DALLAS, May 16, 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 first quarter ended March 31, 2019.

For the three months ended March 31, 2019, HCCC generated revenue of $1,704,273 and a net loss of $143,638 which includes $111,153 of non-cash charges that do not affect the cash flow performance or working capital of HCCC. This amounts to a $(0.02) per share loss. Comparatively, for the first quarter ended March 31, 2018, HCCC generated $1,726,324 and a net loss of $110,969 which included $53,001 of non-cash charges. This also amounted to a $(0.02) per share loss.

Andrew Hidalgo, CEO of HCCC, commented, “The first quarter is typically our slowest quarter of the year; however, the subsidiaries were profitable and performed well. Excluding non-cash charges that do not affect the cash flow performance or working capital of HCCC, the company posted a small operational loss for the quarter due to among other corporate expenses, the cost of the year-end audit. The balance of the year projections are strong and we have increased our overall bid list from $27 million in the previous quarter to $33 million this quarter, which indicates that activity is rising. We believe our goal of maintaining consistent operational profitability, exclusive of non-cash charges, is within reach and we also believe that the market for advanced clean energy solutions continues to expand in opportunity due to lower cost and more efficient technology. Lastly, we feel our financial condition remains solid with $328,439 in cash and $3,659,042 in assets as of March 31, 2019. We look forward to delivering improved results in the quarters ahead.”

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

  March 31, 2019  December 31, 2018 
  (Unaudited)  (Audited) 
ASSETS        
Current assets        
Cash and cash equivalents $328,439  $359,134 
Accounts receivable  937,897   1,087,381 
Prepaid expenses  18,772   16,282 
Current right-of-use (ROU) asset  92,269   - 
Costs and earnings in excess of billings  48,052   45,478 
Total current assets  1,425,429   1,508,275 
         
Property and equipment, net  494,491   476,436 
Security deposits and other non-current assets  38,992   32,530 
Deferred tax asset  50,000   50,000 
Customer lists, net  78,524   83,645 
ROU asset  167,985   - 
Other long term asset  30,000   - 
Goodwill  1,373,621   1,373,621 
         
Total assets $3,659,042  $3,524,507 
         
LIABILITIES AND STOCKHOLDERS’ EQUITY        
         
Current liabilities        
Accounts payable and accrued expenses $695,997  $891,354 
Earn-out payable  195,132   190,736 
Billings in excess of costs and earnings  41,881   195,331 
Sales and withholding tax payable  54,071   59,857 
Current equipment notes payable  32,052   38,991 
Current operating lease liability  92,269   - 
Current finance lease payable  72,510   65,265 
Current convertible notes payable – related party, net of discounts  257,659   - 
Income tax payable  32,259   48,643 
Total current liabilities  1,473,830   1,490,177 
         
Noncurrent liabilities        
Line of credit  172,715   28,359 
Lease operating liability  167,985   - 
Finance leases  306,163   232,876 
Equipment notes payable  65,779   121,038 
Convertible notes payable – related party, net of discounts  61,609   29,122 
Total noncurrent liabilities  774,251   411,395 
         
Total liabilities  2,248,081   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;
7,621,024 and 7,586,024 shares issued and outstanding
as of March 31, 2019 and December 31, 2018, respectively
  762   758 
Additional paid-in capital  2,896,524   2,983,476 
Accumulated deficit  (1,429,402)  (1,285,764)
Accumulated other comprehensive loss  (56,923)  (75,535)
Total stockholders’ equity  1,410,961   1,622,935 
         
TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY $3,659,042  $3,524,507 


H/CELL ENERGY CORPORATION

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS - AND OTHER COMPREHENSIVE INCOME
(UNAUDITED)

  For the Three Months Ended March 31, 
  2019  2018 
Revenue        
Construction income $1,704,273  $1,694,535 
Related party  -   31,789 
Total revenue  1,704,273   1,726,324 
         
Cost of goods sold        
Direct costs  1,196,438   1,209,413 
Direct costs – related party  -   31,617 
Total cost of goods sold  1,196,438   1,241,030 
         
Gross profit  507,835   485,294 
         
Operating expenses        
General and administrative expenses  607,052   555,184 
Management fees – related party  19,500   19,500 
Total operating expenses  626,552   574,684 
         
Loss from operations  (118,717)  (89,390)
         
Other expenses        
Interest expense  1,833   3,946 
Interest expense – related party  36,095   14,215 
Change in fair value earn-out  4,396   - 
(Gain) loss on fixed asset disposal  (17,403)  3,418 
Total other expenses  24,921   21,579 
         
Income tax provision  -   - 
         
Net loss $(143,638) $(110,969)
         
Other comprehensive income (loss), net        
         
Foreign currency translation adjustment  18,612   (10,259)
         
Comprehensive loss $(125,026) $(121,228)
         
Loss per share        
Basic $(0.02) $(0.02)
Diluted $(0.02) $(0.02)
Weighted average common shares outstanding        
Basic  7,593,413   7,486,024 
Diluted  7,593,413   7,486,024