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OTCMKTS: HCCC $0.68 0.0%
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Statements of Income
For the Three Months Ended March 31,
2019 2018
Revenue
Construction income 1,704,273 1,694,535
Related party 0 31,789
Total revenue 1,704,273 1,726,324
Cost of goods sold
Direct costs 1,196,438 1,209,413
Direct costs related party 0 31,617
Total cost of goods sold 1,196,438 1,241,030
Gross profit 507,835 485,294
Operating expenses
General and administrative expenses 607,052 555,184
Management fees related party 19,500 19,500
Total operating expenses 626,552 574,684
Loss from operations -118,717 -89,390
Other expenses
Interest expense 1,833 3,946
Interest expense related party 36,095 14,215
Change in fair value earn-out 4,396 0
(Gain) loss on fixed asset disposal -17,403 3,418
Total other expenses 24,921 21,579
Income tax provision 0 0
Net loss -143,638 -110,969
Other comprehensive income (loss), net
Foreign currency translation adjustment 18,612 -10,259
Comprehensive loss -125,026 -121,228
Loss per share
Basic -0.02 -0.02
Diluted -0.02 -0.02
Weighted average common shares outstanding
Basic 7,593,413 7,486,024
Diluted 7,593,413 7,486,024
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Cash Flows
March 31, 2019 (Unaudited) December 31, 2018 (Audited)
ASSETS
Current assets
Cash and cash equivalents 328,439 359,134
Accounts receivable 937,897 1,087,381
Prepaid expenses 18,772 16,282
Current right-of-use (ROU) asset 92,269 0
Costs and earnings in excess of billings 48,052 45,478
Total current assets 1,425,429 1,508,275
Property and equipment, net 494,491 476,436
Security deposits and other non-current assets 38,992 32,530
Deferred tax asset 50,000 50,000
Customer lists, net 78,524 83,645
ROU asset 167,985 0
Other long term asset 30,000 0
Goodwill 1,373,621 1,373,621
Total assets 3,659,042 3,524,507
LIABILITIES AND STOCKHOLDERS EQUITY
Current liabilities
Accounts payable and accrued expenses 695,997 891,354
Earn-out payable 195,132 190,736
Billings in excess of costs and earnings 41,881 195,331
Sales and withholding tax payable 54,071 59,857
Current equipment notes payable 32,052 38,991
Current operating lease liability 92,269 0
Current finance lease payable 72,510 65,265
Current convertible notes payable related party, net of discounts 257,659 0
Income tax payable 32,259 48,643
Total current liabilities 1,473,830 1,490,177
Noncurrent liabilities
Line of credit 172,715 28,359
Lease operating liability 167,985 0
Finance leases 306,163 232,876
Equipment notes payable 65,779 121,038
Convertible notes payable related party, net of discounts 61,609 29,122
Total noncurrent liabilities 774,251 411,395
Total liabilities 2,248,081 1,901,572
Commitments and contingencies
Stockholders equity
Preferred stock - $0.0001 par value; 5,000,000 shares authorized; 0 shares issued and outstanding 0 0
Common stock - $0.0001 par value; 25,000,000 shares authorized; 7,621,024 and 7,586,024 shares issued and outstanding as of March 31, 2019 and December 31, 2018, respectively 762 758
Additional paid-in capital 2,896,524 2,983,476
Accumulated deficit -1,429,402 -1,285,764
Accumulated other comprehensive loss -56,923 -75,535
Total stockholders equity 1,410,961 1,622,935
TOTAL LIABILITIES & STOCKHOLDERS EQUITY 3,659,042 3,524,507
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