Revenue Performance - Total revenues for the three months ended September 30, 2024, increased to $9.758 million, up from $8.063 million in the same period of 2023, representing a growth of 21%[9] - Total revenues for the nine months ended September 30, 2024, increased by 24.4% to $27.851 million compared to $22.380 million in the same period in 2023, primarily due to 29 of 41 assets converting to management contracts[154] - Managed property revenue for the quarter was $7,981,000, while base rent income decreased to $1,538,000 from $2,009,000 year-over-year[9] - Managed property revenue reached $20.708 million for the nine months ended September 30, 2024, representing a 100% increase compared to the previous year[154] - Revenue from Metropolis Technologies represented 56.2% of total revenue for the nine months ended September 30, 2024, compared to 61.6% for the same period in 2023[36] Net Loss and Financial Improvement - Net loss for the three months ended September 30, 2024, was $1.890 million, a significant improvement from a net loss of $24.642 million in the same period of 2023[9] - The company reported a net loss of $(1.890) million for September 2024, an improvement from a net loss of $(24.642) million in September 2023[171] - The net loss for the nine months ended September 30, 2024, was $6.22 million, compared to $27.89 million for the same period in 2023[99] - The company reported a basic and diluted loss per share of $0.06 for the three months ended September 30, 2024, compared to a loss of $1.77 in the same period of 2023[9] Expenses and Cost Management - Total operating expenses decreased significantly to $8,848,000, down 74.6% from $34,836,000 in the prior year, primarily due to the absence of one-time expenses related to preferred stock issuance and impairments[143] - General and administrative expenses decreased to $2.684 million for the three months ended September 30, 2024, from $4.154 million in the same period of 2023, a reduction of 35%[9] - Property operating expenses rose to $1,835,000 from $390,000 in the same quarter of 2023[9] - Interest expense decreased to $3,348,000 from $3,618,000 year-over-year, indicating improved financial management[9] Equity and Share Activity - Weighted average common shares outstanding increased to 30,615,113 for the three months ended September 30, 2024, compared to 13,089,848 in the same period of 2023[9] - The company issued 1,056,914 shares through conversions of Series 1 preferred stock during the reporting period[12] - The balance of common stock increased to 31,724,535 shares as of September 30, 2024, reflecting ongoing equity activities[12] - Approximately 8,000 shares of Series 1 Preferred Stock converted to approximately 2.8 million shares of common stock during the nine months ended September 30, 2024[83] Assets and Liabilities - Total assets as of September 30, 2024, were $418.191 million, a slight decrease from $423.237 million as of December 31, 2023[6] - Total liabilities as of September 30, 2024, were $220.910 million, slightly up from $220.282 million as of December 31, 2023[6] - As of September 30, 2024, future principal payments on notes payable total $132.779 million, with $67.151 million due in 2027[70] - The company has $111.1 million of debt due within twelve months, including $53.3 million related to the Revolving Credit Facility and $23.6 million related to the Line of Credit[178] Cash Flow and Financing - Cash and cash equivalents decreased to $8.732 million as of September 30, 2024, down from $11.134 million as of December 31, 2023[6] - Cash flows from operating activities resulted in a net cash used of $1,009 thousand, an improvement from $1,418 thousand in the prior year[14] - The company entered into a $40.4 million Line of Credit in September 2024, maturing in September 2025, with an interest rate of 15.0% per annum[181] - The company authorized a share repurchase program of up to $10 million for its outstanding common stock, funded by proceeds from the Line of Credit[188] Strategic Initiatives and Market Position - The company owns 41 parking facilities across 20 markets in the U.S., totaling approximately 15,300 parking spaces[17] - The company anticipates a hybrid work structure will continue to impact asset performance, particularly in urban centers[139] - The company has identified a pipeline of acquisition opportunities for parking facilities but is unlikely to proceed until more favorable financial market conditions are realized[184] - The company aims to convert the remaining assets to asset management contracts by the end of 2027[140] Legal and Compliance Matters - A settlement in September 2024 resulted in a gain of approximately $0.3 million related to a legal dispute[113] - The company continues to record a full valuation allowance against deferred tax assets due to cumulative losses over the past three years[42]
Mobile Infrastructure (BEEP) - 2024 Q3 - Quarterly Report