Shares Offered by the Company
|
| |
Price Per
Share to Public |
| |
Proceeds to
Company(1) |
| ||||||
Per Offered Share
|
| | | $ | | | | | | $ | | | |
Maximum Offering Amount
|
| | | $ | | | | | | $ | | | |
Shares Offered by the Selling Securityholders
|
| |
Price Per
Share to Public |
| |
Proceeds to Selling
Securityholders |
| ||||||
Per Offered Share
|
| | | $ | | | | | | $ | | | |
Maximum Offering Amount
|
| | | $ | | | | | | $ | | | |
| | | | | 1 | | | |
| | | | | 7 | | | |
| | | | | 21 | | | |
| | | | | 22 | | | |
| | | | | 23 | | | |
| | | | | 24 | | | |
| | | | | 30 | | | |
| | | | | 31 | | | |
| | | | | 49 | | | |
| | | | | 52 | | | |
| | | | | 54 | | | |
| | | | | 56 | | | |
| | | | | 62 | | | |
| | | | | 65 | | | |
| | | | | 66 | | | |
| | | | | 70 | | | |
| | | | | 72 | | | |
| | | | | 74 | | | |
| | | | | 75 | | | |
| | | | | 75 | | | |
| | | | | F-1 | | | |
| | | | | III-1 | | | |
| | | | | III-2 | | |
| | |
Year Ended
December 31, |
| |||||||||
| | |
2018
|
| |
2017
|
| ||||||
Consolidated Results | | | | | | | | | | | | | |
Total AUM Rollforward – @ Fair Value
|
| | | | | | | | | | | | |
Balance, Beginning
|
| | | $ | 278,572,186 | | | | | $ | 204,112,874 | | |
Assets Acquired
|
| | | | 29,957,391 | | | | | | 17,943,621 | | |
Construction/Renovation
|
| | | | 13,016,662 | | | | | | 25,421,170 | | |
Market Appreciation/(Depreciation)
|
| | | | 64,926,964 | | | | | | 42,339,202 | | |
Assets Sold
|
| | | | (11,916,203) | | | | | | (11,244,681) | | |
Balance, End
|
| | | $ | 374,557,000 | | | | | $ | 278,572,186 | | |
On Basis of Full Conversion of Issued Instruments
|
| |
$50 Million
Raise |
| |||
Price per share
|
| | | $ | | | |
Shares issued
|
| |
|
| |||
Capital raised
|
| | | $ | | | |
Less: Estimated offering costs
|
| | | $ | ( ) | | |
Net Offering Proceeds
|
| | | $ | | | |
Net tangible book value pre-offering(1)
|
| | | $ | | | |
Net tangible book value post-offering
|
| | | $ | | | |
Shares issued and outstanding pre-offering assuming full conversion(2)
|
| |
|
| |||
Post-offering shares issued and outstanding
|
| |
|
| |||
Net tangible book value per share prior to offering(1)(2)
|
| | | $ | | | |
Increase/(Decrease) per share attributable to new investors
|
| | | $ | | | |
Net tangible book value per share after offering
|
| | | $ | | | |
Dilution per share to new investors ($)
|
| | | $ | | | |
Dilution per share to new investors (%)
|
| | | | % | | |
| | |
Shares Purchased
|
| |
Total Consideration
|
| |
Average
Price Per Share |
| |||||||||||||||||||||
Assuming Maximum Number of Shares Sold:
|
| |
Number
|
| |
Percentage
|
| |
Amount
|
| |
Percentage
|
| ||||||||||||||||||
Existing Caliber Stockholders(1)
|
| | | | 27,974,212 | | | | | | 100.0% | | | | | $ | 12,411,308 | | | | | | 100.0% | | | | | $ | 0.44 | | |
New Caliber Class A Common Stockholders(2)
|
| |
|
| | | | % | | | | | $ | | | | | | % | | | | | $ | | | |||||
Total
|
| |
|
| | |
|
100.0%
|
| | | | $ | | | | | | % | | | | | | | | |
| | | | | |
As of December 31, 2018
|
| |||||||||||||||
Fund Name
|
| |
Fund Inception
Date |
| |
Contributed
Capital, Net(1) |
| |
Investments, at
Cost(2) |
| |
Investments, at
Fair Value(3) |
| |||||||||
Hospitality: | | | | | | | | | | | | | | | | | | | | | | |
CHPH, LLC (“CHPH”)
|
| | October 2012 | | | | $ | 10,339,740 | | | | | $ | 23,601,256 | | | | | $ | 32,800,000 | | |
Indian Bend Hotel Group, LLC (“IBHG”)
|
| | September 2014 | | | | | 4,225,842 | | | | | | 11,292,069 | | | | | | 15,000,000 | | |
44th & McDowell Hotel Group, LLC (“44th”)
|
| | May 2015 | | | | | 8,249,646 | | | | | | 22,539,770 | | | | | | 30,700,000 | | |
Tucson East, LLC (“Tucson East”)
|
| | May 2016 | | | | | 9,696,091 | | | | | | 20,709,181 | | | | | | 25,300,000 | | |
47th Street Phoenix Fund, LLC (“47th Street”)
|
| | October 2016 | | | | | 12,994,123 | | | | | | 36,368,833 | | | | | | 47,800,000 | | |
CH Ocotillo
|
| | June 2018 | | | | | 5,367,820 | | | | | | 12,124,992 | | | | | | 13,800,000 | | |
Elliot 10
|
| | September 2017 | | | | | 3,410,000 | | | | | | 16,763,431 | | | | | | 17,300,000 | | |
SF Alaska, LP (“Salmon Falls”)
|
| | August 2015 | | | | | 5,666,974 | | | | | | 10,239,693 | | | | | | 13,500,000 | | |
Edgewater Hotel Group, LLC (“Edgewater”)
|
| | October 2015 | | | | | 1,620,279 | | | | | | 2,874,180 | | | | | | 4,300,000 | | |
| | | | | | | | 61,570,515 | | | | | | 156,513,405 | | | | | | 200,500,000 | | |
Residential: | | | | | | | | | | | | | | | | | | | | | | |
GC Square, LLC (“GC Square”)
|
| | September 2015 | | | | | 6,280,570 | | | | | | 12,943,775 | | | | | | 25,000,000 | | |
Palms Weekly Portfolio, LP (“Palms”)
|
| | July 2016 | | | | | 6,650,000 | | | | | | 15,050,353 | | | | | | 24,500,000 | | |
South Mountain Square, LLC (“SMS”)
|
| | June 2012 | | | | | — | | | | | | 4,725,059 | | | | | | 10,800,000 | | |
Circle Lofts, LLC (“Eclipse”)
|
| | November 2016 | | | | | 2,491,043 | | | | | | 8,447,794 | | | | | | 11,500,000 | | |
The Roosevelt I, LLC (“Roosevelt”)
|
| | January 2016 | | | | | 2,017,379 | | | | | | 5,110,604 | | | | | | 7,000,000 | | |
CDIF Sunrise, LLC (“Treehouse”)
|
| | April 2014 | | | | | 7,727,619 | | | | | | 12,711,942 | | | | | | 18,200,000 | | |
Caliber Residential Advantage Fund, LP (“CRAF”)
|
| | August 2016 | | | | | 6,247,511 | | | | | | 3,778,884 | | | | | | 4,700,000 | | |
| | | | | | | | 31,414,122 | | | | | | 62,768,411 | | | | | | 101,700,000 | | |
|
| | | | | |
As of December 31, 2018
|
| |||||||||||||||
Fund Name
|
| |
Fund Inception
Date |
| |
Contributed
Capital, Net(1) |
| |
Investments, at
Cost(2) |
| |
Investments, at
Fair Value(3) |
| |||||||||
Commercial: | | | | | | | | | | | | | | | | | | | | | | |
SIP Coffee & Beer Kitchen, LLC (“Sip”)
|
| | February 2017 | | | | | 394,286 | | | | | | 394,286 | | | | | | 600,000 | | |
AZ24HR Storage Kingman, LLC (“Kingman”)
|
| | December 2016 | | | | | 58,025 | | | | | | 536,823 | | | | | | 900,000 | | |
1040 N VIP Blvd, LLC (“VIP”)
|
| | December 2015 | | | | | 161,025 | | | | | | 1,957,537 | | | | | | 1,500,000 | | |
1601 Athol Ave, LLC (“Athol”)
|
| | December 2015 | | | | | 74,866 | | | | | | 1,299,952 | | | | | | 1,800,000 | | |
Logan Airport Storage, LLC (“Logan”)
|
| | February 2016 | | | | | 205,518 | | | | | | 1,832,997 | | | | | | 1,800,000 | | |
CDIF Baywood, LLC (“Baywood”)
|
| | December 2013 | | | | | 85,220 | | | | | | 77,689 | | | | | | 100,000 | | |
CH Mesa Holdings, LLC (“Mesa”)
|
| | July 2017 | | | | | 3,813,804 | | | | | | 8,199,229 | | | | | | 10,400,000 | | |
J-25 Johnstown Holdings, LLC (“J-25”)
|
| | May 2017 | | | | | 2,684,355 | | | | | | 5,200,982 | | | | | | 37,600,000 | | |
Fiesta Tech Owners, LLC (“Fiesta Tech”)
|
| | March 2016 | | | | | 1,804,998 | | | | | | 4,860,929 | | | | | | 8,000,000 | | |
| | | | | | | | 9,282,097 | | | | | | 24,360,424 | | | | | | 62,700,000 | | |
Total Funds
|
| | | | | | $ | 102,266,734 | | | | | $ | 243,642,240 | | | | | $ | 364,900,000 | | |
|
Non-Fund Assets
|
| | | | | | | | | | | | | | | | | | | | | |
Residential: | | | | | | | | | | | | | | | | | | | | |||
Caliber Auction Homes, LLC | | | | | | | | | | | 4,111,640 | | | | | | 6,900,000 | | | |||
Saddleback Ranch, LLC (“Saddleback”) | | | | | | | | | | 1,122,437 | | | | | | 3,500,000 | | | ||||
Total Assets Under Management | | | | $ | 102,266,734 | | | | | $ | 248,876,317 | | | | | $ | 375,300,000 | | |
| | | | | |
As of December 31, 2018
|
| |||||||||||||||
Fund Name
|
| |
Fund Inception
Date |
| |
Contributed
Capital, Net(1) |
| |
Investments, at
Cost(2) |
| |
Investments, at
Fair Value(3) |
| |||||||||
CDIF, LLC (“CDIF”)
|
| | May 2013 | | | | | 35,054,997 | | | | | | 34,533,954 | | | | | | 43,900,000 | | |
Caliber Diversified Opportunity Fund II, LP (“CDOF II”)
|
| | June 2017 | | | | | 13,819,088 | | | | | | 11,015,551 | | | | | | 21,310,000 | | |
Caliber Fixed Income Fund, LLC (“CFIF”)(4)
|
| | March 2014 | | | | | — | | | | | | — | | | | | | — | | |
Caliber Fixed Income Fund II, LLC (“CFIF II”)
|
| | April 2015 | | | | | 7,400,810 | | | | | | — | | | | | | — | | |
Caliber Fixed Income Fund III, LLC (“CFIF III”)
|
| | April 2018 | | | | | 9,882,515 | | | | | | — | | | | | | — | | |
Caliber Tax Advantage Fund (“CTAF”)
|
| | August 2018 | | | | | 12,870,000 | | | | | | 10,293,908 | | | | | | 10,293,908 | | |
| | | | | | | | 79,027,410 | | | | | | 55,843,413 | | | | | | 75,503,908 | | |
| | |
2018
|
| |
2017
|
| |
Change
|
| |
Change
|
| ||||||||||||
Total revenues
|
| | | $ | 70,672,140 | | | | | $ | 64,419,136 | | | | | $ | 6,253,004 | | | | | | 9.7% | | |
Total expenses
|
| | | | 71,593,143 | | | | | | 63,331,217 | | | | | | 8,261,926 | | | | | | 13.0% | | |
Operating Income
|
| | | | (921,003) | | | | | | 1,087,919 | | | | | | (2,008,922) | | | | | | -184.7% | | |
Total other expenses, net
|
| | | | 12,152,622 | | | | | | 9,593,503 | | | | | | 2,559,119 | | | | | | 26.7% | | |
Net Loss Before Income Taxes
|
| | | | (13,073,625) | | | | | | (8,505,584) | | | | | | (4,568,041) | | | | | | 53.7% | | |
Provision for (benefit from) income taxes
|
| | | | — | | | | | | — | | | | | | — | | | | | | 0.0% | | |
Net Loss
|
| | | | (13,073,625) | | | | | | (8,505,584) | | | | | | (4,568,041) | | | | | | 53.7% | | |
Net loss attributable to noncontrolling interests
|
| | | | (10,080,924) | | | | | | (5,802,121) | | | | | | (4,278,803) | | | | | | 73.7% | | |
Net Loss Attributable to CaliberCos, Inc.
