Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Jun. 30, 2014 | Mar. 24, 2015 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | PDNLB | ||
Entity Registrant Name | PRESIDENTIAL REALTY CORP/DE/ | ||
Entity Central Index Key | 731245 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $2,897,147 | ||
Common Class A [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 442,533 | ||
Common Class B [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 3,846,147 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Assets | ||
Real estate (Note 2) | $1,120,812 | $1,116,815 |
Less: accumulated depreciation | 564,715 | 514,699 |
Net real estate | 556,097 | 602,116 |
Net mortgage portfolio | 405 | 2,024 |
Prepaid expenses | 149,268 | 184,500 |
Other receivables (net of valuation allowance of $9,835 in 2014 and $5,485 in 2013) | 29,351 | 18,394 |
Cash | 442,613 | 477,077 |
Assets related to discontinued operations | 0 | 45,793 |
Other assets | 16,184 | 94,420 |
Total Assets | 1,193,918 | 1,424,324 |
Liabilities: | ||
Liabilities related to discontinued operations | 0 | 48,368 |
Mortgage payable | 440,654 | 465,309 |
Line of Credit | 500,000 | 500,000 |
Accrued liabilities | 355,349 | 588,467 |
Accounts payable | 4,686 | 0 |
Other liabilities | 599,619 | 652,502 |
Total Liabilities | 1,900,308 | 2,254,646 |
Presidential Stockholders' Deficit: | ||
Additional paid-in capital | 2,922,982 | 2,374,988 |
Accumulated deficit | -3,629,414 | -2,688,364 |
Total Presidential Stockholders' Deficit | -706,390 | -313,340 |
Non-controlling interest | 0 | -516,982 |
Total Deficit | -706,390 | -830,322 |
Total Liabilities and Stockholders' Deficit | 1,193,918 | 1,424,324 |
Common Class A [Member] | ||
Presidential Stockholders' Deficit: | ||
Common stock: par value $.00001 per share | 4 | 4 |
Common Class B [Member] | ||
Presidential Stockholders' Deficit: | ||
Common stock: par value $.00001 per share | $38 | $32 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS [Parenthetical] (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Valuation allowance for other receivables (in dollars) | $9,835 | $5,485 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common Class A [Member] | ||
Common Stock, Shares Authorized | 700,000 | 700,000 |
Common stock, shares issued | 442,533 | 442,533 |
Common Class B [Member] | ||
Common Stock, Shares Authorized | 999,300,000 | 999,300,000 |
Common stock, shares issued | 3,846,147 | 3,231,147 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues: | ||
Rental | $870,206 | $842,262 |
Interest on mortgages - notes receivable | 1,293 | 4,616 |
Total | 871,499 | 846,878 |
Costs and Expenses: | ||
General and administrative | 973,306 | 1,392,437 |
Stock based compensation | 123,000 | 200 |
Rental property: | ||
Operating expenses | 541,931 | 549,385 |
Interest and fees on mortgage debt | 43,637 | 32,040 |
Real estate taxes | 36,081 | 35,413 |
Depreciation on real estate | 50,016 | 49,683 |
Amortization and mortgage costs | 5,678 | 5,678 |
Total | 1,773,649 | 2,064,836 |
Other (Loss): | ||
Loss on deconsolidation of subsidiaries | -516,982 | 0 |
Other income | 259,851 | 0 |
Investment income | 218,231 | 85,018 |
Loss from continuing operations | -941,050 | -1,132,940 |
Discontinued Operations (Note 4): | ||
Loss from discontinued operations | 0 | -1,101,907 |
Net gain from foreclosure of discontinued operations | 0 | 4,705,968 |
Net income (loss) from discontinued operations | 0 | 3,604,061 |
Net income (loss) | -941,050 | 2,471,121 |
Net (income) from non-controlling interest | 0 | -1,441,624 |
Net income (loss) attributable to Presidential | ($941,050) | $1,029,497 |
Earnings per Common Share attributable to Presidential basic: | ||
Loss from continuing operations | ($0.22) | ($0.31) |
Discontinued Operations: | ||
Loss from discontinued operations (in dollars per share) | $0 | ($0.18) |
Net gain from foreclosure of discontinued operations (in dollars per share) | $0 | $0.77 |
Total earnings per share from discontinued operations (in dollars per share) | $0 | $0.59 |
Net Income (loss) per Common Share - basic (in dollars per share) | ($0.22) | $0.28 |
Net Income (loss) per Common Share -diluted (in dollars per share) | ($0.22) | $0.28 |
Weighted Average Number of Shares Outstanding - | ||
basic (in shares) | 4,263,406 | 3,669,844 |
diluted (in shares) | 4,263,406 | 3,669,844 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS (DEFICIT) (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [member] | Treasury Stock [Member] | Noncontrolling Interest [Member] |
Balance at Dec. 31, 2012 | ($3,301,643) | $36 | $5,254,142 | ($3,717,861) | ($2,879,354) | ($1,958,606) |
Net income(loss) | 2,471,121 | 0 | 0 | 1,029,497 | 0 | 1,441,624 |
Stock based compensation | 200 | 0 | 200 | 0 | 0 | 0 |
Cancellation of treasury stock | -2,879,354 | 2,879,354 | ||||
Balance at Dec. 31, 2013 | -830,322 | 36 | 2,374,988 | -2,688,364 | 0 | -516,982 |
Net income(loss) | -941,050 | 0 | 0 | -941,050 | 0 | 0 |
Stock based compensation | 123,000 | 6 | 122,994 | 0 | 0 | 0 |
Issuance of warrants | 425,000 | 0 | 425,000 | 0 | 0 | 0 |
Deconsolidation of subsidiaries | 516,982 | 516,982 | ||||
Balance at Dec. 31, 2014 | ($706,390) | $42 | $2,922,982 | ($3,629,414) | $0 | $0 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Net income (loss) | ($941,050) | $2,471,121 |
Adjustments to reconcile net income (loss) to net cash flow from operating activities: | ||
Depreciation and amortization | 54,274 | 49,683 |
Amortization of discounts on notes and fees | -1,285 | -3,540 |
Stock based compensation | 123,000 | 200 |
Net gain from discontinued operations | 0 | -4,705,968 |
Deconsolidation of subsidiaries | 516,982 | 0 |
Decrease (Increase) in: | ||
Other receivables | -10,957 | 13,431 |
Discontinued operations assets | 45,793 | 3,110,131 |
Prepaid expenses | 30,974 | 68,830 |
Other assets | 78,236 | -82,432 |
Increase (decreases) in: | ||
Accounts payable and accrued liabilities | 196,568 | 243,081 |
Discontinued operations liabilities | -48,368 | -2,046,271 |
Other liabilities | -52,883 | 18,687 |
Total adjustments | 932,334 | -3,334,168 |
Net cash flow from operating activities | -8,716 | -863,047 |
Cash Flows from Investing Activities: | ||
Payments received on notes receivable | 2,904 | 16,170 |
Payments disbursed for capital improvements | -3,997 | -5,281 |
Net cash flow from investing activities | -1,093 | 10,889 |
Cash Flows from Financing Activities: | ||
Proceeds of line of credit | 0 | 500,000 |
Proceeds of mortgage financing | 0 | 0 |
Principal payments on mortgage debt | -24,655 | -23,439 |
Net cash flow from financing activities | -24,655 | 476,561 |
Net decrease in Cash | -34,464 | -375,597 |
Cash, Beginning of Year | 477,077 | 852,674 |
Cash, End of Year | 442,613 | 477,077 |
Supplemental cash flow information: | ||
Interest paid in cash | 43,637 | 32,039 |
Schedule of non-cash investing and financing activities | ||
Issuance of a stock option in exchange for accrued salaries | $425,000 | $0 |
Organization_and_Summary_of_Si
Organization and Summary of Significant Accounting Policies | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Organization Consolidation And Presentation Of Financial Statements Disclosure And Significant Accounting Policies [Text Block] | 1 | Organization and Summary of Significant Accounting Policies |
Organization | ||
Presidential Realty Corporation (“Presidential” or the “Company”), is operated as a self-administrated, self-managed Real Estate Investment Trust (“REIT”). The Company is engaged principally in the ownership of income producing real estate. Presidential operates in a single business segment, investments in real estate related assets. | ||
Basis of Presentation and Going Concern Considerations | ||
