Safe & Green (SGBX) 10-Q 14 Nov 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Nov. 13, 2018
Document and Entity Information [Abstract]
Entity Registrant Name	SG BLOCKS, INC.
Entity Central Index Key	1,023,994
Trading Symbol	SGBX
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Type	10-Q
Document Period End Date	Sep. 30, 2018
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,018
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		4,260,041

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 2,913,397	$ 4,870,824
Short-term investment		30,033
Accounts receivable, net	2,758,205	3,005,875
Costs and estimated earnings in excess of billings on uncompleted contracts	107,689	61,175
Prepaid expenses and other current assets	201,812	183,890
Total current assets	5,981,103	8,151,797
Property, plant and equipment, net	72,707	6,796
Goodwill	4,162,173	4,162,173
Intangible assets, net	2,591,215	3,028,247
Investment in and advances to equity affiliates	6,956
Total Assets	12,814,154	15,349,013
Current liabilities:
Accounts payable and accrued expenses	1,987,611	2,148,091
Billings in excess of costs and estimated earnings on uncompleted contracts	2,081,740	1,673,048
Total current liabilities	4,069,351	3,821,139
Commitments and Contingencies
Stockholders' equity:
Preferred stock, $1.00 par value, 5,405,010 shares authorized; 0 issued and outstanding as of September 30, 2018 and December 31, 2017
Common stock, $0.01 par value, 300,000,000 shares authorized; 4,260,041 issued and outstanding as of September 30, 2018 and December 31, 2017	42,601	42,601
Additional paid-in capital	17,586,945	17,304,529
Accumulated deficit	(8,832,298)	(5,819,256)
Total SG Blocks, Inc. stockholders' equity	8,797,248	11,527,874
Non-controlling interests	(52,445)
Total stockholders' equity	8,744,803	11,527,874
Total Liabilities and Stockholders' Equity	$ 12,814,154	$ 15,349,013

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 1	$ 1
Preferred stock, shares authorized	5,405,010	5,405,010
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	4,260,041	4,260,041
Common stock, shares outstanding	4,260,041	4,260,041

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Revenue:
Revenue	$ 2,082,825	$ 1,394,952	$ 5,932,150	$ 3,001,279
Cost of revenue:
Cost of revenue	1,857,985	1,297,055	5,512,140	2,604,366
Gross profit	224,840	97,897	420,010	396,913
Operating expenses:
Payroll and related expenses	611,906	749,407	1,589,935	1,385,005
General and administrative expenses	557,078	324,794	1,538,441	1,048,853
Marketing and business development expense	133,378	56,343	311,965	122,529
Pre-project expenses		11,657	49,964	28,304
Total	1,302,362	1,142,201	3,490,305	2,584,691
Operating loss	(1,077,522)	(1,044,304)	(3,070,295)	(2,187,778)
Other income (expense):
Interest expense				(330,388)
Interest income		3		11
Other income		1,000	5,768	1,000
Loss on debt conversion				(1,018,475)
Change in fair value of financial instruments				96,327
Loss from equity affiliates	(960)		(960)
Total	(960)	1,003	4,808	(1,251,525)
Loss before income taxes	(1,078,482)	(1,043,301)	(3,065,487)	(3,439,303)
Income tax expense
Net loss	(1,078,482)	(1,043,301)	(3,065,487)	(3,439,303)
Less: Net loss attributable to non-controlling interests	(52,445)		(52,445)
Net loss attributable to common stockholders of SG Blocks, Inc.	$ (1,026,037)	$ (1,043,301)	$ (3,013,042)	$ (3,439,303)
Net loss per share attributable to SG Blocks, Inc. - basic and diluted:
Basic and diluted	$ (0.24)	$ (0.25)	$ (0.71)	$ (2.09)
Weighted average shares outstanding:
Basic and diluted	4,260,041	4,177,890	4,260,041	1,647,916
Block sales
Revenue:
Revenue			$ 42,799
Cost of revenue:
Cost of revenue			33,084
Construction services
Revenue:
Revenue	2,033,769	1,326,005	5,307,168	2,728,462
Cost of revenue:
Cost of revenue	1,764,030	1,242,113	5,056,971	2,375,139
Engineering services
Revenue:
Revenue	49,056	68,947	582,183	272,817
Cost of revenue:
Cost of revenue	$ 93,955	$ 54,942	$ 422,085	$ 229,227

Condensed Consolidated Statem_2

Condensed Consolidated Statement of Changes in Stockholders' Equity (Unaudited) - 9 months ended Sep. 30, 2018 - USD ($)	Total	$0.01 Par Value Common Stock	Preferred Stock	Additional Paid-in Capital	Accumulated Deficit	SG Blocks Stockholders' Equity	Non-controlling Interests
Beginning Balance at Dec. 31, 2017	$ 11,527,874	$ 42,601		$ 17,304,529	$ (5,819,256)	$ 11,527,874
Beginning Balance, Shares at Dec. 31, 2017		4,260,041
Stock-based compensation	282,416			282,416		282,416
Net loss	(3,065,487)				(3,013,042)	(3,013,042)	(52,445)
Ending Balance at Sep. 30, 2018	$ 8,744,803	$ 42,601		$ 17,586,945	$ (8,832,298)	$ 8,797,248	$ (52,445)
Ending Balance, Shares at Sep. 30, 2018		4,260,041

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash flows from operating activities:
Net loss	$ (3,065,487)	$ (3,439,303)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation expense	3,227	2,083
Amortization of discount on convertible debentures		330,388
Amortization of intangible assets	442,031	440,507
Interest income on short-term investment	(4)	(12)
Loss on conversion of convertible debentures		1,018,475
Change in fair value of financial instruments		(96,327)
Stock-based compensation	282,416	649,204
Loss on equity affiliates	960
Changes in operating assets and liabilities:
Accounts receivable	247,670	(122,679)
Costs and estimated earnings in excess of billings on uncompleted contracts	(46,514)	(25,875)
Prepaid expenses and other current assets	(17,922)	(4,453)
Inventory		9,445
Intangible assets		(28,820)
Accounts payable and accrued expenses	(160,480)	576,952
Billings in excess of costs and estimated earnings on uncompleted contracts	408,692	754,437
Deferred revenue		(72,788)
Net cash used in operating activities	(1,905,411)	(8,766)
Cash flows from investing activities:
Purchase of property, plant and equipment	(69,137)	(4,192)
Purchase of intangible asset	(5,000)
Proceeds from short-term investment	30,037
Investment in and advances to equity affiliates	(7,916)
Net cash used in investing activities	(52,016)	(4,192)
Cash flows from financing activities:
Proceeds from public stock offering, net of offering costs		7,062,194
Payments on convertible debentures		(1,500,000)
Net cash provided by financing activities		5,562,194
Net increase (decrease) in cash and cash equivalents	(1,957,427)	5,549,236
Cash and cash equivalents - beginning of period	4,870,824	549,100
Cash and cash equivalents - end of period	2,913,397	6,098,336
Supplemental disclosure of non-cash financing activities:
Conversion of convertible debentures to common stock		2,583,334
Conversion of preferred stock to common stock		$ 1,801,670

