Company: SQFTP
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001437749-25-010185
Chunk: 411

Company: Presidio Property Trust, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 10
Chunk 411
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 investing cash flows for unpaid building and tenant improvements for the three months ended  March 31, 2024 was $48,207 and for the six months ended  June 30, 2024 was $204,054, which will be reflected in the Company’s interim financial statements the next time these periods are presented.
    
   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 years ended  December 31, 2024 and 2023 the total fees reclassified amounted to $757,704 and $649,166, respectively.  There was no change to total revenues in either period.
    
   Reclassifications. Certain prior year balance sheet, statement of operations and statement of cash flows accounts have been reclassified to conform with the current year presentation. The reclassifications did not affect net income in the prior year's consolidated statement of operations.
    
   Warrant Instruments SPAC. Murphy Canyon accounted for warrants in accordance with the guidance contained in ASC 480 and FASB ASC 815, “Derivatives and Hedging”. Under ASC 815-40 and ASC 840 warrants that meet the criteria for equity treatment are recorded in stockholder’s equity. The warrants are subject to re-evaluation of the proper classification and accounting treatment at each reporting period. If the warrants no longer meet the criteria for equity treatment, they will be recorded as a liability and remeasured each period with changes recorded in the statements of operations. The warrants meet the criteria for classification as equity because they were not exercisable until after the SPAC business combination, which occurred on  September 22, 2023, at which point the common shares are no longer redeemable and because they are indexed to Murphy Canyon's common stock and meet the other criteria for equity classification.   See Note 9 Commitments and Contingencies for additional details regarding Murphy Canyon / Conduit.

     Subsequent Events. We evaluate subsequent events up until the date the consolidated financial statements are issued.  See note
     16 Subsequent Events.

          F-
         18

     Recently Issued and Adopted Accounting Pronouncements.  In  December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU")