v3.26.1
Segment Reporting
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
SEGMENT REPORTING

NOTE 11 – SEGMENT REPORTING

 

The Company operates in two operating and reportable segments which consist of (1) the operations, leasing and management of its leased commercial properties, herein known as the “Property Investment Portfolio” segment, and (2) advisory and brokerage services related to commercial properties, herein known as the “Real Estate Services” segment. The Company has determined that these reportable segments were strategic business units that offer different products. Currently, these reportable segments are being managed separately based on the fundamental differences in their operations.

 

The Company’s Property Investment Portfolio segment generates revenues from its operating leases with its tenants. Rental income is accounted for pursuant to ASC Topic 842 “Leases” and includes base rents that each tenant pays in accordance with the terms of its respective lease and is reported on a straight-line basis over the non-cancellable term of the lease, which includes the effects of rent abatements under the leases.

 

The Company’s Real Estate Services segment generates revenues which includes brokerage revenues consisting of real estate sales commissions and assignment fees, and revenues from advisory services for services performed pursuant to its consulting agreements with clients.

 

Corporate and unallocated amounts that do not relate to a reportable segment have been allocated to “Corporate & Unallocated.”

 

The Company’s CODM is its Chief Executive Officer. The decisions concerning the allocation of the Company’s resources are made by the CODM with oversight by the Board. The CODM evaluates the performance of each segment and makes decisions concerning the allocation of resources based upon segment operating profit (loss), generally defined as income or loss before interest expense and income taxes. The CODM assesses segment performance by using each segment’s operating income (loss) and considers budget-to-actual variances on a periodic basis (at least quarterly) when making decisions about operational planning, including whether to invest resources into the segments or into other parts of the Company. Segment assets are reviewed by the Company’s CODM and are disclosed below. The accounting policies of the Property Investment Portfolio segment and the Real Estate Services segment are the same as those described in Note 2 of the Notes to Consolidated Financial Statements.

Information with respect to these reportable business segments for the years ended December 31, 2025 and 2024 was as follows:

 

Year Ended 2025

 

    Property Investment Portfolio     Real Estate Services     Corporate and Unallocated     Consolidated  
Net revenues   $ 3,080,654     $ 1,059,804     $
-
     $ 4,140,458  
                                 
Operating expenses (excluding depreciation and amortization)     478,167       1,291,667       776,547       2,546,381  
Impairment loss from buildings     3,118,716      
-
      
-
       3,118,716  
Depreciation and amortization     358,114      
-
       2,789       360,903  
Loss from operations     (874,343 )     (231,863 )     (779,336 )     (1,885,542 )
Interest expense     (677,156 )    
-
       (119,956 )     (797,112 )
Other income     3,500      
-
      
-
       3,500  
Impairment of equity securities    
-
      
-
       (50,000 )     (50,000 )
Equity method loss from unconsolidated joint ventures    
-
      
-
       (3,352 )     (3,352 )
Loss from derivative – interest rate swap     (121,909 )    
-
      
-
       (121,909 )
Loss before provision for income taxes     (1,669,908 )     (231,863 )     (952,644 )     (2,854,415 )
Provision for income taxes    
-
      
-
      
-
      
-
  
Net income (loss)   $ (1,669,908 )   $ (231,863 )   $ (952,644 )   $ (2,854,415 )

 

Year Ended 2024

 

   Property Investment Portfolio   Real Estate Services   Corporate and Unallocated   Consolidated 
Net revenues  $2,884,286   $909,003   $
-
   $3,793,289 
                     
Operating expenses (excluding depreciation and amortization)   1,053,287    369,792    909,094    2,332,173 
Depreciation and amortization   352,351    
-
    5,595    357,946 
Income (loss) from operations   1,478,648    539,211    (914,689)   1,103,170 
Interest expense   (576,745)   
-
    (119,927)   (696,672)
Other income   167,460    
-
    
-
    167,460 
Income (loss) before provision for income taxes   1,069,363    539,211    (1,034,616)   573,958 
Provision for income taxes   
-
    
-
    
-
    
-
 
Net income (loss)  $1,069,363   $539,211   $(1,034,616)  $573,958 

Total assets by segment on December 31, 2025 and 2024 were as follows:

 

   December 31,
2025		   December 31,
2024		 
         
Property investment portfolio  $13,160,412   $15,546,075 
Real estate services   50,262    121,139 
Corporate and unallocated   721,802    514,925 
   $13,932,476   $16,182,139 

 

All assets are located in the United States.