Financial Performance - The Company reported revenues of $0 for the three months ended March 31, 2025, a decrease of $2.3 million (100%) compared to $2.3 million in the same period in 2024[202]. - The total operating expenses for the three months ended March 31, 2025, were $1.97 million, a decrease of $1.23 million (38.5%) compared to $3.2 million in 2024[200]. - The Company incurred a net loss of $180,000 for the three months ended March 31, 2025, compared to a net loss of $6.58 million in the same period in 2024[200]. - Selling, general, and administrative expenses for the three months ended March 31, 2025, were $1.49 million, a decrease of $1.68 million (54%) compared to $3.11 million in 2024[208]. - The Company experienced a significant decrease in revenues from discontinued operations, totaling $2.2 million for the three months ended March 31, 2025, compared to $2.2 million in 2024[203]. - The Company reported a gain of $3.589 million from the sale of continuing operations for the three months ended March 31, 2025, compared to no gain in the same period in 2024[218]. - Net loss for continuing operations decreased by $4.9 million for the three months ended March 31, 2025, primarily due to a decrease in SG&A expenses and a gain from the sale of subsidiaries[222]. - The Company’s basic and diluted earnings per share for continuing operations were $(0.02) for the three months ended March 31, 2025, compared to $(1.93) in 2024[200]. Revenue and Operations - The company’s revenue is primarily driven by the volume of electricity generated and sold, with long-term contracts providing price stability[185]. - The company expects seasonal variations in electricity production, with Q1 and Q4 generating approximately 15% of annual revenues each[188]. - The company anticipates that inflation and energy rate fluctuations will significantly affect its results of operations[184]. - The company aims to secure corporate and project-level financing to execute its transatlantic business plan while reducing debt through operational discontinuation[169]. - The company expects to generate stable, recurring income by owning and operating long-term contracted energy projects, enhancing shareholder value[180]. Debt and Financing - As of March 31, 2025, total debt was $10,380,000, a decrease of 65.8% from $30,344,000 as of December 31, 2024[227]. - The company eliminated approximately $115 million in debt and payables related to Solis activities, improving shareholders' equity by approximately $59 million[229]. - The company is currently quoted on an over-the-counter trading market due to non-compliance with Nasdaq listing requirements[231]. - The company is working with multiple global banks and funds to secure necessary project financing to execute its transatlantic business plan[232]. - The Company intends to finance future acquisitions and growth capital expenditures primarily through long-term non-recourse debt and retained cash flows from operations[225]. - The Company has a liquidity position that raises substantial doubt about its ability to continue as a going concern for twelve months from the issuance of the report[228]. - The company is addressing the going concern issue through various processes, including potential financing and restructuring efforts[232]. Asset Management - The combined nameplate capacity of the Company's renewable energy facilities was 43.9 MW (DC) as of March 31, 2024, with no capacity reported for 2025 due to discontinued operations[197]. - The Company sold 842 MWh of electricity in the United States for the three months ended March 31, 2024, while no sales were recorded for 2025 due to the sale of operating parks[198]. - Development costs for the three months ended March 31, 2025, decreased by $7 thousand compared to the same period in 2024, resulting in a 100% reduction[214]. - Depreciation, amortization, and accretion expenses for continuing operations increased by $60 thousand, or 85%, for the three months ended March 31, 2025, primarily due to amortization of intangible assets acquired in the LiiON transaction[216]. Strategic Focus - The company reported a focus on utility-scale renewable energy projects, including solar parks and battery storage, aiming to lead the transition to sustainable energy across Europe and America[163]. - The company’s growth strategy includes acquiring utility-scale clean energy projects and expanding into complementary market segments through M&A or partnerships[183]. - The company recognizes the need for access to capital markets to fund its growth strategy and manage commitments effectively[192]. - The Company has emphasized the importance of government policies in supporting the development and operation of renewable energy projects, which could significantly impact its financial condition[213]. Cash Flow - For the three months ended March 31, 2025, net cash provided by operating activities was $552,000, a significant increase of $1.6 million compared to a net cash used of $2,036,000 in the same period of 2024[247]. - Net cash used in discontinued operating activities decreased by $2.7 million for the three months ended March 31, 2025, attributed to the sale of operating parks in Poland, the Netherlands, and Romania[249]. - Net cash used in continuing investing activities decreased by $2.9 million for the three months ended March 31, 2025, as the Company did not pursue additional developments[250]. - Net cash provided by financing activities increased by $1.4 million for the three months ended March 31, 2025, driven by approximately $0.5 million of new debt and $0.9 million of intercompany transaction activity[251]. - Net cash used in discontinued financing activities decreased by $13.2 million for the three months ended March 31, 2025, also due to the sale of operating parks[252]. Miscellaneous - BESS LLC acquired certain assets from LiiON LLC related to its Battery Storage Business on December 11, 2024, including customer relationships and intellectual property[210]. - The asset purchase agreement was rescinded on April 29, 2025, due to undisclosed material issues and NASDAQ's delisting of the Company's equity[211]. - The Company reported no changes to critical accounting estimates since the filing of the 2024 Annual Report on Form 10-K[253]. - There have been no disagreements with accountants on accounting and financial disclosure[254].
Clean Earth Acquisitions (CLIN) - 2025 Q1 - Quarterly Report