Zoned Properties Announces Second Quarter Results

SCOTTSDALE, Ariz., Aug. 15, 2016 /PRNewswire/ -- Zoned Properties, Inc. (OTCQX: ZDPY), a strategic real estate development firm whose primary mission is to identify, develop, and lease sophisticated, safe, and sustainable properties in emerging industries, including the licensed marijuana industry, today announced its financial results for the second quarter and six months ending June 30, 2016.

Recent Achievements

• Investment of over $350,000 in capital for project expansion at the Chino Valley property to increase additional leased space by approximately 10,000 square feet. Management expects an increase in rental revenue once the power upgrade has been completed.
• Signed letter of intent for lease of 15,000 square feet of space at Marijuana Business Park located in Parachute, Colorado. Management will continue efforts to satisfy contingencies included in the letter of intent for the prospective lease, including the completion of a Vested Property Rights Agreement with the Town of Parachute.
• Commencement of improvements for the expansion of existing tenant's medical marijuana cultivation facility at the Tempe Medical Marijuana Business Park.
• Initiated development of a Corporate Social Responsibility ("CSR") Program in order to directly influence the evolution of the licensed marijuana industry.

Second Quarter 2016 Financial Results

• Revenue increased 40% to $404,000, compared to $288,000 for the second quarter of 2015.
• Operating expenses decreased 39% to $520,000 from $847,000 for the second quarter of 2015. Operating expenses included $98,679 in legal fees, related to the resolution of legacy matters, and $20,025 in non-cash stock-based compensation. As legacy matters continue to resolve, management expects legal fees to decline for the remainder of 2016.
• Net loss was $(173,000), or $(0.01) per basic and diluted share, compared to $(614,000), or $(0.03) per basic and diluted share, for the second quarter of 2015.
• As of June 30, 2016, the Company had cash and cash equivalents of $817,000 compared to $1.3 million as of December 31, 2015.

Year-to-Date 2016 Financial Results

• Revenue increased 57% to $810,000, compared to $515,000 for the first six months of 2015.
• Operating expenses decreased 8% to $1.1 million from $1.2 million for the first six months of 2015. Operating expenses included $131,488 in legal fees, related to the resolution of legacy matters, and $205,575 in non-cash stock-based compensation.
• Net loss was $(410,000), or $(0.02) per basic and diluted share, compared to $(798,000), or $(0.04) per basic and diluted share, for the second quarter of 2015.
• Net cash used in operating activities was $13,160 for the first six months of 2016 as compared to $205,890 for comparable 2015 period.

Bryan McLaren, Chief Executive Officer of Zoned Properties, stated, "We continue to make progress in our ongoing efforts to expand and develop our portfolio of properties, increasing both rental revenues and property values. Our team has worked hard over the past few years to create a development strategy that includes critical contingencies in order to minimize risk and increase security in long-term assets and revenues. A cornerstone of this process is in how we structure our contracts, specifically our letters of intent. Each piece of the puzzle must be secured in order to move a project forward, giving Zoned Properties control over acquisition strategy and process. By leveraging our Triple-Set (SSS) design and development model, we expect our projects to continue producing long-term value for our portfolio as exhibited by our financial growth in 2016."

"Our letter of intent to lease space at the Tempe Medical Marijuana Business Park expired effective June 18, 2016 as each of the critical contingencies had not been satisfied, and we are now working to secure new tenants that fit the Medical Marijuana Business Park concept," added Mr. McLaren. "A highlight of our business strategy is to select projects in locations with high demand for operational space, providing the project with a long list of prospective tenants from which to choose. Because of the high demand and low supply of adequately zoned and permitted space, we can rely upon these high standards and critical contingencies for any tenant selected. This includes rigorous financial, ethical and community standards in order to create a long-term, mutually beneficial relationship. We will continue to review tenant prospects based upon this strategy, which supports our vision for long-term value."

Supplemental Information Regarding Current Portfolio of Rental Properties

About Zoned Properties, Inc. (ZDPY):

Zoned Properties is a strategic real estate development firm whose primary mission is to identify, develop, and lease 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

SOURCE Zoned Properties, Inc.