olivlawolivlaw

olivLaw · US equity research

SolarMax Technology, Inc. SMXT

Construction - Special Trade Contractors · SIC 1700 · Vertical: Construction - Special Trade Contractors (SIC 1700)

4.12USD−5.84% · 1 dayClose 04 Nov 2026

SolarMax Technology is a California solar energy company that has shifted since 2025 toward EPC contracts for large battery energy storage systems. The shift matters now because these large projects could change the company's profile, but they remain fragile given defaulted debt and the risk of delisting from Nasdaq.

At the close of 04 Nov 2026, SolarMax Technology, Inc. (SMXT) stock was 4.12 USD (−5.84% on the day), with market capitalisation 19.5 m USD, beta 0.88, 52-week range 1.83–12.48 USD. Latest reported quarter (Q2 2026): revenue of 10.2 m USD (+48.8% YoY), net income of -4.7 m USD, diluted EPS -0.98 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
19.5 m USD
shares as of 30 Sept 2026
P/E (TTM)
unavailable
Diluted EPS TTM -1.05 · TTM to 30 Jun 2026
E/P (TTM)
-25.42%
TTM to 30 Jun 2026
Dividend yield
unavailable
Beta (2y)
0.88
Volatility (1y) 114%
52-week range
1.8312.48

Price history

Loading chart…

Technical reading

RSI (14)
49.9
neutral
Bollinger (20, 2)
3.89 – 5.36
in the lower half of the band · %B 0.15 · band width 31.8%
SMA 50 / 200
3.35 / 5.83
mixed trend
MACD (12, 26, 9)
0.25 / 0.36
MACD below signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month+73.6%−1.1%+74.7 pp—
3 months−11.8%−0.5%−11.4 pp—
6 months−45.0%+4.4%−49.3 pp—
Year to date−58.2%+12.3%−70.5 pp—
1 year−63.3%+13.5%−76.9 pp−46.5%
3 yearsunavailable+76.4%unavailable−18.7%
5 yearsunavailable+63.7%unavailable—
Max drawdown (1y)
−85.3%
11 Nov 2025 → 15 Sept 2026
Max drawdown (5y)
−99.0%
15 Apr 2024 → 15 Sept 2026
Compound annual growth (5y)
unavailable
S&P 500 +10.4%

Price returns, dividends excluded.

Quarterly results

Latest quarter: Q2 2026 · 30 Jun 2026

Revenue
10.2 m USD
+48.8% YoY
Net income
-4.7 m USD
unavailable YoY
Diluted EPS
-0.98
unavailable YoY
net / operating
-45.4% / -43.5%

Quarterly margins

Quarterly statements · USD

Fiscal yearQ3 '24Q4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26
Revenue6.3 m6.4 m6.9 m6.9 m30.6 m46.6 m14.8 m10.2 m
Cost of revenue5.1 m5.5 m5.5 m6.3 m29.6 m45.3 m11.8 m7.8 m
Gross profit1.3 m933.6 k1.4 m604.6 k956.2 k1.3 m3.0 m2.4 m
Operating income-10.0 m-1.8 m-1.2 m-1.8 m-2.1 m-1.3 m96.2 k-4.5 m
Depreciation & amortisation23.8 k ≈10.3 k19.0 k16.8 k ≈12.9 k ≈13.2 k13.1 k11.5 k ≈
Interest expense399.5 k397.0 k369.4 k362.6 k355.9 k278.3 k298.1 k248.9 k
Pre-tax income-9.6 m-2.2 m-1.4 m-2.0 m-2.8 m-1.3 m-313.0 k-4.7 m
Income tax56.8 k1.7 m-63.6 k-106.2 k-515.5 k-449.2 k-6.3 k-26.0 k
Net income-9.6 m-3.9 m-1.3 m-1.9 m-2.3 m-872.2 k-306.7 k-4.7 m
Diluted EPS-0.21-0.09 ≈-0.03-0.50-0.04-0.02 ≈-0.01-0.98
Operating cash flow203.6 k ≈-1.3 m-601.1 k220.7 k ≈3.4 m ≈-2.5 m-4.2 m-969.3 k ≈
Capex0 ≈0——————

