Financial Performance - Consolidated sales increased by $4,275,250, or 29.0%, to $18,993,636 in Q3 2025 from $14,718,386 in Q3 2024, driven by a 54% increase in residential contract revenue and a 72% increase in service revenue [215]. - Gross profit rose to $7,211,685 in Q3 2025, up from $5,235,725 in Q3 2024, with gross margin increasing to 38% from 36% [216]. - The net loss for Q3 2025 was $392,975, a significant improvement from a net loss of $3,298,609 in Q3 2024, reflecting an 88.1% reduction in losses [215]. - Consolidated sales for the first nine months of 2025 increased by $3,207,525, or 7.7%, to $44,694,528 compared to the same period in 2024 [226]. - Consolidated gross profit for the first nine months of 2025 was $16,482,527, an increase of 11.1% from $14,833,527 in 2024 [228]. - Net loss for the first nine months of 2025 was $13,496,822, or $(6.19) per diluted share, compared to a net loss of $20,617,094, or $(25,596.09) per diluted share in the same period of 2024 [231]. Operating Expenses - Operating expenses increased by 9% to $7,457,416 in Q3 2025 compared to $6,842,462 in Q3 2024, with selling, general and administrative expenses rising by 12% to $6,898,041 [217]. - Selling, general and administrative expenses for the first nine months of 2025 were $19,381,068, a slight increase of 0.3% from $19,321,037 in 2024 [229]. - Selling, general and administrative expenses remained flat at $3,117,988 in the first nine months of 2025, representing 25% of sales, compared to 27% in the same period of 2024 [238]. Revenue Growth - The overall kilowatts installed on residential projects increased by 52%, with revenue per residential installation increasing by 25% in Q3 2025 compared to Q3 2024 [215]. - SUNation NY revenue increased by 22%, or $2,375,056, to $13,014,951 in Q3 2025, driven by a 52% increase in residential contract revenue [220]. - HEC sales increased by 47%, or $1,900,194, to $5,978,685 in Q3 2025, with residential contract sales up 59% [223]. - HEC sales for the first nine months of 2025 increased by 8%, or $951,683, to $12,314,174, with residential contract sales up 7% [235]. - Service revenue increased by $423,382, or 77%, due to an increase in repair and replacement installations in the first half of 2025 [236]. Cash Flow and Financing - Cash used in operating activities decreased to $1,146,338 in the first nine months of 2025 from $4,393,846 in the same period of 2024 [242]. - Net cash provided by financing activities was $5,716,316 in the first nine months of 2025, significantly up from $1,183,220 in the same period of 2024 [244]. - The company raised $20.0 million in securities through a purchase agreement with institutional investors, using proceeds to pay off approximately $12.6 million in outstanding debt [247]. - The company issued a $5,486,000 Long-Term Promissory Note in connection with the SUNation NY acquisition, which was amended to extend the maturity to May 1, 2028 [245]. Other Financial Metrics - Consolidated other expenses decreased by $1,560,798 to $130,565 in Q3 2025 compared to $1,691,363 in Q3 2024, primarily due to a decrease in interest expense [218]. - Amortization expense decreased by $150,000 to $559,375 in Q3 2025 due to the write-down of a technology intangible asset [217]. - The overall price per watt on residential projects increased slightly by 2% in Q3 2025 compared to Q3 2024 [215]. - The estimated fair value of the Contingent Value Rights (CVR) liability as of September 30, 2025, was $288,948, representing the legacy assets to be distributed to CVR holders [248]. Company Outlook - The company anticipates increased customer demand for solar systems prior to the expiration of federal tax credits at the end of 2025 [215]. - Substantial doubt exists regarding the company's ability to continue as a going concern due to uncertainty around future cash flows and the need for additional funding [246]. - The company had a working capital deficit of $(1,848,119) as of September 30, 2025, compared to $(16,051,658) at December 31, 2024 [241]. Losses and Improvements - Consolidated operating loss in Q3 2025 was $245,731, significantly improved from a loss of $1,606,737 in Q3 2024 [219]. - Net loss in Q3 2025 was $392,975, or $(0.12) per diluted share, compared to a net loss of $3,563,091, or $(2,350.12) per diluted share in Q3 2024 [219].
Pineapple Energy (PEGY) - 2025 Q3 - Quarterly Report