As filed with the United States Securitiesand Exchange Commission on July 24, 2024.

Registration No. 333-        

UNITED STATES

SECURITIES ANDEXCHANGE COMMISSION

Washington, D.C. 20549

FORMS-1

REGISTRATIONSTATEMENT

UNDER

THE SECURITIES ACT OF 1933

Complete Solaria,Inc.

(Exact name of registrant as specified in itscharter)

45700 Northport Loop East

Fremont, CA 94538

(510) 270-2507

(Address, Including Zip Code, and TelephoneNumber, Including Area Code, of Registrant’s Principal Executive Offices)

Thurman J. Rodgers

Chief Executive Officer

45700 Northport Loop East

Fremont, CA 94538

(510) 270-2507

(Name, Address, Including Zip Code, and TelephoneNumber, Including Area Code, of Agent For Service)

Copies to:

Michael Penney

Arnold & Porter Kaye Scholer LLP

250 W. 55^th Street

New York, NY 10019

Tel: (212) 836-8000

Approximate date of commencement of proposedsale to the public:

From time to time on or after this registrationstatement is declared effective.

If any of the securitiesbeing registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933,check the following box. ☒

If this Form is filed toregister additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and listthe Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effectiveamendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statementnumber of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effectiveamendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statementnumber of the earlier effective registration statement for the same offering. ☐

Indicate by check mark whetherthe registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerginggrowth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reportingcompany,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

If an emerging growth company,indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financialaccounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. ☒

The registrant herebyamends this registration statement on such date or dates as may be necessary to delay its effective date until the registrant shall filea further amendment which specifically states that this registration statement shall thereafter become effective in accordance with Section8(a) of the Securities Act of 1933, as amended, or until the registration statement shall become effective on such date as the SEC, actingpursuant to said Section 8(a), may determine.

The information inthis preliminary prospectus is not complete and may be changed. The securities described herein may not be sold until the registrationstatement filed with the U.S. Securities and Exchange Commission is declared effective. This preliminary prospectus is not an offer tosell these securities and it is not soliciting an offer to buy these securities in any jurisdiction where the offer or sale is not permitted.

PRELIMINARY PROSPECTUS

SUBJECT TO COMPLETION, DATED JULY 24, 2024

Up to 30,450,000 Shares of Common Stock

This prospectus relates to the potential offerand sale of up to 30,450,000 shares of our common stock, par value $0.0001 per share (the “common stock”), by WhiteLion Capital, LLC (“White Lion” or the “Selling Securityholder”).

The shares of common stock to which this prospectusrelates may be issued to White Lion pursuant to the Common Stock Purchase Agreement dated July 16, 2024 between us and White Lion, asamended by Amendment No. 1 to the Common Stock Purchase Agreement dated July 24, 2024 (as amended, the “White Lion Purchase Agreement”)establishing an equity line of credit. Such shares of our common stock include (a) up to 30,000,000 shares of common stock that we mayelect, in our sole discretion, to issue and sell to White Lion from time to time during the White Lion Commitment Period (as defined below)under the White Lion Purchase Agreement (assuming the shares to be issued are sold at a price of $1.00 per share) and (b) up to 450,000shares of common stock (the “Commitment Shares”) issuable to White Lion as consideration for it entering into the WhiteLion Purchase Agreement (assuming the shares to be issued are sold at a price of $1.00 per share). See “The White Lion Transaction”below for a description of the White Lion Purchase Agreement and “Selling Securityholder” for additional informationregarding White Lion.

The actual number of shares of our common stockissuable to White Lion will vary depending on the then-current market price of shares of our common stock sold to the Selling Securityholderunder the White Lion Purchase Agreements and are subject to the further limitations set forth in the White Lion Purchase Agreement.

We are not selling any securities under this prospectusand will not receive any of the proceeds from the sale of shares of common stock by the Selling Securityholder. Additionally, we willnot receive any proceeds from the issuance or sale of the Commitment Shares. However, we may receive proceeds of up to $30.0 million fromthe sale of our common stock to the Selling Securityholder pursuant to the White Lion Purchase Agreement after the date of this prospectus. The actual proceeds from White Lion may be less than this amount depending on the number of shares of our common stock sold andthe price at which the shares of our common stock are sold..

The Selling Securityholder may sell or otherwisedispose of the shares of common stock described in this prospectus in a number of different ways and at varying prices. See “Planof Distribution” for more information about how the Selling Securityholder may sell or otherwise dispose of the shares of commonstock being registered pursuant to this prospectus. The Selling Securityholder is an “underwriter” within the meaning of Section2(a)(11) of the Securities Act of 1933, as amended.

The Selling Securityholder will pay all brokeragefees and commissions and similar expenses attributable to the sales of its common stock. We will pay the expenses (except brokerage feesand commissions and similar expenses) incurred in registering the shares of common stock offered hereby, including legal and accountingfees. See “Plan of Distribution.”

Our common stock and Public Warrants are listedon The Nasdaq Stock Market under the symbols “CSLR” and “CSLRW,” respectively. On July 22, 2024, the last reportedsales price of our common stock was $1.50 per share and the last reported sales price of our Public Warrants was $0.10 per Public Warrant.

Weare an “emerging growth company” as defined under U.S. federal securities laws and, as such, have elected to comply withreduced public company reporting requirements. This prospectus complies with the requirements that apply to an issuer that is an emerginggrowth company.

Investingin our securities involves a high degree of risk. You should review carefully the risks and uncertainties described in the sectiontitled “Risk Factors” beginning on page 6 of this prospectus, and under similar headings in any amendments orsupplements to this prospectus.

Neitherthe Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities, or passedupon the accuracy or adequacy of this prospectus. Any representation to the contrary is a criminal offense.

Prospectusdated             , 2024

ABOUTTHIS PROSPECTUS

This prospectus is part ofa registration statement on Form S-1 that we filed with the Securities and Exchange Commission (the “SEC”) using the“shelf” registration process. Under this shelf registration process, the Selling Securityholder may, from time to time, sellthe securities offered by it described in this prospectus. We will not receive any proceeds from the sale by such Selling Securityholderof the securities offered by it described in this prospectus.

Neither we nor the SellingSecurityholder have authorized anyone to provide you with any information or to make any representations other than those contained inthis prospectus or any applicable prospectus supplement or any free writing prospectuses prepared by or on behalf of us or to which wehave referred you. Neither we nor the Selling Securityholder take responsibility for, and can provide no assurance as to the reliabilityof, any other information that others may give you. Neither we nor the Selling Securityholder will make an offer to sell these securitiesin any jurisdiction where the offer or sale is not permitted.

Wemay also provide a prospectus supplement or post-effective amendment to the registration statement to add information to, or update orchange information contained in, this prospectus. You should read both this prospectus and any applicable prospectus supplement or post-effectiveamendment to the registration statement together with the additional information to which we refer you in the section of this prospectustitled “Where You Can Find More Information.”

OnJuly 17, 2023, FACT filed an application for deregistration with the Cayman Islands Registrar of Companies, together with the necessaryaccompanying documents, and filed a certificate of incorporation and a certificate of corporate domestication with the Secretary of Stateof the State of Delaware, under which FACT was domesticated and continues as a Delaware corporation, changing its name to “CompleteSolaria, Inc.”

CompleteSolaria, Inc. (f/k/a Complete Solar Holding Corporation), a Delaware corporation (“Legacy Complete Solaria”), FACT,Jupiter Merger Sub I Corp., a Delaware corporation and wholly-owned subsidiary of FACT (“First Merger Sub”), JupiterMerger Sub II LLC, a Delaware limited liability company and a wholly-owned subsidiary of FACT (“Second Merger Sub”)and The Solaria Corporation, a Delaware corporation and a wholly-owned indirect subsidiary of Legacy Complete Solaria (“Solaria”),entered into that certain Amended and Restated Business Combination Agreement, dated as of May 26, 2023 (as may be further amended, supplementedor otherwise modified from time to time, the “Business Combination Agreement”). Pursuant to the terms and subjectto the conditions of the Business Combination, on July 18, 2023, (i) First Merger Sub merged with and into Legacy Complete Solaria withLegacy Complete Solaria surviving as a wholly-owned subsidiary of FACT (the “First Merger”), (ii) immediately thereafterand as part of the same overall transaction, Legacy Complete Solaria merged with and into Second Merger Sub, with Second Merger Sub survivingas a wholly-owned subsidiary of FACT (the “Second Merger”), and FACT changed its name to “Complete Solaria,Inc.” and Second Merger Sub changed its name to “CS, LLC” and (iii) immediately after the consummation of the SecondMerger and as part of the same overall transaction, Solaria merged with and into a newly-formed Delaware limited liability company andwholly-owned subsidiary of FACT and changed its name to “SolarCA LLC” (“Third Merger Sub”), with ThirdMerger Sub surviving as a wholly-owned subsidiary of FACT (the “Additional Merger,” and together with the First Mergerand the Second Merger, the “Mergers”).

Unlessthe context indicates otherwise, references in this prospectus to the “Complete Solaria,” “we,” “us,”“our,” the “Company” and similar terms refer to Complete Solaria, Inc. (f/k/a Freedom Acquisition I Corp.) andits consolidated subsidiaries. References to “FACT” refer to the predecessor company prior to the consummation of the BusinessCombination.

This prospectus contains summaries of certain provisions containedin some of the documents described herein, but reference is made to the actual documents for complete information. All of the summariesare qualified in their entirety by the actual documents. Copies of some of the documents referred to herein have been filed, will be filedor will be incorporated by reference as exhibits to the registration statement of which this prospectus is a part, and you may obtaincopies of those documents as described below under “Where You Can Find More Information”.

SPECIALNOTE REGARDING FORWARD-LOOKING STATEMENTS

Certainstatements in this prospectus may constitute “forward-looking statements” for purposes of the federal securities laws. Ourforward-looking statements include, but are not limited to, statements regarding our and our management team’s expectations, hopes,beliefs, intentions or strategies regarding the future. In addition, any statements that refer to projections, forecasts or other characterizationsof future events or circumstances, including any underlying assumptions, are forward-looking statements. The words “anticipate,”“believe,” “continue,” “could,” “estimate,” “expect,” “intends,”“may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,”“should,” “will,” “would” and similar expressions may identify forward-looking statements, but theabsence of these words does not mean that a statement is not forward-looking. These forward-looking statements include, without limitation,statements about:

Theseforward-looking statements are based on information available as of the date of this prospectus, and current expectations, forecastsand assumptions, and involve a number of judgments, risks and uncertainties. Accordingly, forward-looking statements should not be reliedupon as representing our views as of any subsequent date, and we do not undertake any obligation to update forward-looking statementsto reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise,except as may be required under applicable securities laws.

Youshould read this prospectus and the documents that we reference in this prospectus and have filed as exhibits to the registration statement,of which this prospectus is a part, completely and with the understanding that our actual future results may be materially differentfrom what we expect. We qualify all of our forward-looking statements by these cautionary statements.

Inaddition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. Thesestatements are based upon information available to us as of the date of this prospectus and while we believe such information forms areasonable basis for such statements, such information may be limited or incomplete, and such statements should not be read to indicatethat we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements areinherently uncertain, and investors are cautioned not to unduly rely upon these statements.

TABLEOF CONTENTS

You should rely only on theinformation contained in this prospectus, any supplement to this prospectus or in any free writing prospectus, filed with the Securitiesand Exchange Commission. Neither we nor the Selling Securityholder have authorized anyone to provide you with additional information orinformation different from that contained in this prospectus filed with the Securities and Exchange Commission. We take no responsibilityfor, and can provide no assurance as to the reliability of, any other information that others may give you. The Selling Securityholderis offering to sell, and seeking offers to buy, our securities only in jurisdictions where offers and sales are permitted. The informationcontained in this prospectus is accurate only as of the date of this prospectus, regardless of the time of delivery of this prospectusor any sale of our securities. Our business, financial condition, results of operations and prospects may have changed since that date.

For investors outside ofthe United States: Neither we nor the Selling Securityholder have done anything that would permit this offering or possession or distributionof this prospectus in any jurisdiction where action for that purpose is required, other than in the United States. Persons outside theUnited States who come into possession of this prospectus must inform themselves about, and observe any restrictions relating to, theoffering of our securities and the distribution of this prospectus outside the United States.

FREQUENTLYUSED TERMS

“2022Convertible Notes” means the Pre-Signing Convertible Notes and the Post-Signing Convertible Notes issued by Legacy CompleteSolaria.

“April2022 FACT Note” means the unsecured promissory note in the amount of up to $500,000 issued on April 1, 2022, by FACT tothe Sponsor.

“Articlesof Association” means the amended and restated memorandum and articles of association of FACT, dated February 25, 2021.

“BusinessCombination” means the transactions contemplated by the Business Combination Agreement.

“BusinessCombination Agreement” means the amended and restated business combination agreement, dated as of May 26, 2023, by and amongFACT, First Merger Sub, Second Merger Sub, Legacy Complete Solaria and Solaria.

“CaymanIslands Companies Act” means the Companies Act (As Revised) of the Cayman Islands as the same may be amended from time to time.

“Closing”means the closing of the Business Combination.

“ClosingDate” means the date of the Closing.

“Code”means the Internal Revenue Code of 1986, as amended.

“CompleteSolar” means Complete Solar Holding Corporation, a Delaware corporation, prior to the consummation of the Required Transaction.

“CompleteSolaria” or “the Company” means Complete Solaria, Inc. (f/k/a Freedom Acquisition I Corp.), a Delaware corporationand its subsidiaries.

“CompleteSolaria Board” means the board of directors of Complete Solaria.

“CompleteSolaria Capital Stock” means Complete Solaria Common Stock and Complete Solaria Preferred Stock.

“CompleteSolaria Common Stock” means the common stock, par value $0.0001 per share, of Complete Solaria.

“CompleteSolaria Preferred Stock” means the preferred stock, par value $0.0001 per share, of Complete Solaria.

“CompleteSolaria Subscription Agreements” means the Pre-Signing Complete Solaria Subscription Agreements together with the Post-SigningComplete Solaria Subscription Agreements.

“Continental”means Continental Stock Transfer & Trust Company.

“December2022 FACT Note” means the unsecured promissory note in the amount of up to $325,000 issued on December 14, 2022, by FACT toTidjane Thiam, Adam Gishen, Abhishek Bhatia and Edward Zeng.

“DGCL”means the Delaware General Corporation Law, as amended.

“DLLCA”means the Delaware Limited Liability Company Act, as amended.

“Domestication”means the domestication of FACT as a corporation incorporated in the State of Delaware.

“ESPP”means the Complete Solaria, Inc. 2023 Employee Stock Purchase Plan.

“ExchangeAct” means the U.S. Securities Exchange Act of 1934, as amended.

“FACT”means Freedom Acquisition I Corp., a Cayman Islands exempted company, prior to the consummation of the Domestication.

“FACTBoard” means the board of directors of FACT.

“FACTClass A Ordinary Shares” or “Class A Ordinary Shares” means the 34,500,000 Class A ordinary shares, parvalue $0.0001 per share, of FACT prior to the consummation of the Domestication.

“FACTClass B Ordinary Shares” or “Class B Ordinary Shares” means the 8,625,000 Class B ordinary shares, par value$0.0001 per share, of FACT prior to the consummation of the Domestication.

“FACTInitial Shareholders” means the Sponsor, members of the Sponsor, and FACT’s officers and directors.

“FACTOrdinary Shares” means the FACT Class A Ordinary Shares and the FACT Class B Ordinary Shares.

“FACTPrivate Placement Warrants,” “Private Placement Warrants” or “Private Warrants” meansthe 6,266,667 warrants held by the Sponsor that were issued in a private placement at the time of FACT’s IPO, each of which isexercisable for one Class A Ordinary Share at an exercise price of $11.50 per share.

“FACTPublic Warrants” or “Public Warrants” means the 8,625,000 warrants to acquire FACT Class A Ordinary Shares,issued as part of the FACT Public Units, at an initial exercise price of $11.50 per share.

“FACTSpecial Committee” means the special committee of the FACT Board.

“FACTWarrants” means the FACT Private Placement Warrants and the FACT Public Warrants.

“February2023 FACT Note” means the unsecured promissory note in the amount of up to $2,100,000 issued on February 28, 2023, by FACTto the Sponsor.

“FounderShares” means the FACT Class B Ordinary Shares purchased by the Sponsor in a private placement prior to the initial publicoffering, and the FACT Class A Ordinary Shares that issued upon the conversion thereof.

“GAAP”means U.S. generally accepted accounting principles.

“HSRAct” means the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.

“InvestmentCompany Act” means the Investment Company Act of 1940, as amended.

“IPO”means FACT’s initial public offering of its units, ordinary shares and warrants pursuant to its registration statement on FormS-1 declared effective by the SEC on February 25, 2021 (SEC File No. 333-252940).

“June2022 FACT Note” means the unsecured promissory note in the amount of up to $500,000 issued on June 6, 2022, by FACT to theSponsor.

“May2023 FACT Note” means the unsecured promissory note in the amount of up to $300,000 issued on May 31, 2023, by FACT to theSponsor.

“Merger Warrants”means warrants issued to certain equityholders of Legacy Complete Solaria received as consideration in connection with the exchange oftheir capital stock held in Legacy Complete Solaria.

“LegacyComplete Solaria” means, prior to the Business Combination, Complete Solaria, Inc. (f/k/a Complete Solar Holding Corporation),a Delaware corporation which, pursuant to the Business Combination, became a direct, wholly owned subsidiary of Complete Solaria, Inc.and was renamed CS, LLC.

“Nasdaq”means the Nasdaq Stock Market.

“NYSE”means the New York Stock Exchange.

“OriginalBusiness Combination Agreement” means the business combination agreement, dated as of October 3, 2022, by and among FACT, FirstMerger Sub, Second Merger Sub, Complete Solaria and Solaria, as amended by that certain First Amendment to Business Combination Agreement,dated as of December 26, 2022, as further amended by that certain Second Amendment to Business Combination Agreement, dated as of January17, 2023.

“Post-SigningConvertible Notes” means the convertible promissory notes issued by Complete Solaria pursuant to the Post-Signing CompleteSolaria Subscription Agreements.

“Post-SigningComplete Solaria Subscription Agreements” means the additional subscription agreements entered into by Complete Solaria andcertain investors pursuant to which such investors purchased Post-Signing Convertible Notes from Complete Solaria following the dateof the Original Business Combination Agreement, on terms substantially similar to, or no less favorable in all material respects to CompleteSolaria than the Pre-Signing Complete Solaria Subscription Agreements.

“Pre-SigningComplete Solaria Subscription Agreements” means the note subscription agreements entered into by Legacy Complete Solaria andcertain investors pursuant to which such investors purchased Pre-Signing Convertible Notes from Legacy Complete Solaria prior to dateof the Original Business Combination Agreement.

“Pre-SigningConvertible Notes” means the convertible promissory notes issued by Legacy Complete Solaria pursuant to the Pre-Signing CompleteSolaria Subscription Agreements.

“PublicShareholders” means the holders of the Public Shares.

“PublicShares” means the FACT Class A Ordinary Shares.

“RequiredTransaction” means the transactions contemplated by the Required Transaction Merger Agreement, including the merger of Solariawith and into a wholly-owned subsidiary of Legacy Complete Solaria, which were consummated on November 4, 2022.

“RequiredTransaction Merger Agreement” means that certain merger agreement by and among Complete Solaria, Complete Solaria Midco, LLC,a Delaware limited liability company and a wholly-owned subsidiary of Solaria, Complete Solaria Merger Sub, Inc., a Delaware corporationand a wholly-owned subsidiary of Midco, Solaria, and Fortis Advisors LLC, a Delaware limited liability company, solely in its capacityas the representative of Solaria’s stockholders.

“SEC”means the U.S. Securities and Exchange Commission.

“SecuritiesAct” means the Securities Act of 1933, as amended.

“Solaria”means The Solaria Corporation, a Delaware corporation and a wholly-owned subsidiary of Complete Solaria.

“Sponsor”means Freedom Acquisition I LLC, a Cayman Islands limited liability company.

“TransferAgent” means Continental Stock Transfer & Trust Company.

“TrustAccount” means the trust account established at the consummation of FACT’s IPO that holds the proceeds of the IPO andis maintained by Continental, acting as trustee.

“Warrants”means, collectively, the Private Warrants, the Public Warrants and the Working Capital Warrants.

“Working Capital Warrants” means up warrants issuedto certain equityholders of Legacy Complete Solaria.

RiskFactors

Investingin our securities involves a high degree of risk. You should carefully consider the risks and uncertainties described below togetherwith all of the other information contained in this prospectus, including our financial statements and related notes appearing at theend of this prospectus and in the section titled “Management’s Discussion and Analysis of Financial Condition and Resultsof Operations,” before deciding to invest in our securities. If any of the events or developments described below were to occur,our business, prospects, operating results and financial condition could suffer materially, the trading price of our common stock coulddecline, and you could lose all or part of your investment. The risks and uncertainties described below are not the only ones we face.Additional risks and uncertainties not presently known to us or that we currently believe to be immaterial may also adversely affectour business.

RisksRelated to our Businesses and Industry

Ourbusiness currently depends in part on the availability of rebates, tax credits and other financial incentives. The expiration, eliminationor reduction of these rebates, credits or incentives or the ability to monetize them could adversely impact our business.

U.S.federal, state and local government bodies provide incentives to end users, distributors, system integrators and manufacturers of solarenergy systems to promote solar electricity in the form of rebates, tax credits and other financial incentives such as system performancepayments, payments for renewable energy credits associated with renewable energy generation and the exclusion of solar energy systemsfrom property tax assessments. These incentives enable us to lower the price charged to customers for energy and for solar energy systems.However, these incentives may expire on a particular date, end when the allocated funding is exhausted or be reduced or terminated assolar energy adoption rates increase. These reductions or terminations often occur without warning.

TheInflation Reduction Act (the “IRA”) extended and modified prior law applicable to tax credits that are available withrespect to solar energy systems. Under the IRA, the following credits are available: (i) a production tax credit under Code Section 44(for facilities that begin construction before January 1, 2025) and Code Section 45Y (for facilities that begin construction betweenJanuary 1, 2025 and the year that is four calendar years after the year in which certain U.S. greenhouse gas emissions percentages aremet) (the “PTC”) in connection with the installation of certain solar facilities and energy storage technology, (ii)an investment tax credit under Code Section 48 (for facilities that begin construction before January 1, 2025) and Code Section 48E (forfacilities that begin construction between January 1, 2025 and the year that is four calendar years after the year in which certain U.S.greenhouse gas emissions percentages are met) (the “ITC”) in connection with the installation of certain solar facilitiesand energy storage technology, and (iii) a residential clean energy credit (the “Section 25D Credit”) in connectionwith the installation of property that uses solar energy to generate electricity for residential use.

Priorto the IRA, the PTC for solar facilities had phased out and was no longer available. The IRA reinstated the PTC for solar facilities.The PTC available to a taxpayer in a taxable year is equal to a certain rate multiplied by the kilowatt hours of electricity producedby the taxpayer from solar energy at a facility owned by it and sold to an unrelated party during that taxable year. The base rate forthe PTC is 0.3 cents. This rate is increased to 1.5 cents for projects that (i) have a maximum net output of less than one MW AC, (ii)begin construction before January 29, 2023, or (iii) meet certain prevailing wage and apprenticeship requirements. It also may be increasedfor projects that include a certain percentage of components that were produced in the United States, projects that are located in certainenergy communities, and projects that are located in low-income communities.

TheITC available to a taxpayer in a taxable year is equal to the “energy percentage” of the basis of “energy property”placed in service by the taxpayer during that taxable year. “Energy property” includes equipment that uses solar energy togenerate electricity (including structural components that are necessary to the functioning of a solar facility as a whole) and certainenergy storage systems (including batteries included as part of or adjacent to a solar facility). The base “energy percentage”for the ITC is 6%. This energy percentage is increased to 30% for projects that (i) have a maximum net output of less than one MW AC,(ii) begin construction before January 29, 2023, or (iii) meet certain prevailing wage and apprenticeship requirements. It also may beincreased for projects that include a certain percentage of components that were produced in the United States, projects that are locatedin certain energy communities, and projects that are located in low-income communities. ITCs are subject to recapture if, during thefive-year period after a facility is placed in service, the facility is sold, exchanged, involuntarily converted, or ceases its businessusage. If the event that causes such recapture occurs within the first year after a project is placed in service, 100% of the ITCs willbe recaptured. The recapture percentage is reduced 20% for each subsequent year. Historically, we have utilized the ITC when availablefor both residential and commercial leases and power purchase agreements, based on ownership of the solar energy system.

TheSection 25D Credit available to a taxpayer is equal to the “applicable percentage” of expenditures for property that usessolar energy to generate electricity for use in a dwelling unit used as a residence by the taxpayer. The applicable percentage is 26%for such systems that are placed in service before January 1, 2022, 30% for such systems that are placed in service after December 31,2021 and before January 1, 2033, 26% for such systems that are placed in service in 2033, and 22% for such systems that are placed inservice in 2034. The Section 25D Credit is scheduled to expire effective January 1, 2035. Although it is unlikely that Complete Solariawould qualify for the Section 25D Credit, the availability of the Section 25D Credit may impact the prices of its solar energy systems.

Reductionsin, eliminations of, or expirations of, governmental incentives could adversely impact results of operations and ability to compete inthis industry by increasing the cost of capital, causing us to increase the prices of our energy and solar energy systems and reducethe size of our addressable market.

Weare an “emerging growth company” and a “smaller reporting company” and we cannot be certain if the reduced reportingrequirements applicable to these companies will make our common stock less attractive to investors.

Weare an “emerging growth company,” as defined in the JOBS Act. For as long as we continue to be an emerging growth company,we intend to take advantage of exemptions from various reporting requirements that apply to other public companies that are not emerginggrowth companies, including:

Underthe JOBS Act, emerging growth companies can also delay adopting new or revised accounting standards until such time as those standardsapply to private companies. We have elected to avail ourselves of this exemption from new or revised accounting standards and, therefore,will not be subject to the same new or revised accounting standards as other public companies that are not emerging growth companies.As a result, our financial statements may be different from companies that comply with the new or revised accounting pronouncements asof public company effective dates.

Wewill remain an emerging growth company until the earliest to occur of: (1) the last day of the fiscal year in which we have at least$1.235 billion in total annual gross revenues; (2) the date we qualify as a “large accelerated filer,” with at least $700.0million of equity securities held by non-affiliates; (3) the date on which we have issued more than $1.0 billion in non-convertible debtsecurities during the prior three-year period; and (4) the last day of the fiscal year ending after the fifth anniversary of our IPO.

Evenafter we no longer qualify as an emerging growth company, we may still qualify as a “smaller reporting company,” as definedin the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which would allow us to continue to takeadvantage of many of the same exemptions from disclosure requirements, including not being required to comply with the auditor attestationrequirements of Section 404 of the Sarbanes-Oxley Act and reduced disclosure obligations regarding executive compensation our periodicreports and proxy statements.

Wecannot predict if investors will find our securities less attractive because we may rely on these exemptions. If some investors findour common stock less attractive as a result, there may be a less active trading market for our securities and the trading price of oursecurities may be more volatile.

Existingregulations and policies and changes to these regulations and policies may present technical, regulatory, and economic barriers to thepurchase and use of solar power products, which may significantly reduce demand for our products and services.

Themarket for electric generation products is heavily influenced by federal, state and local government laws, regulations and policies concerningthe electric utility industry in the United States and abroad, as well as policies promulgated by electric utilities. These regulationsand policies often relate to electricity pricing and technical interconnection of customer-owned electricity generation, and changesthat make solar power less competitive with other power sources could deter investment in the research and development of alternativeenergy sources as well as customer purchases of solar power technology, which could in turn result in a significant reduction in thedemand for our solar power products. The market for electric generation equipment is also influenced by trade and local content laws,regulations and policies that can discourage growth and competition in the solar industry and create economic barriers to the purchaseof solar power products, thus reducing demand for our solar products. In addition, on-grid applications depend on access to the grid,which is also regulated by government entities. We anticipate that our solar power products and our installation will continue to besubject to oversight and regulation in accordance with federal, state, local and foreign regulations relating to construction, safety,environmental protection, utility interconnection and metering, trade, and related matters. It is difficult to track the requirementsof individual states or local jurisdictions and design equipment to comply with the varying standards. In addition, the United Statesand European Union, among others, have imposed tariffs or are in the process of evaluating the imposition of tariffs on solar panels,solar cells, polysilicon, and potentially other components. These and any other tariffs or similar taxes or duties may increase the priceof our solar products and adversely affect our cost reduction roadmap, which could harm our results of operations and financial condition.Any new regulations or policies pertaining our solar power products may result in significant additional expenses for our customers,which could cause a significant reduction in demand for our solar power products.

Werely on net metering and related policies to offer competitive pricing to customers in many of our current markets and changes to netmetering policies may significantly reduce demand for electricity from residential solar energy systems.

Netmetering is one of several key policies that have enabled the growth of distributed generation solar energy systems in the United States,providing significant value to customers for electricity generated by their residential solar energy systems but not directly consumedon-site. Net metering allows a homeowner to pay his or her local electric utility for power usage net of production from the solar energysystem or other distributed generation source. Homeowners receive a credit for the energy an interconnected solar energy system generatesin excess of that needed by the home to offset energy purchases from the centralized utility made at times when the solar energy systemis not generating sufficient energy to meet the customer’s demand. In many markets, this credit is equal to the residential retailrate for electricity and in other markets, such as Hawaii and Nevada, the rate is less than the retail rate and may be set, for example,as a percentage of the retail rate or based upon a valuation of the excess electricity. In some states and utility territories, customersare also reimbursed by the centralized electric utility for net excess generation on a periodic basis.

Netmetering programs have been subject to legislative and regulatory scrutiny in some states and territories including, but not limitedto, California, New Jersey, Arizona, Nevada, Connecticut, Florida, Maine, Kentucky, Puerto Rico and Guam. These jurisdictions, by statute,regulation, administrative order or a combination thereof, have recently adopted or are considering new restrictions and additional changesto net metering programs either on a state-wide basis or within specific utility territories. Many of these measures were introducedand supported by centralized electric utilities. These measures vary by jurisdiction and may include a reduction in the rates or valueof the credits customers are paid or receive for the power they deliver back to the electrical grid, caps or limits on the aggregateinstalled capacity of generation in a state or utility territory eligible for net metering, expiration dates for and phasing out of netmetering programs, replacement of net metering programs with alternative programs that may provide less compensation and limits on thecapacity size of individual distributed generation systems that can qualify for net metering. Net metering and related policies concerningdistributed generation also received attention from federal legislators and regulators.

InCalifornia, the California Public Utilities Commission (“CPUC”) issued an order in 2016 retaining retail-based netmetering credits for residential customers of California’s major utilities as part of Net Energy Metering 2.0 (“NEM 2.0”).Under NEM 2.0, new distributed generation customers receive the retail rate for electricity exported to the grid, less certain non-bypassablefees. Customers under NEM 2.0 also are subject to interconnection charges and time-of-use rates. Existing customers who receive serviceunder the prior net metering program, as well as new customers under the NEM 2.0 program, currently are permitted to remain covered bythem on a legacy basis for a period of 20 years. On September 3, 2020, the CPUC opened a new proceeding to review its current net meteringpolicies and to develop Net Energy Metering 3.0 (“NEM 3.0”), also referred to by the CPUC as the NEM 2.0 successortariff. NEM 3.0 was finalized on December 15, 2022 and will include several changes from previous net metering plans. There will be changesthat impact the amount that homeowners with solar power will be able to recuperate when selling excess energy back to the utility grid.With NEM 3.0, the value of the credits for net exports will be tied to the state’s 2022 Distributed Energy Resources Avoided CostCalculator Documentation (“ACC”). Another significant change with NEM 3.0 will be applied to the netting period: thetime period over which the utilities measure the clean energy being imported or exported. In general, longer netting periods have typicallybeen advantageous for solar power customers because any consumption can be offset with production. NEM 3.0 will instead measure energyusing instantaneous netting, which means interval netting approximately every 15 minutes. This will lead to more NEM customers’electricity registering as exports, now valued at the new, lower ACC value.

Weutilize a limited number of suppliers of solar panels and other system components to adequately meet anticipated demand for our solarservice offerings. Any shortage, delay or component price change from these suppliers or delays and price increases associated with theproduct transport logistics could result in sales and installation delays, cancellations and loss of market share.

Wepurchase solar panels, inverters and other system components from a limited number of suppliers, which makes us susceptible to qualityissues, shortages and price changes. If we fail to develop, maintain and expand relationships with existing or new suppliers, we maybe unable to adequately meet anticipated demand for our solar energy systems or may only be able to offer our systems at higher costsor after delays. If one or more of the suppliers that we rely upon to meet anticipated demand ceases or reduces production, we may beunable to satisfy this demand due to an inability to quickly identify alternate suppliers or to qualify alternative products on commerciallyreasonable terms.

Inparticular, there are a limited number of inverter suppliers. Once we design a system for use with a particular inverter, if that typeof inverter is not readily available at an anticipated price, we may incur additional delay and expense to redesign the system.

Inaddition, production of solar panels involves the use of numerous raw materials and components. Several of these have experienced periodsof limited availability, particularly polysilicon, as well as indium, cadmium telluride, aluminum and copper. The manufacturing infrastructurefor some of these raw materials and components has a long lead time, requires significant capital investment and relies on the continuedavailability of key commodity materials, potentially resulting in an inability to meet demand for these components. The prices for theseraw materials and components fluctuate depending on global market conditions and demand and we may experience rapid increases in costsor sustained periods of limited supplies.

Despiteefforts to obtain components from multiple sources whenever possible, many suppliers may be single-source suppliers of certain components.If we are not able to maintain long-term supply agreements or identify and qualify multiple sources for components, access to suppliesat satisfactory prices, volumes and quality levels may be harmed. We may also experience delivery delays of components from suppliersin various global locations. In addition, while there are alternative suppliers and service providers that we could enter into agreementswith to replace its suppliers on commercially reasonable terms, we may be unable to establish alternate supply relationships or obtainor engineer replacement components in the short term, or at all, at favorable prices or costs. Qualifying alternate suppliers or developingour own replacements for certain components may be time-consuming and costly and may force us to make modifications to our product designs.

Ourneed to purchase supplies globally and our continued international expansion further subjects us to risks relating to currency fluctuations.Any decline in the exchange rate of the U.S. dollar compared to the functional currency of component suppliers could increase componentprices. In addition, the state of the financial markets could limit suppliers’ ability to raise capital if they are required toexpand their production to meet our needs or satisfy our operating capital requirements. Changes in economic and business conditions,wars, governmental changes and other factors beyond our control or which we do not presently anticipate, could also affect suppliers’solvency and ability to deliver components on a timely basis. Any of these shortages, delays or price changes could limit our growth,cause cancellations or adversely affect profitability and the ability to effectively compete in the markets in which the company operates.

Ourbusiness substantially focuses on solar service agreements and transactions with residential customers.

Ourbusiness substantially focuses on solar service agreements and transactions with residential customers. Our energy system sales to homeownersutilize power purchase agreements (“PPAs”), leases, loans and other products and services. We currently offer PPAsand leases through Sunrun, Inc., EverBright, LLC, Sunnova Energy International, and OakStar Bank. If we were to be unable to arrangenew or alternative methods of financing for PPAs and leases on favorable terms, our business, financial condition, results of operationsand prospects could be materially and adversely affected.

Changesin international trade policies, tariffs, or trade disputes could significantly and adversely affect our business, revenues, margins,results of operations, and cash flows.

OnFebruary 7, 2018, safeguard tariffs on imported solar cells and modules went into effect pursuant to Proclamation 9693, which approvedrecommendations to provide relief to U.S. manufacturers and impose safeguard tariffs on imported solar cells and modules, based on theinvestigations, findings, and recommendations of the U.S. International Trade Commission (the “International Trade Commission”).Since 2021, modules are subject to a tariff rate of 15%. Cells are subjected to a tariff-rate quota, under which the first 2.5 GW ofcell imports each year will be exempt from tariffs; and cells imported after the 2.5 GW quota has been reached will be subject to thesame 30% tariff as modules in the first year, with the same 5% decline in each of the three subsequent years. The tariff-free cell quotaapplies globally, without any allocation by country or region.

Thetariffs could materially and adversely affect our business and results of operations. While solar cells and modules based on interdigitatedback contact technology were granted exclusion from these safeguard tariffs on September 19, 2018, our solar products based on othertechnologies continue to be subject to the safeguard tariffs. Although we are actively engaged in efforts to mitigate the effect of thesetariffs, there is no guarantee that these efforts will be successful.

Uncertaintysurrounding the implications of existing tariffs affecting the U.S. solar market and potential trade tensions between the United Statesand other countries is likely to cause market volatility, price fluctuations, supply shortages, and project delays, any of which couldharm our business, and the pursuit of mitigating actions may divert substantial resources from other projects. Further, the Uyghur ForcedLabor Prevention Act may inhibit importation of certain solar modules or components. In addition, the imposition of tariffs is likelyto result in a wide range of impacts to the U.S. solar industry and the global manufacturing market, as well as our business in particular.Such tariffs could materially increase the price of our solar products and result in significant additional costs to the company, itsresellers, and the resellers’ customers, which could cause a significant reduction in demand for the company’s solar powerproducts and greatly reduce our competitive advantage.

Ifwe fail to manage operations and growth effectively, we may be unable to execute our business plan, maintain high levels of customerservice or adequately address competitive challenges.

Wehave experienced significant growth in recent periods as measured by our number of customers; we intend to continue efforts to expandour business within existing and new markets. This growth has placed, and any future growth may place, a strain on management, operationaland financial infrastructure. Our growth requires our management to devote a significant amount of time and effort to maintain and expandrelationships with customers, dealers and other third parties, attract new customers and dealers, arrange financing for growth and manageexpansion into additional markets.

Inaddition, our current and planned operations, personnel, information technology and other systems and procedures might be inadequateto support future growth and may require us to make additional unanticipated investments in its infrastructure. Our success and abilityto further scale our business will depend, in part, on our ability to manage these changes in a cost-effective and efficient manner.

Ifwe cannot manage operations and growth, we may be unable to meet expectations regarding growth, opportunity and financial targets, takeadvantage of market opportunities, execute our business strategies or respond to competitive pressures. This could also result in declinesin quality or customer satisfaction, increased costs, difficulties in introducing new offerings or other operational difficulties. Anyfailure to effectively manage our operations and growth could adversely impact our reputation, business, financial condition, cash flowsand results of operations.

Wehave international activities and customers in the European Union, and plans to continue these efforts, which subjects us to additionalbusiness risks, including logistical and compliance related complexity.

Aportion of our sales are made to customers outside of the United States, and a substantial portion of our supply agreements are withsupply and equipment vendors located outside of the United States. We have solar cell and module production lines located at our outsourcedmanufacturing facilities in Thailand, Vietnam and India. We are also considering other manufacturing locations.

Riskswe face in conducting business internationally include:

Wehave an organizational structure involving entities globally. This increases the potential impact of adverse changes in laws, rules andregulations affecting the free flow of goods and personnel, and therefore heightens some of the risks noted above. Further, this structurerequires us to effectively manage our international inventory and warehouses. If we fail to do so, our shipping movements may not correspondwith product demand and flow. Unsettled intercompany balances between entities could result, if changes in law, regulations or relatedinterpretations occur in adverse tax or other consequences that affect capital structure, intercompany interest rates and legal structure.If we are unable to successfully manage any such risks, any one or more could materially and negatively affect our business, financialcondition and results of operations.

Wehave incurred losses and may be unable to achieve or sustain profitability in the future.

Wehave incurred net losses in the past and had an accumulated deficit of $354.9 million and $85.4 million as of December 31, 2023 and 2022,respectively. We will continue to incur net losses as spending increases to finance the expansion of operations, installation, engineering,administrative, sales and marketing staffs, spending increases on brand awareness and other sales and marketing initiatives, and implementinternal systems and infrastructure to support the company’s growth. We do not know whether revenue will grow rapidly enough toabsorb these costs, and our limited operating history makes it difficult to assess the extent of these expenses or their impact on resultsof operations. Our ability to achieve profitability depends on a number of factors, including but not limited to:

Evenif we do achieve profitability, we may be unable to sustain or increase profitability in the future.

Amaterial drop in the retail price of utility-generated electricity or electricity from other sources could adversely impact our abilityto attract customers which would harm our business, financial condition and results of operations.

Webelieve that a homeowner’s decision to buy solar energy from us is primarily driven by a desire to lower electricity costs. Decreasesin the retail prices of electricity from utilities or other energy sources would harm our ability to offer competitive pricing and couldharm its business. The price of electricity from utilities could decrease as a result of:

A reduction in utility electricityprices would make the purchase of our solar service offerings less attractive. If the retail price of energy available from utilitieswere to decrease due to any of these or other reasons, we would be at a competitive disadvantage. As a result, we may be unable to attractnew homeowners and growth would be limited.

We face competitionfrom both traditional energy companies and renewable energy companies.

The solar energy and renewableenergy industries are both highly competitive and continually evolving as participants strive to distinguish themselves within their marketsand compete with large utilities. We believe that our primary competitors are the traditional utilities that supply energy to potentialcustomers. We compete with these utilities primarily based on price, predictability of price and the ease by which customers can switchto electricity generated by our solar energy systems. If we cannot offer compelling value to its customers based on these factors, thenour business will not grow. Utilities generally have substantially greater financial, technical, operational and other resources thanus. As a result of their greater size, these competitors may be able to devote more resources to the research, development, promotionand sale of their products or respond more quickly to evolving industry standards and changes in market conditions than we can. Utilitiescould also offer other value-added products and services that could help them compete with us even if the cost of electricity they offeris higher than ours. In addition, a majority of utilities’ sources of electricity is non-solar, which may allow utilities to sellelectricity more cheaply than electricity generated by our solar energy systems.

Our businessis concentrated in certain markets including California, putting us at risk of region-specific disruptions.

As of December 31, 2023,a substantial portion of our installations were in California and we expect much of its near-term future growth to occur in California,further concentrating our customer base and operational infrastructure. Accordingly, our business and results of operations are particularlysusceptible to adverse economic, regulatory, political, weather and other conditions in this market and in other markets that may becomesimilarly concentrated. We may not have adequate insurance, including business interruption insurance, to compensate for losses that mayoccur from any such significant events. A significant natural disaster could have a material adverse impact on our business, results ofoperations and financial condition. In addition, acts of terrorism or malicious computer viruses could cause disruptions in our business,our partners’ businesses or the economy as a whole. To the extent that these disruptions result in delays or cancellations of installationsor the deployment of solar service offerings, our business, results of operations and financial condition would be adversely affected.

Our growthstrategy depends on the widespread adoption of solar power technology.

The distributed residentialsolar energy market is at a relatively early stage of development in comparison to fossil fuel-based electricity generation. If additionaldemand for distributed residential solar energy systems fails to develop sufficiently or takes longer to develop than we anticipate, thecompany may be unable to originate additional solar service agreements and related solar energy systems and energy storage systems togrow the business. In addition, demand for solar energy systems and energy storage systems in our targeted markets may not develop tothe extent it anticipates. As a result, we may be unsuccessful in broadening our customer base through origination of solar service agreementsand related solar energy systems and energy storage systems within its current markets or in new markets we may enter.

Many factors may affect thedemand for solar energy systems, including, but not limited to, the following:

The residential solar energyindustry is constantly evolving, which makes it difficult to evaluate our prospects. We cannot be certain if historical growth rates reflectfuture opportunities or its anticipated growth will be realized. The failure of distributed residential solar energy to achieve, or itsbeing significantly delayed in achieving, widespread adoption could have a material adverse effect on our business, financial conditionand results of operations.

Our businesscould be adversely affected by seasonal trends, poor weather, labor shortages, and construction cycles.

Our business is subject tosignificant industry-specific seasonal fluctuations. In the United States, many customers make purchasing decisions towards the end ofthe year in order to take advantage of tax credits. In addition, sales in the new home development market are often tied to constructionmarket demands, which tend to follow national trends in construction, including declining sales during cold weather months.

Natural disasters,terrorist activities, political unrest, economic volatility, and other outbreaks could disrupt our delivery and operations, which couldmaterially and adversely affect our business, financial condition, and results of operations.

Global pandemics or fearof spread of contagious diseases, such as Ebola virus disease (EVD), coronavirus disease 2019 (COVID-19), Middle East respiratory syndrome(MERS), severe acute respiratory syndrome (SARS), H1N1 flu, H7N9 flu, avian flu and monkeypox, as well as hurricanes, earthquakes, tsunamis,or other natural disasters could disrupt our business operations, reduce or restrict operations and services, incur significant coststo protect its employees and facilities, or result in regional or global economic distress, which may materially and adversely affectbusiness, financial condition, and results of operations. Actual or threatened war, terrorist activities, political unrest, civil strife,future disruptions in access to bank deposits or lending commitments due to bank failures and other geopolitical uncertainty could havea similar adverse effect on our business, financial condition, and results of operations. On February 24, 2022, the Russian Federationlaunched an invasion of Ukraine that has had an immediate impact on the global economy resulting in higher energy prices and higher pricesfor certain raw materials and goods and services which in turn is contributing to higher inflation in the United States and other countriesacross the globe with significant disruption to financial markets. We have outsourced product development and software engineering inUkraine and we may potentially indirectly be adversely impacted any significant disruption it has caused and may continue to escalate.The recent Israel-Palestine Israel has created volatility in the global capital markets and may have further global economic consequences,including disruptions of the global supply chain and energy markets. Any one or more of these events may impede our operation and deliveryefforts and adversely affect sales results, or even for a prolonged period of time, which could materially and adversely affect our business,financial condition, and results of operations. We cannot predict the full effects the supply chain constraints will have on our business,cash flows, liquidity, financial condition and results of operations at this time due to numerous uncertainties.

We dependon a limited number of customers and sales contracts for a significant portion of revenues, and the loss of any customer or cancellationof any contract may cause significant fluctuations or declines in revenues.

In 2021, 2022 and 2023, ourtop customer, Sunrun Inc., accounted for 63%, 47% and 55% of our total revenues from continuing operations, respectively. We anticipatethat our dependence on a limited number of customers will continue for the foreseeable future. As a result of customer concentration,our financial performance may fluctuate significantly from period to period based, among others, on exogenous circumstances related toits clients. In addition, any one of the following events may materially adversely affect cash flows, revenues and results of operations:

We are exposedto the credit risk of customers and payment delinquencies on its accounts receivables.

While customer defaults havebeen immaterial to date, we expect that the risk of customer defaults may increase as we grow our business. If we experience increasedcustomer credit defaults, our revenue and our ability to raise new investment funds could be adversely affected. If economic conditionsworsen, certain of our customers may face liquidity concerns and may be unable to satisfy their payment obligations to us on a timelybasis or at all, which could have a material adverse effect on our financial condition and results of operations.

Rising interestrates may adversely impact our business.

Due to recent increases ininflation, the U.S. Federal Reserve has raised its benchmark interest rates. Increases in the federal benchmark rate could result in anincrease in market interest rates, which may increase our interest expense and the costs of refinancing existing indebtedness or obtainingnew debt. Consequently, rising interest rates will increase cost of capital. As a result, rising interest rates may have an adverse impacton our ability to offer attractive pricing on solar service agreements to customers. If in the future we have a need for significant borrowingsand interest rates increase, that would increase the cost of the solar systems purchased us, which either would make those systems moreexpensive for customers, which is likely to reduce demand, or would lower operating margins, or both.

We may notrealize the anticipated benefits of past or future acquisitions, and integration of these acquisitions may disrupt our business.

In November 2022, we acquiredThe Solaria Corporation, after which Complete Solar was renamed “Complete Solaria, Inc.” In October 2023, we subsequentlysold solar panel assets of The Solaria Corporation, including intellectual property and customer contracts, to Maxeon Solar Technologies,Ltd, which resulted in an impairment loss of $147.5 million and loss on disposal of $1.8 million. In the future, we may acquire additionalcompanies, project pipelines, products or technologies, or enter into joint ventures or other strategic initiatives. Our ability as anorganization to integrate acquisitions is unproven. We may not realize the anticipated benefits of our acquisitions or any other futureacquisition or the acquisition may be viewed negatively by customers, financial markets or investors.

Any acquisition has numerousrisks, including, but not limited to, the following:

We dependon our intellectual property and may face intellectual property infringement claims that could be time-consuming and costly to defendand could result in the loss of significant rights.

From time to time, we andour customers, or the third parties with whom we work may receive letters, including letters from other third parties, and may becomesubject to lawsuits with such third parties alleging infringement of their patents. Additionally, we are required by contract to indemnifysome customers and third-party intellectual property providers for certain costs and damages of patent infringement in circumstances whereour products are a factor creating the customer’s or these third-party providers’ infringement liability. This practice maysubject us to significant indemnification claims by customers and third-party providers. We cannot assure investors that indemnificationclaims will not be made or that these claims will not harm our business, operating results or financial condition. Intellectual propertylitigation is very expensive and time-consuming and could divert management’s attention from our business and could have a materialadverse effect on our business, operating results or financial condition. If there is a successful claim of infringement against us, ourcustomers or our third-party intellectual property providers, we may be required to pay substantial damages to the party claiming infringement,stop selling products or using technology that contains the allegedly infringing intellectual property, or enter into royalty or licenseagreements that may not be available on acceptable terms, if at all. Parties making infringement claims may also be able to bring an actionbefore the International Trade Commission that could result in an order stopping the importation into the United States of our solar products.Any of these judgments could materially damage our business. We may have to develop non-infringing technology, and our failure in doingso or in obtaining licenses to the proprietary rights on a timely basis could have a material adverse effect on the business.

We may berequired to file claims against other parties for infringing its intellectual property that may be costly and may not be resolved in itsfavor.

To protect our intellectualproperty rights and to maintain competitive advantage, we have filed, and may continue to file, suits against parties we believe infringeor misappropriate our intellectual property. Intellectual property litigation is expensive and time-consuming, could divert management’sattention from our business, and could have a material adverse effect on our business, operating results, or financial condition, andour enforcement efforts may not be successful. In addition, the validity of our patents may be challenged in such litigation. Our participationin intellectual property enforcement actions may negatively impact our financial results.

Developmentsin technology or improvements in distributed solar energy generation and related technologies or components may materially adversely affectdemand for our offerings.

Significant developmentsin technology, such as advances in distributed solar power generation, energy storage solutions such as batteries, energy storage managementsystems, the widespread use or adoption of fuel cells for residential or commercial properties or improvements in other forms of distributedor centralized power production may materially and adversely affect demand for our offerings and otherwise affect our business. Futuretechnological advancements may result in reduced prices to consumers or more efficient solar energy systems than those available today,either of which may result in current customer dissatisfaction. We may not be able to adopt these new technologies as quickly as its competitorsor on a cost-effective basis.

Additionally, recent technologicaladvancements may impact our business in ways not currently anticipated. Any failure by us to adopt or have access to new or enhanced technologiesor processes, or to react to changes in existing technologies, could result in product obsolescence or the loss of competitiveness ofand decreased consumer interest in its solar energy services, which could have a material adverse effect on its business, financial conditionand results of operations.

Our businessis subject to complex and evolving data protection laws. Many of these laws and regulations are subject to change and uncertain interpretationand could result in claims, increased cost of operations or otherwise harm its business.

