Company: LANDO
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001495240-25-000028
Chunk: 25

Company: GLADSTONE LAND Corp
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 1
Chunk 25
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 indicative of the results that may be expected for other interim periods or for the full fiscal year.Use of EstimatesThe preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect our reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and our reported amounts of revenues and expenses during the reporting periods.  We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making certain judgments.  Actual results may materially differ from these estimates.

8

ReclassificationsCertain line items on the accompanying Condensed Consolidated Balance Sheet as of December 31, 2024 and the Condensed Consolidated Statement of Cash Flows for the nine months ended September 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 under 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 September 30, 2025, we have incurred approximately $7.8 million in growing costs, primarily related to irrigation, pest management, fertilization, and labor.  These costs have been capitalized as crop inventory and are included in “Other assets, net” on the accompanying Condensed Consolidated Balance Sheets, stated at the lower of cost or net realizable value.  As the related crops are harvested and sold later in 2025 and throughout 2026, the associated costs will be charged to cost of products sold.  We expect to incur additional costs related to harvesting and post-harvest handling, which will likewise be expensed to cost of products sold as incurred.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