PIONEER POWER SOLUTIONS INC
For the period ended Mar 31, 2025. Filed May 15, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 15, 2025
PPSI$2.27+2.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-11-14.
0001493152-24-045402
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-15.
0001641172-25-011072
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 83 previous paragraphs and 66 current paragraphs.
17 unchanged; 29 reworded; 19 added; 37 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 10 previous and 13 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (19)
Current report
We intend to grow our business through continued internal investments in product development and expansion of our manufacturing, engineering, sales and marketing personnel.
Current report
Description of Business Segment
Current report
In October 2024, we sold our Pioneer Custom Electrical Products Corp. (“PCEP”) business unit to a buyer (the “PCEP Sale”) as a result of a strategic change to the operations of our business. Following the PCEP Sale, we currently have one reportable segment - Critical Power Solutions (“Critical Power”).
Current report
Our Critical Power business designs, manufactures and sells mobile EV charging solutions under our e-Boost suite of products, in addition to distributing new power generation equipment and performing service and maintenance on our customers’ existing equipment. Many of these systems are used to maintain reliable, primary, peak shaving or emergency standby power at facilities where it is required or where the potential consequences of a power outage make it necessary, such as, but not limited to, major national retailers, hospitals, data centers, communications facilities, factories, military sites, office complexes and other critical operations.
Current report
Overview of March 31, 2025, and 2024, Operating Results
Current report
Our revenue backlog as of March 31, 2025, from our Critical Power business was $23,231, an increase of $8,209, or 54.6%, when compared to $15,022 as of March 31, 2024.
Current report
For the three months ended March 31, 2025, our revenue from our Critical Power segment increased by $3,425, or 103.3% to $6,740, up from $3,315 during the three months ended March 31, 2024, primarily due to an increase in sales and rentals of our suite of mobile EV charging solutions, e-Boost.
Current report
For the three months ended March 31, 2025, our gross margin from our Critical Power segment decreased to 2.2% of revenues, as compared to 16.1% during the three months ended March 31, 2024. The decrease was primarily attributable to a contract with a customer in our Pioneer eMobility business, which generated lower margins on the initial units due to higher costs incurred during the early stages of production as we refined our manufacturing processes and optimized build efficiency.
Current report
R&D Expenses. Research and development expenses in our Critical Power segment consists of costs incurred in performing research and development activities, including salaries, benefits, overhead costs, contract services and other related costs. During the three months ended March 31, 2025, we incurred $80 of R&D expenses related to developing our mobile e-Boost EV charging solutions as compared to $211 during the three months ended March 31, 2024.
Current report
Operating Loss from Continuing Operations
Current report
Non-Operating Income from Continuing Operations
Current report
For the three-month period ended March 31, 2025, other non-operating income was $23, as compared to $40 during the three-month period ended March 31, 2024.
Current report
The current quarter’s 0% effective tax rate primarily reflects:
Current report
Due to continued volatility in operating results and the non-reliability of full-year forecasted income, management determined that it was not practicable to compute a reliable annual effective tax rate. As such, the Company applied the discrete method under ASC 740-270-30-18 to determine the tax provision for the quarter.
Current report
The Company expects to continue applying the discrete method until a reliable forecast of annual taxable income can be established.
Current report
Net Loss per Share from Continuing Operations
Current report
Income from Discontinued Operations
Current report
Income from discontinued operations, net of tax was $1,147, during the three months ended March 31, 2025, as compared to $620 during the three months ended March 31, 2024. The $1,147 of income recognized during the three months ended March 31, 2025, was due to finalizing the net working capital adjustment with the buyer of the PCEP Sale.
Current report
The cash flows related to the discontinued operations have not been segregated and are included in the unaudited condensed consolidated statements of cash flows.
Removed paragraphs (37)
Previous report
Recent Developments
Previous report
Sale of Subsidiary
Previous report
On October 29, 2024, the Company entered into an Equity Contribution and Purchase Agreement (the “Equity Purchase Agreement”), by and among the Company, Pioneer Custom Electrical Products, LLC, a wholly owned subsidiary of the Company (“Pioneer Custom”), Voltaris Power LLC (the “Buyer”) and Pioneer Investment LLC (“Investment”). Pursuant to the terms of the Equity Purchase Agreement, the Company agreed to:
Previous report
The Equity Transaction included total consideration of (i) $48,000 in cash, subject to adjustment pursuant to the terms of the Equity Purchase Agreement, and (ii) $2,000 in equity pursuant to Investment’s issuance of the Rollover Units to the Company.
