2024 Q2 Form 10-K Financial Statement

#000121390024040541 Filed on May 07, 2024

View on sec.gov

Income Statement

Concept 2024 Q2 2023 Q4 2023
Revenue $1.253M $1.957M $16.52M
YoY Change -75.41% -52.32% -32.27%
Cost Of Revenue $1.094M $3.941M $19.08M
YoY Change -78.39% -0.05% -9.75%
Gross Profit $159.2K -$1.984M -$2.556M
YoY Change 373.29% -1333.13% -178.56%
Gross Profit Margin 12.7% -101.42% -15.47%
Selling, General & Admin $1.223M $4.955M $9.062M
YoY Change -16.22% 24.84% -13.23%
% of Gross Profit 768.53%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $42.30K $140.1K $370.5K
YoY Change -54.26% 4.1% -9.7%
% of Gross Profit 26.57%
Operating Expenses $2.953M $4.966M $22.22M
YoY Change -47.68% 24.77% 111.9%
Operating Profit -$2.794M -$6.950M -$24.77M
YoY Change -50.21% 82.0% 242.64%
Interest Expense -$1.889M -$1.081M $2.609M
YoY Change -460.58% 791.49% -1094.09%
% of Operating Profit
Other Income/Expense, Net -$1.754M -$67.63K -$1.985M
YoY Change -3269.77% 12.83% -1510.7%
Pretax Income -$4.548M -$14.07M -$26.76M
YoY Change -18.14% 249.67% 277.44%
Income Tax $0.00
% Of Pretax Income
Net Earnings -$4.548M -$13.60M -$26.28M
YoY Change -18.14% 264.31% 215.93%
Net Earnings / Revenue -362.83% -695.01% -159.07%
Basic Earnings Per Share -$2.73 -$34.03
Diluted Earnings Per Share -$2.73 -$15.55 -$34.03
COMMON SHARES
Basic Shares Outstanding 1.218M shares 16.48M shares 772.3K shares
Diluted Shares Outstanding 1.412M shares 772.3K shares

Balance Sheet

Concept 2024 Q2 2023 Q4 2023
SHORT-TERM ASSETS
Cash & Short-Term Investments $1.017M $17.45K $17.45K
YoY Change -36.5% -97.01% -97.01%
Cash & Equivalents $1.017M $17.45K $17.45K
Short-Term Investments
Other Short-Term Assets $4.080M $1.902M $4.973M
YoY Change 82.75% -72.07% -3.27%
Inventory $223.4K $156.5K $156.5K
Prepaid Expenses
Receivables $364.4K $182.8K $193.5K
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $7.398M $5.341M $5.341M
YoY Change -20.69% -28.85% -28.85%
LONG-TERM ASSETS
Property, Plant & Equipment $5.506M $5.582M $7.570M
YoY Change -21.24% -0.47% -24.53%
Goodwill $1.811M
YoY Change 38.3%
Intangibles $557.3K $23.62K
YoY Change -72.09% -98.82%
Long-Term Investments $3.643M $3.643M $3.643M
YoY Change -15.78% -15.29% -15.29%
Other Assets $30.59K $30.59K
YoY Change -57.14% -57.14%
Total Long-Term Assets $13.53M $11.87M $11.87M
YoY Change -27.01% -37.68% -37.68%
TOTAL ASSETS
Total Short-Term Assets $7.398M $5.341M $5.341M
Total Long-Term Assets $13.53M $11.87M $11.87M
Total Assets $20.93M $17.21M $17.21M
YoY Change -24.89% -35.19% -35.19%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $10.01M $7.490M $7.490M
YoY Change 42.4% 138.0% 86.81%
Accrued Expenses $2.511M $2.511M
YoY Change 499.82% 499.82%
Deferred Revenue $1.737M $1.367M
YoY Change 929.31% 212.62%
Short-Term Debt $0.00 $8.472M $8.472M
YoY Change -100.0% 219.91% 219.91%
Long-Term Debt Due $10.10M $8.472M $709.3K
YoY Change 1213.41% 950.11% -12.08%
Total Short-Term Liabilities $22.31M $20.55M $20.55M
YoY Change 47.67% 146.8% 146.8%
LONG-TERM LIABILITIES
Long-Term Debt $2.462M $2.592M $2.592M
YoY Change -18.85% 55.11% 55.11%
Other Long-Term Liabilities $945.0K $405.0K $405.0K
YoY Change 138.03% -80.89% -80.89%
Total Long-Term Liabilities $3.407M $2.997M $2.997M
YoY Change -0.7% -20.93% -20.93%
TOTAL LIABILITIES
Total Short-Term Liabilities $22.31M $20.55M $20.55M
Total Long-Term Liabilities $3.407M $2.997M $2.997M
Total Liabilities $25.72M $23.55M $24.67M
YoY Change 38.72% 94.34% 110.26%
SHAREHOLDERS EQUITY
Retained Earnings -$84.46M -$75.93M
YoY Change 67.24% 83.28%
Common Stock $17.48K $8.814K
YoY Change -89.09% -93.01%
Preferred Stock
YoY Change
Treasury Stock (at cost) $92.40K $92.40K
YoY Change 0.0% 85.98%
Treasury Stock Shares
Shareholders Equity -$9.134M -$7.459M -$7.459M
YoY Change
Total Liabilities & Shareholders Equity $20.93M $17.21M $17.21M
YoY Change -24.89% -35.19% -35.19%

Cashflow Statement

Concept 2024 Q2 2023 Q4 2023
OPERATING ACTIVITIES
Net Income -$4.548M -$13.60M -$26.28M
YoY Change -18.14% 264.31% 215.93%
Depreciation, Depletion And Amortization $42.30K $140.1K $370.5K
YoY Change -54.26% 4.1% -9.7%
Cash From Operating Activities -$3.694M -$2.470M -$7.142M
YoY Change 122.49% 3089.01% 26.84%
INVESTING ACTIVITIES
Capital Expenditures -$65.08K $172.2K $607.4K
YoY Change -312.26% -79.29% -77.99%
Acquisitions
YoY Change
Other Investing Activities -$20.00 $0.00 -$42.66K
YoY Change -100.0% -95.84%
Cash From Investing Activities $65.06K -$172.2K -$864.8K
YoY Change -312.2% -43.34% -77.56%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net -$352.0K
YoY Change -808.57%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 3.906M 1.947M $7.441M
YoY Change 112.3% -268.68% -351.59%
NET CHANGE
Cash From Operating Activities -3.694M -2.470M -$7.142M
Cash From Investing Activities 65.06K -172.2K -$864.8K
Cash From Financing Activities 3.906M 1.947M $7.441M
Net Change In Cash 277.0K -695.5K -$565.3K
YoY Change 86.15% -54.7% -95.46%
FREE CASH FLOW
Cash From Operating Activities -$3.694M -$2.470M -$7.142M
Capital Expenditures -$65.08K $172.2K $607.4K
Free Cash Flow -$3.629M -$2.642M -$7.749M
YoY Change 114.61% 190.63% -7.65%

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CY2022Q4 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
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3210631 usd
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CY2023 us-gaap Minority Interest Decrease From Distributions To Noncontrolling Interest Holders
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CY2023 sgbx Stock Issued During Period Value Warrants Exercised
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CY2023 sgbx Stock Issued During Period Value Conversion Of Accrued Interest
StockIssuedDuringPeriodValueConversionOfAccruedInterest
45000 usd
CY2023 sgbx Stock Issued During Period Value Conversion Of Short Term Notes Payable
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730000 usd
CY2023Q4 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
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CY2023 us-gaap Profit Loss
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CY2022 us-gaap Profit Loss
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CY2023 us-gaap Depreciation
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370525 usd
CY2022 us-gaap Depreciation
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410314 usd
CY2023 us-gaap Provision For Other Losses
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1557534 usd
CY2022 us-gaap Provision For Other Losses
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CY2023 us-gaap Amortization Of Intangible Assets
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187640 usd
CY2022 us-gaap Amortization Of Intangible Assets
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164092 usd
CY2023 us-gaap Other Asset Impairment Charges
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4418911 usd
CY2022 us-gaap Other Asset Impairment Charges
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CY2023 us-gaap Other Depreciation And Amortization
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40785 usd
CY2022 us-gaap Other Depreciation And Amortization
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40785 usd
CY2023 us-gaap Amortization Of Financing Costs
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CY2022 us-gaap Amortization Of Financing Costs
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23726 usd
CY2023 us-gaap Operating Lease Right Of Use Asset Amortization Expense
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CY2022 us-gaap Operating Lease Right Of Use Asset Amortization Expense
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CY2023 sgbx Accounts Receivable Write Offs
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CY2022 sgbx Accounts Receivable Write Offs
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CY2023 us-gaap Provision For Doubtful Accounts
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491388 usd
CY2022 us-gaap Provision For Doubtful Accounts
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10526 usd
CY2023 us-gaap Gain Loss On Investments
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CY2022 us-gaap Gain Loss On Investments
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37397 usd
CY2023 sgbx Issuance Of Subsidiary Stock
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195000 usd
CY2022 sgbx Issuance Of Subsidiary Stock
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CY2023 us-gaap Issuance Of Stock And Warrants For Services Or Claims
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CY2022 us-gaap Issuance Of Stock And Warrants For Services Or Claims
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CY2023 us-gaap Share Based Compensation
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3210631 usd
CY2022 us-gaap Share Based Compensation
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CY2022 us-gaap Gain Loss On Disposition Of Assets1
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CY2022 us-gaap Increase Decrease In Accounts Receivable
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CY2023 us-gaap Increase Decrease In Contract With Customer Asset
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CY2022 us-gaap Increase Decrease In Contract With Customer Asset
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CY2022 us-gaap Increase Decrease In Inventories
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CY2022 us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
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CY2022 us-gaap Increase Decrease In Intangible Assets Current
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CY2023 us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
