“As of
Financial Summary for the Quarter Ended
- Cash and cash equivalents were approximately
$73.8 million as ofSeptember 30, 2020 , an increase of approximately$57.6 million as compared to approximately$16.2 million as ofDecember 31, 2019 . - Net sales were nil and remained the same for the same period of 2019.
- Loss from operations was approximately
$77,015 , due to our cost saving initiatives compared to approximately loss from operations of approximately$2.8 million . The decrease was mainly due to decreased bad debts expense of$2,692,953 during the three months endedSeptember 30, 2020 . - Net loss for three months ended
September 30, 2020 was$671,280 or$(0.25) per fully diluted share compared to a net loss of approximately$4.1 million or$(2.54) per fully diluted share for the three months endedSeptember 30, 2019 . This decrease in net loss was mainly due to the decrease operating expenses resulting from decrease in bad debts expense, and decrease in interest expense.
About
Safe Harbor Statement
This press release may contain certain "forward-looking statements" relating to the business of CREG and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including, but not limited to, the risks and uncertainties associated with market conditions and the satisfaction of customary closing conditions relating to the registered direct offering and those discussed in the Company's annual and periodic reports that are filed with the
CONSOLIDATED BALANCE SHEETS | |||||||
2020 (UNAUDITED) | 2019 | ||||||
ASSETS | |||||||
CURRENT ASSETS | |||||||
Cash | $ | 73,787,158 | $ | 16,221,297 | |||
Accounts receivable, net | 24,827,842 | 42,068,760 | |||||
Interest receivable on sales type leases | - | 5,245,244 | |||||
Prepaid expenses | 62,609 | 52,760 | |||||
Operating lease right-of-use assets, net | 5,891 | - | |||||
Other receivables | 45,641 | 1,031,143 | |||||
Total current assets | 98,729,141 | 64,619,204 | |||||
NON-CURRENT ASSETS | |||||||
Investment in sales-type leases, net | - | 8,287,560 | |||||
Long term deposit | - | 15,712 | |||||
Operating lease right-of-use assets, net | - | 54,078 | |||||
Property and equipment, net | 27,704,004 | 27,044,385 | |||||
Construction in progress | - | 23,824,202 | |||||
Total non-current assets | 27,704,004 | 59,225,937 | |||||
TOTAL ASSETS | $ | 126,433,145 | $ | 123,845,141 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
CURRENT LIABILITIES | |||||||
Accounts payable | $ | 2,253,884 | $ | 2,200,220 | |||
Taxes payable | 2,509,792 | 4,087,642 | |||||
Accrued interest on notes | 7,599 | - | |||||
Notes payable, net of unamortized OID | 591,974 | - | |||||
Accrued liabilities and other payables | 1,182,642 | 1,184,751 | |||||
Operating lease liability | - | 56,755 | |||||
Due to related parties | 28,590 | 41,174 | |||||
Interest payable on entrusted loans | 9,387,757 | 8,200,044 | |||||
Entrusted loan payable | 20,979,731 | 20,480,214 | |||||
Total current liabilities | 36,941,969 | 36,250,800 | |||||
NONCURRENT LIABILITIES | |||||||
Accrued interest on notes | - | 368,362 | |||||
Income tax payable | 5,782,625 | 5,782,625 | |||||
Notes payable, net of unamortized OID | - | 1,552,376 | |||||
Long term payable | 440,522 | 430,034 | |||||
Entrusted loan payable | 293,681 | 286,689 | |||||
Refundable deposit from customers for systems leasing | - | 544,709 | |||||
Total noncurrent liabilities | 6,516,828 | 8,964,795 | |||||
Total liabilities | 43,458,797 | 45,215,595 | |||||
CONTINGENCIES AND COMMITMENTS (NOTE 17 & 18) | |||||||
STOCKHOLDERS’ EQUITY | |||||||
Common stock, 3,001,146 shares and 2,032,721 shares issued and outstanding as of | 3,001 | 2,033 | |||||
Additional paid in capital | 119,128,530 | 116,682,374 | |||||
Statutory reserve | 14,667,404 | 14,525,712 | |||||
Accumulated other comprehensive loss | (3,959,045 | ) | (6,132,614 | ) | |||
Accumulated deficit | (46,865,542 | ) | (46,447,959 | ) | |||
82,974,348 | 78,629,546 | ||||||
TOTAL LIABILITIES AND EQUITY | $ | 126,433,145 | $ | 123,845,141 | |||
The accompanying notes are an integral part of these consolidated financial statements.
