Corix Bioscience (CXBS) 10-K 30 Mar 16 2015 FY Annual report Financial data

Document and Entity Information

Document and Entity Information	12 Months Ended
	Dec. 31, 2015USD ($)shares
Document And Entity Information
Entity Registrant Name	American Housing Income Trust, Inc.
Entity Central Index Key	1,433,821
Document Type	10-K
Document Period End Date	Dec. 31, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float | $	$ 0
Entity Common Stock, Shares Outstanding | shares	7,566,815
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,015

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Investment in real estate:
Land	$ 5,539,877	$ 3,881,285
Building and improvements	3,680,502	1,410,583
Real estate investment, gross	9,220,379	5,291,868
Less: accumulated depreciation	(223,450)	(119,398)
Investment in real estate, net	8,996,929	5,172,470
Cash	199,570	304,371
Notes receivable	0	120,000
Other assets	221,033	79,344
Total Assets	9,417,532	5,676,185
LIABILITIES
Accounts payable and accrued liabilities	88,210	25,847
Due to related parties	14,895	54,382
Prepaid rent received	39,598	7,450
Notes payable	4,271,665	2,016,144
Total Liabilities	4,414,368	2,103,823
SHAREHOLDERS' EQUITY
Preferred Stock, 9,980,000 shares authorized, $0.001 par value; no shares issued and outstanding as of December 31, 2015 (December 31, 2014 - no shares)	0	0
Preferred Stock - Series A, 20,000 shares authorized, $0.001 par value; no shares issued and outstanding as of December 31, 2015 (December 31, 2014 - no shares)	0	0
Common stock, 500,000,000 shares authorized, par value $0.01; 7,566,815 shares outstanding as of December 31, 2015 (December 31, 2014 - 3,797,305 shares)	75,668	37,973
Additional paid-in capital	12,390,239	8,762,612
Accumulated deficit	(7,994,647)	(5,228,223)
Total American Housing Income Trust, Inc.'s Shareholders' Equity	4,471,260	3,572,362
Non-controlling interest	531,904	0
Total Shareholders' Equity	5,003,164	3,572,362
Total Liabilities and Shareholders' Equity	$ 9,417,532	$ 5,676,185

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Preferred Stock, 9,980,000 shares authorized	9,980,000	9,980,000
Preferred Stock, $0.001 par value	$ .001	$ .001
Preferred Stock, no shares issued and outstanding as of December 31, 2015 (December 31, 2014 - no shares)	$ 0	$ 0
Preferred Stock - Series A, 20,000 shares authorized	20,000	20,000
Preferred Stock - Series A, $0.001 par value	$ .001	$ .001
Preferred Stock - Series A, no shares issued and outstanding (December 31, 2014 - no shares)	$ 0	$ 0
Common Stock, 500,000,000 shares authorized	500,000,000	500,000,000
Common Stock, par value $0.01	$ .01	$ .01
Common Stock, 7,566,815 shares outstanding as of December 31, 2015 (December 31, 2014 - 3,797,305 shares)	$ 75,668	$ 37,973

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Revenue
Rental revenues	$ 465,765	$ 268,620
Interest income	9,364	22,338
Other Income	7,297	0
Total revenue	482,426	290,958
Expenses
Depreciation	105,863	74,670
General and administrative	2,623,592	1,533,869
Interest expense	265,688	201,765
Acquisition expense	325,000	0
Total expenses	(3,320,143)	(1,810,304)
Net loss before gain on sale of properties	(2,837,717)	(1,519,346)
Gain on sale of properties	71,293	38,244
Net Loss	(2,766,424)	(1,481,102)
Net loss attributable to non-controlling interest	0	0
Net loss attributable to common stockholders	$ (2,766,424)	$ (1,481,102)
Basic and diluted loss per share:
Net loss per share attributable to common stockholders	$ (0.48)	$ (0.49)
Weighted average shares outstanding - basic and diluted	5,713,637	3,047,352

Consolidated Statement of Stock

Consolidated Statement of Stockholders' Deficit - USD ($)	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Noncontrolling Interest	Total
Balance, Beginning (Shares) at Dec. 31, 2013	2,531,026	0	0	0	0
Balance, Beginning (Value) at Dec. 31, 2013	$ 25,310	$ 6,554,246	$ (3,747,121)	$ 0	$ 2,832,435
Issuance of shares for cash (Shares)	1,140,850	0	0	0	0
Issuance of shares for cash (Value)	$ 11,409	$ 1,989,620	$ 0	$ 0	$ 2,001,029
Issuance of shares in exchange for real estate properties (Shares)	108,325	0	0	0	0
Issuance of shares in exchange for real estate properties (Value)	$ 1,083	$ 188,917	$ 0	$ 0	$ 190,000
Issuance of shares pursuant to the conversion of notes payable (Shares)	17,104	0	0	0	0
Issuance of shares pursuant to the conversion of notes payable (Value)	$ 171	$ 29,829	$ 0	$ 0	$ 30,000
Net loss	$ 0	$ 0	$ (1,481,102)	$ 0	$ (1,481,102)
Balance, Ending (Shares) at Dec. 31, 2014	3,797,305	0	0	0	0
Balance, Ending (Value) at Dec. 31, 2014	$ 37,973	$ 8,762,612	$ (5,228,223)	$ 0	$ 3,572,362
Balance, Beginning (Shares) at Dec. 31, 2014	3,797,305	0	0	0	0
Balance, Beginning (Value) at Dec. 31, 2014	$ 37,973	$ 8,762,612	$ (5,228,223)	$ 0	$ 3,572,362
Reverse merger adjustment (Shares)	116,394	0	0	0	0
Reverse merger adjustment (Value)	$ 1,164	$ (173,347)	$ 0	$ 0	$ (172,183)
Issuance of shares for cash (Shares)	1,450,966	0	0	0	0
Issuance of shares for cash (Value)	$ 14,510	$ 3,045,995	$ 0	$ 0	$ 3,060,505
Issuance of shares in exchange for real estate properties (Shares)	171,040	0	0	0	0
Issuance of shares in exchange for real estate properties (Value)	$ 1,710	$ 298,290	$ 0	$ 0	$ 300,000
Issuance of limited partnership units of AHIT-Valfre, LP in exchange for real estate properties	$ 0	$ 0	$ 0	$ 531,904	$ 531,904
Issuance of shares for services (Shares)	2,049,000	0	0	0	0
Issuance of shares for services (Value)	$ 20,490	$ 456,510	$ 0	$ 0	$ 477,000
Common Stock issued for beneficial round up (Shares)	110	0	0	0	0
Common Stock issued for beneficial round up (Value)	$ 1	$ (1)	$ 0	$ 0	$ 0
Cancellation of common stock (Shares)	(18,000)	0	0	0	0
Cancellation of common stock (Value)	$ (180)	$ 180	$ 0	$ 0	$ 180
Net loss	$ 0	$ 0	$ (2,766,424)	$ 0	$ (2,766,424)
Balance, Ending (Shares) at Dec. 31, 2015	7,566,815	0	0	0	0
Balance, Ending (Value) at Dec. 31, 2015	$ 75,668	$ 12,390,239	$ (7,994,647)	$ 531,904	$ 5,003,164

