Zeo Energy Corp. Reports Third Quarter 2024 Financial Results
Zeo Energy Corp. (ZEO) reported Q3 2024 financial results, showing mixed performance. Revenue reached $19.7 million in Q3, marking a quarter-over-quarter increase of $4.9 million, despite being down 48.1% year-over-year. The company reported a Q3 net loss of $2.9 million compared to net income of $4.0 million in Q3 2023.
For the first nine months of 2024, total revenue was $54.6 million, down 37% from $86.7 million in 2023, with a net loss of $8.7 million compared to net income of $6.4 million in the prior year. The company completed the acquisition of Lumio Holdings' assets, expanding its presence into California. The decrease in performance was primarily attributed to challenging market conditions due to higher interest rates affecting residential solar direct sales.
Zeo Energy Corp. (ZEO) ha riportato i risultati finanziari del terzo trimestre del 2024, mostrando una performance misto. I ricavi hanno raggiunto $19,7 milioni nel terzo trimestre, segnando un aumento rispetto al trimestre precedente di $4,9 milioni, nonostante un calo del 48,1% rispetto all'anno precedente. L'azienda ha riportato una perdita netta di $2,9 milioni nel terzo trimestre, rispetto a un utile netto di $4,0 milioni nel terzo trimestre del 2023.
Per i primi nove mesi del 2024, i ricavi totali sono stati $54,6 milioni, in calo del 37% rispetto ai $86,7 milioni del 2023, con una perdita netta di $8,7 milioni rispetto a un utile netto di $6,4 milioni nell'anno precedente. L'azienda ha completato l'acquisizione degli asset di Lumio Holdings, espandendo la sua presenza in California. Il calo delle performance è stato principalmente attribuito a condizioni di mercato difficili dovute ai tassi di interesse più elevati che influenzano le vendite dirette di energia solare residenziale.
Zeo Energy Corp. (ZEO) informó los resultados financieros del tercer trimestre de 2024, mostrando un rendimiento mixto. Los ingresos alcanzaron $19.7 millones en el tercer trimestre, marcando un aumento de $4.9 millones en comparación con el trimestre anterior, a pesar de estar un 48.1% por debajo respecto al año anterior. La empresa reportó una pérdida neta de $2.9 millones en el tercer trimestre, en comparación con un ingreso neto de $4.0 millones en el tercer trimestre de 2023.
Para los primeros nueve meses de 2024, los ingresos totales fueron $54.6 millones, un descenso del 37% desde los $86.7 millones en 2023, con una pérdida neta de $8.7 millones frente a un ingreso neto de $6.4 millones en el año anterior. La empresa completó la adquisición de los activos de Lumio Holdings, expandiendo su presencia en California. La disminución en el rendimiento se atribuyó principalmente a las difíciles condiciones del mercado debido a las tasas de interés más altas que afectaron las ventas directas de energía solar residencial.
Zeo Energy Corp. (ZEO)는 2024년 3분기 재정 결과를 보고하며 혼합된 실적을 보여주었습니다. 3분기 수익은 $19.7 백만에 달하며, 이전 분기 대비 $4.9 백만 증가했으나, 전년 대비 48.1% 감소했습니다. 회사는 2023년 3분기의 순이익이 $4.0 백만에 비해 3분기 순손실이 $2.9 백만이라고 보고했습니다.
2024년 첫 아홉 달 동안, 총 수익은 $54.6 백만으로, 2023년의 $86.7 백만 대비 37% 감소했으며, 순손실은 $8.7 백만으로 지난해의 순이익 $6.4 백만에 비해 적자를 기록했습니다. 이 회사는 Lumio Holdings의 자산을 인수하여 캘리포니아로의 존재감을 확장했습니다. 성과의 감소는 주택용 태양광 직접 판매에 영향을 미치는 높은 이자율로 인한 어렵고 복잡한 시장 상황 때문입니다.
