0001640334-24-000822.txt : 20240516 0001640334-24-000822.hdr.sgml : 20240516 20240516092512 ACCESSION NUMBER: 0001640334-24-000822 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 16 CONFORMED PERIOD OF REPORT: 20240516 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20240516 DATE AS OF CHANGE: 20240516 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SolarMax Technology, Inc. CENTRAL INDEX KEY: 0001519472 STANDARD INDUSTRIAL CLASSIFICATION: CONSTRUCTION SPECIAL TRADE CONTRACTORS [1700] ORGANIZATION NAME: 05 Real Estate & Construction IRS NUMBER: 262028786 STATE OF INCORPORATION: NV FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-41959 FILM NUMBER: 24953801 BUSINESS ADDRESS: STREET 1: 3080 12TH STREET CITY: RIVERSIDE STATE: CA ZIP: 92507 BUSINESS PHONE: (951) 300-0788 MAIL ADDRESS: STREET 1: 3080 12TH STREET CITY: RIVERSIDE STATE: CA ZIP: 92507 8-K 1 solarmax_8k.htm FORM 8-K solarmax_8k.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): (May 16, 2024)

 

SolarMax Technology, Inc.

(Exact name of registrant as specified in its charter)

 

Nevada

 

001-41959

 

26-2028786

(State or other jurisdiction

of incorporation or organization)

 

(Commission

file number)

 

(IRS Employer

Identification No.)

 

3080 12th Street

Riverside, California 92507

(Address of principal executive offices) (Zip Code)

 

Registrant’s telephone number, including area code: (951) 300-0788

 

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading Symbol(s)

 

Name of each exchange on which registered

Common Stock, par value $0.001 per share

 

SMXT

 

The Nasdaq Stock Market LLC

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

 

 

   

Item 2.02. Results of Operations and Financial Condition

 

On May 16, 2024, SolarMax Technology, Inc. (the “Company”) issued a press release announcing its financial results for the quarter ended March 31, 2024. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

 

The information provided in Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1 attached hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section. Such information shall not be deemed incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date hereof, regardless of any general incorporation language in such filing, except as otherwise expressly set forth by specific reference in such filing.

 

Item 9.01 Financial Statements and Exhibits.

 

(d) Exhibits

 

Exhibit No.

 

Description

99.1

 

Press release dated May 16, 2024

104

 

Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 

2

 

    

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

SolarMax Technology, Inc.

 

 

 

 

 

Dated: May 16, 2024

By:

/s/ David Hsu

 

 

 

David Hsu

 

 

 

Chief Executive Officer

 

 

 

3

 

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

EXHIBIT 99.1

 

SolarMax Technology, Inc. Reports First Quarter 2024 Financial Results

 

RIVERSIDE, CA – May 16, 2024 (GLOBE NEWSWIRE) – SolarMax Technology, Inc. (Nasdaq SMXT) (“SolarMax” or the “Company”), an integrated solar energy company, today reported financial results for the quarter ended March 31, 2024.

 

First Quarter Highlights

 

 

·

Revenues were $5.8 million, compared to $12.9 million in the first quarter of 2023.

 

·

Cost of revenues included a one-time stock-based compensation expense of $1.3 million, resulted in gross profit of ($0.5) million, compared to $2.1 million in the first quarter of 2023.

 

·

Total operating expense, which included a one-time stock-based compensation expense of $15.9 million, was $18.4 million, compared to $1.5 million in the first quarter of 2023.

 

·

Net loss was $19.3 million, which included the one-time, non-cash impact of the total $17.2 million stock-based compensation expense related to the vesting of stock options triggered by the Company's initial public offering.

 

David Hsu, CEO of SolarMax, stated, “Our year-over-year comparisons were impacted by two key factors. First, the exceptional revenue we reported for the first quarter of 2023 was primarily due to a one-time surge in customer demand as purchases of residential solar systems were accelerated to benefit from favorable solar rebate regulations in California in anticipation of a change in the California solar rebate regulations which became effective in April 2023.  This was a unique situation that temporarily boosted our revenues last year.  In addition, revenues in the first quarter of 2024 were impacted by unusually heavy and frequent rains in southern California.  Additionally, as a result of the completion of our initial public offering in the first quarter of 2024, a major milestone for SolarMax, termination of forfeiture provisions of stock options resulted in a non-cash compensation expense of $17.2 million, representing the value of the stock options, which was allocated between cost of revenue ($1.3 million) and operating expense ($15.9 million).   Although this charge significantly impacted the results of our operations for the quarter, it was a one-time, non-cash event associated with the completion of our initial public offering, which has strengthened our capital structure.  We remain optimistic about our growth prospects moving forward.”

 

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’ 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’ 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’ revenues for 2022 and 2023 and the first quarter of 2024 was generated by its United States operations. For more information, visit 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.

 

 
1

 

 

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, those described in “Cautionary Note on Forward-Looking Statements” “Item 1A. Risk Factors,” and “Item 7. 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 and “Management's Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s report on Form 10-Q for the quarter ended March 31, 2024, which was filed with the SEC on May 15, 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 our actual future results may be materially different from what we expect.

 

Contact:

For more information, contact:

Stephen Brown, CFO

 

(951) 300-0711

 

 
2

 

 

SolarMax Technology, Inc. and Subsidiaries

Consolidated Balance Sheets

As of March 31, 2024 and December 31, 2023

 

 

 

March 31,

2024

 

 

December 31,

2023

 

 

 

(Unaudited)

 

 

 

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$ 4,929,781

 

 

$ 2,539,312

 

Accounts receivable, net

 

 

3,980,353

 

 

 

4,176,322

 

Short-term investments

 

 

7,000,000

 

 

 

-

 

Contract assets, net

 

 

292,608

 

 

 

549,118

 

Receivable from SPIC and project companies (Note 2)

 

 

3,651,798

 

 

 

3,728,865

 

Customer loans receivable, current, net

 

 

1,395,744

 

 

 

2,212,574

 

Inventories, net

 

 

1,248,447

 

 

 

1,341,397

 

Other receivables and current assets, net

 

 

4,767,673

 

 

 

5,373,997

 

Total current assets

 

 

27,266,404

 

 

 

19,921,585

 

Property and equipment, net

 

 

267,441

 

 

 

291,416

 

Operating lease right-of-use assets

 

 

4,274,921

 

 

 

5,411,820

 

Goodwill

 

 

7,428,019

 

 

 

7,584,779

 

Investments in unconsolidated solar project companies

 

 

9,557,500

 

 

 

9,698,308

 

Customer loans receivable, noncurrent, net

 

 

4,444,262

 

 

 

4,322,942

 

Deferred tax assets

 

 

186,503

 

 

 

189,226

 

Restricted cash, noncurrent

 

 

356,510

 

 

 

354,504

 

Other assets

 

 

910,502

 

 

 

880,621

 

Total assets

 

$ 54,692,062

 

 

$ 48,655,201

 

 

 
3

 

   

SolarMax Technology, Inc. and Subsidiaries

 Condensed Consolidated Balance Sheets

As of March 31, 2024 and December 31, 2023 (Continued)

 

 

 

March 31,

2024

 

 

December 31,

2023

 

 

 

(Unaudited)

 

 

 

 

Liabilities and stockholders’ deficit

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$ 2,042,203

 

 

$ 3,384,195

 

Operating lease liabilities, current

 

 

1,465,296

 

 

 

1,497,555

 

Unsecured loans, current

 

 

2,000,000

 

 

 

2,000,000

 

Secured loans from related parties, current

 

 

9,358,658

 

 

 

11,358,658

 

Secured convertible notes, current

 

 

8,580,000

 

 

 

8,680,000

 

Accrued expenses and other payables

 

 

12,947,272

 

 

 

16,480,896

 

Total current liabilities

 

 

36,393,429

 

 

 

43,401,304

 

Operating lease liabilities, noncurrent

 

 

2,901,516

 

 

 

4,078,569

 

