☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

(Address, including zip code, and telephone number, including area code, of Company’s principal executive offices)

(Name, address, including zip code, and telephone number, including area code, of agent for service)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒Yes☐ No

Indicate by check mark whether the registrant has submitted electronically ~~and posted on its corporate Web site, if any,~~ every Interactive Data File required to be submitted ~~and posted~~ pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit ~~and post~~ such files). ☒Yes☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

The number of shares outstanding of the registrant’s common stock, par value $0.01 per share, as of October ~~31, 2017,~~21, 2022 was ~~7,619,469.~~11,105,533.

Certain information presented in this report ~~contains~~may contain “forward-looking statements” within the meaning of the federal securities laws including ~~but not limited to,~~ the Private Securities Litigation Reform Act of ~~1995 (the “PSLRA”).~~1995. Forward looking statements include statements concerning our plans, objectives, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans or intentions relating to acquisitions and other information that is not historical information. In some cases, forward looking statements can be identified by terminology such as “believes,” “plans,” “intends,” “expects,” “estimates,” “may,” “will,” “should,” ~~“anticipates”~~ or ~~“intends,”~~“anticipates” or the negative of such terms or other comparable terminology, or by discussions of strategy. All forward-looking statements made by the Company involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of the Company, which may cause the Company’s actual results to be materially different from those expressed or implied by such statements. We may also make additional forward looking statements from time to time. All such subsequent forward-looking statements, whether written or oral, by us or on our behalf, are also expressly qualified by these cautionary statements. All forward-looking statements, including without limitation, management’s examination of historical operating trends and estimates of future earnings, are based upon our current expectations and various assumptions. Our expectations, beliefs and projections are expressed in good faith and we believe there is a reasonable basis for them, but there can be no assurance that management’s expectations, beliefs and projections will result or be achieved.

All forward looking statements apply only as of the date made. WeExcept as required by law, we undertake no obligation to publicly update or revise forward looking statements which may be made to reflect events or circumstances after the date made or to reflect the occurrence of unanticipated events.

There are a number of risks and uncertainties, including the impact of the COVID-19 pandemic, that could cause our actual results to differ materially from the forward-looking statements contained in or contemplated by this report. Any forward-looking statements should be considered in light of the risks referenced in “Item 1A. Risk Factors” included in our most recent ~~registration statement~~annual report on Form ~~10.~~10-K and in other subsequent filings with the Securities and Exchange Commission (the “SEC”). Such factors include, but are not limited to:

CONSOLIDATED STATEMENTS OF OPERATIONS ~~(Successor Basis)~~and COMPREHENSIVE INCOME

CONSOLIDATED STATEMENT OF ~~OPERATIONS (Predecessor Basis)~~STOCKHOLDERS' EQUITY

CONSOLIDATED STATEMENT OF ~~COMPREHENSIVE INCOME (LOSS) (Successor Basis)~~STOCKHOLDERS' EQUITY

Global Self Storage, Inc. ~~a Maryland corporation~~ (the “Company,” “we,” “our,” or “us”), is a self-administered and self-managed Maryland real estate investment trust (“REIT”) ~~focused on the ownership, operation, acquisition, development,~~that owns, operates, manages, acquires, develops and ~~redevelopment of~~redevelops self storage ~~facilities~~properties (“stores” or “properties”) in the United States. ~~The Company stores are located in the Northeast, Mid-Atlantic and Mid-West regions~~As of the United States. The Company was formerly registered under the Investment Company Act of 1940, as amended (the “1940 Act”) as a non-diversified, closed end management investment company. The Securities and Exchange Commission’s (“SEC”) order approving the Company’s application to deregister from the 1940 Act was granted on January 19, 2016. Accordingly, effective January 19, 2016, the Company changed its name to Global Self Storage, Inc. from Self Storage Group, Inc., changed its SEC registration to a reporting company under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (from an investment company under the 1940 Act), and listed its common stock on the Nasdaq Capital Market (“NASDAQ”) under the symbol “SELF.”

The Company has elected to be treated as a REIT under the Internal Revenue Code of 1986, as amended (the “IRC”). To the extent the Company continues to qualify as a REIT, it will not be subject to tax, with certain limited exceptions, on the taxable income that is distributed to its stockholders.

~~The Company invests in self storage facilities by acquiring stores~~September 30, 2022, through its wholly owned ~~subsidiaries. At September 30, 2017,~~subsidiaries, the Company owned and/or managed 13 self-storage properties in Connecticut, Illinois, Indiana, New York, Ohio, Pennsylvania, South Carolina, and ~~operated 11 stores.~~Oklahoma. The Company operates primarily in one segment: rental operations.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

Upon deregistration as an investment company, the ~~Company's~~Company’s status changed to an operating company from an investment company since it no longer met the assessment of an investment company in accordance with U.S. generally accepted accounting principles (“GAAP”) under the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 (“ASC 946”). The Company discontinued applying the guidance in ASC 946 and began to account for the change in status prospectively by accounting for its investments in accordance with other ~~U.S. generally accepted accounting principles (“GAAP”)~~GAAP topics as of the date of the change in status.

The Company’s financial statements for the period subsequent to the deregistration are prepared on a consolidated basis to include the financial position, results of operations, and cash flows of the Company and its wholly-owned subsidiaries, rather than by the investment company fair valuation approach. This change in status and the concomitant accounting policies affect the comparability of the financial statements for directly presenting corresponding items for 2017 and 2016. As such, the consolidated statements of operations and cash flows have been presented on the Predecessor Basis of accounting as an investment company from January 1, 2016 through January 18, 2016, and on the current basis of accounting as an operating company from January 19, 2016 through September 30, 2017.

The accompanying unaudited consolidated financial statements of the Company are presented on the accrual basis of accounting in accordance with GAAP for interim financial information, and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they may not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (including normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the ~~three and~~ nine months ended September 30, ~~2017~~2022 are not necessarily indicative of the results that may be expected for the year ending December 31, ~~2017.~~2022. The consolidated balance sheet as of December 31, ~~2016~~2021 has been derived from the Company’s audited financial statements as of that date, but does not include all of the information and footnotes required by GAAP for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, ~~2016.~~2021.

Reclassifications

~~Accounts Payable~~Certain amounts from the prior year have been reclassified to conform to current year presentation. These reclassifications had no effect on the reported financial position, net income, or cash flows.

Cash, Cash Equivalents, and ~~Accrued Expenses~~Restricted Cash

~~Accounts payable~~The Company’s cash is deposited with financial institutions located throughout the United States and ~~accrued expenses generally~~at times may exceed federally insured limits. Cash equivalents may consist of ~~property tax accruals, unearned rental income, and trade payables.~~

~~Cash and Cash Equivalents~~

~~Cash and cash equivalents consist of highly liquid investments,~~money market fund shares and may include, ~~money market fund shares,~~among other things, highly liquid investments purchased with an original maturity of three months or less. ~~The carrying amount reported on the balance sheet for cash and cash equivalents approximates fair value.~~

~~Restricted Cash~~

Restricted cash is comprised of escrowed funds deposited with a bank relating to capital expenditures.

The carrying amount reported on the balance sheet for cash, cash equivalents, and restricted cash approximates fair value.

The following table provides a reconciliation of cash, cash equivalents, and restricted cash in our unaudited consolidated balance sheets to the total amount shown in our consolidated statements of cash flows:


	September 30, 2022		December 31, 2021
Cash and cash equivalents	$	6,341,502	$	2,899,701
Restricted cash		132,104		163,998
Total cash, cash equivalents, and restricted cash as shown in our unaudited consolidated statements of cash flows	$	6,473,606	$	3,063,699

Income Taxes

The Company has elected to be treated as a REIT under the ~~IRC.~~Internal Revenue Code of 1986, as amended (the “Code”). In order to maintain its qualification as a REIT, among other things, the Company is required to distribute at least ~~90%~~90% of its REIT taxable income to its stockholders and meet certain tests regarding the nature of its income and assets. As a REIT, the Company is not subject to federal income tax with respect to that portion of its income which meets certain criteria and is distributed annually to stockholders. The Company plans to continue to operate so that it meets the requirements for taxation as a REIT. Many of these requirements, however, are highly technical and complex. If the Company were to fail to meet these requirements, it would be subject to federal income tax. In management's opinion, the requirements to maintain these elections are being fulfilled. The Company is subject to certain state and local taxes.

The Company has elected to treat its corporate subsidiary, SSG TRS LLC, as a taxable REIT subsidiary (“TRS”). In general, the Company’s TRS may perform additional services for tenants and may engage in any real estate or non-real estate related business. A TRS is subject to federal corporate income tax.

The Company recognizes the tax benefits of uncertain tax positions only where the position is “more likely than not” to be sustained assuming examination by tax authorities. The Company has reviewed its tax positions and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on federal, state, and local income tax returns for open tax years ~~(2014~~(2017 – ~~2016)~~2021), or isare expected to be taken in the Company’s ~~2017~~2022 tax returns.

Marketable Equity Securities

~~Investments in Securities~~

Investments in equity securities that have readily determinable fair values ~~are accounted for as available-for-sale. Available-for-sale securities~~ are measured at fair value. Gains or losses from changes in the fair value of ~~available-for-sale~~equity securities are recorded in ~~accumulated other comprehensive~~net income, until the investment is sold or otherwise ~~disposed of, or until the investment is determined to be other-than-temporarily impaired, at which time the cumulative gain or loss previously reported in equity is included in income.~~disposed. The specific identification method is used to determine the realized gain or loss on investments sold or otherwise disposed.

Fair value is determined using a valuation hierarchy generally by reference to an active trading market, using quoted closing or bid prices. Judgment is used to ascertain if a formerly active market has become inactive and in determining fair values when markets have become inactive.

~~Prior to January 19, 2016, gains and losses from the changes in fair value of investment securities were recorded in the Statement of Operations.~~

Real Estate Assets

Real estate assets are carried at ~~the~~their appreciated value as of January 19, 2016, the effective date of the Company’s change in status from an investment company to an operating company, less accumulated depreciation from that date. Purchases subsequent to the effective date of the change in status are carried at cost, less accumulated depreciation. Direct and allowable internal costs associated with the development, construction, renovation, and improvement of real estate assets are capitalized. Property taxes and other costs associated with development incurred during a construction period are capitalized. A construction period begins when expenditures for a real estate asset have been made and activities that are necessary to prepare the asset for its intended use are in progress. A construction period ends when an asset is substantially complete and ready for its intended use.

~~We allocate~~

Acquisition costs are accounted for in accordance with Accounting Standard Update ("ASU") No. 2017-01 Business Combinations (Topic 805): Clarifying the ~~net acquisition cost~~Definition of a Business, which was adopted on January 1, 2018 and are generally capitalized for acquisitions that qualify as asset acquisitions. When properties are acquired, ~~operating self storage properties~~the purchase price is allocated to the underlying land, buildings, identified intangible assets, and any noncontrolling interests that remain outstanding based upon their respective individual estimated fair values. Any difference between the net acquisition cost and the estimated fair value of the net tangible and intangible assets acquired and liabilities assumed based on estimated fair values. Allocations to land, building and improvements, and equipment are recorded based upon their respective fair values as estimated by management.

In allocating the purchase price for an acquisition, the Company determines whether the acquisition includes intangible assets or liabilities. The Company allocates a portion of the purchase price to an intangible asset attributed to the value of in-place leases. This intangible is ~~recorded~~generally amortized to expense over the expected remaining term of the respective leases. Substantially all of the leases in place at acquired properties are at market rates, as ~~goodwill.~~ the majority of the leases are month-to-month contracts.

~~Internal and external transaction costs associated with acquisitions or dispositions of real estate, as well as repairs~~Repairs and maintenance costs are charged to expense as incurred. Major replacements and betterments that improve or extend the life of the asset are capitalized and depreciated over their estimated useful lives. Depreciation is computed using the straight-line method over the estimated useful lives of the buildings and improvements, which are generally between 5 and 39 years.

Derivative Financial Instruments

The Company carries all derivative financial instruments on the balance sheet at fair value. Fair value of derivatives is determined by reference to observable prices that are based on inputs not quoted on active markets, but corroborated by market data. The accounting

for changes in the fair value of a derivative instrument depends on whether the derivative has been designated and qualifies as part of a hedging relationship. The Company’s use of derivative instruments has been limited to an interest rate cap agreement and such instrument is not designated as a cash flow hedge. For derivative instruments not designated as cash flow hedges, the unrealized gains and losses are included in interest expense in the accompanying consolidated statements of operations and comprehensive income. For derivatives designated as cash flow hedges, the effective portion of the changes in the fair value of the derivatives is initially reported in accumulated other comprehensive income (loss) in the Company’s balance sheets and subsequently reclassified into earnings when the hedged transaction affects earnings. The valuation analysis of the interest rate cap reflects the contractual terms of derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves. As of September 30, 2022 and December 31, 2021, the Company does not have derivatives designated as cash flow hedges.

Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses generally consist of property tax accruals, unearned rental income, and trade payables.

Revenue and Expense Recognition

Revenues from stores, which are primarily composed of rental income earned pursuant to month-to-month leases for storage space, as well as associated late charges and administrative fees, are recognized as ~~earned.~~earned in accordance with ASC Topic 842, Leases. Promotional discounts reduce rental income over the promotional ~~period, which is generally one month.~~period. Ancillary revenues from sales of merchandise and tenant insurance and other income are recognized ~~when earned.~~as earned in accordance with ASC Topic 606, Revenue from Contracts with Customers ("ASC 606").

The Company's management fees are earned subject to the terms of the related property management services agreements (“PSAs”). These PSAs provide that the Company will perform management services, which include leasing and operating the property and providing accounting, marketing, banking, maintenance and other services. These services are provided in exchange for monthly management fees, which are based on a percentage of revenues collected from stores owned by third parties. PSAs generally have original terms of three years, after which management services are provided on a month-to-month basis unless terminated. Management fees are due on the last day of each calendar month that management services are provided.

The Company accounts for the management services provided to a customer as a single performance obligation which are rendered over time each month in accordance with ASC 606. The total amount of consideration from the contract is variable as it is based on monthly revenues, which are influenced by multiple factors, some of which are outside the Company's control. Therefore, the Company recognizes the revenue at the end of each month once the uncertainty is resolved. No disaggregated information relating to PSAs is presented as the Company currently has only one contract.

General and administrative expenses and property operations expenses, which may include among other expenses, property taxes, utilities, repairs and maintenance, and other expenses, are expensed as incurred. The Company accrues for property tax expense based upon actual amounts billed and, in some circumstances, estimates and historical trends when bills or assessments have not been received from the taxing authorities or such bills and assessments are in dispute. ~~If these estimates are incorrect, the timing and amount of expense recognition could be incorrect. Cost of operations and general and administrative expense are expensed as incurred.~~

~~Credit Risk~~

Financial assets that are exposed to credit risk consist primarily of cash and cash equivalents and certain portions of accounts receivable including rents receivable from our tenants. Cash and cash equivalents are on deposit with highly rated commercial banks.

Evaluation of Asset Impairment

The Company evaluates its real estate assets and intangible assets consisting of in-place leases ~~and goodwill~~ for ~~impairment annually.~~indicators of impairment. If there are indicators of impairment and we determine that anthe asset is not recoverable from future undiscounted cash flows to be received through the asset’s remaining life (or, if earlier, the expected disposal date), we record an impairment charge to the extent the carrying amount exceeds the asset’s estimated fair value or net proceeds from expected disposal.

The Company evaluates goodwill for impairment annually and whenever relevant events, circumstances, and other related factors indicate that fair value may be less that carrying amounts. If it is determined that the carrying amount of goodwill exceeds the amount that would be allocated to goodwill if the reporting unit were acquired for estimated fair value, an impairment charge is recorded. There were no indicators of impairment to goodwill, real estate assets, and intangible assets as of September 30, 2022, and no impairment charges were recorded during for any periods presented herein.

Stock-based Compensation

The measurement and recognition of compensation expense for all stock-based compensation awards to employees are based on estimated fair values. Awards granted are measured at fair value and any compensation expense is recognized over the service periods of each award. For awards granted which contain a graded vesting schedule and the only condition for vesting is a service condition, compensation cost is recognized as an expense on a straight-line basis over the requisite service period as if the award was, in substance, a single award. For awards granted for which vesting is subject to a performance condition, compensation cost is recognized over the requisite service period if and when the Company concludes it is probable that the performance condition will be achieved. The estimated

number of stock awards that will ultimately vest requires judgment, and to the extent actual results or updated estimates differ from our current estimates, such amounts will be recorded as a cumulative adjustment in the period estimates are revised.

Loan Procurement Costs

Loan procurement costs, net are presented as a direct deduction from the carrying amount of the related debt liability and are amortized using the effective interest method. If there is not an associated debt liability recorded on the consolidated balance sheets, the costs are recorded as an asset net of accumulated amortization. Loan procurement costs associated with the Company's revolving credit facility remain in line of credit issuance costs, net of amortization on the Company's consolidated balance sheets. The costs associated with the line of credit are amortized using the straight-line method, which approximates the effective interest method, over the estimated life of the related debt.

Use of Estimates

The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. ~~Actual results could materially differ from management’s estimates.~~

Recently Issued Accounting Standards

In ~~February 2017, as part of the new revenue standard,~~March 2020, the FASB issued ASU ~~No. 2017-05 – Other Income – Gains~~2020-04, Reference Rate Reform (Topic 848). ASU 2020-04 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and ~~Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance, which focuses on recognizing gains~~other contracts. The guidance in ASU 2020-04 is optional and losses from the transfer of nonfinancial assets in contracts with non-customers. Specifically, the new guidance defines “in substance nonfinancial asset,” unifies guidance related to partial sales of nonfinancial assets, eliminates rules specifically addressing sales of real estate, removes exceptions to the financial asset derecognition model, and clarifies the accounting for contributions of nonfinancial assets to joint ventures. The new guidancemay be elected over time as reference rate reform activities occur. ASU 2020-04 is effective atupon issuance, and the ~~same time an entity adopts the new revenue standard. Upon adoption, the Company expects that the majority~~provisions generally can be applied prospectively as of its sale transactions will be treated as dispositions of nonfinancial assets rather than dispositions of a business given the FASB’s recently revised definition of a business (see ASU No. 2017-01 below). Additionally, in partial sale transactions where the Company sells a controlling interest in real estate but retains a noncontrolling interest, the Company expects to now fully recognize a gain or loss on the fair value measurement of the retained interest as the new guidance eliminates the partial profit recognition model.

In January 2017, the FASB issued ASU 2017-01 - Business Combinations (Topic 805): Clarifying the Definition of a Business, which changes the definition of a business to include an input and a substantive process that together significantly contribute to the ability to create outputs. A framework is provided to evaluate when an input and a substantive process are present. The new guidance also narrows the definition of outputs, which are defined as the results of inputs and substantive processes that provide goods or services to customers, other revenue, or investment income. The standard is effective on January 1, 2018, however early adoption is permitted. Upon adoption of the new guidance, the Company expects that the majority of future property acquisitions will now be considered asset acquisitions, resulting in the capitalization of acquisition related costs incurred in connection with these transactions and the allocation of purchase price and acquisition related costs to the assets acquired based on their relative fair values.

