Mon, Apr 14, 10:31 AM (13 days ago)
**Summary of Financial Performance:** - **Revenue:** Total revenue for the year ended December 31, 2024, was $2,424,659, compared to $6,693,844 for the same period in 2023. The decrease in revenue was primarily due to a decline in the NG business in China and a strategic shift toward higher-margin projects. - **Gross Profit:** Gross profit increased to $846,555 in 2024 from $460,835 in 2023, despite the decline in revenue. This growth was achieved through improved operational efficiencies and a stronger revenue mix from higher-margin segments. - **Net Loss:** The company reported a net loss of $4,416,319 for the year ended December 31, 2024, compared to a net loss of $5,782,666 for the same period in 2023. The reduction in net loss was primarily attributed to a shift in revenue mix, with a focus on higher-margin waste-to-energy business and a reduction in interest and financing fees. - **Operating Expenses:** Selling, General, and Administrative (SG&A) expenses increased to $797,518 in 2024 from $679,004 in 2023, due to expanded investments in marketing, media, and investor relations, as well as increased spending on subscription services and IT infrastructure. - **Cash Flow:** The company used $3,560,951 in net cash from operating activities for the year ended December 31, 2024, compared to $4,783,077 in 2023. The company raised $3,373,903 from financing activities in 2024, compared to $5,096,483 in 2023. **Strategic Overview:** - **Business Strategy:** The company's strategy focuses on expanding its Waste Heat Recovery product line, establishing a Waste to Energy business, and leveraging its engineering, procurement, and manufacturing experience to assist customers with turnkey energy solutions. - **Market Position:** The company aims to become a leading provider of renewable and energy efficiency products and solutions, targeting sustainable energy solutions that are profitable for both the company and its customers. - **Future Outlook:** The company plans to continue to invest in higher-margin renewable energy and waste-to-energy solutions to drive sustainable profitability and growth. **Risk Factors:** - **Financial Condition:** The company has an accumulated deficit and may incur additional losses, which may restrict its ability to obtain additional financing for working capital, capital expenditures, or other purposes. - **Market Position:** The company operates in a highly competitive market, and its ability to compete effectively against current or potential competitors could be adversely affected by various factors, including pricing pressures, technological changes, and regulatory requirements. - **Operational Risks:** The company faces various operational risks, including shortages of required components, dependence on key members of its management and development team, and the need to attract and retain a sufficient number of highly qualified personnel. **Financial Condition:** - **Liquidity:** The company's ability to meet its liquidity requirements in the future may be restricted by its PRC subsidiaries' ability to pay dividends or make other payments to the company. - **Capital Structure:** The company's capital structure includes a mix of debt and equity, with a significant amount of convertible securities that, if converted, would result in substantial dilution to its stockholders. **Market Position Changes:** - **Competitive Landscape:** The company competes with numerous companies in the waste heat recovery and waste-to-energy markets, and its ability to maintain or expand its market share may be affected by various factors, including pricing pressures, technological changes, and regulatory requirements. - **Regulatory Environment:** The company's operations are subject to various foreign, federal, state, and local regulatory requirements, and changes in these requirements could have a material adverse effect on its ability to conduct its business and could result in its cessation of active business operations.