Financial Analysis

"NOTE 8 COMMITMENTS AND CONTINGENCIES Revolving Line of Credit On April 14, 2025, the Company entered into a Secured Revolving Line of Credit Agreement (the Revolving Credit Agreement) with MBB Energy, LLC (MBB), an affiliate of the Company, as lender, providing for a $ 1.0 million revolving credit facility (the Revolver). The Revolver matures on April 14, 2026 , unless earlier terminated or extended pursuant to its terms. Borrowings, if any, under the Revolver will bear interest at a fixed annual rate of 8 %, payable monthly in arrears on the first day of each calendar month. The Revolving Credit Agreement includes customary affirmative and negative covenants, as well as standard events of default, which, if triggered, may permit the lender to accelerate all outstanding obligations under the facility. The Company may repay outstanding borrowings at any time without penalty. As of December 31, 2025, no amounts have been drawn on the Revolver. As of December 31, 2025, the Company was in compliance with all covenants and other requirements of the Revolving Credit Agreement. See Note 16, Subsequent Events, for drawdowns made under this facility in January 2026. Loan Payable Pineapple Energy LLC had a loan in an original amount of $ 7,500,000 payable to Hercules Capital, Inc. (Hercules) under a loan and security agreement (the Term Loan Agreement). This loan accrues interest at 10 %, payable-in-kind (PIK) and was initially due and payable on December 10, 2023. There are no financ …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

The following table disaggregates revenue based on type for the years ended December 31, 2025 and 2024: Revenue by Type SUNation NY HEC 2025 2024 2025 2024 Residential contracts $ 40,215,497 $ 30,715,255 $ 20,993,980 $ 15,984,618 Commercial contracts 6,894,923 6,700,469 189,694 429,259 Service revenue 2,489,891 2,317,638 1,121,542 714,514 $ 49,600,311 $ 39,733,362 $ 22,305,216 $ 17,128,391 The following table disaggregates revenue based on the timing of satisfaction of the performance obligations for the years ended December 31, 2025 and 2024: SUNation NY HEC 2025 2024 2025 2024 Performance obligations satisfied at a point in time $ 42,705,388 $ 33,032,893 $ 22,115,522 $ 16,699,132 Performance obligations satisfied over time 6,894,923 6,700,469 189,694 429,259 $ 49,600,311 $ 39,733,362 $ 22,305,216 $ 17,128,391

DisaggregationOfRevenueTableTextBlock

"NOTE 10 SHARE BASED COMPENSATION 2022 Equity Incentive Plan On January 24, 2022 the board of directors adopted, and on March 16, 2022 the Companys shareholders approved, the Companys 2022 Equity Incentive Plan (the 2022 Plan), which became effective on March 28, 2022. The 2022 Plan authorizes incentive awards to officers, key employees, non-employee directors, and consultants in the form of options (incentive and non-qualified), stock appreciation rights, restricted stock awards, stock unit awards, and other stock-based awards. Following amendments approved on December 7, 2022 and July 19, 2024, the 2022 Plan authorizes the issuance of up to 67 shares of common stock ( 10,000,000 prior to the Reverse Stock Splits). At December 31, 2025, 4 shares had been issued under the 2022 Plan, 3 shares were subject to currently outstanding unvested restricted stock units (RSUs), and 60 shares were available for future awards. RSUs granted to employees generally vest over three years , with one-third vesting each year and RSUs granted to non-employee directors vest over one year . Restricted Stock Units The following table summarizes the changes in the number of restricted stock units under the 2022 Equity Incentive Plan and inducement awards over the period from December 31, 2023 to December 31, 2025: Weighted Average Grant Date Shares Fair Value Outstanding January 1, 2024 13 $ 330,346.15 Granted 4 88,500.00 Vested ( 3 ) 326,000.00 Forfeited ( 5 ) 204,600.00 Outstanding December 31, 20 …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

NOTE 14 FAIR VALUE MEASUREMENTS Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Assets and liabilities measured at fair value are classified using the following hierarchy, which is based upon the transparency of inputs to the valuation as of the measurement date: Level 1 Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in active markets that the Company has the ability to access at the measurement date. Level 2 Observable inputs such as quoted prices for similar instruments and quoted prices in markets that are not active, and inputs that are directly observable or can be corroborated by observable market data. The types of assets and liabilities included in Level 2 are typically either comparable to actively traded securities or contracts, such as treasury securities with pricing interpolated from recent trades of similar securities, or priced with models using highly observable inputs, such as commodity options priced using observable forward prices and volatilities. Level 3 Significant inputs to pricing that have little or no observability as of the reporting date. The types of assets and liabilities included in Level 3 are those with inputs requiring significant management judgment or estimation, such as the complex and subjective models and forecasts used to determine the fair value of financi …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

NOTE 7 GOODWILL AND INTANGIBLE ASSETS The Company reassesses the value of our reporting units and related goodwill balances annually on October 1 and at other times if events have occurred or circumstances exist that indicate the carrying amount of goodwill may not be recoverable. On July 4, 2025, the President signed H.R. 1, the One Big Beautiful Bill Act, or OBBBA, into law, which accelerates the phase-outs and terminations of various eligible tax credits enacted as part of the Inflation Reduction Act and places restrictions on continued receipt of tax credits by specified foreign entities and foreign influenced entities. The OBBBA terminates several consumer-facing tax credits, including the Residential Clean Energy Credit (Section 25D) and the Energy Efficient Home Improvement Credit (Section 25C), effective at the end of 2025. The Section 25D credit previously allowed homeowners to claim a 30% credit for installing rooftop solar panels and related equipment. The OBBBA also has an accelerated phaseout of the Clean Electricity Investment Tax Credit (Section 48E) and the Clean Electricity Production Tax Credit (45Y). In this accelerated phase out, projects must begin construction by July 4, 2026, or be placed in service by December 31, 2027, to qualify for these credits. The Company performed a quantitative assessment related to the recoverability of our goodwill for our two reporting units as a result of the material decline in our forecasted revenues and operating results …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 12 - INCOME TAXES Income tax expense from continuing operations consists of the following: Year Ended December 31 2025 2024 Current year income taxes : State 51,140 76,398 51,140 76,398 Deferred income taxes: Federal $ $ ( 41,579 ) ( 41,579 ) Income tax expense $ 51,140 $ 34,819 The Company has elected to prospectively adopt the guidance in ASU No, 2023-09, Income Taxes (Topic 740): Improvements to Income Taxes Disclosures. The reconciliation of the federal statutory income tax rate to the Company's provision for income taxes for the year ended December 31, 2025 in accordance with the guidance in ASU No. 2023-09 is as follows: Year Ended December 31, 2025 $ % U.S. Federal Statutory Tax Rate $ ( 2,276,756 ) 21.0 % State and Local Income Taxes, Net of Federal Income Tax Effect (1) 40,400 ( 0.4 ) Nontaxable or Nondeductible Items: Financing Fees 238,672 ( 2.2 ) Fair value remeasurement of warrant liability 1,581,519 ( 14.6 ) Fair value remeasurement of contingent forward contract ( 188,807 ) 1.7 Other 40,815 ( 0.4 ) Changes in Valuation Allowances 618,100 ( 5.7 ) Changes in Unrecognized Tax Benefits ( 2,803 ) 0.1 Other Adjustments $ 51,140 ( 0.5 %) (1) State taxes in New York made up the majority (greater than 50 %) of the tax effect in this category. The reconciliation of the federal statutory income tax rate to the Companys provision for income taxes for the year ended December 31, 2024 in accordance with the guidance prior to the adoption of ASU 2023-09 is as follows: Ye …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Accounting Standards Issued In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements: Codification Amendments in Response to the SECs Disclosure Update and Simplification Initiative, which is intended to clarify or improve disclosure and presentation requirements of a variety of topics. Many of the amendments will allow users to more easily compare entities subject to the SECs existing disclosures with those entities that were not previously subject to the requirements and align the requirements in the FASB accounting standard codification with the SECs regulations. The amendments in ASU 2023-06 will become effective on the date the related disclosures are removed from Regulation S-X or Regulation S-K by the SEC, and will no longer be effective if the SEC has not removed the applicable disclosure requirement by June 30, 2027. Early adoption is prohibited. The Company is currently evaluating this ASU and the impact it may have on its consolidated financial statements. In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires disclosure in the notes to the financial statements of specified information about certain costs and expenses. The amendments are effective for fiscal years beginning after December 15, 2026, and for interim periods within fiscal years beginning after December 15, 2027. Early adoption is per …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

