Part I [Business](index=7&type=section&id=Item%201.%20Business) SunPower provides integrated solar, storage, and home energy solutions in the U.S. and Canada, focusing on residential markets after strategic acquisitions and divestitures - SunPower is a leading solar technology and energy services provider in the U.S. and Canada, offering integrated solar, storage, and home energy solutions through a network of dealers and in-house sales teams[33](index=33&type=chunk) - On October 4, 2021, the company acquired Blue Raven Solar to expand its geographic footprint in the U.S. residential market for up to **$165 million**, including a **$20 million** contingent payment[37](index=37&type=chunk)[39](index=39&type=chunk) - In Q4 2021, SunPower launched SunPower Financial™, an in-house finance company, to provide a broader range of financing options and increase access to solar for more homeowners[40](index=40&type=chunk) - On February 6, 2022, SunPower signed an agreement to sell its Commercial and Industrial (C&I) Solutions business to a subsidiary of TotalEnergies SE for approximately **$190 million**, plus up to **$60 million** in contingent consideration, to sharpen its focus on the residential market[41](index=41&type=chunk) - The company operates through two main segments: Residential, Light Commercial (RLC) and Commercial & Industrial (C&I) Solutions, sourcing solar panels from Maxeon Solar under a master supply agreement[42](index=42&type=chunk)[58](index=58&type=chunk) - As of January 2, 2022, SunPower had approximately **3,660** full-time employees worldwide, with about **2,510** located in the United States[96](index=96&type=chunk) [Risk Factors](index=19&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant operational and financial risks, including COVID-19 impacts, supply chain dependencies, product quality issues, reliance on government incentives, substantial debt, and control by its majority shareholder - The COVID-19 pandemic has adversely affected business operations, supply chains, and customer demand, and its future impact remains unpredictable[108](index=108&type=chunk)[109](index=109&type=chunk) - The business is dependent on a limited number of suppliers, including an exclusive supply agreement with the 2020 spin-off Maxeon Solar for certain critical solar cells and panels, exposing the company to supply chain risks[186](index=186&type=chunk)[187](index=187&type=chunk) - Growth is dependent on the availability of third-party financing for customers and projects, with the launch of SunPower Financial introducing new risks related to consumer underwriting and potential default rates[136](index=136&type=chunk)[143](index=143&type=chunk) - The reduction, modification, or elimination of government incentives like the solar investment tax credit (ITC), or changes to regulations like net energy metering, could significantly reduce demand and harm financial results[156](index=156&type=chunk)[158](index=158&type=chunk) - The company has a significant amount of debt outstanding (**$536.7 million** as of Jan 2, 2022), which could make it difficult to meet payment obligations and fund operations[180](index=180&type=chunk) - Product quality issues, such as a recently identified third-party connector defect, can lead to significant warranty costs, reputational harm, and decreased sales, with the company recording a **$26.5 million** charge for this issue[195](index=195&type=chunk)[196](index=196&type=chunk) - TotalEnergies SE's majority ownership (approx. **51%**) gives it significant control over the company's affairs, which may adversely affect the stock's liquidity and limit the influence of other stockholders[266](index=266&type=chunk)[268](index=268&type=chunk) [Unresolved Staff Comments](index=53&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company has no unresolved staff comments - None[313](index=313&type=chunk) [Properties](index=53&type=section&id=Item%202.%20Properties) The company's principal properties are leased facilities, including its California headquarters, global support offices, and a former Oregon manufacturing site Principal Leased Properties | Facility | Location | Approx. Square Footage | | :--- | :--- | :--- | | Corporate headquarters | California, U.S. | 61,000 | | Global support offices | California, U.S. | 163,000 | | Global support offices | Texas, U.S. | 69,000 | | Global support offices | Philippines | 129,000 | | Global support offices | Utah, U.S. | 43,000 | | Former manufacturing facility | Oregon, U.S. | 212,000 | [Legal Proceedings](index=53&type=section&id=Item%203.