Quarterly report [Sections 13 or 15(d)]

Property and Equipment

v3.26.3
Property and Equipment
 9 Months Ended
Sep. 30, 2026
Property, Plant, and Equipment [Abstract]  
Property and Equipment

Note 5 – Property and Equipment

 

On January 21, 2026, the Company entered a purchase, sale and escrow agreement with 901 Corporate Center, LP to acquire the commercial property located at 901 Corporate Center Drive, Monterey Park, California (the “Property”). The acquisition was completed on April 17, 2026, through the Company and its wholly owned subsidiary, Lusher Holding LLC. The aggregate purchase price was $17,700,000, exclusive of closing costs.

 

The Property consists of four parcels comprising approximately 10.73 acres, with approximately 100,743 square feet of rentable Class A office space and a four-level parking structure. The parking facilities include a solar-panel canopy that is subject to a lease arrangement. At the time of acquisition, the Property was approximately 99.2% occupied by approximately 16 tenants. The existing tenant leases were retained in connection with the acquisition, and the Company does not intend to materially alter their terms. Most of the leases in place at acquisition had remaining terms of approximately five to eight years.

 

The Company preliminarily allocated approximately $8,862,095 of the purchase price to the building and $5,148,306 to land, and the remainder to building improvements and equipment. These amounts represent the preliminary allocations reflected in the Company’s existing accounting records and remain subject to reconciliation with the final purchase price allocation, including closing costs and any other amounts properly capitalized.

 

The Property is intended to serve both as an income-producing commercial real estate investment and as the Company’s principal headquarters. The Company plans to use approximately 2,000 square feet of the Property for its own operations.

 

At September 30, 2026 and December 31, 2025, property and equipment consisted of the following:

           
    September 30, 2026     December 31, 2025  
Building   $ 8,862,095     $ –  
Land     5,148,306       –  
Building improvement     595,455       14,620  
Furniture and fixtures     43,348       42,676  
Equipment     3,287,240       168,749  
Software     1,995       1,995  
Total cost     17,938,439       228,040  
Less accumulated depreciation     (588,505 )     (161,335 )
Property and equipment, net   $ 17,349,934     $ 66,705  

 

The building is being depreciated over an estimated 39-year useful life.  Building improvements and acquired equipment are being depreciated over 5-15 years depending on their estimated useful life, Depreciation expense for the nine months ended September 30, 2026 and nine months ended September 30, 2025 amounted to $425,243 and $17,231, respectively.