As of September 30, 2024, Acorn Energy, Inc. reported significant financial improvements compared to the same period in 2023. The company achieved total revenue of $7,457,000 for the nine months ended September 30, 2024, marking a 28% increase from $5,809,000 in the prior year. This growth was driven primarily by the Power Generation (PG) segment, which generated $6,681,000, a 33.8% increase from $4,994,000 in 2023. The Cathodic Protection (CP) segment, however, saw a slight decline in revenue, totaling $776,000, down 4.8% from $815,000.

Gross profit for the nine-month period rose to $5,443,000, representing a 25% increase, although the gross profit margin decreased slightly from 75% to 73%. Operating income turned positive at $1,092,000, a significant recovery from an operating loss of $4,000 in the same period last year. Net income attributable to Acorn Energy stockholders also saw a substantial increase, reaching $1,061,000 compared to $35,000 in 2023.

For the three months ended September 30, 2024, revenue was $3,050,000, a 46% increase from $2,087,000 in the same quarter of 2023. Gross profit for this quarter was $2,187,000, up 41% year-over-year, with an operating income of $756,000 compared to a small operating income of $8,000 in the prior year.

The company’s balance sheet showed total current assets of $4,531,000, up from $4,036,000 at the end of 2023, while total liabilities decreased significantly to $5,089,000 from $6,275,000. This led to an improvement in stockholders’ equity, which was reported at $288,000, compared to a deficit of $(838,000) at the end of 2023.

Strategically, Acorn Energy has focused on enhancing its product offerings, including a new contract with a major cell phone provider for monitoring hardware and services, expected to generate approximately $5 million over its duration. The company also implemented a reverse stock split in September 2023, which has been reflected in all share and per-share amounts.

Despite these positive developments, the company reported material weaknesses in internal controls over financial reporting, particularly at its OmniMetrix subsidiary. Management has initiated remediation actions to address these issues, including enhancing IT general controls and establishing more robust authorization processes.