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

Segment Information

v3.26.1
Segment Information
 12 Months Ended
Dec. 31, 2025
Segment Information [Abstract]  
Segment Information NOTE 13 – 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 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.

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.

The Company had no customers that comprised more than 10% of the Company's consolidated revenues during either of the years ended December 31, 2025 and 2024.

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.

Year ended December 31, 2025

Corporate and

SUNation NY

HEC

Other

Total

Sales

$

49,600,311

$

22,305,216

$

—

$

71,905,527

Cost of sales

29,433,948

14,927,366

—

44,361,314

Gross profit

20,166,363

7,377,850

—

27,544,213

Operating expenses:

Selling, general and administrative expenses

16,237,256

4,766,477

5,976,017

26,979,750

Amortization expense

812,500

1,425,000

—

2,237,500

Total operating expenses

17,049,756

6,191,477

5,976,017

29,217,250

Operating (loss) income

3,116,607

1,186,373

(5,976,017)

(1,673,037)

Other income (expenses):

Investment and other income

29,335

13,044

64,246

106,625

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

—

—

36,079

36,079

Financing fees

(1,294,090)

(1,294,090)

Interest expense

(58,908)

—

(982,927)

(1,041,835)

Loss on debt extinguishment

—

—

(343,471)

(343,471)

Other expense, net

(29,573)

13,044

(9,152,127)

(9,168,656)

Operating loss from continuing operations before income taxes

$

3,087,034

$

1,199,417

$

(15,128,144)

$

(10,841,693)

Depreciation and amortization

$

995,472

$

1,507,643

$

—

$

2,503,115

Capital expenditures

$

—

$

48,594

$

—

$

48,594

Assets

$

27,437,628

$

18,199,530

$

2,606,962

$

48,244,120

Year ended December 31, 2024

Corporate and

SUNation NY

HEC

Other

Total

Sales

$

39,733,362

$

17,128,391

$

—

$

56,861,753

Cost of sales

24,639,695

11,795,814

—

36,435,509

Gross profit

15,093,667

5,332,577

—

20,426,244

Operating expenses:

Selling, general and administrative expenses

15,265,443

4,530,879

7,257,844

27,054,166

Amortization expense

812,500

2,025,000

—

2,837,500

Fair value remeasurement of SUNation earnout consideration

—

—

(1,000,000)

(1,000,000)

Goodwill impairment loss

—

3,101,981

—

3,101,981

Intangible asset impairment loss

—

750,000

—

750,000

Total operating expenses

16,077,943

10,407,860

6,257,844

32,743,647

Operating (loss) income

(984,276)

(5,075,283)

(6,257,844)

(12,317,403)

Other income (expenses):

Investment and other income

25,920

17,742

100,867

144,529

(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

—

—

(65,617)

(65,617)

Fair value remeasurement of contingent value rights

—

—

522,257

522,257

Interest expense

(74,507)

—

(3,012,943)

(3,087,450)

Loss on debt extinguishment

—

—

(35,657)

(35,657)

Other expense, net

(48,587)

23,860

(3,472,856)

(3,497,583)

Operating loss from continuing operations before income taxes

$

(1,032,863)

$

(5,051,423)

$

(9,730,700)

$

(15,814,986)

Depreciation and amortization

$

1,031,418

$

2,120,364

$

2,050

$

3,153,832

Capital expenditures

$

24,155

$

8,630

$

—

$

32,785

Assets

$

26,127,816

$

18,150,306

$

1,434,610

$

45,712,732