Maxeon Solar Technologies Announces Fourth Quarter and Fiscal Year 2024 Results
--Fiscal year 2024 revenue of $509 million--
--Amid continued headwinds, committed to business transformation and fiscal discipline--
SINGAPORE, April 30, 2025 /PRNewswire/ -- Maxeon Solar Technologies, Ltd. (NASDAQ:MAXN) ("Maxeon" or "the Company"), a global leader in solar innovation and channels, today announced its financial results for its fourth quarter and fiscal year ended December 31, 2024.
"Maxeon's fourth quarter and fiscal 2024 results reflect the continued challenge posed by U.S. Customs & Border Protection (CBP)'s barring and exclusion of our Maxeon 3, Maxeon 6, and Performance 6 solar panels from U.S. import since July 2024", said George Guo, Maxeon's CEO. "Despite our thorough and transparent supply chain mapping and submission of extensive documentation demonstrating full compliance with the Uyghur Forced Labor Prevention Act (UFLPA), CBP's determination has not changed. CBP has neither cited any evidence nor alleged any non-compliance with the UFLPA on our part, yet it continues to unjustifiably block our products, causing material disruption to our business, our customers, and the U.S. renewable energy sector. We believe these actions are without merit and have commenced a legal action to contest CBP's decision at the U.S. Court of International Trade, demonstrating that our legacy supply chains are fully UFLPA-compliant."
Guo continued, "However, Maxeon is making progress in transforming our business to establish alternative manufacturing and supply chains to strengthen our versatility and resilience. We are restructuring to compete more effectively by focusing exclusively on the U.S. market, and in streamlining our operations, increasing efficiency, and reducing cost. Additionally, in light of new tariffs, we are identifying additional domestic component vendors and facilitating the transition to U.S.-focused operations along with expanding our network of U.S. partners. Providing residential, commercial and utility scale customers with the most efficient and reliable solar energy products is our top priority, and the strategic moves we are implementing today are designed to ensure our ability to achieve this strategic priority for the long term."
Dmitri Hu, Maxeon's CFO, added "Despite continued market uncertainties, Maxeon remains committed to fiscal discipline and strengthening our balance sheet. Earlier this year, we concluded divestment of the Company's assets in Philippines, as well as its businesses outside of the U.S. These divestments contributed liquidity to support our operations and drive our ongoing business transformation. We also restructured the interest payments on our outstanding debt obligations, substantially reducing the resulting cash burden. We continue to contemplate a few other financial restructuring initiatives, all targeted towards ensuring Maxeon remains resilient in the face of near-term headwinds."
Hu continued, "Considering ongoing restructuring and the volatile policy environment, we are unable to provide financial guidance for the foreseeable future. We will defer holding a conference call to discuss financial results until there is better visibility of the macroeconomic landscape and its impact on our transformation initiatives. Further, the Company will no longer report its earnings on a quarterly basis. As a foreign private issuer, the Company will report its audited financial statements through the filing of the Form 20-F with the Securities and Exchange Commission, and will report its financial results for the six months ended June 30th of each fiscal year, as required by Nasdaq listing rule 5250. Nonetheless, the Company will continue to comply with its continuing disclosure obligations should there be any developments (financial or otherwise) giving rise to such disclosure obligations."
Selected Q4 and Fiscal Year Unaudited Financial Summary
(In thousands, except shipments) Fiscal Q4 2024 Fiscal Q3 2024 Fiscal Q4 2023 Fiscal Year 2024 Fiscal Year 2023
Shipments, in MW 211 199 653 1,424 2,963
Revenue $48,813 $227,630 $228,775 $509,048 $1,123,110
Gross (loss) profit (47,656) 2,728 (34,461) (249,413) 78,115
GAAP Operating expenses 63,672 153,218 141,007 327,227 297,320
GAAP Net loss attributable to the stockholders (105,977) (393,944) (186,334) (614,300) (275,829)
Capital expenditures 11,656 11,129 11,656 52,149 67,452
Other Financial Data(1)
(In thousands) Fiscal Q4 2024 Fiscal Q3 2024 Fiscal Q4 2023 Fiscal Year 2024 Fiscal Year 2023
Non-GAAP Gross (loss) profit $(48,594) $(174,742) $(9,675) $(242,018) $103,943
Non-GAAP Operating expenses 41,164 42,861 36,654 162,724 153,128
Adjusted EBITDA (74,884) (225,705) (37,631) (376,149) 3,670
(1) The Company's use of Non-GAAP financial information, including a reconciliation to U.S. GAAP, is provided under "Use of Non-
GAAP Financial Measures" below.
