TAMPA, FL -- (Marketwire) -- 08/18/10 -- MagneGas Corporation ("MagneGas" or the "Company") (OTCBB: MNGA), a producer of a metal working fuel and natural gas alternative made from liquid waste, today announced operating results for the quarter and six months ended June 30, 2010.
Recent Financial Highlights:
- Generated record revenue of $1.3 MM in the second quarter, $1.5 MM for the first six months
- Achieved profitability for the first time: net income of $282,372 and $120,289, respectively
- In July received the first of two $1.0 MM investment installments from China partner DDI (1)
Recent Business Highlights:
- Entered potentially lucrative China market with 20% ownership of joint venture
- Acquired 20% of European and African markets
- Further strengthened competitive advantage through new technological patent(1)
Business Overview:
"We are proud to announce that we achieved in the second quarter that most fundamental of initial goals: profitability," stated MagneGas Chief Financial Officer, Luisa Ingargiola. "We have done so at such an early stage through spending discipline and a strategically sequenced, two-pronged sales approach. The international community has shown an interest in the MagneGas Technology™, so we have focused abroad on equipment sales that can yield large individual payments and thus accelerate revenue growth. We intend to balance this with recurring revenue gas sales in the U.S. -- beginning first with the $1 billion metal working market. We have built a broad distribution network, and now with the financial resources for a concerted marketing push we believe that our superior product can begin to capture market share."
(1) Occurred in third quarter, 2010
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About MagneGas Corporation (www.magnegas.com)
Founded in 2007, Tampa-based MagneGas Corporation (OTCBB: MNGA) is the producer of MagneGas™, a natural gas alternative and metal working fuel made from liquid waste such as sewage, sludge, manure and certain industrial and oil based liquid wastes. The Company's patented Plasma Arc Flow™ process gasifies liquid waste, creating a clean burning fuel that is essentially interchangeable with natural gas, but with lower green house gas emissions. MagneGas™ can be used for metal cutting, cooking, heating or powering bi fuel automobiles.
FORWARD-LOOKING STATEMENTS
The information contained herein includes forward-looking statements. These statements relate to future events 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 safe harbor for forward-looking statements contained in the Securities Litigation Reform Act of 1995 protects companies from liability for their forward-looking statements if they comply with the requirements of the Act.
MagneGas Corporation
STATEMENTS OF OPERATIONS
For the Three and Six Months June 30, 2010 and 2009
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
------------------------- -------------------------
2010 2009 2010 2009
------------ ------------ ------------ ------------
Revenue $ 1,256,192 $ 2,585 $ 1,498,374 $ 4,051
Cost of Sales 388,433 2,289 540,991 3,548
------------ ------------ ------------ ------------
Gross Profit 867,759 296 957,383 503
Operating Expenses:
Advertising 9,708 24,397 19,885 34,772
Selling 117,580 24,572 176,318 29,640
Professional:
technical 73,225 8,893 73,225 11,519
Professional: legal
and accounting 15,676 40,510 37,663 41,599
Rent and overhead 12,233 5,163 23,758 25,223
Office and
administration 85,531 4,088 155,256 5,059
Investor Relations 16,623 1,633 38,409 5,683
Stock-based
compensation 60,666 123,608 186,076 226,328
Research and
development 7,587 15,153 22,150 15,153
Depreciation and
Amortization 14,034 12,117 27,854 24,234
------------ ------------ ------------ ------------
Total Operating
Expenses 412,863 260,134 760,594 419,210
------------ ------------ ------------ ------------
Operating Income
(Loss) 454,896 (259,838) 196,789 (418,707)
Other (Income) and
Expense
Interest expense 224 1,945 1,700 3,448
Sale of Asset(s) - - - -
------------ ------------ ------------ ------------
Total Other (Income)
Expenses 224 1,945 1,700 3,448
------------ ------------ ------------ ------------
Net Loss before tax
benefit 454,672 (261,783) 195,089 (422,155)
Provision for Income
Taxes 172,300 - 74,800 -
------------ ------------ ------------ ------------
Net Income (Loss) $ 282,372 $ (261,783) $ 120,289 $ (422,155)
============ ============ ============ ============
Loss per share, basic
and diluted $ 0.00 $ (0.00) $ 0.00 $ (0.00)
============ ============ ============ ============
Weighted average
number of common
shares 109,805,492 101,726,394 108,229,422 100,717,953
============ ============ ============ ============
MagneGas Corporation
Balance Sheets
December
June 30, 31,
2010 2009
(unaudited) (audited)
------------ ------------
ASSETS
Current Assets
Cash $ 1,046,600 $ 7,338
Accounts receivable, net of allowance for
doubtful accounts of $0 3,892 2,399
Costs and estimated earnings 1,477,853
Inventory, at cost 6,384 8,381
Prepaid & other current assets 5,000 -
------------ ------------
Total Current Assets 2,539,729 18,118
Property and equipment, net of accumulated
depreciation of $3,996 and $375,
respectively 35,191 22,125
Deferred Tax Asset 398,100 472,900
Intangible assets, net of accumulated
amortization 648,189 672,422
Investment in joint venture 490,410 -
------------ ------------
TOTAL ASSETS $ 4,111,619 $ 1,185,565
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable $ 263,658 $ 94,577
Accrued expenses 190,622 77,395
Deferred revenue and customer deposits 1,516,660 100,000
Due to affiliate 10,000 10,000
Note payable to related party 25,838 140,087
------------ ------------
TOTAL LIABILITIES 2,006,778 422,059
------------ ------------
Stockholders' Equity
Preferred stock: $0.001 par; 10,000,000
authorized; 2,000 issued and outstanding 2 2
Common stock: $0.001 par; 900,000,000
authorized; 115,318,802 and 105,954,395 issued
and outstanding, respectively 115,319 105,954
Additional paid-in capital 4,111,199 2,909,518
Issued and unearned stock compensation (58,333) (68,333)
Accumulated deficit (2,063,346) (2,183,635)
------------ ------------
TOTAL STOCKHOLDERS' EQUITY 2,104,841 763,506
------------ ------------
TOTAL LIABILITIES AND EQUITY $ 4,111,619 $ 1,185,565
============ ============
CONTACT:
Cirrus Financial Communications, LLC
Justin K. Davis
(866) 330-MNGA (6642)
Email Contact
www.cirrusfc.com