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CY2022 us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
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CY2023 us-gaap Increase Decrease In Contract With Customer Liability
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CY2022 us-gaap Increase Decrease In Contract With Customer Liability
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CY2022 us-gaap Increase Decrease In Due To Related Parties Current
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CY2022 us-gaap Increase Decrease In Other Current Liabilities
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CY2023 us-gaap Increase Decrease In Other Noncurrent Liabilities
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CY2022 us-gaap Increase Decrease In Other Noncurrent Liabilities
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CY2022 us-gaap Net Cash Provided By Used In Operating Activities
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CY2022 us-gaap Payments To Acquire Property Plant And Equipment
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CY2023 us-gaap Payments To Acquire Intangible Assets
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CY2022 us-gaap Payments To Acquire Intangible Assets
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760 usd
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CY2022 us-gaap Payments To Acquire Notes Receivable
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100000 usd
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CY2022 sgbx Payments For Project Development Costs
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CY2023 us-gaap Payments To Acquire Marketable Securities
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CY2022 us-gaap Payments To Acquire Marketable Securities
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500000 usd
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42662 usd
CY2022 us-gaap Payments To Acquire Interest In Joint Venture
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CY2022 us-gaap Net Cash Provided By Used In Investing Activities
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10129078 usd
CY2022 us-gaap Proceeds From Short Term Debt
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500000 usd
CY2023 us-gaap Repayments Of Notes Payable
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3704129 usd
CY2022 us-gaap Repayments Of Notes Payable
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CY2023 us-gaap Proceeds From Issuance Of Secured Debt
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CY2022 us-gaap Proceeds From Issuance Of Secured Debt
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CY2023 us-gaap Proceeds From Issuance Of Common Stock
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394735 usd
CY2022 us-gaap Proceeds From Issuance Of Common Stock
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CY2023 sgbx Finance Lease Payments
FinanceLeasePayments
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CY2022 sgbx Finance Lease Payments
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431865 usd
CY2023 us-gaap Payments To Minority Shareholders
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46417 usd
CY2022 us-gaap Payments To Minority Shareholders
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2976148 usd
CY2023 us-gaap Payments For Repurchase Of Common Stock
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42716 usd
CY2022 us-gaap Payments For Repurchase Of Common Stock
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49680 usd
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CY2022 us-gaap Net Cash Provided By Used In Financing Activities
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CY2023 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
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CY2022 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
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CY2022Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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582776 usd
CY2021Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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CY2023Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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17448 usd
CY2022Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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582776 usd
CY2023 us-gaap Interest Paid Net
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CY2022 us-gaap Interest Paid Net
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271744 usd
CY2023 us-gaap Capital Lease Obligations Incurred
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CY2022 us-gaap Capital Lease Obligations Incurred
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3902175 usd
CY2023 us-gaap Debt Conversion Converted Instrument Amount1