Previous report
Following the execution of the Equity Purchase Agreement, the Equity Transaction was consummated on October 29, 2024 (the “Closing Date”).
Previous report
In addition, upon the closing of the Equity Transaction, the Company and the Buyer entered into a transition services agreement, pursuant to which (i) the Company will provide certain transition services to the Buyer for various service periods ranging from 30 days to 12 months following the Closing Date and (ii) the Buyer will provide one specific transition service to the Company until October 31, 2025.
Previous report
Description of Business Segments
Previous report
As of September 30, 2024, we had two reportable segments: Electrical Infrastructure Equipment (“Electrical Infrastructure”) and Critical Power Solutions (“Critical Power”).
Previous report
Overview of the Three and Nine Months Results
Previous report
For the three months ended September 30, 2024, our consolidated revenue decreased by $542, or 4.7%, to $10,911, down from $11,453 during the three months ended September 30, 2023, primarily due to a decrease in sales of equipment from our Electrical Infrastructure segment during the three months ended September 30, 2024.
Previous report
For the nine months ended September 30, 2024, our consolidated revenue decreased by $7,450 or 22.4%, to $25,841, down from $33,291 during the nine months ended September 30, 2023, primarily due to a decrease in sales of equipment from our Electrical Infrastructure segment during the nine months ended September 30, 2024.
Previous report
Electrical Infrastructure. During the three months ended September 30, 2024, revenue from our equipment sales decreased by $4,165, or 48.1%, to $4,495, down from $8,660 during the three months ended September 30, 2023, primarily due to a decrease in shipments and revenue recognized over time from our equipment sales during the three months ended September 30, 2024.
Previous report
During the nine months ended September 30, 2024, revenue from our Electrical Infrastructure segment decreased by $12,130, or 48.8%, to $12,715, down from $24,845 during the nine months ended September 30, 2023, primarily due to a decrease in shipments and revenue recognized over time from our equipment sales during the nine months ended September 30, 2024.
Previous report
Critical Power Solutions. For the three months ended September 30, 2024, revenue for our Critical Power segment increased by $3,623, or 129.8%, to $6,416, up from $2,793 during the three months ended September 30, 2023, primarily due to an increase in equipment and service sales during the three months ended September 30, 2024. For the three months ended September 30, 2024, revenue from our equipment sales increased by $3,156, or 392%, to $3,961, up from $805 during the three months ended September 30, 2023, primarily due to delivering $3,000 of e-Boost equipment during the third quarter of 2024 and no comparable shipments during the third quarter of 2023.
Previous report
For the nine months ended September 30, 2024, revenue for our Critical Power segment increased by $4,680, or 55.4%, to $13,126, up from $8,446 during the nine months ended September 30, 2023, primarily due to an increase in equipment and service sales during the nine months ended September 30, 2024. For the nine months ended September 30, 2024, revenue from our equipment sales increased by $3,941, or 157.2%, to $6,448, up from $2,507 during the nine months ended September 30, 2023, primarily due to delivering $3,000 of e-Boost equipment during the third quarter of 2024 and no comparable shipments during 2023.
Previous report
For the three months ended September 30, 2024, our consolidated gross margin decreased to 18.9% of revenues, as compared to 32.3% during the three months ended September 30, 2023.
Previous report
For the nine months ended September 30, 2024, our consolidated gross margin decreased to 17.2% of revenues, as compared to 31.3% during the nine months ended September 30, 2023.
Previous report
Electrical Infrastructure. For the three months ended September 30, 2024, our gross margin percentage decreased by 25.5 percentage points, from 37.6% to 12.1%, as compared to the three months ended September 30, 2023. The decrease was primarily due to the decrease in sales of our power systems and switchgear equipment.
Previous report
For the nine months ended September 30, 2024, our gross margin percentage decreased by 21.7 percentage points, from 35.4% to 13.7%, as compared to the nine months ended September 30, 2023. The decrease was primarily due to the decrease in sales of our E-Bloc power systems and medium and low voltage switchgear equipment.