%20Legal%20Proceedings) Information on legal proceedings is incorporated by reference from Note 9 of the consolidated financial statements - The company is party to various litigation matters, settling an ongoing litigation matter in Q4 2021 and receiving proceeds of **$14.8 million**[619](index=619&type=chunk) - Subsequent to the fiscal year end, on February 16, 2022, a securities class action lawsuit was filed against the company related to the disclosure of a cracking issue in certain factory-installed connectors[736](index=736&type=chunk) [Mine Safety Disclosures](index=53&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[317](index=317&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=54&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) SunPower's common stock trades on Nasdaq under "SPWR"; the company has never paid cash dividends and repurchased shares in Q4 2021 for tax withholding - The company's common stock is listed on the Nasdaq Global Select Market under the trading symbol "SPWR"[318](index=318&type=chunk) - SunPower has never declared or paid a cash dividend on its common stock and does not intend to in the foreseeable future[319](index=319&type=chunk) Issuer Purchases of Equity Securities (Q4 2021) | Period | Total Shares Purchased | Average Price Paid Per Share ($) | | :--- | :--- | :--- | | Oct 4 - Oct 31, 2021 | 59,834 | $26.69 | | Nov 1 - Nov 28, 2021 | 20,957 | $32.59 | | Nov 29 - Jan 2, 2022 | 8,994 | $24.44 | | **Total** | **89,785** | | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=54&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In fiscal 2021, total revenues grew 18% to **$1.32 billion**, driven by RLC segment growth, while the company reported a **net loss of $38.0 million** and faces a **$425.0 million** convertible debenture maturity in January 2023 [Results of Operations](index=56&type=section&id=Results%20of%20Operations) Fiscal 2021 saw **18% revenue growth** to **$1.32 billion**, driven by the RLC segment, but increased SG&A and the absence of a prior-year gain resulted in a **$38.0 million net loss** from continuing operations Fiscal Year 2021 vs. 2020 Financial Performance | Metric | FY 2021 (ended Jan 2, 2022) (Millions) | FY 2020 (ended Jan 3, 2021) (Millions) | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $1,323.5 | $1,124.8 | 18% | | Gross Profit | $221.6 | $167.1 | 33% | | Gross Margin | 17% | 15% | +2 p.p. | | Operating Loss | ($27.5) | ($6.0) | N/A | | Net (Loss) Income from Continuing Operations | ($38.0) | $597.0 | N/A | Revenue by Segment (FY 2021 vs. FY 2020) | Segment | FY 2021 Revenue (Millions) | FY 2020 Revenue (Millions) | % Change | | :--- | :--- | :--- | :--- | | Residential, Light Commercial | $1,121.2 | $848.1 | 32% | | Commercial and Industrial Solutions | $191.5 | $254.8 | (25)% | | Other | $10.2 | $65.6 | (84)% | - The **32%** revenue growth in the RLC segment was driven by higher volumes in residential cash, loan, and new home channels, and the consolidation of the newly acquired Blue Raven business[334](index=334&type=chunk) - SG&A expenses increased by **$67.6 million** (**41%**) in fiscal 2021, primarily due to the consolidation of Blue Raven, transaction costs, increased labor costs, and accelerated vesting of stock units for the former CEO[347](index=347&type=chunk) - Other income decreased by **$669.6 million**, mainly because fiscal 2020 included a **$692.1 million** gain on an equity investment, compared to a much smaller **$21.7 million** gain in fiscal 2021[354](index=354&type=chunk) [Liquidity and Capital Resources](index=64&type=section&id=Liquidity%20and%20Capital%20Resources) As of January 2, 2022, the company held **$127.1 million** in cash, with **$44.5 million** net cash used in operations, and plans to address its **$425.0 million** convertible debenture maturity in January 2023 through asset sales and operations Cash Flow Summary (Fiscal Year Ended) | Cash Flow Activity | Jan 2, 2022 (Millions) | Jan 3, 2021 (Millions) | | :--- | :--- | :--- | | Net cash used in operating activities | ($44.5) | ($187.4) | | Net cash provided by investing activities | $54.3 | $129.2 | | Net cash used in financing activities | ($108.0) | ($153.9) | - The company ended fiscal 2021 with **$127.1 million** in unrestricted cash and cash equivalents, down from **$232.8 million** at the end of fiscal 2020[389](index=389&type=chunk) - SunPower must address the maturity of its **$425.0 million** **4.00%** senior convertible debentures due January 15, 2023, planning to use proceeds from the sale of Enphase stock, cash from operations, and the pending sale of the C&I Solutions business to satisfy this obligation[391](index=391&type=chunk) Material Contractual Obligations as of Jan 2, 2022 | Obligation Type | Total (Millions) | Due in 2022 (Millions) | Due in 2023-2024 (Millions) | | :--- | :--- | :--- | :--- | | Convertible debt, including interest | $442.7 | $17.0 | $425.7 | | Other debt, including interest | $116.3 | $115.8 | $0.2 | | Operating lease commitments | $64.4 | $15.8 | $24.2 | | Supply agreement commitments | $169.0 | $128.1 | $34.9 | | **Total** | **$865.9** | **$350.2** | **$484.9** | [Quantitative and Qualitative Disclosures About Market Risk](index=67&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks including credit, interest rate, and equity price fluctuations, particularly concerning its Enphase investment and convertible debentures - The company is exposed to interest rate risk, as higher rates could make it more difficult for customers to finance solar systems, potentially reducing demand[398](index=398&type=chunk) - SunPower holds an equity investment in Enphase Energy, Inc. (ENPH), recognizing a gain of **$21.0 million** from this investment in fiscal 2021 and selling **one million shares** for **$177.8 million** in proceeds, retaining **2.5 million shares** as of January 2, 2022[399](index=399&type=chunk) - The fair market value of the company's **$425.0 million** in outstanding convertible debentures is subject to interest rate and market price risk, particularly changes in SunPower's common stock price[400](index=400&type=chunk) [Financial Statements and Supplementary Data](index=68&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's audited consolidated financial statements for fiscal year 2021, including balance sheets, statements of operations, comprehensive income, equity, cash flows, and accompanying notes Consolidated Balance Sheet Highlights | (In thousands) | Jan 2, 2022 | Jan 3, 2021 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $127,130 | $232,765 | | Total current assets | $1,073,466 | $790,315 | | Total assets | $1,554,806 | $1,646,482 | | **Liabilities & Equity** | | | | Total current liabilities | $509,596 | $529,731 | | Total liabilities | $1,164,782 | $1,239,996 | | Total stockholders' equity | $388,389 | $404,167 | | Total liabilities and equity | $1,554,806 | $1,646,482 | Consolidated Statement of Operations Highlights | (In thousands, except per share data) | FY 2021 | FY 2020 | | :--- | :--- | :--- | | Total revenues | $1,323,493 | $1,124,829 | | Gross profit | $221,607 | $167,127 | | Operating (loss) | ($27,462) | ($6,012) | | Net (loss) income from continuing operations | ($38,042) | $597,020 | | Net (loss) income attributable to stockholders | ($37,358) | $475,048 | | Diluted EPS | ($0.22) | $2.48 | [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=134&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants regarding accounting and financial disclosure - None[737](index=737&type=chunk) [Controls and Procedures](index=134&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of January 2, 2022, excluding the recently acquired Blue Raven from the latter's evaluation - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of January 2, 2022[739](index=739&type=chunk) - Management concluded that internal control over financial reporting was effective as of January 2, 2022, though the evaluation excluded Blue Raven, which was acquired on October 4, 2021[741](index=741&type=chunk)[742](index=742&type=chunk) [Other Information](index=135&type=section&id=Item%209B.%20Other%20Information) The company reports no other information - None[743](index=743&type=chunk) [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=135&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to the company - Not applicable[743](index=743&type=chunk) Part III [Directors, Executive Officers, Corporate Governance, Executive Compensation, Security Ownership, and Principal Accountant Fees](index=135&type=section&id=Items%2010%2C%2011%2C%2012%2C%2013%2C%20and%2014) Information for Items 10 through 14, covering governance, compensation, and ownership, is incorporated by reference from the company's 2021 definitive proxy statement - Information for Items 10, 11, 12, 13, and 14 is incorporated by reference from the registrant's definitive proxy statement[744](index=744&type=chunk)[745](index=745&type=chunk)[748](index=748&type=chunk)[749](index=749&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=136&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section provides an index of exhibits and notes the omission of financial statement schedules from the Annual Report on Form 10-K - This section contains the index to the Consolidated Financial Statements and a list of exhibits filed with the report, with all financial statement schedules having been omitted[751](index=751&type=chunk)[752](index=752&type=chunk) [Form 10-K Summary](index=139&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company provides no Form 10-K summary - None[761](index=761&type=chunk)

