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Section 1: 8-K/A

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K/A

(Amendment No. 1)

 

CURRENT REPORT

Pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): November 22, 2019 (November 12, 2019)

 

THE PECK COMPANY HOLDINGS, INC.

(Exact name of registrant as specified in its charter)

 

Delaware   001-37707   47-2150172
(State or other jurisdiction of
incorporation or organization)
  (Commission
File Number)
  (I.R.S. Employer
Identification Number)

 

4050 Williston Road, #511

South Burlington, Vermont

  05403
(Address of principal executive offices)   (Zip Code)

 

Registrant’s telephone number, including area code: (802) 658-3378

 

Not Applicable

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

[  ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
   
[  ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
   
[  ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
   
[  ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class   Trading Symbol(s)   Name of each exchange on which registered
Common Stock, $0.0001 par value per share   PECK   Nasdaq Capital Market

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company [X]

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [  ]

 

 

 

   
 

 

Explanatory Note

 

The purpose of this Current Report on Form 8-K/A (the “Form 8-K/A”) is to amend the Current Report on Form 8-K of The Peck Company Holdings, Inc. (the “Company”), filed with the U.S. Securities and Exchange Commission (the “SEC”) on November 12, 2019 (the “Original Form 8-K”), in order to update the press release of the Company, dated November 12, 2019 (the “Original Press Release”), incorporated by reference as Exhibit 99.1 to the Original Form 8-K.

 

   
 

 

Item 2.02 Results of Operations and Financial Condition.

 

On November 12, 2019, the Company issued the Original Press Release announcing its financial and operational results for the third quarter ended September 30, 2019, which was attached to the Original Form 8-K as Exhibit 99.1 and was incorporated therein by reference.

 

On November 22, 2019, the Company issued a press release (the “Updating Press Release”) updating such previously reported results in order to reclassify certain due to/due from stockholder agreements in the Original Press Release to present the net financial balances at September 30, 2019 and to modify the condensed statement of changes in stockholders’ equity (unaudited) in the Original Press Release for simplification purposes. Such reclassified and modified information was subsequently included in the Company’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2019, filed with the SEC on November 19, 2019. The Company is filing this Form 8-K/A to update the Company’s results for the third quarter in the Original Press Release.

 

In accordance with General Instruction B.2 of Form 8-K, the information in this Form 8-K/A (including Exhibit 99.1) is being “furnished,” and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference in any filing made by the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.

 

Forward-Looking Statements

 

Exhibit 99.1 contains, and may implicate, forward-looking statements regarding the Company, and includes cautionary statements identifying important factors that could cause actual results to differ materially from those anticipated.

 

Item 9.01 Financial Statements and Exhibits.

 

(d) Exhibits

 

99.1 Press Release of The Peck Company Holdings, Inc., dated November 22, 2019.

 

   
 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Dated: November 22, 2019

 

  The Peck Company Holdings, Inc.
     
  By: /s/ Jeffrey Peck
  Name: Jeffrey Peck
  Title: Chief Executive Officer

 

   
 

 

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Section 2: EX-99.1

 

The Peck Company Holdings, Inc. Reclassifies Certain Items and Simplifies Third Quarter 2019 Financial Statements Included In Its November 12, 2019 Press Release

 

SOUTH BURLINGTON, VT--(BUSINESS WIRE)-- The Peck Company Holdings, Inc. (NASDAQ:PECK), a leading commercial solar engineering, procurement and construction (“EPC”) company (the “Company”), decided upon the recommendation of its auditor to reclassify certain due to/due from stockholder agreements to present the net financial balances at September 30, 2019. In addition, the Company modified its Condensed Statement of Changes in Stockholders’ Equity (unaudited) for simplification purposes. Such information has been included in the Company’s Quarterly Report for the third quarter ended September 30, 2019 (the “Form 10-Q”), but was not reflected in the financial statements included in the press release dated November 12, 2019, which reported the Company’s third quarter 2019 results.

 

There were no changes to the revenue or income previously reported in such press release.

 

The Peck Company Holdings, Inc.

