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): November 9, 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

1185 Avenue of the Americas, 37 th Floor

New York, New York 10036

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 November 9, 2017, H/Cell Energy Corporation announced its operating results for the third fiscal quarter ended September 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 November 9, 2017, issued by H/Cell Energy Corporation*

 

 

* Furnished herewith.

 

     
 

 

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: November 9, 2017 By: /s/ ANDREW HIDALGO
    Andrew Hidalgo
    Chief Executive Officer

 

     
 

 

Exhibit 99.01

 

H/Cell Energy Reports FY2017 Third Quarter Results

 

Flemington, NJ, November 9, 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 third fiscal quarter ended September 30, 2017.

 

For the three months ended September 30, 2017, HCCC generated revenue of $1,338,571 and a net loss of $52,446 or ($0.01) in earnings per share, fully diluted. For the nine months ended September 30, 2017, HCCC generated revenue of $5,136,074 and net income of $98,912 or $0.01 in earnings per share, fully diluted.

 

Andrew Hidalgo, CEO of HCCC, commented, “We are pleased to be profitable year-to-date through nine months. We experienced some project completion delays in the third quarter, however, our Australian operation was profitable and they are positioned nicely for the fourth quarter with approximately $962,000 of backlog yet to be invoiced. In addition, we have $5.9 million in active bids. From a balance sheet perspective, HCCC is healthy with over $400,000 in cash and assets of approximately $1.4 million. We look forward to a strong finish for FY2017.”

 

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, HCCC also provides 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

CONDENSED CONSOLIDATED BALANCE SHEETS

 

    September 30, 2017     December 31, 2016  
      (Unaudited)          
ASSETS                
Current assets:                
Cash and cash equivalents   $ 421,071     $ 537,867  
Accounts receivable (net retention)     817,657       650,886  
Prepaid expenses     13,675       14,168  
Costs and earnings in excess of billings     15,641       91,904  
Total current assets     1,268,044       1,294,825  
                 
Property and equipment, net     104,764       99,816  
Security deposits and other non-current assets     8,583       8,497  
                 
Total assets   $ 1,381,391     $ 1,403,138  
                 
LIABILITIES AND STOCKHOLDERS’ EQUITY                
                 
Current liabilities:                
Accounts payable and accrued expenses   $ 536,340     $ 661,237  
Management fees payable – related party     47,000       52,000  
Billings in excess of costs and earnings     87,736       83,538  
Sales tax payable     58,739       114,085  
Total current labilities     729,815       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 September 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     1,319,072       1,283,422  
Accumulated deficit     (641,739 )     (740,651 )
Accumulated other comprehensive loss     (26,461 )     (50,806 )
Total stockholders’ equity     651,576       492,278  
                 
TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY   $ 1,381,391     $ 1,403,138  

 

 

     
 

 

H/CELL ENERGY CORPORATION

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS – OTHER COMPREHENSIVE INCOME

 

    For the Three Months Ended September 30,    

For the Nine Months

Ended September 30,

 
    2017     2016     2017     2016  
          (As restated)           (As restated)  
Revenue                                
Construction income   $ 1,292,905     $ 1,284,362     $ 5,050,155     $ 4,031,845  
Related party     45,666       -       85,919       1,500  
                                 
Total revenue     1,338,571       1,284,362       5,136,074       4,033,345  
                                 
Cost of goods sold                                
Direct costs     870,369       891,876       3,432,098       2,796,861  
Direct costs – related party     37,304       -       87,649       1,500  
                                 
Total cost of goods sold     907,673       891,876       3,519,747       2,798,361  
                                 
Gross profit     430,898       392,486       1,616,327       1,234,984  
                                 
Operating expenses                                
Research and development     -       -       -       2,000  
General and administrative expenses     437,344       347,194       1,379,415       1,790,700  
Management fees – related party     46,000       34,000       138,000       102,000  
                                 
Total operating expenses     483,344       381,194       1,517,415       1,894,700  
                                 
Income (Loss) from operations     (52,446 )     11,292       98,912       (659,716 )
                                 
Net income (loss)   $ (52,446 )   $ 11,292     $ 98,912     $ (659,716 )
                                 
Other comprehensive income (loss), net                                
                                 
Foreign currency translation adjustment     5,928       127,487       24,345       181,863  
                                 
Comprehensive income (loss)   $ (46,518 )   $ 138,779     $ 123,257     $ (477,853 )
                                 
Earnings (Loss) per share                                
Basic   $ (0.01 )   $ 0.00     $ 0.02     $ (0.24 )
Diluted   $ (0.01 )   $ 0.00     $ 0.01     $ (0.24 )
Weighted average common shares outstanding                                
Basic     7,084,436       3,131,579       6,601,873       2,760,170  
Diluted     7,962,049       3,131,579       7,472,520       2,760,170