EX-99.1 2 ex99-1.htm

 

Exhibit 99.01

 

H/Cell Energy Reports FY2019 Year End Financial Results

 

Dallas, TX, March 25, 2020 (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, 2019.

 

Fiscal Year 2019 Highlights:

 

  ● Both wholly-owned subsidiaries generated an operating profit for the year
  ● HCCC generated $2.0 million in consolidated gross profit
  ● HCCC entered into a $3 million equity line of credit for growth capital
  ● HCCC successfully established a renewable energy division in Australia
  ● HCCC obtained contract awards for $5.2 million in new projects in the last four months of 2019
  ● HCCC increased its bid list to approximately $38 million

 

For the twelve months ended December 31, 2019, HCCC generated revenue of $6,817,324 and a net loss of $724,393, which includes $405,215 of non-cash charges that do not affect the cash flow performance or working capital of HCCC. This amounts to $(0.09) in loss per share. The results compare to revenue of $7,505,889 and a net loss of $554,010 or $(0.07) in loss per share, for the prior year ended December 31, 2018.

 

Andrew Hidalgo, CEO of HCCC, commented, “Fiscal year 2019 was a year of investment in the growth for our business. We established a renewable energy effort in Australia, which generated expense for labor, materials and training that took away from the core revenue production as compared to last year. However, we needed to establish a renewable energy footprint in Australia and by doing so, we believe that 2020 should see significant gains in renewable energy revenue production. We have already seen an increase in bids and projects awarded in renewable energy. With our $3 million equity line of credit, subject to market conditions, we have access to capital to continue the growth anticipated for 2020. Both of our subsidiaries are operationally profitable and we are managing our corporate expenses as effectively as possible. HCCC still maintains $3.5 million in assets and approximately $275,000 in cash as of December 31, 2019. Our bid activity remains high and we see 2020 as a year that will strengthen our balance sheet.”

 

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, 2019   December 31, 2018 
         
ASSETS          
Current assets          
Cash and cash equivalents  $277,620   $359,134 
Accounts receivable (net retention)   803,659    1,087,381 
Prepaid expenses   15,258    16,282 
Costs and earnings in excess of billings   26,045    45,478 
Total current assets   1,122,582    1,508,275 
           
Property and equipment, net   478,238    476,436 
Security deposits and other non-current assets   32,233    32,530 
Deferred tax asset   46,000    50,000 
Customer lists, net   63,161    83,645 
Right of use asset   222,524    - 
Deferred offering cost   130,072    - 
Goodwill   1,373,621    1,373,621 
           
Total assets  $3,468,431   $3,524,507 
           
LIABILITIES AND STOCKHOLDERS’ EQUITY          
           
Current liabilities          
Accounts payable and accrued expenses  $702,133   $891,354 
Billings in excess of costs and earnings   47,098    195,331 
Sales and withholding tax payable   39,751    59,857 
Current operating lease liability   87,897    - 
Current equipment notes payable   27,435    38,991 
Current finance lease payable   75,743    65,265 
Current line of credit   269,746    - 
Current convertible note payable   80,500    - 
Income tax payable   41,426    48,643 
Total current liabilities   1,371,729    1,299,441 
           
Noncurrent liabilities          
Line of credit   -    28,359 
Lease operating liability   137,071    - 
Earn-out payable   209,199    190,736 
Equipment note payable   72,140    121,038 
Finance leases   307,804    232,876 
Convertible note payable – related party, net of discount   473,770    29,122 
Total noncurrent liabilities   1,199,984    602,131 
           
Total liabilities   2,571,713    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; 7,725,524 and 7,586,024 shares issued and outstanding as of December 31, 2019 and December 31, 2018, respectively   772    758 
Additional paid-in capital   2,969,686    2,983,476 
Accumulated deficit   (2,010,157)   (1,285,764)
Accumulated other comprehensive loss   (63,583)   (75,535)
Total stockholders’ equity   896,718    1,622,935 
           
TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY  $3,468,431   $3,524,507 

 

 

 
 

 

HCELL ENERGY CORPORATION

CONSOLIDATED STATEMENT OF OPERATIONS – OTHER COMPREHENSIVE INCOME

 

   For the Years Ended December 31, 
   2019   2018 
         
Revenue          
Sales  $6,817,324   $7,505,889 
Related party   -    40,548 
Total revenue   6,817,324    7,546,437 
           
Cost of goods sold          
Direct costs   4,854,878    5,492,607 
Direct costs – related party   -    40,376 
Total cost of goods sold   4,854,878    5,532,983 
           
Gross profit   1,962,446    2,013,454 
           
Operating expenses          
General and administrative expenses   2,335,285    2,368,860 
Management fees – related party   80,500    78,000 
Total operating expenses   2,415,785    2,446,860 
           
Loss from operations   (453,339)   (433,406)
           
Other expenses (income)          
Interest expense   42,897    26,584 
Interest expense – related party   233,345    79,622 
Change in fair value earn-out   18,463    15,418 
Gain on fixed asset disposal   (36,651)   (17,277)
Total other expenses   258,054    104,347 
           
Net loss before taxes   (711,393)   (537,753)
           
Income tax provision   13,000    16,257 
           
Net loss  $(724,393)  $(554,010)
           
Other comprehensive income (loss), net          
           
Foreign currency translation adjustment   11,952    (46,725)
           
Comprehensive loss  $(712,441)  $(600,735)
           
Loss per share          
Basic  $(0.09)  $(0.07)
Diluted  $(0.09)  $(0.07)
Weighted average common shares outstanding          
Basic   7,644,653    7,586,024 
Diluted   7,644,653    7,586,024