NEW PORT RICHEY, Fla., Sept. 08, 2025 (GLOBE NEWSWIRE) -- Zeo Energy Corp. (Nasdaq: ZEO) (“Zeo,” “Zeo Energy,” or the “Company”), a Florida-based provider of residential solar and commercial long-duration energy-storage solutions, today announced that the Company will be presenting at ROTH Capital’s 12th Annual Solar & Storage Symposium on Tuesday, September 9, at the upcoming RE+ trade show in Las Vegas, Nevada, which runs from September 8-11, 2025. The symposium, hosted by ROTH Capital during RE+, provide ...

Summary of Zeo Energy Corp Conference Call Company Overview - **Company Name**: Zeo Energy Corp - **Ticker Symbol**: ZEO - **Industry**: Residential solar sales, installation, and maintenance - **Location**: New Port Richey, Florida - **Public Listing**: Went public via SPAC in March 2024 - **Recent Acquisitions**: Acquired assets from bankrupt Lumio and energy storage company Heliogen, Inc. [2][14] Core Business Insights - **Ownership Structure**: Founder-owned with insiders owning over 60% of the company [3] - **Sales Force**: Approximately 300 sales representatives focused on door-to-door sales [3][4] - **Profitability**: Profitable since 2019 with positive EBITDA; did not require capital raise during public offering [3][12] - **Market Position**: Historically outperformed the industry until 2023 due to high interest rates leading to bankruptcies among competitors [3][4] Market Dynamics - **Industry Challenges**: High interest rates and poor cash management have led to turmoil in the residential solar market, with notable bankruptcies [4][12] - **Market Recovery**: Anticipation of market recovery and growth in the coming years [4][13] - **Sales Strategy**: Seasonal sales approach with a focus on summer sales blitzes [4][5] Growth Strategy - **Acquisition Focus**: Expanding through acquisitions and diversifying into commercial energy storage [6][14] - **Energy Storage Demand**: Increasing demand for long-duration energy storage solutions, particularly for AI data centers and large manufacturers [6][15] - **Customer Base**: Targeting solid credit customers (740 FICO score) for long-term leases [6] Competitive Landscape - **Comparison with Competitors**: Compared to larger competitors like Sunrun and Sunova, Zeo has lower debt and a more stable financial position [11][12] - **Market Penetration**: U.S. residential solar penetration is low compared to countries like Germany (12%), Netherlands (24%), and Australia (38%) [10][11] Financial Outlook - **Revenue Seasonality**: Approximately 65% of revenues and profitability expected in the second half of the year due to seasonal business [12] - **Future Projections**: Potential to double the number of homes with solar installations in the U.S. from 5 million to 10 million [11] Technology and Innovation - **Energy Storage Technologies**: Focus on molten salt and compressed CO2 storage technologies for energy storage solutions [6][20] - **Cost Efficiency**: Levelized cost of energy for 24/7 solar with backup CO2 is below $0.10 per kilowatt-hour [27] - **Long-Term Viability**: Storage technologies are expected to outperform lithium-based solutions in long-duration applications [31] Strategic Partnerships - **Leasing Partnerships**: Collaborating with leasing companies to provide long-term leases and tax equity benefits [6][16] - **Market Expansion**: Exploring complementary services such as roofing and HVAC to enhance offerings [13] Conclusion - **Market Positioning**: Zeo Energy Corp is well-positioned for growth in the residential and commercial solar markets, with a strong focus on energy storage solutions and a solid financial foundation [13][15]

Company Overview - Zeo Energy Corp. is a diversified clean energy company based in Florida, providing residential, commercial, industrial, and utility-scale solutions aimed at reducing costs and carbon emissions [6] - The company operates Sunergy, focusing on residential solar and distributed energy solutions in high-growth markets with limited competition [6] - Zeo also manages Heliogen, Inc., which specializes in long-duration energy generation and storage for high-demand applications such as AI and data centers [6] Upcoming Conference Participation - Zeo Energy Corp. will present at the 2025 Annual Gateway Conference on September 4th at 12:30 p.m. Pacific Time [2] - The presentation will be webcast live, and Zeo executives will be available for one-on-one meetings throughout the conference [2] - The Gateway Conference aims to connect growth-stage companies with prospective investors, analysts, and partners [3][4] Industry Context - The Gateway Conference features a diverse range of companies across various sectors, including technology, cleantech, consumer, industrials, financial services, and healthcare [4] - The event provides investors and analysts exclusive access to senior executives from over 75 private and public companies [4]

NEW PORT RICHEY, Fla., Aug. 13, 2025 (GLOBE NEWSWIRE) -- Zeo Energy Corp. (Nasdaq: ZEO) ("Zeo," "Zeo Energy," or the "Company"), a Florida-based provider of residential solar and energy efficiency solutions, today reported financial results for the second quarter and six months ended June 30, 2025. Recent Operational Highlights Management Commentary "In the second quarter we returned to growth and executed well through most of our peak selling season," said Zeo Energy Corp. CEO Tim Bridgewater. "During the ...

