Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2023 | Aug. 08, 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 | 001-41473 | |
Entity Registrant Name | LUXURBAN HOTELS INC. | |
Entity Central Index Key | 0001893311 | |
Entity Tax Identification Number | 82-3334945 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 2125 Biscayne Blvd | |
Entity Address, Address Line Two | Suite 253 | |
Entity Address, City or Town | Miami | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 33137 | |
City Area Code | (833) | |
Local Phone Number | 723-7368 | |
Title of 12(b) Security | Common stock, $0.00001 par value per share | |
Trading Symbol | LUXH | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Elected Not To Use the Extended Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 35,696,591 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Current Assets | ||
Cash and Cash Equivalents | $ 3,777,678 | $ 1,076,402 |
Treasury Bills | 2,661,382 | |
Processor Retained Funds | 6,911,532 | 6,734,220 |
Channel Retained Funds and Receivables from On-Line Travel Agents (“OTAs”) | 5,863,561 | |
Prepaid Expenses and Other Current Assets | 1,846,433 | 963,300 |
Security Deposits - Current | 112,290 | 112,290 |
Total Current Assets | 18,511,494 | 11,547,594 |
Other Assets | ||
Furniture, Equipment and Leasehold Improvements, Net | 564,053 | 197,129 |
Restricted Cash | 1,100,000 | 1,100,000 |
Security Deposits - Noncurrent | 19,366,130 | 11,233,385 |
Prepaid Expenses and Other Noncurrent Assets | 559,838 | 559,838 |
Operating Lease Right-Of-Use Assets, Net | 177,480,671 | 83,325,075 |
Total Other Assets | 199,070,692 | 96,415,427 |
Total Assets | 217,582,186 | 107,963,021 |
Current Liabilities | ||
Accounts Payable and Accrued Expenses | 6,581,745 | 6,252,491 |
Rents Received in Advance | 3,092,972 | 2,566,504 |
Short Term Business Financing | 1,706,836 | 2,003,015 |
Loans Payable - Current | 1,456,187 | 10,324,519 |
Operating Lease Liabilities - Current | 6,020,163 | 4,293,085 |
Accrued Income Taxes | 2,015,200 | |
Total Current Liabilities | 20,873,103 | 25,439,614 |
Long-Term Liabilities | ||
Loans Payable - Noncurrent | 1,448,829 | 1,689,193 |
Security Deposit Letter of Credit | 3,500,000 | 2,500,000 |
Operating Lease Liabilities - Noncurrent | 178,312,362 | 81,626,338 |
Total Long-Term Liabilities | 183,261,191 | 85,815,531 |
Total Liabilities | 204,134,294 | 111,255,145 |
Stockholders’ Equity (Deficit) | ||
Common Stock (shares authorized, issued and outstanding - 35,136,591 and 27,691,918, respectively) | 351 | 276 |
Additional Paid In Capital | 64,021,728 | 17,726,592 |
Accumulated Deficit | (50,574,187) | (21,018,992) |
Total Stockholders’ Equity (Deficit) | 13,447,892 | (3,292,124) |
Total Liabilities and Stockholders’ Equity (Deficit) | $ 217,582,186 | $ 107,963,021 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - shares | Jun. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock, shares authorized | 35,136,591 | 27,691,918 |
Common stock, shares issued | 35,136,591 | 27,691,918 |
Common stock, shares outstanding | 35,136,591 | 27,691,918 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENT 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] | ||||
Net Rental Revenue | $ 31,861,098 | $ 10,201,338 | $ 54,675,273 | $ 19,300,763 |
Rent Expense | 4,844,114 | 2,133,569 | 10,265,981 | 4,584,547 |
Non-Cash Rent Expense Amortization | 2,583,272 | 1,115,180 | 4,234,941 | 1,202,902 |
Other Expenses | 14,254,698 | 4,095,971 | 24,633,463 | 8,143,433 |
Total Cost of Revenue | 21,682,084 | 7,344,720 | 39,134,385 | 13,930,882 |
Gross Profit | 10,179,014 | 2,856,618 | 15,540,888 | 5,369,881 |
General and Administrative Expenses | 4,417,237 | 885,621 | 7,159,823 | 1,865,227 |
Non-Cash Issuance of Common Stock for Operating Expenses | 784,314 | 1,669,130 | ||
Non-Cash Stock Compensation Expense | 429,996 | |||
Non-Cash Stock Option Expense | 204,814 | 372,387 | ||
Total Operating Expenses | 5,406,365 | 885,621 | 9,631,336 | 1,865,227 |
Income from Operations | 4,772,649 | 1,970,997 | 5,909,552 | 3,504,654 |
Other Income (Expense) | ||||
Other Income | 58,370 | 137,154 | 98,248 | 587,067 |
Cash Interest and Financing Costs | (1,189,901) | (595,742) | (3,320,506) | (1,159,879) |
Non-Cash Financing Costs | (28,522,740) | (30,227,289) | ||
Total Other Expense | (29,654,271) | (458,588) | (33,449,547) | (572,812) |
(Loss) Income Before Provision for Income Taxes | (24,881,622) | 1,512,409 | (27,539,995) | 2,931,842 |
Provision for Income Taxes | 1,893,039 | 750,000 | 2,015,200 | 750,000 |
Net (Loss) Income | $ (26,774,661) | $ 762,409 | $ (29,555,195) | $ 2,181,842 |
Basic (Loss) Income Per Common Share | $ (0.78) | $ 0.04 | $ 0.94 | $ 0.10 |
Diluted (Loss) Income Per Common Share | $ (0.78) | $ 0.04 | $ 0.94 | $ 0.10 |
Basic Weighted Average Number of Common Shares Outstanding | 34,291,045 | 21,675,001 | 31,490,759 | 21,315,747 |
Diluted Weighted Average Number of Common Shares Outstanding | 34,291,045 | 21,675,001 | 31,490,759 | 21,315,747 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' DEFICIT (UNAUDITED) - USD ($) | Common Stock [Member] | Stockholder Member Deficit [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Balance - March 31, 2022 at Dec. 31, 2021 | $ (11,214,050) | $ (11,214,050) | |||
Beginning balance, shares at Dec. 31, 2021 | |||||
Cumulative effect changes in accounting principle | (414,373) | (414,373) | |||
Conversion to C Corp | $ 216 | 11,628,423 | (11,628,639) | ||
Conversion to C Corp, shares | 21,675,001 | ||||
Net Income | 1,419,433 | 1,419,433 | |||
Balance - June 30, 2022 at Mar. 31, 2022 | $ 216 | (10,209,206) | (10,208,990) | ||
Ending balance, shares at Mar. 31, 2022 | 21,675,001 | ||||
Net Income | 762,409 | 762,409 | |||
Balance - June 30, 2022 at Jun. 30, 2022 | $ 216 | (9,446,797) | (9,446,581) | ||
Ending balance, shares at Jun. 30, 2022 | 21,675,001 | ||||
Balance - March 31, 2022 at Dec. 31, 2022 | $ 276 | 17,726,592 | (21,018,992) | (3,292,124) | |
Beginning balance, shares at Dec. 31, 2022 | 27,691,918 | ||||
Net Income | (2,780,534) | (2,780,534) | |||
Non-Cash Stock Compensation Expense | $ 2 | 429,994 | 429,996 | ||
Non-Cash Stock Compensation Expense, shares | 166,665 | ||||
Non-Cash Option Compensation Expense | 167,573 | 167,573 | |||
Issuance of Shares for Operating Expenses | $ 4 | 884,812 | 884,816 | ||
Non-Cash Issuance of Shares for Operating Expenses, shares | 433,881 | ||||
Conversion of Loans | $ 9 | 2,699,991 | 2,700,000 | ||
Conversion of Loans, shares | 900,000 | ||||
Warrant Exercise | $ 2 | 399,998 | 400,000 | ||
Warrant Exercise, shares | 200,000 | ||||
Loss on Debt Extinguishment | 58,579 | 58,579 | |||
Balance - June 30, 2022 at Mar. 31, 2023 | $ 293 | 22,367,539 | (23,799,526) | (1,431,694) | |
Ending balance, shares at Mar. 31, 2023 | 29,392,464 | ||||
Net Income | (26,774,661) | (26,774,661) | |||
Non-Cash Stock Option Expense | 204,814 | 204,814 | |||
Conversion of Loans | $ 23 | 4,989,607 | 4,989,630 | ||
Conversion of Loans, shares | 2,278,975 | ||||
Issuance of Shares for Operating Expenses | $ 2 | 784,311 | 784,313 | ||
Issuance of Shares for Operating Expenses, shares | 276,525 | ||||
Warrant Exercise | $ 24 | 4,912,478 | 4,912,502 | ||
Warrant Exercise, shares | 2,356,251 | ||||
Issuance of Shares to Satisfy Loans | $ 1 | 157,999 | 158,000 | ||
Issuance of Shares to Satisfy Loans, shares | 58,088 | ||||
Issuance of Shares for Deferred Compensation | $ 2 | 467,214 | 467,216 | ||
Issuance of Shares for Deferred Compensation, shares | 160,036 | ||||
Issuance of Shares for Revenue Share Agreements | $ 6 | 1,704,543 | 1,704,549 | ||
Issuance of Shares for Revenue Share Agreements, shares | 614,252 | ||||
Termination of Revenue Share Agreement Adjustment | 28,174,148 | 28,174,148 | |||
Modification of Warrants | 259,075 | 259,075 | |||
Balance - June 30, 2022 at Jun. 30, 2023 | $ 351 | $ 64,021,728 | $ (50,574,187) | $ 13,447,892 | |
Ending balance, shares at Jun. 30, 2023 | 35,136,591 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED) - USD ($) | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Cash Flows [Abstract] | ||
Net (Loss) Income | $ (29,555,195) | $ 2,181,842 |
Adjustments to reconcile net (loss) income to net cash used in operating activities: | ||
Non-cash stock compensation expense | 897,212 | |
Non-cash stock option expense | 372,387 | |
Depreciation expense | 31,847 | 2,556 |
Shares issued for operating expenses | 1,669,130 | |
Non-cash lease expense | 13,752,266 | 5,787,499 |
Gain on sale of Treasury Bills | (31,014) | |
