spwr-20230402
trueSUNPOWER CORP000086777312/312023Q1In particular, the unaudited condensed consolidated financial statements as of and for the first quarter of fiscal year 2023 and 2022 have been restated to reflect the corrections related to the value of consignment inventory of microinverter (“MI”) components at certain third-party locations as further described below, along with other immaterial items as of and for the first quarter of fiscal year 2023 and 2022.10.03275680.0401552http://fasb.org/us-gaap/2022#OtherLiabilitiesNoncurrenthttp://fasb.org/us-gaap/2022#OtherLiabilitiesNoncurrenthttp://fasb.org/us-gaap/2022#PrepaidExpenseAndOtherAssetsCurrenthttp://fasb.org/us-gaap/2022#AccruedLiabilitiesCurrentAndNoncurrenthttp://fasb.org/us-gaap/2022#RevenueFromContractWithCustomerExcludingAssessedTax00008677732023-01-022023-04-020000867773dei:FormerAddressMember2023-01-022023-04-0200008677732023-04-28xbrli:shares00008677732023-04-02iso4217:USD00008677732023-01-01iso4217:USDxbrli:shares00008677732022-01-032022-04-030000867773us-gaap:CommonStockMember2023-01-010000867773srt:ScenarioPreviouslyReportedMemberus-gaap:CommonStockMember2023-01-010000867773srt:ScenarioPreviouslyReportedMemberus-gaap:AdditionalPaidInCapitalMember2023-01-010000867773srt:ScenarioPreviouslyReportedMemberus-gaap:TreasuryStockCommonMember2023-01-010000867773srt:ScenarioPreviouslyReportedMemberus-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-010000867773us-gaap:RetainedEarningsMembersrt:ScenarioPreviouslyReportedMember2023-01-010000867773srt:ScenarioPreviouslyReportedMemberus-gaap:ParentMember2023-01-010000867773srt:ScenarioPreviouslyReportedMemberus-gaap:NoncontrollingInterestMember2023-01-010000867773srt:ScenarioPreviouslyReportedMember2023-01-010000867773us-gaap:RetainedEarningsMembersrt:RestatementAdjustmentMember2023-01-010000867773srt:RestatementAdjustmentMemberus-gaap:ParentMember2023-01-010000867773srt:RestatementAdjustmentMember2023-01-010000867773us-gaap:AdditionalPaidInCapitalMember2023-01-010000867773us-gaap:TreasuryStockCommonMember2023-01-010000867773us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-010000867773us-gaap:RetainedEarningsMember2023-01-010000867773us-gaap:ParentMember2023-01-010000867773us-gaap:NoncontrollingInterestMember2023-01-010000867773us-gaap:RetainedEarningsMember2023-01-022023-04-020000867773us-gaap:ParentMember2023-01-022023-04-020000867773us-gaap:NoncontrollingInterestMember2023-01-022023-04-020000867773us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-022023-04-020000867773us-gaap:CommonStockMember2023-01-022023-04-020000867773us-gaap:AdditionalPaidInCapitalMember2023-01-022023-04-020000867773us-gaap:TreasuryStockCommonMember2023-01-022023-04-020000867773spwr:CISolutionsMember2023-01-022023-04-020000867773us-gaap:CommonStockMember2023-04-020000867773us-gaap:AdditionalPaidInCapitalMember2023-04-020000867773us-gaap:TreasuryStockCommonMember2023-04-020000867773us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-04-020000867773us-gaap:RetainedEarningsMember2023-04-020000867773us-gaap:ParentMember2023-04-020000867773us-gaap:NoncontrollingInterestMember2023-04-020000867773us-gaap:CommonStockMember2022-01-020000867773srt:ScenarioPreviouslyReportedMemberus-gaap:CommonStockMember2022-01-020000867773srt:ScenarioPreviouslyReportedMemberus-gaap:AdditionalPaidInCapitalMember2022-01-020000867773srt:ScenarioPreviouslyReportedMemberus-gaap:TreasuryStockCommonMember2022-01-020000867773srt:ScenarioPreviouslyReportedMemberus-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-020000867773us-gaap:RetainedEarningsMembersrt:ScenarioPreviouslyReportedMember2022-01-020000867773srt:ScenarioPreviouslyReportedMemberus-gaap:ParentMember2022-01-020000867773srt:ScenarioPreviouslyReportedMemberus-gaap:NoncontrollingInterestMember2022-01-020000867773srt:ScenarioPreviouslyReportedMember2022-01-020000867773us-gaap:RetainedEarningsMembersrt:RestatementAdjustmentMember2022-01-020000867773srt:RestatementAdjustmentMemberus-gaap:ParentMember2022-01-020000867773srt:RestatementAdjustmentMember2022-01-020000867773us-gaap:AdditionalPaidInCapitalMember2022-01-020000867773us-gaap:TreasuryStockCommonMember2022-01-020000867773us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-020000867773us-gaap:RetainedEarningsMember2022-01-020000867773us-gaap:ParentMember2022-01-020000867773us-gaap:NoncontrollingInterestMember2022-01-0200008677732022-01-020000867773us-gaap:RetainedEarningsMember2022-01-032022-04-030000867773us-gaap:ParentMember2022-01-032022-04-030000867773us-gaap:NoncontrollingInterestMember2022-01-032022-04-030000867773us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-032022-04-030000867773us-gaap:CommonStockMember2022-01-032022-04-030000867773us-gaap:AdditionalPaidInCapitalMember2022-01-032022-04-030000867773us-gaap:TreasuryStockCommonMember2022-01-032022-04-030000867773us-gaap:CommonStockMember2022-04-030000867773us-gaap:AdditionalPaidInCapitalMember2022-04-030000867773us-gaap:TreasuryStockCommonMember2022-04-030000867773us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-04-030000867773us-gaap:RetainedEarningsMember2022-04-030000867773us-gaap:ParentMember2022-04-030000867773us-gaap:NoncontrollingInterestMember2022-04-0300008677732022-04-030000867773spwr:HoldcoMember2022-09-12xbrli:pure0000867773spwr:RevolverAndTermLoanFacilityMember2023-10-010000867773srt:ScenarioForecastMemberspwr:RevolverAndTermLoanFacilityMember2023-12-080000867773srt:ScenarioForecastMemberspwr:RevolverAndTermLoanFacilityMember2023-12-082023-12-080000867773spwr:TermLoanFacilityWithCreditSuisseAGMemberus-gaap:LineOfCreditMember2023-10-01spwr:segment0000867773spwr:InventoryRelatedAdjustmentsMembersrt:RestatementAdjustmentMember2023-01-022023-04-020000867773spwr:InventoryRelatedAdjustmentsMembersrt:RestatementAdjustmentMember2023-04-020000867773spwr:InventoryRelatedAdjustmentsMembersrt:RestatementAdjustmentMember2022-01-032022-04-030000867773spwr:InventoryRelatedAdjustmentsMembersrt:RestatementAdjustmentMember2022-04-030000867773spwr:FinancialStatementPresentationAdjustmentsMembersrt:RestatementAdjustmentMember2023-01-022023-04-020000867773spwr:FinancialStatementPresentationAdjustmentsMembersrt:RestatementAdjustmentMember2022-01-032022-04-030000867773srt:RestatementAdjustmentMemberus-gaap:SegmentDiscontinuedOperationsMember2023-01-022023-04-020000867773srt:RestatementAdjustmentMemberspwr:TimingOfRevenueRecognitionForCertainRevenueContractsMember2023-01-022023-04-020000867773srt:RestatementAdjustmentMemberspwr:TimingOfRevenueRecognitionForCertainRevenueContractsMember2023-01-010000867773srt:ScenarioPreviouslyReportedMember2023-04-020000867773srt:RestatementAdjustmentMember2023-04-020000867773srt:ScenarioPreviouslyReportedMember2023-01-022023-04-020000867773srt:RestatementAdjustmentMember2023-01-022023-04-020000867773srt:ScenarioPreviouslyReportedMember2022-01-032022-04-030000867773srt:RestatementAdjustmentMember2022-01-032022-04-030000867773srt:ScenarioPreviouslyReportedMember2022-04-030000867773srt:RestatementAdjustmentMember2022-04-030000867773spwr:TotalEnergiesMemberspwr:TenderOfferAgreementMember2011-06-012011-06-300000867773spwr:TotalEnergiesMemberspwr:TenderOfferAgreementMember2011-06-300000867773spwr:TotalEnergiesMemberus-gaap:PrivatePlacementMember2011-12-