Ozap Energy Solutions Reports Significant Revenue Decline and Financial Challenges for Fiscal Year 2024

Ozop Energy Solutions, Inc. reported a significant decline in financial performance for the fiscal year ending December 31, 2024, with total revenue of $1.34 million, down from $4.76 million in 2023. The decrease in revenue was primarily attributed to a substantial drop in sales from sourced and distributed products, which fell to $1.04 million from $4.54 million the previous year. This decline was influenced by higher interest rates affecting consumer demand for residential solar installations and increased competition leading to lower selling prices. However, the company did see an increase in design and installation revenue, which rose to $300,631 from $215,850, bolstered by larger installation projects.

The company's cost of sales also decreased to $1.19 million in 2024 from $5.37 million in 2023, largely due to a significant reduction in inventory write-downs, which were $134,025 compared to $1.50 million the prior year. Operating expenses were reduced to $3.62 million from $5.64 million, reflecting lower travel expenses and the absence of termination costs that had impacted the previous year’s figures. The net loss attributable to the company narrowed to $6.20 million from $7.37 million, aided by a gain of $271,360 from a litigation settlement.

Strategically, Ozop Energy Solutions has been active in expanding its operational capabilities. The company formed several subsidiaries, including Automated Room Controls, Inc. in June 2024, aimed at developing advanced lighting control systems. Additionally, the company has been involved in various financing agreements, including a significant equity financing agreement with GHS Investments, which has provided up to $10 million in funding. As of December 31, 2024, the company had a total of seven employees, a reduction from previous years, as it continues to streamline operations.

The company’s outlook remains cautious, with substantial doubt raised about its ability to continue as a going concern due to an accumulated deficit of $224.87 million and a working capital deficit of $32.23 million. The company is currently in default on $19.93 million in debt instruments, which adds to the financial strain. Management has indicated that additional capital will be necessary to meet obligations and support business expansion, but there are concerns about the ability to raise such funds in the current market environment.

In summary, Ozop Energy Solutions is navigating a challenging financial landscape marked by declining revenues and significant operational adjustments. The company is focusing on strategic developments and cost management while facing critical liquidity issues that could impact its future viability.