# EDGAR Filing Document

**Accession Number:** 0001865506
**File Stem:** 0001213900-25-110368
**Filing Date:** 2025-11
**Character Count:** 141396
**Document Hash:** 695153bff19cb4cea385e873f5aeacdb
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001213900-25-110368.hdr.sgml**: 20251114

**ACCESSION NUMBER**: 0001213900-25-110368

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 84

**CONFORMED PERIOD OF REPORT**: 20250930

**FILED AS OF DATE**: 20251114

**DATE AS OF CHANGE**: 20251114

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Zeo Energy Corp.
- **CENTRAL INDEX KEY:** 0001865506
- **STANDARD INDUSTRIAL CLASSIFICATION:** CONSTRUCTION SPECIAL TRADE CONTRACTORS [1700]
- **ORGANIZATION NAME:** 05 Real Estate & Construction
- **EIN:** 981601409
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-40927
- **FILM NUMBER:** 251481333

**BUSINESS ADDRESS:**
- **STREET 1:** 5956 SHERRY LANE, SUITE 1400
- **CITY:** DALLAS
- **STATE:** TX
- **ZIP:** 75225
- **BUSINESS PHONE:** 214-987-6100

**MAIL ADDRESS:**
- **STREET 1:** 5956 SHERRY LANE, SUITE 1400
- **CITY:** DALLAS
- **STATE:** TX
- **ZIP:** 75225

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** ESGEN Acquisition Corp
- **DATE OF NAME CHANGE:** 20210602

?xml version='1.0' encoding='ASCII'?

**UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549**

**FORM 10-Q**

(Mark one)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2025

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________ to ____________

Commission File Number: 001-40927

**ZEO ENERGY CORP.**

(Exact name of registrant as specified in its charter)

---

| | |
|:---|:---|
| **Delaware** | **98-1601409** |
| (State or other jurisdiction of<br> incorporation or organization) | (IRS Employer<br> Identification No.) |

---

**7625 Little Rd, Suite 200A, New Port Richey, FL 34654**

(Address of principal executive offices and Zip Code)

**(727) 375-9375**

(Registrant's telephone number, including area code)

**Not Applicable**

(Former name or former address, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| **Class A Common Stock, par value $0.0001 per share** | **ZEO** | **The Nasdaq Stock Market LLC** |
| **Warrants, each exercisable for one share of Class A Common Stock at a price of $11.50, subject to adjustment** | **ZEOWW** | **The Nasdaq Stock Market LLC** |

---

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T(§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐ Accelerated filer ☐ <br> Non-accelerated filer ☒ Smaller reporting company ☒ <br> Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act): Yes ☐ No ☒

As of November 12, 2025, the registrant had 33,149,931 shares of Class A common stock, par value $0.0001 outstanding, and 24,380,000 shares of Class V common stock, par value $0.0001, outstanding.

**ZEO ENERGY CORP.**

**Quarterly Report on Form 10-Q**

**Period Ended September 30, 2025**

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
|  | **Page** |
| [**PART I – FINANCIAL INFORMATION**](#a_001) | 1 |
| [Item 1. Financial Statements](#a_002) | 1 |
| [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](#a_004) | 21 |
| [Item 3. Quantitative and Qualitative Disclosures about Market Risk](#a_005) | 31 |
| [Item 4. Control and Procedures](#a_006) | 31 |
| [**PART II – OTHER INFORMATION**](#a_007) | 32 |
| [Item 1. Legal Proceedings](#a_008) | 32 |
| [Item 1A. Risk Factors](#a_009) | 32 |
| [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](#a_010) | 32 |
| [Item 3. Defaults Upon Senior Securities](#a_011) | 32 |
| [Item 4. Mine Safety Disclosures](#a_012) | 32 |
| [Item 5. Other Information](#a_013) | 32 |
| [Item 6. Exhibits](#a_014) | 33 |
| [**SIGNATURES**](#a_015) | 34 |

---

i

**PART I**

**<u>FINANCIAL INFORMATION</u>**

**ITEM 1. FINANCIAL STATEMENTS.**

**ZEO ENERGY CORP.**

**UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

---

| | |
|:---|:---|
|  | **Page** |
| [Financial Statements (Unaudited)](#a_002) | 1 |
| [Condensed Consolidated Balance Sheets as of September 30, 2025 and December 31, 2024](#fin_001) | 2 |
| [Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2025 and 2024](#fin_002) | 3 |
| [Condensed Consolidated Statements of Changes in Redeemable Non-Controlling Interests and Stockholders' Deficit for the Three and Nine Months Ended September 30, 2025 and 2024](#fin_003) | 4 |
| [Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2025 and 2024](#fin_004) | 6 |
| [Notes to Condensed Consolidated Financial Statements](#fin_005) | 7 |

---

**ZEO ENERGY CORP.**

**CONDENSED CONSOLIDATED BALANCE SHEETS**

---

| | | |
|:---|:---|:---|
|  | **September 30,**<br>**2025** | **December 31,**<br>**2024** |
| <u>ASSETS</u> | (Unaudited) |  |
| Current Assets |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $3915900 | $5634115 |
| &nbsp;&nbsp;&nbsp;Accounts receivable, net | 10918344 | 9994881 |
| &nbsp;&nbsp;&nbsp;Accounts receivable – related parties | 465047 | 191662 |
| &nbsp;&nbsp;&nbsp;Inventories | 934871 | 872470 |
| &nbsp;&nbsp;&nbsp;Contract assets | 2511737 | 640709 |
| &nbsp;&nbsp;&nbsp;Contract assets – related parties | 3581890 | - |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 1590333 | 1554838 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Current Assets | 23918122 | 18888675 |
| &nbsp;&nbsp;&nbsp;Other assets | 92712 | 75935 |
| &nbsp;&nbsp;&nbsp;Interest receivable – related parties | 114393 | - |
| &nbsp;&nbsp;&nbsp;Deferred tax asset, net | - | 238491 |
| &nbsp;&nbsp;&nbsp;Property and equipment, net | 2871507 | 2475963 |
| &nbsp;&nbsp;&nbsp;Operating lease right-of-use assets | 1067373 | 1268139 |
| &nbsp;&nbsp;&nbsp;Finance lease right-of-use assets | 344657 | 447012 |
| &nbsp;&nbsp;&nbsp;Related party note receivable | 3000000 | 3000000 |
| &nbsp;&nbsp;&nbsp;Intangibles, net | - | 7571156 |
| &nbsp;&nbsp;&nbsp;Goodwill | 27091695 | 27010745 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TOTAL ASSETS | $58500459 | $60976116 |
| <u>LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS AND STOCKHOLDERS' DEFICIT</u> |  |  |
| Current Liabilities |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $3446248 | $2780885 |
| &nbsp;&nbsp;&nbsp;Accrued expenses and other current liabilities | 2844376 | 5181087 |
| &nbsp;&nbsp;&nbsp;Accrued expenses and other current liabilities – related parties | - | 3359101 |
| &nbsp;&nbsp;&nbsp;Contract liabilities | 1250465 | 201607 |
| &nbsp;&nbsp;&nbsp;Contract liabilities – related parties | - | 2000 |
| &nbsp;&nbsp;&nbsp;Current portion of operating lease obligations | 724083 | 583429 |
| &nbsp;&nbsp;&nbsp;Current portion of finance lease obligations | 140300 | 130464 |
| &nbsp;&nbsp;&nbsp;Current portion of long-term debt | 22887 | 291036 |
| &nbsp;&nbsp;&nbsp;Convertible promissory note, net | 2485000 | 2440000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Current Liabilities | 10913359 | 14969609 |
| &nbsp;&nbsp;&nbsp;Operating lease obligations, net of current portion | 448633 | 799385 |
| &nbsp;&nbsp;&nbsp;Finance lease obligations, net of current portion | 242318 | 348807 |
| &nbsp;&nbsp;&nbsp;Long-term debt, net of current portion | 61713 | 496623 |
| &nbsp;&nbsp;&nbsp;Warrant liabilities | 757620 | 1449000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TOTAL LIABILITIES | 12423643 | 18063424 |
| Redeemable Non-Controlling Interests |  |  |
| &nbsp;&nbsp;&nbsp;Class A convertible preferred units, 1,500,000 units issued and outstanding as of September 30, 2025 and December 31, 2024 | 16775111 | 16130871 |
| &nbsp;&nbsp;&nbsp;Class B units, 22,980,000 and 33,730,000 units issued and outstanding as of September 30, 2025 and December 31, 2024, respectively | 31023000 | 115693900 |
| Stockholders' Deficit |  |  |
| &nbsp;&nbsp;&nbsp;Class V common stock, $0.0001 par value, 100,000,000 authorized shares; 24,480,000 and 35,230,000 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively | 2448 | 3523 |
| &nbsp;&nbsp;&nbsp;Class A common stock, $0.0001 par value, 300,000,000 authorized shares; 31,198,080 and 13,252,964 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively | 3120 | 1326 |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 60084125 | 14523963 |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss | (4895) | - |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (61806093) | (103440891) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TOTAL STOCKHOLDERS' DEFICIT | (1721295) | (88912079) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TOTAL LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS AND STOCKHOLDERS' DEFICIT | $58500459 | $60976116 |

---

*The accompanying notes are an integral part of these condensed consolidated financial statements.*

**ZEO ENERGY CORP.**

**CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS**

**(UNAUDITED)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** <br> **September 30,** | **Three Months Ended** <br> **September 30,** | **Nine Months Ended** <br> **September 30,** | **Nine Months Ended** <br> **September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Revenues |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Revenue, net | $16879429 | $17329201 | $33072267 | $36457234 |
| &nbsp;&nbsp;&nbsp;Related party revenue, net | 7017019 | 2328704 | 17709806 | 18139099 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Net Revenues | 23896448 | 19657905 | 50782073 | 54596333 |
| Operating Expenses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cost of revenues | 10053666 | 9787350 | 22127832 | 30805155 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 249447 | 499876 | 8325628 | 1413074 |
| &nbsp;&nbsp;&nbsp;Sales and marketing | 9588385 | 5202525 | 17354517 | 16178375 |
| &nbsp;&nbsp;&nbsp;General and administrative | 5985459 | 7151005 | 21319509 | 15893998 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Operating Expenses | 25876957 | 22640756 | 69127486 | 64290602 |
| LOSS FROM OPERATIONS | (1980509) | (2982851) | (18345413) | (9694269) |
| Other Income (Expense) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Other income | 165308 | 137508 | 300999 | 188329 |
| &nbsp;&nbsp;&nbsp;Interest expense | (129719) | (209227) | (130007) | (294257) |
| &nbsp;&nbsp;&nbsp;Gain on change in fair value of warrant liabilities | 124200 | 138000 | 691380 | 828000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Other Income | 159789 | 66281 | 862372 | 722072 |
| NET LOSS FROM OPERATIONS BEFORE INCOME TAXES | (1820720) | (2916570) | (17483041) | (8972197) |
| &nbsp;&nbsp;&nbsp;Income tax benefit (provision) | (48752) | 44146 | (385258) | 235352 |
| NET LOSS | $(1869472) | $(2872424) | $(17868299) | $(8736845) |
| &nbsp;&nbsp;&nbsp;Less: net loss attributable to Sunergy Renewables LLC prior to the business combination | - | - | - | (523681) |
| NET LOSS SUBSEQUENT TO THE BUSINESS COMBINATION | (1869472) | (2872424) | (17868299) | (8213164) |
| &nbsp;&nbsp;&nbsp;Less: Net income (loss) attributable to redeemable non-controlling interests | 1355548 | (2448162) | (5866178) | (5979621) |
| NET LOSS ATTRIBUTABLE TO CLASS A COMMON STOCKHOLDERS | $(3225020) | $(424262) | $(12002121) | $(2233543) |
| LOSS PER CLASS A COMMON SHARE – BASIC AND DILUTED | $(0.12) | $(0.08) | $(0.53) | $(0.60) |
| WEIGHTED-AVERAGE CLASS A COMMON SHARES OUTSTANDING – BASIC AND DILUTED | 27307260 | 5053942 | 22489940 | 3696721 |
| COMPREHENSIVE LOSS |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Foreign currency translation adjustments | 4895 | - | 4895 | - |
| NET COMPREHENSIVE LOSS | $(3229915) | $(424262) | $(12007016) | $(2233543) |

---

*The accompanying notes are an integral part of these condensed consolidated financial statements.*

**ZEO ENERGY CORP.**

**CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN REDEEMABLE NON-CONTROLLING INTERESTS AND STOCKHOLDERS' DEFICIT**

**FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025**

**(UNAUDITED)**

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Redeemable Non-Controlling Interests** | **Redeemable Non-Controlling Interests** | **Redeemable Non-Controlling Interests** | **Redeemable Non-Controlling Interests** | | | | | | | | |
|  | **Class A Convertible Preferred Units** | **Class A Convertible Preferred Units** | **Class B Units** | **Class B Units** | **Class V<br> Common Stock** | **Class V<br> Common Stock** | **Class A<br> Common Stock** | **Class A<br> Common Stock** | | | | |
|  | **Units** | **Amount** | **Units** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** |<br>**Additional Paid-in**<br>**Capital** | **Accumulated**<br>**Other Comprehensive**<br>**Loss** |<br>**Accumulated**<br>**Deficit** |<br>**Total Stockholders'**<br>**(Deficit)** |
| **Balance, December 31, 2024** | 1500000 | $16130871 | 33730000 | $115693900 | 35230000 | $3523 | 13252964 | $1326 | $14523963 | $- | $(103440891) | $(88912079) |
| Stock-based compensation |  |  |  |  |  |  |  |  | 2137247 |  |  | 2137247 |
| Class A common stock issued to employees for services |  |  |  |  |  |  | 43500 | 4 | 63505 |  |  | 63509 |
| Reverse recapitalization related deferred taxes and adjustments |  |  |  |  |  |  |  |  | (238491) |  |  | (238491) |
| Class A common stock issued in exchange for OpCo class B units and corresponding class V common stock |  |  | (8500000) | (18785000) | (8500000) | (850) | 8500000 | 850 | 18785000 |  |  | 18785000 |
| Subsequent measurement of redeemable non-controlling interests |  |  |  | (51448264) |  |  |  |  |  |  | 51448264 | 51448264 |
| Net income (loss) | - | 405237 | - | (7363336) | - | - | - | - | - | - | (6361265) | (6361265) |
| **Balance, March 31, 2025** | 1500000 | $16536108 | 25230000 | $38097300 | 26730000 | $2673 | 21796464 | $2180 | $35271224 | $- | $(58353892) | $(23077815) |
| Stock-based compensation |  |  |  |  |  |  |  |  | 1078202 |  |  | 1078202 |
| Class A common stock issued upon vesting of restricted stock awards |  |  |  |  |  |  | 50000 | 5 | (5) |  |  |  |
| Class A common stock issued in exchange for OpCo class B units and corresponding class V common stock |  |  | (250000) | (417500) | (250000) | (25) | 250000 | 25 | 417500 |  |  | 417500 |
| Subsequent measurement of redeemable non-controlling interests |  |  |  | 35448793 |  |  |  |  |  |  | (35448793) | (35448793) |
| Net income (loss) | - | 422966 |  | (686593) | - | - | - | - | - | - | (2415836) | (2415836) |
| **Balance, June 30, 2025** | 1500000 | $16959074 | 24980000 | $72442000 | 26480000 | $2648 | 22096464 | $2210 | $36766921 | $- | $(96218521) | $(59446742) |
| Stock-based compensation |  |  |  |  |  |  |  |  | 2733678 |  |  | 2733678 |
| Class A common stock issued upon vesting of restricted stock awards |  |  |  |  |  |  | 206293 | 20 | (20) |  |  |  |
| Tax withholding paid related to stock-based compensation |  |  |  |  |  |  |  |  | (160353) |  |  | (160353) |
| Class A common stock issued in exchange for OpCo class B units and corresponding class V common stock |  |  | (2000000) | (4700000) | (2000000) | (200) | 2000000 | 200 | 4700000 |  |  | 4700000 |
| Class A common stock issued in the acquisition of Heliogen, Inc. |  |  |  |  |  |  | 6217612 | 622 | 14424238 |  |  | 14424860 |
| Class A common stock issued in settlement of accrued advisory fees |  |  |  |  |  |  | 677711 | 68 | 1619661 |  |  | 1619729 |
| Dividends paid to preferred unit holders |  | (621063) |  |  |  |  |  |  |  |  |  |  |
| Foreign currency translation |  |  |  |  |  |  |  |  |  | (4895) |  | (4895) |
| Subsequent measurement of redeemable non-controlling interests |  |  |  | (37637448) |  |  |  |  |  |  | 37637448 | 37637448 |
| Net income (loss) | - | 437100 | - | 918448 | - | - | - | - | - | - | (3225020) | (3225020) |
| **Balance, September 30, 2025** | 1500000 | $16775111 | 22980000 | $31023000 | 24480000 | $2448 | 31198080 | $3120 | $60084125 | $(4895) | $(61806093) | $(1721295) |

---

*The accompanying notes are an integral part of these condensed consolidated financial statements.*

**ZEO ENERGY CORP.**

**CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN REDEEMABLE NON-CONTROLLING INTERESTS AND STOCKHOLDERS' DEFICIT**

**FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024**

**(UNAUDITED)**

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Redeemable Non-Controlling Interests** | **Redeemable Non-Controlling Interests** | **Redeemable Non-Controlling Interests** | **Redeemable Non-Controlling Interests** | | | | | | | | | |
|  | **Class A Convertible Preferred Units** | **Class A Convertible Preferred Units** | **Class B Units** | **Class B Units** | **Common Units** | **Common Units** | **Class V<br> Common Stock** | **Class V<br> Common Stock** | **Class A<br> Common Stock** | **Class A<br> Common Stock** | | | |
|  | **Units** | **Amount** | **Units** | **Amount** | **Units** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** |<br>**Additional Paid-in**<br>**Capital** |<br>**Accumulated**<br>**Deficit** | **Total**<br>**Stockholders' Equity**<br>**(Deficit)** |
| **Balance, December 31, 2023** |  | $- |  | $- | 1000000 | $31155864 |  | $- |  | $- | $- | $(533345) | $30622519 |
| Retroactive application of Business Combination | - | - | - | - | (1000000) | (31155864) | 33730000 | 3373 | - | - | 31152491 | - | - |
| **Balance, December 31, 2023** |  |  |  |  |  |  | 33730000 | 3373 |  |  | 31152491 | (533345) | 30622519 |
| Stockholder distributions |  |  |  |  |  |  |  |  |  |  |  | (90000) | (90000) |
| Net loss prior to the Business Combination |  |  |  |  |  |  |  |  |  |  |  | (523681) | (523681) |
| **Effects of Business Combination** |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Issuance of Class A Shares to third party advisors |  |  |  |  |  |  |  |  | 178207 | 18 | 891017 |  | 891035 |
| Issuance of Class A Shares to backstop investor |  |  |  |  |  |  |  |  | 225174 | 23 | 1569440 |  | 1569463 |
| Reverse Recapitalization | 1500000 | 6855076 |  |  |  |  | 1500000 | 150 | 4248583 | 425 | (1677860) |  | (1677285) |
| Transaction costs |  |  |  |  |  |  |  |  |  |  | (2890061) |  | (2890061) |
| Establishment of redeemable noncontrolling interests |  |  | 33730000 | 26116548 |  |  |  |  |  |  | (26116548) |  | (26116548) |
| **Activities subsequent to business combination** |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Stock-based compensation |  |  |  |  |  |  |  |  | 375000 | 37 | 3118547 |  | 3118584 |
| Subsequent measurement of redeemable non-controlling interests |  |  |  | 176420473 |  |  |  |  |  |  | (6047026) | (170373447) | (176420473) |
| Net income (loss) | - | 8224091 | - | (10276021) | - | - | - | - | - | - | - | (1531491) | (1531491) |
| **Balance, March 31, 2024** | 1500000 | $15079167 | 33730000 | $192261000 | - | $- | 35230000 | $3523 | 5026964 | $503 | $- | $(173051964) | $(173047938) |
| Stock-based compensation |  |  |  |  |  |  |  |  |  |  | 2417888 |  | 2417888 |
| Subsequent measurement of redeemable non-controlling interests |  |  |  | (117877583) |  |  |  |  |  |  |  | 117877583 | 117877583 |
| Net income (loss) | - | 384388 | - | (1863917) | - | - | - | - | - | - | - | (277790) | (277790) |
| **Balance, June 30, 2024** | 1500000 | 15463555 | 33730000 | 72519500 |  |  | 35230000 | 3523 | 5026964 | 503 | 2417888 | (55452171) | (53030257) |
| Stock-based compensation |  |  |  |  |  |  |  |  |  |  | 1089617 |  | 1089617 |
| Class A common stock issued for services |  |  |  |  |  |  |  |  | 146000 | 15 | 255485 |  | 255500 |
| Reverse recapitalization related deferred taxes and adjustments |  |  |  |  |  |  |  |  |  |  | 112909 |  | 112909 |
| Subsequent measurement of redeemable non-controlling interests |  |  |  | (12669083) |  |  |  |  |  |  |  | 12669083 | 12669083 |
| Net income (loss) | - | 398555 | - | (2846717) | - | - | - | - | - | - | - | (424262) | (424262) |
| **Balance, September 30, 2024** | 1500000 | $15862110 | 33730000 | $57003700 | - | $- | 35230000 | $3523 | 5172964 | $518 | $3875899 | $(43207350) | $(39327410) |

---

*The accompanying notes are an integral part of these condensed consolidated financial statements.*

**ZEO ENERGY CORP.**

**CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(UNAUDITED)**

---

| | | |
|:---|:---|:---|
|  | **Nine Months Ended<br> September 30,** | **Nine Months Ended<br> September 30,** |
|  | **2025** | **2024** |
| CASH FLOWS FROM OPERATING ACTIVITIES |  |  |
| &nbsp;&nbsp;&nbsp;Net loss | $(17868299) | $(8736845) |
| Adjustment to reconcile net loss to net cash used in operating activities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 8325628 | 1413074 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of debt discount | 45000 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on change in fair value of warrant liabilities | (691380) | (828000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on disposal of fixed assets | - | (91684) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 6005505 | 6846318 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Class A common stock issued to employees for services | 63509 | 255500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for credit losses | 2557343 | 2282588 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-cash operating lease expense | 471966 | 523821 |
| Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | (3175426) | (7864274) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable – related parties | (273385) | (36410) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | (62401) | (131898) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contract assets | (1871028) | 3842974 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contract assets – related parties | (3581890) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaids and other current assets | 974118 | (689656) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets | (2180) | (254806) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest receivable – related parties | (114393) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 2431056 | (437190) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and other current liabilities | (1573123) | (1195659) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and other current liabilities – related parties | (3359101) | (1985281) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contract liabilities | 1048858 | (3460989) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contract liabilities – related parties | (2000) | (1160848) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating lease payments | (481298) | (480270) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in operating activities | (11132921) | (12189535) |
| CASH FLOWS FROM INVESTING ACTIVITIES |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases of property and equipment | (1047661) | (285067) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash acquired in the acquisition of Heliogen | 14596267 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) investing activities | 13548606 | (285067) |
| CASH FLOWS FROM FINANCING ACTIVITIES |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from the issuance of convertible preferred stock, net of transaction costs | - | 9221649 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repayments of debt | (3250936) | (261563) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repayments of finance lease liabilities | (96653) | (87728) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends paid to OpCo class A preferred unit holders | (621063) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax withholdings paid related to stock-based compensation | (160353) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Distributions to members | - | (90000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash (used in) provided by financing activities | (4129005) | 8782358 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effect on foreign exchange on cash | (4895) | - |
| NET CHANGE IN CASH AND CASH EQUIVALENTS | (1718215) | (3692244) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents, beginning of period | 5634115 | 8022306 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents, end of the period | $3915900 | $4330062 |
| SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash paid for interest | $85007 | $135980 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash paid for income taxes | $- | $- |
| NON-CASH INVESTING AND FINANCING ACTIVITIES |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loss attributable to redeemable non-controlling interest | $7131481 | $14986655 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;OpCo class A preferred dividends | $1265303 | $9007034 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subsequent measurement of redeemable non-controlling interest | $53636919 | $45873807 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Class A common stock issued upon vesting of restricted stock awards | $25 | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Class A common stock issued in exchange for class V common stock | $1075 | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fair value of class A common stock issued in exchange for OpCo class B units | $23902500 | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reverse recapitalization related deferred taxes and adjustments | $(238491) | $112909 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating lease right-of-use asset and liability measurement | $140975 | $790615 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred equity issuance costs | $- | $2769039 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Issuance of class A common stock to vendors | $- | $891035 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Issuance of class A common stock to backstop investors | $- | $1569463 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable settled for loan payable | $2547877 | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net assets acquired in the acquisition of Heliogen | $14424860 | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Class A common stock issued in the acquisition of Heliogen | $14424860 | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Class A common stock issued in settlement of accrued advisory fees | $1619729 | $- |

---

*The accompanying notes are an integral part of these condensed consolidated financial statements.*

**Zeo Energy Corp.**

**Notes to the Condensed Consolidated Financial Statements**

**SEPTEMBER 30, 2025**

**(UNAUDITED)**

**NOTE 1** **—BASIS OF PRESENTATION AND OTHER INFORMATION**

The accompanying unaudited condensed consolidated financial statements of Zeo Energy Corp. (the "Company" or "Zeo") have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and with the instructions to Form 10-Q of Regulation S-X. They do not include all the information and footnotes required by GAAP for complete financial statements. The December 31, 2024 consolidated balance sheet data was derived from audited financial statements but do not include all disclosures required by GAAP. The interim unaudited condensed consolidated financial statements should be read in conjunction with those consolidated financial statements included in the Form 10-K, as filed with the Securities and Exchange Commission on May 28, 2025. In the opinion of management, all adjustments considered necessary for a fair presentation of the financial statements, consisting solely of normal recurring adjustments, have been made. Operating results for the nine months ended September 30, 2025 are not necessarily indicative of the results that may be expected for the year ending December 31, 2025.

***Reclassifications***

Certain prior period amounts have been reclassified in the condensed consolidated financial statements and accompanying notes to conform to the current period presentation. These reclassifications included changes within contract assets, prepaid expenses and other current assets, and other assets on the consolidated balance sheets. The reclassifications had no impact on previously reported net loss, total assets, total liabilities, stockholders' deficit, or total cash flows from operations.

***Recently Adopted Accounting Pronouncements***

In August 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-05, "*Business Combinations—Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement*," which requires a newly-formed joint venture to apply a new basis of accounting to its contributed net assets, resulting in the joint venture initially measuring its contributed net assets at fair value on the formation date. ASU 2023-05 is effective for all joint venture formations with a formation date on or after January 1, 2025, with early adoption permitted. These amendments are to be applied prospectively, with retrospective application permitted for joint ventures formed before the effective date. The adoption of ASU 2023-05 did not have a material impact on the Company's condensed consolidated financial statements.

***Recently Issued Accounting Pronouncements Not Yet Adopted***

In December 2023, the FASB issued ASU 2023-09, "*Income Taxes (Topic 740): Improvements to Income Tax Disclosures*," which enhances the transparency and decision usefulness of income tax disclosures by requiring; (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. It also includes certain other amendments to improve the effectiveness of income tax disclosures. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. These amendments are to be applied prospectively, with retrospective application permitted. The Company is currently evaluating the impact this standard will have on its condensed consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03, "*Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses*," which requires the disaggregated disclosure of specific expense categories, including purchases of inventory, employee compensation, depreciation, and amortization included in each relevant expense caption presented on the statement of operations. The standard also requires disclosure of qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively, as well as the total amount of selling expenses and an entity's definition of selling expenses. ASU 2024-03 is effective for annual periods beginning after December 15, 2026, and interim periods beginning after December 15, 2027. The Company is currently evaluating the impact this standard will have on its condensed consolidated financial statements.

