Consolidated Statement of Changes in Members' Equity (Unaudited)
F-3
Consolidated Statements of Cash Flows (Unaudited)
F-4
Notes to the Consolidated Financial Statements (Unaudited)
F-5
American Realty Partners, LLC Consolidated Balance Sheets (unaudited)
June 30,
December 31,
2015
2014
ASSETS
Investment in real estate:
Land
$
4,714,404
$
3,881,285
Building and improvements
2,374,605
1,410,583
7,089,009
5,291,868
Less: accumulated depreciation
(157,867)
(119,398)
Investment in real estate, net
6,931,142
5,172,470
Cash
130,195
304,371
Accounts receivable
1,340
-
Notes receivable
120,000
120,000
Due from related party
6,221
-
Other assets
61,999
79,344
Total Assets
$
7,250,897
$
5,676,185
LIABILITIES AND MEMBERS' EQUITY
LIABILITIES
Accounts payable and accrued liabilities
$
52,300
$
25,847
Due to related parties
59,743
54,382
Prepaid rent received
10,400
7,450
Notes payable
2,760,422
2,016,144
Total Liabilities
2,882,865
2,103,823
Commitments (Note 12)
MEMBERS' EQUITY
Members' contributions
10,910,511
8,800,585
Accumulated deficit
(6,470,126)
(5,228,223)
Total American Realty Partners, LLC Members' Equity
4,440,385
3,572,362
Non-controlling interest
(72,353)
-
Total Members' Equity
4,368,032
3,572,362
Total Liabilities and Members' Equity
$
7,250,897
$
5,676,185
(The accompanying notes are an integral part of these unaudited consolidated financial statements) F-1
American Realty Partners, LLC Consolidated Statements of Operations (unaudited)
For the
For the
For the
For the
Three Months
Three Months
Six Months
Six Months
Ended
Ended
Ended
Ended
June 30,
June 30,
June 30,
June 30,
2015
2014
2015
2014
Revenue
Rental revenues
$
101,285
$
72,971
$
188,444
$
140,606
Interest income
2,400
6,731
4,802
14,114
Gain on sale of assets
71,293
79,047
71,293
79,047
Other Income
-
-
500
-
Total revenue
174,978
158,749
265,039
233,767
Expenses
Depreciation
21,013
10,262
40,281
49,993
General and administrative
601,715
304,595
1,099,821
628,644
Interest expense
63,098
55,139
113,964
99,024
Acquisition expense
-
-
325,000
-
Total expenses
(685,826)
(369,996)
(1,579,066)
(777,661)
Net loss
(510,848)
(211,247)
(1,314,027)
(543,894)
Less: net loss attributable to non-controlling
interest
57,275
-
72,124
-
Net loss attributable to American Realty
Partners, LLC
$
(453,573)
$
(211,247)
$
(1,241,903)
$
(543,894)
(The accompanying notes are an integral part of these unaudited consolidated financial statements) F-2
American Realty Partners, LLC Statement of Changes in Members' Equity (unaudited)
Total
Members'
Accumulated
Non-controlling
Member's
Contributions
Deficit
Interest
Equity
Balance - December 31, 2014
$
8,800,585
$
(5,228,223)
$
-
$
3,572,362
Issuance of membership units for cash
1,809,502
-
-
1,809,502
Issuance of membership units in exchange for
real estate properties
300,000
-
-
300,000
Forgiveness of related party note payable
424
-
-
424
Non controlling interest at acquisition
-
-
(229)
(229)
Net loss
-
(1,241,903)
(72,124)
(1,314,027)
Balance - June 30, 2015
$
10,910,511
$
(6,470,126)
$
(72,353)
$
4,368,032
(The accompanying notes are an integral part of these unaudited consolidated financial statements) F-3
American Realty Partners, LLC Consolidated Statements of Cash Flows (unaudited)
For the
For the
Six Months
Six Months
Ended
Ended
June 30,
June 30,
2015
2014
Cash Flows from Operating Activities
Net loss
$
(1,314,027)
$
(543,894)
Items not affecting cash:
Depreciation
40,281
49,993
Gain on sale of assets
(71,293)
(79,047)
Changes in operating assets and liabilities:
Prepaid expenses
17,345
(26,852)
Accounts receivable
(1,340)
-
Due from related party
(6,221)
-
Accounts payable
20,547
-
Accrued liabilities
5,541
3,056
Prepaid rent
2,950
(2,148)
Due to related parties
5,785
(3,538)
Net Cash Used In Operating Activities
(1,300,432)
(602,430)
Cash Flows from Investing Activities
Purchase of real estate properties and improvements
(898,660)
(98,579)
Proceeds from sale of real estate properties
111,000
198,798
Investment in promissory notes receivable
-
(120,000)
Cash acquired on acquisition
136
-
Net Cash Used in Investing Activities
(787,524)
(19,781)
Cash Flows from Financing Activities
Proceeds from the sale of membership units
1,809,502
1,110,000
Proceeds from notes payable
120,000
-
Repayment of notes payable
(15,722)
(650,000)
Net Cash Provided by Financing Activities
1,913,780
460,000
Change in Cash
(174,176)
(162,211)
Cash - Beginning of Period
304,371
