Safe & Green Development Reports Revenue Surge to $1.4M but Incurred $5.72M Net Loss in Latest Quarter

Safe & Green Development Corporation reported significant financial changes in its latest 10-Q filing for the quarter ending June 30, 2025. The company generated revenues of $1.4 million for the three months ended June 30, 2025, a substantial increase from $42,162 in the same period last year. For the six months, revenues reached $1.42 million, compared to $91,978 in the prior year. This growth is attributed to the acquisition of Resource Group US Holdings LLC, which has shifted the company’s operational focus towards engineered soils and organic recycling.

Despite the revenue increase, Safe & Green Development recorded a net loss of $5.72 million for the quarter, compared to a loss of $1.97 million in the same period last year. The six-month net loss also widened to $7.9 million from $5.04 million. The increase in losses is primarily due to a $3.03 million bad debt expense related to the uncertainty of collectability of a note receivable, alongside rising general and administrative expenses, which surged to $1.61 million from $216,829 year-over-year.

Operationally, the company has made strategic moves, including the completion of the Resource Group acquisition in June 2025, which is expected to enhance its revenue profile and diversify operations. The company is also exploring a potential cryptocurrency treasury reserve strategy, which could lead to further strategic shifts, including the possible divestiture of Resource Group. As of June 30, 2025, Safe & Green Development had total assets of $39.07 million, a significant increase from $12.75 million at the end of 2024, largely due to the acquisition.

The company’s liabilities have also increased, with total liabilities reaching $34.69 million, up from $11.9 million at the end of 2024. This rise is attributed to increased short-term notes payable and due to affiliates. The company’s cash position improved to $403,086 from $227,766 at the end of the previous fiscal year, reflecting a net cash increase from operating activities during the first half of 2025.

Looking ahead, Safe & Green Development acknowledges the need for additional financing to support its operations and growth initiatives. The company has expressed concerns about its ability to continue as a going concern, given its history of net losses and reliance on external funding sources. The management is actively seeking to monetize its real estate holdings and secure financing to sustain operations, while also evaluating the most efficient path to manage its property portfolio alongside the growth of Resource Group.