Exhibit 99.1
HEBRON TECHNOLOGY CO., LIMITED
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
June 30, | December 31, | |||||||
2017 | 2016 | |||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash | $ | 3,610,585 | $ | 11,875,893 | ||||
Contracts receivable, net | 13,293,350 | 12,928,033 | ||||||
Accounts receivable, net | 265,002 | 187,852 | ||||||
Notes receivable | 14,611 | 277,745 | ||||||
Retainage receivables, net | 2,552,813 | 2,425,500 | ||||||
Inventories | 3,775,477 | 2,249,623 | ||||||
Prepayments and advances to suppliers, net | 9,024,485 | 4,537,823 | ||||||
Other receivables, net | 618,977 | 96,602 | ||||||
TOTAL CURRENT ASSETS | 33,155,300 | 34,579,071 | ||||||
Property and equipment at cost, net of accumulated depreciation | 13,153,805 | 11,186,013 | ||||||
Land use right, net of accumulated amortization | 1,070,006 | 1,071,310 | ||||||
Deferred tax assets | 207,687 | 242,963 | ||||||
TOTAL ASSETS | $ | 47,586,798 | $ | 47,079,357 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
CURRENT LIABILITIES: | ||||||||
Short-term loans | $ | 250,760 | $ | 287,986 | ||||
Accounts payable | 1,221,616 | 1,185,215 | ||||||
Accrued expenses and other current liabilities | 886,930 | 1,009,878 | ||||||
Advances from customers | 2,997,590 | 3,060,962 | ||||||
Deferred revenue | 877,095 | 1,042,511 | ||||||
Taxes payable | 9,353,299 | 8,744,563 | ||||||
Due to related parties | - | 68,397 | ||||||
TOTAL CURRENT LIABILITIES | 15,587,290 | 15,399,512 | ||||||
Long-term loans | 395,315 | 532,775 | ||||||
TOTAL LIABILITIES | 15,982,605 | 15,932,287 | ||||||
COMMITMENTS AND CONTINGENCIES | ||||||||
SHAREHOLDERS' EQUITY: | ||||||||
Common stock, $0.001 par value, 50,000,000 shares authorized, 14,695,347 and 14,695,347 shares issued and outstanding as of June 30, 2017 and December 31, 2016, respectively | 14,695 | 14,695 | ||||||
Additional paid-in capital | 10,237,965 | 10,237,965 | ||||||
Retained earnings | 22,397,770 | 22,741,104 | ||||||
Accumulated other comprehensive loss | (1,046,237 | ) | (1,846,694 | ) | ||||
TOTAL SHAREHOLDERS' EQUITY | 31,604,193 | 31,147,070 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 47,586,798 | $ | 47,079,357 |
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
HEBRON TECHNOLOGY CO., LIMITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Unaudited)
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For The Six Months Ended June 30, | ||||||||
2017 | 2016 | |||||||
REVENUE | ||||||||
Installation service | $ | 6,352,092 | $ | 9,820,436 | ||||
Fluid equipment sales | 1,391,348 | 922,697 | ||||||
7,743,440 | 10,743,133 | |||||||
COST OF REVENUE | ||||||||
Cost of product and services | 4,769,712 | 6,482,331 | ||||||
Business and sales related taxes | 103,923 | 153,099 | ||||||
GROSS PROFIT | 2,869,805 | 4,107,703 | ||||||
OPERATING EXPENSES | ||||||||
General and administrative expenses | 1,469,722 | 466,192 | ||||||
Selling expenses | 749,522 | 719,230 | ||||||
Research and development expenses | 485,335 | 22,440 | ||||||
Total operating expenses | 2,704,579 | 1,207,862 | ||||||
INCOME FROM OPERATIONS | 165,226 | 2,899,841 | ||||||
OTHER INCOME (EXPENSE) | ||||||||
Other income, net | 2,256 | 283 | ||||||
Interest expense | (23,518 | ) | (12,114 | ) | ||||
Total other expense, net | (21,262 | ) | (11,831 | ) | ||||
INCOME BEFORE INCOME TAXES | 143,964 | 2,888,010 | ||||||
PROVISION FOR INCOME TAXES | 487,298 | 744,118 | ||||||
NET INCOME (LOSS) | $ | (343,334 | ) | $ | 2,143,892 | |||
OTHER COMPREHENSIVE INCOME (LOSS) | ||||||||
Foreign currency translation gain (loss) | 800,457 | (437,776 | ) | |||||
COMPREHENSIVE INCOME | $ | 457,123 | $ | 1,706,116 | ||||
Basic and diluted earnings per common share | ||||||||
Basic | $ | (0.02 | ) | $ | 0.18 | |||
Diluted | $ | (0.02 | ) | $ | 0.18 | |||
Weighted average number of shares outstanding | ||||||||
Basic | 14,695,347 | 12,000,000 | ||||||
Diluted | 14,695,347 | 12,000,000 |