SPI Solar is concerned that its financial woes might be severe enough to imperil its future. In its latest quarterly financial report filed with the U.S. Securities and Exchange Commission (SEC), the company reveals that unless its current situation improves drastically, it has ‘substantial doubt as to (its) ability to continue as a going concern.’
Such gloom was reflected in SPI Solar's quarterly earnings. The company reports that its net sales for the first quarter of 2013 were $1.8 million, compared with $26.3 million in the same quarter of last year. While citing general malaise in the solar industry, SPI Solar says its difficulties in securing financing is adversely affecting its project pipeline.
According to its report to the SEC, SPI Solar is unsure of its ability to acquire additional money from the China Development Bank (CDB), which has funded many of the company's projects. Furthermore, SPI Solar says the financial difficulties of its chief shareholder, LDK Solar Co. Ltd., which owns about 71% of SPI's outstanding common stock, undermines confidence additional money from the CDB will be forthcoming.
Another problem darkening its outlook is that CDB financing of SPI Solar's projects is contingent on its use of LDK solar panels, and LDK is demanding payment up front for these, money the company says it does not have on hand.