TGEN

Tecogen is a real business — high-efficiency cogeneration/CHP, chillers and heat pumps, 3,200+ units shipped, and more than half of revenue now from recurring long-term maintenance and energy contracts that MD&A calls a 'predictable revenue stream.' FY2025 revenue grew a healthy +19.7% to $27.1M. That is the good news, and it is where it ends. The loss line is going the wrong way, fast: net income has gone from +$3.70M profit in 2021 to losses of -$2.45M, -$4.60M, -$4.76M and now -$8.25M in 2025 — the loss nearly doubled year-over-year and the accumulated deficit is now -$55.9M. Critically, gross profit was flat (-0.5%) even as revenue rose ~20%, so gross margin compressed to 36.3% and operating expenses swamped it, producing a -30.5% operating margin.

The balance sheet looks superficially fine — $12.4M cash, equity up to $21.6M, liabilities/equity just 0.72x, current ratio ~3.1x and $19.6M working capital per the 10-K. But that equity and cash jump came from dilution: shares outstanding rose +19.5% to 29.9M. The real problem is that operating cash flow swung to -$9.91M (from positive the prior year, a -344% move). Burning ~$10M against $12.4M of cash leaves roughly a year of runway, which means another dilutive raise is a live near-term risk. Management itself states 'there can be no assurance we will be able to increase our revenues and become profitable,' and flags a capital-intensive, build-to-order model where components must be bought long before payment, plus supplier and customer concentration (one customer >10% of 2025 revenue).