Energy Focus, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Energy Focus, Inc. has submitted its annual 10-K filing for the fiscal year ended December 31, 2023, providing a comprehensive overview of its financial performance and operations.</b>

AI Summary

ENERGY FOCUS, INC/DE (EFOI) filed a Annual Report (10-K) with the SEC on March 22, 2024. Energy Focus, Inc. filed its 2023 Form 10-K on March 22, 2024. The filing covers the fiscal year ending December 31, 2023. The company is incorporated in Ohio and operates in the Electric Lighting & Wiring Equipment sector. The filing includes financial data for the fiscal years 2023 and 2022. Key financial statement details such as common stock, preferred stock, and retained earnings are presented for multiple periods.

Why It Matters

For investors and stakeholders tracking ENERGY FOCUS, INC/DE, this filing contains several important signals. This 10-K filing provides investors with the company's audited financial statements, offering insights into its revenue, expenses, and overall financial health for the 2023 fiscal year. The detailed information within the 10-K allows stakeholders to assess the company's performance, identify potential risks, and make informed investment decisions regarding Energy Focus, Inc.

Risk Assessment

Risk Level: medium — ENERGY FOCUS, INC/DE shows moderate risk based on this filing. The company's financial statements are presented for the fiscal years ending December 31, 2023, and 2022, indicating a need to analyze trends and performance over this period, which may reveal financial challenges or successes.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to understand Energy Focus, Inc.'s financial position and future outlook.

Key Numbers

• 20231231 — Fiscal Year End (Conformed Period of Report)
• 20240322 — Filing Date (Filed As Of Date)
• 2023 — Fiscal Year (Fiscal Year)
• 2022 — Fiscal Year (Fiscal Year)

Key Players & Entities

• ENERGY FOCUS, INC/DE (company) — Filer name
• 0000924168 (company) — Central Index Key
• 3640 (company) — Standard Industrial Classification
• OH (company) — State of Incorporation
• 32000 AURORA ROAD (company) — Business Address Street 1
• SOLON (company) — Business Address City
• 44139 (company) — Business Address ZIP
• FIBERSTARS INC /CA/ (company) — Former Company Name

FAQ

Industry Context

Energy Focus, Inc. operates within the Electric Lighting & Wiring Equipment industry, a sector focused on the manufacturing and distribution of lighting products and related electrical components.

Regulatory Implications

As a publicly traded company, Energy Focus, Inc. is subject to the regulations of the Securities and Exchange Commission (SEC), requiring regular filings such as the annual 10-K report.

What Investors Should Do

1. Review the full 10-K filing for detailed financial statements and management's discussion and analysis.
2. Analyze the company's revenue streams, cost structure, and profitability trends from the provided financial data.
3. Assess the risk factors outlined in the filing to understand potential challenges facing Energy Focus, Inc.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-03-22: Filing Date — Date the 10-K was officially filed with the SEC.

Year-Over-Year Comparison

This filing represents the annual 10-K for the fiscal year 2023, providing a comprehensive update compared to previous filings.

Key Financial Figures

• $0.0001 — ich registered Common stock, par value $0.0001 per share EFOI The Nasdaq Stock Market
• $1.81 — when the last reported sales price was $1.81 per share. Number of the registrant's

Filing Documents

• efoi-20231231.htm (10-K) — 1687KB
• ex231-10xk123123.htm (EX-23.1) — 3KB
• ex311-10xk123123.htm (EX-31.1) — 11KB
• ex321-10xk123123.htm (EX-32.1) — 5KB
• ext971compensationrecovery.htm (EX-97.1) — 21KB
• 0001628280-24-012713.txt (&nbsp;) — 9054KB
• efoi-20231231.xsd (EX-101.SCH) — 75KB
• efoi-20231231_cal.xml (EX-101.CAL) — 78KB
• efoi-20231231_def.xml (EX-101.DEF) — 404KB
• efoi-20231231_lab.xml (EX-101.LAB) — 711KB
• efoi-20231231_pre.xml (EX-101.PRE) — 591KB
• efoi-20231231_htm.xml (XML) — 1161KB

