FTC Solar Announces Fourth Quarter 2024 Financial Results
FTC Solar (FTCI) reported Q4 2024 revenue of $13.2 million, up 30.2% quarter-over-quarter but down 43.1% year-over-year. The company posted a GAAP net loss of $12.2 million ($0.96 per share) and an Adjusted EBITDA loss of $9.8 million.
Key developments include: a 5-gigawatt supply arrangement with Recurrent Energy, a 330+ megawatt project in Australia from GPG Naturgy, and a 280-megawatt project from Rosendin. The company's contracted backlog stands at $502 million.
FTC Solar secured additional financing through an upsized promissory note offering of $10-$15 million expected to close in Q2, following a previous $15 million placement. The company received a $3.2 million earn-out from its Dimension Energy investment. Management expects Q1 2025 revenue to increase approximately 44% from Q4 and aims to achieve adjusted EBITDA breakeven within 2025.
FTC Solar (FTCI) ha riportato un fatturato per il quarto trimestre del 2024 di 13,2 milioni di dollari, in aumento del 30,2% rispetto al trimestre precedente, ma in calo del 43,1% rispetto all'anno precedente. L'azienda ha registrato una perdita netta GAAP di 12,2 milioni di dollari (0,96 dollari per azione) e una perdita di EBITDA rettificato di 9,8 milioni di dollari.
Sviluppi chiave includono: un accordo di fornitura da 5 gigawatt con Recurrent Energy, un progetto di oltre 330 megawatt in Australia da GPG Naturgy, e un progetto da 280 megawatt di Rosendin. Il portafoglio contrattato dell'azienda ammonta a 502 milioni di dollari.
FTC Solar ha ottenuto un ulteriore finanziamento attraverso un'offerta di cambiali aumentata di 10-15 milioni di dollari, prevista per chiudere nel secondo trimestre, dopo un precedente collocamento di 15 milioni di dollari. L'azienda ha ricevuto un earn-out di 3,2 milioni di dollari dal suo investimento in Dimension Energy. La direzione prevede che il fatturato del primo trimestre del 2025 aumenti di circa il 44% rispetto al quarto trimestre e punta a raggiungere il pareggio dell'EBITDA rettificato entro il 2025.
FTC Solar (FTCI) reportó ingresos del cuarto trimestre de 2024 de 13.2 millones de dólares, un aumento del 30.2% respecto al trimestre anterior, pero una disminución del 43.1% en comparación con el año anterior. La empresa reportó una pérdida neta GAAP de 12.2 millones de dólares (0.96 dólares por acción) y una pérdida de EBITDA ajustado de 9.8 millones de dólares.
Los desarrollos clave incluyen: un acuerdo de suministro de 5 gigavatios con Recurrent Energy, un proyecto de más de 330 megavatios en Australia de GPG Naturgy, y un proyecto de 280 megavatios de Rosendin. El backlog contratado de la empresa asciende a 502 millones de dólares.
FTC Solar aseguró financiamiento adicional a través de una oferta de pagarés ampliada de 10 a 15 millones de dólares que se espera cierre en el segundo trimestre, tras una colocación previa de 15 millones de dólares. La empresa recibió un earn-out de 3.2 millones de dólares de su inversión en Dimension Energy. La dirección espera que los ingresos del primer trimestre de 2025 aumenten aproximadamente un 44% respecto al cuarto trimestre y tiene como objetivo alcanzar el equilibrio de EBITDA ajustado dentro de 2025.
FTC Solar (FTCI)는 2024년 4분기 매출이 1,320만 달러로, 전분기 대비 30.2% 증가했지만 전년 대비 43.1% 감소했다고 보고했습니다. 회사는 1,220만 달러의 GAAP 순손실(주당 0.96달러)과 980만 달러의 조정 EBITDA 손실을 기록했습니다.
주요 개발 사항으로는 Recurrent Energy와의 5기가와트 공급 계약, GPG Naturgy의 호주에서의 330메가와트 이상의 프로젝트, Rosendin의 280메가와트 프로젝트가 포함됩니다. 회사의 계약된 백로그는 5억 2백만 달러에 달합니다.
FTC Solar는 1천만에서 1천5백만 달러의 확대된 약속어음 발행을 통해 추가 자금을 확보했으며, 이는 2분기에 마감될 예정입니다. 이전에 1,500만 달러의 자금을 유치했습니다. 회사는 Dimension Energy 투자로부터 320만 달러의 성과 보수를 받았습니다. 경영진은 2025년 1분기 매출이 4분기 대비 약 44% 증가할 것으로 예상하며, 2025년 내에 조정 EBITDA 손익 분기점에 도달하는 것을 목표로 하고 있습니다.
FTC Solar (FTCI) a annoncé un chiffre d'affaires pour le quatrième trimestre 2024 de 13,2 millions de dollars, en hausse de 30,2% par rapport au trimestre précédent, mais en baisse de 43,1% par rapport à l'année précédente. L'entreprise a affiché une perte nette GAAP de 12,2 millions de dollars (0,96 dollar par action) et une perte d'EBITDA ajusté de 9,8 millions de dollars.
Les développements clés comprennent : un accord de fourniture de 5 gigawatts avec Recurrent Energy, un projet de plus de 330 mégawatts en Australie de GPG Naturgy, et un projet de 280 mégawatts de Rosendin. Le carnet de commandes contracté de l'entreprise s'élève à 502 millions de dollars.
