SG Blocks Reports First Quarter 2021 Financial Results - Seite 2

First Quarter 2021 and Subsequent Operational Highlights:

At March 31, 2021, the Company had 16 projects under contract, compared to 21 projects under contract at December 31, 2020. At March 31, 2021, the construction backlog was approximately $22.9 million, as compared to $25.1 million as of December 31, 2020. The Company’s backlog does not include any projects related to recently launched SG Development Corp. and does not include ongoing medical testing.

Concentrated Market Activity

Medical Testing & Services

SG Blocks continues to provide innovative structures, labs, and testing solutions to support the fight against, and recovery from, the COVID-19 pandemic. Our modular solutions can be quickly and efficiently deployed at key locations for much-needed point-of-care patient access, to support the continue reopening and recovery of the U.S. economy.

In January, the Company executed an agreement with National Pain Centers to provide COVID-19 testing near O'Hare airport, supporting the needs of passengers, airport employees and the public at-large. This facility opened for testing in February and was subsequently re-leased to a consortium of government entities at a profit for the company.

Subsequent to quarter-end, in May, the Company announced that it is working with Stone Clinical Laboratories (“Stone Labs”) to bring COVID-19 testing at the Food Network’s annual Wine & Food Festival in Miami’s South Beach. Additionally, the Company and Stone Labs will offer COVID-19 testing for employees, vendors, VIP guests and attendees at the “Air & Sea Show & Music Explosion,” in Miami Beach. Stone Labs has secured an additional 43 entertainment events which require COVID-19 testing in 2021, and the Company expects to continue its collaboration with Stone Labs going forward.

Manufacturing

After years of outsourcing SG Blocks is committed to in-house manufacturing excellence. While there are a number of legacy project commitments that will be completed at a cash loss in 2021, going forward, the Company expects to manufacture future projects at a margin of approximately 15%.

After acquiring the Echo DCL manufacturing facility in Durant, Oklahoma, in 2020, in January 2021, the Company announced a new 10,300 square foot building extension at its SG Echo manufacturing facility in Durant, Oklahoma that will enhance the manufacturing efficiencies of the current facility. We continue to explore all avenues to increase our manufacturing footprint to keep pace with our internally driven demand.