AND SUBSIDIARIES | |||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS | |||||||||||||||
(UNAUDITED) | |||||||||||||||
NINE MONTHS ENDED | THREE MONTHS ENDED | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Revenue | |||||||||||||||
Contingent rental income | $ | - | $ | 702,973 | $ | - | $ | - | |||||||
Interest income on sales-type leases | - | 173,360 | - | - | |||||||||||
Total operating income | - | 876,333 | - | - | |||||||||||
Operating expenses | |||||||||||||||
Bad debts (reversal) | (1,659,101 | ) | 5,508,377 | (9,479 | ) | 2,683,474 | |||||||||
Loss on disposal of systems | - | 1,250,731 | - | - | |||||||||||
General and administrative | 477,358 | 2,160,017 | 86,494 | 142,681 | |||||||||||
Total operating (income) expenses | (1,181,743 | ) | 8,919,125 | 77,015 | 2,826,155 | ||||||||||
Income (loss) from operations | 1,181,743 | (8,042,792 | ) | (77,015 | ) | (2,826,155 | ) | ||||||||
Non-operating income (expenses) | |||||||||||||||
Gain (loss) on note conversion | (496,853 | ) | 24,240 | (298,523 | ) | 24,240 | |||||||||
Interest expense-inducement on note conversion | - | (893,958 | ) | - | - | ||||||||||
Interest income | 124,305 | 120,903 | 51,688 | 38,293 | |||||||||||
Interest expense | (1,037,183 | ) | (5,888,819 | ) | (340,155 | ) | (2,094,899 | ) | |||||||
Other income (expenses), net | (47,903 | ) | 332,397 | (7,275 | ) | 1,919 | |||||||||
Total non-operating expenses, net | (1,457,634 | ) | (6,305,237 | ) | (594,265 | ) | (2,030,447 | ) | |||||||
Loss before income tax | (275,891 | ) | (14,348,029 | ) | (671,280 | ) | (4,856,602 | ) | |||||||
Income tax benefit | - | (3,041,884 | ) | - | (755,840 | ) | |||||||||
Net loss attributable to | (275,891 | ) | (11,306,145 | ) | (671,280 | ) | (4,100,762 | ) | |||||||
Other comprehensive items | |||||||||||||||
Foreign currency translation gain (loss) | 2,173,569 | (2,582,759 | ) | 3,456,157 | (2,486,200 | ) | |||||||||
Comprehensive income (loss) attributable to | $ | 1,897,678 | $ | (13,888,904 | ) | $ | 2,784,877 | $ | (6,586,962 | ) | |||||
Basic and diluted weighted average shares outstanding | 2,381,180 | 1,467,114 | 2,687,609 | 1,615,919 | |||||||||||
Basic and diluted loss per share | $ | (0.12 | ) | $ | (7.71 | ) | $ | (0.25 | ) | $ | (2.54 | ) | |||
* The basic and diluted loss per share are the same due to antidilutive options and warrants resulting from the Company’s net loss. |
The accompanying notes are an integral part of these consolidated financial statements.
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(UNAUDITED) | |||||||
NINE MONTHS ENDED | |||||||
2020 | 2019 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net loss | $ | (275,891 | ) | $ | (11,306,145 | ) | |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||||||
Amortization of OID and debt issuing costs of notes | 45,833 | 84,661 | |||||
Stock compensation expense | 10,999 | - | |||||
Operating lease expenses | 49,034 | - | |||||
Bad debts expense (reversal) | (1,659,101 | ) | 5,508,377 | ||||
Loss on disposal of 40% ownership of Fund Management Co | - | 46,761 | |||||
Loss on transfer of Chengli Boxing system | - | 628,170 | |||||
Loss on transfer of Xuzhou Huayu system | - | 399,601 | |||||
Loss on transfer of Shenqiu Phase I & II systems | - | 209,707 | |||||
Loss on disposal of fixed assets | - | 289 | |||||
Loss (gain) on note conversion | 496,853 | (24,240 | ) | ||||
Interest expense-inducement on note conversion | - | 893,958 | |||||
Changes in deferred tax | - | (3,044,371 | ) | ||||
Changes in assets and liabilities: | |||||||
Interest receivable on sales type leases | - | (171,506 | ) | ||||
Collection of principal on sales type leases | 13,959,334 | - | |||||
Accounts receivable | 43,765,943 | 64,306 | |||||
Prepaid expenses | (8,339 | ) | (20,320 | ) | |||
Other receivables | (3,141 | ) | (132,920 | ) | |||
Accounts payable | - | (2,857,402 | ) | ||||
Taxes payable | (2,133,778 | ) | (1,323,919 | ) | |||
Payment of lease liability | (57,442 | ) | - | ||||
Interest payable on entrusted loan | 962,052 | 5,551,651 | |||||
Accrued liabilities and other payables | 46,968 | (109,867 | ) | ||||
Refundable deposit for systems leasing | - | (481,462 | ) | ||||
Net cash provided by (used in) operating activities | 55,199,324 | (6,084,671 | ) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Proceeds from disposal of property & equipment | - | 5,106 | |||||
Net cash provided by investing activities | - | 5,106 | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Issuance of notes payable | - | 2,000,000 | |||||
Issuance of common stock | 497,187 | 3,309,475 | |||||
Net cash provided by financing activities | 497,187 | 5,309,475 | |||||
EFFECT OF EXCHANGE RATE CHANGE ON CASH | 1,869,350 | (1,607,514 | ) | ||||
NET INCREASE (DECREASE) IN CASH | 57,565,861 | (2,377,604 | ) | ||||
CASH, BEGINNING OF PERIOD | 16,221,297 | 53,223,142 | |||||
CASH, END OF PERIOD | $ | 73,787,158 | $ | 50,845,538 | |||
Supplemental cash flow data: | |||||||
Income tax paid | $ | - | $ | 223,369 | |||
Interest paid | $ | - | $ | - | |||
Supplemental disclosure of non-cash operating activities | |||||||
Transfer of Tian’an project from construction in progress to accounts receivable | $ | 23,771,386 | $ | - | |||
Supplemental disclosure of non-cash operating and financing activities | |||||||
Transfer of | $ | - | $ | 34,931,358 | |||
Conversion of convertible debt into common shares | $ | - | $ | 1,272,000 | |||
Conversion of long-term notes into common shares | $ | 1,442,086 | $ | - |
The accompanying notes are an integral part of these consolidated financial statements.
Investor Relations Inquiries:
vivianchen@irimpact.com
Source:
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