SUNation Energy Restructures $5.5 Million of Long-Term Debt, Improving Cash Flows and Enhancing Liquidity

RONKONKOMA, N.Y., April 24, 2025 (GLOBE NEWSWIRE) -- SUNation Energy, Inc. (NASDAQ:SUNE), a leading provider of sustainable solar energy and backup power solutions for households, businesses, and municipalities, today announced that it has amended the terms of a $5,486,000 Long Term Promissory Note (the "Note") associated with the Company's second acquisition dating from November 2022.

Under the new terms of the Long-Term Note, as disclosed in our recent annual report on Form 10-K, the principal amount of the Note, previously due and payable as a one-time payment due in November 2025, together with all accrued and unpaid interest, has been extended and is to now due and payable in 36 monthly installments beginning in June 2025 through May 1, 2028.

"The restructuring of this Note is the latest in a series of restructuring and debt reduction initiatives designed to incrementally improve the Company's capital structure, enhance cash flows, and provide the necessary flexibility to allow us to execute our long-term growth objectives," said James Brennan, Chief Financial Officer. "We appreciate the efforts of our independent board members in helping to reach these new terms with the Note holders, as well as for their confidence in the Company's long term growth prospects."

In addition, under the terms of a newly created Senior Secured Contingent Note Instrument (the "Contingent Note"), payment of the unearned 2024 earnout has been rescheduled. In addition to certain other conditions set forth therein, it will now follow the earnout terms in the Contingent Note covering the 2024 and 2025 fiscal years. If 2025's EBITDA is greater than that of 2024, then the earnout will have been earned, and it will be paid over a period of 24 months starting in 2026.

"One of our focus points has, and will continue to be, ensuring that our commitments are honored and any of our outstanding obligations are satisfied," said Scott Maskin, Chief Executive Officer. "Commencing repayment of this Note is a significant step towards that goal. We are creating an environment where SUNation's value can be based on its business performance, rather than exclusively by its previously costly and challenging capital structure."

Copies of the amended and restated secured Long-Term Note and the Senior Secured Contingent Note Instrument, along with the accompanying Security Agreement, can be found as annexed exhibits to the Company's most recent annual report on Form 10-K.

About SUNation Energy, Inc.

SUNation Energy, Inc. is focused on growing leading local and regional solar, storage, and energy services companies nationwide. Our vision is to power the energy transition through grass-roots growth of solar electricity paired with battery storage. Our portfolio of brands (SUNation, Hawaii Energy Connection, E-Gear) provide homeowners and businesses of all sizes with an end-to-end product offering spanning solar, battery storage, and grid services. SUNation Energy, Inc.'s largest markets include New York, Florida, and Hawaii, and the company operates in three (3) states.

Forward Looking Statements 

This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the Company's current expectations or beliefs and are subject to uncertainty and changes in circumstances. While the Company believes its plans, intentions, and expectations reflected in those forward-looking statements are reasonable, these plans, intentions, or expectations may not be achieved. For information about the factors that could cause such differences, please refer to the Company's filings with the Securities and Exchange Commission, including, without limitation, the statements made under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 and in subsequent filings. The Company does not undertake any obligation to update or revise these forward-looking statements for any reason, except as required by law.

Safe Harbor Statement

Our prospects here at SUNation Energy Inc. are subject to uncertainties and risks. This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934, including, but not limited to, the risk that SUNation may not be able to enter into definitive agreements to commence these solar installations, and that the projects being contemplated will not generate the expected levels of energy or deliver the anticipated financial benefits. The Company intends that such forward-looking statements be subject to the safe harbor provided by the foregoing Sections. These forward-looking statements are based largely on the expectations or forecasts of future events, can be affected by inaccurate assumptions, and are subject to various business risks and known and unknown uncertainties, a number of which are beyond the control of management. Therefore, actual results could differ materially from the forward-looking statements contained in this presentation. The Company cannot predict or determine after the fact what factors would cause actual results to differ materially from those indicated by the forward-looking statements or other statements. The reader should consider statements that include the words "believes", "expects", "anticipates", "intends", "estimates", "plans", "projects", "should", or other expressions that are predictions of or indicate future events or trends, to be uncertain and forward-looking. We caution readers not to place undue reliance upon any such forward-looking statements. The Company does not undertake to publicly update or revise forward-looking statements, whether because of new information, future events or otherwise. Additional information respecting factors that could materially affect the Company and its operations are contained in the Company's filings with the SEC which can be found on the SEC's website at www.sec.gov.

Contacts:

Scott Maskin

Chief Executive Officer

+1 (631) 823-7131

[email protected]

SUNation Energy Investor Relations

+1 (212) 836-9600

[email protected]