Financial Performance - Sales for the three months ended March 31, 2025, were $12.64 million, a decrease of 4.4% compared to $13.22 million for the same period in 2024[15]. - Gross profit for Q1 2025 was $4.43 million, down from $4.81 million in Q1 2024, reflecting a decrease of 7.2%[15]. - Operating loss for the three months ended March 31, 2025, was $2.17 million, slightly improved from a loss of $2.18 million in Q1 2024[15]. - Net loss attributable to common shareholders for Q1 2025 was $3.50 million, compared to a net loss of $10.12 million in Q1 2024, indicating a significant reduction in losses[15]. - Basic net loss per share for Q1 2025 was $106.71, compared to $38,414.84 for Q1 2024, reflecting the impact of reverse stock splits[15]. - Total revenues for SUNation were $9,544,554 in Q1 2025, down from $9,752,970 in Q1 2024, reflecting a decrease of 2.1%[74]. - For the three months ended March 31, 2025, SUNation reported residential contract revenues of $7,896,122, a decrease of 2.9% from $8,131,708 in the same period of 2024[74]. - Commercial contract revenues increased to $1,275,888 in Q1 2025 from $997,193 in Q1 2024, representing a growth of 28%[74]. - Net loss before income taxes for Q1 2025 was $(3,481,817), compared to a net income of $1,208,813 in Q1 2024, highlighting a significant decline in profitability[152]. - Selling, general and administrative expenses for Q1 2025 totaled $6,039,298, compared to $6,629,027 in Q1 2024, indicating a reduction in overhead costs[151]. Assets and Liabilities - Total assets decreased to $44.43 million as of March 31, 2025, from $45.71 million as of December 31, 2024, representing a decline of approximately 2.8%[10]. - Total current liabilities decreased to $20.27 million as of March 31, 2025, from $27.16 million as of December 31, 2024, a reduction of approximately 25.5%[10]. - The company reported cash and cash equivalents of $1.45 million as of March 31, 2025, up from $839,268 as of December 31, 2024, an increase of approximately 72.5%[10]. - Inventories decreased to $2.51 million as of March 31, 2025, from $2.71 million as of December 31, 2024, a decline of approximately 7.2%[10]. - The balance of accumulated deficit as of March 31, 2025, was $(46,395,478), an increase from $(25,850,588) as of March 31, 2024[18]. Capital and Financing Activities - The company raised $9,473,398 from the issuance of common stock and pre-funded warrants under a registered direct offering during the three months ended March 31, 2024[22]. - The company raised approximately $20.0 million in aggregate gross proceeds from a securities offering, with $5 million from the second tranche closing on April 7, 2025[168]. - The company issued 9,825 shares of common stock under a registered direct offering, netting $8,481,892[17]. - The At the Market Offering Agreement allows the Company to sell up to $10,000,000 in common stock, with 762 shares sold for gross proceeds of $362,269 during the three months ended March 31, 2025[136]. - The Company executed a reverse stock split at a 1-for-50 ratio on October 1, 2024, reducing outstanding shares from 67,260,696 to 1,344,841[33]. - A subsequent reverse stock split at a 1-for-200 ratio was approved on April 3, 2025, reducing outstanding shares from 672,799,910 to 3,406,614[39]. - The Company increased its authorized shares to 1,000,000,000 as part of the April 2025 reverse stock split approval[36]. Debt and Interest Obligations - The loan payable to Hercules Capital, Inc. was originally $7,500,000, with an interest rate of 10%, and was due on December 31, 2024, after amendments to the Term Loan Agreement[80][81]. - The Term Loan Agreement was amended on May 31, 2023, resulting in a remaining balance of $3,375,742, with a new maturity date of June 2, 2027, and an interest rate of 10%[82]. - The Company recorded a loss on extinguishment of debt of $455,308 upon full repayment of the Term Loan on March 3, 2025[85]. - The Company recorded interest and accretion expense of $33,312 for the three months ended March 31, 2025, compared to $0 for the same period in 2024[105]. - Interest paid increased to $1,077,033 from $416,504 in the previous year[22]. Strategic Initiatives - The company’s strategy focuses on acquiring and integrating leading local and regional solar, storage, and energy services companies nationwide[26]. - The company aims to expand its operations by acquiring and integrating leading local and regional solar, storage, and energy services companies nationwide[26]. - The company plans to raise capital through public or private equity offerings, debt financings, and/or strategic alliances[166]. Accounting and Compliance - The Company is currently evaluating the impact of new accounting standards issued by the FASB, including ASU 2023-06 and ASU 2023-09, which may affect its consolidated financial statements[69][71]. - The effective income tax rate from continuing operations was (0.4%) for the three months ended March 31, 2025, differing from the federal tax rate of 21% due to state income taxes[145]. - The Company’s segment structure now includes distinct reportable segments for SUNation and Hawaii Energy Connection (HEC) due to changes in economic forecasts[148]. Market and Operational Challenges - The company received a Nasdaq delisting notice on April 11, 2025, due to not maintaining a minimum closing bid price of $1.00 per share[172]. - The company has substantial doubt about its ability to continue as a going concern, requiring additional capital resources[165].
Pineapple Energy (PEGY) - 2025 Q1 - Quarterly Report