Issuance of Shares for Revenue Share Agreement | 1,704,549 | |
Termination of Revenue Share Agreement | 28,174,148 | |
Modification of Warrants | 259,074 | |
Non-cash Financing Changes Associated with Short Term Business Financing | 146,682 | |
Loss on Debt Extinguishment | 58,579 | |
(Increase) Decrease in: | ||
Processor retained funds | (177,312) | (4,559,391) |
Channel retained funds and receivables from OTAs | (5,863,561) | |
Prepaid expense and other assets | (883,133) | (346,272) |
Security deposits | (8,132,745) | (2,731,000) |
(Decrease) Increase in: | ||
Accounts payable and accrued expenses | 329,254 | 1,091,687 |
Operating lease liabilities | (9,494,760) | (5,535,782) |
Rents received in advance | 526,468 | 2,251,152 |
Accrued Income Taxes | 2,015,200 | 750,000 |
Net cash used in operating activities | (4,200,924) | (1,107,709) |
Cash Flows from Investing Activities | ||
Purchase of Furniture and Equipment and Leaseholds | (398,771) | |
Proceeds from the sale of Treasury Bills | 2,692,396 | |
Net cash provided by investing activities | 2,293,625 | |
Cash Flows from Financing Activities | ||
Deferred offering costs - net | (462,546) | |
Repayments of short term business financing - net | (442,861) | (810,519) |
Warrant Exercises | 5,312,502 | |
(Repayments of) proceeds from loans payable - net | (261,066) | 2,374,332 |
Net cash provided by financing activities | 4,608,575 | 1,101,267 |
Net Increase (Decrease) in Cash and Cash Equivalents and Restricted Cash | 2,701,276 | (6,442) |
Cash and Cash Equivalents and Restricted Cash - beginning of the period | 2,176,402 | 1,106,998 |
Cash and Cash Equivalents and Restricted Cash - end of the period | 4,877,678 | 1,100,556 |
Cash and Cash Equivalents | 3,777,678 | 556 |
Restricted Cash | 1,100,000 | 1,100,000 |
Total Cash and Cash Equivalents and Restricted Cash | 4,877,678 | 1,100,556 |
Supplemental Disclosures of Cash Flow Information | ||
Cash paid for income taxes | ||
Cash paid for interest | 1,292,268 | 1,010,688 |
Noncash operating activities: | ||
Acquisition of New Operating Lease Right-of-Use Assets | 99,044,656 | |
Noncash financing activities: | ||
Conversion of debt to common stock and additional paid-in capital | $ 7,847,630 |
DESCRIPTION OF BUSINESS AND PRI
DESCRIPTION OF BUSINESS AND PRINCIPLES OF CONSOLIDATION | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS AND PRINCIPLES OF CONSOLIDATION | 1 - DESCRIPTION OF BUSINESS AND PRINCIPLES OF CONSOLIDATION LuxUrban Hotels Inc. (“LUXH” or the “Company”) utilizes an asset light business model to lease entire hotels on a long-term basis and rent out hotel rooms in the properties it leases. The Company currently manages a portfolio of hotel rooms in New York, Washington D.C., Miami Beach, New Orleans and Los Angeles. In late 2021, LUXH commenced the process of winding down its legacy business of leasing and re-leasing multifamily residential units, as it pivoted toward its new strategy of leasing hotels. The consolidated financial statements include the accounts of LuxUrban Hotels Inc. (“LuxUrban”) and its wholly owned subsidiary SoBeNY Partners LLC (“SoBeNY”). On November 2, 2022, CorpHousing Group Inc. (“CorpHousing”) changed its name to LuxUrban Hotels Inc. In June 2021, the members of SoBeNY exchanged all of their membership interests for additional membership interests in Corphousing LLC, with SoBeNY becoming a wholly owned subsidiary of Corphousing LLC. Both entities were under common control at the time of the transaction. Since there was no change in control over the net assets, there is no change in basis in the net assets. In January 2022, Corphousing LLC and its wholly owned subsidiary, SoBeNY, converted into C corporations, with the then current members of Corphousing LLC becoming the stockholders of the newly formed C corporation, CorpHousing Group Inc. The conversion has no effect on our business or operations and was undertaken to convert the forms of these legal entities into corporations for purposes of operating as a public company. All properties, rights, businesses, operations, duties, obligations and liabilities of the predecessor limited liability companies remain those of CorpHousing Group Inc. and SoBeNY Partners Inc. All significant intercompany accounts and transactions have been eliminated in consolidation. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES a. Basis of Presentation b. Revenue Recognition The Company accounts for revenue in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 606 which was adopted at the beginning of fiscal year 2018 using the modified retrospective method. The Company did not recognize any cumulative-effect adjustment to retained earnings upon adoption as the effect was immaterial. Payment received for the future use of a rental unit is recognized as a liability and reported as rents received in advance on the balance sheets. Rents received in advance are recognized as revenue after the rental unit is occupied by the customer for the agreed upon length of time. The rents received in advance balance as of June 30, 2023 and December 31, 2022, was $ 3,092,972 2,566,504 c. Use of Estimates d. Cash and Cash Equivalents 3,777,678 1,076,402 e. Fair Value of Financial Instruments f. Commissions 1,482,609 4,556,142 1,393,128 2,690,298 g. Income Taxes Accounting for Uncertainty in Income Taxes, The Company is subject to income taxes in the jurisdictions in which it operates. The Company accounts for 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. A valuation allowance is recorded for deferred tax assets if it is more likely than not that the deferred tax assets will not be realized. For the three and six months ended June 30, 2023, the Company recorded a tax provision of $ 1,893,039 2,015,200 750,000 750,000 h. Sales Tax 523,220 229,371 i. Paycheck Protection Program Loan (“PPP”) j. Earnings Per Share (“EPS”) k. Liquidity — 26,774,661 29,555,195 2,361,609 6,020,163 3,658,554 |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2023 | |
Leases | |
LEASES | 3 - LEASES In February 2017, the FASB issued ASU No. 2016-02, Leases (“Topic 842”), to provide guidance on recognizing lease assets and lease liabilities on the consolidated balance sheet and disclosing key information about lease arrangements, specifically differentiating between different types of leases. The Company adopted Topic 842, with an effective date of January 1, 2022. The consolidated financial statements from this date are presented under the new standard, while the comparative periods presented are not adjusted and continue to be reported in accordance with the Company’s historical accounting policy. This standard requires all lessees to recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments. Under Topic 842, the Company applied a dual approach to all leases whereby the Company is a lessee and classifies leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the Company. Lease classification is evaluated at the inception of the lease agreement. Regardless of classification, the Company records a right-of-use asset and a lease liability for all leases with a term greater than 12 months. Operating lease expense is recognized on a straight-line basis over the term of the lease. Operating right of use (“ROU”) assets and operating lease liabilities are recognized at the lease commencement date. Operating lease liabilities represent the present value of lease payments not yet paid. Operating right of use assets represent our right to use an underlying asset and is based upon the operating lease liabilities adjusted for prepayments or accrued lease payments, initial direct costs, lease incentives, and impairment of operating lease assets. To determine the present value of lease payments not yet paid, we estimate incremental secured borrowing rates corresponding to the maturities of the leases. The adoption of the new lease standard had a significant impact on the Consolidated Balance Sheets, resulting in the recognition on January 1, 2022 a right-of-use asset of $ 36,304,289 7,370,890 29,884,584 414,373 The components of the right-of-use assets and lease liabilities as of June 30, 2023 and December 31, 2022 were as follows: At June 30, 2023 and December 31, 2022, supplemental balance sheet information related to leases were as follows: Schedule of supplemental balance sheet information related to leases June 30, December 31, Operating lease right of use assets, net $ 177,480,671 $ 83,325,075 Operating lease liabilities, current portion $ 6,020,163 $ 4,293,085 Operating lease liabilities, net of current portion $ 178,312,362 $ 81,626,338 At June 30 2023, future minimum lease payments under the non-cancelable operating leases are as follows: Schedule of future minimum lease payments under the non-cancelable operating leases Twelve Months Ending June 30, 2024 $ 24,876,852 2025 25,952,395 2026 26,668,314 2027 24,584,479 2028 23,318,299 Thereafter 229,191,543 Total lease payment $ 354,591,882 Less interest (170,259,357 ) Present value obligation 184,332,525 Short-term liability 6,020,163 Long-term liability 178,312,362 The following summarizes other supplemental information about the Company’s operating lease: Schedule of other supplemental information related to operating lease June 30, 2023 Weighted average discount rate 10.5 % Weighted average remaining lease term (years) 16.6 Three Months Ended 2023 Six Months Ended Operating lease cost $ 7,295,880 $ 13,752,266 Short-term lease cost $ 131,506 $ 748,656 Total lease cost $ 7,427,386 $ 14,500,922 |
