Pineapple Energy Inc

For the period ended Dec 31, 2023. Filed Apr 1, 2024.

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A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.

FY2023 · Filed Apr 1, 2024

SUNE$2.03-1.0%Stored close · as of Nov 9, 2026

Extracted filing text, with the paragraph anchors used by the comparison.

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Contents

Item 8. CONSOLIDATED BALANCE SHEETS

PINEAPPLE ENERGY INC.
CONSOLIDATED BALANCE SHEETS
ASSETS
	December 31	December 31
	2023	2022
CURRENT ASSETS:
Cash and cash equivalents	$3,575,283	$2,187,540
Restricted cash and cash equivalents	1,821,060	3,068,938
Investments	—	2,666,766
Trade accounts receivable, less allowance for
credit losses of $94,085 and $108,636, respectively	5,010,818	5,564,532
Inventories, net	3,578,668	6,054,493
Employee retention credit	—	1,584,541
Related party receivables	46,448	116,710
Prepaid expenses	1,313,082	2,152,058
Costs and estimated earnings in excess of billings	57,241	777,485
Other current assets	376,048	634,362
Current assets held for sale	—	1,154,099
TOTAL CURRENT ASSETS	15,778,648	25,961,524
PROPERTY, PLANT AND EQUIPMENT, net	1,511,878	1,190,932
OTHER ASSETS:
Goodwill	20,545,850	20,545,850
Right of use assets	4,516,102	4,166,838
Intangible assets, net	15,808,333	20,546,810
Other assets	12,000	12,000
Noncurrent assets held for sale	—	2,271,533
TOTAL OTHER ASSETS	40,882,285	47,543,031
TOTAL ASSETS	$58,172,811	$74,695,487
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable	$7,677,261	$7,594,181
Accrued compensation and benefits	1,360,148	859,774
Operating lease liabilities	394,042	220,763
Accrued warranty	268,004	276,791
Other current liabilities	867,727	961,986
Related party payables	—	2,181,761
Income taxes payable	5,373	1,650
Refundable customer deposits	2,112,363	4,285,129
Billings in excess of costs and estimated earnings	440,089	2,705,409
Contingent value rights	1,691,072	—
Earnout consideration	2,500,000	—
Current portion of loans payable	1,654,881	346,290
Current portion of loans payable - related party	3,402,522	5,339,265
Current liabilities held for sale	—	1,161,159
TOTAL CURRENT LIABILITIES	22,373,482	25,934,158
LONG TERM LIABILITIES:
Loans payable and related interest	8,030,562	3,138,194
Loans payable and related interest - related party	2,097,194	4,635,914
Deferred income taxes	41,579	—
Operating lease liabilities	4,193,205	3,961,340
Earnout consideration	1,000,000	2,150,000
Contingent value rights	—	7,402,714
Long term liabilities held for sale	—	250,875
TOTAL LONG-TERM LIABILITIES	15,362,540	21,539,037

COMMITMENTS AND CONTINGENCIES (Note 11)
STOCKHOLDERS' EQUITY
Convertible preferred stock, par value $1.00 per share; 3,000,000 shares authorized; 28,000 shares issued and outstanding	28,000	28,000
Common stock, par value $0.05 per share; 112,500,000 and 75,000,000 shares authorized, respectively;
10,246,605 and 9,915,586 shares issued and outstanding, respectively	512,330	495,779
Additional paid-in capital	46,977,870	45,798,069
Accumulated deficit	(27,081,411)	(19,089,134)
Accumulated other comprehensive loss	—	(10,422)
TOTAL STOCKHOLDERS' EQUITY (DEFICIT)	20,436,789	27,222,292
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$58,172,811	$74,695,487
The accompanying notes are an integral part of the consolidated financial statements.

‎

PINEAPPLE ENERGY INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
	Year Ended December 31
	2023	2022
Sales	$79,632,709	$27,522,099
Cost of sales	51,936,519	20,144,654
Gross profit	27,696,190	7,377,445
Operating expenses:
Selling, general and administrative expenses	29,072,558	12,211,135
Amortization expense	4,738,477	3,133,460
Transaction costs	2,020	2,231,529
Fair value remeasurement of SUNation earnout consideration	1,350,000	—
Impairment loss	—	250,000
Total operating expenses	35,163,055	17,826,124
Operating loss from continuing operations	(7,466,865)	(10,448,679)
Other income (expense):
Investment and other income	191,584	119,634
Gain on sale of assets	437,116	1,229,883
Fair value remeasurement of earnout consideration	—	4,684,000
Fair value remeasurement of contingent value rights	2,674,966	2,125,949
Interest and other expense	(2,657,517)	(976,606)
Other income, net	646,149	7,182,860
Operating loss from continuing operations before income taxes	(6,820,716)	(3,265,819)
Income tax expense	119,176	12,237
Net loss from continuing operations	(6,939,892)	(3,278,056)
Net loss from discontinued operations, net of tax	(1,192,275)	(7,074,184)
Net loss	(8,132,167)	(10,352,240)
Other comprehensive income (loss), net of tax:
Unrealized gains (losses) on available-for-sale securities	10,422	(10,422)
Total other comprehensive income (loss)	10,422	(10,422)
Comprehensive loss	$(8,121,745)	$(10,362,662)
Less: Deemed dividend on extinguishment of Convertible Preferred Stock	—	(13,239,892)
Less: Deemed dividend on modification of PIPE Warrants	—	(3,624,000)
Net loss attributable to common shareholders	$(8,132,167)	$(27,216,132)
Basic net loss per share:
Continuing operations	$(0.69)	$(2.99)
Discontinued operations	(0.12)	(1.05)
	$(0.81)	$(4.04)
Diluted net loss per share:
Continuing operations	$(0.69)	$(2.99)
Discontinued operations	(0.12)	(1.05)
	$(0.81)	$(4.04)
Weighted Average Basic Shares Outstanding	10,035,970	6,741,446
Weighted Average Dilutive Shares Outstanding	10,035,970	6,741,446
The accompanying notes are an integral part of the consolidated financial statements.

‎

PINEAPPLE ENERGY INC.
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
Accumulated
Series A Convertible · Additional · Other
Preferred Stock · Common Stock · Paid-in · Accumulated · Comprehensive
Shares · Amount · Shares · Amount · Capital · Deficit · Income (Loss) · Total
BALANCE AT DECEMBER 31, 2021	—	$—	3,074,998	$	153,750	$(53,750)	$(8,736,894)	$—	$(8,636,894)
Net loss	—	—	—		—	—	(10,352,240)	—	(10,352,240)
Issuance of common stock for
professional services	—	—	12,499		625	(625)	—	—	—
Issuance of common stock for
conversion of related party payables	—	—	293,750		14,687	2,335,313	—	—	2,350,000
Issuance of common stock for
conversion of working capital note payable	—	—	62,500		3,125	496,875			500,000
Effect of reverse capitalization	—	—	2,429,341		121,467	1,473,312	—	—	1,594,779
Issuance of common stock for
HEC Asset Acquisition	—	—	1,562,498		78,125	12,703,109	—	—	12,781,234
Issuance of common stock for
SUNation Acquisition	—	—	1,480,000		74,000	3,996,000	—	—	4,070,000
Issuance of preferred stock and warrants
to PIPE investors, net of issuance costs	32,000	32,000	—		—	29,268,630	—	—	29,300,630
Conversion of Series A convertible
preferred stock to common stock	(4,000)	(4,000)	1,000,000		50,000	(46,000)	—	—	—
Contingent consideration related to
merger transaction	—	—	—		—	(4,684,000)	—	—	(4,684,000)
Share based compensation	—	—	—		—	309,205	—	—	309,205
Other comprehensive loss	—	—	—		—	—	—	(10,422)	(10,422)
BALANCE AT DECEMBER 31, 2022	28,000	$28,000	9,915,586		$495,779	$45,798,069	$(19,089,134)	$(10,422)	27,222,292
Net loss	—	—	—		—	—	(8,132,167)	—	(8,132,167)
Issuance of common stock under
Employee Stock Purchase Plan	—	—	84,995		4,250	121,148	—	—	125,398
Issuance of common stock under
Equity Incentive Plan	—	—	284,331		14,217	(14,217)	—	—	—
Gain on extinguishment of related party debt	—	—	—		—	36,291	—	—	36,291
Share based compensation	—	—	—		—	1,212,956	—	—	1,212,956
Other share retirements	—	—	(38,307)		(1,916)	(176,377)	139,890	—	(38,403)
Other comprehensive income	—	—	—		—	—	—	10,422	10,422
BALANCE AT DECEMBER 31, 2023	28,000	$28,000	10,246,605		$512,330	$46,977,870	$(27,081,411)	$—	$20,436,789
The accompanying notes are an integral part of the consolidated financial statements.

