Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2023 | May 11, 2023 | |
Cover [Abstract] | ||
Entity Registrant Name | SAFE & GREEN HOLDINGS CORP. | |
Entity Central Index Key | 0001023994 | |
Trading Symbol | SGBX | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2023 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2023 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, State or Province | FL | |
Entity Address, Address Line One | 990 Biscayne Blvd., | |
Entity Address, Address Line Two | #501, Office 12 | |
Entity Address, City or Town | Miami | |
Entity Address, Postal Zip Code | 33132 | |
City Area Code | (646) | |
Local Phone Number | 240-4235 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Security Exchange Name | NASDAQ | |
Entity Interactive Data Current | Yes | |
Entity Current Reporting Status | Yes | |
Entity File Number | 001-38037 | |
Entity Tax Identification Number | 95-4463937 | |
Entity Shell Company | false | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 14,302,587 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 1,452,501 | $ 582,776 |
Accounts receivable, net | 1,012,172 | 1,280,456 |
Contract assets | 900,717 | 36,384 |
Held for sale assets | 4,400,361 | 4,396,826 |
Inventories | 12,989 | 465,560 |
Prepaid expenses and other current assets | 1,266,523 | 744,211 |
Total current assets | 9,045,263 | 7,506,213 |
Property, plant and equipment, net | 6,044,259 | 5,608,903 |
Project development costs and other non-current assets | 565,809 | 483,546 |
Goodwill | 1,309,330 | 1,309,330 |
Right-of-use asset | 4,190,316 | 4,421,002 |
Long-term note receivable | 866,781 | 857,534 |
Intangible assets, net | 2,032,894 | 1,997,833 |
Deferred contract costs, net | 61,178 | 71,374 |
Investment in non-marketable securities | 700,000 | 700,000 |
Investment in and advances to equity affiliates | 3,624,945 | 3,599,945 |
Total Assets | 28,440,775 | 26,555,680 |
Current liabilities: | ||
Accounts payable and accrued expenses | 5,701,514 | 4,009,522 |
Contract liabilities | 344,129 | 437,271 |
Lease liability, current maturities | 1,112,102 | 1,225,394 |
Assumed liability | 5,795 | 5,795 |
Short term note payable, net | 5,396,276 | 2,648,300 |
Total current liabilities | 12,559,816 | 8,326,282 |
Long-term note payable | 750,000 | 750,000 |
Lease liability, net of current maturities | 2,809,321 | 3,039,836 |
Total liabilities | 16,119,137 | 12,116,118 |
Stockholders’ equity: | ||
Preferred stock, $0.00 par value, 5,405,010 shares authorized; none issued or outstanding | ||
Common stock, $0.01 par value, 25,000,000 shares authorized; 14,302,587 issued and 14,225,788 outstanding as of March 31, 2023 and 12,613,978 issued and 12,590,863 outstanding as of December 31, 2022 | 143,026 | 126,140 |
Additional paid-in capital | 57,605,024 | 56,173,977 |
Treasury stock, at cost - 23,115 shares | (49,680) | (49,680) |
Accumulated deficit | (44,947,708) | (41,428,268) |
Total Safe & Green Holdings Corp. stockholders’ equity | 12,750,662 | 14,822,169 |
Non-controlling interest | (429,024) | (382,607) |
Total stockholders’ equity | 12,321,638 | 14,439,562 |
Total Liabilities and Stockholders’ Equity | $ 28,440,775 | $ 26,555,680 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0 | $ 0 |
Preferred stock, shares authorized | 5,405,010 | 5,405,010 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common Stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, shares issued | 14,302,587 | 12,613,978 |
Common stock, shares outstanding | 14,225,788 | 12,590,863 |
Treasury Stock, Shares | 23,115 | 23,115 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenue: | ||
Revenue | $ 5,503,935 | $ 8,604,598 |
Cost of revenue: | ||
Cost of revenue | 5,573,407 | 6,118,163 |
Gross profit (loss) | (69,472) | 2,486,435 |
Operating expenses: | ||
Payroll and related expenses | 1,314,390 | 1,144,187 |
General and administrative expenses | 1,788,956 | 780,021 |
Marketing and business development expense | 87,251 | 143,335 |
Total | 3,190,597 | 2,067,543 |
Operating income (loss) | (3,260,069) | 418,892 |
Other income (expense): | ||
Interest expense | (287,372) | (48,849) |
Interest income | 9,362 | 12,783 |
Other income (expense) | 18,639 | 118,902 |
Total | (259,371) | 82,836 |
Loss before income taxes | (3,519,440) | 501,728 |
Income tax expense | ||
Net loss | (3,519,440) | 501,728 |
Add: net income (loss) attributable to noncontrolling interests | 1,218,905 | |
Net loss attributable to common stockholders of Safe & Green Holdings Corp. | $ (3,519,440) | $ (717,177) |
Net loss per share attributable to Safe & Green Holdings Corp. | ||
Basic | $ (0.25) | $ (0.06) |
Diluted | $ (0.25) | $ (0.06) |
Weighted average shares outstanding: | ||
Basic | 14,003,933 | 11,998,334 |
Diluted | 14,003,933 | 11,998,334 |
Construction services | ||
Revenue: | ||
Revenue | $ 5,503,935 | $ 1,668,384 |
Cost of revenue: | ||
Cost of revenue | 5,573,407 | 1,677,560 |
Engineering services | ||
Revenue: | ||
Revenue | 50,386 | |
Cost of revenue: | ||
Cost of revenue | 43,153 | |
Medical revenue | ||
Revenue: | ||
Revenue | 6,885,828 | |
Cost of revenue: | ||
Cost of revenue | $ 4,397,450 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) | Total | $0.01 Par Value Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Deficit | Safe & Green Holdings Corp. Stockholders' Equity | Noncontrolling interests |
Beginning Balance at Dec. 31, 2021 | $ 21,715,789 | $ 119,869 | $ 53,341,405 | $ (33,109,220) | $ 20,352,054 | $ 1,363,735 | |
Beginning Balance, Shares at Dec. 31, 2021 | 11,986,873 | ||||||
Stock-based compensation | 689,086 | $ 200 | 688,886 | 689,086 | |||
Stock-based compensation, Shares | 20,000 | ||||||
Noncontrolling interest distribution | (1,274,000) | (1,274,000) | |||||
Net loss | 501,728 | (717,177) | (717,177) | 1,218,905 | |||
Ending Balance at Mar. 31, 2022 | 21,632,603 | $ 120,069 | 54,030,291 | (33,826,397) | 20,323,963 | 1,308,640 | |
Ending Balance, Shares at Mar. 31, 2022 | 12,006,873 | ||||||
Beginning Balance at Dec. 31, 2022 | 14,439,562 | $ 126,140 | 56,173,977 | $ (49,680) | (41,428,268) | 14,822,169 | (382,607) |
Beginning Balance, Shares at Dec. 31, 2022 | 12,613,978 | ||||||
Stock-based compensation | 656,369 | 656,369 | 656,369 | ||||
Issuance of restricted common stock | 437,325 | $ 2,875 | 434,450 | 437,325 | |||
Issuance of restricted common stock, Shares | 287,512 | ||||||
Issuance of restricted stock units | $ 13,511 | (13,511) | |||||
Issuance of restricted stock units, Shares | 1,351,097 | ||||||
Issuance of warrants and restricted common stock | 354,239 | $ 500 | 353,739 | 354,239 | |||
Issuance of warrants and restricted common stock, Shares | 50,000 | ||||||
Noncontrolling interest distribution | (46,417) | (46,417) | |||||
Net loss | (3,519,440) | (3,519,440) | (3,519,440) | ||||
Ending Balance at Mar. 31, 2023 | $ 12,321,638 | $ 143,026 | $ 57,605,024 | $ (49,680) | $ (44,947,708) | $ 12,750,662 | $ (429,024) |
Ending Balance, Shares at Mar. 31, 2023 | 14,302,587 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Cash flows from operating activities: | |||
Net income (loss) | $ (3,519,440) | $ 501,728 | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation expense | 92,193 | 104,825 | |
Amortization of intangible assets | 46,119 | 41,823 | |
Amortization of deferred license costs | 10,196 | 10,196 | |
Amortization of debt issuance costs and debt discount | 169,040 | 8,628 | |
Amortization of right of use asset | 230,690 | 109,308 | |
Common stock issued for services | 437,325 | ||
Bad debt expense | 7,024 | ||
Interest income on long-term note receivable | (9,247) | (9,247) | |
Stock-based compensation | 656,369 | 649,090 | |
Loss on asset disposal | 241 | ||
Changes in operating assets and liabilities: | |||
Accounts receivable | 268,284 | 486,117 | |
Contract assets | (864,333) | (91,479) | |
Inventories | 452,571 | 219,483 | |
Prepaid expenses and other current assets | (522,314) | (128,592) | |
Intangible assets | (81,180) | ||
Accounts payable and accrued expenses | 1,691,992 | (2,052,971) | |
Contract liabilities | (93,142) | 3,768,133 | |
Due to affiliates | (264,451) | ||
Lease liability | (343,808) | (102,829) | |
Net cash used in operating activities | (1,378,685) | 3,257,027 | |
Cash flows from investing activities: | |||
Purchase of property, plant and equipment | (531,083) | (922,865) | |
Proceeds from sale of equipment | 760 | ||
Repayment of promissory note | (100,000) | ||
Project Development Costs | (82,265) | (338,885) | |
Investment in and advances to equity affiliates | (25,000) | ||
Investment in non-marketable securities | (500,000) | ||
Net cash used in investing activities | (638,348) | (1,860,990) | |
Cash flows from financing activities: | |||
Repayment of short term notes payable | (2,500,000) | ||
Proceeds from short-term notes payable and warrants | 5,433,175 | ||
Distribution paid to non-controlling interest | (46,417) | (1,274,000) | |
Net cash provided by (used in) financing activities | 2,886,758 | (1,274,000) | |
Net increase in cash and cash equivalents | 869,725 | 122,037 | |
Cash and cash equivalents - beginning of period | 582,776 | 13,024,381 | $ 13,024,381 |
Cash and cash equivalents - end of period | $ 1,452,501 | $ 13,146,418 | $ 582,776 |
Description of Business
Description of Business | 3 Months Ended |
Mar. 31, 2023 | |
Description of Business [Abstract] | |
Description of Business | 1. Description of Business Safe & Green Holdings Corp. (collectively with its subsidiaries, the “Company,” “we”, “us” or “our”) was previously known as SG Blocks, Inc. as well as CDSI Holdings, Inc., a Delaware corporation incorporated on December 29, 1993. On November 4, 2011, CDSI Merger Sub, Inc., the Company’s wholly-owned subsidiary, was merged with and into SG Building Blocks, Inc. (“SG Building,” formerly SG Blocks Inc.) (the “Merger”), with SG Building surviving the Merger and becoming a wholly-owned subsidiary of the Company. The Merger was a reverse merger that was accounted for as a recapitalization of SG Building, as SG Building was the accounting acquirer. Accordingly, the historical financial statements presented are the financial statements of SG Building. The Company operates in the following four segments: (i) construction; (ii) medical; (ii) real estate development; and (iv) environmental. The building products developed with the Company's proprietary technology and design and engineering expertise are generally stronger, more durable, environmentally sensitive, and erected in less time than traditional construction methods. The use of the SGBlocks building structure typically provides between four to six points towards the Leadership in Energy and Environmental Design (“LEED”) certification levels, including reduced site disturbance, resource reuse, recycled content, innovation in design and use of local and regional materials. Due to the ability of SGBlocks to satisfy such requirements, the Company believes the products produced utilizing its technology and expertise is a leader in environmentally sustainable construction. There are three core product offerings that utilize the Company's The Company also provides engineering and project management services related to the use and modification of Modules in construction. Construction During 2020, the Company formed, SG Echo, LLC, a wholly owned subsidiary of the Company. The Company acquired substantially all the assets of Echo DCL, a Texas limited liability company, except for Echo's real estate holdings for which the Company obtained a right of first refusal. Echo is a container/modular manufacturer based in Durant, Oklahoma specializing in the design and construction of permanent modular and temporary modular buildings and was one of the Company's key supply chain partners. Echo caters to the military, education, administration facilities, healthcare, government, commercial and residential customers. This acquisition has allowed the Company to expand its reach for the Modules and offer an opportunity to vertically integrate a large portion of the Company's cost of goods sold, as well as increase margins, productivity and efficiency in the areas of design, estimating, manufacturing and delivery and to become the manufacturer of the Company's core container and modular product offerings. T 19 Medical As of January 2021 and through the fourth quarter of 2021 19 Real Estate Development In addition, during 2021, the Company formed Safe and Green Development Corporation, formerly, SGB Development Corp. (“SG DevCorp”), which is wholly-owned by the Company. SG DevCorp was formed with the purpose of real property development utilizing the Company's technologies. SG DevCorp has a minority interest in Norman Berry II Owners LLC and JDI-Cumberland Inlet LLC as described further below. Environmental During 2022, SG Environmental Solutions Corp. (“SG Environmental”) was formed and is focused on biomedical waste removal and will utilize a patented technology that it licenses to shred and disinfect biomedical waste, rendering the waste disinfected, unrecognizable, and of no greater risk to the public health than residential household waste. |
Liquidity
Liquidity | 3 Months Ended |
Mar. 31, 2023 | |
Liquidity [Abstract] | |
Liquidity | 2. Liquidity As of March 31, 2023, the Company had cash and cash equivalents of $1,452,501 and a backlog of $1,306,849. See Note 11 discussion of constructi 2023 Within 1 year $ 1,306,849 Total Backlog $ 1,306,849 The Company has incurred losses since its inception, has negative working capital of approximately $3,515,000 and has negative operating cash flows, which has raised substantial doubt about its ability to continue as a going concern. The accompanying financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result from the outcome of the uncertainty concerning the Company’s ability to continue as a going concern. The Company intends to meet its capital needs from revenue generated from operations and by containing costs, entering into strategic alliances, as well as exploring other options, including the possibility of raising additional debt or equity capital as necessary. There is, however, no assurance the Company will be successful in meeting its capital requirements prior to becoming cash flow positive. The Company does not have any additional sources secured for future funding, and if it is unable to raise the necessary capital at the times it requires such funding, it may need to materially change its business plan, including delaying implementation of aspects of such business plan or curtailing or abandoning such business plan altogether. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 3. Summary of Significant Accounting Policies Basis of presentation and principals of consolidation – The accompanying unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and with the instructions to the Quarterly Report on Form 10-Q and Article 8 Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for annual financial statements. The condensed financial statements and notes should be read in conjunction with the consolidated financial statements and notes for the year ended December 31, 2022 included in the Company's Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the Securities and Exchange Commission on March 31, 2023. In the opinion of management, all adjustments, consisting of normal accruals, considered necessary for a fair presentation of the interim financial statements have been included. Results for the three months ended March 31, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. Recently adopted accounting pronouncements - New accounting pronouncements implemented by the Company are discussed below or in the related notes, where appropriate. Accounting estimates The Company's estimates used in these financial statements include, but are not limited to, revenue recognition, stock-based compensation, accounts receivable reserves, inventory valuations, goodwill, the valuation allowance related to the Company’s deferred tax assets, the carrying amount of intangible assets, right of use assets and the recoverability and useful lives of long-lived assets. Certain of the Company’s estimates could be affected by external conditions, including those unique to the Company and general economic conditions. It is reasonably possible that these external factors could have an effect on the Company’s estimates and could cause actual results to differ from those estimates. Operating cycle – The length of the Company’s contracts varies, but is typically between six twelve months twelve months one year Revenue recognition – The Company determines, at contract inception, whether it will transfer control of a promised good or service over time or at a point in time, regardless of the length of contract or other factors. The recognition of revenue aligns with the timing of when promised goods or services are transferred to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. To achieve this core principle, the Company applies the following steps in accordance with its revenue policy: ( 1 Identify the contract with a customer ( 2 Identify the performance obligations in the contract ( 3 Determine the transaction price ( 4 Allocate the transaction price to performance obligations in the contract ( 5 Recognize revenue as performance obligations are satisfied On certain contracts, the Company applies recognition of revenue over time, which is similar to the method the Company applied under previous guidance (i.e. percentage of completion). For product or equipment sales, the Company applies recognition of revenue when the customer obtains control over such goods, which is at a point in time. The Company entered into a joint venture agreement with Clarity Lab Solutions, LLC (“Clarity Labs”) (the “JV”) in the fourth quarter of 2021 . Revenue from the activities of the JV is related to clinical testing services and is recognized when services have been rendered, which is at a point in time. Included in the consideration the Company expected to be entitled to receive, the Company estimates its contractual allowances, payer denials and price concessions. In addition, the Company formed Chicago Airport Testing, LLC which collected rental revenue from subleasing to a consortium of government entities assisting in COVID-19 testing. to activities through these two joint ventures, which is included in medical revenue on the accompanying consolidated statements of operations. Due to the ongoing lower affects of COVID-19 restrictions, the JV began to wind down during the fourth quarter of 2022. Disaggregation of Revenues The Company’s revenues for the three, months ended March 31, 2022 wase principally derived from construction and engineering contracts related to Modules, and medical revenue derived from lab testing and test kit sales The Company's contracts are with customers in various industries. Revenue recognized at a point in time and recognized over time were Revenue recognized at a point in time and recognized over time were $ 6,885,828 and $1,718,770, respectively, for the three months ending March 31, 2022 . The following tables provide further disaggregation of the Company’s Three Months Ended March 31, Revenue by Customer Type 2023 2022 Construction and Engineering Services: Government $ — — % $ 39 — % Hotel 33,676 1 % 897,244 10 % Multi-Family (includes Single Family) — — % 77,626 1 % Office 5,470,259 99 % 728,875 8 % Retail — — % 5,344 1 % Special Use — — % 9,642 — % Subtotal 5,503,935 100 % 1,718,770 20 % Medical Revenue: Medical (lab testing, kit sales and equipment) — — % 6,885,828 80 % Total revenue by customer type $ 5,503,935 100 % $ 8,604,598 100 % Contract Assets and Contract Liabilities Accounts receivable are recognized in the period when the Company’s right to consideration is unconditional. Accounts receivable are recognized net of an allowance for credit losses. A considerable amount of judgment is required in assessing the likelihood of realization of receivables. The timing of revenue recognition may differ from the timing of invoicing to customers. Contract assets include unbilled amounts from long-term construction services when revenue recognized under the cost-to-cost measure of progress exceeds the amounts invoiced to customers, as the amounts cannot be billed under the terms of our contracts. Such amounts are recoverable from customers based upon various measures of performance, including