CREG

Rating neutralAI Memo

Smart Powerr

As of 2026-05-29/Confidence medium

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Data freshness

AI Memo

As of 2026-05-29 • Model: RankAlpha Sentiment Codex

Decision Panel

Action, confidence, horizon, and decision blockers at a glance.

Action

neutral

Confidence

medium

Horizon

—

Key catalyst

Q1 2026 filing confirms a tiny revenue base and continued losses • 2026-06-10

Expected move: -31%

Biggest risk

Revenue is still only six figures per quarter, operating losses remain material, and the new financing plus optional second closing increases dilution risk. With no analyst target or revision data available, the stock is still driven more by balance-sheet events than by operating momentum.

Invalidation

Break below $0 or thesis failure.

What would change my mind?

The May 2026 financing improves near-term runway, Q1 revenue was positive year over year, and gross profit remained positive. If management uses the capital to land additional projects or customer wins, the market could re-rate the name off a larger revenue base rather than absolute earnings.

Research note

Recommendation

neutral

Confidence

medium

As of

2026-05-29

Base target

p=45%

Bull target

p=20%

Bear target

p=35%

Key bullets

Fast scan of bull, bear, and watch items

BullKey bullets

Long-term rerating depends on converting financing into repeatable operating scale
The May 2026 financing improves near-term runway, Q1 revenue was positive year over year, and gross profit remained positive.
If management uses the capital to land additional projects or customer wins, the market could re-rate the name off a larger revenue base rather than absolute earnings.

BearKey bullets

Forward visibility is thin: no analyst target or estimate-revision data were available, and recent AP 'most active' items are generic rather than company-specific.
Nasdaq bid-price compliance and appeal timing remain a live overhang; the stock's sub-$1 trading history keeps delisting/suspension risk and financing pressure in focus [#8-K-2026-05-07].
Q1 2026 operating results remain very small: $108.4k revenue, $547.4k net loss, and negative operating cash flow [#10-Q-2026-05-15].

WatchKey bullets

Q1 2026 filing confirms a tiny revenue base and continued losses

Summary

High-level snapshot

Recommendation

neutral

Model confidence

medium

Timeframe

Asset

Equity

Trigger

Base case: $0 (p=45%)

Bull/Bear spread: +3% / -66%

Vs latest close: Bull +3% · Base -31% · Bear -66%

Scenario probabilities

Bull Target: $0 (p=20%)Base Target: $0 (p=45%)Bear Target: $0 (p=35%)

Commentary

This is a low-coverage, filing-driven setup. The actionable primary-source changes are the May 20 financing and the Q1 2026 loss profile; both point to runway improvement but also dilution and a still-tiny operating base. No analyst target or revision data were available, and the recent AP 'most active' items are generic, so the memo stays cautious and monitoring-oriented rather than thesis-changing.

As of 2026-05-29 • Updated bi-weekly / post-earningsSource: Internal modelMethodology

Analyst Summary

Thesis highlights from the latest analysis

Bull Case

Bear Case

Drivers

Scannable catalysts and supporting factors

Long-term rerating depends on converting financing into repeatable operating scale

Scenarios

Bull Target (Scenario probability)

$0 / p=20% prob

Base Target (Scenario probability)

$0 / p=45% prob

Bear Target (Scenario probability)

$0 / p=35% prob

Price $0 as of 2026-06-02

Nearest Scenario: Bull (∆ 3%)

Targets vs latest close: Bull +3% · Base -31% · Bear -66%

Sentiment & Exposure

News Sentiment (30d)

-0.20

Social Sentiment (7d)

0.00

Events

Other notable items detected

EVENT2026-06-10
Q1 2026 filing confirms a tiny revenue base and continued losses
For the quarter ended March 31, 2026, revenue was $108,353, gross profit was $54,670, net loss was $547,410, and net cash used in operating activities was $125,927, which keeps the stock framed as a micro-scale execution story rather than an earnings compounder [#10-Q-2026-05-15].
Prob 85.00% • Move -6.00% • Priced-in 80.00%
EVENT2026-06-19
May 20 registered direct offering extends runway but adds dilution
The company closed a registered direct offering of 4.5 million shares at $0.45 per share and said it received about $2 million in gross proceeds for working capital and general corporate purposes; the agreement also allows an additional 4.5 million shares to be sold within 30 days, so the near-term tradeoff is liquidity versus dilution [#8-K-2026-05-22].
Prob 70.00% • Move -10.00% • Priced-in 60.00%

Short-term Catalysts

Next few weeks

No short-term catalysts

Long-term Catalysts

Months to a year

Long-term rerating depends on converting financing into repeatable operating scale
2026-12-31
The 2025 10-K and 2026 Q1 results both point to a very small operating base, so any durable rerating likely requires repeat customer wins, backlog growth, or a clearer path to profitability rather than another financing-supported quarter [#10-K-2026-03-31] [#10-Q-2026-05-15].
Prob 30% • Move 25% • Priced-in 20%

Risks

Forward visibility is thin: no analyst target or estimate-revision data were available, and recent AP 'most active' items are generic rather than company-specific.
Nasdaq bid-price compliance and appeal timing remain a live overhang; the stock's sub-$1 trading history keeps delisting/suspension risk and financing pressure in focus [#8-K-2026-05-07].
Q1 2026 operating results remain very small: $108.4k revenue, $547.4k net loss, and negative operating cash flow [#10-Q-2026-05-15].
The May 19/20 financing adds dilution risk and leaves the company exposed to additional equity issuance over the next month [#8-K-2026-05-22].

Peers

Symbol	Summary
CYCU	Same-sector micro-cap comparator; useful mainly for liquidity and valuation context, not as a clean operating peer.
IPDN	Another small commercial/professional-services name; more useful as a micro-cap sentiment proxy than a direct fundamentals peer.
OFAL	Market-cap-near peer in the same sector; helps bracket small-cap multiple ranges but appears only loosely related operationally.

Sources

Internal and external references used in this analysis

Model source: RankAlpha Sentiment Codex
Analysis date: 2026-05-29

AI Stock Memo: CREG - Smart Powerr - RankAlpha