SUNation Energy, Inc.
For the period ended Dec 31, 2024. Filed Apr 15, 2025.
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FY2024 · Filed Apr 15, 2025
SUNE$2.03-1.0%Stored close · as of Nov 9, 2026
Extracted filing text, with the paragraph anchors used by the comparison.
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Item 8. CONSOLIDATED BALANCE SHEETS
| SUNATION ENERGY, INC. | ||
|---|---|---|
| CONSOLIDATED BALANCE SHEETS | ||
| ASSETS | ||
| December 31 | December 31 | |
| 2024 | 2023 | |
| CURRENT ASSETS: | ||
| Cash and cash equivalents | $839,268 | $3,575,283 |
| Restricted cash and cash equivalents | 312,080 | 1,821,060 |
| Trade accounts receivable, less allowance for | ||
| credit losses of $240,817 and $94,085, respectively | 4,881,094 | 5,010,818 |
| Inventories, net | 2,707,643 | 3,578,668 |
| Related party receivables | 23,471 | 46,448 |
| Prepaid expenses | 1,587,464 | 1,313,082 |
| Costs and estimated earnings in excess of billings | 560,648 | 57,241 |
| Other current assets | 198,717 | 376,048 |
| TOTAL CURRENT ASSETS | 11,110,385 | 15,778,648 |
| PROPERTY, PLANT AND EQUIPMENT, net | 1,238,898 | 1,511,878 |
| OTHER ASSETS: | ||
| Goodwill | 17,443,869 | 20,545,850 |
| Right of use assets | 3,686,747 | 4,516,102 |
| Intangible assets, net | 12,220,833 | 15,808,333 |
| Other assets | 12,000 | 12,000 |
| TOTAL OTHER ASSETS | 33,363,449 | 40,882,285 |
| TOTAL ASSETS | $45,712,732 | $58,172,811 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| CURRENT LIABILITIES: | ||
| Accounts payable | $8,032,769 | $7,677,261 |
| Accrued compensation and benefits | 796,815 | 1,360,148 |
| Operating lease liabilities | 321,860 | 394,042 |
| Accrued warranty | 350,013 | 268,004 |
| Other current liabilities | 1,055,995 | 867,727 |
| Accrued loss contingencies | 1,300,000 | — |
| Income taxes payable | 5,071 | 5,373 |
| Refundable customer deposits | 1,870,173 | 2,112,363 |
| Billings in excess of costs and estimated earnings | 444,310 | 440,089 |
| Contingent value rights | 312,080 | 1,691,072 |
| Earnout consideration | 2,500,000 | 2,500,000 |
| Current portion of loans payable | 3,139,113 | 1,654,881 |
| Current portion of loans payable - related party | 6,951,563 | 3,402,522 |
| Embedded derivative liability | 82,281 | — |
| TOTAL CURRENT LIABILITIES | 27,162,043 | 22,373,482 |
| LONG TERM LIABILITIES: | ||
| Loans payable and related interest | 6,531,650 | 8,030,562 |
| Loans payable and related interest - related party | — | 2,097,194 |
| Deferred income taxes | — | 41,579 |
| Operating lease liabilities | 3,471,623 | 4,193,205 |
| Earnout consideration | — | 1,000,000 |
| TOTAL LONG-TERM LIABILITIES | 10,003,273 | 15,362,540 |
| COMMITMENTS AND CONTINGENCIES (Note 9) | ||
| STOCKHOLDERS' EQUITY | ||
| Series A Convertible preferred stock, par value $1.00 per share; 3,000,000 shares authorized; no and 28,000 shares issued and outstanding, respectively | — | 28,000 |
| Series B preferred stock, par value $1.00 per share; 3,000,000 shares authorized; no shares issued and outstanding, respectively | — | — |
|---|---|---|
| Series C preferred stock, par value $1.00 per share; 35,000 shares authorized; no shares issued and outstanding, respectively | — | — |
| Common stock, par value $0.05 per share; 25,000,000 shares authorized; | ||
| 1,868,638 and 13,663 shares issued and outstanding, respectively(1) | 93,432 | 683 |
| Additional paid-in capital(1) | 51,353,030 | 47,489,517 |
| Accumulated deficit | (42,899,046) | (27,081,411) |
