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 10, 2018

 

 

 

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 August 10, 2018, H/Cell Energy Corporation announced its operating results for the second fiscal quarter ended June 30, 2018. 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 10, 2018, 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 10, 2018 By: /s/ ANDREW HIDALGO
    Andrew Hidalgo
    Chief Executive Officer

 

 

  3

 
 

 

 

Exhibit 99.01

 

H/Cell Energy Reports FY2018 Second Quarter Financial Results

 

Flemington, NJ, August 10, 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 2018 second quarter ended June 30, 2018.

 

For the three months ended June 30, 2018, HCCC generated revenue of $2,009,825 and net income of $13,955 or $0.00 in earnings per share, fully diluted. For the six months ended June 30, 2018, HCCC generated revenue of $3,736,149 and a net loss of $97,014 or $(0.01) in earnings per share.

 

Matthew Hidalgo, CFO of HCCC, commented, “We are very pleased to announce a profitable quarter with record revenue for the company. We had a profitable quarter inclusive of non-cash charges of $64,432 which does not affect the cash flow performance or working capital of HCCC. The company is performing well and is creating more revenue producing opportunities as indicated by our active bid list, which totaled approximately $8.1 million as of June 30, 2018. Our financial condition remains solid with $460,538 in cash, $3,792,845 in assets and $427,535 in working capital as of June 30, 2018. Although we are still a young company from a shareholder value perspective, we continue to grow and add value for our investors. HCCC will be making an effort to generate more investor interest in the months ahead. We remain very encouraged about the future.”

 

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

CONDENSED CONSOLIDATED BALANCE SHEETS

 

    June 30, 2018     December 31, 2017  
    (Unaudited)     (Audited)  
ASSETS                
Current assets                
Cash and cash equivalents   $ 460,538     $ 455,700  
Accounts receivable (net retention)     1,321,820       808,050  
Prepaid expenses     14,467       14,669  
Costs and earnings in excess of billings     58,970       51,531  
Total current assets     1,855,795       1,329,950  
                 
Property and equipment, net     403,941       102,573  
Security deposits and other non-current assets     21,344       8,416  
Deferred tax asset     44,257       44,257  
Customer lists, net     93,887       -  
Goodwill     1,373,621       -  
                 
Total assets   $ 3,792,845     $ 1,485,196  
                 
LIABILITIES AND STOCKHOLDERS’ EQUITY                
                 
Current liabilities                
Accounts payable and accrued expenses   $ 951,769     $ 631,385  
Management fees payable – related party     15,000       31,257  
Earn out payable     182,056          
Billings in excess of costs and earnings     93,099       87,206  
Sales and withholding tax payable     59,894       61,239  
Current equipment notes payable     33,407       -  
Current capital lease payable     67,289       -  
Income tax payable     25,746       98,313  
Total current liabilities     1,428,260       909,400  
                 
Noncurrent liabilities                
Capital leases     166,965       -  
Equipment notes payable     128,919       -  
Convertible note payable – related party, net of discount     8,891       -  
Total noncurrent liabilities     304,775       -  
                 
Total liabilities     1,733,035       909,400  
                 
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; 7,586,024 and 7,041,579 shares issued and outstanding as of June 30, 2018 and December 31, 2017, respectively     758       704  
Additional paid-in capital     2,949,459       1,335,656  
Accumulated deficit     (828,768 )     (731,754 )
Accumulated other comprehensive loss     (61,639 )     (28,810 )
Total stockholders’ equity     2,059,810     $ 575,796  
                 
TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY   $ 3,792,845     $ 1,485,196  

 

     
     

 

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,

 
    2018     2017     2018     2017  
                         
Revenue                                
Construction income   $ 2,009,825     $ 1,906,495     $ 3,704,360     $ 3,757,250  
Related party     -       24,163       31,789       40,253  
Total revenue     2,009,825       1,930,658       3,736,149       3,797,503  
                                 
Cost of goods sold                                
Direct costs     1,253,043       1,147,909       2,462,456       2,561,729  
Direct costs – related party     -       34,440       31,617       50,345  
Total cost of goods sold     1,253,043       1,182,349       2,494,073       2,612,074  
                                 
Gross profit     756,782       748,309       1,242,076       1,185,429  
                                 
Operating expenses                                
General and administrative expenses     687,831       498,124       1,243,015       945,369  
Management fees – related party     19,500       45,000       39,000       91,000  
Total operating expenses     707,331       543,124       1,282,015       1,036,369  
                                 
Income (loss) from operations     49,451       205,185       (39,939 )     149,060  
Income tax provision (benefit)     -       -       -       -  
                                 
Income (loss) before other income and expense   $ 49,451     $ 205,185     $ (39,939 )   $ 149,060  
                                 
Other income (loss)     (6,738 )     2,297       (6,738 )     2,298  
                                 
Other expenses                                
Interest expense     10,146       -       14,092       -  
Interest expense – related party     18,676       -       32,891       -  
Loss on fixed asset disposal     (64 )     -       3,354       -  
Total other expenses     28,758       -       50,337       -  
                                 
Net income (loss)   $ 13,955     $ 207,482     $ (97,014 )   $ 151,358  
                                 
Other comprehensive income (loss), net                                
                                 
Foreign currency translation adjustment     (22,570 )     7,048       (32,829 )     18,417  
                                 
Comprehensive income (loss)   $ (8,615 )   $ 214,530     $ (129,843 )   $ 169,775  
                                 
Earnings (loss) per share                                
Basic   $ 0.00     $ 0.03     $ (0.01 )   $ 0.02  
Diluted   $ 0.00     $ 0.03     $ (0.01 )   $ 0.02  
Weighted average common shares outstanding                                
Basic     7,483,980       7,039,357       7,450,235       6,355,468  
Diluted     8,819,225       7,948,091       7,450,235       7,259,155