Acorn Energy, Inc. reported significant financial growth in its latest 10-K filing for the fiscal year ending December 31, 2024. The company, primarily through its subsidiary OmniMetrix, generated total revenues of $10.986 million, marking a 36% increase from $8.059 million in 2023. This growth was driven by a substantial rise in hardware sales, particularly from a new contract with a major telecommunications provider, which contributed approximately $1.637 million in hardware revenue. The gross profit for the year was $7.999 million, resulting in a gross margin of 73%, slightly down from 74% in the previous year.
The financial performance reflects a notable shift in the company's operations, particularly in its Power Generation (PG) segment, which accounted for 90% of total revenues. PG revenues increased from $7 million in 2023 to $9.882 million in 2024, while the Cathodic Protection (CP) segment saw a slight decline in its revenue contribution. The increase in hardware revenue was attributed to the recognition of sales from the new monitoring hardware and an uptick in the number of monitored connections, which also boosted monitoring revenue by 7% to $4.553 million.
In terms of operational developments, Acorn Energy's employee count remained stable at 26, with a focus on enhancing its research and development capabilities. R&D expenses rose to $1.012 million, up from $875,000 in 2023, reflecting investments in product innovation and development. The company is also pursuing strategic opportunities for growth, including potential acquisitions and partnerships to enhance its market position in the energy infrastructure sector.
Looking ahead, Acorn Energy anticipates continued revenue growth driven by the expansion of its customer base and product offerings. The company has a backlog of $4.2 million as of December 31, 2024, with $3.5 million expected to be recognized as revenue in 2025. However, the company also faces challenges, including the need to improve its internal controls over financial reporting, as identified in the filing. Management has acknowledged material weaknesses in its internal control systems and is committed to addressing these issues to ensure accurate financial reporting and compliance.
Overall, Acorn Energy's outlook remains positive, with expectations of sustained growth in both hardware and monitoring services, supported by strategic initiatives and a focus on innovation in the rapidly evolving energy management market.
About ACORN ENERGY, INC.
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