Q4 2021 Sunworks Inc Earnings Call
Good day, ladies and gentlemen, and welcome to the Sunworks fourth quarter and full year 2021 earnings call and webcast.
Good day, ladies and gentlemen, and welcome to the Sun works fourth quarter and full year 2021 earnings call and webcast.
At this time, all participants have been placed on a listen-only mode, and we will open the floor for your questions and comments after the presentation.
At this time, all participants have been placed on a listen only mode and we will open the floor for your questions and comments after the presentation.
It is now my pleasure to turn the floor over to your host, Jeff Standless.
It is now my pleasure to turn the floor over to your host Jeff establish Sir the floor is yours.
Jeff Standless: Thank you, operator. Good afternoon, everyone, and thank you all for joining Sunworks fourth quarter and full year 2021 earnings conference call. Participating on the call today are Galen Morris, Chief Executive Officer, and Jason Bonfit, Sunworks Chief Financial Officer.
Thank you operator, good afternoon, everyone and thank you all for joining some works fourth quarter and full year 2021 earnings conference call participating on the call today are Galen Morris Chief Executive Officer, adjacent bond fit <unk>, Chief Financial Officer, I would like to remind everyone that during this call managements remarks may contain forward looking statements which are subject.
Jeff Standless: Before we begin, I would like to remind everyone that during this call, management's remarks may contain forward-looking statements, which are subject to risks and uncertainties, and management may make additional forward-looking statements during the question-and-answer session. Therefore, the company claims the protection of the safe harbor for forward-looking statements that is contained in the Private Securities Litigation Reform Act of 1995.
Two risks and uncertainties and management may make additional forward looking statements. During the question and answer session. Therefore, the company claims the protection of the Safe Harbor for forward looking statements that is contained in the private Securities Litigation Reform Act of 1995.
Jeff Standless: Actual results could differ materially from those contemplated by the forward-looking statements because of certain factors not limited to general economic and business conditions.
Actual results could differ materially from those contemplated by the forward looking statements because of certain factors not limited to general economic and business conditions competitive factors factors changes in business strategy or development plans, the ability to attract and retain qualified personnel and changes in legal.
Jeff Standless: competitive factors, changes in business strategy or development plans, the ability to attract and retain qualified personnel, and changes in legal and regulatory requirements.
And regulatory requirements. In addition, any projections as to the Companys future performance represent managements estimates as of today March 11 2022.
Jeff Standless: In addition, any projections as to the company's future performance represent management's estimates as of today, March 11, 2022.
Jeff Standless: Sunworks assumes no obligations to update these projections in the future as market and business conditions may change.
<unk> assumes no obligations to update these projections in the future as market and business conditions May change I would now like to turn the call over to <unk> CEO Gail at Morris.
Jeff Standless: I would now like to turn the call over to Sunworks CEO , Galen Moore.
Galen Moore: Thank you. Good afternoon everyone and thank you for joining our call. This was a very productive year for SunWorks as we have successfully built a scalable platform for profitable growth in the rapidly growing solar industry.
Thank you good afternoon, everyone and thank you for joining our call. This was a very productive year for some works as we have successfully built a scalable platform for profitable growth in the rapidly growing solar industry.
Galen Moore: In April , we acquired Solstice, a residential EPC organization with significant market reach, excellent technology solutions, and sales-oriented competencies.
In April we acquired Celsius, a residential EPC organization with significant market reach excellent technology solutions and sales oriented competencies. This acquisition transform some works from being a small player in both residential and C&I to a scalable platform in both end markets. This residential biz.
Galen Moore: This acquisition transformed some work from being a small player in both residential and C&I to a scalable platform in both end markets.
Galen Moore: This residential business continues to deliver excellent results, and we are moving to continue expansion of our geographic presence, which, according to many industry forecasts should be a very strong market for the foreseeable future.
<unk> continues to deliver excellent results and we are moving to continue expansion of our geographic presence, which according to many industry forecast should be a very strong market for the foreseeable future.
Galen Moore: We now have a robust organization of proven professionals with deep and relevant experience at larger companies. Over the past year, we have added key leadership to our commercial and industrial business and have established enhanced processes to ensure quality and timely installations, helping us expand our gross margins and to scale our business in the future.
We now have a robust organization, a proven professionals with deep and relevant experience at larger companies over the past year, we have added key leadership to our commercial and industrial business.
And have established enhanced processes to ensure quality and timely installations, helping us expand our gross margins and to scale our business in the future.
Galen Moore: Our focus as we turn to 2022 is on growing this effective platform, and we are pursuing both organic and inorganic growth opportunities.
Our focus as we turn to 2022 is on growing this effective platform and we are pursuing both organic and inorganic growth opportunities. The successful <unk> acquisition gave us a platform for growth with differentiation and a track record of success scale matters in this industry scale enables greater access to panels battery.
Galen Moore: The successful Solstice acquisition gave us a platform for growth with differentiation and a track record of success.
Galen Moore: Scale matters in this industry. Scale enables greater access to panels, batteries, and other components, and sometimes to more favorable prices.
These and other components and sometimes to more favorable pricing.
Galen Moore: Scale enables us to more effectively leverage marketing and advertising investments, both in our residential and commercial business units.
Our scale enables us to more effectively leverage marketing and advertising investments both in our residential and commercial business units, we need to scale to better cover our public company costs and as a public company, we have greater access to capital and more pathways to finance acquisitions, finally, with more than $48 million and net operating loss carryforward.
Galen Moore: We need to scale to better cover our public company costs, and as a public company, we have greater access to capital and more pathways to finance acquisition.
Galen Moore: Finally, with more than 48 million in net operating loss carry forwards, acquiring and integrating businesses represents a path to extracting greater value as we can utilize these NOLs to reduce future federal tax.
Acquiring and integrating businesses represents a path to extracting greater value as we can utilize these nols to reduce future federal taxes.
Galen Moore: Over the past year, valuations for solar companies have declined and the supply chain issues have created a more buyer-friendly acquisition environment. We are evaluating potential acquisition targets, primarily small to medium-sized companies, both on acquisitions that will expand our scale and contribute to our growth. Geographically, we are now offering solar and storage solutions in 19 markets in 15 states.
Over the past year evaluations for solar companies have declined and the supply chain issues have created a more buyer friendly acquisition environment. We are evaluating potential acquisition targets, primarily small to medium sized companies bolt on acquisitions that will expand our scale and contribute to our growth geographically we are now offering sold.
In storage solutions in 19 markets in 15 states during the past year, we significantly significantly expanded our residential presence in Texas, we continue to assess additional markets to enter into over the next several quarters geographic growth as a key initiative for some works, especially in the residential market because of the solstice model enables us.
Galen Moore: During the past year, we significantly expanded our residential presence in Texas. We continue to assess additional markets to enter into over the next several quarters.