FTC Solar a obtenu un financement supplémentaire par le biais d'une offre de billets à ordre augmentée de 10 à 15 millions de dollars, qui devrait se clôturer au deuxième trimestre, après une précédente émission de 15 millions de dollars. L'entreprise a reçu un earn-out de 3,2 millions de dollars de son investissement dans Dimension Energy. La direction s'attend à ce que le chiffre d'affaires du premier trimestre 2025 augmente d'environ 44% par rapport au quatrième trimestre et vise à atteindre l'équilibre de l'EBITDA ajusté d'ici 2025.
FTC Solar (FTCI) hat für das vierte Quartal 2024 einen Umsatz von 13,2 Millionen Dollar gemeldet, was einem Anstieg von 30,2% im Vergleich zum Vorquartal entspricht, jedoch einem Rückgang von 43,1% im Vergleich zum Vorjahr. Das Unternehmen verzeichnete einen GAAP-Nettoverlust von 12,2 Millionen Dollar (0,96 Dollar pro Aktie) und einen Verlust beim bereinigten EBITDA von 9,8 Millionen Dollar.
Wichtige Entwicklungen sind: eine 5-Gigawatt-Liefervereinbarung mit Recurrent Energy, ein Projekt mit über 330 Megawatt in Australien von GPG Naturgy und ein 280-Megawatt-Projekt von Rosendin. Der Auftragsbestand des Unternehmens beläuft sich auf 502 Millionen Dollar.
FTC Solar sicherte sich zusätzliche Finanzierung durch ein erweitertes Schuldscheindarlehen in Höhe von 10 bis 15 Millionen Dollar, das im zweiten Quartal abgeschlossen werden soll, nach einer vorherigen Platzierung von 15 Millionen Dollar. Das Unternehmen erhielt 3,2 Millionen Dollar an Earn-out aus seiner Dimension Energy-Investition. Das Management erwartet, dass der Umsatz im ersten Quartal 2025 im Vergleich zum vierten Quartal um etwa 44% steigen wird und strebt an, bis 2025 die Gewinnschwelle beim bereinigten EBITDA zu erreichen.
- Secured 5GW supply arrangement with Recurrent Energy
- Won 613MW in new projects (333MW GPG Naturgy, 280MW Rosendin)
- Q4 revenue up 30.2% quarter-over-quarter to $13.2M
- Received $3.2M earn-out payment from Dimension Energy investment
- Secured additional $10-$15M financing through promissory note offering
- Contracted backlog of $502M
- Q4 revenue down 43.1% year-over-year
- GAAP net loss of $12.2M in Q4
- Negative gross margin of 29.1%
- Adjusted EBITDA loss of $9.8M
Insights
FTC Solar's Q4 results present a mixed financial picture with some promising forward indicators. Revenue of
The truly significant development is FTC Solar's substantial backlog growth to
Liquidity improvements are notable with an additional
Management's revenue inflection narrative appears credible based on the substantial backlog. Their projection of
FTC Solar's pivot to a 1P product that opens up
FTC Solar's strategic achievements warrant close attention despite current financial headwinds. The 5-gigawatt supply arrangement with Recurrent Energy is particularly consequential, representing a significant portion of the global utility-scale solar tracker market. Securing a major multinational client like Recurrent validates FTC's technology proposition across multiple geographies including the US, Europe, and Australia.
The diversification of the company's customer base is equally important. New wins with GPG Naturgy (Australia) and Rosendin (US West Coast) demonstrate cross-continental market penetration and validation from both multinational energy companies and top-tier EPCs. This customer diversification reduces concentration risk that has plagued other tracker companies.
The company's 1P Pioneer tracker solution appears to be gaining commercial traction. By expanding beyond their traditional 2P focus into 1P technology, FTC can now compete for
The multi-gigawatt agreements with several Tier 1 accounts suggest FTC is successfully navigating the global solar industry's recovery phase. While current financial metrics reflect past industry contraction, the substantial backlog growth indicates FTC is positioning effectively for the industry's reacceleration.
The
Fourth Quarter Highlights and Recent Developments
- Fourth quarter revenue of
$13.2 million , at the high end of our prior target - Entered into 5-gigawatt supply arrangement with Recurrent Energy
- Awarded 330+ megawatt project in Australia from GPG Naturgy
- Awarded 280-megawatt project in U.S. from Rosendin
- Appointed industry veteran Kent James as U.S. Chief Commercial Officer
- Received additional
$3.2 million earn-out on prior investment post quarter end - Announced upsizing of promissory note offering for up to additional
$10 -$15 m il. to close in Q2
AUSTIN, Texas, March 31, 2025 (GLOBE NEWSWIRE) -- FTC Solar, Inc. (Nasdaq: FTCI), a leading provider of solar tracker systems, today announced financial results for the fourth quarter that ended December 31, 2024.
“In addition to reporting favorable quarterly results relative to our targets, I’m pleased to say that we have had a number of recent wins and building momentum,” said Yann Brandt, President and Chief Executive Officer of FTC Solar. “Last quarter I highlighted a new 1-gigawatt supply agreement with Dunlieh Energy, a 500+ megawatt supply agreement with Strata Clean Energy, additional detail on a 1-gigawatt agreement with Sandhills Energy, a
“During the first six months of my tenure, we have been focused on shoring up our near-term backlog. In aggregate we have added multiples of our current annual revenue run rate to our backlog, signing several gigawatts of agreements with Tier 1 accounts along with other awards, added more than
“I believe that FTC Solar is in an incredibly fortunate situation in many respects with products that customers love, a business they enjoy working with, a cost structure that will enable strong margin growth and profitability, and a compelling 1P product set that opens up the
Summary Financial Performance: Q4 2024 compared to Q4 2023
| U.S. GAAP | Non-GAAP(c) | |||||||||||||||
| Three months ended December 31, | ||||||||||||||||
| (in thousands, except per share data) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenue | $ | 13,202 | $ | 23,201 | $ | 13,202 | $ | 23,201 | ||||||||
| Gross margin percentage | (29.1 | %) | 3.0 | % | (25.6 | %) | 4.8 | % | ||||||||
| Total operating expenses | $ | 9,591 | $ | 12,428 | $ | 7,391 | $ | 10,848 | ||||||||
| Loss from operations(a) | $ | (13,428 | ) | $ | (11,736 | ) | $ | (9,840 | ) | $ | (10,050 | ) | ||||
| Net loss | $ | (12,235 | ) | $ | (11,177 | ) | $ | (10,228 | ) | $ | (9,657 | ) | ||||
| Diluted loss per share(b) | $ | (0.96 | ) | $ | (0.89 | ) | $ | (0.80 | ) | $ | (0.77 | ) | ||||
(a) Adjusted EBITDA for Non-GAAP
(b) Prior year amounts per share have been revised to reflect the 1-for-10 reverse stock split, effective November 29, 2024
(c) See below for reconciliation of Non-GAAP financial measures to the nearest comparable GAAP measures
Reflecting net purchase order additions and adjustments since November 12, 2024, the contracted portion of the company's backlog1 now stands at approximately
Fourth Quarter Results
Total fourth-quarter revenue was
GAAP gross loss was
GAAP operating expenses were
GAAP net loss was
Subsequent Events
The company announced today a number of agreements, awards or other items which occurred subsequent to the end of the fourth quarter, including:
- A 5-gigawatt supply arrangement with Recurrent Energy. Recurrent is one of the world’s largest and most geographically diversified utility-scale solar developers. The projects are expected to be located in the U.S., Europe and Australia and utilize a combination of our 1P and 2P tracker technologies. It’s anticipated that the first project revenue under this arrangement will begin in the second half of 2025.
- A 333-megawatt project award from GPG, the power generation subsidiary of multinational energy leader Naturgy, which operates in more than 20 countries with 16 million customers. The project, which is located in Australia, will utilize our 1P Pioneer tracker and is expected to begin tracker production in mid-2025.
- A 280-megawatt project award from Rosendin, a top 5 EPC and the largest employee-owned electrical contractor in the U.S. The project, which is located on the U.S. West Coast, will also utilize our 1P Pioneer solution and is expected to begin tracker production in mid-2025.
- A
$3.2 million earn-out on the company’s prior investment in Dimension Energy. The payment, which was received in the first quarter of 2025, brings the total escrow release and earn-outs received since 2021 to more than$15 million . - And finally, on March 4, 2024, the company entered into a binding term sheet to upsize the previously announced promissory note offering. Under the terms of the upsized agreement the company will issue to the Investor, in a private placement, senior secured promissory notes in an aggregate principal amount of up to an additional
$10 -$15 million dollars and common stock purchase warrants. The transaction is expected to close during the second quarter. This is in addition to the$15 million received in the fourth quarter of 2024.
Outlook
For the first quarter, we expect revenue at the midpoint of our guidance range to be up approximately
| (in millions) | 4Q'24 Guidance | 4Q'24 Actual | 1Q'25 Guidance(3) | |||
| Revenue | ||||||
| Non-GAAP Gross Loss | ||||||
| Non-GAAP Gross Margin | ( | ( | ( | |||
| Non-GAAP operating expenses | ||||||
| Non-GAAP adjusted EBITDA | ||||||
We continue to expect to achieve adjusted EBITDA breakeven on a quarterly basis within 2025.
Fourth Quarter 2024 Earnings Conference Call
FTC Solar’s senior management will host a conference call for members of the investment community at 8:30 a.m. E.T. today, during which the company will discuss its fourth quarter results, its outlook and other business items. This call will be webcast and can be accessed within the Investor Relations section of FTC Solar's website at https://investor.ftcsolar.com. A replay of the conference call will also be available on the website for 30 days following the webcast.
About FTC Solar Inc.
Founded in 2017 by a group of renewable energy industry veterans, FTC Solar is a global provider of solar tracker systems, technology, software, and engineering services. Solar trackers significantly increase energy production at solar power installations by dynamically optimizing solar panel orientation to the sun. FTC Solar’s innovative tracker designs provide compelling performance and reliability, with an industry-leading installation cost-per-watt advantage.