Secured loans from related parties, noncurrent

 

 

7,000,000

 

 

 

7,000,000

 

Secured convertible notes, noncurrent, net of debt discount and issuance costs

 

 

6,363,217

 

 

 

7,269,768

 

Other liabilities

 

 

2,619,138

 

 

 

2,793,388

 

Total liabilities

 

 

55,277,300

 

 

 

64,543,029

 

Commitments and contingencies (Note 17)

 

 

 

 

 

 

 

 

Stockholders’ deficit:

 

 

 

 

 

 

 

 

Preferred stock, par value $0.001 per share; 15,000,000 shares authorized, none issued and outstanding as of March 31, 2024 and December 31, 2023

 

 

-

 

 

 

-

 

Common stock, par value $0.001 per share; 297,225,000 shares authorized, 46,231,142 and 40,983,881 shares issued as of March 31, 2024 and December 31, 2023, respectively, and 44,982,797 and 39,735,536 shares outstanding as of March 31, 2024 and December 31, 2023, respectively

 

 

46,231

 

 

 

40,984

 

Additional paid-in capital

 

 

90,563,721

 

 

 

55,786,634

 

Treasury stock, at cost, 1,248,345 shares at March 31, 2024 and December 31, 2023

 

 

(1,808,889 )

 

 

(1,808,889 )

Accumulated deficit

 

 

(87,895,756 )

 

 

(68,623,969 )

Accumulated other comprehensive loss

 

 

(1,490,545 )

 

 

(1,282,588 )

Total stockholders’ deficit

 

 

(585,238 )

 

 

(15,887,828 )

Total liabilities and stockholders’ deficit

 

$ 54,692,062

 

 

$ 48,655,201

 

 

 
4

 

 

SolarMax Technology, Inc. and Subsidiaries 

Condensed Consolidated Statements of Operations

For the Three Months Ended March 31, 2024 and 2023

 

 

 

Three Months Ended

March 31, 

 

 

 

2024

 

 

2023

 

 

 

(Unaudited)

 

Revenues

 

$ 5,764,074

 

 

$ 12,868,478

 

Cost of revenues (includes stock-based compensation expense of $1,264,690)

 

 

6,228,481

 

 

 

10,796,141

 

Gross profit (loss)

 

 

(464,407 )

 

 

2,072,337

 

Operating expenses:

 

 

 

 

 

 

 

 

General and administrative (includes stock-based compensation expense of $15,945,597)

 

 

18,251,110

 

 

 

1,294,787

 

Selling and marketing

 

 

165,222

 

 

 

250,339

 

Total operating expense

 

 

18,416,332

 

 

 

1,545,126

 

Operating income (loss)

 

 

(18,880,739 )

 

 

527,211

 

Other income (expense):

 

 

 

 

 

 

 

 

Interest income

 

 

15,792

 

 

 

8,676

 

Interest expense

 

 

(384,363 )

 

 

(399,136 )

Equity in income of solar project companies

 

 

60,163

 

 

 

67,902

 

Gain on debt extinguishment

 

 

53,642

 

 

 

13,410

 

Gain on early termination of lease

 

 

77,207

 

 

 

4,212

 

Other income (expense), net

 

 

(208,688 )

 

 

319,252

 

Total other income (expense)

 

 

(386,247 )

 

 

14,316

 

Income (loss) before income taxes

 

 

(19,266,986 )

 

 

541,527

 

Income tax provision (benefit)

 

 

4,801

 

 

 

(201,288 )

Net income (loss)

 

$ (19,271,787 )

 

$ 742,815

 

Net income (loss) per share

 

 

 

 

 

 

 

 

Basic

 

$ (0.46 )

 

$ 0.02

 

Diluted

 

$ (0.46 )

 

$ 0.02

 

Weighted average shares used to compute net income (loss) per share

 

 

 

 

 

 

 

 

Basic

 

 

41,461,502

 

 

 

39,735,536

 

Diluted

 

 

41,461,502

 

 

 

44,533,059

 

 

 
5

 

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