Item 2. Properties
ITEM
2. PROPERTIES
Our principal executive office is currently located
at 8360 E. Raintree Drive, #230, Scottsdale, AZ 85260. On March 15, 2022, we entered to an Assumption of Lease and Consent Agreement with
a landlord, whereby the landlord consented to the assignment of an office lease, as amended, from the original tenant to the Company.
The lease term shall begin on March 15, 2022 and expire on November 30, 2024, provided the Company has the option to extend the lease
for an additional five years. The monthly base rent is $2,932 per month through November 30, 2022, $3,005 from December 1, 2022 through
November 30, 2023, and $3,078 from December 1, 2023 through November 30, 2024.
The lease for our prior executive offices expires
on March 31, 2021. The lease provided for an annual base rent of $17,583.
We are in the business of property acquisition,
development, and commercial leasing and intend to primarily structure lease agreements with prospective tenants using a triple-net lease
model. The property portfolio currently includes (i) land and real property constructed in Green Valley, Arizona, (ii) land and real property
in Kingman, Arizona, (iii) land and real property in Tempe Arizona, and (iv) land and real property of approximately 47 acres in Chino
Valley, Arizona. The properties in Tempe, Green Valley, Kingman, and Chino Valley, Arizona are currently leasing space to tenants that
operate licensed medical cannabis facilities. On June 1, 2021, we closed on the sale of our vacant land located in Gilbert, AZ for an
aggregate purchase price of $335,000. In connection with the sale, we received net proceeds of $322,332 and recorded a gain on sale of
rental property of $51,944. As of December 31, 2021, each of our leased properties was generating revenue.
ITEM
3. LEGAL PROCEEDINGS
There
are no pending or threatened legal or administrative actions pending or threatened against us that we believe would have a material effect
on our business.
ITEM
4. MINE SAFETY DISCLOSURES
Not
applicable.
21
PART
II
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