Smart Powerr Corp.
For the period ended Dec 31, 2024. Filed Mar 28, 2025.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2024 · Filed Mar 28, 2025
CREG$0.77-46.0%Stored close · as of Jul 20, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-K
Period ended 2023-12-31; filed 2024-04-11.
0001213900-24-031988
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-K
Period ended 2024-12-31; filed 2025-03-28.
0001013762-25-003648
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 76 previous paragraphs and 77 current paragraphs.
62 unchanged; 9 reworded; 6 added; 5 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 7 previous and 7 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (6)
Current report
NET LOSS. Net loss for the year ended December 31, 2024 was $ 1,559,012 compared to $746,786 for the year ended December 31, 2023, an increase of net loss of $812,226. This increase in net loss was mainly due to increased operating expenses and impairment provision of advance to supplier, as discussed previously.
Current report
As of December 31, 2024, the Company had $ 55,660,131 (RMB 406.3 million) short term loan to Xi’an Yingtai Energy Conservation Technology Co., Ltd (“Xi’an Yingtai”), an unrelated party of the Company.
Current report
Going Concern
Current report
The Company’s financial statements are prepared assuming that the Company will continue as a going concern.
Current report
The Company incurred operating loss of $1.1 million, generated negative operating cash flows of $10.8 million, net loss $1.6 million for year ended December 31, 2024 and may continue to incur operating losses and generate negative operating cash flows as the Company implements its future business plan. At the end of 2024, the company had the balance of accumulated deficit $62.1 million and cash $25,341. The Company has collected back the loan receivable RMB405.8 million and advanced to supplier RMB 476 million, and raised funds through issuance of common stock in the first quarter of 2025.
Current report
The ability of the Company to continue as a going concern is dependent upon its ability to successfully execute its business strategy and eventually attain profitable operations. The accompanying financial statements do not include any adjustments that may be necessary if the Company is unable to continue as a going concern.
Removed paragraphs (5)
Previous report
NET LOSS. Net loss for the year ended December 31, 2023 was $746,786 compared to $4,457,327 for the year ended December 31, 2022, a decrease of net loss of $3,710,541. This decrease in net loss was mainly due to decreased operating expenses by $3,081,960, decreased other expenses by $456,298, decreased interest expense by $251,340 and decreased loss on note conversion by $127,812, which was partly offset by decreased interest income by $179,821 as described above.
Previous report
On June 19, 2023, the Company entered a purchase agreement with Hubei Bangyu New Energy Technology Co., Ltd. (“Bangyu”). The total contract amount was $82.3 million (RMB 595.0 million) for purchasing the energy storage battery systems. As of December 31, 2023, the Company made a prepayment to Bangyu of $65.9 million (RMB 476.0 million). The Company is in the process of transforming and expanding into energy storage integrated solution provider business. The Company actively seeks and explores opportunities to apply energy storage technologies to new industries or segments with high growth potential, including industrial and commercial complexes, large scale photovoltaic (PV) and wind power stations, remote islands without electricity, and smart energy cities with multi-energy supplies.
Previous report
On March 31, 2023, the Company had $140,576,568 (RMB 966.0 million) short term loan to Jinan Youkai Engineering Consulting Co., Ltd (“Youkai”), an unrelated party of the Company. The short-term loan was for five days with a capital utilization fee of $43,657 (RMB 300,000) per day for total of $218,287 (RMB 1.5 million). To ensure the safety of the funds, before money was transferred to Youkai, Youkai handed over the official seal, financial seal and bank account UK to the Company for custody and management until repayment of the loan. The Company received the repayment of $140.6 million in full plus capital utilization fee on April 3, 2023.
Previous report
On June 30, 2023, the Company loaned $67,120,596 (RMB 485.0 million) to Youkai again, an unrelated party of the Company. The short-term loan was for five days with a capital utilization fee of $13,839 (RMB 100,000) per day for total of $69,196 (RMB 500,000). To ensure the safety of the funds, before money was transferred to Youkai, Youkai handed over the official seal, financial seal and bank account UK to the Company for custody and management until repayment of the loan. The Company received the repayment of $67.2 million in full plus capital utilization fee on July 3, 2023.