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Cash Flows from Operating Activities
Net loss	$ (2,766,424)	$ (1,481,102)
Items not affecting cash:
Depreciation	105,863	74,670
Gain on sale of assets	(71,293)	(38,244)
Stock-based compensation	477,000	0
Changes in operating assets and liabilities:
Prepaid expenses	(134,242)	(77,844)
Accounts payable	6,653	0
Accrued liabilities	34,285	15,075
Prepaid rent	32,148	1,477
Due to related parties	(190,874)	3,532
Net Cash Used In Operating Activities	(2,506,884)	(1,502,436)
Cash Flows from Investing Activities
Purchase of real estate properties and improvements	(1,008,576)	(346,634)
Proceeds from sale of real estate properties	70,281	546,923
Investment in promissory notes receivable	0	(120,000)
Proceeds from collection of promissory note receivable	120,000	250,750
Net Cash (Used in) Provided by Investing Activities	(818,295)	331,039
Cash Flows from Financing Activities
Proceeds from the sale of common stock	3,060,505	2,001,029
Proceeds from notes payable	1,088,000	0
Repayment of notes payable	(928,127)	(708,174)
Net Cash Provided by Financing Activities	3,220,378	1,292,855
Change in Cash	(104,801)	121,458
Cash - Beginning of Year	304,371	182,913
Cash - End of Year	199,570	304,371
Supplemental disclosures of cash flow information:
Interest paid	265,688	201,765
Income taxes paid	0	0
Issuance of shares in exchange for real estate properties	300,000	190,000
Notes payable issued with acquisition of real properties	2,445,648	1,761,218
Notes payable settled from sale of real properties	350,000	291,900
Note converted to common shares	0	30,000
Issuance of limited partnership units of AHIT-Valfre in exchange for real estate properties	531,904
Reverse merger adjustment	172,183	$ 0
Cancellation of Common Stock	$ 180

