Greetings. Welcome to the Safe & Green Holdings Second Quarter 2023 Business Update Conference Call. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to your host, Ted Ayvas, Vice President of Investor Relations. You may begin.

Good afternoon, and thank you for joining Safe & Green’s second 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 June 30, 2023. The press release is posted on the company’s website, www.safeandgreenholdings.com. In addition, the company has filed 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, 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 were 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, Monday, August 14, 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 extending our sincere thanks to our investors for your unwavering belief and support of our vision. We remain committed to creating long-term value for our shareholders and are clearly executing on that strategy. In the second quarter of 2023, Safe & Green built on the momentum from previous quarters and achieved a 21% year-over-year increase in manufacturing revenue. While many competitors in our industry faced challenges, often downsizing and, in some cases, filing for bankruptcy, we have set ourselves apart as we continue to execute on our business model as a vertically integrated developer and manufacturer of modular structures. Importantly, we didn’t just weather the storm. During and post-pandemic, we flourished. This success is evident in the growth of both our asset base and the Safe & Green team. Additionally, we’ve channeled significant resources into our business and have zeroed in on four key verticals. Each of these holds promising opportunities for revenue growth, business development and the enhancement of shareholder value. I am pleased to report that we have made substantial headway with our plans to spin off SG DevCo as an independent entity listed on NASDAQ, and we anticipate setting a record date shortly. We have previously discussed our plans for the distribution of SG DevCo shares following the spinoff and listing on NASDAQ. The company plans to allocate 30% of SG DevCo’s shares to our existing Safe & Green shareholders with Safe & Green Holdings retaining the remaining 70% of the shares. This strategy is to design to generate significant value for our faithful longtime shareholders given the fact that an independent third-party appraisal has valued SG DevCo’s fair market value at an impressive $74 million, a figure…

Thanks, Paul. During the second quarter, we sought to utilize our solid asset base to secure non-dilutive financing, thereby lessening the company’s reliance on the equity markets for further expansion. We have also substantially reduced our cash burn. In fact, we reduced our cash burn used in operations for the 6 months by over $2 million. As we continue to grow revenue, we look forward to generating meaningful cash flow from operations. Now turning to the results for the quarter. Revenue for the second quarter of 2023 was $5.1 million, compared to $7.6 million for the second quarter of 2022, reflecting the discontinuation of COVID-19 testing facility, which was partially offset by the increase in manufacturing for construction services revenue. The manufacturing for construction services segment generated $5.1 million in revenue, a 21% increase compared to the same period last year. Total gross profit for the second quarter of 2023 was $34,000, compared to $771,000 of gross profit in the second quarter of 2022, reflecting the decline in the medical revenue, offset by increased revenue within the manufacturing for construction services segment. Operating expenses for the second quarter of 2023 were $5.6 million, compared to $2.1 million for the second quarter of 2022. This increase was primarily attributable to an increase in head count and salary expense during the 3 months ended June 30, 2023, as well as the vesting of additional restricted stock units during 2023. The second quarter of 2023 also included significant expenses allocated to the buildout of SG DevCo and the medical segment that were not incurred for the same period last year. The net loss attributable to common shareholders was approximately $5.6 million, or $0.37 per share, in the second quarter of 2023, compared to a net loss of $1.4 million, or $0.11 per share,…

Thank you. This concludes today’s event, and you may disconnect your lines at this time. Thank you for your participation.+