Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | Apr. 07, 2014 | |
Document And Entity Information | ' | ' |
Entity Registrant Name | 'PARAGON REAL ESTATE EQUITY & INVESTMENT TRUST | ' |
Entity Central Index Key | '0000928953 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Mar-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 405,096 |
Document Fiscal Period Focus | 'Q1 | ' |
Document Fiscal Year Focus | '2014 | ' |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Assets | ' | ' |
Cash | $11,331 | $9,643 |
Marketable securities | 57,375 | 77,374 |
Other assets | 6,496 | 8,826 |
Total Assets | 75,202 | 95,843 |
Liabilities: | ' | ' |
Accounts payable and accrued expenses | 2,333 | 833 |
Total liabilities | 2,333 | 833 |
Shareholders' equity: | ' | ' |
Preferred shares value | ' | ' |
Common Shares - $0.01 par value, 100,000,000 authorized: 443,226 shares issued and 405,096 outstanding. | 4,051 | 4,051 |
Additional paid-in capital | 28,146,971 | 28,146,971 |
Accumulated deficit | -27,282,445 | -27,260,304 |
Treasury stock, at cost, 38,130 shares | -800,735 | -800,735 |
Total shareholders' equity | 72,869 | 95,010 |
Total Liabilities and Shareholders' Equity | 75,202 | 95,843 |
Redeemable Convertible Series A Preferred Stock [Member] | ' | ' |
Shareholders' equity: | ' | ' |
Preferred shares value | 2,583 | 2,583 |
Redeemable Convertible Series C Preferred Stock [Member] | ' | ' |
Shareholders' equity: | ' | ' |
Preferred shares value | $2,444 | $2,444 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 443,226 | 443,226 |
Common stock, shares outstanding | 405,096 | 405,096 |
Treasury stock, at cost, shares | 38,130 | 38,130 |
Redeemable Convertible Series A Preferred Stock [Member] | ' | ' |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 258,236 | 258,236 |
Preferred stock, shares outstanding | 258,236 | 258,236 |
Preferred stock, liquidation preference | $10 | $10 |
Redeemable Convertible Series C Preferred Stock [Member] | ' | ' |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 300,000 | 300,000 |
Preferred stock, shares issued | 244,444 | 244,444 |
Preferred stock, shares outstanding | 244,444 | 244,444 |
Preferred stock, liquidation preference | $10 | $10 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Revenues | ' | ' |
Interest/dividend income | $2 | $446 |
Total revenues | 2 | 446 |
Expenses | ' | ' |
General and administrative | 22,142 | 21,303 |
Total expenses | 22,142 | 21,303 |
Income (loss) from operations | -22,140 | -20,857 |
Gain (loss) on sale of marketable securities | ' | 2,773 |
Net income (loss) attributable to Common Shareholders | -22,140 | -18,084 |
Net income (loss) attributable to Common Shareholders per Common Share: Basic and Diluted | ($0.05) | ($0.04) |
Weighted average number of Common Shares outstanding: Basic and Diluted | 405,096 | 405,096 |
Comprehensive income (loss): | ' | ' |
Net income (loss) | -22,140 | -18,084 |
Other comprehensive income (loss): | ' | ' |
Reclassification adjustment for realized (gain) loss on sale of marketable securities | ' | -2,773 |
Unrealized gain (loss) on marketable securities | ' | 7,794 |
Comprehensive income (loss) | ($22,140) | ($13,063) |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Cash flows from operating activities: | ' | ' |
Net income (loss) | ($22,140) | ($18,084) |
Adjustments to reconcile net income (loss) to net cash used in continuing operations: | ' | ' |
(Gain) loss on sale of marketable securities | ' | -2,773 |
Net change in operating assets and liabilities: | ' | ' |
Other assets | 2,330 | 2,286 |
Accounts payable and accrued expenses | 1,500 | 11,000 |
Net cash from (used for) continuing operations | -18,310 | -7,571 |
Cash flows from investing activities: | ' | ' |
Cash used for the purchase of marketable securities | -2 | -53,967 |
Proceeds from the sale of marketable securities | 20,000 | 76,341 |
Net cash from (used for) investing activities | 19,998 | 22,374 |
Cash flows from financing activities: | ' | ' |
Net cash from (used for) financing activities | ' | ' |
Net increase (decrease) in cash | 1,688 | 14,803 |
Cash | ' | ' |
Beginning of period | 9,643 | 15,337 |
End of period | $11,331 | $30,140 |
Organization
Organization | 3 Months Ended |
Mar. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Organization | ' |
Note 1 – Organization | |
Paragon Real Estate Equity and Investment Trust (the “Company,” “Paragon,” “we,” “our,” or “us”) is a Maryland shell corporation primarily focused on maintaining its corporate existence and SEC reporting history to enable it, in the future, to raise additional capital and make real estate investments. Future real estate investments may include acquisition and development of retail, office, office warehouse, industrial, multifamily, hotel, other commercial properties, acquisition of or merger with a REIT or real estate operating company and joint venture investments. Excess funds are invested in an insured deposit account at a securities brokerage firm. |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
Note 2 – Basis of Presentation | |
Condensed Consolidated Financial Statement Presentation | |
We have prepared the condensed consolidated financial statements without audit pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”).Certain information and footnote disclosures normally included in the financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. However, we believe that the included disclosures are adequate to make the information presented not misleading. In our opinion, all adjustments (consisting solely of normal recurring items) necessary for a fair presentation of our financial position as of March 31, 2014, the results of our operations for the three month periods ended March 31, 2014 and 2013, and of our cash flows for the three month periods ended March 31, 2014 and 2013 have been included. The results of operations for interim periods are not necessarily indicative of the results for a full year. For further information, please see our consolidated financial statements and footnotes included in the Annual Report on Form 10-K for the year ended December 31, 2013. | |
The Company presents its financial statements on a consolidated basis because it combines its accounts with a wholly-owned subsidiary that ceased operations in 2002. All significant intercompany transactions are eliminated in consolidation. | |
Going Concern | |
The financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the continued operations as a public company and paying liabilities in the normal course of business. The Company is being maintained as a corporate shell that is current in its SEC filings. Operations consist only of investment of cash in an insured deposit account at a securities brokerage firm at the present time, and previously, on a temporary basis, in publicly traded real estate companies, while management and the board evaluate real estate opportunities to put into the Company or decide to sell the entity to a party that needs a public shell. | |
At March 31, 2014, our cash in the operating account was $11,331. The increase in cash during the first three months of 2014 was $1,688. In the first three months of 2014, we transferred $20,000 to the operating account from the insured deposit account at the securities brokerage firm. The cash in both the operating account and the insured deposit account is available to pay expenses to keep the Company currently filed as a public company. Expenses, such as salaries and rent, have been eliminated so that the only expenses being incurred are to keep the Company current in its SEC filings, such as accounting and audit fees. Our ability to continue as a going concern will be dependent upon acquiring assets to generate cash flow because our investment of cash in an insured deposit account is our only revenue generating asset and will not generate enough cash flow to allow us to continue as a going concern. | |
There can be no assurance that the Company will be able to acquire an operating company, be acquired by or merge with another company, raise capital or otherwise continue to exist as a going concern. Even if our management is successful in closing a transaction, investors may not value the transaction in the same manner as we did, and investors may not value the transaction as they would value other transactions or alternatives. Failure to obtain external sources of capital and complete a transaction will materially and adversely affect the Company’s ability to continue operations. |
Marketable_Securities
Marketable Securities | 3 Months Ended |
Mar. 31, 2014 | |
Marketable Securities [Abstract] | ' |
Marketable Securities | ' |
Note 3 – Marketable Securities | |
All of the Company’s investments in marketable securities were sold during the first quarter of 2013 and the funds were deposited in an insured deposit account at a securities brokerage firm. | |
As of March 31, 2014, our marketable securities had a fair market value of $57,375 and was in the form of cash in an insured deposit account at the brokerage firm. The $2 of income received was deposited into the insured deposit account at the securities brokerage firm and we transferred $20,000 from that account to the operating account in the first three months of 2014. | |
The Company recognizes gain or loss on the sale of marketable securities based upon the first-in-first-out method. During the three month period ended March 31, 2013, the Company sold $76,341 of marketable securities having a cost basis of $73,568 and recorded a gain of $2,773. The proceeds of $76,341 were deposited into an insured deposit account at a securities brokerage firm. The Company transferred $23,000 to the operating account and the difference of $53,341 plus the dividends received on the marketable securities during the first quarter of 2013 of $626, for a total of $53,967, are shown as purchases in marketable securities. |
Loss_Per_Share
Loss Per Share | 3 Months Ended |
Mar. 31, 2014 | |
Earnings Per Share [Abstract] | ' |
Loss Per Share | ' |
Note 4 – Loss Per Share | |
Net loss per weighted average common share outstanding—basic and diluted are computed based on the weighted average number of common shares outstanding for the period. The weighted average number of common shares outstanding for the three months ended March 31, 2014 and March 31, 2013 were 405,096. Common share equivalents of 2,448,892 as of March 31, 2014 and March 31, 2013 include outstanding Class A Convertible Preferred Shares and Class C Convertible Preferred Shares and are not included in net loss per weighted average common share outstanding—diluted as they would be anti-dilutive. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||
Fair Value Measurements | ' | ||||||||
Note 5 – Fair Value Measurements | |||||||||
Except for those assets and liabilities which are required by authoritative accounting guidance to be recorded at fair value in our Condensed Consolidated Balance Sheets, we have elected not to record any other assets or liabilities at fair value. No events occurred during the first three months of 2014 which would require adjustment to the recognized balances of assets or liabilities which are recorded at fair value on a nonrecurring basis. | |||||||||
The following table provides information on those assets and liabilities measured at fair value on a recurring basis. | |||||||||
Fair Value Measurement Using | |||||||||
Level 1 | Level 2 | Level 3 | |||||||
Marketable Securities | |||||||||
March 31, 2014: | |||||||||
Cash Insured Deposits | $ | 57,375 | |||||||
Total March 31, 2014 | $ | 57,375 | |||||||
December 31, 2013: | |||||||||
Cash Insured Deposits | $ | 77,374 | |||||||
Total December 31, 2013 | $ | 77,374 | |||||||
The fair value of the marketable securities is based on the amount of cash in an insured deposit account at the brokerage firm. |
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Policies [Abstract] | ' |
Condensed Consolidated Financial Statement Presentation | ' |
Condensed Consolidated Financial Statement Presentation | |
We have prepared the condensed consolidated financial statements without audit pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”).Certain information and footnote disclosures normally included in the financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. However, we believe that the included disclosures are adequate to make the information presented not misleading. In our opinion, all adjustments (consisting solely of normal recurring items) necessary for a fair presentation of our financial position as of March 31, 2014, the results of our operations for the three month periods ended March 31, 2014 and 2013, and of our cash flows for the three month periods ended March 31, 2014 and 2013 have been included. The results of operations for interim periods are not necessarily indicative of the results for a full year. For further information, please see our consolidated financial statements and footnotes included in the Annual Report on Form 10-K for the year ended December 31, 2013. | |
The Company presents its financial statements on a consolidated basis because it combines its accounts with a wholly-owned subsidiary that ceased operations in 2002. All significant intercompany transactions are eliminated in consolidation. | |
Going Concern | ' |
Going Concern | |
The financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the continued operations as a public company and paying liabilities in the normal course of business. The Company is being maintained as a corporate shell that is current in its SEC filings. Operations consist only of investment of cash in an insured deposit account at a securities brokerage firm at the present time, and previously, on a temporary basis, in publicly traded real estate companies, while management and the board evaluate real estate opportunities to put into the Company or decide to sell the entity to a party that needs a public shell. | |
At March 31, 2014, our cash in the operating account was $11,331. The increase in cash during the first three months of 2014 was $1,688. In the first three months of 2014, we transferred $20,000 to the operating account from the insured deposit account at the securities brokerage firm. The cash in both the operating account and the insured deposit account is available to pay expenses to keep the Company currently filed as a public company. Expenses, such as salaries and rent, have been eliminated so that the only expenses being incurred are to keep the Company current in its SEC filings, such as accounting and audit fees. Our ability to continue as a going concern will be dependent upon acquiring assets to generate cash flow because our investment of cash in an insured deposit account is our only revenue generating asset and will not generate enough cash flow to allow us to continue as a going concern. | |
There can be no assurance that the Company will be able to acquire an operating company, be acquired by or merge with another company, raise capital or otherwise continue to exist as a going concern. Even if our management is successful in closing a transaction, investors may not value the transaction in the same manner as we did, and investors may not value the transaction as they would value other transactions or alternatives. Failure to obtain external sources of capital and complete a transaction will materially and adversely affect the Company’s ability to continue operations. |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ||||||||
The following table provides information on those assets and liabilities measured at fair value on a recurring basis. | |||||||||
Fair Value Measurement Using | |||||||||
Level 1 | Level 2 | Level 3 | |||||||
Marketable Securities | |||||||||
March 31, 2014: | |||||||||
Cash Insured Deposits | $ | 57,375 | |||||||
Total March 31, 2014 | $ | 57,375 | |||||||
December 31, 2013: | |||||||||
Cash Insured Deposits | $ | 77,374 | |||||||
Total December 31, 2013 | $ | 77,374 |
Basis_of_Presentation_Details_
Basis of Presentation (Details Narrative) (USD $) | 3 Months Ended | |||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
Accounting Policies [Abstract] | ' | ' | ' | ' |
Cash | $11,331 | $30,140 | $9,643 | $15,337 |
Net increase (decrease) in cash | 1,688 | 14,803 | ' | ' |
Proceeds from the sale of marketable securities | $20,000 | $76,341 | ' | ' |
Marketable_Securities_Details_
Marketable Securities (Details Narrative) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Marketable Securities [Abstract] | ' | ' | ' |
Marketable securities | $57,375 | ' | $77,374 |
Cash used for the purchase of marketable securities | 2 | 53,967 | ' |
Proceeds from the sale of marketable securities | 20,000 | 76,341 | ' |
Amount marketable securities sold for | ' | 76,341 | ' |
Marketable securities cost basis | ' | 73,568 | ' |
Gain (loss) on sale of marketable securities | ' | 2,773 | ' |
Cash deducted from proceeds from the sale of marketable securities and transferred to operating account | ' | 23,000 | ' |
Difference in proceeds from the sale of marketable securities | ' | 53,341 | ' |
Dividends received during the period | ' | $626 | ' |
Loss_Per_Share_Details_Narrati
Loss Per Share (Details Narrative) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Earnings Per Share [Abstract] | ' | ' |
Weighted average number of Common Shares outstanding: Basic and Diluted (in Shares) | 405,096 | 405,096 |
Common share equivalents excluded from EPS calculation due to antidilutive effect | 2,448,892 | 2,448,892 |
Fair_Value_Measurements_Assets
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 |
Level 1 [Member] | Level 1 [Member] | Level 2 [Member] | Level 2 [Member] | Level 3 [Member] | Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Cash insured deposits | ' | ' | $57,375 | $77,374 | ' | ' | ' | ' |
Marketable securities | $57,375 | $77,374 | $57,375 | $77,374 | ' | ' | ' | ' |