DALLAS, TX, Aug. 16, 2018 (GLOBE NEWSWIRE) -- Zenergy Brands, Inc. (Ticker: ZNGY), the nation's next-generation utility announced today it has filed its Form 10-Q with the SEC, reporting financials from the second quarter (Q2) for 2018.
Zenergy, which has previously been in a pre-revenue phase in 2017, is pleased to report its financials from Q2. For the three months ended June 30, 2018, Zenergy reported total revenue of $464,404, which marks a 54% increase when compared to the total revenue of $301,809 from the previous quarter. The revenue growth is primarily due to the Company’s retail electricity services, and energy conservation and efficiency contracts.
Zenergy also finished the quarter with $3,959,862 in total assets and reported a gross profit for the second consecutive quarter. The Company believes these are positive trends that will continue now that it is fully operating in the marketplace in its three operating areas —retail energy, energy conservation, and smart home and building automation. The Company’s gross profit for Q2 was $109,315, a 17% increase from the previous quarter. Zenergy’s trademarked Zero Cost Program™, wherein each customer agreement represents a long-term contracted revenue stream for the Company, has been the primary driver in its asset growth.
For added perspective, the Company’s YTD revenue stands at $766,213, as compared to just $10,126 from the same period last year, and its total assets through June 30th, 2018 are $3,959,862, as compared to just $379,763 from the same period the previous year. From a percentage standpoint, that marks an increase of 7,566.79% in YTD revenue and an increase of 1,042.72% in YTD total assets when compared to this same period the previous year.
Total general and administrative expenses increased as well, from $750,861 in Q1 to just over $1.1 million in Q2. The increase in operating expenses is primarily due to cost of goods sold related to our retail energy business, the ongoing rollout of its Zero Cost Program™ and smart home divisions, and ramping up sales and marketing efforts across the Company.
Rodriguez added, “As most fast-growing companies understand, growth consumes cash, so we are always facing the tough decision of how to best apply the limited resources we do have. Overall, we believe we are heading in the right direction and will continue striving to increase our enterprise value for our shareholders.”
The Company also posted a shareholders’ deficit of negative $2.6 million (approx.), of which an estimated $1M is referred to as “toxic notes” by management. Zenergy Chairman, Mr. Byron Young, addressed this in the following remarks, “There are two methods to remedy this negative position—one is to bring in new and friendlier capital sources, and the other is to continue growing our revenue and assets. We remain steadfast in our commitment to executing both of these strategies simultaneously.”
Zenergy invites all shareholders and the investment community at large to view its filings at https://www.otcmarkets.com/stock/ZNGY/overview and to subscribe to its mailing list on its corporate website, www.zenergybrands.com, to remain apprised of all relevant news and updates.
ABOUT ZENERGY BRANDS, INC.
Zenergy Brands, Inc. (Ticker: ZNGY), is a next-generation energy and technology company operating in the emerging smart energy, conservation, and utility industries. The Company provides energy conservation, smart controls, and efficiency-based products and services as a fully integrated energy company. Zenergy is a public company, fully reporting to the SEC and currently trading on the OTCQB, a venture market designed for early-stage and developing U.S. and international companies. To learn more, visit www.zenergybrands.com or www.whatsizenergy.com, and follow the Company’s social media accounts via the links below:
Facebook: Zenergy Brands
Twitter: @ZenergyBrands
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FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking statements. The words “believe,” “expect,” “should,” “intend,” “estimate,” “projects,” variations of such words and similar expressions identify forward-looking statements, but their absence does not mean that a statement is not a forward-looking statement. These forward-looking statements are based upon the company's current expectations and are subject to some risks, uncertainties, and assumptions. The company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. Among the critical factors that could cause actual results to differ significantly from those expressed or implied by such forward-looking statements are risks detailed in the company's filings, which are on file at www.sec.gov and www.OTCmarkets.com.