Zeo Energy Corp. (ZEO) a annoncé ses résultats financiers pour le troisième trimestre 2024, révélant des performances mitigées. Le chiffre d'affaires a atteint 19,7 millions de dollars au troisième trimestre, marquant une augmentation de 4,9 millions de dollars par rapport au trimestre précédent, bien que cela représente une baisse de 48,1 % par rapport à l'année précédente. L'entreprise a déclaré une perte nette de 2,9 millions de dollars au troisième trimestre, par rapport à un bénéfice net de 4,0 millions de dollars au troisième trimestre 2023.
Pour les neuf premiers mois de 2024, le chiffre d'affaires total a été de 54,6 millions de dollars, soit une baisse de 37 % par rapport aux 86,7 millions de dollars de 2023, avec une perte nette de 8,7 millions de dollars contre un bénéfice net de 6,4 millions de dollars l'année précédente. L'entreprise a finalisé l'acquisition des actifs de Lumio Holdings, élargissant ainsi sa présence en Californie. La baisse des performances a été principalement attribuée aux conditions de marché difficiles dues à des taux d'intérêt plus élevés affectant les ventes directes de systèmes solaires résidentiels.
Zeo Energy Corp. (ZEO) hat die finanziellen Ergebnisse des 3. Quartals 2024 veröffentlicht und zeigt eine gemischte Leistung. Der Umsatz erreichte 19,7 Millionen Dollar im 3. Quartal, was einem Anstieg von 4,9 Millionen Dollar im Vergleich zum Vorquartal entspricht, obwohl er im Vergleich zum Vorjahr um 48,1 % zurückgegangen ist. Das Unternehmen berichtete für das 3. Quartal von einem Nettoverlust von 2,9 Millionen Dollar im Vergleich zu einem Nettogewinn von 4,0 Millionen Dollar im 3. Quartal 2023.
Für die ersten neun Monate 2024 betrugen die Gesamterlöse 54,6 Millionen Dollar, ein Rückgang um 37 % von 86,7 Millionen Dollar im Jahr 2023, mit einem Nettoverlust von 8,7 Millionen Dollar im Vergleich zu einem Nettogewinn von 6,4 Millionen Dollar im Vorjahr. Das Unternehmen schloss die Übernahme von Vermögenswerten der Lumio Holdings ab und erweiterte seine Präsenz in Kalifornien. Der Rückgang der Leistung wurde hauptsächlich auf herausfordernde Marktbedingungen aufgrund höherer Zinssätze zurückgeführt, die sich negativ auf den direkten Verkauf von Wohnsolar auswirkten.
- Quarter-over-quarter revenue increase of $4.9 million in Q3 2024
- Improved gross profit margin to 50.2% in Q3 2024 from 46.0% in Q3 2023
- Strategic expansion into California market through Lumio acquisition
- Operational efficiencies achieved in labor and materials cost
- Q3 2024 revenue declined 48.1% year-over-year to $19.7 million
- Net loss of $2.9 million in Q3 2024 vs net income of $4.0 million in Q3 2023
- Negative Adjusted EBITDA of $1.0 million in Q3 2024
- Nine-month revenue decreased 37% year-over-year
- $8.7 million net loss for first nine months of 2024
Insights
Zeo Energy's Q3 2024 results paint a complex picture of a company navigating significant headwinds in the residential solar sector. The quarter-over-quarter revenue growth of
The most striking aspect is the company's margin management amid declining revenues. Despite a
However, the shift from a
The Lumio acquisition represents a strategic pivot that could be transformative. Expanding into California, the largest U.S. solar market, could provide significant growth opportunities and help offset regional market pressures. Moreover, the company's stated intention to pursue further market consolidation could position it advantageously as industry challenges force smaller competitors to exit.
Looking ahead, three key factors will likely determine Zeo's trajectory: 1) Interest rate movements and their impact on solar financing 2) Success in integrating Lumio's assets and penetrating the California market 3) Ability to maintain operational efficiency while pursuing growth through acquisitions.
NEW PORT RICHEY, Fla., Jan. 23, 2025 (GLOBE NEWSWIRE) -- Zeo Energy Corp. (Nasdaq: ZEO) (“Zeo”, “Zeo Energy”, or the “Company”), a leading Florida-based provider of residential solar and energy efficiency solutions, today reported financial results for the third quarter and nine months ended September 30, 2024.