NOTE 9 RELATED PARTY TRANSACTIONS Related party receivables The Company has provided advances to employees resulting in a balance as of December 31, 2025 and 2024 of $ 21,412 and $ 23,471 , 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. The Company leased its New York office from a company owned by the prior owners of SUNation NY, one of whom is an officer and another the Chief Executive Officer and director of the Company, until September 12, 2024, when the building and related lease was sold to a third-party. See further information regarding these leases within Note 5, Leases. Debt As of December 31, 2025, 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 this debt within Note 8, Commitments and Contingencies. …

RelatedPartyTransactionsDisclosureTextBlock · excerpt; the full note is in the filing

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, 2025 and 2024: Revenue by Type SUNation NY HEC 2025 2024 2025 2024 Residential contracts $ 40,215,497 $ 30,715,255 $ 20,993,980 $ 15,984,618 Commercial contracts 6,894,923 6,700,469 189,694 429,259 Service revenue 2,489,891 2,317,638 1,121,542 714,514 $ 49,600,311 $ 39,733,362 $ 22,305,216 $ 17,128,391 The following table disaggregates revenue based on the timing of satisfaction of the performance obligations for the years ended December 31, 2025 and 2024: SUNation NY HEC 2025 2024 2025 2024 Performance obligations satisfied at a point in time $ 42,705,388 $ 33,032,893 $ 22,115,522 $ 16,699,132 Performance obligations satisfied over time 6,894,923 6,700,469 189,694 429,259 $ 49,600,311 $ 39,733,362 $ 22,305,216 $ 17,128,391 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. Retainage on commercial revenue contracts is included within accounts …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

NOTE 13 SEGMENT INFORMATION The Companys 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 in New York. The Hawaii Energy Connection (HEC) segment provides the same products and services to residential and commercial customers in Hawaii. The Companys CODM is represented by a committee that includes the Companys 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 Companys 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 …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) and the rules and regulations of the Securities and Exchange Commission (SEC) and include the accounts of the Company and its wholly owned operating subsidiaries. Any reference in these notes to applicable guidance is meant to refer to the authoritative GAAP as found in the Accounting Standards Codification (ASC) and Accounting Standards Update (ASU) of the Financial Accounting Standards Board (FASB). Principles of Consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany transactions and accounts have been eliminated. Use of Estimates The presentation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company uses estimates based on the best information available in recording transactions and balances resulting from operations. Actual results could materially differ from those estimates. The Companys estimates consist principally of allowances for credit losses, revenue recognition on commer …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

NOTE 11 EQUITY Series A Preferred Stock In June 2021, the Company entered into a stock purchase agreement to issue Series A Preferred Stock. The Companys outstanding Series A Preferred Stock contained anti-dilution provisions that would increase the number of shares issuable upon conversion, and lower the conversion price of the Series A Preferred Stock if the Company issues equity securities at a price less than the current conversion price of the Series A Preferred Stock at the time of such issuance. In February 2024, the Company entered into a Limited Waiver and Amendment (Waiver) and the investors agreed to a floor of $ 105.00 ($ 0.14 prior to the Reverse Stock Splits) with respect to the adjustment set forth for the conversion price and to waive future anti-dilution protection with respect to 50 % of the shares of Preferred Stock held by such purchasers as of the date of the Waiver. The Company determined that the Waiver resulted in an extinguishment of the Series A Preferred Stock. As a result, the Series A Preferred Stock was revalued immediately after the Waiver in February 2024. The difference between the previous carrying amount and the fair value of $ 751,125 was recognized as a deemed dividend in the three months ended March 31, 2024 that reduced additional paid-in-capital (APIC) and income available to common shareholders in calculating earnings per share. In addition, management evaluated the Series A Preferred Stock after the modifications and determined that t …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 16 SUBSEQUENT EVENTS The Company has evaluated subsequent events through the date of this filing. As discussed in Note 8, Commitments and Contingencies, the Company acquired a promissory note with a former shareholder and member of SUNation NY. On January 30, 2026, the Company reached agreement to eliminate this promissory note. Prior to reaching this settlement, the promissory note carried remaining principal balance of approximately $ 1.1 million. To eliminate the long-term promissory note, significantly reduce this remaining multi-year obligation and improve financial flexibility, the Company negotiated a one-time lump-sum settlement payment of $ 800,000 , which payment was made on January 30, 2026. In connection with the elimination of the long-term promissory note, the Company utilized its existing $ 1 million Revolver with MBB. Prior to drawing on this facility in January 2026, no amounts had been drawn on the Revolver. …

SubsequentEventsTextBlock · excerpt; the full note is in the filing

NOTE 6 COMMITMENTS AND CONTINGENCIES Revolving Line of Credit On April 14, 2025, the Company entered into a Secured Revolving Line of Credit Agreement (the Revolving Credit Agreement) with MBB Energy, LLC (MBB), an affiliate of the Company, as lender, providing for a $ 1.0 million revolving credit facility (the Revolver). The Revolver matures on April 14, 2026 , unless earlier terminated pursuant to its terms. Borrowings, if any, under the Revolver will bear interest at a fixed annual rate of 8 %, payable monthly in arrears on the first day of each calendar month. The Revolving Credit Agreement includes customary affirmative and negative covenants, as well as standard events of default, which, if triggered, may permit the lender to accelerate all outstanding obligations under the facility. The Company may repay outstanding borrowings at any time without penalty. As of September 30, 2025, no amounts have been drawn on the Revolver. As of September 30, 2025, the Company was in compliance with all covenants and other requirements of the Revolving Credit Agreement. Loan Payable Pineapple Energy LLC entered into a loan on December 11, 2020 in an original amount of $ 7,500,000 payable to Hercules Capital, Inc. (Hercules) under a loan and security agreement (the Term Loan Agreement). This loan accrued interest at 10 %, payable-in-kind (PIK) and was initially due and payable on December 10, 2023. There were no financial covenants associated with this loan. This loan was used to acqui …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

The following table disaggregates revenue based on type: Revenue by Type Three Months Ended September 30 SUNation NY HEC 2025 2024 2025 2024 Residential contracts $ 9,919,664 $ 6,522,508 $ 5,737,702 $ 3,612,274 Commercial contracts 2,228,443 3,618,023 322,053 Service revenue 866,844 499,364 240,983 144,164 $ 13,014,951 $ 10,639,895 $ 5,978,685 $ 4,078,491 Revenue by Type Nine Months Ended September 30 SUNation NY HEC 2025 2024 2025 2024 Residential contracts $ 25,832,477 $ 23,138,960 $ 11,203,996 $ 10,506,104 Commercial contracts 4,766,323 5,107,418 139,319 308,910 Service revenue 1,781,554 1,878,134 970,859 547,477 $ 32,380,354 $ 30,124,512 $ 12,314,174 $ 11,362,491 The following table disaggregates revenue based on the timing of satisfaction of the performance obligations: Three Months Ended September 30 SUNation NY HEC 2025 2024 2025 2024 Performance obligations satisfied at a point in time $ 10,786,508 $ 7,021,872 $ 5,978,685 $ 3,756,438 Performance obligations satisfied over time 2,228,443 3,618,023 322,053 $ 13,014,951 $ 10,639,895 $ 5,978,685 $ 4,078,491 Nine Months Ended September 30 SUNation NY HEC 2025 2024 2025 2024 Performance obligations satisfied at a point in time $ 27,614,031 $ 25,017,094 $ 12,174,855 $ 11,053,581 Performance obligations satisfied over time 4,766,323 5,107,418 139,319 308,910 $ 32,380,354 $ 30,124,512 $ 12,314,174 $ 11,362,491 …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