182,913
Cash - End of Period
$
130,195
$
20,702
Supplemental disclosures of cash flow information:
Interest paid
$
113,964
$
99,024
Income taxes paid
$
-
$
-
Non-cash investing and financing activities:
Issuance of membership units in exchange for real
estate properties
$
300,000
$
120,000
Notes payable issued with acquisition of real properties
$
990,000
$
956,218
Notes payable settled from sale of real properties
$
350,000
$
291,900
Forgiveness of related party note payable
$
424
$
-
Note converted to membership units
$
-
$
30,000
(The accompanying notes are an integral part of these unaudited consolidated financial statements) F-4
1. Nature of Operations
American Realty Partners, LLC ("we", "our", the "Company") is a limited liability company formed in the State of Arizona on September 16, 2013. The Company's principal business is the acquisition and management of single-family residential properties (SFRs) in select communities throughout the United States.
On October 18, 2013, Equity Pacesetter, LLC ("EPS"), Equity Pacesetter II, LLC ("EPS II"), and Equity Pacesetter III, LLC ("EPS III"), three Arizona limited liability companies (together as "EPS entities"), merged with and into the Company, with the Company as the surviving company taking all the rights and privileges of the EPS entities. Each member's membership interests in the EPS entities were converted into membership interest in the Company based on the percentage interest of each member in the EPS entities and the percentage contribution of each of the EPS entities to the Company. The merger was accounted for as a transaction among entities under common control. The assets and liabilities transferred to the Company are recorded at their carrying amounts at the date of transfer. The Company recorded an adjustment of $494,924 in Member's Equity for the merger.
On February 4, 2015, the Company entered into a Share Purchase Agreement with American Housing Income Trust, Inc. ("AHIT"), a Maryland corporation, and AHIT's shareholders, pursuant to which the Company acquired from the selling shareholders of AHIT 58,809,678 shares of common stock (representing 50.67% of the common shares outstanding of AHIT), and 20,000 shares of Series A preferred stock (representing 100% of the preferred shares outstanding of AHIT).
2. Summary of Significant Accounting Policies
a) Basis of Presentation and Principles of Consolidation
These interim unaudited consolidated financial statements have been prepared on the same basis as the annual financial statements and in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the Company's financial position, results of operations and cash flows for the period shown. The results of operations for such periods are not necessarily indicative of the results expected for a full year or for any future period.
These consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries, ARP Pledgor, LLC and ARP Borrower, LLC and its 50.68% owned subsidiary, AHIT. All significant intercompany transaction and balances have been eliminated. The Company's fiscal year-end is December 31.
b) Use of Estimates
The preparation of financial statements in conformity with US generally accepted accounting principles in the United States 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 revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to the useful life and recoverability of long-lived assets, and income taxes. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company's estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected.
c) Fair Value of Financial Instruments
The carrying amounts reported in the consolidated balance sheets for accounts receivable, notes receivable, accounts payable and accrued liabilities, amounts due to/from related parties and notes payable are reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization and if, applicable, the stated rate of interest is equivalent to rates currently available.
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value maximize the use of observable inputs and minimize the use of unobservable inputs. The Company utilizes a three-level valuation hierarchy for disclosures of fair value measurements, defined as follows:
Level 1 Financial assets and liabilities for which values are based on unadjusted quoted prices for identical assets or liabilities in an active market that management has the ability to access.
