AMERICAN DG ENERGY INC - FORM 8-K - EX-99.1 - EXHIBIT - August 13, 2013

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Exhibit 99.1

FOR IMMEDIATE RELEASE
Investor Contact:
John N. Hatsopoulos
American DG Energy Inc.
781.622.1120
john.hatsopoulos@americandg.com
 
Media Contact:
Barry J. Sanders
American DG Energy Inc.
781.522.6010
barry.sanders@americandg.com
 
 
American DG Energy Reports Second Quarter 2013 Financial Performance

Second quarter energy revenue increases by 53% compared to a year ago

WALTHAM, Mass. - August 13, 2013 - American DG Energy Inc. (NYSE MKT: ADGE), a leading On-Site Utility, offering clean electricity, heat, hot water and cooling solutions to hospitality, healthcare, housing and athletic facilities, reported total revenues of $1,769,783 in the second quarter of 2013, compared to $1,192,957 for the same period in 2012, an increase of 48%. GAAP diluted loss per share (EPS) was $(0.02) in the second quarter of 2013, compared with $(0.05) for the same period in 2012.
 
Major Highlights:
 
Financial

•
Energy revenue increased by 53% to $1,732,497 in the second quarter of 2013, compared to $1,136,265 for the same period in 2012. Utility rates for thermal energy (such as natural gas) decreased approximately 2% and electricity rates decreased by 4% in the second quarter of 2013 compared to the same period in 2012, which lowered our energy revenue for the period.
•
EBITDA cash outflows for American DG Energy in North America were $137,567 in the second quarter of 2013. The EuroSite Power cash outflows were $446,432; therefore, our consolidated EBITDA cash outflows were $583,999 in the second quarter of 2013.
•
Energy gross profit margin without depreciation was 34% in the second quarter of 2013.
•
EuroSite Power issued 4% Senior Unsecured Convertible Notes Due 2015 and raised $4.0 million; $2.9 million from accredited investors and $1.1 million from conversion of an American DG Energy note.
•
We finished the second quarter of 2013 with approximately $10.8 million in cash.
•
The total revenue value of our On-Site Utility energy agreements since inception is approximately $285 million using various market assumptions and estimates made by the Company.

Operations
 
•
Total energy production increased by 55% to 24.6 million kWh in the second quarter of 2013 compared to the same period in 2012. This energy production was attributable to the following core markets:

Housing
25
%
Healthcare
23
%
Hospitality
19
%
Fitness
19
%
Education
9
%
Other
5
%
TOTAL
100
%

1


•
We currently operate 104 energy systems and our current backlog consists of 37 energy systems.

•We signed the following new contracts

◦300 kW Combined Heat and Power (CHP) system with two buildings in New Jersey.
◦100 kW CHP system with Roko Health Club in York, United Kingdom (UK).
◦100 kW CHP system with Bury St Edmunds Leisure Center in Suffolk, UK.
◦100 kW CHP system with Leisure Connection for the Dunstable Leisure Centre in Dunstable, UK.

•We commenced operations at the following:

◦
Two 450-ton chillers at Doral Arrowwood Hotel and Conference Center in Rye, New York, in addition to the 375 kW CHP systems already operating at the property since 2011.
◦75 kW CHP system at YMCA in Greenwich, Connecticut.
◦100 kW CHP system at Roko Health Club in GiIlingham, UK.
◦100 kW CHP system at DoubleTree by Hilton in Cambridge, UK.
◦100 kW CHP system at Roko Health Club in Nottingham, UK.

American DG Energy will hold its earnings conference call today, August 13, 2013 at 10:00 a.m. Eastern Time. To listen, call (800) 860-2442 within the U.S, (866) 605-3852 from Canada or (412) 858-4600 from other international locations. Participants should reference American DG Energy to access the call. Please begin dialing at least 10 minutes before the scheduled starting time. The earnings press release will be available on our web site at www.americandg.com in the “Investors” section under "News Releases.”
 
The earnings conference call will be recorded and available for playback one hour after the end of the call through Friday, September 13, 2013. To listen to the playback, call (877) 344-7529 within the U.S. or (412) 317-0088 outside the U.S. and use Conference Number 10032396.
 
The earnings conference call will be webcast live. To register for and listen to the webcast, go to www.americandg.com/webcast. Following the call, the webcast will be archived for 30 days.
 
 
About American DG Energy
American DG Energy supplies low-cost energy to its customers through distributed power generating systems. We are committed to providing institutional, commercial and small industrial facilities with clean, reliable power, cooling, heat and hot water at lower costs than charged by local utilities - without any capital or start-up costs to the energy user - through our On-Site Utility energy solutions. American DG Energy is headquartered in Waltham, Massachusetts. Learn more about how American DG Energy reduces energy costs at www.americandg.com or follow us on Facebook and Twitter.

# # #
 
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements under the Private Securities Litigation Reform Act of 1995 that involve a number of risks and uncertainties. Important factors could cause actual results to differ materially from those indicated by such forward-looking statements, as disclosed on the Company's website and in Securities and Exchange Commission filings. This press release does not constitute an offer to buy or sell securities by the Company, its subsidiaries or any associated party and is meant purely for informational purposes. The statements in this press release are made as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company does not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.
 


 

2


CONSOLIDATED STATEMENT OF OPERATIONS
For the Three Months Ended June 30, 2013 and June 30, 2012
(unaudited) 
 
Three Months Ended
 
June 30, 2013
 
June 30, 2012
 
(unaudited)
 
(unaudited)
Revenues
 

 
 

Energy revenues
$
1,732,497

 
$
1,136,265

Turnkey & other revenues
37,286

 
56,692

 
1,769,783

 
1,192,957

Cost of sales
 
 
 

Fuel, maintenance and installation
1,136,802

 
694,746

Depreciation expense
329,302

 
534,888

 
1,466,104

 
1,229,634

Gross profit
303,679

 
(36,677
)
Operating expenses
 
 
 

General and administrative
844,418

 
677,371

Selling
277,388

 
624,159

Engineering
267,588

 
300,265

 
1,389,394

 
1,601,795

Loss from operations
(1,085,715
)
 
(1,638,472
)
 
 
 
 
Other income (expense), net
 
 
 

Interest and other income
42,144

 
13,682

Interest expense
(260,537
)
 
(447,477
)
Change in fair value of warrant liability
208,187

 
(44,602
)
 
(10,206
)
 
(478,397
)
Loss before provision for state income taxes
(1,095,921
)
 
(2,116,869
)
Benefit (provision) for state income taxes
(7,055
)
 
7,140

Consolidated net loss
(1,102,976
)
 
(2,109,729
)
(Income) loss attributable to the noncontrolling interest
54,484

 
60,764

Net loss attributable to American DG Energy Inc.
$
(1,048,492
)
 
$
(2,048,965
)
 
 
 
 
Net loss per share - basic and diluted
$
(0.02
)
 
$
(0.04
)
Weighted average shares outstanding - basic and diluted
48,619,404

 
46,639,141

 
 
 
 
Non-GAAP financial disclosure
 
 
 
Loss from operations
$
(1,085,715
)
 
$
(1,638,472
)
Depreciation expense
355,044

 
548,673

Stock based compensation
146,672

 
189,130

Adjusted EBITDA
(583,999
)
 
(900,669
)
Grants from rebates and incentives (reduction in basis of property)
—

 
260,701

Total cash outflows
$
(583,999
)
 
$
(639,968
)




3


CONSOLIDATED STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 2013 and June 30, 2012
(unaudited) 
 
Six Months Ended
 
June 30, 2013
 
June 30, 2012
 
(unaudited)
 
(unaudited)
Revenues
 

 
 

Energy revenues
$
3,746,934

 
$
2,587,834

Turnkey & other revenues
82,161

 
107,525

 
3,829,095

 
2,695,359

Cost of sales
 

 
 

