Revenue and Operations - As of September 30, 2024, approximately 64% of the Company's annual revenues are generated from long-term contracts, while 36% come from sales to the general energy market[197]. - The Company expects first and fourth quarter solar revenue to be lower than in other quarters, with approximately 15% of annual revenues generated in Q1 and 11% in Q4[216]. - Revenue for continuing operations decreased by $1.2 million for the three months ended September 30, 2024, primarily due to the revenues generated in 2023 by the Italian parks which were sold in December 2023[234]. - Total revenue for the nine months ended September 30, 2024, was $9.891 million, a decrease of $16.235 million or 62% compared to $26.126 million in 2023[232]. - The United States generated $280,000 in revenue for the nine months ended September 30, 2024, representing a 237% increase from $83,000 in 2023[232]. - Revenue for continuing operations decreased by $2.7 million for the nine months ended September 30, 2024, primarily due to the sale of Italian parks, offset by a $0.2 million increase in US parks revenue[235]. - Revenue for discontinued operations decreased by $5.0 million for the three months ended September 30, 2024, with a 29% year-on-year drop in Romanian revenues due to lower Green Certificates sales and energy rates[236]. - Total revenue for discontinued operations decreased by $13.5 million for the nine months ended September 30, 2024, with a $9.7 million decrease attributed to the sale of parks in Poland and the Netherlands[237]. - Total revenue for the period decreased by $16.2 million, from $26.1 million in 2023 to $9.9 million in 2024, representing a 62% decline[238]. - Total for discontinued operations saw a revenue drop of 58%, from $23.1 million in 2023 to $9.6 million in 2024[238]. Financial Performance - The net loss from continuing operations for the three months ended September 30, 2024, was $2.7 million, compared to a net loss of $2.1 million in the same period of 2023[230]. - The company reported total operating expenses of $8.198 million for the nine months ended September 30, 2024, compared to $5.443 million in 2023, reflecting an increase of 50.8%[230]. - Selling, general and administrative expenses for continuing operations increased by $4.2 million for the nine months ended September 30, 2024, driven by higher compensation, audit, and legal costs[253]. - Net loss for continuing operations increased by $7.7 million for the nine months ended September 30, 2024, primarily due to a $2.7 million reduction in revenues and a $4.2 million increase in SG&A expenses[277]. - Net loss for discontinued operations decreased by $10.8 million for the nine months ended September 30, 2024, primarily due to a decrease in revenues of $13.5 million[278]. Assets and Liabilities - As of September 30, 2024, 84.4% of the Company's total liabilities were project-related debt[218]. - As of September 30, 2024, total debt was $33.534 million, an increase from $32.312 million as of December 31, 2023[281]. - Cash and cash equivalents from continuing operations decreased to $290 thousand as of September 30, 2024, down from $4.042 million as of December 31, 2023[283]. - The company is in active discussions with the lender regarding a loan in default, with principal outstanding of $11.2 million as of September 30, 2024[291]. Project Development and Strategy - The Company aims to own and operate over 3.0 giga-watts (GWs) of solar parks over the next five years[197]. - The Company intends to expand its transatlantic independent power producer (IPP) portfolio in locations that deliver higher yields and attractive returns on investments[208]. - The Company is committed to establishing a formal sustainability policy framework to ensure sustainable project development[208]. - The Company believes that the renewable energy generation segment will continue to offer growth opportunities driven by the reduction in the cost of solar technologies and government policies encouraging renewable power[222]. - The company sold its renewable energy parks in Italy, Poland, and the Netherlands, which impacted both revenue and production capacity[228]. Costs and Expenses - Cost of revenues for continuing operations decreased by $0.7 million for the nine months ended September 30, 2024, primarily driven by the decrease in costs for the sold Italian parks[243]. - Gross margins were 49% of sales for the three months ended September 30, 2024, compared to 77% for the same period in 2023, mainly due to the exclusion of Italian operating parks[244]. - Selling, general and administrative expenses for the total period increased by 60%, from $5.5 million in 2023 to $8.8 million in 2024[248]. - Development cost for continuing operations increased by $0.7 million for the three months ended September 30, 2024 compared to the same period in 2023, totaling $741,000[255]. - Development cost for the nine months ended September 30, 2024 increased by $0.4 million compared to the same period in 2023, totaling $748,000[256]. - Total other expenses for continuing operations increased by $2.3 million for the nine months ended September 30, 2024, compared to the same period in 2023[273]. Financing and Capital - The company has accessed capital markets several times in 2022 and 2023 but has not done so in 2024, which may affect its ability to acquire additional clean power generation assets[223]. - The company is working with multiple global banks and funds to secure necessary project financing to execute its transatlantic business plan[287]. - The company has a financing facility of up to €500 million to finance eligible project costs for solar PV plants across Europe, which is currently not drawn upon[290]. - The Company secured a working capital loan of $3.2 million in October 2023, which was later increased to $3.6 million with a 10% interest rate[297]. Miscellaneous - The company received a delist determination letter from Nasdaq, but regained compliance with the Bid Price Rule on October 28, 2024[285]. - The company sold Solis and its subsidiaries in Romania for €1, which accounted for 98% of group revenues for the nine months ended September 30, 2024[289]. - In July 2023, the Company acquired a 32 MWp solar PV project in Tennessee for $2.4 million, financed through a bank loan with a 24% APY[294]. - In July 2023, a Spanish subsidiary acquired project rights for a 32 MWp solar PV portfolio in Valencia for $1.9 million, financed through a €3.0 million ($3.3 million) bank facility[296].
Clean Earth Acquisitions (CLIN) - 2024 Q3 - Quarterly Report