We have adopted a written code of business conduct and ethics that applies to our principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions and have posted it in the Corporate Governance section of our website which is located at www.enernoc.com. We intend to satisfy any disclosure requirement under Item 5.05 of Form 8-K regarding any amendments to, or waivers from, our code of business conduct and ethics by posting such information on our website which is located at www.enernoc.com.
Item 11. Executive Compensation
The information required by this Item will be contained in our definitive proxy statement for our 2008 Annual Meeting of Stockholders under the captions "Compensation Discussion and Analysis," "Corporate Governance and Board Matters" and "Compensation Committee Report" and is incorporated by reference herein.
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
The information required by this Item will be contained in our definitive proxy statement for our 2008 Annual Meeting of Stockholders under the captions "Compensation Discussion and Analysis" and "Security Ownership of Certain Beneficial Owners and Management" and is incorporated by reference herein.
Item 13. Certain Relationships and Related Transactions, and Director Independence
The information required by this Item will be contained in our definitive proxy statement for our 2008 Annual Meeting of Stockholders under the captions "Certain Relationships and Related Transactions" and "Corporate Governance and Board Matters" and is incorporated by reference herein.
74
Item 14. Principal Accounting Fees and Services
The information required by this Item will be contained in our definitive proxy statement for our 2008 Annual Meeting of Stockholders under the caption "Proposal TwoRatification of Appointment of Independent Registered Public Accounting Firm" and is incorporated by reference herein.
Item 15. Exhibits, Financial Statement Schedules
(a) The following are filed as part of this Annual Report on Form 10-K:
1. Financial Statements
The following consolidated financial statements beginning on page F-1 are included in this Annual Report on Form 10-K:
-
- Consolidated
Balance Sheets as of December 31, 2007 and December 31, 2006
-
- Consolidated
Statements of Operations for the years ended December 31, 2007, December 31, 2006 and December 31, 2005
-
- Consolidated
Statements of Redeemable Convertible Preferred Stock and Stockholders' Deficit for the years ended December 31, 2007, December 31, 2006 and
December 31, 2005
-
- Consolidated
Statements of Cash Flows for the years ended December 31, 2007, December 31, 2006 and December 31, 2005
-
- Notes to the Consolidated Financial Statements
(b) Exhibits
The exhibits listed in the Exhibit Index immediately preceding the exhibits are filed with or incorporated by reference in this Annual Report on Form 10-K.
(c) Financial Statement Schedules
All other schedules have been omitted since the required information is not present, or not present in amounts sufficient to require submission of the schedule, or because the information required is included in the consolidated financial statements or the Notes thereto.
75
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| ENERNOC, INC. | ||||
March 28, 2008 |
By: |
/s/ TIMOTHY G. HEALY Name: Timothy G. Healy Title: Chairman of the Board and Chief Executive Officer |
||
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| Signature | Title | Date | ||
|---|---|---|---|---|
| /s/ TIMOTHY G. HEALY Timothy G. Healy | Chairman of the Board, Chief Executive Officer and Director (principal executive officer) |
March 28, 2008 | ||
/s/ NEAL C. ISAACSON Neal C. Isaacson |
Chief Financial Officer (principal financial officer and principal accounting officer) |
March 28, 2008 |
||
/s/ DAVID B. BREWSTER David B. Brewster |
Director and President |
March 28, 2008 |
||
/s/ TJ GLAUTHIER TJ Glauthier |
Director |
March 28, 2008 |
||
/s/ ADAM GROSSER Adam Grosser |
Director |
March 28, 2008 |
||
/s/ RICHARD DIETER Richard Dieter |
Director |
March 28, 2008 |
||
/s/ WILLIAM D. LESE William D. Lese |
Director |
March 28, 2008 |
76
EnerNOC, INC.
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
F-1
Report of Independent Registered Public Accounting Firm
To the Board of Directors and Stockholders of EnerNOC, Inc.:
We have audited the accompanying consolidated balance sheets of EnerNOC, Inc. as of December 31, 2007 and 2006, and the related consolidated statements of operations, changes in redeemable convertible preferred stock and stockholders' deficit, and cash flows for each of the three years in the period ended December 31, 2007. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Company's internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of EnerNOC, Inc. as of December 31, 2007 and 2006, and the consolidated results of its operations and its cash flows for each of the three years in the period ended December 31, 2007, in conformity with U.S. generally accepted accounting principles.
