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

 

PROSPECTUS SUPPLEMENT NO. 6
(To Prospectus dated September 2, 2021)

 

 

Generation Income Properties, Inc.

 

 

This prospectus supplement (the “Prospectus Supplement”) updates, amends, and supplements the prospectus dated September 2, 2021 (the “Prospectus”), which forms a part of our Registration Statement on Form S-11 (Registration No. 333-235707). 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 August 15, 2022. Accordingly, we have attached the Form 10-Q 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” beginning on page 16 of the Prospectus and in Item 1A of our Annual Report on Form 10-K filed on March 18, 2022 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 August 15, 2022.

 

 

1


 

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 June 30, 2022

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 2,260,998 shares of Common Stock, par value $0.01 per share, outstanding as of August 12, 2022.

 

 


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
June 30, 2022 (unaudited) and December 31, 2021

3

 

 

 

 

Generation Income Properties, Inc. Consolidated Statements of Operations
Three and Six Months Ended June 30, 2022 and 2021 (unaudited)

4

 

 

 

 

Generation Income Properties, Inc. Consolidated Statements of Changes in Equity for the Six Months Ended June 30, 2022 and 2021 (unaudited)

5

 

 

 

 

Generation Income Properties, Inc. Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2022 and 2021 (unaudited)

7

 

Notes to Unaudited Consolidated Financial Statements

8

 

 

 

Item 2.

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

25

 

 

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

34

 

 

 

Item 4.

Controls and Procedures

34

 

 

 

PART II.

OTHER INFORMATION

35

 

 

 

Item 1.

Legal Proceedings

35

 

 

 

Item 1A.

Risk Factors

35

 

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

35

 

 

 

Item 3.

Defaults Upon Senior Securities

35

 

 

 

Item 4.

Mine Safety Disclosures

36

 

 

 

Item 5.

Other Information

36

 

 

 

Item 6.

Exhibits

37

 

 

SIGNATURES

38

 

 


PART I. FINANCIAL INFORMATION

ITEM 1. Financial Statements

Generation Income Properties, Inc. Consolidated Balance Sheets (unaudited)

 

 

As of June 30,

 

 

As of December 31,

 

 

2022

 

 

2021
(As corrected, see Note 2)

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

Investments in real estate

 

 

 

 

 

Land

$

12,577,544

 

 

$

9,443,445

 

Building and site improvements

 

39,695,210

 

 

 

31,581,864

 

Tenant improvements

 

907,382

 

 

 

482,701

 

Acquired lease intangible assets

 

4,677,928

 

 

 

3,304,014

 

Less: accumulated depreciation and amortization

 

(4,501,912

)

 

 

(3,512,343

)

Net real estate investments

$

53,356,152

 

 

$

41,299,681

 

Investment in tenancy-in-common

 

1,188,061

 

 

 

725,082

 

Cash and cash equivalents

 

3,649,084

 

 

 

10,589,576

 

Restricted cash

 

34,581

 

 

 

34,500

 

Deferred rent asset

 

197,364

 

 

 

156,842

 

Deferred financing costs

 

87,020

 

 

 

-

 

Prepaid expenses

 

256,817

 

 

 

237,592

 

Accounts receivable

 

94,797

 

 

 

88,661

 

Escrow deposits and other assets

 

159,969

 

 

 

288,782

 

Right of use asset, net

 

6,275,398

 

 

 

-

 

Total Assets

$

65,299,243

 

 

$

53,420,716

 

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 Accounts payable

$

21,769

 

 

$

201,727

 

 Accrued expenses

 

398,710

 

 

 

134,816

 

 Acquired lease intangible liabilities, net

 

692,567

 

 

 

577,388

 

 Insurance payable

 

207,837

 

 

 

33,359

 

 Deferred rent liability

 

286,931

 

 

 

228,938

 

 Right of use liability, net

 

6,327,851

 

 

 

-

 

Mortgage loans, net of unamortized debt issuance costs of $786,490 and $637,693 at June 30, 2022 and December 31, 2021, respectively

 

35,455,512

 

 

 

