benefits and recruitment costs and a $55,951 increase in travel and vehicles expense, offset partially by a $137,727 decrease in facility costs, due to the transition to our new facility in 2024, a $89,258 reduction in credit losses, due to the recovery of $75,000 recognized in 2025 and a reduction in a litigation reserve of $79,006 due to the settlement of the litigation.
Current wording
General and administrative expenses consist of executive staff, accounting and legal expenses, office space, general insurance and other administrative expenses. General and administrative expenses for the six months ended June 30, 2025, were $6,019,310 compared to $5,746,559 for the same period in 2024, an increase of $272,751 or 4.7%, due to a $442,589 increase in payroll, benefits and recruitment costs, a $106,741 increase in depreciation and amortization, and a $100,770 increase in travel and vehicles expense, offset partially by a $198,292 decrease in facility costs, due to the transition to our new facility in 2024, a $94,063 reduction in credit losses, due to the recovery of $75,000 recognized in 2025 and relocation costs of $83,055 incurred in 2024, a $58,688 reduction in professional fees and a $29,321 decrease in insurance premiums.
Previous wording
Research and development expenses consist of engineering and technical staff, materials, outside consulting and other related expenses. Research and development expenses for the three months ended March 31, 2025 were $292,668 compared to $254,696 for the same period in 2024, an increase of $37,972 or 14.9%, due to a $42,905 increase and payroll and related benefit costs.
Current wording
Research and development expenses consist of engineering and technical staff, materials, outside consulting and other related expenses. Research and development expenses for the six months ended June 30, 2025, were $561,392 compared to $501,185 for the same period in 2024, an increase of $60,207 or 12.0%, due to a $75,571 increase and payroll and related benefit costs.
Previous wording
During the three months ended March 31, 2025, we incurred a loss from operations of $594,244 compared to a net loss from operations of $1,049,885 in the same period in 2024. Cash flows from operations decreased $1,421,619 during the three months ended March 31, 2025 compared to the same period in 2024. As of March 31, 2025, we had cash and cash equivalents of $4,066,793 compared to cash and cash equivalents of $5,405,233 as of December 31, 2024, a decrease of $1,338,440 or 24.8%, and an accumulated deficit as of March 31, 2025, of $48,299,816. In addition to cash from operations, we have relied upon loans from related parties to help fund our operations. See Note 11. Related Party Notes of the Notes to the Condensed Consolidated Financial Statements and "Recent Developments - Related Party Notes,"above.
Current wording
During the six months ended June 30, 2025, we incurred a loss from operations of $2,006,106 compared to a net loss from operations of $2,523,851 in the same period in 2024. Cash flows from operations decreased $3,865,917 during the six months ended June 30, 2025, compared to the same period in 2024. As of June 30, 2025, we had cash and cash equivalents of $1,640,864 compared to cash and cash equivalents of $5,405,233 as of December 31, 2024, a decrease of $3,764,369 or 69.6%, and an accumulated deficit as of June 30, 2025, of $49,763,921. In addition to cash from operations, we have relied upon loans from related parties to help fund our operations. See Note 11. Related Party Notes of the Notes to the Condensed Consolidated Financial Statements and "Recent Developments - Related Party Notes,"above.
Previous wording
Consolidated working capital at March 31, 2025 was $5,667,549 compared to $5,329,650 at December 31, 2024, an increase of $337,899, or 6.3%. Included in working capital were cash and cash equivalents of $4,066,793 at March 31, 2025, compared to $5,405,233 at December 31, 2024, a decrease of $1,338,440, or 24.8%.
Current wording
Consolidated working capital at June 30, 2025, was $5,070,741 compared to $5,329,650 at December 31, 2024, a decrease of $258,909, or 4.9%. Included in working capital were cash and cash equivalents of $1,640,864 at June 30, 2025, compared to $5,405,233 at December 31, 2024, a decrease of $3,764,369, or 69.6%.
Previous wording
Cash used by operating activities for the three months ended March 31, 2025 was $1,173,403 compared to cash generated of $248,216 by operating activities for the same period in 2024, a decrease of $1,421,619. Our accounts receivable and unbilled revenue balances were $5,849,511 and $126,738, respectively, at March 31, 2025 compared to $6,026,545 and $398,898 at December 31, 2024, generating $524,194 of cash.
