Company: SUNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0000022701-25-000002
Chunk: 56

Company: SUNation Energy, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 8
Chunk 56
---
 the consolidated financial statements as disclosed in Note 2, Summary of Significant Accounting Policies. The CODM committee evaluates performance for both reportable segments based on segment revenue, gross profit, and operating (loss) income before income taxes. When using these metrics, the CODM committee considers forecast-to-actual variances on a quarterly basis when making decisions about the allocation of operating and capital resources to each segment. The CODM committee also uses these metrics for evaluating pricing strategy to assess the performance of each segment by comparing the results of each segment with one another and in determining the compensation of certain employees. The Company had no customers that comprised more than 10% of the Company's consolidated revenues during either of the years ended December 31, 2024 and 2023.  Summarized financial information for the Company’s reportable segments are presented and reconciled to consolidated financial information in the following tables, including a reconciliation of segment earnings to income before income taxes. This reconciliation also represents the significant expense categories reviewed by the CODM.   

 81

                            Year ended December 31, 2024      Corporate and    SUNation HEC Other Total             Sales $ 39,733,362 $ 17,128,391 $ — $ 56,861,753Cost of sales   24,639,695   11,795,814   —   36,435,509Gross profit   15,093,667   5,332,577   —   20,426,244             Operating expenses:            Selling, general and administrative expenses   15,265,443   4,530,879   7,257,844   27,054,166Amortization expense   812,500   2,025,000   —   2,837,500Fair value remeasurement of SUNation earnout consideration   —   —   (1,000,000)   (1,000,000)Goodwill impairment loss      3,101,981      3,101,981Intangible asset impairment loss   —   750,000   —   750,000Total operating expenses   16,077,943   10,407,860   6,257,844   32,743,647Operating (loss) income   (984,276)   (5,075,283)   (6,257,844)   (12,317,403)Other income (expenses):