Previous report
Critical Power Solutions. For the three months ended September 30, 2024, our gross margin increased by 8 percentage points, from 15.7% to 23.7%, for the three months ended September 30, 2023. The increase was predominately due to the increase in sales of our e-Boost equipment from our Pioneer eMobility business in addition to an increase in service sales.
Previous report
For the nine months ended September 30, 2024, our gross margin increased by 1.5 percentage points, from 19.1% to 20.6%, for the nine months ended September 30, 2023. The increase was predominately due to the increase in sales of our equipment and service.
Previous report
For the nine months ended September 30, 2024, consolidated selling, general and administrative expense, before depreciation and amortization, increased by approximately $360, or 4.6%, to $8,176, as compared to $7,816 during the nine months ended September 30, 2023, primarily due to an increase in travel related costs. As a percentage of our consolidated revenue, selling, general and administrative expense, before depreciation and amortization, increased to 31.6% during the nine months ended September 30, 2024, as compared to 23.5% in the nine months ended September 30, 2023.
Previous report
Depreciation and Amortization Expense. Depreciation and amortization expense consists primarily of depreciation of fixed assets and amortization of right-of-use assets related to our finance leases, and excludes amounts included in cost of sales. For the three months ended September 30, 2024, consolidated depreciation and amortization expense decreased by $6, or 18.8%, to $26, as compared to $32 during the three months ended September 30, 2023.
Previous report
For the nine months ended September 30, 2024, consolidated depreciation and amortization expense decreased by $119, or 63.3%, to $69, as compared to $188 during the nine months ended September 30, 2023.
Previous report
(Loss) Income from Operations
Previous report
Operating income from our Electrical Infrastructure segment decreased by $7,832 during the nine months ended September 30, 2024, as compared to the nine months ended September 30, 2023, primarily due to a decrease in sales of our electrical infrastructure equipment and an increase in selling, general and administrative expense.
Previous report
Critical Power Solutions. Operating income from our Critical Power segment increased by $832 during the three months ended September 30, 2024, as compared to the three months ended September 30, 2023, primarily due to an increase in sales of our e-Boost equipment from our Pioneer eMobility business in addition to an increase in service sales.
Previous report
Operating loss from our Critical Power segment decreased by $605 during the nine months ended September 30, 2024, as compared to the nine months ended September 30, 2023, primarily due to an increase in sales of our e-Boost equipment from our Pioneer eMobility business in addition to an increase in service sales.
Previous report
General Corporate Expense. Our general corporate expenses consist primarily of executive management, corporate accounting and human resources personnel, corporate office expenses, financing and corporate development activities, payroll and benefits administration, treasury, tax compliance, legal, stock-based compensation, public reporting costs and costs not specifically allocated to reportable business segments.
Previous report
During the three months ended September 30, 2024, our unallocated corporate overhead expense decreased by $178, or 16.1%, as compared to the three months ended September 30, 2023, primarily due to a decrease in stock-based compensation expense.
Previous report
During the nine months ended September 30, 2024, our unallocated corporate overhead expense decreased by $319, or 9.0%, as compared to the nine months ended September 30, 2023, primarily due to a decrease in stock-based compensation expense.
Previous report
Non-Operating Expense (Income)
Previous report
For the three and nine months ended September 30, 2024, we had other non-operating expense of $1 and other non-operating income $39, respectively, as compared to other non-operating income of $11 and $4, respectively, during the three and nine months ended September 30, 2023.
Previous report
Net Loss (Income) per Share
Previous report
We generated a net loss of $4,439 during the nine months ended September 30, 2024, as compared to net income of $2,601 during the nine months ended September 30, 2023.
Previous report
Our net loss per basic and diluted share for the nine months ended September 30, 2024, was $0.42, as compared to net income per basic share of $0.26 for the nine months ended September 30, 2023.
