Executive Summary

Q3 revenue accelerated to $3.52 million, up from $1.40 million in Q2 and $0.08 million in Q3 2024, driven by engineered soils and logistics; gross margin improved to ~26% from ~23% in Q2 .
The quarter missed management’s prior Q3 revenue outlook of “approximately $4 million” as reported in August; actual came in at $3.52 million (miss vs guidance) .
Losses narrowed sequentially: operating loss improved to $(2.33) million (from $(4.93) million in Q2); net loss improved to $(4.35) million (from $(5.72) million in Q2), though interest expense rose to $2.00 million .
Strategic catalysts: Microtec milling system purchase to enable high-margin growing media in Q4, new equipment increasing throughput, and a $8.175 million net proceeds private placement alongside retirement of all outstanding convertible debt (balance-sheet flexibility) .
Management signaled continued revenue growth and margin strengthening into 2026 as integration expenses fade (margin trajectory positive) .

What Went Well and What Went Wrong

Record revenue ramp with margin expansion: “achieving record quarterly revenue growth… Gross Margin: Approximately 26%, up from ~23% in Q2 2025” (positive utilization and efficiencies) .
Capacity and product mix catalyst: “full purchase of the Company’s new Microtec milling system… will enable… producing and selling high-margin growing media… expected to meaningfully enhance profitability” .
Capital actions and de-risking: retirement of all outstanding convertible debt (“enhances our financial flexibility”) and $8.175 million net proceeds private placement to fund equipment and working capital (supports throughput and growth) .

Revenue short of outlook: management’s August guide for “approximately $4 million” Q3 revenue contrasted with actual $3.52 million (miss vs guidance) .
Elevated interest burden and losses: Q3 interest expense rose to $2.00 million, contributing to a net loss of $(4.35) million (though improved sequentially) .
Balance sheet/leverage and going concern: substantial current liabilities ($32.58 million), high short-term debt, and going concern disclosure noting need for additional financing (risk to execution) .

Metric	Q3 2024	Q2 2025	Q3 2025
Revenue ($USD)	$81,210	$1,402,511	$3,515,708
Gross Profit ($USD)	$81,210	$544,955	$908,623
Gross Margin (%)	N/A	~23%	~26%
Operating Loss ($USD)	$(1,390,763)	$(4,934,346)	$(2,332,305)
Interest Expense ($USD)	$(951,239)	$(830,196)	$(2,004,260)
Net Loss ($USD)	$(2,342,002)	$(5,723,955)	$(4,350,321)
Diluted EPS ($)	$(2.61)	$(2.29)	$(1.12)

Segment revenue breakdown:

Segment Revenue ($USD)	Q2 2025	Q3 2025
Technology	$425,197	$759,698
Resource (engineered soils/logistics)	$977,314	$2,756,010

KPIs and additional operating metrics:

Metric	Period	Previous Guidance	Current	Change
Revenue ($USD)	Q3 2025	“Approximately $4 million” (Aug press release)	$3,515,708	Lower vs guidance (miss)
Gross Margin (%)	Q3 2025 vs Q2	~23% in Q2	~26% in Q3	Raised vs prior quarter
Integration Expenses	Q4 2025	—	“Integration expenses… continue through the fourth quarter”	Maintained elevated costs
Capacity/Product Mix	Q4 2025	—	Microtec mill arrival enabling high-margin growing media	New/positive qualitative guidance
Liquidity/Capital	Q4 2025	—	$8.175M net proceeds private placement; retirement of convertible debt	Improved flexibility

No Q3 2025 earnings call transcript was available in our document catalog. Themes are derived from Q2/Q3 earnings press releases and filings.

Topic	Previous Mentions (Q-2)	Current Period (Q3)	Trend
Engineered soils/logistics scale	Integration synergies and accelerated second-half performance; $1.4M Q2 revenue	New equipment boosting throughput; resource segment revenue $2.76M	Scaling up
Margin trajectory	Q2 margin ~23%	Q3 margin ~26% on higher utilization	Improving
Product innovation	Exit legacy software; focus on core real estate/compost/transport	Microtec mill to enable high-margin growing media	Positive mix shift
Capital structure	Forbearance and ongoing debenture matters noted in filings	$8.175M net proceeds private placement; all convertible debt retired	Balance sheet de-risking
Strategic portfolio	Considered crypto treasury reserve (no LOI; Resource remains core)	Continued focus on resource operations; equipment additions	Focus consolidated

“Our third quarter results show our continued focus on establishing a scalable foundation for the next stage of growth… We expect these steps to support continued revenue growth and margin strengthening as we head into 2026.” — CEO David Villarreal .
“Eliminating this debt enhances our financial flexibility and supports our long-term goal of building sustainable value for our shareholders.” — CEO David Villarreal on retiring convertible debt .
Use of proceeds from private placement includes accelerating operational expansion at the Florida Resource Group site and purchasing additional processing equipment to increase throughput and open new revenue channels (capacity-driven growth) .

No Q3 2025 earnings call/Q&A transcript available. No analyst Q&A themes to report from company documents.

Wall Street consensus coverage appears limited. We did not find S&P Global consensus EPS or revenue estimates for Q3; the datasets reflected actuals rather than forecasts (i.e., no consensus values). As a result, we cannot assess beat/miss vs Street estimates for EPS or revenue (S&P Global coverage appears unavailable for SGD at this time).
Q3 revenue was below management’s own August outlook (“~$4M” vs actual $3.52M) — a useful proxy for expectations in absence of broad sell-side coverage .

Revenue scaling is intact but trajectory fell short of near-term guidance; watch Q4 volume as new equipment and the Microtec mill begin to contribute (rebound potential) .
Margin expansion to ~26% reflects utilization and operational efficiencies; further improvement hinges on product mix shifting to high-margin growing media (positive margin mix) .
Sequential loss reduction suggests operating leverage as volumes grow; monitor interest expense and debt service to sustain net loss improvements (profit path contingent on financing costs) .
Balance sheet actions (retiring convertible debt; $8.175M net proceeds private placement) reduce financing overhang and fund capacity expansion (improved flexibility) .
Liquidity risk remains: substantial short-term obligations and going concern disclosure necessitate continued access to capital and successful asset monetization (execution risk) .
Segment momentum: Resource-driven revenue more than doubled vs Q2; technology segment (operational within soils/logistics platform) also grew; focus is on sustained throughput and feedstock supply (operational scale focus) .
Near-term trading: stock may react to delivery of Q4 operational milestones (Microtec mill commissioning, throughput gains) and any incremental financing updates (event-driven catalysts) .

Sources: SEC filings and company press releases cited above.