Safe & Green Development Corporation (SG DevCo) reported a net loss of $8.9 million for the fiscal year ending December 31, 2024, compared to a loss of $4.2 million in the previous year. The company generated revenue of $207,552, marking a significant increase from zero revenue in 2023, primarily due to new business lines. Total operating expenses rose to $6.6 million, driven by increased payroll and related expenses, which included stock-based compensation. Interest expenses also surged to $3.5 million, reflecting higher debt levels.
In terms of strategic developments, SG DevCo has focused on expanding its real estate portfolio and entering new markets. The company has engaged in joint ventures aimed at developing green single-family homes in Southern Texas and has initiated construction on five homes through its Sugar Phase joint venture. Additionally, SG DevCo is in the process of acquiring Resource Group US Holdings LLC, which specializes in transforming organic waste into environmentally friendly soil products. This acquisition is expected to shift the company's primary focus towards engineered soils and composting, with plans to complete the transaction by the second quarter of 2025.
Operationally, SG DevCo has made strides in its real estate activities, acquiring three properties and investing in two entities that have acquired additional properties for future development. The company has also entered into multiple joint ventures, including those with Milk & Honey LLC, to enhance its market presence. As of January 2025, SG DevCo has six employees and is actively working to subdivide its McLean property into buildable lots, which it plans to sell or develop internally.
The company has faced challenges, including a material weakness in its internal controls over financial reporting, which was identified during the audit process. Management has committed to addressing these weaknesses by engaging external consultants to assist in financial statement preparation. SG DevCo's financial health remains a concern, as it has incurred significant losses since inception and relies heavily on external financing to support its operations and growth plans. The company has indicated that it will need to raise additional capital to continue its business activities, which may not be available on favorable terms.
Looking ahead, SG DevCo anticipates that the acquisition of Resource Group will provide strategic benefits, including market entry into the engineered soils sector and operational synergies. However, the company acknowledges the risks associated with this transition and the need for effective integration of the new business. The outlook remains cautious, with management emphasizing the importance of securing additional funding to support ongoing operations and development initiatives.
About Safe & Green Development Corp
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