28,969,295

 

 Total liabilities

$

43,391,177

 

 

$

30,145,523

 

 

 

 

 

 

 

 Redeemable Non-Controlling Interests

$

9,869,631

 

 

$

9,134,979

 

 

 

 

 

 

 

 Stockholders' Equity

 

 

 

 

 

 Common stock, $0.01 par value, 100,000,000 shares authorized; 2,257,787 and 2,172,950 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively

 

22,577

 

 

 

21,729

 

 Additional paid-in capital

 

18,584,981

 

 

 

19,051,929

 

 Accumulated deficit

 

(7,025,510

)

 

 

(5,403,156

)

 Total Generation Income Properties, Inc. Stockholders' equity

$

11,582,048

 

 

$

13,670,502

 

 

 

 

 

 

 

 Non-Controlling Interest

$

456,387

 

 

$

469,712

 

 Total equity

$

12,038,435

 

 

$

14,140,214

 

 

 

 

 

 

 

 Total Liabilities and Equity

$

65,299,243

 

 

$

53,420,716

 

 

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

 


Generation Income Properties, Inc. Consolidated Statements of Operations (unaudited)

 

 

Three Months ended June 30,

 

 

Six Months ended June 30,

 

 

2022

 

2021
(As corrected, see Note 2)

 

 

2022

 

2021
(As corrected, see Note 2)

 

Revenue

 

 

 

 

 

 

 

 

 

Rental income

$

1,378,562

 

$

988,190

 

 

$

2,560,497

 

$

1,925,078

 

Other income

 

541

 

 

-

 

 

 

541

 

 

-

 

Total revenue

$

1,379,103

 

$

988,190

 

 

$

2,561,038

 

$

1,925,078

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

General, administrative and organizational costs

$

472,736

 

$

251,825

 

 

$

814,416

 

$

440,242

 

Building expenses

 

325,201

 

 

163,722

 

 

 

578,592

 

 

344,275

 

Depreciation and amortization

 

558,676

 

 

397,186

 

 

 

989,569

 

 

776,697

 

Interest expense, net

 

375,627

 

 

337,432

 

 

 

705,921

 

 

692,421

 

Compensation costs

 

310,698

 

 

155,690

 

 

 

590,440

 

 

310,811

 

Total expenses

$

2,042,938

 

$

1,305,855

 

 

$

3,678,938

 

$

2,564,446

 

Operating loss

 

(663,835

)

 

(317,665

)

 

 

(1,117,900

)

 

(639,368

)

Income (loss) on investment in tenancy-in-common

 

(1,462

)

 

-

 

 

 

7,090

 

 

-

 

Dead deal expense

 

(107,371

)

 

-

 

 

 

(107,371

)

 

-

 

Loss on debt extinguishment

 

(144,029

)

 

-

 

 

 

(144,029

)

 

-

 

Net loss

$

(916,697

)

$

(317,665

)

 

$

(1,362,210

)

$

(639,368

)

Less: Net income attributable to non-controlling interests

 

130,181

 

 

52,324

 

 

 

260,144

 

 

198,504

 

Net loss attributable to Generation Income Properties, Inc.

$

(1,046,878

)

$

(369,989

)

 

$

(1,622,354

)

$

(837,872

)

 

 

 

 

 

 

 

 

 

 

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

 

2,255,441

 

 

582,867

 

 

 

2,224,419

 

 

581,264

 

 

 

 

 

 

 

 

 

 

 

Basic & Diluted Loss Per Share Attributable to Common Stockholders

$

(0.46

)

$

(0.63

)

 

$

(0.73

)

$

(1.44

)

 

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

 


Generation Income Properties, Inc. Consolidated Statements of Changes in Equity

(unaudited)

 

 

Common Stock

 

 

Additional
 Paid-In

 

 

Accumulated

 

 

Stockholders'

 

 

Non-Controlling

 

 

 

 

 

Redeemable Non-Controlling

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Deficit

 

 

Equity

 

 

Interest

 

 

Total Equity

 

 

Interest

 

Balance, December 31, 2020 (As corrected, see Note 2)

