SG Blocks Reports Second Quarter 2021 Financial Results
SG Blocks (Nasdaq: SGBX) reported record quarterly revenues of $11.9 million for Q2 2021, a significant increase from $630,000 in Q2 2020. Gross profit rose to $2.8 million, while operating expenses grew to $2.8 million. Net loss for the quarter was $1.5 million or negative $0.17 per share. The company is focused on expanding its housing vertical and anticipates positive cash flow by Q4 2021. SG Blocks had 14 projects under contract, with a construction backlog of $21 million as of June 30, 2021. The company aims to maintain high manufacturing capacity and pursue new investment opportunities.
- Record revenue of $11.9 million in Q2 2021, up from $630,000 in Q2 2020.
- Gross profit increased to $2.8 million compared to $370,000 in Q2 2020.
- Anticipating positive cash flow by Q4 2021.
- 14 projects under contract and a construction backlog of $21 million.
- Net loss of $1.5 million or negative $0.17 per share, wider than the net loss of approximately $840,000 in Q2 2020.
- Cash and cash equivalents decreased to $2.3 million from approximately $10.5 million at March 31, 2021.
SG Blocks, Inc. (Nasdaq: SGBX) (“SG Blocks” or the “Company”), a leading designer, innovator and fabricator of modular structures, today reported its financial results for the first quarter ending June 30, 2021.
“The second quarter was a momentous one for SG Blocks, as we achieved record quarterly revenues and made great strides in growing our activity across all verticals,” said Paul Galvin, SG Blocks’ Chairman and Chief Executive Officer. “In particular, we made substantial progress in our housing vertical, launching several new development opportunities where we anticipate earning revenue from both our interest in the projects and by fabricating the units at SG Blocks’ own manufacturing facilities. These announcements provide greater visibility into our earnings over the next several quarters and put us on track to achieve positive cash flow in the fourth quarter of 2021.
“Our goals over the coming quarters will be to execute at a high level on our existing projects, seek new investment opportunities and partners, and continuously expand our manufacturing capacity to support our accelerating pace of activity. We are capturing the benefits of significant tailwinds in the residential development business by helping to deliver much-needed residential units to alleviate a housing shortage across the country. In our health care vertical, we also continue to provide critical health infrastructure with our modular and rapidly deployable COVID testing modules.
“In short, we are making our own destiny and rethinking the way space and buildings are used. We’re continuing to close on developments and launching new projects and ventures each quarter. As our business has grown and our plan is unfolding, we have started to attract interesting, successful and notable partners, employees, and Board Members who share our passion for disrupting real estate and medical testing via safe and green modular solutions. We expect these efforts to pay off for our shareholders as we realize the value of these projects over time.”
Second Quarter 2021 and Subsequent Operational Highlights:
At June 30, 2021, the Company had 14 projects under contract, compared to 16 projects under contract at March 31, 2021. At June 30, 2021, the construction backlog was approximately
As of June 30, 2021, SGB DevCorp. had active residential development projects for a total of 1,752 units.
Concentrated Market Activity
Medical Testing & Services
SG Blocks continues to provide innovative structures, labs, and testing solutions to support the fight against, and recovery from, the COVID-19 pandemic. The Company’s modular solutions can be quickly and efficiently deployed at key locations for much-needed point-of-care patient access, to support the continue reopening and recovery of the U.S. economy.
In May, the Company partnered with Stone Clinical Laboratories to bring COVID-19 testing to Miami’s South Beach area in connection with two events, Food Network’s annual Wine & Food Festival, as well as the Air & Sea Show & Music Explosion.
Also in May, the Company’s Chicago Area Testing subsidiary, in partnership with National Pain Centers, announced an agreement with the Robbins Park District of Robbins, IL to deploy a COVID-19 testing unit to provide health services to the underserved communities of the south suburbs of Chicago.