Description of Business

Description of Business	9 Months Ended
	Sep. 30, 2018
Description of Business [Abstract]
Description of Business	1 Description of Business SG Blocks, Inc. (the “Company”) provides two Since the Company’s inception, it has generated revenues from construction and project management services related to the use and modification of Modules in construction. Reverse Stock Split On February 28, 2017, the Company effected a 1-for-3 reverse stock split of its then-outstanding common stock and preferred stock, which has since been converted. All share and per share amounts set forth in the consolidated financial statements of the Company have been retroactively restated to reflect the split as if it had occurred as of the earliest period presented. Public Offering of Common Stock On June 27, 2017, the Company completed a public offering of its common stock (the “Public Offering”). In connection with the Public Offering, the Company sold 1,500,000 shares of common stock at a public offering price of $5.00 per share, resulting in aggregate net proceeds of $6,826,558 after deducting underwriting discounts and commissions and related expenses of $673,442. On July 12, 2017, the underwriters of the Public Offering exercised their option to purchase an additional 225,000 shares of common stock, resulting in net proceeds of $1,046,250 after deducting underwriting discounts and commissions and related expenses of $78,750. In addition, the Company incurred additional expenses related to the offering in the amount of $813,195. In connection with the Public Offering and as compensation to the underwriters, the Company issued warrants to purchase an aggregate of 86,250 shares of the Company’s common stock, at an exercise price of $6.25 per share, to certain affiliates of the underwriters. See Note 9 The Company incurred a total of $1,565,386 in issuance costs in connection with the Public Offering.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2018
Summary of Significant Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Interim financial information – The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8 nine months ended September 30, 2018 December 31, 2018 The condensed consolidated financial statements and notes should be read in conjunction with the financial statements and notes for the year ended December 31, 2017 December 31, 2017 Basis of consolidation – The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, SG Building Blocks, Inc. and those entities in which it has a controlling interest. The Company consolidates entities that it controls due to ownership of a majority voting interest, and it consolidates variable interest entities “VIEs” when it has variable interests and is the primary beneficiary. The Company's share of earnings or losses of nonconsolidated affiliates is included in the Company's consolidated operating results using the equity method of accounting. All intercompany balances and transactions are eliminated. Certain prior period amounts have been reclassified to conform to the current period’s presentation. The Company conducts some of its operations through joint ventures, which operate through partnerships, corporations, undivided interest and other business forms and are principally accounted for using the equity method of accounting. The joint ventures are characterized by a 50% or less, noncontrolling ownership or participation interest, with decision making and distribution of expected gains and losses typically being proportionate to the ownership or participation interest. For unconsolidated partnerships and joint ventures, the Company generally recognizes its proportionate share of revenue, cost and profit in its Condensed Consolidated Statement of Operations and uses the one 0 In accordance with Accounting Standards Update (“ASU”) No. 2015-02, “Consolidation” (Topic 810) (“ASC 810”), the Company assesses joint ventures at inception to determine if any meet the qualifications of a VIE. The Company considers a partnership or joint venture a VIE if it has any of the following characteristics: (a) the total equity investment is not sufficient to permit the entity to finance its activities without additional subordinated financial support, (b) characteristics of a controlling financial interest are missing (either the ability to make decisions through voting or other rights, the obligation to absorb the expected losses of the entity or the right to receive the expected residual returns of the entity), or (c) the voting rights of the equity holders are not proportional to their obligations to absorb the expected losses of the entity and/or their rights to receive the expected residual returns of the entity, and substantially all of the entity’s activities either involve or are conducted on behalf of an investor that has disproportionately few voting rights. Upon the occurrence of certain events outlined in ASC 810 The Company also performs a qualitative assessment of each VIE to determi 810 As required by ASC 810 In some cases, the Company is required to consolidate certain VIEs if it determines it is the primary beneficiary of the joint venture because it controls the activities that most significantly impact the economic performance of the entity. SG Residential, Inc. is a consolidated VIE because the total equity investment was nominal and not sufficient to permit the entity to finance its activities without additional subordinated financial support. The Company applies the provisions of ASC 810-10-45, which establishes accounting and reporting standards for ownership interests in subsidiaries held by owners other than the parent, the amount of consolidated net earnings attributable to the parent and to the noncontrolling interests, changes in a parent’s ownership interest and the valuation of retained noncontrolling equity investments when a subsidiary is deconsolidated. As required by ASC 810-10-45, the Company has separately disclosed on the face of the Condensed Consolidated Statement of Operations for all periods presented the amount of net income (loss) attributable to the Company and the amount of net income (loss) attributable to noncontrolling interests. For the three and nine months ended September 30, 2018, net loss attributable to noncontrolling interests was $52,445. For the three and nine months ended September 30, 2018, no distributions paid to or capital contributions were recorded for noncontrolling interest s Comprehensive Income The Company follows Financial Accounting Standards Board (“FASB”) ASC 220.10, "Reporting Comprehensive Income." Comprehensive income is a more inclusive financial reporting methodology that includes disclosure of certain financial information that historically has not been recognized in the calculation of net income (loss). Since the Company has no items of other comprehensive income, comprehensive income (loss) is equal to net income (loss). Recently adopted accounting pronouncements New accounting pronouncements implemented by the Company during the nine 2018 In May 2014, the FASB issued ASU No. 2014 09 606 606 606 605 605 606 In accordance with ASC 606 606 605 606 606 In recalculating costs and revenue under ASC 606 Recently issued accounting pronouncements not yet adopted New accounting pronouncements requiring implementation in future periods are discussed below. In February 2016, the FASB issued ASU No. 2016 02 842 2016 02 2016 02 twelve 2018 11 842 2018 11 2018 10 842 2018 10 2016 02 2016 02 2018 10 2018 11 2016 02 2016 02 In January 2017, the FASB issued ASU No. 2017 04 2 2017 04 In February 2018, the FASB issued ASU No. 2018 02 220 2018 02 2018 02 2018 02 In June 2018, the FASB issued ASU No. 2018 07 718 2018 07 718 2018 07 718 2018 07 718 1 2 606 2018 07 In August 2018, the FASB issued ASU No. 2018 13 820 3 2018 13 2018 13 In August 2018, the Securities and Exchange Commission issued a final rule "Disclosure Update and Simplification". The final rule is intended to update existing disclosure requirements that have become redundant, duplicative, overlapping, outdated or superseded and to facilitate the disclosure of information to investors and simplify compliance without significantly altering the total mix of information provided to investors. Included in the final rule is a requirement to present changes in stockholders' equity in the Company's 10-Q filings. The final rule is effective for all filings made on or after November 5, 2018. The Securities and Exchange Commission is not objecting to filers deferring the presentation of changes in stockholders' equity in their quarterly reports on Form 10-Q until after the effective date. The presentation of stockholders' equity will be included in the Company's 2019 first quarter filing. Accounting estimates – The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Significant areas that require the Company to make estimates include revenue recognition, stock-based compensation, warrant liabilities and allowance for doubtful accounts. Actual results could differ from those estimates. Operating cycle – The length of the Company’s contracts varies but is typically between six to twelve months. twelve one year Revenue recognition – On January 1, 2018, the Company adopted the following ASUs: ASU 2014 09 2014 09 five ASU 2016 08 2014 09 2016 08 2016 08 ASU 2016 10 2014 09 2016 10 2016 10 ASU 2016 12 2014 09 ASU 2016 20 606 ASU 2017 05 610 20 ASU 2017 13 The adoption of ASC 606 five 606 ( 1 ( 2 ( 3 ( 4 ( 5 The new revenue recognition standard requires the Company to determine, at contract inception, whether it will transfer control of a promised good or service over time or at a point in time—regardless of the length of contract or other factors. The Company now applies recognition of revenue over time, which is similar to the method the Company applied under previous guidance (i.e., percentage of completion). Due to uncertainties inherent in the estimation process, it is possible that estimates of costs to complete a performance obligation will be revised in the near-term. For those performance obligations for which revenue is recognized using a cost-to-cost input method, changes in total estimated costs, and related progress toward complete satisfaction of the performance obligation, are recognized on a cumulative catch-up basis in the period in which the revisions to the estimates are made. When the current estimate of total costs for a performance obligation indicate a loss, a provision for the entire estimated loss on the unsatisfied performance obligation is made in the period in which the loss becomes evident. For the nine months ended September 30, 2018 2017 nine months ended September 30, 2018 2017 Remaining Unsatisfied Performance Obligations The Company’s remaining unsatisfied performance obligations (“RUPO”) as of September 30, 2018 As of September 30, 2018 The Company expects to satisfy its RUPO as of September 30, 2018 Within 1 $ 19,302,904 1 2 63,794,582 Thereafter 19,742,160 Total Remaining Unsatisfied Performance Obligations $ 102,839,646 Although RUPO reflects business that is considered to be firm, cancellations, deferrals or scope adjustments may occur. RUPO is adjusted to reflect any known project cancellations, revisions to project scope and cost, foreign currency exchange fluctuations and project deferrals, as appropriate. Disaggregation of Revenues The Company’s revenues are principally derived from construction and engineering contracts related to Modules. Our contracts are with many different customers in numerous industries. The following tables provide further disaggregation of the Company’s revenues by categories: Three Months Ended September 30, Revenue by Customer Type 2018 2017 ( 1 Multi-Family $ 47,026 2 % $ — — Office 445,992 22 % 137,889 10 % Retail 955,667 46 % 92,535 7 % School 602,641 29 % 1,157,453 83 % Special Use 30,990 1 % 2,159 — Other 509 — 4,916 — Total revenue by customer type $ 2,082,825 100 % $ 1,394,952 100 % Nine Months Ended September 30, Revenue by Customer Type 2018 2017 ( 1 Multi-Family $ 257,840 4 % $ — — Office 1,039,348 18 % 1,111,171 38 % Retail 1,487,587 25 % 312,999 10 % School 2,462,880 42 % 1,525,168 51 % Special Use 667,074 11 % 9,208 — Other 17,421 — 42,733 1 % Total revenue by customer type $ 5,932,150 100 % $ 3,001,279 100 % ( 1 Prior period amounts have not been adjusted for the adoption of ASC 606 Contract Assets and Contract Liabilities Accounts receivable are recognized in the period when the Company’s right to consideration is unconditional. Accounts receivable are recognized net of an allowance for doubtful accounts. A considerable amount of judgment is required in assessing the likelihood of realization of receivables. The timing of revenue recognition may differ from the timing of invoicing to customers. Contract assets include unbilled amounts from our long-term construction services when revenue recognized under the cost-to-cost measure of progress exceeds the amounts invoiced to customers, as the amounts cannot be billed under the terms of our contracts. Such amounts are recoverable from customers based upon various measures of performance, including achievement of certain milestones, completion of specified units or completion of a contract. Contract assets are generally classified as current within the condensed consolidated balance sheets and labeled as “costs and estimated earnings in excess of billings on uncompleted contracts”. Contract liabilities from construction and engineering contracts occur when amounts invoiced to our customers exceed revenues recognized under the cost-to-cost measure of progress. Contract liabilities additionally include advanced payments from our customers on certain contracts. Contract liabilities decrease as the Company recognizes revenue from the satisfaction of the related performance obligation. Contract liabilities are generally classified as current within the condensed consolidated balance sheet and labeled as “billings in excess of costs and estimated earnings on uncompleted contracts”. Although the Company believes it has established adequate procedures for estimating costs to complete on open contracts, it is at least reasonably possible that additional significant costs could occur on contracts prior to completion. The Company periodically evaluates and revises its estimates and makes adjustments when they are considered necessary. Impact of the Adoption of ASC 606 Prior to implementing ASC 606 606 The actual cost as a percent of total expected cost at completion was used to estimate the percentage completed on fixed price jobs. Furthermore, the process for allocating transaction price to performance obligations is also substantially similar to prior years. As a result, no material modifications were required to be made to our method of revenue recognition. Cash and cash equivalents – The Company considers cash and cash equivalents to include all short-term, highly liquid investments that are readily convertible to known amounts of cash and have original maturities of three Short-term investment – The Company classifies any investments with a maturity greater than three one Accounts receivable – Accounts receivable are receivables generated from sales to customers and progress billings on performance type contracts. Amounts included in accounts receivable are deemed to be collectible within the Company’s operating cycle. Management provides an allowance for doubtful accounts based on the Company’s historical losses, specific customer circumstances, and general economic conditions. Periodically, management reviews accounts receivable and adjusts the allowance based on current circumstances and charges off uncollectible receivables when all attempts to collect have been exhausted and the prospects for recovery are remote. Goodwill – T he Company performs its impairment test of goodwill at the reporting unit level each fiscal year, or more frequently if events or circumstances change that would more likely than not reduce the fair value of its reporting unit below its carrying values. The Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount, including goodwill. If management concludes that it is more likely than not that the fair value of the reporting unit is less than its carrying amount, management conducts a two Intangible assets – In tangible assets consist of $ 2,766,000 20 1,113,000 2.5 28,820 5,000 years. The Company evaluated intangible assets for impairment during the year ended December 31, 2017 September 30, 2018 2017 three months ended September 30, 2018 2017 147,316 respectively. expense for the nine months ended September 30, 2018 2017 five For the year ending December 31,: 2018 $ 147,565 2019 145,064 2020 145,064 2021 145,064 2022 140,741 Thereafter 1,867,717 Total estimated amortization expense $ 2,591,215 Fair value measurements – Financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, are carried at cost, which the Company believes approximates fair value due to the short-term nature of these instruments. The Company measures the fair value of financial assets and liabilities based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. The Company uses three Level 1 Quoted prices in active markets for identical assets or liabilities. Level 2 Quoted prices for similar assets and liabilities in active markets or inputs that are observable. Level 3 Inputs that are unobservable (for example, cash flow modeling inputs based on assumptions). Financial assets and liabilities measured at fair value on a recurring basis are summarized below: Short-term investment: The Company had $30,033 in a short-term investment as of December 31, 2017 2 nine months ended September 30, 2018 September 30, 2018 Conversion option liabilities: The conversion option liabilities are measured at fair value using the Black-Scholes model and are classified within Level 3 3 3 September 30, 2018 The following table sets forth a summary of the changes in the fair value of the Company’s Level 3 nine months ended September 30, 2017 that are measured at fair value on a recurring basis: Nine Months Ended September 30, 2017 Beginning balance $ 384,461 Aggregate fair value of conversion option liabilities issued — Change in fair value related to conversion of convertible debentures (288,134 ) Change in fair value of conversion option liabilities and warrants (96,327 ) Ending balance $ — The Company presented the conversion option liabilities at fair value on its condensed consolidated balance sheets, with the corresponding changes in fair value recorded in the Company’s condensed consolidated statements of operations for the applicable reporting periods. The calculation of the Black-Scholes model involved the use of the fair value of the Company’s common stock, estimated term, volatility, risk-free interest rates and dividend yield (if applicable). The Company developed the assumptions that were used as follows: the fair value of the Company’s common stock was obtained from the terms of the recapitalization of the Company, including the Exit Facility (defined below), which occurred concurrent with the Company’s emergence from bankruptcy protection, as well as publicly traded market prices of the Company’s common stock. The term represented the remaining contractual term of the derivative; the volatility rate was developed based on analysis of the Company’s historical stock price volatility and the historical volatility rates of several other similarly situated companies (using a number of observations that was at least equal to or exceeded the number of observations in the life of the derivative financial instrument at issue); the risk free interest rates were obtained from publicly available United States Treasury yield curve rates; and the dividend yield was zero Share-based payments – The Company measures the cost of services received in exchange for an award of equity instruments based on the fair value of the award. For employees and directors, the fair value of the award is measured on the grant date. The fair value amount is then recognized over the period services are required to be provided in exchange for the award, usually the vesting period. The Company recognizes stock-based compensation expense on a graded-vesting basis over the requisite service period for each separately vesting tranche of each award. Stock-based compensation expense to employees is reported within payroll and related expenses in the consolidated statements of operations. Stock-based compensation expense to non-employees is reported within marketing and business development expense in the consolidated statements of operations. For the nine September 30, 2018 Income taxes – The Company accounts for income taxes utilizing the asset and liability approach. Under this approach, deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. The provision for income taxes generally represents income taxes paid or payable for the current year plus the change in deferred taxes during the year. Deferred taxes result from the differences between the financial and tax bases of the Company’s assets and liabilities and are adjusted for changes in tax rates and tax laws when changes are enacted. The calculation of tax liabilities involves dealing with uncertainties in the application of complex tax regulations. The Company recognizes liabilities for anticipated tax audit issues based on the Company’s estimate of whether, and the extent to which, additional taxes will be due. If payment of these amounts ultimately proves to be unnecessary, the reversal of the liabilities would result in tax benefits being recognized in the period when the liabilities are no longer determined to be necessary. If the estimate of tax liabilities proves to be less than the ultimate assessment, a further charge to expense would result. The Company recognizes deferred tax liabilities and assets for the expected future tax consequences of events that have been included in the consolidated financial statements or tax returns. Deferred tax liabilities and assets are determined based on the difference between the financial statement basis and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The Company estimates the degree to which tax assets and credit carryforwards will result in a benefit based on expected profitability by tax jurisdiction. A valuation allowance for such tax assets and loss carryforwards is provided when it is determined to be more likely than not that the benefit of such deferred tax asset will not be realized in future periods. If it becomes more likely than not that a tax asset will be used, the related valuation allowance on such assets would be reduced. Impact of the Tax Cuts and Jobs Act The TCJA was enacted in the United States on December 2 2 2017 Among other things, the TCJA lowered the corporate tax rate from 35.0% to 21.0% and imposed a one-time transition tax on unremitted earnings as of the end of 2017. 118 “Income Tax Accounting Implications of the Tax Cuts and Jobs Act” 118 118 The Company recognized the income tax effects of the TCJA in its consolidated financial statements for the year ended December 31, 2017 three and nine September 30, 2018 Concentrations of credit risk – Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash and cash equivalents. The Company places its cash with high credit quality institutions. At times, such amounts may be in excess of the FDIC insurance limits. The Company has not experienced any losses in its account and believes that it is not exposed to any significant credit risk on the account. With respect to receivables, concentrations of credit risk are limited to a few customers in the construction industry. The Company performs ongoing credit evaluations of its customers’ financial condition and, generally, requires no collateral from its customers other than normal lien rights. At September 30, 2018 December 31, 2017 Revenue relating to four customers represented approximately 11%, 14%, 29% three months ended September 30, 2018 three months ended September 30, 2017 nine months ended September 30, 2018 nine months ended September 30, 2017 Cost of revenue relating to four three months ended September 30, 2018 2017 nine months ended September 30, 2018 2017

