First Hartford (FHRT) 10-Q 29 Mar 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Jan. 31, 2018	Mar. 29, 2018
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	Jan. 31, 2018
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	Q3
Document Fiscal Year Focus	2,018

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)	Jan. 31, 2018	Apr. 30, 2017
Real estate and equipment:
Developed properties and property under construction (including $79,359,489 in January and $77,898,958 in April for VIEs)	$ 246,740,814	$ 236,865,867
Equipment and tenant improvements (including $2,522,591 in January and $2,424,964 in April for VIEs)	4,300,989	3,689,442
Total real estate and equipment, gross	251,041,803	240,555,309
Less accumulated depreciation and amortization (including $17,500,627 in January and $15,918,495 in April for VIEs)	(51,435,113)	(47,449,316)
Net real estate and equipment	199,606,690	193,105,993
Property held for sale	12,261,143	11,389,591
Cash and cash equivalents (including $2,444,000 in January and $2,063,103 in April for VIEs)	6,958,982	6,250,757
Cash and cash equivalents - restricted (including $378,929 in January and $396,361 in April for VIEs)	652,599	526,012
Marketable securities (including $816,575 in January and $1,538,839 in April for VIEs)	816,575	1,538,839
Accounts and notes receivable, less allowance for doubtful accounts of $70,419 as of January 31, 2018 and $135,002 as of April 30, 2017 (including $142,312 in January and $66,543 in April for VIEs)	3,278,121	3,505,541
Other receivables	2,319,665	4,064,876
Deposits and escrow accounts (including $7,679,909 in January and $8,866,586 in April for VIEs)	14,914,468	15,930,999
Prepaid expenses (including $311,029 in January and $327,481 in April for VIEs)	1,998,252	1,644,320
Deferred expenses (including $154,627 in January and $167,273 in April for VIEs)	5,266,655	5,712,547
Investments in affiliates	379,747	100
Due from related parties and affiliates	2,672	152,776
Deferred tax asset	706,627	671,147
Total assets	249,162,196	244,493,498
Mortgages and notes payable:
Construction loans payable	36,981,466	26,929,537
Mortgages payable (including $63,852,897 in January and $64,598,997 in April for VIEs)	192,932,566	195,763,409
Notes payable (including $1,704,697 in January and $1,704,697 in April for VIEs)	1,704,697	1,704,697
Lines of credit	6,760,000	6,400,000
Less: Deferred debt issuance costs, net (including $1,529,700 in January and $1,575,494 in April for VIEs)	(3,069,646)	(3,067,098)
Total Mortgages and other notes payable	235,309,083	227,730,545
Accounts payable (including $730,129 in January and $569,600 in April for VIEs)	4,403,062	2,915,400
Other payables	3,413,573	4,966,246
Accrued liabilities (including $3,468,365 in January and $3,382,307 in April for VIEs)	5,512,452	5,699,875
Derivative liability	1,551,002	2,023,793
Deferred income (including $222,956 in January and $227,936 in April for VIEs)	534,584	622,461
Other liabilities	1,037,871	1,328,909
Due to related parties and affiliates (including $459,875 in January and $446,990 in April for VIEs)	611,728	598,843
Total liabilities	252,373,355	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 January 31, 2018 and April 30, 2017	3,211,843	3,236,843
Capital in excess of par	5,043,779	5,093,779
Accumulated deficit	(6,943,846)	(5,612,263)
Accumulated other comprehensive income	0	0
Treasury stock, at cost, 896,044 and 896,044 shares as of January 31, 2018 and April 30, 2017	(4,989,384)	(4,989,384)
Total First Hartford Corporation	(3,677,608)	(2,271,025)
Noncontrolling interests	466,449	878,451
Total shareholders' equity (deficiency)	(3,211,159)	(1,392,574)
Total liabilities and shareholders' equity (deficiency)	$ 249,162,196	$ 244,493,498