For more information
Maxeon's fiscal year 2024 financial results and management commentary can be found on Form 20-F by accessing the Financials & Filings page of the Investor Relations section of Maxeon's website at: https://corp.maxeon.com/investor-relations. The Form 20-F and Company's other filings are also available online from the Securities and Exchange Commission at www.sec.gov.
About Maxeon Solar Technologies
Maxeon Solar Technologies (NASDAQ: MAXN) is Powering Positive Change(TM). Headquartered in Singapore, Maxeon leverages 40 years of solar energy leadership and over 2,000 granted patents to design innovative and sustainably made solar panels and energy solutions for residential, commercial, and power plant customers. For more information about how Maxeon is Powering Positive Change(TM) visit us at www.maxeon.com, and on LinkedIn.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, but not limited to, statements regarding: (a) our ability to (i) meet short-term and long-term material cash requirements, (ii) service our outstanding debts and make payments as they come due and (iii) continue as a going concern; (b) the success of our ongoing restructuring initiatives, including our attempts to refinance or equitize our debts, and our ability to execute on our plans and strategy; (c) our expectations regarding product pricing trends, demand and growth projections, including our efforts to enforce our intellectual property rights against our competitors; (d) disruptions to our operations and supply chain resulting from, among other things, government regulatory or enforcement actions, such as the denial of entry into the U.S. of our products by the U.S. Customs and Border Protection ("CBP") for an unforeseeable amount of time, epidemics, natural disasters or military or trade conflicts, including the duration, scope and impact on the demand for our products, market disruptions from the war in Ukraine, the Israel-Hamas-Iran conflict and the escalating trade war and rising geopolitical tensions between the United States and China; (e) anticipated product launch timing and our expectations regarding ramp, customer acceptance and demand, upsell and expansion opportunities; (f) our expectations and plans for short- and long-term strategy, including our new focus on the U.S. market and investment, market expansion, product and technology focus, implementation of restructuring plans and projected growth and profitability; (g) our technology outlook, including our collaboration with TZE to develop our Maxeon 8 technology and production timelines for the Performance line solar panels, expected cost reductions, and future performance; (h) our strategic goals and plans, including statements regarding restructuring of our business portfolio and divesting our "rest-of-the-world" distributed generation business and our business in the Philippines, the closure and anticipated closure of certain of the Company's facilities, the Company's anticipated manufacturing facility in the U.S., our transformation initiatives and plans regarding supply chain adaptation, efforts to develop U.S. vendors and supply chain, improved costs and efficiencies, partnership discussions with respect to the Company's next-generation technology, and our relationship with our existing customers, suppliers and partners, and our ability to achieve and maintain them; (i) our expectations regarding our future performance and revenues resulting from contracted orders, bookings, backlog, and pipelines in our sales channels and feedback from our partners; (j) our majority ownership by a controlling shareholder based in the PRC and the U.S. presidential administration's aggressive stance toward China, and (k)our projected effective tax rate and changes to the valuation allowance related to our deferred tax assets.
The forward-looking statements can be also identified by terminology such as "may," "might," "could," "will," "aims," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements.