|
| | | $ | (2,992,701) | | | | | $ | (2,703,463) | | | | | $ | (289,238) | | | | | | 10.7% | | |
| | |
Year Ended December 31,
|
| | | | | | | | | | | | | |||||||||
| | |
2018
|
| |
2017
|
| |
Change
|
| |
Change
|
| ||||||||||||
Revenues | | | | | | ||||||||||||||||||||
Fund management
|
| | | | 8,381,850 | | | | | | 3,997,765 | | | | | | 4,384,085 | | | | | | 109.7% | | |
Total revenues
|
| | | | 8,381,850 | | | | | | 3,997,765 | | | | | | 4,384,085 | | | | | | 109.7% | | |
Expenses | | | | | | ||||||||||||||||||||
Operating costs
|
| | | | 6,403,829 | | | | | | 3,309,369 | | | | | | 3,094,460 | | | | | | 93.5% | | |
General and administrative
|
| | | | 2,412,934 | | | | | | 2,202,841 | | | | | | 210,093 | | | | | | 9.5% | | |
Marketing and advertising
|
| | | | 487,814 | | | | | | 272,402 | | | | | | 215,412 | | | | | | 79.1% | | |
Depreciation
|
| | | | 85,783 | | | | | | 98,365 | | | | | | (12,582) | | | | | | -12.8% | | |
Total expenses
|
| | | | 9,390,360 | | | | | | 5,882,977 | | | | | | 3,507,383 | | | | | | 59.6% | | |
Operating Loss
|
| | | | (1,008,510) | | | | | | (1,885,212) | | | | | | 876,702 | | | | | | -46.5% | | |
Other (Income) Expenses | | | | | | ||||||||||||||||||||
Other (income) expenses, net
|
| | | | (28,571) | | | | | | 152,498 | | | | | | (181,069) | | | | | | -118.7% | | |
Interest income
|
| | | | — | | | | | | (856) | | | | | | 856 | | | | | | -100.0% | | |
Interest expense
|
| | | | 939,314 | | | | | | 1,463,763 | | | | | | (524,449) | | | | | | -35.8% | | |
Total other expenses, net
|
| | | | 910,743 | | | | | | 1,615,405 | | | | | | (704,662) | | | | | | -43.6% | | |
Net Loss
|
| | | | (1,919,253) | | | | | | (3,500,617) | | | | | | 1,581,364 | | | | | | -45.2% | | |
| | |
Year Ended December 31,
|
| | | | | | | | | | | | | |||||||||
| | |
2018
|
| |
2017
|
| |
Change
|
| |
Change
|
| ||||||||||||
Revenues | | | | | | | | | | | | | | | | | | | | | | | | | |
Construction and development
|
| | | | 9,425,377 | | | | | | 20,565,534 | | | | | | (11,140,157) | | | | | | -54.2% | | |
Other
|
| | | | 9,399 | | | | | | — | | | | | | 9,399 | | | | | | 100.0% | | |
Total revenues
|
| | | | 9,434,776 | | | | | | 20,565,534 | | | | | | (11,130,758) | | | | | | -54.1% | | |
Expenses | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of sales – construction
|
| | | | | | | | | | | | | | | | | | | | | | | | |
and development
|
| | | | 8,824,608 | | | | | | 18,622,858 | | | | | | (9,798,250) | | | | | | -52.6% | | |
Operating costs
|
| | | | 685,756 | | | | | | 543,337 | | | | | | 142,419 | | | | | | 26.2% | | |
General and administrative
|
| | | | 41,492 | | | | | | 35,609 | | | | | | 5,883 | | | | | | 16.5% | | |
Marketing and advertising
|
| | | | 2,275 | | | | | | 8,904 | | | | | | (6,629) | | | | | | -74.4% | | |
Total expenses
|
| | | | 9,554,131 | | | | | | 19,210,708 | | | | | | (9,656,577) | | | | | | -50.3% | | |
Operating (Loss) Income
|
| | | | (119,355) | | | | | | 1,354,826 | | | | | | (1,474,181) | | | | | | -108.8% | | |
Other Expenses | | | | | | | | | | | | | | | | | | | | | | | | | |
Other expenses
|
| | | | — | | | | | | 9,718 | | | | | | (9,718) | | | | | | -100.0% | | |
Total other expenses
|
| | | | — | | | | | | 9,718 | | | | | | (9,718) | | | | | | -100.0% | | |
Net (Loss) Income
|
| | | | (119,355) | | | | | | 1,345,108 | | | | | | (1,464,463) | | | | | | -108.9% | | |
| | |
Year Ended December 31,
|
| | | | | | | | | | | | | |||||||||
| | |
2018
|
| |
2017
|
| |
Change
|
| |
Change
|
| ||||||||||||
Revenues | | | | | | | | | | | | | | | | | | | | | | | | | |
Rental income
|
| | | | 854 | | | | | | — | | | | | | 854 | | | | | | 100.0% | | |
Property management
|
| | | | 476,381 | | | | | | 700,870 | | | | | | (224,489) | | | | | | -32.0% | | |
Other
|
| | | | 87,475 | | | | | | — | | | | | | 87,475 | | | | | | 100.0% | | |
Total revenues
|
| | | | 564,710 | | | | | | 700,870 | | | | | | (136,160) | | | | | | -19.4% | | |
Expenses | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating costs
|
| | | | 195,699 | | | | | | 677,813 | | | | | | (482,114) | | | | | | -71.1% | | |
General and administrative
|
| | | | 53,221 | | | | | | 87,483 | | | | | | (34,262) | | | | | | -39.2% | | |
Marketing and advertising
|
| | | | 31 | | | | | | — | | | | | | 31 | | | | | | 100.0% | | |
Management fees
|
| | | | 1,075 | | | | | | 880 | | | | | | 195 | | | | | | 22.2% | | |
Total expenses
|
| | | | 250,026 | | | | | | 766,176 | | | | | | (516,150) | | | | | | -67.4% | | |
Net Income (Loss)
|
| | | | 314,684 | | | | | | (65,306) | | | | | | 379,990 | | | | | | -581.9% | | |
| | |
Year Ended December 31,
|
| | | | | | | | | | | | | |||||||||
| | |
2018
|
| |
2017
|
| |
Change
|
| |
Change
|
| ||||||||||||
Revenues | | | | | | | | | | | | | | | | | | | | | | | | | |
Brokerage
|
| | | | 1,892,329 | | | | | | 1,860,411 | | | | | | 31,918 | | | | | | 1.7% | | |
Total revenues
|
| | | | 1,892,329 | | | | | | 1,860,411 | | | | | | 31,918 | | | | | | 1.7% | | |
Expenses | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of sales – brokerage
|
| | | | 1,033,162 | | | | | | 1,445,458 | | | | | | (412,296) | | | | | | -28.5% | | |
Operating costs
|
| | | | 94,941 | | | | | | 15,748 | | | | | | 79,193 | | | | | | 502.9% | | |
General and administrative
|
| | | | 110,390 | | | | | | 124,385 | | | | | | (13,995) | | | | | | -11.3% | | |
Marketing and advertising
|
| | | | 715 | | | | | | 60,003 | | | | | | (59,288) | | | | | | -98.8% | | |
Total expenses
|
| | | | 1,239,208 | | | | | | 1,645,594 | | | | | | (406,386) | | | | | | -24.7% | | |
Operating Income
|
| | | | 653,121 | | | | | | 214,817 | | | | | | 438,304 | | | | | | 204.0% | | |
Other Expenses | | | | | | | | | | | | | | | | | | | | | | | | | |
Other expenses
|
| | | | 160 | | | | | | — | | | | | | 160 | | | | | | 100.0% | | |
Interest expense
|
| | | | 743 | | | | | | 3,478 | | | | | | (2,735) | | | | | | -78.6% | | |
Total other expenses
|
| | | | 903 | | | | | | 3,478 | | | | | | (2,575) | | | | | | -74.0% | | |
Net Income
|
| | | | 652,218 | | | | | | 211,339 | | | | | | 440,879 | | | | | | 208.6% | | |
| | |
Year Ended December 31,
|
| | | | | | | | | | | | | |||||||||
| | |
2018
|
| |
2017
|
| |
Change
|
| |
Change
|
| ||||||||||||
Revenues | | | | | | | | | | | | | | | | | | | | | | | | | |
Hospitality
|
| | | | 50,866,351 | | | | | | 46,283,522 | | | | | | 4,582,829 | | | | | | 9.9% | | |
Total revenues
|
| | | | 50,866,351 | | | | | | 46,283,522 | | | | | | 4,582,829 | | | | | | 9.9% | | |
Expenses | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of sales – hospitality
|
| | | | 20,142,966 | | | | | | 18,185,547 | | | | | | 1,957,419 | | | | | | 10.8% | | |
Operating costs
|
| | | | 10,640,885 | | | | | | 7,545,355 | | | | | | 3,095,530 | | | | | | 41.0% | | |
General and administrative
|
| | | | 3,496,893 | | | | | | 5,110,525 | | | | | | (1,613,632) | | | | | | -31.6% | | |
Marketing and advertising
|
| | | | 3,897,823 | | | | | | 3,398,913 | | | | | | 498,910 | | | | | | 14.7% | | |
Franchise fees
|
| | | | 3,580,300 | | | | | | 3,067,828 | | | | | | 512,472 | | | | | | 16.7% | | |
Management fees
|
| | | | 3,919,837 | | | | | | 2,498,623 | | | | | | 1,421,214 | | | | | | 56.9% | | |
Depreciation
|
| | | | 6,662,663 | | | | | | 5,518,624 | | | | | | 1,144,039 | | | | | | 20.7% | | |
Total expenses
|
| | | | 52,341,367 | | | | | | 45,325,415 | | | | | | 7,015,952 | | | | | | 15.5% | | |
Operating (Loss) Income
|
| | | | (1,475,016) | | | | | | 958,107 | | | | | | (2,433,123) | | | | | | -254.0% | | |
Other (Income) Expenses | | | | | | | | | | | | | | | | | | | | | | | | | |
Other expenses, net
|
| | | | 726,910 | | | | | | 532,391 | | | | | | 194,519 | | | | | | 36.5% | | |
Interest income
|
| | | | (35,301) | | | | | | — | | | | | | (35,301) | | | | | | 100.0% | | |
Interest expense
|
| | | | 9,805,722 | | | | | | 7,786,175 | | | | | | 2,019,547 | | | | | | 25.9% | | |
Total other expenses, net
|
| | | | 10,497,331 | | | | | | 8,318,566 | | | | | | 2,178,765 | | | | | | 26.2% | | |
Net Loss
|
| | | | (11,972,347) | | | | | | (7,360,459) | | | | | | (4,611,888) | | | | | | 62.7% | | |
| | |
Year Ended December 31,
|
| | | | | | | | | | | | | |||||||||
| | |
2018
|
| |
2017
|
| |
Change
|
| |
Change
|
| ||||||||||||
Revenues | | | | | | | | | | | | | | | | | | | | | | | | | |
Real estate sales
|
| | | | 6,289,200 | | | | | | 7,877,470 | | | | | | (1,588,270) | | | | | | -20.2% | | |
Rental income
|
| | | | 8,204,318 | | | | | | 7,613,774 | | | | | | 590,544 | | | | | | 7.8% | | |
Property management
|
| | | | 60,804 | | | | | | — | | | | | | 60,804 | | | | | | 100.0% | | |
Other
|
| | | | 75,675 | | | | | | — | | | | | | 75,675 | | | | | | 100.0% | | |
Total revenues
|
| | | | 14,629,997 | | | | | | 15,491,244 | | | | | | (861,247) | | | | | | -5.6% | | |
Expenses | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of sales – real estate
|
| | | | 5,435,336 | | | | | | 7,085,829 | | | | | | (1,650,493) | | | | | | -23.3% | | |
Operating costs
|
| | | | 4,361,579 | | | | | | 4,218,934 | | | | | | 142,645 | | | | | | 3.4% | | |
General and administrative
|
| | | | 431,494 | | | | | | 609,122 | | | | | | (177,628) | | | | | | -29.2% | | |
Marketing and advertising
|
| | | | 263,180 | | | | | | 158,075 | | | | | | 105,105 | | | | | | 66.5% | | |
Management fees
|
| | | | 1,072,093 | | | | | | 728,129 | | | | | | 343,964 | | | | | | 47.2% | | |
Depreciation
|
| | | | 2,560,219 | | | | | | 2,157,223 | | | | | | 402,996 | | | | | | 18.7% | | |
Impairment
|
| | | | 839,250 | | | | | | 460,906 | | | | | | 378,344 | | | | | | 82.1% | | |
Total expenses
|
| | | | 14,963,151 | | | | | | 15,418,218 | | | | | | (455,067) | | | | | | -3.0% | | |
Operating Income
|
| | | | (333,154) | | | | | | 73,026 | | | | | | (406,180) | | | | | | 391.1% | | |
Other (Income) Expenses | | | | | | | | | | | | | | | | | | | | | | | | | |
Other expenses, net
|
| | | | (179,867) | | | | | | 264,641 | | | | | | 247,271 | | | | | | 93.4% | | |
Interest income
|
| | | | (33,801) | | | | | | (23,571) | | | | | | (10,230) | | | | | | 43.4% | | |
Gain on disposition of real estate
|
| | | | (2,608,061) | | | | | | (1,478,865) | | | | | | (1,129,196) | | | | | | 76.4% | | |
Interest expense
|