 

 

576,918

 

 

$

5,770

 

 

$

5,541,411

 

 

$

(4,177,142

)

 

$

1,370,039

 

 

$

486,180

 

 

$

1,856,219

 

 

$

8,198,251

 

Common stock issued for services

 

 

2,200

 

 

 

22

 

 

 

43,978

 

 

 

 

 

 

44,000

 

 

 

-

 

 

 

44,000

 

 

 

-

 

Restricted stock unit compensation

 

 

3,749

 

 

 

37

 

 

 

49,434

 

 

 

 

 

 

49,471

 

 

 

-

 

 

 

49,471

 

 

 

-

 

Issuance of Redeemable Non-Controlling Interest for property acquisition

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

500,000

 

Distribution on Non-Controlling Interest

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(150,826

)

Dividends paid on common stock

 

 

-

 

 

 

 

 

 

(114,373

)

 

 

 

 

 

(114,373

)

 

 

-

 

 

 

(114,373

)

 

 

-

 

Net (loss) income for the quarter (As corrected, see Note 2)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(467,883

)

 

 

(467,883

)

 

 

(4,646

)

 

 

(472,529

)

 

 

150,826

 

Balance, March 31, 2021 (As corrected, see Note 2)

 

 

582,867

 

 

$

5,829

 

 

$

5,520,450

 

 

$

(4,645,025

)

 

$

881,254

 

 

$

481,534

 

 

$

1,362,788

 

 

$

8,698,251

 

Restricted stock unit compensation

 

 

-

 

 

 

-

 

 

 

50,278

 

 

 

-

 

 

 

50,278

 

 

 

-

 

 

 

50,278

 

 

 

-

 

Issuance of Redeemable Non-Controlling Interest for property acquisition

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

950,000

 

Distribution on Non-Controlling Interest

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(2,748

)

 

 

(2,748

)

 

 

(56,400

)

Net (loss) income for the quarter (As corrected, see Note 2)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(369,989

)

 

 

(369,989

)

 

 

(4,076

)

 

 

(374,065

)

 

 

56,400

 

Balance, June 30, 2021 (As corrected, see Note 2)

 

 

582,867

 

 

$

5,829

 

 

$

5,570,728

 

 

$

(5,015,014

)

 

$

561,543

 

 

$

474,710

 

 

$

1,036,253

 

 

$

9,648,251

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

 

 

 

Balance, December 31, 2021 (As corrected, see Note 2)

 

 

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 (As corrected, see Note 2)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(575,476

)

 

 

(575,476

)

 

 

(1,120

)

 

 

(576,596

)

 

 

131,083

 

Balance, March 31, 2022 (As corrected, see Note 2)

 

 

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

 

 

 


Generation Income Properties, Inc. Consolidated Statements of Cash Flows

(unaudited)

 

 

Six Months Ended June 30,

 

 

 

2022

 

 

2021

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

Net loss

 

$

(1,362,210

)

 

$

(639,368

)

Adjustments to reconcile net loss to cash used in operating activities

 

 

 

 

 

 

Depreciation

 

 

737,552

 

 

 

559,962

 

Amortization of acquired lease intangible assets

 

 

252,017

 

 

 

216,735

 

Amortization of debt issuance costs

 

 

61,606

 

 

 

63,922

 

Amortization of below market leases

 

 

(49,955

)

 

 

(75,592

)

Amortization of above market ground lease

 

 

(226

)

 

 

-

 

Common stock issued for services

 

 

-

 

 

 

33,000

 

Restricted stock unit compensation

 

 

218,044

 

 

 

99,749

 

Non-cash ground lease expense

 

 

28,936

 

 

 

-

 

Income on investment in tenancy-in-common

 

 

(7,090

)

 

 

-

 

Dead deal expense

 

 

107,371

 

 

 

-

 

Loss on debt extinguishment

 

 

144,029

 

 

 

-

 

Changes in operating assets and liabilities

 

 

 

 

 

 

Accounts receivable

 

 

(6,136

)

 

 

(20,018

)

Other assets

 

