Company: SUNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0000022701-25-000002
Chunk: 53

Company: SUNation Energy, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 8
Chunk 53
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 79

 Deferred tax assets and liabilities as of December 31 related to the following:               2024  2023Deferred tax assets:     Allowance for doubtful accounts$ 62,747 $ 24,266Inventory  98,271   32,768Accrued and prepaid expenses  287,495   131,692Lease liability  988,437   1,183,679Domestic net operating loss carry-forward  6,018,361   5,308,336Other stock compensation  72,613   214,248Intangible assets  —   214,600Foreign net operating loss carry-forwards and credits  1,910,507   1,451,985Federal and state credits  369,839   357,430Business interest limitation carryforward  1,696,118   914,917Other  15,961   464,019      Gross deferred tax assets  11,520,349   10,297,940Valuation allowance  (10,248,132)   (8,970,982)      Net deferred tax assets   1,272,217   1,326,958      Deferred tax liabilities     Depreciation  (109,390)   (203,210)Intangible assets  (202,202)   —Lease right-of-use asset  (960,625)   (1,165,327)      Net deferred tax liability  (1,272,217)   (1,368,537)      Total net deferred tax liability$ — $ (41,579)       The Company assesses available positive and negative evidence to estimate if sufficient future taxable income will be generated to use the existing deferred tax assets. A significant piece of objective negative evidence evaluated was the cumulative loss incurred over the three-year period ended December 31, 2024. This objective evidence limits the ability to consider other subjective evidence such as the projections for future growth. On the basis of this evaluation, as of December 31, 2024, a valuation allowance of $10,248,132 has been recorded to reflect the portion of the deferred tax asset that is more likely to not be realized. The valuation allowance increased by $1,277,150 from December 31, 2023 to December 31, 2024.  The Company continues to reassess the ability to