Item regarding the backgrounds of our executive officers and directors and other information contemplated by Items 401, 405, 406 and 407 of Regulation S-K will be contained in our definitive proxy statement for our 2008 Annual Meeting of Stockholders under the captions "Directors and Executive Officers," "Corporate Governance and Board Matters" and "Section 16(a) Beneficial Ownership Reporting Compliance" and is incorporated by reference herein.

        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 Two—Ratification of Appointment of Independent Registered Public Accounting Firm" and is incorporated by reference herein.


PART IV

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


SIGNATURES

        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

 
  Page
Annual Consolidated Financial Statements of EnerNOC, Inc.:    

Report of Independent Registered Public Accounting Firm

 

F-2

Consolidated Balance Sheets as of December 31, 2007 and 2006

 

F-3

Consolidated Statements of Operations for the Years Ended December 31, 2007, 2006 and 2005

 

F-4

Consolidated Statements of Changes in Redeemable Convertible Preferred Stock and Stockholders' Deficit for the Years Ended December 31, 2007, 2006 and 2005

 

F-5

Consolidated Statements of Cash Flows for the Years Ended December 31, 2007, 2006 and 2005

 

F-6

Notes to Consolidated Financial Statements

 

F-7

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 cash—non 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