Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2023 | Aug. 10, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2023 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2023 | |
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 ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Real Estate | ||
Construction in Progress | $ 4,887,570 | $ 15,616,257 |
Land Held for Development | 3,395,701 | 7,943,126 |
Other Properties | 406,274 | 411,528 |
Total | 8,689,545 | 23,970,911 |
Cash | 838,989 | 1,034,611 |
Restricted Cash | 309,372 | 309,219 |
Other Receivable | 143,321 | 143,574 |
Reimbursement Receivable | 7,234,079 | |
Prepaid Expenses | 8,032 | |
Fixed Assets, Net | 3,228 | 4,629 |
Deposits | 21,491 | 23,603 |
Operating Lease Right-Of-Use Asset, Net | 66,893 | 108,950 |
Assets from Discontinued Operations | 27,099,836 | |
Total Assets | 30,567,109 | 52,703,365 |
Liabilities: | ||
Accounts Payable and Accrued Expenses | 965,825 | 1,240,347 |
Accrued Interest - Related Parties | 228,557 | 1,383,019 |
Deferred Revenue | 2,100 | |
Security Deposit | 2,100 | |
Operating Lease Liability | 66,414 | 110,431 |
Liabilities from Discontinued Operations | 1,112,932 | |
Total Liabilities | 1,264,996 | 30,289,784 |
Stockholders’ Equity: | ||
Common Stock, at par $0.001, 1,000,000,000 shares authorized and 704,043,324 issued, and outstanding at June 30, 2023 and December 31, 2022 | 704,043 | 704,043 |
Additional Paid in Capital | 32,816,924 | 32,542,720 |
Accumulated Deficit | (4,290,232) | (10,907,442) |
Total LiquidValue Development Inc. Stockholders’ Equity | 29,230,735 | 22,339,321 |
Non-controlling Interests | 71,378 | 74,260 |
Total Stockholders’ Equity | 29,302,113 | 22,413,581 |
Total Liabilities and Stockholders’ Equity | 30,567,109 | 52,703,365 |
Related Party [Member] | ||
Real Estate | ||
Other Receivable | 230 | 0 |
Promissory Note Receivable - Related Party | 13,260,191 | |
Liabilities: | ||
Note Payable - Related Parties | $ 26,443,055 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 704,043,324 | 704,043,324 |
Common stock, shares outstanding | 704,043,324 | 704,043,324 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Statement [Abstract] | ||||
Revenue | $ 18,190,950 | $ 37,725 | $ 18,190,950 | $ 654,642 |
Total revenue | 18,190,950 | 37,725 | 18,190,950 | 654,642 |
Operating Expenses | ||||
Cost of Revenue | 10,956,224 | 2,363 | 10,956,224 | 460,255 |
General and Administrative | 501,296 | 389,041 | 887,080 | 778,763 |
Total Operating Expenses | 11,457,520 | 391,404 | 11,843,304 | 1,239,018 |
Income (Loss) from Operations | 6,733,430 | (353,679) | 6,347,646 | (584,376) |
Other Income and Expense | ||||
Interest Income | 203,834 | 376,320 | ||
Interest Expense | (143,807) | (234,484) | (314,643) | (468,728) |
Other Income | 215,179 | 68,502 | 215,179 | 68,502 |
Total Other Income (Expense) | 275,206 | (165,982) | 276,856 | (400,226) |
Net Income (Loss) from Continuing Operations Before Income Taxes | 7,008,636 | (519,661) | 6,624,502 | (984,602) |
Income Tax Expense | ||||
Net Income (Loss) from Continuing Operations | 7,008,636 | (519,661) | 6,624,502 | (984,602) |
Loss from Discontinued Operations, Net of Tax | (262,674) | (10,175) | (282,329) | |
Net Income (Loss) | 7,008,636 | (782,335) | 6,614,327 | (1,266,931) |
Net (Loss) Income Attributable to Non-controlling Interests | (1,772) | 4,497 | (2,882) | 25,489 |
Net Income (Loss) Attributable to Common Stockholders | $ 7,010,408 | $ (786,832) | $ 6,617,209 | $ (1,292,420) |
Net Income (Loss) Per Share - Basic and Diluted | ||||
Continuing Operations - Basic | $ 0.01 | $ 0 | $ 0.01 | $ 0 |
Continuing Operations - Diluted | 0.01 | 0 | 0.01 | 0 |
Discontinued Operations - Basic | 0 | 0 | 0 | |
Discontinued Operations - Diluted | 0 | 0 | 0 | |
Net Income (Loss) per Share - Basic | 0.01 | 0 | 0.01 | 0 |
Net Income (Loss) per Share - Diluted | $ 0.01 | $ 0 | $ 0.01 | $ 0 |
Weighted Average Common Shares Outstanding - Basic | 704,043,324 | 704,043,324 | 704,043,324 | 704,043,324 |
Weighted Average Common Shares Outstanding - Diluted | 704,043,324 | 704,043,324 | 704,043,324 | 704,043,324 |
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 |
Beginning balance, value 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 (Loss) Income | (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 | |||||
Beginning balance, value 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 (Loss) Income | (984,602) | |||||
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 | |||||
Beginning balance, value 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 (Loss) Income | (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 | |||||
Beginning balance, value at Dec. 31, 2022 | $ 704,043 | 32,542,720 | (10,907,442) | 22,339,321 | 74,260 | 22,413,581 |
Balance, shares at Dec. 31, 2022 | 704,043,324 | |||||
Gain on Disposal of Subsidiary to Related Party | 274,204 | 274,204 | 274,204 | |||
Net (Loss) Income | (393,198) | (393,198) | (1,110) | (394,308) | ||
Balance at Mar. 31, 2023 | $ 704,043 | 32,816,924 | (11,300,640) | 22,220,327 | 73,150 | 22,293,477 |
Balance, shares at Mar. 31, 2023 | 704,043,324 | |||||
Beginning balance, value at Dec. 31, 2022 | $ 704,043 | 32,542,720 | (10,907,442) | 22,339,321 | 74,260 | 22,413,581 |
Balance, shares at Dec. 31, 2022 | 704,043,324 | |||||
Net (Loss) Income | 6,614,327 | |||||
Balance at Jun. 30, 2023 | $ 704,043 | 32,816,924 | (4,290,232) | 29,230,735 | 71,378 | 29,302,113 |
Balance, shares at Jun. 30, 2023 | 704,043,324 | |||||
Beginning balance, value at Mar. 31, 2023 | $ 704,043 | 32,816,924 | (11,300,640) | 22,220,327 | 73,150 | 22,293,477 |
