2024 Q1 Form 10-K Financial Statement

#000121390024028274 Filed on April 01, 2024

View on sec.gov

Income Statement

Concept 2024 Q1 2023 Q4 2023
Revenue $49.82K $0.00 $0.00
YoY Change
Cost Of Revenue
YoY Change
Gross Profit
YoY Change
Gross Profit Margin
Selling, General & Admin $535.4K $1.222M $3.023M
YoY Change -25.64% 49.03% 41.28%
% of Gross Profit
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $161.00 $160.00 $236.00
YoY Change
% of Gross Profit
Operating Expenses $2.551M $1.222M $3.023M
YoY Change 254.37% 49.03% 41.28%
Operating Profit -$2.502M -$3.023M
YoY Change 247.01% 41.42%
Interest Expense $566.0K -$363.4K $1.178M
YoY Change -414.44% 179.53% -480.1%
% of Operating Profit
Other Income/Expense, Net $900.00 $1.218K
YoY Change
Pretax Income -$3.068M -$1.585M -$4.201M
YoY Change 240.85% 65.06% 72.15%
Income Tax
% Of Pretax Income
Net Earnings -$3.068M -$1.585M -$4.201M
YoY Change 240.85% 65.06% 72.15%
Net Earnings / Revenue -6158.0%
Basic Earnings Per Share -$0.26 -$1.43
Diluted Earnings Per Share -$0.26 -$0.54 -$1.42
COMMON SHARES
Basic Shares Outstanding 14.35M shares 10.00M shares 2.933M shares
Diluted Shares Outstanding 11.86M shares 2.933M shares

Balance Sheet

Concept 2024 Q1 2023 Q4 2023
SHORT-TERM ASSETS
Cash & Short-Term Investments $77.54K $3.240K $3.240K
YoY Change -94.21%
Cash & Equivalents $77.54K $3.236K
Short-Term Investments
Other Short-Term Assets $410.4K $232.0K $232.0K
YoY Change -44.54% 673.3% 673.3%
Inventory
Prepaid Expenses
Receivables
Other Receivables
Total Short-Term Assets $487.9K $235.2K $235.2K
YoY Change -76.54% 813.14% 684.1%
LONG-TERM ASSETS
Property, Plant & Equipment $35.41K $3.569K $1.194M
YoY Change -97.02% 0.35%
Goodwill $1.811M $22.21K
YoY Change
Intangibles $153.4K $22.21K
YoY Change
Long-Term Investments $3.643M $3.643M $3.643M
YoY Change 0.62% 1.19% 1.18%
Other Assets $4.492M $4.466M $4.466M
YoY Change 0.49% 7912.81% 0.35%
Total Long-Term Assets $11.32M $9.325M $9.325M
YoY Change 21.9% 0.88% 0.92%
TOTAL ASSETS
Total Short-Term Assets $487.9K $235.2K $235.2K
Total Long-Term Assets $11.32M $9.325M $9.325M
Total Assets $11.81M $9.560M $9.560M
YoY Change 3.89% 3.14% 3.13%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.301M $601.3K $601.3K
YoY Change 519.65% 131.27% 131.27%
Accrued Expenses
YoY Change
Deferred Revenue
YoY Change
Short-Term Debt $6.756M $6.811M $6.811M
YoY Change 42.54% 157.18% 157.02%
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $8.318M $7.672M $7.672M
YoY Change -9.1% 8.0% 8.06%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change
Other Long-Term Liabilities $945.0K
YoY Change
Total Long-Term Liabilities $945.0K $0.00 $0.00
YoY Change
TOTAL LIABILITIES
Total Short-Term Liabilities $8.318M $7.672M $7.672M
Total Long-Term Liabilities $945.0K $0.00 $0.00
Total Liabilities $9.263M $7.672M $7.672M
YoY Change 1.23% 8.06% 8.06%
SHAREHOLDERS EQUITY
Retained Earnings -$10.20M -$7.131M
YoY Change 143.36%
Common Stock $14.35K $10.20K
YoY Change 1019900.0%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $2.550M $1.888M $1.888M
YoY Change
Total Liabilities & Shareholders Equity $11.81M $9.560M $9.560M
YoY Change 3.89% 3.14% 3.13%

Cashflow Statement

Concept 2024 Q1 2023 Q4 2023
OPERATING ACTIVITIES
Net Income -$3.068M -$1.585M -$4.201M
YoY Change 240.85% 65.06% 72.15%
Depreciation, Depletion And Amortization $161.00 $160.00 $236.00
YoY Change
Cash From Operating Activities -$724.5K $4.710K -$4.571M
YoY Change -21.25% -100.61% 97.01%
INVESTING ACTIVITIES
Capital Expenditures $32.00K $0.00 $3.805K
YoY Change -99.68%
Acquisitions
YoY Change
Other Investing Activities -$25.07K $0.00 -$52.27K
YoY Change -16.43% -75.11%
Cash From Investing Activities -$57.07K $0.00 -$59.61K
YoY Change 42.67% -95.74%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities $855.9K -34.83K $4.633M
YoY Change -62.79% -104.52% 24.87%
NET CHANGE
Cash From Operating Activities -$724.5K 4.710K -$4.571M
Cash From Investing Activities -$57.07K 0.000 -$59.61K
Cash From Financing Activities $855.9K -34.83K $4.633M
Net Change In Cash $74.30K -30.12K $2.516K
YoY Change -94.46% -12936441495552160.0% -125.16%
FREE CASH FLOW
Cash From Operating Activities -$724.5K $4.710K -$4.571M
Capital Expenditures $32.00K $0.00 $3.805K
Free Cash Flow -$756.5K $4.710K -$4.574M
YoY Change -17.77% -100.61% 30.33%

