Company: LANDO
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0001495240-25-000005
Chunk: 146

Company: GLADSTONE LAND Corp
Filing Date: 2025-02-19
Form: 10-K
Item: Item 8
Chunk 146
---
 of the existing lease in place.In determining whether the tenant or the Company is the owner of such improvements, several factors will be considered, including, but not limited to: (i) whether the improvement’s useful life is greater than the remaining lease term plus any reasonably certain renewal options; (ii) whether the lease allows the tenant to remove the improvements; (iii) whether the improvement is unique to the tenant or useful to subsequent tenants; (iv) whether the improvement adds value to the property or increases the lifespan of the property; and (v) whether the tenant was provided a form of reimbursement or incentive concerning the improvement.  The determination of who owns the improvements can be subject to significant judgment.Cash and Cash Equivalents

73

We consider cash equivalents to be all short-term, highly-liquid investments that are both readily convertible to cash and have a maturity of three months or less at the time of purchase, except that any such investments purchased with funds held in escrow or similar accounts are classified as restricted cash.  Items classified as cash equivalents include money-market deposit accounts.  Our cash and cash equivalents as of December 31, 2024 and 2023 were held in the custody of one financial institution (which management believes to be financially sound and with minimal credit risk), and our balance at times may exceed federally-insurable limits.  We did not have any restricted cash or cash equivalents as of either December 31, 2024 or 2023.Debt Issuance CostsDebt issuance costs consist of costs incurred to obtain debt financing, including legal fees, origination fees, and administrative fees.  Costs associated with our long-term borrowings and term preferred stock securities required to be recorded net of the respective debt for GAAP purposes are deferred and amortized over the terms of the respective financings using the straight-line method, which approximates the effective interest method.  In the case of our lines of credit, the straight-line method is used due to the revolving nature of the financing instrument.  Upon early extinguishment of any borrowings, the unamortized portion of the related deferred financing costs will be immediately charged to expense.  In addition, in accordance with ASC 470, “Debt” (“ASC 470”), when a financing arrangement is amended so that the only material change is an increase in the borrowing capacity, the unamortized deferred financing costs from the prior arrangement are amortized over the term of the new arrangement.  During the years ended December 31