Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 04, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2022 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 000-55038 | |
Entity Registrant Name | LiquidValue Development Inc. | |
Entity Central Index Key | 0001503658 | |
Entity Tax Identification Number | 27-1467607 | |
Entity Incorporation, State or Country Code | NV | |
Entity Address, Address Line One | 4800 Montgomery Lane | |
Entity Address, Address Line Two | Suite 210 | |
Entity Address, City or Town | Bethesda | |
Entity Address, State or Province | MD | |
Entity Address, Postal Zip Code | 20814 | |
City Area Code | 301 | |
Local Phone Number | 971-3940 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 704,043,324 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Investments in Single-family Residential Properties | ||
Land | $ 9,745,621 | $ 9,470,950 |
Building and Improvements | 17,000,186 | 15,469,814 |
Investments in Single-family Residential Properties | 26,745,807 | 24,940,764 |
Less: Accumulated Depreciation | (595,447) | (120,511) |
Investments in Single-family Residential Properties, Net | 26,150,360 | 24,820,253 |
Construction in Progress | 12,599,686 | 6,724,674 |
Land Held for Development | 7,943,126 | 8,068,624 |
Other Properties | 414,155 | 421,382 |
Total | 47,107,327 | 40,034,933 |
Cash | 1,986,016 | 3,055,745 |
Restricted Cash | 309,145 | 4,399,984 |
Accounts Receivable | 74,527 | 47,303 |
Other Receivable | 136,350 | 136,350 |
Related Party Receivable | 16,249 | 26,565 |
Prepaid Expenses | 92,277 | 258,700 |
Fixed Assets, Net | 5,565 | 4,945 |
Deposits | 23,603 | 23,603 |
Operating Lease Right-Of-Use Asset | 129,373 | 191,979 |
Total Assets | 49,880,432 | 48,180,107 |
Liabilities: | ||
Accounts Payable and Accrued Expenses | 3,007,323 | 2,832,340 |
Accrued Interest - Related Parties | 1,082,813 | 228,557 |
Builder Deposits | 31,553 | |
Operating Lease Liability | 132,694 | 199,483 |
Note Payable, net of discount | 68,502 | |
Note Payable - Related Parties | 22,533,055 | 19,918,382 |
Total Liabilities | 26,755,885 | 23,278,817 |
Stockholders’ Equity: | ||
Common Stock, at par $0.001, 1,000,000,000 shares authorized and 704,043,324 issued, and outstanding at September 30, 2022 and December 31, 2021 | 704,043 | 704,043 |
Additional Paid in Capital | 32,542,720 | 32,542,720 |
Accumulated Deficit | (10,198,816) | (8,397,009) |
Total LiquidValue Development Inc. Stockholders’ Equity | 23,047,947 | 24,849,754 |
Non-controlling Interests | 76,600 | 51,536 |
Total Stockholders’ Equity | 23,124,547 | 24,901,290 |
Total Liabilities and Stockholders’ Equity | $ 49,880,432 | $ 48,180,107 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Common stock, Par Value | $ 0.001 | $ 0.001 |
Common stock, Authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, Issued | 704,043,324 | 704,043,324 |
Common stock, Outstanding | 704,043,324 | 704,043,324 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenue | ||||
Total Revenue | $ 579,758 | $ 3,547,396 | $ 1,870,882 | $ 12,026,069 |
Operating Expenses | ||||
Cost of Revenue | 416,181 | 2,235,305 | 1,716,523 | 8,709,404 |
General and Administrative | 413,496 | 360,955 | 1,270,983 | 1,173,751 |
Total Operating Expenses | 829,677 | 2,596,260 | 2,987,506 | 9,883,155 |
Loss (Income) From Operations | (249,919) | 951,136 | (1,116,624) | 2,142,914 |
Other Income & Expense | ||||
Interest Expense, net | (260,074) | (27,347) | (728,802) | (60,409) |
Other Income | 181 | 68,683 | 4,142 | |
Other Expense | (1,930) | |||
Total Other Expense | (259,893) | (29,277) | (660,119) | (56,267) |
Net (Loss) Income Before Income Taxes | (509,812) | 921,859 | (1,776,743) | 2,086,647 |
Income Tax Expense | ||||
Net (Loss) Income | (509,812) | 921,859 | (1,776,743) | 2,086,647 |
Net (Loss) Income Attributable to Non-controlling Interests | (425) | (850) | 25,064 | 302,684 |
Net (Loss) Income Attributable to Common Stockholders | $ (509,387) | $ 922,709 | $ (1,801,807) | $ 1,783,963 |
Net (Loss) Income Per Share - Basic and Diluted | $ 0 | $ 0 | $ 0 | $ 0 |
Weighted Average Common Shares Outstanding - Basic and Diluted | 704,043,324 | 704,043,324 | 704,043,324 | 704,043,324 |
Rental [Member] | ||||
Revenue | ||||
Total Revenue | $ 569,791 | $ 133,302 | $ 1,206,273 | $ 155,249 |
Property [Member] | ||||
Revenue | ||||
Total Revenue | $ 9,967 | $ 3,414,094 | $ 664,609 | $ 11,870,820 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Stockholders' Equity - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total Liquid Value Development Inc Stockholders Equity [Member] | Noncontrolling Interest [Member] | Total |
Balance at Dec. 31, 2020 | $ 704,043 | $ 32,542,720 | $ (8,632,867) | $ 24,613,896 | $ 1,914,791 | $ 26,528,687 |
Balance, shares at Dec. 31, 2020 | 704,043,324 | |||||
Net Income (Loss) | (393,474) | (393,474) | 5,919 | (387,555) | ||
Distribution to Non-Controlling Stockholder | (82,250) | (82,250) | ||||
Balance at Mar. 31, 2021 | $ 704,043 | 32,542,720 | (9,026,341) | 24,220,422 | 1,838,460 | 26,058,882 |
Balance, shares at Mar. 31, 2021 | 704,043,324 | |||||
Balance at Dec. 31, 2020 | $ 704,043 | 32,542,720 | (8,632,867) | 24,613,896 | 1,914,791 | 26,528,687 |
Balance, shares at Dec. 31, 2020 | 704,043,324 | |||||
Net Income (Loss) | 2,086,647 | |||||
Balance at Sep. 30, 2021 | $ 704,043 | 32,542,720 | (6,848,904) | 26,397,859 | 819,225 | 27,217,084 |
Balance, shares at Sep. 30, 2021 | 704,043,324 | |||||
Balance at Mar. 31, 2021 | $ 704,043 | 32,542,720 | (9,026,341) | 24,220,422 | 1,838,460 | 26,058,882 |
Balance, shares at Mar. 31, 2021 | 704,043,324 | |||||
Net Income (Loss) | 1,254,728 | 1,254,728 | 297,615 | 1,552,343 | ||
Distribution to Non-Controlling Stockholder | (1,069,250) | (1,069,250) | ||||
Balance at Jun. 30, 2021 | $ 704,043 | 32,542,720 | (7,771,613) | 25,475,150 | 1,066,825 | 26,541,975 |
Balance, shares at Jun. 30, 2021 | 704,043,324 | |||||
Net Income (Loss) | 922,709 | 922,709 | (850) | 921,859 | ||
Distribution to Non-Controlling Stockholder | (246,750) | (246,750) | ||||
Balance at Sep. 30, 2021 | $ 704,043 | 32,542,720 | (6,848,904) | 26,397,859 | 819,225 | 27,217,084 |
Balance, shares at Sep. 30, 2021 | 704,043,324 | |||||
Balance at Dec. 31, 2021 | $ 704,043 | 32,542,720 | (8,397,009) | 24,849,754 | 51,536 | 24,901,290 |
Balance, shares at Dec. 31, 2021 | 704,043,324 | |||||
Net Income (Loss) | (505,588) | (505,588) | 20,992 | (484,596) | ||
Balance at Mar. 31, 2022 | $ 704,043 | 32,542,720 | (8,902,597) | 24,344,166 | 72,528 | 24,416,694 |
Balance, shares at Mar. 31, 2022 | 704,043,324 | |||||
Balance at Dec. 31, 2021 | $ 704,043 | 32,542,720 | (8,397,009) | 24,849,754 | 51,536 | 24,901,290 |
Balance, shares at Dec. 31, 2021 | 704,043,324 | |||||
Net Income (Loss) | (1,776,743) | |||||
Balance at Sep. 30, 2022 | $ 704,043 | 32,542,720 | (10,198,816) | 23,047,947 | 76,600 | 23,124,547 |
Balance, shares at Sep. 30, 2022 | 704,043,324 | |||||
Balance at Mar. 31, 2022 | $ 704,043 | 32,542,720 | (8,902,597) | 24,344,166 | 72,528 | 24,416,694 |
Balance, shares at Mar. 31, 2022 | 704,043,324 | |||||
Net Income (Loss) | (786,832) | (786,832) | 4,497 | (782,335) | ||
Balance at Jun. 30, 2022 | $ 704,043 | 32,542,720 | (9,689,429) | 23,557,334 | 77,025 | 23,634,359 |
Balance, shares at Jun. 30, 2022 | 704,043,324 | |||||
Net Income (Loss) | (509,387) | (509,387) | (425) | (509,812) | ||
Balance at Sep. 30, 2022 | $ 704,043 | $ 32,542,720 | $ (10,198,816) | $ 23,047,947 | $ 76,600 | $ 23,124,547 |
Balance, shares at Sep. 30, 2022 | 704,043,324 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Cash Flows from Operating Activities | |||||||
Net (Loss) Income | $ (509,812) | $ (484,596) | $ 921,859 | $ (387,555) | $ (1,776,743) | $ 2,086,647 | |
Adjustments to Reconcile Net (Loss) Income to Net Cash (Used in) Provided by Operating Activities: | |||||||
Depreciation | 475,618 | 55,905 | |||||
Amortization of Right -Of- Use Asset | 41,270 | 62,578 | |||||
PPP Loan Forgiveness | (68,502) | ||||||
Amortization of Debt Discount | 42,907 | ||||||
Changes in Operating Assets and Liabilities | |||||||
Real Estate Development | (5,742,287) | 5,342,470 | |||||
Accounts Receivable | (27,224) | (252,558) | |||||
Related Party Receivable | 10,316 | (36,811) | |||||
Prepaid Expenses | 187,759 | (348,032) | |||||
Other Receivable | (49,514) | ||||||
Accounts Payable and Accrued Expenses | 174,981 | 64,011 | |||||
Accrued Interest - Related Parties | 728,930 | 320,986 | |||||
Operating Lease Liability | (66,789) | (43,084) | |||||
Builder Deposits | (31,553) | (1,017,400) | |||||
Net Cash (Used in) Provided by Operating Activities | (6,094,224) | 6,228,105 | |||||
Cash Flows from Investing Activities | |||||||
Purchase of Fixed Assets | (1,303) | (3,973) | |||||
Purchase of Real Estate Properties | (722,817) | (11,081,491) | |||||
Real Estate Improvements | (1,082,225) | ||||||
Net Cash Used in Investing Activities | (1,806,345) | (11,085,464) | |||||
Cash Flows from Financing Activities | |||||||
Borrowing from PPP | 68,502 | ||||||
Repayment to Note Payable | (690,035) | ||||||
Distribution to Non-controlling Interest Shareholders | (1,398,250) | ||||||
Borrowing from Notes Payable - Related Parties | 3,740,000 | 6,684,282 | |||||
Repayment to Notes Payable - Related Parties | (1,000,000) | ||||||
Net Cash Provided by Financing Activities | 2,740,000 | 4,664,499 | |||||
Net Decrease in Cash and Restricted Cash | (5,160,568) | (192,860) | |||||
Cash and Restricted Cash - Beginning of Period | $ 7,455,729 | $ 8,104,247 | 7,455,729 | 8,104,247 | $ 8,104,247 | ||
Cash and Restricted Cash - End of Period | 2,295,161 | 7,911,387 | 2,295,161 | 7,911,387 | 7,455,729 | ||
Cash | 1,986,016 | 3,511,515 | 1,986,016 | 3,511,515 | 3,055,745 | ||
Restricted Cash | 309,145 | 4,399,872 | 309,145 | 4,399,872 | $ 4,399,984 | ||
Total Cash and Restricted Cash | $ 2,295,161 | $ 7,911,387 | 2,295,161 | 7,911,387 | |||
Supplementary Cash Flow Information | |||||||
Cash Paid for Interest | 10,766 | ||||||
Cash Paid for Taxes | |||||||
Supplemental Disclosure of Non-Cash Investing and Financing Activities | |||||||
Initial Recognition of Operating Lease Right-Of-Use Asset and Liability | $ 256,928 |
NATURE OF OPERATIONS AND SUMMAR
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations LiquidValue Development Inc. (the “Company”), formerly known as SeD Intelligent Home Inc. and Homeownusa, was incorporated in the State of Nevada on December 10, 2009. On December 29, 2017, the Company, acquired Alset EHome Inc. (“Alset EHome”) by reverse merger. Alset EHome, a Delaware corporation, was formed on February 24, 2015. Alset EHome is principally engaged in developing, selling, managing, and leasing residential properties in the United States in current stage and may expand from residential properties to other property types, including but not limited to commercial and retail properties. The Company is 99.99 The Company’s current operations concentrate around two types of projects, land development and house rental business. Both of them are included in our only reporting segment – real state. In determination of segments, the Company, together with its chief operating decision maker, who is also our CEO, considers factors that include the nature of business activities, allocation of resources and management structure. Principles of Consolidation The condensed consolidated financial statements include all accounts of the following entities as of the reporting period ending dates and for the reporting periods as follows: SCHEDULE OF ACCOUNTS OF ENTITIES Name of consolidated subsidiary State or other jurisdiction of incorporation or organization Date of incorporation or formation Attributable interest Alset EHome Inc. Delaware February 24, 2015 100 % SeD USA, LLC Delaware August 20, 2014 100 % 150 Black Oak GP, Inc. Texas January 23, 2014 100 % SeD Development USA, Inc. Delaware March 13, 2014 100 % 150 CCM Black Oak Ltd. Texas March 17, 2014 100 % SeD Ballenger, LLC Delaware July 7, 2015 100 % SeD Maryland Development, LLC Delaware October 16, 2014 83.55 % SeD Development Management, LLC Delaware June 18, 2015 85 % SeD Builder, LLC Delaware October 21, 2015 100 % SeD Texas Home, LLC Delaware June 16, 2015 100 % SeD REIT Inc. Maryland August 20, 2019 100 % Alset Solar Inc. Texas September 21, 2020 80 % American Home REIT Inc. Maryland September 30, 2020 100 % AHR Texas Two, LLC Delaware September 28, 2021 100 % AHR Black Oak One, LLC Delaware September 29, 2021 100 % AHR Texas Three, LLC Delaware December 21, 2021 100 % Robotic gHome Inc. Texas August 25, 2022 90 % All intercompany balances and transactions have been eliminated. Non–controlling interest represents the minority equity investment in the Company’s subsidiaries, plus the minority investors’ share of the net operating results and other components of equity relating to the non–controlling interest. As of September 30, 2022 and December 31, 2021, the aggregate non-controlling interest in Alset EHome Inc. was $ 76,600 51,536 Basis of Presentation The Company’s condensed consolidated financial statements have been prepared in accordance with the accounting principles generally accepted in the United States of America (“US GAAP”). The unaudited financial information furnished herein reflects all adjustments, consisting solely of normal recurring items, which in the opinion of management are necessary to fairly state the financial position of the Company and the results of its operations for the periods presented. This report should be read in conjunction with the Company’s consolidated financial statements and notes thereto included in the Company’s Form 10-K for the year ended December 31, 2021 filed on March 14, 2022. The Company assumes that the users of the interim financial information herein have read or have access to the audited consolidated financial statements for the preceding fiscal year and the adequacy of additional disclosure needed for a fair presentation may be determined in that context. The consolidated balance sheet at December 31, 2021 was derived from the audited consolidated financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America. The results of operations for the interim periods presented are not necessarily indicative of results for the year ending December 31, 2022. Use of Estimates The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts in the condensed consolidated financial statements. The Company’s significant estimates are made in connection with the valuation of real estate. Actual results could differ from those estimates. Earnings (Loss) per Share Basic income (loss) per share is computed by dividing the net income (loss) attributable to the common stockholders by weighted average number of shares of common stock outstanding during the period. Fully diluted loss per share is computed similarly to basic loss per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. There were no potentially dilutive financial instruments issued or outstanding for the periods ended September 30, 2022 or September 30, 2021. Fair Value of Financial Instruments For purpose of this disclosure, the fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced sale or liquidation. The carrying amount of the Company’s short-term financial instruments approximates fair value due to the relatively short period to maturity for these instruments. Cash and Cash Equivalents The Company considers all highly liquid investments with a maturity of three months or less at the date of acquisition to be cash equivalents. There were no Restricted Cash As a condition to the loan agreement with the Manufacturers and Traders Trust Company (“M&T Bank”), the Company was required to maintain a minimum of $ 2,600,000 2,300,000 300,000 309,145 4,399,984 Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable include all receivables from buyers, contractors and all other parties. The Company records an allowance for doubtful accounts based on a review of the outstanding receivables, historical collection information and economic conditions. No allowance was necessary at either September 30, 2022 or December 31, 2021. Property and Equipment and Depreciation Property and equipment are recorded at cost, less accumulated depreciation. Expenditures for major additions and betterments that extend the useful life or functionality are capitalized. Maintenance and repairs are charged to operations as incurred. Depreciation is computed by the straight-line method (after taking into account their respective estimated residual values) over the estimated useful lives, which are 3 Real Estate Assets ● Land Development Assets Real estate assets are recorded at cost, except when real estate assets are acquired that meet the definition of a business combination in accordance with Financial Accounting Standards Board (“FASB”) ASC 805, “Business Combinations,” which acquired assets are recorded at fair value. Interest, property taxes, insurance and other incremental costs (including salaries) directly related to a project are capitalized during the construction period of major facilities and land improvements. The capitalization period begins when activities to develop the parcel commence and ends when the asset constructed is completed. The capitalized costs are recorded as part of the asset to which they relate and are reduced when lots are sold. In addition to our annual assessment of potential triggering events in accordance with ASC 360, the Company applies a fair-value based impairment test to the net book value assets on an annual basis and on an interim basis, if certain events or circumstances indicate that an impairment loss may have occurred. The Company did not record impairment on any of its projects during the nine months ended on September 30, 2022, nor for the nine months ended September 30, 2021. ● Investments in Single-Family Residential Properties The Company accounts for its investments in single-family residential properties as asset acquisitions and records these acquisitions at their purchase price. The purchase price is allocated between