| TOTAL STOCKHOLDERS' EQUITY (DEFICIT) | 8,547,416 | 20,436,789 |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $45,712,732 | $58,172,811 |
| (1) Prior period results have been adjusted to reflect the reverse stock split of the common stock at a ratio of 1-for-50 that became effective October 17, 2024 and the reverse stock split of the common stock at a ratio of 1-for-15 that became effective June 12, 2024. See Note 1, "Nature of Operations," for further details. | ||
| The accompanying notes are an integral part of the consolidated financial statements. | ||
`
| SUNATION ENERGY, INC. | ||
|---|---|---|
| CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS | ||
| Year Ended December 31 | ||
| 2024 | 2023 | |
| Sales | $56,861,753 | $79,632,709 |
| Cost of sales | 36,435,509 | 51,936,519 |
| Gross profit | 20,426,244 | 27,696,190 |
| Operating expenses: | ||
| Selling, general and administrative expenses | 27,054,166 | 29,074,578 |
| Amortization expense | 2,837,500 | 4,738,477 |
| Fair value remeasurement of SUNation earnout consideration | (1,000,000) | 1,350,000 |
| Goodwill impairment loss | 3,101,981 | — |
| Intangible asset impairment loss | 750,000 | — |
| Total operating expenses | 32,743,647 | 35,163,055 |
| Operating loss from continuing operations | (12,317,403) | (7,466,865) |
| Other (expense) income: | ||
| Investment and other income | 144,529 | 191,584 |
| (Loss) gain on sale of assets | (822) | 437,116 |
| Fair value remeasurement of warrant liability | (974,823) | — |
| Fair value remeasurement of embedded derivative liability | (65,617) | — |
| Fair value remeasurement of contingent value rights | 522,257 | 2,674,966 |
| Interest expense | (3,087,450) | (2,657,517) |
| Loss on debt extinguishment | (35,657) | — |
| Other (expense) income, net | (3,497,583) | 646,149 |
| Operating loss from continuing operations before income taxes | (15,814,986) | (6,820,716) |
| Income tax expense | 34,819 | 119,176 |
| Net loss from continuing operations | (15,849,805) | (6,939,892) |
| Net loss from discontinued operations, net of tax | — | (1,192,275) |
| Net loss | (15,849,805) | (8,132,167) |
| Other comprehensive income (loss), net of tax: | ||
| Unrealized gains (losses) on available-for-sale securities | — | 10,422 |
| Total other comprehensive income (loss) | — | 10,422 |
| Comprehensive loss | $(15,849,805) | $(8,121,745) |
| Less: Deemed dividend on extinguishment of Convertible Preferred Stock | (4,215,551) | — |
| Less: Deemed dividend on modification of PIPE Warrants | (11,447,251) | — |
| Less: Deemed contribution on exchange of equity instruments | 4,075,681 | — |
| Net loss attributable to common shareholders | $(27,436,926) | $(8,132,167) |
| Basic net loss per share(1): | ||
| Continuing operations | $(50.58) | $(521.89) |
| Discontinued operations | — | (89.66) |
| $(50.58) | $(611.55) | |
| Diluted net loss per share(1): | ||
| Continuing operations | $(50.58) | $(521.89) |
| Discontinued operations | — | (89.66) |
| $(50.58) | $(611.55) | |
| Weighted Average Basic Shares Outstanding(1) | 542,454 | 13,298 |
| Weighted Average Dilutive Shares Outstanding(1) | 542,454 | 13,298 |
(1) Prior period results have been adjusted to reflect the reverse stock split of the common stock at a ratio of 1-for-50 that became effective October 17, 2024 and the reverse stock split of the common stock at a ratio of 1-for-15 that became effective June 12, 2024. See Note 1, "Nature of Operations," for further details.
The accompanying notes are an integral part of the consolidated financial statements.
