The following discussion and analysis of our financial condition and results of
operations should be read in conjunction with our unaudited condensed
consolidated financial statements as of and for the three months ended March 31,
2021 and 2020 and related notes included in Part 1, Item 1 of this Quarterly
Report on Form 10-Q. The following discussion and analysis should also be read
together with our audited consolidated financial statements and related notes
for the year ended December 31, 2020.
Forward-Looking Statements
This discussion and analysis contains forward-looking statements about our plans
and expectations of what may happen in the future. Forward-looking statements
are based on a number of assumptions and estimates that are inherently subject
to significant risks and uncertainties, and our actual results could differ
materially from the results anticipated by our forward-looking statements. Our
future results and financial condition may also differ materially from those
that we currently anticipate as a result of the factors described in the
sections entitled "Risk Factors" in the filings that we make with the U.S.
Securities and Exchange Commission (the "SEC"). Throughout this section, unless
otherwise noted, "we," "us," "our" and the "Company" refer to iSun, Inc.
Business Introduction / Overview
iSun, Inc., the principal office of which is located in Williston, Vermont, is
one of the largest commercial solar engineering, procurement and construction
("EPC") companies in the country and is expanding across the Northeastern United
States ("U.S."). The Company is a second-generation business founded under the
name Peck Electric Co. ("Peck Electric") in 1972 as a traditional electrical
contractor. The Company's core values are to align people, purpose, and
profitability, and since taking leadership in 1994, Jeffrey Peck, the Company's
Chief Executive Officer, has applied such core values to expand into the solar
industry. Today, the Company is guided by the mission to facilitate the
reduction of carbon emissions through the expansion of clean, renewable energy
and we believe that leveraging such core values to deploy resources toward
profitable business is the only sustainable strategy to achieve these
objectives.
The world recognizes the need to transition to a reliable, renewable energy grid
in the next 50 years. Vermont and Hawaii are leading the way in the U.S. with
renewable energy goals of 75% by 2032 and 100% by 2045, respectively. California
committed to 100% carbon-free energy by 2045. The majority of the other states
in the U.S. also have renewable energy goals regardless of current Federal solar
policy. We are a member of Renewable Energy Vermont, an organization that
advocates for clean, practical and renewable solar energy. The Company intends
to use near-term incentives to take advantage of long-term, sustainable energy
transformation with a commitment to the environment and to its shareholders. Our
triple bottom line, which is geared towards people, environment, and profit, has
always been our guide since we began installing renewable energy and we intend
that it remain our guide over the next 50 years as we construct our energy
future.
After installing more than 200 megawatts of solar energy, we believe that we are
well-positioned for what we believe to be the coming transformation to an all
renewable energy economy. As a result of the completion of our business
combination transaction with Jensyn Acquisition Corp. ("Jensyn") on June 20,
2019, pursuant to which we acquired Peck Electric Co. (the "Reverse Merger and
Recapitalization"), we have now opened our company to the public market as part
of our strategic growth plan. We are expanding across the Northeastern U.S. to
serve the fast-growing demand for clean renewable energy. We are open to
partnering with others to accelerate our growth process, and we are expanding
our portfolio of company-owned solar arrays to establish recurring revenue
streams for many years to come. We have established a leading presence in the
market after five decades of successfully serving our customers, and we are now
ready for new opportunities and the next five decades of success.
We have a three-pronged growth strategy that includes (1) organic expansion
across the Northeastern United States, (2) conducting accretive merger and
acquisition transactions to expand geographically, and (3) investing into
company-owned solar assets.
On January 19, 2021, we entered in an agreement to acquire iSun Energy LLC based
in Burlington, Vermont. iSun Energy, LLC offers a portfolio of products that
supports the growing electric vehicle market, specifically carports, charging
stations and user-facing technology. The flagship iSun Energy & Mobility Hub is
the result of 30 years of passion, dedication, and innovation through
sustainability. The iSun solar EV carport charging systems incorporate solar
panels to charge electric vehicles while providing unparalleled software
insights into data surrounding the energy produced, consumed, air quality
effects and other key metrics. The iSun Oasis Smart Solar Bench is expected to
be an integral part in developing smart cities and campuses and has the ability
to charge any mobile device through integrated solar panels that collect and
store energy throughout the day. iSun's accompanying data platform allows for
monitoring and analysis of key metrics through built in IoT (Internet of Things)
sensors. The platform also affords both physical and digital advertising and
branding, for additional recurring revenue opportunities. iSun's Augmented
Reality 3D software platform helps clients visualize their projects before they
are built, making it easy for our clients.
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to adopt sustainable solutions and to understand their impact on sustainability.
As we continue to execute on our three-pronged growth strategy, the iSun Energy,
LLC acquisition allows to further enable the transition to renewable and clean
energy. As our portfolio of offerings continues to expand, we are able to
further provide energy as a service to the marketplace.
With the filing of our Form S-3 Registration Statement on December 4, 2020, we
have the ability to access the capital markets up to $50,000,000 in aggregate to
support our statement growth strategy. The access to capital accelerates our
growth process and allows us to continue our expansion plans into new
territories, aggressively pursue accretive merger and acquisition transactions
and continue investing in our company-owned solar assets which now consist of
the product offerings of iSun Energy LLC. There is currently approximately $39.5
million in gross proceeds that may be available to the Company in connection
with the potential sale of shares of Common Stock under the Registration
Statement as we raised approximately $10.5 million through our Registered Direct
Offering.
On April 24, 2020, we were fortunate to obtain a loan under the CARES Act
Payroll Protection Program ("PPP") of $1,487,624. The loan allowed us to
maintain our workforce during the shutdown caused by the COVID-19 pandemic. On
December 1, 2020, the Company received notification from NBT Bank that the Small
Business Administration has approved the forgiveness of the PPP loan in its
entirety and as such, the full $1,496,468 has been recognized in the income
statement as a gain upon debt extinguishment for the year ended December 31,
2020.
Equity and Ownership Structure
On June 20, 2019, Jensyn consummated the Reverse Merger and Recapitalization,
which resulted in the acquisition of 100% of the issued and outstanding equity
securities of Peck Electric by Jensyn, and in Peck Electric becoming a
wholly-owned subsidiary of Jensyn. Jensyn was originally incorporated as a
special purpose acquisition company, formed for the purpose of entering into a
merger, share exchange, asset acquisition, stock purchase, recapitalization,
reorganization or other similar Recapitalization. Simultaneously with the
Reverse Merger and Recapitalization, we changed our name to "The Peck Company
Holdings, Inc." Until the acquisition of iSun Energy, LLC in January 2021, we
conducted all of our business operations exclusively through our wholly-owned
subsidiary, Peck Electric Co. In addition, we formed iSun Utility, LLC in April
2021.
Unless the context otherwise requires, "we," "us," "our" and the "Company"
refers to iSun, Inc. (formerly The Peck Company Holdings, Inc.) and its
subsidiaries after June 20, 2019, and "Peck Electric" refers to the business of
Peck Electric before June 20, 2019. Upon closing of the Reverse Merger and
Recapitalization, Peck Electric was deemed the accounting acquirer and takes
over the historical information for the Company.
Effective January 19, 2021, the Company changed its corporate name from The Peck
Company Holdings, Inc. to iSun, Inc. (the "Name Change"). The Name Change was
effected through a parent/subsidiary short-form merger of iSun, Inc., our wholly
owned Delaware subsidiary formed solely for the purpose of the name change, with
and into us. We were the surviving entity. To effectuate the short-form merger,
we filed a Certificate of Merger with the Secretary of State of the State of
Delaware on January 19, 2021. The merger became effective on January 19, 2021
with the State of Delaware and, for purposes of the quotation of our Common
Stock on the Nasdaq Capital Market ("Nasdaq"), effective at the open of the
market on January 20, 2021. We conduct all of our business operations
exclusively through our wholly-owned subsidiaries, Peck Electric, iSun Energy
LLC and iSun Utility, LLC.
Critical Accounting Policies
The following discussion and analysis of the Company's financial condition and
results of operations are based upon the Company's financial statements, which
have been prepared in accordance with accounting principles generally accepted
in the United States of America ("GAAP"). The preparation of these financial
statements requires the Company to make estimates and judgments that affect the
reported amounts of assets, liabilities, revenues and expenses, and related
disclosures of contingent assets and liabilities.
