BESSHIGH SIGNALFINANCIAL10-K

BESS shows substantial deterioration in operating performance with meaningfully higher losses and sharp declines in gross profit despite modest asset growth.

The company's financial trajectory has worsened considerably, with operating losses expanding substantially while gross profit declined dramatically, indicating significant operational challenges. As a development-stage company that has not commenced commercial operations, the deteriorating financial metrics combined with the need for external funding support suggest heightened execution risk for their 2 GW pipeline of battery storage projects.

Comparing 2026-03-31 vs 2025-05-30View on EDGAR →
FINANCIAL ANALYSIS

BESS experienced substantial financial deterioration with gross profit declining dramatically from $26K to just $308, while operating losses expanded meaningfully from $2.8M to $4.9M and net losses grew substantially to $5.0M. Total assets grew modestly by 17% to $27.2M, but accounts receivable fell sharply by 88% to $27K, reflecting the company's pre-revenue development stage. The overall financial picture signals a company burning through capital at an accelerated rate while still in the development phase, highlighting the critical importance of the $50M funding commitment from battery supplier RelyEZ.

FINANCIAL STATEMENT CHANGES
Interest Expense
P&L
-99.3%
$27K200

Interest expense declined — debt repayment or refinancing at lower rates improving earnings quality.

Gross Profit
P&L
-98.8%
$26K308

Gross margin compression — rising input costs, pricing pressure, or unfavorable product mix shift.

Accounts Receivable
Balance Sheet
-88.3%
$232K$27K

Receivables declined — improved collection efficiency or conservative revenue recognition.

Net Income
P&L
-80.3%
-$2.8M-$5.0M

Net income declined 80.3% — review whether driven by operations, interest costs, or non-recurring items.

Operating Income
P&L
-78.7%
-$2.8M-$4.9M

Operating income deteriorated sharply — investigate whether driven by one-time charges or structural cost issues.

Total Assets
Balance Sheet
+17%
$23.3M$27.2M

Asset base grew 17% — expansion through organic growth, acquisitions, or capital deployment.

LANGUAGE CHANGES
NEW — 2026-03-31
PRIOR — 2025-05-30
ADDED
At March 31, 2026, there were 7,072,573 shares of the registrant s common stock outstanding (the only class of voting common stock).
The reverse split and name change took effect on the OTC Markets on February 7, 2025 and the Company s symbol change to BESS took effect on March 3, 2025.
We are a development-stage company with the strategic objective of developing, commercializing, and operating a diversified portfolio of battery energy storage systems ( BESS ) and solar energy projects across the United States.
As of December 31, 2025, we have not commenced commercial operations and have not generated revenue.
We are currently in the mid-stage of our development lifecycle and are actively advancing approximately a 2 GW pipeline of BESS projects.
To support this growth, one of our battery suppliers, RelyEZ, has committed up to $50 million, including an initial $10 million funding to a joint venture.
Over the next twelve months, we intend to progress a portion of our development pipeline to construction-ready status, initiate procurement and site preparation on priority projects, and expand internal capabilities across development, engineering, and execution.
We expect these activities to be funded through a combination of available cash, the net proceeds of the February 2026 public offering, project-level funding arrangements under the RelyEZ / GridSpan joint venture for qualifying projects, potential tax equity financing for a portion of capital expenditures, and project-level long-term debt financing, subject to availability and finalization of definitive arrangements.
Concurrently, we will work to secure interconnection agreements, finalize site control and permitting, and engage prospective offtakers.
We expect our customers will include traditional trading houses (e.g., Goldman Sachs, BP, Shell), commercial and industrial (C I) entities, and utilities.
REMOVED
At May 21, 2025, there were 5,139,704 shares of the registrant s common stock outstanding (the only class of voting common stock).
According to Energy Storage News in March 2024, BESS installations surged with a 96% increase in cumulative capacity in 2023.
Energy Information Administration (EIA) report in January 2024, the U.S.
battery storage capacity has been growing since 2021 and could increase by 89% by the end of 2024 if developers bring all of the energy storage systems they have planned on line by their intended commercial operation dates.
battery capacity to more than 30 gigawatts (GW) by the end of 2024, a capacity that would exceed those of petroleum liquids, geothermal, wood and wood waste, or landfill gas.
In June 2024, Bloomberg data revealed electricity demands from AI data centers are outstepping the available power supply in many parts of the world as AI wreaks havoc on global power systems.
A report released in May 2024 by Aurora Energy Research on the use of Battery Energy Storage Systems (BESS) in the ERCOT Market stated that these facilities have played a crucial role in Texas energy supply by providing dependable and affordable power during periods of high demand.
In February 2024, Canary Media issued a report stating that Texas will add more grid batteries in any other states in 2024.
Due to its affordable land and thriving market, which are highly desirable for energy storage companies, the state of Texas is expected to surpass California in battery installations this year.
In May 2024, the media company added that Texas rolled into 2024 with some 5.1 gigawatts of energy storage online, second only to mighty California.
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