Nature of Operations

Nature of Operations	12 Months Ended
	Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Operations	1. Nature of Operations American Housing Income Trust, Inc. (“we”, “our”, the “Company”) was incorporated on December 17, 2007 under the laws of the State of Nevada. On February 13, 2015, following the acquisition of the majority and controlling shares of the Company by American Realty Partners, LLC (“ARP”), a change of control of the Company took place. On May 11, 2015, the Company converted into a Maryland corporation and changed its name to American Housing Income Trust, Inc. On May 15, 2015, the Company entered into a Stock Exchange and Restructuring Agreement (“Stock Exchange Agreement”) with ARP. The transaction closed on July 6, 2015 and, pursuant to the agreement, the Company issued 5,000,000 shares of common stock in exchange for all the membership units in ARP on a pro rata basis. The Company was issued 100 units of ARP. The transaction is accounted for as a reverse acquisition and ARP is considered the accounting acquirer for financial reporting purposes. The Company recognized amounts paid to the selling shareholders amounting to $325,000 as acquisition expenses in the consolidated statements of operations. On August 3, 2015, the Company, and Valfre Holdings, LLC, an Arizona limited liability company, and James A. Valfre and Pamela J. Valfre, f/k/a Pruitt (collectively, "Valfre") closed on the Company's acquisition of nine single family residences in Arizona through an umbrella limited liability partnership organized in Maryland called "AHIT Valfre, LLP" (“AHIT Valfre”). Pursuant to the AHIT Valfre Agreements, in consideration for the conveyance of the nine single family residences, which were acquired by AHIT Valfre “subject to” existing mortgages, AHIT Valfre issued limited partnership interests to Valfre. The Company is in the business of acquiring and operating residential properties. As of the date of this filing, the Company holds title to 46 residential properties.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies a) Basis of Presentation and Principles of Consolidation These consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“US”). These consolidated financial statements include the accounts of the Company, its wholly-owned subsidiary ARP, and its subsidiary special purpose entities, ARP Pledgor, LLC, ARP Borrower, LLC, ARP Pledgor II, LLC, APR Borrower II, LLC and AHIT-Valfre, LLP. All significant intercompany transaction and balances have been eliminated. On June 24, 2015, the Company’s fiscal year-end is changed from January 31 to 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) Cash and Cash Equivalents The Company considers all highly liquid instruments with maturity of three months or less at the time of issuance to be cash equivalents. d) Income Taxes The Company accounts for income taxes using the asset and liability method in accordance with ASC 740, “ Income Taxes The Company plans on electing to be taxed as a Real Estate Investment Trust (“REIT”) for federal income tax purposes beginning in 2016. REITs are generally not subject to federal income taxes if the Company can meet many specific requirements. If the Company fails to qualify as a REIT in any taxable year, the Company will be subject to federal and state income tax (including any applicable alternative minimum tax) on our taxable income at regular corporate tax rates, and the Company may be ineligible to qualify as a REIT for subsequent tax years. Even if the Company qualifies as a REIT, the Company may be subject to certain state or local income taxes, and if the Company creates a Taxable REIT Subsidiary (“TRS”), the TRS will be subject to federal, state and local taxes on its income at regular corporate rates. The Company recognizes the tax effects of uncertain tax positions only if the position is more likely than not to be sustained upon audit, based on the technical merits of the position. The Company has not identified any material uncertain tax positions and recognizes interest and penalties in income tax expense, if applicable. e) Investment in Real Estate The Company allocates the purchase price to tangible assets of an acquired property (which includes land and building) based on the estimated fair values of those tangible assets. Fair value for land and building is based on the purchase price for these properties. Property/SFRs acquired not subject to an existing lease are accounted for as an asset acquisition, with the property recorded at the purchase price, including acquisition costs. We incur costs to prepare our acquired properties to be rented. These costs are capitalized and allocated to building costs. Costs related to the restoration or improvement of our properties that improve and extend their useful lives are capitalized and depreciated over their estimated useful lives. Expenditures for ordinary repairs and maintenance are expensed as incurred. Depreciation is computed on a straight-line basis over the useful lives of the properties (building and improvements – 27 years). f) Accounts Receivable Accounts receivable represent the amount of rent receivables and interest receivable from promissory notes receivable invested by the Company, net of any allowance for amounts deemed uncollectible. The Company assesses these balances for collectability on a quarterly basis. g) Impairment of Long-lived Assets The Company continually evaluates the recoverability of the carrying value of its real estate assets using the methodology prescribed in ASC Topic 360, Property, Plant and Equipment h) Fair Value of Financial Instruments The carrying amounts reported in the consolidated balance sheets for 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 Level 2 Level F The Company does not have any financial instruments that are required to be measured and recorded at fair value on a recurring basis. i) Non-controlling Interest Limited partnership units in AHIT-Valfre that are not owned by the Company are presented as non-controlling interest in the equity section of our consolidated balance sheets. Our limited partners do not have the right to share in the net income or losses of AHIT-Valfre but have the right to convert all or part of their partnership units to common shares of the Company on a one-for-one basis following the one-year anniversary of issuance. At the time of redemption, we have the right to determine whether to redeem the non-controlling limited partnership units of AHIT-Valfre for cash, based upon the fair value of an equivalent number of shares of our common stock at the time of redemption. Consequently, the limited partnership units are classified as permanent equity. As of December 31, 2015, there were 300,026 limited partnership units outstanding in AHIT-Valfre. These units were issued in connection with our acquisition of certain real estate properties. (See Note 6). j) Revenue Recognition Rental income for property leases is recorded when due from residents and is recognized monthly as it is earned. The Company leases single-family residences that the Company owns and manages directly to tenants who occupy the properties under operating leases, generally, with terms of one year. The Company performs credit investigations on prospective tenants and obtains security deposits. Sales and the associated gains or losses of real estate assets are recognized in accordance with the provisions of ASC Topic 360-20, Property, Plant and Equipment – Real Estate Sale k) Stock-based Compensation The Company records stock-based compensation in accordance with ASC 718, Compensation – Stock Based Compensation Equity Based Payments to Non-Employees l) 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.

Going Concern

Going Concern	12 Months Ended
	Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Going Concern	3. Going Concern These 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 year ended December 31, 2015, the Company incurred a net loss of $ s at December 31, 2015, the Company has accumulated losses of $7,994,647 since inception. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern. These 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. The Company has been successful in raising cash through equity offerings in the past as described in Note 11. The Company has financing efforts in place to continue to raise cash through equity offerings. Management has developed a plan to continue operations. This plan includes obtaining equity financing and reducing expenses. During the year ended December 31, 2015, the Company received $3,060,505 net proceeds from equity financings. Although the Company has successfully completed financings, the Company cannot assure that the plans to address these matters in the future will be successful.

Share Purchase Agreement

Share Purchase Agreement	12 Months Ended
	Dec. 31, 2015
Related Party Transactions [Abstract]
Share Purchase Agreement	4. Share Purchase Agreement On February 4, 2015, the Company entered into a Share Purchase Agreement with American Realty Partners, LLC (“ARP”), a limited liability company formed in the State of Arizona on September 16, 2013, pursuant to which ARP acquired 58,809,678 pre-split shares of common stock, representing 50.67% of the total issued and outstanding shares of common stock of the Company, and 20,000 shares of Series A preferred stock of the Company, representing 100% of the total issued and outstanding shares of Series A preferred stock of the Company in consideration for $325,000. The agreement closed on February 13, 2015. ARP 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.

Reverse Merger

Reverse Merger	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Reverse Merger	5. Reverse Merger On May 15, 2015, the Company entered into a Stock Exchange and Restructuring Agreement (“Stock Exchange Agreement”) with ARP. The transaction closed on July 6, 2015 and, pursuant to the agreement, the Company issued 5,000,000 shares of common stock in exchange for all the membership units in APR on a pro rata basis. The Company was issued 100 units of ARP. As a result of this transaction, ARP became a subsidiary of the Company. The transaction is accounted for as a reverse acquisition and ARP is considered the accounting acquirer for financial reporting purposes. These consolidated financial statements include the accounts of the Company since the effective date of the recapitalization and the historical accounts of ARP since inception. The comparative figures of 2014 are those of ARP who is deemed to be the continuing entity for accounting purposes.

Formation of AHIT-Valfre, LLP

Formation of AHIT-Valfre, LLP	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Formation of AHIT-Valfre, LLP	6. Formation of AHIT-Valfre, LLP On August 1, 2015, the Company entered into the Master UPREIT Formation Agreement resulting in the formation of AHIT Valfre, LLP, a Maryland limited liability partnership. The Company is the General Partner of the limited liability partnership. AHIT Valfre is intended to serve as an umbrella partnership real estate investment trust, commonly referred to as an "UPREIT". On August 3, 2015, AHIT Valfre acquired from the Valfre limited partners, nine properties in exchange for a total consideration of approximately $1,735,000 consisting of 300,026 common units in the UPREIT valued at approximately $532,000, which carry with them certain option rights into shares of common stock in the Company and the assumption of certain mortgage notes totaling approximately $1,203,000.

Investment in Real Estate

Investment in Real Estate	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Investment in Real Estate	7. Investment in Real Estate December 31, 2015 December 31, 2014 Cost of real estate properties $ 9,220,379 $ 5,291,868 Accumulated depreciation (223,450 ) (119,398 ) Balance at the end of the period $ 8,996,929 $ 5,172,470 During the year ended December 31, 2015, the Company recorded depreciation expense of $105,863 (2014 - $74,670).

Prepaid Rent Received

Prepaid Rent Received	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Prepaid Rent Received	8. Prepaid Rent Received December 31, 2015 December 31, 2014 Balance, beginning of year $ 7,450 $ 5,973 Prepaid rent recognized as revenue during the year (7,450 ) (5,973 ) Prepaid rent received during the year 39,598 7,450 Balance, end of year $ 39,598 $ 7,450

Notes Receivable

Notes Receivable	12 Months Ended
	Dec. 31, 2015
Receivables [Abstract]
Notes Receivable	9. Notes Receivable 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 year ended December 31, 2015, the Company collected the $120,000 note receivable and recognized $9,364 (2014 - $8,800) of interest income from the note receivable.

Related party transactions

Related party transactions	12 Months Ended
	Dec. 31, 2015
Related Party Transactions [Abstract]
Related party transactions	10. Related party transactions a) ARP has been advised and managed by Performance Realty Management, LLC (“PRM”), an Arizona limited liability company (the “Manager”). At the formation of ARP, ARP agreed to pay the Manager of ARP quarterly management fees equal to the greater of: (a) $120,000 on an annual basis, or (b) 1% of the total assets of ARP in consideration for the management services to be rendered to or on behalf of ARP by the Manager. During the year ended December 31, 2015, the Company recorded management fees of $120,000 (2014 - $120,000). As at December 31, 2015, ARP is owed $2,455 from the Manager of ARP (December 31, 2014 – ARP is indebted to the Manager of ARP for $54,382), which represents general and administrative expenses ARP paid on behalf of the Manager. On December 21, 2015, ARP amended its operating agreement with PRM wherein it ratified the issuance of 1,000,000 post-split shares of restricted common stock as the sole compensation paid to PRM for serving as manager of ARP. Commencing January 1, 2016, PRM will serve as the Manager of ARP at no cost. On January 20, 2015, ARP also acquired a 46% “Tenant in Common” (TIC) ownership interest in a real property owned by PRM for a total consideration of approximately $208,000. Subsequent to December 31, 2015, ARP sold its ownership interest in the property to PRM for approximately $211,000. b) On January 16, 2015, PRM entered into a promissory note agreement on behalf of ARP 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 ARP. The proceeds from the note was used to purchase another real estate property. On May 12, 2015, ARP repaid the $150,000 note. c) On May 15, 2015, the Company entered into an Advisory Board Consulting and Compensation Agreement with a director of the Company pursuant to which the Company agreed to issue 1,000,000 post-split shares of common stock to the director. In addition, the Company agreed to pay the director an annual fee equal to $120,000 or 1% of the Company’s assets as reported on its year-end balance sheet, whichever is greater. The Company will also issue an aggregate of 3,000,000 post-split shares of common stock of the Company on the first, second and third anniversary. During the year ended December 31, 2015, the Company recorded management fees of $75,000 (2014 - $nil). As at December 31, 2015, the Company is indebted to the director of the Company for $3,050 which represents management fees and other general and administrative expenses paid on behalf of the Company. The 1,000,000 post-split shares of AHIT were issued on July 6, 2015. On February 25, 2016, the Company amended the Advisory Board Consulting and Compensation Agreement and the director agreed to serve on the Board of Directors at no cost. d) On May 15, 2015, the Company entered into a Director Agreement with a director of the Company pursuant to which the Company 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 year ended December 31, 2015, the director did not provide any services to the Company and the Company recorded $nil in directors’ fees. The 25,000 post-split shares of the Company were issued on July 6, 2015. e) On October 12, 2015, the Company entered into an Executive Agreement with its Chief Executive Officer (the “CEO”) pursuant to which the Company agreed to pay an annual salary of $64,800 between October 12, 2015 and October 12, 2016 (the “Initial Term”). The Executive Agreement has successive one-year renewal periods (a “Renewal Term”). In addition, the Company and its CEO agreed to the following escalators either during the Initial Term or Renewal Term, if applicable: (a) The Company agrees to increase the CEO’s compensation by an additional $25,000 per annum and shall issue an additional issuance of 25,000 post-split shares of common stock to the CEO when the Company achieves the milestone of gross revenue of $1,000,000 per annum; (b) The Company agrees to increase the CEO's compensation by an additional $25,000 per annum when the Company has achieved the milestone of gross revenue of $1,500,000 per annum; and (c) The Company agrees to increase the CEO's compensation by an additional $25,000 per annum, and issue an additional issuance of 25,000 post-split shares of common stock when the Company has achieved the milestone of gross revenue of $2,000,000 per annum. During the year ended December 31, 2015, the Company recorded management fees of $14,164 (2014 - $nil). As at December 31, 2015, the Company is indebted to the CEO of the Company for $14,164 which represents unpaid management fees. f) As of December 31, 2015, in the consolidated balance sheets, the Company has outstanding related party receivables of $2,455 for advances to related parties which are netted against $17,350 of amounts due to related parties for expenses paid on behalf of the Company and management fees owed to a director and the CEO of the Company.

