P2 Solar Reports 84% Revenue Decline and Strategic Acquisition in Fiscal Year Ending March 31, 2025

P2 Solar, Inc. reported a significant decline in financial performance for the fiscal year ending March 31, 2025, with revenues dropping to $26,382 from $166,288 in the previous year, marking an 84% decrease. The company's cost of goods sold also fell sharply to $4,379 from $99,313, resulting in a gross profit of $22,003, down from $66,975. Despite the drop in revenue, the company managed to reduce its operating expenses by 31% to $125,329, leading to a smaller loss from operations of $103,326 compared to $114,941 in the prior year. The net loss for the year was $34,492, a notable improvement from the previous year's loss of $148,426.

The company underwent significant strategic changes during the fiscal year, including the acquisition of Futricity Solar, Inc. on February 22, 2023. This acquisition allowed P2 Solar to expand its operations into the installation of rooftop solar systems, which contributed to its sales figures. As of March 31, 2025, Futricity had $18,000 CAD worth of orders for solar installations, and the company completed 112 KW of installations during the year. The acquisition also introduced a contingent consideration liability, which requires P2 Solar to pay 25% of Futricity's future operating income over the next five years.

Operationally, P2 Solar's customer base remains concentrated in British Columbia, where it has focused its solar installation efforts. The company has not yet expanded its operations beyond this region but plans to do so in the coming years. As of March 31, 2025, P2 Solar had no full-time employees, relying instead on subcontractors for installation work. The company’s total current liabilities decreased to $1,039,119 from $1,866,782, primarily due to a reduction in promissory notes and convertible notes payable.

Looking ahead, P2 Solar faces challenges related to its financial stability, as it reported an accumulated deficit of $8,144,781. The company has indicated that it will need to raise approximately $5,000 per month to cover ongoing expenses and an estimated $2 million for expansion efforts. Management is exploring various financing options, including the issuance of convertible preferred shares, but acknowledges that there is no guarantee of success in securing additional capital. The company’s ability to continue as a going concern remains uncertain, contingent on its capacity to generate sufficient revenue and secure necessary funding.