PART I – FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Unaudited financial statements for Q3 2021 show significant asset growth from the IPO, but also increased net losses due to higher costs and operating expenses [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Balance sheets show total assets surged to **$235.4 million** by Sep 30, 2021, driven by IPO cash, significantly boosting stockholders' equity Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | Dec 31, 2020 | Sep 30, 2021 | | :--- | :--- | :--- | | **Assets** | | | | Cash | $32,359 | $140,662 | | Total current assets | $65,717 | $229,164 | | **Total assets** | **$71,393** | **$235,429** | | **Liabilities & Equity** | | | | Total current liabilities | $59,809 | $66,408 | | **Total liabilities** | **$63,942** | **$72,070** | | Accumulated deficit | $(42,643) | $(125,351) | | **Total stockholders' equity** | **$7,451** | **$163,359** | [Condensed Consolidated Statements of Comprehensive Loss](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) Q3 2021 saw a net loss of **$22.9 million** on **$53.0 million** revenue, a significant deterioration from the prior year due to gross loss and rising operating expenses Q3 and Nine-Month Performance Comparison (in thousands, except per share data) | Metric | Q3 2020 | Q3 2021 | Nine Months 2020 | Nine Months 2021 | | :--- | :--- | :--- | :--- | :--- | | Total revenue | $59,640 | $52,989 | $143,173 | $168,804 | | Gross profit (loss) | $2,866 | $(8,039) | $8,464 | $(23,970) | | Loss from operations | $(2,525) | $(22,771) | $(5,587) | $(103,261) | | Net loss | $(2,840) | $(22,916) | $(6,196) | $(82,707) | | Net loss per share (Basic & Diluted) | $(0.04) | $(0.24) | $(0.09) | $(1.00) | [Condensed Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Stockholders' equity substantially increased in the first nine months of 2021, primarily from **$241.2 million** in IPO proceeds, despite a **$54.2 million** stock repurchase and growing accumulated deficit - The company issued 19,840,000 shares of common stock in connection with its IPO, raising **$241.2 million** in net proceeds[22](index=22&type=chunk)[91](index=91&type=chunk) - Stock-based compensation expense for the nine months ended September 30, 2021, was **$58.5 million**, a significant increase from **$1.4 million** in the same period of 2020[22](index=22&type=chunk)[86](index=86&type=chunk)[87](index=87&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Nine-month cash flow shows **$92.4 million** used in operations, offset by **$178.1 million** from IPO financing and **$21.6 million** from investing, leading to a **$107.3 million** cash increase Nine-Month Cash Flow Summary (in thousands) | Cash Flow Activity | Nine Months 2020 | Nine Months 2021 | | :--- | :--- | :--- | | Net cash used in operating activities | $(14,638) | $(92,414) | | Net cash provided by investing activities | $0 | $21,554 | | Net cash provided by financing activities | $26,784 | $178,140 | | **Net increase in cash and restricted cash** | **$12,126** | **$107,289** | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail the April 2021 IPO raising **$241.2 million**, a Q2 2021 financial statement revision, a **$20.8 million** gain from an equity disposal, a new **$100 million** credit facility, and a **$134 million** lawsuit - The company completed its IPO on April 30, 2021, issuing 19,840,000 shares and receiving net proceeds of **$241.2 million** after underwriting discounts[27](index=27&type=chunk)[29](index=29&type=chunk) - Previously issued financial statements for Q2 2021 were revised to correct immaterial errors in the calculation of EPS and an overstatement of stock-based compensation expense by **$3.5 million**[33](index=33&type=chunk) - On June 24, 2021, the company disposed of its investment in Dimension Energy LLC for approximately **$22.0 million**, recognizing a gain of **$20.8 million**[69](index=69&type=chunk) - The company is defending against a lawsuit from FCX Solar, LLC, which seeks damages of approximately **$134 million**; management believes the claims are without merit and the likelihood of a material loss is remote[82](index=82&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q3 2021 performance, noting a 7% YoY product revenue decrease, negative gross margin due to **$5.5 million** in unpassed shipping costs, and surging operating expenses from IPO-related stock-based compensation, while maintaining strong liquidity post-IPO [Results of Operations](index=26&type=section&id=Results%20of%20Operations) Q3 2021 total revenue decreased to **$53.0 million**, resulting in an **$8.0 million** gross loss due to a 27% increase in cost per MW, while operating expenses surged to **$14.7 million** from increased stock-based compensation - Q3 2021 