Financial Performance - For the year ended December 31, 2023, the company reported a net loss of $746,786, a significant improvement from a net loss of $4,457,327 in 2022, indicating a reduction in losses by approximately 83.2%[295] - The company has an accumulated deficit of $60.50 million as of December 31, 2023[295] - Total sales for the years ended December 31, 2023 and 2022 were $0[314] - Operating expenses decreased by $3,081,960 or 79.4% from $3,880,433 in 2022 to $798,473 in 2023, primarily due to reduced R&D and litigation expenses[315] - Net non-operating income for 2023 was $148,387, a significant improvement from non-operating expenses of $507,242 in 2022[316] - Net loss for 2023 was $746,786, a decrease of $3,710,541 compared to a net loss of $4,457,327 in 2022[317] - The effective income tax rate for 2023 was 14.9%, compared to 1.6% in 2022[317] - The company's unrestricted accumulated deficit as of December 31, 2023, was $60,497,371, with total accumulated deficit of $45,305,726[335] Cash Flow and Liquidity - The company’s cash flow forecast indicates sufficient cash to fund operations for the next 12 months from the date of issuance of the financial statements[295] - As of December 31, 2023, the company had cash and equivalents of $32,370 and current liabilities of $23.87 million, resulting in a current ratio of 5.72:1[319] - Net cash used in operating activities was $68,099,899 in 2023, compared to $351,880 in 2022, primarily due to increased cash outflow on advance to suppliers[320] - The company has sufficient cash and access to commercial loans to meet its working capital needs, supported by the Chinese government's backing for energy-saving businesses[338] - The company has a history of achieving financing objectives due to stable cash inflows and good credit ratings[338] Business Strategy and Operations - The company is transitioning to an energy storage integrated solution provider and is actively seeking opportunities in high-growth potential industries, including large-scale photovoltaic and wind power stations[294] - The company plans to pursue disciplined and targeted expansion strategies in market areas currently not served[294] - The company intends to raise additional funds through private or public offerings or bank loans to support its operations and business plan[296] Joint Ventures and Contracts - The company has not recognized any income from its joint venture, Erdos TCH, due to uncertainties regarding the collection of compensation during its operational hiatus[299] - Erdos TCH has a total power capacity of 45 MW, with two systems in Phase I (18 MW) and three systems in Phase II (27 MW)[299] - The company holds five power generating systems through Erdos TCH, which are currently not producing electricity[295] - The company entered a purchase agreement with Hubei Bangyu New Energy Technology Co., Ltd. for $82.3 million to purchase energy storage battery systems, with a prepayment of $65.9 million made as of December 31, 2023[321] - As of December 31, 2023, the company has total contractual obligations of $16,438,052, with $5,225,033 due within one year and $11,213,019 in entrusted loans[338] - The company had a short-term loan of $68,730,851 to Jinan Youkai Engineering Consulting Co., Ltd. as of December 31, 2023, with repayment expected in January 2024[324] Subsidiaries - The company’s subsidiaries include Yinghua and Sifang, with Sifang's registered capital at $29.80 million[297]

Financial Performance - For the nine months ended September 30, 2023, the Company reported a net loss of $518,069, compared to a net loss of $1,113,906 for the same period in 2022, indicating a 53% improvement in losses year-over-year [135]. - Net loss for the nine months ended September 30, 2023, was $518,069, a decrease of $595,837 compared to a net loss of $1,113,906 in 2022 [160]. - Net loss for the three months ended September 30, 2023, was $180,723, a decrease of $266,914 compared to a net loss of $447,637 in 2022 [166]. - Total sales for the nine months ended September 30, 2023, and 2022 were $0 [158]. - Operating expenses increased by $53,841 or 9.7% to $606,105 for the nine months ended September 30, 2023, primarily due to increased audit fees and professional service expenses [158]. - Operating expenses for the three months ended September 30, 2023, decreased by $21,888 or 13% to $146,870 compared to the same period in 2022 [164]. - Net non-operating income for the nine months ended September 30, 2023, was $185,176, compared to non-operating expenses of $525,131 for the same period in 2022 [159]. - Income tax expense for the nine months ended September 30, 2023, was $97,140, with an effective income tax rate of 23.1% [160]. Cash and Liquidity - The Company had cash on hand of $67,950,506 as of September 30, 2023, which is expected to satisfy its liquidity needs for the next 12 months [135]. - Cash and equivalents as of September 30, 2023, were $67.95 million, with a current ratio of 5.79:1 and a liability-to-equity ratio of 0.25:1 [167]. - Net cash used in operating