Totally Green Reports Third Quarter 2013 Results

Totally Green Reports Third Quarter 2013 Results
  
 

TORONTO, ON--(Marketwired - Nov 15, 2013) - Totally Green, Inc. (PINKSHEETS: TLGN) ("TG" or the "Company"), an innovator in organic food waste processing and diversion, reported results for the quarter ended September 30th, 2013.

Total revenue was $168,092 for the quarter ended September 30, 2013, compared to $45,914 for the quarter ended September 30, 2012. ORCA service fees increased from $78,902 in the second quarter of 2013 to $114,901 for the third quarter 2013.

Q3 2013 Operational Highlights Q3 2013 continued to see substantial growth activity, as we installed 10 new ORCA machines on the Service as a Solution model.

The majority of the activity and revenues to date have been generated from the Toronto area, however we continue to deploy and shift resources to better support our launch into the U.S. market and are reviewing other possible U.S. locations for expansion. Initial results continue to be positive, and we are confident that this business model will be replicable in many other markets.

Management Commentary "The results from the Quarter continue to demonstrate the effectiveness of the operating model, as we have seen, for the second straight quarter, increases of 45% over the prior Quarter in ORCA service fees," said Shawn Dym, CEO of Totally Green. "The U.S. entry will continue to contribute more significantly to new ORCA machine placements, and ultimately our revenue base, as we continue to build out our resources in the U.S. market. We continue to identify other viable U.S. markets and look to launch in additional large U.S. markets in the coming months."

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.
Consolidated statement of operations
(In US dollars)
			Three months ended September 30,						Nine months ended September 30,
			2013			2012			2013			2012
			(unaudited)			(unaudited)			(unaudited)			(unaudited)
			$			$			$			$
Sales			53,191			9,431			337,763			289,433
Service fees			114,901			5,200			248,676			7,200
Other			-			31,283			-			197,026
Gross sales			168,092			45,914			586,439			493,659
Cost of goods sold			59,213			169,100			258,042			401,889
Gross profit			108,879			(123,186	)		328,397			91,770
Operating expenses
	Selling and marketing		85,063			161,044			232,258			220,610
	General and administrative		463,795			970,161			1,280,140			1,490,672
	Amortization and depreciation		77,045			167,362			119,758			473,725
	Foreign exchange loss		6,732			6,417			224			6,417
	Interest expense		13,900			21,714			26,109			70,411
			646,535			1,326,698			1,658,489			2,261,835
Other expenses
	Write-off of prepaid marketing fees		-			1,121,910			-			1,121,910
	Impairment of intangible assets		-			554,757			-			554,757
			-			1,676,667			-			1,676,667
Net loss			(537,656	)		(3,126,551	)		(1,330,092	)		(3,846,732	)

Totally Green, Inc.
Consolidated balance sheet
(In US dollars)
				September 30,			December 31,
				2013			2012
				(unaudited)			(audited)
				$			$
Assets
Current assets
	Cash and cash equivalents			3,444,261			733,411
	Trade receivables, net			127,733			60,723
	Inventory			26,853			16,894
	Temporary investments - restricted			54,118			25,000
	Prepaid expenses and other current assets			45,904			16,166
	Other receivables			146,524			4,754
				3,845,393			856,948
Deferred commissions				86,597			-
Property and equipment				1,559,960			426,204
				5,491,950			1,283,152
Liabilities
Current liabilities
	Trade payables and other accrued liabilities			414,054			167,740
	Current portion of loans payable			139,380			-
	Deferred revenues			6,000			-
	Other liabilities			42,769			40,817
				602,203			208,557
Other liabilities				8,044			-
Loans payable				100,569			-
				710,816			208,557
Stockholders' equity
Common stock
	750,000,000 shares authorized
	20,888,523 and 13,825,727 shares issued and outstanding as at September 30, 2013 and December 31, 2012, respectively			20,888			13,825
Preferred stock
	Series C
		100,000 and 50,000 shares authorized, issued and outstanding as at September 30, 2013 and December 31, 2012, respectively		100			50
	Series E
		12,000 shares authorized, issued and outstanding as at September 30, 2013 and December 31, 2012		12			12
	Series F
		7,000 shares authorized, issued and outstanding as at September 30, 2013 and December 31, 2012		7			7
Additional paid-in capital				16,772,239			11,742,721
				16,793,246			11,756,615
Accumulated deficit				(12,012,112	)		(10,682,020	)
				4,781,134			1,074,595
				5,491,950			1,283,152

Shawn Dym Chief Executive Officer Totally Green, Inc. Tel [phone]