Greetings, and welcome to Safe & Green Holdings First Quarter 2023 Business Update Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions] Please note this conference is being recorded. I will now turn the conference over to your host, [Ted Avis], Vice President of Investor Relations. You may begin.

Good afternoon, and thank you for joining Safe & Green's first quarter 2023 conference call and business update. On the call with us today is Paul Galvin, Chairman and Chief Executive Officer of Safe & Green; and Tricia Kaelin, Chief Financial Officer of Safe & Green. Earlier today, the Company announced its operating results for the quarter ended March 31, 2023. The press release is posted on the Company's website, www.safeandgreenholdings.com. In addition, the Company plans to file its quarterly report on Form 10-Q with the 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 or 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 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, Thursday, May 11, 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?

Thanks, Ted. Good afternoon, and thank you to everyone for joining us today. I would like to begin by expressing our gratitude to our investors for their incredible support and faith in our vision. We remain dedicated to achieving our goals and generating enduring long-term value for our shareholders. In the first quarter of 2023, the Company experienced a 230% year-over-year growth in Construction Services revenue, continuing the strong momentum we gained during the fourth quarter of 2022. Although considerable investments in the business to facilitate our projected growth temporarily affected margins, we are clearly implementing our business model as a vertically integrated developer and producer of modular structures. Our attention is now concentrated on four distinct verticals, all of which present numerous opportunities for revenue growth, business expansion and increased shareholder value. Furthermore, we remain confident that SG Echo, our manufacturing operations, will reach positive cash flow in Q3 2023, marking an important milestone in our pursuit of long-term company-wide profitability. Due to the Waldron production facility gearing up for operations during Q1, SG Echo was not yet cash flow positive. However, once it has ramped up, likely in Q3 2023, we expect SG Echo to turn cash flow positive. Amidst the pandemic, when many businesses faced stagnation or decline, Safe & Green demonstrated impressive growth. Total assets increased from $6.6 million in 2019 to $28.4 million as of March 31, 2023, representing an increase of over 300%. For accounting purposes, these reported assets do not include the third-party appraised value of $74 million for our SG DevCo alone. Concurrently, our workforce expanded from seven employees to 92 over the same time frame. That is not counting the additional 50 plus employees who will be employed at our new Waldron facility. As part of our efforts to bolster the…

Thanks, Paul. Before I jump into the results, let me say how delighted I am to join Safe & Green at this exciting time in the Company's evolution. Before joining the Company, I conducted my own due diligence and the more I learned, the more I saw the tremendous potential. This is best illustrated by the rapid growth in the Construction Services revenue despite a challenging macro environment. When you combine this with the significant operating leverage to be gained from the vertical integration of the Company's manufacturing capabilities, I believe Safe & Green is truly poised to drive significant returns for shareholders. That said, let me now turn to our financial results for the quarter. Revenue for the first quarter of 2023 was $5.5 million compared to $8.6 million for the first quarter of 2022, reflecting the discontinuation of COVID-19 testing facilities, partially offset by increased Construction Services revenue. The Construction Services segment generated $5.5 million in revenue, a 230% increase compared to the same period last year. Total gross profit for the three months ended March 31, 2023, was a loss of $69,000 compared to $2.5 million of gross profit in the first quarter of 2022, reflecting the decline in medical revenue, offset by increased revenue within the Construction Services segment. Operating expenses for the first quarter of 2023 were $2.8 million compared to $2.1 million for the first quarter of 2022. This increase was primarily attributable to increased general and administrative expenses that the Company incurred to support its anticipated growth, partially offset by the reduction in payroll and related expenses. Operating expenses for the first quarter of 2023 were $2.8 million compared to $2.1 million for the first quarter of 2022. This increase was primarily attributable to increased general and administrative expenses that the Company incurred…

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