Consumer personal privacyand data security have become significant issues and the subject of rapidly evolving regulation in the United States. Furthermore, federal,state and local government bodies or agencies have in the past adopted, and may in the future adopt, more laws and regulations affectingdata privacy. For example, the state of California enacted the California Consumer Privacy Act of 2018 (“CCPA”) andCalifornia voters recently approved the California Privacy Rights Act (“CPRA”). The CCPA creates individual privacyrights for consumers and places increased privacy and security obligations on entities handling the personal data of consumers or households.The CCPA went into effect in January 2020 and it requires covered companies to provide new disclosures to California consumers, providessuch consumers, business-to-business contacts and employees new ways to opt-out of certain sales of personal information, and allows fora new private right of action for data breaches. The CPRA modifies the CCPA and imposes additional data protection obligations on companiesdoing business in California, including additional consumer rights processes and opt outs for certain uses of sensitive data. The CCPAand the CPRA may significantly impact Complete Solaria’s business activities and require substantial compliance costs that adverselyaffect its business, operating results, prospects and financial condition. To date, we have not experienced substantial compliance costsin connection with fulfilling the requirements under the CCPA or CPRA. However, we cannot be certain that compliance costs will not increasein the future with respect to the CCPA and CPRA or any other recently passed consumer privacy regulation.

Outside the United States,an increasing number of laws, regulations, and industry standards may govern data privacy and security. For example, the European Union’sGeneral Data Protection Regulation (“EU GDPR”) and the United Kingdom’s GDPR (“UK GDPR”) imposestrict requirements for processing personal data. Under the EU GDPR, companies may face temporary or definitive bans on data processingand other corrective actions; fines of up to 20 million Euros or 4% of annual global revenue, whichever is greater; or private litigationrelated to processing of personal data brought by classes of data subjects or consumer protection organizations authorized at law to representtheir interests. Non-compliance with the UK GDPR may result in substantially similar adverse consequences to those in relation to theEU GDPR, including monetary penalties of up to £17.5 million or 4% of worldwide revenue, whichever is higher.

In addition, we may be unableto transfer personal data from Europe and other jurisdictions to the United States or other countries due to data localization requirementsor limitations on cross-border data flows. Europe and other jurisdictions have enacted laws requiring data to be localized or limitingthe transfer of personal data to other countries. In particular, the European Economic Area (“EEA”) and the UnitedKingdom have significantly restricted the transfer of personal data to the United States and other countries whose privacy laws it believesare not adequate. Other jurisdictions may adopt similarly stringent interpretations of their data localization and cross-border data transferlaws. Although there are currently various mechanisms that may be used to transfer personal data from the EEA and UK to the United Statesin compliance with law, such as the EEA and UK’s standard contractual clauses, these mechanisms are subject to legal challenges,and there is no assurance that Complete Solaria can satisfy or rely on these measures to lawfully transfer personal data to the UnitedStates. If there is no lawful manner for us to transfer personal data from the EEA, the UK, or other jurisdictions to the United States,or if the requirements for a legally-compliant transfer are too onerous, we could face significant adverse consequences, including theinterruption or degradation of its operations, the need to relocate part of or all of its business or data processing activities to otherjurisdictions at significant expense, increased exposure to regulatory actions, substantial fines and penalties, the inability to transferdata and work with partners, vendors and other third parties, and injunctions against its processing or transferring of personal datanecessary to operate its business. Some European regulators have ordered certain companies to suspend or permanently cease certain transfersout of Europe for allegedly violating the EU GDPR’s cross-border data transfer limitations.

Any inability to adequatelyaddress privacy and security concerns, even if unfounded, or comply with applicable privacy and data security laws, regulations and policies,could result in additional cost and liability to us damage our reputation, inhibit sales and adversely affect our business. Furthermore,the costs of compliance with, and other burdens imposed by, the laws, regulations and policies that are applicable to our business maylimit the use and adoption of, and reduce the overall demand for, its solutions. If we are not able to adjust to changing laws, regulationsand standards related to privacy or security, our business may be harmed.

Any unauthorizedaccess to or disclosure or theft of personal information we gather, store or use could harm our reputation and subject us to claims orlitigation.

We receive, store and usepersonal information of customers, including names, addresses, e-mail addresses, and other housing and energy use information. We alsostore information of dealers, including employee, financial and operational information. We rely on the availability of data collectedfrom customers and dealers in order to manage our business and market our offerings. We take certain steps in an effort to protect thesecurity, integrity and confidentiality of the personal information collected, stored or transmitted, but there is no guarantee inadvertentor unauthorized use or disclosure will not occur or third parties will not gain unauthorized access to this information despite our efforts.Although Complete Solaria takes precautions to provide for disaster recovery, the company’s ability to recover systems or data maybe expensive and may interfere with normal operations. Also, although we obtain assurances from such third parties they will use reasonablesafeguards to secure their systems, we may be adversely affected by unavailability of their systems or unauthorized use or disclosureor its data maintained in such systems. Because techniques used to obtain unauthorized access or sabotage systems change frequently andgenerally are not identified until they are launched against a target, we our suppliers or vendors and our dealers may be unable to anticipatethese techniques or to implement adequate preventative or mitigation measures.

Cyberattacks in particularare becoming more sophisticated and include, but are not limited to, malicious software, attempts to gain unauthorized access to dataand other electronic security breaches that could lead to disruptions in critical systems, disruption of customers’ operations,loss or damage to data delivery systems, unauthorized release of confidential or otherwise protected information, corruption of data andincreased costs to prevent, respond to or mitigate cybersecurity events. In addition, certain cyber incidents, such as advanced persistentthreats, may remain undetected for an extended period.

Unauthorized use, disclosureof or access to any personal information maintained by us or on the behalf of us, whether through breach of our systems, breach of thesystems of our suppliers, vendors or dealers by an unauthorized party or through employee or contractor error, theft or misuse or otherwise,could harm our business. If any such unauthorized use, disclosure of or access to such personal information were to occur, our operationscould be seriously disrupted and we could be subject to demands, claims and litigation by private parties and investigations, relatedactions and penalties by regulatory authorities.

In addition, we could incursignificant costs in notifying affected persons and entities and otherwise complying with the multitude of federal, state and local lawsand regulations relating to the unauthorized access to, use of or disclosure of personal information. Finally, any perceived or actualunauthorized access to, use of or disclosure of such information could harm our reputation, substantially impair our business, financialcondition and results of operations. While we currently maintain cybersecurity insurance, such insurance may not be sufficient to coveragainst claims, and we cannot be certain that cyber insurance will continue to be available on economically reasonable terms, or at all,or that any insurer will not deny coverage as to any future claim.

If we failto comply with laws and regulations relating to interactions by the company or its dealers with current or prospective residential customerscould result in negative publicity, claims, investigations and litigation and adversely affect financial performance.

Our business substantiallyfocuses on solar service agreements and transactions with residential customers. We offer leases, loans and other products and servicesto consumers by contractors in our dealer networks, who utilize sales people employed by or engaged as third-party service providers ofsuch contractors. We and our dealers must comply with numerous federal, state and local laws and regulations that govern matters relatingto interactions with residential consumers, including those pertaining to consumer protection, marketing and sales, privacy and data security,consumer financial and credit transactions, mortgages and refinancings, home improvement contracts, warranties and various means of customersolicitation, including under the laws described below in “As sales to residential customers have grown, we have increasinglybecome subject to substantial financing and consumer protection laws and regulations.” These laws and regulations are dynamicand subject to potentially differing interpretations and various federal, state and local legislative and regulatory bodies may initiateinvestigations, expand current laws or regulations, or enact new laws and regulations regarding these matters. Changes in these laws orregulations or their interpretation could dramatically affect how we and our dealers do business, acquire customers and manage and useinformation collected from and about current and prospective customers and the costs associated therewith. We and our dealers strive tocomply with all applicable laws and regulations relating to interactions with residential customers. It is possible, however, these requirementsmay be interpreted and applied in a manner inconsistent from one jurisdiction to another and may conflict with other rules or our practicesor the practices of our dealers.

Although we require dealersto meet consumer compliance requirements, we do not control dealers and their suppliers or their business practices. Accordingly, we cannotguarantee they follow ethical business practices such as fair wage practices and compliance with environmental, safety and other locallaws. A lack of demonstrated compliance could lead us to seek alternative dealers or suppliers, which could increase costs and have anegative effect on business and prospects for growth. Violation of labor or other laws by our dealers or suppliers or the divergence ofa dealer or supplier’s labor or other practices from those generally accepted as ethical in the United States or other markets inwhich the company does or intends to do business could also attract negative publicity and harm the business.

From time to time, we havebeen included in lawsuits brought by the consumer customers of certain contractors in our networks, citing claims based on the sales practicesof these contractors. While we have paid only minimal damages to date, we cannot be sure that a court of law would not determine thatwe are liable for the actions of the contractors in our networks or that a regulator or state attorney general’s office may holdus accountable for violations of consumer protection or other applicable laws by. Our risk mitigation processes may not be sufficientto mitigate financial harm associated with violations of applicable law by our contractors or ensure that any such contractor is ableto satisfy its indemnification obligations to us. Any significant judgment against us could expose it to broader liabilities, a need toadjust our distribution channels for products and services or otherwise change our business model and could adversely impact the business.

We may beunsuccessful in introducing new service and product offerings.

We intend to introduce newofferings of services and products to both new and existing customers in the future, including home automation products and additionalhome technology solutions. We may be unsuccessful in significantly broadening our customer base through the addition of these servicesand products within current markets or in new markets the company may enter. Additionally, we may not be successful in generating substantialrevenue from any additional services and products introduced in the future and may decline to initiate new product and service offerings.

Damage toour brand and reputation or change or loss of use of our brand could harm our business and results of operations.

We depend significantly onour reputation for high-quality products, excellent customer service and the brand name “Complete Solaria” to attract newcustomers and grow our business. If we fail to continue to deliver solar energy systems or energy storage systems within the planned timelines,if our offerings do not perform as anticipated or if we damage any of our customers’ properties or delays or cancels projects, ourbrand and reputation could be significantly impaired. Future technological improvements may allow the company to offer lower prices oroffer new technology to new customers; however, technical limitations in our current solar energy systems and energy storage systems mayprevent us from offering such lower prices or new technology to existing customers.

In addition, given the sheernumber of interactions our personnel or dealers operating on our behalf have with customers and potential customers, it is inevitablethat some customers’ and potential customers’ interactions with us or dealers operating on our behalf will be perceived asless than satisfactory. This has led to instances of customer complaints, some of which have affected our digital footprint on ratingwebsites and social media platforms. If we cannot manage hiring and training processes to avoid or minimize these issues to the extentpossible, our reputation may be harmed and our ability to attract new customers would suffer.

In addition, if we were tono longer use, lose the right to continue to use or if others use the “Complete Solaria” brand, we could lose recognitionin the marketplace among customers, suppliers and dealers, which could affect our business, financial condition, results of operationsand would require financial and other investment and management attention in new branding, which may not be as successful.

Our successdepends on the continuing contributions of key personnel.

We rely heavily on the servicesof our key executive officers and the loss of services of any principal member of the management team could adversely affect operations.There have been, and from time to time there may continue to changes in our management team resulting from the hiring and departure ofexecutives and key employees, or the transition of executives within the Company , which could disrupt our business.

We are investing significantresources in developing new members of management as we complete our restructuring and strategic transformation. We also anticipate thatover time we will need to hire a number of highly skilled technical, sales, marketing, administrative, and accounting personnel. The competitionfor qualified personnel is intense in this industry. We may not be successful in attracting and retaining sufficient numbers of qualifiedpersonnel to support its anticipated growth. We cannot guarantee that any employee will remain employed with us for any definite periodof time since all of employees, including key executive officers, serve at-will and may terminate their employment at any time for anyreason.

If we orour dealers or suppliers fail to hire and retain a sufficient number of employees and service providers in key functions, our growth andability to timely complete customer projects and successfully manage customer accounts would be constrained.

To support growth, we andour dealers need to hire, train, deploy, manage and retain a substantial number of skilled employees, engineers, installers, electriciansand sales and project finance specialists. Competition for qualified personnel in this industry has increased substantially, particularlyfor skilled personnel involved in the installation of solar energy systems. We and our dealers also compete with the homebuilding andconstruction industries for skilled labor. These industries are cyclical and when participants in these industries seek to hire additionalworkers, it puts upward pressure on us and our dealers’ labor costs. Companies with whom our dealers compete to hire installersmay offer compensation or incentive plans that certain installers may view as more favorable. As a result, our dealers may be unable toattract or retain qualified and skilled installation personnel. The further unionization of the industry’s labor force or the homebuildingand construction industries’ labor forces could also increase our dealers’ labor costs. Shortages of skilled labor could significantlydelay a project or otherwise increase dealers’ costs. Further, we need to continue to increase the training of the customer serviceteam to provide high-end account management and service to homeowners before, during and following the point of installation of its solarenergy systems. Identifying and recruiting qualified personnel and training them requires significant time, expense and attention. Itcan take several months before a new customer service team member is fully trained and productive at the standards established by us.If we are unable to hire, develop and retain talented customer service or other personnel, we may not be able to grow our business.

Our operatingresults and ability to grow may fluctuate from quarter to quarter and year to year, which could make future performance difficult to predictand could cause operating results for a particular period to fall below expectations.

Our quarterly and annualoperating results and its ability to grow are difficult to predict and may fluctuate significantly in the future. We have experiencedseasonal and quarterly fluctuations in the past and expect to experience such fluctuations in the future. In addition to the other risksdescribed in this “Risk Factors” section, the following factors could cause operating results to fluctuate:

For these or other reasons,the results of any prior quarterly or annual periods should not be relied upon as indications of our future performance.

Our abilityto obtain insurance on the terms of any available insurance coverage could be materially adversely affected by international, national,state or local events or company-specific events, as well as the financial condition of insurers.

Our insurance policies coverlegal and contractual liabilities arising out of bodily injury, personal injury or property damage to third parties and are subject topolicy limits.

However, such policies donot cover all potential losses and coverage is not always available in the insurance market on commercially reasonable terms. In addition,we may have disagreements with insurers on the amount of recoverable damages and the insurance proceeds received for any loss of, or anydamage to, any of our assets may be claimed by lenders under financing arrangements or otherwise may not be sufficient to restore theloss or damage without a negative impact on its results of operations. Furthermore, the receipt of insurance proceeds may be delayed,requiring us to use cash or incur financing costs in the interim. To the extent our experiences covered losses under its insurance policies,the limit of our coverage for potential losses may be decreased or the insurance rates it has to pay increased. Furthermore, the lossesinsured through commercial insurance are subject to the credit risk of those insurance companies. While we believe our commercial insuranceproviders are currently creditworthy, we cannot assure such insurance companies will remain so in the future.

We may not be able to maintainor obtain insurance of the type and amount desired at reasonable rates. The insurance coverage obtained may contain large deductiblesor fail to cover certain risks or all potential losses. In addition, our insurance policies are subject to annual review by insurers andmay not be renewed on similar or favorable terms, including coverage, deductibles or premiums, or at all. If a significant accident orevent occurs for which we are not fully insured or the company suffers losses due to one or more of its insurance carriers defaultingon their obligations or contesting their coverage obligations, it could have a material adverse effect on our business, financial conditionand results of operations.

We may besubject to breaches of our information technology systems, which could lead to disclosure of internal information, damage to our reputationor relationships with dealers, suppliers, and customers, and disrupt access to online services. Such breaches could subject us to significantreputational, financial, legal, and operational consequences.

Our business requires theuse and storage of confidential and proprietary information, intellectual property, commercial banking information, personal informationconcerning customers, employees, and business partners, and corporate information concerning internal processes and business functions.Malicious attacks to gain access to such information affects many companies across various industries, including ours.

Where appropriate, we useencryption and authentication technologies to secure the transmission and storage of data. These security measures may be compromisedas a result of third-party security breaches, employee error, malfeasance, faulty password management, or other irregularity or maliciouseffort, and result in persons obtaining unauthorized access to data.

We devote resources to networksecurity, data encryption, and other security measures to protect our systems and data, but these security measures cannot provide absolutesecurity. Because the techniques used to obtain unauthorized access, disable or degrade service, or sabotage systems change frequently,target end users through phishing and other malicious techniques, and/or may be difficult to detect for long periods of time, we may beunable to anticipate these techniques or implement adequate preventative measures. As a result, we may experience a breach of our systemsin the future that reduces our ability to protect sensitive data. In addition, hardware, software, or applications we develop or procuresfrom third parties may contain defects in design or manufacture or other problems that could unexpectedly compromise information security.Unauthorized parties may also attempt to gain access to our systems or facilities through fraud, trickery or other forms of deceivingteam members, contractors and temporary staff. If we experience, or are perceived to have experienced, a significant data security breach,fail to detect and appropriately respond to a significant data security breach, or fail to implement disclosure controls and proceduresthat provide for timely disclosure of data security breaches deemed material to our business, including corrections or updates to previousdisclosures, we could be exposed to a risk of loss, increased insurance costs, remediation and prospective prevention costs, damage toour reputation and brand, litigation and possible liability, or government enforcement actions, any of which could detrimentally affectour business, results of operations, and financial condition.

We may also share informationwith contractors and third-party providers to conduct business. While we generally review and typically request or require such contractorsand third-party providers to implement security measures, such as encryption and authentication technologies to secure the transmissionand storage of data, those third-party providers may experience a significant data security breach, which may also detrimentally affectour business, results of operations, and financial condition as discussed above. See also under this section, “We may be requiredto file claims against other parties for infringing its intellectual property that may be costly and may not be resolved in our favor.”We rely substantially upon trade secret laws and contractual restrictions to protect our proprietary rights, and, if these rights arenot sufficiently protected, our ability to compete and generate revenue could suffer.

As salesto residential customers have grown, we have increasingly become subject to consumer protection laws and regulations.

As we continue to seek toexpand our retail customer base, our activities with customers are subject to consumer protection laws that may not be applicable to otherbusinesses, such as federal truth-in-lending, consumer leasing, telephone and digital marketing, and equal credit opportunity laws andregulations, as well as state and local finance laws and regulations. Claims arising out of actual or alleged violations of law may beasserted against us by individuals or governmental entities and may expose the company to significant damages or other penalties, includingfines. In addition, our affiliations with third-party dealers may subject the company to alleged liability in connection with actual oralleged violations of law by such dealers, whether or not actually attributable to us, which may expose us to significant damages andpenalties, and we may incur substantial expenses in defending against legal actions related to third-party dealers, whether or not ultimatelyfound liable.

The competitiveenvironment in which we operate often requires the undertaking of customer obligations, which may turn out to be costlier than anticipatedand, in turn, materially and adversely affect our business, results of operations and financial condition.

We are often required, atthe request of our end customer, to undertake certain obligations such as:

Such customer obligationsinvolve complex accounting analyses and judgments regarding the timing of revenue and expense recognition, and in certain situations thesefactors may require us to defer revenue or profit recognition until projects are completed or until contingencies are resolved, whichcould adversely affect revenues and profits in a particular period.

We are subjectto risks associated with construction, cost overruns, delays, regulatory compliance and other contingencies, any of which could have amaterial adverse effect on its business and results of operations.

We are a licensed contractorin certain communities that we service and are ultimately responsible as the contracting party for every solar energy system installation.A significant portion of our business depends on obtaining and maintaining required licenses in various jurisdictions. All such licensesare subject to audit by the relevant government agency. Our failure to obtain or maintain required licenses could result in the terminationof certain of our contracts. For example, we hold a license with California’s Contractors State License Board (the “CSLB”)and that license is currently under probation with the CSLB. If we fail to comply with the CSLB’s law and regulations, it couldresult in termination of certain of our contracts, monetary penalties, extension of the license probation period or revocation of itslicense in California. In addition, we may be liable, either directly or through its solar partners, to homeowners for any damage we causesto them, their home, belongings or property during the installation of our systems. For example, we either directly or through its solarpartners, frequently penetrate homeowners’ roofs during the installation process and may incur liability for the failure to adequatelyweatherproof such penetrations following the completion of construction. In addition, because the solar energy systems we or our solarpartners deploy are high voltage energy systems, we may incur liability for any failure to comply with electrical standards and manufacturerrecommendations.

Further, we or our solarpartners may face construction delays or cost overruns, which may adversely affect our or our solar partners’ ability to ramp upthe volume of installation in accordance with our plans. Such delays or overruns may occur as a result of a variety of factors, such aslabor shortages, defects in materials and workmanship, adverse weather conditions, transportation constraints, construction change orders,site changes, labor issues and other unforeseen difficulties, any of which could lead to increased cancellation rates, reputational harmand other adverse effects.

In addition, the installationof solar energy systems, energy-storage systems and other energy-related products requiring building modifications are subject to oversightand regulation in accordance with national, state and local laws and ordinances relating to building, fire and electrical codes, safety,environmental protection, utility interconnection and metering, and related matters. We also rely on certain employees to maintain professionallicenses in many of the jurisdictions in which we operate, and the failure to employ properly licensed personnel could adversely affectour licensing status in those jurisdictions. It is difficult and costly to track the requirements of every individual authority havingjurisdiction over our installations and to design solar energy systems to comply with these varying standards. Any new government regulationsor utility policies pertaining to our systems may result in significant additional expenses to us and our homeowners and, as a result,could cause a significant reduction in demand for solar service offerings.

While we have a variety ofstringent quality standards that the company applies in the selection of its solar partners, we do not control our suppliers and solarpartners or their business practices. Accordingly, we cannot guarantee that they follow our standards or ethical business practices, suchas fair wage practices and compliance with environmental, safety and other local laws. A lack of demonstrated compliance could lead usto seek alternative suppliers or contractors, which could increase costs and result in delayed delivery or installation of our products,product shortages or other disruptions of its operations. Violation of labor or other laws by our suppliers and solar partners or thedivergence of a supplier’s or solar partners’ labor or other practices from those generally accepted as ethical in the UnitedStates or other markets in which we do business could also attract negative publicity and harm our business, brand and reputation in themarket.

Our managementhas identified conditions that raise substantial doubt about our ability to continue as a going concern.

Since our inception, we haveincurred losses and negative cash flows from operations. We incurred net losses of $269.6 million and $29.5 million, during the fiscalyears ended December 31, 2023 and 2022, respectively, and had an accumulated deficit of $354.9 million and current debt of $61.9 millionas of December 31, 2023. We had cash and cash equivalents of $2.6 million as of December 31, 2023, which were held for working capitalexpenditures. These conditions raise substantial doubt about our ability to continue as a going concern. Our ability to continue as agoing concern requires that we obtain sufficient funding to meet our obligations and finance our operations.

Our management has concludedthat there is substantial doubt about our ability to continue as a going concern. If we are not able to secure adequate additional fundingwhen needed, we will need to reevaluate our operating plan and may be forced to make reductions in spending, extend payment terms withsuppliers, liquidate assets where possible, or suspend or curtail planned programs or cease operations entirely. These actions could materiallyimpact our business, results of operations and future prospects. There can be no assurance that in the event we require additional financing,such financing will be available on terms that are favorable, or at all. Failure to generate sufficient cash flows from operations, raiseadditional capital or reduce certain discretionary spending would have a material adverse effect on our ability to achieve our intendedbusiness objectives.

We expectthat we will need to raise additional funding to finance our operations. This additional financing may not be available on acceptableterms or at all. Failure to obtain this necessary capital when needed may force us to curtail planned programs or cease operations entirely.

Our operations have consumedsignificant amounts of cash since inception. We expect to incur significant operating expenses as we continue to grow our business. Webelieve that our operating losses and negative operating cash flows will continue into the foreseeable future.

We had cash and cash equivalentsof $1.8 million as of March 31, 2024. Our cash position raises substantial doubt regarding our ability to continue as a going concernfor 12 months following the issuance of the unaudited condensed consolidated financial statements. We will require substantial additionalcapital to continue operations. Such additional capital might not be available when we need it and our actual cash requirements mightbe greater than anticipated. We cannot be certain that additional capital will be available on attractive terms, if at all, when needed,which could be dilutive to stockholders, and our financial condition, results of operations, business and prospects could be materiallyand adversely affected.

We have identifieda material weakness in our internal controls over financial reporting. If we are unable to maintain effective internal controls over financialreporting and disclosure controls and procedures, the accuracy and timeliness of our financial and operating reporting may be adverselyaffected, and confidence in our operations and disclosures may be lost.

In connection with the preparationand audit of our financial statements for the years ended December 31, 2022 and 2021, and our consolidated financial statements for theyear ended December 31, 2023, our management identified a material weakness in our internal control over financial reporting. A materialweakness is a deficiency, or combination of deficiencies, in internal control over financial reporting such that there is a reasonablepossibility that a material misstatement of our annual or interim consolidated financial statements will not be prevented or detectedon a timely basis. The material weakness is as follows:

In connection with the preparationand audit of our consolidated financial statements for the year ended December 31, 2023, our management identified a material weaknessin our internal control over financial reporting. The material weakness is as follows:

Complete Solaria was notrequired to perform an evaluation of internal control over financial reporting as of December 31, 2021 and 2020 in accordance with theprovisions of the Sarbanes-Oxley Act, nor were we required to do so as of December 31, 2022. Had such an evaluation been performed, additionalcontrol deficiencies may have been identified by Complete Solar’s management, and those control deficiencies could have also representedone or more material weaknesses.

We have taken certain steps,such as recruiting additional personnel, in addition to utilizing third-party consultants and specialists, to supplement its internalresources, to enhance its internal control environment and plans to take additional steps to remediate the material weaknesses. Althoughwe plan to complete this remediation process as quickly as possible, we cannot at this time estimate how long it will take. We cannotassure you that the measures we have taken to date and may take in the future, will be sufficient to remediate the control deficienciesthat led to our material weakness in internal control over financial reporting or that it will prevent or avoid potential future materialweaknesses.