land, building, improvements and existing leases based upon their relative fair values at the date of acquisition. The purchase price for purposes of this allocation is inclusive of acquisition costs which typically include legal fees, title fees, property inspection and valuation fees, as well as other closing costs. Building improvements and buildings are depreciated over estimated useful lives of approximately 10 27.5 The Company assesses its investments in single-family residential properties for impairment whenever events or changes in business circumstances indicate that carrying amounts of the assets may not be fully recoverable. When such events occur, management determines whether there has been impairment by comparing the asset’s carrying value with its fair value. Should impairment exist, the asset is written down to its estimated fair value. The Company did not recognize any impairment losses during the nine months ended on September 30, 2022. Revenue Recognition ● Land Development Revenue Recognition ASC 606, Revenue from Contracts with Customers, establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods or services to customers. The Company adopted this new standard on January 1, 2018 under the modified retrospective method. The adoption of this new standard did not have a material effect on our financial statements. In accordance with ASC 606, revenue is recognized when a customer obtains control of promised goods or services. The amount of revenue recognized reflects the consideration to which we expect to be entitled to receive in exchange for these goods or services. The provisions of ASC 606 include a five-step process by which we determine revenue recognition, depicting the transfer of goods or services to customers in amounts reflecting the payment to which we expect to be entitled in exchange for those goods or services. ASC 606 requires us to apply the following steps: (1) identify the contract with the customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, we satisfy the performance obligation. A detailed breakdown of the five-step process for the revenue recognition of our Ballenger project, which were essentially all of the revenue of the Company in 2022 and 2021, is as follows: a. Identify the contract with a customer. In the event of a sale the Company has signed agreements with the builders for developing the raw land ready to build lots. The contract has agreed upon prices, timelines, and specifications for what is to be provided. b. Identify the performance obligations in the contract. Performance obligations of the Company include delivering developed lots to the customer, which are required to meet certain specifications that are outlined in the contract. The customer inspects all lots prior to accepting title to ensure all specifications are met. c. Determine the transaction price. The transaction price is fixed and specified in the contract. Any subsequent change orders or price changes are required to be approved by both parties. d. Allocate the transaction price to performance obligations in the contract. Each lot or a group of lots is considered to be a separate performance obligation, for which the specified price in the contract is allocated to. e. Recognize revenue when (or as) the entity satisfies a performance obligation. In the event of a sale the builders do the inspections to make sure all conditions/requirements are met before taking title of lots. The Company recognizes revenue when title is transferred. The Company does not have further performance obligations once title is transferred. ● Rental Revenue Recognition The Company leases real estate properties to its tenants under leases that are predominately classified as operating leases, in accordance with ASC 842, Leases (“ASC 842”). Real estate rental revenue is comprised of minimum base rent and revenue from the collection of lease termination fees. Rent from tenants is recorded in accordance with the terms of each lease agreement on a straight-line basis over the initial term of the lease. Rental revenue recognition begins when the tenant controls the space and continues through the term of the related lease. Generally, at the end of the lease term, the Company provides the tenant with a one-year renewal option, including mostly the same terms and conditions provided under the initial lease term, subject to rent increases. The Company defers rental revenue related to lease payments received from tenants in advance of their due dates. These amounts are presented within deferred revenues and other payables on the Company’s condensed consolidated balance sheets. Rental revenue is subject to an evaluation for collectability on several factors, including payment history, the financial strength of the tenant and any guarantors, historical operations and operating trends of the property, and current economic conditions. If our evaluation of these factors indicates that it is not probable that we will recover substantially all of the receivable, rental revenue is limited to the lesser of the rental revenue that would be recognized on a straight-line basis (as applicable) or the lease payments that have been collected from the lessee. Differences between rental revenue recognized and amounts contractually due under the lease agreements are credited or charged to straight-line rent receivable or straight-line rent liability, as applicable. For the nine months ended September 30, 2022, the Company did not recognize any deferred revenue and collected all rents due. Sale of the Front Foot Benefit Assessments We have established a front foot benefit (“FFB”) assessment on all of the NVR lots. This is a 30-year annual assessment allowed in Frederick County which requires homeowners to reimburse the developer for the costs of installing public water and sewer to the lots. These assessments become effective as homes are settled, at which time we can sell the collection rights to investors who will pay an upfront lump sum, enabling us to more quickly realize the revenue. The selling prices range from $ 3,000 4,500 1 During the three months ended on September 30, 2022 and 2021, we recognized revenue of $ 9,968 182,813 126,055 431,458 Contract Assets and Contract Liabilities Based on our contracts, we invoice customers once our performance obligations have been satisfied, at which point payment is unconditional. Accordingly, our contracts do not give rise to contract assets or liabilities under ASC 606. Accounts receivable are recorded when the right to consideration becomes unconditional. We disclose receivables from contracts with customers separately on the balance sheets. Cost of Revenue ● Cost of Real Estate Sale All of the costs of real estate sales are from our land development business. Land acquisition costs are allocated to each lot based on the area method, the size of the lot comparing to the total size of all lots in the project. Development costs and capitalized interest are allocated to lots sold based on the total expected development and interest costs of the completed project and allocating a percentage of those costs based on the selling price of the sold lot compared to the expected sales values of all lots in the project. If allocation of development costs and capitalized interest based on the projection and relative expected sales value is impracticable, those costs could also be allocated based on area method, the size of the lot comparing to the total size of all lots in the project. ● Cost of Rental Revenue Cost of rental revenue consists primarily of the costs associated with management and leasing fees to our management company, repairs and maintenance, depreciation and other related administrative costs. Utility expenses are paid directly by tenants. Recent Accounting Pronouncements In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of Reference Rate Reform on Financial Reporting In October 2021, the FASB issued ASU No. 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers.” ASU 2021-08 requires the company acquiring contract assets and contract liabilities obtained in a business combination to recognize and measure them in accordance with ASC 606, “Revenue from Contracts with Customers”. At the acquisition date, the company acquiring the business should record related revenue, as if it had originated the contract. Before the update such amounts were recognized by the acquiring company at fair value. The amendments in this Update are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted, including in interim periods, for any financial statements that have not yet been issued. The Company plans to adopt these requirements prospectively, effective on the first day of year 2023. |
CONCENTRATION OF CREDIT RISK
CONCENTRATION OF CREDIT RISK | 9 Months Ended |
Sep. 30, 2022 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATION OF CREDIT RISK | 2. CONCENTRATION OF CREDIT RISK The group maintains cash balances at various financial institutions. These balances are secured by the Federal Deposit Insurance Corporation. At times, these balances may exceed the federal insurance limits. At September 30, 2022 and December 31, 2021, uninsured cash and restricted cash balances were $ 1,215,224 6,137,775 |
