Setting The Record Straight, GERS Nearly Broke Even...
GERS reported a small loss of $285k in Q413, after one-time charges. This compares to a $500k loss in Q313 and a $700k loss in Q213.
With $600K to $700k in newly licensed revenue, as well as $1M in equipment sales in the pipeline, I fully expect and am predicting a profitable report this May.
"$2.5 million in income for 2012, while net loss for 2013 was $4.4 million, a differential of almost $7 million less income in a year when so many thought that new revenue streams, and record years for our clients would signal more revenue/income for GERS."
The truth can be found when the details are dissected.
The 2012 income of $2.5M included a one-time, "gain of about $3.8 million upon debt extinguishment".
Without this one-time gain, GERS reported a $1.3M dollar loss in 2012.(2013 included a gain of about $132,000 upon extinguishment of debt.)
Continuing on...
"Last quarter when our clients were reporting record profits and revenues GERS income went from $480,731 for the first nine months to a loss of $2,347,707 for the year. In other words, a loss of $2,828,438 for the last quarter"
I'm puzzled by this misstated and very misleading information that can NOT be found ANYWHERE in the SEC filings. It's simply a perversion of the truth, a long nosed lie.
GERS reported a $1.3M loss for the first nine months of 2013. Q413 included a one-time write off of $2.5M as well as a one-time settlement of $125K and $1.89K.($2.814M total one-time charges)
After consideration of one-time charges, GERS almost broke even, reporting a loss of just $285K in Q413.
This is a 43% reduction from the loss of $500k in Q313.
Q213 showed a loss of $700K so one can clearly see the improvement.
In the past 3 quarters, the loss shrunk from $700k to $500k to $285k.
Accounts receivables are recognized as revenue in 30 days.
Had the $1.2M in accounts receivables been recognized as revenue in the quarter, GERS would've posted a $1M profit.
If 28 licensed plants generated $4.7M in revenue/accounts receivable, then 32 plants can be expected to generate an additional $600k to $700K.
In addition, inventories will translate into equipment sales, boosting revenue.
References cited below...
"On November 11, 2013, GreenShift paid $125,000 for full settlement of Overhead Door Company, et al v. Biofuel Industries Group dba Next Diesel Biodiesel."
"The Company has agreed to pay $350,000 in full settlement and release of any obligations. The Company made payments totaling $189,583 during 2013,(During Q413) with eleven monthly remaining payments of $14,583 due through November 2014."
"Other expenses for the years ended December 31, 2013 and 2012 were about $2.0 million and $200,000, respectively. Other expenses in 2013 included a gain of about $132,000 upon extinguishment of debt which was offset by about $1.7 million in interest expense. These amounts compared to a gain of about $3.8 million upon debt extinguishment in 2012, corresponding to a reduction of about 45% as a result of our previously disclosed debt reduction efforts, which was offset by about $2.1 million in interest expense. We additionally incurred about $400,000 in legal costs relating to the execution of amended agreements with YA Global during the first quarter 2012, 90% of which were recorded as deferred financing costs and were expensed ratably on a monthly basis over the year ended December 31, 2012."
"Other expense for the nine months ended September 30, 2013 was about $1.7 million, as compared to other income of about $1.2 million from 2012. The amount for 2013 included about $1.3 million in accrued interest as compared to about $1.6 million in accrued interest expense incurred in 2012, corresponding to a reduction of about 18% as a result of previously-disclosed debt reduction efforts. Other income for 2012 also included a $3.1 million gain realized on extinguishment of debt in that same amount. We additionally incurred about $0.4 million in legal costs relating to the execution of amended agreements with YA Global during the first quarter 2012, 90% of which were recorded as deferred financing costs and were expensed ratably on a monthly basis over the remainder of 2012. Net loss for the nine months ended September 30, 2013 was about $1.3 million as compared to net income of about $3.9 million during the nine months ended September 30, 2012."
Operating expenses for the years ended December 31, 2013 and December 31, 2012 were about $11.1 million and $5.9 million, respectively. Operating expenses during 2013 included $200,000 in bad debt recoveries realized during the period, a $2.5 million loss on write-down of an investment and $4.6 million in professional fees, of which about $2.4 million was accrued and not paid during the year, as well as about $500,000 in research and development. By contrast, operating expenses during 2012 included about $750,000 in bad debt recoveries realized during the period and $2.9 million in professional fees, of which about $2.0 million was accrued and not paid during the year, as well as about $500,000 in research and development. Our increased legal costs during 2013 were incurred primarily in connection with our ongoing litigation for patent infringement and the completion of amended agreements with YA Global. We produced about a $2.3 million loss from operations during 2013 as compared to about $2.6 million in operating income in 2012.
Good Luck To All!$!$!$!$