Previous report
As of December 31, 2023, the Company had $68,730,851 (RMB 486.1 million) short term loan to Jinan Youkai Engineering Consulting Co., Ltd (“Youkai”), an unrelated party of the Company. The short-term loan was for five days with a capital utilization fee of $14,119 (RMB 100,000) per day for total of $70,595 (RMB 500,000). To ensure the safety of the funds, before money was transferred to Youkai, Youkai handed over the official seal, financial seal and bank account UK to the Company for custody and management until repayment of the loan. The Company received the repayment of $68.7 million in full plus capital utilization fee in January 2024.
Reworded paragraphs (9)
Previous wording
For the years ended December 31, 2023 and 2022, the Company had a net loss of $746,786 and $4,457,327, respectively. The Company had an accumulated deficit of $60.50 million as of December 31, 2023. The Company disposed all of its systems and currently holds five power generating systems through Erdos TCH, the five power generating systems are currently not producing any electricity. The Company is in the process of transforming and expanding into an energy storage integrated solution provider business. The Company plans to pursue disciplined and targeted expansion strategies for market areas the Company currently does not serve. The Company actively seeks and explores opportunities to apply energy storage technologies to new industries or segments with high growth potential, including industrial and commercial complexes, large scale photovoltaic (PV) and wind power stations, remote islands without electricity, and smart energy cities with multi-energy supplies. The Company’s cash flow forecast indicates it will have sufficient cash to fund its operations for the next 12 months from the date of issuance of these CFS.
Current wording
For the years ended December 31, 2024 and 2023, the Company had a net loss of $ 1,559,012 and $746,786, respectively. The Company had an accumulated deficit of $62,056,383 as of December 31, 2024. The Company disposed all of its systems and currently holds five power generating systems through Erdos TCH, the five power generating systems are currently not producing any electricity. The Company is in the process of transforming and expanding into an energy storage integrated solution provider business. The Company plans to pursue disciplined and targeted expansion strategies for market areas the Company currently does not serve. The Company actively seeks and explores opportunities to apply energy storage technologies to new industries or segments with high growth potential, including industrial and commercial complexes, large scale photovoltaic (PV) and wind power stations, remote islands without electricity, and smart energy cities with multi-energy supplies. The Company’s cash flow forecast indicates it will have sufficient cash to fund its operations for the next 12 months from the date of issuance of these CFS.
Previous wording
Management also intends to raise additional funds by way of a private or public offering, or by obtaining loans from banks or others. While the Company believes in the viability of its strategy to generate sufficient revenue and in its ability to raise additional funds on reasonable terms and conditions, there can be no assurances to that effect. The ability of the Company to continue as a going concern depends upon the Company’s ability to further implement its business plan and generate sufficient revenue and its ability to raise additional funds by way of a public or private offering, or debt financing including bank loans.
Current wording
The ability of the Company to continue as a going concern depends upon the Company’s ability to further implement its business plan and generate sufficient revenue and its ability to raise additional funds by way of a public or private offering, or debt financing including bank loans.
Previous wording
OPERATING EXPENSES. Operating expenses consisted of general and administrative expenses (“G&A”) totaling $798,473 for the year ended December 31, 2023, compared to $3,880,433 for the year ended December 31, 2022, a decrease of $3,081,960 or 79.4%. The decrease in operating expenses was mainly due to decreased R&D expense by $850,000 and decreased litigation expense by $2,281,277, which was partly offset by increased professional service expenses by $45,806.
Current wording
OPERATING EXPENSES. Operating expenses consisted of general and administrative expenses (“G&A”) totaling $1,093,468 for the year ended December 31, 2024, compared to $798,473 for the year ended December 31, 2023, an increase of $294,995 or 36.9%. It was mainly attributable to the increase of stock compensation in $139,066 and legal service fees in $133,025, partially offset by the decrease of service expenses in $34,896.
