Accrued Expenses and Other Payables

6 Months Ended

Jun. 30, 2026

Accrued Expenses and Other Payables

Accrued Expenses and Other Payables

15. Accrued Expenses and Other Payables

Accrued expenses and other payables consisted of the following as of June 30, 2026 and December 31, 2025:

		June 30, 2026				December 31, 2025

Customer deposits		$	4,632,460			$	3,020,272
Accrued operating and project payables			1,693,758				2,086,146
China legal judgment			4,310,260				-
Payable to Uonone (See Note 17)			2,655,859				2,578,783
Accrued compensation expenses			2,532,211				3,270,154
Retainage payable to vendors			582,601				580,750
China preacquisition liability			1,579,737				1,533,891
Accrued warranty expense			558,677				551,170
VAT taxes payable			384,103				298,598
Income taxes payable			236,093				348,518
Refundable vendor bid deposits			14,723				14,296
Total accrued expenses and other payables		$	19,180,482			$	14,282,578

Accrued Compensation

Accrued compensation includes compensation to the Company’s chief executive officer in connection with his $1.8 million of accrued but unpaid compensation pursuant to his employment agreement, which included $675,000 of accrued compensation related to the previously cancelled restricted stock grant for which the amount was paid during the six months ended June 30, 2026.

Customer Deposits

Customer deposits represent customer down payments and progress payments received prior to the completion of the Company’s earnings process. The amounts paid by customers are refundable during the period which, under applicable state and federal law, the customer’s order may be cancelled and the deposit refunded. Once the cancellation period has expired, the customer still may cancel the project but the Company is entitled to retain the deposit payments for work that was completed and materials that were delivered.

China Preacquisition Liability

China preacquisition liability relates to liabilities incurred by the Company's PRC subsidiary prior to the Company’s business combination transaction completed in April 2015, which were related to EPC projects completed prior to the business combination. The Company assumed these contingent obligations in connection with the acquisition. To date, the Company has not received any claims related to these liabilities. See Note 17.

China Legal Judgment

As a result of the legal proceeding that began in February 2026 and the court judgments received in June and August 2026, the Company's China subsidiary is responsible for additional farmland occupation taxes on four photovoltaic projects that were completed in 2020 and 2021 totaling RMB 29,274,811 (approximately $4.3 million). Such taxes were paid by SPIC and the Company expects to offset this amount with future recovery from SPIC on the project receivable and equity buyout, when it occurs (see legal proceedings and loss contingency in Note 19).

Accrued Warranty Liability

The activity of the warranty liability (included in other liabilities) for the six months ended June 30, 2026 and 2025 is as follows:

		Six Months Ended June 30,
		2026				2025

Balance – beginning of period		$	2,367,120			$	2,146,522
Provision for warranty liability			252,009				106,492
Expenditures and adjustments			(299,205	)			(180,491	)
Effect of exchange rate			7,507				4,390
Balance – end of period			2,327,431				2,076,913
Less: current portion (accrued expenses and other payables)			(558,677	)			(545,146	)
Non-current portion (other liabilities)		$	1,768,754			$	1,531,767