Complete Solaria, Inc.

Hello, my name is T.J. Rogers. You're up to complete solar earnings release. Normally, am I going through properly? Normally, I insist on having an in-house board meeting. I was in Salt Lake a couple days ago. Orem is actually where our headquarters is now. A couple days ago, I got sick and tried to fly home. My airplane had a bad valve in it, so I'm homesick with no airplane. So Dan and I are going to handle this call. We've got a good report. We're going to handle this call, but in the future you should expect to see a boardroom with – me and the VP's in it, ready to answer questions. Today we'll handle that with just two of us. Okay. Presentation. This is our third quarter report. Q3 24 and Q4 24 forecasts are as follows. And this is control A turns on the arrow. This is for the old Complete Solaria, and then there will be a new section on the combined company. We've emerged for weeks, more than a month, and we're looking forward, but this is the last official report of Complete Solaria. We've done the acquisition of some parts of assets. We've taken three divisions, New Homes, Blue Raven Dealer. I'll talk about that later. We had a little court battle for the rights to the SunPower brand. The Chinese tried to take it away from us. We won that one. We've also got, here's the SunPower brand. We've taken, our company has only 65 people in it now. And we've just hired 1,204 SunPower employees. So it is in a way, it's not a technical way of saying it, but it's like a reverse merger. The minnow swallows the whale, and we hired the people we wanted with interviews, and then the new company goes away, and the old Sun Power takes care of its business without us. We raised $80 million last quarter through convertible debt offerings to get the $45 million that we paid for SunPower. That was a stocking horse bid in SunPower's Chapter 11 bankruptcy. And we've got all of that in the bank except for the last $14 million is coming in from Chinese investors. It'll be here in early December. So we've got $80 million to keep the company running. So here we have the official reports. I've got GAAP and non-GAAP for old, complete solar. So in the small company, we were 5.5 million in revenue. We were having a hard time turning back on, but we're now in a company that's much bigger than that. So this is not really that relevant. There were write-offs that led to lousy gross margin, and we raised $79 million to effect the acquisition. This is a slide that's on our website. This is a slide I showed investors. This was complete salaria. We went into a period of decline when private equity cut off our funding, and we literally couldn't buy panels to put on roofs. And this is our last quarter, and we didn't really, we're focusing on other things, but we didn't really grow from it. And I showed investors this number and said this number is possible. And today I'm going to report on the number and what it looks like. The first five-quarter plan is done. It's been through five revisions, and it's what I said. It needed 80 million funding, and it promised 100 million. I'm going to update you on that today. It also said that we had a startup mentality where we took the revenue we could get, And then we built the company from it. So when we built the company, we actually used Old Sun Power. It's 2,800 people as a hiring pool. There were many of them that worked on jobs that we weren't going to carry forward. And then in other cases, given it was a bigger company, we had a really high-quality pool to choose from, and we interviewed everybody. And we got the best ones we could. We had a minimum of three interviews for each person. We then constructed our company and to have minimal losses, operating income in the first quarter of this plan, followed by profitability mid-25, so relatively low losses on the new company, and I'll report on that today. We then reorganized the company. along the lines of a startup. That is, you got $100 million in revenue. Everybody was saying, well, gee, Sunpar needs $700 million to get that done. The investors in Texas were, actually it was BAML, was saying, no way, no more money, we've had it. So we were wondering what to do, and I went through a series of planning steps One was we're not going to fund our customers anymore. There are professional funding companies. We will use them. There are sophisticated companies that are better than our engineers in the back room at doing financing. And of the $750 million that Sunpel was asking for to remain viable, $500 was that, and then the $550, and then they had $200 for operating. That was too much, too. That was $470 million, and they couldn't pay it. So that caused their Chapter 11 bankruptcy. My idea was the interesting thing is if you go in this direction, one jogging distance, I can get to Sand Hill Road. And I said, we'll do a startup. You got a name called SunPower. You got $100 million in revenue. I said, I would not need to jack more than two buildings down Sand Hill Road before I'd find the funding we needed for a startup like that. It's a great deal. So that was the deal. We're going to do a startup. We're going to take the revenue we can get, and we're going to build a company around it. And that was a very difficult task. We had SunPower. We had a company called Blue Raven, which SunPower owned, but it never integrated. Blue Raven was in Orem, Utah, which is south of Salt Lake. And if you wanted to say what's the San Jose of the Salt Lake complex of solar companies, you'd pick Orem. And so that company is totally different, different culture. Then we got SunPower, totally different culture. But they had gone to scale, so they knew a lot about how to scale up a company that we didn't know. And then you've got Complete Solaria, which was a dealer company. We bought orders from the dealer network.