Accounts Receivable

Accounts Receivable	9 Months Ended
	Sep. 30, 2018
Accounts Receivable [Abstract]
Accounts Receivable	3. Accounts Receivable At September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 Billed: Block sales $ — $ 14,038 Construction services 2,228,939 2,652,496 Retainage receivable 543,417 373,576 Other receivable 753 — Total gross receivables 2,773,109 3,040,110 Less: allowance for doubtful accounts (14,904 ) (34,235 ) Total net receivables $ 2,758,205 $ 3,005,875

Costs and Estimated Earnings on

Costs and Estimated Earnings on Uncompleted Contracts	9 Months Ended
	Sep. 30, 2018
Costs and Estimated Earnings on Uncompleted Contracts [Abstract]
Costs and Estimated Earnings on Uncompleted Contracts	4. Costs and Estimated Earnings on Uncompleted Contracts Costs and estimated earnings on uncompleted contracts consisted of the following at September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 Costs incurred on uncompleted contracts $ 9,183,162 $ 3,681,965 Estimated earnings to date on uncompleted contracts 719,589 328,273 Gross contract assets 9,902,751 4,010,238 Less: billings to date (11,876,802 ) (5,622,111 ) Net contract assets (liabilities) $ (1,974,051 ) $ (1,611,873 ) The above amounts are included in the accompanying condensed consolidated balance sheets under the following captions at September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 Costs and estimated earnings in excess of billings on uncompleted contracts $ 107,689 $ 61,175 Billings in excess of costs and estimated earnings on uncompleted contracts (2,081,740 ) (1,673,048 ) Net contract assets (liabilities) $ (1,974,051 ) $ (1,611,873 )

