SUNation Energy, Inc. Annual report [Section 13 and 15(d), not S-K Item 405]

Annual report [Section 13 and 15(d), not S-K Item 405]

Discontinued Operations

Discontinued Operations

12 Months Ended

Dec. 31, 2024

NOTE 6 – DISCONTINUED OPERATIONS

On June 30, 2023, the Company sold substantially all of the assets of its legacy non-core subsidiaries, JDL and Ecessa, to TheIPGuys.net LLC doing business as OneNet Global for total net proceeds of $1,231,616. The Company received net initial proceeds of $1,106,616, consisting of $1,175,000 in initial consideration less $68,384 in adjustments. An additional $125,000 in consideration previously held in escrow was paid in 2024. The Company recorded a loss on sale of $1,190,002 during the second quarter of 2023. The presentation of discontinued operations with respect to this transaction has been retrospectively applied to all prior periods presented.

The financial results of the discontinued operations are as follows:


	Year Ended December 31
	2024		2023
Sales	$	—	$	3,414,810
Cost of sales		—		2,444,014
Selling, general and administrative expenses		—		916,911
Amortization expense		—		—
Transaction costs		—		14,426
Goodwill impairment loss		—		—
Restructuring expenses		—		56,717
Loss on sale of assets		—		1,190,002
Operating loss before income taxes		—		(1,207,260)
Income tax (benefit) expense		—		(14,985)
Net loss from discontinued operations	$	—	$	(1,192,275)

During the year ended December 31, 2023, the Company recorded $56,717 in restructuring expenses, which consisted of severance and related benefits costs. The Company paid $56,717 in restructuring charges in 2023 and had no restructuring accruals recorded at December 31, 2023.