Financial Data and Key Metrics Changes - The company reported $385 million in revenue for Q4 2021, a 12% increase year-over-year and a 19% increase sequentially from Q3 2021, driven by the strength of the residential business [22][23] - Adjusted EBITDA was negative $8 million, impacted by a $27 million charge for crack connectors in commercial equipment and other costs related to sales and marketing, weather, and COVID-related delays [22][23] - Residential gross margins reached 25.6%, up 100 basis points year-over-year, marking the highest margins in nearly six years [24] Business Line Data and Key Metrics Changes - The residential business saw nearly 22,500 new customer bookings in Q4 2021, a 42% increase over the previous year, leading to a record addition of 17,000 customers, representing 31% year-over-year growth [8][9] - The New Home segment reported a record pipeline of 66,000 customers, more than 40% higher than a year ago [9] - Sunbelt bookings exited 2021 with a run-rate of over $130 million [9] Market Data and Key Metrics Changes - The company is experiencing strong growth in both California and other regions, particularly in the Northeast and Southeast [30] - The attach rate for the SunVault battery product has increased to the mid-30s percentage in the direct channel, indicating strong demand for battery storage [31] Company Strategy and Development Direction - The company is transforming into a residential solar company focused on customer experience, aiming to create a lifetime relationship with customers through an ecosystem of integrated products and services [10] - Five strategic pillars have been established: customer care, growth, best and affordable products, digital innovation, and world-class financial solutions [11][12][13][14][15] - The company plans to invest in upgrading customer services, expanding sales outside California, and introducing new high-value products [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth despite short-term challenges from the pandemic and supply chain issues [9][21] - The company anticipates a strong demand for residential solar and plans to increase the origination of residential financing from 35% in 2021 to 45% in 2022 [20][25] - Guidance for 2022 includes an adjusted EBITDA range of $90 million to $110 million, with expectations of over 35% volume growth and 73,000 to 80,000 new customers [25][26] Other Important Information - The company has successfully transitioned to focus solely on the residential solar business, exiting the light commercial business [66] - A new module supply agreement allows the company to continue offering existing residential products while exploring additional panel providers [21] Q&A Session Summary Question: Steps to boost growth outside California - Management highlighted strong growth in the Northeast and Southeast, with plans to discuss Blue Raven's expansion at the Analyst Day [30] Question: Trends in SunVault attach rates with EVs - Management noted that the combination of solar, battery, and EV products is expected to grow rapidly, particularly in new homes [33] Question: Role of SunPower Financial in revenue mix - Management indicated plans to increase financing from 35% to 45% and build a scalable financial products business [36][37] Question: Impact of connectors charge on guidance - Management confirmed that the connectors charge is included in the guidance for both customer and EBITDA metrics [64] Question: Sensitivities regarding NEM and ITC changes - Management expressed cautious optimism about favorable outcomes for NEM and ITC, with potential benefits for the company [57][58] Question: Changes to cost structure after exiting light commercial business - Management stated that there would be minimal impact on OpEx, as most employees would be reallocated to the residential business [65]

SunPower Corporation (NASDAQ:SPWR) Q3 2021 Earnings Conference Call November 3, 2021 4:30 PM ET Company Participants Michael Weinstein – Head-Investor Relations Peter Faricy – Chief Executive Officer Manu Sial – Chief Financial Officer Conference Call Participants Ben Kallo – Baird Sean Morgan – Evercore Kashy Harrison – Piper Sandler Brian Lee – Goldman Sachs Philip Shen – ROTH Capital Maheep Mandloi – Credit Suisse Joe Beninati – Oppenheimer Operator Good day and thank you for standing by. Welcome to the ...

SunPower Corporation (NASDAQ:SPWR) Q2 2021 Results Earnings Conference Call August 3, 2021 4:30 PM ET Company Participants Robert Okunski - Vice President, Investor Relations Peter Faricy - Chief Executive Officer Manavendra Sial - Executive Vice President and Chief Financial Officer Eric Potts - Executive Vice President, Commercial Americas Conference Call Participants Benjamin Kallo - Robert W. Baird & Co. Brian Lee - Goldman Sachs Maheep Mandloi - Credit Suisse Philip Shen - ROTH Capital Partners Kashy H ...