achievement of certain milestones, completion of specified units or completion of a contract. Contract assets are generally classified as current within the condensed consolidated balance sheets. Contract liabilities from construction and engineering contracts occur when amounts invoiced to customers exceed revenues recognized under the cost-to-cost measure of progress. Contract liabilities additionally include advanced payments from customers on certain contracts. Contract liabilities decrease as the Company recognizes revenue from the satisfaction of the related performance obligation. Contract liabilities are generally classified as current within the condensed consolidated balance sheet. A lthough Deferred Contract Costs - Prior to entering into the Exclusive License Agreement (“ELA”) in 2019, the Company was subject to an agreement to construct and develop a certain property (“Original Agreement”), which now was subject to the ELA. Because of this, the Company is no longer obliged to its Original Agreement. Upon entering the ELA, the Company had an outstanding accounts receivable balance of $306,143 which was forfeited and recognized this amount as deferred contract costs. This amount was offset by $102,217 , which was reimbursement from the licensee for project costs on this project. The Company incurred total deferred contract costs of $203,926. The Company considered this amount an incremental cost of obtaining that ELA, because the Company expected to recover those costs through future royalty payments. The Company initially planned to amortize the asset over sixty months , which is the initial term of the ELA because the asset relates to the services transferred to the customer during the contract term. As of . During the three months ended March 31, 2023 and 2022, amortization expense relating to the deferred contract costs amounted to $10,196 and $10,196, respectively, and is included in general and administrative expenses on the accompanying consolidated statements of operations. T he ELA was terminated on June 15, 2021 but the Company expects to recover the deferred contract costs from the Assignment of Limited Rights Under Membership Interest Redemption Agreement, dated June 15, 2021. Bu - The Company accounts for business acquisitions using the acquisition method of accounting in accordance with ASC 805 Variable Interest Entities – The Company accounts for certain legal entities as variable interest entities (“VIE"). When evaluating a VIE for consolidation, the Company must determine whether or not there is a variable interest in the entity. Variable interests are investments or other interests that absorb portions of an entity’s expected losses or receive portions of the entity’s expected returns. If it is determined that the Company does not have a variable interest in the VIE, no further analysis is required and the VIE is not consolidated. If the Company holds a variable interest in a VIE, the Company consolidates the VIE when there is a controlling financial interest in the VIE and therefore are deemed to be the primary beneficiary. The Company is determined to have a controlling financial interest in a VIE when it has both the power to direct the activities of the VIE that most significantly impact the VIE economic performance and the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to that VIE. This determination is evaluated periodically as facts and circumstances change. On August 27, 2020 the Company entered into a joint venture agreement with Clarity Lab Solutions, LLC (“Clarity Labs”) (the “JV”). In consideration and subject to Clarity Lab’s services and commitments and provided the agreement remains valid and in force, and is not terminated, the Company agreed to issue 200,000 restricted shares of the Company’s common stock over a defined vesting period starting in December 1, 2020. The restricted shares of the Company common stock were not issued to Clarity Labs as certain capital commitments were not met. The Company has determined it is the primary beneficiary of Clarity Mobile Venture and has thus consolidated the activities in its consolidated financial statements. Due to the ongoing lower affects of COVID-19 restrictions, the JV was wound down during the fourth quarter of 2022. On January 18, 2021 the Company entered into an operating agreement to form CAT. The purpose of CAT is to market , sell, distribute, lease and otherwise commercially exploit certain products and services in the COVID- 19 The Company has determined it is the primary beneficiary of CAT and has thus consolidated the activities in its consolidated financial statements. Investment Entities – On May 31, 2021, the Company's subsidiary SG DevCorp agreed to contribute $600,000 to acquire a 50% membership interest in Norman Berry II Owner LLC (“Norman Berry”). The Company contributed $350,329 and $114,433 of the initial $600,000 in the second quarter and third quarter of 2021 respectively, with the remaining $135,238 The Company will use the equity method to report the activities as an investment in its consolidated financial statements. On June 24, 2021, the Company's subsidiary, SG DevCorp, entered into an operating agreement with Jacoby Development for a 10% non-dilutable equity interest for JDI-Cumberland Inlet, LLC (“Cumberland”). The Company contributed $3,000,000 for its 10% equity interest. During the three months ended March 31, 2023, the Company contributed an additional $25,000. During the three months ended March 31, 2023, Norman Berry and Cumberland did not have any material earnings or losses as the investments are in development. In addition, management believes there was no impairment as of March 31, 2023. The approximate combined financial position of the Company’s equity affiliates are summarized below as of March 31, 2023 and December 31, 2022: Condensed balance sheet information: March 31,2023 December 31,2022 (Unaudited) (Unaudited) Total assets $ 37,500,000 $ 37,500,000 Total liabilities $ 7,100,000 $ 7,100,000 Members’ equity $ 30,400,000 $ 30,400,000 Cash and cash equivalents – The Company considers cash and cash equivalents to include all short-term, highly liquid investments that are readily convertible to known amounts of cash and have original maturities of three months or less upon acquisition. Cash and cash equivalents totaled $ 1,452,501 and $ as of March 31, 2023, Short-term investment – The Company classifies investments consisting of a certificate of deposit with a maturity greater than months but less than year as short-term investment. The Company had no short-term investment as of March 31, 2023 or December 31, , respectively. Accounts receivable and allowance for credit losses – Accounts receivable are receivables generated from sales to customers and progress billings on performance type contracts. Amounts included in accounts receivable are deemed to be collectible within the Company’s operating cycle. The Company recognizes accounts receivable at invoiced amounts. The Company adopted ASC 326, Current Expected Credit Losses, on January 1, 2023, which requires the measurement and recognition of expected credit losses using a current expected credit loss model. The allowance for credit losses on expected future uncollectible accounts receivable is estimated considering forecasts of future economic conditions in addition to information about past events and current conditions. The allowance for credit losses reflects the Company's best estimate of expected losses inherent in the accounts receivable balances. Management provides an allowance for credit losses based on the Company’s historical losses, specific customer circumstances, and general economic conditions. Periodically, management reviews accounts receivable and adjusts the allowance based on current circumstances and charges off uncollectible receivables when all attempts to collect have been exhausted and the prospects for recovery are remote. Recoveries are recognized when they are received. Actual collection losses may differ from our estimates and could be material to our consolidated financial position, results of operations, and cash flows. Inventory – Raw construction materials (primarily shipping containers and fabrication materials) are valued at the lower of cost (first-in, first-out method) or net realizable value. Finished goods and work-in-process inventories are valued at the lower of cost or net realizable value, using the specific identification method. Medical equipment and COVID- test and testing supplies are valued at the lower of cost, (first-in, first-out method) or net realizable value. As of March 31, 2023 and December 31, 2022 there was inventory of and $465,560, respectively, for construction materials. Goodwill – The Company performs its impairment test of goodwill at the reporting unit level each fiscal year, or more frequently if events or circumstances change that would more likely tha n not reduce the fair value of its reporting unit below its carrying values. The Company performs a goodwill impairment test by comparing the fair value of the reporting unit with its carrying value and recognizes an impairment charge for the amount by which the carrying value exceeds the fair value, not to exceed the total amount of goodwill . The amount by which the carrying value of the goodwill exceeds its implied fair value, if any, is recognized as an impairment loss. Intangible assets – Intangible assets consist of $ 2,766,000 97,164 2022 The amortization expense for the 46,119 41,823 For the year ending December 31,: 2023 (remaining) $ 142,605 2024 190,271 2025 186,854 2026 169,519 2027 165,841 Thereafter 1,177,804 $ 2,032,894 Property, plant and equipment – Property, plant and equipment is stated at cost. Depreciation is computed using the straight-line method over the estimated lives of each asset. Estimated useful lives for significant classes of assets are as follows: computer and software 3 to 5 years, furniture and other equipment 5 to 7 years, automobiles 2 to 5 years, buildings held for lease 5 to 7 years, and equipment o 29 Held For Sale Assets Convertible instruments – The Company bifurcates conversion options from their host instruments and accounts for them as free standing derivative financial instruments according to certain criteria. The criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under otherwise applicable generally accepted accounting principles with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument. Common stock purchase warrants and other derivative financial instruments – The Company classifies as equity any contracts that (i) require physical settlement or net-share settlement or (ii) provides a choice of net-cash settlement or settlement in the Company’s own shares (physical settlement or net-share settlement) providing that such contracts are indexed to the Company’s own stock. The Company classifies as assets or liabilities any contracts that (i) require net-cash settlement (including a requirement to net cash settle the contract if any event occurs and if that event is outside the Company’s control) or (ii) gives the counterparty a choice of net-cash settlement or settlement shares (physical settlement or net-cash settlement). The Company assesses classification of common stock purchase warrants and other free standing derivatives at each reporting date to determine whether a change in classification between assets and liabilities or equity is required. Fair value measurements – Financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities are carried at cost, which the Company believes approximates fair value due to the short-term nature of these instruments. The Company measures the fair value of financial assets and liabilities based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. The Company uses three levels of inputs that may be used to measure fair value: Level 1 Quoted prices in active markets for identical assets or liabilities. Level 2 Quoted prices for similar assets and liabilities in active markets or inputs that are observable. Level 3 Inputs that are unobservable (for example, cash flow modeling inputs based on assumptions). Transfer into and transfers out of the hierarchy levels are recognized as if they had taken place at the end of the reporting period. Share-based payments – The Company measures the cost of services received in exchange for an award of equity instruments based on the fair value of the award. For employees and directors, including non-employee directors, the fair value of a stock option award is measured on the grant date. The fair value amount is then recognized over the period services are required to be provided in exchange for the award, usually the vesting period. The Company recognizes stock-based compensation expense on a graded-vesting basis over the requisite service period for each separately vesting tranche of each award. Stock-based compensation expense to employees and all directors are reported within payroll and related expenses in the consolidated statements of operations. Stock-based compensation expense to non-employees is reported within marketing and business development expense in the condensed consolidated statements of operations. Income taxes The Company accounts for income taxes utilizing the asset and liability approach. Under this approach, deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. The provision for income taxes generally represents income taxes paid or payable for the current year plus the change in deferred taxes during the year. Deferred taxes result from the differences between the financial and tax bases of the Company’s assets and liabilities and are adjusted for changes in tax rates and tax laws when changes are enacted. The calculation of tax liabilities involves dealing with uncertainties in the application of complex tax regulations. The Company recognizes liabilities for anticipated tax audit issues based on the Company’s estimate of Concentrations of credit risk – Financial instruments, that potentially subject the Company to concentration of credit risk, consist principally of cash and cash equivalents. The Company places its cash with high credit quality institutions. At times, such amounts may be in excess of the FDIC insurance limits. The Company has not experienced any losses in such account and believes that it is not exposed to any significant credit risk on the account. With respect to receivables, concentrations of credit risk are limited to a few customers in the construction industry. The Company performs ongoing credit evaluations of its customers’ financial condition and, generally, requires no collateral from its customers other than normal lien rights. At March 31, 2023 and December 31, 2022, 80% and 80%, respectively, of the Company’s gross accounts receivable were due from two Revenue relating to one and two customers represented approximately 95% and 90% of the Company's total revenue for the three months ended March 31, 2023 and 2022 , respectively. Cost of revenue relating to two vendors represented approximately 28% of the Company’s total cost of revenue for the three months ended March 31, 2022. For the three months ended March 31 The Company believes it has access to alternative suppliers, with limited disruption to the business, should circumstances change with its existing suppliers. |
Accounts Receivable
Accounts Receivable | 3 Months Ended |
Mar. 31, 2023 | |
Accounts Receivable [Abstract] | |
Accounts Receivable | 4. Accounts Receivable At March 31, 2023 and December 31, 2022 2023 2022 Billed: Construction services $ 1,157,918 $ 1,310,456 Other receivable — 115,746 Total gross receivables 1,157,918 1,426,202 Less: allowance for credit losses (145,746 ) (145,746 ) Total net receivables $ 1,012,172 $ 1,280,456 Receivables are |
Contract Assets and Contract Li
Contract Assets and Contract Liabilities | 3 Months Ended |
Mar. 31, 2023 | |
Contract Assets and Contract Liabilities [Abstract] | |
Contract Assets and Contract Liabilities | 5. Contract Assets and Contract Liabilities Costs and estimated earnings on uncompleted contracts, which represent contract assets and contract liabilities, consisted of the following at March 31, 2023 and December 31, 2022 2023 2022 Costs incurred on uncompleted contracts $ 7,606,868 $ 13,730,177 Provision for loss on uncompleted contracts — — Estimated earnings to date on uncompleted contracts 657,694 (2,160,085 ) Gross contract assets 8,264,562 11,570,092 Less: billings to date (7,707,974 ) (11,970,979 ) Net contract liabilities on uncompleted contracts $ 556,588 $ (400,887 ) The above amounts are included in the accompanying condensed consolidated balance sheets under the f ollowing captions at March 31, 2023 December 31, 2022 2023 2022 Contract assets $ 900,717 $ 36,384 Contract liabilities (344,129 ) (437,271 ) Net contract liabilities $ 556,588 $ (400,887 ) Although management believes it has established adequate procedures for estimating costs to complete on open contracts, it is at least reasonably possible that additional significant costs could occur on contracts prior to completion. The Company peri odically evaluates and revises its estimates and makes adjustments when they are considered necessary. |
Property, plant and equipment
Property, plant and equipment | 3 Months Ended |
Mar. 31, 2023 | |
Property, plant and equipment [Abstract] | |
Property, plant and equipment | 6. Property, plant and equipment Property, plant and equipment are stated at cost less accumulated depreciation and amortization and depreciated using the straight-line method over their useful lives. At March 31, 2023 and December 31, 2022, the Company’s property, plant and equipment, net consisted of the following: 2023 2022 Computer equipment and software $ 94,530 $ 94,530 Furniture and other equipment 271,798 271,798 Leasehold improvements 17,280 17,280 Equipment and machinery 943,464 943,464 Automobiles 4,638 4,638 Building held for leases 196,416 196,416 Laboratory and temporary units 1,364,748 1,364,748 Land 1,190,655 1,190,655 Construction in progress 2,771,649 2,244,100 Property, plant and equipment 6,855,178 6,327,629 Less: accumulated depreciation (810,919 ) (718,726 ) Property, plant and equipment, net $ 6,044,259 $ 5,608,903 Depreciation expense for the three months ended March 31, 2023 and 2022 amounted to $92,193 and $104,825 respectively. |
Notes Receivable
Notes Receivable | 3 Months Ended |
Mar. 31, 2023 | |
Notes Receivable [Abstract] | |
Notes Receivable | 7. Notes Receivable On January 21, 2020, CPF GP 2019-1 LLC (“CPF GP”) issued to the Company a promissory note in the principal amount of $400,000 (the “Company Note”) and issued to Paul Galvin, the Company’s Chairman and CEO, a promissory note in the principal amount of $100,000 (the “Galvin Note”). The transaction closed on January 22, 2021, on which date the Company loaned CPF GP 2019-1 LLC $400,000 and Mr. Galvin personally loaned CPF GP $100,000 on behalf of the Company. five In April 2020, CPF GP issued to the Company a promissory note in the principal amount of $250,000 (the “Company Note 2”). The transaction closed on April 15, 2021, on which date the Company loaned CPF GP 2019-1 LLC $250,000. The Company Note was issued pursuant to that certain Loan Agreement and Promissory Note, dated October 3, 2019 (the “Loan Agreement 2”), as amended on October 15, 2019 and November 7, 2019 by and between the CPF GP and the Company, and bear interest at five percent (5%) per annum, payable, together with the unpaid principal amount of the promissory notes, on the earlier of the July 31, 2023 maturity date or upon the liquidation, redemption sale or issuance of a dividend upon the LLC interests in CPF MF 2019-1 LLC, a Texas limited liability company of which CPF GP is the general partner. During the year ended December 31, 2022, the Galvin Note was assigned to the Company and the principal amount of $100,000 was paid to Mr. Galvin. The Company has a promissory note in the principal amount of $100,000 (the "Company Note 3") and the assignment occurred in January 2022. The promissory notes are unaffected by the Settlement and Mutual Release Agreement and remain in effect and outstanding in accordance with the terms of the notes evidencing such loans. |
Notes Payable
Notes Payable | 3 Months Ended |
Mar. 31, 2023 | |
Notes Payable [Abstract] | |
Notes Payable | 8. Notes Payable On July 14, 2021, SG DevCorp, a subsidiary of the Company, issued a Real Estate Lien Note, in the principal amount of $ (the “Short-Term Note”), secured by a Deed of Trust, dated July 14, 2021 (the “Deed of Trust”), on the Company's + acre Lake Travis project site in Lago Vista, Texas and a related Assignment of Leases and Rents, dated July 8, 2021 (“Assignment of Rents”), for net loan proceeds of approximately $1,948,234 after fees. The Short-Term Note has a term of one ( ) year, provides for payments of interest only at a rate of twelve percent ( %) per annum and may be prepaid without penalty commencing nine (9) months after its issuance date. If the Short-Term Note is prepaid prior to nine (9) months after its issuance date, a % prepayment penalty is due. The Company capitalized $20,000 in interest charges and $4,134 in debt issuance costs during the year ended December 31, 2022 related to the Lago Vista project in accordance with ASC 835-20. On July 14, 2022, the Company entered into a renewal and extension of the Short-Term Note, with a maturity date of January 14, 2023 and all other terms remaining the same. On September 8,2022, the Company entered into a Second Real Estate Lien Note, in the principal amount of $500,000, with similar terms to the Short-Term Note (“Second Short-Term Note”). The Second Short-Term Note had a maturity date of January 14, 2023. During January 2023, the Short-Term Note and Second Short-Term Note were extended with a maturity date of February 1, 2024. On March 31, 2023, LV Peninsula Holding LLC (“LV Peninsula”), a Texas limited liability company and wholly owned subsidiary of SG DevCorp, pursuant to a Loan Agreement, dated March 30, 2023 (the “Loan Agreement”), issued a promissory note, in the principal amount of $5,000,000 (the “LV Note”), secured by a Deed of Trust and Security Agreement, dated March 30, 2023 (the “Deed of Trust”) on the Lake Travis project site in Lago Vista, Texas, a related Assignment of Contract Rights, dated March 30, 2023 (“Assignment of Rights”), on our project site in Lago Vista, Texas and McLean site in Durant, Oklahoma and a Mortgage, dated March 30, 2023 (“Mortgage”), on our site in Durant, Oklahoma . The proceeds of the LV Note were used to pay off the Short-Term Note and Second Short-Term Note. The LV Note requires monthly installments of interest only, is due on April 1, 2024 and bears interest at the prime rate as published in the Wall Street Journal (currently 8.0%) plus five and 50/100 percent (5.50%), currently equaling 13.5%; provided that in no event will the interest rate be less than a floor rate of 13.5%. The LV Peninsula obligations under the LV Note have been guaranteed by SG pursuant to a Guaranty, dated March 30, 2023 (the “Guaranty”), and may be prepaid by LV Peninsula at any time without interest or penalty. The Company incurred $406,825 of debt issuance costs and remitted $675,000 in prepaid interest in connection with the LV Note. On October 29, 2021, SG Echo, a subsidiary of the Company, entered into a Loan Agreement (“Loan Agreement”) with the Durant Industrial Authority (the “Authority”) pursuant to which it received $750,000 to be used for renovation improvements related to the Company's second manufacturing facility and issued to the Authority a non-interest bearing Forgivable Promissory Note in the principal amount of $750,000 (the “Forgivable Note”). The Forgivable Note is due on April 29, 2029 and guaranteed by the Company, provided, if no event of default has occurred under the Forgivable Note or Loan Agreement, one-third (1/3) of the balance of the Forgivable Note will be forgiven on April 29, 2027, one-half (1/2) of the balance of the Forgivable Note will be forgiven on April 29, 2028, and the remainder of the balance of the Forgivable Note will be forgiven on April 29, 2029. The Loan Agreement includes a covenant by SG Echo to employ a minimum of 75 full-time employees in Durant Oklahoma and pay them no less than 1.5 times the federal minimum wage, and provides SG Echo 24 months to comply with the provision. In August 2022, SG DevCorp entered into a $148,300 promissory note (“2022 Note”) to purchase property. The 2022 Note bears annual interest at the rate of 9.75%, with interest payments due monthly until its maturity on September 1, 2023.The 2022 Note is secured by the underlying property. On February 7, 2023, the Company closed a private placement offering (the “Offering”) of One Million One Hundred Thousand Dollars ($1,100,000.00) in principal amount of the Company’s 8% convertible debenture (the “Debenture”) and a warrant (the “Peak Warrant”) to purchase up to Five Hundred Thousand (500,000) shares of the Company’s common stock, to Peak One Opportunity Fund, L.P. (“Peak One”). Pursuant to a Securities Purchase Agreement, dated February 7, 2023 (the “Purchase Agreement”), the Debenture was sold to Peak One for a purchase price of $1,000,000, representing an original issue discount of ten percent (10%). In connection with the Offering the Company paid $15,000 as a non-accountable fee to Peak One to cover its accounting fees, legal fees and other transactional costs incurred in connection with the transactions contemplated by the Purchase Agreement and issued 50,000 shares of its restricted common stock (the “Commitment Shares”) to Peak One Investments, LLC (“Investments”), the general partner of Peak One. The Debenture matures twelve months from its date of issuance and bears interest at a rate of 8% per annum payable on the maturity date. The Debenture is convertible, at the option of the holder, at any time, into such number of shares of common stock of the Company equal to the principal amount of the Debenture plus all accrued and unpaid interest at a conversion price equal to $1.50 (the “Conversion Price”), subject to adjustment for any stock splits, stock dividends, recapitalizations and similar events and in the event the Company, at any time while the Debenture is outstanding, issues, sells or grants any option to purchase, or sells or grants any right to reprice, or otherwise disposes of, or issues common stock or other securities convertible into, exercisable for, or otherwise entitle any person the right to acquire, shares of common stock, other than with respect to an Exempt Issuance (as defined in the Debenture), at an effective price per share that is lower than the then Conversion Price. In the event of any such anti-dilutive event, the Conversion Price will be reduced at the option of the holder to such lower effective price of the dilutive event, subject to a floor price of $0.40 per share, unless and until the Company obtains shareholder approval for any issuance below such floor price. The Debenture is redeemable by the Company at a redemption price equal to 110% of the sum of the principal amount to be redeemed plus accrued interest, if any. So long as the Debenture is outstanding, upon any issuance by the Company of any security with any term more favorable to the holder of such security or with a term in favor of the holder of such security that was not similarly provided to the holder of the Debenture, then the Company shall notify the holder of such additional or more favorable term and such term, at holder’s option, will become a part of the transaction documents with the holder. In no event will the holder be entitled to convert any portion of the Debenture in excess of that portion which would result in beneficial ownership by the holder and its affiliates of more than 4.99% of the outstanding shares of common stock, unless the holder delivers to the Company written notice at least sixty-one (61) days prior to the effective date of such notice that the provision be adjusted to 9.99%. While the Debenture is outstanding, if the Company receives cash proceeds of more than $1,000,000 (“Minimum Threshold”) in the aggregate from any source or series of related or unrelated sources, the Company shall, within two (2) business days of Company’s receipt of such proceeds, inform the holder of such receipt, following which the holder shall have the right in its sole discretion to require the Company to immediately apply up to 50% of all proceeds received by the Company (from any source except with respect to proceeds from the issuance of equity or debt to officers and directors of the Company) after the Minimum Threshold is reached to repay the outstanding amounts owed under the Debenture. Upon the occurrence of certain events of default specified in the Debenture, such as a failure to honor a conversion request, failure to maintain the Company’s listing, the Company’s failure to comply with its obligations under Securities Exchange Act of 1934, as amended, a breach of the Company’s representations or covenants, or the failure obtain shareholder approval within 60 days after the Exchange Cap (as defined) is reached, as amended, 110% of all amounts owed to holder under the Debenture, together with default interest at 18% per annum if any, shall then become due and payable. The Peak Warrant expires five years from its date of issuance. The Peak Warrant is exercisable, at the option of the holder, at any time, for up to 500,000 of shares of common stock of the Company at an exercise price equal to $2.25 (the “Exercise Price”), subject to adjustment for any stock splits, stock dividends, recapitalizations and similar events and in the event the Company, at any time while the Peak Warrant is outstanding, issues, sells or grants any option to purchase, or sells or grants any right to reprice, or otherwise disposes of, or issues common stock or other securities convertible into, exercisable for, or otherwise entitle any person the right to acquire, shares of common stock, other than with respect to an Exempt Issuance, at an effective price per share that is lower than the then Exercise Price. In the event of any such anti-dilutive event, the Exercise Price will be reduced at the option of the holder to such lower effective price of the dilutive event, subject to a floor price of $0.40 per share, unless and until the Company obtains shareholder approval for any issuance below such floor price. The number of shares of the Company’s common stock that may be issued upon conversion of the Debenture and exercise of the Peak Warrant, and inclusive of the Commitment Shares and any shares issuable under and in respect of the equity purchase agreement, dated February 7, 2023 between the Company and Peak One described below, is subject to an exchange cap (the “Exchange Cap”) of 19.99% of the outstanding number of shares of the Corporation’s common stock on the closing date, 2,760,675 shares, unless shareholder approval to exceed the Exchange Cap is approved. The Company incurred $80,000 in debt issuance costs in connection with the Debenture. In addition, the initial fair value of the Peak Warrant amounted to $278,239 and the fair value of the restricted shares amounted to $76,000, both of which have been recorded as a debt discount and will be amortized over the effective rate method. For the three months ended March 31, 2023, the Company recognized amortization of debt issuance costs and debt discount of $13,333 and $75,706, respectively. As of March 31, 2023 the unamortized debt issuance costs and debt discount amounted to $66,667 and $704,167, respectively. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Leases | 9. Leases The Company leases an office, a manufacturing The leases have remaining lease terms ranging from one year to ten years. Supplemental balance sheet information related to leases is as follows: Balance Sheet Location March 31, 2023 Operating Leases Right-of-use assets, net $ 2,396,732 Current liabilities Lease liability, current maturities 415,772 Non-current liabilities Lease liability, net of current maturities 2,004,630 Total operating lease liabilities $ 2,420,402 Finance Leases Right-of-use assets $ 1,793,584 Current liabilities Lease liability, current maturities 696,330 Non-current liabilities Lease liability, net of current maturities 804,691 Total finance lease liabilities $ 1,501,021 Weighted Average Remaining Lease Term Operating leases 6.80 years Finance leases 1.75 years Weighted Average Discount Rate Operating leases 3% Finance leases 3% As the leases do not provide an implicit rate, the Company used an incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments, which is reflective of the specific term of the leases and economic environment of each geographic region. Anticipated future lease costs, which are based in part on certain assumptions to approximate minimum annual rental commitments under non-cancelable leases, are as follows: Year Ending December 31: Operating Financing Total 2023 (remaining) $ 389,803 $ 608,122 $ 997,925 2024 523,722 801,869 1,325,591 2025 446,349 136,234 582,583 2026 207,379 — 207,379 2027 1,119,901 — 1,119,901 Thereafter — — — Total lease payments 2,687,154 1,546,225 4,233,379 Less: Imputed interest 266,753 45,204 311,957 Present value of lease liabilities $ 2,420,401 $ 1,501,021 $ 3,921,422 |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 3 Months Ended |
Mar. 31, 2023 | |
Net Income (Loss) Per Share [Abstract] | |
Net Income (Loss) Per Share | 10. Net Income (Loss) Per Share Basic net income (loss) per share is computed by dividing the net income (loss) for the period by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is computed by dividing the net income (loss) for the period by the weighted average number of common and potentially dilutive common shares outstanding during the period. Potentially dilutive common shares consist of the common shares issuable upon the exercise of stock options and warrants. Potentially dilutive common shares are excluded from the calculation if their effect is antidilutive. At March 31, 2023, there were restricted stock units, options and warrants of 1,190,935 2,525,020 outstanding that could potentially dilute future net income per share . Because the Company had a net loss as of March 31, 2023, it is prohibited from including potential common shares in the computation of diluted per share amounts. Accordingly, the Company has used the same number of shares outstanding to calculate both the basic and diluted loss per share. March 31, 2022 2,245,186, 36,436 and 2,025,520 shares of common stock, respectively, outstanding that could potentially dilute future net income per share. |
Construction Backlog
Construction Backlog | 3 Months Ended |
Mar. 31, 2023 | |
Construction Backlog [Abstract] | |
Construction Backlog | 11. Construction Backlog The following represents the backlog of signed construction and engineering contracts in existence at March 31, 2023 and December 31, 2022, which represents the amount of revenue the Company expects to realize from work to be performed on uncompleted contracts in progress and from contractual agreements in effect at March 31, 2023 and December 31, 2022, respectively, on which work has not yet begun: 2023 2022 Balance - beginning of period $ 6,810,762 $ 3,217,909 New contracts and change orders during the period — 13,803,733 Adjustments and cancellations, net 22 1,086,301 Subtotal 6,810,784 18,107,943 Less: contract revenue earned during the period (5,503,935 ) (11,297,181 ) Balance - end of period $ 1,306,849 $ 6,810,762 The Company’s remaining backlog as of represents the remaining transaction price of firm contracts for which work has not been performed and excludes unexercised contract options. The Company expects to satisfy its backlog which represents the remaining unsatisfied performance obligation on contracts as of March 31, 2023 over the following period: 2023 Within 1 year $ 1,306,849 1 to 2 years — Total Backlog $ 1,306,849 Although backlog reflects business that is considered to be firm, cancellations, deferrals or scope adjustments may occur. Backlog is adjusted to reflect any known project cancellations, revisions to project scope and cost and project deferrals, as appropriate. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2023 | |
Stockholders' Equity [Abstract] | |
Stockholders' Equity | 12. Stockholders’ Equity Public Offerings – In October 2021, the Company closed a registered direct offering and concurrent private placement of its common stock (the "October Offering") that the Company effected pursuant to the Securities Purchase Agreement that it entered into on October 25, 2021 with an institutional investor and received gross proceeds of $11.55 million. Pursuant to the terms of the Purchase Agreement, the Company issued to the investor (A) in a registered direct offering (i) 975,000 shares (the “Public Shares”) of its common stock, and (ii) pre-funded warrants (the “Pre-Funded Warrants”) to purchase up to 2,189,384 shares (the “Pre-Funded Warrant Shares”) of common stock and (B) in a concurrent private placement, Series A warrants to purchase up to 1,898,630 shares (the “Common Stock Warrant Shares”) of common stock (the “Common Stock Warrants,” and together with the Public Shares and the Pre-Funded Warrants, the “Securities”) (the “Offering The Pre-Funded Warrants were immediately exercisable at a nominal exercise price of $0.001 and all Pre-Funded Warrants sold have been exercised. The Common Stock Warrants have an exercise price of $4.80 per share, are exercisable upon issuance and will expire five years from the date of issuance. A.G.P./Alliance Global Partners (the “Placement Agent”) acted as the exclusive placement agent for the transaction pursuant to that certain Placement Agency Agreement, dated as of October 25, 2021, by and between the Company and the Placement Agent (the “Placement Agency Agreement”), the Placement Agent received (i) a cash fee equal to seven percent (7.0%) of the gross proceeds from the placement of the Securities sold by the Placement Agent in the Offering and (ii) a non-accountable expense allowance of one half of one percent (0.5%) of the gross proceeds from the placement of the Gross Proceeds Securities sold by the Placement Agent in the Offering. The Company also reimbursed the Placement Agent’s expenses up to $50,000 upon closing the Offering. Securities Purchase Agreement Underwriting Agreement Equity Purchase Agreement - On February 7, 2023, the Company also entered into an Equity Purchase Agreement (the “EP Agreement”) and related Registration Rights Agreement (the “Rights Agreement”) with Peak One, pursuant to which the Company shall have the right, but not the obligation, to direct Peak One to purchase up to $10,000,000.00 (the “Maximum Commitment Amount”) in shares of the Company’s common stock in multiple tranches upon satisfaction of certain terms and conditions contained in the EP Agreement and Rights Agreement which includes but is not limited to filing a registration statement with the SEC and registering the resale of any shares sold to Peak One. Further, under the EP Agreement and subject to the Maximum Commitment Amount, the Company has the right, but not the obligation, to submit a Put Notice (as defined in the EP Agreement) from time to time to Peak One (i) in a minimum amount not less than $25,000.00 and (ii) in a maximum amount up to the lesser of ( (a) $750,000.00 or (b) 200% of the Average Daily Trading Value (as defined in the EP Agreement). In connection with the EP Agreement, the Company One One shares of its common stock, and file a registration statement registering the common stock issued or issuable to Peak One and Investments under the Agreement for resale with the Securities and Exchange Commission within 60 calendar days of the Agreement, as more specifically set forth in the Rights Agreement. The registration statement was declared effective on April 14, 2023 The obligation of Peak One to purchase the Company’s common stock under the EP Agreement begins on the date of the EP Agreement, and ending on the earlier of (i) the date on which Peak One shall have purchased common stock pursuant to the EP Agreement equal to the Maximum Commitment Amount, (ii) thirty six (36) months after the date of the EP Agreement, (iii) written notice of termination by the Company or (iv) the Company’s bankruptcy or similar event (the “Commitment Period”). During the Commitment Period, the purchase price to be paid by Peak One for the common stock under the EP Agreement will be 97% of the Market Price, which is defined as the lesser of the (i) closing bid price of the common stock on its principal market on the trading day immediately preceding the respective Put Date (as defined in the Agreement), or (ii) lowest closing bid price of the common stock during the Valuation Period (as defined in the Agreement), in each case as reported by Bloomberg Finance L.P or other reputable source designated by Peak One. The EP Agreement and the Rights Agreement contain customary representations, warranties, agreements and conditions to completing future sale transactions, indemnification rights and obligations of the parties. Among other things, Peak One represented to the Company, that it is an “accredited investor” (as such term is defined in Rule 501(a) of Regulation D under the Securities Act, and the Company sold the securities in reliance upon an exemption from registration contained in Section 4(a)(2) of the Securities Act and Regulation D promulgated thereunder. Common Stock Issued for Services – During the three months ended March 31, 2023, the Company issued 287,512 shares of common stock for services provided. The value of the shares amounted to $437,325. Restricted Stock Units – During the three months ended March 31, 2023, the Company issued 1,351,097 shares of common stock for previously vested restricted stock units. |