These forward-looking statements are based on our current assumptions, expectations and beliefs and involve substantial risks and uncertainties that may cause results, performance or achievement to materially differ from those expressed or implied by these forward-looking statements. These statements are not guarantees of future performance and are subject to a number of risks. The reader should not place undue reliance on these forward-looking statements, as there can be no assurances that the plans, initiatives or expectations upon which they are based will occur. Factors that could cause or contribute to such differences include, but are not limited to: (1) challenges in executing transactions key to our strategic plans, and other restructuring plans, as well as challenges in addressing regulatory and other obstacles that may arise; (2) our liquidity, substantial indebtedness, terms and conditions upon which our indebtedness is incurred, and ability to obtain additional financing for our projects, customers and operations and to refinance and/or equitize our debts; (3) an adverse final determination of the CBP investigation related to CBP's examination of Maxeon's compliance with the Uyghur Forced Labor Prevention Act; (4) our ability to manage supply chain shortages and/or excess inventory and cost increases and operating expenses; (5) potential disruptions to our operations and supply chain that may result from difficulties in hiring or retaining key personnel, epidemics, natural disasters, trade and military conflicts, including impacts of the war in Ukraine, conflicts in the Middle East and the escalating trade war between the U.S. and China; (6) our ability to manage our key customers and suppliers and develop new customers and suppliers in the United States; (7) the success of our ongoing research and development efforts and our ability to commercialize new products and services, including products and services developed through strategic partnerships, such as our collaboration with affiliates of TZE to develop our Maxeon 8 technology; (8) competition in the solar and general energy industry and downward pressure on selling prices and wholesale energy pricing, including impacts of inflation, economic recession and foreign exchange rates upon customer demand; (9) changes in regulation and public policy, including the imposition and applicability of tariffs and retaliatory measures thereto; (10) our ability to comply with various tax holiday requirements as well as regulatory changes or findings affecting the availability of economic incentives promoting use of solar energy and availability of tax incentives or imposition of tax duties; (11) fluctuations in our operating results; (12) appropriate sizing, or delays in developing our planned U.S. based manufacturing capacity and responding to development, manufacturing and logistical difficulties that could arise; (13) unanticipated impact to customer demand and sales schedules due, among other factors, global trade and military conflicts, economic recession and environmental disasters; (14) reaction by securities or industry analysts to our annual and/or quarterly guidance, in combination with our results of operations or other factors, and/ or third party reports or publications, whether accurate or not, which have caused and may continue to cause, such securities or industry analysts to cease publishing research or reports about us, or adversely change their recommendations regarding our ordinary shares, which may negatively impact the market price of our ordinary shares and volume of our stock trading; (15) the removal of our Company's ordinary shares from prominent stock indices including the Russell 2000 and Russell 3000; and (16) unpredictable outcomes resulting from our litigation activities and other disputes. Forward-looking and other statements in this report may also address our corporate sustainability or responsibility progress, plans, and goals (including environmental matters), and the inclusion of such statements is not an indication that these contents are necessarily material to investors or required to be disclosed in the Company's filings with the SEC. In addition, historical, current, and forward-looking sustainability-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future.
Some of these factors and other risks that affect our business are included and discussed in more detail in filings we make with the Securities and Exchange Commission ("SEC") from time to time, including our most recent report on Form 20-F, particularly under the heading "Item 3D. Risk Factors," "Item 4. Information on the Company," and "Item 5. Operating and Financial Review and Prospects." Copies of these filings are available online from the SEC at www.sec.gov, or on the SEC Filings section of our Investor Relations website at https://corp.maxeon.com/investor-relations. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the Form 20-F as anticipated, believed, estimated or expected. We provide the information in this press release as of the date of its filing. We do not intend, and do not assume any obligation, to update any information or forward-looking statements set out in this press release as a result of new information, future events or otherwise, unless as otherwise required by law.
Presentation of Non-GAAP Financial Measures
We present certain non-GAAP measures such as non-GAAP gross profit (loss), non-GAAP operating expenses and earnings before interest, taxes, depreciation and amortization ("EBITDA") adjusted for stock-based compensation, provision for expected credit losses, restructuring charges and fees, remeasurement loss on prepaid forward, physical delivery forward and warrants, gain on extinguishment of debt, and equity in losses of unconsolidated investees ("Adjusted EBITDA") to supplement our consolidated financial results presented in accordance with GAAP. Non-GAAP gross (loss) profit is defined as gross (loss) profit excluding stock-based compensation and restructuring charges and fees. Non-GAAP operating expenses is defined as operating expenses excluding stock-based compensation, provision for expected credit losses and restructuring charges and fees.
