Solar power firm Sunnova Energy International is facing financial difficulties, warning that it may not be able to continue as a “going concern” in a year due to falling demand for its alternative energy products. The company’s shares have lost nearly two-thirds of their value, reaching an all-time low.
Sunnova attributed the decline in sales revenue to a 13% decrease in solar energy system and product sales, mainly due to decreases in inventory sales revenue. Operating expenses rose by 12%, despite efforts to address financial conditions, including raising prices and simplifying its business to reduce costs.
The company has signed a three-year term loan agreement worth $185 million, which it will pay 15% in interest per year. Despite this move, Sunnova still faces significant financial challenges, with substantial doubt existing regarding its ability to continue as a going concern for at least the next year.
Source: https://www.investopedia.com/sunnova-stock-hits-all-time-low-on-going-concern-warning-11689465