Company: SQFTP
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001437749-25-010185
Chunk: 491

Company: Presidio Property Trust, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 11
Chunk 491
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 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 tenant improvements for the three months ended  March 31, 2024 was $48,207 and for the six months ended  June 30, 2024 was $204,054, which will be reflected in the Company’s interim financial statements the next time these periods are presented.
    
   During the fourth quarter of 2024, management determined that its prior treatment of including amortization of model home transactions fees in fees and other income should be reclassified to rental income on the consolidated statement of operations.  For the years ended  December 31, 2024 and 2023 the total fees reclassified amounted to $757,704 and $649,166, respectively.  There was no change to total revenues in either period.
    
   Reclassifications. Certain prior year balance sheet, statement of operations and statement of cash flows accounts have been reclassified to conform with the current year presentation. The reclassifications did not affect net income in the prior year's consolidated statement of operations.
    
   Warrant Instruments SPAC. Murphy Canyon accounted for warrants in accordance with the guidance contained in ASC 480 and FASB ASC 815, “Derivatives and Hedging”. Under ASC 815-40 and ASC 840 warrants that meet the criteria for equity treatment are recorded in stockholder’s equity. The warrants are subject to re-evaluation of the proper classification and accounting treatment at each reporting period. If the warrants no longer meet the criteria for equity treatment, they will be recorded as a liability and