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

Revenue Recognition

v3.25.1
Revenue Recognition
 12 Months Ended
Dec. 31, 2024
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 for the years ended December 31, 2024 and 2023:

Revenue by Type

SUNation

HEC

2024

2023

2024

2023

Residential contracts

$

30,715,255

$

39,326,408

$

15,984,618

$

24,855,946

Commercial contracts

6,700,469

9,903,437

429,259

1,380,466

Service revenue

2,317,638

3,133,865

714,514

673,544

Software revenue

—

—

—

347,550

Other

—

—

—

11,493

$

39,733,362

$

52,363,710

$

17,128,391

$

27,268,999

The following table disaggregates revenue based on the timing of satisfaction of the performance obligations for the years ended December 31, 2024 and 2023:

SUNation

HEC

2024

2023

2024

2023

Performance obligations satisfied at a point in time

$

33,032,893

$

42,460,273

$

16,699,132

$

25,888,533

Performance obligations satisfied over time

6,700,469

9,903,437

429,259

1,380,466

$

39,733,362

$

52,363,710

$

17,128,391

$

27,268,999

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 $560,648 and $57,241 at December 31, 2024 and 2023, respectively. Contract liabilities were $2,314,483 and $2,552,452 at December 31, 2024 and 2023, respectively. Due to the shorter-term nature of our contracts, the balances within contract assets and liabilities as of December 31, 2023 has been recognized within cash and revenue, respectively, during the year ended December 31, 2024.