Accessibility StatementSkip Navigation 48,500 square-foot, LEED-certified facility now powered by advanced solar photovoltaic (PV) system SAN JOSE, Calif., Sept. 30, 2025 /PRNewswire/ --Â Maxeon Solar Technologies, Ltd. (NASDAQ: MAXN), a global leader in solar innovation and channels, together with its Preferred Partner, Chicago-based Hardt Electric, have announced a successful new solar energy installation to help power the American College of Chest Physicians (CHEST) headquarters in Glenview, Illinois. CH ...

Core Insights - Maxeon Solar Technologies reported a revenue of $39 million for the first half of 2025, a significant decline from $371.7 million in the same period of 2024 [3][18] - The company is facing ongoing challenges due to the exclusion of its solar panels from U.S. imports since July 2024, which has severely impacted its business [2][3] - Maxeon is committed to business transformation and fiscal discipline, exploring strategic alternatives to enhance liquidity and balance sheet strength [2][3] Financial Performance - Shipments decreased to 153.2 MW in the first half of 2025 from 1,014 MW in the same period of 2024 [3] - Gross loss for the first half of 2025 was $14.8 million, an improvement from a gross loss of $22.7 million in the first half of 2024 [3][18] - Operating expenses were $54 million, down from $110.3 million in the previous year [3][18] - Net loss attributable to stockholders was $65.5 million, slightly better than the net loss of $68.5 million in the first half of 2024 [3][19] Strategic Initiatives - The company is actively contesting the U.S. Customs & Border Protection's decision and has filed a complaint with the U.S. Court of International Trade [2] - Maxeon is evaluating the impact of recently enacted U.S. legislation on the solar industry and assessing strategic alternatives [2] - Ongoing discussions with the controlling shareholder, TZE, aim to reduce outstanding liabilities and enhance liquidity [2] Cash Flow and Assets - Cash and cash equivalents decreased to $17.2 million as of June 30, 2025, from $28.9 million at the end of 2024 [15][21] - Total current assets dropped to $145.1 million from $266 million at the end of 2024 [15][21] - The company reported a net cash used in operating activities of $95.3 million for the first half of 2025, compared to $147.2 million in the same period of 2024 [20]

Company Overview - Maxeon Solar Technologies reported revenue of $1.1 billion in 2023[8] - The company has a manufacturing capacity and offtake agreement of 3.5+ GW[10] - Maxeon's panels have a module efficiency of approximately 24%[22, 30] Financial Performance - Q1 2024 revenue was $187 million[60] - Q4 2022 revenue was $324 million[60] - Q1 2023 revenue was $318 million[60] - Q2 2023 revenue was $348 million[60] - Q3 2023 revenue was $228 million[60] - Q4 2023 revenue was $229 million[60] - Adjusted EBITDA for Q1 2024 was -$39 million[64, 65, 70] Geographical Revenue - In Q1 2024, the U S accounted for $133 million of the total revenue[67] - In Q4 2022, the U S accounted for $28 million of the total revenue[67] - In Q1 2023, the U S accounted for $131 million of the total revenue[67] - In Q2 2023, the U S accounted for $161 million of the total revenue[67] - In Q3 2023, the U S accounted for $194 million of the total revenue[67] - In Q4 2023, the U S accounted for $145 million of the total revenue[67] - The percentage of revenue from the U S increased from 50% in Q4 2022 to 62% in Q4 2023[69] - The percentage of revenue from the U S increased from 51% in Q1 2023 to 71% in Q1 2024[69]

[Maxeon Solar Technologies Fourth Quarter and Fiscal Year 2024 Results](index=1&type=section&id=Maxeon%20Solar%20Technologies%20Fourth%20Quarter%20and%20Fiscal%20Year%202024%20Results) [Management Commentary & Business Outlook](index=1&type=section&id=Management%20Commentary%20%26%20Business%20Outlook) The company attributes poor performance to a U.S. import ban and is restructuring to focus solely on the U.S. market - The U.S. Customs & Border Protection (CBP) has blocked imports of Maxeon 3, 6, and Performance 6 panels since July 2024, citing UFLPA concerns, a decision the company is legally contesting[2](index=2&type=chunk) - Maxeon is restructuring to **focus exclusively on the U.S. market**, which includes streamlining operations, reducing costs, and identifying additional domestic component vendors[2](index=2&type=chunk) - The company has **divested