MagneGas Reports Financial Results For 1st Quarter 2013

           MagneGas Reports Financial Results For 1st Quarter 2013

PR Newswire

TAMPA, Fla., May 15, 2013

TAMPA, Fla., May 15, 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 fiscal quarter ended March 31, 2013. During the
period, the Company focused its domestic business development strategy on
expanding retail gas sales capabilities. Internationally, the Company pursued
the sale of equipment for liquid sterilization and fuel production.
Additionally, MagneGas actively recruited new management and board members
with specific industry experience in relevant market sectors.

Beginning in January of 2013, the Company changed its domestic fuel sales
strategy from that of wholesale distribution to direct retail sales. To that
end, it became a full service gas provider by selling hard goods and other
gases to complement MagneGas sales in the metal working market. The Company
began a focus on the fabrication market as opposed to steel recycling centers,
where a recent drop in steel pricing has negatively impacted fuel demand. In
order to expedite this strategy, the Company has hired several new retail gas
salespeople and a new Vice President of Industrial Gas Sales, Bryan George.
Mr. George brings over 20 years of direct industry experience working with
multinational companies such as AirGas, Inc. and Matheson Tri-Gas, Inc. The
Company believes his expertise in bringing new fuels to market will have a
direct impact on MagneGas market penetration. Internationally, the Company
continues to develop several potential equipment sales in the sewage
sterilization and waste to energy sectors and it has enhanced its relationship
with a large state university to become a demonstration and testing center for
equipment sales.

March 31, 2013 Financial Highlights:

  oTotal revenues of $130,840 for March 31, 2013 as compared to $131,983 for
    the same period prior year;
  oMetal cutting revenue remained flat at $107,507 for March 31, 2013 as
    compared to $108,650 for the same period prior year;
  oOperating expenses increased to $1,631,050 for March 31, 2013 versus
    $759,248 for the same period 2012, and;
  oThe Company had an ending cash balance of $453,068 on March 31, 2013
    versus $1,470,642 on December 31, 2012.

March 31, 2013 Business Highlights:

  oThe contract with Clear Sky Energy from Mexico was signed and a $100,000
    deposit received;
  oStrategic partnerships with General Motors, US Navy, two metropolitan fire
    departments and a large state university progressed;
  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.

March 31, 2013 Financial Results

For the fiscal quarter ended March 31, 2013, revenues were $130,840, as
compared to $131,983 for the same period in 2012. Metal cutting revenue
remained flat at $107,507 for the quarter ended March 31, 2013, as compared to
$108,650 for the quarter ended March 31, 2012. This was primarily due to the
change in the Company's sales strategy from wholesale to retail and the ramp
up period required with a new sales force and new products. 

Operating expenses increased 241% from $759,248 for the quarter ended March
31, 2012 to $1,631,050 for the quarter ended March 31, 2013. This increase
was due to the deployment of three refineries in Michigan and Florida during
2012 and the operating costs associated with those facilities. In addition,
stock based compensation increased from $5,998 for the quarter ended March 31,
2012 to $399,800 for the quarter ended March 31, 2013. This increase was
primarily due to stock option plans instituted for the executives and
management team. The Company had an operating loss of $694,362 for the
quarter ended March 31, 2012, as compared to an operating loss of $1,564,713
for the quarter ended March 31, 2013. 

The Company continued to show progress in various strategic and sales
relationships announced in its Annual Report on Form 10-K. An update to these
relationships is as follows:

  oThe US Navy continues to be interested in MagneGas fuel for metal cutting
    applications such as in the decommissioning of ships and the Company has
    provided further testing data as requested. In addition, the Navy has
    held several meetings with the Company to test the use of the Plasma Arc
    Flow technology for applications such as treating used oils and other
    liquid wastes at forward bases. The Navy is in the process of obtaining
    funding in order to progress the liquid waste segment of the relationship
    with the Company.
  oThe 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. This testing continued during the first
    quarter of 2013 and several liquids were analyzed and tested.
  oThe Company is working with a large state university to develop a testing
    and demonstration center for the MagneGas technology with an initial focus
    on agricultural waste to fuel processing. The university is in the process
    of obtaining funding for this project.
  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. One fire department has ordered fuel samples for further
    testing and the other developed a training video for the use of MagneGas
    by firefighters.

The MagneGas IR App is now available for free in Apple's App Store for the
iPhone or iPad and at Google Play
for Android mobile devices.

To be added to the MagneGas investor email list, please email 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


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

MagneGas Corporation
Balance Sheets
                                              March 31,        December 31,
                                              2013             2012
                                              (Unaudited)      (Audited)
Current Assets
Cash and cash equivalents                     $ 453,068        $ 1,470,642
Accounts receivable, net of allowance for
doubtful accounts of $61,792 and $61,792,       142,902          119,207
Inventory, at cost                              1,035,412        961,984
Prepaid and other current assets                134,444          106,600
Total Current Assets                            1,765,826        2,658,433
Property and equipment, net of accumulated
depreciation of $603,876 and $448,302,          7,094,330        7,193,371
Deferred tax asset                            -                  -
Intangible assets, net of accumulated
amortization of $212,095 and $199,978,          514,905          527,022
Investment in joint ventures                    490,410          490,410
Security deposits                               2,551            2,151
Total Assets                                  $ 9,868,022      $ 10,871,387
Liabilities and Stockholders' Equity
Current Liabilities
Accounts payable                              $ 581,479        $ 483,688
Accrued expenses                                83,059           95,856
Deferred revenue and customer deposits          209,997          233,330
Customer Deposits                               100,000          -
Due to stockholder                              -                -
Due to related parties                          -                -
Total Current Liabilities                       974,535          812,874
Total Liabilities                               974,535          812,874
Stockholders' Equity
Preferred stock: $0.001 par;10,000,000        1,000            1,000
authorized; 1,000,000 issued and outstanding
Common stock: $0.001 par;900,000,000
authorized; 20,115,019 and 20,042,616 issued    20,115           20,043
and outstanding,
Additional paid-in capital                      22,674,569       22,284,841
Issued and unearned stock compensation          (3,333)          (13,333)
Accumulated deficit                             (13,798,864)     (12,234,039)
Total Stockholders' Equity                      8,893,487        10,058,512
Total Liabilities and Stockholders' Equity    $ 9,868,022      $ 10,871,387

MagneGas Corporation
Statements of Operations
                                      Three Months Ended
                                      March 31,
                                      2013            2012
Revenue:                              $ 130,840       $ 131,983
Direct costs, metal cutting            64,504          65,475
                                        66,336          66,508
Operating Expenses:
General and administration              994,380         596,796
Investor relations                      55,889          35,282
Stock-based compensation                399,800         5,998
Research and development                13,290          49,657
Depreciation and amortization           167,691         71,515
Total Operating Expenses                1,631,050       759,248
Operating Income (Loss)                 (1,564,714)     (692,740)
Other Income and (Expense):
Interest                                (111)           (1,622)
Total Other Income (Expense)            (111)           (1,622)
Net Income (Loss) before tax benefit    (1,564,825)     (694,362)
Provision for Income Taxes              -
Net Income (Loss)                     $ (1,564,825)   $ (694,362)
Net Loss per share:
Basic and diluted                     $ (0.07)        $ (0.04)
Weighted average common shares:
Basic and diluted                       20,081,935      15,473,188

SOURCE MagneGas Corporation

Contact: Investor Contacts: KCSA Strategic Communications, Philip Carlson /
Brad Nelson, +1 212.896.1233 / +1 212.896.1217, /
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