Manufacturing
After years of outsourcing, SG Blocks is committed to in-house manufacturing excellence. While there are a number of legacy project commitments that will be completed at a cash loss in 2021, going forward, the Company expects to manufacture future projects at a margin of approximately
SG Development Corporation
The Company formed SGB DevCorp. in February 2021 to deliver single family homes, townhomes, and for-rent apartment units across the country. The launch of SGB DevCorp. is expected to provide a host of benefits to SG Blocks, including: i) keeping manufacturing near
In May, SGB DevCorp. acquired a 50+acre site for its previously announced Lago Vista development, on Lake Travis, on the Colorado River in thriving Austin, Texas. The project is expected to consist of up to 225 one- and two-bedroom condominium units, as well as amenities including a community center, marina and health club. Development work is expected to commence in the second quarter of 2022, with an anticipated completion date in the fourth quarter of 2022. SG Blocks expects to capture approximately
In June, the Company announced that SGB DevCorp. acquired a
In June, the groundbreaking occurred on the previously announced Monticello Mews multifamily development project located in the Catskills region of New York. Upon completion, the development is expected to consist of 187 townhomes with one- and two-bedroom units, with amenities including a clubhouse, gym, and outdoor green spaces. The project is expected to be complete in the second quarter of 2023.
In June, the Company announced that SGB DevCorp. has acquired a
Second Quarter 2021 Financial Highlights:
-
Revenue for the second quarter 2021 was
$11.9 million , compared to approximately$630,000 for the second quarter of 2020. The record revenue was achieved despite having several commercial projects that were previously announced being delayed directly and indirectly by the COVID-19 pandemic. -
Gross profit for the second quarter 2021 was
$2.8 million , compared to a gross profit of approximately$370,000 in the second quarter 2020. -
Operating expenses for the second quarter 2021 were
$2.8 million , compared to approximately$1.2 million in the second quarter 2020. Included in second quarter 2021 are one-time start-up costs associated with the multiple closings as well as increased G&A costs related to the hiring of the talent needed to execute our robust backlog and pipeline. -
For the second quarter 2021, net loss attributable to common shareholders was
$1.5 million , or negative ($0.17) per share, compared to a net loss of approximately$840,000 , or negative ($0.16) per share, in the second quarter 2020. The net loss attributable to common shareholders includes the following items:-
Approximately
$465,000 in non-cash depreciation and amortization expenses, non-cash stock compensation expense and litigation expenses as explained in the adjusted EBITDA loss;
-
Approximately
-
Adjusted EBITDA loss for the second quarter 2021 was
$1.1 million ], compared to a loss of$530,000 in the second quarter 2020. -
At June 30, 2021, the Company had total assets of approximately
$25.5 million , compared to approximately$22.3 million at June 30, 2020. -
The Company had cash and cash equivalents of approximately
$2.3 million as of June 30, 2021, compared to approximately$10.5 million at March 31, 2021. -
The reduction in cash is due to investments in development projects totaling
$3.35 million and the acquisition of development land of$3.5 million in the second quarter of 2021. -
Strong liquidity with cash and accounts receivable (due in less than 30 days) at
$6.3 million as of August 13.
Conference Call Information
SG Blocks will host a conference call on Monday, August 16, 2021 at 4:30 p.m. Eastern Time to share its results for the quarter ended June 30, 2021.
Date: Monday, August 16, 2021
Time: 4:30 p.m. ET, 1:30 p.m. PT
Toll-free dial-in number: 1-877-407-9716
International dial-in number: 1-201-493-6779
Conference ID: 13722143
Additionally, a webcast of the conference call will be broadcast live and available for replay at the Investors section of the Company’s website at www.sgblocks.com.
A replay of the conference call will be available after 7:30 p.m. Eastern time through August 30, 2021.
Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 13722143
Use of Non-GAAP Financial Information
In addition to its results under GAAP, the Company presents EBITDA and Adjusted EBITDA for historical periods. EBITDA and Adjusted EBITDA are non-GAAP financial measures and have been presented as supplemental measures of financial performance that are not required by, or presented in accordance with, GAAP. The Company calculates EBITDA as net income (loss) before interest expense, income tax benefit (expense), depreciation and amortization. It calculates Adjusted EBITDA as EBITDA before certain non-recurring adjustments such stock-based compensation expense. EBITDA and Adjusted EBITDA are presented because they are important metrics used by management as one of the means by which it assesses the Company’s financial performance. EBITDA and Adjusted EBITDA are also frequently used by analysts, investors and other interested parties to evaluate companies in the Company’s industry. These measures, when used in conjunction with related GAAP financial measures, provide investors with an additional financial analytical framework that may be useful in assessing the Company and its results of operations.
