TLGN Totally Green Reports Third Quarter 2013 Results
Totally Green Reports Third Quarter 2013 Results
TORONTO, ON--(Marketwired - Nov 15, 2013) - Totally Green, Inc. (PINKSHEETS: TLGN) ("TG" or the "Company"), an innovator in organic food waste processing and diversion, reported results for the quarter ended September 30th, 2013.
Total revenue was $168,092 for the quarter ended September 30, 2013, compared to $45,914 for the quarter ended September 30, 2012. ORCA service fees increased from $78,902 in the second quarter of 2013 to $114,901 for the third quarter 2013.
Q3 2013 Operational Highlights
Q3 2013 continued to see substantial growth activity, as we installed 10 new ORCA machines on the Service as a Solution model.
The majority of the activity and revenues to date have been generated from the Toronto area, however we continue to deploy and shift resources to better support our launch into the U.S. market and are reviewing other possible U.S. locations for expansion. Initial results continue to be positive, and we are confident that this business model will be replicable in many other markets.
Management Commentary
"The results from the Quarter continue to demonstrate the effectiveness of the operating model, as we have seen, for the second straight quarter, increases of 45% over the prior Quarter in ORCA service fees," said Shawn Dym, CEO of Totally Green. "The U.S. entry will continue to contribute more significantly to new ORCA machine placements, and ultimately our revenue base, as we continue to build out our resources in the U.S. market. We continue to identify other viable U.S. markets and look to launch in additional large U.S. markets in the coming months."
About Totally Green
Totally Green, Inc. develops and markets the company's ORCA Green™ Machine. The ORCA (Organic Refuse Conversion Alternative) machine allows for rapid composting of most organic material in institutional and commercial end-user applications, after which the liquid compost is disposed of through the ordinary sewer system. The machine creates meaningful cost savings for customers while diverting food waste from landfills and reducing methane gas production. For more information, please visit www.totallygreen.com.
Important Cautions Regarding Forward-Looking Statements
This press release contains "forward-looking statements." Forward-looking statements are statements concerning plans, objectives, goals, strategies, expectations, intentions, projections, developments, future events, or performance, underlying (expressed or implied) assumptions and other statements that are other than historical facts. These forward-looking statements are only predictions. No assurances can be given that such predictions will prove correct. Actual events or results may differ materially. Forward-looking statements should be read in light of the cautionary statements and risks that include, but are not limited to, the risks associated with a small company, our comparatively limited financial resources, the uncertainty of market trends, the competition faced from other current and future technologies and the uncertainties of competitive pressures we face. These or other risks could cause actual results to differ materially from the future results indicated or implied in such forward-looking statements. We undertake no obligation to update or revise such statements.
Totally Green, Inc.
Consolidated statement of operations
(In US dollars)
Three months ended September 30, Nine months ended September 30,
2013 2012 2013 2012
(unaudited) (unaudited) (unaudited) (unaudited)
$ $ $ $
Sales 53,191 9,431 337,763 289,433
Service fees 114,901 5,200 248,676 7,200
Other - 31,283 - 197,026
Gross sales 168,092 45,914 586,439 493,659
Cost of goods sold 59,213 169,100 258,042 401,889
Gross profit 108,879 (123,186 ) 328,397 91,770
Operating expenses
Selling and marketing 85,063 161,044 232,258 220,610
General and administrative 463,795 970,161 1,280,140 1,490,672
Amortization and depreciation 77,045 167,362 119,758 473,725
Foreign exchange loss 6,732 6,417 224 6,417
Interest expense 13,900 21,714 26,109 70,411
646,535 1,326,698 1,658,489 2,261,835
Other expenses
Write-off of prepaid marketing fees - 1,121,910 - 1,121,910
Impairment of intangible assets - 554,757 - 554,757
- 1,676,667 - 1,676,667
Net loss (537,656 ) (3,126,551 ) (1,330,092 ) (3,846,732 )
Totally Green, Inc.
Consolidated balance sheet
(In US dollars)
September 30, December 31,
2013 2012
(unaudited) (audited)
$ $
Assets
Current assets
Cash and cash equivalents 3,444,261 733,411
Trade receivables, net 127,733 60,723
Inventory 26,853 16,894
Temporary investments - restricted 54,118 25,000
Prepaid expenses and other current assets 45,904 16,166
Other receivables 146,524 4,754
3,845,393 856,948
Deferred commissions 86,597 -
Property and equipment 1,559,960 426,204
5,491,950 1,283,152
Liabilities
Current liabilities
Trade payables and other accrued liabilities 414,054 167,740
Current portion of loans payable 139,380 -
Deferred revenues 6,000 -
Other liabilities 42,769 40,817
602,203 208,557
Other liabilities 8,044 -
Loans payable 100,569 -
710,816 208,557
Stockholders' equity
Common stock
750,000,000 shares authorized
20,888,523 and 13,825,727 shares issued and outstanding as at September 30, 2013 and December 31, 2012, respectively
20,888
13,825
Preferred stock
Series C
100,000 and 50,000 shares authorized, issued and outstanding as at September 30, 2013 and December 31, 2012, respectively
100
50
Series E
12,000 shares authorized, issued and outstanding as at September 30, 2013 and December 31, 2012
12
12
Series F
7,000 shares authorized, issued and outstanding as at September 30, 2013 and December 31, 2012
7
7
Additional paid-in capital 16,772,239 11,742,721
16,793,246 11,756,615
Accumulated deficit (12,012,112 ) (10,682,020 )
4,781,134 1,074,595
5,491,950 1,283,152
Shawn Dym
Chief Executive Officer
Totally Green, Inc.
