Tecogen Inc. reported a decline in financial performance for the three and nine months ended September 30, 2024, compared to the same periods in 2023. Total revenues for the third quarter of 2024 were $5.6 million, down from $7.1 million in Q3 2023. For the nine-month period, revenues decreased to $16.5 million from $19.2 million in the prior year. The drop in revenue was primarily attributed to a significant decline in product revenues, which fell to $1.4 million in Q3 2024 from $2.9 million in Q3 2023, and to $3.0 million for the nine months ended September 30, 2024, compared to $7.1 million in the same period last year.

Gross profit for the third quarter of 2024 was $2.5 million, slightly lower than $2.9 million in Q3 2023. The gross profit margin for the service segment was reported at 46.4%, below the historical range of 53.0% to 55.0%. The company experienced a loss from operations of $(873,223) in Q3 2024, compared to a smaller loss of $(368,294) in Q3 2023. The consolidated net loss for the third quarter was $(895,930), an increase from $(447,227) in the prior year. For the nine-month period, the consolidated net loss rose to $(3.5 million) from $(2.7 million) in 2023.

As of September 30, 2024, total assets were $27.5 million, a slight decrease from $27.8 million at the end of 2023. Current assets also declined to $18.2 million from $20.3 million. Total liabilities increased significantly to $16.3 million from $13.1 million, leading to a decrease in stockholders' equity to $11.3 million from $14.7 million.

In terms of strategic developments, Tecogen completed the acquisition of Aegis Energy Services, LLC on April 1, 2023, which has since contributed to the services segment. Revenue from Aegis maintenance contracts for the third quarter of 2024 was $537,353, with a gross profit of $367,982. The company has also authorized a private placement equity offering of up to $2 million to existing shareholders, aimed at bolstering its financial position.

Cash and cash equivalents at the end of the reporting period were $1.3 million, down from $1.4 million at the end of 2023. The company reported a working capital decrease to $6.3 million from $9.8 million. Management anticipates that cash flows from operations, along with proceeds from the private placement, will be sufficient to fund operations over the next twelve months, although this outcome is not guaranteed.