Fuel, maintenance and installation
2,520,585

 
1,697,558

Depreciation expense
656,990

 
829,584

 
3,177,575

 
2,527,142

Gross profit
651,520

 
168,217

Operating expenses
 

 
 

General and administrative
1,482,843

 
1,445,323

Selling
690,186

 
1,044,335

Engineering
556,156

 
580,077

 
2,729,185

 
3,069,735

Loss from operations
(2,077,665
)
 
(2,901,518
)
 
 
 
 
Other income (expense), net
 

 
 

Interest and other income
66,288

 
26,440

Interest expense
(559,346
)
 
(741,033
)
Change in fair value of warrant liability
319,006

 
(261,336
)
 
(174,052
)
 
(975,929
)
Loss before provision for state income taxes
(2,251,717
)
 
(3,877,447
)
Provision for state income taxes
(41,639
)
 
(11,962
)
Consolidated net loss
(2,293,356
)
 
(3,889,409
)
(Income) loss attributable to the noncontrolling interest
75,813

 
70,751

Net loss attributable to American DG Energy Inc.
$
(2,217,543
)
 
$
(3,818,658
)
 
 
 
 
Net loss per share - basic and diluted
$
(0.05
)
 
$
(0.08
)
Weighted average shares outstanding - basic and diluted
48,555,424

 
46,639,141

 
 
 
 
Non-GAAP financial disclosure
 
 
 
Loss from operations
$
(2,077,665
)
 
$
(2,901,518
)
Depreciation expense
694,697

 
857,224

Stock based compensation
283,360

 
379,857

Adjusted EBITDA
(1,099,608
)
 
(1,664,437
)
Grants from rebates and incentives (reduction in basis of property)
146,318

 
260,701

Total cash outflows
$
(953,290
)
 
$
(1,403,736
)



4


CONSOLIDATING STATEMENT OF OPERATIONS
For the Three Months Ended June 30, 2013
(unaudited) 
 
Three Months Ended
 
June 30, 2013
 
American DG Energy*
 
EuroSite Power
 
Eliminations
 
Total
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
Energy revenues
$
1,541,743

 
$
190,754

 
$
—

 
$
1,732,497

Turnkey & other revenues
37,286

 
—

 
—

 
37,286

 
1,579,029

 
190,754

 
—

 
1,769,783

Cost of sales
 
 
 
 
 
 
 
Fuel, maintenance and installation
960,401

 
176,401

 
—

 
1,136,802

Depreciation expense
312,003

 
17,299

 
—

 
329,302

 
1,272,404

 
193,700

 
—

 
1,466,104

Gross profit (loss)
306,625

 
(2,946
)
 
—

 
303,679

Operating expenses
 
 
 
 
 
 
 
General and administrative
473,135

 
371,283

 
—

 
844,418

Selling
148,818

 
128,570

 
—

 
277,388

Engineering
233,086

 
34,502

 
—

 
267,588

 
855,039

 
534,355

 
—

 
1,389,394

Loss from operations
(548,414
)
 
(537,301
)
 
—

 
(1,085,715
)
 
 
 
 
 
 
 
 
Other income (expense), net
 
 
 
 
 
 
 
Interest and other income
41,576

 
568

 
—

 
42,144

Interest expense
(240,045
)
 
(20,492
)
 
—

 
(260,537
)
Change in fair value of warrant liability
208,187

 
—

 
—

 
208,187

 
9,718

 
(19,924
)
 
—

 
(10,206
)
Loss before provision for state income taxes
(538,696
)
 
(557,225
)
 
—

 
(1,095,921
)
Benefit (provision) for state income taxes
(7,055
)
 
—

 
—

 
(7,055
)
Consolidated net loss
(545,751
)
 
(557,225
)
 
—

 
(1,102,976
)
(Income) loss attributable to the noncontrolling interest
(60,862
)
 
—

 
115,346

 
54,484

Net loss attributable to American DG Energy Inc.
$
(606,613
)
 
$
(557,225
)
 
$
115,346

 
$
(1,048,492
)
 
 
 
 
 
 
 
 
Net loss per share - basic and diluted
$
(0.01
)
 
 
 
 
 
$
(0.02
)
Weighted average shares outstanding - basic and diluted
48,619,404

 
 
 
 
 
48,619,404

 
 
 
 
 
 
 
 
Non-GAAP financial disclosure
 
 
 
 
 
 
 
Loss from operations
$
(548,414
)
 
$
(537,301
)
 
$
—

 
$
(1,085,715
)
Depreciation expense
337,745

 
17,299

 
—

 
355,044

Stock based compensation
73,102

 
73,570

 
—

 
146,672

Adjusted EBITDA
(137,567
)
 
(446,432
)
 
—

 
(583,999
)
Grants from rebates and incentives (reduction in basis of property)
—

 
—

 
—

 
—

Total EBITDA cash outflows
$
(137,567
)
 
$
(446,432
)
 
$
—

 
$
(583,999
)

* American DG Energy includes related LLC.

5


CONSOLIDATING STATEMENT OF OPERATIONS
For the Three Months Ended June 30, 2012
(unaudited) 
 
Three Months Ended
 
June 30, 2012
 
American DG Energy*
 
EuroSite Power
 
Eliminations
 
Total
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
Energy revenues
$
1,136,265

 
$
—

 
$
—

 
$
1,136,265

Turnkey & other revenues
29,098

 
27,594

 
—

 
56,692

 
1,165,363

 
27,594

 
—

 
1,192,957

Cost of sales
 
 
 
 
 
 
 

Fuel, maintenance and installation
674,642

 
20,104

 
—

 
694,746

Depreciation expense
534,888

 
—

 
—

 
534,888

 
1,209,530

 
20,104

 
—

 
1,229,634

Gross profit (loss)
(44,167
)
 
7,490

 
—

 
(36,677
)
Operating expenses
 
 
 
 
 
 
 

General and administrative
417,809

 
259,562

 
—

 
677,371

Selling
466,938

 
157,221

 
—

 
624,159

Engineering
266,273

 
33,992

 
—

 
300,265

 
1,151,020

 
450,775

 
—

 
1,601,795

Loss from operations
(1,195,187
)
 
(443,285
)
 
—

 
(1,638,472
)
 
 
 
 
 
 
 
 
Other income (expense), net
 
 
 
 
 
 
 

Interest and other income
9,509

 
4,173

 
—

 
13,682

Interest expense
(447,477
)
 
—

 
—

 
(447,477
)
Change in fair value of warrant liability
(44,602
)
 
—

 
—

 
(44,602
)
 
(482,570
)
 
4,173

 
—

 
(478,397
)
Loss before provision for state income taxes
(1,677,757
)
 
(439,112
)
 
—

 
(2,116,869
)
Benefit (provision) for state income taxes
7,140

 
—

 
—

 
7,140

Consolidated net loss
(1,670,617
)
 
(439,112
)
 
—

 
(2,109,729
)
(Income) loss attributable to the noncontrolling interest
(25,589
)
 
—

 
86,353

 
60,764

Net loss attributable to American DG Energy Inc.
$
(1,696,206
)
 
$
(439,112
)
 
$
86,353

 
$
(2,048,965
)
 
 
 
 
 
 
 
 
Net loss per share - basic and diluted
$
(0.04
)
 
 
 
 
 
$
(0.04
)
Weighted average shares outstanding - basic and diluted
46,639,141

 
 
 
 
 
46,639,141

 
 
 
 
 
 
 
 
Non-GAAP financial disclosure
 
 
 
 
 
 
 
Loss from operations
$
(1,195,187
)
 
$
(443,285
)
 
$
—

 
$
(1,638,472
)
Depreciation expense
547,963

 
710

 
—

 
548,673

Stock based compensation
67,108

 
122,022

 
—

 
189,130

Adjusted EBITDA
(580,116
)
 
(320,553
)
 
—

 
(900,669
)
Grants from rebates and incentives (reduction in basis of property)
260,701

 
—

 
—

 
260,701

Total EBITDA cash outflows
$
(319,415
)
 
$
(320,553
)
 
$
—

 
$
(639,968
)

* American DG Energy includes related LLC.

