Safe & Green Development Corporation Reports 63% Revenue Decline and $2.18M Net Loss in Q1 2025

Safe & Green Development Corporation (SG DevCo) reported its financial results for the first quarter of 2025, revealing a significant decline in revenue and ongoing operational challenges. The company generated $18,170 in sales, a decrease of approximately 63% from $49,816 in the same period last year. This drop in revenue is attributed to a lower volume of real estate closings. The company incurred a net loss of $2,179,993, an improvement from the $3,067,671 loss reported in the first quarter of 2024, indicating a reduction in losses despite the decline in revenue.

In terms of operational expenses, SG DevCo reported payroll and related expenses of $451,451, down from $2,016,087 in the prior year, primarily due to a significant stock-based compensation expense recognized in 2024. General and administrative expenses increased to $735,120 from $466,254, driven by higher professional fees associated with being a public company. The company also reported interest expenses of $954,648, up from $565,996, reflecting an increase in the balance of notes payable.

Strategically, SG DevCo is undergoing a transition, focusing on monetizing its real estate holdings and shifting towards the acquisition of Resource Group US Holdings LLC, which specializes in organic waste recycling and soil production. The company has entered into a Membership Interest Purchase Agreement to acquire Resource Group, which is expected to realign its business focus. Additionally, SG DevCo has deconsolidated its joint venture with Sugar Phase I LLC, retaining an 18.5% interest, and is in the process of selling its Lago Vista property for $6.575 million.

As of March 31, 2025, SG DevCo's total assets amounted to $13.1 million, a slight increase from $12.8 million at the end of 2024. However, the company faces substantial liabilities of $12.8 million, leading to a stockholder's equity of only $301,128, down from $853,178 at the end of the previous fiscal year. The company reported cash and cash equivalents of $17,540, a significant decrease from $296,202 at the end of 2024, raising concerns about its liquidity and ability to fund ongoing operations.

Looking ahead, SG DevCo acknowledges the need for additional financing to support its operations and strategic initiatives. The company has indicated that it may pursue further capital raises through equity or debt financing, but there is no assurance that such funding will be available on favorable terms. The ongoing challenges and the need for capital raise raise substantial doubt about the company's ability to continue as a going concern.