10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q

þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2012

or

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number: 000-54484

EUROSITE POWER INC.

(Exact Name of Registrant as Specified in its Charter)

Delaware	27-5250881
(State or Other Jurisdiction of Incorporation or Organization)	(IRS Employer Identification No.)
45 First Avenue
Waltham, Massachusetts	02451
(Address of principal Executive Offices)	(Zip Code)

Registrant’s Telephone Number, Including Area Code: (781) 522-6000

____________________________________________________________________________

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes x    No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes x    No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer o	Accelerated filer o
Non –accelerated filer o	Smaller reporting company x
(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes o No x

Title of each class	Outstanding at September 30, 2012
Common Stock, $0.001 par value	54,362,100

EUROSITE POWER INC.

QUARTERLY REPORT ON FORM 10-Q

FOR THE PERIOD ENDING SEPTEMBER 30, 2012

TABLE OF CONTENTS

PART I – FINANCIAL INFORMATION
Item 1.	Financial Statements	3
	Condensed Consolidated Balance Sheets –	3
	September 30, 2012 and December 31, 2011 (unaudited)
	Condensed Consolidated Statements of Operations –	4
	Three Months Ended September 30, 2012 and September 30, 2011 (unaudited)
	Condensed Consolidated Statements of Operations –	5
	Nine Months Ended September 30, 2012 and September 30, 2011 (unaudited)
	Condensed Consolidated Statements of Cash Flows –	6
	Nine Months Ended September 30, 2012 and September 30, 2011 (unaudited)
	Notes to Condensed Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	15
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	18
Item 4.	Controls and Procedures	18
PART II - OTHER INFORMATION
Item 1A.	Risk Factors	20
Item 6.	Exhibits	21
Signatures		22

References in this Form 10-Q to “we”, “us”, “our”, the “Company” and “EuroSite Power” refers to EuroSite Power Inc. and its consolidated subsidiaries, unless otherwise noted.

2

PART I – FINANCIAL INFORMATION

Item 1 – Financial Statements

EUROSITE POWER INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

As of September 30, 2012 and December 31, 2011 (unaudited)

	September 30, 2012			December 31, 2011
ASSETS
Current assets:
Cash and cash equivalents	$	771,087		$	2,338,783
Accounts receivable	24,457			—
Value added tax receivable	61,422			77,197
Inventory	198,439			137,976
Other current assets	24,377			19,721
Total current assets	1,079,782			2,573,677
Property, plant and equipment, net	884,871			4,576
TOTAL ASSETS	$	1,964,653		$	2,578,253
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	271,092		$	57,349
Due to related party	82,014			—
Accrued expenses and other current liabilities	36,061			48,016
Total current liabilities	389,167			105,365
Total liabilities	389,167			105,365
Stockholders’ equity:
Common stock, $0.001 par value; 100,000,000 shares authorized; 54,362,100 issued and outstanding at September 30, 2012 and December 31, 2011, respectively	54,362			54,362
Additional paid-in capital	4,213,767			3,839,753
Accumulated deficit	(2,692,643		)	(1,421,227		)
Total stockholders’ equity	1,575,486			2,472,888
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,964,653		$	2,578,253

See Notes to unaudited Condensed Consolidated Financial Statements

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EUROSITE POWER INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

For the Three Months Ended September 30, 2012 and September 30, 2011

	Three Months Ended
	September 30, 2012			September 30, 2011
	(unaudited)			(unaudited)
Revenues
Energy revenues	$	5,594		$	—
Turnkey & other revenues	18,398			—
	23,992			—
Cost of sales
Fuel, maintenance and installation	18,089			—
Depreciation expense	—			—
	18,089			—
Gross profit	5,903			—
Operating expenses
General and administrative	81,522			206,211
Selling	289,191			325,639
Engineering	21,440			—
	392,153			531,850
Loss from operations	(386,250		)	(531,850		)
Other income (expense)
Interest and other income	2,997			—
Interest expense	—			—
	2,997			—
Loss before income taxes	(383,253		)	(531,850		)
Provision for income taxes	—			—
Net loss	$	(383,253	)	$	(531,850	)
Net loss per share - basic and diluted	$	(0.01	)	$	(0.01	)
Weighted-average shares outstanding - basic and diluted	54,362,100			54,362,100

See Notes to unaudited Condensed Consolidated Financial Statements

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EUROSITE POWER INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

For the Nine Months EndedSeptember 30, 2012 and September 30, 2011

	Nine Months Ended
	September 30, 2012			September 30, 2011
	(unaudited)			(unaudited)
Revenues
Energy revenues	$	5,594		$	—
Turnkey & other revenues	45,992			—
	51,586			—
Cost of sales
Fuel, maintenance and installation	38,193			—
Depreciation expense	—			—
	38,193			—
Gross profit	13,393			—
Operating expenses
General and administrative	657,329			526,327
Selling	584,186			325,639
Engineering	55,432			—
	1,296,947			851,966
Loss from operations	(1,283,554		)	(851,966		)
Other income (expense)
Interest and other income	12,138			—
Interest expense	—			—
	12,138			—
Loss before income taxes	(1,271,416		)	(851,966		)
Provision for income taxes	—			—
Net loss	$	(1,271,416	)	$	(851,966	)
Net loss per share - basic and diluted	$	(0.02	)	$	(0.02	)
Weighted-average shares outstanding - basic and diluted	54,362,100			53,982,796

See Notes to unaudited Condensed Consolidated Financial Statements

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EUROSITE POWER INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Nine Months EndedSeptember 30, 2012 and September 30, 2011

	Nine Months Ended
	September 30, 2012			September 30, 2011
	(unaudited)			(unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(1,271,416	)	$	(851,966	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	4,261			—
Stock-based compensation	374,014			321,951
Changes in operating assets and liabilities:
(Increase) decrease in:
Accounts receivable	(24,457		)	—
Value added tax receivable	15,775			(65,270		)
Inventory	(60,463		)	(10,330		)
Prepaid and other current assets	(4,656		)	(7,667		)
Increase (decrease) in:
Accounts payable	213,743			119,040
Due to related party	82,014			(99,567		)
Accrued expenses and other current liabilities	(11,955		)	76,100
Net cash used in operating activities	(683,140		)	(517,709		)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(884,556		)	(3,952		)
Net cash used in investing activities	(884,556		)	(3,952		)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from sale of common stock, net of costs	—			1,148,401
Net cash provided by financing activities	—			1,148,401
Net (decrease) increase in cash and cash equivalents	(1,567,696		)	626,740
Cash and cash equivalents, beginning of the period	2,338,783			2,234,551
Cash and cash equivalents, end of the period	$	771,087		$	2,861,291

See Notes to unaudited Condensed Consolidated Financial Statements

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EUROSITE POWER INC.

Notes to Interim Unaudited Condensed Consolidated Financial Statements for the period ending September 30, 2012

Note 1 — Description of business and summary of significant accounting policies:

Description of Business

EuroSite Power Inc., the Company, we, our or us, distributes, owns and operates clean, on-site energy systems that produce electricity, hot water, heat and cooling in the United Kingdom and Europe. The Company’s business model is to own the equipment it installs at customers’ facilities and to sell the energy produced by these systems to the customers on a long-term contractual basis at prices guaranteed to the customer to be below conventional utility rates. The Company calls this business the EuroSite Power “On-Site Utility.”

The Company was incorporated as a Delaware corporation on July 9, 2010 as a subsidiary of American DG Energy Inc., or American DG Energy, to introduce the American DG Energy’s On-Site Utility solution into the United Kingdom and the European market.

Principles of Consolidation and Basis of Presentation

The unaudited condensed consolidated financial statements, or the Unaudited Financial Statements, presented herein have been prepared by the Company, without audit, and, in the opinion of management, reflect all adjustments (consisting of normal recurring adjustments) necessary for a fair statement of the interim periods presented. The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP, for interim financial information and pursuant to the rules and regulations of the SEC, for reporting in this Quarterly Report on Form 10-Q, or the Quarterly Report. Accordingly, certain information and footnote disclosures required for complete financial statements are not included herein. It is suggested that the Unaudited Financial Statements be read in conjunction with the consolidated financial statements and notes included in the Company’s Form 10-K for the year ended December 31, 2011. The Company’s operating results for the three and nine month period ended September 30, 2012, may not be indicative of the results expected for any succeeding interim periods or for the entire year ending December 31, 2012.     

The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary EuroSite Power Limited, a United Kingdom registered company.

On July 9, 2010, American DG Energy invested $45,000 in exchange for 45 million shares of the Company’s common stock, par value $.001 per share, or Common Stock, and obtained controlling interest in the Company. Also on July 9, 2010, Nettlestone Enterprises Limited, invested $5,000 in exchange for 5 million shares of the Company’s Common Stock. As of September 30, 2012, American DG Energy owned an 82.8% interest in the Company and consolidates the Company into its financial statements in accordance with GAAP.

The Company’s operations are comprised of one business segment. The Company’s business is to sell energy in the form of electricity, heat, hot water and cooling to its customers under long-term sales agreements.

The Company has experienced total net losses since inception of $2.7 million. For the foreseeable future, the Company expects to experience continuing operating losses and negative cash flows from operations as its management executes its current business plan. The Company believes that its existing resources, including cash and cash equivalents, future cash flow from operations, its ability to control certain costs, including those related to general and administrative expenses, and the use of capital from its parent company, will be sufficient to meet the working capital requirements of its existing business for the foreseeable future, including the next 12 months; however, as the Company continues to grow its business by adding more energy systems, the cash requirements will increase. On July 11, 2012, the Company filed a Form S-1 registration statement with the SEC to offer up to 15,000,000 shares of common stock and warrants. The common stock and the warrants will be sold in units, at a price of $1.00 per unit, with each unit consisting of one share of common stock and a warrant to purchase one share of common stock at an exercise price of $1.00 per share; however, there is no assurance that the Company will be successful in its fundraising efforts. Beyond September 30, 2013, if the Company cannot raise capital by the existing equity fundraising effort, it may need to raise additional capital through a debt financing or use capital provided by its parent to meet its operating and capital needs. There can be no assurance, however, that the Company will be successful in these fund-raising efforts or that additional funds will be available on acceptable terms, if at all.

Since its inception to September 30, 2012, the Company has raised a total of $3,511,000 through various private placements of Common Stock. If the Company is unable to raise additional capital, the Company may need to terminate

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EUROSITE POWER INC.

certain of its employees and adjust its current business plan. Financial considerations may cause the Company to modify planned deployment of new energy systems and the Company may decide to suspend installations until it is able to secure additional working capital. The Company will evaluate possible acquisitions of, or investments in, businesses, technologies and products that are complementary to its business; however, the Company is not currently engaged in such discussions.

The following significant accounting policies are either currently in effect or are anticipated to become effective as the Company commences its normal business activities.

Foreign Currency Transactions

The functional currency and the reporting currency of the Company are the U.S. dollar. Transactions denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the date of the transactions. Exchange gains or losses on transactions are included in the Condensed Consolidated Statements of Operations. 

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Revenue Recognition

Revenue from energy contracts will be recognized when electricity, heat, and chilled water is produced by the cogeneration systems on-site. The Company expects to bill each month based on various meter readings installed at each site. The amount of energy produced by on-site energy systems will be invoiced, as determined by a contractually defined formula. Under certain energy contracts, the customer will directly acquire the fuel to power the systems and will receive credit for that expense from the Company. The credit will be recorded as reduction of revenue.

As a by-product of the energy business, in some cases, the customer may choose to have the Company construct the system for them rather than have it owned by the Company. In this case, the Company will account for revenue, or turnkey revenue, and costs using the percentage-of-completion method of accounting. Under the percentage-of-completion method of accounting, revenues are recognized by applying percentages of completion to the total estimated revenues for the respective contracts. Costs will be recognized as incurred. The percentages of completion are determined by relating the actual cost of work performed to date to the current estimated total cost at completion of the respective contracts. When the estimate on a contract indicates a loss, the Company’s policy will be to record the entire expected loss, regardless of the percentage of completion. The excess of contract costs and profit recognized to date on the percentage-of-completion accounting method in excess of billings will be recorded as unbilled revenue. Billings in excess of related costs and estimated earnings will be recorded as deferred revenue.

Customers may buy out their long-term obligation under energy contracts and purchase the underlying equipment from the Company. Any resulting gain on these transactions will be recognized over the payment period in the consolidated statements of operations. Revenues from operations, including shared savings will be recorded when provided and verified. Maintenance service revenue will be recognized over the term of the agreement and will be billed on a monthly basis in arrears. The Company had no such arrangements to date.

Occasionally the Company will enter into a sales arrangement with a customer to construct and sell an energy system and provide energy and maintenance services over the term of the contract. Based on the fact that the Company will sell each deliverable to other customers on a stand-alone basis, the Company will determine that each deliverable has a stand-alone value. Additionally, there are no rights of return relative to the delivered items; therefore, each deliverable will be considered a separate unit of accounting. Revenue will be allocated to each element based upon its relative fair value which is determined based on the estimated price of the deliverables when sold on a standalone basis. Revenue related to the construction of the energy system will be recognized using the percentage-of-completion method as the unit is being constructed. Revenue from the sale of energy will be recognized when electricity, heat, and chilled water is produced by the energy system, and revenue from maintenance services is recognized over the term of the maintenance agreement. The Company had no such arrangements to date.

The Company may be able to participate in the demand response market and receive payments due to the availability of its energy systems. Demand response programs provide payments for either the reduction of electricity usage

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EUROSITE POWER INC.

or the increase in electricity production during periods of peak usage throughout a utility territory. The Company had not recognized revenue from demand response activity to date.

Other revenue represents various types of ancillary activities for which the Company expects to engage in from time to time such as the sale of equipment, construction work, engineering work and feasibility studies.

Cash and Cash Equivalents

The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents.

Concentration of Credit Risk

Financial instruments which potentially subject the Company to concentrations of credit risk consist of highly liquid cash equivalents. The Company has cash balances in certain financial institutions in amounts which occasionally exceed current federal deposit insurance limits. The financial stability of these institutions is continually reviewed by senior management. As of September 30, 2012, the Company had a balance of $771,087 in cash and cash equivalents. The Company believes it is not exposed to any significant credit risk on cash and cash equivalents.

Accounts Receivable

The Company maintains receivable balances with its customers. The Company reviews its customers’ credit history before extending credit and generally does not require collateral. An allowance for doubtful accounts is established based upon factors surrounding the credit risk of specific customers, historical trends and other information. Bad debts are written off when identified by management. At September 30, 2012, and December 31, 2011, the allowance for doubtful accounts was $0 and $0, respectively.

Inventory

Inventories are stated at the lower of cost or market, valued on a first-in, first-out basis. Inventory is reviewed periodically for slow-moving and obsolete items.

Supply Concentrations

All of the Company’s cogeneration unit purchases for the periods ending September 30, 2012 and 2011, respectively, were from one vendor (see “Note 5 - Related parties”). The Company believes there are sufficient alternative vendors available to ensure a constant supply of cogeneration units on comparable terms. However, in the event of a change in suppliers, there could be a delay in obtaining units which could result in a temporary slowdown of installing additional income producing sites. The Company believes there are sufficient alternative vendors available to ensure a constant supply of maintenance and installation services on comparable terms. However, in the event of a change of vendor, there could be a delay in installation or maintenance services.

Property Plant and Equipment

Property and equipment are stated at cost. Depreciation and amortization are computed using the straight-line method at rates sufficient to write off the cost of the applicable assets over their estimated useful lives. Repairs and maintenance are expensed as incurred.

The Company will evaluate the recoverability of its long-lived assets by comparing the net book value of the assets to the estimated future undiscounted cash flows attributable to such assets. The useful life of the Company’s energy systems will be the lesser of the economic life of the asset or the term of the underlying contract with the customer, typically 12 to 15 years. The Company will review the useful life of its energy systems on a quarterly basis or whenever events or changes in business circumstances indicate that the carrying value of the assets may not be fully recoverable or that the useful lives of the assets will no longer be appropriate. If impairment is indicated, the asset will be written down to its estimated fair value based on a discounted cash flow analysis.

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EUROSITE POWER INC.

Stock-Based Compensation

Stock-based compensation cost is measured at the grant date based on the estimated fair value of the award and is recognized as an expense in the consolidated statements of operations over the requisite service period. The fair value of stock options granted is estimated using the Black-Scholes option pricing valuation model. The Company recognizes compensation on a straight-line basis for each separately vesting portion of the option award. Use of a valuation model requires management to make certain assumptions with respect to selected model inputs. Expected volatility was calculated based on the average volatility of 5 companies in the same industry as the Company. The average expected life is estimated using the simplified method for “plain vanilla” options. The simplified method determines the expected life in years based on the vesting period and contractual terms as set forth when the award is made. The risk-free interest rate is based on United States Treasury zero-coupon issues with a remaining term which approximates the expected life assumed at the date of grant. When options are exercised the Company normally issues new shares.

See “Note 3 – Stockholders’ equity” for a summary of the stock option activity under our 2011 Stock Incentive Plan, as amended, and the UK Sub-Plan for the periods ending September 30, 2012 and 2011, respectively.

Loss per Common Share

The Company computes basic loss per share by dividing net loss for the period by the weighted-average number of shares of Common Stock outstanding during the period. The Company computes its diluted earnings per common share using the treasury stock method. For purposes of calculating diluted earnings per share, the Company considers its shares issuable in connection with stock options and warrants to be dilutive Common Stock equivalents when the exercise price is less than the average fair market value of the Company’s Common Stock for the period.

Other Comprehensive Net Loss

The comprehensive net loss for the periods ending September 30, 2012 and 2011, respectively, does not differ from the reported loss.

Income Taxes

As part of the process of preparing its consolidated financial statements, the Company is required to estimate its income taxes in each of the jurisdictions in which the Company operates. This process involves the Company estimating its actual current tax exposure together with assessing temporary differences resulting from differing treatment of items, such as depreciation and certain accrued liabilities for tax and accounting purposes. These differences result in deferred tax assets and liabilities, which are included within the Company’s consolidated balance sheets. The Company must then assess the likelihood that its deferred tax assets will be recovered from future taxable income and to the extent the Company believes that recovery is not likely, the Company must establish a valuation allowance.

The Company uses a comprehensive model for the recognition, measurement and financial statement disclosure of uncertain tax positions. Unrecognized benefits are the differences between tax positions taken, or expected to be taken in tax returns and the benefits recognized for accounting purposes.

Note 2 — Inventory:

As of September 30, 2012 and 2011, the Company had $198,439 and $137,976, respectively, in inventory which consisted of finished goods. As of September 30, 2012 and December 31, 2011, there were no reserves or write downs recorded against inventory.

Note 3 — Stockholders’ equity:

Common Stock

On July 9, 2010, American DG Energy invested $45,000 in exchange for 45 million shares of the Company’s Common Stock and obtained controlling interest in the Company. Also on July 9, 2010, Nettlestone Enterprises Limited, invested $5,000 in exchange for 5 million shares of the Company’s Common Stock. During the period from July 9, 2010 to December 31, 2010, the Company raised an additional $2,221,019 net of costs, in a private placement by selling 2,261,000 shares of Common Stock to 25 accredited investors at a price of $1.00 per share.

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EUROSITE POWER INC.

During the period from January 1, 2011 to December 31, 2011, the Company raised an additional $1,148,401 net of costs, in a private placement by issuing 1,250,000 shares of Common Stock to 4 accredited investors at a price of $1.00 per share.

On February 10, 2012, the Company announced that its Board of Directors declared a stock dividend of 10% per share on the outstanding shares of our Common Stock. The dividend was payable on March 12, 2012, to common stockholders of record at the close of business on February 24, 2012, except for shares held by American DG Energy, whose Board of Directors declined the dividend. The Company adjusted the price of its outstanding stock option awards and warrants to $0.90 per share due to the payment of the dividend. The Company retroactively applied this dividend to the December 31, 2011, financial statements. Prior to that transaction, the Company had paid no cash or stock dividends on its Common Stock. The Company currently expects to retain earnings for use in the operation and expansion of its business, and therefore does not anticipate paying any cash dividends in the foreseeable future.

The holders of Common Stock have the right to vote their interest on a per share basis. At September 30, 2012, there were 54,362,100 shares of Common Stock outstanding.

Warrants

On July 12, 2010, the Company granted to Nettlestone Enterprises Limited a special purchase right, or warrant. The warrant grants the investor the non-assignable right but not the obligation, for a period of two years from July 12, 2010, to purchase 400,000 shares of the Common Stock at a per share purchase price of $1.00. On March 12, 2012, in connection with the 10% stock dividend declared on the Company’s common stock, the per share purchase price of the warrant was adjusted to $0.90. The fair value of the warrants granted was estimated using the Black-Scholes option pricing valuation model and the value of the warrant was recorded in stockholder’s equity in additional paid-in capital and as a cost of the financing as a deduction to the proceeds raised. Those warrants expired unexercised on July 12, 2012.

Stock-Based Compensation

In January 2011, the Company adopted the 2011 Stock Incentive Plan, or the Plan, under which the Board of Directors may grant up to 3,000,000 shares of incentive or non-qualified stock options and stock grants to key employees, directors, advisors and consultants of the Company. On June 13, 2011, the Board of Directors unanimously amended the Plan, to increase the reserved shares of Common Stock issuable under the Plan from 3,000,000 to 4,500,000, or the Amended Plan.

Stock options vest based upon the terms within the individual option grants, usually over a four year period with an acceleration of the unvested portion of such options upon a liquidity event, as defined in the Company’s stock option agreement. The options are not transferable except by will or domestic relations order. The option price per share under the Amended Plan is not less than the fair value of the shares on the date of the grant. The number of securities remaining available for future issuance under the Amended Plan was 910,000 at September 30, 2012.

On January 15, 2011, the Company granted nonqualified options to purchase 2,100,000 shares of Common Stock to five employees and two directors at a purchase price of $1.00 per share. Those options have a vesting schedule of four years and expire in ten years. The assumptions used in the Black-Scholes option pricing model include an expected life of 6.25 years, a risk-free interest rate of 2.7% and an expected volatility of 32.8%. The fair value of the options issued was $790,908, with a grant date fair value of $0.38 per option.

On June 13, 2011, the Company granted nonqualified options to purchase 300,000 shares of Common Stock to three directors at a purchase price of $1.00 per share. Those options have a vesting schedule of four years and expire in ten years. The assumptions used in the Black-Scholes option pricing model include an expected life of 6.25 years, a risk-free interest rate of 2.3% and an expected volatility of 32.4%. The fair value of the options issued was $109,304, with a grant date fair value of $0.36 per option.

On November 3, 2011, the Company granted its managing director options to purchase 900,000 shares of common stock at purchase price of $1.00 per share and granted to the three members of its advisory board options to purchase 300,000 shares of common stock at purchase price of $1.00 per share. Those options have a vesting schedule of four years and expire in ten years and were made under the UK Sub-Plan to the Company’s 2011 Stock Incentive Plan. The assumptions used in the Black-Scholes option pricing model include an expected life of 6.25 years, a risk-free interest rate of 1.5% and an expected volatility of 33.1%. The fair value of the options issued was $423,400, with a grant date fair value of $0.35 per option.

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EUROSITE POWER INC.

On March 12, 2012, in connection with the 10% stock dividend declared on the Company’s common stock, all outstanding stock option awards were modified in order to adjust the exercise price to $0.90. Based on the change in fair value of the modified awards, the Company will recognize incremental compensation cost of $111,482 over the remaining vesting terms of the outstanding options.

During the nine month period ending September 30, 2012, the Company had 3,590,000 options outstanding and recognized employee non-cash compensation expense of $374,014 related to the issuance of those stock options. At September 30, 2012, the total compensation cost related to unvested stock option awards not yet recognized was $585,171. This amount will be recognized over the weighted average period of 2.64 years.

Stock option activity as of and for the nine month period ending September 30, 2012 was as follows:

Common Stock Options	Number of Options		Exercise Price Per Share		Weighted Average Exercise Price		Weighted Average Remaining Life	Aggregate Intrinsic Value
Outstanding, December 31, 2011	3,600,000		$	0.90	$	0.90	9.34 years	—
Granted	—		—		—
Exercised	—		—		—
Canceled	(10,000	)	0.90		0.90
Expired	—		—		—
Outstanding, September 30, 2012	3,590,000		$	0.90	$	0.90	8.59 years	$	11,129,000
Exercisable, September 30, 2012	597,500				$	0.90		$	1,852,250
Vested and expected to vest, September 30, 2012	3,590,000				$	0.90		$	11,129,000

The aggregate intrinsic value of options outstanding as of September 30, 2012, is calculated as the difference between the exercise price of the underlying options and the price of the Company’s Common Stock for options that were in-the-money as of that date. Options that were not in-the-money as of that date, and therefore have a negative intrinsic value, have been excluded from this amount. At September 30, 2012 there were 2,992,500 unvested stock options outstanding with a vesting schedule of 25% per year and expiration in ten years.

Note 4 — Earnings per share:

Basic and diluted earnings per share for the three and nine month periods ended September 30, 2012 and 2011, respectively was as follows:

	Three Months						Nine Months
	September 30, 2012			September 30, 2011			September 30, 2012			September 30, 2011
Earnings per share
Loss available to stockholders	$	(383,253	)	$	(531,850	)	$	(1,271,416	)	$	(851,966	)
Weighted average shares outstanding - Basic and diluted	54,362,100			54,362,100			54,362,100			53,982,796
Basic and diluted loss per share	$	(0.01	)	$	(0.01	)	$	(0.02	)	$	(0.02	)
Anti-dilutive shares underlying warrants outstanding	—			400,000			—			400,000
Anti-dilutive shares underlying stock options outstanding	3,590,000			2,400,000			3,590,000			2,400,000

Note 5 — Related parties:

The Company expects to purchase the majority of its energy equipment from American DG Energy, its parent. American DG Energy owns an 82.8% of the Common Stock of the Company. American DG Energy purchases energy equipment primarily from Tecogen, an affiliate of the Company, which manufactures natural gas, engine-driven commercial and industrial cooling and cogeneration systems, and from Ilios Inc., or Ilios, a majority owned subsidiary of Tecogen which

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EUROSITE POWER INC.

is developing a line of ultra-high-efficiency heating products, such as a high efficiency water heater, that provides twice the efficiency of conventional boilers, based on management estimates, for commercial and industrial applications utilizing advanced thermodynamic principles.

American DG Energy, GlenRose Instruments Inc., or GlenRose Instruments, Tecogen Inc., or Tecogen, and Ilios Inc., or Ilios, are affiliated companies by virtue of common ownership. Specifically, John N. Hatsopoulos who is the Chairman of the Company is: (a) the Chief Executive Officer and director of American DG Energy and holds 11.9% of the company’s common stock, (b) the Chief Executive Officer and director of Tecogen and holds 27.4% of the company’s common stock, (c) a director of Ilios and holds 7.3% of the company’s common stock, and (d) the Chairman of GlenRose Instruments and holds 15.7% of the company’s common stock. Dr. George N. Hatsopoulos, who is John N. Hatsopoulos’ brother, is: (a) a director of American DG Energy and holds 14.5% of the company’s common stock, (b) a director of Tecogen and holds 26.0% of the company’s common stock, (c) an investor in Ilios and holds 2.9% of the company’s common stock and (d) an investor of GlenRose Instruments and holds 15.7% of the company’s common stock.

American DG Energy signed a Facilities and Support Services Agreement with Tecogen on July 1, 2012. The term of the agreement commences as of the start of each year and certain portions of the agreement, including office space allocation, get renewed annually upon mutual written agreement.

On October 20, 2009, American DG Energy, in the ordinary course of its business, signed a Sales Representative Agreement with Ilios to promote, sell and service the Ilios high-efficiency heating products, such as the high efficiency water heater, in the marketing territory of the New England states, including Connecticut, Rhode Island, Massachusetts, New Hampshire, Vermont, and Maine. The marketing territory also includes all of the nations in the European Union. The initial term of this Agreement is for five years, after which it may be renewed for successive one-year terms upon mutual written agreement.

The Company purchases energy systems from American DG Energy and ships them to the United Kingdom. At September 30, 2012 and December 31, 2011, the Company had an inventory balance of $198,439 and $137,976, respectively, consisting of energy systems purchased from American DG Energy.

On February 22, 2011, John N. Hatsopoulos, the Company’s Chairman of the Board, purchased 25,000 shares of the Company’s Common Stock from an accredited investor at a price of $1.00 per share and George N. Hatsopoulos purchased 25,000 shares of the Company’s Common Stock from the same accredited investor at a price of $1.00 per share.

John N. Hatsopoulos is the Company’s Chairman of the Board and is also the Chief Executive Officer of American DG Energy and Tecogen, and the Chairman of GlenRose Instruments. His salary is $1.00 per year. On average, Mr. Hatsopoulos spends approximately 20% of his business time on the affairs of the Company, but such amount varies widely depending on the needs of the business and is expected to increase as the business of the Company develops.

