Sunlight recognizes receivables primarily related to (a) advances that Sunlight remits to contractors to facilitate the installation of residential solar and home improvement equipment and (b) loans and loan participations. Loans and loan participations primarily include Sunlight’s undivided 5.0% participation in certain Indirect Channel Loans and Indirect Channel Loans purchased from its Bank Partner. The following tables summarize Sunlight’s financing receivables and changes thereto:


	Advances(a)		Loans and Loan Participations(b)		Total

December 31, 2021 (Successor)
Amounts outstanding	$	67,077	$	4,875		$	71,952
Unamortized discount	—		(414)			(414)
Allowance for credit losses	(238)		(148)			(386)
Carrying value	$	66,839	$	4,313		$	71,152
December 31, 2020 (Predecessor)
Amounts outstanding	$	35,401	$	6,351		$	41,752
Unamortized discount	—		(893)			(893)
Allowance for credit losses	(121)		(125)			(246)
Carrying value	$	35,280	$	5,333		$	40,613

a.Represents advance payments made by Sunlight to certain contractors, generally on a short-term basis, in anticipation of a project’s substantial completion, including a $9.0 million advance to a Sunlight contractor not associated with specific installation projects at December 31, 2021.

b.Represents (i) Sunlight’s 5.0% participation interest in a pool of residential solar loans with an aggregate UPB of $4.6 million and $6.0 million at December 31, 2021 and December 31, 2020, respectively, and (ii) Indirect Channel Loans purchased by Sunlight with an aggregate UPB of $0.3 million and $0.4 million at December 31, 2021 and December 31, 2020, respectively. No loans or loan participations were individually evaluated for impairment at December 31, 2021 or December 31, 2020.


	Successor		Predecessor
	For the Period July 10, 2021 to December 31, 2021		For the Period January 1, 2021 to July 9, 2021		For the Year Ended December 31, 2020


Allowance for Credit Losses — Advances
Beginning Balance	$	—	$	121	$	215
Provision for credit losses	358		90		(94)
Realized losses	(120)		—		—
Ending Balance	$	238	$	211	$	121

Allowance for Credit Losses — Loans and Loan Participations
Beginning Balance	$	—	$	125	$	96
Provision for credit losses	859		1,082		1,444
Realized losses	(711)		(1,096)		(1,415)
Ending Balance	$	148	$	111	$	125

Changes in Carrying Value — Loans and Loan Participations
Beginning Balance	$	5,105	$	5,333	$	5,130
Purchases, net(a)	716		1,170		2,839
Proceeds from principal repayments, net	(710)		(832)		(1,316)
Accretion of loan discount	61		123		124
Provision for credit losses	(859)		(1,082)		(1,444)
Ending Balance	$	4,313	$	4,712	$	5,333

a.During the year ended December 31, 2020, Sunlight purchased (i) 5.0% participation interests in 1,007 loans with an aggregate UPB of $1.6 million as well as (ii) 49 Indirect Channel Loans with an aggregate UPB $1.2 million. During the periods July 10, 2021 through December 31,

2021 and January 1, 2021 through July 9, 2021, Sunlight purchased (i) 5.0% participation interests in 0 and 54 loans with an aggregate UPB of $0.0 million and $0.1 million as well as (ii) 20 and 51 Indirect Channel Loans with an aggregate UPB of $0.4 million and $1.1 million, respectively.

Risk Ratings — As further described in Note 2, management evaluates Sunlight’s advances for impairment using risk ratings assigned on a scale of “1” (low risk) through “5” (higher risk). The following table allocates the advance amount outstanding based on Sunlight’s internal risk ratings:


		Total
Risk Tier(a)		Contractors	Amount Outstanding		% of Amount Outstanding
December 31, 2021 (Successor)
1	Low risk	76	$	14,575	21.7	%
2	Low-to-medium risk	77	38,955		58.1
3	Medium risk	17	13,547		20.2
4	Medium-to-high risk	—	—		—
5	Higher risk	—	—		—
		170	$	67,077	100.0	%
December 31, 2020 (Predecessor)
1	Low risk	78	$	18,072	51.0	%
2	Low-to-medium risk	56	16,700		47.2
3	Medium risk	4	604		1.7
4	Medium-to-high risk	—	—		—
5	Higher risk	3	25		0.1
		141	$	35,401	100.0	%

a.At December 31, 2021 and December 31, 2020, the average risk rating of Sunlight’s advances was 2.0 (“low-to-medium risk”) and 1.5 (“low-to-medium risk”), weighted by total advance amounts outstanding.


