Mr. Zen
8 months ago
Item 1.01. Entry into a Material Definitive Agreement.
On August 30, 2023, iSun, Inc., a Delaware corporation (the “Company”), entered into a letter agreement (the “First Letter Agreement”) by and between the Company and each of Anson Investments Master Fund LP and Anson East Master Fund LP (together, the “Investors”) regarding a modification of the terms of those certain Senior Secured Convertible Promissory Notes issued to the Investors, dated November 4, 2022 (the “Notes”). The Notes are described in the Company’s Current Report on Form 8-K, filed with the Commission on November 8, 2022. Under the Notes, the Company covenanted that it meet certain EBITDA targets, including EBITDA of $500,000 for the quarter ended June 30, 2023. The Company had an EBITDA loss of $617,000 during the quarter ended June 30, 2023. Under the Notes, a failure to fulfill the EBITDA financial covenant is defined as an Event of Default. For such an Event of Default, the Investors may accelerate all amounts due under the Notes. The Investors have agreed to a waiver of the Event of Default upon the terms set forth in the First Letter Agreement, including that the Company shall pay the Investors the aggregate amount of $1,442,307.69 of the principal amount of the Notes by wire transfer within 30 days of the date of the Letter Agreement, that the Fixed Conversion Price of the Notes shall be adjusted to $1.00, and that the Company shall issue warrants to the Investors as described in Item 3.02, below.
On August 30, 2023, the Company entered into a second letter agreement with the Investors (the “Second Letter Agreement”). The Second Letter Agreement provides that the Company may complete an Optional Redemption of all of the then outstanding principal balance due under the Notes on or before December 31, 2023, notwithstanding Section 6(a) of the Notes, which permits the Company to effect an Optional Redemption only in the absence of an existing or imminent Event of Default, and subject to certain other conditions.
Item 3.02. Unregistered Sale of Securities.
Effective August 30, 2023, in accordance with the terms of that certain Letter Agreement by and between the Company and the Investors, the Company issued warrants to acquire an aggregate of 1,000,000 shares of Common Stock (the “Warrants”) to the Investors in satisfaction of the Letter Agreement in a transaction exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”), in reliance on Section 4(a)(2) thereof and Rule 506(b) of Regulation D thereunder. Each of the Investors previously represented that it was an “accredited investor”, as defined in Regulation D, and was acquiring the Warrants and Warrant Shares for investment only and not with a view towards, or for resale in connection with, the public sale of distribution thereof. Accordingly, the Warrants and Warrant Shares have not been registered under the Securities Act and any applicable state securities laws. Pursuant to the First Letter Agreement, the Company was obligated to provide the Investors the Warrants with an exercise price of $1.00 per share and a term of 5 years.
Mr. Zen
9 months ago
Q2 2023 revenues of $25 million, a 51.8% increase from Q2 2022, driven by higher demand and strong execution of company’s strategy
Reaffirms expectations for total revenue of $95-100 million in 2023, a 24-31% increase over 2022
iSun, Inc. (NASDAQ: ISUN) (the “Company,” or “iSun”), a leading solar energy and clean mobility infrastructure company with 50 years of experience accelerating the adoption of innovative electrical technologies, today announced final financial results for the second quarter of 2023 ended June 30, 2023.
Quarterly Highlights
Q2 2023 revenue of $25.0 million, up 51.8% from Q222, as continued commercial and industrial execution drives growth
YTD revenue of $42.4 million, up 34.2% over first half of 2022
Gross profit of $5.9 million, up 58.2% from Q222
Gross margin of 23.7%, up 90 basis points from 22.8% in 2022’s second quarter, as expected synergies taking hold
Awarded $8.0 million in new solar and EV infrastructure contracts in Q2 2023, with a total of $40.0 million in first half of 2023
Continuing successful execution of growth strategy, leveraging tailwinds
Management Commentary
“We are continuing to benefit from positive momentum, especially in our commercial and industrial segment, as we generated 51.8% higher revenue in the 2023 second quarter compared to last year. Our team is focused on executing our growth strategy, leveraging the positive tailwinds from climate legislation and higher customer interest in alternative energy solutions,” said Jeffrey Peck, Chief Executive Officer of iSun. “I am very pleased by our continued success in achieving new contract wins, as we added $8 million in the second quarter, for a total of $40 million in the first half of this year, a record pace for iSun. Our improved synergies as we scale, along with higher productivity, enabled us to increase our margins by 90 basis points in the second quarter to 23.7%. We have increased our labor utilization this year, as part of our ongoing efficiency efforts that included the consolidation of our commercial and industrial divisions, which offsets the continuing challenges we experience from supply chain constraints, even as they are lessening compared to last year. All these efforts provide us the confidence to reaffirm our annual revenue guidance for 2023, as we work diligently to implement and complete our many projects.”
Second Quarter and Year to Date Results
iSun reported second quarter 2023 revenue of $25.0 million, up 51.8% from $16.5 million in the same period in 2022. YTD revenue was $42.4 million, representing a $10.8 million or 34.2% increase over the same period in 2022. Revenue growth was driven primarily by the fulfillment of commercial and industrial projects across multiple states receiving notice to proceed as well as our residential backlog; total backlog was $161.8 million as of June 30, 2023. iSun also generated new future demand by adding $8 million in new business during the second quarter and a total of $40 million in the first half of 2023, primarily driven by strong demand for commercial and industrial services as well as for focused project origination and design services for partners on large national carport projects.
Divisional highlights as of June 30, 2023, include:
Residential division generated revenue of $9.3 and $16.2 million in the second quarter and YTD respectively. Customer orders of approximately $13.1 million are expected to be completed within three to five months.
The commercial and industrial division, which were consolidated as of January 1, 2023, generated revenue of $15.6 and $25.9 million in the second quarter and YTD respectively; the division has a contracted backlog of approximately $140.7 million expected to be completed within 10-18 months.
Utility and development division generated revenue of $0.1 and $0.3 million in the second quarter and YTD respectively. The Utility division has a contracted backlog of approximately $8.0 million and 1.6 GW of projects currently under development expected to achieve NTP in 2023 and early 2024.
Gross profit in the second quarter was $5.9 million, up 58.2% from $3.8 million in the second quarter of 2022. Gross margin for the quarter was 23.7%, up 90 basis points from 22.8% in the same period in 2022. YTD gross profit was $9.5 million, up 37% compared to $6.9 million during the same period in 2022. YTD gross margin was 22.4%, up 50 basis points compared to 21.9% during the same period in 2022. Margin is expected to continue to expand in the second half of 2023 consistent with scaling of operations and planned increase in residential implementations, as part of the strategy to expand gross margin each year as synergies among the company’s segments grow.
The operating loss in the second quarter was ($1.8) million, a 68.8% improvement compared to a loss of ($5.6) million in 2022’s second quarter, primarily reflecting the higher revenues and lower operating expenses as part of the company’s efficiency focus. YTD operating income was a loss of ($4.4) million, a 61.1% reduction compared to a loss of ($11.3) million during the same period in 2022. Non-cash depreciation and amortization expenses were $0.8 million in the second quarter of 2023, compared to $1.8 million in prior year period. YTD non-cash depreciation and amortization expenses were $1.5 million compared to $3.5 million in the same period in 2022.
iSun reported a net loss of ($2.5) million, or ($0.13) per share, in the second quarter of 2023, compared to a net loss of ($5.7) million, or ($0.40) per share, in the same period in 2022. YTD net loss was ($5.5) million or ($0.31) per share compared to a net loss of ($8.6) million or ($0.64) per share in the same period in 2022.
Adjusted EBITDA for the second quarter of 2023 was a loss of ($0.6) million or ($0.03) per share, compared to a loss of ($3.2) million or ($0.23) per share in 2022’s second quarter. YTD Adjusted EBITDA was a loss of ($1.8) million or ($0.10) per share compared to a loss of ($3.4) million or ($0.25) per share in the same period in 2022.
Outlook
iSun’s continuing success in winning new business, from solar projects to EV infrastructure and project origination and development services, along with its sizable and growing backlog, is expected to enable the company to produce total revenue of $95-100 million for the full year 2023, representing a 24-31% increase over total revenues of $76.5 million in 2022. With the positive results from its focus on efficiency so far this year, iSun also anticipates continued gross margin expansion and adjusted EBITDA profitability by the end of 2023.
Added Mr. Peck, “We are making excellent progress in tracking against the targets we set for iSun’s performance this year, as we execute on our strategy and fulfill our commitments to investors. We remain confident that our capabilities effectively address the needs of more customers and position us to accelerate our growth in the evolving alternative energy sector. Our success in winning significant contracts with existing and new customers is based upon our platform approach that delivers a suite of services to meet the needs of diverse customers. This year, we are also benefiting from the expertise of our team in executing efficiently on our backlog to address our customers’ needs. Now that our country’s energy policy has been established for the next 10 years through the IRA legislation passed last summer, we expect those macroeconomic factors to help us scale our operations significantly in the next few years, and thus enable us to generate steadily higher revenue and reach operating profitability.”
Second Quarter 2023 Conference Call Details
iSun will host a conference call today, Thursday, August 10, at 8:30 AM ET to review the Company’s financial results and discuss its operations and outlook. Participants can access the live conference call via telephone at 1-888-506-0062 (domestic) or 1-973-528-0011 (international), using conference ID 246871 or via webcast in the Investor Relations section of the iSun website at investors.isunenergy.com. An audio replay will be available through Thursday, August 24, 2023, and can be accessed by dialing 1-877-481-4010 (domestic) or 1-919-882-2331 (international), using conference code 48846. A webcast of the conference call will be available beginning approximately one hour after the call is completed at investors.isunenergy.com.
iSun, Inc.
Condensed Consolidated Balance Sheets as of
June 30, 2023 (Unaudited) and December 31, 2022
(In thousands, except number of shares)
Mr. Zen
9 months ago
iSun Inc. Provides Preliminary Second Quarter 2023 Revenue
July 31 2023 - 09:00AM
Business Wire
Continues to expect full year 2023 revenues of $95-100 million, a 24% to 31% increase over 2022
Plans to report final Q2 2023 results on August 10, 2023
iSun, Inc. (NASDAQ: ISUN) (the "Company," or "iSun"), a leading solar energy and clean mobility infrastructure company with 50-years of experience accelerating the adoption of innovative electrical technologies, today announced that preliminary revenue for the second quarter of 2023 ended June 30, 2023, was approximately a record $25 million, an increase of over 50% from the $16.5 million reported for the second quarter of 2022. The year-over-year increase reflects effective execution of the company’s strategy, with sustained strength in its commercial and industrial division, which has been performing robustly in 2023 responding to increased customer demand.
iSun continues to expect that total revenues for the full year 2023 will be $95-100 million, a 24%-31% increase over full year 2022 total revenues, reflecting the new business awards the company continues to secure across its business and its strong execution in working through its growing backlog.
HIGHLIGHTS:
Preliminary total revenue for second quarter of 2023 of approximately $25 million, a record and an increase of over 50% from the $16.5 million reported for the second quarter of 2022.
Reaffirms guidance of $95-100 million in revenue for the full year 2023, a 24%-31% increase over total revenues for full year 2022.
C&I division continues to outpace market growth, responding to higher customer demand and better execution on its growing backlog.
Company plans to announce final results for the second quarter and first half of 2023 on August 10, 2023.
“We are delighted by the momentum we are demonstrating this year, as we execute effectively on our growth strategy and respond to the increased demand for solar power solutions, especially in our consolidated commercial and industrial division. As we continue to secure new business awards across our markets, we’re confident that our sustained improved performance this year will enable us to achieve our full-year revenue and profitability targets,” said Jeffrey Peck, Chairman and Chief Executive Officer of iSun.
Final Second Quarter 2023 Results Timing
iSun plans to issue final second quarter and first half 2023 results before the market opens on Thursday, August 10, 2023.
A conference call to discuss the results will take place at 8:30 AM ET. To participate in the call, please dial 1-888-506-0062 (domestic) or 1-973-528-0011 (international), using conference ID 246871. The live webcast can be accessed through the Company’s Investor Relations website at investors.isunenergy.com.
A webcast replay of the call will be available at the same location beginning approximately one hour after the call’s completion. A telephonic replay will be available through August 24, 2023, and can be accessed by dialing 1-877-481-4010 (domestic) or 1-919-882-2331 (international), using conference code 48846.
About iSun Inc.
Since 1972, iSun has accelerated the adoption of proven innovations in electrification technology. iSun has been the trusted service provider to Fortune 500 companies for decades and has installed clean rooms, fiber optic cables, flight simulators, and over 600 megawatts of solar systems. The Company currently provides a comprehensive suite of solar services across residential, commercial, industrial & municipal, and utility scale projects and provides solar electric vehicle charging solutions for both grid-tied and battery backed solar EV charging systems. iSun believes that the transition to clean, renewable solar energy is the most important investment to make today and is focused on profitable growth opportunities. Please visit www.isunenergy.com for additional information.
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