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SolarMax Technology, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing reports a significant decrease in revenue to $6.3 million for the three months ended September 30, 2024, compared to $14.3 million for the same period in 2023. This decrease is attributed to a decline in solar energy sales following the implementation of NEM 3.0 regulations.
Cost of revenue for the quarter was $5.1 million, representing 80.1% of sales, compared to 71.6% in the same quarter of the previous year. This increase in cost ratio is due to fixed labor costs amidst declining sales.
SolarMax reported a gross profit of $1.3 million for the quarter, compared to $4.0 million in the previous year, with the decline attributed to reduced sales and increased costs.
An impairment charge of $7.5 million was recognized for the entire balance of goodwill related to the China segment, reflecting continued economic downturns in China.
General and administrative expenses increased to $3.5 million from $2.2 million, primarily due to stock compensation expenses and costs associated with being a public company.
Net loss for the quarter was $9.6 million, compared to a net income of $1.5 million in the previous year. The loss includes a $17.2 million stock-based compensation expense related to options becoming non-forfeitable.
Cash used in operating activities was $7.8 million, while cash used in investing and financing activities was $7.7 million and $13.9 million, respectively.
SolarMax had a working capital deficit of $13.6 million as of September 30, 2024. The company is focused on expanding its commercial solar sales to offset the decline in residential sales.
The filing also details various financial agreements, including the issuance of convertible notes to former limited partners of Clean Energy Funding, LP.
SolarMax received notices of noncompliance from Nasdaq (NDAQ-1.24%) regarding its market value and minimum bid price requirements. The company has 180 days to regain compliance.
The company continues to face challenges from inflationary pressures and supply chain issues, impacting its cost structure and pricing strategies.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Solarmax Technology Inc. quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.