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730000 usd
CY2022 us-gaap Debt Conversion Converted Instrument Amount1
DebtConversionConvertedInstrumentAmount1
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CY2023 sgbx Common Stock Issued Conversion Of Accrued Interest
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45000 usd
CY2022 sgbx Common Stock Issued Conversion Of Accrued Interest
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CY2023 us-gaap Contribution Of Property
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969188 usd
CY2022 us-gaap Contribution Of Property
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CY2023 sgbx Restricted Stock Units Issued
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30203 usd
CY2022 sgbx Restricted Stock Units Issued
RestrictedStockUnitsIssued
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8220004 usd
CY2022 sgbx Distribution To Subsidiary
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354329 usd
CY2022 sgbx Common Stock And Warrants Issued
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CY2023 us-gaap Number Of Operating Segments
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4 segments
CY2023Q4 sgbx Number Of Core Product Offerings
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3 item
CY2023Q4 us-gaap Cash And Cash Equivalents At Carrying Value
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17448 usd
CY2023Q4 us-gaap Other Assets Current
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CY2023Q4 us-gaap Revenue Remaining Performance Obligation
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1902332 usd
CY2023 sgbx Working Capital
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CY2023 us-gaap Use Of Estimates
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<div style="font-family: 'times new roman', times; font-size: 10pt;"> <div> <div style="border-left: none; border-right: none;"> <div style="border-left: none; border-right: none;"> <div> <div> <p style="color: #000000;font: 10pt 'Times New Roman', Times, serif;letter-spacing: normal;orphans: 2;text-indent: 0px;text-transform: none;white-space: normal;widows: 2;word-spacing: 0px;-webkit-text-stroke-width: 0px;text-decoration-style: initial;text-decoration-color: initial;margin: 0pt 0px 0pt 0.5in;"><span style="font-family: 'times new roman', times; line-height: inherit;"><span style="color: black;"><b><i>Accounting estimates<span style="line-height: inherit;"> </span></i></b>– The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates, judgements and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period, together with amounts disclosed in the related notes to the financial statements. The Company's estimates used in these financial statements include, but are not limited to, revenue recognition, <span style="color: #000000; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: justify; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; line-height: inherit; display: inline !important;">stock-based compensation, accounts receivable reserves, inventory valuations, goodwill, the valuation allowance related to the Company’s deferred tax assets, the carrying amount of intangible assets, right of use assets and the recoverability and useful lives of long-lived assets. Certain of the Company’s estimates could be affected by external conditions, including those unique to the Company and general economic conditions. It is reasonably possible that these external factors could have an effect on the Company’s estimates and could cause actual results to differ from those estimates.</span>   </span></span></p> </div> </div> </div> </div> </div> </div>
CY2023 sgbx Warranty Offered On Completed Contracts
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P1Y
CY2023 us-gaap Deferred Revenue Revenue Recognized1
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0 usd
CY2022 us-gaap Deferred Revenue Revenue Recognized1
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11600000 usd
CY2023 sgbx Number Of Primary Operating Segments Which Contributed Revenues Of Entity
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2 segments
CY2023 sgbx Revenue At Point In Time
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0 usd
CY2022 sgbx Revenue At Point In Time
RevenueAtPointInTime
11641727 usd
CY2022 sgbx Revenue Recognized Over Time
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12752219 usd
CY2023 sgbx Total Construction Revenue Segment
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16523080 usd
CY2023Q4 sgbx Total Construction Revenue Segment Percentage
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1 pure
CY2022 sgbx Total Construction Revenue Segment
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12752219 usd
CY2022Q4 sgbx Total Construction Revenue Segment Percentage
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0.52 pure
CY2023 sgbx Total Medical Revenue Segment
