Thu, May 8, 12:20 PM (4 days ago)
**Acorn Energy, Inc. (ACORN) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** Q1 2025 revenue was $3,098,000, a 45.3% increase from $2,132,000 in Q1 2024. - **Profit Margins:** Gross profit margin remained strong at 75.1% in Q1 2025, compared to 74.6% in Q1 2024. - **Net Income:** Net income attributable to Acorn Energy, Inc. stockholders was $464,000 in Q1 2025, a significant increase from $65,000 in Q1 2024. - **Cash Flow:** Net cash increased by $265,000 in Q1 2025, with $271,000 provided by operating activities and $6,000 used in investing activities. **Segment Performance:** - **Power Generation (PG):** Revenue increased by 60.9% to $2,887,000, driven by sales under a material contract and custom-designed units. - **Cathodic Protection (CP):** Revenue decreased by 37.6% to $211,000. **Trends and Uncertainties:** - **Revenue Growth:** The increase in revenue is attributed to a material contract with a major cell phone provider and growth in the customer base. - **Operating Expenses:** R&D and SG&A expenses increased moderately, with R&D expenses rising due to salary increases and new hires, and SG&A expenses increasing due to personnel expenses and technology costs. - **Liquidity:** As of May 6, 2025, Acorn had $2,724,000 in cash, with sufficient liquidity to finance operations for at least the next twelve months. **Future Operations Impact:** - **Contractual Obligations:** Acorn has $1,929,000 in contractual cash obligations due in 2026 and beyond, including software agreements, operating leases, and purchase commitments. - **Internal Controls:** Management identified material weaknesses in internal controls over financial reporting, which are being addressed through remediation actions. **Conclusion:** Acorn Energy, Inc. demonstrated strong financial performance in Q1 2025, with significant revenue growth and improved net income. The company faces challenges in internal controls and contractual obligations but has taken steps to address these issues. The outlook for future operations is positive, with continued growth in the PG segment and potential for additional financing if needed.