HUBILU VENTURE CORP Management Discussion and Analysis of Financial Conditions and Operating Results (Form 10-Q)

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The following is the MD&A and analysis of the financial condition and results of operations and is provided as a supplement to the unaudited financial statements and accompanying notes to help understand our financial condition, results of operations. Our operations and cash flows for the periods included in the accompanying unaudited financial statements.

In this Quarterly Report on Form 10-Q, “Company”, “the Company”, “we” and “our” refer to Hubilu Venture Corporation, a Delaware company, unless the context otherwise requires.

We intend the following discussion to assist in understanding our financial condition and results of operations for the three and nine months ended September 30, 2021 and 2020, respectively. You should refer to the financial statements and related notes in conjunction with this discussion.


Results of Operations


The following discussion of our financial condition and results of operations should be read in conjunction with our unaudited financial statements for the three and nine months ended. September 30, 2021 and 2020, respectively, together with the related notes, which are included in this quarterly report on Form 10-Q.

Three months ended September 30, 2021, compared to the three months ended
September 30, 2020

Income. Our income has decreased $ 90,545 at $ 167,043 for the three months ended
September 30, 2021, compared to $ 257,588 for the comparable period in 2020. The decrease is due to a decrease in consulting revenues.

Operating costs. In total, operating expenses increased $ 60,927 at $ 191,623
for the three months ended September 30, 2021, compared to $ 130,696 for the comparable period in 2020.

General and administrative costs increased $ 35,205 at $ 75,699 for the three months ended September 30, 2021, compared to $ 40,494 for the comparable period in 2020.

Increased depreciation expense $ 10,298 at $ 34,477 for the three months ended
September 30, 2021, compared to $ 24,179 for the comparable period in 2020.

Rental charges remained equal to $ 3,900 for the three months ended September 30, 2021, which was the same amount of $ 3,900 for the comparable period in 2020.

The property tax charge has increased $ 3,015 at $ 22,173 for the three months ended
September 30, 2021, compared to $ 19,158 for the comparable period in 2020. The increase is due to the acquisition of five new buildings.

Repair and maintenance costs remained equal to $ 0 for the three months ended
September 30, 2021, which was the same amount for the comparable period in 2020.

Tax and license charges increased $ 159 at $ 159 for the three months ended
September 30, 2021, compared to $ 0 for the comparable period in 2020. The increase is due to the timing of filing dates.

Payroll costs and benefits increased $ 8,874 at $ 36,000 for the three months ended September 30, 2021, compared to $ 27,126 for the comparable period in 2020. The increase is due to the return to normal of wages and salaries. Additional money has been paid to help employees during the Covid shutdown.

Transfer agent and depository fees have gone down $ 300 at $ 0 for the three months ended September 30, 2021, compared to $ 300 for the comparable period in 2020. The increase is due to the higher number of deposits during this period.


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Promissory note Interest expense has decreased $ 36,776 at $ 0 for the three months ended September 30, 2021, compared to $ 36,776 for the comparable period in 2020.

Mortgage interest increased $ 63,829 at $ 141,600 for the three months ended
September 30, 2021, compared to $ 77,771, for the comparable period in 2020. The increase is due to the acquisition of five new buildings.

Net loss. Our net loss has decreased $ 98,691 at $ 96,138 of net income for the three months ended September 30, 2021, compared to $ 2,553 of the net loss for the comparable period in 2020. The increase is due to the income and expenses discussed above.

Nine months ended September 30, 2021 compared to the nine months ended September 30, 2020

Income. Our income has increased $ 241,837 at $ 871,726 for the nine months ended
September 30, 2021 compared to $ 629,889 for the comparable period in 2020. The increase is due to the acquisition of five new properties and consulting revenues.

Operating costs. Operating expenses include general and administrative expenses, consulting fees, depreciation, professional fees, property taxes, rent, repairs and maintenance, transfer agent and depository fees, and utilities. In total, operating expenses increased $ 150,957 at $ 563,430 for the nine months ended September 30, 2021, compared to $ 412,473 for the comparable period in 2020. The increase is due to the acquisition of five new buildings.

General and administrative costs increased $ 96,932 at $ 237,741 for the nine months ended September 30, 2021, compared to $ 140,809 for the comparable period in 2020.

