Supplemental Financial Statement Information

9 Months Ended

Sep. 30, 2021

Supplemental Financial Statement Information

Supplemental Financial Statement Information

9.    Supplemental Financial Statement Information

Other Assets

INDUS's other assets are comprised of the following:

	Sep. 30, 2021		Dec. 31, 2020
Deposits on building and land acquisitions	$	6,455	$	365
Deferred leasing costs, net		7,173		5,352
Straight-line rents		6,876		6,700
Prepaid expenses		4,622		2,618
Intangible assets, net		4,475		2,126
Accounts receivable (primarily leases)		1,477		254
Deferred financing costs related to revolving lines of credit		988		162
Prepaid development costs		966		798
Furniture, fixtures and equipment, net		701		181
Right-of-use assets		622		707
Proceeds from sales of real estate assets held in escrow		592		1,993
Registration statement costs		532		—
Mortgage escrows		366		558
Interest rate swap asset		156		—
Other		418		323
Total other assets	$	36,419	$	22,137

Accounts Payable and Accrued Liabilities

INDUS's accounts payable and accrued liabilities are comprised of the following:

	Sep. 30, 2021		Dec. 31, 2020
Accrued construction costs and retainage	$	7,004	$	94
Accrued lease commissions		1,040		233
Trade payables		873		1,093
Accrued salaries, wages and other compensation		746		1,027
Accrued interest payable		619		580
Other		773		642
Total accounts payable and accrued liabilities	$	11,055	$	3,669

Other Liabilities

INDUS's other liabilities are comprised of the following:

	Sep. 30, 2021		Dec. 31, 2020
Interest rate swap liabilities	$	5,335	$	8,766
Deferred compensation plan		4,741		4,335
Intangible liability, net		3,102		695
Prepaid rent from tenants		1,392		1,345
Security deposits of tenants		893		710
Lease liabilities		656		739
Contingent value rights liability		—		656
Other		321		321
Total other liabilities	$	16,440	$	17,567

Supplemental Cash Flow Information

Accounts payable and accrued liabilities related to additions to real estate assets increased by $6,910 and $553 in the 2021 nine month period and 2020 nine month period, respectively.

Interest payments were as follows:

For the Three Months Ended				For the Nine Months Ended
Sep. 30, 2021		Sep. 30, 2020		Sep. 30, 2021		Sep. 30, 2020
$	1,727	$	1,752	$	5,117	$	5,198

Capitalized interest related to real estate assets was as follows:

For the Three Months Ended				For the Nine Months Ended
Sep. 30, 2021		Sep. 30, 2020		Sep. 30, 2021		Sep. 30, 2020
$	470	$	57	$	815	$	90

Income Taxes

As discussed above (see Note 1), INDUS intends to elect to be taxed as a REIT for the taxable year ending December 31, 2021. To qualify as a REIT, INDUS is required (among other things) to distribute at least 90% of its REIT taxable income to its stockholders and meet various other organization and operating requirements. Provided the Company qualifies for taxation as a REIT, it generally will not be subject to federal income taxes if it distributes 100% of its taxable income for each year to its stockholders. However, any taxable income from a taxable REIT subsidiary will be subject to federal, state and local income taxes. INDUS has elected taxable REIT subsidiary (“TRS”) status for one of its consolidated subsidiaries which provides services that would otherwise be considered impermissible for a REIT. If INDUS fails to qualify as a REIT in any taxable year, and it is unable to avail itself of certain savings provisions set forth in the Code, all of its taxable income will be subject to regular federal corporate income tax, and it may not be able to qualify as a REIT for four subsequent taxable years. Additionally, even if INDUS qualifies for taxation as a REIT, it may be subject to certain state and local taxes on its income and property and to federal income taxes and excise taxes on its undistributed taxable income. INDUS may also be subject to a corporate income tax on any gains recognized during a five-year period following the REIT conversion that are attributable to built-in gains with respect to assets that were owned on January 1, 2021.

In connection with the election to be taxable as a REIT for the taxable year ending December 31, 2021, INDUS reassessed its deferred tax assets and deferred tax liabilities during the fourth quarter of fiscal 2020, which resulted in de-recognizing all of its deferred tax assets and deferred tax liabilities prior to December 31, 2020. Accordingly, the only income tax provision reflected in the Company’s results of operations for the 2021 third quarter and 2021 nine month period is related to its TRS. INDUS’s income tax benefit was $500 in the 2020 nine month period reflecting an effective tax rate of 23.4%. The effective tax benefit rate for the 2020 nine month period reflected the federal statutory income tax rate of 21% adjusted for effects of permanent differences and state income taxes.

INDUS’s federal income tax returns for fiscal 2018, fiscal 2019, fiscal 2020 and December 2020 are open to examination by the Internal Revenue Service.