Note 12 – Subsequent Events

The Company has evaluated subsequent events through the date these financial statements were issued and has identified the following event requiring disclosure:

Reverse Stock Split

On July 9, 2026, the Company completed a 1-for-10 reverse stock split of the Company's common stock, par value $0.01 per share (the "Reverse Stock Split"). The Company's common stock began trading on a split-adjusted basis on The Nasdaq Capital Market at market open on July 10, 2026.

The reverse split has been retroactively reflected for all historical periods presented. The total number of authorized shares of common stock was not changed by the Reverse Stock Split.

Proportional adjustments were made to all outstanding warrants, restricted stock, restricted stock units, and similar securities. Specifically, each of the Company's publicly traded warrants became exercisable for 0.10 shares of common stock, and the exercise price of the warrants was adjusted on a 10:1 basis, increasing from $10.00 per share to $100.00 per share. The exchange ratios applicable to the Operating Partnership's Series A Redeemable Preferred Units, Series B-1 Preferred Units and Series B-2 Preferred Units were similarly adjusted for the Reverse Stock Split. All share and per-share amounts in these condensed consolidated financial statements have been retroactively adjusted to reflect the Reverse Stock Split for all periods presented.

Sale of 991 Nut Tree Road, Vacaville, California (GSA)

On July 15, 2026, the Company completed the sale of the Vacaville Property, an unaffiliated third party, for a gross sales price of $2,475,000. After closing costs, broker commissions, and prorations, the Company received net cash proceeds of $2,356,757, were utilized to further reduce the LC2-NNN Pref, LLC preferred interest. The Company recognized a gain on sale of approximately $300,742.

Amendments to Series B-1 and Series B-2 Preferred Units

On July 16, 2026, the Operating Partnership, the Company, LMB Owenton I LLC and Lloyd M. Bernstein entered into an Eighth Amendment and a Ninth Amendment, respectively, to the Amended and Restated Limited Partnership Agreement, amending and restating the terms of the Series B-1 Preferred Units and Series B-2 Preferred Units. Pursuant to these amendments, the holders irrevocably waived their existing cash redemption rights in exchange for a right to tender their units for common stock (subject to the Company's election to settle in cash or a combination of cash and stock), and the Series B-2 Preferred Return was increased from $0.33 to $0.39 per unit per year. See Note 8 - Equity for further discussion.

Debt Conversion – Related Party

On July 24, 2026, the Operating Partnership, the Company and the Sobelman Trust (the trustee of which is the Company's Chief Executive Officer) entered into a Debt Conversion Agreement, pursuant to which $120,000 of outstanding debt owed by the Operating Partnership to the Sobelman Trust was converted into 162,163 shares of the Company's common stock. See Note 10 - Related Party Transactions for further discussion.

Nasdaq Stockholders' Equity Compliance

On August 10, 2026, the Company received formal notification from Nasdaq confirming that the Company has regained compliance with Nasdaq Listing Rule 5550(b)(1), which require issuers listed on The Nasdaq Capital Market to maintain a minimum of $2,500,000 in stockholders’ equity (the “Equity Rule”). As stated in Nasdaq’s notification, the Company will be subject to a mandatory panel monitor for a period of one year from August 10, 2026. If, within that one-year monitoring period, the Nasdaq Listing Qualifications staff (the “Staff”) finds the Company is again out of compliance with the Equity Rule, then the Staff will issue a delist determination letter, and the Company will have an opportunity to request a new hearing with the initial Panel or a newly convened hearing panel if the initial Panel is unavailable. Notwithstanding Nasdaq Listing Rule 5810(c)(2), the Company will not be permitted to provide the Staff with a plan of compliance with respect to a deficiency under the Equity Rule that arises during the one-year monitoring period, and the Staff will not be permitted to grant additional time for the Company to regain compliance with respect to such deficiency.

Nasdaq Minimum Bid Requirement Compliance

On August 6, 2026, we received written notice from Nasdaq staff that we are not eligible for a second 180-day compliance period to regain compliance with the $1.00 minimum bid price requirement under Nasdaq Listing Rule 5550(a)(2) (the “Minimum Bid Requirement”) because we do not satisfy the $1,000,000 minimum market value of publicly held shares requirement under Listing Rule 5550(b)(1)(A). The notice stated that this additional deficiency is a further basis for delisting our securities and will be considered by the Panel together with the pending matter regarding the Equity Requirement described above. On August 13, 2026, we submitted our written views on this additional deficiency to the Panel.