| | | | 2,618,240 | | | | | | 2,598,563 | | | | | | 19,677 | | | | | | 0.8% | | |
Total other expenses, net
|
| | | | (203,489) | | | | | | 1,360,768 | | | | | | (872,478) | | | | | | -64.1% | | |
Net Loss
|
| | | | (129,665) | | | | | | (1,287,742) | | | | | | 1,158,077 | | | | | | -89.9% | | |
| | |
Year Ended December 31,
|
| | | | | | | | | | | | | |||||||||
| | |
2018
|
| |
2017
|
| |
Change
|
| |
Change
|
| ||||||||||||
Revenues | | | | | | | | | | | | | | | | | | | | | | | | | |
Rental income
|
| | | | 959,077 | | | | | | 964,115 | | | | | | (5,038) | | | | | | -0.5% | | |
Total revenues
|
| | | | 959,077 | | | | | | 964,115 | | | | | | (5,038) | | | | | | -0.5% | | |
Expenses | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating costs
|
| | | | 550,412 | | | | | | 744,332 | | | | | | (193,920) | | | | | | -26.1% | | |
General and administrative
|
| | | | 292,237 | | | | | | 30,448 | | | | | | 261,789 | | | | | | 859.8% | | |
Marketing and advertising
|
| | | | 40,726 | | | | | | 60,895 | | | | | | (20,169) | | | | | | -33.1% | | |
Management fees
|
| | | | 234,518 | | | | | | 264,604 | | | | | | (30,086) | | | | | | -11.4% | | |
Depreciation
|
| | | | 270,841 | | | | | | 440,375 | | | | | | (169,534) | | | | | | -38.5% | | |
Total expenses
|
| | | | 1,388,734 | | | | | | 1,540,654 | | | | | | (151,920) | | | | | | -9.9% | | |
Operating Loss
|
| | | | (429,657) | | | | | | (576,539) | | | | | | 146,882 | | | | | | -25.5% | | |
Other (Income) Expenses | | | | | | | | | | | | | | | | | | | | | | | | | |
Other expenses, net
|
| | | | 94,119 | | | | | | 17,501 | | | | | | 76,618 | | | | | | 437.8% | | |
Gain on disposition of real estate
|
| | | | (699,222) | | | | | | (492,362) | | | | | | (206,860) | | | | | | 42.0% | | |
Interest expense
|
| | | | 1,309,209 | | | | | | 640,343 | | | | | | 668,866 | | | | | | 104.5% | | |
Total other expenses, net
|
| | | | 704,106 | | | | | | 165,482 | | | | | | 538,624 | | | | | | 325.5% | | |
Net Loss
|
| | | | (1,133,763) | | | | | | (742,021) | | | | | | (391,742) | | | | | | 52.8% | | |
| | |
Year Ended December 31,
|
| | | | | | | | | | | | | |||||||||
| | |
2018
|
| |
2017
|
| |
Change
|
| |
Change
|
| ||||||||||||
Revenues | | | | | | | | | | | | | | | | | | | | | | | | | |
Fund management
|
| | | | — | | | | | | 30,000 | | | | | | (30,000) | | | | | | -100.0% | | |
Total revenues
|
| | | | — | | | | | | 30,000 | | | | | | (30,000) | | | | | | -100.0% | | |
Expenses | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating costs
|
| | | | 636,854 | | | | | | 36,086 | | | | | | 600,768 | | | | | | 1664.8% | | |
General and administrative
|
| | | | 1,620,256 | | | | | | 796,882 | | | | | | 823,374 | | | | | | 103.3% | | |
Marketing and advertising
|
| | | | 76,658 | | | | | | 70,006 | | | | | | 6,652 | | | | | | 9.5% | | |
Management fees
|
| | | | 1,039,150 | | | | | | 771,718 | | | | | | 267,432 | | | | | | 34.7% | | |
Total expenses
|
| | | | 3,372,918 | | | | | | 1,674,692 | | | | | | 1,698,226 | | | | | | 101.4% | | |
Operating Loss
|
| | | | (3,372,918) | | | | | | (1,644,692) | | | | | | (1,728,226) | | | | | | 105.1% | | |
Other (Income) Expenses | | | | | | | | | | | | | | | | | | | | | | | | | |
Other income
|
| | | | — | | | | | | (1,217) | | | | | | 1,217 | | | | | | -100.0% | | |
Income from investments
|
| | | | (2,383,746) | | | | | | (3,807,830) | | | | | | 1,424,084 | | | | | | -37.4% | | |
Interest income
|
| | | | (1,212,541) | | | | | | (1,414,847) | | | | | | 202,306 | | | | | | -14.3% | | |
Interest expense
|
| | | | 2,419,432 | | | | | | 2,649,432 | | | | | | (230,000) | | | | | | -8.7% | | |
Total other income, net
|
| | | | (1,176,855) | | | | | | (2,574,462) | | | | | | 1,397,607 | | | | | | -54.3% | | |
Net (Loss) Income
|
| | | | (2,196,063) | | | | | | 929,770 | | | | | | (3,125,833) | | | | | | -336.2% | | |
| | |
2018
|
| |
2017
|
| ||||||
Hospitality
|
| | | $ | 39,338,449 | | | | | $ | 32,716,015 | | |
Residential
|
| | | | 20,059,553 | | | | | | 16,776,624 | | |
Commercial
|
| | | | 5,428,238 | | | | | | 1,615,000 | | |
Diversified
|
| | | | 79,027,410 | | | | | | 56,128,969 | | |
| | | | $ | 143,853,649 | | | | | $ | 107,236,608 | | |
| | |
2018
|
| |
2017
|
| ||||||
Hospitality
|
| | | $ | 200,346,000 | | | | | $ | 149,699,999 | | |
Residential
|
| | | | 111,572,000 | | | | | | 90,307,900 | | |
Commercial
|
| | | | 62,639,000 | | | | | | 38,564,287 | | |
| | | | $ | 374,557,000 | | | | | $ | 278,572,186 | | |
| | |
2018
|
| |
2017
|
| ||||||
Beginning of year
|
| | | $ | 107,236,609 | | | | | $ | 92,060,634 | | |
Originations
|
| | | | 49,644,702 | | | | | | 27,696,552 | | |
Redemptions
|
| | | | (13,027,662) | | | | | | (12,520,577) | | |
End of year
|
| | | $ | 143,853,650 | | | | | $ | 107,236,609 | | |
| | |
2018
|
| |
2017
|
| ||||||
Beginning of year
|
| | | $ | 278,572,186 | | | | | $ | 204,112,872 | | |
Assets acquired
|
| | | | 29,957,391 | | | | | | 17,943,620 | | |
Construction/Renovation
|
| | | | 13,016,662 | | | | | | 25,421,170 | | |
Market appreciation/depreciation, net
|
| | | | 64,926,964 | | | | | | 42,339,205 | | |
Asset sold
|
| | | | (11,916,203) | | | | | | (11,244,681) | | |
End of year
|
| | | $ | 374,557,000 | | | | | $ | 278,572,186 | | |
| | |
Year Ended December 31,
|
| |||||||||||||||
| | |
2018
|
| |
2017
|
| | | ||||||||||
Net Loss Attributable to CaliberCos Inc.
|
| | | $ | (2,992,701) | | | | | $ | (2,703,463) | | | | | ||||
(1) Add: | | | | | | ||||||||||||||
Interest expense
|
| | | | 1,504,214 | | | | | | 2,562,393 | | | | | ||||
Provision for income taxes
|
| | | | — | | | | | | — | | | | | ||||
Depreciation expense
|
| | | | 334,128 | | | | | | 518,256 | | | | | ||||
Amortization expense
|
| | | | — | | | | | | 41,220 | | | | | ||||
EBITDA
|
| | | | (1,154,359) | | | | | | 418,406 | | | | | ||||
(1) Add: | | | | | | ||||||||||||||
Impairment expense
|
| | | | 839,250 | | | | | | 460,906 | | | | | ||||
Loss on extinguishment of debt
|
| | | | — | | | | | | 40,301 | | | | | ||||
Severance expense
|
| | | | 25,000 | | | | | | 150,000 | | | | | ||||
Share buy back
|
| | | | 48,600 | | | | | | — | | | | | ||||
ESOP
|
| | | | 1,333,000 | | | | | | — | | | | | ||||
Founders income tax reimbursement
|
| | | | 140,000 | | | | | | 200,000 | | | | | ||||
Form 1-A costs
|
| | | | 1,130,486 | | | | | | 1,039,195 | | | | | ||||
Adjusted EBITDA
|
| | | $ | 2,361,977 | | | | | $ | 2,308,808 | | | | |
Entity/Fund
|
| |
Property
|
| |
Total
Construction Cost |
| |
Construction
Start Date |
| |
Construction
Completion Date |
| |
2018
EBITDA |
| ||||||
CHPH, LLC
|
| | Crown Plaza Hotel Phoenix Airport |
| | | $ | 11,700,000 | | | |
November 2013
|
| |
December 2016
|
| | | $ | 1,234,995 | | |
Indian Bend Hotel Group, LLC
|
| | Hampton Inn & Suites Scottsdale/Riverwalk |
| | | | N/A | | | | N/A | | | N/A | | | | | 1,046,688 | | |
44th & McDowell Hotel Group, LLC
|
| | Holiday Inn & Suites Phoenix Airport North |
| | | | 6,063,000 | | | | August 2015 | | | March 2018 | | | | | 970,542 | | |
Tucson East, LLC
|
| | Hilton Tucson East | | | | | 9,500,000 | | | | July 2016 | | | May 2018 | | | | | 468,771 | | |
Elliot 10 Fund, LLC
|
| | Four Points by Sheraton | | | | | 856,700 | | | | January 2019 | | | June 2019 | | | | | (1,463,383) | | |
CH Ocotillo Inv Fund, LLC
|
| | Holiday Inn & Suites Chandler | | | | | N/A | | | | N/A | | | N/A | | | | | (294,170) | | |
47th Street Phoenix Fund, LLC
|
| | Hilton Phoenix Airport | | | | | 352,375 | | | | June 2017 | | | June 2019 | | | | | 3,818,261 | | |
Edgewater Hotel Group, LLC
|
| | Rodeway Inn Edgewater | | | | | 100,000 | | | | April 2019 | | | June 2019 | | | | | (507,100) | | |
SF Alaska, LP
|
| | Salmon Falls Resort | | | | | 400,000 | | | | January 2016 | | | June 2019 | | | | | (813,867) | | |
Uptown Square, LLC
|
| | Uptown Apartments | | | | | 100,000 | | | | April 2014 | | |
December 2017
|
| | | | (8,618) | | |
South Mountain Square, LLC
|
| | South Mountain Apartments | | | | | 291,000 | | | | January 2018 | | | May 2018 | | | | | 411,805 | | |
GC Square, LLC
|
| | GC Square Apartments | | | | | 6,731,500 | | | |
December 2016
|
| | October 2018 | | | | | (48,303) | | |
Palms Weekly Portfolio, LP
|
| | Palms Weekly Apartment Portfolio | | | | | N/A | | | | N/A | | | N/A | | | | | 1,551,715 | | |
CDIF, LLC
|
| | Mountain View Square Apartments | | | | | N/A | | | | N/A | | | N/A | | | | | 2,657,419 | | |
CDIF, LLC
|
| | Treehouse Apartments | | | | | 6,900,000 | | | | March 2014 | | | June 2017 | | | | | 871,815 | | |
CDIF, LLC
|
| | A 24Hr Storage | | | | | N/A | | | | N/A | | | N/A | | | | | 2,697 | | |
CDIF, LLC
|
| | Baywood Square Professional Park | | | | | 325,000 | | | |
September 2015
|
| |
November 2016
|
| | | | 5,514 | | |
Fiesta Tech Owners, LLC
|
| | Fiesta Tech Commercial Center | | | | | N/A | | | | N/A | | | N/A | | | | | (9,980) | | |
1040 VIP, LLC
|
| | 24X7 Automated Storage | | | | | N/A | | | | N/A | | | N/A | | | | | (65,605) | | |
1601 Athol Avenue, LLC
|
| | 24X7 Automated Storage | | | | | N/A | | | | N/A | | | N/A | | | | | (19,014) | | |
Logan Airport Storage, LLC
|
| | Logan Airport Storage | | | | | N/A | | | | N/A | | | N/A | | | | | (73,958) | | |
CH Mesa Holdings, LLC
|
| |
Downtown Mesa Commercial Portfolio
|
| | | | N/A | | | | N/A | | | N/A | | | | | (60,319) | | |
J-25 Johnstown Holdings, LLC
|
| | The Villages at Johnstown | | | | | N/A | | | | N/A | | | N/A | | | | | 666,952 | | |
The Roosevelt I, LLC
|
| | The Roosevelt | | | | | 922,400 | | | | October 2016 | | |
December 2018
|
| | | | (209,406) | | |
Circle Lofts, LLC
|
| | Eclipse | | | | | 7,200,000 | | | | January 2017 | | | July 2019 | | | | | (500) | | |
Saddleback Ranch, LLC
|
| | Saddleback Ranch | | | | | N/A | | | | N/A | | | N/A | | | | $ | — | | |
Name
|
| |
Position
|
| |
Age
|
|
Executive Officers: | | | | ||||
John C. “Chris” Loeffler II | | | Chief Executive Officer and Chairman of the Board | | |
34
|
|
Jennifer Schrader | | | President & Chief Operating Officer and Director | | |
36
|
|
Jade Leung | | | Chief Financial Officer | | |
44
|
|
Roy Bade | | | Executive Vice President Construction and Development | | |
56
|
|
Directors: | | | | ||||
John C. “Chris” Loeffler II | | | Chief Executive Officer and Chairman of the Board | | |