In July 2025, the FASB issued ASU 2025-05, "*Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets*," which introduces a practical expedient for the application of the current expected credit loss model to current accounts receivable and contract assets. The amendment is effective for interim and annual periods beginning after December 15, 2025, with early adoption permitted. This amendment is to be applied on a prospective basis. The Company is currently evaluating the impact this standard will have on its condensed consolidated financial statements.

In September 2025, the FASB issued ASU 2025-06, "*Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software*". This guidance removes all references to project stages throughout ASC 350-40 and clarifies the threshold entities apply to begin capitalizing costs. Under the new standard, cost capitalization should only commence when an entity has committed to funding a software project and it is probable the project will be completed and the software will be used for its intended function. The amendments are effective for annual reporting periods beginning after December 15, 2027 and interim reporting periods within those annual reporting periods. Entities may apply the guidance using a prospective, retrospective or modified transition approach. Early adoption is permitted as of the beginning of an annual reporting period. The Company is currently evaluating the impact this standard will have on its condensed consolidated financial statements.

The Company currently believes there are no other issued and not yet effective accounting standards that are materially relevant to its condensed consolidated financial statements.

**NOTE 2** **—LIQUIDITY AND GOING CONCERN** 

As of September 30, 2025, the Company had cash and cash equivalents of $3.9 million, positive working capital of $13.0 million, and total stockholders' deficit of $1.7 million. For the nine months ended September 30, 2025, the Company incurred a net loss of $17.9 million and used $11.1 million of cash in operating activities. Management has assessed the going concern assumptions of the Company during the preparation of these condensed consolidated financial statements.

The Company's condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.

**NOTE 3—BUSINESS COMBINATIONS**

 ****

***Heliogen Acquisition***

On May 28, 2025, the Company entered into a plan of merger and reorganization agreement with Heliogen, Inc. ("Heliogen"), a renewable-energy technology company that provides solutions for delivering low-carbon energy production by combining commercially proven solar technologies with thermal systems and storage expertise. The transaction was completed on August 8, 2025, under which Heliogen became a wholly owned subsidiary of the Company.

The acquisition of Heliogen aligns with the Company's strategy to expand its clean-energy platform beyond residential markets into large-scale commercial and industrial energy generation and storage. Additionally, Heliogen is expected to complement the Company's existing solar operations, create operational synergies, and broaden market reach.

The total consideration transferred consisted entirely of the Company's class A common stock, issued to Heliogen shareholders at an exchange ratio of 0.9591 shares of the Company for each share of Heliogen common stock, resulting in the issuance of 6,217,612 class A common shares. No contingent consideration was included. In connection with the merger, all outstanding Heliogen SPAC warrants and restricted stock units ("RSUs") were automatically accelerated and fully vested and were settled in the same equity consideration, net of applicable tax withholding. All stock options and commercial warrants were out-of-the-money and canceled with no value.

The Company accounted for the acquisition using the acquisition method of accounting in accordance with ASC Topic 805, "*Business Combinations*," and allocated the purchase price to the assets acquired and liabilities assumed based on their estimated fair values at the acquisition date, with the excess of purchase price over the estimated fair value of the net assets acquired recorded as goodwill. Goodwill is not deductible for tax purposes.

The purchase price was allocated as follows:

---

| | |
|:---|:---|
|  | **Preliminary Allocation** |
| **Purchase consideration at fair value:** | |
| &nbsp;&nbsp;&nbsp;Class A common stock | $14424860 |
| **Assets acquired and liabilities assumed at fair value** |  |
| &nbsp;&nbsp;&nbsp;Cash | $14596267 |
| &nbsp;&nbsp;&nbsp;Accounts receivable | 305380 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 1065991 |
| &nbsp;&nbsp;&nbsp;Other assets | 14597 |
| &nbsp;&nbsp;&nbsp;Operating lease right-of-use assets | 130225 |
| &nbsp;&nbsp;&nbsp;Goodwill | 80950 |
| &nbsp;&nbsp;&nbsp;Accounts payable | (782184) |
| &nbsp;&nbsp;&nbsp;Accrued expenses | (856141) |
| &nbsp;&nbsp;&nbsp;Operating lease liabilities | (130225) |
| Net assets acquired | $14424860 |

---

From the date of acquisition, Heliogen contributed revenues of $0 and a net loss of $1,017,239, which are included in the consolidated statement of operations for the three and nine months ended September 30, 2025.

*<u>Pro Forma Information</u>*

The following unaudited pro forma results presented below include the effects of the Heliogen acquisition as if it had been consummated as of January 1, 2024, with adjustments to give effect to pro forma events that are directly attributable to the acquisition.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended <br> September 30,** | **Three Months Ended <br> September 30,** | **Nine Months Ended <br> September 30,** | **Nine Months Ended <br> September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Net revenues | $23946448 | $20707905 | $50945678 | $59435333 |
| Net loss | (13283859) | (14687424) | (34716447) | (55058845) |
| Net loss attributable to class A common stockholders | (14639407) | (12239262) | (28850269) | (48555543) |
| Loss per share attributable to common stockholders – basic and diluted | $(0.50) | $(1.09) | $(1.05) | $(4.90) |

---

These unaudited pro forma results are presented for informational purposes only and are not necessarily indicative of what the actual results of operations would have been if the acquisitions had occurred at the beginning of the period presented, nor are they indicative of future results of operations.

**NOTE 4** **—DISAGGREGATION OF REVENUES AND SEGMENT REPORTING** 

 ****

The Company's revenues are disaggregated based on revenue type, including (i) solar system installations, and (ii) roofing installations.

The Company's net revenues for the three and nine months ended September 30, 2025 and 2024 are disaggregated as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended <br> September 30,** | **Three Months Ended <br> September 30,** | **Nine Months Ended <br> September 30,** | **Nine Months Ended <br> September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Solar system installations, net | $23635215 | $19230550 | $49699771 | $52332526 |
| Roofing installations | 261233 | 427355 | 1082302 | 2263807 |
| &nbsp;&nbsp;&nbsp;Total net revenues | $23896448 | $19657905 | $50782073 | $54596333 |

---

For the nine months ended September 30, 2025 and 2024, the Company had three and two customers, respectively, who exceeded 10% of revenue recognized. Their aggregate revenue recognized was $44,636,037 and $44,943,845 for the nine months ended September 30, 2025 and 2024, respectively.

 ****

Segment information for the three and nine months ended September 30, 2025 and 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended <br> September 30,** | **Three Months Ended <br> September 30,** | **Nine Months Ended <br> September 30,** | **Nine Months Ended <br> September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Net revenues | $23896448 | $19657905 | $50782073 | $54596333 |
| Less: cost of revenues (exclusive of depreciation and amortization shown below): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Direct labor | 2218124 | 2787617 | 5692497 | 7666087 |
| &nbsp;&nbsp;&nbsp;Materials | 7230607 | 7389256 | 13678280 | 20614402 |
| &nbsp;&nbsp;&nbsp;Other | 604935 | (389523) | 2757055 | 2524666 |
| Cost of revenues (exclusive of depreciation and amortization): | 10053666 | 9787350 | 22127832 | 30805155 |
| Less: depreciation and amortization related to cost of revenues | 135393 | 283326 | 568415 | 614272 |
| &nbsp;&nbsp;&nbsp;Total gross profit | $13707389 | $9587229 | $28085826 | $23176906 |
| Depreciation and amortization | 114054 | 216550 | 7757213 | 798802 |
| Commissions expense | 5965767 | 4893360 | 12735435 | 12663350 |
| Sales and marketing (exclusive of commissions expense above) | 3622618 | 309165 | 4619082 | 3515025 |
| General and administrative | 5985459 | 7151005 | 21319509 | 15893998 |
| Other income, net | (165308) | (137508) | (300999) | (188329) |
| Interest expense | 129719 | 209227 | 130007 | 294257 |
| Gain on change in fair value of warrant liabilities | (124200) | (138000) | (691380) | (828000) |
| &nbsp;&nbsp;&nbsp;Total net loss before income taxes | (1820720) | (2916570) | (17483041) | (8972197) |
| Income tax benefit (provision) | (48752) | 44146 | (385258) | 235352 |
| &nbsp;&nbsp;&nbsp;Net loss | $(1869472) | $(2872424) | $(17868299) | $(8736845) |

---

The Company has one operating segment and one reportable segment, the business of sales and installation of solar panel technology to individual households within the United States. The Company's chief operating decision-maker ("CODM") is the chief executive officer. The CODM reviews and evaluates consolidated net income (loss) for purposes of evaluating financial performance, making operating decisions, allocating resources, and planning and forecasting for future periods.

**NOTE 5** **—PROPERTY AND EQUIPMENT**

Property and equipment as of September 30, 2025 and December 31, 2024 consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **September 30,**<br>**2025** | **December 31,**<br>**2024** |
| Internally-developed software | $2035887 | $988225 |
| Office furniture and equipment | 384368 | 384368 |
| Transportation equipment | 2477033 | 2477034 |
| Leasehold improvements | 10000 | 10000 |
| &nbsp;&nbsp;&nbsp;Total property and equipment | 4907288 | 3859627 |
| Less: accumulated depreciation | (2035781) | (1383664) |
| &nbsp;&nbsp;&nbsp;Total property and equipment, net | $2871507 | $2475963 |

---

Depreciation expense for the three months ended September 30, 2025 and 2024 was $219,095 and $208,746, respectively. Depreciation expense for the nine months ended September 30, 2025 and 2024 was $652,117 and $539,692, respectively.

**NOTE** **6—INTANGIBLE ASSETS**

Intangible assets as of September 30, 2025 and December 31, 2024 consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **September 30,**<br>**2025** | **December 31,**<br>**2024** |
| Trade names | $3084100 | $3084100 |
| Customer lists | 496800 | 496800 |
| Non-compete | 224000 | 224000 |
| Order backlog | 10808821 | 10808821 |
| &nbsp;&nbsp;&nbsp;Total intangible assets | 14613721 | 14613721 |
| Less: accumulated amortization | (14613721) | (7042565) |
| &nbsp;&nbsp;&nbsp;Total intangible assets, net | $- | $7571156 |

---

Amortization expense for the three months ended September 30, 2025 and 2024 was $0 and $257,011, respectively. Amortization expense for the nine months ended September 30, 2025 and 2024 was $7,571,156 and $771,028, respectively.

**NOTE 7** **—ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES**

Accrued expenses and other current liabilities as of September 30, 2025 and December 31, 2024 consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **September 30,<br> 2025** | **December 31,<br> 2024** |
| Accrued payroll liabilities | $727727 | $421825 |
| Accrued commissions | 1131921 | 290969 |
| Accrued interest | 3110 | 84425 |
| Accrued taxes | 706732 | 8900 |
| Accrued credit cards | 47401 | 26632 |
| Accrued transaction costs | - | 3208288 |
| Other accrued liabilities | 227485 | 1140048 |
| &nbsp;&nbsp;&nbsp;Total accrued expenses and other current liabilities | $2844376 | $5181087 |

---

Accrued expenses and other current liabilities – related parties as of September 30, 2025 and December 31, 2024 consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **September 30,<br> 2025** | **December 31,<br> 2024** |
| Customer advances | $- | $3359101 |
| &nbsp;&nbsp;&nbsp;Total accrued expenses and other current liabilities – related parties | $- | $3359101 |

---

**NOTE 8** **—LEASES**

***Operating Leases***

In June 2025, the Company entered into a lease agreement for office space located in Richmond, Virginia. The lease commenced on June 1, 2025 and is for a term of three years. Under the terms of the lease, the Company will lease the premises at the monthly rate of $1,995 for the first year, with scheduled annual increases. The lease agreement contains customary events of default, representations, warranties, and covenants. The measurement of the right-of-use asset and liability associated with this operating lease was $68,760.

In July 2025, the Company entered into a lease agreement for office space located in Sardinia, Ohio. The lease commenced on July 1, 2025 and is for a term of two years. Under the terms of the lease, the Company will lease the premises at the monthly rate of $3,150 for the first year, with scheduled annual increases. The lease agreement contains customary events of default, representations, warranties, and covenants. The measurement of the right-of-use asset and liability associated with this operating lease was $72,215.

In August 2025, in connection with the acquisition of Heliogen, the Company entered into a lease agreement for office space located in Houston, Texas. The lease commenced on August 8, 2025 and is for a term of 13 months. Under the terms of the lease, the Company will lease the premises at the monthly rate of $10,451. The lease agreement contains customary events of default, representations, warranties, and covenants. The measurement of the right-of-use asset and liability associated with this operating lease was $130,225 and is part of the net assets acquired in the acquisition of Heliogen in the non-cash investing and financing activities of the condensed consolidated statements of cash flows.

The following was included in the condensed consolidated balance sheets at September 30, 2025 and December 31, 2024:

---

| | | |
|:---|:---|:---|
|  | **September 30,<br> 2025** | **December 31,<br> 2024** |
| Operating lease right-of-use assets | $1067373 | $1268139 |
| Operating lease liabilities, current portion | 724083 | 583429 |
| Operating lease liabilities, long-term | 448633 | 799385 |
| &nbsp;&nbsp;&nbsp;Total operating lease liabilities | $1172716 | $1382814 |
| Weighted-average remaining lease term (years) | 1.64 | 2.39 |
| Weighted-average discount rate | 4.98% | 4.97% |

---

The Company records operating lease costs in general and administrative expenses in the condensed consolidated statements of operations. Operating lease costs for the three months ended September 30, 2025 and 2024 was $167,914 and $133,892, respectively. Operating lease costs for the nine months ended September 30, 2025 and 2024 was $516,889 and $461,822, respectively.