In November 2016, the FASB issued ASU No. 2016-18 - Statement of Cash Flows (Topic 230): Restricted Cash, which requires the statement of cash flows to explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The new guidance also requires entities to reconcile such total to amounts on the balance sheet and disclose the nature of the restrictions. The standard is effective on January 1, 2018, however early adoption is permitted. The standard requires the use of the retrospective transition method.2020 through December 31, 2024. The Company ~~does not believe the adoption of this standard will have a material impact on its consolidated financial statements.~~

~~In August 2016, the FASB issued ASU No. 2016-15 - Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, which is intended~~continues to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. The eight items that the ASU provides classification guidance on include (1) debt prepayment and extinguishment costs, (2) settlement of zero-coupon debt instruments, (3) contingent consideration payments made after a business combination, (4) proceeds from the settlement of insurance claims, (5) proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies, (6) distributions received from equity method investments, (7) beneficial interests in securitization transactions, and (8) separately identifiable cash flows and application of the predominance principle. The standard is effective on January 1, 2018, however early adoption is permitted. The standard requires the use of the retrospective transition method. The Company is in the process of evaluatingevaluate the impact of ~~this new guidance.~~

In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, which is intended to simplify various aspects related to how share-based payments are accounted for and presented in the financial statements. The new guidance allows for entities to make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur. In addition, the guidance ~~allows employers to withhold shares to satisfy minimum statutory tax withholding requirements up to the employees’ maximum individual tax rate without causing the award to be classified~~and may apply other elections as ~~a liability. The guidance also stipulates that cash paid by an employer to a taxing authority when directly withholding shares for tax-withholding purposes should be classified~~applicable as a financing activity on the statement of cash flows. The standard became effective on January 1, 2017. The adoption of this guidance did not have an impact on the Company’s consolidated financial position or results of operations as the Company does not have an equity compensation plan

In February 2016, the FASB issued ASU No. 2016-02 - Leases (Topic 842), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e., lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either financing or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. The standard is effective on January 1, 2019, however early adoption is permitted. The Company is in the process of evaluating the impact of this new guidance.

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance under GAAP when it becomes effective. The new standard will be effective for the Company beginning on January 1, 2018, however early application beginning on January 1, 2017 is permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company does not believe the standard will have a material impact on its consolidated financial statements or results of operations primarily because most of its revenue is derived from lease contracts, which are excluded from the scope of the new guidance.

~~3. CHANGE IN STATUS~~

Prior to the January 19, 2016 change in status from a registered investment company to an operating company, the Company recorded its investments in the self storage properties at fair value and recorded theadditional changes in the fair value as an unrealized gain or loss. Upon the effective date of the deregistration of the Company as a registered investment company, the fair value accounting as a registered investment company was no longer applicable to the Company, rather the Company began presenting on a consolidated basis, the underlying assets and liabilities of the self storage properties. The Company’s initial carrying value of the net assets of the self storage properties is the fair value on the effective date of the change in status determined as follows:market occur.

Fair value of self storage properties on the effective date of the
change in status

$
34,624,573

Total net assets of combined self storage properties

Property plant and equipment - self storage

$
26,388,167

Cash and cash equivalents

464,585

Accounts receivable

87,103

Prepaid expenses and other assets

206,146

Accounts payable and accrued expenses

(488,514
)

26,657,487

Increase to the initial carrying value of the net assets of self storage properties on the
effective date of the change in status

$
7,967,086

~~Investments in securities as of September 30, 2017 consisted of the following:~~

The carrying value of the Company’s real estate assets is summarized as ~~follows:~~follows

Self storage properties, at cost:

Beginning balance

$
51,156,701

Improvements and equipment additions

212,973

Ending balance

51,369,674

Land

Beginning balance

5,493,814

Ending balance

5,493,814

Accumulated depreciation:

Beginning balance

(875,447
)
Depreciation expense

(1,057,305
)
Ending balance

(1,932,752
)

Construction in progress:

Beginning balance

—

Current development

100,389

Ending balance

100,389

Total real estate assets at September 30, 2017

$
55,031,125


	September 30, 2022			December 31, 2021
Land	$	6,122,065		$	6,122,065
Buildings, improvements, and equipment		60,652,964			60,571,060
Self storage properties		66,775,029			66,693,125
Less: Accumulated depreciation		(9,517,403	)		(8,303,059	)
Real estate assets, net	$	57,257,626		$	58,390,066

Investments in ~~progress consists~~marketable equity securities consisted of the ~~expansion projects in Merrillville, IN and Millbrook, NY.~~ following:


			Gross Unrealized
September 30, 2022	Cost Basis		Gains		Losses		Value
Investment in marketable equity securities
Common stocks	$	755,487	$	1,837,810	$	—	$	2,593,297
Total investment in marketable equity securities	$	755,487	$	1,837,810	$	—	$	2,593,297

			Gross Unrealized
December 31, 2021	Cost Basis		Gains		Losses		Value
Investment in marketable equity securities
Common stocks	$	755,487	$	2,727,695	$	—	$	3,483,182
Total investment in marketable equity securities	$	755,487	$	2,727,695	$	—	$	3,483,182

5. FAIR VALUE MEASUREMENTS

The ~~Merrillville, IN expansion, which, when completed, will add approximately 13,300 gross square feet~~use of traditional drive-up storage units, for an aggregate cost of approximately $400,000. The Millbrook, NY expansion, which, when completed, will add approximately 16,500 of gross square feet of all-climate-controlled units. The planning forfair value to measure the ~~Millbrook, NY expansion is under development and~~financial instruments held by the Company is ~~actively evaluating proposals for~~fundamental to its ~~construction. As~~consolidated financial statements and is a critical accounting estimate. The application of ~~September 30, 2017,~~fair value measurements may be on a final estimate of construction costs has not yet been determined. As of September 30, 2017, development costs for these projects have been capitalized while the projects are under construction and are reflected in real estate assets, netrecurring or nonrecurring basis depending on the ~~Company’s consolidated balance sheet.~~accounting principles applicable to the specific asset or liability or whether management has elected to carry the item at its estimated fair value.

~~6. FAIR VALUE MEASUREMENTS~~

~~GAAP establishes a~~The hierarchy of valuation ~~hierarchy for disclosure of~~techniques is based on whether the inputs to ~~valuation used to measure~~those techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. These two types of inputs create the following fair ~~value. This hierarchy prioritizes the inputs into three broad levels as follows.~~ value hierarchy:

Level 1 ~~inputs are quoted~~— Quoted prices ~~(unadjusted)~~ in active markets for identical ~~assets~~instruments or liabilities.

Level 2 — Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants would use in pricing an asset or liability and are developed based on market data obtained from sources independent of the Company. These may include quoted prices for similar assets and liabilities, interest rates, prepayment speeds, credit risk, and market-corroborated inputs.

Level 3 — Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Company’s own assumptions about the factors that market participants use in ~~active markets or inputs that are observable for the~~pricing an asset or liability ~~either directly or indirectly through market corroboration. Level 3 inputs~~and are ~~unobservable inputs based on our own assumptions used to measure assets and liabilities at fair value. A financial asset or liability’s classification within the hierarchy is determined~~ based on the ~~lowest level input~~best information available in the circumstances.

This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when estimating fair value. The valuation method used to estimate fair value may produce a fair value measurement that ~~is significant~~may not be indicative of ultimate realizable value. Furthermore, while management believes its valuation methods are appropriate and consistent with those used by other market participants, the use of different methods or assumptions to estimate the fair value ~~measurement.~~of certain financial instruments could result in a different estimate of fair value at the reporting date. Those estimated values may differ significantly from the values that would have been used had a readily available market for such loans or investments existed, or had such loans or investments been liquidated, and those differences could be material to the financial statements.

Fair valued assets consist of shares of marketable equity securities and an interest rate cap. The value of the equity securities is based on a traded market price and is considered to be a level 1 measurement, and the value of the interest rate cap is based on its maturity, observable market-based inputs including interest rate curves and is considered to be a level 2 measurement.

The following table provides the assets and liabilities carried at fair value measured on a recurring basis ~~as of September 30, 2017:~~including assets valued at zero:

	Level 1		Level 2		Level 3		Total
September 30, 2022									Level 1		Level 2		Level 3		Total
Assets
Investment in securities	$	1,452,173	$	—	$	—	$	1,452,173
Marketable equity securities									$	2,593,297	$	—	$	—	$	2,593,297
Interest rate cap derivative									—			111,801		—		111,801
Total assets at fair value	$	1,452,173	$	—	$	—	$	1,452,173	$	2,593,297	$	111,801	$	—	$	2,705,098

December 31, 2021									Level 1		Level 2		Level 3		Total
Assets
Marketable equity securities									$	3,483,182	$	—	$	—	$	3,483,182
Interest rate cap derivative									—			9,408		—		9,408
Total assets at fair value									$	3,483,182	$	9,408	$	—	$	3,492,590

There were no assets transferred from level 1 to level 2 as of September 30, ~~2017.~~2022. The Company did ~~not~~not have any assets or liabilities that are re-measured on a recurring basis using significant unobservable inputs as of September 30, ~~2017.~~2022.

The fair values of financial instruments including cash and cash equivalents, restricted cash, accounts receivable, and accounts payable and accrued expenses approximated their respective carrying values as of September 30, ~~2017. The aggregate carrying value~~2022, due to the short maturity of ~~the Company’s debt was $20,000,000 as of September 30, 2017.~~these instruments. The estimated fair value of the Company’s combined debt was ~~$20,000,000~~approximately $15,586,581 as of September 30, ~~2017.~~2022. This estimate was based on market interest rates for comparable ~~obligations. Rates take into consideration~~obligations, general market conditions, and maturity.

6.DERIVATIVES

The Company’s ~~debt~~objective in using an interest rate derivative is ~~classified~~to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company uses an interest rate cap to manage interest rate risk. The Company carries the initial premium paid for the interest rate cap as ~~level 2~~an asset on the balance sheet at fair value. The change in the unrealized gain or loss of the ~~fair value hierarchy.~~initial premium is recorded as an increase or decrease to interest expense.

The following table summarizes the terms of the Company’s derivative financial instrument:

Notional Amount

Effective

Maturity

Product

September 30, 2022

December 31, 2021

Strike

Date

Cap Agreement

7,500,000

3.75

12/20/2021

7/6/2024

The counterparty to this arrangement is SMBC Capital Markets. The Company is potentially exposed to credit loss in the event of non-performance by the counterparty. The Company does not anticipate the counterparty to fail to meet its obligations as they become due.

7. NOTE PAYABLE

On June 24, 2016, certain ~~wholly-owned~~wholly owned subsidiaries (“Secured Subsidiaries”) of the Company entered into a loan agreement and certain other related agreements (collectively, the “Loan Agreement”) between the Secured Subsidiaries and Insurance Strategy Funding IV, LLC (the “Lender”). Under the Loan Agreement, the Secured Subsidiaries are borrowing from the Lender in the principal amount of ~~$20~~$20 million pursuant to a promissory note (the “Promissory Note”). The Promissory Note bears an interest rate equal to ~~4.192%~~4.192% per annum ~~(effective interest rate 4.40%)~~ and is due to mature on July 1, ~~2036.~~2036. Pursuant to a security agreement (the “Security Agreement”), the obligations under the Loan Agreement are secured by certain real estate assets owned by the Secured Subsidiaries.

The Company entered into a non-recourse guaranty on June 24, 2016 (the “Guaranty,” and together with the Loan Agreement, the Promissory Note and the Security Agreement, the “Loan Documents”) to guarantee the payment to the Lender of certain obligations of the Secured Subsidiaries under the Loan Agreement.

The Loan Documents require the Secured Subsidiaries and the Company to comply with certain covenants, including, among others, a minimum net worth test and other customary covenants. The Lender may accelerate amounts outstanding under the Loan Documents upon the occurrence of an event of default (as defined in the Loan Agreement) including, but not limited to, the failure to pay amounts due or commencement of bankruptcy proceedings.

The Company incurred loan procurement costs of ~~$646,246~~$646,246 and such costs have been recorded ~~net~~as a reduction of the note payable on the consolidated balance sheet and are amortized as an adjustment to interest expense over the term of the loan.

As The Company recorded amortization expense of $9,538 and $9,817 for the three months ended September 30, ~~2017,~~2022 and 2021, respectively, and $28,826 and $29,656 for the nine months ended September 30, 2022 and 2021, respectively.

The carrying value of the Company’s note payable is summarized as follows:


Note Payable	Carrying Value			September 30, 2022			December 31, 2021
Principal balance outstanding	$	20,000,000		$	17,937,046		$	18,335,407
Less: Loan procurement costs, net		(593,203	)		(390,068	)		(418,894	)
Total note payable, net	$	19,406,797		$	17,546,978		$	17,916,513

As of September 30, ~~2017,~~2022, the note payable was secured by certain of ~~its~~the Company’s stores with an aggregate net book value of approximately $ ~~34.3~~24.8 million. ~~The note payable pays interest only from August 1, 2016 through June 30, 2018.~~ The following table represents the future principal payment requirements on the note payable as of September 30, ~~2017:~~2022:

2017

$
—

2018

228,987

2019

472,600

2020

492,797

2021

513,857

2022 and thereafter

18,291,759

Total principal payments

20,000,000

Less: Loan procurement costs, net

(593,203
)
Total note payable

$
19,406,797


2022 (3 months)	$	136,063
2023		558,714
2024		582,591
2025		607,488
2026		633,449
2027 and thereafter		15,418,741
Total principal payments	$	17,937,046

Revolving Line of Credit

On July 6, 2021, certain wholly owned subsidiaries (“Amended Credit Facility Secured Subsidiaries”) of the Company entered into a first amendment to the Credit Facility Loan Agreement (collectively, the “Amended Credit Facility Loan Agreement”) between the Amended Credit Facility Secured Subsidiaries and The Huntington National Bank, successor by merger to TCF National Bank (“Amended Credit Facility Lender”). Under the Amended Credit Facility Loan Agreement, the Amended Credit Facility Secured Subsidiaries may borrow from the Amended Credit Facility Lender in the principal amount of up to $15 million pursuant to a promissory note (the “Amended Credit Facility Promissory Note”). The Amended Credit Facility Promissory Note bears an interest rate equal to 3% plus the greater of the One Month U.S. Dollar London Inter-Bank Offered Rate or one-quarter of one percent (0.25%) and is due to mature on July 6, 2024. As of September 30, 2022, the effective interest rate was 5.56%. The obligations under the Amended Credit Facility Loan Agreement are secured by certain real estate assets owned by the Amended Credit Facility Secured Subsidiaries. The Company entered into an amended and restated guaranty of payment on July 6, 2021 (“Amended Credit Facility Guaranty,” and together with the Amended Credit Facility Loan Agreement, the Amended Credit Facility Promissory Note and related instruments, the “Amended Credit Facility Loan Documents” or the “Revolver”) to guarantee the payment to the Amended Credit Facility Lender of certain obligations of the Amended Credit Facility Secured Subsidiaries under the Amended Credit Facility Loan Agreement. The Company and the Amended Credit Facility Secured Subsidiaries paid customary fees and expenses in connection with their entry into the Amended Credit Facility Loan Documents.

The Revolver requires the Subsidiaries and the Company to comply with certain covenants, including, among others, customary financial covenants. The Lender may accelerate amounts outstanding under the Loan Documents upon the occurrence of an Event of Default (as defined in the Agreement) including, but not limited to, the failure to pay amounts due to the Lender or commencement of bankruptcy proceedings.

The Company incurred issuance costs of $231,926 and $477,981 for the July 6, 2021 Revolver extension and entry into the Revolver in December 18, 2018, respectively, and such costs are amortized as an adjustment to interest expense using the straight-line method, which approximates the effective interest method, over the term of the loan. The Company recorded amortization expense of $25,400 and $45,857 for the three months ended September 30, 2022 and 2021, respectively and $76,201 and $125,521 for the nine months ended September 30, 2022 and 2021, respectively. The was no outstanding loan balance under the Revolver as of September 30, 2022 or December 31, 2021.

8. LEASES

Global Self Storage as Lessor

The Company's property rental revenue is primarily related to rents received from tenants at its operating stores. The Company's leases with its self storage tenants are generally on month-to-month terms, include automatic monthly renewals, allow flexibility to increase rental rates over time as market conditions permit, and provide for the collection of contingent fees such as late fees. These leases do not include any terms or conditions that allow the tenants to purchase the leased space. All self-storage leases for which the Company acts as lessor have been classified as operating leases. The real estate assets related to the Company's stores are included in "Real estate assets, net" on the Company's consolidated balance sheets and are presented at historical cost less accumulated depreciation and impairment, if any. Rental income related to these operating leases is included in property rental revenue on the Company's consolidated statements of operations, and is recognized each month during the month-to-month terms at the rental rate in place during each month.

Global Self Storage as Lessee

The Company is a lessee in a lease agreement for an automobile entered into November 2019 with a lease term of three years. The lease agreement does not contain any material residual value guarantees or material restrictive covenants. As a result of the Company’s election of the package of practical expedients permitted within ASC Topic 842, which among other things, allows for the carryforward of historical lease classification, all of the Company’s lease agreements have been classified as operating leases. Lease expense for payments related to the Company’s operating leases is recognized on a straight-line basis over the lease term.

Right-of-use assets represent the Company’s right to use an underlying asset during the lease term and lease liabilities represent the Company’s obligation to make lease payments as specified in the lease. Right-of-use assets and lease liabilities related to the Company’s operating leases are recognized at the lease commencement date based on the present value of the remaining lease payments

over the lease term. As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available surrounding the Company’s secured borrowing rates and implied secured spread at the lease commencement date in determining the present value of lease payments. The right-of-use asset also includes any lease payments made at or before lease commencement less any lease incentives. The Company had right-of-use assets and lease liabilities related to its operating leases of $1,183 and $1,183 and $11,622 and $11,622, respectively, as of September 30, 2022 and December 31, 2021. Such amounts are amortized using a straight-line method over the term of the lease included in prepaid expenses and other assets and accounts payable and accrued expenses on the Company’s consolidated balance sheets, respectively. Amortization expense for the three months ended September 30, 2022 and 2021 was $3,521 and $3,357, respectively, and $10,439 and $9,953 for the nine months ended September 30, 2022 and 2021, respectively. As of September 30, 2022, the Company’s weighted average remaining lease term and weighted average discount rate related to its operating leases were approximately 0.08 years and 4.78%, respectively.

The remaining future minimum lease payments under the automobile lease are $1,188 for the year ending December 31, 2022.

9. EARNINGS PER SHARE

~~Basic earnings~~Earnings per share (“EPS”) is ~~computed using~~calculated under the ~~weighted average number~~two-class method under which all earnings (distributed and undistributed) are allocated to each class of ~~shares outstanding. Diluted earnings per share is computed using~~common stock and participating securities based on their respective rights to receive dividends. The Company grants restricted stock to certain employees under its stock-based compensation programs, which entitle recipients to receive nonforfeitable dividends during the ~~weighted average number~~vesting period on a basis equivalent to the dividends paid to holders of ~~shares outstanding adjusted for~~ the ~~incremental shares attributed to potentially diluted~~Company's common stock, $0.01 par value (the “common stock”); these unvested awards meet the definition of participating securities.

