Financial Performance - Consolidated sales increased to $27,522,099 in 2022 from $38,162 in 2021, primarily due to the merger and acquisitions during 2022 [169]. - Residential revenue accounted for $25,375,067 in 2022, while commercial revenue was $1,673,403, and service revenue was $412,388 [170]. - Consolidated gross profit rose to $7,377,445 in 2022 compared to $38,162 in 2021 [170]. - Net loss attributable to common shareholders was $27,216,132 or $(2.99) per diluted share in 2022, compared to a net loss of $6,235,550 or $(2.03) per diluted share in 2021 [173]. Operating Expenses - Consolidated operating expenses surged 263.8% to $17,826,124 in 2022, driven by $7,160,670 in costs from acquired businesses [171]. Cash Flow and Liquidity - As of December 31, 2022, the company had approximately $7,923,244 in cash and liquid investments, a significant increase from $18,966 at the end of 2021 [175]. - Cash flow used in operating activities was approximately $7,577,199 in 2022, a significant increase from $811,017 used in 2021 [178]. - Net cash provided by financing activities was $15,912,117 in 2022, primarily from a $32,000,000 PIPE transaction [180]. Acquisitions and Liabilities - The Company paid $2.39 million in cash for the SUNation acquisition and entered into a Short-Term Note and a Long-Term Note [183]. - The estimated liability for Contingent Value Rights (CVRs) as of December 31, 2022, was $7,402,714, representing the fair value of legacy CSI assets to be distributed [186]. - The proceeds from CSI's pre-merger business are not available to fund the working capital needs of the post-merger company [186]. Financial Concerns - The Company forecasts insufficient cash flow to repay the Short-Term Note, raising substantial doubt about its ability to continue as a going concern [184]. - The Company seeks additional funding through public or private equity offerings, debt financings, and/or strategic alliances, but may face unfavorable terms [185]. Investments and Risk Management - As of December 31, 2022, the Company had $4,463,089 in restricted funds for the legacy CSI business and $1,272,615 for SUNation's operations [183]. - The Company has no freestanding or embedded derivatives and does not engage in contracts that cannot be designated as normal purchases or sales [190]. - The Company's investments include money market, certificates of deposit, and corporate notes, which do not expose it to material market risk [191].
Pineapple Energy (PEGY) - 2022 Q4 - Annual Report