Company: SQFTP
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001437749-25-026786
Chunk: 52

Company: Presidio Property Trust, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 52
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 that most significantly impact such entity’s economic performance; and (ii) the obligation to absorb losses or the right to receive benefits from such entity that could potentially be significant to such entity. Performance of that analysis requires the exercise of judgment.
    
   We consider a variety of factors in identifying the entity that holds the power to direct matters that most significantly impact the VIE’s economic performance, including, but not limited to, the ability to direct operating decisions and activities. In addition, we consider the rights 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 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 and six months ended  June 30, 2024, the total fees reclassified amounted to $211,256 and $431,876, respectively.  Amortization of model home transaction fees during the fourth quarter of 2023, first quarter of 2024, the second quarter of 2024, third quarter of 2024 and fourth quarter of 2024 totaled approximately, $194,884, $220,620, $211,256, $165,983 and $159,845, respectively.  There was no change to total revenues in either period.

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   For the six months ended  June 30, 2024, $295,567 for paid building and tenant improvements from prior year and $91,513 for unpaid building and tenant improvements should have been included in supplemental disclosure of cash flow information.  The net adjustment of $204,054 is reflected in accounts payable and accrued liabilities and additions to buildings and tenant improvements.  Additionally, payment of debt issuance costs included in accounts payable and accrued liabilities, totaling $182,798, should have been presented under cash flows from financing activities for the six months ended  June 2024, along with a prepayment penalty of $171,734. These errors impact  the consolidated statement of cash flows and do not affect the consolidated balance sheets, consolidated statement of operations and consolidated statements of changes in equity. 
    
   As such, the Company’s consolidated statement of