If we are not able to maintaineffective internal control over financial reporting and disclosure controls and procedures, or if material weaknesses are discovered infuture periods, a risk that is significantly increased in light of the complexity of our business, we may be unable to accurately andtimely report our financial position, results of operations, cash flows or key operating metrics, which could result in late filings ofthe annual and quarterly reports under the Exchange Act, restatements of financial statements or other corrective disclosures, an inabilityto access commercial lending markets, defaults under its secured revolving credit facility and other agreements, or other material adverseeffects on our business, reputation, results of operations, financial condition or liquidity.

Compliancewith occupational safety and health requirements and best practices can be costly, and noncompliance with such requirements may resultin potentially significant penalties, operational delays and adverse publicity.

The installation and ongoingoperations and maintenance of solar energy systems and energy storage systems requires individuals hired by us, our dealers or third-partycontractors, potentially including employees, to work at heights with complicated and potentially dangerous electrical systems. The evaluationand modification of buildings as part of the installation process requires these individuals to work in locations that may contain potentiallydangerous levels of asbestos, lead, mold or other materials known or believed to be hazardous to human health. There is substantial riskof serious injury or death if proper safety procedures are not followed. Our operations are subject to regulation under Occupational Safetyand Health Administration (“OSHA”) and the Department of Transporation (“DOT”) regulations and equivalentstate and local laws. Changes to OSHA or DOT requirements, or stricter interpretation or enforcement of existing laws or regulations,could result in increased costs. If we fail to comply with applicable OSHA or DOT regulations, even if no work-related serious injuryor death occurs, we may be subject to civil or criminal enforcement and be required to pay substantial penalties, incur significant capitalexpenditures or suspend or limit operations. Because individuals hired by us or on our behalf to perform installation and ongoing operationsand maintenance of the company’s solar energy systems and energy storage systems, including its dealers and third-party contractors,are compensated on a per project basis, they are incentivized to work more quickly than installers compensated on an hourly basis. Whilewe have not experienced a high level of injuries to date, this incentive structure may result in higher injury rates than others in theindustry and could accordingly expose the company to increased liability. Individuals hired by or on behalf of us may have workplace accidentsand receive citations from OSHA regulators for alleged safety violations, resulting in fines. Any such accidents, citations, violations,injuries or failure to comply with industry best practices may subject us to adverse publicity, damage its reputation and competitiveposition and adversely affect the business.

Our businesshas benefited from the declining cost of solar energy system components and business may be harmed to the extent the cost of such componentsstabilize or increase in the future.

Our business has benefitedfrom the declining cost of solar energy system components and to the extent such costs stabilize, decline at a slower rate or increase,our future growth rate may be negatively impacted. The declining cost of solar energy system components and the raw materials necessaryto manufacture them has been a key driver in the price of the solar energy systems we own, and the prices charged for electricity andcustomer adoption of solar energy. Solar energy system component and raw material prices may not continue to decline at the same rateas they have over the past several years or at all. In addition, growth in the solar industry and the resulting increase in demand forsolar energy system components and the raw materials necessary to manufacture them may also put upward pressure on prices. An increaseof solar energy system components and raw materials prices could slow growth and cause business and results of operations to suffer. Further,the cost of solar energy system components and raw materials has increased and could increase in the future due to tariff penalties, duties,the loss of or changes in economic governmental incentives or other factors.

Product liabilityclaims against us could result in adverse publicity and potentially significant monetary damages.

It is possible our solarenergy systems or energy storage systems could injure customers or other third parties or our solar energy systems or energy storage systemscould cause property damage as a result of product malfunctions, defects, improper installation, fire or other causes. Any product liabilityclaim we face could be expensive to defend and may divert management’s attention. The successful assertion of product liabilityclaims against us could result in potentially significant monetary damages, potential increases in insurance expenses, penalties or fines,subject the company to adverse publicity, damage our reputation and competitive position and adversely affect sales of solar energy systemsor energy storage systems. In addition, product liability claims, injuries, defects or other problems experienced by other companies inthe residential solar industry could lead to unfavorable market conditions to the industry as a whole and may have an adverse effect onour ability to expand its portfolio of solar service agreements and related solar energy systems and energy storage systems, thus affectingour business, financial condition and results of operations.

Our warrantycosts may exceed the warranty reserve.

We provide warranties thatcover parts performance and labor to purchasers of our solar modules. We maintain a warranty reserve on our financial statements, andour warranty claims may exceed the warranty reserve. Any significant warranty expenses could adversely affect our financial conditionand results of operations. Significant warranty problems could impair our reputation which could result in lower revenue and a lower grossmargin.

We are subjectto legal proceedings and regulatory inquiries and may be named in additional claims or legal proceedings or become involved in regulatoryinquiries, all of which are costly, distracting to our core business and could result in an unfavorable outcome or harm our business,financial condition, results of operations or the trading price for our securities.

We are involved in claims,legal proceedings that arise from normal business activities. In addition, from time to time, third parties may assert claims againstus. We evaluate all claims, lawsuits and investigations with respect to their potential merits, our potential defenses and counter claims,settlement or litigation potential and the expected effect on us. In the event that we are involved in significant disputes or are thesubject of a formal action by a regulatory agency, we could be exposed to costly and time-consuming legal proceedings that could resultin any number of outcomes. Although outcomes of such actions vary, any claims, proceedings or regulatory actions initiated by or againstus whether successful or not, could result in expensive costs of defense, costly damage awards, injunctive relief, increased costs ofbusiness, fines or orders to change certain business practices, significant dedication of management time, diversion of significant operationalresources or some other harm to the business. In any of these cases, our business, financial condition or results of operations couldbe negatively impacted.

We make a provision for aliability relating to legal matters when it is both probable that a liability has been incurred and the amount of the loss can be reasonablyestimated. These provisions are reviewed at least quarterly and adjusted to reflect the impacts of negotiations, estimated settlements,legal rulings, advice of legal counsel and other information and events pertaining to a particular matter. In our opinion, resolutionof all current matters is not expected to have a material adverse impact on our business, financial condition or results of operations.However, depending on the nature and timing of any such controversy, an unfavorable resolution of a matter could materially affect ourfuture business, financial condition or results of operations, or all of the foregoing, in a particular quarter.

The requirementsof being a public company may strain our resources, divert management’s attention and affect our ability to attract and retain qualifieddirectors and officers.

We will face increased legal,accounting, administrative and other costs and expenses as a public company that we did not incur as a private company. The Sarbanes-OxleyAct, including the requirements of Section 404, as well as rules and regulations subsequently implemented by the SEC, the Dodd-Frank WallStreet Reform and Consumer Protection Act of 2010 and the rules and regulations promulgated and to be promulgated thereunder, the PCAOBand the securities exchanges, impose additional reporting and other obligations on public companies. Compliance with public company requirementswill increase costs and make certain activities more time-consuming. A number of those requirements will require us to carry out activitieswe had not done previously. For example, we created new board committees and adopted new internal controls and disclosure controls andprocedures. In addition, expenses associated with SEC reporting requirements will be incurred. Furthermore, if any issues in complyingwith those requirements are identified (for example, if the auditors identify a material weakness or significant deficiency in the internalcontrol over financial reporting), we could incur additional costs rectifying those issues, and the existence of those issues could adverselyaffect our reputation or investor perceptions of it. It may also be more expensive to obtain director and officer liability insurance.Risks associated with our status as a public company may make it more difficult to attract and retain qualified persons to serve on ourboard of directors or as executive officers. The additional reporting and other obligations imposed by these rules and regulations willincrease legal and financial compliance costs and the costs of related legal, accounting and administrative activities. These increasedcosts will require us to divert a significant amount of money that could otherwise be used to expand the business and achieve strategicobjectives. Advocacy efforts by stockholders and third parties may also prompt additional changes in governance and reporting requirements,which could further increase costs.

Our abilityto use net operating loss carryforwards and certain other tax attributes may be limited.

We have incurred substantiallosses during our history and do not expect to become profitable in the near future and may never achieve profitability. Under currentU.S. federal income tax law, unused losses for the tax year ended December 31, 2017 and prior tax years will carry forward to offset futuretaxable income, if any, until such unused losses expire, and unused federal losses generated after December 31, 2017 will not expire andmay be carried forward indefinitely but will be only deductible to the extent of 80% of current year taxable income in any given year.Many states have similar laws.

In addition, both currentand future unused net operating loss (“NOL”) carryforwards and other tax attributes may be subject to limitation underSections 382 and 383 of the Internal Revenue Code of 1986, as amended (the “Code”), if a corporation undergoes an “ownershipchange,” generally defined as a greater than 50 percentage point change (by value) in equity ownership by certain stockholders overa three-year period. The Business Combination may have resulted in an ownership change for us and, accordingly, our NOL carryforwardsand certain other tax attributes may be subject to limitations (or disallowance) on their use after the Business Combination. Our NOLcarryforwards may also be subject to limitation as a result of prior shifts in equity ownership. Additional ownership changes in the futurecould result in additional limitations on our NOL carryforwards. Consequently, even if we achieve profitability, we may not be able toutilize a material portion of our NOL carryforwards and other tax attributes, which could have a material adverse effect on cash flowand results of operations.

The tradingprice of our common stock may be volatile, and you could lose all or part of your investment.

Fluctuations in the priceof our securities could contribute to the loss of all or part of your investment. Prior to the Business Combination, there was no publicmarket for Solaria’s stock and trading in the shares of our common stock (prior to consummation of the Business Combination, “FACTCommon Stock”) was not active. Accordingly, the valuation ascribed to Solaria and FACT Common Stock in the Business Combinationmay not have been indicative of the price that will prevail in the trading market following the Business Combination. If an active marketfor our securities develops and continues, the trading price of our securities could be volatile and subject to wide fluctuations inresponse to various factors, some of which are beyond our control. Any of the factors listed below could have a material adverse effecton your investment in our securities and our securities may trade at prices significantly below the price you paid for them. In suchcircumstances, the trading price of our securities may not recover and may experience a further decline.

Factors affecting the tradingprice of our securities:

If securitiesor industry analysts do not publish or cease publishing research or reports about us, our business, or our market, or if they change theirrecommendations regarding our securities adversely, the price and trading volume of our securities could decline.

The trading market for oursecurities is influenced by the research and reports that industry or securities analysts may publish about us, our business, our market,or our competitors. If any of the analysts who currently cover us change their recommendation regarding our stock adversely, or providemore favorable relative recommendations about our competitors, the price of our securities would likely decline. If any analyst who currentlycover us were to cease coverage of us or fail to regularly publish reports on us, we could lose visibility in the financial markets, whichcould cause our stock price or trading volume to decline. If we obtain additional coverage and any new analyst issues, an adverse or misleadingopinion regarding us, our business model, our intellectual property or our stock performance, or if our operating results fail to meetthe expectations of analysts, our stock price could decline.

A marketfor our securities may not continue, which would adversely affect the liquidity and price of our securities.

The price of our securitiesmay fluctuate significantly due to general market and economic conditions and an active trading market for our securities may not be sustained.In addition, the price of our securities can vary due to general economic conditions and forecasts, our general business condition andthe release of our financial reports. If our securities are not listed on, or become delisted from Nasdaq for any reason, and are quotedon the over-the-counter (“OTC”) Bulletin Board, an inter-dealer automated quotation system for equity securities thatis not a national securities exchange, the liquidity and price of our securities may be more limited than if we were quoted or listedon Nasdaq or another national securities exchange. You may be unable to sell your securities unless a market can be established or sustained.

If we failto meet all applicable requirements of Nasdaq and Nasdaq determines to delist our common stock, the delisting could adversely affect themarket liquidity of our common stock and the market price of our common stock could decrease.

On April 16, 2024, we receivedtwo written notices from Nasdaq, notifying us that (i) because the closing bid price for our common stock was below $1.00 per share forat least 30 consecutive business days, we did not meet the $1.00 per share Minimum Bid Price Requirement (“Minimum Bid PriceRequirement”) and (ii) we are not in compliance with the requirement to maintain a minimum “Market Value of Listed Securities”(“MVLS”) of $50,000,000 for continued listing on The Nasdaq Global Market, as set forth in Nasdaq Listing Rule 5450(b)(2)(A). 

The notices have no immediateimpact on the continued listing or trading of our common stock on The Nasdaq Global Market, which will continue to be listed and tradedon The Nasdaq Global Market, subject to our compliance with the other continued listing requirements.

On June 3, 2024, we werenotified that we regained compliance with the Minimum Bid Price Requirement. To regain compliance with the MVLS Requirement, our MVLSmust close at $50,000,000 or more for a minimum of ten consecutive business days prior to the end of the compliance period.

If we are unable to satisfythe Nasdaq criteria for continued listing, our common stock would be subject to delisting. A delisting of our common stock could negativelyimpact us by, among other things, reducing the liquidity and market price of our common stock; reducing the number of investors willingto hold or acquire our common stock, which could negatively impact our ability to raise equity financing; decreasing the amount of newsand analyst coverage of us; and limiting our ability to issue additional securities or obtain additional financing in the future. In addition,delisting from Nasdaq may negatively impact our reputation and, consequently, our business.

There can be no assurancethat we will maintain compliance with the requirements for listing our common stock on Nasdaq. If we are unable to satisfy the Nasdaqcriteria for continued listing, our common stock would be subject to delisting.

Sales ofa substantial number of our common stock in the public market by our shareholders could cause the price of our common stock to decline.

Sales of a substantial numberof shares of our common stock in the public market could occur at any time. If our stockholders sell, or the market perceives that ourstockholders intend to sell, substantial amounts of the our common stock in the public market, the market price of our common stock coulddecline.

Provisionsin our Certificate of Incorporation and Bylaws and provisions of the Delaware General Corporate Law (“DGCL”) may delay orprevent an acquisition by a third party that could otherwise be in the interests of shareholders.

Our Certificate of Incorporationand Bylaws contain several provisions that may make it more difficult or expensive for a third party to acquire control of us withoutthe approval of the board. These provisions, which may delay, prevent or deter a merger, acquisition, tender offer, proxy contest, orother transaction that stockholders may consider favorable, include the following:

These provisions of our Certificateof Incorporation and Proposed Bylaws could discourage potential takeover attempts and reduce the price that investors might be willingto pay for the shares of our common stock in the future, which could reduce the market price of our common stock.

The provisionof our Certificate of Incorporation requiring exclusive venue in the Court of Chancery in the State of Delaware and the federal districtcourts of the United States for certain types of lawsuits may have the effect of discouraging lawsuits against directors and officers.

Our Certificate of Incorporationprovides that, unless otherwise consented to by us in writing, the Court of Chancery of the State of Delaware (or, if the Court of Chancerydoes not have jurisdiction, another State court in Delaware or the federal district court for the District of Delaware) will, to the fullestextent permitted by law, be the sole and exclusive forum for the following types of actions or proceedings:

Our Certificate of Incorporationwill further provide that, unless otherwise consented to by us in writing to the selection of an alternative forum, the federal districtcourts of the United States will, to the fullest extent permitted by law, be the sole and exclusive forum for the resolution of any complaintagainst any person in connection with any offering of our securities, asserting a cause of action arising under the Securities Act. Anyperson or entity purchasing or otherwise acquiring any interest in our securities will be deemed to have notice of and consented to thisprovision.

Although our Certificateof Incorporation contains the choice of forum provisions described above, it is possible that a court could rule that such provisionsare inapplicable for a particular claim or action or that such provisions are unenforceable. For example, under the Securities Act, federalcourts have concurrent jurisdiction over all suits brought to enforce any duty or liability created by the Securities Act, and investorscannot waive compliance with the federal securities laws and the rules and regulations thereunder. In addition, Section 27 of the ExchangeAct creates exclusive federal jurisdiction over all suits brought to enforce any duty or liability created by the Exchange Act or therules and regulations thereunder, and, therefore, the exclusive forum provisions described above do not apply to any actions brought underthe Exchange Act.

Although we believe theseprovisions will benefit us by limiting costly and time-consuming litigation in multiple forums and by providing increased consistencyin the application of applicable law, these exclusive forum provisions may limit the ability of our shareholders to bring a claim in ajudicial forum that such shareholders find favorable for disputes with us or our directors, officers or employees, which may discouragesuch lawsuits against us and our directors, officers and other employees.

The sharesof common stock being offered in this prospectus represent a substantial percentage of our outstanding common stock, and the sales ofsuch shares, or the perception that these sales could occur, could cause the market price of our common stock to decline significantly.

This prospectus relates to the offer and sale from time to time bythe Selling Securityholder named in this prospectus or its permitted transferees of up to 30,450,000 shares of common stock that we maysell to White Lion pursuant to the White Lion Purchase Agreement from time to time. We will not receive any proceeds from the sale ofshares of common stock by the Selling Securityholder pursuant to this prospectus.

The sale of shares of our common stock by the Selling Securityholder,or the perception that these sales could occur, could depress the market price of our common stock. The Selling Securityholder may stillhave an incentive to sell our common stock because it may still experience a positive rate of return on the securities it purchased dueto the differences in the purchase prices it paid for our common stock and the public trading price of our common stock. While the SellingSecurityholder may, on average, experience a positive rate of return based on the current market price of the common stock it purchased,public securityholders may not experience a similar rate of return on the common stock they purchased due to differences in the purchaseprices and the current market price. While Selling Securityholder may, on average, experience a positive rate of return based on the currentmarket price, public stockholders may not experience a similar rate of return on the common stock they purchased if there is such a declinein price and due to differences in the purchase prices and the current market price. The sale of the common stock by the Selling Securityholderbeing offered pursuant to this prospectus, or the perception that these sales could occur, could result in a significant decline in thepublic trading price of our common stock.

We may berequired to repurchase up to 5,618,488 shares of common stock from the investors with whom we entered into Forward Purchase Agreementsin connection with the closing of the Business Combination, which would reduce the amount of cash available to us to fund our growth plan.

On and around July 13, 2023,FACT entered into separate Forward Purchase Agreements (the “Forward Purchase Agreements”) with eachof (i) Meteora Special Opportunity Fund I, LP (“MSOF”), Meteora Capital Partners, LP (“MCP”)and Meteora Select Trading Opportunities Master, LP (“MSTO”) (with MSOF, MCP, and MSTO collectively as “Meteora”);(ii) Polar Multi-Strategy Master Fund (“Polar”), and (iii) Diametric True Alpha Market Neutral Master Fund,LP, Diametric True Alpha Enhanced Market Neutral Master Fund, LP, and Pinebridge Partners Master Fund, LP (collectively, “Sandia”,and each of Meteora, Polar, and Sandia, individually, an “FPA Investors”, and together, the “FPA Investors”),pursuant to which FACT (now Complete Solaria following the Closing) agreed to purchase in the aggregate, on the date that is 24 monthsafter the Closing Date (the “Maturity Date”), up to 5,618,488 shares of common stock then held by the FPA Investors(subject to certain conditions and purchase limits set forth in the Forward Purchase Agreements). Pursuant to the terms of the ForwardPurchase Agreements, each FPA Investor further agreed not to redeem any of the FACT Class A Ordinary Shares owned by it at such time.The per price at which the FPA Investors have the right to sell the shares to us on the Maturity Date will not be less than $5.00 pershare. On December 18, 2023, the Company and each FPA Investor entered into separate amendments to the Forward Purchase Agreements (the“First Amendments”). The First Amendments lower the reset floor price of each Forward Purchase Agreement from $5.00to $3.00 and allow the Company to raise up to $10,000,000 of equity from existing stockholders without triggering certain anti-dilutionprovisions contained in the Forward Purchase Agreements; provided, the insiders pay a price per share for their initial investment equalto the closing price per share as quoted on the Nasdaq on the day of purchase; provided, further, that any subsequent investments aremade at a price per share equal to the greater of (a) the closing price per share as quoted by Nasdaq on the day of the purchase or (b)the amount paid in connection with the initial investment. On May 7 and 8, 2024, respectively, the Company entered into separate amendmentsto the Forward Purchase Agreements (the collectively the “Second Amendments”) with Sandia (the “Sandia SecondAmendment”) and Polar (the “Polar Second Amendment”). The Second Amendments lower the reset price of eachForward Purchase Agreement from $3.00 to $1.00 per share and amend the VWAP Trigger Event provision to read as “After December 31,2024, an event that occurs if the VWAP Price, for any 20 trading days during a 30 consecutive trading day-period, is below $1.00 per Share.”The Sandia Second Amendment is not effective until the Company executes similar amendments with both Polar and Meteora. Subsequently,on June 14, 2024, the Company entered into an amendment to the Forward Purchase Agreement with Sandia (the “Sandia Third Amendment”).The Sandia Third Amendment sets the reset price of each Forward Purchase Agreement to $1.00 per share and amends the VWAP Trigger Eventprovision to read as “After December 31, 2024, an event that occurs if the VWAP Price, for any 20 trading days during a 30 consecutivetrading day-period, is below $1.00 per Share.” In the event either Polar or Meteora amend their Forward Purchase Agreementsto include different terms from the $1.00 reset price and VWAP trigger adjustment, or file a notice of a VWAP trigger event, as referenceherein, the Sandia Forward Purchase Agreement will be retroactively amended to reflect those improved terms and liquidity on the SandiaForward Purchase Agreement, including any of the 1,050,000 shares that were sold upon execution of this document. On July 17, 2024, the Company entered into the third amendment to the Forward Purchase Agreement with Polar (the“Polar Third Amendment”), pursuant to which the Company and Polar agreed that Section 2 (Most Favored Nation) of theForward Purchase Agreement is applicable to all 2,450,000 shares subject to the Forward Purchase Agreement.

If the FPA Investors holdsome or all of the 5,618,488 forward purchase agreement shares on the Maturity Date, and the per share trading price of our common stockis less than the per share price at which the FPA Investors have the right to sell the common stock to us on the Maturity Date, we wouldexpect that the FPA Investors will exercise this repurchase right with respect to such shares. In the event that we are required to repurchasethese forward purchase agreement shares, or in the event that the Forward Purchase Agreements are terminated the amount of cash arisingfrom the Business Combination that would ultimately be available to fund our liquidity and capital resource requirements would be reducedaccordingly, which would adversely affect our ability to fund our growth plan in the manner we had contemplated when entering into theForward Purchase Agreements.

Our Warrantsmay not be exercised at all or may be exercised on a cashless basis and we may not receive any cash proceeds from the exercise of theWarrants.

The exercise price of theWarrants may be higher than the prevailing market price of the underlying shares of common stock. The exercise price of the Warrants issubject to market conditions and may not be advantageous if the prevailing market price of the underlying shares of common stock is lowerthan the exercise price. The cash proceeds associated with the exercise of Warrants to purchase our common stock are contingent upon ourstock price. The value of our common stock will fluctuate and may not align with the exercise price of the warrants at any given time.If the Warrants are “out of the money,” meaning the exercise price is higher than the market price of our common stock, thereis a high likelihood that warrant holders may choose not to exercise their warrants. As a result, we may not receive any proceeds fromthe exercise of the Warrants.

Furthermore, with regardto the Private Warrants and Working Capital Warrants, it is possible that we may not receive cash upon their exercise, since these warrantsmay be exercised on a cashless basis. A cashless exercise allows warrant holders to convert the warrants into shares of our common stockwithout the need for a cash payment. Instead of paying cash upon exercise, the warrant holder would receive a reduced number of sharesbased on a predetermined formula. As a result, the number of shares issued through a cashless exercise will be lower than if the warrantswere exercised on a cash basis, which could impact the cash proceeds we receive from the exercise of such warrants.

The Public Warrants and theMerger Warrants may only be exercised for cash provided there is then an effective registration statement registering the shares of commonstock issuable upon the exercise of such warrants. If there is not a then-effective registration statement, then such warrants may beexercised on a “cashless basis,” pursuant to an available exemption from registration under the Securities Act.

Conversionof the July 2024 Notes will dilute ownership interest of existing shareholders, including holders who had previously converted their notes,or may otherwise depress the market price of our common stock.

On July 1, 2024, we enteredinto Note Purchase Agreements and an Exchange Agreement (together the “July 2024 Purchase Agreements”), pursuant towhich we issued to certain accredited investors and qualified institutional buyers approximately $50.0 million in aggregate principalamount in convertible promissory notes (the “July 2024 Notes”). The conversion of some or all of the July 2024 Noteswill dilute the ownership interests of existing shareholders. As of July 9, 2024, the July 2024 Notes had an aggregate outstanding balanceof approximately $50.0 million. Any sales in the public market of the shares of our common stock issuable upon such conversion could adverselyaffect prevailing market prices of our common stock. In addition, the existence of the notes may encourage short selling by market participantsbecause the conversion of the notes could be used to satisfy short positions, or anticipated conversion of the notes into shares of ourcommon stock could depress the market price of our common stock.

Future sales (including potential sales of securities to White Lionpursuant to the White Lion Purchase Agreement), or the perception of future sales, by us or our stockholders in the public market couldcause the market price for the Common Stock to decline.

The sale of shares ofour Common Stock in the public market, or the perception that such sales could occur, could harm the prevailing market price ofshares of our Common Stock. These sales, or the possibility that these sales may occur, also might make it more difficult for the usto sell equity securities in the future at a time and at a price that it deems appropriate. In the future, we may issue oursecurities to raise capital or in connection with investments or acquisitions. For example, we entered into the White Lion PurchaseAgreement with White Lion during July 2024, pursuant to which we may issue up to $30.0 million of shares of Common Stock.Additionally, we entered into the July 2024 Purchase Agreements for approximately $50.0 million of gross proceeds. The amount ofshares of Common Stock issued or issuable upon exercise or conversion of securities issued in connection with a capital raise or aninvestment or acquisition could constitute a material portion of the then-outstanding shares of our Common Stock. Any issuance ofadditional securities in connection with capital raising activities, investments or acquisitions may result in additional dilutionto our stockholders.

Additional Risks Related to this Offering

It is not possibleto predict the actual number of shares we will sell under the White Lion Purchase Agreement to the Selling Securityholder, or the actualgross proceeds resulting from those sales.

