Safe & Green Development Corporation (SG DevCo) reported significant financial developments in its 10-Q filing for the nine months ended September 30, 2024. The company’s total assets increased to $13.0 million from $9.6 million at the end of 2023, primarily driven by a rise in current assets, which grew to $850,000 from $235,000. However, total liabilities also surged to $12.2 million, up from $7.7 million, leading to a decrease in stockholder equity to $820,872 from $1.9 million.

Revenue for the three months ended September 30, 2024, was $81,210, marking the first revenue reported for this period, compared to no sales in the same quarter of 2023. For the nine months ended September 30, 2024, total revenue reached $173,188, reflecting the initiation of new business lines. Despite this revenue growth, the company faced substantial operating losses, reporting $(1.4 million) for the third quarter and $(4.8 million) for the nine-month period, compared to $(583,987) and $(1.8 million) respectively in the prior year. The net loss for the nine months was $(7.4 million), significantly higher than $(2.6 million) in 2023.

Operating expenses surged, with payroll and related expenses for the nine months increasing to $3.1 million from $898,876, largely due to stock-based compensation. Other operating expenses also rose to $1.8 million from $902,488, attributed to higher professional fees. Interest expenses escalated to $2.6 million from $814,922, reflecting an increase in notes payable.

Strategically, SG DevCo has been active in joint ventures, including three in Texas for property development, and has announced plans to monetize real estate holdings. The company completed the acquisition of Majestic World Holdings LLC, a prop-tech firm, for $500,000 in stock and cash, aiming to expand into technology. Additionally, SG DevCo entered into a joint venture with Milk & Honey LLC for developing single-family homes, contributing $10,000 in initial capital.

The company has also faced challenges regarding compliance with NASDAQ listing requirements, having submitted a compliance plan after falling below the minimum stockholder equity threshold. As of October 22, 2024, SG DevCo regained compliance after maintaining a stock price above $1.00 for ten consecutive business days.

Overall, while SG DevCo has made strides in revenue generation and strategic partnerships, it continues to grapple with significant operating losses and financial challenges.