The following table sets forth the computation of basic and diluted earnings per share:

For the Period

January 19, 2016

For the Three Months Ended September 30,

Nine Months Ended

through

2017

2016

September 30, 2017

September 30, 2016

Net loss

$
(129,346
)

$
(217,372
)

$
(125,524
)

$
(180,557
)
Basic and diluted weighted average common shares
outstanding

7,619,469

7,416,766

7,619,469

7,416,766

Basic and diluted per share net loss

$
(0.02
)

$
(0.03
)

$
(0.02
)

$
(0.02
)




	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2022			2021			2022			2021
Net income	$	929,864		$	629,062		$	1,617,271		$	1,901,608
Earnings and dividends allocated to participating securities		(6,227	)		(6,929	)		(17,955	)		(18,494	)
Net income attributable to common stockholders	$	923,637		$	622,133		$	1,599,316		$	1,883,114
Weighted average common shares outstanding:
Average number of common shares outstanding - basic		10,924,646			10,601,521			10,785,362			9,757,458
Net effect of dilutive unvested restricted stock awards included for treasury stock method		53,354			33,485			57,153			29,859
Average number of common shares outstanding - diluted		10,978,000			10,635,006			10,842,515			9,787,317
Earnings per common share
Basic	$	0.08		$	0.06		$	0.15		$	0.19
Diluted	$	0.08		$	0.06		$	0.15		$	0.19

Common stock dividends ~~including amounts paid to the Company’s restricted common stockholder,~~ totaled ~~$495,266~~$804,289 ($~~0.065~~0.0725 per share) and ~~$482,090~~$696,060 ($0.065 per share) for the three months ended September 30, ~~2017~~2022 and ~~2016,~~2021, respectively, and ~~$1,485,797~~$2,213,115 ($~~0.195~~0.2025 per share) and ~~$1,446,269~~$1,915,591 ($0.195 per share) for the nine months ended September 30, ~~2017~~2022 and ~~2016,~~2021, respectively. The Company estimates that the dividends paid for the nine months ended September 30, 2017 are substantially comprised of return of capital based on information available at this time and may be subject to change. The classification of these dividends for federal income tax purposes is expected to be determined after the Company’s fiscal year ending December 31, 2017.

10. RELATED PARTY TRANSACTIONS

Certain officers and directors of the Company also serve as officers ~~and~~and/or directors of Winmill & Co. Incorporated (“Winco”), Bexil Corporation, Tuxis Corporation (“Tuxis”), ~~and~~and/or their affiliates (collectively with the Company, the “Affiliates”). As of September 30, ~~2017,~~2022, certain of the Affiliates ~~owned~~and the Company’s directors and employees may be deemed to own, in the aggregate, approximately 5%7.7% of the ~~Company’s~~ outstanding common stock.

Pursuant to an arrangement between a professional employer organization (“PEO”) and the Affiliates, the PEO provides payroll, benefits, compliance, and related services for employees of the Affiliates in accordance with applicable rules and regulations under the ~~IRC~~Code and, in connection therewith, Midas Management Corporation (“MMC”), a subsidiary of Winco, acts as a conduit payer of compensation and benefits to the Affiliates’ employees including those who are concurrently employed by the Company and its Affiliates. ~~Rent expense of concurrently used office space~~The aggregate compensation and ~~overhead expenses~~benefits accrued and paid by the Company to MMC were $608,599 and $558,371 for the three months ended September 30, 2022 and 2021, respectively, and $1,789,080 and $1,711,347 for the nine months ended September 30, 2022 and 2021, respectively. Expenses for various concurrently used administrative and support functions incurred by the Affiliates are allocated at cost among them. The aggregate administrative and support function expenses accrued and paid by the Company to Winco was $6,199 and $18,104 for the three months ended September 30, 2022 and 2021, respectively, and $16,653 and $51,663 for the nine months ended September 30, 2022 and 2021, respectively. The Affiliates participate in a 401(k) retirement savings plan for substantially all qualified employees. A matching expense based upon a percentage of contributions to the plan by eligible

employees is incurred and allocated among the Affiliates. The matching expense is accrued and funded on a current basis and may not exceed the amount permitted as a deductible expense under the ~~IRC.~~Code. The ~~aggregate rent~~Company's allocated matching expense was $18,690 and ~~overhead accrued and paid by the Company to Winco~~$18,194 for the three months ended September 30, 2022, respectively, and $65,144 and $64,382 for the nine months ended September 30, ~~2017 was $13,607~~2022 and ~~$46,009,~~2021, respectively. As of September 30, ~~2017,~~2022, the Company had reimbursements payable to MMC and Winco for compensation, ~~and~~ benefits, and ~~rent~~administrative and ~~overhead~~support function expenses of ~~$9,471.~~$17,235.

The Company ~~provides a maximum~~currently reimburses monthly automobile ~~allowance~~expenses of ~~$1,000~~$1,000 per month to its President, Mark C. Winmill. To the extent that the monthly ~~maximum~~ payment under the Company’s automobile lease exceeds the current monthly ~~allowance,~~reimbursement amount, Mr. Winmill ~~must reimburse~~voluntarily reimburses the Company for the excess amount. In this regard, Mr. Winmill has reimbursed the Company ~~$3,228~~$1,878 and $2,248 for the automobile payments paid and due in ~~2017.~~2022 and 2021, respectively.

The Company leases office space and storage to ~~Tuxis~~certain Affiliates under a rental ~~agreement.~~agreements. The terms of occupancy are month to month and automatically renew unless terminated by either party on ten ~~days’~~days’ written notice. The ~~monthly~~Company earned rental ~~charge is $1,000 per month, due~~income of $4,800 and ~~payable on the first day of each month. For~~$3,967 for the three months ended September 30, 2022 and 2021, respectively, and $14,400 and $8,569 for the nine months ended September 30, ~~2017,~~2022 and 2021, respectively.

On May 19, 2020, MMC (the “Borrower”) entered into a Paycheck Protection Program Term Note (“PPP Note”) with Customers Bank on behalf of itself and the Affiliates under the Paycheck Protection Program of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) administered by the U.S. Small Business Administration (the “SBA”). The Borrower received total ~~rent paid by Tuxis~~proceeds of $486,602 from the PPP Note of which $307,210 was attributable to the Company under the SBA’s loan determination formula. In accordance with the requirements of the CARES Act, the Affiliates used the proceeds from the PPP Note primarily for payroll and other eligible costs. Interest accrues on the PPP Note at the rate per annum of 1.00%. In March 2021, the Borrower applied to Customers Bank for forgiveness of the amount due on the PPP Note in an amount equal to the sum of payroll and other eligible costs incurred during the Covered Period, as defined therein, following disbursement under the PPP Note. On April 5, 2022, the Borrower was ~~$3,000~~granted forgiveness of the entire PPP Note and ~~$9,000, respectively.~~any accrued interest. Upon forgiveness, the Company received $307,210 in cash from the borrower, which was the amount attributable to the Company under the SBA's loan determination formula, and recorded a gain for such amount, in its consolidated statements of operations and comprehensive income.

~~10.~~11. CAPITAL STOCK

As of September 30, ~~2017,~~2022, the Company was authorized to issue ~~19,900,000~~450,000,000 shares of common stock ~~$0.01~~of which 11,100,842 were issued and outstanding. The Company was also authorized to issue 50,000,000 shares of preferred stock, $0.01 par value, ~~per share. The~~of which none has been issued.

On January 14, 2022, the Company ~~also had 100,000~~entered into an At Market Offering Sales Agreement (the “Sales Agreement”) with B. Riley Securities, Inc. (the “Agent”) pursuant to which the Company may sell, from time to time, shares of ~~Series A participating preferred~~common stock ~~$0.01 par value per share, authorized,~~having an aggregate offering price of ~~which none had been issued. See Note 13, Subsequent Events, for additional information related~~up to $15,000,000, through the Agent. As of September 30, 2022, under the Sales Agreement, the Company has sold and issued an aggregate of 369,142 shares of common stock and raised aggregate gross proceeds of approximately $2,245,635, less sales commissions of approximately $44,951 and other offering costs resulting in net proceeds of $1,982,028.

12. STOCK-BASED COMPENSATION

On October 16, 2017 (“Effective Date”), the Company’s ~~Capital Stock.~~

~~11. STOCKHOLDER RIGHTS PLAN~~

~~On January 28, 2016,~~stockholders approved the ~~Company announced that~~Company’s 2017 Equity Incentive Plan (the “Plan”). The Plan is designed to provide equity-based incentives to certain eligible persons, as defined in the Plan, in the form of options, share appreciation rights, restricted stock, restricted stock units, dividend equivalent rights or other forms of equity-based compensation as determined in the discretion of the Board of Directors, ~~had adopted a stockholders rights plan (the “Rights Plan”). To implement~~ the ~~Rights Plan,~~Compensation Committee of the Board of Directors, ~~declared a dividend distribution~~or other designee thereof. The total number of ~~one right for each outstanding share of Company common stock, par value $.01 per share, to holders of record of the~~ shares of common stock atreserved and available for issuance under the ~~close~~Plan on the Effective Date was 760,000.

On March 28, 2022, the Company approved restricted stock awards under the Plan to certain of ~~business~~its officers and employees in the aggregate amount of 26,025 shares, of which 11,000 shares are time-based grants and 15,025 shares are performance-based grants. The Company recorded $39,179 and $54,092 for the three months ended September 30, 2022 and 2021, respectively, and $131,112 and $140,274 for the nine months ended September 30, 2022 and 2021, respectively, of expense related to restricted stock awards in general and administrative expense in its consolidated statement of operations. As of September 30, 2022, there was $234,007 and $124,365 of unrecognized compensation expense related to unvested time-based and performance-based restricted stock awards, respectively. That cost is expected to be recognized over a weighted-average period of 2.6 years and 2.9 years for time-based and performance-based awards, respectively. The fair value of common stock awards is determined based on ~~January 29, 2016. Each right entitled~~ the ~~registered~~closing trading price of the common stock on the grant date.

Time-Based Restricted Stock Grants

These time-based grants vest solely based on continued employment, with 6.25% of the shares eligible to vest on each three- month anniversary of the grant date during the remaining four-year time vesting period. Time-based restricted stock cannot be transferred during the vesting period. These time-based restricted stock grants entitle the holder to ~~purchase from~~dividends paid by the Company ~~one one-thousandth~~on shares of ~~a share~~its common stock, including unvested shares.

A summary of ~~preferred~~the Company’s performance-based restricted stock ~~par value $.01 per share. The rights were distributed~~grant activity is as ~~a non-taxable dividend~~follows:


				Weighted-Average
				Grant-Date
Time-Based Restricted Stock Grants	Shares			Fair Value
Unvested at December 31, 2021		61,201		$	4.45
Granted		11,000		$	5.52
Vested		(18,094	)	$	4.50
Forfeited		(2,938	)	$	4.67
Unvested at September 30, 2022		51,169		$	4.65

Performance-Based Restricted Stock Grants

Performance-based restricted stock grants vest based on continued employment and ~~were set to expire on January 29, 2026. The rights were evidenced~~the achievement of certain Funds from Operations, as adjusted (“AFFO”) and same store revenue growth (“SSRG”) goals by the ~~underlying~~ Company ~~common stock,~~during the year of the grant. Each of these performance components are weighted 50% and ~~no separate preferred stock purchase rights certificates had been distributed.~~are measured over the performance cycle, which is defined as the year ending on December 31st in the year of the grant. At the end of the performance cycle, the financial performance components are reviewed to determine the number of shares actually earned, which can be as low as 0% of shares granted and up to a maximum of 200% of shares granted. The ~~rights~~shares which are earned will remain subject to ~~acquire preferred stock were not immediately exercisable~~quarterly vesting during the remaining four-year time vesting period. Dividends paid by the Company prior to the determination of how many shares are earned will be retained by the Company and ~~would have become exercisable~~released only ifwith respect to earned shares. If a ~~person or group, other than Exempt Persons~~Change in Control (as defined in the Rights Plan agreement), acquired or commenced a tender offer for 9.8% or more of the Company’s common stock. If a person or group, other than an Exempt Person, acquired or commenced a tender offer for 9.8% or more of the Company’s common stock, each holder of a right, except the acquirer, would have been entitled, subject to the Company’s right to redeem or exchange the right, to exercise, at an exercise price of $12, the right to purchase one one-thousandth of a share of the Company’s newly created Series A Participating Preferred Stock, orPlan) occurs the number of shares earned will equal the greater of ~~Company common stock equal to~~ the ~~holder’s~~ number of ~~rights multiplied by~~shares granted and the ~~exercise price~~number of shares which would have been earned based on the AFFO and ~~divided by 50% of the market price of the Company’s common stock on~~SSRG through the date of the ~~occurrence of such an event. The Company’s Board of Directors could terminate~~Change in Control. If following a Change in Control, a grantee is terminated by the ~~Rights Plan at any time~~Company without Cause or ~~redeem~~by the ~~rights, for $0.01 per right, at any time before a person acquired 9.8% or more~~grantee with Good Reason (as each is defined in the Plan), all unvested restricted stock will fully vest.

A summary of the Company’s ~~common stock. This Rights Plan replaced~~time-based restricted stock grant activity is as follows:


				Weighted-Average
				Grant-Date
Performance-Based Restricted Stock Grants	Shares			Fair Value
Unvested at December 31, 2021		22,535		$	4.34
Granted		15,025		$	5.52
Vested		(10,540	)	$	4.31
Unvested at September 30, 2022		27,020		$	5.01

Forfeitures are accounted for as they occur, compensation cost previously recognized for an award that is forfeited because of a failure to satisfy a service or performance condition is reversed in the ~~Company’s stockholders rights plan dated November 25, 2015, which expired on its own terms on March 24, 2016.~~ ~~See Note 13, Subsequent Events, for additional information related to~~period of the ~~Company’s Stockholder Rights Plan.~~forfeiture.

~~12.~~13. COMMITMENTS AND CONTINGENCIES

The Company enters into contracts that contain a variety of representations and warranties and which may provide general indemnifications. The Company’s maximum exposure under these arrangements is unknown as it involves future claims that may be made against the Company under circumstances that have not occurred.

14. RISKS AND UNCERTANTIES

General Market Risks

The ~~Company leases an automobile under a lease expiring on January 3, 2020. The future minimum lease payments under~~Company’s portfolio and the ~~lease in aggregate~~success of its investment activities are ~~$45,684, comprised of annual payments of $15,288 for~~affected by global and national economic, political and market conditions generally and also by the ~~years ending December 31, 2017, 2018,~~local economic conditions where its assets are located. Certain external events such as public health crises, including the novel coronavirus (“COVID-19”) and ~~2019, respectively.~~

~~Upon~~its variants, natural disasters and geopolitical events, including the ~~satisfaction of certain conditions described in the 2016 Purchase Agreement with Tuxis, in connection with expanding the Company’s Millbrook, New York store, an additional $900,000 cash payment is~~ongoing conflict between Russia, Belarus and Ukraine, have recently led to increased financial and credit market volatility and disruptions, leading to record inflationary pressure, rising interest rates, supply chain issues, labor shortages and recessionary concerns. Although more normalized activities have resumed and there has been improvement due to ~~Tuxis from the Company. On May 2, 2017,~~global and domestic vaccination efforts, at this time the Company ~~received approval from~~cannot predict the ~~local municipality for the Millbrook expansion project and, upon commencement of construction, the additional cash payment is expected to be made by the Company to Tuxis.~~

~~13. SUBSEQUENT EVENTS~~

~~On October 16, 2017, the Company’s stockholders approved the amendment and restatement~~full extent of the Company’s charter which, among other things, increased the total number of shares of stock which the Company has authority to issue to 500,000,000 consisting of 450,000,000 shares of common stock, $0.01 par value per share, and 50,000,000 shares of preferred stock, $0.01 par value per share. Stockholders also approved the Company’s 2017 Equity Incentive Plan (the “Plan”). The Plan is designed to provide equity-based incentives to certain eligible persons, as defined in the Plan, in the form of options, share appreciation rights, restricted shares, restricted share units, dividend equivalent rights or other forms of equity-based compensation as determined in the discretionimpacts of the ~~Board of Directors, the Compensation Committee of the Board of Directors, or other designee thereof.~~

On October 20, 2017, the Company and American Stock Transfer & Trust Company, LLC, as rights agent (the “Rights Agent”), entered into an amendment (the “Amendment”) to the Rights Plan, dated as of January 29, 2016, betweenCOVID-19 pandemic on the Company and the ~~Rights Agent.~~economy as a whole. Additionally, in response to recent inflationary pressure, the U.S. Federal Reserve and other global central banks have raised interest rates in 2022 and have indicated likely further interest rate increases. The ~~Amendment accelerated~~full impact of such external events on the ~~expiration~~financial and credit markets and consequently on the Company’s financial conditions and results of operations is uncertain and cannot be fully predicted. The Company will continue to monitor these events and will adjust its operations as necessary.

Credit Risk

Credit risk - Financial assets that are exposed to credit risk consist primarily of cash, cash equivalents, and restricted cash and certain portions of accounts receivable including rents receivable from our tenants. Risk to collection of rents receivable is mitigated by: (i) dispersion of rents receivable across many tenants, (ii) marketing targeted to tenants that have established credit, (iii) use of autopay, and (iv) use of collection procedures. Cash, cash equivalents and restricted cash are on deposit with highly rated commercial banks.

Market Risk

Investments in securities subject the Company to market risk. Investments in securities may decline in value. The Company monitors the stock prices of the Company’s preferred share purchase rights under the Rights Plan from the Close of Business (as such term is defined in the Rights Plan) on January 29, 2026 to the Close of Business on October 20, 2017,investments and the ~~Rights Plan was terminated at such time. At the time~~financial performance of the ~~termination~~related companies.

Item 2. Management’s Discussion and Analysis of ~~the Rights Plan, all~~Financial Condition and Results of ~~the rights distributed to holders of the Company’s common stock pursuant to the Rights Plan expired.~~Operations.

~~Item 2.~~

~~Management’s Discussion and Analysis of~~ ~~Financial Condition and Results of Operations.~~

CAUTIONARY LANGUAGE

The following discussion and analysis should be read in conjunction with our unaudited “Condensed Consolidated Financial Statements” and the “Notes to Condensed Consolidated Financial Statements (unaudited)” appearing elsewhere in this report. We make statements in this section that may be forward looking statements within the meaning of the federal securities laws. For a complete discussion of forward looking statements, see the section in this report entitled “Statement on Forward Looking Information.” References to the “Company,” “we,” “us,” or “our company” refer to Global Self Storage, Inc., a Maryland corporation, including, as the context requires, its direct and indirect subsidiaries.

CRITICAL ACCOUNTING POLICIES

Our discussion and analysis of our financial condition and results of operations are based on our unaudited condensed consolidated financial statements contained elsewhere in this report, which have been prepared in accordance with GAAP. Our notes to the unaudited condensed consolidated financial statements contained elsewhere in this report describe the significant accounting policies essential to our unaudited condensed consolidated financial statements. Preparation of our financial statements requires estimates, judgments, and assumptions. We believe that the estimates, judgments, and assumptions that we have used are appropriate and correct based on information available at the time they were made. These estimates, judgments, and assumptions can affect our reported assets and liabilities as of the date of the financial statements, as well as the reported revenues and expenses during the period presented. If there are material differences between these estimates, judgments, and assumptions and actual facts, our financial statements may be affected.

In many cases, the accounting treatment of a particular transaction is specifically dictated by GAAP and does not require our judgment in its application. There are areas in which our judgment in selecting among available alternatives would not produce a materially different result, but there are some areas in which our judgment in selecting among available alternatives would produce a materially different result. Please refer to the notes to the unaudited condensed consolidated financial statements that contain additional information regarding our critical accounting policies and other disclosures.

