UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

 

FORM 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of report (date of earliest event reported): August 15, 2017

 

 

 

H/CELL ENERGY CORPORATION

(Exact name of registrant as specified in its charter)

 

Nevada 000-55802 47-4823945

(State or Other Jurisdiction

of Incorporation)

(Commission

File Number)

(IRS Employer

Identification No.)

 

97 River Road, Flemington, NJ 08822

(Address of principal executive offices) (Zip Code)

 

Registrant’s telephone number, including area code: (908) 837-9097

 

Copy of correspondence to:

 

James M. Turner, Esq.

Marc J. Ross, Esq.

Sichenzia Ross Ference Kesner LLP

61 Broadway

New York, New York 10006

Tel: (212) 930-9700 Fax: (212) 930-9725

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

 

Emerging growth company [X]

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [  ]

 

 

 

 
 

 

Item 2.02 Results of Operations and Financial Condition.

 

On August 15, 2017, H/Cell Energy Corporation announced its operating results for the second fiscal quarter ended June 30, 2017. A copy of the press release that discusses this matter is filed as Exhibit 99.01 to, and incorporated by reference in, this report. The information in this Current Report is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, except as shall be expressly set forth by specific reference in any such filing.

 

Item 9.01 Financial Statements and Exhibits.

 

(d) Exhibits.

 

99.01 Press Release, dated August 15, 2017, issued by H/Cell Energy Corporation*

 

 

* Furnished herewith.

 

2
 

 

SIGNATURE

 

Pursuant to the requirement of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

  H/CELL ENERGY CORPORATION
   
Date: August 15, 2017 By: /s/ ANDREW HIDALGO
    Andrew Hidalgo
    Chief Executive Officer

 

3
 

 

 

Exhibit 99.01

 

H/Cell Energy Reports FY2017 Second Quarter Results

 

Flemington, NJ, August 15, 2017 (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 second fiscal quarter ended June 30, 2017.

 

For the three months ended June 30, 2017, HCCC generated revenue of $1,930,658 and net income of $207,482 or $0.03 earnings per share, fully diluted. For the six months ended June 30, 2017, HCCC generated revenue of $3,797,503 and net income of $151,358 or $0.02 earnings per shares, fully diluted.

 

Andrew Hidalgo, CEO of HCCC, commented, “We are pleased to announce a very successful quarter, which included record revenue and earnings. In addition, our balance sheet net tangible asset value increased 38% from $492,278 on December 31, 2016 to $681,509 on June 30, 2017. As of June 30, 2017, HCCC had a backlog of project work to be completed of approximately $827,000 and an active bid list of potential projects of approximately $5.2 million. As we build shareholder value, HCCC will continue to focus on organic growth as well as seeking strategic acquisition candidates that can expand our geographic scope, add technical resources and increase the size of our customer base.”

 

About H/Cell Energy Corporation:

 

H/Cell Energy Corporation is a systems integrator that focuses on the design and implementation of clean energy solutions including solar, battery technology and hydrogen energy systems. In addition, through its Pride Group subsidiary based in Australia, the company also provides security systems integration. The company 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

CONDENSED CONSOLIDATED BALANCE SHEETS

 

    June 30, 2017     December 31, 2016  
    (Unaudited)        
ASSETS                
Current assets:                
Cash and cash equivalents   $ 293,769     $ 537,867  
Accounts receivable (net retention)     1,634,929       650,886  
Prepaid expenses     7,043       14,168  
Costs and earnings in excess of billings     27,166       91,904  
Total current assets     1,962,907       1,294,825  
                 
Property and equipment, net     102,076       99,816  
Security deposits and other non-current assets     8,599       8,497  
                 
Total assets   $ 2,073,582     $ 1,403,138  
                 
LIABILITIES AND STOCKHOLDERS’ EQUITY                
                 
Current liabilities:                
Accounts payable and accrued expenses   $ 1,062,732     $ 661,237  
Management fees payable – related party     46,000       52,000  
Billings in excess of costs and earnings     168,919       83,538  
Sales tax payable     114,422       114,085  
Total current liabilities     1,392,073       910,860  
                 
Commitments and contingencies                
                 
Stockholders’ equity                
Common Stock - $0.0001 par value; 25,000,000 shares authorized;
7,041,579 and 3,131,579 shares issued and outstanding
as of June 30, 2017 and December 31, 2016, respectively
    704       313  
Preferred Stock - $0.0001 par value; 5,000,000 shares authorized;
0 shares issued and outstanding
    -       -  
Additional paid-in capital     1,302,487       1,283,422  
Accumulated deficit     (589,293 )     (740,651 )
Accumulated other comprehensive loss     (32,389 )     (50,806 )
Total stockholders’ equity     681,509       492,278  
                 
TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY   $ 2,073,582     $ 1,403,138  

 

 
 

 

H/CELL ENERGY CORPORATION

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS – OTHER COMPREHENSIVE INCOME

 

    For the Three Months Ended June 30,    

For the Six Months Ended

June 30,

 
    2017     2016     2017     2016  
                         
Revenue                                
Construction income   $ 1,906,495     $ 1,531,479     $ 3,757,250     $ 2,747,483  
Related party     24,163       1,500       40,253       1,500  
                                 
Total revenue     1,930,658       1,532,979       3,797,503       2,748,983  
                                 
Cost of goods sold                                
Direct costs     1,147,909       990,723       2,561,729       1,904,985  
Direct costs – related party     34,440       1,500       50,345       1,500  
                                 
Total cost of goods sold     1,182,349       992,223       2,612,074       1,906,485  
                                 
Gross profit     748,309       540,756       1,185,429       842,498  
                                 
Operating expenses                                
Research and development     -       -       -       2,000  
General and administrative expenses     498,124       527,778       945,369       1,442,177  
Management fees – related party     45,000       38,000       91,000       77,000  
                         
Total operating expenses     543,124       565,778       1,036,369       1,521,177  
                                 
Income (Loss) from operations     205,185       (25,022 )     149,060       678,679  
                                 
Other income     2,297       7,767       2,298       7,671  
                                 
Net income (loss)   $ 207,482     $ (17,255 )   $ 151,358     $ (671,008 )
                                 
Other comprehensive income (loss), net                                
                                 
Change in foreign currency translation adjustment     7,048       43,108       18,417       54,376  
                         
Comprehensive income (loss)   $ 214,530     $ 25,853     $ 169,775     $ (616,632 )
                                 
Earnings (Loss) per share                                
Basic   $ 0.03     $ (0.01 )   $ 0.02     $ (0.26 )
Diluted   $ 0.03     $ (0.01 )   $ 0.02     $ (0.26 )
Weighted average common shares outstanding                                
Basic     7,039,357       2,709,357       6,355,468       2,571,387  
Diluted     7,948,091       2,709,357       7,259,155       2,571,387