Footnotes
1. The term ‘backlog’ or ‘contracted and awarded’ refers to the combination of our executed contracts (contracted) and awarded orders (awarded), which are orders that have been documented and signed through a contract, where we are in the process of documenting a contract but for which a contract has not yet been signed, or that have been awarded in writing or verbally with a mutual understanding that the order will be contracted in the future. In the case of certain projects, including those that are scheduled for delivery on later dates, we have not locked in binding pricing with customers, and we instead use estimated average selling price to calculate the revenue included in our contracted and awarded orders for such projects. Actual revenue for these projects could differ once contracts with binding pricing are executed, and there is also a risk that a contract may never be executed for an awarded but uncontracted project, or that a contract may be executed for an awarded but uncontracted project at a date that is later than anticipated, or that a contract once executed may be subsequently amended, supplemented, rescinded, cancelled or breached, including in a manner that impacts the timing and amounts of payments due thereunder, thus reducing anticipated revenues. Please refer to our SEC filings, including our Form 10-K, for more information on our contracted and awarded orders, including risk factors.
2. A reconciliation of prior quarter Non-GAAP financial measures to the nearest comparable GAAP measures may be found in Exhibit 99.1 of our Form 8-K filed on November 12, 2024.
3. We do not provide a quantitative reconciliation of our forward-looking non-GAAP guidance measures to the most directly comparable GAAP financial measures because certain information needed to reconcile those measures is not available without unreasonable efforts due to the inherent difficulty in forecasting and quantifying these measures as a result of changes in project schedules by our customers that may occur, which are outside of our control, and the impact, if any, of credit loss provisions, asset impairment charges, restructuring or changes in the timing and level of indirect or overhead spending, as well as other matters, that could occur which could significantly impact the related GAAP financial measures.
Forward-Looking Statements
This press release contains forward looking statements. These statements are not historical facts but rather are based on our current expectations and projections regarding our business, operations and other factors relating thereto. Words such as “may,” “will,” “could,” “would,” “should,” “anticipate,” “predict,” “potential,” “continue,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates” and similar expressions are used to identify these forward-looking statements. These statements are only predictions and as such are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict, including, without limitation, the risks and uncertainties described in more detail above and in our filings with the U.S. Securities and Exchange Commission, including the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of our Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (the “SEC”), our Quarterly Reports on Form 10-Q, and other documents, including Current Reports on Form 8-K, that we have filed, or will file, with the SEC. You should not rely on our forward-looking statements as predictions of future events, as actual results may differ materially from those in the forward-looking statements as a result of certain risks and uncertainties, including, without limitation, the risks and uncertainties described in more detail above and in our filings with the SEC, including the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of our Annual Report on Form 10-K filed with the SEC, our Quarterly Reports on Form 10-Q, and other documents, including Current Reports on Form 8-K, that we have filed, or will file, with the SEC. Any forward-looking statements in this release speak only as of the date on which they are made. FTC Solar undertakes no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events or changes in its expectations, except as required by law.
FTC Solar Investor Contact:
Bill Michalek
Vice President, Investor Relations
FTC Solar
T: (737) 241-8618
E: IR@FTCSolar.com
| FTC Solar, Inc. | |||||||||||||||
| Condensed Consolidated Statements of Comprehensive Loss | |||||||||||||||
| (unaudited) | |||||||||||||||
| Three months ended December 31, | Year ended December 31, | ||||||||||||||
| (in thousands, except shares and per share data) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Revenue: | |||||||||||||||
| Product | $ | 10,428 | $ | 20,945 | $ | 37,520 | $ | 101,872 | |||||||
| Service | 2,774 | 2,256 | 9,835 | 25,130 | |||||||||||
| Total revenue | 13,202 | 23,201 | 47,355 | 127,002 | |||||||||||
| Cost of revenue: | |||||||||||||||
| Product | 13,553 | 19,620 | 48,185 | 93,314 | |||||||||||
| Service | 3,486 | 2,889 | 11,764 | 25,381 | |||||||||||
