Financial Performance - Total revenue for the year ended December 31, 2024, was $3,049,875, an increase of 37.2% compared to $2,222,483 in 2023[300] - The net loss for 2024 was $(24,710,741), compared to $(14,365,513) in 2023, indicating a decline in profitability[342] - Net loss attributable to common shareholders increased to $25,363,569 in 2024 from $15,018,342 in 2023, representing an increase of 68.8%[303] - Core Funds From Operations (Core FFO) available to common shares for 2024 was $(3,884,098), compared to $(4,173,118) in 2023, showing an improvement[342] - Core FFO per common share for 2024 was $(1.15), slightly better than $(1.23) in 2023[342] Asset and Impairment - A non-cash impairment charge of approximately $20 million was recorded in 2024, compared to $8.2 million in 2023, primarily related to greenhouse properties[301] - Impairment expense recorded in 2024 was approximately $19,954,260, significantly higher than the $8,235,136 recorded in 2023[342] - The company anticipates potential future impairment charges if estimated fair values of assets decline further[337] Debt and Liabilities - Current loan liabilities totaled approximately $17.4 million as of December 31, 2024, including $16.7 million from a bank loan secured by the greenhouse portfolio, which is in default[307] - Total debt as of December 31, 2024, is approximately $37,400,000, with $14,500,000 related to PWV, $6,700,000 to PWRS, and $16,700,000 to the Greenhouse Loan[312] - The total principal payments remaining on consolidated debt as of December 31, 2024, is $37,889,917, with $17,468,764 due in 2025[328] - The Greenhouse Loan is currently in default with an outstanding balance of approximately $16,720,000, and the lender has initiated litigation seeking foreclosure[326] - The Trust is exploring options to resolve the Greenhouse Loan, which is in default and subject to potential foreclosure actions starting in Q1 2026[308] Cash and Liquidity - The Trust's cash and cash equivalents decreased by $1,873,298 to $2,231,586 as of December 31, 2024, primarily due to expenses related to vacant greenhouse properties[306] - The Trust's ability to raise capital through the sale of securities may be limited until the market value of its voting securities held by non-affiliates reaches $75 million or more[286] - A forbearance agreement was effective on May 10, 2024, extending the original expiration date from September 30, 2024, to January 31, 2025, but has since terminated, putting the greenhouse portfolio at risk[326] - The maturity date of the Greenhouse Loan has been changed to December 21, 2025, with a required minimum liquidity amount of $1 million[327] Revenue Sources - Approximately 88% of consolidated revenue in 2024 was generated from three tenants: Norfolk Southern Railway (32%), Regulus Solar LLC (28%), and Marengo Cannabis LLC (28%)[305] - Power REIT anticipates generating approximately $1,700,000 in cash rent from existing leases as of December 31, 2024[312] Asset Sales - The Trust completed sales of assets for total gross proceeds of approximately $9.89 million in 2023 and 2024, including $2.1 million of seller financing provided to buyers[296] - The Trust sold four properties in 2024 for approximately $2.6 million, receiving unrestricted net proceeds of approximately $662,000[312] Stockholder Equity - The Trust's stockholders' equity was reported at $322,626 as of June 30, 2024, below the NYSE American requirement of greater than $2 million[317] - The Trust concluded that its Preferred Shares should be treated as Equity rather than Mezzanine Equity, leading to a restatement of financial statements[318] Other Financial Metrics - Interest expense related to amortization of debt costs was $31,391 in 2024, a decrease from $290,554 in 2023[342] - The company recorded stock-based compensation of $693,575 in 2024, down from $885,314 in 2023[342] - The weighted average shares outstanding (basic) remained constant at 3,389,661 for both 2024 and 2023[342] - The debt service related to PWV and PWRS loans is anticipated to be approximately $750,000 over the next twelve months[312] - The Greenhouse Loan's interest rate was modified to the greater of 1% above the Prime rate or 8.75%[327]
Power REIT(PW) - 2024 Q4 - Annual Report