TORONTO and KNOXVILLE, Tenn., May 26, 2022 (GLOBE NEWSWIRE) -- Solar Alliance Energy Inc. (‘Solar Alliance’ or the ‘Company’) (TSX-V: SOLR, OTCQB: SAENF) announces it has filed its unaudited financial results for the three months ended March 31, 2022. The Company’s Financial Statements and related Management’s Discussion and Analysis are available under the Company’s profile at www.sedar.com.
“The Solar Alliance team continues to execute on our growth strategy as we start to build out the large backlog of projects we have developed over previous quarters,” said CEO Myke Clark. “The transition to larger, higher revenue projects is paying dividends as our backlog now exceeds $4,900,000 of contracted projects. Construction on several of these is now underway and we anticipate completing the construction of this current backlog this year. This growing backlog and revenue stream is combined with the portfolio of solar projects we currently own and will operate in New York, generating long term recurring revenue once they are completed later this year. As we build those projects in New York, we continue to pursue larger project pipeline opportunities given the significant long term value we see in owning and operating solar projects,” concluded Clark.
Financial highlights
- Contracted project backlog grew to approximately $4,900,000. The Company expects this current backlog to be constructed in 2022 while the Company continues to add additional backlog through its sales channels.
- Revenue grew to $663,269 for the three months ended March 31, 2022 (Q1, 2021 - $582,223) as the company accelerated its transition to larger, higher revenue solar projects.
- Cost of sales for the period was $531,567, resulting in a gross profit of $131,702 or 20%. This represents strong margin improvement compared to the same period in 2021, with cost of sales of $582,223, resulting in a gross margin of $12,924.
- An operating loss of $693,267 (Q1, 2021 - $553,401) as the Company continued to make investments in its growing team and project portfolio.
- Cash used in operating activities decreased from $1,323,352 in Q1 2021 to $927,620, an improvement of 30%.
Business highlights
- Contract for 1 MW Project with Knoxville Utilities Board Signed – On February 22, 2022, Solar Alliance announced it has signed a contract with Knoxville Utilities Board (“KUB”), an independent agency of the City of Knoxville, for the design and installation of a 1 megawatt (“MW”) solar project in Knoxville, Tennessee. KUB provides electric, natural gas, water, wastewater, and fiber broadband services to more than 473,000 customers in Knoxville. Solar Alliance will design, engineer, and install the 1-MW project, which is scheduled to begin construction in April 2022 and is targeted for completion in August 2022.
- The Company’s strategic relationship with Boyd CAT, a regional Caterpillar dealer and supplier of Cat® solar equipment, has insulated it from the severe supply chain issues being experienced in the solar industry.
- Completed Acquisition of 389-kW Solar Project in New York – On February 2, 2022, Solar Alliance announced completed the acquisition of a 389-kW project in New York State from Abundant Solar Power Inc. The project acquisition, first announced on June 23, 2021, represents the second project Solar Alliance will own and operate under a 25-year power purchase agreement. A total of 687-kW of solar projects are now owned by the Company and will contribute recurring revenue once they achieve commercial operation.
- Contract for 526-kW Project with AESSEAL Signed – On January 27, 2022, Solar Alliance announced it has signed a contract with AESSEAL, a specialist in the design and manufacture of mechanical seals and support systems, for a 526-kW roof mount solar system at AESSEAL’s U.S. headquarters in Rockford, Tennessee. Solar Alliance will design, engineer and install the project, which is scheduled to begin construction in April and is targeted for completion by the end of October 2022.
- Solar Alliance Commenced Trading on OTCQB Market in the United States – On January 24, 2022, Solar Alliance announced that it has qualified for trading on the OTCQB Venture Market in the United States operated by the OTC Markets Group Inc. and the Company’s common shares will commence trading today on the OTCQB under the symbol “SAENF.” The Company’s common shares will continue to trade on the TSX Venture Exchange.
Myke Clark, CEO
For more information: |
Investor Relations Myke Clark, CEO 416-848-7744 mclark@solaralliance.com |
About Solar Alliance Energy Inc. (www.solaralliance.com)
Solar Alliance is an energy solutions provider focused on residential, commercial and industrial solar installations. The Company operates in Tennessee, Kentucky, North/South Carolina and Illinois and has an expanding pipeline of solar projects. Since it was founded in 2003, the Company has developed $1 billion of renewable energy projects that provide enough electricity to power 150,000 homes. Our passion is improving life through ingenuity, simplicity and freedom of choice. Solar Alliance reduces or eliminates customers' vulnerability to rising energy costs, offers an environmentally friendly source of electricity generation, and provides affordable, turnkey clean energy solutions.
Statements in this news release, other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, constitute Forward-looking statements. The words “would”, “will”, “expected” and “estimated” or other similar words and phrases are intended to identify forward-looking information. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, level of activity, performance or achievements to be materially different than those expressed or implied by such forward-looking information. Such factors include but are not limited to: uncertainties related to the ability to raise sufficient capital, changes in economic conditions or financial markets, litigation, legislative or other judicial, regulatory and political competitive developments and technological or operational difficulties. Consequently, actual results may vary materially from those described in the forward-looking statements.
“Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."