ACCOUNTS PAYABLE AND ACCRUED LI
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | 6 Months Ended |
Jun. 30, 2023 | |
Payables and Accruals [Abstract] | |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | 4 - ACCOUNTS PAYABLE AND ACCRUED LIABILITIES Accounts payable and accrued expenses totaled $ 6,581,745 6,252,492 1,405,000 975,000 847,000 347,000 265,000 857,000 890,000 289,000 302,000 269,000 136,000 1,570,000 1,002,000 805,000 572,000 507,000 495,000 371,000 104,000 268,000 265,000 135,000 158,000 2,015,200 no Of the legal amounts accrued, the company believes the accrual best estimates the most likely outcomes of these matters however the range of outcomes could be between $900,000–$1,500,000. |
LOANS PAYABLE _ SBA _ PPP LOAN
LOANS PAYABLE — SBA — PPP LOAN | 6 Months Ended |
Jun. 30, 2023 | |
Loans Payable Sba Ppp Loan | |
LOANS PAYABLE — SBA — PPP LOAN | 5 - LOANS PAYABLE — SBA — PPP LOAN On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was enacted to provide emergency assistance for individuals, families, and organizations affected by the coronavirus pandemic. The PPP, created through the CARES Act, provides qualified organizations with loans of up to $ 10,000,000 In April and May 2020, SoBeNY and CorpHousing obtained funding of $ 516,225 298,958 15,932 1.00% Accrued interest at June 30, 2023 and December 31, 2022, was $ 747 5,571 Future minimum principal repayments of the SBA — PPP loans payable are as follows: Schedule of future minimum principal repayments of the SBA, PPP loans payable For the Twelve Months Ending June 30, 2024 $ 276,658 |
LOANS PAYABLE _ SBA _ EIDL LOAN
LOANS PAYABLE — SBA — EIDL LOAN | 6 Months Ended |
Jun. 30, 2023 | |
Loans Payable Sba Eidl Loan | |
LOANS PAYABLE — SBA — EIDL LOAN | 6 - LOANS PAYABLE — SBA — EIDL LOAN During 2020, the Company received three 3 30 3.75% no On April 21, 2020, SoBeNY received an EIDL loan in the amount of $ 500,000 3.75% 2,437 150,000 3.75% 731 150,000 3.75% 731 The outstanding balance at June 30, 2023 and December 31, 2022, was $ 794,134 800,000 Accrued interest at June 30, 2023 was $ 27,644 Future minimum principal repayments of the SBA — EIDL loans payable are as follows: Schedule of future minimum principal repayments of the SBA,EIDL loans payable For the Twelve Months Ending June 30, 2024 $ 17,000 2025 15,106 2026 15,682 2027 16,280 2028 16,902 Thereafter 713,164 Total $ 794,134 |
SHORT-TERM BUSINESS FINANCING
SHORT-TERM BUSINESS FINANCING | 6 Months Ended |
Jun. 30, 2023 | |
Short-term Business Financing | |
SHORT-TERM BUSINESS FINANCING | 7 - SHORT-TERM BUSINESS FINANCING The Company entered into multiple short-term factoring agreements related to future credit card receipts to fund operations. The Company is required to repay this financing in fixed daily payments until the balance is repaid. Fees associated with this financing have been recognized in interest expense in the accompanying consolidated statement of operations. As of June 30, 2023 and December 31, 2022, the outstanding balance on these merchant cash advances net of unamortized costs was $ 1,706,836 2,003,015 |
LOANS PAYABLE
LOANS PAYABLE | 6 Months Ended |
Jun. 30, 2023 | |
Loans Payable | |
LOANS PAYABLE | 8 - LOANS PAYABLE Loans payable consist of the following as of: Schedule of loans payable June 30, 2023 December 31, 2022 Original borrowings of $ 250,000 1% no - 210,500 Original payable of $ 151,096 252,954 1,500 404,050 365,020 392,044 Original payable of $ 553,175 72,237 25,000 625,412 400,000 450,000 Original payable of $ 492,180 620,804 25,000 1,112,984 865,618 865,618 Borrowings of $ 9,075,000 638,388 5% no - 8,275,040 Original borrowings of $ 60,000 1% no 60,000 60,000 Original amounts due of $ 195,000 10,000 25,000 20,000 65,000 Original borrowing of $ 119,224 14,903 - 119,224 Other borrowing 28,610 225,929 Less: Current maturities 1,162,529 7,261,723 $ 576,720 $ 3,401,632 Future minimum principal repayments of the loans payable are as follows: Schedule of future minimum principal repayments of the loans payable For the Twelve Months Ending June 30, 2024 $ 1,162,529 2025 576,720 Loans payable $ 1,739,249 |
LOANS PAYABLE _ RELATED PARTIES
LOANS PAYABLE — RELATED PARTIES | 6 Months Ended |
Jun. 30, 2023 | |
Loans Payable Related Parties | |
LOANS PAYABLE — RELATED PARTIES | 9 - LOANS PAYABLE — RELATED PARTIES Loans payable — related parties consists of the following: Schedule of loans payable, related parties June 30, December 31, 2023 2022 Original borrowings of $ 496,500 6% $ - $ 238,000 Less - 238,000 $ - $ - In May of 2023, the company issued 58,088 |
CONVERTIBLE NOTES
CONVERTIBLE NOTES | 6 Months Ended |
Jun. 30, 2023 | |
Convertible Notes | |
CONVERTIBLE NOTES | 10 - CONVERTIBLE NOTES On February 17, 2023, we entered into an exchange agreement with investors pursuant to which all principal, interest and prepayment premium outstanding under a nonconvertible 15% original issue discount (“OID”) note with private investors, which was exchanged for a convertible note in the principal amount of $ 2,079,686 August 17, 2023 58,579 808,000 none |
LINE OF CREDIT
LINE OF CREDIT | 6 Months Ended |
Jun. 30, 2023 | |
Line Of Credit | |
LINE OF CREDIT | 11 - LINE OF CREDIT In February 2019, the Company entered into a line of credit agreement in the amount of $ 95,000 8.25% 3.49% 94,975 |
SECURITY DEPOSIT LETTER OF CRED
SECURITY DEPOSIT LETTER OF CREDIT | 6 Months Ended |
Jun. 30, 2023 | |
Security Deposit Letter Of Credit | |
SECURITY DEPOSIT LETTER OF CREDIT | 12 - SECURITY DEPOSIT LETTER OF CREDIT In November of 2022, the Company entered into a standby letter of credit agreement in the amount of $ 2,500,000 1,000,000 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 13 - RELATED PARTY TRANSACTIONS Consulting services related to the management of the Company, including overseeing the leasing of additional units and revenue management, were provided to the Company through a consulting agreement with SuperLuxMia LLC, a consulting firm owned by the Chief Executive Officer and Chairman of the Company. For the three and six months ended June 30, 2023, these consulting fees of the Company were zero 0 0 192,000 general and administrative expenses On December 20, 2022, the Company, and our chairman and chief executive officer, Brian Ferdinand (“Ferdinand”), entered into a Note Extension and Conversion Agreement with Greenle Partners LLC Series Alpha PS (“Greenle Alpha”) and Greenle Partners LLC Series Beta P.S., a Delaware limited liability company (“Greenle Beta” and, together with Greenle Alpha, “Greenle”). Greenle was the purchaser of 15% OID senior secured notes (the “Notes”) and warrants to purchase our common stock (“Warrants”) under certain securities purchase agreements and loan agreements between us and Greenle, including the Securities Purchase Agreement dated as of September 30, 2022, as amended by the letter agreement dated October 20, 2022, and the Loan Agreement dated as of November 23, 2022. Under the terms of the Note Extension and Conversion Agreement, Greenle has agreed to convert from time to time up to $ 3,000,000 1,000,000 3.00 1,250,000 3,000,000 874,474 |
RISKS AND UNCERTAINTIES
RISKS AND UNCERTAINTIES | 6 Months Ended |
Jun. 30, 2023 | |
Risks and Uncertainties [Abstract] | |
RISKS AND UNCERTAINTIES | 14 - RISKS AND UNCERTAINTIES The Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of cash. The Company places its cash with high quality credit institutions. At times, balances may be in excess of the Federal Deposit Insurance Corporation (“FDIC”) insurance limits. All accounts at an insured depository institution are insured by the FDIC up to the standard maximum deposit insurance of $ 250,000 |