assets in the Philippines and other non-U.S. businesses** to improve liquidity and has restructured debt interest payments to reduce its cash burden[2](index=2&type=chunk) - Due to ongoing restructuring and a volatile policy environment, the company has **suspended financial guidance**, will not hold a conference call, and will switch to semi-annual reporting[2](index=2&type=chunk) [Financial Highlights](index=1&type=section&id=Selected%20Q4%20and%20Fiscal%20Year%20Unaudited%20Financial%20Summary) Fiscal year 2024 saw a sharp revenue decline to $509.0 million, a significant net loss of $614.3 million, and negative Adjusted EBITDA Fiscal Year 2024 vs. 2023 Financial Performance | Metric | Fiscal Year 2024 | Fiscal Year 2023 | Change | | :--- | :--- | :--- | :--- | | Shipments (MW) | 1,424 | 2,963 | -51.9% | | Revenue | $509.0M | $1,123.1M | -54.7% | | GAAP Gross (Loss) Profit | ($249.4M) | $78.1M | Negative Turnaround | | GAAP Net Loss | ($614.3M) | ($275.8M) | +122.7% Increase in Loss | | Adjusted EBITDA | ($376.1M) | $3.7M | Negative Turnaround | Q4 2024 vs. Q4 2023 Financial Performance | Metric | Q4 2024 | Q4 2023 | Change | | :--- | :--- | :--- | :--- | | Shipments (MW) | 211 | 653 | -67.7% | | Revenue | $48.8M | $228.8M | -78.7% | | GAAP Gross Loss | ($47.7M) | ($34.5M) | +38.3% Increase in Loss | | GAAP Net Loss | ($106.0M) | ($186.3M) | -43.1% Decrease in Loss | | Adjusted EBITDA | ($74.9M) | ($37.6M) | +99.2% Increase in Loss | [Consolidated Financial Statements](index=10&type=section&id=Consolidated%20Financial%20Statements) The statements show a deteriorating financial position, with total assets falling to $376.3 million, equity turning negative, and a significant net loss [Condensed Consolidated Statements of Operations](index=12&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) FY 2024 revenue halved to $509.0 million, leading to a gross loss of $249.4 million and a widened net loss of $614.3 million Fiscal Year Statement of Operations (in thousands) | Line Item | FY 2024 | FY 2023 | | :--- | :--- | :--- | | Revenue | $509,048 | $1,123,110 | | Gross (Loss) Profit | $(249,413) | $78,115 | | Operating Loss | $(576,640) | $(219,205) | | Net Loss Attributable to Stockholders | $(614,300) | $(275,829) | [Condensed Consolidated Balance Sheets](index=10&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) Total assets fell to $376.3 million while total equity became negative at -$288.4 million by year-end 2024 Key Balance Sheet Items (in thousands) | Line Item | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $28,895 | $190,169 | | Total current assets | $266,016 | $619,019 | | Total assets | $376,272 | $1,002,009 | | Total current liabilities | $338,508 | $431,936 | | Total liabilities | $664,637 | $997,367 | | Total equity | $(288,365) | $4,642 | [Condensed Consolidated Statements of Cash Flows](index=13&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Net cash used in operations was $270.2 million, contributing to a significant drop in year-end cash to $31.0 million Fiscal Year Cash Flow Summary (in thousands) | Cash Flow Activity | FY 2024 | FY 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | $(270,156) | $(254,295) | | Net cash (used in) provided by investing activities | $(25,243) | $13,926 | | Net cash provided by financing activities | $141,233 | $167,951 | - Total cash, cash equivalents, and restricted cash **decreased from $195.5 million at the end of FY2023 to $31.0 million at the end of FY2024**[24](index=24&type=chunk) [Non-GAAP Financial Measures](index=5&type=section&id=Presentation%20of%20Non-GAAP%20Financial%20Measures) The company uses non-GAAP measures like Adjusted EBITDA, which was a loss of $376.1 million, to show its view of ongoing performance - The company uses non-GAAP measures to supplement GAAP results, believing they enhance comparability by removing items not representative of core operations[11](index=11&type=chunk)[12](index=12&type=chunk) - Key adjustments to derive non-GAAP figures include **stock-based compensation, restructuring charges and fees, remeasurement losses on financial instruments**, and provisions for expected credit losses[13](index=13&type=chunk)[14](index=14&type=chunk) Reconciliation of GAAP Net Loss to Adjusted EBITDA (in thousands) | Line Item | Fiscal Year 2024 | Fiscal Year 2023 | | :--- | :--- | :--- | | GAAP Net loss attributable to the stockholders | $(614,300) | $(275,829) | | Adjustments (Interest, Taxes, D&A, etc.) | +$103,997 | +$88,305 | | EBITDA | $(510,303) | $(187,524) | | Further Non-GAAP Adjustments | +$134,154 | +$191,194 | | **Adjusted EBITDA** | **$(376,149)** | **$3,670** | [Forward-Looking Statements & Risk Factors](index=3&type=section&id=Forward-Looking%20Statements) The company faces significant risks including its ability to continue as a going concern, the success of its U.S. strategy, and an ongoing import ban - Major risks include the ability to **continue as a going concern**, service outstanding debt, and successfully execute restructuring plans[6](index=6&type=chunk) - The **denial of U.S. market entry** for its products by the U.S. CBP for an unforeseeable time is a critical operational disruption and risk[6](index=6&type=chunk)[9](index=9&type=chunk) - The company's strategy is now focused on the U.S. market, which involves developing new U.S. vendors and supply chains, and managing its relationship with a controlling shareholder based in the PRC amid U.S.-China trade tensions[6](index=6&type=chunk)[7](index=7&type=chunk)

```markdown PART I [Key Information](index=9&type=section&id=Item%203.%20Key%20Information) The company faces severe liquidity issues, U.S. customs product detentions, and challenges in its strategic pivot to the U.S. market Risk Factors - The company has incurred recurring losses, faces significant liquidity risks, and has received an unqualified opinion from its auditor that includes a paragraph indicating substantial doubt about its ability to continue as a going concern[40](index=40&type=chunk)[49](index=49&type=chunk)[53](index=53&type=chunk) - Business operations are severely impacted by the continued detention and denial of entry for its solar panels by U.S. Customs and Border Protection (CBP), which significantly affects revenues, margins, and cash flows[40](index=40&type=chunk)[67](index=67&type=chunk) - The company is undergoing a major restructuring to focus exclusively on the U.S. market, which involves divesting non-U.S. businesses and developing a U.S. manufacturing facility, but the success of this plan is uncertain and contingent on securing financing[40](index=40&type=chunk)[65](index=65&type=chunk)[66](index=66&type=chunk) - As a controlled company with a majority shareholder (TZE) based in the PRC, Maxeon faces risks related to conflicts of interest, U.S. geopolitical tensions with China, and potential scrutiny under U.S. regulations concerning foreign entities[49](index=49&type=chunk)[195](index=195&type=chunk)[203](index=203&type=chunk) - Shareholders face risks of significant dilution from recent debt restructuring transactions and future capital raises, high stock price volatility, and reduced governance protections due to the company's status as a foreign private issuer and a controlled company[47](index=47&type=chunk)[154](index=154&type=chunk)[177](index=177&type=chunk) [Information On The Company](index=48&type=section&id=Item%204.%20Information%20On%20The%20Company) Maxeon is strategically shifting to focus on the U.S. market, divesting non-U.S. operations, and transitioning its manufacturing footprint History And Development Of The Company - In fiscal year **2024**, TZE became the company's controlling shareholder on August **30**, **2024**, following a series of financing transactions[212](index=212&type=chunk) - The company announced a strategic restructuring in November **2024** to focus exclusively on the U.S. market. This includes divesting its 'rest-of-the-world' distributed generation business and its Philippines manufacturing operations (SPML) to affiliates of TZE, with transactions completed in Q1 **2025**[214](index=214&type=chunk) - In late March **2025**, U.S. Customs & Border Protection (CBP) denied the company's protests regarding detained shipments of Maxeon **3**, **6**, and Performance **6** solar panels, leading to their continued exclusion from the U.S. market[214](index=214&type=chunk) Capital Expenditures (Fiscal Years 2022-2024) | Fiscal Year | Capital Expenditures (in millions) | | :--- | :--- | | 2024 | $52.1 | | 2023 | $67.5 | | 2022 | $63.3 | Business Overview - Maxeon is strategically restructuring to concentrate exclusively on the U.S. market, leveraging its premium solar technology[228](index=228&type=chunk)[242](index=242&type=chunk) - The company's primary products are the high-efficiency Maxeon line of Interdigitated Back Contact (IBC) solar