MAGNEGAS CORP

CIK:0001353487|SEC Filings

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Revenue:
Revenue	$ 5,319	$ 2,599	$ 16,133	$ 6,678
Cost of Revenues	2,867	1,601	8,754	4,331
Gross Profit	2,452	998	7,379	2,347
Operating Expenses:
Selling, general and administration	10,476	4,543	26,950	12,209
Research and development		4	28	8
Total Operating Expenses	10,476	4,547	26,978	12,217
Operating Loss	(8,024)	(3,549)	(19,599)	(9,870)
Other (Expense) Income:
Interest	(240)	(11)	(202)	(107)
Accretion of debt discount		(53)		(170)
Other income				20
Total Other (Expense) Income	(240)	(64)	(202)	(257)
Net Loss	(8,264)	(3,613)	(19,801)	(10,127)
Deemed dividend	17	416	3,880	1,660
Net loss attributable to common shareholders	$ (8,281)	$ (4,029)	$ (23,681)	$ (11,787)
Net loss attributable to common shareholders per share: Basic and Diluted	$ (0.49)	$ (10.23)	$ (2.78)	$ (56.94)
Weighted average common shares: Basic and Diluted	16,758,496	393,666	8,516,344	206,841

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash Flows from Operations
Net Loss	$ (19,801)	$ (10,127)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation and amortization	1,601	988
Accretion of debt discount		170
Stock based compensation	38	143
Common stock and warrants issued for services	6,659	2,137
Gain on disposal of fixed assets		(16)
Deferred revenue and customer deposits		(44)
Provision for doubtful accounts	127
Amortization of right-of-use assets	573
Changes in operating assets:
Accounts receivable	(151)	49
Inventory	17	554
Prepaid and other current assets	(629)	(167)
Accounts payable	(407)	137
Accrued Expenses	1,051	(168)
Payments on lease liabilities	(769)
Net cash used in operating activities	(11,691)	(6,344)
Cash Flows from Investing Activities
Deposit on acquisition	(550)	69
Cash acquired in acquisition of businesses	69
Cash paid for acquisitions	(6,500)	(3,768)
Cash paid for noncompete agreements	(2,000)	(1,658)
Purchase of property and equipment	(4,868)	(948)
Purchase of intangibles	(2,255)
Security deposit	1,143	10
Net cash used in investing activities	(14,961)	(6,294)
Cash Flows from Financing Activities
Common shares issued for the exercise of warrants	1,202	1
Proceeds for common stock issued for cash	27,970	664
Fractional share repayment	(4)
Finance lease payments	(106)	(29)
Payments on notes payable		(497)
Proceeds from notes payables		244
Net proceeds on related party notes and advances		23
Repayment of related party notes		(119)
Water Pilot financing	957
Net proceeds on issuance of series C preferred stock units, net of costs	449	14,942
Stock Issuance costs	(1,368)	(1,342)
Repurchase of Series C & E preferred stock	(3,500)
Net cash provided by financing activities	25,600	13,887
Net increase in cash	(1,052)	1,249
Cash and restricted cash, beginning of period	2,405	587
Cash and restricted cash, end of period	1,353	1,836
Supplemental disclosure of cash flow information Cash paid during the period for:
Interest		96
Supplemental disclosures of non-cash investing and financing activities:
Common shares issued for settlement of accounts payable	393	565
Series E preferred stock	50
Conversion of Series C preferred stock into shares of common stock		1,775
Conversion of Series E preferred stock into shares of common stock	7	381
Conversion of Series F preferred stock into shares of common stock		556
Series F preferred stock issued for the settlement of accounts payable		556
Deemed dividend in connection with the issuance of Series C Preferred stock		(1,660)
Common stock issued for purchase of subsidiary	2,232
NG Enterprises Inc [Member]
Supplemental disclosures of non-cash investing and financing activities:
Assets acquired		916
Liabilities assumed		(149)
Green Arc Supply, L.L.C. [Member]
Supplemental disclosures of non-cash investing and financing activities:
Assets acquired		2,399
Liabilities assumed		(154)
Fair value of common stock issued in Green Arc Supply acquisition		1,260
Trico Welding Supplies, Inc [Member]
Supplemental disclosures of non-cash investing and financing activities:
Assets acquired		3,052
Liabilities assumed		(1,106)
Tyler Welders Supply [Member]
Supplemental disclosures of non-cash investing and financing activities:
Assets acquired	1,620
Liabilities assumed	(653)
Cylinder Solutions, Inc [Member]
Supplemental disclosures of non-cash investing and financing activities:
Assets acquired	376
Liabilities assumed	(41)
Complete Cutting & Welding Supplies, Inc [Member]
Supplemental disclosures of non-cash investing and financing activities:
Assets acquired	1,083
Liabilities assumed	$ (316)

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Current Assets
Cash	$ 536	$ 1,599
Accounts receivable, net of allowance for doubtful accounts of $546 and $419, respectively	3,007	1,395
Inventory	3,476	2,921
Prepaid and other current assets	970	332
Total Current Assets	7,989	6,247
Property and equipment, net of accumulated depreciation of $3,524 and $2,683, respectively	16,706	9,686
Deposit on acquisition		550
Intangible assets, net of accumulated amortization of $1,585 and $824, respectively	7,374	3,379
Restricted deposit	816	806
Security deposits	184	227
Right-of-use assets, net of accumulated amortization of $573 and $0, respectively	3,569
Goodwill	11,123	6,691
Total Assets	47,761	27,586
Current Liabilities
Accounts payable	2,811	2,601
Accrued expenses	1,601	755
Financing leases liability, current	90	90
Operating leases liability, current	625
Note payable, net of debt discount of $147 and $0, respectively	1,386	94
Total Current Liabilities	6,513	3,540
Long Term Liabilities
Note payable, net of current	1,477	602
Financing leases liability, net of current	97	203
Operating leases liability, net of current	2,944
Senior convertible debenture, net of debt discount of $65 and $0, respectively	457
Total Liabilities	11,488	4,345
Commitments and Contingencies
Temporary Equity
Series E Preferred stock: 455,882 shares designated; 0 and 36,765 shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively, with a liquidation preference of approximately $0 at September 30, 2019		50
Stockholders' Equity
Common stock: $0.001 par; 190,000,000 shares authorized; 18,229,459 shares issued and outstanding at September 30, 2019 and 1,546,563 shares issued and outstanding at December 31, 2018.	18	2
Additional paid-in-capital	135,676	102,809
Accumulated deficit	(99,421)	(79,620)
Total Stockholders' Equity	36,273	23,191
Total Liabilities, Temporary Equity and Stockholders' Equity	$ 47,761	$ 27,586