As discussed in Note 1 to the consolidated financial statements, effective January 1, 2006, the Company adopted the provisions of Statement of Financial Accounting Standards, No. 123(R), Share-Based Payment.
| /s/ Ernst & Young LLP |
Boston,
Massachusetts
March 17, 2008
F-2
EnerNOC, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
| |
December 31, 2007 |
December 31, 2006 |
|||||||
|---|---|---|---|---|---|---|---|---|---|
| Assets | |||||||||
| Current assets | |||||||||
| Cash and cash equivalents | $ | 70,242 | $ | 9,184 | |||||
| Restricted cash | 1,248 | 510 | |||||||
| Marketable securities | 15,500 | | |||||||
| Accounts receivable, net allowance for doubtful accounts of $368 at December 31, 2007 and $7 at December 31, 2006 | 10,134 | 4,447 | |||||||
| Deposits, current | 1,955 | | |||||||
| Prepaid expenses and other current assets | 2,315 | 738 | |||||||
| Total current assets | 101,394 | 14,879 | |||||||
| Property and equipment, net | 23,195 | 6,547 | |||||||
| Goodwill and other intangible assets, net | 16,421 | 7,132 | |||||||
| Restricted cashnon current | 1,770 | | |||||||
| Deposits, non-current | 12,496 | 522 | |||||||
| Other assets | 308 | 870 | |||||||
| Total assets | $ | 155,584 | $ | 29,950 | |||||
| Liabilities and Stockholders' Equity (Deficit) | |||||||||
| Current liabilities | |||||||||
| Accounts payable | $ | 2,112 | $ | 1,660 | |||||
| Accrued capacity payments | 9,069 | 5,210 | |||||||
| Current portion of deferred related-party acquisition payments | 431 | 1,989 | |||||||
| Accrued payroll and related expenses | 4,902 | 1,275 | |||||||
| Accrued Mdenergy earn-out | 3,357 | | |||||||
| Accrued expenses and other current liabilities | 1,586 | 1,215 | |||||||
| Deferred revenue | 2,403 | 971 | |||||||
| Contingent consideration provision | 2,247 | | |||||||
| Current portion of long-term debt | 2,451 | 1,128 | |||||||
| Total current liabilities | 28,558 | 13,448 | |||||||
| Long-term liabilities | |||||||||
| Long-term debt, net of current portion | 3,640 | 4,072 | |||||||
| Deferred related-party acquisition payments, net of current portion | | 400 | |||||||
| Deferred revenue | | 420 | |||||||
| Contingent consideration provision | | 2,247 | |||||||
| Redeemable convertible preferred stock warrant liability | | 606 | |||||||
| Deferred tax liability | 100 | | |||||||
| Other liabilities | 869 | 149 | |||||||
| Total long-term liabilities | 4,609 | 7,894 | |||||||
| Commitments and contingencies (Note 16) | | | |||||||
| Redeemable convertible preferred stock | |||||||||
| Series A Redeemable Convertible Preferred Stock, $0.001 par value; 713,118 shares authorized, issued, and outstanding at December 31, 2006, at redemption value | | 828 | |||||||
| Series A-1 Redeemable Convertible Preferred Stock, $0.001 par value; 916,212 shares authorized, issued, and outstanding at December 31, 2006, at redemption value | | 1,739 | |||||||
| Series B Redeemable Convertible Preferred Stock, $0.001 par value; 1,177,097 shares authorized, issued and outstanding at December 31, 2006, at redemption value | | 7,685 | |||||||
| Series B-1 Redeemable Convertible Preferred Stock, $0.001 par value; 296,632 shares authorized, 277,778 shares issued and outstanding at December 31, 2006, at redemption value | | 2,691 | |||||||
| Series C Redeemable Convertible Preferred Stock, $0.001 par value; 271,346 shares authorized, 104,921 shares issued and outstanding at December 31, 2006, at redemption value | | 5,749 | |||||||
| Stockholders' equity (deficit) | |||||||||
| Common stock, non-convertible, $0.001 par value; 50,000,000 shares authorized, 19,180,504 and 4,245,324 shares issued and outstanding at December 31, 2007 and December 31, 2006, respectively | 19 | 4 | |||||||
| Additional paid-in capital | 156,250 | 771 | |||||||
| Redeemable convertible preferred stock subscription receivable | | (800 | ) | ||||||
| Accumulated deficit | (33,852 | ) | (10,059 | ) | |||||
| Total stockholders' equity (deficit) | 122,417 | (10,084 | ) | ||||||
| Total liabilities, redeemable convertible preferred stock and stockholders' equity (deficit) | $ | 155,584 | $ | 29,950 | |||||
See accompanying notes.
