SPRUCE POWER HOLDING CORP

Previous report

The loss or transition of key members of senior management or key employees, or our inability to attract and retain qualified personnel, could adversely affect our business

Previous report

Our success depends in part, on our ability to retain our key personnel. The loss of any of our key personnel could have an adverse effect on our business. There have been, and from time to time, there may continue to be, changes in our management team resulting from the hiring or departure of executive and key employees, or the transition of executives within our business, which could disrupt our business. For example, during 2024 and thus far in 2025, we had turnover in key positions, including our Former CEO and former Chief Financial Officer (“Former CFO”). In April 2024, we completed a CEO transition, and effective May 14, 2025, our Former CFO resigned and the Company initiated a search process of internal and external candidates with the assistance of an executive search firm to identify the Company’s next CFO. Effective June 5, 2025, the Company appointed Thomas James Cimino as the Company’s Interim CFO. We may not be able to identify, hire, and transition to a new CFO or be unable to extend the tenure of Mr. Cimino’s term as Interim CFO beyond his current term.

Previous report

Management transitions may create uncertainty and involve a diversion of resources and management attention, be disruptive to our daily operations or impact public or market perception, any of which could negatively impact our ability to operate effectively or execute our strategies and result in a material adverse impact on our business, financial condition, results of operations or cash flows. Additionally, if we do not successfully manage transitions in our executive team, including our need to transition to a new CFO, it could be viewed negatively by our customers, employees or investors and negatively affect our business, financial condition and operating results, as well as our ability to execute our business strategies. With the recent changes in leadership, there also is a risk to retention of other members of senior management, as well as to continuity of business initiatives, plans, and strategies through the transition period and if we are unable to execute an orderly transition, our business may be adversely affected.

Previous report

Our success also depends, in part, on our continuing ability to identify, hire, attract, train, develop and retain other highly qualified personnel. Experienced and highly skilled employees are in high demand and competition for these employees can be intense, and our ability to hire, attract and retain them depends on our ability to provide competitive compensation. We may not be able to attract, assimilate, develop or retain qualified personnel in the future, and our failure to do so could adversely affect our business, including the execution of our global business strategy. Any failure by management and our employees to perform as expected may have a material adverse effect on our business, prospects, financial condition and operating results.