Company: LANDO
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001495240-25-000021
Chunk: 88

Company: GLADSTONE LAND Corp
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 88
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 for the six months ended June 30, 2024, have been reclassified to conform to the current period’s presentation.  These reclassifications had no impact on previously-reported stockholders’ equity, net income, or net change in cash and cash equivalents.Crop InventoryThrough certain of our wholly-owned subsidiaries and via a management agreement with a third-party operator, we currently manage a 2,409-acre farm located in Kern County, California, which includes 2,293 acres of bearing almond and pistachio orchards.  Through June 30, 2025, we have incurred approximately $4.3 million in growing costs, primarily related to pollination, fertilization, pesticide application, irrigation, and labor.  These costs have been capitalized as crop inventory and are included in “Other assets, net” on the accompanying Condensed Consolidated Balance Sheets at the lower of cost or net realizable value.  As the related crops are harvested and sold later in 2025 and throughout 2026, these costs will be charged to cost of products sold.  In addition, as the crops are harvested and sold, we anticipate incurring additional costs (including harvesting costs, crop insurance, and post-harvest handling fees), which will also be expensed to the cost of products sold.Income taxesWe have operated and intend to continue to operate in a manner that will allow us to qualify as a REIT under Sections 856-860 of the Internal Revenue Code of 1986, as amended (the “Code”).  As a REIT, we generally are not subject to federal corporate income taxes on amounts that we distribute to our stockholders (except income from any foreclosure property), provided that, on an annual basis, we distribute at least 90% of our REIT taxable income (excluding net capital gains) to our stockholders and meet certain other conditions.  As such, in general, as long as we qualify as a REIT, no provision for federal income taxes will be necessary, except for taxes on undistributed REIT taxable income, taxes from foreclosure property, and taxes on income generated by a TRS (such as Land Advisers), if any.  During the six months ended June 30, 2025, we began directly operating one property (consisting of three farms) that qualifies as foreclosure property under the Code and thus is subject to corporate income taxes on any income.We account for any income taxes in accordance with the provisions of Accounting Standards Codification (“ASC”) 740,