Recent Financial and Operational Highlights
- Q3 2024 revenue of
$19.7 million , a quarter-over-quarter increase of approximately$4.9 million - Adjusted EBITDA performance driven by flexible operating model and disciplined cost management
- Completed acquisition of substantially all of the assets of Lumio Holdings, Inc. (“Lumio”)
Management Commentary
“In the third quarter we continued to maintain our focus on profitability through our flexible operating model and disciplined expense management,” said Zeo Energy Corp. CEO Tim Bridgewater. “While the broader solar industry remains challenged by several near-term headwinds, we were still able to drive revenue growth quarter over quarter and believe that current performance has largely stabilized in the near to medium-term.
“In recognition of the current environment, we’ve continued to survey the market for quality assets to bolster our geographic and strategic positioning over the long term. Our recent acquisition of Lumio’s assets exemplifies this strategy, and we believe it enables us to expand our scale and market presence, which will now include California. Going forward, we expect there will be continued consolidation in the market, and we will be proactive in identifying similar opportunities as they arise.
“As we move into the new year, our sales and recruitment efforts are proceeding according to plan, and we should be well positioned for the next sales season. Put together, we believe these actions should have us growing at above-industry rates in 2025 and beyond.”
First Nine Months 2024 Financial Results
Results compare the nine months ended September 30, 2024 to the nine months ended September 30, 2023.
- Total revenue was
$54.6 million , a37.0% decrease from$86.7 million in the comparable 2023 period. The decrease was primarily due to higher interest rates creating a challenging environment for residential solar direct sales in 2024. - Gross profit decreased to
$23.8 million (43.6% of total revenue) from$37.5 million (43.2% of total revenue) in the comparable 2023 period. The decrease in gross profit was driven in part by the decrease in sales compared to the prior period. The improvement in gross profit as a percentage of revenue was the result of improved operational efficiencies in labor and a reduction in materials cost. - Net loss for the first nine months was
$8.7 million (15.9% of total revenue) compared to net income of$6.4 million (7.3% of total revenue) in the comparable 2023 period. The decrease was primarily due to stock compensation of$7.1 million in the current period compared to none in the comparable 2023 period as well as costs incurred as a result of becoming a public company and software development costs. - Adjusted EBITDA, a non-GAAP measurement of operating performance reconciled below, decreased to
$(1.2) million (2.2% of total revenue) from approximately$7.9 million (9.1% of total revenue) in the comparable 2023 period. The decrease was primarily due to higher interest rates creating a challenging environment for residential solar direct sales in 2024 and a decrease in sales.
Third Quarter 2024 Financial Results
Results compare the 2024 third quarter ended September 30, 2024 to the 2023 third quarter ended September 30, 2023.
- Total revenue was
$19.7 million , a48.1% decrease from$37.9 million in the comparable 2023 period. The decrease was primarily due to higher interest rates creating a challenging environment for residential solar direct sales in 2024. - Gross profit decreased to
$9.9 million (50.2% of total revenue) from$20.5 million (46.0% of total revenue) in the comparable 2023 period. The decrease in gross profit was driven in part by the decrease in sales compared to the prior period. The improvement in gross profit as a percentage of revenue was the result of improved operational efficiencies in labor and a reduction in materials cost. - Net loss for the quarter was
$2.9 million (14.7% of total revenue) compared to net income of$4.0 million (10.6% of total revenue) in the comparable 2023 period. This decrease was primarily due to the decrease in gross profit and$1.5 million in stock compensation expense in 2024 compared to none in 2023. - Adjusted EBITDA, a non-GAAP measurement of operating performance reconciled below, decreased to
$(1.0) million (5.0% of total revenue) from approximately$4.5 million (11.9% of total revenue) in the comparable 2023 period. The decrease was primarily due to a$1.6 million charge in 2024 related to a change in the estimate for the allowance for credit losses.
For more information, please visit the Zeo Energy Corp. investor relations website at investors.zeoenergy.com.
About Zeo Energy Corp.
