R $14.8 million in revenue and net income of $7.3 million (EPS of $0.12) in first quarter as a public company
Scottsdale, Arizona--(Newsfile Corp. - February 18, 2025) - The Awareness Group (OTC Pink: FHLD) (TAG) (trading as Freedom Holdings), $FHLD, an emerging national leader in solar energy services and financing solutions and creator of the TAG GRID, today provided a letter to shareholders from CEO and Founder Pablo Diaz regarding its first quarter ended December 31, 2024. This was TAG's first quarter as a public company following its September 18, 2024, reverse merger with Freedom Holdings.
| Financial Summary | |
in millions, except for EPS and percentages | 1Q25 |
| Total Revenue | $14.8 |
| Gross Profit | $7.5 |
| Gross Margin | 51.0% |
| Operating Income | $7.3 |
| Operating Margin | 49.4% |
| Net Income | $7.3 |
| Diluted Income per Share (EPS) | $0.12 |
Shareholder Letter
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Dear Fellow Shareholders,
I am proud to share with you our financial and operational performance for the first quarter of fiscal 2025. This quarter marked a transformative period for TAG, reinforcing our position as an emerging leader in the renewable energy sector and setting the stage to accelerate growth in the coming quarters.
First Quarter Fiscal 2025 Financial Performance
We delivered robust results for the quarter, achieving revenue of $14.8 million - significantly exceeding our total pro forma revenue* of $9.6 million for all of fiscal 2024. Our gross margin of 51% highlighted strong unit economics, and we posted both operating income and net income of $7.3 million with EPS of $0.12, underscoring the profit potential of our innovative business model.
Looking Ahead
We are just getting started. The early performance of our Non-FICO-Driven Residential PPA shows our potential with an annualized run rate for signed contracts of over $100 million. We believe our continued introduction of new, innovative financing solutions, strategic acquisitions and key industry partnerships will drive meaningful revenue and earnings growth in the quarters ahead. We remain focused on expanding the TAG GRID, optimizing our capital efficiency and delivering sustained shareholder value.
Key upcoming milestones to look for include:
- Introduction of our commercial financing solutions.
- FINRA approval of our application for a name and ticker change.
- Submission of our application to uplist to the OTCQB.
- Monetization of our ITCs to enhance cash flow.
Recent Highlights
Momentum in Residential Solar Financing
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Our proprietary financing solutions were the driver behind our first quarter's results. Since launching our non-FICO-driven residential PPA nationwide in September, through the end of our first quarter, we signed 475 projects, totaling nearly $37 million in contract value, which will generate $29 million in TAG-owned notes and almost $14 million in investment tax credits (ITCs) that we can monetize upon completion of these projects. In a complementary move, we launched our Non-FICO Driven Residential Lease, enabling access to solar energy in all 50 states, even in markets where PPAs are not permitted.
Furthermore, our introduction of a groundbreaking 30-year residential solar loan with no dealer fees will start to ramp in 2025, positioning TAG GRID members with a powerful tool to accelerate customer acquisition and project completion while driving quicker cash flows for TAG and its partners.
Expanding Our Commercial Solar Footprint
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Commercial solar represents a major growth opportunity, and we took strategic steps in the first quarter and early in the second quarter to expand our footprint. Our acquisition of Renewable Energy Products Manufacturing Corp. (REPM) in January will serve as the backbone for our commercial solar business. This acquisition brings proven operators and strengthens our presence in commercial solar while integrating best-in-class technology and project execution capabilities.
In the first quarter, we signed an exclusive commercial finance partnership with Apollo Solar, which positions us as the preferred financing partner for Apollo's Catalyst Network of over 140 EPCs (engineering, procurement and construction contractors) and solar industry professionals.
Strengthening Our Financial Position
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To support our rapid expansion, earlier this month, we secured a $10 million equity line of credit commitment from ClearThink Capital Partners. This provides us with a potential source of capital to accelerate our organic growth and execute on our strategic initiatives while maintaining flexibility over the timing and amount of capital accessed.
