| 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 June 30, 2026 | | | | | | | | | | | | Sales | $ | 5,374,665 | | $ | 2,787,322 | | $ | — | | $ | 8,161,987 | Cost of sales | | 3,959,265 | | | 2,073,200 | | | — | | | 6,032,465 | Gross profit | | 1,415,400 | | | 714,122 | | | — | | | 2,129,522 | Operating expenses: | | | | | | | | | | | | Selling, general and administrative expenses | | 2,351,425 | | | 826,553 | | | 1,005,119 | | | 4,183,097 | Amortization expense | | 203,125 | | | 356,250 | | | — | | | 559,375 | Transaction costs | | — | | | — | | | 570,516 | | | 570,516 | Total operating expenses | | 2,554,550 | | | 1,182,803 | | | 1,575,635 | | | 5,312,988 | Operating loss | | (1,139,150) | | | (468,681) | | | (1,575,635) | | | (3,183,466) | Other income (expense): | | | | | | | | | | | | Investment and other income | | 6,394 | | | — | | | 7,115 | | | 13,509 | Gain on sale of assets | | — | | | — | | | 1,000 | | | 1,000 | Interest expense | | (75,177) | | | — | | | (83,298) | | | (158,475) | Other (expense) income, net | | (68,783) | | | — | | | (75,183) | | | (143,966) | Net loss before income taxes | $ | (1,207,933) | | $ | (468,681) | | $ | (1,650,818) | | $ | (3,327,432) | | | | | | | | | | | | | Depreciation and amortization | $ | 246,727 | | $ | 375,702 | | $ | — | | $ | 622,429 | | | | | | | | | | | | | Capital expenditures | $ | 2,500 | | $ | — | | $ | — | | $ | 2,500 | | | | | | | | | | | | | Assets | $ | 22,759,005 | | $ | 15,225,023 | | $ | 2,937,773 | | $ | 40,921,801 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Corporate and | | | | SUNation NY | | HEC | | Other | | Total | Three Months Ended June 30, 2025 | | | | | | | | | | | | Sales | $ | 9,820,849 | | $ | 3,243,405 | | $ | — | | $ | 13,064,254 | Cost of sales | | 5,859,827 | | | 2,364,910 | | | — | | | 8,224,737 | Gross profit | | 3,961,022 | | | 878,495 | | | — | | | 4,839,517 | Operating expenses: | | | | | | | | | | | | Selling, general and administrative expenses | | 3,746,504 | | | 1,021,320 | | | 1,675,905 | | | 6,443,729 | Amortization expense | | 203,125 | | | 356,250 | | | — | | | 559,375 | Total operating expenses | | 3,949,629 | | | 1,377,570 | | | 1,675,905 | | | 7,003,104 | Operating income (loss) | | 11,393 | | | (499,075) | | | (1,675,905) | | | (2,163,587) | Other income (expense): | | | | | | | | | | | | Investment and other income | | — | | | — | | | 27,661 | | | 27,661 | Fair value remeasurement of warrant liability | | — | | | — | | | (7,531,044) | | | (7,531,044) | Fair value remeasurement of contingent forward contract | | — | | | — | | | 789,588 | | | 789,588 | Fair value remeasurement of contingent value rights | | — | | | — | | | 6,271 | | | 6,271 | Financing fees | | — | | | — | | | (559,938) | | | (559,938) | Interest expense | | — | | | — | | | (162,130) | | | (162,130) | Other (expense) income, net | | — | | | — | | | (7,429,592) | | | (7,429,592) | Net loss before income taxes | $ | 11,393 | | $ | (499,075) | | $ | (9,105,497) | | $ | (9,593,179) | | | | | | | | | | | | | Depreciation and amortization | $ | 251,048 | | $ | 374,381 | | $ | — | | $ | 625,429 | | | | | | | | | | | | | Capital expenditures | $ | — | | $ | 8,817 | | $ | — | | $ | 8,817 | | | | | | | | | | | | | Assets | $ | 24,140,111 | | $ | 16,935,705 | | $ | 3,054,034 | | $ | 44,129,850 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Corporate