SGD

***Sponsored by Primetime Profiles, LLC

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3,200% Year-Over-Year Revenue Growth in Q2 2025

Management expects approximately $4 million in revenue for Q3 2025, reflecting the first full quarter of operations with Resource Group

Safe and Green Development Corporation Achieves Strategic Milestone with Acquisition of Resource Group ---- On a pro forma basis, the combined entity is projecting ~$25 million in annualized revenue for 2025

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Hello Everyone,

We wanted to put something brand new on your radar ahead of Wednesday's session.

This is our very first look at this one. The company has a strong back story and the company is quickly putting itself on the map as they start to put some strong numbers up after a recent major acquisition.

Pull up SGD right away.

Safe & Green Development Corporation (NASDAQ: SGD) isn’t the same company it was a year ago. What began as a small, overlooked developer has rapidly transformed into a vertically integrated environmental and real-estate enterprise, one that’s now posting explosive growth, restructuring for efficiency, and capturing attention in the small-cap market.

SGD’s story now blends two powerful sectors: real estate development and the green-economy infrastructure boom.
Its composting and engineered-soils operations align with growing state-level mandates for organic waste recycling and carbon-reduction goals, while its property portfolio offers built-in asset value.

With triple-digit growth, tangible assets, and operational diversification, Safe & Green Development Corporation has quietly evolved from a microcap curiosity into a company with legitimate long-term potential.

From Dormant to Dominant: A 3,200% Revenue Surge

The headline numbers speak volumes.
In its most recent quarter, SGD reported over $1.4 million in revenue, up a staggering 3,200% year-over-year, compared with just $42,000 in the same quarter a year prior.

That growth was driven by SGD’s acquisition of Resource Group US Holdings LLC (RGUS) a thriving operator in the organics, composting, and logistics sectors. The integration immediately gave SGD a recurring-revenue business model and a clear path toward scale.

Management has already indicated expectations for roughly $4 million in Q3 2025 revenue, marking the first full quarter with RGUS fully consolidated. On a pro forma basis, the combined entity is projecting ~$25 million in annualized revenue for 2025.

The Resource Group Acquisition: Real Assets, Real Operations

Unlike many small-cap pivots that rely on speculative promises, SGD’s acquisition of RGUS added tangible operations and infrastructure.
The deal brought in:

A fully permitted composting facility
Two green-waste aggregation sites
A transportation fleet for organics and environmental materials
An experienced management team and operating staff

According to unaudited 2024 figures, RGUS generated $18.75 million in revenue and $9.4 million in gross profit, while trimming its net loss to under $1 million — down from $6.2 million the prior year.

These are real numbers from a real business, now sitting inside SGD’s corporate structure.

Real Estate: A Hidden Value Layer

SGD hasn’t abandoned its roots. Its development arm remains a valuable source of optionality and capital.
The company holds multiple parcels of land, including sites in Lago Vista, Texas and Durant, Oklahoma, collectively appraised at approximately $9.9 million.

In recent months, SGD:

Sold its St. Mary’s property for $1.4 million
Entered a contract to sell Lago Vista for $6.575 million
Closed 22 lots in a South Texas joint-venture project

These transactions inject liquidity and demonstrate that SGD’s real-estate portfolio isn’t just sitting on the books, it’s active, monetizeable, and capable of funding future expansion.

Cleaning House: Strategic Resets Paying Off

While SGD posted a GAAP net loss of $5.72 million in Q2 2025, most of that was due to one-time items — including impairment charges and bad-debt write-offs tied to legacy operations.

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The adjusted EBITDA loss was just $634,000, reflecting a company still investing heavily in growth but beginning to normalize its cost structure.

SGD also restructured its board of directors, adding three new members from RGUS to ensure operational continuity and accountability. The integration of management across both sides has been deliberate — and it’s beginning to show in the financials.

Why This Turnaround Looks Different and what separates SGD from the rest:

Actual operating business: The acquisition brought immediate revenue and tangible assets.
Vertical integration: SGD now owns the full cycle — collection, processing, and distribution, giving it control over margins.
Real estate leverage: The company can unlock liquidity through land sales or development while scaling its environmental arm.
Improving profitability trajectory: RGUS’s sharply reduced losses point toward operating leverage.
Aligned incentives: RGUS shareholders received stock and board seats, ensuring both sides benefit from long-term success.

In short: this is no longer a speculative “pivot” it’s a genuine transformation with evidence in the numbers.

Safe and Green Development Announces Strategic Plan to Unlock Shareholder Value Post-Acquisition

MIAMI, June 11, 2025 /PRNewswire/ -- Safe and Green Development Corporation (NASDAQ: SGD) announces that its wholly owned subsidiary, Resource Group US Holdings LLC ("Resource") is expanding into being able to produce high-value potting media and soil substrates through the implementation of advanced milling technology.

By leveraging Resource's exclusive license to utilize cutting-edge Microtec milling technology, patented German-engineered systems with over 90 global installations, Resource expects to move beyond commodity compost and expand into higher-value markets. The company is introducing a suite of sustainable, potentially high-margin soil products under its "Renewable Earth™" brand. By converting woody and vegetative waste into finely milled potting media and substrates, Resource may be able to access a market where product pricing can reach approximately $150 per ton, potentially up to five times the value of traditional compost offerings. A preview of the expected Renewable Earth product packaging can be seen in the image accompanying this release.

"This product represents a potential fundamental revaluation of organic waste as a resource," said Tony Cialone, CEO of Resource Group. "We're not just managing green waste we're engineering premium, sustainable products that reduce reliance on environmentally harmful peat and imported coir while creating circular economic value."

"As we integrate Resource's proven logistics, proprietary processing capabilities, and deep regional market knowledge, we intend to unlock a scalable, environmentally responsible business model with attractive margins and robust growth potential," said David Villarreal, CEO of Safe and Green Development Corporation. "We believe Resource is positioned to lead the next generation of sustainable soil solutions supporting the horticulture, agriculture, and consumer landscaping sectors with products designed for performance, sustainability, and impact,"

The Company expects to finalize the delivery and installation of the Microtec mill in the third quarter.