Convertible Debentures

Convertible Debentures	9 Months Ended
	Sep. 30, 2018
Convertible Debentures [Abstract]
Convertible Debentures	5. Convertible Debentures On June 30, 2016, and pursuant to the terms of the Company’s plan of reorganization, the Company entered into a Securities Purchase Agreement, dated June 30, 2016, with Hillair Capital Investments L.P. (“HCI”), pursuant to which the Company sold, for a subscription price of $2,000,000, a 12% Original Issue Discount Senior Secured Convertible Debenture to HCI in the principal amount of $2,500,000, with a maturity date of June 30, 2018 (the “Exit Facility”). The Exit Facility was convertible at HCI’s option at any time, in whole or in part, into shares of the Company’s common stock at a ratio of 1 share for every $3.75 of debt. On November 17, 2016, the Company entered into a Securities Purchase Agreement with HCI, pursuant to which the Company sold, for a subscription price of $750,000, a 12% Original Issue Discount Senior Secured Convertible Debenture to HCI in the amount of $937,500, with a maturity date of June 30, 2018 (the “November 2016 Debenture” and, together with the Exit Facility, the “ 2016 The November 2016 Debenture was convertible at HCI’s option at any time, in whole or in part, into shares of the Company’s common stock at a ratio of 1 share for every $3.75 of debt. In connection with the Public Offering, HCI converted approximately $1,937,500 of the 2016 2016 For the three months ended September 30, 2018 2017 nine months ended September 30, 2018 2017

Net Income (Loss) Per Share

Net Income (Loss) Per Share	9 Months Ended
	Sep. 30, 2018
Net Income (Loss) Per Share [Abstract]
Net Income (Loss) Per Share	6. Net Income (Loss) Per Share Basic net income (loss) per share is computed by dividing the net income (loss) for the period by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is computed by dividing the net income (loss) for the period by the weighted average number of common and potentially dilutive common shares outstanding during the period. Potentially dilutive common shares consist of the common shares issuable upon the exercise of stock options and warrants. Potentially dilutive common shares are excluded from the calculation if their effect is antidilutive. At September 30, 2018 September 30, 2018 For the Three Months Ended September 30, For the Nine Months Ended September 30, 2018 2017 2018 2017 (Unaudited) (Unaudited) (Unaudited) (Unaudited) N et loss attributable to common stockholders of SG Blocks, Inc. $ (1,026,037 ) $ (1,043,301 ) $ (3,013,042 ) $ (3,439,303 ) Net loss per share - basic and diluted: Basic and diluted $ (0.24 ) $ (0.25 ) $ (0.71 ) $ (2.09 ) Weighted average shares outstanding: Basic and diluted 4,260,041 4,177,890 4,260,041 1,647,916

Stock Options and Grants

Stock Options and Grants	9 Months Ended
	Sep. 30, 2018
Stock Options and Grants [Abstract]
Stock Options and Grants	7. Stock Options and Grants Stock Options – A summary of stock option activity as of September 30, 2018 nine The table includes options granted to employees and directors of the Company and does not include 50,000 2017 Shares Weighted Average Fair Value Per Share Weighted Average Exercise Price Per Share Weighted Average Remaining Terms (in years) Aggregate Intrinsic Value Outstanding – December 31, 2017 888,392 $ 1.23 $ 3.86 9.15 $ 1,881,869 Granted 250,000 1.28 4.61 — — Exercised — — — — — Cancelled — — — — — Outstanding – September 30, 2018 1,138,392 $ 1.24 $ 4.03 8.65 $ 570,521 Exercisable – December 31, 2017 738,608 $ 1.22 $ 4.04 9.19 $ 1,435,515 Exercisable – September 30, 2018 890,602 $ 1.23 $ 4.01 8.53 $ 489,401 For the three months ended September 30, 2018 2017 nine months ended September 30, 2018 2017 As of September 30, 2018 September 30, 2018 4.00 Restricted Stock Units – 27,955 5.21 2018 six three and nine months ended September 30, 2018 31,777

Warrants

Warrants	9 Months Ended
	Sep. 30, 2018
Warrants [Abstract]
Warrants	8. Warrants In conjunction with the Public Offering, the Company issued to certain affiliates of the underwriters, as compensation, warrants to purchase an aggregate of 86,250 shares of common stock at an exercise price of $6.25 per share. The warrants are exercisable at the option of the holder on or after June 21, 2018 and expire June 21, 2023. The fair value of warrants was calculated utilizing a Black-Scholes model and amounted to $63,796. The fair market value of the warrants as of the date of issuance has been included in issuance costs in additional paid-in capital.

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2018
Stockholders' Equity [Abstract]
Stockholders' Equity	9. Stockholders’ Equity Public Offering – In June 2017, the Company issued 1,500,000 shares of its common stock at $5.00 per share through the Public Offering. The Company incurred $1,388,615 in issuance costs from the Public Offering and issued 75,000 warrants valued at $55,475 to the underwriters. In July 2017, as permitted by the underwriting agreement entered into in connection with the Public Offering, the underwriters exercised their option to purchase an additional 225,000 shares of common stock at $5.00 per share. The Company incurred $176,771 in issuance costs from this issuance. In connection with this exercise, certain affiliates of the underwriters were granted additional warrants to purchase 11,250 shares of common stock in the aggregate valued at $8,321. In connection with and prior to the Public Offering, the Company issued 1,801,670 shares of its common stock upon conversion of all outstanding preferred stock. Also in connection with the Public Offering, the Company issued a total of 516,667 shares of its common stock upon conversion of an aggregate amount of $1,937,500 of the 2016 December 31, 2017

Construction Backlog

Construction Backlog	9 Months Ended
	Sep. 30, 2018
Construction Backlog [Abstract]
Construction Backlog	10. Construction Backlog The following represents the backlog of signed construction and engineering contracts in existence at September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 Balance – beginning of period $ 76,659,029 $ 541,291 New contracts and change orders during the period 32,112,767 81,179,323 Subtotal 108,771,796 81,720,614 Less: contract revenue earned during the period (5,932,150 ) (5,061,585 ) Balance – end of period $ 102,839,646 $ 76,659,029 Backlog at September 30, 2018 2017 2018

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	11 Commitments and Contingencies Legal Proceedings On or about August 10, 2018, Pizzarotti, LLC filed a complaint against the Company and Mahesh Shetty, the Company's President, and others seeking unspecified damages for an alleged breach of contract by the Company and another entity named Phipps & Co ("Phipps"). The lawsuit was filed as Pizzarotti, LLC. v. Phipps & Co., et al., Index No. 653996 2018 The claims against the company arise from an Assignment Agreement dated as of May 30, 2018 as between Pizzarotti, Phipps and the Company pursuant to which the Company intended to provide a letter of credit in exchange for an assignment of the proceeds from certain subcontracted work to be provided by Phipps to Pizzarotti. The Assignment Agreement was ultimately terminated and the Company returned all payments to Phipps. Notwithstanding the above, Pizzarotti has sued seeking damages for non-performance of the sub-contracted work and the return of a $500,000 payment to Phipps. The Company believes that the Assignment Agreement was properly terminated and believes that the claims brought against the Company and Mr. Shetty have no merit. The Company intends to vigorously defend the litigation. Litigation is subject to many uncertainties, and the outcome of this action is not predicted with assurance. The Company is currently unable to predict the possible loss or range of loss, if any, associated with the resolution of this litigation, and, accordingly, the Company has made no provision related to this matter in the condensed consolidated financial statements

