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Solarmax Technology Inc. (SMXT-4.17%) has submitted its Form 10-K filing for the fiscal year ended December 31, 2024.
The filing reports a significant decrease in revenues to $23.0 million from $54.1 million in the previous year, primarily due to a decline in solar energy sales resulting from the implementation of NEM 3.0 in California.
Cost of revenues decreased to $20.7 million from $43.0 million, but gross profit fell to $2.3 million, reflecting a reduced gross margin of 10.1% compared to 20.5% the previous year.
Operating expenses increased significantly to $35.4 million from $10.7 million, largely due to a one-time non-cash stock-based compensation expense of $18.5 million and a $7.5 million impairment charge on goodwill related to the China segment.
The company reported a net loss of $35.0 million for the year, compared to a net income of $0.4 million in 2023, largely driven by the stock-based compensation expense and goodwill impairment.
Cash used in operating activities was $9.1 million, a reversal from $4.1 million provided by operations in 2023, reflecting the company's operating losses and changes in working capital.
Solarmax raised $18.6 million in net proceeds from its initial public offering in March 2024, which was used to pay down debt and for working capital.
The company continues to face challenges in its China segment, with no revenue generated since 2021 and ongoing arbitration proceedings concerning a $6.8 million receivable from a state-owned enterprise.
Solarmax is seeking to offset the decline in residential solar sales in California by targeting commercial sales, although no major contracts have been secured as of the filing date.
The filing also highlights the impact of inflation and supply chain issues on the company's operations, with increased costs for raw materials and labor affecting margins.
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. annual 10-K report dated March 31, 2025. To report an error, please email earnings@qz.com.