Posted On: 10/03/2016 12:28:59 PM
Post# of 45002
GERS - Results of Operations
Net income for the year ended December 31, 2014 was about $2.0 million.
Revenues for the year ended December 31, 2014 were $12.8 million
We generated $8.2 million in gross profit for the year ended December 31, 2014
http://www.otcmarkets.com/edgar/GetFilingHtml...D=10615712
Year Ended December 31, 2014
Compared to
Year Ended December 31, 2013
Quote:
Revenues for the year ended December 31, 2014 were $12.8 million as compared to $15.5 million generated during the year ended December 31, 2013. The decrease in revenue during 2014 as compared to 2013 was due to a decrease in event-driven engineering services revenue, the amount of corn oil produced and the royalties paid by our licensees, and commodity price fluctuation. Revenue in future periods will remain subject to variance in connection with a number of factors, including the rate at which our licensees commence production, the amount of corn oil that our licensees produce, the market price for that corn oil, the extent to which we collect reasonable royalties, and the degree to which we provide event-driven systems integration services to our licensees involving the design, construction, integration and modification of licensed technologies.
15
Costs of sales for the year ended December 31, 2014 decreased to $4.6 million from about $6.8 million during 2013. We generated $8.2 million in gross profit for the year ended December 31, 2014 as compared to $8.7 million for the year ended December 31, 2013. We expect to achieve increased economies of scale with respect to our costs of sales and gross profit as all of our existing and new licensees commence and achieve full production and as we execute new licenses for our corn oil extraction and other technologies.
Operating expenses for the years ended December 31, 2014 and December 31, 2013 were about $7.4 million and $11.1 million, respectively. Operating expenses during 2014 included $3.2 million in professional fees, of which about $1.0 million was accrued and not paid during the year, as well as about $729,000 in research and development costs. By contrast, operating expenses during 2013 included a $2.5 million loss on write-down of an investment and $4.6 million in professional fees, of which about $2.4 million was accrued and not paid during the year, as well as about $500,000 in research and development costs. Our legal costs during 2014 were incurred primarily in connection with our ongoing litigation for patent infringement. We produced about $768,000 in operating income during 2014 as compared to about $2.3 million operating loss in 2013.
Other income for the year ended December 31, 2014 was about $1.2 million, while other expenses for the year ended December 31, 2013 were $2.0 million. We realized a debt extinguishment gain of about $2.7 million in 2014 that was offset by about $1.3 million in interest expense and $745,000 in other expenses. These amounts compared to a debt extinguishment gain of about $132,000 and about $1.7 million in interest expense during 2013. We also incurred about $400,000 in legal costs relating to the execution of amended agreements with YA Global during the first quarter of 2013, 90% of which were recorded as deferred financing costs and were expensed ratably on a monthly basis over the year ended December 31, 2013.
Net income for the year ended December 31, 2014 was about $2.0 million. Net loss for the year ended December 31, 2013 was about $4.4 million.
Net income for the year ended December 31, 2014 was about $2.0 million.
Revenues for the year ended December 31, 2014 were $12.8 million
We generated $8.2 million in gross profit for the year ended December 31, 2014
http://www.otcmarkets.com/edgar/GetFilingHtml...D=10615712
Year Ended December 31, 2014
Compared to
Year Ended December 31, 2013
Quote:
Revenues for the year ended December 31, 2014 were $12.8 million as compared to $15.5 million generated during the year ended December 31, 2013. The decrease in revenue during 2014 as compared to 2013 was due to a decrease in event-driven engineering services revenue, the amount of corn oil produced and the royalties paid by our licensees, and commodity price fluctuation. Revenue in future periods will remain subject to variance in connection with a number of factors, including the rate at which our licensees commence production, the amount of corn oil that our licensees produce, the market price for that corn oil, the extent to which we collect reasonable royalties, and the degree to which we provide event-driven systems integration services to our licensees involving the design, construction, integration and modification of licensed technologies.
15
Costs of sales for the year ended December 31, 2014 decreased to $4.6 million from about $6.8 million during 2013. We generated $8.2 million in gross profit for the year ended December 31, 2014 as compared to $8.7 million for the year ended December 31, 2013. We expect to achieve increased economies of scale with respect to our costs of sales and gross profit as all of our existing and new licensees commence and achieve full production and as we execute new licenses for our corn oil extraction and other technologies.
Operating expenses for the years ended December 31, 2014 and December 31, 2013 were about $7.4 million and $11.1 million, respectively. Operating expenses during 2014 included $3.2 million in professional fees, of which about $1.0 million was accrued and not paid during the year, as well as about $729,000 in research and development costs. By contrast, operating expenses during 2013 included a $2.5 million loss on write-down of an investment and $4.6 million in professional fees, of which about $2.4 million was accrued and not paid during the year, as well as about $500,000 in research and development costs. Our legal costs during 2014 were incurred primarily in connection with our ongoing litigation for patent infringement. We produced about $768,000 in operating income during 2014 as compared to about $2.3 million operating loss in 2013.
Other income for the year ended December 31, 2014 was about $1.2 million, while other expenses for the year ended December 31, 2013 were $2.0 million. We realized a debt extinguishment gain of about $2.7 million in 2014 that was offset by about $1.3 million in interest expense and $745,000 in other expenses. These amounts compared to a debt extinguishment gain of about $132,000 and about $1.7 million in interest expense during 2013. We also incurred about $400,000 in legal costs relating to the execution of amended agreements with YA Global during the first quarter of 2013, 90% of which were recorded as deferred financing costs and were expensed ratably on a monthly basis over the year ended December 31, 2013.
Net income for the year ended December 31, 2014 was about $2.0 million. Net loss for the year ended December 31, 2013 was about $4.4 million.
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