Solar Integrated Roofing Corp. Issues Letter to Shareholders from Newly Appointed CEO Brad Rinehart

HENDERSON, Nev., May 19, 2023 (GLOBE NEWSWIRE) -- Solar Integrated Roofing Corp. (OTC:SIRC) (“SIRC” or the Company”), an integrated, single-source solutions provider of solar power, roofing and EV charging systems, today issued the following statement from its newly appointed CEO, Brad Rinehart.

Dear Shareholders,

We have made a significant change to our executive management team. Dave Massey is taking a medical leave of absence and has resigned as CEO and CFO of SIRC as of Monday, May 15, 2023. In tandem with his resignation, our Board of Directors has appointment me as CEO, Wanda Witoslawski as CFO, and Troy Clymer as President and COO of SIRC. All three of us have also been appointed as members of the Board of Directors, of which Dave will remain a member. The changes will allow our C-suite to move the improved operational costs into other areas of the company and allow us to focus our limited cash resources on internal sales and operational improvements.

As CEO, I will not hold any Q&A sessions for the next 90 days, unless there is a material change that needs to be addressed. External communications will be well-controlled through our official SIRC media outlets and via our investor relations firm, MZ Group. My efforts and the team’s efforts will be focused on running the company and increasing shareholder value through good old-fashioned hard work.

I am sure that our shareholders were as disappointed with our Q1 financial results as were the management team here at SIRC. We experienced several headwinds in the quarter. Weather, which is usually reliable in SoCal, was much wetter than normal, affecting our roofing and solar divisions. NEM 3.0 also had what we are predicting is a short-term negative impact on residential solar sales. We ran into supply chain issues on one of our primary branded solar panels and had other supply challenges. We also had to reverse some cancelled residential solar sales, and we are working to rebuild the company culture after SG&A consolidation and restructuring. These factors all negatively impacted our operating performance during the first quarter.

The uncertainty encompassing the capital markets has caused a delaying effect on our commercial projects as higher interest rates change the economics on many projects and the banking industry reacts to the recent bank failures. All previously announced projects are still active, and we are working diligently to move them forward. Short-term debt servicing and litigation costs also had a dramatically negative effect on our cash flow, which has limited our ability to deploy capital into the commercial development projects we have in the queue. Rest assured that Troy, Wanda, me, and our leadership are working hard to resolve through these challenges.