Zeo Energy Corp. is a Florida-based regional provider of residential solar, distributed energy, and energy efficiency solutions. Zeo focuses on high-growth markets with limited competitive saturation. With its differentiated sales approach and vertically integrated offerings, Zeo, through its Sunergy business, serves customers who desire to reduce high energy bills and contribute to a more sustainable future. For more information on Zeo Energy Corp., please visit www.zeoenergy.com.
Non-GAAP Financial Measures
Adjusted EBITDA
Zeo Energy defines Adjusted EBITDA, a non-GAAP financial measure, as net income (loss) before interest and other expenses, net, income tax expense, and depreciation and amortization, as adjusted to exclude stock-based compensation. Zeo utilizes Adjusted EBITDA as an internal performance measure in the management of the Company’s operations because the Company believes the exclusion of these non-cash and non-recurring charges allows for a more relevant comparison of Zeo’s results of operations to other companies in the industry. Adjusted EBITDA should not be viewed as a substitute for net loss calculated in accordance with GAAP, and other companies may define Adjusted EBITDA differently.
The following table provides a reconciliation of net income (loss) to Adjusted EBITDA for the periods presented:
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net income (loss) | $ | (2,872,424 | ) | $ | 4,000,047 | $ | (8,736,845 | ) | $ | 6,441,842 | ||||||
| Adjustment: | ||||||||||||||||
| Other income, net | (137,508 | ) | (9,151 | ) | (188,329 | ) | (6,982 | ) | ||||||||
| Change in fair value of warrant liabilities | (138,000 | ) | - | (828,000 | ) | 0 | ||||||||||
| Interest expense | 209,227 | 10,396 | 294,257 | 62,920 | ||||||||||||
| Income tax benefit | (44,146 | ) | - | (235,352 | ) | - | ||||||||||
| Stock compensation | 1,503,130 | - | 7,101,818 | - | ||||||||||||
| Depreciation and amortization | 499,876 | 521,289 | 1,413,074 | 1,431,482 | ||||||||||||
| Adjusted EBITDA | (979,845 | ) | 4,522,581 | (1,179,377 | ) | 7,929,262 | ||||||||||
Adjusted EBITDA Margin
Zeo Energy defines Adjusted EBITDA margin, a non-GAAP financial measure, expressed as a percentage, as the ratio of Adjusted EBITDA to revenue, net. Adjusted EBITDA margin measures net income (loss) before interest and other expenses, net, income tax expense, depreciation and amortization, as adjusted to exclude stock-based compensation and is expressed as a percentage of revenue. In the table above, Adjusted EBITDA is reconciled to the most comparable GAAP measure, net income (loss). Zeo utilizes Adjusted EBITDA margin as an internal performance measure in the management of the Company’s operations because the Company believes the exclusion of these non-cash and non-recurring charges allows for a more relevant comparison of the Company’s results of operations to other companies in Zeo’s industry.
The following table sets forth Zeo’s calculations of Adjusted EBITDA margin for the periods presented:
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||||||
| Total Revenue | 19,657,905 | 37,894,166 | 54,596,333 | 86,705,020 | ||||||||||||||||
| Adjusted EBITDA | (979,845 | ) | 4,522,581 | (1,179,377 | ) | 7,929,262 | ||||||||||||||
| Adjusted EBITDA margin | (5.0 | ) | % | 11.9 | % | (2.2 | ) | % | 9.1 | % | ||||||||||
Forward-Looking Statements
This news release contains certain forward-looking statements within the meaning of section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Exchange Act of 1934, as amended, that are based on beliefs and assumptions and on information currently available to the Company. Such statements may include, but are not limited to, statements that refer to projections, forecasts, or other characterizations of future events or circumstances, including any underlying assumptions. The words “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will,” and similar references to future periods may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements may include, for example, statements about the future financial performance of the Company; the ability to effectively consolidate the assets of Lumio and produce the expected results; changes in the Company’s strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects, the ability to raise additional funds, and plans and objectives of management. These forward-looking statements are based on information available as of the date of this news release, and current expectations, forecasts, and assumptions, and involve a number of judgments, risks, and uncertainties. Accordingly, forward-looking statements should not be relied upon as representing the Company’s views as of any subsequent date, and the Company does not undertake any obligation to update such forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities laws. You should not place undue reliance on these forward-looking statements. As a result of a number of known and unknown risks and uncertainties, the Company’s actual results or performance may be materially different from those expressed or implied by these forward-looking statements. Some factors that could cause actual results to differ include: (i) the outcome of any legal proceedings that may be instituted against the Company or others; (ii) the Company’s success in retaining or recruiting, or changes required in, its officers, key employees, or directors; (iii) the Company’s ability to maintain the listing of its common stock and warrants on Nasdaq; (iv) limited liquidity and trading of the Company’s securities; (v) geopolitical risk and changes in applicable laws or regulations; (vi) the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors; (vii) operational risk; (viii) litigation and regulatory enforcement risks, including the diversion of management time and attention and the additional costs and demands on the Company’s resources; (ix) the Company’s ability to effectively consolidate the assets of Lumio and produce the expected results; and (x) other risks and uncertainties, including those included under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (the “SEC”) for the year ended December 31, 2023 and in its subsequent periodic reports and other filings with the SEC.