≈ derived quarter (cumulative difference / share-days average)

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Fiscal years

Fiscal year2022202320242025
Revenue44.7 m54.1 m23.0 m91.0 m
Revenue YoYunavailable+21.1%−57.5%+295.8%
Net income-6.9 m434.8 k-35.0 m-6.3 m
Net income YoYunavailableunavailable−8,141.3%unavailable
Diluted EPS-0.170.01-0.79-0.13
Diluted EPS YoYunavailableunavailable−8,000.0%unavailable
net %-15.4%0.8%-152.1%-7.0%
Free cash flow-2.1 m4.1 m-9.1 munavailable

Reported results vs expectations

Loading…

Balance sheet & financial health

Fiscal year 2025 · 31 Dec 2025

Cash
8.0 m USD
Financial debt
20.2 m USD
Net debt
12.2 m USD
Equity
-12.2 m USD
Total assets
91.3 m USD
Debt / equity
unavailable
Current ratio
0.79x
ROE
unavailable
ROA
-9.7%
FCF margin
unavailable

Financial statements (source on every figure)

Revenue and net income (USD)

Margins

Income statement · USD

Revenue
2023
54.1 m
2024
23.0 m
2025
91.0 m

SEC (XBRL)· 06 Apr 2026verified

Cost of revenue
2023
43.0 m
2024
20.7 m
2025
86.8 m

SEC (XBRL)· 06 Apr 2026verified

Gross profit
2023
11.1 m
2024
2.3 m
2025
4.2 m

SEC (XBRL)· 06 Apr 2026verified

Operating income
2023
483.9 k
2024
-33.1 m
2025
-6.3 m

SEC (XBRL)· 06 Apr 2026verified

Depreciation & amortisation
2023
180.7 k
2024
81.5 k
2025
61.9 k

SEC (XBRL)· 06 Apr 2026verified

EBITDA
2023
664.5 k ≈
2024
-33.0 m ≈
2025
-6.2 m ≈

SEC (XBRL)· 06 Apr 2026derived

Interest expense
2023
—
2024
1.6 m
2025
1.4 m

SEC (XBRL)· 06 Apr 2026verified

Pre-tax income
2023
370.6 k
2024
-33.3 m
2025
-7.5 m

SEC (XBRL)· 06 Apr 2026verified

Income tax
2023
-64.2 k
2024
1.7 m
2025
-1.1 m

SEC (XBRL)· 06 Apr 2026verified

Net income
2023
434.8 k
2024
-35.0 m
2025
-6.3 m

SEC (XBRL)· 06 Apr 2026verified

Diluted EPS
2023
0.01
2024
-0.79
2025
-0.13

SEC (XBRL)· 06 Apr 2026verified

Weighted average diluted shares
2023
40.0 m
2024
44.3 m
2025
50.0 m

SEC (XBRL)· 06 Apr 2026verified

Balance sheet · USD

Cash
2023
2.5 m
2024
786.3 k
2025
8.0 m

SEC (XBRL)· 06 Apr 2026verified

Receivables
2023
4.2 m
2024
4.2 m
2025
12.9 m

SEC (XBRL)· 06 Apr 2026verified

Inventories
2023
1.3 m
2024
1.3 m
2025
2.1 m

SEC (XBRL)· 06 Apr 2026verified

Current assets
2023
19.9 m
2024
20.9 m
2025
75.3 m

SEC (XBRL)· 06 Apr 2026verified

Property, plant & equipment, net
2023
291.4 k
2024
200.9 k
2025
138.9 k

SEC (XBRL)· 06 Apr 2026verified

Goodwill
2023
7.6 m
2024
0
2025
0

SEC (XBRL)· 06 Apr 2026verified

Total assets
2023
48.7 m
2024
38.6 m
2025
91.3 m

SEC (XBRL)· 06 Apr 2026verified

Accounts payable
2023
3.4 m
2024
2.7 m
2025
59.6 m

SEC (XBRL)· 06 Apr 2026verified

Short-term debt
2023
20.7 m
2024
18.0 m
2025
20.2 m

SEC (XBRL)· 06 Apr 2026verified

Current liabilities
2023
43.4 m
2024
34.7 m
2025
95.7 m

SEC (XBRL)· 06 Apr 2026verified

Total liabilities
2023
64.5 m
2024
53.7 m
