Financial Performance - The Company reported a net loss of $1,559,012 for the year ended December 31, 2024, compared to a net loss of $746,786 for 2023, indicating an increase in losses of approximately 108.5%[299] - Total operating expenses for 2024 were $1,093,468, up from $798,473 in 2023, reflecting a year-over-year increase of approximately 37%[324] - The net loss for the year ended December 31, 2024, was $1,559,012, an increase of $812,226 from a net loss of $746,786 in 2023, driven by increased operating expenses and impairment provisions[330] - Net non-operating expenses for 2024 were $451,547, a significant decline from non-operating income of $148,387 in 2023, largely due to a $200,000 bad debt provision[328] - The company reported a total accumulated deficit of $46,864,738 as of December 31, 2024, compared to $45,305,726 in 2023[348] Operational Status - The Company currently holds five power generating systems that are not producing electricity, indicating a need for operational improvements[299] - The company incurred an operating loss of $1.1 million and generated negative operating cash flows of $10.8 million for the year ended December 31, 2024[338] Cash Flow and Liquidity - The cash flow forecast suggests the Company will have sufficient cash to fund operations for the next 12 months[299] - As of December 31, 2024, the company had cash and equivalents of $25,341, with current liabilities of $13.10 million and a current ratio of 9.25:1[331] - Net cash used in operating activities decreased to $10,764,096 in 2024 from $68,099,899 in 2023, mainly due to reduced cash outflow related to an entrusted loan[332] - The company believes it has sufficient cash and access to commercial institutions to meet its working capital needs as of December 31, 2024[350] Strategic Direction - The Company is transitioning to an energy storage integrated solution provider and is exploring opportunities in high-growth potential industries such as large-scale photovoltaic and wind power stations[298] - The Company plans to pursue disciplined and targeted expansion strategies in market areas currently not served[298] Revenue Generation - Total sales for the years ended December 31, 2024 and 2023 were reported as $0, indicating no revenue generation during these periods[324] - The Company has not recognized any income from Erdos TCH due to uncertainties regarding collection, despite expecting compensation of RMB 1 million ($145,460) per month until operations resume[307] Financial Instruments and Guarantees - The company has not entered into any financial guarantees or derivative contracts that are indexed to its shares[349] Accounting Standards - The Company’s financial statements are prepared in accordance with US GAAP and in US Dollars[296]
Smart Powerr (CREG) - 2024 Q4 - Annual Report