activities was $68,264,743 for the nine months ended September 30, 2023, compared to $309,125 in 2022 [168]. - The company believes it has sufficient cash and access to commercial loans to meet its working capital needs, supported by the Chinese government's backing for energy-saving businesses [184]. Accumulated Deficit and Obligations - The accumulated deficit of the Company reached $60.27 million as of September 30, 2023 [135]. - As of September 30, 2023, the company reported an unrestricted accumulated deficit of $(60,268,346) and total accumulated deficit of $(45,077,009) compared to $(59,726,943) and $(44,558,940) respectively as of December 31, 2022, indicating a slight increase in deficits year-over-year [181]. - The company's total contractual obligations as of September 30, 2023, amount to $16,429,376, with $5,368,002 due within one year and $11,061,374 in entrusted loans [184]. - The company is required by PRC corporate law to maintain a statutory reserve of at least 10% of its annual after-tax profit, resulting in restricted retained earnings of $15,191,337 as of September 30, 2023, up from $15,168,003 at the end of 2022 [181]. Business Operations and Strategy - The Company is in the process of transforming into an energy storage integrated solution provider and is actively seeking expansion opportunities in high-growth potential industries [132]. - The Company has not recognized any income from its joint venture with Erdos TCH due to uncertainties regarding collection, despite receiving monthly compensation of RMB 1 million ($145,460) until operations resume [140]. - The Company’s subsidiaries, including Yinghua and Sifang, are primarily engaged in energy-saving solutions and financial leasing, with significant operations derived from Shanghai TCH and its subsidiaries [137]. - The Company’s revenue recognition for sales-type leases occurs at the inception of the lease, with revenue recorded when collection of payments is probable [150]. Regulatory and Economic Environment - The Company's business operations are influenced by the political, economic, and legal environments in the PRC, which may affect its financial condition and results [148]. - The company's operations are primarily in the PRC, making its earnings susceptible to fluctuations in foreign currency exchange rates, particularly between the U.S. dollar and RMB [185]. Future Funding - Management plans to raise additional funds through private or public offerings or loans, although there are no guarantees regarding the success of these efforts [136]. - The company entered a purchase agreement with Hubei Bangyu New Energy Technology Co., Ltd. for $82.3 million to purchase energy storage battery systems [170].

Financial Performance - For the six months ended June 30, 2023, the Company reported a net loss of $337,346, compared to a net loss of $666,269 for the same period in 2022, indicating a 49.3% improvement in losses year-over-year[137]. - For the three months ended June 30, 2023, the Company had a net loss of $247,842, slightly higher than the net loss of $224,810 for the same period in 2022, reflecting a 10.2% increase in quarterly losses[137]. - The Company has an accumulated deficit of $60.08 million as of June 30, 2023, highlighting ongoing financial challenges[137]. - Total sales for the six months ended June 30, 2023 and 2022 were $0[162]. - Operating expenses for the six months ended June 30, 2023 were $459,235, an increase of $75,729 or 19.7% compared to $383,506 in 2022[163]. - Net cash used in operating activities was $69,042,292 for the six months ended June 30, 2023, compared to $167,599 in 2022[174]. - Income tax expense for the six months ended June 30, 2023 was $62,492, compared to $23,557 in 2022[166]. - The consolidated effective income tax rate for the six months ended June 30, 2023 was 22.7%, compared to 3.7% in 2022[166]. - The Company has an unrestricted accumulated deficit of $(60,082,175) as of June 30, 2023, compared to $(59,726,943) as of December 31, 2022[186]. - The total accumulated deficit stands at $(44,896,286) as of June 30, 2023, compared to $(44,558,940) as of December 31, 2022[186]. Liquidity and Financial Position - As of June 30, 2023, the Company had cash on hand of $456,155 and a loan receivable of $67,120,596 (RMB 485.0 million), which was fully repaid on July 3, 2023, ensuring liquidity for the next 12 months[138]. - As of June 30, 2023, the Company had cash and equivalents of $456,155 and a current ratio of 5.75:1[173]. - The Company believes it has sufficient cash and access to loans to meet its working capital needs as of June 30, 2023[189]. Business Strategy and Operations - The Company is transitioning to become an energy storage integrated solution provider, targeting high-growth potential industries such as industrial complexes and renewable energy sectors[135]. - The Company aims to implement disciplined expansion strategies in market areas currently not served, focusing on energy storage technologies[135]. - The Company plans to raise additional funds through private