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 expired on November 30, 2024, provided the Company has the option to extend the lease
for an additional five years. On June 3, 2024 the Company extended the lease for an additional 24 months through November 30, 2026. Effective
December 1, 2024, the monthly base rent shall be $3,665 per month through November 30, 2025 and $3,775 from December 1, 2025 through
November 30, 2026. If extended, the monthly base rent shall be: $3,887 from December 1, 2026 through November 30, 2027, and $4,004 from
December 1, 2027 through November 30, 2028. The Company has the option to extend the lease for a two-year period through November 2028.
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 or
absolute-net lease model. The property investment 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, (iv) land and real property of
approximately 47 acres in Chino Valley, Arizona, (v) land and real property in Pleasant Ridge, Michigan and (vi) land in Chicago, Illinois,
and (vii) land and real property in Surprise Arizona. The properties in Tempe, Green Valley, Kingman, Chino Valley, and Surprise, Arizona,
Pleasant Ridge, Michigan and Chicago, Illinois are currently leasing space to tenants that operate licensed cannabis facilities. In 2025,
the Company was notified that a vehicle crashed into the building located in Chicago, IL, causing significant structural damage. The City
of Chicago declared the building unsafe and ordered its demolition. As such, the Ashland Avenue Property located in Chicago remains a
vacant lot of land. Based upon the most recent information received by the Company from Justice Grown, the Company believes that the development
of the new retail dispensary building will still be completed, and the tenant will open for business in late 2027; however, challenges
related to the ongoing permitting and development process required through the City of Chicago may continue to cause delays. The Company’s
tenant is expected to continue to pay full rent pursuant to the Justice Grown Lease. If Justice Grown does not construct the new building,
the Company may need to pursue recovery through legal claims. In connection with the damage and demolition of the building located in
Chicago, IL and based on conditions existing at our Michigan property, during the year ended December 31, 2025, the Company recorded an
impairment loss of $3,118,716.
As of December 31, 2025, each of our leased properties
was generating revenues.
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.
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PART II