Pineapple Energy Inc., a Minnesota-based company specializing in telephone and telegraph apparatus manufacturing, reported on Monday that its 2024 Annual Meeting of Shareholders was adjourned due to insufficient shareholder attendance to establish a quorum. The meeting, which took place on Monday, July 1, 2024, saw participation from approximately 45.6% of the eligible shares, falling short of the majority required.
The company, which trades on the Nasdaq Stock Market under the ticker PEGY, had 108,546,773 shares of common stock eligible to vote. However, only 49,447,703 shares were represented at the meeting, either in person or by proxy. Pineapple Energy's bylaws stipulate that a quorum for the shareholder meeting is achieved with the presence of a majority of the outstanding shares entitled to vote, equating to 54,273,387 shares of common stock.
The lack of a quorum prevented any resolutions or company matters from being addressed or voted upon. The rescheduled meeting date will give shareholders an additional opportunity to participate and cast their votes on matters that were to be discussed during the original meeting.
This event comes as Pineapple Energy continues to operate under the interim leadership of CEO Scott Maskin. The company, previously known as Communications Systems (NASDAQ:PEGY) Inc., underwent a name change from Pineapple Holdings, Inc. to Pineapple Energy Inc. on March 28, 2022.
In other recent news, Pineapple Energy has announced a fifteen-for-one reverse stock split, which resulted in a significant change in its stock structure. This move, effective June 12, 2024, combined every 15 shares of issued and outstanding common stock into one share. The company's Q1 2024 results also revealed a decrease in both revenue and gross profit compared to the same period last year, but an increase in net income from continuing operations by 146%, totaling $1.2 million.
In addition to these financial changes, Pineapple Energy has been pursuing growth strategies, including the acquisition of local and regional rooftop solar companies. The company is also fundraising to support its capital needs for the remainder of the year, with cash and equivalents totaling $3.3 million. Despite a decline in residential kilowatts installed and delays in commercial pipeline projects, Pineapple Energy remains optimistic due to the strong demand for solar and battery storage.
These recent developments reflect Pineapple Energy's commitment to achieving profitability in the upcoming quarters, starting in Q2 2024. However, the company acknowledged the need to improve its marketing strategies and customer incentives, particularly in Long Island. These updates provide investors with a snapshot of Pineapple Energy's recent financial performance and strategic initiatives.
InvestingPro Insights
As Pineapple Energy Inc. navigates the challenges of insufficient shareholder attendance, the company's financial metrics and market behavior provide additional context for investors. According to InvestingPro data, Pineapple Energy has a very small market capitalization of just 9.56M USD, indicating it is a micro-cap stock which often comes with higher risk and volatility. This is reflected in the significant 52.28% drop in the 1 Month Price Total Return as of mid-2024, underscoring the stock's high volatility that InvestingPro Tips also highlight.
Furthermore, the company's revenue growth over the last twelve months as of Q1 2024 stood at a robust 43.42%, suggesting some operational momentum despite the recent market performance. However, the company's operating income margin was negative at -10.35%, aligning with the InvestingPro Tip that analysts do not expect the company to be profitable this year.
For investors considering this stock, the high volatility and current financial position highlighted by these metrics should be taken into account. To delve deeper into Pineapple Energy's financial health and stock performance, additional InvestingPro Tips are available, offering a comprehensive analysis for informed decision-making. Interested readers can access these insights and benefit from a special offer by using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. There are 14 additional InvestingPro Tips available for Pineapple Energy, which can be found at https://www.investing.com/pro/PEGY.
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