Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | May. 12, 2016 | |
Document And Entity Information | ||
Entity Registrant Name | T.A.G. Acquisitions Ltd. | |
Entity Central Index Key | 1,610,785 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity a Well-known Seasoned Issuer | No | |
Entity a Voluntary Filer | No | |
Entity's Reporting Status Current | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 6,300,000 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2,016 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheet (unaudited) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Current Assets: | ||
Cash | $ 74,633 | $ 553,427 |
Prepaid Interest | 880,000 | 1,210,000 |
Total current assets | 954,633 | 1,763,427 |
Investments in real estate | 4,479,913 | 3,293,840 |
Deposits | 242,500 | 73,250 |
TOTAL ASSETS | 5,677,046 | 5,130,517 |
Current Liabilities: | ||
Accounts payable | 195,257 | 26,629 |
Accrued expenses | 25,870 | 15,184 |
Accrued payroll to stockholder | 121,133 | 121,383 |
Notes payable, net of discount of $142,766 and $196,011 | 6,198,724 | 5,252,979 |
Advances from stockholder | 142,671 | 260,190 |
Total current liabilities | 6,683,655 | 5,676,365 |
Notes payable, net of current portion | 18,500 | 20,000 |
TOTAL LIABILITIES | $ 6,702,155 | $ 5,696,365 |
STOCKHOLDERS' DEFICIT: | ||
Preferred stock, $0.0001 par value, 20,000,000 shares authorized, 0 shares issued and outstanding | ||
Common stock, $0.0001 par value, 100,000,000 shares authorized, 6,300,000 and 6,300,000 shares issued and outstanding | $ 630 | $ 630 |
Additional paid-in capital | 230,460 | 230,460 |
Accumulated deficit | (1,256,199) | (796,938) |
Total stockholders' deficit | (1,025,109) | (565,848) |
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $ 5,677,046 | $ 5,130,517 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheet (unaudited) (Parenthetical) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Unamortized debt discount | $ 142,766 | $ 196,011 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, authorized | 20,000,000 | 20,000,000 |
Preferred stock, issued | 0 | 0 |
Preferred stock, outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, authorized | 100,000,000 | 100,000,000 |
Common stock, issued | 6,300,000 | 6,300,000 |
Common stock, outstanding | 6,300,000 | 6,300,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Statement [Abstract] | ||
Revenue | $ 74,195 | |
Operating expenses: | ||
General and administrative expenses | 284,778 | $ 224,873 |
Loss from operations | (210,583) | $ (224,873) |
Other expense | ||
Interest expense | (248,678) | |
Loss before income taxes | $ (459,261) | $ (224,873) |
Income taxes | ||
Net loss | $ (459,261) | $ (224,873) |
Weighted average shares outstanding : | ||
Basic (in shares) | 6,300,000 | 3,500,000 |
Diluted (in shares) | 6,300,000 | 3,500,000 |
Loss per share | ||
Basic (in dollars per share) | $ (0.07) | $ (0.06) |
Diluted (in dollars per share) | $ (0.07) | $ (0.06) |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
OPERATING ACTIVITIES: | ||
Net loss | $ (459,261) | $ (224,873) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Amortization of debt issuance costs | 53,245 | |
Change in current assets and liabilities: | ||
Prepaid interest | 330,000 | |
Accounts payable | 168,628 | $ 5,537 |
Accrued expenses | 10,686 | 2,842 |
Accrued payroll to stockholder | (250) | 52,063 |
Net cash provided by (used in) operating activities | 103,048 | $ (164,431) |
INVESTING ACTIVITIES: | ||
Payments for investments in real estate | $ (1,186,073) | |
Increase in cash overdraft | $ 1,047 | |
Payments for deposits | $ (169,250) | (5,000) |
Net cash used in investing activities | (1,355,323) | (3,953) |
FINANCING ACTIVITIES: | ||
Advances from (repayments to) stockholder | (117,519) | $ 102,800 |
Proceeds from issuance of notes payable | 950,000 | |
Payments on notes payable | $ (59,000) | |
Capital contribution by stockholder | $ 65,584 | |
Net cash provided by financing activities | $ 773,481 | $ 168,384 |
NET DECREASE IN CASH | (478,794) | |
CASH, BEGINNING BALANCE | 553,427 | |
CASH, ENDING BALANCE | $ 74,633 | |
CASH PAID FOR: | ||
Interest | ||
Income taxes |
Organization and Basis of Prese
