Smart Powerr Corp
For the period ended Jun 30, 2024. Filed Aug 14, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 14, 2024
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-Q
Period ended 2024-03-31; filed 2024-05-14.
0001213900-24-042702
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-08-14.
0001213900-24-068660
Item 2. 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 78 previous paragraphs and 87 current paragraphs.
66 unchanged; 11 reworded; 4 added; 1 removed; 0 previous and 6 current paragraphs rearranged.
Tables are not compared: 8 previous and 8 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 (4)
Current report
INCOME TAX EXPENSE. Income tax expense was $14,176 for the six months ended June 30, 2024, compared with $62,492 for the six months ended June 30, 2023. The consolidated effective income tax rate for the six months ended June 30, 2024 and 2023 were 2.1% and 22.7%, respectively.
Current report
OPERATING EXPENSES. Operating expenses consisted of general and administrative expenses (“G&A”) totaling $350,803 for the three months ended June 30, 2024, compared to $374,407 for the three months ended June 30, 2023, a decrease of $23,604 or 6.30%. The decrease in operating expenses was mainly due to decreased audit expense by approximately $73,410, decreased NASDAQ annual fee by $47,000, decreased Broadridge service fee by $9,784, decreased legal expense by approximately $8,975 and decreased other G&A expenses by $23,500, which was partly offset by increased stock compensation expense by approximately $139,066.
Current report
NET LOSS. Net loss for the three months ended June 30, 2024 was $409,757 compared to $247,842 for the three months ended June 30, 2023, an increase of net loss of $161,915. This increase in net loss was mainly due to decreased other income by $216,333, decreased interest income by $40,949, which was partly offset by decreased operating expenses by $23,604, decreased loss on note conversion by $4,880, decreased interest expense by $8,925, and decreased income tax expense by $57,958 as described above.
Current report
Comparison of Six Months Ended June 30, 2024 and 2023
Removed paragraphs (1)
Previous report
Comparison of Three Months Ended March 31, 2024 and 2023
Reworded paragraphs (11)
Previous wording
For the three months ended March 31, 2024 and 2023, the Company had a net loss of $279,797 and $89,504, respectively. The Company had an accumulated deficit of $60.78 million as of March 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.
Current wording
For the six months ended June 30, 2024 and 2023, the Company had net loss of $689,554 and $337,346, respectively. For the three months ended June 30, 2024 and 2023, the Company had a net loss of $409,757 and $247,842, respectively. The Company had an accumulated deficit of $61.19 million as of June 30, 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
OPERATING EXPENSES. Operating expenses consisted of general and administrative expenses (“G&A”) totaling $208,430 for the three months ended March 31, 2024, compared to $84,828 for the three months ended March 31, 2023, an increase of $123,602 or 145.7%. The increase in operating expenses was mainly due to increased audit expense by approximately $44,500, increased professional fee by approximately $15,700 and increased legal expense by approximately $22,000.
Current wording
OPERATING EXPENSES. Operating expenses consisted of general and administrative expenses (“G&A”) totaling $559,237 for the six months ended June 30, 2024, compared to $459,235 for the six months ended June 30, 2023, an increase of $100,002 or 21.78%. The increase in operating expenses was mainly due to increased stock compensation expense by approximately $139,066 and increased legal expense by approximately $13,025, which was partly offset by decreased audit expense by approximately $28,910.
Previous wording
NET LOSS. Net loss for the three months ended March 31, 2024 was $279,797 compared to $89,504 for the three months ended March 31, 2023, an increase of net loss of $190,293. This increase in net loss was mainly due to increased operating expenses by $123,602, increased loss on note conversion by $31,725 and decreased interest income by $48,211, which was partly offset by decreased interest expense by $7,024 and increased other income by $15,867 as described above.
Current wording
NET LOSS. Net loss for the six months ended June 30, 2024 was $689,554 compared to $337,346 for the six months ended June 30, 2023, an increase of net loss of $352,208. This increase in net loss was mainly due to increased operating expenses by $100,002, increased loss on note conversion by $26,845, decreased other income by $200,466 and decreased interest income by $89,160, which was partly offset by decreased interest expense by $15,949 and decreased income tax expense by $48,316 as described above.
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 three months ended March 31, 2024, net non-operating expense was $57,187 compared to non-operating expenses of $142 for the three months ended March 31, 2023. For the three months ended March 31, 2024, we had $39,984 interest income, and other income of $28,152, which was partly offset by $104,080 interest expense on note payable and loss on note conversion of $21,243. For the three months ended March 31, 2023, we had $88,195 interest income, gain on note conversion of $10,482 and other income of $12,285, which was partly offset by $111,104 interest expense on note payable.
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 three months ended June 30, 2024, net non-operating expenses was $58,954 compared to non-operating income of $184,523 for the three months ended June 30, 2023. For the three months ended June 30, 2024, we had $41,297 interest income, which was partly offset by $100,251 interest expense on note payable. For the three months ended June 30, 2023, we had $82,246 interest income, and other income of $216,333, which was partly offset by $109,176 interest expense on note payable, and loss on note conversion of $4,880.
