Financing and Investment - The company entered into a Securities Purchase Agreement, selling 5.2 million, are exercisable for 10 years at an exercise price of 11.2 million in cash and cash equivalents, down from 9.5 million as of December 31, 2024[385]. Business Operations and Strategy - In 2024, the company announced new project awards for delivery of up to 1 gigawatt of tracker technology with multiple energy partners[31]. - The company operates primarily in the U.S. and Australia, with 66% of spending on partners located in the U.S. and 11% in China[45]. - The company aims to increase market share in the U.S. and expand internationally, enhancing tracker product offerings and reducing operating costs[53]. - The company is focused on reducing reliance on China and enhancing its U.S.-based supply chain through investments like Alpha Steel[59]. - The company launched its SUNOPS and SUNPATH software to optimize tracker performance and maximize energy production[37]. - The company has expanded its Voyager tracker portfolio to accommodate ultra-large-format modules and improved wind speed tolerance up to 150 miles per hour[35]. - The company competes with major players in the tracker industry, including Array Technologies and GameChange Solar, focusing on product performance and total cost of ownership[77]. Financial Performance - During the year ended December 31, 2024, four customers contributed approximately 71% of total revenue, a significant increase from 72% in 2023[387]. - At December 31, 2024, three customers accounted for approximately 74% of total accounts receivable, compared to four customers accounting for 86% in 2023[386]. - The company is exposed to credit risks within the solar industry, necessitating ongoing evaluation of credit loss allowances[388]. Research and Development - The company reported research and development costs of $5.9 million for the year ended December 31, 2024, which includes employee salaries and benefits[79]. - The company holds 49 patents in the United States and 4 in Australia, with issued U.S. patents expected to expire between 2027 and 2043[81]. Environmental and Social Responsibility - The company has maintained ISO 14001:2015 certification since 2018, demonstrating its commitment to environmental management[62]. - The company has invested in diversifying its supplier base to mitigate climate-related risks and enhance operational resilience[74]. - The company’s workforce includes 164 males and 38 females, reflecting a commitment to diversity[82]. - The company has implemented a Women's Innovation Network to support the advancement of women in the workplace[84]. - The company’s Scope 1 emissions are primarily from a fleet of light-duty trucks, while Scope 2 emissions are associated with purchased electricity[63]. Workforce and Governance - As of December 31, 2024, the total headcount was 202, a decrease from 213 in 2023, with notable reductions in operations and support[82]. - The board of directors consists of seven members, including five independent members, ensuring governance and oversight[70]. Market Trends - The Inflation Reduction Act of 2022 provides a 30% investment tax credit for solar projects starting construction by the end of 2032, declining thereafter[48]. - Solar generation in the U.S. is projected to increase by 34% in 2025 and 17% in 2026 due to capacity additions[51]. Supply Chain and Material Risks - The company does not procure raw materials directly but is subject to indirect risks from fluctuating prices of commodities like steel and aluminum[389].
FTC Solar(FTCI) - 2024 Q4 - Annual Report