Organization and Basis of Presentation | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | Note 1 Organization and Basis of Presentation The unaudited condensed consolidated financial statements were prepared by T.A.G. Acquisitions Ltd. (the Company), pursuant to the rules and regulations of the Securities Exchange Commission (SEC). The information furnished herein reflects all adjustments (consisting of normal recurring accruals and adjustments) which are, in the opinion of management, necessary to fairly present the operating results for the respective periods. Certain information and footnote disclosures normally present in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) were omitted pursuant to such rules and regulations. These unaudited condensed financial statements should be read in conjunction with the audited financial statements and footnotes included in the Companys Annual Report on Form 10-K filed with the SEC on April 11, 2016. The results for the three months ended March 31, 2016, are not necessarily indicative of the results to be expected for the year ending December 31, 2016. Description of Business T.A.G. Acquisitions Ltd. (the Company) (formerly Surprise Valley Acquisition Corporation) was incorporated on May 20, 2014 under the laws of the State of Delaware to engage in any lawful corporate undertaking, including, but not limited to, selected mergers and acquisitions. On November 17, 2014, the Company changed its name to T.A.G. Acquisitions, Ltd. and filed the amendment with the State of Delaware. The Company is in the business of seeking out exceptional conversion opportunities, large multi-family and commercial office properties (as opposed to hospitality, retail, or industrial investment properties), for which significant value and profitability can be realized through the carefully managed aesthetic improvements, strategic marketing, and restructured management. The Company calls this repositioning. The Companys sales and marketing strategies are also focusing on ways in which pricing concepts are marketed to its customers. Perks, privileges, tie-ins to strategic marketing partners, packages, discounts, and loyalty rewards for longer-term lessees are all under consideration as techniques to acquire new lessees and drive revenue. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2 - Summary of Significant Accounting Policies Basis of presentation The summary of significant accounting policies presented below is designed to assist in understanding the Company's unaudited condensed consolidated financial statements. Such unaudited condensed consolidated financial statements and accompanying notes are the representations of the Company's management, who are responsible for their integrity and objectivity. These accounting policies conform to accounting principles generally accepted in the United States of America ("GAAP") in all material respects, and have been consistently applied in preparing the accompanying unaudited condensed consolidated financial statements. Principles of Consolidation The accompanying consolidated financial statements represent the consolidated financial position and results of operations of the Company and include the accounts and results of operations of the Company, Waydell 32-38 LLC (Waydell), Creekside by TAG LLC (Creekside) and Tall Pines by TAG LLC (Tall Pines). The results of operations for Waydell have only been included since the date of acquisition of August 13, 2015 and for Creekside and Tall Pines have only been included since their inception on October 22, 2015. All intercompany transactions and balances have been eliminated in consolidation. Use of estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Cash Cash and cash equivalents include cash on hand and on deposit at banking institutions as well as all highly liquid short-term investments with original maturities of 90 days or less. The Company did not have cash equivalents as of March 31, 2016 and December 31, 2015. Concentration of risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash. The Company places its cash with high quality banking institutions As of March 31, 2016 and December 31, 2015, the Company had cash balances in excess of the Federal Deposit Insurance Corporation limit of $0 and $384,234, respectively. Earnings (loss) per share Basic earnings (loss) per common share is computed by dividing net income (loss) available to common shareholders by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings (loss) per common share is computed by dividing income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if potentially dilutive securities had been issued. There were no potentially dilutive securities outstanding during the periods presented. Income taxes The Company records income taxes under the asset and liability method, whereby deferred tax assets and liabilities are recognized based on the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and attributable to operating loss and tax credit carry forwards. Accounting standards regarding income taxes requires a reduction of the carrying amounts of deferred tax assets by a valuation allowance, if based on the available evidence, it is more likely than not that such assets will not be realized. Accordingly, the need to establish valuation allowances for deferred tax assets is assessed at each reporting period based on a more-likely-than-not realization threshold. This assessment considers, among other matters, the nature, frequency and severity of current