SUNation Energy, Inc. Registration of securities issued in business combination transactions

Registration of securities issued in business combination transactions

INFORMATION CONCERNING INDUSTRY SEGMENTS AND MAJOR CUSTOMERS (Tables)

INFORMATION CONCERNING INDUSTRY SEGMENTS AND MAJOR CUSTOMERS (Tables)

9 Months Ended

12 Months Ended

Sep. 30, 2021

Dec. 31, 2020

Segment Reporting [Abstract]

Schedule of Segment Information

Information concerning the Company’s continuing operations in its S&S segment for the three and nine month periods ended September 30, 2021 and 2020 are as follows:

Schedule of Segment Information


	Services &				Intercompany
	Support		Other		Eliminations		Total
Three Months Ended September 30, 2021
Sales	$	1,947,000	$	—	$	(119,000)	$	1,828,000
Cost of sales		1,113,000		—		—		1,113,000
Gross profit		834,000		—		(119,000)		715,000
Selling, general and
administrative expenses		669,000		1,138,000		(119,000)		1,688,000
Amortization expense		110,000		—		—		110,000
Transaction costs		—		543,000		—		543,000
Restructuring expense		—		242,000		—		242,000
Operating income (loss)		55,000		(1,923,000)		—		(1,868,000)
Other income		4,000		66,000		—		70,000
Income (loss) before income tax	$	59,000	$	(1,857,000)	$	—	$	(1,798,000)

Depreciation and amortization	$	133,000	$	72,000	$	—	$	205,000

Capital expenditures	$	5,000	$	9,000	$	—	$	14,000

Assets	$	6,776,000	$	50,213,000	$	(27,000)	$	56,962,000



	Services &				Intercompany
	Support		Other		Eliminations		Total
Three Months Ended September 30, 2020
Sales	$	3,530,000	$	—	$	(176,000)	$	3,354,000
Cost of sales		2,190,000		—		(9,000)		2,181,000
Gross profit		1,340,000		—		(167,000)		1,173,000
Selling, general and
administrative expenses		803,000		1,324,000		(167,000)		1,960,000
Amortization expense		106,000		—		—		106,000
Transaction costs		—		72,000		—		72,000
Operating income (loss)		431,000		(1,396,000)		—		(965,000)
Other income		—		275,000		—		275,000
Income (loss) before income tax	$	431,000	$	(1,121,000)	$	—	$	(690,000)

Depreciation and amortization	$	146,000	$	128,000	$	—	$	274,000

Capital expenditures	$	—	$	79,000	$	—	$	79,000

Assets	$	8,334,000	$	47,410,000	$	(27,000)	$	55,717,000


	Services &				Intercompany
	Support		Other		Eliminations		Total
Nine Months Ended September 30, 2021
Sales	$	5,719,000	$	—	$	(406,000)	$	5,313,000
Cost of sales		3,459,000		—		—		3,459,000
Gross profit		2,260,000		—		(406,000)		1,854,000
Selling, general and
administrative expenses		2,290,000		3,683,000		(406,000)		5,567,000
Amortization expense		346,000		—		—		346,000
Transaction costs		—		2,471,000		—		2,471,000
Restructuring expense		—		242,000		—		242,000
Operating loss		(376,000)		(5,780,000)		—		(6,156,000)
Other income (expense)		20,000		(186,000)		—		(166,000)
Loss before income tax	$	(356,000)	$	(5,966,000)	$	—	$	(6,322,000)

Depreciation and amortization	$	426,000	$	218,000	$	—	$	644,000

Capital expenditures	$	11,000	$	9,000	$	—	$	20,000



	Services &				Intercompany
	Support		Other		Eliminations		Total
Nine Months Ended September 30, 2020
Sales	$	5,882,000	$	—	$	(561,000)	$	5,321,000
Cost of sales		3,792,000		—		(36,000)		3,756,000
Gross profit		2,090,000		—		(525,000)		1,565,000
Selling, general and
administrative expenses		1,614,000		3,928,000		(525,000)		5,017,000
Amortization expense		106,000		—		—		106,000
Transaction costs		—		486,000		—		486,000
Operating income (loss)		370,000		(4,414,000)		—		(4,044,000)
Other income		—		948,000		—		948,000
Income (loss) before income tax	$	370,000	$	(3,466,000)	$	—	$	(3,096,000)

Depreciation and amortization	$	178,000	$	443,000	$	—	$	621,000

Capital expenditures	$	1,000	$	100,000	$	—	$	101,000

Information concerning the Company’s operations in the various segments for the years ended December 31, 2020 and 2019 is as follows:

Schedule of Segment Information

	Electronics &			Services &						Intersegment
	Software			Support			Other			Eliminations			Total
2020
Sales	$	34,496,000		$	8,777,000		$	—		$	(697,000	)	$	42,576,000
Cost of sales		19,606,000			5,798,000			—			(35,000	)		25,36 9,000
Gross profit		14,890,000			2,979,000			—			(662,000	)		17,207,000

Selling, general and administrative expenses		13,875,000			2,669,000			3,337,000			(662,000	)		19,219,000
Acquisition costs		—			—			685,000			—			685,000
Operating income (loss)		1,015,000			310,000			(4,022,000	)		—			(2,697,000	)
Other income (expense)		(10,000	)		(32,000	)		964,000			—			922,000
Income (loss) from continuing operations before tax	$	1,005,000		$	278,000		$	(3,058,000	)	$	—		$	(1,775,000	)

Depreciation and amortization	$	288,000		$	292,000		$	382,000		$	—		$	962,000

Capital expenditures	$	81,000		$	14,000		$	155,000		$	—		$	250,000

Assets	$	15,398,000		$	8,521,000		$	31,664,000		$	(27,000	)	$	55,556,000

	Electronics &			Services &						Intersegment
	Software			Support			Other			Eliminations			Total
2019
Sales	$	47,007,000		$	4,741,000		$	—		$	(842,000	)	$	50,906,000
Cost of sales		25,613,000			3,259,000			—			(152,000	)		28,720,000
Gross profit		21,394,000			1,482,000			—			(690,000	)		22,186,000
Selling, general and administrative expenses		17,354,000			1,485,000			4,028,000			(690,000	)		22,177,000
Operating income (loss)		4,040,000			(3,000	)		(4,028,000	)		—			9,000
Other income (expense)		(7,000	)		(10,000	)		243,000			—			226,000
Income (loss) from continuing operations before tax	$	4,033,000		$	(13,000	)	$	(3,785,000	)	$	—		$	235,000

Depreciation and amortization	$	360,000		$	92,000		$	581,000		$	—		$	1,033,000

Capital expenditures	$	81,000		$	69,000		$	275,000		$	—		$	425,000

Assets	$	19,902,000		$	1,694,000		$	37,582,000		$	(27,000	)	$	59,151,000