Financial Performance - Total revenue for Q1 2024 increased by 4% to $19.5 million compared to $18.7 million in Q1 2023[11] - Gross profit for Q1 2024 decreased by 47% to $1.8 million, representing 9.5% of net revenue, down from 18.6% in Q1 2023[11] - Net loss for Q1 2024 was $1.7 million, compared to a net income of approximately $1.6 million in Q1 2023[11] - Adjusted EBITDA for Q1 2024 resulted in a loss of $1.2 million, a decrease from a profit of approximately $2.0 million in Q1 2023[11] - The net loss for the period was $1,699,200, compared to a net income of $1,602,939 in the same quarter of 2023, indicating a significant decline in profitability[20] - The company reported a basic and diluted net loss per common unit of $1.20 for the quarter[20] Operating Expenses - Operating expenses increased to $21,102,265, up 23.2% from $17,118,006 in the prior year, primarily due to higher cost of goods sold and general administrative expenses[20] - Cash flows from operating activities showed a net cash used of $10,153,821, contrasting with a net cash provided of $1,589,777 in the prior year[22] Merger and Financing - The merger with ESGEN Acquisition Corp. was completed on March 13, 2024, with transaction expenses totaling $11.7 million[5] - Preferred equity of $15.0 million was provided by Energy Spectrum to cover merger expenses and support ongoing operations[5] - Proceeds from the issuance of convertible preferred stock amounted to $10,277,275, contributing to financing activities[22] Sales and Market Outlook - The company expanded its sales and installation capacity into Ohio and Illinois during Q1 2024[5] - The company anticipates more favorable equipment pricing and stable or declining interest rates throughout 2024[4] - The company expects profitability to return to historical growth levels in the remaining quarters of 2024[4] Assets and Cash Position - The total assets as of March 31, 2024, were $51.6 million, an increase from $48.0 million as of December 31, 2023[18] - Cash and cash equivalents at the end of the period were $7,731,124, down from $8,022,306 at the beginning of the period[22] - The company experienced a net decrease in cash and cash equivalents of $291,182 during the quarter[22] Related Party Transactions - Related party revenue for the three months ended March 31, 2024, was $8,812,769, with no related party revenue reported in the same period of 2023[20] Warrant Liabilities - The company incurred a change in fair value of warrant liabilities amounting to $(138,000) during the quarter[22]
ESGEN Acquisition (ESAC) - 2024 Q1 - Quarterly Results