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Jan. 31, 2018	Apr. 30, 2017
Developed properties and property under construction	$ 246,740,814	$ 236,865,867
Equipment and tenant improvements	4,300,989	3,689,442
Real estate investment property, Accumulated depreciation and amortization	51,435,113	47,449,316
Cash and cash equivalents, at Carrying Value	6,958,982	6,250,757
Restricted Cash and cash equivalents	652,599	526,012
Marketable securities	816,575	1,538,839
Accounts and notes receivable, net	3,278,121	3,505,541
Deposits and escrow accounts	14,914,468	15,930,999
Prepaid expenses	1,998,252	1,644,320
Deferred expenses	5,266,655	5,712,547
Mortgages payable	192,932,566	195,763,409
Notes payable	1,704,697	1,704,697
Deferred debt issuance costs	(3,069,646)	(3,067,098)
Accounts payable	4,403,062	2,915,400
Accrued liabilities	5,512,452	5,699,875
Deferred income	534,584	622,461
Due to related parties and affiliates	$ 611,728	$ 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	$ 79,359,489	$ 77,898,958
Equipment and tenant improvements	2,522,591	2,424,964
Real estate investment property, Accumulated depreciation and amortization	17,500,627	15,918,495
Cash and cash equivalents, at Carrying Value	2,444,000	2,063,103
Restricted Cash and cash equivalents	378,929	396,361
Marketable securities	816,575	1,538,839
Accounts and notes receivable, net	142,312	66,543
Allowance for doubtful accounts	70,419	135,002
Deposits and escrow accounts	7,679,909	8,866,586
Prepaid expenses	311,029	327,481
Deferred expenses	154,627	167,273
Mortgages payable	63,852,897	64,598,997
Notes payable	1,704,697	1,704,697
Deferred debt issuance costs	(1,529,700)	(1,575,494)
Accounts payable	730,129	569,600
Accrued liabilities	3,468,365	3,382,307
Deferred income	222,956	227,936
Due to related parties and affiliates	$ 459,875	$ 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 INCOME (LOSS) (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Jan. 31, 2018	Jan. 31, 2017	Jan. 31, 2018	Jan. 31, 2017
Operating revenues:
Rental income	$ 7,812,600	$ 8,095,209	$ 23,355,145	$ 24,023,744
Service income	1,019,805	1,099,684	3,264,005	3,928,067
Sales of real estate	1,629,504	15,778,442	23,819,504	34,373,493
Other revenues	1,740,702	1,077,452	4,601,747	2,984,212
Total Operating revenues	12,202,611	26,050,787	55,040,401	65,309,516
Operating costs and expenses:
Rental expenses	5,563,034	4,949,847	15,555,914	15,115,039
Service expenses	1,215,882	1,333,691	4,151,167	3,863,958
Cost of real estate sales	653,812	13,589,022	19,941,842	27,692,903
Selling, general and administrative expenses	3,146,547	2,460,473	9,951,570	6,907,319
Total Operating costs and expenses	10,579,275	22,333,033	49,600,493	53,579,219
Income from operations	1,623,336	3,717,754	5,439,908	11,730,297
Non-operating income (expense):
Interest expense	(2,619,516)	(2,524,603)	(7,833,720)	(7,707,422)
Other income/ (loss)	70,023	30,745	195,249	69,850
Loss on impairment	(40,000)	0	(40,000)	0
Gain (loss) on derivatives (non-cash)	598,688	2,883,917	472,791	2,427,052
Loss on defeasance	0	(437,776)	0	(437,776)
Equity in earnings of unconsolidated subsidiaries	203,506	182,654	561,038	546,016
Total Non-operating income (expense)	(1,787,299)	134,937	(6,644,642)	(5,102,280)
Income/ (loss) before income taxes	(163,963)	3,852,691	(1,204,734)	6,628,017
Income tax expense	40,563	565,065	69,168	1,617,159
Consolidated net income (loss)	(204,526)	3,287,626	(1,273,902)	5,010,858
Net (income) loss attributable to noncontrolling interests	(111,495)	(1,202,072)	(57,681)	(1,191,218)
Net income (loss) attributable to First Hartford Corporation	$ (316,021)	$ 2,085,554	$ (1,331,583)	$ 3,819,640
Net income (loss) per share - basic	$ (0.14)	$ 0.88	$ (0.57)	$ 1.60
Net income (loss) per share - diluted	$ (0.14)	$ 0.88	$ (0.57)	$ 1.60
Shares used in basic per share computation	2,315,799	2,377,565	2,322,049	2,384,321
Shares used in diluted per share computation	2,315,799	2,377,565	2,322,049	2,384,321

