Company: SUNE
Filing Date: 2025-08-18
Form Type: 424B5
Source: 0001213900-25-078001
Chunk: 38

Company: SUNation Energy, Inc.
Filing Date: 2025-08-18
Form: 424B5
Chunk 38
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 ability to recover your investment in the common stock.

We have a substantial amount of indebtedness, which
requires significant interest payments. Our substantial level of indebtedness and the current constraints on our liquidity could have
important consequences, including the following:

| ● | we must use a substantial portion of our cash flow from operations to pay interest and principal on our indebtedness, which reduces or will reduce funds available to us for other purposes such as working capital, capital expenditures, other general corporate purposes and potential acquisitions; |
| ● | our ability to refinance such indebtedness or to obtain additional financing for working capital, capital expenditures, acquisitions or general corporate purposes may be impaired;                                                                                                                     |

| ● | our leverage may be greater than that of some of our competitors, which may put us at a competitive disadvantage and reduce our flexibility in responding to current and changing industry and financial market conditions; and |

| ● | we may be more 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