Complete Solaria Update

Operational Progress & PE Debt

FREMONT, Calif., April 11, 2024 (GLOBE NEWSWIRE) -- Complete Solaria, Inc. (“Complete Solaria” or the “Company”) (Nasdaq: CSLR) today reported on its current financial status, which includes progress on its cash burn rate, and the status of its debt with private equity firms Kline-Hill Partners and Carlyle, which together hold about $70 million in debt owed on about $35 million of principal, split roughly equally between the two (see our 10K for exact numbers). First, we report on our progress in turning Complete Solaria (CSLR) around financially, starting with our dramatic headcount reduction from 428 to 109 (-74.5%) in seven rounds of layoffs.

These layoffs were very unfortunate, but necessary for survival. And when any company keeps only the top 25% of its employees, it winds up with an excellent workforce. Yesterday, our board approved 2.6 million stock options to retain those employees for the next five years and to reward them for their sacrifices. There has been a concomitant reduction in operating expense from $12,123,000 in Q1’23 (audited) to $5,655,000 this quarter (a company estimate from the 2024 plan¹). With fewer people, we have been able to close down several buildings in California and to move our HQ to Salt Lake City, Utah, a solar center of excellence, where our costs are about 30% lower than those in California. Despite the reduction in workforce, we have seen a notable increase in employee productivity as well as improved business processes, better product quality and a significant increase in NPS score.

T.J. Rodgers, Complete Solaria chairman, commented, “In the conclusion of my November report to shareholders, I said:

‘Our planned future cash need is less than $5 million needed until mid-2024. Obviously, these estimates have high uncertainty in a company with immature business processes in the current chaotic market, but the company has become fundable by existing investors [i.e., me] with acceptable dilution.’

Rodgers continued, “Since that time, I have put $10 more million into CSLR to take my total investment to $68 million. Now, our current annual plan predicts that very little added investment will be needed this year. As of today, my personal breakeven CSLR market price is about $3.50. At a price of $3.50, our two private-equity debt holders would have 19.6 million shares worth $68 million, double their original $35 million investment – 100% profit, if they accepted our debt-equity swap proposal. This is the win-win deal that would make them money, save 109 jobs and clear a path for substantial CSLR equity value growth over time.”