panels and the cost-effective Performance line of shingled solar panels[233](index=233&type=chunk) FY 2024 Revenue Breakdown | Category | Percentage of Revenue | | :--- | :--- | | **By Product Line** | | | Maxeon Line | 72.8% | | Performance Line | 27.2% | | **By Geography** | | | United States | 63.0% | | EMEA | 26.5% | | Asia Pacific | 9.2% | | Other | 1.3% | - In response to tariffs and trade barriers, the company is establishing alternative manufacturing and supply chains, including a new facility in Albuquerque, New Mexico, and identifying domestic U.S. component vendors[239](index=239&type=chunk)[248](index=248&type=chunk) Organizational Structure - Maxeon became a standalone public company after its spin-off from SunPower. In fiscal year **2024**, TZE became the company's controlling shareholder on August **30**, **2024**[285](index=285&type=chunk)[286](index=286&type=chunk) - As part of its strategic restructuring to focus on the U.S. market, the company completed the divestiture of its Philippines operations and its 'rest-of-the-world' distributed generation business in the first quarter of **2025**[286](index=286&type=chunk) Property, Plants And Equipment - The company is evaluating options for its manufacturing facilities in Malaysia and Mexico, which may include repurposing, sale, or permanent shutdown, as part of its shift to U.S. domestic manufacturing[289](index=289&type=chunk) - Maxeon has executed a five-year lease for a manufacturing facility in Albuquerque, New Mexico, with a capacity of up to **2 GW**. Production is planned to begin in **2026**, contingent on securing necessary funding[291](index=291&type=chunk) - The company's ESG strategy is built on three pillars: environmental, social, and governance. In **2025**, it was ranked among the top sustainable corporations by Corporate Knights, and its Maxeon solar panels have achieved Cradle to Cradle Certified™ designation[293](index=293&type=chunk)[294](index=294&type=chunk)[295](index=295&type=chunk) [Operating And Financial Review And Prospects](index=66&type=section&id=Item%205.%20Operating%20And%20Financial%20Review%20And%20Prospects) The company experienced a dramatic decline in FY2024 revenue and profitability, facing severe liquidity issues and substantial doubt about its going concern status Operating Results Selected Consolidated Statements of Operations Data (FY 2024 vs. FY 2023) | (In thousands) | Fiscal Year Ended Dec 31, 2024 | Fiscal Year Ended Dec 31, 2023 | | :--- | :--- | :--- | | **Revenue** | $509,048 | $1,123,110 | | **Gross (loss) profit** | ($249,413) | $78,115 | | **Operating loss** | ($576,640) | ($219,205) | | **Net loss attributable to the stockholders** | ($614,300) | ($275,829) | - Revenue decreased by **$614.1 million** (**54.7%**) in fiscal year **2024** compared to **2023**. This was primarily due to the detention of solar modules by U.S. Customs, the termination of supply agreements with former major customer SunPower, and an industry-wide demand slowdown, particularly in Europe[353](index=353&type=chunk) - The company incurred significant restructuring charges of **$116.2 million** in fiscal year **2024** and **$125.5 million** in fiscal year **2023**, mainly related to rebalancing global operations and manufacturing capacity[342](index=342&type=chunk)[362](index=362&type=chunk) - The independent auditor's report includes an explanatory paragraph expressing substantial doubt about the company's ability to continue as a going concern, citing recurring net losses, a significant accumulated deficit, and a working capital deficiency[336](index=336&type=chunk) Adjusted EBITDA Reconciliation (FY 2024 vs. FY 2023) | (In thousands) | Fiscal Year Ended Dec 31, 2024 | Fiscal Year Ended Dec 31, 2023 | | :--- | :--- | :--- | | **GAAP Net loss attributable to the stockholders** | ($614,300) | ($275,829) | | **Adjusted EBITDA** | ($376,149) | $3,670 | Liquidity And Capital Resources Cash and Liquidity Position | (In thousands) | As of Dec 31, 2024 | As of Dec 31, 2023 | | :--- | :--- | :--- | | Unrestricted cash and cash equivalents | $28,895 | $190,169 | Summary of Cash Flows (FY 2024 vs. FY 2023) | (In thousands) | Fiscal Year Ended Dec 31, 2024 | Fiscal Year Ended Dec 31, 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | ($270,156) | ($254,295) | | Net cash (used in) provided by investing activities | ($25,243) | $13,926 | | Net cash provided by financing activities | $141,233 | $167,951 | - The company's financial condition raises substantial doubt about its ability to continue as a going concern due to recurring losses, negative cash flows, and the impact of U.S. product detentions[397](index=397&type=chunk) - To address the liquidity crisis, management is liquidating non-core assets, such as the 'rest-of-the-world' business, and has renegotiated payment terms with its controlling shareholder, TZE, to defer outstanding trade payables[398](index=398&type=chunk)[399](index=399&type=chunk) [Directors, Senior Management And Employees](index=86&type=section&id=Item%206.