| Headline: | SolarMax Technology, Inc. Reports Fiscal Year 2023 Financial Results |
| Location: | US |
| Post Date: | Apr 16, 2024 7:40 PM |
| TAG ID: | awire156153 |
| DocID: | 853771 |
| Word Count: | approx. 1808 words |
| Full story: | |
| RIVERSIDE, CA / ACCESSWIRE / April 16, 2024 / SolarMax Technology, Inc. (NASDAQ:SMXT) ("SolarMax" or the "Company"), an integrated solar energy company, today reported financial results for its fiscal year ended December 31, 2023. Fiscal Year 2023 Financial Highlights Revenue increased to $54.1 million, up 21% from 2022 Gross profit increased to $11.1 million, up 49% from 2022 Gross margin improved to 21%, up from 17% in 2022 Total operating expense decreased to $10.7 million, down 31% from 2022 Net income improved to $0.4 million, from a net loss of $6.9 million in 2022 "We are proud to report a year of growth and operational progress for SolarMax," stated David Hsu, CEO of SolarMax. "Our overall revenue increased by 21% in 2023, driven primarily by robust demand for our solar solutions in the expansive US market. Our ability to improve gross margins amidst rising costs highlights the effectiveness of our strategic pricing and operational efficiency. As we look ahead, the recent successful completion of our IPO not only marks a major milestone for SolarMax but also strengthened our foundation for future growth." About SolarMax Technology Inc. SolarMax is an integrated solar and renewable energy company. A solar energy system retains the direct current (DC) electricity from the sun and converts it to alternating current (AC) electricity that can be used to power residential homes and commercial businesses. The solar business is based on the ability of the users of solar energy systems to save on energy costs and reduce their carbon imprint as compared with power purchased from the local electricity utility company. SolarMax was founded in 2008 to engage in the solar business in the United States and commenced operations in China in 2016. SolarMax's United States operations primarily consist of the sale and installation of photovoltaic and battery backup systems for residential and commercial customers and sales of LED systems and services to government and commercial users. SolarMax's China operations consist primarily of identifying and procuring solar farm projects for resale to third parties and performing EPC services primarily for solar farm projects. All of SolarMax's revenues for 2022 and 2023 were generated by its United States operations. Our website is www.solarmaxtech.com . Any information contained on, or that can be accessed through, our website or any other website or any social media is not a part of this press release. Forward Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended ("Securities Act") as well as Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, as amended, that are intended to be covered by the safe harbor created by those sections. Forward-looking statements, which are based on certain assumptions and describe the Company's future plans, strategies and expectations, can generally be identified by the use of forward-looking terms such as "believe," "expect," "may," "will," "should," "would," "could," "seek," "intend," "plan," "goal," "project," "estimate," "anticipate," "strategy," "future," "likely" or other comparable terms, although not all forward-looking statements contain these identifying words. All statements other than statements of historical facts included in this press release regarding the Company's strategies, prospects, financial condition, operations, costs, plans and objectives are forward-looking statements. Important factors that could cause the Company's actual results and financial condition to differ materially from those indicated in the forward-looking statements. Such forward-looking statements are subject to risk and uncertainties, including, but not limited to, Solarmax' ability to operate profitably in the future; (ii) SolarMax' ability to obtain financing when required for its operations; (iii) SolarMax' ability to generate profitable business in