Subject to certain limitationsin the White Lion Purchase Agreement and compliance with applicable law, we have the discretion to deliver notices to the Selling Securityholderat any time throughout the White Lion Commitment Period. The number of shares ultimately offered for sale to the Selling Securityholderunder this prospectus is dependent upon the number of shares we elect to sell to the Selling Securityholder under the White Lion PurchaseAgreement. The actual number of shares of common stock that are sold to the Selling Securityholder may depend based on a number of factors,including the market price of our common stock during the sales period. Actual gross proceeds may be less than $30.0 million, which mayimpact our future liquidity. Because the price per share of each share sold to the Selling Securityholder will fluctuate during the salesperiod, it is not currently possible to predict the number of shares that will be sold or the actual gross proceeds to be raised in connectionwith those sales, if any.

Investors who buy sharesin this offering at different times will likely pay different prices.

Investors who purchase sharesof common stock in this offering at different times will likely pay different prices, and so may experience different levels of dilutionand different outcomes in their investment results. In connection with the White Lion Purchase Agreement, we will have discretion, subjectto market demand, to vary the timing, prices, and numbers of shares of common stock sold to White Lion. Similarly, White Lion may sellsuch shares at different times and at different prices. Investors may experience a decline in the value of the shares they purchase fromthe Selling Securityholder in this offering as a result of sales made by us in future transactions to White Lion at prices lower thanthe prices they paid.

The issuance of commonstock to the Selling Securityholder may cause substantial dilution to our existing shareholders, and the sale of such shares acquiredby the Selling Securityholder could cause the price of our common stock to decline.

We are registering for resaleby the Selling Securityholder up to 30,450,000 shares of common stock. After the Selling Securityholder has acquired shares under theWhite Lion Purchase Agreement, it may sell all, some or none of those shares. Sales to the Selling Securityholder by us pursuant to theWhite Lion Purchase Agreement may result in substantial dilution to the interests of other holders of our common stock.

The sale of a substantial number of shares to the Selling Securityholdercould make it more difficult for us to sell equity or equity-related securities in the future at a time and at a price that we might otherwisedesire. The number of shares of our common stock ultimately offered for resale by the Selling Securityholder under this prospectus isdependent upon the number of shares of common stock issued to the Selling Securityholder pursuant to the White Lion Purchase Agreement.Depending on a variety of factors, including market liquidity of our common stock, the issuance of shares to the Selling Securityholdermay cause the trading price of our common stock to decline.

We have broad discretionin the use of the net proceeds we receive from the sale of shares to the Selling Securityholder and may not use them effectively.

Our management will havebroad discretion in the application of the proceeds we receive from the Selling Securityholder, if any, including for the purposes describein “Use of Proceeds”, and you will not have the opportunity as part of your investment decision to assess whether ourmanagement is using the proceeds appropriately. Because of the number and variability of factors that will determine our use of our proceedsfrom the Selling Securityholder under the White Lion Purchase Agreement, their ultimate use may vary substantially from their currentlyintended use. The failure by our management to apply these funds effectively could result in financial losses that could have a materialadverse effect on our business and cause the price of our common stock to decline. Pending their use, we may invest the proceeds fromthe Selling Securityholder in short-term, investment grade, interest-bearing securities. These investments may not yield a favorable returnto our shareholders.

THEWHITE LION Transaction

On July 16, 2024, we entered into the original White Lion PurchaseAgreement with White Lion, which we and White Lion amended on July 24, 2024. We also entered into a Registration Rights Agreement withWhite Lion on July 16, 2024 (the “RRA”). Pursuant to the White Lion Purchase Agreement, as amended, the Company hasthe right, but not the obligation, to require White Lion to purchase, from time to time, up to $30.0 million in aggregate gross purchaseprice of newly issued shares of our common stock, subject to certain limitations and conditions set forth in the White Lion Purchase Agreement.Subject to the satisfaction of certain customary conditions, the Company’s right to sell shares to White Lion  commenced onthe date of the execution of White Lion Purchase Agreement and extends until the earlier of (i) White Lion having purchased shares ofcommon stock equal to $30.0 million and (ii) 18 months from the date of execution of the White Lion Purchase Agreement (the “WhiteLion Commitment Period”).

During the White Lion Commitment Period, subject to the terms and conditionsof the White Lion Purchase Agreement, the Company may notify White Lion when the Company exercises its right to sell shares of itscommon stock. The Company may deliver a Fixed Purchase Notice (as such term is defined in the White Lion Purchase Agreement), where theCompany can require White Lion to purchase up to a number of shares of common stock equal to the lesser of (i) $150,000 or (ii) 100% ofAverage Daily Trading Volume (as such term is defined in the White Lion Purchase Agreement). The Company may also deliver a Rapid PurchaseNotice (as such term is defined in the White Lion Purchase Agreement), where the Company may require White Lion to purchase up to a numberof shares of common stock equal to the lesser of (i) 100% of the Average Daily Trading Volume and (ii) $2,000,000 divided by the highestclosing price of the common stock over the most recent five business days immediately prior to the receipt of the notice. White Lion maywaive such limits under any notice at its discretion and purchase additional shares.

Theprice to be paid by White Lion for any shares that the Company requires White Lion to purchase will depend on the type of purchase noticethat the Company delivers. For shares being issued pursuant to Fixed Purchase Notice, the purchase price per share will be equal to 90%of the lowest VWAP (as defined in the White Lion Purchase Agreement) of the common stock that occurs during the five consecutive businessdays prior to the purchase notice. For shares being issued pursuant to a Rapid Purchase Notice, the purchase price per share will be equalto the average of the three lowest traded prices on the date that the notice is delivered.

Theaggregate number of shares of common stock that we can sell to White Lion under the White Lion Purchase Agreement (including the CommitmentShares (as defined below)) may in no case exceed 19.99% of the shares of common stock outstanding immediately prior to the execution ofthe Purchase Agreement (the “Exchange Cap”), unless stockholder approval is obtained to issue purchase sharesabove the Exchange Cap, in which case the Exchange Cap will no longer apply. No purchase notice shall result in White Lion beneficiallyowning (as calculated pursuant to Section 13(d) of the Securities Exchange Act of 1934, as amended, and Rule 13d-3 thereunder) more than9.99% of the number of shares of the common stock outstanding immediately prior to the issuance of shares of common stock issuable pursuantto a purchase notice.

The Company may deliver purchasenotices under the White Lion Purchase Agreement, subject to market conditions, and in light of our capital needs, from time to time andunder the limitations contained in the White Lion Purchase Agreement. Any proceeds that the Company receives under the White Lion PurchaseAgreement are expected to be used for working capital and general corporate purposes, as further summarized in “Use of Proceeds”.

The Company and White Lionwill have the right to terminate the White Lion Purchase Agreement in the event of a material breach by the other party and notice beingsent by the non-breaching party to the breaching party. The White Lion Purchase Agreement also automatically terminates upon the earlierof (i) the end of the White Lion Commitment Period, (ii) the date that the Company commences a voluntary bankruptcy proceeding, a custodianis appointed for the Company or for all or substantially all of its property or the Company makes a general assignment for the benefitof its creditors, and (iii) immediately upon the delisting of the common stock from The Nasdaq Global Market.

In consideration for thecommitments of White Lion, as described above, the Company has agreed that it will issue to White Lion shares of common stock (“CommitmentShares”) in an amount equal to (i) $450,000 divided by (ii) the closing price of the common stock on the earlier of (x) thebusiness day prior to the effectiveness of the registration statement of which this prospectus is a part or (ii) the business day priorto the date White Lion delivers a written request to the Company for the Commitment Shares. The Commitment Shares will be fully earnedby White Lion regardless of termination of the Purchase Agreement.

Concurrentlywith the White Lion Purchase Agreement, the Company entered into the RRA with White Lion. The Purchase Agreement and the RRA contain customaryrepresentations, warranties, conditions and indemnification obligations of the parties. The representations, warranties and covenantscontained in such agreements were made only for purposes of such agreements and as of specific dates, were solely for the benefit of theparties to such agreements and may be subject to limitations agreed upon by the contracting parties.

Market and IndustryData

Information contained inthis prospectus concerning the market and the industries in which Complete Solaria competes, including its market position, general expectationsof market opportunities and market size, is based on information from various third-party sources, publicly available information, variousindustry publications, internal data and estimates, and assumptions made by Complete Solaria based on such sources. Internal data andestimates are based upon information obtained from trade and business organizations and other contacts in the markets in which CompleteSolaria operates and Complete Solaria management’s understanding of industry conditions. This information and any estimates providedherein involve numerous assumptions and limitations, and you are cautioned not to give undue weight to such information. Third-party sourcesgenerally state that the information contained in such sources has been obtained from sources believed to be reliable. Although we believethat such information is reliable, there can be no assurance as to the accuracy or completeness of such information. Industry and marketdata could be wrong because of the method by which sources obtained their data and because information cannot always be verified withcomplete certainty due to the limits on the availability and reliability of raw data, the voluntary nature of the data gathering processand other limitations and uncertainties. Although we are responsible for all of the disclosure contained in this prospectus and we believethe third-party market position, general expectations of market opportunity and market size data included in this prospectus are reliable,we have not independently verified any third-party information and each publication speaks as of its original publication date (and notas of the date of this prospectus). In addition, we do not know all of the assumptions regarding general economic conditions or growththat were used in preparing the forecasts from the sources relied upon or cited herein.

Use of Proceeds

All of the shares of common stock offered by theSelling Securityholder pursuant to this prospectus will be sold by the Selling Securityholder for its own account. We will not receiveany of the proceeds from the resale of the shares of common stock by the Selling Securityholder. However, we may receive up to $30,000,000in gross proceeds under the White Lion Purchase Agreement from sales of common stock that we may elect to make to the Selling Securityholderpursuant to the White Lion Purchase Agreement, if any, from time to time in our sole discretion, during the White Lion Commitment Period.However, we will not receive any proceeds from the issuance of the Commitment Shares.

The proceeds from the Selling Securityholder thatwe receive under the White Lion Purchase Agreement, if any, are currently expected to be used for general corporate purposes, includingworking capital. Accordingly, we retain broad discretion over the use of the net proceeds from the sale of our common stock under theWhite Lion Purchase Agreement. The precise amount and timing of the application of such proceeds will depend upon our liquidity needsand the availability and cost of other capital over which we have little or no control. As of the date hereof, we cannot specify withcertainty the particular uses for the net proceeds from the sales of shares of common stock, if any to White Lion under the White LionPurchase Agreement.

We will incur all costs associated with this prospectusand the registration statement of which it is a part.

All of the shares of common stock offered by the Selling Securityholderpursuant to this prospectus will be sold by the Selling Securityholder for its own account.

Determination ofOffering Price

We cannot currently determine the price or prices at which shares ofcommon stock may be sold by the Selling Securityholder under this prospectus.

Market Informationfor Securities and Dividend Policy

Market Information

Our common stock and PublicWarrants are currently listed on Nasdaq under the symbols “CSLR” and “CSLRW,” respectively. Prior to the consummationof the Business Combination, our common stock and our Public Warrants were listed on the NYSE under the symbols “FACT” and“FACT WS,” respectively. On July 16, 2024, there were 198holders of record of the common stock and 240 holders of recordof our Warrants. We currently do not intend to list the Private Warrants on any stock exchange or stock market.

Dividend Policy

We have never declared orpaid any dividends on shares of our common stock. We anticipate that we will retain all of our future earnings, if any, for use in theoperation and expansion of our business and do not anticipate paying cash dividends in the foreseeable future. Any decision to declareand pay dividends in the future will depend on, among other things, the consent of our lender(s), our results of operations, cash requirements,financial condition, contractual restrictions and other factors that our board of directors may deem relevant.

Management’sDiscussion and Analysis of Financial Condition and Results of Operations

You should read the following discussion andanalysis of our financial condition and results of operations together with the consolidated financial statements and the related notesappearing at the end of this prospectus. Some of the information contained in this discussion and analysis or set forth elsewhere in thisprospectus, including information with respect to our plans and strategy for our business and related financing includes forward-lookingstatements that involve risks, uncertainties and assumptions. You should read the “Special Note Regarding Forward-Looking Statements”and “Risk Factors” sections of this prospectus for a discussion of important factors that could cause actual results to differmaterially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.

Overview

Complete Solaria was formedin November 2022 through the merger of Complete Solar Holding Corporation, a Delaware corporation (“Complete Solar”),and The Solaria Corporation, a Delaware corporation (such entity, “Solaria,” and such transaction, the “BusinessCombination”). Founded in 2010, Complete Solar created a technology platform to offer clean energy products to homeowners byenabling a national network of sales partners and build partners. Our sales partners generate solar installation contracts with homeownerson our behalf. To facilitate this process, we provide the software tools, sales support and brand identity to its sales partners, makingthem competitive with national providers. This turnkey solution makes it easy for anyone to sell solar.

Effective January 1, 2023,we changed our fiscal quarters to four, thirteen-week periods within a standard calendar year. Each annual reporting period begins onJanuary 1 and ends on December 31.

There is substantial doubtabout our ability to continue as a going concern within one year after the date that the unaudited condensed consolidated financial statementsare issued. The accompanying unaudited condensed consolidated financial statements have been prepared assuming we will continue to operateas a going concern, which contemplates the realization of assets and settlement of liabilities in the normal course of business. Theydo not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amountsand classifications of liabilities that may result from uncertainty related to our ability to continue as a going concern.

Recent Developments

White Lion Purchase Agreement and RegistrationRights Agreement

On July 16, 2024, we entered into that certain Common Stock PurchaseAgreement, as amended by Amendment No. 1 dated July 24, 2024 (as amended, “White Lion Purchase Agreement”) with WhiteLion and a related Registration Rights Agreement. Pursuant to the White Lion Purchase Agreement, we have the right, but not the obligation,to require White Lion to purchase, from time to time, up to $30.0 million of newly issued shares of common stock, subject to certain limitationsand conditions set forth in the White Lion Purchase Agreement. See “The White Lion Transaction” for further informationrelating to the White Lion Purchase Agreement and the related RRA.

StrategicAcquisition of Core Energy

On July 15, 2024, CompleteSolaria acquired selected assets of Core Energy, a Logan, Utah solar engineering, procurement and construction firm, and hired its 37employees, including the Chief Executive Officer, Cole Farmer, an industry veteran who will run sales and marketing for Complete Solaria,Inc.

ExchangeAgreement

On July 1, 2024, the Company entered into an Exchange Agreement (the“Exchange Agreement”) with CRSEF Solis Holdings, L.L.C., a Delaware limited liability company (“Carlyle”),Kline Hill Partners Fund LP, a Delaware limited partnership (“Kline Fund”), Kline Hill Partners IV SPV LLC, a Delawarelimited liability company (“Kline Partners”) and Kline Hill Partners Opportunity IV SPV LLC, a Delaware limited liabilitycompany (“Kline Opportunity” and together with Kline Fund and Kline Partners, “Kline Hill”) providingfor, among other things: the cancellation of all indebtedness owed to Carlyle and Kline Hill by the Company; termination of all debt instrumentsby and between the Company and Carlyle and by and between Kline Hill; the satisfaction of all obligations owed to Carlyle and Kline Hillby the Company under the terminated debt instruments; the issuance of convertible notes to Carlyle and Kline Hill; and the issuance ofshares of common stock to Kline Hill pursuant to common stock purchase agreements.

2024Note Financing

On July 1, 2024, we enteredinto Note Purchase Agreements and the Exchange Agreement (the “July 2024 Purchase Agreement”), pursuant to which weissued to certain accredited investors and qualified institutional buyers approximately $50.0 million in aggregate principal amount inconvertible promissory notes (the “July 2024 Note”). The July 2024 Notes accrue at a rate of interest of 12.0% whichwill be payable semiannually in arrears on January 1 and July 1 of each year, beginning on July 1, 2025. The July 2024 Notes are convertibleat the option of the holders at any time prior to the payment of the payment of the principal amount of such convertible note in full.Upon conversion of any convertible note, the Company will satisfy its conversion obligation by delivering shares of common stock and payingcash in respect of any fractional shares. The conversion rate for the convertible notes is initially equal to 595.2381 shares of commonstock per $1,000 principal amount due under the convertible notes, which is equivalent to an initial conversion price of approximately$1.68 per share of Common Stock and represents a premium of approximately 50.0% above the last reported sale price of the Common Stockon the Nasdaq Global Market on June 28, 2024. The conversion rate shall be subject to adjustment from time to time pursuant to the termsof the convertible notes.

CommonStock Purchase Agreements

On July 1, 2024, we entered into separate common stock purchase agreements(the “Purchase Agreements”) with Kline Hill. Pursuant to the terms of the Purchase Agreements, Kline Hill purchasedan aggregate of 1,500,000 shares of Common Stock in consideration for the cancellation of indebtedness owed to Kline Hill. Kline Hillis a 5% holder of Complete Solaria’s capital stock.

Designated Board Observers

In addition, in consideration for the entry of Carlyle and Kline Hillinto the Exchange Agreement, on July 1, 2024, we entered into that certain Designated Board Observer Agreement with Carlyle Entity andKline Partners, pursuant to which Kline Partners and Carlyle each have the right to designate a person to attend certain meetings of theBoard in solely a non-voting, observer capacity. Each of Carlyle and Kline Hill is a 5% holder of Complete Solaria’s capital stock.

Ayna.AI LLCCommon Stock Warrant

On June 17, 2024, CompleteSolaria executed a Warrant to Purchase Common Stock (the “Ayna Warrant”), pursuant to which Ayna.AI LLC ( “Ayna”)is entitled to purchase 6,000,000 shares of Common Stock at the exercise price per share of $0.01, subject to the provisions and uponthe terms and conditions set forth in the Warrant. The issuance of this Warrant by Complete Solaria to Ayna is in satisfaction of thecompensation owed by Complete Solaria to Ayna for Complete Solaria under the terms of the Statement of Work, signed May 21, 2024 (andeffective as of March 12, 2024), as incorporated into the Master Services Agreement, dated March 12, 2024.

Siemens Final Order

As discussed in more detailin the section titled “Business—Legal Proceedings—Siemens”, in July 2021, Siemens GovernmentTechnologies, Inc. and Siemens Industry, Inc. (collectively, “Siemens”) filed a lawsuit against Solaria Corporationand SolarCA, LLC, which are wholly-owned subsidiaries of Complete Solaria, Inc. (collectively, the “Subsidiaries”),in Fairfax Circuit Court (the “Court”) in Fairfax, Virginia in the case captioned Siemens Government Technologies,Inc. and Siemens Industry Inc. v. Solaria Corporation and SOLARCA, LLC (Case No. CL-2021-10556).

On June 17, 2024, the Courtentered a final order which awards Siemens a total of $2,007,024.63 in attorneys’ fees and costs. The Subsidiaries intend to appealsuch judgment.

Amendments to ForwardPurchase Agreements

On May 7 and 8, 2024, respectively,we entered into the Sandia Second Amendment and the Polar Second Amendment to the Forward Purchase Agreements. The Second Amendments lowerthe reset price of each Forward Purchase Agreement from $3.00 to $1.00 per share and amend the VWAP Trigger Event provision to read as“After December 31, 2024, an event that occurs if the VWAP Price, for any 20 trading days during a 30 consecutive trading day-period,is below $1.00 per Share.” The Sandia Second Amendment is not effective until we execute similar amendments with both Polar andMeteora.

On June 14, 2024, we enteredinto an amendment to the Forward Purchase Agreement with Sandia (the “Sandia Third Amendment”). The Sandia Third Amendmentsets the reset price of each Forward Purchase Agreement to $1.00 per share and amends the VWAP Trigger Event provision to read as “AfterDecember 31, 2024, an event that occurs if the VWAP Price, for any 20 trading days during a 30 consecutive trading day-period, is below$1.00 per Share.” For more information, see “Liquidity and Capital Resources—Forward Purchase Agreements.”

SAFE Financings

On April 21, 2024, we entered into an amendment to our SAFEs with theRodgers Massey Freedom and Free Markets Charitable Trust to convert the invested amounts into shares of our common stock. The conversionshare price was $0.36, calculated as the product of (i) $0.45, the closing price of our common stock on April 19, 2024, multiplied by(ii) 80%. The SAFEs converted into an aggregate of 13,888,889 shares of our common stock. On May 13, 2024, we entered into a SAFE withthe Rodgers Massey Freedom and Free Markets Charitable Trust in connection with the Rodgers Group investment of $1,000,000. For more informationabout these transactions, see “Liquidity and Capital Resources—SAFE Agreements.”

ManagementChanges

On April 24, 2024, ChrisLundell, Chief Executive Officer, and member of the Board, stepped down as Chief Executive Officer, and the Board appointed Thurman J.Rodgers as Chief Executive Officer, effective as of April 24, 2024. Mr. Lundell continues to serve as a member of the Board.

Additionally, on April 24,2024, we promoted Brian Wuebbels from Chief Financial Officer to Chief Operations Officer, effective as of April 24, 2024. On June 30,2024, we entered into an employment extension agreement (the “Extension Agreement”) with Mr. Wuebbels, pursuantto which Mr. Wuebbels will resign his position as our Chief Operating Officer, effective August 16, 2024. Mr. Wuebbels’ currenthealth benefits will continue through August 31, 2024 and he will receive vesting of 208,115 options initially granted to Mr. Wuebbelsin April 2024.

OnJune 7, 2024, we entered into an executive employment agreement with Daniel Foley to serve as Chief Financial Officer, effective July1, 2024.

Growth Strategy and Outlook

Complete Solaria’sgrowth strategy contains the following elements:

The Business Combination

We entered into an Amendedand Restated Business Combination Agreement with Jupiter Merger Sub I Corp., a Delaware corporation and a wholly owned subsidiary of FreedomAcquisition I Corp. (“FACT”) (“First Merger Sub”), Jupiter Merger Sub II LLC, a Delaware limitedliability company and a wholly owned subsidiary of FACT (“Second Merger Sub”), and Solaria on October 3, 2022 (“Merger”).The Business Combination was consummated on July 18, 2023. Upon the terms and subject to the conditions of the Business Combination, (i)First Merger Sub merged with and into Complete Solaria with Complete Solaria surviving as a wholly-owned subsidiary of FACT (the “FirstMerger”), (ii) immediately thereafter and as part of the same overall transaction, Complete Solaria merged with and into SecondMerger Sub, with Second Merger Sub surviving as a wholly-owned subsidiary of FACT (the “Second Merger”), and FACT changedits name to “Complete Solaria, Inc.” and Second Merger Sub changed its name to “CS, LLC” and (iii) immediatelyafter the consummation of the Second Merger and as part of the same overall transaction, Solaria merged with and into a newly formed Delawarelimited liability company and wholly-owned subsidiary of FACT and changed its name to “The SolarCA LLC” (“Third MergerSub”), with Third Merger Sub surviving as a wholly-owned subsidiary of FACT (the “Additional Merger”, andtogether with the First Merger and the Second Merger, the “Mergers”).

The Mergers between CompleteSolaria and FACT has been accounted for as a reverse recapitalization. Under this method of accounting, FACT is treated as the acquiredcompany for financial statement reporting purposes. This determination was primarily based on us having a majority of the voting powerof the post-combination company, our senior management comprising substantially all of the senior management of the post-combination company,and our operations comprising the ongoing operations of the post-combination company. Accordingly, for accounting purposes, the Mergershave been treated as the equivalent of a capital transaction in which Complete Solaria is issuing stock for the net assets of FACT. Thenet assets of FACT have been stated at historical cost, with no goodwill or other intangible assets recorded.

Disposal Transaction

In October 2023, we completedthe sale of our solar panel business (“Disposal Transaction”) to Maxeon, Inc. (“Maxeon”), pursuantto the terms of an asset purchase agreement (“Disposal Agreement”). Under the terms of the Disposal Agreement, Maxeonagreed to acquire certain assets and employees of Complete Solaria, for an aggregate purchase price of approximately $11.0 million consistingof 1,100,000 shares of Maxeon ordinary shares. As of December 31, 2023, we had sold all the shares of Maxeon and recorded a loss of $4.2million. 

As part of the Disposal Transaction,we determined that the criteria were met for the “held for sale” and discontinued operations classifications as of the endof our third fiscal quarter in 2023 as the divestiture represented a strategic shift in our business. We recorded an impairment chargeof $147.5 million associated with the recording of the assets as held for sale during the year ended December 31, 2023.

Below we have discussed ourhistorical results of continuing operations which excludes product revenues and related metrics of our solar panel business, as all resultsof operations associated with the solar panel business have been presented as discontinued operations, unless otherwise noted.

Key Financial Definitions/Components of Resultsof Operations

Revenues

We generate revenue by providingcustomer solar solutions through a standardized platform to our residential solar providers and companies to facilitate the sale and installationof solar energy systems. Our contracts consist of two performance obligations; solar installation services and post-installation servicesthat are performed prior to inspection by the authority having jurisdiction. The majority of our service revenue is recognized at a pointin time upon the completion of the installation, and the remainder is recognized upon inspection. Service revenue is recognized net ofa reserve for the performance guarantee of solar output.

We enter into three typesof customer contracts for solar energy installations. The majority of our service revenue is recognized through contracts where the homeownerenters into a power purchase agreement with our distribution partner. We perform the solar energy installation services on behalf of ourdistribution partner, who owns the solar energy system upon installation. Additionally, we enter into a Solar Purchase and InstallationAgreement directly with homeowners, whereby the homeowner either pays cash or obtains financing through a third-party loan partner. Incash contracts with homeowners, we recognize service revenue based on the price we charge to the homeowner. We record service revenuein the amount received from the financing partner, net of any financing fees charged to the homeowner, which we consider to be a customerincentive. 

As part of our service revenue,we also enter into contracts to provide our software enhanced service offerings, including design and proposal services to customers thatinclude solar installers and solar sales organizations. We perform these leveraging our HelioQuoteTM platform and other software toolsto create computer aided drawings, structural letters, and electrical reviews for installers and proposals for installers. We charge afixed fee per service offering, which we recognize in the period the service is performed.