012011-12-310000867773spwr:TotalEnergiesMemberus-gaap:PrivatePlacementMember2011-12-310000867773spwr:ClearwayEnergyGroupMember2022-05-240000867773srt:DirectorMemberspwr:SeptemberLetterAgreementMemberspwr:GlobalInfrastructurePartnersGIPMember2022-09-12spwr:director0000867773spwr:SeptemberLetterAgreementMemberspwr:GlobalInfrastructurePartnersGIPMember2022-09-120000867773spwr:TotalEnergiesMember2023-01-022023-04-020000867773spwr:CISolutionsMemberus-gaap:SegmentDiscontinuedOperationsMember2022-02-060000867773spwr:CISolutionsMemberus-gaap:SegmentDiscontinuedOperationsMember2022-05-312022-05-310000867773spwr:CISolutionsMemberus-gaap:SegmentDiscontinuedOperationsMember2022-01-032022-10-020000867773us-gaap:SubsequentEventMemberspwr:CISolutionsMember2023-04-122023-04-120000867773spwr:TotalEnergiesMemberspwr:AffiliationAgreementMember2023-01-022023-04-020000867773spwr:TotalEnergiesMemberspwr:AffiliationAgreementMember2023-04-020000867773spwr:AprilAffiliationAgreementAmendmentMember2021-04-19spwr:member0000867773srt:DirectorMemberspwr:AprilAffiliationAgreementAmendmentMember2021-04-190000867773spwr:OctoberAffiliationAgreementAmendmentMember2021-10-290000867773srt:DirectorMemberspwr:OctoberAffiliationAgreementAmendmentMember2021-10-290000867773spwr:OctoberAffiliationAgreementAmendmentMember2022-03-310000867773srt:DirectorMemberspwr:OctoberAffiliationAgreementAmendmentMember2022-03-310000867773spwr:SeptemberLetterAgreementMember2022-09-230000867773spwr:SeptemberLetterAgreementMemberspwr:GlobalInfrastructurePartnersGIPMember2022-09-260000867773spwr:A400DebenturesDue2023Memberus-gaap:ConvertibleDebtMember2015-12-310000867773spwr:TotalEnergiesMemberspwr:A400DebenturesDue2023Memberus-gaap:ConvertibleDebtMember2015-12-310000867773spwr:A400DebenturesDue2023Memberus-gaap:ConvertibleDebtMember2023-01-170000867773spwr:TotalEnergiesMemberspwr:RelatedPartyTransactionsWithTotalAndItsAffiliatesMember2023-04-020000867773spwr:TotalEnergiesMemberspwr:RelatedPartyTransactionsWithTotalAndItsAffiliatesMember2023-01-010000867773spwr:TotalEnergiesMemberspwr:DisposalGroupIncludingDiscontinuedOperationsIncomeExpensesNetMemberspwr:RelatedPartyTransactionsWithTotalAndItsAffiliatesMember2023-01-022023-04-020000867773spwr:TotalEnergiesMemberspwr:DisposalGroupIncludingDiscontinuedOperationsIncomeExpensesNetMemberspwr:RelatedPartyTransactionsWithTotalAndItsAffiliatesMember2022-01-032022-04-030000867773spwr:TotalEnergiesMemberspwr:A400DebenturesDue2023Memberspwr:RelatedPartyTransactionsWithTotalAndItsAffiliatesMemberus-gaap:InterestExpenseMember2023-01-022023-04-020000867773spwr:TotalEnergiesMemberspwr:A400DebenturesDue2023Memberspwr:RelatedPartyTransactionsWithTotalAndItsAffiliatesMemberus-gaap:InterestExpenseMember2022-01-032022-04-030000867773spwr:A400DebenturesDue2023Memberus-gaap:ConvertibleDebtMember2015-12-012015-12-310000867773spwr:A400DebenturesDue2023Memberus-gaap:ConvertibleDebtMember2020-09-012020-09-010000867773spwr:SolarPowerSystemsSalesMember2023-01-022023-04-020000867773spwr:SolarPowerSystemsSalesMember2022-01-032022-04-030000867773spwr:ComponentSalesMember2023-01-022023-04-020000867773spwr:ComponentSalesMember2022-01-032022-04-030000867773spwr:LightCommercialSalesMember2023-01-022023-04-020000867773spwr:LightCommercialSalesMember2022-01-032022-04-030000867773us-gaap:ProductAndServiceOtherMember2023-01-022023-04-020000867773us-gaap:ProductAndServiceOtherMember2022-01-032022-04-030000867773spwr:SolarPowerSystemsAndComponentsMember2023-04-0200008677732023-04-03spwr:ModulesandcomponentsMember2023-04-020000867773spwr:TestingEquipmentAndToolsMember2023-04-020000867773spwr:TestingEquipmentAndToolsMember2023-01-010000867773us-gaap:LeaseholdImprovementsMember2023-04-020000867773us-gaap:LeaseholdImprovementsMember2023-01-010000867773spwr:SolarPowerSystemsMember2023-04-020000867773spwr:SolarPowerSystemsMember2023-01-010000867773us-gaap:ComputerEquipmentMember2023-04-020000867773us-gaap:ComputerEquipmentMember2023-01-010000867773us-gaap:SoftwareDevelopmentMember2023-04-020000867773us-gaap:SoftwareDevelopmentMember2023-01-010000867773us-gaap:FurnitureAndFixturesMember2023-04-020000867773us-gaap:FurnitureAndFixturesMember2023-01-010000867773us-gaap:TransportationEquipmentMember2023-04-020000867773us-gaap:TransportationEquipmentMember2023-01-010000867773spwr:WorkInProgressMember2023-04-020000867773spwr:WorkInProgressMember2023-01-0100008677732022-01-032023-01-01spwr:score0000867773spwr:AlbatrossSoftwareLLCMember2021-10-040000867773us-gaap:DevelopedTechnologyRightsMember2023-04-020000867773us-gaap:TradeNamesMember2023-04-020000867773us-gaap:NoncompeteAgreementsMember2023-04-020000867773us-gaap:ComputerSoftwareIntangibleAssetMember2023-04-020000867773us-gaap:DevelopedTechnologyRightsMember2023-01-010000867773us-gaap:TradeNamesMember2023-01-010000867773us-gaap:NoncompeteAgreementsMember2023-01-010000867773us-gaap:ComputerSoftwareIntangibleAssetMember2023-01-010000867773us-gaap:FairValueMeasurementsRecurringMember2023-04-020000867773us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2023-04-020000867773us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2023-04-020000867773us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2023-04-020000867773us-gaap:FairValueMeasurementsRecurringMember2023-01-010000867773us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2023-01-010000867773us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2023-01-010000867773us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2023-01-010000867773us-gaap:FairValueInputsLevel3Member2023-04-020000867773us-gaap:FairValueInputsLevel2Member2023-04-020000867773us-gaap:FairValueInputsLevel1Member2023-04-020000867773us-gaap:FairValueInputsLevel3Member2023-01-010000867773us-gaap:FairValueInputsLevel2Member2023-01-010000867773us-gaap:FairValueInputsLevel1Member2023-01-010000867773us-gaap:MoneyMarketFundsMember2023-01-010000867773spwr:EquityMethodInvestmentwithFairValueOptionMember2023-01-010000867773spwr:EquityMethodInvestmentwithFairValueOptionMember2023-01-022023-04-020000867773spwr:EquityMethodInvestmentwithFairValueOptionMember2023-04-020000867773us-gaap:EquitySecuritiesMemberus-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:FairValueInputsLevel3Member2023-04-020000867773srt:MinimumMemberus-gaap:EquitySecuritiesMemberus-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputDefaultRateMember2023-04-020000867773srt:MaximumMemberus-gaap:EquitySecuritiesMemberus-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputDefaultRateMember2023-04-020000867773spwr:ValuationTechniqueResidualMembersrt:MinimumMemberus-gaap:EquitySecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputDefaultRateMember2023-04-020000867773srt:MaximumMemberspwr:ValuationTechniqueResidualMemberus-gaap:EquitySecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputDefaultRateMember2023-04-020000867773us-gaap:EquitySecuritiesMemberus-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputDefaultRateMember2023-04-020000867773spwr:ValuationTechniqueResidualMemberus-gaap:EquitySecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputDefaultRateMember2023-04-020000867773spwr:EnphaseSharesMember2018-08-092018-08-090000867773spwr:EmphaseEnergyMember2023-01-022023-04-020000867773spwr:EnphaseSharesMember2023-01-022023-04-020000867773spwr:EmphaseEnergyMember2022-01-032022-04-030000867773spwr:EnphaseSharesMember2022-01-032022-04-030000867773us-gaap:InterestRateSwapMember2023-01-022023-04-020000867773us-gaap:InterestRateSwapMemberus-gaap:NondesignatedMember2023-04-020000867773us-gaap:InterestRateSwapMemberus-gaap:InterestExpenseMember2023-01-022023-04-020000867773spwr:TotalRevenuesMember2023-01-022023-04-020000867773us-gaap:InterestRateSwapMemberspwr:TotalRevenuesMember2023-01-022023-04-020000867773us-gaap:AccountsReceivableMember2023-04-0200008677732020-08-26spwr:vendor0000867773spwr:DisposalGroupIncludingDiscontinuedOperationLiabilitiesNoncurrentMember2023-01-010000867773spwr:DisposalGroupIncludingDiscontinuedOperationLiabilitiesNoncurrentMember2023-04-020000867773spwr:CISolutionsMemberus-gaap:SegmentDiscontinuedOperationsMember2023-04-020000867773spwr:EmphaseEnergyMember2023-04-020000867773spwr:EmphaseEnergyMember2023-01-010000867773spwr:OhmConnectInvestmentMember2023-04-020000867773spwr:OhmConnectInvestmentMember2023-01-010000867773spwr:SeaBrightInvestmentMember2023-04-020000867773spwr:SeaBrightInvestmentMember2023-01-010000867773spwr:OtherEquityInvestmentsWithoutReadilyDeterminableFairValueMember2023-04-020000867773spwr:OtherEquityInvestmentsWithoutReadilyDeterminableFairValueMember2023-01-010000867773spwr:SunStrongCapitalHoldingsMember2023-04-020000867773spwr:SunStrongCapitalHoldingsMember2023-01-010000867773spwr:DoradoDevelopmentPartnersMember2023-04-020000867773spwr:DoradoDevelopmentPartnersMember2023-01-010000867773spwr:SunStrongPartnersMember2023-04-020000867773spwr:SunStrongPartnersMember2023-01-010000867773spwr:EquityMethodInvestmentwithFairValueOptionMember2023-04-020000867773spwr:EquityMethodInvestmentwithFairValueOptionMember2023-01-0100008677732022-08-012022-08-31spwr:investment0000867773spwr:SeaBrightSolarIncMember2023-01-010000867773spwr:FreedomSolarHoldingsLLCMember2023-01-010000867773spwr:EmPowerCESLLCMember2023-01-010000867773spwr:RenovaEnergyGroupMember2023-04-020000867773spwr:RenovaEnergyGroupMember2023-01-010000867773spwr:SeaBrightInvestmentMember2023-01-022023-04-020000867773spwr:SeaBrightInvestmentMember2022-01-032022-04-030000867773us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMemberspwr:DoradoDevCoMember2022-03-310000867773spwr:DoradoDevCoMember2022-03-310000867773spwr:SunStrongCapitalHoldingsMemberus-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember2023-01-022023-04-020000867773spwr:SunStrongCapitalHoldingsMemberus-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember2022-01-032022-04-030000867773spwr:SunStrongCapitalHoldingsMemberus-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember2023-04-020000867773spwr:SunStrongCapitalHoldingsMemberus-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember2023-01-010000867773spwr:TransactionsWithInvesteesMemberspwr:SunStrongAndSunStrongPartnersMember2023-04-020000867773spwr:TransactionsWithInvesteesMemberspwr:SunStrongAndSunStrongPartnersMember2023-01-010000867773spwr:TransactionsWithInvesteesMemberspwr:SunStrongAndSunStrongPartnersMember2023-01-022023-04-020000867773spwr:TransactionsWithInvesteesMemberspwr:SunStrongAndSunStrongPartnersMember2022-01-032022-04-030000867773spwr:SolarSailMemberus-gaap:VariableInterestEntityPrimaryBeneficiaryMember2023-01-022023-04-020000867773spwr:SolarSailMemberus-gaap:VariableInterestEntityPrimaryBeneficiaryMember2022-01-032022-04-030000867773spwr:SolarSailMemberus-gaap:VariableInterestEntityPrimaryBeneficiaryMember2023-04-020000867773us-gaap:RecourseMemberspwr:A400DebenturesDue2023Memberus-gaap:ConvertibleDebtMember2023-04-020000867773spwr:A400DebenturesDue2023Memberus-gaap:RecourseMember2023-01-010000867773us-gaap:RecourseMemberspwr:A400DebenturesDue2023Memberus-gaap:ConvertibleDebtMember2023-01-010000867773us-gaap:RecourseMemberspwr:RevolverAndTermLoanMember2023-04-020000867773us-gaap:RecourseMemberspwr:RevolverAndTermLoanMember2023-01-010000867773us-gaap:RecourseMemberspwr:VendorFinancingAndOtherDebtMember2023-04-020000867773us-gaap:RecourseMemberspwr:VendorFinancingAndOtherDebtMember2023-01-010000867773us-gaap:RecourseMember2023-04-020000867773us-gaap:RecourseMember2023-01-010000867773spwr:CreditSuisseLoanMemberus-gaap:NonrecourseMember2023-04-020000867773spwr:CreditSuisseLoanMemberus-gaap:NonrecourseMember2023-01-010000867773spwr:VendorFinancingAndOtherDebtMemberus-gaap:NonrecourseMember2023-04-020000867773spwr:VendorFinancingAndOtherDebtMemberus-gaap:NonrecourseMember2023-01-010000867773us-gaap:NonrecourseMember2023-04-020000867773us-gaap:NonrecourseMember2023-01-010000867773spwr:A400DebenturesDue2023Memberus-gaap:ConvertibleDebtMember2023-01-172023-01-170000867773us-gaap:LetterOfCreditMemberspwr:October2021LetterOfCreditMemberspwr:BankOfTheWestMember2021-10-310000867773us-gaap:LetterOfCreditMemberspwr:October2021LetterOfCreditMemberspwr:BankOfTheWestMember2023-04-020000867773spwr:TermLoanFacilityWithCreditSuisseAGMemberus-gaap:LineOfCreditMember2022-06-300000867773spwr:TermLoanFacilityWithCreditSuisseAGMemberus-gaap:LineOfCreditMember2023-04-020000867773spwr:TermLoanFacilityWithCreditSuisseAGMembersrt:MinimumMemberus-gaap:LineOfCreditMember2023-04-020000867773srt:MaximumMemberspwr:TermLoanFacilityWithCreditSuisseAGMemberus-gaap:LineOfCreditMember2023-04-020000867773spwr:RevolverAndTermLoanFacilityMember2022-09-120000867773spwr:RevolverAndTermLoanFacilityMember2023-01-262023-01-260000867773us-gaap:FederalFundsEffectiveSwapRateMemberspwr:RevolverAndTermLoanFacilityMember2022-09-122022-09-120000867773spwr:RevolverAndTermLoanFacilityMembersrt:MinimumMember2022-09-122022-09-120000867773srt:MaximumMemberspwr:RevolverAndTermLoanFacilityMember2022-09-122022-09-120000867773spwr:TermLoanFacilityMember2023-04-020000867773spwr:RevolverMember2023-04-020000867773spwr:RevolverAndTermLoanFacilityMember2023-04-020000867773us-gaap:LineOfCreditMember2023-04-020000867773us-gaap:CorporateJointVentureMemberspwr:MaxeonSolarMember2023-01-022023-04-020000867773us-gaap:CorporateJointVentureMemberspwr:MaxeonSolarMember2022-01-032022-04-030000867773us-gaap:CorporateJointVentureMemberspwr:MaxeonSolarMember2023-04-020000867773us-gaap:CorporateJointVentureMemberspwr:MaxeonSolarMember2023-01-010000867773us-gaap:RestrictedStockUnitsRSUMember2023-01-022023-04-020000867773us-gaap:RestrictedStockUnitsRSUMember2022-01-032022-04-030000867773spwr:A400DebenturesDue2023Member2023-04-020000867773spwr:A400DebenturesDue2023Member2023-01-022023-04-020000867773spwr:A400DebenturesDue2023Member2022-01-032022-04-030000867773us-gaap:CostOfSalesMember2023-01-022023-04-020000867773us-gaap:CostOfSalesMember2022-01-032022-04-030000867773us-gaap:ResearchAndDevelopmentExpenseMember2023-01-022023-04-020000867773us-gaap:ResearchAndDevelopmentExpenseMember2022-01-032022-04-030000867773us-gaap:SellingGeneralAndAdministrativeExpensesMember2023-01-022023-04-020000867773us-gaap:SellingGeneralAndAdministrativeExpensesMember2022-01-032022-04-030000867773us-gaap:SubsequentEventMemberspwr:FinancingCommitmentSunStrongMember2023-04-300000867773us-gaap:SubsequentEventMemberus-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMemberspwr:CACIBCreditRevolverMember2023-04-300000867773us-gaap:SubsequentEventMemberspwr:FinancingCommitmentKKRCreditMember2023-05-01
Table of Contents