Galen Moore: Geographic growth is a key initiative for some works, especially in the residential market because the Solstice model enables us to quickly establish a presence in a new geography with a limited initial cost.
To quickly establish a presence in a new geography with a limited initial cost.
Staying with our residential business. Our goal is to create a multi channel sales organization more effectively leveraging our capabilities, notably our fulfillment technology platform. We continue to actively recruit for retail new sales partners throughout the United States to augment our other third party sales partners.
Galen Moore: Our goal is to create a multi-channel sales organization, more effectively leveraging our capabilities, notably our fulfillment technology platform.
Galen Moore: We continue to actively recruit for new sales partners throughout the United States to augment our other third-party sales partners.
Galen Moore: As a part of this, Solstice recently launched a select program for new and existing sales channel partners, making us even more competitive on base install rates by streamlining what is included in the base rate to our most popular offerings and shifting more specialized selections to a list of add-ons.
As a part of this Celsius recently launched our select program for new and existing sales channel partners, making us even more competitive on base install rates by streamlining what is included in our base rate to our most popular offerings and shifting more specialized selections to list of add ons.
Galen Moore: This will help us increase the number and locations of our sales channel partners, rapidly expanding our channel revenue stream.
This will help us increase the number and locations of our sales channel partners rapidly expanding our channel revenue streams.
Galen Moore: Not only will we expand via sales channel partners, we also have rapidly grown and will continue to grow our direct sales channel.
Not only will we expand via sales channel partners. We also have rapidly grown and will continue to grow our direct sales channel.
Galen Moore: Post-acquisition, we have added 250 direct sales people, and in six months, our direct sales team is now our second largest source of deal origination.
<unk> acquisition, we have added 250 direct salespeople and in six months, our direct sales team is now our second largest source of deal origination.
Galen Moore: This team will further penetrate existing markets and allow us to grow in markets where we do not participate today. And while we are in the early innings of this, of executing the strategy, I am encouraged by the number of new originations being generated through this channel.
This team will further penetrate existing markets and allow us to grow in markets, where we do not participate today and while we are in the early innings of executing the strategy I am encouraged by the number of new originations being generated through this channel.
Turning to our commercial and public works businesses margin improvement and growth remains our key priorities.
Galen Moore: Turning to our commercial and public works businesses, margin improvement and growth remains our key priority.
Galen Moore: This business can be seasonal and winter weather in the fourth quarter can and did impact installation timeframes, impacting both revenue and margin.
This business can be seasonal and winter weather in the fourth quarter, Ken and did impact of installation timeframes impacting both revenue and margin, but overall, we have made some significant progress in addressing lower project margins that presented a significant challenge for some works in the past.
Galen Moore: But overall, we have made significant progress in addressing lower project margins that presented a significant challenge for some works in the past.
Galen Moore: Today we are much better at accurately estimating and quoting and have improved our deployment execution to avoid costly project overruns.
Today, we are much better it accurately estimated.
Putting and have improved our deployment execution to avoid costly project overruns. So.
Galen Moore: SomeWorks is now a margin-focused organization with compensation and evaluations based on margin, not just revenue.
Works is now a margin focused organization with compensation and evaluations based on margin not just revenue.
Galen Moore: Looking to the future, margins on our quoted work now often exceed 20%, but I caution that until these projects are won, convert to backlog, and ultimately to revenue, this is speculative. It is, however, indicative of
Looking to the future margins on our quoted work now often exceed 20%, but I caution that until these projects were won convert to backlog and ultimately to revenue. This is speculative. It is however, indicative of the progress we have made.
Galen Moore: Over the past year, we've added industry veterans to this business in key operations positions and within sales. These individuals have significant experience and a track record for growing businesses in the CNI space.
Over the past year, we've added industry veterans to this business in key operations positions and boosting sales. These individuals have significant experience and a track record for growing businesses in the C&I space.
Galen Moore: I am encouraged by the pipeline of opportunities that our organization is pursuing and look forward to providing backlog updates throughout the year. Overall, the market backdrop.
I am encouraged by the pipeline of opportunities that our organization is pursuing and look forward to providing backlog updates throughout the year.
Overall, the market backdrop is a tailwind to the industry.
Galen Moore: The Russia-Ukraine conflict has driven up crude oil pricing and quickly made renewable forms of energy more important than ever.
Russia, Ukraine conflict has driven up crude oil pricing and quickly made renewable forms of energy and more important than ever motor sentiment regarding clean energy and energy independence is growing and we believe Congress will act passed climate related provisions to further incentivize renewable energy adoption and to reduce reliance on oil.
Galen Moore: Voter sentiment regarding clean energy and energy independence is growing, and we believe Congress will act to pass climate-related provisions to further incentivize renewable energy adoption and to reduce reliance on oil.
Galen Moore: Additionally, our customers see solar as a natural fit to offset inflationary pressures and a mechanism to reduce their reliance on carbon-based fuels and to ultimately lower their utility bills while providing energy independence on an individual basis.
Additionally, our customers see solar as a natural fit to offset inflationary pressures and a mechanism to reduce their reliance on carbon based fuels and to ultimately lowered their utility bills, while providing energy independence on an individual basis.
Galen Moore: With that, I will ask Jason to provide more specifics related to our financial results in the quarter.
With that I will ask Jason to provide more specifics related to our financial results in the quarter.
Thank you Galen and good afternoon, everyone.
Jason Bonfit: For the fourth quarter of 2021, revenue was $31.7 million.
For the fourth quarter of 2021 revenue was $31 7 million.
Jason Bonfit: This was up significantly year over year, reflecting the contribution of Solstice at $26.1 million.
This was up significantly year over year, reflecting the contribution of <unk> of $26 1 million.
Jason Bonfit: Sequentially consolidated revenue increased modestly compared to the third quarter on higher solstice revenue.
Sequentially consolidated revenue increased modestly compared to the third quarter on higher <unk> revenue.
Jason Bonfit: Revenue was negatively impacted by weather issues
Revenue was negatively impacted by weather issues.
Labor constraints.
Jason Bonfit: permitting delays in certain markets, delaying commercial industrial project progress and the related revenue into 2022.
Permitting delays in certain markets delaying commercial industrial project progress and it related revenue into 2022.
Jason Bonfit: Residential installation revenue was $26.1 million or 82% of quarterly revenue versus $2.1 million or 25% of total revenue in the prior year fourth quarter.
Residential installation revenue was $26 1 million or <unk>, 82% of quarterly revenue versus $2 $1 million or 25% of total revenue in the prior year fourth quarter.
Jason Bonfit: Commercial and public works installation revenue was $5.6 million, or 18% of total fourth quarter revenue versus $6.5 million, or 75% of the total revenue in the prior year.
