Safe & Green(US:SGBX)2025-06-13 15:49Company Operations - Safe & Green Holdings Corp. operates in four segments: construction, medical, oil and gas, and environmental[305]. - The environmental segment focuses on biomedical waste removal using patented technology for safe disposal[305]. - The oil and gas segment includes the acquisition of Olenox Corp., which specializes in revitalizing underdeveloped energy assets[307]. - The company aims to establish a national presence in the medical segment through Safe & Green Medical Corporation[306]. - The company has increased control over manufacturing processes since acquiring Echo DCL, LLC in September 2020[306]. Financial Performance - Total revenue for the three months ended March 31, 2025, was $566,354, a decrease of approximately 41% from $968,115 for the same period in 2024[340]. - Cost of revenue increased to $890,109 for the three months ended March 31, 2025, up approximately 38% from $644,983 in the prior year[342]. - Gross profit (loss) margin percentage decreased to (57)% for the three months ended March 31, 2025, compared to 33% for the same period in 2024[343]. - Total operating loss for the three months ended March 31, 2025, was $1,831,982, slightly improved from a loss of $1,853,715 in the same period in 2024[340]. - Total loss before income tax for the three months ended March 31, 2025, was $2,746,668, compared to a loss of $5,482,560 in the prior year[340]. - Net loss attributable to common stockholders for the three months ended March 31, 2025, was $2,746,668, compared to $4,436,031 in the same period in 2024[340]. - For the three months ended March 31, 2025, the net loss attributable to common stockholders was $2,746,668, with net cash used in operating activities amounting to $1,308,920, a decrease of approximately $3,124,551 compared to the same period in 2024[353][355]. - The company reported a change in fair value of equity-based investments of $311,560 for the three months ended March 31, 2025, significantly lower than $3,112,803 for the same period in 2024[346]. - The accumulated deficit as of March 31, 2025, was $101,278,751, an increase from $98,532,083 as of December 31, 2024[353]. - EBITDA for Q1 2025 was $(2,036,815), compared to $(3,652,454) in Q1 2024, indicating a reduction in losses[376]. - Adjusted EBITDA for Q1 2025 was $(1,618,957), an improvement from $(3,510,854) in Q1 2024[376]. Expenses and Cash Flow - Payroll and related expenses decreased to $555,738 for the three months ended March 31, 2025, from $1,251,982 in the same period in 2024[344]. - Other operating expenses increased to $952,489 for the three months ended March 31, 2025, compared to $601,733 for the same period in 2024[345]. - Interest expense increased to $603,126 for the three months ended March 31, 2025, compared to $716,671 for the same period in 2024, due to higher notes payable balances[346]. - The amortization expense for intangible assets was $15,058 for the three months ended March 31, 2025, compared to $3,417 for the same period in 2024[370]. - Financing activities provided net cash of $1,346,219 for the three months ended March 31, 2025, compared to $5,388,824 in the same period of 2024[357]. - The company has negative operating cash flows, raising substantial doubt about its ability to continue as a going concern for one year after the issuance of the financial statements[351]. Risks and Future Outlook - The company is subject to various risks including competition, economic conditions, and regulatory changes that could impact future performance[304]. - The company intends to secure additional financing sources to fund future growth, with expectations of becoming cash flow positive in the second half of 2025[354]. - Inflation has impacted the company's estimated costs for construction projects, affecting revenue and income from continuing operations[348]. - The company plans to apply for trading on the OTCQB market to address the risk of delisting from Nasdaq[333]. Notes and Other Information - A promissory note was issued for $143,750 with an original issue discount of $18,750, requiring monthly payments of $18,368 starting February 28, 2025[310]. - The company executed a promissory note for $360,000 with a purchase price of $300,000, representing an original issue discount of $60,000[311]. - A new promissory note was issued for up to $1,875,000 with a 25% original issue discount, and a conversion price of $0.50 per share[318]. - The Company executed and issued a Promissory Note in favor of GS Capital Partners, LLC, in the aggregate principal amount of $360,000[320]. - Common stock deemed dividend was $0 in Q1 2025, compared to $1,162,436 in Q1 2024[376]. - The company did not report any gain on deconsolidation for Q1 2025, while Q1 2024 included a loss of $4,637,013[376]. - Stock compensation expense for Q1 2025 was $106,298, down from $179,029 in Q1 2024[376]. - The company did not incur any litigation expenses in Q1 2025, while $143,745 was recorded in Q1 2024[376]. - There were no quantitative and qualitative disclosures about market risk required for this reporting period[377].