Barry J. Sanders, the Company’s Chief Executive Officer, is also the President and Chief Operating Officer of American DG Energy and devotes part of his business time to the affairs of American DG Energy. His salary is paid by American DG Energy but a portion is reimbursed by the Company according to the requirements of the business in a given week at a fully burdened hourly rate of $119. On average, Mr. Sanders spends approximately 25% of his business time on the affairs of the Company, but such amount varies widely depending on the needs of the business and is expected to increase as the business of the Company develops.

Anthony S. Loumidis, the Company’s Chief Financial Officer, devotes part of his business time to the affairs of American DG Energy, GlenRose Instruments, Tecogen and Ilios. His salary is paid by American DG Energy but a portion is reimbursed by GlenRose Instruments and by the Company according to the requirements of the business in a given week at a fully burdened hourly rate of $108. On average, Mr. Loumidis spends approximately 15% of his business time on the affairs of the Company, but such amount varies widely depending on the needs of the business and is expected to increase as the business of the Company develops.

The Company’s headquarters are located in Waltham, Massachusetts and consist of 3,071 square feet of office and storage space that are leased from Tecogen and shared with American DG Energy. The lease expires on March 31, 2014. American DG Energy is currently charging the Company for utilizing its share of office space in the United States through an intercompany service charge. The Company also occupies a small office space in the United Kingdom. The Company believes that its facilities are appropriate and adequate for its current needs.

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EUROSITE POWER INC.

Note 6 — Fair value measurements:

The fair value topic of the FASB Accounting Standards Codification defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The accounting guidance also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs, where available, and minimize the use of unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value:

Level 1 — Quoted prices in active markets for identical assets or liabilities that the entity has the ability to access at the measurement date. The Company currently does not have any Level 1 financial assets or liabilities.

Level 2 — Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. The Company currently does not have any Level 2 financial assets or liabilities.

Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Company currently does not have any Level 3 financial assets or liabilities.

At September 30, 2012, the Company has no financial instruments that are required to be recorded at fair value on a recurring basis. The Company’s financial instruments include cash and cash equivalents and accounts payable whose recorded values approximate fair value based on their short term nature.

Note 7— Subsequent events:

The company has evaluated subsequent events through the date of this filing and determined that no subsequent events occurred that would require recognition in the consolidated financial statements or disclosure in the notes thereto.

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EUROSITE POWER INC.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward-looking statements are made throughout this Management’s Discussion and Analysis of Financial Condition and Results of Operations. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, the words “believes,” “anticipates,” “plans,” “expects,” “seeks,” “estimates” and similar expressions are intended to identify forward-looking statements. Such forward-looking statements include, among other things, statements regarding our current and future cash requirements, our expectations regarding suppliers of cogeneration units, and statements regarding potential financing activities in the future. While the Company may elect to update forward-looking statements in the future, it specifically disclaims any obligation to do so, even if the Company’s estimates change and readers should not rely on those forward-looking statements as representing the Company’s views as of any date subsequent to the date of the filing of this Quarterly Report. There are a number of important factors that could cause the actual results of the Company to differ materially from those indicated by such forward-looking statements, including those detailed under the heading “Risk Factors” in this Quarterly Report.

The Company distributes, owns and operates clean, on-site energy systems that produce electricity, hot water, heat and cooling in the United Kingdom and Europe. The Company’s business model is to own the equipment it installs at customers’ facilities and to sell the energy produced by these systems to the customers on a long-term contractual basis at prices guaranteed to the customer to be below conventional utility rates. The Company calls this business the EuroSite Power “On-Site Utility”.

Third Quarter 2012 Compared to Third Quarter 2011

Revenues

Revenues in the third quarter of 2012 were $23,992 compared to $0 for the same period in 2011. The revenues during the quarter included energy revenues and revenues from the performance of billable services related to construction and engineering for a site.

Since the beginning of the year, the Company announced that it has reached agreements to supply clean energy to Haverhill Leisure Centre in Suffolk, to five landmark hotels owned by The Ability Group and managed by Hilton Worldwide, to three Cedar Court Hotel Huddersfield in Yorkshire, to the Wentworth Club and to four Roko Health Clubs.

Cost of Sales

Cost of sales in the third quarter of 2012 was $18,089 compared to $0 for the same period in 2011.

Operating Expenses

General and administrative expenses were $81,522 in the third quarter of 2012, compared to $206,211 for the same period in 2011, a decrease of $124,689 or 60.5%. The general and administrative expenses included legal fees, accounting and audit fees and non-cash compensation expense related to the issuance of option awards to our employees and directors.

Selling expenses were $289,191 in the third quarter of 2012, compared to $325,639 for the same period in 2011, a decrease of $36,448. The decrease in selling expenses was due to lower professional services fees.

Engineering expenses were $21,440 in the third quarter of 2012, compared to $0 for the same period in 2011 due to the addition of a new employee.

Other Income

Other income was $2,997 in the third quarter of 2012, compared to $0 for the same period in 2011, due to interest on our cash balance.

Net Loss

Net loss was $383,253 in the third quarter of 2012, compared to net loss of $531,850 for the same period in 2011.

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EUROSITE POWER INC.

First Nine Months of 2012 Compared to First Nine Months of 2011

Revenues

Revenues in the first nine months of 2012 were $51,586 compared to $0 for the same period in 2011. The revenues during the quarter included energy revenues and revenues from the performance of billable services related to construction and engineering for a site.

Since the beginning of the year, the Company announced that it has reached agreements to supply clean energy to Haverhill Leisure Centre in Suffolk, to five landmark hotels owned by The Ability Group and managed by Hilton Worldwide, to three Cedar Court Hotel Huddersfield in Yorkshire, to the Wentworth Club and to four Roko Health Clubs.

Cost of Sales

Cost of sales in the first nine months of 2012 was $38,193 compared to $0 for the same period in 2011.

Operating Expenses

General and administrative expenses were $657,329 in the first nine months of 2012, compared to $526,327 for the same period in 2011, an increase of $131,002 or 24.9%. The general and administrative expenses increased due to additional legal, accounting and audit fees and non-cash compensation expense related to the issuance of option awards to our employees and directors.

Selling expenses were $584,186 in the first nine months of 2012, compared to $325,639 for the same period in 2011, an increase of $258,547 or 79.4%. Selling expenses increased due to the addition of two new employees, increase in professional fees and services and commissions on new projects and non-cash compensation expense related to the issuance of option awards to our employees.

Engineering expenses were $55,432 in the first nine months of 2012, compared to $0 for the same period in 2011. Engineering expenses increase due to the addition of a new employee.

Other Income

Other income was $12,138 in the first nine months of 2012, compared to $0 for the same period in 2011, due to interest on our cash balance.

Net Loss

Net loss was $1,271,416 in the first nine months of 2012, compared to net loss of $851,966 for the same period in 2011.

Liquidity and Capital Resources

Consolidated working capital was $690,615 as of September 30, 2012, compared to $2,468,312 at December 31, 2011. Included in working capital were cash and cash equivalents of $771,087 as of September 30, 2012, compared to $2,338,783 at December 31, 2011. The decrease in working capital was a result of cash used to fund installations and business development for new energy projects.

Cash used in operating activities was $683,140 in the first nine months of 2012, compared to cash used of $517,709 for the same period in 2011. Our inventory balance increased to $198,439 in the first nine months of 2012, compared to $137,976 at December 31, 2011, resulting in a decrease of cash of $60,463 due to the purchase of energy systems from American DG Energy for the United Kingdom. Our value added tax receivable decreased to $61,422 in the first nine months of 2012, compared to $77,197 at December 31, 2011, resulting in an increase of cash of $15,775 due to the receipt of duties and taxes related to the shipment of energy systems to the United Kingdom. Our other current assets increased to $24,377 in the first nine months of 2012, compared to $19,721 at December 31, 2011, resulting in a decrease of cash of $4,656.

Accounts payable balance increased to $271,092 in the first nine months of 2012, compared to $57,349 at December 31, 2011, resulting in an increase of cash of $213,743 due to the timing related to the purchase of energy systems.

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Our accrued expense and other current liabilities decreased to $36,061 in the first nine months of 2012, compared to $48,016 at December 31, 2011, resulting in a decrease of cash of $11,955.

The primary investing activities of the Company’s operations included the purchase of equipment. In the first nine months of 2012, the Company used $884,556 for purchases of equipment.

The Company owns the energy-producing equipment at the customer’s site; therefore, the business is capital intensive. The Company believes that its existing resources, including cash and cash equivalents, future cash flow from operations, its ability to control certain costs, including those related to general and administrative expenses, and the use of capital from its parent company, will be sufficient to meet the working capital requirements of its existing business for the foreseeable future, including the next 12 months; however, as the Company continues to grow its business by adding more energy systems, the cash requirements will increase. On July 11, 2012, the Company filed a Form S-1 registration statement with the SEC to offer up to 15,000,000 shares of common stock and warrants. The common stock and the warrants will be sold in units, at a price of $1.00 per unit, with each unit consisting of one share of common stock and a warrant to purchase one share of common stock at an exercise price of $1.00 per share; however, there is no assurance that the Company will be successful in its fundraising efforts. Beyond September 30, 2013, if the Company cannot raise capital by the existing equity fundraising effort, it may need to raise additional capital through a debt financing or use capital provided by its parent to meet its operating and capital needs. There can be no assurance, however, that the Company will be successful in these fund-raising efforts or that additional funds will be available on acceptable terms, if at all

Our ability to continue to access capital could be impacted by various factors including general market conditions and the continuing slowdown in the economy, interest rates, the perception of our potential future earnings and cash distributions, any unwillingness on the part of lenders to make loans to us and any deterioration in the financial position of lenders that might make them unable to meet their obligations to us. If these conditions continue and we cannot raise funds through a public or private debt financing, or an equity offering, our ability to grow our business may be negatively affected and the Company may need to suspend any new installation of energy systems and significantly reduce its operating costs until market conditions improve.

Significant Accounting Policies and Critical Estimates

The Company’s significant accounting policies are discussed in the Notes to the Consolidated Financial Statements above and are those that are incorporated in the Company’s Annual Report on Form 10-K filed with the SEC. The accounting policies and estimates that can have a significant impact upon the operating results, financial position and footnote disclosures of the Company are described in the above notes and “Note 2—Summary of significant accounting policies” to the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K filed with the SEC.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements, including any outstanding derivative financial statements, off-balance sheet guarantees, interest rate swap transactions or foreign currency contracts. We do not engage in trading activities involving non-exchange traded contracts.

Emerging Growth Company

Section 107 of the JOBS Act provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. However, we chose to “opt out” of any extended transition period, and as a result we will comply with new or revised accounting standards on the relevant dates on which adoption of such standards is required for non-emerging growth companies. Section 107 of the JOBS Act provides that our decision to opt out of the extended transition period for complying with new or revised accounting standards is irrevocable.

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Item 3. Quantitative and Qualitative Disclosures about Market Risk

Not applicable

Item 4. Controls and Procedures

Management’s evaluation of disclosure controls and procedures:

Our disclosure controls and procedures are designed to provide reasonable assurance that the control system’s objectives will be met. Our management, including our Chief Executive Officer and Chief Financial Officer, after evaluating the effectiveness of our disclosure controls and procedures as of September 30, 2012, or the Evaluation Date, have concluded that as of the Evaluation Date, our disclosure controls and procedures were not effective due to material weaknesses in financial reporting relating to lack of personnel with a sufficient level of accounting knowledge and a small number of employees dealing with general controls over information technology. At the present time, our management has decided that, considering the employees involved and the control procedures in place, there are risks associated with the above, but the potential benefits of adding additional employees to mitigate these weaknesses do not justify the expenses associated with such increases. Management will continue to evaluate the above weaknesses, and as the Company grows and resources become available, the Company plans to take the necessary steps in the future to remediate the weaknesses.

For these purposes, the term disclosure controls and procedures of an issuer means controls and other procedures of an issuer that are designed to ensure that information required to be disclosed by the issuer in the reports that it files or submits under the Exchange Act, is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

Changes in Internal Control over Financial Reporting:

In connection with the evaluation referred to in the foregoing paragraph, we will make changes in our internal controls over financial reporting as soon as the resources become available. As of September 30, 2012, no changes have been made to the Company’s process.

Report of Management on Internal Control over Financial Reporting:

The management of the Company is responsible for establishing and maintaining adequate internal control over financial reporting in accordance with the Exchange Act. Management, including our Chief Executive Officer and Chief Financial Officer, conducted an evaluation of our internal control over financial reporting based on the framework and criteria established in Internal Control—Integrated Framework, issued by the Committee of Sponsoring Organizations of the Treadway Commission. This evaluation included review of the documentation of controls, evaluation of the design effectiveness of controls, testing of the operating effectiveness of controls and a conclusion of this evaluation. Based on this evaluation, management concluded that the Company’s internal control over financial reporting was not effective as of September 30, 2012.

As of September 30, 2012, we had twelve employees, including four full time employees and one part time employee in the United Kingdom and seven part time employees in the United States. The Company currently does not have personnel with a sufficient level of accounting knowledge, experience and training in the selection, application and implementation of generally accepted accounting principles as it relates to complex transactions and financial reporting requirements. The Company also has a small number of employees dealing with general controls over information technology security and user access. This constitutes a material weakness in financial reporting. At this time, management has decided that considering the employees involved and the control procedures in place, there are risks associated with the above, but the potential benefits of adding additional employees to mitigate these weaknesses, does not justify the expenses associated with such increases. Management will continue to evaluate the above weaknesses, and as the Company grows and resources become available, the Company plans to take the necessary steps in the future to remediate the weaknesses.

Our management, including our Chief Executive Officer and Chief Financial Officer, does not expect that our disclosure controls or our internal control over financial reporting to prevent or detect all error and all fraud. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control system’s objectives will be met. The design of a control system must reflect the fact that there are resource constraints, and

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the benefits of controls must be considered relative to their costs. Further, because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud, if any, within the Company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple error or mistake. Controls can also be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the controls. The design of any system of controls is based in part on certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Projections of any evaluation of controls effectiveness to future periods are subject to risks. Over time, controls may become inadequate because of changes in conditions or deterioration in the degree of compliance with policies or procedures.

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EUROSITE POWER INC.

PART II – OTHER INFORMATION

Item 1A. Risk Factors

In addition to the other information set forth in this report, you should carefully consider the factors discussed under “Risk Factors” in our Annual Report on Form 10-K for our fiscal year ended December 31, 2011. The risks discussed in our Annual Report on Form 10-K could materially affect our business, financial condition and future results. The risks described in our Annual Report on Form 10-K are not the only risks facing us. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially and adversely affect our business, financial condition or operating results.

