Corix Bioscience (CXBS) 10-Q/A 9 Nov 17 2016 Q3 Quarterly report (amended) Financial data

Document and Entity Information

Document and Entity Information	9 Months Ended
	Sep. 30, 2016shares
Document And Entity Information
Entity Registrant Name	Corix Bioscience, Inc.
Entity Central Index Key	1,433,821
Document Type	10-Q/A
Document Period End Date	Sep. 30, 2016
Amendment Flag	true
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 Common Stock, Shares Outstanding	9,172,407
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,016
Amendment Description	Corix Bioscience, Inc., f/k/a American Housing Income Trust, Inc., (the “Company”) files this Amendment to its Quarterly Report on Form 10-Q for the third quarter of the 2016 fiscal year to correct a scriveners error. In the Company’s original filing, the Company inadvertently checked “Yes” as to whether the Company was a shell. However, the Company changed its shell status in the second quarter of the 2015 fiscal year and is now operational. This Amendment corrects that error. The remainder of the Quarterly Report is unchanged.

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Investment in real estate:
Land	$ 6,840,848	$ 5,539,877
Building and improvements	5,173,719	3,680,502
Land and Land Improvements	12,014,567	9,220,379
Less: accumulated depreciation	(327,728)	(223,450)
Investment in real estate, net	11,686,839	8,996,929
Cash	90,646	199,570
Accounts receivable	6,188
Other assets	263,891	221,033
Equipment, net	4,734
Total Assets	12,052,298	9,417,532
LIABILITIES
Accounts payable and accrued liabilities	240,537	88,210
Due to related parties	436,372	14,895
Note Payable - related party	75,809	0
Prepaid rent received	23,838	39,598
Notes payable	5,236,792	4,271,665
Total Liabilities	6,013,348	4,414,368
SHAREHOLDERS' EQUITY
Preferred Stock, 9,980,000 shares authorized, $0.001 par value; no shares issued and outstanding (December 31, 2015 - no shares)	0	0
Common stock, 500,000,000 shares authorized, par value $0.01; 8,288,301 shares outstanding (December 31, 2015 - 7,566,815 shares)	91,919	75,668
Additional paid-in capital	16,570,371	12,390,239
Accumulated deficit	(12,285,258)	(7,994,647)
Total American Housing Income Trust, Inc.'s Shareholders' Equity	4,377,032	4,471,260
Non-controlling interest	1,661,918	531,904
Total Shareholders' Equity	6,038,950	5,003,164
Total Liabilities and Shareholders' Equity	12,052,298	9,417,532
Preferred Class A [Member]
SHAREHOLDERS' EQUITY
Preferred Stock - Series A, 20,000 shares authorized, $0.001 par value; no shares issued and outstanding (December 31, 2015 - no shares)	$ 0	$ 0

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2016	Dec. 31, 2015
Preferred Stock, Shares Authorized	9,980,000	9,980,000
Preferred Stock, Par Value	$ .001	$ .001
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Common Stock, Shares Authorized	500,000,000	500,000,000
Common Stock, Par Value	$ .01	$ 0.01
Common Stock, Shares Outstanding	9,191,907	7,566,815
Preferred Class A [Member]
Preferred Stock, Shares Authorized	20,000	20,000
Preferred Stock, Par Value	$ .001	$ 0.001
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Revenue
Rental revenues	$ 175,695	$ 124,247	$ 503,077	$ 312,691
Interest income	0	2,400	0	7,202
Other Income	0	6,797	133	7,297
Total revenue	175,695	133,444	503,210	327,190
Expenses
Depreciation	44,247	28,189	109,642	68,469
General and administrative	1,588,536	1,143,678	4,402,634	2,097,037
Interest expense	91,038	85,666	286,526	199,630
Acquisition expense	0	0	0	325,000
Total expenses	(1,723,821)	(1,257,533)	(4,798,802)	(2,690,136)
Net loss before gain on sale of properties	(1,548,126)	(1,124,089)	(4,295,592)	(2,362,946)
Gain on sale of properties	0	0	4,981	71,293
Net Loss	(1,548,126)	(1,124,089)	(4,290,611)	(2,291,653)
Net loss attributable to non-controlling interest	0	0	0	0
Net loss attributable to common stockholders	$ (1,548,126)	$ (1,124,089)	$ (4,290,611)	$ (2,291,653)
Basic and diluted loss per share:
Net loss per share attributable to common stockholders	$ (.18)	$ (.17)	$ (.52)	$ (.45)
Weighted average shares outstanding - basic and diluted	8,844,605	6,488,000	8,206,447	5,131,000

