Safe & Green Holdings Reports 41% Revenue Decline and Operating Loss in Q1 2025

Safe & Green Holdings Corp. reported a total revenue of $566,354 for the three months ended March 31, 2025, a decrease of approximately 41% from $968,115 in the same period of 2024. The decline was primarily attributed to reduced construction services, reflecting fewer jobs in progress. The company's cost of revenue increased to $890,109, up from $644,983, leading to a gross loss of $323,755 compared to a gross profit of $323,132 in the prior year. This shift resulted in a gross margin percentage of -57% for the current quarter, down from 33% in the previous year.

Operating expenses for the first quarter of 2025 totaled $1,508,227, a decrease from $1,853,715 in 2024, largely due to reduced payroll and related expenses, which fell to $555,738 from $1,251,982. However, general and administrative expenses rose significantly to $945,573 from $478,158. The company reported an operating loss of $1,831,982, slightly improved from a loss of $1,530,583 in the prior year. The net loss attributable to common stockholders was $2,746,668, compared to $4,436,031 in the same quarter of 2024.

Strategically, Safe & Green Holdings completed a merger with New Asia Holdings, Inc. in February 2025, which involved issuing 4 million shares of Series A non-voting convertible preferred stock. This merger is expected to enhance the company's operational capabilities in the oil and gas sector, following the acquisition of Olenox Corp., which specializes in revitalizing underdeveloped energy assets. The company also formed Safe and Green Medical Corporation to expand its medical segment, focusing on providing modular healthcare solutions.

As of March 31, 2025, the company had cash and cash equivalents of $230,509 and a backlog of $801,944, which it anticipates converting to revenue within the year. However, the company faces significant financial challenges, including negative working capital of $21,495,360 and ongoing losses, raising substantial doubt about its ability to continue as a going concern. The management plans to address these challenges through cost containment, strategic alliances, and potential capital raises, although there is no assurance of success.

Looking ahead, Safe & Green Holdings aims to achieve cash flow positivity by the second half of 2025, contingent on securing additional financing and increasing sales. The company is also addressing compliance issues with Nasdaq, having received notifications regarding potential delisting due to public interest concerns and failure to meet minimum bid price requirements. The outcome of these compliance efforts and the company's ability to stabilize its financial position will be critical in determining its future operations and market presence.