[FORM 10-Q Cover Page](index=1&type=section&id=FORM%2010-Q%20Cover%20Page) This section details ZEO ENERGY CORP.'s Form 10-Q filing, stock exchange listings, and company classifications - ZEO ENERGY CORP. filed a Form 10-Q for the quarterly period ended June 30, 2025[1](index=1&type=chunk) - The company's Class A Common Stock (ZEO) and Warrants (ZEOWW) are registered on The Nasdaq Stock Market LLC[2](index=2&type=chunk) - ZEO ENERGY CORP. is classified as a Non-accelerated filer, Smaller reporting company, and Emerging growth company[3](index=3&type=chunk) Shares Outstanding as of August 12, 2025 | Class | Shares Outstanding | | :------------------ | :----------------- | | Class A Common Stock | 28,352,032 | | Class V Common Stock | 26,480,000 | [TABLE OF CONTENTS](index=3&type=section&id=TABLE%20OF%20CONTENTS) This section outlines the structure and organization of the Form 10-Q report [PART I – FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) This part presents the unaudited condensed consolidated financial statements and management's discussion and analysis [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents Zeo Energy Corp.'s unaudited condensed consolidated financial statements and accompanying notes for the specified periods [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section provides a snapshot of the company's financial position at June 30, 2025, and December 31, 2024 Key Balance Sheet Figures | Metric | June 30, 2025 | December 31, 2024 | Change ($) | Change (%) | | :--------------------------------------- | :------------ | :---------------- | :----------- | :--------- | | Total Assets | $46,230,636 | $60,976,116 | $(14,745,480) | (24.2)% | | Total Liabilities | $16,276,304 | $18,063,424 | $(1,787,120) | (9.9)% | | Total Stockholders' Deficit | $(59,446,742) | $(88,912,079) | $29,465,337 | (33.1)% | | Cash and cash equivalents | $68,691 | $5,634,115 | $(5,565,424) | (98.8)% | | Intangibles, net | $- | $7,571,156 | $(7,571,156) | (100.0)% | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section details the company's financial performance for the three and six months ended June 30, 2025 and 2024 Three Months Ended June 30, 2025 vs. 2024 | Metric | 2025 | 2024 | Change ($) | Change (%) | | :-------------------------------- | :----------- | :----------- | :----------- | :--------- | | Total Revenues | $18,101,930 | $14,796,272 | $3,305,658 | 22.3% | | Loss from Operations | $(2,853,506) | $(2,662,870) | $(190,636) | 7.2% | | Net Loss | $(2,679,464) | $(1,757,319) | $(922,145) | 52.5% | | Loss per Class A Common Share | $(0.11) | $(0.06) | $(0.05) | 83.3% | Six Months Ended June 30, 2025 vs. 2024 | Metric | 2025 | 2024 | Change ($) | Change (%) | | :-------------------------------- | :----------- | :----------- | :----------- | :--------- | | Total Revenues | $26,885,625 | $34,938,428 | $(8,052,803) | (23.0)% | | Loss from Operations | $(16,364,904) | $(6,711,418) | $(9,653,486) | 143.8% | | Net Loss | $(15,998,827) | $(5,864,421) | $(10,134,406) | 172.8% | | Loss per Class A Common Share | $(0.44) | $(0.60) | $0.16 | (26.7)% | | Depreciation and amortization | $8,076,181 | $913,198 | $7,162,983 | 784.4% | | General and administrative | $15,334,050 | $8,742,993 | $6,591,057 | 75.4% | [Condensed Consolidated Statements of Changes in Redeemable Non-Controlling Interests and Stockholders' Deficit](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Redeemable%20Non-Controlling%20Interests%20and%20Stockholders%27%20Deficit) This section outlines changes in redeemable non-controlling interests and stockholders' deficit for the reported periods Stockholders' Deficit | Period | Amount | | :-------------------- | :------------- | | June 30, 2025 | $(59,446,742) | | December 31, 2024 | $(88,912,079) | - Significant changes for the six months ended June 30, 2025, include **$3,215,449** in stock-based compensation, **$19,167,500** from Class A common stock issued in exchange for OpCo class B units, and **$15,999,471** from subsequent measurement of redeemable non-controlling interests[16](index=16&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section presents the cash flow activities from operations, investing, and financing for the six months ended June 30 Cash Flow Summary (Six Months Ended June 30) | Activity | 2025 | 2024 | Change ($) | | :--------------------------------------- | :----------- | :------------ | :----------- | | Net cash used in operating activities | $(4,549,934) | $(12,351,750) | $7,801,816 | | Net cash used in investing activities | $(807,025) | $(330,829) | $(476,196) | | Net cash (used in) provided by financing activities | $(208,465) | $10,002,393 | $(10,210,858) | | Cash and cash equivalents, end of the period | $68,691 | $5,342,120 | $(5,273,429) | [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the condensed consolidated financial statements [NOTE 1—BASIS OF PRESENTATION AND OTHER INFORMATION](index=11&type=section&id=NOTE%201%E2%80%94BASIS%20OF%20PRESENTATION%20AND%20OTHER%20INFORMATION) This note outlines the basis of financial statement preparation and the adoption or evaluation of new accounting standards - The unaudited condensed consolidated financial statements are prepared in accordance with GAAP for interim financial information and should be read in conjunction with the Form 10-K[24](index=24&type=chunk) - ASU 2023-05 (Business Combinations—Joint Venture Formations) was adopted and did not have a material impact[26](index=26&type=chunk) - ASU 2023-09 (Income Tax Disclosures) and ASU 2024-03 (Expense Disaggregation Disclosures) are currently being evaluated for their impact on future financial statements[27](index=27&type=chunk)[28](index=28&type=chunk) [NOTE 2—DISAGGREGATION OF REVENUES AND SEGMENT REPORTING](index=12&type=section&id=NOTE%202%E2%80%94DISAGGREGATION%20OF%20REVENUES%20AND%20SEGMENT%20REPORTING) This note details the company's revenue breakdown by type and confirms its operation as a single reportable segment Total Net Revenues | Period | 2025 | 2024 | Change ($) | Change (%) | | :-------------------- | :----------- | :----------- | :----------- | :--------- | | Three Months Ended June 30 | $18,101,930 | $14,796,272 | $3,305,658 | 22.3% | | Six Months Ended June 30 | $26,885,625 | $34,938,428 | $(8,052,803) | (23.0)% | Revenue by Type (Six Months Ended June 30) | Revenue Type | 2025 | 2024 | | :-------------------------- | :----------- | :----------- | | Solar system installations, net | $26,064,556 | $33,101,976 | | Roofing installations | $821,069 | $1,676,357 | - The Company operates as a single operating and reportable segment, focused on the sales and installation of solar panel technology to individual households within the United States[32](index=32&type=chunk) [NOTE 3—PROPERTY AND EQUIPMENT](index=13&type=section&id=NOTE%203%E2%80%94PROPERTY%20AND%20EQUIPMENT) This note provides details on the company's property and equipment, including internally-developed software and depreciation expense Property and Equipment, Net | Metric | June 30, 2025 | December 31, 2024 | Change ($) | | :-------------------------- | :------------ | :---------------- | :----------- | | Total property and equipment, net | $2,849,966 | $2,475,963 | $374,003 | | Internally-developed software | $1,795,250 | $988,225 | $807,025 | Depreciation Expense (Six Months Ended June 30) | Year | Amount | | :--- | :------- | | 2025 | $433,022 | | 2024 | $330,946 | [NOTE 4—INTANGIBLE ASSETS](index=13&type=section&id=NOTE%204%E2%80%94INTANGIBLE%20ASSETS) This note details the company's intangible assets and associated amortization expense for the reported periods Intangible Assets, Net | Metric | June 30, 2025 | December 31, 2024 | Change ($) | | :------------------------ | :------------ | :---------------- | :----------- | | Total intangible assets, net | $- | $7,571,156 | $(7,571,156) | Amortization Expense (Six Months Ended June 30) | Year | Amount | | :--- | :----------- | | 2025 | $7,571,156 | | 2024 | $514,017 | [NOTE 5—ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES](index=13&type=section&id=NOTE%205%E2%80%94ACCRUED%20EXPENSES%20AND%20OTHER%20CURRENT%20LIABILITIES) This note provides a breakdown of accrued expenses and other current liabilities, including related party balances Accrued Expenses and Other Current Liabilities | Metric | June 30, 2025 | December 31, 2024 | Change ($) | | :--------------------------------------- | :------------ | :---------------- | :----------- | | Total accrued expenses and other current liabilities | $4,116,182 | $5,181,087 | $(1,064,905) | | Accrued expenses and other current liabilities – related parties | $1,358,427 | $3,359,101 | $(2,000,674) | [NOTE 6—LEASES](index=14&type=section&id=NOTE%206%E2%80%94LEASES) This note details the company's lease obligations, including new operating leases and weighted-average lease terms and discount rates - The Company entered into a new operating lease for office space in Richmond, Virginia, in June 2025, with a 3-year term[37](index=37&type=chunk) Operating Lease Liabilities | Metric | June 30, 2025 | December 31, 2024 | Change ($) | | :-------------------------- | :------------ | :---------------- | :----------- | | Total operating lease liabilities | $1,136,495 | $1,382,814 | $(246,319) | | Weighted-average remaining lease term | 2.11 years | 2.39 years | - | | Weighted-average discount rate | 5.04% | 4.97% | - | - As of June 30, 2025, the weighted-average remaining lease term for all finance leases is **2.78 years** and the weighted average discount rate is **9.76%**[40](index=40&type=chunk) [NOTE 7—DEBT](index=15&type=section&id=NOTE%207%E2%80%94DEBT) This note outlines the company's debt obligations, including vehicle loans and a convertible promissory note with a high effective interest rate - As of June 30, 2025, the weighted-average interest rate on the Company's vehicle loan obligations was **7.63%**, with total long-term debt (net of current portion) of **$337,483**[41](index=41&type=chunk)[42](index=42&type=chunk) - The Company issued a convertible promissory note to LHX Intermediate LLC for up to **$4,000,000**, with **$2.5 million** advanced as of June 30, 2025[43](index=43&type=chunk) - The convertible note is repayable in Class A common stock at **$1.35 per share**, resulting in a computed effective interest rate of **114.8%** as of June 30, 2025[44](index=44&type=chunk) [NOTE 8—FAIR VALUE MEASUREMENTS](index=16&type=section&id=NOTE%208%E2%80%94FAIR%20VALUE%20MEASUREMENTS) This note details the fair value measurement of warrant liabilities and the associated gain on change in fair value Warrant Liabilities (Level 1 Measurement) | Metric | June 30, 2025 | December 31, 2024 | Change ($) | | :--------------------------------------- | :------------ | :---------------- | :----------- | | Warrant liabilities | $881,820 | $1,449,000 | $(567,180) | | Gain on change in fair value of warrant liabilities (six months) | $(567,180) | - | - | [NOTE 9—REDEEMABLE NON-CONTROLLING INTERESTS AND EQUITY](index=16&type=section&id=NOTE%209%E2%80%94REDEEMABLE%20NON-CONTROLLING%20INTERESTS%20AND%20EQUITY) This note outlines the company's capital stock structure, changes in equity, and the unrecorded Tax Receivable Agreement liability Capital Stock as of June 30, 2025 | Class | Authorized Shares | Issued Shares | Outstanding Shares | | :-------------------------- | :---------------- | :------------ | :----------------- | | Class A common stock | 300,000,000 | 22,096,464 | 22,096,464 | | Class V common stock | 100,000,000 | 26,480,000 | 26,480,000 | | Class A convertible preferred units | 1,500,000 | 1,500,000 | 1,500,000 | - During the six months ended June 30, 2025, **8,750,000** Class A common shares were issued in exchange for OpCo class B units and corresponding class V common shares[48](index=48&type=chunk) - The total unrecorded Tax Receivable Agreement (TRA) liability is approximately **$18.9 million** as of June 30, 2025[51](index=51&type=chunk) OpCo Class A Preferred Dividends | Period | Amount | | :-------------------- | :------- | | Three Months Ended June 30, 2025 | $422,966 | | Six Months Ended June 30, 2025 | $828,203 | [NOTE 10—STOCK-BASED COMPENSATION](index=18&type=section&id=NOTE%2010%E2%80%94STOCK-BASED%20COMPENSATION) This note details the company's stock-based compensation plans, including the 2024 Omnibus Incentive Equity Plan and various awards - The 2024 Omnibus Incentive Equity Plan was approved on March 6, 2024, reserving **3,220,400 shares**, with an automatic annual increase[54](index=54&type=chunk) - Performance-based executive shares for the CEO are tied to stock price thresholds (**$7.50, $12.50, $15.00**) within three years of the closing date[57](index=57&type=chunk) Equity Compensation Expense (Six Months Ended June 30, 2025) | Award Type | Expense | | :--------------------------------------- | :----------- | | CEO Performance-Based Awards | $1,284,672 | | February 2025 Grants (740k + 250k shares) | $592,920 | | Sun Managers, LLC Management Incentive Plan | $792,750 | | Seasonal Manager Stock Compensation Plan | $545,107 | - As of June 30, 2025, remaining unrecognized compensation expense for various plans totals approximately **$3.05 million**, to be recognized over periods ranging from **0.75 to 2.6 years**[58](index=58&type=chunk)[62](index=62&type=chunk)[69](index=69&type=chunk) [NOTE 11—RELATED PARTY TRANSACTIONS](index=20&type=section&id=NOTE%2011%E2%80%94RELATED%20PARTY%20TRANSACTIONS) This note outlines the company's transactions with related parties, including solar leasing revenue and convertible debt arrangements Related Party Revenue (Solar Leasing) | Period | 2025 | 2024 | | :-------------------- | :----------- | :----------- | | Three Months Ended June 30 | $8,125,483 | $6,997,626 | | Six Months Ended June 30 | $10,692,787 | $15,810,395 | - The Company transferred a **$3,000,000** rebate from Solar Leasing to White Horse Energy (wholly owned by the CEO) in the form of convertible debt, with a principal balance of **$3,000,000** as of June 30, 2025[72](index=72&type=chunk) - Interest income from the related party note receivable was **$75,786** for the six months ended June 30, 2025[72](index=72&type=chunk) - An unrecorded Tax Receivable Agreement (TRA) liability of approximately **$18.9 million** exists as of June 30, 2025[73](index=73&type=chunk) [NOTE 12—NET LOSS PER SHARE](index=21&type=section&id=NOTE%2012%E2%80%94NET%20LOSS%20PER%20SHARE) This note presents the basic and diluted net loss per Class A common share and weighted-average shares outstanding Loss per Class A Common Share – Basic and Diluted | Period | 2025 | 2024 | | :-------------------- | :------- | :------- | | Three Months Ended June 30 | $(0.11) | $(0.06) | | Six Months Ended June 30 | $(0.44) | $(0.60) | Weighted-Average Class A Common Shares Outstanding – Basic and Diluted | Period | 2025 | 2024 | | :-------------------- | :----------- | :----------- | | Three Months Ended June 30 | 22,096,464 | 5,026,964 | | Six Months Ended June 30 | 19,983,013 | 3,010,654 | - **43,221,852** potential common share equivalents were excluded from diluted loss per share calculations as of June 30, 2025, due to their anti-dilutive effect[74](index=74&type=chunk) [NOTE 13—INCOME TAXES](index=22&type=section&id=NOTE%2013%E2%80%94INCOME%20TAXES) This note details the effective tax rate, deferred tax assets and liabilities, and the valuation allowance recorded Effective Tax Rate (ETR) from Continuing Operations | Period | ETR | | :--------------------------------------- | :-------- | | Three Months Ended June 30, 2025 | 8.5% benefit on loss | | Six Months Ended June 30, 2025 | 2.2% expense on loss | Net Deferred Tax Assets and Liabilities | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Net deferred tax asset | $- | $661,904 | | Net deferred tax assets and liabilities | $- | $238,491 | - A valuation allowance was recorded on deferred tax assets as their realization is not more likely than not[76](index=76&type=chunk) [NOTE 14—SUBSEQUENT EVENTS](index=22&type=section&id=NOTE%2014%E2%80%94SUBSEQUENT%20EVENTS) This note discloses significant events occurring after the reporting period, including debt conversion, new legislation, and a merger - On July 1, 2025, approximately **$2.55 million** of outstanding accounts payable was converted into an **18%** annual interest note payable[78](index=78&type=chunk) - The One Big Beautiful Bill Act of 2025 (OBBBA) was signed into law on July 4, 2025, and is not expected to materially impact the 2025 effective tax rate[79](index=79&type=chunk) - The merger with Heliogen, Inc. was completed on August 8, 2025, making Heliogen a direct, wholly-owned subsidiary of Zeo Energy[80](index=80&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on Zeo Energy Corp.'s financial condition, results of operations, and key influencing factors [Cautionary Note Regarding Forward-Looking Statements](index=23&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) This note advises that the report contains forward-looking statements subject to risks and uncertainties, with no obligation to update - The report contains forward-looking statements that involve known and unknown risks, uncertainties, and assumptions, and the company disclaims any obligation to update them[82](index=82&type=chunk) [Overview](index=23&type=section&id=Overview) This section describes Zeo Energy Corp.'s business model, product offerings, operational regions, and customer financing methods - Zeo Energy Corp. is a vertically integrated company offering sales, design, procurement, installation, and maintenance of residential solar energy systems, with a mission to expedite the transition to renewable energy[83](index=83&type=chunk) - The company also sells and installs roofing, insulation, energy-efficient appliances, and battery storage systems[86](index=86&type=chunk) - Operations are primarily in Florida, Texas, Arkansas, Missouri, Ohio, and Illinois, with an expanding customer base in California, Colorado, Minnesota, Utah, and Virginia[83](index=83&type=chunk) - The business model is capital-light, utilizing approximately **280 sales agents** and **12 independent sales dealers**, with most equipment drop-shipped to installation sites[86](index=86&type=chunk) - Most customers finance purchases through third-party long-term lenders or leasing products[87](index=87&type=chunk) [Recent Developments](index=24&type=section&id=Recent%20Developments) This section highlights significant recent events, including the acquisition of Heliogen, Inc [Heliogen