‎

PINEAPPLE ENERGY INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
	Year Ended December 31
	2023	2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$(8,132,167)	$(10,352,240)
Net loss from discontinued operations, net of tax	(1,192,275)	(7,074,184)
Net loss from continuing operations	(6,939,892)	(3,278,056)
Adjustments to reconcile net loss to
net cash (used in) provided by operating activities:
Depreciation and amortization	5,136,420	3,232,621
Share based compensation	1,212,956	309,205
Deferred taxes	41,579	—
Impairment loss	—	250,000
Fair value remeasurement of earnout consideration	1,350,000	(4,684,000)
Fair value remeasurement of contingent value rights	(2,674,966)	(2,125,949)
Gain on sale of assets	(437,116)	(1,229,883)
Interest and accretion expense	2,657,517	976,606
Changes in assets and liabilities:
Trade and related party accounts receivables, net	623,975	(899,804)
Inventories	2,475,825	392,658
Prepaid income taxes	3,723	5,024
Other assets	3,333,146	(61,973)
Accounts payable	83,081	(706,350)
Accrued compensation and benefits	500,373	(637,894)
Customer deposits	(2,172,766)	2,148,599
Other accrued liabilities	(4,494,247)	(245,065)
Accrued interest	(1,085,174)	(1,098,207)
Net cash used in operating activities - continuing operations	(385,566)	(7,652,468)
Net cash (used in) provided by operating activities - discontinued operations	(281,611)	75,269
Net cash used in operating activities	(667,177)	(7,577,199)
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures	(655,691)	(116,909)
Acquisition of business, net of cash acquired	—	(10,991,128)
Proceeds from the sale of fixed assets	450	6,297,865
Proceeds from the sale of investments	2,869,584	228,255
Proceeds from earnout consideration payments	250,000	1,500,000
Net cash provided by (used in) investing activities - continuing operations	2,464,343	(3,081,917)
Net cash provided by (used in) investing activities - discontinued operations	1,102,935	(15,489)
Net cash provided by (used in) investing activities	3,567,278	(3,097,406)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from working capital line of credit	—	150,000
Proceeds from loans payable	7,814,844	—
Payments against loans payable	(7,277,334)	(4,792,885)
Debt issuance costs paid	(348,065)	—
Equity issuance costs paid	—	(2,699,370)
Proceeds from the issuance of preferred stock & warrants to PIPE investors	—	32,000,000
Payments for contingent value rights distributions	(3,036,676)	(8,745,628)
Proceeds from issuance of common stock, net of shares withheld	125,398	—
Purchase of common stock	(38,403)	—
Net cash (used in) provided by financing activities	(2,760,236)	15,912,117
NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	139,865	5,237,512
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF YEAR	5,256,478	18,966
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF YEAR	$5,396,343	$5,256,478

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Income taxes paid	$58,858	$11,297
Interest paid	1,119,480	1,071,906
SUPPLEMENTAL DISCLOSURES OF NON-CASH ACTIVITIES:
Capital contribution on related party debt extinguishment	36,291	—
Issuance of common stock for conversion of related party payables	—	2,350,000
Issuance of common stock for conversion of working capital payable	—	500,000
Issuance of common stock for the acquisition of HEC and E-Gear	—	12,781,234
Issuance of common stock for the acquisition of SUNation	—	4,070,000
Effect of reverse capitalization	—	1,594,779
Contingent consideration related to merger transaction	—	(4,684,000)
Deemed dividend on Convertible Preferred Stock and PIPE Warrants	—	16,863,892
Operating right of use assets obtained in exchange for lease obligations	753,972	4,289,358
The accompanying notes are an integral part of the consolidated financial statements.

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