Filed Pursuant to Rule 424(b)(3)
Registration No. 333-235707

PROSPECTUS SUPPLEMENT NO. 10
(To Prospectus dated December 6, 2022)

Generation Income Properties, Inc.

This prospectus supplement (the “Prospectus Supplement”) updates, amends, and supplements the prospectus dated December 6, 2022 (the “Prospectus”), which forms a part of our Registration Statement on Form S-11 (Registration No. 333-235707) and is included in Post-Effective Amendment No. 2 thereto filed on November 29, 2022, and declared effective on December 6, 2022. Capitalized terms used in this Prospectus Supplement and not otherwise defined herein have the meanings specified in the Prospectus.

This Prospectus Supplement updates, amends, and supplements the information in the Prospectus with the information contained in our Current Report on Form 10-Q filed with the Securities and Exchange Commission on November 14, 2023 (the “Form 10-Q Filing”). Accordingly, we have attached the Form 10-Q Filing to this Prospectus Supplement.

 

You should read this Prospectus Supplement in conjunction with the Prospectus, including any amendments and supplements thereto. This Prospectus Supplement is qualified by reference to the Prospectus, except to the extent that the information contained in this Prospectus Supplement supersedes the information contained in the Prospectus. This Prospectus Supplement is not complete without, and may not be utilized except in connection with, the Prospectus.

Investing in our securities involves significant risks. See “Risk Factors” of the Prospectus and in Item 1A of our Annual Report on Form 10-K filed on March 28, 2023 to read about factors you should consider before investing in our securities.

Neither the SEC nor any state securities commission has approved or disapproved of these securities or determined if the Prospectus or this Prospectus Supplement is truthful or complete. Any representation to the contrary is a criminal offense.

The date of this prospectus supplement is November 15, 2023.

 

 

 

 

 

 

 

 

 

 


 

g

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended September 30, 2023

OR

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from to

Commission file number 001-40771

 

GENERATION INCOME PROPERTIES, INC.

(Exact name of Registrant as specified in its charter)

 

Maryland

47-4427295

(State or other jurisdiction of

incorporation or organization)

(I.R.S. employer

identification no.)

 

 

401 E. Jackson Street

Suite 3300

Tampa, FL

33602

(Address of principal executive offices)

(Zip code)

 

Registrant’s telephone number, including area code: 813-448-1234

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class:

 

Trading symbol

 

Name of each exchange on which registered

Common Stock par value $0.01 per share

 

GIPR

 

The Nasdaq Stock Market LLC

 

Warrants to purchase Common Stock

 

GIPRW

 

The Nasdaq Stock Market LLC

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.:

Large accelerated filer

 

Accelerated filer

 

Non-accelerated filer

 

Smaller reporting company

 

 

 

 

Emerging growth company

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No

The registrant had 2,619,507 shares of Common Stock, par value $0.01 per share, outstanding as of November 11, 2023.

 


 

GENERATION INCOME PROPERTIES, INC.

TABLE OF CONTENTS

 

 Page

 

 

 

PART I.

FINANCIAL INFORMATION

3

 

 

 

Item 1.

Financial Statements

3

 

 

 

Generation Income Properties, Inc. Consolidated Balance Sheets as of September 30, 2023 (unaudited) and December 31, 2022

3

 

 

 

Generation Income Properties, Inc. Consolidated Statements of Operations and Comprehensive Income for the Three and Nine Months Ended September 30, 2023 and 2022 (unaudited)

4

 

 

 

 

Generation Income Properties, Inc. Consolidated Statements of Changes in Equity for the Three and Nine Months Ended September 30, 2023 and 2022 (unaudited)

5

 

 

 

Generation Income Properties, Inc. Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2023 and 2022 (unaudited)

6

Notes to Unaudited Consolidated Financial Statements

7

 

 

 

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

28

 

 

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

38

 

 

 

Item 4.

Controls and Procedures

38

 

 

 

PART II.

OTHER INFORMATION

40

 

 

 

Item 1.

Legal Proceedings

40

 

 

 

Item 1A.

Risk Factors

40

 

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

41

 

 

 

Item 3.

Defaults Upon Senior Securities

42

 

 

 

Item 4.

Mine Safety Disclosures

42

 

 

 

Item 5.

Other Information

42

 

 

 

Item 6.

Exhibits

43

 

 

SIGNATURES

45


 

 

 


 

PART I. FINANCIAL INFORMATION

ITEM 1. Financial Statements GENERATION INCOME PROPERTIES, INC.

