Power REIT Receives Notice Resolving NYSE American Listing Standards Deficiency
Power REIT (NYSE-AMEX: PW and PW.PRA) announced that it has received a notice from NYSE American rescinding its previous Deficiency Letter dated September 3, 2024. The Trust had been notified of non-compliance with listing standards due to insufficient stockholders' equity. After a review of its accounting treatment for Preferred Shares, Power REIT determined these should be classified as Equity instead of Mezzanine Equity.
This restatement increases the Trust's Total Equity to approximately $10 million, above the NYSE American compliance threshold. Power REIT filed a Form 10-Q/A on September 24, 2024, restating its equity balance, and a Form 8-K describing the filing. The accounting change is non-cash in nature and does not affect revenue, net income, or income per share. As a result, NYSE American rescinded the Deficiency Letter on September 25, 2024, confirming Power REIT's compliance with equity requirements.
Power REIT (NYSE-AMEX: PW e PW.PRA) ha annunciato di aver ricevuto un avviso dalla NYSE American che annulla la sua precedente Lettera di Deficienza datata 3 settembre 2024. Il Trust era stato informato della non conformità agli standard di quotazione a causa di un insufficiente patrimonio netto degli azionisti. Dopo una revisione del suo trattamento contabile delle Azioni Preferenziali, Power REIT ha determinato che queste dovrebbero essere classificate come Patrimonio Netto anziché come Patrimonio Mezzanino.
Questa rettifica aumenta il Patrimonio Totale del Trust a circa 10 milioni di dollari, superando la soglia di conformità della NYSE American. Power REIT ha presentato un modulo 10-Q/A il 24 settembre 2024, rettificando il suo saldo patrimoniale, e un modulo 8-K che descrive la presentazione. Il cambiamento contabile è di natura non monetaria e non influisce su ricavi, reddito netto o utile per azione. Di conseguenza, la NYSE American ha annullato la Lettera di Deficienza il 25 settembre 2024, confermando la conformità di Power REIT ai requisiti patrimoniali.
Power REIT (NYSE-AMEX: PW y PW.PRA) anunció que ha recibido un aviso de NYSE American que anula su anterior Carta de Deficiencia fechada el 3 de septiembre de 2024. El Trust había sido notificado de incumplimiento con los estándares de cotización debido a un patrimonio neto de accionistas insuficiente. Tras una revisión de su tratamiento contable de las Acciones Preferenciales, Power REIT determinó que estas deben clasificarse como Patrimonio en lugar de Patrimonio Mezzanine.
Esta rectificación aumenta el Patrimonio Total del Trust a aproximadamente 10 millones de dólares, superando el umbral de cumplimiento de NYSE American. Power REIT presentó un formulario 10-Q/A el 24 de septiembre de 2024, rectificando su saldo de patrimonio, y un formulario 8-K que describe la presentación. El cambio contable es de naturaleza no monetaria y no afecta los ingresos, el ingreso neto o el ingreso por acción. Como resultado, NYSE American anuló la Carta de Deficiencia el 25 de septiembre de 2024, confirmando el cumplimiento de Power REIT con los requisitos de patrimonio.
Power REIT (NYSE-AMEX: PW 및 PW.PRA)는 NYSE American으로부터 2024년 9월 3일자 이전 결함 통지를 철회한다는 통지를 받았다고 발표했습니다. 신탁은 주주 자본금 부족으로 인해 상장 기준 불이행 통지를 받았습니다. 우선주에 대한 회계 처리를 검토한 결과, Power REIT는 이를 메자닌 자본이 아닌 자본으로 분류해야 한다고 판단했습니다.
이 재무 재표화는 신탁의 총 자본을 약 1000만 달러로 증가시켜 NYSE American의 준수 기준을 초과하게 했습니다. Power REIT는 2024년 9월 24일에 자본 잔액을 재표시하는 10-Q/A 양식을 제출하고, 제출 내용을 설명하는 8-K 양식을 제출했습니다. 회계 변화는 비현금성으로, 수익, 순이익 또는 주당 수익에 영향을 미치지 않습니다. 그 결과, NYSE American은 2024년 9월 25일에 결함 통지를 철회하여 Power REIT의 자본 요구사항 준수를 확인했습니다.
Power REIT (NYSE-AMEX: PW et PW.PRA) a annoncé qu'il avait reçu un avis de NYSE American annulant sa précédente Lettre de Déficience datant du 3 septembre 2024. La fiducie avait été informée d'un non-respect des normes de cotation en raison d'un capital des actionnaires insuffisant. Après un examen de son traitement comptable des Actions Préférentielles, Power REIT a déterminé que celles-ci devaient être classées comme Capitaux Propres plutôt que comme Capitaux Mezzanines.
Cette retraitement augmente le Capital Total de la fiducie à environ 10 millions de dollars, dépassant le seuil de conformité de la NYSE American. Power REIT a déposé un formulaire 10-Q/A le 24 septembre 2024, révisant son solde de capitaux propres, ainsi qu'un formulaire 8-K décrivant le dépôt. Le changement comptable est de nature non monétaire et n'affecte pas les revenus, le résultat net ni le bénéfice par action. En conséquence, la NYSE American a annulé la Lettre de Déficience le 25 septembre 2024, confirmant la conformité de Power REIT aux exigences de capitaux.
