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Table of Contents
<br />to energy use. If the bills are complex or numerous, we often utilize our proprietary enterprise energy management software tools to scan, compile and analyze the information.
<br />Our experienced engineers visit and assess the customer's current energy systems and infrastructure. Through our knowledge of the federal, state, and local governmental and
<br />utility environments, we assess the availability of energy, utility or environmental -based payments for usage reductions or renewable power generation, which helps us optimize
<br />the economic benefits of a proposed project for a customer. Once awarded a project, we perform a more detailed audit of the customer's facilities, which serves as the basis for
<br />the final specifications of the project and final contract terms.
<br />For renewable energy plants that are not built or located on a customer's site or use sources of energy not within the customer's control, the sales process also involves the
<br />identification of sites with attractive sources of renewable energy and obtaining necessary rights and governmental permits to develop a plant on that site. For example, for LFG
<br />projects, we start with gaining control of an LFG resource located close to the prospective customer. For solar and wind projects, we look for sites where utilities are interested
<br />in purchasing renewable energy power at rates that are sufficient to make a project feasible. Where governmental agencies control the site and resource, such as a landfill owned
<br />by a municipality, the customer may be required to issue an RFP to use the site or resource. Once we believe we are likely to obtain the rights to the site and the resource, we
<br />seek customers for the energy output of the potential project, with whom we can enter into a long-term PPA.
<br />Customers
<br />We strive to be a trusted sustainability partner creating valued, single -sourced, efficient energy solutions delivered with passion, expertise, teamwork, and a relentless focus on
<br />customer satisfaction.
<br />Our customers choose to prioritize efficiency and the development of clean, green energy sources and our solutions are customized to serve the specific needs of each customer
<br />and meaningfully reduce or offset their carbon footprint. From energy conservation through a variety of measures to the generation of green, renewable power, our customers
<br />and their communities reap the benefits of reducing energy consumption, costs, and associated carbon emissions.
<br />In 2023, we served customers throughout the United States, Canada, and Europe. Approximately 71.8% of our revenues were derived from federal, state, provincial, or local
<br />government entities, including public housing authorities, public universities, and municipal utilities. Our federal customers include various divisions of the U.S. federal
<br />government. The U.S. federal government is considered a single customer and segment for reporting purposes (see table above under "Our Business Segments"). For the year
<br />ended December 31, 2023, our largest 20 customers accounted for approximately 56.4% of our total revenues. Other than the U.S. federal government, no customers
<br />represented 10% or more of our revenues during this period.
<br />See "Provisions in our government contracts may harm our business, financial condition and operating results" in Item IA, Risk Factors for a discussion of special
<br />considerations applicable to government contracting and "The loss of one of our significant customers or our failure to perform on our contract with that customer in accordance
<br />with its terms could adversely affect us" in Item IA, Risk Factors for further discussion.
<br />Competition
<br />While we face significant competition from a large number of companies, we believe that few offer the objective technical expertise and full range of services we do.
<br />Our principal competitors include:
<br />Smart Energy Solutions: McKinstry, CM3 Building Solutions, CMTA, Inc. (a Legence company), SitelogIQ, ABM Industries, Inc., Southland Industries, Energy
<br />Systems Group, LLC, Honeywell, Johnson Controls, NORESCO (a unit of Carrier Global Corporation), Schneider Electric, Siemens Building Technologies, and Trane
<br />Technologies (an Ingersoll-Rand company). We compete primarily on the basis of our comprehensive, independent offering of energy efficiency and renewable energy
<br />services and the breadth and depth of our expertise.
<br />Energy Assets: In the LFG and RNG market our principal competitors primarily include large, national project developers and owners of landfills who self -develop
<br />projects using LFG from their own landfills, and other national renewable natural gas developers/owners such as Archaea Energy, Montauk Renewables, Vanguard
<br />Renewables, Opal Fuels, and divisions of large multi -national oil and gas conglomerates. In the Solar PV and Battery Storage market our principal competitors include
<br />NextEra Energy, Inc., Engie SA, Invenergy, EDF Renewables, and Clearway Energy Group LLC. We may also compete with many large independent power producers
<br />and utilities, as well as a large number of smaller developers of renewable energy projects. In EaaS, our competitors include Engie SA, Enel X, Schneider Electric SE,
<br />and Redaptive, Inc. We compete for renewable energy projects primarily on the basis of our experience, reputation, and ability to identify and complete high quality and
<br />cost-effective projects.
<br />O&M Services: EMCOR Energy Services, Comfort Systems USA, Honeywell, Johnson Controls, and Veolia. In this area, we compete primarily on the basis of our
<br />expertise and quality of service.
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