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CST: 15/12/2019 01:59:52   

H/Cell Energy Reports FY2019 Third Quarter Financial Results

32 Days ago

DALLAS, Nov. 12, 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 third quarter ended September 30, 2019.

For the three months ended September 30, 2019, HCCC generated revenue of $1,701,365 and a net loss of $189,403 which included $86,217 of non-cash charges that do not affect the cash flow performance or working capital of HCCC. This amounts to a $(0.03) per share loss. For the nine months ended September 30, 2019, HCCC generated revenue of $5,333,559 and a net loss of $438,264 which included $285,251 of non-cash charges that again, do not affect the cash flow performance or working capital of HCCC. This amounts to a $(0.06) per share loss.

Andrew Hidalgo, CEO of HCCC, commented, "HCCC has been building momentum over the last few months. Recently, in several releases, we announced over $3.8 million in new contracts that we expect to be primarily completed in the fourth quarter, with some of those projects being pushed out to the first quarter of 2020. Even after being awarded several new projects, the bid list remains strong with close to $30 million of activity. Our two subsidiaries are operationally profitable year to date and have each established renewable energy efforts that have resulted in significant opportunities going forward. Corporate expenses have been more than originally budgeted this year due primarily to capital raising efforts. However, we have been successful in raising growth capital which should help us expand in 2020. Although non-cash charges have no bearing on our cash flow or working capital, we are planning to minimize non-cash charges in the future so that we can produce positive net income results overall. We are looking forward to building our business in this high growth renewable energy sector and establishing HCCC as a premier advanced clean energy company.” 

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
CONDENSED CONSOLIDATED BALANCE SHEETS
             
    September 30, 2019     December 31, 2018  
    (Unaudited)        
ASSETS                
Current assets                
Cash and cash equivalents   $ 242,389     $ 359,134  
Accounts receivable     1,019,524       1,087,381  
Prepaid expenses     19,763       16,282  
Current right of use asset     85,807       -  
Costs and earnings in excess of billings     3,709       45,478  
Total current assets     1,371,192       1,508,275  
                 
Property and equipment, net     464,075       476,436  
Security deposits and other non-current assets     31,109       32,530  
Deferred tax asset     50,000       50,000  
Customer lists, net     68,282       83,645  
Deferred offering cost     133,797       -  
Right of use asset     139,607       -  
Goodwill     1,373,621       1,373,621  
                 
Total assets   $ 3,631,683     $ 3,524,507  
                 
LIABILITIES AND STOCKHOLDERS’ EQUITY                
                 
Current liabilities                
Accounts payable and accrued expenses   $ 746,081     $ 891,354  
Current line of credit     303,526       -  
Billings in excess of costs and earnings     44,301       195,331  
Sales and withholding tax payable     50,072       59,857  
Current equipment notes payable     41,358       38,991  
Current operating lease liability     85,807       -  
Current finance lease payable     73,842       65,265  
Current convertible notes payable – related party, net of discounts     257,659       -  
Income tax payable     33,134       48,643  
Total current liabilities     1,635,780       1,299,441  
                 
Noncurrent liabilities                
Line of credit     -       28,359  
Lease operating liability     141,171       -  
Earn out payable     204,383       190,736  
Finance leases     268,269       232,876  
Equipment notes payable     76,159       121,038  
Convertible notes payable – related party, net of discounts     155,442       29,122  
Total noncurrent liabilities     845,424       602,131  
                 
Total liabilities     2,481,204       1,901,572  
                 
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;
7,694,024 and 7,586,024 shares issued and outstanding
as of September 30, 2019 and December 31, 2018, respectively
    769       758  
Additional paid-in capital     2,950,136       2,983,476  
Accumulated deficit     (1,724,028 )     (1,285,764 )
Accumulated other comprehensive loss     (76,398 )     (75,535 )
Total stockholders’ equity     1,150,479       1,622,935  
                 
TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY   $ 3,631,683     $ 3,524,507  


             
H/CELL ENERGY CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS – OTHER COMPREHENSIVE INCOME
(UNAUDITED)
             
    For the Three Months Ended
September 30,
    For the Nine Months Ended
September 30,
 
    2019     2018     2019     2018  
                         
Revenue                                
Construction income   $ 1,701,365     $ 1,830,992     $ 5,333,559     $ 5,535,352  
Related party     -       8,499       -       40,288  
Total revenue     1,701,365       1,839,491       5,333,559       5,575,640  
                                 
Cost of goods sold                                
Direct costs     1,241,630       1,438,669       3,747,390       3,901,125  
Direct costs – related party     -       9,019       -       40,636  
Total cost of goods sold     1,241,630       1,447,688       3,747,390       3,941,761  
                                 
Gross profit     459,735       391,803       1,586,169       1,633,879  
                                 
Operating expenses                                
General and administrative expenses     555,682       607,125       1,794,191       1,850,140  
Management fees – related party     21,500       19,500       60,500       58,500  
Total operating expenses     577,182       626,625       1,854,691       1,908,640  
                                 
Loss from operations     (117,447 )     (234,822 )     (268,522 )     (274,761 )
                                 
Other expenses                                
Interest expense     11,801       7,544       23,892       21,636  
Interest expense – related party     64,065       19,877       158,220       52,768  
Change in fair value earn-out     4,704       4,290       13,647       11,028  
(Gain) loss on fixed asset disposal     (8,614 )     795       (26,017 )     4,149  
Total other expenses     71,956       32,506       169,742       78,553  
                                 
Net loss   $ (189,403 )   $ (267,328 )   $ (438,264 )   $ (364,342 )
                                 
Other comprehensive income (loss), net                                
                                 
Foreign currency translation adjustment     (15,236 )     (7,828 )     (863 )     (40,657 )
                                 
Comprehensive loss   $ (204,639 )   $ (275,126 )   $ (439,127 )   $ (404,999 )
                                 
Earnings (loss) per share                                
Basic   $ (0.03 )   $ (0.04 )   $ (0.06 )   $ (0.05 )
Diluted   $ (0.03 )   $ (0.04 )   $ (0.06 )   $ (0.05 )
Weighted average common shares outstanding                                
Basic     7,574,247       7,586,024       7,596,286       7,469,307  
Diluted     7,574,247       7,586,024       7,596,286       7,469,307  


 

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