BUILDER DEPOSITS
BUILDER DEPOSITS | 9 Months Ended |
Sep. 30, 2022 | |
Disclosure Builder Deposits Abstract | |
BUILDER DEPOSITS | 3. BUILDER DEPOSITS In November 2015, SeD Maryland Development, LLC (“SeD Maryland”) entered into lot purchase agreements with NVR, Inc. (“NVR”) relating to the sale of single-family home and townhome lots to NVR in the Ballenger Run Project. The purchase agreements were amended three times thereafter. Based on the agreements, NVR is entitled to purchase 479 64 3% As part of the agreements, NVR was required to give a deposit in the amount of $ 5,600,000 9.9% 100,000 220,000 0 31,553 |
NOTES PAYABLE
NOTES PAYABLE | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE | 4. NOTES PAYABLE M&T Bank Loans On April 17, 2019, SeD Maryland Development LLC entered into a Development Loan Agreement with Manufacturers and Traders Trust Company (“M&T Bank”) in the principal amount not to exceed at any one time outstanding the sum of $ 8,000,000 18,500,000 LIBOR plus 375 basis points. 900,000 1.5% 2,600,000 0 2,300,000 300,000 On June 18, 2020, Alset EHome Inc. entered into a Loan Agreement with M&T Bank. Pursuant to the Loan Agreement, M&T Bank provided a non-revolving loan to Alset EHome Inc. in an aggregate amount of up to $ 2,990,000 LIBOR plus 375 basis points. July 1, 2022 664,810 25,225 42,907 Paycheck Protection Program Loan On February 11, 2021, the Company entered into a five year note with M&T Bank with a principal amount of $ 68,502 1.00% The PPP Term Note is unsecured and guaranteed by the United States Small Business Administration. The Company applied to M&T Bank for forgiveness of the PPP Term Note, with the amount which may be forgiven equal to at least 60% |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 5. RELATED PARTY TRANSACTIONS Loan from SeD Home Limited The Company receives advances from SeD Home Limited (an affiliate of Alset International) to fund development and operation costs. The advances bear interest of 10% 0 0 228,557 228,557 Loan to/from SeD Intelligent Home Inc. (f.k.a. SeD Home International Inc.) The Company receives advances from or loans funds to SeD Intelligent Home, the owner of 99.99% 18% 5% 22,533,055 854,256 19,891,734 144,588 Management Fees MacKenzie Equity Partners, LLC, an entity owned by a Charles MacKenzie, a Director of the Company, has had a consulting agreement with a majority-owned subsidiary of the Company since 2015. Per the terms of the agreement, as amended on January 1, 2018, the Company’s subsidiary paid a monthly fee of $ 20,000 25,000 In addition, MacKenzie Equity Partners will be paid certain bonuses, including (i) a sum of $50,000 on June 30, 2022; (ii) a sum of $50,000 upon the successful financing of 100 homes owned by American Housing REIT Inc. with an entity not affiliated with SeD Development Management LLC (a subsidiary of the Company); and (iii) a sum of $50,000 upon the successful leasing of 30 homes in the Alset of Black Oak development. The Company incurred expenses of $ 60,000 240,000 75,000 275,000 120,000 50,000 25,000 80,000 On December 29, 2020, the Company entered into a Management Services Agreement (the “Management Services Agreement”) with Alset International, pursuant to which the Company paid Alset International a one-time payment of $ 360,000 30,000 90,000 270,000 720,000 Advances to Alset Inc. The Company pays some operating expenses for Alset Inc., a related party under the common control of Chan Heng Fai, the CEO of the Company. The advances are interest free with no set repayment terms. On September 30, 2022 and December 31, 2021, the balance of these advances was $ 16,249 26,566 |
STOCKHOLDERS_ EQUITY
STOCKHOLDERS’ EQUITY | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
STOCKHOLDERS’ EQUITY | 6. STOCKHOLDERS’ EQUITY Cash Dividend Distributions From January to September 2021, the Board of Managers of SeD Maryland Development LLC (the 83.55 8,500,000 1,398,250 The Company did not authorize any distribution during nine months ended September 30, 2022. |
SINGLE FAMILY RESIDENTIAL PROPE
SINGLE FAMILY RESIDENTIAL PROPERTIES | 9 Months Ended |
Sep. 30, 2022 | |
Extractive Industries [Abstract] | |
SINGLE FAMILY RESIDENTIAL PROPERTIES | 7. SINGLE FAMILY RESIDENTIAL PROPERTIES As of September 30, 2022, the Company owns 112 26 19.5 161,182 38,533 474,936 53,755 The following table presents the summary of our SRFs as of September 30, 2022: SUMMARY OF SINGLE FAMILY RESIDENTIAL PROPERTIES Number of Homes Aggregate investment Average Investment per Home SFRs 112 $ 25,663,582 $ 229,139 |
LEASE INCOME
LEASE INCOME | 9 Months Ended |
Sep. 30, 2022 | |
Lease Income | |
LEASE INCOME | 8. LEASE INCOME The Company generally rents its SFRs under lease agreements with a term of one year. Future minimum rental revenue under existing leases on our properties at September 30, 2022 in each calendar year through the end of their terms are as follows: SUMMARY OF FUTURE MINIMUM RENTAL REVENUE 2022 $ 552,644 2023 856,590 2024 7,450 Total Future Receipts $ 1,416,684 Property Management Agreements The Company has entered into property management agreement with the property managers under which the property managers generally oversee and direct the leasing, management and advertising of the properties in our portfolio, including collecting rents and acting as liaison with the tenants. The Company pays its property managers a monthly property management fee for each property unit and a leasing fee. For the three months ended September 30, 2022 and 2021, property management fees incurred by the property managers were $ 28,890 6,390 60,390 7,380 36,420 31,580 149,625 47,805 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 9. COMMITMENTS AND CONTINGENCIES Leases The Company leases office space in Texas and Maryland. The lease for the Company’s Texas office is currently on a month-to-month basis, while the lease of the Company’s Maryland office expires on December 31, 2024 2,300 8,143 87,652 87,197 The balance of the operating lease right-of-use asset and operating lease liability as of September 30, 2022 was $ 129,373 132,694 191,979 199,483 Supplemental Cash Flow and Other Information Related to Operating Leases are as follows: SCHEDULE OF SUPPLEMENTAL CASH FLOW AND OTHER INFORMATION RELATED TO OPERATING LEASES Nine Months Ended September 30, 2022 Weighted Average Remaining Operating Lease Term (in years) 1.50 The below table summarizes future payments due under these leases as of September 30, 2022. SCHEDULE OF FUTURE PAYMENTS DUE UNDER LEASES For the Years Ending September 30: L 74 2023 $ 94,468 2024 48,206 Total Minimum Lease Payments 142,674 Less: Effect of Discounting 9,979 Present Value of Future Minimum Lease Payments 132,695 Less: Current Obligation under Leases 88,287 Long-term Lease Obligations $ 44,408 Lot Sale Agreements On November 23, 2015, SeD Maryland Development LLC completed the $ 15,700,000 197 15,000,000 197 443 0 18 3 76 Certain arrangements for the sale of buildable lots to NVR require the Company to credit NVR with an amount equal to one year of the FFB assessment. Under ASC 606, the credits to NVR are not in exchange for a distinct good or service and accordingly, the amount of the credit was recognized as the reduction of revenue. As of September 30, 2022 and December 31, 2021, the accrued balance due to NVR was $ 189,475 188,125 Security Deposits Our rental-home lease agreements require tenants to provide a one-month security deposits. The property management company collects all security deposits and maintains them in a trust account. The Company also has obligation to refund these deposits to the renters at the time of lease termination. As of September 30, 2022, the security deposits held in the trust account were $ 260,835 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 10. SUBSEQUENT EVENTS On October 28, 2022, 150 CCM Black Oak Ltd. (the “Seller”), a Texas Limited Partnership and subsidiary of the Company, entered into a Contract for Purchase and Sale and Escrow Instructions (the “Agreement”) with Century Land Holdings of Texas, LLC, a Colorado limited liability company (the “Buyer”). Pursuant to the terms of the Agreement, the Seller has agreed to sell all of the approximately 242 single-family detached residential lots comprising a residential community in the city of Magnolia, Texas known as the “Lakes at Black Oak.” The lots will be sold at a range of prices, and the Seller will also be entitled to receive a community enhancement fee for each lot sold. The aggregate purchase price and community enhancement fees are anticipated to be $ 12,881,000 The closing of the transactions described in the Agreement depends on the satisfaction of certain conditions set forth therein. There can be no assurance that such closings will be completed on the terms outlined herein or at all. The Buyer has agreed to purchase the lots in stages, with an estimated closing date of December of 2022 for the first 132 lots to be acquired, with the remainder to be acquired through 2023. Prior to such closing dates, the Buyer shall have a thirty (30) day inspection period in which to inspect the properties and determine their suitability; during such inspection period, the Buyer may decline to proceed with the closing of these transactions. The Seller shall be required to develop and improve the property at the Seller’s cost pursuant to certain development plans and government regulations prior to the closings described above. |