2025
103.5 m

SEC (XBRL)· 06 Apr 2026verified

Equity
2023
-15.9 m †
2024
-15.1 m †
2025
-12.2 m †

SEC (XBRL)· 06 Apr 2026verified

Cash flow · USD

Operating cash flow
2023
4.1 m
2024
-9.1 m
2025
498.0 k

SEC (XBRL)· 06 Apr 2026verified

Capex
2023
28.0 k
2024
0
2025
—

SEC (XBRL)· 31 Mar 2025verified

Free cash flow
2023
4.1 m ≈
2024
-9.1 m ≈
2025
—

SEC (XBRL)· 31 Mar 2025derived

Investing cash flow
2023
-6.6 k
2024
-6.3 m
2025
5.8 m

SEC (XBRL)· 06 Apr 2026verified

Financing cash flow
2023
-5.3 m
2024
13.3 m
2025
1.1 m

SEC (XBRL)· 06 Apr 2026verified

Computed indicators

Growth

Revenue growth (YoY)
295.8%
computed by olivLawFY 2025
Revenue CAGR 3Y
26.7%
computed by olivLawFY 2022 → FY 2025
Revenue CAGR 5Y
unavailable
input data missing
EBIT growth (YoY)
unavailable
the base of the ratio is not positive
Net income growth (YoY)
unavailable
the base of the ratio is not positive
Net income CAGR 3Y
unavailable
the base of the ratio is not positive
Net income CAGR 5Y
unavailable
input data missing
EPS growth (YoY)
unavailable
the base of the ratio is not positive
EPS CAGR 3Y
unavailable
the base of the ratio is not positive
EPS CAGR 5Y
unavailable
input data missing
FCF growth (YoY)
unavailable
input data missing

Profitability

Gross margin
7.5%
computed by olivLawTTM to 30 Jun 2026
EBITDA margin
-7.5%
computed by olivLawTTM to 30 Jun 2026
EBIT margin
-7.6%
computed by olivLawTTM to 30 Jun 2026
Net margin
-7.9%
computed by olivLawTTM to 30 Jun 2026
FCF margin
unavailable
input data missing

Returns

ROE
unavailable
equity is negative: the ratio is not economically meaningful (not by itself insolvency; usually the result of buybacks)
ROA
-10.9%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
ROIC
unavailable
equity is negative: buybacks shrink the invested capital and ROIC would come out large without meaning anything
ROCE
-12.7%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Payout ratio (EPS)
unavailable
input data missing
Payout ratio (FCF)
unavailable
input data missing

Balance sheet

Net debt
18.5 m USD
computed by olivLawbalance sheet at 30 Jun 2026
Net debt / EBITDA
unavailable
insufficient data
Debt / equity
unavailable
equity is negative: the ratio is not economically meaningful (not by itself insolvency; usually the result of buybacks)
Interest coverage
-6.5x
computed by olivLawTTM to 30 Jun 2026

Liquidity

Current ratio
1.0x
computed by olivLawbalance sheet at 30 Jun 2026
Quick ratio
0.9x
computed by olivLawbalance sheet at 30 Jun 2026
Cash ratio
0.0x
computed by olivLawbalance sheet at 30 Jun 2026

Cash

Operating cash flow
-4.3 m USD
computed by olivLawTTM to 30 Jun 2026
Capital expenditure
unavailable
input data missing
Free cash flow
unavailable
input data missing
FCF conversion
unavailable
input data missing
Cash conversion
unavailable
insufficient data

