Wed, May 15, 9:31 PM (72 days ago)
SolarMax Technology, Inc. reported a significant net loss of $19.3 million for Q1 2024, primarily due to a one-time stock-based compensation expense of $17.2 million triggered by the vesting of options upon its initial public offering (IPO). Revenue decreased by 55% to $5.8 million from $12.9 million in Q1 2023, mainly driven by a $7.4 million decline in solar energy and battery sales. This decline was attributed to the implementation of California's NEM 3.0 regulations and adverse weather conditions. Gross margin fell to -8.1% from 16.1%, impacted by the aforementioned stock-based compensation. Operating expenses surged to $18.4 million from $1.5 million, largely due to the stock-based compensation expense. Cash flow from operations was negative at $6.4 million, compared to a positive $2.4 million in Q1 2023. The company raised $18.6 million net from its IPO, which is expected to support working capital and debt repayment. Future uncertainties include the impact of NEM 3.0, inflationary pressures, and supply chain issues.