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q/A

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended April 2, 2023

OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-34166


https://cdn.kscope.io/a60aeb24d8d59257087d66230b6cd648-sp2014logoa01a34.gif
SunPower Corporation
(Exact Name of Registrant as Specified in Its Charter)

Delaware94-3008969
(State or Other Jurisdiction of Incorporation or Organization)(I.R.S. Employer Identification No.)
880 Harbour Way SouthSuite 600RichmondCalifornia94804
(Address of Principal Executive Offices)(Zip Code)

(408) 240-5500
(Registrant's Telephone Number, Including Area Code)

1414 Harbour Way South, Suite 1901, Richmond, California, 94804
(Former address, if changed since last report)


_________________________________________

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of exchange on which registered
Common Stock, $0.001 par value per shareSPWRThe Nasdaq Stock Market LLC

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Sections 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  x    No  o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes  x    No  o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer Accelerated filer
Emerging growth company Non-accelerated filer
Smaller reporting company
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.   o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes  ☐ No  x

The total number of outstanding shares of the registrant’s common stock as of April 28, 2023 was 174,962,512.

1

Table of Contents

EXPLANATORY NOTE

SunPower Corporation (“we”, “SunPower” or the “Company”) is filing this Amendment No. 1 on Form 10-Q/A (“Form 10-Q/A” or “Amendment No. 1”) to amend and restate certain items in the Quarterly Report on Form 10-Q for the quarterly period ended April 2, 2023, originally filed with the Securities and Exchange Commission (the “SEC”) on May 3, 2023 (“Original Form 10-Q”). This Amendment No. 1 includes the restated condensed consolidated balance sheet as of January 1, 2023, derived from the restated consolidated financial statements included in our Annual Report on Form 10-K/A filed with the SEC on December 18, 2023, and the unaudited restated condensed consolidated financial statements as of April 2, 2023 and for the three months ended April 2, 2023 and April 3, 2022.

Restatement Background

On October 19, 2023, the Audit Committee of the Board of Directors (the “Board”) of the Company, based upon the recommendation of management, determined that our (i) audited consolidated financial statements included in our Annual Report on Form 10-K for the period ended January 1, 2023, filed with the SEC on March 10, 2023 (the “Original Form 10-K”), (ii) unaudited condensed consolidated financial statements included in our Quarterly Report on Form 10-Q for the quarterly period ended April 2, 2023, filed with the SEC on May 3, 2023 (the “Original Q1 2023 Form 10-Q”), and (iii) unaudited condensed consolidated financial statements included in our Quarterly Report on Form 10-Q for the quarterly period ended July 2, 2023, filed with the SEC on August 2, 2023 (the “Q2 2023 Form 10-Q,” and collectively, the “Affected Periods”), as well as the relevant portions of any communication which describe or are based on such consolidated financial statements, should no longer be relied upon, and that the previously issued financial statements for the Affected Periods should be restated.

As described in Item 4.02 of the Company’s Form 8-K filed with the SEC on October 24, 2023, we identified certain misstatements in prior periods’ condensed consolidated financial statements relating to the accounting treatment for the value of consignment inventory of microinverter (“MI”) components at certain third-party locations.

In connection with the preparation of the financial statements for the third quarter of fiscal year 2023, we identified that the consumption of certain MI costs in photo-voltaic module manufacturing had been inaccurately recorded starting in the first quarter of fiscal year 2022. We also identified deficiencies relating to the reconciliations of inventory at our prepositioned inventory (“PPI”) dealer locations. In light of these matters, management concluded that our internal controls around the review of certain inventory reconciliations were not operating effectively and hence was determined to be a material weakness. This material weakness resulted in a net overstatement of costs included in inventory, and a net understatement of cost of revenues for the impacted periods.

In fiscal year 2023, we identified errors related to the classification of certain expenses as cost of revenues instead of operating expenses and as continuing operations instead of discontinued operations. We identified deficiencies in the design of the controls related to the mapping of the chart of accounts for expenses to the statements of operations and we further identified an operating deficiency related to the review of the accounting evaluation regarding the classification of certain discontinued operations items within the statements of operations. These deficiencies in aggregate were determined to be a material weakness. This material weakness resulted in the misclassification of certain expenses on our condensed consolidated statements of operations for the three months ended April 2, 2023 and April 3, 2022.

This Amendment No. 1 includes the unaudited restated condensed consolidated balance sheet as of January 1, 2023, and the unaudited restated condensed consolidated financial statements as of April 2, 2023 and for the three months ended April 2, 2023 and April 3, 2022. In addition, the restated condensed consolidated financial information also includes adjustments to correct certain other previously identified misstatements that the Company determined to be immaterial, both individually and in the aggregate. For additional information, see Note 2. “Restatement of Previously Issued Condensed Consolidated Financial Statements” of the Notes to the Condensed Consolidated Financial Statements.

The Company’s management has concluded that in light of the findings described above, the Company’s disclosure controls and procedures as of April 2, 2023 were not effective because of material weaknesses in its internal control over financial reporting. Refer to “Item 4. Controls and Procedures” for additional details.

2

Table of Contents

Items Amended in this Filing

This Form 10-Q/A amends and restates the following items included in the Original Form 10-Q as appropriate to reflect the restatement and revision of the relevant periods:

Part I, Item 1-Financial Statements (unaudited);
Part I, Item 2-Management’s Discussion and Analysis of Financial Condition and Results of Operations;
Part I, Item 4-Controls and Procedures;
Part II, Item 1A-Risk Factors; and
Part II, Item 6-Exhibits.

The Company is including with this Form 10-Q/A currently dated certifications of the Company’s Chief Executive Officer and Chief Financial Officer (Exhibits 31.1, 31.2, 32.1, and 32.2).

Except as discussed above and as further described in Note 1 and Note 2 of the Notes to the Condensed Consolidated Financial Statements in this Form 10-Q/A, the Company has not modified or updated the disclosures presented in the Original Form 10-Q to reflect events that occurred at a later date or facts that subsequently became known to the Company. Accordingly, forward-looking statements included in this Amendment No. 1 may represent management’s views as of the Original Form 10-Q and should not be assumed to be accurate as of any date thereafter.
3

Table of Contents

SunPower Corporation
Form 10-Q for the quarterly period ended April 2, 2023

Table of Contents
Page


2

Table of Contents

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS


SunPower Corporation
Condensed Consolidated Balance Sheets
(In thousands, except share par values)
(unaudited)

 April 2, 2023January 1, 2023
(As Restated)(As Restated)
Assets
Current assets:
Cash and cash equivalents$116,478 $377,026 
Restricted cash and cash equivalents, current portion
10,471 10,668 
Short-term investments 132,480 
Accounts receivable, net1
197,498 169,674 
Contract assets58,610 57,070 
Inventories360,452 295,731 
Advances to suppliers, current portion15,258 12,059 
Prepaid expenses and other current assets1
213,820 197,811 
Total current assets972,587 1,252,519 
Restricted cash and cash equivalents, net of current portion
18,910 18,812 
Property, plant and equipment, net84,077 76,473 
Operating lease right-of-use assets36,302 36,926 
Solar power systems leased, net40,768 41,779 
Goodwill125,998 125,998 
Other intangible assets, net22,435 24,192 
Other long-term assets1
176,940 186,927 
Total assets$1,478,017 $1,763,626 
Liabilities and Equity  
Current liabilities:  
Accounts payable1
$223,694 $243,139 
Accrued liabilities1
167,435 148,119 
Operating lease liabilities, current portion11,589 11,356 
Contract liabilities, current portion1
162,343 141,863 
Short-term debt125,344 82,240 
Convertible debt, current portion1
 424,919 
Total current liabilities690,405 1,051,636 
Long-term debt155,969 308 
Operating lease liabilities, net of current portion28,362 29,347 
Contract liabilities, net of current portion11,339 11,588 
Other long-term liabilities1
112,214 114,702 
Total liabilities998,289 1,207,581 
Commitments and contingencies (Note 8)
Equity:  
Preferred stock, $0.001 par value; 10,000 shares authorized; none issued and outstanding as of April 2, 2023 and January 1, 2023
  
