Core Viewpoint - SolarMax Technology, Inc. reported a significant decline in financial performance for Q3 2024, with revenues dropping to $6.3 million from $14.3 million in Q3 2023, primarily due to external factors and a goodwill impairment related to its China segment [2][3]. Financial Performance - Revenue for Q3 2024 was $6.3 million, a decrease of 56% compared to $14.3 million in Q3 2023 [2]. - Gross profit fell to $1.3 million from $4.0 million in the same period last year [2]. - Total operating expenses reached $11.3 million, which included a $7.5 million goodwill impairment related to the China segment, compared to $3.1 million in Q3 2023 [2]. - The net loss for the quarter was $9.6 million, or $0.21 per share, contrasting with a net income of $1.5 million, or $0.04 per share, in Q3 2023 [2]. Management Commentary - The CEO highlighted that the third quarter's performance was influenced by external factors similar to those affecting the first half of the year, along with a significant goodwill impairment due to the China segment not generating revenue since 2022 [3]. - The surge in revenues in 2023 was attributed to a temporary increase in demand from residential customers before regulatory changes in California took effect in April 2023, leading to a substantial drop in 2024 revenues [3]. - Increased borrowing costs due to higher interest rates have also negatively impacted consumer investment in solar energy across the industry [3]. - The company is focused on executing its long-term growth strategy and expanding its commercial solar project portfolio, which is expected to contribute to revenue growth in the future [3]. Company Overview - SolarMax Technology, Inc., founded in 2008 and based in California, is a leader in the solar and renewable energy sector, aiming to make sustainable energy accessible and affordable [4]. - The company is working on strategic initiatives to scale commercial solar development services and expand its residential solar operations in the U.S. [4].

Financial Performance - Total revenues for the three months ended September 30, 2024, were $6,331,606, a decrease from $14,273,607 in the same period of 2023, representing a decline of approximately 55.7%[14] - Gross profit for the three months ended September 30, 2024, was $1,257,339, compared to $4,048,351 for the same period in 2023, indicating a decrease of about 68.9%[14] - Operating loss for the three months ended September 30, 2024, was $(10,027,306), compared to an operating income of $920,449 in the same period of 2023[14] - Net loss for the three months ended September 30, 2024, was $(9,622,730), compared to a net income of $1,465,363 for the same period in 2023[15] - The company reported a comprehensive loss of $(9,449,481) for the three months ended September 30, 2024, compared to a comprehensive income of $1,422,833 for the same period in 2023[15] - Net income loss for the nine months ended September 30, 2024, was $(31,058,741), compared to a net income of $349,883 for the same period in 2023[21] - Total revenues for the nine months ended September 30, 2024, were $16,549,981, down 60.5% from $41,895,547 in 2023[99] - Sales from solar energy and battery storage systems for the three months ended September 30, 2024, were $5,131,970, a decrease of 61.5% compared to $13,325,437 in 2023[99] Assets and Liabilities - Total current assets increased to $24,169,234 as of September 30, 2024, from $19,921,585 as of December 31, 2023, reflecting an increase of approximately 21.2%[11] - Total liabilities decreased to $53,983,195 as of September 30, 2024, from $64,543,029 as of December 31, 2023, representing a reduction of about 16.4%[12] - Cash and cash equivalents decreased to $871,415 as of September 30, 2024, from $2,539,312 as of December 31, 2023, a decline of approximately 65.7%[11] - Total stockholders' deficit improved to $(10,937,624) as of September 30, 2024, from $(15,887,828) as of December 31, 2023[13] - The accumulated deficit increased to $(99,682,710) as of September 30, 2024, compared to $(68,708,872) at the end of September 2023[20] - The company has a working capital deficit of approximately $13.6 million and an accumulated deficit of approximately $99.7 million as of September 30, 2024[36] Cash Flow and Investments - Cash used in operating activities for the nine months ended September 30, 2024, was $(7,818,595), a significant increase from $(389,194) in the same period of 2023[21] - The company reported a net cash used in investing activities of $(7,691,905) for the period[22] - The net cash provided by financing activities was $13,855,534, primarily from the initial public offering which generated net proceeds of approximately $18.6 million[22][28] - As of September 30, 2024, the company had a cash balance of $1,151,868, down from $4,191,670 at the beginning of the year[23] Goodwill and Impairments - The company experienced a goodwill impairment of $7,463,775 during the reporting period[21] - The company recognized a goodwill impairment charge of $7.5 million related to its China segment due to the absence of revenue generation since 2022[26] - The company recognized a goodwill impairment loss of $7.5 million for the nine months ended September 30, 2024, due to economic downturns in China, with no impairment loss recognized for the same period in 2023[53] Stock and Compensation - Total stock-based compensation for the period was $18,536,184, reflecting an increase in expenses related to stock options and restricted stock[21] - The company recognized a compensation cost of $18.5 million related to performance-based stock options due to the completion of its initial public offering[191] - The number of outstanding stock options as of September 30, 2024, was 6,197,741, with a weighted average exercise price of $4.93[189] Revenue Recognition - Revenue is recognized based on the transfer of control over products or services, with EPC services revenue recognized over time as performance obligations are satisfied[78][79] - The Company uses cost-based input methods for revenue recognition, reflecting actual costs incurred relative to total estimated costs for contract completion[81] - For solar energy and battery storage system sales, revenue is recognized over time as the Company fulfills its performance obligations[88] - The Company recognizes revenue from LED product sales upon delivery, with payment generally due upon delivery or within 30 days[93][94] Market and Operational Challenges - The implementation of NEM 3.0 resulted in a 75% reduction in export rates, negatively affecting the return on investment for solar customers[207] - Approximately 25% of the residential solar system design and installation team was laid off in January 2024 due to decreased demand following NEM 3.0[208] - The company has significant doubt about its ability to continue as a going concern due to recurring operating losses and negative cash flows[35][38] Segment Information - The company operates in two segments: U.S. and PRC, with separate financial information evaluated by the executive team for resource allocation[111] - The U.S. segment reported a loss of $23,645,850 for the nine months ended September 30, 2024, compared to a loss of $488,464 in the same period of 2023[193] Tax and Compliance - The effective income tax rate for the nine months ended September 30, 2024, was 0.2%, significantly lower than 29.8% for the same period in 2023[194] - The company faces noncompliance with Nasdaq listing standards, including a minimum market value of $50 million and a minimum bid price of $1 per share[209]

