Power REIT(US:PW)2025-05-14 20:52Financial Performance - Total revenue for the three months ended March 31, 2025, was $485,794, a decrease of 9.1% compared to $534,612 for the same period in 2024[12] - Net loss attributable to common shareholders for Q1 2025 was $1,576,319, an improvement from a net loss of $2,240,205 in Q1 2024, representing a 29.6% reduction in losses[12] - Basic and diluted loss per common share for the three months ended March 31, 2025, was $(0.47), an improvement from $(0.66) in 2024[34] - Total expenses for Q1 2025 were $1,869,836, down 37.7% from $3,006,004 in Q1 2024[1] - Total revenue from leases for the three months ended March 31, 2025, was approximately $439,000, down from $489,000 in the same period of 2024, representing a decrease of about 10.2%[78] Assets and Liabilities - Total assets as of March 31, 2025, were $45,600,250, a decrease of 1.1% from $46,102,638 as of December 31, 2024[10] - Total liabilities increased to $40,117,271 as of March 31, 2025, up from $39,349,760 at the end of 2024, reflecting a 1.9% rise[10] - The total equity as of March 31, 2025, was $5,482,979, down from $6,752,878 as of December 31, 2024, indicating a decline of 18.8%[10] - The Trust's current loan liabilities amounted to approximately $18.4 million, with $17.6 million related to a bank loan secured by the greenhouse portfolio, which is in default[68] - The total assets held for sale as of March 31, 2025, amounted to $25,431,640, while total liabilities held for sale were $1,544,941[94] Cash Flow and Liquidity - Cash and cash equivalents decreased to $2,019,501 as of March 31, 2025, down from $2,194,502 at the end of 2024, a decline of 7.9%[10] - The Trust reported a cash decrease of $198,375 in cash and cash equivalents and restricted cash during Q1 2025[19] - The Trust's cash and cash equivalents decreased to $2,033,211 as of March 31, 2025, a decrease of $198,375 from December 31, 2024[67] - The Greenhouse Loan resolution on April 11, 2025, is expected to alleviate going concern doubts, providing over twelve months of liquidity for capital needs[71] Expenses and Cost Management - General and administrative expenses for Q1 2025 were $326,928, a decrease of 28% compared to $453,653 in Q1 2024[12] - Stock-based compensation expense for Q1 2025 was $143,213, down from $216,475 in Q1 2024[1] - Depreciation expense for the three months ended March 31, 2025, was approximately $2,702, compared to $488,000 for the same period in 2024, indicating a significant reduction in depreciation[38] - Interest expense for the three months ended March 31, 2025, was approximately $171,000, compared to $174,000 for the same period in 2024[60] Strategic Actions and Future Plans - The Trust plans to focus on selling greenhouse properties and improving cash collections from existing tenants to enhance liquidity[72] - The Trust is exploring strategic alternatives for its CEA portfolio due to significant financial distress among cannabis-related tenants[79] - On January 31, 2025, Power REIT sold a cannabis-related greenhouse property for $200,000, with net proceeds used to pay down the Greenhouse Loan[25] Shareholder Information - The company did not declare a quarterly dividend of approximately $163,000 during the three months ended March 31, 2025[24] - The Trust did not declare a quarterly dividend of approximately $163,000 to holders of its 7.75% Series A Cumulative Redeemable Perpetual Preferred Stock for the three months ended March 31, 2025 and 2024[104] Legal and Compliance Issues - The Greenhouse Loan has been in default, leading to litigation and foreclosure actions, with a settlement agreement reached on April 11, 2025[28] - 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[26] - The Trust's liabilities increased to $40,117,271 as of March 31, 2025, compared to $39,349,760 at the end of 2024, reflecting an increase of approximately 1.9%[10]