or public offerings or bank loans to support its business transformation and expansion efforts[139]. - The Company has not recognized any income from its joint venture with Erdos TCH due to uncertainties regarding collection, despite ongoing compensation of RMB 1 million ($145,460) per month until operations resume[144]. - The Company’s subsidiaries, including Xi'an TCH and Zhonghong, are primarily engaged in providing energy-saving solutions and services, contributing significantly to the Company’s consolidated assets and liabilities[152]. Financial Obligations and Regulations - The Company's contractual obligations total $16,451,051 as of June 30, 2023, with $5,460,094 due within one year[189]. - The Company has not entered into any financial guarantees or derivative contracts that would affect its financial obligations[187]. - PRC regulations require foreign-invested enterprises to allocate at least 10% of their annual after-tax profit to surplus reserves until it reaches 50% of registered capital[183]. - The Company's PRC subsidiaries are restricted from distributing cash dividends until statutory reserves are met, which may affect the Company's ability to conduct operations[181]. - The Company relies on dividends from its PRC subsidiaries for working capital, but these subsidiaries have not transferred any earnings to the Company to date[179]. Exchange Rate Impact - Exchange rate fluctuations may impact the Company's earnings, as operations are primarily conducted in RMB[190].

Financial Performance - For the three months ended March 31, 2023, the Company reported a net loss of $89,504, compared to a net loss of $441,459 for the same period in 2022, indicating a 79.8% improvement in losses year-over-year[130] - Net loss for the three months ended March 31, 2023 was $89,504, a decrease of $351,955 from a net loss of $441,459 for the same period in 2022[159] - Total sales for the three months ended March 31, 2023 and 2022 were $0[156] - Operating expenses decreased by $110,952 or 56.7% to $84,828 for the three months ended March 31, 2023, compared to $195,780 for the same period in 2022[157] - Income tax expense was $4,534 for the three months ended March 31, 2023, compared to $17,707 for the same period in 2022[159] - The Company recorded $88,195 in interest income for the three months ended March 31, 2023, offset by $111,104 in interest expense[158] Cash and Liabilities - The Company had cash on hand of $39,406 and a loan receivable of $140,614,361 (RMB 966.0 million) from Jinan Youkai Engineering Consulting Co., Ltd., which was fully repaid on April 3, 2023[131] - Cash and equivalents as of March 31, 2023 were $39,406, with current liabilities of $24.10 million and a current ratio of 5.85:1[161] - The Company had a liability-to-equity ratio of 0.25:1 as of March 31, 2023[161] - As of March 31, 2023, the company has total contractual obligations of $17,158,397, with $5,601,075 due in 1 year or less[175] - The company has sufficient cash and access to loans to meet its working capital needs, supported by the Chinese government's backing for energy-saving businesses[175] Business Strategy and Operations - The Company plans to pursue disciplined and targeted expansion strategies into new market areas, including industrial and commercial complexes and large-scale photovoltaic and wind power stations[128] - The Company is transforming into an energy storage integrated solution provider, exploring applications of energy storage technologies in high-growth potential industries[128] - The Company has not recognized any income from the Erdos TCH joint venture due to uncertainty of collection, despite receiving monthly compensation of RMB 1 million ($145,460) until operations resume[137] - The Company owns 100% of Xi'an Zhonghong New Energy Technology Co., Ltd., which provides energy-saving solutions and services[139] - The Company recorded a loss of $624,133 related to the transfer of the Chengli CDQ WHPG station, which was part of a loan repayment agreement[141] Market and Economic Environment - The Company’s operations are significantly influenced by the political, economic, and legal environments in the People's Republic of China[148] - The company is exposed to exchange rate risk due to operations primarily conducted in the PRC, affecting earnings when transactions are denominated in RMB[177] Accumulated Deficit - As of March 31, 2023, the Company had an accumulated deficit of $59.82 million[130] - The Company’s unrestricted accumulated deficit was $(59,819,037) as of March 31, 2023[172] Cash Flow - Net cash used in operating activities was $70,282 for the three months ended March 31, 2023, compared to $38,420 for the same period in 2022[162] - Net cash used in investing activities was $141,070,591 for the three months ended March 31, 2023, primarily due to a short-term loan to Jinan Youkai Engineering Consulting Co., Ltd[163]

