SUNation Energy Eliminates Remaining $1.1M Debt Of Subsidiary, Pays $800K Lump Sum To Cut Long-Term Obligation And Boost Cash Flow

SUNation Energy Inc., a leading provider of sustainable solar energy and backup power solutions for residential, commercial, and municipal customers, announced that it has successfully eliminated the remaining portion of approximately $1.1 million of an original $2.5 million long-term debt obligation of its wholly-owned subsidiary, SUNation Solar Systems. This action also substantially reduces the Company’s monthly repayment requirements, significantly improving ongoing cash flow and strengthening its balance sheet.

The debt originated from an April 2021 buyout agreement related to the retirement of a former SUNation Solar Systems shareholder. Before reaching this settlement, the promissory note had a remaining principal of approximately $1.1 million and required monthly payments of roughly $25,000 for nearly five more years, extending to 2031.

To address this obligation and improve financial flexibility, the Company negotiated a one-time lump-sum settlement payment of $800,000. This settlement reduces the total principal by approximately $335,000 and is expected to lower the recurring monthly repayment from $25,000 to around $5,000, representing a forward-looking savings of roughly $20,000 per month.

Scott Maskin, Founder and Chief Executive Officer of SUNation, stated that the Company has always followed a philosophy of “promises made, promises kept.” He emphasized that by eliminating this remaining legacy obligation, SUNation has not only reduced its overall debt burden but also improved cash flow visibility and strengthened its ability to focus on executing its strategic priorities.

This transaction is part of a broader series of balance-sheet and capital-structure initiatives by SUNation’s management team. Recent actions include the final cash distribution to holders of non-transferable Contingent Value Rights in December 2025 and the termination of the Company’s Series A Warrants in June 2025, all aimed at improving financial flexibility and supporting the Company’s long-term growth strategy. Additional details on this transaction will be included in the 8-K filing that SUNation will submit in connection with the matters referenced in this announcement.