| Total cost of revenue | 17,039 | 22,509 | 59,949 | 118,695 | |||||||||||
| Gross profit (loss) | (3,837 | ) | 692 | (12,594 | ) | 8,307 | |||||||||
| Operating expenses | |||||||||||||||
| Research and development | 1,474 | 1,450 | 5,915 | 7,166 | |||||||||||
| Selling and marketing | 2,051 | 4,924 | 8,881 | 14,811 | |||||||||||
| General and administrative | 6,066 | 6,054 | 25,440 | 37,107 | |||||||||||
| Total operating expenses | 9,591 | 12,428 | 40,236 | 59,084 | |||||||||||
| Loss from operations | (13,428 | ) | (11,736 | ) | (52,830 | ) | (50,777 | ) | |||||||
| Interest expense, net | (208 | ) | (59 | ) | (319 | ) | (253 | ) | |||||||
| Gain from disposal of investment in unconsolidated subsidiary | 4,722 | 421 | 8,807 | 1,319 | |||||||||||
| Gain on sale of Atlas | 906 | — | 906 | — | |||||||||||
| Loss from change in fair value of warrant liability | (4,322 | ) | — | (4,322 | ) | — | |||||||||
| Other income (expense), net | 346 | 8 | 468 | (257 | ) | ||||||||||
| Loss from unconsolidated subsidiary | (319 | ) | (324 | ) | (1,086 | ) | (660 | ) | |||||||
| Loss before income taxes | (12,303 | ) | (11,690 | ) | (48,376 | ) | (50,628 | ) | |||||||
| (Provision for) benefit from income taxes | 68 | 513 | (230 | ) | 338 | ||||||||||
| Net loss | (12,235 | ) | (11,177 | ) | (48,606 | ) | (50,290 | ) | |||||||
| Other comprehensive income (loss): | |||||||||||||||
| Foreign currency translation adjustments | (311 | ) | 219 | (249 | ) | (232 | ) | ||||||||
| Comprehensive loss | $ | (12,546 | ) | $ | (10,958 | ) | $ | (48,855 | ) | $ | (50,522 | ) | |||
| Net loss per share: | |||||||||||||||
| Basic and diluted (*) | $ | (0.96 | ) | $ | (0.89 | ) | $ | (3.83 | ) | $ | (4.35 | ) | |||
| Weighted-average common shares outstanding: | |||||||||||||||
| Basic and diluted (*) | 12,787,050 | 12,510,743 | 12,675,923 | 11,554,615 | |||||||||||
___________
| (*) | Prior year amounts per share and number of shares, as applicable, have been revised to reflect the 1-for-10 reverse stock split, effective November 29, 2024. |
| FTC Solar, Inc. | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| (unaudited) | ||||||||
| (in thousands, except shares and per share data) | December 31, 2024 | December 31, 2023 | ||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 11,247 | $ | 25,235 | ||||
| Accounts receivable, net of allowance for credit losses of | 39,709 | 65,279 | ||||||
| Inventories | 10,144 | 3,905 | ||||||
| Prepaid and other current assets | 15,028 | 14,089 | ||||||
| Total current assets | 76,128 | 108,508 | ||||||
| Operating lease right-of-use assets | 1,149 | 1,819 | ||||||
| Property and equipment, net | 2,217 | 1,823 | ||||||
| Intangible assets, net | — | 542 | ||||||
| Goodwill | 7,139 | 7,353 | ||||||
| Equity method investment | 954 | 240 | ||||||
| Other assets | 2,341 | 2,785 | ||||||
| Total assets | $ | 89,928 | $ | 123,070 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 12,995 | $ | 7,979 | ||||
| Accrued expenses | 20,134 | 34,848 | ||||||
| Income taxes payable | 325 | 88 | ||||||
| Deferred revenue | 5,306 | 3,612 | ||||||
| Other current liabilities | 10,313 | 8,138 | ||||||
| Total current liabilities | 49,073 | 54,665 | ||||||
| Long-term debt | 9,466 | — | ||||||
| Operating lease liability, net of current portion | 411 | 1,124 | ||||||
| Warrant liability | 9,520 | — | ||||||
| Other non-current liabilities | 2,422 | 4,810 | ||||||
| Total liabilities | 70,892 | 60,599 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ equity | ||||||||
| Preferred stock par value of | — | — | ||||||
| Common stock par value of | 1 | 1 | ||||||
| Treasury stock, at cost; 1,076,257 shares as of December 31, 2024 and December 31, 2023 | — | — | ||||||
| Additional paid-in capital(*) | 367,318 | 361,898 | ||||||
| Accumulated other comprehensive loss | (542 | ) | (293 | ) | ||||
| Accumulated deficit | (347,741 | ) | (299,135 | ) | ||||
| Total stockholders’ equity | 19,036 | 62,471 | ||||||
| Total liabilities and stockholders’ equity | $ | 89,928 | $ | 123,070 | ||||
___________
| (*) | Prior year shares and amounts, as applicable, have been revised to reflect the 1-for-10 reverse stock split, effective November 29, 2024. |
| FTC Solar, Inc. | ||||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||
| (unaudited) | ||||||||
| Year ended December 31, | ||||||||
| (in thousands) | 2024 | 2023 | ||||||
| Cash flows from operating activities | ||||||||
| Net loss | $ | (48,606 | ) | $ | (50,290 | ) | ||
| Adjustments to reconcile net loss to cash used in operating activities: | ||||||||
| Stock-based compensation | 5,412 | 8,295 | ||||||
| Depreciation and amortization | 1,671 | 1,375 | ||||||
| Loss from change in fair value of warrant liability | 4,322 | — | ||||||
| Gain from sale of property and equipment | — | (2 | ) | |||||
| Amortization of debt discount and issue costs | 296 | 709 | ||||||
| Paid-in-kind non-cash interest | 146 | — | ||||||
| Provision for obsolete and slow-moving inventory | 177 | 706 | ||||||
| Loss from unconsolidated subsidiary | 1,086 | 660 | ||||||