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Jan. 31, 2018	Jan. 31, 2017	Jan. 31, 2018	Jan. 31, 2017
Statement of Comprehensive Income [Abstract]
Consolidated net income (loss)	$ (204,526)	$ 3,287,626	$ (1,273,902)	$ 5,010,858
Other comprehensive income (loss), net of taxes:
Unrealized gains (losses) on marketable securities	(91,871)	160,436	3,820	77,517
Total comprehensive income (loss)	(296,397)	3,448,062	(1,270,082)	5,088,375
Amounts attributable to noncontrolling interests:
Net (income) loss	(111,495)	(1,202,072)	(57,681)	(1,191,218)
Unrealized (gains) losses on marketable securities	91,871	(160,436)	(3,820)	(77,517)
Total amounts attributable to noncontrolling interests	(19,624)	(1,362,508)	(61,501)	(1,268,735)
Comprehensive income (loss) attributable to First Hartford Corporation	$ (316,021)	$ 2,085,554	$ (1,331,583)	$ 3,819,640

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	9 Months Ended
	Jan. 31, 2018	Jan. 31, 2017
Operating activities:
Consolidated net income / (loss)	$ (1,273,902)	$ 5,010,858
Adjustments to reconcile consolidated net income (loss) to net cash provided by / (used in) operating activities:
Equity in earnings of unconsolidated subsidiaries, net of distributions of $270,000 in 2018 and $270,000 in 2017	(291,038)	(276,016)
Gain on sale of real estate	(3,877,662)	(6,680,590)
Depreciation of real estate and equipment	4,204,507	4,064,791
Amortization of deferred expenses	419,301	541,234
Deferred income taxes	(35,480)	1,240,005
Loss on impairment	40,000	0
Loss / (gain) on derivatives	(472,791)	(2,427,052)
Changes in operating assets and liabilities:
Accounts, notes and other receivables	1,972,631	799,770
Deposits and escrow accounts	1,137,451	3,705,133
Prepaid expenses	(353,932)	(213,589)
Deferred expenses	24,043	(4,711,238)
Cash and cash equivalents - restricted	(126,587)	1,335,563
Accrued liabilities	(187,423)	(1,621,513)
Deferred income	(87,877)	(134,402)
Accounts and other payables	(65,011)	(2,224,997)
Net cash provided by / (used in) operating activities	1,026,230	(1,592,043)
Investing activities:
Investments in marketable securities	(151,864)	0
Proceeds from sale of marketable securities	877,947	642,596
Purchase of equipment and tenant improvements	(900,545)	(125,762)
Investments in affiliated companies	(379,647)	0
Proceeds from sale of real estate	23,819,504	34,373,493
Additions to developed properties and properties under construction	(30,658,053)	(25,253,629)
Net cash provided by / (used in) investing activities	(7,392,658)	9,636,698
Financing activities:
Distributions to noncontrolling interests	(473,502)	(1,087,469)
Repurchase of common stock	(75,000)	(79,968)
Proceeds from:
Construction loans	17,385,201	10,086,324
Mortgage loans	7,526,407	10,564,657
Notes	0	0
Credit lines	5,360,000	1,625,000
Principal payments on:
Construction loans	(1,765,599)	(13,051,475)
Mortgage loans	(16,045,843)	(12,720,675)
Notes	0	(40,000)
Credit lines	(5,000,000)	(2,027,091)
Payments (to) / from related parties and affiliates, net	162,989	150,207
Net cash provided by / (used in) financing activities	7,074,653	(6,580,490)
Net change in cash and cash equivalents	708,225	1,464,165
Cash and cash equivalents, beginning of period	6,250,757	5,982,506
Cash and cash equivalents, end of period	6,958,982	7,446,671
Cash paid during the period for interest	7,662,401	7,532,799
Cash paid during the period for income taxes	147,410	346,316
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
Debt refinancing in 2nd quarter:
New mortgage loans	0	32,500,000
Debt reduced	0	(31,030,767)
Escrow funded	0	(1,100,000)
Net cash from refinancing in 2nd quarter	0	369,233
Debt refinancing in 3rd quarter:
New mortgage loans	0	21,186,745
Debt reduced	0	(18,139,103)
Escrow funded	0	(1,392,528)
Net cash from refinancing in 3rd quarter	$ 0	$ 1,655,114