Condensed Balance Sheets (Unaudited)

September 30, 2019 and December 31, 2018

 

  

September 30,

2019

  

December 31,

2018

 
Assets          
Current Assets:          
Cash  $28,700   $313,217 
Accounts receivable, net of allowance   7,157,760    2,054,413 
Costs and estimated earnings in excess of billings   3,427,990    718,984 
Due from stockholders   0    2,858 
Other current assets   210,852    0 
Total current assets   10,825,302    3,089,472 
           
Property and equipment:          
Building and improvements   672,727    666,157 
Vehicles   1,283,364    1,147,371 
Tools and equipment   517,601    493,760 
Solar arrays   6,386,025    6,386,025 
    8,859,717    8,693,313 
Less accumulated depreciation   (2,037,996)   (1,571,774)
    6,821,721    7,121,539 
Other Assets:          
Captive insurance investment   140,875    80,823 
Due from stockholders   0    250,000 
Cash surrender value - life insurance   279,219    224,530 
    420,094    555,353 
Total assets  $18,067,117   $10,766,364 
           
Liabilities and Stockholders’ Equity          
           
Current Liabilities:          
Accounts payable  $3,580,982   $1,495,785 
Accrued expenses   289,002    236,460 
Billings in excess of costs and estimated earnings on uncompleted contracts   826,012    180,627 
Accrued losses on contract in progress   0    9,128 
Due to stockholders   442,489    33,463 
Line of credit   5,000,000    972,524 
Current portion of deferred compensation   27,057    27,057 
Current portion of long-term debt   443,453    410,686 
Total current liabilities   10,608,995    3,365,730 
           
Long-term liabilities:          
Deferred compensation, net of current portion   96,546    116,711 
Deferred tax liability   1,527,311    0 
Long-term debt, net of current portion   2,076,750    2,212,885 
    3,700,507    2,329,596 
Commitments and contingencies          
           
Stockholders’ equity:          
Preferred stock - $0.0001 par value 1,000,000 shares authorized, 0 issued and outstanding   0    0 
Common stock - $0.0001 par value 49,000,000 shares authorized, 5,474,695 shares issued and outstanding and 3,234,301 shares issued and outstanding as of September 30, 2019 and December 31, 2018   547    323 
Additional paid-in capital   423,306    552,630 
Retained earnings   3,333,762    4,518,085 
    3,757,615    5,071,038 
   $18,067,117   $10,766,364 

 

 
 

 

The Peck Company Holdings, Inc.

Condensed Statements of Operations (Unaudited)

For the three months and nine months ended September 30, 2019 and 2018

 

   Three Months ended   Nine Months ended 
   September 30,   September 30, 
   2019   2018   2019   2018 
                 
Earned revenue  $11,749,580   $3,991,209    21,878,170   $13,023,359 
Cost of earned revenue   10,308,936    2,885,146    17,846,681    9,882,268 
Gross profit   1,440,644    1,106,063    4,031,489    3,141,091 
                     
Warehousing and other operating expenses   294,154    182,193    1,034,965    534,279 
General and administrative expenses   967,196    380,153    1,980,886    1,225,948 
Total operating expenses   1,261,350    562,346    3,015,851    1,760,227 
Operating income   179,294    543,717    1,015,638    1,380,864 
                     
Other expenses                    
Interest expense   (54,671)   (49,785)   (158,217)   (91,639)
                     
Income before income taxes   124,623    496,932    857,421    1,289,225 
Provision for income taxes   48,468    0    1,555,330    250 
                     
Net income (loss)  $76,155   $496,932   $(697,909)  $1,288,975 
                     
Weighted average shares outstanding:                    
Basic   5,474,695    3,234,501    4,071,497    3,234,501 
Diluted   5,474,695    3,234,501    4,071,497    3,234,501 
                     
Income (loss) per common share:                    
Basic  $0.01   $0.15   $(0.17)  $0.40 
Diluted  $0.01   $0.15   $(0.17)  $0.40 
                     
PRO FORMA (C-corporation basis)
(Note 1m)
                    
Income tax expense  $48,468   $137,750   $237,677   $357,373 
Net Income   76,155    359,182    619,744    931,852 
                     
Weighted average shares outstanding                    
Basic   5,474,695    3,234,501    4,071,497    3,234,501 
Diluted   5,474,695    3,234,501    4,071,497    3,234,501 
                     
Income (loss) per common share:                    
Basic  $0.01   $0.11   $0.15   $0.29 
Diluted  $0.01   $0.11   $0.15   $0.29 

 

 
 

 

The Peck Company Holdings, Inc.

