Powerbridge Technologies Reports Financial Results and Business Update for the Six Months Ended June 30, 2020
Revenue Increased by
ZHUHAI, CHINA / ACCESSWIRE / December 3, 2020 / Powerbridge Technologies Co., Ltd. ("Powerbridge" or the "Company") (NASDAQ:PBTS), a global trade software applications and technology services provider, today announced its unaudited financial results for the six months ended June 30, 2020.
Key Financial Highlights for the First Half of 2020 as compared to the First Half of 2019
- Revenues increased by
12.9% to$14.5 million for the six months ended June 30, 2020 from$12.8 million in the same period of 2019. - Gross profit increased by
26.2% to$5.7 million for the six months ended June 30, 2020 from$4.5 million in the same period of 2019. - Net loss decreased by
93.5% to$0.2 million for the six months ended June 30, 2020 from$2.9 million in the same period of 2019.
Stewart Lor, Co-Chairman, President and Co-Chief Executive Officer of Powerbridge, commented, "We are pleased with our results for the first half of 2020 as our revenue increased
Mr. Lor, continued, "We are grateful for the shared enthusiasm our investors have for our existing trade solutions business and opportunities in out-of-home digital display advertising and media business. We look forward to engaging this new business with partners and accelerating our revenue growth. We plan to utilize our Big Data platform to drive our media business, supported by our capabilities in data collection, data analytics and data display. We look forward to increasing our awareness and communications with shareholders as we seek to build long term shareholder value."
Expansion Into Out of Home Advertising and Media
As previously announced in September 2020, the Company plans to build a network of digital displays such as LCD screens and operate an advertisement platform in Shenzhen initially, and then expand to the Greater Bay Area of China. The Company believes that there is a substantial market opportunity to operate an out-of-home digital display advertising and media technology platform in the Greater Bay Area of China. The Company will focus on display advertising in various high traffic advertising locations such as residential and office buildings, commercial parking garages, and elevators in residential and office buildings.
The Company closed on a
Powerbridge plans to manage a network of 30,000 digital displays such as LCD screens and operate an advertisement platform in Guangdong province, China. The Company is partnered with Kezhi, an advertising company in Shenzhen to install and provide maintenance for the screens in its certain central area in Shenzhen, Guangdong while Powerbridge will operate the system by using the Company's Big Data platform.
Financial Results for the six months ended June 30, 2020 and 2019
Revenue for the six months ended June 30, 2020 was
Revenue from application development service increased by
Revenue from consulting and technical support services increased by
Revenue from subscription services decreased by
Gross profit for the six months ended June 30, 2020 was
Operating expenses for the six months ended June 30, 2020 was
Other income (expense) for the six months ended June 30, 2020 was an income of
Operating loss for the six months ended June 30, 2020 was
Provison for income tax (income tax benefits) was
Net loss for the six months ended June 30, 2020 was
About Powerbridge Technologies Co., Ltd.
Powerbridge Technologies Co., Ltd. (NASDAQ:PBTS) is a provider of software applications and technology solutions and services to corporate and government customers primarily located in China. Founded in 1997, Powerbridge pioneered global trade software applications with a vision to make global trade operations easier for customers. Since inception, Powerbridge has continued to innovate and deliver solutions and services to address the changing needs of thousands of customers. Powerbridge's mission is to make global trade easier by empowering all players in the ecosystem. For more information, visit www.powerbridge.com/en
Forward-Looking Statements
No statement made in this press release should be interpreted as an offer to purchase or sell any security. Such an offer can only be made in accordance with the Securities Act of 1933, as amended, and applicable state securities laws. Certain statements in this press release concerning our future growth prospects are forward-looking statements regarding our future business expectations intended to qualify for the "safe harbor" under the Private Securities Litigation Reform Act of 1995, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding our ability to raise capital on any particular terms, fluctuations in earnings, fluctuations in foreign exchange rates, our ability to manage growth, our ability to realize revenue from expanded operation and acquired assets in China and the U.S., our ability to attract and retain highly skilled professionals, client concentration, industry segment concentration, reduced demand for technology in our key focus areas, our ability to successfully complete and integrate potential acquisitions, and unauthorized use of our intellectual property and general economic conditions affecting our industry. Additional risks that could affect our future operating results are more fully described in our Form 20-F and other filings that we may make with the United States Securities and Exchange Commission in the future. These filings are available at www.sec.gov. Powerbridge may, from time to time, make additional written and oral forward-looking statements, including statements contained in the Company's filings with the Securities and Exchange Commission and our reports to shareholders. In addition, please note that any forward-looking statements contained herein are based on assumptions that we believe to be reasonable as of the date of this press release. The Company does not undertake to update any forward-looking statements that may be made from time to time by or on behalf of the Company unless it is required by law.
