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

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The following is management’s analysis of financial condition and results of operations and is provided in addition to the accompanying unaudited financial statements and notes to help provide an understanding of our financial condition, results of operations and cash flows during the periods included in the accompanying unaudited financial statements.

In this Quarterly Report on Form 10-Q, “the company”, “the company”, “we” and “our” mean Hubilu Venture Corporationa Delaware company, unless the context otherwise requires.

We hope that the following discussion will assist in understanding our financial condition and results of operations for the three months ended
March 31, 2022 and 2021, 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 months ended March 31, 2022 and 2021, respectively, together with the accompanying notes, which are included in this Quarterly Report on Form 10-Q.

Three months completed March 31, 2022compared to the three months ended March 31, 2021

Revenues. Our income has increased $73,208 at $389,937 for the three months ended
March 31, 2022compared to $316,729 for the comparable period in 2021. The increase is due to additional real estate acquisitions.

Functionnary costs. Overall, operating expenses increased $117,189 at $247,373
for the three months ended March 31, 2022compared to $130,184 for the comparable period in 2021.

General and administrative expenses increased $23,335 at $78,238 for the three months ended March 31, 2022compared to $54,903 for the comparable period in 2021.

Depreciation expense increased $37,188 at $49,227 for the three months ended
March 31, 2022compared to $12,039 for the comparable period in 2021.

Rental charges remained equal to $3,900 for the three months ended March 31, 2022which was the same amount of $3,900 for the comparable period in 2021.

The property tax charge has increased $44,833 at $61,232 for the three months ended
March 31, 2022compared to $16,399 for the comparable period in 2021. The increase is due to the acquisition of nine new properties.

Repairs and maintenance expenses have decreased $1,060 at $450 for the three months ended March 31, 2022compared to $1,510 for the comparable period in 2021.

Tax and license charges increased $1,639 at $2,475 for the three months ended
March 31, 2022compared to $836 for the comparable period in 2021. The increase is due to timing of filing dates.

Salary and social charges have increased $10,625 at $36,875 for the three months ended March 31, 2022compared to $26,250 for the comparable period in 2021. The increase is due to the adjustment of wages and salaries since the Covid shutdown.

Transfer agent and custodian fees increased $300 at $300 for the three months ended March 31, 2022compared to $0 for the comparable period in 2021. The increase is due to additional deposits during this period.


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Interest expense increased $86,830 at $220,190 for the three months ended March 31, 2022compared to $133,360for the comparable period in 2021. The increase is due to the acquisition of nine new properties.

Net income (loss). Our net loss increased $98,853 at $47,826 net loss for the three months ended March 31, 2022compared to $51,027 net income for the comparable period in 2021. The increase is attributable to the revenues and expenses mentioned above.

Cash and capital resources. For the three months ended March 31, 2022, we have not borrowed money from our majority shareholder. We intend to seek additional financing for our working capital, in the form of equity or debt, 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 $16,916,510 of the March 31, 2022made up of $16,786,755
in net real estate assets, $123,155 in cash, and $6,600 in the deposits.

Our total liabilities are $17,780,485 of the March 31, 2022.

we were provided $32,673 in operating activities for the three months ended
March 31, 2022made up of $47,826 in net loss, theoretical interest, which was offset by non-cash charges of $49,227 depreciation, $30 dividends accrued in preferred shares, a net decrease of $3,680 in accounts payable and $19,194 receipts for security deposits.

We used $216,013 in investing activities for the three months ended March 31, 2022which was used to build additions and improvements.

We have had $102,757 provided by fundraising activities for the three months ended
March 31, 2022.

The Company had no formal long-term lines of credit or other bank financing arrangements March 31, 2022.

The Company currently has no plans to purchase 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 spent $216,013 on improving buildings in the past three months March 31, 2022.

IMPACT OF RECENT ACCOUNTING STATEMENTS

For more information on the impact of recent accounting pronouncements on our business, see Note 3 of the Notes to the Consolidated Financial Statements.

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