COLUMBIA, Md., Nov. 13 /PRNewswire-FirstCall/ -- Renewable fuels provider New Generation Biofuels Holdings, Inc. (Nasdaq: NGBF) ("NGBF" or the "Company") today announced its financial results for the quarter ended September 30, 2009.

Third Quarter Financial Results

New Generation Biofuels reported revenues of $34,412 for the most recent quarter, consisting of additional shipments of fuel under customer contracts. The Company recognized a net loss of $2.3 million for the three months ended September 30, 2009, substantially unchanged from the $2.4 million net loss for the three months ended September 30, 2008. For the first nine months of 2009, the Company had net revenues of $77,048, and a net loss of $9.7 million. The Company was still in the development stage during 2008, and during the first nine months of 2008 had a net loss of $7.4 million.

As of September 30th, the Company had cash on hand of approximately $1.3 million. Net cash used in operating activities was $5.2 million for the nine months ended September 2009, compared to $4.4 million in last year's comparable period.

Year-to-date Highlights and Accomplishments

• Completed construction of first commercial-scale plant in Baltimore with an initial 5 million gallons per year capacity.
• Signed 7 sales contracts for potential customer orders of over 10 million gallons on an annual basis
• Completed 28 production runs at our Baltimore facility.
• Produced and delivered 140,000 gallons of biofuel to customers.
• Streamlined and reduced operating costs by moving our headquarters to Columbia, Maryland, closer to our biofuel production facility.
• Blended our biofuel with #6 Diesel fuel to diversify our product applications and expand our potential markets.
• Executed non-binding Letters of Intent (LOI) under which businesses in Costa Rica, Puerto Rico and Canada are evaluating licensing our technology with the intent of constructing biofuel manufacturing facilities and marketing NGBF biofuel. These LOIs contemplate payment to NGBF of a fee per gallon of fuel produced and sold.
• Raised $6.4 million in gross proceeds, and $5.8 million in net proceeds, through two common stock equity offerings, providing the Company with additional capital to fund our business plans.
• Expanded our license agreement with PTJ Bioenergy Holdings Ltd., or PTJ, the licensor of NGBF's renewable biofuel technology, to capture a cross-licensing royalty equal 5% of PTJ's revenues outside of our territory, which includes North America, Central America and the Caribbean and a 5% sales commission payable by PTJ to us if we introduce PTJ to a potential customer or otherwise substantially assist PTJ in the making of any sale outside of our territory.
  

"I am very pleased with the progress New Generation has made over the past two quarters as we focused the business on sales growth and cost control. I am particularly enthusiastic about the demand that we've experienced for our product since we opened our production facility in Baltimore, having signed seven contracts and received several repeat orders from these customers after burning our fuel. We are focused on executing our business plan as we continue to transition the business from a development stage enterprise to a commercial business." said Cary J. Claiborne, President and Chief Executive Officer of New Generation. "We are focused on continuing to optimize our production process and expand the number of feedstocks that can be used to produce our fuels, providing more diverse product applications, such as blending with #6 Diesel, to new and existing customers."

Webcast and Conference Call

The Company has scheduled a webcast and conference call to discuss its financial results today, November 13, 2009 at 11:00 AM Eastern. To access the webcast, visit the Investor Relations section of the company's website at http://www.newgenerationbiofuels.com/investor-relations.php. Interested parties may participate in the conference call by dialing 877-941-6011 (U.S. participants) or 1-480-248-5080 (international participants) 5-10 minutes prior to the start of the call.

A replay of the conference call will be available from 5:00 PM EST on November 13, 2009 through 11:59 PM EST on December 14, 2009 by dialing 800-406-7325, access code 4182697. To access a replay of the webcast, visit the Investor Relations section of the company's website at http://www.newgenerationbiofuels.com/investor-relations.php.

About New Generation Biofuels, Holdings, Inc.

New Generation Biofuels is a renewable fuels provider. New Generation Biofuels holds an exclusive license for North America, Central America and the Caribbean to commercialize proprietary technology to manufacture alternative biofuels from plant oils and animal fats that it markets as a new class of biofuel for power generation, commercial and industrial heating and marine use. The Company believes that its proprietary biofuel can provide a lower cost, renewable alternative energy source with significantly lower emissions than traditional fuels. New Generation Biofuels' business model calls for establishing direct sales from manufacturing plants that it may purchase or build and sublicensing its technology to qualified licensees.

Forward Looking Statements

This news release contains forward-looking statements. These forward-looking statements concern our operations, prospects, plans, economic performance and financial condition and are based largely on our current beliefs and expectations. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any future results expressed or implied by such forward-looking statements The risks and uncertainties related to our business include all the risks attendant a development stage business in the volatile energy industry, including, without limitation, the risks set forth under the caption "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2008 and in subsequent filings with the Securities and Exchange Commission.

