P2 Solar Reports 83% Revenue Decline and Increased Net Loss in Latest Filing

P2 Solar, Inc. reported significant financial challenges in its latest 10-Q filing for the nine months ending December 31, 2024. The company generated revenue of $26,659, a stark decline of 83% compared to $154,234 in the same period of the previous year. The gross profit also fell to $22,235 from $62,848, reflecting a decrease of 65%. The net loss for the nine months was $146,008, up from a loss of $101,956 in the prior year, indicating a 43% increase in losses. The company attributed these declines primarily to reduced sales from its solar installation services, which began generating revenue following the acquisition of Futricity Solar, Inc. in February 2023.

In terms of operational metrics, P2 Solar's total current assets decreased by 51% to $12,020 as of December 31, 2024, down from $24,358 at the end of the previous fiscal year. This decline was largely due to a significant drop in accounts receivable, which fell to $47 from $11,855. Current liabilities increased slightly to $1,891,290, resulting in a working capital deficiency of $1,879,271. The company continues to rely heavily on financing from related parties, with total amounts due to related parties rising to $775,624.

Strategically, P2 Solar's acquisition of Futricity Solar has been a focal point of its operations. The acquisition, which was completed in February 2023, has positioned the company to expand its solar installation services. However, the financial performance post-acquisition has not met expectations, leading to increased scrutiny of the company's operational efficiency and cost management. The company reported a decrease in operating expenses to $96,346 for the nine months ended December 31, 2024, down from $158,071 in the previous year, primarily due to reduced professional fees and subcontractor costs.

Looking ahead, P2 Solar faces substantial challenges in maintaining its operations. The company has expressed concerns about its ability to continue as a going concern, citing an accumulated deficit of $8,256,297. Management is actively seeking additional capital to support ongoing operations and expansion plans, estimating that approximately $2 million will be needed for growth initiatives. The company has also recently had its cease trade order fully revoked, which may provide opportunities for future financing. However, there are no guarantees that the necessary funds will be secured, and the company may need to consider further operational reductions or asset liquidations if it cannot raise additional capital.