EX-99.4 3 ea024911401ex99-4_safe.htm UNAUDITED PRO FORMA COMBINED FINANCIAL INFORMATION OF SAFE AND GREEN DEVELOPMENT CORPORATION

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   -    -    22,699,9701   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    480,0002   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    -    3773   2,632 
Preferred stock   -    -    1,5004   1,500 
Additional paid-in capital   18,352,993    -    9,090,3055   27,443,298 
Accumulated deficiency   (18,219,015)   -    -    (18,219,015)
Members deficit   -    (13,127,788)   13,127,7886   - 
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   -    -    21,958,5571   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    480,0002   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    -    3773   1,864 
Preferred stock   -    -    1,5004   1,500 
Additional paid-in capital   16,659,151    -    9,090,3055   25,749,456 
Accumulated deficiency   (16,039,022)   -    -    (16,039,022)
Members deficit   -    (12,386,375)   12,386,3756   - 
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   -    -    17,487,6907   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    480,0002   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    -    3773    887 
Preferred stock   -    -    1,5004    1,500 
Additional paid-in capital   9,017,814    -    9,090,3055   18,108,119 
Accumulated deficiency   (7,130,547)   -    -    (7,130,547)
Members deficit   -    (7,915,508)   7,915,5088    - 
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.

 

F-10

 

 

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.  

 

F-11