 

(46,187

)

 

 

(39,070

)

Deferred rent asset

 

 

(40,522

)

 

 

(5,624

)

Prepaid expenses

 

 

(126,596

)

 

 

(133,792

)

Accounts payable

 

 

(179,958

)

 

 

44,652

 

Accrued expenses

 

 

60,568

 

 

 

(80,523

)

Right of use liability

 

 

23,517

 

 

 

-

 

Deferred rent liability

 

 

57,993

 

 

 

(62,271

)

Net cash used in operating activities

 

$

(127,247

)

 

$

(38,238

)

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

Purchase of land, buildings, other tangible and intangible assets

 

$

(12,780,680

)

 

$

(3,530,810

)

Escrow return for purchase of properties

 

 

75,000

 

 

 

-

 

Investment in tenancy-in-common

 

 

(455,889

)

 

 

-

 

Net cash used in investing activities

 

$

(13,161,569

)

 

$

(3,530,810

)

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

Proceeds from issuance of redeemable interest

 

$

1,109,570

 

 

$

1,450,000

 

Redemption of redeemable non-controlling interests

 

 

(203,326

)

 

 

-

 

Mortgage loan borrowings

 

 

17,650,000

 

 

 

2,125,000

 

Mortgage loan repayments

 

 

(11,014,986

)

 

 

(225,326

)

Stock issuance costs

 

 

(6,091

)

 

 

-

 

Deferred financing costs

 

 

(87,020

)

 

 

(34,150

)

Debt issuance costs

 

 

(354,432

)

 

 

(39,991

)

Insurance financing borrowings

 

 

288,693

 

 

 

277,059

 

Insurance financing repayments

 

 

(114,215

)

 

 

(172,769

)

Distribution on non-controlling interests

 

 

(241,735

)

 

 

(209,974

)

Dividends paid on common stock

 

 

(678,053

)

 

 

(114,373

)

Net cash generated from financing activities

 

$

6,348,405

 

 

$

3,055,476

 

 

 

 

 

 

 

 

Net decrease in cash and cash equivalents

 

$

(6,940,411

)

 

$

(513,572

)

Cash and cash equivalents and restricted cash - beginning of period

 

 

10,624,076

 

 

 

1,122,364

 

Cash and cash equivalents and restricted cash - end of period

 

$

3,683,665

 

 

$

608,792

 

 

 

 

 

 

 

 

CASH TRANSACTIONS

 

 

 

 

 

 

Interest Paid

 

$

624,470

 

 

$

629,147

 

NON-CASH TRANSACTIONS

 

 

 

 

 

 

Stock issued for cashless exercise of Investor Warrants

 

$

373

 

 

 

 

Stock issued for accrued liabilities

 

$

-

 

 

$

11,000

 

Deferred distribution on redeemable non-controlling interests

 

$

31,734

 

 

$

-

 

Right of use asset and liability for ground lease related to property acquisition

 

$

6,304,334

 

 

$

-

 

Redemption of redeemable non-controlling interests accrued

 

$

203,326

 

 

$

-

 

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

 

 


GENERATION INCOME PROPERTIES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Note 1 – Nature of Operations

Generation Income Properties, Inc. (the “Company”) was formed as a Maryland corporation on September 19, 2015. The Company is an internally managed real estate investment company focused on acquiring and managing income-producing retail, office and industrial properties net leased to high quality tenants in major markets throughout the United States.

The Company formed Generation Income Properties L.P. (the “Operating Partnership”) in October 2015. Substantially all of the Company’s assets are held by, and operations are conducted through, the Operating Partnership or its direct or indirect subsidiaries. The Company is the general partner of the Operating Partnership and as of June 30, 2022 owned 83% of the outstanding common units of the Operating Partnership. The Company formed a Maryland entity GIP REIT OP Limited LLC in 2018 that owns 0.002% of the Operating Partnership.

 

As of June 30, 2022, the Company, the Operating Partnership, and their controlled subsidiaries on a consolidated basis owned 12 properties and held partial interests in one additional property through a tenancy-in-common investment.

