Under the Symbol:
UPDATE: Taronis Fuels to Release Form 10
Friday, September 20, 2019 10:45 AM
This Press Release Replaces the Press Release Issued on September 20, 2019 at 9:00 AM EDT
Net Loss Reduced 79%, Clear Path to Profitability
PHOENIX, AZ / ACCESSWIRE / September 20, 2019 / Taronis Technologies, Inc., ("Taronis" or "the Company") (NASDAQ:TRNX), a leading clean technology company in the renewable resources and environmental conservation industry, announced today that a Form 10 will be submitted with the Securities and Exchange Commission shortly for Taronis Fuels, Inc. This document is a prerequisite for the announced spin-off of the wholly owned subsidiary from Taronis Technologies, which is expected to occur in early November.
As part of the Form 10, the financial statements of Taronis Fuels were prepared and presented as a stand-alone business. Revenues for the first six months of 2019 were $10.8 million, which represents a 163% increase from $4.1 million in the first six months of 2018. Expenses decreased $9.5 million, or 58% from the previously reported $16.5 million in the Company's most recent 10-Q to $7.0 million as reported in the Form 10 for Taronis Fuels.
The significant decrease in expenses from the most recent 10-Q to this Form 10 was due to the exclusion of operating expenses related to Taronis Technologies that were not directly related to Taronis Fuels. The exclusion of these expenses resulted in a sizable improvement in net profitability. The net loss improved 79% from $11.9 million as reported in the Taronis Technologies 10-Q, to a net loss of $2.5 million on the Form 10. EBITDA for the first six months of 2019 was a negative $2.1 million, with an average burn rate of approximately $0.35 million per month.
"Taronis Fuels is well positioned for continued growth and profitability in the near term," commented Scott Mahoney, CEO of Taronis Fuels. "Our revenues are consistently growing, and we have several expected catalysts for accelerated growth prior to year end. We are also pleased to present the full impact of excluded the cost structure of Taronis Technologies from Taronis Fuels. As a result, we eliminated 58% of our operating expenses, realizing a 79% improvement in our net income."
"Going forward, we have already delivered on several milestones that should further improve profitability in 2019. First, our Clearwater fill plant should improve net profitability by up to $0.1 million per month. Our new Flint, Texas MagneGas production facility should impact our net profitability by a similar amount. We have also added several sizable new clients that should add almost $50,000 to our net profits per month. When all of these achievements are combined, we are very close to profitability today. We look forward to providing further updates on the financial performance of Taronis Fuels throughout the remainder of the year," concluded Mr. Mahoney.
About Taronis Technologies, Inc.
Taronis Technologies, Inc. (TRNX) owns a patented plasma arc technology that enables two primary end use applications for fuel generation and water decontamination.
The Company's fuel technology enables a wide use of hydrocarbon feedstocks to be readily converted to fossil fuel substitutes. The Company is developing a wide range of end market uses for these fuels, including replacement products for propane, compressed natural gas and liquid natural gas. The Company currently markets a proprietary metal cutting fuel that is highly competitive with acetylene. The Company distributes its proprietary metal cutting fuel through independent distributors in the US and through its wholly owned distributors doing business as "MagneGas Welding Supply". The Company operates 22 locations across California, Texas, Louisiana, and Florida.
The Company's technology can also be implemented for the decontamination of waste water, including sterilizing water, eradicating all pathogens. The technology is being tested to determine if it can completely eliminate pharmaceutical contaminants such as antibiotics, hormones and other soluble drugs suspended in contaminated water. The technology process is capable of reducing or eliminating other contaminants, such as harmful metals, as well as nitrogen, phosphorus, and potassium levels that trigger toxic algae blooms. The technology has prospective commercial applications in the agricultural, pharmaceutical, and municipal waste markets. For more information on Taronis, please visit the Company's website at http://www.TaronisTech.com.
Taronis also owns a controlling interest in Water Pilot, LLC. The WATER PILOT® System immediately reduces water consumption and provides live remote consumption monitoring for long term leak protection and water asset management. An integral, client-based alarm and notification system reports to any mobile device. Water Pilot may be appropriate for a wide range of businesses or properties with a water meter. For more information, please visit our website at www.gowaterpilot.com/
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.
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.
SOURCE: Taronis Technologies