Financial Performance - Net cash used in operating activities decreased to $351,880 in 2022 from $1,612,458 in 2021, primarily due to reduced cash outflow on prepaid expenses by $1,683,855 and increased cash inflow from accrued liabilities by $2,245,459[42]. - Total operating expenses increased to $3,880,433 in 2022, a rise of 380.2% from $808,154 in 2021, mainly driven by increased litigation expenses of $2,281,277 and R&D expenses of $850,000[66]. - Net loss for the year ended December 31, 2022, was $4,457,327, a decrease of $7,772,863 compared to a net loss of $12,230,190 in 2021, attributed to decreased impairment loss on long-term equity investment by $11,625,195[66]. - Net loss for the year was $4,457,327, compared to a net loss of $12,230,190 in the previous year, representing a 63.6% improvement[104]. - Cash at the end of the year was $138,813,673, down from $152,011,887, a decrease of about 8.7%[104]. - Total stockholders' equity decreased from $124,758,185 to $110,793,193, a decline of about 11.2%[100]. - The Company recorded a total income tax expense of $69,652 for the year ended December 31, 2022, compared to a benefit of $(53,140) in 2021[96]. Revenue and Income Recognition - The company has not recognized any income from the Erdos TCH joint venture due to uncertainty of collection, despite receiving monthly compensation of RMB 1 million ($145,460) until operations resume[31]. - The company’s revenue recognition policy states that sales and cost of sales are recognized at the inception of the lease[36]. Assets and Liabilities - Total assets decreased from $153,272,462 to $139,135,705, a decline of approximately 9.2%[100]. - Total current liabilities increased slightly from $23,883,024 to $24,383,887, an increase of approximately 2.1%[100]. - The outstanding principal balance of the Promissory Note as of December 31, 2022, was $5,697,727, with accrued interest of $261,035[86]. - The company’s total contractual obligations amount to $17,361,922, including notes payable and entrusted loans[49]. Investments and Projects - The company entered a Market Research and Project Development Service Agreement for $1,150,000 to assist in market research for the new energy industry[67]. - Xi'an Zhonghong transferred the Xuzhou Huayu Project for RMB 120 million ($17.52 million) and Shenqiu Phase I & II Projects for RMB 127.066 million ($18.55 million) to Mr. Bai as part of a loan repayment[111]. - The total repayment amount for the projects was RMB 247.066 million ($36.07 million), which was settled through the transfer of equity shares of Xi'an Hanneng to HYREF[113]. - The company had an investment of RMB 75 million ($11.63 million) in the HYREF fund, which was fully impaired due to uncertainty regarding collection[118]. Tax and Deferred Tax - The Company has a net operating loss (NOL) carryforward of $2.57 million for U.S. income taxes as of December 31, 2022[94]. - The Company's PRC subsidiaries had $36.47 million in NOL that can be carried forward for five years[95]. - The effective income tax rate for the Company's Chinese subsidiaries was 25% for both 2022 and 2021[92]. - As of December 31, 2022, total deferred tax assets amounted to $17.18 million, a decrease of 13.9% from $19.95 million in 2021[139]. Legal and Litigation - The company accrued $2.20 million in litigation expenses as of December 31, 2022[178]. - Xi'an TCH paid RMB 261 million ($37.58 million) as an out-of-court settlement to Hongyuan[177]. Stock and Financing Activities - The Company sold 3,260,000 shares of common stock at $11.522 per share, raising approximately $38.25 million in proceeds[87]. - The company issued common stock amounting to $37,561,721 during the financing activities[104]. - The Company returned $691,320 in excess proceeds to the CEO in April 2021 after amending the share purchase agreement[87]. - As of December 31, 2022, the Company had 30,411 outstanding warrants with an average exercise price of $14.0[88]. - The company entered into a Note Purchase Agreement on December 4, 2020, issuing a Promissory Note of $3.15 million with an interest rate of 8%[121]. - The company entered an investment banking agreement for a registered securities offering of up to $20 million, with a retainer fee of 15,000 shares[182]. Miscellaneous - The company’s organizational structure includes multiple wholly-owned subsidiaries focused on energy-saving solutions and financial leasing[28]. - The Company believes its R&D efforts are among the best in the waste heat, gas, and pressure to energy industry[172]. - The common welfare fund allows the Company to transfer 5% to 10% of its net income for employee benefits, but the Company does not participate in this fund[175]. - The Company’s sales, purchases, and expenses are denominated in RMB, and the RMB is not freely convertible into foreign currencies under current law[176]. - The present value of lease liabilities is $62,178 as of December 31, 2023[180]. - The CFO's monthly salary is RMB 16,000 ($2,200) with a potential grant of no less than 5,000 shares annually, pending Board approval[181]. - An Exchange Agreement was entered into on January 6, 2023, resulting in the delivery of 63,025 shares for a new Promissory Note of $150,000[183].