Part I. FINANCIAL INFORMATION [Item 1. Financial Statements (unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) This section presents SunPower Corporation's unaudited condensed consolidated financial statements for the quarter ended July 4, 2021, including balance sheets, statements of operations, comprehensive income, equity, and cash flows, with detailed notes on accounting policies and financial data [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of July 4, 2021, shows total assets decreased to **$1.55 billion** from **$1.65 billion**, primarily due to reduced other long-term assets, while total liabilities decreased to **$1.10 billion** from **$1.24 billion**, and total equity increased to **$444.0 million** from **$406.5 million** Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | July 4, 2021 | January 3, 2021 | | :--- | :--- | :--- | | **Total Assets** | **$1,546,632** | **$1,646,482** | | Total Current Assets | $1,061,347 | $790,315 | | **Total Liabilities** | **$1,102,619** | **$1,239,996** | | Total Current Liabilities | $408,230 | $529,731 | | Convertible debt, net | $423,059 | $484,974 | | **Total Equity** | **$444,013** | **$406,486** | [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the three months ended July 4, 2021, total revenues increased to **$308.9 million**, driving gross profit to **$61.0 million**, with net income attributable to stockholders at **$75.2 million** or **$0.44** per basic share, significantly influenced by an **$83.0 million** gain on equity investments Statement of Operations Summary (in thousands, except per share data) | Metric | Q2 2021 (3 months ended Jul 4) | Q2 2020 (3 months ended Jun 28) | H1 2021 (6 months ended Jul 4) | H1 2020 (6 months ended Jun 28) | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | **$308,927** | **$217,667** | **$615,325** | **$508,213** | | Gross Profit | $61,031 | $25,652 | $110,905 | $54,836 | | Operating Income (Loss) | $730 | $(7,298) | $(2,608) | $(27,901) | | **Net Income Attributable to Stockholders** | **$75,207** | **$19,378** | **$26,822** | **$17,947** | | Diluted EPS (Continuing Operations) | $0.40 | $0.31 | $0.15 | $0.44 | [Condensed Consolidated Statements of Cash Flows](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended July 4, 2021, net cash used in operating activities improved to **$18.4 million**, net cash provided by investing activities decreased to **$7.4 million**, and net cash used in financing activities was **$84.2 million**, primarily for debt repayments Cash Flow Summary (in thousands) | Cash Flow Activity | Six Months Ended July 4, 2021 | Six Months Ended June 28, 2020 | | :--- | :--- | :--- | | Net cash used in operating activities | $(18,353) | $(158,842) | | Net cash provided by investing activities | $7,363 | $55,838 | | Net cash used in financing activities | $(84,187) | $(81,409) | | **Net decrease in cash** | **$(95,177)** | **$(184,299)** | [Notes to Condensed Consolidated Financial Statements](index=14&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section details accounting policies and financial statement figures, covering company organization, transactions with TotalEnergies SE, revenue recognition, balance sheet components, business divestitures, fair value measurements, restructuring, debt, and segment information - The company completed the spin-off of Maxeon Solar on August 26, 2020, with prior periods presented as discontinued operations[38](index=38&type=chunk) - As of July 4, 2021, TotalEnergies SE and its affiliates owned approximately **51%** of the company's outstanding common stock[48](index=48&type=chunk) - In June 2021, the company repaid the remaining **$62.5 million** principal of its 0.875% debentures due 2021[60](index=60&type=chunk) - During the quarter, the company sold certain commercial projects and residential lease assets to its joint venture, SunStrong, resulting in a net gain on business divestitures of **$0.2 million**[91](index=91&type=chunk)[98](index=98&type=chunk)[197](index=197&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=46&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 2021 financial performance, highlighting a **42%** year-over-year revenue increase driven by the Residential, Light Commercial segment, covering results by segment, income statement analysis, liquidity, capital resources, and recent developments [Results of Operations](index=48&type=section&id=Results%20of%20Operations) Q2 2021 total revenue increased **42%** YoY to **$308.9 million**, driven by a **59%** increase in the RLC segment, improving gross margin to **20%**, while SG&A expenses rose **58%**, and **$76.5 million** in other income, largely from equity investment gains, led to **$75.2 million** net income Revenue by Segment - Q2 YoY Change (in thousands) | Segment | Q2 2021 | Q2 2020 | % Change | | :--- | :--- | :--- | :--- | | Residential, Light Commercial | $254,119 | $160,290 | 59% | | Commercial and Industrial Solutions | $48,176 | $50,320 | (4)% | | Others | $6,628 | $12,700 | (48)% | | **Total Revenue** | **$308,927** | **$217,667** | **42%** | Gross Margin by Segment - Q2 YoY | Segment | Q2 2021 | Q2 2020 | | :--- | :--- | :--- | | Residential, Light Commercial | 23% | 16% | | Commercial and Industrial Solutions | 1% | 21% | | **Total Gross Margin** | **20%** | **12%** | - SG&A