Tue, Sep 24, 9:19 PM (87 days ago)
Power REIT's 10-Q/A for Q2 2024 indicates significant financial distress, marked by a substantial net loss of $21.5 million, primarily due to a $18 million impairment charge and increased interest expenses related to a defaulted Greenhouse Loan. Revenue decreased to $1.05 million from $1.22 million year-over-year, reflecting challenges in the cannabis sector, particularly with tenants defaulting on lease obligations. The Trust's total assets fell sharply from $70.2 million at year-end 2023 to $49.8 million, while current liabilities rose to approximately $16.4 million, significantly exceeding current assets. A key amendment in this filing reclassifies the Series A Preferred Stock from mezzanine equity to equity, correcting prior misclassifications and improving compliance with NYSE listing requirements. The Trust's liquidity remains precarious, with cash and equivalents totaling $2.9 million, and a substantial portion tied to restricted cash. The ongoing default on the Greenhouse Loan poses a risk of foreclosure, with management actively exploring asset sales and restructuring strategies to stabilize operations. The Trust's future operations are uncertain, hinging on effective asset monetization and improved cash flow management.