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Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2024

Summary of Significant Accounting Policies [Abstract]

Schedule of Condensed Consolidated Balance Sheet

Impact to the condensed consolidated balance sheet as of June 30, 2024

		As reported				Adjustment				As restated
Accounts receivable, net		$	7,207,854			$	322,096			$	7,529,950
Prepaid installation costs		$	865,327			$	281,878			$	1,147,205
Prepaid expenses and other current assets		$	4,043,640			$	(2,474,173	)		$	1,569,467
Total current assets		$	17,895,800			$	(1,870,199	)		$	16,025,601
Other assets		$	235,442			$	89,388			$	324,830
Property, equipment and other fixed assets, net		$	2,843,624			$	(554,018	)		$	2,289,606
Right of use financing lease assets		$	-			$	515,248			$	515,248
Total assets		$	49,071,069			$	(1,819,581	)		$	47,251,488
Current portion of long-term debt		$	420,745			$	(113,319	)		$	307,426
Current portion of obligations under financing leases		$	-			$	124,293			$	124,293
Contract liabilities		$	279,901			$	155,588			$	435,489
Total current liabilities		$	8,234,084			$	166,562			$	8,400,646
Obligations under financing leases, non-current		$	-			$	415,619			$	415,619
Long-term debt		$	1,175,047			$	(489,418	)		$	685,629
Total liabilities		$	12,205,927			$	92,763			$	12,298,690
Additional paid in capital		$	2,033,500			$	384,388			$	2,417,888
Accumulated deficit		$	(53,155,439	)		$	(2,296,732	)		$	(55,452,171	)
Total stockholders’ deficit		$	(51,117,913	)		$	(1,912,344	)		$	(53,030,257	)
Total liabilities, redeemable noncontrolling interests and stockholders’ equity		$	49,071,069			$	(1,819,581	)		$	47,251,488

Schedule of Condensed Consolidated Statement of Operations

Impact to the condensed consolidated statement of operations for the three months ended June 30, 2024

		As reported				Adjustment				As restated
Revenue, net of financing fees		$	7,714,200			$	84,446			$	7,798,646
Total revenue		$	14,711,826			$	84,446			$	14,796,272
Cost of goods sold (exclusive of depreciation and amortization shown below)		$	10,325,979			$	(3,266,140	)		$	7,059,839
Depreciation and amortization		$	456,841			$	(3,172	)		$	453,669
Sales and marketing		$	215,192			$	4,206,871			$	4,422,063
General and administrative		$	5,909,385			$	(385,814	)		$	5,523,571
Total operating expenses		$	16,907,397			$	551,745			$	17,459,142
Loss from operations		$	(2,195,571	)		$	(467,299	)		$	(2,662,870	)
Interest expense		$	(34,233	)		$	(15,575	)		$	(49,808	)
Total other income (expense), net		$	844,588			$	(15,575	)		$	829,013
Net loss before taxes		$	(1,350,983	)		$	(482,874	)		$	(1,833,857	)
Income tax benefit		$	61,185			$	15,353			$	76,538
Net loss		$	(1,289,798	)		$	(467,521	)		$	(1,757,319	)
Net loss subsequent to the Business Combination		$	(1,289,798	)		$	(467,521	)		$	(1,757,319	)
Less: Net (loss) attributable to  redeemable noncontrolling interests		$	(1,457,036	)		$	(22,493	)		$	(1,479,529	)
Net loss attributable to Class A common stock		$	167,238			$	(445,028	)		$	(277,790	)
Basic and diluted net loss per common unit		$	0.03			$	(0.09	)		$	(0.06	)

Impact to the condensed consolidated statement of operations for the three months ended June 30, 2023

		As reported				Adjustment				As restated
Cost of goods sold (exclusive of depreciation and amortization shown below)		$	24,444,491			$	(6,362,492	)		$	18,081,999
Depreciation and amortization		$	489,566			$	(6,215	)		$	483,351
Sales and marketing		$	490,875			$	6,419,138			$	6,910,013
General and administrative		$	3,826,017			$	(90,383	)		$	3,735,634
Total operating expenses		$	29,250,949			$	(39,952	)		$	29,210,997
Income from operations		$	828,416			$	39,952			$	868,368
Interest expense		$	(23,999	)		$	(8,144	)		$	(32,143	)
Total other income (expense), net		$	(31,168	)		$	(8,144	)		$	(39,312	)
Net income before taxes		$	797,248			$	31,808			$	829,056
Net income		$	797,248			$	31,808			$	829,056
Less: Net income attributable to Sunergy Renewables LLC prior to the Business Combination		$	-			$	829,056			$	829,056