    Media Contact: Phil Wallis ph: (321) 363-5113
    Or: pjwallis@newgenerationbiofuels.com

    IR Contact: John Baldissera ph: (800) 368-1217
    Or: Rob@wolfeaxelrod.com

                             FINANCIAL TABLES FOLLOW



                     NEW GENERATION BIOFUELS HOLDINGS, INC.
                          Consolidated Balance Sheets

                                                   September 30,  December 31,
                                                        2009           2008
    ASSETS                                           (unaudited)
     Current assets:
         Cash  and cash equivalents                   $1,300,728   $1,476,246
         Accounts receivable                              18,237       22,943
         Related party receivables                        77,820            -
         Inventory                                        11,708            -
         Prepaid expenses                                373,064      195,369
             Total current assets                      1,781,557    1,694,558

     Property and equipment - net                        914,150      378,946
     Other assets - net                                  390,452      392,208
     License agreement- net                            5,805,106    6,267,460
                                                       ---------    ---------
         TOTAL ASSETS                                 $8,891,265   $8,733,172
         ------------                                 ==========   ==========

     LIABILITIES AND STOCKHOLDER'S EQUITY
     ------------------------------------
     Current liabilities:
         Accounts payable and accrued expenses        $1,393,546   $1,385,311
         Loan payable-related party                       50,000       50,000
         License agreement payable-current portion
             (net of unamortized discount of
              $205,584 and $71,270)                      794,416      928,730
         Accrued dividend on preferred stock           1,068,388      765,369
             Total current liabilities                 3,306,350    3,129,410


     License agreement payable
             (net of unamortized discount of
              $991,126 and $1,464,132)                 3,008,874    3,535,868

             Total Liabilities                         6,315,224    6,665,278
                                                       ---------    ---------

     Stockholders' equity:
         Series A Cumulative Convertible Preferred
          Stock: $100 stated value, 300,000 shares
          authorized, 18,400 and 26,400 shares
          issued and outstanding as of September 30,
          2009 and December 31, 2008, respectively       710,970    1,020,087
         Series B Cumulative Convertible Preferred
          Stock: $100 stated value, 250,000 shares
          authorized, 53,660 and 72,126 shares
          issued and outstanding as of September 30,
          2009 and December 31, 2008, respectively     3,671,440    5,023,429
         Common stock, $0.001 par value, 100,000,000
          shares authorized; 29,161,473 and
          19,299,168 shares issued and outstanding
          as of September 30, 2009 and December 31,
          2008, respectively                              29,162       19,299
         Additional paid-in-capital                   44,240,211   29,889,220
         Accumulated deficit                         (46,075,742) (33,884,141)
                                                     -----------  -----------
             Total stockholders' equity                2,576,041    2,067,894
                                                       ---------    ---------
         TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $8,891,265   $8,733,172
         ------------------------------------------   ==========   ==========

The accompanying notes are an integral part of these consolidated financial statements.

                       NEW GENERATION BIOFUELS HOLDINGS, INC.
                       Consolidated Statements of Operations
                                 (Unaudited)

                               For the      For the      For the      For the
                                Three        Three        Nine         Nine
                               Months       Months       Months       Months
                                Ended        Ended        Ended        Ended
                              September    September    September    September
                              30, 2009     30, 2008     30, 2009     30, 2008
                              --------     --------     --------     --------

    Net revenue                $34,412           $-      $77,048           $-

    Cost of revenues
     (including
     depreciation and
     amortization for the
     three and nine months
     ended September 30,
     2009 and 2008 of
     $178,670, $511,282,
     $- and $-,
     respectively)             584,745            -    1,391,240            -

        Gross loss            (550,333)           -   (1,314,192)           -
                             ---------    ---------    ---------    ---------

    Operating expenses:
      Research and
       development
       expenses                 73,126      497,773      363,160      840,545
      General and
       administrative
       expenses              2,279,523    1,739,009    6,775,806    5,787,887
      Legal settlement               -            -            -      359,595
                             ---------    ---------    ---------    ---------
        Total operating
         expenses            2,352,649    2,236,782    7,138,966    6,988,027
                             ---------    ---------    ---------    ---------

    Loss from operations    (2,902,982)  (2,236,782)  (8,453,158)  (6,988,027)

    Interest income              1,294       10,525        2,951       27,114
    Interest expense          (119,029)    (136,138)    (338,692)    (422,758)

    Gain on debt
     extinguishment                  -            -      241,500            -
    (Loss) gain on fair
     value adjustment          736,211            -   (1,129,277)     (30,169)
                            ----------   ----------   ----------   ----------

    Net loss                (2,284,506)  (2,362,395)  (9,676,676)  (7,413,840)

    Dividends to Preferred
     stockholders             (167,919)    (225,976)  (4,549,741)  (3,476,201)
                            ----------   ----------   ----------   ----------

    Net loss available to
     common shareholders   $(2,452,425) $(2,588,371)$(14,226,417)$(10,890,041)
                           ===========  =========== ============ ============

    Basic and diluted net
     loss per share             $(0.09)      $(0.14)      $(0.58)      $(0.59)
                                ======       ======       ======       ======

    Weighted average
     number of shares
     outstanding            28,465,378   18,882,266   24,345,980   18,585,469
                            ==========   ==========   ==========   ==========

The accompanying notes are an integral part of these consolidated financial statements.