NATURE OF OPERATIONS AND SUMM_2
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations LiquidValue Development Inc. (the “Company”), formerly known as SeD Intelligent Home Inc. and Homeownusa, was incorporated in the State of Nevada on December 10, 2009. On December 29, 2017, the Company, acquired Alset EHome Inc. (“Alset EHome”) by reverse merger. Alset EHome, a Delaware corporation, was formed on February 24, 2015. Alset EHome is principally engaged in developing, selling, managing, and leasing residential properties in the United States in current stage and may expand from residential properties to other property types, including but not limited to commercial and retail properties. The Company is 99.99 The Company’s current operations concentrate around two types of projects, land development and house rental business. Both of them are included in our only reporting segment – real state. In determination of segments, the Company, together with its chief operating decision maker, who is also our CEO, considers factors that include the nature of business activities, allocation of resources and management structure. |
Principles of Consolidation | Principles of Consolidation The condensed consolidated financial statements include all accounts of the following entities as of the reporting period ending dates and for the reporting periods as follows: SCHEDULE OF ACCOUNTS OF ENTITIES Name of consolidated subsidiary State or other jurisdiction of incorporation or organization Date of incorporation or formation Attributable interest Alset EHome Inc. Delaware February 24, 2015 100 % SeD USA, LLC Delaware August 20, 2014 100 % 150 Black Oak GP, Inc. Texas January 23, 2014 100 % SeD Development USA, Inc. Delaware March 13, 2014 100 % 150 CCM Black Oak Ltd. Texas March 17, 2014 100 % SeD Ballenger, LLC Delaware July 7, 2015 100 % SeD Maryland Development, LLC Delaware October 16, 2014 83.55 % SeD Development Management, LLC Delaware June 18, 2015 85 % SeD Builder, LLC Delaware October 21, 2015 100 % SeD Texas Home, LLC Delaware June 16, 2015 100 % SeD REIT Inc. Maryland August 20, 2019 100 % Alset Solar Inc. Texas September 21, 2020 80 % American Home REIT Inc. Maryland September 30, 2020 100 % AHR Texas Two, LLC Delaware September 28, 2021 100 % AHR Black Oak One, LLC Delaware September 29, 2021 100 % AHR Texas Three, LLC Delaware December 21, 2021 100 % Robotic gHome Inc. Texas August 25, 2022 90 % All intercompany balances and transactions have been eliminated. Non–controlling interest represents the minority equity investment in the Company’s subsidiaries, plus the minority investors’ share of the net operating results and other components of equity relating to the non–controlling interest. As of September 30, 2022 and December 31, 2021, the aggregate non-controlling interest in Alset EHome Inc. was $ 76,600 51,536 |
Basis of Presentation | Basis of Presentation The Company’s condensed consolidated financial statements have been prepared in accordance with the accounting principles generally accepted in the United States of America (“US GAAP”). The unaudited financial information furnished herein reflects all adjustments, consisting solely of normal recurring items, which in the opinion of management are necessary to fairly state the financial position of the Company and the results of its operations for the periods presented. This report should be read in conjunction with the Company’s consolidated financial statements and notes thereto included in the Company’s Form 10-K for the year ended December 31, 2021 filed on March 14, 2022. The Company assumes that the users of the interim financial information herein have read or have access to the audited consolidated financial statements for the preceding fiscal year and the adequacy of additional disclosure needed for a fair presentation may be determined in that context. The consolidated balance sheet at December 31, 2021 was derived from the audited consolidated financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America. The results of operations for the interim periods presented are not necessarily indicative of results for the year ending December 31, 2022. |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts in the condensed consolidated financial statements. The Company’s significant estimates are made in connection with the valuation of real estate. Actual results could differ from those estimates. |
Earnings (Loss) per Share | Earnings (Loss) per Share Basic income (loss) per share is computed by dividing the net income (loss) attributable to the common stockholders by weighted average number of shares of common stock outstanding during the period. Fully diluted loss per share is computed similarly to basic loss per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. There were no potentially dilutive financial instruments issued or outstanding for the periods ended September 30, 2022 or September 30, 2021. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments For purpose of this disclosure, the fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced sale or liquidation. The carrying amount of the Company’s short-term financial instruments approximates fair value due to the relatively short period to maturity for these instruments. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with a maturity of three months or less at the date of acquisition to be cash equivalents. There were no |
Restricted Cash | Restricted Cash As a condition to the loan agreement with the Manufacturers and Traders Trust Company (“M&T Bank”), the Company was required to maintain a minimum of $ 2,600,000 2,300,000 300,000 309,145 4,399,984 |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable include all receivables from buyers, contractors and all other parties. The Company records an allowance for doubtful accounts based on a review of the outstanding receivables, historical collection information and economic conditions. No allowance was necessary at either September 30, 2022 or December 31, 2021. |
Property and Equipment and Depreciation | Property and Equipment and Depreciation Property and equipment are recorded at cost, less accumulated depreciation. Expenditures for major additions and betterments that extend the useful life or functionality are capitalized. Maintenance and repairs are charged to operations as incurred. Depreciation is computed by the straight-line method (after taking into account their respective estimated residual values) over the estimated useful lives, which are 3 |
Real Estate Assets | Real Estate Assets ● Land Development Assets Real estate assets are recorded at cost, except when real estate assets are acquired that meet the definition of a business combination in accordance with Financial Accounting Standards Board (“FASB”) ASC 805, “Business Combinations,” which acquired assets are recorded at fair value. Interest, property taxes, insurance and other incremental costs (including salaries) directly related to a project are capitalized during the construction period of major facilities and land improvements. The capitalization period begins when activities to develop the parcel commence and ends when the asset constructed is completed. The capitalized costs are recorded as part of the asset to which they relate and are reduced when lots are sold. In addition to our annual assessment of potential triggering events in accordance with ASC 360, the Company applies a fair-value based impairment test to the net book value assets on an annual basis and on an interim basis, if certain events or circumstances indicate that an impairment loss may have occurred. The Company did not record impairment on any of its projects during the nine months ended on September 30, 2022, nor for the nine months ended September 30, 2021. ● Investments in Single-Family Residential Properties The Company accounts for its investments in single-family residential properties as asset acquisitions and records these acquisitions at their purchase price. The purchase price is allocated between land, building, improvements and existing leases based upon their relative fair values at the date of acquisition. The purchase price for purposes of this allocation is inclusive of acquisition costs which typically include legal fees, title fees, property inspection and valuation fees, as well as other closing costs. Building improvements and buildings are depreciated over estimated useful lives of approximately 10 27.5 The Company assesses its investments in single-family residential properties for impairment whenever events or changes in business circumstances indicate that carrying amounts of the assets may not be fully recoverable. When such events occur, management determines whether there has been impairment by comparing the asset’s carrying value with its fair value. Should impairment exist, the asset is written down to its estimated fair value. The Company did not recognize any impairment losses during the nine months ended on September 30, 2022. |
Revenue Recognition | Revenue Recognition ● Land Development Revenue Recognition ASC 606, Revenue from Contracts with Customers, establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods or services to customers. The Company adopted this new standard on January 1, 2018 under the modified retrospective method. The adoption of this new standard did not have a material effect on our financial statements. In accordance with ASC 606, revenue is recognized when a customer obtains control of promised goods or services. The amount of revenue recognized reflects the consideration to which we expect to be entitled to receive in exchange for these goods or services. The provisions of ASC 606 include a five-step process by which we determine revenue recognition, depicting the transfer of goods or services to customers in amounts reflecting the payment to which we expect to be entitled in exchange for those goods or services. ASC 606 requires us to apply the following steps: (1) identify the contract with the customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, we satisfy the performance obligation. A detailed breakdown of the five-step process for the revenue recognition of our Ballenger project, which were essentially all of the revenue of the Company in 2022 and 2021, is as follows: a. Identify the contract with a customer. In the event of a sale the Company has signed agreements with the builders for developing the raw land ready to build lots. The contract has agreed upon prices, timelines, and specifications for what is to be provided. b. Identify the performance obligations in the contract. Performance obligations of the Company include delivering developed lots to the customer, which are required to meet certain specifications that are outlined in the contract. The customer inspects all lots prior to accepting title to ensure all specifications are met. c. Determine the transaction price. The transaction price is fixed and specified in the contract. Any subsequent change orders or price changes are required to be approved by both parties. d. Allocate the transaction price to performance obligations in the contract. Each lot or a group of lots is considered to be a separate performance obligation, for which the specified price in the contract is allocated to. e. Recognize revenue when (or as) the entity satisfies a performance obligation. In the event of a sale the builders do the inspections to make sure all conditions/requirements are met before taking title of lots. The Company recognizes revenue when title is transferred. The Company does not have further performance obligations once title is transferred. ● Rental Revenue Recognition The Company leases real estate properties to its tenants under leases that are predominately classified as operating leases, in accordance with ASC 842, Leases (“ASC 842”). Real estate rental revenue is comprised of minimum base rent and revenue from the collection of lease termination fees. Rent from tenants is recorded in accordance with the terms of each lease agreement on a straight-line basis over the initial term of the lease. Rental revenue recognition begins when the tenant controls the space and continues through the term of the related lease. Generally, at the end of the lease term, the Company provides the tenant with a one-year renewal option, including mostly the same terms and conditions provided under the initial lease term, subject to rent increases. The Company defers rental revenue related to lease payments received from tenants in advance of their due dates. These amounts are presented within deferred revenues and other payables on the Company’s condensed consolidated balance sheets. Rental revenue is subject to an evaluation for collectability on several factors, including payment history, the financial strength of the tenant and any guarantors, historical operations and operating trends of the property, and current economic conditions. If our evaluation of these factors indicates that it is not probable that we will recover substantially all of the receivable, rental revenue is limited to the lesser of the rental revenue that would be recognized on a straight-line basis (as applicable) or the lease payments that have been collected from the lessee. Differences between rental revenue recognized and amounts contractually due under the lease agreements are credited or charged to straight-line rent receivable or straight-line rent liability, as applicable. For the nine months ended September 30, 2022, the Company did not recognize any deferred revenue and collected all rents due. |
Sale of the Front Foot Benefit Assessments | Sale of the Front Foot Benefit Assessments We have established a front foot benefit (“FFB”) assessment on all of the NVR lots. This is a 30-year annual assessment allowed in Frederick County which requires homeowners to reimburse the developer for the costs of installing public water and sewer to the lots. These assessments become effective as homes are settled, at which time we can sell the collection rights to investors who will pay an upfront lump sum, enabling us to more quickly realize the revenue. The selling prices range from $ 3,000 4,500 1 During the three months ended on September 30, 2022 and 2021, we recognized revenue of $ 9,968 182,813 126,055 431,458 |
Contract Assets and Contract Liabilities | Contract Assets and Contract Liabilities Based on our contracts, we invoice customers once our performance obligations have been satisfied, at which point payment is unconditional. Accordingly, our contracts do not give rise to contract assets or liabilities under ASC 606. Accounts receivable are recorded when the right to consideration becomes unconditional. We disclose receivables from contracts with customers separately on the balance sheets. |
Cost of Revenue | Cost of Revenue ● Cost of Real Estate Sale All of the costs of real estate sales are from our land development business. Land acquisition costs are allocated to each lot based on the area method, the size of the lot comparing to the total size of all lots in the project. Development costs and capitalized interest are allocated to lots sold based on the total expected development and interest costs of the completed project and allocating a percentage of those costs based on the selling price of the sold lot compared to the expected sales values of all lots in the project. If allocation of development costs and capitalized interest based on the projection and relative expected sales value is impracticable, those costs could also be allocated based on area method, the size of the lot comparing to the total size of all lots in the project. ● Cost of Rental Revenue Cost of rental revenue consists primarily of the costs associated with management and leasing fees to our management company, repairs and maintenance, depreciation and other related administrative costs. Utility expenses are paid directly by tenants. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of Reference Rate Reform on Financial Reporting In October 2021, the FASB issued ASU No. 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers.” ASU 2021-08 requires the company acquiring contract assets and contract liabilities obtained in a business combination to recognize and measure them in accordance with ASC 606, “Revenue from Contracts with Customers”. At the acquisition date, the company acquiring the business should record related revenue, as if it had originated the contract. Before the update such amounts were recognized by the acquiring company at fair value. The amendments in this Update are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted, including in interim periods, for any financial statements that have not yet been issued. The Company plans to adopt these requirements prospectively, effective on the first day of year 2023. |
NATURE OF OPERATIONS AND SUMM_3
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