Tel 416-221-9066
Totally Green Reports Third Quarter 2013 Results
TORONTO, ON--(Marketwired - Nov 15, 2013) - Totally Green, Inc. (PINKSHEETS: TLGN) ("TG" or the "Company"), an innovator in organic food waste processing and diversion, reported results for the quarter ended September 30th, 2013.
Total revenue was $168,092 for the quarter ended September 30, 2013, compared to $45,914 for the quarter ended September 30, 2012. ORCA service fees increased from $78,902 in the second quarter of 2013 to $114,901 for the third quarter 2013.
Q3 2013 Operational Highlights
Q3 2013 continued to see substantial growth activity, as we installed 10 new ORCA machines on the Service as a Solution model.
The majority of the activity and revenues to date have been generated from the Toronto area, however we continue to deploy and shift resources to better support our launch into the U.S. market and are reviewing other possible U.S. locations for expansion. Initial results continue to be positive, and we are confident that this business model will be replicable in many other markets.
Management Commentary
"The results from the Quarter continue to demonstrate the effectiveness of the operating model, as we have seen, for the second straight quarter, increases of 45% over the prior Quarter in ORCA service fees," said Shawn Dym, CEO of Totally Green. "The U.S. entry will continue to contribute more significantly to new ORCA machine placements, and ultimately our revenue base, as we continue to build out our resources in the U.S. market. We continue to identify other viable U.S. markets and look to launch in additional large U.S. markets in the coming months."
About Totally Green
Totally Green, Inc. develops and markets the company's ORCA Green™ Machine. The ORCA (Organic Refuse Conversion Alternative) machine allows for rapid composting of most organic material in institutional and commercial end-user applications, after which the liquid compost is disposed of through the ordinary sewer system. The machine creates meaningful cost savings for customers while diverting food waste from landfills and reducing methane gas production. For more information, please visit www.totallygreen.com.
Important Cautions Regarding Forward-Looking Statements
This press release contains "forward-looking statements." Forward-looking statements are statements concerning plans, objectives, goals, strategies, expectations, intentions, projections, developments, future events, or performance, underlying (expressed or implied) assumptions and other statements that are other than historical facts. These forward-looking statements are only predictions. No assurances can be given that such predictions will prove correct. Actual events or results may differ materially. Forward-looking statements should be read in light of the cautionary statements and risks that include, but are not limited to, the risks associated with a small company, our comparatively limited financial resources, the uncertainty of market trends, the competition faced from other current and future technologies and the uncertainties of competitive pressures we face. These or other risks could cause actual results to differ materially from the future results indicated or implied in such forward-looking statements. We undertake no obligation to update or revise such statements.
Totally Green, Inc.
Consolidated statement of operations
(In US dollars)
Three months ended September 30, Nine months ended September 30,
2013 2012 2013 2012
(unaudited) (unaudited) (unaudited) (unaudited)
$ $ $ $
Sales 53,191 9,431 337,763 289,433
Service fees 114,901 5,200 248,676 7,200
Other - 31,283 - 197,026
Gross sales 168,092 45,914 586,439 493,659
Cost of goods sold 59,213 169,100 258,042 401,889
Gross profit 108,879 (123,186 ) 328,397 91,770
Operating expenses
Selling and marketing 85,063 161,044 232,258 220,610
General and administrative 463,795 970,161 1,280,140 1,490,672
Amortization and depreciation 77,045 167,362 119,758 473,725
Foreign exchange loss 6,732 6,417 224 6,417
Interest expense 13,900 21,714 26,109 70,411
646,535 1,326,698 1,658,489 2,261,835
Other expenses
Write-off of prepaid marketing fees - 1,121,910 - 1,121,910
Impairment of intangible assets - 554,757 - 554,757
- 1,676,667 - 1,676,667
Net loss (537,656 ) (3,126,551 ) (1,330,092 ) (3,846,732 )
Totally Green, Inc.
Consolidated balance sheet
(In US dollars)
September 30, December 31,
2013 2012
(unaudited) (audited)
$ $
Assets
Current assets
Cash and cash equivalents 3,444,261 733,411
Trade receivables, net 127,733 60,723
Inventory 26,853 16,894
Temporary investments - restricted 54,118 25,000
Prepaid expenses and other current assets 45,904 16,166
Other receivables 146,524 4,754
3,845,393 856,948
Deferred commissions 86,597 -
Property and equipment 1,559,960 426,204
5,491,950 1,283,152
Liabilities
Current liabilities
Trade payables and other accrued liabilities 414,054 167,740
Current portion of loans payable 139,380 -
Deferred revenues 6,000 -
Other liabilities 42,769 40,817
602,203 208,557
Other liabilities 8,044 -
Loans payable 100,569 -
710,816 208,557
Stockholders' equity
Common stock
750,000,000 shares authorized
20,888,523 and 13,825,727 shares issued and outstanding as at September 30, 2013 and December 31, 2012, respectively
20,888
13,825
Preferred stock
Series C
100,000 and 50,000 shares authorized, issued and outstanding as at September 30, 2013 and December 31, 2012, respectively
100
50
Series E
12,000 shares authorized, issued and outstanding as at September 30, 2013 and December 31, 2012
12
12
Series F
7,000 shares authorized, issued and outstanding as at September 30, 2013 and December 31, 2012
7
7
Additional paid-in capital 16,772,239 11,742,721
16,793,246 11,756,615
Accumulated deficit (12,012,112 ) (10,682,020 )
4,781,134 1,074,595
5,491,950 1,283,152
Shawn Dym
Chief Executive Officer
Totally Green, Inc.
Tel 416-221-9066
