NOTE 13 – COMMITMENTS AND CONTINGENCIES

The Company may be subject, from time to time, to various legal proceedings and claims that arise in the ordinary course of business. As of June 30, 2026 and December 31, 2025, the Company was not subject to any material litigation or aware of any pending or threatened material litigation.

While the Company currently has no intent to sell any of its properties, if the Company were to sell properties in Texas, it has the potential to trigger Texas franchise tax for the Company. The amount of tax, if any, will depend on several factors and any future sales of Texas properties meeting the requirements of the Internal Revenue Code Section 1031 (like-kind exchanges), which are non-taxable, would result in no franchise tax being incurred. The Company has not recorded a tax liability for Texas franchise tax as it is considered contingent upon events not currently expected to occur.

The Company entered into tax protection agreements with certain partners that contributed property interests to the Company. Such agreements indemnify the contributing partners from incurring any tax consequences triggered by a taxable sale of properties and expire between September 2028 and April 2029. The Company has not recorded any tax liabilities in connection with tax protection agreements as they are considered contingent upon events that are not currently expected to occur.