| Gain from disposal of investment in unconsolidated subsidiary | (8,807 | ) | (1,319 | ) | ||||
| Gain on sale of Atlas | (906 | ) | — | |||||
| Warranties issued and remediation added | 7,204 | 4,310 | ||||||
| Warranty recoverable from manufacturer | 558 | 90 | ||||||
| Credit loss provisions | 2,072 | 7,373 | ||||||
| Deferred income taxes | 83 | 138 | ||||||
| Lease expense and other | 1,123 | 996 | ||||||
| Impact on cash from changes in operating assets and liabilities: | ||||||||
| Accounts receivable | 23,498 | (23,600 | ) | |||||
| Inventories | (6,416 | ) | 10,338 | |||||
| Prepaid and other current assets | (934 | ) | (3,681 | ) | ||||
| Other assets | (376 | ) | 383 | |||||
| Accounts payable | 4,963 | (7,960 | ) | |||||
| Accruals and other current liabilities | (19,292 | ) | 10,582 | |||||
| Deferred revenue | 1,754 | (7,704 | ) | |||||
| Other non-current liabilities | (2,696 | ) | (3,083 | ) | ||||
| Lease payments and other, net | (1,031 | ) | (972 | ) | ||||
| Net cash used in operations | (34,699 | ) | (52,656 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Purchases of property and equipment | (1,645 | ) | (816 | ) | ||||
| Proceeds from sale of Atlas software platform | 900 | — | ||||||
| Equity method investment in Alpha Steel | (1,800 | ) | (900 | ) | ||||
| Proceeds from disposal of investment in unconsolidated subsidiary | 8,807 | 1,319 | ||||||
| Net cash provided by (used in) investing activities | 6,262 | (397 | ) | |||||
| Cash flows from financing activities: | ||||||||
| Proceeds from borrowings | 14,550 | — | ||||||
| Sale of common stock | — | 34,007 | ||||||
| Stock offering costs paid | — | (283 | ) | |||||
| Financing costs paid | (60 | ) | — | |||||
| Proceeds from stock option exercises | 8 | 226 | ||||||
| Net cash provided by financing activities | 14,498 | 33,950 | ||||||
| Effect of exchange rate changes on cash and cash equivalents | (49 | ) | (47 | ) | ||||
| Decrease in cash and cash equivalents | (13,988 | ) | (19,150 | ) | ||||
| Cash and cash equivalents at beginning of period | 25,235 | 44,385 | ||||||
| Cash and cash equivalents at end of period | $ | 11,247 | $ | 25,235 | ||||
Notes to Reconciliations of Non-GAAP Financial Measures to Nearest Comparable GAAP Measures
We utilize Adjusted EBITDA, Adjusted Net Loss, and Adjusted EPS as supplemental measures of our performance. We define Adjusted EBITDA as net loss plus (i) provision for (benefit from) income taxes, (ii) interest expense, net, (iii) depreciation expense, (iv) amortization of intangibles, (v) stock-based compensation, (vi) loss from changes in fair value of our warrant liability, and (vii) Chief Executive Officer ("CEO") transition costs, non-routine legal fees, costs associated with our reverse stock split, severance and certain other costs (credits). We also deduct the contingent gains arising from earnout payments and project escrow releases relating to the disposal of our investment in an unconsolidated subsidiary and gains from changes in fair value of our warrant liability from net loss in arriving at Adjusted EBITDA. We define Adjusted Net Loss as net loss plus (i) amortization of debt discount and issue costs and intangibles, (ii) stock-based compensation, (iii) loss from changes in fair value of our warrant liability, (iv) CEO transition costs, non-routine legal fees, costs associated with our reverse stock split, severance and certain other costs (credits), and (v) the income tax expense (benefit) of those adjustments, if any. We also deduct the contingent gains arising from earnout payments and project escrow releases relating to the disposal of our investment in an unconsolidated subsidiary and gains from change in fair value of our warrant liability from net loss in arriving at Adjusted Net Loss. Adjusted EPS is defined as Adjusted Net Loss on a per share basis using our weighted average diluted shares outstanding.
Non-GAAP gross profit (loss), Non-GAAP operating expense, Adjusted EBITDA, Adjusted Net Loss and Adjusted EPS are intended as supplemental measures of performance that are neither required by, nor presented in accordance with, U.S. generally accepted accounting principles (“GAAP”). We present these non-GAAP measures, many of which are commonly used by investors and analysts, because we believe they assist those investors and analysts in comparing our performance across reporting periods on an ongoing basis by excluding items that we do not believe are indicative of our core operating performance. In addition, we use Adjusted EBITDA, Adjusted Net Loss and Adjusted EPS to evaluate the effectiveness of our business strategies.
Non-GAAP gross profit (loss), Non-GAAP operating expense, Adjusted EBITDA, Adjusted Net Loss and Adjusted EPS should not be considered in isolation or as substitutes for performance measures calculated in accordance with GAAP, and you should not rely on any single financial measure to evaluate our business. These Non-GAAP financial measures, when presented, are reconciled to the most closely applicable GAAP measure as disclosed below.
