Company: SQFTP
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001437749-25-016828
Chunk: 114

Company: Presidio Property Trust, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 1
Chunk 114
---
 of other investors to participate in those decisions. We determine whether we are the primary beneficiary of a VIE at the time we become involved with a variable interest entity and reconsider that conclusion continually.  We consolidate any VIE of which we are the primary beneficiary.
    
   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, 2023, and for the three months ended  March 31, 2024, respectively, reflects an adjustment to include restricted stock compensation.

       14

   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, 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 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 three months ended  March 31, 2024, the total fees reclassified amounted to $220,620.  There was no change to total revenues in either period.
    
   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 three months ended  March 31, 2024, $247,360 should have been disclosed as a supplemental disclosure of cash flow information as paid building and tenant improvements from a prior year and adjusted accounts payable.