SolarMax Technology Reports Third Quarter 2024 Financial Results
November 15 2024 - 5:00AM
SolarMax Technology, Inc. (Nasdaq SMXT) (“SolarMax” or the
“Company”), an integrated solar energy company, today reported
financial results for the quarter ended September 30, 2024.
Third Quarter Highlights
- Revenue: $6.3 million, compared with
$14.3 million in Q3 2023.
- Gross profit: $1.3 million, compared
with $4.0 million in Q3 2023.
- Total operating expense: $11.3
million, including a $7.5 million goodwill impairment relating to
the China segment, compared with $3.1 million in Q3 2023.
- Net loss: $9.6 million, or $0.21 per
share, compared with net income of $1.5 million, or $0.04 per
share, in Q3 2023.
David Hsu, CEO of SolarMax, stated, “Our third quarter
performance reflects some of the same external factors that
influenced our first half, as well as a $7.5 million goodwill
impairment associated with our China segment, which has not
generated any revenue since 2022. The revenues in the three and
nine months ended September 30, 2023 reflected an unusual surge in
demand as residential customers accelerated their solar system
purchases to take advantage of favorable rebate conditions before
regulatory changes in California, which made purchases of
residential solar systems less attractive to homeowners, took
effect in April 2023. This created a temporary boost in our 2023
numbers. Since we completed these orders in 2023, our 2024 revenues
reflected a significant drop from the 2023 revenues. Additionally,
our revenues were impacted by the increased borrowing costs
associated with higher interest rates, which resulted in a decline
in consumer investment in solar across the industry. Additionally,
in the three months ended September 30, 2024, we recognized the
expense associated with the termination of forfeiture provisions of
restricted stock of approximately $1.3 million and the impairment
of goodwill on our balance sheet in China of approximately $7.5
million which resulted in higher operating expenses by $8.8
million. In the nine months ended September 30, 2025, we incurred
stock-based compensation expenses of $18.6 million resulting from
stock options becoming non-forfeitable as a result of the
completion of our initial public offering. Although these charges
significantly impacted the results of our operations for the
quarter, they were a one-time, non-cash event.”
“Despite the short-term challenges, we are focused on looking to
execute our long-term growth strategy, and we continue to see
underlying demand for our solar solutions,” continued Hsu. “Efforts
to significantly expand our commercial solar project portfolio are
well underway, and we anticipate these projects will play an
increasing role in our revenue growth in the quarters ahead.
However, we cannot predict the effect, if any, that federal
policies relating to renewable energy will affect the market for
solar systems.”
About SolarMax Technology Inc.
SolarMax, based in California and founded in 2008, is a leader
within the solar and renewable energy sector focused on making
sustainable energy both accessible and affordable. SolarMax has
established a strong presence in southern California. SolarMax is
looking to generate growth with strategic initiatives that aim to
scale commercial solar development services and LED lighting
solutions in the US while expanding its residential solar
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.
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, including but not limited to the Company’s ability
to develop its commercial solar business and to be accepted as a
provider of commercial solar systems in the United States, and its
ability to translate its experience in China, where it has not
completed an installation since 2021, to the current United States
market, any changes in governmental policies relating to renewable
energy and 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 September 30, 2024, which was filed
with the SEC on November 14, 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
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