FLEMINGTON, N.J., May 22, 2017 (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 the first fiscal quarter ended March 31, 2017.
In the first quarter, HCCC reported revenue of $1,866,845 and a net loss of $56,124 or $0.01 per diluted share, which includes the retrospective application of common control financials.
Andrew Hidalgo, CEO of HCCC, commented, "As we are in our early stages of growth, HCCC is pleased to report record revenue growth. HCCC would have posted a positive net income had it not been for certain accounting pronouncements, which required HCCC to consolidate financials along with The Pride Group for the same reporting period, since The Pride Group was a common control acquisition. Although the acquisition of The Pride Group was concluded on January 31, 2017, HCCC had to account for their entire financial month of January 2017, even though HCCC did not own The Pride Group during that time. We see a very positive outlook ahead. At March 31, 2017, our bid list was approximately $6.5 million and our work in progress backlog was approximately $1.6 million. HCCC will continue to focus on organic growth as well as identifying strategic acquisitions in the months ahead.”
About H/Cell Energy Corporation:
H/Cell Energy Corporation is a systems integrator that focuses on the design and implementation of clean energy solutions including solar, battery technology and hydrogen energy systems. The company 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 | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| March 31, 2017 | December 31, 2016 | |||||||
| (Unaudited) | (as restated) | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 346,893 | $ | 537,867 | ||||
| Accounts receivable ( net retention) | 1,521,592 | 650,886 | ||||||
| Prepaid expenses | 7,425 | 14,168 | ||||||
| Costs in excess of billings | 80,826 | 91,904 | ||||||
| Total current assets | 1,956,736 | 1,294,825 | ||||||
| Property and equipment, net | 106,603 | 99,816 | ||||||
| Security deposits and other non-current assets | 8,718 | 8,497 | ||||||
| Total assets | $ | 2,072,057 | $ | 1,403,138 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and accrued expenses | $ | 1,394,199 | $ | 713,237 | ||||
| Billings in excess of costs | 104,718 | 83,538 | ||||||
| Sales tax payable | 120,617 | 114,085 | ||||||
| Total current labilities | 1,619,534 | 910,860 | ||||||
| Commitments and Contingencies | ||||||||
| Stockholders' Equity | ||||||||
| Common Stock - $0.0001 par value; 25,000,000 shares authorized; 6,941,579 and 3,131,579 shares issued and outstanding as of March 31, 2017 and December 31, 2016, respectively | 694 | 313 | ||||||
| Preferred Stock - $0.0001 par value; 5,000,000 shares authorized; 0 shares issued and outstanding | - | - | ||||||
| Additional paid-in capital | 1,288,041 | 1,283,422 | ||||||
| Accumulated deficit | (796,775 | ) | (740,651 | ) | ||||
| Accumulated other comprehensive loss | (39,437 | ) | (50,806 | ) | ||||
| Total stockholders' equity | 452,523 | 492,278 | ||||||
| TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | $ | 2,072,057 | $ | 1,403,138 | ||||
| H/CELL ENERGY CORPORATION | ||||||||
| CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS - OTHER COMPREHENSIVE INCOME | ||||||||
| (UNAUDITED) | ||||||||
| For the Three Months Ended March 31, | ||||||||
| 2017 | 2016 | |||||||
| Revenue | ||||||||
| Construction income | $ | 1,850,755 | $ | 1,216,004 | ||||
| Related party | 16,090 | - | ||||||
| Total revenue | 1,866,845 | 1,216,004 | ||||||
| Cost of goods sold | ||||||||
| Direct costs | 1,413,820 | 914,262 | ||||||
| Related party | 15,905 | - | ||||||
| Total cost of goods sold | 1,429,725 | 914,262 | ||||||
| Gross profit | 437,120 | 301,742 | ||||||
| Operating expenses | ||||||||
| Research and development | - | 2,000 | ||||||
| General and administrative expenses | 493,244 | 953,495 | ||||||
| Total operating expenses | 493,244 | 955,495 | ||||||
| Loss from operations | (56,124 | ) | (653,753 | ) | ||||
| Income tax provision (benefit) | - | - | ||||||
| Net loss | $ | (56,124 | ) | $ | (653,753 | ) | ||
| Other comprehensive loss, net | ||||||||
| Change in foreign currency translation adjustment | 11,369 | 11,268 | ||||||
| Comprehensive loss | $ | (44,755 | ) | $ | (642,485 | ) | ||
| Loss per share | ||||||||
| Basic | $ | (0.01 | ) | $ | (0.27 | ) | ||
| Weighted average common shares outstanding | ||||||||
| Basic | 5,657,309 | 2,432,749 | ||||||