RISK FACTORS 11

ITEM 1A. RISK FACTORS 11

UNRESOLVED STAFF COMMENTS 24

ITEM 1B. UNRESOLVED STAFF COMMENTS 24

CYBERSECURITY 24

ITEM 1C. CYBERSECURITY 24

PROPERTIES 25

ITEM 2. PROPERTIES 25

LEGAL PROCEEDINGS 25

ITEM 3. LEGAL PROCEEDINGS 25

MINE SAFETY DISCLOSURES 26

ITEM 4. MINE SAFETY DISCLOSURES 26 PART II

MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES 27

ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES 27

[RESERVED] 27

ITEM 6. [RESERVED] 27

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 28

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 28

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 36

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 36

FINANCIAL STATEMENTS 37

ITEM 8. FINANCIAL STATEMENTS 37

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 72

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 72

CONTROLS AND PROCEDURES 72

ITEM 9A. CONTROLS AND PROCEDURES 72

OTHER INFORMATION 72

ITEM 9B. OTHER INFORMATION 72

DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 72

ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 72 PART III

DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 73

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 73

EXECUTIVE COMPENSATION 73

ITEM 11. EXECUTIVE COMPENSATION 73

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS 73

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS 73

CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE 73

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE 73

PRINCIPAL ACCOUNTING FEES AND SERVICES 73

ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES 73 PART IV

EXHIBITS, FINANCIAL STATEMENT SCHEDULES 73

ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES 73

FORM 10-K SUMMARY 76

ITEM 16. FORM 10-K SUMMARY 76 SIGNATURES 77 1 Table of Contents PART I

Forward-Looking Statements

Forward-Looking Statements Unless the context otherwise requires, all references to "Energy Focus," "we," "us," "our," "our company," or "the Company" refer to Energy Focus, Inc., a Delaware corporation, and its consolidated subsidiary for the applicable periods, considered as a single enterprise. This Annual Report on Form 10-K (this "Annual Report") includes statements that express our opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results and therefore are, or may be deemed to be, "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 Securities Exchange Act of 1934, as amended (the "Exchange Act"). These forward-looking statements can generally be identified by the use of forward-looking terminology, including the terms "believes," "estimates," "anticipates," "expects," "feels," "seeks," "forecasts," "projects," "intends," "plans," "may," "will," "should," "could" or "would" or, in each case, their negative or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts. They appear in a number of places throughout this Annual Report and include statements regarding our intentions, beliefs, or current expectations concerning, among other things, our results of operations, financial condition, liquidity, prospects, growth, strategies, capital expenditures, and the industry in which we operate. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Although we base these forward-looking statements on assumptions that we believe are reasonable when made in light of the information currently available to us, we caution you that forward-looking statements are not guarantees of future performance and that our actual result

BUSINESS

ITEM 1. BUSINESS Overview Energy Focus engages primarily in the design, development, manufacturing, marketing and sale of energy-efficient lighting systems and controls. We develop, market and sell high quality light-emitting diode ("LED") lighting and controls products in the commercial market and military maritime market ("MMM"). Our mission is to enable our customers to run their facilities, offices and homes with greater energy efficiency, productivity, and human health and wellness through advanced LED retrofit solutions. Our goal is to be a market leader for the most demanding applications where performance, quality, value, environmental impact and health are considered paramount. We specialize in energy-efficient LED lighting retrofit product, replacing fluorescent, high-intensity discharge ("HID") lighting and other types of lamps in institutional buildings for primarily indoor lighting applications with our innovative, high-quality commercial and military-grade tubular LED ("TLED") products, as well as other LED and lighting control products for commercial and consumer applications. We are also evaluating adjacent technologies including Gallium Nitride ("GaN") based power supplies and opportunities for energy solutions products that support sustainability in our existing channels. The LED lighting industry has changed dramatically over the past several years due to increasing competition and price erosion. We have been experiencing these industry forces in both our military and commercial business since 2016, when we once commanded significant price premiums for our flicker-free TLEDs with industry leading warranties. In more recent years, we have focused on redesigning our products for lower costs and consolidated our supply chain for stronger purchasing power in an effort to price our products more competitively while not impacting the performance and quality. Despite these efforts, our legacy products continue to face extreme price competition and a

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View this 10-K filing on SEC EDGAR