SCOTTSDALE, Ariz., Nov. 14, 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 third quarter and nine months ending September 30, 2016.
Amended lease agreement with tenant at the company's Medical Marijuana Business Park in Tempe, Arizona to significantly expand facilities and increase the base rent for the property; and entered into another lease amendment with a second tenant at the property which will contribute to increased rental revenue at no additional cost to the company
Amended lease agreement with tenant at the company's Chino Valley Cultivation Facility to increase the monthly rent for the property by more than 30%
Expanded Board of Directors with addition of experienced financial executive, David G. Honaman
Established independent Audit Committee
Third Quarter 2016 Financial Results
Revenue increased 18% to $481,000, compared to $408,000 for the third quarter of 2015.
Operating expenses, including $137,000 in non-cash stock-based compensation and settlement expense, decreased 50% to $351,000 from $697,000 for the third quarter of 2015.
Net income was $74,000, or $0.00 per basic and diluted share, compared to a net loss of $(347,000), or $(0.02) per basic and diluted share, for the third quarter of 2015.
As of September 30, 2016, the Company had cash and cash equivalents of $610,000 compared to $1.3 million as of December 31, 2015.
Year-to-Date 2016 Financial Results
Revenue increased 40% to $1.3 million, compared to $923,000 for the first nine months of 2015.
Operating expenses decreased 23% to $1.5 million from $1.9 million for the first nine months of 2015. Operating expenses included $161,000 in legal fees related to the resolution of legacy matters and $505,000 in non-cash stock-based compensation and settlement expense.
Net loss was $(336,000), or $(0.02) per basic and diluted share, compared to $(1.1) million, or $(0.06) per basic and diluted share, for the first nine months of 2015.
Net cash used in operating activities was $118,000 for the first nine months of 2016 as compared to $455,000 for comparable 2015 period.
Bryan McLaren, Chief Executive Officer of Zoned Properties, stated, "Our work to methodically and steadily grow our business by further developing and expanding our real estate footprint continued in the third quarter as we amended existing lease agreements with current tenants and continued our efforts to develop our real estate assets. Our approach to property development and tenant selection enables us to systematically grow our business in concert with the growth of our tenants' business and the overall industry. The properties governed by these amended lease agreements are expected to incrementally contribute to revenues beginning in the fourth quarter of 2016 and into 2017."
"At Zoned Properties, we are committed to corporate governance practices that support high standards of transparency and accountability for our shareholders and the growth and benefit of our business," concluded Mr. McLaren. "In support of this commitment, we established an independent Audit Committee to be led by our newly appointed independent director, Mr. David G. Honaman. We recognize that ensuring the integrity of our financial operations and reporting, as well as director independence, is critical to our success as we execute our strategic initiatives to grow our business."
The Company will hold a conference call at 4:30 p.m. Eastern (U.S.) time on November 14, 2016. To participate in the live conference call, please dial 1-877-830-2627 five to 10 minutes prior to the scheduled conference call time. International callers should dial 1-785-424-1230. When prompted, reference Conference ID: Zoned.
A replay will be available until November 28, 2016. To access the replay, dial 1-877-481-4010 or 1-919-882-2331. When prompted, enter Conference Passcode 10096.
The call will also be available live by webcast over the Internet and accessible at http://www.investorcalendar.com/IC/CEPage.asp?ID=175327.
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.
Now check out Zoned Properties' marijuana stock profile here.