Financial Performance - The Company reported no revenue for the three and six months ended June 30, 2025, compared to $0.094 million and $0.187 million for the same periods in 2024, representing a 100% decrease[230]. - The total operating income for the three months ended June 30, 2025, was $8.235 million, compared to an operating loss of $2.990 million in 2024, indicating a significant improvement[230]. - The net income for the three months ended June 30, 2025, was $5.234 million, compared to a net loss of $6.837 million in the same period of 2024[230]. - The Company’s total operating expenses for the three months ended June 30, 2025, were $3.689 million, compared to $2.781 million in 2024, reflecting an increase of 32.7%[230]. - The Company’s total comprehensive income for the three months ended June 30, 2025, was $5.965 million, compared to a comprehensive loss of $6.325 million in 2024[230]. - The Company’s interest expense for the three months ended June 30, 2025, was $1.250 million, compared to $0.809 million in 2024, indicating an increase of 54.5%[230]. - The Company reported a loss of $33,700 related to the rescinded LiiON asset purchase agreement for the three months ended June 30, 2025[248]. - Net income for continuing operations increased by $10 million for the three months and $12.1 million for the six months ended June 30, 2025, primarily due to a gain on sale of subsidiaries totaling $15.5 million[256][257]. - Total debt decreased from $30.3 million as of December 31, 2024, to $10.7 million as of June 30, 2025, reflecting a significant reduction in liabilities[260]. - The company eliminated approximately $115 million in debt related to the sale of Solis and its subsidiaries, improving shareholders' equity by approximately $59 million[262]. Revenue and Expense Trends - The company expects to generate approximately 15% of annual revenues in Q1, 35% in Q2, 35% in Q3, and 15% in Q4 due to seasonal variations in solar energy production[218]. - Cost of revenues for continuing operations decreased by $159,000 (100%) for the three months and $174,000 (100%) for the six months ended June 30, 2025, compared to the same period in 2024, due to the sale of operating parks in the United States[237]. - Cost of revenues for discontinued operations decreased by $1.6 million (100%) for the three months and $2.7 million (100%) for the six months ended June 30, 2025, due to the sale of all operating parks in Poland, the Netherlands, and Romania[238]. - Selling, general and administrative expenses for continuing operations increased by $908,000 (33%) for the three months ended June 30, 2025, primarily due to non-cash stock compensation costs of approximately $2.1 million[239]. - Selling, general and administrative expenses for continuing operations decreased by $709,000 (12%) for the six months ended June 30, 2025, compared to the same period in 2024[240]. - Total selling, general and administrative expenses for the period decreased by $1.1 million (23%) for the three months and $6.4 million (55%) for the six months ended June 30, 2025, compared to the same periods in 2024[239][240]. - Interest expense for continuing operations decreased by $1.1 million (53%) for the six months ended June 30, 2025, compared to the same period in 2024[253]. - Total interest expense, other income, and other expense for discontinued operations decreased by $2.0 million (43%) for the three months and $6.6 million (62%) for the six months ended June 30, 2025, compared to the same period in 2024[254]. Financing and Capital Structure - The company is actively seeking corporate and project-level financing to support its transatlantic business plan and has taken steps to eliminate significant debt[200]. - The company plans to finance acquisitions and growth capital expenditures primarily through long-term non-recourse debt and retained cash flows from operations[258]. - The company has accessed capital markets multiple times in 2024 and 2025 for long-term project debt and corporate loans, which is crucial for its growth strategy[224]. - The company is currently addressing going concern issues and is working with global banks to secure necessary project financing[265]. - As of June 30, 2025, the company had cash and cash equivalents of $161,000, a significant increase from $10,000 as of December 31, 2024[260]. Operational Changes and Discontinued Operations - The Company’s discontinued operations reported a revenue decrease of $3.8 million for the three months ended June 30, 2025, due to the sale of all operating parks in Poland, the Netherlands, and Romania[233]. - The Company’s nameplate capacity for renewable energy facilities in the United States was 3.8 MW (DC) in 2024, which is now zero in 2025 due to discontinued operations[228]. - Net cash used in discontinued operating activities decreased by $6.5 million due to the sale of operating parks in Poland, the Netherlands, and Romania[294]. - Net cash used in discontinued financing activities decreased by $80.5 million due to the sale of operating parks in 2024[297]. Strategic Focus and Market Position - The company reported a focus on utility-scale renewable energy projects, including solar parks and battery storage, aiming for comprehensive clean energy solutions across Europe and America[194]. - The company aims to expand its portfolio through acquisitions of utility-scale clean energy projects and strategic partnerships to enhance revenue streams[212]. - The company anticipates growth opportunities in renewable energy generation driven by decreasing technology costs and the need for hybrid energy solutions[223]. - The company’s competitive strengths include a fully integrated clean energy provider model and a flexible, technology-agnostic strategy that supports cost optimization[201][207]. Accounting and Compliance - The Company reported no changes to critical accounting estimates since the filing of the 2024 Annual Report[298]. - There have been no disagreements with accountants on accounting and financial disclosure[299]. - The company’s common stock was suspended from trading on Nasdaq due to non-compliance with listing requirements[264].
Clean Earth Acquisitions (CLIN) - 2025 Q2 - Quarterly Report