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Zoned Properties, Inc. (ZDPY), a real estate development and i nvestment company specializing in properties for the regulated cannabis industry, has released its unaudited consolidated financial results for the first quarter of 2023. The company faced headwinds during the quarter, reporting a net loss of $309,648. Despite the challenging operating environment, Zoned Properties generated $688,024 in revenue during the same period.
Net Loss in Q1 2023
Zoned Properties experienced a net loss of $309,648 for the first quarter of 2023. This figure contrasts with a relatively smaller net loss of $25,696 during the same period in the previous year. The increase in net loss can be attributed to a combination of factors including operating expenses and various other income and expense items that affected the company's bottom line.
Q1 2023 Revenue Reaches $688,024
Amid the operational challenges, Zoned Properties managed to achieve total revenues of $688,024 for the first quarter of 2023. This revenue figure reflects a decline compared to the first quarter of 2022 when the company reported total revenues of $938,701. The decrease in revenue can be attributed to a variety of factors, including changes in rental revenues and real estate service revenues.
Balance Sheet and Equity
As of March 31, 2023, Zoned Properties' consolidated balance sheet displayed total assets amounting to $14,739,463. The company's assets encompassed various components such as cash, accounts receivable, rental properties, and investments in joint ventures and equity securities.
On the liabilities side, the company's consolidated balance sheet showed total liabilities of $9,327,551. Zoned Properties had a convertible note payable of $2,000,000, along with other liabilities such as notes payable, accounts payable, and lease liabilities.
The company's stockholders' equity, as of March 31, 2023, amounted to $5,411,912. This equity figure was composed of preferred and common stock, additional paid-in capital, and the accumulated deficit.
Operating Activities and Cash Flows
Zoned Properties' cash flow from operating activities in the first quarter of 2023 amounted to $3,589. This figure reflects the company's ability to manage its day-to-day operations amid the challenges it faced during the period.
The company's investing activities primarily included the acquisition of rental properties and related improvements, as well as an increase in escrow deposits. These activities led to a net cash usage in investing activities of $1,071,456 during the first quarter of 2023.
In terms of financing activities, Zoned Properties reported a net cash usage of $20,258, primarily due to repayments of notes payable.
Zoned Properties, Inc. navigated a complex operating landscape during the first quarter of 2023, reporting a net loss of $309,648. Despite the net loss, the company managed to generate revenue of $688,024 during the same period. The company's financial performance reflects the dynamic nature of the real estate market, particularly in the regulated cannabis industry. As Zoned Properties continues to adapt to changing conditions, investors and industry observers will closely monitor its strategies and outcomes in the quarters ahead.