Impact to the condensed consolidated statement of operations for the six months ended June 30, 2024

		As reported				Adjustment				As restated
Revenue, net of financing fees		$	18,765,221			$	362,812			$	19,128,033
Total revenue		$	34,575,616			$	362,812			$	34,938,428
Cost of goods sold (exclusive of depreciation and amortization shown below)		$	27,689,680			$	(6,671,875	)		$	21,017,805
Depreciation and amortization		$	919,542			$	(6,344	)		$	913,198
Sales and marketing		$	334,175			$	10,641,675			$	10,975,850
General and administrative		$	9,585,444			$	(842,451	)		$	8,742,993
Total operating expenses		$	38,528,841			$	3,121,005			$	41,649,846
Income from operations		$	(3,953,225	)		$	(2,758,193	)		$	(6,711,418	)
Interest expense		$	(71,287	)		$	(13,743	)		$	(85,030	)
Total other income (expense), net		$	669,534			$	(13,743	)		$	655,791
Net loss before taxes		$	(3,283,691	)		$	(2,771,936	)		$	(6,055,627	)
Income tax benefit		$	101,818			$	89,388			$	191,206
Net loss		$	(3,181,873	)		$	(2,682,548	)		$	(5,864,421	)
Net loss subsequent to the Business Combination		$	(2,658,192	)		$	(2,682,548	)		$	(5,340,740	)
Less: Net loss attributable to redeemable noncontrolling interests		$	(1,581,239	)			(1,950,220	)			(3,531,459	)
Net loss attributable to Class A common stock		$	(1,076,953	)		$	(732,328	)		$	(1,809,281	)
Basic and diluted net loss per common unit		$	(0.36	)		$	(0.24	)		$	(0.60	)

Impact to the condensed consolidated statement of operations for the six months ended June 30, 2023

		As reported				Adjustment				As restated
Cost of goods sold (exclusive of depreciation and amortization shown below)		$	39,253,706			$	(10,481,072	)		$	28,772,634
Depreciation and amortization		$	922,165			$	(11,972	)		$	910,193
Sales and marketing		$	1,040,480			$	10,177,854			$	11,218,334
General and administrative		$	5,152,604			$	260,601			$	5,413,205
Total operating expenses		$	46,368,955			$	(54,589	)		$	46,314,366
Income from operations		$	2,441,899			$	54,589			$	2,496,488
Interest expense		$	(39,543	)		$	(12,981	)		$	(52,524	)
Total other income (expense), net		$	(41,712	)		$	(12,981	)		$	(54,693	)
Net income before taxes		$	2,400,187			$	41,608			$	2,441,795
Net income		$	2,400,187			$	41,608			$	2,441,795
Less: Net income attributable to Sunergy Renewables LLC prior to the Business Combination		$	-			$	2,441,795			$	2,441,795

Schedule of Condensed Consolidated Statement of Stockholders’ Equity

Impact to the condensed consolidated statement of changes in redeemable noncontrolling interests and stockholders’ equity for the three and six months ended June 30, 2024