Balance, shares at Mar. 31, 2023 | 704,043,324 | |||||
Net (Loss) Income | 7,010,408 | 7,010,408 | (1,772) | 7,008,636 | ||
Balance at Jun. 30, 2023 | $ 704,043 | $ 32,816,924 | $ (4,290,232) | $ 29,230,735 | $ 71,378 | $ 29,302,113 |
Balance, shares at Jun. 30, 2023 | 704,043,324 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash Flows from Operating Activities | ||
Net Income (Loss) | $ 6,614,327 | $ (984,602) |
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by (Used in) Operating Activities: | ||
Depreciation | 6,655 | 1,575 |
Amortization of Right -Of- Use Asset | 44,017 | 41,270 |
PPP Loan Forgiveness | (68,502) | |
Changes in Operating Assets and Liabilities | ||
Real Estate Development | 15,276,112 | (2,852,748) |
Accounts Receivable | (61,368) | |
Reimbursement Receivable | (7,234,079) | |
Related Party Receivable | 10,943 | |
Promissory Note Receivable - Related Party | 1,092,708 | |
Prepaid Expenses | 6,072 | 150,027 |
Other Receivable | 2,366 | |
Accounts Payable and Accrued Expenses | (274,522) | (916,126) |
Accrued Interest - Related Parties | (1,154,462) | 468,848 |
Operating Lease Liability | (44,017) | (44,526) |
Deferred Revenue | 2,100 | |
Security Deposits | 2,100 | |
Builders Deposit | (31,553) | |
Net Cash Provided by (Used in) Continuing Operating Activities | 14,339,377 | (4,286,762) |
Net Cash Provided by Discontinued Operating Activities | 10,175 | 257,407 |
Net Cash Provided by (Used in) Operating Activities | 14,349,552 | (4,029,355) |
Cash Flows from Investing Activities | ||
Purchase of Fixed Assets | (1,303) | |
Net Cash Used in Continuing Investing Activities | (1,303) | |
Net Cash Used in Discontinued Investing Activities | (1,324,978) | |
Net Cash Used in Investing Activities | (1,326,281) | |
Cash Flows from Financing Activities | ||
Borrowing from Notes Payable - Related Parties | 3,560,000 | 1,500,000 |
Repayment to Notes Payable - Related Parties | (18,105,021) | (1,000,000) |
Net Cash (Used in) Provided by Continuing Financing Activities | (14,545,021) | 500,000 |
Net Cash Provided by Discontinued Financing Activities | ||
Net Cash (Used in) Provided by Financing Activities | (14,545,021) | 500,000 |
Net Decrease in Cash and Restricted Cash | (195,469) | (4,855,636) |
Cash and Restricted Cash - Beginning of Period | 1,343,830 | 7,455,729 |
Cash and Restricted Cash - End of Period | 1,148,361 | 2,600,093 |
Cash - Continuing Operation | 838,989 | 1,854,504 |
Restricted Cash - Continuing Operation | 309,372 | 309,137 |
Cash - Discontinued Operations | 436,452 | |
Total Cash and Restricted Cash | 1,148,361 | 2,600,093 |
Supplementary Cash Flow Information | ||
Cash Paid for Interest | 1,476,907 | |
Cash Paid for Taxes | ||
Supplemental Disclosure of Non-Cash Investing and Financing Activities | ||
Sale of AHR to Related Party | $ 25,976,729 |
NATURE OF OPERATIONS AND SUMMAR
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2023 | |
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 at the current time 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 land development projects, included in our only reporting segment – real estate. 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. The Company was also in the business of renting homes, however, on December 9, 2022, Alset EHome entered into a Stock Purchase Agreement with Alset International Limited and Alset Inc., pursuant to which Alset EHome agreed to sell all of the shares of American Home REIT Inc., the company holding all of the 112 rental properties, to Alset Inc. For further details on this transaction, refer to Note 5 to Company’s Financial Statements – Related Party Transactions and Note 7 – Discontinued Operations. Going Concern To date, the Company has incurred operating losses since inception of $ 4,290,233 In late 2022 and early 2023, the Company entered into three contracts with builders to sell multiple lots from its Black Oak project. The sales contemplated by these contracts are contingent on certain conditions which the parties to such contracts will need to meet and are expected to generate approximately $ 22 18.1 The Company plans to continue its near-term focus on lot sales to regional and national builders. Funds from such lot sales will substantially improve the Company’s liquidity, strengthen its financial position and meet is working capital requirements. The Company will continue its business model of being flexible to market conditions and thus will entertain further sales of finished lots to builders with the highest and best pricing based on market demand. Concurrently, it will evaluate acquiring new homes from regional and national builders to further the build-to-rent business model for income producing product in surrounding markets within Houston and Maryland markets. These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classification of liabilities that might result from this uncertainty. 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 REIT Inc. Maryland August 20, 2019 100 % Alset Solar Inc. Texas September 21, 2020 80 % AHR Black Oak One, LLC Delaware September 29, 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 June 30, 2023 and December 31, 2022, the aggregate non-controlling interest in Alset EHome Inc.’s subsidiaries was $ 71,378 74,260 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, 2022 filed on March 28, 2023. 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, 2022 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, 2023. 