NOTE 16 – SUBSEQUENT EVENTS

On September 29, 2025, PCY Holdings, LLC and PCYO Home Rentals, LLC, both a wholly owned subsidiary of the Company, entered into a debt Facility Agreement (Facility Agreement) with a new banking partner.  The Facility Agreement provides up to $10 million to finance new single-family rental homes. Under the Facility Agreement the Company guarantees payment and performance by its subsidiaries of obligations due under the Facility Agreement and related lending documents. The Facility Agreement allows for flexibility to close on multiple single-family rental homes over a short duration with a variable per annum interest rate equal to the Western Edition of the Wall Street Journal as Prime Rate, with a floor of 4.55%.  Under the Facility Agreement the Company and its subsidiaries have the option to consolidate multiple single-family rental homes into a term loan which would bear interest at a rate per annum equal to 5-year US CMT plus a margin of 2.75%. The term loan will be amortized over 25 years with a 5-year ballon. The Facilities Agreement also contains financial covenants and collateral requirements.

On October 20, 2025, the Company used proceeds from the Facility Agreement to fund the completed construction cost of five additional single-family rental homes.  As of the filing of this Form 10-K, the Company’s outstanding balance under the Facilities Agreement is $1.3 million.