Note 2 — Restatement of Previously Issued Consolidated Financial Statements

In connection with the preparation of our consolidated financial statements for the year ended December 31, 2025, the Company identified errors related to revenues and cost of revenue recognition in its previously issued (i) consolidated financial statements as of and for the year ended December 31, 2024 included in its Annual Report on Form 10-K for the year ended December 31, 2024 (the “Annual Period”), and (ii) unaudited interim condensed consolidated financial statements for each quarterly and year-to-date period included in its Quarterly Reports on Form 10-Q for the interim periods ended March 31, 2024, June 30, 2024, September 30, 2024, March 31, 2025, June 30, 2025 and September 30, 2025 (the “Interim Periods”, which, together with the Annual Period, the “Affected Periods”).

During 2024, the Company incorrectly recorded certain property management fee revenue inclusive of tenant rent revenues on a gross basis. Upon review of the underlying contractual arrangements and evaluation under ASC 606, Revenue from Contracts with Customers, management concluded that the Company acted as an agent rather than as a principal for these arrangements. As a result, the Company has corrected revenues during the Affected Periods to reduce property management revenue to the fees received (the “Revenues Adjustment”).

Additionally, the Company has determined that costs of revenue should be reduced equivalently to the amount of the revenues restated. As a result, the Company has recorded an adjustment to its consolidated financial statements during the Affected Periods (together with the Revenues Adjustment, the “Restatement Adjustments”), as the Company was previously incorrectly presenting payments to property owners inclusive of tenant rent related to tenant revenues as cost of revenues. 

The Company evaluated the materiality of these misstatements both qualitatively and quantitatively in accordance with Staff Accounting Bulletin (“SAB”) No. 99, Materiality, and SAB No. 108, Considering the Effects of Prior Year Misstatements in Current Year Financial Statements, and determined the effect of correcting these misstatements was material to the Affected Periods. As a result of the material misstatements, the Company has restated its consolidated financial statements for the Affected Periods in accordance with ASC 250, Accounting Changes and Error Corrections (the “Restated Consolidated Financial Statements”).

A reconciliation from the amounts previously reported for the Affected Periods to the restated amounts in the Restated Consolidated Financial Statements is provided for the impacted financial statement line items below for the consolidated statement of operations for the year ended December 31, 2024. The amounts labeled “Restatement Adjustments” represent the effects of the Restatement Adjustments.

The following tables present the effects of the Restatement Adjustments on the Company’s consolidated statements of operations for the year ended December 31, 2024:

Note 1 – Basis of Presentation and Summary of Significant Accounting policies and Note 15 – Segments have been updated and restated, as applicable, to reflect the impact of the Restatement Adjustments described above.

Refer to Note 3 Restatement of Previously Issued Unaudited Interim Condensed Consolidated Financial Statements for details of the effect of Restatement Adjustments on the interim periods.