Restatement of Previously Filed Financial Statements

6 Months Ended

Jun. 30, 2024

Accounting Changes and Error Corrections [Abstract]

Restatement of Previously Filed Financial Statements

2.A – Restatement of Previously Filed Financial Statements

Restatement of Previously Filed Financial Statements

As previously disclosed on Form 8-K filed on September 3, 2024, the Trust received a letter from the NYSE American regarding a lack of compliance with listing requirements. Specifically, since the Trust had incurred losses in two out of the last three years, it is required to have total equity of greater than $2 million. 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 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 re-stated accordingly. The restatement increases the Trust’s Total Equity on its consolidated Balance Sheet to approximately $10 million which is above the threshold required for NYSE American compliance as of June 30, 2024.

The Trust believe that the restatement is not material from a quantitative perspective, and it does not believe that the restatement is material from a qualitative standpoint other than for the second quarter of 2024 as a result of the non-compliance with the NYSE listing requirements. Accordingly, the Trust believes it is appropriate to file an amended 10-Q for the quarter ended June 30, 2024. Management concluded that for the rest of the periods, the error was qualitatively and quantitatively immaterial and corrected within this 10-Q/A.

The only changes to the financial Statements contained in the original Form 10-Q are:

- Reclassification of the Preferred Shares on the Consolidated Balance Sheet to Equity

- Elimination of the accrual of undeclared dividends for the Preferred Shares consistent with treatment of the Preferred Shares as Equity (previously accrued as an increase to the carrying value of the Preferred Shares on the Balance Sheet)

- An Updated Consolidated Statement of Changes in Shareholders Equity to include the Preferred Shares

- Removal of dividends from the supplemental disclosure contained in the Consolidated Statement of Cash Flows

The following tables present the effect of the restatement on the Company’s previously reported Condensed Consolidated Balance Sheet as of June 30, 2024 and the effect of the revision on the Condensed Consolidated Balance Sheet as of December 31, 2023. The amounts as previously reported were derived from the Company’s Original Form 10-Q.

	June 30, 2024			Adjustment			June 30, 2024
	As reported						As restated
Condensed Balance Sheets
TOTAL ASSETS	$	49,789,487					$	49,789,487
LIABILITIES AND EQUITY
TOTAL LIABILITIES		39,834,459					$	39,834,459
Series A 7.75% Cumulative Redeemable Perpetual Preferred Stock		9,632,402			(9,632,402	)	$	-
Equity:
Series A 7.75% Cumulative Redeemable Perpetual Preferred Stock		-			8,489,952			8,489,952
Common Shares		3,389						3,389
Additional paid-in capital		47,661,776						47,661,776
Accumulated deficit		(47,342,539	)		1,142,450			(46,200,089	)
Total Equity		322,626						9,955,028
TOTAL LIABILITIES AND EQUITY	$	49,789,487					$	49,789,487

	December 31, 2023			Adjustment			December 31, 2023
	As reported						As corrected
Condensed Balance Sheets
TOTAL ASSETS	$	70,210,240					$	70,210,240
LIABILITIES AND EQUITY
TOTAL LIABILITIES		39,440,196					$	39,440,196
Series A 7.75% Cumulative Redeemable Perpetual Preferred Stock		9,305,988			(9,305,988	)	$	-
Equity:
Series A 7.75% Cumulative Redeemable Perpetual Preferred Stock		-			8,489,952			8,489,952
Common Shares		3,389						3,389
Additional paid-in capital		47,254,625						47,254,625
Accumulated deficit		(25,793,958	)		816,036			(24,977,922	)
Total Equity		21,464,056						30,770,044
TOTAL LIABILITIES AND EQUITY	$	70,210,240					$	70,210,240

The following tables present the effect of the revision on the Company’s previously reported Condensed Changes in Shareholder’s Equity as of December 31, 2022, March 31, 2023, June 30, 2023 and March 31, 2024. The amounts as previously reported were derived from the Company’s Original Form 10-Q.

	December 31, 2022			Adjustment		December 31, 2022
	As reported					As corrected
Equity:
Series A 7.75% Cumulative Redeemable Perpetual Preferred Stock		-			8,489,952		8,489,952
Common Shares		3,389					3,389
Additional paid-in capital		46,369,311					46,369,311
Accumulated deficit		(10,775,616	)		163,207		(10,612,409	)
Total Equity		35,597,084					44,250,243

	March 31, 2023			Adjustment		March 31, 2023
	As reported					As corrected
Equity:
Series A 7.75% Cumulative Redeemable Perpetual Preferred Stock		-			8,489,952		8,489,952
Common Shares		3,389					3,389
Additional paid-in capital		46,596,320					46,596,320
Accumulated deficit		(11,277,869	)		326,414		(10,951,455	)
Total Equity		35,321,840					44,138,206

	June 30, 2023			Adjustment		June 30, 2023
	As reported					As corrected
Equity:
Series A 7.75% Cumulative Redeemable Perpetual Preferred Stock		-			8,489,952		8,489,952
Common Shares		3,389					3,389
Additional paid-in capital		46,821,677					46,821,677
Accumulated deficit		(13,632,515	)		489,621		(13,142,894	)
Total Equity		33,192,551					42,172,124

	March 31, 2024			Adjustment		March 31, 2024
	As reported					As corrected
Equity:
Series A 7.75% Cumulative Redeemable Perpetual Preferred Stock		-			8,489,952		8,489,952
Common Shares		3,389					3,389
Additional paid-in capital		47,471,100					47,471,100
Accumulated deficit		(28,034,163	)		979,243		(27,054,920	)
Total Equity		19,440,326					28,909,521