Form: 8-K/A

Current report

August 12, 2025

Documents

Exhibit 99.4

 

SAFE AND GREEN DEVELOPMENT CORPORATION AND SUBSIDIARIES

 

TABLE OF CONTENTS

 

    Page
Number
Financial Statements    
Consolidated Balance Sheets as of March 31, 2025, December 31, 2024 and 2023(Unaudited)   F-3
Consolidated Statements of Operations for the Three Months Ended March 31, 2025 and 2024 and the Years Ended December 31, 2024 and 2023(Unaudited)   F-6
Notes to Unaudited Pro Forma Condensed Combined Financial Information   F-10

 

F-1

 

 

Description of the Business Combination

 

On February 25, 2025, Safe and Green Development Corporation (the “Company” or “SGD”) entered into a definitive Membership Interest Purchase Agreement (the “Purchase Agreement”) with Resource Group US Holdings LLC (“Resource Group”), a Florida limited liability company, and its equityholders. On June 2, 2025, pursuant to an amendment to the Purchase Agreement (the “Amendment”), the Company consummated the acquisition of all of the issued and outstanding membership interests of Resource Group, with Resource Group continuing as the surviving company and becoming a wholly owned subsidiary of the Company (the “Acquisition”).

 

On June 2, 2025, Safe and Green Development Corporation (the “Company”) entered into an Amendment (the “Amendment”) to Membership Interest Purchase Agreement, dated February 25, 2025, (the “Purchase Agreement”) with Resource Group US Holdings LLC, a Florida limited liability company (“Resource Group”), and the members of Resource Group (the “Equityholders”). The Amendment alters the consideration to be paid by the Company to the Equityholders in connection with the purchase of 100% of the membership interests of Resource Group. Pursuant to the Amendment, the purchase price for the membership interests of Resource Group was amended to be comprised of (i) $480,000 in principal amount of unsecured 6% promissory notes due on the first anniversary of the closing, (ii) the issuance of shares of the Company’s restricted common stock (the “Closing Shares”) equal to 19.99% of the Company’s outstanding shares of common stock on the date the Purchase Agreement was executed; and (iii) 1,500,000 shares of a newly designated series of non-voting Series A Convertible Preferred Stock (the “Series A Preferred Stock”) (which, subject to the approval of the Company’s stockholders and The Nasdaq Stock Market (“Nasdaq”) not objecting to the conversion and the Company continuing to meet and being eligible to meet the Nasdaq continued listing requirements after conversion), would be convertible into 9,000,000 restricted shares of the Company’s common stock). The Amendment also provides that, subject to shareholder approval, the Company will issue an aggregate of 41,182 additional shares of Company common stock to the Equityholders upon the approval of such issuance by the Company’s stockholders at the Company’s stockholders’ meeting and provided that the Company continues to meet and is eligible to meet the Nasdaq continued listing requirements.

 

Safe and Green Development Corporation is considered to be the accounting acquirer, as further discussed in “Note 1 — Basis of Presentation” of this unaudited pro forma condensed combined financial information.

 

The unaudited pro forma condensed combined financial statements are presented for informational purposes only, in accordance with Article 11 of Regulation S-X and are not intended to represent or to be indicative of the income or financial position that the Company would have reported had the Merger been completed as of the dates set forth in the unaudited pro forma condensed combined financial statements due to various factors. The unaudited pro forma condensed combined statement of financial position does not purport to represent the future financial position of the Company and the unaudited pro forma condensed combined statements of operations do not purport to represent the future results of operations of the Company.

 

The unaudited pro forma condensed balance sheet and statement of operations for the three months ended March 31, 2025 and 2024 combines the historical condensed statement of operations of the Company the year ended December 31, 2023 and the historical balance sheet and statement of operations of Resource Group US, LLC for the same periods on a pro forma basis as if the Merger had been consummated on January 1, 2023. The unaudited pro forma condensed balance sheet and statement of operations for the year ended December 31, 2024 combines the historical condensed statement of operations of the Company the year ended December 31, 2024 and the historical balance sheet and statement of operations of Resource Group US, LLC for the same periods on a pro forma basis as if the Merger had been consummated on January 1, 2024. The unaudited pro forma condensed balance sheet and statement of operations for the year ended December 31, 2023 combines the historical condensed statement of operations of the Company the year ended December 31, 2023 and the historical balance sheet and statement of operations of Resource Group US, LLC for the same periods on a pro forma basis as if the Merger had been consummated on January 1, 2023.

 

The unaudited pro forma condensed combined financial information does not give effect to any anticipated synergies, operating efficiencies, tax savings, or cost savings that may be associated with the Merger.

 

The unaudited pro forma condensed combined financial information is presented to illustrate the estimated effects of the Merger, and should be read in conjunction with the following:

 

  ● The audited financial statements of the Company included in its annual report, on Form 10-K, for the year ended December 31, 2023, filed with the Commission on March 31, 2024.
     
  ● The audited financial statements of the Company included in its annual report, on Form 10-K, for the year ended December 31, 2024, filed with the Commission on March 31, 2025.
     
  ● The unaudited financial statements of the Company included in its quarterly report, on Form 10-Q, for the three months ended March 31, 2025, filed with the Commission on May 15, 2025.
     
  ● The unaudited financial statements of the Company included in its quarterly report, on Form 10-Q, for the three months ended March 31, 2025, filed with the Commission on May 15, 2024.

 

  ● The audited financial statements of Resource Group US, LLC as of for the year ended December 31, 2024 and December 31, 2023 included in this Form 8-K/A.
     
  ● The unaudited financial statements of Resource Group US, LLC as of for the three months ended March 31, 2025 and March  31, 2024 included in this Form 8-K/A.

  

  ● The sections entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in the Company’s annual report, on Form 10-K, for the year ended December 31, 2024, and for the year ended December 31, 2023 with the Commission on March 31, 2025, March 31, 2024.

F-2

 

 

SAFE AND GREEN DEVELOPMENT CORPORATION AND SUBSIDIARIES

ProForma Balance Sheets as of March 31, 2025 (Unaudited)

 

   

Safe and Green

Development Corporation

    

Resource

Group US, LLC

    

Adjustments

    

Combined

March 31,
2025

  
                         
Assets                        
Current assets:                        
Cash   $ 17,540     $ 361,139     $ -     $ 378,679  
Accounts receivable, net     -       1,402,611       -       1,402,611  
Inventory     -       923,928       -       923,928  
Prepaid expenses and other current assets     248,811       47,863       -       296,674  
Notes receivable     5,460,672       -       -       5,460,672  
Current Assets     5,727,023       2,735,541       -       8,462,564  
                                 
Assets held for sale     4,400,361               -       4,400,361  
Land     1,058,680       -       -       1,058,680  
Property and equipment, net     5,680       5,861,455       -       5,867,135  
Project development costs and other non-current assets     96,239       -       -       96,239  
Equity-based investments     795,596       -       -       795,596  
Intangible assets, net     1,022,197       -       -       1,022,197  
Right-of-use assets     -       331,192       -       331,192  
Goodwill     -       -       22,699,970 1     22,699,970  
                                 
Total Assets   $ 13,105,776     $ 8,928,188     $ 22,699,970     $ 44,733,934  
                                 
Liabilities and Stockholder’s Equity (Deficit)                                
Current liabilities:                                
Accounts payable and accrued expenses   $ 1,824,031     $ 3,228,809     $ -     $ 5,052,840  
Due to affiliates     -       2,575,720       -       2,575,720  
Notes payable, current     8,690,048       5,857,990       -       14,548,038  
Notes payable – related party, current     -       4,992,266       480,000 2     5,472,266  
Deferred gain on sale     1,475,000       -       -       1,475,000  
Operating lease liabilities, current     -       53,887       -       53,887  
Finance lease liabilities, current     -       187,158       -       187,158  
Total Current Liabilities     11,989,079       16,895,830       480,000       29,364,909  
                                 
Notes payable, net of current portion     815,569       3,738,278       -       4,553,847  
Operating lease liabilities, net of current portion     -       297,519       -       297,519  
Finance lease liabilities, net of current portion     -       1,124,349       -       1,124,349  
Total Liabilities     12,804,648       22,055,976       480,000       35,340,624  
                                 
Stockholder’s Equity (Deficit):                                
Common stock     2,255       -       377 3     2,632  
Preferred stock     -       -       1,500 4     1,500  
Additional paid-in capital     18,352,993       -       9,090,305 5     27,443,298  
Accumulated deficiency     (18,219,015 )     -       -       (18,219,015 )
Members deficit     -       (13,127,788 )     13,127,788 6     -  
Noncontrolling     164,895       -       -       164,895  
Total Stockholder’s Equity (Deficit)     301,128       (13,127,788       22,219,970       9,393,310  
                                 
Total Liabilities and Stockholder’s Equity (Deficit)   $ 13,105,776     $ 8,928,188     $ 22,699,970     $ 44,733,934  

 

F-3

 

 

SAFE AND GREEN DEVELOPMENT CORPORATION AND SUBSIDIARIES

ProForma Balance Sheets as of December 31, 2024 (Unaudited)

 

    Safe and Green Development Corporation     Resource
Group US, LLC		     Adjustments     Combined December 31,
2024		  
Assets                        
Current assets:                        
Cash   $ 296,202     $ 403,043     $ -     $ 699,245  
Accounts receivable, net     -       1,490,995       -       1,490,995  
Inventory     -       738,297       -       738,297  
Prepaid expenses and other current assets     547,296       59,560       -       606,856  
Notes receivable     960,672       -       -       960,672  
Current Assets     1,804,170       2,691,895       -       4,496,065  
                           
Assets held for sale     4,400,361             -       4,400,361  
Land     1,225,347       -       -       1,225,347  
Property and equipment, net     546,756       6,296,723       -       6,843,479  
Project development costs and other non-current assets     96,239       -       -       96,329  
Equity-based investments     3,642,607       -       -       3,642,607  
Intangible assets, net     1,038,312       13,889       -       1,052,201  
Right-of-use assets     -       348,575       -       348,575  
Goodwill     -       -       21,958,557 1     21,958,557  
                                 
Total Assets     12,753,792     $ 9,351,082     $ 21,958,557     $ 44,063,431  
                                 
Liabilities and Stockholder’s Equity (Deficit)                                
Current liabilities:                                
Accounts payable and accrued expenses   $ 1,301,276     $ 2,912,508     $ -     $ 4,213,784  
Due to affiliates     399,660       2,502,241       -       2,901,901  
Notes payable, current     8,699,721       5,494,786       -       14,194,507  
Notes payable – related party, current     -       4,992,266       480,000 2     5,472,266  
Operating lease liabilities, current     -       50,536       -       50,536  
Finance lease liabilities, current     -       202,886       -       202,886  
Total Current Liabilities     10,400,657       16,155,223       480,000       27,035,880  
                               
Notes payable, net of current portion     1,499,957       4,110,484       -       5,610,441  
Operating lease liabilities, net of current portion     -       305,502       -       305,502  
Finance lease liabilities, net of current portion     -       1,166,248       -       1,166,248  
Total Liabilities     11,900,614       21,737,457       480,000       34,118,071  
                                 
Stockholder’s Equity (Deficit):                                
Common stock     1,487       -       377 3     1,864  
Preferred stock     -       -       1,500 4     1,500  
Additional paid-in capital     16,659,151       -       9,090,305 5     25,749,456  
Accumulated deficiency     (16,039,022 )     -       -       (16,039,022 )
Members deficit     -       (12,386,375 )     12,386,375 6     -  
Noncontrolling     231,562       -       -       231,562  
Total Stockholder’s Equity (Deficit)     853,178       (12,386,375 )     21,478,557       9,945,360  
                                 
Total Liabilities and Stockholder’s Equity (Deficit)   $ 12,753,792     $ 9,351,082     $ 21,958,557     $ 44,063,431  

 

F-4

 

 

SAFE AND GREEN DEVELOPMENT CORPORATION AND SUBSIDIARIES

ProForma Balance Sheets December 31, 2023 (Unaudited)

 

    Safe and Green Development Corporation     Resource
Group US, LLC		     Adjustments     Combined December 31,
2023		  
Assets                        
Current assets:                        
Cash   $ 3,236     $ 765,277     $ -     $ 768,513  
Accounts receivable, net     -       1,539,330       -       1,539,330  
Inventory     -       282,509       -       282,509  
Prepaid expenses and other current assets     231,989       330,635       -       562,624  
Notes receivable     -       -       -       -  
Current Assets     235,225       2,917,751       -       3,152,976  
                                 
Assets held for sale     4,400,361       -       -       4,400,361  
Land     1,190,655       -       -       1,190,655  
Property and equipment, net     3,569       6,364,945       -       6,368,514  
Project development costs and other non-current assets     65,339       -       -       65,339  
Equity-based investments     3,642,607       -       -       3,642,607  
Intangible assets, net     22,210       41,667       -       63,877  
Due from affiliates     -       293,772       -       293,772  
Right-of-use assets     -       394,378       -       394,378  
Goodwill     -       -       17,487,690 7     17,487,690  
                                 
Total Assets     9,559,966     $ 10,012,513     $ 17,487,690     $ 37,060,169  
                                 
Liabilities and Stockholder’s Equity (Deficit)                                
Current liabilities:                                
Accounts payable and accrued expenses   $ 601,292     $ 1,755,254     $ -     $ 2,356,546  
Due to affiliates     260,000       926,000       -       1,186,000  
Notes payable, current     6,810,897       4,139,566       -       10,950,463  
Notes payable – related party, current     -       4,992,266       480,000 2     5,472,266  
Operating lease liabilities, current     -       36,878       -       36,878  
Finance lease liabilities, current     -       209,540       -       209,540  
Total Current Liabilities     7,672,189       12,059,504       480,000       20,211,693  
                                 
Notes payable, net of current portion     -       4,859,663       -       4,859,663  
Operating lease liabilities, net of current portion     -       362,848       -       362,848  
Finance lease liabilities, net of current portion     -       646,006       -       646,006  
Total Liabilities     7,672,189       17,928,021       480,000       26,080,210  
                                 
Stockholder’s Equity (Deficit)                                
Common stock     510       -       377 3      887  
Preferred stock     -       -       1,500 4      1,500  
Additional paid-in capital     9,017,814       -       9,090,305 5     18,108,119  
Accumulated deficiency     (7,130,547 )     -       -       (7,130,547 )
Members deficit     -       (7,915,508 )     7,915,508 8      -  
Noncontrolling     -       -       -       -  
Total Stockholder’s Equity (Deficit)     1,887,777       (7,915,508 )     17,007,690       10,979,959  
                                 
Total Liabilities and Stockholder’s Equity (Deficit)   $ 9,559,966     $ 10,012,513     $ 17,487,690     $ 37,060,169  

 

F-5

 

 

SAFE AND GREEN DEVELOPMENT CORPORATION AND SUBSIDIARIES

ProForma Statements of Operations For the Three Months Ended March 31, 2025 (Unaudited)

 

    Safe and
Green Development Corporation		     Resource
Group US,
LLC		     Adjustments     Combined
March 31,
2025		  
Revenue:   $ 18,170     $ 5,278,563     $          -     $ 5,296,733  
                                 
Costs of revenue     11,800       3,225,633       -       3,237,433  
                                 
Gross profit     6,370       2,052,930       -       2,059,300  
                                 
General and administrative expenses     1,270,232       2,135,408       -       3,405,640  
                                 
Operating loss     (1,263,862 )     (82,478 )     -       (1,346,340 )
                                 
Other expense:                                
Interest expense     (954,648 )     (756,697 )     -       (1,711,345 )
Interest income     23,688       -       -       23,688  
Gain on settlement of debt             97,498       -       97,498  
Other income     14,829       -       -       14,829  
                                 
Net loss   $ (2,179,993 )   $ (741,677 )   $ -     $ (2,921,670 )

  

F-6

 

 

SAFE AND GREEN DEVELOPMENT CORPORATION AND SUBSIDIARIES

ProForma Statements of Operations For the Three Months Ended March 31, 2024 (Unaudited)

 

    Safe and
Green Development Corporation		     Resource
Group US,
LLC		     Adjustments     Combined
March 31,
2024		  
Revenue:   $ 49,816     $ 4,091,988     $                 -     $ 4,141,804  
                                 
Costs of revenue     -       3,354,307       -       3,354,307  
                                 
Gross profit     49,816       737,681       -       787,497  
                                 
General and administrative expenses     2,551,491       1,919,506       -       4,470,997  
                                 
Operating loss     (2,501,675 )     (1,181,825 )     -       (3,683,500 )
                                 
Other expense:                                
Interest expense     (565,996 )     (470,726 )     -       (1,036,722 )
                                 
Net loss   $ (3,067,671 )   $ (1,652,551 )   $ -     $ (4,720,222 )

 

 

 

F-7

 

 

SAFE AND GREEN DEVELOPMENT CORPORATION AND SUBSIDIARIES

ProForma Statements of Operations For the Year Ended December 31, 2024 (Unaudited)

 

    Safe and Green Development Corporation     Resource
Group US,
LLC		     Adjustments     Combined
December 31,
2024		  
                         
Revenue:   $ 207,552     $ 18,154,944     $               -     $ 18,362,496  
                               
Costs of revenue     182,656       12,524,997       -       12,707,653  
                               
Gross profit     24,896       5,629,947       -       5,654,843  
                               
General and administrative expenses     6,583,802       7,945,899       -       14,529,701  
                               
Operating loss     (6,558,906 )     (2,315,952 )     -       (8,874,858 )
                               
Other expense:                              
Interest expense     (3,474,344 )     (2,160,315 )     -       (5,634,659 )
Gain on sale     1,067,540       -       -       1,067,540  
Interest income     12,107       -       -       12,107  
Other income     45,128       -       -       45,128  
                                 
Net loss   $ (8,908,475 )   $ (4,476,267 )   $ -     $ (13,384,742 )

 

F-8

 

 

SAFE AND GREEN DEVELOPMENT CORPORATION AND SUBSIDIARIES

ProForma Statements of Operations For the Year Ended December 31, 2023 (Unaudited)

 

    Safe and Green Development Corporation     Resource Group US, LLC     Adjustments     Combined
December 31,
2023		  
                         
Revenue:   $ -     $ 16,418,032     $       -     $ 16,418,032  
                               
Costs of revenue     -       13,107,638       -       13,107,638  
                               
Gross profit     -       3,310,394       -       3,310,394  
                               
General and administrative expenses     3,023,448       6,722,364       -       9,745,812  
                               
Operating loss     (3,023,448 )     (3,411,970 )     -       (6,435,418 )
                               
Other expense:                              
Interest expense     (1,178,311 )     (1,540,025 )     -       (2,718,336 )
Gain on sale     -       -       -       -  
Interest income     -       -       -       -  
Other income     1,218       -       -       1,218  
                                 
Net loss   $ (4,200,541 )   $ (4,951,995 )   $ -     $ (9,152,536 )

 

F-9

 

 

NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION

 

Note 1. Basis of Presentation

 

In accordance with ASC 805 - Business Combination, the Company will be considered as the acquirer for financial reporting purposes. Accordingly, for accounting purposes, the Company will record the assets and, identifiable intangibles acquired and liabilities assumed in the Merger at their fair values at the date of acquisition. Any remaining purchase price not allocated to these items will be recorded as goodwill.