Segments and Disaggregated Reve
Segments and Disaggregated Revenue | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Segments and Disaggregated Revenue | 13. Segments and Disaggregated Revenue Construction Medical Development Corporate and support Consolidated Fiscal Quarter Ended March 31, 2023 Revenue $ 5,503,935 $ — $ — $ — $ 5,503,935 Cost of revenue 5,573,407 — — — 5,573,407 Operating expenses 118,560 897 720,913 2,350,227 3,190,597 Operating loss (188,032 ) (897 ) (720,913 ) (2,350,227 ) ( 3,260,069 ) Other income (expense) 18,564 — (287,297 ) 9,362 (259,371 ) Income (loss) before income taxes (169,468 ) (897 ) (1,008,210 ) (2,340,865 ) (3,519,440 ) Net income attributable to non-controlling interest — — — — — Net income (loss) attributable to common stockholders of Safe & Green Holdings Corp. $ (169,468 ) $ (897 ) $ (1,008,210 ) $ (2,340,865 ) $ (3,519,440 ) Total assets $ 10,458,066 $ 4,581 $ 11,369,614 $ 6,608,514 $ 28,440,775 Depreciation and amortization $ 148,508 $ — $ — $ — $ 148,508 Capital expenditures $ 531,083 $ — $ — $ — $ 531,083 Construction Medical Development Corporate and support Consolidated Fiscal Quarter Ended March 31, 2022 Revenue $ 1,718,770 $ 6,885,828 $ — $ — $ 8,604,598 Cost of revenue 1,720,714 4,397,449 — — 6,118,163 Operating expenses 109,163 18,973 281,988 1,657,419 2,067,543 Operating income (loss) (111,107 ) 2,469,406 (281,988 ) (1,657,419 ) 418,892 Other income (expense) — — (40,000 ) 122,836 82,836 Income (loss) before income taxes (111,107 ) 2,469,406 (321,988 ) (1,534,583 ) 501,727 Net income attributable to non-controlling interest — 1,218,905 — — 1,218,905 Net income (loss) attributable to common stockholders of Safe & Green Holdings Corp. $ (111,107 ) $ 1,250,501 $ (321,988 ) $ (1,534,583 ) $ (717,178 ) Total assets $ 10,464,450 $ 4,857,366 $ 8,889,271 $ 13,752,110 $ 37,963,197 Depreciation and amortization $ 143,435 $ 263,169 $ 8,628 $ — $ 415,232 Capital expenditures $ 24,100 $ — $ 893,785 $ 4,980 $ 922,865 Inter-segment revenue elimination $ — $ 160,500 $ — $ (160,500 ) $ — |
Warrants
Warrants | 3 Months Ended |
Mar. 31, 2023 | |
Warrants [Abstract] | |
Warrants | 14. Warrants In conjunction with the June 2017 Public Offering, the Company issued to certain affiliates of the underwriters, as compensation, warrants to purchase an aggregate of shares of common stock at an exercise price of $ per share. The warrants are exercisable at the option of the holder on or after June 21, 2018 and expire June 21, 2023. . The fair market value of the warrants as of the date of issuance has been included in issuance costs in additional paid-in capital. In conjunction with the Purchase Agreement in April 2019, the Company also sold warrants to purchase up to an aggregate of 42,388 October 29, 2024 . T he Company issued to certain affiliates of the underwriters, as compensation, warrants to purchase an aggregate of 4,239 shares of common stock at an initial exercise price of $27.50 per share. The warrants are exercisable at the option of the holder on or after October 29, 2019 and expire April 24, 2024 . In conjunction with the Underwriting Agreement in August 2019, the Company issued to the underwriter, as compensation, warrants to purchase an aggregate of 2,250 shares of common stock at an initial exercise price of $21.25 per share. The warrants are exercisable at the option of the holder on or after February 1, 2020 August 29, 2024 In conjunction with the Underwriting Agreement in May 2020 shares of common stock at an initial exercise price of $3.14 per share. The warrants are exercisable at the option of the holder on or after November 6, 2021 . In conjunction with the Purchase Agreement in October 2021, the Company also issued Series A 1,898,630 have an exercise price of $ 4.80 per share, exercisable at the option of the holder on or after October 26, 2021 and will expire five years from the date of issuance. In conjunction with the issuance of the Debenture in February 2023, the Company issued the Peak Warrant to purchase 500,000 shares of Common Stock. The Peak Warrant expires five years |
Share-based Compensation
Share-based Compensation | 3 Months Ended |
Mar. 31, 2023 | |
Stock Options and Grants [Abstract] | |
Share-based Compensation | 15 Share-based Compensation On October 26, 2016, the Company’s Board of Directors approved the issuance of up to 25,000 shares of the Company’s common stock in the form of restricted stock or options (“ Stock Plan”). Effective January 20, 2017, the Stock Plan was amended and restated as the SG Blocks, . Stock Incentive Plan, as further amended eff June 1, 2018 and as further amended on July 30, 2020 and as further amended on August 18, 2021, (the “Incentive Plan”). The Incentive Plan authorizes the issuance of up to 3,625,000 shares of common stock. It authorizes the issuance of equity-based awards in the form of stock options, stock appreciation rights, restricted shares, restricted share units, other share-based awards and cash-based awards to non-employee directors and to officers, employees and consultants of the Company and its subsidiary, except that incentive stock options may only be granted to the Company’s employees and its subsidiary’s employees. The Incentive Plan expires on October 26, 2026, and is administered by the Company’s Compensation Committee of the Boa shares of common stock available for issuance under the Incentive Plan . Stock-Based Compensation Expense Stock-based compensation expense is included in the condensed consolidated statements of operations as follows: Three Months Ended March 31, 2023 2022 Payroll and related expenses $ 656,369 $ 649,090 Total $ 656,369 $ 649,090 The following table presents total stock-based compensation expense by security type included in the condensed Three Months Ended March 31, 2023 2022 Stock options $ — $ — Restricted Stock Units $ 656,369 $ 649,090 Total $ 656,369 $ 649,090 Stock-Based Option Awards The Company has issued no stock-based options during the three months ended March 31, 2023 Because the Company does not have significant historical data on employee exercise behavior, the Company uses the “Simplified Method” to calculate the expected life of the stock-based option awards granted to employees. The simplified method is calculated by averaging the vesting period and contractual term of the options. The following table summarizes stock-based option activities and changes during the three months ended March 31, 2023 Shares Weighted Average Fair Value Per Share Weighted Average Exercise Price Per Share Weighted Average Remaining Terms (in years) Aggregate Intrinsic Value Outstanding – December 31, 2022 36,436 24.80 78.71 4.34 — Granted — — — — — Exercised — — — — — Cancelled — — — — — Outstanding – March 31, 2023 36,436 24.80 78.71 4.09 — Exercisable – December 31, 2022 36,436 24.80 78.71 4.34 — Exercisable – March 31, 2023 36,436 24.80 78.71 4.09 — For the three months ended March 31, 2023 and 2022, the Company recognized stock-based compensation expense of $0 and $0, respectively , related to stock options. This expense is included in payroll and related expenses in the accompanying condensed consolidated statements of operations. As of March 31, 2023, there was no Restricted Stock Units During 2022, a total of 1,045,000 of restricted stock units were granted to Mr. Galvin and seven employees of the Company, under the Company’s stock-based compensation plan, at the fair value ranging from $1.30 to $2.24 per share, which represents the closing price of the Company’s common stock at the date of grant. The restricted stock units granted vest quarterly over two years On November 18, 2022, a total of 80,000 of restricted stock units were granted to four of the Company's non-employee directors, under the Company's stock-based compensation plan, at the fair value of $1.30 per share, which represents the closing price of the Company's common stock on November 18, 2022. The restricted stock units granted vest in equal quarterly installments over a two For the three months ended March 31, 2023 and 2022 , the Company recognized stock-based compensation of $ 656,369 and $ 649,090 related to restricted stock units. This expense is included in the payroll and related expenses, general and administrative expenses, and marketing and business development expense in the accompanying condensed consolidated statement of operations. As of March 31, 2023, there was unrecognized compensation costs of $1,602,133 related to non-vested restricted stock units. The following table summarized restricted stock unit activities during the three months ended March 31, 2023: Number of Shares Non-vested balance at January 1, 2023 1,190,935 Granted — Vested (262,813 ) Forfeited/Expired — Non-vested balance at March 31, 2023 928,122 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 16. Commitm Legal Proceedings The Company is subject to certain claims and lawsuits arising in the normal course of business. The Company assesses liabilities and contingencies in connection with outstanding legal proceedings utilizing the latest information available. Where it is probable that the Company will incur a loss and the amount of the loss can be reasonably estimated, the Company records a liability in our consolidated financial statements. These legal accruals may be increased or decreased to reflect any relevant developments on a quarterly basis. Where a loss is not probable or the amount of the loss is not estimable, the Company does not record an accrual, consistent with applicable accounting guidance. Based on information currently available, advice of counsel, and available insurance coverage, the Company believes that the established accruals are adequate and the liabilities arising from the legal proceedings will not have a material adverse effect on the consolidated financial condition. However, that in light of the inherent uncertainty in legal proceedings there can be no assurance that the ultimate resolution of a matter will not exceed established accruals. As a result, the outcome of a particular matter or a combination of matters may be material to the results of operations for a particular period, depending upon the size of the loss or the income for that particular period. 1.) Pizzarotti Litigation Pizzarotti’s suit arose from a contract dated April 3, 2018 that it executed with Phipps whereby Pizzarotti, a construction manager, engaged Phipps to perform stone procuring and tile work at a construction project located at 161 Maiden Lane, New York 10038. Pizzarotti’s claims against the Company arise from a purported assignment agreement dated August 10, 2018, whereby Pizzarotti claims that the Company agreed to assume certain obligations of Phipps under a certain trade contract between Pizzarotti and Phipps & Co. Phipps’ claims against the Company arise from a purported Assignment Agreement, dated as of May 30, 2018, between Pizzarotti, Phipps and the Company (the “Assignment Agreement”), pursuant to which, it is alleged, that the Company agreed to provide a letter of credit in connection with the sub-contracted work to be provided by Phipps to Pizzarotti. The Company believes that the Assignment Agreement was void for lack of consideration and moved to dismiss the case on those and other grounds. On June 17, 2020, the New York Supreme Court entered an order dismissing certain claims against the Company brought by cross claimant Phipps & Co. Specifically, the court dismissed Phipps’ claims for indemnification, contribution, fraud, negligence and negligent misrepresentation. The court did not dismiss Phipps’ claim for breach of the Assignment Agreement. The issue of the validity of the Assignment Agreement, and the Company’s defenses to the claims brought by the plaintiff Pizzarotti, and cross claimant Phipps, are being litigated. The Company maintains that the Assignment Agreement, to the extent valid and enforceable, was properly terminated and/or there are no damages, and, consequently, that the claims brought against the Company are without merit. The Company intends to continue to vigorously defend the litigation. The parties have engaged in written discovery but no depositions have been conducted as of yet. By motion dated February 24, 2021, Pizzarotti moved to stay the entire action pending the outcome of a separate litigation captioned Pizzarotti, LLC v. FPG Maiden Lane, LLC et. al Litigation is subject to many uncertainties, and the outcome of this action is not predicted with assurance. The Company is currently unable to predict the possible loss or range of loss, if any, associated with the resolution of this litigation, and, accordingly, the Company has made no provision related to this matter in the consolidated financial statements. Vendor Litigation 1.) On April 13, 2020, Plaintiff SG Blocks, Inc. (the “Company”) filed a Complaint against HOLA Community Partners (“HCP”), Heart of Los Angeles Youth, Inc. (“HOLA”) (HCP and HOLA are collectively referred to as the “HOLA Defendants”), and the City of Los Angeles (“City”) in the United States District Court for the Central District of California, Case No. 2:20-cv-03432-ODW (“HOLA Action”). The Company asserted seven claims against HOLA Defendants arising out of and related to the HOLA Project, to wit, for: (1) breach of contract; (2) conversion; (3) default and judicial foreclosure under the Agreement as a security agreement; (4) misappropriation of trade secrets under California Civil Code section 3426; (5) misappropriation of trade secrets under 18 U.S.C. § 1836; and (6) intentional interference with contractual relations. On April 20, 2020, HOLA filed a separate action against the Company in the Los Angeles Superior Court arising out of the HOLA Project, asserting claims of (1) negligence; (2) strict products liability; (3) strict products liability, (4) breach of contract; (5) breach of express warranty; (6) violation of Business and Professions Code § 7031(b); and (7) violation of California’s unfair competition law, Business and Professions Code section 17200 (“UCL”) (“HOLA State Court Action”). The HOLA State Court Action was removed to the Central District of California and consolidated with the HOLA Action. On January 22, 2021, the Company filed a Third-Party Complaint in the HOLA Action against Third-Party Defendants Teton Buildings, LLC, Avesi Construction, LLC, and American Home Building and Masonry Corp (“AHB”) for indemnity and contribution with respect to HOLA’s claims. The Company has also notified its general liability carrier Sompo International regarding coverage concerning HOLA’s claims On February 25, 2021, the Court entered an order dismissing the Company’s claims for (1) breach of contract; (2) conversion; (3) default and judicial foreclosure under the Agreement as a security agreement; (4) misappropriation of trade secrets under California Civil Code section 3426; (5) misappropriation of trade secrets under 18 U.S.C. § 1836; but denied dismissal of the Company’s claims for intentional interference with contractual relations. The Court also denied the Company’s motion to dismiss HOLA’s claims. On March 12, 2021, the HOLA Defendants filed an answer to the Company’s complaint against it denying liability and asserting affirmative defenses. On March 12, 2021, the Company filed an answer to the HOLA Defendants’ First Amended Consolidated Complaint against it, denying liability and asserting affirmative defenses. On April 26, 2021, the Company and the HOLA Defendants filed a Joint Stipulation to Dismiss HOLA Community Partners’ Sixth Claim for Relief (violation of California Business and Professions Code §7031(b)), with prejudice, pursuant to Fed. R. Civ. P. 41(a)(1)(A)(ii). On July 23, 2021, the Company filed a First Amended Third-Party Complaint adding the following additional third party defendants seeking, inter alia On September 2, 2021, Schindler Elevator Corp. filed its answer to the First Amended Third-Party Complaint. On September 3, 2021, Junior Steel Co. filed its answer to the First Amended Third-Party Complaint. On September 7, 2021, Anderson Air Conditioning, L.P. filed its answer to the First Amended Third-Party Complaint. On October 6, 2021, the McIntyre Group filed its answer to the First Amended Third-Party Complaint. On February 7, 2022, the Company filed a request for entry of a Clerk’s default against the following defendants: American Home Building and Masonry Corp., Avesi Construction, Marne Construction, Inc., FirstForm, Inc., Dowell & Bradley Construction, Inc, Saddleback Roofing, Inc., and US Smoke and Fire Corp. On February 9, 2022, the court entered a clerk’s default pursuant to Federal Rule 55 against the following defendants: American Home Building and Masonry Corp. Avesi Construction, Dowel & Bradley Construction, Inc., Saddleback Roofing Inc. and US smoke and Fire Corp. The parties that have answered and appeared in the case are currently engaged in discovery. The cut-off for fact discovery has been extended to September 12, 2022, and a trial was set for January 31, 2023. 2 .) SG Blocks, Inc. v HOLA Community Partners, et. al . On or about December 31, 2022, the parties who appeared in the HOLA Action executed a Settlement Agreement and Release. On February 28, 2023 the court “so ordered” the parties’ stipulation dismissing all causes of action against the parties to the Settlement Agreement and Release. 3.) Teton Buildings, LLC (i) On January 1, 2019, the Company commenced an action against Teton Buildings, LLC (“Teton”) in Harris County, Texas (“Teton Texas Action”) to recover approximately $2,100,000 arising from defendant’s breach of the operative contract related to Heart of Los Angeles construction project in Los Angeles (the “HOLA Project”) entered into on or about June 2, 2017. The Petition brought claims of breach of contract, negligence, and breach of express warranty. In or about February 2022 the Company dismissed without prejudice the Teton Texas Action. (ii) On or about September 12, 2018, the Company entered into a Firm Price Quote and Purchase (the “GVL Contract”) with Teton to govern the manufacture and provision of 23 shipping containers and modular units (the “Teton GVL Modules”) for the Four Oaks Gather GVL project in South Carolina (the “GVL Project.”). The Company maintains that Teton breached the GVL Contract by (i) failing to timely deliver the Teton GVL Modules, (ii) delivering Teton GVL Modules that were defective in their design and manufacture, (iii) otherwise failed to meet South Carolina Building Code regulations and (iv) breached applicable warranties. As a result of the breach and defects in performance, design and manufacture by Teton, Company asserts that it has sustained $761,401.66 in actual and consequential damages, excluding attorney’s fees. On October 16, 2019, Teton filed for Chapter 11 in the United States Bankruptcy Court for Southern District of Texas, Houston Division styled In re: Teton Buildings, LLC and bearing the case number 19-35811. On February 11, 2020, the Company filed a proof of claim again Teton in the amount of $2,861,401.66 arising from the HOLA Project and the GVL Contract. On or about March 16, 2020, the Bankruptcy Court converted Teton’s Chapter 11 reorganization case to a Chapter 7 liquidation case. On July 18, 2019, Ronald Sommers, the Chapter 7 Trustee, filed a Report of No Distribution stating that there is no property available for distribution to creditors. On August 20, 2019, the Bankruptcy Court closed the Teton bankruptcy case. As such, there is no prospect of any recovery against Teton. On January 22, 2021, the Company filed a third-party complaint against Teton in the United States District Court for the Central District of California, Case No. 2:20−cv−03432 in the HOLA Action (described above), seeking to determine Teton’s liability in its capacity as a bankruptcy debtor in order to collect any damages payable from Teton’s liability insurance carrier or carriers. On July 23, 2021, the Company filed a First Amended Third-Party Complaint against Teton and other named third party defendants (see #2 below). Teton has been served with the First Amended Third-Party Complaint and on or about February 11, 2022, Teton filed an answer and affirmative defenses. On or about December 31, 2022, the parties who appeared in the HOLA Action, including Teton by and through its insurance carrier, executed a Settlement Agreement and Release. On February 28, 2023 the court “so ordered” the parties’ stipulation dismissing all causes of action against the parties to the Settlement Agreement and Release. 4.) SG Blocks, Inc. v. EDI International, PC .- On June 21, 2019, the Company filed a lawsuit against EDI International, PC, a New Jersey corporation, in the Superior Court of the State of California, County of Los Angeles, Central District, in connection with the parties ’ ’ On July 8, 2020, the Company added PVE LLC as a defendant in the lawsuit, claiming PVE LLC is liable to the same extent as EDI International, PC. The case is currently in the discovery stage and a trial date has been set for May 2, 2022. On May 14, 2021, EDI accepted the Company’s Statutory Offer of Compromise, pursuant to California Code of Civil Procedures §998, to settle EDI’s cross-claims. On July 26, 2021, the Company and EDI entered into a certain General Release agreement whereby in exchange for payment by the Company in the amount of $67,125.83 EDI released the Company from all liabilities and damages related to EDI’s cross-claims. The Company continues to prosecute its claim against EDI for tortious interference with the Company’s economic relationship with HOLA Community Partners and Heart of Los Angeles Youth, Inc. The discovery period has concluded and a trial date has been set for October 2023. Litigation is subject to many uncertainties, and the outcome of this action is not predicted with assurance. The Company is currently unable to predict the outcome or possible recovery or loss or range of loss, if any, associated with the resolution of this litigation, and, accordingly, the Company has made no provision related to this matter in the consolidated financial statements. Other Litigation SG Blocks, Inc. v. Osang Healthcare Company, Ltd. , On April 14, 2021, the Company commenced an action against Osang Healthcare Company, Ltd. (“Osang”) in the United States District Court, Eastern District of New York, Case No. 21-01990 (“Osang Action”). The Company has asserted that Osang materially breached a certain Managed Supply Agreement (“MSA”) entered into between the parties on October 12, 2020, pursuant to which the Company received on consignment two million (2,000,000) units of Osang’s “Genefinder Plus RealAmp Covid-19 PCR Test” (the “Covid-19 Test”) for domestic and international distribution. The Company has also asserted that Osang breached the covenant of good faith and fair dealing, fraudulently induced it to enter into the MSA, and violated §349 of the New York General Business Law’s prohibition of deceptive business practices. On June 18, 2021, Osang served a motion to dismiss the Osang Action pursuant to Rule 12(b)(6) of the Federal Rules of Civil Procedure. On July 30, 2021, the Company served its opposition to the motion to dismiss. On September 22, 2022, the court entered an order granting in part and denying in part Osang’s motion to dismiss. The court denied that part of Osang’s motion that sought dismissal of the Company’s causes of action for breach of contract (but denied recovery of lost profits) and fraud, but dismissed the Company’s causes of action for breach of implied covenant of good faith and fair dealing, indemnification, accounting, and violation of the New York Unlawful and Deceptive Trade Practices Act (GBL §349). A status conference was held on November 16, 2022 at which time the Court entered a scheduling order for the conducting of discovery. Discovery is ongoing. After mediation before the Court on March 14, 2023, the parties entered into a settlement agreement and mutual release on May 4, 2023. 2.) Safe & Green Holdings Corp. v. Shaw et al., On March 15, 2023, the Company commenced an action against two shareholders, John William Shaw and Leo Patrick Shaw, in the United States District Court for the Southern District of New York, captioned Safe and Green Holdings Corp. v. Shaw et al., 1:23-cv-02244, for violations of the short swing profit rule pursuant to Section 16(b) of the Securities and Exchange Act of 1934. Commitments In April 2020, the Company entered into an amendment to its employment agreement, dated January 1, 2017, with Paul Gavin (the "Amendment"), to extend the term of employment to December 31, 2021, provide for an annual base salary of $400,000 provide for a performance bonus structure for a bonus of up to 50% of base salary upon the Company’s achievement of $2,000,000 EBITDA and additional performance bonus payments for the achievement of EBITDA in excess of $2,000,000 based on a percentage of the incremental increase in EBITDA (ranging from 10% of the incremental increase in EBITDA if the Company achieves over $2,000,000 and up to $7,000,000 in EBITDA, 8% of the incremental increase in EBITDA if the Company achieves over $7,000,000 and up to $12,000,000 in EBITDA and 3% of the incremental increase in EBITDA over $12,000,000), provide for a profits-based additional bonus of up to $250,000 in certain limited circumstances, and provide for one (1) year severance, plus a pro-rated amount of any unpaid bonus earned by him during the year as verified by the Company’s principal financial officer, if Mr. Galvin is terminated without cause. At the Company’s option, up to fifty (50%) percent of the EBITDA performance bonuses may be paid in restricted stock units if then available for grant under the Company’s Incentive Plan. On July 5, 2022, the Company entered into an amendment to its employment agreement, dated January 1, 2017, as amended, with Paul Galvin, to provide for the payment of an annual base salary of $ 500,000 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | 17. Subsequent Events On April 4, 2023, the Compensation Committee of the Board of Directors granted an award under the Company’s Incentive Plan of 125,261 restricted stock units to Paul Galvin, vesting quarterly over two years, and an award of 118,166 restricted stock units to David Villarreal, vesting quarterly over two years. In addition, the Compensation Committee granted to each of , Hawkins, Elizabeth Cormier-May and Christopher Melton 37,500 under the Plan, vesting quarterly over two years. On April 28, 2023, Yaniv Blumenfeld, a member of the Board of Directors (was appointed as a director of SG DevCo. In connection with his appointment to the SGDevCo board of directors, Mr. Blumenfeld resigned, effective as of April 28, 2023, from his position as a member of the Company’s Board. The resignation was not related to any disagreement with the Company on any matter relating to its operations, policies or practices The Company has agreed to invite Mr. Blumenfeld to attend all meetings of the Board of Directors as a non-voting Board observer so long as he continues to serve as a director of SG DevCo. On May 1, 2023, the Company appointed Patricia Kaelin as the Company’s Chief Financial Officer and entered into an employment agreement with Patricia Kaelin (the “Kaelin Employment Agreement”) to employ Ms. Kaelin in such capacity for an initial term of two (2) years, which provides for an annual base salary of $250,000, a discretionary bonus of up to 20% of her base salary upon achievement of objectives as may be determined by the Company’s board of directors and severance in the event of a termination without cause on or after September 30, 2023 in amount equal to equal to one year’s annual base salary and benefits. The Kaelin Employment Agreement also provides for the grant to Ms. Kaelin of a restricted stock grant under the Company’s Stock Incentive Plan, as amended and as available for grant, of 60,000 shares of the Company’s common stock, vesting quarterly on a pro-rata basis over the next eighteen (18) months of continuous service. Ms. Kaelin is subject to a one-year post-termination non-compete and non-solicit of employees and clients. She is also bound by confidentiality provisions. On May 4, 2023, the Board of Directors took action to vest in full 1,627,773 restricted stock units granted under the Incentive Plan (the “Subject Awards”), which included 476,049 Restricted stock units granted to Paul Galvin, 140,105 restricted stock units granted to David Villarreal, 117,500 restricted stock units granted to Nicolai Brune, 86,960 restricted stock units granted to William Rogers, 59,439 restricted stock units granted to Christopher Melton, 37,500 restricted stock units granted to Elizabeth May-Cormier, 37,500 restricted stock units granted to Shafron Hawkins and 68,814 restricted stock units granted to Yaniv Blumenfeld. The Company will reimburse each recipient of the Subject Awards who is an employee of the Corporation or a member of the Board of Directors, and who agrees to a 180-day lock-up on any sale or transfer of the shares of common stock to be received by them under the Subject Awards (the “Subject Shares”) and to comply with the requirements of the Company’s Corporate Trading Policy with respect to any sale or transfer of the Subject Shares by them, for the taxes to be paid by them in respect of the accelerated vesting of their Subject Awards (but not any taxes due in respect of such reimbursement). |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of presentation and principals of consolidation | Basis of presentation and principals of consolidation – The accompanying unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and with the instructions to the Quarterly Report on Form 10-Q and Article 8 Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for annual financial statements. The condensed financial statements and notes should be read in conjunction with the consolidated financial statements and notes for the year ended December 31, 2022 included in the Company's Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the Securities and Exchange Commission on March 31, 2023. In the opinion of management, all adjustments, consisting of normal accruals, considered necessary for a fair presentation of the interim financial statements have been included. Results for the three months ended March 31, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. |
Recently adopted accounting pronouncements | Recently adopted accounting pronouncements - New accounting pronouncements implemented by the Company are discussed below or in the related notes, where appropriate. |
Accounting estimates | Accounting estimates The Company's estimates used in these financial statements include, but are not limited to, revenue recognition, stock-based compensation, accounts receivable reserves, inventory valuations, goodwill, the valuation allowance related to the Company’s deferred tax assets, the carrying amount of intangible assets, right of use assets and the recoverability and useful lives of long-lived assets. Certain of the Company’s estimates could be affected by external conditions, including those unique to the Company and general economic conditions. It is reasonably possible that these external factors could have an effect on the Company’s estimates and could cause actual results to differ from those estimates. |
Operating cycle | Operating cycle – The length of the Company’s contracts varies, but is typically between six twelve months twelve months one year |
Revenue recognition | Revenue recognition – The Company determines, at contract inception, whether it will transfer control of a promised good or service over time or at a point in time, regardless of the length of contract or other factors. The recognition of revenue aligns with the timing of when promised goods or services are transferred to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. To achieve this core principle, the Company applies the following steps in accordance with its revenue policy: ( 1 Identify the contract with a customer ( 2 Identify the performance obligations in the contract ( 3 Determine the transaction price ( 4 Allocate the transaction price to performance obligations in the contract ( 5 Recognize revenue as performance obligations are satisfied On certain contracts, the Company applies recognition of revenue over time, which is similar to the method the Company applied under previous guidance (i.e. percentage of completion). For product or equipment sales, the Company applies recognition of revenue when the customer obtains control over such goods, which is at a point in time. The Company entered into a joint venture agreement with Clarity Lab Solutions, LLC (“Clarity Labs”) (the “JV”) in the fourth quarter of 2021 . Revenue from the activities of the JV is related to clinical testing services and is recognized when services have been rendered, which is at a point in time. Included in the consideration the Company expected to be entitled to receive, the Company estimates its contractual allowances, payer denials and price concessions. In addition, the Company formed Chicago Airport Testing, LLC which collected rental revenue from subleasing to a consortium of government entities assisting in COVID-19 testing. to activities through these two joint ventures, which is included in medical revenue on the accompanying consolidated statements of operations. Due to the ongoing lower affects of COVID-19 restrictions, the JV began to wind down during the fourth quarter of 2022. Disaggregation of Revenues The Company’s revenues for the three, months ended March 31, 2022 wase principally derived from construction and engineering contracts related to Modules, and medical revenue derived from lab testing and test kit sales The Company's contracts are with customers in various industries. Revenue recognized at a point in time and recognized over time were Revenue recognized at a point in time and recognized over time were $ 6,885,828 and $1,718,770, respectively, for the three months ending March 31, 2022 . The following tables provide further disaggregation of the Company’s Three Months Ended March 31, Revenue by Customer Type 2023 2022 Construction and Engineering Services: Government $ — — % $ 39 — % Hotel 33,676 1 % 897,244 10 % Multi-Family (includes Single Family) — — % 77,626 1 % Office 5,470,259 99 % 728,875 8 % Retail — — % 5,344 1 % Special Use — — % 9,642 — % Subtotal 5,503,935 100 % 1,718,770 20 % Medical Revenue: Medical (lab testing, kit sales and equipment) — — % 6,885,828 80 % Total revenue by customer type $ 5,503,935 100 % $ 8,604,598 100 % Contract Assets and Contract Liabilities Accounts receivable are recognized in the period when the Company’s right to consideration is unconditional. Accounts receivable are recognized net of an allowance for credit losses. A considerable amount of judgment is required in assessing the likelihood of realization of receivables. The timing of revenue recognition may differ from the timing of invoicing to customers. Contract assets include unbilled amounts from long-term construction services when revenue recognized under the cost-to-cost measure of progress exceeds the amounts invoiced to customers, as the amounts cannot be billed under the terms of our contracts. Such amounts are recoverable from customers based upon various measures of performance, including achievement of certain milestones, completion of specified units or completion of a contract. Contract assets are generally classified as current within the condensed consolidated balance sheets. Contract liabilities from construction and engineering contracts occur when amounts invoiced to customers exceed revenues recognized under the cost-to-cost measure of progress. Contract liabilities additionally include advanced payments from customers on certain contracts. Contract liabilities decrease as the Company recognizes revenue from the satisfaction of the related performance obligation. Contract liabilities are generally classified as current within the condensed consolidated balance sheet. A lthough Deferred Contract Costs - Prior to entering into the Exclusive License Agreement (“ELA”) in 2019, the Company was subject to an agreement to construct and develop a certain property (“Original Agreement”), which now was subject to the ELA. Because of this, the Company is no longer obliged to its Original Agreement. Upon entering the ELA, the Company had an outstanding accounts receivable balance of $306,143 which was forfeited and recognized this amount as deferred contract costs. This amount was offset by $102,217 , which was reimbursement from the licensee for project costs on this project. The Company incurred total deferred contract costs of $203,926. The Company considered this amount an incremental cost of obtaining that ELA, because the Company expected to recover those costs through future royalty payments. The Company initially planned to amortize the asset over sixty months , which is the initial term of the ELA because the asset relates to the services transferred to the customer during the contract term. As of . During the three months ended March 31, 2023 and 2022, amortization expense relating to the deferred contract costs amounted to $10,196 and $10,196, respectively, and is included in general and administrative expenses on the accompanying consolidated statements of operations. T he ELA was terminated on June 15, 2021 but the Company expects to recover the deferred contract costs from the Assignment of Limited Rights Under Membership Interest Redemption Agreement, dated June 15, 2021. |
Business Combinations | Bu - The Company accounts for business acquisitions using the acquisition method of accounting in accordance with ASC 805 |
Variable Interest Entities | Variable Interest Entities – The Company accounts for certain legal entities as variable interest entities (“VIE"). When evaluating a VIE for consolidation, the Company must determine whether or not there is a variable interest in the entity. Variable interests are investments or other interests that absorb portions of an entity’s expected losses or receive portions of the entity’s expected returns. If it is determined that the Company does not have a variable interest in the VIE, no further analysis is required and the VIE is not consolidated. If the Company holds a variable interest in a VIE, the Company consolidates the VIE when there is a controlling financial interest in the VIE and therefore are deemed to be the primary beneficiary. The Company is determined to have a controlling financial interest in a VIE when it has both the power to direct the activities of the VIE that most significantly impact the VIE economic performance and the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to that VIE. This determination is evaluated periodically as facts and circumstances change. On August 27, 2020 the Company entered into a joint venture agreement with Clarity Lab Solutions, LLC (“Clarity Labs”) (the “JV”). In consideration and subject to Clarity Lab’s services and commitments and provided the agreement remains valid and in force, and is not terminated, the Company agreed to issue 200,000 restricted shares of the Company’s common stock over a defined vesting period starting in December 1, 2020. The restricted shares of the Company common stock were not issued to Clarity Labs as certain capital commitments were not met. The Company has determined it is the primary beneficiary of Clarity Mobile Venture and has thus consolidated the activities in its consolidated financial statements. Due to the ongoing lower affects of COVID-19 restrictions, the JV was wound down during the fourth quarter of 2022. On January 18, 2021 the Company entered into an operating agreement to form CAT. The purpose of CAT is to market , sell, distribute, lease and otherwise commercially exploit certain products and services in the COVID- 19 The Company has determined it is the primary beneficiary of CAT and has thus consolidated the activities in its consolidated financial statements. |
