Solar Integrated Roofing Corporation Answers Questions from the SIRC Long Investor Discord Group

HENDERSON, Nev., Dec. 08, 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 CEO Brad Rinehart answers questions from the SIRC Long Investor Discord Group.

Projects

• Do we have any large projects ready to go that just need to be funded?
  • No large-scale projects are being held up for funding alone. Large scale projects are, by their nature, complex with multiple hurdles to overcome. SIRC has been premature in the past in announcing projects and claiming revenue. We continue to work on the large-scale projects we already have in the queue but have also re-focused on projects with more immediate turn times as previously discussed.

• Please give us details on the Callaway situation. Since this was Dave’s contact does that make it less likely? Updated time frames? When did you last speak with Callaway?
  • Dave Massey’s involvement in the Callaway project and his initial contact is not relevant to the long-term viability of this project. The Callaway’s remain committed to securing the property and moving this project forward.

• How real is Lordsburg? Any time frames?
  • Lordsburg is a viable project where we are in the process of investing funds for design and development. This will be a long-term project – I personally am very high on green energy for specific transportation modes – long haul freight, aviation, taxi/uber/Lyft, marine as examples. Green hydrogen weighs much less than batteries and refuels much quicker. The infrastructure for hydrogen is even further behind than EV Charging infrastructure, but on the other hand it does not add burden to an already fragile electric grid. We will continue to pursue this project but there is a substantial amount of groundwork to be done prior to construction.

• Any time frames on Hard Rock? When did you last speak?
  • This project we may no longer participate in. The owners of the HR Group are considering providing the capital themselves to support the construction phase, including a multi-million-dollar deposit for batteries which we cannot afford to provide at this time. Again, this is a multi-year long, multi sight project and the amount of capital required to be involved in this type of project is well beyond SIRC’s financial capabilities at this time.

Arbiter

• Can you share if Arbiter is coming through this month?
  • Our new General Counsel looking into the Arbiter transaction to uncover what our options are, how best to protect SIRC’s investment in Arbiter Capital, and how to recover that investment. The time-frame for this happening is not something we can predict.

• What are the use plans for Arbiter funds?
  • If our investment is returned, we would look at focusing the proceeds on the following: a share buyback program, additional retirement of debt, and operating capital infusion.

Sales

• Are revenues still strong across the board?
  • EV Charging infrastructure and Commercial Roofing opportunities remain strong. In addition, our goal to re-start combination residential roofing/residential solar remains on track to start up in January. We are also hopeful of completing a few jobs in December to work out any potential bugs in the process. We also have several promising commercial solar projects we have either bid on or are under development for bid. 
  • We expect a ramp up of Lighting projects in 2024 as new regulations will accelerate the transition need in California, particularly in educational facilities at all levels. PLEMCo is registered to receive and bid on every project in every school district in California.

• Are there any wins that you can speak to that are going to affect Q4 or Q1 next year.
  • We have numerous opportunities in the queue but nothing to announce at this time. We have several bids that have been announced but until the contract is signed, those details will remain in-house.

• Have the Future Home Power hires started in December? How is that going?
  • We have offered convertible notes to former FHP 1099 reps, of which about 75% have already signed them for past due commissions owed from 2021/2022. We are testing the sales process in December on a few jobs and are expecting to start ramping up the combination jobs in January when the sales force returns to working full time.

• Solar/Roof Replacement financing package. Is this generating sales?
  • Again, this was just recently launched, and we have 13 jobs in process for review and approval. We will use these jobs to work out any bugs out of the process and systems.

• We only made $4.8M in revenue in Q3, what is your plan to grow the revenue back up 30M- 50M per quarter where it was before?
  • We are reporting real sales figures, not possible sales figures. We expect to see profitable sales and will continue to grow through 2024. Many of the new initiatives will have immediate results, and some of the new initiatives will take a quarter or two to fill the pipeline.

• What segments/size of projects will contribute the most to revenue in 2024? Small commercial projects or big ones like Callaway?
  • Relying on large scale projects for profitable sales growth is not something SIRC can sustain. Rather, we will build our stated channels for profitable and continuous sales growth. When a large-scale project comes to fruition, that is added revenue and profits, but we cannot build a business based on swinging for the fences.

