Financial Data and Key Metrics Changes - The company reported a third quarter revenue of $6.4 million for the Critical Power Business segment, a 130% increase compared to $2.8 million in the same quarter last year [26] - Gross profit for the critical power segment was $1.5 million, resulting in a gross margin of approximately 24%, up from 16% in the prior year [27] - Operating income for the critical power segment was $211,000, a significant improvement from an operating loss of $621,000 in the same quarter last year [29] - The company updated its revenue guidance for 2024 to between $21 million and $23 million from continuing operations [30] Business Line Data and Key Metrics Changes - The e-Boost business generated approximately $3 million in revenue during the third quarter from a contract in Canada, compared to only $1 million for all of 2023 [26][27] - The total backlog for the critical power segment, including e-Boost, was approximately $24 million, a 45% increase compared to year-end 2023 [10] Market Data and Key Metrics Changes - The company expects to generate approximately $17 million in revenue from the sale and rental of equipment and over $10 million from service and maintenance in 2025 [16] - The backlog is primarily driven by school bus-related orders and municipal electric fleet orders [52] Company Strategy and Development Direction - The company plans to launch a home e-Boost product in early 2025, targeting residential and smaller commercial markets [17] - The company is exploring strategic acquisitions of businesses with at least $25 million in revenue that complement its current e-Boost platform [22] - The company aims to increase its rental revenue, budgeting $2.5 million for 2025 and targeting over $4 million in 2026 [39] Management's Comments on Operating Environment and Future Outlook - Management highlighted strong demand from municipalities and utilities for electrification of vehicle fleets, including electric buses and sanitation vehicles [36][38] - The company is confident in its ability to meet its revenue guidance for 2025, projecting revenue between $27 million and $29 million [15][30] Other Important Information - The company declared a one-time special cash dividend of $1.50 per share, payable on January 7, 2025 [8] - The company received approximately $48 million in cash from the sale of its Pioneer custom electrical products business unit [6][24] Q&A Session Summary Question: Demand drivers for 2025 - Management noted that demand is driven by repeat orders and new customer wins, particularly from government and municipal sectors [36] Question: Business model preference between rental and sales - Management expressed a preference for increasing rental agreements, especially with credit-worthy customers, while acknowledging that many municipalities prefer outright purchases [39] Question: Production capacity and expansion plans - Management indicated that they are working with subcontractors to expand capacity without significant fixed costs and do not plan to expand their current facilities [42][43] Question: Gross margins on recent orders - Management confirmed that the recent $3 million order was a sale with gross margins around 35%, which exceeded expectations due to effective subcontractor collaboration [48][49] Question: Backlog composition and customer diversity - Management stated that the backlog is primarily composed of school bus-related orders and municipal fleet orders, with contracts typically ranging from one to three years [51][52] Question: M&A targets and strategy - Management is open to potential acquisition targets that are compelling and accretive, but there is no rush to pursue them [55] Question: SG&A outlook - Management expects SG&A expenses to be around $1 million for the critical power business, with corporate overhead expected to be approximately 12% of revenue [60]