Commercial and public works installation revenue was $5 6 million or 18% of total fourth quarter revenue.
Versus $6 $5 million or 75% of the total revenue in the prior year.
Jason Bonfit: Gross margin for the fourth quarter of 2021 was 47.4% compared to 25% for the fourth quarter of last year.
Gross margin for the fourth quarter of 2021 was 47, 4% compared to 25% for the fourth quarter of last year.
Jason Bonfit: Frequently, we continue to see improved gross margins and as Galen said, this improvement was due to operational enhancements in our commercial industrial section of our business with a particular focus on accuracy and our
Sequentially, we continue to see improved gross margins and as Galen said this improvement was due to operational enhancements and our commercial industrial section of our business.
With a particular focus on accuracy and our estimating process an unscheduled deployments.
This also reflects the positive contribution of residential revenue from Celsius.
Jason Bonfit: This also reflects the positive contribution of residential revenue from Solstice.
Total operating expenses for the fourth quarter of 2021 or $28 2 million.
Jason Bonfit: Total operating expenses for the fourth quarter of 2021 were $28.2 million, compared to $6.9 million for the fourth quarter last year.
<unk> to $6 9 million for the fourth quarter last year the.
Jason Bonfit: The increase was due primarily to the expenses related to Solstice. Breaking this down further, our selling and marketing expense was $11.3 million compared to $1.8 million in the year-ago quarter. This reflects the Solstice residential model, which includes commissions, as well as increased marketing efforts.
The increase was due primarily to expenses related to soldiers breaking this down further our selling and marketing expense was $11 $3 million compared to $1 8 million in the year ago quarter. This reflects the associates residential model, which includes commissions and as well as increased marketing efforts.
Jason Bonfit: G&A expense was $8.2 million compared to $5 million.
G&A expense was $8 2 million compared to $5 million primarily.
Jason Bonfit: primarily related to the expenses from Solsius in the expansion of our senior leadership team and as we invest in our marketing, information technology, finance, and legal functions as we look to
Primary related to the expenses from <unk> and the expansion of our senior leadership team and as we invest in our marketing information technology.
Finance and legal functions as we look to scale the platform.
Stock based compensation was $1 3 million compared to $10000 in the prior year quarter, reflecting grants the new employees that joined us from Celsius and other new hires.
Jason Bonfit: Stock-based compensation was $1.3 million compared to $10,000 in the prior year quarter, reflecting grants to new employees that joined us from Celsius and other new hires.
Jason Bonfit: The Solstice Retention Program RSU and option grants took best in April 2022 and are being expensed during the first year following the acquisition of Solstice.
The associates retention program are you an option grants clip vest in April 2022.
And are being expense during the first year following the acquisition of Celsius.
Depreciation and amortization was $2 million in the quarter compared to $90000 in the prior year quarter.
Jason Bonfit: Depreciation and amortization was $2 million in the quarter compared to $90,000 in the prior year quarter.
Jason Bonfit: Reflecting the amortization of $15.6 million in intangible assets identified as part of the Solse acquisition that are being amortized over the lives ranging from nine months
Reflecting the amortization of $15 $6 million of intangible assets identified as part of the <unk> acquisition that are being amortized over the lives ranging from nine months for the project backlog acquired to 10 years for trademarks and trade names.
Jason Bonfit: for the project backlog acquired to 10 years for trademarks.
Details of the future amortization expenses included in the notes to the consolidated financial statements in our 10-K.
Jason Bonfit: details of the future amortization expenses included in the notes to the consolidated financial statements.
Jason Bonfit: We also recorded a $5.5 million impairment charge related to goodwill from prior acquisitions in our commercial.
We also recorded a $5 $5 million impairment charge related to goodwill.
From prior acquisitions, and our commercial industrial business.
Jason Bonfit: While we remain excited about the opportunities to grow the commercial business over the long term, the business has not historically generated free cash flow, so our fair value calculations fell below our book value, requiring the impairment.
While we remain excited about the opportunities to grow the commercial business over the long term the business has not historically generate generated free cash flow. So our fair value calculus calculations.
Below our book value requiring the impairment.
Jason Bonfit: Just to note, and further put a point, this impairment is not related to the solstice acquisition or the related goodwill of solstice.
Just to note.
Further point this impairment is not related to the associates the acquisition or the related goodwill of Celsius.
Jason Bonfit: Our net loss for the quarter was $13.5 million.
Our net loss for the quarter was $13 5 million.
Jason Bonfit: or $0.47 loss per share compared to a net loss of $4.9 million or a loss of $0.20 per share for the
Or <unk> 47 loss per share compared to a net loss of $4 9 million or a loss of <unk> 20 per share for the prior year quarter.
For the year revenue was $101 2 million.
Jason Bonfit: For the year, revenue was $101.2 million compared to $37.9 million last year.
Compared to $37 $9 million last year.
Jason Bonfit: The increase is primarily attributable to the acquisition of Solstice, which added over $72 million of revenue in 2021.
The increase was primarily attributable to the acquisition of associates, which added over $72 million of revenue in 2021.
Jason Bonfit: Gross margin for the year was 44.1% compared to 13.9% last year.
Gross margin for the year was 44, 1% compared to 13, 9% last year.
Jason Bonfit: Operating expenses for the year were $73.9 million compared to $20.5 million last year.
Operating expenses for the year was $73 9 million compared to $20 5 million last year.
Jason Bonfit: $29.9 million of the year-over-year increase is attributable to selling, marketing, and other operating costs associated with the associate's acquisition.
$29 $9 million of the year over year increases attributable to selling marketing and other operating costs associated with associates acquisition.
Jason Bonfit: Additionally, we incurred non-cash expenses of $15.1 million, primarily related to stock compensation and amortization expense, as well as inclusion of the impaired.
Additionally, we incurred noncash expenses of $15 $1 million, primarily related to stock compensation.
And amortization expense.
As well as inclusion of the impairment.
Net loss for the year ended December 31, 2021 was $26 6 million.
Jason Bonfit: December 31st, 2021 was $26.6 million or $0.99 per basic and diluted share compared to net loss of $16 million or $1.03 per basic share in 2020.
<unk> 99 per basic and diluted share compared to net loss of $16 million or $1 <unk> per basic share in 2020.
Jason Bonfit: Turn to our balance sheet, our restricted cash.
Turning to our balance sheet, our restricted cash.
Jason Bonfit: and cash equivalents balance as of December 31st, 2021 was $19.7 million compared to $39 million as of.
And cash equivalents balance as of December 31, 2021 was $19 $7 million.
<unk> to $39 million as of December 31, 2020, reflecting the cash used to acquire Celsius.
Jason Bonfit: December 31st, 2020, reflecting the cashews to acquire solstice.
Our inventories at the end of the year were $10 $7 million compared to $1 2 million in the year ago period.
Jason Bonfit: Our inventories at the end of the year were $10.7 million compared to $1.2 million in the year ago period.
Jason Bonfit: While there continues to be supply chain constraints and delays, we believe that recent investments in working capital have positioned us well to meet our customer commitments throughout the year. With that, I'd like to turn the call back.
While there continues to be supply chain constraints and delays, we believe that recent investments in working capital have positioned us well to meet our customer commitments throughout the year.
With that I'd like to turn the call back over to Galen for closing comments.
Thank you Jason.
Jason Bonfit: The solar industry continues to grow, and as it grows, it is experiencing growing.
The solar industry continues to grow and as it grows is experiencing growing pains the supply chain challenges and made it harder for the industry to access panels in batteries. The tight labor market is impacting the industry's ability to maintain installation schedules.
Jason Bonfit: The supply chain challenges have made it harder for the industry to access panels and batteries.
Jason Bonfit: tight labor market is impacting the industry's ability to maintain installation schedules.
Jason Bonfit: Larger organizations are navigating these challenges better and smaller companies are struggling, creating distressed opportunities and incentives for combination.
Organizations are navigating these challenges better and smaller companies are struggling creating distressed opportunities and incentives for combinations.
Jason Bonfit: As such, growing and scaling our company is a key area of focus. We have built significant leverage into our model as we scale. We have significant organic growth opportunities in both C&I and residential. The most obvious of this is geographic.
As such growing and scaling our company is a key area of focus we have built significant leverage into our model as we scale, we have significant organic growth opportunities in both C&I and residential the most obvious of this is geographic expansion.
Jason Bonfit: We have recently expanded our presence in Texas, and there are additional markets we are adding to in the state.
We have recently expanded our presence in Texas and there are additional markets, where youre, adding to in this state.
Jason Bonfit: We have identified several additional markets for expansion and are targeting adding sales channel partners and increasing our direct sales channel, both of which will enable growth in 2020.
We have identified several additional markets for expansion and are targeting adding sales channel partners and increasing our direct sales channel both of which will enable growth in 2022.
Jason Bonfit: As we grow our presence and improve brand awareness in a region, we expect to expand our commercial and industrial options.
As we grow our presence and improve brand awareness in our region, we expect to expand our commercial and industrial opportunities.
Jason Bonfit: From an expense standpoint, our sales and marketing costs are tied to our revenue for the most part due to commission structure on residential sales. However, we have leverage opportunities related to GNA.
From an expense standpoint, our sales and marketing costs are tied to our revenue for the most part due to commission structure on residential sales. However, we have leverage opportunities related to G&A.
Jason Bonfit: And you can see that in the relatively modest G&A increases over the fourth quarter. An area of focus for us, especially on the solstice business, is G&A dollars per watt. We have built an organization that can support significantly higher revenues. And as we grow, we expect to see our G&A decrease as a percent of revenue.
And you can see that in the relatively modest G&A increases over the fourth quarter, an area of focus for us, especially on the <unk> business is G&A dollars per watt, we have built an organization that can support significantly higher revenues and as we grow we expect to see our G&A decrease as a percent of revenue.
When combined with gross margin expansion that should lead to improved operating margin and ultimately sustainable profit.
Jason Bonfit: When combined with gross margin expansion, this should lead to improved operating margin and ultimately sustainable profit.
Jason Bonfit: SomeWorks is committed to not only increasing sustainable shareholder value, but also to making the best possible impact on the communities in which we operate. In 2021, SomeWorks launched an Environmental, Social, and Governance, or ESG, initiative with the creation of an ESG advisory committee that is comprised of employees from all levels of the organization and is championed by myself and Judith Hall, esteemed chairperson of our board of directors.
Some works is committed to not only increasing sustainable shareholder value, but also to making the best possible impact on the communities in which we operate in.
In 2021, some works launched in environmental social and governance or ESG initiatives with the creation of an ESG Advisory Committee that is comprised of employees from all levels of the organization and has championed by myself and Judas Hall steam chairperson of our board of directors. This.
Jason Bonfit: This committee has been reviewing our environmental policies and impact.
This committee has been reviewing our environmental policies and impact, establishing social and sustainability goals and studying how our internal governance methods and indicators can be expanded beyond our own practices to our supply chain partners and other vendors I.
Jason Bonfit: establishing social and sustainability goals, and studying how our internal governance methods and indicators can be expanded beyond our own practices to our supply chain partners and other vendors.
Jason Bonfit: I'm excited by the progress being made and look forward to reporting specific accomplishments over the months to come. With that, we are now happy to answer any questions.
I am excited by the progress being made and look forward to reporting specific accomplishments over the months to come with that we are now happy to answer any questions.
Speaker Change: Certainly. Ladies and gentlemen, the floor is now open for questions. If you have any questions or comments, please press star 1 on your phone at this time.
Certainly ladies and gentlemen, the floor is now opened for questions. If you have any questions or comments. Please press star one on your phone at this time.
Speaker Change: We do ask that while posing your question, please pick up your handset if you're listening on speakerphone to provide optimum sound quality.
We do ask that while posing your question. Please pickup your handset if you're listening on speaker phone to provide optimum sound quality.
Speaker Change: Once again, if you have any questions or comments, please press star 1 on your phone. Please hold.
Once again, if you have any questions or comments. Please press star one on your phone please.
Please hold while we poll for questions.
Your first question is coming from Donovan Schafer from call. Your security your line is live.
Speaker Change: Your first question is coming from Donovan Schaefer from Collier Security. Your line is live.
Donovan Schaefer: Hey guys, congratulations on the full year results. I want to start off by asking about, you know, the revenues for the quarter. So I think when I look on a pro forma basis, if you add in Solstice,
Hey, guys.
Congratulations on the full year results.
I wanted to start off by asking about.
You know the revenues for the quarter or so.
When I look on a pro forma basis, if you add in full service.
You know for Q4 2020 revenue may have been down a little bit year over year, but it looks like most of that was on the C&I side, while the Celsius residential business I think was either flat to up year over year I'm guessing the CNI business was down just because of the.
Donovan Schaefer: you know, for Q4 2020. Revenue may have been down a little bit year over year, but it looks like most of that was on the CNI side, while the Stolzius residential business, I think, was either flat to up.
Donovan Schaefer: I'm guessing the CNI business is down just because of the kind of the redesign of the whole quoting and bidding process.
The redesign of the whole quoting and bidding process and letting some of the lower margin projects go.
Donovan Schaefer: you know, letting some of the lower margin projects go. Just is that overall that analysis are correct? Just curious if you've, you know, if I've gotten anything wrong there and if you can elaborate. Thanks.
Just is that overall is that analysis correct. Just curious if you've got anything wrong, there and if you can elaborate.
I can I can start that off Galen.
Speaker Change: I can, I can start that off Galen. The C&I business last year had about $8.6 million of revenue in the quarter. We had this quarter was $5.6 million. Partially, some of that is because we don't, we've, we've transitioned the residential business over to Sol-C.
The C&I business last year had about $8 $6 million of revenue in the quarter.
We had this quarter was $5 6 million.
Some of that is because we don't we've we've transitioned the residential business over to <unk> and that was about $1 $9 million last year. The balance is project timing and the weather and permitting related delays that we talked about in the remarks.
Speaker Change: That was about $1.9 million last year. The balance is project timing and the weather and permitting related delays that we talked about in the remarks.
Okay, Great and then actually yeah, so for the weather.
Speaker Change: Okay, great. And then actually, yeah. So, for the weather and the permitting delays, you know, you just – you talked about it as kind of a seasonal challenge. And I just want to know, was it – because – was it an – was it unusually challenging weather? Or maybe you're in geographies where it's more of a challenge?
And the permitting delays.
Just you talked about it as kind of a seasonal childhood challenge and I'm.
I just wanted to know was the.
It was it an unused was it unusually challenging weather or maybe or in geographies, where it's more of a challenge.
Speaker Change: Um, and if, you know, and if that's something we'll, we should expect in Q1 as well, Scholz Technologies reported yesterday and they highlighted that, you know, weather challenges is something for Q1 for them. So, yeah, just curious if you can elaborate there.
And if you know and if that's something we should expect in Q1 as well shows technologies reported yesterday and they highlighted the weather challenges as something for Q1 for them. So I'm just curious if you can elaborate there.
Yes, Hi, this is scaling.
Speaker Change: The weather issues in the fourth quarter were specific to Northern California where we do a significant amount of agricultural and ground mount type work. We had multi-inch, depending on where you are in California, a multi-inch rain day in early to mid-November that basically washed out, no pun intended, most of the month of November for our ability to
The weather issues in the fourth quarter were specific to northern California, where we do a significant.
Amount of agricultural and ground Mount type work.
We had multi year, just depending on where you are in California, a multi inch rain day.
In early to mid November that basically washed out.
Most of the month of November for our ability to.
Speaker Change: to do ground melt work and agricultural work. So that was a significant impact to the middle month of that.
To do ground Mount work in agricultural works.
That was a significant impact to the middle month of that quarter.
Speaker Change: I'm not, I didn't catch Shoal's presentation in Northern California, where we operate primarily again. The weather has been fairly dry in this first quarter, so I'm not anticipating the same weather delays that maybe plagued us, that did plague us in the fourth quarter.
I'm not I didn't catch shoals presentation.
In Northern California, where we operate primarily again besides the weather has been fairly dry in this first quarter. So I'm not anticipating the same weather delays that maybe.
That did plagued us in the fourth quarter.
Okay. That's helpful and then.
Speaker Change: One more question. It looks like you guys raised, just based on sort of the change in additional paid-in capital, about $14 million during the quarter. And based on kind of your starting and ending share count, I get an average share price of about $6.50.
One more question.
It looks like you guys raised just based on sort of the change in additional paid in capital about $14 million during the quarter and based on kind of just starting and ending share count I get an average share price of about $6.50.
Speaker Change: um for the raise with issued shares which you know looks great with your price now right around three dollars a share um
For the raise.
Which you know it looks great with your price now right around $3 a share.
Speaker Change: you know, is, how do you, first, I guess, is my kind of math there right, or is there anything I'm missing?
You know us.
How do you first I guess is my kind of math, there right or is there anything I'm missing.
Speaker Change: And then second, I guess, just how do you look at this going forward in terms of, you know, where, you know, where do you kind of.
And then second I guess, just how do you look at this going forward in terms of you know.
Where you know where do you kind of feel like the stock is now.
Speaker Change: you know, cheap for lack of a better word, or where do you feel like, you know, what level do you feel like it's not in the really interest of shareholders? Where do you feel like it makes sense? What do you plan to kind of do with the proceeds? You know, just kind of at a high level on that.
Cheap for lack of a better word or and where do you feel like you.
What level do you feel like its not in there really interests of shareholders, where do you feel like it makes sense.
What do you plan to kind of do with the proceeds just kind of at a high level on that.
Speaker Change: I'll start with the math part of the question. I think the average sale was about $610,000, so slightly lower than what you're describing, and there was about $12.5 million of proceeds from that.
I'll start with the math part of the question I think the average sale was about 610, so slightly lower than what you are describing there was about <unk>.
$12 $5 million of op.
Proceeds from that.
Speaker Change: I'm not going to get into sort of valuation on this call of what we would and would not do and how we value our company, but, you know, Galen talked about potential acquisitions. You know, certainly we want to secure supply chain so that we can execute on the growth strategy. So, those are sort of the main use of proceeds today.
I'm not going to get into sort of valuation on.
This call of what we wouldn't would not do.
And how we value of our company.
But.
Galen talked about potential acquisitions, certainly we want to secure supply chain. So.
So that we can execute on the growth strategy. So those are sort of the main main use of proceeds to date.
Speaker Change: Okay, that's helpful. So, yeah, I'll jump back in the queue, you know, operator, if you want to open it up to someone else. But I do have more questions. So, you know, I'll get back in the queue from here.
Okay. That's helpful.
So yeah I'll.
Jump back in the queue, operator, if you want to open it up to someone else, but I do have more questions. So I'll get back in the queue from here.
There are no other questions in the queue at this time Donovan. Please proceed.
Speaker Change: There are no other questions in the queue at this time. Donovan, please proceed.
Donovan Schaefer: Yeah, I'll keep going. So, I like the additional color on the direct sales.
Yeah, I'll keep guns, so I liked the additional color on the direct sales.
Donovan Schaefer: I'm curious to know, are you, does your, you know, your new hires, does that include, is this a door-knocking, sort of telemarketing sales? Or is this primarily a digital effort? It sounded like a decent headcount addition, so I'm guessing there might be door-knocking or telemarketing involved. Can you, yeah.
I'm curious to know are you does your you know your new hires does that include the.
Door, knocking sort of telemarketing sales force or is this primarily a digital effort it sounded like a decent head count additions I'm guessing there might be door, knocking or telemarketing involved.
Can you.
Yeah.
Yeah, absolutely on the residential side.
Speaker Change: Yeah, absolutely. On the residential side, we launched the direct sales effort in the summer of last year. It was a post-acquisition initiative that was part of the acquisition thesis when we acquired Solstice. Brian Jackson, who was one of the founders of Solstice and was in charge of Solstice's entire sales effort, transitioned into this new growth.
We launched the direct sales effort in the summer of last year. It was a post acquisition initiative that was part of the acquisition thesis when we acquired sources.
Brian Jackson, who was one of the founders of associates from was in charge of soldiers entire sales effort.