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash Flows from Operating Activities
Net loss	$ (4,290,611)	$ (2,291,653)
Items not affecting cash:
Depreciation	109,642	68,469
Stock-based compensation	2,601,058	477,000
Gain on sale of assets	(4,981)	(71,293)
Gain on forgiveness of accounts payable	(8,088)	0
Changes in operating assets and liabilities:
Accounts receivable	(6,188)	0
Prepaid expenses	(41,569)	(69,492)
Accounts payable	77,791	23,152
Accrued liabilities	82,624	21,135
Prepaid rent	(15,760)	25,023
Due to related parties	(4,297)	(151,852)
Net Cash Used In Operating Activities	(1,500,379)	(1,969,511)
Cash Flows from Investing Activities
Purchase of real estate properties and improvements	(22,908)	(1,033,106)
Proceeds from sale of real estate properties	211,200	11,000
Purchase of equipment	(5,116)	0
Net Cash Provided by (Used in) Investing Activities	183,176	(922,106)
Cash Flows from Financing Activities
Proceeds from the sale of common stock	509,600	2,926,505
Advances from related parties, net	425,774	0
Proceeds from notes payable	325,232	120,000
Repayment of notes payable	(52,327)	(34,575)
Net Cash Provided by Financing Activities	1,208,279	3,011,930
Change in Cash	(108,924)	120,313
Cash - Beginning of Period	199,570	304,371
Cash - End of Period	90,646	424,684
Interest paid	216,815	199,630
Income taxes paid	$ 0	$ 0
Stock issued for acquisition of real properties	1,085,726	300,000
Notes payable issued with acquisition of real properties	$ 691,155	$ 2,445,648
Notes payable settled from sale of real properties	$ 0	$ 350,000

Note 1 - Nature of Operations

Note 1 - Nature of Operations	9 Months Ended
	Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Note 1 - 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 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. On April 8, 2016, AHIT Valfre completed its internal restructuring and the partners in AHIT Valfre restructured their respective interests in the partnership resulting in AHIT Valfre GP, LLC (“AHIT Valfre GP”) and AHIT Valfre Limiteds, LLC (“AHIT Valfre Limiteds”) serving as General Partner and Limited Partner respectively, of AHIT Valfre. On August 2, 2016, the Company, and Northern New Mexico Properties, LLC, a New Mexico limited liability company closed on the Company’s acquisition of six single family residences, four apartments and sixteen mobile homes spaces located in New Mexico through an umbrella limited liability partnership organized in Maryland called “AHIT Northern NM Properties, LLP” (“AHIT NNMP). Pursuant to the AHIT NNMP Agreements, in consideration for the conveyance of the six single family residences, four apartments and sixteen mobile homes spaces, which were acquired by AHIT NNMP “subject to” existing mortgages, AHIT NNMP issued limited partnership interests to Northern New Mexico Properties, LLC. The Company is in the business of acquiring and operating residential properties. As of the date of this filing, the Company holds title to 54 residential properties and 1 commercial property.

Note 2 - Summary of Significant

Note 2 - Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Note 2 - Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies a) Basis of Presentation and Principles of Consolidation These unaudited consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“US”) and the rules of the Securities and Exchange Commission and should be read in conjunction with the audited financial statements and notes for the years ended December 31, 2015 and 2014 contained in the Company’s Form 10-K filed on March 30, 2016. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary to present fairly the Company's financial position, results of operations and cash flows for the periods shown have been reflected herein. The results of operations for such periods are not necessarily indicative of the results expected for a full year or for any future period. Notes to the financial statements which would substantially duplicate the disclosure contained in the audited financial statements for the years ended December 31, 2015 and 2014 as reported in the Company's Form 10-K have been omitted. These consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries ARP, and its subsidiary special purpose entities, ARP Pledgor, LLC, ARP Borrower, LLC, ARP Pledgor II, LLC, APR Borrower II, LLC, AHIT Valfre, LLP, AHIT Valfre GP, LLC and AHIT NNMP, LLP. All significant intercompany transaction and balances have been eliminated. 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 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: L evel 1 Level 2 Level 3 The Company does not have any financial instruments that are required to be measured and recorded at fair value on a recurring basis. d) Non-controlling Interest Limited partnership units in AHIT Valfre and AHIT NNMP 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 and AHIT NNMP 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 and AHIT NNMP for cash, based upon the fair value of an equivalent number of shares of our common stock at the time of redemption. As of September 30, 2016, there were 300,026 limited partnership units outstanding in AHIT Valfre and 500,614 limited partnership units outstanding in AHIT NNMP. e) Recent Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which supersedes ASC 840, Leases. This ASU is based on the principle that entities should recognize assets and liabilities arising from leases. The ASU does not significantly change the lessees’ recognition, measurement and presentation of expenses and cash flows from the previous accounting standard. Leases are classified as finance or operating. The ASU’s primary change is the requirement for entities to recognize a lease liability for payments and a right of use asset representing the right to use the leased asset during the term on operating lease arrangements. Lessees are permitted to make an accounting policy election to not recognize the asset and liability for leases with a term of twelve months or less. Lessors’ accounting under the ASC is largely unchanged from the previous accounting standard. In addition, the ASU expands the disclosure requirements of lease arrangements. Lessees and lessors will use a modified retrospective transition approach, which includes a number of practical expedients. The effective date will be the first quarter of fiscal year 2019 with early adoption permitted. Management continues to assess the overall impact the adoption of ASU 2016-02 will have on the Company’s financial statements In March 2016, the FASB issued ASU 2016-09, Compensation—Stock Compensation, Improvements to Employee Share-Based Payment Accounting (Topic 718). This update is intended to provide simplification of the accounting for share based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The effective date will be the first quarter of fiscal year 2017 with early adoption permitted. Management continues to assess the overall impact the adoption of ASU 2016-09 will have on the Company’s financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force). ASU 2016-15 reduces diversity in practice in how certain transactions are classified in the statement of cash flows. The effective date will be the first quarter of fiscal year 2018 with early adoption permitted. Management continues to assess the overall impact the adoption of ASU 2016-15 will have on the Company’s financial statements. 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.

Note 3 - Going Concern

Note 3 - Going Concern	9 Months Ended
	Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Note 3 - Going Concern	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 nine months ended September 30, 2016, the Company incurred a net loss of $ s at September 30, 2016, the Company has accumulated losses of $12,285,258 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. Management has developed a plan to continue operations. This plan includes obtaining equity financing and reducing expenses. Although the Company has successfully completed financings in the past fiscal years, the Company cannot assure that the plans to address these matters in the future will be successful.

Note 4 - Formation of AHIT-NNMP

Note 4 - Formation of AHIT-NNMP	9 Months Ended
	Sep. 30, 2016
Business Combinations [Abstract]
Note 4 - Formation of AHIT-NNMP	4. On July 13, 2016, the Company entered into the Master UPREIT Formation Agreement set forth in Section 1, above, resulting in the formation of AHIT NNMP, LLP, a Maryland limited liability company. The Company is the General Partner of the limited liability partnership. AHIT NNMP is intended to serve as an umbrella partnership real estate investment trust, commonly referred to as an "UPREIT". On August 2, 2016, AHIT NNMP acquired from the Northern New Mexico Properties, LLC, in exchange for a total consideration of approximately $1,334,000 consisting of 500,614 common units in the UPREIT valued at approximately $1,130,000, which carry with them certain option rights into shares of common stock in the Company and the assumption of certain mortgage notes totaling to approximately $204,000.

