Genesis Financial 10-Q 12 May 15 2015 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 31, 2015
Document and Entity Information
Entity Registrant Name	Genesis Financial Inc
Document Type	10-Q
Document Period End Date	31-Mar-15
Amendment Flag	FALSE
Entity Central Index Key	1183082
Current Fiscal Year End Date	-19
Entity Common Stock, Shares Outstanding	12,100,120
Entity Filer Category	Accelerated Filer
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1
Entity Incorporation, State Country Name	Washington
Entity Incorporation, Date of Incorporation	24-Jan-02

GENESIS_FINANCIAL_INC_Balance_

GENESIS FINANCIAL, INC. Balance Sheets (interim period unaudited) (USD $)	Mar. 31, 2015		Dec. 31, 2014
CURRENT ASSETS:
Cash and cash equivalents	$63,437		$64,493
Interest and other receivables	75,255		73,747
Investments in real estate limited liability companies	248,824		248,774
Convertible note receivable			150,000
Loans held for sale	610,729		611,400
Real estate owned	44,392		44,392
Total current assets	1,042,637		1,192,806
NON-CURRENT ASSETS:
Long-term investments, at cost	1,400,000		1,250,000
Investments - available for sale	147,609		295,217
Real estate leasehold interest, net of accumulated amortization of $5,161 and $29,243, respectively	584,846		590,007
Rental Property, net of accumulated depreciation of $536 and $2,590, respectively	79,400		82,944
Office equipment, net of accumulated depreciation of $341 and $4,541, respectively	3,050		3,391
Total non-current assets	2,214,905		2,221,559
Total assets	3,257,542		3,414,365
CURRENT LIABILITIES:
Line of credit, affiliated company	1,265,000		1,280,000
Line of credit, bank	125,000		85,000
Note payable	36,442		38,041
Other current liabilities	20,646		19,775
Total current liabilities	1,447,088		1,422,816
LONG-TERM LIABILITIES:
Convertible note payable to officer	250,000		250,000
COMMITMENT AND CONTINGENCIES	0	[1]	0	[1]
STOCKHOLDERS' EQUITY:
Series B Preferred stock, $1.00 par value; 2,290,000 authorized, 1,639,500 and 1,649,500 issued and outstanding, respectively	1,639,500		1,649,500
Common stock, $.001 par value; 100,000,000 authorized, 12,100,120 and 12,075,120 issued and outstanding, respectively	12,100		12,075
Additional paid-in capital	6,600,752		6,590,777
Accumulated deficit	-6,339,507		-6,306,020
Accumulated other comprehensive income (loss)	-352,391		-204,783
Total stockholders' equity	1,560,454		1,741,549
Total liabilities and stockholders' equity	$3,257,542		$3,414,365
[1]	Note 6

Statement_of_Financial_Positio

Statement of Financial Position - Parenthetical (USD $)	Mar. 31, 2015	Dec. 31, 2014
Statement of financial position
Preferred Stock, Par Value	$1	$1
Preferred Stock, Shares Authorized	2,290,000	2,290,000
Preferred Stock, Shares Issued	1,639,500	1,649,500
Preferred Stock, Shares Outstanding	1,639,500	1,649,500
Common Stock, Par Value	$0.00	$0.00
Common Stock, Shares Authorized	100,000,000	100,000,000
Common Stock, Shares Issued	12,100,120	12,075,120
Common Stock, Shares Outstanding	12,100,120	12,075,120
Accumulated depreciation, equipment	$341	$4,541
Accumulated amortization, real estate leasehold interest	5,161	29,243
Accumulated depreciation, rental property	$536	$2,590

GENESIS_FINANCIAL_INC_Condense

GENESIS FINANCIAL, INC. Condensed Statements of Operations and Comprehensive Income (Loss) (Unaudited) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
REVENUE:
Interest, processing fees and other income	$19,214	$191,870
Rental income	16,500	14,540
Net revenues	35,714	206,410
EXPENSES:
Loss (income) on investment in real estate LLC	-48	12,155
Salaries	12,750	12,750
Interest expense, related party	5,041	5,041
Interest expense, other	1,875	2,644
Depreciation and amortization	6,037	13,894
Office occupancy and other	43,545	24,430
Total operating expenses	69,200	70,914
NET INCOME (LOSS)	-33,487	135,496
COMPREHESIVE INCOME (LOSS):
Unrealized gain (loss) on available for sale securities	-147,608	-301,317
COMPREHESIVE INCOME (LOSS)	($181,095)	($165,821)
BASIC AND DILUTED EARNINGS (LOSS) PER SHARE	$0	$0.01
WEIGHTED AVERAGE SHARES: BASIC	12,078,176	11,575,120
WEIGHTED AVERAGE SHARES: DILUTED	12,078,176	16,743,897

GENESIS_FINANCIAL_INC_Condense1

GENESIS FINANCIAL, INC. Condensed Statements of Cash Flows (Unaudited) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Statement of cash flows
CASH FLOWS FROM OPERATING ACTIVITIES	($24,457)	$297,010
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings (repayment) line of credit with affiliated company, net	-15,000	-40,000
Borrowings (repayment) from line of credit from bank, net	40,000	-135,000
Payments on notes payable	-1,599	-19,590
Net cash provided by (used in) financing activities	23,401	-194,590
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	-1,056	102,420
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	64,493	52,498
CASH AND CASH EQUIVALENTS AT END OF PERIOD	63,437	154,918
NONCASH INVESTING AND FINANCING TRANSACTIONS
Preferred stock converted to common stock	10,000
Convertible note receivable settled with investment	$150,000

