Solarmax Technology, Inc. (NASDAQ: SMXT) has reported its financial results for the first quarter of 2024, with several key highlights. Revenues for the quarter were $5.8 million, a significant decrease from the $12.9 million reported in the first quarter of 2023. This decline was attributed to a one-time surge in customer demand in 2023, driven by favorable solar rebate regulations in California, as well as unusually heavy and frequent rains in Southern California in 2024.
The cost of revenues included a one-time stock-based compensation expense of $1.3 million, resulting in a gross profit of ($0.5) million, compared to $2.1 million in the first quarter of 2023. The total operating expense, which also included a one-time stock-based compensation expense, was $18.4 million, significantly higher than the $1.5 million reported in the first quarter of 2023. This increase in operating expenses contributed to a net loss of $19.3 million for the quarter, which included the one-time, non-cash impact of a 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, explained that the completion of the company's initial public offering resulted in a non-cash compensation expense of $17.2 million, allocated between cost of revenue and operating expense. Hsu emphasized that while this charge significantly impacted the quarter's results, it was a one-time event associated with the completion of the IPO, which strengthened the company's capital structure. Looking ahead, Hsu expressed optimism about the company's growth prospects.
Solarmax Technology, Inc. is an integrated solar and renewable energy company, primarily engaged in the sale and installation of photovoltaic and battery backup systems for residential and commercial customers in the United States. The company's China operations primarily involve identifying and procuring solar farm projects for resale to third parties and performing engineering, procurement, and construction (EPC) services for solar farm projects.
It is noteworthy that all of Solarmax's revenues for 2022, 2023, and the first quarter of 2024 were generated by its United States operations. Following these announcements, the company's shares moved 2.2%, and are now trading at a price of $12.75. For the full picture, make sure to review SolarMax Technology's 8-K report.
