OLOX Assets Soar 785% Post-Acquisition, Despite Revenue Dip

TL;DR

**OLOX is making a high-stakes bet on diversification, but declining core revenue and widening operating losses make it a speculative play.**

AI Summary

SAFE & GREEN HOLDINGS CORP. (OLOX) reported a significant increase in total assets to $53,743,675 as of June 30, 2025, up from $6,071,524 at December 31, 2024, primarily driven by the acquisition of New Asia Holdings, Inc. (NAHD) and the addition of oil and gas assets. The company's net loss for the six months ended June 30, 2025, was $7,320,538, an improvement from a net loss of $9,113,031 for the same period in 2024. Revenue, however, decreased to $1,287,705 for the six months ended June 30, 2025, from $2,179,369 in the prior year, largely due to a decline in construction services revenue from $2,179,369 to $1,019,637. The company introduced new revenue streams from oil and gas ($61,638) and other services ($206,430) in 2025. Operating loss widened to $5,519,762 from $3,421,617 year-over-year, impacted by increased general and administrative expenses, which rose from $1,237,944 to $2,750,190. Stockholders' equity dramatically shifted from a deficit of $12,460,308 at December 31, 2024, to a positive $23,739,021 at June 30, 2025, largely due to the issuance of 4,000,000 shares of Series A Preferred Stock for the NAHD acquisition, valued at $34,569,600.

Why It Matters

This filing reveals a company in a significant transitional phase, marked by a massive asset increase and a shift in business segments, which could be a high-risk, high-reward scenario for investors. The acquisition of NAHD and entry into oil and gas and environmental segments diversifies OLOX beyond its struggling construction services, which saw revenue drop by over 50%. For employees, this expansion could mean new opportunities in these emerging sectors, while existing construction roles might face uncertainty. Customers in the modular construction space may see less focus on their core offerings. The broader market will watch if OLOX can successfully integrate these new ventures and turn its substantial asset growth into profitable operations, especially given the competitive pressures in both construction and energy sectors.

Risk Assessment

Risk Level: high — The company's operating loss widened to $5,519,762 for the six months ended June 30, 2025, from $3,421,617 in the prior year, indicating ongoing operational challenges. While total assets increased significantly due to acquisitions, the construction services revenue, a core segment, declined from $2,179,369 to $1,019,637, highlighting weakness in its established business. The substantial increase in goodwill to $39,136,202 from zero at December 31, 2024, due to the NAHD acquisition, also introduces significant impairment risk.

Analyst Insight

Investors should exercise extreme caution and conduct thorough due diligence on OLOX. While the asset growth and diversification into oil and gas and environmental segments present potential upside, the declining core construction revenue and widening operating losses are red flags. Monitor the performance of the newly acquired segments closely for signs of successful integration and profitability before considering any investment.

Financial Highlights

debt To Equity

1.26

revenue

$1,287,705

operating Margin

N/A

total Assets

$53,743,675

total Debt

$35,158,558

net Income

-$7,320,538

eps

N/A

gross Margin

-102%

cash Position

$2,767,210

revenue Growth

-41%

Revenue Breakdown

Key Numbers

• $53.7M — Total Assets (Increased from $6.1M at Dec 31, 2024, a 785% rise, primarily due to acquisitions.)
• $7.32M — Net Loss (6 months) (Improved from $9.11M in prior year, but still significant.)
• $1.29M — Total Revenue (6 months) (Decreased from $2.18M in prior year, a 41% decline.)
• $1.02M — Construction Services Revenue (6 months) (Decreased from $2.18M in prior year, a 53% decline.)
• $5.52M — Operating Loss (6 months) (Widened from $3.42M in prior year, a 61% increase.)
• $23.7M — Total Stockholders' Equity (Shifted from a $12.5M deficit at Dec 31, 2024, largely due to preferred stock issuance.)
• 4,000,000 — Series A Preferred Shares (Issued for the acquisition of New Asia Holdings, Inc.)
• $39.1M — Goodwill (Increased from zero at Dec 31, 2024, due to the NAHD acquisition.)

