H/Cell Energy Reports FY2017 Year End Financial Results

H/Cell Energy Reports FY2017 Year End Financial Results

FLEMINGTON, N.J., April 02, 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 year ended December 31, 2017.

For the twelve months ended December 31, 2017, HCCC generated revenue of $6,352,886 and net income of $8,897 or $0.00 in earnings per share, fully diluted. This compares to revenue of $5,007,103 and a net loss of $706,727, or ($0.25) in earnings per share, fully diluted, for the prior year ended December 31, 2016.

Andrew Hidalgo, CEO of HCCC, commented, "We are very pleased to post a profitable year in FY2017, especially as a young company. In addition, we had a substantial gain in revenue and earnings year over year. Our subsidiaries are performing well and we are establishing cost efficiencies as we assimilate each acquisition. As of December 31, 2017, our backlog of orders stood at $1,091,816 and our bid list totaled $7,100,030 which although does not represent orders, is a sign of future potential. We also believe that our financial condition is solid, with $455,700 in cash, $1,485,496 in assets and $420,550 in working capital as of December 31, 2017. We have a very bright future in clean energy with a market full of opportunities. We believe our hydrogen energy systems will become a primary energy source for electric power in both the residential and commercial sectors. HCCC remains focused on clean energy for a better environment.” 

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
CONSOLIDATED BALANCE SHEETS
 
  December 31,
2017

  December 31,
2016

      (As restated)
 ASSETS         
Current assets:         
Cash and cash equivalents  $  455,700   $  537,867  
Accounts receivable (net retention)   808,050     650,886  
Prepaid expenses     14,669      14,168  
Costs and earnings in excess of billings     51,531      91,904  
Total current assets     1,329,950      1,294,825  
         
Property and equipment, net      102,573      99,816  
Security deposits and other non-current assets     8,416      8,497  
Deferred tax asset   44,257   - 
         
Total assets  $  1,485,196   $  1,403,138  
         
 LIABILITIES AND STOCKHOLDERS' EQUITY         
         
Current liabilities:         
Accounts payable and accrued expenses  $  631,385   $  661,237  
Management fees payable – related party  31,257   52,000 
Billings in excess of costs and earnings   87,206      83,538  
Sales tax payable    61,239      114,085  
Income tax payable   98,313   - 
Total current liabilities  $    909,400   

$
 
    910,860
 
         
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; 
 7,041,579 and 3,131,579 shares issued and outstanding
 as of December 31, 2017 and December 31, 2016, respectively
    704      313  
         
Additional paid-in capital   1,335,656      1,283,422  
Accumulated deficit     (731,754)    (740,651)
Accumulated other comprehensive loss     (28,810)    (50,806)
Total stockholders' equity     575,796      492,278  
         
 TOTAL LIABILITIES & STOCKHOLDERS' EQUITY  $  1,485,196   $  1,403,138  
         
 The accompanying notes are an integral part of these audited consolidated financial statements.
 
 


H/CELL ENERGY CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS – OTHER COMPREHENSIVE INCOME
 
  For the Year
Ended December 31,
   2017  2016 
     (As restated)
 Revenue        
Construction income  $  6,266,967  $4,978,576 
Related party     85,919     28,527  
        
Total revenue   6,352,886   5,007,103  
        
 Cost of goods sold        
Direct costs     4,241,421   3,355,176  
Direct costs – related party    87,649     1,500  
        
Total cost of goods sold   4,329,070   3,356,676  
        
 Gross profit     2,023,816   1,650,427  
        
 Operating expenses        
Research and development       2,000  
General and administrative expenses     1,776,859   2,197,139  
  Management fees – related party  184,004  158,015 
        
Total operating expenses     1,960,863  2,357,154  
        
 Income (Loss) from operations  62,953  (706,727)
        
Income Tax  54,056  - 
        
 Net income (loss)  $  8,897  $  (706,727)
        
 Other comprehensive income (loss), net        
        
Foreign currency translation adjustment     21,996    183,230  
        
 Comprehensive income (loss)  $  30,893  $  (523,524)
        
 Earnings (Loss) per share        
Basic   $  0.00  $  (0.25)
Diluted $   0.00 $  (0.25)
 Weighted average common shares outstanding        
Basic    6,703,223   2,853,785  
Diluted     7,699,743    2,853,785 
        
The accompanying notes are an integral part of these audited consolidated financial statements.