Quarterly report [Sections 13 or 15(d)]

Segment Information

v3.25.3
Segment Information
 9 Months Ended
Sep. 30, 2025
Segment Information [Abstract]  
Segment Information NOTE 11 – SEGMENT INFORMATION

The Company’s segment structure reflects how management makes financial decisions and allocates resources. The Company manages its operations based on the combined results of the residential and commercial businesses with a geographical focus. The SUNation NY segment provides solar power, battery storage, and related services to customers primarily in New York. The Hawaii Energy Connection (“HEC”) segment provides the same products and services to residential and commercial customers in Hawaii. The Company’s CODM is represented by a committee that includes the Company’s CEO, CFO, and COO. The CODM regularly reviews discrete financial information for SUNation NY and HEC in deciding how to allocate resources and in assessing performance. Corporate and other represents the unallocated corporate business activities and corporate shared services, which support the Company’s operating segments, along with operating and other expenses related to legacy CSI assets.

During 2024 management determined that their two operating segments no longer met the criteria to be aggregated into one reportable segment due to changes in economic forecasts and the Company’s plans for integrating SUNation NY and HEC. As a result, management determined HEC and SUNation NY to be distinct reportable segments. Prior period amounts have been recast for comparative purposes to reflect this change, which had no impact on the Company’s consolidated financial position, results of operations, and cash flows. The accounting policies of the segments are the same as those applied in the consolidated financial statements as disclosed in Note 2, Summary of Significant Accounting Policies.

The CODM committee evaluates performance for both reportable segments based on segment revenue, gross profit, and operating (loss) income before income taxes. When using these metrics, the CODM committee considers forecast-to-actual variances on a quarterly basis when making decisions about the allocation of operating and capital resources to each segment. The CODM committee also uses these metrics for evaluating pricing strategy to assess the performance of each segment by comparing the results of each segment with one another and in determining the compensation of certain employees.

Summarized financial information for the Company’s reportable segments are presented and reconciled to consolidated financial information in the following tables, including a reconciliation of segment earnings to income before income taxes. This reconciliation also represents the significant expense categories reviewed by the CODM.

Corporate and

SUNation NY

HEC

Other

Total

Three Months Ended September 30, 2025

Sales

$

13,014,951

$

5,978,685

$

—

$

18,993,636

Cost of sales

7,723,699

4,058,252

—

11,781,951

Gross profit

5,291,252

1,920,433

—

7,211,685

Operating expenses:

Selling, general and administrative expenses

4,211,881

1,119,994

1,566,166

6,898,041

Amortization expense

203,125

356,250

—

559,375

Total operating expenses

4,415,006

1,476,244

1,566,166

7,457,416

Operating loss

876,246

444,189

(1,566,166)

(245,731)

Other income (expenses):

Investment and other income

3,713

2,044

9,416

15,173

Fair value remeasurement of contingent value rights

—

—

(2,318)

(2,318)

Interest expense

(14,448)

—

(128,972)

(143,420)

Other (expense) income, net

(10,735)

2,044

(121,874)

(130,565)

Net loss before income taxes

$

865,511

$

446,233

$

(1,688,040)

$

(376,296)

Depreciation and amortization

$

246,687

$

381,362

$

—

$

628,049

Capital expenditures

$

—

$

8,970

$

—

$

8,970

Assets

$

26,924,256

$

19,806,231

$

2,876,865

$

49,607,352

Corporate and

SUNation NY

HEC

Other

Total

Three Months Ended September 30, 2024

Sales

$

10,639,895

$

4,078,491

$

—

$

14,718,386

Cost of sales

6,605,595

2,877,066

—

9,482,661

Gross profit

4,034,300

1,201,425

—

5,235,725

Operating expenses:

Selling, general and administrative expenses

3,459,895

1,106,608

1,566,584

6,133,087

Amortization expense

203,125

506,250

—

709,375

Total operating expenses

3,663,020

1,612,858

1,566,584

6,842,462

Operating income (loss)

371,280

(411,433)

(1,566,584)

(1,606,737)

Other income (expenses):

Investment and other income

4,513

6,004

14,894

25,410

Loss on sale of assets

—

—

(6,940)

