What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-11-13 compared with 2025-08-14 · 194 added, 181 removed, 369 unchanged (50% of the section changed)

80 unchanged sentences

Properties maintains a portfolio of properties that it owns, develops and leases.

As of June 30, 2025, the Company leases land and/or

As of September 30, 2025, the Company leases land and/or

building space at the seven properties in its portfolio to licensed and regulated cannabis tenants in areas with established cannabis

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demand in the industry.

Below is summary of rental properties owned by us as of June 30, 2025:

is summary of rental properties owned by us as of September 30, 2025:

Chino Valley,

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Dec 22/Feb 23

Lease Start Date

December 2022

Land Area (Sq.

Rentable Building Sq.

Rentable (Sq.

rented as of June 30, 2025

Base Rent (*,**)

Annual base rent represents

amount of cash payments due from tenants.

Lease End Date

Undeveloped Land Area (Sq.

Developed Land Area (Sq.

Total Rentable Building Sq.

Vacant Rentable (Sq.

rented as of September 30, 2025

Annual Base Rent (*,**)

rent represents amount of cash payments due from tenants.

For Tempe, AZ, table includes

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$ per Rented Sq.

Chino Valley,

Green Valley,

Pleasant Ridge,

of Operations

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information for the periods identified below and should be read in conjunction with the unaudited consolidated financial statements and

the notes to those statements for the three months ended June 30, 2025 and 2024, which are included elsewhere in this quarterly report

on Form 10-Q.

The results discussed below are for the three and six months ended June 30, 2025 and 2024.

of Results of Operations for the Three and Six Months Ended June 30, 2025 and 2024

the three and six months ended June 30, 2025 and 2024, revenues by reportable business segments were as follows:

investment portfolio

estate services

the notes to those statements for the three months ended September 30, 2025 and 2024, which are included elsewhere in this quarterly

report on Form 10-Q.

The results discussed below are for the three and nine months ended September 30, 2025 and 2024.

of Results of Operations for the Three and Nine Months Ended September 30, 2025 and 2024

the three and nine months ended September 30, 2025 and 2024, revenues by reportable business segments were as follows:

Three Months Ended

September 30,

Nine Months Ended

September 30,

Property investment portfolio

Real estate services

Total revenues

For the three months ended June 30, 2025, total

revenues amounted to $937,774, including property investment portfolio revenues of $757,626, which consists of rental revenues, as compared

to total revenues of $692,326, including property investment portfolio revenues of $679,326, for the three months ended June 30, 2024,

representing an overall increase of $245,488, or 35.4%.

This increase was attributable to an increase in rental revenues of $78,300, or

11.5%, primarily attributable to an increase in rental revenue from our recently acquired properties in Chicago, IL and Surprise, AZ,

and a net increase in real estate services revenues of $167,148, or 1,285.8%, attributable to an increase in advisory fees, commissions

and assignment fees earned on real estate listings.

For the six months ended June 30, 2025, total revenues amounted to

$1,912,326, including property investment portfolio revenues of $1,518,518, which consists of rental revenues, as compared to total revenues

of $1,529,378 including property investment portfolio revenues of $1,370,618, for the six months ended June 30, 2024, representing an

overall increase of $382,948, or 25.0%.

This increase was attributable to an increase in rental revenues of $147,900, or 10.8%, primarily

attributable to an increase in rental revenue from our recently acquired properties in Chicago, IL and Surprise, AZ, and a net increase

in real estate services revenues of $235,048 or 148.1%, attributable to an increase in advisory fees, commissions and assignment fees

earned on real estate listings.

the three months ended September 30, 2025, total revenues amounted to $1,013,133, including property investment portfolio revenues of

$765,497, which consists of rental revenues, as compared to total revenues of $1,029,630, including property investment portfolio revenues

of $750,926, for the three months ended September 30, 2024, representing an overall decrease of $16,497, or 1.6%.

