Electriq Power’s Inventory Auctioned Off for $4.9M

In the unfolding bankruptcy of Electriq Power Inc., a company that put solar panels on Santa Barbara rooftops for free, a sale of the company’s inventory stored in a San Leandro warehouse netted $4.9 million, excluding litigation claims, bankruptcy trustee Robert Furr said in an email this week. The sale represents about seven cents on the dollar given that the original bankruptcy filing on May 3 indicated Electriq’s creditors were owed about $70 million.

In order to ensure they were paid, one of those creditors, Axiom360 of Grover Beach, filed mechanics liens against some of the homeowners who received the free solar installation. Brandon Hoffman, CEO of Axiom, said he had no update to change the lien situation, but his “legal team is actively working toward resolving this without impacting our community.”

On July 12 and 18, at the direction of the Southern Florida Bankruptcy Court, where this case is filed, Furr sent about 480 Electriq customers an email explaining that he had received numerous requests for help. He could not operate the business, help with mechanics liens, or get their solar-power system running, Furr wrote. “What I can do is pay you damages if you have a valid claim, as long as you file a Proof of Claim with the Bankruptcy Court” by August 9, 2024.

Furr also noted the auction on July 8 and more in the email, “Recently, I entered into an agreement with a buyer to purchase all the hard assets and intellectual property of these [sic] company. This buyer is well capitalized and intends to restart the business in some way. I am hopeful that they will want to work with you. When I know more about that, I will let you all know.”

The email also provided a link to the Southern Florida Bankruptcy Court’s “how to” page on filing a Proof of Claim electronically — flsb.uscourts.gov/file-proof-claim-electronically — but a quick look at that page reveals a bewildering set of instructions. For those who want to give it a try, the case number is 9:24-bk-15235, and the case name is In Re: Electriq Power, Inc., though Furr recommended an attorney be consulted in assisting in the preparation of the claim. In an email to the Independent, he wrote, “I would advise that anyone who feels they have a claim should protect themselves and file one. If they don’t, they don’t have a chance to recover.”

He also noted, “The buyer intends to restart the business, [which] we hope will rectify issues with the customers.” Furr did not state who had bought Electriq.