Financial Performance Overview

Revenue and Profitability

Total revenue for the first quarter of 2024 was $1.5 million, a 21% decrease compared to $1.9 million in the first quarter of 2023. Services revenue increased by 10% to $1.0 million while grant revenue decreased by 46% to $0.6 million.

The company swung to a gross profit of $51 thousand in the first quarter of 2024, compared to a gross loss of $0.4 million in the first quarter of 2023. The change was primarily due to the company not incurring additional contract loss provisions related to its German operations in the most recent quarter.

The net loss increased by 44% from $10.5 million in the first quarter of 2023 to $15.2 million in the first quarter of 2024. Contributing factors included an increase in SG&A expenses, partially offset by decreases in R&D and impairment expenses.

Financial Metric	Q1 2024	Q1 2023	Change
Revenue	$1.5 million	$1.9 million	-21%
Gross Profit	$51 thousand	-$0.4 million	Swung to profit
Net Loss	$15.2 million	$10.5 million	+44%

Expenses

SG&A expenses increased significantly from $4.2 million to $12.4 million, primarily due to a one-time reversal of share-based compensation expense in the prior year period. Excluding share-based compensation, SG&A decreased due to headcount reductions and lower reorganization costs.

R&D expenses decreased 28% from $5.3 million to $3.8 million due to headcount reductions and lower share-based compensation expense.

There were no impairment charges in the first quarter of 2024 compared to $1.0 million in the first quarter of 2023.

Expense	Q1 2024	Q1 2023	Change
SG&A	$12.4 million	$4.2 million	+197%
R&D	$3.8 million	$5.3 million	-28%
Impairment	$0	$1.0 million	-100%

Liquidity and Cash Flows

The company’s liquidity position, comprised of cash, cash equivalents, and investments, decreased slightly from $60.7 million at December 31, 2023 to $59.3 million at March 31, 2024.

Net cash used in operating activities improved from $24.1 million in the first quarter of 2023 to $14.3 million in the first quarter of 2024 due to reductions in headcount and discretionary spending.

Cash provided by investing activities was $9.9 million in the most recent quarter as compared to $17.3 million in the prior year period. Cash used in financing activities was negligible in both periods.

Cash Flow Item	Q1 2024	Q1 2023
Operating Activities	-$14.3 million	-$24.1 million
Investing Activities	$9.9 million	$17.3 million
Financing Activities	-$17 thousand	$0.2 million

Going Concern

The company expects to continue generating losses and having significant cash outflows for at least the next few years. Based on the current liquidity position and forecasts, the company may not have sufficient resources to fund obligations for the next 12 months, raising substantial doubt about its ability to continue as a going concern.

The company is taking actions to reduce costs, generate additional revenue, and secure new capital funding. However, no assurances can be provided that these initiatives will be successful. This situation indicates the company faces significant financial and operational risks in the coming year.

Business Outlook

The company is continuing to develop and commercialize its solar energy technology. Near-term opportunities include providing engineering services to customers and completing the contracted 5 MWe Capella Project.

However, the company faces substantial liquidity constraints over the next 12 months if it is unable to effectively raise additional capital. Cost reduction measures and incremental revenue may not fully offset the company’s high cash burn rate.

If the company successfully raises additional funding and continues progress towards commercializing its technology at scale, the long-term business outlook could improve considerably. But given the current state of operations and financial position, the short-term outlook remains highly uncertain.