Use of Estimates
The preparation of financial statements in conformity with GAAP requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities, disclosure of contingent assets and liabilities at the
date of the financial statements, and the reported amounts of revenues and
expenses during the reporting period. Significant estimates include estimates
used to review the Company's impairments and estimations of long-lived assets,
impairment on investment, goodwill, intangibles, revenue recognition utilizing a
cost to cost method, allowances for uncollectible accounts, and the valuation
allowance on deferred tax assets. The Company bases its estimates on historical
experience and on various other assumptions that are believed to be reasonable
in the circumstances, the results of which form the basis for making judgments
about the carrying values of assets and liabilities that are not readily
apparent from other sources. Actual results may differ from these estimates
under different assumptions or conditions.
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Revenue Recognition
We recognize revenue from contracts with customers under Accounting Standards
Codification ("ASC") Topic 606 ("Topic 606"). Under Topic 606, revenue is
recognized when, or as, control of promised goods and services is transferred to
customers, and the amount of revenue recognized reflects the consideration to
which an entity expects to be entitled in exchange for the goods and services
transferred. We primarily recognize revenue over time utilizing the cost-to-cost
measure of progress on contracts for specific projects and for certain master
service and other service agreements.
Contracts. We derive revenue primarily from construction projects performed
under: (i) master and other service agreements, which are typically priced using
either a time and materials or a fixed price per unit basis; and (ii) contracts
for specific projects requiring the construction and installation of an entire
infrastructure system or specified units within an infrastructure system, which
are subject to multiple pricing options, including fixed price, unit price, time
and materials, or cost plus a markup.
The total contract transaction price and cost estimation processes used for
recognizing revenue over time under the cost-to-cost method is based on the
professional knowledge and experience of our project managers, engineers and
financial professionals. Management reviews estimates of total contract
transaction price and total project costs on an ongoing basis. Changes in job
performance, job conditions and management's assessment of expected variable
consideration are factors that influence estimates of the total contract
transaction price, total costs to complete those contracts and our profit
recognition. Changes in these factors could result in revisions to revenue in
the period in which the revisions are determined, which could materially affect
our consolidated results of operations for that period. Provisions for losses on
uncompleted contracts are recorded in the period in which such losses are
determined. For the three months ended March 31, 2021 and 2020, project profit
was affected by less than 5% as a result of changes in contract estimates
included in projects that were in process as of March 31, 2021 and 2020.
Performance Obligations. A performance obligation is a contractual promise to
transfer a distinct good or service to a customer and is the unit of account
under Topic 606. The transaction price of a contract is allocated to each
distinct performance obligation and recognized as revenue when or as the
performance obligation is satisfied. Our contracts often require significant
services to integrate complex activities and equipment into a single deliverable
and are therefore generally accounted for as a single performance obligation,
even when delivering multiple distinct services. Contract amendments and change
orders, which are generally not distinct from the existing contract, are
typically accounted for as a modification of the existing contract and
performance obligation. The vast majority of our performance obligations are
completed within one year.
When more than one contract is entered into with a customer on or close to the
same date, management evaluates whether those contracts should be combined and
accounted for as a single contract as well as whether those contracts should be
accounted for as one, or more than one, performance obligation. This evaluation
requires significant judgment and is based on the facts and circumstances of the
various contracts.
Union Labor
The Company uses union labor in order to construct and maintain the solar,
electric and data work that comprise the core activities of its business. As
such, contributions were made by the Company to the National Joint
Apprenticeship and Training Committee, the National Electrical Benefit Funds,
Union Pension Plans and a union Health and Welfare Fund. Each employee
contributes monthly to the International Brotherhood of Electrical Workers
("IBEW"). The Company's contract with the IBEW expires May 31, 2022.
The Company's management believes that access to unionized labor provides a
unique advantage for growth, because workforce resources can be scaled
efficiently utilizing labor unions in other states to meet specific project
needs in other states without substantially increasing fixed costs for the
Company.
Business Insurance / Captive Insurance Group
In 2018, Peck Electric joined a captive insurance group. The Company's
management believes that belonging to a captive insurance group will stabilize
business insurance expenses and will lock in lower rates that are not subject to
change from year-to-year and instead are based on the Company's favorable
experience modification rate.
Warrant Liability
On April 12, 2021, the staff of the SEC issue a public statement regarding the
treatment of accounting for public and private warrants issued by SPAC
companies, stating that these warrants should be accounted for as liabilities as
opposed to equity. Since our acquisitions by Jensyn Acquisition Corp in 2019, we
were accounting for our warrants as equity and therefore had to restate our
financials for prior periods. The restatement has no effect on our cash balances
or adjusted EBITDA. As of the May 24, 2021, we have no public warrants
outstanding as all public warrants have been exercised or redeemed.
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Stock-Based Compensation
We periodically issue stock grants and stock options to employees and directors.
We account for stock option grants issued and vesting to employees based on the
authoritative guidance provided by the Financial Accounting Standards Board
(FASB) whereas the value of the award is measured on the date of grant and
recognized over the vesting period.
We account for stock grants issued to non-employees in accordance with the
authoritative guidance of the FASB whereas the value of the stock compensation
is based upon the measurement date as determined at either a) the date at which
a performance commitment is reached, or b) at the date at which the necessary
performance to earn the equity instruments is complete. Non-employee stock-based
compensation charges generally are amortized over the vesting period on a
straight-line basis. In certain circumstances where there are no future
performance requirements by the non-employee, option grants are immediately
vested and the total stock-based compensation charge is recorded in the period
of the measurement date.
Revenue Drivers
The Company's business includes the design and construction of solar arrays for
its customers. Revenue is recognized for each construction project on a
percentage of completion basis. From time to time, the Company constructs solar
arrays for its own account or purchases a solar array that must still be
constructed. In these instances, no revenue is recognized for the construction
of the solar array. In instances where the Company owns the solar array, revenue
is recognized for the sale of the electricity generated to third parties. As a
result, depending on whether it is building for others or for its own account,
the Company's revenue is subject to significant variation.
RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2021 COMPARED TO THE
THREE MONTHS ENDED MARCH 31, 2020
REVENUE AND COST OF EARNED REVENUE
For the three months ended March 31, 2021, our revenue increased 82.2% to $7.3
million compared to $4.0 million for the three months ended March 31, 2020. Cost
of earned revenue for the three months ended March 31, 2021, was 94.7% higher at
$7.1 million compared to $3.7 million for the three months ended March 31, 2020.
Our revenue increased in comparison to prior year with projects executed in new
geographic regions that started construction in 2020 with completion in the
first quarter of 2021. The first quarter of 2020 was lower than anticipated due
to the impact of the COVID-19 pandemic.
Gross profit was $0.1 million for the three months ended March 31, 2021. This
compares to $0.3 million of gross profit for the three months ended March 31,
2020. The gross margin was 1.6% in the three months ended March 31, 2021
compared to 7.9% in the three months ended March 31, 2020. The gross margin in
the first quarter was impacted by a significant material issue on one of our out
of state projects. Material that did not meet the design requirements of the
solar array were delivered directly to the job site. Our quality control team
identified the issue at inspection and notified our procurement group. Our
procurement team was able to find replacement material that did not require a
change to the design but did require material modification on previously
installed equipment which resulted in additional material handling expenses,
material modification expenses and labor expense. Due to the nature of the
material issue, we were required to make the necessary changes without
additional revenue to offset the unplanned expenses. In addition, we had several
job site shutdowns impact varying projects due to the COVID-19 pandemic. As our
project deadlines were unchanged, we often were required to deploy overhead to
meet previously agreed timelines which impacted the margin performance in the
first quarter of 2021.
For 2021, we anticipate an increase in revenue over 2020 due to several factors.
The sum of our backlog projects are already near $81 million and are anticipated
to be completed within twelve to eighteen months. We are not typically bidding
competitively for projects, but instead engage with our customers over a
long-term basis to develop project designs and to help customers reduce project
costs. Therefore, the $81 million in project-based revenue anticipated for the
next twelve to eighteen months represents projects that have a high probability
for conversion. Historically, we have been awarded over 90% of the projects we
have reviewed for construction. The upfront assistance and coordination with our
clients can be considered our marketing effort, which is a significant advantage
for converting a high percentage of its pipeline projects.
In addition, we are engaging existing customers and new partners outside of
Vermont as part of our planned 2021 expansion across the Northeast and
additional strategic geographical areas. Our current project backlog includes
projects in Vermont, Connecticut, Massachusetts, Maine, New Hampshire, and
Tennessee.
SELLING AND MARKETING EXPENSES
We rely on referrals from customers and on its industry reputation, and
therefore have not historically incurred significant selling and marketing
expenses.