product revenue decreased by 7% YoY to **$45.6 million**, driven by a 16% decrease in MW shipped, partially offset by a higher Average Selling Price (ASP)[138](index=138&type=chunk) - Gross margin was negative for Q3 2021, impacted by approximately **$5.5 million** in increased shipping and logistics costs that were not passed on to customers[144](index=144&type=chunk) - For the nine months ended Sep 30, 2021, cost of revenue was impacted by approximately **$4.5 million** in expenditures for retrofits, remediations, and product reconfigurations for certain previously installed solar tracker systems[143](index=143&type=chunk) - General and administrative expenses for the nine months of 2021 increased to **$63.2 million** from **$7.6 million** in 2020, primarily due to a **$47.4 million** increase in stock-based compensation triggered by the IPO[152](index=152&type=chunk) [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with **$140.7 million** cash post-IPO and an undrawn **$100 million** credit facility, despite using **$92.4 million** in cash for operations in the first nine months - The company's primary source of financing has been sales of common stock, including the recent IPO, and customer payments[155](index=155&type=chunk) - A new **$100 million** senior secured revolving credit facility was established on April 30, 2021, and remains undrawn as of September 30, 2021[164](index=164&type=chunk) - The company intends to make up to **$30 million** of development capital available to a tracker customer as part of a significant project commitment[155](index=155&type=chunk) [Non-GAAP Financial Measures](index=32&type=section&id=Non-GAAP%20Financial%20Measures) Non-GAAP metrics show an Adjusted EBITDA loss of **$16.1 million** for Q3 2021 and **$39.5 million** for the nine-month period, primarily adjusted for stock-based compensation and equity investment disposal gains Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | Metric | Q3 2020 | Q3 2021 | Nine Months 2020 | Nine Months 2021 | | :--- | :--- | :--- | :--- | :--- | | Net loss | $(2,840) | $(22,916) | $(6,196) | $(82,707) | | Stock-based compensation | $448 | $5,381 | $1,381 | $58,531 | | (Gain) from disposal of equity investment | $0 | $(210) | $0 | $(20,829) | | Non-routine legal fees | $0 | $988 | $0 | $1,763 | | **Adjusted EBITDA** | **$(2,075)** | **$(16,092)** | **$(4,164)** | **$(39,501)** | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=35&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from customer concentrations and commodity price fluctuations, particularly steel and aluminum, and rising logistics costs, without using financial hedges - The company is subject to indirect risk from fluctuating market prices of commodity raw materials, including steel and aluminum, as increases in these prices raise the cost of procuring services from its contract manufacturers[186](index=186&type=chunk) [Item 4. Controls and Procedures](index=36&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were ineffective as of September 30, 2021, due to material weaknesses in internal control over financial reporting, with ongoing remediation efforts - Management concluded that disclosure controls and procedures were not effective as of the end of the period due to material weaknesses in internal control over financial reporting[187](index=187&type=chunk) - Identified material weaknesses include: a lack of sufficient experienced personnel for public company accounting, inadequate controls over the period-end close process, and ineffective IT general controls (ITGC)[188](index=188&type=chunk)[189](index=189&type=chunk)[190](index=190&type=chunk) - Remediation efforts are ongoing, including hiring a new Director of Internal Audit, increasing employee training, and enhancing accounting policies and procedures[192](index=192&type=chunk)[194](index=194&type=chunk) PART II – OTHER INFORMATION [Item 1. Legal Proceedings](index=38&type=section&id=Item%201.%20Legal%20Proceedings) The company is defending against two lawsuits from FCX Solar, LLC, including one seeking **$134 million** in damages, with management believing claims are without merit and a material loss is remote - FCX Solar, LLC has filed two lawsuits against the company, one alleging breach of contract and tort claims seeking damages of approximately **$134 million**, and another alleging patent infringement[197](index=197&type=chunk) - The company believes the claims are without merit and has determined that it is not probable that FCX will prevail, viewing the likelihood of any material loss as remote[197](index=197&type=chunk) [Item 1A. Risk Factors](index=38&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred to the risk factors previously disclosed in the company's IPO Prospectus dated April 29, 2021 - No material changes to the risk factors disclosed in the IPO Prospectus have occurred[198](index=198&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=39&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the use of **$241.2 million** net IPO proceeds, with **$54.2 million** used for stock repurchase and the remainder for general corporate purposes and potential investments - The IPO on April 30, 2021, generated net proceeds of **$241.2 million** after underwriting discounts and commissions[201](index=201&type=chunk)[203](index=203&type=chunk) - **$54.2 million** of the net proceeds were used to purchase and retire 4,455,384 shares of common stock[204](index=204&type=chunk) - The remaining proceeds are being used for general corporate purposes, working capital, and potential funding for a 1.7 GW multi-project transaction[205](index=205&type=chunk) [Item 3. Defaults Upon Senior Securities](index=39&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) Not applicable [Item 4. Mine Safety Disclosures](index=39&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Not applicable [Item 5. Other Information](index=39&type=section&id=Item%205.%20Other%20Information) None [Item 6. Exhibits](index=40&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed as part of the Form 10-Q report, including corporate governance documents, credit agreements, and SEC certifications

FTC Solar, Inc. (NASDAQ:FTCI) Q3 2021 Earnings Conference Call November 10, 2021 8:30 AM ET Company Participants Bill Michalek - Vice President, Investor Relations Sean Hunkler - President and Chief Executive Officer Patrick Cook - Chief Financial Officer Conference Call Participants Kashy Harrison - Piper Sandler Philip Shen - ROTH Capital Partners Maheep Mandloi - Credit Suisse Pavel Molchanov - Raymond James Moses Sutton - Barclays Jeff Osborne - Cowen & Company Operator Good day and thank you for standi ...

FTC Solar, Inc. (NASDAQ:FTCI) Q2 2021 Earnings Conference Call August 11, 2021 8:30 AM ET Company Participants Bill Michalek - Vice President, Investor Relations Tony Etnyre - President, Chief Executive Officer Patrick Cook - Chief Financial Officer Conference Call Participants Pavel Molchanov - Raymond James Philip Shen - Roth Capital Partners Maheep Mandloi - Credit Suisse Julien Dumoulin-Smith - Bank of America Securities Moses Sutton - Barclays Jeff Osborne - Cowen and Company Operator Ladies and gentle ...

| --- | --- | --- | --- | |-----------------|---------------------------------------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | August 11, 2021 | Second Quarter 2021 Earnings Results | | | 2 Forward-Looking Statements and Non-GAAP Financial Measures This presentation contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of h ...

Revenue and Sales Performance - For the six months ended June 30, 2021, 80% of total revenue was derived from tracker system sales, primarily to customers in the United States [106]. - The company recorded revenue from the first order of its SunPath performance-enhancing software, which is estimated to increase energy yield by up to 6% at solar installations [106]. - Total revenue for the six months ended June 30, 2021 was $115.8 million, an increase of $32.3 million or 39% compared to the same period in 2020 [131]. - Product revenue for Q2 2021 was $35.8 million, a decrease of $7.0 million or 16% compared to Q2 2020, primarily due to a 14% decrease in MW shipped [133]. - Service revenue for Q2 2021 was $14.4 million, an increase of $6.1 million or 73% compared to Q2 2020, driven by increased shipping and logistics revenue [135]. Expenses and Financial Performance - Gross profit for Q2 2021 was negative $16.1 million, a decrease of $14.7 million compared to Q2 2020, primarily due to increased shipping and logistics costs [140]. - Research and development expenses for Q2 2021 were $5.6 million, an increase of $4.1 million compared to Q2 2020, largely due to stock-based compensation related to the IPO [142]. - General and administrative expenses for Q2 2021 were $51.1 million, an increase of $48.9 million compared to Q2 2020, primarily due to stock-based compensation triggered by the IPO [146]. - Selling and marketing expenses for Q2 2021 were $3.2 million, an increase of $2.4 million compared to Q2 2020, driven by stock-based compensation related to the IPO [144]. - The company experienced a net loss of $55.8 million for Q2 2021, compared to a net loss of $6.8 million for Q2 2020 [131]. - The company recognized a net loss of $63.3 million for the six months ended June 30, 2021, compared to a net loss of $3.4 million for the same period in 2020 [155]. - The adjusted Non-GAAP net loss for the six months ended June 30, 2021, was $23,647,000, compared to $2,193,000 for the same period in 2020, reflecting a worsening financial performance [171]. Cash Flow and Financing - For the six months ended June 30, 2021, the net cash used in operating activities was $84.3 million, primarily due to a net loss of $63.3 million [155]. - Net cash provided by investing activities for the six months ended June 30, 2021, was $21.8 million, attributable to proceeds from the disposal of the equity method investment [156]. - Net cash provided by financing activities for the six months ended June 30, 2021, was $178.8 million, primarily from the sale of common stock during the IPO [158]. - The company had an increase in cash and restricted cash of $116.3 million for the six months ended June 30, 2021 [153]. - The company entered into a $100 million senior secured revolving credit facility in April 2021, which has not been drawn upon as of June 30, 2021 [161]. Supply Chain and Market Conditions - The company has reduced its reliance on China for its supply chain from 90% in 2019 to qualifying suppliers outside of China for all commodities as of June 30, 2021 [109]. - The impact of the COVID-19 pandemic has caused significant supply chain disruptions, leading to delays in product deliveries and increased logistics costs [110]. - The company has entered into contracts to secure necessary capacity and price certainty for a substantial portion of steel commodities required for anticipated production in the second half of the year [117]. - Cost per MW increased 23% year over year due to rising steel prices and shipping costs [139]. - Significant price increases in commodity raw materials could harm the company's financial condition and results of operations if costs cannot be recovered from customers [181]. Growth and Market Expansion - The company has experienced significant growth in contracted and awarded projects since the last earnings report, indicating a positive trend in market acceptance [106]. - The company has expanded its sales presence in multiple regions, including Australia, India, the Middle East, China, Europe, South Africa, and South-East Asia as of June 30, 2021 [124]. - The average selling price (ASP) of solar tracker systems is tracked to evaluate sales performance, with metrics related to price and cost of goods sold per megawatt (MW) being critical [108]. Compliance and Risk Management - As of June 30, 2021, the company was in full compliance with its financial condition covenants related to the credit agreement [162]. - The company has no off-balance sheet financing arrangements or liabilities, ensuring a straightforward financial position without hidden risks [175]. - The company is exposed to market risks primarily due to customer concentrations and fluctuations in prices of steel and aluminum, which could impact operating margins [180]. - The company has identified critical accounting policies related to revenue recognition and equity method investments, which require significant management judgment [177]. - There were no significant changes in critical accounting policies or estimates during the six months ended June 30, 2021, compared to the previous fiscal year [179].

Financial Performance - First quarter revenue doubled year-over-year to $65.7 million[4] - GAAP gross profit was $0.119 million, while non-GAAP gross profit was $0.182 million[13, 20] - GAAP operating loss was $8.019 million, while non-GAAP operating loss was $6.664 million[13] - GAAP net loss was $7.442 million, while non-GAAP net loss was $6.676 million[13] - Diluted EPS was $(0.11) on a GAAP basis and $(0.10) on a non-GAAP basis[13] - The company expects second quarter revenue to be between $41.0 million and $46.0 million[16] Business Highlights - Secured first sales of new SunPath performance enhancement software product[4] - Awarded two international projects in Australia[4] - Added over $280 million to executed contracts and awarded orders year-to-date, including $55 million since IPO[4] - Closed IPO adding $181 million to the company's debt-free balance sheet[4] Market and Product - Steel costs have increased 19% since the IPO[11] - Polysilicon costs have increased 49% since the IPO[11] - Freight costs have increased 18% since the IPO[11] - Module costs have increased 18% since the IPO[11]

FTC Solar, Inc. (NASDAQ:FTCI) Q1 2021 Earnings Conference Call June 8, 2021 9:00 AM ET Company Participants Tony Etnyre - President, Chief Executive Officer Patrick Cook - Chief Financial Officer Bill Michalek - Vice President, Investor Relations Conference Call Participants Michael Weinstein - Credit Suisse Pavel Molchanov - Raymond James Philip Shen - Roth Capital Partners Julien Dumoulin-Smith - BofA Securities Moses Sutton - Barclays Operator Welcome to the FTC Solar first quarter 2021 earnings conferen ...

