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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended
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Sep. 30, 2024
Accounting Policies [Abstract] |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES All adjustments that are of a normal recurring nature and are in the opinion of management necessary for a fair statement of the results for the periods reported have been included in the accompanying condensed consolidated financial statements. The condensed consolidated balance sheet of the Company as of December 31, 2023 has been derived from the audited consolidated balance sheet of the Company as of that date. Certain information and note disclosures normally included in the Company’s annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K (“Annual Report”) filed with the Securities and Exchange Commission (“SEC”) on March 7, 2024. Please see the Company’s Annual Report for significant accounting policies as the significant accounting policies are consistent with those described in the Annual Report. Reclassification A prior year statement of operations account has been reclassified to conform with the current year presentation. Management fee income was reclassified from other income (expense) to total income in the accompanying unaudited condensed consolidated statements of operations. The reclassification did not affect net loss in the prior year's consolidated statements of operations. Immaterial Error Correction During the three and nine months ended September 30, 2024, the Company corrected its computation of net (loss) earnings per share attributable to noncontrolling interest used in calculating its (loss) earnings per share, as disclosed in Note 13, from a cumulative earnings approach to a discrete earnings approach, wherein the net income or loss attributable to noncontrolling interests in Operating Partnership is computed for each quarter separately from each year-to-date period. This change was made because each Class C Common Share and Class C OP Unit have the same participation in earnings (loss) and therefore there is no difference between basic and diluted earnings (loss) per share. Due to such change, the net loss attributable to noncontrolling interest in Operating Partnership for the nine months ended September 30, 2023 increased by $64,802 from $1,535,452 to $1,600,254 resulting in a decrease by the same amount in the net loss attributable to common stockholders from $(8,084,383) to $(8,019,581). The effect of this change decreased the Company’s basic loss per share attributable to common stockholders from $(1.07) per share to $(1.06) per share and by the same amount for diluted loss per share attributable to common stockholders and noncontrolling interests. See Note 13 for further details of the earnings (loss) per share attributable to common stockholders and noncontrolling interests. This immaterial error correction did not impact the net loss (income) attributable to noncontrolling interest in Operating Partnership presented on the statements of operations and equity for the three and nine month periods, since those amounts are calculated using the cumulative earnings approach, which is the year-to-date period less the prior quarter’s year-to-date net loss (income) attributable to noncontrolling interest in Operating Partnership. The statements of comprehensive income (loss) for the three and nine months ended September 30, 2023 have been corrected to subtract, rather than add, the amortization of unrealized holding gain on interest rate swap from net loss. As a result, the comprehensive (loss) attributable to Modiv Industrial, Inc. for the three months ended September 30, 2023 increased from $(5,238,990) to $(5,745,174) and for the nine months ended September 30, 2023 comprehensive loss attributable to Modiv Industrial, Inc. increased from $(4,436,516) to $(5,949,508). This correction is limited to the statement of comprehensive loss and did not have any impact on the Company’s balance sheet, statements of operations, cash flows or equity. Consequently, this correction did not impact income from continuing operations, net loss, or per share amounts and it did not impact any key performance metrics including funds from operations, adjusted funds from operations, leverage and debt covenants. The Company's Annual Report on Form 10-K for the year ended December 31, 2023 was properly presented. Management discovered these presentation errors during the preparation of the Company's quarterly financial statements for the three months ended March 31, 2024 and related reconciliations of the 2023 amounts.

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