Consolidated Balance Sheets

 

As of September 30,

 

As of December 31,

 

 

2023

 

2022

 

 

(unaudited)

 

 

 

Assets

 

 

 

 

Investments in real estate

 

 

 

 

Land

$

21,996,902

 

$

12,577,544

 

Building and site improvements

 

71,623,505

 

 

39,764,890

 

Acquired tenant improvements

 

2,247,081

 

 

907,382

 

Acquired lease intangible assets

 

10,573,535

 

 

4,677,928

 

Less: accumulated depreciation and amortization

 

(7,478,372

)

 

(5,623,318

)

Net real estate investments

$

98,962,651

 

$

52,304,426

 

Investment in tenancy-in-common

 

-

 

 

1,218,268

 

Cash and cash equivalents

 

4,338,172

 

 

3,718,496

 

Restricted cash

 

34,500

 

 

34,500

 

Deferred rent asset

 

340,198

 

 

288,797

 

Prepaid expenses

 

318,622

 

 

132,642

 

Accounts receivable

 

305,888

 

 

96,063

 

Escrow deposits and other assets

 

303,568

 

 

184,241

 

Right of use asset, net

 

6,169,714

 

 

6,232,662

 

Total Assets

$

110,773,313

 

$

64,210,095

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

Liabilities

 

 

 

 

 Accounts payable

$

304,278

 

$

173,461

 

 Accrued expenses

 

1,007,486

 

 

365,624

 

 Accrued expense - related party

 

587,022

 

 

128,901

 

 Acquired lease intangible liabilities, net

 

1,051,624

 

 

639,973

 

 Insurance payable

 

138,291

 

 

46,368

 

 Deferred rent liability

 

317,449

 

 

251,798

 

 Lease liability, net

 

6,380,708

 

 

6,356,288

 

 Other payable - related party

 

1,809,840

 

 

2,587,300

 

 Loan payable - related party

 

5,500,000

 

 

1,500,000

 

 Mortgage loans, net of unamortized debt discount of $1,374,035 and $717,381 at September 30, 2023 and December 31, 2022, respectively

 

57,078,131

 

 

35,233,878

 

 Total liabilities

$

74,174,829

 

$

47,283,591

 

 

 

 

 

 

 Redeemable Non-Controlling Interests

$

18,424,559

 

$

5,789,731

 

 

 

 

 

 

 Preferred Stock

 

 

 

 

 Series A Redeemable Preferred stock, net, $0.01 par value, 2,400,000 shares authorized, issued, and outstanding at September 30, 2023 with liquidation preferences of $5 per share and no shares authorized or issued at December 31, 2022

$

11,637,616

 

$

-

 

 Stockholders' Equity

 

 

 

 

 Common stock, $0.01 par value, 100,000,000 shares authorized; 2,619,232 and 2,501,644 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively

 

26,192

 

$

25,016

 

 Additional paid-in capital

 

18,683,617

 

 

19,307,518

 

 Accumulated other comprehensive income

 

78,969

 

 

-

 

 Accumulated deficit

 

(12,668,727

)

 

(8,640,796

)

 Total Generation Income Properties, Inc. Stockholders' Equity

$

6,120,051

 

$

10,691,738

 

 

 

 

 

 

 Non-Controlling Interest

$

416,258

 

$

445,035

 

 Total equity

$

6,536,309

 

$

11,136,773

 

 

 

 

 

 

 Total Liabilities and Equity

$

110,773,313

 

$

64,210,095

 

 

The accompanying notes are an integral part of these unaudited consolidated financial statements.

3


 

GENERATION INCOME PROPERTIES, INC.

Consolidated Statements of Statements of Operations and Comprehensive Income (Loss)

(unaudited)

 

 

Three Months ended September 30,

 

 

Nine Months ended September 30,

 

 

2023

 

2022

 

 

2023

 

2022

 

Revenue

 

 

 

 

 

 

 

 

 

Rental income

$

1,841,044

 

$

1,473,789

 

 

$

4,486,501

 

$

4,034,286

 

Other income

 

3,104

 

 

296

 

 

 

23,564

 

 

837

 

Total revenue

$

1,844,148

 

$

1,474,085

 

 

$

4,510,065

 

$

4,035,123

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

General and administrative expense

$

530,538

 

$

408,570

 

 

$

1,233,674

 

$

1,222,986

 

Building expenses

 

431,359

 

 

269,781

 

 

 

1,065,214

 

 

848,373

 

Depreciation and amortization

 

981,419

 

 

561,510

 

