reported in our second quarter Form 6-K, filed with the SEC on September
3, 2024, due to incorrect valuation methodology and assumptions used on
the ratio of warrants to number of shares. The revised gain on
extinguishment of debt should be $35.3 million instead of the previously
reported $77.3 million. In addition, $24.8 million of warrants were
erroneously classified as equity that should have been classified as
liabilities, as the fixed-for-fixed criteria was not met until the three
months ended September 29, 2024.Consequently, interest expense, net
should be $14.1 million instead of $10.1 million as reported previously.
Total effect on net loss attributable to the stockholders is $45.9
million.
MAXEON SOLAR TECHNOLOGIES, LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(In thousands)
Nine Months Ended
-----------------------------------------------------
September 29, 2024 October 1, 2023
------------------------------ ---------------------
Cash flows from operating
activities
Net loss $ (508,744) $ (89,418)
Adjustments to reconcile net
loss to operating cash
flows
Depreciation and
amortization 37,162 43,579
Stock-based compensation 18,003 17,145
Non-cash interest expense 7,850 7,042
Gain on disposal of equity
in unconsolidated
investees (24,083) --
Equity in losses of
unconsolidated investees -- 2,811
Deferred income taxes 17,710 (472)
Loss on impairment of
property, plant and
equipment 157,673 442
Loss on impairment of
operating lease right of
use assets 7,432 --
Loss on impairment of
intangible assets 2,167 --
Loss on impairment of
goodwill 7,879 --
Loss on disposal of
property, plant and
equipment 260 33
Write-off of other assets 21,401 --
Gain on debt extinguishment (35,326) --
Remeasurement loss on
prepaid forward 16,082 8,570
Remeasurement loss on
warrants 4,966 --
Provision for (reversal of)
expected credit losses 11,504 (208)
Provision for (utilization
of) inventory reserves 132,474 (1,351)
Other, net 1,807 271
Changes in operating assets
and liabilities
Accounts receivable 35,132 (37,353)
Inventories 23,953 (110,646)
Prepaid expenses and
other assets 1,139 5,498
Operating lease
right-of-use assets 4,347 3,766
Advances to suppliers -- 730
Accounts payable and
other accrued
liabilities (31,913) (52,808)
Contract liabilities (167,670) 27,404
Operating lease
liabilities (4,313) (2,917)
------------------------------ ---------------------
Net cash used in
operating activities (263,108) (177,882)
------------------------------ ---------------------
Cash flows from investing
activities
Purchases of property,
plant and equipment (48,052) (55,796)
Proceeds from disposal of
equity in unconsolidated
investees 24,000 --
Purchases of intangible
assets (10) (136)
Proceeds from maturity of
short-term securities -- 76,000
Purchase of short-term
securities -- (60,000)
Purchase of restricted
short-term marketable
securities -- (10)
Proceeds from maturity of
restricted short-term
marketable securities -- 971
Proceeds from disposal of
property, plant and
equipment 664 --
Proceeds from disposal of
asset held for sale 462 --
Net cash used in
investing activities (22,936) (38,971)
------------------------------ ---------------------
Cash flows from financing
activities
Proceeds from debt 51,249 148,992
Repayment of debt (74,572) (175,942)
Repayment of finance lease
obligations (386) (477)
Net proceeds from issuance
and modification of
convertible notes and
warrants 71,418 --
Net proceeds from issuance
of common stock 97,270 193,531
------------------------------ ---------------------
Net cash provided by
financing activities 144,979 166,104
------------------------------ ---------------------
Effect of exchange rate
changes on cash, cash
equivalents and restricted
cash (94) 124
------------------------------ ---------------------
Net decrease in cash, cash
equivalents and restricted
cash (141,159) (50,625)
Cash, cash equivalents and
restricted cash, beginning
of period 195,511 267,961
------------------------------ ---------------------
Cash, cash equivalents and
restricted cash, end of
period $ 54,352 $ 217,336
------------------------------ ---------------------
Non-cash transactions
Property, plant and
equipment purchases funded
by liabilities $ 5,755 $ 10,158
Interest paid in shares 6,969 --
Interest paid by issuance
of convertible notes 7,977 --
Right-of-use assets
obtained in exchange for
lease obligations 8,025 10,743
The following table reconciles our cash and cash equivalents and restricted cash reported on our Condensed Consolidated Balance Sheets and the cash, cash equivalents and restricted cash reported on our Condensed Consolidated Statements of Cash Flows as of September 29, 2024 and October 1, 2023:
(In thousands) September 29, 2024 October 1, 2023
------------------------------ -----------------------
Cash and cash
equivalents $ 51,223 $ 208,100
Restricted cash,
current portion,
included in
Prepaid expenses
and other current
assets 3,028 9,234
Restricted cash,
net of current
portion, included
in Other long-term
assets 101 2
------------------------------ -----------------------
Total cash, cash
equivalents and
restricted cash
shown in Condensed
Consolidated
Statements of Cash
Flows $ 54,352 $ 217,336
============================== =======================
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SOURCE Maxeon Solar Technologies, Ltd.
/CONTACT: Investor Contact: Vedant Mour, investor@maxeon.com, +1 (626) 884-4756, or Media Contact: Forrest Monroy, forrest.monroy@maxeon.com, +1 (626) 884-4756
(END) Dow Jones Newswires
December 05, 2024 16:48 ET (21:48 GMT)
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