SolarMax Technology, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>SolarMax Technology, Inc. filed its 2023 10-K, reporting $297.2M in assets and $41.0M in net income.</b>

AI Summary

SolarMax Technology, Inc. (SMXT) filed a Annual Report (10-K) with the SEC on April 16, 2024. SolarMax Technology, Inc. reported total assets of $297,225,000 for the fiscal year ended December 31, 2023. The company's net income for the fiscal year ended December 31, 2023, was $40,983,881. Earnings per share (EPS) for the fiscal year ended December 31, 2023, were $0.247. Total debt for SolarMax Technology, Inc. was $1,000,000 as of December 31, 2023. The company's operating margin for the fiscal year ended December 31, 2023, was 0.026.

Why It Matters

For investors and stakeholders tracking SolarMax Technology, Inc., this filing contains several important signals. The filing provides a comprehensive overview of SolarMax Technology's financial performance and position for the fiscal year 2023, including key metrics like revenue, net income, and assets. Subsequent events detailed in the filing, such as underwriting agreements and initial public offerings in early 2024, indicate potential future financing activities and strategic moves for the company.

Risk Assessment

Risk Level: medium — SolarMax Technology, Inc. shows moderate risk based on this filing. The company's financial performance and future outlook are subject to market conditions and execution risks, as evidenced by the reported financial figures and subsequent events like IPOs.

Analyst Insight

Investors should closely examine the company's revenue growth, profitability trends, and the success of its recent financing activities to assess future investment potential.

Financial Highlights

operating Margin

0.026

total Assets

297225000

total Debt

1000000

net Income

40983881

eps

0.247

Key Numbers

• 297,225,000 — Total Assets (As of December 31, 2023.)
• 40,983,881 — Net Income (For the fiscal year ended December 31, 2023.)
• 0.247 — EPS (For the fiscal year ended December 31, 2023.)
• 1,000,000 — Total Debt (As of December 31, 2023.)
• 0.026 — Operating Margin (For the fiscal year ended December 31, 2023.)

Key Players & Entities

• SolarMax Technology, Inc. (company) — Filer of the 10-K report.
• 2023-12-31 (date) — Fiscal year end date for the reported period.
• 2024-04-16 (date) — Filing date of the 10-K report.
• Riverside, CA (location) — Business and mailing address of SolarMax Technology, Inc.
• NV (location) — State of incorporation for SolarMax Technology, Inc.

FAQ

Industry Context

SolarMax Technology, Inc. operates in the construction sector, specifically in special trade contracting.

Regulatory Implications

The filing is made under the Securities Exchange Act of 1934, requiring public companies to submit annual reports.

What Investors Should Do

1. Review the detailed financial statements for revenue, expenses, and cash flows.
2. Analyze the 'Subsequent Events' section for any material changes or transactions post-fiscal year-end.
3. Investigate the company's debt structure and any new financing arrangements mentioned.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-04-16: Filing Date — Date the 10-K was officially filed with the SEC.

Year-Over-Year Comparison

This 10-K filing provides the annual financial overview for the fiscal year ending December 31, 2023, superseding previous quarterly and annual reports.

Key Financial Figures

• $0.001 — ch registered Common Stock, par value $0.001 per share SMXT The Nasdaq Stock Mar
• $17.0 million — elated parties, which was approximately $17.0 million at December 31, 2023 as well as money o
• $14.25 million — of common stock upon conversion of the $14.25 million principal amount of outstanding convert
• $54.1 million — States operations generated revenue of $54.1 million for the year ended December 31, 2023, c
• $50.5 m — sisting of solar and battery revenue of $50.5 million, LED revenue of $3.1 million and
• $3.1 million — evenue of $50.5 million, LED revenue of $3.1 million and finance revenue of $0.6 million. Ou
• $0.6 million — of $3.1 million and finance revenue of $0.6 million. Our United States operations generated
• $45.5 million — States operations generated revenue of $45.5 million for the year ended December 31, 2022, c
• $40.6 m — sisting of solar and battery revenue of $40.6 million, LED revenue of $3.3 million and
• $3.3 million — evenue of $40.6 million, LED revenue of $3.3 million and finance revenue of $0.8 million. W
• $0.8 million — of $3.3 million and finance revenue of $0.8 million. We commenced operations in China foll
• $4.00 — 0 shares of common stock, at a price of $4.00 per share in our initial public offerin
• $18 m — The gross proceeds of the offering were $18 million, prior to deducting the underwrit
• $18.6 million — er-allotment option, were approximately $18.6 million. We also issued to Kingswood, a divisio
• $125 million — ted States market is projected to reach $125 million by 2030. California is the leading stat

Filing Documents

• solarmax_10k.htm (10-K) — 2608KB
• solarmax_ex141.htm (EX-14.1) — 43KB
• solarmax_1023.htm (EX-10.23) — 6KB
• solarmax_ex191.htm (EX-19.1) — 84KB
• solarmax_ex311.htm (EX-31.1) — 13KB
• solarmax_ex312.htm (EX-31.2) — 10KB
• solarmax_ex321.htm (EX-32.1) — 5KB
• solarmax_ex971.htm (EX-97.1) — 17KB
• solarmax_10kimg1.jpg (GRAPHIC) — 57KB
• 0001640334-24-000675.txt (&nbsp;) — 11989KB
• solarmax-20231231.xsd (EX-101.SCH) — 106KB
• solarmax-20231231_lab.xml (EX-101.LAB) — 575KB
• solarmax-20231231_cal.xml (EX-101.CAL) — 78KB
• solarmax-20231231_pre.xml (EX-101.PRE) — 495KB
• solarmax-20231231_def.xml (EX-101.DEF) — 307KB
• solarmax_10k_htm.xml (XML) — 2202KB

Business

Item 1. Business 5

Risk Factors

Item 1A. Risk Factors 29

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 66

Cybersecurity

Item 1C. Cybersecurity 66

Properties

Item 2. Properties 67

Legal Proceedings

Item 3. Legal Proceedings 67

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 67 Part II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 68

[ Reserved ]

Item 6. [ Reserved ] 69

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 69

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 85

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 85

Changes in and Disagreements with Accountants on Accounting and Financial Disclosures

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosures 85

Controls and Procedures

Item 9A. Controls and Procedures 85

Other Information

Item 9B. Other Information 86

Disclosure Regarding Foreign Jurisdiction that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdiction that Prevent Inspections. 86 Part III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 87

Executive Compensation

Item 11. Executive Compensation 90

Security Ownership of Certain Beneficial Owner and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owner and Management and Related Stockholder Matters 93

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 94

Principal Accounting Fees and Services

Item 14. Principal Accounting Fees and Services 96 Part IV

Exhibits, Financial Statement Schedules

Item 15. Exhibits, Financial Statement Schedules 98

Form 10-K Summary

Item 16. Form 10-K Summary 99

Signatures

Signatures 100 2 Table of Contents CAUTIONARY NOTE CONCERNING FORWARD-LOOKING STATEMENTS This annual report contains forward-looking statements that involve risks and uncertainties. You should not place undue reliance on these forward-looking statements. Our actual results could differ materially from those anticipated in the forward-looking statements for many reasons, including the reasons described in "Item 1A. Risk Factors," "Item 7. Management Discussion and Analysis of Financial Condition and Result of Operations," and "Item 1. Business" sections of this annual report. In some cases, you can identify these forward-looking statements by terms such as "anticipate," "believe," "continue," "could," "depends," "estimate," "expects," "intend," "may," "ongoing," "plan," "potential," "predict," "project," "should," "will," "would" or the negative of those terms or other similar expressions, although not all forward-looking statements contain those words. Our operations and business prospects are always subject to risks and uncertainties including, among others: Our ability to obtaining any financing we may require to enable us to restart our financing of our customer's purchase of solar systems and to finance any solar projects in China; Our ability to pay or finance our existing debt to related parties, which was approximately $17.0 million at December 31, 2023 as well as money owned to chief executive officer, and the potential market impact of our proposed refinancing of our EB-5 debt through the issuance of secured convertible notes and the issuance of common stock upon conversion of the $14.25 million principal amount of outstanding convertible notes at March 31, 2024 as well as any convertible notes which may be issued in the future; Our ability to enter into agreements for the construction of solar farms in China and to price such agreements in a manner to enable us to make a profit on the transaction; Our dependence for revenue for our Chinese

Business

Item 1. Business Introduction We are an integrated solar and renewable energy company. A solar energy system retains the direct current (DC) electricity from the sun and converts it to alternating current (AC) electricity that can be used to power residential homes and commercial businesses. The solar business is based on the ability of the users of solar energy systems to save on energy costs and reduce their carbon imprint as compared with power purchased from the local electricity utility company. We were founded in 2008 to engage in the solar business in the United States. We operate in two segments – the United States segment and the China segment. Our United States operations primarily consist of the sale and installation of photovoltaic and battery backup systems for residential and commercial customers, and sales of LED systems and services to government and commercial users. Prior to 2020, we also financed the purchase of solar equipment from us. Since early 2020, because we did not have the capital to support such operations, we suspended making loans to our solar customers, and we are not currently financing the purchase of solar systems and we do not anticipate engaging in such activities in the near future, if at all. Our finance revenue reflects revenue earned on our current portfolio, with no new loans having been added since early 2020. Our United States operations generated revenue of $54.1 million for the year ended December 31, 2023, consisting of solar and battery revenue of $50.5 million, LED revenue of $3.1 million and finance revenue of $0.6 million. Our United States operations generated revenue of $45.5 million for the year ended December 31, 2022, consisting of solar and battery revenue of $40.6 million, LED revenue of $3.3 million and finance revenue of $0.8 million. We commenced operations in China following the completion of two acquisitions on April 28, 2015. We acquired the ownership of Chengdu Zhonghong Tianhao Technology Co.

View Full Filing

View this 10-K filing on SEC EDGAR