%20Directors%2C%20Senior%20Management%20And%20Employees) This section outlines the company's corporate governance, executive compensation, and significant employee headcount reduction due to restructuring Directors And Senior Management - The Board of Directors consists of **ten** members, including **five** designees from the controlling shareholder TZE, **four** independent directors, and the Chief Executive Officer[419](index=419&type=chunk)[447](index=447&type=chunk) Compensation - Eligible non-employee directors (Outside Directors) receive annual cash fees for board and committee service, plus an annual equity award of **$0.2 million** in RSUs[441](index=441&type=chunk) - Executive officer compensation for fiscal year **2024** included a corporate bonus plan (cash) and time-based Restricted Stock Units (RSUs) that generally vest over **three** years[443](index=443&type=chunk)[449](index=449&type=chunk) Board Practices - As a foreign private issuer and a "controlled company" under NASDAQ rules, Maxeon follows certain home country (Singapore) corporate governance practices in lieu of NASDAQ requirements. This includes not having a majority of independent directors on the board[464](index=464&type=chunk)[465](index=465&type=chunk) - The Board has **four** primary committees: Audit, Compensation, Strategy and Transformation, and Nominating and Corporate Governance. The Audit Committee is composed entirely of independent directors[452](index=452&type=chunk)[453](index=453&type=chunk) Employees Full-Time Equivalent Employees (Year-End) | As of | Total Employees | | :--- | :--- | | Dec 31, 2024 | 1,591 | | Dec 31, 2023 | 3,888 | | Jan 1, 2023 | 5,344 | - As a result of restructuring and divestitures, the total number of full-time equivalent employees further decreased to **405** as of April **21**, **2025**[469](index=469&type=chunk) [Major Shareholders And Related Party Transactions](index=99&type=section&id=Item%207.%20Major%20Shareholders%20And%20Related%20Party%20Transactions) TZE is the controlling shareholder, and the section details numerous related-party transactions, including asset sales and financing arrangements Major Shareholders - As of April **21**, **2025**, Zhonghuan Singapore Investment and Development Pte. Ltd. (TZE SG), a subsidiary of TZE, is the controlling shareholder, beneficially owning **9,959,362** shares, which represents **59.0%** of the company's ownership[483](index=483&type=chunk) - TotalEnergies, previously a major shareholder, ceased to own **5%** or more of the company's ordinary shares as of July **25**, **2024**[485](index=485&type=chunk) Related Party Transactions - In Q1 **2025**, the company completed the sale of its non-U.S. assets and subsidiaries, including its Philippines operations and 'rest-of-the-world' distributed generation business, to its controlling shareholder, TZE[487](index=487&type=chunk) - In fiscal year **2024**, the company engaged in a series of debt restructuring and financing transactions with TZE, including the issuance of convertible notes and the sale of ordinary shares, which resulted in TZE becoming the controlling shareholder[493](index=493&type=chunk)[495](index=495&type=chunk)[500](index=500&type=chunk) - The company has a silicon wafer master supply agreement with a subsidiary of TZE for the purchase of P-Type G12 wafers for its Performance line modules[504](index=504&type=chunk) [Financial Information](index=103&type=section&id=Item%208.