and cumulative losses, forecasts of future profitability, the duration of statutory carry forward periods, the Companys experience with operating loss and tax credit carry forwards not expiring unused, and tax planning alternatives. The Company recorded valuation allowances on the net deferred tax assets. Management will reassess the realization of deferred tax assets based on the accounting standards for income taxes each reporting period. To the extent that the financial results of operations improve and it becomes more likely than not that the deferred tax assets are realizable, the Company will be able to reduce the valuation allowance. Significant judgment is required in evaluating the Companys tax positions and determining its provision for income taxes. During the ordinary course of business, there are many transactions and calculations for which the ultimate tax determination is uncertain. Accounting standards regarding uncertainty in income taxes provides a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount which is more than 50% likely, based solely on the technical merits, of being sustained on examinations. The Company considers many factors when evaluating and estimating its tax positions and tax benefits, which may require periodic adjustments and which may not accurately anticipate actual outcomes. Fair value of financial instruments The Company follows guidance for accounting for fair value measurements of financial assets and financial liabilities and for fair value measurements of nonfinancial items that are recognized or disclosed at fair value in the financial statements on a recurring basis. Additionally, the Company adopted guidance for fair value measurement related to nonfinancial items that are recognized and disclosed at fair value in the financial statements on a nonrecurring basis. The guidance establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability. The carrying amounts of financial assets such as cash approximate their fair values because of the short maturity of these instruments. The Company had no such financial instruments outstanding as of March 31, 2016 and December 31, 2015. Recent accounting pronouncements In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09) In August, 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date. In February, 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis. In September, 2015, the FASB issued ASU No. 2015-16, Business Combinations (Topic 805). In February 2016, the FASB issued ASU No. 2016-02, Leases In March 2016, the FASB issued an ASU amending the accounting for stock-based compensation and requiring excess tax benefits and deficiencies to be recognized as a component of income tax expense rather than equity. This guidance also requires excess tax benefits to be presented as an operating activity on the statement of cash flows and allows an entity to make an accounting policy election to either estimate expected forfeitures or to account for them as they occur. The ASU is effective for reporting periods beginning after December 15, 2016, with early adoption permitted. The Company is currently evaluating the impact of the ASU; however, it does not expect the ASU will have a material impact on our consolidated financial statements. Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company's present or future financial statements. |
Going Concern
Going Concern | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Going Concern | Note 3 Going Concern The Company has generated minimal revenue since inception and has sustained operating losses during the three months ended March 31, 2016 and the year ended December 31, 2015 of $459,261 and $796,231, respectively. As of March 31, 2016 and December 31, 2015, the Company had an accumulated deficit of $1,256,199 and $796,938, respectively and a working capital deficit of $5,729,002 and $3,912,938, respectively. The Company's continuation as a going concern is dependent on its ability to generate sufficient cash flows from operations to meet its obligations and/or obtaining additional financing from its majority stockholder or other sources, as may be required. The accompanying financial statements have been prepared assuming that the Company will continue as a going concern; however, the above condition raises substantial doubt about the Company's ability to do so. The financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result should the Company be unable to continue as a going concern. In order to maintain its current level of operations, the Company will require additional working capital from either cash flow from operations, from the sale of its equity or from long-term debt financing. The Company has recently purchased two properties in Georgia and have obtained $11 million in short-term financing (which includes line of credit of $5,680,000) to purchase and renovate the two properties. The Company is currently seeking to raise capital through the sale of its equity securities. However, there can be no assurances that the Company will be successful raising capital through the sale of its equity securities. If the Company is unable to acquire additional working capital, it will be required to significantly reduce its current level of operations. |