6


CONSOLIDATING STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 2013
(unaudited) 
 
Six Months Ended
 
June 30, 2013
 
American DG Energy*
 
EuroSite Power
 
Eliminations
 
Total
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
Energy revenues
$
3,439,072

 
$
307,862

 
$
—

 
$
3,746,934

Turnkey & other revenues
82,161

 
—

 
—

 
82,161

 
3,521,233

 
307,862

 
—

 
3,829,095

Cost of sales
 
 
 
 
 
 
 

Fuel, maintenance and installation
2,249,714

 
270,871

 
—

 
2,520,585

Depreciation expense
624,527

 
32,463

 
—

 
656,990

 
2,874,241

 
303,334

 
—

 
3,177,575

Gross profit (loss)
646,992

 
4,528

 
—

 
651,520

Operating expenses
 
 
 
 
 
 
 

General and administrative
916,294

 
566,549

 
—

 
1,482,843

Selling
380,398

 
309,788

 
—

 
690,186

Engineering
489,945

 
66,211

 
—

 
556,156

 
1,786,637

 
942,548

 
—

 
2,729,185

Loss from operations
(1,139,645
)
 
(938,020
)
 
—

 
(2,077,665
)
 
 
 
 
 
 
 
 
Other income (expense), net
 
 
 
 
 
 
 

Interest and other income
64,490

 
1,798

 
—

 
66,288

Interest expense
(533,601
)
 
(25,745
)
 
—

 
(559,346
)
Change in fair value of warrant liability
319,006

 
—

 
—

 
319,006

 
(150,105
)
 
(23,947
)
 
—

 
(174,052
)
Loss before provision for state income taxes
(1,289,750
)
 
(961,967
)
 
—

 
(2,251,717
)
Benefit (provision) for state income taxes
(41,639
)
 
—

 
—

 
(41,639
)
Consolidated net loss
(1,331,389
)
 
(961,967
)
 
—

 
(2,293,356
)
(Income) loss attributable to the noncontrolling interest
(123,315
)
 
—

 
199,128

 
75,813

Net loss attributable to American DG Energy Inc.
$
(1,454,704
)
 
$
(961,967
)
 
$
199,128

 
$
(2,217,543
)
 
 
 
 
 
 
 
 
Net loss per share - basic and diluted
$
(0.03
)
 
 
 
 
 
$
(0.05
)
Weighted average shares outstanding - basic and diluted
48,555,424

 
 
 
 
 
48,555,424

 
 
 
 
 
 
 
 
Non-GAAP financial disclosure
 
 
 
 
 
 
 
Loss from operations
$
(1,139,645
)
 
$
(938,020
)
 
$
—

 
$
(2,077,665
)
Depreciation expense
662,234

 
32,463

 
—

 
694,697

Stock based compensation
181,995

 
101,365

 
—

 
283,360

Adjusted EBITDA
(295,416
)
 
(804,192
)
 
—

 
(1,099,608
)
Grants from rebates and incentives (reduction in basis of property)
146,318

 
—

 
—

 
146,318

Total EBITDA cash outflows
$
(149,098
)
 
$
(804,192
)
 
$
—

 
$
(953,290
)

* American DG Energy includes related LLC.

7


CONSOLIDATING STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 2012
(unaudited) 
 
Six Months Ended
 
June 30, 2012
 
American DG Energy*
 
EuroSite Power
 
Eliminations
 
Total
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
Energy revenues
$
2,587,834

 
$
—

 
$
—

 
$
2,587,834

Turnkey & other revenues
79,931

 
27,594

 
—

 
107,525

 
2,667,765

 
27,594

 
—

 
2,695,359

Cost of sales
 
 
 
 
 
 
 

Fuel, maintenance and installation
1,677,454

 
20,104

 
—

 
1,697,558

Depreciation expense
829,584

 
—

 
—

 
829,584

 
2,507,038

 
20,104

 
—

 
2,527,142

Gross profit (loss)
160,727

 
7,490

 
—

 
168,217

Operating expenses
 
 
 
 
 
 
 

General and administrative
869,516

 
575,807

 
—

 
1,445,323

Selling
749,340

 
294,995

 
—

 
1,044,335

Engineering
546,085

 
33,992

 
—

 
580,077

 
2,164,941

 
904,794

 
—

 
3,069,735

Loss from operations
(2,004,214
)
 
(897,304
)
 
—

 
(2,901,518
)
 
 
 
 
 
 
 
 
Other income (expense), net
 
 
 
 
 
 
 

Interest and other income
17,299

 
9,141

 
—

 
26,440

Interest expense
(741,033
)
 
—

 
—

 
(741,033
)
Change in fair value of warrant liability
(261,336
)
 
—

 
—

 
(261,336
)
 
(985,070
)
 
9,141

 
—

 
(975,929
)
Loss before provision for state income taxes
(2,989,284
)
 
(888,163
)
 
—

 
(3,877,447
)
Benefit (provision) for state income taxes
(11,962
)
 
—

 
—

 
(11,962
)
Consolidated net loss
(3,001,246
)
 
(888,163
)
 
—

 
(3,889,409
)
(Income) loss attributable to the noncontrolling interest
(82,206
)
 
—

 
152,957

 
70,751

Net loss attributable to American DG Energy Inc.
$
(3,083,452
)
 
$
(888,163
)
 
$
152,957

 
$
(3,818,658
)
 
 
 
 
 
 
 
 
Net loss per share - basic and diluted
$
(0.07
)
 
 
 
 
 
$
(0.08
)
Weighted average shares outstanding - basic and diluted
46,639,141

 
 
 
 
 
46,639,141

 
 
 
 
 
 
 
 
Non-GAAP financial disclosure
 
 
 
 
 
 
 
Loss from operations
$
(2,004,214
)
 
$
(897,304
)
 
$
—

 
$
(2,901,518
)
Depreciation expense
856,514

 
710

 
—

 
857,224

Stock based compensation
127,865

 
251,992

 
—

 
379,857

Adjusted EBITDA
(1,019,835
)
 
(644,602
)
 
—

 
(1,664,437
)
Grants from rebates and incentives (reduction in basis of property)
260,701

 
—

 
—

 
260,701

Total EBITDA cash outflows
$
(759,134
)
 
$
(644,602
)
 
$
—

 
$
(1,403,736
)

* American DG Energy includes related LLC.

8


CONSOLIDATED BALANCE SHEETS
As of June 30, 2013 and December 31, 2012
(unaudited) 
 
June 30,
2013
 
December 31,
2012
ASSETS
 

 
 

Current assets:
 

 
 

Cash and cash equivalents
$
10,815,833

 
$
13,362,919

Accounts receivable, net
871,243

 
761,678

Unbilled revenue
19,437

 
19,492

Due from related party
678,340

 
18,372

Inventory
2,974,270

 
2,920,444

Prepaid and other current assets
330,296

 
308,164

Total current assets
15,689,419

 
17,391,069

Property, plant and equipment, net
20,144,242

 
17,253,648

Accounts receivable, long-term
36,000

 
46,800

Other assets, long-term
42,104

 
47,216

TOTAL ASSETS
$
35,911,765

 
$
34,738,733

 
 
 
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
 

 
 

Current liabilities:
 

 
 

Accounts payable
$
505,214

 
$
765,618

Accrued expenses and other current liabilities
566,879

 
532,420

Due to related party
55,955

 
41,812

Capital lease obligations
1,683

 
3,365

Total current liabilities
1,129,731

 
1,343,215

Long-term liabilities:
 

 
 

Convertible debentures
22,300,000

 
19,400,000

Warrant liability
70,448

 
389,454

Capital lease obligations, long-term
—

 
—

Other long-term liabilities
22,640

 
29,444

Total liabilities
23,522,819

 
21,162,113

 
 
 
 
Stockholders’ equity:
 

 
 

American DG Energy Inc. stockholders’ equity:
 

 
 

Common stock, $0.001 par value; 100,000,000 shares authorized; 48,807,195 and 48,490,733 issued and outstanding at June 30, 2013 and December 31, 2012, respectively
48,807

 
48,491

Additional paid-in capital
37,787,431

 
37,001,439

Accumulated deficit
(26,674,388
)
 
(24,456,845
)
Total American DG Energy Inc. stockholders’ equity
11,161,850

 
12,593,085

Noncontrolling interest
1,227,096

 
983,535

Total stockholders’ equity
12,388,946

 
13,576,620

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
$
35,911,765

 
$
34,738,733



9


CONSOLIDATED STATEMENT OF CASH FLOWS
For the Six Months Ended June 30, 2013 and June 30, 2012
(unaudited) 
 
Six Months Ended
 
June 30, 2013
 
June 30, 2012
 
(unaudited)
 
(unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
 

 
 

Net loss
$
(2,217,543
)
 
$
(3,818,658
)
Income (loss) attributable to noncontrolling interest
(75,813
)
 
(70,751
)
Adjustments to reconcile net loss to net cash used in operating activities:
 
 
 
Depreciation and amortization
694,697

 
857,224

Provision for losses on accounts receivable
64,134

 
74,291

Amortization of deferred financing costs
5,112

 
1,176

Increase (decrease) in fair value of warrant liability
(319,006
)
 
261,336

Noncash interest expense
528,489

 
712,921

Stock-based compensation
283,360

 
379,857

Changes in operating assets and liabilities:
 
 
 

(Increase) decrease in:
 

 
 

Accounts receivable and unbilled revenue
(162,844
)
 
(81,911
)
Due from related party
(659,968
)
 
(47,360
)
Inventory
(53,826
)
 
(491,118
)
Prepaid and other current assets
3,312

 
(59,013
)
Increase (decrease) in:
 
 
 
Accounts payable
(260,404
)
 
(34,929
)
Accrued expenses and other current liabilities
34,459

 
81,661

Due to related party
14,143

 
267,486

Other long-term liabilities
(6,804
)
 
(6,804
)
Net cash used in operating activities
(2,128,502
)
 
(1,974,592
)
 
 
 
 
CASH FLOWS FROM INVESTING ACTIVITIES:
 

 
 

Purchases of property and equipment
(3,123,791
)
 
(933,687
)
Net cash used in investing activities
(3,123,791
)
 
(933,687
)
 
 
 
 
CASH FLOWS FROM FINANCING ACTIVITIES:
 

 
 

Proceeds from issuance of subsidiary convertible debentures, net of costs
2,874,556

 
—

Proceeds from issuance of warrants
—

 
7,500

Proceeds from sale of common stock, net of costs
—

 
1,560,000

Proceeds from sale of subsidiary common stock, net of costs
(4,558
)
 
—

Proceeds from exercise of stock options
—

 
114,882

Purchases of common stock, net of costs
—

 
(750,000
)
Principal payments on capital lease obligations
(1,682
)
 
(1,682
)
Distributions to noncontrolling interest
(163,109
)
 
(144,092
)
Net cash provided by financing activities
2,705,207

 
786,608

 
 
 
 
Net (decrease) increase in cash and cash equivalents
(2,547,086
)
 
(2,121,671
)
Cash and cash equivalents, beginning of the period
13,362,919

 
17,801,025

Cash and cash equivalents, end of the period
$
10,815,833

 
$
15,679,354



10

AMERICAN DG ENERGY INC Reports