VIA RENEWABLES(VIASP) - 2025 Q4 - Annual Report

Financial Performance - Bad debt expense for the year ended December 31, 2025, was $1.3 million, or 0.3% of retail revenues[67] - The net loss on non-trading derivative instruments was $(4.4) million for the year ended December 31, 2025, compared to a gain of $28.4 million for 2024[340] - The bad debt expense for the year ended December 31, 2025, was approximately 0.5% of non-POR market retail revenues[344] Customer Concentration - The largest customer accounted for less than 1% of total retail energy sales for the year ended December 31, 2025[68] Market Risks - Approximately $4.5 million of total exposure of $5.8 million was with a non-investment grade counterparty or not secured with collateral as of December 31, 2025[69] - The company has engaged in risk management policies to address market risks related to commodity prices and interest rates[338] Revenue Composition - Natural gas accounted for approximately 33% of retail revenues for the year ended December 31, 2025, indicating high seasonality in cash flows[77] - Approximately 61% of retail revenues as of December 31, 2025, were derived from territories where credit risk was with local regulated utility companies[342] Employment and Workforce - The company employed 162 full-time employees as of December 31, 2025, with a gender distribution of approximately 54% male and 46% female[88][89] Regulatory Environment - The company is subject to regulatory changes, such as Maryland SB1, which imposes new green energy requirements and pricing restrictions[80] - The company partially relies on lead generators for telemarketing sales, facing increasing regulatory restrictions[82] Future Expectations - The company expects significant seasonality impacts on cash flows and income to continue in future periods[78] Cybersecurity - The company has not experienced any material loss related to cyber-attacks during 2025[70] Debt and Interest Rates - At December 31, 2025, $120.0 million of variable rate indebtedness was outstanding under the Senior Credit Facility, with a 1% increase in interest rates resulting in an additional annual interest expense of approximately $1.2 million[347] - During the year ended December 31, 2025, the company paid $9.0 million in dividends to holders of Series A Preferred Stock, with a 1.0% increase in interest rates potentially resulting in additional dividends of $0.8 million[349] Derivative Positions - As of December 31, 2025, the Gas Non-Trading Fixed Price Open Position was a short position of 132,692 MMBtu, with a 10% increase in market prices potentially increasing the fair market value by less than $0.1 million[341] - The Electricity Non-Trading Fixed Price Open Position was a short position of 166,378 MWhs, with a 10% increase in forward market prices potentially decreasing the fair market value by $1.0 million[341]