Revenue Performance - For the three months ended September 30, 2024, consolidated revenues were $10,911, a decrease of 4.7% from $11,453 for the same period in 2023[101] - For the three months ended September 30, 2024, consolidated revenue decreased by $542, or 4.7%, to $10,911, down from $11,453 during the same period in 2023[105] - For the nine months ended September 30, 2024, consolidated revenue decreased by $7,450, or 22.4%, to $25,841, down from $33,291 during the same period in 2023[106] - Revenue from the Electrical Infrastructure segment decreased by $4,165, or 48.1%, to $4,495 for the three months ended September 30, 2024[107] - Revenue from the Electrical Infrastructure segment decreased by $12,130, or 48.8%, to $12,715 for the nine months ended September 30, 2024[108] - Revenue from the Critical Power Solutions segment increased by $3,623, or 129.8%, to $6,416 for the three months ended September 30, 2024[109] - Revenue from equipment sales in the Critical Power segment increased by $3,941, or 157.2%, to $6,448 for the nine months ended September 30, 2024[110] Profitability and Loss - Gross profit for the three months ended September 30, 2024, was $2,066, down from $3,698 for the same period in 2023, reflecting a gross margin of 18.9%[101] - Consolidated gross margin decreased to 18.9% for the three months ended September 30, 2024, down from 32.3% during the same period in 2023[112] - For the nine months ended September 30, 2024, gross margin decreased to 17.2%, down from 31.3% during the same period in 2023[113] - Operating loss from continuing operations for the three months ended September 30, 2024, was $(1,097), compared to an operating income of $940 for the same period in 2023[101] - The company reported a net loss of $(1,121) for the three months ended September 30, 2024, compared to a net income of $1,011 for the same period in 2023[101] - The company generated a net loss of $1,121 for the three months ended September 30, 2024, compared to net income of $1,011 for the same period in 2023, resulting in a net loss per share of $0.10[134] Expenses - Selling, general and administrative expenses increased by approximately $155, or 5.7%, to $2,881 for the three months ended September 30, 2024[120] - Selling, general and administrative expenses as a percentage of consolidated revenue increased to 31.6% for the nine months ended September 30, 2024, compared to 23.5% in the same period in 2023[121] - Research and development expenses for the three months ended September 30, 2024, were $256, compared to $0 for the same period in 2023[101] - Consolidated depreciation and amortization expense decreased by $6, or 18.8%, to $26 for the three months ended September 30, 2024, compared to $32 for the same period in 2023[122] Order Backlog - The total order backlog as of September 30, 2024, was $66,150, a slight decrease from $66,921 as of June 30, 2024[103] - The backlog for Electrical Infrastructure was $42,112 as of September 30, 2024, up from $39,670 as of June 30, 2024[103] - The company anticipates that approximately $13,236, or 20% of the total backlog, will come from E-Bloc power systems and related equipment[103] Cash Flow and Financing - Cash used in operating activities was $4,118 during the nine months ended September 30, 2024, compared to $228 for the same period in 2023, reflecting increased net loss and working capital fluctuations[139] - Cash provided by financing activities was $4,893 during the nine months ended September 30, 2024, compared to cash used of $142 in the same period in 2023, mainly due to stock sales under the ATM Program[141] - As of September 30, 2024, working capital was $9,103, including $3,080 in cash, down from $9,421 as of December 31, 2023[142] - The company expects to meet cash needs through working capital and operating cash flows, with ongoing product development and promotional activities anticipated[145] - The company sold an aggregate of 919,557 shares of common stock for approximately $5,147 under the ATM Program during the nine months ended September 30, 2024[136] Segment Performance - Operating loss from the Electrical Infrastructure segment decreased by $3,047 during the three months ended September 30, 2024, primarily due to decreased sales and increased expenses[124] - Operating income from the Critical Power segment increased by $832 during the three months ended September 30, 2024, driven by higher sales of e-Boost equipment[126] Other Information - The company completed the sale of its Electrical Infrastructure segment on October 29, 2024, for total consideration of $50,000, including $48,000 in cash[92][93] - The company had no off-balance sheet transactions or obligations that could materially affect its financial condition as of September 30, 2024[146]

Summary of Pioneer Power Solutions, Inc. Conference Call Company Overview - **Company**: Pioneer Power Solutions, Inc. (NASDAQ:PPSI) - **Date of Call**: October 30, 2024 - **Key Participants**: Nathan Mazurek (CEO), Walter Michalec (CFO), Geo Murickan (President and CEO of Pioneer Power Mobility) [6][3] Key Industry and Company Insights Sale of PCEP Business Unit - Pioneer sold its Pioneer Custom Electrical Products Corp. (PCEP) business to Mill Point Capital for approximately **$50 million** in cash and the assumption of certain liabilities [6][10] - The sale allows Pioneer to focus on its eMobility business, which is expected to have a higher growth potential compared to the E-Bloc business [9][8] - The decision to sell was influenced by the need to avoid shareholder dilution and to finance growth without external debt [9][41] Financial Position Post-Sale - Pioneer has zero debt and has self-funded all R&D and capital expenditures since August 2019 [12] - Following the sale, Pioneer has over **$50 million** in cash on hand [12] e-Boost Business Growth - The e-Boost platform has seen significant growth, with over **19,000 unique vehicle charging sessions** and more than **600 megawatts** of sustainable off-grid power delivered [16] - The Critical Power division is projected to generate over **$20 million** in revenue for the year [16] Product Innovations - Introduction of various e-Boost products, including: - **e-Boost Mini**: Skid-based fast charging solution - **e-Boost Mobile**: Trailer-based fast charging solution - **e-Boost GOAT**: Truck-integrated DC fast charging solution - **e-Boost POD**: High-capacity charging system in a shipping container [14][20] - Launch of **HOMe-Boost**, a residential market-focused solution that operates on existing natural gas lines, expected to enter the market in early 2025 [17][19] Market Demand and Backlog - The backlog for the Critical Power division increased to **$24 million**, a **45%** increase from the previous period [22] - Demand drivers include: - Electrification of transit bus fleets - Adoption by municipalities and utilities for electrification of service vehicles [27][28] M&A Strategy - The company is exploring M&A opportunities to enhance the e-Boost segment, targeting businesses with at least **$25 million** in annual revenue that are not financially struggling [24][25] Competitive Landscape - Pioneer has established a competitive edge through R&D and customized solutions, differentiating itself from smaller startups in the market [50][51] - The company has integrated advanced monitoring and servicing technology into its products, providing added value to customers [52] Future Outlook - The company anticipates strong demand growth, with potential annual growth rates of **20-25%** for the e-Boost business [43] - Plans to provide more detailed financial guidance for 2025 in the upcoming earnings call [67] Additional Important Points - The company has been proactive in addressing market needs, including the introduction of mobile flexible power solutions for battery energy storage systems and hydrogen fueling stations [20] - The management emphasized the importance of maintaining profitability while pursuing growth [43][44] This summary encapsulates the key points discussed during the conference call, highlighting the strategic direction and financial health of Pioneer Power Solutions, Inc.