| SUNATION ENERGY, INC. | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY | |||||||||||||||
| Accumulated | |||||||||||||||
| Redeemable Convertible · Series A Convertible · Series B · Series C · Additional · Other | |||||||||||||||
| Preferred Stock · Preferred Stock · Preferred Stock · Preferred Stock · Common Stock · Paid-in · Accumulated · Comprehensive | |||||||||||||||
| Shares · Amount · Shares · Amount · Shares · Amount · Shares · Amount · Shares(1) · Amount(1) · Capital(1) · Deficit · Income (Loss) · Total | |||||||||||||||
| BALANCE AT DECEMBER 31, 2022 | — | $— | 28,000 | $28,000 | — | $— | — | $— | 13,221 | $ | 661 | $46,293,187 | $(19,089,134) | $(10,422) | $27,222,292 |
| Net loss | — | — | — | — | — | — | — | — | — | — | — | (8,132,167) | — | (8,132,167) | |
| Issuance of common stock under Employee Stock Purchase Plan | — | — | — | — | — | — | — | — | 113 | 6 | 125,392 | — | — | 125,398 | |
| Issuance of common stock under Equity Incentive Plan | — | — | — | — | — | — | — | — | 380 | 19 | (19) | — | — | — | |
| Gain on extinguishment of related party debt | — | — | — | — | — | — | — | — | — | — | 36,291 | — | — | 36,291 | |
| Share based compensation | — | — | — | — | — | — | — | — | — | — | 1,212,956 | — | — | 1,212,956 | |
| Other share retirements | — | — | — | — | — | — | — | — | (51) | (3) | (178,290) | 139,890 | — | (38,403) | |
| Other comprehensive loss | — | — | — | — | — | — | — | — | — | — | — | — | 10,422 | 10,422 | |
| BALANCE AT DECEMBER 31, 2023 | — | $— | 28,000 | $28,000 | — | $— | — | $— | 13,663 | $683 | $47,489,517 | $(27,081,411) | $— | 20,436,789 | |
| Net loss | — | — | — | — | — | — | — | — | — | — | — | (15,849,805) | — | (15,849,805) | |
| Issuance of common stock under Employee Stock Purchase Plan | — | — | — | — | — | — | — | — | 153 | 8 | 9,764 | — | — | 9,772 | |
| Issuance of common stock under Equity Incentive Plan | — | — | — | — | — | — | — | — | 391 | 20 | (20) | — | — | — | |
| Issuance of common stock under registered direct offering, net of issuance costs | — | — | — | — | — | — | — | — | 3,604 | 180 | 918,808 | — | — | 918,988 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Issuance of Series B Preferred Stock | — | — | — | — | 1 | 1 | — | — | — | — | 14 | — | — | 15 | ||
| Cancellation of Series B Preferred Stock | — | — | — | — | (1) | (1) | — | — | — | — | — | — | — | (1) | ||
| Issuance of common stock under PIPE Warrant exercise | — | — | — | — | — | — | — | — | 16,545 | 827 | 323,963 | 324,790 | ||||
| Reclassification of Series A Preferred Stock to temporary equity | 28,000 | 30,968,875 | (28,000) | (28,000) | — | — | — | — | — | — | (30,940,875) | — | — | (30,968,875) | ||
| Deemed dividend on extinguishment of Convertible Preferred Stock | — | 751,125 | — | — | — | — | — | — | — | — | (751,125) | — | — | (751,125) | ||
| Reclassification of PIPE Warrants to liabilities | — | — | — | — | — | — | — | — | — | — | (10,592,220) | — | — | (10,592,220) | ||
| Conversion of Redeemable Convertible Preferred Stock to Common Stock | (13,485) | (15,277,055) | — | — | — | — | — | — | 126,098 | 6,305 | 15,270,750 | — | — | 15,277,055 | ||
| Conversion of Series A Convertible Preferred Stock to Common Stock | — | — | (1,490) | (1,490) | — | — | — | — | 14,195 | 710 | 780 | — | — | — | ||
| Reclassification of temporary equity to Series A Preferred Stock | (14,515) | (16,442,945) | 14,515 | 14,515 | — | — | — | — | — | — | — | — | 16,428,430 | — | — | 16,442,945 |
| Reclassification of PIPE Warrants to equity | — | — | — | — | — | — | — | — | — | — | — | — | 11,242,257 | — | — | 11,242,257 |
| Exchange of Series A Preferred Stock and PIPE Warrants to Series C Preferred Stock | — | — | (13,025) | (13,025) | — | — | 28,041 | 28,041 | — | — | (15,016) | — | — | — |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Issuance costs on exchange of Series A Preferred Stock and PIPE Warrants to Series C Preferred Stock | — | — | — | — | — | — | — | — | — | — | (156,524) | — | — | (156,524) |
| Conversion of Series C Preferred Stock to Common Stock | — | — | — | — | — | — | (28,041) | (28,041) | 1,246,262 | 62,313 | (34,272) | — | — | — |
| Issuance of Common Stock on At-the-Market sales, net of issuance costs | — | — | — | — | — | — | — | — | 448,216 | 22,410 | 2,171,063 | 2,193,473 | ||
| Cash in lieu payment on fractional shares under reverse stock split | — | — | — | — | — | — | — | — | (387) | (19) | (3,003) | — | — | (3,022) |
| Share based compensation | — | — | — | — | — | — | — | — | — | — | 29,002 | — | — | 29,002 |
| Other share retirements | — | — | — | — | — | — | — | — | (102) | (5) | (38,263) | 32,170 | — | (6,098) |
| BALANCE AT DECEMBER 31, 2024 | — | $— | — | $— | — | $— | — | $— | 1,868,638 | $93,432 | $51,353,030 | $(42,899,046) | $— | $8,547,416 |