Financial Performance - For the nine months ended September 30, 2022, the company reported a net loss of $1,113,906 compared to a net income of $1,386,773 for the same period in 2021[134]. - Net loss for the nine months ended September 30, 2022, was $1,113,906, an increase of net loss of $2,500,679 compared to net income of $1,386,773 in 2021[160]. - Net cash used in operating activities for the nine months ended September 30, 2022, was $309,125, a decrease from $1,583,918 in 2021[167]. - Net non-operating expense for the nine months ended September 30, 2022, was $525,131 compared to non-operating income of $2,063,914 in 2021[159]. - Income tax expense for the nine months ended September 30, 2022, was $36,511, compared to an income tax benefit of $87,051 in 2021[160]. - Net loss for the three months ended September 30, 2022, was $447,637, a decrease of $108,937 compared to $556,574 in 2021[165]. Cash and Liquidity - As of September 30, 2022, the company had $136.22 million in cash, sufficient to meet its estimated liquidity needs for the next 12 months[134]. - Cash and equivalents as of September 30, 2022, were $136.22 million, with a current ratio of 6.45:1 and a liability-to-equity ratio of 0.23:1[166]. - The Company has sufficient cash in the bank of $136.22 million as of September 30, 2022, to meet its working capital needs[184]. Operating Expenses - Operating expenses for the nine months ended September 30, 2022, were $552,264, a decrease of $211,928 or 27.7% compared to $764,192 in 2021[158]. - Operating expenses for the three months ended September 30, 2022, were $168,758, a decrease of $211,282 or 55.6% compared to $380,040 in 2021[163]. Accumulated Deficit and Obligations - The company has an accumulated deficit of $56.38 million as of September 30, 2022[134]. - The Company has an unrestricted accumulated deficit of $(56,382,103) as of September 30, 2022, compared to $(55,281,680) as of December 31, 2021[181]. - Total contractual obligations as of September 30, 2022, amount to $17,098,003, with $5,911,991 due within one year and $11,186,012 due after one year[184]. Business Strategy and Operations - The company is transforming into an energy storage integrated solution provider and plans to expand into new market areas with high growth potential[131]. - The company is actively exploring opportunities to apply energy storage technologies to various industries, including large-scale photovoltaic and wind power stations[131]. - The company intends to raise additional funds through private or public offerings or bank loans to support its business plan[135]. Joint Ventures and Income Recognition - The company has two power generation systems with a total capacity of 45 MW in its joint venture with Erdos Metallurgy Co., Ltd.[141]. - The company has not recognized any income from its joint venture due to uncertainty of collection, despite receiving monthly compensation of RMB 1 million ($145,460) from Erdos during the operational downtime[141]. Regulatory and Dividend Restrictions - The Company relies on dividends from its PRC subsidiaries for working capital, but these subsidiaries are restricted in their ability to pay dividends due to PRC regulations[176]. - The Company’s ability to conduct operations may be adversely affected if its subsidiaries cannot pay dividends or make cash payments when needed[176]. - The Company’s operations are primarily conducted through its subsidiaries, which are subject to PRC regulations on capital transfers and dividend payments[175]. - The Company is subject to covenants and consent requirements that may restrict its subsidiaries' ability to distribute profits[175]. - The Company's PRC subsidiaries are required to set aside at least 10% of their annual after-tax profit as statutory surplus reserves until the cumulative amount reaches 50% of their registered capital[178]. Impact of External Factors - The company’s operations have been adversely impacted by periodic short-term lockdowns and travel restrictions due to COVID-19[132].