%20Financial%20Information) This section highlights the impact of SunPower's bankruptcy on indemnification and a shareholder class action lawsuit filed in June 2024 Consolidated Statements And Other Financial Information - Following SunPower's Chapter **11** bankruptcy filing on August **5**, **2024**, the Separation and Distribution Agreement was rejected. As a result, Maxeon made a provision for an expected credit loss of **$12.1 million** in fiscal year **2024** for previously indemnified arrangements[509](index=509&type=chunk) - A shareholder class action complaint was filed against the company and certain officers on June **27**, **2024**, alleging violations of the Securities Exchange Act of **1934**[510](index=510&type=chunk) [Additional Information](index=104&type=section&id=Item%2010.%20Additional%20Information) This section details the company's corporate constitution under Singapore law and discusses U.S. and Singapore tax considerations for shareholders Constitution - The company's corporate affairs are governed by its Constitution and the laws of Singapore. New shares can only be issued with prior shareholder approval at a general meeting[519](index=519&type=chunk) - The company is subject to the Singapore Code on Take-overs and Mergers, which requires a mandatory offer under certain acquisition thresholds. However, the company received a conditional waiver from the Singapore Securities Industry Council as long as it is not listed on a Singapore exchange[540](index=540&type=chunk)[545](index=545&type=chunk) Taxation - For U.S. Holders, the company does not believe it was a Passive Foreign Investment Company (PFIC) for the **2024** taxable year but notes that PFIC status is determined annually and cannot be guaranteed for future years[568](index=568&type=chunk) - Under Singapore's one-tier corporate tax system, dividends paid by the company are tax-exempt for shareholders. Gains from the sale of shares are considered capital in nature and are generally not taxable in Singapore, subject to certain conditions[583](index=583&type=chunk)[585](index=585&type=chunk) [Quantitative And Qualitative Disclosures About Market Risk](index=121&type=section&id=Item%2011.%20Quantitative%20And%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks include foreign currency exchange rates and interest rate fluctuations, mitigated by hedging strategies - The company's primary market risk exposure is to foreign currency exchange rates, mainly related to sales to European customers denominated in Euros. In fiscal year **2024**, these sales represented **22%** of total revenue[406](index=406&type=chunk) - Maxeon uses hedging strategies, including foreign currency forward contracts, to mitigate balance sheet exposure to foreign currency fluctuations. As of December **31**, **2024**, the company held contracts with an aggregate notional value of **$12.0 million**[405](index=405&type=chunk)[409](index=409&type=chunk) - The company is exposed to interest rate risk, as higher rates can make it more difficult for customers to obtain financing for solar power systems, potentially lowering demand[412](index=412&type=chunk) PART II [Controls And Procedures](index=122&type=section&id=Item%2015.%20Controls%20And%20Procedures) The company's disclosure controls and internal control over financial reporting were concluded effective as of December 31, 2024 - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of December **31**, **2024**[619](index=619&type=chunk) - Management concluded that the company's internal control over financial reporting was effective as of December **31**, **2024**, based on the COSO framework[620](index=620&type=chunk)[621](index=621&type=chunk) - The effectiveness of the company's internal control over financial reporting has been audited by Ernst & Young LLP, which issued an unqualified opinion[622](index=622&type=chunk)[670](index=670&type=chunk) [Other Information](index=123&type=section&id=Item%2016.%20%5BReserved%5D) This section covers corporate governance, accountant fees, cybersecurity risk management, and NASDAQ listing standard exemptions Principal Accountant Fees And Services Principal Accountant Fees (Ernst & Young LLP) | (In thousands) | Fiscal Year Ended Dec 31, 2024 | Fiscal Year Ended Dec 31, 2023 | | :--- | :--- | :--- | | Audit fees | $2,291 | $2,944 | | Audit-related fees | $0 | $329 | | Tax fees | $458 | $116 | | Others | $187 | $227 | | **Total** | **$2,936** | **$3,616** | Corporate Governance - As a foreign private issuer and a controlled company, Maxeon follows its home country (Singapore) corporate governance practices in lieu of certain NASDAQ standards, such as the requirement for a majority-independent board of directors[633](index=633&type=chunk) Cybersecurity - The company has a cybersecurity risk