"NOTE 8 SHARE-BASED COMPENSATION 2022 Equity Incentive Plan On January 24, 2022 the CSI board of directors adopted, and on March 16, 2022 the Companys shareholders approved, the Companys 2022 Equity Incentive Plan (2022 Plan), which became effective on March 28, 2022. The 2022 Plan authorizes incentive awards to officers, key employees, non-employee directors, and consultants in the form of options (incentive and non-qualified), stock appreciation rights, restricted stock awards, stock unit awards, and other stock-based awards. Following amendments approved on December 7, 2022 and July 19, 2024, the 2022 Plan authorizes the issuance of up to 67 shares of common stock ( 10,000,000 prior to the Reverse Stock Splits). At September 30, 2025, 4 shares had been issued under the 2022 Plan, 3 shares were subject to currently outstanding unvested restricted stock units (RSUs), and 60 shares were available for grant under future awards. Inducement Grants On October 10, 2022, the board of directors approved an inducement grant of 1 RSU ( 54,852 prior to the Reverse Stock Splits) in connection with the hiring of a new Chief Financial Officer. On November 6, 2022, the board of directors approved inducement grants totaling 1 RSU ( 89,698 prior to the Reverse Stock Splits) in connection with the hiring of Senior Vice Presidents in connection with the SUNation NY acquisition. Changes in Restricted Stock Units Outstanding The following table summarizes the changes in the number of RSUs during …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

NOTE 12 FAIR VALUE MEASUREMENTS The accounting guidance establishes a valuation hierarchy for disclosure of the inputs to valuation used to measure fair value. This hierarchy prioritizes the inputs into three broad levels as follows: Level 1 Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in active markets that the Company has the ability to access at the measurement date. Level 2 Observable inputs such as quoted prices for similar instruments and quoted prices in markets that are not active, and inputs that are directly observable or can be corroborated by observable market data. The types of assets and liabilities included in Level 2 are typically either comparable to actively traded securities or contracts, such as treasury securities with pricing interpolated from recent trades of similar securities, or priced with models using highly observable inputs, such as commodity options priced using observable forward prices and volatilities. Level 3 Significant inputs to pricing that have little or no observability as of the reporting date. The types of assets and liabilities included in Level 3 are those with inputs requiring significant management judgment or estimation, such as the complex and subjective models and forecasts used to determine the fair value of financial instruments. Financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2025 and December 31, 2024 are summarized below. Septem …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

