Complete Solaria Update

Operational Progress & PE Debt - Seite 2

Rodgers continued, “Our operations group has reduced our cycle time from 104-133 days in the pre-Nov’23 period to 26-40 days today. Our customers have awarded that effort by raising our Net Promoter Score as shown below. We have also made significant progress in improving our attitude regarding customers.”

Rodgers continued, “Our proposition was compelling for Kline-Hill, always a supportive investor with whom we are in the final stages of negotiation of a debt-equity swap. Not so for Carlyle, which has rejected our equivalent 9.9 million share offer by complaining that they “have not heard back” from us on a day in which they dodged six phone calls and emails. The Carlyle story is long and does not reflect well on them, but we do owe them over $35 million which is delinquent. The problem is that they have used legal tactics to try to force every decision we make in an adverse direction and then use that threat as a club to demand that we divert critical funding to them. They once asked for half of the $10 million I was investing to keep the company alive, and another time demanded $10 million from me personally, or else they “would not go on.” That threat – made less than a week before our debt deal with them expired – caused me to think about life without Carlyle, a possibility completely under my control as long as I was willing to let them wipe out the common shareholders and auction off our net assets (less than $20 million, and hence another bad business decision).

Rodgers continued, “I have been working on CSLR for Carlyle for free for nine months – with no salary or stock options – and my prior Enphase turnaround results (from a share price of $0.92 in April 2017 to a share price of $115 today) are starting to show up, with all CSLR vital signs starting to point in the right direction (we still would have $20 million owed to lawyers and auditors, if successful). However, I’m not willing to work for Carlyle for free anymore – in fact, I’m not willing to work for Carlyle at all – ever again, for reasons I will detail in a separate press release. If they choose to take the equity we offer, I will finish the job I started for all shareholders. If they continue to demand the slavery of covenants, I will resign.