This decrease was attributable

to an increase in rental revenues of $14,571, or 1.9%, primarily attributable to an increase in rental revenue from our recently acquired

properties in Chicago, IL and Surprise, AZ, and offset by net decrease in real estate services revenues of $(31,068), or (11.1%), attributable

to a decrease in advisory fees, commissions and assignment fees earned on real estate listings.

the nine months ended September 30, 2025, total revenues amounted to $2,925,459, including property investment portfolio revenues of

$2,284,015, which consists of rental revenues, as compared to total revenues of $2,559,008 including property investment portfolio revenues

of $2,121,544, for the nine months ended September 30, 2024, representing an overall increase of $366,451, or 14.3%.

This increase was

attributable to an increase in rental revenues of $162,471 or 7.7%, primarily attributable to an increase in rental revenue from our

recently acquired properties in Chicago, IL and Surprise, AZ, and a net increase in real estate services revenues of $203,980 or 46.6%,

attributable to an increase in advisory fees, commissions and assignment fees earned on real estate listings.

increase in property investment portfolio revenues was primarily due to the signing of a new lease with new tenants at our recently acquired

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real estate properties are leased under absolute-net or triple-net leases with our tenants.

For the three months ended June 30, 2025, operating expenses amounted

to $665,586, as compared to $589,188 for the three months ended June 30, 2024, representing an increase of $76,398, or 13.0%.

six months ended June 30, 2025, operating expenses amounted to $1,211,367, as compared to $1,297,311 for the six months ended June 30,

2024, representing a decrease of $85,694, or 6.6%.

For the three and six months ended June 30, 2024 and 2023, operating expenses consisted

of the following:

the three months ended September 30, 2025, operating expenses amounted to $645,809, as compared to $584,442 for the three months ended

September 30, 2024, representing an increase of $61,367, or 10.5%.

For the nine months ended September 30, 2025, operating expenses amounted

to $1,857,176, as compared to $1,881,773 for the nine months ended September 30, 2024, representing a decrease of $24,597, or 1.3%.

the three and nine months ended September 30, 2024 and 2023, operating expenses consisted of the following:

Three Months Ended

September 30,

Nine Months Ended

September 30,

Compensation and benefits

Professional fees

Brokerage fees

General and administrative

General and administrative expenses

Depreciation and amortization

Real estate taxes

development costs

For the three months ended June 30, 2025, compensation and benefit

expense increased by $67,291, or 24.6%, as compared to the three months ended June 30, 2024.

The increase was attributable to compensation

expense of $94,083 associated with the increased real estate services, partially offset by a reduction in staff salary expense of $21,852

and compensation fees of $4,940.

For the six months ended June 30, 2025, compensation and benefit expense increased by $87,795, or 16.3%,

as compared to the six months ended June 30, 2024.

The increase was attributable to compensation expense of $86,723 associated with the

increased real estate services, increased stock-based compensation of $39,124 related to accretion

of stock option expense , increased health insurance expense of $12,431, partially offset by a reduction in staff salary expense

of $47,483 and compensation fees of $3,000.

For the three months ended June 30, 2025, professional fees decreased

by $30,852, or 34.7%, as compared to the three months ended June 30, 2024.

Business development costs

For the three

months ended September 30, 2025, compensation and benefit expense increased by $145,645, or 56.2%, as compared to the three months

ended September 30, 2024.

The increase was attributable to an increase in executive and staff compensation and related benefits of

$132,035, primarily attributable to the payment of bonus splits on project fees generated by transactions to team members, an increase

in stock-based compensation of $7,877 related to accretion of stock option expense, and an increase in health insurance of $5,733.

For the nine months ended September 30, 2025, compensation and benefit expense increased by $233,440, or 29.2%, as compared to the

nine months ended September 30, 2024.

The increase was attributable to an increase in executive and staff compensation and related

benefits of $168,273, primarily attributable to the payment of bonus splits on project fees generated by transactions to team members,

an increase in stock-based compensation of $47,003 related to accretion of stock option expense, and an increase in health insurance

expense of $18,165.

For the three months ended

September 30, 2025, professional fees decreased by $18,621 or 28.5%, as compared to the three months ended September 30, 2024.

decrease was primarily attributable to a decrease in consulting fees of $15,750 and a decrease in transfer agent fees of $1,537,

offset by an increase in legal fees of $1,043.

For the nine months ended September 30, 2025, professional fees decreased by $93,982,

or 34.0%, as compared to the nine months ended September 30, 2024.

