Company: SUNE
Filing Date: 2025-04-22
Form Type: S-3
Source: 0001213900-25-033892
Chunk: 10

Company: SUNation Energy, Inc.
Filing Date: 2025-04-22
Form: S-3
Chunk 10
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, among
other things, the establishment of dividends that must be paid prior to declaring or paying dividends or other distributions to holders
of our common stock or providing for preferential liquidation rights. These rights, preferences and privileges could negatively affect
the rights of holders of our common stock, and the right to convert such preferred stock into shares of our common stock at a rate or
price that would have a dilutive effect on the outstanding shares of our common stock.

We may issue additional common stock resulting in stock ownership dilution.

As of April 21, 2025, we had 3,364,000 shares of
common stock outstanding (excluding exercise of any remaining outstanding warrants) and there were one additional share reserved for issuance
upon the settlement of outstanding restricted stock units, 62 shares available for grant under the 2022 Equity Incentive Plan, and two
shares available for issuance under the 2022 Employee Stock Purchase Plan.

Additionally, our Series A Warrants contain exercise
price adjustments, which, if triggered, may cause substantial dilution. If the market price is less than the exercise price of the Series
A Warrants, then the exercise price of the warrants will be reduced to the market price and the number of shares issuable upon exercise
will be proportionately adjusted such that the aggregate price will remain unchanged, provided, however, the adjusted exercise price shall
not be less than the Nasdaq compliant floor price set forth therein. In addition, if, while the common warrants are outstanding, we issue
or sell, or are deemed to have issued or sold, any common stock and/or common stock equivalents other than in connection with certain
exempt issuances, at a purchase price per share less than the exercise price of the common warrants in effect immediately prior to such
issuance or sale or deemed issuance or sale, then simultaneously with the consummation (or, if earlier, the announcement) of each such
issuance or sale or deemed issuance or sale, the exercise price of the common warrants then in effect will be reduced to an amount equal
to the new issuance price, and the number of shares issuable upon exercise will be proportionately adjusted such that the aggregate price
will remain unchanged, provided that, the adjusted exercise price shall not be less than twenty percent of the “Minimum Price”
under Nasdaq rules (subject to adjustment for reverse and forward stock splits, recapitalizations and similar transactions following the
Issue Date). As of April 21, 2025