Company: SUNE
Filing Date: 2025-04-07
Form Type: 424B5
Source: 0001213900-25-029179
Chunk: 21

Company: SUNation Energy, Inc.
Filing Date: 2025-04-07
Form: 424B5
Chunk 21
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 in the common stock.

We have a substantial
amount of indebtedness, which requires significant interest payments. Our substantial level of indebtedness and the current constraints
on our liquidity could have important consequences, including the following:

| ● | we must use a substantial portion of our cash flow from operations to pay interest and principal on our indebtedness, which reduces or will reduce funds available to us for other purposes such as working capital, capital expenditures, other general corporate purposes and potential acquisitions; |
| ● | our ability to refinance such indebtedness or to obtain additional financing for working capital, capital expenditures, acquisitions or general corporate purposes may be impaired;                                                                                                                     |

| ● | our leverage may be greater than that of some of our competitors, which may put us at a competitive disadvantage and reduce our flexibility in responding to current and changing industry and financial market conditions; |

| ● | there are significant constraints on our ability to generate liquidity through incurring additional debt; and |

| ● | we may be more vulnerable to economic downturn and adverse developments in our business. |

<div align='center'>S-7</div>

We and our subsidiaries
may be able to incur substantial additional indebtedness in the future, subject to the restrictions contained in the agreements governing
our indebtedness. To the extent new indebtedness is added to our debt levels, including as a result of satisfying interest payment obligations
on certain of our indebtedness with payments-in-kind, the related risks that we now face could intensify. If we are unable to comply
with our covenants under our indebtedness, our liquidity may be further adversely affected.

Although we intend to
pay off or down a significant portion of our existing debt obligations for the proceeds generated by this offering, our ability to meet
our expenses, to remain in compliance with our covenants under our debt instruments and to make future principal and interest payments
in respect of our debt depends on, among other factors, our operating performance, competitive developments and financial market conditions,
all of which are significantly affected by financial, business, economic and other factors. We are not able to control many of these factors.
Given current industry and economic conditions, our cash flow may not be sufficient to allow us to pay principal and interest on our debt
and meet our other obligations.

The agreements governing our indebtedness contain covenants that may limit our ability to take advantage of certain business opportunities advantageous to us.

The agreements governing
our indebtedness contain various covenants that limit our ability to, among other things: