Company: LANDO
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001495240-25-000021
Chunk: 32

Company: GLADSTONE LAND Corp
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 32
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.  Under the program, WWD paid for surplus surface water to be delivered to individual landowners’ properties with district-approved groundwater recharge facilities, also known as “water banks.”  The landowner was allowed to keep 50% of the net amount of groundwater credits generated under the program (after allowing for certain leave-behind and evaporative losses), and the remaining 50% was used to recharge the aquifer and retained by WWD.  Delivery of water under this program was subject to surplus water availability at WWD’s discretion.  WWD terminated the program for the 2024 water year effective March 5, 2024.  As a result of the program, we recognized 2,660 acre-feet of water credits, which represents 50% of the total net water credits generated and confirmed by WWD under the program.  As of June 30, 2025, these water credits were recognized as a long-term water asset and had an aggregate carrying value of approximately $753,000.  In addition, as a result of being granted these water credits in exchange for transferring and storing this surplus water on behalf of WWD, we recognized approximately $27,000 and 

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$453,000 of non-cash revenue during the three and six months ended June 30, 2024, respectively, which represents the estimated fair value of the water credits obtained during the periods.Other Groundwater CreditsSince 2023, we have also entered into various other agreements with certain third parties (including local water districts and private individuals) to either buy water directly, buy a portion of other water districts’ surface water allocations in future years in which allocations are granted, or to store surface water on others’ behalf in one of our groundwater recharge facilities in exchange for a portion of the net groundwater credits produced and recognized by the respective water district.  Through June 30, 2025, we have obtained 4,337 acre-feet of water credits as a result of these agreements, which were recognized as a long-term water asset with an aggregate carrying value of approximately $853,000.Total Long-term Water AssetsAs of June 30, 2025, we owned a total of 55,306 acre-feet of long-term water assets, and our investments in these assets had an aggregate carrying value of approximately $37.1 million and are included within Investments in water assets on our Condensed Consolidated Balance Sheets.In addition, we have invested approximately $1.4 million to construct groundwater recharge