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. When the Company purchases properties but does not receive the assessment information from the county, the Company allocates the values between land and building based on the data of similar properties. The Company makes appropriate adjustments once the assessment from the county is received. At the same time, any necessary adjustments to depreciation expense are made in the income statement. On June 30, 2023 and December 31, 2022, the Company adjusted $ 0 4,791,997 0 0 0 0 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 June 30, 2023 or June 30, 2022. 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 2,300,000 300,000 309,372 309,219 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 June 30, 2023 or December 31, 2022. 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 six months ended on June 30, 2023, nor for the six months ended June 30, 2022. 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 agreed to sell approximately 242 single-family detached residential lots comprising a residential community in the city of Magnolia, Texas known as the “Lakes at Black Oak.” On November 28, 2022, the parties to the Agreement entered into an amendment to the Agreement (the “Amendment”). Pursuant to the Amendment, the parties agreed that the Buyer would purchase approximately 131 single-family detached residential lots, instead of 242 lots. This transaction closed on April 13, 2023. On March 16, 2023, 150 CCM Black Oak Ltd. (the “Seller”) entered into a Purchase and Sale Agreement (the “Purchase and Sale Agreement”) with Rausch Coleman Homes Houston, LLC, a Texas limited liability company (“Rausch Coleman”). Pursuant to the terms of the Purchase and Sale Agreement, the Seller has agreed to sell approximately 110 single-family detached residential lots which comprise a section of the Lakes at Black Oak. The transaction closed on May 15, 2023. On March 17, 2023, 150 CCM Black Oak Ltd. (the “Seller”) entered into a Purchase and Sale Agreement (the “Purchase and Sale Agreement”) with Davidson Homes, LLC, an Alabama limited liability company (“Davidson”). Pursuant to the terms of the Purchase and Sale Agreement, the Seller has agreed to sell approximately 189 single-family detached residential lots developed within section 2 of Black Oak project. The sale of the first 94 lots closed on May 30, 2023. The sale of remaining lots is estimated to close at the end of the year 2023. ● 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 year ended on December 31, 2022. The Company disposed this business to related party on January 13, 2023. For further details on this transaction, refer to Note 5 to Company’s Financial Statements – Related Party Transactions and Note 7 – Discontinued Operations. 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 and Black Oak project, which were essentially most of the revenue of the Company in 2022 and 2023, respectively, 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 year ended December 31, 2022, the Company did not recognize any deferred revenue and collected all rents due. The Company disposed this business to related party on January 13, 2023. For further details on this transaction, refer to Note 5 to Company’s Financial Statements – Related Party Transactions and Note 7 – Discontinued Operations. 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 0 37,725 0 116,088 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. The Company disposed this business to related party on January 13, 2023. For further details on this transaction, refer to Note 5 to Company’s Financial Statements – Related Party Transactions and Note 7 – Discontinued Operations. 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 has adopted these requirements, effective on the first day of year 2023. The application of the ASU 2021-08 has not had a material impact on our consolidated financial statements. |
CONCENTRATION OF CREDIT RISK
CONCENTRATION OF CREDIT RISK | 6 Months Ended |
Jun. 30, 2023 | |
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 June 30, 2023 and December 31, 2022, uninsured cash and restricted cash balances were $ 137,628 1,354,302 |
BUILDER DEPOSITS
BUILDER DEPOSITS | 6 Months Ended |
Jun. 30, 2023 | |
Builder Deposits | |
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 lots for a price of approximately $ 64 3 As part of the agreements, NVR was required to give a deposit in the amount of $ 5,600,000 100,000 220,000 0 0 |
NOTES PAYABLE
NOTES PAYABLE | 6 Months Ended |
Jun. 30, 2023 | |
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 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 | 6 Months Ended |
Jun. 30, 2023 | |
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. The Company receives advances from or loans to SeD Intelligent Home, the owner of 99.99 18 5 1,735,058 7,802 26,443,055 1,154,462 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 is to 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 $ 140,000 200,000 75,000 150,000 respectively, which were capitalized as part of Real Estate on the balance sheet as the services relate to property and project management. In June, 2022, MacKenzie Equity Partners accrued $ 50,000 25,000 25,000 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 0 720,000 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 June 30, 2023 and December 31, 2022, the balance of these advances was $ 230 0 Sale of Rental Business On December 9, 2022, Alset EHome Inc., a subsidiary of LiquidValue Development Inc. (the “Company”), entered into an agreement with Alset International Limited and Alset Inc. pursuant to which Alset EHome Inc. agreed to sell its subsidiary American Home REIT Inc. (“AHR”), which owns 112 single-family rental homes, to Alset Inc. The closing of the transaction contemplated by this agreement was completed on January 13, 2023. Alset EHome Inc. sold AHR for a total consideration of $ 26,250,933 13,900,000 11,350,933 1,000,000 274,204 376,167 Alset Inc. owns 85.4 99.9 |
