MagneGas Reports Annual Financial Results For 2012

              MagneGas Reports Annual Financial Results For 2012

PR Newswire

TAMPA, Fla., April 1, 2013

TAMPA, Fla., April 1, 2013 /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 year ending December 31, 2012. During the year, the
Company focused its domestic business development strategy on selling fuel to
large metal recycling facilities and demolition companies and expanding its
retail gas sales capabilities. Internationally, the Company pursued the sale
of equipment for liquid sterilization and fuel production. Additionally
MagneGas invested much of its effort in preparing its operations for future
sales of fuel and equipment.

The sales results for metal cutting fuel were less than anticipated, primarily
due to a sharp reduction in steel pricing during 2012, which negatively
impacted demand for fuel from the metal recycling and demolition industries.
The Company has since begun selling fuel to industries that benefit from low
steel prices, such as fabrication and manufacturing companies. To supplement
sales in these markets, the Company has become a full service provider of
metal working fuel and hard goods, expanding its ability to service these
industries. In addition, the Company continues to focus its efforts on
developing key strategic relationships, while selling gasification systems
internationally. During 2012 the Company signed a preliminary purchase order
agreement with a company from Mexico for the sale of a gasification system for
$2.7 million plus royalties. The definitive agreements for this sale were
signed in March of 2013 and the initial deposit was received.

2012 Financial Highlights:

  oTotal revenues of $677,529 for 2012 which is an increase of 178% as
    compared to $381,892 for the prior year;
  oMetal cutting revenues increased 423% to $584,197 in 2012 as compared to
    $138,560 for 2011 and;
  oEnding year cash balance of $1.47 million as compared to $1.43 million for
    the same period December 31, 2011.

2012 Business Highlights:

  oA $2.7 m contract with Clear Sky Energy from Mexico was initiated;
  oMetal cutting sales increased over 400%;
  oStrategic partnerships with General Motors, US Navy and a large University
    progressed;
  oThree Plasma Arc Gasification units were deployed in Florida and Michigan;
  oTwo manufacturing facilities were purchased one for the production of fuel
    and one for the production of gasification systems;

"2012 was a year of significant development for MagneGas Corporation," stated
Ermanno Santilli, Chief Executive Officer of MagneGas. "We quadrupled our
customer base for metal cutting fuel versus 2011, expanded into Michigan, made
good progress with several large strategic partners and initiated the $2.7m
sale in Mexico. We are committed to staying focused on our business plan as we
expand our metal cutting fuel market reach and ramp up equipment sales."

"We also deepened our relations with General Motors and the US Navy beyond
metal cutting and commenced discussions with a large University to establish a
demonstration and testing center to showcase the MagneGas technology to
agricultural and industrial customers from around the world. MagneGas
Corporation is in the enviable position of having a revolutionary technology
with new applications in several industries, the support of world class
partners and is debt free. We believe that the developments made in 2012 have
provided the foundation for success which through continued focus will bear
fruit in 2013 and for years to come," Santilli concluded.

2012 Financial Results

For the year ending December 31, 2012, total revenues were $677,529, an
increase of $295,637 or 178%, from revenues of $381,892 for 2011.

Metal cutting revenues were $584,197 for 2012, a 423% increase over metal
cutting revenues of $138,560 for the prior year. Metal cutting revenues as a
percentage of total revenue for 2012 were 86% versus 36% for the prior year.
Licensing fees were $93,332 for 2012, the same as for the prior year.

Operating expenses were $6,812,518 for 2012 increasing 208% from operating
expenses of $3,275,665 for the prior year, 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 2012 of $6,680,762 compared to an operating loss of
$2,936,719 for the prior year. Stock based compensation, included in Operating
Expenses was $2,053,090 in 2012 versus $787,990 the prior year.

The Company recorded a net loss of $7,136,942 or $0.32 per basic and diluted
share, for 2012, as compared to a net loss of $2,937,062 or $0.20 per basic
and diluted share, 2011.

The Company recently entered into commercial testing and discussion with a
select group of leading U.S. strategic industrial companies and military
contractors which, after conducting preliminary reviews of MagneGas™, are now
seeking further testing or have agreed to purchase MagneGas fuel.

