1-SA/A 1 hca_1saa.htm FORM 1-SA/A hca_1saa.htm

 

  

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 1-SA/A

(Amendment No. 1)

 

SEMI-ANNUAL REPORT PURSUANT TO REGULATION A

 

For the fiscal semi-annual period ended June 30, 2022

 

HC GOVERNMENT REALTY TRUST, INC.

(Exact name of issuer as specified in its charter)

 

 

Maryland

 

81-1867397

(State or other jurisdiction of incorporation or organization)

 

(I.R.S. Employer Identification No.)

 

 

 

390 S. Liberty Street, Suite 100 Winston-Salem, NC

 

 27101

(Address of principal executive offices)

 

(Zip Code)

 

(336) 477-2535

(Issuer’s telephone number, including area code) 

 

 

 

 

EXPLANATORY NOTE

 

Amendment to Form 1-SA

 

HC Government Realty Trust, Inc., a Maryland corporation (the “Company” or “our”), is filing this Semiannual Report on Form 1-SA/A (Amendment No. 1) (this “Amendment”) to amend our Semiannual Report on Form 1-SA for the semiannual period ended June 30, 2022, originally filed with the Securities and Exchange Commission on September 29, 2022 (the “Original Filing”), for the purpose of correcting scriveners’ errors in the Company’s Consolidated Statements of Cash Flows for the six months ended June 30, 2022 and 2021 that were included in the Original Filing.

 

Items Amended in this Amendment

 

This Amendment presents modifications to the following item in the Original Filing:

 

 

·

 Item 3, Financial Statements – HC Government Realty Trust, Inc. Consolidated Statements of Cash Flows for the six months ended June 30, 2022 and 2021.

 

Except as described above, this Amendment does not amend, update or change any other items or disclosures in the Original Filing.

 

 

2

 

 

HC Government Realty Trust, Inc.

Consolidated Statements of Cash Flows

For the Six Months Ended June 30, 2022 and 2021 (unaudited)

 

 

 

For the six months ended June 30,

 

 

 

2022

 

 

2021

 

Cash flows from operating activities:

 

 

 

 

 

 

Net loss

 

 $ (3,726,366 )

 

 $ (3,386,965 )

Adjustments to reconcile net loss to net cash (used in) provided by operating activities:

 

 

 

 

 

 

 

 

Depreciation

 

 

 2,276,824

 

 

 

 2,019,820

 

Amortization of acquired lease-up costs

 

 

 309,814

 

 

 

 287,267

 

Amortization of in-place leases

 

 

 510,553

 

 

 

 412,230

 

Amortization of above/below-market leases, net

 

 

 96,321

 

 

 

 119,540

 

Amortization of debt issuance costs

 

 

 243,897

 

 

 

 464,263

 

Amortization of deferred offering costs

 

 

 211,011

 

 

 

 195,478

 

Equity-based compensation

 

 

 437,390

 

 

 

 306,051

 

Loss on involuntary conversion

 

 

 29,443

 

 

 

 -

 

Net change in:

 

 

 

 

 

 

 

 

Rent and other tenant receivables, net

 

 

 66,549

 

 

 

 (1,515,427 )

Prepaid expenses and other assets

 

 

 (115,532 )

 

 

 87,902

 

Deposits on properties under contract

 

 

 (1,292,071 )

 

 

 -

 

Accrued interest payable

 

 

 21,774

 

 

 

 6,625

 

Accounts payable

 

 

 (240,636 )

 

 

 (582,873 )

Accrued expenses and other liabilities

 

 

 246,280

 

 

 

 403,010

 

Deferred revenue

 

 

 9,660

 

 

 

 1,625,730

 

Net cash (used in) provided by operating activities

 

 

 (915,089 )

 

 

 442,651

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Real estate acquisitions

 

 

 -

 

 

 

 (3,492,951 )

Development property additions

 

 

 (142,180 )

 

 

 (3,153,381 )

Capital and tenant improvements on operating properties

 

 

 (382,746 )

 

 

 (590,246 )

Insurance proceeds from loss on involuntary conversion

 

 

 17,312

 

 

 

 -

 

Net cash used in investing activities

 

 

 (507,614 )

 

 

 (7,236,578 )

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Dividends paid

 

 

 (1,976,882 )

 

 

 (1,828,267 )

Borrowings under revolving credit facility

 

 

 4,000,000

 

 

 

 7,350,000

 

Mortgage principal payments

 

 

 (119,353 )

 

 

 (112,045 )

Net cash provided from financing activities

 

 

 1,903,765

 

 

 

 5,409,688

 

 

 

 

 

 

 

 

 

 

Net increase (decrease) in Cash and cash equivalents and Restricted cash

 

 

 481,062

 

 

 

 (1,384,239 )

Cash and cash equivalents and Restricted cash, beginning of period

 

 

 3,112,016

 

 

 

 5,098,747

 

Cash and cash equivalents and Restricted cash, end of period

 

 $ 3,593,078

 

 

 $ 3,714,508

 

 

 

 

 

 

 

 

 

 

Supplemental cash flow information:

 

 

 

 

 

 

 

 

Cash paid for interest

 

 $ 651,183

 

 

 $ 525,252

 

Cash paid for income taxes

 

 

 -

 

 

 

 -

 

Non cash investing and financing activities:

 

 

 

 

 

 

 

 

Reimbursement of offering costs

 

 $ 49,378

 

 

 $ 49,378

 

Recognition of operating lease right-of-use assets and related lease liabilities in connection with the adoption of ASC 842

 

 

 1,259,809

 

 

 

 -

 

Recognition of operating lease right-of-use asset and related lease liability entered into during the period

 

 

 92,829

 

 

 

 -

 

  

 

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SIGNATURES

 

Pursuant to the requirements of Regulation A, the issuer has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

HC GOVERNMENT REALTY TRUST, INC.

 

 

 

 

 

 

By:

/s/ Steven A. Hale II

 

 

 

Steven A. Hale II 

 

Date: October 5, 2022

 

Chairman and Chief Executive Officer

 

 

Pursuant to the requirements of Regulation A, this report has been signed by the following persons in the capacities and on the dates indicated.

 

Name

 

Title

 

Date

 

 

 

 

 

/s/ Steven A. Hale II

 

Chairman and Chief Executive Officer

 

October 5, 2022

Steven A. Hale II

 

(principal executive officer)

 

 

 

 

 

 

 

/s/ Jacqlyn Piscetelli

 

Chief Financial Officer

 

October 5, 2022

Jacqlyn Piscetelli

 

(principal financial officer and principal accounting officer)

 

 

 

 

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