This decrease was primarily attributable to a decrease in consulting

fees of $32,297 and a decrease in legal fees of $1,039, offset by an increase in accounting fees of $2,484.

For the six months ended June

30, 2025, professional fees decreased by $75,361, or 35.7%, as compared to the six months ended June 30, 2024.

This decrease was primarily

attributable to a decrease in consulting fees of $56,833 and a decrease in legal fees of $20,530, offset by an increase in accounting

fees of $2,002.

fees of $36,750, a decrease in legal fees of $19,157 and a decrease in financial advisory fees of $10,000, offset by an increase

in accounting fees of $2,004.

For the three months ended

June 30, 2025 and 2024, we recorded brokerage fees amounting to $75,244 and $0, respectively, representing an increase of $75,224,

For the six months ended June 30, 2025 and 2024, we recorded brokerage fees amounting to $75,224 and $103,330, respectively,

representing a decrease of $28,106, or 27.2%.

Brokerage fees occur as the result of various percentage-based commission splits we

pay to our licensed brokerage team members who participate in various real estate listing transactions.

September 30, 2025 and 2024, we recorded brokerage fees amounting to $5,709 and $19,033, respectively, representing a decrease of

$13,324 or 70.0%.

Brokerage fees occur as the result of various percentage-based commission splits we pay to our licensed brokerage

team members who participate in various real estate listing transactions For the nine months ended September 30, 2025 and 2024, we

recorded brokerage fees amounting to $80,933 and $122,363, respectively, representing a decrease of $41,430, or 33.9%.

fees occur as the result of various percentage-based commission splits we pay to our licensed brokerage team members who participate

in various real estate listing transactions.

General and administrative

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and internet expenses, advertising and marketing expense, and other general operating expenses.

For the three months ended June 30,

2025, general and administrative expenses decreased by $34,734, or 34.9%, as compared to the three months ended June 30, 2024, primarily

attributable to a decrease in advertising, travel and conference fee expenses.

For the six months ended June 30, 2025, general and

administrative expenses decreased by $57,670, or 32.3%, as compared to the six months ended June 30, 2024, primarily attributable

to a decrease in advertising, travel and conference fee expenses.

For the three months ended September

30, 2025, general and administrative expenses decreased by $21,899, or 25.9%, as compared to the three months ended September 30,

2024, primarily attributable to a decrease in advertising, travel and conference fee expenses.

For the nine months ended September

30, 2025, general and administrative expenses decreased by $79,569, or 30.3%, as compared to the nine months ended September 30,

2024, primarily attributable to a decrease in advertising, travel and conference fee expenses.

For the three

months ended September 30, 2025, depreciation expense decreased by $1,901, or 2.1%, as compared to the three months ended September

For the nine months ended September 30, 2025, depreciation expense decreased by $4,726 or 1.8%, as compared to the nine

months ended September 30, 2024.

For the three months ended

June 30, 2025, depreciation expense decreased by $1,686, or 1.9%, as compared to the three months ended June 30, 2024.

months ended June 30, 2025, depreciation expense decreased by $2,825, or 1.6%, as compared to the six months ended June 30, 2024.

For the three months ended June 30, 2025, real estate taxes increased

by $2,430, or 6.8%, as compared to the three months ended June 30, 2024.

For the six months ended June 30, 2025, real estate taxes increased

by $13,078, or 20.8%, as compared to the six months ended June 30, 2024.

September 30, 2025, real estate taxes decreased by $11,533, or 23.3%, as compared to the three months ended September 30, 2024.

the nine months ended September 30, 2025, real estate taxes increased by $1,545, or 1.4%, as compared to the nine months ended September

For the three months ended

June 30, 2025, business development costs decreased by $1,275, or 100.0%, as compared to the three months ended June 30, 2024.

the six months ended June 30, 2025, business development costs decreased by $22,875, or 100.0%, as compared to the six months ended

June 30, 2024.

Business development costs are costs related to forfeited escrow deposits and the write off of costs related to projects

which we decided not to pursue.

September 30, 2025, business development costs decreased by $17,000, or 100.0%, as compared to the three months ended September 30,

For the nine months ended September 30, 2025, business development costs decreased by $39,875, or 100.0%, as compared to the

nine months ended September 30, 2024.

