Summary of Ozop Energy Solutions, Inc.

Business Overview

• Type of Business: Ozop Energy Solutions, Inc. operates in the renewable energy sector with multiple business lines focused on project development and equipment distribution across renewable energy, electric vehicle (EV), energy storage, and energy resiliency markets.

Key Business Segments & Operations

• Equipment Distribution:

  • Began in June 2021 with a five-year lease of approximately 8,100 sq. ft. in California for sales and distribution supporting West Coast operations.
  • Transitioned into a sublease in March 2023 where a third-party is responsible for lease obligations until May 2026.

• Modular Energy Distribution System (NeoVolt™):

  • Designed as a scalable battery storage solution to alleviate grid stress by providing distributed energy storage.
  • Offers vehicle EV charging locations that can be installed quickly with minimal delays, using renewable energy sources to reduce carbon footprint.
  • Developed technical drawings and plans to construct a prototype or proof of concept (PoC), contingent on EV standardization advancements.
  • Features include automatic device adoption and dynamic load balancing via master-slave configuration.

• Ozop Plus (OZOP+):

  • Markets vehicle service contracts (VSCs) for EV owners, allowing purchase of additional months/miles above manufacturer warranties.
  • Partnerships with Royal Administration and Empire Auto Protect to market VSCs and product value-added services.
  • Cedes battery premiums from VSCs to EVCO.

• Ozop Engineering and Design (OED):

  • Provides engineering and lighting control design services.
  • Focus on fast lead times, technical support, and eco-friendly electrical and solar project designs.
  • Signed an agreement with Leviton Manufacturing for lighting control systems support.

• Automated Room Controls (ARC):

  • Developing advanced, hybrid wired-wireless lighting control systems.
  • Uses sensors, control nodes, and supports protocols like DALI and Zigbee.
  • Designed to work with IoT platforms, focusing on energy efficiency and complex architectural environments.

Business Development and Strategy

• Marketed products through proprietary websites, trade shows, and third-party portals.
• Competes with larger, more established companies with greater resources and global presence.
• Currently employs 7 full-time employees:
  • 2 employees at Ozop Energy Systems.
  • 4 employees at Ozop Engineering and Design.
  • 1 employee at Ozop Capital Partners/EV Insurance.
• Also utilizes independent contractors and consultants.

Financial Highlights (as of December 31, 2024)

• Revenue: $1,342,653 for the year ending December 31, 2024.
  • Includes $728,640 from the YHS settlement.
  • Lower revenues in 2024 mainly due to decreased solar panel sales (significantly affected by higher interest rates and industry price competition).
• Gross Margin: 11.6% (improved from -12.7% in 2023).
• Net Loss:
  • $6,198,161 for 2024.
  • Compared to a net loss of $7,369,681 in 2023.
• Operating Expenses: $3,619,155 in 2024 (lower than $5,644,981 in 2023).
• Other Income/Expenses:
  • Interest expense of approximately $4 million.
  • Gain on change in fair value of derivatives: $1,005,585.
  • Gain on litigation settlement: $271,360.
• Total Assets (2024): $1,754,165 (down from $3,784,639 in 2023).
• Working Capital (2024): Negative at approximately $32.2 million.
• Stockholders’ Equity: Deficit of approximately $31.5 million.

Summary

Ozop Energy Solutions, Inc. is engaged in the development and distribution of renewable energy products, EV infrastructure, and energy resiliency solutions with a focus on battery storage, EV charging, lighting control systems, and vehicle service contracts. The company operates in a highly competitive market, with revenue primarily from product sales, installations, and settlement gains. It employs a small team, with strategic partnerships and ongoing development of innovative energy and lighting control systems. The company faces significant financial challenges, including a large accumulated deficit and working capital deficit, raising concerns about its ability to continue as a going concern.