MAJOR SALES CHANNELS
MAJOR SALES CHANNELS | 6 Months Ended |
Jun. 30, 2023 | |
Major Sales Channels | |
MAJOR SALES CHANNELS | 15 - MAJOR SALES CHANNELS The Company uses third-party sales channels to handle the reservations, collections, and other rental processes for most of the units. These sales channels represented over 90% |
STOCK OPTIONS AND WARRANTS
STOCK OPTIONS AND WARRANTS | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
STOCK OPTIONS AND WARRANTS | 16 - STOCK OPTIONS AND WARRANTS Options During the six months ended June 30, 2023, the Company granted options to purchase an aggregate of 75,000 2.61 The fair value of each option award was estimated on the date of grant using the Black-Scholes option valuation model using the assumptions noted as follows: expected volatility was based on the historical volatility of a peer group of companies; the expected term of options granted was determined using the simplified method under SAB 107, which represents the mid-point between the vesting term and the contractual term; and the risk-free rate is calculated using the U.S. Treasury yield curve and is based on the expected term of the option. The Black-Scholes option pricing model was used with the following weighted assumptions for options granted during the period: Schedule of Black-Scholes option pricing model was used with the following weighted assumptions for options granted Schedule of stock options and warrants assumptions June 30, Risk-free interest rate 0.52 4.92% Expected option life 6 48 Expected volatility 39.77 66.59% Expected dividend yield - Exercise price $ 1.40 4.00 The following table summarizes stock option activity for the three months ended June 30, 2023: Schedule of stock option activity Schedule of stock option activity Number of Weighted Weighted Aggregate Outstanding at December 31, 2022 1,910,484 $ 2.55 9.8 $ - Granted 75,000 2.61 Exercised - - Expired - - Forfeited (259,158 ) 2.03 Outstanding at June 30, 2023 1,726,326 $ 2.63 9.2 $ 1,472,448 Exercisable at June 30, 2023 50,000 $ 3.05 4.9 $ 5,000 The Company is expensing these stock option awards on a straight-line basis over the requisite service period. The Company recognized stock option expense of $ 204,814 372,387 1,393,537 2.1 A summary of the status of the Company’s nonvested options as of June 30, 2023, is presented below: Nonvested options Schedule of status of non vested options Number of Weighted Nonvested options at December 31, 2022 1,910,484 $ 2.55 Granted 75,000 2.61 Forfeited (259,158 ) 2.03 Vested 50,000 3.05 Nonvested options at June 30, 2023 1,676,326 2.62 Warrants In connection with certain private placements funded by certain of our officers and directors prior to our initial public offering, we issued notes and warrants. The warrants were contingent upon, and became effective only upon, consummation of our initial public offering on August 11, 2022. In total, 695,000 of such warrants were issued to certain of our officers and directors with a weighted average exercise price of $ 4.20 . These warrants are exercisable for five 5 Also, in conjunction with the initial public offering, the Company issued 135,000 4.40 5 Also, in connection with certain private placements with a third-party investor, the Company issued 920,000 4.00 5 32,000 4.40 5 On September 16, September 30, and October 20, 2022 in conjunction with a financing with the same third-party investor, we issued 517,500 352,188 366,562 4.00 On February 15, 2023 in conjunction with an advisory agreement, we issued 250,000 4.00 On April 16, 2023 in conjunction with an agreement with certain lenders, we issued 1,000,000 warrants with an exercise price of $3.00 per share and 250,000 warrants with an exercise price of $4.00 per share. Under this agreement, these lenders would be forced to convert under trigger prices ranging between $3.00 per share - $4.00 per share. On June 19, 2023, we modified this agreement to convert all of related outstanding debt within two trading days in exchange for a reduction in the exercise price of these warrants from $3.00 or $4.00 per share to $2.50 per share. 259,074 The following table summarizes warrant activity for the six months ended June 30, 2023: Schedule of warrant activity Number of Weighted Weighted Aggregate Outstanding at December 31, 2022 3,018,250 $ 2.64 4.8 $ - Issued 1,500,000 2.75 Exercised (2,556,250 ) 2.08 - Expired - - - Outstanding at June 30, 2023 1,962,000 $ 3.46 4.5 $ 552,500 Exercisable at June 30, 2023 1,712,000 $ 3.38 4.4 $ 552,500 During the six months ended June 30, 2023, 1,500,000 |
Revenue Share Exchange
Revenue Share Exchange | 6 Months Ended |
Jun. 30, 2023 | |
Revenue Share Exchange | |
Revenue Share Exchange | 17 - Revenue Share Exchange Under the terms of agreements entered into with Greenle, we were obligated to make quarterly payments (each a “Revenue Share”) to Greenle based on certain percentages of the revenues generated by certain of our leased properties during the term of the applicable leases (including any extensions thereof). As previously reported, on February 13, 2023, the Company and Greenle entered into an agreement pursuant to which certain Revenue Share payments for 2023 were converted into an obligation to issue shares of our common stock to Greenle in the amounts prescribed therein (the “February 2023 Revenue Share Agreement”), with all future Revenue Share obligations accruing on and after January 1, 2024 remaining in place. On May 21, 2023, we entered into a further agreement with Greenle (the “May 2023 Revenue Share Exchange Agreement”) pursuant to which the right to receive any and all Revenue Share with respect to any property or operations of the Company has been terminated in its entirety for 2024 and forever thereafter, and Greenle shall not be entitled to receive any payment therefor (other than the remaining periodic share issuances and cash payments under the February 2023 Revenue Share Agreement, all of which shall be completed by January 1, 2024). In consideration for the termination of the Revenue Share for 2024 and thereafter, we agreed to issue to Greenle, from time to time, in each case, at Greenle’s election upon 61 days’ prior written notice delivered to us on and after September 1, 2023 and before August 31, 2028, up to an aggregate of 6,740,000 shares of our common stock (the “Agreement Shares”). As a result of this transaction, we recorded interest expense of $ 28,174,148 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 18 - SUBSEQUENT EVENTS Warrant Exercises On July 5, 2023 and July 11, 2023, Greenle exercised its right to purchase an aggregate of 160,000 and 400,000 shares, respectively, of the Company’s common stock at an exercise price of $ 2.50 per share pursuant to rights underlying certain of its warrants that were issued pursuant to the April 2023 Letter Agreement. In connection with such exercise, the Company received aggregate gross proceeds of $ 1,400,000 . Wyndham Transaction On August 2, 2023, the Company entered into several agreements, including seventeen franchise agreements (each, a “Franchise Agreement”), with certain affiliates of Wyndham Hotels & Resorts, Inc. (collectively, “Wyndham”) pursuant to which the following hotels operated by the Company (the “Initial Properties”) will become part of the Trademark Collection® by Wyndham and Travelodge by Wyndham brands while staying under the operational control of the Company: Summary of Hotel Hotel Name Location Number of Rooms The Blakely Hotel New York City 117 The Herald Hotel New York City 167 The Washington New York City 217 The Astor Miami 42 The Impala Hotel Miami 17 La Flora Miami 31 BeHome New York City 44 The Bogart Hotel New York City 65 The Lafayette New Orleans 60 Georgetown Residences Washington, DC 80 The Variety Miami 68 12 th Miami 24 Townhouse Hotel Miami Beach Miami 70 O Hotel Los Angeles 68 Hotel 57 New York City 216 Condor Hotel New York City 35 Tuscany New York City 125 The Company expects rebranding of the Initial Properties, including the Initial Properties’ use of Wyndham booking channels, to be completed by December 2023. The Franchise Agreements have initial terms of 15 to 20 years and require Wyndham to provide financial, sales and operational-related support with respect to the Initial Properties. The Franchise Agreements contain customary representations, warranties, covenants, indemnification, liquidated damages and other terms for transactions of a similar nature, including customary membership and marketing fees in an initial aggregate amount of 6.0% of gross room revenue, increasing