Company: SUNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0000022701-25-000002
Chunk: 44

Company: SUNation Energy, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 8
Chunk 44
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332 and $16,047 for the years ended December 31, 2024 and 2023, respectively. Promissory Note Through the SUNation Acquisition, the Company acquired a promissory note with a former shareholder and member of SUNation through a buyout agreement. The promissory note includes monthly payments of principal and interest at an annual rate of 3.25%. The promissory note matures on March 1, 2031. The balance for the promissory note recorded at December 31, 2024 and 2023 was $1,409,313 and $1,656,416, respectively. Interest expense was $50,174 and $58,030 for the years ended December 31, 2024 and 2023, respectively. Future Minimum Principal Payments Future minimum principal payments under the aforementioned loans and notes for the next five years as of December 31, 2024 are as follows:         2025 $ 9,691,4552026   2,776,9292027   3,877,6652028   318,9352029   305,149Thereafter   46,014 

 74

 The above table does not reflect the debt payoffs that took place subsequent to year end. See Note 17, Subsequent Events, for further discussion. Other Contingencies In the ordinary course of business, the Company is exposed to legal actions and claims and incurs costs to defend against these actions and claims. Company management is not aware of any outstanding or pending legal actions or claims that could materially affect the Company’s financial position or results of operations. We have accrued $1,300,000 for loss contingencies related to the PIPE Warrants that are payable in cash and stock in 2025. This liability is recorded within accrued loss contingencies in the Consolidated Balance Sheets at December 31, 2024. See Note 17, Subsequent Events related to the satisfaction of the liability through the payment of cash and issuance of stock subsequent to December 31, 2024.  NOTE 10 – RELATED PARTY TRANSACTIONS Related party receivables The Company has provided advances to employees resulting in a balance as of December 31, 2024 and 2023 of $23,471 and $46,448, respectively. Leases The Company leases its offices in Hawaii from a company owned by the prior owner of HEC, of whom is still an employee. The Company leased its