Common stock, $0.001 par value, 367,500 shares authorized; 189,246 shares issued and 174,901 shares outstanding as of April 2, 2023; 188,287 shares issued and 174,269 shares outstanding as of January 1, 2023
175 174 
Additional paid-in capital2,839,233 2,855,930 
Accumulated deficit(2,140,420)(2,085,784)
Accumulated other comprehensive income11,573 11,568 
Treasury stock, at cost: 14,345 shares of common stock as of April 2, 2023; 14,018 shares of common stock as of January 1, 2023
(231,717)(226,646)
Total stockholders' equity478,844 555,242 
Noncontrolling interests in subsidiaries884 803 
Total equity479,728 556,045 
Total liabilities and equity$1,478,017 $1,763,626 

1 We have related-party balances for transactions made with TotalEnergies SE and its affiliates, Maxeon Solar Technologies, Ltd. (“Maxeon Solar”), and unconsolidated entities in which we have a direct equity investment. These related-party balances are recorded within the “accounts receivable, net,” “prepaid expenses and other current assets,” “other long-term assets,” “accounts payable,” “accrued liabilities,” “convertible debt, current portion,” “contract liabilities, current portion,” and “other long-term liabilities” financial statement line items on our condensed consolidated balance sheets (see Note 3, Note 8, Note 9, and Note 11).


The accompanying notes are an integral part of these condensed consolidated financial statements.
3

Table of Contents


SunPower Corporation
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(unaudited)
 Three Months Ended
 April 2, 2023April 3, 2022
(As Restated)(As Restated)
Total revenues1
$434,267 $350,118 
Total cost of revenues1
353,229 268,273 
Gross profit81,038 81,845 
Operating expenses:
Research and development1
7,247 5,171 
Sales, general, and administrative1
104,318 87,867 
Restructuring charges (credits) 627 
(Income) expense from transition services agreement, net1
(224)266 
 Total operating expenses111,341 93,931 
Operating (loss) income(30,303)(12,086)
Other (expense) income, net:
Interest income831 42 
Interest expense1
(5,678)(5,051)
Other, net(10,983)1,444 
Other (expense) income, net(15,830)(3,565)
(Loss) income from continuing operations before income taxes and equity in earnings (losses) of unconsolidated investees(46,133)(15,651)
(Provision for) benefits from income taxes(1,328)8,129 
Equity in earnings (losses) of unconsolidated investees188  
Net (loss) income from continuing operations(47,273)(7,522)
(Loss) income from discontinued operations before income taxes and equity in earnings (losses) of unconsolidated investees1
(7,360)(26,298)
Benefits from (provision for) income taxes from discontinued operations78 333 
Net (loss) income from discontinued operations(7,282)(25,965)
Net (loss) income(54,555)(33,487)
Net (income) loss from continuing operations attributable to noncontrolling interests(81)339 
Net loss (income) from discontinued operations attributable to noncontrolling interests 250 
Net (income) loss attributable to noncontrolling interests(81)589 
Net (loss) income from continuing operations attributable to stockholders(47,354)(7,183)
Net (loss) income from discontinued operations attributable to stockholders(7,282)(25,715)
Net (loss) income attributable to stockholders$(54,636)$(32,898)
Net (loss) income per share attributable to stockholders - basic and diluted:
Continuing operations$(0.27)$(0.04)
Discontinued operations$(0.04)$(0.15)
Net (loss) income per share - basic and diluted
$(0.31)$(0.19)
Weighted-average shares:
Basic174,528 173,376 
Diluted174,528 173,376 

1 We have related-party transactions with TotalEnergies SE and its affiliates, Maxeon Solar, and unconsolidated entities in which we have a direct equity investment. These related-party transactions are recorded within the “total revenues,” “total cost of revenues,” “operating expenses: research and development,” “operating expenses: sales, general, and administrative,” “operating expenses: (income) expense from transition services agreement, net,” “other income (expense), net: interest expense,” and “(loss) income from discontinued operations before income taxes” financial statement line items in our condensed consolidated statements of operations (see Note 3, Note 9, and Note 11).


The accompanying notes are an integral part of these condensed consolidated financial statements.
4

Table of Contents


SunPower Corporation
Condensed Consolidated Statements of Comprehensive (Loss) Income
(In thousands)
(unaudited)

 Three Months Ended
April 2, 2023April 3, 2022
(As Restated)(As Restated)
Net (loss) income $(54,555)$(33,487)
Components of other comprehensive income (loss):
Translation adjustment5 2 
Total other comprehensive income (loss)5 2 
Total comprehensive (loss) income(54,550)(33,485)
Comprehensive (income) loss attributable to noncontrolling interests(81)589 
Comprehensive (loss) income attributable to stockholders$(54,631)$(32,896)


The accompanying notes are an integral part of these condensed consolidated financial statements.

5

Table of Contents


SunPower Corporation
Condensed Consolidated Statements of Equity
(In thousands)
(unaudited)


 Common Stock     
 SharesValueAdditional
Paid-in
Capital
Treasury
Stock
Accumulated Other
Comprehensive Income (Loss)
Accumulated DeficitTotal
Stockholders’
Equity
Noncontrolling Interests in SubsidiariesTotal Equity
Balances at January 1, 2023 (as reported)
174,269 $174 $2,855,930 $(226,646)$11,568 $(2,066,175)$574,851 $803 $575,654 
Cumulative restatement adjustments
     (19,609)(19,609) (19,609)
Balances at January 1, 2023 (as restated)
174,269 $174 $2,855,930 $(226,646)$11,568 $(2,085,784)$555,242 $803 $556,045 
Net (loss) income— — — — — (54,636)(54,636)81 (54,555)
Other comprehensive income— — — — 5 — 5 — 5 
Issuance of restricted stock to employees, net of cancellations959 1 — — — — 1 — 1 
Stock-based compensation expense— — 6,877 — — — 6,877 — 6,877 
Purchases of treasury stock(327)— — (5,071)— — (5,071)— (5,071)
Net working capital settlement related to the sale of our C&I Solutions business, net of taxes of $0.3 million
— — (23,574)— — — (23,574)— (23,574)
Balances at April 2, 2023 (as restated)
174,901 $175 $2,839,233 $(231,717)$11,573 $(2,140,420)$478,844 $884 $479,728 
6

Table of Contents



SunPower Corporation
Condensed Consolidated Statements of Equity
(In thousands)
(unaudited)


 Common Stock     
 SharesValueAdditional
Paid-in
Capital
Treasury
Stock
Accumulated Other
Comprehensive Income (Loss)
Accumulated DeficitTotal
Stockholders’
Equity
Noncontrolling Interests in SubsidiariesTotal Equity
Balances at January 2, 2022 (as reported)
173,051 $173 $2,714,500 $(215,240)$11,168 $(2,122,212)$388,389 $1,635 $390,024 
Cumulative restatement adjustments
     (6,421)(6,421) (6,421)
Balances at January 2, 2022 (as restated)
173,051 $173 $2,714,500 $(215,240)$11,168 $(2,128,633)$381,968 $1,635 $383,603 
Net (loss) income— — — — — (32,898)(32,898)(589)(33,487)
Other comprehensive income— — — — 2 — 2 — 2 
Issuance of restricted stock to employees, net of cancellations1,201 1 — — — — 1 — 1 
Stock-based compensation expense— — 5,427 — — — 5,427 — 5,427 
Purchases of treasury stock(407)— — (7,333)— — (7,333)— (7,333)
Balances at April 3, 2022 (as restated)
173,845 $174 $2,719,927 $(222,573)$11,170 $(2,161,531)$347,167 $1,046 $348,213 




The accompanying notes are an integral part of these condensed consolidated financial statements.
7

Table of Contents


SunPower Corporation
Condensed Consolidated Statements of Cash Flows
(In thousands)
(unaudited)
    