At December 31, 2014, the Company had a loss from continuing operations. This combined with a history of operating losses and working capital deficiency, has been detrimental to our operations and could potentially affect our ability to meet our obligations and continue as a going concern. Our ability to continue as a going concern is dependent upon the successful execution of our business plan to achieve profitability, and to increase working capital, raising debt and/or equity. The accompanying financial statements do not include any adjustments that may result from this uncertainty. | ||
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and the requirements of the Securities and Exchange Commission (“SEC”). The financial statements include all normal and recurring adjustments that are necessary for a fair presentation of the Company’s financial position and operating results. | ||
Real Estate | ||
Real estate is stated at cost. Generally, depreciation is provided on the straight-line method over the assets estimated useful lives, which range from twenty to thirty-nine years for buildings and improvements and from three to ten years for furniture and equipment. Maintenance and repairs are charged to operations as incurred and renewals and replacements are capitalized. The Company reviews each of its property investments for possible impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Impairment of properties is determined to exist when estimated amounts recoverable through future operations on an undiscounted basis are below the properties carrying value. If a property is determined to be impaired, it is written down to its estimated fair value. | ||
Mortgage Portfolio | ||
Net mortgage portfolio represents the outstanding principal amounts of notes receivable reduced by discounts. The primary forms of collateral on all notes receivable are real estate and ownership interests in entities that own real property, and may include borrower personal guarantees. The Company periodically evaluates the collectability of both accrued interest on and principal of its notes receivable to determine whether they are impaired. A mortgage loan is considered to be impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the existing contractual terms of the loan. The Company also considers loan modifications as possible indicators of impairment. When a mortgage loan is considered to be impaired, the Company establishes a valuation allowance equal to the difference between a) the carrying value of the loan, and b) the present value of the expected cash flows from the loan at its effective interest rate, or at the estimated fair value of the real estate collateralizing the loan. Income on impaired loans, including interest, and the recognition of deferred gains and unamortized discounts, is recognized only as cash is received. | ||
Sale of Real Estate | ||
Presidential follows the guidance of the Property, Plant and Equipment Topic of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) as it pertains to sales of real estate. Accordingly, the gains on certain transactions were deferred and were recognized on the installment method until such transactions complied with the criteria for full profit recognition. At December 31, 2014 and 2013, the Company had no deferred gains. | ||
Discounts on Notes Receivable | ||
Presidential assigned discounted values to long-term notes received from the sales of properties to reflect the difference between the stated interest rates on the notes and market interest rates at the time the notes were made. Such discounts are being amortized using the interest method. | ||
Principles of Consolidation | ||
The consolidated financial statements include the accounts of Presidential Realty Corporation and its wholly owned subsidiaries. Additionally, the consolidated financial statements include 100% of the account balances of PDL, Inc. and Associates Limited Co-Partnership (the “Hato Rey Partnership”) through January 1, 2014. PDL, Inc. (a wholly owned subsidiary of Presidential and the general partner of the Hato Rey Partnership) and Presidential owned an aggregate 60% general and limited partnership interest in the Hato Rey Partnership. These partnerships were reported as discontinued operations (see Note 4). All significant intercompany balances and transactions have been eliminated. | ||
Rental Revenue Recognition | ||
The Company acts as lessor under operating leases. Rental revenue is recorded on the straight-line basis from the later of the date of the commencement of the lease or the date of acquisition of the property subject to existing leases, which averages minimum rents over the terms of the leases. Certain leases require the tenants to reimburse a pro rata share of real estate taxes, utilities and maintenance costs. Recognition of rental revenue is generally discontinued when the rental is delinquent for ninety days or more, or earlier if management determines that collection is doubtful. | ||
Reclassifications | ||
Certain items in the December 31, 2013 consolidated financial statements and notes have been reclassified to conform to the December 31, 2014 presentation. | ||
Allowance for Doubtful Accounts | ||
The Company assesses the collectability of amounts due from tenants and other receivables, using indicators such as past-due accounts, the nature and age of the receivable, the payment history and the ability of the tenant or debtor to meet its payment obligations. Management’s estimate of allowances for doubtful accounts is subject to revision as these factors change. Rental revenue is recorded on the accrual method and rental revenue recognition is generally discontinued when the tenant in occupancy is delinquent for ninety days or more. Bad debt expense is charged for vacated tenant accounts and subsequent receipts collected for those receivables will reduce bad debt expense. As of December 31, 2014 and 2013, the allowance for doubtful accounts relating to tenant obligations was $9,835 and $5,485, respectively. | ||
Net Income (Loss) Per Share | ||
Basic net income (loss) per share data is computed by dividing net income (loss) by the weighted average number of shares of Class A and Class B common stock outstanding (excluding non-vested shares) during each year. Diluted net income per share is computed by dividing net income by the weighted average shares outstanding, including the dilutive effect, if any, of non-vested shares. For the years ended December 31, 2014 and 2013, the weighted average shares outstanding as used in the calculation of diluted loss per share do not include 740,000, of outstanding stock options and 1,700,000 of outstanding warrants, and 740,000 outstanding stock options, respectively as their inclusion would be antidilutive. | ||
Cash | ||
Cash includes cash on hand, cash in banks and cash in money market funds. | ||
Management Estimates | ||
The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated balance sheets and the reported amounts of income and expense for the reporting period. Actual results could differ from those estimates. | ||
Accounting for Stock Awards | ||
The Company follows the guidance of ASC Topic 718 in accounting for stock-based compensation. Shares of Class B common stock granted are fully vested upon the grant date. The Company recorded the market value of the grants that were earned and vested in 2014 and 2013 to expense in each year. | ||
Discontinued Operations | ||
The Company follows the guidance of the Presentation and Property, Plant, and Equipment Topics of the ASC, with respect to long-lived assets classified as held for sale. The ASC requires that the results of operations, including impairment, gains and losses related to the properties that have been sold or properties that are intended to be sold, be presented as discontinued operations in the statements of operations for all periods presented and the assets and liabilities of properties intended to be sold are to be separately classified on the balance sheet. Properties designated as held for sale are carried at the lower of cost or fair value less costs to sell and are not depreciated. | ||
