Business Overview

At the heart of SGD's strategy is its commitment to green and sustainable development. The company's current business focus is primarily on the direct acquisition and indirect investment in properties nationally that will be further developed into green single or multi-family projects. To date, the company has acquired three properties and invested in two entities that have acquired two additional properties for future development. However, the company has not yet commenced any development activities.

In addition to its real estate development efforts, SGD has also made a strategic move into the prop-tech space. In the first quarter of 2024, the company acquired a majority interest in Majestic World Holdings LLC (MWH), a prop-tech firm that has created the XENE Home Platform. This advanced AI-powered platform aims to decentralize the real estate marketplace, creating an all-in-one solution that brings together various stakeholders, including banks, institutions, home builders, clients, agents, vendors, gig workers, and insurers, into a seamlessly integrated and structured environment.

The acquisition of MWH is a significant step forward for SGD, as it allows the company to leverage cutting-edge technology to streamline the real estate transaction process and offer a more cost-effective alternative to traditional models. The XENE Home Platform, which was launched in April 2024, is expected to be a game-changer in the industry, saving time and resources for all parties involved.

Financials and Liquidity

SGD's financial performance has been mixed, with the company reporting a net loss of $3,067,671 for the three months ended March 31, 2024, compared to a net loss of $904,503 for the same period in the previous year. The company's annual net loss for the year ended December 31, 2023, was $4,200,541, and it did not generate any revenue during the year. The company's annual operating cash flow and free cash flow for the year ended December 31, 2023, were -$4,570,603 and -$4,584,015, respectively.

Despite these losses, SGD has been able to fund its operations through a combination of bridge note financing, project-level financing, and the issuance of equity and debt securities. As of March 31, 2024, the company had cash of $77,537, which represents a significant increase from the $3,236 it had on hand as of December 31, 2023.

One of the company's key sources of funding has been its relationship with Peak One Opportunity Fund, L.P. In November 2023, SGD entered into a securities purchase agreement with Peak One, pursuant to which the company issued convertible debentures and warrants in a private placement offering. The company has also entered into an equity purchase agreement with Peak One, which gives it the right, but not the obligation, to direct Peak One to purchase up to $10 million in shares of the company's common stock.

While SGD's financial performance has been challenging, the company's liquidity position has been bolstered by these financing activities. However, the company's auditors have expressed substantial doubt about its ability to continue as a going concern, and the company will need to continue to raise capital to fund its operations and development plans.

Risks and Challenges

SGD faces a number of risks and challenges that investors should be aware of. The company's limited operating history makes it difficult to evaluate its future business prospects, and its financial condition and results of operations could be negatively affected if it fails to grow or manage its growth effectively.

The company also operates in a highly competitive market for investment opportunities, and it may be unable to identify and complete acquisitions of real property assets at reasonable prices. Additionally, the company's property portfolio has a high concentration of properties located in certain states, which could expose it to regional economic and market conditions.

Another key risk is the potential for development and construction delays, which could result in increased costs and risks. The company also relies on third-party suppliers and long supply chains, and any significant interruption in its supply chains could adversely affect its ability to timely and efficiently access raw materials that meet its standards for quality.

Finally, SGD is subject to various legislative, regulatory, accounting, and tax rules, and any changes to these rules or actions brought to enforce them could adversely affect the company's business.

Outlook

Despite these risks and challenges, SGD remains optimistic about its future prospects. The company has outlined an ambitious growth strategy that focuses on expanding its presence in markets with favorable job formation and a favorable demand/supply ratio for multifamily housing.

In addition to its real estate development efforts, SGD is also excited about the potential of its prop-tech business. The XENE Home Platform is expected to be a game-changer in the industry, and the company is confident that it will be able to leverage this technology to drive growth and create value for its shareholders.

While the company has not provided any specific financial guidance, it has indicated that it expects to incur increasing losses in the future as it commences development of its McLean Property and invests in the further development of the XENE Platform and the MyVONIA Asset.

Conclusion

SGD is a company with a unique and promising value proposition in the real estate development and prop-tech spaces. While the company's financial performance has been challenging, its innovative approach to development and its strategic acquisition of MWH suggest that it has the potential to disrupt the industry and create significant value for its shareholders.

Investors who are willing to take on the risks associated with the company's limited operating history and competitive landscape may find SGD to be an attractive investment opportunity. However, it will be important for the company to continue to execute on its growth strategy and address the concerns raised by its auditors regarding its ability to continue as a going concern.

Overall, SGD is a company to watch in the real estate and prop-tech sectors, and its future performance will be closely monitored by investors and industry observers alike.