SCHEDULE OF ACCOUNTS OF ENTITIES | The condensed consolidated financial statements include all accounts of the following entities as of the reporting period ending dates and for the reporting periods as follows: SCHEDULE OF ACCOUNTS OF ENTITIES Name of consolidated subsidiary State or other jurisdiction of incorporation or organization Date of incorporation or formation Attributable interest Alset EHome Inc. Delaware February 24, 2015 100 % SeD USA, LLC Delaware August 20, 2014 100 % 150 Black Oak GP, Inc. Texas January 23, 2014 100 % SeD Development USA, Inc. Delaware March 13, 2014 100 % 150 CCM Black Oak Ltd. Texas March 17, 2014 100 % SeD Ballenger, LLC Delaware July 7, 2015 100 % SeD Maryland Development, LLC Delaware October 16, 2014 83.55 % SeD Development Management, LLC Delaware June 18, 2015 85 % SeD Builder, LLC Delaware October 21, 2015 100 % SeD Texas Home, LLC Delaware June 16, 2015 100 % SeD REIT Inc. Maryland August 20, 2019 100 % Alset Solar Inc. Texas September 21, 2020 80 % American Home REIT Inc. Maryland September 30, 2020 100 % AHR Texas Two, LLC Delaware September 28, 2021 100 % AHR Black Oak One, LLC Delaware September 29, 2021 100 % AHR Texas Three, LLC Delaware December 21, 2021 100 % Robotic gHome Inc. Texas August 25, 2022 90 % |
SINGLE FAMILY RESIDENTIAL PRO_2
SINGLE FAMILY RESIDENTIAL PROPERTIES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Extractive Industries [Abstract] | |
SUMMARY OF SINGLE FAMILY RESIDENTIAL PROPERTIES | The following table presents the summary of our SRFs as of September 30, 2022: SUMMARY OF SINGLE FAMILY RESIDENTIAL PROPERTIES Number of Homes Aggregate investment Average Investment per Home SFRs 112 $ 25,663,582 $ 229,139 |
LEASE INCOME (Tables)
LEASE INCOME (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Lease Income | |
SUMMARY OF FUTURE MINIMUM RENTAL REVENUE | SUMMARY OF FUTURE MINIMUM RENTAL REVENUE 2022 $ 552,644 2023 856,590 2024 7,450 Total Future Receipts $ 1,416,684 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
SCHEDULE OF SUPPLEMENTAL CASH FLOW AND OTHER INFORMATION RELATED TO OPERATING LEASES | Supplemental Cash Flow and Other Information Related to Operating Leases are as follows: SCHEDULE OF SUPPLEMENTAL CASH FLOW AND OTHER INFORMATION RELATED TO OPERATING LEASES Nine Months Ended September 30, 2022 Weighted Average Remaining Operating Lease Term (in years) 1.50 |
SCHEDULE OF FUTURE PAYMENTS DUE UNDER LEASES | The below table summarizes future payments due under these leases as of September 30, 2022. SCHEDULE OF FUTURE PAYMENTS DUE UNDER LEASES For the Years Ending September 30: L 74 2023 $ 94,468 2024 48,206 Total Minimum Lease Payments 142,674 Less: Effect of Discounting 9,979 Present Value of Future Minimum Lease Payments 132,695 Less: Current Obligation under Leases 88,287 Long-term Lease Obligations $ 44,408 |
SCHEDULE OF ACCOUNTS OF ENTITIE
SCHEDULE OF ACCOUNTS OF ENTITIES (Details) | 9 Months Ended |
Sep. 30, 2022 | |
Subsidiary One [Member] | |
Name of consolidated subsidiary | Alset EHome Inc. |
State or other jurisdiction of incorporation or organization | Delaware |
Date of incorporation or formation | February 24, 2015 |
Attributable interest | 100% |
Subsidiary Two [Member] | |
Name of consolidated subsidiary | SeD USA, LLC |
State or other jurisdiction of incorporation or organization | Delaware |
Date of incorporation or formation | August 20, 2014 |
Attributable interest | 100% |
Subsidiary Three [Member] | |
Name of consolidated subsidiary | 150 Black Oak GP, Inc. |
State or other jurisdiction of incorporation or organization | Texas |
Date of incorporation or formation | January 23, 2014 |
Attributable interest | 100% |
Subsidiary Four [Member] | |
Name of consolidated subsidiary | SeD Development USA, Inc. |
State or other jurisdiction of incorporation or organization | Delaware |
Date of incorporation or formation | March 13, 2014 |
Attributable interest | 100% |
Subsidiary Five [Member] | |
Name of consolidated subsidiary | 150 CCM Black Oak Ltd. |
State or other jurisdiction of incorporation or organization | Texas |
Date of incorporation or formation | March 17, 2014 |
Attributable interest | 100% |
Subsidiary Six [Member] | |
Name of consolidated subsidiary | SeD Ballenger, LLC |
State or other jurisdiction of incorporation or organization | Delaware |
Date of incorporation or formation | July 7, 2015 |
Attributable interest | 100% |
Subsidiary Seven [Member] | |
Name of consolidated subsidiary | SeD Maryland Development, LLC |
State or other jurisdiction of incorporation or organization | Delaware |
Date of incorporation or formation | October 16, 2014 |
Attributable interest | 83.55% |
Subsidiary Eight [Member] | |
Name of consolidated subsidiary | SeD Development Management, LLC |
State or other jurisdiction of incorporation or organization | Delaware |
Date of incorporation or formation | June 18, 2015 |
Attributable interest | 85% |
Subsidiary Nine [Member] | |
Name of consolidated subsidiary | SeD Builder, LLC |
State or other jurisdiction of incorporation or organization | Delaware |
Date of incorporation or formation | October 21, 2015 |
Attributable interest | 100% |
Subsidiary Ten [Member] | |
Name of consolidated subsidiary | SeD Texas Home, LLC |
State or other jurisdiction of incorporation or organization | Delaware |
Date of incorporation or formation | June 16, 2015 |
Attributable interest | 100% |
Subsidiary Eleven [Member] | |
Name of consolidated subsidiary | SeD REIT Inc. |
State or other jurisdiction of incorporation or organization | Maryland |
Date of incorporation or formation | August 20, 2019 |
Attributable interest | 100% |
Subsidiary Twelve [Member] | |
Name of consolidated subsidiary | Alset Solar Inc. |
State or other jurisdiction of incorporation or organization | Texas |
Date of incorporation or formation | September 21, 2020 |
Attributable interest | 80% |
Subsidiary Thirteen [Member] | |
Name of consolidated subsidiary | American Home REIT Inc. |
State or other jurisdiction of incorporation or organization | Maryland |
Date of incorporation or formation | September 30, 2020 |
Attributable interest | 100% |
Subsidiary Fourteen [Member] | |
Name of consolidated subsidiary | AHR Texas Two, LLC |
State or other jurisdiction of incorporation or organization | Delaware |
Date of incorporation or formation | September 28, 2021 |
Attributable interest | 100% |
Subsidiary Fifteen [Member] | |
Name of consolidated subsidiary | AHR Black Oak One, LLC |
State or other jurisdiction of incorporation or organization | Delaware |
Date of incorporation or formation | September 29, 2021 |
Attributable interest | 100% |
Subsidiary Sixteen [Member] | |
Name of consolidated subsidiary | AHR Texas Three, LLC |
State or other jurisdiction of incorporation or organization | Delaware |
Date of incorporation or formation | December 21, 2021 |
Attributable interest | 100% |
Subsidiary Seventeen [Member] | |
Name of consolidated subsidiary | Robotic gHome Inc. |
State or other jurisdiction of incorporation or organization | Texas |
Date of incorporation or formation | August 25, 2022 |
Attributable interest | 90% |
NATURE OF OPERATIONS AND SUMM_4
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Mar. 15, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | ||||||
Minority interest | $ 76,600 | $ 76,600 | $ 51,536 | |||
Cash equivalents | 0 | 0 | 0 | |||
Deposit money market | 2,600,000 | 2,600,000 | ||||
Debt instrument collateral amount | $ 2,300,000 | |||||
Collateral for outstanding letters of credit | $ 300,000 | |||||
Restricted cash | 309,145 | $ 4,399,872 | $ 309,145 | $ 4,399,872 | $ 4,399,984 | |
Property plant and equipment, useful life | 3 years | |||||
Recognized revenue | 579,758 | 3,547,396 | $ 1,870,882 | 12,026,069 | ||
Front Foot Benefit Assessment [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Revenues | 1,000,000 | |||||
Recognized revenue | $ 9,968 | $ 182,813 | 126,055 | $ 431,458 | ||
Minimum [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Selling price | $ 3,000 | |||||
Minimum [Member] | Building and Building Improvements [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property plant and equipment, useful life | 10 years | |||||
Maximum [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Selling price | $ 4,500 | |||||
Maximum [Member] | Building and Building Improvements [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property plant and equipment, useful life | 27 years 6 months | |||||
SeD Intelligent Home Inc [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Ownership percentage | 99.99% | 99.99% |
CONCENTRATION OF CREDIT RISK (D
CONCENTRATION OF CREDIT RISK (Details Narrative) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Risks and Uncertainties [Abstract] | ||
Uninsured cash balances | $ 1,215,224 | $ 6,137,775 |
BUILDER DEPOSITS (Details Narra
BUILDER DEPOSITS (Details Narrative) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Nov. 30, 2015 USD ($) Integer | Sep. 30, 2022 USD ($) Integer | Sep. 30, 2021 Integer | Sep. 30, 2022 USD ($) Integer | Sep. 30, 2021 Integer | Dec. 31, 2021 USD ($) | Apr. 28, 2020 USD ($) | Jan. 03, 2019 USD ($) | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Deposits | $ 31,553 | |||||||
NVR Inc [Member] | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Number of lots | Integer | 0 | 18 | 3 | 76 | ||||
Lot Purchase Agreement [Member] | NVR Inc [Member] | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Number of lots | Integer | 479 | 443 | ||||||
Purchase price of lots | $ 64,000,000 | |||||||
