Bright Green (BGXX) - 2024 Q2 - Quarterly Report

PART I. FINANCIAL INFORMATION Item 1. Financial Statements (Unaudited) Unaudited financial statements show no revenue, ongoing net losses, and negative working capital, raising going concern doubts. Condensed Consolidated Balance Sheets Balance sheets show decreased total assets, liabilities, and stockholders' equity by June 30, 2024. | Metric | June 30, 2024 (Unaudited) | December 31, 2023 | | :-------------------------------- | :------------------------ | :------------------ | | Cash | $92,827 | $10,059 | | Prepaid expenses and other assets | $42,051 | $258,230 | | Total current assets | $134,878 | $268,289 | | Other investment held at fair value | $- | $726,343 | | Property, plant, and equipment | $15,837,456 | $16,407,415 | | Intangible assets | $9,010 | $1,000 | | Total assets | $15,981,344 | $17,403,047 | | Accounts payable | $4,768,744 | $4,175,220 | | Accrued liabilities | $37,218 | $411,099 | | Common stock payable for EB-5 program | $800,000 | $- | | Due to others | $- | $1,650,000 | | Related party short-term note payable | $165,000 | $- | | Related party line of credit note | $347,695 | $- | | Total current liabilities | $6,118,657 | $6,236,319 | | Long-term related party line of credit note | $- | $201,783 | | Total liabilities | $6,118,657 | $6,438,102 | | Common stock | $19,017 | $18,476 | | Additional paid-in capital | $59,440,356 | $58,149,938 | | Accumulated deficit | $(49,596,686) | $(47,203,469) | | Total stockholders' equity | $9,862,687 | $10,964,945 | | Total liabilities and stockholders' equity | $15,981,344 | $17,403,047 | Condensed Consolidated Statements of Operations and Comprehensive Loss Net loss significantly decreased for the six months ended June 30, 2024, due to lower operating expenses and a debt extinguishment gain. | Metric | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :----------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue | $- | $- | $- | $- | | Total operating expenses | $1,523,887 | $2,986,506 | $3,401,754 | $5,599,129 | | Loss from operations | $(1,523,887) | $(2,986,506) | $(3,401,754) | $(5,599,129) | | Other income (expense) | $80,120 | $(724) | $1,008,537 | $(1,366) | | Loss before income taxes | $(1,443,767) | $(2,987,230) | $(2,393,217) | $(5,600,495) | | Net loss and comprehensive loss | $(1,443,767) | $(2,992,171) | $(2,393,217) | $(5,605,436) | | Net loss per common share basic and diluted | $(0.01) | $(0.02) | $(0.01) | $(0.03) | - The company recognized a significant gain on extinguishment of debt of $1,008,589 for the six months ended June 30, 2024, compared to no such gain in the prior year[11] Condensed Consolidated Statements of Changes in Stockholders' Equity Stockholders' equity decreased from $10.96 million to $9.86 million due to net loss, partially offset by stock-based compensation and common stock issuances. | Metric | Balance at December 31, 2023 | Balance at June 30, 2024 | | :------------------------------------------------ | :--------------------------- | :----------------------- | | Common Stock Shares | 184,758,818 | 190,166,318 | | Common Stock Amount | $18,476 | $19,017 | | Additional paid-in capital | $58,149,938 | $59,440,356 | | Accumulated deficit | $(47,203,469) | $(49,596,686) | | Total stockholders' equity | $10,964,945 | $9,862,687 | Changes for Six Months Ended June 30, 2024: * Stock-based compensation: $323,219 * Common stock issued in lieu of unpaid cash remuneration and bonus compensation: 2,420,000 shares, valued at $425,920 * Common stock issued for services: 2,987,500 shares, valued at $541,820 * Net loss: $(2,393,217) Condensed Consolidated Statements of Cash Flows Operating and investing cash outflows decreased, while financing cash inflows decreased, resulting in an overall cash increase of $82,768. | Cash Flow Activity | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net cash used in operating activities | $(850,393) | $(2,078,750) | | Net cash used in investing activities | $(151,192) | $(2,223,129) | | Net cash provided by financing activities | $1,084,353 | $4,394,750 | | Net increase in cash | $82,768 | $92,871 | | Cash, beginning of period | $10,059 | $414,574 | | Cash, end of period | $92,827 | $507,445 | - Net cash used in operating activities decreased by $1,228,357 for the six months ended June 30, 2024, compared to the same period in 2023[14] - Net cash used in investing activities decreased by $2,071,937 for the six months ended June 30, 2024, compared to the same period in 2023[14] Notes to the Condensed Consolidated Financial Statements Notes detail business, going concern, accounting policies, assets, related party transactions, equity, compensation, and contingencies. 1. Description of Business and Organization The company, incorporated in 2019, is a federally authorized cannabis entity expanding into other plant-based medicines, with no revenue generated as of June 30, 2024. - Bright Green Corporation was incorporated on April 16, 2019, and its common stock commenced trading on Nasdaq under the symbol 'BGXX' on May 17, 2022[15] - The company holds DEA Manufacturing Registration and DEA Importer Registration, allowing it to produce, export, and sell federally legal cannabis for research and pharmaceutical purposes[102][103] - The company is expanding its focus beyond cannabis to include other plant-based medicines like psilocybin, peyote cactus, and opium poppy, having received New Mexico Board of Pharmacy approval for additional Schedule I and II controlled substances in February 2024[105] - As of June 30, 2024, the Company is a start-up and has not generated any revenue[17] 2. Going Concern and Basis of Presentation The company's recurring losses and negative working capital raise substantial doubt about its ability to continue as a going concern. - The company incurred a net loss of $2,393,217 for the six months