Orlando, FL, Jan. 19, 2023 (GLOBE NEWSWIRE) -- The Sustainable Green Team, LTD. (OTCQX: SGTM) (“SGTM” or the “Company”), an industry-leading wholesale manufacturer and supplier of consumer and industrial wood-based mulch, soil, and lumber products nationwide, announced today that it amended its quarterly report for the period ended October 1, 2022. The restatement includes amended condensed consolidated financial statements for the three and nine months ended October 1, 2022, along with their accompanying footnotes.
SGTM has recently partnered with VRM Biologik Group, embarking on producing a new soil technology in conjunction with that partnership. The Company will produce a new product line, HumiSoil®, which has resulted in a change of accounting estimate related to SGTM’s inventory valuation. When the cycle counts were completed for the period ended October 1, 2022, certain stock was excluded from the inventory valuation due to system limitations on how to capture and value that inventory. The Company, therefore, took a charge to Cost of Revenue while researching the root cause of the excluded inventory. The Company has since identified the source of the deficiency and established procedures to properly account for and value the inventory associated with the production of HumiSoil®.
SGTM has valued its excluded inventory according to the updated procedures, resulting in an adjustment to Inventory and Cost of Revenue of approximately $6 million, increasing the Company’s total assets from $75,606,058 to $81,666,905. Furthermore, the adjustment increased the Company’s total gross profit from $(1,804,949) to $4,255,898 and its net income from $(4,629,242) to $1,229,626 for the three months ended October 1, 2022. For the nine months ended October 1, 2022, the adjustment increased the Company’s total gross profit from $(492,645) to $5,568,202 and a net income from $(4,869,563) to $989,305. These financial statement changes have been disclosed within the uploaded Amended Financial Statements and Notes filed with OTCMarkets.
About Sustainable Green Team, Ltd. (SGTM)
The Sustainable Green Team Ltd. (“SGTM” or the “Company”), is a wholesale manufacturer and supplier of wood-based mulch, soil, and lumber products, selling directly to mass merchandisers, home centers, hardware stores, nurseries, garden centers, convenience stores, food stores and drug stores, in addition to wholesalers and distributors. The Company also provides arbor care and storm recovery services at the residential, commercial, and municipal levels while offering green waste solutions to large- and small-scale waste disposal and recycling companies located throughout the southeastern United States. The Company’s subsidiary, Mulch Manufacturing Inc., is the largest provider of cypress mulch in the country.
The Company has entered into an agreement with Australia-based VRM Biologik Group to bring VRM’s world-leading soil moisture technology to the U.S. at scale. HumiSoil® and XLR8 Bio® are soil treatment products that rebuild soil hydration on a cellular level, improving the soil, vegetation and agricultural products it supports. The Company will make HumiSoil® and XLR8 Bio® available for home gardens and lawns throughout the U.S. to help relieve water use in cities and to help VRM Biologik Group in its mission to restore productivity in depleted topsoil in 25 percent of the world’s arable land.
To learn more, please visit: https://www.thesustainablegreenteam.com or feel free to visit SGTM’s YouTube Channel.
SAFE HARBOR ACT
Forward-Looking Statements are included within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements regarding our expected future financial position, results of operations, cash flows, financing plans, business strategy, products and services, competitive positions, growth opportunities, plans and objectives of management for future operations, listing on the CSE, including words such as "anticipate," "if," "believe," "plan," "estimate," "expect," "intend," "may," "could," "should," "will," and other similar expressions are forward-looking statements and involve risks, uncertainties and contingencies, many of which are beyond our control, which may cause actual results, performance, or achievements to differ materially from anticipated results, performance, or achievements. We are under no obligation to (and expressly disclaim any such obligation to) update or alter our forward-looking statements, whether as a result of new information, future events or otherwise.
Company Contact
Nickolas S. Tabraue
Chief Compliance Officer and
Chief Investor Relations
(786) 375-7281
ntabraue@sgtmltd.com