Notes payable

Notes payable	12 Months Ended
	Dec. 31, 2015
Debt Disclosure [Abstract]
Notes payable	11. Notes payable December 31, 2015 $ December 31, 2014 $ 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 203,343 213,100 Promissory note payable on February 1, 2016, 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 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 the Company. 1,651,183 1,673,044 Promissory note payable on December 1, 2020, bearing interest at 5.88% per annum, collateralized by the real estate properties titled to ARP Borrower II, LLC and 100% equity ownership in ARP Borrower II, LLC. 968,000 — Promissory note payable on May 27, 2016, bearing interest at 16% per annum, collateralized by a deed of trust on the real estate property purchased with the loan 180,000 — Promissory note payable on July 8, 2016, bearing interest at 18% per annum initially and at 12% per annum after four months, collateralized by a deed of trust on the real estate property purchased with the loan 80,000 — Mortgage payable on April 1, 2018, bearing interest at 5% per annum, collateralized by a deed of trust on the real estate properties purchased with the loan 18,861 — Mortgage payable on July 1, 2029, bearing interest at 4.125% per annum, collateralized by a deed of trust on the real estate properties purchased with the loan 91,943 — Home Equity Line-of-credit, bearing interest at a variable interest rate, collateralized by a deed of trust on the real estate properties purchased with the loan 46,108 — Mortgage payable on October 1, 2035, bearing interest at a variable rate, collateralized by a deed of trust on the real estate properties purchased with the loan 140,512 — Mortgage payable on June 1, 2043, bearing interest at 4.125% per annum, collateralized by a deed of trust on the real estate properties purchased with the loan 113,036 — Mortgage payable on July 1, 2041, bearing interest at 5.25% per annum, collateralized by a deed of trust on the real estate properties purchased with the loan 274,905 — Home Equity Line-of-credit, bearing interest at 8.25% per annum, collateralized by a deed of trust on the real estate properties purchased with the loan 34,484 — Mortgage payable on June 1, 2043, bearing interest at 4.125% per annum, collateralized by a deed of trust on the real estate properties purchased with the loan 132,362 — Mortgage payable on December 1, 2034, bearing interest at a variable rate, collateralized by a deed of trust on the real estate properties purchased with the loan 111,168 — Mortgage payable on January 1, 2022, bearing interest at 4.375% per annum, collateralized by a deed of trust on the real estate properties purchased with the loan 16,683 — Mortgage payable on September 1, 2033, bearing interest at a variable rate, collateralized by a deed of trust on the real estate properties purchased with the loan 76,336 — Home Equity Line-of-credit payable on January 13, 2040, bearing interest at 2.76% per annum, collateralized by a deed of trust on the real estate properties purchased with the loan 50,215 — Mortgage payable on November 1, 2026, bearing interest at 4.5% per annum, collateralized by a deed of trust on the real estate properties purchased with the loan 82,526 — 4,271,665 2,016,144 On June 25, 2015, ARP Borrower, LLC (“Borrower”), and ARP Pledgor, LLC (“Pledgor”), two wholly owned subsidiaries of ARP, 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 the Company is the new guarantor of the loan. The following table schedules the principal payments on the notes payable for the next five years and thereafter as of December 31, 2015: Year Amount 2016 $ 426,787 2017 90,715 2018 84,898 2019 1,639,647 2020 968,380 thereafter 1,061,238 Total $ 4,271,665 At December 31, 2015, the weighted-average interest rate on short-term borrowings outstanding was 12.60%. The average amount of short-term borrowings during the year ended December 31, 2015 was $148,500. The average interest on short-term borrowings during the year ended December 31, 2015 was $14,549.

Common Stock

Common Stock	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Common Stock	12. Common Stock a) During the year ended December 31, 2014, the Company authorized the sale of 1,140,850 post-split shares of common stock of the Company and received total proceeds of $2,001,029. b) During the year ended December 31, 2014, the Company issued 108,325 post-split shares of common stock of the Company in exchange for real estate properties with a fair value of $190,000. c) During the year ended December 31, 2014, the Company exchanged notes amounting to $30,000 for 17,104 post-split shares of common stock of the Company. d) On February 4, 2015, the board of directors of the Company approved a 1,000 to 1 reverse stock split of the Company’s common stock which resulted to the increase in the par value of the Company’s common stock from $0.00001 to $0.01. All common stock amounts have been retroactively adjusted for all periods presented. e) On May 15, 2015, the Company issued 1,000,000 post-split shares of common stock with a fair value of $200,000 pursuant to the Advisory Board Consulting and Compensation Agreement as described in Note 9(c). f) On July 6, 2015, the Company issued 25,000 post-split shares of common stock with a fair value of $5,000 pursuant to the Director Agreement as described in Note 9(d). g) On September 18, 2015, the Company issued 18,000 post-split shares of common stock with a fair value of $54,000 pursuant to the consulting agreement as described in Note 13(b). On November 24, 2015, the consulting agreement was terminated. During the year ended December 31, 2015, the Company reversed the fair value of $54,000 recognized as general and administrative expense as the Company entered into a Mutual Release agreement subsequent to the year end pursuant to which the 18,000 post-split shares of common stock were cancelled. h) On September 18, 2015, the Company issued 6,000 post-split shares of common stock with a fair value of $18,000 pursuant to the consulting agreement as described in Note 13(c). i) On September 21, 2015, the Company issued 1,000,000 post-split shares of common stock with a fair value of $200,000 to PRM upon receipt of written notice from PRM pursuant to the Subsidiary Agreement as described in Note 13(a). j) During the year ended December 31, 2015, the Company issued 413,669 post-split shares of common stock at $3 per share for cash proceeds of $1,241,003. k) During the year ended December 31, 2015, the Company authorized the sale of 1,037,297 post-split shares of common stock and received total proceeds of $1,819,502. l) During the year ended December 31, 2015, the Company issued 171,040 post-split shares of common stock in exchange for real estate properties with a fair value of $300,000.

Single Family Residence Acquisi

Single Family Residence Acquisitions	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Single Family Residence Acquisitions	13. Single Family Residence Acquisitions As of December 31, 2015, the Company owns 46 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. MSA / Metro Division Number of Homes Aggregate Investment Average Investment per Home Arizona 42 $ 8,643,492 $ 205,797 Nevada 1 211,201 211,201 Texas 3 365,686 121,895 Total and Weighted Average 46 $ 9,220,379 $ 200,443 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.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	14. Commitments and Contingencies a) On May 15, 2015, ARP entered into Parent-Subsidiary and Operations Agreement (“Subsidiary Agreement) with the Company and Performance Realty Management, LLC (“PRM”). Pursuant to the Subsidiary Agreement, the Company agreed to be bound by ARP’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 post-split shares of the Company as consideration for services to be rendered by PRM upon written notice to the Company. On December 21, 2015, ARP amended its operating agreement with PRM wherein it ratified the issuance of the 1,000,000 post-split shares of restricted common stock as the sole compensation paid to PRM for serving as manager of ARP. b) On July 10, 2015, the Company entered into a Consulting Agreement with Tech Associates, Inc., a California corporation (“Tech Associates”), whereby Tech Associates agreed to provide consulting and corporate advisory services to the Company on a month-to-month basis in consideration of $3,000 per month and the issuance of 6,000 restricted post-split shares of common stock per month. On September 18, 2015, the Company issued 18,000 post-split shares of common stock in connection with this agreement. On November 24, 2015, the Consulting Agreement was terminated. On January 12, 2016, the Company entered into a Mutual Release Agreement whereby Tech Associates agreed to release AHIT from any and all further obligations under the Consulting Agreement and to cancel the 18,000 post-split shares of the Company’s stock previously issued to Tech Associates. c) On September 11, 2015, the Company entered into a Consulting Agreement with a consultant to provide primarily internet and search optimization services with the intent to drive interest traffic to the Company’s website. In consideration for the services, the Company agreed to pay a one-time fee of $2,000 and the issuance of 6,000 post-split shares of common stock. On December 4, 2015, the Consulting Agreement was terminated. Lease Agreements The Company rents properties under non-cancellable lease agreements with a term of one year. Future minimum rental revenues under leases existing on our properties at December 31, 2015 through the end of their term, are as follows: Fiscal Year 2016 $ 453,388 Fiscal Year 2017 42,080 Total $ 495,468 Litigation Other than the litigation identified herein, the Company is not presently subject to any material litigation nor, to its knowledge, is any material litigation threatened against the Company, which if determined unfavorably to the Company, would have a material adverse effect on the Company's consolidated financial position, consolidated results of operations, or consolidated cash flows. The Company is a defendant in a civil matter pending in San Joaqin County, California brought by a current shareholder – Ronald Trinchitella and Billie Jean Trinchitella TTEE Trinchitella Family Trust DTD 7/15/1999. The plaintiff was a member in American Realty prior to the Share Exchange Agreement with the Company was effectuated. The plaintiff is seeking rescission damages against American Realty, i.e. a return of his investment, on the premise that Performance Realty was required to honor his demand for redemption of his units when, according to American Realty, honoring the redemption was at the sole discretion of Performance Realty. The Company is a defendant by virtue of its relationship with American Realty. The Company has denied all allegations and is defending the case. Environmental Matters The Company follows a policy of monitoring its properties for the presence of hazardous or toxic substances. While there can be no assurance that a material environmental liability does not exist at its properties, the Company is not currently aware of any environmental liability with respect to its properties that would have a material effect on its consolidated balance sheets, consolidated statements of operations, or consolidated cash flows. Additionally, the Company is not aware of any material environmental liability or any unasserted claim or assessment with respect to an environmental liability that management believes would require additional disclosure or the recording of a loss contingency.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Income Taxes	15. Income Taxes The Company’s deferred tax assets as of December 31, 2015 consist of the following: Non-operating loss carry forward (NOL) at 34% $ 940,029 Less: valuation allowance (940,029 ) Net deferred tax asset from NOLs — Prepaid rent at 34% 10,641 Depreciation at 34% 2,621 Stock based compensation at 34% (12,708 ) Less: reserve due to REIT election (554 ) $ — For the 2016 tax year, the Company is planning to elect and qualify as a REIT under the Internal Revenue Code. To qualify as a REIT, it must meet a number of organizational and operational requirements, including a requirement that it distribute at least 90% of its adjusted taxable income to its stockholders. It is management’s current intention to adhere to these requirements and be eligible to be a REIT for the year ended December 31, 2016. As a REIT, it generally will not be subject to corporate level federal income tax on taxable income distributed to stockholders. If it fails to qualify as a REIT for the 2016 tax year, it will be subject to federal income taxes at corporate tax rates. Even if it qualifies to be taxed as a REIT for 2016, it may be subject to state taxes and federal income and excise taxes on any undistributed taxable income. For the 2016 tax year, the Company intends to distribute all of its taxable income; therefore, all deferred tax assets have been reserved. Regarding state taxes, a REIT is still subject to the Texas franchise tax, even though the REIT receives a federal dividends paid deduction for taxable income. The Texas franchise tax is .575% of gross receipts. The Company follows ASC Topic 740, “Accounting for Income Taxes,” to recognize, measure, present and disclose in its consolidated financial statements uncertain tax positions that it has taken or expects to be taken on a tax return. As of December 31, 2014, the Company did not have any liabilities for uncertain tax positions that it believes should be recognized in its consolidated financial statements. The Company is not subject and has not been subject to any federal or state income tax examinations. The Company had federal and state net operating loss carry forwards of approximately $2,764,792, as of December 31, 2015. The tax loss carry forwards are available to offset future taxable income with the federal and state carry forwards beginning to expire in 2028. The realization of the tax benefits are subject to the sufficiency of taxable income in future years. The combined deferred tax assets represent the amounts expected to be realized before expiration. The Company periodically assesses the likelihood that it will be able to recover its deferred tax assets. The Company considers all available evidence, both positive and negative, including expectations and risks associated with estimates of future taxable income and ongoing prudent and feasible profits. As a result of this analysis of all available evidence, both positive and negative, the Company concluded that it is not likely that its net deferred tax assets will ultimately be recovered; as such, it recorded a valuation allowance for the net operating loss and a reserve due to the anticipated REIT election.

Subsequent Events

Subsequent Events	12 Months Ended
	Dec. 31, 2015
Subsequent Events [Abstract]
Subsequent Events	16. Subsequent Events a) On February 25, 2016, the Company amended the Advisory Board Consulting and Compensation Agreement as disclosed in Note 9(c). As a result, the director and Chief Financial Officer (“CFO”) of the Company agreed to serve on the Board of Directors at no cost. In addition, the Company entered into an employment agreement with the CFO of the Company for a period of three years. The Company agreed to pay the CFO an annual salary equal to $120,000 or 1% of the Company’s assets as reported on its year-end balance sheet, whichever is greater. The Company issued an aggregate of 3,000,000 post-split shares of common stock of the Company at a fair value of $9,000,000 on February 25, 2016, of which the stock based compensation will be amortized over 3 years. b) Subsequent to the year ended December 31, 2015, the Company sold a property to a related party at the price of $211,201 and recognized a gain of $4,981.

Schedule III - Real Estate and

Schedule III - Real Estate and Accumulated Depreciation	12 Months Ended
	Dec. 31, 2015
SEC Schedule III, Real Estate and Accumulated Depreciation Disclosure [Abstract]
Schedule III - Real Estate and Accumulated Depreciation	Schedule III – Real Estate and Accumulated Depreciation As at December 31, 2015 Encumbrances Initial Cost to Company Costs Capitalized Subsequent to Acquisitions Total Cost Market Location Number of Properties Owned Number of Encumbered Properties Encumbrances (1) Land Building Land Improvements Building Improvements Land and Land Improvements Building and Improvements Total Accumulated Depreciation (2) Date of Construction Range Date Acquired Anthem, AZ 17 17 $ 1,694,967 $ 2,623,014 $ 667,058 $ — $ 98,022 $ 2,623,014 $ 765,080 $ 3,388,094 $ 71,473 1999 - 2006 2011 – 2015 Avondale, AZ 1 1 86,163 86,400 21,600 — 13,952 86,400 35,552 121,952 1,740 1991 2014 Las Vegas, NV 1 — — 68,913 139,915 — 2,372 68,913 142,287 211,200 4,981 2014 2014 Mesa, AZ 1 1 105,490 232,000 58,000 — 6,872 232,000 64,872 296,872 5,910 1987 2013 New River, AZ 1 1 93,385 192,000 48,000 — 11,171 192,000 59,171 251,171 4,035 2007 2014 Peoria, AZ 2 2 165,326 298,400 74,650 — 2,300 298,400 76,950 375,350 10,739 1994 - 2004 2012 Phoenix, AZ 6 3 240,927 581,760 145,440 — 798,668 581,760 944,108 1,525,868 46,676 1964 - 2014 2011 – 2015 Prescott, AZ 1 1 172,857 240,000 60,000 — 2,657 240,000 62,657 302,657 1,605 1983 2015 Scottsdale, AZ 3 2 220,077 361,843 90,461 — 44,622 361,843 135,083 496,926 11,662 1974 - 1998 2012 – 2015 Sun City West, AZ 1 1 99,991 96,000 24,000 — 28,869 96,000 52,869 148,869 2,664 1987 2014 Tucson, AZ 5 5 506,501 254,298 593,363 — — 254,298 593,363 847,661 11,457 1972 - 2006 2015 Vail, AZ 4 4 682,637 266,422 621,650 — — 266,422 621,650 888,072 12,004 2001 – 2006 2015 Willis, TX 3 3 203,344 238,827 81,859 — 45,000 238,827 126,860 365,687 38,504 1985 2014 46 41 $ 4,271,665 $ 5,539,877 $ 2,625,996 $ — $ 1,054,505 $ 5,539,877 $ 3,680,502 $ 9,220,379 $ 223,450 (1) Encumbrances include the number of properties collateralized by deeds of trust as well as the aggregate value of outstanding debt attributable to such properties. (2) Depreciation of building and improvements is computed on a straight-line basis over the estimated useful life of 27 years, with no salvage value. The changes in investments in real estate for the years ended December 31, 2015 and 2014 are as follows: 2015 2014 Balance, beginning of year $ 5,291,868 $ 3,808,442 Acquisition of real estate 3,665,362 1,960,787 Improvements 654,668 335,564 Disposition and other (391,519 ) (812,925 ) Balance, end of year $ 9,220,379 $ 5,291,868 The changes in accumulated depreciation for the years ended December 31, 2015 and 2014 are as follows: 2015 2014 Balance, beginning of year $ 119,398 $ 57,075 Depreciation expense 105,863 74,670 Disposition and other (1,811 ) (12,347 ) Balance, end of year $ 223,450 $ 119,398