Efficiency

Days sales outstanding
38 days
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Days inventory outstanding
6 days
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Days payables outstanding
24 days
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Cash conversion cycle
20 days
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026

Market and valuation

Market capitalisation
19.5 m USD
computed by olivLawbalance sheet at 30 Jun 2026
Enterprise value
38.1 m USD
computed by olivLawbalance sheet at 30 Jun 2026
Market cap / net income TTM
unavailable
insufficient data
P/E (TTM)
unavailable
insufficient data
Earnings yield
-25.4%
computed by olivLawTTM to 30 Jun 2026
P/B
unavailable
equity is negative: the ratio is not economically meaningful (not by itself insolvency; usually the result of buybacks)
P/S
0.2x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
EV/EBITDA
unavailable
insufficient data
EV/EBIT
unavailable
insufficient data
EV/Sales
0.4x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
P/FCF
unavailable
input data missing
FCF yield
unavailable
input data missing
Dividend yield
unavailable
no dividend in the structured statements; a missing line is not a confirmed zero
Shareholder yield (distributions)
unavailable
input data missing

Risk

Altman Z
-0.68
computed by olivLawbalance sheet at 30 Jun 2026

Valuation

olivLaw classification

Insufficient data
What is missing
  • indicators available: 4 of at least 6
  • score weight coverage: 25.0% of at least 60%
  • valuation methods computed: 0 of at least 1

A scoring methodology on indicators and valuation, not investment advice.

Closing price

4.12 USD

04 Nov 2026Source: olivLaw, closing series

Market cap: 19.5 m USD

Key indicators

Market capitalisation
19.5 m USD
computed by olivLawbalance sheet at 30 Jun 2026
P/E (TTM)
unavailable
insufficient data
P/B
unavailable
equity is negative: the ratio is not economically meaningful (not by itself insolvency; usually the result of buybacks)
EV/EBITDA
unavailable
insufficient data
ROE
unavailable
equity is negative: the ratio is not economically meaningful (not by itself insolvency; usually the result of buybacks)
Net margin
-7.9%
computed by olivLawTTM to 30 Jun 2026
Revenue growth (YoY)
295.8%
computed by olivLawFY 2025
Dividend yield
unavailable
no dividend in the structured statements; a missing line is not a confirmed zero

Coverage and freshness

29/37 reporting lines present
Latest full fiscal year: 2025
Latest reported period: 30 Jun 2026
Latest balance sheet date: 30 Jun 2026
Share count (cover of the latest filing), as of: 30 Sept 2026
Source: SEC (XBRL)published 08 Oct 2026
verified 495derived 37

Score by group

25% · Insufficient data

Estimated value range

unavailable — no valuation method could be computed

Valuation assumptions are editorial choices, not measured; beta is not measured.

Valuation methods

  • DCF (discounted cash flow)unavailable · the input exists, but its latest figure is far older than the latest reported period: not used
  • Peers: EV/EBITDAunavailable · the base of the ratio is not positive
  • Peers: P/Eunavailable · the base of the ratio is not positive
  • Dividend discount (DDM)unavailable · the company pays no dividend: a dividend model needs an explicit initiation assumption

no valuation method could be computed

Multiple comparisons use the SIC vertical: Construction - Special Trade Contractors (SIC 1700)

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Insufficient data

Minimum-evidence gate: indicators available: 4 of at least 6; score weight coverage: 25.0% of at least 60%; valuation methods computed: 0 of at least 1

FactorValueScoreWeight used
ROIC · Qualityunavailableunavailable—
Net margin · Quality-7.9%39 (vs peers)25%
FCF conversion · Qualityunavailableunavailable—
Revenue CAGR 3Y · Growth26.7%100 (on a fixed band)33%
EPS CAGR 3Y · Growthunavailableunavailable—
Net debt / EBITDA · Balance sheetunavailableunavailable—
Interest coverage · Balance sheet-6.5x0 (on a fixed band)25%
Current ratio · Balance sheet1.0x15 (on a fixed band)17%
P/E (TTM) · Valuationunavailableunavailable—
EV/EBITDA · Valuationunavailableunavailable—
FCF yield · Valuationunavailableunavailable—
Shareholder yield (distributions) · Returnsunavailableunavailable—
Payout ratio (FCF) · Returnsunavailableunavailable—

