Quarterly report [Sections 13 or 15(d)]

Segment Information

v3.26.1
Segment Information
 3 Months Ended
Mar. 31, 2026
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.

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 March 31, 2026

Sales

$

5,153,843

$

2,040,606

$

—

$

7,194,449

Cost of sales

3,886,113

1,717,088

—

5,603,201

Gross profit

1,267,730

323,518

—

1,591,248

Operating expenses:

Selling, general and administrative expenses

2,797,271

786,993

1,777,159

5,361,423

Amortization expense

203,125

356,250

—

559,375

Total operating expenses

3,000,396

1,143,243

1,777,159

5,920,798

Operating loss

(1,732,666)

(819,725)

(1,777,159)

(4,329,550)

Other income (expenses):

Investment and other income

3,958

6,333

38,337

48,628

Gain on sale of assets

2,700

—

—

2,700

Interest expense

(6,733)

—

(126,716)

(133,449)

Gain on debt extinguishment

332,412

—

—

332,412

Other income (expense), net

332,337

6,333

(88,379)

250,291

Net loss before income taxes

$

(1,400,329)

$

(813,392)

$

(1,865,538)

$

(4,079,259)

Depreciation and amortization

$

246,686

$

375,851

$

—

$

622,537

Assets

$

22,872,387

$

15,616,779

$

1,630,886

$

40,120,052

Corporate and

SUNation NY

HEC

Other

Total

Three Months Ended March 31, 2025

Sales

$

9,544,554

$

3,092,084

$

—

$

12,636,638

Cost of sales

5,871,972

2,333,341

—

8,205,313

Gross profit

3,672,582

758,743

—

4,431,325

Operating expenses:

Selling, general and administrative expenses

3,847,500

976,674

1,215,124

6,039,298

Amortization expense

203,125

356,250

—

559,375

Total operating expenses

4,050,625

1,332,924

1,215,124

6,598,673

Operating income (loss)

(378,043)

(574,181)

(1,215,124)

(2,167,348)

Other income (expenses):

Investment and other income

—

—

48,165

48,165

Fair value remeasurement of contingent forward contract

—

—

109,492

109,492

Fair value remeasurement of contingent value rights

—

—

19,179

19,179

Financing fees

—

—

(576,594)

(576,594)

Interest expense

—

—

(571,240)

(571,240)

Loss on debt extinguishment

—

—

(343,471)

(343,471)

Other (expense) income, net

—

—

(1,314,469)

(1,314,469)

Net loss before income taxes

$

(378,043)

$

(574,181)

$

(2,529,593)

$

(3,481,817)

Depreciation and amortization

$

251,050

$

376,265

$

—

$

627,315

Assets

$

25,302,335

$

17,320,441

$

1,804,896

$

44,427,672