Company: SUNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0000022701-25-000002
Chunk: 55

Company: SUNation Energy, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 8
Chunk 55
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           2024 2023Uncertain tax positions – January 1 $ 43,028 $ 75,347Expiration of statute of limitations   (7,560)   (32,319)Uncertain tax positions – December 31 $ 35,468 $ 43,028 Included in the balance of uncertain tax positions at December 31, 2024 are $35,468 of tax benefits that if recognized would affect the tax rate. The Company’s unrecognized tax benefits will be reduced by $2,803 in the next twelve months as a result of the statute of limitations. There are no other expected significant changes in the Company’s uncertain tax positions in the next twelve months. The Company’s income tax liability accounts included accruals for interest and penalties of $0 at December 31, 2024. The Company’s 2024 income tax expense decreased by $0 due to net decreases for accrued interest and penalties. The Company is subject to taxation by the United States, foreign and state and local jurisdictions.  In general, the Company’s tax years 2019 through 2023 remain open to assessment. NOTE 14 – SEGMENT INFORMATION The Company’s segment structure reflects how management makes financial decisions and allocates resources. The Company manages its operations based on the combined results of the residential and commercial businesses with a geographical focus. The SUNation segment provides solar power, battery storage, and related services to customers primarily in New York and Florida. The Hawaii Energy Connection (“HEC”) segment provides the same products and services to residential and commercial customers in Hawaii. The Company’s CODM is represented by a committee that includes the Company’s CEO, CFO, and COO. The CODM regularly reviews discrete financial information for SUNation and HEC in deciding how to allocate resources and in assessing performance. Corporate and other represents the unallocated corporate business activities and corporate shared services, which support the Company’s operating segments, along with operating and other expenses related to legacy CSI assets. During 2024 management determined that their two operating segments no longer met the criteria to be aggregated into one reportable segment due to changes in economic forecasts and the Company’s plans for integrating SUNation and HEC. As a result, management determined HEC and SUNation to be distinct reportable segments. Prior period amounts have been recast for comparative purposes to reflect this change, which had no impact on the Company’s consolidated financial position, results of operations, and cash flows. The accounting policies of the segments are the same as those applied in