 

 

2,096,970

 

 

1,551,079

 

Interest expense, net

 

770,624

 

 

382,440

 

 

 

1,706,585

 

 

1,088,361

 

Compensation costs

 

346,196

 

 

334,992

 

 

 

980,202

 

 

925,432

 

Total expenses

$

3,060,136

 

$

1,957,293

 

 

$

7,082,645

 

$

5,636,231

 

Operating loss

 

(1,215,988

)

 

(483,208

)

 

 

(2,572,580

)

 

(1,601,108

)

Other expense

 

(639

)

 

-

 

 

 

(506,639

)

 

-

 

Income on investment in tenancy-in-common

 

3,362

 

 

16,751

 

 

 

32,773

 

 

23,841

 

Dead deal expense

 

-

 

 

(45,660

)

 

 

(109,569

)

 

(153,031

)

Loss on debt extinguishment

 

-

 

 

-

 

 

 

-

 

 

(144,029

)

Net loss

$

(1,213,265

)

$

(512,117

)

 

$

(3,156,015

)

$

(1,874,327

)

Less: Net income attributable to non-controlling interests

 

425,637

 

 

126,803

 

 

 

681,916

 

 

386,947

 

Net loss attributable to Generation Income Properties, Inc.

$

(1,638,902

)

$

(638,920

)

 

$

(3,837,931

)

$

(2,261,274

)

Less: Preferred stock dividends

 

190,000

 

 

-

 

 

 

190,000

 

 

-

 

Net loss attributable to common shareholders

$

(1,828,902

)

$

(638,920

)

 

$

(4,027,931

)

$

(2,261,274

)

Other comprehensive income:

 

 

 

 

 

 

 

 

 

Gain on change in fair value of derivative instrument

 

78,969

 

 

-

 

 

 

78,969

 

 

-

 

Comprehensive loss attributable to common shareholders

$

(1,749,933

)

$

(638,920

)

 

$

(3,948,962

)

$

(2,261,274

)

 

 

 

 

 

 

 

 

 

 

Total Weighted Average Shares of Common Stock Outstanding – Basic & Diluted

 

2,618,077

 

 

2,304,841

 

 

 

2,591,956

 

 

2,251,522

 

 

 

 

 

 

 

 

 

 

 

Basic & Diluted Loss Per Share Attributable to Common Stockholders

$

(0.70

)

$

(0.28

)

 

$

(1.55

)

$

(1.00

)

 

The accompanying notes are an integral part of these unaudited consolidated financial statements.

4


 

GENERATION INCOME PROPERTIES, INC.

Consolidated Statements of Changes in Equity

(unaudited)

 

Common Stock

 

Additional
 Paid-In Capital

 

Accumulated Other Comprehensive Income

 

Accumulated Deficit

 

Stockholders' Equity

 

Non-Controlling Interest

 

Total Equity

 

Preferred Stock

 

Redeemable Non-Controlling Interest

 

 

Shares

 

Amount

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, December 31, 2021

 

2,172,950

 

$

21,729

 

$

19,051,929

 

$

-

 

$

(5,403,156

)

$

13,670,502

 

$

469,712

 

$

14,140,214

 

$

-

 

$

9,134,979

 

Restricted stock unit compensation

 

47,142

 

 

471

 

 

93,455

 

 

-

 

 

-

 

 

93,926

 

 

-

 

 

93,926

 

 

-

 

 

-

 

Stock issuance costs

 

-

 

 

-

 

 

(6,091

)

 

-

 

 

-

 

 

(6,091

)

 

-

 

 

(6,091

)

 

-

 

 

-

 

Cashless exercise of warrants

 

27,676

 

 

277

 

 

(277

)

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Issuance of Redeemable Non-Controlling Interest for property acquisition

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

1,109,570

 

Distribution on Non-Controlling Interest

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(3,938

)

 

(3,938

)

 

-

 

 

(115,303

)

Dividends paid on common stock

 

-

 

 

-

 

 

(334,799

)

 

-

 

 

-

 

 

(334,799

)

 

-

 

 

(334,799

)

 

-

 

 

-

 

Net (loss) income for the quarter

 

-

 

 

-

 

 

-

 

 

-

 

 

(575,476

)

 

(575,476

)

 

(1,120

)

 

(576,596

)

 

-

 

 

131,083

 

Balance, March 31, 2022

 

2,247,768

 

$

22,477

 

$

18,804,217

 

$

-

 

$

(5,978,632

)

$

12,848,062

 

$

464,654

 