Investments in Real Estate
Investments in Real Estate | 3 Months Ended |
Mar. 31, 2016 | |
Investments In Real Estate | |
Investments in Real Estate | Note 4 Investments in Real Estate On August 13, 2015, the Company entered into a securities purchase agreement with Waydell whereby the Company purchased a 100% interest in Waydell for 300,000 shares of the Companys common stock. Waydell is a real estate holding company that owns and manages the real estate property located at 32-38 Waydell Street, Newark, New Jersey. On June 25, 2015, Waydell purchased the property in Newark, New Jersey for $150,000. The 300,000 shares issued to Moses Schwartz in connection with this acquisition were valued at $150,000 which is the amount paid for the only asset owned by Waydell that was recently purchased on June 25, 2015 real property located at 32-38 Waydell Street, Newark, New Jersey. Waydell had no liabilities. In addition to the acquisition of this property, the Company also incurred $18,325 in connection with the development of this property. The carrying value of this property at March 31, 2016 and December 31, 2015 is $168,325 and $165,325, respectively. The increase was due to additional development costs incurred during the quarter. On November 20, 2015, through its newly created subsidiaries, Creekside and Tall Pines, the Company purchased properties in Decatur, GA and Atlanta, GA respectively. Both of these properties are in need of significant renovations and did not have any significant operating activities prior to the acquisition and as a result no pro forma financial disclosures have been provided. The initial purchase price for the Creekside and Tall Pines properties was $1,820,000 and $480,000, respectively. The purchases were financed from the issuance of notes payable (See Note 5). Both of these properties are being renovated and the cost to renovate the properties is being capitalized. In addition, the Company has issued notes payable to financing the initial purchase of the properties and the renovations; and therefore has capitalized interest on these properties. Total capitalized interest included in Investments in Real Estate at March 31, 2016 and December 31, 2015 was $181,576 and $45,153. Cheskel Meisels, the CEO for the Company, personally guaranteed repayment of the loans. The Company estimates the cost of the renovations to the properties to range between $6,000,000 and $7,500,000. A summary of the Companys real estate holdings at March 31, 2016 and December 31, 2015 is below: March 31, December 31, 2016 2015 32-38 Waydell Street Newark, NJ $ 168,325 $ 165,325 3000 Ember Drive Decatur, GA 3,799,292 2,633,766 3200 Cushman Circle Atlanta, GA 512,296 494,749 $ 4,479,913 $ 3,293,840 |
Notes Payable
Notes Payable | 3 Months Ended |
Mar. 31, 2016 | |
Notes Payable [Abstract] | |
Notes Payable | Note 5 Notes Payable Notes payable at March 31, 2016 and December 31, 2015 consist of the following: March 31, December 31, 2016 2015 Note payable dated June 5, 2015; unsecured; interest at 0% per annum; due June 5, 2016 $ 20,000 $ 20,000 Note payable dated April 15, 2015; unsecured; interest at 0% per annum; monthly payments of $500; due April 15,2020 24,500 26,000 Note payable dated July 15, 2015; unsecured; interest at 10% per annum; due July 1, 2016 28,600 28,600 Note payable dated October 1, 2015; unsecured; interest at 10% per annum; due October 1, 2016 16,890 74,390 Notes payable to Sharestates Investing, LLC, an unrelated party, dated November 20, 2015; secured by Creekside and Tall Pines properties and guaranteed by the Company's CEO; interest at 12% per annum; due November 30, 2016 6,270,000 5,320,000 Total 6,359,990 5,468,990 Note discount (142,766 ) (196,011 ) Net amount 6,217,224 5,272,979 Less current portion (6,198,724 ) (5,252,979 ) Long-term portion $ 18,500 $ 20,000 The Company issued four commercial promissory notes and four commercial non-revolving line of credit promissory notes to Sharestates Investing, LLC for an aggregate of $11,000,000 in connection with the purchase of the Creekside and Tall Pines properties. The interest rate for all the notes is 12% and all the notes are due on November 30, 2016. The four commercial promissory notes were issued at closing and totaled $5,320,000. The aggregate of the four commercial non-revolving line of credit promissory notes of $5,680,000 is available for the Company to draw down for the renovations of the Creekside and Tall Pines properties. During