EBITDA and Adjusted EBITDA have certain limitations. EBITDA and Adjusted EBITDA should not be considered as alternatives to net income (loss), or any other measures of financial performance derived in accordance with GAAP. These measures also should not be construed as an inference that the Company’s future results will be unaffected by unusual or non-recurring items for which these non-GAAP measures make adjustments. Additionally, EBITDA and Adjusted EBITDA are not intended to be liquidity measures because of certain limitations, including, but not limited to: i) they do not reflect the Company’s cash outlays for capital expenditures; They do not reflect changes in, or cash requirements for, working capital; and Although depreciation and amortization are non-cash charges, the assets are being depreciated and amortized and may have to be replaced in the future, and these non-GAAP measures do not reflect cash requirements for such replacements.
The non-GAAP information should be read in conjunction with the Company’s consolidated financial statements and related notes.
The following is a reconciliation of EBITDA and Adjusted EBITDA to the nearest GAAP measure, net loss:
In evaluating EBITDA and Adjusted EBITDA, you should be aware that in the future we will incur expenses that are the same or similar to some of the adjustments made in our calculations, and our presentation of EBITDA and Adjusted EBITDA should not be construed to mean that our future results will be unaffected by such adjustment. Management compensates for these limitations by using EBITDA and Adjusted EBITDA as supplemental financial metrics and in conjunction with our results prepared in accordance with GAAP. The non-GAAP information should be read in conjunction with our consolidated financial statements and related notes.
The following is a reconciliation of EBITDA and Adjusted EBITDA to the nearest GAAP measure, net loss:
|
|
Three Months Ended
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
Six Months Ended
|
|
||||
Net loss attributable to common stockholders of SG Blocks, Inc. |
|
$ |
(1,541,259 |
) |
|
$ |
(837,973 |
) |
|
$ |
(3,575,136 |
) |
|
$ |
(1,585,400 |
) |
Addback interest expense |
|
|
329 |
|
|
|
3,452 |
|
|
|
692 |
|
|
|
6,263 |
|
Addback interest income |
|
|
(13,797 |
) |
|
|
(6,233 |
) |
|
|
(31,267 |
) |
|
|
(11,096 |
) |
Addback depreciation and amortization |
|
|
159,227 |
|
|
|
47,401 |
|
|
|
301,020 |
|
|
|
94,802 |
|
EBITDA (non-GAAP) |
|
|
(1,395,500 |
) |
|
|
(793,353 |
) |
|
|
(3,304,691 |
) |
|
|
(1,495,431 |
) |
Addback litigation expense |
|
|
60,053 |
|
|
|
131,102 |
|
|
|
141,272 |
|
|
|
267,840 |
|
Addback stock compensation expense |
|
|
246,236 |
|
|
|
129,750 |
|
|
|
532,422 |
|
|
|
168,514 |
|
Adjusted EBITDA (non-GAAP) |
|
$ |
(1,089,211 |
) |
|
$ |
(532,501 |
) |
|
$ |
(2,630,997 |
) |
|
$ |
(1,059,077 |
) |
About SG Blocks:
SG Blocks, Inc. is a premier innovator in advancing and promoting the use of code-engineered cargo shipping containers for safe and sustainable construction. The firm offers a product that exceeds many standard building code requirements, and also supports developers, architects, builders and owners in achieving greener construction, faster execution, and stronger buildings of higher value. Each project starts with GreenSteelTM, the structural core and shell of an SG Blocks building, and then is customized to client specifications. For more information, visit www.sgblocks.com.