Increased depreciation expense $ 15,466 at $ 85,316 for the nine months ended
September 30, 2021, compared to $ 69,850 for the comparable period in 2020.

Professional fees have decreased $ 52 at $ 395 for the nine months ended September 30, 2021, compared to $ 447 for the comparable period in 2020.

The property tax charge has increased $ 28,603 at $ 79,723 for the nine months ended
September 30, 2021, compared to $ 51,120 for the comparable period in 2020. The increase is due to the payment of our taxes earlier in the first quarter.

Rental charges have increased $ 450 at $ 11,700 for the nine months ended September 30, 2021, compared to $ 11,250 for the comparable period in 2020. The increase is due to the downsizing of our offices.

Repair and maintenance expenses decreased $ 123 at $ 1,999 for the nine months ended September 30, 2021, compared to $ 2,122 for the comparable period in 2020. The decrease is due to the fact that the properties are in good condition and require less maintenance.

Tax and license charges increased $ 6,157 at $ 6,157 for the nine months ended
September 30, 2021, compared to $ 0 for the comparable period in 2020. The increase is due to the timing of filing dates.

Payroll costs and benefits have decreased $ 10,903 at $ 88,500 for the nine months ended September 30, 2021, compared to $ 99,403 for the comparable period in 2020. The decrease is due to the adjustment of wages and salaries since the closure of the Covid.

Reduced transfer agent and deposit fees $ 1,401 at $ 0 for the nine months ended
September 2021 compared to $ 1,401 for the comparable period in 2020. The decrease is due to a decrease in the monthly fees paid.

Public service spending increased $ 15,828 at $ 51,899 for the nine months ended
September 30, 2021, compared to $ 36071 for the comparable period in 2020. The increase is due to four additional real estate acquisitions.


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Promissory note Interest expense has decreased $ 89,285 at $ 0 for the nine months ended September 30, 2021, compared to $ 89,285 for the comparable period in 2020.

Mortgage interest increased $ 198,370 at $ 413,844 for the nine months ended
September 30, 2021, compared to $ 215,474 for the comparable period in 2020. The increase is due to the acquisition of five new buildings.

Net loss. Our net loss has decreased $ 290,006 to income $ 128,086 for the nine months ended September 30, 2021, compared to a loss of $ 131,920 for the comparable period in 2020. The decrease is attributable to the revenues and expenses described above.

Liquidity and capital resources. For the nine months ended September 30, 2021, we did not borrow money from our majority shareholder. We intend to seek additional funding for our working capital, in the form of equity or debt, in order to provide us with the capital necessary to achieve our operating plan. There can be no assurance that we will be successful in our efforts to raise additional capital.

Our total assets are $ 13,172,353 from September 30, 2021, made up of
$ 13,104,915 in net real estate assets, $ 29,876 in liquid, $ 9,212 in sequestered funds, $ 6,600 in deposits and $ 21,750 in prepaid expenses.

Our total liabilities are $ 13,920,015 from September 30, 2021.

we were provided $ 267,833 in operating activities for the nine months ended
September 30, 2021, including $ 128,086 in net income, interest and imputed gains, which were offset by non-cash charges of $ 85,316 for depreciation and amortization, $ 24,985 dividends accumulated in preferred shares, a net decrease of $ 5,827 in accounts payable and $ 11,855 received for security deposits.

We used $ 361,612 in investing activities for the nine months ended September 30, 2021, which was used for building additions and improvements.

We have had $ 21,009 used in fundraising activities for the nine months ended September 30, 2021.

The Company did not have any long-term lines of credit or other formal bank financing arrangements at the time. September 30, 2021.

The Company currently has no plans to buy or sell plant or equipment.

The Company does not currently plan to change the number of employees.


Impact of Inflation


The Company believes that inflation had a negligible effect on operations during the last quarter.


Capital Expenditures


The Company has passed $ 361,612 on the improvement of buildings during the nine months ended
September 30, 2021.

IMPACT OF RECENT ACCOUNTING STATEMENTS

For more information on the impact of recent accounting statements on our activities, see note 3 of the notes to the consolidated financial statements.

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