 

The unaudited pro forma condensed combined balance sheet and statement of operations as of March 31, 2025 combines the historical unaudited condensed balance sheet and statement of operations of the Company as of March 31, 2025 and the historical unaudited balance sheet and statement of operations of Resource Group US, LLC as of March 31, 2025 on a pro forma basis as if the Merger had been consummated on March 31, 2025. The unaudited pro forma condensed balance sheet and statement of operations for the year ended December 31, 2024 combines the historical condensed statement of operations of the Company the year ended December 31, 2024 and the historical balance sheet and statement of operations of Resource Group US, LLC for the same periods on a pro forma basis as if the Merger had been consummated on January 1, 2024. The unaudited pro forma condensed balance sheet and statement of operations for the year ended December 31, 2023 combines the historical condensed statement of operations of the Company the year ended December 31, 2023 and the historical balance sheet and statement of operations of Resource Group US, LLC for the same periods on a pro forma basis as if the Merger had been consummated on January 1, 2023.

 

The pro forma adjustments reflecting the consummation of the Merger and related transactions are based on certain currently available information and certain assumptions and methodologies that the Company believes are reasonable under the circumstances. The unaudited condensed pro forma adjustments, which are described in the accompanying notes, may be revised as additional information becomes available and is evaluated. Therefore, it is likely that the actual adjustments will differ from the pro forma adjustments, and it is possible the differences may be material. The Company believes that its assumptions and methodologies provide a reasonable basis for presenting all of the significant effects of the Merger and related transactions based on information available to management at the time and that the pro forma adjustments give appropriate effect to those assumptions and are properly applied in the unaudited pro forma condensed combined financial information.

 

The unaudited pro forma condensed combined financial information does not give effect to any anticipated synergies, operating efficiencies, tax savings, or cost savings that may be associated with the Merger. The unaudited pro forma condensed combined financial information is not necessarily indicative of what the actual results of operations and financial position would have been had the Merger and related transactions taken place on the dates indicated, nor are they indicative of the future consolidated results of operations or financial position of the Company. They should be read in conjunction with the historical financial statements and notes thereto of the Company and Medicx.

 

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Note 2. Accounting Policies

 

In connection with the consummation of the Merger, management is performing a comprehensive review of the two entities’ accounting policies. As a result of the review, management may identify differences between the accounting policies of the two entities which, when conformed, could have a material impact on the financial statements of the Company. Based on its initial analysis, management did not identify any differences that would have a material impact on the unaudited pro forma condensed combined financial information. As a result, the unaudited pro forma condensed combined financial information does not assume any differences in accounting policies. 

 

Note 3. Adjustments to Unaudited Pro Forma Condensed Combined Financial Statements

 

The adjustments included in the unaudited pro forma condensed combined balance sheet as of March 31, 2025 and December 31, 2024 and 2023 are as follows: 

 

1. Reflects the preliminary purchase price allocation and elimination of the historical member’s deficit for the year ended December 2024;
   
2. Represents the $480,000 of unsecured 6% promissory notes issued to the Equityholder’s of Resource Group US, LLC in connection with the Membership Interest Purchase Agreement;
   
3. Reflects the issuance of 376,818 shares of the Company’s common stock in connection with the Membership Interest Purchase Agreement;
   
4. Reflects the issuance of 1,500,000 shares of Series A Preferred Stock (which, subject to the approval of the Company’s stockholders, would be convertible into 9,000,000 restricted shares of the Company’s common stock);
   
5. Represents the issuance of: (i) 376,818 shares of the Company’s common stock in connection with the Membership Interest Purchase Agreement valued at the closing price of the Company’s common stock on June 2nd, 2025 of $1.20 (ii) the issuance of 1,500,000 shares of Series A Preferred Stock converted into 9,000,000 shares of the Company’s restricted common stock valued at a 20% discount to the closing price of the Company’s common stock on June 2nd, 2025 of $1.20  
   
6. Reflects the elimination of historical member’s deficit for the year ended December 31 2024.  
   
7. Reflects the preliminary purchase price allocation and elimination of the historical member’s deficit for the year ended December 31, 2023;  
   
8. Reflects the elimination of historical member’s deficit for the year ended December 31 2023.  

 

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