Safe Harbor Statement
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, forward-looking statements can be identified by terminology such as "may," "should," "potential," "continue," "expects," "anticipates," "intends," "plans," "believes," "estimates," and similar expressions. These forward-looking statements are based on management's expectations and assumptions as of the date of this press release and include statements regarding the Company being on track to achieve positive cash flow in the fourth quarter of 2021, the Company’s efforts paying off for our shareholders as the value of these projects is realized over time, the Company manufacturing future projects at a margin of approximately
SG BLOCKS, INC. AND SUBSIDIARIES |
||||||||
Condensed Consolidated Balance Sheets |
||||||||
|
|
June 30,
|
|
|
December 31,
|
|
||
|
|
(Unaudited) |
|
|
|
|
||
Assets |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
2,323,599 |
|
|
$ |
13,010,356 |
|
Accounts receivable, net |
|
|
2,719,713 |
|
|
|
2,635,608 |
|
Contract assets |
|
|
2,122,231 |
|
|
|
1,303,136 |
|
Inventories |
|
|
1,409,915 |
|
|
|
778,144 |
|
Prepaid expenses and other current assets |
|
|
553,975 |
|
|
|
570,775 |
|
Total current assets |
|
|
9,129,433 |
|
|
|
18,298,019 |
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment, net |
|
|
7,177,533 |
|
|
|
2,683,014 |
|
Goodwill |
|
|
1,309,330 |
|
|
|
1,309,330 |
|
Right-of-use asset |
|
|
1,478,544 |
|
|
|
1,537,545 |
|
Long-term note receivable |
|
|
701,233 |
|
|
|
682,637 |
|
Intangible assets, net |
|
|
2,178,879 |
|
|
|
2,218,609 |
|
Deferred contract costs, net |
|
|
132,552 |
|
|
|
152,944 |
|
Investment in and advances to equity affiliates |
|
|
3,350,329 |
|
|
|
— |
|
Total Assets |
|
$ |
25,457,833 |
|
|
$ |
26,882,098 |
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable and accrued expenses |
|
$ |
5,920,137 |
|
|
$ |
3,961,961 |
|
Contract liabilities |
|
|
789,068 |
|
|
|
1,774,740 |
|
Lease liability, current maturities |
|
|
435,608 |
|
|
|
326,654 |
|
Due to affiliates |
|
|
381,770 |
|
|
|
965,561 |
|
Assumed liability |
|
|
43,295 |
|
|
|
200,765 |
|
Other current liabilities |
|
|
5,000 |
|
|
|
5,000 |
|
Total current liabilities |
|
|
7,574,878 |
|
|
|
7,234,681 |
|
|
|
|
|
|
|
|
|
|
Lease liability, net of current maturities |
|
|
1,042,232 |
|
|
|
1,209,594 |
|
Total liabilities |
|
|
8,617,110 |
|
|
|
8,444,275 |
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
|
|
|
Preferred stock, |
|
|
— |
|
|
|
— |
|
Common stock, |
|
|
88,225 |
|
|
|
85,962 |
|
Additional paid-in capital |
|
|
41,681,186 |
|
|
|
40,443,840 |
|
Accumulated deficit |
|
|
(25,851,682 |
) |
|
|
(22,276,546 |
) |
Total SG Blocks, Inc. stockholders’ equity |
|
|
15,917,729 |
|
|
|
18,253,256 |
|
Non-controlling interest |
|
|
922,994 |
|
|
|
184,567 |
|
Total stockholders’ equity |
|
|
16,840,723 |
|
|
|
18,437,823 |
|
Total Liabilities and Stockholders’ Equity |
|
$ |
25,457,833 |
|
|
$ |
26,882,098 |
|
SG BLOCKS, INC. AND SUBSIDIARIES |
||||||||||||
Condensed Consolidated Statements of Operations |
||||||||||||
|
For the
|
|
For the
|
|
For the
|
|
For the
|
|
||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
||||
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
||||
Revenue: |
|
|
|
|
|
|
|
|
||||
Construction services |
$ |
2,064,438 |
|
$ |
534,526 |
|
$ |
5,202,153 |
|
$ |
623,867 |
|
Engineering services |
|
4,059 |
|
|
94,423 |
|
|
98,008 |
|
|
