Note 18 - Segment Reporting

6 Months Ended

Jun. 30, 2025

Segment Reporting [Abstract]

Segment Reporting

Note 18 – Segment Reporting

As discussed above, the Company determined that it is no longer the primary beneficiary of the Eagles Sub-OP as the Company no longer has a controlling financial interest in the Eagles Sub-OP. As such, the Company deconsolidated the Eagles Sub-OP on April 1, 2025. The deconsolidation of the Eagles Sub-OP does not qualify for discontinued operations as this is not a strategic shift in the Company’s operations and the entire portfolio of the Eagles Sub-OP does not meet held for sale criteria under ASC 205-20-45-1E.

The Company operates as a single reporting segment that derives revenues primarily from commissions and management and other income. The accounting policies are consistent with those described above in the 2024 Form 10-K. The Company’s chief operating decision maker (“CODM”) is the Chief Executive Officer.

Prior the deconsolidation, the Company derived revenues primarily from rental income. Net operating income (“NOI”) was the measure used by the Company’s CODM to assess the operating segment’s performance. The Company defined NOI as rental income less property operating expenses, including real estate taxes. The Company also excluded the impact of straight-line rent revenue, net amortization of above and below market leases, depreciation, interest, impairments and gains or losses of real estate assets and other significant infrequent items that created volatility in the Company’s results and made it difficult to determine the results of the Company’s core ongoing business. NOI is not a measure of operating income or cash flows from operating activities as measured by GAAP and is not indicative of cash available to fund cash needs. As a result, NOI should not be considered as an alternative to cash flows or as a measure of liquidity. Not all companies calculate NOI in the same manner. The Company considered NOI to be an appropriate supplemental measure to net income because it provided additional information to allow management, investors and the Company’s current and potential creditors to evaluate and compare the Company’s core operating results.

The table below compares NOI of the Company’s reportable segment for the three and six months ended June 30, 2025 and 2024 and the reconciliation of segment NOI to net income (loss):

	Three Months Ended June 30,						Six Months Ended June 30,
	2025			2024			2025			2024
Rental income (1)	$	—		$	8,942		$	10,070		$	18,165
Property operating expenses
Property taxes		—			993			1,041			2,039
Contract maintenance		—			513			933			1,250
Utilities		—			397			370			881
Repairs		—			372			229			604
Other segment items (2)		—			459			532			966
Total property operating expenses		—			2,734			3,105			5,740
Segment net operating income		—			6,208			6,965			12,425
Reconciliation of segment net operating income to net loss
Commissions		459			824			1,166			1,326
Management and other income		382			52			439			110
Straight-line rent revenue		—			394			(143	)		746
Amortization of above and below market lease, net		—			(81	)		(85	)		(145	)
Cost of services		(307	)		(644	)		(883	)		(1,065	)
Depreciation and amortization		(6	)		(3,790	)		(3,586	)		(7,609	)
Impairment of real estate assets		—			(331	)		(43	)		(441	)
Bad debt (expense) recovery		(37	)		(68	)		34			(210	)
General and administrative		(2,169	)		(3,022	)		(5,748	)		(6,502	)
Net interest and other income		—			251			165			468
Derivative fair value adjustment		—			78			(582	)		967
Net gain (loss) on fair value change on debt held under the fair value option		—			210			(240	)		2,553
Interest expense		(19	)		(4,556	)		(4,784	)		(8,889	)
Loss on extinguishment of debt		—			—			—			(7	)
Other expense		—			(26	)		(1	)		(32	)
Gain on deconsolidation of Eagles Sub-OP		56,875			—			56,875			—
Loss from investment in Eagles Sub-OP		(9,280	)		—			(9,280	)		—
Income tax expense		(1,188	)		—			(1,188	)		(134	)
Net income (loss)	$	44,710		$	(4,501	)	$	39,081		$	(6,439	)

(1)Excludes straight-line revenue and net amortization of above and below market leases.

(2)Other segment items include expenses relating to insurance, administrative expenses, payroll and related items and management expenses.