Quarterly report [Sections 13 or 15(d)]

Revenue Recognition

v3.26.1
Revenue Recognition
 3 Months Ended
Mar. 31, 2026
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 NY

HEC

2026

2025

2026

2025

Residential contracts

$

3,395,032

$

7,896,122

$

1,624,377

$

2,738,800

Commercial contracts

1,347,306

1,275,888

126,136

—

Service revenue

411,505

372,544

290,093

353,284

$

5,153,843

$

9,544,554

$

2,040,606

$

3,092,084

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

Three Months Ended March 31

SUNation

HEC

2026

2025

2026

2025

Performance obligations satisfied at a point in time

$

3,806,537

$

8,268,666

$

1,914,470

$

3,092,084

Performance obligations satisfied over time

1,347,306

1,275,888

126,136

—

$

5,153,843

$

9,544,554

$

2,040,606

$

3,092,084

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 $239,599, $658,177, and $560,648 at March 31, 2026, December 31, 2025, and January 1, 2025, respectively. Contract liabilities were $2,269,844, $2,737,151, and $2,314,483 at March 31, 2026, December 31, 2025, and January 1, 2025, respectively. During the three months ended March 31, 2026, $1,418,002 within contract liabilities as of December 31, 2025 has been recognized within revenue.