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet6/100 · 2/3 factors with a value
  • Growth· partial100/100 · 1/2 factors with a value
  • Quality· partial39/100 · 1/3 factors with a value
  • Returns· partialunavailable · 0/2 factors with a value
  • Valuation· partialunavailable · 0/3 factors with a value

A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.

Memo

SolarMax Technology, Inc. (SMXT). Latest full fiscal year: 2025; data up to 2026-06-30.

Figures computed from the financial statements: revenue 91.0 m USD in 2025; YoY growth 295.8%; net margin -7.9%.

Valuation cannot be computed from the available data.

Insufficient data for a verdict (indicators available: 4 of at least 6; score weight coverage: 25.0% of at least 60%; valuation methods computed: 0 of at least 1).

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • Revenue CAGR 3Y: 26.7%

What contradicts it

  • Interest coverage: -6.5x
  • Current ratio: 1.0x

Not assessed (insufficient data or a ratio without meaning): ROIC, FCF conversion, EPS CAGR 3Y, Net debt / EBITDA, P/E (TTM), EV/EBITDA, FCF yield, Shareholder yield (distributions), Payout ratio (FCF).

Versus the vertical median

Construction - Special Trade Contractors (SIC 1700) · same industry (4-digit SIC) · compared with 18 companies

Multiples and returns vs the median

P/E
—
vertical median 22.7x
EV/EBITDA
—
vertical median 10.8x
P/S
0.2x
vertical median 1.0x
below median (−81.0%)
P/B
—
vertical median 2.5x
ROE
—
vertical median -1.8%
Net margin
-7.9%
vertical median -2.5%
below median
EBIT margin
-7.6%
vertical median -13.5%
above median
Revenue YoY
295.8%
vertical median 8.1%
above median (+3,571.7%)
Net debt/EBITDA
—
vertical median 0.1x
Dividend yield
—
vertical median 0.7%

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
AGXArgan Inc4.1 bn23.039.8%15.1%+8.1%−26% / +523%
BBUCBrookfield Business Corporation2.7 bn—2.4%1.4%−32.4%−11% / +70%
RUNSunrun Inc.2.1 bn4.416.2%14.0%+45.1%−57% / −32%
LMBLimbach Holdings, Inc.681.6 m22.716.0%4.2%+24.7%−18% / +52%
BBCPConcrete Pumping Holdings, Inc.510.5 m59.83.9%2.4%−7.7%+61% / +36%
PHOEPhoenix Asia Holdings Limited401.7 m—-25.9%-16.7%−2.2%+32% / unavailable
MTRXMatrix Service Company258.3 m—-1.8%-0.3%+13.6%−22% / −8%
MSGYMasonglory Limited66.8 m7.0-135.4%-34.0%+1.0%−82% / unavailable
SPWRSunpower Inc.50.5 m——-3.8%+175.9%−86% / −79%
FGLFounder Group Limited24.7 m—-31.9%-5.6%unavailable−100% / unavailable
SMXTSolarMax Technology, Inc.19.5 m——-7.9%+295.8%−63% / unavailable
PMAMing Shing Group Holdings Limited16.9 m——-39.4%−56.8%−23% / unavailable
WXMWF International Limited14.4 m—-71.9%-24.5%−13.7%−62% / unavailable
CETXCemtrex, Inc.1.7 m—-152.4%-38.4%+14.4%−97% / −100%
ZEOZeo Energy Corp.0——-15.4%−5.3%−83% / −98%
LGNLegence Corp.——-7.5%-1.2%+21.5%−30% / unavailable
KAZRSkyline Builders Group Holding Limited——20.6%18.1%+8.9%−54% / unavailable
PBKPOWERBANK Corp——-174.4%-74.7%−28.9%−90% / unavailable
AMRCAmeresco, Inc.——5.5%3.3%+28.8%−39% / −29%

1- and 3-year price returns: for SMXT from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

The engine has no published run for this company yet.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.