Investment Entities | Investment Entities – On May 31, 2021, the Company's subsidiary SG DevCorp agreed to contribute $600,000 to acquire a 50% membership interest in Norman Berry II Owner LLC (“Norman Berry”). The Company contributed $350,329 and $114,433 of the initial $600,000 in the second quarter and third quarter of 2021 respectively, with the remaining $135,238 The Company will use the equity method to report the activities as an investment in its consolidated financial statements. On June 24, 2021, the Company's subsidiary, SG DevCorp, entered into an operating agreement with Jacoby Development for a 10% non-dilutable equity interest for JDI-Cumberland Inlet, LLC (“Cumberland”). The Company contributed $3,000,000 for its 10% equity interest. During the three months ended March 31, 2023, the Company contributed an additional $25,000. During the three months ended March 31, 2023, Norman Berry and Cumberland did not have any material earnings or losses as the investments are in development. In addition, management believes there was no impairment as of March 31, 2023. The approximate combined financial position of the Company’s equity affiliates are summarized below as of March 31, 2023 and December 31, 2022: Condensed balance sheet information: March 31,2023 December 31,2022 (Unaudited) (Unaudited) Total assets $ 37,500,000 $ 37,500,000 Total liabilities $ 7,100,000 $ 7,100,000 Members’ equity $ 30,400,000 $ 30,400,000 |
Cash and cash equivalents | Cash and cash equivalents – The Company considers cash and cash equivalents to include all short-term, highly liquid investments that are readily convertible to known amounts of cash and have original maturities of three months or less upon acquisition. Cash and cash equivalents totaled $ 1,452,501 and $ as of March 31, 2023, |
Short-term investment | Short-term investment – The Company classifies investments consisting of a certificate of deposit with a maturity greater than months but less than year as short-term investment. The Company had no short-term investment as of March 31, 2023 or December 31, , respectively. |
Accounts receivable and allowance for credit losses | Accounts receivable and allowance for credit losses – Accounts receivable are receivables generated from sales to customers and progress billings on performance type contracts. Amounts included in accounts receivable are deemed to be collectible within the Company’s operating cycle. The Company recognizes accounts receivable at invoiced amounts. The Company adopted ASC 326, Current Expected Credit Losses, on January 1, 2023, which requires the measurement and recognition of expected credit losses using a current expected credit loss model. The allowance for credit losses on expected future uncollectible accounts receivable is estimated considering forecasts of future economic conditions in addition to information about past events and current conditions. The allowance for credit losses reflects the Company's best estimate of expected losses inherent in the accounts receivable balances. Management provides an allowance for credit losses based on the Company’s historical losses, specific customer circumstances, and general economic conditions. Periodically, management reviews accounts receivable and adjusts the allowance based on current circumstances and charges off uncollectible receivables when all attempts to collect have been exhausted and the prospects for recovery are remote. Recoveries are recognized when they are received. Actual collection losses may differ from our estimates and could be material to our consolidated financial position, results of operations, and cash flows. |
Inventory | Inventory – Raw construction materials (primarily shipping containers and fabrication materials) are valued at the lower of cost (first-in, first-out method) or net realizable value. Finished goods and work-in-process inventories are valued at the lower of cost or net realizable value, using the specific identification method. Medical equipment and COVID- test and testing supplies are valued at the lower of cost, (first-in, first-out method) or net realizable value. As of March 31, 2023 and December 31, 2022 there was inventory of and $465,560, respectively, for construction materials. |
Goodwill | Goodwill – The Company performs its impairment test of goodwill at the reporting unit level each fiscal year, or more frequently if events or circumstances change that would more likely tha n not reduce the fair value of its reporting unit below its carrying values. The Company performs a goodwill impairment test by comparing the fair value of the reporting unit with its carrying value and recognizes an impairment charge for the amount by which the carrying value exceeds the fair value, not to exceed the total amount of goodwill . The amount by which the carrying value of the goodwill exceeds its implied fair value, if any, is recognized as an impairment loss. |
Intangible assets | Intangible assets – Intangible assets consist of $ 2,766,000 97,164 2022 The amortization expense for the 46,119 41,823 For the year ending December 31,: 2023 (remaining) $ 142,605 2024 190,271 2025 186,854 2026 169,519 2027 165,841 Thereafter 1,177,804 $ 2,032,894 |
Property, plant and equipment | Property, plant and equipment – Property, plant and equipment is stated at cost. Depreciation is computed using the straight-line method over the estimated lives of each asset. Estimated useful lives for significant classes of assets are as follows: computer and software 3 to 5 years, furniture and other equipment 5 to 7 years, automobiles 2 to 5 years, buildings held for lease 5 to 7 years, and equipment o 29 |
Held For Sale Assets | Held For Sale Assets |
Convertible instruments | Convertible instruments – The Company bifurcates conversion options from their host instruments and accounts for them as free standing derivative financial instruments according to certain criteria. The criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under otherwise applicable generally accepted accounting principles with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument. |
Common stock purchase warrants and other derivative financial instruments | Common stock purchase warrants and other derivative financial instruments – The Company classifies as equity any contracts that (i) require physical settlement or net-share settlement or (ii) provides a choice of net-cash settlement or settlement in the Company’s own shares (physical settlement or net-share settlement) providing that such contracts are indexed to the Company’s own stock. The Company classifies as assets or liabilities any contracts that (i) require net-cash settlement (including a requirement to net cash settle the contract if any event occurs and if that event is outside the Company’s control) or (ii) gives the counterparty a choice of net-cash settlement or settlement shares (physical settlement or net-cash settlement). The Company assesses classification of common stock purchase warrants and other free standing derivatives at each reporting date to determine whether a change in classification between assets and liabilities or equity is required. |
Fair value measurements | Fair value measurements – Financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities are carried at cost, which the Company believes approximates fair value due to the short-term nature of these instruments. The Company measures the fair value of financial assets and liabilities based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. The Company uses three levels of inputs that may be used to measure fair value: Level 1 Quoted prices in active markets for identical assets or liabilities. Level 2 Quoted prices for similar assets and liabilities in active markets or inputs that are observable. Level 3 Inputs that are unobservable (for example, cash flow modeling inputs based on assumptions). Transfer into and transfers out of the hierarchy levels are recognized as if they had taken place at the end of the reporting period. |
Share-based payments | Share-based payments – The Company measures the cost of services received in exchange for an award of equity instruments based on the fair value of the award. For employees and directors, including non-employee directors, the fair value of a stock option award is measured on the grant date. The fair value amount is then recognized over the period services are required to be provided in exchange for the award, usually the vesting period. The Company recognizes stock-based compensation expense on a graded-vesting basis over the requisite service period for each separately vesting tranche of each award. Stock-based compensation expense to employees and all directors are reported within payroll and related expenses in the consolidated statements of operations. Stock-based compensation expense to non-employees is reported within marketing and business development expense in the condensed consolidated statements of operations. |
Income taxes | Income taxes The Company accounts for income taxes utilizing the asset and liability approach. Under this approach, deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. The provision for income taxes generally represents income taxes paid or payable for the current year plus the change in deferred taxes during the year. Deferred taxes result from the differences between the financial and tax bases of the Company’s assets and liabilities and are adjusted for changes in tax rates and tax laws when changes are enacted. The calculation of tax liabilities involves dealing with uncertainties in the application of complex tax regulations. The Company recognizes liabilities for anticipated tax audit issues based on the Company’s estimate of |
Concentrations of credit risk | Concentrations of credit risk – Financial instruments, that potentially subject the Company to concentration of credit risk, consist principally of cash and cash equivalents. The Company places its cash with high credit quality institutions. At times, such amounts may be in excess of the FDIC insurance limits. The Company has not experienced any losses in such account and believes that it is not exposed to any significant credit risk on the account. With respect to receivables, concentrations of credit risk are limited to a few customers in the construction industry. The Company performs ongoing credit evaluations of its customers’ financial condition and, generally, requires no collateral from its customers other than normal lien rights. At March 31, 2023 and December 31, 2022, 80% and 80%, respectively, of the Company’s gross accounts receivable were due from two Revenue relating to one and two customers represented approximately 95% and 90% of the Company's total revenue for the three months ended March 31, 2023 and 2022 , respectively. Cost of revenue relating to two vendors represented approximately 28% of the Company’s total cost of revenue for the three months ended March 31, 2022. For the three months ended March 31 The Company believes it has access to alternative suppliers, with limited disruption to the business, should circumstances change with its existing suppliers. |
Liquidity (Tables)
Liquidity (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Liquidity [Member] | |
Liquidity [Line Items] | |
Summary of company's anticipation to convert the backlog to revenue over the period | 2023 Within 1 year $ 1,306,849 Total Backlog $ 1,306,849 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of disaggregation of revenues by categories | Three Months Ended March 31, Revenue by Customer Type 2023 2022 Construction and Engineering Services: Government $ — — % $ 39 — % Hotel 33,676 1 % 897,244 10 % Multi-Family (includes Single Family) — — % 77,626 1 % Office 5,470,259 99 % 728,875 8 % Retail — — % 5,344 1 % Special Use — — % 9,642 — % Subtotal 5,503,935 100 % 1,718,770 20 % Medical Revenue: Medical (lab testing, kit sales and equipment) — — % 6,885,828 80 % Total revenue by customer type $ 5,503,935 100 % $ 8,604,598 100 % |
Summary of combined financial position of equity affiliates | Condensed balance sheet information: March 31,2023 December 31,2022 (Unaudited) (Unaudited) Total assets $ 37,500,000 $ 37,500,000 Total liabilities $ 7,100,000 $ 7,100,000 Members’ equity $ 30,400,000 $ 30,400,000 |
Summary of estimated amortization expense of intangible assets | For the year ending December 31,: 2023 (remaining) $ 142,605 2024 190,271 2025 186,854 2026 169,519 2027 165,841 Thereafter 1,177,804 $ 2,032,894 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Accounts Receivable [Abstract] | |
Summary of accounts receivable | 2023 2022 Billed: Construction services $ 1,157,918 $ 1,310,456 Other receivable — 115,746 Total gross receivables 1,157,918 1,426,202 Less: allowance for credit losses (145,746 ) (145,746 ) Total net receivables $ 1,012,172 $ 1,280,456 |
Contract Assets and Contract _2
Contract Assets and Contract Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Contract Assets and Contract Liabilities [Abstract] | |
Summary of costs and estimated earnings on uncompleted contracts | 2023 2022 Costs incurred on uncompleted contracts $ 7,606,868 $ 13,730,177 Provision for loss on uncompleted contracts — — Estimated earnings to date on uncompleted contracts 657,694 (2,160,085 ) Gross contract assets 8,264,562 11,570,092 Less: billings to date (7,707,974 ) (11,970,979 ) Net contract liabilities on uncompleted contracts $ 556,588 $ (400,887 ) |
Summary of costs included in condensed consolidated balance sheets | 2023 2022 Contract assets $ 900,717 $ 36,384 Contract liabilities (344,129 ) (437,271 ) Net contract liabilities $ 556,588 $ (400,887 ) |
Property, plant and equipment (
Property, plant and equipment (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Property, plant and equipment [Abstract] | |
Schedule of company's equipment | 2023 2022 Computer equipment and software $ 94,530 $ 94,530 Furniture and other equipment 271,798 271,798 Leasehold improvements 17,280 17,280 Equipment and machinery 943,464 943,464 Automobiles 4,638 4,638 Building held for leases 196,416 196,416 Laboratory and temporary units 1,364,748 1,364,748 Land 1,190,655 1,190,655 Construction in progress 2,771,649 2,244,100 Property, plant and equipment 6,855,178 6,327,629 Less: accumulated depreciation (810,919 ) (718,726 ) Property, plant and equipment, net $ 6,044,259 $ 5,608,903 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Schedule of balance sheet information | Balance Sheet Location March 31, 2023 Operating Leases Right-of-use assets, net $ 2,396,732 Current liabilities Lease liability, current maturities 415,772 Non-current liabilities Lease liability, net of current maturities 2,004,630 Total operating lease liabilities $ 2,420,402 Finance Leases Right-of-use assets $ 1,793,584 Current liabilities Lease liability, current maturities 696,330 Non-current liabilities Lease liability, net of current maturities 804,691 Total finance lease liabilities $ 1,501,021 Weighted Average Remaining Lease Term Operating leases 6.80 years Finance leases 1.75 years Weighted Average Discount Rate Operating leases 3% Finance leases 3% |
Schedule of approximate minimum annual rental commitments under non-cancelable leases | Year Ending December 31: Operating Financing Total 2023 (remaining) $ 389,803 $ 608,122 $ 997,925 2024 523,722 801,869 1,325,591 2025 446,349 136,234 582,583 2026 207,379 — 207,379 2027 1,119,901 — 1,119,901 Thereafter — — — Total lease payments 2,687,154 1,546,225 4,233,379 Less: Imputed interest 266,753 45,204 311,957 Present value of lease liabilities $ 2,420,401 $ 1,501,021 $ 3,921,422 |
Construction Backlog (Tables)
Construction Backlog (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Schedule of backlog of signed construction and engineering contracts | 2023 2022 Balance - beginning of period $ 6,810,762 $ 3,217,909 New contracts and change orders during the period — 13,803,733 Adjustments and cancellations, net 22 1,086,301 Subtotal 6,810,784 18,107,943 Less: contract revenue earned during the period (5,503,935 ) (11,297,181 ) Balance - end of period $ 1,306,849 $ 6,810,762 |
Construction Backlog [Member] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Summary of company's anticipation to convert the backlog to revenue over the period | 2023 Within 1 year $ 1,306,849 1 to 2 years — Total Backlog $ 1,306,849 |
Segments and Disaggregated Re_2
Segments and Disaggregated Revenue (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segments and Disaggregated Revenue | Construction Medical Development Corporate and support Consolidated Fiscal Quarter Ended March 31, 2023 Revenue $ 5,503,935 $ — $ — $ — $ 5,503,935 Cost of revenue 5,573,407 — — — 5,573,407 Operating expenses 118,560 897 720,913 2,350,227 3,190,597 Operating loss (188,032 ) (897 ) (720,913 ) (2,350,227 ) ( 3,260,069 ) Other income (expense) 18,564 — (287,297 ) 9,362 (259,371 ) Income (loss) before income taxes (169,468 ) (897 ) (1,008,210 ) (2,340,865 ) (3,519,440 ) Net income attributable to non-controlling interest — — — — — Net income (loss) attributable to common stockholders of Safe & Green Holdings Corp. $ (169,468 ) $ (897 ) $ (1,008,210 ) $ (2,340,865 ) $ (3,519,440 ) Total assets $ 10,458,066 $ 4,581 $ 11,369,614 $ 6,608,514 $ 28,440,775 Depreciation and amortization $ 148,508 $ — $ — $ — $ 148,508 Capital expenditures $ 531,083 $ — $ — $ — $ 531,083 Construction Medical Development Corporate and support Consolidated Fiscal Quarter Ended March 31, 2022 Revenue $ 1,718,770 $ 6,885,828 $ — $ — $ 8,604,598 Cost of revenue 1,720,714 4,397,449 — — 6,118,163 Operating expenses 109,163 18,973 281,988 1,657,419 2,067,543 Operating income (loss) (111,107 ) 2,469,406 (281,988 ) (1,657,419 ) 418,892 Other income (expense) — — (40,000 ) 122,836 82,836 Income (loss) before income taxes (111,107 ) 2,469,406 (321,988 ) (1,534,583 ) 501,727 Net income attributable to non-controlling interest — 1,218,905 — — 1,218,905 Net income (loss) attributable to common stockholders of Safe & Green Holdings Corp. $ (111,107 ) $ 1,250,501 $ (321,988 ) $ (1,534,583 ) $ (717,178 ) Total assets $ 10,464,450 $ 4,857,366 $ 8,889,271 $ 13,752,110 $ 37,963,197 Depreciation and amortization $ 143,435 $ 263,169 $ 8,628 $ — $ 415,232 Capital expenditures $ 24,100 $ — $ 893,785 $ 4,980 $ 922,865 Inter-segment revenue elimination $ — $ 160,500 $ — $ (160,500 ) $ — |
Share-based Compensation (Table
Share-based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Stock Options and Grants [Abstract] | |
Schedule of stock-based compensation expense included in statement of operations | Three Months Ended March 31, 2023 2022 Payroll and related expenses $ 656,369 $ 649,090 Total $ 656,369 $ 649,090 |
Summary of fair value stock-based option awards granted using Black-Scholes option valuation model | Three Months Ended March 31, 2023 2022 Stock options $ — $ — Restricted Stock Units $ 656,369 $ 649,090 Total $ 656,369 $ 649,090 |
Summary of employee stock option activity | Shares Weighted Average Fair Value Per Share Weighted Average Exercise Price Per Share Weighted Average Remaining Terms (in years) Aggregate Intrinsic Value Outstanding – December 31, 2022 36,436 24.80 78.71 4.34 — Granted — — — — — Exercised — — — — — Cancelled — — — — — Outstanding – March 31, 2023 36,436 24.80 78.71 4.09 — Exercisable – December 31, 2022 36,436 24.80 78.71 4.34 — Exercisable – March 31, 2023 36,436 24.80 78.71 4.09 — |
Schedule of RSU activities | Number of Shares Non-vested balance at January 1, 2023 1,190,935 Granted — Vested (262,813 ) Forfeited/Expired — Non-vested balance at March 31, 2023 928,122 |
Description of Business (Detail
Description of Business (Details Textual) | 3 Months Ended |
Mar. 31, 2023 Segments | |
Description of Business (Textual) | |
Number of segments | 4 |
Liquidity (Details)
Liquidity (Details) | Mar. 31, 2023 USD ($) |
Liquidity [Line Items] | |
Total Backlog | $ 1,306,849 |
