Company: SQFTP
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001437749-25-010185
Chunk: 160

Company: Presidio Property Trust, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 13
Chunk 160
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2024 includes restricted stock compensation of $317,077. The corrections did not affect Consolidated Statements of Operations or Consolidated Statements of Cash Flows in any prior periods.
    
   During the third quarter of 2024, management determined that the consolidated statements of cash flows for the nine months ended  September 30, 2023 and the year ended  December 31, 2023, overstated the amount of cash outflows for building and tenant improvements as a portion of those additions were in accounts payable at the end of each period. For the nine months ended  September 30, 2023 and the year ended  December 31, 2023, $850,918 and $295,567, respectively, should have been disclosed as a supplemental disclosure of cash flow information as unpaid building and tenant improvements. Additionally, management has determined that debt financing costs for the year ended  December 31, 2023 totaling $246,557 should be reclassified from accounts payable and accrued liabilities to payment of debt financing costs under cash flows from financing activities on the consolidated statement of cash flows. Thereby, increasing net cash provided by operating activities and reducing net cash provided by financing activities by $246,557.  The net effect of adjusting unpaid building and tenant improvements and debt financings costs amounts to a $49,010 decrease to operating cash flows for the year ended  December 31, 2023. These errors impact  the consolidated statement of cash flows and do not affect the consolidated balance sheets, consolidated statement of operations and consolidated statements of changes in equity. 
    
   As such, the Company’s consolidated statement of cash flows for the nine months ended  September 30, 2023, reflects an adjustment to reduce cash outflows for unpaid building and tenant improvements. For the nine months ended  September 30, 2023, net cash provided by operating activities, as previously reported, of $488,137 was reduced by $850,918 and net cash provided by investing activities, as previously reported, of $128,168,785 was increased by $850,918.  Additionally, the $295,567 of unpaid building and tenant improvements that were recorded in accounts payable as of  December 31, 2023, and paid in  January 2024, are included in the statement of cash flows for the year ended  December 31, 2024.
    
   The effect of correcting the errors in operating and investing cash flows for unpaid building and