Quarterly report [Sections 13 or 15(d)]

Revenue Recognition

v3.25.3
Revenue Recognition
 9 Months Ended
Sep. 30, 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 September 30

SUNation NY

HEC

2025

2024

2025

2024

Residential contracts

$

9,919,664

$

6,522,508

$

5,737,702

$

3,612,274

Commercial contracts

2,228,443

3,618,023

—

322,053

Service revenue

866,844

499,364

240,983

144,164

$

13,014,951

$

10,639,895

$

5,978,685

$

4,078,491

Revenue by Type

Nine Months Ended September 30

SUNation NY

HEC

2025

2024

2025

2024

Residential contracts

$

25,832,477

$

23,138,960

$

11,203,996

$

10,506,104

Commercial contracts

4,766,323

5,107,418

139,319

308,910

Service revenue

1,781,554

1,878,134

970,859

547,477

$

32,380,354

$

30,124,512

$

12,314,174

$

11,362,491

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

Three Months Ended September 30

SUNation NY

HEC

2025

2024

2025

2024

Performance obligations satisfied at a point in time

$

10,786,508

$

7,021,872

$

5,978,685

$

3,756,438

Performance obligations satisfied over time

2,228,443

3,618,023

—

322,053

$

13,014,951

$

10,639,895

$

5,978,685

$

4,078,491

Nine Months Ended September 30

SUNation NY

HEC

2025

2024

2025

2024

Performance obligations satisfied at a point in time

$

27,614,031

$

25,017,094

$

12,174,855

$

11,053,581

Performance obligations satisfied over time

4,766,323

5,107,418

139,319

308,910

$

32,380,354

$

30,124,512

$

12,314,174

$

11,362,491

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 $797,390, $560,648, and $57,241 at September 30, 2025, December 31, 2024, and January 1, 2024, respectively. Contract liabilities were $6,221,082, $2,314,483, and $2,552,452 at September 30, 2025, December 31, 2024, and January 1, 2024, respectively. During the nine months ended September 30, 2025, $2,138,538 within contract liabilities as of December 31, 2024 has been recognized within revenue.