The recently enacted JOBS Act will allow us to postpone the date by which we must comply with certain laws and regulations and to reduce the amount of information provided in reports filed with the SEC. We cannot be certain if the reduced disclosure requirements applicable to emerging growth companies will make our common stock less attractive to investors.

We are and we will remain an “emerging growth company”, as defined in the Jumpstart Our Business Startups Act of 2012, or the JOBS Act, until the earliest to occur of (i) the last day of the fiscal year during which our total annual gross revenues equal or exceed $1 billion (subject to adjustment for inflation), (ii) the last day of the fiscal year following the fifth anniversary of our initial public offering, (iii) the date on which we have, during the previous three-year period, issued more than $1 billion in non-convertible debt, or (iv) the date on which we are deemed a large accelerated filer under the Securities Exchange Act of 1934, as amended.

For so long as we remain an emerging growth company as we will not be required to:

• have an auditor report on our internal controls over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act;

• comply with any requirement that may be adopted by the Public Company Accounting Oversight Board regarding mandatory audit firm rotation or a supplement to the auditor’s report providing additional information about the audit and the financial statements (i.e., an auditor discussion and analysis);

• submit certain executive compensation matters to shareholder non-binding advisory votes;

• submit for shareholder approval golden parachute payments not previously approved; and

• disclose certain executive compensation related items such as the correlation between executive compensation and financial performance and comparisons of the Chief Executive Officer’s compensation to median employee compensation, when such disclosure requirements are adopted.

In addition, Section 107 of the JOBS Act also provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act of 1933, as amended, or the Securities Act, for complying with new or revised accounting standards. An emerging growth company can therefore delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. However, we chose to “opt out” of such extended transition period, and as a result, we will comply with new or revised accounting standards on the relevant dates on which adoption of such standards is required for non-emerging growth companies. Section 107 of the JOBS Act provides that our decision to opt out of the extended transition period for complying with new or revised accounting standards is irrevocable.

We cannot predict if investors will find our common stock less attractive because we may rely on some of these exemptions. If some investors find our common stock less attractive as a result, there may be a less active trading market for our common stock and our stock price may be more volatile. If we avail ourselves of certain exemptions from various reporting requirements, our reduced disclosure may make it more difficult for investors and securities analysts to evaluate us and may result in less investor confidence.

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EUROSITE POWER INC.

Item 6. Exhibits

Exhibit
Number		Description of Exhibit
10.1		Placement Agency Agreement, as amended and restated on October 12, 2012, between the Company and Scarsdale Equities LLC (incorporated by reference to Exhibit 10.9 to the Company’s Registration Statement on Form S-1 (No. 333-182620) filed with the SEC on October 17, 2012).
10.2*		Placement Agency Agreement, as amended and restated on November 12, 2012, between the Company and Scarsdale Equities LLC
31.1*	–	Rule 13a-14(a) Certification of Chief Executive Officer
31.2*	–	Rule 13a-14(a) Certification of Chief Financial Officer
32.1**	–	Section 1350 Certifications of Chief Executive Officer and Chief Financial Officer
101.INS**	–	XBRL Instance Document
101.SCH**	–	XBRL Taxonomy Extension Schema
101.CAL**	–	XBRL Taxonomy Extension Calculation Linkbase
101.DEF**	–	XBRL Taxonomy Extension Definition Linkbase
101.LAB**	–	XBRL Taxonomy Extension Label Linkbase
101.PRE**	–	XBRL Taxonomy Extension Presentation Linkbase

* Filed herewith

** Furnished herewith

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EUROSITE POWER INC.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, on November 14, 2012.

EUROSITE POWER INC.

(Registrant)

By: /s/ BARRY J. SANDERS

Chief Executive Officer

(Principal Executive Officer)

By: /s/ ANTHONY S. LOUMIDIS

Chief Financial Officer

(Principal Financial Officer)

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EX-31.1

EXHIBIT 31.1

EUROSITE POWER INC.

CERTIFICATION REQUIRED BY EXCHANGE ACT RULES 13a-14(a) and 15d-14(a),

AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Barry J. Sanders, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of EuroSite Power Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 14, 2012

/s/ Barry J. Sanders

Chief Executive Officer

EX-31.2

EXHIBIT 31.2

EUROSITE POWER INC.

CERTIFICATION REQUIRED BY EXCHANGE ACT RULES 13a-14(a) and 15d-14(a),

AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Anthony S. Loumidis, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of EuroSite Power Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 14, 2012

/s/ Anthony S. Loumidis

Chief Financial Officer

EX-32.1

EXHIBIT 32.1

EUROSITE POWER INC.

CERTIFICATION REQUIRED BY EXCHANGE ACT RULES 13a-14(b) and 15d-14(b),

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

We, Barry J. Sanders, Chief Executive Officer, and Anthony S. Loumidis, Chief Financial Officer, of EuroSite Power Inc., or the Company, certify, pursuant to Section 1350, Chapter 63 of Title 18, United States Code, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Quarterly Report on Form 10-Q of the Company for the quarter ended September 30, 2012 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78 m or 78o(d)); and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	November 14, 2012
/s/ Barry J. Sanders
Chief Executive Officer
/s/ Anthony S. Loumidis
Chief Financial Officer

EX-10.2

EXHIBIT 10.2

SCARSDALE EQUITIES LLC

Amended and Restated Placement Agency Agreement

November 12, 2012

Mr. Barry Sanders

Chief Executive Officer

EuroSite Power Inc.

45 First Avenue

Waltham, Massachusetts 02451

Dear Mr. Sanders:

This letter agreement (the “Agreement”) amends and restates the letter agreement entered into by and between Scarsdale Equities LLC (“Scarsdale”) and EuroSite Power Inc. (the “Company”), dated as of October 12, 2012, and confirms the engagement of Scarsdale to serve as a non-exclusive advisor for the Company until January 31, 2013, for the purpose of advising and assisting the Company on introductions to potential investors in the securities of the Company.

This Agreement is based upon the following terms and conditions:

1. Responsibilities. The responsibilities of Scarsdale shall be the following:

(a) Assist and advise the Company with respect to the appropriate corporate, management and capital structures to facilitate successful placements of Company securities;

(b) Advise the Company with respect to suitable pricing, timing and deal size for any offerings, taking into consideration valuation recommendations provided by the Company;

(c) Use its best efforts to arrange for purchase, by institutional and retail investors as appropriate, of the securities in any offering;

(d) If desired by the Company or if required by US securities regulations, arrange for the opening, management and maintenance of an escrow account, into which the funds received for the purchase of Company securities will be deposited prior to closing;

(e) Provide such other financial and advisory services as the Company and Scarsdale agree are appropriate under the circumstances;

(f) Comply, ensure that all Scarsdale persons comply, and use commercially reasonable efforts to ensure that other brokers, if engaged by Scarsdale, comply with all applicable laws, regulations and conduct standards.

1. Compensation and Fees. The Company shall pay to Scarsdale and to any other financial institution designated by it as co-manager the following total compensation with respect to funds raised from investors introduced by Scarsdale:

(a) No retainer shall be due.

(b) Cash equal to six and one half percent (6.5%) of the total amount of capital received by the Company at the time the transaction closes, to be allocated between Scarsdale and the designated co-manager.

(c) Warrants to purchase shares of the Company's common stock issued in any placement of equity securities. The number of warrants to be issued shall equal six and one half percent (6.5%) of the number of shares of the Company's capital stock purchased by the Investors introduced by Scarsdale in any equity financing. The warrant will be exercisable at a price per share of common stock pari passu with the price per share paid by Investors, adjusted for any conversions, stock splits, or other adjustments, to be allocated between Scarsdale and the designated co-manager.

(d) Warrants will be entitled to piggy-back registration rights and shall be exercisable for one year from the closing date of the offerings contemplated by this Agreement.

3. Expenses. The Company agrees to reimburse Scarsdale's out-of-pocket expenses related to its performance of its duties under this Agreement up to $50,000. Scarsdale agrees to request the Company's pre-approval of individual expense items in excess of $5,000.

4. Use of Additional Broker-Dealers. In performing its responsibilities, Scarsdale may utilize the services of other broker-dealers, provided that such broker-dealers are registered as a “broker-dealer” under US federal and state securities laws and any other applicable laws promulgated by the Financial Industry Regulatory Authority and similarly situated governing bodies.

So as to facilitate the Company's timely filings of US Securities and Exchange Commission's Form D if required, Scarsdale will provide the Company a listing of any and all other broker-dealers, if any, who solicited investors in connection with offerings, and the states in which investors were solicited, immediately after completion. The parties acknowledge that Scarsdale shall use commercially reasonable efforts to ensure that any such broker-dealers comply with all applicable laws and the terms of any agreement between Scarsdale and the Company. The parties agree that Scarsdale shall be responsible for payment of any compensation to any such entities and that the Company will not be responsible for compensating these entities or reimburse any expenses incurred by them in connection with the performance of such duties.

5. Access to Information and Accuracy of Information. The Company shall use its commercially reasonable efforts to provide Scarsdale with all information reasonably requested and available that may be requested by Scarsdale from time to time, and access to its senior management, auditors, legal counsel and consultants as may reasonably be necessary, in carrying out its responsibilities. Scarsdale will rely on information prepared or supplied by the Company. Scarsdale will consult with the Company in planning security offerings and will review with the Company and its counsel the final revisions of any offering documents and/or prospectuses (“Placement Documents”). All documents to be used in placements shall be reviewed by Scarsdale prior to use by the Company in making offers or sales. The Company will have primary responsibility for the preparation and contents of Placement Documents provided, however, Scarsdale is responsible for furnishing information relating to Scarsdale expressly for use in the Placement Documents and for advising the Company of any changes to the accuracy or completeness of that information. The Company will also be responsible for updating and supplementing the Placement Documents prior to closing(s) as required.

6. Term and Non-Exclusivity. The engagement hereunder shall terminate on January 31, 2013, and the company may engage additional firms during the term if it desires.

7. Underwrite Status. Scarsdale acknowledges and agrees that it shall be named as an underwriter in the Company's Registration Statement on Form S-1 (No. 333-182620), as shall be amended from time to time (the “Registration Statement”). Scarsdale acknowledges that it is (i) deemed to be an underwriter within the meaning of Section 2(a)(11) of the Securities Act of 1933, as amended, (the “Securities Act”) and any commissions received by it and any profit realized on the sale of the securities by them while acting as principal are deemed to be underwriting discounts or commissions under the Securities Act and (ii) is required to comply with the requirements of the Securities Act and the Securities Exchange Act of 1934, as amended, (the “Exchange Act”), including, without limitation, Rule 10b-5 and Regulation M under the Exchange Act.

8. No Guarantee. Scarsdale has agreed to perform the services hereunder on a “best efforts” basis, and does not make any guarantee as to the successful completion of offerings unless a definitive underwriting agreement between the Company and Scarsdale is executed as described above.

9. Representations, Warranties and Covenants of the Company. The Company represents, warrants, and covenants as follows:

(a) As of the date hereof, EuroSite Power Inc. is duly organized and validly existing as a domestic corporation and has all requisite authority to own its property and conduct its business as currently conducted, to offer securities in the US markets in the manner described in (b) immediately below and enter into this Agreement.

(b) Any securities offered and sold by the Company in the US, pursuant to the Registration Statement, may or may not rely upon an exemption from registration under the Securities Act and are subject to compliance with all US securities laws and regulations. The Company will file appropriate notices with all applicable securities authorities.

(c) Any Placement Documents employed will disclose all material information required to be disclosed to investors under applicable securities laws and will not contain any untrue statement of a material fact or omit to state a material fact required to be stated or necessary to make any statements therein not misleading; provided, however, that these representations and warranties do not extend to written material furnished to the Company by Scarsdale relating to Scarsdale expressly for use in Placement Documents. Except as may be disclosed in Placement Documents, there are no obligations or liabilities, contingent or otherwise, that would be reasonably likely to result in any claims against the Company except for those in the ordinary course of business or that would not be reasonably likely to have a material adverse effect on the Company.

(d) The Company will not offer for sale or sell any additional securities unless, in the opinion of the Company's counsel, such offer or sale does not violate the registration and qualification requirements under applicable securities laws in regard to offerings covered by this Agreement.

(e) The execution, delivery and performance of this Agreement will not violate any provision of the organizational documents of the Company or any agreement or other instrument to which the Company is a party or by which it is bound. Any necessary approvals, governmental and/or private, will be obtained by the Company prior to any closing.

10. Covenants by Scarsdale and the Company. Scarsdale will maintain and supply to the Company from time to time a list of the potential investors, including addresses of such potential investors, for Company approval (a) that held a discussion with Scarsdale or the Company regarding the Company and offerings, or (b) who have invested in the Company's securities (collectively, the “Potential Investors”). If within twelve months from the expiration of this Agreement, the Company accepts investments, whether equity or otherwise, from any of the Potential Investors that Scarsdale so introduced to the Company, and provided that such investors were first introduced by Scarsdale and were not previously known to the Company, the Company will pay Scarsdale the Fee described in Clause 2(b). The terms in this paragraph do not apply to future equity offerings (including rights offerings) of the Company unless mutually agreed upon in a subsequent agreement.

11. Publicity. The Company will agree, if requested by Scarsdale, to include a reference to Scarsdale in any press release or other public communication issued by the Company with respect to completed offerings if such offerings include investments sourced by Scarsdale. For avoidance of doubt, this Section 11 shall not apply to any filings with any federal, state, or local government, agency, or other regulatory authority.

12. Indemnification and Contribution. The Company agrees to indemnify Scarsdale in accordance with the provisions of Exhibit A hereto, which is incorporated by reference herein and made a part hereof.

13. Miscellaneous. This Agreement contains the entire agreement between the Company and Scarsdale concerning the engagement of Scarsdale by the Company, and any modifications to this Agreement or any waiver of any term or condition hereof will not be binding unless approved in writing by both parties. Proof of a validly executed agreement may be sent to the other party hereto via facsimile or email. This Agreement shall be governed by and construed in accordance with the laws of the State of New York, without giving effect to the principles of conflicts of laws.

Please confirm that the foregoing, including Exhibit A, attached, is in accordance with your understanding and agreement and kindly execute and return this Agreement.

    Very truly yours,

    SCARSDALE EQUITIES LLC

By: /s/ Francis A. Mlynarczyk, Jr.

    Francis A. Mlynarczyk, Jr.

    Chief Executive Officer

Agreed and accepted:

EUROSITE POWER INC.

By: /s/ Barry J. Sanders

Barry J. Sanders

Chief Executive Officer

Exhibit A

In consideration of the agreement of Scarsdale to act on behalf of the Company pursuant to this Agreement, the Company agrees to indemnify and hold harmless Scarsdale, its affiliates (within the meaning of the Securities Act), and each of their respective partners, directors, officers, agents, consultants, employees and controlling persons (within the meaning of the Securities Act) (Scarsdale and each such other person or entity are hereinafter referred to as an “Indemnified Person”), from and against any losses, damages, expenses and liabilities (collectively “Liabilities”) or actions, investigations, inquiries, arbitrations, claims or other proceedings in respect thereof, including enforcement of this Agreement (collectively “Actions”) (Liabilities and Actions are herein collectively referred to as “Losses”), as they may be incurred (including all reasonable legal fees and other expenses incurred in connection with investigating, preparing, defending, paying, settling or compromising any Losses, whether or not in connection with any pending or threatened Action, and notwithstanding the absence of a final determination as set forth below as to the Company's obligation to reimburse an Indemnified Person for such Losses and the possibility that such payments might later be held to have been improper) to which any of them may become subject and which are related to or arise out of any act, omission, transaction or event contemplated by the Agreement. The Company will not, however, be responsible under the foregoing provisions with respect to any Losses to the extent that it shall have been finally determined by a court of competent jurisdiction in accordance with the terms of the Agreement that such Losses (i) resulted primarily from actions taken or omitted to be taken by an Indemnified Person due to its gross negligence, fraud, bad faith, or willful misconduct or (ii) arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, any other Placement Documents, or in any marketing materials, or any amendment or supplement to the foregoing, in reliance upon and in conformity with written information furnished to the Company by Scarsdale. To the extent that any prior payment has been made by the Company to such Indemnified Person is so determined to have been improper by reason of either clauses (i) or (ii) of the preceding sentence, such Indemnified Person shall promptly pay such amount to the Company, together with interest, at the prime rate announced from time to time by U.S. Bank, N.A.

If the indemnity referred to in this Exhibit A should be, for any reason whatsoever, unenforceable, unavailable or otherwise insufficient to hold each Indemnified Person harmless, the Company shall pay to or on behalf of each Indemnified Person contributions for Losses so that each Indemnified Person ultimately bears only a portion of such Losses as is appropriate to reflect the relative benefits received by as well as the relative fault of each such Indemnified Person, respectively, on the one hand and the Company on the other hand in connection with the transaction, as well as any other relevant equitable considerations; provided, however, that in no event shall the aggregate contribution of all Indemnified Persons to all Losses in connection with any transaction exceed the amount of the fee actually received by Scarsdale pursuant to this Agreement. The respective relative benefits received by Scarsdale and the Company in connection with any transaction shall be deemed to be in the same proportion as the aggregate fee paid to Scarsdale in connection with the transaction bears to the total consideration of the transaction with respect to funds raised from investors introduced by Scarsdale. The relative fault of each Indemnified Person and the Company shall be determined by reference to, among other things, whether the actions or omissions to act were by such Indemnified Person or the Company and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such action or omission to act.

The Company also agrees that no Indemnified Person shall have any liability to the Company or its affiliates, directors, officers, employees, agents or shareholders, directly or indirectly, related to or arising out of the Agreement, except Losses incurred by the Company which it shall have been finally determined by a court of competent jurisdiction in accordance with the terms of the Agreement to have resulted primarily from (i) actions taken or omitted to be taken by such Indemnified Person due to its gross negligence, fraud, bad faith or willful misconduct or (ii) an untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, any other Placement Documents, or in any marketing materials, or any amendment or supplement to the foregoing, in reliance upon and in conformity with written information furnished to the Company by Scarsdale. In no event, regardless of the legal theory advanced, shall any person be liable for any consequential, indirect, incidental or special damages of any nature arising hereunder. The Company agrees that without Scarsdale's prior written consent it shall not settle any pending or threatened claim, action, suit or proceeding related to the Agreement unless the settlement also includes an express unconditional release of all Indemnified Persons from all liability and obligations arising therefrom, or the Company reaffirms its obligations to indemnify for or contribute to Losses incurred by any unreleased Indemnified Person as herein provided.

Promptly after its receipt of notice of the commencement of any action, any Indemnified Person will, if a claim in respect thereof is to be made against the Company hereunder, notify in writing the Company of the commencement thereof; but omission so to notify the Company will not relieve the Company from any liability hereunder which it may have to any Indemnified Person, except to the extent that the Company was materially prejudiced by such failure. If the Company so elects, the Company may assume the defense of such Action in a timely manner, including the employment of counsel (reasonably satisfactory to Scarsdale) and payment of expenses, provided the Company acknowledges in writing its unconditional obligation pursuant to this Agreement to indemnify Scarsdale in respect of such Action and provides to Scarsdale evidence reasonably satisfactory to Scarsdale that the Company will have the financial resources to conduct such defense actively and diligently and permits Scarsdale

and counsel retained by Scarsdale at its expense to participate in such defense. Notwithstanding the foregoing, in the event Scarsdale determines in its sole discretion that it is advisable for the Indemnified Persons to be represented by separate counsel, then Scarsdale may employ on behalf of the Indemnified Persons a single separate counsel to represent or defend such Indemnified Persons in such action, claim, proceeding or investigation and Scarsdale will pay the fees and disbursements of such separate counsel as incurred.

In the event of any fundamental change involving the corporate structure of the Company, such as by merger, plan of exchange or sale of all or substantially all of its assets, any executory obligations of the Company in this Agreement shall, if not assumed by operation of law, be assumed by contract by the acquiring entity or arrangements made to protect the interests of Scarsdale reasonably satisfactory to Scarsdale.

The obligations of the Company referred to above shall be in addition to any rights that any Indemnified Person may otherwise have.

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Earnings per share

9 Months Ended

Sep. 30, 2012

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

Note 4 — Earnings per share:

Basic and diluted earnings per share for the three and nine month periods ended September 30, 2012 and 2011, respectively was as follows:

	Three Months						Nine Months
	September 30, 2012			September 30, 2011			September 30, 2012			September 30, 2011
Earnings per share
Loss available to stockholders	$	(383,253	)	$	(531,850	)	$	(1,271,416	)	$	(851,966	)
Weighted average shares outstanding - Basic and diluted	54,362,100			54,362,100			54,362,100			53,982,796
Basic and diluted loss per share	$	(0.01	)	$	(0.01	)	$	(0.02	)	$	(0.02	)
Anti-dilutive shares underlying warrants outstanding	—			400,000			—			400,000
Anti-dilutive shares underlying stock options outstanding	3,590,000			2,400,000			3,590,000			2,400,000

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Stockholders' equity

9 Months Ended

Sep. 30, 2012

Stockholders Equity Note [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

Note 3 — Stockholders’ equity:

Common Stock

On July 9, 2010, American DG Energy invested $45,000 in exchange for 45 million shares of the Company’s Common Stock and obtained controlling interest in the Company. Also on July 9, 2010, Nettlestone Enterprises Limited, invested $5,000 in exchange for 5 million shares of the Company’s Common Stock. During the period from July 9, 2010 to December 31, 2010, the Company raised an additional $2,221,019 net of costs, in a private placement by selling 2,261,000 shares of Common Stock to 25 accredited investors at a price of $1.00 per share.

During the period from January 1, 2011 to December 31, 2011, the Company raised an additional $1,148,401 net of costs, in a private placement by issuing 1,250,000 shares of Common Stock to 4 accredited investors at a price of $1.00 per share.

On February 10, 2012, the Company announced that its Board of Directors declared a stock dividend of 10% per share on the outstanding shares of our Common Stock. The dividend was payable on March 12, 2012, to common stockholders of record at the close of business on February 24, 2012, except for shares held by American DG Energy, whose Board of Directors declined the dividend. The Company adjusted the price of its outstanding stock option awards and warrants to $0.90 per share due to the payment of the dividend. The Company retroactively applied this dividend to the December 31, 2011, financial statements. Prior to that transaction, the Company had paid no cash or stock dividends on its Common Stock. The Company currently expects to retain earnings for use in the operation and expansion of its business, and therefore does not anticipate paying any cash dividends in the foreseeable future.

The holders of Common Stock have the right to vote their interest on a per share basis. At September 30, 2012, there were 54,362,100 shares of Common Stock outstanding.

Warrants

On July 12, 2010, the Company granted to Nettlestone Enterprises Limited a special purchase right, or warrant. The warrant grants the investor the non-assignable right but not the obligation, for a period of two years from July 12, 2010, to purchase 400,000 shares of the Common Stock at a per share purchase price of $1.00. On March 12, 2012, in connection with the 10% stock dividend declared on the Company’s common stock, the per share purchase price of the warrant was adjusted to $0.90. The fair value of the warrants granted was estimated using the Black-Scholes option pricing valuation model and the value of the warrant was recorded in stockholder’s equity in additional paid-in capital and as a cost of the financing as a deduction to the proceeds raised. Those warrants expired unexercised on July 12, 2012.

Stock-Based Compensation

In January 2011, the Company adopted the 2011 Stock Incentive Plan, or the Plan, under which the Board of Directors may grant up to 3,000,000 shares of incentive or non-qualified stock options and stock grants to key employees, directors, advisors and consultants of the Company. On June 13, 2011, the Board of Directors unanimously amended the Plan, to increase the reserved shares of Common Stock issuable under the Plan from 3,000,000 to 4,500,000, or the Amended Plan.

Stock options vest based upon the terms within the individual option grants, usually over a four year period with an acceleration of the unvested portion of such options upon a liquidity event, as defined in the Company’s stock option agreement. The options are not transferable except by will or domestic relations order. The option price per share under the Amended Plan is not less than the fair value of the shares on the date of the grant. The number of securities remaining available for future issuance under the Amended Plan was 910,000 at September 30, 2012.

On January 15, 2011, the Company granted nonqualified options to purchase 2,100,000 shares of Common Stock to five employees and two directors at a purchase price of $1.00 per share. Those options have a vesting schedule of four years and expire in ten years. The assumptions used in the Black-Scholes option pricing model include an expected life of 6.25 years, a risk-free interest rate of 2.7% and an expected volatility of 32.8%. The fair value of the options issued was $790,908, with a grant date fair value of $0.38 per option.

On June 13, 2011, the Company granted nonqualified options to purchase 300,000 shares of Common Stock to three directors at a purchase price of $1.00 per share. Those options have a vesting schedule of four years and expire in ten years. The assumptions used in the Black-Scholes option pricing model include an expected life of 6.25 years, a risk-free interest rate of 2.3% and an expected volatility of 32.4%. The fair value of the options issued was $109,304, with a grant date fair value of $0.36 per option.

On November 3, 2011, the Company granted its managing director options to purchase 900,000 shares of common stock at purchase price of $1.00 per share and granted to the three members of its advisory board options to purchase 300,000 shares of common stock at purchase price of $1.00 per share. Those options have a vesting schedule of four years and expire in ten years and were made under the UK Sub-Plan to the Company’s 2011 Stock Incentive Plan. The assumptions used in the Black-Scholes option pricing model include an expected life of 6.25 years, a risk-free interest rate of 1.5% and an expected volatility of 33.1%. The fair value of the options issued was $423,400, with a grant date fair value of $0.35 per option.

On March 12, 2012, in connection with the 10% stock dividend declared on the Company’s common stock, all outstanding stock option awards were modified in order to adjust the exercise price to $0.90. Based on the change in fair value of the modified awards, the Company will recognize incremental compensation cost of $111,482 over the remaining vesting terms of the outstanding options.

During the nine month period ending September 30, 2012, the Company had 3,590,000 options outstanding and recognized employee non-cash compensation expense of $374,014 related to the issuance of those stock options. At September 30, 2012, the total compensation cost related to unvested stock option awards not yet recognized was $585,171. This amount will be recognized over the weighted average period of 2.64 years.

Stock option activity as of and for the nine month period ending September 30, 2012 was as follows:

Common Stock Options	Number of Options		Exercise Price Per Share		Weighted Average Exercise Price		Weighted Average Remaining Life	Aggregate Intrinsic Value
Outstanding, December 31, 2011	3,600,000		$	0.90	$	0.90	9.34 years	—
Granted	—		—		—
Exercised	—		—		—
Canceled	(10,000	)	0.90		0.90
Expired	—		—		—
Outstanding, September 30, 2012	3,590,000		$	0.90	$	0.90	8.59 years	$	11,129,000
Exercisable, September 30, 2012	597,500				$	0.90		$	1,852,250
Vested and expected to vest, September 30, 2012	3,590,000				$	0.90		$	11,129,000

The aggregate intrinsic value of options outstanding as of September 30, 2012, is calculated as the difference between the exercise price of the underlying options and the price of the Company’s Common Stock for options that were in-the-money as of that date. Options that were not in-the-money as of that date, and therefore have a negative intrinsic value, have been excluded from this amount. At September 30, 2012 there were 2,992,500 unvested stock options outstanding with a vesting schedule of 25% per year and expiration in ten years.

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CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Sep. 30, 2012	Dec. 31, 2011
ASSETS
Cash and cash equivalents	$ 771,087	$ 2,338,783
Accounts receivable	24,457	0
Value added tax receivable	61,422	77,197
Inventory	198,439	137,976
Other current assets	24,377	19,721
Total current assets	1,079,782	2,573,677
Property, plant and equipment, net	884,871	4,576
TOTAL ASSETS	1,964,653	2,578,253
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable	271,092	57,349
Due to related party	82,014	0
Accrued expenses and other current liabilities	36,061	48,016
Total current liabilities	389,167	105,365
Total liabilities	389,167	105,365
Stockholders' equity:
Common stock, $0.001 par value; 100,000,000 shares authorized; 54,362,100 issued and outstanding at September 30, 2012 and December 31, 2011, respectively	54,362	54,362
Additional paid-in capital	4,213,767	3,839,753
Accumulated deficit	(2,692,643)	(1,421,227)
Total stockholders' equity	1,575,486	2,472,888
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 1,964,653	$ 2,578,253

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Description of business and summary of significant accounting policies

9 Months Ended

Sep. 30, 2012

Accounting Policies [Abstract]

Business Description and Accounting Policies [Text Block]

Note 1 — Description of business and summary of significant accounting policies:

Description of Business

EuroSite Power Inc., the Company, we, our or us, distributes, owns and operates clean, on-site energy systems that produce electricity, hot water, heat and cooling in the United Kingdom and Europe. The Company’s business model is to own the equipment it installs at customers’ facilities and to sell the energy produced by these systems to the customers on a long-term contractual basis at prices guaranteed to the customer to be below conventional utility rates. The Company calls this business the EuroSite Power “On-Site Utility.”

The Company was incorporated as a Delaware corporation on July 9, 2010 as a subsidiary of American DG Energy Inc., or American DG Energy, to introduce the American DG Energy’s On-Site Utility solution into the United Kingdom and the European market.

Principles of Consolidation and Basis of Presentation

The unaudited condensed consolidated financial statements, or the Unaudited Financial Statements, presented herein have been prepared by the Company, without audit, and, in the opinion of management, reflect all adjustments (consisting of normal recurring adjustments) necessary for a fair statement of the interim periods presented. The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP, for interim financial information and pursuant to the rules and regulations of the SEC, for reporting in this Quarterly Report on Form 10-Q, or the Quarterly Report. Accordingly, certain information and footnote disclosures required for complete financial statements are not included herein. It is suggested that the Unaudited Financial Statements be read in conjunction with the consolidated financial statements and notes included in the Company’s Form 10-K for the year ended December 31, 2011. The Company’s operating results for the three and nine month period ended September 30, 2012, may not be indicative of the results expected for any succeeding interim periods or for the entire year ending December 31, 2012.     

The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary EuroSite Power Limited, a United Kingdom registered company.

On July 9, 2010, American DG Energy invested $45,000 in exchange for 45 million shares of the Company’s common stock, par value $.001 per share, or Common Stock, and obtained controlling interest in the Company. Also on July 9, 2010, Nettlestone Enterprises Limited, invested $5,000 in exchange for 5 million shares of the Company’s Common Stock. As of September 30, 2012, American DG Energy owned an 82.8% interest in the Company and consolidates the Company into its financial statements in accordance with GAAP.

The Company’s operations are comprised of one business segment. The Company’s business is to sell energy in the form of electricity, heat, hot water and cooling to its customers under long-term sales agreements.

The Company has experienced total net losses since inception of $2.7 million. For the foreseeable future, the Company expects to experience continuing operating losses and negative cash flows from operations as its management executes its current business plan. The Company believes that its existing resources, including cash and cash equivalents, future cash flow from operations, its ability to control certain costs, including those related to general and administrative expenses, and the use of capital from its parent company, will be sufficient to meet the working capital requirements of its existing business for the foreseeable future, including the next 12 months; however, as the Company continues to grow its business by adding more energy systems, the cash requirements will increase. On July 11, 2012, the Company filed a Form S-1 registration statement with the SEC to offer up to 15,000,000 shares of common stock and warrants. The common stock and the warrants will be sold in units, at a price of $1.00 per unit, with each unit consisting of one share of common stock and a warrant to purchase one share of common stock at an exercise price of $1.00 per share; however, there is no assurance that the Company will be successful in its fundraising efforts. Beyond September 30, 2013, if the Company cannot raise capital by the existing equity fundraising effort, it may need to raise additional capital through a debt financing or use capital provided by its parent to meet its operating and capital needs. There can be no assurance, however, that the Company will be successful in these fund-raising efforts or that additional funds will be available on acceptable terms, if at all.

Since its inception to September 30, 2012, the Company has raised a total of $3,511,000 through various private placements of Common Stock. If the Company is unable to raise additional capital, the Company may need to terminate certain of its employees and adjust its current business plan. Financial considerations may cause the Company to modify planned deployment of new energy systems and the Company may decide to suspend installations until it is able to secure additional working capital. The Company will evaluate possible acquisitions of, or investments in, businesses, technologies and products that are complementary to its business; however, the Company is not currently engaged in such discussions.

The following significant accounting policies are either currently in effect or are anticipated to become effective as the Company commences its normal business activities.

Foreign Currency Transactions

The functional currency and the reporting currency of the Company are the U.S. dollar. Transactions denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the date of the transactions. Exchange gains or losses on transactions are included in the Condensed Consolidated Statement of Operations. 

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Revenue Recognition

Revenue from energy contracts will be recognized when electricity, heat, and chilled water is produced by the cogeneration systems on-site. The Company expects to bill each month based on various meter readings installed at each site. The amount of energy produced by on-site energy systems will be invoiced, as determined by a contractually defined formula. Under certain energy contracts, the customer will directly acquire the fuel to power the systems and will receive credit for that expense from the Company. The credit will be recorded as reduction of revenue.

As a by-product of the energy business, in some cases, the customer may choose to have the Company construct the system for them rather than have it owned by the Company. In this case, the Company will account for revenue, or turnkey revenue, and costs using the percentage-of-completion method of accounting. Under the percentage-of-completion method of accounting, revenues are recognized by applying percentages of completion to the total estimated revenues for the respective contracts. Costs will be recognized as incurred. The percentages of completion are determined by relating the actual cost of work performed to date to the current estimated total cost at completion of the respective contracts. When the estimate on a contract indicates a loss, the Company’s policy will be to record the entire expected loss, regardless of the percentage of completion. The excess of contract costs and profit recognized to date on the percentage-of-completion accounting method in excess of billings will be recorded as unbilled revenue. Billings in excess of related costs and estimated earnings will be recorded as deferred revenue.

Customers may buy out their long-term obligation under energy contracts and purchase the underlying equipment from the Company. Any resulting gain on these transactions will be recognized over the payment period in the consolidated statements of operations. Revenues from operations, including shared savings will be recorded when provided and verified. Maintenance service revenue will be recognized over the term of the agreement and will be billed on a monthly basis in arrears. The Company had no such arrangements to date.

Occasionally the Company will enter into a sales arrangement with a customer to construct and sell an energy system and provide energy and maintenance services over the term of the contract. Based on the fact that the Company will sell each deliverable to other customers on a stand-alone basis, the Company will determine that each deliverable has a stand-alone value. Additionally, there are no rights of return relative to the delivered items; therefore, each deliverable will be considered a separate unit of accounting. Revenue will be allocated to each element based upon its relative fair value which is determined based on the estimated price of the deliverables when sold on a standalone basis. Revenue related to the construction of the energy system will be recognized using the percentage-of-completion method as the unit is being constructed. Revenue from the sale of energy will be recognized when electricity, heat, and chilled water is produced by the energy system, and revenue from maintenance services is recognized over the term of the maintenance agreement. The Company had no such arrangements to date.

The Company may be able to participate in the demand response market and receive payments due to the availability of its energy systems. Demand response programs provide payments for either the reduction of electricity usage or the increase in electricity production during periods of peak usage throughout a utility territory. The Company had not recognized revenue from demand response activity to date.

Other revenue represents various types of ancillary activities for which the Company expects to engage in from time to time such as the sale of equipment, construction work, engineering work and feasibility studies.

Cash and Cash Equivalents

The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents.

Concentration of Credit Risk

Financial instruments which potentially subject the Company to concentrations of credit risk consist of highly liquid cash equivalents. The Company has cash balances in certain financial institutions in amounts which occasionally exceed current federal deposit insurance limits. The financial stability of these institutions is continually reviewed by senior management. As of September 30, 2012, the Company had a balance of $771,087 in cash and cash equivalents. The Company believes it is not exposed to any significant credit risk on cash and cash equivalents.

Accounts Receivable

The Company maintains receivable balances with its customers. The Company reviews its customers’ credit history before extending credit and generally does not require collateral. An allowance for doubtful accounts is established based upon factors surrounding the credit risk of specific customers, historical trends and other information. Bad debts are written off when identified by management. At September 30, 2012, and December 31, 2011, the allowance for doubtful accounts was $0 and $0, respectively.

Inventory

Inventories are stated at the lower of cost or market, valued on a first-in, first-out basis. Inventory is reviewed periodically for slow-moving and obsolete items.

Supply Concentrations

All of the Company’s cogeneration unit purchases for the periods ending September 30, 2012 and 2011, respectively, were from one vendor (see “Note 5 - Related parties”). The Company believes there are sufficient alternative vendors available to ensure a constant supply of cogeneration units on comparable terms. However, in the event of a change in suppliers, there could be a delay in obtaining units which could result in a temporary slowdown of installing additional income producing sites. The Company believes there are sufficient alternative vendors available to ensure a constant supply of maintenance and installation services on comparable terms. However, in the event of a change of vendor, there could be a delay in installation or maintenance services.

Property Plant and Equipment

Property and equipment are stated at cost. Depreciation and amortization are computed using the straight-line method at rates sufficient to write off the cost of the applicable assets over their estimated useful lives. Repairs and maintenance are expensed as incurred.

The Company will evaluate the recoverability of its long-lived assets by comparing the net book value of the assets to the estimated future undiscounted cash flows attributable to such assets. The useful life of the Company’s energy systems will be the lesser of the economic life of the asset or the term of the underlying contract with the customer, typically 12 to 15 years. The Company will review the useful life of its energy systems on a quarterly basis or whenever events or changes in business circumstances indicate that the carrying value of the assets may not be fully recoverable or that the useful lives of the assets will no longer be appropriate. If impairment is indicated, the asset will be written down to its estimated fair value based on a discounted cash flow analysis.

Stock-Based Compensation

Stock-based compensation cost is measured at the grant date based on the estimated fair value of the award and is recognized as an expense in the consolidated statements of operations over the requisite service period. The fair value of stock options granted is estimated using the Black-Scholes option pricing valuation model. The Company recognizes compensation on a straight-line basis for each separately vesting portion of the option award. Use of a valuation model requires management to make certain assumptions with respect to selected model inputs. Expected volatility was calculated based on the average volatility of 5 companies in the same industry as the Company. The average expected life is estimated using the simplified method for “plain vanilla” options. The simplified method determines the expected life in years based on the vesting period and contractual terms as set forth when the award is made. The risk-free interest rate is based on United States Treasury zero-coupon issues with a remaining term which approximates the expected life assumed at the date of grant. When options are exercised the Company normally issues new shares.

See “Note 3 – Stockholders’ equity” for a summary of the stock option activity under our 2011 Stock Incentive Plan, as amended, and the UK Sub-Plan for the periods ending September 30, 2012 and 2011, respectively.

Loss per Common Share

The Company computes basic loss per share by dividing net loss for the period by the weighted-average number of shares of Common Stock outstanding during the period. The Company computes its diluted earnings per common share using the treasury stock method. For purposes of calculating diluted earnings per share, the Company considers its shares issuable in connection with stock options and warrants to be dilutive Common Stock equivalents when the exercise price is less than the average fair market value of the Company’s Common Stock for the period.

Other Comprehensive Net Loss

The comprehensive net loss for the periods ending September 30, 2012 and 2011, respectively, does not differ from the reported loss.

Income Taxes

As part of the process of preparing its consolidated financial statements, the Company is required to estimate its income taxes in each of the jurisdictions in which the Company operates. This process involves the Company estimating its actual current tax exposure together with assessing temporary differences resulting from differing treatment of items, such as depreciation and certain accrued liabilities for tax and accounting purposes. These differences result in deferred tax assets and liabilities, which are included within the Company’s consolidated balance sheets. The Company must then assess the likelihood that its deferred tax assets will be recovered from future taxable income and to the extent the Company believes that recovery is not likely, the Company must establish a valuation allowance.

The Company uses a comprehensive model for the recognition, measurement and financial statement disclosure of uncertain tax positions. Unrecognized benefits are the differences between tax positions taken, or expected to be taken in tax returns and the benefits recognized for accounting purposes.

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Inventory

9 Months Ended

Sep. 30, 2012

Inventory Disclosure [Abstract]

Inventory Disclosure [Text Block]

Note 2 — Inventory:

As of September 30, 2012 and 2011, the Company had $198,439 and $137,976, respectively, in inventory which consisted of finished goods. As of September 30, 2012 and December 31, 2011, there were no reserves or write downs recorded against inventory.

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CONDENSED CONSOLIDATED BALANCE SHEETS [Parenthetical] (USD $)	Sep. 30, 2012	Dec. 31, 2011
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	54,362,100	54,362,100
Common stock, shares outstanding	54,362,100	54,362,100

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Inventory (Details Textual) (USD $)	Sep. 30, 2012	Dec. 31, 2011
Inventory	$ 198,439	$ 137,976

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DOCUMENT AND ENTITY INFORMATION	9 Months Ended
	Sep. 30, 2012
Entity Registrant Name	EUROSITE POWER INC
Entity Central Index Key	0001528103
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Trading Symbol	eusp
Entity Common Stock, Shares Outstanding	54,362,100
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2012
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2012

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Stockholders' equity (Details) (USD $)	1 Months Ended			9 Months Ended	12 Months Ended
	Nov. 30, 2011	Jun. 30, 2011	Jan. 31, 2011	Sep. 30, 2012	Dec. 31, 2011
Number of Options, Outstanding, December 31, 2011				3,600,000
Number of Options, Granted	900,000	300,000	2,100,000	0
Number of Options, Exercised				0
Number of Options, Canceled				(10,000)
Number of Options, Expired				0
Number of Options, Outstanding, September 30,2012				3,590,000	3,600,000
Number of Options, Exercisable, September 30, 2012				597,500
Number of Options, Vested and expected to vest, September 30, 2012				3,590,000
Exercise Price Per Share, Outstanding, December 31, 2011				$ 0.90
Exercise Price Per Share, Granted				$ 0
Exercise Price Per Share, Exercised				$ 0
Exercise Price Per Share, Canceled				$ 0.90
Exercise Price Per Share, Expired				$ 0
Exercise Price Per Share, Outstanding, September 30, 2012				$ 0.90	$ 0.90
Weighted Average Exercise Price, Outstanding, December 31, 2011				$ 0.90
Weighted Average Exercise Price, Granted	$ 1.00	$ 1.00	$ 1.00	$ 0
Weighted Average Exercise Price, Exercised				$ 0
Weighted Average Exercise Price, Canceled				$ 0.90
Weighted Average Exercise Price, Expired				$ 0
Weighted Average Exercise Price, Outstanding, September 30, 2012				$ 0.90	$ 0.90
Weighted Average Exercise Price, Exercisable, September 30, 2012				$ 0.90
Weighted Average Exercise Price, Vested and expected to vest, September 30, 2012				$ 0.90
Weighted Average Remaining Life, Outstanding	6 years 3 months	6 years 3 months	6 years 3 months	8 years 7 months 2 days	9 years 4 months 2 days
Aggregate Intrinsic Value, Outstanding, December 31, 2011				$ 0
Aggregate Intrinsic Value, Outstanding, September 30, 2012				11,129,000	0
Aggregate Intrinsic Value, Exercisable, September 30, 2012				1,852,250
Aggregate Intrinsic Value, Vested and expected to vest, September 30, 2012				$ 11,129,000

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Revenues
Energy revenues	$ 5,594	$ 0	$ 5,594	$ 0
Turnkey & other revenues	18,398	0	45,992	0
Revenue, Net	23,992	0	51,586	0
Cost of sales
Fuel, maintenance and installation	18,089	0	38,193	0
Depreciation expense	0	0	0	0
Cost of Services	18,089	0	38,193	0
Gross profit	5,903	0	13,393	0
Operating expenses
General and administrative	81,522	206,211	657,329	526,327
Selling	289,191	325,639	584,186	325,639
Engineering	21,440	0	55,432	0
Operating Expenses	392,153	531,850	1,296,947	851,966
Loss from operations	(386,250)	(531,850)	(1,283,554)	(851,966)
Other income (expense)
Interest and other income	2,997	0	12,138	0
Interest expense	0	0	0	0
Nonoperating Income (Expense)	2,997	0	12,138	0
Loss before income taxes	(383,253)	(531,850)	(1,271,416)	(851,966)
Provision for income taxes	0	0	0	0
Net loss	$ (383,253)	$ (531,850)	$ (1,271,416)	$ (851,966)
Net loss per share - basic and diluted (in dollars per share)	$ (0.01)	$ (0.01)	$ (0.02)	$ (0.02)
Weighted-average shares outstanding - basic and diluted (in shares)	54,362,100	54,362,100	54,362,100	53,982,796

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Subsequent events

9 Months Ended

Sep. 30, 2012

Subsequent Events [Abstract]

Subsequent Events [Text Block]

Note 7— Subsequent events:

The company has evaluated subsequent events through the date of this filing and determined that no subsequent events occurred that would require recognition in the consolidated financial statements or disclosure in the notes thereto.

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Fair value measurements

9 Months Ended

Sep. 30, 2012

Fair Value Disclosures [Abstract]

Fair Value Disclosures [Text Block]

Note 6 — Fair value measurements:

The fair value topic of the FASB Accounting Standards Codification defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The accounting guidance also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs, where available, and minimize the use of unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value:

Level 1 — Quoted prices in active markets for identical assets or liabilities that the entity has the ability to access at the measurement date. The Company currently does not have any Level 1 financial assets or liabilities.

Level 2 — Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. The Company currently does not have any Level 2 financial assets or liabilities.

Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Company currently does not have any Level 3 financial assets or liabilities.

At September 30, 2012, the Company has no financial instruments that are required to be recorded at fair value on a recurring basis. The Company’s financial instruments include cash and cash equivalents and accounts payable whose recorded values approximate fair value based on their short term nature.

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Stockholders' equity (Details Textual) (USD $)	1 Months Ended			6 Months Ended	9 Months Ended		12 Months Ended	1 Months Ended						6 Months Ended	9 Months Ended	12 Months Ended
	Nov. 30, 2011	Jun. 30, 2011	Jan. 31, 2011	Dec. 31, 2010	Sep. 30, 2012	Sep. 30, 2011	Dec. 31, 2011	Nov. 30, 2011 Maximum [Member]	Jun. 30, 2011 Maximum [Member]	Jan. 31, 2011 Maximum [Member]	Nov. 30, 2011 Minimum [Member]	Jun. 30, 2011 Minimum [Member]	Jan. 31, 2011 Minimum [Member]	Dec. 31, 2010 Warrant [Member]	Sep. 30, 2012 Warrant [Member]	Dec. 31, 2011 Stock Compensation Plan [Member]	Jul. 09, 2010 Investments In Majority-Owned Subsidiaries [Member] American DG [Member]	Jul. 09, 2010 Investments In Majority-Owned Subsidiaries [Member] Nettlestone Enterprise [Member]
Investments																	$ 45,000	$ 5,000
Shares Exchanged																	45,000,000	5,000,000
Stock Issued During Period Value Private Placement				2,221,019			1,148,401
Stock Issued During Period Shares Private Placement				2,261,000			1,250,000
Number Of Accredited Investors				25			4
Proceeds from sale of common stock, net of costs					0	1,148,401
Common stock, par value (in dollars per share)					$ 0.001		$ 0.001								$ 1		$ 0.001
Common stock, shares outstanding					54,362,100		54,362,100
Warrants Granted For Shares														400,000
Number of Options, Granted	900,000	300,000	2,100,000		0											3,000,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Other Increases (Decreases) in Period, Description							3,000,000 to 4,500,000
Share Based Compensation Arrangement By Share Based Payment Award Options Vested and Expected To Vest Outstanding Contractual Term					4 years
Common Stock, Capital Shares Reserved for Future Issuance					910,000
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate	1.50%	2.30%	2.70%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate	33.10%	32.40%	32.80%
Share Based Compensation Arrangement By Share Based Payment Fair Value	423,400	109,304	790,908
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 0.35	$ 0.36	$ 0.38
Stock-based compensation					374,014	321,951
Aggregate Intrinsic Value, Vested and expected to vest					10.00
Common Stock Dividend Rate Percentage					10.00%										10.00%
Dividends Payable, Date to be Paid					Mar. 12, 2012
Dividends Payable, Date of Record					Feb. 24, 2012
Adjusted Price Of Stock Option Awards and Warrants					$ 0.90										$ 0.90
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period								10 years	10 years	10 years	4 years	4 years	4 years
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term	6 years 3 months	6 years 3 months	6 years 3 months		8 years 7 months 2 days		9 years 4 months 2 days
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price	$ 1.00	$ 1.00	$ 1.00		$ 0									$ 1.00
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Stock Options					585,171
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition					2 years 7 months 20 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number					2,992,500
Share Based Compensation Arrangement By Share Based Payment Award Options Vested and Expected To Vest Percentage					25.00%
Investment Warrants Expiration Date					Jul. 12, 2012
Option To Purchase Common Stock	300,000
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Outstanding, Number					3,590,000		3,600,000
Allocated Share-Based Compensation Expense					$ 111,482

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Earnings per share (Tables)

9 Months Ended

Sep. 30, 2012

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

Basic and diluted earnings per share for the three and nine month periods ended September 30, 2012 and 2011, respectively was as follows:

	Three Months						Nine Months
	September 30, 2012			September 30, 2011			September 30, 2012			September 30, 2011
Earnings per share
Loss available to stockholders	$	(383,253	)	$	(531,850	)	$	(1,271,416	)	$	(851,966	)
Weighted average shares outstanding - Basic and diluted	54,362,100			54,362,100			54,362,100			53,982,796
Basic and diluted loss per share	$	(0.01	)	$	(0.01	)	$	(0.02	)	$	(0.02	)
Anti-dilutive shares underlying warrants outstanding	—			400,000			—			400,000
Anti-dilutive shares underlying stock options outstanding	3,590,000			2,400,000			3,590,000			2,400,000

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Description of business and summary of significant accounting policies (Policies)

9 Months Ended

Sep. 30, 2012

Accounting Policies [Abstract]

Description Of Business [Policy Text Block]

Description of Business

EuroSite Power Inc., the Company, we, our or us, distributes, owns and operates clean, on-site energy systems that produce electricity, hot water, heat and cooling in the United Kingdom and Europe. The Company’s business model is to own the equipment it installs at customers’ facilities and to sell the energy produced by these systems to the customers on a long-term contractual basis at prices guaranteed to the customer to be below conventional utility rates. The Company calls this business the EuroSite Power “On-Site Utility.”

The Company was incorporated as a Delaware corporation on July 9, 2010 as a subsidiary of American DG Energy Inc., or American DG Energy, to introduce the American DG Energy’s On-Site Utility solution into the United Kingdom and the European market.

Principles Of Consolidation and Basis Of Presentation [Policy Text Block]

Principles of Consolidation and Basis of Presentation

The unaudited condensed consolidated financial statements, or the Unaudited Financial Statements, presented herein have been prepared by the Company, without audit, and, in the opinion of management, reflect all adjustments (consisting of normal recurring adjustments) necessary for a fair statement of the interim periods presented. The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP, for interim financial information and pursuant to the rules and regulations of the SEC, for reporting in this Quarterly Report on Form 10-Q, or the Quarterly Report. Accordingly, certain information and footnote disclosures required for complete financial statements are not included herein. It is suggested that the Unaudited Financial Statements be read in conjunction with the consolidated financial statements and notes included in the Company’s Form 10-K for the year ended December 31, 2011. The Company’s operating results for the three and nine month period ended September 30, 2012, may not be indicative of the results expected for any succeeding interim periods or for the entire year ending December 31, 2012.     

The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary EuroSite Power Limited, a United Kingdom registered company.

On July 9, 2010, American DG Energy invested $45,000 in exchange for 45 million shares of the Company’s common stock, par value $.001 per share, or Common Stock, and obtained controlling interest in the Company. Also on July 9, 2010, Nettlestone Enterprises Limited, invested $5,000 in exchange for 5 million shares of the Company’s Common Stock. As of September 30, 2012, American DG Energy owned an 82.8% interest in the Company and consolidates the Company into its financial statements in accordance with GAAP.

The Company’s operations are comprised of one business segment. The Company’s business is to sell energy in the form of electricity, heat, hot water and cooling to its customers under long-term sales agreements.

The Company has experienced total net losses since inception of $2.7 million. For the foreseeable future, the Company expects to experience continuing operating losses and negative cash flows from operations as its management executes its current business plan. The Company believes that its existing resources, including cash and cash equivalents, future cash flow from operations, its ability to control certain costs, including those related to general and administrative expenses, and the use of capital from its parent company, will be sufficient to meet the working capital requirements of its existing business for the foreseeable future, including the next 12 months; however, as the Company continues to grow its business by adding more energy systems, the cash requirements will increase. On July 11, 2012, the Company filed a Form S-1 registration statement with the SEC to offer up to 15,000,000 shares of common stock and warrants. The common stock and the warrants will be sold in units, at a price of $1.00 per unit, with each unit consisting of one share of common stock and a warrant to purchase one share of common stock at an exercise price of $1.00 per share; however, there is no assurance that the Company will be successful in its fundraising efforts. Beyond September 30, 2013, if the Company cannot raise capital by the existing equity fundraising effort, it may need to raise additional capital through a debt financing or use capital provided by its parent to meet its operating and capital needs. There can be no assurance, however, that the Company will be successful in these fund-raising efforts or that additional funds will be available on acceptable terms, if at all.

Since its inception to September 30, 2012, the Company has raised a total of $3,511,000 through various private placements of Common Stock. If the Company is unable to raise additional capital, the Company may need to terminate certain of its employees and adjust its current business plan. Financial considerations may cause the Company to modify planned deployment of new energy systems and the Company may decide to suspend installations until it is able to secure additional working capital. The Company will evaluate possible acquisitions of, or investments in, businesses, technologies and products that are complementary to its business; however, the Company is not currently engaged in such discussions.

The following significant accounting policies are either currently in effect or are anticipated to become effective as the Company commences its normal business activities.

Foreign Currency Transactions and Translations Policy [Policy Text Block]

Foreign Currency Transactions

The functional currency and the reporting currency of the Company are the U.S. dollar. Transactions denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the date of the transactions. Exchange gains or losses on transactions are included in the Condensed Consolidated Statement of Operations.

Use of Estimates, Policy [Policy Text Block]

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Revenue Recognition, Policy [Policy Text Block]

Revenue Recognition

Revenue from energy contracts will be recognized when electricity, heat, and chilled water is produced by the cogeneration systems on-site. The Company expects to bill each month based on various meter readings installed at each site. The amount of energy produced by on-site energy systems will be invoiced, as determined by a contractually defined formula. Under certain energy contracts, the customer will directly acquire the fuel to power the systems and will receive credit for that expense from the Company. The credit will be recorded as reduction of revenue.

As a by-product of the energy business, in some cases, the customer may choose to have the Company construct the system for them rather than have it owned by the Company. In this case, the Company will account for revenue, or turnkey revenue, and costs using the percentage-of-completion method of accounting. Under the percentage-of-completion method of accounting, revenues are recognized by applying percentages of completion to the total estimated revenues for the respective contracts. Costs will be recognized as incurred. The percentages of completion are determined by relating the actual cost of work performed to date to the current estimated total cost at completion of the respective contracts. When the estimate on a contract indicates a loss, the Company’s policy will be to record the entire expected loss, regardless of the percentage of completion. The excess of contract costs and profit recognized to date on the percentage-of-completion accounting method in excess of billings will be recorded as unbilled revenue. Billings in excess of related costs and estimated earnings will be recorded as deferred revenue.

Customers may buy out their long-term obligation under energy contracts and purchase the underlying equipment from the Company. Any resulting gain on these transactions will be recognized over the payment period in the consolidated statements of operations. Revenues from operations, including shared savings will be recorded when provided and verified. Maintenance service revenue will be recognized over the term of the agreement and will be billed on a monthly basis in arrears. The Company had no such arrangements to date.

Occasionally the Company will enter into a sales arrangement with a customer to construct and sell an energy system and provide energy and maintenance services over the term of the contract. Based on the fact that the Company will sell each deliverable to other customers on a stand-alone basis, the Company will determine that each deliverable has a stand-alone value. Additionally, there are no rights of return relative to the delivered items; therefore, each deliverable will be considered a separate unit of accounting. Revenue will be allocated to each element based upon its relative fair value which is determined based on the estimated price of the deliverables when sold on a standalone basis. Revenue related to the construction of the energy system will be recognized using the percentage-of-completion method as the unit is being constructed. Revenue from the sale of energy will be recognized when electricity, heat, and chilled water is produced by the energy system, and revenue from maintenance services is recognized over the term of the maintenance agreement. The Company had no such arrangements to date.

The Company may be able to participate in the demand response market and receive payments due to the availability of its energy systems. Demand response programs provide payments for either the reduction of electricity usage or the increase in electricity production during periods of peak usage throughout a utility territory. The Company had not recognized revenue from demand response activity to date.

Other revenue represents various types of ancillary activities for which the Company expects to engage in from time to time such as the sale of equipment, construction work, engineering work and feasibility studies.

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash and Cash Equivalents

The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents.

Concentration Of Credit Risk [Policy Text Block]

Concentration of Credit Risk

Financial instruments which potentially subject the Company to concentrations of credit risk consist of highly liquid cash equivalents. The Company has cash balances in certain financial institutions in amounts which occasionally exceed current federal deposit insurance limits. The financial stability of these institutions is continually reviewed by senior management. As of September 30, 2012, the Company had a balance of $771,087 in cash and cash equivalents. The Company believes it is not exposed to any significant credit risk on cash and cash equivalents.

Trade and Other Accounts Receivable, Policy [Policy Text Block]

Accounts Receivable

The Company maintains receivable balances with its customers. The Company reviews its customers’ credit history before extending credit and generally does not require collateral. An allowance for doubtful accounts is established based upon factors surrounding the credit risk of specific customers, historical trends and other information. Bad debts are written off when identified by management. At September 30, 2012, and December 31, 2011, the allowance for doubtful accounts was $0 and $0, respectively.

