Note 6 – Rental Operations

The Company began generating rental income from the Property following completion of the acquisition on April 17, 2026. Rental income is primarily derived from commercial tenants occupying office space at the Property and from other contractual arrangements associated with the Property, including the applicable lease arrangement for the solar-panel canopy. Rental income is recognized in accordance with the terms of the underlying agreements and applicable accounting principles.

For the three and nine months ended September 30, 2026, rental revenue was approximately $789,128 and $1,441,078, respectively. No rental revenue was generated in 2025 as the Company purchased the property on April 17, 2026.

Property operating expenses for the three and nine months ended September 30, 2026, consisted principally of property management fees, repairs and maintenance, utilities, insurance, property taxes, other operating expenses. Such expenses totaled approximately $400,655 and $660,318, respectively. Depreciation related to the building was $406,868 for the nine month period ended September 30, 2026 and has been included in depreciation expense on the accompanying statement of operations.

The Company uses third-party property management services for the Property. Property management activities include, as applicable, tenant coordination, rent collection, lease administration, maintenance coordination and other customary property operations.

Tenant concentration is evaluated based on rental revenue and, where relevant, accounts receivable. As of September 30, 2026, the Property had approximately 12 tenants and an occupancy rate of approximately 99.2%.

The Property was financed in part through an $11,050,000 term loan from East West Bank obtained in connection with the acquisition (See Note 9 to the financial statements). The loan bears interest at 6.25% for the first three years and thereafter at the Wall Street Journal Prime Rate plus 0.25%, subject to a minimum interest rate of 6.25%, under the loan agreement. The loan is scheduled to mature on April 1, 2036. The Company and its Chief Executive Officer have provided guarantees as described in the underlying loan documentation.

Rental income from operating leases, is recognized on a straight-line basis over the lease term once we have determined that the collectability of substantially all of the lease payments is probable. Accounts receivable, included $127,487 of rent receivables at September 30, 2026.

The following operating lease maturity analysis presents the future contractual lease payments to be received by the Company as of September 30, 2026: