PINELLAS PARK — The financial tides have turned for Pinellas Park-based Taronis Technologies, CEO Scott Mahoney said on an investors call Monday.
Earlier this year, the alternative fuel company was at risk of being removed from Nasdaq stock exchange because of its low share price and fighting to continue operating through the end of the year. But now, in the company's third quarter, Mahoney is optimistic.
"We have cash on hand," he said. "We are essentially profitable."
According to Mahoney, the company currently has $5 million in cash and just $750,000 in liabilities, a far cry from the $356,500 in cash as of March and a net loss of $6.1 million for the year's first quarter. The company has not yet filed its financial statement for the third quarter.
Taronis is best known for its metal-cutting fuel called MagneGas, which was previously the company name. It expects in the near future to spin off a company called Taronis Fuels Inc., which will encompass the fuel portion of its business. Taronis is about to double its MagneGas production capacity with a new machine in Flint, Texas. Currently, the company has two "plasma arc" units, which produce MagneGas, in Clearwater. The Texas plant will handle production for its California market before the company opens a new location in Sacramento, Calif. early next year.
The company is also opening a MagneGas facility in Amsterdam shortly.
"That's the market we want to take from the competitors," Mahoney said.
Asked by an investor whether MagneGas would be available for home use at any point, Mahoney deflected, saying that the cost of producing the gas is currently "on par with propane."
"We absolutely want to sell 10 different kinds of MagneGas," he said. "We will call one a propane substitute."
MagneGas was involved in two explosions, one in 2015 and one in 2017, that each killed a worker handling the gas.
Mahoney said Taronis Fuels will be a public company that he hopes also will be listed on Nasdaq.
Taronis was threatened with being de-listed from Nasdaq because it failed to keep its share prices above $1 for 20 consecutive days. The alternative-fuel company, Mahoney said, now has until Sept. 19 to keep its share prices at or above $1 to maintain its listing. Nasdaq also asked the company's shareholders to vote on a reduction of available shares in the company, known as a "reverse split."
"If our share price satisfies the minimum compliance, management has no intention of doing a reverse split," Mahoney said.
Beyond fuel, Taronis is working to move into rehabilitating water bodies from invasive bacteria and cleaning water to remove agricultural waste.
As of the end of July, Ermanno Santilli, the company's former CEO who was ousted from his position as chief technology officer in June, resigned from the company's board.
"Thank you for the opportunity to serve on the board of directors," he said in a resignation letter.
Taronis shares were trading at about 47 cents mid-Tuesday.
Contact Malena Carollo at firstname.lastname@example.org or (727) 892-2249. Follow @malenacarollo.