CONDENSED CONSOLIDATED STATEME7

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($)	9 Months Ended
	Jan. 31, 2018	Jan. 31, 2017
Statement of Cash Flows [Abstract]
Distributions from unconsolidated subsidiaries	$ 270,000	$ 270,000

1. Business and Significant Acc

1. Business and Significant Accounting Policies	9 Months Ended
	Jan. 31, 2018
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 January 31, 2018 or January 31, 2017. 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 Nine Months Ended January 31 January 31 2018 2017 2018 2017 Revenues: Real Estate Operations $ 11,467,236 $ 25,115,037 $ 52,389,651 $ 61,809,016 Fee for Service 735,375 935,750 2,650,750 3,500,500 Total $ 12,202,611 $ 26,050,787 $ 55,040,401 $ 65,309,516 Operating Costs & Expenses: Real Estate Operations $ 6,522,259 $ 18,534,933 $ 36,758,328 $ 42,844,271 Fee for Service 910,469 1,337,627 2,890,595 3,827,629 Administrative Expenses 3,146,547 2,460,473 9,951,570 6,907,319 Total $ 10,579,275 $ 22,333,033 $ 49,600,493 $ 53,579,219 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 $273,670 on January 31, 2018 and $129,651 on April 30, 2017 and receivables of $2,340,854 on January 31, 2018 and $4,262,302 on April 30, 2017.

2. Consolidated Variable Intere

2. Consolidated Variable Interest Entities and Investments in Affiliated Partnerships	9 Months Ended
	Jan. 31, 2018
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: January 31, 2018 April 30, 2017 Real estate and equipment, net $ 66,622,012 $ 66,732,664 Other assets 11,912,971 13,417,929 Total assets 78,534,983 80,150,593 Intercompany profit elimination (2,632,463 ) (2,719,143 ) $ 75,902,520 $ 77,431,450 Mortgages and other notes payable $ 64,027,894 $ 64,728,200 Other liabilities 4,415,581 4,179,842 Total liabilities $ 68,443,475 $ 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 Nine Months Ended January 31, 2018 January 31, 2017 January 31, 2018 January 31, 2017 Dover Parkade, LLC: Revenue $ 715,049 $ 673,655 $ 2,125,677 $ 2,069,918 Expenses 488,039 488,348 1,543,602 1,517,886 Net income $ 227,010 $ 185,307 $ 582,075 $ 552,032 In August 2017, the Company finalized an agreement to invest in an affiliated limited liability company called Ware Seguin 1518, LLC. The Company accounts for its 50% interest in Ware Seguin 1518, LLC under the equity method of accounting. Ware Seguin 1518, LLC owns property in Schertz, TX that it plans to develop for approximately 285 single family residential lots and approximately 15 acres of commercial or other uses. The operating and financial policies of Ware Seguin 1518, LLC are not controlled by the Company. The Company’s initial investment was $326,498 and the Company committed to invest an additional amount up to $500,000, of which an additional $53,149 was made as of January 31, 2018. Additional future investments may be required if agreed by the Members. The Company is also a guarantor of 50% of a $1,000,000 bank loan obtained by Ware Sequin 1518, LLC that was used to purchase the property. There has been no income statement activity as of January 31, 2018.