Revenue and Growth - For the three months ended March 31, 2021, 86% of total revenue was derived from tracker system sales, with the majority coming from customers in the United States [96]. - Product revenue for Q1 2021 was $56.5 million, an increase of $26.0 million, or 85.3%, compared to $30.5 million in Q1 2020, driven by a 104% increase in MW shipped [125]. - Service revenue for Q1 2021 was $9.2 million, an increase of $7.3 million, or 384.2%, compared to $1.9 million in Q1 2020, primarily due to increased shipping and logistics revenue [126]. - Total revenue for Q1 2021 was $65.7 million, compared to $32.4 million in Q1 2020, reflecting a significant growth in both product and service revenues [123]. - Revenue growth is dependent on the increase in solar tracker projects and the company's ability to expand its market share in emerging markets [106]. Expenses and Profitability - Cost of revenue for Q1 2021 was $65.6 million, an increase of $40.2 million, or 158.3%, compared to $25.4 million in Q1 2020, mainly due to increased MW shipped and higher logistics costs [127]. - Gross profit for Q1 2021 decreased by $6.9 million, or 98%, to $119 thousand, compared to $6.98 million in Q1 2020, impacted by increased costs and lower margins [128]. - Research and development expenses for Q1 2021 were $2.0 million, an increase of $0.9 million, or 78%, compared to $1.1 million in Q1 2020 [129]. - General and administrative expenses for Q1 2021 were $5.1 million, an increase of $2.6 million, or 105%, compared to $2.5 million in Q1 2020 [131]. - The company anticipates that operating expenses will increase in absolute dollar amounts as it continues to invest in growth and expansion efforts [112]. Financial Position - Net cash used in operating activities for Q1 2021 was $27 million, primarily due to a net loss of $7.4 million, reflecting investments in operations and expansion [139]. - The company paid off its revolving line of credit with Western Alliance Bank during Q1 2021, which had an outstanding balance of $1.0 million [142]. - The company intends to maintain appropriate debt levels based on cash flow expectations and operational requirements, with potential incremental debt financings [135]. Losses and Adjusted Metrics - For the three months ended March 31, 2021, the company reported a net loss of $7,442,000 compared to a net income of $3,420,000 for the same period in 2020 [149]. - Adjusted EBITDA for the three months ended March 31, 2021, was $(6,664,000), a decrease from $3,390,000 in the same period of 2020 [149]. - Adjusted Non-GAAP net loss for the three months ended March 31, 2021, was $(6,676,000), compared to an adjusted net income of $3,430,000 in 2020 [152]. - The company reported an Adjusted EPS of $(0.10) for the three months ended March 31, 2021, down from $0.05 in the same period of 2020 [152]. Employee and Operational Expansion - As of March 31, 2021, the company had 207 full-time employees and has expanded its sales and support network globally, including locations in Australia, India, and Europe [95]. - The company plans to continue significant investments in technology and personnel to enhance product capabilities and expand its patent portfolio [98]. Supply Chain and Market Risks - The company has reduced its reliance on China for its supply chain from 90% in 2019 to qualifying suppliers outside of China for all commodities as of March 31, 2021 [100]. - The company experienced supply chain disruptions due to COVID-19, leading to increased lead times and logistics costs [101]. - The company is exposed to market risks primarily due to customer concentrations and fluctuations in steel and aluminum prices [159]. - Significant price increases in raw materials could reduce operating margins if the company cannot recover these costs from customers [160]. Accounting and Estimates - The company evaluates its estimates and assumptions regularly, acknowledging that actual results may differ significantly [159]. - There were no significant changes in critical accounting policies or estimates during the three months ended March 31, 2021 [158].