As of September 30, 2025, maturities of operating lease liabilities were as follows:

---

| | |
|:---|:---|
| **Year Ending December 31,** | **Amount** |
| 2025 (remaining) | $192604 |
| 2026 | 717863 |
| 2027 | 244051 |
| 2028 | 69147 |
| &nbsp;&nbsp;&nbsp;Total | 1223665 |
| Less: imputed interest | (50949) |
| &nbsp;&nbsp;&nbsp;Total operating lease liabilities | $1172716 |

---

 ****

***Finance Leases***

As of September 30, 2025, maturities of finance lease liabilities were as follows:

---

| | |
|:---|:---|
| **Year Ending December 31,** | **Amount** |
| 2025 (remaining) | $42869 |
| 2026 | 171476 |
| 2027 | 171476 |
| 2028 | 47607 |
| &nbsp;&nbsp;Total | 433428 |
| Less: imputed interest | (50810) |
| &nbsp;&nbsp;Total finance lease liabilities | $382618 |

---

As of September 30, 2025, the weighted-average remaining lease term for all finance leases is 2.53 years and the weighted average discount rate is 9.76%.

**NOTE 9** **—DEBT**

 ****

***Vehicle Loans***

The Company has financing arrangements for many of the vehicles in its fleet. The financing includes direct loans for each vehicle being financed. Payments of debt obligations are based on equal monthly payments for 60 months and include interest rates ranging from 4.94% to 11.09%. As of September 30, 2025, the weighted-average interest rate on the Company's vehicle loan obligations was 11.09%. The combined amounts of these financial obligations are included in the condensed consolidated balance sheets as current portion of long-term debt and long-term debt. The Company does not have debt covenants associated with these arrangements.

As of September 30, 2025, estimated future minimum principal payments of vehicle loans were as follows:

---

| | |
|:---|:---|
| **Year Ending December 31,** | **Amount** |
| 2025 (remaining) | $5488 |
| 2026 | 23526 |
| 2027 | 26264 |
| 2028 | 29322 |
| &nbsp;&nbsp;&nbsp;Total | 84600 |
| Less: current portion | (22887) |
| &nbsp;&nbsp;&nbsp;Total long-term debt | $61713 |

---

***Loan Payable***

 ****

On July 1, 2025, the Company converted $2,547,877 of outstanding accounts payable with a vendor into a loan payable with the same vendor. The loan bears interest at an annual rate of 18% (1.5% monthly) and provides for scheduled principal payments beginning in July 2025, with maturity on August 22, 2025. The transaction reduced the Company's accounts payable and established a formal financing arrangement under the stated terms. The loan, including accrued interest, was repaid during the period.

 ****

***Convertible Note Payable***

On December 24, 2024, the Company, issued a Promissory Note (the "Promissory Note") to LHX Intermediate LLC ("LHX"), pursuant to which the Company could borrow up to an aggregate principal amount of $4,000,000 (the "Loan"). Subject to the terms and conditions set forth in the Promissory Note, the Loan shall be provided to the Company in three tranches: (i) $2,500,000 upon execution of the Promissory Note (the "Initial Advance"), (ii) $750,000 if the Company achieves the Tranche 2 Milestone within 60 days from the Initial Advance (the "Tranche 2 Advance") and (iii) $750,000 if the Company achieves the Tranche 3 Milestone within 60 days from the Tranche 2 Advance. "Tranche 2 Milestone" means the submission by the Company to the applicable regulatory bodies at least 340 permits to install solar energy systems sold through the Company's year-round sales program. "Tranche 3 Milestone" means the completion by the Company of the installation of at least 296 solar energy systems sold through the Company's year-round sales program." LHX may also waive any milestone described above and advance the applicable amounts to the Company. As of September 30, 2025, $2.5 million has been advanced and the balance of $2.5 million, net of debt discount is included in Convertible Promissory Note on the accompanying condensed consolidated balance sheet. On April 15, 2025, the Promissory Note was amended with the result that the Tranche 2 Advance would be delivered if a Tranche 2 Milestone is met within 120 days of the Initial Advance, and the Tranche 3 Advance would be delivered if a Tranche 3 Milestone is met within 120 days of the Tranche 2 Advance.

No interest shall be charged or accrue on the balance outstanding on the loan. The Loan will be repaid in full (the "Repayment") by issuing to LHX or its designee a specified number of the Company's shares of Class A common stock ("Class A Common Stock") equal to the quotient of (i) the outstanding and unpaid amount of the Loan, divided by (ii) $1.35 (the "Share Issuance"). The Repayment shall take place immediately following the later of: (x) the day falling on the first anniversary of the Issue Date (or the immediately previous business day) and (y) the date on which the stockholders of the Company approve the Share Issuance. Due to this provision, the Company considered whether the embedded conversion option qualifies for derivative accounting under ASC Topic 815-15 "*Derivatives and Hedging*." As the note is not convertible until maturity, no derivative liability was recognized as of September 30, 2025. Based on the Company's stock price on the date the note was entered into, the computed effective interest rate on the loan was 58.5%. Based on the Company's stock price at September 30, 2025, the computed effective interest rate on the loan was 0%.

In connection with the Promissory Note, on December 24, 2024, LHX entered into a voting agreement with the Company and certain stockholders of the Company (the "LHX Voting Agreement"), pursuant to which such stockholders agreed to vote (or cause to be voted), in person or by proxy, all the shares of Class A Common Stock and Class V common stock owned by such stockholders (i) in favor of the nomination and appointment of LHX's designee to the board of directors of the Company (ii) in favor of the issuance by the Company to LHX of shares of Class A Common Stock in connection with an option that may be granted to LHX to purchase up to 4,000,000 shares of Class A Common Stock, subject to the terms and conditions therein and (iii) in favor of the Share Issuance, when required pursuant to the Promissory Note.

**NOTE** **10—FAIR VALUE MEASUREMENTS**

***Recurring Fair Value Measurements***

The fair value of financial instruments measured on a recurring basis as of September 30, 2025 consisted of the following:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Fair Value Measurements as of <br> September 30, 2025** | **Fair Value Measurements as of <br> September 30, 2025** | **Fair Value Measurements as of <br> September 30, 2025** | **Fair Value Measurements as of <br> September 30, 2025** |
| <br>**Description** | **Level 1** | **Level 2** | **Level 3** | **Total** |
| Warrant liabilities | $757620 | $- | $- | $757620 |

---

The following table provides a roll-forward of changes for financial instruments measured at fair value on a recurring basis for the nine months ended September 30, 2025:

---

| | |
|:---|:---|
|  | **Amount** |
| **<u>Warrant Liabilities</u>** | |
| Balance as of December 31, 2024 | $1449000 |
| &nbsp;&nbsp;&nbsp;Gain on change in fair value of warrant liabilities | (691380) |
| &nbsp;&nbsp;&nbsp;Extinguishment of warrant liabilities upon settlement | - |
| Balance as of September 30, 2025 | $757620 |

---

**NOTE 11** **—REDEEMABLE NON-CONTROLLING INTERESTS AND EQUITY**

The table below reflects share information about the Company's capital stock as of September 30, 2025:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Par Value** | **Authorized** | **Issued** | **Treasury Stock** | **Outstanding** |
| Class A common stock | $0.0001 | 300000000 | 31198080 |  | 31198080 |
| Class V common stock | $0.0001 | 100000000 | 24480000 |  | 24480000 |
| Class A convertible preferred units | $0.0001 | 1500000 | 1500000 |  | 1500000 |
| Class B units | $0.0001 | 33730000 | 22980000 |  | 22980000 |
| &nbsp;&nbsp;&nbsp;Total shares |  | 435230000 | 80158080 |  | 80158080 |

---

***Class A Common Stock***

During the nine months ended September 30, 2025, 10,750,000 class A common shares were issued in exchange for OpCo class B units and corresponding class V common shares.

On March 13, 2025, 50,000 class A common shares were issued upon vesting of restricted stock awards from the March 2024 grant (see Note 12 for further details).

On March 31, 2025, an aggregate of 43,500 class A common shares were issued to employees for services valued at $63,509.

On August 5, 2025, 206,293 class A common shares, net of tax withholding, were issued upon vesting of restricted stock awards from the February 2025 grant (see Note 12 for further details).

On August 8, 2025, in connection with acquisition of Heliogen, the Company issued the Heliogen shareholders 6,217,612 class A common shares (see Note 3 for further details).

On August 11, 2025, the Company issued 677,711 shares of Zeo class A common stock to settle accrued buyside advisory fees of $1.6 million from the Heliogen acquisition.

***Redeemable Non-Controlling Interests***

During the nine months ended September 30, 2025, 10,750,000 units were converted to class A common stock. As a result, as of September 30, 2025, 22,980,000 units are outstanding. The prior investors' interests in OpCo represent a redeemable noncontrolling interest. At its discretion, the members have the right to exchange their common units in OpCo (along with the cancellation of the paired shares of Zeo Energy Corp. or the class V common stock) for either shares of class A common stock on a one-to-one basis or cash proceeds of equal value at the time of redemption. Any redemption of OpCo common units in cash must be funded through a private or public offering of class A common stock and is subject to the Company's Board's approval. As of September 30, 2025, the prior investors of OpCo hold the majority of the voting rights on the Board.

 ****

During the nine months ended September 30, 2025, there was 10,750,000 exchanges of Opco units for class A common stock of Zeo. Payments under the Tax Receivable Agreement (the "TRA") are not considered probable as of September 30, 2025. Future exchanges will result in incremental tax attributes and potential cash tax savings for Zeo. The associated liability for the TRA will be recorded as a decrease to additional paid-in capital in the condensed consolidated statement of changes in stockholders' deficit. As of September 30, 2025, the total unrecorded TRA liability is approximately $7.2 million, of which $4.6 million related to actual exchanges and $2.6 million related to hypothetical sale. In accordance with ASC Topic 450, "*Contingencies*," any changes to an existing TRA liability, including changes to the fair value measurement or to re-establish a TRA liability related to prior year exchanges, will be recorded as tax receivable agreement in other income (expense), net in the condensed consolidated statement of operations. Similarly, if utilization of the deferred tax assets subject to the TRA becomes more likely than not in the future, the Company will record a liability related to the TRA which will be recorded in the condensed consolidated statement of operations.

 ****

As of September 30, 2025, the prior investors of Sunergy own 43.0% of the common units of the Company. The OpCo A&R LLC Agreement provides among other things, a holder of corresponding economic, non-voting class B units of OpCo (the "Exchangeable OpCo Units") has the right to cause OpCo to redeem one or more of such Exchangeable OpCo Units, together with the cancellation of an equal number of shares of such holder's Zeo class V common stock, for shares of Zeo class A common stock on a one-for-one basis, or, at the election of Zeo (as manager of OpCo), cash, in each case, subject to certain restrictions set forth in the OpCo A&R LLC Agreement and the Charter. The OpCo A&R LLC Agreement also provides for mandatory OpCo Unit Redemptions in certain limited circumstances, including in connection with certain changes of control. Subject to certain conditions, the class A convertible OpCo preferred units are redeemable by Zeo and following the first anniversary of the Closing may be converted by the Sponsor into Exchangeable OpCo Units (and then would be immediately exchanged on a one-for-one basis, together with an equal number of accompanying shares of Zeo class V common stock, for shares Zeo class A common stock). The convertible OpCo preferred units have accruing distributions of 10% per annum and the Sponsor as holder thereof has certain consent rights over the taking of certain actions of OpCo and its subsidiaries. During the three and nine months ended September 30, 2025, the Company recognized $437,100 and $1,265,303, respectively, in OpCo class A preferred dividends. During the three and nine months ended September 30, 2025, the Company paid aggregate dividends of $621,063 to OpCo class A preferred unit holders.

The financial results of OpCo, LLC are consolidated with the Company with the redeemable non-controlling interests' share of the Company's net loss separately allocated.

**NOTE 12** **—STOCK-BASED COMPENSATION**

**<u>2024 Omnibus Incentive Plan</u>**

On March 6, 2024, the shareholders of ESGEN approved the Zeo Energy Corp. 2024 Omnibus Incentive Equity Plan (the "Incentive Plan"), which became effective upon the Closing. 3,220,400 of the outstanding shares of class A common stock of the Company (the "Plan Share Reserve") shall be available for awards under the Incentive Plan. Each Award granted under the Plan will reduce the Plan Share Reserve by the number of shares of common stock underlying the Award. Notwithstanding the foregoing, the Plan Share Reserve shall be automatically increased on the first day of the 2025 fiscal year through the 2029 fiscal year by a number of shares of common stock equal to the lesser of (i) the positive difference, if any, between 2% of the then-outstanding shares of common stock on the last day of the immediately preceding fiscal year, and (ii) a lower number of shares of common stock as may be determined by the Board.

The purpose of the Incentive Plan is to provide a means through which the Company and the other members of the Company and its subsidiaries (the "Company Group") may attract and retain key personnel and to provide a means whereby directors, officers, employees, consultants and advisors of the Company and the other members of the Company Group can acquire and maintain an equity interest in the Company, or be paid incentive compensation measured by reference to the value of common stock, thereby strengthening their commitment to the welfare of the Company Group and aligning their interests with those of the Company's stockholders.

 

***March 2024 Grant***

On March 13, 2024, the Company entered into an executive employment agreement with the Company's CEO. In addition to the CEO's annual salary and cash bonus, the CEO became eligible to receive certain grants of vested shares under the Incentive Plan as follows:

● 50,000 vested shares to be granted on the date that is 12 months after the grant date.

● 50,000 vested shares to be granted on the date that is 24 months after the grant date; and

● 50,000 vested shares to be granted on the date that is 35 months after the after the grant date.

The Company determined the grant date fair value per share was $6.97, a Level 1 measurement, by reference to the publicly traded stock price on March 13, 2024.

