Financial Performance - Total revenue for Q2 2024 was $14.7 million, a 51% decrease from $30.1 million in Q2 2023, primarily due to higher interest rates affecting residential solar direct sales[6] - Gross profit for Q2 2024 decreased to $4.4 million (29.8% of total revenue) from $5.6 million (18.7% of total revenue) in Q2 2023, driven by decreased sales but improved operational efficiencies[6] - Net loss for Q2 2024 was $1.3 million (8.8% of total revenue), compared to net income of $0.8 million (2.7% of total revenue) in Q2 2023, largely due to stock compensation expenses[7] - Adjusted EBITDA for Q2 2024 was $0.7 million (4.6% of total revenue), down from approximately $1.3 million (4.4% of total revenue) in Q2 2023, reflecting decreased gross profit and increased stock compensation[7] - Total revenue for the first six months of 2024 was $34.6 million, a 29% decrease from $48.8 million in the same period of 2023, attributed to higher interest rates[4] - Gross profit for the first six months of 2024 decreased to $6.0 million (17.3% of total revenue) from $8.6 million (17.7% of total revenue) in the same period of 2023[4] - Net loss for the first six months of 2024 was $3.2 million (9.2% of total revenue), compared to net income of $2.4 million (4.9% of total revenue) in the same period of 2023[4] - Adjusted EBITDA for the first six months of 2024 was a loss of $0.1 million (0.3% of total revenue), down from $3.4 million (6.9% of total revenue) in the same period of 2023[5] - Net loss for 2024 was $3,181,873 compared to a net income of $2,400,187 in 2023[18] Operational Metrics - Total operating expenses for the six months ended June 30, 2024, were $16,907,397, a decrease from $29,250,949 in the prior year[17] - Net cash used in operating activities was $12,338,008, a significant decrease from $1,849,251 in the previous year[18] - Total depreciation and amortization for 2024 was $919,542, slightly down from $922,165 in 2023[18] - The company incurred transaction costs of $3,269,039, with no such costs reported in the previous year[18] - Preferred dividends for 2024 totaled $8,224,091, with no preferred dividends reported in 2023[18] - Cash paid for interest increased to $70,284 from $37,851 in 2023[18] Assets and Liabilities - Total current assets increased to $17,895,800 as of June 30, 2024, from $16,233,331 as of December 31, 2023[15] - Total liabilities decreased to $12,205,927 as of June 30, 2024, from $17,540,167 as of December 31, 2023[15] - Cash and cash equivalents decreased to $5,342,120 as of June 30, 2024, from $8,022,306 as of December 31, 2023[15] - Accounts receivable increased to $7,207,854 as of June 30, 2024, compared to $2,905,205 as of December 31, 2023[15] - The current portion of long-term debt increased slightly to $420,745 as of June 30, 2024, from $404,871 as of December 31, 2023[15] - Total stockholders' equity showed a significant decline to $(51,117,913) as of June 30, 2024, from $30,591,065 as of December 31, 2023[15] Cash Flow and Financing - Cash and cash equivalents at the end of the period were $5,342,120, up from $3,413,334 in 2023[18] - Proceeds from the issuance of convertible preferred stock amounted to $10,277,275, with no such transactions in 2023[18] - Net cash provided by financing activities was $9,988,651, compared to $79,986 in 2023[18] Strategic Initiatives - The company plans to reignite sales efforts and pursue strategic M&A opportunities as macroeconomic pressures ease[3] - Recent market launches in Ohio and Illinois have shown encouraging initial results, with plans for further expansion[2]
ESGEN Acquisition (ESAC) - 2024 Q2 - Quarterly Results