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2018
Summary of Significant Accounting Policies [Abstract]
Interim financial information	Interim financial information – The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8 nine months ended September 30, 2018 December 31, 2018 The condensed consolidated financial statements and notes should be read in conjunction with the financial statements and notes for the year ended December 31, 2017 December 31, 2017
Basis of consolidation	Basis of consolidation – The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, SG Building Blocks, Inc. and those entities in which it has a controlling interest. The Company consolidates entities that it controls due to ownership of a majority voting interest, and it consolidates variable interest entities “VIEs” when it has variable interests and is the primary beneficiary. The Company's share of earnings or losses of nonconsolidated affiliates is included in the Company's consolidated operating results using the equity method of accounting. All intercompany balances and transactions are eliminated. Certain prior period amounts have been reclassified to conform to the current period’s presentation. The Company conducts some of its operations through joint ventures, which operate through partnerships, corporations, undivided interest and other business forms and are principally accounted for using the equity method of accounting. The joint ventures are characterized by a 50% or less, noncontrolling ownership or participation interest, with decision making and distribution of expected gains and losses typically being proportionate to the ownership or participation interest. For unconsolidated partnerships and joint ventures, the Company generally recognizes its proportionate share of revenue, cost and profit in its Condensed Consolidated Statement of Operations and uses the one 0 In accordance with Accounting Standards Update (“ASU”) No. 2015-02, “Consolidation” (Topic 810) (“ASC 810”), the Company assesses joint ventures at inception to determine if any meet the qualifications of a VIE. The Company considers a partnership or joint venture a VIE if it has any of the following characteristics: (a) the total equity investment is not sufficient to permit the entity to finance its activities without additional subordinated financial support, (b) characteristics of a controlling financial interest are missing (either the ability to make decisions through voting or other rights, the obligation to absorb the expected losses of the entity or the right to receive the expected residual returns of the entity), or (c) the voting rights of the equity holders are not proportional to their obligations to absorb the expected losses of the entity and/or their rights to receive the expected residual returns of the entity, and substantially all of the entity’s activities either involve or are conducted on behalf of an investor that has disproportionately few voting rights. Upon the occurrence of certain events outlined in ASC 810 The Company also performs a qualitative assessment of each VIE to determi 810 As required by ASC 810 In some cases, the Company is required to consolidate certain VIEs if it determines it is the primary beneficiary of the joint venture because it controls the activities that most significantly impact the economic performance of the entity. SG Residential, Inc. is a consolidated VIE because the total equity investment was nominal and not sufficient to permit the entity to finance its activities without additional subordinated financial support. The Company applies the provisions of ASC 810-10-45, which establishes accounting and reporting standards for ownership interests in subsidiaries held by owners other than the parent, the amount of consolidated net earnings attributable to the parent and to the noncontrolling interests, changes in a parent’s ownership interest and the valuation of retained noncontrolling equity investments when a subsidiary is deconsolidated. As required by ASC 810-10-45, the Company has separately disclosed on the face of the Condensed Consolidated Statement of Operations for all periods presented the amount of net income (loss) attributable to the Company and the amount of net income (loss) attributable to noncontrolling interests. For the three and nine months ended September 30, 2018, net loss attributable to noncontrolling interests was $52,445. For the three and nine months ended September 30, 2018, no distributions paid to or capital contributions were recorded for noncontrolling interest s
Comprehensive Income	Comprehensive Income The Company follows Financial Accounting Standards Board (“FASB”) ASC 220.10, "Reporting Comprehensive Income." Comprehensive income is a more inclusive financial reporting methodology that includes disclosure of certain financial information that historically has not been recognized in the calculation of net income (loss). Since the Company has no items of other comprehensive income, comprehensive income (loss) is equal to net income (loss).
Recently adopted accounting pronouncements	Recently adopted accounting pronouncements New accounting pronouncements implemented by the Company during the nine 2018 In May 2014, the FASB issued ASU No. 2014 09 606 606 606 605 605 606 In accordance with ASC 606 606 605 606 606 In recalculating costs and revenue under ASC 606 Recently issued accounting pronouncements not yet adopted New accounting pronouncements requiring implementation in future periods are discussed below. In February 2016, the FASB issued ASU No. 2016 02 842 2016 02 2016 02 twelve 2018 11 842 2018 11 2018 10 842 2018 10 2016 02 2016 02 2018 10 2018 11 2016 02 2016 02 In January 2017, the FASB issued ASU No. 2017 04 2 2017 04 In February 2018, the FASB issued ASU No. 2018 02 220 2018 02 2018 02 2018 02 In June 2018, the FASB issued ASU No. 2018 07 718 2018 07 718 2018 07 718 2018 07 718 1 2 606 2018 07 In August 2018, the FASB issued ASU No. 2018 13 820 3 2018 13 2018 13 In August 2018, the Securities and Exchange Commission issued a final rule "Disclosure Update and Simplification". The final rule is intended to update existing disclosure requirements that have become redundant, duplicative, overlapping, outdated or superseded and to facilitate the disclosure of information to investors and simplify compliance without significantly altering the total mix of information provided to investors. Included in the final rule is a requirement to present changes in stockholders' equity in the Company's 10-Q filings. The final rule is effective for all filings made on or after November 5, 2018. The Securities and Exchange Commission is not objecting to filers deferring the presentation of changes in stockholders' equity in their quarterly reports on Form 10-Q until after the effective date. The presentation of stockholders' equity will be included in the Company's 2019 first quarter filing.
Accounting estimates	Accounting estimates – The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Significant areas that require the Company to make estimates include revenue recognition, stock-based compensation, warrant liabilities and allowance for doubtful accounts. Actual results could differ from those estimates.
Operating cycle	Operating cycle – The length of the Company’s contracts varies but is typically between six to twelve months. twelve one year
Revenue recognition	Revenue recognition – On January 1, 2018, the Company adopted the following ASUs: ASU 2014 09 2014 09 five ASU 2016 08 2014 09 2016 08 2016 08 ASU 2016 10 2014 09 2016 10 2016 10 ASU 2016 12 2014 09 ASU 2016 20 606 ASU 2017 05 610 20 ASU 2017 13 The adoption of ASC 606 five 606 ( 1 ( 2 ( 3 ( 4 ( 5 The new revenue recognition standard requires the Company to determine, at contract inception, whether it will transfer control of a promised good or service over time or at a point in time—regardless of the length of contract or other factors. The Company now applies recognition of revenue over time, which is similar to the method the Company applied under previous guidance (i.e., percentage of completion). Due to uncertainties inherent in the estimation process, it is possible that estimates of costs to complete a performance obligation will be revised in the near-term. For those performance obligations for which revenue is recognized using a cost-to-cost input method, changes in total estimated costs, and related progress toward complete satisfaction of the performance obligation, are recognized on a cumulative catch-up basis in the period in which the revisions to the estimates are made. When the current estimate of total costs for a performance obligation indicate a loss, a provision for the entire estimated loss on the unsatisfied performance obligation is made in the period in which the loss becomes evident. For the nine months ended September 30, 2018 2017 nine months ended September 30, 2018 2017 Remaining Unsatisfied Performance Obligations The Company’s remaining unsatisfied performance obligations (“RUPO”) as of September 30, 2018 As of September 30, 2018 The Company expects to satisfy its RUPO as of September 30, 2018 Within 1 $ 19,302,904 1 2 63,794,582 Thereafter 19,742,160 Total Remaining Unsatisfied Performance Obligations $ 102,839,646 Although RUPO reflects business that is considered to be firm, cancellations, deferrals or scope adjustments may occur. RUPO is adjusted to reflect any known project cancellations, revisions to project scope and cost, foreign currency exchange fluctuations and project deferrals, as appropriate. Disaggregation of Revenues The Company’s revenues are principally derived from construction and engineering contracts related to Modules. Our contracts are with many different customers in numerous industries. The following tables provide further disaggregation of the Company’s revenues by categories: Three Months Ended September 30, Revenue by Customer Type 2018 2017 ( 1 Multi-Family $ 47,026 2 % $ — — Office 445,992 22 % 137,889 10 % Retail 955,667 46 % 92,535 7 % School 602,641 29 % 1,157,453 83 % Special Use 30,990 1 % 2,159 — Other 509 — 4,916 — Total revenue by customer type $ 2,082,825 100 % $ 1,394,952 100 % Nine Months Ended September 30, Revenue by Customer Type 2018 2017 ( 1 Multi-Family $ 257,840 4 % $ — — Office 1,039,348 18 % 1,111,171 38 % Retail 1,487,587 25 % 312,999 10 % School 2,462,880 42 % 1,525,168 51 % Special Use 667,074 11 % 9,208 — Other 17,421 — 42,733 1 % Total revenue by customer type $ 5,932,150 100 % $ 3,001,279 100 % ( 1 Prior period amounts have not been adjusted for the adoption of ASC 606 Contract Assets and Contract Liabilities Accounts receivable are recognized in the period when the Company’s right to consideration is unconditional. Accounts receivable are recognized net of an allowance for doubtful accounts. A considerable amount of judgment is required in assessing the likelihood of realization of receivables. The timing of revenue recognition may differ from the timing of invoicing to customers. Contract assets include unbilled amounts from our long-term construction services when revenue recognized under the cost-to-cost measure of progress exceeds the amounts invoiced to customers, as the amounts cannot be billed under the terms of our contracts. Such amounts are recoverable from customers based upon various measures of performance, including achievement of certain milestones, completion of specified units or completion of a contract. Contract assets are generally classified as current within the condensed consolidated balance sheets and labeled as “costs and estimated earnings in excess of billings on uncompleted contracts”. Contract liabilities from construction and engineering contracts occur when amounts invoiced to our customers exceed revenues recognized under the cost-to-cost measure of progress. Contract liabilities additionally include advanced payments from our customers on certain contracts. Contract liabilities decrease as the Company recognizes revenue from the satisfaction of the related performance obligation. Contract liabilities are generally classified as current within the condensed consolidated balance sheet and labeled as “billings in excess of costs and estimated earnings on uncompleted contracts”. Although the Company believes it has established adequate procedures for estimating costs to complete on open contracts, it is at least reasonably possible that additional significant costs could occur on contracts prior to completion. The Company periodically evaluates and revises its estimates and makes adjustments when they are considered necessary. Impact of the Adoption of ASC 606 Prior to implementing ASC 606 606 The actual cost as a percent of total expected cost at completion was used to estimate the percentage completed on fixed price jobs. Furthermore, the process for allocating transaction price to performance obligations is also substantially similar to prior years. As a result, no material modifications were required to be made to our method of revenue recognition.
Cash and cash equivalents	Cash and cash equivalents – The Company considers cash and cash equivalents to include all short-term, highly liquid investments that are readily convertible to known amounts of cash and have original maturities of three
Short-term investment	Short-term investment – The Company classifies any investments with a maturity greater than three one
Accounts receivable	Accounts receivable – Accounts receivable are receivables generated from sales to customers and progress billings on performance type contracts. Amounts included in accounts receivable are deemed to be collectible within the Company’s operating cycle. Management provides an allowance for doubtful accounts based on the Company’s historical losses, specific customer circumstances, and general economic conditions. Periodically, management reviews accounts receivable and adjusts the allowance based on current circumstances and charges off uncollectible receivables when all attempts to collect have been exhausted and the prospects for recovery are remote.
Goodwill	Goodwill – T he Company performs its impairment test of goodwill at the reporting unit level each fiscal year, or more frequently if events or circumstances change that would more likely than not reduce the fair value of its reporting unit below its carrying values. The Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount, including goodwill. If management concludes that it is more likely than not that the fair value of the reporting unit is less than its carrying amount, management conducts a two
Intangible assets	Intangible assets – In tangible assets consist of $ 2,766,000 20 1,113,000 2.5 28,820 5,000 years. The Company evaluated intangible assets for impairment during the year ended December 31, 2017 September 30, 2018 2017 three months ended September 30, 2018 2017 147,316 respectively. expense for the nine months ended September 30, 2018 2017 five For the year ending December 31,: 2018 $ 147,565 2019 145,064 2020 145,064 2021 145,064 2022 140,741 Thereafter 1,867,717 Total estimated amortization expense $ 2,591,215
Fair value measurements	Fair value measurements – Financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, are carried at cost, which the Company believes approximates fair value due to the short-term nature of these instruments. The Company measures the fair value of financial assets and liabilities based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. The Company uses three Level 1 Quoted prices in active markets for identical assets or liabilities. Level 2 Quoted prices for similar assets and liabilities in active markets or inputs that are observable. Level 3 Inputs that are unobservable (for example, cash flow modeling inputs based on assumptions). Financial assets and liabilities measured at fair value on a recurring basis are summarized below: Short-term investment: The Company had $30,033 in a short-term investment as of December 31, 2017 2 nine months ended September 30, 2018 September 30, 2018 Conversion option liabilities: The conversion option liabilities are measured at fair value using the Black-Scholes model and are classified within Level 3 3 3 September 30, 2018 The following table sets forth a summary of the changes in the fair value of the Company’s Level 3 nine months ended September 30, 2017 that are measured at fair value on a recurring basis: Nine Months Ended September 30, 2017 Beginning balance $ 384,461 Aggregate fair value of conversion option liabilities issued — Change in fair value related to conversion of convertible debentures (288,134 ) Change in fair value of conversion option liabilities and warrants (96,327 ) Ending balance $ — The Company presented the conversion option liabilities at fair value on its condensed consolidated balance sheets, with the corresponding changes in fair value recorded in the Company’s condensed consolidated statements of operations for the applicable reporting periods. The calculation of the Black-Scholes model involved the use of the fair value of the Company’s common stock, estimated term, volatility, risk-free interest rates and dividend yield (if applicable). The Company developed the assumptions that were used as follows: the fair value of the Company’s common stock was obtained from the terms of the recapitalization of the Company, including the Exit Facility (defined below), which occurred concurrent with the Company’s emergence from bankruptcy protection, as well as publicly traded market prices of the Company’s common stock. The term represented the remaining contractual term of the derivative; the volatility rate was developed based on analysis of the Company’s historical stock price volatility and the historical volatility rates of several other similarly situated companies (using a number of observations that was at least equal to or exceeded the number of observations in the life of the derivative financial instrument at issue); the risk free interest rates were obtained from publicly available United States Treasury yield curve rates; and the dividend yield was zero
Share-based payments	Share-based payments – The Company measures the cost of services received in exchange for an award of equity instruments based on the fair value of the award. For employees and directors, the fair value of the award is measured on the grant date. The fair value amount is then recognized over the period services are required to be provided in exchange for the award, usually the vesting period. The Company recognizes stock-based compensation expense on a graded-vesting basis over the requisite service period for each separately vesting tranche of each award. Stock-based compensation expense to employees is reported within payroll and related expenses in the consolidated statements of operations. Stock-based compensation expense to non-employees is reported within marketing and business development expense in the consolidated statements of operations. For the nine September 30, 2018
Income taxes	Income taxes – The Company accounts for income taxes utilizing the asset and liability approach. Under this approach, deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. The provision for income taxes generally represents income taxes paid or payable for the current year plus the change in deferred taxes during the year. Deferred taxes result from the differences between the financial and tax bases of the Company’s assets and liabilities and are adjusted for changes in tax rates and tax laws when changes are enacted. The calculation of tax liabilities involves dealing with uncertainties in the application of complex tax regulations. The Company recognizes liabilities for anticipated tax audit issues based on the Company’s estimate of whether, and the extent to which, additional taxes will be due. If payment of these amounts ultimately proves to be unnecessary, the reversal of the liabilities would result in tax benefits being recognized in the period when the liabilities are no longer determined to be necessary. If the estimate of tax liabilities proves to be less than the ultimate assessment, a further charge to expense would result. The Company recognizes deferred tax liabilities and assets for the expected future tax consequences of events that have been included in the consolidated financial statements or tax returns. Deferred tax liabilities and assets are determined based on the difference between the financial statement basis and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The Company estimates the degree to which tax assets and credit carryforwards will result in a benefit based on expected profitability by tax jurisdiction. A valuation allowance for such tax assets and loss carryforwards is provided when it is determined to be more likely than not that the benefit of such deferred tax asset will not be realized in future periods. If it becomes more likely than not that a tax asset will be used, the related valuation allowance on such assets would be reduced. Impact of the Tax Cuts and Jobs Act The TCJA was enacted in the United States on December 2 2 2017 Among other things, the TCJA lowered the corporate tax rate from 35.0% to 21.0% and imposed a one-time transition tax on unremitted earnings as of the end of 2017. 118 “Income Tax Accounting Implications of the Tax Cuts and Jobs Act” 118 118 The Company recognized the income tax effects of the TCJA in its consolidated financial statements for the year ended December 31, 2017 three and nine September 30, 2018
Concentrations of credit risk	Concentrations of credit risk – Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash and cash equivalents. The Company places its cash with high credit quality institutions. At times, such amounts may be in excess of the FDIC insurance limits. The Company has not experienced any losses in its account and believes that it is not exposed to any significant credit risk on the account. With respect to receivables, concentrations of credit risk are limited to a few customers in the construction industry. The Company performs ongoing credit evaluations of its customers’ financial condition and, generally, requires no collateral from its customers other than normal lien rights. At September 30, 2018 December 31, 2017 Revenue relating to four customers represented approximately 11%, 14%, 29% three months ended September 30, 2018 three months ended September 30, 2017 nine months ended September 30, 2018 nine months ended September 30, 2017 Cost of revenue relating to four three months ended September 30, 2018 2017 nine months ended September 30, 2018 2017

