First Hartford (FHRT) 10-Q 10 Oct 17 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Jul. 31, 2017	Oct. 06, 2017
Document And Entity Information [Abstract]
Entity Registrant Name	FIRST HARTFORD CORP
Entity Central Index Key	36,369
Document Type	10-Q
Document Period End Date	Jul. 31, 2017
Amendment Flag	false
Current Fiscal Year End Date	--04-30
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		2,315,799
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,018

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)	Jul. 31, 2017	Apr. 30, 2017
Real estate and equipment:
Developed properties and property under construction (including $78,114,859 in July and $77,898,958 in April for VIEs)	$ 238,883,938	$ 236,865,867
Equipment and tenant improvements (including $2,446,428 in July and $2,424,964 in April for VIEs)	4,206,723	3,689,442
Total Real estate and equipment, Gross	243,090,661	240,555,309
Less accumulated depreciation and amortization (including $16,447,144 in July and $15,918,495 in April for VIEs)	(48,685,410)	(47,449,316)
Net Real estate and equipment	194,405,251	193,105,993
Property held for sale	2,209,034	11,389,591
Cash and cash equivalents (including $2,512,323 in July and $2,063,103 in April for VIEs)	7,145,794	6,250,757
Cash and cash equivalents - restricted (including $12,398 in July and $396,361 in April for VIEs)	287,683	526,012
Marketable securities (including $1,361,812 in July and $1,538,839 in April for VIEs)	1,361,812	1,538,839
Accounts and notes receivable, less allowance for doubtful accounts of $127,423 as of July 31, 2017 and $135,002 as of April 30, 2017 (including $100,583 in July and $66,543 in April for VIEs)	4,128,421	3,505,541
Other receivables	3,409,636	4,064,876
Deposits and escrow accounts (including $8,514,565 in July and $8,866,586 in April for VIEs)	15,819,894	15,930,999
Prepaid expenses (including $560,435 in July and $327,481 in April for VIEs)	2,109,974	1,644,320
Deferred expenses (including $163,058 in July and $167,273 in April for VIEs)	4,390,477	5,712,547
Investments in affiliates	100	100
Due from related parties and affiliates	2,972	152,776
Deferred tax asset	399,388	671,147
Total assets	235,670,436	244,493,498
Mortgages and notes payable:
Construction loans payable	28,027,318	26,929,537
Mortgages payable (including $64,352,785 in July and $64,598,997 in April for VIEs)	190,859,403	195,763,409
Notes payable (including $1,704,697 in July and $1,704,697 in April for VIEs)	1,704,697	1,704,697
Lines of credit	1,400,000	6,400,000
Less: Deferred debt issuance costs, net (including $1,558,752 in July and $1,575,494 in April for VIEs)	(3,134,493)	(3,067,098)
Total Mortgages and other notes payable	218,856,925	227,730,545
Accounts payable (including $640,328 in July and $569,600 in April for VIEs)	2,860,120	2,915,400
Other payables	4,100,536	4,966,246
Accrued liabilities (including $3,369,771 in July and $3,382,307 in April for VIEs)	6,643,823	5,699,875
Derivative liability	2,227,698	2,023,793
Deferred income (including $226,276 in July and $227,936 in April for VIEs)	492,729	622,461
Other liabilities	1,256,050	1,328,909
Due to related parties and affiliates (including $448,457 in July and $446,990 in April for VIEs)	600,310	598,843
Total liabilities	237,038,191	245,886,072
First Hartford Corporation:
Preferred stock, $1 par value; $.50 cumulative and convertible; authorized 4,000,000 shares; no shares issued and outstanding	0	0
Common stock, $1 par value; authorized 6,000,000 shares; issued 3,211,843 and 3,236,843 shares and outstanding 2,315,799 and 2,340,799 shares as of July 31, 2017 and April 30, 2017	3,211,843	3,236,843
Capital in excess of par	5,043,779	5,093,779
Accumulated deficit	(5,370,001)	(5,612,263)
Accumulated other comprehensive income	0	0
Treasury stock, at cost, 896,044 and 896,044 shares as of July 31, 2017 and April 30, 2017	(4,989,384)	(4,989,384)
Total First Hartford Corporation	(2,103,763)	(2,271,025)
Noncontrolling interests	736,008	878,451
Total shareholders' equity (deficiency)	(1,367,755)	(1,392,574)
Total liabilities and shareholders' equity (deficiency)	$ 235,670,436	$ 244,493,498