the three months ended March 31, 2016, the Company drew down $950,000 on the commercial non-revolving line of credit promissory notes. In connection with the issuances of these notes totaling $11,000,000, the Company was required to pay debt issuance costs of 2% of the total balance or $220,000. These debt issuance costs are shown as a note discount and amortized over the term of the notes. During the three months ended March 31, 2016, the Company amortized $53,245 of the debt issuance costs which is included in interest expense. Also, the Company was required to prepay interest for one year or $1,320,000 on the entire $11,000,000 credit facilities. During the three months ended March 31, 2016, the Company amortized $330,000 of the prepaid interest to interest expense. As of March 31, 2016 and December 31, 2015, the prepaid interest balance was $880,000 and $1,210,000, respectively. Aggregate future maturities of notes payable at March 31, 2016 are as follows: Year ending March 31, 2017 $ 6,198,724 2018 6,000 2019 6,000 2020 6,000 2021 500 $ 6,217,224 |
Advances from stockholder
Advances from stockholder | 3 Months Ended |
Mar. 31, 2016 | |
Related Party Transactions [Abstract] | |
Advances from stockholder | Note 6 Advances from stockholder At March 31, 2016 and December 31, 2015 the Company had advances from its majority stockholder of $121,133 and $121,383. These advances are non-interest bearing and payable upon demand. |
Agreements to Purchase Real Est
Agreements to Purchase Real Estate | 3 Months Ended |
Mar. 31, 2016 | |
Agreements To Purchase Real Estate | |
Agreements to Purchase Real Estate | Note 7 Agreements to Purchase Real Estate On December 15, 2015, the Company entered into an agreement to purchase property located at 81 Clay Street, Newark, New Jersey for $4,000,000, and paid a deposit of $50,000 prior to December 31, 2015. The Company is currently negotiating an extension on the expected closing date in order to secure additional financing for the purchase. The parties have tentatively agreed to a closing date of June 30, 2016. In the event a formal agreement is not reached, $25,000 of the deposit will be returned to the Company. On February 23, 2016, the Company entered into an Agreement of Assignment Bid that gives the Company the right to purchase a property in Holliswood, New York for $999,500, plus finders fees of $200,500, for an aggregate purchase price of $1,200,000. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 8 Subsequent Events On April 8, 2016, the Company, through its newly created subsidiary Santiago Acquisitions LLC, completed its closing in connection with the purchase of the property known as 87-48 Santiago Street, Holliswood, NY, pursuant to an Agreement of Assignment of Bid, dated February 23, 2016, between Nison Badalov and the Company. The purchase price was $999,500, plus fees and costs related to the closing of $91,436, for an aggregate purchase price of $1,090,936. The Company secured a loan in the principal amount of $840,000 at a twelve (12%) percent interest rate, due on April 30, 2017, from SHARESTATES LLC to cover the aggregate purchase price. Cheskel Meisels, the CEO for the Company, personally guaranteed repayment of the loan. |
Summary of Significant Accoun14
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The summary of significant accounting policies presented below is designed to assist in understanding the Company's unaudited condensed consolidated financial statements. Such unaudited condensed consolidated financial statements and accompanying notes are the representations of the Company's management, who are responsible for their integrity and objectivity. These accounting policies conform to accounting principles generally accepted in the United States of America ("GAAP") in all material respects, and have been consistently applied in preparing the accompanying unaudited condensed consolidated financial statements. |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements represent the consolidated financial position and results of operations of the Company and include the accounts and results of operations of the Company, Waydell 32-38 LLC (Waydell), Creekside by TAG LLC (Creekside) and Tall Pines by TAG LLC (Tall Pines). The results of operations for Waydell have only been included since the date of acquisition of August 13, 2015 and for Creekside and Tall Pines have only been included since their inception on October 22, 2015. All intercompany transactions and balances have been eliminated in consolidation. |
Use of estimates | Use of estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. |
Cash | Cash Cash and cash equivalents include cash on hand and on deposit at banking institutions as well as all highly liquid short-term investments with original maturities of 90 days or less. The Company did not have cash equivalents as of March 31, 2016 and December 31, 2015. |