In light of the significant uncertainties in these forward-looking statements, you should not regard these statements as a representation or warranty by the Company, its respective directors, officers or employees or any other person that the Company will achieve its objectives and plans in any specified time frame, or at all. The forward-looking statements in this news release represent the views of the Company as of the date of this news release. Subsequent events and developments may cause that view to change. However, while the Company may elect to update these forward-looking statements at some point in the future, there is no current intention to do so, except to the extent required by applicable law. You should, therefore, not rely on these forward-looking statements as representing the views of the Company as of any date subsequent to the date of this news release.
Zeo Energy Corp. Contacts
For Investors:
Tom Colton and Greg Bradbury
Gateway Group
ZEO@gateway-grp.com
For Media:
Zach Kadletz
Gateway Group
ZEO@gateway-grp.com
| ZEO ENERGY CORP. CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited) | ||||||||
| As of September 30, | As of December 31, | |||||||
| 2024 | 2023 | |||||||
| Assets | (unaudited) | (as restated – see note 3) | ||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 4,330,062 | $ | 8,022,306 | ||||
| Accounts receivable, including | 8,523,301 | 2,905,205 | ||||||
| Inventories | 482,251 | 350,353 | ||||||
| Prepaid installation costs | 1,072,090 | 4,915,064 | ||||||
| Prepaid expenses and other current assets | 1,178,432 | 40,403 | ||||||
| Total current assets | 15,586,136 | 16,233,331 | ||||||
| Other assets | 491,164 | 62,140 | ||||||
| Property, equipment and other fixed assets, net | 2,126,782 | 2,289,723 | ||||||
| Right -of-use operating lease asset | 1,402,462 | 1,135,668 | ||||||
| Right-of-use finance lease asset | 481,130 | 583,484 | ||||||
| Intangibles, net | - | 771,028 | ||||||
| Goodwill | 27,010,745 | 27,010,745 | ||||||
| Total assets | $ | 47,098,419 | $ | 48,086,119 | ||||
| Liabilities, mezzanine equity and stockholders’ equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 4,856,529 | $ | 4,699,855 | ||||
| Accrued expenses and other current liabilities, including | 3,556,893 | 4,646,365 | ||||||
| Current portion of long-term debt | 291,036 | 294,398 | ||||||
| Current portion of obligations under operating leases | 576,890 | 539,599 | ||||||
| Current portion of obligations under finance leases | 127,341 | 118,416 | ||||||
| Contract liabilities, including | 601,681 | 5,223,518 | ||||||
| Total current liabilities | 10,010,370 | 15,522,151 | ||||||
| Obligations under operating leases, non-current | 909,468 | 636,414 | ||||||
| Obligations under finance leases, non-current | 382,618 | 479,271 | ||||||
| Other liabilities | 1,000,000 | - | ||||||
| Warrant liabilities | 690,000 | - | ||||||
| Long-term debt | 567,563 | 825,764 | ||||||
| Total liabilities | 13,560,019 | 17,463,600 | ||||||
| Commitments and contingencies (Note 16) | ||||||||
| Redeemable noncontrolling interests | ||||||||
| Convertible preferred units | 15,862,110 | - | ||||||
| Class B Units | 57,003,700 | - | ||||||
| Stockholders’ (deficit) equity | ||||||||
| Class V common stock | 3,523 | 3,373 | ||||||
| Class A common stock | 518 | - | ||||||
| Additional paid-in capital | 3,875,899 | 31,152,491 | ||||||
| Accumulated deficit | (43,207,350 | ) | (533,345 | ) | ||||
| Total stockholders’ (deficit) equity | (39,327,410 | ) | 30,622,519 | |||||
| Total liabilities, redeemable noncontrolling interests and stockholders’ (deficit) equity | $ | 47,098,419 | $ | 48,086,119 | ||||
| ZEO ENERGY CORP. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | ||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| (as restated - see note 3) | (as restated - see note 3) | |||||||||||||||
| Revenue, net of financing fees of | $ | 17,329,201 | $ | 37,894,166 | $ | 36,457,234 | $ | 86,705,020 | ||||||||
| Related party revenue, net of financing fees of | 2,328,704 | - | 18,139,099 | - | ||||||||||||
| Total revenue | 19,657,905 | 37,894,166 | 54,596,333 | 86,705,020 | ||||||||||||
| Operating costs and expenses: | ||||||||||||||||
| Cost of goods sold (exclusive of depreciation and amortization shown below) | 9,787,350 | 20,473,087 | 30,805,155 | 49,245,721 | ||||||||||||
| Depreciation and amortization | 499,876 | 521,289 | 1,413,074 | 1,431,482 | ||||||||||||
| Sales and marketing | 5,202,525 | 8,595,645 | 16,178,375 | 19,813,979 | ||||||||||||
| General and administrative | 7,151,005 | 4,302,853 | 15,893,998 | 9,716,058 | ||||||||||||
| Total operating expenses | 22,640,756 | 33,892,874 | 64,290,602 | 80,207,240 | ||||||||||||
| (Loss) income from operations | (2,982,851 | ) | 4,001,292 | (9,694,269 | ) | 6,497,780 | ||||||||||
| Other income (expenses), net: | ||||||||||||||||
| Other income, net | 137,508 | 9,151 | 188,329 | 6,982 | ||||||||||||
| Change in fair value of warrant liabilities | 138,000 | - | 828,000 | - | ||||||||||||
| Interest expense | (209,227 | ) | (10,396 | ) | (294,257 | ) | (62,920 | ) | ||||||||
| Total other income (expense), net | 66,281 | (1,245 | ) | 722,072 | (55,938 | ) | ||||||||||
| Net (loss) income before taxes | (2,916,570 | ) | 4,000,047 | (8,972,197 | ) | 6,441,842 | ||||||||||
| Income tax benefit | 44,146 | - | 235,352 | - | ||||||||||||
| Net (loss) income | (2,872,424 | ) | 4,000,047 | (8,736,845 | ) | 6,441,842 | ||||||||||
| Less: Net loss attributable to Sunergy Renewables, LLC prior to the Business Combination | - | 4,000,047 | (523,681 | ) | 6,441,842 | |||||||||||
| Net loss subsequent to the Business Combination | (2,872,424 | ) | - | (8,213,164 | ) | - | ||||||||||
| Less: Net loss attributable to redeemable non-controlling interests | (2,448,162 | ) | - | (5,979,621 | ) | - | ||||||||||
| Net loss attributable to Class A common stock | $ | (424,262 | ) | $ | - | $ | (2,233,543 | ) | $ | - | ||||||
| Basic and diluted net loss per common share | $ | (0.08 | ) | $ | - | $ | (0.60 | ) | $ | - | ||||||
| Weighted average units outstanding, basic and diluted | 5,053,942 | - | 3,696,721 | - | ||||||||||||
| ZEO ENERGY CORP. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | ||||||||
| Nine Months Ended September 30, | ||||||||
| 2024 | 2023 | |||||||
| (as restated – see note 3) | ||||||||
| Cash Flows from Operating Activities | ||||||||
| Net (loss) income | $ | (8,736,845 | ) | $ | 6,441,842 | |||
| Adjustment to reconcile net (loss) income to cash (used in) provided by operating activities | ||||||||