Note_1_Organization_and_Summar

Note 1 - Organization and Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2015
Notes
Note 1 - Organization and Summary of Significant Accounting Policies:	NOTE 1 — ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
	Organization:
	Genesis Financial, Inc. (“the Company” or “GFI”) was incorporated in Washington State on January 24, 2002. The Company is primarily engaged in the business of purchasing and selling real estate receivable loans and periodically providing bridge capital funding.  Loans consist of real estate loans and mortgage notes collateralized by primarily first position liens on residential and commercial real estate.  The loans collateralized by real estate are typically non-conventional either because they are originated as a result of seller financing, or the underlying property is non-conventional.
	The Company invests in loans using investor funds, equity funds and funds generated from external borrowings including a line of credit facility from an affiliated stockholder.
	Summary of Significant Accounting Policies:
	Use of estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period.  Significant estimates used herein include those relating to management’s estimate of fair value of loans held for sales, real estate owned, and long-term investments.  It is reasonably possible that actual results could differ from those and other estimates used in preparing these financial statements and such differences could be material.
	Fair value measurements - The following information for each class of assets and liabilities that are measured at fair value is disclosed:
	1.       the fair value measurement;
	2.       the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets or liabilities (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3);
	3.       for fair value measurements using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following:
	a.       total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings, and a description of where those gains or losses included in earnings  are reported in the statement of operations;
	b.       the amount of these gains or losses attributable to the change in unrealized gains or losses relating to those assets or liabilities still held at the reporting period date and a description of where those unrealized gains or losses are reported;
	c.        purchases, sales, issuances, and settlements (net); and
	d.       transfers into and/or out of Level 3.
	4.       the amount of the total gains or losses for the period in (3)(a) included in earnings that are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held at the reporting date and a description of where those unrealized gains or losses are reported in the statement of operations; and
	5.       in annual periods only, the valuation technique(s) used to measure fair value and a discussion of changes in valuation techniques, if any, during the period.
	Real estate leasehold interest – Leasehold interests in real estate are stated at cost unless circumstances indicate that cost cannot be recovered, in which case, an adjustment to the carrying value of the property is made to reduce it to its estimated fair value.   Project costs clearly associated with the development of the leasehold interest are capitalized. As portions of the leasehold interest are rented, depreciation expense is recognized over the term of the leasehold interest. Rental income received on the interests is recognized in the period earned.
	Loans held for sale – Loans held for sale are initially recorded at the lower of cost or fair value.  Loans held for sale are measured at fair value on a recurring basis.   Fair value for these loans is determined by assessing the probability of borrower default using historical payment performance and available cash flows to the borrower, then projecting the amount and timing of cash flows, including collateral liquidation if repayment weaknesses exist.  The Company considers any valuation inputs related to loans held for sale to be Level 3 inputs. Interest on loans held for sale is included in interest income during the period held for sale. Typically, the Company attempts to sell loans three to twelve months after acquisition. It is the policy of the Company not to hold any loans for investment purposes.
	Real estate owned – Real estate owned (“REO”) (acquired through a loan default) is recorded at fair value on a non-recurring basis.  Upon transfer of a loan held for sale to REO, properties are recorded at amounts which are equal to fair value of the properties based on the following inputs: (1) appraisal provided by a certified appraiser, (2) BPO (Broker’s Pricing Opinion) provided by a qualified real estate broker, (3) site inspection by qualified management of the Company, or (4) a combination of all of the above.  Periodically, non-recurring fair value adjustments to REO are recorded to reflect partial write-downs based on the same inputs.  The Company considers any valuation inputs related to REO to be Level 3 inputs.  The individual carrying values of these assets are reviewed for impairment at least annually and any additional impairment charges are expensed to operations.
	Income tax – Deferred taxes are provided on the liability method whereby deferred tax assets are recognized for deductible temporary differences and deferred tax liabilities are recognized for taxable temporary differences.  Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets, subject to a valuation allowance, are recognized for future benefits of net operating losses being carried forward.  The Company effective tax rate for 2015 is expected to be 0%.
	Earnings per share – Basic earnings per common share have been computed on the basis of the weighted-average number of common shares outstanding during the period presented.  Diluted earnings per common share are computed on the basis of the number of shares that are currently outstanding plus the number of shares that would be issued pursuant to outstanding warrants, stock options and common stock issuable on conversion of preferred stock unless such shares are deemed to be anti-dilutive such as when a net loss is present.  The dilutive effect of convertible debt and outstanding securities, in periods of future income, would be as follows as of March 31, 2015 and March 31, 2014:
		March 31,
		2015	2014
	Stock options	261,000	1,261,000
	Convertible preferred stock	4,098,750	4,123,750
	Convertible debt	625,000	625,000
	Total possible dilution	4,984,750	6,009,750
	Reclassifications – Certain reclassifications have been made to conform prior periods’ data to the current presentation. These reclassifications have no effect on the results of reported operations or stockholders’ equity.

Note_2_Loans_Held_For_Sale

Note 2 - Loans Held For Sale	3 Months Ended
	Mar. 31, 2015
Notes
Note 2 - Loans Held For Sale:	NOTE 2 — LOANS HELD FOR SALE:
	The Company's fair value of loans held for sale consisted of the following:
			March 31,		31-Dec-14
			2015
	Residential	$	318,204	$	319,733
	Land		10,337		10,337
	Commercial		282,188		281,330
	Total	$	610,729	$	611,400
	The following table presents a reconciliation of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the quarters ended March 31, 2015 and 2014:
			March 31,
			2015		2014
	Beginning Balance	$	611,400	$	1,024,027
	New loans		-		150,000
	Principal payments		-1,529		-14,734
	Proceeds from loans paid in full		-		-372,641
	Gain on loans paid in full		-		166,300
	Proceeds from sale of loans		-		-70,291
	Loss on sale of loans		-		-3,616
	Repossession expenses		858-		-846
	Ending Balance	$	610,729	$	878,199
	During the quarter ended March 31, 2014, the Company sold five loans with a basis of $73,907 for $70,291 in cash. A loss of $3,616 was recognized. These loans were sold to a related party (see Note 8). Also during the first quarter of 2014, $166,300 in income was recognized as a result of three loans carried at a discount being paid in full.