to 6.5% of gross room revenue over the term of the Franchise Agreements. Pursuant to the Franchise Agreements, the Company agreed to make certain property improvements, modifications and maintenance items (collectively, “Capital Improvements”), which the Company expects to complete over the next twelve months. In exchange for these Capital Improvements, Wyndham will provide capital through development advance notes (“Key Money”) to the Company for these Capital Improvements, which the Company expects will provide significant working or growth capital to the Company. Consistent with market practice, such Key Money will be evidenced by certain promissory notes with customary amortization and repayment terms. In conjunction with the Company’s entry into the Franchise Agreements, the Company paid a one-time, initial, nonrefundable franchise fee to Wyndham. As a result of entering into the Franchise Agreements, the Company expects to be subject to significantly reduced booking fees, inclusive of franchise and other fees, as a result of using the Wyndham booking platform. Conversely, to the extent that the Company continues to use third party online travel agencies for bookings, the Company expects to benefit from Wyndham’s lower online travel agency commission rates, while paying franchise fees and other fees on such booking activity, as a result of the Company’s entry into the Franchise Agreements. The Company expects that the net impact of the Franchise Agreements will be a material reduction to such fees in comparison to the Company’s previous operations. In addition to the Initial Properties, the Company and Wyndham are in the process of reviewing a pipeline of properties currently under letter of intent, already executed lease, or subject to an executed lease with the Company (such properties, “Pipeline Properties”). To the extent that the Company ultimately enters into master leasing agreements with respect to any such Pipeline Properties, the Company has set up a general framework to bring new LuxUrban properties onto the Wyndham platform and expects to add such Pipeline Properties to both the Company’s and Wyndham’s booking platforms. The Franchise Agreements provide for future commitments to Wyndham, and in return Wyndham has agreed to fund capital to the Company via Key Money on a property-by-property basis, which the Company expects will provide significant working or growth capital to the Company. The Company expects that any such working or growth capital provided by Wyndham will offset a percentage of the deposit money required. Wyndham has the ability to accept or reject properties to the platform on a property by property basis, subject to certain conditions, with a three-year right of first refusal. In conjunction with the Company’s entry into the Franchise Agreements and the positive impact such Franchise Agreements are expected to have on the Company, including the reduced costs mentioned above, the Company agreed to terms that incentivize Brian Ferdinand, the Company’s Chairman and Chief Executive Officer, to remain with the Company for an extended period of time, including the requirement of Brian Ferdinand to personally guaranty (the “Key Man Terms”) the Company’s obligations under the Franchise Agreements and Key Money during the term of the Franchise Agreements, with the ability of the Company to remove the Key Man Terms after five years. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | a. Basis of Presentation |
Revenue Recognition | b. Revenue Recognition The Company accounts for revenue in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 606 which was adopted at the beginning of fiscal year 2018 using the modified retrospective method. The Company did not recognize any cumulative-effect adjustment to retained earnings upon adoption as the effect was immaterial. Payment received for the future use of a rental unit is recognized as a liability and reported as rents received in advance on the balance sheets. Rents received in advance are recognized as revenue after the rental unit is occupied by the customer for the agreed upon length of time. The rents received in advance balance as of June 30, 2023 and December 31, 2022, was $ 3,092,972 2,566,504 |
Use of Estimates | c. Use of Estimates |
Cash and Cash Equivalents | d. Cash and Cash Equivalents 3,777,678 1,076,402 |
Fair Value of Financial Instruments | e. Fair Value of Financial Instruments |
Commissions | f. Commissions 1,482,609 4,556,142 1,393,128 2,690,298 |
Income Taxes | g. Income Taxes Accounting for Uncertainty in Income Taxes, The Company is subject to income taxes in the jurisdictions in which it operates. The Company accounts for 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. A valuation allowance is recorded for deferred tax assets if it is more likely than not that the deferred tax assets will not be realized. For the three and six months ended June 30, 2023, the Company recorded a tax provision of $ 1,893,039 2,015,200 750,000 750,000 |
Sales Tax | h. Sales Tax 523,220 229,371 |
Earnings Per Share (“EPS”) | i. Paycheck Protection Program Loan (“PPP”) j. Earnings Per Share (“EPS”) |
Substantial Doubt about Going Concern [Text Block] | |
Liquidity | k. Liquidity — 26,774,661 29,555,195 2,361,609 6,020,163 3,658,554 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Leases | |
Schedule of supplemental balance sheet information related to leases | Schedule of supplemental balance sheet information related to leases June 30, December 31, Operating lease right of use assets, net $ 177,480,671 $ 83,325,075 Operating lease liabilities, current portion $ 6,020,163 $ 4,293,085 Operating lease liabilities, net of current portion $ 178,312,362 $ 81,626,338 |
Schedule of future minimum lease payments under the non-cancelable operating leases | Schedule of future minimum lease payments under the non-cancelable operating leases Twelve Months Ending June 30, 2024 $ 24,876,852 2025 25,952,395 2026 26,668,314 2027 24,584,479 2028 23,318,299 Thereafter 229,191,543 Total lease payment $ 354,591,882 Less interest (170,259,357 ) Present value obligation 184,332,525 Short-term liability 6,020,163 Long-term liability 178,312,362 |
Schedule of other supplemental information related to operating lease | Schedule of other supplemental information related to operating lease June 30, 2023 Weighted average discount rate 10.5 % Weighted average remaining lease term (years) 16.6 Three Months Ended 2023 Six Months Ended Operating lease cost $ 7,295,880 $ 13,752,266 Short-term lease cost $ 131,506 $ 748,656 Total lease cost $ 7,427,386 $ 14,500,922 |
LOANS PAYABLE _ SBA _ PPP LOAN
LOANS PAYABLE — SBA — PPP LOAN (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Loans Payable Sba Ppp Loan | |
Schedule of future minimum principal repayments of the SBA, PPP loans payable | Schedule of future minimum principal repayments of the SBA, PPP loans payable For the Twelve Months Ending June 30, 2024 $ 276,658 |
LOANS PAYABLE _ SBA _ EIDL LO_2
LOANS PAYABLE — SBA — EIDL LOAN (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Loans Payable Sba Eidl Loan | |
Schedule of future minimum principal repayments of the SBA,EIDL loans payable | Schedule of future minimum principal repayments of the SBA,EIDL loans payable For the Twelve Months Ending June 30, 2024 $ 17,000 2025 15,106 2026 15,682 2027 16,280 2028 16,902 Thereafter 713,164 Total $ 794,134 |
LOANS PAYABLE (Tables)
LOANS PAYABLE (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Loans Payable | |
Schedule of loans payable | Schedule of loans payable June 30, 2023 December 31, 2022 Original borrowings of $ 250,000 1% no - 210,500 Original payable of $ 151,096 252,954 1,500 404,050 365,020 392,044 Original payable of $ 553,175 72,237 25,000 625,412 400,000 450,000 Original payable of $ 492,180 620,804 25,000 1,112,984 865,618 865,618 Borrowings of $ 9,075,000 638,388 5% no - 8,275,040 Original borrowings of $ 60,000 1% no 60,000 60,000 Original amounts due of $ 195,000 10,000 25,000 20,000 65,000 Original borrowing of $ 119,224 14,903 - 119,224 Other borrowing 28,610 225,929 Less: Current maturities 1,162,529 7,261,723 $ 576,720 $ 3,401,632 |
Schedule of future minimum principal repayments of the loans payable | Schedule of future minimum principal repayments of the loans payable For the Twelve Months Ending June 30, 2024 $ 1,162,529 2025 576,720 Loans payable $ 1,739,249 |
LOANS PAYABLE _ RELATED PARTI_2
LOANS PAYABLE — RELATED PARTIES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Loans Payable Related Parties | |
