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Segment Information | 6 Months Ended
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Jun. 30, 2025
Segment Information [Abstract] |
Segment Information | NOTE 11 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 segment provides solar power, battery storage, and related services to customers primarily in New York and Florida. 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 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. 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 Company’s plans for integrating SUNation and HEC. As a result, management determined HEC and SUNation to be distinct reportable segments. Prior period amounts have been recast for comparative purposes to reflect this change, which had no impact on the Company’s consolidated financial position, results of operations, and cash flows. The accounting policies of the segments are the same as those applied in the consolidated financial statements as disclosed in Note 2, Summary of Significant Accounting Policies. 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 |  | 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 loss |  | 11,393 |  |  | (499,075) |  |  | (1,675,905) |  |  | (2,163,587)
Other income (expenses): |  |  |  |  |  |  |  |  |  |  |
Investment and other income |  | 10,722 |  |  | 2,957 |  |  | 13,982 |  |  | 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 |  | (15,098) |  |  | — |  |  | (147,032) |  |  | (162,130)
Loss on debt extinguishment |  | — |  |  | — |  |  | — |  |  | —
Other (expense) income, net |  | (4,376) |  |  | 2,957 |  |  | (7,428,173) |  |  | (7,429,592)
Net loss before income taxes | $ | 7,017 |  | $ | (496,118) |  | $ | (9,104,078) |  | $ | (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 |  | HEC |  | Other |  | Total
Three Months Ended June 30, 2024 |  |  |  |  |  |  |  |  |  |  |
Sales | $ | 9,731,647 |  | $ | 3,817,773 |  | $ | — |  | $ | 13,549,420
Cost of sales |  | 6,018,778 |  |  | 2,738,288 |  |  | — |  |  | 8,757,066
Gross profit |  | 3,712,869 |  |  | 1,079,485 |  |  | — |  |  | 4,792,354
Operating expenses: |  |  |  |  |  |  |  |  |  |  |
Selling, general and administrative expenses |  | 3,970,704 |  |  | 991,480 |  |  | 1,596,739 |  |  | 6,558,923
Amortization expense |  | 203,125 |  |  | 506,250 |  |  | — |  |  | 709,375
Fair value remeasurement of SUNation earnout consideration |  | — |  |  | — |  |  | (450,000) |  |  | (450,000)
Total operating expenses |  | 4,173,829 |  |  | 1,497,730 |  |  | 1,146,739 |  |  | 6,818,298
Operating loss |  | (460,960) |  |  | (418,245) |  |  | (1,146,739) |  |  | (2,025,944)
Other income (expenses): |  |  |  |  |  |  |  |  |  |  |
Investment and other income |  | 5,115 |  |  | 3,644 |  |  | 18,566 |  |  | 27,325
Fair value remeasurement of warrant liability |  | — |  |  | — |  |  | (3,267,571) |  |  | (3,267,571)
Fair value remeasurement of embedded derivative liability |  | — |  |  | — |  |  | (1,055,600) |  |  | (1,055,600)
Fair value remeasurement of contingent value rights |  | — |  |  | — |  |  | 116,775 |  |  | 116,775
Interest expense |  | (15,388) |  |  | — |  |  | (720,245) |  |  | (735,633)
Other (expense) income, net |  | (10,273) |  |  | 3,644 |  |  | (4,908,075) |  |  | (4,914,704)
Net (loss) income before income taxes | $ | (471,233) |  | $ | (414,601) |  | $ | (6,054,814) |  | $ | (6,940,648)
Depreciation and amortization | $ | 255,559 |  | $ | 530,443 |  | $ | 770 |  | $ | 786,772
Capital expenditures | $ | 11,985 |  | $ | — |  | $ | — |  | $ | 11,985
Assets | $ | 27,468,300 |  | $ | 22,786,653 |  | $ | 2,598,738 |  | $ | 52,853,691
|  |  |  |  |  | Corporate and |  |
| SUNation |  | 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
Operating (loss) income |  | (366,650) |  |  | (1,073,256) |  |  | (2,891,029) |  |  | (4,330,935)
Other income (expenses): |  |  |  |  |  |  |  |  |  |  |
Investment and other income |  | 18,247 |  |  | 10,233 |  |  | 47,346 |  |  | 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 |  | (30,956) |  |  | — |  |  | (702,414) |  |  | (733,370)
Loss on debt extinguishment |  | — |  |  | — |  |  | (343,471) |  |  | (343,471)
Other expense, net |  | (12,709) |  |  | 10,233 |  |  | (8,741,585) |  |  | (8,744,061)
Net loss before income taxes | $ | (379,359) |  | $ | (1,063,023) |  | $ | (11,632,614) |  | $ | (13,074,996)
Depreciation and amortization | $ | 502,098 |  | $ | 750,646 |  | $ | — |  | $ | 1,252,744
Capital expenditures | $ | — |  | $ | 8,817 |  | $ | — |  | $ | 8,817
|  |  |  |  |  | Corporate and |  |
| SUNation |  | HEC |  | Other |  | Total
Six Months Ended June 30, 2024 |  |  |  |  |  |  |  |  |  |  |
Sales | $ | 19,484,617 |  | $ | 7,284,000 |  | $ | — |  | $ | 26,768,617
Cost of sales |  | 11,820,538 |  |  | 5,350,277 |  |  | — |  |  | 17,170,815
Gross profit |  | 7,664,079 |  |  | 1,933,723 |  |  | — |  |  | 9,597,802
Operating expenses: |  |  |  |  |  |  |  |  |  |  |
Selling, general and administrative expenses |  | 7,843,159 |  |  | 1,993,532 |  |  | 3,351,259 |  |  | 13,187,950
Amortization expense |  | 406,250 |  |  | 1,012,500 |  |  | — |  |  | 1,418,750
Fair value remeasurement of SUNation earnout consideration |  | — |  |  | — |  |  | (800,000) |  |  | (800,000)
Total operating expenses |  | 8,249,409 |  |  | 3,006,032 |  |  | 2,551,259 |  |  | 13,806,700
Operating (loss) income |  | (585,330) |  |  | (1,072,309) |  |  | (2,551,259) |  |  | (4,208,898)
Other income (expenses): |  |  |  |  |  |  |  |  |  |  |
Investment and other income |  | 9,772 |  |  | 5,451 |  |  | 57,943 |  |  | 73,166
(Loss) gain on sale of assets |  | — |  |  | 6,118 |  |  | — |  |  | 6,118
Fair value remeasurement of warrant liability |  | — |  |  | — |  |  | 461,022 |  |  | 461,022
Fair value remeasurement of embedded derivative liability |  | — |  |  | — |  |  | (1,055,600) |  |  | (1,055,600)
Fair value remeasurement of contingent value rights |  | — |  |  | — |  |  | 492,860 |  |  | 492,860
Interest expense |  | (37,650) |  |  | — |  |  | (1,462,853) |  |  | (1,500,503)
Other expense, net |  | (27,878) |  |  | 11,569 |  |  | (1,506,628) |  |  | (1,522,937)
Net loss before income taxes | $ | (613,208) |  | $ | (1,060,740) |  | $ | (4,057,887) |  | $ | (5,731,835)
Depreciation and amortization | $ | 526,162 |  | $ | 1,060,864 |  | $ | 1,538 |  | $ | 1,588,564
Capital expenditures | $ | 11,985 |  | $ | 5,594 |  | $ | — |  | $ | 17,579

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