8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

__________________________

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of report: May 12, 2022

TECOGEN INC. (OTCQX: TGEN)

(Exact Name of Registrant as Specified in Charter)

Delaware

(State or Other Jurisdiction of Incorporation)

001-36103	04-3536131
(Commission File Number)	(IRS Employer Identification No.)
45 First Avenue
Waltham, Massachusetts	02451
(Address of Principal Executive Offices)	(Zip Code)

(781) 466-6400

(Registrant's telephone number, including area code)

_______________________________________________

Securities registered or to be registered pursuant to Section 12(b) of the Act.

Title of each class Trading Symbol Name of exchange on which registered

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Item 2.02. Results of Operations and Financial Condition.

On May 12, 2022, the registrant issued a press release with earnings commentary and supplemental information for the three months ended March 31, 2022. The press release is furnished as Exhibit 99.01 to this Current Report on Form 8-K.

The information in this Item 2.02 and Exhibit 99.01 to this Current Report on Form 8-K shall shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act or the Exchange Act, except as expressly set forth by specific reference in such a filing.

Item 7.01. Regulation FD Disclosure.

On May 12, 2022, the registrant will present the attached slides online in connection with an earnings conference call. The slides are being furnished as Exhibit 99.02 to this Current Report on Form 8-K.

The information in this Item 7.01 and Exhibit 99.02 to this Current Report on Form 8-K shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act or the Exchange Act, except as expressly set forth by specific reference in such a filing.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

The following exhibits relating to Items 2.02 and 7.01 shall be deemed to be furnished, and not filed:

Exhibit	Description
99.01	Earnings Release dated May 12, 2022 for the three months ended March 31, 2022
99.02	Tecogen Earnings Call Presentation dated May 12, 2022

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

	TECOGEN INC.
		By: /s/ Benjamin Locke
May 12, 2022		Benjamin Locke, Chief Executive Officer

EX-9.01

Tecogen Announces First Quarter 2022 Results

Revenues of $ 7.4 million, Positive Income from Operations and Net Income

WALTHAM, Mass., May 12, 2022 - Tecogen Inc. (OTCQX:TGEN), a leading manufacturer of clean energy products, reported revenues of $7.4 million and net income of $89 thousand for the quarter ended March 31, 2022 compared to revenues of $6.1 million, an improvement of $1.4 million, and a net profit of $1.8 million in 2021, a decrease of $1.7 million. The positive net income in Q1 2021 was primarily due to the benefit from the CARES Act payroll support programs. The company generated $1.9 million in cash from operations during the quarter and ended the quarter with a cash balance of $5.5 million.

Key Takeaways

Net Income and Earnings Per Share

•Net income in Q1 2022 was $89 thousand compared to $1.8 million in Q1 2021, a decrease of $1.7 million, primarily due to the forgiveness of the PPP loan in Q1 2021. EPS was $0.00/share and $0.07/share in Q1 2022 and Q1 2021, respectively.

Income from Operations

•Income from operations for the three months ended March 31, 2022 was $81 thousand compared to a loss of $139 thousand for the same period in 2021, an increase of $220 thousand. Our increased revenues combined with reduced operating costs resulted in positive income from operations.

Revenues

•Revenues for the quarter ended March 31, 2022 were $7.4 million compared to $6.1 million for the same period in 2021, a 22.8% increase.

◦Product revenue was $3.9 million in Q1 2022 compared to $2.1 million in the same period in 2021, an increase of 85.6%, primarily due to increased cogeneration and chiller unit volume. We continue to see sales into our key market segments including controlled environment agriculture.

◦Services revenue was $2.9 million in Q1 2022 compared to $3.3 million in the same period in 2021, a decline of 11.1%, primarily due to reduced lower margin installation activity. Services contract revenue increased 4.8% to $2.9 million compared to $2.8 million in the first quarter of 2021.

◦Energy Production revenue decreased 11.0%, to $582 thousand in Q1 2022 compared to $653 thousand in the same period in 2021 due to site closures as a result of COVID.

Gross Profit

•Gross profit for the first quarter of 2022 was $3.1 million compared to $3.0 million in the first quarter of 2021. Gross margin reduced to 41.6% in the first quarter compared to 48.7% for the same period in 2021 due to higher material costs reducing product margin from 44.7% to 32.9%. Services margin remained comparable quarter to quarter.