$

13,312,716

 

$

-

 

$

10,260,329

 

Restricted stock unit compensation

 

357

 

 

4

 

 

124,114

 

 

-

 

 

-

 

 

124,118

 

 

-

 

 

124,118

 

 

-

 

 

-

 

Cashless exercise of warrants

 

9,662

 

 

96

 

 

(96

)

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Redemption of Redeemable Non-Controlling Interest

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(406,652

)

Distribution on Non-Controlling Interest

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(3,938

)

 

(3,938

)

 

-

 

 

(118,556

)

Dividends paid on common stock

 

-

 

 

-

 

 

(343,254

)

 

-

 

 

-

 

 

(343,254

)

 

-

 

 

(343,254

)

 

-

 

 

-

 

Net (loss) income for the quarter

 

 

 

 

 

 

 

-

 

 

(1,046,878

)

 

(1,046,878

)

 

(4,329

)

 

(1,051,207

)

 

-

 

 

134,510

 

Balance, June 30, 2022

 

2,257,787

 

$

22,577

 

$

18,584,981

 

$

-

 

$

(7,025,510

)

$

11,582,048

 

$

456,387

 

$

12,038,435

 

$

-

 

$

9,869,631

 

Restricted stock unit compensation

 

-

 

 

-

 

 

110,869

 

 

-

 

 

-

 

 

110,869

 

 

-

 

 

110,869

 

 

-

 

 

-

 

Cashless exercise of warrants

 

31,495

 

 

315

 

 

(315

)

 

 

 

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Common stock issued to redeem Redeemable Non-Controlling Interest

 

200,000

 

 

2,000

 

 

1,198,000

 

 

-

 

 

-

 

 

1,200,000

 

 

-

 

 

1,200,000

 

 

-

 

 

(1,200,000

)

Issuance of Other payable - related party for redemption of Redeemable Non-Controlling Interest

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(2,912,300

)

Distribution on Non-Controlling Interest

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(3,938

)

 

(3,938

)

 

-

 

 

(111,278

)

Dividends paid on common stock

 

-

 

 

-

 

 

(386,765

)

 

-

 

 

-

 

 

(386,765

)

 

-

 

 

(386,765

)

 

-

 

 

-

 

Net (loss) income for the quarter

 

 

 

 

 

 

 

-

 

 

(638,920

)

 

(638,920

)

 

(780

)

 

(639,700

)

 

-

 

 

127,583

 

Balance, September 30, 2022

 

2,489,282

 

$

24,892

 

$

19,506,770

 

$

-

 

$

(7,664,430

)

$

11,867,232

 

$

451,669

 

$

12,318,901

 

$

-

 

$

5,773,636

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, December 31, 2022

 

2,501,644

 

$

25,016

 

$

19,307,518

 

$

-

 

$

(8,640,796

)

$

10,691,738

 

$

445,035

 

$

11,136,773

 

$

-

 

$

5,789,731

 

Restricted stock unit compensation

 

98,593

 

 

986

 

 

89,662

 

 

-

 

 

-

 

 

90,648

 

 

-

 

 

90,648

 

 

-

 

 

-

 

Cashless exercise of warrants

 

10,648

 

 

106

 

 

(106

)

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Issuance of Redeemable Non-Controlling Interest

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

3,000,000

 

Redemption of Redeemable Non-Controlling Interest

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(2,479,299

)

Distribution on Non-Controlling Interest

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(2,844

)

 

(2,844

)

 

-

 

 

(115,817

)

Dividends paid on common stock

 

-

 

 

-

 

 

(297,479

)

 

-

 

 

-

 

 

(297,479

)

 

-

 

 

(297,479

)

 

-

 

 

-

 

Net (loss) income for the quarter

 

-

 

 

-

 

 

-

 

 

-

 

 

(1,317,567

)

 

(1,317,567

)

 

(4,908

)

 

(1,322,475

)

 

-

 

 

132,122

 

Balance, March 31, 2023

 

2,610,885

 

$

26,108

 

$

19,099,595

 

$

-

 

$

(9,958,363

)

$

9,167,340

 

$

437,283

 

$

9,604,623

 

$

-

 

$

6,326,737

 

Restricted stock unit compensation

 

-

 

 

-

 

 

77,039

 

 

-

 

 

-

 

 

77,039

 

 

-

 

 

77,039

 

 

-

 

 

-

 

Cashless exercise of warrants

 

6,653

 

 

67

 

 

(67

)

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Issuance of Redeemable Non-Controlling Interest

