Recent developments include a 35% increase in sales reported in August 2025 and the appointment of a new director to the board in April 2026, reflecting active management and strategic initiatives.

• Zoned Properties reported a 35 percent increase in sales as of August 14, 2025, indicating growth in its business activities [N2].
• The company strengthened its board by appointing a new director as reported on April 2, 2026, potentially enhancing governance and strategic oversight [N1].

Zoned Properties benefits from its technology-driven approach and specialized expertise in navigating the complex regulatory environment of the cannabis industry, enabling it to identify and acquire value-added properties with long-term lease agreements. The company's diversified portfolio across multiple states with 100% occupancy and long weighted average lease terms supports stable cash flows. Its integrated real estate services and brokerage operations complement its property investment activities, potentially enhancing revenue streams. Recent sales growth and board strengthening indicate active management and strategic initiatives. The management buyout agreement may facilitate operational restructuring and capital return to shareholders.

The company faces significant risks related to the regulatory complexity and lengthy timelines for zoning and permitting in the cannabis industry, which can delay or derail property acquisitions and leasing. Tenant operational challenges and defaults have occurred, requiring lease amendments and collections efforts. Zoned Properties operates in a capital-constrained environment, with a net loss and negative earnings per share reported for 2025. The planned management buyout and asset liquidation reflect challenges in sustaining operations as a public company in this sector. Concentration of assets in a few tenants and properties exposes the company to financial and operational risks. Environmental liabilities and competition for suitable properties may also adversely affect financial condition.

Zoned Properties' moat derives from its specialized focus on commercial real estate within the highly regulated cannabis industry, where zoning, permitting, and regulatory compliance present significant barriers to entry. The company's proprietary property technology and standardized investment model, combined with its national ecosystem of real estate services—including brokerage and advisory practices—provide integrated solutions that address unique zoning and development challenges. Its established relationships with local authorities and expertise in navigating complex cannabis approvals enhance its ability to secure and manage properties with long-term absolute-net leases to licensed cannabis tenants. This specialization and regulatory know-how create a competitive advantage in a niche market with high entry barriers.

• Regulatory and Zoning Risks: The company's business depends on obtaining complex zoning and permitting approvals for cannabis-related properties, which can be lengthy, uncertain, and may result in failed acquisitions or leases.
• Tenant Credit and Operational Risks: Operational challenges and defaults by tenants can lead to impaired rent collections, lease renegotiations, and potential impairment charges on properties.
• Financial and Liquidity Risks: Zoned Properties reported net losses and negative EPS, with limited liquidity ratios disclosed. The company is pursuing a management buyout and asset liquidation, indicating financial constraints.
• Concentration Risks: A significant portion of the company's assets and leases are concentrated in a few tenants and properties, increasing exposure to tenant defaults and market fluctuations.
• Related Party Transaction Risks: The management buyout involves company executives as buyers, which may lead to perceived or actual conflicts of interest affecting transaction terms and shareholder interests.

• Zoned Properties, Inc. is a technology-driven property investment company focused on acquiring value-added commercial real estate within the regulated cannabis industry in the United States, headquartered in Scottsdale, Arizona.
• The company operates two segments: (1) Property Investment Portfolio, involving operations, leasing, and management of commercial properties, and (2) Real Estate Services, including advisory, brokerage, and technology services related to commercial properties.
• Zoned Properties targets commercial properties with unique zoning or development challenges related to regulated cannabis operations and secures long-term absolute-net leases with licensed cannabis tenants.
• The company does not engage in growing, harvesting, selling, or distributing cannabis or any substances regulated under U.S. law.
• As of April 1, 2026, Zoned Properties owns and leases seven properties to licensed cannabis tenants in Arizona, Illinois, and Michigan, with 100% occupancy and a weighted average lease term over 10 years.
• The leased properties include four cannabis retail dispensaries, two cultivation and processing facilities, and one land property under development for a cannabis retail dispensary.
• The company has a network of wholly owned subsidiaries involved in property ownership, brokerage, advisory, and data platform services, including entities organized in Arizona, Illinois, Michigan, Florida, and other states.
• Zoned Properties has entered into a Management Buyout Asset Purchase Agreement (MBO APA) on January 15, 2026, to sell all of its business and assets to a buyer group including its CEO and other executives, subject to stockholder approval and financing.
• The purchase price for the assets under the MBO APA is $7 million less assumed indebtedness, and closing is expected by the end of 2026 if approved.
• The company plans to liquidate 100% of its assets and operations and return net cash to shareholders through a special dividend, followed by a reverse merger or other transaction involving the public company.
• Financial snapshot as of December 31, 2025, shows a net loss of $2,854,415 and basic and diluted EPS of -$0.24.
• Revenue was $692,326 for the six months ended June 30, 2024, and cash and equivalents were $3,275,775 as of June 30, 2023.
• The company faces challenges related to zoning, permitting, and development timelines in the regulated cannabis industry, which can be lengthy and complex.
• Zoned Properties maintains a network of experts in real estate fields to support tenants and clients, requiring due diligence on prospective tenants.
• The company has experienced operational challenges with some tenants but has amended leases and received payments to address defaults.
• Recent news includes a 35% sales increase reported in August 2025 and strengthening of the board with a new director in April 2026.
• The company has six employees as of December 31, 2025, and outsources various operational tasks to external partners to maximize efficiency.
• Zoned Properties is strictly a non-plant touching organization, focusing solely on real estate investment and services in the cannabis sector.