Power REIT (NYSE-AMEX: PW und PW.PRA) gab bekannt, dass es eine Mitteilung von NYSE American erhalten hat, die dessen vorheriges Mängelanschreiben vom 3. September 2024 zurücknimmt. Der Trust wurde über die Nichterfüllung der Zulassungsstandards aufgrund unzureichenden Eigenkapitals informiert. Nach einer Überprüfung der Bilanzierung seiner Vorzugsaktien stellte Power REIT fest, dass diese als Eigenkapital und nicht als mezzanine Eigenkapital eingestuft werden sollten.
Diese Neufeststellung erhöht das Gesamteigenkapital des Trusts auf etwa 10 Millionen Dollar, was über der Compliance-Schwelle der NYSE American liegt. Power REIT reichte am 24. September 2024 ein Formular 10-Q/A ein, in dem das Eigenkapital neu bewertet wurde, sowie ein Formular 8-K, das die Einreichung beschreibt. Die buchhalterische Änderung ist nicht monetär und beeinflusst nicht die Einnahmen, den Nettogewinn oder den Gewinn pro Aktie. Infolgedessen hob NYSE American am 25. September 2024 das Mängelanschreiben auf und bestätigte, dass Power REIT die Eigenkapitalanforderungen erfüllt.
- Reclassification of Preferred Shares as Equity increases Total Equity to $10 million
- Compliance with NYSE American listing requirements restored
- No impact on revenue, net income, or income per share from accounting change
- Previous incorrect classification of Preferred Shares on balance sheet
- Necessity to restate financial statements
Insights
This news is positive for Power REIT, as it resolves a significant listing compliance issue with the NYSE American. The reclassification of Preferred Shares from Mezzanine Equity to Equity has increased the Trust's Total Equity to approximately
Key points:
- The accounting change is non-cash and doesn't affect revenue, income, or FFO
- Restated equity balance of
$10 million as of June 30, 2024 - NYSE American has rescinded the Deficiency Letter
This resolution removes a major regulatory overhang and should improve investor confidence. However, it's important to note that the need for restatement may raise questions about the Trust's financial reporting processes. Investors should monitor future filings for any additional restatements or accounting adjustments.
Old Bethpage, New York, Sept. 26, 2024 (GLOBE NEWSWIRE) -- Power REIT (NYSE-AMEX: PW and PW.PRA) (“Power REIT” or the “Trust”), today announced that it received a notice from the NYSE American LLC rescinding its letter dated September 3, 2024 (the “Deficiency Letter”). As previously disclosed, the Deficiency Letter stated that the Trust was not in compliance with the continued listing standards of the Exchange because the Trust was below compliance with Section 1003(a)(i) of the NYSE American Company Guide (the “Company Guide”), requiring stockholders’ equity of
As part of evaluating a plan to comply with the NYSE American listing requirements, the Trust embarked on analysis of the accounting treatment for its Preferred Shares which historically were classified as Mezzanine Equity. Based on its review, the Trust determined that the Preferred Shares should be treated as Equity. The Trust consulted with its Auditors and also retained a qualified third-party consultant to assist with its analysis of the accounting treatment for the Preferred Shares. Ultimately, the Trust concluded that it has incorrectly classified the Preferred Shares on its balance sheet and that they should be treated as Equity (not mezzanine equity) and the financial statements should be restated accordingly. The restatement increases the Trust’s Total Equity on its consolidated Balance Sheet to approximately
On September 24, 2024, Power REIT filed a Form 10-Q/A with the SEC for the quarter ended June 30, 2024, which provides a restated equity balance on its Consolidated Balance Sheet and an Explanatory Note. In addition, on September 24, 2024, Power REIT filed a Form 8-K describing the filing of the Form 10-Q/A.
On September 25, 2024, the Trust received a notice from the NYSE American rescinding the Deficiency Letter as the Trust is compliant with equity requirements based on the restated equity level on the financial statements in the Form 10-Q/A.
ABOUT POWER REIT
Power REIT, with a focus on the “Triple Bottom Line” and a commitment to people, planet and profit, is a specialized real estate investment trust (REIT) that owns sustainable real estate related to infrastructure assets including properties for Controlled Environment Agriculture, Renewable Energy and Transportation.
Additional information about Power REIT can be found on its website: www.pwreit.com
Cautionary Statement About Forward-Looking Statements
This document includes forward-looking statements within the meaning of the U.S. securities laws. Forward-looking statements are those that predict or describe future events or trends and that do not relate solely to historical matters. You can generally identify forward-looking statements as statements containing the words “believe,” “expect,” “will,” “anticipate,” “intend,” “estimate,” “project,” “plan,” “assume”, “seek” or other similar expressions, or negatives of those expressions, although not all forward-looking statements contain these identifying words. All statements contained in this document regarding our future strategy, future operations, future prospects, the future of our industries and results that might be obtained by pursuing management’s current or future plans and objectives are forward-looking statements. You should not place undue reliance on any forward-looking statements because the matters they describe are subject to known and unknown risks, uncertainties and other unpredictable factors, many of which are beyond our control. Important factors that could cause actual results to differ materially from current expectations include, among others, the Company’s ability to continue to remain in compliance with the NYSE American listing standards requirements and the other factors discussed in the Company’s filings with the SEC including the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. Our forward-looking statements are based on the information currently available to us and speak only as of the date of the filing of this document. Over time, our actual results, performance, financial condition or achievements may differ from the anticipated results, performance, financial condition or achievements that are expressed or implied by our forward-looking statements, and such differences may be significant and materially adverse to our security holders.
CONTACT:
| David H. Lesser, Chairman & CEO | |
| dlesser@pwreit.com | |
| 212-750-0371 | |
| 301 Winding Road Old Bethpage, NY 11804 | |
| www.pwreit.com |
FAQ
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