203,838 |
|
Medical revenue |
|
9,785,490 |
|
|
— |
|
|
15,741,453 |
|
|
— |
|
Total |
|
11,853,987 |
|
|
628,949 |
|
|
21,041,614 |
|
|
827,705 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
Construction services |
|
3,164,695 |
|
|
193,208 |
|
|
7,258,235 |
|
|
265,119 |
|
Engineering services |
|
32,197 |
|
|
61,508 |
|
|
41,967 |
|
|
142,372 |
|
Medical revenue |
|
5,818,051 |
|
|
— |
|
|
9,694,187 |
|
|
— |
|
Total |
|
9,014,943 |
|
|
254,716 |
|
|
16,994,389 |
|
|
407,491 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
2,839,044 |
|
|
374,233 |
|
|
4,047,225 |
|
|
420,214 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Payroll and related expenses |
|
801,664 |
|
|
392,338 |
|
|
1,629,186 |
|
|
664,146 |
|
General and administrative expenses |
|
1,888,162 |
|
|
766,750 |
|
|
3,349,518 |
|
|
1,258,064 |
|
Marketing and business development expense |
|
72,438 |
|
|
30,899 |
|
|
143,065 |
|
|
63,237 |
|
Pre-project expenses |
|
847 |
|
|
25,000 |
|
|
10,980 |
|
|
25,000 |
|
Total |
|
2,763,111 |
|
|
1,214,987 |
|
|
5,132,749 |
|
|
2,010,447 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) |
|
75,933 |
|
|
(840,754 |
) |
|
(1,085,524 |
) |
|
(1,590,233 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
(329 |
) |
|
(3,452 |
) |
|
(692 |
) |
|
(6,263 |
) |
Interest income |
|
13,797 |
|
|
6,233 |
|
|
31,267 |
|
|
11,096 |
|
Other income |
|
61,024 |
|
|
— |
|
|
61,024 |
|
|
— |
|
Total |
|
74,492 |
|
|
2,781 |
|
|
91,599 |
|
4,833 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes |
|
150,425 |
|
|
(837,973 |
) |
|
(993,925 |
) |
|
(1,585,400 |
) |
Income tax expense |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
150,425 |
|
|
(837,973 |
) |
|
(993,925 |
) |
|
(1,585,400 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: net income attributable to noncontrolling interests |
|
1,691,684 |
|
|
— |
|
|
2,581,211 |
|
|
— |
|
Net loss attributable to common stockholders of SG Blocks, Inc. |
$ |
(1,541,259 |
) |
$ |
(837,973 |
) |
$ |
(3,575,136 |
) |
$ |
(1,585,400 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share attributable to SG Blocks, Inc. - basic and diluted: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
$ |
(0.17 |
) |
$ |
(0.16 |
) |
$ |
(0.41 |
) |
$ |
(0.48 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
8,822,278 |
|
|
5,369,132 |
|
|
8,783,806 |
|
|
3,278,913 |
|
SG BLOCKS, INC. AND SUBSIDIARIES |
||||||||||||||||||||||||||||
Condensed Consolidated Statements of Changes in Stockholders’ Equity |
||||||||||||||||||||||||||||
|
|
|
|
|
Additional
|
|
|
Accumulated |
|
|
|
SG Blocks
|
|
|
Noncontrolling |
|
|
Total
|
|
|||||||||
|
|
Shares |
|
|
Amount |
|
|
Capital |
|
|
Deficit |
|
|
Equity |
|
|
Interests |
|
|
Equity |
|
|||||||
Balance at March 31, 2021 |
|
|
8,821,289 |
|
|
$ |
88,213 |
|
|
$ |
41,431,213 |
|
|
$ |
(24,310,423 |
) |
|
$ |
17,209,003 |
|
|
$ |
1,074,094 |
|
|
$ |
18,283,097 |
|
Stock-based compensation |
|
|
— |
|
|
|
— |
|
|
|
246,236 |
|
|
|
— |
|
|
|
246,236 |
|
|
|
— |
|
|
|
246,236 |
|
Conversion of warrants to common stock |
|
|
1,200 |
|
|
|
12 |
|
|
|
3,737 |
|
|
|
— |
|
|
|
3,749 |
|
|
|
— |
|
|
|
3,749 |
|
Noncontrolling interest distribution |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,842,784 |
) |
|
|
(1,842,784 |
) |
Net income (loss) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,541,259 |
) |
|
|
(1,541,259 |
) |
|
|
1,691,684 |
|
|
|
150,425 |
|
Balance at June 30, 2021 |