Accounting for Uncertainty in Income Taxes | ||
The Company follows the guidance of the recognition of current and deferred income tax accounts, including accrued interest and penalties, in accordance with ASC 740-10-25. Under this guidance, if the Company’s tax positions in relation to certain transactions were examined and were not ultimately upheld, the Company would be required to pay an income tax assessment and related interest. Alternatively, the Company could elect to pay a deficiency dividend to its shareholders in order to continue to qualify as a REIT and the related interest assessment to the taxing authorities. | ||
Recent Accounting Pronouncements | ||
The Company has considered all new accounting pronouncements and has concluded that there are no new pronouncements that may have a material impact on results of operations, financial condition or cash flows based on current information. | ||
Real_Estate
Real Estate | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Real Estate [Abstract] | ||||||||
Real Estate Disclosure [Text Block] | 2 | Real Estate | ||||||
Real estate is comprised of the following: | ||||||||
2014 | 2013 | |||||||
Land | $ | 79,100 | $ | 79,100 | ||||
Buildings | 989,340 | 987,689 | ||||||
Furniture and equipment | 52,372 | 50,026 | ||||||
Total | $ | 1,120,812 | $ | 1,116,815 | ||||
Rental revenue from the Maple Tree property constituted all of the rental revenue for the Company in 2014 and 2013. | ||||||||
Investments_in_Partnership
Investments in Partnership | 12 Months Ended | |
Dec. 31, 2014 | ||
Equity Method Investments and Joint Ventures [Abstract] | ||
Equity Method Investments and Joint Ventures Disclosure [Text Block] | 3 | Investments in Partnership |
We received distributions from Broadway Partners Fund II in the amount of $214,979 and $77,642 during the years ended December 31, 2014 and 2013, respectively. This amount is included in investment income on the statement of operations. This investment was previously written off. The Company recognizes income received on the cash basis. The Broadway Partners Fund II was closed at the end of 2014 and we do not expect any future income. | ||
Discontinued_Operations
Discontinued Operations | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | 4 | Discontinued Operations | ||||||
During the quarter ended March 31, 2012, the Company designated PDL, Inc. & Associates, Limited co-partnership, Presidential Matmor Corp. and PDL, Inc. as discontinued operations. All amounts have been adjusted retrospectively for the change through the date of foreclosure. | ||||||||
The following table summarizes for the property discontinued: | ||||||||
Year Ended December 31, | ||||||||
2014 | 2013 | |||||||
Revenues: | ||||||||
Rental | $ | - | $ | 2,656,689 | ||||
Rental property expenses: | ||||||||
Operating | - | 1,850,580 | ||||||
Interest on mortgage debt | - | 1,673,956 | ||||||
Real estate taxes | - | 236,122 | ||||||
Total rental property expense | - | 3,760,658 | ||||||
Other income: | - | |||||||
Investment income | - | 2,062 | ||||||
Loss from discontinued operations | - | -1,101,907 | ||||||
Net gain from foreclosure of discontinued operations | - | 4,705,968 | ||||||
Net Income from discontinued operations | $ | - | $ | 3,604,061 | ||||
* | All revenues and the majority of expenses were incurred through September 23, 2013, date of foreclosure. Costs of $106,463 were incurred from September 24, 2013 through December 31, 2013 in connection with closing costs associated with the foreclosure. | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Assets related to discontinued operations: | ||||||||
Other assets | $ | - | $ | 45,793 | ||||
Total assets related to discontinued operations | $ | - | $ | 45,793 | ||||
Liabilities related to discontinued operations: | ||||||||
Other liabilities | $ | - | $ | 48,368 | ||||
Total liabilities related to discontinued operations | $ | - | $ | 48,368 | ||||
During the year ended December 31, 2014 the Company recorded a loss of $516,982 from the deconsolidation of subsidiaries related to the dissolution of the ownership entities of Hato Ray property. | ||||||||
Mortgage_Debt
Mortgage Debt | 12 Months Ended | |
Dec. 31, 2014 | ||
Debt Disclosure [Abstract] | ||
Debt Disclosure [Text Block] | 5 | Mortgage Debt |
On June 8, 2012, we closed on a mortgage and line of credit for a combined total of $1,000,000 with Country Bank for Savings on the Mapletree Industrial Center. The mortgage is for $500,000 at a 5% interest rate, for a term of 5 years. Thereafter the interest will adjust monthly equal to the bank’s Prime Rate, plus 1% with an interest rate floor of 5%, for a term of 15 years. We received $459,620 of net proceeds. The line of credit is for $500,000, with an interest rate of 1% over the bank’s Prime Rate (4.25% at December 31, 2014). The balance outstanding at December 31, 2014 and 2013 was $500,000. The line of credit is due on demand. Both the mortgage and the line of credit are secured by the Mapletree Industrial Center, in Palmer, Massachusetts. The outstanding balance of the mortgage at December 31, 2014 and 2013 was $440,654 and $465,309, respectively. | ||
Hato_Rey_Partnership
Hato Rey Partnership | 12 Months Ended | |
Dec. 31, 2014 | ||
Noncontrolling Interest [Abstract] | ||
Noncontrolling Interest Disclosure [Text Block] | 6 | Hato Rey Partnership |
PDL, Inc. (a wholly owned subsidiary of Presidential) was the general partner of the Hato Rey Partnership. Presidential and PDL, Inc. had an aggregate 60% general and limited partner interest in the Hato Rey Partnership through September 23, 2013. The Company exercised effective control over the partnership through its ability to manage the affairs of the partnership in the ordinary course of business. Accordingly, the Company consolidated the Hato Rey Partnership in the accompanying consolidated financial statements. From March 2012 through September 23, 2013 (date of foreclosure), the Company had reported the partnership as a discontinued operation. | ||
The Company advanced $2,670,000 to the partnership to be used for building improvements and for operations. The loan, which was advanced to the partnership, as needed, earned interest at the rate of 13% per annum, with interest and principal to be paid out of the positive cash flow from the property or upon a refinancing of the First Mortgage on the property. On November 12, 2013 we contributed the entire loan balance of $2,670,000 and accrued interest of $1,614,941 to the Hato Rey Partnership. | ||
Income_Taxes
Income Taxes | 12 Months Ended | |
Dec. 31, 2014 | ||
Income Tax Disclosure [Abstract] | ||
Income Tax Disclosure [Text Block] | 7 | Income Taxes |
Presidential has elected to qualify as a Real Estate Investment Trust under the Internal Revenue Code. A REIT which distributes at least 90% of its real estate investment trust taxable income to its shareholders each year by the end of the following year and which meets certain other conditions will not be taxed on that portion of its taxable income which is distributed to its shareholders. | ||
ASC 740 prescribes a more likely than not recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken. If the Company’s tax position in relation to a transaction was not likely to be upheld, the Company would be required to record the accrual for the tax and interest thereon. As of December 31, 2014, the tax years that remain open to examination by the federal, state and local taxing authorities are the 2011 – 2013 tax years and the Company was not required to accrue any liability for those tax years. | ||
The Company has accumulated a net operating loss carry forward of approximately $19,800,000 expiring from 2028 through 2032. | ||