Bear
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Base
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Bull
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Nothing is saved.

Estimated price (USD)

Estimated priceBearBaseBull
1 years
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
3 years
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
5 years
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
What moves the 3-year price the most

    AI analysis

    AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

    In brief

    SolarMax Technology is a California solar energy company that has shifted since 2025 toward EPC contracts for large battery energy storage systems. The shift matters now because these large projects could change the company's profile, but they remain fragile given defaulted debt and the risk of delisting from Nasdaq 13.

    SWOT

    Strengths

    • The company has over a decade of experience in solar installations and an extensive base of residential and commercial customers in California 1.
    • EPC storage contracts have the potential for revenue far above the existing residential business 1.
    • The company showed revenue and gross profit growth in the second quarter of 2026 3.

    Weaknesses

    • The company is not yet profitable and has a significant working capital deficit 1.
    • Convertible notes are in default, and part of the loan book depends on refinancing 1.
    • Revenue is concentrated in a single large contract, so results are sensitive to the execution of that project 1.

    Opportunities

    • If BESS projects are executed on time and on budget, the company could win new large contracts 1.
    • Demand for storage and for pairing solar with batteries could grow as grids expand 1.
    • Expansion into industrial EPC and LED projects could diversify revenue 3.

    Threats

    • The risk of Nasdaq delisting could make financing and new large contracts harder to obtain 2.
    • Debt maturities and acceleration of defaulted notes could affect liquidity 1.
    • Federal and state policies such as NEM 3.0 could reduce demand for residential installations 1.

    Risks

    • Defaulted debthigh

      Convertible notes in default could be accelerated, and the company might not be able to pay the amounts due 1.

    • Negative working capitalhigh

      The company has a working capital deficit and depends on outside financing to continue operations 1.

    • Nasdaq delisting riskhigh

      If the market value of the shares does not recover to the required level, the stock could trade over-the-counter, making financing harder 2.

    • Dependence on fixed-price contractsmedium

      EPC contracts carry fixed prices, and rising costs could reduce or eliminate profit 1.

    • BESS execution riskmedium

      There is no track record yet of completing a BESS system on time and on budget, so execution could be weaker than expected 1.

    Investment thesis

    What would need to be true (bull case)

    • If the BESS projects are completed, the company could build a larger and more stable revenue base than the residential business 1.
    • Revenue and gross profit growth in the second quarter of 2026 shows that operational execution can progress 3.
    • Demand for storage and solar could expand if energy policy remains supportive, and the company could benefit from that trend 1.

    What would break the thesis

    • The company is not profitable, has defaulted debt and a working capital deficit, which could limit its ability to finance projects 1.
    • Revenue depends on one large contract, and any delay or cost overrun could weigh on results 1.
    • The risk of Nasdaq delisting could reduce partners' willingness to start new projects if trading moves to OTC 2.

    What to watch

    • Financial results and execution of the Longfellow projectQ3 2026
    • Compliance with the Nasdaq market value of listed securities requirementDecember 2026
    • Status of defaulted convertible notes and refinancing of EB-5 loansnext 10-K
    • Start of work on the three contracts signed on 31 December 20252027

    Products, market & competition

    AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

    The business

    The company was founded in 2008 and conducts its business mainly in the United States, mainly in California, where it designs, installs and sells photovoltaic and battery systems for residential and commercial customers, along with LED systems for government and commercial users 1. Since the third quarter of 2025 its primary business has been negotiating and performing EPC contracts for commercial BESS systems 1. Operations in China have generated no revenue since 2021 1.