Management’s Discussion and Analysis Overview

The Company is a self-administered and self-managed REIT ~~focused on the ownership, operation, acquisition, development,~~that owns, operates, manages, acquires, develops and ~~redevelopment of~~redevelops self storage ~~facilities~~properties (“stores” or “properties”) in the United States. Our stores are designed to offer affordable, easily accessible, and secure storage space for residential and commercial customers. ~~The~~As of September 30, 2022, the Company ~~currently owns~~owned and ~~operates,~~operated, or managed, through its wholly owned subsidiaries, ~~eleven~~thirteen stores located in Connecticut, Illinois, Indiana, New York, Ohio, Pennsylvania, South Carolina, and ~~South Carolina. As previously reported in our press release~~Oklahoma. The Company was formerly registered under the Investment Company Act of 1940, as amended (the “1940 Act”) as a non-diversified, closed end management investment company. The Securities and Exchange Commission’s (“SEC”) order approving the Company’s application to deregister from the 1940 Act was granted on January 19, 2016. On January 19, 2016, ~~on that day,~~ the Company changed its name to Global Self Storage, Inc. from Self Storage Group, Inc., changed its SEC registration from an investment company to an operating company reporting under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and ~~uplisted~~listed its common stock on NASDAQ under the symbol “SELF”.

The Company was incorporated on December 12, 1996 under the laws of the state of Maryland. The Company has elected to ~~NASDAQ.~~be treated as a REIT under the Internal Revenue Code of 1986, as amended (the “Code”). To the extent the Company continues to qualify as a REIT, it will not generally be subject to U.S. federal income tax, with certain limited exceptions, on its taxable income that is distributed to its stockholders.

Our store operations generated most of our net income for all periods presented herein. Accordingly, a significant portion of management’s time is devoted to seeking to maximize cash flows from our existing stores, as well as seeking investments in additional stores. The Company expects to continue to earn a majority of its ~~net~~gross income from its store operations as its current store operations continue to develop and as it makes additional store acquisitions. Over time, the Company expects to divest its remaining portfolio of investment securities and use the proceeds to acquire, develop, redevelop, and/or operate additional stores. The Company expects its income from investment securities to continue to decrease as it continues to divest its holdings of investment securities.

Financial Condition and Results of Operations

Our financing strategy is to minimize the cost of our capital in order to maximize the returns generated for our stockholders. For future acquisitions, the Company may use various financing and capital raising alternatives including, but not limited to, debt and/or equity offerings, credit facilities, mortgage financing, and joint ventures with third parties.

On June 24, 2016, certain wholly owned subsidiaries ~~(“Secured Subsidiaries”)~~ of the Company (“Term Loan Secured Subsidiaries”) entered into a loan agreement and certain other related agreements (collectively, the ~~“Loan~~“Term Loan Agreement”) between the Term Loan Secured Subsidiaries

and Insurance Strategy Funding IV, LLC (the ~~“Lender”~~“Term Loan Lender”). Under the Term Loan Agreement, the Term Loan Secured Subsidiaries are borrowing from ~~the~~Term Loan Lender in the principal amount of $20 million pursuant to a promissory note (the ~~“Promissory~~“Term Loan Promissory Note”). The Term Loan Promissory Note bears an interest rate equal to 4.192% per annum and is due to mature on July 1, 2036. Pursuant to a security agreement (the ~~“Security~~“Term Loan Security Agreement”), the obligations under the Term Loan Agreement are secured by certain real estate assets owned by the Term Loan Secured Subsidiaries. J.P. Morgan Investment Management, Inc. acted as Special Purpose Vehicle Agent of the Term Loan Lender.

The Company entered into a non-recourse guaranty on June 24, 2016 (the ~~“Guaranty,~~“Term Loan Guaranty,” and together with the Term Loan Agreement, the Term Loan Promissory Note and the Term Loan Security Agreement, the ~~“Loan~~“Term Loan Documents”) to guarantee the payment to Lender of certain obligations of the Term Loan Secured Subsidiaries under the Term Loan Agreement.

On May 19, 2020, an affiliate of the Company (the “Borrower”) entered into a Paycheck Protection Program Term Note (“PPP Note”) with Customers Bank on behalf of itself, the Company, and certain other affiliates under the Paycheck Protection Program of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) administered by the U.S. Small Business Administration (the “SBA”). The Borrower received total proceeds of $486,602 from the PPP Note of which $307,210 was attributable to the Company under the SBA’s loan determination formula. In accordance with the requirements of the CARES Act, the Company and certain other affiliates used the proceeds from the PPP Note primarily for payroll and other eligible costs. Interest accrues on the PPP Note at the rate per annum of 1.00%. In March 2021, the Borrower applied to Customers Bank for forgiveness of the amount due on the PPP Note in an amount equal to the sum of payroll and other eligible costs incurred during the Covered Period, as defined therein, following disbursement under the PPP Note. On April 5, 2022, the Borrower was granted forgiveness of the entire PPP Note and any accrued interest. Upon forgiveness, the Company received $307,210 in cash from the borrower, which was the amount attributable to the Company under the SBA's loan determination formula, and recorded a gain for such amount in its consolidated statements of operations and comprehensive income.

On June 25, 2021, we completed an underwritten public offering whereby we sold and issued an aggregate of 1,121,496 shares of our common stock at the price of $5.35 per share. Subsequently, the over-allotment option was exercised, and sale completed on June 29, 2021, increasing the total number of shares sold and issued to 1,289,720. We raised aggregate gross proceeds of approximately $6.9 million in the public offering after giving effect to the exercise of the over-allotment option.

On July 6, 2021, certain wholly owned subsidiaries (“Amended Credit Facility Secured Subsidiaries”) of the Company entered into a first amendment to the Credit Facility Loan ~~Documents require~~Agreement (collectively, the “Amended Credit Facility Loan Agreement”) between the Amended Credit Facility Secured Subsidiaries and The Huntington National Bank, successor by merger to TCF National Bank (“Amended Credit Facility Lender”). Under the ~~Company~~Amended Credit Facility Loan Agreement, the Amended Credit Facility Secured Subsidiaries may borrow from the Amended Credit Facility Lender in the principal amount of up to ~~comply with certain covenants, including, among others,~~$15 million pursuant to a ~~minimum net worth test~~promissory note (the “Amended Credit Facility Promissory Note”). The Amended Credit Facility Promissory Note bears an interest rate equal to 3% plus the greater of the One Month U.S. Dollar London Inter-Bank Offered Rate or one-quarter of one percent (0.25%) and ~~other customary covenants.~~is due to mature on July 6, 2024. As of September 30, 2022, the effective interest rate was 5.56%. The ~~Lender may accelerate amounts outstanding~~obligations under the Amended Credit Facility Loan ~~Documents upon~~Agreement are secured by certain real estate assets owned by the ~~occurrence~~Amended Credit Facility Secured Subsidiaries. The Company entered into an amended and restated guaranty of ~~an Event of Default (as defined in~~payment on July 6, 2021 (“Amended Credit Facility Guaranty,” and together with the Amended Credit Facility Loan ~~Agreement) including, but not limited~~Agreement, the Amended Credit Facility Promissory Note and related instruments, the “Amended Credit Facility Loan Documents”) to guarantee the payment to the ~~failure to pay amounts due or commencement~~Amended Credit Facility Lender of ~~bankruptcy proceedings.~~certain obligations of the Amended Credit Facility Secured Subsidiaries under the Amended Credit Facility Loan Agreement. The Company and the Amended Credit Facility Secured Subsidiaries paid customary fees and expenses in connection with their entry into the ~~Loan Documents. There is no material relationship between the Company, its Secured Subsidiaries, or its affiliates and the Lender, other than in respect of the~~Amended Credit Facility Loan Documents. The ~~foregoing description is qualified in its entirety by~~Company also maintains a bank account at the full terms and conditions of the Loan Documents, filed as Exhibits 10.1, 10.2, 10.3 and 10.4 to the Current Report on Form 8-K filed on June 30, 2016. We used the proceeds of such debt financing primarily in connection with store acquisitions in 2016 as described below.

Amended Credit Facility Lender. As of September 30, ~~2017,~~2022, we have no withdrawn proceeds under the Amended Credit Facility Loan Agreement. We currently intend to strategically withdraw proceeds available under the Amended Credit Facility Loan Agreement to fund: (i) the acquisition of additional self storage properties, (ii) expansions at existing self storage properties in our portfolio, and/or (iii) joint ventures with third parties for the acquisition and expansion of self storage properties.

On January 14, 2022, the Company entered into an At Market Offering Sales Agreement (the “Sales Agreement”) with B. Riley Securities, Inc. (the “Agent”) pursuant to which the Company may sell, from time to time, shares of common stock having an aggregate offering price of up to $15,000,000, through the Agent. During the nine months ended September 30, 2022, under the Sales Agreement, the Company has sold and issued an aggregate of 369,142 shares of common stock and raised aggregate gross proceeds of approximately $2,245,635, less sales commissions of approximately $44,951 and other offering costs resulting in net proceeds of $1,982,028.

We continue to actively review a number of store and store portfolio acquisition opportunities and have been working to further develop and expand our current stores. We did not complete any acquisitions in the nine months ended September 30, 2022. In addition, we may pursue third-party management opportunities of properties owned by certain affiliates or joint venture partners for a fee, and utilize such relationships with third-party owners as a source for future acquisitions and investment opportunities. As of September 30, 2022, under our third-party management platform, Global MaxManagementSM, we managed one third-party owned property, which was

rebranded as “Global Self Storage,” had 137,318-leasable square feet and was comprised of 619 climate-controlled and non-climate-controlled units located in Edmond, Oklahoma.

We expect we will have sufficient cash from current sources to meet our liquidity needs for the next twelve months because our capital resources currently exceed our projected expenses for the next twelve months. However, we may opt to supplement our equity capital and increase potential returns to our stockholders through the use of prudent levels of borrowings. We may use debt when the available terms and conditions are favorable to long-term investing and well-aligned with our business plan.

As of September 30, 2022, we had capital resources totaling approximately ~~$4.0~~$24.1 million, comprised of ~~$2.5~~$6.5 million of cash, ~~and~~ cash equivalents, and ~~$1.5~~restricted cash, $2.6 million of marketable ~~securities.~~securities, and $15.0 million available for withdrawal under the Credit Facility Loan Agreement. Capital resources derived from retained cash flow have been and are currently expected to continue to be negligible. Retained operating cash flow represents our expected cash flow provided by operating activities, less stockholder distributions and capital expenditures to maintain stores. These capital resources allow us to continue to execute our strategic business plan, which includes funding acquisitions, either directly or through joint ventures; expansion projects at our existing properties; and broadening our revenue base and pipeline of potential acquisitions through developing Global MaxManagementSM, our third-party management platform. Our board of directors regularly reviews our strategic business plan, including topics and metrices like capital formation, debt versus equity ratios, dividend policy, use of capital and debt, funds from operations (“FFO”) and adjusted funds from operations (“AFFO”) performance, and optimal cash levels.

We ~~have been actively reviewing~~expect that the results of our operations will be affected by a number of store and store portfolio acquisition opportunities and have been working to further develop and expand our current stores. On August 29, 2016, we acquired our store in Lima, OH for approximately $5,300,000 in cash and, on September 26, 2016, we acquired our store in Fishers, IN for approximately $7,700,000 in cash.

Additionally, on December 30, 2016, we acquired our stores in Clinton, CT and Millbrook, NY, along with an adjacent property with expansion potential in Millbrook, NY, from Tuxis Corporation, a Company affiliate (“Tuxis”), for $5,925,000 in cash and 202,703 unregistered and restricted sharesfactors. Many of the ~~Company’s common stock. Upon the satisfaction of certain conditions, an additional $900,000 cash payment is expected to~~factors that will affect our operating results are beyond our control. The Company and its properties could be ~~made~~materially and adversely affected by the ~~Company~~risks, or the public perception of the risks, related to, ~~Tuxis. On May 2, 2017,~~among other things, public health crises, including the ~~Company received approval from~~novel coronavirus (“COVID-19”) and its variants, natural disasters and geopolitical events, including the ~~local municipality for the Millbrook expansion project~~ongoing conflict between Russia, Belarus and ~~upon commencement of construction, the additional cash payment is expected to be made by the Company to Tuxis.~~Ukraine, financial and credit market volatility and disruptions, inflationary pressures, rising interest rates, supply chain issues, labor shortages and recessionary concerns.

Results of Operations for the Three Months Ended September 30, ~~2017~~2022 Compared with the Three Months Ended September 30, ~~2016~~2021

Revenues

~~Rental income~~Total revenues increased from $~~1,306,822~~$2,730,518 during the three months ended September 30, ~~2016~~2021 to ~~$1,871,642~~$3,086,412 during the three months ended September 30, ~~2017,~~2022, an increase of ~~$564,820,~~13.0%, or ~~43.2%.~~$355,894. Rental income increased from $2,608,664 during the three months ended September 30, 2021 to $2,970,875 during the three months ended September 30, 2022, an increase of 13.9%, or $362,211. The increase was primarily attributable to ~~the additional income from the stores acquired in 2016, included in our non same-store portfolio. The increase in same-store revenue was due primarily to an increase~~increases in rental and occupancy rates and net leased square footage. Our stores in Illinois, Indiana, Pennsylvania, New York, and South Carolina were our strongest market performers as far as occupancy, revenue, and net operating income growth.rates.

Other store related income consists of customer insurance fees, sales of storage supplies, and other ancillary revenues. Other store related income ~~increased~~decreased from ~~$42,463~~$102,428 during the three months ended September 30, ~~2016~~2021 to ~~$61,515~~$93,630 during the three months ended September 30, ~~2017, an increase~~2022, a decrease of ~~$19,052,~~8.6%, or ~~44.9%. This increase was primarily attributable to increased~~$8,798.

Income from our third-party management platform consists of management fees and customer insurance fees. Management fees ~~on the stores acquired in 2016~~ and ~~an increase in same-store property related~~other income ~~mainly attributable to increased insurance participation and higher average occupancy.~~

~~Operating Expenses~~

~~Store operating expenses~~ increased from ~~$525,102~~$19,426 during the three months ended September 30, ~~2016~~2021 to ~~$777,872~~$21,907 during the three months ended September 30, ~~2017, an increase of $252,770, or 48.1%, which was primarily attributable to the increased~~2022.

Operating Expenses

Total operating expenses ~~associated with our newly acquired stores.~~

~~Depreciation and amortization~~ increased from ~~$236,503~~$1,946,479 during the three months ended September 30, ~~2016~~2021 to ~~$439,342~~$1,980,729 during the three months ended September 30, ~~2017,~~2022, an increase of ~~$202,839,~~1.8%, or ~~85.8%. The difference is~~$34,250, which was primarily attributable to ~~(i) depreciation of the building and fixtures related to the stores acquired~~an increase in ~~2016, (ii) the expansion of the Bolingbrook~~ store ~~and (iii) and amortization of the in-place leases related to the stores acquired in 2016.~~

~~General and administrative~~level expenses. Store operating expenses increased from ~~$393,561~~$940,372 during the three months ended September 30, ~~2016~~2021 to ~~$640,566~~$1,010,495 during the three months ended September 30, ~~2017,~~2022, an increase of ~~$247,005,~~7.5%, or ~~62.8%.~~$70,123. The ~~change~~increase in store operating expenses was due primarily ~~attributable~~ to increased ~~legal expenses in connection with our transformation from an investment company to an operating company. Increased~~ expenses for ~~payroll, stockholder communications~~employment costs and ~~vice president level employee acquisition also contributed to the change.~~ real estate property taxes.

~~Business development~~Depreciation and ~~store acquisition related costs~~amortization decreased from ~~$238,537~~$409,763 during the three months ended September 30, ~~2016~~2021 to ~~$105~~$404,961 during the three months ended September 30, ~~2017.~~ 2022, a decrease of 1.2%, or $4,802.

General and administrative expenses decreased from $594,547 during the three months ended September 30, 2021 to $560,675 during the three months ended September 30, 2022, a decrease of 5.7%, or $33,872. The decrease in general and administrative expenses during this period are primarily attributable to decreased professional fees and savings attributable to moving our corporate headquarters from New York City to Millbrook, New York.

Business development, capital raising, store acquisition, and third-party management marketing expenses increased from $1,797 during the three months ended September 30, 2021 to $4,598 during the three months ended September 30, 2022. These costs primarily consist of costs incurred in connection with business development, capital raising, and future potential store ~~acquisition-related~~acquisitions, and third-party management marketing expenses. Business development costs are typically non-recurring and fluctuate based on periodic business development and acquisition activity.

~~Other~~Operating Income

As a result of the operating effects noted above, operating income ~~(expense)~~

~~Interest expense on loans~~ increased from ~~$219,859~~$784,039 during the three months ended September 30, ~~2016~~2021 to ~~$220,209~~$1,105,683‭‬ during the three months ended September 30, ~~2017.~~2022, an increase of 41.0%, or $321,644.‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬

~~Dividend and interest~~Other income ~~was $46,905~~(expense)

Interest expense on debt decreased from $256,502 during the three months ended September 30, ~~2016 and $15,591~~2021 to $163,153 during the three months ended September 30, ~~2017. The~~2022. This decrease was ~~primarily~~ attributable to a lower principal balance on outstanding debt, lower amortization of loan procurement costs, and to the ~~sale~~change in fair value of ~~certain investment~~the interest rate cap. The cash payments for the $20 million loan remain the same every month until June 2036 and are $107,699 per month.

Dividend, interest, and other income was $19,533 during the three months ended September 30, 2021 and $46,846 during the three months ended September 30, 2022.

Unrealized gain on marketable equity securities ~~held by~~was $81,992 during the ~~Company.~~three months ended September 30, 2021 and the unrealized loss on marketable equity securities was $59,512 during the three months ended September 30, 2022.

Net income (loss)

For the three months ended September 30, ~~2016, the~~2021, net ~~loss~~income was ~~$217,372,~~$629,062, or ~~$0.03~~$0.06 per fully diluted share. For the three months ended September 30, ~~2017, the~~2022, net ~~loss~~income was ~~$129,346,~~$929,864, or ~~$0.02~~$0.08 per fully diluted share.

Results of Operations for the Nine Months Ended September 30, ~~2017~~2022 Compared with the ~~Period January 19, 2016 through~~Nine Months Ended September 30, ~~2016~~2021

The Company’s results of operations for the period subsequent to its change in status from an investment company to an operating company on January 19, 2016 are presented on a consolidated basis to include the Company and its wholly owned subsidiaries, rather than using the investment company fair valuation approach. For the period January 1, 2016 to January 18, 2016, the Company was a registered investment company and applied the accounting guidance in ASC 946 and such period is not reflected in the following discussion. The change in status and related accounting policies affect the direct comparability of the results of operations for the first nine months of 2017 with the first nine months of 2016. As such, for the nine months of 2016, the presentation of the results of operations is limited to the period during which the Company has applied operating company accounting policies (January 19, 2016 through September 30, 2017) and relates to the unaudited consolidated financial statements presented for such period in this report.Revenues

~~Revenues~~

~~Rental income~~Total revenues increased from ~~$3,305,590 during the period January 19, 2016 to September 30, 2016 to $5,357,521~~$7,747,227 during the nine months ended September 30, ~~2017,~~2021 to $8,886,141 during the nine months ended September 30, 2022, an increase of ~~$2,051,931,~~14.7%, or ~~62.1%.~~$1,138,914. Rental income increased from $7,402,570 during the nine months ended September 30, 2021 to $8,542,221 during the nine months ended September 30, 2022, an increase of 15.4%, or $1,139,651. The increase was primarily attributable to ~~the additional income from the stores acquired in 2016, included in our non same-store portfolio. The increase in same-store revenue was due primarily to an increase~~increases in rental and occupancy rates and net leased square footage. Our stores in Illinois, Indiana, Pennsylvania, New York, and South Carolina were our strongest market performers as far as occupancy, revenue, and net operating income growth.rates.