Within 1 year [Member] | |
Liquidity [Line Items] | |
Total Backlog | $ 1,306,849 |
Liquidity (Details Textual)
Liquidity (Details Textual) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Liquidity (Textual) | ||
Cash and cash equivalents | $ 1,452,501 | $ 582,776 |
Cash backlog | 1,306,849 | |
Working capital | $ 3,515,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Total revenue by customer type | $ 5,503,935 | $ 8,604,598 |
Total revenue by customer type, percentage | 100% | 100% |
Government Contract [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue by customer type | $ 39 | |
Total revenue by customer type, percentage | ||
Hotel [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue by customer type | $ 33,676 | $ 897,244 |
Total revenue by customer type, percentage | 1% | 10% |
Multi-Family (includes Single Family) [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue by customer type | $ 77,626 | |
Total revenue by customer type, percentage | 1% | |
Office [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue by customer type | $ 5,470,259 | $ 728,875 |
Total revenue by customer type, percentage | 99% | 8% |
Retail [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue by customer type | $ 5,344 | |
Total revenue by customer type, percentage | 1% | |
Special Use [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue by customer type | $ 9,642 | |
Total revenue by customer type, percentage | ||
Subtotal [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue by customer type | $ 5,503,935 | $ 1,718,770 |
Total revenue by customer type, percentage | 100% | 20% |
Medical [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue by customer type | $ 6,885,828 | |
Total revenue by customer type, percentage | 80% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details 1) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Equity Method Investment, Summarized Financial Information [Abstract] | ||
Total assets | $ 28,440,775 | $ 26,555,680 |
Total liabilities | 16,119,137 | 12,116,118 |
Members’ equity | 12,750,662 | 14,822,169 |
Affiliated Entity [Member] | ||
Equity Method Investment, Summarized Financial Information [Abstract] | ||
Total assets | 37,500,000 | 37,500,000 |
Total liabilities | 7,100,000 | 7,100,000 |
Members’ equity | $ 30,400,000 | $ 30,400,000 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details 2) | Mar. 31, 2023 USD ($) |
Accounting Policies [Abstract] | |
2023 (remaining) | $ 142,605 |
2024 | 190,271 |
2025 | 186,854 |
2026 | 169,519 |
2027 | 165,841 |
Thereafter | 1,177,804 |
Total | $ 2,032,894 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Details Textual) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 24, 2021 USD ($) | May 31, 2021 USD ($) | Aug. 27, 2020 shares | Oct. 26, 2016 shares | Mar. 31, 2023 USD ($) Customer | Mar. 31, 2022 USD ($) Customer | Dec. 31, 2021 USD ($) | Sep. 30, 2021 USD ($) | Jun. 30, 2021 USD ($) | Dec. 31, 2022 USD ($) Customer | Jul. 14, 2021 | May 10, 2021 USD ($) | |
Summary of Significant Accounting Policies (Textual) | ||||||||||||
Net loss attributable to noncontrolling interests | $ 1,218,905 | |||||||||||
Revenue related to other activities | $ 350,329 | |||||||||||
Inventories | 12,989 | $ 465,560 | ||||||||||
Goodwill impairment | $ 0 | 0 | ||||||||||
Estimated useful lives | 5 years | |||||||||||
Intangible assets trademarks | $ 97,164 | |||||||||||
Accumulated amortization | 1,027,082 | 857,554 | ||||||||||
Amortization expense | 46,119 | 41,823 | ||||||||||
Short-term investment | 0 | 0 | ||||||||||
Cash and cash equivalents | 1,452,501 | 582,776 | ||||||||||
Revenue recognized | $ 3,000,000 | $ 600,000 | 0 | 6,885,828 | ||||||||
Investment in and advances to equity affiliates | 25,000 | |||||||||||
Accounts receivable balance | 306,143 | |||||||||||
Reimbursement from licensee for project costs | 102,217 | |||||||||||
Deferred contract costs | 203,926 | |||||||||||
General and administrative expenses | 1,788,956 | 780,021 | ||||||||||
Revenue recognized at point in time | 0 | 6,885,828 | ||||||||||
Recognized over time | $ 5,503,935 | 1,718,770 | ||||||||||
Restricted stock or options issued, shares | shares | 200,000 | 25,000 | ||||||||||
No of operating cycles | one year | |||||||||||
Accumulated amortization related to deferred contract costs | $ 142,747 | |||||||||||
Original issue discount | 12% | |||||||||||
Held for sale assets | 4,400,361 | 4,396,826 | ||||||||||
Capital investment | 500,000 | |||||||||||
Project development costs | $ 824,231 | |||||||||||
Project development costs, book value | 4,400,361 | |||||||||||
Impairment | 0 | |||||||||||
Intangible assets for impairment losses | 0 | 0 | ||||||||||
Deferred contract costs, amortization expense | 10,196 | $ 10,196 | ||||||||||
JDI-Cumberland Inlet, LLC [Member] | ||||||||||||
Summary of Significant Accounting Policies (Textual) | ||||||||||||
Percentage of controlling interest | 10% | |||||||||||
Norman Berry II Owner LLC [Member] | ||||||||||||
Summary of Significant Accounting Policies (Textual) | ||||||||||||
Revenue recognized | $ 135,238 | $ 600,000 | $ 114,433 | |||||||||
Percentage of controlling interest | 50% | |||||||||||
SGB Development Corp. [Member] | ||||||||||||
Summary of Significant Accounting Policies (Textual) | ||||||||||||
Held for sale assets | $ 3,576,130 | |||||||||||
Proprietary Knowledge and Technology [Member] | ||||||||||||
Summary of Significant Accounting Policies (Textual) | ||||||||||||
Intangible assets | $ 2,766,000 | |||||||||||
Intangible asset, useful life | 20 years | |||||||||||
Website [Member] | ||||||||||||
Summary of Significant Accounting Policies (Textual) | ||||||||||||
Intangible assets | $ 196,812 | |||||||||||
Intangible asset, useful life | 5 years | |||||||||||
Minimum [Member] | ||||||||||||
Summary of Significant Accounting Policies (Textual) | ||||||||||||
Operating Cycle | 6 months | |||||||||||
Maximum [Member] | ||||||||||||
Summary of Significant Accounting Policies (Textual) | ||||||||||||
Operating Cycle | 12 months | |||||||||||
Computer and software [Member] | Minimum [Member] | ||||||||||||
Summary of Significant Accounting Policies (Textual) | ||||||||||||
Estimated useful lives | 3 years | |||||||||||
Computer and software [Member] | Maximum [Member] | ||||||||||||
Summary of Significant Accounting Policies (Textual) | ||||||||||||
Estimated useful lives | 5 years | |||||||||||
Equipment [Member] | Minimum [Member] | ||||||||||||
Summary of Significant Accounting Policies (Textual) | ||||||||||||
Estimated useful lives | 5 years | |||||||||||
Equipment [Member] | Maximum [Member] | ||||||||||||
Summary of Significant Accounting Policies (Textual) | ||||||||||||
Estimated useful lives | 29 years | |||||||||||
Automobiles [Member] | Minimum [Member] | ||||||||||||
Summary of Significant Accounting Policies (Textual) | ||||||||||||
Estimated useful lives | 2 years | |||||||||||
Automobiles [Member] | Maximum [Member] | ||||||||||||
Summary of Significant Accounting Policies (Textual) | ||||||||||||
Estimated useful lives | 5 years | |||||||||||
Building [Member] | Minimum [Member] | ||||||||||||
Summary of Significant Accounting Policies (Textual) | ||||||||||||
Estimated useful lives | 5 years | |||||||||||
Building [Member] | Maximum [Member] | ||||||||||||
Summary of Significant Accounting Policies (Textual) | ||||||||||||
Estimated useful lives | 7 years | |||||||||||
Furniture and other equipment [Member] | Minimum [Member] | ||||||||||||
Summary of Significant Accounting Policies (Textual) | ||||||||||||
Estimated useful lives | 5 years | |||||||||||
Furniture and other equipment [Member] | Maximum [Member] | ||||||||||||
Summary of Significant Accounting Policies (Textual) | ||||||||||||
Estimated useful lives | 7 years | |||||||||||
Construction Materials [Member] | ||||||||||||
Summary of Significant Accounting Policies (Textual) | ||||||||||||
Inventories | $ 12,989 | $ 465,560 | ||||||||||
Accounts receivable [Member] | Customer two [Member] | ||||||||||||
Summary of Significant Accounting Policies (Textual) | ||||||||||||
Number of customers | Customer | 2 | |||||||||||
Concentration risk, percentage | 80% | |||||||||||
Accounts receivable [Member] | Customer three [Member] | ||||||||||||
Summary of Significant Accounting Policies (Textual) | ||||||||||||
Number of customers | Customer | 3 | |||||||||||
Concentration risk, percentage | 80% | |||||||||||
Revenue [Member] | Customer one [Member] | ||||||||||||
Summary of Significant Accounting Policies (Textual) | ||||||||||||
Number of customers | Customer | 1 | |||||||||||
Concentration risk, percentage | 95% | |||||||||||
Revenue [Member] | Customer two [Member] | ||||||||||||
Summary of Significant Accounting Policies (Textual) | ||||||||||||
Number of customers | Customer | 2 | |||||||||||
Concentration risk, percentage | 90% | |||||||||||
Cost of revenue [Member] | Vendors [Member] | ||||||||||||
Summary of Significant Accounting Policies (Textual) | ||||||||||||
Number of vendors | Customer | 0 | 2 | ||||||||||
Concentration risk, percentage | 10% | 28% |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Summary of accounts receivable | ||
Total gross receivables | $ 1,157,918 | $ 1,426,202 |
Less: allowance for credit losses | (145,746) | (145,746) |
Total net receivables | 1,012,172 | 1,280,456 |
Construction services [Member] | ||
Summary of accounts receivable | ||
Total gross receivables | 1,157,918 | 1,310,456 |
Other receivable [Member] | ||
Summary of accounts receivable | ||
Total gross receivables | $ 115,746 |
Contract Assets and Contract _3
Contract Assets and Contract Liabilities (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Costs and estimated earnings on uncompleted contracts | ||
Costs incurred on uncompleted contracts | $ 7,606,868 | $ 13,730,177 |
Provision for loss on uncompleted contracts | ||
Estimated earnings to date on uncompleted contracts | 657,694 | (2,160,085) |
Gross contract assets | 8,264,562 | 11,570,092 |
Less: billings to date | (7,707,974) | (11,970,979) |
Net contract liabilities on uncompleted contracts | $ 556,588 | $ (400,887) |
Contract Assets and Contract _4
Contract Assets and Contract Liabilities (Details 1) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Costs and estimated earnings amounts on uncompleted contracts included in balance sheets | ||
Contract assets | $ 900,717 | $ 36,384 |
Contract liabilities | (344,129) | (437,271) |
Net contract liabilities | $ 556,588 | $ (400,887) |
Property, plant and equipment_2
Property, plant and equipment (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Schedule of company's equipment | ||
Property, plant and equipment | $ 6,855,178 | $ 6,327,629 |
Less: accumulated depreciation | (810,919) | (718,726) |
Property, plant and equipment, net | 6,044,259 | 5,608,903 |
Automobiles [Member] | ||
Schedule of company's equipment | ||
Property, plant and equipment | 4,638 | 4,638 |
Computer equipment and software [Member] | ||
Schedule of company's equipment | ||
Property, plant and equipment | 94,530 | 94,530 |
Furniture and other equipment [Member] | ||
Schedule of company's equipment | ||
Property, plant and equipment | 271,798 | 271,798 |
Leasehold Improvements [Member] | ||
Schedule of company's equipment | ||
Property, plant and equipment | 17,280 | 17,280 |
Equipment and machinery [Member] | ||
Schedule of company's equipment | ||
Property, plant and equipment | 943,464 | 943,464 |
Building held for leases [Member] | ||
Schedule of company's equipment | ||
Property, plant and equipment | 196,416 | 196,416 |
Laboratory and temporary units [Member] | ||
Schedule of company's equipment | ||
Property, plant and equipment | 1,364,748 | 1,364,748 |
Land [Member] | ||
Schedule of company's equipment | ||
Property, plant and equipment | 1,190,655 | 1,190,655 |
Construction in progress [Member] | ||
Schedule of company's equipment | ||
Property, plant and equipment | $ 2,771,649 | $ 2,244,100 |
Property, plant and equipment_3
Property, plant and equipment (Details Textual) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Property, plant and equipment (Textual) | ||
Depreciation expense | $ 92,193 | $ 104,825 |
Notes Receivable (Details Textu
Notes Receivable (Details Textual) - USD ($) | 1 Months Ended | |||
May 31, 2020 | Apr. 30, 2020 | Jan. 21, 2020 | Dec. 31, 2022 | |
Notes Receivable (Textual) | ||||
Maturity date | May 05, 2025 | |||
Company Note [Member] | ||||
Notes Receivable (Textual) | ||||
Advances in note receivable | $ 250,000 | |||
Interest rate | 5% | |||
Loaned amount | $ 250,000 | |||
Principal amount | $ 100,000 | |||
Galvin Note [Member] | ||||
Notes Receivable (Textual) | ||||
Principal amount | $ 100,000 | |||
Notes Receivable [Member] | ||||
Notes Receivable (Textual) | ||||
Interest rate | 5% | |||
Maturity date | Jul. 31, 2023 | Jul. 31, 2023 | ||
Notes Receivable [Member] | Company Note [Member] | ||||
Notes Receivable (Textual) | ||||
Advances in note receivable | $ 400,000 | |||
Loaned amount | 400,000 | |||
Notes Receivable [Member] | Galvin Note [Member] | ||||
Notes Receivable (Textual) | ||||
Advances in note receivable | 100,000 | |||
Loaned amount | $ 100,000 |
Notes Payable (Details Textual)
Notes Payable (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | ||||||||||
Feb. 07, 2023 | Sep. 08, 2022 | Aug. 31, 2022 | Jul. 14, 2021 | Oct. 29, 2021 | May 31, 2020 | Aug. 31, 2019 | Jun. 30, 2017 | Oct. 26, 2016 | Mar. 31, 2023 | Mar. 31, 2022 | Oct. 31, 2021 | |
Note Payable (Textual) | ||||||||||||
Principal amount | $ 2,000,000 | |||||||||||
Interest rate | 12% | |||||||||||
Maturity date | May 05, 2025 | |||||||||||
Net loan proceeds | $ 1,948,234 | |||||||||||
Capitalized in interest charges | $ 20,000 | |||||||||||
Prepayment penalty due, percentage | 0.50% | |||||||||||
Short-term note term | 1 year | |||||||||||
Value of renovation improvements | $ 750,000 | |||||||||||
Principal amount of promissory note | $ 750,000 | |||||||||||
Debt issuance costs, net | $ 4,134 | |||||||||||
Proceeds from short-term note payable | $ 500,000 | |||||||||||
Issuance of Successor common stock, shares | 45,000 | 3,625,000 | ||||||||||
Exercise period | 5 years | |||||||||||
Amortization of Debt Issuance Costs | 169,040 | $ 8,628 | ||||||||||
Peak Warrant [Member] | ||||||||||||
Note Payable (Textual) | ||||||||||||
Maturity date | Jun. 21, 2023 | |||||||||||
Fair value of warrants | $ 63,796 | |||||||||||
Private Placement [Member] | ||||||||||||
Note Payable (Textual) | ||||||||||||
Interest rate | 18% | |||||||||||
Conversion of stock, shares converted | 2,760,675 | |||||||||||
Debt Instrument, Convertible, Conversion Price, Decrease | $ 0.4 | |||||||||||
Debt instrument, redemption price, percentage | 110% | |||||||||||
Maximum ownership interest after redemption | 4.99% | |||||||||||
Period for delivery of notice | 61 days | |||||||||||
Adjusted maximum ownership interest | 9.99% | |||||||||||
Proceeds from issuance of long term debt | $ 1,000,000 | |||||||||||
Maximum number of days t o inform debenture holder | 2 days | |||||||||||
Percentage of proceeds from issuance of long term debt | 50% | |||||||||||
Maximum number of days to obtain shareholder approval | 60 days | |||||||||||
Percentage of common stock | 19.99% | |||||||||||
Debt issuance costs | 80,000 | |||||||||||
Fair value of restricted units | 76,000 | |||||||||||
Amortization of Debt Issuance Costs | 13,333 | |||||||||||
Amortization of debt discount | 75,706 | |||||||||||
Debt instrument unamortized debt issuance costs | 66,667 | |||||||||||
Net of debenture discount | 704,167 | |||||||||||
Fair value of warrants | 278,239 | |||||||||||
Private Placement [Member] | Peak Warrant [Member] | ||||||||||||
Note Payable (Textual) | ||||||||||||
Debt instrument, convertible, conversion price | $ 2.25 | |||||||||||
Exercise period | 5 years | |||||||||||
Private Placement [Member] | Peak One Opportunity Fund Lp [Member] | Restricted Stock [Member] | ||||||||||||
Note Payable (Textual) | ||||||||||||
Issuance of Successor common stock, shares | 50,000 | |||||||||||
Private Placement [Member] | Peak One Opportunity Fund Lp [Member] | Warrants [Member] | ||||||||||||
Note Payable (Textual) | ||||||||||||
Shares of common stock | 500,000 | |||||||||||
Private Placement [Member] | Peak One Opportunity Fund Lp [Member] | Warrants [Member] | Peak Warrant [Member] | ||||||||||||
Note Payable (Textual) | ||||||||||||
Shares of common stock | 500,000 | |||||||||||
Notes Payable, Other Payables [Member] | ||||||||||||
Note Payable (Textual) | ||||||||||||
Principal amount of promissory note | $ 5,000,000 | |||||||||||
Bear interest | 8% | |||||||||||
Debt instrument, description | five and 50/100 percent (5.50%), currently equaling 13.5%; provided that in no event will the interest rate be less than a floor rate of 13.5%. | |||||||||||
Debt issuance costs | $ 406,825 | |||||||||||
Prepaid interest | $ 675,000 | |||||||||||
Notes Payable, Other Payables [Member] | SGB Development Corp. [Member] | ||||||||||||
Note Payable (Textual) | ||||||||||||
Principal amount | $ 148,300 | |||||||||||
Maturity date | Sep. 01, 2023 | |||||||||||
Prepayment penalty due, percentage | 9.75% | |||||||||||
Convertible Debt [Member] | Private Placement [Member] | ||||||||||||
Note Payable (Textual) | ||||||||||||
Principal amount | $ 1,100,000 | |||||||||||
Short-term note term | 12 months | |||||||||||
Bear interest | 8% | |||||||||||
Debt Instrument, Convertible, Conversion Price, Decrease | $ 0.4 | |||||||||||
Debt instrument, convertible, conversion price | $ 1.5 | |||||||||||
Convertible Debt [Member] | Private Placement [Member] | Peak One Opportunity Fund Lp [Member] | Restricted Stock [Member] | ||||||||||||
Note Payable (Textual) | ||||||||||||
Proceeds from original issue discount | $ 1,000,000 | |||||||||||
Convertible Debt [Member] | Private Placement [Member] | Peak One Opportunity Fund Lp [Member] | Warrants [Member] | ||||||||||||
Note Payable (Textual) | ||||||||||||
Bear interest | 8% | |||||||||||
Securities Purchase Agreement [Member] | Private Placement [Member] | Peak One Opportunity Fund Lp [Member] | ||||||||||||
Note Payable (Textual) | ||||||||||||
Debt issuance costs | $ 15,000 | |||||||||||
Securities Purchase Agreement [Member] | Convertible Debt [Member] | Private Placement [Member] | Peak One Opportunity Fund Lp [Member] | ||||||||||||
Note Payable (Textual) | ||||||||||||
Original issue discount rate | 10% |
Leases (Details)
Leases (Details) | Mar. 31, 2023 USD ($) |
Operating Leases | |
Right-of-use assets, net | $ 2,396,732 |
Current liabilities | 415,772 |
Non-current liabilities | 2,004,630 |
Total operating lease liabilities | 2,420,402 |
Finance Leases | |
Right-of-use assets | 1,793,584 |
Current liabilities | 696,330 |
Non-current liabilities | 804,691 |
Total finance lease liabilities | $ 1,501,021 |
Weighted Average Remaining Lease Term | |
Operating leases | 6 years 9 months 18 days |
Finance leases | 1 year 9 months |
Weighted Average Discount Rate | |
Operating leases | 3% |
Finance leases | 3% |
Leases (Details 1)
Leases (Details 1) | Mar. 31, 2023 USD ($) |
Leases [Abstract] | |
2023 (remaining) | $ 997,925 |
2024 | 1,325,591 |
2025 | 582,583 |
2026 | 207,379 |
2027 | 1,119,901 |
Thereafter | |
Total lease payments | 4,233,379 |
Less: Imputed interest | 311,957 |
Present value of lease liabilities | 3,921,422 |
Operating | |
2023 (remaining) | 389,803 |
2024 | 523,722 |
2025 | 446,349 |
2026 | 207,379 |
2027 | 1,119,901 |
Thereafter | |
Total lease payments | 2,687,154 |
Less: Imputed interest | 266,753 |
Present value of lease liabilities | 2,420,401 |
Financing | |
2023 (remaining) | 608,122 |
2024 | 801,869 |
2025 | 136,234 |
2026 | |
2027 | |
Thereafter | |
Total lease payments | 1,546,225 |
Less: Imputed interest | 45,204 |
Present value of lease liabilities | $ 1,501,021 |
Leases (Details Textual)
Leases (Details Textual) | Mar. 31, 2023 |
Minimum [Member] | |
Lessee, Lease, Description [Line Items] | |
CAT lease term | 1 year |
Maximum [Member] | |
Lessee, Lease, Description [Line Items] | |
CAT lease term | 10 years |
Net Income (Loss) Per Share (De
Net Income (Loss) Per Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Restricted Stock Units [Member] | ||
Net Income (Loss) Per Share (Textual) | ||
Warrants to purchase shares of common stock | 1,190,935 | 2,245,186 |
Stock options [Member] | ||
Net Income (Loss) Per Share (Textual) | ||
