8-K: Capstone Green Energy Appoints John Miller to Board of Directors

Capstone Green Energy announced the appointment of John Miller to its Board of Directors, effective immediately.

Summary

• Capstone Green Energy Holdings, Inc. has appointed John Miller to its Board of Directors, effective February 26, 2024.
• Mr. Miller will also serve on the Board's Audit Committee and Governance and Sustainability Committee.
• The Board expanded to six members in connection with Mr. Miller's appointment.
• Mr. Miller brings over 40 years of executive management experience in manufacturing, distribution, and transportation.
• He previously served as CEO of Power Solutions International, Inc. and held senior positions at Navistar International Corporation.
• Mr. Miller will receive compensation consistent with other non-executive directors and was granted 10,000 restricted stock units vesting in one year.
• The company is working to complete its restatement of previously issued financial statements and expects to list its common stock on the OTC Pink Market following completion.

Sentiment

Score: 7

Explanation: The announcement is generally positive due to the appointment of an experienced director and the company's reported energy and carbon savings. However, the ongoing restatement and OTC listing introduce some uncertainty.

Positives

• The appointment of John Miller brings significant executive management experience to Capstone's board.
• Mr. Miller's background includes leadership roles at Power Solutions International and Navistar International Corporation.
• His expertise is expected to drive strategic growth and operational efficiencies.
• Capstone estimates that in FY23, it saved customers over $169 million in annual energy costs and approximately 362,000 tons of carbon.
• Total savings over the last five years are estimated to be approximately $1.08 billion in energy savings and approximately 1.9 million tons of carbon savings.

Risks

• The company is still working to complete its restatement of previously issued financial statements.
• The company's common stock is expected to be listed on the OTC Pink Market following the completion of the restatement.
• The release contains forward-looking statements that are subject to risks, uncertainties, and other factors.

Future Outlook

The company expects to complete the restatement of previously issued financial statements and list its common stock on the OTC Pink Market.

Management Comments

• Robert Flexon stated that John Miller's industry experience and strategic insights will be instrumental in driving sustainable growth.
• John Miller is excited to help shape and design a successful future for the Company.
• Robert Powelson commented that John brings a much-needed skill set to the Board, and we are excited to have him join us as we navigate the Company forward post-restructuring.

Industry Context

The appointment of John Miller, with his experience in the energy sector, aligns with Capstone's focus on clean energy and microturbine technology, potentially strengthening its position in the market.

Comparison to Industry Standards

• John Miller's previous role as CEO of Power Solutions International, Inc. provides him with experience directly comparable to Capstone's business.
• His experience at Navistar International Corporation, a global vehicle manufacturer, is relevant to Capstone's focus on energy solutions for various industries.
• Capstone's estimated savings of $169 million in annual energy costs for customers in FY23 is a significant achievement compared to other companies in the energy efficiency sector.

Management Changes

Corporate Governance

Stakeholder Impact

• Shareholders may view the appointment positively due to the added expertise on the board.
• The company's commitment to sustainability and energy savings benefits customers and the environment.

Next Steps

• Complete the restatement of previously issued financial statements.
• List common stock on the OTC Pink Market.

Key Dates