Smart Powerr Corp
For the period ended Sep 30, 2024. Filed Nov 8, 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.
Sep 30, 2024 · Filed Nov 8, 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 2024-06-30; filed 2024-08-14.
0001213900-24-068660
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-08.
0001213900-24-095596
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 87 previous paragraphs and 85 current paragraphs.
65 unchanged; 19 reworded; 1 added; 3 removed; 0 previous and 0 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 (1)
Current report
Comparison of Nine Months Ended September 30, 2024 and 2023
Removed paragraphs (3)
Previous report
Comparison of Six Months Ended June 30, 2024 and 2023
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.
Reworded paragraphs (19)
Previous 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.
Current wording
For the nine months ended September 30, 2024 and 2023, the Company had net loss of $952,285 and $518,069, respectively. For the three months ended September 30, 2024 and 2023, the Company had a net loss of $262,731 and $180,723, respectively. The Company had an accumulated deficit of $61.45 million as of September 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
Comparison of Results of Operations for the six months ended June 30, 2024 and 2023
Current wording
Comparison of Results of Operations for the nine months ended September 30, 2024 and 2023
Previous wording
SALES. Total sales for the six months ended June 30, 2024 and 2023 were $0.
Current wording
SALES. Total sales for the nine months ended September 30, 2024 and 2023 were $0.
Previous wording
*COST OF SALES.*Cost of sales (“COS”) for the six months ended June 30, 2024 and 2023 were $0.
Current wording
*COST OF SALES.*Cost of sales (“COS”) for the nine months ended September 30, 2024 and 2023 were $0.
Previous wording
GROSS PROFIT. Gross profit for the six months ended June 30, 2024 and 2023 were nil with gross margin of nil.
Current wording
GROSS PROFIT. Gross profit for the nine months ended September 30, 2024 and 2023 were nil with gross margin of nil.
Previous 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.
Current wording
OPERATING EXPENSES. Operating expenses consisted of general and administrative expenses (“G&A”) totaling $747,540 for the nine months ended September 30, 2024, compared to $606,105 for the nine months ended September 30, 2023, an increase of $141,435 or 23.34%. The increase in operating expenses was mainly due to increased stock compensation expense by $139,066 and increased legal expense by $58,025, which was partly offset by decreased professional fee by $46,047.
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 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 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 nine months ended September 30, 2024, net non-operating expenses was $190,577 compared to non-operating income of $185,176 for the nine months ended September 30, 2023. For the nine months ended September 30, 2024, we had $108,497 interest income, and $28,015 other income, which was partly offset by $23,238 loss on note conversion and $303,851 interest expense. For the nine months ended September 30, 2023, we had $218,242 interest income, and other income of $296,549, which was offset by $328,200 interest expense on note payable and loss on note conversion of $1,415.
Previous wording
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 wording
INCOME TAX EXPENSE. Income tax expense was $14,168 for the nine months ended September 30, 2024, compared with $97,140 for the nine months ended September 30, 2023. The consolidated effective income tax rate for the nine months ended September 30, 2024 and 2023 were 1.5% and 23.1%, respectively.
Previous 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.
Current wording
NET LOSS. Net loss for the nine months ended September 30, 2024 was $952,285 compared to $518,069 for the nine months ended September 30, 2023, an increase of net loss of $434,216. This increase in net loss was mainly due to increased operating expenses by $141,435, increased loss on note conversion by $21,823, decreased other income by $268,534, and decreased interest income by $109,745, which was partly offset by decreased interest expense by $24,349 and decreased income tax expense by $82,972 as described above.
Previous wording
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 wording
OPERATING EXPENSES. Operating expenses consisted of general and administrative expenses (“G&A”) totaling $188,295 for the three months ended September 30, 2024, compared to $146,870 for the three months ended September 30, 2023, an increase of $41,425 or 28.21%. The increase in operating expenses was mainly due to increased legal expense by a$45,000 which was partly offset by decreased other G&A expenses by $3,575.
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 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.
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 September 30, 2024, net non-operating expenses was $74,436 compared to non-operating income of $795 for the three months ended September 30, 2023. For the three months ended September 30, 2024, we had $27,216 interest income, which was partly offset by $99,520 interest expense on note payable and $1,995 loss on note conversion. For the three months ended September 30, 2023, we had $47,801 interest income and other income of $67,931, but the amount was offset by $107,920 interest expense on note payable and loss on note conversion of $7,017.
Previous 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.
Current wording
INCOME TAX EXPENSE. Income tax expense was nil for the three months ended September 30, 2024, compared with $34,648 for the three months ended September 30, 2023. The consolidated effective income tax rate for the three months ended September 30, 2024 and 2023 were nil and 23.7%, respectively.
Previous wording
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 wording
NET LOSS. Net loss for the three months ended September 30, 2024 was $262,731 compared to $180,723 for the three months ended September 30, 2023, an increase of net loss of $82,008. This increase in net loss was mainly due to decreased other income by $68,068, decreased interest income by $20,585, and increased operating expenses by $41,425, which was partly offset by decreased loss on note conversion by $5,022, decreased interest expense by $8,400, and decreased income tax expense by $34,648 as described above.
Previous 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.
Current wording
As of September 30, 2024, the Company had cash and equivalents of $69.12 million, other current assets (excluding cash and equivalents) of $68.39 million, current liabilities of $24.00 million, working capital of $113.51 million, a current ratio of 5.73:1 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 six months ended June 30, 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 nine months ended September 30, 2024 and 2023:
Previous 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.
Current wording
Net cash used in operating activities was $330,673 during the nine months ended September 30, 2024, compared to $68,264,743 for the nine months ended September 30, 2023. The decrease in net cash outflow for the nine months ended September 30, 2024 was mainly due to noncash adjustment from net loss to net cash used in operating activities for stock compensation expense by $139,066, decreased cash outflow on advance to supplier by $68.06 million, and increased cash inflow on accrued liabilities and other payables by $167,479, which was partly offset by increased net loss by $434,216.
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 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.
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. In 2023, 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 $68,542,364 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.
Current wording
Net cash provided by investing activities was $68,502,372 for the nine months ended September 30, 2024, compare with net cash used in investing activities of nil for the nine months ended September 30, 2023, respectively. For the nine months ended September 30, 2024, investing activities mainly consisted of repayment received for short-term loan receivable of $68,502,372. For the nine months ended June 30, 2023, there was no cash provided by or used in investing activities.
Previous wording
There was no cash provided by or use in financing activities during the six months ended June 30, 2024 and 2023.
Current wording
There was no cash provided by or use in financing activities during the nine months ended September 30, 2024 and 2023.