34
|
|
Jennifer Schrader | | | President & Chief Operating Officer and Director | | |
36
|
|
William J. Gerber | | | Director, Chairman of Governance Committee | | |
61
|
|
Christopher Pair Garza | | | Director, Chairman of Compensation Committee | | |
64
|
|
Michael Trzupek | | | Director, Chairman of Audit Committee | | |
48
|
|
Name
|
| |
Position
|
| |
Salary
($) |
| |
Bonus
($)(a) |
| |
All Other
Compensation ($)(b)(c) |
| |
Total
($) |
| ||||||||||||
Chris Loeffler | | | Chief Executive Officer/Co Founder | | | | | 194,826 | | | | | | 84,835 | | | | | | 100,422 | | | | | | 380,083 | | |
Jennifer Schrader
|
| | President and Chief Operating Officer/Co Founder | | | | | 205,925 | | | | | | 101,296 | | | | | | 82,300 | | | | | | 389,521 | | |
Jade Leung | | | Chief Financial Officer | | | | | 172,066 | | | | | | 81,255 | | | | | | 7,043 | | | | | | 260,364 | | |
Roy Bade | | | Executive Vice President Construction and Development | | | | | 172,066 | | | | | | 24,255 | | | | | | 10,676 | | | | | | 206,998 | | |
Name
|
| |
Grant
Date |
| |
Units
Granted |
| |
Grant Date
Fair Value |
| |||||||||
Jade Leung
|
| | | | 6/30/2018 | | | | | | 650,000* | | | | | $ | 476,450 | | |
Roy Bade
|
| | | | 6/30/2018 | | | | | | 750,000* | | | | | $ | 549,750 | | |
| | |
Shares Beneficially Owned
Prior to Offering(1) |
| | | | | | | |
Shares Beneficially Owned After Offering
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | |
Class A
Common Stock |
| |
Class B
Common Stock |
| |
% Total
Voting Power(2) |
| |
Common
Stock Offered for Sale(3) |
| |
Class A
Common Stock(4) |
| |
Class B
Common Stock(4) |
| |
% Total
Voting Power(2)(4) |
| |||||||||||||||||||||||||||||||||||||||||||||
Name of Beneficial Owner
|
| |
Shares
|
| |
%
|
| |
Shares
|
| |
%
|
| | | | | | | | | | | | | |
Shares
|
| |
%
|
| |
Shares
|
| |
%
|
| | |||||||||||||||||||||||||||||
Named Executive Officers and Directors
|
| | | | | | | | | | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Jennifer Schrader(3)(5)
|
| | | | — | | | | | | — | | | | | | 6,239,846 | | | | | | 50.02% | | | | | | 44.46% | | | | | | [ ] | | | | | | — | | | | | | — | | | | | | [ ](3) | | | | | | [ ]% | | | | | | [ ]% | | |
John C. Loeffler, II(3)
|
| | | | — | | | | | | — | | | | | | 6,234,846 | | | | | | 49.98% | | | | | | 44.43% | | | | | | [ ] | | | | | | — | | | | | | — | | | | | | [ ](3) | | | | | | [ ]% | | | | | | [ ]% | | |
Roy Bade
|
| | | | 593,750(6) | | | | | | 2.13% | | | | | | — | | | | | | — | | | | | | 1.00% | | | | | | [ ] | | | | | | [ ](6) | | | | | | [ ]% | | | | | | — | | | | | | — | | | | | | [ ]% | | |
Jade Leung
|
| | | | 514,583(6) | | | | | | 1.85% | | | | | | — | | | | | | — | | | | | | 1.00% | | | | | | [ ] | | | | | | [ ](6) | | | | | | [ ]% | | | | | | — | | | | | | — | | | | | | [ ]% | | |
William J. Gerber
|
| | | | 25,000 | | | | | | [ ]% | | | | | | — | | | | | | — | | | | | | 1.00% | | | | | | [ ] | | | | | | [ ] | | | | | | [ ]% | | | | | | — | | | | | | — | | | | | | [ ]% | | |
Christopher Pair Garza
|
| | | | 25,000 | | | | | | [ ]% | | | | | | — | | | | | | — | | | | | | 1.00% | | | | | | [ ] | | | | | | [ ] | | | | | | [ ]% | | | | | | — | | | | | | — | | | | | | [ ]% | | |
Michael Trzupek
|
| | | | 25,000 | | | | | | [ ]% | | | | | | — | | | | | | — | | | | | | 1.00% | | | | | | [ ] | | | | | | [ ] | | | | | | [ ]% | | | | | | — | | | | | | — | | | | | | [ ]% | | |
Directors and Executive Officers as
a Group (7 Persons)(7) |
| | | | 13,658,025 | | | | | | 49.62% | | | | | | | | | | | | | | | | | | 93.89% | | | | | | [ ] | | | | | | [ ] | | | | | | [ ]% | | | | | | [ ] | | | | | | [ ]% | | | | | | [ ]% | | |
5% Beneficial Owners: Donnie Schrader(5)(8)
|
| | | | 6,221,846 | | | | | | 22.76% | | | | | | — | | | | | | — | | | | | | 4.43% | | | | | | [ ] | | | | | | [ ] | | | | | | [ ]% | | | | | | — | | | | | | — | | | | | | [ ]% | | |
| | | | | F-2 | | | |
| Financial Statements | | | | | | | |
| | | | | F-3 | | | |
| | | | | F-4 | | | |
| | | | | F-5 | | | |
| | | | | F-6 – F-7 | | | |
| | | | | F-8 – F-53 | | |
| | |
December 31,
|
| |||||||||
| | |
2018
|
| |
2017
|
| ||||||
Assets | | | | | | | | | | | | | |
Real estate investments
|
| | | | | | | | | | | | |
Land and land improvements
|
| | | $ | 25,580,075 | | | | | $ | 20,261,083 | | |
Buildings and building improvements
|
| | | | 110,400,125 | | | | | | 91,537,069 | | |
Furniture, fixtures, and equipment
|
| | | | 23,745,343 | | | | | | 19,728,145 | | |
Real estate assets under construction
|
| | | | 1,154,966 | | | | | | 13,523,716 | | |
Real estate assets held for sale
|
| | | | 11,062,577 | | | | | | 1,424,335 | | |
Total real estate investments, at cost
|
| | | | 171,943,086 | | | | | | 146,474,348 | | |
Accumulated depreciation
|
| | | | (17,972,715) | | | | | | (13,764,437) | | |
Total real estate investments, net
|
| | | | 153,970,371 | | | | | | 132,709,911 | | |
Cash
|
| | | | 5,954,795 | | | | | | 6,106,778 | | |
Restricted cash
|
| | | | 4,873,295 | | | | | | 6,656,826 | | |
Accounts receivable, net
|
| | | | 1,311,404 | | | | | | 1,041,984 | | |
Other receivables
|
| | | | 88,542 | | | | | | 89,505 | | |
Notes receivable – related parties
|
| | | | 127,978 | | | | | | 277,978 | | |
Due from related parties
|
| | | | 2,357,796 | | | | | | 3,021,545 | | |
Prepaid and other assets
|
| | | | 3,450,616 | | | | | | 2,874,681 | | |
Total Assets
|
| | | $ | 172,134,797 | | | | | $ | 152,779,208 | | |
Liabilities, Mezzanine Equity, and Stockholders’ (Deficit) Equity | | | | | | | | | | | | | |
Notes payable (net of deferred financing costs of $2,814,976 and $1,949,834 at December 31, 2018 and 2017, respectively)
|
| | | | 122,741,088 | | | | | | 100,946,351 | | |
Notes payable – related parties
|
| | | | 10,643,723 | | | | | | 9,126,978 | | |
Accounts payable
|
| | | | 1,890,981 | | | | | | 4,276,388 | | |
Accrued interest
|
| | | | 1,308,828 | | | | | | 2,302,028 | | |
Accrued share-based payments
|
| | | | 1,381,526 | | | | | | 1,381,526 | | |
Buyback obligation
|
| | | | 13,577,152 | | | | | | — | | |
Accrued expenses
|
| | | | 3,996,216 | | | | | | 3,395,620 | | |
Due to related parties
|
| | | | 2,261,919 | | | | | | 2,009,115 | | |
Advance key money, net
|
| | | | 1,200,000 | | | | | | 1,275,000 | | |
Above-market ground lease, net
|
| | | | 3,887,665 | | | | | | 4,013,072 | | |
Other liabilities
|
| | | | 1,782,680 | | | | | | 1,580,550 | | |
Total Liabilities
|
| | | | 164,671,778 | | | | | | 130,306,628 | | |
Commitments and contingencies | | | | | | | | | | | | | |
Mezzanine equity – Series A convertible, mandatorily redeemable preferred stock, $0.001 par value; 2,564,103 shares authorized and 1,657,396 and 1,386,229 issued and outstanding at December 31, 2018 and 2017, respectively
|
| | | | 3,841,934 | | | | | | 3,180,480 | | |
Stockholders’ (Deficit) Equity | | | | | | | | | | | | | |
Common stock, $0.001 par value; 90,000,000 shares authorized, 27,974,212 and 27,956,212 shares issued and outstanding, respectively at December 31, 2018 and 26,797,477 shares issued and outstanding at December 31, 2017
|
| | | | 27,974 | | | | | | 26,797 | | |
Paid-in capital
|
| | | | 14,172,135 | | | | | | 10,676,358 | | |
Less treasury stock, at cost, 18,000 shares repurchased and 6,221,846 forward repurchase shares
|
| | | | (13,625,752) | | | | | | — | | |
Accumulated deficit
|
| | | | (24,665,638) | | | | | | (21,223,501) | | |
Stockholders’ deficit attributable to CaliberCos Inc.
|
| | | | (24,091,281) | | | | | | (10,520,346) | | |
Stockholders’ equity attributable to noncontrolling interests
|
| | | | 27,712,366 | | | | | | 29,812,446 | | |
Total Stockholders’ Equity
|
| | | | 3,621,085 | | | | | | 19,292,100 | | |
Total Liabilities, Mezzanine Equity, and Stockholders’ (Deficit)
Equity |
| | |
$
|
172,134,797
|
| | | |
$
|
152,779,208
|
| |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2018
|
| |
2017
|
| ||||||
Revenues | | | | | | | | | | | | | |
Hospitality
|
| | | $ | 49,341,339 | | | | | $ | 44,062,107 | | |
Construction and development
|
| | | | 4,630,343 | | | | | | 4,615,982 | | |
Real estate sales
|
| | | | 6,289,200 | | | | | | 7,877,470 | | |
Rental income
|
| | | | 4,968,010 | | | | | | 4,972,803 | | |
Fund management
|
| | | | 4,666,853 | | | | | | 1,661,830 | | |
Property management
|
| | | | 325,113 | | | | | | 485,730 | | |
Brokerage
|
| | | | 303,975 | | | | | | 314,647 | | |
Other
|
| | | | 147,307 | | | | | | 428,567 | | |
Total revenues
|
| | | | 70,672,140 | | | | | | 64,419,136 | | |
Expenses | | | | | | | | | | | | | |
Cost of sales – hospitality
|
| | | | 18,921,957 | | | | | | 16,727,488 | | |
Cost of sales – construction and development
|
| | | | 4,356,164 | | | | | | 4,105,738 | | |
Cost of sales – real estate
|
| | | | 5,327,572 | | | | | | 6,930,938 | | |
Cost of sales – brokerage
|
| | | | 106,572 | | | | | | 54,585 | | |
Operating costs
|
| | | | 19,626,511 | | | | | | 14,432,049 | | |
General and administrative
|
| | | | 5,508,173 | | | | | | 6,871,151 | | |
Marketing and advertising
|
| | | | 4,356,915 | | | | | | 3,530,813 | | |
Franchise fees
|
| | | | 3,563,149 | | | | | | 3,032,198 | | |
Management fees
|
| | | | 1,952,714 | | | | | | 1,621,222 | | |
Depreciation
|
| | | | 7,034,166 | | | | | | 5,564,129 | | |
Impairment
|
| | | | 839,250 | | | | | | 460,906 | | |
Total expenses
|
| | | | 71,593,143 | | | | | | 63,331,217 | | |
Operating (Loss) Income
|
| | | | (921,003) | | | | | | 1,087,919 | | |
Other (Income) Expenses | | | | | | | | | | | | | |
Other expenses, net
|
| | | | 306,530 | | | | | | 638,207 | | |
Interest income
|
| | | | (41,650) | | | | | | (24,261) | | |
Gain on disposition of real estate
|
| | | | — | | | | | | (1,478,865) | | |
Interest expense
|
| | | | 11,887,742 | | | | | | 10,458,422 | | |
Total other expenses, net
|
| | | | 12,152,622 | | | | | | 9,593,503 | | |
Net Loss Before Income Taxes
|
| | | | (13,073,625) | | | | | | (8,505,584) | | |
Provision for (benefit from) income taxes
|
| | | | — | | | | | | — | | |
Net Loss
|
| | | | (13,073,625) | | | | | | (8,505,584) | | |
Net loss attributable to noncontrolling interests
|
| | | | 10,080,924 | | | | | | 5,802,121 | | |
Net Loss Attributable to CaliberCos Inc.