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Redemption of Redeemable Non-Controlling Interest

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Distribution on Non-Controlling Interest

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(2,844

)

 

(2,844

)

 

-

 

 

(126,998

)

Dividends paid on common stock

 

-

 

 

-

 

 

(305,991

)

 

-

 

 

-

 

 

(305,991

)

 

-

 

 

(305,991

)

 

-

 

 

-

 

Net (loss) income for the quarter

 

-

 

 

-

 

 

-

 

 

-

 

 

(881,462

)

 

(881,462

)

 

(14,238

)

 

(895,700

)

 

-

 

 

143,303

 

Balance, June 30, 2023

 

2,617,538

 

$

26,175

 

$

18,870,576

 

$

-

 

$

(10,839,825

)

$

8,056,926

 

$

420,201

 

$

8,477,127

 

$

-

 

$

6,343,042

 

Restricted stock unit compensation

 

-

 

 

-

 

 

119,380

 

 

-

 

 

-

 

 

119,380

 

 

-

 

 

119,380

 

 

-

 

 

-

 

Cashless exercise of warrants

 

1,694

 

 

17

 

 

(17

)

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Issuance of Series A Redeemable Preferred Stock

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

11,637,616

 

 

-

 

Issuance of Redeemable Non-Controlling Interest

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

14,100,000

 

Redemption of Redeemable Non-Controlling Interest

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(2,100,000

)

Distribution on Non-Controlling Interest

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(2,844

)

 

(2,844

)

 

-

 

 

(345,219

)

Dividends paid on preferred stock

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(190,000

)

 

-

 

Dividends paid on common stock

 

-

 

 

-

 

 

(306,322

)

 

-

 

 

-

 

 

(306,322

)

 

-

 

 

(306,322

)

 

-

 

 

-

 

Other comprehensive income

 

 

 

 

 

 

 

78,969

 

 

 

 

78,969

 

 

 

 

78,969

 

 

 

 

 

Net (loss) income for the quarter

 

-

 

 

-

 

 

-

 

 

-

 

 

(1,828,902

)

 

(1,828,902

)

 

(1,099

)

 

(1,830,001

)

 

190,000

 

 

426,736

 

Balance, September 30, 2023

 

2,619,232

 

$

26,192

 

$

18,683,617

 

$

78,969

 

$

(12,668,727

)

$

6,120,051

 

$

416,258

 

$

6,536,309

 

$

11,637,616

 

$

18,424,559

 

The accompanying notes are an integral part of these unaudited consolidated financial statements.

5


 

GENERATION INCOME PROPERTIES, INC.

Consolidated Statements of Cash Flows

(unaudited)

 

 

Nine Months Ended September 30,

 

 

 

2023

 

2022

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

Net loss

 

$

(3,156,015

)

$

(1,874,327

)

 Adjustments to reconcile net loss to cash used in operating activities

 

 

 

 

 

Depreciation

 

 

1,371,486

 

 

1,099,254

 

Amortization of acquired tenant improvements

 

 

95,172

 

 

61,960

 

Amortization of acquired lease intangible assets

 

 

630,312

 

 

389,865

 

Amortization of above market leases

 

 

55,337

 

 

-

 

Amortization of below market leases

 

 

(136,745

)

 

(76,069

)

Amortization of above market ground leases

 

 

(549

)

 

(409

)

Amortization of debt issuance costs

 

 

103,990

 

 

89,364

 

Restricted stock unit compensation

 

 

287,067

 

 

328,913

 

Non-cash ground lease expense

 

 

62,948

 

 

50,359

 

Income on investment in tenancy-in-common

 

 

(32,773

)

 

(23,841

)

Dead deal expense

 

 

109,569

 

 

153,031

 

Loss on debt extinguishment

 

 

-

 

 

144,029

 

Write off of deferred financing costs

 

 

-

 

 

137,522

 

 Changes in operating assets and liabilities

 

 

 

 

 

Accounts receivable

 

 

(209,825

)

 

26,711

 

Escrow deposits and other assets

 

 

(40,358

)

 

(74,607

)

Deferred rent asset

 

 

(51,401

)

 

(115,341

)

Prepaid expenses

 

 

(295,549

)

 

(141,976

)

Accounts payable

 

 

130,817

 

 

(96,955

)

Accrued expenses

 

 

1,004,983

 

 

251,263

 

Lease liability

 

 

24,420

 

 

(1,102

)

Deferred rent liability

 

 

65,651

 

 

(51,927

)

Net cash provided by operating activities

 

$