Executive Summary

No commercial revenue reported; operating expenses fell sharply YoY to $3.0M from $19.2M, driving a smaller net loss of $3.0M and diluted EPS of $(0.02) for Q2 2023 .
Liquidity stood at $11.9M (including ~$11.4M undrawn on a related-party credit facility) at quarter-end; the company also raised ~$3.1M in a May private placement and continues to market its EB-5 $500M capital program (44,010 shares sold to date, $1.76M proceeds) .
DEA registration for bulk cannabis manufacturing is in place (April 28, 2023), enabling federally legal cannabis activities for research and pharma supply; management is progressing greenhouse outfitting and operational readiness .
Subsequent events highlight capital structure actions (debt fully settled into shares/warrants at a premium conversion) and a Nasdaq minimum bid price deficiency notice, both potential stock catalysts/risks .

What Went Well and What Went Wrong

What Went Well

DEA registration received in April 2023, enabling federally authorized cannabis production, research supply, and exports, differentiating BGXX from most U.S. operators .
Operating expenses declined dramatically YoY (Q2 OpEx $3.0M vs $19.2M), with lower stock-based compensation and professional fees versus prior-year listing-related costs; net loss narrowed accordingly .
Funding and liquidity actions: ~$3.1M raised via private placement; EB-5 program marketing continued with $1.76M proceeds to date; credit facility availability remained ~$11.4M at quarter-end .
- “We are focused on making strategic decisions and realizing the full potential of the opportunity and maximizing shareholder value with minimum further dilution.” — Terry Rafih, Executive Chairman .

What Went Wrong

No revenue yet as the company is still constructing and outfitting facilities; Q2 revenue was $0, reinforcing timing risk to commercialization .
Going-concern risks: negative working capital of ~$7.3M and accumulated deficit of ~$39.7M at June 30, 2023; dependence on external financing persists .
Governance/market risks: Nasdaq notified BGXX of non-compliance with the $1.00 minimum bid rule (Aug 16); the company has an initial 180-day remediation window (potential reverse split consideration), creating listing overhang .

Financial Results

Income Statement Snapshot (USD)

Metric	Q2 2022	Q1 2023	Q2 2023
Revenue ($)	$0	$0	$0
Total Operating Expenses ($)	$19,181,093	$2,612,623	$2,986,506
Loss from Operations ($)	$(19,181,093)	$(2,612,623)	$(2,986,506)
Net Loss ($)	$(19,181,093)	$(2,613,265)	$(2,992,171)
Diluted EPS ($)	$(0.12)	$(0.02)	$(0.02)

Liquidity and Capital (USD)

Metric	Dec 31, 2022	Mar 31, 2023	Jun 30, 2023
Cash and Equivalents ($)	$414,574	$422,502	$507,445
Credit Facility Availability ($)	—	~$11.5M	~$11.4M
Accounts Payable ($)	$5,033,831	$6,360,662	$5,408,503
Accrued Liabilities ($)	$447,325	$938,356	$945,911
Related Party LOC Outstanding ($)	$3,686,107	$3,460,092	$3,561,657

KPIs and Operating Detail

KPI	Q1 2023	Q2 2023
Equity-based Compensation ($)	$823,900	~$1,400,000 (part of OpEx)
Weighted Avg Shares (Basic/Diluted)	173,445,814	176,240,466
EB-5 Program — Proceeds to Date	$880,000 (22,005 shares at $39.99)	$1.76M (44,010 shares at $39.99)
Private Placement Proceeds	—	~$3,104,750 net / ~$3.5M gross

Note: Segment breakdown not applicable; company has not commenced commercial operations .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Capital Raise (EB-5)	Ongoing	Plan to raise ~$500M via USCIS EB-5 to fund greenhouse build/operations	Continued marketing; “working diligently to finalize agreements”	Maintained
Balance Sheet Strategy	2023	Aim for “minimum debt and minimum share dilution”	Reiterated; executed debt-for-equity (post-Q2) to cancel ~$3.62M obligation via shares/warrants	Executing plan
Alterola Acquisition	2023	25% stake acquired; intent to move forward on remaining 75%	“Outlined plans to move forward”; negotiating new agreement	Maintained/progress
Liquidity Facility	2023	$15M LOC (amended capacity), undrawn availability ~$11.5M as of Q1	Undrawn availability ~$11.4M at Q2; total liquidity $11.9M	Maintained access

Earnings Call Themes & Trends

No Q2 2023 earnings call transcript was found (we searched and none was available) [List: 0 earnings-call-transcript].

Topic	Previous Mentions (Q1 2023)	Current Period (Q2 2023)	Trend
Regulatory/DEA	DEA registration received (April 28, 2023) enabling bulk manufacture; MOA terms outlined	Confirmed DEA registration as a core strategic milestone	Positive, foundational
Capital Raising	EB-5 program initiated; $880k proceeds; LOC in place	EB-5 proceeds to date $1.76M; $3.1M private placement completed	Building, early-stage
Operations/Greenhouse	Outfitting and construction in progress	Further outfitting of greenhouse; continued preparation	Progressing
Nasdaq Listing Risk	—	Nasdaq minimum bid price deficiency notice (Aug 16)	Negative risk emerging

Management Commentary

“We are focused on making strategic decisions and realizing the full potential of the opportunity and maximizing shareholder value with minimum further dilution.” — Terry Rafih, Executive Chairman .
“I am truly excited about the future of Bright Green Corporation… This Agreement reaffirms my confidence in Bright Green’s potential for growth….” — Lynn Stockwell (regarding debt settlement into shares/warrants) .

Q&A Highlights

No Q2 2023 earnings call/Q&A transcript available (none found) [List: 0 earnings-call-transcript].

Estimates Context

Wall Street consensus estimates via S&P Global were unavailable for BGXX (no mapping/coverage returned). As a result, no vs-estimate comparisons can be made for Q2 2023 [SpgiEstimatesError from GetEstimates].

Key Takeaways for Investors

Execution hinges on converting DEA authorization into revenue; commercialization timing remains the central risk given zero revenue this quarter .
Cost discipline shows up in OpEx normalization vs last year’s listing-related spike, supporting narrower losses at current pre-revenue stage .
Liquidity is adequate near term (cash + undrawn LOC), but negative working capital and going-concern language underscore reliance on external financing until revenue starts .
Capital actions (private placement and EB-5 program) plus debt settlement at a premium reduce near-term balance sheet pressure but add dilution risk if equity issuance continues .
Regulatory position (DEA) is a strategic moat; successful customer onboarding (DEA-registered researchers/manufacturers) would be a meaningful catalyst .
Nasdaq minimum bid price deficiency introduces listing risk and potential corporate actions (e.g., reverse split) if shares don’t recover above $1.00, a near-term trading overhang .
Near-term focus: milestone-driven updates (quota approvals, initial sales agreements, greenhouse commissioning), funding progress on EB-5, and any revenue initiation will likely drive stock narrative .

Bright Green Corp (BGXX)·Q2 2023 Earnings Summary