Other store related income consists of customer insurance fees, sales of storage supplies, and other ancillary revenues. Other store related income ~~increased~~decreased from ~~$114,208 during the period January 19, 2016 to September 30, 2016 to $171,556~~$288,249 during the nine months ended September 30, ~~2017, an increase of $57,348, or 50.2%. This increase was primarily attributable~~2021 to increased fee revenue and insurance fees on the stores acquired in 2016 and an increase in same-store property related income mainly attributable to increased insurance participation and higher average occupancy.

~~Operating Expenses~~

~~Store operating expenses increased from $1,449,341 during the period January 19, 2016 to September 30, 2016 to $2,190,818~~$281,702 during the nine months ended September 30, ~~2017, an increase~~2022, a decrease of ~~$741,477,~~2.3%, or ~~51.2%, which was primarily attributable to the increased expenses associated with~~$6,547.

Income from our ~~newly acquired stores.~~

~~Depreciation~~third-party management platform consists of management fees and ~~amortization~~customer insurance fees. Management fees and other income increased from ~~$595,478 during the period January 19, 2016 to September 30, 2016 to $1,341,261~~$56,408 during the nine months ended September 30, ~~2017, an increase of 745,783, or 125.2%. The difference is primarily attributable~~2021 to (i) the shorter 2016 comparable period commencing on January 19, 2016, the effective date of the Company’s deregistration as an investment company, versus the full nine month period in 2017, (ii) depreciation of the building and fixtures related to the stores acquired in 2016, (iii) the expansion of the Bolingbrook store, and (iv) amortization of the in-place leases related to the stores acquired in 2016.

~~General and administrative expenses increased from $1,055,014 during the period January 19, 2016 to September 30, 2016 to $1,489,566~~$62,218 during the nine months ended September 30, ~~2017, an increase of $434,552, or 41.2%. The change was primarily attributable to~~2022.

Operating Expenses

Total operating expenses increased ~~legal expenses in connection with our transformation~~ from ~~an investment company to an operating company. Increased expenses for payroll, state taxes, stockholder communications and vice president level employee acquisition also contributed to the change.~~

~~Business development and store acquisition related costs decreased from $397,570 during the period January 19, 2016 to September 30, 2016 to $14,295~~$5,864,637 during the nine months ended September 30, ~~2017.~~ 2021 to $6,206,915 during the nine months ended September 30, 2022, an increase of 5.8%, or $342,278, which was primarily attributable to an increase in store level expenses and general and administrative expenses. Store operating expenses increased from $2,831,693 during the nine months ended September 30, 2021 to $3,053,481 during the nine months ended September 30, 2022, an increase of 7.8%, or $221,788. The increase in store operating expenses was due primarily to increased expenses for utilities, employment costs, and real estate property taxes.

Depreciation and amortization decreased from $1,221,938 during the nine months ended September 30, 2021 to $1,214,344 during the nine months ended September 30, 2022, a decrease of 0.6%, or $7,594.

General and administrative expenses increased from $1,804,371 during the nine months ended September 30, 2021 to $1,892,382 during the nine months ended September 30, 2022, an increase of 4.9%, or $88,011. The increase in general and administrative expenses during this period are primarily attributable to increased professional fees.

Business development, capital raising, store acquisition, and third-party management marketing expenses increased from $6,635 during the nine months ended September 30, 2021 to $46,708 during the nine months ended September 30, 2022. These costs primarily consist of costs incurred in connection with business development, capital raising, and future potential store ~~acquisition-related~~acquisitions, and third-party management marketing expenses. Business development costs are typically non-recurring and fluctuate based on periodic business development and acquisition activity.

~~Other~~Operating Income

As a result of the operating effects noted above, operating income ~~(expense)~~

~~Interest expense on loans~~ increased from ~~$236,511 during the period January 19, 2016 to September 30, 2016 to $660,626~~$1,882,590 during the nine months ended September 30, ~~2017. The increase was primarily attributable~~2021 to ~~a higher amount of outstanding debt~~$2,679,226‭‬ during the nine months ended September 30, ~~2017 as compared to the period January 19, 2016 to September 30, 2016.~~2022, an increase of 42.3%, or $796,636.‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬

~~Dividend and interest~~Other income ~~was $133,559 during the period January 19, 2016 to September 30, 2016 and $41,965~~(expense)

Interest expense on debt decreased from $828,567 during the nine months ended September 30, ~~2017. The~~2021 to $572,174 during the nine months ended September 30, 2022. This decrease was ~~primarily~~ attributable to a lower principal balance on outstanding debt, lower amortization of loan procurement costs, and to the ~~sale~~change in fair value of ~~certain investment~~the interest rate cap. The cash payments for the $20 million loan remain the same every month until June 2036 and are $107,699 per month.

Dividend, interest, and other income was $56,396 during the nine months ended September 30, 2021 and $92,894 during the nine months ended September 30, 2022.

Unrealized gain on marketable equity securities ~~held by~~was $791,189 during the ~~Company.~~nine months ended September 30, 2021 and the unrealized loss on marketable equity securities was $889,885 during the nine months ended September 30, 2022.

Net income (loss)

For the ~~period January 19, 2016 to~~nine months ended September 30, ~~2016, the~~2021, net ~~loss~~income was ~~$180,557,~~$1,901,608, or ~~$0.02~~$0.19 per fully diluted share. For the nine months ended September 30, ~~2017,~~2022, net income was $1,617,271, or $0.15 per fully diluted share.

Distributions and Closing Market Prices

Distributions for the ~~net loss~~three months ended September 30, 2022 and 2021 was ~~$125,524, or $0.02~~$0.0725 and $0.065 per ~~share.~~share, respectively. The Company’s closing market price as of September 30, 2022 and September 30, 2021 was $5.86 and $5.15, respectively. Past market price performance and distribution levels do not guarantee similar results in the future.

Non-GAAP Financial Measures

Funds from Operations (“FFO”) and FFO per share are non-GAAP measures defined by the National Association of Real Estate Investment Trusts (“NAREIT”) and are considered helpful measures of REIT performance by REITs and many REIT analysts. NAREIT defines FFO as a REIT’s net income, excluding gains or losses from sales of property, and adding back real estate depreciation and amortization. FFO and FFO per share are not a substitute for net income or earnings per share. FFO is not a substitute for GAAP net cash flow in evaluating our liquidity or ability to pay dividends, because it excludes financing activities presented on our statements of cash flows. In addition, other REITs may compute these measures differently, so comparisons among REITs may not be helpful. However, the Company believes that to further understand the performance of its stores, FFO should be considered along with the net income and cash flows reported in accordance with GAAP and as presented in the Company’s financial statements.

Adjusted FFO (“AFFO”) ~~represents~~and AFFO per share are non-GAAP measures that represent FFO and FFO per share excluding the effects of business development, capital raising, and acquisition related costs and non-recurring items, which we believe are not indicative of the Company’s operating results. AFFO and AFFO per share are not a substitute for net income or earnings per share. AFFO is not a substitute for GAAP net cash flow in evaluating our liquidity or ability to pay dividends, because it excludes financing activities presented on our statements of cash flows. We present AFFO because we believe it is a helpful measure in understanding our results of operations insofar as we believe that the items noted above that are included in FFO, but excluded from AFFO, are not

indicative of our ongoing operating results. We also believe that the ~~investment~~analyst community considers our AFFO (or similar measures using different terminology) when evaluating us. Because other REITs or real estate companies may not compute AFFO in the same manner as we do, and may use different terminology, our computation of AFFO may not be comparable to AFFO reported by other REITs or real estate companies. However, the Company believes that to further understand the performance of its stores, AFFO should be considered along with the net income and cash flows reported in accordance with GAAP and as presented in the Company’s financial statements.

We believe net operating income or “NOI” is a meaningful measure of operating performance because we utilize NOI in making decisions with respect to, among other things, capital allocations, determining current store values, evaluating store performance, and in comparing period-to-period and market-to-market store operating results. In addition, we believe the investment community utilizes NOI in determining operating performance and real estate values and does not consider depreciation expense because it is based upon historical cost. NOI is defined as net store earnings before general and administrative expenses, interest, taxes, depreciation, and amortization.

NOI is not a substitute for net income, net operating cash flow, or other related GAAP financial measures, in evaluating our operating results.

Self Storage Portfolio

The following discussion and analysis of our same-store ~~self storage operations and our combined same-store and non same-store (“Combined store”)~~ self storage operations are presented on a comparative basis for the ~~three and~~ nine months ended September 30, ~~2016 and September 30, 2017, respectively.~~2022.

GLOBAL SELF STORAGE STORES


		Year Store	Number		Net Leasable		September 30, 2022 Square Foot			September 30, 2021 Square Foot
Property(1)	Address	Opened / Acquired	of Units		Square Feet		Occupancy %			Occupancy %
OWNED STORES
SSG BOLINGBROOK LLC	296 North Weber Road, Bolingbrook, IL 60440	1997 / 2013		807		113,700		88.0	%		96.5	%
SSG CLINTON LLC	6 Heritage Park Road, Clinton, CT 06413	1996 / 2016		182		30,408		85.9	%		90.0	%
SSG DOLTON LLC	14900 Woodlawn Avenue, Dolton, IL 60419	2007 / 2013		652		86,590		89.7	%		92.7	%
SSG FISHERS LLC	13942 East 96th Street, McCordsville, IN 46055	2007 / 2016		541		76,360		91.5	%		93.4	%
SSG LIMA LLC	1910 West Robb Avenue, Lima, OH 60419	1996 / 2016		756		96,883		89.4	%		93.4	%
SSG MERRILLVILLE LLC	6590 Broadway, Merrillville, IN 46410	2005 / 2013		568		80,970		93.8	%		96.9	%
SSG MILLBROOK LLC	3814 Route 44, Millbrook, NY 12545	2008 / 2016		260		24,482		93.1	%		97.1	%
SSG ROCHESTER LLC	2255 Buffalo Road, Rochester, NY 14624	2010 / 2012		645		68,161		88.8	%		94.5	%
SSG SADSBURY LLC	21 Aim Boulevard, Sadsburyville, PA 19369	2006 / 2012		694		78,875		88.2	%		94.4	%
SSG SUMMERVILLE I LLC	1713 Old Trolley Road, Summerville, SC 29485	1990 / 2013		569		76,460		91.1	%		92.7	%
SSG SUMMERVILLE II LLC	900 North Gum Street, Summerville, SC 29483	1997 / 2013		246		42,860		92.7	%		94.1	%
SSG WEST HENRIETTA LLC	70 Erie Station Road, West Henrietta, NY 14586	2016 / 2019		480		55,550		83.3	%		78.8	%
TOTAL/AVERAGE SAME-STORES				6,400		831,299		89.6	%		93.3	%

MANAGED STORES
TPM EDMOND LLC	14000 N I 35 Service Rd, Edmond, OK 73013	2015 / 2019		619		137,318		93.5	%		94.8	%
TOTAL/AVERAGE MANAGED STORES				619		137,318		93.5	%		94.8	%

TOTAL/AVERAGE ALL OWNED/MANAGED STORES				7,019		968,617		90.2	%		93.5	%

Year Store

Number

Net Leasable

September 30, 2017 Square Foot

September 30, 2016 Square Foot

Property

Address

Opened / Opened

of Units

Square Feet

Occupancy %

Occupancy %

SSG BOLINGBROOK LLC

296 North Weber Road, Bolingbrook, IL 60440

1997 / 2013

781

111,200

91.8
%

95.6
%
SSG DOLTON LLC

14900 Woodlawn Avenue,   Dolton, IL 60419

2007 / 2013

652

86,950

92.7
%

94.2
%
SSG MERRILLVILLE LLC

6590 Broadway, Merrillville, IN 46410

2005 / 2013

491

66,820

98.1
%

92.5
%
SSG ROCHESTER LLC

2255 Buffalo Road, Rochester, NY 14624

2010 / 2012

648

68,017

88.2
%

88.3
%
SSG SADSBURY LLC

21 Aim Boulevard, Sadsburyville, PA 19369

2006 / 2012

693

78,842

90.5
%

91.1
%
SSG SUMMERVILLE I LLC

1713 Old Trolley Road, Summerville, SC 29485

1990 / 2013

557

72,700

91.5
%

86.3
%
SSG SUMMERVILLE II LLC

900 North Gum Street, Summerville, SC 29483

1997 / 2013

248

41,665

90.9
%

92.4
%
TOTAL/AVERAGE
   SAME-STORES

4,070

526,194

92.0
%

91.4
%

SSG FISHERS LLC

13942 East 96th Street, McCordsville, IN 46055

2007 / 2016

415

82,606

92.5
%

83.8
%
SSG LIMA LLC

1910 West Robb Avenue, Lima, OH 60419

1996 / 2016

733

97,635

94.7
%

98.3
%
SSG CLINTON LLC

6 Heritage Park Road, Clinton, CT 06413

1996 / 2016

182

30,338

84.5
%

84.6
%
SSG MILLBROOK LLC

3814 Route 44, Millbrook, NY 12545

2008 / 2016

142

13,391

86.9
%

90.7
%
TOTAL/AVERAGE NON
   SAME-STORES

1,472

223,970

92.1
%

90.7
%

TOTAL/AVERAGE ALL
   STORES

5,542

750,164

92.0
%

91.7
%

(1)

Each store is directly owned or managed by the Company’s wholly owned subsidiary listed in the table.

Same-store occupancy includes the impact from expansion and redevelopment projects at stores. Our Bolingbrook store expansion project was completed during mid-November 2016 which added 304 climate-controlled and traditional storage units totaling 43,750 leasable square feet to the store bringing the total to 781 storage units and 111,200 leasable square feet. Upon completion of the Bolingbrook store expansion project, its area occupancy dropped from mid-90% to approximately 60%.

Certain stores’ leasable square feet in the chart above includes outside auto/RV/boat storage space: approximately 13,000 square feet at SSG Sadsbury LLC; ~~11,300~~15,700 square feet at SSG Bolingbrook LLC; ~~9,900~~9,000 square feet at SSG Dolton LLC; ~~11,170~~1,000 square feet at SSG Merrillville LLC; ~~5,300~~7,200 square feet at SSG Summerville II ~~LLC;~~LLC and ~~9,270~~8,750 square feet at SSG Clinton LLC. For SSG Lima LLC, included is approximately ~~12,683~~7,700 square feet of non-storage commercial and student housing space. Approximately ~~34%~~33% of our total available units are climate-controlled, ~~58%~~59% are traditional drive-up storage, and 8% are ~~parking.~~outdoor parking storage for boats, cars and recreational vehicles.

Same-Store Self Storage Operations

We consider our same-store portfolio to consist of only those stores owned and operated on a stabilized basis at the beginning and at the end of the applicable periods presented. We consider a store to be stabilized once it has achieved an occupancy rate that we believe, based on our assessment of market-specific data, is representative of similar ~~self-storage~~self storage assets in the applicable market for a full year measured as of the most recent January 1 and has not been significantly damaged by natural disaster or undergone significant ~~renovation. Same-store occupancy includes the impact from expansion projects at those stores.~~renovation or expansion. We believe that same-store results are useful to investors in evaluating our performance because they provide information relating to changes in store-level operating performance without taking into account the effects of acquisitions, dispositions, or new ground-up developments. At September 30, ~~2017,~~2022, we owned ~~seven~~twelve same-store ~~facilities~~properties and ~~four~~zero non same-store ~~facilities.~~properties. The Company believes that, by providing same-store results from a stabilized pool of stores, with accompanying operating metrics including, but not limited to, variances in occupancy, rental revenue, operating expenses, and NOI, ~~etc.,~~ stockholders and potential investors are able to

evaluate operating performance without the effects of non-stabilized occupancy levels, rent levels, expense levels, acquisitions, or completed developments. Same-store results should not be used as a basis for future same-store performance or for the performance of the Company’s stores as a whole.

For comparability purposes, the same-store information presented for the period from January 1, 2016 to January 18, 2016 under investment company accounting and for the period from January 19, 2016 through September 30, 2016 under operating company accounting are presented combined for the first nine months of 2016 in the discussion that follows. Management believes this presentation is more meaningful to investors as there was no significant change in same-store revenue streams and other financial metrics or the same-store non-financial statistical information as a result of our change in status from an investment company to an operating company.

Same-store occupancy at September 30, ~~2017 increased~~2022 decreased by ~~0.6%~~3.7% to ~~92.0%~~89.6% from ~~91.4%~~93.3% at September 30, ~~2016. This includes~~2021. As of November 8, 2022, occupancy at the ~~impact from the Bolingbrook expansion project completed in November 2016.~~Company’s same-store properties was 90.6%.

~~We grew our top-line results~~Same-store revenues increased by ~~increasing same-store revenues by 11.8%~~13.0% and ~~11.1%~~14.7% for the three and nine months ended September 30, ~~2017, respectively,~~2022 versus the same periods in ~~2016.~~2021. Same-store cost of operations increased by ~~18.6%~~7.5% and ~~8.2%~~7.8% for the three and nine months ended September 30, ~~2017, respectively,~~2022 versus the same periods in ~~2016.~~2021. Same-store NOI increased by ~~7.5%~~16.0% and ~~13.1%~~18.8% for the three and nine months ended September 30, ~~2017, respectively,~~2022 versus the same periods in ~~2016.~~2021. The increase in same-store NOI was due primarily to an increase in rental and occupancy rates and net leased square footage. Certain of our stores in Illinois, Indiana, and South Carolina were our strongest market performers as far as occupancy, revenue, and NOI growth.revenues.

We believe that our results were driven by, among other things, our internet and digital marketing initiatives which helped our same-store overall average occupancy maintain at or around ~~92%~~90% as of September 30, ~~2017.~~2022. Also, contributing to our results were our customer service efforts which we believe were essential in building local brand loyalty, resulting in strong referral and word-of-mouth market demand for our storage units and services. Another contributing factor to our results was our competitor move-in rate metrics analysis which employs internet data scraping and other methods to help keep our storage unit move-in rates “in the market,” and our revenue rate management program which helped increase existing tenant rates while maintaining or building store occupancy.