Business Health

• With all the work going into reducing debt and keeping the lights on, is there still a real possibility SIRC may need to file for bankruptcy?
  • We have been addressing some of the more severe debt through the 3A10 process, and by focusing on profitable sales growth we will work our way out of this situation over time. At the end of the day, bankruptcy does not make sense for SIRC or our creditors. Renewable energy businesses are not typically asset rich, and we are no exception. We don’t own buildings or carry much inventory, so filing for bankruptcy protection would only give us more time and structure to settle legitimate obligations and would not reduce or make them go away. From a supplier and/or creditor perspective, there is very little advantage into forcing SIRC into a restructure situation. We have some government debt that would take precedence in a liquidation event, so if folks want to get paid and paid in full, they will have to be patient – litigation does not solve any issues on either side.

• Do you anticipate the last raise of the Authorized Shares to 4B to be the last one?
  • As we get through Q4 2023 and Q1 2024, we should start to see the share price recover. This will be based on several different moves that are in-process, but there should not be a need for further share authorization to handle debt related situations. In the event of positive situations for share authorizations, i.e., potential acquisitions as we move forward of profitable and well positioned companies, that could be considered.

• Any institutional investors interested in SIRC?
  • There is interest in the renewable energy sector in general by institutional investors, even to the point of being a mandatory portion of some portfolios. We need to be fully reporting to attract those investors. Once we can become fully reporting, the market positions we are focused on, coupled with our current share price, will make us attractive to institutional investors.

• Are we still on track to be cash flow positive by Q1 2024?
  • Yes

• What other measures are being taken/in the works to achieving profitability and minimizing future dilution?
  • The actions we have taken will not show immediate results, but they are moving us in the right direction. By staying on course, these will have a positive impact on the business. Unfortunately, we have a steep hill to climb, and it will not happen overnight.

• How much more dilution do you anticipate to clean up the balance sheet?
  • Hopefully we are nearing the end of that phase of our recovery. I understand many shareholders are frustrated by the reliance on dilution to improve our balance sheet. But as the saying goes, you deal the hand you are dealt with the resources you have at hand. I did not create our debt position, but I must deal with it to be able to recover and move forward. Given the financial situation we are in, money is expensive even if it is available at all, and using our shares to clean things up, while painful in the short term, will be the right decision in the long term for shareholders.

• Can you provide a road map to becoming cash flow positive and becoming profitable?
  • If most actions we have taken or are in the process of taking continue to move us forward, we will become more cashflow positive and profitable every quarter we operate. We do not waste money on anything that isn’t specifically related to growing a profitable business and we do not intend to change course on that.

• It seems as if all previous people working under Dave has been dismissed/removed under your watch. Why is Wanda still working for SIRC and what value does she bring to the company with all the previous bad financial report.
  • Multiple people have served in the role of CFO, including Dave Massey when he was not only the CFO, but the CEO and the only member of the board. Since Wanda has moved back into the CFO role, she has been instrumental in moving SIRC forward and providing unparalleled financial guidance. SIRC has a qualified PCAOB third party audit firm as an added layer of security. For non reporting OTC companies, rules can be broadly interpreted but Wanda keeps the lines very clear and in check.

Merger

• How likely is the Tribeca merger at this point?
  • We have agreed to an extension with Tribeca Energy and are working diligently to improve our value to be part of that uplist/merger. We are doing everything in our power to be ready to participate in the Tribeca Energy transaction. In the event that we do not participate in the Tribeca merger, the actions we are taking will bring overall success and be beneficial to all.

Counsel

• Is our general counsel being paid as an employee or only if he recovers damages via a lawsuit with Dave?
  • Our general counsel is being paid as an employee. Any recovery he can make will to be to the benefit of all SIRC Shareholders either though improvement to the Balance Sheet, Shares being retired, or share buybacks. He has full visibility to all company information and all transactions.

About Solar Integrated Roofing Corp.

Solar Integrated Roofing Corp. (OTC: SIRC) is an integrated, single-source solutions provider of solar power, roofing and EV charging systems, specializing in commercial and residential properties throughout North America. The Company serves communities by delivering the best experience through constant innovation & legacy-focused leadership. For more information, please visit the Company’s Investor Relations website at www.solarintegratedroofing.com, Corporate website at https://www.sirc.com or join us on Twitter, LinkedIn or Facebook.

Press Release Contact:
Julie Brehm
jbrehm@sircfamily.com