GLOBAL SELF STORAGE, INC. (NASDAQ:SELF) Files An 8-K Financial Statements and Exhibits

GLOBAL SELF STORAGE, INC. (NASDAQ:SELF) Files An 8-K Financial Statements and Exhibits
Item 9.01 with respect to the Tuxis Properties.

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Item 9.01 Financial Statements and Exhibits.

(a)Financial Statements of Businesses Acquired.

Page

Report of Independent Registered Public Accounting Firm

F-1

Historical Summaries of Revenue and Direct Operating Expenses for the nine months ended September 30, 2016 (unaudited) and for the years ended December 31, 2015 and 2014

F-2

Notes to the Historical Summaries of Revenue and Direct Operating Expenses

F-3

(b) Pro Forma Financial Information.

Page

Introduction

F-4

Unaudited Pro Forma Condensed Consolidated Balance Sheet as of September 30, 2016

F-5

Unaudited Pro Forma Condensed Consolidated Statement of Operations for the Period January 19, 2016 through September 30, 2016

F-6

Notes to Unaudited Pro Forma Condensed Consolidated Financial Statements

F-7

(d) Exhibits.

None.

* * *

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 hereunto duly authorized.

GLOBAL SELF STORAGE, INC.

By:

/s/ Mark C. Winmill

Name:

Mark C. Winmill

Title:

President

Date: October 19, 2017

Report of Independent Registered Public Accounting Firm

To Board of Directors and Shareholders

Global Self Storage, Inc.

New York, New York

We have audited the accompanying Historical Summaries of Revenue and Direct Operating Expenses (the "Historical Summaries") of the three self-storage properties (the "Tuxis Properties") as described in Note 1 for the years ended December 31, 2015 and 2014, and the related notes to the financial statements.

Management's Responsibility for Financial Statements

Management is responsible for the preparation and fair presentation of the Historical Summaries in conformity with U.S. generally accepted accounting principles; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the Historical Summaries that are free from material misstatement, whether due to fraud or error.

Auditors' Responsibility

Our responsibility is to express an opinion on the Historical Summaries based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the Historical Summaries are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Historical Summaries. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the Historical Summaries, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the Historical Summaries in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the Historical Summaries.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the Historical Summaries referred to above present fairly, in all material respects, the revenue and direct operating expenses described in Note 1 of the Tuxis Properties for the years ended December 31, 2015 and 2014, in accordance with U.S. generally accepted accounting principles.

Basis of Accounting

As described in Note 1 to the Historical Summaries, the Historical Summaries of Revenue and Direct Operating Expenses have been prepared for the purpose of complying with the rules and regulations of the Securities and Exchange Commission, and is not intended to be a complete presentation of the Tuxis Properties' revenue and expenses. Our opinion is not modified with respect to this matter

/s/ Tait, Weller & Baker LLP

October 19, 2017

Historical Summaries of Revenue and Direct Operating Expenses of the Tuxis Properties (as described in Note 1)

For the Nine Months Ended September 30, 2016 (unaudited) and for the Years Ended December 31, 2015 and 2014

Nine Months Ended

September 30,

Year Ended December 31,

(Unaudited)

Revenues

Rental income

$ 431,764

$ 548,512

$ 480,507

Other property related income

4,756

6,645

1,670

Total operating revenues

436,520

555,157

482,177

Direct Operating Expenses

Property operations

139,872

186,785

190,241

Total direct operating expenses

139,872

186,785

190,241

Revenues in excess of direct operation expenses

$ 296,648

$ 368,372

$ 291,936

See notes to Historical Summaries of Revenue and Direct Operating Expenses.

Notes to Historical Summaries of Revenue and Direct Operating Expenses of the Tuxis Properties (as described in Note 1)

On December 30, 2016, Global Self Storage, Inc. (the "Company") completed the acquisition of all of the membership interests of each of Tuxis Self Storage I LLC ("TSS I"), currently known as SSG Clinton LLC, Tuxis Self Storage II LLC ("TSS II"), currently known as SSG Millbrook LLC, and Tuxis Real Estate II LLC ("TRE II"), (collectively, the "Tuxis Properties"), from a related seller, Tuxis Corporation ("Tuxis"). TSS I was the owner and operator of a 185 unit, 31,059 square foot self storage facility located in Clinton, Connecticut. TSS II was the owner and operator of a 142 unit, 13,391 square foot self storage facility located in Millbrook, New York. TRE II owned a 1,875 square foot commercial property located in Millbrook, New York which adjoins the property held by TSS II.