These results are summarized as follows:


SAME - STORE PROPERTIES	SAME - STORE PROPERTIES													SAME - STORE PROPERTIES

Three Months Ended September 30,		2017			2016			Variance			% Change				2022			2021			Variance			% Change
Revenues		$	1,387,926		$	1,241,531		$	146,395			11.8	%		$	3,064,505		$	2,711,092		$	353,413			13.0	%
Cost of operations		$	568,159		$	479,225		$	88,934			18.6	%		$	1,010,495		$	940,372		$	70,123			7.5	%
Net operating income		$	819,767		$	762,306		$	57,461			7.5	%		$	2,054,010		$	1,770,720		$	283,290			16.0	%
Depreciation and amortization		$	178,597		$	161,000		$	17,597			10.9	%		$	358,392		$	362,839		$	(4,447	)		-1.2	%
Net leasable square footage at period end			526,194			485,874			40,320			8.3	%
Net leasable square footage at period end*																831,299			831,180			119			0.0	%
Net leased square footage at period end			484,066			443,964			40,103			9.0	%			744,818			775,126			(30,308	)		-3.9	%
Overall square foot occupancy at period end			92.0	%		91.4	%		0.6	%		0.7	%			89.6	%		93.3	%		-3.7	%		-4.0	%
Total annualized revenue per leased square foot		$	11.47		$	11.19		$	0.28			2.5	%		$	16.46		$	13.99		$	2.47			17.6	%
Total available leasable storage units			4,070			3,868			202			5.2	%
Total available leasable storage units*																6,400			6,392			8			0.1	%
Number of leased storage units			3,697			3,410			287			8.4	%			5,647			5,884			(237	)		-4.0	%

SAME - STORE PROPERTIES

Nine Months Ended September 30,

2017

2016

Variance

% Change

Revenues

$
3,980,131

$
3,582,052

$
398,079

11.1
%
Cost of operations

$
1,579,267

$
1,459,639

$
119,628

8.2
%
Net operating income

$
2,400,864

$
2,122,413

$
278,451

13.1
%
Depreciation and amortization

$
540,021

$
482,843

$
57,178

11.8
%
Net leasable square footage at period end

526,194

485,874

40,320

8.3
%
Net leased square footage at period end

484,066

443,964

40,103

9.0
%
Overall square foot occupancy at period end

92.0
%

91.4
%

0.6
%

0.6
%
Total annualized revenue per leased square foot

$
10.96

$
10.76

$
0.21

1.9
%
Total available leasable storage units

4,070

3,868

202

5.2
%
Number of leased storage units

3,697

3,410

287

8.4
%


SAME - STORE PROPERTIES

Nine Months Ended September 30,	2022			2021			Variance			% Change
Revenues	$	8,823,923		$	7,690,819		$	1,133,104			14.7	%
Cost of operations	$	3,053,481		$	2,831,693		$	221,788			7.8	%
Net operating income	$	5,770,442		$	4,859,126		$	911,316			18.8	%
Depreciation and amortization	$	1,074,213		$	1,081,163		$	(6,950	)		-0.6	%
Net leasable square footage at period end*		831,299			831,180			119			0.0	%
Net leased square footage at period end		744,818			775,126			(30,308	)		-3.9	%
Overall square foot occupancy at period end		89.6	%		93.3	%		-3.7	%		-4.0	%
Total annualized revenue per leased square foot	$	15.80		$	13.23		$	2.57			19.4	%
Total available leasable storage units*		6,400			6,392			8			0.1	%
Number of leased storage units		5,647			5,884			(237	)		-4.0	%

* From time to time, as guided by market conditions, net leasable square footage and total available leasable storage units at our properties may increase or decrease as a result of consolidation, division or reconfiguration of storage units. Similarly, leasable square footage may increase or decrease due to expansion or redevelopment of our properties.

The following table presents a reconciliation of same-store net operating income to net income as presented on our consolidated statements of operations for the periods ~~indicated:~~indicated (unaudited):

										For the Period
										January 19, 2016			For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	For the Three Months Ended September 30,						Nine Months Ended			through			2022			2021			2022			2021
	2017			2016			September 30, 2017			September 30, 2016
Net loss	$	(129,346	)	$	(217,372	)	$	(125,524	)	$	(180,557	)
Net income													$	929,864		$	629,062		$	1,617,271		$	1,901,608
Adjustments:
Management fees and other income														(21,907	)		(19,426	)		(62,218	)		(56,408	)
General and administrative		640,566			393,561			1,489,566			1,055,014			560,675			594,547			1,892,382			1,804,371
Depreciation and amortization		439,342			236,503			1,341,261			595,478			404,961			409,763			1,214,344			1,221,938
Business development and property acquisition costs		105			238,537			14,295			397,570
Dividend and interest income		(15,591	)		(46,905	)		(41,965	)		(133,559	)
Business development														4,598			1,797			46,708			6,635
Dividend and interest														(46,846	)		(19,533	)		(92,894	)		(56,396	)
Unrealized loss (gain) on marketable equity securities														59,512			(81,992	)		889,885			(791,189	)
Interest expense		220,209			219,859			660,626			236,511			163,153			256,502			572,174			828,567
Non same-store revenues		(544,881	)		(107,107	)		(1,547,723	)		(107,107	)
Non same-store cost of operations		204,383			43,786			600,424			43,786
Other real estate expenses		4,980			1,444			9,904			2,196
Combined adjustment for the period January 1, 2016 to January 18. 2016 ⁽¹⁾	—			—			—				213,081
Gain on Paycheck Protection Program (PPP) loan forgiveness													—			—				(307,210	)	—
Total same-store net operating income	$	819,767		$	762,306		$	2,400,864		$	2,122,413		$	2,054,010		$	1,770,720		$	5,770,442		$	4,859,126

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,						For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2017			2016			2017			2016			2022			2021			2022			2021
Same-store revenues	$	1,387,926		$	1,241,531		$	3,980,131		$	3,582,052		$	3,064,505		$	2,711,092		$	8,823,923		$	7,690,819
Same-store cost of operations		568,159			479,225			1,579,267			1,459,639			1,010,495			940,372			3,053,481			2,831,693
Total same-store net operating income	$	819,767		$	762,306		$	2,400,864		$	2,122,413		$	2,054,010		$	1,770,720		$	5,770,442		$	4,859,126

⁽¹⁾ For comparability purposes, the same-store information presented for the period from January 1, 2016 to January 18, 2016 under investment company accounting and for the period from January 19, 2016 through September 30, 2016 under operating company accounting are presented combined for the first nine months of 2016. Management believes this presentation is more meaningful to investors as there was no significant change in same-store revenue streams and other financial metrics or the same-store non-financial statistical information as a result of our change in status from an investment company to an operating company. The following table presents the combined adjustment for the period January 1, 2016 to January 18, 2016.

Net income

$
45,399

Adjustments:

General and administrative

111,247

Depreciation and amortization

54,084

Dividend and interest income

(2,958
)
Other property expenses

5,309

Combined adjustment for the period January 1, 2016 to January 18. 2016

$
213,081

Analysis of Same-Store Revenue

For the three and nine months ended September 30, ~~2017, the 11.8%~~2022, same-store revenue increased 13.0%, or ~~$146,395,~~$353,412, and ~~11.1%~~14.7%, or ~~$398,079, revenue increases for those~~$1,133,104, respectively, versus the same periods ~~respectively, were~~in 2021, which was attributable to, among other things, ~~a 9% increase in net leased square footage. The increase in net leased square footage was due primarily to a successful lease-up of our Bolingbrook store expansion,~~consistent rent collections and ~~to the continuing successful lease-up of our available storage units in our Illinois, Indiana, Pennsylvania, New York, and South Carolina stores.~~increased rental rates. Same-store average overall square foot occupancy for all of the Company’s ~~stores combined increased~~same-store properties decreased to ~~92.0%~~89.6% at September 30, ~~2017, up~~2022, down from ~~91.4%~~93.3% at September 30, ~~2016, primarily due to~~2021. As of November 8, 2022, occupancy at the ~~aforementioned successful lease-up activity at those stores.~~Company’s same-store properties was 90.6%.

We believe that our focus on maintaining high ~~occupancies help~~occupancy helps us to maximize rental income at our ~~rental income.~~properties. We seek to maintain an average square foot occupancy level at or above 90% by regularly adjusting the rental rates and promotions offered to attract new tenants as well as adjusting our online marketing efforts in seeking to generate sufficient move-in volume to replace tenants that vacate. Demand may fluctuate due to various local and regional factors, including the overall economy. Demand is generally higher in the summer months than in the winter months and, as a result, rental rates charged to new tenants are typically higher in the summer months than in the winter months.

As of September 30, 2022, we observed no material degradation in rent collections. However, we believe that our bad debt losses could increase from historical levels, due to (i) cumulative stress on our customers’ financial capacity and (ii) reduced rent recoveries from auctioned units.

We may experience a change in the move-out patterns of our long-term customers due to economic uncertainty. This could lead to lower occupancies and rent “roll down” as long-term customers are replaced with new customers at lower rates.

We currently expect rental income growth, if any, to come from a combination of the following: (i) continued existing tenant rent increases, (ii) higher rental rates charged to new tenants, (iii) lower promotional discounts, and (iv) higher occupancies. Our future rental income growth will likely also be dependent upon many factors for each market that we operate in, including, among other things, demand for self storage space, the level of competitor supply of self storage space, and the average length of stay of our tenants. Increasing existing tenant rental rates, generally on an annual basis, is a key component of our revenue growth. We typically determine the level of rental increases based upon our expectations regarding the impact of existing tenant rate increases on incremental move-outs. We currently expect existing tenant rent increases infor the remainder of ~~2017~~2022, if any, to be ~~slightly less than~~similar to the prior year.

~~We believe that the current~~29

It is difficult to predict trends in move-in, move-out, in place contractual rents, and occupancy ~~levels are consistent with our current expectation of continued revenue growth. However, such~~levels. Current trends, when viewed in the short-term, are volatile and not necessarily predictive of our revenues going forward because they may be subject to many short-term factors. Such factors include, among others, the impact of the COVID-19 pandemic, initial move-in rates, seasonal factors, unit size and geographical mix of the specific tenants moving in or moving out, the length of stay of the tenants moving in or moving out, changes in our pricing strategies, and the degree and timing of rate increases previously passed to existing tenants.

Importantly, we continue to refine our ongoing revenue rate management program which includes regular internet data scraping of local competitors’ prices. We do this in seeking to maintain our competitive market price advantage for our various sized storage units at our stores. This program helps us in seeking to maximize each store’s occupancies and our self storage revenue and NOI. We believe that, through our various marketing initiatives, we can continue to attract high quality, long term tenants who we expect will be storing with us for years. As of September 30, ~~2017,~~2022, our average tenant duration of stay iswas approximately ~~2.8~~3.3 years, up from approximately ~~2.6~~3.0 years as of September 30, ~~2016.~~2021.

Analysis of Same-Store Cost of Operations

For the three and nine months ended September 30, ~~2017,~~2022, same-store cost of operations increased ~~18.6%~~7.5%, or ~~$88,934,~~$70,123, and ~~8.2%~~7.8%, or ~~$119,628,~~$221,788, respectively, ~~compared to~~versus the same periods in ~~2016.~~2021. This increase in same-store cost of operations for the the three months ended September 30, 2022 was due primarily to increased ~~store level~~expenses for employment costs and ~~increased~~real estate property ~~taxes and administrative expenses, which were partially offset by reduced advertising and marketing costs and repair and maintenance expenses.~~taxes.

On-site store manager, regional manager, and district manager payroll expense increased ~~31.1%~~13.8%, or ~~$43,186,~~$37,704, and 4.2%, or $35,423, respectively, for the three ~~months ended September 30, 2017 versus the same period in 2016,~~ and ~~27.4%, or $109,577, for the~~ nine months ended September 30, ~~2017~~2022 versus the same ~~period~~periods in ~~2016. This increase was~~2021. The increases were due primarily to ~~an increase~~routine employee hiring and inflationary increases in ~~the number of same-store manager, regional manager, and a vice president - operations level employee, wage increases, and higher employee health plan expenses.~~compensation rates for existing employees. We currently expect inflationary increases in compensation rates for existing employees and other increases in compensation costs as we potentially add new stores.

Store property tax expense increased ~~18.1%~~4.2%, or ~~$28,332,~~$14,632, and ~~8.4%~~9.1%, or ~~$37,754,~~$87,992, respectively, for the three and nine months ended September 30, ~~2017, respectively,~~2022 versus the same periods in ~~2016, primarily due~~2021. When compared to ~~higher assessed values. We~~store property tax expense for the three months ended September 30, 2022, we currently expect store property tax expense to ~~increase at a somewhat greater rate during~~remain consistent for the remainder of ~~2017 and in 2018, due to an expected phaseout of~~2022. See the ~~Class 8 tax incentive granted to SSG~~section titled “Property Tax Expenses at Dolton, ~~LLC and~~ ~~higher assessed values due to planned expansions~~.IL” for additional detail.

Repairs and maintenance expense ~~increased 24.7%~~decreased 34.3%, or ~~$5,787,~~$13,442, and ~~decreased 22.6%~~increased 21.5%, or ~~$19,539,~~$20,153, respectively, for the three and nine months ended September 30, ~~2017~~2022 versus the same periods in ~~2016.~~2021. These expenses ~~were comprised mostly of our ongoing LED lighting replacement program~~decreased during ~~2016, which continues into 2017 at a somewhat lesser rate as our stores become fully converted to LED. Going forward into~~ the remainder of 2017, we anticipate continued focus on our LED light replacement program and other property and energy efficiency conversions as applicable. At our stores fully converted to LED lighting, we have realized utilities expense savings of 10% to 40%, depending onthree months ended September 30, 2022 versus the ~~store,~~same period in 2021 primarily due to ~~lower kilowatt per hour usage.~~a decrease in one-off maintenance expenses during the three months ended September 30, 2022. The expenses increased during the nine months ended September 30, 2022 primarily due to inflationary increases in the cost of services.

Our utility expenses are currently comprised of electricity, oil, and gas costs, which vary by store and are dependent upon energy prices and usage levels. Changes in usage levels are driven primarily by weather and temperature. Also, affecting our utilities expenses over time is our ~~aforementioned~~ ongoing LED light replacement program at all of our stores which has already resulted in lower electricity usage. ~~Utility~~Utilities expense increased ~~9.2%~~10.5%, or ~~$2,806,~~$5,659, and ~~11.2%~~16.7%, or ~~$10,739,~~$30,693, respectively, for the three and nine months ended September 30, ~~2017~~2022 versus the same periods in ~~2016,~~2021, primarily due to ~~increased~~rising costs for energy and higher energy usage ~~due to 2017’s harsher winter compared to 2016’s milder winter in~~at most of our ~~stores’ areas which was partially offset by~~stores during the ~~benefit of lower electricity usage due to our LED light replacement program.~~three and nine months ended September 30, 2022 versus the same periods in 2021. It is difficult to estimate future utility costs because weather, temperature, and energy prices are volatile and unpredictable. However, based upon current trends and expectations regarding commercial electricity rates, we currently expect inflationary increases in rates combined with lower usage resulting in ~~slightly~~ higher net utility costs infor the remainder of ~~2017.~~2022.

Landscaping expenses, which include snow removal costs, ~~decreased 1.3%~~increased 20.6%, or ~~$214,~~$5,425, and ~~26.8%~~1.8%, or ~~$15,815,~~$2,484, respectively, for the three and nine months ended September 30, ~~2017~~2022 versus the same periods in ~~2016,~~2021. The increase in landscaping expense during the three and nine months ended September 30, 2022 versus the same periods in 2021 was primarily due an increase to ~~lower snow removal costs.~~one-off expenses during the three months ended September 30, 2022. Landscaping expense levels are dependent upon many factors such as weather conditions, which can impact landscaping needs including, among other things, snow removal, inflation in material and labor costs, and random events. We currently expect inflationary increases in landscaping expense infor the remainder of ~~2017,~~2022, excluding snow removal expense, which is primarily weather dependent and unpredictable.

Marketing expense is comprised principally of internet advertising and the operating costs of our 24/7 kiosk and telephone call and reservation center. Marketing expense varies based upon demand, occupancy levels, and other factors. Internet advertising, in particular, can increase or decrease significantly in the short term in response to these factors. Marketing expense decreased 9.2%, or $4,867, and 22.3%, or $38,550 for the three and nine months ended September 30, 2017 versus the same periods in 2016, primarily due to the decreased internet advertising expenses and the one-time costs during 2016 associated with the production and addition of size estimator and locations videos to our stores’ website, ~~www.GlobalSelfStorage.us. Based upon current trends in move-ins, move-outs, and occupancies, we currently expect marketing expense to increase at a nominal rate in the remainder of 2017.~~

Other direct store costs include general and administrative expenses incurred at the stores, such as store insurance, business license costs, bank charges related to processing the stores’ cash receipts, credit card fees, and the cost of operating each store’s rental office including supplies and telephone data communication lines. These costs (primarily store property insurance) increased 4.8%, or $1,708, and 13.1%, or $15,254 for the three and nine months ended September 30, 2017 versus the same periods in 2016. Increased store level cost efficiencies and fewer tenants’ stored items auctions contributed to the decreased expenses, which were partially offset by increases in our credit card or merchant fees. Credit card fees increased due to a higher proportion of rental payments being received through credit cards, which is one of the results of our initiatives in seeking to build a higher quality overall tenant base. We currently expect moderate increases in other direct store costs in the remainder of 2017.

~~Combined Same-Store and Non Same-Store Self Storage Operations~~

At September 30, 2017, we owned seven same-store facilities and four non same-store facilities. The non same-store facilities are SSG Fishers LLC, SSG Lima LLC, SSG Clinton LLC, and SSG Millbrook LLC.

For comparability purposes, the Combined store information presented for the period from January 1, 2016 to January 18, 2016 under investment company accounting and for the period from January 19, 2016 through September 30, 2016 under operating company accounting are presented combined for the first nine months of 2016 in the discussion that follows. Management believes this presentation is more meaningful to investors as there was no significant change in Combined store revenue streams and other financial metrics or the Combined store non-financial statistical information as a result of our change in status from an investment company to an operating company.

Combined store average overall square foot occupancy at September 30, 2017 increased by 0.6% to 92.0% from 91.4% at September 30, 2016. This includes the impact from our Bolingbrook store expansion project completed during the fourth quarter of 2016.

We grew our top-line results by increasing Combined store revenues by 43.3% and 49.8% for the three and nine months ended September 30, 2017 versus the same periods in 2016. Combined store cost of operations increased by 47.7% and 45.0% for the three and nine months ended September 30, 2017 versus the same periods in 2016. Combined store NOI increased by 40.5% and 53.2% for the three and nine months ended September 30, 2017 versus the same periods in 2016.

We believe that our results were driven by, among other things, our internet and digital marketing initiatives, drive-by curb appeal, and superior roadside signage which helped deliver new tenant inquiries and enabled our Combined store overall average occupancy to maintain at or above 90% as of September 30, 2017. Also, contributing to our strong results were our customer service efforts which we believe were essential in building local brand loyalty resulting in referral and word-of-mouth market demand for our storage units and services.

~~These results are summarized as follows:~~

COMBINED SAME - STORE AND NON SAME - STORE PROPERTIES

Three Months Ended September 30,

2017

2016

Variance

% Change

Revenues

$
1,932,807

$
1,348,638

$
584,169

43.3
%
Cost of operations

$
772,540

$
523,008

$
249,532

47.7
%
Net operating income

$
1,160,267

$
825,630

$
334,637

40.5
%
Depreciation and amortization

$
381,269

$
185,775

$
195,494

105.2
%
Net leasable square footage at period end

750,163

652,813

97,350

14.9
%
Net leased square footage at period end

689,932

596,374

93,558

15.7
%
Overall square foot occupancy at period end

92.0
%

91.4
%

0.6
%

0.7
%
Total available leasable storage units

5,542

4,973

569

11.4
%
Number of leased storage units

5,031

4,419

612

13.8
%

COMBINED SAME - STORE AND NON SAME - STORE PROPERTIES

Nine Months Ended September 30,

2017

2016

Variance

% Change

Revenues

$
5,527,855

$
3,689,158

$
1,838,697

49.8
%
Cost of operations

$
2,179,689

$
1,503,424

$
676,265

45.0
%
Net operating income

$
3,348,166

$
2,185,734

$
1,162,432

53.2
%
Depreciation and amortization

$
1,167,476

$
507,618

$
659,858

130.0
%
Net leasable square footage at period end

750,163

652,813

97,350

14.9
%
Net leased square footage at period end

689,932

596,374

93,558

15.7
%
Overall square foot occupancy at period end

92.0
%

91.4
%

0.6
%

0.7
%
Total available leasable storage units

5,542

4,973

569

11.4
%
Number of leased storage units

5,031

4,419

612

13.8
%

The following table presents a reconciliation of combined same-store and non same-store net operating income to net income as presented on our consolidated statements of operations for the periods indicated:

For the Period

January 19, 2016

For the Three Months Ended September 30,

Nine Months Ended

through

2017

2016

September 30, 2017

��
September 30, 2016

Net loss

$
(129,346
)

$
(217,372
)

$
(125,524
)

$
(180,557
)
Adjustments:

General and administrative

640,566

393,561

1,489,566

1,055,014

Depreciation and amortization

439,342

236,503

1,341,261

595,478

Business development and property acquisition costs

105

238,537

14,295

397,570

Dividend and interest income

(15,591
)

(46,905
)

(41,965
)

(133,559
)
Interest expense

220,209

219,859

660,626

236,511

Other real estate expenses

4,982

1,447

9,907

2,196

Combined adjustment for the period January 1, 2016 to January 18. 2016 ⁽¹⁾

—

—

—

213,081

Total combined same-store and non same-store net operating income

$
1,160,267

$
825,630

$
3,348,166

$
2,185,734

For the Three Months Ended September 30,

For the Nine Months Ended September 30,

2017

2016

2017

2016

Combined same-store and non same-store revenues

$
1,932,807

$
1,348,638

$
5,527,855

$
3,689,158

Combined same-store and non same-store cost of operations

772,540

523,008

2,179,689

1,503,424

Total combined same-store and non same-store net operating income

$
1,160,267

$
825,630

$
3,348,166

$
2,185,734

⁽¹⁾ For comparability purposes, the combined same-store and non same-store information presented for the period from January 1, 2016 to January 18, 2016 under investment company accounting and for the period from January 19, 2016 through September 30, 2016 under operating company accounting are presented combined for the first nine months of 2016. Management believes this presentation is more meaningful to investors as there was no significant change in combined same-store and non same-store revenue streams and other financial metrics or the combined same-store and non same-store non-financial statistical information as a result of our change in status from an investment company to an operating company. The following table presents the combined adjustment for the period January 1, 2016 to January 18, 2016.

~~Analysis of Combined Same-Store and Non Same-Store Revenue~~

For the three and nine months ended September 30, 2017, the 43.3%, or $584,169, and 49.8%, or $1,838,697, revenue increases for those periods, respectively, versus the same periods in 2016, were attributable to, among other things, a 15.7% increase in net leased square footage and to the results of our revenue rate management program of raising existing tenant rates. This increase in net leased square feet, as a result of our Fishers, IN, Lima, OH, Clinton, CT, and Millbrook, NY acquisitions and our expansion at our Bolingbrook, IL store, is currently expected to positively affect Combined store revenues for the remainder of 2017. Our lower year-over-year total annualized revenue per leased square foot number was primarily due to some of the larger, new store acquisitions offering much lower cost, non-climate-controlled square feet (for example, our Lima acquisition) versus the rest of our store portfolio.

~~We believe that high occupancies help maximize our rental income. We seek to maintain an average square~~ ~~foot occupancy level~~ at or above 90% by regularly adjusting the rental rates and promotions offered to attract new tenants as well as adjusting our marketing efforts on the internet in seeking to generate sufficient move-in volume to replace tenants that vacate. Demand may fluctuate due to various local and regional factors, including the overall economy. Demand is typically higher in the summer months than in the winter months and, as a result, rental rates charged to new tenants are typically higher in the summer months than in the winter months.

We currently expect rental income growth, if any, to come from a combination of the following: (i) continued existing tenant rent increases, (ii) higher rental rates charged to new tenants, (iii) lower promotional discounts, and (iv) higher occupancies. Our future rental income growth will likely also be dependent upon many factors for each market that we operate in, including demand for self storage space, the level of competitor supply of self storage space, and the average length of stay of our tenants. Increasing existing tenant rental rates, generally on an annual basis, is a key component of our revenue growth. We typically determine the level of rental increases based upon our expectations regarding the impact of existing tenant rate increases on incremental move-outs. We currently expect existing tenant rent increases in the remainder of 2017 to be slightly less than the prior year.

We believe that the current trends in move-in, move-out, in place contractual rents, and occupancy levels are consistent with our current expectation of continued revenue growth. However, such trends, when viewed in the short-term, are volatile and not necessarily be predictive of our revenues going forward because they are subject to many short-term factors. Such factors include, among others, initial move-in rates, seasonal factors, unit size, the geographical mix of the specific tenants moving in or moving out, the length of stay of the tenants moving in or moving out, changes in our pricing strategies, and the degree and timing of rate increases previously passed to existing tenants.

Importantly, we continue to refine our ongoing revenue rate management program which includes regular internet data scraping of local competitors’ prices. We do this in seeking to maintain our competitive market price advantage for our various sized storage units at our stores. This program helps us seek to maximize each store’s occupancies and our self storage revenue and NOI. We believe that through our various marketing initiatives, we can seek to continue to attract high quality, long term tenants who we expect will be storing with us for years. As of September 30, 2017, our average tenant duration of stay is approximately 2.8 years, ~~up from approximately 2.6 years~~ ~~as of September 30, 2016.~~

~~Analysis of Combined Same-Store and Non Same-Store Cost of Operations~~

~~Combined store cost of operations increased 47.7%, or $249,532, and 45.0%, or $676,265, for the three and nine months ended September 30, 2017 versus the same periods in 2016.~~

This increase in Combined store cost of operations was due primarily to increased store level employment costs including rising employee health plan expenses and increased property taxes and administrative expenses due to our new store acquisitions, which were partially offset by reduced advertising and marketing costs and repair and maintenance expenses.

On-site store manager and supervisory payroll expense increased 72.1%, or $105,983, and 74.2%, or $302,815, for the three and nine months ended September 30, 2017 versus the same periods in 2016. This increase was due primarily to an increase in the number of store level and supervisory employees due to our new store acquisitions, the addition of a vice president - operations level employee, wage increases, and higher employee health plan expenses. We currently expect inflationary increases in compensation rates for existing employees and other increases in compensation costs as we potentially add new stores as well as store, district, and regional managers.

Store property tax expense increased 28.6%, or $50,166, and 31.4%, or $146,663, for the three and nine months ended September 30, 2017 versus the same periods in 2016, primarily due to increased tax expense associated with our new store acquisitions. We currently expect store property tax expense to increase at a somewhat greater rate during the remainder of 2017 and in 2018, due to an expected phaseout of the Class 8 tax incentive granted to SSG Dolton LLC and ~~higher assessed values due to planned store expansions~~.

Repairs and maintenance expense increased 65.5%, or $ 16,383, and decreased 0.8%, or $663, for the three and nine months ended September 30, 2017 versus the same periods in 2016, primarily due to decreased repairs and maintenance costs associated with our new store acquisitions. These 2016 expenses were comprised mostly of our ongoing LED lighting replacement program, which continues in 2017 at a somewhat lesser rate as our stores become fully converted to LED. Going forward into the remainder of 2017, we anticipate continued focus on our LED light replacement program and other property and energy efficiency conversions as applicable. At our stores fully converted to LED lighting, we have realized utilities expense savings of 10% to 40%, depending on the store, due to lower kilowatt per hour usage.

Our utility expenses are currently comprised of electricity, oil, and gas costs, which vary by store and are dependent upon energy prices and usage levels. Changes in usage levels are driven primarily by weather and temperature. Also, affecting our utilities expenses over time is our aforementioned ongoing LED light replacement program at all of our stores which has already resulted in lower electricity usage. Utility expense increased 58.7%, or $20,201, and 65.6%, or $65,133, for the three and nine months ended September 30, 2017 versus the same periods in 2016, primarily due to increased utility costs associated with our new store acquisitions. It is difficult to estimate future utility costs because weather, temperature, and energy prices are volatile and unpredictable. However, based upon current trends and expectations regarding commercial electricity rates, we currently expect inflationary increases in rates combined with lower usage resulting in slightly higher net utility costs in the remainder of 2017.

Landscaping expenses, which include snow removal costs, increased 39.7%, or $6,318, and 13.8%, or $8,132, for the three and nine months ended September 30, 2017 versus the same periods in 2016, primarily due to increased landscaping costs associated with our new store acquisitions. Landscaping expense levels are dependent upon many factors such as weather conditions, which can impact landscaping needs including, among other things, snow removal, inflation in material and labor costs, and random events. We currently expect inflationary increases in landscaping expense in the remainder of 2017, excluding snow removal expense, which is primarily weather dependent and unpredictable.

Marketing expense is comprised principally of internet advertising and the operating costs of our 24/7 kiosk and telephone call and reservation center. Marketing expense varies based upon demand, occupancy levels, and other factors. Internet advertising, in particular, can increase or decrease significantly in the short term in response to these factors. Marketing expense increased ~~11.5%~~11.6%, or ~~$6,585,~~$7,081, and 12.8%, or $23,373, respectively, for the three ~~months ended September 30, 2017~~ and ~~increased 8.9%, or $15,893, for the~~ nine months ended September 30, ~~2017~~2022 versus the same periods in ~~2016,~~2021, primarily due to inflationary increases and increased marketing costs ~~associated with our new store acquisitions~~ and ~~to the increased~~ internet advertising ~~expenses and one-time costs associated with the production and addition of size estimator and locations videos to our stores’ website,~~ ~~www.GlobalSelfStorage.us~~.expenses. Based upon current trends in move-ins, move-outs, and occupancies, we currently expect marketing expense to increase at a ~~somewhat lesser~~nominal rate infor the remainder of ~~2017.~~2022.

Other direct store costs include general and administrative expenses incurred at the ~~stores,~~stores. General expenses include items such as store insurance, business license costs, ~~bank charges related to processing the stores’ cash receipts, credit card fees,~~ and the cost of operating each store’s rental office including supplies and telephone and data communication lines. ~~These costs~~We classify administrative expenses as bank charges related to processing the stores’ cash receipts, credit card fees, repairs and maintenance, utilities, landscaping, alarm monitoring and trash removal. General expenses increased ~~46.2%~~11.1%, or ~~$18,588,~~$7,947, and ~~66.1%~~6.3%, or ~~$79,723,~~$13,931, respectively, for the three and nine months ended September 30, ~~2017~~2022 versus the same periods in 2016, primarily due to increased store property insurance costs associated with our new store acquisitions. We experienced increased credit card or merchant fees, due to a higher proportion of rental payments being received through credit cards, which is one of the results of our initiatives in seeking to build a higher quality overall tenant base. These and other expense increases were partially offset by an increase in store level cost efficiencies and fewer tenants’ stored items auctions. We currently expect moderate increases in other direct store costs in the remainder of 2017.

Depreciation and amortization increased from $185,775 to $381,269, an increase of $195,494, or 105.2%, for the three months ended September 30, 2017 versus the same period in 2016 and increased from $507,618 to $1,167,476, an increase of $659,858, or 130.0%, for the nine months ended September 30, 2017 versus the same period in 2016. The difference is primarily attributable to depreciation of the building and fixtures related to the 2016 store acquisitions, the expansion of the Bolingbrook store, amortization of the in-place leases related to the 2016 store acquisitions, and the shorter 2016 comparable period commencing on January 19, 2016, the effective date of the Company’s deregistration as an investment company, versus a full three and nine month period in 2017.

~~Analysis of General and~~2021. Administrative ~~Expenses~~

General and administrative expenses represent direct and allocated expenses for shared general corporate functions, which are allocated to store operations to the extent they are related to store operations. Such functions include, among other things, data processing, human resources, legal, corporate and operational accounting and finance, marketing, and compensation of senior executives.

Three Months Ended September 30,

2017

2016

Variance

% Change

General and administrative

$
640,566

$
393,561

$
247,005

62.8
%

Nine Months Ended September 30,2017 compared to the Period January 19, 2016 to September 30, 2016

2017

2016

Variance

% Change

General and administrative

$
1,489,566

$
1,055,014

$
434,552

41.2
%

~~General and administrative~~ expenses increased ~~62.8%~~3.7%, or ~~$247,005, for the three months ended September 30, 2017 versus the same period in 2016,~~$6,567, and ~~41.2%~~13.7%, or $434,522, for the nine months ended September 30, 2017 versus the period January 19, 2016 to September 30, 2016. The increase in the general and administrative expense during the nine months ended September 30, 2017 is primarily attributable to an increase in legal, accounting, compliance, NASDAQ listing fees, and investor relations and capital market consulting expenses. The increase in the general and administrative expense during the most recent quarter is primarily attributable to legal expenses in connection with one-off regulatory filings, the creation of the Company’s 2017 Equity Incentive Plan, and comprehensive changes to our charter and bylaws to complete the transformation from an investment company to an operating company. We experienced certain cost reductions due to our transition from an investment company to an operating company, such as costs associated with fund accounting, custodian, registration, and quarterly appraisals. Concomitantly, we experienced increased legal, accounting, regulatory compliance, and investor relations expenses. Going forward, although we currently expect some general and administrative expense reductions associated with our discontinued registration as an investment company, we are incurring, and expect to incur, a number of new expenses related to, among other things, the Company’s current reporting and regulatory requirements. In 2016, the Company incurred fees and expenses of approximately $646,000 associated with the Loan Documents, the majority of which were capitalized and are amortized over the term of the loan.

~~Analysis of Business Development and Store Acquisition Expenses~~

Business development and store acquisition expenses decreased from $238,537 for the three months ended September 30, 2016 and $397,570 during the period January 19, 2016 to September 30, 2016 to $105 and $14,295$79,314, respectively, for the three and nine months ended September 30, ~~2017, respectively. These costs primarily consisted of legal and consulting costs~~2022 versus the same periods in ~~connection with business development activities and future potential store acquisitions. The majority of these~~2021. We experienced an increase in administrative expenses ~~are non-recurring and may fluctuate based on periodic business development and acquisition activities.~~

~~Analysis of Loan Interest and Amortization Expenses~~

~~Loan interest expense payments relating to~~in the ~~aforementioned $20 million loan increased from $219,859 for the three~~nine months ended September 30, ~~2016~~2022 versus the same period in 2021 due primarily to higher utilities, repairs and ~~$236,511 for~~maintenance, and credit card fee expenses. We currently expect moderate increases in direct store costs during the ~~period January 19, 2016 to September 30, 2016 to $220,209~~remainder of 2022.

Depreciation and ~~$660,626~~amortization decreased 1.2%, or $4,447, and 0.6%, or $6,950, respectively, for the three and nine months ended September 30, 2022 versus the same periods in 2021.

Property Tax Expenses at Dolton, IL

Late in the third quarter of 2017, our Dolton, IL property was reassessed by the municipality and separately, our Class 8 tax incentive renewal hearing was held. As a result of those two events, our Dolton, IL property was reassessed at approximately 52% higher and the Class 8 tax incentive was not renewed. These events were applied retroactively to take effect on January 1, 2017. ~~Going forward,~~The combined impact was an increase in property tax expenses from $105,000 during 2016 to $210,000 during 2017, $240,000 during 2018, $395,000 during 2019, $399,000 during 2020, and $417,000 during 2021. The Class 8 tax incentive phased out over the ~~cash payments for this expense are expected to be $69,867 per month until June~~years 2017, 2018, 2019, 2020 and 2021. We currently expect the property tax expenses at ~~which point the monthly interest and amortization payment due is expected~~our Dolton, IL property to increase ~~to $107,699 where it~~by approximately 20% in 2022. Both the property tax reassessment and our Class 8 tax incentive renewal status are currently under appeal. However, there is no guarantee that either the assessment will ~~remain payable every month until June 2036.~~be reduced or our Class 8 tax incentive status will be reinstated.

Analysis of Global Self Storage FFO and AFFO

The following tables present reconciliation and computation of net income to ~~FFO~~funds from operations (“FFO”) and ~~AFFO~~adjusted funds from operations (“AFFO”) and earnings per share to FFO and AFFO per ~~share:~~share (unaudited):

For the Period

January 19, 2016

For the Three Months Ended September 30,

Nine Months Ended

through

2017

2016

September 30, 2017

September 30, 2016

Net loss

$
(129,346
)

$
(217,372
)

$
(125,524
)

$
(180,557
)
Eliminate items excluded from FFO:

Depreciation and amortization

439,342

236,503

1,341,261

595,478

FFO attributable to common stockholders

309,996

19,131

1,215,737

414,921

Adjustments:

Severance related to the departure of a company officer

66,347

—

66,347

—

Business development and property acquisition costs

105

238,537

14,295

397,570

AFFO

$
376,448

$
257,668

$
1,296,379

$
812,491

FFO and FFO as adjusted per weighted average shares
outstanding

Net loss

$
(0.02
)

$
(0.03
)

$
(0.02
)

$
(0.02
)
Eliminate items excluded from FFO:

Depreciation and amortization

0.06

0.03

0.18

0.08

FFO per share attributable to common stockholders

0.04

0.00

0.16

0.06

Adjustments:

Severance related to the departure of a company officer

0.01

—

0.01

—

Business development and property acquisition costs

0.00

0.03

0.00

—

AFFO per share attributable to common stockholders

$
0.05

$
0.03

$
0.17

$
0.06


	For the Three Months Ended September 30,					For the Nine Months Ended September 30,
	2022		2021			2022			2021
Net income	$	929,864	$	629,062		$	1,617,271		$	1,901,608
Eliminate items excluded from FFO:
Unrealized loss (gain) on marketable equity securities		59,512		(81,992	)		889,885			(791,189	)
Depreciation and amortization		404,961		409,763			1,214,344			1,221,938
Gain on PPP loan forgiveness	—		—				(307,210	)	—

FFO attributable to common stockholders		1,394,337		956,833			3,414,290			2,332,357
Adjustments:
Compensation expense related to stock-based awards		39,179		54,092			131,112			140,274
Business development, capital raising, store acquisition, and third-party management marketing expenses		4,598		1,797			46,708			6,635
AFFO attributable to common stockholders	$	1,438,114	$	1,012,722		$	3,592,110		$	2,479,266

Earnings per share attributable to common stockholders - basic	$	0.08	$	0.06		$	0.15		$	0.19
Earnings per share attributable to common stockholders - diluted	$	0.08	$	0.06		$	0.15		$	0.19
FFO per share - diluted	$	0.13	$	0.09		$	0.31		$	0.24
AFFO per share - diluted	$	0.13	$	0.10		$	0.33		$	0.25

Weighted average shares outstanding - basic		10,924,646		10,601,521			10,785,362			9,757,458
Weighted average shares outstanding - diluted		10,978,000		10,635,006			10,842,515			9,787,317

FFO increased 45.7%, or $437,504, and 46.4%, or $1,081,933, respectively, for the three and nine months ended September 30, 2022, versus the same periods in 2021. FFO per diluted share increased from $0.09 per share to $0.13 per share and from $0.24 per share to $0.31 per share, for the three and nine months ended September 30, 2022, respectively, versus the same periods in 2021. AFFO

increased 42.0%, or $425,392, and 44.9%, or $1,112,844, respectively, for the three and nine months ended September 30, 2022, versus the same periods in 2021. AFFO per diluted share increased from $0.10 per share to $0.13 per share and from $0.25 per share to $0.33 per share, for the three and nine months ended September 30, 2022, respectively, versus the same periods in 2021.

Analysis of Global Self Storage Store Expansions and Redevelopment Operations

In addition to actively reviewing a number of store and portfolio acquisition opportunities, we have been working to further develop and expand our current stores.

~~At our Sadsburyville, PA store in May 2015,~~ During the year ended December 31, 2020, we completed ~~construction of~~three expansion / conversion projects at our properties located in Millbrook, NY, McCordsville, IN, and West Henrietta, NY. In the year ending December 31, 2021, we completed a ~~state-of-the-art, all climate-controlled two story storage building, adding 16,756~~conversion project at our property located in Lima, OH.