Core Insights - SolarMax Technology, Inc. (Nasdaq: SMXT) has announced a significant solar project involving a 4.17 MW solar installation, which includes a 2.0 MW solar array [1] Group 1: Project Details - The solar project is part of SolarMax's strategy to expand its solar energy offerings and is expected to contribute to the company's growth in renewable energy [1] - The project is backed by a Power Purchase Agreement (PPA), which is crucial for securing financing and ensuring revenue stability [1] Group 2: Market Impact - SolarMax anticipates that the solar project will help meet the increasing demand for renewable energy, with projections indicating a rise in solar energy generation from 163 billion kWh in 2023 to 286 billion kWh by 2025 [1] - The company aims to enhance its market position in the solar energy sector, leveraging its experience and established infrastructure [2]

Company Overview - SolarMax Technology, Inc. is an integrated solar energy company based in California, founded in 2008, focusing on making sustainable energy accessible and affordable [7] - The company has established a strong presence in California and began operations in China in 2016, aiming for robust growth through strategic initiatives in commercial solar development and LED lighting solutions [7] Project Details - SolarMax signed a non-binding term sheet for a significant commercial solar project in California, specifically a major mall in the San Jose area [1] - The project will include the development and management of a 4.17 megawatt (MW) photovoltaic solar power plant and a 2.0 MW energy storage system, along with the replacement of the mall's roof to support the new solar infrastructure [2] - The project is contingent upon the negotiation and execution of a definitive agreement with the mall owner, securing financing, and establishing agreements for the sale of generated electricity [4] Strategic Growth Plans - The CEO of SolarMax emphasized that expanding commercial solar development services in the U.S. is a key component of the company's strategic growth plans [3] - The company aims to leverage its experience in large-scale solar projects to establish a significant presence in the growing U.S. solar market, with this project representing an important milestone [3] Market Context - Solar energy is the fastest-growing source of renewable energy in the U.S., which is currently the second-largest photovoltaic (PV) market globally [5] - The U.S. Energy Information Administration forecasts that solar power generation in the U.S. will grow by 75%, from 163 billion kilowatt-hours (kWh) in 2023 to 286 billion kWh in 2025 [5] Development Services - SolarMax is positioning itself as a go-to provider for U.S. commercial solar projects by offering comprehensive development services, including advanced technology and customized solutions [6] - The company's commercial solar development offerings focus on a client-centric approach to project management, aiming to deliver projects on time and within budget [6]

Financial Results Announcement - SolarMax Technology, Inc. announced its financial results for the quarter ended June 30, 2024[4]. - The press release detailing the financial results was issued on August 14, 2024[4]. - The financial results include key metrics that will be detailed in Exhibit 99.1[4]. Company Classification - The company is classified as an emerging growth company[3]. Regulatory Information - The report is not deemed "filed" under the Securities Exchange Act of 1934[6]. Leadership - David Hsu serves as the Chief Executive Officer of SolarMax Technology, Inc.[7].

RIVERSIDE, Calif., Aug. 14, 2024 (GLOBE NEWSWIRE) -- SolarMax Technology, Inc. (Nasdaq SMXT) ("SolarMax" or the "Company"), an integrated solar energy company, today reported financial results for the quarter ended June 30, 2024. Second Quarter Highlights Revenue: $4.5 million, compared to $14.8 million in Q2 2023. Gross profit: $0.6 million, compared to $2.1 million in Q2 2023. Total operating expense: $3.0 million, compared to $3.0 million in Q2 2023. Net loss: $2.2 million ($0.05 per share), compared to ...

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 June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 001-41959 | --- | --- | --- | |---------------------------------------------------------|------------------------------------------------------------------------------ ...

RIVERSIDE, Calif., Aug. 6, 2024 /PRNewswire/ -- SolarMax Technology, Inc. (Nasdaq: SMXT) ("SolarMax" or the "Company"), an integrated renewable energy company, is pleased to announce its plan to expand its business in the U.S. market, dedicated to leading the revolution with innovative smart solar systems. The company has signed a non-binding memorandum of understanding for its first major commercial solar installation project in the U.S. The proposed project, which is located in Las Vegas, would include a ...

EX-99.1 2 solarmax_ex991.htm PRESS RELEASE EXHIBIT 99.1 SolarMax Technology, Inc. Reports First Quarter 2024 Financial Results RIVERSIDE, CA – May 16, 2024 (GLOBE NEWSWIRE) – SolarMax Technology, Inc. (Nasdaq SMXT) ("SolarMax" or the "Company"), an integrated solar energy company, today reported financial results for the quarter ended March 31, 2024. First Quarter Highlights David Hsu, CEO of SolarMax, stated, "Our year-over-year comparisons were impacted by two key factors. First, the exceptional revenue w ...

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 March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from March 1, 2023 to March 31, 2024 Commission file number 001-41959 _________________________ Solarmax Technology, Inc. (Exact name of ...