Three Months Ended
 April 2, 2023April 3, 2022
(As Restated)(As Restated)
Cash flows from operating activities:
Net (loss) income
$(54,555)$(33,487)
Adjustments to reconcile net (loss) income to net cash used in operating activities:
Depreciation and amortization10,269 4,313 
Amortization of cloud computing arrangements1,740 517 
Stock-based compensation6,877 5,427 
Amortization of debt issuance costs617 726 
Equity in (earnings) losses of unconsolidated investees(188) 
Loss (gain) on equity investments
10,805 (1,315)
Unrealized loss (gain) on derivatives
3,334  
Dividend from equity method investees371  
Deferred income taxes(815)(14,167)
Other, net:91 845 
Changes in operating assets and liabilities:
Accounts receivable(27,915)(12,530)
Contract assets(1,540)(6,939)
Inventories(64,721)(32,544)
Project assets 2,892 
Prepaid expenses and other assets(12,933)(81,266)
Operating lease right-of-use assets2,710 2,642 
Advances to suppliers(3,198)(2,222)
Accounts payable and other accrued liabilities(27,340)40,211 
Contract liabilities20,230 22,064 
Operating lease liabilities(2,838)(3,244)
Net cash (used in) provided by operating activities(138,999)(108,077)
Cash flows from investing activities:
Purchases of property, plant, and equipment(11,943)(9,213)
Investment in software development costs(891)(1,521)
Cash paid for equity investments under the Dealer Accelerator Program and other (7,000)
Proceeds from sale of equity investment121,675 149,830 
Cash paid for investments in unconsolidated investees(1,454)(154)
Dividend from equity method investee, in excess of cumulative earnings149  
Net cash provided by (used in) investing activities107,536 131,942 
Cash flows from financing activities:
Proceeds from bank loans and other debt245,764 21,458 
Repayment of bank loans and other debt(44,112)(23,866)
Repayment of convertible debt(424,991) 
Payments for financing leases(775)(11)
Purchases of stock for tax withholding obligations on vested restricted stock(5,070)(7,332)
Net cash (used in) provided by financing activities(229,184)(9,751)
Net (decrease) increase in cash, cash equivalents, and restricted cash(260,647)14,114 
Cash, cash equivalents, and restricted cash, beginning of period406,506 152,599 
Cash, cash equivalents, and restricted cash, end of period$145,859 $166,713 
Reconciliation of cash, cash equivalents, and restricted cash to the condensed consolidated balance sheets, including discontinued operations:
Cash and cash equivalents$116,478 $142,250 
Restricted cash and cash equivalents, current portion10,471 1,428 
Restricted cash and cash equivalents, net of current portion18,910 16,259 
Cash, cash equivalents, and restricted cash from discontinued operations 6,776 
Total cash, cash equivalents, and restricted cash$145,859 $166,713 
Supplemental disclosure of non-cash activities:
Property, plant and equipment acquisitions funded by liabilities (including financing leases)$3,505 $1,833 
Right-of-use assets obtained in exchange for lease obligations$2,086 $392 
Net working capital settlement related to C&I Solutions sale$23,880 $ 
Supplemental cash flow disclosures:
Cash paid for interest$11,969 $9,874 
Cash paid for income taxes$184 $250 



The accompanying notes are an integral part of these condensed consolidated financial statements.
8

Table of Contents

Notes to Condensed Consolidated Financial Statements (Unaudited)

Note 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Organization

SunPower Corporation (together with its subsidiaries, “SunPower,” the “Company,” “we,” “us,” or “our”) is a leading solar technology and energy services provider that offers fully integrated solar, storage, and home energy solutions to customers in North America. Through a multi-channel strategy of distributed dealer network, SunPower direct sales channel, and new home builder partnerships, we provide customers control over electricity consumption, resiliency during power outages, and cost savings, while also reducing carbon emissions and contributing to a more sustainable grid.

SunPower was a majority-owned subsidiary of TotalEnergies Solar INTL SAS (“Total,” formerly Total Solar International SAS) and TotalEnergies Gaz & Electricité Holdings France SAS (“Total Gaz,” formerly Total Gaz Electricité Holdings France SAS), each a subsidiary of TotalEnergies SE (“TotalEnergies SE,” formerly Total SE). On September 12, 2022, Total and Total Gaz sold to GIP III Sol Acquisition, LLC (“GIP Sol”) 50% less one unit of the equity interests in a newly formed Delaware limited liability company, Sol Holding, LLC (“HoldCo”), which is now the record holder of all of the shares of SunPower common stock (see Note 3. Transactions with Total and TotalEnergies SE).

Liquidity and Going Concern

The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which assumes the Company will be able to continue as a going concern and contemplates the realization of assets and satisfaction of liabilities in the normal course of business. Subsequent to the filing of our Original Form 10-Q, as of October 1, 2023, we breached a financial covenant and a reporting covenant of our Credit Agreement, dated as of September 12, 2022 (as amended, the “Credit Agreement”) (see Note 10. Debt and Credit Sources). The breaches created events of default thereunder (the “Existing Defaults”), which enables the requisite lenders under the Credit Agreement to demand immediate payment of $246.3 million borrowings outstanding as of October 1, 2023, or exercise other remedies. As a result of the events of default, we no longer had the ability to borrow from the remaining capacity of $53.7 million of revolving commitments. On December 8, 2023 (the “Amendment Effective Date”), the Company obtained a waiver and amendment to the Credit Agreement (the “Amendment and Waiver”) as amended by the First Amendment to Credit Agreement, dated as of January 26, 2023 (together and as amended, the “Amended Credit Agreement”) by and among the Company, certain of its subsidiaries as guarantors, Bank of America, N.A. (“Bank of America”), BMO Bank, N.A., Citibank, N.A. and JPMorgan Chase Bank, N.A. as the lenders and L/C issuers party thereto (together, the “Existing Lenders”), and Bank of America, as administrative agent which provides for, among other things, a temporary waiver until January 19, 2024 of the breaches, and modification to the remaining available commitments through (i) the Existing Lenders to provide access to $25 million of existing revolving commitments and (ii) commitments by HoldCo, as a new lender, to provide an additional $25 million of capacity. Subsequent to the amendment, we borrowed the entire $50 million against the remaining capacity on the revolving credit facility. Although we entered into the Amendment and Waiver to temporarily address the Existing Defaults, we are also projecting to be noncompliant with certain debt covenants, which would cause further defaults under our existing debt arrangements. Following the expiration of the Amendment and Waiver, absent additional waivers, the events of default enable the requisite lenders under the Credit Agreement to demand immediate payment or exercise other remedies, such as subject all or a portion of obligations to a default rate of interest. Further, the Company also breached a financial covenant set forth in the Loan and Security Agreement, dated June 30, 2022, entered into by a wholly owned indirect subsidiary of the Company, the lenders party thereto from time to time, Atlas Securitized Products Holdings, L.P., as administrative agent and Computershare Trust Company, National Association, as paying agent (as amended, the “Loan Facility with Credit Suisse AG,” the “Credit Suisse Warehouse Loan,” or the “Atlas Credit Agreement”) (see “Note 10. Debt and Credit Sources”), due to delay in delivery of the quarterly financials for the third quarter of 2023 (the “Quarterly Financials Default”), which results in an event of default, thereby enabling the requisite lenders to demand immediate payment of $65.3 million borrowings outstanding as of October 1, 2023, or exercise other remedies. The Company is in discussion with the lenders under the Atlas Credit Agreement regarding a waiver of any breaches. There can be no assurance that such waiver will be obtained. Absent a waiver, the event of default enables the requisite lenders under the Atlas Credit Agreement to demand immediate payment or exercise other remedies, such as subject all or a portion of obligations to a default rate of interest. If the lenders under the Credit Agreement and the Atlas Credit Agreement were to demand immediate repayment, the Company would not have sufficient liquidity to meet its obligations and pay its liabilities arising from normal business operations when they come due. As such, substantial doubt exists about the Company's ability to continue as a going concern.

9

Table of Contents

To address our liquidity needs, management is currently seeking additional waivers and evaluating various funding alternatives and may seek to raise additional funds through the issuance of equity, mezzanine or debt securities, through arrangements with strategic partners, which may include related parties, the capital markets, or through obtaining credit from financial institutions. As we seek additional sources of financing, there can be no assurance that such financing would be available to us on favorable terms or at all. Our ability to obtain additional financing in the debt and equity capital markets is subject to several factors, including market and economic conditions, our performance and investor sentiment with respect to us and our industry. The outcome of these matters cannot be predicted with any certainty at this time.

Basis of Presentation and Preparation
    
Principles of Consolidation

The accompanying condensed consolidated financial statements have been prepared by us in accordance with generally accepted accounting principles in the United States (“United States” or “U.S.,” and such accounting principles, “U.S. GAAP”) for interim financial information, and include the accounts of SunPower, all of our subsidiaries and special purpose entities, as appropriate under U.S. GAAP. All intercompany transactions and balances have been eliminated in consolidation. The financial information included herein is unaudited, and reflects all adjustments which are, in the opinion of our management, of a normal recurring nature and necessary for a fair statement of the results for the periods presented. The January 1, 2023 consolidated balance sheet data was derived from SunPower’s audited consolidated financial statements included in our Annual Report on Form 10-K/A for the fiscal year ended January 1, 2023, as filed with the Securities and Exchange Commission (“SEC”) on December 18, 2023, but does not include all disclosures required by U.S. GAAP. The condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in SunPower's Annual Report on Form 10-K/A for the fiscal year ended January 1, 2023. The operating results for the three months ended April 2, 2023 are not necessarily indicative of the results that may be expected for fiscal year 2023, or for any other future period.

We have a 52-to-53-week fiscal year that ends on the Sunday closest to December 31. Accordingly, every fifth or sixth year will be a 53-week fiscal year. Both the current fiscal year, fiscal 2023, and prior fiscal year, fiscal 2022, are 52-week fiscal years. The first quarter of fiscal 2023 ended on April 2, 2023, while the first quarter of fiscal 2022 ended on April 3, 2022.

Management Estimates

The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires our management to make estimates and assumptions that affect the amounts of assets and liabilities and disclosures of contingent assets and liabilities reported in these condensed consolidated financial statements and accompanying notes. We base our estimates on historical experience and various other assumptions believed to be reasonable. Our actual financial results could materially differ from those estimates. Significant estimates in these condensed consolidated financial statements include revenue recognition, specifically nature and timing of satisfaction of performance obligations, standalone selling price of performance obligations, and variable consideration; credit losses, including estimating macroeconomic factors affecting historical recovery rate of receivables; inventory write-downs; long-lived assets and goodwill impairment, specifically estimates for valuation assumptions including discount rates and future cash flows; fair value of investments, including equity investments for which we apply the fair value option and other financial instruments; actuarial estimates related to our self-insured health benefits; valuation of goodwill and intangible assets acquired in a business combination; valuation of contingent consideration in a business combination; valuation of contingencies such as warranty and litigation; the incremental borrowing rate used in discounting of lease liabilities; the fair value of indemnities provided to customers and other parties; and income taxes and tax valuation allowances.

10

Table of Contents

Restatement of Previously Issued Condensed Consolidated Financial Statements

As described in Note 2. Restatement of Previously Issued Condensed Consolidated Financial Statements, our condensed consolidated financial statements as of April 2, 2023 and January 1, 2023, and for the three months ended April 2, 2023 and April 3, 2022 (collectively, the “Affected Periods”), are restated in this Quarterly Report on Form 10-Q/A (this “Amendment No. 1”, this “Quarterly Report,” or this “Form 10-Q/A”) to reflect the corrections related to the value of consignment inventory of microinverter ("MI") components at certain warehouse and third-party locations and corrections related to reclassification of certain expenses in our statements of operations, along with other immaterial corrections. The restated condensed consolidated financial statements are indicated as “Restated” in the unaudited condensed consolidated financial statements and accompanying notes, as applicable. See Note 2. Restatement of Previously Issued Condensed Consolidated Financial Statements for further discussion.

Segment Information

We operate in a single operating segment, providing solar power systems and services to residential customers. While our chief executive officer, as the chief operating decision maker (“CODM”), reviews financial information by different functions and revenue streams, he considers the business on a consolidated basis for purposes of allocating resources and reviewing overall business performance.

Summary of Selected Significant Accounting Policies
    
The following significant accounting policies are updates to our significant accounting policies from our Annual Report on Form 10-K/A for the fiscal year ended January 1, 2023. Refer to our Annual Report on Form 10-K/A for the fiscal year ended January 1, 2023 for the full list of our significant accounting policies. There have been no material changes to our significant accounting policies disclosed in the Form 10-K/A.

Note 2. RESTATEMENT OF PREVIOUSLY ISSUED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Restatement Background

On October 19, 2023, the Audit Committee of the Board of Directors (the “Board”) of the Company, based upon the recommendation of management, determined that our (i) audited consolidated financial statements included in our Annual Report on Form 10-K for the period ended January 1, 2023, filed with the SEC on March 10, 2023 (the “Original Form 10-K”), (ii) unaudited condensed consolidated financial statements included in our Quarterly Report on Form 10-Q for the quarterly period ended April 2, 2023, filed with the SEC on May 3, 2023 (the “Original Q1 2023 Form 10-Q”), and (iii) unaudited condensed consolidated financial statements included in our Quarterly Report on Form 10-Q for the quarterly period ended July 2, 2023, filed with the SEC on August 2, 2023 (the “Q2 2023 Form 10-Q,” and collectively, the “Affected Periods”), as well as the relevant portions of any communication which describe or are based on such consolidated financial statements, should no longer be relied upon, and that the previously issued financial statements for the Affected Periods should be restated.

This Note discloses the nature of the restatement adjustments and discloses the cumulative effects of these adjustments on the condensed consolidated balance sheets, statements of operations, and statements of cash flows for the periods included in the Original Form 10-Q. The consolidated statements of comprehensive income (loss) and statements of equity for the three months ended April 2, 2023 and April 3, 2022 have also been restated for the correction to net income (loss).

The unaudited condensed consolidated balance sheet as of January 1, 2023, and the unaudited condensed consolidated financial statements as of April 2, 2023 and for the three months ended April 2, 2023 and April 3, 2022, have been restated to reflect the corrections related to the value of consignment inventory of MI components at certain warehouse and third-party locations, and reclassification of certain expenses in our condensed consolidated statements of operations as further described below, along with other immaterial items pertaining to the periods noted above. The effects of the restatement, including the related income tax impacts, have been reflected in the impacted tables and footnotes throughout these condensed consolidated financial statements in this Amendment No. 1. The restatement adjustments and their impacts on the previously issued condensed consolidated financial statements included in the Original Q1 2023 Form 10-Q are described below.

11

Table of Contents

Description of Restatement Adjustments

The categories of the restatement adjustments and their impact on the previously reported condensed consolidated financial statements included in the Original Q1 2023 Form 10-Q are described below.

a.Inventory Related Adjustments - In the third quarter of fiscal year 2023, while reviewing our inventory account reconciliations, we identified that the consumption of certain MI costs in photo-voltaic module manufacturing had been inaccurately recorded starting in the first quarter of fiscal year 2022. This resulted in an overstatement of MI costs included in finished goods inventory, and an understatement of cost of revenues for the impacted periods. The impact of the correction is to recognize an increase in cost of revenues for the relevant MI costs, with a corresponding reduction to our finished goods inventory and increase in accrued liabilities related to additional accruals for sales and use taxes. In addition, we also identified other immaterial miscellaneous inventory-related misstatements during the first quarters of fiscal years 2023 and 2022, pertaining to the physical inventory counts and classifications between financial statement line items related to inventories.
The aggregated impact to the condensed consolidated statements of operations for the three months ended April 2, 2023 is a decrease to total cost of revenues of $0.3 million. The impact to the condensed consolidated balance sheets as of April 2, 2023 is a decrease in inventories of $19.4 million, an increase in advances to suppliers, current portion of $2.8 million, an increase in prepaid expenses and other current assets of $0.4 million, a decrease in accounts payable of $1.4 million, and an increase in accrued liabilities of $0.6 million.
The aggregated impact to the condensed consolidated statements of operations for the three months ended April 3, 2022 is an increase to total cost of revenues of $3.1 million. The impact to the condensed consolidated balance sheets as of January 1, 2023 is a decrease in inventories of $19.7 million, an increase in advances to suppliers, current portion of $2.8 million, an increase in prepaid expenses and other current assets of $2.4 million, an increase in accounts payable of $0.8 million, and an increase in accrued liabilities of $0.4 million.

b.Classification of Expense in the Statements of Operations - In fiscal year 2023, we identified errors related to the classification of certain expenses as cost of revenues instead of operating expenses. This resulted in the reclassification of certain expenses from cost of revenues to selling, general, and administrative expense for the three months ended April 2, 2023 and April 3, 2022.
The aggregated impact to the condensed consolidated statements of operations for the three months ended April 2, 2023 is a decrease to total cost of revenues of $13.9 million and an increase to sales, general, and administrative expenses of $13.9 million.
The aggregated impact to the condensed consolidated statements of operations for the three months ended April 3, 2022 is a decrease to total cost of revenues of $10.8 million and an increase to sales, general, and administrative expenses of $10.8 million.

