Company: SQFTP
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001437749-25-010185
Chunk: 1844

Company: Presidio Property Trust, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 12
Chunk 1844
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ability of amounts due from tenants and maintains an allowance for doubtful accounts for estimated losses resulting from the inability of tenants to make required payments under lease agreements. In addition, the Company maintains an allowance for deferred rent receivable that arises from straight lining of rents. The Company exercises judgment in establishing these allowances and considers payment history and current credit status of its tenants in developing these estimates. As of
      December 31, 2024 and
     2023, the balance of allowance for possible uncollectable tenant receivables included in other assets, net in the accompanying consolidated balance sheets was approximately 
     $0 and 
     $91,718, respectively.

     Deferred Leasing Costs. Costs incurred in connection with successful property leases are capitalized as deferred leasing costs and amortized to leasing commission expense on a straight-line basis over the terms of the related leases which generally range from
     one to
     five years. Deferred leasing costs consist of
     third-party leasing commissions. Management re-evaluates the remaining useful lives of leasing costs as the creditworthiness of the tenants and economic and market conditions change. If management determines the estimated remaining life of the respective lease has changed, the amortization period is adjusted. At
      December 31, 2024 and
     2023, the Company had net deferred leasing costs of approximately 
     $1.7 million and 
     $1.7 million, respectively. Total amortization expense for the years ended
      December 31, 2024 and
     2023 was approximately 
     $0.5 million and 
     $0.5 million, respectively, and is included in the total for depreciation and amortization noted above.

   Deferred Financing Costs. Costs incurred, including legal fees, origination fees, and administrative fees, in connection with debt financing are capitalized as deferred financing costs, are amortized using the straight line method, which approximates the effective interest method, over the contractual term of the respective loans and recorded as an offset to the carrying value of the debt. At  December 31, 2024 and 2023, unamortized deferred financing costs related to mortgage notes payable were approximately $0.7 million and $0.8 million. For the years ended  December 31, 2024 and 2023, total amortization expense related to the mortgage notes payable deferred financing costs was approximately $0.4 million and $0.