management framework aligned with industry standards like NIST and ISO **27001**. The Board of Directors, through its Audit Committee, oversees this framework[639](index=639&type=chunk)[640](index=640&type=chunk)[648](index=648&type=chunk) - Management's cybersecurity governance is led by the Chief Information Officer (CIO), who oversees the Global Information Security (GIS) team. A Cyber Committee, chaired by the CFO, convenes to manage cybersecurity incidents[649](index=649&type=chunk)[650](index=650&type=chunk) - The company has not experienced any material cybersecurity incidents in the last **three** fiscal years[646](index=646&type=chunk) PART III [Financial Statements](index=127&type=section&id=Item%2018.%20Financial%20Statements) This section presents audited financial statements, with the auditor's unqualified opinion noting substantial doubt about going concern and identifying critical audit matters - The independent auditor, Ernst & Young LLP, issued an unqualified opinion on the financial statements but included an explanatory paragraph stating that substantial doubt exists about the Company's ability to continue as a going concern, citing recurring losses and negative cash flows[669](index=669&type=chunk)[671](index=671&type=chunk) - The audit identified three Critical Audit Matters: Warranty Valuation, due to the high degree of subjectivity and long warranty periods; Inventory Reserve Valuation, due to subjective judgments on demand and market conditions; and Convertible Debt and Warrants Valuation, due to the complexity and significant estimation uncertainty[674](index=674&type=chunk)[675](index=675&type=chunk)[677](index=677&type=chunk)[679](index=679&type=chunk) Consolidated Balance Sheet Summary | (In thousands) | As of Dec 31, 2024 | As of Dec 31, 2023 | | :--- | :--- | :--- | | **Total Current Assets** | $266,016 | $619,019 | | **Total Assets** | $376,272 | $1,002,009 | | **Total Current Liabilities** | $338,508 | $431,936 | | **Total Liabilities** | $664,637 | $997,367 | | **Total Equity (Deficit)** | ($288,365) | $4,642 | Consolidated Statement of Operations Summary | (In thousands) | FY 2024 | FY 2023 | FY 2022 | | :--- | :--- | :--- | :--- | | **Revenue** | $509,048 | $1,123,110 | $1,060,113 | | **Gross (loss) profit** | ($249,413) | $78,115 | ($47,948) | | **Net loss attributable to stockholders** | ($614,300) | ($275,829) | ($267,424) | ```

Core Insights - Maxeon Solar Technologies reported a fiscal year 2024 revenue of $509 million, a decrease from $1,123 million in fiscal year 2023, reflecting ongoing challenges in the market [1][2][17] - The company is facing significant disruptions due to U.S. Customs & Border Protection's barring of its solar panels from U.S. import since July 2024, despite compliance with the Uyghur Forced Labor Prevention Act [2][3] - Maxeon is restructuring its operations to focus on the U.S. market, streamline operations, and enhance efficiency while also identifying domestic component vendors [2][3] Financial Performance - In Q4 2024, Maxeon reported shipments of 211 MW, compared to 199 MW in Q3 2024 and 653 MW in Q4 2023 [2][17] - The gross loss for Q4 2024 was $47.656 million, compared to a gross profit of $2.728 million in Q4 2023 [2][17] - The net loss attributable to stockholders for fiscal year 2024 was $614.3 million, significantly higher than the $275.8 million loss in fiscal year 2023 [2][17] Operational Changes - The company has divested its assets in the Philippines and businesses outside the U.S. to improve liquidity and support ongoing transformation [2][3] - Maxeon is committed to fiscal discipline, having restructured interest payments on outstanding debt to reduce cash burden [2][3] - The company will no longer report earnings quarterly and will instead file audited financial statements through Form 20-F with the SEC [2][3] Future Outlook - Maxeon is unable to provide financial guidance due to ongoing restructuring and market uncertainties [2][3] - The company is focused on establishing alternative manufacturing and supply chains to enhance resilience against market headwinds [2][3] - Strategic initiatives are being implemented to ensure the delivery of efficient and reliable solar energy products to residential, commercial, and utility-scale customers [2][3]