3. Income Taxes

3. Income Taxes	9 Months Ended
	Jan. 31, 2018
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. On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the Tax Act) was signed into law. The Tax Act makes significant changes to the Internal Revenue Code, including but not limited to, decreasing the statutory corporate tax rate from 35% to 21% effective January 1, 2018 and repealing AMT tax treatment. The Company calculated its best estimate of the impact of the Tax Act in its income tax provision and re-measured its deferred tax assets and liabilities at the enacted corporate tax rate of 21% in accordance with its understanding of the Tax Act and available guidance. The primary impact of this re-measurement was a reduction in deferred tax assets and liabilities in connection with the reduction of the U.S. corporate income tax rate and resulted in the Company recording approximately $200,000 of additional income tax expense during the three and nine month periods ended January 31, 2018. On October 26, 2017, the Company was informed that its fiscal year 2016 Federal tax return was selected for examination. This examination is currently in process.

4. Litigation

4. Litigation	9 Months Ended
	Jan. 31, 2018
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.

5. Refinancings

5. Refinancings	9 Months Ended
	Jan. 31, 2018
Debt Disclosure [Abstract]
Refinancings	New Orleans, LA – Refinance

6. Purchases of Real Estate

6. Purchases of Real Estate	9 Months Ended
	Jan. 31, 2018
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). 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). Houma, LA – Land Purchase Loan Amount: $5,065,000 Maturity Date: January 5, 2019 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). Pearland, TX – Land Purchase: Loan Amount: $500,000 Maturity Date: January 5, 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). Spring, TX – Land Purchase

7. Subsequent Events

7. Subsequent Events	9 Months Ended
	Jan. 31, 2018
Subsequent Events [Abstract]
Subsequent Events	Little Ferry, NJ – Land Purchase Loan Amount: $8,800,000 Maturity Date: February 1, 2029 Interest Rate: One month LIBOR, as defined, plus 2.50% through February 1, 2019 (the “Construction Phase”); thereafter, one month LIBOR plus 1.90% (the “Permanent Phase”). Payments: Interest only payable monthly during the Construction Phase. Thereafter, principal and interest payable monthly using a 30-year amortization. Guarantor: The Company (Corporate). Prepayment: Prior to February 1, 2019, 0.50% of the principal balance prepaid; from February 1, 2019 – January 31, 2021, 1.00% of the principal balance prepaid. Wethersfield, CT – Sale of Condominium: The Company has evaluated for subsequent events through March 29, 2018, the date the financial statements were issued.

1. Business and Significant A15

1. Business and Significant Accounting Policies (Policies)	9 Months Ended
	Jan. 31, 2018
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 January 31, 2018 or January 31, 2017.
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 Nine Months Ended January 31 January 31 2018 2017 2018 2017 Revenues: Real Estate Operations $ 11,467,236 $ 25,115,037 $ 52,389,651 $ 61,809,016 Fee for Service 735,375 935,750 2,650,750 3,500,500 Total $ 12,202,611 $ 26,050,787 $ 55,040,401 $ 65,309,516 Operating Costs & Expenses: Real Estate Operations $ 6,522,259 $ 18,534,933 $ 36,758,328 $ 42,844,271 Fee for Service 910,469 1,337,627 2,890,595 3,827,629 Administrative Expenses 3,146,547 2,460,473 9,951,570 6,907,319 Total $ 10,579,275 $ 22,333,033 $ 49,600,493 $ 53,579,219 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 $273,670 on January 31, 2018 and $129,651 on April 30, 2017 and receivables of $2,340,854 on January 31, 2018 and $4,262,302 on April 30, 2017.