F-6
Level 2 Financial assets and liabilities for which values are based on quoted prices in markets that are not active or model inputs that are observable either directly or indirectly for substantially the full term of the asset or liability (commodity derivatives and interest rate swaps).
Level 3 Financial assets and liabilities for which values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs reflect management's own assumptions about the assumptions a market participant would use in pricing the asset or liability.
The Company does not have any financial instruments that are required to be measured and recorded at fair value on a recurring basis.
d) Recent Accounting Pronouncements
The Company has implemented all new accounting pronouncements that are in effect and that may impact its consolidated financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.
3. Going Concern
These interim consolidated financial statements have been prepared on a going concern basis, which implies that the Company will continue to realize its assets and discharge its liabilities in the normal course of business. The Company has never paid any dividends and is unlikely to pay dividends in the immediate or foreseeable future. The continuation of the Company as a going concern is dependent upon the continued financial support from its stockholders, the ability of the Company to obtain necessary equity financing to continue operations, and the attainment of profitable operations. During the six months ended June 30, 2015, the Company incurred a net loss of $1,314,027, and as at June 30, 2015, the Company has accumulated losses of $6,470,126 since inception. These factors raise substantial doubt regarding the Company's ability to continue as a going concern. These interim consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.
4. Share Purchase Agreement
On February 4, 2015, the Company entered into a Share Purchase Agreement with American Housing Income Trust, Inc. ("AHIT"), a Maryland Corporation, pursuant to which the Company acquired 58,809,678 shares of common stock, representing 50.67% of the total issued and outstanding shares of common stock of AHIT, and 20,000 shares of Series A preferred stock of AHIT, representing 100% of the total issued and outstanding shares of Series A preferred stock of AHIT in consideration for $325,000. The agreement closed on February 13, 2015. The Company recognized the $325,000 paid to the selling shareholders as acquisition expense as the amount is for the reverse merger that closed on July 6, 2015. Refer to Note 5.
5. Reverse Merger
On May 15, 2015, the Company entered into a Stock Exchange and Restructuring Agreement ("Stock Exchange Agreement") with AHIT. The transaction closed on July 6, 2015 and, pursuant to the agreement, AHIT issued 5,000,000 shares of common stock in exchange for all the membership units in the Company on a pro rata basis. The Company issued 100 units to AHIT. As a result of this transaction, the Company became a subsidiary of AHIT. The transaction is accounted for as a reverse acquisition and the Company is considered the accounting acquirer for financial reporting purposes. Refer to Note 13.
6. Investment in Real Estate
June 30,
December 31,
2015
2014
(unaudited)
Cost of real estate properties
$
7,089,009
$
5,291,868
Accumulated depreciation
(157,867)
(119,398)
Balance at the end of the period
$
6,931,142
$
5,172,470
During the six months period ended June 30, 2015, the Company recorded depreciation expense of $40,281 (2014 - $49,993).
7. Notes Receivable
F-7
On January 13, 2014, the Company invested in a note receivable for $120,000 which bears interest at 8% per annum and matures on January 9, 2017. The note receivable is secured by a deed of trust on the real estate purchased with the loan. During the six months ended June 30, 2015, the Company recognized $4,800 (2014 - $4,000) of interest income from the note receivable.
8. Related party transactions
a) The Company has been advised and managed by Performance Realty Management, LLC ("PRM"), an Arizona limited liability company (the "Manager"). At the formation of the Company, the Company agreed to pay the Manager of the Company a quarterly management fees equal to the greater of: (a) $120,000 on an annual basis, or (b) 1% of the total assets of the Company in consideration for the management services to be rendered to or on behalf of the Company by the Manager. During the six months ended June 30, 2015, the Company recorded management fees of $60,000 (2014 - $60,000). As at June 30, 2015, the Company is indebted to the Manager of the Company for $44,743 (December 31, 2014 - $54,382), which represents management fees owed and other general and administrative expenses paid on behalf of the Company.
b) On January 16, 2015, the Manager of the Company entered into a promissory note agreement on behalf of the Company for $150,000. The loan bore interest at 16% per annum and was payable on July 16, 2015. The loan was collateralized by a deed of trust on a real estate property owned by the Company. The proceeds from the note was used to purchase another real estate property. On May 12, 2015, the Company repaid the $150,000 note.
c) On February 17, 2015, a former majority shareholder of AHIT advanced $485 to AHIT. During the six months ended June 30, 2015, AHIT repaid $61 and the remaining balance of $424 was forgiven by the shareholder and the amount was recorded in members' equity.
d) On May 15, 2015, AHIT entered into an Advisory Board Consulting and Compensation Agreement with a director of AHIT pursuant to which AHIT agreed to issue 1,000,000 post split shares of common stock to the director. In addition, AHIT agreed to pay the director an annual fee equal to $120,000 or 1% of AHIT's assets as reported on its year-end balance sheet, whichever is greater. AHIT will also issue an aggregate of 3,000,000 post split shares of common stock of AHIT on the first, second and third anniversary. During the six months ended June 30, 2014, AHIT recorded management fees of $15,000 (2014 - $nil). As at June 30, 2015, AHIT is indebted to the director of AHIT for $15,000 which represents management fees owed. The 1,000,000 post split shares of AHIT were issued on July 6, 2015. Refer to Note 13(b).
e) On May 15, 2015, AHIT entered into a Director Agreement with a director of AHIT pursuant to which AHIT agreed to issue 25,000 post split shares of common stock to the director. In addition, the Company agreed to pay the director from time to time for the services provided and may compensate the director with the issuance of shares of common stock of the Company During the six months ended June 30, 2015, the director did not provide any services to AHIT and AHIT recorded $nil in directors' fees. The 25,000 post split shares of AHIT were issued on July 6, 2015. Refer to Note 13(c).
f) On May 15, 2015, AHIT entered into an executive agreement with its former Chief Financial Officer ("former CFO") for a term of one year. The former CFO will work as a part-time consultant initially and in consideration of the part-time services to be rendered by the former CFO, AHIT agreed to issue 25,000 post split shares of common stock of AHIT. When the former CFO becomes a full time employee, AHIT will pay an annual salary of $24,000 and will issue $24,000 worth of common stock of AHIT on the first anniversary of the date on which the former CFO becomes a full time employee. On June 24, 2015, the former CFO resigned and the executive agreement was terminated.
g) On May 15, 2015, AHIT entered into an executive agreement with its former Chief Executive Officer ("former CEO") for a term of one year. The former CEO will work as a part-time consultant initially and in consideration of the part-time services to be rendered by the CEO, AHIT agreed to pay a signing bonus of $25,000 (paid) and to issue 25,000 post split shares of common stock of AHIT. In addition, AHIT agrees to pay the former CEO an annual salary of $25,000 retroactively beginning March 2, 2015. When AHIT achieves certain milestones, AHIT agreed to increase the former CEO's annual salary and issue additional shares of common stock of AHIT. When the former CEO becomes a full time employee, AHIT will continue to pay all compensation earned while the former CEO is working as a part-time consultant and will re-negotiate the compensation. AHIT will also issue an additional 25,000 post split shares of common stock of AHIT on the first anniversary of the date on which the former CEO becomes a full time employee. On June 24, 2015, the former CEO resigned and the executive agreement was terminated.
F-8
9. Notes payable
June 30,
December 31,
2015
2014
$
$
(Unaudited)
Mortgages payable on February 20, 2034, bearing interest at a variable rate, collateralized by a deed of trust on the real estate properties purchased with the loan
208,245
213,100
Promissory note payable on August 1, 2015, bearing interest at 18% per annum initially and at 12% per annum after five months, collateralized by a deed of trust on the real estate property purchased with the loan
130,000
130,000
Promissory note payable on November 1, 2019, bearing interest at 5.371% per annum, collateralized by the real estate properties titled to ARP Borrower, LLC and 100% equity ownership in ARP Borrower, LLC. The note is also secured by a guaranty of the Manager of the Company.
