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CST: 20/08/2019 00:41:36   

H/Cell Energy Reports FY2018 Year End Financial Results

146 Days ago

DALLAS, March 26, 2019 (GLOBE NEWSWIRE) -- H/Cell Energy Corporation (OTCQB-HCCC) (“HCCC”), a company that designs and implements clean energy solutions featuring hydrogen and fuel cell technology, has announced financial results for its fiscal year ended December 31, 2018.

Fiscal Year 2018 Highlights:

  • Increased year-over-year revenue by 19%
  • Acquired and assimilated PVBJ, Inc. (www.pvbjinc.com)
  • Secured a growth lending facility with Thermo Communications Funding
  • Achieved an operating profit in both wholly-owned HCCC subsidiaries
  • Established a revenue producing renewable energy division in Australia
  • Selected as a panel member for The Queensland Department of Natural Resources, Mines and Energy
  • Increased bid list to approximately $27 million

For the twelve months ended December 31, 2018, HCCC generated revenue of $7,546,437 and a net loss of $554,010, which includes $292,439 of non-cash charges that do not affect the cash flow performance or working capital of HCCC. This amounts to $(0.07) in loss per share. The results compare to revenue of $6,352,886 and net income of $8,897 or $0.00 in earnings per share, fully diluted, for the prior year ended December 31, 2017.

Andrew Hidalgo, CEO of HCCC, commented, "Fiscal year 2018 was a significant year for the company. We invested in the growth of the organization and achieved many milestones. Our subsidiaries are performing well and generating many projects while focusing on the market development of our advanced clean energy solutions. We feel that our financial condition is solid, with $359,134 in cash and $3,524,507 in assets. We also believe our advanced clean energy solutions featuring hydrogen and fuel cell technology will become a primary energy source for off-grid electric power in the residential, commercial and government sectors. HCCC is growing at a fast pace and the market for clean energy is abundant with opportunities.”

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.

Contact:

H/Cell Energy Corporation                                          
Investor Relations                                                    
3010 LBJ Freeway, Suite 1200                                    
Dallas, Texas 75234 
972-888-6009 USA   

H/CELL ENERGY CORPORATION
  CONSOLIDATED BALANCE SHEETS
         
    December 31, 2018   December 31, 2017
         
ASSETS        
Current assets        
Cash and cash equivalents   $ 359,134     $ 455,700  
Accounts receivable (net retention)     1,087,381       808,050  
Prepaid expenses     16,282       14,669  
Costs and earnings in excess of billings     45,478       51,531  
Total current assets     1,508,275       1,329,950  
         
Property and equipment, net     476,436       102,573  
Security deposits and other non-current assets     32,530       8,416  
Deferred tax asset     50,000       44,257  
Customer lists, net     83,645       -  
Goodwill     1,373,621       -  
         
Total assets   $ 3,524,507     $ 1,485,196  
         
LIABILITIES AND STOCKHOLDERS' EQUITY        
         
Current liabilities        
Accounts payable and accrued expenses   $ 891,354     $ 631,385  
Management fees payable – related party     -       31,257  
Earn-out payable     190,736       -  
Billings in excess of costs and earnings     195,331       87,206  
Sales and withholding tax payable     59,857       61,239  
Current equipment notes payable     38,991       -  
Current capital lease payable     65,265       -  
Income tax payable     48,643       98,313  
Total current liabilities     1,490,177       909,400  
         
Noncurrent liabilities        
Line of credit     28,359       -  
Equipment note payable     121,038       -  
Capital leases     232,876       -  
Convertible note payable – related party, net of discount     29,122       -  
Total noncurrent liabilities     411,395       -  
         
Total liabilities     1,901,572       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;
 7,586,024 and 7,041,579 shares issued and outstanding
 as of December 31, 2018 and December 31, 2017, respectively
    758       704  
Additional paid-in capital     2,983,476       1,335,656  
Accumulated deficit     (1,285,764 )     (731,754 )
Accumulated other comprehensive loss     (75,535 )     (28,810 )
Total stockholders' equity     1,622,935       575,796  
         
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY   $ 3,524,507     $ 1,485,196  
                 


H/CELL ENERGY CORPORATION  
CONSOLIDATED STATEMENT OF OPERATIONS – OTHER COMPREHENSIVE INCOME  
       
    For the Years Ended December 31,  
      2018       2017  
           
Revenue          
Construction income   $ 7,505,889     $ 6,266,967  
Related party     40,548       85,919  
Total revenue     7,546,437       6,352,886  
           
Cost of goods sold          
Direct costs     5,492,607       4,241,421  
Direct costs – related party     40,376       87,649  
Total cost of goods sold     5,532,983       4,329,070  
           
Gross profit     2,013,454       2,023,816  
           
Operating expenses          
General and administrative expenses     2,368,860       1,776,859  
Management fees – related party     78,000       184,004  
Total operating expenses     2,446,860       1,960,863  
           
Income (loss) from operations     (433,406 )     62,953  
           
Other expenses          
Interest expense     26,584       -  
Interest expense – related party     79,622       -  
Change in fair value earn-out     15,418       -  
Gain on fixed asset disposal     (17,277 )     -  
Total other expenses     104,347       -  
           
Income tax provision     16,257       54,056  
           
Net income (loss) before income taxes   $ (554,010 )   $ 8,897  
           
Other comprehensive income (loss), net          
           
Foreign currency translation adjustment     (46,725 )     21,996  
           
Comprehensive income (loss)   $ (600,735 )   $ 30,893  
           
 Earnings (loss) per share          
Basic   $ (0.07 )   $ 0.00  
Diluted   $ (0.07 )   $ 0.00  
 Weighted average common shares outstanding          
Basic     7,586,024       6,703,223  
Diluted     7,586,024       7,699,743  
           

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