Tigo Energy(TYGO) - 2025 Q1 - Quarterly Report

Financial Performance - Net revenue for the three months ended March 31, 2025, was $18.839 million, representing a 92.2$9.802 million in the same period of 2024[114]. - Gross profit for the same period increased to $7.173 million, a 159.3$2.766 million in 2024, with a gross margin of 38.1%[114][120]. - The increase in net revenue was primarily driven by a $8.0 million (101.2$0.7 million (49.3%) increase from the GO ESS product line[117]. Regional Performance - EMEA region net revenue increased by $5.763 million (99.6$1.981 million (72.4%), primarily due to increased demand for MLPE products in the United States[123]. - APAC region net revenue increased by $1.293 million (101.4$0.307 million (12.4%) to $2.164 million for the three months ended March 31, 2025, attributed to reduced payroll expenses from a lower headcount[124]. - Sales and marketing expenses decreased by$0.7 million or 14.9% for the three months ended March 31, 2025, compared to the same period in 2024, primarily due to reduced payroll expenses from a lower headcount[127]. - General and administrative expenses increased by $0.3 million or 6.1$310,000 or 12.8% for the three months ended March 31, 2025, compared to the same period in 2024[130]. - Income tax expense increased by $0.3 million for the three months ended March 31, 2025, primarily related to an estimated settlement of foreign tax examination[134]. Cash Flow and Financial Position - As of March 31, 2025, the company had cash and cash equivalents and marketable securities totaling$20.3 million, with negative working capital of $6.5 million[135]. - The company has a Convertible Promissory Note obligation of$50.0 million due on January 9, 2026, raising substantial doubt about its ability to continue as a going concern[136]. - Net cash used in operating activities was $530,000 for the three months ended March 31, 2025, a decrease of$10.7 million compared to the same period in 2024[143]. - Net cash used in investing activities was $3.5 million for the three months ended March 31, 2025, primarily due to the purchase of marketable securities[144]. - Net cash provided by financing activities increased by$0.6 million for the three months ended March 31, 2025, primarily due to proceeds from the company's at-the-market offering[145]. - As of March 31, 2025, $13.1 million remained available under the ATM Agreement for future offerings[140]. Strategic Plans - The company plans to expand its presence in the residential market and invest in new market opportunities internationally to facilitate revenue growth and customer diversification[111].