RELATED PARTY TRANSACTIONS |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2026 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Related Party Transactions [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Board Consulting Agreements During the three and six months ended June 30, 2026 and 2025, we engaged two members of the Board under consulting agreements, one of whom has since ceased to serve on the Board. During the three and six months ended June 30, 2026, the expenses incurred for these consulting services were $0.1 million and $0.3 million, respectively, and during the three and six months ended June 30, 2025, the expenses incurred for these consulting services were $0.2 million and $0.4 million, respectively. These expenses are recognized as general and administrative expenses within our unaudited condensed consolidated statements of operations and comprehensive loss. Additionally, one board member shall receive restricted stock units with a grant date fair market value of $0.3 million if the Company signs a definitive agreement related to a significant merger and acquisition transaction. Trina Group We have related party balances and transactions with Trina Solar and its affiliates (the “Trina Group”) as a result of the Trina Business Combination and through the normal course of business. PV solar module gross sales of $261.5 million and $450.2 million to the Trina Group are presented as net sales - related party for the three and six months ended June 30, 2026, respectively. Net sales - related party for the three and six months ended June 30, 2026, are reduced for amortization of $11.4 million and $22.7 million, respectively, for the intangible asset related to a favorable acquired customer contract that was recorded as part of purchase accounting for the Trina Business Combination. PV solar module gross sales of $77.7 million and $142.3 million to the Trina Group are presented as net sales - related party for the three and six months ended June 30, 2025, respectively. Net sales - related party for the three and six months ended June 30, 2025, are reduced for amortization of $11.3 million and $22.5 million, respectively, for the intangible asset related to a favorable acquired customer contract that was recorded as part of purchase accounting for the Trina Business Combination. Deferred revenue from offtake agreements with the Trina Group was $150.4 million and $56.7 million as of June 30, 2026 and December 31, 2025, respectively. The Company has agreements with the Trina Group to supply certain materials and components used in our PV solar module production, provide operational support and sales agency and aftermarket services. Total purchases from Trina Group under the supply agreements were $428.1 million and $87.0 million for the six months ended June 30, 2026 and 2025, respectively. For the three and six months ended June 30, 2026 we incurred $10.1 million and $18.6 million, respectively, in costs which were presented as selling, general and administrative expenses. For the three and six months ended June 30, 2025 we incurred $21.8 million and $27.9 million, respectively, in costs which were presented as selling, general and administrative expense. Accounts receivable, accrued liabilities, and accounts payable with the Trina Group consisted of the following (in thousands):
Additionally, we have a debt obligation to Trina Group for the Production Reservation Fee and we have provided Trina Group with the Anti-Dilution Right and Capital Raising Anti-Dilution Right as further described in Note 6 – Debt and Note 10 – Redeemable Preferred Stock, Anti-Dilution Right, and Share Purchase Agreement. Other During 2025, we also entered into a contract with Pareto Securities AS, of which the son of Einar Kilde, our former Chief Development Officer, is an equity partner, to act as a broker with respect to the sale of certain assets held in our European business and to perform valuation services of those assets. During the three and six months ended June 30, 2025, we paid less than $0.1 million in retainer fees to Pareto Securities AS with no comparable amounts in 2026. Additionally, Pareto Securities AS shall receive a minimum broker fee of $0.8 million if there is a completed sale, which is subject to increase based on certain conditions as outlined in the contract. The retainer fee shall be deductible from the broker fee.
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