Taronis Technologies

US: TRNX

$12.7m market cap

$0.48 last close

Taronis is a technology company that has developed a plasma-based system for renewable fuel gasification and water decontamination. This process generates a hydrogen-based fuel called MagneGas as a by-product that is sold as an alternative metal-cutting fuel to acetylene.

Investment summary

Taronis’s FY18 results show the beneficial impact of the six acquisitions made during the year, with revenues more than doubling to $9.7m. Operating costs, including one-off acquisition costs, increased by $5.8m. Operating losses widened by $3.2m year-on-year to c $15.0m. Net debt at end FY18 was the same as end FY17 ($0.6m), as the company financed its losses and acquisition activity by drawing down Series C preferred stock ($18.9m net) and raising $8.7m (gross) from the issue of common stock in August and October. Further financing will be required if the company is to remain a going concern.

Y/E Dec
Revenue (US$m)
EBITDA (US$m)
PBT (US$m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2017A 3.7 (11.1) (11.0) (306.3) N/A N/A
2018A 9.7 (13.9) (15.1) (6.0) N/A N/A
2019E 23.4 (4.2) (6.0) (0.3) N/A N/A
2020E N/A N/A N/A N/A N/A N/A
Last updated on 23/05/2019
Industry outlook

Management completed this initial acquisition phase in Q119 with a further three acquisitions. This extended retail network generated $2.05m revenues in March. The focus is now on driving sales of proprietary MagneGas cutting fuel and improving profitability so that existing retail network can generate cash to finance further technology development.

Last updated on 23/05/2019
Sector
Industrials
Share price graph
Balance sheet
Forecast net cash (US$m) 10.2
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (19.1) (33.0) (95.6)
Relative* (15.9) (33.7) (95.7)
52-week high/low US$11.2/US$0.4
*% relative to local index
Key management
Scott Mahoney CFO