Executive Summary

Q4 2019 capped a transitional year: revenue for the quarter was approximately $1.48M (derived from FY less 9M), with gross margin of ~25.4% and a net loss of ~$0.29M, reflecting project timing into Q1’20, start-up costs in Australia, and elevated corporate expenses tied to financing and audit activities .
Full-year 2019 revenue was $6.82M (down ~9.7% YoY) with a net loss of $0.72M (vs. $0.55M loss in 2018), driven by non-cash charges of ~$0.41M and investment in new renewable initiatives; both subsidiaries were operationally profitable for the year .
Backlog and awards remained active into Q4: management cited $5.2M in contract awards in the last four months of 2019 and an ~$38M bid list entering 2020, supported by a $3M equity line to fund growth .
No Wall Street consensus from S&P Global was available for EPS or revenue, so there is no formal beat/miss comparison; micro-cap coverage appears limited (S&P Global consensus unavailable for VENG).

What Went Well and What Went Wrong

What Went Well
- Both wholly-owned subsidiaries generated an operating profit for FY19, demonstrating underlying operating traction despite corporate-level losses .
- Commercial momentum: $5.2M in new project awards in the last four months of 2019 and an ~$38M bid list heading into 2020; management expects “significant gains” in renewable energy revenue in 2020 .
- Secured a $3M equity line to support growth, giving access to capital for expansion and project execution .
What Went Wrong
- FY19 revenue declined ~~9.7% YoY to $6.82M and net loss widened to $0.72M, reflecting non-cash charges (~~$0.41M) and investment in Australia .
- Sequential softness in Q4: revenue of ~$1.48M declined ~12.8% QoQ with a larger operating loss (−$0.18M), as some projects slipped into Q1’20 and corporate costs remained elevated .
- Consensus/estimates and an earnings call transcript were unavailable, limiting external validation and contributing to informational opacity for investors (no S&P Global consensus; no transcript found).

Financial Results

Quarterly P&L (3 months)

Metric	Q1 2019	Q2 2019	Q3 2019	Q4 2019
Revenue ($)	1,704,273	1,927,921	1,701,365	1,483,765 (FY19 − 9M19)
Gross Profit ($)	507,835	618,599	459,735	376,277 (FY19 − 9M19)
Gross Margin (%)	29.8% (507,835/1,704,273)	32.1% (618,599/1,927,921)	27.0% (459,735/1,701,365)	25.4% (376,277/1,483,765)
Operating Income ($)	−118,717	−32,358	−117,447	−184,817 (FY19 − 9M19)
Operating Margin (%)	−7.0% (−118,717/1,704,273)	−1.7% (−32,358/1,927,921)	−6.9% (−117,447/1,701,365)	−12.5% (−184,817/1,483,765)
Net Income ($)	−143,638	−105,223	−189,403	−286,129 (FY19 − 9M19)
Basic EPS ($)	−0.02	−0.01	−0.03	n/a (not disclosed)

Full-Year Comparison

Metric	FY 2018	FY 2019
Revenue ($)	7,546,437	6,817,324
Gross Profit ($)	2,013,454	1,962,446
Gross Margin (%)	26.7% (2,013,454/7,546,437)	28.8% (1,962,446/6,817,324)
Net Income ($)	−554,010	−724,393
Basic EPS ($)	−0.07	−0.09

Balance Sheet Snapshot

Metric	Mar 31, 2019	Sep 30, 2019	Dec 31, 2019
Cash & Equivalents ($)	328,439	242,389	277,620
Total Assets ($)	3,659,042	3,631,683	3,468,431
Total Liabilities ($)	2,248,081	2,481,204	2,571,713
Stockholders’ Equity ($)	1,410,961	1,150,479	896,718

Operational KPIs and Activity

KPI	Q2 2019	Q3 2019	Q4 2019
Bid/Pipeline	“Over $40M in bids” (incl. ~$4M renewable)	“Close to $30M” bid list	“Increased bid list to ~ $38M”
New Contract Awards	—	“Over $3.8M in new contracts, primarily Q4 completion; some to Q1’20”	“$5.2M in new project awards in last four months”
Capital Access	Executed $3M equity financing line	Raised growth capital	$3M equity line in place (subject to market)
Renewable Expansion	—	Subsidiaries established renewable efforts	Established renewable energy division in Australia
Subsidiaries’ Profitability	Operationally profitable	Operationally profitable YTD	Both subsidiaries operating profit for FY19