expenses increased by **58%** YoY in Q2 2021, primarily due to higher litigation costs, increased labor costs from new hires, and accelerated stock vesting for former executives[242](index=242&type=chunk) - Other income for Q2 2021 included an **$83.0 million** gain on an equity investment (Enphase Energy stock), compared to a **$71.1 million** gain in Q2 2020[113](index=113&type=chunk)[252](index=252&type=chunk) [Liquidity and Capital Resources](index=56&type=section&id=Liquidity%20and%20Capital%20Resources) As of July 4, 2021, the company held **$140.5 million** in unrestricted cash, with net cash used in operating activities improving to **$18.4 million** for the first six months, and **$84.2 million** used in financing activities for debt repayment, with management confident in meeting obligations for the next 12 months Cash and Cash Equivalents (in thousands) | Date | Unrestricted Cash & Cash Equivalents | | :--- | :--- | | July 4, 2021 | $140,462 | | January 3, 2021 | $232,765 | - The **$140.5 million** decrease in cash used in operations for the first half of 2021 compared to 2020 was primarily due to lower payments for accounts payable and accrued liabilities, and lower contract assets from a milestone settlement[265](index=265&type=chunk) - Management believes total cash and cash equivalents are sufficient to meet obligations for the next 12 months, citing historical success in divesting assets and securing financing[272](index=272&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=58&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) There have been no material changes in the company's market risk exposures since January 3, 2021, with detailed information available in the Annual Report on Form 10-K - There have been no material changes in the company's market risk exposures since January 3, 2021[277](index=277&type=chunk) [Controls and Procedures](index=59&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of July 4, 2021, with no material changes to internal control over financial reporting identified during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of July 4, 2021[280](index=280&type=chunk) - No material changes to the internal control over financial reporting were identified during the most recent fiscal quarter[281](index=281&type=chunk) Part II. OTHER INFORMATION [Legal Proceedings](index=59&type=section&id=Item%201.%20Legal%20Proceedings) This section incorporates legal matters from Note 8, stating the company is involved in various litigation matters in the ordinary course of business but does not expect a material adverse effect - The company is involved in various litigation matters from the ordinary course of business but does not expect them to have a material adverse effect[142](index=142&type=chunk)[282](index=282&type=chunk) [Risk Factors](index=59&type=section&id=Item%201A.%20Risk%20Factors) Updated risk factors include dependency on key personnel following executive transitions, reliance on Maxeon Solar as an exclusive supplier for critical components, and potential supply chain disruptions due to human rights concerns in sourcing materials - The company highlights risks associated with recent executive transitions, including a new CEO and Chief Legal Officer, and the potential for loss of continuity or inefficiency[286](index=286&type=chunk) - A significant risk is the dependency on Maxeon Solar as the exclusive supplier for certain products under a two-year Supply Agreement, making the company vulnerable to supply interruptions or delays[287](index=287&type=chunk)[288](index=288&type=chunk) - The company notes potential supply chain disruptions related to human rights concerns, such as forced labor allegations in China's Xinjiang region, which could impact the sourcing of polysilicon and other materials[291](index=291&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=61&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's repurchase of **186,999** shares during the quarter to satisfy tax withholding obligations related to employee restricted stock vesting Issuer Purchases of Equity Securities (Q2 2021) | Period | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | Apr 5 - May 2, 2021 | — | $— | | May 3 - May 30, 2021 | 76,171 | $23.26 | | May 31 - Jul 4, 2021 | 110,828 | $22.84 | | **Total** | **186,999** | **N/A** | - All shares purchased during the quarter were surrendered by employees to satisfy tax withholding obligations upon the vesting of restricted stock[293](index=293&type=chunk) [Exhibits](index=62&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including management certifications (Sarbanes-Oxley Act Sections 302 and 906) and Interactive Data Files (Inline XBRL) - Exhibits filed include CEO and CFO certifications and Inline XBRL financial data[296](index=296&type=chunk)

SunPower Corporation (NASDAQ:SPWR) Q1 2021 Earnings Conference Call May 5, 2021 8:30 AM ET Company Participants Bob Okunski - Investor Relations Peter Faricy - Chief Executive Officer Tom Werner - Chairman Manu Sial - Chief Financial Officer Eric Potts - Executive Vice President, Commercial Americas Norm Taffe - Executive Vice President, Channels Conference Call Participants Ben Kallo - Baird Brian Lee - Goldman Sachs Michael Weinstein - Credit Suisse Philip Shen - ROTH Capital Partners Colin Rusch - Oppenh ...