  oThe US Navy continues to be interested in MagneGas fuel for metal cutting
    applications such as in the decommissioning of ships. The Navy is also now
    reviewing the Plasma Arc Flow technology for applications such as treating
    used oils and other liquid wastes at forward bases. The National Center
    for Manufacturing Sciences completed testing of MagneGas™ as an
    environmentally-friendly alternative for major metal cutting projects,
    particularly to reduce emissions during the breakup and recycling of
    retiring vessels for the Navy. The Company has received preliminary
    positive laboratory test results and received verbal confirmation that it
    has been selected to test MagneGas fuel onsite with a military end user.
    In addition, the military is exploring the gasification of liquid waste to
    produce fuels with the MagneGas system.
  oThe Company has been working with General Motors which has completed
    testing of MagneGas as an alternative to acetylene, has provided verbal
    confirmation that the fuel has been approved for use and is now purchasing
    MagneGas for use in select factories. In addition, the Company is working
    with General Motors to test various liquid wastes for processing and
    conversion to MagneGas in order to fuel several possible internal projects
    not related to metal cutting.
  oThe Company is working with a large University to develop a testing and
    demonstration center for the MagneGas technology with an initial focus on
    agricultural waste to fuel processing. The University has applied for two
    state grants for this project. This partnership will allow third party
    testing of the technology for these markets through governmental and
    university alliances.
  oThe Company is working with two major metropolitan fire departments to
    test MagneGas as a replacement to acetylene and other cutting systems used
    by firefighters.Most vehicles used by fire departments in the United
    States are equipped with acetylene gas to use with demolition and
    extraction emergencies.MagneGas is stored in cylinders that are much
    lighter than acetylene, making it easier to handle.In addition,MagneGas
    has a much smaller heat affected zone which can be critical to continued
    life in the event of human extraction from a vehicle or dwelling.
  oMagneGas forged alliances with a major industrial gas supplier and a hard
    good supplier to become a full service provider of metal cutting fuels,
    such as oxygen, argon and other gases while also selling hard goods such
    as tips, torches and other metal working products. This has allowed the
    Company to become a full service provider to metal cutting customers,
    expanding its ability to service these industries. These two alliances
    were signed early 2013.

The MagneGas IR App is now available for free in Apple's App Store for the
iPhone or iPad http://bit.ly/AfLYww and at Google Play http://bit.ly/Km2iyk
for Android mobile devices.

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

About MagneGas Corporation

Founded in 2007, Tampa-based MagneGas Corporation (NASDAQ: MNGA) is the
producer of MagneGas™, 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™ process gasifies liquid waste,
creating a clean burning hydrogen based fuel that is essentially
interchangeable with natural gas. MagneGas™ 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.



MagneGas Corporation
Audited Balance Sheets
                                                December 31,
                                                2012             2011
Assets
Current Assets
Cash                                            $ 1,470,642      $ 1,429,412
Accounts receivable, net of allowance for
doubtful accounts of $61,792 and $0,              119,207          19,050
respectively
Inventory (including units for resale), at        961,984          656,992
cost
Prepaid and other current assets                  106,600          2,500
Total Current Assets                              2,658,433        2,107,954
Property and equipment, net of accumulated
depreciation of $448,302 and $44,538,             7,193,371        2,561,384
respectively
Deferred tax asset                                0                456,500
Intangible assets, net of accumulated
amortization of $199,978 and $151,511,            527,022          575,489
respectively
Investment in joint ventures                      490,410          490,410
Security Deposits                                 2,151
Total Assets                                    $ 10,871,387     $ 6,191,737
Liabilities and Stockholders' Equity
Current Liabilities
Accounts payable                                $ 483,841        $ 291,249
Accrued expenses                                  95,704           125,011
Deferred revenue and customer deposits            233,330          326,662
Due to stockholder                                0                210,500
Due to related parties                            0                13,400
Total Current Liabilities                         812,875          966,822
Stockholders' Equity
Preferred stock: $0.001 par;10,000,000
authorized; 1,000,000issued and outstanding,     1,000            2
respectively
Common stock: $0.001 par;900,000,000
authorized; 20,042,616
                                                  20,043           15,439
and 15,438,930 1 issued and outstanding,
respectively
Additional paid-in capital                        22,284,841       10,334,906
Issued and unearned stock compensation            (13,333)         (28,333)
Accumulated deficit                               (12,234,039)     (5,097,097)
Total Stockholders' Equity                        10,058,512       5,224,915
Total Liabilities and Stockholders' Equity      $ 10,871,387     $ 6,191,737
The audit report and accompanying notes are an integral part of these
financial statements.



MagneGas Corporation
Audited Statements of Operations
                                           Year Ended December 31,
                                           2012                2011
Revenue                                    $  677,529          $  381,892
Direct Costs                                  545,773             42,946
Gross Profit                                  131,756             338,946
Operating Expenses:
Advertising                                   102,901             63,747
Selling                                       743,110             338,572
Professional: technical                       63,763              8,709
Professional: legal and accounting            608,354             655,314
Rent and overhead                             204,015             126,738
Office and administration                     2,080,854           1,031,690
Investor relations                            303,975             94,435
Stock-based compensation                      2,053,090           787,990
Research and development                      200,225             84,304
Depreciation and amortization                 452,231             84,166
Total Operating Expenses                      6,812,518           3,275,665
Operating Income (Loss)                       (6,680,762)         (2,936,719)
Other Income and (Expense)
Interest expense                              (2,814)             (343)
Interest income                               3,134               -
Total Other (Income) Expense                  320                 (343)
Net Income (Loss) before tax provision        6,680,442           (2,937,062)
Provision for Income Taxes                    (456,500)           -
Net Income (Loss)                          $  (7,136,942)      $  (2,937,062)
Loss per share:
Basic                                      $  (0.32)           $  (0.20)
Diluted                                    $  (0.32)           $  (0.20)
Weighted average common shares:
Basic                                         17,410,423          13,143,481
Diluted                                       17,410,423          13,143,481
The audit report and accompanying notes are an integral part of these
financial statements.



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
 
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