(6,940)

Fair value remeasurement of warrant liability

—

—

(1,435,845)

(1,435,845)

Fair value remeasurement of embedded derivative liability

—

—

587,271

587,271

Fair value remeasurement of contingent value rights

—

—

(14,051)

(14,051)

Interest expense

(17,594)

—

(793,957)

(811,551)

Loss on debt extinguishment

—

—

(35,657)

(35,657)

Other (expense) income, net

(13,081)

6,004

(1,684,285)

(1,691,363)

Net (loss) income before income taxes

$

358,199

$

(405,429)

$

(3,250,869)

$

(3,298,100)

Depreciation and amortization

$

254,115

$

530,121

$

512

$

784,748

Capital expenditures

$

12,170

$

—

$

—

$

12,170

Assets

$

15,683,384

$

12,483,699

$

22,832,253

$

50,999,336

Corporate and

SUNation NY

HEC

Other

Total

Nine Months Ended September 30, 2025

Sales

$

32,380,354

$

12,314,174

$

—

$

44,694,528

Cost of sales

19,455,498

8,756,503

—

28,212,001

Gross profit

12,924,856

3,557,671

—

16,482,527

Operating expenses:

Selling, general and administrative expenses

11,805,885

3,117,988

4,457,195

19,381,068

Amortization expense

609,375

1,068,750

—

1,678,125

Total operating expenses

12,415,260

4,186,738

4,457,195

21,059,193

Operating loss

509,596

(629,067)

(4,457,195)

(4,576,666)

Other income (expenses):

Investment and other income

21,960

12,277

56,762

90,999

Fair value remeasurement of warrant liability

—

—

(7,531,044)

(7,531,044)

Fair value remeasurement of contingent forward contract

—

—

899,080

899,080

Fair value remeasurement of contingent value rights

—

—

23,132

23,132

Financing fees

—

—

(1,136,532)

(1,136,532)

Interest expense

(45,404)

—

(831,386)

(876,790)

Loss on debt extinguishment

—

—

(343,471)

(343,471)

Other (expense) income, net

(23,444)

12,277

(8,863,459)

(8,874,626)

Net loss before income taxes

$

486,152

$

(616,790)

$

(13,320,654)

$

(13,451,292)

Depreciation and amortization

$

748,785

$

1,132,008

$

—

$

1,880,793

Capital expenditures

$

—

$

17,787

$

—

$

17,787

Corporate and

SUNation NY

HEC

Other

Total

Nine Months Ended September 30, 2024

Sales

$

30,124,512

$

11,362,491

$

—

$

41,487,003

Cost of sales

18,426,133

8,227,343

—

26,653,476

Gross profit

11,698,379

3,135,148

—

14,833,527

Operating expenses:

Selling, general and administrative expenses

11,303,054

3,100,140

4,917,843

19,321,037

Amortization expense

609,375

1,518,750

—

2,128,125

Fair value remeasurement of SUNation NY earnout consideration

—

—

(800,000)

(800,000)

Total operating expenses

11,912,429

4,618,890

4,117,843

20,649,162

Operating (loss) income

(214,050)

(1,483,742)

(4,117,843)

(5,815,635)

Other income (expenses):

Investment and other income

14,285

11,455

72,836

98,576

(Loss) gain on sale of assets

—

6,118

(6,940)

(822)

Fair value remeasurement of warrant liability

—

—

(974,823)

(974,823)

Fair value remeasurement of embedded derivative liability

—

—

(468,329)

(468,329)

Fair value remeasurement of contingent value rights

—

—

478,809

478,809

Interest expense

(55,244)

—

(2,256,810)

(2,312,054)

Loss on debt extinguishment

—

—

(35,657)

(35,657)

Other (expense) income, net

(40,959)

17,573

(3,190,914)

(3,214,300)

Net loss before income taxes

$

(255,009)

$

(1,466,169)

$

(7,308,757)

$

(9,029,935)

Depreciation and amortization

$

780,277

$

1,590,985

$

2,050

$

2,373,312

Capital expenditures

$

24,155

$

5,594

$

—

$

29,749