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2018
Summary of Significant Accounting Policies [Abstract]
Schedule of expects to satisfy remaining unsatisfied performance obligation	Within 1 $ 19,302,904 1 2 63,794,582 Thereafter 19,742,160 Total Remaining Unsatisfied Performance Obligations $ 102,839,646
Schedule of disaggregation of revenues by categories	Three Months Ended September 30, Revenue by Customer Type 2018 2017 ( 1 Multi-Family $ 47,026 2 % $ — — Office 445,992 22 % 137,889 10 % Retail 955,667 46 % 92,535 7 % School 602,641 29 % 1,157,453 83 % Special Use 30,990 1 % 2,159 — Other 509 — 4,916 — Total revenue by customer type $ 2,082,825 100 % $ 1,394,952 100 % Nine Months Ended September 30, Revenue by Customer Type 2018 2017 ( 1 Multi-Family $ 257,840 4 % $ — — Office 1,039,348 18 % 1,111,171 38 % Retail 1,487,587 25 % 312,999 10 % School 2,462,880 42 % 1,525,168 51 % Special Use 667,074 11 % 9,208 — Other 17,421 — 42,733 1 % Total revenue by customer type $ 5,932,150 100 % $ 3,001,279 100 % ( 1 Prior period amounts have not been adjusted for the adoption of ASC 606
Summary of estimated amortization expense of intangible assets	For the year ending December 31,: 2018 $ 147,565 2019 145,064 2020 145,064 2021 145,064 2022 140,741 Thereafter 1,867,717 Total estimated amortization expense $ 2,591,215
Summary of changes in fair value of company's level 3 financial liabilities measured on recurring basis	Nine Months Ended September 30, 2017 Beginning balance $ 384,461 Aggregate fair value of conversion option liabilities issued — Change in fair value related to conversion of convertible debentures (288,134 ) Change in fair value of conversion option liabilities and warrants (96,327 ) Ending balance $ —

Accounts Receivable (Tables)

Accounts Receivable (Tables)	9 Months Ended
	Sep. 30, 2018
Accounts Receivable [Abstract]
Summary of accounts receivable	September 30, 2018 December 31, 2017 Billed: Block sales $ — $ 14,038 Construction services 2,228,939 2,652,496 Retainage receivable 543,417 373,576 Other receivable 753 — Total gross receivables 2,773,109 3,040,110 Less: allowance for doubtful accounts (14,904 ) (34,235 ) Total net receivables $ 2,758,205 $ 3,005,875

Costs and Estimated Earnings _2

Costs and Estimated Earnings on Uncompleted Contracts (Tables)	9 Months Ended
	Sep. 30, 2018
Costs and Estimated Earnings on Uncompleted Contracts [Abstract]
Summary of costs and estimated earnings on uncompleted contracts	September 30, 2018 December 31, 2017 Costs incurred on uncompleted contracts $ 9,183,162 $ 3,681,965 Estimated earnings to date on uncompleted contracts 719,589 328,273 Gross contract assets 9,902,751 4,010,238 Less: billings to date (11,876,802 ) (5,622,111 ) Net contract assets (liabilities) $ (1,974,051 ) $ (1,611,873 )
Summary of costs included in condensed consolidated balance sheets	September 30, 2018 December 31, 2017 Costs and estimated earnings in excess of billings on uncompleted contracts $ 107,689 $ 61,175 Billings in excess of costs and estimated earnings on uncompleted contracts (2,081,740 ) (1,673,048 ) Net contract assets (liabilities) $ (1,974,051 ) $ (1,611,873 )

Net Income (Loss) Per Share (Ta

Net Income (Loss) Per Share (Tables)	9 Months Ended
	Sep. 30, 2018
Net Income (Loss) Per Share [Abstract]
Schedule of shares outstanding to calculate both the basic and diluted loss per share	For the Three Months Ended September 30, For the Nine Months Ended September 30, 2018 2017 2018 2017 (Unaudited) (Unaudited) (Unaudited) (Unaudited) N et loss attributable to common stockholders of SG Blocks, Inc. $ (1,026,037 ) $ (1,043,301 ) $ (3,013,042 ) $ (3,439,303 ) Net loss per share - basic and diluted: Basic and diluted $ (0.24 ) $ (0.25 ) $ (0.71 ) $ (2.09 ) Weighted average shares outstanding: Basic and diluted 4,260,041 4,177,890 4,260,041 1,647,916

Stock Options and Grants (Table

Stock Options and Grants (Tables)	9 Months Ended
	Sep. 30, 2018
Stock Options and Grants [Abstract]
Summary of employee stock option activity	Shares Weighted Average Fair Value Per Share Weighted Average Exercise Price Per Share Weighted Average Remaining Terms (in years) Aggregate Intrinsic Value Outstanding – December 31, 2017 888,392 $ 1.23 $ 3.86 9.15 $ 1,881,869 Granted 250,000 1.28 4.61 — — Exercised — — — — — Cancelled — — — — — Outstanding – September 30, 2018 1,138,392 $ 1.24 $ 4.03 8.65 $ 570,521 Exercisable – December 31, 2017 738,608 $ 1.22 $ 4.04 9.19 $ 1,435,515 Exercisable – September 30, 2018 890,602 $ 1.23 $ 4.01 8.53 $ 489,401

Construction Backlog (Tables)

Construction Backlog (Tables)	9 Months Ended
	Sep. 30, 2018
Construction Backlog [Abstract]
Schedule of backlog of signed construction and engineering contracts	September 30, 2018 December 31, 2017 Balance – beginning of period $ 76,659,029 $ 541,291 New contracts and change orders during the period 32,112,767 81,179,323 Subtotal 108,771,796 81,720,614 Less: contract revenue earned during the period (5,932,150 ) (5,061,585 ) Balance – end of period $ 102,839,646 $ 76,659,029

Description of Business (Detail

Description of Business (Details) - USD ($)	Jul. 12, 2017	Jul. 31, 2017	Jun. 30, 2017	Jun. 27, 2017	Feb. 28, 2017	Sep. 30, 2018	Sep. 30, 2017
Description of Business (Textual)
Reverse stock split					1-for-3
Proceeds from public stock offering, net of issuance costs							$ 7,062,194
Offering costs						$ 1,565,386
IPO [Member]
Description of Business (Textual)
Shares of common stock	225,000	225,000	1,500,000	1,500,000
Shares issued, price per share				$ 5
Proceeds from public stock offering, net of issuance costs	$ 1,046,250			$ 6,826,558
Commissions and related expenses	78,750			$ 673,442
Additional expenses related to offering	$ 813,195
Warrants [Member]
Description of Business (Textual)
Aggregate purchase warrants						86,250
Exercise price						$ 6.25

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details)	Sep. 30, 2018USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Total Remaining Unsatisfied Performance Obligations	$ 102,839,646
Within 1 year [Member]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Total Remaining Unsatisfied Performance Obligations	19,302,904
1 to 2 years [Member]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Total Remaining Unsatisfied Performance Obligations	63,794,582
Thereafter [Member]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Total Remaining Unsatisfied Performance Obligations	$ 19,742,160

Summary of Significant Accoun_5

Summary of Significant Accounting Policies (Details 1)	3 Months Ended			9 Months Ended
	Sep. 30, 2018USD ($)	Sep. 30, 2017USD ($)	[1]	Sep. 30, 2018USD ($)	Sep. 30, 2017USD ($)	[1]
Disaggregation of Revenue [Line Items]
Total revenue by customer type	$ 2,082,825	$ 1,394,952		$ 5,932,150	$ 3,001,279
Total revenue by customer type, percentage	100	100		100	100
Multi-Family [Member]
Disaggregation of Revenue [Line Items]
Total revenue by customer type	$ 47,026			$ 257,840
Total revenue by customer type, percentage	2			4
Office [Member]
Disaggregation of Revenue [Line Items]
Total revenue by customer type	$ 445,992	$ 137,889		$ 1,039,348	$ 1,111,171
Total revenue by customer type, percentage	22	10		18	38
Retail [Member]
Disaggregation of Revenue [Line Items]
Total revenue by customer type	$ 955,667	$ 92,535		$ 1,487,587	$ 312,999
Total revenue by customer type, percentage	46	7		25	10
School [Member]
Disaggregation of Revenue [Line Items]
Total revenue by customer type	$ 602,641	$ 1,157,453		$ 2,462,880	$ 1,525,168
Total revenue by customer type, percentage	29	83		42	51
Special Use [Member]
Disaggregation of Revenue [Line Items]
Total revenue by customer type	$ 30,990	$ 2,159		$ 667,074	$ 9,208
Total revenue by customer type, percentage	1			11
Other [Member]
Disaggregation of Revenue [Line Items]
Total revenue by customer type	$ 509	$ 4,916		$ 17,421	$ 42,733
Total revenue by customer type, percentage					1
[1]	Prior period amounts have not been adjusted for the adoption of ASC 606 under the modified retrospective method.

Summary of Significant Accoun_6

Summary of Significant Accounting Policies (Details 2)	Sep. 30, 2018USD ($)
Summary of Significant Accounting Policies [Abstract]
2,018	$ 147,565
2,019	145,064
2,020	145,064
2,021	145,064
2,022	140,741
Thereafter	1,867,717
Total estimated amortization expense	$ 2,591,215

Summary of Significant Accoun_7

Summary of Significant Accounting Policies (Details 3)	9 Months Ended
	Sep. 30, 2017USD ($)
Summary of Significant Accounting Policies [Abstract]
Beginning balance	$ 384,461
Aggregate fair value of conversion option liabilities issued
Change in fair value related to conversion of convertible debentures	(288,134)
Change in fair value of conversion option liabilities and warrants	(96,327)
Ending balance

Summary of Significant Accoun_8

Summary of Significant Accounting Policies (Details Textual)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2018USD ($)CustomerVendor	Sep. 30, 2017USD ($)CustomerVendor	Sep. 30, 2018USD ($)CustomerVendor	Sep. 30, 2017USD ($)CustomerVendor	Dec. 31, 2017USD ($)Customer
Summary of Significant Accounting Policies (Textual)
Intangible assets identified bankruptcy proceedings, description			Intangible assets consist of $2,766,000 of proprietary knowledge and technology, which is being amortized over 20 years, and $1,113,000 of customer contracts, which is being amortized over 2.5 years. In addition, intangible assets include trademarks of $28,820 and website of $5,000, which are being amortized over 5 years.
Term of company's operating cycle			The length of the Company’s contracts varies but is typically between six to twelve months.
Warranty offered on completed contracts			1 year
Estimated useful lives			5 years
Accumulated amortization	$ 1,321,604	$ 732,257	$ 1,321,604	$ 732,257
Amortization expense	147,399	147,316	442,031	440,507
Remaining unsatisfied performance obligations	102,839,646		$ 102,839,646
Corporate tax rate, description			Among other things, the TCJA lowered the corporate tax rate from 35.0% to 21.0% and imposed a one-time transition tax on unremitted earnings as of the end of 2017.
Short-term investment					$ 30,033
Joint ventures, description			These joint ventures are characterized by a 50 percent or less, noncontrolling ownership or participation interest, with decision making and distribution of expected gains and losses typically being proportionate to the ownership or participation interest.
Investments in and advances to unconsolidated affiliates	$ 6,956		$ 6,956
Ownership Interest	32.00%		32.00%
Net loss attributable to noncontrolling interests	$ (52,445)		$ (52,445)
Distributions paid to and capital contributions	$ 0		$ 0
Accounts receivable [Member]
Summary of Significant Accounting Policies (Textual)
Number of customers | Customer			2		2
Concentration risk, percentage			67.00%		81.00%
Revenue [Member]
Summary of Significant Accounting Policies (Textual)
Number of customers | Customer	4	1	1	2
Concentration risk, percentage		83.00%	41.00%
Revenue [Member] | Customer one [Member]
Summary of Significant Accounting Policies (Textual)
Concentration risk, percentage	11.00%			51.00%
Revenue [Member] | Customer two [Member]
Summary of Significant Accounting Policies (Textual)
Concentration risk, percentage	14.00%			25.00%
Revenue [Member] | Customer three [Member]
Summary of Significant Accounting Policies (Textual)
Concentration risk, percentage	29.00%
Revenue [Member] | Customer four [Member]
Summary of Significant Accounting Policies (Textual)
Concentration risk, percentage	26.00%
Cost of revenue [Member]
Summary of Significant Accounting Policies (Textual)
Number of vendors | Vendor	4	1	1	2
Concentration risk, percentage	85.00%	59.00%	52.00%	77.00%