Operating Expenses

•Operating expenses decreased by 2.6% to $3.01 million for the first quarter of 2022 compared to $3.09 million in the same period in 2021 due to reduced external commissions and gains on the disposal of assets and corresponding reversal of the unfavorable contract liability associated with the asset.

Adjusted EBITDA(1) was a positive $154 thousand for the first quarter of 2022 compared to $20 thousand for the first quarter of 2021. (Adjusted EBITDA is defined as net income or loss attributable to Tecogen, adjusted for interest, income taxes, depreciation and amortization, stock-based compensation expense, unrealized gain or loss on equity securities, goodwill impairment charges and other non-cash non-recurring charges or gains including abandonment of intangible assets and the extinguishment of debt. See the table following the Condensed Consolidated Statements of Operations for a reconciliation from net income (loss) to Adjusted EBITDA, as well as important disclosures about the company's use of Adjusted EBITDA).

“We saw a substantial increase in revenues this quarter and were able to produce positive operating income and net income. However we saw a significant increase in cost of goods due to the inflationary environment we presently find ourselves in. We have instituted price increases and continue to execute on our strategy of focusing on clean cooling in our key market segments including controlled environment agriculture. Our Board has formed a special committee headed by our Board member Prof. Ahmed Ghoniem to determine how Tecogen can help reduce the environmental impact of agricultural food products by expanding the use of our systems in the controlled-environment growing segment” commented Benjamin Locke, Tecogen's Chief Executive Officer.

Conference Call Scheduled for May 12, 2022, at 11:00 am ET

Tecogen will host a conference call on May 12, 2022 to discuss the first quarter results beginning at 11:00 am eastern time. To listen to the call please dial (877) 407-7186 within the U.S. and Canada, or (201) 689-8052 from other international locations. Participants should ask to be joined to the Tecogen First Quarter 2022 earnings call. Please begin dialing 10 minutes before the scheduled starting time. The earnings press release will be available on the Company website at www.Tecogen.com in the "News and Events" section under "About Us." The earnings conference call will be webcast live. To view the associated slides, register for and listen to the webcast, go to https://ir.tecogen.com/ir-calendar. Following the call, the recording will be archived for 14 days.

The earnings conference call will be recorded and available for playback one hour after the end of the call. To listen to the playback, dial (877) 660-6853 within the U.S. and Canada, or (201) 612-7415 from other international locations and use Conference Call ID#: 13672659.

About Tecogen

Tecogen Inc. designs, manufactures, sells, installs, and maintains high efficiency, ultra-clean, cogeneration products including engine-driven combined heat and power, air conditioning systems, and high-efficiency water heaters for residential, commercial, recreational and industrial use. The company provides cost effective, environmentally friendly and reliable products for energy production that nearly eliminate criteria pollutants and significantly reduce a customer’s carbon footprint.

In business for over 35 years, Tecogen has shipped more than 3,000 units, supported by an established network of engineering, sales, and service personnel across the United States. For more information, please visit www.tecogen.com or contact us for a free Site Assessment.

Tecogen, InVerde e+, Ilios, Tecochill, Tecopower, Tecofrost, Tecopack and Ultera are registered trademarks of Tecogen Inc.

Forward Looking Statements

This press release and any accompanying documents, contain “forward-looking statements” which may describe strategies, goals, outlooks or other non-historical matters, or projected revenues, income, returns or other financial measures, that may include words such as "believe," "expect," "anticipate," "intend," "plan,"  "estimate," "project," "target," "potential," "will," "should," "could," "likely," or "may" and similar expressions intended to identify forward-looking statements. These statements are only predictions and involve known and unknown risks, uncertainties, and other factors that may cause our actual results to differ materially from those expressed or implied by such forward-looking statements. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Forward-looking statements speak only as of the date on which they are made, and we undertake no obligation to update or revise any forward-looking statements.

In addition to those factors described in our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q and on our Form 8-K, under “Risk Factors”, among the factors that could cause actual results to differ materially from past and projected future results are the following: fluctuations in demand for our products and services, competing technological developments, issues relating to research and development, the availability of incentives, rebates, and tax benefits relating to our products and services, changes in the regulatory environment relating to our products and services, integration of acquired business operations, and the ability to obtain financing on favorable terms to fund existing operations and anticipated growth.