Previous wording
INCOME TAX EXPENSE. Income tax expense was $14,180 for the three months ended March 31, 2024, compared with $4,534 for the three months ended March 31, 2023. The consolidated effective income tax rate for the three months ended March 31, 2024 and 2023 were 5.3% and 5.3%, respectively.
Current wording
INCOME TAX EXPENSE. Income tax expense was $nil for the three months ended June 30, 2024, compared with $57,958 for the three months ended June 30, 2023. The consolidated effective income tax rate for the three months ended June 30, 2024 and 2023 were nil and 30.5%, respectively.
Previous wording
As of March 31, 2024, the Company had cash and equivalents of $68.58 million, other current assets (excluding cash and equivalents) of $67.55 million, current liabilities of $23.66 million, working capital of $112.49 million, a current ratio of 5.75:1 and a liability-to-equity ratio of 0.25:1.
Current wording
As of June 30, 2024, the Company had cash and equivalents of $68.10 million, other current assets (excluding cash and equivalents) of $67.24 million, current liabilities of $23.81 million, working capital of $111.53 million, a current ratio of 5.68:1 and a liability-to-equity ratio of 0.25:1.
Previous wording
The following is a summary of cash provided by or used in each of the indicated types of activities during the three months ended March 31, 2024 and 2023:
Current wording
The following is a summary of cash provided by or used in each of the indicated types of activities during the six months ended June 30, 2024 and 2023:
Previous wording
Net cash used in operating activities was $183,519 during the three months ended March 31, 2024, compared to $70,283 for the three months ended March 31, 2023. The increase in net cash outflow for the three months ended March 31, 2024 was mainly due to increased net loss by $190,293, which partly offset by decreased cash outflow on advance to suppliers by $2,258, decreased cash outflow on other receivable by $15,374, decreased cash outflow on taxes payable by $21,853, decreased payment of lease liability by $1,150, and increased cash inflow on accrued liabilities and other payables by $36,522.
Current wording
Net cash used in operating activities was $248,132 during the six months ended June 30, 2024, compared to $69,042,292 for the six months ended June 30, 2023. The decrease in net cash outflow for the six months ended June 30, 2024 was mainly due to decreased cash outflow on advance to supplier by $68.9 million, and increased cash inflow on accrued liabilities and other payables by $136,247, which was partly offset by increased net loss by $352,208.
Previous wording
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 March 31, 2024, the Company made a prepayment to Bangyu of $67.1 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.
Current wording
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 June 30, 2024, the Company made a prepayment to Bangyu of $66.8 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 wording
Net cash provided by investing activities was $68,564,217 for the three months ended March 31, 2024, compare with net cash used in investing activities of $141,070,591 for the three months ended March 31, 2023, respectively. For the three months ended March 31, 2024, investing activities mainly consisted of repayment of short-term loan receivable of $68,564,217. For the three months ended March 31, 2023, investing activities mainly consisted of issuance of short-term loan receivable of $141,070,591.
Current wording
Net cash provided by investing activities was $68,542,364 for the six months ended June 30, 2024, compare with net cash used in investing activities of $69,994,412 for the six months ended June 30, 2023, respectively. For the six months ended June 30, 2024, investing activities mainly consisted of receipt of repayment of short-term loan receivable of $68,542,364. For the six months ended June 30, 2023, investing activities mainly consisted of short-term loan receivable of $69,994,412.
Previous wording
There was no cash provided by or use in financing activities during the three months ended March 31, 2024 and 2023.
Current wording
There was no cash provided by or use in financing activities during the six months ended June 30, 2024 and 2023.
Rearranged current paragraphs (6)
Current report — wording carried from elsewhere
Comparison of Results of Operations for the six months ended June 30, 2024 and 2023
Current report — wording carried from elsewhere
SALES. Total sales for the six months ended June 30, 2024 and 2023 were $0.
Current report — wording carried from elsewhere
*COST OF SALES.*Cost of sales (“COS”) for the six months ended June 30, 2024 and 2023 were $0.
Current report — wording carried from elsewhere
GROSS PROFIT. Gross profit for the six months ended June 30, 2024 and 2023 were nil with gross margin of nil.
Current report — wording carried from elsewhere
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 six months ended June 30, 2024, net non-operating expenses was $116,141 compared to non-operating income of $184,381 for six months ended June 30, 2023. For the six months ended June 30, 2024, we had $81,281 interest income, and $28,152 other income, which was partly offset by $21,243 loss on note conversion and $204,331 interest expense. For six months ended June 30, 2023, we had $170,441 interest income, gain on note conversion of $5,602 and other income of $228,618, which was partly offset by $220,280 interest expense on note payable.
Current report — wording carried from elsewhere
The following table sets forth the results of our operations for the periods indicated as a percentage of net sales. Certain columns may not add due to rounding.