Q3 2023 Tecogen Inc Earnings Call

• Jack Whiting; General Counsel and Secretary; Tecogen, Inc.
• Abinand Rangesh; CEO; Tecogen, Inc.
• Roger Deschenes; CAO; Tecogen, Inc.
• Sameer Joshi; Analyst; H.C. Wainwright & Co., LLC
• Alex Blanton; Analyst; Clear Harbor Asset Management, LLC

Operator: Greetings, and welcome to Tecogen’s third-quarter 2023 conference call. All participants are in listen-only mode at this time. A question-and-answer session will follow the formal presentation. (Operator Instructions) Please note this conference is being recorded. At this time, I’ll turn the conference over to Jack Whiting, General Counsel and Secretary. Mr. Whiting, you may now begin.

Jack Whiting: Morning, this is Jack Whiting, General Counsel and Secretary of Tecogen. Please note this call is being recorded and will be archived on the investors section of our website at tecogen.com. The press release regarding our third-quarter 2023 earnings and the presentation provided this morning are available in the investors section of our website. I’d like to direct your attention to our safe harbor statement included in the earnings press release and presentation.

Various remarks that we may make about the company’s future expectations, plans, and prospects constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors, including those discussed in the company’s most recent annual report on Form 10-K and quarterly reports on Form 10-Q under the caption risk factors, which are on file with the Securities and Exchange Commission and available in the investors section of our website under the heading SEC Filings.

While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so. Therefore, you should not rely on any forward-looking statements as representing our views as of any date subsequent to today. During this call, we will refer to certain financial measures not prepared in accordance with Generally Accepted Accounting Principles or GAAP. Reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures is provided in the press release regarding our third-quarter 2023 earnings in the investors section of our website.

I’ll now turn the call over to Abinand Rangesh, Tecogen’s CEO, who will provide a review of the third-quarter activity and results; and Roger Deschenes, Tecogen’s CAO, who will provide additional information regarding Q3 financial results. Abinand?

Abinand Rangesh: Thank you, Jack. Welcome to Tecogen’s third-quarter 2023 earnings call. In the last couple of calls, I laid out our objectives and plan. I’ll start by giving an update on where we are with regards to meeting these objectives. Roger will then take us through the financials, and then I will wrap up with our next steps.

Revenue is up every quarter this year. The adjusted EBITDA loss has also narrowed. In fact, if service margins were where they were last year, we would have shown a net profit. Inventory is also down compared to Q2, although we still have work to do to reduce this further.