In addition to GAAP financial measures, this press release includes certain non-GAAP financial measures, including adjusted EBITDA which excludes certain expenses as described in the presentation. We use Adjusted EBITDA as an internal measure of business operating performance and believe that the presentation of non-GAAP financial measures provides a meaningful perspective of the underlying operating performance of our current business and enables investors to better understand and evaluate our historical and prospective operating performance by eliminating items that vary from period to period without correlation to our core operating performance and highlights trends in our business that may not otherwise be apparent when relying solely on GAAP financial measures.

Tecogen Media & Investor Relations Contact Information:

Benjamin Locke

P: 781-466-6402

E: Benjamin.Locke@tecogen.com

TECOGEN INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)

	March 31, 2022		December 31, 2021
ASSETS
Current assets:
Cash and cash equivalents	$	5,460,870	$	3,614,463
Accounts receivable, net	7,631,611		8,482,286
Employee retention credit	1,276,021		1,276,021
Inventories, net	7,756,737		7,764,989
Unbilled revenue	2,906,931		3,258,189
Prepaid and other current assets	576,787		578,801
Total current assets	25,608,957		24,974,749
Long-term assets:
Property, plant and equipment, net	1,705,974		1,782,944
Right of use assets	1,716,737		1,869,210
Intangible assets, net	1,140,925		1,181,023
Goodwill	2,406,156		2,406,156
Other assets	185,222		148,140
TOTAL ASSETS	$	32,763,971	$	32,362,222
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	4,402,772		3,508,354
Accrued expenses	2,478,523		2,343,728
Deferred revenue	1,446,048		1,957,752
Lease obligations, current	653,176		641,002
Unfavorable contract liability, current	295,065		330,032
Total current liabilities	9,275,584		8,780,868
Long-term liabilities:
Deferred revenue, net of current portion	215,931		208,456
Lease obligations, net of current portion	1,147,982		1,315,275
Unfavorable contract liability, net of current portion	816,690		929,474
Total liabilities	11,456,187		11,234,073
Stockholders’ equity:
Tecogen Inc. shareholders’ equity:
Common stock, $0.001 par value; 100,000,000 shares authorized; 24,850,261 issued and outstanding at March 31, 2022 and December 31, 2021	24,850		24,850
Additional paid-in capital	57,112,566		57,016,859
Accumulated deficit	(35,744,212)		(35,833,621)
Total Tecogen Inc. stockholders’ equity	21,393,204		21,208,088
Non-controlling interest	(85,420)		(79,939)
Total stockholders’ equity	21,307,784		21,128,149
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	32,763,971	$	32,362,222

TECOGEN INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

	Three Months Ended
	March 31, 2022		March 31, 2021
Revenues
Products	$	3,939,481	$	2,122,722
Services	2,917,280		3,281,144
Energy production	581,562		653,295
Total revenues	7,438,323		6,057,161
Cost of sales
Products	2,644,756		1,174,287
Services	1,366,752		1,537,603
Energy production	336,027		394,063
Total cost of sales	4,347,535		3,105,953
Gross profit	3,090,788		2,951,208
Operating expenses
General and administrative	2,473,903		2,453,853
Selling	501,091		510,203
Research and Development	140,135		126,150
Gain on disposition of assets	(33,945)		—
Gain on termination of unfavorable contract liability	(71,375)		—
Total operating expenses	3,009,809		3,090,206
Income (loss) from operations	80,979		(138,998)
Other income (expense)
Other income (expense), net	(14,150)		(1,203)
Interest expense	(828)		(4,640)
Gain on extinguishment of debt	—		1,887,859
Gain on sale of investment securities	—		6,046
Unrealized gain on investment securities	37,497		37,497
Total other income (expense), net	22,519		1,925,559
Income before income taxes	103,498		1,786,561
Provision for state income taxes	3,930		8,058
Consolidated net income	99,568		1,778,503
Income attributable to the non-controlling interest	(10,159)		(11,796)
Net income attributable to Tecogen Inc.	$	89,409	$	1,766,707
Net income per share - basic	$	0.00	$	0.07
Net income per share - diluted	$	0.00	$	0.07
Weighted average shares outstanding - basic	24,850,261		24,850,261
Weighted average shares outstanding - diluted	25,028,616		25,122,271

