Company: SUNE
Filing Date: 2025-02-27
Form Type: 424B5
Source: 0001213900-25-017771
Chunk: 24

Company: SUNation Energy, Inc.
Filing Date: 2025-02-27
Form: 424B5
Chunk 24
---
 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.

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

The agreements governing
our indebtedness 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. |

These 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 this 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 unfavorable to us. Our ability to make payments on
and refinance our debt and other financial obligations and to fund our capital expenditures and acquisitions will depend on our ability
to generate substantial operating cash flow. This will depend on our future performance, which will be subject to prevailing economic
conditions and to financial, business and other factors beyond our control.

In addition, our debt
obligations require us to repay or refinance our obligations when they come due. If our cash flows were to prove inadequate to meet our
debt service, rental and other obligations in the future, we may be required to refinance all or a portion of our existing or future debt,
on or before maturity, to sell assets or to obtain additional financing. We cannot give assurance that we will be able to refinance any
of our indebtedness, sell any such assets, or obtain additional financing on commercially reasonable terms or at all.

<div align='center'>S-9

USE OF PROCEEDS</div>

We estimate that the net proceeds to us from the
first closing of this offering will be $13.5 million after deducting placement agent fees and other estimated offering expenses payable
by us for related to such