Greetings, welcome to the Fourth Quarter and Year-End 2022 Conference Call. At this time, all participants are in a listen-only mode. Please note this conference is being recorded. I will now turn the conference over to your host, David Waldman. You may begin.

Good afternoon, and thank you, for joining Safe & Green's fourth quarter 2022 conference call and business update. On the call with us today is Paul Galvin, Chairman and Chief Executive Officer of Safe & Green and Christopher Gagliardi, Senior Accounting Consultant. Earlier today, the Company announced its operating results for the quarter ended December 31, 2022. The press release is posted on the Company's website www.safeandgreenholdings.com. In addition, the Company plans to file its Annual Report on Form 10-K with U.S. Securities and Exchange Commission, which will be accessible on the Company's website as well as the SEC's website at www.sec.gov. If you have any questions after the call, I would like to arrange a one-on-one discussion with Mr. Galvin. Following the call, please contact Crescendo Communications at (212) 671-1020. Before I turn the call over to Paul, please remember that various remarks about future expectations, plans, and prospects made on today's call constitute forward-looking statements for the purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Safe & Green cautions that these forward-looking statements are subject to risks and uncertainties that may cause their actual results to differ materially from those indicated including risks described in the Company’s filings with the SEC. These forward-looking statements are subject to a number of risks and uncertainties, which are described in the Company's filings with the SEC. Any forward-looking statements made on this conference call speak only as of today's date, Wednesday, March 29, 2023. Safe & Green does not intend to update any of these forward-looking statements to reflect events or circumstances that occur after today. With that being said, I am now pleased to introduce Paul Galvin, Chairman and CEO of Safe & Green. Paul, please go ahead.

Thank you, David. Good afternoon, and thank you, to everyone for joining us today. On behalf of the Safe & Green team, I would like to take a moment to thank our investors for your tremendous support and confidence on our vision. We are committed to realizing our objectives and driving sustainable long-term value for our shareholders. The company underwent a transformation in 2022 that led to an almost five-fold rise in construction services revenue during the fourth quarter as compared to the fourth quarter of 2021. Initially, the company's main focus was on creating and delivering advanced and eco-friendly structures crafted from sophisticated cargo shipping containers. However, in response to the COVID-19 pandemic, we efficiently pivoted our business model to offer modular labs. Our decision to pivot during the pandemic proved to be the correct one, generating significant revenue and affirming the effectiveness of our business model. With the pandemic now waning, we have successfully transitioned back to our core competencies and have evolved into a vertically integrated developer and manufacturer of modular structures. Additionally, we are focusing on four key verticals, including a nimble medical sector, each of which we believe will drive our long-term revenue growth and profitability. Our construction pipeline grows surpassing $800 million. We are more confident than ever that there is vast untapped potential in the multi-billion dollar industry in which we operate. We believe that our distinct competitive advantage in terms of pricing and speed-to-market stems from the vertical integration of our business where in-house manufacturing allows us to fill our factories with our own work. Furthermore, we are confident that this approach will lead to significant margin expansion given the proprietary technologies and processes we have developed. The progress in each of our four key verticals has been rapid and substantial. In…

Thanks, Paul. Looking at the fourth quarter results first. The company reported revenue of $4.1 million compared to $8.5 million for the fourth quarter of 2021. As Paul mentioned earlier, this reflects the discontinuation of COVID-19 testing facilities, offset by an increase in construction services revenue. The construction services segment generated $4.2 million in revenue, a 476% increase compared to the same period last year. Total gross profit for the fourth quarter of 2022 was $0.3 million compared to $0.2 million in the 2021 fourth quarter, reflecting the decline in medical revenue, offset by increased revenue and improved gross margin within the construction services segment. Operating expenses for the three months ended December 31, 2022 were $4 million compared to $2.4 million in the fourth quarter of 2021. Due to increased payroll-related expenses, as well as increased general and administrative expenses, which reflect the company's investments to support its anticipated growth. Operating expenses for the fourth quarter of 2022 included approximately $1.1 million of non-cash expenses, including $145,000 of depreciation and amortization, as well as $924,000 of stock-based compensation expense. This compares to approximately $1 million of non-cash expenses, including $156,000 of depreciation and amortization, as well as $869,000 of stock-based compensation expense for the same period last year. The fourth quarter of 2022 also included approximately $2.4 million of expenses allocated to SG DevCo that were not incurred for the same period last year. The company expects its operating expense as a percentage of revenue will significantly decline in future quarters. The net loss attributable to common shareholders was approximately $3.3 million, or negative $0.24 per share in the fourth quarter of 2022, compared to a net loss of $3.4 million, or negative $0.32 per share, in the fourth quarter of 2021. The company's EBITDA loss for the three…

I would like to thank each of you once more for joining us today. We take pride in the progress that Safe & Green has achieved over the last year and are eagerly anticipating the opportunities that lie ahead, our commitment to executing our strategy remains unchanged, and we look forward to providing you with updates on our progress in the coming months. Thank you.

This concludes today's conference and you may disconnect your lines at this time. Thank you for your participation.