Key Players & Entities

• SAFE & GREEN HOLDINGS CORP. (company) — registrant
• New Asia Holdings, Inc. (company) — acquired company
• NAHD (company) — acquired company ticker
• SEC (regulator) — filing oversight
• $53,743,675 (dollar_amount) — total assets as of June 30, 2025
• $6,071,524 (dollar_amount) — total assets as of December 31, 2024
• $7,320,538 (dollar_amount) — net loss for six months ended June 30, 2025
• $9,113,031 (dollar_amount) — net loss for six months ended June 30, 2024
• $34,569,600 (dollar_amount) — value of Series A Preferred Stock issued for NAHD acquisition
• $39,136,202 (dollar_amount) — goodwill as of June 30, 2025

FAQ

Risk Factors

• Dependence on Acquisitions [high — financial]: The company's significant asset growth and shift in equity structure are heavily reliant on recent acquisitions, particularly New Asia Holdings, Inc. Future growth and financial stability may be jeopardized if integration of acquired entities or future acquisitions are unsuccessful.
• Deterioration in Construction Services [medium — operational]: Construction services revenue decreased by 53% from $2,179,369 to $1,019,637 for the six months ended June 30, 2025. This decline, coupled with an increase in cost of revenue for this segment, negatively impacts overall profitability.
• Increased Operating Expenses [medium — operational]: General and administrative expenses rose from $1,237,944 to $2,750,190 year-over-year, contributing to a widened operating loss of $5,519,762. Managing these costs is crucial for improving operational efficiency.
• Continued Net Loss [medium — financial]: Despite an improvement from the prior year, the company reported a net loss of $7,320,538 for the six months ended June 30, 2025. Sustained losses can strain financial resources and impact investor confidence.
• Integration of New Business Segments [low — market]: The company has diversified into oil and gas and other services. The success of these new ventures and their integration with existing operations is uncertain and could present operational challenges.

Industry Context

SAFE & GREEN HOLDINGS CORP. operates in the construction services sector and has recently expanded into oil and gas and other services. The construction industry is cyclical and sensitive to economic conditions, while the oil and gas sector is subject to volatile commodity prices and regulatory changes. The company's diversification strategy aims to mitigate risks associated with a single industry but introduces new operational and market complexities.

Regulatory Implications

The company's expansion into the oil and gas sector may subject it to stricter environmental and safety regulations specific to that industry. Compliance with these regulations, along with ongoing reporting requirements for a publicly traded company, necessitates robust internal controls and legal oversight.

What Investors Should Do

1. Monitor the integration and performance of acquired entities, particularly New Asia Holdings, Inc.
2. Analyze the profitability and sustainability of new revenue streams (oil & gas, other services).
3. Evaluate the company's ability to manage increased operating expenses, especially G&A.
4. Assess the impact of the significant increase in debt and preferred stock on future capital structure and cash flows.

Key Dates

• 2025-06-30: Acquisition of New Asia Holdings, Inc. (NAHD) — Significantly increased total assets and goodwill, and led to the issuance of Series A Preferred Stock, transforming the balance sheet and equity structure.
• 2025-06-30: End of Six-Month Period — Reporting period for the condensed consolidated financial statements, showing substantial asset growth and a narrowed net loss but decreased revenue.
• 2024-12-31: Previous Fiscal Year End — Baseline for comparison, showing a significantly smaller asset base and a deficit in stockholders' equity prior to the recent acquisition.

Glossary

Full Cost Accounting

An accounting method used in the oil and gas industry where all costs associated with finding and acquiring oil and gas reserves are capitalized, regardless of whether they are directly related to a specific reserve property. (Explains the accounting treatment for the newly acquired oil and gas assets, contributing $3,541,448 to the balance sheet.)

Goodwill

An intangible asset that arises when a company acquires another company for a price greater than the fair value of its identifiable net assets. (Increased to $39,136,202 due to the acquisition of NAHD, indicating a premium paid over the net assets acquired.)

Contract Assets

Represents the entity's right to consideration in exchange for goods or services that the entity has transferred to a customer when that right is conditional on something other than the passage of time. (Increased from $2,536 to $130,798, potentially indicating unbilled work or performance obligations not yet met in construction or other service contracts.)

Contract Liabilities

Represents the entity's obligation to transfer goods or services to a customer for which the entity has received consideration from the customer. (Increased from $596,082 to $1,111,501, suggesting an increase in advance payments received from customers for future services.)

Series A Preferred Stock

A class of preferred stock with specific rights and privileges, in this case, issued as consideration for an acquisition. (The issuance of 3,848,640 shares for the NAHD acquisition significantly boosted stockholders' equity from a deficit to a positive position.)

Year-Over-Year Comparison

Compared to the prior year, SAFE & GREEN HOLDINGS CORP. has experienced a dramatic increase in total assets, rising from $6.1M to $53.7M, primarily due to acquisitions. However, total revenue has declined by 41% from $2.18M to $1.29M, driven by a significant drop in construction services revenue. While the net loss has improved from $9.11M to $7.32M, the operating loss has widened by 61% to $5.52M due to a substantial increase in general and administrative expenses. A key positive development is the shift from a negative $12.5M stockholders' equity deficit to a positive $23.7M, largely attributed to the issuance of preferred stock for acquisitions.

Key Financial Figures

• $0.01 — ich registered Common Stock, par value $0.01 per share SGBX The Nasdaq Stock Market
• $1.00 — holders' Equity (Deficit) (Unaudited) $1.00 Par Value Series A Preferred Stock $0.

Filing Documents

• ea0252974-10q_safe.htm (10-Q) — 1635KB
• ea025297401ex31-1_safe.htm (EX-31.1) — 12KB
• ea025297401ex31-2_safe.htm (EX-31.2) — 12KB
• ea025297401ex32-1_safe.htm (EX-32.1) — 5KB
• ea025297401ex32-2_safe.htm (EX-32.2) — 5KB
• 0001213900-25-076841.txt ( ) — 10995KB
• sgbx-20250630.xsd (EX-101.SCH) — 124KB
• sgbx-20250630_cal.xml (EX-101.CAL) — 71KB
• sgbx-20250630_def.xml (EX-101.DEF) — 513KB
• sgbx-20250630_lab.xml (EX-101.LAB) — 1007KB
• sgbx-20250630_pre.xml (EX-101.PRE) — 533KB
• ea0252974-10q_safe_htm.xml (XML) — 1453KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION 1 ITEM 1.

Financial Statements

Financial Statements 1 Condensed Consolidated Balance Sheets as of June 30, 2025 (Unaudited) and December 31, 2024 1 Condensed Consolidated Statements of Operations for the Three Months and Six Months Ended June 30, 2025 and 2024 (Unaudited) 2 Condensed Consolidated Statements of Changes in Stockholders' Equity (Deficit) for the Three and Six Months Ended June 30, 2025 and 2024 (Unaudited) 3 Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2025 and 2024 (Unaudited) 5 Notes to Condensed Consolidated Financial Statements (Unaudited) 6 ITEM 2.

Management's Discussion and Analysis of Financial Condition and Result of Operations

Management's Discussion and Analysis of Financial Condition and Result of Operations 50 ITEM 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 62 ITEM 4.

Controls and Procedures

Controls and Procedures 62

OTHER INFORMATION

PART II. OTHER INFORMATION 63 ITEM 1.

Legal Proceedings

Legal Proceedings 63 ITEM 1A.

Risk Factors

Risk Factors 63 ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds 66 ITEM 3. Defaults Upon Senior Securities 66 ITEM 4. Mine Safety Disclosures 66 ITEM 5. Other Information 66 ITEM 6. Exhibits 67

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

ITEM 1. Financial Statements SAFE & GREEN HOLDINGS CORP. AND SUBSIDIARIES Condensed Consolidated Balance Sheets June 30, 2025 December 31, 2024 (Unaudited) Assets Current assets: Cash and cash equivalents $ 2,767,210 $ 375,873 Accounts receivable, net 309,261 105,479 Contract assets 130,798 2,536 Inventories 751,831 471,468 Prepaid expenses and other current assets 129,970 204,596 Total current assets 4,089,070 1,159,952 Oil and gas, on the basis of full cost accounting, net 3,541,448 — Property, plant and equipment, net 4,214,303 3,965,426 Other non-current assets 199,562 196,432 Proved oil and gas reserves 1,560,000 — Intangible assets, net 783,090 11,658 Investment in and advances to equity affiliates 220,000 738,056 Goodwill 39,136,202 — Total Assets $ 53,743,675 $ 6,071,524 Liabilities and Stockholders' Equity (Deficit) Current liabilities: Accounts payable and accrued expenses $ 12,911,626 $ 9,332,620 Contract liabilities 1,111,501 596,082 Lease liability, current maturities — 66,821 Due to affiliates 3,474,727 1,716,244 Short-term notes payable, net 7,352,896 2,098,381 Total current liabilities 24,850,750 13,810,148 Long-term notes payable, net 5,153,904 4,721,684 Total liabilities 30,004,654 18,531,832 Stockholders' equity (deficit): Series A Preferred stock, $ 1.00 par value, 5,405,010 shares authorized; 3,848,640 and 0 issued and outstanding at June 30, 2025 and December 31, 2024, respectively 3,848,640 — Common stock, $ 0.01 par value, 75,000,000 shares authorized; 12,120,651 issued and 12,117,280 outstanding as of June 30, 2025 and 6,389,041 issued and 6,038,382 outstanding as of December 31, 2024 121,207 60,384 Additional paid-in capital 125,714,191 86,103,787 Treasury stock, at cost 3,371 shares as of June 30, 2025 and December 31, 2024 ( 92,396 ) ( 92,396 ) Accumulated deficit ( 105,852,621 ) ( 98,532,083 ) Total stockholders' e

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