Company: SUNE
Filing Date: 2025-04-22
Form Type: S-3
Source: 0001213900-25-033892
Chunk: 13

Company: SUNation Energy, Inc.
Filing Date: 2025-04-22
Form: S-3
Chunk 13
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 vulnerable to economic downturn and adverse developments in our business. |

We and our subsidiaries may be able to incur substantial
additional indebtedness in the future, subject to the restrictions contained in the agreements governing our indebtedness. To the extent
new indebtedness is added to our debt levels, including as a result of satisfying interest payment obligations on certain of our indebtedness
with payments-in-kind, the related risks that we now face could intensify. If we are unable to comply with our covenants under our
indebtedness, our liquidity may be further adversely affected.

Although we intend to pay off or down a significant
portion of our existing debt obligations from the net proceeds generated by an offering, our ability to meet our expenses, to remain in
compliance with our covenants under our debt instruments and to make future principal and interest payments in respect of our debt depends
on, among other factors, our operating performance, competitive developments and financial market conditions, all of which are significantly
affected by financial, business, economic and other factors. We are not able to control many of these factors. Given current industry
and economic conditions, our cash flow may not be sufficient to allow us to pay principal and interest on our debt and meet our other
obligations.

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The agreements governing our indebtedness contain covenants that may limit our ability to take advantage of certain business opportunities advantageous to us.

Agreements governing our existing or future indebtedness
may contain various covenants that limit our ability to, among other things:

| ● | pay dividends or make other distributions to our stockholders; |

| ● | make restricted payments; |

| ● | incur liens; |

| ● | engage in transactions with affiliates; |

| ● | modify certain material contracts; and |

| ● | enter into business combinations without consent and/or approval. |

Such restrictions could limit our ability to obtain
future financing, make acquisitions, fund needed capital expenditures, withstand economic downturns in our business or the economy in
general, conduct operations or otherwise take advantage of business opportunities that may arise. At the same time, the covenants in the
instruments governing our indebtedness may not provide investors with protections against transactions they may deem undesirable.

If our cash flows or the net proceeds from an offering
prove inadequate to eliminate and/or service our debt and provide for our other obligations, we may be required to refinance all or a
portion of our existing debt or future debt at terms