For the year ended December 31, 2013, the Company had taxable income of approximately $2,600,000 ($.71 per share), which is comprised of ordinary income of approximately $1,900,000 ($.52 per share) and a capital gain of approximately $700,000 ($.19 per share). | ||
For the year ended December 31, 2014, the Company had a tax loss of approximately $200,000 ($.05 per share), which was all ordinary losses. | ||
As previously stated, in order to maintain REIT status, Presidential is required to distribute 90% of its REIT taxable income (exclusive of capital gains). As a result of the operating loss for 2014 there is no requirement to make a distribution in 2015. In addition, no provision for federal income taxes was required at December 31, 2014 and 2013. | ||
Commitments_Contingencies_and_
Commitments, Contingencies and Related Parties | 12 Months Ended | ||
Dec. 31, 2014 | |||
Commitments and Contingencies Disclosure [Abstract] | |||
Commitments and Contingencies Disclosure [Text Block] | 8 | Commitments, Contingencies and Related parties | |
A. | Commitments and Contingencies | ||
1) | Presidential is not a party to any material legal proceedings. The Company may from time to time be a party to routine litigation incidental to the ordinary course of its business. | ||
2) | In the opinion of management, the Company’s Mapletree property is adequately covered by insurance in accordance with normal insurance practices. | ||
3) | A judgment of foreclosure was granted against PDL, Inc. & Associates, Limited Co-Partnership against the Hato Rey property in Puerto Rico. On September 23, 2013, U.S. Bank National Association, as trustee, as successor-in-interest to Bank of America, National Association, as trustee for the Registered Holders of GS Mortgage Securities Corporation II, Commercial Mortgage Pass-Through Certificates, Series 1998-C1, acting by and through Berkadia Commercial Mortgage LLC in its capacity as special servicer pursuant to the pooling and servicing agreement dated October 11, 1998 took possession of the Hato Rey property pursuant to the foreclosure judgment. We have been advised that the foreclosure sale price was less than the amount of the judgment. We have reported the Hato Rey property since March 31, 2012 as a discontinued operation. | ||
On December 18, 2013, GS II SERIES 1998 C-1 HOME MORTGAGE PLAZA HATO REY LLC, (hereinafter “GS II”), a Delaware corporation, represented herein by U.S. Bank National Association, as Successor Trustee, successor-in-interest to Bank of America, N.A. (successor-by-merger to LaSalle National Bank Association, f/k/a LaSalle National Bank), as Trustee for the Registered Certificate-holders of GS Mortgage Securities Corporation II, Commercial Mortgage Pass-Through Certificates, Series 1998-C1, its Sole Member, represented in turn by Key Bank National Association, and Presidential Realty Corporation, entered into a Settlement and Release Agreement. Pursuant to the Settlement Agreement, GS II, the owner of the claims in the litigation and under the guarantees, PDL, Inc. and Presidential released each other and their respective officers, directors and affiliates from any claims each may have against the other, including any liability under the litigation and the guarantees. GS II also agreed to release the other guarantors from any claims GS II may have against those guarantors, including any liability under the litigation and the guarantees. GS II agreed to terminate the action against the guarantors, with prejudice, and in turn, Presidential Realty Corporation made a one-time payment of $200,000 to GS II. | |||
B. | Related Parties | ||
1) | Executive Employment Agreements | ||
a. | Nickolas W. Jekogian –On January 8, 2014, the Company and Mr. Nicholas W. Jekogian, Chairman and Chief Executive Officer of the Company, entered into an amendment to Mr. Jekogian’s employment agreement dated November 8, 2011. The amendment provides for (i) the extension of the employment term from May 3, 2013 to December 31, 2015, (ii) continuation of Mr. Jekogian’s base salary through the balance of the term at the rate of $225,000 per annum (subject to the continued deferral of the payment of the base salary until a Capital Event), (iii) removal of the $200,000 cap on the amount of any annual bonus that might be awarded Mr. Jekogian, (iv) the issuance to Mr. Jekogian of a “Warrant” to purchase 1,700,000 shares of the Company’s Class B Common Stock in exchange for the complete cancellation of $425,000 of the deferred compensation accrued under Mr. Jekogian’s employment agreement. | ||
b. | Alexander Ludwig –On January 8, 2014, the Company and Mr. Alexander Ludwig, a Director, President, Chief Operating Officer and Principal Financial Officer of the Company entered into an amendment to Mr. Ludwig’s employment agreement dated November 8, 2011. The amendment provides for (i) the extension of the employment term from May 3, 2013 to December 31, 2015, (ii) continuation of Mr. Ludwig’s base salary through the balance of the term at the rate of $225,000 per annum, (iii) removal of the $200,000 cap on the amount of any annual bonus that might be awarded Mr. Ludwig. | ||
2) | Deferred Compensation | ||
In March 2015 the Company and the three former officer’s agreed in principal that if the Company were to refinance the Palmer Mapletree property, then they would accept, in lieu of the deferred compensation owed to them in the amount of $563,750 a cash payment of $50,000 each for a total of $150,000 from the proceeds of the refinancing and the right to receive restricted stock upon a registered public offering of the Company’s Class B Common Stock. The amount of restricted stock to be issued to each former officer would be the number of shares valued at the public offering price equal to the difference between the cash paid to them and the amount owed to them. While the Company is seeking to refinance the Palmer Mapletree property, the Company cannot guarantee that it will be able to obtain such refinancing. | |||
During 2014 we paid the former officers of the Company $10,000 each or $30,000 in total to extend the due date of the payment from November 8, 2014 to November 8, 2016. The balance owed at December 31, 2014 and 2013 was $563,750 and $593,750, respectively and is included in other liabilities. | |||
C. | Property Management Agreement | ||
On November 8, 2011, the Company and Signature Community Management (“Signature”, An entity owned by our CEO) entered into a Property Management Agreement pursuant to which the Company retained Signature as the exclusive, managing and leasing agent for the Company’s Mapletree Industrial Center property in Palmer, Massachusetts (the “Mapletree Property”). Signature receives compensation of 5% of monthly rental income actually received from tenants at the Mapletree Property. The property Management Agreement renewed for a one year term on November 8, 2014 and will be automatically renewable for one year terms until it is terminated by either party upon written notice. The Company incurred management fees of approximately $38,000 and $27,000 for the years ended December 31, 2014 and 2013, respectively. | |||
D. | Asset Management Agreement | ||
On November 8, 2011, the Company entered into an Asset Management Agreement with Signature pursuant to which the Company engaged Signature to oversee the Mapletree property and our Hato Rey center in Hato Rey, Puerto Rico. Signature will receive an asset management fee of 1.5% of the monthly gross rental revenues collected for the properties. The Asset Management Agreement renewed for a one year term on November 8, 2014 and will be automatically renewable for one year terms until it is terminated by either party upon written notice. On September 8, 2013 the Asset Management fee associated with the Hato Rey Center was terminated due to the foreclosure and loss of the property. No additional fees are due for the Hato Rey Center. The Company incurred and owed asset management fees of approximately $11,000 and $51,000 for the years ended December 31, 2014 and 2013, respectively. | |||
