EX-99.1 2 solarmax_ex991.htm PRESS RELEASE solarmax_ex991.htm

EXHIBIT 99.1

 

SolarMax Technology, Inc. Reports Fiscal Year 2023 Financial Results

 

RIVERSIDE, CA – April 16, 2024 (GLOBE NEWSWIRE) – 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.

 

 
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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

 

 
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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

 

 

 
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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

 

 

 
4

 

 

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

 

 
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