Zoned Properties Reports Fiscal Year 2015 Financial Results

Mar 09, 2016, 08:00 ET from Zoned Properties, Inc.

SCOTTSDALE, Ariz., March 9, 2016 /PRNewswire/ -- Zoned Properties, Inc. (OTCQX: ZDPY), a strategic real estate development firm whose primary mission is to identify, develop, and manage sophisticated, safe, and sustainable properties in emerging industries, including the licensed medical marijuana industry, today announced its financial results for the three and 12 months ended December 31, 2015.

Recent Achievements

  • Received unanimous approval from the Town of Chino Valley, Arizona to develop entirety of company's 58-acre property development
  • Amended commercial lease agreement to triple-net (NNN) leased space at Chino Valley Cultivation Facility
  • Signed letter of intent to purchase a 1.5-acre parcel of land in Parachute, Colorado for development and commercial leasing
  • Initiated trading of common shares, under symbol "ZDPY," on the OTCQX marketplace

Fourth Quarter 2015 Financial Results

  • Revenue increased 93% to $472,229, compared to $245,220 in the year ago quarter.
  • Operating expenses decreased 32% to $642,216 from $942,814 in the year ago quarter.
  • Net loss for the fourth quarter of 2015 was ($266,860), or ($0.01) per basic and diluted share, compared to ($754,466), or ($0.04) per basic and diluted share, in the year ago quarter.

Full Year 2015 Financial Results

  • Revenue was $1.4 million for the year ended December 31, 2015, up 198% from $468,000 for the year ended December 31, 2014. The Company began recognizing revenue related to the leasing of its properties in March 2014.
  • Total operating expenses decreased 57% to $2.5 million, down from $5.9 million a year ago. The decline is primarily attributable to lower compensation and benefit expenses in 2015.
  • Net loss of ($1.4) million, or ($0.08) per basic and diluted share, compared to ($5.7) million, or ($0.72) per basic and diluted share, in 2014.
  • As of December 31, 2015, the Company had cash and cash equivalents of $1.3 million compared to $1.1 million as of December 31, 2014.

Bryan McLaren, Chief Executive Officer of Zoned Properties, stated, "We hit the ground running in 2016, moving forward with the development of our Chino Valley property and taking the first steps toward expanding into the opportunity-rich Colorado market. Through the use of our Triple-Set (SSS) program, an internally developed design model for the development of marijuana facilities, we have created a successful, repeatable approach to collaborating with municipalities to help write zoning regulations and set new standards that support property development in a mutually beneficial manner."

Mr. McLaren added, "We believe our recent achievements are a harbinger of future financial success and look forward to communicating with investors as we make additional progress toward expanding and developing our portfolio and advance the monetization of our properties. We believe we are uniquely positioned in a rapidly growing space, poised to benefit from exponential growth while minimizing risk. Our relationships with the municipalities in the communities in which we serve have never been stronger, and our strategy of working in close collaboration with municipal governments is paying dividends. Moving forward, we believe we have the partnerships, access to capital, construction relationships, and potential lessees to make our business a success. We couldn't be more excited about the future." 

About Zoned Properties, Inc. (OTCQX: ZDPY):

Zoned Properties, Inc. is a strategic real estate development firm whose primary mission is to identify, develop, and manage sophisticated, safe, and sustainable properties in emerging industries. The Company acquires commercial properties that face unique zoning challenges and identifies solutions that can potentially have a major impact on the cash flow and value generated. Zoned Properties targets commercial properties that can be acquired and potentially re-zoned for specific purposes. Zoned Properties does not grow, harvest, sell or distribute cannabis or any substances regulated under United States law such as the Controlled Substances Act.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts included in this press release are forward-looking statements. In some cases, forward-looking statements can be identified by words such as "believe," "expect," "anticipate," "plan," "potential," "continue" or similar expressions. Such forward-looking statements include risks and uncertainties, and there are important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors, risks and uncertainties are discussed in the Company's filings with the Securities and Exchange Commission. Investors should not place any undue reliance on forward-looking statements since they involve known and unknown, uncertainties and other factors which are, in some cases, beyond the Company's control which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects the Company's current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to operations, results of operations, growth strategy and liquidity. The Company assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

Tables follow

 