E. | Sublease | ||
The Company subleases their executive office space under a month to month lease with Signature. Either party may terminate the sublease upon 30 days prior written notice. On July 1, 2013 the Company moved their executive offices and amended its lease agreement with Signature for a monthly rental payment of $1,100 or $13,200 per year. All other terms of the sublease remained the same. For the years ended December 31, 2014 and 2013 the Company incurred approximately $13,200 and $9,099, respectively, in rent expense | |||
Other_Income
Other Income | 12 Months Ended | ||
Dec. 31, 2014 | |||
Other Income and Expenses [Abstract] | |||
Other Income and Other Expense Disclosure [Text Block] | 9 | Other Income | |
During the nine months ended September 30, 2014, the Company sold environmental tax credits from the state of Massachusetts for approximately $260,000 less expenses of approximately $19,500, in connection with the environmental remediation at the Mapletree Industrial Center. | |||
Concentration_of_Credit_Risk
Concentration of Credit Risk | 12 Months Ended | |
Dec. 31, 2014 | ||
Risks and Uncertainties [Abstract] | ||
Concentration Risk Disclosure [Text Block] | 10 | Concentration of Credit Risk |
Financial instruments, which potentially subject the Company to concentrations of credit risk, consist principally of its mortgage portfolio and cash. | ||
The Company generally maintains its cash in money market funds with financial institutions. Although the Company may maintain balances at these institutions in excess of the FDIC insurance limit, the Company does not anticipate and has not experienced any losses. | ||
Common_Stock
Common Stock | 12 Months Ended | |
Dec. 31, 2014 | ||
Stockholders Equity Note [Abstract] | ||
Stockholders Equity Note Disclosure [Text Block] | 11 | Common Stock |
The Class A and Class B common stock of Presidential have identical rights except that the holders of Class A common stock are entitled to elect two-thirds of the Board of Directors and the holders of the Class B common stock are entitled to elect one-third of the Board of Directors. | ||
Other than as described in Note 13, no shares of common stock of Presidential are reserved. | ||
Warrants_and_Options
Warrants and Options | 12 Months Ended | ||
Dec. 31, 2014 | |||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Stock Options [Text Block] | 12 | Warrants and Options | |
The Company issued to Mr. Nicholas W. Jekogian our CEO a Warrant in January 2014 to purchase 1,700,000 shares of the Company’s Class B Common Stock a $.10 in exchange for the complete cancellation of $425,000 of deferred compensation accrued under Mr. Nicholas W. Jekogian’s employment agreement. | |||
On November 8, 2011, the Company issued 740,000 options at an exercise price of $1.25. A total of 148,000 shares vest six months after the grant date. The aggregate intrinsic value was $0.00. The remaining options vest upon the achievement of performance milestones. Options vesting on the achievement of performance milestones will not be recognized as compensation until such milestones are deemed probable of achievement. The Company has approximately $592,000 of unrecognized compensation expense as of December 31, 2014 and 2013, related to unvested share-based compensation awards. For the years ended December 31, 2014 and 2013 compensation expense was $0. Approximately $592,000 will vest upon the achievement of performance milestones. | |||
The weighted-average fair value per share of the options granted is $1.00 estimated on the date of grant using the Black-Scholes-Merton option pricing model; the expected volatility is based upon historical volatility of the Company’s stock. The expected term is based upon observation of actual time elapsed between date of grant and exercise of options for all employees. | |||
Stock_Compensation
Stock Compensation | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||
Disclosure Of Stock Compensation [Text Block] | 13 | Stock Compensation | |||||||||
On August 15, 2012 the stockholders approved the 2012 Incentive Plan which reserves 1,000,000 shares of Class B common stock for distribution to executive officers (including executive officers who are also directors), employees, directors, independent agents, consultants and attorneys in accordance with the 2012 Plan’s terms. The 2012 Plan provides for the grant of any or all of the following types of awards (collectively, “Awards”): (a) stock options and (b) restricted stock. Awards may be granted singly, in combination, or in tandem, as determined by the Compensation Committee. The maximum number of shares of Class B common stock with respect to which incentive stock options may be granted to any one individual in any calendar year shall not exceed $100,000 in fair market value as determined at the time of grant. If any outstanding Award is canceled, forfeited, delivered to us as payment for the exercise price or surrendered to us for tax withholding purposes, shares of Class B common stock allocable to such Award may again be available for Awards under the 2012 Incentive Plan. | |||||||||||
In 2005, shareholders approved the adoption of the Company’s 2005 Restricted Stock Plan (the “2005 Plan”). The 2005 Plan provides that a total of 115,000 shares of the Company’s Class B common stock may be issued to employees, directors and consultants of the Company, to provide incentive compensation. The 2005 Plan is administered by the Compensation Committees of the Company’s Board of Directors, which have the authority, among other things, to determine the terms and conditions of any award under the 2005 Plan (including the vesting schedule applicable to the award, if any). The Board of Directors may at any time amend, suspend or terminate the 2005 Plan. The 2005 Plan will terminate on June 15, 2015, unless terminated earlier by the Board of Directors. | |||||||||||
During January 2014, the Company issued 615,000 shares of Class B common stock, valued at $123,000 for director’s fees and other professional fees in lieu of cash payments, which is included in stock based compensation expense. | |||||||||||
In December 2013, the Company issued 4,000 shares of Class B common stock as part of the directors’ compensation which was valued at $200. | |||||||||||
The following is a summary of the Company’s activity in 2014 and 2013: | |||||||||||
Value | |||||||||||
Shares | at Date of | Vested | |||||||||
Date of Issuance | Issued | Grant | Shares | ||||||||
Balance, December 31, 2012 | 23,100 | - | 23,100 | ||||||||
Activity for 2013 | - | ||||||||||
Shares issued in 2013 | 4,000 | 0.05 | 4,000 | ||||||||
Balance, December 31, 2013 | 27,100 | 0.05 | 27,100 | ||||||||
Activity for 2014 | - | ||||||||||
Shares issued in 2014 | 615,000 | 0.2 | 615,000 | ||||||||
Balance, December 31, 2014 | 642,100 | 642,100 | |||||||||
Estimated_Fair_Value_of_Financ
Estimated Fair Value of Financial Instruments | 12 Months Ended | ||
Dec. 31, 2014 | |||
Fair Value Disclosures [Abstract] | |||
Fair Value Disclosures [Text Block] | 14 | Estimated Fair Value of Financial Instruments | |
Estimated fair values of the Company’s financial instruments as of December 31, 2014 and 2013 were determined using available market information and various valuation estimation methodologies. Considerable judgment was required to interpret the effects on fair value of such items as future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors. The estimates presented herein are not necessarily indicative of the amounts that the Company could realize in a current market exchange. Also, the use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair values. However, we believe reported amounts approximate fair value. | |||