Current wording
Cash used by operating activities for the six months ended June 30, 2025, was $3,775,620 compared to cash generated of $90,297 by operating activities for the same period in 2024, a decrease of $3,865,917. Our accounts receivable and unbilled revenue balances were $6,640,483 and $126,738, respectively, at June 30, 2025, compared to $6,026,545 and $398,898 at December 31, 2024, using $266,778 of cash.
Previous wording
Accounts payable increased to $4,346,918 as of March 31, 2025 from $4,142,678 at December 31, 2024, providing $204,237 in cash flow from operations. The increase in accounts payable was due to increased material procurement in anticipation of future Products shipments. Deferred revenue decreased to $6,826,058 as of March 31, 2025 compared to $7,867,082 as of December 31, 2024, due to the application of customer deposits against accounts receivables as Products ship, using $1,041,023 of cash from operations. We expect accounts payable and deferred revenue to fluctuate with routine changes in operations.
Current wording
Accounts payable increased to $4,946,218 as of June 30, 2025, from $4,142,678 at December 31, 2024, providing $803,540 in cash flow from operations. The increase in accounts payable is due to increased material procurement in anticipation of future Products shipments. Deferred revenue decreased to $5,673,475 as of June 30, 2025, compared to $7,867,082 as of December 31, 2024, due to the application of customer deposits against accounts receivables as Products ship, using $2,193,607 of cash from operations. We expect accounts payable and deferred revenue to fluctuate with routine changes in operations.
Previous wording
During the three months ended March 31, 2025 we used $132,020 of cash to purchase property, plant and equipment, primarily for improvements required at the North Billerica facility, and distributed $32,889 to the 49% non-controlling interest holders of American DG New York LLC. During the three months ended March 31, 2024 we used $104,952 of cash for improvements required to the North Billerica facility and received $33,013 in proceeds from the disposition of assets, including insurance proceeds.
Current wording
During the six months ended June 30, 2025, we used $277,989 of cash to purchase property, plant and equipment, primarily for improvements required at the North Billerica facility, and distributed $42,956 to the 49% non-controlling interest holders of American DG New York LLC. During the six months ended June 30, 2024, we used $556,636 of cash for improvements required to the North Billerica facility and received $36,213 in proceeds from the disposition of assets, including insurance proceeds.
Previous wording
During the three months ended March 31, 2025 we used $38,628 of cash in payment of finance lease principal and received $38,500 of proceeds from the exercise of stock options. During the three months ended March 31, 2024 we used $17,112 of cash in payment of finance lease principal.
Current wording
During six months ended June 30, 2025, we used $63,010 of cash in payment of finance lease principal and received $394,926 of proceeds from the exercise of stock options. During the six months ended June 30, 2024, we used $30,577 of cash in payment of finance lease principal.
Previous wording
As of March 31, 2025, our backlog of product and installation projects, excluding service contracts, was $9,522,015, consisting of $9,091,587 of purchase orders received by us and $430,428 of projects in which the customer's internal approval process is complete, financial resources have been allocated and the customer has made a firm verbal commitment that the order is in the process of execution. As of March 31, 2024, our backlog of product and installation projects, excluding service contracts, was $5,554,599 consisting of $5,122,266 of purchase orders received by us and $432,333 of projects in which the customer's internal approval process is complete, financial resources have been allocated and the customer has made a firm verbal commitment that the order is in the process of execution. Backlog at the beginning of any period is not necessarily indicative of future performance. Our presentation of backlog may differ from other companies in our industry.
Current wording
As of June 30, 2025, our backlog of product and installation projects, excluding service contracts, was $6,215,443, consisting of $6,215,443 of purchase orders received by us. As of June 30, 2024, our backlog of product and installation projects, excluding service contracts, was $5,121,551 consisting of $4,681,231 of purchase orders received by us and $440,320 of projects in which the customer's internal approval process is complete, financial resources have been allocated, and the customer has made a firm verbal commitment that the order is in the process of execution. Backlog at the beginning of any period is not necessarily indicative of future performance. Our presentation of backlog may differ from other companies in our industry.
Previous wording
At March 31, 2025, we had cash and cash equivalents of $4,066,793, a decrease of $1,338,440 or 24.8% from the cash and cash equivalents balance at December 31, 2024.
Current wording
At June 30, 2025, we had cash and cash equivalents of $1,640,864, a decrease of $3,764,369 or 69.6% from the cash and cash equivalents balance at December 31, 2024.
Rearranged current paragraphs (14)
Current report — wording carried from elsewhere
Second Quarter of 2025 Compared to Second Quarter of 2024
Current report — wording carried from elsewhere
General and administrative expenses consist of executive staff, accounting and legal expenses, office space, general insurance and other administrative expenses. General and administrative expenses for the three months ended June 30, 2025 were $3,091,175 compared to $2,897,993 for the same period in 2024, an increase of $193,182 or 6.7%, due to a $174,976 increase in payroll, benefits and recruitment costs, a $66,604 increase in professional fees, a $62,690 increase in depreciation and amortization, and a $44,818 increase in travel and vehicles expense, offset partially by a $61,565 decrease in facility costs, due to the transition to our new facility in 2024, relocation cost of $83,055 incurred in 2024, and a $15,985 decrease in insurance premiums.
Current report — wording carried from elsewhere
Research and development expenses consist of engineering and technical staff, materials, outside consulting and other related expenses. Research and development expenses for the three months ended June 30, 2025, were $268,724 compared to $246,489 for the same period in 2024, an increase of $22,235 or 9.0%, due to a $32,665 increase and payroll and related benefit costs, offset partially by a $11,459 decrease in patent related legal fees.
Current report — wording carried from elsewhere
The following table sets forth for the periods indicated, the percentage of net sales represented by certain items reflected in our condensed consolidated statements of operations:
Current report — wording carried from elsewhere
The following table presents revenue for the periods indicated, by segment and the change from the prior year:
Current report — wording carried from elsewhere
Products revenues in the six months ended June 30, 2025, were $5,689,132 compared to $1,611,071 for the same period in 2024, an increase of $4,078,061, or 253.1%. The increase in revenue during the six months ended June 30, 2025 is due to an increase in chiller sales of $2,733,029, which included the initial deliveries of our hybrid-drive air-cooled chiller, an increase in cogeneration sales of $1,253,302, and an increase in engineered accessory sales of $91,730. Products revenue in the six months ended June 30, 2024, were impacted due to the relocation of our manufacturing operations in April 2024, which significantly reduced our production capacity. Our Products sales mix, as well as product revenue, can vary significantly from period to period as our products are high dollar, low volume sales.
Current report — wording carried from elsewhere
Our service operation revenues grow with the sale of installed systems, since the majority of our product sales are accompanied by a service contract or time and materials agreements. As a result, our “fleet” of units being serviced by our service department grows with product sales.
Current report — wording carried from elsewhere
Energy Production revenues in the six months ended June 30, 2025, were $673,268, compared to $1,161,985 for the same period in 2024, a decrease of $488,717, or 42.1%. The decrease in Energy Production revenue is due to the expiration of several energy production contracts in late 2024 and the temporary shutdown of a few energy production sites for repairs in the six months ended June 30, 2025.
Current report — wording carried from elsewhere
Selling expenses consist of sales staff, commissions, marketing, travel and other selling related expenses. Selling expenses for the six months ended June 30, 2025, were $1,109,216 compared to $934,946 for the same period in 2024, an increase of $174,270 or 18.6%, due to a $235,310 increase in sales commission, offset partially by a $80,855 reduction in payroll and related benefit costs.
Current report — wording carried from elsewhere
Our loss from operations for the six months ended June 30, 2025, was $2,006,106 compared to a loss from operations of $2,523,851 for the same period in 2024, a decrease of $517,745, or 20.5%. The decrease is due to higher Products and Services segment revenues and increased gross profit, offset partially by a $510,976 increase in operating expenses.
Current report — wording carried from elsewhere
The provision for state income taxes for the six months ended June 30, 2025 and 2024 was $17,687 and $22,100, respectively, and represents estimated income tax payments, net of refunds, to various states.
Current report — wording carried from elsewhere
The loss attributable to the non-controlling interest was $9,617 for the six months ended June 30, 2025, which represents the non-controlling interest portion of American DG Energy's 51% owned subsidiary, American DG New York, LLC. For the same period in 2024, income attributable to the non-controlling interest was $45,671. The loss in the six months ended June 30, 2025, is attributable to the expiration of a contract at one of the Energy Production sites and the temporary shutdown of a site for repairs.
Current report — wording carried from elsewhere
Net Income (loss) Attributable to Tecogen Inc.
Current report — wording carried from elsewhere
The net loss attributable to Tecogen Inc., for the six months ended June 30, 2025, was a net loss of $2,124,027 compared to a net loss of $2,643,763 for the same period in 2024, a decrease of $519,736, or 19.7%. The decrease in the net loss is due to increased revenue and gross profit from our Products and Services segments, offset partially by a $510,976 increase in operating expenses.