<unk> transitioned into this new growth.
Brian Jackson: emerging market role or emerging role and has built an incredible organization over the last now eight months.
Emerging market role for emerging role and has built an incredible organization over the last eight months.
Brian Jackson: At this time, they're butting up against being our second-largest revenue contributor. Month-to-month, it varies between them and one other channel partner. So they're doing really well. Are they door-knocking?
There are budding up against being our second largest revenue contributor a month to month it varies between them in one of their sales channel and one of the partner channel partner, So they're doing really well are they door knocking absolutely telesales involved areas.
Brian Jackson: of telesales involved there is. Are we at a digital presence yet? We are strongly, closely evaluating adding a digital selling initiative to the way that we're currently selling products. But at the moment, our digital efforts are limited to traditional marketing and lead generation, but not actually offering product through online.
Are we at a digital presence yet we are strongly closely evaluating adding a digital selling.
Initiatives to the way that we're currently selling products, but at the moment. Our digital efforts are limited to traditional marketing and lead generation, but not actually offering product through online offering at this time.
Okay.
Speaker Change: Okay, that's great. And then for sort of geographic expansion.
That's great and then for sort of geographic expansion.
Speaker Change: You know, there was, of course, the news, there's been a lot of headline-grabbing news around California numb, 3.0, and then now Florida recently passed something. I don't think the.
You know there was of course the news there's been a lot of headline grabbing news around California.
Oh, and then now Florida recently passed something I don't think the.
Speaker Change: the governor has not signed it into law yet. But, and I know you're not in Florida, but I think, you know, here and there, there are some states, maybe one of the Carolinas or something.
The governor has not signed into law yet but.
And I know you're not in Florida, but I think you know here and there there are some states that are going into the Carolinas or something.
Speaker Change: I'm curious, as you look to geographic expansion, do these developments, you know, were you targeting Florida as somewhere you'd go in the next year or two, or was that sort of not an ideal geography for you for other reasons? And then, are there some of these other geographies like, you know,
Curious as you look to geographic expansion do these developments.
Where are you targeting Florida somewhere you'd go in the next year or two or was that sort of not an ideal geography for you for other reasons and then are there. Some of these other geographies like you know, if it's I forget, which carolina, but or other states that are considering.
Speaker Change: I forget which Carolina, or other states that are considering net metering revisions that sort of change where you want to go geographically.
Metering revisions that sort of change where you want to go geographically.
Speaker Change: First question I think was whether or not Florida was in our potential pipeline. Florida was not in our potential pipeline. We have a
First question, I think was whether or not Florida.
Our potential pipeline, Florida was not in our potential pipeline, we have a very close relationship with a sales channel partner, who sells quite a bit for us in the west of the United States, but they do self fulfilling Florida and they do an excellent job and we wouldn't want to encroach on on that so we've never really haven't looked at moving into Florida.
Speaker Change: a very close relationship with a sales channel partner who sells quite a bit for us in the west of the United States, but they do self-fulfill in Florida and they do an excellent job and we wouldn't want to encroach on that. So we've never really had looked at moving into Florida. I'm sad to see the NEM bill in Florida pass. It is definitely counter to the industry and it will be challenging for those folks that operate in Florida, but fortunately that's not us.
I'm sad to see the NIM Bill in Florida pass it is definitely counter to the industry.
And it will be challenging for those folks that operate in Florida, but unfortunately, that's not us other.
Speaker Change: Other states that are looking at NEM rules, we track them as closely as we can, and whenever we go into or look at going into a new market, there's a dozen-plus criteria that we evaluate, and certainly the legislative or regulatory outlook in that market is something that we consider. There's no question there. With regard to some of the markets that we are looking at, Texas continues to be a great state for us. We continue to move into new states and cities.
Other states that are looking at them rules, we track them as closely as we can.
And whenever we go into or look at going into a new market.
You know a dozen plus criteria that we evaluate and certainly the legislative or regulatory outlook in that and that market is something that we consider there's no question there.
With regard to some of the markets that we are looking at Texas continues to be a great state for US we continue to move into new cities.
Areas within Texas and intend to continue to be successful there. So there's really no recent presto.
Speaker Change: areas within Texas and continue to be successful there. So there's really no reason for us to...
Speaker Change: to not continue to expand into Texas. With regards to other states around that or in the south, we're carefully evaluating and we'll be announcing over the next six months what we're going to be doing with regards to other states.
It should not continue to expand into Texas with regards to other states around that are in the south.
We are carefully evaluating and we'll be announcing over the next six months, what we're what we're going to be doing with regards to other states for California's <unk> III play, though I'm optimistic when the PUC when the utility Commission pulled the previous proposed decision that the new proposed decision will be considerably less onerous.
Speaker Change: For California's NEM 3.0, I'm optimistic when the PUC, when the Utility Commission pulled the previous proposed decision, that the new proposed decision will be considerably less onerous. But if it does, we're prepared for that. We have evaluated
But if it does we're prepared for that we have evaluated solutions that do not include export or off taking and would make therefore, hopefully depending on how it's actually written not triggering that export fee.
Speaker Change: solutions that do not include export or off-taking and would make, therefore.
Speaker Change: hopefully, depending on how it's actually written, not triggering that export fee of what was $8 per kilowatt in the previous decision.
What was eight kilowatts per $8 per kilowatt and the previous decision. So we're we are prepared to offer solutions that will work under the new <unk> III pointed out if for whatever the new name <unk> is in California, we are bullish on California.
Speaker Change: So we're, you know, we're prepared to offer solutions that will work under the new M 3.0. If or whatever the new M 3.0 is in California, we're bullish on California. It's a market with tremendous growth opportunity in a.
The market with tremendous growth opportunity in a had a constituency that wants solar and I really can't walk away from that government makes it more difficult for us we will figure out a way around it.
Speaker Change: and a constituency that wants solar. And then we really can't walk away from that. And if government makes it more difficult for us, we'll figure out a way around it.
Okay, Alright, that's interesting and I think I feel like yeah, I think I've heard of some sort of idea of how you can.
Speaker Change: Okay, all right, that's interesting. I think I feel like, yeah, I think I've heard of some of this sort of idea of how you can.
Speaker Change: avoid whatever statutorily would trigger the idea of putting solar back into the grid so you can avoid the fees and kind of net out positive. So, that's great. On the CNI side of the business, you know, you guys have brought in someone who, you know, has a pretty good track record from Borrego Solar. You know, they are a pretty – they're private at CNI Focus.
Avoid.
Whatever statutory would trigger the idea of putting solar back into the grid. So you can avoid the fees and kind of net out positive. So.
That's great.
On the C&I side of the business you know you guys have brought in someone who.
It's a pretty good track record from Brexit Solar you know the.
They're private C&I focused.
