Exhibit 99.2
TURNKEY HOME BUYERS USA, INC.
INTERIM FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTHS ENDED
JUNE 30, 2015
CONTENTS
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Balance Sheets | 1 |
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Statements of Operations | 2 |
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Statement of Stockholders’ Equity | 3 |
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Statements of Cash Flows | 4 |
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Notes to the Financial Statements | 5 |
Turnkey Home Buyers USA, Inc.
Balance Sheets
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| | June 30, 2015 | | | December 31, 2014 | |
Assets | | | | | | |
Cash | | $ | 29,347 | | | $ | 103,324 | |
Real estate owned | | | 114,169 | | | | 51,363 | |
Due from related parties | | | 231,000 | | | | 227,100 | |
Prepaid insurance | | | - | | | | 1,328 | |
Total assets | | $ | 374,516 | | | $ | 383,115 | |
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Liabilities and Stockholders' Equity | | | | | | | | |
Current Liabilities | | | | | | | | |
Accounts payable & accrued expenses | | $ | 7,673 | | | $ | - | |
Total Current Liabilities | | | 7,673 | | | | - | |
Total liabilities | | | 7,673 | | | | - | |
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Stockholders' Equity | | | | | | | | |
Preferred stock, no par value, 5,000,000 shares authorized; issued and outstanding, none at December 31, 2014. | | | | | | | | |
Common stock, no par value 40,000,000 shares authorized; issued and outstanding, 8,960,000 and 5,002,500 at June 30, 2015 and December 31, 2014, respectively. | | | 800,600 | | | | 500,250 | |
Accumulated deficit | | | (433,757 | ) | | | (117,135 | ) |
Total stockholders' equity | | | 366,843 | | | | 383,115 | |
Total liabilities and stockholders' Equity | | $ | 374,516 | | | $ | 383,115 | |
(The accompanying notes are an integral part of these financial statements)
1
Turnkey Home Buyers USA, Inc.
Statements of Operations
For the Three and Six Months Ended June 30, 2015
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| | Three Months Ended June 30, 2015 | | | Six Months Ended June 30, 2015 | |
Income | | | | | | |
Revenue | | $ | - | | | $ | 2,698 | |
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Expenses | | | | | | | | |
General and administrative | | | 95,153 | | | | 228,884 | |
Management fees - related party | | | 57,540 | | | | 90,436 | |
Total operating expenses | | | 152,693 | | | | 319,320 | |
Income before (provision) benefit from income taxes | | | (152,693 | ) | | | (316,622 | ) |
(Provision) benefit from income taxes | | | - | | | | - | |
Net loss | | $ | (152,693 | ) | | $ | (316,622 | ) |
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Basic and diluted loss per common share | | $ | (0.02 | ) | | $ | (0.04 | ) |
Weighted average common shares outstanding | | | 8,470,102 | | | | 7,622,268 | |
(The accompanying notes are an integral part of these financial statements)
2
Turnkey Home Buyers USA, Inc.
Statement of Stockholders' Equity
For the Six Months Ended June 30, 2015 and the Period From September 12, 2014 (Inception) through December 31, 2014
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| | | | | | | | | | | Total | |
| | Common Stock | | | Accumulated | | | Stockholders' | |
| | Shares | | | Amount | | | Deficit | | | Equity | |
Balance, December 31, 2013 | | | - | | | $ | - | | | $ | - | | | $ | - | |
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Sale of common stock | | | 5,002,500 | | | | 500,250 | | | | - | | | | 500,250 | |
Net Income (Loss) | | | - | | | | - | | | | (117,135 | ) | | | (117,135 | ) |
Balance, December 31, 2014 | | | 5,002,500 | | | | 500,250 | | | | (117,135 | ) | | | 383,115 | |
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Sale of common stock | | | 3,170,000 | | | | 300,350 | | | | - | | | | 300,350 | |
Net Income (Loss) | | | - | | | | - | | | | (316,622 | ) | | | (316,622 | ) |
Balance, June 30, 2015 | | | 8,172,500 | | | $ | 800,600 | | | $ | (433,757 | ) | | $ | 366,843 | |
(The accompanying notes are an integral part of these financial statements)
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Turnkey Home Buyers USA, Inc.
Statements of Cash Flows
For the Six Months Ended June 30, 2015
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Cash flows from operating activities: | | | |
Net loss | | $ | (316,622 | ) |
Adjustments to reconcile net loss to net cash provided (used in) operating activities: | | | | |
Changes in assets and liabilities: | | | | |
(Increase) decrease in prepaid management fees - related party | | | (3,900 | ) |
(Increase) decrease in prepaid expenses | | | 1,328 | |
Increase (decrease) in accounts payable and accrued expenses | | | 7,673 | |
Net cash provided by (used) in operating activities | | | (311,521 | ) |
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Cash flows from investing activities: | | | | |
Additions to real estate | | | (62,806 | ) |
Net cash provided by (used) in investing activities | | | (62,806 | ) |
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Cash flows from financing activities: | | | | |
Proceeds from the sale of common stock | | | 300,350 | |
Net cash provided by (used) in financing activities | | | 300,350 | |
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Increase (decrease) in cash | | | (73,977 | ) |
Cash and cash equivalents at beginning of period | | | 103,324 | |
Cash and cash equivalents at end of period | | $ | 29,347 | |
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Supplemental disclosures of cash flow information | | | | |
Cash paid during the year for: | | | | |
Taxes paid | | $ | - | |
Interest paid | | $ | - | |
(The accompanying notes are an integral part of these financial statements)
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TURNKEY HOME BUYERS USA, INC.
NOTES TO UNAUDITED FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2015
Note 1 - Organization and Nature of Operations
Turnkey Home Buyers USA, Inc. (“Turnkey”, the “Company”) was incorporated on September 12, 2014 in Nevada. Turnkey offers clients a full suite of services for residential and commercial real estate transactions including, coaching and mentoring real estate investors to improve their returns, leasing and sales of quality turnkey rental properties, and brokerage of residential and commercial transactions.
Note 2 – Going Concern
As reflected in the accompanying financial statements, during the six months ended June 30, 2015, the Company had a net loss of $316,622 and used $311,521 of cash in operations and had a stockholders’ deficit of $433,757.
The Company has yet to generate revenue. Since inception, the Company has funded its short falls through related party advances and sales of common stock. The Company's future operations are dependent upon its ability to increase revenues along with additional external funding as needed.
There can be no assurance that the Company will be successful in its efforts and this raises substantial doubt about the Company’s future. Should the Company be unable to obtain adequate financing or generate sufficient revenue in the future, the Company’s business, results of operations, liquidity and financial condition would be materially and adversely harmed, and may not be able to continue as a going concern.
Note 3 – Real Estate Owned
During the six months ended June 30, 2015, the Company purchased a residential property and made improvements resulting in a $62,806 increase in the carry value of real estate owned and bringing the total properties owned to two.
Note 4 – Due From Related Parties
Due from related parties represents noninterest bearing advances to certain related parties primarily related to the advance payment of management fees.
Note 5 – Related Party Transactions
During the three and six months ended June 30, 2015, the Company paid $57,540 and $90,436, respectively, in fees for accounting and other consulting work to related parties. During the period from September 12, 2014 through December 31, 2014, the Company recognized related party fees totaling $64,000.
Note 6 – Subsequent Events
On July 6, 2015, Train Travel Holdings, Inc., a Nevada corporation (“TTHX”) completed a Share Exchange Agreement (the “Agreement”) with Turnkey Home Buyers USA, Inc., a Florida corporation (“Turnkey”), TBG Holdings Corporation, a Florida corporation (“TBG”), each of the Turnkey shareholders (the “Shareholders”), and Train Travel Holdings, Inc., a Florida corporation (“TTH”).
Pursuant to the terms of the Agreement, Turnkey shareholders transferred to TTHX all of the issued and outstanding shares of capital stock of Turnkey’s shareholders. In exchange for the Turnkey shares, TTHX transferred 15,337,500 shares of common stock to Turnkey shareholders. Prior to closing, TBG, a principal shareholder of TTHX and Turnkey, tendered to Turnkey for cancellation 15,000,000 shares of Turnkey common stock. Robert Blair, a principal of Turnkey, was a TBG shareholder.
In January 2015, the Company purchased a residential property for $36,000. From January 2015 through August 2015, the Company made improvements to the property totaling approximately $27,011. On October 9, 2015, the Company sold the property for net proceeds of $63,279 resulting in a gain on the disposition of the property of $286.
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