RGS Energy (Real Goods Solar Inc.), a potential rival of Tesla’s solar tile roofing system, recently succumbed to Chapter 7 bankruptcy due to failure to raise additional capital for long-term operating losses.
RGS Energy has sought to move away from its loss-making residential solar business in the US and subcontract installers, home builders and conventional roofers after obtaining the rights and subsequent UL certification for the former Dow ‘POWERHOUSE’ 3.0 Technology in November 2018.
Despite the significant interest in the product, particularly from conventional roofing companies, direct sales of the POWERHOUSE product in the first nine months of 2019 were only $ 367,000, while POWERHOUSE sales in the third quarter of 2019 were $ 197,000. Dollar fraud.
The company had only $ 0.8 million in cash and $ 0.4 million in working capital at the end of September 2019, according to SEC filings.
On January 31, 2020, the company ceased operations and filed for Chapter 7 bankruptcy in the U.S. Bankruptcy Court for the state of Colorado. Then executives such as CEO, Dennis Lacey and CFO Alan Fine left the company.