Company: SUNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0000022701-25-000002
Chunk: 30

Company: SUNation Energy, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 8
Chunk 30
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4. These remaining leases have remaining lease terms of 2 to 11 years.  One lease includes a 3% rent adjustment on each anniversary of the lease, another includes a fixed annual rent adjustment of $6,840, and the other a 4% annual rent adjustment. As of December 31, 2024, total ROU assets and operating lease liabilities were $3,686,747 and $3,793,483, respectively. All operating lease expense is recognized on a straight-line basis over the lease term. In the years ended December 31, 2024 and 2023, the Company recognized $696,141 and $718,441 in lease expense, respectively.  Information related to the Company’s ROU assets and related lease liabilities were as follows:                  Year Ended December 31  2024 2023Cash paid for operating leases $ 651,531 $ 662,561Right-of-use assets obtained in exchange for new operating lease obligations $ — $ 753,972         As of December 31  2024 2023Weighted-average remaining lease term  9.4 years  9.6 yearsWeighted-average discount rate   6.8%  7.0%         Maturities of lease liabilities as of December 31, 2024 were as follows:          

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2025 $ 556,6232026   526,5572027   515,8012028   525,1272029   534,527Thereafter   2,516,013Total lease payments   5,174,648Less imputed interest   (1,381,165)Total operating lease liabilities $ 3,793,483     NOTE 6 – DISCONTINUED OPERATIONS On June 30, 2023, the Company sold substantially all of the assets of its legacy non-core subsidiaries, JDL and Ecessa, to TheIPGuys.net LLC doing business as OneNet Global for total net proceeds of $1,231,616. The Company received net initial proceeds of $1,106,616, consisting of $1,175,000 in initial consideration less $68,384 in adjustments. An additional $125,000 in consideration previously held in escrow was paid in 2024. The Company recorded a loss on sale of $1,190,002 during the second quarter of 2023. The presentation of discontinued operations with respect