Future_Minimum_Annual_Base_Ren
Future Minimum Annual Base Rents | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Future Minimum Annual Base Rents [Abstract] | |||||
Future Minimum Annual Base Rents [Text Block] | 15 | Future Minimum Annual Base Rents | |||
Future minimum annual base rental revenue for the next five years for commercial real estate owned at December 31, 2014, and subject to non-cancelable operating leases is as follows: | |||||
Year Ending December 31, | |||||
2015 | $ | 528,309 | |||
2016 | 233,502 | ||||
2017 | 91,157 | ||||
2018 | 68,447 | ||||
2019 | 68,447 | ||||
Thereafter | 422,089 | ||||
Total | $ | 1,411,951 | |||
Organization_and_Summary_of_Si1
Organization and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Organization and Description Of Business Accounting [Policy Text Block] | Organization |
Presidential Realty Corporation (“Presidential” or the “Company”), is operated as a self-administrated, self-managed Real Estate Investment Trust (“REIT”). The Company is engaged principally in the ownership of income producing real estate. Presidential operates in a single business segment, investments in real estate related assets. | |
Basis Of Presentation and Going Concern Considerations [Policy Text Block] | Basis of Presentation and Going Concern Considerations |
At December 31, 2014, the Company had a loss from continuing operations. This combined with a history of operating losses and working capital deficiency, has been detrimental to our operations and could potentially affect our ability to meet our obligations and continue as a going concern. Our ability to continue as a going concern is dependent upon the successful execution of our business plan to achieve profitability, and to increase working capital, raising debt and/or equity. The accompanying financial statements do not include any adjustments that may result from this uncertainty. | |
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and the requirements of the Securities and Exchange Commission (“SEC”). The financial statements include all normal and recurring adjustments that are necessary for a fair presentation of the Company’s financial position and operating results. | |
Real Estate, Policy [Policy Text Block] | Real Estate |
Real estate is stated at cost. Generally, depreciation is provided on the straight-line method over the assets estimated useful lives, which range from twenty to thirty-nine years for buildings and improvements and from three to ten years for furniture and equipment. Maintenance and repairs are charged to operations as incurred and renewals and replacements are capitalized. The Company reviews each of its property investments for possible impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Impairment of properties is determined to exist when estimated amounts recoverable through future operations on an undiscounted basis are below the properties carrying value. If a property is determined to be impaired, it is written down to its estimated fair value. | |
Mortgage Portfolio [Policy Text Block] | Mortgage Portfolio |
Net mortgage portfolio represents the outstanding principal amounts of notes receivable reduced by discounts. The primary forms of collateral on all notes receivable are real estate and ownership interests in entities that own real property, and may include borrower personal guarantees. The Company periodically evaluates the collectability of both accrued interest on and principal of its notes receivable to determine whether they are impaired. A mortgage loan is considered to be impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the existing contractual terms of the loan. The Company also considers loan modifications as possible indicators of impairment. When a mortgage loan is considered to be impaired, the Company establishes a valuation allowance equal to the difference between a) the carrying value of the loan, and b) the present value of the expected cash flows from the loan at its effective interest rate, or at the estimated fair value of the real estate collateralizing the loan. Income on impaired loans, including interest, and the recognition of deferred gains and unamortized discounts, is recognized only as cash is received. | |
Real Estate Held for Development and Sale, Policy [Policy Text Block] | Sale of Real Estate |
Presidential follows the guidance of the Property, Plant and Equipment Topic of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) as it pertains to sales of real estate. Accordingly, the gains on certain transactions were deferred and were recognized on the installment method until such transactions complied with the criteria for full profit recognition. At December 31, 2014 and 2013, the Company had no deferred gains. | |
Discounts On Notes Receivable [Policy Text Block] | Discounts on Notes Receivable |
Presidential assigned discounted values to long-term notes received from the sales of properties to reflect the difference between the stated interest rates on the notes and market interest rates at the time the notes were made. Such discounts are being amortized using the interest method. | |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation |
The consolidated financial statements include the accounts of Presidential Realty Corporation and its wholly owned subsidiaries. Additionally, the consolidated financial statements include 100% of the account balances of PDL, Inc. and Associates Limited Co-Partnership (the “Hato Rey Partnership”) through January 1, 2014. PDL, Inc. (a wholly owned subsidiary of Presidential and the general partner of the Hato Rey Partnership) and Presidential owned an aggregate 60% general and limited partnership interest in the Hato Rey Partnership. These partnerships were reported as discontinued operations (see Note 4). All significant intercompany balances and transactions have been eliminated. | |
Revenue Recognition Leases, Operating [Policy Text Block] | Rental Revenue Recognition |
The Company acts as lessor under operating leases. Rental revenue is recorded on the straight-line basis from the later of the date of the commencement of the lease or the date of acquisition of the property subject to existing leases, which averages minimum rents over the terms of the leases. Certain leases require the tenants to reimburse a pro rata share of real estate taxes, utilities and maintenance costs. Recognition of rental revenue is generally discontinued when the rental is delinquent for ninety days or more, or earlier if management determines that collection is doubtful. | |
Reclassification, Policy [Policy Text Block] | Reclassifications |
Certain items in the December 31, 2013 consolidated financial statements and notes have been reclassified to conform to the December 31, 2014 presentation. | |
Loans and Leases Receivable, Allowance for Loan Losses Policy [Policy Text Block] | Allowance for Doubtful Accounts |
The Company assesses the collectability of amounts due from tenants and other receivables, using indicators such as past-due accounts, the nature and age of the receivable, the payment history and the ability of the tenant or debtor to meet its payment obligations. Management’s estimate of allowances for doubtful accounts is subject to revision as these factors change. Rental revenue is recorded on the accrual method and rental revenue recognition is generally discontinued when the tenant in occupancy is delinquent for ninety days or more. Bad debt expense is charged for vacated tenant accounts and subsequent receipts collected for those receivables will reduce bad debt expense. As of December 31, 2014 and 2013, the allowance for doubtful accounts relating to tenant obligations was $9,835 and $5,485, respectively. | |
