P2 Solar, Inc. SEC 10-K Report

P2 Solar, Inc., a company engaged in the construction and installation of residential and commercial rooftop and ground mount solar energy systems in Canada, has released its Form 10-K report for the fiscal year ended March 31, 2025. The report provides a comprehensive overview of the company's financial performance, business operations, strategic initiatives, and the challenges it faces in the competitive solar energy market.

Financial Highlights

• Revenue: The company reported sales of $26,382 for the year ended March 31, 2025, a significant decrease from $166,288 in the previous year, primarily due to changes in sales strategy.
• Gross Profit: Gross profit decreased to $22,003 in 2025 from $66,975 in 2024, mainly due to a reduction in sales volume.
• Operating Loss: Operating loss improved slightly to $(103,326) in 2025 from $(114,941) in 2024, attributed to a decrease in operating expenses.
• Net Loss: The net loss for the year was $(34,492), a significant improvement from $(148,426) in 2024, largely due to gains on loan settlements.
• Net Loss Per Share (Basic and Diluted): The net loss per share remained unchanged at $(0.00) for both 2025 and 2024, reflecting the impact of share issuances and net loss.

Business Highlights

• Business Focus: P2 Solar, Inc. is primarily engaged in the construction and installation of residential and commercial rooftop and ground mount solar energy systems in Canada, with plans to expand to other regions in Canada and potentially certain U.S. states within the next two years.
• Recent Acquisition: On February 22, 2023, P2 Solar acquired Futricity Solar, Inc., a company specializing in the installation of rooftop and ground mount solar systems, which has become a wholly owned subsidiary.
• Sales Units: During the fiscal year ending March 31, 2024, the company completed 112 KW of solar installations, reflecting its operational capacity in the solar installation market.
• Geographical Performance: The company's operations are currently concentrated in British Columbia, Canada, but there are intentions to expand to other Canadian regions and select U.S. states.
• Sales and Marketing Strategy: P2 Solar's sales strategy includes educational seminars aimed at builders, contractors, and industry professionals to promote solar technology, alongside direct sales to residential homeowners and small commercial enterprises primarily through customer referrals.
• Competition: The company faces competition from other solar installation companies, but management believes no competitor holds more than 10% of the market share in the areas where P2 Solar operates.
• Supply Chain: P2 Solar sources solar equipment from various manufacturers in North America and Asia, ensuring no reliance on a single supplier. The company is also negotiating to import proprietary panels from a manufacturer in India.
• Government Regulations: The company is licensed as an electrical contractor in British Columbia and must obtain necessary licenses to operate in other jurisdictions. The Canadian government offers various incentives for solar energy projects, which could benefit P2 Solar's operations.
• Seasonality: The solar energy market experiences seasonal fluctuations, with a decrease in installations during cold and snowy winters, impacting the timing of orders.
• Future Outlook: Management is focused on expanding the solar installation business and is exploring financing options to support this growth, including raising approximately $2,000,000 for expansion efforts.

Strategic Initiatives

• Expansion through Acquisition: P2 Solar, Inc. has focused on expanding its solar installation business through the acquisition of Futricity Solar, Inc., which is expected to enhance its capabilities in rooftop solar system installations.
• Capital Management: The company has been managing its capital through a combination of equity investments, shareholder loans, and credit facilities. During the year ended March 31, 2025, P2 Solar issued 20,000,000 shares of common stock for the settlement of a $400,000 note payable and 39,062,500 shares for the repayment of a director loan and accrued management fees. The company has also reduced its working capital deficiency significantly by decreasing promissory notes payable and convertible notes payable.
• Future Outlook: P2 Solar, Inc. anticipates raising additional capital through the issuance of convertible preferred shares to support its business expansion. The company is hopeful about obtaining financing from various groups and is exploring other funding sources to meet its financial requirements. However, there is no guarantee of success in raising the necessary capital, and the company may need to reduce operations or liquidate assets if additional funds are not secured.

Challenges and Risks

• Limited Operating History: The company faces significant challenges due to its limited operating history in the solar installation industry, which may hinder its ability to accurately evaluate its business and prospects.
• Dependence on Key Personnel: The company is highly dependent on its Chief Executive Officer, Raj-Mohinder Gurm, for managing its business operations, and the loss of his services could adversely affect the company.
• Financial Risks: The company faces substantial financial risks, including doubts about its ability to continue as a going concern due to operating losses and working capital deficiencies. The auditors have expressed doubt about the company's ability to continue as a going concern, and if it fails to generate significant revenue or secure financing, it may have to cease operations.
• Competitive Industry: The company operates in a highly competitive industry with no barriers to entry, facing competition from companies with greater resources.
• Construction and Regulatory Risks: The company is subject to risks associated with construction, cost overruns, delays, and regulatory compliance, which could adversely affect its business. Additionally, the company is concentrated in British Columbia, making it susceptible to region-specific disruptions.
• Regulatory Risks: Regulatory risks include the potential reduction or elimination of government subsidies and incentives for solar electricity applications, which could reduce demand for solar power systems. The company also faces risks from potential adverse changes in government regulations and the need to comply with a growing number of regulations pertaining to solar energy and consumer financing industries.
• Market Risks: The company is exposed to market risks, including fluctuations in interest rates, which could increase the cost of capital and impact consumer purchasing behavior. Additionally, the company faces risks from foreign currency exchange rate fluctuations, which may adversely affect its financial results.

SEC Filing: P2 Solar, Inc. [ PTOS ] - 10-K - Jul. 16, 2025