| Depreciation and amortization | 1,310,720 | 1,366,720 | ||||||
| Gain on disposal of fixed assets | (91,684 | ) | - | |||||
| Change in fair value of warrant liabilities | (828,000 | ) | - | |||||
| Provision for credit losses | 2,282,588 | 967,148 | ||||||
| Noncash operating lease expense | 523,821 | 399,610 | ||||||
| Noncash finance lease expense | 102,354 | 64,762 | ||||||
| Stock based compensation expense | 7,101,818 | - | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (7,864,274 | ) | (7,186,538 | ) | ||||
| Accounts receivable due from related parties | (36,410 | ) | - | |||||
| Inventories | (131,898 | ) | 34,530 | |||||
| Prepaid installation costs | 3,842,974 | - | ||||||
| Prepaids and other current assets | (689,656 | ) | (322,568 | ) | ||||
| Other assets | (254,806 | ) | (566,075 | ) | ||||
| Due from related party | - | (94,056 | ) | |||||
| Accounts payable | (437,190 | ) | 3,223,485 | |||||
| Accrued expenses and other current liabilities | (1,195,659 | ) | 885,228 | |||||
| Accrued expenses and other current liabilities due to related parties | (1,985,281 | ) | - | |||||
| Contract liabilities | (3,460,989 | ) | 842,150 | |||||
| Contract liabilities due to related parties | (1,160,848 | ) | - | |||||
| Operating lease payments | (480,270 | ) | (389,890 | ) | ||||
| Net cash (used in) provided by operating activities | (12,189,535 | ) | 5,666,348 | |||||
| Cash flows from Investing Activities | ||||||||
| Purchases of property, equipment and other assets | (285,067 | ) | (161,768 | ) | ||||
| Net cash used in investing activities | (285,067 | ) | (161,768 | ) | ||||
| Cash flows from Financing Activities | ||||||||
| Proceeds from the issuance of debt | - | 192,210 | ||||||
| Repayments of finance lease liabilities | (87,728 | ) | (56,822 | ) | ||||
| Proceeds from the issuance of convertible preferred stock, net of transaction costs | 9,221,649 | - | ||||||
| Repayments of debt | (261,563 | ) | (272,736 | ) | ||||
| Distributions to members | (90,000 | ) | (3,289,518 | ) | ||||
| Net cash provided by (used in) financing activities | 8,782,358 | (3,426,866 | ) | |||||
| Net (decrease) increase in cash and cash equivalents | (3,692,244 | ) | 2,077,714 | |||||
| Cash and cash equivalents, beginning of period | 8,022,306 | 2,268,306 | ||||||
| Cash and cash equivalents, end of the period | $ | 4,330,062 | $ | 4,346,020 | ||||
| Supplemental Cash Flow Information | ||||||||
| Cash paid for interest | $ | 135,980 | $ | 39,838 | ||||
| Non-cash transactions | ||||||||
| Right-of-use assets obtained in exchange for operating lease liabilities | $ | 790,615 | $ | 653,663 | ||||
| Right-of-use assets obtained in exchange for finance lease liabilities | $ | - | $ | 682,365 | ||||
| Deferred equity issuance costs | $ | 2,769,039 | $ | - | ||||
| Issuance of Class A common stock to vendors | $ | 891,035 | $ | - | ||||
| Issuance of Class A common stock to backstop investors | $ | 1,569,463 | $ | - | ||||
| Issuance of Class A common stock for services | $ | 255,485 | $ | - | ||||
| Preferred dividends | $ | 9,007,034 | $ | - | ||||
FAQ
What caused ZEO's revenue decline in Q3 2024?
How much did ZEO's gross profit margin improve in Q3 2024?
What is the strategic significance of ZEO's Lumio acquisition?
How much was ZEO's net loss in the first nine months of 2024?