The following table reconciles Non-GAAP gross profit (loss) to the most closely related GAAP measure for the three and twelve months ended December 31, 2024 and 2023, respectively:
| Three months ended December 31, | Year ended December 31, | ||||||||||||||
| (in thousands, except percentages) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| U.S. GAAP revenue | $ | 13,202 | $ | 23,201 | $ | 47,355 | $ | 127,002 | |||||||
| U.S. GAAP gross profit (loss) | $ | (3,837 | ) | $ | 692 | $ | (12,594 | ) | $ | 8,307 | |||||
| Depreciation expense | 182 | 139 | 716 | 478 | |||||||||||
| Stock-based compensation | 203 | 283 | 902 | 1,596 | |||||||||||
| Severance costs | 70 | — | 70 | 252 | |||||||||||
| Non-GAAP gross profit (loss) | $ | (3,382 | ) | $ | 1,114 | $ | (10,906 | ) | $ | 10,633 | |||||
| Non-GAAP gross margin percentage | (25.6 | %) | 4.8 | % | (23.0 | %) | 8.4 | % | |||||||
The following table reconciles Non-GAAP operating expenses to the most closely related GAAP measure for the three and twelve months ended December 31, 2024 and 2023, respectively:
| Three months ended December 31, | Year ended December 31, | ||||||||||||||
| (in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| U.S. GAAP operating expenses | $ | 9,591 | $ | 12,428 | $ | 40,236 | $ | 59,084 | |||||||
| Depreciation expense | (126 | ) | (99 | ) | (420 | ) | (355 | ) | |||||||
| Amortization expense | (134 | ) | (133 | ) | (535 | ) | (542 | ) | |||||||
| Stock-based compensation | (966 | ) | 1,032 | (4,510 | ) | (6,699 | ) | ||||||||
| CEO transition | (194 | ) | — | (1,423 | ) | — | |||||||||
| Non-routine legal fees | — | (33 | ) | (66 | ) | (214 | ) | ||||||||
| Reverse stock split | (212 | ) | — | (212 | ) | — | |||||||||
| Severance costs | (568 | ) | (2,347 | ) | (568 | ) | (4,170 | ) | |||||||
| Other (costs) credits | — | — | — | (3,241 | ) | ||||||||||
| Non-GAAP operating expenses | $ | 7,391 | $ | 10,848 | $ | 32,502 | $ | 43,863 | |||||||
The following table reconciles Non-GAAP Adjusted EBITDA to the related GAAP measure of loss from operations for the three and twelve months ended December 31, 2024 and 2023, respectively:
| Three months ended December 31, | Year ended December 31, | ||||||||||||||
| (in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| U.S. GAAP loss from operations | $ | (13,428 | ) | $ | (11,736 | ) | $ | (52,830 | ) | $ | (50,777 | ) | |||
| Depreciation expense | 308 | 238 | 1,136 | 833 | |||||||||||
| Amortization expense | 134 | 133 | 535 | 542 | |||||||||||
| Stock-based compensation | 1,169 | (749 | ) | 5,412 | 8,295 | ||||||||||
| CEO transition | 194 | — | 1,423 | — | |||||||||||
| Non-routine legal fees | — | 33 | 66 | 214 | |||||||||||
| Reverse stock split | 212 | — | 212 | — | |||||||||||
| Severance costs | 638 | 2,347 | 638 | 4,422 | |||||||||||
| Other costs | — | — | — | 3,241 | |||||||||||
| Other income (expense), net | 346 | 8 | 468 | (257 | ) | ||||||||||
| Gain on sale of Atlas | 906 | — | 906 | — | |||||||||||
| Loss from unconsolidated subsidiary | (319 | ) | (324 | ) | (1,086 | ) | (660 | ) | |||||||
| Adjusted EBITDA | $ | (9,840 | ) | $ | (10,050 | ) | $ | (43,120 | ) | $ | (34,147 | ) | |||
The following table reconciles Non-GAAP Adjusted EBITDA and Adjusted Net Loss to the related GAAP measure of net loss for the three months ended December 31, 2024 and 2023, respectively:
| Three months ended December 31, | |||||||||||||||
| 2024 | 2023 | ||||||||||||||
| (in thousands, except shares and per share data) | Adjusted EBITDA | Adjusted Net Loss | Adjusted EBITDA | Adjusted Net Loss | |||||||||||
| Net loss per U.S. GAAP | $ | (12,235 | ) | $ | (12,235 | ) | $ | (11,177 | ) | $ | (11,177 | ) | |||
| Reconciling items - | |||||||||||||||
| Provision for (benefit from) income taxes | (68 | ) | — | (513 | ) | — | |||||||||
| Interest (income) expense, net | 208 | — | 59 | — | |||||||||||
| Amortization of debt discount and issue costs in interest expense | — | 60 | — | 177 | |||||||||||
| Depreciation expense | 308 | — | 238 | — | |||||||||||
| Amortization of intangibles | 134 | 134 | 133 | 133 | |||||||||||
| Stock-based compensation | 1,169 | 1,169 | (749 | ) | (749 | ) | |||||||||
| Gain from disposal of investment in unconsolidated subsidiary(a) | (4,722 | ) | (4,722 | ) | (421 | ) | (421 | ) | |||||||
| Loss from change in fair value of warrant liability(b) | 4,322 | 4,322 | — | — | |||||||||||
| CEO transition(c) | 194 | 194 | — | — | |||||||||||
| Non-routine legal fees(d) | — | — | 33 | 33 | |||||||||||
| Reverse stock split(e) | 212 | 212 | — | — | |||||||||||
| Severance costs(f) | 638 | 638 | 2,347 | 2,347 | |||||||||||
| Adjusted Non-GAAP amounts | $ | (9,840 | ) | $ | (10,228 | ) | $ | (10,050 | ) | $ | (9,657 | ) | |||
| Adjusted Non-GAAP net loss per share (Adjusted EPS): | |||||||||||||||
| Basic and diluted(g) | N/A | $ | (0.80 | ) | N/A | $ | (0.77 | ) | |||||||
| Weighted-average common shares outstanding: | |||||||||||||||
| Basic and diluted(g) | N/A | 12,787,050 | N/A | 12,510,743 | |||||||||||
| (a) | We exclude the gain from collections of contingent contractual amounts arising from the sale in 2021 of our investment in an unconsolidated subsidiary as these amounts are not considered part of our normal ongoing operations. |
| (b) | We exclude non-cash changes in the fair value of our outstanding warrants as we do not consider such changes to impact or reflect changes in our core operating performance. |
