Good day, and welcome to SNG (sic) [ SG ] Blocks Third Quarter 2020 Earnings Conference Call and Webcast. Today's conference call is being recorded. At this time, I would like to turn the conference over to Stephen Swett, Investor Relations. Please go ahead.

Good afternoon. Thank you all for joining us for our third quarter 2020 earnings conference call. With me today is Paul Galvin, Chief Executive Officer, SG Blocks; and Gerald Sheeran, Acting Chief Financial Officer of SG Blocks. Press release detailing our results was issued this afternoon just after market close and is available on the company's website at www.sgblocks.com. Before I turn the call over to Paul, please remember that certain statements made during this presentation are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts, contained in this presentation, including statements regarding the company's future operations and financial position, business strategy, plans and objectives of management for future operations are forward-looking statements. In some cases, forward-looking statements can be identified by terminologies such as believes, may, estimates, continue, anticipates, intends, should, plan, expects, predict, potential or the negative of these terms or other similar expressions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. These forward-looking statements are subject to a number of risks and uncertainties and assumptions described, including those set forth in our filings with the SEC, which are available on our website at www.sgblocks.com. You should not rely upon forward-looking statements as predictions of future events. We cannot assure you that the events and circumstances reflected in the forward-looking statements will be achieved or occur. Finally, this conference call is being webcast. The webcast is available on the Investor Relations section on our website. Now I'll turn the call over to Paul.

Thank you, Steve, and welcome to the SG Blocks Third Quarter 2020 Financial Results Conference Call. The third quarter was a game-changing quarter for SG Blocks, during which we accelerated our business on every front. We made progress and announced significant activity in all of our verticals and built on the momentum we reported in the first half of the year. As we execute in the coming quarters, we believe our results will demonstrate the bottom line benefit of our accomplishments so far this year, setting the stage for sustained growth in the fourth quarter and into 2021. But before I touch on recent activity and results of the quarter, we have many new investors, and I think it's important to step back and provide a quick overview of SG Blocks, who we are, what we do and how we are positioned as the greenest alternative for almost any project that utilizes space. SG Blocks is the premier innovator and designer of some of the world's most iconic container-based structure. Simply put, we repurpose shipping containers into vibrant and creative new space that can be used for any real estate use, housing, health care, office, education, retail, lodging and so on. The SG stands for safe and green. Safe because we use maritime-grade shipping containers that are durable and highly resistant to man-made or natural disaster, and green because transforming these containers into usable structure is extremely environmentally friendly due to how they are built, where they are built, the low levels of energy needed to repurpose them and the speed with which they can be deployed. By using SG Blocks, our customers eliminate the need for a less efficient, highly wasteful and environmentally threatening ground up new construction. In our early days, we had to prove out the power…

Thank you, Paul. Beginning with the income statement. For the third quarter of 2020, we reported revenue of approximately $575,000 compared to approximately $184,000 for the third quarter of 2019. This increase was driven by approximately $306,000 increase in construction revenue and approximately $86,000 increase in engineering service revenue. Gross profit in the third quarter of 2020 was approximately $194,000 compared to a gross loss of approximately $182,000 in the year ago quarter. The gross profit margin in the third quarter of 2020 was approximately 34%. Operating expenses in the third quarter of 2020 was approximately $1.72 million compared to approximately $1.09 million in the year ago quarter. The increase was primarily driven by higher payroll and related expenses and higher G&A expenses related to legal and consulting expenses, partially offset by lower marketing and business development expense. For the third quarter of 2020, our net loss was approximately $1.48 million or negative $0.17 per share compared to a net loss of approximately $1.33 million or negative $4.66 per share in the third quarter of 2019. Adjusted EBITDA loss for the third quarter of 2020 was approximately $1.02 million compared to a loss of $1.09 million in the same quarter of last year. Turning to the balance sheet. At September 30, 2020, we had a total assets of $26.3 million compared to $6.6 million at December 31, 2019. We had cash and cash equivalents of approximately $13 million as of September 30, 2020, which compares to approximately $1.6 million at December 31, 2019. At this time, as Paul noted, we have a strong and flexible capital structure with no debt, and we believe we're significantly capitalized to support our near-term working capital requirements. As a final note, if you have any questions or would like to speak with me or our Investor Relations team, you can e-mail us at investors@sgblocks.com. Thank you for joining us today, and we look forward to speaking with you again next quarter.

This concludes today's teleconference. You may disconnect your line at this time. Thank you for your participation.