Safe and Green Development Corporation Reports 2024 Year-End Highlights

Rhea-AI Summary

Safe and Green Development (NASDAQ: SGD) has reported its 2024 year-end highlights, featuring the planned acquisition of Resource Group US Holdings (RSG). Based on preliminary unaudited results, RSG generated $18.75 million in revenue in 2024, with gross profit of $9.4 million and a reduced net loss of $936,000.

Key 2024 highlights include:

• First positive Adjusted EBITDA of $38,841 in Q4 2024
• Sale of St. Mary's property for $1.4 million
• Completion of first five homes in Sugar Phase I development in Texas
• Secured potential $10 million investment from Arena Investors

The company reported a full-year 2024 net loss of $8.9 million, with interest expense of $3.47 million. The RSG acquisition, expected to close by Q2 2025, aims to position SGD for long-term growth in engineered soils and composting sector.

Positive

• First positive Adjusted EBITDA achieved in Q4 2024 ($38,841)
• RSG's revenue growth from $17.5M (2023) to $18.75M (2024)
• RSG's net loss significantly reduced from $6.2M to $936,000
• Secured potential $10M investment from Arena Investors
• Successfully monetized St. Mary's property for $1.4M

Negative

• Full-year 2024 net loss of $8.9 million
• High interest expense of $3.47 million in 2024
• Negative full-year Adjusted EBITDA of $1.77 million
• RSG acquisition still pending audit completion and closing conditions

Insights

Financial Analyst

SGD's year-end report reveals a company in transition with mixed financial results. The most significant positive is SGD achieving its first quarter of positive Adjusted EBITDA ($38,841 in Q4 2024), though this non-GAAP metric requires careful interpretation as it adds back substantial costs. The company still posted a full-year net loss of $8.9 million with Q4 losses of $1.53 million, indicating ongoing profitability challenges.

The planned acquisition of Resource Group (RSG) represents a strategic pivot that could fundamentally reshape SGD's business model. RSG's preliminary unaudited 2024 financials show $18.75 million in revenue with $9.4 million gross profit, but still a $936,000 net loss. However, this marks significant improvement from RSG's 2023 loss of $6.2 million, suggesting operational progress.

The $1.4 million sale of the St. Mary's property demonstrates SGD's capital reallocation strategy, using proceeds to reduce high-interest debt. Additionally, securing up to $10 million in potential investment from Arena Investors provides liquidity runway, though subject to conditions.

The substantial difference between net loss and Adjusted EBITDA ($7.14 million variance for full-year 2024) warrants scrutiny. Key adjustments include $3.47 million in interest expense and $3.67 million in stock-based compensation and services – significant costs that impact cash position despite being excluded from the adjusted metric.

MIAMI, April 1, 2025 /PRNewswire/ -- Safe and Green Development Corporation (NASDAQ: SGD) ("SGD" or the "Company"), a real estate development and innovation company, is pleased to share its 2024 year-end highlights, anchored by the Company's strategic acquisition of Resource Group US Holdings LLC ("RSG"). The planned acquisition is expected to position the Company for long-term, recurring revenue growth in the engineered soils and composting sector. In addition to this strategic evolution, SGD achieved its first quarter of positive Adjusted EBITDA in Q4 2024 and made meaningful progress on several initiatives, including the monetization of non-core assets, advancement of its residential development projects, and taking steps to secure institutional investment to support future growth.

Operational Highlights for 2024

Transformational Acquisition of Resource Group (RSG):  RSG operates two key subsidiaries: RGUS, which holds the exclusive license to a patented composting and engineered soils machinery, and ZEI, a vertically integrated logistics and trucking business that supports internal operations and positions the platform for future expansion. Based on preliminary, unaudited results previously disclosed in the Company's press release dated March 21, 2025, RSG as a consolidated entity generated $17.5 million in revenue in 2023, with gross profit of $7.8 million and a net loss of $6.2 million and generated $18.75 million in revenue in 2024, with gross profit of $9.4 million and a significantly reduced net loss of $936,000. This acquisition reflects a calculated shift in SGD's long-term operating strategy—realigning the Company's business model around scalable, cash-generating assets that offer diversified revenue streams and long-term value creation for shareholders. The transaction is expected to close by Q2 2025, subject to customary closing conditions and the completion of RSG's audit. The preliminary and unaudited financial results presented in this press release do not present all necessary information for an understanding of RSG's financial condition as of December 31, 2024 and December 31, 2023. RSG's independent registered public accounting firm has not conducted an audit or review of and does not express an opinion or any other form of assurance with respect to, the preliminary unaudited revenue, gross profit and net income (loss) presented in this press release. It is possible that RSG or its independent registered public accounting firm may identify items that require adjustments to the preliminary estimates of revenue, gross profit and net income (loss) disclosed in this press release. RSG expects to complete its audited financial statements for the years ended December 31, 2024 and December 31, 2023 in the next few weeks.

Strategic Asset Monetization: As part of its capital reallocation strategy, SGD sold its St. Mary's property in Georgia to Pigmental Studios for $1.4 million. The sale enabled the Company to pay down high-interest debt and reinvest in initiatives aligned with its evolving business focus.

Development Progress in South Texas: While real estate development will become a complementary platform to the Company's core operating strategy upon consummation of the acquisition, SGD made notable construction progress in 2024. The Sugar Phase I development in Texas saw the completion of construction on its first five homes.