Business development costs are costs related to forfeited escrow deposits and the write off

of costs related to projects which we decided not to pursue.

(loss) from operations

As a result of the factors described above, for the three months ended

June 30, 2025, income from operations amounted to $272,188, as compared to income from operations of $103,138 for the three months ended

June 30, 2024, an increase of $169,050, or 163.9%.

For the six months ended June 30, 2025, income from operations amounted to $700,959,

as compared to income from operations of $232,047 for the six months ended June 30, 2024, representing an increase of $468,912, or 202.1%.

a result of the factors described above, for the three months ended September 30, 2025, income from operations amounted to $367,324,

as compared to income from operations of $445,188 for the three months ended September 30, 2024, a decrease of $77,864, or 17.5%.

the nine months ended September 30, 2025, income from operations amounted to $1,068,283, as compared to income from operations of $677,235

for the nine months ended September 30, 2024, representing an increase of $391,048, or 57.7%.

(expenses) income, net

Other (expense) income primarily includes

interest expense incurred on debt with third parties and also includes other income (expense).

For the three months ended June 30,

(expense) income primarily includes interest expense incurred on debt with third parties and also includes other income (expense).

the three months ended September 30, 2025 and 2024, total other expenses, net amounted to $210,472 and $386,316, respectively, representing

a decrease of $175,844, or 45.5%.

This decrease was attributable to a decrease in loss in fair value from an interest rate swap of $186,247,

offset by an increase in interest expense of $10,583 primarily related to an increase in notes payable.

For the nine months ended September

30, 2025 and 2024, total other expenses, net amounted to $739,247 and $554,173, respectively, representing an increase of $185,074, or

This increase was attributable to an increase in interest expense of $40,479 primarily related to an increase in notes

payable and an increase in loss in fair value from an interest rate swap of $69,962.

For the six months ended June 30, 2025 and

2024, total other expenses, net amounted to $528,775 and $167,857, respectively, representing an increase of $360,918, or 215.0%.

This increase was attributable to an increase in interest expense of $76,963 primarily related to an increase in notes payable and

an increase in loss in fair value from an interest rate swap of $283,955.

income (loss)

a result of the foregoing, for the three months ended June 30, 2025 and 2024, net income (loss) amounted to $26,326, or $0.00 per common

This increase was attributable to an increase in interest expense of $87,546 primarily related to an increase in notes payable

and an increase in loss in fair value from an interest rate swap of $97,528.

the three and nine months ended September 30, 2025, we incurred a loss from unconsolidated joint ventures of $1,655 and $1,655, respectively.

For the three and nine months ended September 30, 2024, we did not incur a loss from unconsolidated joint ventures.

a result of the foregoing, for the three months ended September 30, 2025 and 2024, net income amounted to $155,197, or $0.01 per common

share (basic) and $0.02 (diluted), and $58,872, or $0.00 per common share (basic and diluted), respectively.

For the six months ended June

30, 2025 and 2024, net income amounted to $172,184, or $0.01 per common share (basic and diluted), and $64,190, or $0.01 per common share

(basic and diluted), respectively.

For the nine months ended

September 30, 2025 and 2024, net income amounted to $327,381, or $0.03 per common share (basic) and $0.02 (diluted), and $123,062, or

$0.01 per common share (basic and diluted), respectively.

and Capital Resources

1 unchanged sentence

We had cash of $1,113,900

and $1,019,980 as of June 30, 2025 and December 31, 2024, respectively.

and $1,019,980 as of September 30, 2025 and December 31, 2024, respectively.

primary uses of cash have been for the acquisition of new property investments, compensation and benefits, fees paid to third parties

6 unchanged sentences

likely to result in changes in our liquidity over the near term to long term:

An increase in working

capital requirements to finance our current business,

in working capital requirements to finance our current business,

Addition of administrative

and sales personnel as the business grows,

The cost of being a public

being a public company,

An increase in investments

55 unchanged sentences

2024, the Company borrowed $1,020,000 of the Maximum Amount and received net proceeds of $983,940, net of origination fees and costs

During the six months ended June 30, 2025, the Company borrowed $300,000 of the Maximum Amount and received net proceeds

As of June 30, 2025 and December 31, 2024, the principal amount of the loan is $1,320,000 and $1,020,000, respectively,

During the nine months ended September 30, 2025, the Company borrowed $300,000 of the Maximum Amount and received net proceeds

As of September 30, 2025 and December 31, 2024, the principal amount of the loan is $1,320,000 and $1,020,000, respectively,

and accrued interest payable amounted to $0 and $0, respectively.