Condensed Statement of Changes in Stockholders’ Equity (Unaudited)

September 30, 2019

 

       Additional         
   Common Stock   Paid-In   Retained     
   Shares   Amounts   Capital   Earnings   Total 
                     
Balance as of January 1, 2019   3,234,501   $323   $552,630   $4,518,085   $5,071,038 
                          
Cash distributions to stockholders in 2019 prior to June 20   0    0    0    (486,414)   (486,414)
                          
Conversion of Rights to common shares   420,712    42    0    0    42 
                          
Combination with Peck Electric Co.   1,819,482    182    (182)   0    0 
                          
Recapitalization costs   0    0    (128,918)   0    (128,918)
                          
Net (loss)   0    0    0    (774,064)   (774,064)
                          
Ending Balance, June 30, 2019   5,474,695    547    423,530    3,257,607    3,681,684 
                          
Recapitalization costs   0    0    (224)          
                          
Net Income                  76,155    76,155 
Ending Balance, September 30, 2019   5,474,695   $547   $423,306   $3,333,762   $3,757,615 

 

The Peck Company Holdings, Inc.

Condensed Statement of Changes in Stockholders’ Equity (Unaudited)

September 30, 2018

 

       Additional         
   Common Stock   Paid-In   Retained     
   Shares   Amounts   Capital   Earnings   Total 
                     
Balance as of January 1, 2018   200   $6,000   $546,953   $3,955,942   $4,508,895 
                          
Net income   0    0    0    787,793    793,793 
                          
Ending Balance, June 30, 2018   200    6,000    546,953    4,743,735    5,296,688 
                          
Net Income                  496,932    496,932 
Ending Balance, September 30, 2018   200   $6,000   $546,953   $5,240,667   $5,793,620 

 

 
 

 

The Peck Company Holdings, Inc.

Condensed Statements of Cash Flows (Unaudited)

For the Nine Months Ended September 30, 2019 and 2018

 

  

September 30,

2019

  

September 30,

2018

 
Cash flows from operating activities          
Net (loss) income  $(697,909)  $1,288,975 
           
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:          
Depreciation   466,222    296,125 
Provision for deferred income taxes   1,527,311    0 
           
Changes in operating assets and liabilities:          
Accounts receivable   (5,103,347)   391,852 
Prepaid expenses   (210,852)   (63,340)
Costs and estimated earnings in excess of billings   (2,709,006)   404,099 
Cash surrender value - life insurance   (54,689)   0 
Accounts payable   2,085,197    (1,290,484)
Accrued expenses   52,542    (176,957)
Billings in excess of costs and estimated earnings on uncompleted contracts   645,385    (254,183)
Accrued losses on contract in progress   (9,128)   0 
Due to stockholders   438,070    0 
Deferred compensation   (20,165)   0 
Net cash (used in) provided by operating activities   (3,590,369)   596,087 
           
Cash flows from investing activities:          
Purchase of solar arrays and equipment   (39,243)   (2,587,041)
Loan to stockholder   (43,000)   (250,000)
Investment in captive insurance   (60,063)   (43,340)
Net cash used in investing activities   (142,295)   (2,880,381)
           
Cash flows from financing activities:          
Net borrowings on line of credit   4,027,476    1,233,836 
Proceeds from long-term debt   0    645,525 
Payments of long-term debt   (230,629)   0 
Recapitalization costs paid   (129,100)   0 
Stockholder distributions paid   (219,600)   (137,494)
Net cash provided by financing activities   3,448,147    1,741,867 
Net decrease in cash   (284,517)   (542,427)
Cash, beginning of period   313,217    760,781 
Cash, end of period  $28,700   $218,354 
           
Supplemental disclosure of cash flow information          
           
Cash paid during the year for:          
Interest  $158,217   $91,639 
Income taxes   5,859    250 
Supplemental disclosure of non-cash investing and financing activities          
           
2019          
Four vehicles were purchased and financed for $127,161.          
The Company accrued S-corporation distributions which have not been paid of $266,814.          
           
2018          
One vehicle was purchased and financed for $39,790          

 

The accompanying notes found in the recently filed Form10-Q are an integral part of these unaudited condensed consolidated financial statements.

 

 
 

 

About The Peck Company Holdings, Inc.

 

Headquartered in South Burlington, VT, The Peck Company Holdings, Inc. is a 2nd-generation family business founded in 1972 and rooted in values that align people, purpose, and profitability. Ranked by Solar Power World as one of the leading commercial solar contractors in the Northeastern United States, the Company provides EPC services to solar energy customers for projects ranging in size from several kilowatts for residential properties to multi-megawatt systems for large commercial and utility scale projects. The Company has installed over 125 megawatts worth of solar systems since it started installing solar in 2012 and continues its focus on profitable growth opportunities. Please visit www.peckcompany.com for additional information.

 

IR Contact:

 

J. Charles Assets

Jay Hetrick

407-627-0169

[email protected]

JCharlesAssets.com

 

 
 

 

 

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