Acquisition](index=24&type=section&id=Heliogen%20Acquisition) This section details the merger agreement and completion of the Heliogen, Inc. acquisition, including share exchange terms - On May 28, 2025, the Company entered into a Merger Agreement to acquire Heliogen, Inc., with the mergers completed on August 8, 2025[89](index=89&type=chunk) - Heliogen common stockholders received **0.9591 shares** of Zeo Class A Common Stock for each share of Heliogen Common Stock[91](index=91&type=chunk) - All Heliogen RSUs were automatically accelerated and fully vested, while Heliogen Options and Commercial Warrants were cancelled without payment due to exercise prices being at or above the purchase price[93](index=93&type=chunk)[94](index=94&type=chunk)[96](index=96&type=chunk) [Key Operating and Financial Metrics and Outlook](index=25&type=section&id=Key%20Operating%20and%20Financial%20Metrics%20and%20Outlook) This section presents key operating and financial metrics for the reported periods and discusses their use in performance evaluation Key Operating and Financial Metrics (Three Months Ended June 30) | Metric | 2025 | 2024 | | :------------------ | :----------- | :----------- | | Revenue, net | $18,101,930 | $14,796,272 | | Gross profit | $10,603,679 | $7,573,890 | | Gross margin | 58.6% | 51.2% | | Contribution profit | $2,741,929 | $3,165,365 | | Contribution margin | 15.1% | 21.4% | | Loss from operations | $(2,853,506) | $(2,662,870) | | Net loss | $(2,679,464) | $(1,757,319) | | Adjusted EBITDA | $1,400,148 | $775,737 | | Adjusted EBITDA margin | 7.7% | 5.2% | Key Operating and Financial Metrics (Six Months Ended June 30) | Metric | 2025 | 2024 | | :------------------ | :----------- | :----------- | | Revenue, net | $26,885,625 | $34,938,428 | | Gross profit | $14,378,437 | $13,589,677 | | Gross margin | 53.5% | 38.9% | | Contribution profit | $(34,390) | $5,237,435 | | Contribution margin | (0.1)% | 15.0% | | Loss from operations | $(16,364,904) | $(6,711,418) | | Net loss | $(15,998,827) | $(5,864,421) | | Adjusted EBITDA | $(4,953,383) | $(199,531) | | Adjusted EBITDA margin | (18.4)% | (0.6)% | - The company uses non-GAAP measures like Contribution Profit and Adjusted EBITDA to evaluate financial performance, efficiency, pricing strategy, and resource allocation[100](index=100&type=chunk)[101](index=101&type=chunk) [Key Factors that May Influence Future Results of Operations](index=26&type=section&id=Key%20Factors%20that%20May%20Influence%20Future%20Results%20of%20Operations) This section discusses factors impacting future financial performance, including market expansion, product offerings, and economic pressures - Future revenue growth is dependent on expanding product offerings and services into new residential markets, particularly underserved areas with favorable incentives and net metering policies[103](index=103&type=chunk) - Plans include expanding the roofing business to facilitate solar installations and offering more financing options, such as leasing[104](index=104&type=chunk) - The company intends to increase its in-house sales force and external sales dealers to target new customers in Southern U.S. regional residential markets[105](index=105&type=chunk) - Inflationary pressures are increasing costs for labor, raw materials, and components, along with supply chain constraints and trade tariffs, which may pressure operating margins[106](index=106&type=chunk) - Higher interest rates have led more homeowners to opt for lease contracts over conventional loans, impacting the competitive advantage of financed solar power[107](index=107&type=chunk) - Reliance on contract manufacturers and suppliers means delays or price increases in raw materials could adversely impact cash flows and results of operations[108](index=108&type=chunk) [Components of Condensed Consolidated Statements of Operations](index=27&type=section&id=Components%20of%20Condensed%20Consolidated%20Statements%20of%20Operations) This section defines the primary components of the statements of operations, including revenue, cost of goods sold, and operating expenses - Primary revenue source is residential solar system sales, recognized upon installation inspection, net of financing fees[109](index=109&type=chunk) - Cost of goods sold includes product costs, installation labor, and permitting, and decreased due to lower revenues and the impact of higher interest rates on consumer financing[112](index=112&type=chunk)[113](index=113&type=chunk) - Operating expenses consist of sales and marketing (including commissions, advertising) and general and administrative (including personnel, professional services, software, facilities costs)[115](index=115&type=chunk)[116](index=116&type=chunk)[117](index=117&type=chunk) - Depreciation and amortization primarily relate to vehicles, furniture, internally developed software, and acquired intangibles[118](index=118&type=chunk) [Results of Operations](index=28&type=section&id=Results%20of%20Operations) This section provides a detailed comparative analysis of the company's financial performance for the reported periods [Three Months Ended June 30, 2025 Compared to Three Months Ended June 30, 2024](index=28&type=section&id=Three%20Months%20Ended%20June%2030%2C%202025%20Compared%20to%20Three%20Months%20Ended%20June%2030%2C%202024) This section analyzes the financial performance for the three-month period, highlighting changes in revenue, costs, and expenses - Revenue, net increased by **$3.3 million (22.3%)** to **$18.1 million**, primarily due to an increase in revenues with a related-party third-party operator[119](index=119&type=chunk)[120](index=120&type=chunk) - Cost of goods sold increased by **$0.2 million (3.2%)** but declined as a percentage of revenue from **47.7% to 40.2%** due to an increase in the average selling price of contracts[119](index=119&type=chunk)[121](index=121&type=chunk) - Depreciation and amortization increased significantly by **$2.7 million (599.9%)** to **$3.2 million**, mainly due to amortization of acquired contracts from the Lumio Asset Purchase Agreement[119](index=119&type=chunk)[122](index=122&type=chunk) - Sales and marketing expenses increased by **$1.2 million (27.3%)** due to efforts to