Further, if, within three (3) years of the effective date of the Closing, (i) the volume-weighted average price of shares of the publicly traded stock of the Company exceeds $7.50 for 20 or more days of any consecutive 30-day period, then the CEO will be granted vested equity from the Incentive Plan equal to 1% of the total issued and outstanding capital stock of the Company, (ii) the volume-weighted average price of shares of the publicly traded stock of the Company exceeds $12.50 for 20 or more days of any consecutive 30-day period, then the CEO will be granted additional vested equity from the Incentive Plan equal to 1% of the total issued and outstanding capital stock of the Company, (iii) and the volume-weighted average price of shares of the publicly traded stock of the Company exceeds $15.00 for 20 or more days of any consecutive 30-day period, then the CEO will be granted additional vested equity from the Incentive Plan equal to 1% of the total issued and outstanding capital stock of the Company.

The per unit fair value and derived service period for each tranche of performance based executive shares is included in the valuation of performance-based equity bonus awards as of March 13, 2024, as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Fair Value Summary** | **Tranche 1** | **Tranche 2** | **Tranche 3** |
| Tranche per unit fair value | $5.96 | $4.53 | $3.82 |
| Stock price on valuation date | $6.97 | $6.97 | $6.97 |
| Derived service period | 0.35 years | 1.19 years | 1.47 years |

---

During the three and nine months ended September 30, 2025, the Company recognized $269,530 and $1,554,202, respectively, in equity compensation expense related to these awards. As of September 30, 2025, the remaining unrecognized compensation expense was $505,086 and is expected to be recognized over the remaining 1.37-year vesting period.

***<u>February 2025 Grants</u>***

On February 5, 2025, the Company granted an aggregate of 790,000 restricted shares of class A common stock under the Incentive Plan to 10 employees and two executives. The restricted shares vest in three equal installments as follows.

● One-third (1/3) on the date that is six months following the grant date;

● One-third (1/3) on the date that is 18 months following the grant date; and

● One-third (1/3) on the date that is 30 months following the grant date.

On February 5, 2025, the Company granted an aggregate of 275,000 restricted shares of class A common stock under the Incentive Plan to eight employees. The restricted shares vest in three equal installments as follows.

● One-third (1/3) on the date that is 12 months following the grant date;

● One-third (1/3) on the date that is 24 months following the grant date; and

● One-third (1/3) on the date that is 36 months following the grant date.

The Company determined the grant date fair value per share was $2.57, a Level 1 measurement, by reference to the publicly traded stock price on February 5, 2025.

During the three and nine months ended September 30, 2025, the Company recognized $282,309 and $875,229, respectively, in equity compensation expense related to these awards. As of September 30, 2025, the remaining unrecognized compensation expense was $1,677,637 and is expected to be recognized over the remaining 2.35-year vesting period.

***<u>July 2025 Grants</u>***

On July 5, 2025, the Company granted an aggregate of 140,000 restricted shares of class A common stock under the Incentive Plan to four employees. The restricted shares vest in three equal installments as follows.

● One-third (1/3) on the date that is 12 months following the grant date;

● One-third (1/3) on the date that is 24 months following the grant date; and

● One-third (1/3) on the date that is 36 months following the grant date.

The Company determined the grant date fair value per share was $2.79, a Level 1 measurement, by reference to the publicly traded stock price on July 5, 2025.

During the three and nine months ended September 30, 2025, the Company recognized $31,034 in equity compensation expense related to these awards. As of September 30, 2025, the remaining unrecognized compensation expense was $359,566 and is expected to be recognized over the remaining 2.76-year vesting period.

 

 

***<u>Sun Managers, LLC Management Incentive Plan</u>***

Sun Managers intends to grant class B units (as defined in the SM LLCA) in Sun Managers through the Sun Managers, LLC Management Incentive Plan (the "Management Incentive Plan") adopted by Sun Managers to certain eligible employees or service providers of OpCo, Sunergy or their subsidiaries, in the discretion of Timothy Bridgewater, as manager of Sun Managers. Such class B units may be subject to a vesting schedule, and once such class B units become vested, there may be an exchange opportunity through which the grantees may request (subject to the terms of the Management Incentive Plan and the OpCo amended and restated limited liability company agreement in its entirely (the "OpCo A&R LLC Agreement")) the exchange of their class B units into Seller OpCo Units (together with an equal number of Zeo class V shares), which may then be converted into Zeo class A common Stock (subject to the terms of the Management Incentive Plan and the OpCo A&R LLC Agreement). Grants under the Management Incentive Plan will be made after ESGEN Closing.

Although Sun Managers is the legal issuer of the awards, all compensatory payments made by Sun Managers to individuals providing services to or for the benefit of the Company or its subsidiaries (including equity interests in Sun Managers) are treated as compensation paid by the Company under ASC Topic 718, "*Compensation – Stock Compensation*." In accordance with the OpCo A&R LLCA, the Company allocates 100% of all related expense and deduction items to Sun Managers. These compensatory payments are accounted for as capital contributions from Sun Managers to the Company, with no new equity units issued in return.

On March 31, 2025, Sun Managers LLC granted an aggregate of 875,000 restricted shares of Zeo class A common stock under the Management Incentive Plan to three employees and one executive. The restricted shares vested immediately upon grant. During the three and nine months ended September 30, 2025, the Company recognized $528,500 and $1,321,250, respectively, in equity compensation expense related to these awards.

On August 4, 2025, Sun Managers LLC granted an aggregate of 350,000 restricted shares of Zeo class A common stock under the Management Incentive Plan to two employees. The restricted shares vested immediately upon grant. During the three and nine months ended September 30, 2025, the Company recognized $840,000 in equity compensation expense related to these awards.

On August 13, 2025, Sun Managers LLC granted an aggregate of 168,500 restricted shares of Zeo class A common stock under the Management Incentive Plan to four employees. The restricted shares vested immediately upon grant. During the three and nine months ended September 30, 2025, the Company recognized $384,180 in equity compensation expense related to these awards.

On September 17, 2025, Sun Managers LLC granted an aggregate of 255,000 restricted shares of Zeo class A common stock under the Management Incentive Plan to three employees. The restricted shares vested immediately upon grant. During the three and nine months ended September 30, 2025, the Company recognized $288,150 in equity compensation expense related to these awards.

 

***<u>Seasonal Manager Stock Compensation Plan</u>***

Beginning January 1, 2025, certain eligible sales managers may earn shares of the Company's class A common stock under the Seasonal Manager Stock Compensation Plan, which operates under the umbrella of the Management Incentive Plan. Managers are eligible to earn 40 shares per kW installed for projects sold by the manager's organization, provided they exceed 1,500 kW installed during a calendar year, and as long as the manager sells 700kW the subsequent calendar year. The number of shares awarded may be reduced if the average price for Zeo stock during the quarter in which an installations are completed exceeds $5 per share, the number of shares granted per kW will be correspondingly decreased.

The managers become eligible to receive certain grants of vested shares under the Seasonal Manager Stock Compensation Plan as follows:

● 50% of the shares for which Manager becomes eligible during a calendar year will be granted in Q1 (prior to the end of March) of the following calendar year (the "Tranche 1 Grant") if Manager remains eligible at the time of the grant.

● The remaining 50% of the shares for which Manager becomes eligible during a calendar year are granted in the Q1 of the second year following the calendar year in which eligibility is earned (the "Tranche 2 Grant") if Manager remains eligible at the time of the grant.

On March 31, 2025, Sun Managers LLC granted an aggregate of 577,910 restricted shares of Zeo class A common stock under the Management Incentive Plan to 10 sales managers. The restricted shares vest in two equal installments as follows.

● One-half (1/2) immediately on the grant date; and

● One-half (1/2) on the date that is 12 months following the grant date.

During the three and nine months ended September 30, 2025, the Company recognized $109,975 and $655,082, respectively, in equity compensation expense related to these awards. As of September 30, 2025, the remaining unrecognized compensation expense was $217,564 and is expected to be recognized over the remaining 0.50-year vesting period.

**NOTE 13** **—RELATED PARTY TRANSACTIONS**

Some of the Company's customers financed their obligations with a related party, Solar Leasing, whose CEO is also the CEO of the Company. These arrangements are similar to those with other third-party lenders. As such, Solar Leasing deducts their financing fees and remits the net amount to the Company. For the three months ended September 30, 2025 and 2024, the Company recognized $7,017,019 and $2,328,704 of revenue, net of financing fees of $1,644,395 and $783,650, respectively, from these arrangements. For the nine months ended September 30, 2025 and 2024, the Company recognized $17,709,806 and $18,139,099 of revenue, net of financing fees of $6,739,848 and $7,767,491, respectively, from these arrangements. As of September 30, 2025, the Company had $465,047 of accounts receivable and $3,581,890 of contract assets due from related parties relating to these arrangements.

During the year ended December 31, 2024, Solar Leasing performed a fair-market-value assessment of its lease assets. As a result, Solar Leasing paid a discretionary rebate to the Company of $3,000,000 based on the excess of fair-market-value over the carrying value of its assets, primarily to optimize certain tax positions for its owners. The Company agreed to transfer the received rebate to White Horse Energy, LC ("White Horse Energy"), an entity wholly owned by the Company's CEO, in the form of convertible debt. Additionally, the Company guarantees the outstanding indebtedness of Solar Leasing (approximately $10 million) which results in the Company having a variable interest in Solar Leasing. The Company determined it was not the primary beneficiary as defined under ASC Topic 810, "*Consolidation*." Although the Company's CEO, wholly owns White Horse Energy, the Company does not have any control over White Horse Energy or Solar Leasing, nor any obligation to absorb losses from Solar Leasing. Based on the Company's reassessment, the flow of funds resulting from the discretionary rebate does not transfer control or economic exposure to the Company in a manner that would require consolidation. White Horse Energy remains the primary beneficiary of Solar Leasing, and no changes to the Company's financial statement presentation are required. For the three and nine months ended September 30, 2025, the Company recorded interest income of $66,472 and $189,938, respectively, included in other income, net in the accompanying condensed consolidated statements of operations. As of September 30, 2025, the principal balance of $3,000,000 is included in related party note receivable and the accrued interest balance of $114,393 is included in other assets – related parties in the accompanying condensed consolidated balance sheet.

In conjunction with the consummation of the ESGEN Business Combination on March 13, 2014, Zeo entered into a TRA with Opco and certain Opco members (the "TRA Holders"). Pursuant to the TRA, Zeo Energy Corp. is required to pay the TRA Holders 85% of the net cash savings, if any, in U.S. federal, state and local income and franchise tax (computed using simplifying assumptions to address the impact of state and local taxes) that the Company actually realizes (or is deemed to realize in certain circumstances) in periods after the ESGEN Business Combination. As of September 30, 2025, the total unrecorded TRA liability is approximately $7.2 million. If utilization of the deferred tax assets subject to the TRA becomes more likely than not in the future, the Company will record a liability related to the TRA which will be recognized as expense within its condensed consolidated statements of operations.

**NOTE 1** **4—NET LOSS PER SHARE**

Basic loss per share is calculated by dividing the net loss by the weighted-average number of class A common shares outstanding during each period. Diluted loss per share is calculated by adjusting the weighted-average number of class A common shares outstanding for the dilutive effect, if any, of common share equivalents. Common share equivalents whose effect would be antidilutive are not included in diluted loss per share. The Company uses the treasury stock method to determine the dilutive effect, which assumes that all class A common share equivalents have been exercised at the beginning of the period and that the funds obtained from those exercises were used to repurchase class A common shares at the average closing market price during the period. As of September 30, 2025 and 2024, there were 41,115,187 and 49,030,000, respectively, potential common share equivalents from convertible OpCo class A preferred units, exchangeable OpCo class B units, convertible notes, warrants, and restricted stock awards excluded from the diluted loss per share calculations as their effect is anti-dilutive.

The following table presents the computation of the basic and diluted income per share of class A common stock for the three months and nine months ended September 30, 2025 and 2024:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended <br> September 30,** | **Three Months Ended <br> September 30,** | **Nine Months Ended <br> September 30,** | **Nine Months Ended <br> September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| **Numerator** |  |  |  |  |
| Net loss attributable to class A common stockholders | $(3225020) | $(424262) | $(12002121) | $(2233543) |
| **Denominator** |  |  |  |  |
| Weighted-average class A common shares outstanding – basic and diluted | 27307260 | 5053942 | 22489940 | 3696721 |
| Loss per class A common share – basic and diluted | $(0.12) | $(0.08) | $(0.53) | $(0.60) |

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**NOTE 15** **—INCOME TAXES**

The Company has calculated the provision for income taxes during the interim reporting period by applying an estimate of the Annual Effective Tax Rate (AETR) for the full fiscal year to "ordinary" income or loss (pretax income or loss excluding unusual or infrequently occurring discrete items) for the reporting period. Our effective tax rate (ETR) from continuing operations was a 2.7% provision and a 1.5% benefit for the three months ended September 30, 2025 and 2024, respectively, and a 2.2% provision and a 2.7% benefit for the nine months ended September 30, 2025 and 2024, respectively. The ETR for the three and nine months ended September 30, 2025 differs from statutory rates primarily due to the non-controlling interest portion of ESGEN Opco, LLC, which is a partnership for federal tax purposes and a change in valuation allowance. Additionally, the Company determined that the deferred tax assets are not more likely than not to be realized based on all available evidence as of the current quarter and recorded a valuation allowance on deferred tax assets. The ETR for the three and nine months ended September 30, 2024 differs from statutory rates primarily due to the non-controlling interest portion of ESGEN Opco, LLC, which is a partnership for federal tax purposes.

The components of the deferred income tax assets and liabilities were as follows:

---

| | | |
|:---|:---|:---|
|  | **September 30,<br> 2025** | **December 31,<br> 2024** |
| Other Asset assets: |  |  |
| &nbsp;&nbsp;&nbsp;Deferred tax assets | $6444972 | $661904 |
| &nbsp;&nbsp;&nbsp;Valuation allowance | (6444972) | - |
| Net deferred tax asset | $- | $661904 |
| Deferred tax liabilities | - | (423413) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net deferred tax assets and liabilities | $- | $238491 |

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**NOTE 16** **—SUBSEQUENT EVENTS**

On October 30, 2025, the Company issued 1,851,851 shares of Zeo class A common stock upon the conversion of the LHX convertible promissory note totaling $2.5 million.

