SolarMax Technology, Inc. reported its financial results for the third quarter ended September 30, 2024, revealing a consolidated net loss of $9.6 million, or $0.21 per share. This compares to a profit of $0.037 per share in the third quarter of 2023, indicating a significant downturn in profitability.
Total revenues for the quarter were $6.33 million, marking a 56% decrease from the same period in 2023. This decline was attributed to external factors, including increased borrowing costs from higher interest rates and a comparison against an unusual surge in demand in Q3 2023 due to pre-regulatory changes in California's residential solar market.
The company recognized a $7.5 million goodwill impairment associated with its China segment, which has not generated any revenue since 2022. Additionally, operating expenses were impacted by a $1.3 million expense related to the termination of forfeiture provisions of restricted stock, contributing to the higher overall loss for the quarter.
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