Solar Alliance Energy Inc. (‘Solar Alliance’ or the ‘Company’) (TSX-V: SOLR), a leading solar energy solutions provider focused on the commercial and community utility solar sectors, announces it has filed its unaudited financial results for the three, and nine-month period ended September 30th, 2024. The Company’s Financial Statements and related Management’s Discussion and Analysis are available under the Company’s profile at www.sedarplus.ca.
All figures in Canadian $
Solar Alliance continues to transition towards the delivery of higher value contracts in the Commercial and Industrial, Community Solar and USDA supported rural solar renewable market sectors in the South East US region. The board believes that this is a market with blue sky potential for the Company, in a world in which burgeoning energy demand will put security of power supply at increased risk and bring the threat of escalating energy prices. The directors believes also that the management and operations team have the capacity, skill-set and track record to deliver high value energy solutions to its target customer base and, on foot of this, significant returns to shareholders, particularly from the base of the current share price.
Financial highlights, Quarter 3 2024
Revenue for the three months ended September 30, 2024, was $945,303, a decrease of 61% from $2,410,725 in the same period in 2023.
Cost of sales of $505,959 (Q3 2023: $922.934) resulting in a gross profit of $439,344 (Q3, 2023: $1,487,791).
Total expenses for the period were $590,115, a modest reduction from $600,316 in the comparable period in 2023, as the Company continues to maintain tight cost controls and implement overhead efficiencies to support its profitability and cashflow targets.
Net comprehensive loss for the quarter of $177,009, compared to a net profit of $665,759 in the comparable prior year period.
Cash balance of $15,512 as of Sept 30, 2024, prior to receipt of the contract proceeds referred to above.
Placing the above metrics into broader context, on October 28th, the Company announced the signing of a $3.7 million Kentucky customer contract for the provision of 1.5Ms of solar renewable energy. An initial payment of $1.7 million has been received to date in respect of this contract. The Company plans to substantially complete this project, weather permitting, within three months.
Business highlights during the quarter and subsequently.
$3.7 million contract signed for project in Kentucky. On October 28th, 2024, the Company announced it had signed a two-site contract for the design, engineering, and construction of a 1.5Mw commercial solar project for a customer in Kentucky. The project, with a $3.7 million capital cost, is scheduled to begin construction in Q4 2023 with substantial completion targeted within three months.
AESSEAL completed a Solar and Battery Storage system in Tennessee. The Company recently finalized, for Tennessee based AESSEAL Inc., a constituent company of AESEAL plc, a global leader in mechanical seal solutions, the completion of a 0.5Mw rooftop solar panel installation, which was integrated into a 500kwHrs battery, a first of its type and size in the TN region, providing the customer with reduced energy costs, increased certainty of power supply, and an attractive return on investment.
“The Kentucky contract epitomizes the larger scale of contract in the US SE region which the Company is vigorously pursuing as it also maintains tight control on costs, improves project gross margins, and targets aggressive growth from the current base of activity.
“The AESSEAL contract evidences the Company’s capacity to execute complex, parallel behind-the meter/grid connected, renewable energy contracts to meet the specific energy requirements of sophisticated corporate customers,” concluded Timmons.