    The corporate structure includes subsidiaries for solar installations and EPC projects, LED projects, financing (which has not provided new loans since 2020), and leasing and PPAs through SMX Capital, which has not leased new systems since 2014 1. The principal office is in Riverside, California 1.

    Financing is a sensitive point: the company has used EB-5 program loans and convertible notes, and part of this debt is in default or due 1. Results for the second quarter of 2026 show higher sales and gross profit, but the net loss remained negative 3.

    Segments

    Battery energy storage (BESS) EPC projects

    This is the company's new growth engine. The Longfellow contract in Texas generated 60.2 mn USD of revenue in fiscal 2025, but work only began in the second half of the year 1. Three further contracts were signed on 31 December 2025, two in Puerto Rico and one in Corpus Christi, with expected revenue of up to 258.1 mn USD 1.

    Residential and commercial solar installations

    This line brings smaller and fluctuating sales. The expiry of the federal residential incentive on 31 December 2025 and California's NEM 3.0 rules have reduced demand 12. The company laid off part of its team in 2024 after demand slowed 1.

    Market context

    Solar accounts for about 16% of US electricity generation and remains the fastest-growing renewable source 1. The US market could exceed 125 bn USD by 2030 if investment in large projects and distributed generation continues 1.

    Federal and state policy directly shapes demand. Policies favoring petroleum and nuclear energy could reduce demand for solar and wind, and in California NEM 3.0 has cut the rewards for solar system owners 1.

    Trends

    • Expiry of the federal residential tax creditheadwind

      The 30% credit for residential systems expired on 31 December 2025, which could reduce customers' interest in new installations 12.

    • Growth of BESS projectstailwind

      Demand for large-scale storage could offset the decline in residential business if projects are completed on time and on budget 1.

    • Inflation and input costsheadwind

      Polysilicon prices, trade tariffs and Middle East tensions could raise costs and compress margins, especially on fixed-price contracts 12.

    • Project finance and state policymixed

      Access to project financing and state renewable energy policy could support or limit the company's expansion, depending on market conditions 1.

    Competitive position

    The sources do not identify directly listed competitors. The company operates in a fragmented solar market in California, where competition runs on price, execution capacity and financing 1.

    In BESS projects the advantage depends on supplier relationships and technical experience, which the company cites in support of its contracts 1.

    • Other solar installers in California

      The sources do not name specific competitors, but the California residential market is contested by several private installers.

    • BESS suppliers and large-project integrators

      Competition for large EPC contracts comes from storage specialists whose profiles are not detailed in the sources.

    • Utilities and project developers

      Large-scale storage projects can also be built in-house by developers or utilities, which limits the external market.

    • Panel and system manufacturers

      The supply chain for panels and batteries depends on external suppliers, who can also influence price competition.

    News & filings

    In the press

    No news in our archive over the last 180 days.

    SEC filings

    • Current report09 Oct 2026
      Results of operations · Financial statements and exhibits
    • Quarterly report08 Oct 2026
    • Current report21 Aug 2026
      Delisting notice · Financial statements and exhibits
    • Current report11 Aug 2026
      Item 3.03 · Amendments to articles or bylaws · Financial statements and exhibits
    • Current report05 Aug 2026
      Item 3.03 · Amendments to articles or bylaws · Financial statements and exhibits
    • Current report28 Jul 2026
      Item 3.03 · Amendments to articles or bylaws · Financial statements and exhibits
    • Current report30 Jun 2026
      Delisting notice · Financial statements and exhibits
    • Current report19 May 2026
      Departure or appointment of officers
    • Current report18 May 2026
      Results of operations · Financial statements and exhibits
    • Quarterly report15 May 2026

    Sources

    1. [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / SolarMax Technology, Inc. · 06 Apr 2026
    2. [2] Form 10-Q, quarter ended 2026-06-30 · SEC / SolarMax Technology, Inc. · 08 Oct 2026
    3. [3] Form 8-K, results release (exhibit 99.1) · SEC / SolarMax Technology, Inc. · 09 Oct 2026

    Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.