Quarterly report [Sections 13 or 15(d)]

Related Party Transactions

v3.26.1
Related Party Transactions
 3 Months Ended
Mar. 31, 2026
Related Party Transactions [Abstract]  
Related Party Transactions NOTE 7 – RELATED PARTY TRANSACTIONS

Related party receivables

The Company has provided advances to employees resulting in a balance as of March 31, 2026 and December 31, 2025 of $21,205 and $21,412, respectively.

Leases

The Company leases its offices in Hawaii from a company owned by the prior owner of HEC, of whom is still an employee.

Debt

As of March 31, 2026, the Company only has outstanding related party debt under the SUNation NY Long-Term Note and the Revolving Credit Agreement. The MBB Note was paid in full during the first quarter of 2025.

See further information regarding the related part debt, including the MBB Line of Credit facility within Note 6, Commitments and Contingencies.

On April 14, 2026, the Board of Directors of the Company approved the conversion of $1,200,000 million of the Long-Term Note to equity at a premium of 10% per share above both the closing price and the 5-day closing average of the Company’s common stock on Nasdaq Stock Market on April 13, 2026, thereby reducing the Company’s principal debt thereunder following this debt to equity conversion. The Long-Term Note is held by the Company’s chief executive officer and chief financial officer. See Note 14, Subsequent Events, for further discussion and details related to this debt conversion.