Safe & Green(US:SGBX)2023-08-14 13:04Revenue Performance - Total revenue for the six months ended June 30, 2023, was $10,600,990, a decrease of approximately 34.4% from $16,159,569 for the same period in 2022[215] - Total revenue for the three months ended June 30, 2023, was $5,097,055, a decrease of approximately 33% from $7,554,971 in the same period of 2022[222] Cost and Expenses - Cost of revenue for the six months ended June 30, 2023, was $10,636,832, a decrease of approximately 18% from $12,901,174 in 2022[216] - Cost of revenue decreased by approximately 25% to $5,063,425 for the three months ended June 30, 2023, compared to $6,783,011 for the same period in 2022[223] - Payroll and related expenses increased to $5,498,819 for the six months ended June 30, 2023, compared to $2,355,696 in 2022, due to increased headcount and salary expenses[218] - Payroll and related expenses increased to $4,184,429 for the three months ended June 30, 2023, compared to $1,211,509 in the same period of 2022[225] - Other operating expenses rose to $3,336,266 for the six months ended June 30, 2023, compared to $1,811,663 in 2022[219] - Other operating expenses rose to $1,460,059 for the three months ended June 30, 2023, from $888,307 in the same period of 2022[226] - Interest expense increased to $811,343 for the six months ended June 30, 2023, from $121,975 in 2022, due to higher notes payable balances[220] - Interest expense increased significantly to $523,971 for the three months ended June 30, 2023, compared to $73,126 in the same period of 2022[227] Profitability - Gross profit (loss) was $(35,842) for the six months ended June 30, 2023, compared to $3,258,395 for the same period in 2022, resulting in a gross profit margin of 0%[217] - Gross profit margin decreased to 1% for the three months ended June 30, 2023, down from 10% in the same period of 2022[224] - For the six months ended June 30, 2023, the net loss attributable to common stockholders was $(9,074,964), with net cash used in operating activities amounting to $(3,039,177)[247] - For the three months ended June 30, 2023, the net loss attributable to common stockholders was $5,555,524, compared to a loss of $1,415,360 for the same period in 2022[276] - Total net loss for the six months ended June 30, 2023, was $9,074,964, compared to a loss of $2,132,537 for the same period in 2022[276] - Adjusted EBITDA for the three months ended June 30, 2023, was $(2,278,790), significantly worse than $(512,015) for the same period in 2022[276] - Adjusted EBITDA for the six months ended June 30, 2023, was $(4,270,853), compared to $(272,815) for the same period in 2022[276] Cash Flow and Financing - As of June 30, 2023, the company had cash and cash equivalents of $1,601,331, up from $582,776 as of December 31, 2022[231] - The company has negative operating cash flows, raising substantial doubt about its ability to continue as a going concern[232] - On February 7, 2023, the company closed a private placement offering of $1,100,000 in principal amount of convertible debentures[234] - A secured commercial promissory note of $1,750,000 was issued on June 8, 2023, with an interest rate of 23% per annum[237] - The company raised $1,250,000 to date from a Loan Agreement with BCV S&G, with a total loan amount of up to $2,000,000 at an interest rate of 14% per annum[246] - Financing activities provided net cash of $4,726,738 during the six months ended June 30, 2023, compared to a net cash used of $(2,156,000) in the same period of 2022, reflecting a change of $6,882,738[252] - The company may need to secure additional financing sources to fund future growth, as no additional sources are currently secured[248] Project Backlog - The company had a backlog of eleven projects totaling $1,306,849 under contract as of June 30, 2023, with expected revenue realization by December 31, 2023[253] - The backlog decreased by approximately $4,600,000 from December 31, 2022, to June 30, 2023[254] Depreciation and Non-GAAP Measures - Depreciation and amortization for the three months ended June 30, 2023, amounted to $160,455, slightly up from $156,731 in the same period of 2022[276] - The company did not reflect cash outlays for capital expenditures in its EBITDA and Adjusted EBITDA calculations[276] - The company’s non-GAAP measures do not account for cash requirements for asset replacements due to depreciation and amortization[276]