		As reported				Adjustment				As restated
Class B units
For the three months ended March 31, 2024:
Establishment of redeemable noncontrolling interests		$	26,089,174			$	27,374			$	26,116,548
Subsequent measurement of redeemable noncontrolling interests		$	174,520,120			$	1,900,353			$	176,420,473
Net loss		$	(8,348,294	)		$	(1,927,727	)		$	(10,276,021	)
For the three months ended June 30, 2024:
Subsequent measurement of redeemable noncontrolling interests		$	(118,284,464	)		$	406,881			$	(117,877,583	)
Net income (loss)		$	(1,457,036	)		$	(406,881	)		$	(1,863,917	)
Class A Common Stock - Shares
Issuance of Class A Shares to third party advisors			553,207				(375,000	)			178,207
Stock-based compensation			-				375,000				375,000
Class A Common Stock - Amount
Issuance of Class A Shares to third party advisors		$	55			$	(37	)		$	18
Stock-based compensation		$	-			$	37			$	37
Additional paid-in capital
For the three months ended March 31, 2024:
Issuance of Class A Shares to third party advisors		$	2,765,980			$	(1,874,963	)		$	891,017
Establishment on noncontrolling interests		$	(26,089,174	)		$	(27,374	)		$	(26,116,548	)
Stock-based compensation			504,834				2,613,713				3,118,547
Subsequent measurement of redeemable noncontrolling interests		$	(5,335,650	)		$	(711,376	)		$	(6,047,026	)
For the three months ended June 30, 2024:
Net income (loss)		$	(384,388	)		$	384,388			$	-
Balance, June 30, 2024		$	2,033,500			$	384,388			$	2,417,888
Accumulated deficit
Balance December 31, 2023		$	(564,799	)		$	31,454			$	(533,345	)
Subsequent measurement of redeemable noncontrolling interests		$	(169,184,470	)		$	(1,188,977	)		$	(170,373,447	)
Net loss		$	(1,244,191	)		$	(287,300	)		$	(1,531,491	)
Balance, March 31, 2024		$	(171,607,141	)		$	(1,444,823	)		$	(173,051,964	)
Subsequent measurement of redeemable noncontrolling interests		$	118,284,464			$	(406,881	)		$	117,877,583
Net income (loss)		$	167,238			$	(445,028	)		$	(277,790	)
Balance, June 30, 2024		$	(53,155,439	)		$	(2,296,732	)		$	(55,452,171	)
Total Stockholders’ Deficit
Balance December 31, 2023		$	30,591,065				31,454				30,622,519
Issuance of Class A Shares to third party advisors		$	2,766,035			$	(1,875,000	)		$	891,035
Establishment of redeemable noncontrolling interests		$	(26,089,174	)		$	(27,374	)		$	(26,116,548	)
Stock-based compensation			504,834				2,613,750				3,118,584
Subsequent measurement of redeemable noncontrolling interests		$	(174,520,120	)		$	(1,900,353	)		$	(176,420,473	)
Net loss		$	(1,244,191	)		$	(287,300	)		$	(1,531,491	)
Balance, March 31, 2024		$	(171,603,115	)		$	(1,444,823	)		$	(173,047,938	)
Subsequent measurement of redeemable noncontrolling interests		$	118,284,464			$	(406,881	)		$	117,877,583
Net income		$	(217,150	)		$	(60,640	)		$	(277,790	)
Balance, June 30, 2024		$	(51,117,913	)		$	(1,912,344	)		$	(53,030,257	)

		As reported				Adjustment				As restated
Class B units
Net income prior to the business combination		$	1,602,939			$	(1,602,939	)		$	-
Balance, March 31, 2023		$	1,602,939			$	(1,602,939	)		$	-
Net income prior to the business combination		$	797,249			$	(797,249	)		$	-
Balance, June 30, 2023		$	2,400,188			$	(2,400,188	)		$	-
Retained earnings
Net income prior to the business combination		$	-			$	1,612,737				1,612,737
Balance, March 31, 2023		$	(46,341	)		$	1,612,737			$	1,566,396
Net income prior to the business combination		$	-			$	829,058			$	829,058
Balance, June 30, 2023		$	(407,660	)		$	2,441,795			$	2,034,135
Total Stockholders’ Equity
Net income prior to the business combination		$	-			$	1,612,737			$	1,612,737
Balance, March 31, 2023		$	31,109,523			$	1,612,737			$	32,722,260
Net income prior to the business combination		$	-			$	829,058			$	829,058
Balance, June 30, 2023		$	30,748,204			$	2,441,795			$	33,189,999

Schedule of Condensed Consolidated Statement of Cash Flows

Impact to the condensed consolidated statement of cash flows for the six months ended June 30, 2024

