Company: SUNE
Filing Date: 2025-03-14
Form Type: 8-K
Source: 0001213900-25-023805
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Company: SUNation Energy, Inc.
Filing Date: 2025-03-14
Form: 8-K
Item: Item 1.02
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Item 1.02 Termination of a Material Definitive
Agreement

Decathlon
Fixed Loan Repayment and Termination

On June 1, 2023, the Company entered into
a Revenue Loan and Security Agreement (the “ Loan Agreement”) with Decathlon Specialty Finance, LLC (“ Decathlon”).
The Loan Agreement provided for a loan facility for the Company in the maximum amount of $7.5 million with an original maturity date of
June 1, 2027. The Decathlon Loan Agreement was repayable in fixed monthly payments to the maturity date with $2,580,000 payable in 2025,
$2,760,000 payable in 2026 and $3,480,000 payable in 2027 to the maturity date. As of March 3, 2025, the remaining aggregate balance,
together with accrued principal and interest, remaining under this Loan agreement was $6,740,516; however, the parties to the Loan Agreement
recently agreed to a reduced aggregate repayment amount of $6,229,875 if voluntarily repaid early in full.

As previously disclosed, on February 27, 2025,
SUNation Energy, Inc. (the “ Company”) consummated the first tranche of a securities offering for gross proceeds of $15 million
(the “ Equity Financing”). Using a portion of the proceeds from the Equity Offering, the Company voluntarily repaid in full
all of the accrued principal and interest due to Decathlon in the reduced aggregate noted above. As a result of this complete repayment,
the Decathlon Loan Agreement has been terminated (together with other agreements and instruments related thereto), and no further monthly
or other payments or remuneration of any kind shall be paid or be payable following the termination of this Loan Agreement, and no early
termination penalties or prepayment premium were incurred by the Company in connection with the termination of this Laon Agreement.

Hercules
Loan Repayment and Termination

The Company entered into a loan agreement
on December 11, 2020 in an original amount of $7,500,000 payable to Hercules Capital, Inc. (“ Hercules”) under a loan and security
agreement (the “ Term Loan Agreement”), with an amended Maturity Date of June 2, 2027. On July 22, 2024, the Term Loan Agreement
was further amended (the “ Third Amendment”), primarily for the purpose of obtaining consent for the bridge loan financing
from