|
| | | $ | (2,992,701) | | | | | $ | (2,703,463) | | |
Basic and diluted net loss per share attributable to common stockholders
|
| | | $ | (0.13) | | | | | $ | (0.12) | | |
Weighted-average basic and diluted common shares outstanding
|
| | | | 27,405,332 | | | | | | 25,299,392 | | |
|
| | | | | |
| | |
CaliberCos Inc.
|
| |
Noncontrolling
Interests |
| |
Total
Stockholders’ Equity |
| |||||||||||||||||||||||||||||||||
| | |
Common Stock
|
| |
Paid in
Capital |
| |
Treasury
Stock |
| |
Accumulated
Deficit |
| ||||||||||||||||||||||||||||||
| | |
Shares
|
| |
Par
Value |
| ||||||||||||||||||||||||||||||||||||
Balances at January 1, 2017
|
| | | | 24,064,751 | | | | | $ | 24,065 | | | | | $ | 7,018,415 | | | | | $ | — | | | | | $ | (18,306,345) | | | | | $ | 30,999,082 | | | | | $ | 19,735,217 | | |
Issuance of common stock
|
| | | | 540,157 | | | | | | 540 | | | | | | 972,569 | | | | | | — | | | | | | — | | | | | | — | | | | | | 973,109 | | |
Settlement of share-based payments
|
| | | | 1,325,324 | | | | | | 1,325 | | | | | | 1,125,200 | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,126,525 | | |
Conversion of notes payable
to common stock |
| | | | 867,245 | | | | | | 867 | | | | | | 1,560,174 | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,561,041 | | |
Distribution to preferred stock holders
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (197,825) | | | | | | — | | | | | | (197,825) | | |
Accretion of mezzanine equity value
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (15,868) | | | | | | — | | | | | | (15,868) | | |
Contributions from noncontrolling interest holders
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 12,015,046 | | | | | | 12,015,046 | | |
Redemptions of noncontrolling interest
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (5,715,524) | | | | | | (5,715,524) | | |
Distributions to noncontrolling interest holders
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,684,037) | | | | | | (1,684,037) | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (2,703,463) | | | | | | (5,802,121) | | | | | | (8,505,584) | | |
Balances at December 31, 2017
|
| | | | 26,797,477 | | | | | | 26,797 | | | | | | 10,676,358 | | | | | | — | | | | | | (21,223,501) | | | | | | 29,812,446 | | | | | | 19,292,100 | | |
Consolidation of VIEs
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 6,614,319 | | | | | | 6,614,319 | | |
Issuance of common stock
|
| | | | 1,029,058 | | | | | | 1,029 | | | | | | 1,865,171 | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,866,200 | | |
Settlement of obligations
|
| | | | 48,840 | | | | | | 48 | | | | | | 82,980 | | | | | | — | | | | | | — | | | | | | — | | | | | | 83,028 | | |
Conversion of
noncontrolling interest to common stock |
| | | | 30,619 | | | | | | 31 | | | | | | 55,910 | | | | | | — | | | | | | — | | | | | | (55,941) | | | | | | — | | |
Conversion of notes payable
to common stock |
| | | | 97,630 | | | | | | 98 | | | | | | 183,805 | | | | | | — | | | | | | — | | | | | | — | | | | | | 183,903 | | |
Repurchases and retirement
of common stock |
| | | | (29,412) | | | | | | (29) | | | | | | (24,971) | | | | | | | | | | | | — | | | | | | — | | | | | | (25,000) | | |
Treasury stock acquired – buyback obligation
|
| | | | — | | | | | | — | | | | | | — | | | | | | (13,625,752) | | | | | | — | | | | | | — | | | | | | (13,625,752) | | |
Equity based compensation expense
|
| | | | — | | | | | | — | | | | | | 1,332,882 | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,332,882 | | |
Distribution to common stock holders
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (7,601) | | | | | | — | | | | | | (7,601) | | |
Distribution to preferred stock holders
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (390,508) | | | | | | — | | | | | | (390,508) | | |
Accretion of mezzanine equity value
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (51,327) | | | | | | — | | | | | | (51,327) | | |
Contributions from noncontrolling interest holders
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 7,904,323 | | | | | | 7,904,323 | | |
Redemptions of noncontrolling interest
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (4,346,024) | | | | | | (4,346,024) | | |
Distributions to noncontrolling interest holders
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (2,135,833) | | | | | | (2,135,833) | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (2,992,701) | | | | | | (10,080,924) | | | | | | (13,073,625) | | |
Balances at December 31, 2018
|
| | | | 27,974,212 | | | | | $ | 27,974 | | | | | $ | 14,172,135 | | | | | $ | (13,625,752) | | | | | $ | (24,665,638) | | | | | $ | 27,712,366 | | | | | $ | 3,621,085 | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2018
|
| |
2017
|
| ||||||
Cash Flows From Operating Activities | | | | | | | | | | | | | |
Net loss
|
| | | $ | (13,073,625) | | | | | $ | (8,505,584) | | |
Adjustments to reconcile net loss to net cash provided by operating activities:
|
| | | | | | | | | | | | |
Depreciation
|
| | | | 7,034,166 | | | | | | 5,564,129 | | |
Amortization of deferred financing costs
|
| | | | 1,991,663 | | | | | | 2,305,174 | | |
Amortization of advance key money
|
| | | | (75,000) | | | | | | (75,000) | | |
Amortization of above-market ground lease
|
| | | | (125,407) | | | | | | (125,409) | | |
Impairment
|
| | | | 839,250 | | | | | | 460,906 | | |
Equity based compensation
|
| | | | 1,332,882 | | | | | | — | | |
Loss on retirement of real estate assets
|
| | | | 472,878 | | | | | | — | | |
Loss on equity method investment
|
| | | | — | | | | | | 67,000 | | |
Loss on extinguishment of debt
|
| | | | — | | | | | | 203,556 | | |
Gain on disposition of real estate
|
| | | | — | | | | | | (1,478,865) | | |
Changes in operating assets and liabilities:
|
| | | | | | | | | | | | |
Real estate assets held for sale
|
| | | | 4,786,172 | | | | | | 5,186,228 | | |
Accounts receivable, net
|
| | | | (269,420) | | | | | | 123,128 | | |
Other receivables
|
| | | | 963 | | | | | | 849,269 | | |
Due from related parties
|
| | | | 663,749 | | | | | | (1,866,271) | | |
Prepaid and other assets
|
| | | | 177,593 | | | | | | 168,609 | | |
Accounts payable
|
| | | | (229,445) | | | | | | 222,600 | | |
Accrued interest
|
| | | | (993,200) | | | | | | (473,861) | | |
Accrued expenses
|
| | | | 1,240,596 | | | | | | 56,087 | | |
Due to related parties
|
| | | | (920,818) | | | | | | 481,133 | | |
Other liabilities
|
| | | | 221,956 | | | | | | 554,396 | | |
Net cash provided by operating activities
|
| | | | 3,074,953 | | | | | | 3,717,225 | | |
Cash Flows From Investing Activities | | | | | | | | | | | | | |
Acquisitions of real estate assets
|
| | | | (20,053,510) | | | | | | — | | |
Investments in real estate assets
|
| | | | (8,064,970) | | | | | | (16,635,780) | | |
Proceeds from disposition of real estate
|
| | | | — | | | | | | 3,015,000 | | |
Proceeds from the settlement of property-related insurance claims
|
| | | | 982,714 | | | | | | 827,646 | | |
Funding of notes receivable – related parties
|
| | | | (100,000) | | | | | | (250,000) | | |
Payment received on notes receivable – related parties
|
| | | | 250,000 | | | | | | 130,272 | | |
Net cash used in investing activities
|
| | | $ | (26,985,766) | | | | | $ | (12,912,862) | | |
Cash Flows From Financing Activities | | | | | | | | | | | | | |
Capital lease payments
|
| | | | (19,826) | | | | | | (13,308) | | |
Payment of deferred financing costs
|
| | | | (3,146,805) | | | | | | (1,503,331) | | |
Payment of loan extinguishment fees
|
| | | | — | | | | | | (666,994) | | |
Proceeds from notes payable
|
| | | | 94,878,271 | | | | | | 43,088,783 | | |
Repayments of notes payable
|
| | | | (72,020,259) | | | | | | (36,656,105) | | |
Proceeds from notes payable – related parties
|
| | | | 4,438,544 | | | | | | 762,000 | | |
Repayments of notes payable – related parties
|
| | | | (5,272,494) | | | | | | (5,501,892) | | |
Proceeds from the issuance of preferred stock
|
| | | | 595,897 | | | | | | 573,617 | | |
Proceeds from the issuance of common stock
|
| | | | 1,921,214 | | | | | | 973,109 | | |
Repurchases and retirement of common stock
|
| | | | (25,000) | | | | | | — | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2018
|
| |
2017
|
| ||||||
Payments of treasury stock – buyback obligation
|
| | | $ | (48,600) | | | | | $ | — | | |
Distributions to preferred stockholders
|
| | | | (390,508) | | | | | | (197,825) | | |
Distributions to common stockholders
|
| | | | (7,601) | | | | | | — | | |
Contributions from noncontrolling interest holders
|
| | | | 7,904,323 | | | | | | 12,015,046 | | |
Redemptions of noncontrolling interests
|
| | | | (4,596,024) | | | | | | (5,465,524) | | |
Distributions to noncontrolling interest holders
|
| | | | (2,235,833) | | | | | | (1,584,037) | | |
Net cash provided by financing activities
|
| | | | 21,975,299 | | | | | | 5,823,539 | | |
Net Decrease in Cash and Restricted Cash
|
| | | | (1,935,514) | | | | | | (3,372,098) | | |
Cash and Restricted Cash at Beginning of Year
|
| | | | 12,763,604 | | | | | | 16,135,702 | | |
Cash and Restricted Cash at End of Year
|
| | | $ | 10,828,090 | | | | | $ | 12,763,604 | | |
Reconciliation of Cash and Restricted Cash | | | | | | | | | | | | | |
Cash at beginning of year
|
| | | | 6,106,778 | | | | | | 3,159,333 | | |
Restricted cash at beginning of year
|
| | | | 6,656,826 | | | | | | 12,976,369 | | |
Cash and restricted cash at beginning of year
|
| | | | 12,763,604 | | | | | | 16,135,702 | | |
Cash at end of year
|
| | | | 5,954,795 | | | | | | 6,106,778 | | |
Restricted cash at end of year
|
| | | | 4,873,295 | | | | | | 6,656,826 | | |
Cash and restricted cash at end of year
|
| | | $ | 10,828,090 | | | | | $ | 12,763,604 | | |
|
Building and building improvements
|
| | 15 – 40 years | |
|
Furniture, fixtures, and equipment
|
| | 3 – 7 years | |
| | |
2018
|
| |||
Assets | | | | | | | |
Cash
|
| | | $ | 1,055,832 | | |
Acquisition deposits
|
| | | | 7,530,000 | | |
Prepaid and other assets
|
| | | | 753,528 | | |
Total Assets
|
| | | $ | 9,339,360 | | |
Liabilities and Noncontrolling Interests | | | | | | | |
Notes payable – related parties
|
| | | $ | 2,350,695 | | |
Accounts payable
|
| | | | 110,927 | | |
Due to related parties
|
| | | | 263,419 | | |
Total Liabilities
|
| | | | 2,725,041 | | |
Noncontrolling interests
|
| | | | 6,614,319 | | |
Total Liabilities and Noncontrolling Interests
|
| | | $ | 9,339,360 | | |
| | |
2018
|
| |
2017
|
| ||||||
Assets | | | | ||||||||||
Real estate investments, net
|
| | | $ | 149,173,326 | | | | | $ | 122,458,216 | | |
Cash
|
| | | | 3,455,205 | | | | | | 3,828,070 | | |
Restricted cash
|
| | | | 4,866,835 | | | | | | 6,620,240 | | |
Accounts receivable, net
|
| | | | 1,224,528 | | | | | | 982,867 | | |
Notes receivable – related parties
|
| | | | 127,978 | | | | | | 277,978 | | |
Due from related parties
|
| | | | 420,244 | | | | | | 420,583 | | |
Prepaid and other assets
|
| | | | 2,688,321 | | | | | | 2,520,623 | | |
Total Assets
|
| | | $ | 161,956,437 | | | | | $ | 137,108,577 | | |
| | |
2018
|
| |
2017
|
| ||||||
Liabilities | | | | ||||||||||
Notes payable, net of deferred financing costs
|
| | | $ | 115,035,544 | | | | | $ | 92,088,579 | | |
Notes payable – related parties
|
| | | | 5,114,413 | | | | | | 254,978 | | |
Accounts payable
|
| | | | 1,315,086 | | | | | | 1,390,652 | | |
Accrued interest
|
| | | | 568,858 | | | | | | 664,322 | | |
Accrued expenses
|
| | | | 2,976,816 | | | | | | 2,932,359 | | |
Due to related parties
|
| | | | 551,803 | | | | | | 340,969 | | |
Advance key money, net
|
| | | | 1,200,000 | | | | | | 1,275,000 | | |
Above-market ground lease, net
|
| | | | 3,887,665 | | | | | | 4,013,072 | | |
Other liabilities
|
| | | | 1,333,885 | | | | | | 1,187,578 | | |
Total Liabilities
|
| | | $ | 131,984,070 | | | | | $ | 104,147,509 | | |
| | |
2018
|
| |||
Real estate investments, at cost: | | | | | | | |
Land
|
| | | $ | 4,559,776 | | |
Building
|
| | | | 22,393,996 | | |
Furniture, Fixtures & Equipment
|
| | | | 1,685,570 | | |
Total purchase price of assets acquired
|
| | | $ | 28,639,342 | | |
| | |
2018
|
| |
2017
|
| ||||||
Prepaid expenses
|
| | | $ | 1,075,754 | | | | | $ | 1,044,609 | | |
Deposits
|
| | | | 779,705 | | | | | | 716,150 | | |
Costs in excess of billings
|
| | | | 3,236 | | | | | | 46,034 | | |
Deferred franchise fees, net
|
| | | | 557,066 | | | | | | 427,952 | | |
Intangibles, net
|
| | | | 263,061 | | | | | | 286,802 | | |
Investments in unconsolidated entities
|
| | | | 570,351 | | | | | | 174,895 | | |
Inventory
|
| | | | 201,443 | | | | | | 178,239 | | |
Total prepaid and other assets
|
| | | $ | 3,450,616 | | | | | $ | 2,874,681 | | |
| | |
2018
|
| |
2017
|
| ||||||
Sales tax payable
|
| | | $ | 545,387 | | | | | $ | 599,868 | | |
Deposits
|
| | | | 387,319 | | | | | | 287,688 | | |
Deferred revenue
|
| | | | 52,827 | | | | | | 41,062 | | |
Tenant improvement allowance
|
| | | | 32,047 | | | | | | — | | |
Capital leases
|
| | | | 315,104 | | | | | | — | | |
Redemption/distribution payable
|
| | | | — | | | | | | 350,000 | | |
Deferred rent liability
|
| | | | 338,521 | | | | | | — | | |
Billings in excess of costs
|
| | | | 89,790 | | | | | | 137,292 | | |
Other
|
| | | | 21,685 | | | | | | 164,640 | | |
Total other liabilities
|
| | | $ | 1,782,680 | | | | | $ | 1,580,550 | | |
| | |
2018
|
| |
2017
|
| |
Interest
Rate |
| |
Original/
Extended Maturity |
| ||||||
Notes Payable | | | | | | | | | | | | | | | | | | | |
Real Estate Loans
|
| | | | | | | | | | | | | | | | | | |
Hampton Inn & Suites Hotel
|
| | | $ | 6,692,868 | | | | | $ | 6,868,347 | | | |
4.50%
|
| | July 2025 | |
Four Points by Marriott Hotel
|
| | | | 11,000,000 | | | | | | — | | | |
Variable
|
| | December 2021 | |
Holiday Inn Ocotillo Hotel
|
| | | | 9,250,000 | | | | | | — | | | |
Variable
|
| | August 2020 | |
Hilton Tucson East Hotel
|
| | | | — | | | | | | 12,730,000 | | | |
10.00%
|
| | June 2018 | |
Hilton Tucson East Hotel
|
| | | | 14,000,000 | | | | | | — | | | |
8.50%
|
| | June 2020 | |
Crowne Plaza Hotel
|
| | | | — | | | | | | 11,522,148 | | | |
Variable
|
| | September 2018 | |
Holiday Inn & Suites Hotel
|
| | | | — | | | | | | 15,375,000 | | | |
Variable
|
| | July 2018 | |
Hilton Phoenix Airport Hotel
|
| | | | — | | | | | | 29,000,000 | | | |
9.00%
|
| | September 2019 | |
Airport Hotel Portfolio
|
| | | | 56,470,000 | | | | | | — | | | |
Variable
|
| | October 2021 | |
GC Square Apartments
|
| | | | 11,000,000 | | | | | | 8,939,000 | | | |
Variable
|
| | November 2020 | |
Palms Apartment Portfolio
|
| | | | 9,437,652 | | | | | | 9,603,918 | | | |
5.28%
|
| | September 2026 | |
Single-family Home Loans
|
| | | | 400,000 | | | | | | 1,519,049 | | | |
10.50%
|
| | On demand | |
Unsecured Borrowing
|
| | | | — | | | | | | 947,500 | | | |
33.00%
|
| | Undefined | |
Total real estate loans
|
| | | | 118,250,520 | | | | | | 96,504,962 | | | | | | | | |
Corporate notes
|
| | | | 5,928,273 | | | | | | 6,383,273 | | | |
10.13% – 12.00%
|
| | January 2019 – December 2019 |
|
Convertible corporate notes
|
| | | | 1,377,271 | | | | | | — | | | |
8.25%
|
| | January 2019 – December 2019 |
|
Other
|
| | | | — | | | | | | 7,950 | | | |
6.00%
|
| | November 2018 | |
Total Notes Payable
|
| | | | 125,556,064 | | | | | | 102,896,185 | | | | | | | | |
Deferred financing costs, net
|
| | | | (2,814,976) | | | | | | (1,949,834) | | | | | | | | |
Total Notes Payable, Net
|
| | | $ | 122,741,088 | | | | | $ | 100,946,351 | | | | | | | | |
|
2019
|
| | | $ | 8,066,338 | | |
|
2020
|
| | | | 34,626,834 | | |
|
2021
|
| | | | 67,868,152 | | |
|
2022
|
| | | | 418,310 | | |
|
2023
|
| | | | 439,496 | | |
|
Thereafter
|
| | | | 14,136,934 | | |
| | | | | $ | 125,556,064 | | |
|
2019
|
| | | $ | — | | |
|
2020
|
| | | | 127,978 | | |
| | | | | $ | 127,978 | | |
|
2019
|
| | | $ | 5,136,861 | | |
|
2020
|
| | | | 3,854,801 | | |
|
2021
|
| | | | 802,061 | | |
|
2022
|
| | | | — | | |
|
2023
|
| | | | — | | |
|
Thereafter
|
| | | | 850,000 | | |
| | | | | $ | 10,643,723 | | |
| | |
2018
|
| |
2017
|
| ||||||
Current income tax (provision) benefit | | | | | | | | | | | | | |
Federal
|
| | | $ | — | | | | | $ | — | | |
State
|
| | | | — | | | | | | — | | |
Total
|
| | | | — | | | | | | — | | |
Deferred income tax (provision) benefit | | | | | | | | | | | | | |
Federal
|
| | | | (122,282) | | | | | | 912,114 | | |
State
|
| | | | (18,530) | | | | | | (220,823) | | |
Total
|
| | | | (140,812) | | | | | | 691,291 | | |
Adjustment to valuation allowance
|
| | | | 140,812 | | | | | | (691,291) | | |
Total income tax (provision) benefit
|
| | | $ | — | | | | | $ | — | | |
| | |
2018
|
| |
2017
|
| ||||||
U.S. federal statutory tax rate
|
| | | | 21.0% | | | | | | 34.0% | | |
Impact of U.S. Tax Reform
|
| | | | 3.8% | | | | | | -23.2% | | |
Income passed through to noncontrolling interest, federal tax
|
| | | | -16.2% | | | | | | -11.4% | | |
Income passed through to noncontrolling interest, state tax
|
| | | | -2.9% | | | | | | -1.1% | | |
Permanent differences, VIEs
|
| | | | -1.3% | | | | | | -9.6% | | |
State taxes, net of federal benefit
|
| | | | 0.0% | | | | | | 3.2% | | |
Prior period tax return true-up in current year
|
| | | | -3.2% | | | | | | 0.1% | | |
Nondeductible expenses
|
| | | | -0.1% | | | | | | -0.1% | | |
Change in valuation allowance
|
| | | | -1.1% | | | | | | 8.1% | | |
Effective income tax rate
|
| | | | 0.0% | | | | | | 0.0% | | |
| | |
2018
|
| |
2017
|
| ||||||
Deferred tax assets: | | | | | | | | | | | | | |
Net Operating Loss Carryforwards
|
| | | $ | 3,952,750 | | | | | $ | 2,621,856 | | |
Sec 362 Basis Step-up
|
| | | | 458,536 | | | | | | 959,854 | | |
Deferred Compensation
|
| | | | 503,301 | | | | | | 343,599 | | |
Fixed Assets
|
| | | | 380,549 | | | | | | 201,377 | | |
Other
|
| | | | 50,021 | | | | | | 4,018 | | |
Total
|
| | | | 5,345,157 | | | | | | 4,130,704 | | |
Deferred tax liabilities: | | | | | | | | | | | | | |
Passthrough Income/Loss from Partnerships
|
| | | | (1,212,475) | | | | | | (157,538) | | |
Other
|
| | | | (18,704) | | | | | | — | | |
Total
|
| | | | (1,231,179) | | | | | | (157,538) | | |
Valuation Allowance
|
| | | | (4,113,978) | | | | | | (3,973,166) | | |
Net deferred tax assets
|
| | | $ | — | | | | | $ | — | | |
| | |
2018
|
| |
2017
|
| ||||||
Valuation allowance at the beginning of the year
|
| | | $ | 3,973,166 | | | | | | 4,664,457 | | |
Changes in valuation allowance recorded during the year
|
| | | | 140,812 | | | | | | (691,291) | | |
Valuation allowance at the end of the year
|
| | | $ | 4,113,978 | | | | | $ | 3,973,166 | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2018
|
| |
2017
|
| ||||||
Supplemental Disclosure of Cash Flow Information | | | | | | | | | | | | | |
Cash paid for interest, net of capitalized interest of $444,539 and $1,132,898 for the years ended December 31, 2018 and 2017, respectively
|
| | | $ | 11,424,168 | | | | | $ | 7,908,233 | | |
Cash paid for income taxes
|
| | | $ | — | | | | | $ | — | | |
Supplemental Disclosures of Non-cash Investing and Financing Activities | | | | | | | | | | | | | |
Investments in real estate assets included in accounts payable
|
| | | $ | 303,038 | | | | | $ | 2,541,913 | | |
Investments in real estate assets included in due to related parties
|
| | | $ | 910,203 | | | | | $ | — | | |
Real estate investments reclassified to held for sale
|
| | | $ | 14,424,414 | | | | | $ | 1,417,376 | | |
Deferred financing costs included in accrued expenses
|
| | | $ | 220,000 | | | | | $ | 510,000 | | |
Exchange of common stock for professional services included in accounts
payable |
| | | $ | 28,014 | | | | | $ | — | | |
Conversion of noncontrolling interests to common stock
|
| | | $ | 55,941 | | | | | $ | — | | |
Conversion of notes payable to preferred stock
|
| | | $ | 14,230 | | | | | $ | 975,651 | | |
Conversion of notes payable to common stock
|
| | | $ | 183,903 | | | | | $ | 1,561,041 | | |
Buyback obligation
|
| | | $ | 13,577,152 | | | | | $ | — | | |
Settlement of share-based payments
|
| | | $ | — | | | | | $ | 1,126,525 | | |
Accrued redemption of noncontrolling interest
|
| | | $ | — | | | | | $ | 250,000 | | |
Accrued noncontrolling interest distribution
|
| | | $ | — | | | | | $ | 100,000 | | |
Accretion of mezzanine equity value
|
| | | $ | 51,327 | | | | | $ | 15,858 | | |
|
2019
|
| | | $ | 190,400 | | |
|
2020
|
| | | | 470,783 | | |
|
2021
|
| | | | 520,886 | | |
|
2022
|
| | | | 483,135 | | |
|
2023
|
| | | | 449,446 | | |
|
Thereafter
|
| | | | 1,098,960 | | |
| | | | | $ | 3,213,610 | | |
| | |
Lease
Payments |
| |
Intangible
Amortization |
| |
Net Lease
Expense |
| |||||||||
2019
|
| | | $ | 1,028,672 | | | | | $ | (125,409) | | | | | $ | 903,263 | | |
2020
|
| | | | 1,028,672 | | | | | | (125,409) | | | | | | 903,263 | | |
2021
|
| | | | 1,028,672 | | | | | | (125,409) | | | | | | 903,263 | | |
2022
|
| | | | 1,028,672 | | | | | | (125,409) | | | | | | 903,263 | | |
2023
|
| | | | 1,028,672 | | | | | | (125,409) | | | | | | 903,263 | | |
Thereafter
|
| | | | 29,487,016 | | | | | | (3,260,620) | | | | | | 26,226,396 | | |
| | | | $ | 34,630,376 | | | | | $ | (3,887,665) | | | | | $ | 30,742,711 | | |
|
2019
|
| | | $ | 260,412 | | |
|
2020
|
| | | | 276,725 | | |
|
2021
|
| | | | 316,793 | | |
|
2022
|
| | | | 314,175 | | |
|
2023
|
| | | | 311,578 | | |
|
Thereafter
|
| | | | 12,097,469 | | |
| | | | | $ | 13,577,152 | | |
| | |
Shares
|
| |||
December 31, 2016
|
| | | | 1,239,804 | | |
Warrants issued
|
| | | | — | | |
Warrants exercised
|
| | | | (30,617) | | |
December 31, 2017
|
| | | | 1,209,187 | | |
Warrants issued
|
| | | | — | | |
Warrants exercised
|
| | | | (663,803) | | |
Warrants expired
|
| | | | (333,489) | | |
December 31, 2018
|
| | | | 211,895 | | |
| | |
2018
|
| |
2017
|
| ||||||
Weighted-average remaining term (in months)
|
| | | | 15.52 | | | | | | 9.96 | | |
Weighted-average exercise price
|
| | | $ | 1.93 | | | | | $ | 1.87 | | |
| | |
2018
|
| |||
Expected term (in years)
|
| | | | 6.46 | | |
Volatility
|
| | | | 30.00% | | |
Dividend yield
|
| | | | 0.00% | | |
Risk-free rate
|
| | | | 3.05% | | |
Grant date fair value
|
| | | $ | 0.73 | | |
| | |
Stock
Options |
| |
Weighted-
Average Exercise Price |
| |
Weighted-
Average Remaining Contractual Term (Years) |
| |
Aggregate
Intrinsic Value |
| ||||||||||||
Outstanding, January 1, 2018
|
| | | | — | | | | | $ | — | | | | | | — | | | | | $ | — | | |
Granted
|
| | | | 3,113,597 | | | | | | 1.99 | | | | | | — | | | | | | — | | |
Forfeited
|
| | | | (108,773) | | | | | | 1.99 | | | | | | — | | | | | | — | | |
Outstanding, December 31, 2018
|
| | | | 3,004,824 | | | | | $ | 1.99 | | | | | | 6.46 | | | | | $ | 1,332,882 | | |
|
2019
|
| | | $ | — | | |
|
2020
|
| | | | 1,615,344 | | |
|
2021
|
| | | | 1,565,136 | | |
|
2022
|
| | | | 661,454 | | |
| | | | | $ | 3,841,934 | | |
| | |
2018
|
| |
2017
|
| ||||||
Net loss attributable to CaliberCos Inc.