Previous report
General. On October 20, 2020, we entered into an At the Market Sale Agreement with H.C. Wainwright & Co., LLC (“Wainwright”), pursuant to which we may offer and sell our shares of common stock from time to time through Wainwright, acting as sales agent or principal (the “ATM Program”). As of September 30, 2024, the Company had $3,080 of cash on hand generated primarily from the sale of common stock under the ATM Program. Since October 20, 2020, and through September 30, 2024, the Company sold an aggregate of 1,835,616 shares of common stock for aggregate gross proceeds of approximately $14,051, before any sales agent fees and expenses payable by us under the ATM Program. During the nine months ended September 30, 2024, the Company sold an aggregate of 919,557 shares of common stock for an aggregate consideration of approximately $5,147, before any sales agent fees and expenses payable by the Company under the ATM Program. As of September 30, 2024, $69,853 of common stock remained available for issuance under the ATM Program.
Reworded paragraphs (29)
Previous wording
Unless the context requires otherwise, references in this Quarterly Report on Form 10-Q to the “Company,” “Pioneer,” “we,” “our” and “us” refer to Pioneer Power Solutions, Inc. and its subsidiaries.
Current wording
Unless the context requires otherwise, references in this Quarterly Report on Form 10-Q to the “Company,” “Pioneer,” “we,” “our” and “us” refer to Pioneer Power Solutions, Inc. and its subsidiary.
Previous wording
The foregoing does not represent an exhaustive list of matters that may be covered by the forward-looking statements contained herein or risk factors that we are faced with that may cause our actual results to differ from those anticipated in our forward-looking statements. Moreover, new risks regularly emerge, and it is not possible for us to predict or articulate all risks we face, nor can we assess the impact of all risks on our business or the extent to which any risk, or combination of risks, may cause actual results to differ from those contained in any forward-looking statements. Except to the extent required by applicable laws or rules, we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. You should review carefully the risks and uncertainties described under the heading “Part II - Item 1A. Risk Factors” in this Quarterly Report on Form 10-Q and in the Quarterly Reports on Form 10-Q for the periods ended March 31, 2024, and June 30, 2024, and “Part I - Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2023, for a discussion of the foregoing and other risks that relate to our business and investing in shares of our common stock.
Current wording
The foregoing does not represent an exhaustive list of matters that may be covered by the forward-looking statements contained herein or risk factors that we are faced with that may cause our actual results to differ from those anticipated in our forward-looking statements. Moreover, new risks regularly emerge, and it is not possible for us to predict or articulate all risks we face, nor can we assess the impact of all risks on our business or the extent to which any risk, or combination of risks, may cause actual results to differ from those contained in any forward-looking statements. Except to the extent required by applicable laws or rules, we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. You should review carefully the risks and uncertainties described under the heading “Part II - Item 1A. Risk Factors” in this Quarterly Report on Form 10-Q and “Part I - Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024, for a discussion of the foregoing and other risks that relate to our business and investing in shares of our common stock.
Previous wording
We design, manufacture, integrate, refurbish, service, distribute and sell electric power systems, distributed energy resources, power generation equipment and mobile electric vehicle (“EV”) charging solutions. Our products and services are sold to a broad range of customers in the utility, industrial and commercial markets. Our customers include, but are not limited to, electric, gas and water utilities, data center developers and owners, EV charging infrastructure developers and owners, and distributed energy developers. We are headquartered in Fort Lee, New Jersey and operate from three (3) additional locations in the United States for manufacturing, service and maintenance, engineering, and sales and administration.
Current wording
We design, manufacture, integrate, service and sell distributed energy resources, on site power generation equipment and mobile EV charging solutions. Our products and services are sold to a broad range of customers in the utility, industrial and commercial markets. Our customers include, but are not limited to, Federal and State government entities, package delivery business’, school bus fleet operators, EV charging infrastructure developers and owners, and distributed energy developers. We are headquartered in Fort Lee, New Jersey and operate from two (2) additional locations in the United States for manufacturing, service and maintenance, engineering, and sales and administration.
Previous wording
Our consolidated financial statements have been prepared in accordance with U.S. GAAP. The preparation of our consolidated financial statements requires us to make estimates and assumptions that affect the amounts and disclosures in the consolidated financial statements. Our estimates are based on our historical experience, knowledge of current events and actions we may undertake in the future, and on various other factors that we believe are reasonable under the circumstances. Our critical accounting policies and estimates are described in “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Policies” in our Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on July 26, 2024. There were no material changes to our accounting policies during the nine months ended September 30, 2024.
Current wording
Our unaudited condensed consolidated financial statements have been prepared in accordance with U.S. GAAP. The preparation of our unaudited condensed consolidated financial statements requires us to make estimates and assumptions that affect the amounts and disclosures in the unaudited condensed consolidated financial statements. Our estimates are based on our historical experience, knowledge of current events and actions we may undertake in the future, and on various other factors that we believe are reasonable under the circumstances. Our critical accounting policies and estimates are described in “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Policies” in our Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on April 14, 2025. There were no material changes to our critical accounting estimates during the three months ended March 31, 2025.
Previous wording
Selected financial and operating data for our reportable business segments for the most recent reporting period is summarized below. This information, as well as the selected financial data provided in “Note 9 - Business Segment and Geographic Information” and in our unaudited condensed interim Consolidated Financial Statements and related notes included in this Quarterly Report on Form 10-Q, should be referred to when reading our discussion and analysis of results of operations below.
Current wording
Selected financial and operating data for our reportable business segment for the most recent reporting period is summarized below. This information, as well as the selected financial data provided in “Note 11 - Business Segment and Geographic Information” and in our unaudited condensed consolidated financial statements and related notes included in this Quarterly Report on Form 10-Q, should be referred to when reading our discussion and analysis of results of operations below.
Previous wording
Our summary of operating results during the three and nine months ended September 30, 2024, and 2023 are as follows:
Current wording
Our summary of operating results during the three months ended March 31, 2025, and 2024, are as follows:
Previous wording
Our backlog is based on firm orders from our customers expected to be delivered in the future, most of which is expected to occur during the next twelve months. Backlog may vary significantly from reporting period to reporting period due to the timing of customer commitments. Backlog reflects the amount of revenue we expect to realize upon the shipment of customer orders for our products that are not yet complete or for which work has not yet begun. As of September 30, 2024, backlog from our E-Bloc power systems and related equipment was approximately $13,236, or 20% of the total backlog.
Current wording
Revenue backlog, which consists of purchase orders and contracts from customers that we believe to be firm, reflects the amount of revenue that we expect to realize in the future upon the satisfaction of customer orders for our products or services that are not yet complete or for which work has not yet begun. Backlog may vary significantly from reporting period to reporting period due to the timing of customer commitments.
Previous wording
The following table represents the progression of our backlog, by reporting segment, as of the end of the last five quarters:
Current wording
The following table represents the progression of our backlog as of the end of the last five quarters:
Previous wording
The following table represents our revenues by reporting segment and major product category for the periods indicated (in thousands, except percentages):
Current wording
The following table represents our revenues by major product category for the periods indicated (in thousands, except percentages):
Previous wording
The following table represents our gross profit by reporting segment for the periods indicated (in thousands, except percentages):
Current wording
The following table represents our gross profit for the periods indicated (in thousands, except percentages):
Previous wording
The following table represents our operating expenses by reportable segment for the periods indicated (in thousands, except percentages):
Current wording
The following table represents our operating expenses for the periods indicated (in thousands, except percentages):
Previous wording
Selling, General and Administrative Expense. For the three months ended September 30, 2024, consolidated selling, general and administrative expense, before depreciation and amortization, increased by approximately $155, or 5.7%, to $2,881, as compared to $2,726 during the three months ended September 30, 2023, primarily due to an increase in professional fees. As a percentage of our consolidated revenue, selling, general and administrative expense, before depreciation and amortization, increased to 26.4% during the three months ended September 30, 2024, as compared to 23.8% in the three months ended September 30, 2023.
Current wording
Selling, General and Administrative Expense. For the three months ended March 31, 2025, consolidated selling, general and administrative expense increased by approximately $364, or 17.8%, to $2,414, as compared to $2,050 during the three months ended March 31, 2024, primarily due to an increase in professional fees. As a percentage of our consolidated revenue, selling, general and administrative expense decreased to 35.8% during the three months ended March 31, 2025, as compared to 61.8% during the three months ended March 31, 2024, primarily due to the increase in total revenue during the three-month period ended March 31, 2025.
Previous wording
The following table represents our operating (loss) income by reportable segment for the periods indicated (in thousands, except percentages):
Current wording
The following table represents our operating loss from continuing operations for the periods indicated (in thousands):
Previous wording
Electrical Infrastructure. Operating income from our Electrical Infrastructure segment decreased by $3,047 during the three months ended September 30, 2024, as compared to the three months ended September 30, 2023, primarily due to a decrease in sales of our electrical infrastructure equipment and an increase in selling, general and administrative expense.