1. Business and Significant A16

1. Business and Significant Accounting Policies (Tables)	9 Months Ended
	Jan. 31, 2018
Accounting Policies [Abstract]
Schedule of Segment Reporting Information, by Segment	Three Months Ended Nine Months Ended January 31 January 31 2018 2017 2018 2017 Revenues: Real Estate Operations $ 11,467,236 $ 25,115,037 $ 52,389,651 $ 61,809,016 Fee for Service 735,375 935,750 2,650,750 3,500,500 Total $ 12,202,611 $ 26,050,787 $ 55,040,401 $ 65,309,516 Operating Costs & Expenses: Real Estate Operations $ 6,522,259 $ 18,534,933 $ 36,758,328 $ 42,844,271 Fee for Service 910,469 1,337,627 2,890,595 3,827,629 Administrative Expenses 3,146,547 2,460,473 9,951,570 6,907,319 Total $ 10,579,275 $ 22,333,033 $ 49,600,493 $ 53,579,219

2. Consolidated Variable Inte17

2. Consolidated Variable Interest Entities and Investments in Affiliated Partnerships (Tables)	9 Months Ended
	Jan. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Summary of assets and liabilities of Rockland and Clarendon	January 31, 2018 April 30, 2017 Real estate and equipment, net $ 66,622,012 $ 66,732,664 Other assets 11,912,971 13,417,929 Total assets 78,534,983 80,150,593 Intercompany profit elimination (2,632,463 ) (2,719,143 ) $ 75,902,520 $ 77,431,450 Mortgages and other notes payable $ 64,027,894 $ 64,728,200 Other liabilities 4,415,581 4,179,842 Total liabilities $ 68,443,475 $ 68,908,042
Schedule of the operating results of Dover Parkade, LLC	Three Months Ended Nine Months Ended January 31, 2018 January 31, 2017 January 31, 2018 January 31, 2017 Dover Parkade, LLC: Revenue $ 715,049 $ 673,655 $ 2,125,677 $ 2,069,918 Expenses 488,039 488,348 1,543,602 1,517,886 Net income $ 227,010 $ 185,307 $ 582,075 $ 552,032

6. Purchases of Real Estate (Ta

6. Purchases of Real Estate (Tables)	9 Months Ended
	Jan. 31, 2018
Real Estate [Abstract]
Real estate purchase details	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). 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). Houma, LA – Land Purchase Loan Amount: $5,065,000 Maturity Date: January 5, 2019 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). Pearland, TX – Land Purchase: Loan Amount: $500,000 Maturity Date: January 5, 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).

1. Business and Significant A19

1. Business and Significant Accounting Policies (Details-Segment) - USD ($)	3 Months Ended		9 Months Ended
	Jan. 31, 2018	Jan. 31, 2017	Jan. 31, 2018	Jan. 31, 2017
Revenues:
TOTAL	$ 12,202,611	$ 26,050,787	$ 55,040,401	$ 65,309,516
Operating Costs & Expenses:
TOTAL	10,579,275	22,333,033	49,600,493	53,579,219
Real Estate Operations [Member]
Revenues:
TOTAL	11,467,236	25,115,037	52,389,651	61,809,016
Operating Costs & Expenses:
TOTAL	6,522,259	18,534,933	36,758,328	42,844,271
Fee for Service [Member]
Revenues:
TOTAL	735,375	935,750	2,650,750	3,500,500
Operating Costs & Expenses:
TOTAL	910,469	1,337,627	2,890,595	3,827,629
Administrative Expense [Member]
Operating Costs & Expenses:
TOTAL	$ 3,146,547	$ 2,460,473	$ 9,951,570	$ 6,907,319

1. Business and Significant A20

1. Business and Significant Accounting Policies (Details Narrative) - USD ($)	9 Months Ended
	Jan. 31, 2018	Jan. 31, 2017	Apr. 30, 2017
Accounting Policies [Line Items]
Common stock equivalents	0	0
Restricted cash	$ 652,599		$ 526,012
Receivables	3,278,121		3,505,541
Fee for Service [Member]
Accounting Policies [Line Items]
Restricted cash	273,670		129,651
Receivables	$ 2,340,854		$ 4,262,302