c.Discontinued Operations - We determined that certain charges for changes in estimates related to indemnifications of warranty obligations and legal costs we have retained in connection with the sale of our C&I Solutions business to TotalEnergies Renewables should have been classified as discontinued operations instead of continuing operations in the condensed consolidated statements of operations for fiscal year 2022.
The impact to the condensed consolidated statements of operations for the three months ended April 2, 2023 is a decrease to total cost of revenues of $6.8 million and a decrease to sales, general and administrative expenses of $0.5 million, with an increase to discontinued operations by the total amount.

d.Timing of Revenue Recognition for Certain Revenue Contracts - In the fourth quarter of fiscal year 2022, we determined that a portion of revenue earned from sales through our New Homes channel were incorrectly deferred. We concluded that our performance obligations related to these contracts had been satisfied and revenue should have been recognized.
The impact to the condensed consolidated statements of operations for the three months ended April 2, 2023 is a decrease in total revenues of $6.4 million and a decrease in total cost of revenues of $4.0 million.
The impact to the condensed consolidated balance sheets as of January 1, 2023 is an increase in contract assets of $6.4 million and a decrease in prepaid expenses and other current assets of $4.0 million.

e.Other Restatement Adjustments - There are other restatement adjustments otherwise not described in items (a) through (d) above, which are individually and in the aggregate insignificant for the periods of the three months ended April 2, 2023 and April 3, 2022.

12

Table of Contents

Condensed Consolidated Financial Statements - Restatement Reconciliation Tables

In light of the foregoing, in accordance with ASC 250, Accounting Changes and Error Corrections, we are restating the previously issued condensed consolidated financial statements as of April 2, 2023 and January 1, 2023, and for the three months ended April 2, 2023 and April 3, 2022 to reflect the effects of the restatement adjustments, and to make certain corresponding disclosures. In the following tables, we have presented a reconciliation of our condensed consolidated balance sheets, statements of operations, and cash flows as previously reported for these periods to the restated and revised amounts.

Summary of Restatement - Condensed Consolidated Balance Sheets

 April 2, 2023January 1, 2023
(In thousands)As Previously ReportedRestatement ImpactsRestatement ReferenceAs RestatedAs Previously ReportedRestatement ImpactsRestatement ReferenceAs Restated
Assets
Current assets:
Cash and cash equivalents$116,478 $ $116,478 $377,026 $ $377,026 
Restricted cash and cash equivalents, current portion9,634 837 
e
10,471 9,855 813 
e
10,668 
Short-term investments   132,480  132,480 
Accounts receivable, net194,231 3,267 
e
197,498 174,577 (4,903)
e
169,674 
Contract assets58,610  58,610 50,692 6,378 
d
57,070 
Inventories381,847 (21,395)
a, e
360,452 316,815 (21,084)
a, e
295,731 
Advances to suppliers, current portion12,508 2,750 
a
15,258 9,309 2,750 
a
12,059 
Prepaid expenses and other current assets212,970 850 
a, e
213,820 197,760 51 
a, d, e
197,811 
Total current assets986,278 (13,691)972,587 1,268,514 (15,995)1,252,519 
Restricted cash and cash equivalents, net of current portion15,158 3,752 
e
18,910 15,151 3,661 
e
18,812 
Property, plant and equipment, net82,117 1,960 
e
84,077 74,522 1,951 
e
76,473 
Operating lease right-of-use assets36,302  36,302 36,926  36,926 
Solar power systems leased, net40,768  40,768 41,779  41,779 
Goodwill126,338 (340)
e
125,998 126,338 (340)
e
125,998 
Other intangible assets, net22,435  22,435 24,192  24,192 
Other long-term assets183,015 (6,075)
e
176,940 192,585 (5,658)
e
186,927 
Total assets$1,492,411 $(14,394)$1,478,017 $1,780,007 $(16,381)$1,763,626 
Liabilities and Equity  
Current liabilities:  
Accounts payable$225,143 $(1,449)
a
$223,694 $242,229 $910 
a, e
$243,139 
Accrued liabilities164,210 3,225 
a, e
167,435 145,229 2,890 
a, e
148,119 
Operating lease liabilities, current portion11,589  11,589 11,356  11,356 
Contract liabilities, current portion161,289 1,054 
e
162,343 144,209 (2,346)
e
141,863 
Short-term debt
121,473 3,871 
e
125,344 82,404 (164)
e
82,240 
Convertible debt, current portion   424,919  424,919 
Total current liabilities683,704 6,701 690,405 1,050,346 1,290 1,051,636 
Long-term debt
155,969  155,969 308  308 
Operating lease liabilities, net of current portion28,362  28,362 29,347  29,347 
13

Table of Contents

Contract liabilities, net of current portion11,305 34 
e
11,339 11,555 33 
e
11,588 
Other long-term liabilities109,782 2,432 
e
112,214 112,797 1,905 
e
114,702 
Long-term liabilities of discontinued operations
      
Total liabilities989,122 9,167 998,289 1,204,353 3,228 1,207,581 
Commitments and contingencies (Note 8)
Equity:
Preferred stock
      
Common stock
175  175 174  174 
Additional paid-in capital2,839,233  2,839,233 2,855,930  2,855,930 
Accumulated deficit(2,116,859)(23,561)
a, d, e
(2,140,420)(2,066,175)(19,609)
a, d, e
(2,085,784)
Accumulated other comprehensive income11,573  11,573 11,568  11,568 
Treasury stock, at cost
(231,717) (231,717)(226,646) (226,646)
Total stockholders' equity502,405 (23,561)478,844 574,851 (19,609)555,242 
Noncontrolling interests in subsidiaries884  884 803  803 
Total equity503,289 (23,561)479,728 575,654 (19,609)556,045 
Total liabilities and equity$1,492,411 $(14,394)$1,478,017 $1,780,007 $(16,381)$1,763,626 

Summary of Restatement - Condensed Consolidated Statements of Operations

 Three Months Ended
 April 2, 2023April 3, 2022
(In thousands, except per share data)
As Previously ReportedRestatement ImpactsRestatement ReferenceAs RestatedAs Previously ReportedRestatement ImpactsRestatement ReferenceAs Restated
Total revenues$440,878 $(6,611)
d, e
$434,267 $350,277 $(159)
e
$350,118 
Total cost of revenues376,767 (23,538)
a-e
353,229 277,968 (9,695)
a, b, e
268,273 
Gross profit64,111 16,927 81,038 72,309 9,536 81,845 
Operating expenses:
Research and development7,247  7,247 5,010 161 
e
5,171 
Sales, general, and administrative90,881 13,437 
b, c, e
104,318 76,996 10,871 
b, e
87,867 
Restructuring charges (credits)   627  627 
(Income) expense from transition services agreement, net
(224) (224)266  266 
 Total operating expenses97,904 13,437 111,341 82,899 11,032 93,931 
Operating (loss) income(33,793)3,490 (30,303)(10,590)(1,496)(12,086)
Other (expense) income, net:
Interest income831  831 42  42 
Interest expense(5,678) (5,678)(5,044)(7)
e
(5,051)
Other, net(10,983) (10,983)1,444  1,444 
Other (expense) income, net(15,830) (15,830)(3,558)(7)(3,565)
(Loss) income from continuing operations before income taxes and equity in earnings (losses) of unconsolidated investees(49,623)3,490 (46,133)(14,148)(1,503)(15,651)
(Provision for) benefits from income taxes
(1,227)(101)
e
(1,328)11,643 (3,514)
e
8,129 
Equity in earnings (losses) of unconsolidated investees247 (59)
e
188    
Net (loss) income from continuing operations(50,603)3,330 (47,273)(2,505)(5,017)(7,522)
14

Table of Contents

(Loss) income from discontinued operations before income taxes and equity in earnings (losses) of unconsolidated investees (7,360)
c
(7,360)(26,298) (26,298)
Benefits from (provision for) income taxes from discontinued operations 78 
e
78 343 (10)
e
333 
Net (loss) income from discontinued operations (7,282)(7,282)(25,955)(10)(25,965)
Net (loss) income(50,603)(3,952)(54,555)(28,460)