Company: SQFTP
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001437749-25-010185
Chunk: 1195

Company: Presidio Property Trust, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 4
Chunk 1195
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 excise tax liability recorded in connection with the  January 2023 redemptions was reversed in full by the issuance of Conduit shares on  September 22, 2023.

        F-
       17

   Immaterial Error Corrections. During the second quarter of 2024, management determined that its prior treatment of accruing restricted compensation expense as a liability and included in accounts payable and accrued liabilities on the consolidated balance sheets should be treated differently. Management determined that the restricted stock compensation should be treated as equity and included in additional paid in capital in the Company’s accompanying consolidated balance sheet for the prior years in accordance with ASC 718. Compensation - Stock Compensation. Accordingly, the Company’s accompanying consolidated balance sheets and consolidated statements of changes in equity as of  December 31, 2022 and  December 31, 2023, respectively, and for the three months ended  March 31, 2023,  June 30, 2023, and  March 31, 2024, respectively, reflects an adjustment to include restricted stock compensation.
    
   On the balance sheet as of  December 31, 2023, accounts payable and accrued liabilities reflects a reduction of $21,189 and additional paid-in capital reflects an increase of $21,189.  On the consolidated statements of changes in equity, the three months ended  March 31, 2023,  June 30, 2023 and  September 30, 2023 reflect the addition of restricted stock compensation of $232,106, $228,657, and $270,564, respectively, and the three months ended  March 31, 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