Earnings Per Share, Policy [Policy Text Block] | Net Income (Loss) Per Share |
Basic net income (loss) per share data is computed by dividing net income (loss) by the weighted average number of shares of Class A and Class B common stock outstanding (excluding non-vested shares) during each year. Diluted net income per share is computed by dividing net income by the weighted average shares outstanding, including the dilutive effect, if any, of non-vested shares. For the years ended December 31, 2014 and 2013, the weighted average shares outstanding as used in the calculation of diluted loss per share do not include 740,000, of outstanding stock options and 1,700,000 of outstanding warrants, and 740,000 outstanding stock options, respectively as their inclusion would be antidilutive. | |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash |
Cash includes cash on hand, cash in banks and cash in money market funds. | |
Use of Estimates, Policy [Policy Text Block] | Management Estimates |
The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated balance sheets and the reported amounts of income and expense for the reporting period. Actual results could differ from those estimates. | |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Accounting for Stock Awards |
The Company follows the guidance of ASC Topic 718 in accounting for stock-based compensation. Shares of Class B common stock granted are fully vested upon the grant date. The Company recorded the market value of the grants that were earned and vested in 2014 and 2013 to expense in each year. | |
Discontinued Operations, Policy [Policy Text Block] | Discontinued Operations |
The Company follows the guidance of the Presentation and Property, Plant, and Equipment Topics of the ASC, with respect to long-lived assets classified as held for sale. The ASC requires that the results of operations, including impairment, gains and losses related to the properties that have been sold or properties that are intended to be sold, be presented as discontinued operations in the statements of operations for all periods presented and the assets and liabilities of properties intended to be sold are to be separately classified on the balance sheet. Properties designated as held for sale are carried at the lower of cost or fair value less costs to sell and are not depreciated. | |
Income Tax Uncertainties, Policy [Policy Text Block] | Accounting for Uncertainty in Income Taxes |
The Company follows the guidance of the recognition of current and deferred income tax accounts, including accrued interest and penalties, in accordance with ASC 740-10-25. Under this guidance, if the Company’s tax positions in relation to certain transactions were examined and were not ultimately upheld, the Company would be required to pay an income tax assessment and related interest. Alternatively, the Company could elect to pay a deficiency dividend to its shareholders in order to continue to qualify as a REIT and the related interest assessment to the taxing authorities. | |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements |
The Company has considered all new accounting pronouncements and has concluded that there are no new pronouncements that may have a material impact on results of operations, financial condition or cash flows based on current information. | |
Real_Estate_Tables
Real Estate (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Real Estate [Abstract] | ||||||||
Schedule of Real Estate Properties [Table Text Block] | Real estate is comprised of the following: | |||||||
2014 | 2013 | |||||||
Land | $ | 79,100 | $ | 79,100 | ||||
Buildings | 989,340 | 987,689 | ||||||
Furniture and equipment | 52,372 | 50,026 | ||||||
Total | $ | 1,120,812 | $ | 1,116,815 | ||||
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block] | The following table summarizes for the property discontinued: | |||||||
Year Ended December 31, | ||||||||
2014 | 2013 | |||||||
Revenues: | ||||||||
Rental | $ | - | $ | 2,656,689 | ||||
Rental property expenses: | ||||||||
Operating | - | 1,850,580 | ||||||
Interest on mortgage debt | - | 1,673,956 | ||||||
Real estate taxes | - | 236,122 | ||||||
Total rental property expense | - | 3,760,658 | ||||||
Other income: | - | |||||||
Investment income | - | 2,062 | ||||||
Loss from discontinued operations | - | -1,101,907 | ||||||
Net gain from foreclosure of discontinued operations | - | 4,705,968 | ||||||
Net Income from discontinued operations | $ | - | $ | 3,604,061 | ||||
* | All revenues and the majority of expenses were incurred through September 23, 2013, date of foreclosure. Costs of $106,463 were incurred from September 24, 2013 through December 31, 2013 in connection with closing costs associated with the foreclosure. | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Assets related to discontinued operations: | ||||||||
Other assets | $ | - | $ | 45,793 | ||||
Total assets related to discontinued operations | $ | - | $ | 45,793 | ||||
Liabilities related to discontinued operations: | ||||||||
Other liabilities | $ | - | $ | 48,368 | ||||
Total liabilities related to discontinued operations | $ | - | $ | 48,368 | ||||
Stock_Compensation_Tables
Stock Compensation (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | The following is a summary of the Company’s activity in 2014 and 2013: | ||||||||||
Value | |||||||||||
Shares | at Date of | Vested | |||||||||
Date of Issuance | Issued | Grant | Shares | ||||||||
Balance, December 31, 2012 | 23,100 | - | 23,100 | ||||||||
Activity for 2013 | - | ||||||||||
Shares issued in 2013 | 4,000 | 0.05 | 4,000 | ||||||||
Balance, December 31, 2013 | 27,100 | 0.05 | 27,100 | ||||||||
Activity for 2014 | - | ||||||||||
Shares issued in 2014 | 615,000 | 0.2 | 615,000 | ||||||||
Balance, December 31, 2014 | 642,100 | 642,100 | |||||||||
Future_Minimum_Annual_Base_Ren1
Future Minimum Annual Base Rents (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Future Minimum Annual Base Rents [Abstract] | |||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Future minimum annual base rental revenue for the next five years for commercial real estate owned at December 31, 2014, and subject to non-cancelable operating leases is as follows: | ||||
Year Ending December 31, | |||||
2015 | $ | 528,309 | |||
2016 | 233,502 | ||||
2017 | 91,157 | ||||
2018 | 68,447 | ||||
2019 | 68,447 | ||||
Thereafter | 422,089 | ||||
Total | $ | 1,411,951 | |||
Organization_and_Summary_of_Si2
Organization and Summary of Significant Accounting Policies (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Accounting Policies [Line Items] | ||
Allowance For Doubtful Other Receivables, Current | 9,835 | 5,485 |
Warrant [Member] | ||
Accounting Policies [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,700,000 | |
Equity Option [Member] | ||
Accounting Policies [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 740,000 | 740,000 |
Hato Rey Partnership [Member] | ||
Accounting Policies [Line Items] | ||
Limited Liability Company (LLC) or Limited Partnership (LP), Members or Limited Partners, Ownership Interest | 60.00% |
Real_Estate_Details
Real Estate (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Real Estate [Line Items] | ||
Land | $79,100 | $79,100 |
Buildings | 989,340 | 987,689 |
Furniture and equipment | 52,372 | 50,026 |
Total | $1,120,812 | $1,116,815 |
Investments_in_Partnership_Det
Investments in Partnership (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Equity Method Investments [Line Items] | ||
Proceeds from Equity Method Investment, Dividends or Distributions | $214,979 | $77,642 |
Discontinued_Operations_Detail
Discontinued Operations (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues: | ||
Rental | $0 | $2,656,689 |
Rental property expenses: | ||
Operating | 0 | 1,850,580 |
Interest on mortgage debt | 0 | 1,673,956 |
Real estate taxes | 0 | 236,122 |