Note_3_Real_Estate_Owned

Note 3- Real Estate Owned	3 Months Ended
	Mar. 31, 2015
Notes
Note 3- Real Estate Owned:	NOTE 3- REAL ESTATE OWNED:
	The Company's fair value of REO consisted of the following:
			March 31,		31-Dec-14
			2015
	Land	$	40,382	$	40,382
	Commercial		4,010		4,010
	Total	$	44,392	$	44,392
	The following table presents the change in balance sheet carrying values associated with REO for the quarters ended March 31, 2015 and 2014:
			March 31,
			2015		2014
	Beginning Balance	$	44,392	$	392,885
	Proceeds from sales of REO		-		-11,241
	Gain on sale of REO		-		2,511
	Net change in holding costs		-		907
	Ending Balance	$	44,392	$	385,062

Note_4_Other_Assets

Note 4 - Other Assets	3 Months Ended
	Mar. 31, 2015
Notes
Note 4 - Other Assets:	NOTE 4 — OTHER ASSETS:
	Long term investments:
	Flyback Energy, Inc.:
	On November 23, 2010, the Company closed the purchase of an equity interest in Flyback Energy, Inc., for $1,200,000.  The purchase was for 2,666,667 share of Series “B” Preferred Stock from Flyback Energy, Inc., a closely held Washington corporation payable on an installment basis.  On April 25, 2011, the Company purchased 85,274 shares of Series “C” Preferred Stock for $50,000 which is convertible at $.60 per share and bears a 5% dividend rate.
	The Flyback Series "B" Preferred shares are convertible into Flyback common shares on a one for one (1:1) basis and the conversion pricing is subject to adjustments for certain diluting issues of common stock, subdivisions or combinations of common stock, reclassifications, exchanges and/or substitutions of stock. The Company is due 421,480 shares of common stock because of the dilution provision.
	Flyback Energy, Inc. is a privately-held company that has developed a unique and proprietary electronic switch design that offers control over electrical power and magnetic fields.
	Digi Outdoor Media, Inc.:
	In 2014, the Company loaned Placer Creek Mining Company (“Placer”) $150,000.   The loan bore interest at a rate of 5.0% and the Company had an option to convert any or all of the amount due into a equity private placement of Placer.    Placer is a related party to the Company (see note 8)
	Placer completed the private placement.   On February, 24, 2015, the Company subsequently converted the note receivable into 300,000 shares of common stock of Digi Outdoor Media, Inc. (“Digi”), the successor in interest to Placer.     The Company determined that the fair value of the shares received on the conversion to be $150,000 based upon the note receivable balance of $150,000 because Digi is not publicly traded and has had no recent cash sale of its common stock.     The fair value was determined using Level 2 inputs under the fair value hierarchy.
	Digi Outdoor Media, Inc. is a startup company in the business of building and leasing outdoor advertising signs.
	Investments in Available for Sale Securities:
	Ambient Water Corporation (Formerly AWG International Water Corp.):
	The Company purchased 109,906 shares of the AWG International Water Corp, a Nevada corporation, (“AWGI”) common stock for $500,000 ($250,000 each in 2010 and 2011).  In July 2012, AWGI was acquired by MIP Solutions, Inc. in a share exchange transaction (the "Acquisition").  In connection with the Acquisition, the Company’s 109,906 shares of AWGI common stock were converted into 7,380,433 shares or 6.25% of AWG International Water Corp (formerly MIP Solutions, Inc.).
	At March 31, 2015 the quoted market value of AWGI was $0.02 per share or $147,609 resulting in an unrealized loss of $147,609 for the quarter ended March 31, 2015. The investment is measured using Level 1 fair value inputs.
	Investments in Real Estate Limited Liability Companies:
	At the end of 2012, the Company acquired investments in two Washington state real estate limited liability companies. In 2013, the Company contributed its investment in one real estate owned property with a basis of $51,600 to a newly formed limited liability company in exchange for a 12.9% interest in the new company. In 2014, the Company contributed its investment in one real estate owned property with a basis of $47,925 to a newly formed limited liability company in exchange for 31.95% interest in the new company.
	Investments are accounted for using the equity method.  During the quarters ended March 31, 2015 and 2014, the Company recorded an (income) loss of ($48) and $12,155, respectively. Losses generally represent our portion of this real estate company’s loss for the same period.
	Rental Properties:
	At the end of 2013, the Company foreclosed on a loan previously held for sale in Lebanon, Oregon through the bankruptcy courts, the property is currently being operated as Duffy’s Bar. The bar was subsequently leased on a three (3) year lease agreement for $1,500 per month. During the quarter ended March 31, 2015, the company recognized $4,500 in rental income. This is a commercial building being depreciated over thirty-nine (39) years. The company recorded depreciation of $536 for the quarter ended March 31, 2015.
	Real Estate Leasehold Interest:
	On May 31, 2013, the Company completed the acquisition of a real property leasehold interest in approximately 63 acres located in Dunn County, North Dakota, (the "Halliday Project").  The leasehold was acquired by assignment of a lease between Mr. Clint L. Lohman (“Lohman”), Lessee and the Lessors. The Halliday Project, as presently developed, consist of fifty (50) developed residential lots and undeveloped land. Mr. Lohman was elected as a director of GFI at the October 22, 2013 annual shareholder meeting.
	Lohman initially acquired the property in September 2012 and commenced development of fifty (50) RV/residential lots. Lohman invested $353,857 into the Project.  The Company loaned Lohman an additional $353,857 which was used for project development.  The development is currently approved for a total of 100 lots in the city of Halliday, North Dakota.
	In 2013, the Company acquired Lohman's interest in the Halliday Project in a share exchange transaction in 2013. GFI issued 589,762 common shares valued at $0.45 per share for a value of $265,393. The Company also cancelled Lohman’s outstanding loan balance of $353,857 at the time of the share exchange. Total consideration for the leasehold interest was $619,250. The Company owns the Halliday Project leasehold interest and intends to complete the development of the additional 50 lots at an estimated cost of $300,000. The Company may place recreational vehicles, mobile homes, or construct cabins on the lots and offer them for rent or lease. The Company recorded amortization of $5,161 and $13,762 for the quarters ended March 31, 2015 and 2014, respectively. At the quarter ended March 31, 2015, the Company had thirteen lots leased and had rental income for the three month ended March 31, 2015 and 2014 of $12,000 and 10,040, respectively.
	The lease term is fifteen (15) years and commenced on September 15, 2012.  The Company has an option to renew the lease for an additional 15 year term. The monthly rent on the lease is Fifty ($50.00) Dollars for each occupied and rented trailer, cabin or lot.  The Company is obligated to pay any and all real and personal property taxes, general taxes, special assessments and other charges levied against the property and its improvements.   During the lease term, the Company will own title to all of the improvements and personal property.  At the expiration of the lease or termination, all improvements and personal property located on the premises will revert to the Lessors.