STOCKHOLDERS_ EQUITY
STOCKHOLDERS’ EQUITY | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
STOCKHOLDERS’ EQUITY | 6. STOCKHOLDERS’ EQUITY As of June 30, 2023, there were 704,043,324 0.001 The Company did not authorize any distribution during six months ended June 30, 2023 and six months ended June 30, 2022. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 6 Months Ended |
Jun. 30, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | 7. DISCONTINUED OPERATIONS On December 9, 2022 Alset EHome Inc. (Alset EHome), a subsidiary of the Company, entered into stock purchase agreement with Alset International Limited (“Alset International”) and Alset Inc., pursuant to which Alset Inc. agreed to purchase all of the outstanding shares of American Home REIT Inc., a wholly owned subsidiary of Alset EHome. American Home REIT Inc. is the owner of 112 rental homes. Alset EHome is a majority-owned, indirect subsidiary of Alset International, while Alset International is a majority-owned, indirect subsidiary of Alset Inc. The purchase price of the transaction was established at $ 26,250,933 1,000,000 13,900,000 11,350,933 274,204 376,167 Under ASU 2014-08, a disposal transaction meets the definition of a discontinued operation if all of the following criteria are met: 1. The disposal group constitutes a component of an entity or a group of components of an entity. 2. The component of an entity (or group of components of an entity) meets the held-for-sale classification criteria, is disposed of by sale, or is disposed of other than by sale (e.g., “by abandonment, in an exchange measured based on the recorded amount of the nonmonetary asset relinquished, or in a distribution to owners in a spinoff”). 3. The disposal of a component of an entity (or group of components of an entity) “represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results”. American Home REIT Inc., is the owner of all rental properties of the Company’s rental business. The transaction described above is a disposal by sale and has a major effect on our financial results. Since it meets all of the test criteria set forth above, we have treated this disposal transaction as a discontinued operations in our financial statements. The closing of this transaction was completed on January 13, 2023. The composition of assets and liabilities included in discontinued operations are as follows: SCHEDULE OF DISCONTINUED OPERATIONS January 13, 2023 December 31, 2022 ($) ($) Assets: Real Estate Land $ - $ 4,908,590 Building and Improvements - 21,933,889 Real Estate Gross - 26,842,479 Less: Accumulated Depreciation - (973,257 ) Total Real Estate - 25,869,222 Cash - 1,186,658 Accounts Receivable - 34,743 Related Party Receivable - 4,800 Prepaid Expenses - 4,413 Total Assets $ - $ 27,099,836 Liabilities: Accounts Payable and Accrued Expenses $ - $ 1,112,932 Total Liabilities $ - $ 1,112,932 The aggregate financial results of discontinued operations were as follows: Period Ended January 13, 2023 Six Months Ended June 30, 2022 Income Statement Disclosures Attributable to Discontinued Operation Rental Revenue $ 81,767 $ 636,482 Expenses General and Administrative 31,315 383,801 Cost of Revenues 31,506 221,254 Depreciation Expense 29,121 313,753 Total Operating Expenses 91,942 918,808 Loss From Operations (10,175 ) (282,326 ) Bank Charges - 3 Total Other Expense - 3 Loss from Discontinued Operations $ (10,175 ) $ (282,329 ) The cash flows attributable to the discontinued operations are as follows: Period Ended January 13, 2023 Six Months Ended June 30, 2022 Cash Flows Attributable to Discontinued Operations Operating $ 10,175 $ 257,407 Investing - (1,324,978 ) Financing - - Net Change in Cash $ 10,175 $ (1,067,571 ) |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 8. COMMITMENTS AND CONTINGENCIES Leases The Company leases office space in Texas and Maryland. The lease for the Company’s Texas office was terminated on January 31, 2023 while the lease of the Company’s Maryland office expires on December 31, 2024 2,335 8,143 45,592 58,435 The balance of the operating lease right-of-use asset and operating lease liability as of June 30, 2023 was $ 66,893 66,414 108,950 110,431 The below table summarizes future payments due under these leases as of June 30, 2023. For the Years Ending June 30: SCHEDULE OF FUTURE PAYMENTS DUE UNDER LEASES 2024 71,982 Total Minimum Lease Payments $ 71,982 Less: Effect of Discounting (5,568 ) Present Value of Future Minimum Lease Payments 66,414 Less: Current Obligation under Lease 66,414 Long-term Lease Obligation $ - Lot Sale Agreements ● Ballenger Project On November 23, 2015, SeD Maryland Development LLC completed the $ 15,700,000 197 15,000,000 197 443 0 3 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 June 30, 2023 and December 31, 2022, the accrued balance due to NVR was $ 189,475 189,475 ● Black Oak Project - Agreement to Sell 189 Lots On March 17, 2023, the Seller entered into a Contract of Sale (the “Contract of Sale”) with Davidson Homes, LLC, an Alabama limited liability company (“Davidson Homes”). Pursuant to the terms of the Contract of Sale, the Seller has agreed to sell approximately 189 single-family detached residential lots comprising an additional section of the Lakes at Black Oak. The price of the lots and certain community enhancement fees the Seller will be entitled to receive are anticipated to equal an aggregate of $ 10,022,500 The closing of the transactions described in the Contract of Sale 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. Davidson Homes has agreed to purchase the lots in stages, comprising an initial closing of 94 1,425,000 5 The Seller shall be required to complete certain improvements at the property at the Seller’s cost prior to the closing of the remaining lots. 