Summary of Significant Accoun24

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
Basis of Presentation and Principles of Consolidation	a) Basis of Presentation and Principles of Consolidation These consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“US”). These consolidated financial statements include the accounts of the Company, its wholly-owned subsidiary ARP, and its subsidiary special purpose entities, ARP Pledgor, LLC, ARP Borrower, LLC, ARP Pledgor II, LLC, APR Borrower II, LLC and AHIT-Valfre, LLP. All significant intercompany transaction and balances have been eliminated. On June 24, 2015, the Company’s fiscal year-end is changed from January 31 to December 31.
Use of Estimates	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.
Cash and Cash Equivalents	c) Cash and Cash Equivalents The Company considers all highly liquid instruments with maturity of three months or less at the time of issuance to be cash equivalents.
Income Taxes	d) Income Taxes The Company accounts for income taxes using the asset and liability method in accordance with ASC 740, “ Income Taxes The Company plans on electing to be taxed as a Real Estate Investment Trust (“REIT”) for federal income tax purposes beginning in 2016. REITs are generally not subject to federal income taxes if the Company can meet many specific requirements. If the Company fails to qualify as a REIT in any taxable year, the Company will be subject to federal and state income tax (including any applicable alternative minimum tax) on our taxable income at regular corporate tax rates, and the Company may be ineligible to qualify as a REIT for subsequent tax years. Even if the Company qualifies as a REIT, the Company may be subject to certain state or local income taxes, and if the Company creates a Taxable REIT Subsidiary (“TRS”), the TRS will be subject to federal, state and local taxes on its income at regular corporate rates. The Company recognizes the tax effects of uncertain tax positions only if the position is more likely than not to be sustained upon audit, based on the technical merits of the position. The Company has not identified any material uncertain tax positions and recognizes interest and penalties in income tax expense, if applicable.
Investment in Real Estate	e) Investment in Real Estate The Company allocates the purchase price to tangible assets of an acquired property (which includes land and building) based on the estimated fair values of those tangible assets. Fair value for land and building is based on the purchase price for these properties. Property/SFRs acquired not subject to an existing lease are accounted for as an asset acquisition, with the property recorded at the purchase price, including acquisition costs. We incur costs to prepare our acquired properties to be rented. These costs are capitalized and allocated to building costs. Costs related to the restoration or improvement of our properties that improve and extend their useful lives are capitalized and depreciated over their estimated useful lives. Expenditures for ordinary repairs and maintenance are expensed as incurred. Depreciation is computed on a straight-line basis over the useful lives of the properties (building and improvements – 27 years).
Accounts Receivable	f) Accounts Receivable Accounts receivable represent the amount of rent receivables and interest receivable from promissory notes receivable invested by the Company, net of any allowance for amounts deemed uncollectible. The Company assesses these balances for collectability on a quarterly basis.
Impairment of Long-lived Assets	g) Impairment of Long-lived Assets The Company continually evaluates the recoverability of the carrying value of its real estate assets using the methodology prescribed in ASC Topic 360, Property, Plant and Equipment
Fair Value of Financial Instruments	h) Fair Value of Financial Instruments The carrying amounts reported in the consolidated balance sheets for 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 Level 2 Level F The Company does not have any financial instruments that are required to be measured and recorded at fair value on a recurring basis.
Non-controlling Interest	i) Non-controlling Interest Limited partnership units in AHIT-Valfre that are not owned by the Company are presented as non-controlling interest in the equity section of our consolidated balance sheets. Our limited partners do not have the right to share in the net income or losses of AHIT-Valfre but have the right to convert all or part of their partnership units to common shares of the Company on a one-for-one basis following the one-year anniversary of issuance. At the time of redemption, we have the right to determine whether to redeem the non-controlling limited partnership units of AHIT-Valfre for cash, based upon the fair value of an equivalent number of shares of our common stock at the time of redemption. Consequently, the limited partnership units are classified as permanent equity. As of December 31, 2015, there were 300,026 limited partnership units outstanding in AHIT-Valfre. These units were issued in connection with our acquisition of certain real estate properties. (See Note 6).
Revenue Recognition	j) Revenue Recognition Rental income for property leases is recorded when due from residents and is recognized monthly as it is earned. The Company leases single-family residences that the Company owns and manages directly to tenants who occupy the properties under operating leases, generally, with terms of one year. The Company performs credit investigations on prospective tenants and obtains security deposits. Sales and the associated gains or losses of real estate assets are recognized in accordance with the provisions of ASC Topic 360-20, Property, Plant and Equipment – Real Estate Sale
Stock-based Compensation	k) Stock-based Compensation The Company records stock-based compensation in accordance with ASC 718, Compensation – Stock Based Compensation Equity Based Payments to Non-Employees
Recent Accounting Pronouncements	l) 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.