Note_5_Lines_of_Credit

Note 5 - Lines of Credit	3 Months Ended
	Mar. 31, 2015
Notes
Note 5 - Lines of Credit:	NOTE 5 — LINES OF CREDIT:
	On June 27, 2012, GFI renewed a $250,000 line of credit, bearing five (5%) percent interest with Riverbank.  At March 31, 2015 the balance owing is $125,000. The line has a term of twelve months, and an origination fee of 1/2%, or $1,250. Accrued interest is paid monthly. The Riverbank line of credit is senior to the Coghlan Family Corporation, Inc. (“CFC”) line of credit and is collateralized by the assets of GFI.  On June 30, 2014 the line of credit was extended to July 1, 2015 at which time the loan renewed at a four and a half (4.5%) percent interest rate with a renewal fee of ½%, or $1,250. The Riverbank line requires that the CFC line may not be paid down lower than the amount owing to Riverbank at any time during the term of the loan.  The line is payable on demand and is personally guaranteed by John R. and Wendy Coghlan, related parties of the Company.
	The Company has a $2,500,000 Warehouse Line of Credit Promissory Note Agreement with the CFC, with a balance owing of $1,265,000 at March 31, 2015 and $1,280,000 at December 31, 2014. CFC is an affiliated company controlled by John R. Coghlan. At the time the agreement was made the default interest rate was twelve (12%) percent.  Interest was payable monthly. The line had a term of 12 months and an origination fee of 1/2% or $12,500. The credit line is collateralized by all of GFI’s assets and is subordinate to the Riverbank line of credit. The line of credit agreement required that the Company maintain a debt to equity ratio of no greater than 3.0. Borrowings under the line are personally guaranteed by Michael A. Kirk, the Secretary of the Company. Because of the economic conditions, CFC had agreed to waive the interest and origination fees starting October 1, 2010 and had also agreed to waive the 3.0 debt to equity ratio requirement as well as the 12% default rate.

Note_6_Notes_Payable

Note 6 - Notes Payable	3 Months Ended
	Mar. 31, 2015
Notes
Note 6 - Notes Payable	NOTE 6 — NOTES PAYABLE:
	Convertible note payable to officer: On December 15, 2010, the Company entered into a convertible note agreement for $250,000 with John R. Coghlan, a related party (see Note 8). The note accrues interest at eight (8%) percent per annum with interest and balance initially due on December 15, 2012.  The note is convertible at any time by Mr. Coghlan into one (1) share of the Company’s Series “B” Preferred stock for every $1.00 outstanding of the note payable and related accrued interest.  In connection with the issuance of this note, the Company recognized a beneficial conversion feature of $128,750 that resulted in a discount to the note payable. The discount was amortized into earnings over the initial term of the note and was fully amortized at December 31, 2012. The note is collateralized by 290,000 shares of the Company’s Series “B” Preferred stock. On October 16, 2012, the Company and Coghlan agreed to extend the due date of the note to December 15, 2016.
	Note payable: In 2013, the Company assumed a note payable totaling $62,699 relating to a loan it had made in 2005.   When the Company funded the loan in 2005, it sold 100% of its interest to various investors. During 2013, the Company began foreclosure proceedings on behalf of the investors because the borrower was delinquent on payments. During the proceedings, it was determined that the Company had failed to obtain first position in the underlying property and that a separate creditor was in first position. To uphold its agreement with the investors, the Company assumed the balance of the note with the creditor and recognized a loss for the entire amount in 2013. The term of the assumed note is 9.5% until paid in full and monthly payments are $832. At March 31, 2015 the balance owing is $36,442.

Note_7_Series_B_Preferred_Stoc

Note 7 - Series "B" Preferred Stock	3 Months Ended
	Mar. 31, 2015
Notes
Note 7 - Series "B" Preferred Stock	NOTE 7 — SERIES B PREFERRED STOCK:
	On November 11, 2010 the Company filed Articles of Amendment to the Amended and Restated Articles of Incorporation creating 2,000,000 shares of Series B Preferred Stock.  The designated Series B Preferred Stock consists of 2,000,000 shares with a par value $1.00; is non-dividend bearing, convertible to Common Stock at $.40 per share subject to any recapitalization. The Company subsequently amended the share amount to 2,290,000. The holders of the Preferred Stock will be entitled to receive, prior and in preference to any Distributions of any assets of the Corporation to the holders of the Common Stock.  Each share of the Preferred Stock is convertible into two and one-half common stock shares at the option of the holder.  Each share of Series B Preferred Stock can be automatically converted immediately prior to the closing of a firm commitment underwritten initial public offering pursuant to an effective registration statement filed under the Securities Act of 1933 or upon the receipt by the Corporation of a written request for such request for such conversion from the holders of the majority of the Series B Preferred Stock holders.
	During the three month period ending March 31, 2015 holders of 10,000 shares of Series B preferred stock converted their shares into 25,000 shares of common stock. As of March 31, 2015, there were 1,639,500 shares of Series B convertible Preferred stock outstanding. No preferred shares were converted during the first quarter 2014.

Note_8_Relatedparty_Transactio

Note 8- Related-party Transactions	3 Months Ended
	Mar. 31, 2015
Notes
Note 8- Related-party Transactions	NOTE 8— RELATED-PARTY TRANSACTIONS:
	Related parties are defined as Officers, Directors, and/or those Shareholders owning or controlling more than 5% of the common stock of GFI, or any entities that are owned or controlled by Officers, Directors, and/or those Shareholders owning or controlling more than 5% of the common stock of GFI.
	Coghlan Family Corporation, Coghlan, LLC and West 3773 Fifth, LLC are controlled by John R. Coghlan, a Company director, CFO and majority shareholder. Coghlan Family Corporation is owned 100% by Coghlan, LLC, which is owned by the Coghlan family members. John R. and Wendy Coghlan (husband and wife) collectively own 35.65% of Coghlan, LLC and are co-managers. West 3773 Fifth, LLC is owned 100% by John and Wendy Coghlan (husband and wife). Genesis Financial Corporation is a company which is owned 100% by Michael Kirk, who is a director and officer of Genesis Financial, Inc. Genesis Financial, Inc. provides accounting, office services and supplies, and office space for his services provided to Genesis Financial Corporation.  The services are valued at $1,500 per month. Michael Lavigne is an officer and director of Placer Creek Mining Company. Mr. Lavigne is a director of Genesis Financial, Inc.
	In addition to transactions described in Notes 4, 5 and 6, Genesis Financial, Inc. had the following related party transactions for the quarters ended March 31, 2015 and year ended December 31, 2014.
	John R. Coghlan
	On June 30, 2014, John R Coghlan personally guaranteed our Riverbank line of credit.
	On April 30, 2014, John R Coghlan exercised 250,000 common stock options at an option price of $0.20 per share.
	Coghlan Family Corporation “CFC”
	There was no activity for the quarter ended March 31, 2015 and year ended December 31, 2014.
	Coghlan, LLC
	There was no activity for the quarter ended March 31, 2015 and year ended December 31, 2014.
	West 3773 Fifth, LLC
	As of March 31, 2015, the Company continued a month-to-month tenancy with 3773 West Fifth, LLC, a company owned and controlled by John and Wendy Coghlan. The monthly rent is $1,250.
	Genesis Finance Corporation “GFC”
	On January 31, 2014, GFC purchased $73,907 interest in five loans held for sale by the Company. The Company recognized a loss of $3,616 for the purchase.
	Michael Lavigne
	During the first quarter 2014, the Company loaned Placer Creek Mining Company $150,000.
	During the first quarter 2015, the Company converted the Placer Creek Mining Company loan of $150,000 to 300,000 shares of Digi Outdoor Media, Inc., the successor to Placer Creek Mining Company.

Note_1_Organization_and_Summar1

Note 1 - Organization and Summary of Significant Accounting Policies: Use of Estimates (Policies)	3 Months Ended
	Mar. 31, 2015
Policies
Use of Estimates	Use of estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period.  Significant estimates used herein include those relating to management’s estimate of fair value of loans held for sales, real estate owned, and long-term investments.  It is reasonably possible that actual results could differ from those and other estimates used in preparing these financial statements and such differences could be material.

Note_1_Organization_and_Summar2

Note 1 - Organization and Summary of Significant Accounting Policies: Fair Value Measurements (Policies)	3 Months Ended
	Mar. 31, 2015
Policies
Fair Value Measurements	Fair value measurements - The following information for each class of assets and liabilities that are measured at fair value is disclosed:
	1.       the fair value measurement;
	2.       the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets or liabilities (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3);
	3.       for fair value measurements using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following:
	a.       total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings, and a description of where those gains or losses included in earnings  are reported in the statement of operations;
	b.       the amount of these gains or losses attributable to the change in unrealized gains or losses relating to those assets or liabilities still held at the reporting period date and a description of where those unrealized gains or losses are reported;
	c.        purchases, sales, issuances, and settlements (net); and
	d.       transfers into and/or out of Level 3.
	4.       the amount of the total gains or losses for the period in (3)(a) included in earnings that are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held at the reporting date and a description of where those unrealized gains or losses are reported in the statement of operations; and
	5.       in annual periods only, the valuation technique(s) used to measure fair value and a discussion of changes in valuation techniques, if any, during the period.

Note_1_Organization_and_Summar3

Note 1 - Organization and Summary of Significant Accounting Policies: Real Estate, Policy (Policies)	3 Months Ended
	Mar. 31, 2015
Policies
Real Estate, Policy	Real estate leasehold interest – Leasehold interests in real estate are stated at cost unless circumstances indicate that cost cannot be recovered, in which case, an adjustment to the carrying value of the property is made to reduce it to its estimated fair value.   Project costs clearly associated with the development of the leasehold interest are capitalized. As portions of the leasehold interest are rented, depreciation expense is recognized over the term of the leasehold interest. Rental income received on the interests is recognized in the period earned.

Note_1_Organization_and_Summar4

Note 1 - Organization and Summary of Significant Accounting Policies: Loans held for sale (Policies)	3 Months Ended
	Mar. 31, 2015
Policies
Loans held for sale	Loans held for sale – Loans held for sale are initially recorded at the lower of cost or fair value.  Loans held for sale are measured at fair value on a recurring basis.   Fair value for these loans is determined by assessing the probability of borrower default using historical payment performance and available cash flows to the borrower, then projecting the amount and timing of cash flows, including collateral liquidation if repayment weaknesses exist.  The Company considers any valuation inputs related to loans held for sale to be Level 3 inputs. Interest on loans held for sale is included in interest income during the period held for sale. Typically, the Company attempts to sell loans three to twelve months after acquisition. It is the policy of the Company not to hold any loans for investment purposes.

Note_1_Organization_and_Summar5

Note 1 - Organization and Summary of Significant Accounting Policies: Real estate owned (Policies)	3 Months Ended
	Mar. 31, 2015
Policies
Real estate owned	Real estate owned – Real estate owned (“REO”) (acquired through a loan default) is recorded at fair value on a non-recurring basis.  Upon transfer of a loan held for sale to REO, properties are recorded at amounts which are equal to fair value of the properties based on the following inputs: (1) appraisal provided by a certified appraiser, (2) BPO (Broker’s Pricing Opinion) provided by a qualified real estate broker, (3) site inspection by qualified management of the Company, or (4) a combination of all of the above.  Periodically, non-recurring fair value adjustments to REO are recorded to reflect partial write-downs based on the same inputs.  The Company considers any valuation inputs related to REO to be Level 3 inputs.  The individual carrying values of these assets are reviewed for impairment at least annually and any additional impairment charges are expensed to operations.

Note_1_Organization_and_Summar6

Note 1 - Organization and Summary of Significant Accounting Policies: Income tax (Policies)	3 Months Ended
	Mar. 31, 2015
Policies
Income tax	Income tax – Deferred taxes are provided on the liability method whereby deferred tax assets are recognized for deductible temporary differences and deferred tax liabilities are recognized for taxable temporary differences.  Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets, subject to a valuation allowance, are recognized for future benefits of net operating losses being carried forward.  The Company effective tax rate for 2015 is expected to be 0%.

Note_1_Organization_and_Summar7

Note 1 - Organization and Summary of Significant Accounting Policies: Earnings Per Share, Policy (Policies)	3 Months Ended
	Mar. 31, 2015
Policies
Earnings Per Share, Policy	Earnings per share – Basic earnings per common share have been computed on the basis of the weighted-average number of common shares outstanding during the period presented.  Diluted earnings per common share are computed on the basis of the number of shares that are currently outstanding plus the number of shares that would be issued pursuant to outstanding warrants, stock options and common stock issuable on conversion of preferred stock unless such shares are deemed to be anti-dilutive such as when a net loss is present.  The dilutive effect of convertible debt and outstanding securities, in periods of future income, would be as follows as of March 31, 2015 and March 31, 2014:
		March 31,
		2015	2014
	Stock options	261,000	1,261,000
	Convertible preferred stock	4,098,750	4,123,750
	Convertible debt	625,000	625,000
	Total possible dilution	4,984,750	6,009,750

Note_1_Organization_and_Summar8

Note 1 - Organization and Summary of Significant Accounting Policies: Reclassifications (Policies)	3 Months Ended
	Mar. 31, 2015
Policies
Reclassifications	Reclassifications – Certain reclassifications have been made to conform prior periods’ data to the current presentation. These reclassifications have no effect on the results of reported operations or stockholders’ equity.

Note_1_Organization_and_Summar9

Note 1 - Organization and Summary of Significant Accounting Policies: Earnings Per Share, Policy: Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2015
Tables/Schedules
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share
		March 31,
		2015	2014
	Stock options	261,000	1,261,000
	Convertible preferred stock	4,098,750	4,123,750
	Convertible debt	625,000	625,000
	Total possible dilution	4,984,750	6,009,750

Note_2_Loans_Held_For_Sale_Sch

Note 2 - Loans Held For Sale: Schedule of Other Assets (Tables)	3 Months Ended
	Mar. 31, 2015
Tables/Schedules
Schedule of Other Assets
			March 31,		31-Dec-14
			2015
	Residential	$	318,204	$	319,733
	Land		10,337		10,337
	Commercial		282,188		281,330
	Total	$	610,729	$	611,400

Note_2_Loans_Held_For_Sale_Sch1

Note 2 - Loans Held For Sale: Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Tables)	3 Months Ended
	Mar. 31, 2015
Tables/Schedules
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
			March 31,
			2015		2014
	Beginning Balance	$	611,400	$	1,024,027
	New loans		-		150,000
	Principal payments		-1,529		-14,734
	Proceeds from loans paid in full		-		-372,641
	Gain on loans paid in full		-		166,300
	Proceeds from sale of loans		-		-70,291
	Loss on sale of loans		-		-3,616
	Repossession expenses		858-		-846
	Ending Balance	$	610,729	$	878,199

Note_3_Real_Estate_Owned_Real_

Note 3- Real Estate Owned: Real Estate Owned, Disclosure of Detailed Components (Tables)	3 Months Ended
	Mar. 31, 2015
Tables/Schedules
Real Estate Owned, Disclosure of Detailed Components
			March 31,		31-Dec-14
			2015
	Land	$	40,382	$	40,382
	Commercial		4,010		4,010
	Total	$	44,392	$	44,392

Note_3_Real_Estate_Owned_Chang

Note 3- Real Estate Owned: Change in balance sheet carrying values for real estate owned (Tables)	3 Months Ended
	Mar. 31, 2015
Tables/Schedules
Change in balance sheet carrying values for real estate owned
			March 31,
			2015		2014
	Beginning Balance	$	44,392	$	392,885
	Proceeds from sales of REO		-		-11,241
	Gain on sale of REO		-		2,511
	Net change in holding costs		-		907
	Ending Balance	$	44,392	$	385,062

Recovered_Sheet1

Note 1 - Organization and Summary of Significant Accounting Policies (Details)	3 Months Ended
	Mar. 31, 2015
Details
Nature of Operations	Organization: Genesis Financial, Inc. (“the Company” or “GFI”) was incorporated in Washington State on January 24, 2002. The Company is primarily engaged in the business of purchasing and selling real estate receivable loans and periodically providing bridge capital funding. Loans consist of real estate loans and mortgage notes collateralized by primarily first position liens on residential and commercial real estate. The loans collateralized by real estate are typically non-conventional either because they are originated as a result of seller financing, or the underlying property is non-conventional. The Company invests in loans using investor funds, equity funds and funds generated from external borrowings including a line of credit facility from an affiliated stockholder.
Entity Incorporation, State Country Name	Washington
Entity Incorporation, Date of Incorporation	24-Jan-02

Recovered_Sheet2

Note 1 - Organization and Summary of Significant Accounting Policies: Earnings Per Share, Policy: Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Details
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements	261,000	1,261,000
Incremental Common Shares Attributable to Dilutive Effect of Conversion of Preferred Stock	4,098,750	4,123,750
Incremental Common Shares Attributable to Dilutive Effect of Conversion of Debt Securities	625,000	625,000
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	4,984,750	6,009,750

Note_2_Loans_Held_For_Sale_Sch2

Note 2 - Loans Held For Sale: Schedule of Other Assets (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Details
Loans and Leases Receivable, Gross, Other	$318,204	$319,733
Loans Receivable, Gross, Commercial, Financial and Agricultural	10,337	10,337
Loans Receivable, Gross, Commercial and Industrial	282,188	281,330
Disposal Group, Including Discontinued Operation, Loans Receivable, Net	$610,729	$611,400

Note_2_Loans_Held_For_Sale_Sch3

Note 2 - Loans Held For Sale: Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Details
Fair value assets measured on recurring basis level 3, beginning balance	$611,400	$1,024,027
New Loans On Real Estate Promissory Notes Or Other Assets		150,000
Proceeds from Loan and Lease Originations and Principal Collections	-1,529	-14,734
Proceeds from Loans		-372,641
Gain on loan paid in full		166,300
Proceeds from Sales of Assets, Investing Activities		-70,291
Gain (Loss) on Sales of Loans, Net		-3,616
Foreclosed Real Estate Expense		-846
Fair Value, Assets and Liabilities Measured on Recurring Basis, Gain (Loss) Included in Earnings, Total	$610,729	$878,199

Note_2_Loans_Held_For_Sale_Det

Note 2 - Loans Held For Sale (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Details
Loans sold during period gross	$73,907
Loans sold during period net	70,291
Loss on sale of loans	3,616
Gain on loan paid in full		$166,300

Note_3_Real_Estate_Owned_Real_1

Note 3- Real Estate Owned: Real Estate Owned, Disclosure of Detailed Components (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Details
Land real estate owned	$40,382	$40,382
Commercial real estate owned	4,010	4,010
Property Subject to or Available for Operating Lease, Net	$44,392	$44,392

Note_3_Real_Estate_Owned_Chang1

Note 3- Real Estate Owned: Change in balance sheet carrying values for real estate owned (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Details
Real estate gross at carrying value beginning balance	$44,392	$392,885
Proceeds from Sale of Real Estate		-11,241
Gain on sale of real estate owned		2,511
Net change in holding costs		907
SEC Schedule III, Real Estate, Gross, Total	$44,392	$385,062

Note_4_Other_Assets_Details

Note 4 - Other Assets (Details)	3 Months Ended
	Mar. 31, 2015
Details
Equity Method Investments and Joint Ventures Disclosure	Flyback Energy, Inc.: On November 23, 2010, the Company closed the purchase of an equity interest in Flyback Energy, Inc., for $1,200,000. The purchase was for 2,666,667 share of Series “B” Preferred Stock from Flyback Energy, Inc., a closely held Washington corporation payable on an installment basis. On April 25, 2011, the Company purchased 85,274 shares of Series “C” Preferred Stock for $50,000 which is convertible at $.60 per share and bears a 5% dividend rate. The Flyback Series 'B' Preferred shares are convertible into Flyback common shares on a one for one (1:1) basis and the conversion pricing is subject to adjustments for certain diluting issues of common stock, subdivisions or combinations of common stock, reclassifications, exchanges and/or substitutions of stock. The Company is due 421,480 shares of common stock because of the dilution provision. Flyback Energy, Inc. is a privately-held company that has developed a unique and proprietary electronic switch design that offers control over electrical power and magnetic fields. Digi Outdoor Media, Inc.: In 2014, the Company loaned Placer Creek Mining Company (“Placer”) $150,000. The loan bore interest at a rate of 5.0% and the Company had an option to convert any or all of the amount due into a equity private placement of Placer. Placer is a related party to the Company (see note 8) Placer completed the private placement. On February, 24, 2015, the Company subsequently converted the note receivable into 300,000 shares of common stock of Digi Outdoor Media, Inc. (“Digi”), the successor in interest to Placer. The Company determined that the fair value of the shares received on the conversion to be $150,000 based upon the note receivable balance of $150,000 because Digi is not publicly traded and has had no recent cash sale of its common stock. The fair value was determined using Level 2 inputs under the fair value hierarchy. Digi Outdoor Media, Inc. is a startup company in the business of building and leasing outdoor advertising signs.
Marketable Securities	Investments in Available for Sale Securities: Ambient Water Corporation (Formerly AWG International Water Corp.): The Company purchased 109,906 shares of the AWG International Water Corp, a Nevada corporation, (“AWGI”) common stock for $500,000 ($250,000 each in 2010 and 2011). In July 2012, AWGI was acquired by MIP Solutions, Inc. in a share exchange transaction (the 'Acquisition'). In connection with the Acquisition, the Company’s 109,906 shares of AWGI common stock were converted into 7,380,433 shares or 6.25% of AWG International Water Corp (formerly MIP Solutions, Inc.). At March 31, 2015 the quoted market value of AWGI was $0.02 per share or $147,609 resulting in an unrealized loss of $147,609 for the quarter ended March 31, 2015. The investment is measured using Level 1 fair value inputs.
Investment Holdings, Other than Securities	Investments in Real Estate Limited Liability Companies: At the end of 2012, the Company acquired investments in two Washington state real estate limited liability companies. In 2013, the Company contributed its investment in one real estate owned property with a basis of $51,600 to a newly formed limited liability company in exchange for a 12.9% interest in the new company. In 2014, the Company contributed its investment in one real estate owned property with a basis of $47,925 to a newly formed limited liability company in exchange for 31.95% interest in the new company. Investments are accounted for using the equity method. During the quarters ended March 31, 2015 and 2014, the Company recorded an (income) loss of ($48) and $12,155, respectively. Losses generally represent our portion of this real estate company’s loss for the same period.
Operating Leases of Lessor Disclosure	Rental Properties: At the end of 2013, the Company foreclosed on a loan previously held for sale in Lebanon, Oregon through the bankruptcy courts, the property is currently being operated as Duffy’s Bar. The bar was subsequently leased on a three (3) year lease agreement for $1,500 per month. During the quarter ended March 31, 2015, the company recognized $4,500 in rental income. This is a commercial building being depreciated over thirty-nine (39) years. The company recorded depreciation of $536 for the quarter ended March 31, 2015.
Operating Leases of Lessee Disclosure	Real Estate Leasehold Interest: On May 31, 2013, the Company completed the acquisition of a real property leasehold interest in approximately 63 acres located in Dunn County, North Dakota, (the 'Halliday Project'). The leasehold was acquired by assignment of a lease between Mr. Clint L. Lohman (“Lohman”), Lessee and the Lessors. The Halliday Project, as presently developed, consist of fifty (50) developed residential lots and undeveloped land. Mr. Lohman was elected as a director of GFI at the October 22, 2013 annual shareholder meeting. Lohman initially acquired the property in September 2012 and commenced development of fifty (50) RV/residential lots. Lohman invested $353,857 into the Project. The Company loaned Lohman an additional $353,857 which was used for project development. The development is currently approved for a total of 100 lots in the city of Halliday, North Dakota. In 2013, the Company acquired Lohman's interest in the Halliday Project in a share exchange transaction in 2013. GFI issued 589,762 common shares valued at $0.45 per share for a value of $265,393. The Company also cancelled Lohman’s outstanding loan balance of $353,857 at the time of the share exchange. Total consideration for the leasehold interest was $619,250. The Company owns the Halliday Project leasehold interest and intends to complete the development of the additional 50 lots at an estimated cost of $300,000. The Company may place recreational vehicles, mobile homes, or construct cabins on the lots and offer them for rent or lease. The Company recorded amortization of $5,161 and $13,762 for the quarters ended March 31, 2015 and 2014, respectively. At the quarter ended March 31, 2015, the Company had thirteen lots leased and had rental income for the three month ended March 31, 2015 and 2014 of $12,000 and 10,040, respectively. The lease term is fifteen (15) years and commenced on September 15, 2012. The Company has an option to renew the lease for an additional 15 year term. The monthly rent on the lease is Fifty ($50.00) Dollars for each occupied and rented trailer, cabin or lot. The Company is obligated to pay any and all real and personal property taxes, general taxes, special assessments and other charges levied against the property and its improvements. During the lease term, the Company will own title to all of the improvements and personal property. At the expiration of the lease or termination, all improvements and personal property located on the premises will revert to the Lessors.

