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Zeo Energy Corporation(ZEO) - 2024 Q2 - Quarterly Results

Financial Performance - Total revenue for Q2 2024 was 14.7million,a5114.7 million, a 51% decrease from 30.1 million in Q2 2023, primarily due to higher interest rates affecting residential solar direct sales[8] - Gross profit for Q2 2024 decreased to 4.4million(29.84.4 million (29.8% of total revenue) from 5.6 million (18.7% of total revenue) in Q2 2023, driven by decreased sales but improved operational efficiencies[9] - Net loss for Q2 2024 was 1.3million(8.81.3 million (8.8% of total revenue), compared to net income of 0.8 million (2.7% of total revenue) in Q2 2023, largely due to stock compensation expenses[10] - Adjusted EBITDA for Q2 2024 was 0.7million(4.60.7 million (4.6% of total revenue), down from approximately 1.3 million (4.4% of total revenue) in Q2 2023, primarily due to decreased gross profit[11] - Total revenue for the first six months of 2024 was 34.6million,a2934.6 million, a 29% decrease from 48.8 million in the same period of 2023, attributed to higher interest rates[4] - Gross profit for the first six months of 2024 decreased to 6.0million(17.36.0 million (17.3% of total revenue) from 8.6 million (17.7% of total revenue) in the same period of 2023[5] - Net loss for the first six months of 2024 was 3.2million(9.23.2 million (9.2% of total revenue), compared to net income of 2.4 million (4.9% of total revenue) in the same period of 2023[6] - Net loss for 2024 was 3,181,873comparedtoanetincomeof3,181,873 compared to a net income of 2,400,187 in 2023[24] Strategic Initiatives - The company plans to reignite sales efforts and pursue strategic M&A opportunities as market conditions improve[3] - The recent launch into Ohio and Illinois markets has yielded encouraging initial results, with plans to build on this progress[2] - The appointment of Cannon Holbrook as Chief Financial Officer is expected to enhance the company's strategic capabilities[2] Assets and Liabilities - Total current assets increased to 17,895,800asofJune30,2024,from17,895,800 as of June 30, 2024, from 16,233,331 as of December 31, 2023, reflecting a growth of approximately 10.2%[21] - Total liabilities decreased to 12,205,927asofJune30,2024,downfrom12,205,927 as of June 30, 2024, down from 17,540,167 as of December 31, 2023, a decline of about 30.6%[21] - Cash and cash equivalents decreased to 5,342,120asofJune30,2024,from5,342,120 as of June 30, 2024, from 8,022,306 as of December 31, 2023, a drop of approximately 33.4%[21] - Accounts receivable increased to 7,207,854asofJune30,2024,comparedto7,207,854 as of June 30, 2024, compared to 2,905,205 as of December 31, 2023, an increase of about 147.5%[21] - The total stockholders' equity as of June 30, 2024, was (51,117,913),asignificantdecreasefrom(51,117,913), a significant decrease from 30,591,065 as of December 31, 2023[21] Cash Flow and Financing - Net cash used in operating activities was 12,338,008,asignificantdecreasefromcashprovidedof12,338,008, a significant decrease from cash provided of 1,849,251 in 2023[24] - Cash and cash equivalents at the end of the period were 5,342,120,downfrom5,342,120, down from 8,022,306 at the beginning of the period[24] - Proceeds from the issuance of convertible preferred stock amounted to 10,277,275,withnosuchproceedsreportedin2023[24]Totalpreferreddividendspaidwere10,277,275, with no such proceeds reported in 2023[24] - Total preferred dividends paid were 8,224,091, with no preferred dividends reported in the previous year[24] - Net cash provided by financing activities was 9,988,651,comparedto9,988,651, compared to 79,986 in the previous year[24] Expenses - Operating costs and expenses totaled 16,907,397forthesixmonthsendedJune30,2024,comparedto16,907,397 for the six months ended June 30, 2024, compared to 29,250,949 in 2023, a reduction of about 42.2%[23] - Depreciation and amortization expenses were 919,542,slightlydownfrom919,542, slightly down from 922,165 in 2023[24] - Cash paid for interest was 70,284,upfrom70,284, up from 37,851 in 2023[24] Non-Cash Transactions - Non-cash transactions included 3,269,039intransactioncostsand3,269,039 in transaction costs and 2,478,480 in Class A common stock issued to vendors[24] - The company recorded a change in the fair value of warrant liabilities amounting to $828,000 for the six months ended June 30, 2024[23]