June 27, 2018 - 5:00 PM EDT
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H/Cell Energy Reports FY2018 First Quarter Financial Results

FLEMINGTON, N.J., June 27, 2018 (GLOBE NEWSWIRE) -- H/Cell Energy Corporation (OTCQB:HCCC) (“HCCC”), a company that designs and implements clean energy solutions featuring hydrogen energy systems, has announced financial results for its fiscal 2018 first quarter ended March 31, 2018.

For the three months ended March 31, 2018, HCCC generated revenue of $1,726,324 and a net loss of $110,969, or $(0.02) in earnings per share, fully diluted. This compares to revenue of $1,866,845 and a net loss of $56,124, or $(0.01) in earnings per share, fully diluted, for the three months ended March 31, 2017.

Andrew Hidalgo, CEO of HCCC, commented, "The first quarter was a bit challenging as our filing was delayed due to the two year audit required for the PVBJ, Inc. (“PVBJ”) acquisition concluded in February 2018. We could not file our quarterly results until the two year audit was concluded for PVBJ. Initially, we felt that we could meet the filing deadline for the audit but as it turned out, there were unintentional entry errors in the historical PVBJ financials, which required an extensive accounting effort to rectify. We completed the PVBJ two year audit and it has been filed accordingly. The extra work required to assimilate PVBJ was reflected in higher than anticipated one-time fees for acquisition and accounting costs, which contributed to the net income loss in the first quarter. Also contributing to the first quarter net income loss were non-cash charges of $50,501 for stock option grants, amortization of intangible assets, depreciation and debt discount calculations. These non-cash charges do not affect the cash flow performance or working capital of HCCC. We believe it is important for investors to recognize financial performance independent of non-cash accounting charges for certain events. Overall, the subsidiaries are performing well and we anticipate profitable quarters ahead. We also believe that our financial condition remains solid with $591,978 in cash, $3,737,724 in assets and $426,490 in working capital as of March 31, 2018. For the first quarter, we also generated $136,278 in positive cash flow. We are excited about the acquisition of PVBJ, as it expands our revenue production and gives us a base of technicians that will be trained in the implementation of hydrogen technology. The market continues to create opportunities. HCCC has been recently contracted to conclude feasibility studies for the implementation of hydrogen energy systems in residential applications. We look forward to continuing our growth.” 

About H/Cell Energy Corporation:

H/Cell Energy Corporation is an integrator that focuses on the design and implementation of clean energy solutions including solar, battery, fuel cell and hydrogen generation systems. In addition, through its subsidiaries, HCCC also provides environmental systems and security systems integration. HCCC serves the residential, commercial and government sectors. Please visit our website at www.hcellenergy.com for more information.

Forward Looking Statements:

Certain statements in this press release are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may be identified by the use of forward-looking words such as “anticipate,” “believe,” “forecast,” “estimate,” “expect,” and “intend,” among others. These forward-looking statements are based on current expectations and actual results could differ materially. H/Cell Energy Corporation does not undertake an obligation to update or revise any forward-looking statement. The information set forth herein speaks only as of the date hereof.

H/Cell Energy Corporation
Investor Relations
908-837-9097 x-2

 
H/CELL ENERGY CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
     
  March 31, 2018 December 31, 2017
  (Unaudited) (Audited)
ASSETS     
Current assets    
Cash and cash equivalents $591,978  $455,700 
Accounts receivable  1,110,552   808,050 
Prepaid expenses  18,716   14,669 
Costs and earnings in excess of billings  67,982   51,531 
Total current assets  1,789,228   1,329,950 
     
Property and equipment, net  409,376   102,573 
Security deposits and other non-current assets  22,234   8,416 
Deferred tax asset  44,257   44,257 
Customer lists, net  99,008   - 
Goodwill  1,373,621   - 
     
Total assets  $3,737,724  $1,485,196 
     
LIABILITIES AND STOCKHOLDERS' EQUITY     
     
Current liabilities    
Accounts payable and accrued expenses $1,073,289  $631,385 
Management fees payable – related party  15,000   31,257 
Billings in excess of costs and earnings  100,544   87,206 
Sales and withholding tax payable  55,969   61,239 
Current equipment notes payable  23,823   - 
Current capital lease payable  49,856   - 
Income tax payable  44,257   98,313 
Total current liabilities   1,362,738   909,400 
     
Noncurrent liabilities    
Capital leases  197,873   - 
Equipment notes payable  121,476   - 
Convertible note payable – related party, net of discount  2,214   - 
Total noncurrent liabilities  321,563   - 
     
Total liabilities  1,684,301   909,400 
     
Commitments and contingencies      
     
Stockholders' equity     
Preferred stock - $0.0001 par value; 5,000,000 shares authorized;
    0 shares issued and outstanding
  -   - 
Common stock - $0.0001 par value; 25,000,000 shares authorized;
   7,486,024 and 7,041,579 shares issued and outstanding
   as of March 31, 2018 and December 31, 2017, respectively
  748   704 
Additional paid-in capital  2,934,467   1,335,656 
Accumulated deficit  (842,723)  (731,754)
Accumulated other comprehensive loss  (39,069)  (28,810)
 Total stockholders' equity  $2,053,423  $575,796 
     
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY  $3,737,724  $1,485,196 
         


 
H/CELL ENERGY CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS - OTHER COMPREHENSIVE INCOME
(UNAUDITED)
     
  For the Three Months Ended March 31,
   2018   2017 
     
Revenue     
Construction income $1,694,535  $1,850,755 
Related party  31,789   16,090 
     
Total revenue  1,726,324   1,866,845 
     
Cost of goods sold     
Direct costs  1,209,413   1,413,820 
Direct costs - related party  31,617   15,905 
     
Total cost of goods sold  1,241,030   1,429,725 
     
Gross profit   485,294   437,120 
     
Operating expenses     
General and administrative expenses  574,684   493,244 
Total operating expenses   574,684   493,244 
     
Loss from operations   (89,390)  (56,124)
Income tax provision (benefit)   -   - 
     
Loss before other income and expense  $(89,390) $(56,124)
     
Other expense    
Interest expense  3,946   - 
Interest expense – related party  14,215   - 
Loss on fixed asset disposal  3,418   - 
Total other expense  21,579   - 
     
Net loss $(110,969) $(56,124)
     
Other comprehensive loss, net     
     
Foreign currency translation adjustment   (10,259)  11,369 
     
Comprehensive loss  $(121,228) $(44,755)
     
     
Loss per share     
Basic $(0.02) $(0.01)
Diluted $(0.02) $(0.01)
     
Weighted average common shares outstanding     
Basic  7,486,024   5,657,309 
Diluted  7,486,024   5,657,309 
         


 

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Source: GlobeNewswire (June 27, 2018 - 5:00 PM EDT)

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