Effective on October 31, 2025, the Company's board of directors and audit committee, approved the dismissal of Grant Thornton LLP, the Company's independent registered public accounting firm, and approved the appointment of Tanner LLC as the Company's independent registered public accounting firm.

On November 5, 2025, the Company granted an aggregate of 70,000 restricted shares of class A common stock under the Incentive Plan to seven employees. The restricted shares vest in equal installments over three years.

On November 6, 100,000 class A common shares were issued in exchange for OpCo class B units and corresponding class V common shares.

**Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations**

References to the "Company," "our," "us" or "we" refer to Zeo Energy Corp. The following discussion and analysis of the Company's financial condition and results of operations should be read in conjunction with the unaudited condensed consolidated financial statements and the notes thereto contained elsewhere in this Quarterly Report on Form 10-Q (this "Quarterly Report"). Certain information contained in the discussion and analysis set forth below includes forward-looking statements that involve risks and uncertainties.

**Cautionary Note Regarding Forward-Looking Statements**

 

*This Quarterly Report on Form 10-Q includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). We have based these forward-looking statements on our current expectations and projections about future events. These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions about us that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "may," "should," "could," "would," "expect," "plan," "anticipate," "believe," "estimate," and "continue," or the negative of such terms or other similar expressions. Such statements include, but are not limited to, possible business combinations and the financing thereof, and related matters, as well as all other statements other than statements of historical fact included in this Form 10-Q. Factors that might cause or contribute to such a discrepancy include, but are not limited to, those described in our other SEC filings. Except as expressly required by applicable securities law, we disclaim any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.*

**Overview**

Our company and personnel are passionate about delivering cost savings and increased independence and reliability to energy consumers. Our mission is to expedite the country's transition to renewable energy by offering our customers an affordable and sustainable means of achieving energy independence. We are a vertically integrated company offering energy solutions and services that include sale, design, procurement, installation, and maintenance of residential solar energy systems. Many of our solar energy system customers also purchase other energy efficient-related equipment or services or roofing services from us. The majority of our customers are located in Florida, Texas, Arkansas, Missouri, Ohio, and Illinois, and we have an expanding base of customers in California, Colorado, Minnesota, Utah, and Virginia. Sunergy was created on October 1, 2021 through the Contribution of Sun First Energy, LLC, a rapidly growing solar sales management company, and Sunergy Solar, LLC, a large solar installation company based in Florida, to Sunergy Renewables, LLC.

We believe that we have built (and continue to build) the infrastructure and capabilities necessary to rapidly acquire and serve customers in a low-cost and scalable manner. Today, our scalable regional operating platform provides us with a number of advantages, including the marketing of our solar service offerings through multiple channels, including our diverse sales partner network and direct-to-consumer vertically integrated sales and installation operations. We believe that this multi-channel model supports rapid sales and installation growth, allowing us to achieve capital-efficient growth in the regional markets we serve.

Since our founding, we have continued to invest in a platform of services and tools to enable large scale operations for us and our partner network, which includes sales partners, installation partners and other strategic partners. The platform includes processes and software, as well as the capacity for the fulfillment and acquisition of marketing leads. We believe our platform empowers our in-house sales team and external sales dealers to profitably serve our regional and underpenetrated markets and helps us compete effectively against larger, more established industry players without making significant investment in technology and infrastructure.

We have focused to date on a simple, capital light business strategy utilizing, as of September 30, 2025, approximately 280 sales agents and approximately 12 independent sales dealers to produce our sales pipeline. We engineer and design projects and process building permit applications on behalf of our customers to timely install their systems and assist their connections to the local utility power grid. Most of the equipment we install is drop-shipped to the installation site by our regional distributors, requiring minimal inventory to be held by the Company during any given period. We depend on our distributors to timely handle logistics and related requirements in moving equipment to the installation sites. In addition to our main offering of residential solar energy systems, we sell and install products such as roofing, insulation, energy efficient appliances and battery storage systems for the residential market.

Our core solar service offerings are paid for by customer purchases and financed through either third-party long-term lenders or third-party operators who offer leasing products that provide customers with simple, predictable pricing for solar energy that is insulated from rising retail electricity prices. Most of our customers finance their purchases with affordable loans or leases that require minimal or no upfront capital or down payment.

**Recent Developments**

On July 1, 2025, the Company converted $2,547,877 of outstanding accounts payable with a vendor into a loan payable with the same vendor. The loan bears interest at an annual rate of 18% (1.5% monthly) and provides for scheduled principal payments beginning in July 2025, with maturity on August 22, 2025. The transaction reduced the Company's accounts payable and established a formal financing arrangement under the stated terms. The loan, including accrued interest, was repaid during the period.

***Heliogen Acquisition***

On May 28, 2025, we entered into a plan of merger and reorganization agreement with Heliogen, a renewable-energy technology company that provides solutions for delivering low-carbon energy production by combining commercially proven solar technologies with thermal systems and storage expertise. The transaction was completed on August 8, 2025, under which Heliogen became a wholly owned subsidiary of the Company.

The total consideration transferred consisted entirely of our class A common stock, issued to Heliogen shareholders at an exchange ratio of 0.9591 shares of our class A common stock for each share of Heliogen common stock, resulting in the issuance of 6,217,612 class A common shares. No contingent consideration was included. In connection with the merger, all outstanding Heliogen SPAC warrants and RSUs were automatically accelerated and fully vested and were settled in the same equity consideration, net of applicable tax withholding. All stock options and commercial warrants were out-of-the-money and canceled with no value.

We accounted for the Heliogen acquisition using the acquisition method of accounting in accordance with ASC Topic 805, "*Business Combinations*," and allocated the purchase price to the assets acquired and liabilities assumed based on their estimated fair values at the acquisition date, with the excess of purchase price over the estimated fair value of the net assets acquired recorded as goodwill.

**Key Operating and Financial Metrics and Outlook**

We regularly review a number of metrics, including the following key operating and financial metrics, to evaluate our business, measure our performance, identify trends in our business, prepare financial projections and make strategic decisions. We believe the operating and financial metrics presented below are useful in evaluating our operating performance, as they are similar to measures by our public competitors and are regularly used by security analysts, institutional investors and other interested parties in analyzing operating performance and prospects. Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP measures, as they are not financial measures calculated in accordance with GAAP and should not be considered as substitutes for net (loss) income or net (loss) income margin, respectively, calculated in accordance with GAAP. See *"Non-GAAP Financial Measures*" for additional information on non-GAAP financial measures and a reconciliation of these non-GAAP measures to the most comparable GAAP measures.

The following table sets forth these metrics for the periods presented:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended <br> September 30,** | **Three Months Ended <br> September 30,** | **Nine Months Ended <br> September 30,** | **Nine Months Ended <br> September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Net revenues | $23896448 | $19657905 | $50782073 | $54596333 |
| Gross profit | 13707389 | 9587229 | 28085826 | 23176906 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gross margin | 57.4% | 48.8% | 55.3% | 42.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;Contribution profit | 7627568 | 4477319 | 7593178 | 9714754 |
| Contribution margin | 31.9% | 22.8% | 15.0% | 17.8% |
| Loss from operations | (1980509) | (2982851) | (18345413) | (9694269) |
| Net loss | (1869472) | (2872424) | (17868299) | (8736845) |
| Adjusted EBITDA | 1956127 | (241712) | (1924958) | 89270 |
| &nbsp;&nbsp;Adjusted EBITDA margin | 8.2% | (1.2)% | (3.8)% | 0.2% |

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*Gross Profit and Gross Margin*

 

We define gross profit as revenue, net less cost of goods sold and depreciation and amortization related to cost of goods sold, and define gross margin, expressed as a percentage, as the ratio of gross profit to revenue, net. See "— *Non-GAAP Financial Measures*" for a reconciliation of Gross Profit and Gross Margin.

*Contribution Profit and Contribution Margin*

We define contribution profit as revenue, net less direct costs of revenue, commissions expense and depreciation and amortization, and define contribution margin, expressed as a percentage, as the ratio of contribution profit to revenue, net. Contribution profit and margin can be used to understand our financial performance and efficiency and allows investors to evaluate our pricing strategy and compare against competitors. Our management uses these metrics to make strategic decisions, identify areas for improvement, set targets for future performance and make informed decisions about how to allocate resources going forward. Contribution margin reflects our Contribution profit as a percentage of revenues. See "— *Non-GAAP Financial Measures*" for a reconciliation of Gross Profit to Contribution Profit and Contribution Margin.

 

*Adjusted EBITDA and Adjusted EBITDA Margin*

We define Adjusted EBITDA, a non-GAAP financial measure, as earnings (loss) before interest expense, income tax expense (benefit), depreciation and amortization, other income (expenses), net, and stock compensation, as adjusted to exclude merger transaction related expenses. Adjusted EBITDA margin reflects our Adjusted EBITDA as a percentage of revenues. See "— *Non-GAAP Financial Measures*" for a reconciliation of GAAP net loss to Adjusted EBITDA and Adjusted EBITDA Margin.

**Key Factors that May Influence Future Results of Operations**

Our financial results of operations may not be comparable from period to period due to several factors. Key factors affecting the results of our operations are summarized below.

*Expansion of Residential Sales into New Markets*. Our future revenue growth is, in part, dependent on our ability to expand our product offerings and services in the select residential markets where we operate in Florida, Texas, Arkansas, Missouri, Illinois, Virginia and Ohio. We primarily generate revenue from our product offerings and services in the residential housing market. To continue our growth, we intend to expand our presence in the residential market into additional states based on markets underserved by national sales and installation providers that also have favorable incentives and net metering policies. We believe that our entry into new markets will continue to facilitate revenue growth and customer diversification.

*Expansion of New Products and Services*. In 2025, we continued our roofing replacements to facilitate our solar installations and to repair rooftops on homes in Florida damaged by severe weather. We plan to expand our roofing business in all markets we enter in the future. Roofing facilitates a faster processing time for our solar installations in cases where the customer is in need of a roof replacement prior to installing a solar system. In addition, to provide more financing options for our prospective residential solar energy customers, we have programs in place that allow our customers to choose a leasing option to finance their systems from a third party.

The acquisition of Heliogen aligns with our strategy to expand our clean-energy platform beyond residential markets into large-scale commercial and industrial energy generation and storage. Additionally, Heliogen is expected to complement our existing solar operations, create operational synergies, and broaden market reach. With the acquisition of Heliogen, we intend to enter into agreements to provide engineering services to support long-duration energy storage projects.

*Adding New Customers and Expansion of Sales with Existing Customers*. We intend to increase our in-house sales force and external sales dealers in order to target new customers in the Southern U.S. regional residential markets. We provide competitive compensation packages to our in-house sales teams and external sales dealers, which incentivizes the acquisition of new customers.

*Inflation.* We are seeing an increase in the costs of labor and components as the result of higher inflation rates. In particular, we are experiencing an increase in raw material costs and supply chain constraints, and trade tariffs imposed on certain products from China. We also see an increase in materials used to achieve the required minimum domestic content to maximize incentive tax credits. These increases in material and labor costs may continue to put pressure on our operating margins. We do not have information that allows us to quantify the specific amount of cost increases attributable to inflationary pressures.

*Interest rates.* Interest rates increased sharply in 2022 but have been relatively stable since. The majority of homeowners have opted to enter into a lease contract with a third-party operator as means of financing the installation of a solar system. The lease contract provides a lower monthly cost to the homeowner than a conventional loan product in a higher interest rate environment. We do not have information that allows us to quantify the adverse effects attributable to increased interest rates.

*Managing our Supply Chain*. We rely on contract manufacturers and suppliers to produce our components. Our suppliers are generally meeting our materials needs. Our ability to grow depends, in part, on the ability of our contract manufacturers and suppliers to provide high quality services and deliver components and finished products on time and at reasonable costs. In the event we are unable to mitigate the impact of delays and/or price increases in raw materials, electronic components and freight, it could delay the installation of our systems, which would adversely impact our cash flows and results of operations, including revenue and contribution margin.

**Components of Condensed Consolidated Statements of Operations**

***Net Revenues***

Our primary source of revenue is the sale of our residential solar systems. Our systems are fully functional at the time of installation and require an inspection prior to interconnection to the utility power grid. We sell our systems primarily direct to end user customers for use in their residences. Upon installation inspection, we satisfy our performance obligation and recognize revenue. Most of the Company's customers finance their obligations with third parties. Most finance arrangements are by way of a lease contract with a third-party operator. Some customers utilize debt financing. In these situations, the finance company deducts their financing fees and remits the net amount to the Company. Revenue is recorded net of these financing fees (and/or dealer fees).

The volume of sales and installations of rooftop solar systems, our primary product, increase from April to September when a majority of our sales teams are most active in our areas of service. In addition to sales of solar systems, "adders" or accessories to a sale may include roofing, energy efficient appliances, upgraded insulation and/or energy storage systems. All adders consisted of less than 10% of the total revenues, net in the nine months ended September 30, 2025 and 2024.

Our revenue is affected by changes in the volume, system size and average selling prices of our solutions and related accessories, supply and demand, sales incentives and fluctuating interest rates that increase or decrease the monthly payments for customers purchasing systems through third party financing. Less than 5% of our sales were paid in cash by the customer in each of the nine months ended September 30, 2025 and 2024. Our revenue growth is dependent on our ability to compete effectively in the marketplace by remaining cost competitive, developing and introducing new sales teams within existing and new territories, scaling our installation teams to keep up with demand and maintaining a strong internal operations team to process orders while working with building departments and utilities to permit and interconnect our customers to the utility grid.

Revenues declined during the nine months ended September 30, 2025 because of the effect of higher interest rates on the consumer financing rates. The increased cost of consumer lending has reduced the advantage provided by financed solar power relative to standard utility costs, which has negatively affected the demand for our products.

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***Cost of Revenues***

Cost of revenues consists primarily of product costs (including solar panels, inverters, metal racking, connectors, shingles, wiring, warranty costs and logistics costs), installation labor and permitting costs.