On March 3, 2025, ZP Dysart entered into a First Amendment with its

tenant related to the Sunday Goods Lease at the Surprise Property.

The First Amendment clarifies and defines the process by which the

tenant improvement Allowance for the Tenant Work at the Surprise Property would be completed.

Subject to the terms and conditions of the

Sunday Goods Lease, and so long as there is no default ongoing beyond any notice and/or cure period, partial payments of the Allowance

(the “Allowance Payments”) provided by Landlord shall be made to Tenant as follows:

(#1) $300,000 was paid upon the full

execution of the First Amendment to the Lease;

(#2) $150,000 was paid on March 28, 2025;

March 3, 2025, ZP Dysart entered into a First Amendment with its tenant related to the Sunday Goods Lease at the Surprise Property.

First Amendment clarifies and defines the process by which the tenant improvement Allowance for the Tenant Work at the Surprise Property

would be completed.

Subject to the terms and conditions of the Sunday Goods Lease, and so long as there is no default ongoing beyond

any notice and/or cure period, partial payments of the Allowance (the “Allowance Payments”) provided by Landlord shall be

made to Tenant as follows:

(#1) $300,000 was paid upon the full execution of the First Amendment to the Lease;

(#2) $150,000 was

paid on March 28, 2025;

(#3) $150,000 was paid on May 1, 2025;

and (#4) the remaining $400,000 of the Allowance shall be withheld by Landlord until completion of the Tenant’s Work on the

provided however, Landlord’s obligation to disburse the final $400,000 (Payment #4 of the Allowance Payments) is

expressly conditioned upon Landlord’s receipt of the following “Allowance Deliverables”:

(i) Tenant has furnished to

Landlord a copy of a commercially reasonably detailed final cost breakdown for Tenant’s Work and Landlord has inspected the Premises

to confirm that Tenant’s Work has been completed in a good and workmanlike manner according to the Tenant’s Approved Plans;

(ii) Tenant has furnished to Landlord commercially reasonable final affidavits and final lien releases from Tenant’s general contractor,

and if any, all subcontractors and all material suppliers for all labor and materials performed or supplied as part of Tenant’s

Work (whether or not the Allowance is applicable thereto);

and (iii) a copy of the certificate of occupancy from the governmental authority

having jurisdiction has been delivered to Landlord.

Throughout the project, Tenant shall be required to provide Landlord with ongoing

accounting reflecting a commercially reasonable breakdown of the Tenant’s Work paid for with the Allowance Payments, and also a

current Form W-9, Request for Taxpayer Identification Number and Certification, executed by Tenant.

and (#4) the remaining $400,000 of the Allowance shall be withheld

by Landlord until completion of the Tenant’s Work on the Property;

provided however, Landlord’s obligation to disburse the

final $400,000 (Payment #4 of the Allowance Payments) is expressly conditioned upon Landlord’s receipt of the following “Allowance

Deliverables”:

(i) Tenant has furnished to Landlord a copy of a commercially reasonably detailed final cost breakdown for Tenant’s

Work and Landlord has inspected the Premises to confirm that Tenant’s Work has been completed in a good and workmanlike manner

according to the Tenant’s Approved Plans;

(ii) Tenant has furnished to Landlord commercially reasonable final affidavits and final

lien releases from Tenant’s general contractor, and if any, all subcontractors and all material suppliers for all labor and materials

performed or supplied as part of Tenant’s Work (whether or not the Allowance is applicable thereto);

and (iii) a copy of the certificate

of occupancy from the governmental authority having jurisdiction has been delivered to Landlord.