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GENERAL AND ADMINISTRATIVE EXPENSES
Total general and administrative ("G&A") expenses were $1.4 million for the
three months ended March 31, 2021, compared to $0.6 million for the three months
ended March 31, 2020. As a percentage of revenue, G&A expenses decreased to
20.2% in the three months ended March 31, 2021 compared to 21.3% in the three
months ended March 31, 2020. In total dollars, G&A expense increased primarily
due to the added personal costs required to support the Company's growth
initiatives compared to the three months ended March 31, 2020. In January 2021,
we acquired iSun Energy LLC which resulted in an increase in G&A. The iSun
Energy LLC acquisition is intended to be accretive, however there was no revenue
recognized as part of the acquisition during the first quarter of 2021. In
addition, we executed a registered direct offering, exercised a call of our
public warrants and began the process of holding our 2020 and 2021 Annual
Meetings which added significant professional fees and legal expense for the
three months ending March 31, 2021.
WAREHOUSE AND OTHER OPERATING EXPENSES
Warehousing and other operating expenses for 2021 are expected to be stable or
decrease compared to prior years as we continue to look for opportunities to
streamline our operations and decrease our cost structure. To date, we have
reduced certain administrative and insurance costs and restructured our
utilization of skilled labor in order to reduce the overhead burden, without
compromising the ability to operate effectively.
STOCK-BASED COMPENSATION EXPENSES
During the three months ended March 31, 2021 we incurred $1.1 million in total
non-cash stock-based compensation expense compared to $0 for the same period in
the prior year.
We entered into a restricted stock grant agreement with our Chief Executive
Officer Jeffrey Peck, Chief Financial Officer John Sullivan, Chief Operating
Officer Fredrick Myrick, and Chief Strategy Officer Michael dAmato in January
2021 (the January 2021 RSGA). All shares issuable under the January 2021 RSGA
are valued as of the grant date at $6.15 per share. For the three months ended
March 31, 2021 and 2020, stock-based compensation expense of $0.6 million and
$0, respectively, was recognized for the January 2021 RSGA.
Stock-based compensation, excluding the January 2021 RSGA, related to employee
and director options totaled $0.5 and $0 for the three months ended March 31,
2021 and 2020, respectively.
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OTHER INCOME (EXPENSES)
Interest expense for the three months ended March 31, 2021, was $36,493 compared
to $80,766 for the same period of the prior year as a result of decreased
utilization of our line of credit.
INCOME (BENEFIT)TAX EXPENSE
The US GAAP effective tax rate for the three months ended March 31, 2021 was
9.6% and March 31, 2020 was 24.8%. The proforma effective tax rate for the three
months March 31, 2021 was 27.72% and March 31, 2020 was 27.72%. Please see the
rate reconciliation in FN 12 for an explanation of the effective tax rate.
NET LOSS
The net loss for the three months ended March 31, 2021 was $3.1 million compared
to a net loss of $0.4 million for the three months March 31, 2020.
Certain Non-GAAP Measures
We periodically review the following key non-GAAP measures to evaluate our
business and trends, measure our performance, prepare financial projections and
make strategic decisions.
EBITDA and Adjusted EBITDA
Included in this presentation are discussions and reconciliations of earnings
before interest, income tax and depreciation and amortization ("EBITDA") and
EBITDA adjusted for certain non-cash, non-recurring or non-core expenses
("Adjusted EBITDA") to net loss in accordance with GAAP. Adjusted EBITDA
excludes certain non-cash and other expenses, certain legal services costs,
professional and consulting fees and expenses, and one-time Reverse Merger and
Recapitalization expenses and certain adjustments. We believe that these
non-GAAP measures illustrate the underlying financial and business trends
relating to our results of operations and comparability between current and
prior periods. We also use these non-GAAP measures to establish and monitor
operational goals.
These non-GAAP measures are not in accordance with, or an alternative to, GAAP
and should be considered in addition to, and not as a substitute or superior to,
the other measures of financial performance prepared in accordance with GAAP.
Using only the non-GAAP financial measures, particularly Adjusted EBITDA, to
analyze our performance would have material limitations because such
calculations are based on a subjective determination regarding the nature and
classification of events and circumstances that investors may find significant.
We compensate for these limitations by presenting both the GAAP and non-GAAP
measures of our operating results. Although other companies may report measures
entitled "Adjusted EBITDA" or similar in nature, numerous methods may exist for
calculating a company's Adjusted EBITDA or similar measures. As a result, the
methods that we use to calculate Adjusted EBITDA may differ from the methods
used by other companies to calculate their non-GAAP measures.
