Customer Loans Receivable

6 Months Ended

Jun. 30, 2026

9. Customer Loans Receivable

Prior to 2023, the Company provided financing to qualified customers to purchase residential or commercial photovoltaic systems, as well as other products the Company offered in the U.S. Depending on the credit rating of customers, the interest rate generally ranges from 0.00% to 10.99% per annum with financing terms ranging from one to fifteen years. At June 30, 2026 and December 31, 2025, the percentage of the Company’s loan portfolio with a 0% interest rate is 0.2% and 0.4%, respectively.

The customer gives the Company a security interest in the photovoltaic systems and other products financed.

The following tables summarize the Company’s customer loan receivables by credit rating, determined at origination, for each vintage of the customer loan receivable portfolio at June 30, 2026:

									June 30, 2026
	2023		2022		2021		Prior		Total		%
Prime - FICO score 680 and greater	$	-	$	-	$	-	$	2,374,047	$	2,374,047		88.7	%
Near-prime - FICO score 620 to 679		-		-		-		250,685		250,685		9.3	%
Sub-prime - FICO score less than 620		-		-		-		52,955		52,955		2.0	%
Business entity — FICO not available		-		-		-		-		-	-		%
Total Customer Loan Receivables, gross	$	-	$	-	$	-	$	2,677,687	$	2,677,687		100.0	%

The following tables summarize the Company’s customer loan receivables by credit rating, determined at origination, for each vintage of the customer loan receivable portfolio at December 31, 2025:

							December 31, 2025
	2022		2021		Prior		Total		%
Prime - FICO score 680 and greater	$	-	$	-	$	2,950,941	$	2,950,941		88.5	%
Near-prime - FICO score 620 to 679		122		-		251,723		251,845		7.5	%
Sub-prime - FICO score less than 620		-		-		124,373		124,373		3.7	%
Business entity — FICO not available		-		10,303		-		10,303		0.3	%
Total Customer Loan Receivables, gross	$	122	$	10,303	$	3,327,037	$	3,337,462		100.0	%

Customer loans receivable consist of the following as of June 30, 2026 and December 31, 2025:

	June 30, 2026			December 31, 2025

Customer loans receivable, gross	$	2,677,687		$	3,337,462
Allowance for loan losses		(128,653	)		(206,479	)
Customer loans receivable, net		2,549,034			3,130,983
Less: Current portion		779,497			874,617
Non-current portion	$	1,769,537		$	2,256,366

Principal maturities of the customer loans receivable at June 30, 2026 are summarized as follows:

For the year ending December 31,	Amount
2026 (remainder of)	$	394,017
2027		753,804
2028		607,474
2029		427,803
2030		264,724
Thereafter		229,865
Total customer loans receivable	$	2,677,687

The Company is exposed to credit risk on the customer loans receivable. Credit risk is the risk of loss arising from the failure of customers to meet the terms of their contracts with the Company or otherwise fail to perform as agreed.

The activity in the allowance for loan losses for customer loans receivable for the six months ended June 30, 2026 and 2025 is as follows:

	Six Months Ended June 30,
	2026			2025

Balance – beginning of period	$	206,479		$	280,082
Provision (recovery) for loan losses		(92,866	)		(54,261	)
Adjustments		15,040			7,487
Balance – end of period	$	128,653		$	233,308

Total interest income on the customer loans receivable included in revenues was approximately $32,000 and $80,000 for the three months ended June 30, 2026 and 2025, respectively, and approximately $85,000 and $151,000 for the six months ended June 30, 2026 and 2025, respectively.