Institutional Investment & Market Compliance: To support its strategic growth, SGD secured up to $10 million in potential investment from Arena Investors (Arena Global), subject to certain conditions.

Safe and Green Development Q4 2024 Financial Highlights

	Full Year 2024	Q4 2024
Net Loss	$(8,908,475)	$(1,530,011)
Interest Expense	$3,474,344	$891,292
Depreciation & Amortization	$3,233	$1,434
EBITDA	$(5,430,898)	$(637,285)
Common Stock for Services & Debt Issuance	$1,496,180	$497,221
Stock-Based Compensation	$2,169,075	$178,905
Adjusted EBITDA	$(1,765,643)	$38,841

*Non-GAAP Financial Measures

This press release includes a presentation of Adjusted EBITDA, a non-GAAP financial measure. The Company defines Adjusted EBITDA as GAAP net loss adjusted to add back depreciation, amortization, interest expense, non-recurring expenses, and stock-based compensation. Adjusted EBITDA is not a measurement of financial performance under GAAP and should not be considered as an alternative to net income (loss) or any other performance measure derived in accordance with GAAP. Additionally, this non-GAAP measure may not be comparable to similarly titled measures reported by other companies. Management believes that providing Adjusted EBITDA, which excludes non-cash and non-recurring expenses, offers useful information to investors by providing an additional perspective on our results and underlying growth relative to prior and future periods. Management uses this non-GAAP financial measure in making financial, operating, and planning decisions and in evaluating the Company's performance. Non-GAAP financial information should not be viewed as a replacement for GAAP financial information.

About Safe and Green Development Corporation

Safe and Green Development Corporation is a real estate development company. Formed in 2021, it focuses primarily on the direct acquisition and indirect investment in properties nationally that will be further developed in the future into green single or multi-family projects. Additionally, a wholly owned subsidiary of SG DevCo, Majestic World Holdings LLC, is a prop-tech company that has created a real estate AI Platform the Company integrates to strategically increase the margins on homes sold by facilitating mortgage services and down payment assistance. MyVONIA Innovations LLC, a wholly owned subsidiary, is the owner of MyVONIA which is an AI-powered personal assistant designed to help simplify daily tasks and improve productivity for individuals and businesses.

Forward-Looking Statements

This communication may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934 as amended. All statements other than statements of historical fact are or may be deemed to be forward-looking statements. 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 and include all statements regarding acquiring RSG as the Company's future core operating business, positioning the Company for long-term, recurring revenue growth in the engineered soils and composting sector, securing institutional investment to support future growth, the estimated preliminary unaudited financials provided to SGD by RSG, realigning the Company's business model around scalable, cash-generating assets that offer diversified revenue streams and long-term value creation for shareholders, closing the RSG transaction by Q2 2025, the Sugar Phase I development in Texas generating approximately $1.2 million in revenue for the joint venture upon completion and sale by the end of Q1 2025, Arena Investors (Arena Global) providing the Company with up to $10 million in investment, expanding the Company's residential pipeline and proptech integration, accelerating joint venture developments in South Texas, executing on the RSG acquisition and delivering on the Company's mission of building scalable, sustainable communities powered by innovation. These forward-looking statements are based on certain assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions, and expected future developments, as well as other factors we believe are appropriate in the circumstances. Important factors that could cause actual results to differ materially from current expectations include, among others, RSG's ability to provide SGD with audited financials for the fiscal years ended December 31, 2023 and December 31, 2024 which reflect the estimated preliminary unaudited financials provided to SGD by RSG, the Company's ability to acquire the equity interests in RSG as planned, the Company's ability to expand the waste-to-value composting business using RSG's proprietary technology and increase cash flow, the Company's ability to generating approximately $1.2 million in revenue for the Sugar Phase I development joint venture and complete the sale by the end of Q1 2025, the Company's ability to secure institutional investment to support future growth, the Company's ability to expand its residential pipeline and accelerate joint venture developments in South Texas, the Company's ability to obtain the capital necessary to fund its activities, the Company's ability to monetize its real estate holdings, and other factors discussed in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, and its subsequent filings with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, and the Company undertakes no obligation to revise or update this communication to reflect events or circumstances after the date hereof.

For investor relations and media inquiries, please contact:
Barwicki Investor Relations
Andrew@Barwicki.com
516-662-9461

 

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SOURCE Safe and Green Development Corporation

FAQ

What were SGD's key financial results for full year 2024?

SGD reported a net loss of $8.9 million, interest expense of $3.47 million, and negative Adjusted EBITDA of $1.77 million for full year 2024.

How much revenue did RSG generate in 2024 according to preliminary results?

RSG generated $18.75 million in revenue in 2024, with $9.4 million in gross profit and a net loss of $936,000.

When is SGD expected to complete the RSG acquisition?

The RSG acquisition is expected to close by Q2 2025, subject to closing conditions and completion of RSG's audit.

What was the value of SGD's St. Mary's property sale in 2024?

SGD sold its St. Mary's property in Georgia to Pigmental Studios for $1.4 million.

What is the potential investment amount secured by SGD from Arena Investors?

SGD secured up to $10 million in potential investment from Arena Investors, subject to certain conditions.