		As reported				Adjustment				As restated
Cash Flows from Operating Activities
Net loss		$	(3,181,873	)		$	(2,682,548	)		$	(5,864,421	)
Adjustment to reconcile net loss to cash used in operating activities:
Depreciation and amortization		$	919,542			$	(74,580	)		$	844,962
Non-cash finance lease expense		$	-			$	68,236			$	68,236
Stock based compensation expense		$	2,922,722				2,675,967				5,598,689
Changes in operating assets and liabilities:
Accounts receivable		$	(1,859,808	)		$	(2,592,213	)		$	(4,452,021	)
Accounts receivable due from related parties		$	(2,692,841	)		$	2,270,117			$	(422,724	)
Accrued expenses and other current liabilities		$	(829,506	)		$	(517,521	)		$	(1,347,027	)
Accrued expenses and other current liabilities due to related parties		$	(2,148,960	)		$	517,521			$	(1,631,439	)
Prepaid installation costs		$	4,049,737			$	(281,878	)		$	3,767,859
Prepaids and other current assets		$	(1,459,636	)		$	536,957				(922,679	)
Other assets		$	(111,993	)		$	(89,388	)		$	(201,381	)
Contract liabilities		$	(3,889,354	)		$	252,273			$	(3,637,081	)
Contract liabilities due to related parties		$	(1,054,263	)		$	(96,685	)		$	(1,150,948	)
Net cash used in operating activities		$	(12,338,008	)		$	(13,742	)		$	(12,351,750	)
Cash flows from Financing Activities
Repayments of debt		$	(198,624	)		$	71,517			$	(127,107	)
Repayments of finance lease		$	-			$	(57,775	)		$	(57,775	)
Net cash provided by financing activities		$	9,988,651			$	13,742			$	10,002,393
Supplemental Cash Flow Information
Cash paid for interest		$	70,284			$	(10,046	)		$	60,238
Non-cash transactions
Issuance of Class A common stock to vendors		$	2,478,480			$	(1,587,445	)		$	891,035
Preferred dividends		$	8,224,091			$	384,388			$	8,608,479

Impact to the condensed consolidated statement of cash flows for the six months ended June 30, 2023

		As reported				Adjustment				As restated
Cash Flows from Operating Activities
Net income		$	2,400,187			$	41,608			$	2,441,795
Adjustment to reconcile net income to cash used in operating activities:
Depreciation and amortization		$	922,165			$	(42,616	)		$	879,549
Non-cash operating lease expense		$	-			$	250,618			$	250,618
Non-cash finance lease expense		$	-			$	30,644			$	30,644
Changes in operating assets and liabilities:
Accrued expenses and other current liabilities		$	2,083,766			$	(15,898	)		$	2,067,868
Contract liabilities		$	-			$	(1,046,093	)		$	(1,046,093	)
Operating lease payments		$	(1,046,093	)		$	811,372			$	(234,721	)
Net cash provided by operating activities		$	1,849,251				29,635				1,878,886
Cash flows from Investing Activities
Purchases of property, equipment and other fixed assets		$	(784,209	)		$	745,792			$	(38,417	)
Net cash used in investing activities		$	(784,209	)			745,792				(38,417	)
Cash flows from Financing Activities
Proceeds from the issuance of debt		$	745,975			$	(745,975	)		$	-
Repayments of debt		$	(138,347	)			184				(138,163	)
Repayments of finance lease			-			$	(29,636	)		$	(29,636	)
Net cash provided by (used in) financing activities		$	79,986			$	(775,427	)		$	(695,441	)
Supplemental Cash Flow Information
Cash paid for interest		$	37,851			$	311			$	38,162
Non-cash transactions
Recording of operating right-of-use assets and lease liability		$	-			$	653,663			$	653,663
Recording of finance right-of-use assets and lease liability		$	-			$	682,365			$	682,365

Schedule of Revenue Recognition

Thus, revenue recognition is in turn matched with the installation equipment costs and expense associated with the completion of each project.

		For the three months ended June 30,								For the six months ended June 30,
		2024				2023				2024				2023
Solar Systems Installations, gross		$	18,848,214			$	40,936,775			$	45,829,566			$	64,309,392
Financing Fees			(4,790,013	)			(12,533,767	)			(12,727,590	)			(18,784,295	)
Solar Systems Installations, net			14,058,201				28,403,008				33,101,976				45,525,097
Roofing Installations			738,071				1,676,357				1,836,452				3,285,757
Total net revenues		$	14,796,272			$	30,079,365			$	34,938,428			$	48,810,854

Schedule of Change in Contract Liabilities

The following table summarizes the change in contract liabilities:

		June 30, 2024				December 31, 2023
Contract liabilities, beginning of the period		$	5,223,518			$	1,149,047
Revenue recognized from amounts included in contract liabilities at the beginning of the period			(5,223,518	)			(1,149,047	)
Cash received prior to completion of performance obligation			435,489				5,223,518
Contract liabilities, as of the end of the period		$	435,489			$	5,223,518

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