Schedule of loans payable, related parties | Schedule of loans payable, related parties June 30, December 31, 2023 2022 Original borrowings of $ 496,500 6% $ - $ 238,000 Less - 238,000 $ - $ - |
STOCK OPTIONS AND WARRANTS (Tab
STOCK OPTIONS AND WARRANTS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Schedule of stock options and warrants assumptions | Schedule of stock options and warrants assumptions June 30, Risk-free interest rate 0.52 4.92% Expected option life 6 48 Expected volatility 39.77 66.59% Expected dividend yield - Exercise price $ 1.40 4.00 |
Schedule of stock option activity | Schedule of stock option activity Number of Weighted Weighted Aggregate Outstanding at December 31, 2022 1,910,484 $ 2.55 9.8 $ - Granted 75,000 2.61 Exercised - - Expired - - Forfeited (259,158 ) 2.03 Outstanding at June 30, 2023 1,726,326 $ 2.63 9.2 $ 1,472,448 Exercisable at June 30, 2023 50,000 $ 3.05 4.9 $ 5,000 |
Schedule of status of non vested options | Schedule of status of non vested options Number of Weighted Nonvested options at December 31, 2022 1,910,484 $ 2.55 Granted 75,000 2.61 Forfeited (259,158 ) 2.03 Vested 50,000 3.05 Nonvested options at June 30, 2023 1,676,326 2.62 |
Schedule of warrant activity | Schedule of warrant activity Number of Weighted Weighted Aggregate Outstanding at December 31, 2022 3,018,250 $ 2.64 4.8 $ - Issued 1,500,000 2.75 Exercised (2,556,250 ) 2.08 - Expired - - - Outstanding at June 30, 2023 1,962,000 $ 3.46 4.5 $ 552,500 Exercisable at June 30, 2023 1,712,000 $ 3.38 4.4 $ 552,500 |
SUBSEQUENT EVENTS (Tables)
SUBSEQUENT EVENTS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Subsequent Events [Abstract] | |
Summary of Hotel | Summary of Hotel Hotel Name Location Number of Rooms The Blakely Hotel New York City 117 The Herald Hotel New York City 167 The Washington New York City 217 The Astor Miami 42 The Impala Hotel Miami 17 La Flora Miami 31 BeHome New York City 44 The Bogart Hotel New York City 65 The Lafayette New Orleans 60 Georgetown Residences Washington, DC 80 The Variety Miami 68 12 th Miami 24 Townhouse Hotel Miami Beach Miami 70 O Hotel Los Angeles 68 Hotel 57 New York City 216 Condor Hotel New York City 35 Tuscany New York City 125 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Jan. 02, 2022 | |
Accounting Policies [Abstract] | ||||||
Rents received in advance | $ 3,092,972 | $ 3,092,972 | $ 2,566,504 | |||
Cash and Cash Equivalents | 3,777,678 | 3,777,678 | 1,076,402 | |||
Pays commissions to third-party | 1,482,609 | $ 1,393,128 | 4,556,142 | $ 2,690,298 | ||
Provision for income taxes | 1,893,039 | 750,000 | 2,015,200 | 750,000 | ||
Accrued sales tax payable | 523,220 | 523,220 | 229,371 | |||
Net loss | 26,774,661 | $ (762,409) | 29,555,195 | $ (2,181,842) | ||
Working capital deficit | 2,361,609 | 2,361,609 | ||||
Operating lease liabilities, current portion | 6,020,163 | 6,020,163 | $ 4,293,085 | $ 7,370,890 | ||
Recognition of current asset | $ 3,658,554 | $ 3,658,554 |
LEASES (Details)
LEASES (Details) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 | Jan. 02, 2022 |
Leases | |||
Operating lease right of use assets, net | $ 177,480,671 | $ 83,325,075 | $ 36,304,289 |
Operating lease liabilities, current portion | 6,020,163 | 4,293,085 | 7,370,890 |
Operating lease liabilities, net of current portion | $ 178,312,362 | $ 81,626,338 | $ 29,884,584 |
LEASES (Details 1)
LEASES (Details 1) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 | Jan. 02, 2022 |
Leases | |||
2024 | $ 24,876,852 | ||
2025 | 25,952,395 | ||
2026 | 26,668,314 | ||
2027 | 24,584,479 | ||
2028 | 23,318,299 | ||
Thereafter | 229,191,543 | ||
Total lease payment | 354,591,882 | ||
Less interest | (170,259,357) | ||
Present value obligation | 184,332,525 | ||
Short-term liability | 6,020,163 | $ 4,293,085 | $ 7,370,890 |
Long-term liability | $ 178,312,362 | $ 81,626,338 | $ 29,884,584 |
LEASES (Details 2)
LEASES (Details 2) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 USD ($) | Jun. 30, 2023 USD ($) | |
Leases | ||
Weighted average discount rate | 10.50% | 10.50% |
Weighted average remaining lease term (years) | 16 years 7 months 6 days | 16 years 7 months 6 days |
Operating lease cost | $ 7,295,880 | $ 13,752,266 |
Short-term lease cost | 131,506 | 748,656 |
Total lease cost | $ 7,427,386 | $ 14,500,922 |
LEASES (Details Narrative)
LEASES (Details Narrative) - USD ($) | Jan. 02, 2022 | Jun. 30, 2023 | Dec. 31, 2022 |
Leases | |||
Operating lease right-of-use asset, net | $ 36,304,289 | $ 177,480,671 | $ 83,325,075 |
Operating Lease Liabilities - Current | 7,370,890 | 6,020,163 | 4,293,085 |
Operating Lease Liabilities - Noncurrent | 29,884,584 | $ 178,312,362 | $ 81,626,338 |
Cumulative effect adjustment of unamortized deferred lease costs incurred to retained earnings | $ 414,373 |
ACCOUNTS PAYABLE AND ACCRUED _2
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Details Narrative) - USD ($) | 6 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | |
Payables and Accruals [Abstract] | ||
Accounts payable and accrued expenses | $ 6,581,745 | $ 6,252,492 |
Accrued payroll and related liabilities | 1,405,000 | 1,570,000 |
Legal exposure | 975,000 | 805,000 |
Tax exposure | 847,000 | |
Printing | 347,000 | |
Credit cards payable | 265,000 | 507,000 |
Professional fee | 857,000 | 495,000 |
Utilities | 890,000 | |
Repairs and maintenance | 289,000 | |
Linens | 302,000 | |
Cleaning expense | 269,000 | |
Other miscellaneous items | 136,000 | 158,000 |
Accrued interest | 1,002,000 | |
Commissions | 572,000 | |
Sales and real estate taxes | 371,000 | |
Rent | 104,000 | |
Costs related to the initial public offering | 268,000 | |
Legal and accounting fees | 265,000 | |
Director fees | 135,000 | |
Accrued income taxes | $ 2,015,200 | $ 0 |
Accounts payable description | Of the legal amounts accrued, the company believes the accrual best estimates the most likely outcomes of these matters however the range of outcomes could be between $900,000–$1,500,000. |
LOANS PAYABLE - SBA - PPP LOAN
LOANS PAYABLE - SBA - PPP LOAN (Details) | Jun. 30, 2023 USD ($) |
Loans Payable Sba Ppp Loan | |
2024 | $ 276,658 |
LOANS PAYABLE _ SBA _ PPP LOA_2
LOANS PAYABLE — SBA — PPP LOAN (Details Narrative) - USD ($) | 1 Months Ended | |||||||
May 31, 2020 | Jun. 30, 2023 | Feb. 17, 2023 | Jan. 30, 2023 | Dec. 31, 2022 | Dec. 20, 2022 | Apr. 30, 2020 | Mar. 27, 2020 | |
Short-Term Debt [Line Items] | ||||||||
Original amount of loans payable | $ 2,079,686 | $ 1,250,000 | $ 3,000,000 | |||||
PPP Loan | ||||||||
Short-Term Debt [Line Items] | ||||||||
Original amount of loans payable | $ 10,000,000 | |||||||
Monthly payment of loans payable | $ 15,932 | |||||||
Interest rate of loans payable | 1% | |||||||
Accrued interest | $ 747 | $ 5,571 | ||||||
PPP Loan | SoBeNY [Member] | ||||||||
Short-Term Debt [Line Items] | ||||||||
Original amount of loans payable | $ 516,225 | |||||||
PPP Loan | Corphousing [Member] | ||||||||
Short-Term Debt [Line Items] | ||||||||
Original amount of loans payable | $ 298,958 |
LOANS PAYABLE - SBA - EIDL LOAN
LOANS PAYABLE - SBA - EIDL LOAN (Details) | Jun. 30, 2023 USD ($) |
Loans Payable Sba Eidl Loan | |
2024 | $ 17,000 |
2025 | 15,106 |
2026 | 15,682 |
2027 | 16,280 |
2028 | 16,902 |
Thereafter | 713,164 |
Total | $ 794,134 |
LOANS PAYABLE _ SBA _ EIDL LO_3
LOANS PAYABLE — SBA — EIDL LOAN (Details Narrative) | 1 Months Ended | 12 Months Ended | ||||||||||
Jul. 25, 2022 USD ($) | Jun. 18, 2022 USD ($) | Apr. 21, 2022 USD ($) | Dec. 31, 2020 USD ($) Item | Jun. 30, 2023 USD ($) | Feb. 17, 2023 USD ($) | Jan. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 20, 2022 USD ($) | Jul. 25, 2020 USD ($) | Jun. 18, 2020 USD ($) | Apr. 21, 2020 USD ($) | |
Short-Term Debt [Line Items] | ||||||||||||
Original amount of loans payable | $ 2,079,686 | $ 1,250,000 | $ 3,000,000 | |||||||||
EIDL | ||||||||||||
Short-Term Debt [Line Items] | ||||||||||||
Number of loans | Item | 3 | |||||||||||
Loan payable term | 30 years | |||||||||||
Interest rate of loans payable | 3.75% | |||||||||||
Prepayment penalty | $ 0 | |||||||||||
Loans payable - SBA - EIDL Loan | $ 794,134 | $ 800,000 | ||||||||||
Accrued interest | $ 27,644 | |||||||||||
EIDL | SoBeNY [Member] | ||||||||||||
Short-Term Debt [Line Items] | ||||||||||||
Interest rate of loans payable | 3.75% | 3.75% | ||||||||||
Original amount of loans payable | $ 150,000 | $ 500,000 | ||||||||||
Monthly payments of principal and interest | $ 731 | $ 2,437 | ||||||||||
EIDL | Corphousing [Member] | ||||||||||||
Short-Term Debt [Line Items] | ||||||||||||
Interest rate of loans payable | 3.75% | |||||||||||