1,662,177
1,673,044
Promissory note payable on January 22, 2016, bearing interest at 18% per annum initially and at 12% per annum after 5 months, collateralized by a deed of trust on the real estate property purchased with the loan
250,000
-
Promissory note payable on March 19, 2016, bearing interest at 18% per annum initially and at 12% per annum after 5 months , collateralized by a deed of trust on the real estate property purchased with the loan
175,000
-
Promissory note payable on February 19, 2016, bearing interest at 18% per annum initially and at 12% per annum after 5 months, collateralized by a deed of trust on the real estate property purchased with the loan
155,000
-
Promissory note payable on November 27, 2015, bearing interest at 16% per annum, collateralized by a deed of trust on the real estate property purchased with the loan
180,000
-
2,760,422
2,016,144
The following table schedules the principal payments on the notes payable for the next five years and thereafter as of March 31, 2015:
Year
Amount
2015
$
325,157
2016
611,423
2017
33,217
2018
34,847
2019
1,587,645
thereafter
168,133
Total
$
2,760,422
10. Members' Equity
a) During the six months ended June 30, 2015, the Company authorized the sale of additional membership units at $10,000 per unit and received total proceeds of $1,809,502.
b) During the six months ended June 30, 2015, the Company issued membership units in exchange for real estate properties with a fair value of $300,000.
F-9
11. Single Family Residence Acquisitions
As of June 30, 2015, the Company had purchased 35 single family homes. The estimated useful life of the buildings and improvements related to these assets is 27 years. The following table sets forth the metropolitan statistical area, metropolitan division, number of homes, aggregate net investment, and average investment for each home acquired.
Average
Number of
Aggregate
Investment per
MSA / Metro Division
Homes
Investment
Home
Arizona
31
$
6,510,122
$
210,004
Nevada
1
211,201
211,201
Texas
3
365,686
121,895
Total and Weighted Average
35
$
7,087,009
$
202,486
The Company computes depreciation using the straight-line method over the estimated useful lives of 27 years for building cost. The Company makes this determination based on subjective assessments as to the useful lives of the Company's properties for purposes of determining the amount of depreciation to record on an annual basis with respect to our investments in single family real estate.
12. Commitments and Contingencies
On May 15, 2015, the Company entered into Parent-Subsidiary and Operations Agreement ("Subsidiary Agreement) with AHIT and Performance Realty Management, LLC ("PRM"). Pursuant to the Subsidiary Agreement, AHIT agreed to be bound by the Company's Operating Agreement dated November 1, 2013. The Subsidiary Agreement was amended on June 29, 2015 to provide for the issuance of 1,000,000 shares of AHIT as consideration for services to be rendered by PRM upon written notice to the Company.
On June 25, 2015, ARP Borrower, LLC ("Borrower"), and ARP Pledgor, LLC ("Pledgor"), two wholly owned subsidiaries of the Company, entered into an agreement with Towd Point Master Funding Trust 2015-CPLA ("Towd") whereby Towd approved the reverse acquisition and restructuring of the Company, as set forth in the Stock Exchange Agreement and Subsidiary Agreement. Towd is the new holder of the $1,675,000 loan entered into by and among Borrower, Pledgor and FirstKey Lending, LLC ("FirstKey") on October 17, 2014. The loan was assigned to Towd by FirstKey on June 25, 2015 and AHIT is the new guarantor of the loan.
Lease Agreements
The Company rents the properties under non-cancellable lease agreements with a term of one year. Future minimum rental revenues under leases existing on our properties at June 30, 2015 through the end of their term, are as follows:
Fiscal Year 2015
$
153,710
Fiscal Year 2016
13,400
Total
$
167,110
13. Subsequent Events
a) On July 6, 2015, the Company closed the Stock Exchange Agreement as described in Note 5. Pursuant to the Stock Exchange Agreement , AHIT issued 5,000,000 shares of common stock in exchange for all the membership units in the Company on a pro rata basis. The Company issued 100 units to AHIT. As a result of the transaction, the Company became a subsidiary of AHIT.
b) On July 6, 2015, AHIT issued 1,000,000 shares of common stock under the Advisory Board Consulting and Compensation Agreement as described in Note 8(c).
c) On July 6, 2015, AHIT issued 25,000 shares of common stock under the Director Agreement as described in Note 8(d).
d) On August 5, 2015, AHIT acquired nine single family residences located in Tucson, Arizona, from Valfre Holdings, LLC, an unrelated third party.
The Company has evaluated subsequent events through August 14, 2015, which is the date the financial statements were issued, and concluded that there were no other events or transactions that needed to be disclosed.
