Trinity Place (US:TPHS)2023-05-15 20:59Financial Position - As of March 31, 2023, the company had total cash and restricted cash of $18.8 million, with approximately $2.6 million in cash and cash equivalents and $16.2 million in restricted cash[129]. - The company has approximately $282.9 million of federal net operating loss carryforwards (NOLs) as of March 31, 2023, which can be utilized to reduce future taxable income[128]. - As of March 31, 2023, total cash and restricted cash amounted to $18.8 million, with approximately $2.6 million in cash and cash equivalents and $16.2 million in restricted cash[161]. - U.S. federal net operating losses (NOLs) as of March 31, 2023, were approximately $282.9 million, with a valuation allowance of $80.1 million recorded[193][194]. - The company has utilized approximately $20.1 million of federal NOLs since 2009 through March 31, 2023[193]. Sales and Revenue - The company has closed on the sale of 33 residential condominium units at 77 Greenwich, with 57 units remaining for sale as of March 31, 2023[134]. - Sales of residential condominium units at 77 Greenwich rose by approximately $7.0 million to $13.1 million for the three months ended March 31, 2023, from $6.1 million for the same period in 2022, with five units closed compared to three in the prior year[144]. - Total rental revenues increased by approximately $251,000 to $1.5 million for the three months ended March 31, 2023, compared to $1.3 million for the same period in 2022, driven by higher occupancy and base rents[142]. Expenses and Losses - Property operating expenses increased by approximately $463,000 to $1.3 million for the three months ended March 31, 2023, from $804,000 for the same period in 2022, primarily due to increased legal expenses and less capitalized operating costs[145]. - Interest expense, net increased by approximately $3.5 million to $6.3 million for the three months ended March 31, 2023, from $2.8 million for the same period in 2022, attributed to higher overall interest rates[154]. - Net loss attributable to common stockholders increased by approximately $1.1 million to $6.2 million for the three months ended March 31, 2023, from $5.1 million for the same period in 2022, mainly due to increased net interest expense[157]. Strategic Alternatives and Financing - The company is exploring strategic alternatives, including asset sales, refinancing existing debt, and potential equity or debt financing to secure additional funding[129]. - The company is exploring strategic alternatives, including refinancing existing debt and potential asset sales, to address liquidity concerns and maximize stockholder value[162]. - The company has engaged Houlihan Lokey and Ackman-Ziff as advisors to assist in the strategic review process and evaluate potential alternatives[129]. - The Corporate Credit Facility (CCF) has a total credit limit of $70.0 million, maturing on December 19, 2024, with potential extensions until June 19, 2026[165]. - The Company is required to prepay at least $7.0 million of the CCF by May 1, 2023, and has deferred upcoming cash interest payments until August 31, 2023[167]. - The Company entered into a warrant agreement with the CCF Lender, issuing ten-year warrants to purchase up to 7,179,000 shares at an amended exercise price of $4.31 per share[168]. - The company expects existing capital resources will not be sufficient to fund operations for at least the next 12 months without a strategic transaction or raising additional capital[200]. Property and Construction - The construction at 77 Greenwich has taken longer than projected, with substantial completion expected soon, including the completion of the 42nd floor roof deck and the 12th floor terrace[131]. - The Paramus property consists of approximately 77,000 square feet of rentable space, with a primary building leased to Restoration Hardware Holdings, Inc., scheduled to end on March 31, 2024[137]. - The company has incurred significant cash outflows for repairs and remediation at the 237 11th property due to water damage and other construction defects, with ongoing legal claims to recover costs[137]. Cash Flow Activities - Net cash provided by operating activities increased by approximately $3.7 million to $4.1 million for the three months ended March 31, 2023, compared to $375,000 for the same period in 2022[189]. - Net cash provided by investing activities increased by approximately $7.3 million to $7.2 million for the three months ended March 31, 2023, due to $7.2 million in sale proceeds from the 250 North 10th joint venture property[191]. - Net cash used in financing activities increased by approximately $5.1 million to $14.6 million for the three months ended March 31, 2023, primarily due to a $5.9 million Partner Loan payoff[192]. Debt and Loans - The 77 Mortgage Loan had a balance of $110.0 million as of March 31, 2023, with approximately $58.2 million paid down from proceeds of closed sales of residential condominium units[174]. - The Mezzanine Loan had a balance of $30.3 million as of March 31, 2023, with accrued interest totaling approximately $7.0 million[178]. - The blended interest rate for the 77 Mortgage Loan and the Mezzanine Loan was 10.3% on an annual basis as of March 31, 2023[176]. - The 237 11th Senior Loan and Mezz Loan had outstanding balances of $50.0 million and $10.0 million, respectively, as of March 31, 2023, with a blended interest rate of 5.35% per annum[183]. - The 77 Mortgage Loan has a two-year term with an option to extend for an additional year, subject to certain conditions, and bears interest at a rate of 11.5% as of March 31, 2023[172]. - The 77 Mortgage Loan Agreement was amended in November 2022 to extend the Final Completion date to September 29, 2023, and eliminate the liquidity requirement[172]. - The company is exploring a potential refinancing of the 237 11th Loans, with the lender agreeing in principle to waive the minimum liquidity requirement through the initial maturity date of July 9, 2023[184]. - The secured line of credit with Webster Bank amounts to $11.75 million, with a maturity date extended to March 22, 2024, and an interest rate reduced to 2.5%[185]. Other - The company sold its interest in the 250 North 10th joint venture in February 2023, resulting in net proceeds of approximately $1.2 million and a net gain of approximately $3.1 million[186]. - The company sold no shares of common stock during the three months ended March 31, 2023, or during the year ended December 31, 2022[187]. - The company anticipates that the ATM Program will become available again later in 2023 after a late filing of the Quarterly Report[188]. - General and administrative expenses decreased by approximately $58,000 to $1.4 million for the three months ended March 31, 2023, from $1.5 million for the same period in 2022[147]. - Unrealized gain on warrants increased by approximately $435,000 to $66,000 for the three months ended March 31, 2023, from an unrealized loss of $369,000 for the same period in 2022[153].