Original amount of loans payable | $ 150,000 | |||||||||||
Monthly payments of principal and interest | $ 731 |
SHORT-TERM BUSINESS FINANCING (
SHORT-TERM BUSINESS FINANCING (Details Narrative) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Short-term Business Financing | ||
Merchant cash advances net of unamortized fees | $ 1,706,836 | $ 2,003,015 |
LOANS PAYABLE (Details)
LOANS PAYABLE (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2023 | Dec. 31, 2022 | Feb. 17, 2023 | Jan. 30, 2023 | Dec. 20, 2022 | |
Short-Term Debt [Line Items] | |||||
Original amount of loans payable | $ 2,079,686 | $ 1,250,000 | $ 3,000,000 | ||
Loans payable | $ 1,739,249 | ||||
Other borrowing | 28,610 | $ 225,929 | |||
Less: Current maturities | 1,162,529 | 7,261,723 | |||
Loans payable non current | 576,720 | 3,401,632 | |||
Original borrowings of $250,000, bears interest at 1%, requires no payments until maturity in January 2024 | |||||
Short-Term Debt [Line Items] | |||||
Original amount of loans payable | $ 250,000 | $ 250,000 | |||
Interest rate of loans payable | 1% | 1% | |||
Additional borrowings | $ 0 | $ 0 | |||
Loans payable | 210,500 | ||||
Original payable of $151,096 with additional net borrowings of $89,154, requires monthly payments of $1,500 until total payments of $240,250 have been made | |||||
Short-Term Debt [Line Items] | |||||
Original amount of loans payable | 151,096 | 151,096 | |||
Additional borrowings | 252,954 | 252,954 | |||
Loans payable | 365,020 | 392,044 | |||
Monthly payment of loans payable | 1,500 | 1,500 | |||
Total payments made | 404,050 | 404,050 | |||
Original payable of $553,175 with additional net borrowings of $125,412, requires monthly payments of $25,000 until total payments of $678,587 have been made | |||||
Short-Term Debt [Line Items] | |||||
Original amount of loans payable | 553,175 | 553,175 | |||
Additional borrowings | 72,237 | 72,237 | |||
Loans payable | 400,000 | 450,000 | |||
Monthly payment of loans payable | 25,000 | 25,000 | |||
Total payments made | 625,412 | 625,412 | |||
Original payable of $492,180, requires monthly payments of $25,000 until total payments of $492,180 have been made | |||||
Short-Term Debt [Line Items] | |||||
Original amount of loans payable | 492,180 | 492,180 | |||
Additional borrowings | 620,804 | 620,804 | |||
Loans payable | 865,618 | 865,618 | |||
Monthly payment of loans payable | 25,000 | 25,000 | |||
Total payments made | 1,112,984 | 1,112,984 | |||
Original borrowings of $4,580,000 and unamortized original issue discount of $453,750, bears interest at 5%, requires no payments until maturity in May 2023 | |||||
Short-Term Debt [Line Items] | |||||
Original amount of loans payable | $ 9,075,000 | $ 9,075,000 | |||
Interest rate of loans payable | 5% | 5% | |||
Additional borrowings | $ 0 | $ 0 | |||
Loans payable | 8,275,040 | ||||
Debt Instrument, unamortized discount | 638,388 | 638,388 | |||
Original borrowings of $60,000, bears interest at 1%, requires no payments until maturity in January 2024 | |||||
Short-Term Debt [Line Items] | |||||
Original amount of loans payable | $ 60,000 | $ 60,000 | |||
Interest rate of loans payable | 1% | 1% | |||
Additional borrowings | $ 0 | $ 0 | |||
Loans payable | 60,000 | 60,000 | |||
Original amounts due of $195,000, related to services provided by a vendor, requires monthly payments of $10,000 through May 2022, then monthly payments of $25,000 through August 2022 at which time any remaining balance is due | |||||
Short-Term Debt [Line Items] | |||||
Original amount of loans payable | 195,000 | 195,000 | |||
Additional borrowings | 10,000 | 10,000 | |||
Loans payable | 20,000 | 65,000 | |||
Monthly payment of loans payable | 25,000 | 25,000 | |||
Original borrowing of $119,224 with monthly payments $14,903 | |||||
Short-Term Debt [Line Items] | |||||
Original amount of loans payable | 119,224 | 119,224 | |||
Loans payable | $ 119,224 | ||||
Monthly payment of loans payable | $ 14,903 |
LOANS PAYABLE (Details 1)
LOANS PAYABLE (Details 1) | Jun. 30, 2023 USD ($) |
Loans Payable | |
2024 | $ 1,162,529 |
2025 | 576,720 |
Loans payable | $ 1,739,249 |
LOANS PAYABLE - RELATED PARTIES
LOANS PAYABLE - RELATED PARTIES (Details) - USD ($) | Jun. 30, 2023 | Feb. 17, 2023 | Jan. 30, 2023 | Dec. 31, 2022 | Dec. 20, 2022 |
Short-Term Debt [Line Items] | |||||
Original amount of loans payable | $ 2,079,686 | $ 1,250,000 | $ 3,000,000 | ||
Less: Current maturities | $ 238,000 | ||||
Loans payable - related parties, non current | |||||
Original borrowings of $496,500, bears interest at 6%. Lender is a stockholder of the Company | Lender, Stockholder of the Company | |||||
Short-Term Debt [Line Items] | |||||
Original amount of loans payable | $ 496,500 | $ 496,500 | |||
Interest rate of loans payable | 6% | 6% | |||
Loans payable - related parties | $ 238,000 |
LOANS PAYABLE _ RELATED PARTI_3
LOANS PAYABLE — RELATED PARTIES (Details Narrative) | 1 Months Ended |
May 31, 2023 USD ($) | |
Common Stock [Member] | |
Shares issued for repayment of debt | $ 58,088 |
CONVERTIBLE NOTES (Details Narr
CONVERTIBLE NOTES (Details Narrative) - USD ($) | 1 Months Ended | 6 Months Ended | ||||
Mar. 31, 2023 | Feb. 17, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Jan. 30, 2023 | Dec. 20, 2022 | |
Convertible Notes | ||||||
Aggregate principal amount | $ 2,079,686 | $ 1,250,000 | $ 3,000,000 | |||
Maturity date | Aug. 17, 2023 | |||||
Loss on extinguishment of debt | $ 58,579 | $ (58,579) | ||||
Repayment of convertible debt | $ 808,000 | |||||
Outstanding notes amount | $ 0 |
LINE OF CREDIT (Details Narrati
LINE OF CREDIT (Details Narrative) - USD ($) | 6 Months Ended | ||
Jun. 30, 2023 | Dec. 31, 2022 | Feb. 28, 2019 | |
Line of Credit Facility [Line Items] | |||
Line of credit outstanding balance | $ 94,975 | $ 94,975 | |
Line of Credit [Member] | |||
Line of Credit Facility [Line Items] | |||
Amount borrowed under convertible credit line | $ 95,000 | ||
Interest rate, variable | 3.49% | ||
Line of Credit [Member] | Prime Rate [Member] | |||
Line of Credit Facility [Line Items] | |||
Interest rate, stated | 8.25% |
SECURITY DEPOSIT LETTER OF CR_2
SECURITY DEPOSIT LETTER OF CREDIT (Details Narrative) - USD ($) | Jun. 30, 2023 | Jan. 31, 2023 | Dec. 31, 2022 | Nov. 30, 2022 |
Line of Credit Facility [Line Items] | ||||
Security deposit letter of credit | $ 3,500,000 | $ 2,500,000 | ||
Letter of Credit [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Security deposit letter of credit | $ 1,000,000 | $ 2,500,000 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
Feb. 28, 2023 | Dec. 20, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Feb. 17, 2023 | Jan. 30, 2023 | |
Related Party Transaction [Line Items] | ||||||||
Aggregate principal amount | $ 3,000,000 | $ 2,079,686 | $ 1,250,000 | |||||
Conversion of common stock shares | 1,000,000 | |||||||
Conversion price | $ 3 | |||||||
Debt amount converted | $ 3,000,000 | |||||||
Provided Conversion Shares | 874,474 | |||||||
General and Administrative Expense [Member] | Consulting Services [Member] | SuperLuxMia LLC, By A Firm By Stockholder [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Transaction amount with related parties | $ 0 | $ 0 | $ 0 | $ 192,000 |
RISKS AND UNCERTAINTIES (Detail
RISKS AND UNCERTAINTIES (Details Narrative) | Jun. 30, 2023 USD ($) |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Three Sales Channels [Member] | |
Concentration Risk [Line Items] | |
FDIC insured amount | $ 250,000 |
MAJOR SALES CHANNELS (Details N
MAJOR SALES CHANNELS (Details Narrative) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Three Sales Channels [Member] | ||||
Product Information [Line Items] | ||||
Total rental revenue, percentage | 90% | 90% | 90% | 90% |
STOCK OPTIONS AND WARRANTS (Det
STOCK OPTIONS AND WARRANTS (Details) | 6 Months Ended |
Jun. 30, 2023 $ / shares | |
Risk-free interest rate, minimum | 0.52% |
Risk-free interest rate, maximum | 4.92% |
Expected volatility, minimum | 39.77% |
Expected volatility, maximum | 66.59% |
Expected dividend yield | (0.00%) |
Minimum [Member] | |
Expected option life | 6 months |
Exercise price | $ 1.40 |
Maximum [Member] | |
Expected option life | 48 months |
Exercise price | $ 4 |
STOCK OPTIONS AND WARRANTS (D_2
STOCK OPTIONS AND WARRANTS (Details 1) | 6 Months Ended |
Jun. 30, 2023 USD ($) $ / shares shares | |
Equity [Abstract] | |
Outstanding at the beginning (in shares) | shares | 1,910,484 |
Outstanding at the beginning (in dollars per shares) | $ / shares | $ 2.55 |
Weighted Average Remaining Contractual Life (years) | 9 years 9 months 18 days |