Previous wording
NET NON-OPERATING INCOME (EXPENSES). Net non-operating expenses consisted of gain or loss on note conversion, interest income, interest expenses, and miscellaneous expenses. For the year ended December 31, 2023, net non-operating income was $148,387 compared to non-operating expenses of $507,242 for the year ended December 31, 2022. For the year ended December 31, 2023, we had $251,668 interest income, and other income of $339,251, which was offset by $435,241 interest expense on note payable and loss on note conversion of $7,291. For the year ended December 31, 2022, we had $431,489 interest income which was offset by $686,581 interest expense on note payable, loss on note conversion of $135,103, and other expenses of $117,047.
Current wording
NET NON-OPERATING INCOME (EXPENSES). Net non-operating expenses consisted of gain or loss on note conversion, interest income, interest expenses, and miscellaneous expenses. For the year ended December 31, 2024, net non-operating expenses was $451,547 compared to non-operating income of $148,387 for the year ended December 31, 2023, mainly due to the bad debt provision in $200,000 for the prepayment made in fiscal 2024 for the market and project service.
Previous wording
INCOME TAX EXPENSE. Income tax expense was $96,700 for the year ended December 31, 2023, compared with $69,652 for the year ended December 31, 2022. The consolidated effective income tax rate for the year ended December 31, 2023 and 2022 were 14.9% and 1.6%, respectively.
Current wording
INCOME TAX EXPENSE. Income tax expense was $13,997 for the year ended December 31, 2024, compared with income tax expense $96,700 for the year ended December 31, 2023. The consolidated effective income tax rate for the year ended December 31, 2024 and 2023 were 0% and 1.6%, respectively. In 2024，Management believes the realization of benefits from these losses uncertain due to the US parent company’s continuing operating losses. Accordingly, a 100% deferred tax asset valuation allowance was provided.
Previous wording
As of December 31, 2023, the Company had cash and equivalents of $32,370, other current assets (excluding cash and equivalents) of $136.43 million, current liabilities of $23.87 million, working capital of $112.59 million, a current ratio of 5.72:1 and a liability-to-equity ratio of 0.25:1.
Current wording
As of December 31, 2024, the Company had cash and equivalents of $25,341, other current assets (excluding cash and equivalents) of $121.09 million, current liabilities of $13.10 million, working capital of $108.02 million, a current ratio of 9.25:1 and a liability-to-equity ratio of 0.16:1.
Previous wording
Net cash used in operating activities was $68,099,899 during the year ended December 31, 2023, compared to $351,880 for the year ended December 31, 2022. The increase in net cash outflow for the year ended December 31, 2023 was mainly due to increased cash outflow on advance to suppliers by $68.61 million, which was partly offset by decreased net loss and noncash adjustment to net loss totaling $3.19 million, and decreased cash inflow on accrued liabilities and other payables by $2.31 million.
Current wording
Net cash used in operating activities was $10,764,096 during the year ended December 31, 2024, compared to $68,099,899 for the year ended December 31, 2023. The decrease in net cash outflow for the year ended December 31, 2024 was mainly due to cash outflow on payment of Entrusted loan payable by $10.5 million.
Previous wording
Net cash used in investing activities was $69,124,086 and $0, respectively, for the years ended December 31, 2023 and 2022. For the year ended December 31, 2023, investing activities mainly consisted of short-term loan receivable of $69,124,086.
Current wording
Net cash used in investing activities was $11,031,196 and $(69,124,086), respectively for the years ended December 31, 2024 and 2023. For the year ended December 31, 2024. The cash inflow of investing activities mainly due to the short-term loan collection of RMB 486.1 million ($66,69 million), offsetting by new short-term loan receivable of $55.6 million.
Previous wording
The Company believes it has sufficient cash as of December 31, 2023, and a sufficient channel to commercial institutions to obtain any loans that may be necessary to meet its working capital needs. Historically, we have been able to obtain loans or otherwise achieve our financing objectives due to the Chinese government’s support for energy-saving businesses with stable cash inflows, good credit ratings and history.
Current wording
The Company believes it has sufficient cash as of December 31, 2024, and a sufficient channel to commercial institutions to obtain any loans that may be necessary to meet its working capital needs. Historically, we have been able to obtain loans or otherwise achieve our financing objectives due to the Chinese government’s support for energy-saving businesses with stable cash inflows, good credit ratings and history. In November 2024, we paid a the Entrusted loan principal of $10,548,957 (RMB77 million), with interest still outstanding.