Operating Expenses

Cost of Revenues

Cost of revenues consistsprimarily of the cost of solar energy systems, installation and other subcontracting costs. Cost of revenues also includes associatedwarranty costs, shipping and handling, allocated overhead costs, depreciation, and amortization of internally developed software. 

Sales Commissions

Sales commissions are directand incremental costs of obtaining customer contracts. These costs are paid to third-party vendors who source residential customer contractsfor the sale of solar energy systems. 

Sales andMarketing

Sales and marketing expensesprimarily consist of personnel related costs, including salaries and employee benefits, stock-based compensation, and other promotionaland advertising expenses. We expense certain sales and marketing, including promotional expenses, as incurred. 

General andAdministrative

General and administrativeexpenses consist primarily of personnel and related expenses for our employees, in our finance, research, engineering, and administrativeteams including salaries, bonuses, payroll taxes, and stock-based compensation. It also consists of legal, consulting, and professionalfees, rent expenses pertaining to our offices, business insurance costs and other costs. We expect an increase in audit, tax, accounting,legal and other costs related to compliance with applicable securities and other regulations, as well as additional insurance, investorrelations, and other costs associated with being a public company. 

InterestExpense

Interest expense primarilyrelates to interest expense on the issuance of debt and convertible notes and the amortization of debt issuance costs.

Other Income(Expense), Net

Other income (expense), netconsists of changes in the fair value of our convertible notes, the impact of debt extinguishment, changes in the fair value of stockwarrant liabilities and forward purchase agreements and other costs.

Income TaxExpense

Income tax expense primarilyconsists of income taxes in certain foreign and state jurisdictions in which we conduct business.

Supply Chain Constraints and Risk

We rely on a small numberof suppliers of solar energy systems and other equipment. If any of our suppliers was unable or unwilling to provide us with contractedquantities in a timely manner at prices, quality levels and volumes acceptable to us, we would have very limited alternatives for supply,and we may not be able find suitable replacements for our customers, or at all. Such an event could materially adversely affect our business,prospects, financial condition and results of operations.

In addition, the global supplychain and our industry have experienced significant disruptions in recent periods. We have seen supply chain challenges and logisticsconstraints increase, including shortages of panels, inverters, batteries and associated component parts for inverters and solar energysystems available for purchase, which materially impacted our results of operations. In an effort to mitigate unpredictable lead times,we experienced a substantial build up in inventory on hand commencing in early 2022 in response to global supply chain constraints. Incertain cases, the global supply chain constraints have caused delays in critical equipment and inventory, longer lead times, and hasresulted in cost volatility. These shortages and delays can be attributed in part to the residual effects of the COVID-19 pandemic andresulting government action, as well as broader macroeconomic conditions, and have been exacerbated by the conflicts in Ukraine and Israel.While we believe that a majority of our suppliers have secured sufficient supply to permit them to continue delivery and installationsthrough the end of March 2025, if these shortages and delays persist, they could adversely affect the timing of when battery energy storagesystems can be delivered and installed, and when (or if) we can begin to generate revenue from those systems. If any of our suppliersof solar modules experienced disruptions in the supply of the modules’ component parts, for example semiconductor solar wafers orinverters, this may decrease production capabilities and restrict our inventory and sales. In addition, we have experienced and are experiencingvarying levels of volatility in costs of equipment and labor resulting in part from disruptions caused by general global economic conditions.While inflationary pressures have resulted in higher costs of products, in part due to an increase in the cost of the materials and wagerates, these additional costs have been offset by the related rise in electricity rates. 

We cannot predict the fulleffects the supply chain constraints will have on our business, cash flows, liquidity, financial condition and results of operations atthis time due to numerous uncertainties. Given the dynamic nature of these circumstances on our ongoing business, results of operationsand overall financial performance, the full impact of macroeconomic factors, including the conflicts in Ukraine and Israel, cannot bereasonably estimated at this time. In the event we are unable to mitigate the impact of delays or price volatility in solar energy systems,raw materials, and freight, it could materially adversely affect our business, prospects, financial condition and results of operations.For additional information on risk factors that could impact our results, please refer to “Risk Factors” located elsewherein this prospectus.

Critical Accounting Policies and Estimates

Our discussion and analysisof our financial condition and results of operations are based upon our financial statements, which have been prepared in accordance withgenerally accepted accounting principles in the United States (“GAAP”). GAAP requires us to make estimates and assumptionsthat affect the reported amounts of assets, liabilities, revenue, expenses and related disclosures. We base our estimates on historicalexperience and on various other assumptions that we believe to be reasonable under the circumstances. In many instances, we could havereasonably used different accounting estimates, and in other instances, changes in the accounting estimates are reasonably likely to occurfrom period-to-period. Actual results could differ significantly from our estimates. Our future financial statements will be affectedto the extent that our actual results materially differ from these estimates. For further information on all of our significant accountingpolicies, see Note 2 - Summary of Significant Accounting Policies, to our unaudited condensed consolidated financial statements includedelsewhere in this prospectus.

We believe that policiesassociated with our revenue recognition, product warranties, inventory excess and obsolescence and stock-based compensation have the greatestimpact on our unaudited condensed consolidated financial statements. Therefore, we consider these to be our critical accounting policiesand estimates. 

Revenue Recognition

We recognize revenue whencontrol of goods or services is transferred to customers, in an amount that reflects the consideration we expect to be entitled to inexchange for those services.

Revenue - Solar Energy System Installations

The majority of our revenueis generated from the installation of solar energy systems. We identify two performance obligations, which include installation servicesand post-installation services, and we recognize revenue when control transfers to the customer, upon the completion of the installationand upon the solar energy system passing inspection by the authority having jurisdiction, respectively. We apply judgment in allocatingthe transaction price between the installation and post-installation performance obligations, based on the estimated costs to performour services. Changes in such estimates could have a material impact on the timing of our revenue recognition. 

Our contracts with customersgenerally contain a performance guarantee of system output, and we will issue payments to customers if output falls below contractuallystated thresholds over the performance guarantee period, which is typically 10 years. We apply judgment in estimating the reduction inrevenue associated with the performance guarantee, which historically has not been material. However, due to the long-term nature of theguarantee, changes in future estimates could have a material impact on the estimate of our revenue reserve.

Revenue - Software Enhanced Services

We recognize revenue fromsoftware enhanced services, which include proposals generated from our HelioQuote^TM platform and design services performedusing internally developed and external software applications. We contract with solar installers to generate proposals, and we contractwith solar sales entities to perform design services for their potential customers. Under each type of customer contract, we generatea fixed number of proposals or designs for the customer in the month the services are contracted. Contracts with customers are enforceableon a month-to-month basis and we recognize revenue each month based on the volume of services performed. 

Product Warranties

We typically provide a 10-yearwarranty on our solar energy system installations, which provides assurance over the workmanship in performing the installation, includingroof leaks caused by our performance. For solar panel sales recognized prior to the Disposal Transaction, we provide a 30-year warrantythat the products will be free from defects in material and workmanship. We record a liability for estimated future warranty claims basedon historical trends and new installations. To the extent that warranty claim behavior differs from historical trends, we may experiencea material change in our warranty liability.

Inventory Excess and Obsolescence

Our inventory consists ofcompleted solar energy systems and related components, which we classify as finished costs. We record a reserve for inventory which isconsidered obsolete or in excess of anticipated demand based on a consideration of marketability and product life cycle stage, componentcost trends, demand forecasts, historical revenues, and assumptions about future demand and market conditions. We apply judgment in estimatingthe excess and obsolete inventory, and changes in demand for our inventory components could have a material impact on our inventory reservebalance.

Stock-Based Compensation

We recognize stock-basedcompensation expense over the requisite service period on a straight-line basis for all stock-based payments that are expected to vestto employees, non-employees and directors, including grants of employee stock options and other stock-based awards. Equity-classifiedawards issued to employees and non-employees, such as consultants and non-employee directors, are measured at the grant-date fair valueof the award. Forfeitures are recognized as they occur.

For accounting purposes,prior to the Business Combination, the fair value of the shares of common stock underlying stock options had historically been determinedby our board of directors. Because there had been no public market for our common stock, the board of directors exercised reasonable judgmentand considered a number of objective and subjective factors to determine the best estimate of the fair value of our common stock, includingimportant developments in our operations, sales of redeemable convertible preferred stock, actual operating results and financial performance,the conditions in the renewable solar energy industry and the economy in general, the stock price performance and volatility of comparablepublic companies, and the lack of liquidity of our common stock, among other factors. Following the Business Combination, the fair valueof common stock is based on the closing stock price on the date of grant as reported on the Nasdaq Global Select Market.

We estimate the grant-datefair value of stock options using the Black-Scholes option pricing model. The Black-Scholes option pricing model requires the input ofhighly subjective assumptions, including the fair value of the underlying common stock prior to the Business Combination, the expectedterm of the option, the expected volatility of the price of our common stock and expected dividend yield. We determine these inputs asfollows:

If any assumptions used inthe Black-Scholes option pricing model change significantly, stock-based compensation for future awards may differ materially comparedto the awards granted previously. For the thirteen-week periods ended March 31, 2024 and April 2, 2023, stock-based compensation expensewas $1.3 million and $1.0 million, respectively, of which zero and $0.7 million, respectively, related to discontinued operations. Asof March 31, 2024, we had approximately $18.8 million of total unrecognized stock-based compensation expense related to stock options.

Recent Accounting Pronouncements

A discussion of recentlyissued accounting standards applicable to Complete Solaria is described in Note 2 - Summary of Significant Accounting Policies, in theaccompanying notes to the unaudited condensed consolidated financial statements.

Results of Operations 

Thirteen-weeksended March 31, 2024 compared to the thirteen-weeks ended April 2, 2023

The following table setsforth our unaudited statements of operations data for the thirteen-weeks ended March 31, 2024 and the thirteen-weeks ended April 1, 2023.We have derived this data from our unaudited condensed consolidated financial statements included elsewhere in this prospectus. This informationshould be read in conjunction with our unaudited condensed consolidated financial statements and related notes included elsewhere in thisprospectus. The results of historical periods are not necessarily indicative of the results of operations for any future period.

Revenues

We disaggregate our revenuesbased on the following types of services (in thousands):

Revenues from solar energysystem installations for the thirteen-weeks ended March 31, 2024 was $9.9 million compared to $15.8 million for the thirteen-weeks endedApril 2, 2023. The decrease in solar energy system installation revenues of $5.9 million was primarily due to a decrease in the volumeof solar energy system installations.

Revenues from software enhancedservices for the thirteen-weeks ended March 31, 2024 was $0.1 million compared to $0.8 million for the thirteen-weeks ended April 2, 2023.The decrease was the result of a shift in focus towards solar energy installations.

Cost of Revenues

Cost of revenues for thethirteen-weeks ended March 31, 2024 was $7.8 million compared to $13.8 million for the thirteen-weeks ended April 2, 2023. The decreasein cost of revenues of $6.0 million, or 44%, was primarily due to the decrease in revenue of 40% and emphasis on managing costs.

Gross Margin

Gross margin for the thirteen-weeksended March 31, 2024 was 23% compared to 17% for the thirteen-weeks ended April 2, 2023. The improvement in gross margin was principallyattributable to managing costs.

Sales Commissions

Sales commissions for thethirteen-weeks ended March 31, 2024 was $3.1 million compared to $5.7 million for the thirteen-weeks ended April 2, 2023. The decreaseof $2.6 million, or 45%, was primarily due to the decrease in revenues.

Sales andMarketing

Sales and marketing expensefor the thirteen-weeks ended March 31, 2024 was $1.6 million compared to $0.7 million for the thirteen-weeks ended April 2, 2023. Theincrease is attributable to an increase of $0.6 million in payroll, an increase of $0.2 million in travel related expenses.

General andAdministrative

General and administrativecosts for the thirteen-weeks ended March 31, 2024 was $5.1 million compared to $8.9 million for the thirteen-weeks ended April 2, 2023.The decrease was primarily attributed to decrease in bad debt expense of $2.4 million, decrease of $2.1 million in Outside Services, andan increase in stock-based compensation costs of $0.6 million.

InterestExpense

Interest expense remainedunchanged in the amount of $3.6 million for the thirteen-weeks ended March 31, 2024 and April 2, 2023.

Other Income,Net

Other income, net for thethirteen-weeks ended March 31, 2024 increased by $1.2 million compared to the thirteen-weeks ended April 2, 2023. Other income, net inthe thirteen-weeks ended March 31, 2024 was income of $1.5 million and was comprised of $7.2 million of income arising partially offsetby $5.6 million of expense relating to changes in the fair value of our forward purchase agreements and $0.1 million relating to the residualcosts of the disposed Solaria business. 

Other income, net for thethirteen-weeks ended April 2, 2023 was income of $0.3 million and was comprised of $0.2 million change in the fair value of liability-classifiedwarrants and $.1 million related to the Solaria discontinued operations.

Net Lossfrom Continuing Operations

As a result of the factorsdiscussed above, our net loss from continuing operations for the thirteen-weeks ended March 31, 2024 was $9.6 million, a decrease of $6.1million, as compared to a net loss from continuing operations of $15.7 million for the thirteen-weeks ended April 2, 2023.

Results of Operations

Year endedDecember 31, 2023 compared to year ended December 31, 2022

In this section, we discussthe results of our operations for fiscal 2023 compared to fiscal 2022. We discuss our cashflows and current financial condition under“Capital Resources and Liquidity.”

The following table setsforth our statements of operations data for the years ended December 31, 2023 and 2022, respectively. This information should be readin conjunction with our consolidated financial statements and related notes included elsewhere in this prospectus. The results of historicalperiods are not necessarily indicative of the results of operations for any future period. Within the tables presented, percentages arecalculated based on the underlying whole-dollar amounts and, therefore, may not recalculate exactly from the rounded numbers used fordisclosure purposes.

Revenues

We disaggregate our revenuesbased on the following types of services (in thousands):

Revenues from solar energysystem installations for the year ended December 31, 2023 was $84.9 million compared to $62.9 million for the year ended December 31,2022. The increase in solar energy system installation revenues of $22.0 million, or 35%, was primarily due to an increase in the volumeof solar energy systems installations, a portion of which related to the fulfillment of delayed installations experienced in the fourthquarter of 2022 due to unusual inclement California weather, as well as an increase in average selling price of solar energy system installations.

Revenues from software enhancedservices for the year ended December 31, 2023 was $2.8 million compared to $3.6 million for the year ended December 31, 2022. The decreaseof $0.8 million was the result of a shift in focus towards solar energy installations.

Cost of Revenues

Cost of revenues for theyear ended December 31, 2023 was $69.8 million compared to $46.6 million for the year ended December 31, 2022. The increase in cost ofrevenues of $23.2 million, or 50%, was primarily due to the increase in revenues of 32%, higher inventory write-offs and rising costsassociated with supply chain constraints.

Gross Margin

Gross margin decreased 10%year over year, from 30% for the year ended December 31, 2022 to 20% for the year ended December 31, 2023. The decrease in gross marginis primarily attributed to the increasing cost of revenues as described above.

Sales Commissions

Sales commissions for theyear ended December 31, 2023, increased by $9.9 million, or 47%, compared to the year ended December 31, 2022. The increase in sales commissionswas primarily due to the increase in solar system installation revenue of 35% and higher selling costs.

Sales andMarketing

Sales and marketing expensefor the year ended December 31, 2023 increased by $0.8 million, or 12%, compared to the year ended December 31, 2022. The increase isprimarily attributable to an increase in stock-based compensation expenses due to options issued during the year ended December 31, 2023.

General andAdministrative

General and administrativecosts for the year ended December 31, 2023 increased by $18.5 million, or 135%, compared to the year ended December 31, 2022. The increasewas primarily attributed to increases in contractors and outside services costs of $6.6 million related to the Mergers, payroll of $3.9million, bad debt expense of $3.4 million, $2.0 million in stock-based compensation expenses due to options and RSUs issued, certain legalexpenses of $1.8 million and office occupancy related costs of $1.1 million for the year ended December 31, 2023.

InterestExpense

Interest expense for theyear ended December 31, 2023 increased by $9.0 million, or 181%, compared to the year ended December 31, 2022. The increase was primarilyattributed $5.4 million of interest related to debt acquired as part of the acquisition of Solaria in November 2022, which was retainedupon the divestiture from the business, as well as an increase of $2.7 million in interest expense related to the convertible notes andlong-term debt in CS Solis for the year ended December 31, 2023.

Other Expense,Net

Other expense, net was $29.9million for the year ended December 31, 2023. The expenses consisted primarily of $35.4 million in other expense related to the issuanceof common stock in connection with the FPAs, the loss on extinguishment of debt in CS Solis of $10.3 million, the loss on sale of Maxeonequity securities of $4.2 million, $3.9 million in other expense associated with the change in fair value of FPAs, $2.4 million for theissuance of bonus shares in connection with the Mergers, $3.0 million relating to expenses relating to disposed operations and other expensesof $0.4 million. These expenses were offset by $29.3 million related to the change in fair value of the Company’s warrant liabilities.

Other expense, net was $1.9million for the year ended December 31, 2022. The expenses consisted primarily of $5.2 million relating to the change of fair value ofwarrant liabilities, partially offset by a $3.2 million gain on sale of securities and $0.1 million of other income.

Net Lossfrom Continuing Operations

As a result of the factorsdiscussed above, our net loss from continuing operations for the year ended December 31, 2023 was $96.2 million, an increase of $67.5million, as compared to a net loss from continuing operations of $28.0 million for the year ended December 31, 2022.

Cash Flows for the Thirteen-Weeks Ended March31, 2024 and April 2, 2023

The following table summarizesComplete Solaria’s cash flows from operating, investing, and financing activities for the thirteen-weeks ended March 31, 2024 andApril 2, 2023 (in thousands):

Cash Flowsfrom Operating Activities

Net cash used in operatingactivities from continuing operations of $4.9 million for the thirteen-weeks ended March 31, 2024 was primarily due to the net loss fromcontinuing operations, net of tax of $9.6 million partially offset by non-cash charges of $3.5 million and net cash inflows of $1.1 millionfrom changes in our operating assets and liabilities. Non-cash charges in our operating results consisted of a $5.6 million adjustmentto our forward purchase agreement liabilities, $1.3 million stock-based compensation expense, $2.5 in million accretion of interest attributableto the CS Solis Debt, $1.0 million of other non-cash interest, $0.4 million of depreciation and amortization and $0.2 million of non-cashlease costs, partially offset by $7.2 million of income from the change in the fair value of our warrant liabilities and a $0.3 milliondecrease in our reserve for excess and obsolete inventory. The main drivers of net cash inflows derived from the changes in operatingassets and liabilities were related to a decrease in accounts receivable, net of $5.3 million and a decrease in inventories of $0.6 million,partially offset by a decrease in accounts payable of $2.6 million, a decrease in accrued expenses and other liabilities of $1.6 million,a decrease in operating lease liabilities of $0.2 million and a decrease in deferred revenue of $0.4 million. 

Net cash used in operatingactivities from continuing operations of $16.1 million for the thirteen-weeks ended April 2, 2023 was primarily due to the net loss fromcontinuing operations, net of tax of $15.7 million and net cash outflows of $5.8 million from changes in operating assets and liabilities,adjusted for non-cash charges of $5.4 million. The main drivers of net cash outflows derived from the changes in operating assets andliabilities were related to an increase in accounts receivable, net of $3.2 million, an increase in prepaid and other current assets of$1.9 million, a decrease in deferred revenue of $0.9 million, an increase in other noncurrent assets of $0.8 million, a decrease in accruedexpenses and other current liabilities of $0.6 million and an increase in inventories of $0.6 million, partially offset by an increasein accounts payable of $2.1 million and other of $0.1 million. Non-cash charges primarily consisted of a provision for credit losses of$2.1 million, non-cash interest expense of $1.2 million, a change in reserve for obsolete inventory of $0.8 million, accretion of long-termdebt in CS Solis of $0.8 million, stock-based compensation of $0.3 million, and other changes, net of $0.2 million.

The net decrease in cash,cash equivalents and restricted cash from discontinued operations of $0.2 million for the thirteen-weeks ended April 2, 2023 was entirelyattributable to net cash provided by operating activities from discontinued operations. This decrease was primarily due to the net lossfrom discontinued operations, net of tax of $7.8 million, adjusted for non-cash charges of $2.2 million and net cash inflows of $5.4 millionfrom changes in our operating assets and liabilities. Non-cash charges primarily consisted of depreciation and amortization expense of$0.8 million, stock-based compensation expense of $0.7 million and a $0.7 million change in allowance for credit losses. The main driversof net cash inflows derived from the changes in operating assets and liabilities were related to a decrease in inventories of $5.9 millionand an increase in accounts payable of $0.6 million, partially offset by a decrease in accrued expenses of $0.6 million, a decrease indeferred revenue of $0.2 million and changes in other operating assets and liabilities, net of $0.3 million.

Cash Flowsfrom Investing Activities

Net cash used in investingactivities was $0.5 million and $0.5 million for the thirteen-weeks ended March 31, 2024, and April 2, 2023, respectively, and attributableto additions to internal-use-software.

Cash Flowsfrom Financing Activities

Net cash provided by financingactivities of $5.0 million for the thirteen-weeks ended March 31, 2024 was primarily due to $5.0 million in net proceeds from the issuanceof SAFE agreements to a related party and $0.3 million final payment on the settlement of the amount due to Polar Multi-Strategy MasterFund.

Net cash provided by financingactivities of $15.6 million for the thirteen-weeks ended April 2, 2023 was due to proceeds of $11.0 million in from the issuance of convertiblenotes and draws of $14.1 million, net of $9.6 million in repayments on our Secured Credit Facility and $0.1 million of proceeds from theissuance of shares of our common stock from the exercise of common stock options.

Cash Flows for the Years Ended December 31,2023 and 2022

The following table summarizesComplete Solaria’s cash flows from operating, investing, and financing activities for the years ended December 31, 2023 and 2022(in thousands):

Cash Flowsfrom Operating Activities

Net cash used in operatingactivities from continuing operations of $58.8 million for the year ended December 31, 2023 was primarily due to the net loss from continuingoperations, net of tax of $96.2 million and net cash outflows of $17.4 million from changes in our operating assets and liabilities, adjustedfor non-cash charges of $54.1 million. Non-cash charges primarily consisted of $35.5 million for the issuance of common stock in connectionwith FPAs, $10.3 million loss on CS Solis debt extinguishment, $4.2 million loss on sale of equity securities, $3.9 million change infair value of FPAs, $4.3 million change in allowance for credit losses, $4.9 million of interest expense, $6.6 million accretion of long-termdebt in CS Solis, $2.4 million related to the issuance of bonus common stock shares in connection with the Mergers, $3.4 million of stock-basedcompensation expense, and $6.1 million change in reserve for excess and obsolete inventory, $0.9 million in lease expense and $0.9 millionin depreciation and amortization, partially offset by a decrease in the fair value of warrant liabilities of $29.3 million. The main driversof net cash outflows derived from the changes in operating assets and liabilities were related to an increase in accounts receivable,net of $12.1 million, an increase in prepaid expenses and other current assets of $4.2 million, a decrease in deferred revenue of $1.7million, a decrease in accrued expenses and other liabilities of $3.3 million and a decrease in operating lease liabilities of $0.6 million,partially offset a decrease in inventory of $1.5 million, an increase in accounts payable of $2.3 million, and a decrease in other noncurrentassets of $1.1 million.

Net cash used in operatingactivities from continuing operations of $25.2 million for the year ended December 31, 2022 was primarily due the net loss from continuingoperations of $28.0 million, and net cash outflows of $11.2 million from changes in our operating assets and liabilities, adjusted fornon-cash charges of $13.8 million. The main drivers of net cash outflows derived from the changes in operating assets and liabilitieswere related to an increase in accounts receivable of $9.7 million, and an increase in inventories of $4.9 million, and a decrease inprepaid expenses and other current assets of $1.6 million, partially offset by an increase in accounts as payable of $3.3 million anda decrease in prepaid expenses and other current assets of $1.2 million. Non-cash charges primarily consisted of $5.2 million change inthe fair value of warrant liability, interest expense primarily related to long-term debt in CS Solis of $4.8 million, reserve for obsoleteinventory of $3.6 million, increase in the allowance for doubtful accounts of $2.1 million, and depreciation and amortization expenseof $0.6 million, partially offset by non-cash income recognized upon conversion of convertible notes and SAFE agreements of $3.2 million.

The net increase in cash,cash equivalents and restricted cash from discontinued operations of $0.2 million for the year ended December 31, 2023 was entirely attributableto net cash provided by operating activities from discontinued operations. This increase was primarily due to the net loss from discontinuedoperations, net of tax of $173.4 million, adjusted for non-cash charges of $5.4 million and net cash inflows of $20.7 million from changesin our operating assets and liabilities. Non-cash charges primarily consisted of impairment of goodwill of $119.4 million, impairmentof intangible assets of $28.1 million, depreciation and amortization expense of $2.4 million, stock-based compensation expense of $1.8million and a $1.1 million change in allowance for credit losses. The main drivers of net cash inflows derived from the changes in operatingassets and liabilities were related to a decrease in accounts receivable, net of $8.2 million, an increase in accrued expenses and othercurrent liabilities of $6.0 million, a decrease in decrease in prepaids of $2.8 million, a decrease in inventories of $2.3 million, partiallyoffset by a decrease of $2.9 million in accounts payable.

Cash Flowsfrom Investing Activities

Net cash provided by investingactivities of $6.2 million for the year ended December 31, 2023 was primarily due to sale of an investment.

Net cash used in investingactivities of $3.3 million for the year ended December 31, 2022 was due to additions to internal-use-software.

Cash Flowsfrom Financing Activities

Net cash provided by financingactivities of $50.4 million for the year ended December 31, 2023 was primarily due to total proceeds from the issuance of convertiblenotes, net of $21.3 million, total proceeds from the Mergers and PIPE Financing of $19.8 million, and proceeds from the issuance of notespayable, net of $14.1 million, partially offset by the repayment of notes payable of $9.8 million.

