Smart Powerr (US:CREG)2025-11-13 21:30Financial Performance - Total revenue for the nine months ended September 30, 2025, was $90,820, compared to $173,659 for the three months ended September 30, 2025[15]. - Gross profit for the three months ended September 30, 2025, was $79,631, resulting in a gross margin of approximately 45.8%[15]. - Operating expenses for the three months ended September 30, 2025, were $2,480,809, significantly higher than $747,540 for the same period in 2024, indicating an increase of approximately 231%[15]. - The net loss for the three months ended September 30, 2025, was $2,429,650, compared to a net loss of $952,285 for the same period in 2024, reflecting an increase in losses of approximately 155%[15]. - For the nine months ended September 30, 2025, the company reported a net loss of $2,429,650 compared to a net loss of $952,285 for the same period in 2024[21]. - The company generated $173,659 in revenue for the nine months ended September 30, 2025, while no revenue was reported for the same period in 2024[32]. Assets and Liabilities - Total assets as of September 30, 2025, were $132,973,469, up from $121,234,786 as of December 31, 2024, representing an increase of approximately 9.3%[14]. - Total stockholders' equity as of September 30, 2025, was $118,218,723, compared to $104,731,081 as of December 31, 2024, indicating an increase of approximately 12.9%[14]. - Total current liabilities as of September 30, 2025, were $14,725,256, compared to $13,096,541 as of December 31, 2024, reflecting an increase of approximately 12.4%[14]. - As of September 30, 2025, total accrued liabilities were $3,004,829, a decrease from $3,166,486 in December 31, 2024[88]. - Taxes payable as of September 30, 2025, totaled $7,631,151, including a one-time transition tax of $7.61 million related to foreign unremitted earnings[89]. Cash Flow and Liquidity - Cash balance as of September 30, 2025, was $131,877,059, a significant increase from $25,341 as of December 31, 2024[14]. - Cash flow from operating activities for the nine months ended September 30, 2025 was $64,443,002, a significant increase from a cash outflow of $330,673 in 2024[21]. - The company had a net cash increase of $131,851,718 for the nine months ended September 30, 2025, compared to $69,085,572 for the same period in 2024[21]. - The Company’s cash includes highly liquid investments with an original maturity of three months or less, ensuring liquidity[44]. - The Company expects to have sufficient cash to fund its operations for the next 12 months from the date of the financial statements issuance[33]. Investments and Contracts - The company made a prepayment of $67.2 million (RMB 476.0 million) to Hubei Bangyu for energy storage battery systems, which was reclaimed in March 2025 due to contract non-fulfillment[85]. - During the nine months ended September 30, 2025, the Company signed a contract worth RMB1.8 million (US$0.2 million) for operation and maintenance services, amortized over ten years[39]. - The Company completed a contract with Zhenran Limited for a smart cloud platform, totaling $800,000 (RMB 5,743,480)[84]. Shareholder Equity and Stock Issuance - The Company issued common stock worth $9,865,400 during the financing activities for the nine months ended September 30, 2025[21]. - The total shares of Common Stock authorized for issuance under the China Recycling Energy Corporation Omnibus Equity Plan is 124,626[111]. - The Company agreed to exchange a principal amount of $200,000 for 137,080 shares of Common Stock on October 9, 2025, and another $200,000 for 163,934 shares on October 24, 2025[135]. - The Company granted 290,000 restricted stocks to three engineering department employees, vesting after six months[137]. - The Company entered into securities purchase agreements for a private placement of 17,000,000 shares at a price of $1.18 per Unit, resulting in gross proceeds of $20,060,000[138]. Taxation and Deferred Tax Assets - The effective income tax rate for the company's Chinese subsidiaries was 25% for both 2024 and 2023, with no income tax provisions related to the Cayman Islands jurisdiction[116]. - The total income tax expense for the nine months ended September 30, 2025, was $39,437, compared to $14,168 for the same period in 2024[119]. - The Company reported a balance of deferred tax assets of $105,352 as of September 30, 2025, after accounting for cash received in advance and revenue recognition deductions[54]. - The US parent company had net operating loss (NOL) carryforwards of $9.05 million as of September 30, 2025, with a 100% deferred tax asset valuation allowance recorded due to ongoing operating losses[117]. - The company's PRC subsidiaries had $33.42 million in NOL that can be carried forward for five years, with a 100% deferred tax valuation allowance also recorded for this amount[118]. Operational Strategy and Market Focus - The company plans to pursue targeted expansion strategies into new market areas, focusing on energy storage technologies for high growth potential industries[25]. - The company is in the process of transforming into an energy storage integrated solution provider[33]. - The Company is actively seeking opportunities in energy storage technologies for high-growth potential industries, including large-scale photovoltaic and wind power stations[85]. Risk Management and Asset Performance - The Company did not record any impairment for long-lived assets for the three months ended September 30, 2025 and 2024, indicating stable asset performance[52]. - The Company has not experienced any losses in cash accounts maintained within China, with balances insured up to RMB500,000 ($71,792) per bank[49]. - The Company has not accrued any allowance against short-term loan receivables as of September 30, 2025, indicating confidence in collectability[48].