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May 13 , 2021 Tecogen : Clean Energy Solutions Tecogen Announces First Quarter 2021 Results Net Income of $ 1.8 million due to PPP Loan Forgiveness , Reduced Operating Expenses , Improved Margins , and Positive Adjusted EBITDA WALTHAM , Mass . , May 13 , 2021 ( GLOBE NEWSWIRE ) -- via NewMediaWire -- Tecogen Inc. ( OTCQX : TGEN ) , a leading manufacturer of clean energy products , reported net income of $ 1.8 million for the quarter ended March 31 , 2021 compared to a net loss of $ 1.2 million in 2020. The increase in Net Income was primarily due to the forgiveness of our Paycheck Protection Program ( PPP ) loan , and to a lesser extent , from lower operating expenses and improved gross margins . Revenues for the quarter ended March 31 , 2021 were $ 6.1 million compared to $ 8.0 million for the same period in 2020 , a 23.9 % decrease . Product and services revenues , in aggregate , were down 25 % for the quarter compared to the same period in 2020 primarily due to lower cogeneration unit volume and decreased installation services revenues . Key Takeaways • Gross profit for the first quarter of 2021 was $ 3.0 million compared to $ 2.8 million in the first quarter of 2020. Gross margin improved to 48.7 % compared to 35.1 % for the same period in 2020 . • Operating expenses decreased by 21 % to $ 3.1 million for the first quarter of 2021 compared to $ 3.9 million in the same period of 2020 , primarily due to cost controls , resulting in decreases in payroll and payroll related expenses , lower legal fees and reduced sales commission compared to 2020 . • General and administrative expenses decreased 9 % to $ 2.5 million . Research and development costs decreased by 65 % to $ 126 thousand , and selling expenses decreased 40 % to $ 510 thousand . • Net income including the PPP forgiveness was $ 1.8 million for the first quarter of 2021 , compared to a net loss of $ 1.2 million for the same period in 2020 , an improvement of $ 3.0 million . After excluding a one - time gain from the forgiveness of our Paycheck Protection Program loan of $ 1.9 million , Adjusted EBITDA ( 1 ) was $ 20 thousand for the first quarter of 2021 compared to negative $ 817 thousand for the first quarter of 2020. ( 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 extinguishment of debt . See table following the 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 ) .