SolarBank Corp(SUUN) - 2024 Q1 - Quarterly Report

Financial Performance - Revenue from EPC services for the three months ended March 31, 2024, was $23,435,444, a significant increase from $684,296 in the same period of 2023, representing a growth of approximately 3,329%[2] - Net income for the three months ended March 31, 2024, was $3,499,241, compared to $3,074,090 for the same period in 2023, indicating an increase of 14%[2] - The company reported a gross profit of $5,388,438 for the three months ended March 31, 2024, compared to $655,255 in the same period of 2023, marking a growth of 720%[2] - Total operating expenses for the three months ended March 31, 2024, were $3,507,796, a decrease from $3,984,319 in the same period of 2023, showing a reduction of 12%[2] - Net income for the nine months ended March 31, 2024, was CAD 5,522,702, compared to CAD 3,426,589 for the same period in 2023, representing a 61.1% increase[4] - The company reported revenues of CAD 24,074,947 for the three months ended March 31, 2024, compared to CAD 706,856 for the same period in 2023[85] Assets and Liabilities - Total assets increased to $39,456,583 as of March 31, 2024, compared to $24,969,537 as of June 30, 2023, reflecting a growth of 58%[1] - Current liabilities rose to $12,114,120 as of March 31, 2024, from $8,338,341 as of June 30, 2023, an increase of 45%[1] - The company’s retained earnings as of March 31, 2024, were $24,950,690, up from $16,392,791 as of June 30, 2023, reflecting a growth of 52%[1] - The company’s long-term debt as of March 31, 2024, totaled $3,123,786, a significant increase from $910,370 on June 30, 2023[12] - Accounts payable and accrued liabilities rose to $5,479,970 as of March 31, 2024, up from $1,542,849 on June 30, 2023, indicating increased operational liabilities[25] Shareholder Equity - Share capital increased to $8,984,448 as of March 31, 2024, from $6,855,075 as of June 30, 2023, representing a growth of 31%[1] - Total shareholders' equity as of June 30, 2023, was CAD 16,631,196, an increase from CAD 16,392,791 as of March 31, 2023[3] - The company’s total equity increased to CAD 27,342,463 as of March 31, 2024, from CAD 24,950,691[3] - The company’s total shareholders' equity rose to CAD 27,342,463 as of March 31, 2024, up from CAD 16,631,196 as of June 30, 2023[82] Cash Flow and Investments - Cash provided by operating activities for the nine months ended March 31, 2024, was CAD 10,919,336, significantly higher than CAD 4,653,394 in the prior year[4] - The balance of cash and cash equivalents at the end of March 31, 2024, was CAD 6,091,112, up from CAD 5,630,599 at the end of March 31, 2023[4] - The company acquired property, plant, and equipment for CAD 42,908 during the nine months ended March 31, 2024[4] - The company acquired limited partnership units of Solar Flow-Through Limited Partnerships for a total purchase price of CAD 2,465,000 on July 5, 2023[73] Development and Projects - The company reported a significant increase in development assets to $7,881,168 as of March 31, 2024, compared to $1,106,503 as of June 30, 2023, an increase of 612%[1] - The total additions to development costs for the period ending March 31, 2024, amounted to $2,952,085, compared to $455,376 for the previous period[22] - The company’s inventory as of March 31, 2024, consists of development costs for solar projects, reflecting ongoing investment in renewable energy[21] - The company recognized EPC services revenue of $1,340,765 CAD ($1,082,345 USD) from the US1 & VC1 projects upon reaching permission to operate in December 2022[56] Acquisitions and Ownership - The company acquired a 67% membership interest in a tax equity structure for solar facilities on June 20, 2023, with a loan value of $549,061 (USD 414,699) and an effective interest rate of 9%[39] - The company acquired 67% of Solar Alliance DevCo for a purchase consideration of $574,824, recognizing an impairment loss of $724,205 (USD $539,204) from the remeasurement of the promissory note[58][59] - The acquisition of OFIT GM and OFIT RT involved a cash consideration of $432,510 and 278,875 common shares, with the projects having a combined capacity of 2.5 MW[64] Risk Management - The company has assessed credit risk related to trade and other receivables as low, with utility deposits made to local governments with high creditworthiness[44] - The company maintains adequate reserves and banking facilities to manage liquidity risk, ensuring it can meet financial obligations as they become due[48] - The outstanding accounts receivable balance is concentrated, with a few large customers representing a majority of the value, including Customer E at 72% of accounts receivable[45][47] - The company has no significant interest rate risk as it does not carry debt at a variable rate[49] Corporate Changes - The company changed its name from Abundant Solar Energy Inc. to SolarBank Corporation on October 7, 2022, and began trading on the Nasdaq Global Market under the symbol "SUUN" on April 8, 2024[5] - The company adopted new accounting standards effective July 1, 2023, which do not impact the current financial statements but may affect future reporting[12]