TORONTO--(Marketwire - Nov 15, 2012) - Totally Green Inc. (
Total revenue was $9,431 for the third quarter of 2012, compared to $224,746 for third quarter in 2011. The decline in revenue is a result of the shift from a "Unit Sales" model to a "Service as a Solution" model, in which the Company's revenue is based on monthly service fees and not sales.
Net loss was ($3,126,850) for the quarter. Of this loss, ($410,000) related to transaction closing costs related to the new investment of $5,000,000 in the Company and ($2,255,439) relating to the write-down of assets from discontinued operations and marketing rights associated with non-core markets. The balance of ($461,411) is loss associated with other operating and ongoing expenses of the Company.
Cash and cash equivalents totaled $1,456,850 at September 30, 2012. Total liabilities for the company are $227,130, which include $160,900 relating to the purchase of equipment that has already been installed on our customers' sites.
Q3 2012 Operational Highlights
During the quarter, the Company completed a transaction to secure a $5 million equity investment and a $15 million equipment finance line to support the growth of the business under its previously announced Service as a Solution model. In conjunction with the transaction, the Company has made changes to its management team and board of directors. The equity injection was used to pay down the Company's previous line of credit, cover transaction costs and provide working capital to support the expansion of the business.
The equity infusion and managerial changes were driven by a refocusing of the strategy of the Company. Going forward, TG will only offer the ORCA and its waste disposal services for a recurring monthly fee on a contracted basis. This Service as a Solution model is sold under long term agreements and includes the supply of our proprietary organisms, maintenance and any repairs required to keep the ORCA operational and ensure it is processing food waste at its prescribed capacity.
The Company has also decided to suspend any allocation of resources to its water bottle product at this time. As part of this decision, the Company is negotiating the grant of an exclusive license to the green bottle trademarks and any related intellectual property. If this negotiation results in an agreement, the Company will receive a royalty payment for all future sales of the green bottle product while all expenses will be borne by the licensee.
The Company's initial efforts have focused on the Toronto market as we refine our processes to serve customers under the Service as a Solution model before expanding across North America. The initial results have been promising as we installed 13 units during the third quarter. These unit installations are not yet generating revenue as customers are still under the free service period offered to allow them to experience the benefits of our service. We are already receiving monthly service fees on 3 units that were installed in the second quarter of 2012. Management anticipates that all existing customers will begin paying their monthly service fees during the fourth quarter of 2012. We believe these results are promising given TG had 37 units in service throughout the United States prior to the change in business model.
"The Third Quarter of 2012 was highlighted by the equity investment and shift to a Service as a Solution model for the ORCA. The initial acceptance of our product in the Toronto market is promising but considerable work remains to achieve our growth and profit objectives," said Shawn Dym, CEO of Totally Green. "Our service model has shown that we can create significant growth potential with proper execution and focus."
"The Profit and Loss statement reflects the fact that we are in the early stages of our business plan. We do not anticipate profitability for some time as we continue to fund future expansion into new markets. We have eliminated the Company's previous line of credit and have sufficient cash on the balance sheet to fund the execution of our business plan."
"All things considered, we are pleased with the transition to a new operating model and hope to expand our service model in other major centres in North America early in 2013."
About Totally Green
Totally Green, Inc. develops and markets the company's ORCA Green™ Machine. The ORCA (Organic Refuse Conversion Alternative) machine allows for rapid composting of most organic material in institutional and commercial end-user applications, after which the liquid compost is disposed of through the ordinary sewer system. The machine creates meaningful cost savings for customers while diverting food waste from landfills and reducing methane gas production. For more information, please visit www.totallygreen.com.
Important Cautions Regarding Forward-Looking Statements
This press release contains "forward-looking statements." Forward-looking statements are statements concerning plans, objectives, goals, strategies, expectations, intentions, projections, developments, future events, or performance, underlying (expressed or implied) assumptions and other statements that are other than historical facts. These forward-looking statements are only predictions. No assurances can be given that such predictions will prove correct. Actual events or results may differ materially. Forward-looking statements should be read in light of the cautionary statements and risks that include, but are not limited to, the risks associated with a small company, our comparatively limited financial resources, the uncertainty of market trends, the competition faced from other current and future technologies and the uncertainties of competitive pressures we face. These or other risks could cause actual results to differ materially from the future results indicated or implied in such forward-looking statements. We undertake no obligation to update or revise such statements.
|TOTALLY GREEN INC.|
|September 30, 2012||December 31, 2011|
|Cash & Cash Equivalents||1,431,849||99,816|
|Temporary Investments - Restricted||25,000||25,000|
|Trade Accounts Receivable, net||8,913||116,157|
|Accounts Receivable - Other||--||20,000|
|Total Current Assets||1,520,063||833,797|
|PROPERTY & EQUIPMENT|
|Furniture and Fixtures||--||4,865|
|Machinery and Equipment||333,551||1,113,300|
|Property and Equipment, net||333,551||47,027|
|Intangible Assets, net||--||659,616|
|Prepaid Marketing Fees||--||1,050,050|
|Discontinued Operations - Assets||--||469,499|
|September 30, 2012||December 31, 2011|
|LIABILITIES AND EQUITY|
|Total Current Liabilities||227,130||587,518|
|Fees Payable - Long-term||--||203,494|
|Related Party Line of Credit||--||1,850,000|
|Common Stock - $0.001 Par Value, 750,000,000 shares authorized 625,777,894 and 587,732,546 shares issued and outstanding||672,428||625,778|
|Series A - $0.001 Par Value 1,900,000 shares authorized, issued and outstanding||-||1,900|
|Series B - $0.001 Par Value 3,000 shares authorized, issued and outstanding||-||3|
|Series C - $0.001 Par Value 50,000 shares authorized, issued and outstanding||50||--|
|Series E - $0.001 Par Value 12,000 shares authorized, issued and outstanding||12||--|
|Series F - $0.001 Par Value 7,000 shares authorized, issued and outstanding||7||--|
|Additional Paid in Capital:|
|Preferred Stock - Series A||--||55,100|
|Preferred Stock - Series B||--||1,149,997|
|Preferred Stock - Series C||4,499,950||--|
|Preferred Stock - Series E||573,052|
|Preferred Stock - Series F||191,017|
|Retained Earnings ( Deficit)||
|TOTAL LIABILITIES and EQUITY||$||1,876,073||$||3,073,516|
|TOTALLY GREEN INC.|
|STATEMENT OF OPERATIONS|
|Jul - Sept 2012||Jul - Sept 2011||Jan - Sept 2012||Jan - Sept 2011|
|Cost of Goods Sold||169,100||128,192||400,610||364,502|
|Selling, general and administrative expenses||1,150,052||728,211||2,154,307||1,523,767|
|Total Operating Expenses||1,150,052||728,211||2,154,307||1,523,767|
|Other Incomes /(Expenses)|
|Loss on Investment||(1,121,910||)||--||(1,121,910||)||--|
|Total Other Income / (Expense)||(1,817,129||)||(1,672||)||(1,700,069||)||47,527|
|Net Loss Attributable to Common Stockholders||(3,126,850||)||(633,329||)||(3,849,030||)||(1,143,323||)|
- Investment & Company Information
Chief Executive Officer
Totally Green, Inc.