SUNation Energy, Inc. 8-K

What Happened

• SUNation Energy, Inc. (SUNE) filed an 8-K on Feb 4, 2026 disclosing that on Jan 30, 2026 it paid a one-time lump-sum settlement of $800,000 to eliminate a long-term promissory note acquired in its Nov 2022 acquisition of SUNation Solar Systems. The note originally was $2.5 million (issued Apr 2021) and had an outstanding principal of approximately $1.1 million before the settlement.
• To fund the settlement, the company drew on its $1.0 million secured revolving line of credit (the “Revolver”) established in Apr 2025 with MBB Energy, LLC, an entity controlled by CEO Scott Maskin. The Revolver carries a fixed 8% annual interest rate, monthly payments, and no prepayment penalty.

Key Details

• Settlement payment: $800,000 made Jan 30, 2026.
• Remaining principal reduction: roughly $335,000 eliminated (from ~$1.1M down by $335K).
• Monthly cash obligation change: prior note required ≈ $25,000/month; under the Revolver obligation is expected to be ≈ $5,000/month — about $20,000/month savings going forward.
• Revolver terms: $1.0M secured facility, 8% fixed annual interest, payable monthly; prior to this draw no amounts had been borrowed.

Why It Matters

• The transaction reduces SUNation’s aggregate principal indebtedness and materially lowers its recurring monthly cash outflow by about $20,000, which can improve near-term cash flow and financial flexibility.
• Investors should note the financing came from a related party (MBB Energy, LLC, controlled by the CEO), and the new obligation carries an 8% interest cost that will replace part of the former note’s payments. The company also disclosed the related press release (Feb 3, 2026) as Exhibit 99.1.