|
|
8,822,489 |
|
|
$ |
88,225 |
|
|
$ |
41,681,186 |
|
|
$ |
(25,851,682 |
) |
|
$ |
15,917,729 |
|
|
$ |
922,994 |
|
|
$ |
16,840,723 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December 31, 2020 |
|
|
8,596,189 |
|
|
$ |
85,962 |
|
|
$ |
40,443,840 |
|
|
$ |
(22,276,546 |
) |
|
$ |
18,253,256 |
|
|
$ |
184,567 |
|
|
$ |
18,437,823 |
|
Stock-based compensation |
|
|
— |
|
|
|
— |
|
|
|
532,422 |
|
|
|
— |
|
|
|
532,422 |
|
|
|
— |
|
|
|
532,422 |
|
Conversion of warrants to common stock |
|
|
226,300 |
|
|
|
2,263 |
|
|
|
704,924 |
|
|
— |
|
|
|
707,187 |
|
|
|
— |
|
|
|
707,187 |
|
|
Noncontrolling interest distribution |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,842,784 |
) |
|
|
(1,842,784 |
) |
Net income (loss) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3,575,136 |
) |
|
|
(3,575,136 |
) |
|
|
2,581,211 |
|
|
|
(993,925 |
) |
Balance at June 30, 2021 |
|
|
8,822,489 |
|
|
$ |
88,225 |
|
|
$ |
41,681,186 |
|
|
$ |
(25,851,682 |
) |
|
$ |
15,917,729 |
|
|
$ |
922,994 |
|
|
$ |
16,840,723 |
|
|
|
|
|
|
Additional
|
|
|
Accumulated |
|
|
|
SG Blocks
|
|
|
Noncontrolling |
|
|
Total
|
|
|||||||||
|
|
Shares |
|
|
Amount |
|
|
Capital |
|
|
Deficit |
|
|
Equity |
|
|
Interests |
|
|
Equity |
|
|||||||
Balance at March 31, 2020 |
|
|
1,170,524 |
|
|
$ |
11,705 |
|
|
$ |
21,970,903 |
|
|
$ |
(18,331,244 |
) |
|
$ |
3,651,364 |
|
|
$ |
— |
|
|
$ |
3,651,364 |
|
Stock-based compensation |
|
|
— |
|
|
|
— |
|
|
|
129,750 |
|
|
|
— |
|
|
|
129,750 |
|
|
|
— |
|
|
|
129,750 |
|
Conversion of restricted stock units to common stock |
|
|
12,000 |
|
|
|
120 |
|
|
|
(120 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Conversion of debt exchange to common stock |
|
|
73,665 |
|
|
737 |
|
|
|
205,526 |
|
|
— |
|
|
|
206,263 |
|
|
— |
|
|
|
206,263 |
||||
Issuance of common stock, net of issuance costs |
|
|
7,340,000 |
|
|
|
73,400 |
|
|
|
17,045,080 |
|
|
|
— |
|
|
|
17,118,480 |
|
|
|
— |
|
|
|
17,118,480 |
|
Net loss |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(837,973 |
) |
|
|
(837,973 |
) |
|
|
— |
|
|
|
(837,973 |
) |
Balance at June 30, 2020 |
|
|
8,596,189 |
|
|
$ |
85,962 |
|
|
$ |
39,351,139 |
|
|
$ |
(19,169,217 |
) |
|
$ |
20,267,884 |
|
|
$ |
— |
|
|
$ |
20,267,884 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December 31, 2019 |
|
|
1,157,890 |
|
|
$ |
11,579 |
|
|
$ |
21,932,387 |
|
|
$ |
(17,583,817 |
) |
|
$ |
4,360,149 |
|
|
$ |
— |
|
|
$ |
4,360,149 |
|
Stock-based compensation |
|
|
— |
|
|
|
— |
|
|
|
168,514 |
|
|
|
— |
|
|
|
168,514 |
|
|
|
— |
|
|
|
168,514 |
|
Conversion of restricted stock units to common stock |
|
|
24,672 |
|
|
|
246 |
|
|
|
(246 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Reverse stock split settlement |
|
|
(38 |
) |
|
|
— |
|
|
|
(122 |
) |
|
|
— |
|
|
|
(122 |
) |
|
|
— |
|
|
|
(122 |
) |
Conversion of debt exchange to common stock |
|
|
73,665 |
|
|
737 |
|
|
|
205,526 |
|
|
— |
|
|
|
206,263 |
|
|
— |
|
|
|
206,263 |
||||
Issuance of common stock, net of issuance costs |
|
|
7,340,000 |
|
|
|
73,400 |
|
|
|
17,045,080 |
|
|
|
— |
|
|
|
17,118,480 |
|
|
|
— |
|
|
|
17,118,480 |
|
Net loss |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,585,400 |
) |
|
|
(1,585,400 |
) |
|
|
— |
|
|
|
(1,585,400 |
) |
Balance at June 30, 2020 |
|
|
8,596,189 |
|
|
$ |
85,962 |
|
|
$ |
39,351,139 |
|
|
$ |
(19,169,217 |
) |
|
$ |
20,267,884 |
|
|
$ |
— |
|
|
$ |
20,267,884 |
|
SG BLOCKS, INC. AND SUBSIDIARIES |