We believe that non-GAAP gross (loss) profit, non-GAAP operating expenses and Adjusted EBITDA provide greater transparency into management's view and assessment of the Company's ongoing operating performance by removing items management believes are not representative of our continuing operations and may distort our longer-term operating trends. We believe these measures are useful to help enhance the comparability of our results of operations across different reporting periods on a consistent basis and with our competitors, distinct from items that are infrequent or not associated with the Company's core operations as presented above. We also use these non-GAAP measures internally to assess our business, financial performance and current and historical results, as well as for strategic decision-making and forecasting future results. Given our use of non-GAAP measures, we believe that these measures may be important to investors in understanding our operating results as seen through the eyes of management. These non-GAAP measures are neither prepared in accordance with GAAP nor are they intended to be a replacement for GAAP financial data, should be reviewed together with GAAP measures and may be different from non-GAAP measures used by other companies.
As presented in the "Reconciliation of Non-GAAP Financial Measures" section, each of the non-GAAP financial measures excludes one or more of the following items in arriving to the non-GAAP measures:
-- Stock-based compensation expense. Stock-based compensation relates
primarily to equity incentive awards. Stock-based compensation is a
non-cash expense that is dependent on market forces that are difficult
to predict and is excluded from non-GAAP gross profit (loss), non-GAAP
operating expense and Adjusted EBITDA. Management believes that this
adjustment for stock-based compensation expense provides investors with
a basis to measure our core performance, including the ability to
compare our performance with the performance of other companies, without
the period-to-period variability created by stock-based compensation.
-- Provision for expected credit losses. This relates to the expected
credit loss in relation to the financial assets under the Separation and
Distribution Agreement dated November 8, 2019 (the "SDA") entered into
with SunPower Corporation ("SunPower") in connection with the Company's
spin-off from SunPower. Such loss is excluded from non-GAAP operating
expense and Adjusted EBITDA as this relates to SunPower's business,
which Maxeon did not and will not have economic benefits to, as the
Company's involvement is solely through SunPower's now-terminated
indemnification obligations set forth in the SDA. We have recorded the
expected credit loss as a result of SunPower's Chapter 11 bankruptcy
filing due to our expectation that SunPower will not meet its prior
indemnification obligations to us under the SDA. As such, management
believes that this is not part of core operating activity and it is
appropriate to exclude the provision for expected credit losses from our
non-GAAP financial measures as it is not reflective of ongoing operating
results nor do these charges contribute to a meaningful evaluation of
our past operating performance.
-- Restructuring charges and fees. We incur restructuring charges,
inventory impairment and other inventory related costs associated with
the re-engineering of our IBC capacity, and fees related to
reorganization plans and business acquisition aimed towards realigning
resources consistent with our global strategy and improving its overall
operating efficiency and cost structure. Restructuring charges and fees
are excluded from non-GAAP gross profit (loss), non-GAAP operating
expenses and Adjusted EBITDA because they are not considered core
operating activities. Although we have engaged in restructuring
activities and initiatives, past activities have been discrete events
based on unique sets of business objectives. As such, management
believes that it is appropriate to exclude restructuring charges and
fees from our non-GAAP financial measures as they are not reflective of
ongoing operating results nor do these charges contribute to a
meaningful evaluation of our past operating performance.
-- Remeasurement loss on prepaid forward and physical delivery forward.
This relates to the mark-to-market fair value remeasurement of privately
negotiated prepaid forward and physical delivery transactions. The
transactions were entered into in connection with the issuance on July
17, 2020 of the 6.50% Green Convertible Senior Notes due 2025 for an
aggregate principal amount of $200.0 million. The prepaid forward is
remeasured to fair value at the end of each reporting period, with
changes in fair value booked in earnings. The fair value of the prepaid
forward is primarily affected by the Company's share price. The physical
delivery forward was remeasured to fair value at the end of the Note
Valuation Period on September 29, 2020, and was reclassified to equity
after remeasurement, and will not be subsequently remeasured. The fair
value of the physical delivery forward was primarily affected by the
Company's share price. The remeasurement loss (gain) on prepaid forward
and physical delivery forward is excluded from Adjusted EBITDA because
it is not considered core operating activities. As such, management
believes that it is appropriate to exclude the mark-to-market
adjustments from our Adjusted EBITDA as it is not reflective of ongoing
operating results nor do the loss contribute to a meaningful evaluation
of our past operating performance.
