Tigo Energy(TYGO) - 2024 Q1 - Quarterly Report

PART I. FINANCIAL INFORMATION This part presents the unaudited condensed consolidated financial statements and management's discussion and analysis Item 1. Financial Statements (Unaudited) This section details the unaudited condensed consolidated financial statements, including balance sheets, statements of operations, equity, and cash flows Condensed Consolidated Balance Sheets This section presents the company's financial position at specific dates, detailing assets, liabilities, and equity Key Balance Sheet Metrics | Metric | March 31, 2024 (in thousands) | December 31, 2023 (in thousands) | Change (vs Dec 31, 2023) | | :-------------------------------- | :------------------------------ | :------------------------------- | :----------------------- | | Cash and cash equivalents | $9,025 | $4,405 | +$4,620 | | Marketable securities, short-term | $12,920 | $26,806 | -$13,886 | | Inventory, net | $55,757 | $61,401 | -$5,644 | | Total current assets | $88,396 | $104,710 | -$16,314 | | Total assets | $109,121 | $127,777 | -$18,656 | | Total current liabilities | $14,159 | $26,419 | -$12,260 | | Total liabilities | $54,797 | $64,953 | -$10,156 | | Total stockholders' equity | $54,324 | $62,824 | -$8,500 | Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income This section details the company's financial performance, including revenue, expenses, and net income or loss Statements of Operations Summary | Metric | Three Months Ended March 31, 2024 (in thousands) | Three Months Ended March 31, 2023 (in thousands) | Change (YoY) | | :--------------------------------------- | :----------------------------------------------- | :----------------------------------------------- | :----------- | | Net revenue | $9,802 | $50,058 | -$40,256 | | Gross profit | $2,766 | $18,369 | -$15,603 | | (Loss) income from operations | $(9,088) | $7,820 | -$16,908 | | Net (loss) income | $(11,506) | $6,910 | -$18,416 | | Basic (Loss) earnings per common share | $(0.19) | $0.09 | -$0.28 | | Diluted (Loss) earnings per common share | $(0.19) | $0.05 | -$0.24 | Condensed Consolidated Statements of Convertible Preferred Stock and Stockholders' Equity (Deficit) This section tracks changes in the company's equity, including convertible preferred stock and stockholders' equity - Total stockholders' equity decreased from $62,824 thousand at December 31, 2023, to $54,324 thousand at March 31, 2024[19] - Stock-based compensation expense for the three months ended March 31, 2024, was $2,505 thousand[19] - Net loss for the three months ended March 31, 2024, was $(11,506) thousand, contributing to the accumulated deficit[19] Condensed Consolidated Statements of Cash Flows This section reports cash generated and used by the company across operating, investing, and financing activities Cash Flow Summary | Metric | Three Months Ended March 31, 2024 (in thousands) | Three Months Ended March 31, 2023 (in thousands) | Change (YoY) | | :------------------------------------ | :----------------------------------------------- | :----------------------------------------------- | :----------- | | Net cash used in operating activities | $(11,266) | $(5,087) | -$(6,179) | | Net cash provided (used) by investing activities | $15,636 | $(10,655) | +$26,291 | | Net cash provided by financing activities | $250 | $28,631 | -$28,381 | | Net increase in cash and cash equivalents | $4,620 | $12,889 | -$8,269 | | Cash and cash equivalents at end of period | $9,025 | $50,606 | -$41,581 | Notes to Condensed Consolidated Financial Statements This section provides detailed explanations and disclosures supporting the condensed consolidated financial statements 1. Nature of Operations This note describes the company's business, primary activities, and the accounting treatment of the business combination - Tigo Energy, Inc. provides solar and energy storage solutions, including module level power electronics (MLPE) designed to maximize energy output and enhance safety for utility, commercial, and residential solar arrays[28] - The Business Combination with Roth CH Acquisition IV Co. was accounted for as a reverse recapitalization, treating Legacy Tigo as the accounting acquirer for financial reporting purposes[31] 2. Summary of Significant Accounting Policies This note outlines the key accounting principles and methods used in preparing the financial statements - The Company is an emerging growth company and has elected to use the extended transition period for complying with new or revised accounting standards[37] - The Company is evaluating ASU No. 2023-07 (Improvements to Reportable Segment Disclosures) and ASU No. 2023-09 (Improvements to Income Tax Disclosures), both expected to be adopted for the year ending December 31, 2024[39][40] 3. Merger with Roth CH Acquisition IV Co. This note details the accounting for the business combination with Roth CH Acquisition IV Co. as a reverse recapitalization - The Business Combination was accounted for as a reverse recapitalization, with Legacy Tigo treated as the accounting acquirer[44] - Legacy Tigo acquired $2.2 million in cash and $0.6 million in prepaid expenses, while assuming $3,400 in accrued expenses and $61,000 in income tax payable[45] - Transaction costs of $6.1 million were incurred, with $3.9 million charged to general and administrative expenses[45] 4. Acquisition of Foresight Energy, Ltd. This note describes the acquisition of fSight, its strategic rationale, total consideration, and contingent share revaluation - On January 25, 2023, Legacy Tigo acquired 100% of fSight to expand its capabilities in smart management of electrical energy and actionable system performance data[48] - Total consideration for fSight amounted to $13.2 million, consisting of common stock and contingent shares, plus an additional $0.5 million related to a loan[49][51] - The 12-month tranche of Contingent Shares (166,271 shares) was issued on January 25, 2024, and the remaining contingent shares liability was revalued to $0.1 million as of March 31, 2024[54][55] 5. Net (Loss) Earnings Per Share This note presents the calculation of basic and diluted net loss or earnings per common share Earnings Per Share Summary | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--------------------------------------- | :-------------------------------- | :-------------------------------- | | Net (loss) income attributable to common stockholders – basic | $(11,506) thousand | $582 thousand | | Net (loss) earnings per share of common stock – basic | $(0.19) | $0.09 | | Net (loss) income attributable to common stockholders – diluted | $(11,506) thousand | $582 thousand | | Net (loss) earnings per share of common stock – diluted | $(0.19) | $0.05 | - Weighted-average shares of common stock outstanding (basic