EuroSite Power : Q2 2022 Summary Financial Statements

June 30,

December 31,

2022

2021

ASSETS

Current assets:

Cash and cash equivalents

$

2,163,685

$

2,039,265

Accounts receivable

473,130

399,446

Value added and other tax receivable

-

UK energy tax incentives receivable

-

Inventory

222,920

203,317

Other current assets

133,550

257,342

Total current assets

2,993,285

2,899,371

Property and equipment, net

8,117,655

8,470,989

Other assets, long-term

600,075

664,772

TOTAL ASSETS

$

11,711,015

$

12,035,131

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable

$

104,434

$

182,351

Accrued expenses and other current liabilities

258,625

202,768

Value added and other tax payable

72,805

63,359

Note payable - bank, short-term

399,686

500,832

Total current liabilities

835,550

949,310

Long-term liabilities:

Note payable - bank

1,269,276

1,334,942

Note payable - related party

-

Total liabilities

2,104,826

2,284,252

Stockholders' equity:

Common Stock, $0.001 par value; 100,000,000 shares authorized;

82,263,525 issued at June 30, 2022 and December 31, 2021

82,264

82,264

Additional paid-in capital

22,895,266

22,895,266

Capital contributions

Accumulated deficit

(13,193,564)

(13,179,332)

Cumulative translation adjustment (CTA)

(177,776)

(47,319)

Total stockholders' equity

9,606,189

9,750,879

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

11,711,014

$

12,035,131

Principal Offices:

EuroSite Power Limited Registered Office:

EuroSite Power Holdings Limited Registered Office:

Sky View,

Sky View,

Themistokli Dervi, 3

Argosy Road, East Midlands Airport,

Argosy Road, East Midlands Airport,

Julia House

Castle Donnington, Derby

Castle Donnington, Derby

1066 Nicosia, CYPRUS

DE74 2SA

DE74 2SA

Registered in Cyprus Number: HE379271

UNITED KINGDOM

UNITED KINGDOM

EuroSite Power Inc. Registered Office:

+44 (0)844 693 2848

Registered in England Number: 07379560

Corporation Trust Center, 1209 Orange Street,

info@eurositepower.co.uk

Wilmington, DE 19801 United States of America

Three Months Ended

June

June

2022

2021

Revenues

Energy revenues

$

1,289,417

$

1,111,329

Turnkey and other revenues

23,275

12,205

1,312,692

1,123,535

Cost of sales

Fuel, maintenance and installation

722,171

581,999

Site impairments

-

-

Site Depreciation expense

178,201

204,748

900,372

786,747

Gross profit

412,320

336,788

Operating expenses

45.0%

48.2%

General and administrative

178,858

150,529

Selling

122,526

47,661

Engineering

121,867

98,027

423,251

296,217

Gain / (Loss) from operations

(10,931)

40,571

Other income (expense)

Interest income

Interest expense, net of debt premium amortization

(26,285)

(33,786)

Debt conversion expense

(26,285)

(33,786)

Gain / (Loss) before income taxes

(37,216)

6,785

Benefit for income taxes

-

128,816

Net Gain / (loss)

$

(37,216)

$

135,601

Net gain /(loss) per share - basic and diluted

$

(0.0005)

$

0.002

Weighted-average shares outstanding - basic and diluted

82,263,525

82,263,525

Non-GAAP financial disclosure

Gain / (Loss) from operations

$

(10,931)

$

40,571

Total Depreciation expense

170,901

206,010

Site Impairments

-

-

Aborted acquisition costs

-

-

Stock based compensation

-

12,000

Adjusted EBITDA

$

159,970

$

258,581

Six Months Ended

June

June

2022

2021

Revenues

Energy revenues

$

2,866,718

$

1,940,527

Turnkey and other revenues

34,312

15,996

2,901,030

1,956,523

Cost of sales

Fuel, maintenance and installation

1,630,062

1,004,454

Site impairments

-

-

Site Depreciation expense

368,345

402,710

1,998,407

1,407,165

Gross profit

902,623

549,358

Operating expenses

General and administrative

374,092

312,494

Selling

202,581

84,303

Engineering

262,846

188,616

839,519

585,413

Gain / (loss) from operations

63,104

(36,055)

Other income (expense)

Interest income

Interest expense, net of debt premium amortization

(54,204)

(62,128)

Debt conversion expense

(54,204)

(62,128)

Gain/ (loss) before income taxes

8,900

(98,183)

(Provision) / Benefit for income taxes

(23,133)

128,816

Net Gain / (loss)

$

(14,232)

$

30,633

Net Gain / (loss) per share - basic and diluted

$

(0.0002)

$

0.0004

Weighted-average shares outstanding - basic and diluted

82,263,525

82,263,525

Non-GAAP financial disclosure

Gain / (loss) from operations

$

63,104

$

(36,055)

Total Depreciation expense

361,329

405,436

Site Impairments

-

-

Aborted acquisition costs

-

-

Stock based compensation

-

12,000

Adjusted EBITDA

$

424,433

$

381,381

Six Months Ended

June

June

2021

2021

CASH FLOWS FROM OPERATING ACTIVITIES:

Net Gain / (Loss)

$

(14,232)

$

30,633

Adjustments to reconcile net loss to net cash used in operating activities:

Non cash debt conversion expense

Depreciation

361,329

405,436

Stock-based compensation

-

12,000

Changes in operating assets and liabilities

(Increase) decrease in:

Accounts receivable

(73,684)

5,507

Value added and other tax receivable

9,446

17,067

Accrued UK energy tax incentives

-

(139,480)

Inventory

(19,602)

19,057

Prepaid and other current assets

123,792

35,355

Other assets, long term

64,697

-

Increase (decrease) in:

Accounts payable

(77,918)

(175,152)

Due to related party

-

-

Accrued expenses and other current liabilities

55,857

7,988

Capital Contributions to Joint Venture / Associate

-

21,617

Net cash used in operating activities

429,684

240,027

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchases of property and equipment

(7,995)

(190,175)

Net cash used in investing activities

(7,995)

(190,175)

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from sale of Common Stock net of costs

Payments on note payable

(382,137)

(202,268)

Proceeds from loan payable - bank

215,326

347,327

Net cash provided by (used in) financing activities

(166,812)

145,059

Effect of Exchange Rate on Cash and Cash Equivalents

(130,458)

(24,542)

Net increase (decrease) in cash and cash equivalents

124,420

170,370

Cash and cash equivalents, beginning of the period

2,039,265

1,924,988

Cash and cash equivalents, end of the period

$

2,163,685

$

2,095,358

Called up

Capital contribution

Profit and loss

Cumulative Translation

share capital

reserve

account

Adjustment (CTA)

Total equity

$

$

$

$

$

At 31 December 2021

82,264

22,895,266

(13,179,332)

(47,319)

9,750,879

Gain / (Loss) for the year to date

-

-

(14,232)

-

(14,232)

Stock based compensation

-

-

-

-

Movement in CTA

-

-

-

(130,456)

(130,456)

At 30 June 2022

82,264

22,895,266

(13,193,564)

(177,775)

9,606,189