-- Remeasurement loss on warrants. This relates to the mark-to-market fair
value remeasurement of exchange warrants and investor warrants. The
transactions were entered into in connection with the exchange of 99.25%
of the 2025 Notes with aggregate notional amount of $200 million and the
9.00% Convertible First Lien Senior Secured Notes due 2029 of $97.5
million, both entered on June 20, 2024. The investor warrants were
remeasured to fair value prior to them being exercised and were
reclassified to equity, and will not be subsequently remeasured. The
exchange warrants were remeasured to fair value on September 12, 2024,
and were reclassified to equity after on such date, and will not be
subsequently remeasured. The fair value of the warrants was primarily
affected by the Company's share price. The remeasurement loss on
warrants is excluded from Adjusted EBITDA because it is not considered a
core operating activity. As such, management believes that it is
appropriate to exclude the mark-to-market adjustments from our Adjusted
EBITDA as it is not reflective of ongoing operating results nor do the
loss contribute to a meaningful evaluation of our past operating
performance.
-- Equity in losses of unconsolidated investees and related gain. This
relates to the loss on our former unconsolidated equity investment in
HSPV and gains on such investment on divestment. This is excluded from
our Adjusted EBITDA financial measure as it is non-cash in nature and
not reflective of our core operational performance. As such, management
believes that it is appropriate to exclude such charges as they do not
contribute to a meaningful evaluation of our performance.
-- Loss (gain) on extinguishment of debt. This relates to the gain that
arose from the substantial modification in June 2024 of our Green
Convertible Senior Notes due 2025 (the "Green Convertible Notes") and
First Lien Senior Secured Convertible Notes due 2027, offset by the loss
as a result of early redemption by the noteholders of the remaining
Green Convertible Notes who has not opted for the exchange. Gain on debt
extinguishment is excluded from Adjusted EBITDA because it is not
considered part of core operating activities. Such activities are
discrete events based on unique sets of business objectives. As such,
management believes that it is appropriate to exclude the gain on
extinguishment of debt from our non-GAAP financial measures as it is not
reflective of ongoing operating results nor do these charges contribute
to a meaningful evaluation of our past operating performance.
Reconciliation of Non-GAAP Financial Measures
Three Months Ended Fiscal Year Ended
(In thousands) December 31, September 29, December 31, December 31, December 31,
2024 2024 2023 2024 2023
Gross (loss) profit $(47,656) $(179,101) $(34,461) $(249,413) $78,115
Stock-based compensation 16 1,596 (53) 2,474 989
Restructuring charges and fees (954) 2,763 24,839 4,921 24,839
Non-GAAP Gross (loss) profit (48,594) (174,742) (9,675) (242,018) 103,943
GAAP Operating expenses 63,672 153,218 141,007 327,227 297,320
Stock-based compensation (10,681) (4,293) (1,235) (26,226) (17,338)
(Provision for) reversal of expected credit losses (764) 165 (12,061)
Restructuring charges and fees (11,063) (106,229) (103,118) (126,216) (126,854)
Non-GAAP Operating expenses 41,164 42,861 36,654 162,724 153,128
GAAP Net loss attributable to the stockholders (105,977) (393,944) (186,334) (614,300) (275,829)
Interest expense, net 8,690 11,784 7,416 43,279 33,051
(Benefit from) provision for income taxes (5,388) 18,925 (9,949) 17,952 (626)
Depreciation 5,554 15,886 12,261 42,108 55,685
Amortization 50 169 44 658 195
EBITDA (97,071) (347,180) (176,562) (510,303) (187,524)
Stock-based compensation 10,697 5,889 1,182 28,700 $18,327
Provision for (reversal of) expected credit losses 764 (165) 12,061
Restructuring charges and fees 10,109 108,992 127,957 131,137 $151,693
Remeasurement loss on prepaid forward 35 1,793 9,792 16,117 $18,363
Remeasurement loss on warrants 4,966 4,966
$ -
Equity in losses of unconsolidated investees and related gain (24,083) $2,811
Loss (gain) on extinguishment of debt 582 (34,744)
$ -
Adjusted EBITDA (74,884) (225,705) (37,631) (376,149) $3,670
©2024 Maxeon Solar Technologies, Ltd. All rights reserved. MAXEON is a registered trademark of Maxeon Solar Technologies, Ltd. Visit https://corp.maxeon.com/trademarks for more information.
MAXEON SOLAR TECHNOLOGIES, LTD
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(In thousands, except for shares data)
As of
December 31, 2024 December 31, 2023
Assets
Current assets:
Cash and cash equivalents $28,895 $190,169
Restricted short-term marketable securities - 1,403
Accounts receivable, net 4,269 62,687
Inventories 40,220 308,948
Prepaid expenses and other current assets 20,363 55,346
Assets held for sale 172,269 466
Total current assets $266,016 $619,019
Property, plant and equipment, net 72,858 280,025
Operating lease right of use assets 27,951 22,824
Intangible assets, net 523 3,352
Goodwill - 7,879
Other long-term assets 8,924 68,910
Total assets $376,272 $1,002,009
Liabilities and Equity
Current liabilities:
Accounts payable $62,544 $153,020
Accrued liabilities 86,724 113,456
Contract liabilities, current portion 74,312 134,171
Short-term debt 462 25,432
Operating lease liabilities, current portion 9,098 5,857
Liabilities classified as held for sale 105,368
Total current liabilities $338,508 $431,936
Long-term debt 732 1,203
Contract liabilities, net of current portion 3,333 113,564
Operating lease liabilities, net of current portion 27,434 19,611
Convertible debt 273,766 385,558
Deferred tax liabilities 5,313 7,001
Other long-term liabilities 15,551 38,494
Total liabilities $664,637 $997,367
Commitments and contingencies
Equity:
Ordinary shares, no par value (16,711,109 and 539,591 issued and outstanding as of December 31, 2024 and December 31, 2023, respectively)
$ -
$ -
Additional paid-in capital 1,137,042 811,361
Accumulated deficit (1,410,392) (796,092)
Accumulated other comprehensive loss (20,492) (16,378)
Equity attributable to the Company (293,842) (1,109)
Noncontrolling interests 5,477 5,751
Total equity (288,365) 4,642
Total liabilities and equity $376,272 $1,002,009
MAXEON SOLAR TECHNOLOGIES, LTD
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(In thousands, except per share data)
Three Months Ended Fiscal Year Ended
December 31, December 31, December 31, December 31,
2024 2023 2024 2023
Revenue $48,813 $228,775 $509,048 $1,123,110
Cost of revenue 96,469 263,236 758,461 1,044,995
Gross (loss) profit (47,656) (34,461) (249,413) 78,115
Operating expenses:
Research and development 9,266 9,988 37,550 45,703
Sales, general and administrative 47,194 28,876 173,523 126,167
Restructuring charges 7,212 102,143 116,154 125,450
Total operating expenses 63,672 141,007 327,227 297,320
Operating loss (111,328) (175,468) (576,640) (219,205)
Other expense, net
Interest expense (9,063) (10,101) (45,366) (42,438)
Interest income 373 2,686 2,087 9,387
(Loss) gain on extinguishment of debt (582) 34,744
Other, net 9,382 (13,359) (11,447) (21,270)
Other expense, net 110 (20,774) (19,982) (54,321)
Loss before income taxes and equity in losses of unconsolidated investees (111,218) (196,242) (596,622) (273,526)
Benefit from (provision for) income taxes 5,388 9,949 (17,952) 626
Equity in losses of unconsolidated investees - (2,811)
Net loss (105,830) (186,293) (614,574) (275,711)
Net (income) loss attributable to noncontrolling interests (147) (41) 274 (118)
Net loss attributable to the stockholders $(105,977) $(186,334) $(614,300) $(275,829)
Net loss per share attributable to stockholders:
Basic and diluted $(6.60) $(372.09) $(96.00) $(594.62)
Weighted average shares used to compute net loss per share:
Basic and diluted 16,050 501 6,399 464
MAXEON SOLAR TECHNOLOGIES, LTD
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(In thousands)
Fiscal Year Ended
December 31, 2024 December 31, 2023
Cash flows from operating activities
Net loss $(614,574) $(275,711)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization 43,464 55,880
Stock-based compensation 28,700 18,327
Non-cash interest expense 12,821 9,063
Gain from disposal of asset held for sale - (2,006)
Equity in losses of unconsolidated investees - 2,811