Note 5 - Investment in Real Est

Note 5 - Investment in Real Estate	9 Months Ended
	Sep. 30, 2016
Banking and Thrift [Abstract]
Note 5 - Investment in Real Estate	5. Investment in Real Estate September 30, 2016 December 31, 2015 Cost of real estate properties $ 12,014,567 $ 9,220,379 Accumulated depreciation (327,728) (223,450) Balance at the end of the period $ 11,686,839 $ 8,996,929

Note 6 - Prepaid Rent Received

Note 6 - Prepaid Rent Received	9 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
Note 6 - Prepaid Rent Received	6. Prepaid Rent Received September 30, 2016 December 31, 2015 Balance, beginning of period $ 39,598 $ 7,450 Prepaid rent recognized as revenue during the period (125,996) (7,450) Prepaid rent received during the period 110,236 39,598 Balance, end of period $ 23,838 $ 39,598

Note 7 - Related party transact

Note 7 - Related party transactions	9 Months Ended
	Sep. 30, 2016
Related Party Transactions [Abstract]
Note 7 - Related party transactions	7. Related party transactions a) b) c) d) e) f) g) h) i) j) k) l)

Note 8 - Notes payable

Note 8 - Notes payable	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Note 8 - Notes payable	8. Notes payable September 30, 2016 $ December 31, 2015 $ 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 197,074 203,343 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 1,634,241 1,651,183 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 959,752 968,000 Promissory note payable on November 27, 2016, bearing interest at 16% per annum, collateralized by a deed of trust on the real estate property purchased with the loan 180,000 180,000 Promissory note payable on July 8, 2017, 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 80,000 Promissory note payable on April 1, 2017, bearing interest at 16% per annum, collateralized by a deed of trust on the real estate properties titled to ARP 300,000 – Promissory note payable on April 1, 2021, bearing interest at 10% per annum, collateralized by a deed of trust on the real estate properties purchased with the loan 314,831 – Mortgage payable on April 1, 2053, bearing interest at 2% per annum, collateralized by a deed of trust on the real estate properties purchased with the loan 245,723 – Promissory note payable on May 1, 2021, bearing interest at 6.07% per annum, collateralized by the real estate properties titled to AHIT Valfre, LLP and ARP Borrower, LLC 1,199,447 – Mortgage payable on April 1, 2028, bearing interest at 2.985% per annum, collateralized by the real estate property purchased with the loan. 125,724 – 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. This note was refinanced on April 18, 2016, as disclosed below. – 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. This note was refinanced on April 18, 2016, as disclosed below. – 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. This note was refinanced on April 18, 2016, as disclosed below. – 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. This note was refinanced on April 18, 2016, as disclosed below. – 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. This note was refinanced on April 18, 2016, as disclosed below. – 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. This note was refinanced on April 18, 2016, as disclosed below. – 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. This note was refinanced on April 18, 2016, as disclosed below. – 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. This note was refinanced on April 18, 2016, as disclosed below. – 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. This note was refinanced on April 18, 2016, as disclosed below. – 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. This note was refinanced on April 18, 2016, as disclosed below. – 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. This note was refinanced on April 18, 2016, as disclosed below. – 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. This note was refinanced on April 18, 2016, as disclosed below. – 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. This note was refinanced on April 18, 2016, as disclosed below. – 82,526 5,236,792 4,271,665 Note payable – related party, payable on June 1, 2026, bearing interest at 4.5% per annum, collateralized by a deed of trust on the real estate properties purchased with the loan 75,809 - 5,312,601 4,271,665 On April 18, 2016, AHIT-Valfre closed financing with FirstKey Mortgage, LLC and entered into a balloon note for $1,203,000, bearing interest at 6.07% per annum and due on May 1, 2012. The note is collateralized by the real estate properties titled to AHIT Valfre. The proceeds from the balloon note were used to pay off mortgages previously assumed by AHIT-Valfre on August 3, 2015. Effective July 8, 2016, the deed of trust and $80,000 promissory note owed by the Company was amended such that the maturity date was extended from July 8, 2016 to July 8, 2017. Commencing July 8, 2016, the promissory note will bear interest at 18% per annum initially and then 12% per annum after four months. The following table schedules the principal payments on the notes payable, including the related party note, for the next five years and thereafter as of September 30, 2016: Year Amount 2016 $ 199,223 2017 458,673 2018 82,610 2019 1,637,538 2020 966,222 thereafter 1,968,335 Total $ 5,312,601 At September 30, 2016, the weighted-average interest rate on short-term borrowings outstanding was 15.43%. The average amount of short-term borrowings during the nine months ended September 30, 2016 was $186,667. The average interest on short-term borrowings during the nine months ended September 30, 2016 was $18,071.