Accounts Receivable (Details)

Accounts Receivable (Details) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Summary of accounts receivable
Total gross receivables	$ 2,773,109	$ 3,040,110
Less: allowance for doubtful accounts	(14,904)	(34,235)
Total net receivables	2,758,205	3,005,875
Block sales [Member]
Summary of accounts receivable
Total gross receivables		14,038
Construction services [Member]
Summary of accounts receivable
Total gross receivables	2,228,939	2,652,496
Retainage receivable [Member]
Summary of accounts receivable
Total gross receivables	543,417	373,576
Other receivable [Member]
Summary of accounts receivable
Total gross receivables	$ 753

Costs and Estimated Earnings _3

Costs and Estimated Earnings on Uncompleted Contracts (Details) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Costs and estimated earnings on uncompleted contracts
Costs incurred on uncompleted contracts	$ 9,183,162	$ 3,681,965
Estimated earnings to date on uncompleted contracts	719,589	328,273
Gross contract assets	9,902,751	4,010,238
Less: billings to date	(11,876,802)	(5,622,111)
Net contract assets (liabilities)	$ (1,974,051)	$ (1,611,873)

Costs and Estimated Earnings _4

Costs and Estimated Earnings on Uncompleted Contracts (Details 1) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Costs and estimated earnings amounts on uncompleted contracts included in balance sheets
Costs and estimated earnings in excess of billings on uncompleted contracts	$ 107,689	$ 61,175
Billings in excess of costs and estimated earnings on uncompleted contracts	(2,081,740)	(1,673,048)
Net contract assets (liabilities)	$ (1,974,051)	$ (1,611,873)

Convertible Debentures (Details

Convertible Debentures (Details) - USD ($)	Nov. 17, 2016	Jun. 30, 2016	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Convertible Debentures (Textual)
Total amortization relating to the discount			$ 0	$ 0	$ 0	$ 330,388
Prepaid expenses on offering costs						$ 7,062,194
HCI [Member] | Securities Purchase Agreement [Member]
Convertible Debentures (Textual)
Due date of convertible debentures	Jun. 30, 2018	Jun. 30, 2018
Subscription price sales	$ 750,000	$ 2,000,000
Original issue discount	12.00%	12.00%
Convertible debt principal amount	$ 937,500	$ 2,500,000
Debt conversion, description	The November 2016 Debenture was convertible at HCI’s option at any time, in whole or in part, into shares of the Company’s common stock at a ratio of 1 share for every $3.75 of debt.	The Exit Facility was convertible at HCI’s option at any time, in whole or in part, into shares of the Company’s common stock at a ratio of 1 share for every $3.75 of debt.
November 2016 Debenture [Member] | HCI [Member]
Convertible Debentures (Textual)
Debt conversion, converted instrument amount					$ 1,937,500
Debt conversion, converted instrument, shares issued					516,667
Loss of conversion of debentures					$ 1,018,475
Prepaid expenses on offering costs					$ 1,500,000

Net Income (Loss) Per Share (De

Net Income (Loss) Per Share (Details Textual)	9 Months Ended
	Sep. 30, 2018shares
Options [Member]
Net Income (Loss) Per Share (Textual)
Warrants to purchase shares of common stock	1,188,392
Warrants [Member]
Net Income (Loss) Per Share (Textual)
Warrants to purchase shares of common stock	86,250

Net Income (Loss) Per Share (_2

Net Income (Loss) Per Share (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Net Income (Loss) Per Share [Abstract]
Net loss attributable to common stockholders of SG Blocks, Inc.	$ (1,026,037)	$ (1,043,301)	$ (3,013,042)	$ (3,439,303)
Net loss per share - basic and diluted:
Basic and diluted	$ (0.24)	$ (0.25)	$ (0.71)	$ (2.09)
Weighted average shares outstanding:
Basic and diluted	4,260,041	4,177,890	4,260,041	1,647,916

Stock Options and Grants (Detai

Stock Options and Grants (Details) - Stock options [Member] - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares Outstanding, Beginning balance	888,392
Shares, Granted	250,000
Shares, Exercised
Shares, Cancelled
Shares Outstanding, Ending balance	1,138,392	888,392
Shares, Exercisable	890,602	738,608
Weighted Average Fair Value Per Share, Outstanding, Beginning balance	$ 1.23
Weighted Average Fair Value Per Share, Granted	1.28
Weighted Average Fair Value Per Share, Exercised
Weighted Average Fair Value Per Share, Cancelled
Weighted Average Fair Value Per Share, Outstanding, Ending balance	1.24	$ 1.23
Weighted Average Fair Value Per Share, Exercisable	1.23	1.22
Weighted Average Exercise Price Per Share, Outstanding, Beginning balance	3.86
Weighted Average Exercise Price Per Share, Granted	4.61
Weighted Average Exercise Price Per Share, Exercised
Weighted Average Exercise Price Per Share, Cancelled
Weighted Average Exercise Price Per Share, Outstanding, Ending balance	4.03	3.86
Weighted Average Exercise Price Per Share, Exercisable	$ 4.01	$ 4.04
Weighted Average Remaining Terms (in years), Outstanding, Beginning balance	9 years 1 month 24 days
Weighted Average Remaining Terms (in years), Outstanding, Ending balance	8 years 7 months 24 days
Weighted Average Remaining Terms (in years), Exercisable	8 years 6 months 10 days	9 years 2 months 8 days
Aggregate intrinsic Value, Outstanding, Beginning balance	$ 1,881,869
Aggregate Intrinsic Value, Outstanding, Ending balance	570,521
Aggregate Intrinsic Value, Exercisable	$ 489,401	$ 1,435,515

Stock Options and Grants (Det_2

Stock Options and Grants (Details Textual) - USD ($)	Jul. 26, 2018	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Stock Options and Grants (Textual)
Stock-based compensation				$ 282,416	$ 649,204
Unrecognized compensation costs		$ 277,934		$ 277,934
Non-vested stock options weighted average period				1 year 2 months 26 days
Options granted, description				Options granted to employees and directors of the Company and does not include 50,000 options granted to a consultant during 2017.
Fair value of award (in dollars per share)				$ 4
Stock options [Member]
Stock Options and Grants (Textual)
Stock-based compensation		85,325	$ 439,821	$ 250,639	$ 649,204
Restricted stock units
Stock Options and Grants (Textual)
Stock-based compensation		$ 31,777		$ 31,777
Non-employee director [Member] | Restricted stock units
Stock Options and Grants (Textual)
Award granted (in shares)	27,955
Fair value of award (in dollars per share)	$ 5.21

Warrants (Details)

Warrants (Details) - Warrants [Member]	9 Months Ended
	Sep. 30, 2018USD ($)$ / sharesshares
Warrants (Textual)
Aggregate purchase warrants | shares	86,250
Aggregate value of common stock | $	$ 63,796
Maturity date	Jun. 21, 2023
Common stock exercise price | $ / shares	$ 6.25

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($)	Jul. 12, 2017	Jul. 31, 2017	Jun. 30, 2017	Jun. 27, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Stockholders' Equity (Textual)
Aggregate amount of conversion					$ 2,583,334
Loss on conversion of convertible debentures						$ 1,018,475	$ 1,018,475
Recognized loss on conversion					$ 645,833
2016 Debentures [Member]
Stockholders' Equity (Textual)
Common stock issued upon conversion					516,667
Aggregate amount of conversion					$ 1,937,500
Public Offering [Member]
Stockholders' Equity (Textual)
Issuance of common stock, shares	225,000	225,000	1,500,000	1,500,000
Common stock, per share		$ 5	$ 5
Issuance costs of offering		$ 176,771	$ 1,388,615
Issuance of warrants, shares			75,000
Warrants issued, value			$ 55,475
Aggregate value of common stock		$ 8,321
Warrants to purchase of common stock		11,250
Preferred Stock [Member]
Stockholders' Equity (Textual)
Common stock issued upon conversion					1,801,670

Construction Backlog (Details)

Construction Backlog (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Construction Backlog [Abstract]
Balance - beginning of period	$ 76,659,029	$ 541,291
New contracts and change orders during the period	32,112,767	81,179,323
Subtotal	108,771,796	81,720,614
Less: contract revenue earned during the period	(5,932,150)	(5,061,585)
Balance - end of period	$ 102,839,646	$ 76,659,029

Construction Backlog (Details T

Construction Backlog (Details Textual) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2018USD ($)Number	Sep. 30, 2017USD ($)	Sep. 30, 2018USD ($)Number
Construction Backlog (Textual)
Construction backlog contract amount | $	$ 27	$ 15	$ 55
Number of large contracts | Number	1		2

Commitments and Contingencies (

Commitments and Contingencies (Details)	9 Months Ended
	Sep. 30, 2018USD ($)
Commitments and Contingencies Disclosure [Abstract]
Payment to phipps	$ 500,000