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 December 31, 2022, the security deposits held in the trust account were $ 271,480 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 9. SUBSEQUENT EVENTS The Company evaluated subsequent events and transactions that occurred after the balance sheet date through the filing date of our Form 10-Q for the three and six months ended June 30, 2023. Based upon this review, the Company did not identify any subsequent events that would have required adjustment or disclosure in the financial statements. |
NATURE OF OPERATIONS AND SUMM_2
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
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 at the current time 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 land development projects, included in our only reporting segment – real estate. 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. The Company was also in the business of renting homes, however, on December 9, 2022, Alset EHome entered into a Stock Purchase Agreement with Alset International Limited and Alset Inc., pursuant to which Alset EHome agreed to sell all of the shares of American Home REIT Inc., the company holding all of the 112 rental properties, to Alset Inc. For further details on this transaction, refer to Note 5 to Company’s Financial Statements – Related Party Transactions and Note 7 – Discontinued Operations. |
Going Concern | Going Concern To date, the Company has incurred operating losses since inception of $ 4,290,233 In late 2022 and early 2023, the Company entered into three contracts with builders to sell multiple lots from its Black Oak project. The sales contemplated by these contracts are contingent on certain conditions which the parties to such contracts will need to meet and are expected to generate approximately $ 22 18.1 The Company plans to continue its near-term focus on lot sales to regional and national builders. Funds from such lot sales will substantially improve the Company’s liquidity, strengthen its financial position and meet is working capital requirements. The Company will continue its business model of being flexible to market conditions and thus will entertain further sales of finished lots to builders with the highest and best pricing based on market demand. Concurrently, it will evaluate acquiring new homes from regional and national builders to further the build-to-rent business model for income producing product in surrounding markets within Houston and Maryland markets. These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classification of liabilities that might result from this uncertainty. |
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 REIT Inc. Maryland August 20, 2019 100 % Alset Solar Inc. Texas September 21, 2020 80 % AHR Black Oak One, LLC Delaware September 29, 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 June 30, 2023 and December 31, 2022, the aggregate non-controlling interest in Alset EHome Inc.’s subsidiaries was $ 71,378 74,260 |
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, 2022 filed on March 28, 2023. 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, 2022 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, 2023. |
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. When the Company purchases properties but does not receive the assessment information from the county, the Company allocates the values between land and building based on the data of similar properties. The Company makes appropriate adjustments once the assessment from the county is received. At the same time, any necessary adjustments to depreciation expense are made in the income statement. On June 30, 2023 and December 31, 2022, the Company adjusted $ 0 4,791,997 0 0 0 0 |
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 June 30, 2023 or June 30, 2022. |
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 2,300,000 300,000 309,372 309,219 |
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 June 30, 2023 or December 31, 2022. |
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 six months ended on June 30, 2023, nor for the six months ended June 30, 2022. 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 agreed to sell approximately 242 single-family detached residential lots comprising a residential community in the city of Magnolia, Texas known as the “Lakes at Black Oak.” On November 28, 2022, the parties to the Agreement entered into an amendment to the Agreement (the “Amendment”). Pursuant to the Amendment, the parties agreed that the Buyer would purchase approximately 131 single-family detached residential lots, instead of 242 lots. This transaction closed on April 13, 2023. On March 16, 2023, 150 CCM Black Oak Ltd. (the “Seller”) entered into a Purchase and Sale Agreement (the “Purchase and Sale Agreement”) with Rausch Coleman Homes Houston, LLC, a Texas limited liability company (“Rausch Coleman”). Pursuant to the terms of the Purchase and Sale Agreement, the Seller has agreed to sell approximately 110 single-family detached residential lots which comprise a