UNAUDITED CONDENSED CONSOLIDATED FINANCIAL DATA
Summary of Unaudited Condensed Consolidated Balance Sheets
(In USD)
June 30, | December 31, | |||||||
2020 | 2019 | |||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash | $ | 2,155,536 | $ | 5,699,106 | ||||
Restricted cash | 169,849 | 172,369 | ||||||
Notes receivable | 70,770 | 215,462 | ||||||
Accounts receivable, net | 19,974,432 | 11,421,195 | ||||||
Prepaid expense - related parties | 621,842 | 806,311 | ||||||
Amount due from related parties | 1,148,474 | 370,000 | ||||||
Loans to third parties | 493,170 | 740,000 | ||||||
Contract costs | 2,955,556 | 2,999,411 | ||||||
Prepayments, deposits and other current assets, net | 1,986,551 | 623,962 | ||||||
Total Current Assets | 29,576,180 | 23,047,816 | ||||||
Property and equipment, net | 6,196,918 | 6,564,640 | ||||||
Prepayments, deposits and other assets | 551,563 | 759,397 | ||||||
Deferred tax assets | 304,592 | 309,111 | ||||||
Total Assets | $ | 36,629,253 | $ | 30,680,964 | ||||
LIABILITIES AND EQUITY | ||||||||
CURRENT LIABILITIES: | ||||||||
Bank loans | $ | 4,670,814 | $ | 1,580,018 | ||||
Accounts payable | 23,027,682 | 19,773,556 | ||||||
Customer deposits | 173,335 | 136,763 | ||||||
Deferred revenue | 885,396 | 1,183,545 | ||||||
Salaries and benefits payable | 818,750 | 1,219,584 | ||||||
Due to related party | 7,980 | 6,538 | ||||||
Taxes payable | 769,675 | 869,913 | ||||||
Total Current Liabilities | 30,353,632 | 24,769,917 | ||||||
Total Liabilities | $ | 30,353,632 | $ | 24,769,917 | ||||
COMMITMENTS AND CONTINGENCIES | ||||||||
EQUITY: | ||||||||
Ordinary Shares, 0.00166667 par value; 300,000,000 shares authorized; 9,175,288 and 8,967,748 shares issued and outstanding as of June 30, 2020 and December 31, 2019 | 15,292 | 14,946 | ||||||
Additional Paid-in Capital | 16,538,546 | 15,878,438 | ||||||
Accumulated deficit | (10,151,919 | ) | (9,980,835 | ) | ||||
Accumulated other comprehensive loss | (109,180 | ) | (1,487 | ) | ||||
Total Powerbridge Technologies Co., Ltd.'s Shareholders' Equity | 6,292,739 | 5,911,062 | ||||||
Non-controlling interest | (17,118 | ) | (15 | ) | ||||
Total Equity | 6,275,621 | 5,911,047 | ||||||
Total Liabilities and Equity | $ | 36,629,253 | $ | 30,680,964 | ||||
Summary of Unaudited Condensed Consolidated Statements of
Operations and comprehensive Loss
(In USD)
For the Six Months Ended | ||||||||
June 30, | ||||||||
2020 | 2019 | |||||||
REVENUES: | ||||||||
Application development services | $ | 12,400,920 | $ | 10,959,922 | ||||
Consulting and technical support services | 1,573,411 | 1,265,239 | ||||||
Subscription services | 476,251 | 574,034 | ||||||
Total revenues | 14,450,582 | 12,799,195 | ||||||
COST OF REVENUES: | ||||||||
Cost of application development services | 7,964,772 | 7,764,376 | ||||||
Cost of consulting and technical support services | 751,308 | 486,379 | ||||||
Cost of subscription services | 47,746 | 42,333 | ||||||
Total cost of revenues | 8,763,826 | 8,293,088 | ||||||
GROSS PROFIT | 5,686,756 | 4,506,107 | ||||||
Operating expenses: | ||||||||
Sales and marketing | 1,066,099 | 1,337,346 | ||||||
General and administrative | 2,647,570 | 2,409,836 | ||||||
Research and development | 1,557,746 | 1,309,824 | ||||||
Stock based compensation | 660,454 | 1,821,131 | ||||||
Total operating expenses | 5,931,869 | 6,878,137 | ||||||
LOSS FROM OPERATIONS | (245,113 | ) | (2,372,030 | ) | ||||
OTHER EXPENSE (INCOME) | ||||||||
Financing and interest expenses | 114,443 | 643,840 | ||||||
Other income | (172,851 | ) | (41,305 | ) | ||||
Other expense | 1,423 | 529 | ||||||
Total other expense (income), net | (56,985 | ) | 603,064 | |||||
LOSS BEFORE INCOME TAXES | (188,128 | ) | (2,975,094 | ) | ||||
PROVISION FOR INCOME TAXES (INCOME TAX BENEFITS) | 224 | (90,044 | ) | |||||
NET LOSS | (188,352 | ) | (2,885,050 | ) | ||||
Less: loss attributable to non-controlling interests | (17,268 | ) | - | |||||
NET LOSS ATTRIBUTABLE TO POWERBRIDGE | (171,084 | ) | (2,885,050 | ) | ||||
OTHER COMPREHENSIVE LOSS | ||||||||
Foreign currency translation adjustment | (107,612 | ) | 35,189 | |||||
COMPREHENSIVE LOSS | (295,964 | ) | (2,849,861 | ) | ||||
Less: Comprehensive loss attributable to non-controlling interest | (17,187 | ) | - | |||||
COMPREHENSIVE LOSS ATTRIBUTABLE TO POWERBRIDGE | $ | (278,777 | ) | $ | (2,849,861 | ) | ||
WEIGHTED AVERAGE NUMBER OF ORDINARY SHARES | ||||||||
Basic and diluted | 9,089,574 | 7,825,456 | ||||||
LOSSES PER SHARE | ||||||||
Basic and diluted | $ | (0.02 | ) | $ | (0.37 | ) | ||
For more information, please contact:
Corporate:
Powerbridge Technologies Co., Ltd.
Stewart Lor
Co-Chairman, Co-Chief Executive Officer, President, and Chief Financial Officer
Email: stewartlor@powerbridge.com
Investor Relations:
ClearThink Capital
Stephen Hart
Phone: 917-658-7878
Email: nyc@clearthink.capital
SOURCE: Powerbridge Technologies Co., Ltd.
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