Revision of Previously Issued Consolidated Financial Statements

6 Months Ended

Jun. 30, 2024

Revision of Previously Issued Consolidated Financial Statements

Revision of Previously Issued Consolidated Financial Statements

Note 4 – Revision of Previously Issued Consolidated Financial Statements

The Company identified an error in its previously issued interim financial statements as of and for the three months ended March 31, 2024 that was determined individually, and in the aggregate, quantitatively and qualitatively immaterial.  As such, the Company has revised its interim financial statements for the three months ended March 31, 2024, as illustrated in this Note 4, referred to as the "Revision”.  No other periods were impacted by this immaterial error.

In conjunction with the Recapitalization Transactions during February 2024, as discussed above, the Company recorded an equity method investment in TPHGreenwich.  During the three months ended March 31, 2024, the Company previously recorded losses from TPHGreenwich in excess of our investment in the joint venture totaling $792,000 in error.

Given the non-pro rata distribution provision in the JV Operating Agreement in favor of the Investor, the HLBV method should have been applied to our investment in TPHGreenwich. As a result, losses from the joint venture in excess of our investment basis should not have been recognized. The previously recorded losses in excess of our basis in TPHGreenwhich have been revised, resulting in an investment in the joint venture of zero as of March 31, 2024, after the Revision, using the HLBV method. Our investment in the joint venture remains at zero as of June 30, 2024.

The impact of the Revision on the Company’s consolidated financial statements as of and for the three months ended March 31, 2024 are reflected below (dollars in thousands):

	As Previously		Revision
	Reported		Impact		As Revised
Consolidated Balance Sheet
Losses in excess of investment in unconsolidated joint venture	$	792	$	(792)	$	—
Total liabilities	$	3,505	$	(792)	$	2,713
Accumulated deficit	$	(87,844)	$	792	$	(87,052)
Total stockholders' equity	$	2,658	$	792	$	3,450
Total liabilities and stockholders' equity	$	6,163	$	—	$	6,163
Consolidated Statement of Operations and Comprehensive Income
Equity in net loss from unconsolidated joint venture	$	(6,754)	$	792	$	(5,962)
Income before taxes	$	8,147	$	792	$	8,939
Net income attributable to common stockholders	$	8,061	$	792	$	8,853
Comprehensive income attributable to common stockholders	$	8,181	$	792	$	8,973
Income per share - basic and diluted	$	0.15	$	0.02	$	0.17
Consolidated Statement of Cash Flows
Net Income attributable to common stockholders	$	8,061	$	792	$	8,853
Equity in net loss from unconsolidated joint ventures	$	6,754	$	(792)	$	5,962
Net cash used in operating activities	$	(4,454)	$	—	$	(4,454)