Note_5_Lines_of_Credit_Details

Note 5 - Lines of Credit (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Details
Long-term Line of Credit	$125,000
Line of Credit Facility, Asset Restrictions	The Riverbank line requires that the CFC line may not be paid down lower than the amount owing to Riverbank at any time during the term of the loan. The line is payable on demand and is personally guaranteed by John R. and Wendy Coghlan, related parties of the Company.
Line of credit, affiliated company	$1,265,000	$1,280,000

Note_6_Notes_Payable_Details

Note 6 - Notes Payable (Details) (USD $)	3 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2014	Dec. 15, 2012
Details
Convertible note payable to officer	$250,000			$250,000	$250,000
Debt Instrument, Convertible, Beneficial Conversion Feature			128,750
Note payable original debt amount		62,699
Note payable, monthly payments	832
Note payable, balance owing	$36,442

Note_7_Series_B_Preferred_Stoc1

Note 7 - Series "B" Preferred Stock (Details)	3 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Details
Convertible Prefered Stock Converted to Other Securities	10,000
Stock Issued During Period, Shares, Conversion of Convertible Securities	25,000
Preferred Stock, Shares Outstanding	1,639,500	1,649,500

Note_8_Relatedparty_Transactio1

Note 8- Related-party Transactions (Details)	3 Months Ended
	Mar. 31, 2015
Details
Description of related parties	Related parties are defined as Officers, Directors, and/or those Shareholders owning or controlling more than 5% of the common stock of GFI, or any entities that are owned or controlled by Officers, Directors, and/or those Shareholders owning or controlling more than 5% of the common stock of GFI.
Related parties and relationships	Coghlan Family Corporation, Coghlan, LLC and West 3773 Fifth, LLC are controlled by John R. Coghlan, a Company director, CFO and majority shareholder. Coghlan Family Corporation is owned 100% by Coghlan, LLC, which is owned by the Coghlan family members. John R. and Wendy Coghlan (husband and wife) collectively own 35.65% of Coghlan, LLC and are co-managers. West 3773 Fifth, LLC is owned 100% by John and Wendy Coghlan (husband and wife). Genesis Financial Corporation is a company which is owned 100% by Michael Kirk, who is a director and officer of Genesis Financial, Inc. Genesis Financial, Inc. provides accounting, office services and supplies, and office space for his services provided to Genesis Financial Corporation. The services are valued at $1,500 per month. Michael Lavigne is an officer and director of Placer Creek Mining Company. Mr. Lavigne is a director of Genesis Financial, Inc.
Related Party Transactions During the Period	John R. Coghlan On June 30, 2014, John R Coghlan personally guaranteed our Riverbank line of credit. On April 30, 2014, John R Coghlan exercised 250,000 common stock options at an option price of $0.20 per share. Coghlan Family Corporation “CFC” There was no activity for the quarter ended March 31, 2015 and year ended December 31, 2014. Coghlan, LLC There was no activity for the quarter ended March 31, 2015 and year ended December 31, 2014. West 3773 Fifth, LLC As of March 31, 2015, the Company continued a month-to-month tenancy with 3773 West Fifth, LLC, a company owned and controlled by John and Wendy Coghlan. The monthly rent is $1,250. Genesis Finance Corporation “GFC” On January 31, 2014, GFC purchased $73,907 interest in five loans held for sale by the Company. The Company recognized a loss of $3,616 for the purchase. Michael Lavigne During the first quarter 2014, the Company loaned Placer Creek Mining Company $150,000. During the first quarter 2015, the Company converted the Placer Creek Mining Company loan of $150,000 to 300,000 shares of Digi Outdoor Media, Inc., the successor to Placer Creek Mining Company.