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Jul. 31, 2017	Apr. 30, 2017
Developed properties and property under construction	$ 238,883,938	$ 236,865,867
Equipment and tenant improvements	4,206,723	3,689,442
Real estate investment property, Accumulated depreciation and amortization	48,685,410	47,449,316
Cash and cash equivalents, at Carrying Value	7,145,794	6,250,757
Restricted Cash and cash equivalents	287,683	526,012
Marketable securities	1,361,812	1,538,839
Accounts and notes receivable, net	4,128,421	3,505,541
Deposits and escrow accounts	15,819,894	15,930,999
Prepaid expenses	2,109,974	1,644,320
Deferred expenses	4,390,477	5,712,547
Mortgages payable	190,859,403	195,763,409
Notes payable	1,704,697	1,704,697
Deferred debt issuance costs	(3,134,493)	(3,067,098)
Accounts payable	2,860,120	2,915,400
Accrued liabilities	6,643,823	5,699,875
Deferred income	492,729	622,461
Due to related parties and affiliates	$ 600,310	$ 598,843
Preferred Stock par value (in dollars per share)	$ 1	$ 1
Preferred stock, cumulative and convertible par value (in dollars per share)	$ 0.50	$ .50
Preferred Stock, shares authorized (in shares)	4,000,000	4,000,000
Preferred Stock, shares issued (in shares)	0	0
Preferred Stock, shares outstanding (in shares)	0	0
Common Stock, par value (in dollars per share)	$ 1	$ 1
Common Stock, shares authorized (in shares)	6,000,000	6,000,000
Common Stock, shares issued (in shares)	3,211,843	3,236,843
Common Stock, shares outstanding (in shares)	2,315,799	2,340,799
Treasury stock, at cost, shares (in shares)	896,044	896,044
Variable Interest Entity, Primary Beneficiary [Member]
Developed properties and property under construction	$ 78,114,859	$ 77,898,958
Equipment and tenant improvements	2,446,428	2,424,964
Real estate investment property, Accumulated depreciation and amortization	16,447,144	15,918,495
Cash and cash equivalents, at Carrying Value	2,512,323	2,063,103
Restricted Cash and cash equivalents	12,398	396,361
Marketable securities	1,361,812	1,538,839
Accounts and notes receivable, net	100,583	66,543
Allowance for doubtful accounts	127,423	135,002
Deposits and escrow accounts	8,514,565	8,866,586
Prepaid expenses	560,435	327,481
Deferred expenses	163,058	167,273
Mortgages payable	64,352,785	64,598,997
Notes payable	1,704,697	1,704,697
Deferred debt issuance costs	(1,558,752)	(1,575,494)
Accounts payable	640,328	569,600
Accrued liabilities	3,369,771	3,382,307
Deferred income	226,276	227,936
Due to related parties and affiliates	$ 448,457	$ 446,990
Preferred Stock par value (in dollars per share)	$ 1	$ 1
Preferred stock, cumulative and convertible par value (in dollars per share)	$ 0.50	$ 0.50
Preferred Stock, shares authorized (in shares)	4,000,000	4,000,000
Preferred Stock, shares issued (in shares)	0	0
Preferred Stock, shares outstanding (in shares)	0	0
Common Stock, par value (in dollars per share)	$ 1	$ 1
Common Stock, shares authorized (in shares)	6,000,000	6,000,000
Common Stock, shares issued (in shares)	3,211,843	3,236,843
Common Stock, shares outstanding (in shares)	2,315,799	2,340,799
Treasury stock, at cost, shares (in shares)	896,044	896,044

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended
	Jul. 31, 2017	Jul. 31, 2016
Operating revenues:
Rental income	$ 7,796,540	$ 8,066,447
Service income	640,563	1,228,605
Sales of real estate	21,360,000	12,210,051
Other revenues	1,222,265	993,554
Total Operating revenues	31,019,368	22,498,657
Operating costs and expenses:
Rental expenses	4,974,166	5,099,712
Service expenses	1,239,990	1,193,326
Cost of real estate sales	18,623,718	9,623,667
Selling, general and administrative expenses	2,924,064	1,843,825
Total Operating costs and expenses	27,761,938	17,760,530
Income from operations	3,257,430	4,738,127
Non-operating income (expense):
Interest expense	(2,629,789)	(2,589,494)
Other income/ (loss)	(83,418)	21,460
Loss on derivatives (non-cash)	(203,905)	(793,169)
Equity in earnings of unconsolidated subsidiaries	162,860	177,126
Total Non-operating income (expense)	(2,754,252)	(3,184,077)
Income before income taxes	503,178	1,554,050
Income tax expense	365,489	811,647
Consolidated net income	137,689	742,403
Net income attributable to noncontrolling interests	104,573	84,451
Net income attributable to First Hartford Corporation	$ 242,262	$ 826,854
Net income per share - basic	$ 0.10	$ 0.35
Net income per share - diluted	$ 0.10	$ 0.35
Shares used in basic per share computation	2,328,299	2,391,078
Shares used in diluted per share computation	2,328,299	2,391,078

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($)	3 Months Ended
	Jul. 31, 2017	Jul. 31, 2016
Statement of Comprehensive Income [Abstract]
Consolidated net income	$ 137,689	$ 742,403
Other comprehensive income / (loss), net of taxes:
Unrealized gains / (losses) on marketable securities	100,386	(131,304)
Total comprehensive income	238,075	611,099
Amounts attributable to noncontrolling interests:
Net (income)	104,573	84,451
Unrealized (gains) / losses on marketable securities	(100,386)	131,304
Total amounts attributable to noncontrolling interests	4,187	215,755
Comprehensive income attributable to First Hartford Corporation	$ 242,262	$ 826,854

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	3 Months Ended
	Jul. 31, 2017	Jul. 31, 2016
Operating activities:
Consolidated net income	$ 137,689	$ 742,403
Adjustments to reconcile consolidated net income to net cash provided by / (used in) operating activities:
Equity in earnings of unconsolidated subsidiaries, net of distributions of $90,000 in 2017 and $90,000 in 2016	(72,859)	(87,126)
Gain on sale of real estate	(2,736,282)	(2,586,384)
Depreciation of real estate and equipment	1,366,512	1,318,924
Amortization of deferred expenses	135,663	232,903
Deferred income taxes	271,759	505,819
Loss on derivatives	203,905	793,169
Changes in operating assets and liabilities:
Accounts, notes and other receivables	32,360	1,191,407
Deposits and escrow accounts	232,025	1,626,526
Prepaid expenses	(465,654)	(415,608)
Deferred expenses	1,119,012	(2,064,363)
Cash and cash equivalents - restricted	238,329	369,135
Accrued liabilities	943,948	(284,131)
Deferred income	(129,732)	583,011
Accounts and other payables	(920,990)	(2,738,244)
Net cash provided by / (used in) operating activities	355,685	(812,559)
Investing activities:
Investments in marketable securities	(96,946)	0
Proceeds from sale of marketable securities	374,359	0
Purchase of equipment and tenant improvements	(647,699)	(61,272)
Proceeds from sale of real estate	21,360,000	12,210,051
Additions to developed properties and properties under construction	(11,461,232)	(4,684,042)
Net cash provided by investing activities	9,528,482	7,464,737
Financing activities:
Distributions to noncontrolling interests	(138,256)	(108,650)
Repurchase of common stock	(75,000)	(79,968)
Proceeds from:
Construction loans	7,793,353	1,785,458
Mortgage loans	2,876,407	920,310
Notes	0	0
Credit lines	0	375,000
Principal payments on:
Construction loans	(1,127,899)	(7,385,755)
Mortgage loans	(13,469,006)	(2,071,417)
Notes	0	0
Credit lines	(5,000,000)	0
Payments (to) / from related parties and affiliates, net	151,271	(498,968)
Net cash used in financing activities	(8,989,130)	(7,063,990)
Net change in cash and cash equivalents	895,037	(411,812)
Cash and cash equivalents, beginning of period	6,250,757	5,982,506
Cash and cash equivalents, end of period	7,145,794	5,570,694
Cash paid during the period for interest	2,672,437	2,497,810
Cash paid during the period for income taxes	60,750	249,148
Debt refinancing in 1st quarter:
New mortgage loans	8,565,000	14,300,000
Debt reduced	(5,567,673)	(5,359,713)
Escrow funded	(120,920)	(8,019,977)
Net cash from refinancing in 1st quarter	$ 2,876,407	$ 920,310

CONDENSED CONSOLIDATED STATEME7

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($)	3 Months Ended
	Jul. 31, 2017	Jul. 31, 2016
Statement of Cash Flows [Abstract]
Distributions from unconsolidated subsidiaries	$ 90,000	$ 90,000

1. Business and Significant Acc

1. Business and Significant Accounting Policies	3 Months Ended
	Jul. 31, 2017
Accounting Policies [Abstract]
Business and Significant Accounting Policies	Business First Hartford Corporation, which was incorporated in Maine in 1909, and its subsidiaries (the Company), is engaged in two business segments: 1) the purchase, development, ownership, management and sale of real estate and 2) providing preferred developer services for two corporate franchise operators (i.e., “Fee for Service”). Principles of Consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company, its wholly owned subsidiaries, and all other entities in which the Company has a controlling financial interest, including those where the Company has been determined to be a primary beneficiary of a variable interest entity or meets certain criteria as a sole general partner or managing member in accordance with the consolidation guidance of the Financial Accounting Standards Board Accounting Standards Codification. As such, included in the unaudited condensed consolidated financial statements are the accounts of Rockland Place Apartments Limited Partnership and Clarendon Hill Somerville Limited Partnership, in which the Company is the sole general partner. The Company’s ownership percentage in these variable interest entity partnerships is nominal. All significant intercompany balances and transactions have been eliminated. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Rule 8.03 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals and adjustments) considered necessary for a fair presentation have been included. Operating results for the interim periods are not necessarily indicative of the results that may be expected for the entire year. The condensed consolidated balance sheet as of April 30, 2017 was derived from the audited financial statements for the year then ended. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s annual report on Form 10-K for the fiscal year ended April 30, 2017. Because the Company is engaged in the development and sale of real estate at various stages of construction, the operating cycle may extend beyond one year. Accordingly, following the usual practice of the real estate industry, the accompanying condensed consolidated balance sheets are unclassified. Currently, there are no Accounting Standards Updates (ASUs) that the Company is required to adopt that are likely to have a material effect on its financial statements that have not been previously discussed in the Company’s annual report on Form 10-K for the fiscal year ended April 30, 2017. Net Income (Loss) Per Common Share Basic income (loss) per share is computed by dividing the net income (loss) attributable to the common stockholders (the numerator) by the weighted average number of shares of common stock outstanding (the denominator) during the reporting periods. Diluted income (loss) per share is computed by increasing the denominator by the weighted average number of additional shares that could have been outstanding from securities convertible into common stock, such as stock options and warrants (using the “treasury stock” method). There were no common stock equivalents outstanding at July 31, 2017 or July 31, 2016. Financial Instruments and Fair Value The Company’s financial instruments include cash and cash equivalents, accounts receivable, marketable securities, accounts payable, accrued expenses, and debt. The fair values of accounts receivable, accounts payable and accrued expenses are estimated to approximate their carrying amounts because of their relative short-term nature. In general, the carrying amount of variable rate debt approximates its fair value. Further, the carrying amount of fixed rate debt approximates fair value since the interest rates on the debt approximates the Company’s current incremental borrowing rate. Marketable securities consist of equity securities and are stated at fair value based on the last sale of the period obtained from recognized stock exchanges (i.e. Level 1). Accumulated other comprehensive (loss) income consists solely of unrealized gains (losses) on marketable securities. Segment Information The factors used by the Company to identify reportable segments include differences in products and services and segregated operations within the Company. The first segment, “Real Estate Operations” participates in the purchase, development, management, ownership and sale of real estate. Within its second segment, “Fee for Service”, the Company provides preferred developer services to CVS and Cumberland Farms Inc. in certain geographic areas. Summary financial information for the two reportable segments is as follows: Three Months Ended July 31, 2017 2016 Revenues: Real Estate Operations $ 30,506,118 $ 21,424,657 Fee for Service 513,250 1,074,000 Total $ 31,019,368 $ 22,498,657 Operating Costs & Expenses: Real Estate Operations $ 23,961,465 $ 14,758,360 Fee for Service 876,409 1,158,345 Administrative Expenses 2,924,064 1,843,825 Total $ 27,761,938 $ 17,760,530 All costs after operating expenses are costs of the real estate operation. The only assets in the balance sheet belonging to the Fee for Service segment is restricted cash of $275,285 on July 31, 2017 and $129,651 on April 30, 2017 and receivables of $3,458,604 on July 31, 2017 and $4,262,302 on April 30, 2017.

2. Consolidated Variable Intere

2. Consolidated Variable Interest Entities and Investments in Affiliated Partnerships	3 Months Ended
	Jul. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Consolidated Variable Interest Entities and Investments in Affiliated Partnerships	The Company has consolidated both Rockland and Clarendon based on the express legal rights and obligations provided to it by the underlying partnership agreements and its control of their business activity. The assets of these partnerships that can only be used to settle their obligations and their liabilities for which creditors (or beneficial interest holders) do not have recourse to the general credit of the Company are shown parenthetically in the line items of the consolidated balance sheets. A summary of the assets and liabilities of Rockland and Clarendon included in the Company’s condensed consolidated balance sheets follows: July 31, 2017 April 30, 2017 Real estate and equipment, net $ 66,412,486 $ 66,732,664 Other assets 13,223,182 13,417,929 Total assets 79,635,668 80,150,593 Intercompany profit elimination (2,690,250 ) (2,719,143 ) $ 76,945,418 $ 77,431,450 Mortgages and other notes payable $ 64,498,730 $ 64,728,200 Other liabilities 4,234,460 4,179,842 Total liabilities $ 68,733,190 $ 68,908,042 The Company accounts for its 50% ownership interest in Dover Parkade, LLC under the equity method of accounting. A summary of the operating results for this entity follows: Three Months Ended July 31, 2017 2016 Dover Parkade, LLC: Revenue $ 701,909 $ 683,913 Expenses (556,190 ) (509,662 ) Net income $ 145,719 $ 174,251

3. Income Taxes

3. Income Taxes	3 Months Ended
	Jul. 31, 2017
Income Tax Disclosure [Abstract]
Income Taxes	The Company files a Federal consolidated tax return to report all income and deductions for its subsidiaries. The Company and its subsidiaries file income tax returns in several states. The tax returns are filed by the entity that owns the real estate or provides services in such state. Some states do not allow a consolidated or combined tax filing. This sometimes creates income taxes to be greater than expected as income for some subsidiaries cannot be offset by other subsidiaries with operating losses.

4. Litigation

4. Litigation	3 Months Ended
	Jul. 31, 2017
Litigation
Litigation	Following a site inspection of asbestos abatement activities being conducted at the Spring Gate Apartments in Rockland, Massachusetts (Facility) on April 14, 2017, the Massachusetts Department of Environmental Protection (MassDEP) by letter dated April 21, 2017 requested that Rockland Place Apartments, LP (Company) temporarily cease and desist from any additional asbestos removal, abatement and/or handling activities at the Facility. Upon receipt of the MassDEP letter, the Company engaged MassDEP in discussions regarding the abatement project. Following submission to and approval by MassDEP of a work plan addressing the issues raised in MassDEP’s April 21 letter, MassDEP permitted the asbestos abatement work to go forward. There have been no further enforcement actions taken by MassDEP. By letters dated May 15, May 16 and May 30, 2017, three attorneys representing tenants in three units at the Facility notified the Company and/or its management company, FHRC Management Corporation, of claims related to environmental conditions at the Facility. The first of these letters alleges that the tenant and her family have been exposed to and have been living in an apartment containing asbestos for many years. The second letter claims that the tenant and her three minor children have suffered injuries believed to be caused by the presence of mold and asbestos in the apartment. The final letter asserts claims with respect to the tenant and her three minor children involving the presence and remediation of asbestos including violation of a tenant’s quiet enjoyment, breach of the warranty of habitability, causation of emotional distress and the use of unfair and deceptive practices under M.G.L. c. 93A. The first two letters made no specific monetary demand; the third letter demanded $312,600. All three claims were tendered to the Company’s insurer, which agreed to respond under a reservation of rights. On July 14, 2017, counsel retained by the insurer provided a timely response to the third letter, adamantly denying the Company’s liability pursuant to M.G.L. c. 93A or for any of the other claims. By letter dated July 27, 2017, the insurer acknowledged receipt of the three claims, at the same time stating however that as no lawsuit had arisen, it did not have a duty to defend, but nonetheless would continue to investigate. At this time, the Company cannot assess the likelihood of an unfavorable outcome or provide any estimate of the amount or range of any potential loss. There has been no other change in litigation since April 30, 2017.

5. Refinancings

5. Refinancings	3 Months Ended
	Jul. 31, 2017
Debt Disclosure [Abstract]
Refinancings	New Orleans, LA – Refinance

6. Purchases of Real Estate

6. Purchases of Real Estate	3 Months Ended
	Jul. 31, 2017
Real Estate [Abstract]
Purchases of Real Estate	Houston, TX – Land Purchase Loan Amount: $8,600,000 Maturity Date: November 15, 2018 Interest Rate: 2.50% plus One Month ICE LIBOR rate, as defined, up to maturity date and 12.0% thereafter. Payments: Interest only payable monthly with principal due at maturity. Guarantee: The Company (Corporate).

7. Subsequent Events

7. Subsequent Events	3 Months Ended
	Jul. 31, 2017
Subsequent Events [Abstract]
Subsequent Events	The Company has evaluated for subsequent events through October 10, 2017, the date the financial statements were issued. Montgomery, TX – Land Purchase Loan Amount: $4,150,000 Maturity Date: February 16, 2019 Interest Rate: 3.50% plus One Month ICE LIBOR rate, as defined, up to maturity date and 12.0% thereafter. Payments: Interest only payable monthly with principal due at maturity. Guarantee: The Company (Corporate). East Providence, RI – Sale of Property

1. Business and Significant A15

1. Business and Significant Accounting Policies (Policies)	3 Months Ended
	Jul. 31, 2017
Accounting Policies [Abstract]
Business	Business First Hartford Corporation, which was incorporated in Maine in 1909, and its subsidiaries (the Company), is engaged in two business segments: 1) the purchase, development, ownership, management and sale of real estate and 2) providing preferred developer services for two corporate franchise operators (i.e., “Fee for Service”).
Principles of Consolidation	Principles of Consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company, its wholly owned subsidiaries, and all other entities in which the Company has a controlling financial interest, including those where the Company has been determined to be a primary beneficiary of a variable interest entity or meets certain criteria as a sole general partner or managing member in accordance with the consolidation guidance of the Financial Accounting Standards Board Accounting Standards Codification. As such, included in the unaudited condensed consolidated financial statements are the accounts of Rockland Place Apartments Limited Partnership and Clarendon Hill Somerville Limited Partnership, in which the Company is the sole general partner. The Company’s ownership percentage in these variable interest entity partnerships is nominal. All significant intercompany balances and transactions have been eliminated.
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Rule 8.03 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals and adjustments) considered necessary for a fair presentation have been included. Operating results for the interim periods are not necessarily indicative of the results that may be expected for the entire year. The condensed consolidated balance sheet as of April 30, 2017 was derived from the audited financial statements for the year then ended. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s annual report on Form 10-K for the fiscal year ended April 30, 2017. Because the Company is engaged in the development and sale of real estate at various stages of construction, the operating cycle may extend beyond one year. Accordingly, following the usual practice of the real estate industry, the accompanying condensed consolidated balance sheets are unclassified. Currently, there are no Accounting Standards Updates (ASUs) that the Company is required to adopt that are likely to have a material effect on its financial statements that have not been previously discussed in the Company’s annual report on Form 10-K for the fiscal year ended April 30, 2017.
Net Income (Loss) Per Common Share	Net Income (Loss) Per Common Share Basic income (loss) per share is computed by dividing the net income (loss) attributable to the common stockholders (the numerator) by the weighted average number of shares of common stock outstanding (the denominator) during the reporting periods. Diluted income (loss) per share is computed by increasing the denominator by the weighted average number of additional shares that could have been outstanding from securities convertible into common stock, such as stock options and warrants (using the “treasury stock” method). There were no common stock equivalents outstanding at July 31, 2017 or July 31, 2016.
Financial Instruments and Fair Value	Financial Instruments and Fair Value The Company’s financial instruments include cash and cash equivalents, accounts receivable, marketable securities, accounts payable, accrued expenses, and debt. The fair values of accounts receivable, accounts payable and accrued expenses are estimated to approximate their carrying amounts because of their relative short-term nature. In general, the carrying amount of variable rate debt approximates its fair value. Further, the carrying amount of fixed rate debt approximates fair value since the interest rates on the debt approximates the Company’s current incremental borrowing rate. Marketable securities consist of equity securities and are stated at fair value based on the last sale of the period obtained from recognized stock exchanges (i.e. Level 1). Accumulated other comprehensive (loss) income consists solely of unrealized gains (losses) on marketable securities.
Segment Information	Segment Information The factors used by the Company to identify reportable segments include differences in products and services and segregated operations within the Company. The first segment, “Real Estate Operations” participates in the purchase, development, management, ownership and sale of real estate. Within its second segment, “Fee for Service”, the Company provides preferred developer services to CVS and Cumberland Farms Inc. in certain geographic areas. Summary financial information for the two reportable segments is as follows: Three Months Ended July 31, 2017 2016 Revenues: Real Estate Operations $ 30,506,118 $ 21,424,657 Fee for Service 513,250 1,074,000 Total $ 31,019,368 $ 22,498,657 Operating Costs & Expenses: Real Estate Operations $ 23,961,465 $ 14,758,360 Fee for Service 876,409 1,158,345 Administrative Expenses 2,924,064 1,843,825 Total $ 27,761,938 $ 17,760,530 All costs after operating expenses are costs of the real estate operation. The only assets in the balance sheet belonging to the Fee for Service segment is restricted cash of $275,285 on July 31, 2017 and $129,651 on April 30, 2017 and receivables of $3,458,604 on July 31, 2017 and $4,262,302 on April 30, 2017.

1. Business and Significant A16

1. Business and Significant Accounting Policies (Tables)	3 Months Ended
	Jul. 31, 2017
Accounting Policies [Abstract]
Schedule of Segment Reporting Information, by Segment	Three Months Ended July 31, 2017 2016 Revenues: Real Estate Operations $ 30,506,118 $ 21,424,657 Fee for Service 513,250 1,074,000 Total $ 31,019,368 $ 22,498,657 Operating Costs & Expenses: Real Estate Operations $ 23,961,465 $ 14,758,360 Fee for Service 876,409 1,158,345 Administrative Expenses 2,924,064 1,843,825 Total $ 27,761,938 $ 17,760,530

2. Consolidated Variable Inte17

2. Consolidated Variable Interest Entities and Investments in Affiliated Partnerships (Tables)	3 Months Ended
	Jul. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Summary of assets and liabilities of Rockland and Clarendon	July 31, 2017 April 30, 2017 Real estate and equipment, net $ 66,412,486 $ 66,732,664 Other assets 13,223,182 13,417,929 Total assets 79,635,668 80,150,593 Intercompany profit elimination (2,690,250 ) (2,719,143 ) $ 76,945,418 $ 77,431,450 Mortgages and other notes payable $ 64,498,730 $ 64,728,200 Other liabilities 4,234,460 4,179,842 Total liabilities $ 68,733,190 $ 68,908,042
Schedule of the operating results of Dover Parkade, LLC	Three Months Ended July 31, 2017 2016 Dover Parkade, LLC: Revenue $ 701,909 $ 683,913 Expenses (556,190 ) (509,662 ) Net income $ 145,719 $ 174,251

6. Purchases of Real Estate (Ta

6. Purchases of Real Estate (Tables)	3 Months Ended
	Jul. 31, 2017
Real Estate [Abstract]
Real estate purchase details	Loan Amount: $8,600,000 Maturity Date: November 15, 2018 Interest Rate: 2.50% plus One Month ICE LIBOR rate, as defined, up to maturity date and 12.0% thereafter. Payments: Interest only payable monthly with principal due at maturity. Guarantee: The Company (Corporate).

1. Business and Significant A19

1. Business and Significant Accounting Policies (Details-Segment) - USD ($)	3 Months Ended
	Jul. 31, 2017	Jul. 31, 2016
Revenues:
TOTAL	$ 31,019,368	$ 22,498,657
Operating Costs & Expenses:
TOTAL	27,761,938	17,760,530
Real Estate Operations [Member]
Revenues:
TOTAL	30,506,118	21,424,657
Operating Costs & Expenses:
TOTAL	23,961,465	14,758,360
Fee for Service [Member]
Revenues:
TOTAL	513,250	1,074,000
Operating Costs & Expenses:
TOTAL	876,409	1,158,345
Administrative Expense [Member]
Operating Costs & Expenses:
TOTAL	$ 2,924,064	$ 1,843,825

1. Business and Significant A20

1. Business and Significant Accounting Policies (Details Narrative) - USD ($)	3 Months Ended
	Jul. 31, 2017	Jul. 31, 2016	Apr. 30, 2017
Accounting Policies [Line Items]
Common stock equivalents	0	0
Restricted cash	$ 287,683		$ 526,012
Receivables	3,409,636		4,064,876
Fee for Service [Member]
Accounting Policies [Line Items]
Restricted cash	275,285		129,651
Receivables	$ 3,458,604		$ 4,262,302

2. Consolidated Variable Inte21

2. Consolidated Variable Interest Entities and Investments in Affiliated Partnerships (Details-Assets and Liabilities) - USD ($)	Jul. 31, 2017	Apr. 30, 2017
Segment Reporting, Asset Reconciling Item [Line Items]
Real estate and equipment, net	$ 194,405,251	$ 193,105,993
Total assets	235,670,436	244,493,498
Mortgages and other notes payable	218,856,925	227,730,545
Other liabilities	1,256,050	1,328,909
Total liabilities	237,038,191	245,886,072
Rockland and Clarendon [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Real estate and equipment, net	66,412,486	66,732,664
Other assets	13,223,182	13,417,929
Total assets	79,635,668	80,150,593
Intercompany profit elimination	(2,690,250)	(2,719,143)
Total assets	76,945,418	77,431,450
Mortgages and other notes payable	64,498,730	64,728,200
Other liabilities	4,234,460	4,179,842
Total liabilities	$ 68,733,190	$ 68,908,042

2. Consolidated Variable Inte22

2. Consolidated Variable Interest Entities and Investments in Affiliated Partnerships (Details-operating results) - Dover Parkade, LLC [Member] - USD ($)	3 Months Ended
	Jul. 31, 2017	Jul. 31, 2016
Revenue	$ 701,909	$ 683,913
Expenses	(556,190)	(509,662)
Net Income	$ 145,719	$ 174,251

2. Consolidated Variable Inte23

2. Consolidated Variable Interest Entities and Investments in Affiliated Partnerships (Details Narrative)	Jul. 31, 2017
Dover Parkade, LLC [Member]
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Ownership Percentage	50.00%

5. Refinancings (Details Narrat

5. Refinancings (Details Narrative) - New Orleans [Member]	3 Months Ended
	Jul. 31, 2017USD ($)
Construction Loan [Member]
Construction loan refinanced	$ 5,567,673
Mortgage Loan [Member]
Mortgage loan, periodic payment terms	$44,576 monthly
Mortgage loan payable	$ 8,565,000
Debt maturity date	Jul. 1, 2027
Debt stated interest rate	4.75%

6. Purchases of Real Estate (De

6. Purchases of Real Estate (Details) - Houston, Texas [Member]	3 Months Ended
	Jul. 31, 2017USD ($)
Loan amount	$ 8,600,000
Debt maturity date	Nov. 15, 2018
Debt interest rate	2.50% plus One Month ICE LIBOR rate, as defined, up to maturity date and 12.0% thereafter.
Debt payment terms	Interest only payable monthly with principal due at maturity.
Debt guarantors	The Company (Corporate).

6. Purchases of Real Estate (26

6. Purchases of Real Estate (Details Narrative) - USD ($)	Jul. 31, 2017	May 12, 2017	Apr. 30, 2017
Construction loans payable	$ 28,027,318		$ 26,929,537
Lines of credit	$ 1,400,000		$ 6,400,000
Houston, Texas [Member]
Land cost		$ 8,583,235
Construction loans payable		5,158,210
Lines of credit		2,400,000
Working capital		$ 1,025,025