| (c) | In connection with hiring a new CEO in August 2024, we agreed to upfront and incremental sign-on bonuses (collectively, the "sign-on bonuses"), a portion of which was paid to our CEO in 2024, with clawback provisions during 2025 and 2026, and a portion of which will be paid in 2025 and 2026, all contingent upon continued employment as of the payment date. These sign-on bonuses will be expensed each period through October 1, 2026, to reflect the required service periods. We do not view these sign-on bonuses as being part of the normal on-going compensation arrangements for our CEO. |
| (d) | Non-routine legal fees represent legal fees and other costs incurred for specific matters that were not ordinary or routine to the operations of the business. |
| (e) | We incurred incremental legal and professional fees to implement a reverse stock split that was consummated effective November 29, 2024. We do not consider these fees to be part of our normal ongoing operations. |
| (f) | Severance costs were incurred during 2024 and 2023, due to restructuring changes involuntarily impacting a number of employees each period, to adjust our operations to reflect current market and activity levels and to take advantage of process efficiencies gained. |
| (g) | Prior year shares and amounts, as applicable, have been revised to reflect the 1-for-10 reverse stock split, effective November 29, 2024. |
The following table reconciles Non-GAAP Adjusted EBITDA and Adjusted Net Loss to the related GAAP measure of net loss for the twelve months ended December 31, 2024 and 2023, respectively:
| Year ended December 31, | |||||||||||||||
| 2024 | 2023 | ||||||||||||||
| (in thousands, except shares and per share data) | Adjusted EBITDA | Adjusted Net Loss | Adjusted EBITDA | Adjusted Net Loss | |||||||||||
| Net loss per U.S. GAAP | $ | (48,606 | ) | $ | (48,606 | ) | $ | (50,290 | ) | $ | (50,290 | ) | |||
| Reconciling items - | |||||||||||||||
| Provision for (benefit from) income taxes | 230 | — | (338 | ) | — | ||||||||||
| Interest expense, net | 319 | — | 253 | — | |||||||||||
| Amortization of debt discount and issue costs in interest expense | — | 296 | — | 709 | |||||||||||
| Depreciation expense | 1,136 | — | 833 | — | |||||||||||
| Amortization of intangibles | 535 | 535 | 542 | 542 | |||||||||||
| Stock-based compensation | 5,412 | 5,412 | 8,295 | 8,295 | |||||||||||
| Gain from disposal of investment in unconsolidated subsidiary(a) | (8,807 | ) | (8,807 | ) | (1,319 | ) | (1,319 | ) | |||||||
| Loss from change in fair value of warrant liability(b) | 4,322 | 4,322 | — | — | |||||||||||
| CEO transition(c) | 1,423 | 1,423 | — | — | |||||||||||
| Non-routine legal fees(d) | 66 | 66 | 214 | 214 | |||||||||||
| Reverse stock split(e) | 212 | 212 | — | — | |||||||||||
| Severance costs(f) | 638 | 638 | 4,422 | 4,422 | |||||||||||
| Other costs(g) | — | — | 3,241 | 3,241 | |||||||||||
| Adjusted Non-GAAP amounts | $ | (43,120 | ) | $ | (44,509 | ) | $ | (34,147 | ) | $ | (34,186 | ) | |||
| Adjusted Non-GAAP net loss per share (Adjusted EPS): | |||||||||||||||
| Basic and diluted(h) | N/A | $ | (3.51 | ) | N/A | $ | (2.96 | ) | |||||||
| Weighted-average common shares outstanding: | |||||||||||||||
| Basic and diluted(h) | N/A | 12,675,923 | N/A | 11,554,615 | |||||||||||
| (a) | We exclude the gain from collections of contingent contractual amounts arising from the sale in 2021 of our investment in an unconsolidated subsidiary as these amounts are not considered part of our normal ongoing operations. |
| (b) | We exclude non-cash changes in the fair value of our outstanding warrants as we do not consider such changes to impact or reflect changes in our core operating performance. |
| (c) | We incurred one-time incremental recruitment fees in connection with hiring a new CEO in August 2024. In addition, we agreed to upfront and incremental sign-on bonuses (collectively, the "sign-on bonuses"), a portion of which was paid to our CEO in 2024, with clawback provisions during 2025 and 2026, and a portion of which will be paid in 2025 and 2026, all contingent upon continued employment as of the payment date. These sign-on bonuses will be expensed each period through October 1, 2026, to reflect the required service periods. We do not view these sign-on bonuses as being part of the normal on-going compensation arrangements for our CEO. |
| (d) | Non-routine legal fees represent legal fees and other costs incurred for specific matters that were not ordinary or routine to the operations of the business. |
| (e) | We incurred incremental legal and professional fees to implement a reverse stock split that was consummated effective November 29, 2024. We do not consider these fees to be part of our normal ongoing operations. |
| (f) | Severance costs were incurred during 2024 and 2023, due to restructuring changes involuntarily impacting a number of employees each period, to adjust our operations to reflect current market and activity levels and to take advantage of process efficiencies gained. |
| (g) | Other costs in 2023 included the write-off of remaining prepaid costs resulting from termination of our consulting agreement with a related party. |
| (h) | Prior year shares and amounts, as applicable, have been revised to reflect the 1-for-10 reverse stock split, effective November 29, 2024. |
FAQ
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