Percentage of annual escalates | 3% | |||||||
Deposits | $ 5,600,000 | $ 0 | $ 0 | $ 31,553 | $ 220,000 | $ 100,000 | ||
Percentage of payback deposite | 9.90% |
NOTES PAYABLE (Details Narrativ
NOTES PAYABLE (Details Narrative) - USD ($) | 9 Months Ended | 12 Months Ended | ||||||
Mar. 15, 2022 | Jun. 18, 2020 | Apr. 17, 2019 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | May 28, 2021 | Feb. 11, 2021 | |
Debt Instrument [Line Items] | ||||||||
Collateral for outstanding letters of credit | $ 300,000 | |||||||
Debt instrument collateral amount | 2,300,000 | |||||||
Amortization of debt discount | $ 42,907 | |||||||
M&T Bank Loans [Member] | Paycheck Protection Program [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal loan amount | $ 68,502 | |||||||
Debt interest rate | 1% | |||||||
Percentage for forgiven amount | 60% | |||||||
M&T Bank Loans [Member] | SeD Maryland Development LLC [Member] | Development Loan Agreement [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal loan amount | $ 8,000,000 | |||||||
Line of credit facility, maximum borrowing capacity | $ 18,500,000 | |||||||
Line of credit interest rate | 1.50% | |||||||
Collateral for outstanding letters of credit | 300,000 | $ 2,600,000 | ||||||
Letter of credit | $ 0 | $ 0 | ||||||
Debt instrument collateral amount | $ 2,300,000 | |||||||
M&T Bank Loans [Member] | SeD Maryland Development LLC [Member] | Development Loan Agreement [Member] | Letter of Credit [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | $ 900,000 | |||||||
M&T Bank Loans [Member] | SeD Maryland Development LLC [Member] | Development Loan Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate description | LIBOR plus 375 basis points. | |||||||
M&T Bank Loans [Member] | Alset EHome Inc [Member] | Loan Agreement [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal loan amount | $ 664,810 | |||||||
Line of credit facility, maximum borrowing capacity | $ 2,990,000 | |||||||
Interest rate description | LIBOR plus 375 basis points. | |||||||
Line of credit maturity date | Jul. 01, 2022 | |||||||
Interest payable | $ 25,225 | |||||||
Amortization of debt discount | $ 42,907 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Jan. 01, 2018 | Jun. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | ||||||||
Related party transaction, description | (i) a sum of $50,000 on June 30, 2022; (ii) a sum of $50,000 upon the successful financing of 100 homes owned by American Housing REIT Inc. with an entity not affiliated with SeD Development Management LLC (a subsidiary of the Company); and (iii) a sum of $50,000 upon the successful leasing of 30 homes in the Alset of Black Oak development. | |||||||
Due from related parties | $ 16,249 | $ 16,249 | $ 26,565 | |||||
SeD Intelligent Home Inc [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Interest rate | 18% | 18% | ||||||
Due to related party | $ 22,533,055 | $ 22,533,055 | 19,891,734 | |||||
Interest payable | $ 854,256 | $ 854,256 | 144,588 | |||||
Ownership percentage | 99.99% | 99.99% | ||||||
Debt instrument interest rate adjusted percentage | 5% | 5% | ||||||
SeD Home Limited [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Interest rate | 10% | 10% | ||||||
Alset EHome Inc [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Due to related party | $ 0 | $ 0 | 0 | |||||
Interest payable | 228,557 | 228,557 | 228,557 | |||||
Charles MacKenzie [Member] | Consulting Agreement [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Due to related party | 25,000 | 25,000 | 80,000 | |||||
Professional fees | $ 20,000 | 25,000 | ||||||
Management fees | 75,000 | $ 60,000 | 275,000 | $ 240,000 | ||||
Bonus payment | $ 50,000 | 120,000 | ||||||
Alset International [Member] | Management Service Agreement [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Due to related party | 720,000 | |||||||
Professional fees | 30,000 | |||||||
Consulting expenses | $ 90,000 | $ 270,000 | ||||||
Alset International [Member] | Management Service Agreement [Member] | One-Time Payment [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Professional fees | $ 360,000 | |||||||
Alset Inc [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Due from related parties | $ 16,249 | $ 16,249 | ||||||
Alset EHome International Inc [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Due from related parties | $ 26,566 |
STOCKHOLDERS_ EQUITY (Details N
STOCKHOLDERS’ EQUITY (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Distribution to non-controlling stockholder | $ (246,750) | $ (1,069,250) | $ (82,250) | ||
Payment of distribution amount | $ 1,398,250 | ||||
SeD Maryland Development LLC [Member] | |||||
Percentage of minority interest | 83.55% | 83.55% | |||
Distribution to non-controlling stockholder | $ 8,500,000 | ||||
Payment of distribution amount | $ 1,398,250 |
SUMMARY OF SINGLE FAMILY RESIDE
SUMMARY OF SINGLE FAMILY RESIDENTIAL PROPERTIES (Details) | Sep. 30, 2022 USD ($) Integer | Dec. 31, 2021 USD ($) |
Financial Support for Nonconsolidated Legal Entity [Line Items] | ||
Aggregate investment in property | $ 26,745,807 | $ 24,940,764 |
Single Family Residential Properties [Member] | ||
Financial Support for Nonconsolidated Legal Entity [Line Items] | ||
Number of Homes | Integer | 112 | |
Aggregate investment in property | $ 25,663,582 | |
Average Investment per Home | $ 229,139 |
SINGLE FAMILY RESIDENTIAL PRO_3
SINGLE FAMILY RESIDENTIAL PROPERTIES (Details Narrative) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 USD ($) Integer | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) Integer | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Reserve Quantities [Line Items] | |||||
Aggregate investment in property | $ 26,745,807 | $ 26,745,807 | $ 24,940,764 | ||
Depreciation | 475,618 | $ 55,905 | |||
SeD Intelligent Home Inc [Member] | |||||
Reserve Quantities [Line Items] | |||||
Amount borrowed | $ 19,500,000 | $ 19,500,000 | |||
Single Family Residential Properties [Member] | |||||
Reserve Quantities [Line Items] | |||||
Number of Homes | Integer | 112 | 112 | |||
Aggregate investment in property | $ 25,663,582 | $ 25,663,582 | |||
Depreciation | $ 161,182 | $ 38,533 | $ 474,936 | $ 53,755 |
SUMMARY OF FUTURE MINIMUM RENTA
SUMMARY OF FUTURE MINIMUM RENTAL REVENUE (Details) | Sep. 30, 2022 USD ($) |
Lease Income | |
2022 | $ 552,644 |
2023 | 856,590 |
2024 | 7,450 |
Total Future Receipts | $ 1,416,684 |
LEASE INCOME (Details Narrative
LEASE INCOME (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Lease Income | ||||
Property management fee | $ 28,890 | $ 6,390 | $ 60,390 | $ 7,380 |
Leasing fees incurred by property managers | $ 36,420 | $ 31,580 | $ 149,625 | $ 47,805 |
SCHEDULE OF SUPPLEMENTAL CASH F
SCHEDULE OF SUPPLEMENTAL CASH FLOW AND OTHER INFORMATION RELATED TO OPERATING LEASES (Details) | Sep. 30, 2022 |
Commitments and Contingencies Disclosure [Abstract] | |
Weighted average remaining operating lease term (in years) | 1 year 6 months |
SCHEDULE OF FUTURE PAYMENTS DUE
SCHEDULE OF FUTURE PAYMENTS DUE UNDER LEASES (Details) | Sep. 30, 2022 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2023 | $ 94,468 |
2024 | 48,206 |
Total Minimum Lease Payments | 142,674 |
Less: Effect of Discounting | 9,979 |
Present Value of Future Minimum Lease Payments | 132,695 |
Less: Current Obligation under Leases | 88,287 |
Long-term Lease Obligations | $ 44,408 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details Narrative) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Nov. 30, 2015 Integer | Sep. 30, 2022 USD ($) Integer | Sep. 30, 2021 Integer | Sep. 30, 2022 USD ($) Integer | Sep. 30, 2021 USD ($) Integer | Dec. 31, 2021 USD ($) | Nov. 23, 2015 USD ($) a | May 28, 2014 USD ($) a | |
Loss Contingencies [Line Items] | ||||||||
Lease expiration date | Dec. 31, 2024 | |||||||
Payments for rent | $ 87,652 | $ 87,197 | ||||||
Operating lease right-of-use asset | $ 129,373 | 129,373 | $ 191,979 | |||||
Operating lease liability | 132,694 | 132,694 | 199,483 | |||||
Security deposits | $ 260,835 | $ 260,835 | ||||||
NVR Inc [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Number of lots | Integer | 0 | 18 | 3 | 76 | ||||
Due to related party | $ 189,475 | $ 189,475 | $ 188,125 | |||||
Lot Purchase Agreement [Member] | NVR Inc [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Number of lots | Integer | 479 | 443 | ||||||
SeD Maryland Development LLC [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Business acquisition transaction | $ 15,700,000 | |||||||
Area of land | a | 197 | |||||||
RBG Family LLC [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Business acquisition transaction | $ 15,000,000 | |||||||
Area of land | a | 197 | |||||||
Minimum [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Payments for rent | $ 2,300 | |||||||
Maximum [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Payments for rent | $ 8,143 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) | Oct. 28, 2022 USD ($) |
Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Entity transaction costs | $ 12,881,000 |