Generation Income Properties Converts $120K Debt to Common Stock

What Happened

• Generation Income Properties, Inc. (and its operating partnership) filed an 8-K reporting a debt conversion on July 24, 2026. The Operating Partnership converted $120,000 of outstanding debt owed to the David E. Sobelman Revocable Trust (under a Promissory Note dated May 29, 2025) into common stock of the Company.
• The conversion used a price of $0.74 per share (the Nasdaq Official Closing Price on July 23, 2026). Fractional shares were rounded up, resulting in issuance of 162,163 shares of common stock to the Sobelman Trust. The Converted Debt was paid in full and the outstanding balance under the Note was reduced by $120,000.

Key Details

• Parties: Generation Income Properties, Inc.; Generation Income Properties, L.P. (operating partnership); David E. Sobelman Revocable Trust.
• Converted amount: $120,000 of debt (from a Note originally dated May 29, 2025 with original principal $610,000).
• Conversion price: $0.74 per share (Nasdaq Official Closing Price on July 23, 2026); Conversion completed July 24, 2026; 162,163 shares issued (fractional shares rounded up).
• Company statement: Together with a preferred equity amendment disclosed in a July 17, 2026 8-K, the company believes it now has stockholders’ equity in excess of $5 million. Nasdaq will continue to monitor compliance with its Stockholders’ Equity Requirement.

Why It Matters

• This transaction reduces the company’s debt and increases its outstanding common shares, which affects capital structure and shareholder equity. For investors, the conversion can improve the company’s balance sheet by lowering liabilities but dilutes existing common shareholders by adding new shares.
• The company’s statement that stockholders’ equity exceeds $5 million is material because Nasdaq requires minimum equity levels for continued listing; however, Nasdaq will keep monitoring the company and could pursue delisting if compliance is not evident in the next periodic report.
• The issuance of shares in this transaction was reported under the filing’s unregistered sales disclosure (Item 3.02), and the full Debt Conversion Agreement is attached as Exhibit 10.1 to the 8-K.