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Power REIT(PW) - 2024 Q3 - Quarterly Report
Power REITPower REIT(US:PW)2024-10-31 21:25

Revenue and Income - Total revenue for the three months ended September 30, 2024, was $1,426,112, a significant increase from $488,531 in the same period of 2023, representing a growth of 192%[12] - Rental income from related parties amounted to $785,000 for the nine months ended September 30, 2024, compared to $0 in the same period of 2023, indicating a new revenue stream[12] - Rental income for the three months ended September 30, 2024, was $1,138,504, a decrease from $233,152 in the same period in 2023, while for the nine months ended September 30, 2024, it was $1,628,922, compared to $857,459 in 2023[51] - For the nine months ended September 30, 2024, total revenue from leases was approximately $2.32 million, compared to $1.54 million for the same period in 2023[99] - The Trust recognized a gain on the sale of properties amounting to $394,394 for the nine months ended September 30, 2024, compared to $1,040,452 in the same period of 2023[12] - The Trust recognized a gain on the sale of two greenhouse properties in Colorado of approximately $213,000[93] Expenses and Losses - The net loss attributable to common shareholders for the three months ended September 30, 2024, was $(488,222), a reduction from $(10,185,943) in the same period of 2023, showing an improvement of 95%[12] - For the nine months ended September 30, 2024, the net loss was $21,547,182, compared to a net loss of $12,553,221 for the same period in 2023, representing an increase of 71.5% in losses year-over-year[16] - The net loss for the three months ended September 30, 2024, was $325,015, compared to a net loss of $10,022,736 for the same period in 2023, resulting in a basic and diluted loss per common share of $0.14, down from $3.01[33] - Total expenses for Q3 2024 were $2,101,831, down from $10,511,267 in Q3 2023, reflecting a reduction of approximately 80%[12] - The total impairment charge expense for the nine months ended September 30, 2024, was approximately $18,194,000, compared to $8,235,000 for the same period in 2023, indicating a significant increase of approximately 121%[46] Assets and Liabilities - Total assets decreased from $70,210,240 as of December 31, 2023, to $48,438,349 as of September 30, 2024, reflecting a decline of approximately 31%[9][11] - Total liabilities decreased from $39,440,196 as of December 31, 2023, to $38,665,124 as of September 30, 2024, a reduction of about 2%[10] - As of September 30, 2024, total shareholders' equity was $9,773,225, down from $30,770,044 at December 31, 2023, indicating a decrease of approximately 68.3%[13] - The accumulated deficit increased from $(24,977,922) as of December 31, 2023, to $(46,525,104) as of September 30, 2024, reflecting a worsening financial position[11] - The total liabilities held for sale as of September 30, 2024 are approximately $1,508,210, down from $3,219,337 as of December 31, 2023[116] Cash Flow and Financial Position - The company reported a cash and cash equivalents balance of $2,232,240 as of September 30, 2024, compared to $2,202,632 as of December 31, 2023, indicating a slight increase[9] - Cash and cash equivalents at the end of the period were $2,395,642, down from $3,605,689 at the end of September 2023, a decline of 33.5%[16] - The Trust's cash and cash equivalents decreased by $1.71 million to $2.40 million as of September 30, 2024, compared to December 31, 2023[85] - The net cash used in operating activities for the nine months ended September 30, 2024, was $(1,105,439), an improvement compared to $(2,006,221) for the same period in 2023[16] - The Trust's management expressed substantial doubt about its ability to continue as a going concern due to current liabilities exceeding current assets[87] Stock and Equity - The weighted average number of shares outstanding remained constant at 3,389,661 for both September 30, 2024, and December 31, 2023[12] - The Trust's total common stock equivalents as of September 30, 2024, were 192,778, compared to 197,500 as of September 30, 2023[31] - The total number of shares of Common Stock that may be issued pursuant to outstanding awards is 1,925,002[119] - The balance of stock options as of September 30, 2024, is 192,778, with 140,694 options exercisable[122] - The total amount of undeclared dividends related to the Series A Preferred Stock as of September 30, 2024, is approximately $1.3 million[125] General and Administrative Expenses - General and administrative expenses decreased from $439,046 in Q3 2023 to $338,008 in Q3 2024, a reduction of approximately 23%[12] - General and Administrative Expenses for the three months ended September 30, 2024, were approximately $338,000, a decrease of approximately 23% from $439,000 in the same period in 2023[68] - Stock-based compensation for Q3 2024 was $143,212, contributing to the overall equity adjustments during the period[13] - The company reported stock-based compensation of $550,363 for the nine months ended September 30, 2024, compared to $668,840 for the same period in 2023, reflecting a decrease of 17.6%[16] Debt and Financing - Current loan liabilities totaled approximately $17.0 million as of September 30, 2024, including $16.3 million for the Greenhouse Loan, which is in default[86] - The outstanding balance on the Greenhouse Loan is approximately $16,276,000, with the lender declaring a default on the loan[111] - The Greenhouse Loan's interest rate was modified to the greater of 1% above the Prime rate or 8.75% following amendments made on March 13, 2023[109] - A forbearance agreement for the Greenhouse Loan was extended to January 31, 2025, allowing additional time to address the loan[89] Impairment and Adjustments - The Trust recorded an impairment expense of $18,194,384 for the nine months ended September 30, 2024, compared to $8,235,136 for the same period in 2023, indicating a significant increase in impairment losses[16] - The Trust recorded a non-cash impairment charge of approximately $195,000 for the three months ended September 30, 2024, compared to $8.2 million for the same period in 2023[113] - The total assets held for sale as of September 30, 2024, amount to $27,520,099, a decrease from $48,481,255 as of December 31, 2023[116] Compliance and Regulatory Issues - The Trust received a deficiency letter from NYSE American due to non-compliance with listing requirements, necessitating total equity greater than $2 million[72] - The Trust's net operating loss as of December 31, 2023, was $30.8 million, which may impact its REIT qualification requirements[25] - The Trust does not expect the recent accounting guidance on segment reporting to have a material impact on its financial statements[70]