Safe & Green Holdings Corp. reported a significant decline in financial performance for the fiscal year ending December 31, 2024, with total revenue dropping to $4.98 million from $16.52 million in 2023, marking a 70% decrease. The construction services segment, which accounted for the majority of revenue, experienced a similar decline, primarily due to a reduction in the number of projects undertaken during the year. The company also reported a net loss attributable to common stockholders of $22.6 million, a slight improvement from the previous year's loss of $26.3 million. Operating losses decreased to $9.71 million from $21.75 million, reflecting a reduction in project-related losses and expenses.
In terms of strategic developments, Safe & Green underwent a significant organizational change with the deconsolidation of its subsidiary, Safe and Green Development Corporation (SG DevCorp), which fell below 50% ownership during 2024. This deconsolidation resulted in a gain of approximately $4.64 million, impacting the company's financial results. The company also formed Safe & Green Medical Corporation in March 2023 to expand its medical segment, although it has yet to generate revenue from this initiative. Additionally, the company opened a second manufacturing facility in Durant, Oklahoma, in late 2023, aimed at increasing production capacity.
Operationally, Safe & Green's customer base remains concentrated, with three customers accounting for 83% of total revenue in 2024, similar to the previous year. The company reported a backlog of approximately $1.2 million as of December 31, 2024, down from $1.9 million the previous year, indicating a decrease in future revenue expectations. The company employed five full-time employees directly, while its subsidiary SG Echo employed 26, reflecting a lean operational structure amid ongoing financial challenges.
The company continues to face significant liquidity risks, with cash and cash equivalents totaling $375,873 at year-end, down from $14,212 in 2023. Cash used in operations increased to $10.9 million, primarily due to ongoing losses and reduced working capital. Safe & Green has indicated the need for additional capital to sustain operations, raising concerns about its ability to continue as a going concern. The company has relied on financing through short-term notes and cash advance agreements to manage its cash flow needs.
Looking ahead, Safe & Green's management has expressed uncertainty regarding its ability to generate sufficient revenue or secure additional financing. The company is actively seeking to increase sales and reduce operating expenses to improve its financial position. However, the cyclical nature of the construction industry, combined with ongoing economic challenges, may continue to impact its performance. The company remains focused on executing its growth strategy while navigating these financial and operational hurdles.
About SAFE & GREEN HOLDINGS CORP.
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