	Three Months Ended
	March 31, 2022		March 31, 2021
Non-GAAP financial disclosure (1)
Net income attributable to Tecogen Inc.	$	89,409	$	1,766,707
Interest expense, net	828		5,843
Income taxes	3,930		8,058
Depreciation & amortization, net	107,061		124,066
EBITDA	201,228		1,904,674
Gain on extinguishment of debt	—		(1,887,859)
Gain on disposition of assets	(33,945)		—
Gain on termination of unfavorable contract liability	(71,375)		—
Impairment of intangible asset	—		7,400
Stock based compensation	95,707		39,085
Unrealized gain on investment securities	(37,497)		(37,497)
Gain on sale of investment securities	—		(6,046)
Adjusted EBITDA	$	154,118	$	19,757

(1) Non-GAAP Financial Measures

In addition to reporting net income, a U.S. generally accepted accounting principle (“GAAP”) measure, this news release contains information about Adjusted EBITDA (net income (loss) attributable to Tecogen Inc adjusted for interest, income taxes, depreciation and amortization, stock-based compensation expense, unrealized gain or loss on investment securities, goodwill impairment charges and other non-cash non-recurring charges including abandonment of certain intangible assets and extinguishment of debt), which is a non-GAAP measure.  The Company believes Adjusted EBITDA allows investors to view its performance in a manner similar to the methods used by management and provides additional insight into its operating results.  Adjusted EBITDA is not calculated through the application of GAAP.  Accordingly, it should not be considered as a substitute for the GAAP measure of net income and, therefore, should not be used in isolation of, but in conjunction with, the GAAP measure.  The use of any non-GAAP measure may produce results that vary from the GAAP measure and may not be comparable to a similarly defined non-GAAP measure used by other companies.

TECOGEN INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

	Three Months Ended
	March 31, 2022		March 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Consolidated net income	$	99,568	$	1,778,503
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	107,061		124,066
Gain on extinguishment of debt	—		(1,887,859)
Stock-based compensation	95,707		39,085
Gain on sale of investment securities	—		(6,046)
Unrealized gain on investment securities	(37,497)		(37,497)
Gain on disposition of assets	(33,945)		—
Gain on termination of unfavorable contract liability	(71,375)		—
Impairment of intangible asset	—		7,400
Changes in operating assets and liabilities
(Increase) decrease in:
Accounts receivable	850,674		638,643
Inventory	8,252		326,655
Prepaid assets and other current assets	2,014		17,307
Other assets	152,888		(583,419)
Increase (decrease) in:
Accounts payable	894,418		(799,615)
Accrued expenses and other current liabilities	134,795		153,225
Deferred revenue	(504,229)		(97,937)
Other liabilities	(155,119)		574,447
Net cash provided by operating activities	1,894,471		369,772
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(80,873)		(16,098)
Proceeds from disposition of assets	64,669		—
Proceeds from the sale of investment securities	—		11,637
Purchases of intangible assets	(16,220)		(5,682)
Distributions to non-controlling interest	(15,640)		(18,176)
Net cash used in investing activities	(48,064)		(28,319)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from note payable	—		1,874,269
Net cash provided by financing activities	—		1,874,269
Net increase in cash and cash equivalents	1,846,407		2,215,722
Cash and cash equivalents, beginning of the period	3,614,463		1,490,219
Cash and cash equivalents, end of the period	$	5,460,870	$	3,705,941

EX-9.02

OTCQX: TGEN MAY 12, 2022 Q1 2022 EARNINGS CALL 1

MANAGEMENT Benjamin Locke - CEO Robert Panora – COO & President Abinand Rangesh – CFO & Treasurer Jack Whiting – General Counsel & Secretary 2