and | | | | SUNation NY | | HEC | | Other | | Total | Six Months Ended June 30, 2026 | | | | | | | | | | | | Sales | $ | 10,528,508 | | $ | 4,827,928 | | $ | — | | $ | 15,356,436 | Cost of sales | | 7,845,378 | | | 3,790,288 | | | — | | | 11,635,666 | Gross profit | | 2,683,130 | | | 1,037,640 | | | — | | | 3,720,770 | Operating expenses: | | | | | | | | | | | | Selling, general and administrative expenses | | 5,148,696 | | | 1,613,546 | | | 2,782,277 | | | 9,544,519 | Amortization expense | | 406,250 | | | 712,500 | | | — | | | 1,118,750 | Transaction costs | | — | | | — | | | 570,516 | | | 570,516 | Total operating expenses | | 5,554,946 | | | 2,326,046 | | | 3,352,793 | | | 11,233,785 | Operating loss | | (2,871,816) | | | (1,288,406) | | | (3,352,793) | | | (7,513,015) | Other income (expense): | | | | | | | | | | | | Investment and other income | | — | | | 337 | | | 61,800 | | | 62,137 | Gain on sale of assets | | — | | | — | | | 3,700 | | | 3,700 | Interest expense | | — | | | — | | | (291,924) | | | (291,924) | Gain on debt extinguishment | | — | | | — | | | 332,412 | | | 332,412 | Other income (expense), net | | — | | | 337 | | | 105,988 | | | 106,325 | Net loss before income taxes | $ | (2,871,816) | | $ | (1,288,069) | | $ | (3,246,805) | | $ | (7,406,690) | | | | | | | | | | | | | Depreciation and amortization | $ | 493,413 | | $ | 751,553 | | $ | — | | $ | 1,244,966 | | | | | | | | | | | | | Capital expenditures | $ | 2,500 | | $ | — | | $ | — | | $ | 2,500 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Corporate and | | | | SUNation NY | | HEC | | Other | | Total | Six Months Ended June 30, 2025 | | | | | | | | | | | | Sales | $ | 19,365,403 | | $ | 6,335,489 | | $ | — | | $ | 25,700,892 | Cost of sales | | 11,731,799 | | | 4,698,251 | | | — | | | 16,430,050 | Gross profit | | 7,633,604 | | | 1,637,238 | | | — | | | 9,270,842 | Operating expenses: | | | | | | | | | | | | Selling, general and administrative expenses | | 7,594,004 | | | 1,997,994 | | | 2,891,029 | | | 12,483,027 | Amortization expense | | 406,250 | | | 712,500 | | | — | | | 1,118,750 | Total operating expenses | | 8,000,254 | | | 2,710,494 | | | 2,891,029 | | | 13,601,777 | Operating (loss) income | | (366,650) | | | (1,073,256) | | | (2,891,029) | | | (4,330,935) | Other income (expenses): | | | | | | | | | | | | Investment and other income | | — | | | — | | | 75,826 | | | 75,826 | Fair value remeasurement of warrant liability | | — | | | — | | | (7,531,044) | | | (7,531,044) | Fair value remeasurement of contingent forward contract | | — | | | — | | | 899,080 | | | 899,080 | Fair value remeasurement of contingent value rights | | — | | | — | | | 25,450 | | | 25,450 | Financing fees | | — | | | — | | | (1,136,532) | | | (1,136,532) | Interest expense | | — | | | — | | | (733,370) | | | (733,370) | Loss on debt extinguishment | | — | | | — | | | (343,471) | | | (343,471) | Other (expense) income, net | | — | | | — | | | (8,744,061) | | | (8,744,061) | Net loss before income taxes | $ | (366,650) | | $ | (1,073,256) | | $ | (11,635,090) | | $ | (13,074,996) | | | | | | | | | | | | | Depreciation and amortization | $ | 502,098 | | $ | 750,646 | | $ | — | | $ | 1,252,744 | | | | | | | | | | | | | Capital expenditures | $ | — | | $ | 8,817 | | $ | — | | $ | 8,817 |
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