Current wording
During the three months ended March 31, 2025, our operating loss from continuing operations increased by approximately $620, or 35.9%, to $2,346, as compared to $1,726 during the three months ended March 31, 2024, primarily due to the decrease in our gross profit and an increase in selling, general and administrative expense.
Previous wording
Interest Expense (Income). For the three and nine months ended September 30, 2024, we had interest expense of approximately $23 and interest income of approximately $25, respectively, as compared to interest income of approximately $60 and $192, respectively, during the three and nine months ended September 30, 2023. We generated the majority of our interest income from our cash on hand during the nine months ended September 30, 2024, and 2023.
Current wording
Interest Income. For the three months ended March 31, 2025, we had interest income of approximately $247, as compared to interest income of approximately $31 during the three months ended March 31, 2024. We generated the majority of our interest income from our cash on hand during the three-month periods ended March 31, 2025, and 2024.
Previous wording
Other Expense (Income). Other expense (income) in the consolidated statements of operations reports certain gains and losses associated with activities not directly related to our core operations.
Current wording
Other Income. Other income in the consolidated statements of operations reports certain gains and losses associated with activities not directly related to our core operations.
Previous wording
Provision for Income Taxes. Our effective income tax rate for the three and nine months ended September 30, 2024, and 2023 was 0.0%.
Current wording
Provision for Income Taxes. For the three months ended March 31, 2025 and 2024, the Company recorded no income tax provision, resulting in an effective tax rate (ETR) of 0%.
Previous wording
We generated a net loss of $1,121 during the three months ended September 30, 2024, as compared to net income of $1,011 during the three months ended September 30, 2023.
Current wording
We generated a net loss from continuing operations of $2,076 during the three months ended March 31, 2025, as compared to $1,655 during the three months ended March 31, 2024.
Previous wording
Our net loss per basic and diluted share for the three months ended September 30, 2024, was $0.10, as compared to net income per basic share of $0.10 for the three months ended September 30, 2023.
Current wording
Our net loss from continuing operations per basic and diluted share during the three months ended March 31, 2025, was $0.19, compared to a net loss from continuing operations per basic and diluted share of $0.16 during the three months ended March 31, 2024.
Previous wording
On October 29, 2024, we closed on the sale of our Pioneer Custom Electrical Products, LLC subsidiary for gross cash proceeds of $48,000.
Current wording
General. As of March 31, 2025, we had $25,840 of cash on hand generated primarily from the PCEP Sale. On October 29, 2024, we closed on the PCEP Sale for gross cash proceeds of $48,000 and $2,000 in equity. On January 7, 2025, we paid a one-time special cash dividend of an aggregate of $16,665. As of December 31, 2024, the Company recorded a consideration due to the buyer of the PCEP Sale of $3,347 related to a net working capital adjustment. On April 16, 2025, we and the buyer from the PCEP Sale finalized the net working capital adjustment and as a result, we recorded a $1,147 adjustment to the consideration due to the buyer of the PCEP Sale. Subsequent to March 31, 2025, we paid the $2,200 consideration to the buyer of the PCEP Sale.
Previous wording
The continuing impacts of the rising interest rates, inflation, changes in foreign currency exchange rates and geopolitical developments, such as the ongoing conflict between Russia and Ukraine, and the ongoing conflict between Israel and Hamas, have resulted, and may continue to result, in a global slowdown of economic activity, which may decrease demand for a broad variety of goods and services, including those provided by our clients, while also disrupting supply channels, sales channels and advertising and marketing activities for an unknown period of time. As a result of the current uncertainty in economic activity, we are unable to predict the potential size and duration of the impact on our revenue and our results of operations, if any. The extent of the potential impact of these macroeconomic factors on our operational and financial performance will depend on a variety of factors, including the extent of geopolitical disruption and its impact on our clients, partners, industry, and employees, all of which are uncertain at this time and cannot be accurately predicted. We continue to monitor the effects of these macroeconomic factors and intends to take steps deemed appropriate to limit the impact on our business. During the nine months ended September 30, 2024, we were able to operate substantially at capacity.
Current wording
The continuing impacts of the rising interest rates, inflation, changes in foreign currency exchange rates and geopolitical developments, such as the ongoing conflict between Russia and Ukraine, and the ongoing conflict between Israel and Hamas, have resulted, and may continue to result, in a global slowdown of economic activity, which may decrease demand for a broad variety of goods and services, including those provided by our clients, while also disrupting supply channels, sales channels and advertising and marketing activities for an unknown period of time. Additionally, recent changes to U.S. policy implemented by the U.S. Congress, the Trump administration or any new administration have impacted and may in the future impact, among other things, the U.S. and global economy, international trade relations, unemployment, immigration, healthcare, taxation, the U.S. regulatory environment, inflation and other areas. As a result of the current uncertainty in economic activity, we are unable to predict the potential size and duration of the impact on our revenue and our results of operations, if any. The extent of the potential impact of these macroeconomic factors on our operational and financial performance will depend on a variety of factors, including the extent of geopolitical disruption and its impact on our clients, partners, industry, and employees, all of which are uncertain at this time and cannot be accurately predicted. We continue to monitor the effects of these macroeconomic factors and intend to take steps deemed appropriate to limit the impact on our business. During the three months ended March 31, 2025, we were able to operate substantially at capacity.
Previous wording
Cash Used in Operating Activities. Cash used in our operating activities was $4,118 during the nine months ended September 30, 2024, as compared to $228 during the nine months ended September 30, 2023. The increase in cash used in operating activities is primarily due to the increase in our net loss and working capital fluctuations.
Current wording
Cash Provided by/ Used in Operating Activities. Cash provided by our operating activities was $1,502 during the three months ended March 31, 2025, as compared to cash used in our operating activities of $1,950 during the three months ended March 31, 2024. The decrease in cash used in operating activities is primarily due to working capital fluctuations.
Previous wording
Cash Used in Investing Activities. Cash used in investing activities during the nine months ended September 30, 2024, was $1,277, as compared to $2,345 during the nine months ended September 30, 2023. Additions to property and equipment during the nine months ended September 30, 2024, were $1,277, as compared to $2,345 of additions during the nine months ended September 30, 2023.
Current wording
Cash Used in Investing Activities. Cash used in investing activities during the three months ended March 31, 2025, was $595, as compared to cash used in our investing activities of $213 during the three months ended March 31, 2024. During the three-month periods ended March 31, 2025, and 2024, additions to our property and equipment were $595 and $213, respectively.
Previous wording
Cash Provided by/ (Used in) Financing Activities. Cash provided by our financing activities was $4,893 during the nine months ended September 30, 2024, as compared to cash used in financing activities of $142 during the nine months ended September 30, 2023. The increase in cash provided by financing activities is primarily due to the sale of common stock under the ATM Program.
Current wording
Cash Used in/ Provided by Financing Activities. Cash used in our financing activities was $16,689 during the three months ended March 31, 2025, as compared to cash provided by our financing activities $4,808 during the three months ended March 31, 2024. The increase in cash used in financing activities is primarily due to the payment of a one-time special cash dividend.
Previous wording
Working Capital. As of September 30, 2024, we had working capital of $9,103, including $3,080 of cash on hand, compared to working capital of $9,421, including $3,582 of cash on hand as of December 31, 2023.
Current wording
Working Capital. As of March 31, 2025, we had working capital of $26,151, including $25,840 of cash on hand, compared to working capital of $26,679, including $41,622 of cash on hand as of December 31, 2024.
Previous wording
Assessment of Liquidity. As of September 30, 2024, we had $3,080 of cash on hand generated primarily from the sale of common stock under the ATM Program. We have historically met our cash needs through a combination of cash flows from operating activities and bank borrowings, the completion of the sale of the transformer business units in August 2019 and the sale of common stock under the ATM Program. Historically, our cash requirements were generally for operating activities, debt repayment, capital improvements and acquisitions.
Current wording
Assessment of Liquidity. As of March 31, 2025, we had $25,840 of cash on hand generated primarily from the PCEP Sale. We have historically met our cash needs through a combination of cash flows from operating activities and bank borrowings, the completion of the sale of the transformer business units in August 2019, the completion of the PCEP Sale in October 2024 and the sale of common stock. Historically, our cash requirements were generally for operating activities, debt repayment, capital improvements and acquisitions.
Previous wording
We expect to meet our cash needs with our working capital and cash flows from operating activities. We expect our cash requirements to be generally for operating activities, capital improvements and product development. We expect that product development and promotional activities related to our new initiatives will continue in the near future and we expect to continue to incur costs related to such activities. We expect that our cash balance is sufficient to fund operations for the next twelve months from the date our unaudited condensed interim consolidated financial statements are issued.
Current wording
We expect to meet our cash needs with our working capital and cash flows from operating activities. We expect our cash requirements to be generally for operating activities, capital improvements and product development. We expect that product development and promotional activities related to our new initiatives will continue in the near future and we expect to continue to incur costs related to such activities. We expect that our cash balance is sufficient to fund operations for the next twelve months from the date our unaudited condensed consolidated financial statements are issued.
Previous wording
The Company had $1,277 of additions to property and equipment during the nine months ended September 30, 2024, as compared to $2,345 of additions to property and equipment during the nine months ended September 30, 2023.
Current wording
Our additions to property and equipment were $595 during the three months ended March 31, 2025, as compared to $213 of additions during the three months ended March 31, 2024.
Previous wording
We believe that our future operating results will continue to be subject to quarterly variations based upon a wide variety of factors, including the cyclical nature of the electrical equipment industry and the markets for our products and services. Our operating results could also be impacted by changing customer requirements and exposure to fluctuations in prices of important raw supplies, such as copper, steel and aluminum. We have various insurance policies, including cybersecurity, covering risks in amounts that we consider adequate. In addition to these measures, we attempt to recover other cost increases through improvements to our manufacturing efficiency and through increases in prices where competitively feasible. Lastly, other economic conditions we cannot foresee may affect customer demand. In addition, the consequences of the ongoing geopolitical conflicts, such as the ongoing conflict between Russia and Ukraine and the ongoing conflict between Israel and Hamas, including related sanctions and countermeasures, and the effects of rising global inflation, are difficult to predict, and could adversely impact geopolitical and macroeconomic conditions, the global economy, and contribute to increased market volatility, which may in turn adversely affect our business and operations. We predominately sell to customers in the industrial production and commercial construction markets. Accordingly, changes in the condition of any of our customers may have a greater impact than if our sales were more evenly distributed between different end markets. For a further discussion of factors that may affect future operating results see the sections entitled “Special Note Regarding Forward-Looking Statements” in this Quarterly Report on Form 10-Q and “Part I - Item 1A. Risk Factors” in our Annual Report on Form 10-K.
Current wording
We believe that our future operating results will continue to be subject to quarterly variations based upon a wide variety of factors, including the cyclical nature of the electrical equipment industry and the markets for our products and services. Our operating results could also be impacted by changing customer requirements and exposure to fluctuations in prices of important raw supplies, such as copper, steel and aluminum. We have various insurance policies, including cybersecurity, covering risks in amounts that we consider adequate. In addition to these measures, we attempt to recover other cost increases through improvements to our manufacturing efficiency and through increases in prices where competitively feasible. Lastly, other economic conditions we cannot foresee may affect customer demand. In addition, the consequences of the ongoing geopolitical conflicts, such as the ongoing conflict between Russia and Ukraine and the ongoing conflict between Israel and Hamas, including related sanctions and countermeasures, and the effects of rising global inflation, are difficult to predict, and could adversely impact geopolitical and macroeconomic conditions, the global economy, and contribute to increased market volatility, which may in turn adversely affect our business and operations. Additionally, recent changes to U.S. policy implemented by the U.S. Congress, the Trump administration or any new administration have impacted and may in the future impact, among other things, the U.S. and global economy, international trade relations, unemployment, immigration, healthcare, taxation, the U.S. regulatory environment, inflation and other areas. We predominately sell to customers in the industrial production and commercial construction markets. Accordingly, changes in the condition of any of our customers may have a greater impact than if our sales were more evenly distributed between different end markets. For a further discussion of factors that may affect future operating results see the sections entitled “Special Note Regarding Forward-Looking Statements” in this Quarterly Report on Form 10-Q and “Part I - Item 1A. Risk Factors” in our Annual Report on Form 10-K.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
U.S. dollars are reported in thousands, except for share and per share amounts (unless otherwise noted).