expand year-round sales through digital lead generation[119](index=119&type=chunk)[124](index=124&type=chunk) - General and administrative expenses decreased by **$0.7 million (11.6%)** due to a **$1.5 million** decrease in stock compensation and a **$0.6 million** decrease in bad debt expense, partially offset by increased payroll and public company expenses[119](index=119&type=chunk)[123](index=123&type=chunk) - Other income (expense), net decreased by **$0.84 million**, shifting from income to expense, primarily due to a gain on fair value of warrant liabilities in the prior period[119](index=119&type=chunk)[125](index=125&type=chunk) [Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024](index=29&type=section&id=Six%20Months%20Ended%20June%2030%2C%202025%20Compared%20to%20Six%20Months%20Ended%20June%2030%2C%202024) This section analyzes the financial performance for the six-month period, detailing changes in revenue, costs, and operating expenses - Revenue, net decreased by **$8.0 million (23.0%)** to **$26.9 million**, primarily due to a decrease in deferred revenue recognized in Q1 2025 compared to Q1 2024[126](index=126&type=chunk)[127](index=127&type=chunk) - Cost of goods sold decreased by **$8.9 million (42.2%)**, improving as a percentage of revenue from **60.2% to 45.2%**, mainly due to the impact of deferred revenue costs in 2023 being deferred to 2024, with no similar costs in 2025[126](index=126&type=chunk)[128](index=128&type=chunk) - Depreciation and amortization increased by **$7.2 million (784.4%)** to **$8.1 million**, primarily due to increased amortization of acquired contracts from the Lumio Asset Purchase Agreement[126](index=126&type=chunk)[129](index=129&type=chunk) - General and administrative expenses increased by **$6.6 million (75.4%)** to **$15.3 million**, driven by higher payroll costs, stock compensation, professional fees related to being a public company, and a **$3.2 million** bad debt reserve[126](index=126&type=chunk)[130](index=130&type=chunk) - Sales and marketing expenses decreased by **$3.2 million (29.2%)** due to a **$2.5 million** reduction in stock compensation expense and lower commissions from decreased revenue[126](index=126&type=chunk)[131](index=131&type=chunk) - Other income, net increased by **$46,792 (7.1%)**, influenced by a decrease in the gain on fair value of warrant liabilities and a decrease in interest expense[126](index=126&type=chunk)[132](index=132&type=chunk) [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) This section assesses the company's cash position, cash flow activities, and future capital requirements Cash and Cash Equivalents | Period | Amount | | :-------------------- | :----------- | | June 30, 2025 | $68,691 | | December 31, 2024 | $5,634,115 | - Net cash used in operating activities decreased by **$7.8 million** to **$(4.5) million** for the six months ended June 30, 2025, primarily due to positive cash flows from accounts receivable, prepaids, accounts payable, and contract liabilities, offset by increased net loss and lower stock compensation[139](index=139&type=chunk)[140](index=140&type=chunk) - Net cash used in investing activities increased to **$(0.8) million** for the six months ended June 30, 2025, mainly due to purchases of property and equipment[139](index=139&type=chunk)[141](index=141&type=chunk) - Net cash (used in) provided by financing activities shifted from **$10.0 million** provided in 2024 to **$(0.2) million** used in 2025, primarily due to cash acquired from the business combination in 2024 not recurring[139](index=139&type=chunk)[142](index=142&type=chunk) - The proceeds from the Heliogen business combination are expected to meet business needs for the next twelve months, but additional debt or equity financing may be required for future growth[137](index=137&type=chunk) - Current indebtedness includes approximately **$2.5 million** in trade-credit with solar equipment distributors and **$0.6 million** in debt on service trucks and vehicles[143](index=143&type=chunk) [Non-GAAP Financial Measures](index=31&type=section&id=Non-GAAP%20Financial%20Measures) This section defines and reconciles non-GAAP financial measures used by management to evaluate performance [Contribution Profit and Contribution Margin](index=32&type=section&id=Contribution%20Profit%20and%20Contribution%20Margin) This section defines contribution profit and margin, explaining their use in evaluating financial performance and resource allocation - Contribution profit is defined as revenue, net less direct costs of revenue, commissions expense, and depreciation and amortization; contribution margin is the ratio of contribution profit to revenue, net[147](index=147&type=chunk) - These metrics are used by management to understand financial performance, efficiency, evaluate pricing strategy, and allocate resources[147](index=147&type=chunk) Contribution Profit and Margin (Six Months Ended June 30) | Metric | 2025 | 2024 | | :------------------ | :----------- | :----------- | | Total Contribution profit | $(34,390) | $5,237,435 | | Contribution margin | (0.1)% | 15.0% | [Adjusted EBITDA](index=33&type=section&id=Adjusted%20EBITDA) This section defines Adjusted EBITDA and its use as an internal performance measure for comparative analysis - Adjusted EBITDA is defined as net income (loss) before interest, taxes, depreciation, amortization, other income/expenses, and stock compensation, adjusted to exclude merger and acquisition expenses[149](index=149&type=chunk) - It is used as an internal performance measure to allow for a more relevant comparison of results to other companies by excluding non-cash and non-recurring charges[149](index=149&type=chunk) Adjusted EBITDA and Margin (Six Months Ended June 30) | Metric | 2025 | 2024 | | :------------------ | :----------- | :----------- | | Adjusted EBITDA | $(4,953,383) | $(199,531) | | Adjusted EBITDA margin | (18.4)% | (0.6)% | [Critical Accounting Estimates](index=33&type=section&id=Critical%20Accounting%20Estimates) This section confirms no material changes to critical accounting policies and estimates since the prior annual report - There have been no material changes to critical