Quarterly report [Sections 13 or 15(d)]

Revenue Recognition

v3.25.1
Revenue Recognition
 3 Months Ended
Mar. 31, 2025
Revenue Recognition [Abstract]  
Revenue Recognition NOTE 3 – REVENUE RECOGNITION

Disaggregation of revenue

Revenues are recognized when control of the promised goods or services is transferred to our customers, in an amount that best reflects the consideration we expect to receive in exchange for those goods or services.

The following table disaggregates revenue based on type:

Revenue by Type

Three Months Ended March 31

SUNation

HEC

2025

2024

2025

2024

Residential contracts

$

7,896,122

$

8,131,708

$

2,738,800

$

3,227,879

Commercial contracts

1,275,888

997,193

—

—

Service revenue

372,544

624,069

353,284

238,348

Software revenue

—

—

—

—

Other

—

—

—

—

$

9,544,554

$

9,752,970

$

3,092,084

$

3,466,227

The following table disaggregates revenue based on the timing of satisfaction of the performance obligations:

Three Months Ended March 31

SUNation

HEC

2025

2024

2025

2024

Performance obligations satisfied at a point in time

$

8,268,666

$

8,755,777

$

3,092,084

$

3,466,227

Performance obligations satisfied over time

1,275,888

997,193

—

—

$

9,544,554

$

9,752,970

$

3,092,084

$

3,466,227

Contract Balances

Contract assets represent costs and earnings in excess of amounts billed and direct costs, including commissions, financing and permitting fees paid prior to recording revenue. Contract liabilities represent amounts billed to clients in excess of revenue recognized to date and billings in excess of costs and earnings. Contract assets were $692,821 and $560,648 at March 31, 2025 and December 31, 2024, respectively. Contract liabilities were $1,724,571 and $2,314,483 at March 31, 2025 and December 31, 2024, respectively. During the three months ended March 31, 2025, $0 in contract assets and $1,681,228 within contract liabilities as of December 31, 2024 has been recognized within cash and revenue, respectively.