section of the Lakes at Black Oak. The transaction closed on May 15, 2023. On March 17, 2023, 150 CCM Black Oak Ltd. (the “Seller”) entered into a Purchase and Sale Agreement (the “Purchase and Sale Agreement”) with Davidson Homes, LLC, an Alabama limited liability company (“Davidson”). Pursuant to the terms of the Purchase and Sale Agreement, the Seller has agreed to sell approximately 189 single-family detached residential lots developed within section 2 of Black Oak project. The sale of the first 94 lots closed on May 30, 2023. The sale of remaining lots is estimated to close at the end of the year 2023. ● 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 year ended on December 31, 2022. The Company disposed this business to related party on January 13, 2023. For further details on this transaction, refer to Note 5 to Company’s Financial Statements – Related Party Transactions and Note 7 – Discontinued Operations. |
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 and Black Oak project, which were essentially most of the revenue of the Company in 2022 and 2023, respectively, 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 year ended December 31, 2022, the Company did not recognize any deferred revenue and collected all rents due. The Company disposed this business to related party on January 13, 2023. For further details on this transaction, refer to Note 5 to Company’s Financial Statements – Related Party Transactions and Note 7 – Discontinued Operations. |
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 0 37,725 0 116,088 |
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. The Company disposed this business to related party on January 13, 2023. For further details on this transaction, refer to Note 5 to Company’s Financial Statements – Related Party Transactions and Note 7 – Discontinued Operations. |
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 has adopted these requirements, effective on the first day of year 2023. The application of the ASU 2021-08 has not had a material impact on our consolidated financial statements. |
NATURE OF OPERATIONS AND SUMM_3
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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 REIT Inc. Maryland August 20, 2019 100 % Alset Solar Inc. Texas September 21, 2020 80 % AHR Black Oak One, LLC Delaware September 29, 2021 100 % Robotic gHome Inc. Texas August 25, 2022 90 % |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
SCHEDULE OF DISCONTINUED OPERATIONS | The composition of assets and liabilities included in discontinued operations are as follows: SCHEDULE OF DISCONTINUED OPERATIONS January 13, 2023 December 31, 2022 ($) ($) Assets: Real Estate Land $ - $ 4,908,590 Building and Improvements - 21,933,889 Real Estate Gross - 26,842,479 Less: Accumulated Depreciation - (973,257 ) Total Real Estate - 25,869,222 Cash - 1,186,658 Accounts Receivable - 34,743 Related Party Receivable - 4,800 Prepaid Expenses - 4,413 Total Assets $ - $ 27,099,836 Liabilities: Accounts Payable and Accrued Expenses $ - $ 1,112,932 Total Liabilities $ - $ 1,112,932 The aggregate financial results of discontinued operations were as follows: Period Ended January 13, 2023 Six Months Ended June 30, 2022 Income Statement Disclosures Attributable to Discontinued Operation Rental Revenue $ 81,767 $ 636,482 Expenses General and Administrative 31,315 383,801 Cost of Revenues 31,506 221,254 Depreciation Expense 29,121 313,753 Total Operating Expenses 91,942 918,808 Loss From Operations (10,175 ) (282,326 ) Bank Charges - 3 Total Other Expense - 3 Loss from Discontinued Operations $ (10,175 ) $ (282,329 ) The cash flows attributable to the discontinued operations are as follows: Period Ended January 13, 2023 Six Months Ended June 30, 2022 Cash Flows Attributable to Discontinued Operations Operating $ 10,175 $ 257,407 Investing - (1,324,978 ) Financing - - Net Change in Cash $ 10,175 $ (1,067,571 ) |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
SCHEDULE OF FUTURE PAYMENTS DUE UNDER LEASES | The below table summarizes future payments due under these leases as of June 30, 2023. For the Years Ending June 30: SCHEDULE OF FUTURE PAYMENTS DUE UNDER LEASES 2024 71,982 Total Minimum Lease Payments $ 71,982 Less: Effect of Discounting (5,568 ) Present Value of Future Minimum Lease Payments 66,414 Less: Current Obligation under Lease 66,414 Long-term Lease Obligation $ - |
SCHEDULE OF ACCOUNTS OF ENTITIE
SCHEDULE OF ACCOUNTS OF ENTITIES (Details) | 6 Months Ended |
Jun. 30, 2023 | |
Subsidiary One [Member] | |
Name of consolidated subsidiary | Alset EHome Inc. |
State or other jurisdiction of incorporation or organization | Delaware |
Date of incorporation or formation | Feb. 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 | Aug. 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 | Jan. 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 | Mar. 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 | Mar. 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 | Jul. 07, 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 | Oct. 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 | Jun. 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 | Oct. 21, 2015 |
Attributable interest | 100% |
Subsidiary Ten [Member] | |
Name of consolidated subsidiary | SeD REIT Inc. |
State or other jurisdiction of incorporation or organization | Maryland |
Date of incorporation or formation | Aug. 20, 2019 |
Attributable interest | 100% |
Subsidiary Eleven [Member] | |
Name of consolidated subsidiary | Alset Solar Inc. |
State or other jurisdiction of incorporation or organization | Texas |
Date of incorporation or formation | Sep. 21, 2020 |
Attributable interest | 80% |
Subsidiary Twelve [Member] | |
Name of consolidated subsidiary | AHR Black Oak One, LLC |
State or other jurisdiction of incorporation or organization | Delaware |
Date of incorporation or formation | Sep. 29, 2021 |
Attributable interest | 100% |
Subsidiary Thirteen [Member] | |
Name of consolidated subsidiary | Robotic gHome Inc. |
State or other jurisdiction of incorporation or organization | Texas |
Date of incorporation or formation | Aug. 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 | 6 Months Ended | 163 Months Ended | |||||
Mar. 15, 2022 | Apr. 17, 2019 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Dec. 31, 2022 | |
Property, Plant and Equipment [Line Items] | ||||||||
Operating loss | $ 6,733,430 | $ (353,679) | $ 6,347,646 | $ (584,376) | $ 4,290,233 | |||
Proceeds from funds operations | 22,000,000 | |||||||
Proceeds from sales | 18,100,000 | |||||||
Minority interest | 71,378 | 71,378 | 71,378 | $ 74,260 | ||||
Adjustment between land and buildng | 0 | 0 | 0 | 4,791,997 | ||||
Adjustment depreciation expense | 0 | 0 | 0 | 0 | ||||
Cash equivalents | 0 | 0 | 0 | 0 | ||||
Deposit money market | 2,600,000 | 2,600,000 | 2,600,000 | |||||
Restricted cash | $ 309,372 | 309,137 | $ 309,372 | 309,137 | $ 309,372 | $ 309,219 | ||
Property plant and equipment, useful life | 3 years | 3 years | 3 years | |||||
Recognized revenue | $ 18,190,950 | 37,725 | $ 18,190,950 | 654,642 | ||||
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 | 10 years | 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 | 27 years 6 months | 27 years 6 months | |||||
Front Foot Benefit Assessment [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Revenues | $ 1,000,000 | |||||||
Recognized revenue | $ 0 | $ 37,725 | $ 0 | $ 116,088 | ||||
M&T Bank Loans [Member] | SeD Maryland Development LLC [Member] | Development Loan Agreement [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Debt instrument collateral amount | $ 2,300,000 | |||||||
Collateral for outstanding letters of credit | $ 300,000 | $ 2,600,000 | ||||||
SeD Intelligent Home Inc. [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Ownership percentage | 99.99% | 99.99% | 99.99% |
CONCENTRATION OF CREDIT RISK (D
CONCENTRATION OF CREDIT RISK (Details Narrative) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Risks and Uncertainties [Abstract] | ||
Uninsured cash balances | $ 137,628 | $ 1,354,302 |
BUILDER DEPOSITS (Details Narra
BUILDER DEPOSITS (Details Narrative) - USD ($) | 1 Months Ended | ||||
Nov. 30, 2015 | Jun. 30, 2023 | Dec. 31, 2022 | Apr. 28, 2020 | Jan. 03, 2019 | |
SeD Maryland Development LLC [Member] | Purchase Agreements [Member] | |||||
Purchase price | $ 64,000,000 | ||||
Escalation percentage | 3% | ||||
NVR, Inc [Member] | |||||
Deposits | $ 5,600,000 | $ 0 | $ 0 | $ 220,000 | $ 100,000 |
NOTES PAYABLE (Details Narrativ
NOTES PAYABLE (Details Narrative) - M&T Bank Loans [Member] - USD ($) | Mar. 15, 2022 | Apr. 17, 2019 | Jun. 30, 2023 | Dec. 31, 2022 | Feb. 11, 2021 |
Paycheck Protection Program [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal loan amount | $ 68,502 | ||||
Debt interest rate | 1% | ||||
Percentage for forgiven amount | 60% | ||||
SeD Maryland Development LLC [Member] | Development Loan Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal loan amount | $ 8,000,000 | ||||
Cumulative loan advance amount | $ 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 | ||||
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 | ||||
SeD Maryland Development LLC [Member] | Development Loan Agreement [Member] | Base Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate description | LIBOR plus 375 basis points |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||
Dec. 09, 2022 | Dec. 29, 2020 | Jan. 01, 2018 | Jun. 30, 2022 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
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 | $ 143,321 | $ 143,321 | $ 143,574 | ||||||||
Due to related party | $ 274,204 | ||||||||||
Alset EHome Inc [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Interest payable | $ 228,557 | $ 228,557 | 228,557 | ||||||||
Proceeds from sale of business | $ 26,250,933 | ||||||||||
Debt forgiveness, amount | 13,900,000 | ||||||||||
Promissory note, amount | 11,350,933 | ||||||||||
Purchase price of business acquisition | 1,000,000 | ||||||||||
Due to related party | $ 274,204 | ||||||||||
SeD Intelligent Home Inc. [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Interest rate | 18% | 18% | |||||||||
Interest payable | $ 7,802 | $ 7,802 | 1,154,462 | ||||||||
Ownership percentage | 99.99% | 99.99% | |||||||||
Debt instrument interest rate adjusted percentage | 5% | 5% | |||||||||
Alset Inc [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Ownership percentage | 85.40% | 85.40% | |||||||||
Interest receivable | $ 376,167 | $ 376,167 | |||||||||
Alset International [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Ownership percentage | 99.90% | 99.90% | |||||||||
SeD Home Limited [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Interest rate | 10% | 10% | |||||||||
Related Party [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Due from related parties | $ 230 | $ 230 | 0 | ||||||||
Promissory note, amount | 26,443,055 | ||||||||||
Related Party [Member] | Consulting Agreement [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Due to related party | 25,000 | 25,000 | 25,000 | ||||||||