| (1) Prior period results have been adjusted to reflect the reverse stock split of the common stock at a ratio of 1-for-50 that became effective October 17, 2024 and the reverse stock split of the common stock at a ratio of 1-for-15 that became effective June 12, 2024. See Note 1, "Nature of Operations," for further details. | ||||||||||||||
| The accompanying notes are an integral part of the consolidated financial statements. | ||||||||||||||
| SUNATION ENERGY, INC. | ||
|---|---|---|
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
| Year Ended December 31 | ||
| 2024 | 2023 | |
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||
| Net loss | $(15,849,805) | $(8,132,167) |
| Net loss from discontinued operations, net of tax | — | (1,192,275) |
| Net loss from continuing operations | (15,849,805) | (6,939,892) |
| Adjustments to reconcile net loss to | ||
| net cash (used in) provided by operating activities: | ||
| Depreciation and amortization | 3,153,832 | 5,136,420 |
| Share based compensation | 29,002 | 1,212,956 |
| Deferred taxes | (41,579) | 41,579 |
| Goodwill impairment loss | 3,101,981 | — |
| Intangible asset impairment loss | 750,000 | — |
| Credit loss provision | 146,732 | — |
| Fair value remeasurement of earnout consideration | (1,000,000) | 1,350,000 |
| Fair value remeasurement of warrant liability | 974,823 | — |
| Fair value remeasurement of embedded derivative liability | 65,617 | — |
| Fair value remeasurement of contingent value rights | (522,257) | (2,674,966) |
| Loss on extinguishment of debt | 35,657 | — |
| Gain on sale of assets | 822 | (437,116) |
| Loss on lease termination | 215,415 | — |
| Interest and accretion expense | 3,087,449 | 2,657,517 |
| Changes in assets and liabilities: | ||
| Trade and related party accounts receivables | 5,969 | 623,975 |
| Inventories, net | 853,518 | 2,475,825 |
| Prepaid income taxes | (302) | 3,723 |
| Other assets | (635,892) | 3,333,146 |
| Accounts payable | 355,508 | 83,081 |
| Accrued compensation and benefits | (563,333) | 500,373 |
| Customer deposits | (242,190) | (2,172,766) |
| Other accrued liabilities | 1,430,109 | (4,494,247) |
| Accrued interest | (1,653,762) | (1,085,174) |
| Net cash used in operating activities - continuing operations | (6,302,686) | (385,566) |
| Net cash used in operating activities - discontinued operations | — | (281,611) |
| Net cash used in operating activities | (6,302,686) | (667,177) |
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||
| Capital expenditures | (32,785) | (655,691) |
| Proceeds from the sale of fixed assets | 6,118 | 450 |
| Proceeds from the sale of investments | — | 2,869,584 |
| Proceeds from earnout consideration payments | — | 250,000 |
| Net cash provided by (used in) investing activities - continuing operations | (26,667) | 2,464,343 |
| Net cash provided by investing activities - discontinued operations | — | 1,102,935 |
| Net cash (used in) provided by investing activities | (26,667) | 3,567,278 |
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||
| Proceeds from loans payable | 1,604,000 | 7,814,844 |
| Payments against loans payable | (1,595,364) | (7,277,334) |
| Payments related to debt issuance costs | (24,150) | (348,065) |
| Payments related to equity issuance costs | (501,414) | — |
| Proceeds from the issuance of common stock under registered direct offering | 1,000,000 | — |
| Proceeds from the issuance of common stock under at-the-market offering | 2,457,352 | — |
| Proceeds from the issuance of Series B preferred stock | 15 | — |
| Payments for contingent value rights distributions | (856,736) | (3,036,676) |
| Proceeds from issuance of common stock, net of shares withheld | 9,775 | 125,398 |
|---|---|---|
| Cash in lieu payment on fractional shares under reverse stock split | (3,022) | — |
| Purchase of common stock | (6,098) | (38,403) |
| Net cash provided by (used in) financing activities | 2,084,358 | (2,760,236) |
| NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (4,244,995) | 139,865 |
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF YEAR | 5,396,343 | 5,256,478 |
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF YEAR | $1,151,348 | $5,396,343 |
| SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
| Income taxes paid | $76,700 | $58,858 |
| Interest paid | 1,604,100 | 1,119,480 |
| SUPPLEMENTAL DISCLOSURES OF NON-CASH ACTIVITIES: | ||
| Capital contribution on related party debt extinguishment | — | 36,291 |
| Loss on extinguishment of debt | (35,657) | — |
| Deemed dividend on Convertible Preferred Stock and PIPE Warrants | 11,587,121 | — |
| Conversion of redeemable convertible preferred stock to common stock | 15,277,055 | — |
| Operating right of use assets obtained in exchange for lease obligations | — | 753,972 |
| The accompanying notes are an integral part of the consolidated financial statements. | ||
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.