Throughout the project, Tenant shall

be required to provide Landlord with ongoing accounting reflecting a commercially reasonable breakdown of the Tenant’s Work paid

for with the Allowance Payments, and also a current Form W-9, Request for Taxpayer Identification Number and Certification, executed

the existence of any event of default, PMF may, at its option, exercise any one or more of the remedies described in the PMF Loan Documents

35 unchanged sentences

inability to obtain additional capital may restrict our ability to grow our business operations.

the Six Months Ended June 30, 2025 and 2024

cash flow provided by operating activities was $569,790 for the six months ended June 30, 2025, as compared to net cash flow provided

by operating activities of $246,788 for the six months ended June 30, 2024, representing an increase of $323,002.

Net cash flow provided

by operating activities for the six months ended June 30, 2025 primarily reflected net income of $172,184, adjusted for the add-back

of non-cash items consisting of depreciation of $176,692, amortization of debt discount of $12,836, accretion of stock-based stock

option expense of $68,636, and loss from the changes in fair value from an interest rate swap of $137,309, offset by changes in operating

assets and liabilities primarily consisting of a decrease in accounts receivable of $152,676, an increase in deferred rent of $239,805

attributable to rent abatement on our new tenant leases at our Chicago, Illinois and Surprise, AZ properties, a decrease in lease

incentive receivable of $13,761, a decrease in prepaid expenses of $150,957, a decrease in accounts payable of $63,080, a decrease

in accrued expenses of $21,264, a decrease in contract liabilities of $6,840, and an increase in security deposits payable of $15,399.

Net cash flow provided

by operating activities for the six months ended June 30, 2024 primarily reflected net income of $64,190, adjusted for the add-back

of non-cash items consisting of depreciation of $179,517, amortization of debt discount of $9,230, accretion of stock-based stock

option expense of $29,511, a loss on forfeited escrow deposit of $22,875, and income from the changes in fair value from an interest

rate swap of $146,646, offset by changes in operating assets and liabilities primarily consisting of a decrease in accounts receivable

of $57,783, an increase in deferred rent of $145,518 attributable to rent abatement on our new tenant lease at our Chicago, Illinois

Property, a decrease in accounts payable of $31,733, an increase in accrued expenses of $157,157, an increase in contract liabilities

of $19,201, and an increase in security deposits payable of $17,730.

the six months ended June 30 2025, net cash flow used in investing activities amounted to $845,652 as compared to net cash used in investing

activities of $1,773,619, representing a decrease of $927,967.

During the six months ended June 30, 2025, net cash used in investing

activities was attributable to the purchase of rental properties and improvements of $600,000, an increase in investments in cost method

investee of $84,110, an increase in escrow deposits of $18,181 and an increase in capitalized project costs of $143,361.

During the six

months ended June 30, 2024, net cash used in investing activities was attributable to the purchase of rental property of $1,587,476 primarily

in connection with the acquisition of property in Chicago, Illinois, a purchase of property and equipment of $6,480, an increase in capitalized

project costs of $58,720, and an increase in escrow deposits of $120,943 in connection with escrow deposits made on other potential acquisitions

of rental properties.

the six months ended June 30, 2025 and 2024, net cash provided by (used in) financing activities amounted to $241,729 and $(44,411),

respectively.

During the six months ended June 30, 2025, net cash provided by financing activities consisted of net proceeds from a note

payable of $300,000, offset by cash used for the repayment of notes payable of $31,413 and cash used for the purchase of treasury shares

During the six months ended June 30, 2024, net cash used in financing activities amounted to $44,411, which consisted of

the repayment of notes payable.

the Nine Months Ended September 30, 2025 and 2024

cash flow provided by operating activities was $661,392 for the nine months ended September 30, 2025, as compared to net cash flow provided

by operating activities of $455,363 for the nine months ended September 30, 2024, representing an increase of $206,029.

Net cash flow

provided by operating activities for the nine months ended September 30, 2025 primarily reflected net income of $327,381, adjusted

for the add-back of non-cash items consisting of depreciation of $264,492, amortization of debt discount of $19,254, accretion of

stock-based stock option expense of $86,136, and loss from the changes in fair value from an interest rate swap of $150,031, offset

by changes in operating assets and liabilities primarily consisting of a decrease in accounts receivable of $70.497, an increase

in deferred rent of $293,598 attributable to rent abatement on our new tenant leases at our Chicago, Illinois and Surprise, AZ properties,

a decrease in lease incentive receivable of $20,642, a decrease in prepaid expenses of $122,348, a decrease in accounts payable of

$44,049, a decrease in accrued expenses of $91,372, a decrease in contract liabilities of $12,919, and an increase in security deposits

payable of $40,399.