The aggregate purchase price of $7,800,000, comprised of payments at closing of $5,925,000 in cash and $975,000 or 202,703 unregistered and restricted shares of the Company's common stock, and contingent upon the satisfaction of certain conditions described in the purchase agreement dated as of November 23, 2016, between the Company and Tuxis, in connection with construction of an additional self storage building at TSS II (the "Expansion Project"), an additional $900,000 cash payment is due to Tuxis upon commencement of construction. On May 2, 2017, the Company received approval from the local municipality for the Expansion Project and, upon commencement of construction, the additional cash payment is expected to be made by the Company to Tuxis. The commercial property at TRE II will be demolished as a part of the Expansion Project and was vacant and earned no revenues during the periods presented and, therefore, has been excluded from the Historical Summaries of Revenue and Direct Operating Expenses (the "Historical Summaries").

The Historical Summaries have been prepared for the purpose of complying with certain rules and regulations of the Securities and Exchange Commission and are not intended to be a complete presentation of the Tuxis Properties revenue and expenses. The Historical Summaries have been prepared on the accrual basis of accounting and as such, require management to make estimates and assumptions that affect the reported amounts of the revenues and expenses during the period presented. Actual results may differ from those estimates.

The unaudited interim Historical Summaries for the period January 1, 2016 through September 30, 2016, was prepared on the same basis as the Historical Summaries for the years ended December 31, 2015 and 2014, and reflects all adjustments, consisting of only normal recurring adjustments, which are, in the opinion of management necessary for a fair presentation of the results of the unaudited interim period. The results of the unaudited interim period are not necessarily indicative of the expected results for the entire fiscal year.

2.

Summary of Significant Accounting Policies

Revenue and Expense Recognition: Rental income earned to month-to-month leases for storage space, as well as associated late charges and administrative fees, are recognized as earned. Promotional discounts reduce rental income over the promotional period.

Property tax expense is 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. Cost of operations and general and administrative expense are expensed as incurred.

Other Property Related Income: Consists primarily of sales of storage-related merchandise, tenant insurance, and other income. Such income is recognized when earned.

Direct Operating Expenses: Direct operating expenses exclude certain costs that may not be comparable to the future operations of the Tuxis Properties. Excluded items primarily consist of depreciation and amortization and other expenses not related to the future operations of the Tuxis Properties.

Capital Improvements and Repairs and Maintenance: Expenditures for significant renovations or improvements that extend the useful life of assets are capitalized. Repair and maintenance costs are expensed as incurred.

Income Taxes: The Company qualifies as a real estate investment trust under the Internal Revenue Code of 1986, as amended (the "IRC"), and will generally not be subject to corporate income taxes to the extent it distributes at least 90% of its taxable income to its stockholders and complies with certain other requirements. Accordingly, no provision has been made for federal income taxes in the accompanying Historical Summaries.

Use of Estimates: The preparation of the Historical Summaries in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the Historical Summaries and accompanying notes. Actual results could differ from those estimates.

3.

Related Party Transactions

Certain officers and directors of the Company also serve as officers and directors of Winmill & Co. Incorporated ("Winco"), Bexil Corporation, Tuxis, and their affiliates (collectively with the Company, the "Affiliates"). Currently, certain of the Affiliates own approximately 5% of the Company's outstanding common stock.
About GLOBAL SELF STORAGE, INC. (NASDAQ:SELF)

Global Self Storage, Inc., formerly Self Storage Group, Inc., is a self-administered and self-managed real estate investment trust. The Company is focused on the ownership, operation, acquisition, development and redevelopment of self-storage facilities. Its self-storage facilities are designed to offer storage space for residential and commercial customers. It owns and operates approximately eight self-storage properties located in New York, Pennsylvania, Illinois, Indiana, South Carolina and Ohio. Its facilities include approximately 485,580 net rentable square feet and over 3,810 storage units. Its facilities feature both covered and outside auto/recreational vehicle (RV)/boat storage. Its facilities feature a rental and payment center. It owns and operates self-storage properties through its subsidiaries, including SSG Bolingbrook LLC, SSG Dolton LLC, SSG Merrillville LLC, SSG Rochester LLC, SSG Sadsbury LLC, SSG Summerville I LLC, SSG Summerville II LLC and SSG Operations LLC.

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