Company: LANDO
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001495240-25-000021
Chunk: 22

Company: GLADSTONE LAND Corp
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 22
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” (“ASC 740”), using the asset and liability method.  Under this method, deferred tax assets and liabilities are recognized based on differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases (including for operating loss, capital loss, and tax credit carryforwards) and are calculated using the enacted tax rates and laws expected to be in effect when such amounts are realized or settled.  In addition, we will establish valuation allowances for tax benefits when we believe it is more-likely-than-not (defined as a likelihood of more than 50%) that such assets will not be realized.Pretax loss from foreclosure property during each of the three and six months ended June 30, 2025, was approximately $1.6 million.  We did not have any federal or state income tax expense (current or deferred) during either of the three or six months ended June 30, 2025.Our deferred income taxes relate to the net tax effects of federal and state net operating losses, as well as temporary differences arising between the carrying amounts of assets and liabilities of our foreclosure property.  As of June 30, 2025, we had a full valuation allowance resulting in a net deferred tax asset of $0.  Management has assessed the future realizability of the tax benefits below and determined that such assets are not likely to be realized after considering all sources of income.  The following table summarizes our deferred income tax assets and liabilities as of June 30, 2025 (dollars in thousands):June 30, 2025December 31, 2024Deferred income tax assets, net:Fixed asset depreciation$250 $— Net operating loss435 — Total Gross deferred income tax assets685 — Less: Valuation allowance(685)— Total Deferred income tax assets, net$— $— We did not have any deferred income tax liabilities as of either June 30, 2025, or December 31, 2024.As of June 30, 2025, our foreclosure property had an indefinite-lived net operating loss carryforward of $1.7 million for federal income tax purposes.  State net operating loss carryforwards have varying expirations.  The following table illustrates the difference between the effective tax rate of the foreclosure property’s expense (benefit) for income taxes and the federal statutory rate (dollars in thousands):

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ActualExpected Expense(Benefit) at FederalStatutory Rate(1)Items as