SolarMax Technology

1 serious warning sign in SolarMax Technology’s filings.

We look for five warning signs: doubt it can keep going, weak checks on its own accounts, a notice that its past accounts can't be relied on, a change of auditor, and one customer bringing in a big share of sales. We don't check lawsuits, investigations or debt yet.

We checked the auditor's report, internal controls, restatement notices, auditor changes and big customers in the 10-K filed 6 Apr 2026, plus the 10-Q filed 8 Oct 2026 and 10 later 8-Ks.

• Doubt it can keep going

  Serious

  The company or its auditor warned it may not have enough money to last the next year.

  “The Company’s history of net losses and negative cash flow from operating activities, including its net loss for the three and six months ended June 30, 2026, along with its increased accumulated deficit and stockholders’ deficit, its default on payments of principal and interest since 2023 on convertible notes in the principal amount of $ 13.7 million as of June 30, 2026, and the increased difficulty in raising funds for operations due to the low price of the Company’s common stock and the fact that the market value of the Company’s common stock is below the Nasdaq continued listing requirement of $ 35.0 million raise substantial doubt about the Company's ability to continue as a going concern.”

  Show the full paragraph

  The accompanying condensed consolidated financial statements have been prepared in conformity with U.S. GAAP, which contemplate the continuation of the Company as a going concern. The Company’s history of net losses and negative cash flow from operating activities, including its net loss for the three and six months ended June 30, 2026, along with its increased accumulated deficit and stockholders’ deficit, its default on payments of principal and interest since 2023 on convertible notes in the principal amount of $ 13.7 million as of June 30, 2026, and the increased difficulty in raising funds for operations due to the low price of the Company’s common stock and the fact that the market value of the Company’s common stock is below the Nasdaq continued listing requirement of $ 35.0 million raise substantial doubt about the Company's ability to continue as a going concern. As a result of the failure of the Company to meet the $1.00 minimum bid price requirement of a closing bid price of $ 1.00 per share, the Company effected a one-for-12 reverse split of its common stock effective on August 13, 2026. The closing bid price of the Company’s common stock was at least $1.00 per share for ten consecutive business days prior to August 31, 2026. The reverse split does not affect the Company’s ability to meet the $35.0 million market price of listed securities requirement. Any decline in the market price of the Company’s common stock will adversely affect the market value of listed securities.

  From the 10-Q filed 8 October 2026, Part I, Item 1. Financial Statements. Read it in the filing

• One big customer

  Worth knowing

  One customer brings in a big share of sales: 66.1% last year. Losing that customer would hurt.

  “For the years ended December 31, 2025, one customer, Longfellow, accounted for $60.2 million, or 66.1%, of revenues, $9.4 million, or 72.4%,of accounts receivable, and $45.8 million, or 99.0% of contract assets (see Note 8).”

  From the 10-K filed 6 April 2026, Item 8. Financial Statements and Notes. Read it in the filing

• It owes more than it owns on paper (negative equity). Often that's from borrowing to buy back shares.

Whether the price already reflects the risks is what the deep dive is for.