accounting policies and estimates since the Annual Report on Form 10-K for the year ended December 31, 2024[150](index=150&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=33&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) As a smaller reporting company, Zeo Energy Corp. is not required to provide quantitative and qualitative disclosures about market risk [Item 4. Controls and Procedures](index=33&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were ineffective due to material weaknesses, though financial statements are fairly presented - Disclosure controls and procedures were not effective as of June 30, 2025, due to material weaknesses that are still being remediated[152](index=152&type=chunk) - Management believes the condensed consolidated financial statements fairly represent the company's financial condition, results of operations, and cash flows[152](index=152&type=chunk) - No changes in internal control over financial reporting materially affected or are reasonably likely to materially affect internal control over financial reporting during the period[154](index=154&type=chunk) [PART II – OTHER INFORMATION](index=34&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) This part includes disclosures on legal proceedings, risk factors, equity sales, defaults, and other relevant information [Item 1. Legal Proceedings](index=34&type=section&id=Item%201.%20Legal%20Proceedings) The company reported no legal proceedings - No legal proceedings were reported[156](index=156&type=chunk) [Item 1A. Risk Factors](index=34&type=section&id=Item%201A.%20Risk%20Factors) This section references the Annual Report for risk factors and highlights new risks related to the Heliogen acquisition and integration - Substantial costs incurred in connection with the Heliogen Mergers could adversely affect financial condition and results of operations[160](index=160&type=chunk) - Inability to effectively manage and integrate Heliogen's business could harm the company's reputation and operating results[162](index=162&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=35&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities or use of proceeds - No unregistered sales of equity securities or use of proceeds were reported[163](index=163&type=chunk) [Item 3. Defaults Upon Senior Securities](index=35&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities - No defaults upon senior securities were reported[164](index=164&type=chunk) [Item 4. Mine Safety Disclosures](index=35&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Mine Safety Disclosures are not applicable to the company[165](index=165&type=chunk) [Item 5. Other Information](index=35&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarterly period ended June 30, 2025 - No directors or officers adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter[166](index=166&type=chunk) [Item 6. Exhibits](index=36&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed as part of, or incorporated by reference into, the Form 10-Q, including key agreements, corporate documents, and certifications - Key exhibits include the Agreement and Plan of Merger and Reorganization (Heliogen), Certificate of Incorporation, Bylaws, and certifications from the Principal Executive Officer and Principal Financial Officer[168](index=168&type=chunk) [SIGNATURES](index=37&type=section&id=SIGNATURES) This section contains the official signatures of the company's executive and financial officers, certifying the report - The report was signed by Timothy Bridgewater, Chief Executive Officer, and Cannon Holbrook, Chief Financial Officer, on August 12, 2025[173](index=173&type=chunk)

Zeotech (ZEO) Update Summary Company Overview - **Company**: Zeotech (ZEO) - **Industry**: Mining and Materials, specifically focusing on kaolin production Key Points from the Call DSO Offtake Agreement - Zeotech announced a significant DSO offtake agreement with MSI, projected to generate approximately **$200 million** in revenue over the first five years [3][31] - The agreement is legally binding and includes fixed price, terms, conditions, and volumes [5][6] - Expected EBITDA from this agreement is estimated to be between **$10 million to $12 million** annually starting early next year [4][8] - The capital expenditure required to initiate this business is around **$7 million**, which is relatively low compared to the expected revenue [8][14] Business Model and Synergies - The DSO agreement is not the core business but will support the main project, Auspolz, by providing necessary funding for capital expenditures and road improvements [9][12] - The DSO material is unique due to its high purity and does not require refining, making it competitive against other products [22][23] - The DSO includes two types of material: low iron DSO (150,000 tons/year) and a higher value cosmetic grade (starting at 10,000 tons/year) [15][16] Operational Logistics - The Tundurin deposit is located approximately **200 km** from Thunderbird Port, with transportation costs around **$40 per ton** [27] - Bundaberg Port has recently invested over **$20 million** in bulk minerals loading systems, which will facilitate the shipping process [28] Future Plans and Auspolz Project - Zeotech is moving into the definitive feasibility study phase for the Auspolz project, with positive feedback from various concrete companies on its applications [34][35] - A significant concrete pour demonstration is planned, involving about **90 cubic meters** of concrete, to showcase Auspolz's performance [36][37] - The Auspolz project has the potential to significantly reduce carbon emissions, aligning with government decarbonization goals [40][41] Market Opportunities - There is strong interest from both domestic and international markets for Auspolz, with potential orders already in place [52][54] - The company is exploring offshore opportunities while maintaining a focus on the Australian market [52][53] Regulatory and Community Support - Zeotech has a fully granted mining lease and is working on final permits for road upgrades, with local council support for job creation [56][59] - The project is expected to create approximately **140 new regional jobs** [58] Conclusion - Zeotech has successfully secured a major offtake agreement, positioning itself for strong revenue growth and operational success in the near future. The company is focused on advancing its core business, Auspolz, while leveraging the DSO agreement to enhance its financial and operational capabilities [61][62]

