v3.25.2
Summary of Significant Accounting Policies (Tables)
6 Months Ended
Jun. 30, 2025
Accounting Policies [Abstract]  
Summary of Estimated Useful Lives of Real Property Assets

Depreciation of our real property assets is charged to expense on a straight-line basis over the estimated useful lives as follows:

 

Description

 

Standard Depreciable
Life

Land

 

Not Depreciated

Buildings

 

40 years

Site Improvements

 

7 to 10 years

 

Summary of Fixed Rate Debt Payable

The table below summarizes the carrying amounts and fair values of fixed rate debt instruments that are not carried at fair value as of June 30, 2025 and December 31, 2024. The estimated fair value of financial instruments is subjective in nature and is dependent on a number of important assumptions, including discount rates and relevant comparable market information associated with each financial instrument. The fair value of our fixed and variable rate debt was estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities (categorized within Level 2 of the fair value hierarchy). The use of different market assumptions and estimation methodologies may have a material effect on the reported estimated fair value amounts. As of June 30, 2025 and December 31, 2024, we did not have any variable rate debt.

 

 

 

June 30, 2025

 

 

December 31, 2024

 

 

 

Fair
Value

 

 

Carrying
Value

 

 

Fair
Value

 

 

Carrying
Value

 

Fixed Rate Secured Debt

 

$

101,700,000

 

 

$

103,676,181

 

 

$

100,500,000

 

 

$

104,596,224

 

Schedule of Interest Rate Derivative

The table below presents the Company's assets measured at fair value on a recurring basis as of June 30, 2024, aggregated by the level in the fair value hierarchy within which the measurement falls:

 

 

 

Fair Value Measurements at Reporting Date Using

 

Description

 

Quoted Prices in Active Markets for Identical Assets (Level 1)

 

 

Significant Other Observable Inputs (Level 2)

 

 

Significant Unobservable Inputs (Level 3)

 

Other assets related to real estate held for sale, net

 

$

-

 

 

$

218,716

 

 

$

-

 

 

Schedule of Temporary Differences to Deferred Tax Effects

The major sources of temporary differences that give rise to the deferred tax effects are shown below:

 

 

 

June 30,
2025

 

 

December 31,
2024

 

Deferred tax liabilities:

 

 

 

 

 

 

Depreciation timing differences

 

$

(90,332

)

 

$

(74,197

)

Other

 

 

(47,036

)

 

 

 

Total deferred tax liability

 

 

(137,368

)

 

 

(74,197

)

 

 

 

 

 

 

Deferred tax assets:

 

 

 

 

 

 

Net operating loss carryovers

 

 

7,363,318

 

 

 

6,826,688

 

Other

 

 

172,801

 

 

 

278,136

 

Total deferred tax assets

 

 

7,536,119

 

 

 

7,104,824

 

 

 

 

 

 

 

Valuation allowance (1)

 

 

(7,398,751

)

 

 

(7,030,627

)

 

 

 

 

 

 

Net deferred tax assets

 

$

 

 

$

 

 

(1)
Full valuation allowance was applied as the recoverability of such net deferred tax assets was less than more likely than not.