SAFE HARBOR STATEMENT This presentation and accompanying documents contain “forward-looking statements” which may describe strategies, goals, outlooks or other non- historical matters, or projected revenues, Income, returns or other financial measures, that may include words such as "believe," "expect," "anticipate," "intend," "plan," "estimate," "project," "target," "potential," "will," "should," "could," "likely," or "may" and similar expressions intended to identify forward-looking statements. These statements are only predictions and involve known and unknown risks, uncertainties, and other factors that may cause our actual results to differ materially from those expressed or implied by such forward-looking statements. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Forward-looking statements speak only as of the date on which they are made, and we undertake no obligation to update or revise any forward-looking statements. In addition to those factors described in our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q under “Risk Factors”, among the factors that could cause actual results to differ materially from past and projected future results are the following: fluctuations in demand for our products and services, competing technological developments, issues relating to research and development, the availability of incentives, rebates, and tax benefits relating to our products and services, changes in the regulatory environment relating to our products and services, integration of acquired business operations, and the ability to obtain financing on favorable terms to fund existing operations and anticipated growth. In addition to GAAP financial measures, this presentation includes certain non-GAAP financial measures, including adjusted EBITDA which excludes certain expenses as described in the presentation. We use Adjusted EBITDA as an internal measure of business operating performance and believe that the presentation of non-GAAP financial measures provides a meaningful perspective of the underlying operating performance of our current business and enables investors to better understand and evaluate our historical and prospective operating performance by eliminating items that vary from period to period without correlation to our core operating performance and highlights trends in our business that may not otherwise be apparent when relying solely on GAAP financial measures. 3

AGENDA Tecogen Overview 1Q 2022 Results Earnings Takeaways Market Update Q&A 4

Providing resiliency and energy savings with a cleaner environmental footprint Units Shipped 5

DISTRIBUTED GENERATION CLEAN COOLING Chillers with lower operating cost and lower greenhouse gas footprint compared to an equivalent electric chiller EMISSIONS 3rd in number of microgrids installed in North America Near zero NOx and CO emissions systems for gasoline, propane and natural gas engines 6

PRODUCT RUN HOURS DISTRIBUTED GENERATION AND CHILLERS SHIPPED 52M+3,000+ KWH GENERATED 2.1M+ METRIC TONS OF CO2 SAVED 200,000+ FACTS ABOUT US 7

REVENUE SEGMENTS We service most purchased Tecogen equipment in operation through long term maintenance agreements through 11 service centers in North America and perform certain equipment installation work. SERVICES CLEAN, GREEN POWER, COOLING AND HEAT Sales of combined heat and power, and clean cooling systems to building owners. Key market segments include multifamily residential, health care and indoor cultivation. PRODUCT SALES We sell electrical energy and thermal energy produced by our equipment onsite at customer facilities. ENERGY SALES 8

$ in thousands 1Q' 22 1Q' 21 Change % Revenue Products $ 3,939 $ 2,123 $ 1,817 Service 2,917 3,281 (364) Energy Production 582 653 (72) Total Revenue 7,438 6,057 1,381 22.8% Gross Profit Products 1,295 948 346 Service 1,551 1,744 (193) Energy Production 246 259 (14) Total Gross Profit 3,091 2,951 140 4.7% Gross Margin: % Products 33% 45% -12% Service 53% 53% 0% Energy Production 42% 40% 3% Total Gross Margin 42% 49% -7% Operating Expenses General & administrative 2,474 2,454 20 Selling 501 510 (9) Research and development 140 126 14 Impairment and other expenses (105) - (105) Total operating expenses 3,010 3,090 (80) -2.6% Operating profit (loss) 81 (139) 220 158.3% Net Income $ 89 $ 1,767 $ (1,677) -94.9% 1Q 2022 RESULTS Highlights • Net Income of $0/share Q1 2022 • Net Income $89k • Cash and equivalents balance of $5.5 million Revenue = $7.44 million • Compared to $6.06 million in 1Q ’21, 23% increase • Service down due to lower installation activity Gross Margin of 42% due to higher cost of material Op Ex = $3.01 million Operating Income positive = $81k • Vs. loss of $139k in Q1 ‘21 Net Income of $89k 9

1Q 2022 ADJUSTED EBITDA RECONCILIATION EBITDA: Earnings Before Interest, Taxes, Depreciation & Amortization EBITDA and adjusted EBITDA were both positive at $201k and $154k respectively EBITDA Non-cash adjustments • Stock based compensation • Unrealized and realized (gain) loss on investment securities • Non-recurring asset disposal gains *Adjusted EBITDA is defined as net Income (loss) attributable to Tecogen Inc, adjusted for interest, depreciation and amortization, stock-based compensation expense, unrealized loss on investment securities, non-cash abandonment of intangible assets, goodwill impairment and other non-recurring charges or gains including abandonment of certain intangible assets and extinguishment of debt 10 Non-GAAP financial disclosure (in thousands) 2022 2021 Net income (loss) attributable to Tecogen Inc. 89$ 1,767$ Interest expense, net 1 6 Income tax expense 4 8 Depreciation & amortization, net 107 124 EBITDA 201 1,905 Gain on extinguishment of debt - (1,888) Stock based compensation 96 39 Unrealized (gain) loss on marketable securities (37) (37) Realized gain on sale of marketable securities - (6) Abandonment of intangible assets - 7 Gain on disposition of assets (34) - Gain on termination of unfavorable contract liability (71) - Adjusted EBITDA* 154$ 20$ Quarter Ended, March 31

1Q 22 PERFORMANCE BY SEGMENT Product Revenue increased 86% QoQ • Significant increase in cogeneration revenues • 10% gain in chiller revenues Service Revenue declined 11% QoQ • Installation services down 96% QoQ • Service contracts (O&M) up 5% QoQ • Services Gross Margin at 53% Energy Production Revenue decreased 11% QoQ Gross Margin 42% 11 1Q 2022 Revenues ($ thousands) 1Q' 2022 1Q' 2021 Change % Revenues Cogeneration 2,174$ 47$ 4526% Chiller 1,607 1,457 10% Engineered accessories 158 619 -74% Total Product Revenues 3,939 2,123 86% Service Contracts 2,897 2,763 5% Installation Services 20 518 -96% Total Service Revenues 2,917 3,281 -11% Energy Production 582 653 -11% Total Revenues 7,438 6,057 23% Cost of Sales Products 2,645 1,174 125% Services 1,367 1,538 -11% Energy Production 336 394 -15% Total Cost of Sales 4,348 3,106 40% Gross Profit 3,091 2,951 5% Net income (loss) 89$ 1,767$ Gross Margin Products 33% 45% Services 53% 53% Energy Production 42% 40% Overall 42% 49% Gross Margin 2022 2021 Target Overall 42% 49% >40%

1Q’ 22 EARNINGS TAKEAWAYS Business Segments Recovering from COVID Challenges • Q1 Product Revenue $3.9 mm • Q1 ending backlog of $9.4 million. Current backlog at $9.2 million • Continued penetration into cannabis and controlled environment agriculture markets • Signed up new reps and sales partnership agreements for chillers to focus on key cooling market segments Consistent Growth in Service O&M Segment • Service O&M up 5% QoQ • Q1’ 22 Service Gross Margin 53% Sustainable Corporate Improvements • Continue to focus on improvements in supply chain and cost of materials Strong Cash Position • Quarter-end cash and equivalent balance of $5.5 million • Expect ERC cash ($564k received in April, $712k in process) 12 Multi-Family Residential 20% Controlled Environment Agriculture 30% Hotel 13% Other 35% Healthcare 2% Backlog by Customer Type

MARKET UPDATE: IMPACT OF GAS PRICES Electrical Capacity Constraints Nationwide Improved ROI as electricity prices increase Electrical production predominantly fossil fuel based in USA so as gas prices rise, electricity prices rise Presently we have seen electricity prices rise 20% or more in CA, NY and some key markets 13

PATHWAY TO GROWTH Tecochill Hybrid Drive Air-Cooled Chiller to be launched at AHR in Feb 2023. This addresses a gap in our Tecochill offering as air-cooled chillers are typically sold in larger volumes compared to water cooled chillers in our size range. Focus on Clean Cooling applications where there is a simultaneous cooling and dehumidification load. Continue to increase market share in regional cannabis markets including New England, Mid-Atlantic and Florida with a goal to have a minimum of 30% market share per state in facilities > 10,000 sq feet. Clean Microgrids using CHP in combination with other energy technologies including solar and battery 14 Special Board Committee formed to investigate expanded business opportunities for Controlled Environment Agriculture.

Q&A Company Information Tecogen, Inc 45 First Ave Waltham, MA 02451 www.Tecogen.com Contact information Benjamin Locke, CEO 781.466.6402 Benjamin.Locke@Tecogen.com 15