NOTE 5 GOODWILL AND INTANGIBLE ASSETS The Company reassesses the value of our reporting units and related goodwill balances annually on October 1 and at other times if events have occurred or circumstances exist that indicate the carrying amount of goodwill may not be recoverable. On July 4, 2025, the President signed H.R. 1, the One Big Beautiful Bill Act, or OBBBA, into law, which accelerates the phase-outs and terminations of various eligible tax credits enacted as part of the Inflation Reduction Act and places restrictions on continued receipt of tax credits by specified foreign entities and foreign influenced entities. The OBBBA terminates several consumer-facing tax credits, including the Residential Clean Energy Credit (Section 25D) and the Energy Efficient Home Improvement Credit (Section 25C), effective at the end of 2025. The Section 25D credit previously allowed homeowners to claim a 30% credit for installing rooftop solar panels and related equipment. The OBBBA also has an accelerated phaseout of the Clean Electricity Investment Tax Credit (Section 48E) and the Clean Electricity Production Tax Credit (45Y). In this accelerated phase out, projects must begin construction by July 4, 2026, or be placed in service by December 31, 2027, to qualify for these credits. The Company performed a quantitative assessment related to the recoverability of our goodwill for our two reporting units as a result of the material decline in our forecasted revenues and operating results …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 10 INCOME TAXES In the preparation of the Companys condensed consolidated financial statements, management calculates income taxes based upon the estimated effective rate applicable to operating results for the full fiscal year. This includes estimating the current tax liability as well as assessing differences resulting from different treatment of items for tax and book accounting purposes. These differences result in deferred tax assets and liabilities, which are recorded on the balance sheet. Management analyzes these assets and liabilities regularly and assesses the likelihood that deferred tax assets will be recovered from future taxable income. The Companys effective income tax rate was ( 4.4 %) and 0.0 % for the three months ended September 30, 2025 and 2024, respectively an ( 0.3 %) and 0.0 % for the nine months ended September 30, 2025 and 2024. The effective tax rate differs from the federal tax rate of 21 % due to state income taxes and changes in valuation allowances related to deferred tax assets. On July 4, 2025, the President signed H.R. 1, the One Big Beautiful Bill Act, into law. The legislation includes several changes to federal tax law that generally allow for more favorable deductibility of certain business expenses beginning in 2025, including the restoration of immediate expensing of domestic R&D expenditures, reinstatement of 100% bonus depreciation, and more favorable rules for determining the limitation on business interest expense. Certain …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Accounting Standards Issued In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements: Codification Amendments in Response to the SECs Disclosure Update and Simplification Initiative, which is intended to clarify or improve disclosure and presentation requirements of a variety of topics. Many of the amendments will allow users to more easily compare entities subject to the SECs existing disclosures with those entities that were not previously subject to the requirements and align the requirements in the FASB accounting standard codification with the SECs regulations. The amendments in ASU 2023-06 will become effective on the date the related disclosures are removed from Regulation S-X or Regulation S-K by the SEC, and will no longer be effective if the SEC has not removed the applicable disclosure requirement by June 30, 2027. Early adoption is prohibited. The Company is currently evaluating this ASU and the impact it may have on its consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which expands disclosures in an entitys income tax rate reconciliation table and regarding cash taxes paid both in the U.S. and foreign jurisdictions. This ASU is effective for fiscal periods beginning after December 15, 2024, with early adoption permitted. The Company discloses its income tax rate reconciliation in its annual financial statements only and does not expect the adoption of t …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

NOTE 7 RELATED PARTY TRANSACTIONS Related party receivables The Company has provided advances to employees resulting in a balance as of September 30, 2025 and December 31, 2024 of $ 21,571 and $ 23,471 , 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. The Company leased its New York office from a company owned by the prior owners of SUNation NY, one of whom is an officer and another the Interim Chief Executive Officer and director of the Company, until September 12, 2024, when the building and related lease was sold to a third-party. Debt As of September 30, 2025, 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 within Note 6, Commitments and Contingencies. …

RelatedPartyTransactionsDisclosureTextBlock · excerpt; the full note is in the filing