Revenue Performance - For the three months ended June 30, 2024, consolidated revenue decreased by $5,942, or 48.4%, to $6,340, down from $12,282 during the same period in 2023, primarily due to a decrease in sales of equipment from the Electrical Infrastructure segment [66]. - Electrical Infrastructure segment revenue for the three months ended June 30, 2024, was $2,945, a decrease of $6,431 or 68.6% compared to $9,376 in the same period of 2023 [68]. - Critical Power Solutions segment revenue increased by $489, or 16.8%, to $3,395 for the three months ended June 30, 2024, compared to $2,906 in the same period of 2023 [68]. - For the six months ended June 30, 2024, consolidated revenue decreased by $6,908 or 31.6%, to $14,930, down from $21,838 during the same period in 2023, primarily due to a decrease in equipment sales from the Electrical Infrastructure segment [69]. - Revenue from the Critical Power segment increased by $1,057 or 18.7%, to $6,710 for the six months ended June 30, 2024, up from $5,653 during the same period in 2023, driven by increased sales of e-Boost equipment and service sales [70]. Profitability and Expenses - Gross profit for the three months ended June 30, 2024, was $653, down from $3,878 in the same period of 2023 [66]. - Consolidated gross profit for the three months ended June 30, 2024, was $653, a decrease of $3,225 or 83.2% compared to $3,878 in the same period in 2023 [72]. - The consolidated gross margin decreased to 10.3% for the three months ended June 30, 2024, down from 31.6% during the same period in 2023 [72]. - Total operating expenses for the three months ended June 30, 2024, were $2,953, compared to $3,089 in the same period of 2023 [66]. - Selling, general and administrative expenses for the three months ended June 30, 2024, decreased by $370 or 12.1%, to $2,689, compared to $3,059 in the same period in 2023 [76]. - For the six months ended June 30, 2024, consolidated selling, general and administrative expenses increased by $205 or 4.0%, to $5,295, compared to $5,090 during the same period in 2023 [77]. Net Income and Loss - The net loss for the three months ended June 30, 2024, was $(2,283), compared to net income of $848 in the same period of 2023 [66]. - The company generated a net loss of $3,318 during the six months ended June 30, 2024, compared to net income of $1,590 in the same period of 2023 [82]. Backlog and Future Outlook - As of June 30, 2024, total backlog was $66,921, an increase from $45,911 as of March 31, 2024 [67]. - Backlog from E-Bloc power systems and related equipment was approximately $12,523, representing 19% of the total backlog as of June 30, 2024 [67]. - The company anticipates potential risks including fluctuations in sales, competition, and raw material prices that could impact future performance [58]. Segment Performance - Operating income from the Electrical Infrastructure segment decreased by $3,540 during the three months ended June 30, 2024, primarily due to decreased sales and increased expenses [78]. - The gross margin for the Electrical Infrastructure segment decreased to 0.4% for the three months ended June 30, 2024, down from 36.2% in the same period in 2023 [73]. - The gross margin for the Critical Power Solutions segment increased to 18.9% for the three months ended June 30, 2024, up from 16.7% in the same period in 2023 [73]. - Operating income from the Electrical Infrastructure segment decreased by $4,783 during the six months ended June 30, 2024, compared to the same period in 2023 [79]. - Operating loss from the Critical Power segment increased by $228 during the six months ended June 30, 2024, primarily due to increased research and development costs [79]. Cash Flow and Working Capital - Cash used in operating activities was $1,379 during the six months ended June 30, 2024, compared to cash provided of $366 in the same period of 2023 [85]. - Cash provided by financing activities was $4,923 during the six months ended June 30, 2024, compared to cash used of $228 in the same period of 2023 [86]. - As of June 30, 2024, the company had working capital of $11,140, including $6,512 of cash on hand, compared to $9,421 as of December 31, 2023 [86]. - The company had $614 of additions to property and equipment during the six months ended June 30, 2024, down from $810 in the same period of 2023 [89]. Legal and Compliance Issues - The company faced a legal complaint filed by Terrence and Kay Mimick on June 15, 2023, alleging negligent driving and seeking special damages related to injuries sustained in a car accident [99]. - An amended complaint was filed on July 7, 2023, which named Titan Energy Systems, Inc. as a defendant instead of Pioneer Critical Power, Inc. [99]. - A mediation held on October 6, 2023, did not result in a settlement, but a subsequent mediation in June 2024 led to a settlement of all claims, with the case dismissed on July 23, 2024 [99]. - As of the current date, the company is not aware of any other legal proceedings that could materially affect its business or financial condition [100]. - The company reported material weaknesses in internal control over financial reporting as of June 30, 2024, including issues with revenue recognition and inventory accounting [92]. - The company restated its consolidated financial statements for the year ended December 31, 2022, due to errors in revenue recognition related to over-time contracts [92]. - The company is implementing enhancements to its internal controls, including engaging external parties and updating accounting policies [94]. - The company acknowledges that future lawsuits or claims could adversely affect its financial condition and liquidity [100].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Title of each class Trading symbol(s) Name of each exchange on which registered Common Stock, par value $0.001 per share PPSI Nasdaq Capital Market FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 001-35212 PIONEER ...

☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 001-35212 Critical Accounting Estimates FORM 10-K ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Delaware 27-1347616 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) Securities registered pursuant to Section 12(g) of the Act: None To date, no cybersecurity incident (or aggregation of incidents) or cyberse ...

Pioneer Power Solutions, Inc. (NASDAQ:PPSI) Q4 2023 Earnings Conference Call April 1, 2024 5:00 PM ET Company Participants Brett Maas - Hayden Investor Relations Nathan Mazurek - Chairman and Chief Executive Officer Walter Michalec - Chief Financial Officer Conference Call Participants Robert Brown - Lake Street Capital Markets, LLC Amit Dayal - H. C. Wainwright & Co. Andrew Parker - Horizon Kinetics LLC Operator Good afternoon, everyone. Welcome to today's Pioneer Power 2023 Fourth Quarter and Year-End Fin ...

Revenue Performance - Revenue for 2023 was $40.8 million, a 51.1% increase from $27.0 million in 2022[4]. - The company expects revenue of $52 to $54 million for 2024, indicating approximately 30% year-over-year growth, with EPS guidance of $0.31 to $0.34[15]. - Revenue from the Electrical Infrastructure segment increased by 71% in 2023, while revenue from the Critical Power Solutions segment increased by 16%[11]. - Consolidated revenue for Q4 2023 was $7.7 million, a 19% decrease from $9.5 million in Q4 2022, primarily due to order timing shifts[7]. Profitability - Gross profit reached $10.4 million, with a gross margin of 25.5%, compared to $4.6 million and 17.1% in 2022, representing a 125% increase in gross profit and an 840 basis point increase in margin[4]. - Gross profit for Q4 2023 was $1.8 million, or 22.7% of revenue, down from $2.8 million, or 29% of revenue in Q4 2022[8]. - Net income for 2023 was $138,000, or $0.01 per share, compared to a net loss of $3.6 million, or $(0.37) per share in 2022, an improvement of $3.7 million[4]. Backlog and Deliveries - Total backlog increased to $45.9 million as of December 31, 2023, up 36% sequentially from $33.6 million as of September 30, 2023[4]. - The company delivered $9 million of E-Bloc products to a major automaker and $6 million to three California water districts in 2023[6]. Tax and Losses - The company had $14.6 million of federal net operating loss carryforwards as of December 31, 2023[4].

Pioneer Power Solutions, Inc. (NASDAQ:PPSI) Q3 2023 Earnings Conference Call November 15, 2023 9:00 AM ET Company Participants Brett Maas - Hayden IR Nathan Mazurek - President, CEO & Chairman Walter Michalec - CFO, Treasurer & Secretary Geo Murickan - President of Pioneer's eMobility business Conference Call Participants Amit Dayal - H.C. Wainwright Albert Jones - Jones Capital Management Operator Greetings and welcome to the Pioneer’s 2023 Third Quarter Financial Results. [Operator Instructions]. As a rem ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 001-35212 PIONEER POWER SOLUTIONS, INC. (Exact name of registrant as specified in its charter) Delaware 27-1347616 (State or other jurisdiction of incorporation ...