F-10
American Realty Partners, LLC March 31, 2015 and December 31, 2014 and 2013
Index
Report of Independent Registered Public Accounting Firm
F-11
Consolidated Balance Sheets
F-12
Consolidated Statements of Operations
F-13
Consolidated Statements of Changes in Members' Equity
F-14
Consolidated Statements of Cash Flows
F-15
Notes to the Consolidated Financial Statements
F-16
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Members of American Realty Partners, LLC Phoenix, AZ
We have audited the accompanying consolidated balance sheets of American Realty Partners, LLC and its subsidiaries (collectively the "Company") as of December 31, 2014 and 2013 and the related consolidated statements of operations, changes in members' equity and cash flows for the years then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform an audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of American Realty Partners, LLC and its subsidiaries as of December 31, 2014 and 2013, and the results of their operations and their cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.
The accompanying financial statements have been prepared assuming the Company will continue as a going concern. As discussed in Note 3 to the consolidated financial statements, the Company has suffered recurring losses from operations and incurred negative cash flows from operations. These raise substantial doubt about the Company's ability to continue as a going concern. Management's plans in regard to these matters are also described in Note 3. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.
/s/ MaloneBailey, LLP www.malonebailey.com Houston, Texas July 6, 2015
Page F-17
American Realty Partners, LLC Consolidated Balance Sheets
March 31,
2015
December 31,
2014
December 31,
2013
(unaudited)
ASSETS
Investment in real estate:
Land
$ 4,500,484
$ 3,881,285
$ 2,886,778
Building and improvements
2,124,117
1,410,583
921,664
6,624,601
5,291,868
3,808,442
Less: accumulated depreciation
(138,666)
(119,398)
(57,075)
Investment in real estate, net
6,485,935
5,172,470
3,751,367
Cash
240,330
304,371
182,913
Accounts receivable
3,200
-
-
Notes receivable
120,000
120,000
250,750
Due from related party
8,321
-
-
Other assets
156,927
79,344
-
Total Assets
$ 7,014,713
$ 5,676,185
$ 4,185,030
LIABILITIES AND MEMBERS' EQUITY
LIABILITIES
Accounts payable and accrued liabilities
$ 51,902
$ 25,847
$ 10,772
Due to related party
37,106
54,382
50,850
Prepaid rent received
3,500
7,450
5,973
Notes payable
2,936,325
2,016,144
1,285,000
Total Liabilities
3,028,833
2,103,823
1,352,595
Commitments (Note 11)
MEMBERS' EQUITY
Members' contributions
10,017,511
8,800,585
6,579,556
Accumulated deficit
(6,016,553)
(5,228,223)
(3,747,121)
Total American Realty Partners, LLC Members' Equity
4,000,958
3,572,362
2,832,435
Non-controlling interest
(15,078)
-
-
Total Members' Equity
3,985,880
3,572,362
2,832,435
Total Liabilities and Total Liabilities and Members' Members'
$ 7,014,713
$ 5,676,185
$ 4,185,030
(The accompanying notes are an integral part of these consolidated financial statements)
Page F-18
American Realty Partners, LLC Consolidated Statements of Operations
For the
For the
Three Months
Three Months
For the
For the
Ended
Ended
Year Ended
Year Ended
March 31,
March 31,
December 31,
December 31,
2015
2014
2014
2013
(unaudited)
(unaudited)
Revenue
Rental revenues
$ 87,159
$ 67,635
$ 268,620
$ 253,962
Interest income
2,402
7,383
22,338
10,636
Gain on sale of assets
-
-
38,244
297,904
Other income
500
-
-
17,210
Total revenue
90,061
75,018
329,202
579,712
Expenses
Depreciation
19,268
39,731
74,670
48,680
General and administrative
498,106
324,049
1,533,869
783,805
Interest expense
50,866
43,885
201,765
268,301
Acquisition expense
325,000
-
-
-
Total expenses
(893,240)
(407,665)
(1,810,304)
(1,100,786)
Net loss
(803,179)
(332,647)
(1,481,102)
(521,074)
Less: net loss attributable to non-controlling interest
14,849
-
-
-
Net loss attributable to American Realty Partners, LLC
$ (788,330)
$ (332,647)
$ (1,481,102)
$ (521,074)
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