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MagneGas Reports Financial Results For The Third Quarter And First Nine Months Of 2012

MagneGas Reports Financial Results For The Third Quarter And First Nine Months
                                   Of 2012

PR Newswire

TAMPA, Fla., Nov. 13, 2012

TAMPA, Fla., Nov. 13, 2012 /PRNewswire/ --MagneGas Corporation ("MagneGas" or
the "Company") (NASDAQ: MNGA), the developer of a technology that converts
liquid waste into a hydrogen-based metal working fuel, today announced its
financial results for the third quarter and nine months ended September 30,
2012.

Third Quarter 2012 Financial Highlights:

  oTotal revenues of $201,096 for the third quarter of 2012 increased 147% as
    compared to $81,253 for the prior year's third quarter;
  oMetal cutting revenues increased 207% to $177,763 as compared to $57,920
    in the third quarter of 2011; and
  oQuarterly cash balance of $4.3 million as compared to $147,000 for the
    same period ending September 30, 2011

"We made good progress during the third quarter of 2012 as we continued to
ramp up production, win new customers and demonstrate the superior metal
cutting properties of our MagneGas fuel," stated Ermanno Santilli, Chief
Executive Officer of MagneGas. "We are committed to staying focused on our
business plan as we expand our footprint through out the metal cutting
industry."

Santilli concluded, "We also believe that demand for MagneGas refineries,
which provide an excellent value proposition for customers looking to produce
MagneGas fuel in-house and on-site, will continue to increase over the next
several quarters. In August, we shipped a 160 kW refinery to RJ Torching, one
of the largest scrap yards in Michigan. We also purchased a 3.5 acre facility
adjacent to our headquarters that will allow us to manufacture up to 30
refineries at one time. We are now well positioned to meet the steadily
increasing demand for our products."

Third Quarter 2012 Financial Results

For the third quarter of 2012, total revenues were $201,096, an increase of
$119,843 or 147%, from revenues of $81,253 for the third quarter of 2011.

Metal cutting revenues were $177,763 for the third quarter of 2012, a 207%
increase over metal cutting revenues of $57,920 for the prior year's third
quarter. Metal cutting revenues as a percentage of total revenues for the
third quarter of 2011 were 88% as compared to 71% in the prior year's third
quarter. Licensing fees were $23,333 for the third quarter of 2012, the same
as for the prior year's third quarter.

Operating expenses were $2,166,514 for the third quarter of 2012, increasing
254% from operating expenses of $612,773 for the prior year's third quarter,
primarily due to the opening of new facilities, the addition of executives and
staff to manage sales and production efforts, and investments in research &
development. The Company had an operating loss in the third quarter of 2012 of
$2,099,034, compared to an operating loss of $587,011 for the prior year's
third quarter.

The Company recorded a net loss of $2,098,385, or $0.11 per basic and diluted
share, for the third quarter of 2012, as compared to a net loss of $366,041,
or $0.02 per basic and diluted share, for the third quarter of 2011.

The Company has focused on selling fuel to scrap yards and demolition
companies for much of 2012. But a decrease in scrap steel prices during the
3^rd quarter, with a corresponding decrease in cutting and fuel use in this
market, resulted in lower than anticipated sales of MagneGas fuel in the 3^rd
quarter. The Company is now also focusing on selling fuel to those industries
that benefit from lower steel prices such as fabricators and ship builders.
The intention is to diversify sales channels in order to hedge against the
volatility of the scrap steel industry.

Nine Month Results

For the nine months ended September 30, 2012, total revenues were $522,052, an
increase of $295,949 or 131%, from revenues of $226,103 for the first nine
months of 2011.

Metal cutting revenues were $452,053 for the nine months ended September 30,
2012, a 326% increase over metal cutting revenues of $106,104 for the same
period in 2011. Metal cutting revenues as a percentage of total revenues for
the nine months ended September 30, 2011 were 87% as compared to 47% for the
same period in 2011. Licensing fees were $69,999 for the first nine months of
2012, a 42% decrease over licensing fees of $119,999 for the same period last
year.

Operating expenses were $4,958,621 for the first nine months of 2012,
increasing 187% from operating expenses of $1,725,620 for the same period in
2012, primarily due to the opening of new facilities, a rise in headcount to
support sales and production efforts and investments in research &
development. The Company had an operating loss for the nine months ended
September 30, 2012 of $4,958,621, compared to an operating loss of $1,725,620
for the same period in 2011.

The Company recorded a net loss of $4,959,000, or $0.28 per basic and diluted
share, for the nine months ended September 30, 2012 as compared to a net loss
of $1,080,508 or $0.08 per basic and diluted share, for the same period in
2011.

The MagneGas IR App is now available for free in Apple's App Store for the
iPhone or iPad http://bit.ly/AfLYwwand at Google Play
http://bit.ly/Km2iykfor Android mobile devices.

To be added to the MagneGas investor email list, please email
pcarlson@kcsa.comwith MNGA in the subject line.

About MagneGas Corporation

Founded in 2007, Tampa-based MagneGas Corporation (NASDAQ: MNGA) is the
producer of MagneGas^TM, a natural gas alternative and metal working fuel that
can be made from certain industrial, municipal, agricultural and military
liquid wastes following the receipt of appropriate governmental permits.

The Company's patented Plasma Arc Flow^TM process gasifies liquid waste,
creating a clean burning hydrogen based fuel that is essentially
interchangeable with natural gas. MagneGas^TM can be used for metal working,
cooking, heating, powering bi fuel automobiles and more. For more information
on MagneGas, please visit the Company's website at www.magnegas.com.

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements as defined within
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. These statements relate to
future events, including our ability to raise capital, or to our future
financial performance, and involve known and unknown risks, uncertainties and
other factors that may cause our actual results, levels of activity,
performance, or achievements to be materially different from any future
results, levels of activity, performance or achievements expressed or implied
by these forward-looking statements. You should not place undue reliance on
forward-looking statements since they involve known and unknown risks,
uncertainties and other factors which are, in some cases, beyond our control
and which could, and likely will, materially affect actual results, levels of
activity, performance or achievements. Any forward-looking statement reflects
our current views with respect to future events and is subject to these and
other risks, uncertainties and assumptions relating to our operations, results
of operations, growth strategy and liquidity. We assume no obligation to
publicly update or revise these forward-looking statements for any reason, or
to update the reasons actual results could differ materially from those
anticipated in these forward-looking statements, even if new information
becomes available in the future. The Company is currently using new ethylene
glycol to produce fuel until proper permits to process used liquid waste have
been obtained.

For a discussion of these risks and uncertainties, please see our filings with
the Securities and Exchange Commission. Our public filings with the SEC are
available from commercial document retrieval services and at the website
maintained by the SEC at http://www.sec.gov.



-Tables Follow-



MagneGas Corporation

Balance Sheets

(Unaudited)


                                               September 30,    December 31,
                                               2012             2011
                                               (Unaudited)      (Audited)
Assets
Current Assets
Cash and cash equivalents                      $ 4,314,751      $ 1,429,412
Accounts receivable, net of allowance for
doubtful accounts of $25,000 and $0,             104,825          19,050

respectively
Inventory, at cost                               1,715,285        656,992
Prepaid and other current assets                 -                2,500
Total Current Assets                        6,134,861        2,107,954
Property and equipment, net of accumulated
depreciation of $286,267 and $44,538,            5,159,346        2,561,384

respectively
Deferred tax asset                               456,500          456,500
Intangible assets, net of accumulated
amortization of $187,861 and $151,511,           539,139          575,489

respectively
Investment in joint ventures                     490,410          490,410
Security deposits                                2,153            -
Total Assets                                   $ 12,782,409     $ 6,191,737
Liabilities and Stockholders' Equity
Current Liabilities
Accounts payable                               $ 668,844        $ 291,249
Accrued expenses                                 277,766          125,011
Deferred revenue and customer deposits           256,663          326,662
Due to stockholder                               -                210,500
Due to related parties                           -                13,400
Total Current Liabilities                        1,203,273        966,822
Total Liabilities                                1,203,273        966,822
Stockholders' Equity
Preferred stock: $0.001 par;10,000,000         1,000            2
authorized; 1,000,000 issued and outstanding
Common stock: $0.001 par;900,000,000
authorized; 20,042,616 and 15,438,929            20,043           15,439

issued and outstanding, respectively
Additional paid-in capital                       21,627,523       10,334,904
Issued and unearned stock compensation           (13,333)         (28,333)
Accumulated deficit                              (10,056,097)     (5,097,097)
Total Stockholders' Equity                       11,579,136       5,224,915
Total Liabilities and Stockholders' Equity     $ 12,782,409     $ 6,191,737



Statements of Operations

(Unaudited)


                 Three Months Ended             Nine Months Ended
                 September 30,                  September 30,
                 2012            2011           2012            2011
Revenue:           201,096         81,253         522,052         226,103
Direct costs,      133,616         55,491         316,824         91,087
metal cutting
                   67,480          25,762         205,228         135,016
Operating
Expenses:
Selling and
related            293,660         68,992         615,495         288,089
expenses
General and        1,020,058       377,131        2,384,905       932,211
administration
Stock-based        672,099         95,850         1,699,622       456,490
compensation
Research and       71,875          53,031         185,748         130,535
development
Depreciation
and                108,822         17,769         278,079         53,311
amortization
Total Operating    2,166,514       612,773        5,163,849       1,860,636
Expenses
Operating          (2,099,034)     (587,011)      (4,958,621)     (1,725,620)
Income (Loss)
Other Income
and (Expense):
Interest           649             (30)           (379)           12
Total Other
Income             649             (30)           (379)           12
(Expense)
Net Income
(Loss) before      (2,098,385)     (587,041)      (4,959,000)     (1,725,608)
tax benefit
Provision for      -               (221,000)      -               (645,100)
Income Taxes
Net Income       $ (2,098,385)   $ (366,041)    $ (4,959,000)   $ (1,080,508)
(Loss)
Net Loss per
share:
Basic and    $ (0.11)        $ (0.02)       $ (0.28)        $ (0.08)
diluted
Weighted
average common
shares:
Basic and      19,124,100      15,366,332     17,410,423      13,397,682
diluted

On June 26, 2012, we affected a 1-10 reverse stock split for our common
stock.All share and per share information has been retroactively adjusted to
reflect the reverse stock split.





SOURCE MagneGas Corporation

Website: http://www.magnegas.com
Contact: KCSA Strategic Communications, Philip Carlson, +1-212-896-1233,
pcarlson@kcsa.com or Brad Nelson, +1-212-896-1217, bnelson@kcsa.com