China; (iv) SolarMax' ability to collect receivables from its China segment and (v) those risks described in "Cautionary Note on Forward-Looking Statements" "Item 1A Risk Factors," "Item Management's Discussion and Analysis of Financial Condition and Results of Operations," in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the SEC on April 16, 2024. SolarMax undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events except as required by law. You should read this press release with the understanding that SolarMax' actual results may be materially different from what we expect. Contact: For more information, contact: Stephen Brown, CFO (951) 300-0711 SolarMax Technology, Inc. and Subsidiaries Consolidated Balance Sheets As of December 31, 2023 and December 31, 2022 December 31, 2023 December 31, 2022 Assets Current assets: Cash and cash equivalents $ 2,539,312 $ 3,821,952 Accounts receivable, net 4,176,322 5,933,477 Contract assets 549,118 4,701,498 Receivable from SPIC and project companies (Note 2) 3,728,865 3,822,123 Customer loans receivable, current, net 2,212,574 3,437,634 Inventories, net 1,341,397 3,404,902 Other receivables and current assets, net 5,373,997 3,964,259 Total current assets 19,921,585 29,085,845 Property and equipment, net 291,416 444,173 Operating lease right-of-use assets 5,411,820 6,884,362 Goodwill 7,584,779 7,774,472 Investments in unconsolidated solar project companies 9,698,308 9,054,759 Customer loans receivable, noncurrent, net 4,322,942 6,842,805 Deferred tax assets 189,226 107,628 Restricted cash, noncurrent 354,504 346,999 Other assets 880,621 937,185 Total assets $ 48,655,201 61,478,228$ Liabilities and stockholders' deficit Current liabilities: Notes and accounts payable 3,384,195$ $ 2,231,432 Operating lease liabilities, current 1,497,555 1,523,106 Bank and other unsecured loans, current 2,000,000 2,033,451 Secured loans from related parties, current 11,358,658 10,500,000 Secured convertible notes, current 8,680,000 6,300,000 Contract liabilities - 4,036,348 Accrued expenses and other payables 16,480,896 19,888,329 Total current liabilities 42,042,646 46,512,666 Operating lease liabilities, noncurrent 4,078,569 5,469,703 Secured loans from related parties, noncurrent, net of debt discount and issuance costs 7,000,000 8,858,658 Secured convertible notes, noncurrent, net of debt discount and issuance costs 7,269,768 13,295,829 Other liabilities 2,793,388 3,548,921 Total liabilities 64,543,029 77,685,777 Commitments and contingencies (Note 16) Stockholders' deficit: Preferred stock, par value $0.001 per share; 15,000,000 shares authorized, none issued and outstanding as of December 31, 2023 and December 31, 2022 - - Common stock, par value $0.001 per share; 297,225,000 shares authorized, 40,983,881 shares issued, and 39,735,536 shares outstanding as of December 31, 2023 and December 31, 2022 40,984 40,984 Additional paid-in capital 55,786,634 55,786,634 Treasury stock, at cost, 1,248,345 shares at December 31, 2023 and December 31, 2022 (1,808,889 ) (1,808,889 Accumulated deficit (68,623,969 ) (69,058,755 Accumulated other comprehensive loss (1,282,588 ) (1,167,523 Total stockholders' deficit (15,887,828 ) (16,207,549 Total liabilities and stockholders' deficit 48,655,201$ $ 61,478,228 SolarMax Technology, Inc. and Subsidiaries Consolidated Statements of Operations For the Years Ended December 31, 2023 and 2022 Years Ended December 31, 2023 2022 Revenues $ 54,139,330 $ 44,718,030 Cost of revenues 42,990,393 37,236,493 Gross profit 11,148,937 7,481,537 Operating expenses: General and administrative 9,507,293 14,370,085 Selling and marketing 1,157,793 1,081,264 Total operating expense 10,665,086 15,451,349 Operating income (loss) 483,851 (7,969,812 ) Other income (expense): Interest income 68,853 61,617 Interest expense (1,576,749 ) (1,826,934 ) Equity in income of solar project companies 864,132 493,648 Gain on debt extinguishment 26,821 1,946,635 Gain on early termination of lease 4,212 1,079,117 Other income (loss), net 499,472 (616,117 ) Total other income (expense) (113,259 ) 1,137,966 Income (loss) before income taxes 370,592 (6,831,846 ) Income tax provision (benefit) (64,194 ) 41,432 Net income (loss) $ 434,786 $ (6,873,278 ) Net income (loss) per share Basic $ 0.01 $ (0.17 ) Diluted $ 0.01 $ (0.17 ) Weighted average shares of common stock: Basic 39,735,536 39,735,536 Diluted 40,025,153 39,735,536 SolarMax Technology, Inc. and Subsidiaries Consolidated Statements of Cash Flows For the Years Ended December 31, 2023 and 2022 Years Ended December 31, 2023 2022 Operating activities Net income (loss) $ 434,786 $ (6,873,278 ) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization expense 180,670 277,932 Amortization of loan discounts on customer loan receivables (53,909 ) (147,050 ) Amortization of debt discount and debt issuance costs 180,760 171,775 Amortization of operating lease right-of-use assets 1,432,343 1,094,234 Provision for (recovery of) credit losses and loan losses 56,751 61,744 Provision for excess and obsolete inventories 110,863 70,364 Provision for warranty, customer care and production guaranty 639,279 536,494 Equity in income of investment in excess of distribution received (864,132 ) (493,648 ) Deferred income tax provision (84,194 ) (92,740 ) Gain on disposal of property and equipment (21,449 ) (80,290 ) Gain on debt extinguishment (26,821 ) (1,946,635 ) Gain on early termination of lease (4,212 ) (1,079,117 ) Write off of capitalized merger costs - 3,377,526 Other 295,348 - Changes in operating assets and liabilities: Accounts receivable 1,536,755 (3,095,068 ) Contract assets 4,152,380 (2,140,577 ) Unbilled receivables - 4,814,095 Receivables from SPIC and project companies 372,247 8,078 Customer loans receivable 3,849,570 5,531,086 Inventories 1,952,642 (119,384 ) Other receivables and current assets (1,404,001 ) (1,098,423 ) Other assets 27,283 25,644 Notes and accounts payable 1,152,763 (2,580,829 ) Operating lease liabilities (1,372,274 ) (1,091,303 ) Contract Liabilities (4,036,348 ) 2,649,370 Accrued expenses and other payables (2,940,629 ) (236,644 ) Other liabilities (1,379,324 ) 485,073 Net cash provided by (used in) operating activities $ 3,814,900 $ (1,971,571 ) Investing activities Issuance of note receivable to SPAC and Sponsor $ - $ (288,856 ) Purchase of property and equipment (27,999 ) (83,466 ) Proceeds from disposal of property and equipment 21,449 91,798 Net cash used in investing activities (6,550 ) (280,524 ) Financing activities Principal repayment on convertible notes (4,800,000 ) (7,050,000 ) Principal repayment on borrowings (33,451 ) (68,240 ) Repayment on equipment capital lease (15,488 ) (25,396 ) Payments related to Uonone acquisition contingency (Note 14) (6,841,501 ) (356,329 ) Proceeds from Uonone acquisition contingency (Note 14) 6,644,817 - Net cash used in financing activities (5,045,623 ) (7,499,965 ) Effect of exchange rate (37,862 ) 518,737 Net decrease in cash, cash equivalents, and restricted cash (1,275,135 ) (9,233,323 ) Cash, cash equivalents, and restricted cash, beginning of year 4,168,951 13,402,274 Cash, cash equivalents, and restricted cash, end of year $ 2,893,816 $ 4,168,951 Supplemental disclosures of cash flow information: Interest paid in cash $ 1,086,314 $ 1,628,570 Income taxes paid in cash $ 177,377 $ 4,520 Non-cash activities for investing and financing activities: Right-of-use assets acquired through operating leases $ - $ 6,274,652 Right-of-use assets acquired through operating leases, related party $ 912,983 $ 5,165,503 Promissory note issued in lieu of a payable for rent and security deposit $ - $ 1,358,658 Convertible notes issued to related parties in lieu of EB-5 loan payment $ 1,000,000 $ 2,141,342 Cash balance at the beginning of the year: Cash and cash equivalents $ 3,821,952 $ 9,886,195 Restricted cash, current - 3,195,731 Restricted cash, noncurrent 346,999 320,348 $ 4,168,951 $ 13,402,274 Cash balance at the end of the year: Cash and cash equivalents $ 2,539,312 $ 3,821,952 Restricted cash, current - - Restricted cash, noncurrent 354,504 346,999 $ 2,893,816 $ 4,168,951 SOURCE: SolarMax Technology View the original press release on accesswire.com |
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