Speaker Change: um, you know, sort of installer, um, or UPC.
You know sort of installer.
P C.
Speaker Change: is are there specific states, you know, CEA and WMAC, and I think it was their Q4 sort of update highlighted Illinois and New Jersey as states that had changed.
Is are there specific states.
And woodmac and I think it was there I think it was their Q4 sort of update highlighted Illinois, and New Jersey are states that had changed.
Speaker Change: policies that would really drive CNI business. But I don't, I think you're in New Jersey, but I don't think you're in Illinois, but just in general, you're looking to expand CNI.
Policies that would really drive C&I business, but you know I don't I think here in New Jersey, but I don't think you're in Illinois, but just in general you know you're looking to expand C&I and leverage the footprint with Sofia is from a logistics standpoint, so there's certain out of the states that you're in or that Youre looking at are there certain ones that are particularly exciting.
Speaker Change: leverage the footprint with Folsius from a logistic standpoint. So there's certain out of the states that you're in or that you're looking at are certain ones that are particularly exciting to you. Is it sort of state, you know, is it policy driven or just certain states maybe have great
To you.
Is it sort of state.
Policy, driven or just certain states maybe up great.
Speaker Change: you know, sort of demographics or businesses or.
Sort of demographics or businesses or.
Speaker Change: uh, you know, solar resources or whatever it is, just curious there from a geographic standpoint where you're sort of most excited or most interested on the CNI side.
You know solar resources or whatever it is it just curious there from a geographic standpoint, where do you sort of most excited our most interested on the C&I side.
I'm excited and interested in the northeast for sure. We have a we have a person there who has a project manager slash developer.
Speaker Change: I'm excited and interested in the Northeast for sure. We have a we have a person there who is a project manager slash developer, and we consider it. We constantly are considering expanding operations in the Northeast. And for the most part, the only thing that's held us back from from really pushing forward was we spent, we spent most of 2021 getting our house in order with regards to how we estimate how we quote, how we execute. What's the right model? What's the right mix?
And we consider we constantly are considering expanding operations in north eastern.
For the most part the only thing that's held US back from you really pushing forward was we spent we spent most of 2021 getting our house in order with regards to how we estimate how we quote how we execute what's the right model, what's the right mix.
Speaker Change: We needed some time. I was new. We needed some time to really get to know what we were doing with regards to the market and how to approach it and what we wanted to change and we did make those changes.
We needed some needed some time I was knew we needed some time to really get to know what we're doing with regards to the market and how to approach it and what we wanted to change and we did make those changes. So the northeast is an area. We're very interested in and looking at now now that we're ready to move and expand.
Speaker Change: So the Northeast is an area we're very interested in and looking at now that we're ready to move and expand an area that we're considering very, very closely. I think the Mid-Atlantic has some interesting opportunities in it as well, with regards to legislation or proposed regulation. And then obviously with regards to the, or I shouldn't say obviously, but with regards to the Solstice footprint of locations off there in 10 states.
An area that were considering very very closely I think the mid Atlantic has some interesting opportunities in it as well with regards to legislation or proposed regulation.
And then obviously with regards to the wash its obviously, but with regards to the associates footprint of locations off there in 10 states.
Speaker Change: Every one of those states has a physical presence that we could leverage to very quickly start offering services in those states.
Every one of those states has a physical presence that we could leverage to very quickly.
Our offering services in both states.
Credible.
Speaker Change: And then, of course, let me finish with, there's always inorganic expansion as well. There's candidates all throughout the United States or candidate companies all throughout the United States who are looking actively seeking the opportunity to combine with or merge with another organization.
And then of course, let me finish with Theres always inorganic expansion as well Theres candidates all throughout the United States, Canada companies all throughout the United States, who are looking actively seeking the opportunity to combine with the merge with another organization.
Yes.
Okay.
Speaker Change: Okay, that's great. Just an interesting, so coming back to the residential, you know, you did mention there are sort of parameters you look at when you think about what residential markets, you know, what states you're interested in for geographic.
Okay, that's great.
And interesting so coming back to the residential yeah. You did mentioned there are sort of parameters you look at it when you think about what residential markets, which states you're interested in for geographic.
Speaker Change: expansion and you know I it stands out to me your sort of approach of the you know you're sort of below your typical installation with Solstice is
Expansion in.
No I I it stands out to me or sort of approach of the your sort of below your typical installation with soldiers.
Smaller than the average I think you know sort of U S solar installation and so maybe that goes after sort of different demographics, and where you can kind of have this.
Speaker Change: smaller than the average, I think, sort of U.S. solar installation. And so maybe that goes after sort of different demographics and where you can kind of have this attractive, reasonably priced kit, like your best-selling offering.
Tractive are reasonably priced to like your best selling offering.
Speaker Change: does that change like if you compare yourself to your peers um you know the publicly traded peers
Does that change like you compare yourself to your peers.
Publicly traded peers.
Speaker Change: what attributes do you bring in when looking at what state to expand into? Some southern states are historically lower.
But what what are the attributes you bring in when looking at what stage to expand into some <unk>.
Southern States are sort of historically sort of lower average per capita incomes and things like that and so you know maybe that plays better to what you offer versus other companies.
Speaker Change: average per capita incomes and things like that. And so, you know, maybe that plays better to what you offer versus other companies.
Speaker Change: What are the attributes you look at and are there certain specifics where it's different for you than what someone else would look at when they're expanding into another state or area?
What are the attributes you look at and.
And are there certain specifics, where it's different for you than what someone else would look at when they're expanding into another state or area.
Speaker Change: So let's see, one of the things we obviously look at is the cost of energy. I mean, if you're in a state where energy is just very, very low cost, it is that much more challenging. States that don't have any sort of export.
So, let's see one of the things, we obviously look at the cost of energy I mean, if you're if you're in a state where energy is just very very low cost is that much more challenging states.
States that don't have any sort of export.
Speaker Change: renumeration for the individual or at least credit against their electrical bill, it makes it harder for these things to pencil out. With regards to, you know, the customer income or the demographic, we believe in solar for everybody. So, we're pushing solar solutions that can save, you know, a small house in Arizona.
<unk> for the individual or at least credit against their electrical bill. It makes it harder for these things to pencil out.
With regards to <unk>.
The customer income or the demographic.
We believe in solar for everybody. So so we're we're pushing solar solutions that can save.
Small house in Arizona.
Speaker Change: Most of their electric bill or a large house and somewhere else. Most of their electric bill. The solutions scale from, you know, 8 to 10 panels all the way up to, you know, 70.
Most of their electric bill or a large house in somewhere else most of their electric Bill the solutions scale from.
8% to 10 panels, all the way up to 70.
<unk> panels.
Speaker Change: on some of these projects. But I would say that the vast majority of the customers that we sell to are primarily interested in saving money and they're primarily interested in, you know, increasing the value of their homes and so forth. Not necessarily large off-grid solutions that maybe some other people are talking about when they're talking about the size of the system.
Some of these projects, but I would say that the vast majority of the customers that we sell to are primarily interested in saving money and they are primarily interested in increasing the value of their homes and so forth not necessarily large off grid solutions that maybe some other people are talking about what they are talking about the size of them.
I'm, saying so.
Speaker Change: Okay, um and then I think my last question and then I'll also take the rest offline as just
Okay.
And then I think my last question and then I'll also take the rest offline is just.
Speaker Change: Um for for storage and the battery side of things, you know, I know historically it's been relatively low attachment rate for you guys and not and kind of on purpose because you know, you're you're trying to
For storage in the battery side of things I know historically, it's been relatively low attachment rate for you guys or not and kind of on purpose because you know youre trying to.
Speaker Change: uh, you know pump out these installations and volume and you know batteries have been one of the supply chain constraints and so You know, even the sales force, you know, the sales force itself doesn't want
You know the pump out these installations in volume and batteries has been one of the supply chain constraints and so you know even the sales force the sales force itself doesn't want.
Speaker Change: the payout of their commissions to be delayed by waiting on a battery.
The pay out of their commissions to be delayed by waiting on a battery, but I'm. Just curious if you sort of have any updates there on the residential side of the business. If it is something you plan to bring into these kind of kits the base kind of model you offer.
Speaker Change: But I'm just curious if you sort of have any updates there on the residential side of the business.
Speaker Change: if it is something you plan to bring into these kind of kits, the base kind of model you offer in a way that is available. I mean, I know, again, with supply chains right now, that might be hard. But maybe a year down the road, is that seen as a growth factor for you, something where you can drive growth with higher attachment rate? And then also, have you seen more interest for storage with CNI business and projects you're bidding on for the CNI?
In a way that as you know available I mean, I know again with supply chains right now that might be hard, but maybe a year down. The road like is that does that seem as a growth vector for us something where you can drive growth with higher attachment rate and then also have you seen more interest for storage with C&I business and projects you're bidding on for.
C&I stuff.
Speaker Change: So, on the residential side, we are starting to see increased interest in batteries. I think it's inevitable that systems will have more batteries as batteries become less expensive and more available. Electricity continues to increase, and states and utilities look at time-of-use type of rate changes. And I think it's just inevitable, but we are seeing more. But right now, the primary focus of the Solstice business is the ability to provide solar to many, many people in a very short period.
So on the residential side.
We are starting to see increased interest in batteries I think it's inevitable that sister systems, we'll have more batteries as batteries become less expensive and more available electricity continues to increase and states.
And utilities look at time of use type of rate changes and I think it's just inevitable.
We are seeing more.
But right now the primary focus of the sausage business is the ability to provide solar to many many people in a very short period of time.
Speaker Change: We can – our crews can do two, sometimes three house installations in a single day. So it's a very, very fast-term business. And as – if we add – if we add batteries and we add supply chain constraints into that, we really need to look at more elaborate solar and storage solutions for larger customers with the ability to –
We can our crews can do two sometimes three house installations in a single day. So it's a very very fast turn business and.
If we add if we add batteries and we had supply chain constraints into that.
Really need to look at a more elaborate solar and storage solutions for larger customers with the ability to.
Speaker Change: either hold larger loans or put more money into the system, into the project, and it doesn't really meet the demographic that we're pushing at right now, which we think is the vast majority of homeowners in the territories that we offer.
Either hold larger loans or put more money into the system into the project.
It's really meet the demographic that we're pushing out right now, which we think is the vast majority of homeowners in the territories that we operate in less than 4% of AV homes in United States have any sort of solar on them at all.
Speaker Change: less than four percent of homes in the United States have any sort of solar on them at all. It's a wide open market and the space we're playing in.
I'd open market and the space, we're playing in just solar is something people think about they talk about it a little bit, but when you pencil the numbers in right now it often doesn't work on.
Speaker Change: Solar is something people think about, they talk about it a little bit, but when you pencil the numbers in right now, it often doesn't work. On the CNI side of the, but that said, we are actively looking at different solar battery manufacturers and battery technologies. I'm meeting with some next week at the Roth Conference, met with some last two weeks ago out of Pennsylvania. There's all kinds of technology providers that are coming to us and asking us to consider their solutions, and we're looking at them all.
On the C&I side of it but that said we are we are actively looking at different solar battery manufacturers battery technologies.
Meeting with some next week at the Roth Conference met with some last for two weeks ago.
Pennsylvania, there's all kinds of technology providers that are coming to us and ask.
Asking us to consider their solutions and we're looking at them all the time on the commercial side of the business, we're definitely seeing an uptick in battery storage, but that's partially because we operate primarily in California and in California with the time of use and the idea of great shaving, it's very very simple to make batteries work.
Speaker Change: On the commercial side of the business, we're definitely seeing an uptick in battery storage, but that's partially because we operate primarily in California, and in California, with the time of use and the idea of rate shaving, it's very, very simple to make batteries work, and we've installed, you know, a number of different systems over the last year.
And we've installed a number of different systems over the last year.
Sure.
Okay, great very helpful. Congratulations Thank you guys.
Speaker Change: Okay, great, very helpful. Well, congratulations, thank you guys. And I'll take the rest of the questions, I'll reserve the rest of my questions for offline.
I'll take the rest of the question or reserve the rest of my questions for offline.
Thank you Don and thank you.
Speaker Change: Thank you. That concludes our Q&A session. I will now hand the conference back to our hosts for closing remarks. Please go ahead.
Thank you that concludes our Q&A session I will now hand, the conference back to our host for closing remarks. Please go ahead.
So thank you everybody for joining our call and for your continued interest and support in some works I'd like to let people know I did mentioned, we'll be at the Roth Conference. This coming week, we will be participating in that conference. If anybody listening here is attending and would like to meet or has follow on questions.
Speaker Change: So, thank you, everybody, for joining our call and for your continued interest and support in SunWorks. I'd like to let people know, I did mention we'll be at the Roth Conference this coming week. We will be participating in that conference if anybody listening here is attending and would like to meet or has follow-on questions at the conference or in any other format. Please reach out to Rob Fink and the FNK-IR team to schedule some one-to-one time with Jason and or myself. Thank you.
At the conference here and any other format. Please reach out to Rob Fink and the F. N K IR team to schedule. Some one to one time with an adjacent Andrew or myself. Thank you.
Speaker Change: Thank you, ladies and gentlemen. This concludes today's event. You may disconnect at this time and have a wonderful day. Thank you for your participation.
Thank you ladies and gentlemen. This concludes today's event you may disconnect at this time and have a wonderful day. Thank you for your participation.