Revenue and Loss - Total revenue for the three months ended June 30, 2024, was $519,349, compared to $217,898 for the same period in 2023, representing a 138% increase[7] - For the six months ended June 30, 2024, Power REIT reported a net loss of $21,222,167, compared to a net loss of $2,530,485 for the same period in 2023[9] - For the three months ended June 30, 2024, the net loss was $19,145,169 compared to a net loss of $2,191,439 for the same period in 2023, representing an increase of approximately 775%[24] - The basic and diluted loss per common share for the six months ended June 30, 2024, was $(6.36), compared to $(0.84) for the same period in 2023, indicating a significant decline in performance[24] - The net loss attributable to common shareholders for the three months ended June 30, 2024, was $(19,308,376), compared to $(2,354,646) for the same period in 2023, indicating a significant increase in losses[7] Assets and Liabilities - Total assets decreased from $70,210,240 as of December 31, 2023, to $49,789,487 as of June 30, 2024, a decline of approximately 29%[6] - Total liabilities increased slightly from $39,440,196 as of December 31, 2023, to $39,834,459 as of June 30, 2024[6] - The company’s total real estate assets decreased from $27,655,547 as of December 31, 2023, to $23,442,758 as of June 30, 2024, a decline of about 15%[6] - The accumulated deficit increased to $(47,342,539) as of June 30, 2024, compared to $(25,793,958) as of December 31, 2023[6] - As of June 30, 2024, total shareholders' equity was $322,626, a significant decrease from $21,464,056 at December 31, 2023[8] Cash and Cash Equivalents - Cash and cash equivalents increased to $2,455,133 as of June 30, 2024, from $2,202,632 as of December 31, 2023, reflecting a growth of about 11%[6] - Cash and cash equivalents and restricted cash decreased to $2,935,628 at June 30, 2024, down from $4,104,884 at December 31, 2023[20] - As of June 30, 2024, the Trust's cash and cash equivalents totaled $2,935,628, a decrease of $1,169,256 from December 31, 2023[57] Impairment and Expenses - The company reported an impairment expense of $17,449,424 for the three months ended June 30, 2024, compared to no impairment expense in the same period of 2023[7] - During the six months ended June 30, 2024, the Trust recognized an impairment expense of $17,998,981[9] - The Trust recorded approximately $17,999,000 in impairment charges for the six months ended June 30, 2024, compared to no impairment charges during the same period in 2023[35] - General and administrative expenses decreased to $359,474 for the three months ended June 30, 2024, down from $464,504 in the same period of 2023, a reduction of approximately 23%[7] - General and Administrative Expenses for the six months ended June 30, 2024, were approximately $813,000, compared to $892,000 for the same period in 2023[54] Debt and Financing - Principal payments on long-term debt totaled $1,096,246 during the six months ended June 30, 2024[9] - Current loan liabilities amounted to approximately $16.4 million, including about $15.7 million for the Greenhouse Loan, which is in default and non-recourse to the Trust[58] - The total long-term debt of Power REIT as of June 30, 2024, is approximately $37,381,420, with principal payments remaining totaling $16,211,049 for the remainder of 2024[81] - The Greenhouse Loan's total commitment was reduced from $20 million to $16 million, with an amended interest rate structure[77] Property and Assets Held for Sale - As of June 30, 2024, the Trust has nine properties classified as assets held for sale[31] - The assets held for sale as of June 30, 2024, total approximately $17,812,866, down from $34,363,172 as of December 31, 2023[84] - The total assets of the greenhouse cultivation and processing facilities, net of accumulated depreciation, decreased from $31,532,816 as of December 31, 2023, to $16,171,777 as of June 30, 2024[84] Strategic Alternatives and Future Outlook - The Trust is exploring strategic alternatives for its cannabis-related assets due to significant financial distress among tenants[70] - The Trust's management has substantial doubt about its ability to continue as a going concern due to current liabilities exceeding current assets and increased property expenses[58] Stock and Equity - The aggregate number of shares of Common Stock that may be issued pursuant to outstanding awards under the 2020 Equity Incentive Plan is currently 1,925,002[85] - As of June 30, 2024, the Trust has 197,500 stock options outstanding with a weighted average exercise price of $13.44 and 126,181 options exercisable[89] - The Trust accrued approximately $326,000 in dividends to holders of Series A Preferred Stock during the six months ended June 30, 2024[92] - The Trust's balance of restricted stock as of June 30, 2024, is 7,221 shares with a weighted average grant date fair value of $13.44[90] Other Income and Expenses - Other income for the six months ended June 30, 2024, included approximately $106,000, primarily from interest income[53] - The Trust recognized a gain on the sale of two greenhouse properties in Colorado of approximately $213,000[64] - The Trust sold three properties in early 2024, generating approximately $662,000 of unrestricted cash and retiring a $456,000 loan[59]
Power REIT(PW) - 2024 Q2 - Quarterly Report