Payment Delinquency	Amount Outstanding(a)		% of Amount Outstanding
December 31, 2021 (Successor)
Current	$	54,586	94.0	%
Less than 30 days	1,956		3.4
30 days	534		0.9
60 days	361		0.6
90+ days(b)	640		1.1
	$	58,077	100.0	%
December 31, 2020 (Predecessor)
Current	$	29,132	82.3	%
Less than 30 days	3,137		8.9
30 days	1,424		4.0
60 days	672		1.9
90+ days(b)	1,036		2.9
	$	35,401	100.0	%

b.As further discussed in Note 2, Sunlight generally evaluates amounts delinquent for 90 days or more for impairment. Advances to contractors may remain outstanding as a result of operational and various other factors that are unrelated to the contractor’s creditworthiness. Sunlight

assessed advances 90 days or more, along with other factors that included the contractor’s risk tier and historical loss experience, and established loss allowances of $0.2 million and $0.1 million at December 31, 2021 and December 31, 2020, respectively.


	Successor				Predecessor
	December 31, 2021				December 31, 2020
Contractor	Amount Outstanding		% of Total		Amount Outstanding		% of Total
1	$	20,894	31.1	%	$	6,425	18.1	%
2	12,470		18.6		295		0.8
3	9,496		14.2		10,429		29.5
4	2,610		3.9		437		1.2
5	2,571		3.8		36		0.1
6	2,093		3.1		1,812		5.1
7	1,745		2.6		141		0.4
8	855		1.3		712		2.0
9	633		0.9		—		—
10	570		0.8		—		—
Other(a)	13,140		19.7		15,114		42.8
	$	67,077	100.0	%	$	35,401	100.0	%

a.At December 31, 2021 and December 31, 2020, Sunlight recorded advances receivable from 160 and 131 counterparties not individually listed in the table above with average balances of $0.1 million and $0.1 million, respectively. At December 31, 2020, Sunlight recorded advances receivable from individual counterparties of $2.6 million, $0.6 million, $0.6 million, $0.5 million, and $0.5 million that represent the largest advance concentrations included in “Other,” based on the amount outstanding.

Loans and Loan Participations — The following section presents certain characteristics of Sunlight’s investments in loans and loan participations. Unless otherwise indicated, loan participation amounts are shown at Sunlight’s 5% interest in the underlying loan pool.


Payment Delinquency(a)	Loan Participations			Bank Partner Loans			Total
	Loans	UPB		Loans	UPB		Loans	UPB		% of UPB
December 31, 2021 (Successor)
Current	3,780	$	4,442	14	$	268	3,794	$	4,710	96.6	%
Less than 30 days	73	96		1	11		74	107		2.2
30 days	15	23		—	—		15	23		0.5
60 days	10	14		—	—		10	14		0.3
90+ days	7	9		1	12		8	21		0.4
	3,885	$	4,584	16	$	291	3,901	$	4,875	100.0	%
December 31, 2020 (Predecessor)
Current	4,409	$	5,760	16	$	319	4,425	$	6,079	95.7	%
Less than 30 days	116	174		—	—		116	174		2.7
30 days	22	38		1	23		23	61		1.0
60 days	7	11		—	—		7	11		0.2
90+ days	10	14		1	12		11	26		0.4
	4,564	$	5,997	18	$	354	4,582	$	6,351	100.0	%

a.As further described in Note 2, Sunlight places loans delinquent greater than 90 days on nonaccrual status. Such Loans had carrying values of $0.0 million and $0.0 million at December 31, 2021 and December 31, 2020, respectively. Sunlight does not consider the average carrying values and interest income recognized (including interest income recognized using a cash-basis method) material.

Loan Collateral Concentrations — The following table presents the UPB of Balance Sheet Loans, including Sunlight’s relevant participation percentage of the Indirect Channel Loans underlying the participation interests held by Sunlight, based upon the state in which the borrower lived at the time of loan origination:


	Successor				Predecessor
	December 31, 2021				December 31, 2020
State	UPB		% of Total		UPB		% of Total
Texas	$	930	19.1	%	$	1,203	18.9	%
California	867		17.8		1,111		17.5
Florida	423		8.7		555		8.7
New York	325		6.7		403		6.3
New Jersey	302		6.2		376		5.9
Arizona	220		4.5		312		4.9
Pennsylvania	202		4.1		274		4.3
Massachusetts	201		4.1		223		3.5
South Carolina	178		3.7		234		3.7
Missouri	135		2.8		228		3.6
Other(a)	1,092		22.3		1,432		22.7
	$	4,875	100.0	%	$	6,351	100.0	%

a.Sunlight only participates in residential solar loans originated within the United States, including 31 and 31 states not individually listed in the table above, none of which individually amount to more than 2.6% and 2.7% of the UPB at December 31, 2021 and December 31, 2020, respectively.