Note 2 – Summary of Significant Accounting Policies

Basis of Presentation

The information furnished reflects all adjustments, consisting only of normal recurring items which are, in the opinion of management, necessary in order to make the financial statements not misleading. Certain information and footnote disclosures normally present in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) were omitted pursuant to such rules and regulations. These financial statements should be read in conjunction with the audited financial statements and footnotes included in the Company’s Annual Report on Form 10-K filed with the SEC on March 18, 2022. The results for the three and six months ended June 30, 2022 are not necessarily indicative of the results to be expected for the year ending December 31, 2022.

The Company adopted the calendar year as its basis of reporting. Certain immaterial prior year amounts have been reclassified for consistency with the current period presentation.

Immaterial Correction of Previously Issued Consolidated Financial Statements


Subsequent to the filing of the Company’s Form 10K for the fiscal year ended December 31, 2021, wand Form 10Q for the quarterly period ended March 31, 2022, management of the Company identified an error in the application of Accounting Standards Codification (ASC) 480-10, Distinguishing Liabilities from Equity. Specifically, the Company incorrectly classified the partnership interest of GIP Fund 1, LLC in the Operating Partnership as Redeemable Non-Controlling Interests rather than Non-Controlling Interest within Equity. The Company has evaluated the effects of the resulting corrections detailed in the tables below on the previously issued consolidated financial statements, individually and in the aggregate, in accordance with the guidance in ASC 250, Accounting Changes and Error Corrections. Management has determined the effect of the error is immaterial to the Company’s previously issued consolidated financial statements as of December 31, 2021 and 2020, as of and for the three months ended March 31, 2022 and 2021, as of and for the three and six months ended June 30, 2021, and as of and for the three and nine months ended September 30, 2021, and the financial statement line items impacted by this error have been corrected. In addition, the impact of the error will be corrected prospectively in the Company’s subsequent quarterly and annual filings. The tables below reflect the sections of the Company’s condensed consolidated financial statements that were impacted by the error.

 


Condensed Balance Sheets

 

As of December 31,

 

 

 

 

 

As of December 31,

 

 

2021

 

 

 

 

 

2021

 

 

As Reported

 

 

Adjustment

 

 

As Corrected

 

Total Assets

$

53,420,716

 

 

$

-

 

 

$

53,420,716

 

 

 

 

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

 

 

 

 

 Total liabilities

$

30,145,523

 

 

$

-

 

 

$

30,145,523

 

 

 

 

 

 

 

 

 

 

 Redeemable Non-Controlling Interests

$

9,621,159

 

 

$

(486,180

)

 

$

9,134,979

 

 

 

 

 

 

 

 

 

 

 Accumulated Deficit

$

(5,419,624

)

 

$

16,468

 

 

$

(5,403,156

)

 

 

 

 

 

 

 

 

 

 Stockholders' Equity

$

13,654,034

 

 

$

16,468

 

 

$

13,670,502

 

 Non-Controlling Interest

$

-

 

 

$

469,712

 

 

$

469,712

 

 Total Equity

$

13,654,034

 

 

$

486,180

 

 

$

14,140,214

 

 Total Liabilities and Equity

$

53,420,716

 

 

$

-

 

 

$

53,420,716

 


 

 

As of March 31,

 

 

 

 

 

As of March 31,

 

 

2022

 

 

 

 

 

2022

 

 

As Reported

 

 

Adjustment

 

 

As Corrected

 

 Total Assets

$

66,570,918

 

 

$

-

 

 

$

66,570,918

 

 

 

 

 

 

 

 

 

 

 Liabilities and Equity

 

 

 

 

 

 

 

 

 Total liabilities

$

42,997,873

 

 

$

-

 

 

$

42,997,873

 

 

 

 

 

 

 

 

 

 

 Redeemable Non-Controlling Interests

$

10,746,509

 

 

$

(486,180

)

 

$

10,260,329

 

 

 

 

 

 

 

 

 

 

 Accumulated Deficit

$

(6,000,158

)

 

$

21,526

 

 

$

(5,978,632

)