Smart Powerr Corp. (formerly China Recycling Energy Corporation) reported its financial results for the nine months ended September 30, 2024, revealing a net loss of $952,285, a significant increase from the $518,069 loss recorded in the same period of 2023. The company’s operating expenses rose to $747,540, up 23.34% from $606,105 in the prior year, primarily due to increased stock compensation and legal expenses. For the third quarter alone, the net loss was $262,731, compared to $180,723 in Q3 2023.
The company did not generate any revenue during the nine months ended September 30, 2024, maintaining a gross profit of nil. This lack of revenue is consistent with the previous fiscal period, as Smart Powerr has not sold any new power generating projects. The total liabilities increased slightly to $27,416,730 from $27,223,879 at the end of 2023, while total assets rose to $137,654,603 from $136,469,546, reflecting a modest growth in the company's financial position.
Cash reserves saw a substantial increase, with cash on hand reaching $69,117,942 as of September 30, 2024, compared to just $32,370 at the end of 2023. This increase was attributed to a net cash provided by investing activities of $68,502,372, primarily from the repayment of a short-term loan. The company reported a current ratio of 5.73:1, indicating a strong liquidity position.
Strategically, Smart Powerr is transitioning to become an energy storage integrated solution provider, targeting high-growth sectors such as industrial complexes and renewable energy stations. The company has made significant prepayments for energy storage battery systems, totaling $68.17 million, as part of a purchase agreement with Hubei Bangyu New Energy Technology Co., Ltd. for $82.3 million.
The company continues to face legal challenges, accruing $2.10 million in litigation expenses related to ongoing proceedings, including a significant out-of-court settlement of approximately $37.58 million. Despite these challenges, management believes they have sufficient cash and access to loans to meet operational needs for the next 12 months.
Overall, Smart Powerr Corp. is navigating a challenging financial landscape while pursuing a strategic shift towards energy storage solutions, with a focus on expanding into new market areas.
About Smart Powerr Corp.
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