                     NEW GENERATION BIOFUELS HOLDINGS, INC.
                      Consolidated Statement of Cash Flows
                                   (Unaudited)

                                                  For the Nine   For the Nine
                                                  Months ended   Months ended
                                                  September 30,  September 30,
                                                       2009            2008
      CASH FLOWS FROM OPERATING
       ACTIVITIES:
      -------------------------
      Net loss                                      $(9,676,676)  $(7,413,840)
       Adjustments to reconcile net loss to
        net cash used in operating activities:
            Depreciation and amortization expense        68,747         1,190
            Loss on disposal of fixed assets             70,423             -
            Amortization of license                     462,354             -
            Amortization of discount                    338,692       422,758
            Compensation expense associated
             with stock options, stock and
             restricted stock                         2,048,989     1,538,212
            Compensation expense associated
             with accrued stocks and warrants                 -        85,626
            Stock options issued to non-employees
             for services                                25,951       588,826
            Penalty share expense                             -       230,277
            Warrant expense related to legal settlement       -       359,595

            Loss on fair value adjustment             1,129,277        30,169
            Gain on debt extinguishment                (241,500)            -
            Amortization of prepaid consulting fee      400,625             -
       Changes in operating assets and liabilities:

            Accounts receivable                           4,706             -
            Inventory                                   (11,708)            -
            Prepaid expenses                             22,619       (75,783)
            Other assets                                (15,180)      (82,031)
            Accounts payable and accrue expenses        132,969       (61,644)
                                                        -------       -------
                 Net cash used in operating
                  activities                         (5,239,712)   (4,376,645)
                                                     ----------    ----------
      CASH FLOWS FROM INVESTING ACTIVITIES:
      -------------------------------------
       Related party receivables                        (77,820)            -
       Purchase of property and equipment              (657,438)     (133,157)

                 Cash used in investing
                  activities                           (735,258)     (133,157)
                                                       --------      --------
      CASH FLOWS FROM FINANCING ACTIVITIES:
      -------------------------------------
       Payments for license agreement payable                 -    (1,000,000)
       Proceeds from issuances of common
        stock, net                                    5,799,452             -
       Proceeds from private offering issuance of
        preferred stock, net of costs                         -     7,187,650
       Proceeds from the exercise of warrants                 -       457,080
                                                        -------       -------
                 Net cash provided by financing
                  activities                          5,799,452     6,644,730
                                                      ---------     ---------
       Net (decrease) in cash and cash equivalents     (175,518)    2,134,928
       Cash and cash equivalents -
        beginning of period                           1,476,246     1,644,145
                                                      ---------     ---------
       Cash and cash equivalents - end of
        period                                       $1,300,728    $3,779,073
                                                     ==========    ==========
       Supplemental Disclosure of Non-Cash Investing
        and Financing Activities
       Accrued dividends on preferred stock            $544,580      $512,206
       Issuance of restricted stock to
        non-employees for prepaid consulting
        services                                       $117,500            $-
       Issuance of warrants to non-employees for
        prepaid consulting services                    $483,439            $-
       Common stock warrant liability                $1,361,380            $-
       Reclassification of warrant liability in
        connection with waiver of antidilution
        provision                                    $2,571,989            $-
       Reclassification of warrant liability in
        association with antidilution
        triggering event                               $126,730            $-
       Cumulative effect of reclassification of
        warrants (ASC Topic 815)                       $208,062            $-
       Common stock issued for payment of
        license agreement payable                      $758,500            $-
       Common stock issued for payment of
        accounts payable and accrued expenses           $25,000            $-
       Warrants issued for payment of accounts
        payable and accrued expenses                    $99,732            $-
       Accrued preferred stock dividends
        converted into shares of common stock          $241,563            $-
       Deemed dividend related to beneficial
        conversion feature on Series B Preferred
        Stock                                        $4,005,161            $-
       Conversion of Series A preferred stock to
        common stock                                   $309,117            $-
       Conversion of Series B preferred stock to
        common stock                                 $1,351,989            $-

SOURCE New Generation Biofuels Holdings, Inc.