Pineapple Energy Inc. Reports 8-K Filing

TL;DR

Pineapple Energy Inc. filed an 8-K on July 19th, indicating major corporate changes and potential shifts in control.

AI Summary

Pineapple Energy Inc. filed an 8-K on July 25, 2024, reporting material modifications to security holder rights and other events as of July 19, 2024. The filing indicates changes in control and amendments to its articles of incorporation or bylaws. Specific details regarding the nature of these modifications and changes were not fully elaborated in the provided text.

Why It Matters

This 8-K filing signals significant corporate actions by Pineapple Energy Inc., potentially impacting its structure, governance, or shareholder rights.

Risk Assessment

Risk Level: medium — The filing indicates material modifications to rights of security holders and changes in control, which can introduce uncertainty and risk.

Key Players & Entities

• Pineapple Energy Inc. (company) — Registrant
• July 19, 2024 (date) — Date of earliest event reported
• July 25, 2024 (date) — Filing date
• Minnesota (location) — State of incorporation

FAQ

Key Financial Figures

• $0.05 — f the Company's common stock, par value $0.05 per share (the "Common Stock"), authori
• $1.00 — y's Series B Preferred Stock, par value $1.00 per share (the "Series B Preferred Stoc
• $2,500,000 — ule 5550(b)(1) to maintain a minimum of $2,500,000 in stockholders' equity for continued l
• $11.2 million — ported stockholders' equity of negative $11.2 million in its Form 10-Q for the period ended M
• $2.5 million — s it has stockholders' equity above the $2.5 million requirement under the Equity Rule as th

Filing Documents

• pegy240767_8k.htm (8-K) — 72KB
• pegy240767_ex3-1.htm (EX-3.1) — 5KB
• pegy240767_ex10-1.htm (EX-10.1) — 148KB
• 0000897101-24-000329.txt ( ) — 434KB
• pegy-20240718.xsd (EX-101.SCH) — 3KB
• pegy-20240718_lab.xml (EX-101.LAB) — 33KB
• pegy-20240718_pre.xml (EX-101.PRE) — 22KB
• pegy240767_8k_htm.xml (XML) — 4KB

03 Material Modifications to Rights of Security Holders

Item 3.03 Material Modifications to Rights of Security Holders. The information contained in Item 5.03 under the heading, "Elimination of Series B Preferred Stock," is incorporated by reference into this Item 3.03.

01 Departure of Directors or Certain Officers; Election

Item 5.01 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. Amendment to Equity Plan As reported below in Item 5.07, on July 19, 2024, the shareholders of Pineapple Energy Inc. (the "Company") approved an amendment to the Company's 2022 Equity Incentive Plan (the "2022 Equity Plan") to increase the number of shares of the Company's common stock, par value $0.05 per share (the "Common Stock"), authorized for issuance under the 2022 Equity Plan, and the number of shares of Common Stock that can be issued as incentive stock options under the 2022 Equity Plan, in each case from 83,333 to 666,666 shares (collectively, the "Plan Amendments") on a post-split basis reflecting the 1-for-15 reverse stock split that took effect on June 12, 2024 (the "June 2024 Reverse Stock Split"). The Plan Amendments were included as Proposal 7 in the Company's definitive proxy statement (the "Proxy Statement") for its Annual Meeting of Shareholders filed with the Securities and Exchange Commission (the "SEC") on May 29, 2024. A copy of the 2022 Equity Plan, as amended to reflect the Plan Amendments, is attached as Exhibit 10.1 to this Current Report on Form 8-K and is incorporated herein by reference.

03. Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year

Item 5.03. Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year. Increase in Authorized Shares As reported below in Item 5.07, on July 19, 2024, the shareholders of the Company approved an amendment to the Company's Fourth Amended and Restated Articles of Incorporation (the "Articles of Incorporation") to increase the number of authorized shares of Common Stock to a total of 133,333,333 shares (the "Share Amendment") on a post-split basis reflecting the June 2024 Reverse Stock Split. The Share Amendment, which was included as Proposal 6 in the Proxy Statement, became effective on July 24, 2024 upon filing of Articles of Amendment to the Articles of Incorporation with the Secretary of State of the State of Minnesota. A copy of the Articles of Amendment as filed with the Secretary of State of the State of Minnesota is attached as Exhibit 3.1 to this Current Report on Form 8-K and is incorporated herein by reference. Elimination of Series B Preferred Stock As previously reported, on May 13, 2024, the Company issued and sold one share of the Company's Series B Preferred Stock, par value $1.00 per share (the "Series B Preferred Stock"). As described in Item 5.07 below, on July 19, 2024, the Company's shareholders approved proposals relating to a reverse stock split and an increase in the Company's authorized number of shares of Common Stock and, as a result, the Series B Preferred Stock was automatically, and without any further action, cancelled for no consideration.

07. Submission of Matters to a Vote of Security Holders

Item 5.07. Submission of Matters to a Vote of Security Holders. On July 19, 2024, the Company held its reconvened 2024 Annual Meeting of Shareholders (the "Reconvened Annual Meeting"). At the Reconvened Annual Meeting, the Company's shareholders voted on the eight proposals described below. The proposals presented at the Reconvened Annual Meeting are described in detail in the Proxy Statement. Of the 108,546,773 shares of Common Stock outstanding and entitled to vote, and the one share of Series B Preferred Stock, at the Reconvened Annual Meeting, 55,485,322, or 51.1%, of the outstanding shares, were present either in person or by proxy. Holders of Common Stock voted one vote per share on all matters properly brought before the Reconvened Annual Meeting. The holder of the Series B Preferred Stock voted 5,000,000,000 votes per share for only the Reverse Stock Split Proposal and the Authorized Share Amendment Proposal, and one vote per share for each of the director nominees. The Series B Preferred Stock was not entitled to vote on any other matters. Holders of record of shares of Common Stock and the Series B Preferred Stock voted on the election of directors, the Reverse Stock Split Proposal and the Authorized Share Amendment Proposal as a single class. Therefore, a total of (i) 108,546,774 votes were entitled to be cast at the meeting with respect to the election of each of the six directors, (ii) 108,546,773 votes were entitled to be cast at the meeting with respect to each of the Auditor Ratification Proposal, Say-On-Pay Proposal, Say-On-Frequency Proposal, the Equity Incentive Plan Amendment Proposal, and the Adjournment Proposal and (iii) 5,108,546,773 votes were entitled to be cast at the meeting with respect to each of the Reverse Stock Split Proposal and the Authorized Share Amendment Proposal. The results for each of the proposals submitted to a vote of shareholders at the Reconvened Annual Meeting are as follows: Proposal 1: Election of Directors Pro

01. Other Events

Item 8.01. Other Events. Nasdaq Compliance On July 18, 2024, the Company received a notice (the "Notice") from the Listing Qualifications Department (the "Staff") of the Nasdaq Stock Market informing the Company that it has regained compliance with the bid price requirement in Listing Rule 5550(a)(2) (the "Bid Price Rule"), and that, as a result, the Company will be subject to a Mandatory Panel Monitor for a period of one year from the date of this letter in accordance with Listing Rule 5815(d)(4)(B). If, within that one-year monitoring period, the Staff finds the Company again out of compliance with the Bid Price Rule, the Company will not be permitted to provide the Staff with a plan of compliance with respect to that deficiency and the Staff will not be permitted to grant additional time for the Company to regain compliance with respect to that deficiency, nor will the Company be afforded an applicable cure or compliance period pursuant to Rule 5810(c)(3). Instead, the Staff will issue a Delist Determination Letter and the Company will have an opportunity to request a new hearing with the initial panel or a newly convened Hearings Panel if the initial panel is unavailable. The Company will have the opportunity to respond/present to the Hearings Panel as provided by Listing Rule 5815(d)(4)(C). The Company's securities may be at that time delisted from Nasdaq. The Notice also reminded the Company that while the Company has regained compliance with the Bid Price Rule, it is still required to regain compliance with the equity requirement in Listing Rule 5550(b)(1) (the "Equity Rule"). As previously disclosed, On May 16, 2024, the Company received a notice from the Staff informing the Company that it no longer complies with the requirement under Nasdaq Listing Rule 5550(b)(1) to maintain a minimum of $2,500,000 in stockholders' equity for continued listing on the Nasdaq Capital Market because the Company reported stockholders' equity of negative $11.2 million

01. Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits. The following exhibits are being filed with this Current Report on Form 8-K: EXHIBIT INDEX Exhibit No. Description 3.1 Articles of Amendment to the Articles of Incorporation, dated July 24, 2024. 10.1 Pineapple Energy Inc. 2022 Equity Incentive Plan, as amended through July 19, 2024. 104 Cover Page Interactive Data File (embedded within the Inline XBRL document) Forward-Looking This Current Report on Form 8-K includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the Company's current expectations or beliefs and are subject to uncertainty and changes in circumstances, including the Company's ability to regain compliance with Nasdaq's listing standards, its ability to effect another reverse stock split, and its efforts to manage costs, including the possibility of a change in domicile. While the Company believes its plans, intentions, and expectations reflected in those forward-looking statements are reasonable, these plans, intentions, or expectations may not be achieved. For information about the factors that could cause such differences, please refer to the Company's filings with the Securities and Exchange Commission, including, without limitation, the statements made under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2023 and in subsequent filings. The Company does not undertake any obligation to update or revise these forward-looking statements for any reason, except as required by law.

SIGNATUREs

SIGNATUREs Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. PINEAPPLE ENERGY INC By: /s/ Scott Maskin Scott Maskin, Interim Chief Executive Officer Date: July 25, 2024

View Full Filing

View this 8-K filing on SEC EDGAR