Net cash provided by financingactivities of $31.2 million for the year ended December 31, 2022 was primarily due to net proceeds from issuance of long-term debt inCS Solis of $25.0 million, proceeds from the issuance of the 2022 Convertible Notes of $12.0 million, and proceeds from the issuance ofnotes payable of $5.5 million. This was partially offset by the repayment of notes payable of $9.5 million, payments for issuance costsof Series D redeemable convertible preferred shares of $1.4 million, and repayment of convertible notes payable to related parties of$0.5 million.

Liquidity and Capital Resources

Since our inception, we haveincurred losses and negative cash flows from operations. We incurred a net loss of $9.6 million during the thirteen-weeks ended March31, 2024, and had an accumulated deficit of $364.5 million and current debt of $65.2 million as of March 31, 2024. We had cash and cashequivalents of $1.8 million as of March 31, 2024, which were held for working capital expenditures. We believe our operating losses andnegative operating cash flows will continue into the foreseeable future. We have financed our operations primarily through sales of equitysecurities, issuance of convertible notes and cash generated from operations. Our cash equivalents are on deposit with major financialinstitutions. Our cash position raises substantial doubt regarding our ability to continue as a going concern for 12 months followingthe issuance of the unaudited condensed consolidated financial statements.

On July 16, 2024, we entered into the White Lion Purchase Agreement,as amended on July 24, 2024, pursuant to which we may, subject to the satisfaction of certain customary conditions including, withoutlimitation, the effectiveness of a registration statement registering the shares issuable pursuant to the White Lion Purchase Agreement,issue up to $30.0 million of shares of Common Stock. Additionally, on July 1, 2024, we entered into the Exchange Agreement providing for,among other things: the cancellation of all indebtedness owed to Carlyle and Kline Hill by the Company; termination of all debt instrumentsby and between the Company and Carlyle and by and between Kline Hill; the satisfaction of all obligations owed to Carlyle and Kline Hillby the Company under the terminated debt instruments; the issuance of convertible notes to Carlyle and Kline Hill; and the issuance ofshares of Common Stock to Kline Hill. For more information about the White Lion Purchase Agreement and the Exchange Agreement, pleasesee “– Recent Developments”.

We will receive the proceedsfrom any cash exercise of warrants for shares of our common stock. The aggregate amount of proceeds could be up to $254.1 million if allthe warrants are exercised for cash. However, to the extent the warrants are exercised on a “cashless basis,” the amount ofcash we would receive from the exercise of those warrants will decrease. The Private Warrants and Working Capital Warrants, as so identifiedin our unaudited condensed consolidated financial statements, may be exercised for cash or on a “cashless basis.” The PublicWarrants and the Mergers Warrants may only be exercised for cash provided there is then an effective registration statement registeringthe shares of common stock issuable upon the exercise of such warrants. If there is not a then-effective registration statement, thensuch warrants may be exercised on a “cashless basis,” pursuant to an available exemption from registration under the SecuritiesAct. We expect to use any such proceeds for general corporate and working capital purposes, which would increase our liquidity. As ofMay 13, 2024, the price of our common stock was $0.55 per share. The weighted average exercise price of the warrants was $8.70 as of March31, 2024. We believe the likelihood that warrant holders will exercise their warrants, and therefore the amount of cash proceeds thatwe would receive, is dependent upon the market price of our common stock. If the market price for our common stock remains less than theexercise price, we believe warrant holders will be unlikely to exercise.

Debt Financings

2018 BridgeNotes

In December 2018, The SolariaCorporation issued senior subordinated convertible secured notes (“2018 Notes”) totaling approximately $3.4 millionin exchange for cash. The 2018 Notes bear interest at the rate of 8% per annum and the investors are entitled to receive twice the facevalue of the 2018 Notes at maturity. In 2021, the 2018 Notes were amended extending the maturity date to December 13, 2022. In connectionwith the 2021 amendment, Solaria issued warrants to purchase shares of Series E-1 redeemable convertible preferred stock of Solaria. Thewarrants were exercisable immediately in whole or in part at and expire on December 13, 2031. As part of the Business Combination withComplete Solar, all the outstanding warrants issued to the lenders were assumed by the parent company, Complete Solaria. The 2018 Notesare secured by substantially all of the assets of Complete Solaria.

In December 2022, we enteredinto an amendment to the 2018 Notes extending the maturity date from December 13, 2022 to December 13, 2023, and the 2018 Notes remainoutstanding as of March 31, 2024. In connection with the amendment, the 2018 Notes will continue to bear interest at 8% per annum andare entitled to an increased repayment premium from 110% to 120% of the principal and accrued interest at the time of repayment. 

We concluded that the amendmentrepresented was a troubled debt restructuring as we were experiencing financial difficulty, and the amended terms resulted in a concessionto us. As the future undiscounted cash payments under the modified terms exceeded the carrying amount of the 2018 Notes on the date ofmodification, the modification was accounted for prospectively. The incremental repayment premium is being amortized to interest expenseusing the effective interest rate method. As of March 31, 2024 and December 31, 2023, the carrying value of the 2018 Notes was $11.4 millionand $11.0 million, respectively. Interest expense recognized for the thirteen-weeks ended March 31, 2024 was $0.3 million. All obligationsrelating to the 2018 Notes were cancelled pursuant to the Exchange Agreement.

RevolverLoan

In October 2020, Solariaentered into a loan agreement (“Loan Agreement”) with Structural Capital Investments III, LP (“SCI”).The Loan Agreement with SCI is comprised of two facilities, a term loan (the “Term Loan”) and a revolving loan (the“Revolving Loan”) for $5.0 million each with a maturity date of October 31, 2023. Both the Term Loan and the RevolvingLoan were fully drawn upon closing. The Term Loan was repaid prior to the acquisition of Solaria by Complete Solar and was not includedin the business combination.

The Revolving Loan has aterm of thirty-six months, with the principal due at the end of the term and an annual interest rate of 7.75% or Prime rate plus 4.5%,whichever is higher. Interest expense recognized for the thirteen-weeks ended March 31, 2024 was $0.1 million. In October 2023, the Companyentered into an Assignment and Acceptance Agreement whereby Structural Capital Investments III, LP assigned the SCI debt to Kline Hilland Rodgers Massey Revocable Living Trust for a total purchase price of $5.0 million. The SCI Revolving Loan remained outstanding as ofMarch 31, 2024. All obligations relating to the Loan Agreement were cancelled pursuant to the Exchange Agreement.

Secured CreditFacility

In December 2022, we enteredinto a secured credit facility agreement with Kline Partners and Kline Opportunity (“Secured Credit Facility”). TheSecured Credit Facility agreement allows us to borrow up to 70% of the net amount of our eligible vendor purchase orders with a maximumamount of $10.0 million at any point in time. The purchase orders are backed by relevant customer sales orders which serve as collateral.The amounts drawn under the Secured Credit Facility may be reborrowed provided that the aggregate borrowing does not exceed $20.0 million.The repayment under the Secured Credit Facility is the borrowed amount multiplied by 1.15x if repaid within 75 days and borrowed amountmultiplied by 1.175x if repaid after 75 days. We may prepay any borrowed amount without premium or penalty. Under the original terms,the Secured Credit Facility agreement was due to mature in April 2023. All obligations relating to the Secured Credit Facility were cancelledpursuant to the Exchange Agreement.

At March 31, 2024, the outstandingnet debt amounted to $12.7 million, including accrued financing cost of $5.0 million compared to December 31, 2023, the balance outstandingwas $12.2 million, including accrued financing cost of $4.5 million. We recognized interest expense of $0.5 million related to the SecuredCredit Facility during the thirteen-weeks ended March 31, 2024. 

CS SolisDebt

In February 2022, we receivedcash and recorded a liability for an investment by Carlyle into the Company. The investment was made pursuant to a subscription agreement,under which Carlyle contributed $25.6 million in exchange for 100 Class B Membership Units of CS Solis. The Class B Membership Units aremandatorily redeemable by us on the three-year anniversary of the effective date of the CS Solis amended and restated LLC agreement. TheClass B Membership Units accrue interest that is payable upon redemption at a rate of 10.5% which is accrued as an unpaid dividend, compoundedannually, and subject to increases in the event we declare any dividends. In July 2023, we amended the debt of with Carlyle as part ofthe closing of the Business Combination. The modification did not change the interest rate. The modification accelerated the redemptiondate of the investment from February 15, 2025 to March 31, 2024. All obligations relating to the CS Solis Debt were cancelled pursuantto the Exchange Agreement.

As of March 31, 2024 andDecember 31, 2023, we have recorded a liability of $35.8 million and $33.3 million, respectively, included in short-term debt in CS Solison our unaudited condensed consolidated balance sheets. For the thirteen-weeks ended March 31, 2024, we have recorded accretion of theliability as interest expense of $2.5 million. 

Forward PurchaseAgreements

In July 2023, FACT and LegacyComplete Solaria, Inc. entered into Forward Purchase Agreements with each of (i) Meteora; (ii) Polar, and (iii) Sandia.

Pursuant to the terms ofthe Forward Purchase Agreements, the FPA Sellers may (i) purchase through a broker in the open market, from holders of Shares other thanthe Company or affiliates thereof, FACT’s ordinary shares, par value of $0.0001 per share (the “Shares”). Whilethe FPA Sellers have no obligation to purchase any Shares under the FPAs, the aggregate total Shares that may be purchased under the FPAsshall be no more than 6,720,000 in aggregate. The FPA Sellers may not beneficially own greater than 9.9% of issued and outstanding Sharesfollowing the Business Combination as per the Amended and Restated Business Combination Agreement.

The key terms of the forwardcontracts are as follows:

We entered into four separateFPAs, three of which, associated with the obligation to issue 6,300,000 Shares, were entered into prior to the closing of the BusinessCombination. Upon signing the FPAs, we incurred an obligation to issue a fixed number of shares to the FPA Sellers contingent upon theclosing of the Business Combination in addition to the terms and conditions associated with the settlement of the FPAs. We accounted forthe contingent obligation to issue shares in accordance with ASC 815, Derivatives and Hedging, and recorded a liability and other income(expense), net based on the fair value upon of the obligation upon the signing of the FPAs. The liability was extinguished in July 2023upon the issuance of Complete Solaria Common Stock to the FPA sellers.

Additionally, in accordancewith ASC 480, Distinguishing Liabilities from Equity, we have has determined that the forward contracts are financial instruments otherthan shares that represent or are indexed to obligations to repurchase the issuer’s equity shares by transferring assets, referredto herein as the “forward purchase liability” on its consolidated balance sheets. We initially measured the forward purchaseliability at fair value and have subsequently remeasured it at fair value with changes in fair value recognized in earnings. 

Through the date of issuanceof the Complete Solaria Common Stock in satisfaction of our obligation to issue shares around the closing of the Business Combination,we recorded $35.5 million to other income (expense), net associated with the issuance of 6,720,000 shares of Complete Solaria Common Stock.

As of the closing of theBusiness Combination and issuance of the Complete Solaria Common Stock underlying the FPAs, the fair value of the prepaid FPAs was anasset balance of $0.1 million and was recorded on the Company’s consolidated balance sheets and within other income (expense), neton the unaudited condensed consolidated statements of operations and comprehensive loss. Subsequently, the change of fair value of theforward purchase liability amounted to an expense of $3.9 million for the fiscal year ended December 31, 2023. As of December 31, 2023,the forward purchase liabilities amounted to $3.8 million.

On December 18, 2023, theCompany and the FPA Sellers entered into separate amendments to the FPAs (the “Amendments”). The Amendments lower thereset floor price of each FPA from $5.00 to $3.00 and allow the Company to raise up to $10.0 million of equity from existing stockholderswithout triggering certain anti-dilution provisions contained in the FPAs; provided, the insiders pay a price per share for their initialinvestment equal to the closing price per share as quoted on the Nasdaq on the day of purchase; provided, further, that any subsequentinvestments are made at a price per share equal to the greater of (a) the closing price per share as quoted by Nasdaq on the day of thepurchase or (b) the amount paid in connection with the initial investment.

OnMay 7 and 8, 2024, respectively, the Company entered into the Sandia Second Amendment and the Polar Second Amendment to the Forward PurchaseAgreements. The Second Amendments lower the reset price of each Forward Purchase Agreement from $3.00 to $1.00 per share and amend theVWAP Trigger Event provision to read as “After December 31, 2024, an event that occurs if the VWAP Price, for any 20 trading daysduring a 30 consecutive trading day-period, is below $1.00 per Share.” The Sandia Second Amendment is not effective until the Companyexecutes similar amendments with both Polar and Meteora.

Subsequently,on June 14, 2024, the Company entered into an amendment to the Forward Purchase Agreement with Sandia (the “Sandia Third Amendment”).The Sandia Third Amendment sets the reset price of each Forward Purchase Agreement to $1.00 per share and amends the VWAP Trigger Eventprovision to read as “After December 31, 2024, an event that occurs if the VWAP Price, for any 20 trading days during a 30 consecutivetrading day-period, is below $1.00 per Share.” In the event either Polar or Meteora amend their Forward Purchase Agreementsto include different terms from the $1 reset price and VWAP trigger adjustment, or file a notice of a VWAP trigger event, as referenceherein, the Sandia Forward Purchase Agreement will be retroactively amended to reflect those improved terms and liquidity on the SandiaForward Purchase Agreement, including any of the 1,050,000 shares that were sold upon execution of this document. On July 17, 2024, the Company entered into the third amendment to the Forward Purchase Agreement with Polar (the“Polar Third Amendment”), pursuant to which the Company and Polar agreed that Section 2 (Most Favored Nation) of theForward Purchase Agreement is applicable to all 2,450,000 shares subject to the Forward Purchase Agreement.

SAFE Agreements

On January 31, 2024, we enteredinto a simple agreement for future equity (the “First SAFE”) with the Rodgers Massey Freedom and Free Markets CharitableTrust (the “Purchaser”) in connection with the Purchaser investing $1.5 million in the Company. The First SAFE wasinitially convertible into shares of our common stock, par value $0.0001 per share, upon the initial closing of a bona fide transactionor series of transactions with the principal purpose of raising capital, pursuant to which we have issued and sold common stock at a fixedvaluation (an “Equity Financing”), at a per share conversion price which was equal to the lower of (i)(a) $53.54 milliondivided by (b) our capitalization immediately prior to such Equity Financing (such conversion price, the “SAFE Price”),and (ii) 80% of the price per share of our common stock sold in the Equity Financing. If we consummated a change of control prior to thetermination of the First SAFE, the Purchaser will would have been automatically entitled to receive a portion of the proceeds of suchliquidity event equal to the greater of (i) $1.5 million and (ii) the amount payable on the number of shares of our common stock equalto (a) $1.5 million divided by (b)(1) $53.54 million divided by (2) our capitalization immediately prior to such liquidity event (the“Liquidity Price”), subject to certain adjustments as set forth in the First SAFE. The First SAFE was convertible intoa maximum of 1,431,297 shares of our common stock, assuming a per share conversion price of $1.05, which is the product of (i) $1.31,the closing price of our common stock on January 31, 2024, multiplied by (ii) 80%. 

On February 15, 2024, weentered into a simple agreement for future equity (the “Second SAFE” and together with the First SAFE, the “SAFEs”)with the Purchaser in connection with the Purchaser investing $3.5 million in the Company. The Second SAFE was initially convertible intoshares of our common stock upon the initial closing of an Equity Financing at a per share conversion price which was equal to the lowerof (i) the SAFE Price, and (ii) 80% of the price per share of our common stock sold in the Equity Financing. If we consummated a changeof control prior to the termination of the Second SAFE, the Purchaser would have been automatically entitled to receive an amount equalto the greater of (i) $3.5 million and (ii) the amount payable on the number of shares of our common stock equal to $3.5 million dividedby the Liquidity Price, subject to certain adjustments as set forth in the Second SAFE. The Second SAFE was convertible into a maximumof 3,707,627 shares of our common stock, assuming a per share conversion price of $0.94, which is the product of (i) $1.18, the closingprice of the Common Stock on February 15, 2024, multiplied by (ii) 80%.

On April 21, 2024, we enteredinto an amendment for each of our First SAFE and Second SAFE to convert the invested amounts into shares of our common stock. The conversionshare price was $0.36, calculated as the product of (i) $0.45, the closing price of our common stock on April 19, 2024, multiplied by(ii) 80%. The First SAFE and Second SAFE converted into 4,166,667 and 9,722,222 shares of our common stock, respectively.

On May 13, 2024, we enteredinto a SAFE (the “Rodgers Group SAFE”) with the Rodgers Massey Freedom and Free Markets Charitable Trust (the “RodgersGroup”) in connection with the Rodgers Group investment of $1,000,000. The Rodgers Group SAFE is convertible into shares ofCommon Stock upon the initial closing of a bona fide transaction or series of transactions with the principal purpose of raising capital,pursuant to which we issue and sell Common Stock at a fixed valuation (an “Equity Financing”), at a per share conversionprice which is equal to 50% of the price per share of Common Stock sold in the Equity Financing. If we consummate a change of controlprior to the termination of the Rodgers Group SAFE, the Rodgers Group will be automatically entitled to receive a portion of the proceedsof such liquidity event equal to $1,000,000, subject to certain adjustments as set forth in the Rodgers Group SAFE. The Rodgers GroupSAFE is convertible into a maximum of 2,750,000 shares of Common Stock, assuming a per share conversion price of $0.275, which is theproduct of (i) $0.55, the closing price of the Common Stock on May 13, 2024, multiplied by (ii) 50%. Thurman J. Rodgers is a trustee ofthe Rodgers Group, the Executive Chairman of the board of directors of the Company, and the Chief Executive Officer of the Company.

Ayna.AI LLCCommon Stock Warrant

On June 17, 2024, CompleteSolaria executed the Ayna Warrant, pursuant to which Ayna is entitled to purchase 6,000,000 shares of Common Stock at the exercise priceper share of $0.01, subject to the provisions and upon the terms and conditions set forth in the Warrant. The issuance of this Warrantby Complete Solaria to Ayna is in satisfaction of the compensation owed by Complete Solaria to Ayna for Complete Solaria under the termsof the Statement of Work, signed May 21, 2024 (and effective as of March 12, 2024), as incorporated into the Master Services Agreement,dated March 12, 2024.

Off Balance Sheet Arrangements

As of the date of this prospectus,Complete Solaria does not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effecton our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures,or capital resources that are material to investors. The term “off-balance sheet arrangement” generally means any transaction,agreement, or other contractual arrangement to which an entity unconsolidated with Complete Solaria is a party, under which it has anyobligation arising under a guaranteed contract, derivative instrument, or variable interest or a retained or contingent interest in assetstransferred to such entity or similar arrangement that serves as credit, liquidity, or market risk support for such assets. 

Currently, Complete Solariadoes not engage in off-balance sheet financing arrangements.

Smaller Reporting Company Status

Complete Solaria is a “smallerreporting company,” meaning that the market value of Complete Solaria’s shares of common stock held by non-affiliates is lessthan $700 million and Complete Solaria’s annual revenue was less than $100 million during the most recently completed fiscal year.Complete Solaria will continue to be a smaller reporting company if either (i) the market value of Complete Solaria’s shares heldby non-affiliates is less than $250 million or (ii) Complete Solaria’s annual revenue was less than $100 million during the mostrecently completed fiscal year and the market value of Complete Solaria’s shares held by non-affiliates is less than $700 million.As a smaller reporting company, Complete Solaria may choose to present only the two most recent fiscal years of audited financial statementsand Complete Solaria has reduced disclosure obligations regarding executive compensation.

Emerging Growth Company Status

Section 102(b)(1) of theJumpstart Our Business Startups Act of 2012, or the JOBS Act, exempts emerging growth companies from being required to comply with newor revised financial accounting standards until private companies are required to comply with the new or revised financial accountingstandards. The JOBS Act provides that a company can choose not to take advantage of the extended transition period and comply with therequirements that apply to non-emerging growth companies, and any such election to not take advantage of the extended transition periodis irrevocable.

Complete Solaria is an “emerginggrowth company” as defined in Section 2(a) of the Securities Act, and has elected to take advantage of the benefits of the extendedtransition period for new or revised financial accounting standards. Complete Solaria will remain an emerging growth company until theearliest of (i) the last day of the fiscal year in which the market value of common stock that is held by non-affiliates exceeds $700million as of the end of that year’s second fiscal quarter, (ii) the last day of the fiscal year in which we has total annual grossrevenue of $1.235 billion or more during such fiscal year (as indexed for inflation), (iii) the date on which we have issued more than$1.0 billion in non-convertible debt in the prior three-year period, or (iv) December 31, 2025. Complete Solaria expects to continue totake advantage of the benefits of the extended transition period, although it may decide to early adopt such new or revised accountingstandards to the extent permitted by such standards. This may make it difficult or impossible to compare our financial results with thefinancial results of another public company that is either not an emerging growth company or is an emerging growth company that has chosennot to take advantage of the extended transition period exemptions because of the potential differences in accounting standards used.

Business

Our Mission

Our mission is to deliverenergy-efficient solutions to homeowners and small to medium-sized businesses that allow them to lower their energy bills while reducingtheir carbon footprint. Complete Solaria has created a unique, end-to-end offering that delivers a best-in-class customer experience witha robust technology platform, financing solutions, and high-performance solar modules.

Business Overview

Complete Solaria was formedin November 2022 through the merger of Complete Solar and Solaria. Complete Solaria created a technology platform to offer clean energyproducts to homeowners by enabling a national network of sales partners and build partners. Our sales partners generate solar installationcontracts with homeowners on our behalf. To facilitate this process, we provide the software tools, sales support and brand identity toour sales partners, making them competitive with national providers. This turnkey solution makes it easy for anyone to sell solar. Wefulfill our customer contracts by engaging with local construction specialists. We manage the customer experience and complete all pre-constructionactivities prior to delivering build-ready projects including hardware, engineering plans, and building permits to our builder partners.We manage and coordinate this process through our proprietary HelioTrack^TM software system.

Complete Solaria providesresidential solar system designs, proposals, and CAD drawing sets to existing sales partners and other residential solar companies, regardlessof whether they participate as or builder partners. In doing so, Complete Solaria seeks to power the entire solar power industry.

In October 2023, we soldsolar panel assets of The Solaria Corporation, including intellectual property and customer contracts to Maxeon, pursuant to the DisposalAgreement. Under the terms of the Disposal Agreement, Maxeon agreed to acquire certain assets and employees of Complete Solaria for anaggregate purchase price of approximately $11.0 million consisting of 1,100,000 shares of Maxeon ordinary shares.

Revenue Model

Our current products fallinto two general categories: Solar System Sales and Software Enhanced Services.

TechnologyInnovation

Since its inception, CompleteSolaria has continued to invest in a platform of services and tools to enable large-scale operations for sales and builder partners. Theplatform incorporates processes and software solutions that simplify and streamline design, proposals, and project management throughoutthe lifecycle of a residential solar project. The platform empowers new market entrants and smaller industry participants with its plug-and-playcapabilities. The ecosystem Complete Solaria has built provides broad reach, and we believe it positions Complete Solaria for sustainedand rapid growth through a capital-efficient business model. The network of our partners continues to expand today.

Differentiationand Operating Results

Delivering a differentiatedcustomer experience is core to Complete Solaria’s strategy. It emphasizes a customized solution, including a design specific toeach customer’s home and pricing configurations that typically drive both customer savings and value. Developing a trusted brandand providing a customized solar service offering resonates with customers accustomed to a traditional residential power market that isoften overpriced and lacking in customer choice.

FinancingSolutions

Complete Solaria assistsits end customers with financing solutions through third-party lease providers, power purchase agreement providers and third-party loanproviders.

Customers may lease a CompleteSolaria solar system. The lease provider will purchase the solar system and the property owner will rent the solar system in exchangefor the electricity the system produces.

Through a power purchaseagreement, a third-party developer installs, owns, and operates a solar system on a customer’s property. The customer then purchasesthe system’s electric output for a predetermined period. A power purchase agreement allows the customer to receive stable and oftenlow-cost electricity with no upfront cost while also enabling the owner of the system to take advantage of tax credits and receive incomefrom the sale of electricity.

Lastly, third-party loanproviders offer Complete Solaria’s end customers a loan to purchase solar systems, and then the customers will pay off the loanover a period of time.

Our Strategy

Complete Solaria’sstrategy focuses on providing its sales partners with the software tools, sales support, and ability to compete effectively with nationalproviders. This turnkey solution makes it easy for anyone to sell solar.

Solar SystemSales

Solar System Sales are fullsystems sold to homeowners and small to medium-sized commercial businesses through Complete Solaria’s sales partner channels. CompleteSolaria and its builder partners fulfill and install the systems.

Softwareand Services

Software and services salesinclude access to Complete Solaria’s HelioQuote^TM sales proposal and system design software; proposal writing servicesthat support field sales agents; and design, engineering, and permitting services that improve subscale solar companies’ operationaleffectiveness and cost efficiency. See “Increase revenue and margin by bundling software enhanced services with solar modulesales” above.

In support of Complete Solaria’sstrategy to increase revenue and expand margin opportunities in its two core products, Complete Solaria also considers the following activitiesto be key elements of its strategy:

Our Strengths

The following strengths positionComplete Solaria to drive the mass adoption of residential solar in a manner that maximizes the value of its growing customer base overthe long term:

Technology Suite

HelioSuite is an innovative,end-to-end software platform designed to manage every aspect of a residential solar project. HelioSuite was originally designed to supportour internal sales and build partners to ensure a seamless customer experience. In 2021, Complete Solaria commercialized the softwaresolutions through Helio Proposal Services provide proposal services for residential solar sales companies outside of Complete Solar’sexisting network of sales partners. Features of the Technology Suite include the following capabilities, some of which are planned forroll-out in the future:

Customer Service and Operations

Solar SystemSales

Complete Solaria has madesignificant investments to create a platform of services and tools that addresses customer origination, system design and installation,and general customer support. Before a sales representative conducts a consultation, homeowners are pre-qualified based on a preliminaryevaluation which considers a homeowner’s credit, home ownership, electricity usage and suitability of the roof based on age, condition,shading and pitch. Once a homeowner is pre-qualified, all necessary data is collected and a proposal is generated for the homeowner. Ifa homeowner is interested in moving forward, a customer contract is automatically generated for electronic execution. This contract thenundergoes a final review and verification of credit before it is countersigned.

