Company: SQFTP
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001437749-25-010185
Chunk: 397

Company: Presidio Property Trust, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 10
Chunk 397
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 the balance of the non-recourse loan.  Due to the uncertainties in the Fargo market, we decided to impair the property’s book value, in accordance with ASC 360-10.  As such, for the year ended  December 31, 2024, we recorded an impairment charge of approximately $0.7 million. The impairment on 300 NP, totaling approximately $0.7 million, for the year ended  December 31, 2024, related to changing cap rates in the area and low historical occupancy.  This property is not listed for sale and has no debt.
    
   Intangible Assets.  Intangible assets, including goodwill and lease intangibles, are comprised of finite-lived and indefinite-lived assets. Lease intangibles represent the allocation of a portion of the purchase price of a property acquisition representing the estimated value of in-place leases, unamortized lease origination costs, tenant relationships and land purchase options. Intangible assets that are not deemed to have an indefinite useful life are amortized over their estimated useful lives. Indefinite-lived assets are not amortized. Amortization expense of intangible assets that are not deemed to have an indefinite useful life was approximately  and , respectively, for the years ended  December 31, 2024 and 2023 and is included in depreciation and amortization in the accompanying consolidated statements of operation.
    
   The Company is required to perform a test for impairment of goodwill and other definite and indefinite lived assets at least annually, and more frequently as circumstances warrant. Impairment is recognized only if the carrying amount of the intangible asset is considered to be unrecoverable from its undiscounted cash flows and is measured as the difference between the carrying amount and the estimated fair value of the asset. For the year ended  December 31, 2024, we have recorded an impairment charge to the goodwill of NTR Property Management for approximately $0.2 million.  See Fair Value Measurements below for additional information.
    
   Depreciation and Amortization. The Company records depreciation and amortization expense using the straight-line method over the useful lives of the respective assets. The costs of buildings are depreciated over estimated useful lives of 39 years, the costs of improvements are amortized over the shorter of the estimated life of the asset or term of the tenant lease (which range from 1 to 10 years), the costs associated with acquired tenant intangibles over