Launch of New Website
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We also just launched our new business and investor relations website, designed to provide enhanced access to information about TAG's innovative solar financing solutions and expanding portfolio of services. The site features a streamlined layout, detailed insights into TAG's proprietary financial products, and dedicated resources for investors, partners, and solar industry professionals. This launch reflects TAG's commitment to transparency and growth as it continues to scale its impact in the renewable energy sector.
Thank you for your continued support and trust in The Awareness Group. We are excited about the path ahead and remain committed to executing on our vision to revolutionize renewable energy financing.
Sincerely,
Pablo Diaz
Chairman and CEO
The Awareness Group
*Pro-forma revenue includes the results of the combined Freedom Holdings and The Awareness Group as if the the two companies had been merged for the entire fiscal year 2024, as reported in the appendix to the Company's 2024 10-k filed with the SEC.
About TAG
At The Awareness Group (TAG), we're not just part of the alternative energy revolution-we're leading it. Fueled by innovation, TAG is setting new benchmarks with the TAG GRID, a groundbreaking national platform that delivers a unique, differentiated program of solar services and financing solutions to its members for both commercial and residential projects. By managing the project from concept to installation, TAG aims to bring a world-class level of service to all members of the TAG GRID and their customers as the guarantor for all projects, therefore bringing higher levels of satisfaction to service providers and end customers. Our growth engine, TAG Financial, encompasses two divisions. TAG Financial Services (TFS) empowers TAG GRID members by managing the front end of the process, working with sales organizations, providing access to a suite of exclusive TAG and third-party lending products and cutting-edge fintech solutions. With TAG Capital, our dynamic in-house fund management division, we're taking it further-directly funding proprietary lending products while maximizing the value of our loan portfolios and investment tax credits (ITCs). As organic growth drives our core strategy, we're also accelerating our expansion through strategic acquisitions, using a proven strategy to secure forward-thinking companies across the alternative energy landscape that will drive incremental revenue, bring unique offerings and solidify TAG's place as the guarantor of all TAG GRID projects. Combined, these initiatives are propelling TAG forward, delivering exceptional value for our customers, employees, partners and investors. With TAG, the future of energy is here and now.
For more information, please visit us at https://www.awarenessgroup.llc/
Follow us on X: @AwarenessGroup1
Follow us on LinkedIn: Awareness Group on LinkedIn
Forward-Looking Statements
In this press release, all statements that are not purely about historical facts, including, but not limited to, those in which we use the words "believe," "anticipate," "expect," "plan," "intend," "estimate, "target" and similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. While these forward-looking statements represent our current judgment of what may happen in the future, actual results may differ materially from the results expressed or implied by these statements due to numerous important factors, including, but not limited to, those described in our most recent report on SEC Form 10-K (under the headings "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations"), which may be revised or supplemented in subsequent reports on SEC Forms 10-Q and 8-K. We are under no obligation, and expressly disclaim any obligation, to update the forward-looking statements in this press release, whether as a result of new information, future events or otherwise.
TAG Investor Relations and Media Contact:
Brian Siegel, IRC®, M.B.A.
Senior Managing Director
Hayden IR
(346) 396-8696
brian@haydenir.com
| THE AWARENESS GROUP/FREEDOM HOLDINGS | |||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||
| December 31, | September 30, | ||||
| 2024 | 2024 | ||||
| (unaudited) | (Audited) | ||||
| ASSETS | |||||
| Current Assets: | |||||
| Cash | 121,347 | $95,815 | |||
| Marketable securities | 1,260,000 | 1,260,000 | |||
| Accounts receivable | 303,792 | 300,708 | |||
| Unbilled receivable | 16,864,211 | 8,901,056 | |||
| Investment tax credits | 1,331,000 | - | |||
| Inventory | 517,000 | 517,000 | |||
| Other current assets | 4,582 | 4,583 | |||
| Total Current Assets | 20,401,932 | 11,079,162 | |||
| Fixed assets, net | 134,717 | 141,806 | |||
| Intangible assets, net | 1,640,430 | 1,603,430 | |||
| Crypto currency tokens | 2,700,000 | 2,700,000 | |||
| Other assets | 19,821,010 | 14,746,000 | |||
| TOTAL ASSETS | $ | 44,698,089 | $ | 30,270,399 | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
| Current Liabilities | |||||
| Accrued project costs | $ | 14,294,385 | $ | 7,132,768 | |
| Credit cards payable | 3,677 | 1,980 | |||
| Other accrued expenses | 69,019 | 102,426 | |||
| Total Current Liabilities | 14,367,081 | 7,237,174 | |||
| Non-Current Liabilities | |||||
| Notes payable | 142,413 | 136,944 | |||
| Total Non-Current Liabilities | 142,413 | 136,944 | |||
| TOTAL LIABILITIES | 14,509,494 | 7,374,118 | |||
| Stockholders' Equity | |||||
| Preferred Stock, $0.0001 par value, 100,000,000 shares authorized, 2,000,000 and 2,000,000 shares issued and outstanding, respectively. | 200 | 200 | |||
| Common stock, $0.0001 par value, 500,000,000 shares authorized, 58,608,825 and 58,608,825 shares issued and outstanding respectively. | 5,861 | 5,861 | |||
| Additional paid-in capital | 39,470,278 | 39,470,278 | |||
| Accumulated deficit | (2,631,517) | (9,950,869) | |||
| Total Stockholders' Equity | 36,844,822 | 29,525,470 | |||
| Non-controlling interests | (6,656,227) | (6,629,189) | |||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 44,698,089 | $ | 30,270,399 | |
| THE AWARENESS GROUP/FREEDOM HOLDINGS | |||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||
| (unaudited) | |||||
| For the Three Months | |||||
| Ended December 31, | |||||
| 2024 | 2023 | ||||
| Revenues | $ | 14,793,455 | $ | 0 | |
| Costs of goods sold | 7,252,317 | 0 | |||
| Gross Profit | 7,541,138 | 0 | |||
| Operating Expenses | |||||
| Professional fees | 0 | 295 | |||
| Selling, general and administrative expenses | 226,806 | 65 | |||
| Total operating expenses | 226,806 | 360 | |||
| Net income (loss) from operations | 7,314,332 | (360) | |||
| Other income (expenses) | |||||
| Other income | 5,020 | 0 | |||
| Interest expense | 0 | (2,894) | |||
| Net income attributable to non-controlling interests | (27,038) | 0 | |||
| Net income (loss) prior to income taxes | $ | 7,292,314 | ($3,254) | ||
| Income tax provision (benefit) | 0 | 0 | |||
| Net income (loss) | $ | 7,292,314 | ($3,254) | ||
| Basic and diluted income (loss) per share | $ | 0.12 | ($0.00) | ||
| Weighted average number of shares outstanding | 58,608,825 | 55,308,825 | |||
| THE AWARENESS GROUP/FREEDOM HOLDINGS | |||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||
| (unaudited) | |||||
| For the Three months Ended | |||||
| December 31, | |||||
| 2024 | 2023 | ||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | |||||
| Net income (loss) | $ | 7,314,332 | ($3,254) | ||
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operations: | |||||
| Depreciation | 7,090 | ||||
| Non-controlling interest | (27,038) | ||||
| Change in assets and liabilities: | |||||
| Accounts receivable | (3,084) | ||||
| Unbilled receivables | (7,963,155) | ||||
| Investment tax credits | (1,331,000) | ||||
| Inventory | (3,000) | ||||
| Other assets | (5,075,010) | ||||
| Accrued project costs | 7,161,617 | ||||
| Credit card payables | 1,697 | ||||
| Other accrued expenses | (27,012) | 2,894 | |||
| Accounts payable and accruals | (135) | ||||
| Net cash provided by (used in) operations | 57,063 | (495) | |||
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||||
| Increase in intangible assets | (37,000) | ||||
| Net cash (used in) investing activities | (37,000) | 0 | |||
| CASH FLOWS FROM FINANCING ACTIVITIES: | |||||
| Proceeds from notes payable | 5,469 | ||||
| Net cash provided by financing activities | 5,469 | 0 | |||
| Net change in cash and cash equivalents | 25,532 | (495) | |||
| Cash and cash equivalents, beginning of period | 95,815 | 588 | |||
| Cash and cash equivalents, end of period | $ | 121,347 | $ | 93 | |
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