Pineapple Energy Inc. (NASDAQ:PEGY) Q4 2023 Earnings Call Transcript

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Donovan Schafer: Okay. Okay. And then, I have a question for, Eric. So, in the adjusted EBITDA or pro forma EBITDA reconciliation, I saw that in the fourth quarter of 2023, there was this about a $1 million write-off for legacy CSI receivables. And of course, that has to do, that’s with the legacy company that there is the reverse merger into that. And so operationally, it has absolutely no tie to what you guys do. But, I guess I’m curious, is there any way of recovering that at all? Is it for you, is it a receivable there’ll be a claim for Pineapple versus CSI’s former owners and shareholders? Or is it a claim of CSI from its legacy business to a customer? And just kind of what happened there, if it can still be recorded in any way?

Eric Ingvaldson: Yes. The receivable was, it’s a long standing receivable due from the government entity that we received news in the fourth quarter that the likelihood of collection was drastically reduced. It is related to the subsidiaries of which we sold the assets already. But, it would, it is an asset of the CVR holders. So, if we are to collect that money, that money would be distributed to the CVR holders. We wanted to include it in discontinued operations, but accounting guidance had it in our continued operations since those legacy assets had already been sold. But, unlikely it will be collected and if it is, it would be distributed to the CVR holders.

Operator: Seeing no more questions in the queue, let me turn the call back over to Mr. Udseth, to conclude the call.

Kyle J. Udseth: Thank you, operator. To conclude, speaking on behalf of the entire Pineapple leadership team, we’re pleased with the strong results we were able to deliver in 2023 on the revenue front and especially with four quarters of positive adjusted EBITDA. So, I’d say pleased but never satisfied. We need to continue pushing forward to help more homeowners go solar, holding the line on cost and pursuing growth by acquisition as well. Thanks to everyone listening to or reading this for your ongoing engagement. These past two quarters have presented a challenging operating environment and have been a really tough time for pretty much everyone I know in the industry. But, for better or worse, we are on the solar coaster, and I think the ride will become fun again in the second half of the year for the companies that can make it through.

Utility rates keep going up, solar costs keep coming down, and interest rate cuts are on the horizon. That’s a winning setup for consumers and a winning setup for rooftop solar and battery storage. Pineapple will be there to keep helping homeowners and leading the industry forward. Thank you again for joining us this afternoon and for your continued support. If you have any questions, please contact Eric or me. This concludes our call today. You may all disconnect. Thank you.

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