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The reconciliations of EBITDA and Adjusted EBITDA to net loss, the most directly
comparable financial measure calculated and presented in accordance with GAAP,
are shown in the table below:
Three months ended
March 31,
2020
2021 (restated)
Net loss $ (3,113,333 ) $ (790,237 )
Depreciation and amortization 135,825 155,012
Interest expense 36,493 80,766
Change in fair value of warrant liability 261,968 357,605
Stock based compensation
1,070,908 -
Income tax (benefit) 214,321 (142,311 )
EBITDA (1,393,818 ) (339,165 )
Weighted Average shares outstanding 7,695,279 5,298,159
Adjusted EPS (0.18 ) (0.06 )
LIQUIDITY AND CAPITAL RESOURCES
We had $20.2 million in unrestricted cash at March 31, 2021, as compared to $0.7
million at December 31, 2020.
As of March 31, 2021, our working capital surplus was $22.5 million compared to
a working capital surplus of $0.25 million at December 31, 2020. On January 8,
2021, we entered into a Securities Purchase Agreement with two institutional
investors providing for the issuance and sale by the Company of an aggregate
840,000 shares of our Common Stock in a registered direct offering at a purchase
price of $12.50 per Share for gross proceeds of approximately $10.5 million
before deducting fees and offering expenses.
We believe that the aggregate of our existing cash and cash equivalents,
including our working capital line of credit, shelf registration and equity line
of capital, will be sufficient to meet our operating cash requirements until at
least June 30, 2022.
As of May 14, 2021, we have approximately $21 million in cash availability.
During the first quarter of 2021, we received cash proceeds of approximately
$17.4 million from the exercise of our Public Warrants and an additional
approximately $9.6 million from the registered direct offering. The available
funds will support the execution of our approximate $81 million in backlog. We
believe the backlog is executable within the next twelve to eighteen months
which would support our transition back to profitability in 2021.
With the filing of our Form S-3 Registration Statement on December 4, 2020, we
have the ability to access the capital markets up to $50,000,000 in aggregate to
support our statement growth strategy. The access to capital accelerates our
growth process and allows us to continue our expansion plans into new
territories, aggressively pursue accretive merger and acquisition transactions
and continue investing in our company-owned solar assets which now consist of
the product offerings of iSun Energy LLC. There is currently approximately $39.5
million available under the Registration Statement as we drew down approximately
$10.5 million through our Registered Direct Offering.
Under the terms of the equity line of credit entered into on September 26, 2019,
Lincoln Park Capital is required to purchase shares up to a total value of
$15,000,000 pursuant to certain terms and conditions. As of December 31, 2020,
$15,000,000 of the equity line of credit is available for use. We can require
the purchase of 50,000 shares of Common Stock under a regular purchase. On the
next day following a regular purchase, we can require the purchase of an
accelerated purchase equal to 200% of the shares sold in the regular purchase as
well as an additional accelerated purchase equal to 300% of the shares sold in
the regular purchase. The total number of shares authorized under the Purchase
Agreement total 3,024,194 which would allow us to maximize the equity line of
credit within 10 business days. At that moment, we have no plans to utilize our
equity line of credit, but we do have the capability to raise capital utilizing
this at-the-market offering and receive the cash proceeds from the transaction
to fund our operating activities.
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Cash flow used in operating activities was $5.4 million for the three months
ended March 31, 2021, compared to $0.4 of cash provided by operating activities
in the three months ended March 31, 2020. The decrease in cash provided by
operating activities was primarily the result of the increase in accounts
receivable of $1.2 million, inventory of $1.5 million, and costs in excess of
earnings of $1.2 million.
Net cash used in investing activities was $2.8 million for the three months
ended March 31, 2021, compared to $0.1 million used in the three months ended
March 31, 2020. This increase was related to the minority investments in Gemini
Electric Mobility Co. and NAD Grid Corp. d/b/a AmpUp.
Net cash provided by financing activities was $27.7 million for the three months
ended March 31, 2021 compared to $0.2 million of cash provided by financing
activities for the three months ended March 31, 2020. The cash flow provided by
financing activities consisted of $1.2 million of borrowings from the line of
credit, $17.4 million from warrants exercised and $9.6 million from a registered
direct offering.
Off-Balance Sheet Arrangements
The Company does not have any off-balance sheet arrangements that are reasonably
likely to have a current or future effect on its financial condition, revenues,
results of operations, liquidity, or capital expenditures.
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