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<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>1.</b></span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Description of Business</b></span></td> </tr></table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.3in; text-align: justify; text-indent: -0.3in"><span style="font-family: Times New Roman, Times, Serif"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif">Safe and Green Development Corporation (the “Company” or “SG DevCo”)), previously known as SGB Development Corp., a Delaware corporation was incorporated on February 17, 2021. The Company was formed for the purpose of real property development primarily in the acquisition, development, management, sale and leasing of green single or multi-family projects in underserved regions nationally. The Company has a minority interest in Norman Berry II Owners LLC and JDI-Cumberland Inlet LLC as described further below.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 16.2pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 16.2pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif"><span style="text-decoration:underline">Going Concern</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 16.2pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif"> </span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">The Company began operations during 2021 and has incurred net losses during since inception and has a net capital deficiency, which raises substantial doubt about its ability to continue as a going concern Prior to becoming a public company, the Company’s operations had primarily been funded through advances from Safe &amp; Green Holdings Corp., the Company’s then parent company (“Parent”) and the Company had been largely dependent upon Parent for funding. The Company has recently funded its operations through a bridge note financing, project level financing, and the issuance of its equity and debt securities. The Company has also initiated strategic monetization of properties, which may yield additional financing proceeds to fund operations. Management believes that these actions will enable the Company to continue as a going concern.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif"><span style="text-decoration:underline">Separation and Distribution</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 16.2pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif">In December 2022, Parent and then owner of 100% of our issued and outstanding securities, announced its plan to separate the Company and Parent into two separate publicly traded companies (the “Separation”). To implement the Separation, on September 27, 2023 (the “Distribution Date”), Parent, effected a pro rata distribution to Parent’s stockholders of approximately 30% of the outstanding shares of the Company’s common stock (the “Distribution”). In connection with the Distribution, each Parent stockholder received 0.930886 shares of the Company’s common stock for every five (5) shares of Parent common stock held as of the close of business on September 8, 2023, the record date for the Distribution, as well as a cash payment in lieu of any fractional shares. Immediately after the Distribution, the Company was no longer a wholly owned subsidiary of Parent and Parent held approximately 70% of the Company’s issued and outstanding securities. On September 28, 2023, the Company’s common stock began trading on the Nasdaq Capital Market under the symbol “SGD.”</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 16.2pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif">In connection with the Separation and Distribution, the Company entered into a separation and distribution agreement and several other agreements with Parent. These agreements provide for the allocation between Parent and the Company of the assets, employees, liabilities and obligations (including, among others, investments, property, employee benefits and tax-related assets and liabilities) of Parent and its subsidiaries attributable to periods prior to, at and after the Separation and will govern the relationship between the Company and Parent subsequent to the completion of the Separation. In addition to the separation and distribution agreement, the other principal agreements entered into with Parent included a tax matters agreement and a shared services agreement. </span></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif"><b><i>Accounting estimates </i></b>— The preparation of financial statements in conformity with GAAP requires management to make estimates 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 expenses during the reporting period. Actual results could differ from those estimates.</span></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif"><b><i>Project Development Costs </i></b>— Project development costs are stated at cost. At December 31, 2022, the Company’s project development costs are expenses incurred related to development costs on various projects that are capitalized during the period the project is under development. </span></p>
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CY2023 sgbx Description Of Master Purchase Agreement
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The Master Purchase Agreement provides that SG Echo will be paid a fee equal to 12% of the agreed cost of each project. The Master Purchase Agreement further provides that payment terms for all design work and the completion of the pre-fabricated container and module shall be made in accordance with the following schedule: (a) a deposit equal to 40% of the cost of the pre- fabricated container and module only shall be paid by us to SG Echo within 5 business days of the mutual execution of a project order; (b) a progress payment (not to exceed to 35% of the cost of the pre-fabricated container and module) shall be paid by us to SG Echo monthly in proportion to the percentage of Work completed, which payment shall be made within 10 business days of the Company receipt of SG Echo’s invoice; (c) a progress payment equal to 15% of the cost of the pre-fabricated container and module shall be paid by us to SG Echo within 10 business days of the delivery of the pre-fabricated container and module to the specific project site; and (d) the final payment equal to 10% of the cost of the pre-fabricated container and module only shall be paid by us to SG Echo within 10 business days of the substantial completion of the Work. Substantial completion of the Work shall be as defined by the applicable project order
CY2023 sgbx Payment Of Sg Echo
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CY2023 us-gaap Effective Income Tax Rate Continuing Operations
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