F-3
EnerNOC, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
| |
Year Ended December 31, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| |
2007 | 2006 | 2005 | |||||||||
| Revenues | $ | 60,838 | $ | 26,100 | $ | 9,826 | ||||||
| Cost of revenues | 38,949 | 16,839 | 4,190 | |||||||||
| Gross profit | 21,889 | 9,261 | 5,636 | |||||||||
| Operating expenses: | ||||||||||||
| Selling and marketing expenses | 17,145 | 5,932 | 2,228 | |||||||||
| General and administrative expenses | 27,917 | 8,000 | 4,211 | |||||||||
| Research and development expenses | 3,097 | 955 | 981 | |||||||||
| Total operating expenses | 48,159 | 14,887 | 7,420 | |||||||||
| Loss from operations | (26,270 | ) | (5,626 | ) | (1,784 | ) | ||||||
| Interest and other income | 3,161 | 167 | 291 | |||||||||
| Interest expense | (373 | ) | (312 | ) | (213 | ) | ||||||
| Loss before income tax expense | (23,482 | ) | (5,771 | ) | (1,706 | ) | ||||||
| Provision for income tax expense | (100 | ) | | | ||||||||
| Net loss | $ | (23,582 | ) | $ | (5,771 | ) | $ | (1,706 | ) | |||
| Net loss per share | ||||||||||||
| Basic and diluted | $ | (1.80 | ) | $ | (1.60 | ) | $ | (0.56 | ) | |||
| Weighted average number of basic and diluted shares | 13,106,114 | 3,607,822 | 3,071,733 | |||||||||
See accompanying notes.
F-4
EnerNOC, INC.
CONSOLIDATED STATEMENTS OF CHANGES IN REDEEMABLE CONVERTIBLE PREFERRED STOCK
AND STOCKHOLDERS' DEFICIT
(in thousands, except share data)
| |
Series A Redeemable Convertible Preferred Stock |
Series A-1 Redeemable Convertible Preferred Stock |
Series B Redeemable Convertible Preferred Stock |
Series B-1 Redeemable Convertible Preferred Stock |
Series C Redeemable Convertible Preferred Stock |
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| |
Common Stock | |
|
|
|
||||||||||||||||||||||||||||||||||||||
| |
|
Redeemable Convertible Preferred Stock Subscription Receivable | |
|
|||||||||||||||||||||||||||||||||||||||
| |
Number of Shares | Amount | Number of Shares | Amount | Number of Shares | Amount | Number of Shares | Amount | Number of Shares | Amount | Number of Shares | Amount | Additional Paid-in Capital |
Accumulated Deficit | Total | ||||||||||||||||||||||||||||
| Balances as of December 31, 2004 | 713,118 | $ | 810 | 916,212 | $ | 1,738 | | $ | | | $ | | | $ | | 2,831,003 | $ | 3 | $ | 9 | $ | | $ | (2,509 | ) | $ | 51 | ||||||||||||||||
| Issuance of stock upon exercise of stock options | | | | | | | | | | | 83,633 | | 11 | | | 11 | |||||||||||||||||||||||||||
| Issuance of common shares in connection with the acquisition of Pinpoint Power DR LLC | | | | | | | | | | | 285,220 | | 101 | | | 101 | |||||||||||||||||||||||||||
| Stock-based compensation expense related to issuance of stock options to non-employees | | | | | | | | | | | | | 1 | | | 1 | |||||||||||||||||||||||||||
| Issuance of Series B Redeemable Convertible Preferred Stock, net of issuance costs | | | | | 1,177,097 | 7,643 | | | | | | | | | | 7,643 | |||||||||||||||||||||||||||
| Accretion of issuance costs | | 9 | | 1 | | 20 | | | | | | | | | (30 | ) | | ||||||||||||||||||||||||||
| Net loss | | | | | | | | | | | | | | | (1,706 | ) | (1,706 | ) | |||||||||||||||||||||||||
| Balances as of December 31, 2005 | 713,118 | 819 | |||||||||||||||||||||||||||||||||||||||||