Total rental property expense | 0 | 3,760,658 |
Other income: | ||
Investment income | 0 | 2,062 |
Loss from discontinued operations | 0 | -1,101,907 |
Net gain from foreclosure of discontinued operations | 0 | 4,705,968 |
Net Income from discontinued operations | 0 | 3,604,061 |
Assets related to discontinued operations: | ||
Other assets | 0 | 45,793 |
Total assets related to discontinued operations | 0 | 45,793 |
Liabilities related to discontinued operations: | ||
Other liabilities | 0 | 48,368 |
Total liabilities related to discontinued operations | $0 | $48,368 |
Discontinued_Operations_Detail1
Discontinued Operations (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Discontinued Operations [Line Items] | |||
Foreclosed Real Estate Expense | $106,463 | ||
Loss on deconsolidation of subsidiaries | ($516,982) | $0 |
Mortgage_Debt_Details_Textual
Mortgage Debt (Details Textual) (USD $) | 0 Months Ended | 12 Months Ended | |
Jun. 08, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | |
Mortgage Debt [Line Items] | |||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | $500,000 | ||
Mortgage and Line Of Credit Total | 1,000,000 | ||
Mortgage Loans on Real Estate, Interest Rate | 5.00% | ||
Mortgage Debt Maturity Period | 5 years | ||
Mortgage Loan Interest Rate Adjustment Description | interest will adjust monthly equal to the bank’s Prime Rate, plus 1% with an interest rate floor of 5%, for a term of 15 years. | ||
Proceeds from Sale of Mortgage Loans Held-for-sale | 459,620 | ||
Line of Credit Facility, Amount Outstanding | 500,000 | 500,000 | 500,000 |
Line of Credit Facility, Interest Rate Description | with an interest rate of 1% over the bank’s Prime Rate 3.25% | ||
Mortgage payable | $440,654 | $465,309 | |
Line of Credit Facility, Interest Rate During Period | 4.25% |
Hato_Rey_Partnership_Details_T
Hato Rey Partnership (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Nov. 12, 2013 | |
Noncontrolling Interest [Line Items] | ||
Loan Provided To Partnership Firm Interest Percentage | 13.00% | |
Loan Provided To Partnership Firm | 2,670,000 | $2,670,000 |
Accrued Interest On Loan Provided To Partnership Firm Interest Percentage | $1,614,941 | |
Hato Rey Partnership [Member] | ||
Noncontrolling Interest [Line Items] | ||
Limited Liability Company (LLC) or Limited Partnership (LP), Members or Limited Partners, Ownership Interest | 60.00% |
Income_Taxes_Details_Textual
Income Taxes (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax [Line Items] | ||
Real Estate Investment Trust Taxable Income (Loss) | ($200,000) | $2,600,000 |
Real Estate Investment Trust Taxable Income Loss Per Share | $0.05 | $0.71 |
Net Income (Loss) from Real Estate Investment Partnership, Total | 1,900,000 | |
Real Estate Investment Trust Ordinary Income Loss Per Share | $0.52 | |
Capital Gain | 700,000 | |
Capital Gain Per Share | $0.19 | |
Operating Loss Expiration Term | expiring from 2028 through 2032. | |
Operating Loss Carryforwards | $19,800,000 |
Commitments_Contingencies_and_1
Commitments, Contingencies and Related Parties (Details Textual) (USD $) | 0 Months Ended | 1 Months Ended | 0 Months Ended | 6 Months Ended | 12 Months Ended | |
Jan. 08, 2014 | Dec. 18, 2013 | Nov. 08, 2011 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments, Contingencies and Related parties [Line Items] | ||||||
Operating Leases Rent Expense Sublease Rentals Per Monthly | $1,100 | |||||
Percentage Of Monthly Rental Income From Tenant | 5.00% | |||||
Asset Management Fees | 11,000 | 51,000 | ||||
Operating Leases, Rent Expense | 13,200 | 9,099 | ||||
Owned Property Management Costs | 38,000 | 27,000 | ||||
Payments for Legal Settlements | 200,000 | |||||
Asset Management Fee Percentage | 1.50% | |||||
Warrants Issued For Cancellation Of Deferred Compensation, Shares | 1,700,000 | |||||
Warrants Issued For Cancellation Of Deferred Compensation, Value | 425,000 | |||||
Potential Cash Payments On Possible Refinancing | 150,000 | |||||
Related Party Transaction, Amounts of Transaction | 30,000 | |||||
Due to Related Parties | 593,750 | 563,750 | 593,750 | |||
Potential Cash Payment to Each Former Officers | 50,000 | |||||
Related Party Transaction, Amount of Transaction with Each Former Officer | 10,000 | |||||
Common Class B [Member] | ||||||
Commitments, Contingencies and Related parties [Line Items] | ||||||
Warrants Issued For Cancellation Of Deferred Compensation, Shares | 1,700,000 | |||||
Warrants Issued For Cancellation Of Deferred Compensation, Value | 425,000 | |||||
Chief Operating Officer [Member] | ||||||
Commitments, Contingencies and Related parties [Line Items] | ||||||
Base Salary | 225,000 | |||||
Removal of Cap | 200,000 | |||||
Director, Chairman Of Board Of Directors and Chief Executive Officer [Member] | ||||||
Commitments, Contingencies and Related parties [Line Items] | ||||||
Base Salary | 225,000 | |||||
Removal of Cap | $200,000 |
Other_Income_Details_Textual
Other Income (Details Textual) (USD $) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other Nonoperating Income | $260,000 | $259,851 | $0 |
Other Nonoperating Expense | $19,500 |
Warrants_and_Options_Details_T
Warrants and Options (Details Textual) (USD $) | 0 Months Ended | 12 Months Ended | ||
Jan. 08, 2014 | Nov. 08, 2011 | Dec. 31, 2014 | Dec. 31, 2013 | |
Warrants and Stock Options [Line Items] | ||||
Share Based Compensation Arrangements By Share Based Payment Award Options Exercises In Period Weighted Average Exercise Price | $1.25 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 148,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $0 | |||
Stock Based Compensation | 0 | 0 | ||
Compensation Expense Recognition Upon Achievement Of Performance Milestones | 592,000 | 592,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $1 | |||
Warrants Issued For Cancellation Of Deferred Compensation, Shares | 1,700,000 | |||
Warrants Issued For Cancellation Of Deferred Compensation, Value | 425,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 740,000 | |||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $0.10 | |||
Common Class B [Member] | ||||
Warrants and Stock Options [Line Items] | ||||
Warrants Issued For Cancellation Of Deferred Compensation, Shares | 1,700,000 | |||
Warrants Issued For Cancellation Of Deferred Compensation, Value | $425,000 |
Stock_Compensation_Details
Stock Compensation (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Value at Date of Grant | $0.20 | $0.05 |
Balance, Intrinsic value | $0.05 | $0 |
Balance, Intrinsic value | $0.05 | |
Issued Restricted Shares Activity [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Balance | 27,100 | 23,100 |
Share issued | 615,000 | 4,000 |
Balance | 642,100 | 27,100 |
Vested Restricted Shares Activity [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Balance | 27,100 | 23,100 |
Share issued | 615,000 | 4,000 |
Balance | 642,100 | 27,100 |
Stock_Compensation_Details_Tex
Stock Compensation (Details Textual) (USD $) | 1 Months Ended | 12 Months Ended | 0 Months Ended | |
Jan. 31, 2014 | Dec. 31, 2013 | Aug. 15, 2012 | Dec. 31, 2005 | |
Restricted Stock Plan 2005 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 115,000 | |||
Common Class B [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common Stock, Capital Shares Reserved for Future Issuance | 1,000,000 | |||
Stock Issued During Period, Shares, Issued for Services | 615,000 | 4,000 | ||
Stock Issued During Period, Value, Issued for Services | $123,000 | $200 | ||
Common Class B [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock Granted, Value, Share-based Compensation, Gross | $100,000 |
Future_Minimum_Annual_Base_Ren2
Future Minimum Annual Base Rents (Details) (USD $) | Dec. 31, 2014 |
Operating Leased Assets [Line Items] | |
2015 | $528,309 |
2016 | 233,502 |
2017 | 91,157 |
2018 | 68,447 |
2019 | 68,447 |
Thereafter | 422,089 |
Total | $1,411,951 |