Gain on disposal of equity in unconsolidated investees (24,083)
Loss on retirement of property, plant and equipment 261 196
Loss on impairment of operating lease right of use assets 7,433 708
Loss on impairment of property, plant and equipment 156,598 76,332
Loss on impairment of intangible assets 2,167
Loss on impairment of goodwill 7,879
Write-off of other assets 21,401
Gain on debt extinguishment (34,744)
Deferred income taxes (355) 2,436
Remeasurement loss on prepaid forward 16,117 18,363
Remeasurement loss on warrants 4,966
Provision for expected credit losses 12,200
Provision for excess or obsolete inventories 158,726 10,804
Other, net 1,157 135
Changes in operating assets and liabilities
Accounts receivable 42,558 (8,331)
Inventories 50,056 (43,473)
Prepaid expenses and other assets (919) 29,741
Operating lease right-of-use assets 5,728 5,241
Advances to suppliers - 2,137
Accounts payable and other accrued liabilities 7,600 (97,660)
Contract liabilities (168,082) (55,109)
Operating lease liabilities (7,231) (4,179)
Net cash used in operating activities (270,156) (254,295)
Cash flows from investing activities
Purchases of property, plant and equipment (52,149) (67,452)
Proceeds from disposal of restricted short-term marketable securities - 971
Purchase of restricted short-term marketable securities - (1,408)
Proceeds from maturity of short-term securities 1,329 136,000
Purchase of short-term securities - (60,000)
Proceeds from disposal of asset held for sale 462 5,961
Proceeds from disposal of property, plant and equipment 1,125
Purchases of intangibles (10) (146)
Proceeds from disposal of equity in unconsolidated investees 24,000
Net cash (used in) provided by investing activities (25,243) 13,926
Cash flows from financing activities
Proceeds from debt 51,249 195,639
Repayment of debt (74,572) (220,598)
Repayment of convertible debt (1,500)
Net proceeds from issuance of convertible debt 70,125
Net proceeds from issuance of ordinary shares 96,446 193,491
Distribution to noncontrolling interest -
Repayment of finance lease obligations and other debt (515) (581)
Net cash provided by financing activities 141,233 167,951
Effect of exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents (94) (32)
Net decrease in cash, cash equivalents, restricted cash and restricted cash equivalents (154,260) (72,450)
Cash and restricted cash classified to asset held for sale (10,243)
Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning of period 195,511 267,961
Cash, cash equivalents, restricted cash and restricted cash equivalents, end of period $31,008 $195,511
Non-cash transactions
Property, plant and equipment purchases funded by liabilities $4,509 $5,491
Interest paid in ordinary shares 6,969
Interest paid by issuance of convertible notes 9,158
Right-of-use assets obtained in exchange for lease obligations 20,107 10,929
Cost for acquisition of assets paid in shares - 10,989
The following table reconciles our cash and cash equivalents and restricted cash and restricted cash equivalents reported on our Condensed Consolidated Balance Sheets and the cash, cash equivalents, restricted cash and restricted cash equivalents reported on our Condensed Consolidated Statements of Cash Flows as of December 31, 2024 and December 31, 2023:
(In thousands) December 31, 2024 December 31, 2023
Cash and cash equivalents $28,895 $190,169
Restricted cash and restricted cash equivalents, current portion, included in prepaid expenses and other current assets 2,018 5,242
Restricted cash and restricted cash equivalents, net of current portion, included in other long-term assets 95 100
Total cash, cash equivalents, restricted cash and restricted cash equivalents shown in Consolidated Statements of Cash Flows $31,008 $195,511
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SOURCE Maxeon Solar Technologies, Ltd.