|
| | | $ | (2,992,701) | | | | | $ | (2,703,463) | | |
Preferred stock dividends
|
| | | | (390,508) | | | | | | (197,825) | | |
Accretion of mezzanine equity value
|
| | | | (51,327) | | | | | | (15,868) | | |
Net loss attributable to common shareholders of CaliberCos Inc.
|
| | | $ | (3,434,536) | | | | | $ | (2,917,156) | | |
Weighted-average common shares outstanding
|
| | | | 27,405,332 | | | | | | 25,299,392 | | |
Basic and diluted net loss per share attributable to common shareholders
|
| | | $ | (0.13) | | | | | $ | (0.12) | | |
| | |
2018
|
| |
2017
|
| ||||||
Additional common shares, if warrants were exercised
|
| | | | 211,895 | | | | | | 1,209,187 | | |
Additional common shares, if preferred shares were converted
|
| | | | 2,071,745 | | | | | | 1,732,786 | | |
Additional common shares, if stock options were exercised
|
| | | | 3,004,824 | | | | | | — | | |
| | | | | 5,288,464 | | | | | | 2,941,973 | | |
| | |
December 31, 2018
|
| |
December 31, 2017
|
| ||||||||||||||||||
| | |
Carrying Value
|
| |
Fair Value
|
| |
Carrying Value
|
| |
Fair Value
|
| ||||||||||||
Notes Payable | | | | | | | | | | | | | | | | | | | | | | | | | |
Hampton Inn & Suites Hotel
|
| | | $ | 6,693,000 | | | | | $ | 5,806,000 | | | | | $ | 6,868,347 | | | | | $ | 6,601,000 | | |
Four Points by Marriott Hotel
|
| | | $ | 11,000,000 | | | | | $ | 10,770,000 | | | | | $ | — | | | | | $ | — | | |
Hilton Tucson East Hotel
|
| | | $ | 14,000,000 | | | | | $ | 14,000,000 | | | | | $ | 12,730,000 | | | | | $ | 12,611,000 | | |
Palms Apartment Portfolio
|
| | | $ | 9,438,000 | | | | | $ | 8,413,000 | | | | | $ | 9,603,918 | | | | | $ | 9,012,000 | | |
| | |
Year Ended December 31, 2018
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | |
Real Estate Services
|
| |
Real Estate Operations
|
| |
Eliminations
|
| |
CaliberCos Inc.
& Subsidiaries |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | |
Fund
Management |
| |
Construction &
Development |
| |
Property
Management |
| |
Real Estate
Brokerage |
| |
Total
|
| |
Hospitality
|
| |
Residential
|
| |
Commercial
|
| |
Diversified
|
| |
Total
|
| |
Non-
consolidated |
| |
Intercompany
|
| ||||||||||||||||||||||||||||||||||||||||||
Revenues | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Hospitality
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 50,866,351 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 50,866,351 | | | | | $ | (1,525,012) | | | | | $ | — | | | | | $ | 49,341,339 | | |
Construction and
development |
| | | | — | | | | | | 9,425,377 | | | | | | — | | | | | | — | | | | | | 9,425,377 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (4,795,034) | | | | | | 4,630,343 | | |
Real estate sales
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 6,289,200 | | | | | | — | | | | | | — | | | | | | 6,289,200 | | | | | | — | | | | | | — | | | | | | 6,289,200 | | |
Rental income
|
| | | | — | | | | | | — | | | | | | 854 | | | | | | — | | | | | | 854 | | | | | | — | | | | | | 8,204,318 | | | | | | 959,077 | | | | | | — | | | | | | 9,163,395 | | | | | | (4,196,239) | | | | | | — | | | | | | 4,968,010 | | |
Fund management
|
| | | | 8,381,850 | | | | | | — | | | | | | — | | | | | | — | | | | | | 8,381,850 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (3,714,997) | | | | | | 4,666,853 | | |
Property management
|
| | | | — | | | | | | — | | | | | | 476,381 | | | | | | — | | | | | | 476,381 | | | | | | — | | | | | | 60,804 | | | | | | — | | | | | | — | | | | | | 60,804 | | | | | | (23,442) | | | | | | (188,630) | | | | | | 325,113 | | |
Brokerage
|
| | | | — | | | | | | — | | | | | | — | | | | | | 1,892,329 | | | | | | 1,892,329 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,588,354) | | | | | | 303,975 | | |
Other
|
| | | | — | | | | | | 9,399 | | | | | | 87,475 | | | | | | — | | | | | | 96,874 | | | | | | — | | | | | | 75,675 | | | | | | — | | | | | | — | | | | | | 75,675 | | | | | | (25,242) | | | | | | — | | | | | | 147,307 | | |
Total revenues
|
| | | | 8,381,850 | | | | | | 9,434,776 | | | | | | 564,710 | | | | | | 1,892,329 | | | | | | 20,273,665 | | | | | | 50,866,351 | | | | | | 14,629,997 | | | | | | 959,077 | | | | | | — | | | | | | 66,455,425 | | | | | | (5,769,935) | | | | | | (10,287,015) | | | | | | 70,672,140 | | |
Expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of sales – hospitality
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 20,142,966 | | | | | | — | | | | | | — | | | | | | — | | | | | | 20,142,966 | | | | | | (1,221,009) | | | | | | — | | | | | | 18,921,957 | | |
Cost of sales – construction and
development |
| | | | — | | | | | | 8,824,608 | | | | | | — | | | | | | — | | | | | | 8,824,608 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (4,468,444) | | | | | | 4,356,164 | | |
Cost of sales – real estate
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 5,435,336 | | | | | | — | | | | | | — | | | | | | 5,435,336 | | | | | | — | | | | | | (107,764) | | | | | | 5,327,572 | | |
Cost of sales – brokerage
|
| | | | — | | | | | | — | | | | | | — | | | | | | 1,033,162 | | | | | | 1,033,162 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (926,590) | | | | | | 106,572 | | |
Operating costs
|
| | | | 6,403,829 | | | | | | 685,756 | | | | | | 195,699 | | | | | | 94,941 | | | | | | 7,380,225 | | | | | | 10,640,885 | | | | | | 4,361,579 | | | | | | 550,412 | | | | | | 636,854 | | | | | | 16,189,730 | | | | | | (3,472,544) | | | | | | (470,900) | | | | | | 19,626,511 | | |
General and administrative
|
| | | | 2,412,934 | | | | | | 41,492 | | | | | | 53,221 | | | | | | 110,390 | | | | | | 2,618,037 | | | | | | 3,496,893 | | | | | | 431,494 | | | | | | 292,237 | | | | | | 1,620,256 | | | | | | 5,840,880 | | | | | | (2,429,284) | | | | | | (521,460) | | | | | | 5,508,173 | | |
Marketing and advertising
|
| | | | 487,814 | | | | | | 2,275 | | | | | | 31 | | | | | | 715 | | | | | | 490,835 | | | | | | 3,897,823 | | | | | | 263,180 | | | | | | 40,726 | | | | | | 76,658 | | | | | | 4,278,387 | | | | | | (412,307) | | | | | | — | | | | | | 4,356,915 | | |
Franchise fees
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,580,300 | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,580,300 | | | | | | (17,151) | | | | | | — | | | | | | 3,563,149 | | |
Management fees
|
| | | | — | | | | | | — | | | | | | 1,075 | | | | | | — | | | | | | 1,075 | | | | | | 3,919,837 | | | | | | 1,072,093 | | | | | | 234,518 | | | | | | 1,039,150 | | | | | | 6,265,598 | | | | | | (2,203,909) | | | | | | (2,110,050) | | | | | | 1,952,714 | | |
Depreciation
|
| | | | 85,783 | | | | | | — | | | | | | — | | | | | | — | | | | | | 85,783 | | | | | | 6,662,663 | | | | | | 2,560,219 | | | | | | 270,841 | | | | | | — | | | | | | 9,493,723 | | | | | | (2,315,620) | | | | | | (229,720) | | | | | | 7,034,166 | | |
Impairment
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 839,250 | | | | | | — | | | | | | — | | | | | | 839,250 | | | | | | — | | | | | | — | | | | | | 839,250 | | |
Total expenses
|
| | | | 9,390,360 | | | | | | 9,554,131 | | | | | | 250,026 | | | | | | 1,239,208 | | | | | | 20,433,725 | | | | | | 52,341,367 | | | | | | 14,963,151 | | | | | | 1,388,734 | | | | | | 3,372,918 | | | | | | 72,066,170 | | | | | | (12,071,824) | | | | | | (8,834,928) | | | | | | 71,593,143 | | |
Operating Income (Loss)
|
| | | | (1,008,510) | | | | | | (119,355) | | | | | | 314,684 | | | | | | 653,121 | | | | | | (160,060) | | | | | | (1,475,016) | | | | | | (333,154) | | | | | | (429,657) | | | | | | (3,372,918) | | | | | | (5,610,745) | | | | | | 6,301,889 | | | | | | (1,452,087) | | | | | | (921,003) | | |
Other (Income) Expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Other (income) expenses, net
|
| | | | (28,571) | | | | | | — | | | | | | — | | | | | | 160 | | | | | | (28,411) | | | | | | 726,910 | | | | | | (179,867) | | | | | | 94,119 | | | | | | — | | | | | | 641,162 | | | | | | (36,374) | | | | | | (269,847) | | | | | | 306,530 | | |
Income from investments
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (2,383,746) | | | | | | (2,383,746) | | | | | | 2,383,746 | | | | | | — | | | | | | — | | |
Interest income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (35,301) | | | | | | (33,801) | | | | | | — | | | | | | (1,212,541) | | | | | | (1,281,643) | | | | | | 1,212,706 | | | | | | 27,287 | | | | | | (41,650) | | |
Gain on disposition of real estate
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (2,608,061) | | | | | | (699,222) | | | | | | — | | | | | | (3,307,283) | | | | | | 3,307,283 | | | | | | — | | | | | | — | | |
Interest expense
|
| | | | 939,314 | | | | | | — | | | | | | — | | | | | | 743 | | | | | | 940,057 | | | | | | 9,805,722 | | | | | | 2,618,240 | | | | | | 1,309,209 | | | | | | 2,419,432 | | | | | | 16,152,603 | | | | | | (5,088,708) | | | | | | (116,210) | | | | | | 11,887,742 | | |
Total other expenses, net
|
| | | | 910,743 | | | | | | — | | | | | | — | | | | | | 903 | | | | | | 911,646 | | | | | | 10,497,331 | | | | | | (203,489) | | | | | | 704,106 | | | | | | (1,176,855) | | | | | | 9,821,093 | | | | | | 1,778,653 | | | | | | (358,770) | | | | | | 12,152,622 | | |
Net Income (Loss)
|
| | | $ | (1,919,253) | | | | | $ | (119,355) | | | | | $ | 314,684 | | | | | $ | 652,218 | | | | | $ | (1,071,706) | | | | | $ | (11,972,347) | | | | | $ | (129,665) | | | | | $ | (1,133,763) | | | | | $ | (2,196,063) | | | | | $ | (15,431,838) | | | | | $ | 4,523,236 | | | | | $ | (1,093,317) | | | | | $ | (13,073,625) | | |
|
| | |
December 31, 2018
|
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Total real estate investments, at cost
|
| | | $ | 402,130 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 402,130 | | | | | $ | 154,462,298 | | | | | $ | 68,002,488 | | | | | $ | 23,966,138 | | | | | $ | 71,205 | | | | | $ | 246,502,129 | | | | | $ | 71,925,499 | | | | | $ | (146,886,672) | | | | | $ | 171,943,086 | | |
Total Assets
|
| | | $ | 6,235,856 | | | | | $ | 2,235,829 | | | | | $ | 39,161 | | | | | $ | 380,220 | | | | | $ | 8,891,066 | | | | | $ | 155,924,741 | | | | | $ | 65,489,911 | | | | | $ | 25,485,971 | | | | | $ | 74,962,350 | | | | | $ | 321,862,973 | | | | | $ | (143,528,943) | | | | | $ | (15,090,299) | | | | | $ | 172,134,797 | | |
|
| | |
Year Ended December 31, 2017
|
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| | |
Real Estate Services
|
| |
Real Estate Operations
|
| |
Eliminations
|
| |
CaliberCos Inc.
& Subsidiaries |
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| | |
Fund
Management |
| |
Construction &
Development |
| |
Property
Management |
| |
Real Estate
Brokerage |
| |
Total
|
| |
Hospitality
|
| |
Residential
|
| |
Commercial
|
| |
Diversified
|
| |
Total
|
| |
Non-
consolidated |
| |
Intercompany
|
| ||||||||||||||||||||||||||||||||||||||||||
Revenues | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Hospitality
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 46,283,522 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 46,283,522 | | | | | $ | (2,221,415) | | | | | $ | — | | | | | $ | 44,062,107 | | |
Construction and
development |
| | | | — | | | | | | 20,565,534 | | | | | | — | | | | | | — | | | | | | 20,565,534 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (15,949,552) | | | | | | 4,615,982 | | |
Real estate sales
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 7,877,470 | | | | | | — | | | | | | — | | | | | | 7,877,470 | | | | | | — | | | | | | — | | | | | | 7,877,470 | | |
Rental income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 7,613,774 | | | | | | 964,115 | | | | | | — | | | | | | 8,577,889 | | | | | | (3,605,086) | | | | | | — | | | | | | 4,972,803 | | |
Fund management
|
| | | | 3,997,765 | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,997,765 | | | | | | — | | | | | | — | | | | | | — | | | | | | 30,000 | | | | | | 30,000 | | | | | | (30,000) | | | | | | (1,907,368) | | | | | | 2,090,397 | | |
Property management
|
| | | | — | | | | | | — | | | | | | 700,870 | | | | | | — | | | | | | 700,870 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (215,140) | | | | | | 485,730 | | |
Brokerage
|
| | | | — | | | | | | — | | | | | | — | | | | | | 1,860,411 | | | | | | 1,860,411 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,545,764) | | | | | | 314,647 | | |
Total revenues
|
| | | | 3,997,765 | | | | | | 20,565,534 | | | | | | 700,870 | | | | | | 1,860,411 | | | | | | 27,124,580 | | | | | | 46,283,522 | | | | | | 15,491,244 | | | | | | 964,115 | | | | | | 30,000 | | | | | | 62,768,881 | | | | | | (5,856,501) | | | | | | (19,617,824) | | | | | | 64,419,136 | | |
Expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of sales – hospitality
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 18,185,547 | | | | | | — | | | | | | — | | | | | | — | | | | | | 18,185,547 | | | | | | (1,458,059) | | | | | | — | | | | | | 16,727,488 | | |
Cost of sales – construction and
development |
| | | | — | | | | | | 18,622,858 | | | | | | — | | | | | | — | | | | | | 18,622,858 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (14,517,120) | | | | | | 4,105,738 | | |
Cost of sales – real estate
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 7,085,829 | | | | | | — | | | | | | — | | | | | | 7,085,829 | | | | | | — | | | | | | (154,891) | | | | | | 6,930,938 | | |
Cost of sales – brokerage
|
| | | | — | | | | | | — | | | | | | — | | | | | | 1,445,458 | | | | | | 1,445,458 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,390,873) | | | | | | 54,585 | | |
Operating costs
|
| | | | 3,309,369 | | | | | | 543,337 | | | | | | 677,813 | | | | | | 15,748 | | | | | | 4,546,267 | | | | | | 7,545,355 | | | | | | 4,218,934 | | | | | | 744,332 | | | | | | 36,086 | | | | | | 12,544,707 | | | | | | (2,632,789) | | | | | | (26,136) | | | | | | 14,432,049 | | |
General and administrative
|
| | | | 2,202,841 | | | | | | 35,609 | | | | | | 87,483 | | | | | | 124,385 | | | | | | 2,450,318 | | | | | | 5,110,525 | | | | | | 609,122 | | | | | | 30,448 | | | | | | 796,882 | | | | | | 6,546,977 | | | | | | (1,645,146) | | | | | | (480,998) | | | | | | 6,871,151 | | |
Marketing and advertising
|
| | | | 272,402 | | | | | | 8,904 | | | | | | — | | | | | | 60,003 | | | | | | 341,309 | | | | | | 3,398,913 | | | | | | 158,075 | | | | | | 60,895 | | | | | | 70,006 | | | | | | 3,687,889 | | | | | | (498,385) | | | | | | — | | | | | | 3,530,813 | | |
Franchise fees
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,067,828 | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,067,828 | | | | | | (35,630) | | | | | | — | | | | | | 3,032,198 | | |
Management fees
|
| | | | — | | | | | | — | | | | | | 880 | | | | | | — | | | | | | 880 | | | | | | 2,498,623 | | | | | | 728,129 | | | | | | 264,604 | | | | | | 771,718 | | | | | | 4,263,074 | | | | | | (1,292,351) | | | | | | (1,350,381) | | | | | | 1,621,222 | | |
Depreciation
|
| | | | 98,365 | | | | | | — | | | | | | — | | | | | | — | | | | | | 98,365 | | | | | | 5,518,624 | | | | | | 2,157,223 | | | | | | 440,375 | | | | | | — | | | | | | 8,116,222 | | | | | | (2,481,943) | | | | | | (168,515) | | | | | | 5,564,129 | | |
Impairment
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 460,906 | | | | | | — | | | | | | — | | | | | | 460,906 | | | | | | — | | | | | | — | | | | | | 460,906 | | |
Total expenses
|
| | | | 5,882,977 | | | | | | 19,210,708 | | | | | | 766,176 | | | | | | 1,645,594 | | | | | | 27,505,455 | | | | | | 45,325,415 | | | | | | 15,418,218 | | | | | | 1,540,654 | | | | | | 1,674,692 | | | | | | 63,958,979 | | | | | | (10,044,303) | | | | | | (18,088,914) | | | | | | 63,331,217 | | |
Operating Income (Loss)
|
| | | | (1,885,212) | | | | | | 1,354,826 | | | | | | (65,306) | | | | | | 214,817 | | | | | | (380,875) | | | | | | 958,107 | | | | | | 73,026 | | | | | | (576,539) | | | | | | (1,644,692) | | | | | | (1,190,098) | | | | | | 4,187,802 | | | | | | (1,528,910) | | | | | | 1,087,919 | | |
Other (Income) Expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Other (income) expenses, net
|
| | | | 152,498 | | | | | | 9,718 | | | | | | — | | | | | | — | | | | | | 162,216 | | | | | | 532,391 | | | | | | 264,641 | | | | | | 17,501 | | | | | | (1,217) | | | | | | 813,316 | | | | | | (315,784) | | | | | | (21,541) | | | | | | 638,207 | | |
Income from investments
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (3,807,830) | | | | | | (3,807,830) | | | | | | 3,807,830 | | | | | | — | | | | | | — | | |
Interest income
|
| | | | (856) | | | | | | — | | | | | | — | | | | | | — | | | | | | (856) | | | | | | — | | | | | | (23,571) | | | | | | — | | | | | | (1,414,847) | | | | | | (1,438,418) | | | | | | 1,414,157 | | | | | | 856 | | | | | | (24,261) | | |
Gain on deposition of real estate
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,478,865) | | | | | | (492,362) | | | | | | — | | | | | | (1,971,227) | | | | | | 492,362 | | | | | | — | | | | | | (1,478,865) | | |
Interest expense
|
| | | | 1,463,763 | | | | | | — | | | | | | — | | | | | | 3,478 | | | | | | 1,467,241 | | | | | | 7,786,175 | | | | | | 2,598,563 | | | | | | 640,343 | | | | | | 2,649,432 | | | | | | 13,674,513 | | | | | | (4,559,136) | | | | | | (124,196) | | | | | | 10,458,422 | | |
Total other expenses, net
|
| | | | 1,615,405 | | | | | | 9,718 | | | | | | — | | | | | | 3,478 | | | | | | 1,628,601 | | | | | | 8,318,566 | | | | | | 1,360,768 | | | | | | 165,482 | | | | | | (2,574,462) | | | | | | 7,270,354 | | | | | | 839,429 | | | | | | (144,881) | | | | | | 9,593,503 | | |
Net Income (Loss)
|
| | | $ | (3,500,617) | | | | | $ | 1,345,108 | | | | | $ | (65,306) | | | | | $ | 211,339 | | | | | $ | (2,009,476) | | | | | $ | (7,360,459) | | | | | $ | (1,287,742) | | | | | $ | (742,021) | | | | | $ | 929,770 | | | | | $ | (8,460,452) | | | | | $ | 3,348,373 | | | | | $ | (1,384,029) | | | | | $ | (8,505,584) | | |
|
| | |
December 31, 2017
|
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Total real estate investments, at cost
|
| | | $ | 587,277 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 587,277 | | | | | $ | 125,329,509 | | | | | $ | 66,841,452 | | | | | $ | 22,008,704 | | | | | $ | — | | | | | $ | 214,179,665 | | | | | $ | (65,674,328) | | | | | $ | (2,618,266) | | | | | $ | 146,474,348 | | |
Total Assets
|
| | | $ | 3,966,716 | | | | | $ | 4,737,557 | | | | | $ | 68,196 | | | | | $ | 138,567 | | | | | $ | 8,911,036 | | | | | $ | 124,804,080 | | | | | $ | 68,062,361 | | | | | $ | 24,075,191 | | | | | $ | 52,378,056 | | | | | $ | 269,319,688 | | | | | $ | (118,603,267) | | | | | $ | (6,848,249) | | | | | $ | 152,779,208 | | |
|
Name and Signature
|
| |
Title
|
| |
Date
|
|
/s/ John C. Loeffler, II
John C. Loeffler, II
|
| | Chief Executive Officer and Chairman of the Board (Principal Executive Officer) | | |
June 12, 2019
|
|
*
Jennifer Schrader
|
| | Chief Operating Officer, Secretary and Director | | |
June 12, 2019
|
|
*
Jade Leung
|
| | Chief Financial Officer (Principal Financial and Accounting Officer) |
| |
June 12, 2019
|
|
*
William J. Gerber
|
| | Director, Chairman of Governance Committee | | |
June 12, 2019
|
|
*
Christopher Pair Garza
|
| | Director, Chairman of Compensation Committee | | |
June 12, 2019
|
|
*
Michael Trzupek
|
| | Director, Chairman of Audit Committee | | |
June 12, 2019
|
|