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 September 30 SUNation NY HEC 2025 2024 2025 2024 Residential contracts $ 9,919,664 $ 6,522,508 $ 5,737,702 $ 3,612,274 Commercial contracts 2,228,443 3,618,023 322,053 Service revenue 866,844 499,364 240,983 144,164 $ 13,014,951 $ 10,639,895 $ 5,978,685 $ 4,078,491 Revenue by Type Nine Months Ended September 30 SUNation NY HEC 2025 2024 2025 2024 Residential contracts $ 25,832,477 $ 23,138,960 $ 11,203,996 $ 10,506,104 Commercial contracts 4,766,323 5,107,418 139,319 308,910 Service revenue 1,781,554 1,878,134 970,859 547,477 $ 32,380,354 $ 30,124,512 $ 12,314,174 $ 11,362,491 The following table disaggregates revenue based on the timing of satisfaction of the performance obligations: Three Months Ended September 30 SUNation NY HEC 2025 2024 2025 2024 Performance obligations satisfied at a point in time $ 10,786,508 $ 7,021,872 $ 5,978,685 $ 3,756,438 Performance obligations satisfied over time 2,228,443 3,618,023 322,053 $ 13,014,951 $ 10,639,895 $ 5,978,685 $ 4,078,491 Nine Months Ended September 30 SUNation NY HEC 2025 2024 2025 2024 Performance obligations satisfied at a point in time $ 27,614,031 $ 25,017,094 $ 12,17 …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

NOTE 11 SEGMENT INFORMATION The Companys 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 Companys CODM is represented by a committee that includes the Companys 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 Companys operating segments, along with operating and other expenses related to legacy CSI assets. During 2024 management determined that their two operating segments no longer met the criteria to be aggregated into one reportable segment due to changes in economic forecasts and the Companys plans for integrating SUNation NY and HEC. As a result, management determined HEC and SUNation NY to be distinct reportable segments. Prior period amounts have been recast for comparative purposes to reflect this change, which had no impact on the Companys consolidated financial position, results of operations, …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) and include the accounts of the Company and its wholly owned operating subsidiaries. Any reference in these notes to applicable guidance is meant to refer to the authoritative GAAP as found in the Accounting Standards Codification (ASC) and Accounting Standards Update (ASU) of the Financial Accounting Standards Board (FASB). Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with GAAP have been condensed or omitted. In the opinion of management, the accompanying condensed consolidated financial statements include all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of the results for the interim periods presented. The condensed consolidated financial statements and notes thereto should be read in conjunction with the Companys audited financial statements and notes thereto for the year ended December 31, 2024 included on the Companys Annual Report on Form 10-K, as filed with the Securities and Exchange Commission (SEC) on April 15, 2025. The accompanying condensed consolidated balance sheet at December 31 , 2024 has been derived from the audited balance sheet at December 31, 2024 contained in the above-referenced For …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

NOTE 9 EQUITY Series A Preferred Stock In June 2021, the Company entered into a stock purchase agreement to issue Series A Preferred Stock. At such time, the Series A Preferred Stock contained certain anti-dilution provisions. In November 2022, the Company amended and restated the agreement under which Series A Preferred shareholders agreed to waive such provisions in exchange for certain concessions from the Company. The Companys outstanding Series A Preferred Stock contained anti-dilution provisions that would increase the number of shares issuable upon conversion, and lower the conversion price of the Series A Preferred Stock if the Company issues equity securities at a price less than the current conversion price of the Series A Preferred Stock at the time of such issuance. In February 2024, the Company entered into a Limited Waiver and Amendment (Waiver) and the investors agreed to a floor of $ 21,000.00 ($ 0.14 prior to the Reverse Stock Splits) with respect to the adjustment set forth for the conversion price and to waive future anti-dilution protection with respect to 50 % of the shares of Preferred Stock held by such purchasers as of the date of the Waiver. The Company is required to analyze amendments to preferred stock terms to determine the appropriate method of accounting to be applied. The Company determined that the Waiver resulted in an extinguishment of the Series A Preferred Stock. As a result, the Series A Preferred Stock was revalued immediately after the …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 14 SUBSEQUENT EVENTS The Company has evaluated subsequent events through the date of this filing. On November 4, 2025, the Company provided formal written notice to Needham & Company, LLC (Needham) of the termination of the Sales Agreement entered into with Needham on August 18, 2025. No sales or offering of shares were made thereunder since entry into this Sales Agreement. …

SubsequentEventsTextBlock · excerpt; the full note is in the filing