Concentration of risk | Concentration of risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash. The Company places its cash with high quality banking institutions As of March 31, 2016 and December 31, 2015, the Company had cash balances in excess of the Federal Deposit Insurance Corporation limit of $0 and $384,234, respectively. |
Earnings (loss) per share | Earnings (loss) per share Basic earnings (loss) per common share is computed by dividing net income (loss) available to common shareholders by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings (loss) per common share is computed by dividing income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if potentially dilutive securities had been issued. There were no potentially dilutive securities outstanding during the periods presented. |
Income taxes | Income taxes The Company records income taxes under the asset and liability method, whereby deferred tax assets and liabilities are recognized based on the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and attributable to operating loss and tax credit carry forwards. Accounting standards regarding income taxes requires a reduction of the carrying amounts of deferred tax assets by a valuation allowance, if based on the available evidence, it is more likely than not that such assets will not be realized. Accordingly, the need to establish valuation allowances for deferred tax assets is assessed at each reporting period based on a more-likely-than-not realization threshold. This assessment considers, among other matters, the nature, frequency and severity of current and cumulative losses, forecasts of future profitability, the duration of statutory carry forward periods, the Companys experience with operating loss and tax credit carry forwards not expiring unused, and tax planning alternatives. The Company recorded valuation allowances on the net deferred tax assets. Management will reassess the realization of deferred tax assets based on the accounting standards for income taxes each reporting period. To the extent that the financial results of operations improve and it becomes more likely than not that the deferred tax assets are realizable, the Company will be able to reduce the valuation allowance. Significant judgment is required in evaluating the Companys tax positions and determining its provision for income taxes. During the ordinary course of business, there are many transactions and calculations for which the ultimate tax determination is uncertain. Accounting standards regarding uncertainty in income taxes provides a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount which is more than 50% likely, based solely on the technical merits, of being sustained on examinations. The Company considers many factors when evaluating and estimating its tax positions and tax benefits, which may require periodic adjustments and which may not accurately anticipate actual outcomes. |
Fair value of financial instruments | Fair value of financial instruments The Company follows guidance for accounting for fair value measurements of financial assets and financial liabilities and for fair value measurements of nonfinancial items that are recognized or disclosed at fair value in the financial statements on a recurring basis. Additionally, the Company adopted guidance for fair value measurement related to nonfinancial items that are recognized and disclosed at fair value in the financial statements on a nonrecurring basis. The guidance establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability. The carrying amounts of financial assets such as cash approximate their fair values because of the short maturity of these instruments. The Company had no such financial instruments outstanding as of March 31, 2016 and December 31, 2015. |
Recent accounting pronouncements | Recent accounting pronouncements In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09) In August, 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date. In February, 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis. In September, 2015, the FASB issued ASU No. 2015-16, Business Combinations (Topic 805). In February 2016, the FASB issued ASU No. 2016-02, Leases In March 2016, the FASB issued an ASU amending the accounting for stock-based compensation and requiring excess tax benefits and deficiencies to be recognized as a component of income tax expense rather than equity. This guidance also requires excess tax benefits to be presented as an operating activity on the statement of cash flows and allows an entity to make an accounting policy election to either estimate expected forfeitures or to account for them as they occur. The ASU is effective for reporting periods beginning after December 15, 2016, with early adoption permitted. The Company is currently evaluating the impact of the ASU; however, it does not expect the ASU will have a material impact on our consolidated financial statements. Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company's present or future financial statements. |
Investments in Real Estate (Tab
Investments in Real Estate (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Investments In Real Estate Tables | |
Schedule of company's real estate holdings | A summary of the Companys real estate holdings at March 31, 2016 and December 31, 2015 is below: March 31, December 31, 2016 2015 32-38 Waydell Street Newark, NJ $ 168,325 $ 165,325 3000 Ember Drive Decatur, GA 3,799,292 2,633,766 3200 Cushman Circle Atlanta, GA 512,296 494,749 $ 4,479,913 $ 3,293,840 |
Notes Payable (Tables)
Notes Payable (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Payable [Abstract] | |
Schedule of notes payable | Notes payable at March 31, 2016 and December 31, 2015 consist of the following: March 31, December 31, 2016 2015 Note payable dated June 5, 2015; unsecured; interest at 0% per annum; due June 5, 2016 $ 20,000 $ 20,000 Note payable dated April 15, 2015; unsecured; interest at 0% per annum; monthly payments of $500; due April 15,2020 24,500 26,000 Note payable dated July 15, 2015; unsecured; interest at 10% per annum; due July 1, 2016 28,600 28,600 Note payable dated October 1, 2015; unsecured; interest at 10% per annum; due October 1, 2016 16,890 74,390 Notes payable to Sharestates Investing, LLC, an unrelated party, dated November 20, 2015; secured by Creekside and Tall Pines properties and guaranteed by the Company's CEO; interest at 12% per annum; due November 30, 2016 6,270,000 5,320,000 Total 6,359,990 5,468,990 Note discount (142,766 ) (196,011 ) Net amount 6,217,224 5,272,979 Less current portion (6,198,724 ) (5,252,979 ) Long-term portion $ 18,500 $ 20,000 |
Schedule of aggregate future maturities | Aggregate future maturities of notes payable at March 31, 2016 are as follows: Year ending March 31, 2017 $ 6,198,724 2018 6,000 2019 6,000 2020 6,000 2021 500 $ 6,217,224 |
Summary of Significant Accoun17
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Accounting Policies [Abstract] | ||
FDIC cash insured amount | $ 0 | $ 384,234 |
Going Concern (Details Narrativ
Going Concern (Details Narrative) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016USD ($)Number | Mar. 31, 2015USD ($) | Dec. 31, 2015USD ($) | |
Operating losses | $ (459,261) | $ (224,873) | $ (796,231) |
Accumulated deficit | (1,256,199) | (796,938) | |
Working capital deficit | $ 5,729,002 | $ 3,912,938 | |
Number of property | Number | 2 | ||
Commercial Non-Revolving Line Of Credit Promissory Notes [Member] | |||
Aggregate face amount | $ 950,000 | ||
Commercial Non-Revolving Line Of Credit Promissory Notes [Member] | Creekside and Tall Pines [Member] | |||
Aggregate face amount | 5,680,000 | ||
Commercial Promissory Notes And Commercial Non-Revolving Line Of Credit Promissory Notes [Member] | Creekside and Tall Pines [Member] | |||
Aggregate face amount | $ 11,000,000 |
Investments in Real Estate (Det
Investments in Real Estate (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Investments in real estate | $ 4,479,913 | $ 3,293,840 |
Waydell 32-38 LLC [Member] | Real Property in Newark New Jersey [Member] | ||
Investments in real estate | 168,325 | 165,325 |
3000 Ember Drive [Member] | Real Property in Decatur Georgia [Member] | ||
Investments in real estate | 3,799,292 | 2,633,766 |
3200 Cushman Circle [Member] | Real Property in Atlanta Georgia [Member] | ||
Investments in real estate | $ 512,296 | $ 494,749 |
Investments in Real Estate (D20
Investments in Real Estate (Details Narrative) - USD ($) | Nov. 20, 2015 | Aug. 13, 2015 | Jun. 25, 2015 | Mar. 31, 2016 | Dec. 31, 2015 |
Investments in real estate | $ 4,479,913 | $ 3,293,840 | |||
Capitalized interest | 181,576 | 45,153 | |||
Real Property in Atlanta Georgia [Member] | Minimum [Member] | |||||
Estimates cost of the renovations of properties | 6,000,000 | ||||
Real Property in Atlanta Georgia [Member] | Maximum [Member] | |||||
Estimates cost of the renovations of properties | 7,500,000 | ||||
Waydell 32-38 LLC [Member] | |||||
Percentage of ownership interest | 100.00% | ||||
Number of shares issued through acquisition | 300,000 | ||||
Number of shares issued through acquisition, value | $ 150,000 | ||||
Waydell 32-38 LLC [Member] | Real Property in Newark New Jersey [Member] | |||||
Purchase price of property | $ 150,000 | ||||
Payments for investments in real estate | 18,325 | ||||
Investments in real estate | 168,325 | 165,325 | |||
3000 Ember Drive [Member] | Real Property in Decatur Georgia [Member] | |||||
Purchase price of property | $ 1,820,000 | ||||
Investments in real estate | 3,799,292 | 2,633,766 | |||
3200 Cushman Circle [Member] | Real Property in Atlanta Georgia [Member] | |||||
Purchase price of property | $ 480,000 | ||||
Investments in real estate | $ 512,296 | $ 494,749 |
Notes Payable (Details)
Notes Payable (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | ||
Total | $ 6,359,990 | $ 5,468,990 |
Note discount | (142,766) | (196,011) |
Net amount | 6,217,224 | 5,272,979 |
Less current portion | (6,198,724) | (5,252,979) |
Long-term portion | 18,500 | 20,000 |
0% Unsecured Note Payable Due On June 5, 2016 [Member] | ||
Debt Instrument [Line Items] | ||
Total | $ 20,000 | 20,000 |
Issuance date | Jun. 5, 2015 | |
0% Unsecured Note Payable Due On April 15, 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Total | $ 24,500 | 26,000 |
Issuance date | Apr. 15, 2015 | |
Debt instrument, periodic payment | $ 500 | |
Description of frequency periodic payment | monthly | |
10% Unsecured Note Payable Due On July 1, 2016 [Member] | ||
Debt Instrument [Line Items] | ||
Total | $ 28,600 | 28,600 |
Issuance date | Jul. 15, 2015 | |
10% Unsecured Note Payable Due On October 1, 2016 [Member] | ||
Debt Instrument [Line Items] | ||
Total | $ 16,890 | 74,390 |
Issuance date | Oct. 1, 2015 | |
12% Unsecured Note Payable Due On November 30, 2016 [Member] | Sharestates Investing, LLC [Member] | Creekside and Tall Pines [Member] | ||
Debt Instrument [Line Items] | ||
Total | $ 6,270,000 | $ 5,320,000 |
Issuance date | Nov. 20, 2015 | |
Description of collateral debt | Secured by Creekside and Tall Pines properties and guaranteed by the Company's CEO |
Notes Payable (Details 1)
Notes Payable (Details 1) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Notes Payable [Abstract] | ||
2,017 | $ 6,198,724 | |
2,018 | 6,000 | |
2,019 | 6,000 | |
2,020 | 6,000 | |
2,021 | 500 | |
Total | $ 6,217,224 | $ 5,272,979 |
Notes Payable (Details Narrativ
Notes Payable (Details Narrative) | 3 Months Ended | ||
Mar. 31, 2016USD ($)Number | Mar. 31, 2015USD ($) | Dec. 31, 2015USD ($) | |
Debt Instrument [Line Items] | |||
Amortized prepaid interest | $ 330,000 | ||
Prepaid interest | $ 880,000 | $ 1,210,000 | |
Commercial Promissory Notes And Commercial Non-Revolving Line Of Credit Promissory Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, due date | Nov. 30, 2016 | ||
Percentage of debt issuance cost | 2.00% | ||
Debt issuance cost | $ 220,000 | ||
Amortized debt issuance cost | 53,245 | ||
Total debt interest | 1,320,000 | ||
Commercial Promissory Notes And Commercial Non-Revolving Line Of Credit Promissory Notes [Member] | Creekside and Tall Pines [Member] | |||
Debt Instrument [Line Items] | |||
Aggregate face amount | $ 11,000,000 | ||
Debt instrument, interest rate | 12.00% | ||
Commercial Promissory Notes [Member] | |||
Debt Instrument [Line Items] | |||
Aggregate face amount | $ 5,320,000 | ||
Numbers of notes issued | Number | 4 | ||
Commercial Non-Revolving Line Of Credit Promissory Notes [Member] | |||
Debt Instrument [Line Items] | |||
Aggregate face amount | $ 950,000 | ||
Commercial Non-Revolving Line Of Credit Promissory Notes [Member] | Creekside and Tall Pines [Member] | |||
Debt Instrument [Line Items] | |||
Aggregate face amount | $ 5,680,000 | ||
Numbers of notes issued | Number | 4 |
Advances from stockholder (Deta
Advances from stockholder (Details Narrative) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Advances from majority stockholder | $ 142,671 | $ 260,190 |
Majority Shareholder [Member] | ||
Advances from majority stockholder | $ 121,133 | $ 121,383 |
Agreements to Purchase Real E25
Agreements to Purchase Real Estate (Details Narrative) - USD ($) | Feb. 23, 2016 | Dec. 15, 2015 | Mar. 31, 2016 | Dec. 31, 2015 |
Purchase of parcel of land and improvements | $ 1,200,000 | |||
81 Clay Street, Newark, New Jersey [Member] | ||||
Purchase of parcel of land and improvements | $ 4,000,000 | |||
Deposit | $ 50,000 | |||
Deposit returned | $ 25,000 | |||
Holliswood, New York [Member] | ||||
Purchase of parcel of land and improvements | 999,500 | |||
Finders fees | $ 200,500 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - USD ($) | Apr. 08, 2016 | Feb. 23, 2016 |
Subsequent Event [Line Items] | ||
Purchase of parcel of land and improvements | $ 1,200,000 | |
Holliswood, New York [Member] | ||
Subsequent Event [Line Items] | ||
Purchase of parcel of land and improvements | 999,500 | |
Finders fees | $ 200,500 | |
Subsequent Event [Member] | Sharestates Investing, LLC [Member] | 12% Secured Notes Due On April 30, 2017 [Member] | ||
Subsequent Event [Line Items] | ||
Purchase of parcel of land and improvements | $ 840,000 | |
Subsequent Event [Member] | Purchase Agreement [Member] | ||
Subsequent Event [Line Items] | ||
Purchase of parcel of land and improvements | 1,090,936 | |
Subsequent Event [Member] | Purchase Agreement [Member] | Holliswood, New York [Member] | ||
Subsequent Event [Line Items] | ||
Purchase of parcel of land and improvements | 999,500 | |
Finders fees | $ 91,436 |