Aggregate intrinsic value, outstanding at the beginning | $ | |
Granted (in shares) | shares | 75,000 |
Granted (in dollars per shares) | $ / shares | $ 2.61 |
Exercised (in shares) | shares | |
Exercised (in dollars per shares) | $ / shares | |
Expired (in shares) | shares | |
Expired (in dollars per shares) | $ / shares | |
Forfeited (in shares) | shares | (259,158) |
Forfeited (in dollars per shares) | $ / shares | $ 2.03 |
Outstanding at the end (in shares) | shares | 1,726,326 |
Outstanding at the end (in dollars per shares) | $ / shares | $ 2.63 |
Weighted Average Remaining Contractual Life (years) | 9 years 2 months 12 days |
Aggregate intrinsic value, outstanding at the end | $ | $ 1,472,448 |
Number of share exercisable | shares | 50,000 |
Weighted Average Exercise Price exercisable | $ / shares | $ 3.05 |
Weighted Average Remaining Contractual Life (years) | 4 years 10 months 24 days |
Aggregate Intrinsic Value exercisable | $ | $ 5,000 |
STOCK OPTIONS AND WARRANTS (D_3
STOCK OPTIONS AND WARRANTS (Details 2) | 6 Months Ended |
Jun. 30, 2023 $ / shares shares | |
Equity [Abstract] | |
Nonvested options at the beginning | shares | 1,910,484 |
Nonvested options at the beginning (in dollars per share) | $ / shares | $ 2.55 |
Granted | shares | 75,000 |
Granted (in dollars per share) | $ / shares | $ 2.61 |
Forfeited | shares | (259,158) |
Forfeited (in dollars per share) | $ / shares | $ 2.03 |
Vested | shares | 50,000 |
Vested (in dollars per share) | $ / shares | $ 3.05 |
Nonvested options at the end | shares | 1,676,326 |
Nonvested options at the end (in dollars per share) | $ / shares | $ 2.62 |
STOCK OPTIONS AND WARRANTS (D_4
STOCK OPTIONS AND WARRANTS (Details 3) | 6 Months Ended |
Jun. 30, 2023 USD ($) $ / shares shares | |
Equity [Abstract] | |
Outstanding at the beginning | shares | 3,018,250 |
Outstanding at the beginning (in dollars per share) | $ / shares | $ 2.64 |
Outstanding at the beginning (in years) | 4 years 9 months 18 days |
Aggregate Intrinsic Value at the beginning | $ | |
Issued | shares | 1,500,000 |
Issued (in dollars per share) | $ / shares | $ 2.75 |
Exercised | shares | (2,556,250) |
Exercised (in dollars per share) | $ / shares | $ 2.08 |
Expired | shares | |
Expired (in dollars per share) | $ / shares | |
Outstanding at the end | shares | 1,962,000 |
Outstanding at the end (in dollars per share) | $ / shares | $ 3.46 |
Outstanding at the end (in years) | 4 years 6 months |
Aggregate Intrinsic Value at the end | $ | $ 552,500 |
Exercisable | shares | 1,712,000 |
Exercisable (in dollars per share) | $ / shares | $ 3.38 |
Exercisable (in years) | 4 years 4 months 24 days |
Aggregate intrinsic value exercisable | $ | $ 552,500 |
STOCK OPTIONS AND WARRANTS (D_5
STOCK OPTIONS AND WARRANTS (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||
Aug. 11, 2022 | Apr. 16, 2023 | Feb. 15, 2023 | Oct. 20, 2022 | Sep. 30, 2022 | Sep. 16, 2022 | Jun. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | |
Subsidiary, Sale of Stock [Line Items] | |||||||||
Number of aggregate shares granted | 75,000 | ||||||||
Weighted average exercise price | $ 2.61 | ||||||||
Stock option expense | $ 204,814 | $ 372,387 | |||||||
Unamortized option expense | $ 1,393,537 | $ 1,393,537 | |||||||
Unamortized option expense expected to be recognized over a weighted average period | 2 years 1 month 6 days | ||||||||
Issued | 1,500,000 | ||||||||
Weighted average exercise price | $ 3.46 | $ 3.46 | $ 2.64 | ||||||
Transaction losses | $ 259,074 | ||||||||
Letter Agreement [Member] | |||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Warrants description | in conjunction with an agreement with certain lenders, we issued 1,000,000 warrants with an exercise price of $3.00 per share and 250,000 warrants with an exercise price of $4.00 per share. Under this agreement, these lenders would be forced to convert under trigger prices ranging between $3.00 per share - $4.00 per share. On June 19, 2023, we modified this agreement to convert all of related outstanding debt within two trading days in exchange for a reduction in the exercise price of these warrants from $3.00 or $4.00 per share to $2.50 per share. | ||||||||
Officers and directors [Member] | IPO [Member] | |||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Issued | 695,000 | ||||||||
Weighted average exercise price | $ 4.20 | ||||||||
Warrants exercisable term | 5 years | ||||||||
Underwriter [Member] | |||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Issued | 135,000 | ||||||||
Weighted average exercise price | $ 4.40 | ||||||||
Warrants exercisable term | 5 years | ||||||||
Third-party Investor [Member] | |||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Issued | 920,000 | 366,562 | 352,188 | 517,500 | |||||
Weighted average exercise price | $ 4 | $ 4 | $ 4 | $ 4 | |||||
Warrants exercisable term | 5 years | ||||||||
Maxim [Member] | Private Placement [Member] | |||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Issued | 32,000 | ||||||||
Weighted average exercise price | $ 4.40 | ||||||||
Warrants exercisable term | 5 years | ||||||||
Advisory [Member] | |||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Issued | 250,000 | ||||||||
Weighted average exercise price | $ 4 |
Revenue Share Exchange (Details
Revenue Share Exchange (Details Narrative) | 60 Months Ended |
Aug. 31, 2028 USD ($) | |
Revenue Share Exchange | |
Interest Expenses | $ 28,174,148 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Subsequent Event [Member] | Aug. 02, 2023 Item |
The Blakely Hotel [Member] | |
Subsequent Event [Line Items] | |
Hotel Name | The Blakely Hotel |
Location | New York City |
Number of Rooms | 117 |
The Herald Hotel [Member] | |
Subsequent Event [Line Items] | |
Hotel Name | The Herald Hotel |
Location | New York City |
Number of Rooms | 167 |
The Washington [Member] | |
Subsequent Event [Line Items] | |
Hotel Name | The Washington |
Location | New York City |
Number of Rooms | 217 |
The Astor [Member] | |
Subsequent Event [Line Items] | |
Hotel Name | The Astor |
Location | Miami |
Number of Rooms | 42 |
The Impala Hotel [Member] | |
Subsequent Event [Line Items] | |
Hotel Name | The Impala Hotel |
Location | Miami |
Number of Rooms | 17 |
La Flora [Member] | |
Subsequent Event [Line Items] | |
Hotel Name | La Flora |
Location | Miami |
Number of Rooms | 31 |
Be Home [Member] | |
Subsequent Event [Line Items] | |
Hotel Name | BeHome |
Location | New York City |
Number of Rooms | 44 |
The Bogart Hotel [Member] | |
Subsequent Event [Line Items] | |
Hotel Name | The Bogart Hotel |
Location | New York City |
Number of Rooms | 65 |
The Lafayette [Member] | |
Subsequent Event [Line Items] | |
Hotel Name | The Lafayette |
Location | New Orleans |
Number of Rooms | 60 |
Georgetown Residences [Member] | |
Subsequent Event [Line Items] | |
Hotel Name | Georgetown Residences |
Location | Washington, DC |
Number of Rooms | 80 |
The Variety [Member] | |
Subsequent Event [Line Items] | |
Hotel Name | The Variety |
Location | Miami |
Number of Rooms | 68 |
N 12th And Ocean Apartments [Member] | |
Subsequent Event [Line Items] | |
Hotel Name | 12th and Ocean Apartments |
Location | Miami |
Number of Rooms | 24 |
Townhouse Hotel Miami Beach [Member] | |
Subsequent Event [Line Items] | |
Hotel Name | Townhouse Hotel Miami Beach |
Location | Miami |
Number of Rooms | 70 |
O Hotel [Member] | |
Subsequent Event [Line Items] | |
Hotel Name | O Hotel |
Location | Los Angeles |
Number of Rooms | 68 |
Hotel 57 [Member] | |
Subsequent Event [Line Items] | |
Hotel Name | Hotel 57 |
Location | New York City |
Number of Rooms | 216 |
Condor Hotel [Member] | |
Subsequent Event [Line Items] | |
Hotel Name | Condor Hotel |
Location | New York City |
Number of Rooms | 35 |
Tuscany [Member] | |
Subsequent Event [Line Items] | |
Hotel Name | Tuscany |
Location | New York City |
Number of Rooms | 125 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - USD ($) | 1 Months Ended | 6 Months Ended | ||||
Jul. 11, 2023 | Jul. 05, 2023 | Apr. 30, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Subsequent Event [Line Items] | ||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 3.46 | $ 2.64 | ||||
Proceeds from Warrant Exercises | $ 5,312,502 | |||||
Greenle [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Proceeds from Warrant Exercises | $ 1,400,000 | |||||
Subsequent Event [Member] | Greenle [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Stock Repurchased During Period, Shares | 400,000 | 160,000 | ||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 2.50 |