Segment breakdown: Not disclosed; the company reports on a consolidated basis without segment detail in these releases .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Renewable energy revenue trajectory	2020	None	Management “believe[s] that 2020 should see significant gains in renewable energy revenue production”	Raised qualitative outlook
Project timing	Q4 2019–Q1 2020	None	“$3.8M in new contracts… primarily completed in the fourth quarter, with some… pushed out to the first quarter of 2020”	Timing shift (Q4 → Q1)
Capital availability	2020	None	$3M equity line of credit in place to fund growth (subject to market conditions)	New financing
Non-cash charges	Forward	Non-cash charges affected 2019	Plan to minimize non-cash charges going forward to support positive net income	Operating focus

No formal numeric ranges (revenue, margins, tax) were provided in these materials .

Earnings Call Themes & Trends

No Q4 2019 earnings call transcript was found for VENG/HCCC; we searched for an earnings-call-transcript in Q4’19–Q1’20 and none was available. Commentary below reflects press releases .

Topic	Previous Mentions (Q2, Q3)	Current Period (Q4)	Trend
Renewable energy expansion	Q2: ~$4M of bids specific to renewable energy ; Q3: both subsidiaries established renewable efforts	Established renewable division in Australia; expect 2020 renewable gains	Improving
Bid pipeline	Q2: >$40M bids	Q3: ~ $30M	Q4: ~ $38M
Capital access	Q2: Executed $3M equity line	Q3: Successful capital raising	Q4: $3M ELOC referenced
Subsidiary profitability	Q2: Operationally profitable	Q3: Operationally profitable YTD	FY19: Both subs operating profit
Non-cash charges	Q2–Q3: Non-cash charges depressed reported earnings; plan to minimize going forward	FY release reiterates focus on operational performance and managing corporate expenses	Improving focus

Management Commentary

“Fiscal year 2019 was a year of investment… We established a renewable energy effort in Australia… we believe that 2020 should see significant gains in renewable energy revenue production.”
“With our $3 million equity line of credit… we have access to capital to continue the growth anticipated for 2020.”
“Our two subsidiaries are operationally profitable… Corporate expenses have been more than originally budgeted this year due primarily to capital raising efforts.”
“Revenue production was up 12% from the previous quarter… we incurred most of our annual audit fees and… financing transaction [costs]… HCCC recently executed a $3 million equity financing line.”
“The first quarter is typically our slowest… we have increased our overall bid list from $27 million… to $33 million… financial condition remains solid with $328,439 in cash and $3,659,042 in assets as of March 31, 2019.”

Q&A Highlights

No earnings call transcript was available for Q4 2019; no Q&A to report. We searched for “earnings call transcript” in the Q4’19–Q1’20 window and found none for VENG/HCCC.

Estimates Context

S&P Global consensus for Q4 2019 EPS and revenue was unavailable for VENG; the S&P/CIQ mapping could not be retrieved, and no third-party consensus was found, so no beat/miss analysis versus Street can be provided (S&P Global consensus unavailable).

Key Takeaways for Investors

Q4 softness appears driven by project timing into Q1’20, Australia start-up costs, and elevated corporate expenses, not demand; pipeline and awards remained robust into year-end .
Underlying operations of both subsidiaries were profitable in FY19, suggesting operating leverage potential if corporate expense and non-cash items are contained .
The $3M equity line provides a funding bridge to convert backlog, but execution discipline and working capital management will be critical given the balance sheet’s modest equity base at year-end 2019 .
Watch for 2020 renewable revenue ramp from Australia and broader clean-energy opportunities; conversion of the ~$38M bid list and timely delivery of the $5.2M+ in late-2019 awards are near-term catalysts .
Margin trajectory bears monitoring: gross margin compressed sequentially to ~25% in Q4; improved mix and scale will be necessary to offset corporate costs and achieve sustained profitability .
Absent consensus coverage, stock reactions may hinge on contract wins/conversions, funding updates, and progress on minimizing non-cash charges—communication cadence will matter for investor confidence .

Notes on sources:

Q4 2019 figures (revenue, gross profit, operating income, net loss) are derived from FY2019 and 9M2019 reported totals in company 8-K press releases and financial statements .
Prior quarters (Q1–Q3 2019), FY2019 and FY2018, balance sheet, and management commentary are cited directly from VENG/H/Cell Energy 8-Ks and exhibits .

VISION ENERGY Corp (VENG)·Q4 2019 Earnings Summary