In Full:
Taronis Fuels Releases Form 10
Download as PDFSeptember 20, 2019 9:00am EDT
Net Loss Reduced 79%, Clear Path to Profitability
PHOENIX, AZ / ACCESSWIRE / September 20, 2019 / Taronis Technologies, Inc., ("Taronis" or "the Company"
(NASDAQ:TRNX), a leading clean technology company in the renewable resources and environmental conservation industry, announced today that a Form 10 has been submitted with the Securities and Exchange Commission for Taronis Fuels, Inc. This document is a prerequisite for the announced spin-off of the wholly owned subsidiary from Taronis Technologies, which is expected to occur in early November.
As part of the Form 10, the financial statements of Taronis Fuels were prepared and presented as a stand-alone business. Revenues for the first six months of 2019 were $10.8 million, which represents a 163% increase from $4.1 million in the first six months of 2018. Expenses decreased $9.5 million, or 58% from the previously reported $16.5 million in the Company's most recent 10-Q to $7.0 million as reported in the Form 10 for Taronis Fuels.
The significant decrease in expenses from the most recent 10-Q to this Form 10 was due to the exclusion of operating expenses related to Taronis Technologies that were not directly related to Taronis Fuels. The exclusion of these expenses resulted in a sizable improvement in net profitability. The net loss improved 79% from $11.9 million as reported in the Taronis Technologies 10-Q, to a net loss of $2.5 million on the Form 10. EBITDA for the first six months of 2019 was a negative $2.1 million, with an average burn rate of approximately $0.35 million per month.
"Taronis Fuels is well positioned for continued growth and profitability in the near term," commented Scott Mahoney, CEO of Taronis Fuels. "Our revenues are consistently growing, and we have several expected catalysts for accelerated growth prior to year end. We are also pleased to present the full impact of excluded the cost structure of Taronis Technologies from Taronis Fuels. As a result, we eliminated 58% of our operating expenses, realizing a 79% improvement in our net income."
"Going forward, we have already delivered on several milestones that should further improve profitability in 2019. First, our Clearwater fill plant should improve net profitability by up to $0.1 million per month. Our new Flint, Texas MagneGas production facility should impact our net profitability by a similar amount. We have also added several sizable new clients that should add almost $50,000 to our net profits per month. When all of these achievements are combined, we are very close to profitability today. We look forward to providing further updates on the financial performance of Taronis Fuels throughout the remainder of the year," concluded Mr. Mahoney.
Taronis Fuels Releases Form 10
Download as PDFSeptember 20, 2019 9:00am EDT
Net Loss Reduced 79%, Clear Path to Profitability
PHOENIX, AZ / ACCESSWIRE / September 20, 2019 / Taronis Technologies, Inc., ("Taronis" or "the Company"
(NASDAQ:TRNX), a leading clean technology company in the renewable resources and environmental conservation industry, announced today that a Form 10 has been submitted with the Securities and Exchange Commission for Taronis Fuels, Inc. This document is a prerequisite for the announced spin-off of the wholly owned subsidiary from Taronis Technologies, which is expected to occur in early November. As part of the Form 10, the financial statements of Taronis Fuels were prepared and presented as a stand-alone business. Revenues for the first six months of 2019 were $10.8 million, which represents a 163% increase from $4.1 million in the first six months of 2018. Expenses decreased $9.5 million, or 58% from the previously reported $16.5 million in the Company's most recent 10-Q to $7.0 million as reported in the Form 10 for Taronis Fuels.
The significant decrease in expenses from the most recent 10-Q to this Form 10 was due to the exclusion of operating expenses related to Taronis Technologies that were not directly related to Taronis Fuels. The exclusion of these expenses resulted in a sizable improvement in net profitability. The net loss improved 79% from $11.9 million as reported in the Taronis Technologies 10-Q, to a net loss of $2.5 million on the Form 10. EBITDA for the first six months of 2019 was a negative $2.1 million, with an average burn rate of approximately $0.35 million per month.
"Taronis Fuels is well positioned for continued growth and profitability in the near term," commented Scott Mahoney, CEO of Taronis Fuels. "Our revenues are consistently growing, and we have several expected catalysts for accelerated growth prior to year end. We are also pleased to present the full impact of excluded the cost structure of Taronis Technologies from Taronis Fuels. As a result, we eliminated 58% of our operating expenses, realizing a 79% improvement in our net income."
"Going forward, we have already delivered on several milestones that should further improve profitability in 2019. First, our Clearwater fill plant should improve net profitability by up to $0.1 million per month. Our new Flint, Texas MagneGas production facility should impact our net profitability by a similar amount. We have also added several sizable new clients that should add almost $50,000 to our net profits per month. When all of these achievements are combined, we are very close to profitability today. We look forward to providing further updates on the financial performance of Taronis Fuels throughout the remainder of the year," concluded Mr. Mahoney.
1