 ZONED PROPERTIES, INC. AND SUBSIDIARIES 

 CONSOLIDATED BALANCE SHEETS 









 December 31, 


 December 31, 



2015


2014






 ASSETS 





 Cash 

$             1,281,464


$             1,066,377


 Rental properties, net

7,224,593


8,499,705


 Deferred rent receivable 

8,909


-


 Deferred rent receivable - related parties 

367,013


28,027


 Real estate tax escrow 

46,072


39,122


 Prepaid expenses and other current assets 

105,684


175,313


 Property and equipment, net 

46,488


45,940


 Security deposits 

8,158


7,024






TOTAL ASSETS 

$             9,088,381


$             9,861,508






 LIABILITIES AND STOCKHOLDERS' EQUITY 









 LIABILITIES: 





 Mortgage payable 

$             2,100,000


$             2,100,000


 Convertible note payable 

500,000


500,000


 Convertible note payable - related party 

500,000


500,000


 Accounts payable  

36,797


27,835


 Accrued expenses 

92,044


57,837


 Accrued expenses - related parties 

56,542


47,959


 Security deposits payable 

62,440


18,100







 Total Liabilities 

3,347,823


3,251,731






 Commitments and Contingencies









 STOCKHOLDERS' EQUITY: 





Preferred stock, $.001 par value, 5,000,000 shares authorized; 2,000,000 shares issued and outstanding at December 31, 2015 and 2014 ($1.00 per share liquidation preference)   





2,000


2,000


Common stock: $.001 par value, 100,000,000 shares authorized; 17,080,850 and 18,676,304 issued and outstanding at December 31, 2015 and 2014, respectively





17,081


18,676


Additional paid-in capital

19,412,954


18,912,548


Subscription receivable

-


(4,000)


Accumulated deficit

(13,691,477)


(12,319,447)






 Total Stockholders' Equity 

5,740,558


6,609,777






 Total Liabilities and Stockholders' Equity 

$             9,088,381


$             9,861,508






 

 ZONED PROPERTIES, INC. AND SUBSIDIARIES 

 CONSOLIDATED STATEMENTS OF OPERATIONS 


















 For the Years Ended 


 For the Quarter Ended 




 December 31, 


 December 31, 




2015


2014


2015


2014








(Unaudited)


(Unaudited)

 REVENUES: 










 Rental revenues 


$         414,785


$         327,387


$           117,090


$          104,693


 Rental revenues - related parties 


980,509


140,527


355,139


140,527












 Total Revenues 


1,395,294


467,914


472,229


245,220











 OPERATING EXPENSES: 










 Compensation and benefits 


455,037


3,918,440


156,626


44,631


 Professional fees 


1,333,435


932,510


322,427


66,290


 General and administrative expenses 


274,797


148,157


76,282


53,371


 Depreciation and amortization 


150,368


99,822


40,308


25,570


 Property operating expenses 


120,094


75,069


16,078


20,861


 Real estate taxes 


87,117


63,447


30,495


35,841


 Consulting fees - related parties 


53,512


35,417


-


21,250


 Impairment loss on building - related party 


-


675,000


-


675,000


 Settlement expense 


67,500


-


-


-












 Total Operating Expenses 


2,541,860


5,947,862


642,216


942,814











 LOSS FROM OPERATIONS 


(1,146,566)


(5,479,948)


(169,987)


(697,594)











 OTHER INCOME (EXPENSES): 









    Interest expenses 


(193,448)


(143,789)


(48,123)


(48,123)

    Interest expenses - related parties 


(35,000)


(157,649)


(8,750)


(8,749)

    Other income 


2,545


41,020


-


-

    Interest income 


439


-


-


-












 Total Other Expenses, net 


(225,464)


(260,418)


(56,873)


(56,872)











 LOSS BEFORE INCOME TAXES 


(1,372,030)


(5,740,366)


(226,860)


(754,466)











 PROVISION FOR INCOME TAXES 


-


-


-


-











 NET LOSS 


$     (1,372,030)


$     (5,740,366)


$         (226,860)


$         (754,466)











 NET LOSS PER COMMON SHARE: 










 Basic and Diluted 


$              (0.08)


$              (0.72)


$               (0.01)


$               (0.04)











 WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: 










 Basic and Diluted 


18,134,328


7,931,701


17,075,700


18,550,761

 

SOURCE Zoned Properties, Inc.