SolarMax Technology (NASDAQ:SMXT), a leading integrated solar energy company, today disclosed its financial results for the first quarter ended March 31, 2024, revealing a challenging financial performance.

The company reported revenues of $5.8 million, a significant decline from $12.9 million in the same quarter of the previous year.

This decrease was accompanied by a net loss of $19.3 million, compared to a gross profit of $2.1 million in the first quarter of 2023.

The sharp downturn is primarily attributed to substantial one-time stock-based compensation expenses totalling $17.2 million. These expenses were related to the vesting of stock options triggered by the company's initial public offering.

Specifically, cost of revenues for the quarter included a one-time stock-based compensation expense of $1.3 million, resulting in a gross loss of $0.5 million.

Additionally, total operating expenses, significantly impacted by a one-time expense of $15.9 million in stock-based compensation, surged to $18.4 million from $1.5 million in the prior year.

CEO David Hsu elaborated on the challenges faced during the quarter, attributing the stark year-over-year comparisons to the exceptional revenue seen in the first quarter of 2023 due to pre-emptive customer purchases.