In 2019, the Company broke ground on the Millbrook, NY expansion, which added approximately 11,800 leasable square feet ~~featuring a number~~ of ~~unique drive-up, climate controlled~~all-climate-controlled units. ~~This expansion appears~~Upon completion in February 2020, the Millbrook, NY store's area occupancy dropped from approximately 88.6% to ~~have been well received by the local market.~~approximately 45.5%. As of September 30, ~~2017,~~2022, the Millbrook, NY store’s total area occupancy was approximately ~~28 months after construction was completed and lease-up commenced, 93.8% of~~93.1%.

In the first ~~floor~~quarter of 2020, the Company began reviewing plans to convert certain commercially-leased space to all-climate-controlled units at the McCordsville, IN property. In April 2020, the Company commenced such conversion, which resulted in a new total of 535 units and ~~93.7% of~~76,360 leasable square feet at the ~~entire building~~McCordsville, IN property. Upon completion in June 2020, the McCordsville, IN store's total area occupancy dropped from what would have been ~~leased. Total entire store occupancy as~~approximately 97.4% to approximately 79.1%. As of September 30, ~~2017~~2022, the McCordsville, IN store’s total area occupancy was ~~90.5%, up from 86.9% as~~approximately 91.5%.

Our West Henrietta, NY store expansion project, completed in August 2020, added approximately 7,300 leasable square feet of ~~December 31, 2016.~~

~~At our Bolingbrook, IL store in November 2016, all site work, construction, and final inspections and approvals~~drive-up storage units. Upon completion of the expansion project, ~~in Bolingbrook, IL were completed. This expansion has added~~West Henrietta, NY store’s total area occupancy dropped from approximately ~~43,750 leasable square feet and 304 of climate-controlled and traditional storage units bringing the total~~89.6% to ~~110,300 leasable square feet and 788 storage units. The project cost~~ approximately ~~$2,600,000, which equates to an all-in cost of approximately $59 per square foot.~~77.9%. As of September 30, ~~2017, 92.3%, or 40,675 square feet, of~~2022, the ~~five-building expansion leasable square feet had been leased and~~West Henrietta, NY store’s total ~~entire store~~area occupancy ~~as of September 30, 2017~~ was ~~91.8%, up from 62.2% as of December 31, 2016.~~

We are currently in the initial stages of the expansion of our Merrillville, IN store that includes the construction of three new traditional drive-up storage unit buildings totaling 13,300 gross square feet. Currently, the approximate budget for this project is $400,000. We commenced this project the first week of October 2017 and currently anticipate that the construction project will proceed accordingly, with construction completion in approximately ~~three to six months. However, there~~83.3%. There is no guarantee that we will ~~complete this project within~~experience demand for the ~~projected timeframe~~West Henrietta, NY expansion or ~~at all.~~

On May 2, 2017, at the Millbrook, NY store, we received all final entitlement approvals from the local planning and zoning boards for construction of a 16,500 gross square feet, two story, all-climate-controlled expansion of the existing store. We currently anticipate that the construction project will proceed accordingly, with construction completion approximately six to nine months from project commencement. However, there is no guarantee that we will ~~commence~~be able to successfully lease-up the expansion to the occupancy level of our other properties.

In 2021, the Company began reviewing plans to convert certain commercially-leased space to 3,000 leasable square feet of all-climate-controlled units at the Lima, OH property. In July 2021, the Company completed such conversion, resulting in a new total of 756 units and 96,883 leasable square feet at the Lima, OH property. Upon completion, total area occupancy was approximately 94.8%. As of September 30, 2022, the Lima, OH store’s total area occupancy was approximately 89.4%. This conversion did not constitute a significant renovation or ~~complete this project in this timeframe or at all.~~expansion because it only added approximately 3,000 leasable square feet of self storage to the property. As such, our Lima, OH property remained a same store property.

Analysis of Realized and Unrealized Gains (Losses)

~~Realized~~Unrealized gains and losses on the Company’s investment in marketable equity securities for the nine ~~month periods~~months ended September 30, ~~2017~~2022 and ~~2016~~2021 were $0a loss of $889,885 and ~~$0,~~gain of $791,189, respectively. As we continue to acquire and/or develop additional stores, as part of the funding for such activities, we ~~plan to~~may liquidate our investment in marketable equity securities ~~holdings~~ and potentially realize gains or losses. As of September 30, ~~2017,~~2022, our cumulative unrealized gain on ~~investment~~marketable equity securities ~~available-for-sale~~ was ~~$696,686.~~

~~Distributions and Closing Market Prices~~

~~Distributions for the three months ended September 30, 2017 totaled $0.065 per share, and distributions~~$1,837,810. There were no realized gains or losses for the nine months ended September 30, ~~2017 totaled $0.195 per share. The Company’s closing market price as of September 30, 2017 was $4.83 and as of December 31, 2016 was $4.77. Past performance does not guarantee future results.~~2022.

~~Item 3.~~

~~Quantitative and Qualitative Disclosures About Market Risk.~~

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

Not applicable.

~~Item 4.~~

~~Controls and Procedures.~~

Item 4. Controls and Procedures.

Disclosure Controls and Procedures.

We maintain disclosure controls and procedures to ensure that information required to be disclosed in the reports we file pursuant to the Exchange Act are recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure based on the definition of “disclosure controls and procedures” in Rule 13a-15(e) of the Exchange Act. In designing and evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can only provide a reasonable assurance of achieving the desired control objectives, and in reaching a reasonable level of assurance, management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

We have a disclosure controls and procedures committee, comprised of the Chief Executive Officer and Chief Financial Officer, which meets as necessary and is responsible for considering the materiality of information and determining our disclosure obligations on a timely basis.

The disclosure controls and procedures committee carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this report. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of the end of the period covered by this report.

Changes in internal control over financial reporting.

There were no changes in our internal control over financial reporting (as such term is defined in Exchange Act Rule 13a-15(f)) that occurred during our most recent quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II – ~~OTHE~~ROTHER INFORMATION

~~Item 1.~~

~~Legal Proceedings.~~

Item 1. Legal Proceedings.

From time to time, the Company or its subsidiaries may be named in legal actions and proceedings. These actions may seek substantial or indeterminate compensatory as well as punitive damages or injunctive relief. We are also subject to governmental or regulatory examinations or investigations. Examinations or investigations can result in adverse judgments, settlements, fines, injunctions, restitutions or other relief. For any such matters, the Company will seek to include in its financial statements the necessary provisions for losses that it believes are probable and estimable. Furthermore, the Company will seek to evaluate whether there exist losses which may be reasonably possible and, if material, make the necessary disclosures. The Company currently does not have any material pending legal proceedings to which it or any of its subsidiaries is a party or of which any of their property is the subject.

Item 1A. Risk Factors.

The risk factors that affect our business and financial results are discussed in Part I, Item 1A, of our annual report on Form 10-K for the fiscal year ended December 31, 2021. There are no material changes to the risk factors previously disclosed, nor have we identified any previously undisclosed risks that could materially adversely affect our business and financial results.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

None.

~~Unregistered Sales of Equity Securities and Use of Proceeds.~~

~~None.~~

Item 3. Defaults Upon Senior Securities.

None.

~~Defaults Upon Senior Securities.~~

~~None.~~

~~Item 4.~~

~~Mine Safety Disclosures.~~

Item 4. Mine Safety Disclosures.

Not applicable.

Item 5. Other Information.

None.

~~Other Information.~~

~~None.~~

~~Item 6.~~

~~Exhibits.~~

Item 6. Exhibits.

Exhibits – See Exhibit Index below.

~~Exhibit~~ ~~Index~~

Exhibit Index


Exhibit Item Number and Description	Incorporated by Reference to	Filed Herewith

~~3.1 Articles Supplementary of Global Self Storage, Inc. (filed as Exhibit 3.1 to the Company’s Current Report on Form 8-K filed on October 20, 2017 and incorporated herein by reference)~~	X

3.2 Articles of Amendment and Restatement of Global Self Storage, Inc. (filed as Exhibit 3.2 to the Company’s Current Report on Form 8-K filed on October 20, 2017 and incorporated herein by reference)	X

~~3.3 Second Amended and Restated Bylaws of Global Self Storage, Inc. (filed as Exhibit 3.3 to the Company’s Current Report on Form 8-K filed on October 20, 2017 and incorporated herein by reference)~~	X

4.1 First Amendment, dated October 20, 2017, to Rights Agreement, dated as of January 29, 2016, between Global Self Storage, Inc. and American Stock Transfer & Trust Company, LLC (filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K filed on October 20, 2017 and incorporated herein by reference)	X

~~10.1 Global Self Storage, Inc. 2017 Equity Incentive Plan (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on October 20, 2017 and incorporated herein by reference)~~	X

31.1 Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.		X

31.2 Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.		X

32.1 Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.		X

32.2 Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.		X

101. The following materials from Global Self Storage, Inc.’s Quarterly Report on Form 10-Q for the quarter ended September 30, ~~2017,~~2022, are formatted in Inline XBRL (eXtensible Business Reporting Language): (1) the Consolidated Balance Sheets, (2) the Consolidated Statements of Operations, (3) the Consolidated ~~Statement~~Statements of Comprehensive Income, (4) Consolidated Statement of Stockholders’ Equity, (5) Consolidated Statements of Cash Flows, and (6) the Notes to Financial Statements.		X

104. The cover page from the Company’s Quarterly report on Form 10-Q for the quarter ended September 30, 2022 has been formatted in Inline XBRL (eXtensible Business Reporting Language) and in included in Exhibit 101.		X

~~SIGNATURES~~

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


	GLOBAL SELF STORAGE, INC.

Date: November ~~13, 2017~~10, 2022	/s/ Mark C. Winmill
	By:	Mark C. Winmill, President
	(Signing on behalf of the registrant as Principal Executive Officer)

Date: November ~~13, 2017~~10, 2022	/s/ Thomas O’Malley
	By:	Thomas O’Malley, Chief Financial Officer
	(Signing on behalf of the registrant as Principal Financial Officer and Principal Accounting Officer)

	September 30,		December 31,
	2017		2016
Assets
Real estate assets, net	$	55,031,125	$	55,775,068
Cash and cash equivalents		2,506,811		2,911,640
Restricted cash		89,713		54,054
Investments in securities		1,452,173		1,473,950
Accounts receivable		100,324		157,607
Prepaid expenses and other assets		320,928		265,045
Intangible assets, net		33,183		317,140
Goodwill		694,121		694,121
Total assets	$	60,228,378	$	61,648,625
Liabilities and equity
Note payable	$	19,406,797	$	19,374,971
Accounts payable and accrued expenses		1,904,483		1,723,458
Total liabilities		21,311,280		21,098,429
Commitments and contingencies
Equity
Common stock, $0.01 par value, 19,900,000 shares authorized; 7,619,469 and 7,619,469 issued and outstanding at September 30, 2017 and December 31, 2016, respectively		76,195		76,195
Series A participating preferred stock, $0.01 par value, 100,000 shares authorized: zero shares issued and outstanding		—		—
Additional paid in capital		33,881,863		33,881,863
Accumulated comprehensive income		696,686		718,463
Retained earnings		4,262,354		5,873,675
Total equity		38,917,098		40,550,196
Total liabilities and equity	$	60,228,378	$	61,648,625


	September 30, 2022			December 31, 2021
Assets
Real estate assets, net	$	57,257,626		$	58,390,066
Cash and cash equivalents		6,341,502			2,899,701
Restricted cash		132,104			163,998
Investments in securities		2,593,297			3,483,182
Accounts receivable		162,701			120,641
Prepaid expenses and other assets		546,420			534,120
Line of credit issuance costs, net		177,803			254,004
Interest rate cap		111,801			9,408
Goodwill		694,121			694,121
Total assets	$	68,017,375		$	66,549,241
Liabilities and equity
Note payable, net	$	17,546,978		$	17,916,513
Accounts payable and accrued expenses		1,835,004			1,514,631
Total liabilities		19,381,982			19,431,144
Commitments and contingencies
Stockholders' equity
Preferred stock, $0.01 par value: 50,000,000 shares authorized; no shares issued or outstanding		—			—
Common stock, $0.01 par value: 450,000,000 shares authorized; 11,100,842 shares and 10,708,613 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively		111,008			107,086
Additional paid in capital		48,960,578			46,851,360
Retained earnings (accumulated deficit)		(436,193	)		159,651
Total stockholders' equity		48,635,393			47,118,097
Total liabilities and stockholders' equity	$	68,017,375		$	66,549,241



										Retained
										earnings			Total
	Common stock						Additional paid in			(accumulated			stockholders'
	Shares			Par value			capital			deficit)			equity
Balances at December 31, 2021		10,708,613		$	107,086		$	46,851,360		$	159,651		$	47,118,097
Restricted stock grants issued		26,025			260			(260	)	—			—
Restricted stock grant forfeiture		(203	)		(2	)		2		—			—
Issuance of common stock, net of expenses		65,843			659			197,711		—				198,370
Stock-based compensation	—			—				52,604		—				52,604
Net income	—			—			—				283,207			283,207
Dividends	—			—			—				(700,339	)		(700,339	)
Balances at March 31, 2022		10,800,278			108,003			47,101,417			(257,481	)		46,951,939
Restricted stock grant forfeiture		(406	)		(4	)		4		—			—
Issuance of common stock, net of expenses		165,808			1,658			984,295		—				985,953
Stock-based compensation	—			—				39,329		—				39,329
Net income	—			—			—				404,200			404,200
Dividends	—			—			—				(708,487	)		(708,487	)
Balances at June 30, 2022		10,965,680			109,657			48,125,045			(561,768	)		47,672,934
Restricted stock grant forfeiture		(2,329	)		(23	)		23		—			—
Issuance of common stock, net of expenses		137,491			1,374			796,331		—				797,705
Stock-based compensation	—			—				39,179		—				39,179
Net income	—			—			—				929,864			929,864
Dividends	—			—			—				(804,289	)		(804,289	)
Balances at September 30, 2022		11,100,842		$	111,008		$	48,960,578		$	(436,193	)	$	48,635,393

Investment Income
Dividends
Unaffiliated issuers	$	5,165

Total investment income		5,165

Expenses
Compensation and benefits		39,109
Auditing		6,570
Occupancy and other office expenses		4,091
Directors		2,070
Bookkeeping and pricing		1,440
Custodian		720
Insurance		720
Transfer agent		630
Stockholder communications		360
Registration		77

Total expenses		55,787

Net investment loss		(50,622	)

Realized and Unrealized Gain (Loss)
Net unrealized depreciation unaffiliated issuers		(22,605	)

Net unrealized loss		(22,605	)

Net decrease in net assets resulting from operations	$	(73,227	)




											Total
	Common stock				Additional paid in			Accumulated			stockholders'
	Shares		Par value		capital			deficit			equity
Balances at December 31, 2020		9,343,118	$	93,431	$	40,455,409		$	(509,949	)	$	40,038,891
Restricted stock grants issued		63,475		635		(635	)	—			—
Restricted stock grant forfeiture	—		—			31,706		—				31,706
Net income	—		—		—				411,247			411,247
Dividends	—		—		—				(607,303	)		(607,303	)
Balances at March 31, 2021		9,406,593		94,066		40,486,480			(706,005	)		39,874,541
Restricted stock grant forfeiture		12,300		123		(123	)	—			—
Issuance of common stock, net of expenses		1,289,720		12,897		6,171,787		—				6,184,684
Stock-based compensation	—		—			54,476		—				54,476
Net income	—		—		—				861,299			861,299
Dividends	—		—		—				(612,228	)		(612,228	)
Balances at June 30, 2021		10,708,613		107,086		46,712,620			(456,934	)		46,362,772
Stock-based compensation	—		—			54,092		—				54,092
Net income	—		—		—				629,062			629,062
Dividends	—		—		—				(696,060	)		(696,060	)
Balances at September 30, 2021		10,708,613	$	107,086	$	46,766,712		$	(523,932	)	$	46,349,866


Large accelerated filer	☐		Accelerated filer	☐
Non-accelerated filer	☒	~~(Do not check if a smaller reporting company)~~		☐
			Smaller reporting company	☒
			Emerging growth company	☐


STATEMENT ON FORWARD LOOKING INFORMATION			3
PART I – FINANCIAL INFORMATION			5
	Item 1.	Financial Statements (Unaudited).	5
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations.	21
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk.	3632
	Item 4.	Controls and Procedures.	3632
PART II – OTHER INFORMATION			3734
	Item 1.	Legal Proceedings.	3734
	Item 2.1A.	Risk Factors.	34
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.	3734
	Item 3.	Defaults Upon Senior Securities.	3734
	Item 4.	Mine Safety Disclosures.	3734
	Item 5.	Other Information.	3734
	Item 6.	Exhibits.	3734
Exhibit Index			3835
SIGNATURES			3936

							Accumulated Other						Total
	Common Stock				Paid in		Comprehensive			Retained			Stockholders'
	Shares		Par Value		Capital		Income			Earnings			Equity
Balances at December 31, 2016		7,619,469	$	76,195	$	33,881,863	$	718,463		$	5,873,675		$	40,550,196
Unrealized loss on available-for-sale securities	—		—		—			(21,777	)	—				(21,777	)
Net loss	—		—		—		—				(125,524	)		(125,524	)
Dividends	—		—		—		—				(1,485,797	)		(1,485,797	)
Balances at September 30, 2017		7,619,469	$	76,195	$	33,881,863	$	696,686		$	4,262,354		$	38,917,098

Cash Flows From Operating Activities
Net decrease in net assets resulting from operations	$	(73,227	)
Adjustments to reconcile decrease in net assets resulting from operations to net cash provided by (used in) operating activities:

Unrealized depreciation of investments		22,605
Net sales of short term investments		96,448
Decrease in dividends receivable		9,232
Decrease in other assets		715
Decrease in accrued expenses		(69,986	)
Increase in due to affiliates		14,213

Net cash provided by operating activities		—

Cash
Beginning of period, December 31, 2015		29,763

End of period, January 18, 2016	$	29,763

Fair value of self storage properties on the effective date of the change in status				$	34,624,573
Total net assets of combined self storage properties
Property plant and equipment - self storage	$	26,388,167
Cash and cash equivalents		464,585
Accounts receivable		87,103
Prepaid expenses and other assets		206,146
Accounts payable and accrued expenses		(488,514	)		26,657,487
Increase to the initial carrying value of the net assets of self storage properties on the effective date of the change in status				$	7,967,086

Self storage properties, at cost:
Beginning balance	$	51,156,701
Improvements and equipment additions		212,973
Ending balance		51,369,674

Land
Beginning balance		5,493,814
Ending balance		5,493,814

Accumulated depreciation:
Beginning balance		(875,447	)
Depreciation expense		(1,057,305	)
Ending balance		(1,932,752	)

Construction in progress:
Beginning balance	—
Current development		100,389
Ending balance		100,389

Total real estate assets at September 30, 2017	$	55,031,125

2017	$	—
2018		228,987
2019		472,600
2020		492,797
2021		513,857
2022 and thereafter		18,291,759
Total principal payments		20,000,000
Less: Loan procurement costs, net		(593,203	)
Total note payable	$	19,406,797

Net income	$	45,399
Adjustments:
General and administrative		111,247
Depreciation and amortization		54,084
Dividend and interest income		(2,958	)
Other property expenses		5,309
Combined adjustment for the period January 1, 2016 to January 18. 2016	$	213,081