Core Insights - The company has made substantial progress in reducing debt, lowering costs, and enhancing cash flow, reflecting initial successes from corporate transformation activities [2][4][5] - The commercial project backlog has increased by over 30% year-over-year, indicating strong demand and growth potential in the market [3][5] Financial Performance - For Q1 2025, consolidated revenue decreased by 4% to $12.6 million from $13.2 million, with commercial revenue rising by 28% while residential revenue declined by 3% due to seasonality [5][17] - Gross profit was $4.4 million, representing a gross margin of 35.1%, down from 36.4% in Q1 2024 [9][17] - Selling, general and administrative (SG&A) expenses decreased by 9% to $6.0 million, and interest expense declined by 25% to $0.6 million [9][17] Debt and Cash Flow - The company reduced total debt by over 50% to $9.2 million from $19.1 million as of December 31, 2024, and improved cash and cash equivalents to $1.4 million from $0.8 million [9][17] - The restructuring initiatives eliminated $12.6 million of secured debt, significantly reducing annual cash drain and interest expenses [9][17] Market Outlook - The company anticipates improved results in Q2 2025 as consumers seek to lock in pricing before potential tariff increases and changes to federal solar tax incentives [3][4] - The residential business in Hawaii is expected to rebound due to new solar and battery incentives effective May 2025 [4][5] Strategic Initiatives - The company is exploring opportunities to expand its Service and Maintenance business in the New York metro region, targeting homeowners with orphaned solar systems [4] - Management is pursuing various organic and acquisition-based initiatives to expand market reach and scale operations [4][5]