Quarterly report [Sections 13 or 15(d)]

Revenue Recognition

v3.25.2
Revenue Recognition
 6 Months Ended
Jun. 30, 2025
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 June 30

SUNation

HEC

2025

2024

2025

2024

Residential contracts

$

8,016,690

$

8,484,744

$

2,727,495

$

3,665,952

Commercial contracts

1,261,992

492,202

139,319

(13,143)

Service revenue

542,167

754,701

376,591

164,964

$

9,820,849

$

9,731,647

$

3,243,405

$

3,817,773

Revenue by Type

Six Months Ended June 30

SUNation

HEC

2025

2024

2025

2024

Residential contracts

$

15,912,812

$

16,616,452

$

5,466,295

$

6,893,831

Commercial contracts

2,537,880

1,489,395

139,319

(13,143)

Service revenue

914,711

1,378,770

729,875

403,312

$

19,365,403

$

19,484,617

$

6,335,489

$

7,284,000

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

Three Months Ended June 30

SUNation

HEC

2025

2024

2025

2024

Performance obligations satisfied at a point in time

$

8,558,857

$

9,239,445

$

3,104,086

$

3,830,916

Performance obligations satisfied over time

1,261,992

492,202

139,319

(13,143)

$

9,820,849

$

9,731,647

$

3,243,405

$

3,817,773

Six Months Ended June 30

SUNation

HEC

2025

2024

2025

2024

Performance obligations satisfied at a point in time

$

16,827,523

$

17,995,222

$

6,196,170

$

7,297,143

Performance obligations satisfied over time

2,537,880

1,489,395

139,319

(13,143)

$

19,365,403

$

19,484,617

$

6,335,489

$

7,284,000

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 $604,077 , $560,648, and $57,241 at June 30, 2025, December 31, 2024, and January 1, 2024, respectively. Contract liabilities were $1,955,162, $2,314,483, and $2,552,452 at June 30, 2025, December 31, 2024, and January 1, 2024, respectively. During the six months ended June 30, 2025, $1,953,276 within contract liabilities as of December 31, 2024 has been recognized within revenue.