Cost of revenues decreased during the nine months ended September 30, 2025 in association with a reduction in revenues.

Net revenues less cost of revenues may vary from period-to-period and is primarily affected by our average selling prices, financing or dealer fees, fluctuations in equipment costs and our ability to effectively and timely deploy our field installation teams to project sites once permitting departments have approved the design and engineering of systems on customer sites.

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***Operating Expenses***

Operating expenses consist of sales and marketing and general and administrative expenses. Personnel-related costs are the most significant component of each of these expense categories and include salaries, benefits and payroll taxes.

Sales and marketing expenses consist primarily of personnel-related expenses including sales commissions, as well as advertising, travel, trade shows, marketing, and other indirect costs. We expect to continue to make the necessary investments to enable us to execute our strategy to increase our market penetration geographically and enter into new markets by expanding our base sales teams, installers and strategic sales dealer and partner network.

General and administrative expenses consist primarily of personnel-related expenses for our non-direct labor operations, executive, finance, human resources, information technology, software, facilities costs and fees for professional services. Fees for professional services consist primarily of outside legal, accounting and information technology consulting costs.

Depreciation and amortization consist primarily of depreciation of our vehicles, furniture and fixtures, software and amortization of our acquired intangibles.

***Other income (expenses), net***

Other income (expenses), net primarily consists of change in fair value of warrant liabilities and interest expense and fees under our equipment and vehicle term loans. It also includes interest income on our cash balances, and accrued interest

***Results of Operations***

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***Three Months Ended September 30, 2025 Compared to Three Months Ended September 30, 2024***

The following table sets forth a summary of our condensed consolidated statements of operations for the periods presented:

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| | | | |
|:---|:---|:---|:---|
|  | **Three Months ended<br> September 30,** | **Three Months ended<br> September 30,****Change** | **Change** |
|  | **2025** | **2024** | **%** |
| Net revenues | $23896448 | $19657905 | 21.6% |
| Costs and expenses: |  |  |  |
| &nbsp;&nbsp;&nbsp;Cost of revenues | 10053666 | 9787350 | 2.7% |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 249447 | 499876) | (50.1)% |
| &nbsp;&nbsp;&nbsp;Sales and marketing | 9588385 | 5202525 | 84.3% |
| &nbsp;&nbsp;&nbsp;General and administrative | 5985459 | 7151005) | (16.3)% |
| Total operating expenses | 25876957 | 22640756 | 14.3% |
| Loss from operations | (1980509) | (2982851) | (33.6)% |
| Other income (expense): |  |  |  |
| &nbsp;&nbsp;&nbsp;Other income, net | 165308 | 137508 | 20.2% |
| &nbsp;&nbsp;&nbsp;Interest expense | (129719) | (209227) | (38.0)% |
| &nbsp;&nbsp;&nbsp;Gain on change in fair value of warrant liabilities | 124200 | 138000) | (10.0)% |
| Total other income | 159789 | 66281 | 141.1% |
| &nbsp;&nbsp;&nbsp;Net loss before taxes | $(1820720) | $(2916570) | (37.6)% |

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*Net Revenues*

Net revenues increased by approximately $4.2 million from $19.7 million for the three months ended September 30, 2024 to $23.9 million for the three months ended September 30, 2025. The primary reason for the increase is due to increased installations during the current period and a new pricing agreement with Solar Leasing entered into during the fourth quarter of 2024. During the three months ended September 30, 2025, there were no revenues generated from Heliogen.

*Cost of Revenues*

Cost of revenues increased by $0.3 million from $9.8 million for the three months ended September 30, 2024 to $10.1 million for the three months ended September 30, 2025. The increase was a result of the increase in installation revenues. As a percentage of revenue, cost of revenues declined from 49.8% for the three months ended September 30, 2024 to 42.1% for the three months ended September 30, 2025. This decline was driven by an increase in the average selling price of our contracts to our customers compared to the prior year as a result of a new pricing agreement with Solar Leasing entered into during the fourth quarter of 2024.

 

*Depreciation and Amortization*

Depreciation and amortization decreased by $0.3 million, from $0.5 million for the three months ended September 30, 2024 to $0.2 million for the three months ended September 30, 2025. The decrease was primarily due to less amortization of intangible assets during the current period.

 

*General and Administrative Expenses*

General and administrative expenses decreased by $1.2 million from $7.2 million for the three months ended September 30, 2024 to $6.0 million for the three months ended September 30, 2025. The decrease was primarily due to decreased stock-based compensation expenses and bad debt expense offset by increased payroll costs associated with additional staffing, higher professional fees associated with being a public company, and new costs as a result of the acquisition of Heliogen.

*Sales and Marketing*

Sales and marketing expenses increased by $4.4 million from $5.2 million for the three months ended September 30, 2024 to $9.6 million for the three months ended September 30, 2025. The increase was primarily a result of increased stock-based compensation expense and efforts to expand our selling process to include year-round sales through digital lead generation.

 

*Other Income (Expense), net*

 

Other income (expense), net increased by $0.1 million from $0.1 million for the three months ended September 30, 2024 to $0.2 million for the three months ended September 30, 2025. The increase was primarily due to increased other income, offset by less interest expense during the current period.

***Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024***

The following table sets forth a summary of our condensed consolidated statements of operations for the periods presented:

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| | | | |
|:---|:---|:---|:---|
|  | **Nine Months ended<br> September 30,** | **Nine Months ended<br> September 30,****Change** | **Change** |
|  | **2025** | **2024** | **%** |
| Net revenues | $50782073 | $54596333) | (7.0)% |
| Costs and expenses: |  |  |  |
| &nbsp;&nbsp;&nbsp;Cost of revenues | 22127832 | 30805155) | (28.2)% |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 8325628 | 1413074 | 489.2% |
| &nbsp;&nbsp;&nbsp;Sales and marketing | 17354517 | 16178375 | 7.3% |
| &nbsp;&nbsp;&nbsp;General and administrative | 21319509 | 15893998 | 34.1% |
| Total operating expenses | 69127486 | 64290602 | 7.5% |
| Loss from operations | (18345413) | (9694269) | 89.2% |
| Other income (expense): |  |  |  |
| &nbsp;&nbsp;&nbsp;Other income, net | 300999 | 188329 | 59.8% |
| &nbsp;&nbsp;&nbsp;Interest expense | (130007) | (294257) | (55.8)% |
| &nbsp;&nbsp;&nbsp;Gain on change in fair value of warrant liabilities | 691380 | 828000) | (16.5)% |
| Total other income | 862372 | 722072 | 19.4% |
| &nbsp;&nbsp;&nbsp;Net loss before taxes | $(17483041) | $(8972197) | 94.9% |

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*Net Revenues*

Net revenues decreased by approximately $3.8 million from $54.6 million for the nine months ended September 30, 2024 to $50.8 million for the nine months ended September 30, 2025. The primary reason for the decrease in revenue was a decrease in installations during the current period, offset by a new pricing agreement with Solar Leasing entered into during the fourth quarter of 2024. The comparative period also benefited from deferred revenue at the end of 2023, that was recognized in the first quarter of 2024. During the nine months ended September 30, 2025, there were no revenues generated from Heliogen.

*Cost of Revenues*

Cost of revenues decreased by $8.7 million from $30.8 million for the nine months ended September 30, 2024 to $22.1 million for the nine months ended September 30, 2025. The decrease was primarily a result of the decrease in installation revenues. As a percentage of revenue, cost of revenues improved from 56.4% for the nine months ended September 30, 2024 to 43.6% for the nine months ended September 30, 2025. This decline was driven by an increase in the average selling price of our contracts to our customers compared to the prior year as a result of a new pricing agreement with Solar Leasing entered into during the fourth quarter of 2024 and another third-party pricing agreement entered into during the second quarter of 2024.

 

*Depreciation and Amortization*

Depreciation and amortization increased by $6.9 million, from $1.4 million for the nine months ended September 30, 2024 to $8.3 million for the nine months ended September 30, 2025. The increase was primarily due to an increase in the amortization of the cost of acquired contracts from the Lumio Asset Purchase Agreement.

 

 

*General and Administrative Expenses*

General and administrative expenses increased by $5.4 million from $15.9 million for the nine months ended September 30, 2024 to $21.3 million for the nine months ended September 30, 2025. The increase was primarily due to an increase in payroll costs associated with additional staffing, increased bad debt expense, higher professional fees associated with being a public company, and new costs as a result of the acquisition of Heliogen offset by decreased stock-based compensation expense.

*Sales and Marketing*

Sales and marketing expenses increased by $1.2 million from $16.2 million for the nine months ended September 30, 2024 to $17.4 million for the nine months ended September 30, 2025. The increase was primarily a result of increased stock-based compensation expense and efforts to expand our selling process to include year-round sales through digital lead generation.

 

*Other Income, net*

 

Other income, net increased by $0.2 million from $0.7 million for the nine months ended September 30, 2024 to $0.9 million for the nine months ended September 30, 2025. The increase was primarily due to increased other income and less interest expense during the current period.

**Liquidity and Capital Resources**

Our primary source of funding to support operations have historically been from cash flows from operations and financing activities. Our primary short-term requirements for liquidity and capital are to fund general working capital and capital expenses. Our principal long-term working capital uses include ensuring revenue growth, expanding our sales and marketing efforts and potential acquisitions.

As of September 30, 2025 and December 31, 2024, our cash and cash equivalents balance were $3,915,900 and $5,634,115, respectively. The Company maintains its cash in checking, savings, and money market accounts.

Our future capital requirements depend on many factors, including our revenue growth rate, the timing and extent of our spending to support further sales and marketing, the degree to which we are successful in launching new business initiatives and the cost associated with these initiatives, and the growth of our business generally.

We currently believe that our existing cash and working capital balances, anticipated future cash flows from operations and financing activities will be sufficient to meet our currently contemplated business needs for the next twelve months. In the event we pursue and complete significant transactions or acquisitions in the future, additional funds may be required to meet our strategic needs, which may require us to raise additional funds in the debt or equity markets. If we are unable to raise additional capital on acceptable terms when needed, our business, results of operations and financial condition would be materially and adversely affected.

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***Cash Flows***

The following table summarizes our cash flows for the periods presented:

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| | | | |
|:---|:---|:---|:---|
|  | **For the Nine Months Ended<br> September 30,** | **For the Nine Months Ended<br> September 30,** | **For the Nine Months Ended<br> September 30,** |
|  | **2025** | **2024** | **Change** |
| Net cash used in operating activities | $(11132921) | $(12189535) | $(1056614) |
| Net cash provided by (used in) investing activities | 13548606 | (285067) | 13833673 |
| Net cash provided by (used in) financing activities | (4129005) | 8782358 | (12911363) |

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***Cash Flows from Operating Activities***

Net cash used in operating activities was approximately $11.1 million during the nine months ended September 30, 2025 compared to a net cash used in operating activities of approximately $12.2 million during nine months ended September 30, 2024. The $1.1 million decrease in cash used was primarily driven by positive cash flows from accounts receivable ($4.7 million), prepaids and other current assets ($1.7 million), accounts payable ($2.9 million), contract liabilities ($4.5 million), and contract liabilities – related parties ($1.2 million) offset by negative cash flows from a change in contract assets ($5.7 million), contract assets – related parties ($3.6 million), accrued expenses and other current liabilities – related parties ($1.4 million), increase in net loss ($9.1 million) and less stock compensation expense ($0.8 million), offset by increases in non-cash expenses for depreciation and amortization ($6.9 million) and the provision for credit losses ($0.3 million).

***Cash Flows from Investing Activities***

Net cash provided by investing activities was approximately $13.5 million for the nine months ended September 30, 2025, relating to the cash acquired in the acquisition of Heliogen, offset by purchases of property and equipment. Net cash used in investing activities for the nine months ended September 30, 2024 was approximately $0.3 million, relating to purchases of property and equipment.

***Cash Flows from Financing Activities***

Net cash used in financing activities was approximately $4.1 million for the nine months ended September 30, 2025, primarily relating to the payment of dividends to OpCo class A preferred unit holders and repayments of debt and finance leases. Net cash provided by financing activities was approximately $8.8 million for the nine months ended September 30, 2024, primarily relating to net cash acquired from the issuance of convertible preferred stock of $9.2 million offset by repayments of debt and finance leases, and distributions of stockholders.

***Current Indebtedness***

The Company has utilized internally generated positive cashflow to grow the business. Other than approximately $2.5 million convertible note, the Company has only approximately $0.1 million of debt on service trucks and vehicles.

**Non-GAAP Financial Measures**

The non-GAAP financial measures in this Quarterly Report have not been calculated in accordance with GAAP and should be considered in addition to results prepared in accordance with GAAP and should not be considered as a substitute for, or superior to, GAAP results. In addition, Adjusted EBITDA and Adjusted EBITDA Margin should not be construed as indicators of our operating performance, liquidity or cash flows generated by operating, investing and financing activities, as there may be significant factors or trends that they fail to address. We caution investors that non-GAAP financial information, by its nature, departs from traditional accounting conventions. Therefore, its use can make it difficult to compare our current results with our results from other reporting periods and with the results of other companies.

Our management uses these non-GAAP financial measures, in conjunction with GAAP financial measures, as an integral part of managing our business and to, among other things: (i) monitor and evaluate the performance of our business operations and financial performance; (ii) facilitate internal comparisons of the historical operating performance of our business operations; (iii) facilitate external comparisons of the results of our overall business to the historical operating performance of other companies that may have different capital structures and debt levels; (iv) review and assess the operating performance of our management team; (v) analyze and evaluate financial and strategic planning decisions regarding future operating investments; and (vi) plan for and prepare future annual operating budgets and determine appropriate levels of operating investments. We believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends, and in comparing our financial results with other companies in our industry, many of which present similar non-GAAP financial measures to investors.