Net cash flow

provided by operating activities for the nine months ended September 30, 2024 primarily reflected net income of $123,062, adjusted

for the add-back of non-cash items consisting of depreciation of $269,218, amortization of debt discount of $15,648, accretion of

stock-based stock option expense of $39,133, a loss on forfeited escrow deposit of $22,875, an increase in bad debt expense of $10,000,

and loss from the changes in fair value from an interest rate swap of $52,503, offset by changes in operating assets and liabilities

primarily consisting of an increase in deferred rent of $252,884 attributable to rent abatement on our new tenant leases at our Chicago,

Illinois and Surprise, AZ properties, a decrease in accounts payable of $73,098, an increase in accrued expenses of $174,818, and

an increase in security deposits payable of $62,645.

the nine months ended September 30 2025, net cash flow used in investing activities amounted to $785,152 as compared to net cash used

in investing activities of $3,318,916, representing a decrease of $2,533,764.

During the nine months ended September 30, 2025, net cash

used in investing activities was attributable to the purchase of rental properties and improvements of $600,000, an increase in investments

in cost method investee of $84,110, a decrease in escrow deposits of $46,319 and an increase in capitalized project costs of $147,361.

D uring the nine months ended September 30, 2024, net cash used in investing activities was attributable

to the purchase of rental properties of $3,290,956 primarily in connection with the acquisition of properties in Chicago, IL and Surprise,

AZ, a purchase of property and equipment of $6,480, an increase in capitalized permit costs of $18,484, and an increase in escrow deposits

the nine months ended September 30 2025, net cash flow provided by financing activities amounted to $217,680 as compared to net cash

provided by financing activities of $915,848, representing a decrease of $698,168.

During the nine months ended September 30, 2025, net

cash provided by financing activities consisted of net proceeds from a note payable of $300,000, offset by cash used for the repayment

of notes payable of $55,462 and cash used for the purchase of treasury shares of $26,858.

During the nine months ended September 30,

2024, net cash provided by financing activities consisted of net proceeds from notes payable of $983,940, offset by cash used for the

repayment of notes payable of $66,107 and cash used for the purchase of treasury shares of $1,985.

Obligations and Off-Balance Sheet Arrangements

7 unchanged sentences

consolidated financial position, results of operations, and cash flows.

following tables summarize our contractual obligations as of June 30, 2025 (dollars in thousands), and the effect these obligations are

expected to have on our liquidity and cash flows in future periods.

Due by Period

following tables summarize our contractual obligations as of September 30, 2025 (dollars in thousands), and the effect these obligations

are expected to have on our liquidity and cash flows in future periods.

Payments Due by Period

Contractual obligations:

Convertible notes

Interest on convertible notes

Notes payable

Sheet Arrangements

10 unchanged sentences

to fund our interest rate swap payments utilizing cash flows from operations.

As of June 30, 2025, the notional amount of our interest

As of September 30, 2025, the notional amount of our interest

rate swaps was $4,384,359.

44 unchanged sentences

regarding the interest rate swap is as follows:

September 30,

Fair Value of

September 30,

Fair Value of

December 7, 2022 interest rate swap

45 unchanged sentences

FVLCS and VIU as defined as follows:

Fair Value Less Costs

to Sell (FVLCS):

Fair value is typically

determined by market prices or appraisals or tax value.

Subtract any costs that

would be incurred to sell the asset (like commissions).

Value in Use (VIU):

This is the present value

of the future cash flows the asset is expected to generate.

Cash flows should be based

on leases in place.

Less Costs to Sell (FVLCS):

is typically determined by market prices or appraisals or tax value.

costs that would be incurred to sell the asset (like commissions).

present value of the future cash flows the asset is expected to generate.

should be based on leases in place.

have capitalized land, which is not subject to depreciation.

15 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis