Correlate Energy Corp. reported significant financial developments in its 10-Q filing for the quarter ending September 30, 2024. The company, which focuses on technology-enabled clean energy solutions, experienced a substantial increase in revenue, with Q3 2024 revenues reaching $4.54 million, compared to $930,277 in Q3 2023. For the nine months ended September 30, 2024, total revenues were $6.84 million, up from $5.14 million in the same period the previous year.
Despite the revenue growth, the company reported a net loss of $2.29 million for Q3 2024, an improvement from a net loss of $3.38 million in Q3 2023. However, the nine-month net loss for 2024 was $28.99 million, significantly higher than the $8.36 million loss reported for the same period in 2023. This increase in losses was attributed to a rise in operating expenses, which totaled $6.37 million for the nine months ended September 30, 2024, compared to $4.49 million in 2023, marking a 42% increase. Additionally, other expenses surged to $21.87 million in 2024 from $5.19 million in 2023.
The company's total current assets increased to $4.35 million as of September 30, 2024, up from $2.89 million at the end of 2023. However, total current liabilities also rose to $9.91 million, leading to a total stockholders' deficit of $(4.64) million, compared to $(3.18) million at the end of 2023. The additional paid-in capital saw a significant increase to $45.41 million from $17.87 million.
In terms of strategic developments, Correlate Energy engaged in debt conversion activities, converting approximately $7.20 million of outstanding notes and advances into equity. The company also issued new convertible notes and entered into bridge loan agreements to bolster its financing. Notably, the company’s management plans to pursue aggressive marketing, acquisitions, and additional capital raising to achieve profitability.
The company’s cash position deteriorated, with cash at the end of Q3 2024 reported at $318,008, down from $3.22 million a year earlier. Net cash used in operating activities for the nine months ended September 30, 2024, was $(2.11) million, a stark contrast to the net cash provided of $583,590 in the same period in 2023.
In governance changes, several board members resigned in November 2024, and interim leadership was appointed, indicating potential shifts in the company's strategic direction.
About Correlate Energy Corp.
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