Note 9 - Common Stock

Note 9 - Common Stock	9 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
Note 9 - Common Stock	9. Common Stock a) b) c) d) e) f) g) h) i) j)

Note 10 - Single Family Residen

Note 10 - Single Family Residence Acquisitions	9 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
Note 10 - Single Family Residence Acquisitions	10. Single Family Residence Acquisitions As of September 30, 2016, the Company owns 54 residential properties and 1 commercial property. 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 $ 8,665,880 $ 206,330 California 3 1,650,000 550,000 New Mexico 7 1,333,000 190,429 Texas 3 365,686 121,895 Total and Weighted Average 55 $ 12,014,566 $ 218,447 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.

Note 11 - Commitments and Conti

Note 11 - Commitments and Contingencies	9 Months Ended
	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Note 11 - Commitments and Contingencies	11. Commitments and Contingencies Consulting Agreement On July 15, 2016, the Company executed an Engagement Letter (the “Agreement”) with Tobin & Company Securities, LLC, (“Tobin”) whereby Tobin will provide a variety of financial advisory services for consideration of $20,000. Upon the Company’s securing of investment through capital sources introduced to the Company by Tobin, Tobin will receive an additional fee equal to five percent (5%) of the total debt or equity proceeds received by the Company. The term of the Agreement is six months. Employment Agreements On April 15, 2016, the Company entered into employment agreements with two individuals for a term of one year. The Company agreed to issue an aggregate of 200,000 restricted shares as compensation and weekly monetary compensation that is on par with the value of the services provided by employees. On July 20 and July 26, 2016, the Company issued an aggregate of 200,000 shares to the employees. 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 September 30, 2016 through the end of their term, are as follows: Fiscal Year 2016 $ 151,179 Fiscal Year 2017 237,783 Fiscal Year 2018 28,250 Fiscal Year 2019 8,413 Total $ 425,625 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. a) The Company, American Realty, and Performance Realty were named defendants 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 was a defendant by virtue of its relationship with American Realty. On July 27, 2016, the Company was dismissed from the lawsuit due to the Court’s lack of personal jurisdiction over the Company. The remainder of the case has been stayed. The Company, American Realty, and Performance Realty deny all of the allegations alleged by plaintiff. b) The Company is a defendant in a civil matter pending in Maricopa county, Arizona brought by a current shareholder – Raymond and Winne Yule. The plaintiff was a member in American Realty prior to the Share Exchange Agreement with the Company was effectuated. The plaintiff alleges that American Realty promised a particular real estate investment strategy and were assured a certain rate of return. The plaintiff alleges that American Realty failed in these matters and seeks an unspecified claim for damages. 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.

Note 12 - Subsequent Events

Note 12 - Subsequent Events	9 Months Ended
	Sep. 30, 2016
Subsequent Events [Abstract]
Note 12 - Subsequent Events	12. Subsequent Events a) Subsequent to September 30, 2016, the Company received proceeds of $56,100 pursuant to stock subscription agreements, whereby the Company sold 56,100 shares of common stock of the Company at $1.00 per share. b) On November 8, 2016, the Company entered into a loan agreement for $90,000 which bears interest at 12% per annum, matures on Nov 8, 2017 and collateralized by one of ARP’s properties. c) On November 8, 2016, the Company issued 300,026 shares of common stock upon the exercise of option to convert all the outstanding 300,026 units in the AHIT-Valfre, LLP into the Company’s common stock. d) On November 8, 2016, the Company issued 3,896 shares of common stock with a fair value of $6,819 to the limited partner of AHIT-Valfre, LLP pursuant to the AHIT-Valfre UPREIT agreement to reimburse for the escrows maintained under the AHIT-Valfre mortgages prior to the assumptions of the mortgages and escrow balance by AHIT-Valfre on August 3, 2015.

Note 2 - Summary of Significa18

Note 2 - Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Basis of Presentation and Principles of Consolidation	a) Basis of Presentation and Principles of Consolidation These unaudited consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“US”) and the rules of the Securities and Exchange Commission and should be read in conjunction with the audited financial statements and notes for the years ended December 31, 2015 and 2014 contained in the Company’s Form 10-K filed on March 30, 2016. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary to present fairly the Company's financial position, results of operations and cash flows for the periods shown have been reflected herein. The results of operations for such periods are not necessarily indicative of the results expected for a full year or for any future period. Notes to the financial statements which would substantially duplicate the disclosure contained in the audited financial statements for the years ended December 31, 2015 and 2014 as reported in the Company's Form 10-K have been omitted. These consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries ARP, and its subsidiary special purpose entities, ARP Pledgor, LLC, ARP Borrower, LLC, ARP Pledgor II, LLC, APR Borrower II, LLC, AHIT Valfre, LLP, AHIT Valfre GP, LLC and and AHIT NNMP, LLP. All significant intercompany transaction and balances have been eliminated.
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.
Fair Value of Financial Instruments	c) 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 3 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	d) Non-controlling Interest Limited partnership units in AHIT Valfre and AHIT NNMP 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 and AHIT NNMP 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 and AHIT NNMP for cash, based upon the fair value of an equivalent number of shares of our common stock at the time of redemption. As of September 30, 2016, there were 300,026 limited partnership units outstanding in AHIT Valfre and 500,614 limited partnership units outstanding in AHIT NNMP.
Recent Accounting Pronouncements	e) Recent Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which supersedes ASC 840, Leases. This ASU is based on the principle that entities should recognize assets and liabilities arising from leases. The ASU does not significantly change the lessees’ recognition, measurement and presentation of expenses and cash flows from the previous accounting standard. Leases are classified as finance or operating. The ASU’s primary change is the requirement for entities to recognize a lease liability for payments and a right of use asset representing the right to use the leased asset during the term on operating lease arrangements. Lessees are permitted to make an accounting policy election to not recognize the asset and liability for leases with a term of twelve months or less. Lessors’ accounting under the ASC is largely unchanged from the previous accounting standard. In addition, the ASU expands the disclosure requirements of lease arrangements. Lessees and lessors will use a modified retrospective transition approach, which includes a number of practical expedients. The effective date will be the first quarter of fiscal year 2019 with early adoption permitted. Management continues to assess the overall impact the adoption of ASU 2016-02 will have on the Company’s financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation—Stock Compensation, Improvements to Employee Share-Based Payment Accounting (Topic 718). This update is intended to provide simplification of the accounting for share based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The effective date will be the first quarter of fiscal year 2017 with early adoption permitted. Management continues to assess the overall impact the adoption of ASU 2016-09 will have on the Company’s financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force). ASU 2016-15 reduces diversity in practice in how certain transactions are classified in the statement of cash flows. The effective date will be the first quarter of fiscal year 2018 with early adoption permitted. Management continues to assess the overall impact the adoption of ASU 2016-15 will have on the Company’s financial statements. 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.

Note 5 - Investment in Real E19

Note 5 - Investment in Real Estate (Tables)	9 Months Ended
	Sep. 30, 2016
Banking and Thrift [Abstract]
Real Estate and Accumulated Depreciation	September 30, 2016 December 31, 2015 Cost of real estate properties $ 12,014,567 $ 9,220,379 Accumulated depreciation (327,728) (223,450) Balance at the end of the period $ 11,686,839 $ 8,996,929

Note 6 - Prepaid Rent Received

Note 6 - Prepaid Rent Received (Tables)	9 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
Prepaid Rent	September 30, 2016 December 31, 2015 Balance, beginning of period $ 39,598 $ 7,450 Prepaid rent recognized as revenue during the period (125,996) (7,450) Prepaid rent received during the period 110,236 39,598 Balance, end of period $ 23,838 $ 39,598

Note 8 - Notes payable (Tables)

Note 8 - Notes payable (Tables)	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Notes Payable	September 30, 2016 $ December 31, 2015 $ 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 197,074 203,343 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 1,634,241 1,651,183 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 959,752 968,000 Promissory note payable on November 27, 2016, bearing interest at 16% per annum, collateralized by a deed of trust on the real estate property purchased with the loan 180,000 180,000 Promissory note payable on July 8, 2017, 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 80,000 Promissory note payable on April 1, 2017, bearing interest at 16% per annum, collateralized by a deed of trust on the real estate properties titled to ARP 300,000 – Promissory note payable on April 1, 2021, bearing interest at 10% per annum, collateralized by a deed of trust on the real estate properties purchased with the loan 314,831 – Mortgage payable on April 1, 2053, bearing interest at 2% per annum, collateralized by a deed of trust on the real estate properties purchased with the loan 245,723 – Promissory note payable on May 1, 2021, bearing interest at 6.07% per annum, collateralized by the real estate properties titled to AHIT Valfre, LLP and ARP Borrower, LLC 1,199,447 – Mortgage payable on April 1, 2028, bearing interest at 2.985% per annum, collateralized by the real estate property purchased with the loan. 125,724 – 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. This note was refinanced on April 18, 2016, as disclosed below. – 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. This note was refinanced on April 18, 2016, as disclosed below. – 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. This note was refinanced on April 18, 2016, as disclosed below. – 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. This note was refinanced on April 18, 2016, as disclosed below. – 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. This note was refinanced on April 18, 2016, as disclosed below. – 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. This note was refinanced on April 18, 2016, as disclosed below. – 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. This note was refinanced on April 18, 2016, as disclosed below. – 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. This note was refinanced on April 18, 2016, as disclosed below. – 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. This note was refinanced on April 18, 2016, as disclosed below. – 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. This note was refinanced on April 18, 2016, as disclosed below. – 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. This note was refinanced on April 18, 2016, as disclosed below. – 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. This note was refinanced on April 18, 2016, as disclosed below. – 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. This note was refinanced on April 18, 2016, as disclosed below. – 82,526 5,236,792 4,271,665 Note payable – related party, payable on June 1, 2026, bearing interest at 4.5% per annum, collateralized by a deed of trust on the real estate properties purchased with the loan 75,809 - 5,312,601 4,271,665 Year Amount 2016 $ 199,223 2017 458,673 2018 82,610 2019 1,637,538 2020 966,222 thereafter 1,968,335 Total $ 5,312,601

Note 5 - Investment in Real E22

Note 5 - Investment in Real Estate - Real Estate and Accumulated Depreciation (Details) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Banking and Thrift [Abstract]
Cost of real estate properties	$ 12,014,567	$ 9,220,379
Accumulated depreciation	327,728	223,450
Balance at the end of the period	$ 11,686,839	$ 8,996,929

Note 1 - Nature of Operations (

Note 1 - Nature of Operations (Details Narrative)	Sep. 30, 2016Integer
Number of Properties Held	55

Note 2 - Summary of Significa24

Note 2 - Summary of Significant Accounting Policies (Details Narrative)	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Non-Controlling Interest, Description	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. As of June 30, 2016, there were 300,026 limited partnership units outstanding in AHIT Valfre.

Note 3 - Going Concern (Details

Note 3 - Going Concern (Details Narrative) - USD ($)	6 Months Ended	14 Months Ended
	Jun. 30, 2016	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Going Concern, Net Income Loss	$ 2,742,485
Going Concern, Description		The Company has accumulated losses of $10,737,132 since inception.

Note 4 - Formation of AHIT-NN26

Note 4 - Formation of AHIT-NNMP (Details Narrative)	9 Months Ended
	Sep. 30, 2016USD ($)shares
Business Combinations [Abstract]
Description of Business Combination	On July 13, 2016, the Company entered into the Master UPREIT Formation Agreement set forth in Section 1, above, resulting in the formation of AHIT NNMP, LLP, a Maryland limited liability company. The Company is the General Partner of the limited liability partnership. AHIT NNMP is intended to serve as an umbrella partnership real estate investment trust, commonly referred to as an "UPREIT". On August 2, 2016, AHIT NNMP acquired from the Northern New Mexico Properties, LLC, six single family residences, four apartments and sixteen mobile homes spaces located in New Mexico in exchange for a total consideration of approximately $1,334,000 consisting of 500,614 common units in the UPREIT valued at approximately $1,130,000, which carry with them certain option rights into shares of common stock in the Company and the assumption of certain mortgage notes totaling to approximately $204,000.
Business Combination, Consideration Transferred	$ 1,334,000
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned (Common Units)	$ 1,130,000
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | shares	500,614
Business Combination, Consideration Transferred, Liabilities Incurred (Assumption of Mortgages)	$ 204,000