Warrants to purchase shares of common stock | 36,436 | 36,436 |
Warrants [Member] | ||
Net Income (Loss) Per Share (Textual) | ||
Warrants to purchase shares of common stock | 2,525,020 | 2,025,520 |
Construction Backlog (Details)
Construction Backlog (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Construction Backlog [Abstract] | ||
Balance - beginning of period | $ 6,810,762 | $ 3,217,909 |
New contracts and change orders during the period | 13,803,733 | |
Adjustments and cancellations, net | 22 | 1,086,301 |
Subtotal | 6,810,784 | 18,107,943 |
Less: contract revenue earned during the period | (5,503,935) | (11,297,181) |
Balance - end of period | $ 1,306,849 | $ 6,810,762 |
Construction Backlog (Details 1
Construction Backlog (Details 1) | Mar. 31, 2023 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total Backlog | $ 1,306,849 |
Within 1 year [Member] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total Backlog | 1,306,849 |
1 to 2 years [Member] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total Backlog |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) | 1 Months Ended | 3 Months Ended | ||||||
Feb. 07, 2023 | Oct. 25, 2021 | Apr. 19, 2019 | Aug. 31, 2019 | Oct. 26, 2016 | Mar. 31, 2023 | Dec. 31, 2022 | Oct. 31, 2021 | |
Stockholders' Equity (Textual) | ||||||||
Issuance of Successor common stock, shares | 45,000 | 3,625,000 | ||||||
Common stock, per share | $ 17 | |||||||
Debt issuance costs, net | $ 4,134 | |||||||
Issuance of common stock for services | $ 437,325 | |||||||
Issuance of common stock for services, Shares | 287,512 | |||||||
Gross proceeds | $ 11,550,000 | |||||||
Offering expenses | $ 10,500,000 | |||||||
Common stock, shares authorized | 25,000,000 | 25,000,000 | ||||||
Exercise period | 5 years | |||||||
Issue of shares of common stock for previously vested restricted stock units | 1,351,097 | |||||||
Pre-Funded Warrant Shares [Member] | ||||||||
Stockholders' Equity (Textual) | ||||||||
Issued warrants | 2,189,384 | |||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.001 | |||||||
Series A Warrants [Member] | ||||||||
Stockholders' Equity (Textual) | ||||||||
Issued warrants | 1,898,630 | |||||||
Common Stock Warrants [Member] | ||||||||
Stockholders' Equity (Textual) | ||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 4.8 | |||||||
Exercise period | 5 years | |||||||
Purchase Agreement [Member] | ||||||||
Stockholders' Equity (Textual) | ||||||||
Issuance of Successor common stock, shares | 42,388 | |||||||
Common stock, per share | $ 22 | |||||||
Issuance costs of offering | $ 379,816 | |||||||
Warrants to purchase of common stock | 4,239 | |||||||
Equity purchase agreement [Member] | ||||||||
Stockholders' Equity (Textual) | ||||||||
Issuance of Successor common stock, shares | 75,000 | |||||||
Maximum commitment amount under equity purchase agreement | $ 10,000,000 | |||||||
Percentage of average daily trading value | 200% | |||||||
Maximum number of days for filing of registration statement | 60 days | |||||||
Period of after which obligation to buy common stock begins under equity purchase agreement | 36 months | |||||||
Percentage of equity market price | 97% | |||||||
Equity purchase agreement [Member] | Maximum [Member] | ||||||||
Stockholders' Equity (Textual) | ||||||||
Amount of put notice under equity purchase agreement | $ 750,000 | |||||||
Equity purchase agreement [Member] | Minimum [Member] | ||||||||
Stockholders' Equity (Textual) | ||||||||
Amount of put notice under equity purchase agreement | $ 25,000 | |||||||
IPO [Member] | ||||||||
Stockholders' Equity (Textual) | ||||||||
Issuance of Successor common stock, shares | 2,250 | |||||||
Common Stock Issued Under Underwriting Agreement [Member] | ||||||||
Stockholders' Equity (Textual) | ||||||||
Issuance costs of offering | $ 181,695 | |||||||
Private Placement [Member] | ||||||||
Stockholders' Equity (Textual) | ||||||||
Percentage of gross proceeds from placement cash free | 7% | |||||||
Percentage of non-accountable expense allowance of gross proceeds from placement | 0.50% | |||||||
Reimbursed placement agent’s expenses | $ 50,000 | |||||||
Common Stock [Member] | ||||||||
Stockholders' Equity (Textual) | ||||||||
Issuance of Successor common stock, shares | 975,000 |
Segments and Disaggregated Re_3
Segments and Disaggregated Revenue (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Segments and Disaggregated Revenue | |||
Revenue | $ 5,503,935 | $ 8,604,598 | |
Cost of revenue | 5,573,407 | 6,118,163 | |
Operating expenses | 3,190,597 | 2,067,543 | |
Operating income (loss) | (3,260,069) | 418,892 | |
Other income (expense) | (259,371) | 82,836 | |
Loss before income taxes | (3,519,440) | 501,728 | |
Net income attributable to non-controlling interest | (1,218,905) | ||
Net loss attributable to common stockholders of Safe & Green Holdings Corp. | (3,519,440) | (717,177) | |
Total assets | 28,440,775 | $ 26,555,680 | |
Capital expenditures | 531,083 | 922,865 | |
Operating Segments [Member] | |||
Segments and Disaggregated Revenue | |||
Revenue | 5,503,935 | 8,604,598 | |
Cost of revenue | 5,573,407 | 6,118,163 | |
Operating expenses | 3,190,597 | 2,067,543 | |
Operating income (loss) | (3,260,069) | 418,892 | |
Other income (expense) | (259,371) | 82,836 | |
Loss before income taxes | (3,519,440) | 501,727 | |
Net income attributable to non-controlling interest | 1,218,905 | ||
Net loss attributable to common stockholders of Safe & Green Holdings Corp. | (3,519,440) | (717,178) | |
Total assets | 28,440,775 | 37,963,197 | |
Depreciation and amortization | 148,508 | 415,232 | |
Capital expenditures | 531,083 | 922,865 | |
Operating Segments [Member] | Construction [Member] | |||
Segments and Disaggregated Revenue | |||
Revenue | 5,503,935 | 1,718,770 | |
Cost of revenue | 5,573,407 | 1,720,714 | |
Operating expenses | 118,560 | 109,163 | |
Operating income (loss) | (188,032) | (111,107) | |
Other income (expense) | 18,564 | ||
Loss before income taxes | (169,468) | (111,107) | |
Net income attributable to non-controlling interest | |||
Net loss attributable to common stockholders of Safe & Green Holdings Corp. | (169,468) | (111,107) | |
Total assets | 10,458,066 | 10,464,450 | |
Depreciation and amortization | 148,508 | 143,435 | |
Capital expenditures | 531,083 | 24,100 | |
Operating Segments [Member] | Medical [Member] | |||
Segments and Disaggregated Revenue | |||
Revenue | 6,885,828 | ||
Cost of revenue | 4,397,449 | ||
Operating expenses | 897 | 18,973 | |
Operating income (loss) | (897) | 2,469,406 | |
Other income (expense) | |||
Loss before income taxes | (897) | 2,469,406 | |
Net income attributable to non-controlling interest | 1,218,905 | ||
Net loss attributable to common stockholders of Safe & Green Holdings Corp. | (897) | 1,250,501 | |
Total assets | 4,581 | 4,857,366 | |
Depreciation and amortization | 263,169 | ||
Capital expenditures | |||
Operating Segments [Member] | Development [Member] | |||
Segments and Disaggregated Revenue | |||
Revenue | |||
Cost of revenue | |||
Operating expenses | 720,913 | 281,988 | |
Operating income (loss) | (720,913) | (281,988) | |
Other income (expense) | (287,297) | (40,000) | |
Loss before income taxes | (1,008,210) | (321,988) | |
Net income attributable to non-controlling interest | |||
Net loss attributable to common stockholders of Safe & Green Holdings Corp. | (1,008,210) | (321,988) | |
Total assets | 11,369,614 | 8,889,271 | |
Depreciation and amortization | 8,628 | ||
Capital expenditures | 893,785 | ||
Operating Segments [Member] | Corporate and support [Member] | |||
Segments and Disaggregated Revenue | |||
Revenue | |||
Cost of revenue | |||
Operating expenses | 2,350,227 | 1,657,419 | |
Operating income (loss) | (2,350,227) | (1,657,419) | |
Other income (expense) | 9,362 | 122,836 | |
Loss before income taxes | (2,340,865) | (1,534,583) | |
Net income attributable to non-controlling interest | |||
Net loss attributable to common stockholders of Safe & Green Holdings Corp. | (2,340,865) | (1,534,583) | |
Total assets | 6,608,514 | 13,752,110 | |
Depreciation and amortization | |||
Capital expenditures | 4,980 | ||
Intersegment Eliminations [Member] | |||
Segments and Disaggregated Revenue | |||
Revenue | |||
Intersegment Eliminations [Member] | Construction [Member] | |||
Segments and Disaggregated Revenue | |||
Revenue | |||
Intersegment Eliminations [Member] | Medical [Member] | |||
Segments and Disaggregated Revenue | |||
Revenue | 160,500 | ||
Intersegment Eliminations [Member] | Development [Member] | |||
Segments and Disaggregated Revenue | |||
Revenue | |||
Intersegment Eliminations [Member] | Corporate and support [Member] | |||
Segments and Disaggregated Revenue | |||
Revenue | $ (160,500) |
Warrants (Details)
Warrants (Details) - USD ($) | 1 Months Ended | ||||||
Feb. 28, 2023 | Oct. 31, 2021 | May 31, 2020 | Aug. 31, 2019 | Apr. 30, 2019 | Jun. 30, 2017 | Mar. 31, 2023 | |
Warrants (Textual) | |||||||
Aggregate purchase warrants | 1,898,630 | 300,000 | |||||
Common stock exercise price | $ 4.8 | $ 3.14 | $ 0 | ||||
Maturity date | May 05, 2025 | ||||||
Warrants, Term | 5 years | ||||||
October 29, 2019 and expire October 29, 2024 [Member] | |||||||
Warrants (Textual) | |||||||
Aggregate purchase warrants | 42,388 | ||||||
Common stock exercise price | $ 27.5 | ||||||
Maturity date | Oct. 29, 2024 | ||||||
October 29, 2019 and expire April 24, 2024 [Member] | |||||||
Warrants (Textual) | |||||||
Aggregate purchase warrants | 4,239 | ||||||
Common stock exercise price | $ 27.5 | ||||||
Maturity date | Apr. 24, 2024 | ||||||
February 1, 2020 and expire August 29, 2024 [Member] | |||||||
Warrants (Textual) | |||||||
Aggregate purchase warrants | 2,250 | ||||||
Common stock exercise price | $ 21.25 | ||||||
Maturity date | Aug. 29, 2024 | ||||||
June 21, 2018 and expire June 21, 2023 [Member] | |||||||
Warrants (Textual) | |||||||
Aggregate purchase warrants | 4,313 | ||||||
Common stock exercise price | $ 125 | ||||||
Fair value of warrants | $ 63,796 | ||||||
Maturity date | Jun. 21, 2023 | ||||||
Peak Warrant [Member] | |||||||
Warrants (Textual) | |||||||
Debt Instrument, Convertible, Conversion Price, Decrease | $ 0.4 | ||||||
Fair value of warrants | $ 278,239 | ||||||
Shares of common stock | 500,000 | ||||||
Warrants, Term | 5 years | ||||||
Debt Instrument, Convertible, Conversion Price | $ 2.25 |
Share-based Compensation (Detai
Share-based Compensation (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Stock-Based Compensation Expense | ||
Total | $ 656,369 | $ 649,090 |
Share-based Payment Arrangement [Member] | ||
Stock-Based Compensation Expense | ||
Total | 656,369 | 649,090 |
Share-based Payment Arrangement [Member] | Stock options [Member] | ||
Stock-Based Compensation Expense | ||
Total | ||
Share-based Payment Arrangement [Member] | Restricted Stock Units [Member] | ||
Stock-Based Compensation Expense | ||
Total | 656,369 | 649,090 |
Share-based Payment Arrangement [Member] | Payroll and related expenses [Member] | ||
Stock-Based Compensation Expense | ||
Total | $ 656,369 | $ 649,090 |
Share-based Compensation (Det_2
Share-based Compensation (Details 1) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Shares Outstanding, Beginning balance | 36,436 | |
Shares, Granted | ||
Shares, Exercised | ||
Shares, Cancelled | ||
Shares Outstanding, Ending balance | 36,436 | 36,436 |
Shares, Exercisable | 36,436 | 36,436 |
Weighted Average Fair Value Per Share, Outstanding, Beginning balance | $ 24.8 | |
Weighted Average Fair Value Per Share, Granted | ||
Weighted Average Fair Value Per Share, Exercised | ||
Weighted Average Fair Value Per Share, Cancelled | ||
Weighted Average Fair Value Per Share, Outstanding, Ending balance | 24.8 | $ 24.8 |
Weighted Average Fair Value Per Share, Exercisable | 24.8 | 24.8 |
Weighted Average Exercise Price Per Share, Outstanding, Beginning balance | 78.71 | |
Weighted Average Exercise Price Per Share, Granted | ||
Weighted Average Exercise Price Per Share, Exercised | ||
Weighted Average Exercise Price Per Share, Cancelled | ||
Weighted Average Exercise Price Per Share, Outstanding, Ending balance | 78.71 | 78.71 |
Weighted Average Exercise Price Per Share, Exercisable | $ 78.71 | $ 78.71 |
Weighted Average Remaining Terms (in years), Outstanding, Beginning balance | 4 years 1 month 2 days | 4 years 4 months 2 days |
Weighted Average Remaining Terms (in years), Outstanding, Ending balance | 4 years 1 month 2 days | |
Weighted Average Remaining Terms (in years), Exercisable | 4 years 4 months 2 days | |
Aggregate Intrinsic Value, Outstanding, Beginning balance | ||
Aggregate Intrinsic Value, Outstanding, Ending balance | ||
Aggregate Intrinsic Value, Exercisable |
Share-based Compensation (Det_3
Share-based Compensation (Details 2) | 3 Months Ended |
Mar. 31, 2023 shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Number of Shares, Non-vested beginning | 1,190,935 |
Number of Shares, Granted | |
Number of Shares, Vested | (262,813) |
Number of Shares, Forfeited/Expired | |
Number of Shares, Non-vested ending | 928,122 |
Share-based Compensation (Det_4
Share-based Compensation (Details Textual) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
Nov. 18, 2022 Director $ / shares shares | Aug. 27, 2020 shares | Aug. 31, 2019 shares | Oct. 26, 2016 shares | Mar. 31, 2023 USD ($) $ / shares shares | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) Employee $ / shares shares | Oct. 31, 2021 $ / shares | May 31, 2020 $ / shares | |
Stock Options and Grants (Textual) | |||||||||
Stock-based compensation | $ | $ 656,369 | $ 649,090 | |||||||
Restricted stock or options issued, shares | shares | 200,000 | 25,000 | |||||||
Common stock available for issuance, shares | shares | 376,060 | ||||||||
Recognized stock-based compensation expense | $ | $ 0 | $ 0 | |||||||
Unrecognized compensation costs | $ | |||||||||
Average share price | $ / shares | $ 0 | $ 4.8 | $ 3.14 | ||||||
Shares, Granted | shares | |||||||||
Unrecognized compensation costs | $ | $ 1,602,133 | ||||||||
Award granted (in shares) | shares | |||||||||
Stock Issued During Period, Shares, New Issues | shares | 45,000 | 3,625,000 | |||||||
Restricted Stock [Member] | |||||||||
Stock Options and Grants (Textual) | |||||||||
Stock-based compensation | $ | $ 656,369 | $ 649,090 | |||||||
Restricted Stock Units (RSUs) [Member] | |||||||||
Stock Options and Grants (Textual) | |||||||||
Fair value of restricted units | $ | $ 1,843,000 | ||||||||
Non-employee director [Member] | Restricted Stock Units (RSUs) [Member] | |||||||||
Stock Options and Grants (Textual) | |||||||||
Vesting Period | 2 years | ||||||||
Number of employees | Employee | 7 | ||||||||
Paul Galvin and Seven Employees [Member] | Restricted Stock Units (RSUs) [Member] | |||||||||
Stock Options and Grants (Textual) | |||||||||
Shares, Granted | shares | 1,045,000 | ||||||||
Share-Based Payment Arrangement, Option, Exercise Price Range, Lower Range Limit | $ / shares | $ 1.3 | ||||||||
Share-Based Payment Arrangement, Option, Exercise Price Range, Upper Range Limit | $ / shares | $ 2.24 | ||||||||
Four Non-Employee Directors [Member] | Restricted Stock Units (RSUs) [Member] | |||||||||
Stock Options and Grants (Textual) | |||||||||
Shares, Granted | shares | 80,000 | ||||||||
Exercise price | $ / shares | $ 1.3 | ||||||||
Vesting Period | 2 years | ||||||||
Number of employees | Director | 4 | ||||||||
Stock-Based Option [Member] | |||||||||
Stock Options and Grants (Textual) | |||||||||
Stock-based compensation | $ | $ 0 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 1 Months Ended | ||||||||
Apr. 14, 2021 | Apr. 13, 2020 Number | Feb. 11, 2020 USD ($) | Jun. 21, 2019 USD ($) | Jan. 01, 2019 USD ($) | Sep. 12, 2018 USD ($) | Apr. 30, 2021 | Jul. 05, 2022 USD ($) | Jul. 26, 2021 USD ($) | |
Other Commitments [Line Items] | |||||||||
Damages value | $ 2,861,401.66 | $ 761,401.66 | |||||||
Recovery of damages | $ 67,125.83 | ||||||||
Description of commitments | provide for an annual base salary of $400,000 provide for a performance bonus structure for a bonus of up to 50% of base salary upon the Company’s achievement of $2,000,000 EBITDA and additional performance bonus payments for the achievement of EBITDA in excess of $2,000,000 based on a percentage of the incremental increase in EBITDA (ranging from 10% of the incremental increase in EBITDA if the Company achieves over $2,000,000 and up to $7,000,000 in EBITDA, 8% of the incremental increase in EBITDA if the Company achieves over $7,000,000 and up to $12,000,000 in EBITDA and 3% of the incremental increase in EBITDA over $12,000,000), provide for a profits-based additional bonus of up to $250,000 in certain limited circumstances, and provide for one (1) year severance, plus a pro-rated amount of any unpaid bonus earned by him during the year as verified by the Company’s principal financial officer, if Mr. Galvin is terminated without cause. At the Company’s option, up to fifty (50%) percent of the EBITDA performance bonuses may be paid in restricted stock units if then available for grant under the Company’s Incentive Plan. | ||||||||
Unpaid wages | $ 30,428.71 | ||||||||
Payment of annual salary | $ 500,000 | ||||||||
Teton Buildings, LLC [Member] | |||||||||
Other Commitments [Line Items] | |||||||||
Damages value | $ 2,100,000 | ||||||||
Osang Healthcare Company Ltd [Member] | |||||||||
Other Commitments [Line Items] | |||||||||
Description of commitments | The Company has asserted that Osang materially breached a certain Managed Supply Agreement (“MSA”) entered into between the parties on October 12, 2020, pursuant to which the Company received on consignment two million (2,000,000) units of Osang’s “Genefinder Plus RealAmp Covid-19 PCR Test” (the “Covid-19 Test”) for domestic and international distribution. The Company has also asserted that Osang breached the covenant of good faith and fair dealing, fraudulently induced it to enter into the MSA, and violated §349 of the New York General Business Law’s prohibition of deceptive business practices. | ||||||||
HOLA Defendants | |||||||||
Other Commitments [Line Items] | |||||||||
Loss Contingency, New Claims Filed, Number | Number | 7 |
Subsequent Event (Details)
Subsequent Event (Details) - USD ($) | 3 Months Ended | |||
May 04, 2023 | May 01, 2023 | Apr. 04, 2023 | Mar. 31, 2023 | |
Subsequent Event [Line Items] | ||||
Award granted (in shares) | ||||
Number of Shares, Vested | 262,813 | |||
Subsequent Event [Member] | Patricia Kaelin | ||||
Subsequent Event [Line Items] | ||||
Annual base salary | $ 250,000 | |||
Percentage of base salary | 20% | |||
Subsequent Event [Member] | Restricted Stock Units (RSUs) [Member] | ||||
Subsequent Event [Line Items] | ||||
Award granted (in shares) | 60,000 | |||
Vesting period | 18 months | |||
Number of Shares, Vested | 1,627,773 | |||
Subsequent Event [Member] | Restricted Stock Units (RSUs) [Member] | Paul Galvin | ||||
Subsequent Event [Line Items] | ||||
Award granted (in shares) | 476,049 | 125,261 | ||
Vesting period | 2 years | |||
Subsequent Event [Member] | Restricted Stock Units (RSUs) [Member] | David Villarreal | ||||
Subsequent Event [Line Items] | ||||
Award granted (in shares) | 140,105 | 118,166 | ||
Vesting period | 2 years | |||
Subsequent Event [Member] | Restricted Stock Units (RSUs) [Member] | Yaniv Blumenfeld | ||||
Subsequent Event [Line Items] | ||||
Award granted (in shares) | 68,814 | 37,500 | ||
Vesting period | 2 years | |||
Subsequent Event [Member] | Restricted Stock Units (RSUs) [Member] | Shafron Hawkins | ||||
Subsequent Event [Line Items] | ||||
Award granted (in shares) | 37,500 | 37,500 | ||
Vesting period | 2 years | |||
Subsequent Event [Member] | Restricted Stock Units (RSUs) [Member] | Elizabeth Cormier-May | ||||
Subsequent Event [Line Items] | ||||
Award granted (in shares) | 37,500 | 37,500 | ||
Vesting period | 2 years | |||
Subsequent Event [Member] | Restricted Stock Units (RSUs) [Member] | Christopher Melton | ||||
Subsequent Event [Line Items] | ||||
Award granted (in shares) | 59,439 | 37,500 | ||
Vesting period | 2 years | |||
Subsequent Event [Member] | Restricted Stock Units (RSUs) [Member] | Nicolai Brune | ||||
Subsequent Event [Line Items] | ||||
Award granted (in shares) | 117,500 | |||
Subsequent Event [Member] | Restricted Stock Units (RSUs) [Member] | William Rogers | ||||
Subsequent Event [Line Items] | ||||
Award granted (in shares) | 86,960 |