Related Party [Member] | Alset EHome Inc [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Due to related party | 0 | 0 | 0 | ||||||||
Related Party [Member] | SeD Intelligent Home Inc. [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Due to related party | 1,735,058 | 1,735,058 | 26,443,055 | ||||||||
Charles MacKenzie [Member] | Consulting Agreement [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Professional fees | $ 20,000 | 25,000 | |||||||||
Management fees | $ 75,000 | $ 140,000 | 150,000 | $ 200,000 | |||||||
Bonus payment | $ 50,000 | ||||||||||
Alset International [Member] | Management Service Agreement [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Professional fees | $ 30,000 | ||||||||||
Consulting expenses | $ 0 | $ 720,000 | |||||||||
Alset International [Member] | Management Service Agreement [Member] | One-Time Payment [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Professional fees | $ 360,000 |
STOCKHOLDERS_ EQUITY (Details N
STOCKHOLDERS’ EQUITY (Details Narrative) - $ / shares | Jun. 30, 2023 | Dec. 31, 2022 |
Equity [Abstract] | ||
Common stock, shares issued | 704,043,324 | 704,043,324 |
Common stock, shares outstanding | 704,043,324 | 704,043,324 |
Common stock, par value | $ 0.001 | $ 0.001 |
SCHEDULE OF DISCONTINUED OPERAT
SCHEDULE OF DISCONTINUED OPERATIONS (Details) - USD ($) | 6 Months Ended | |||
Jan. 13, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Assets: | ||||
Total Assets | $ 27,099,836 | |||
Liabilities: | ||||
Total Liabilities | 1,112,932 | |||
Cash Flows Attributable to Discontinued Operations | ||||
Operating | 10,175 | $ 257,407 | ||
Investing | (1,324,978) | |||
Financing | ||||
Discontinued Operations, Disposed of by Sale [Member] | ||||
Assets: | ||||
Land | 4,908,590 | |||
Building and Improvements | 21,933,889 | |||
Real Estate Gross | 26,842,479 | |||
Less: Accumulated Depreciation | (973,257) | |||
Total Real Estate | 25,869,222 | |||
Cash | 1,186,658 | |||
Accounts Receivable | 34,743 | |||
Related Party Receivable | 4,800 | |||
Prepaid Expenses | 4,413 | |||
Total Assets | 27,099,836 | |||
Liabilities: | ||||
Accounts Payable and Accrued Expenses | 1,112,932 | |||
Total Liabilities | $ 1,112,932 | |||
Income Statement Disclosures Attributable to Discontinued Operation | ||||
Rental Revenue | 81,767 | 636,482 | ||
General and Administrative | 31,315 | 383,801 | ||
Cost of Revenues | 31,506 | 221,254 | ||
Depreciation Expense | 29,121 | 313,753 | ||
Total Operating Expenses | 91,942 | 918,808 | ||
Loss From Operations | (10,175) | (282,326) | ||
Bank Charges | 3 | |||
Total Other Expense | 3 | |||
Loss from Discontinued Operations | (10,175) | (282,329) | ||
Cash Flows Attributable to Discontinued Operations | ||||
Operating | 10,175 | 257,407 | ||
Investing | (1,324,978) | |||
Financing | ||||
Net Change in Cash | $ 10,175 | $ (1,067,571) |
DISCONTINUED OPERATIONS (Detail
DISCONTINUED OPERATIONS (Details Narrative) - USD ($) | 3 Months Ended | ||
Dec. 09, 2022 | Mar. 31, 2023 | Jun. 30, 2023 | |
Due to related party | $ 274,204 | ||
Alset EHome Inc [Member] | |||
Proceeds from sale of business | $ 26,250,933 | ||
Purchase price of business acquisition | 1,000,000 | ||
Debt forgiveness, amount | 13,900,000 | ||
Promissory note, amount | 11,350,933 | ||
Due to related party | $ 274,204 | ||
Alset Inc [Member] | |||
Interest receivable | $ 376,167 |
SCHEDULE OF FUTURE PAYMENTS DUE
SCHEDULE OF FUTURE PAYMENTS DUE UNDER LEASES (Details) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Commitments and Contingencies Disclosure [Abstract] | ||
2024 | $ 71,982 | |
Total Minimum Lease Payments | 71,982 | |
Less: Effect of Discounting | (5,568) | |
Present Value of Future Minimum Lease Payments | 66,414 | $ 110,431 |
Less: Current Obligation under Lease | 66,414 | |
Long-term Lease Obligation |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details Narrative) | 6 Months Ended | |||||||
May 30, 2023 USD ($) | Mar. 17, 2023 USD ($) Integer | Dec. 10, 2015 Integer | Jun. 30, 2023 USD ($) Integer | Jun. 30, 2022 USD ($) Integer | Dec. 31, 2022 USD ($) | Nov. 23, 2015 USD ($) a | May 28, 2014 USD ($) a | |
Loss Contingencies [Line Items] | ||||||||
Lease expiration date | Dec. 31, 2024 | |||||||
Payments for rent | $ 45,592 | $ 58,435 | ||||||
Operating lease right-of-use asset | 66,893 | $ 108,950 | ||||||
Operating lease liability | $ 66,414 | 110,431 | ||||||
Escrow deposit | $ 1,425,000 | |||||||
Sale of lots | $ 5,000,000 | |||||||
Security deposits | 271,480 | |||||||
NVR, Inc [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Number of lots | Integer | 0 | 3 | ||||||
NVR, Inc [Member] | Related Party [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Due to related party | $ 189,475 | $ 189,475 | ||||||
Davidson Homes, LLC [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Entity transaction costs | $ 10,022,500 | |||||||
Lot Purchase Agreement [Member] | NVR, Inc [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Number of lots | Integer | 443 | |||||||
SeD Maryland Development LLC [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Entity transaction costs | $ 15,700,000 | |||||||
Area of land | a | 197 | |||||||
RBG Family LLC [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Entity transaction costs | $ 15,000,000 | |||||||
Area of land | a | 197 | |||||||
Minimum [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Payments for rent | 2,335 | |||||||
Minimum [Member] | Davidson Homes, LLC [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Number of lots | Integer | 94 | |||||||
Maximum [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Payments for rent | $ 8,143 |