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CY2023Q4 sgbx Total Medical Revenue Segment Percentage
TotalMedicalRevenueSegmentPercentage
pure
CY2022 sgbx Total Medical Revenue Segment
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11641727 usd
CY2022Q4 sgbx Total Medical Revenue Segment Percentage
TotalMedicalRevenueSegmentPercentage
0.48 pure
CY2023 sgbx Revenue From Contract With Segments Customer Excluding Assessed Tax
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16523080 usd
CY2023 sgbx Revenue From Contract With Segments Customer Excluding Assessed Tax Percentage
RevenueFromContractWithSegmentsCustomerExcludingAssessedTaxPercentage
1 pure
CY2022 sgbx Revenue From Contract With Segments Customer Excluding Assessed Tax
RevenueFromContractWithSegmentsCustomerExcludingAssessedTax
24393946 usd
CY2022 sgbx Revenue From Contract With Segments Customer Excluding Assessed Tax Percentage
RevenueFromContractWithSegmentsCustomerExcludingAssessedTaxPercentage
1 pure
CY2023Q4 us-gaap Deferred Costs And Other Assets
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102217 usd
CY2023Q4 us-gaap Deferred Costs Current And Noncurrent
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203926 usd
CY2023 sgbx Accumulated Amortization Related To Deferred Costs
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173337 usd
CY2023 sgbx Deferred Contract Costs Amortization Expense
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40785 usd
CY2022 sgbx Deferred Contract Costs Amortization Expense
DeferredContractCostsAmortizationExpense
40785 usd
CY2020Q3 us-gaap Stock Issued During Period Shares Restricted Stock Award Gross
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200000 shares
CY2023 us-gaap Equity Method Investment Other Than Temporary Impairment
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0 usd
CY2023Q4 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
17448 usd
CY2022Q4 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
582776 usd
CY2022Q4 us-gaap Short Term Investments
ShortTermInvestments
0 usd
CY2023Q4 us-gaap Short Term Investments
ShortTermInvestments
0 usd
CY2023 us-gaap Goodwill Impairment Loss
GoodwillImpairmentLoss
1309330 usd
CY2022 us-gaap Goodwill Impairment Loss
GoodwillImpairmentLoss
0 usd
CY2023 us-gaap Bankruptcy Proceedings Description Of Proceedings
BankruptcyProceedingsDescriptionOfProceedings
Intangible assets consist of $2,766,000 of proprietary knowledge and technology, which is being amortized over 20 years. In addition, included in intangible assets is $68,344 of trademarks, and $238,422 of website costs that are being amortized over 5 years.
CY2023 us-gaap Impairment Of Intangible Assets Excluding Goodwill
ImpairmentOfIntangibleAssetsExcludingGoodwill
1880547 usd
CY2022 us-gaap Impairment Of Intangible Assets Excluding Goodwill
ImpairmentOfIntangibleAssetsExcludingGoodwill
0 usd
CY2023Q4 us-gaap Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
2852929 usd
CY2023 us-gaap Adjustment For Amortization
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187640 usd
CY2022Q4 us-gaap Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
980963 usd
CY2022 us-gaap Adjustment For Amortization
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164092 usd
CY2022Q4 us-gaap Accounts Receivable Gross Current
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1426202 usd
CY2021Q4 us-gaap Accounts Receivable Gross Current
AccountsReceivableGrossCurrent
3880762 usd
CY2023Q4 us-gaap Allowance For Doubtful Accounts Receivable Current
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637134 usd
CY2021Q2 sgbx Project Development Costs
ProjectDevelopmentCosts
824231 usd
CY2021Q2 sgbx Project Development Costs Book Value
ProjectDevelopmentCostsBookValue
4400361 usd
CY2023 us-gaap Gain Loss Related To Litigation Settlement
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450000 usd
CY2023 sgbx Miscellaneous Income Included In Other Income
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173314 usd
CY2022 us-gaap Gain Loss Related To Litigation Settlement
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150000 usd
CY2023 sgbx Accounts Receivable From Lawsuit Settlement Written Off
AccountsReceivableFromLawsuitSettlementWrittenOff
100000 usd
CY2023 sgbx Accounts Payable Write Off
AccountsPayableWriteOff
178000 usd
CY2023 sgbx Accounts Payable Balance Settlement
AccountsPayableBalanceSettlement
390000 usd
CY2023 us-gaap Concentration Risk Credit Risk
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<p style="margin: 0pt 0pt 0pt 36pt;"><span style="font-family: 'Times New Roman'; font-size: 10pt; font-style: italic; font-weight: bold; line-height: inherit;">Concentrations of credit risk </span><span style="font-family: 'Times New Roman'; font-size: 10pt; font-style: italic; line-height: inherit;">–</span><span style="font-family: 'Times New Roman'; font-size: 10pt; line-height: inherit;"> Financial instruments, that potentially subject the Company to concentration of credit risk, consist principally of cash and cash equivalents. The Company places its cash with high credit quality institutions. At times, such amounts may be in excess of the FDIC insurance limits. The Company has not experienced any losses in such account and believes that it is not exposed to any significant credit risk on the account.</span></p> <p style="margin: 0pt 0pt 0pt 36pt; text-indent: 36pt;"><span style="font-family: 'Times New Roman'; font-size: 10pt; line-height: inherit;"> </span></p> <p style="margin: 0pt 0pt 0pt 36pt;"><span style="font-family: 'Times New Roman'; font-size: 10pt; line-height: inherit;"><span style="font-family: 'times new roman', times; line-height: inherit;">With respect to receivables, concentrations of credit risk are limited to a few customers in the construction industry. The Company performs ongoing credit evaluations of its customers’ financial condition and, generally, requires no collateral from its customers other than normal lien rights. At <span>December 31, 2023</span> and </span><span>2022</span><span style="font-family: 'times new roman', times; line-height: inherit;">, </span>100<span style="font-family: 'times new roman', times; line-height: inherit;">% and </span>80<span style="font-family: 'times new roman', times; line-height: inherit;">%, respectively, of the Company’s gross accounts receivable were due from </span>three<span style="font-family: 'times new roman', times; line-height: inherit;"> and four customers</span>.</span></p> <p style="margin: 0pt; text-indent: 36pt;"><span style="font-family: 'Times New Roman'; font-size: 10pt; line-height: inherit;"> </span></p> <p style="margin: 0pt 0pt 0pt 36pt;"><span style="font-family: 'Times New Roman'; font-size: 10pt; line-height: inherit;"><span style="color: #000000; font-family: 'times new roman', times; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: justify; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important; line-height: inherit;">Revenue in excess of<span style="line-height: inherit;"> </span></span>10<span style="color: #000000; font-family: 'times new roman', times; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: justify; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important; line-height: inherit;">% relating to</span><span style="color: #000000; font-family: 'times new roman', times; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: justify; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important; line-height: inherit;"><span style="line-height: inherit;"> one</span></span><span style="color: #000000; font-family: 'times new roman', times; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: justify; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important; line-height: inherit;"><span style="line-height: inherit;"> </span>customer represented approximately<span style="line-height: inherit;"> 87</span></span><span style="color: #000000; font-family: 'times new roman', times; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: justify; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important; line-height: inherit;">% and<span style="line-height: inherit;"> 65</span></span><span style="color: #000000; font-family: 'times new roman', times; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: justify; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important; line-height: inherit;">% of the Company's total revenue for the year ended <span>December 31, 2023</span> and <span>2022</span>, respectively. </span></span></p> <p style="margin: 0pt 0pt 0pt 36pt;"><br/></p> <p style="margin: 0pt 0pt 0pt 36pt;"><span style="background-color: #ffffff; line-height: inherit;"><span style="color: #000000; font-family: 'times new roman', times; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: justify; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; background-color: #ffffff; line-height: inherit;">For the year ending <span>December 31, 2023</span> and <span>2022</span>, there were no vendors that represented 10% or more of our cost of revenue.</span></span><span style="color: #000000; font-family: 'times new roman', times; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: justify; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important; line-height: inherit;"> </span><span style="color: #000000; font-family: 'times new roman', times; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: justify; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important; line-height: inherit;">The Company believes it has access to alternative suppliers, with limited disruption to the business, should circumstances change with its existing suppliers.</span><span style="font-family: 'Times New Roman'; font-size: 10pt;"> </span></p>
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