Inventory, Policy [Policy Text Block]

Inventory

Inventories are stated at the lower of cost or market, valued on a first-in, first-out basis. Inventory is reviewed periodically for slow-moving and obsolete items.

Supply Concentrations [Policy Text Block]

Supply Concentrations

All of the Company’s cogeneration unit purchases for the periods ending September 30, 2012 and 2011, respectively, were from one vendor (see “Note 5 - Related parties”). The Company believes there are sufficient alternative vendors available to ensure a constant supply of cogeneration units on comparable terms. However, in the event of a change in suppliers, there could be a delay in obtaining units which could result in a temporary slowdown of installing additional income producing sites. The Company believes there are sufficient alternative vendors available to ensure a constant supply of maintenance and installation services on comparable terms. However, in the event of a change of vendor, there could be a delay in installation or maintenance services.

Property, Plant and Equipment, Policy [Policy Text Block]

Property Plant and Equipment

Property and equipment are stated at cost. Depreciation and amortization are computed using the straight-line method at rates sufficient to write off the cost of the applicable assets over their estimated useful lives. Repairs and maintenance are expensed as incurred.

The Company will evaluate the recoverability of its long-lived assets by comparing the net book value of the assets to the estimated future undiscounted cash flows attributable to such assets. The useful life of the Company’s energy systems will be the lesser of the economic life of the asset or the term of the underlying contract with the customer, typically 12 to 15 years. The Company will review the useful life of its energy systems on a quarterly basis or whenever events or changes in business circumstances indicate that the carrying value of the assets may not be fully recoverable or that the useful lives of the assets will no longer be appropriate. If impairment is indicated, the asset will be written down to its estimated fair value based on a discounted cash flow analysis.

Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]

Stock-Based Compensation

Stock-based compensation cost is measured at the grant date based on the estimated fair value of the award and is recognized as an expense in the consolidated statements of operations over the requisite service period. The fair value of stock options granted is estimated using the Black-Scholes option pricing valuation model. The Company recognizes compensation on a straight-line basis for each separately vesting portion of the option award. Use of a valuation model requires management to make certain assumptions with respect to selected model inputs. Expected volatility was calculated based on the average volatility of 5 companies in the same industry as the Company. The average expected life is estimated using the simplified method for “plain vanilla” options. The simplified method determines the expected life in years based on the vesting period and contractual terms as set forth when the award is made. The risk-free interest rate is based on United States Treasury zero-coupon issues with a remaining term which approximates the expected life assumed at the date of grant. When options are exercised the Company normally issues new shares.

See “Note 3 – Stockholders’ equity” for a summary of the stock option activity under our 2011 Stock Incentive Plan, as amended, and the UK Sub-Plan for the periods ending September 30, 2012 and 2011, respectively.

Earnings Per Share, Policy [Policy Text Block]

Loss per Common Share

The Company computes basic loss per share by dividing net loss for the period by the weighted-average number of shares of Common Stock outstanding during the period. The Company computes its diluted earnings per common share using the treasury stock method. For purposes of calculating diluted earnings per share, the Company considers its shares issuable in connection with stock options and warrants to be dilutive Common Stock equivalents when the exercise price is less than the average fair market value of the Company’s Common Stock for the period.

Other Comprehensive Net Loss [Policy Text Block]

Other Comprehensive Net Loss

The comprehensive net loss for the periods ending September 30, 2012 and 2011, respectively, does not differ from the reported loss.

Income Tax, Policy [Policy Text Block]

Income Taxes

As part of the process of preparing its consolidated financial statements, the Company is required to estimate its income taxes in each of the jurisdictions in which the Company operates. This process involves the Company estimating its actual current tax exposure together with assessing temporary differences resulting from differing treatment of items, such as depreciation and certain accrued liabilities for tax and accounting purposes. These differences result in deferred tax assets and liabilities, which are included within the Company’s consolidated balance sheets. The Company must then assess the likelihood that its deferred tax assets will be recovered from future taxable income and to the extent the Company believes that recovery is not likely, the Company must establish a valuation allowance.

The Company uses a comprehensive model for the recognition, measurement and financial statement disclosure of uncertain tax positions. Unrecognized benefits are the differences between tax positions taken, or expected to be taken in tax returns and the benefits recognized for accounting purposes.

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Stockholders' equity (Tables)

9 Months Ended

Sep. 30, 2012

Stockholders Equity Note [Abstract]

Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]

Stock option activity as of and for the nine month period ending September 30, 2012 was as follows:

Common Stock Options	Number of Options		Exercise Price Per Share		Weighted Average Exercise Price		Weighted Average Remaining Life	Aggregate Intrinsic Value
Outstanding, December 31, 2011	3,600,000		$	0.90	$	0.90	9.34 years	—
Granted	—		—		—
Exercised	—		—		—
Canceled	(10,000	)	0.90		0.90
Expired	—		—		—
Outstanding, September 30, 2012	3,590,000		$	0.90	$	0.90	8.59 years	$	11,129,000
Exercisable, September 30, 2012	597,500				$	0.90		$	1,852,250
Vested and expected to vest, September 30, 2012	3,590,000				$	0.90		$	11,129,000

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Description of business and summary of significant accounting policies (Details Textual) (USD $)	9 Months Ended	27 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2012	Dec. 31, 2011	Sep. 30, 2012 Minimum [Member]	Sep. 30, 2012 Maximum [Member]	Jul. 11, 2012 Common Stock and Warrant [Member]	Jul. 09, 2010 Investments In Majority-Owned Subsidiaries [Member] American DG [Member]	Jul. 09, 2010 Investments In Majority-Owned Subsidiaries [Member] Nettlestone Enterprises [Member]
Entity Incorporation, Date Of Incorporation	Jul. 09, 2010
Investments							$ 45,000	$ 5,000
Shares Exchanged							45,000,000	5,000,000
Noncontrolling Interest, Ownership Percentage by Parent	82.80%	82.80%
Retained Earnings (Accumulated Deficit)	2,692,643	2,692,643	1,421,227
Proceeds from Issuance of Private Placement		3,511,000
Cash, Cash Equivalents, and Short-term Investments	771,087	771,087
Allowance for Doubtful Accounts Receivable	$ 0	$ 0	$ 0
Common stock, shares authorized	100,000,000	100,000,000	100,000,000			15,000,000
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001	$ 0.001			$ 1.00	$ 0.001
Property, Plant and Equipment, Useful Life				12 years	15 years

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Related parties (Details Textual) (USD $)	9 Months Ended	12 Months Ended
	Sep. 30, 2012	Dec. 31, 2011
Related Party Transaction, Description of Transaction	"American DG Energy, GlenRose Instruments Inc., or GlenRose Instruments, Tecogen Inc., or Tecogen, and Ilios Inc., or Ilios, are affiliated companies by virtue of common ownership. Specifically, John N. Hatsopoulos who is the Chairman of the Company is: (a) the Chief Executive Officer and director of American DG Energy and holds 11.9% of the company''''s common stock, (b) the Chief Executive Officer and director of Tecogen and holds 27.4% of the company''''s common stock, (c) a director of Ilios and holds 7.3% of the company''''s common stock, and (d) the Chairman of GlenRose Instruments and holds 15.7% of the company''''s common stock. Dr. George N. Hatsopoulos, who is John N. Hatsopoulos'''' brother, is: (a) a director of American DG Energy and holds 14.5% of the company''''s common stock, (b) a director of Tecogen and holds 26.0% of the company''''s common stock, (c) an investor in Ilios and holds 2.9% of the company''''s common stock and (d) an investor of GlenRose Instruments and holds 15.7% of the company''''s common stock."
Inventory	$ 198,439	$ 137,976
Lease Expiration Date	Mar. 31, 2014
Chief Financial Officer [Member]
Percentage Of Time Spent By Related Parties	15.00%
Hourly Rate Of Salary Expenditure Reimbursed	108
Board Of Directors Chairman [Member]
Purchase Of Shares From Accredited Investor One		25,000
Purchase Of Shares From Accredited Investor Two		25,000
Common Stock Share Purchase Price		$ 1
Officers' Compensation	1
Percentage Of Time Spent By Related Parties	20.00%
Chief Executive Officer [Member]
Percentage Of Time Spent By Related Parties	25.00%
Hourly Rate Of Salary Expenditure Reimbursed	$ 119
Parent Company [Member]
Percentage Of Shares	82.80%

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (1,271,416)	$ (851,966)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	4,261	0
Stock-based compensation	374,014	321,951
Changes in operating assets and liabilities
Accounts receivable	(24,457)	0
Value added tax receivable	15,775	(65,270)
Inventory	(60,463)	(10,330)
Prepaid and other current assets	(4,656)	(7,667)
Increase (decrease) in:
Accounts payable	213,743	119,040
Due to related party	82,014	(99,567)
Accrued expenses and other current liabilities	(11,955)	76,100
Net cash used in operating activities	(683,140)	(517,709)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(884,556)	(3,952)
Net cash used in investing activities	(884,556)	(3,952)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from sale of common stock, net of costs	0	1,148,401
Net cash provided by financing activities	0	1,148,401
Net (decrease) increase in cash and cash equivalents	(1,567,696)	626,740
Cash and cash equivalents, beginning of the period	2,338,783	2,234,551
Cash and cash equivalents, end of the period	$ 771,087	$ 2,861,291

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Related parties

9 Months Ended

Sep. 30, 2012

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

Note 5 — Related parties:

The Company expects to purchase the majority of its energy equipment from American DG Energy, its parent. American DG Energy owns an 82.8% of the Common Stock of the Company. American DG Energy purchases energy equipment primarily from Tecogen, an affiliate of the Company, which manufactures natural gas, engine-driven commercial and industrial cooling and cogeneration systems, and from Ilios Inc., or Ilios, a majority owned subsidiary of Tecogen which is developing a line of ultra-high-efficiency heating products, such as a high efficiency water heater, that provides twice the efficiency of conventional boilers, based on management estimates, for commercial and industrial applications utilizing advanced thermodynamic principles.

American DG Energy, GlenRose Instruments Inc., or GlenRose Instruments, Tecogen Inc., or Tecogen, and Ilios Inc., or Ilios, are affiliated companies by virtue of common ownership. Specifically, John N. Hatsopoulos who is the Chairman of the Company is: (a) the Chief Executive Officer and director of American DG Energy and holds 11.9% of the company’s common stock, (b) the Chief Executive Officer and director of Tecogen and holds 27.4% of the company’s common stock, (c) a director of Ilios and holds 7.3% of the company’s common stock, and (d) the Chairman of GlenRose Instruments and holds 15.7% of the company’s common stock. Dr. George N. Hatsopoulos, who is John N. Hatsopoulos’ brother, is: (a) a director of American DG Energy and holds 14.5% of the company’s common stock, (b) a director of Tecogen and holds 26.0% of the company’s common stock, (c) an investor in Ilios and holds 2.9% of the company’s common stock and (d) an investor of GlenRose Instruments and holds 15.7% of the company’s common stock.

American DG Energy signed a Facilities and Support Services Agreement with Tecogen on July 1, 2012. The term of the agreement commences as of the start of each year and certain portions of the agreement, including office space allocation, get renewed annually upon mutual written agreement.

On October 20, 2009, American DG Energy, in the ordinary course of its business, signed a Sales Representative Agreement with Ilios to promote, sell and service the Ilios high-efficiency heating products, such as the high efficiency water heater, in the marketing territory of the New England states, including Connecticut, Rhode Island, Massachusetts, New Hampshire, Vermont, and Maine. The marketing territory also includes all of the nations in the European Union. The initial term of this Agreement is for five years, after which it may be renewed for successive one-year terms upon mutual written agreement.

The Company purchases energy systems from American DG Energy and ships them to the United Kingdom. At September 30, 2012 and December 31, 2011, the Company had an inventory balance of $198,439 and $137,976, respectively, consisting of energy systems purchased from American DG Energy.

On February 22, 2011, John N. Hatsopoulos, the Company’s Chairman of the Board, purchased 25,000 shares of the Company’s Common Stock from an accredited investor at a price of $1.00 per share and George N. Hatsopoulos purchased 25,000 shares of the Company’s Common Stock from the same accredited investor at a price of $1.00 per share.

John N. Hatsopoulos is the Company’s Chairman of the Board and is also the Chief Executive Officer of American DG Energy and Tecogen, and the Chairman of GlenRose Instruments. His salary is $1.00 per year. On average, Mr. Hatsopoulos spends approximately 20% of his business time on the affairs of the Company, but such amount varies widely depending on the needs of the business and is expected to increase as the business of the Company develops.

Barry J. Sanders, the Company’s Chief Executive Officer, is also the President and Chief Operating Officer of American DG Energy and devotes part of his business time to the affairs of American DG Energy. His salary is paid by American DG Energy but a portion is reimbursed by the Company according to the requirements of the business in a given week at a fully burdened hourly rate of $119. On average, Mr. Sanders spends approximately 25% of his business time on the affairs of the Company, but such amount varies widely depending on the needs of the business and is expected to increase as the business of the Company develops.

Anthony S. Loumidis, the Company’s Chief Financial Officer, devotes part of his business time to the affairs of American DG Energy, GlenRose Instruments, Tecogen and Ilios. His salary is paid by American DG Energy but a portion is reimbursed by GlenRose Instruments and by the Company according to the requirements of the business in a given week at a fully burdened hourly rate of $108. On average, Mr. Loumidis spends approximately 15% of his business time on the affairs of the Company, but such amount varies widely depending on the needs of the business and is expected to increase as the business of the Company develops.

The Company’s headquarters are located in Waltham, Massachusetts and consist of 3,071 square feet of office and storage space that are leased from Tecogen and shared with American DG Energy. The lease expires on March 31, 2014. American DG Energy is currently charging the Company for utilizing its share of office space in the United States through an intercompany service charge. The Company also occupies a small office space in the United Kingdom. The Company believes that its facilities are appropriate and adequate for its current needs.

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Earnings per share (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Earnings per share
Loss available to stockholders	$ (383,253)	$ (531,850)	$ (1,271,416)	$ (851,966)
Weighted average shares outstanding - Basic and diluted (in shares)	54,362,100	54,362,100	54,362,100	53,982,796
Basic and diluted loss per share (in dollars per share)	$ (0.01)	$ (0.01)	$ (0.02)	$ (0.02)
Anti-dilutive shares underlying warrants outstanding (in shares)	0	400,000	0	400,000
Anti-dilutive shares underlying stock options outstanding (in shares)	3,590,000	2,400,000	3,590,000	2,400,000