 

 

*Contribution Profit and Contribution Margin*

 

We define contribution profit as revenue, net less direct costs of revenue, commissions expense and depreciation and amortization, and define contribution margin, expressed as a percentage, as the ratio of contribution profit to revenue, net. Contribution profit and margin can be used to understand our financial performance and efficiency and allows investors to evaluate our pricing strategy and compare against competitors. Our management uses these metrics to make strategic decisions, identify areas for improvement, set targets for future performance and make informed decisions about how to allocate resources going forward. Contributions margin reflects our Contribution profit as a percentage of revenues.

The following table provides a reconciliation of gross profit to contribution profit for the periods presented:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended <br> September 30,** | **Three Months Ended <br> September 30,** | **Nine Months Ended <br> September 30,** | **Nine Months Ended <br> September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Net revenues | $23896448 | $19657905 | $50782073 | $54596333 |
| Cost of revenues (exclusive of depreciation and amortization): | 10053666 | 9787350 | 22127832 | 30805155 |
| Less: depreciation and amortization related to cost of revenues | 135393 | 283326 | 568415 | 614272 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total gross profit | $13707389 | $9587229 | $28085826 | $23176906 |
| Adjustments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 114054 | 216550 | 7757213 | 798802 |
| &nbsp;&nbsp;&nbsp;Commissions expense | 5965767 | 4893360 | 12735435 | 12663350 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Contribution profit | $7627568 | $4477319 | $7593178 | $9714754 |
| Gross margin | 57.4% | 48.8% | 55.3% | 42.5% |
| Contribution margin | 31.9% | 22.8% | 15.0% | 17.8% |

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*Adjusted EBITDA*

We define Adjusted EBITDA, a non-GAAP financial measure, as net income (loss) before interest and other income (expenses), net, income tax expense, depreciation and amortization, as adjusted to exclude merger and acquisition expenses ("*M&A expenses*"). We utilize Adjusted EBITDA as an internal performance measure in the management of our operations because we believe the exclusion of these non-cash and non-recurring charges allow for a more relevant comparison of our results of operations to other companies in our industry. Adjusted EBITDA should not be viewed as a substitute for net (loss) income calculated in accordance with GAAP, and other companies may define Adjusted EBITDA differently. Adjusted EBITDA margin reflects our Adjusted EBITDA as a percentage of revenues. The following table provides a reconciliation of net (loss) income to Adjusted EBITDA for the periods presented:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended <br> September 30,** | **Three Months Ended <br> September 30,** | **Nine Months Ended <br> September 30,** | **Nine Months Ended <br> September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Net loss | $(1869472) | $(2872424) | $(17868299) | $(8736845) |
| Adjustments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Other income, net | (165308) | (137508) | (300999) | (188329) |
| &nbsp;&nbsp;&nbsp;Interest expense | 129719 | 209227 | 130007 | 294257 |
| &nbsp;&nbsp;&nbsp;Gain on change in fair value of warrant liabilities | (124200) | (138000) | (691380) | (828000) |
| &nbsp;&nbsp;&nbsp;Income tax provision (benefit) | 48752 | (44146) | 385258 | (235352) |
| &nbsp;&nbsp;&nbsp;Stock-based compensation | 2733674 | 1503129 | 6069014 | 7101818 |
| &nbsp;&nbsp;&nbsp;Acquisition-related expenses | 953515 | 738134 | 2025813 | 1268647 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 249447 | 499876 | 8325628 | 1413074 |
| Adjusted EBITDA | $1956127 | $(241712) | $(1924958) | $89270 |
| Net loss margin | (7.8)% | (14.6)% | (35.2)% | (16.0)% |
| Adjusted EBITDA margin | 8.2% | (1.2)% | (3.8)% | 0.2% |

---

**Critical Accounting Estimates**

For a description of our critical accounting policies and estimates, refer to "Management's Discussion and Analysis of Financial Condition and Results of Operations – Critical Accounting Estimates" in our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on May 28, 2025. There have been no material changes to our critical accounting policies and estimates since our Annual Report on Form 10-K for the year ended December 31, 2024.

**Item 3. Quantitative and Qualitative Disclosures about Market Risk**

As a smaller reporting company, we are not required to provide the information required by this Item.

**Item 4. Controls and Procedures**

**Evaluation of Disclosure Controls and Procedures**

Under the supervision and with the participation of management, including our principal executive officer and principal financial officer, we conducted an evaluation of the effectiveness of our disclosure controls and procedures as of September 30, 2025, as such term is defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934 (the "Exchange Act"). As a result of this evaluation, our principal executive officer and principal financial officer have concluded that there were material weaknesses in the Company's internal control over financial reporting, related to ineffective controls over information and communication and period end financial disclosure and reporting processes, including not timely performing certain reconciliations and the completeness and accuracy of those reconciliations, and lack of effectiveness of controls over accurate accounting and financial reporting and reviewing the underlying financial statement elements, and recording incorrect journal entries that also did not have the sufficient review and approval. The Company's management also did not design and maintain effective controls over the calculation of earnings per share and the classification of the reinvestment of interest and dividend income in the statement of cash flows. These material weaknesses in internal control over financial reporting have been disclosed in the company's quarterly reports on Form 10-Q for 2024 and 2025 and annual report on Form 10-K for the year ended December 31, 2024. We are still in the process of remediating, our disclosure controls and procedures continued not to be effective as of September 30, 2025. Notwithstanding the identified material weaknesses, management, including our principal executive officer and principal financial officer, believes the condensed consolidated financial statements included in this report fairly represent, in all material respects, our financial condition, results of operations and cash flows as of and for the periods presented in accordance with GAAP.

Disclosure controls and procedures are designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC rules and forms, and that such information is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

**Changes in Internal Control over Financial Reporting**

There were no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the period covered by this report that have materially affected or are reasonably likely to materially affect, our internal control over financial reporting. Please refer to our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on May 28, 2025.

**PART II - OTHER INFORMATION**

**Item 1. Legal Proceedings.**

None.

**Item 1A. Risk Factors.**

The risks described under the heading "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2024 could materially and adversely affect our business, financial condition, results of operations, cash flows, future prospects, and the trading price of our Class A common stock. The risks and uncertainties described therein are not the only ones we face. Additional risks and uncertainties that we are unaware of or that we currently deem immaterial may also become important factors that adversely affect our business.

You should carefully read and consider such risks, together with all of the other information in our Annual Report on Form 10-K for the year ended December 31, 2024, in this Quarterly Report on Form 10-Q (including the disclosures in the section titled "Management's Discussion and Analysis of Financial Condition and Results of Operations" and in our interim condensed consolidated financial statements and related notes), and in the other documents that we file with the SEC.

Except for the additional risk factors set forth below, there have been no material changes from the risk factors previously disclosed under the heading "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2024.

***If we are unable to effectively manage Heliogen's business, our reputation and operating results may be harmed.***

Following the Mergers, we are required to integrate the products and businesses of Heliogen into the operations of the Company. We may be unable to successfully integrate these into our business operations. If we are unable to do so for any reason, our reputation and operating results may be harmed and we would be unable to realize the business-related benefits of the transaction.

**Item 2. Unregistered Sale of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities.**

On August 11, 2025, the Company issued 677,711 shares of Zeo class A common stock to settle accrued buyside advisory fees from the Heliogen acquisition as previously disclosed in its Current Report on Form 8-K filed with the SEC on August 19, 2025.

**Item 3. Defaults Upon Senior Securities.**

None.

**Item 4. Mine Safety Disclosures.**

Not Applicable.

**Item 5. Other Information.**

During the quarterly period ended September 30, 2025, none of our directors or officers (as defined in Rule 16a-1(f) promulgated under the Exchange Act) adopted or terminated any "Rule 10b5-1 trading arrangement" or any "non-Rule 10b5-1 trading arrangement," as each term is defined in Item 408 of Regulation S-K.

**Item 6. Exhibits.**

The following exhibits are filed as part of, or incorporated by reference into, this Form 10-Q.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | **Incorporated by Reference** | **Incorporated by Reference** | **Incorporated by Reference** |
| **Exhibit**<br>**Number** | <br>**Description** | **Form** | **Exhibit** | **Filing Date** |
| 2.1 | [Agreement and Plan of Merger and Reorganization, dated as of May 28, 2025, by and among Zeo Energy Corp., Heliogen, Inc., Hyperion Merger Corp. and Hyperion Acquisition LLC](http://www.sec.gov/Archives/edgar/data/0001865506/000121390025048509/ea024349301ex2-1_zeo.htm) | 8-K | 2.1 | May 29, 2025 |
| 3.1 | [Certificate of Incorporation of Zeo Energy Corp.](http://www.sec.gov/Archives/edgar/data/1865506/000121390024024166/ea020202901ex3-1_zeoenergy.htm) | 8-K | 3.1 | March 20, 2024 |
| 3.2 | [Bylaws of Zeo Energy Corp.](http://www.sec.gov/Archives/edgar/data/1865506/000121390024024166/ea020202901ex3-2_zeoenergy.htm) | 8-K | 3.2 | March 20, 2024 |
| 10.1 | [Form of Voting and Support Agreement.](http://www.sec.gov/Archives/edgar/data/1865506/000121390025048509/ea024349301ex10-1_zeo.htm) | 8-K | 10.1 | May 29, 2025 |
| 31.1\* | [Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](ea026456201ex31-1_zeoenergy.htm) |  |  |  |
| 31.2\* | [Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](ea026456201ex31-2_zeoenergy.htm) |  |  |  |
| 32.1\*\* | [Certification of Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](ea026456201ex32-1_zeoenergy.htm) |  |  |  |
| 32.2\*\* | [Certification of Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](ea026456201ex32-2_zeoenergy.htm) |  |  |  |
| 101.INS | Inline XBRL Instance Document |  |  |  |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document. |  |  |  |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. |  |  |  |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. |  |  |  |
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. |  |  |  |
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. |  |  |  |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |  |  |  |

---

\* Filed herewith. <br> \*\* Furnished herewith.

**SIGNATURES**

Pursuant to the requirements of Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | **ZEO Energy Corp.** | **ZEO Energy Corp.** |
| Date: November 14, 2025 |  | */s/ Timothy Bridgewater* |
|  | Name: | Timothy Bridgewater |
|  | Title: | Chief Executive Officer |
| Date: November 14, 2025 |  | */s/ Cannon Holbrook* |
|  | Name: | Cannon Holbrook |
|  | Title: | Chief Financial Officer |

---

## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATION**

**PURSUANT TO RULE 13a-14(a) OR 15d-14(a)**

**UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS ADOPTED PURSUANT TO**

**SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Timothy Bridgewater, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the quarter
ended September 30, 2025 of Zeo Energy Corp.;

2. Based on my knowledge, this report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under
which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial
information included in this report, fairly present in all material respects the financial condition, results of operations and cash
flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing
and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal controls over
financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;a. Designed such disclosure controls and procedures, or caused
such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant,
including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which
this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;b. Designed such internal control over financial reporting, or
caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding
the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally
accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;c. Evaluated the effectiveness of the registrant's disclosure
controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures,
as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;d. Disclosed in this report any change in the registrant's
internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's
fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed,
based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee
of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;a. All significant deficiencies and material weaknesses in the
design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's
ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;b. Any fraud, whether or not material, that involves management
or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Date: November 14, 2025 |  |  |
|  | By: | /s/ Timothy Bridgewater |
|  | Name: | Timothy Bridgewater |
|  | Title: | Chief Executive Officer<br> (Principal Executive Officer) |

---

## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATION**

**PURSUANT TO RULE 13a-14(a) OR 15d-14(a)**

**UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS ADOPTED PURSUANT TO**

**SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Cannon Holbrook, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the quarter
ended September 30, 2025 of Zeo Energy Corp.;

2. Based on my knowledge, this report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under
which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial
information included in this report, fairly present in all material respects the financial condition, results of operations and cash
flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible
for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the
registrant and internal controls over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant
and have:

&nbsp;&nbsp;&nbsp;&nbsp;a) Designed such disclosure controls and procedures, or caused
such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant,
including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which
this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;b) Designed such internal control over financial reporting, or
caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding
the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally
accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;c) Evaluated the effectiveness of the registrant's disclosure
controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures,
as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;d) Disclosed in this report any change in the registrant's
internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's
fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed,
based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee
of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;a) All significant deficiencies and material weaknesses in the
design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's
ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;b) Any fraud, whether or not material, that involves management
or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: November 14, 2025 |  |
|  | /s/ *Cannon Holbrook* |
|  | Cannon Holbrook |
|  | Chief Financial Officer |

---

## Exhibit 32.1

**Exhibit 32.1**

**CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350**

**AS ADOPTED PURSUANT TO SECTION 906** 

**OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Quarterly Report of Zeo Energy Corp. (the "Company") on Form 10-Q for the quarterly period ended September 30, 2025, as filed with the Securities and Exchange Commission (the "Report"), I, Timothy Bridgewater, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

1. The Report fully complies with the requirements of Section 13(a)
or 15(d) of the Securities Exchange Act of 1934, as amended; and

2. The information contained in the Report fairly presents, in
all material respects, the financial condition and results of operations of the Company as of and for the period covered by the Report.

---

| | |
|:---|:---|
| Date: November 14, 2025 |  |
|  | /s/ Timothy Bridgewater |
|  | Timothy Bridgewater |
|  | Chief Executive Officer |

---

## Exhibit 32.2

**Exhibit 32.2**

**CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350**

**AS ADOPTED PURSUANT TO SECTION 906** 

**OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Quarterly Report of Zeo Energy Corp. (the "Company") on Form 10-Q for the quarterly period ended September 30, 2025, as filed with the Securities and Exchange Commission (the "Report"), I, Cannon Holbrook, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

1. The Report fully complies with the requirements of Section 13(a)
or 15(d) of the Securities Exchange Act of 1934, as amended; and

2. The information contained in the Report fairly presents, in
all material respects, the financial condition and results of operations of the Company as of and for the period covered by the Report.

---

| | |
|:---|:---|
| Date: November 14, 2025 |  |
|  | /s/ *Cannon Holbrook* |
|  | Cannon Holbrook |
|  | Chief Financial Officer |

---