||||||||
Condensed Consolidated Statements of Cash Flows |
||||||||
|
|
For the
Six Months Ended
|
|
|
For the
Six Months Ended
|
|
||
|
|
(Unaudited) |
|
|
(Unaudited) |
|
||
Cash flows from operating activities: |
|
|
|
|
|
|
||
Net loss |
|
$ |
(993,925 |
) |
|
$ |
(1,585,400 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
|
|
|
Depreciation expense |
|
|
198,398 |
|
|
|
1,848 |
|
Amortization of intangible assets |
|
|
82,230 |
|
|
|
72,561 |
|
Amortization of deferred license costs |
|
|
20,392 |
|
|
|
20,393 |
|
Bad debt expense |
|
|
161,202 |
|
|
— |
||
Interest income on long-term note receivable |
|
|
(18,596 |
) |
|
|
(11,096 |
) |
Stock-based compensation |
|
|
532,422 |
|
|
|
168,514 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
(245,307 |
) |
|
|
(483,067 |
) |
Contract assets |
|
|
(819,095 |
) |
|
|
94,185 |
|
Inventories |
|
|
(631,771 |
) |
|
|
— |
|
Prepaid expenses and other current assets |
|
|
16,800 |
|
|
(203,096 |
) |
|
Right of use asset |
|
|
204,840 |
|
|
|
— |
|
Accounts payable and accrued expenses |
|
|
1,958,175 |
|
|
(235,858 |
) |
|
Contract liabilities |
|
|
(985,672 |
) |
|
|
(20,106 |
) |
Due to affiliates |
|
|
(583,791 |
) |
|
|
— |
|
Lease liability |
|
|
(204,246 |
) |
|
|
— |
|
Net cash used in operating activities |
|
|
(1,307,944 |
) |
|
|
(2,181,122 |
) |
|
|
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
Advances in note receivable |
|
|
— |
|
|
(650,000 |
) |
|
Purchase of property, plant and equipment |
|
|
(4,692,918 |
) |
|
|
— |
|
Purchase of intangible asset |
|
|
(42,500 |
) |
|
|
— |
|
Payment on assumed liability of acquired assets |
|
|
(157,469 |
) |
|
|
— |
|
Investment in and advances to equity affiliates |
|
|
(3,350,329 |
) |
|
|
— |
|
Net cash used in investing activities |
|
|
(8,243,216 |
) |
|
|
(650,000 |
) |
|
|
|
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
Proceeds from conversion of warrants to common stock |
|
|
707,187 |
|
|
|
— |
|
Proceeds from public stock offering, net of issuance costs |
|
|
— |
|
|
|
17,118,480 |
|
Proceeds from long-term note payable |
|
|
— |
|
|
|
200,000 |
|
Distribution paid to noncontrolling interest |
|
|
(1,842,784 |
) |
|
|
— |
|
Settlement of common stock from reverse stock split |
|
|
— |
|
|
(122 |
) |
|
Net cash (used in) provided by financing activities |
|
|
(1,135,597 |
) |
|
|
17,318,358 |
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents |
|
|
(10,686,757 |
) |
|
|
14,487,236 |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents - beginning of period |
|
|
13,010,356 |
|
|
|
1,625,671 |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents - end of period |
|
$ |
2,323,599 |
|
|
$ |
16,112,907 |
|
|
|
|
|
|
|
|
|
|
Supplemental disclosure of non-cash operating activities: |
|
|
|
|
|
|
|
|
Non-cash conversion of long-term note payable to common stock |
|
$ |
— |
|
|
$ |
200,000 |
|
Non-cash conversion of accrued interest of long-term note payable to common stock |
|
|
— |
|
|
|
6,263 |
|
Total non-cash operating activities |
|
$ |
— |
|
|
$ |
206,263 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20210816005661/en/
FAQ
What were SG Blocks' financial results for the second quarter of 2021?
How many projects does SG Blocks have under contract as of June 30, 2021?
What is the expected cash flow outlook for SG Blocks?
What factors contributed to SG Blocks' record revenue in Q2 2021?
What are the current cash levels for SG Blocks?