2. Consolidated Variable Inte21

2. Consolidated Variable Interest Entities and Investments in Affiliated Partnerships (Details-Assets and Liabilities) - USD ($)	Jan. 31, 2018	Apr. 30, 2017
Segment Reporting, Asset Reconciling Item [Line Items]
Real estate and equipment, net	$ 199,606,690	$ 193,105,993
Total assets	249,162,196	244,493,498
Mortgages and other notes payable	235,309,083	227,730,545
Other liabilities	1,037,871	1,328,909
Total liabilities	252,373,355	245,886,072
Rockland and Clarendon [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Real estate and equipment, net	66,622,012	66,732,664
Other assets	11,912,971	13,417,929
Total assets	78,534,983	80,150,593
Intercompany profit elimination	(2,632,463)	(2,719,143)
Total assets	75,902,520	77,431,450
Mortgages and other notes payable	64,027,894	64,728,200
Other liabilities	4,415,581	4,179,842
Total liabilities	$ 68,443,475	$ 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		9 Months Ended
	Jan. 31, 2018	Jan. 31, 2017	Jan. 31, 2018	Jan. 31, 2017
Revenue	$ 715,049	$ 673,655	$ 2,125,677	$ 2,069,918
Expenses	488,039	488,348	1,543,602	1,517,886
Net Income	$ 227,010	$ 185,307	$ 582,075	$ 552,032

2. Consolidated Variable Inte23

2. Consolidated Variable Interest Entities and Investments in Affiliated Partnerships (Details Narrative) - USD ($)	9 Months Ended
	Jan. 31, 2018	Jan. 31, 2017
Schedule of Equity Method Investments [Line Items]
Investment in affiliate	$ 379,647	$ 0
Dover Parkade, LLC [Member]
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Ownership Percentage	50.00%
Ware Seguin, LLC [Member]
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Ownership Percentage	50.00%
Investment in affiliate	$ 379,647

5. Refinancings (Details Narrat

5. Refinancings (Details Narrative) - New Orleans [Member]	9 Months Ended
	Jan. 31, 2018USD ($)
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)	9 Months Ended
	Jan. 31, 2018USD ($)
Houston, Texas [Member]
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).
Montgomery, TX [Member]
Loan amount	$ 4,150,000
Debt maturity date	Feb. 16, 2019
Debt interest rate	3.50% 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).
Huama, LA [Member]
Loan amount	$ 5,065,000
Debt maturity date	Jan. 1, 2019
Debt interest rate	2.50% plus One Month ICE LIBOR rate, as defined, up to maturity date and 12.0% thereafer.
Debt payment terms	Interest only payable monthly with principal due at maturity.
Debt guarantors	The Company (Corporate).
Pearland, TX [Member]
Loan amount	$ 500,000
Debt maturity date	Jan. 5, 2019
Debt interest rate	3.50% 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 ($)	May 12, 2017	Jan. 31, 2018	Jan. 31, 2017	Aug. 16, 2017	Jan. 11, 2018	Jan. 05, 2018	Jan. 31, 2018	Jan. 30, 2018	Jan. 31, 2017
Proceeds from construction loan							$ 17,385,201		$ 10,086,324
Proceeds from line of credit							5,360,000		1,625,000
Cost of sale of property sold		$ 653,812	$ 13,589,022				$ 19,941,842		$ 27,692,903
Houston, Texas [Member]
Land cost	$ 8,583,235
Proceeds from construction loan	5,158,210
Proceeds from line of credit	2,400,000
Working capital used	$ 1,025,025
Montgomery, TX [Member]
Land cost				$ 6,672,754
Proceeds from construction loan				4,150,000
Proceeds from line of credit				2,360,000
Working capital used				$ 162,754
Huama, LA [Member]
Land cost						$ 2,514,644
Proceeds from construction loan						1,417,217
Proceeds from line of credit						1,000,000
Working capital used						$ 97,427
Pearland, TX [Member]
Land cost					$ 1,038,306
Proceeds from construction loan					500,000
Proceeds from line of credit					400,000
Working capital used					$ 138,306
Spring, TX [Member]
Land cost								$ 1,161,240
Proceeds from sale of property								1,404,504
Cost of sale of property sold								$ 459,611