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Acorn Energy (ACFN) guidance and outlook

Acorn Energy's 10-Q filed Nov 5, 2026 makes 13 forward-looking statements.

Guidance and outlook

Forward-looking statements, 10-Q filed Nov 5, 2026

• We expect the arrangement to broaden distribution of our residential power generation products.
• We regularly review our deferred tax assets for recoverability considering historical profitability, projected future taxable income, the expected timing of the reversals of existing temporary differences and tax planning strategies.
• In forecasting future taxable income, management’s projections and beliefs are based upon a variety of estimates and numerous assumptions made by our management with respect to, among other things, interest rates, forecasted revenue of the hardware sales and monitoring revenue or revenue streams that could generate sufficient income.
• In evaluating our ability to recover our deferred tax assets, we consider and weigh all available positive and negative evidence, including our past operating results, the existence of cumulative losses in the most recent years and our forecast of future taxable income.
• The Company currently has a three-year cumulative income position which is positive evidence that it is more likely than not the deferred tax assets will be realized.
• During the three months ended September 30, 2026, we recorded a discrete reduction in the valuation allowance of $780,000 associated with the realizability of deferred tax assets due to the tax treatment of capitalized research and development costs and changes to the forecast.
• At this time, however, we cannot assure you that we will be successful in doing so.
• Accordingly, our management will continue to assess the need for this valuation allowance and will make adjustments when appropriate.
• This lowers our annual tax amortization of these costs and increases our projected taxable income in the near term.
• In addition, our updated forecasts reflect higher expected future earnings due to the recent acquisition.
• As a result, we now expect to use certain federal net operating loss carryforwards that were previously expected to expire unused.
• Based on this positive evidence, we concluded that it is more likely than not that approximately $780,000 of the related net operating loss deferred tax assets will be realized, and we therefore released the corresponding valuation allowance as a discrete item in the period.

Acorn Energy's latest quarter

Questions

What does Acorn Energy expect?

We expect the arrangement to broaden distribution of our residential power generation products. We regularly review our deferred tax assets for recoverability considering historical profitability, projected future taxable income, the expected timing of the reversals of existing temporary differences and tax planning strategies. In forecasting future taxable income, management’s projections and beliefs are based upon a variety of estimates and numerous assumptions made by our management with respect to, among other things, interest rates, forecasted revenue of the hardware sales and monitoring

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Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.