Core Insights - Maxeon Solar Technologies is focusing on transforming its business to better compete in the challenging solar market, prioritizing the delivery of high-quality solar panels and renewable energy solutions [2] - The company has strategically restructured its business to concentrate exclusively on the U.S. market, enhancing its growth potential through planned onshore manufacturing [3][4] Business Restructuring - Maxeon has sold non-U.S. assets, resulting in approximately $94 million in proceeds, which strengthens its focus on the U.S. residential, commercial, and utility power plant markets [4] - The company is establishing alternative manufacturing and supply chains that are not affected by recent tariffs and trade barriers [8] Regulatory Challenges - U.S. Customs & Border Protection (CBP) denied Maxeon's protests regarding detained shipments of its solar panels, citing insufficient documentation despite the company's compliance with the Uyghur Forced Labor Prevention Act [5][6] - Maxeon is considering contesting CBP's decision in the U.S. Court of International Trade to affirm its compliance with UFLPA [5] Manufacturing Initiatives - Maxeon is committed to developing its U.S.-based manufacturing facilities, including an Albuquerque facility that will utilize next-generation technology [10] - The company is actively identifying additional domestic component vendors to support its diversified manufacturing operations [10] Commitment to Compliance and ESG - Maxeon emphasizes its commitment to compliance with UFLPA and maintains high standards of transparency and ethical practices in its supply chain [9]

Company Overview - Maxeon Solar Technologies is headquartered in Singapore and has nearly 40 years of experience in solar energy, holding over 2,000 granted patents for innovative solar panels and energy solutions [1] - Tongwei Solar (Hefei) Co., Ltd., controlled by Tongwei Co., Ltd., has developed a high-efficiency module R&D team and established a competitive module business system, serving major power generation companies in China and over 40 countries [3] Recent Developments - Maxeon Solar Technologies and Tongwei Solar announced a Settlement and Cross-Licensing Agreement effective November 30, 2024, concerning shingled solar cell and module technology and related patent disputes [5]

Industry Overview - The urgent need to combat greenhouse gas emissions is accelerating the shift from fossil fuels to renewable energy, creating significant investment opportunities [1] - The U.S. solar industry is expected to experience substantial growth due to declining costs and supportive policies, particularly in solar panel manufacturing and rooftop installations [1] Market Projections - According to the U.S. Energy Information Administration (EIA), renewables are projected to account for 25% of U.S. electricity generation in 2025, up from an estimated 23% in 2024 [3] - Coal's share of electricity generation is expected to remain unchanged, while coal-fired power plant retirements are projected to rise to 11 GW in 2025 [4] Company Highlights Maxeon Solar Technologies Ltd. (MAXN) - Maxeon Solar focuses on advanced solar panels and energy solutions, aiming to combat global warming and enhance solar energy accessibility [5] - The company anticipates an 87% growth in its bottom line by 2025, supported by local manufacturing to strengthen market presence and supply chain reliability [5] Nextracker (NXT) - Nextracker specializes in solar trackers that optimize electricity generation by allowing solar panels to follow the sun [6] - The company is involved in major projects and has secured partnerships with key players, positioning it for growth in 2025 [6] First Solar (FSLR) - First Solar provides eco-efficient solar modules and has a strong market position with a contracted backlog of 73.3 GW and an opportunity pipeline of 81.4 GW [7] - The company is expected to see earnings growth of over 50% in 2025, driven by robust demand for its advanced thin-film photovoltaic technology [7]

Group 1 - The focus has shifted towards offshore drilling, supply industry, and shipping, including tankers, containers, and dry bulk [1] - The fuel cell industry is being monitored as it is still in its early stages of development [1] Group 2 - The individual has extensive experience in navigating significant market events such as the dotcom bubble, the aftermath of the World Trade Center attacks, and the subprime crisis [2] - The individual has a background in auditing with PricewaterhouseCoopers before transitioning to day trading [2]