Once an agreement is fullyexecuted, a service tech performs a site audit at the home to inspect the roof and measure shading. This audit follows a final systemdesign plan and an application for any required building permits. The plans are reviewed to ensure they conform to the executed contractor to process a change order if required. A second production estimate is generated at this time and if the expected energy productionexceeds or falls below the original estimate by certain thresholds, the homeowner agreement is modified accordingly. To reduce installationcosts and operational risk, there are defined design and installation quality standards designed to ensure that homeowners receive a qualityproduct, regardless of who installs the system.

After the solar panels areinstalled, the customer care team follows up with the homeowner with a survey on their experience. If a system requires maintenance, CompleteSolaria or a partner or dedicated service-only contractor will visit the customer’s home and perform any necessary repairs or maintenanceat no additional cost to the customer.

SoftwareEnhanced Services

Complete Solaria’spartners are third-party Sales organizations that use the design and proposal services for their residential solar projects. CompleteSolaria staffs a sales support desk six days a week to provide live customer support for sales representatives who need a design or proposalfor a potential homeowner sale. These customer support teams rapidly produce proposals, answer questions, and offer other forms of supportfor sales personnel.

Suppliers

The main components of aresidential solar energy system are the solar modules, inverters, and racking systems. Complete Solaria generally purchases these componentsfor build partners from select distributors, which are then shipped to build partners for installation. There is a running list of approvedsuppliers in the event any of the sources for modules, inverters or other components become unavailable. If Complete Solaria fails todevelop, maintain, and expand relationships with these or other suppliers, the ability to meet anticipated demand for solar energy systemsmay be adversely affected, or at higher costs or delayed. If one or more of the suppliers ceases or reduces production due to its financialcondition, acquisition by a competitor or otherwise, it may be difficult to identify alternate suppliers quickly or to qualify alternativeproducts on commercially reasonable terms, and the ability to satisfy this demand may be adversely affected.

Complete Solaria screensall suppliers and components based on expected cost, reliability, warranty coverage, ease of installation, etc. The declining cost ofsolar modules and the raw materials necessary to manufacture them have been a key driver in the prices charged for electricity and homeowneradoption of solar energy. If solar module and raw material prices do not continue to decline at the same rate as they have over the pastseveral years, the resulting prices could slow growth and cause financial results to suffer. If Complete Solaria is required to pay higherprices for supplies, accept less favorable terms, or purchase solar modules or other system components from alternative, higher-pricedsources, financial results may be adversely affected.

Complete Solaria’sbuild partners are responsible for and source the other products related to solar energy systems, such as fasteners, wiring and electricalfittings. From time-to-time, Complete Solaria procures these other products related to solar energy systems for its own installation business.Complete Solaria manages inventory through local warehouses and as segregated inventory at build partners.

The main components of aresidential solar module are the solar cells. Complete Solaria’s solar modules are generally manufactured by third-party selectmanufacturers and are purchased from distributors.

Complete Solaria screensall suppliers and components based on expected cost, reliability, warranty coverage, ease of installation, and other factors. It typicallyenters into master contract arrangements with major suppliers that define the general terms and conditions of purchases, including warranties,product specifications, indemnities, delivery and other customary terms.

Competition

Solar SystemSales

Complete Solaria’sprimary competitors are the traditional utilities that supply electricity to potential customers. It competes with these traditional utilitiesprimarily based on price (cents per kilowatt hour), predictability of future prices (by providing pre-determined annual price escalations)and the ease by which homeowners can switch to electricity generated by solar energy systems. Based on these factors, Complete Solariacompetes favorably with traditional utilities.

Complete Solaria competesfor homeowner customers with other solar sales and installation companies and with solar companies with business models that are similarto Complete Solaria’s. Complete Solaria’s main competitors can be grouped broadly into (a) national, vertically integratedcompanies with established brands and proprietary consumer financing products; (b) small, local solar contractors who operate with relativelylow-fixed overhead expenses but who may lack systems, tools, and sophisticated product offerings; and (c) sales aggregators who engagewith third-party sales companies to generate installation contracts. Complete Solaria competes favorably with these companies, with (a)better customer experience and better Sales Partner experience than the national vertically integrated companies; (b) better pricing andbroader customer offerings than smaller local solar contractors; and (c) a better build partner experience than sales aggregators.

Complete Solaria also facescompetition from purely finance-driven organizations that acquire homeowner customers and then subcontract out the installation of solarenergy systems, installation businesses that seek financing from external parties, large construction companies and utilities and sophisticatedelectrical and roofing companies. At the same time, the open platform provides opportunities for these competitors to become partners,and the open platform offers these new market participants a cost-effective way to enter the market and compelling process, technologyand supply chain services over the long term.

Intellectual Property

Complete Solaria seeks toprotect its intellectual property rights by relying on federal, state and common law rights in the U.S. and other countries, as well ascontractual restrictions. It generally enters into confidentiality and invention assignment agreements with employees and contractors,and confidentiality agreements with other third parties, in order to limit access to, and disclosure and use of, confidential informationand proprietary technology. In addition to these contractual arrangements, Complete Solaria also relies on a combination of trademarks,trade dress, domain names, copyrights, and trade secrets to help protect the brand and other intellectual property.

Government Regulations and Incentives

Governments have used differentpublic policy mechanisms to accelerate the adoption and use of solar power. Examples of customer-focused financial mechanisms includecapital cost rebates, performance-based incentives, feed-in tariffs, tax credits, renewable portfolio standards, net metering, and carbonregulations. Some of these government mandates and economic incentives are scheduled to be reduced or to expire or could be eliminated.Capital cost rebates provide funds to customers based on the cost and size of a customer’s solar power system. Performance-basedincentives provide funding to a customer based on the energy produced by their solar power system. Feed-in tariffs pay customers for solarpower system generation based on energy produced at a rate generally guaranteed for a period of time. Tax credits reduce a customer’staxes at the time the taxes are due. Renewable portfolio standards mandate that a certain percentage of electricity delivered to customerscomes from eligible renewable energy resources. Net metering allows customers to deliver to the electric grid any excess electricity producedby their on-site solar power systems and to be credited for that excess electricity at or near the full retail price of electricity. Carbonregulations, including cap-and-trade and carbon pricing programs, increase the cost of fossil fuels, which release climate-altering carbondioxide and other greenhouse gas emissions during combustion.

In addition to the mechanismsdescribed above, there are various incentives for homeowners and businesses to adopt solar power in The Inflation Reduction Act of 2022.Moreover, in Europe, the European Commission has mandated that its member states adopt integrated national climate and energy plans toincrease their renewable energy targets to be achieved by 2030, which could benefit the deployment of solar. However, the U.S. and EuropeanUnion, among others, have imposed tariffs or are evaluating the imposition of tariffs on solar panels, solar cells, polysilicon, and othercomponents. These and any other tariffs or similar taxes or duties may offset the incentives described above and increase the price ofComplete Solaria’s solar products.

Employees and Human Capital Resources

As of July 16, 2024, CompleteSolaria had 113 employees. Complete Solaria also engages independentcontractors and consultants. No employees are covered by collective bargaining agreements. There have not been any work stoppages. 

Complete Solaria’shuman capital resources objectives include identifying, recruiting, retaining, incentivizing and integrating its existing and new employees.The principal purposes of Complete Solaria’s equity incentive plans are to attract, retain and motivate personnel through the grantingof equity-based compensation awards, in order to increase stockholder value and the success of Complete Solaria by motivating such individualsto perform to the best of their abilities and achieve Complete Solaria’s objectives.

Facilities

Complete Solaria’scorporate headquarters and executive offices are located in Fremont, California. Complete Solaria also maintains an office in Lehi, Utah.

Complete Solaria leases allof the facilities and does not own any real property. Complete Solaria believes that current facilities are adequate to meet ongoing needs.If additional space is required, Complete Solaria believes that it will be able to obtain additional facilities on commercially reasonableterms.

Legal Proceedings

Complete Solaria is fromtime to time subject to, and is presently involved in, litigation and other legal proceedings that arise in the ordinary course of business.

SolarPark

OnJune 16, 2022, SolarCA, LLC (then Solaria Corporation), which is a wholly owned subsidiary of Complete Solaria, Inc., commenced an arbitrationagainst SolarPark Korea Co., LTD (“SolarPark”) in the Singapore International Arbitration Centre (the “SIAC”)alleging breach of contract for approximately $47M in damages. In January 2023, SolarPark demanded approximately $80.0 million duringdiscussions . In February 2023, SolarCA, LLC submitted its statementof claim seeking approximately $26.4 million in damages against Solar Park. In May 2023, SolarPark filed its Statement of Defense andCounterclaim alleging damages that total approximately $160.0 million. On June 26, 2024, the SIAC issued a ruling that withdrew all claimsof both parties. The claims were withdrawn without prejudice. The Company believes that SolarPark’s allegations lack merit and intendsto vigorously defend all claims that may later be asserted. No liability has been recorded in the Company’s consolidated financialstatements as the likelihood of a loss is not probable at this time.

On March 16, 2023, SolarParkfiled a complaint against Solaria and the Company in the United States District Court for the Northern District of California. The complaintalleges a civil conspiracy involving misappropriation of trade secrets, defamation, tortious interference with contractual relations,inducement to breach of contract, and violation of California’s Unfair Competition Law. The complaint alleges that SolarPark hassuffered in excess of $220 million in damages. The ultimate outcome of this litigation is currently unknown and could result in a materialliability to the Company. However, the Company believes that the allegations lack merit and intends to vigorously defend all claims asserted.In August 2023, the Court granted SolarPark’s preliminary injunction motion relating to SolarPark’s alleged trade secretsallegations. In August 2023, the Court granted the Company’s motion to stay and stayed the litigation pending the outcome of thearbitration in Singapore. No liability has been recorded in the Company’s consolidated financial statements as the likelihood ofa loss is not probable at this time.

Siemens

In July 2021, Siemens GovernmentTechnologies, Inc. and Siemens Industry, Inc. (collectively, “Siemens”) filed a lawsuit against Solaria Corporationand SolarCA, LLC, which are wholly-owned subsidiaries of Complete Solaria, Inc. (collectively, the “Subsidiaries”),in Fairfax Circuit Court (the “Court”) in Fairfax, Virginia in the case captioned Siemens Government Technologies,Inc. and Siemens Industry Inc. v. Solaria Corporation and SOLARCA, LLC (Case No. CL-2021-10556). In such lawsuit, Siemens allegedthat the Subsidiaries breached express and implied warranties under a purchase order that Siemens placed with the Subsidiaries for a solarmodule system. Siemens claimed damages of approximately $6.9 million, inclusive of amounts of the Subsidiaries’ indemnity obligationsto Siemens, plus attorneys’ fees.

OnFebruary 22, 2024, the Court issued an order against the Subsidiaries which awarded Siemens approximately $6.9 million, inclusive of theSubsidiaries’ indemnity obligations to Siemens, plus legal fees, the amount of which will be determined at a later hearing. On March15, 2024, Siemens filed a motion seeking to recover $2.67 million for attorneys’ fees, expenses, and pre-judgment interest, andthe Court conducted a hearing on Siemens’ motion in late May 2024. On June 17, 2024, the Court entered a final order, which awardsSiemens a total of $2,007,024.63 in attorneys’ fees and costs. On July 16, 2024, the Subsidiaries filed its notice of appeal withthe Virginia Court of Appeals to appeal such judgment. The Company has recorded $6.9 million as a legal loss related to this litigation,excluding the $2.67 million for attorneys’ fees, expenses, and pre-judgment interest, in accrued expenses and other current liabilitieson its unaudited condensed consolidated balance sheets as of March 31, 2024 and December 31, 2023.

Edelman

On January 12, 2024, the Companywas named as a defendant in a class action complaint filed by Eliezer Edelman in the Supreme Court of New York, County of New York, alleging,among other things, breach of contract, in connection with that certain Warrant Agreement, dated February 25, 2021, by and between theCompany and Continental Stock Transfer & Trust Company, issued by FACT in connection with the Business Combination Agreement withthe Company. The complaint alleges damages of at least $5M for the class and alleges damages of $5.221 per warrant. The complaint alsoseeks a declaratory judgment that the warrant price be reduced $6.279. The Company believes that the allegations lack merit and intendsto vigorously defend all claims that may later be asserted. No liability has been recorded in the Company’s consolidated financialstatements as the likelihood of a loss is not probable at this time.

Complete Solaria is not presentlya party to any other legal proceedings that in the opinion of its management, if determined adversely to Complete Solaria, would havea material adverse effect on its business, financial condition, operating results, or cash flows. Regardless of the outcome, litigationcan have an adverse impact on Complete Solaria because of defense and settlement costs, diversion of management resources, and other factors.

U.S. Corporate Information

The Company was originallyknown as FACT. On July 18, 2023, Complete Solaria, FACT, and certain other entities consummated the transactions contemplated under thatcertain amended and restated Business Combination Agreement, dated as of May 26, 2023, following the approval at the special meeting ofthe stockholders of FACT held July 11, 2023. In connection with the closing of the Business Combination, the Company changed its namefrom Freedom Acquisition I Corp. to Complete Solaria, Inc.

Its principal executive officesare located at 45700 Northport Loop E, Fremont, CA 94538, and the telephone number is (510) 270-2507.

Access to Company Information

The Company files or furnishesperiodic reports and amendments thereto, including its Annual Reports on Form 10-K, its Quarterly Reports on Form 10-Q and Current Reportson Form 8-K, proxy statements and other information with the SEC. In addition, the SEC maintains a website (www.sec.gov) that containsreports, proxy and information statements, and other information regarding issuers that file electronically. Complete Solaria’sinternet address is https://www.completesolaria.com. The Company makes available, free of charge, its Annual Report on Form 10-K, quarterlyreports on Form 10-Q, current reports on Form 8-K, and all amendments to those reports as soon as reasonably practicable after such reportshave been filed with or furnished to the SEC through its internet website.

Management

Our directors and executiveofficers and their ages as of July 1, 2024

ExecutiveOfficers

Thurman J. Rodgers

Thurman J. (T.J.) Rodgershas served as the Chief Executive Officer of Complete Solaria since April 2024 and as a member of the Complete Solaria Board since November2022 and as Executive Chairman since June 2023. Mr. Rodgers founded Cypress Semiconductor in 1982 and served as Cypress’ Chief ExecutiveOfficer from 1982 to 2016. Mr. Rodgers currently serves on the boards of other energy-related companies: including Enovix, Enphase EnergyInc. (energy and storage technologies), and FTC Solar (single-axis tracking for solar). From 2004 to 2012, he served as a member of Dartmouth’sboard of trustees. Mr. Rodgers was a Sloan scholar at Dartmouth, where he graduated in 1970 as the Salutatorian with a double major inPhysics and Chemistry. He won the Townsend Prize and the Haseltine Chemistry-Physics Prize as the top physics and chemistry student inhis class. Mr. Rodgers holds a master’s degree and a Ph.D. in Electrical Engineering from Stanford University, where he attendedon a Hertz fellowship.

Daniel Foley

Daniel Foley has served asthe Chief Financial Officer of Complete Solaria since June 2024. From June 2021 to December 2023, Mr. Foley served as the Chief FinancialOfficer for Common Citizen. From April 2021 to June 2021, Mr. Foley served as the Senior Vice President and Treasurer for TerrAscend.From January 2018 to April 2021, Mr. Foley served as the Vice President of Corporate Finance, Treasury & Investor Relations at Curaleaf.Prior to that, Mr. Foley held senior positions in Corporate Finance and Investor Relations for Station Casinos and MGM MIRAGE. Previousexperience includes working as an Investment Analyst at Wall Street Associates and as Vice President of Finance at New Cotai Holdings.Foley began his career as a Senior Associate in Gaming, Lodging & Leisure Equity Research at Bear Stearns. Mr. Foley brings over 25years of capital markets and finance experience to Complete Solaria, as well as a track record of driving strong financial results, instillingfinancial and operational discipline, and demonstrating inspirational leadership. Mr. Foley holds an M.B.A. from the University of SouthernCalifornia and a Bachelor of Science in economics from the University of Utah.

Brian Wuebbels

Brian Wuebbels has servedas the Chief Operations Officer of Complete Solaria since April 2024, and previously served as the Chief Financial Officer of CompleteSolaria from February 2023 to April 2024. Mr. Wuebbels will resign as the Chief Operating Officer of Complete Solaria effective as ofAugust 16, 2024. From 2021 to 2022, Mr. Wuebbels served as the President of Control & Elevator at the Nidec Motor Corporation wherehe led a global team of executives in Sales, Marketing, Engineering and Operations. From 2019 to 2021, Mr. Wuebbels served as Chief FinancialOfficer and Head of Operations for Motion & Control. From 2017 to 2018, Mr. Wuebbels served as Chief Financial Officer and Head ofOperations for GCL, a solar power company. From 2010 to 2016, Mr. Wuebbels served as the Executive Vice President, Chief Financial Officerand Chief Administrative Officer at SunEdison. From 2003 to 2007, Mr. Wuebbels served as a finance executive at Honeywell. From 1993 to2003, Mr. Wuebbels served in various roles at General Electric. Mr. Wuebbels holds an M.B.A. from the University of Southern Californiaand a Bachelor of Science in mechanical engineering from University of Illinois Urbana-Champaign.

Non-EmployeeDirectors

Chris Lundell

Christopher Lundell has servedas a member of the Complete Solaria Board since November 2023. Mr. Lundell served as the Chief Executive Officer of Complete Solaria fromDecember 2023 to April 2024. Mr. Lundell is the Founder of CMO Grow, a marketing consultancy firm. Prior to that, he was the CMO at VivintSolar, the President of the Americas at NEXThink, and CMO and COO at Domo. He holds an M.B.A. from Brigham Young University.

Devin Whatley

Devin Whatley has servedas a member of the Complete Solaria Board since November 2022. Since 2010, Mr. Whatley has served as the Managing Partner at the EcosystemIntegrity Fund. Mr. Whatley serves as a member of the board of directors of several private companies focused on renewable energy. Mr.Whatley was a CFA Charterholder and holds a B.A. in East Asian Studies with a Business Emphasis from the University of California, LosAngeles and an M.B.A. from the Wharton School at the University of Pennsylvania.

Tidjane Thiam

Mr. Thiam served as a memberof the FACT Board and as Executive Chairman of FACT since inception until the Business Combination in July 2023. In 2021, Mr. Thiam wasappointed Chairman of Rwanda Finance Limited. He also serves as a Director and Chair of the Audit Committee of Kering S.A., the Frenchluxury group. Mr. Thiam is also a Special Envoy on Covid 19 for the African Union. From 2015 to 2020, Mr. Thiam was Chief Executive Officerof Credit Suisse Group AG. From 2014 to 2019, Mr. Thiam was a Director of 21st Century Fox and served on its Nominating and CorporateGovernance Committee. Mr. Thiam previously served at Prudential plc, a global insurance company based on London, as the Group Chief Executivefrom 2009 to 2015, a Director from 2008 to 2015 and Group Chief Financial Officer from 2008 to 2009. Mr. Thiam holds an M.B.A. from INSEADand graduated from École Nationale Supérieure des Mines de Paris in 1986 and from École Polytechnique in Paris in1984.

Adam Gishen

Mr. Gishen served as FACT’sChief Executive Officer from February until the Business Combination in July 2023, and served as one of FACT’s initial board observers.From 2015 to 2020, Mr. Gishen served in several senior roles at Credit Suisse Group AG, including Global Head of Investor Relations, CorporateCommunications and Marketing and Branding. Prior to 2015, Mr. Gishen was a partner at Ondra Partners, a financial advisory firm and previousto this worked as a Managing Director at Nomura and at Lehman Brothers in the area of equity capital markets. Mr. Gishen graduated fromthe University of Leeds.

Ronald Pasek

Ronald Pasek has served asa member of the Complete Solaria Board since February 2023. Since 2015, Mr. Pasek has served as the chairman of the board of directorsof Spectra7 Microsystems Inc., a Canadian publicly-traded consumer connectivity company. From 2016 to 2020, Mr. Pasek was Chief FinancialOfficer of NetApp. From 2009 until its acquisition by Intel in December 2015, Mr. Pasek served as Senior Vice President, Finance and ChiefFinancial Officer of Altera Corporation, a worldwide provider of programmable logic devices. Mr. Pasek was previously employed by SunMicrosystems, in a variety of roles including Vice President, Corporate Treasurer and Vice President of worldwide field finance, worldwidemanufacturing and U.S. field finance. Mr. Pasek holds a B.S. degree from San Jose State University and an M.B.A. degree from Santa ClaraUniversity.

Antonio R. Alvarez

Antonio R. Alvarez has servedas a member of the Complete Solaria Board since November 2022. Mr. Alvarez served as the President of Complete Solaria since the mergerof Complete Solar and Solaria in November 2022 until March 2023. From 2020 to 2022, Mr. Alvarez served as Solaria’s Chief ExecutiveOfficer. Prior to 2020, Mr. Alvarez served in various executive roles at Altierre Corporation, Aptina Imaging, Advanced Analogic Technologies,Leadis Technology and Cypress Semiconductor. Currently, Mr. Alvarez serves on the board of directors of NexGen Power Systems and previouslyserved as a board member of SunEdison, SunEdison Semiconductor, ChipMOS Technology, and Validity Sensors. Mr. Alvarez holds a B.S. andan M.S. in Electrical Engineering from the Georgia Institute of Technology.

William J. Anderson

William J. Anderson servedas the Chief Executive Officer of Complete Solaria from November 2022 to December 2023. From 2010 to 2022, he served as the Chief ExecutiveOfficer of Complete Solar. From 2007 to 2009, Mr. Anderson served as CEO of Risk Allocation Systems, Inc., a lending platform connectingautomobile dealerships and credit unions in order to offer point of sale automobile loans to car buyers. From 2009 to 2010, Mr. Andersonserved as Partner at SVE Partners, a boutique consulting firm serving technology start-ups and venture capital investors. Mr. Andersonholds a B.S. in Managerial Sciences from the Massachusetts Institute of Technology and an M.B.A. from the Stanford University GraduateSchool of Business.

Role of Board in Risk Oversight

One of the key functionsof the Complete Solaria Board is the informed oversight of Complete Solaria’s risk management process. The Complete Solaria Boarddoes not anticipate having a standing risk management committee, but rather anticipates administering this oversight function directlythrough the Complete Solaria Board as a whole, as well as through various standing committees of the Complete Solaria Board that addressrisks inherent in their respective areas of oversight. In particular, the Complete Solaria Board is responsible for monitoring and assessingstrategic risk exposure and Complete Solaria’s audit committee is responsible for considering and discussing Complete Solaria’smajor financial risk exposures and the steps its management will take to monitor and control such exposures, including guidelines andpolicies to govern the process by which risk assessment and management is undertaken. The audit committee monitors compliance with legaland regulatory requirements. Complete Solaria’s compensation committee assesses and monitors whether Complete Solaria’s compensationplans, policies and programs comply with applicable legal and regulatory requirements.

Board Committees

Upon the Closing of the BusinessCombination, our Board formed an audit committee, a compensation committee, and a nominating and corporate governance committee. The CompleteSolaria Board may from time to time establish other committees.

Complete Solaria’sChief Executive Officer and other executive officers will regularly report to the non-executive directors and each standing committeeto ensure effective and efficient oversight of its activities and to assist in proper risk management and the ongoing evaluation of managementcontrols.

Audit Committee

The audit committee consistsof Ronald Pasek, who serves as the chairperson, Adam Gishen and Tidjane Thiam. Each member of the audit committee qualifies as an independentdirector under the Nasdaq corporate governance standards and the independence requirements of Rule 10A-3 under the Exchange Act. RonaldPasek qualifies as an “audit committee financial expert” as such term is defined in Item 407(d)(5) of Regulation S-K and possessesthe requisite financial expertise required under the applicable requirements of Nasdaq.

The responsibilities of theaudit committee include, among other things:

The Complete Solaria Boardadopted a written charter of the audit committee which is available on Complete Solaria’s website.

CompensationCommittee

The Compensation Committeeconsists of Antonio R. Alvarez, who serves as the chairperson, Ronald Pasek and Devin Whatley. Each committee member a “non-employeedirector” as defined in Rule 16b-3 promulgated under the Exchange Act. Although Mr. Alvarez is not an independent director, Section5605(d)(2)(B) of the Nasdaq listing standards nonetheless permits the appointment of a non-independent director to the compensation committeeif the board of directors, under exceptional and limited circumstances, determines that the non-independent director’s membershipis required by the best interests of the company and its stockholders. Based on Mr. Alvarez’s extensive experience with CompleteSolaria and familiarity with the industry, the Complete Solaria Board concluded that Mr. Alvarez’s appointment to, and membershipon, the compensation committee was in the best interests of Complete Solaria and its stockholders. Further, a majority of the membersof the compensation committee are independent directors. Mr. Alvarez is permitted to serve on the Compensation Committee for a maximumof two years.

The responsibilities of thecompensation committee are:

The Complete Solaria Boardadopted a written charter for the compensation committee which is available on Complete Solaria’s website.

Nominatingand Corporate Governance Committee

The nominating and corporategovernance committee consists of Thurman J. Rodgers, who serves as the chairperson, and Adam Gishen. The responsibilities of the nominatingand corporate governance committee are: