Olenox Industries Reports 50% Revenue Decline and Increased Net Loss in Q1 2026

Olenox Industries Inc., formerly known as Safe & Green Holdings Corp., reported a significant decline in financial performance for the first quarter of 2026, with total revenues of $285,313, down 50% from $566,354 in the same period last year. The decrease was primarily attributed to reduced revenue from construction services, although the company noted an increase in revenue from its oil and gas and Software-as-a-Service (SaaS) operations. The cost of revenue also decreased to $486,146 from $890,109, reflecting lower construction costs and the absence of losses recognized on certain projects in the prior year.

The company recorded a gross loss of $200,833 for the quarter, an improvement from a gross loss of $323,755 in the previous year. However, the gross loss margin percentage increased to 70%, compared to 57% in the prior year, largely due to the addition of oil and gas production revenue. Operating expenses surged to $2,682,281, up from $1,508,227, driven by higher payroll and related expenses, as well as increased general and administrative costs associated with expanded operations and acquisitions.

Olenox reported a net loss attributable to common stockholders of $3,061,691 for the quarter, compared to a net loss of $2,746,668 in the same period last year. The company recognized a gain on debt extinguishment of $1,197,449, which was partially offset by losses on other debt settlements. Interest expense decreased to $365,757 from $603,126, reflecting lower average outstanding debt balances.

In terms of operational developments, Olenox's total assets decreased to $35,400,776 as of March 31, 2026, down from $36,035,707 at the end of 2025. The company’s stockholders’ equity increased to $8,187,156, compared to $7,589,746 at the end of the previous year. The company has been actively pursuing strategic initiatives, including the acquisition of CS Digital Ventures, LLC, and Psylinks Neurotech Corp., aimed at enhancing its digital infrastructure and energy-related capabilities.

Looking ahead, Olenox faces challenges related to its liquidity and ability to continue as a going concern, as it has incurred recurring operating losses and negative cash flows. The company plans to address these issues by increasing revenues, containing costs, and pursuing additional financing. However, there is no assurance that it will be successful in meeting its capital requirements, which may necessitate modifications to its business plan.