Core Viewpoint - Zeo Energy Corp. has successfully completed the acquisition of Heliogen, Inc., enhancing its capabilities in clean energy technology solutions [1][4]. Group 1: Acquisition Details - The acquisition of Heliogen was executed entirely through shares of Zeo Energy's Class A common stock, with Zeo receiving approximately $13.6 million in net cash from Heliogen at closing [4][6]. - Heliogen has ceased trading on the OTCQX as it has become a subsidiary of Zeo Energy as of August 8, 2025 [6]. Group 2: Strategic Plans - Zeo Energy intends to utilize Heliogen's technology, brand, and expertise to create a division focused on long-duration energy generation and storage, particularly for commercial and industrial applications, including AI and cloud computing data centers [2][3]. - The acquisition is expected to establish a comprehensive clean energy platform that spans residential, commercial, and utility-scale markets, supported by Zeo's internal financing capabilities and domain expertise [2][3]. Group 3: Company Background - Zeo Energy is a Florida-based provider of residential solar and energy efficiency solutions, focusing on high-growth markets with limited competition [8]. - Heliogen specializes in renewable energy technology, offering cost-effective, low-carbon energy production solutions by integrating solar technologies with thermal systems and storage expertise [9].

Zeotech (ZEO) Conference Summary Company Overview - **Company**: Zeotech (ZEO) - **Industry**: Concrete and construction materials - **Project**: Auspos project aimed at decarbonizing the concrete industry Key Points and Arguments 1. **Market Opportunity**: Concrete is the second most widely used material globally, with approximately three tons per person, presenting a significant opportunity for innovation in production methods [4][10] 2. **Product Introduction**: Auspos is a high reactivity meta choline that can replace up to 50% of cement in concrete, enhancing performance while significantly reducing carbon emissions [9][10] 3. **Environmental Impact**: The use of Auspos can lead to an 80% reduction in carbon emissions compared to traditional cement, with the potential to eliminate 230,000 tons of carbon annually from one production train [10][39] 4. **Production Capacity**: Initial plans include a nameplate capacity of 300,000 tons per year, with potential to double this with additional production trains [12][13] 5. **Financial Metrics**: The project is projected to generate approximately $1 billion in after-tax cash flow over a 20-year mine life, with an EBITDA of $1.6 billion and an NPV exceeding $400 million [15] 6. **Job Creation**: The project is expected to create around 140 new jobs in the regional area [15] 7. **Resource Availability**: Zeotech has a mining lease for 20 million tons of material, with only 5% of total land holdings explored, indicating a long-term supply capability [26][28] 8. **Simplicity in Processing**: The production process is straightforward, requiring no refining, which minimizes costs and carbon footprint compared to traditional methods [21][23] 9. **Market Demand**: There is a significant demand for decarbonization in the concrete industry, driven by government regulations and the need to reduce carbon emissions [35][36] 10. **Strategic Partnerships**: Zeotech has signed an MOU with Holcim, a major player in the building products industry, indicating strong interest and potential for collaboration [38] Additional Important Information - **Location**: The production site is planned near the Port of Bundaberg, which is advantageous for logistics and accessibility [19][20] - **Future Plans**: The company is currently working on a Definitive Feasibility Study (DFS) and aims to start shipping Direct Shipping Ore (DSO) by Q1 next year, with full production of Auspos expected by 2029 [43] - **Government Interest**: The project aligns with government initiatives to reduce carbon emissions, potentially opening avenues for funding and support [40] This summary encapsulates the critical insights from the Zeotech conference, highlighting the company's innovative approach to revolutionizing concrete production while addressing environmental concerns.

The Presentation Materials also do not constitute or form part of any invitation, offer for sale or subscription or any solicitation for any offer to buy or subscribe for any securities, nor shall they or any part of them form the basis of or be relied upon in connection therewith or act as any inducement to enter into any contract or commitment with respect to securities. In particular, these Presentation Materials do not constitute an offer to sell or a solicitation to buy securities in the United States ...

Core Viewpoint - Zeo Energy Corp. has been included in the Russell Microcap Index, marking a significant milestone for the company as it continues to enhance its operational capabilities and expand through acquisitions [1][3]. Company Overview - Zeo Energy Corp. is a Florida-based provider of residential solar and energy efficiency solutions, focusing on high-growth markets with limited competition [5]. - The company aims to help customers reduce energy bills and promote sustainability through its vertically integrated offerings [5]. Index Inclusion Details - The Russell Microcap Index includes the 4,000 largest US stocks ranked by market capitalization, and membership lasts for one year [2]. - Inclusion in the Russell Microcap Index provides automatic inclusion in relevant growth and value style indexes, which are widely utilized by investment managers and institutional investors [2][3]. Market Impact - Russell indexes serve as benchmarks for approximately $10.6 trillion in assets as of June 2024, indicating the significance of Zeo's inclusion for attracting broader investment community attention [3].