Company: SQFTP
Filing Date: 2025-04-17
Form Type: DEF 14A
Source: 0001641172-25-005264
Chunk: 67

Company: Presidio Property Trust, Inc.
Filing Date: 2025-04-17
Form: DEF 14A
Chunk 67
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 or practices, financial statement disclosures, or auditing scope or procedures, which disagreements, if not resolved to the satisfaction of Baker Tilly US, LLP would have caused Baker Tilly US, LLP to make reference to the subject matter of the disagreements in connection with its audit reports.

During the Relevant Period, there were no reportable events of the type described in Item 304(a)(1)(v) of Regulation S-K except as set forth below.

As disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, the Company’s management identified the following material weaknesses in internal control over financial reporting, which relates to a non-recuring significant transaction for income tax provision under ASC 740, Income Taxes:

| ● | The Company lacked a formal                                                                                                           
 review and approval process in connection with the annual income tax provision, specifically related to real estate investment trust  
 (“REIT”) and non-REIT subsidiaries and the ownership of shares of Conduit Pharmaceuticals Inc. (“Conduit”)                            
 received by the Company in Conduit’s de-SPAC transaction on September 22, 2023; and                                                   |
|:--|:--------------------------------------------------------------------------------------------------------------------------------------|
| ● | The Company did not design                                                                                                            
 adequate internal controls under an appropriate financial reporting framework, including monitoring controls and certain entity level 
 controls with regards to the income tax provision.                                                                                    |

These material weaknesses were discussed by the Company’s management and the Audit Committee with Baker Tilly US, LLP.

The Audit Committee has authorized Baker Tilly US, LLP to respond fully to the inquiries of the Company’s new independent registered public accounting firm, concerning this material weakness.

The Company provided Baker Tilly US, LLP with a copy of its current report on Form 8-K describing Baker Tilly US, LLP’s dismissal (the “Change in Auditor 8-K”) prior to its filing with the SEC and requested that Baker Tilly US, LLP furnish the Company with a letter addressed to the SEC stating whether or not Baker Tilly US, LLP agrees with the above statements. A copy of the letter from Baker Tilly US, LLP dated August 21, 2024 has been filed with the Change in Auditor 8-K as Exhibit 16.1.

On August 19, 2024, the Audit Committee approved the engagement of Moss Adams LLP as the Company’s new independent registered public accounting firm to audit the Company’s consolidated financial statements commencing for the year ending December 31, 2024.

During the two most