MagneGas Reports Financial Results For 2nd Quarter 2013

           MagneGas Reports Financial Results For 2nd Quarter 2013

PR Newswire

TAMPA, Fla., Aug. 14, 2013

TAMPA, Fla., Aug. 14, 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 June 30, 2013. During the
period, the Company refocused its domestic business development strategy on
expanding gas sales through regional distributors. Internationally, the
Company continued to pursue ongoing opportunities for the sales of equipment
for liquid sterilization and fuel production. Additionally, MagneGas added
new independent board members with specific industry experience in relevant
market sectors.

The Company developed a new strategic plan with a focus on generating revenue
in several key areas. This plan includes securing recurring revenue through
gas sales to regional distributors, producing revenue through large equipment
sales to customers in international markets and the development of key
strategic relationships for long-term growth. To that end, the Company
pursued several regional distributors for gas sales in the metal working
market, focusingon those distributors with existing prior relationships with
its new Senior Vice President of Industrial Gas Sales, Bryan George. The
Company also signed several new independent brokers in international markets
where it believes there is the most potential for sales, and it recruited a
new executive consultant with experience in plasma technology to develop new
strategic relationships domestically.

June 30, 2013 Highlights:

  oOperating expenses decreased for the quarter to $1,504,497 versus
    $2,238,087 for the same period prior year
  oThe Company added a new Chairman and new members to the Board of
    Directors. It also recruited a new Chief Scientist;
  oStrategic partnerships with General Motors, the US Navy, and two
    metropolitan fire departments progressed while new strategic relationship
    were pursued; and
  oThe Company completed an underwritten public offering for $2,455,325.

June 30, 2013 Financial Results

For the fiscal quarter ended June 30, 2013, revenues were $133,475, as
compared to $188,973 for the same period in 2012. Metal cutting revenue was
down at $110,142 for the quarter ended June 30, 2013, as compared to $165,640
for the quarter ended June 30, 2012. This was primarily due to the change in
the Company's sales strategy and larger one-time sales in the prior period.

Operating expenses decreased 33% from $2,238,087 for the quarter ended June
30, 2012 to $1,504,497 for the quarter ended June 30, 2013. This decrease was
attributed to cost savings implemented in this quarter. In addition, stock
based compensation decreased from $1,021,525 for the quarter ended June 30,
2012 to $384,700 for the quarter ended June 30, 2013. The Company had an
operating loss of $2,166,253 for the quarter ended June 30, 2012, as compared
to an operating loss of $1,451,908 for the quarter ended June 30, 2013. 

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

  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 and several liquids
    were analyzed and tested.
  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. The Navy has added a
    requirement that the fuel must not contain carbon monoxide. To that end
    the Company is in the process of developing this new fuel and is currently
    testing various methods to achieve the required results.
  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. This project is continuing with positive results to
    date.

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
Balance Sheets
                                              June 30,         December 31,
                                              2013             2012
                                              (Unaudited)      (Audited)
Assets
Current Assets
Cash and cash equivalents                     $ 1,031,162      $ 1,470,642
Accounts receivable, net of allowance for
doubtful accounts of $69,514 and               119,233          119,207
$61,792, respectively
Inventory, at cost                              1,454,036        961,984
Prepaid and other current assets                181,015          106,600
 Total Current Assets                         2,785,446        2,658,433
Property and equipment, net of accumulated
depreciation of $727,217 and                   6,595,185        7,193,371
$448,302, respectively
Intangible assets, net of accumulated
amortization of $224,212 and $199,978,          502,788          527,022
respectively
Investment in joint ventures                    490,410          490,410
Security deposits                               2,551            2,151
Total Assets                                  $ 10,376,380     $ 10,871,387
Liabilities and Stockholders' Equity
Current Liabilities
Accounts payable                              $ 132,087        $ 483,688
Accrued expenses                                28,208           95,856
Deferred revenue and customer deposits          186,664          233,330
Customer Deposits                               100,000          0
 Total Current Liabilities                    446,959          812,874
Total Liabilities                               446,959          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; 22,871,526and 20,042,614          22,871           20,043
issued and
outstanding, respectively
Additional paid-in capital                      25,159,475       22,284,841
Issued and unearned stock compensation          (3,333)          (13,333)
Accumulated deficit                             (15,250,593)     (12,234,039)
Total Stockholders' Equity                      9,929,420        10,058,512
Total Liabilities and Stockholders' Equity    $ 10,376,380     $ 10,871,387





MagneGas Corporation
Statements of Operations

(Unaudited)
                  Three Months Ended              Six Months Ended

                  June 30,                        June 30,
                  2013            2012            2013            2012
Revenue:        $ 133,475       $ 188,973       $ 264,325       $ 320,956
Direct costs,     80,906          117,733         145,290         183,208
metal cutting
                  52,569          71,240          119,034         137,748
Operating
Expenses:
General and       917,640         1,005,411       1,911,620       1,602,207
administration
Investor          60,127          49,193          116,016         84,475
relations
Stock-based       384,700         1,021,525       785,294         1,027,523
compensation
Research and      2,821           64,216          16,111          113,873
development
Depreciation
and               139,208         97,742          306,899         169,257
amortization
Total
Operating         1,504,497       2,238,087       3,135,941       2,997,335
Expenses
Operating         (1,451,928)     (2,166,847)     (3,016,906)     (2,859,587)
Income (Loss)
Other Income
and (Expense):
Interest          21              594             353             (1,028)
Total Other
Income            21              594             353             (1,028)
(Expense)
Net Income
(Loss) before     (1,451,908)     (2,166,253)     (3,016,554)     (2,860,615)
tax benefit
Provision for
Income Taxes
Net Income      $ (1,451,908)   $ (2,166,253)   $ (3,016,554)   $ (2,860,615)
(Loss)
Net Loss per
share:
Basic and       $ (0.07)        $ (0.12)        $ (0.15)        $ (0.17)
diluted
Weighted
average common
shares:
Basic and         20,900,099      17,613,154      20,493,277      16,544,172
diluted





SOURCE MagneGas Corporation

Website: http://www.MagneGas.com
Contact: Investor Contacts: KCSA Strategic Communications, Philip Carlson /
Brad Nelson, +1 212.896.1233 / +1 212.896.1217, pcarlson@kcsa.com /
bnelson@kcsa.com
 
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