The following is management's discussion and analysis of financial condition and
results of operations and is provided as a supplement 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, "Company," "the Company," "us," and "our"
refer to Hubilu Venture Corporation, a Delaware corporation, unless the context
requires otherwise.
We intend the following discussion to assist in the understanding of our
financial position and our 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 notes
thereto, which are included in this Quarterly Report on Form 10-Q.
Three months ended March 31, 2022, compared to the three months ended March 31,
2021
Revenues. Our revenues increased $73,208 to $389,937 for the three months ended
March 31, 2022, compared to $316,729 for the comparable period in 2021. The
increase is due to additional property acquisitions.
Operating expenses. In total, operating expenses increased $117,189 to $247,373
for the three months ended March 31, 2022, compared to $130,184 for the
comparable period in 2021.
General and administrative expenses increased $23,335 to $78,238 for the three
months ended March 31, 2022, compared to $54,903 for the comparable period in
2021.
Depreciation expense increased $37,188 to $49,227 for the three months ended
March 31, 2022, compared to $12,039 for the comparable period in 2021.
Rent expense stayed equal at $3,900 for the three months ended March 31, 2022,
which was the same amount of $3,900 for the comparable period in 2021.
Property tax expense increased $44,833 to $61,232 for the three months ended
March 31, 2022, compared to $16,399 for the comparable period in 2021. The
increase is due to the acquisition of nine new properties.
Repairs and maintenance expense decreased $1,060 to $450 for the three months
ended March 31, 2022, compared to $1,510 for the comparable period in 2021.
Taxes and licenses expense increased $1,639 to $2,475 for the three months ended
March 31, 2022, compared to $836 for the comparable period in 2021. The increase
is due to timing of filing dates.
Wages and benefits expense increased $10,625 to $36,875 for the three months
ended March 31, 2022, compared to $26,250 for the comparable period in 2021. The
increase is due to salaries and wages being adjusted since the Covid shutdown.
Transfer agent and filing fees expense increased $300 to $300 for the three
months ended March 31, 2022, compared to $0 for the comparable period in 2021.
The increase is due to additional filings during this period.
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Interest expense increased $86,830 to $220,190 for the three months ended March
31, 2022, compared to $133,360, for 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 to $47,826 of net loss for the
three months ended March 31, 2022, compared to $51,027 of net income for the
comparable period in 2021. The increase is attributable to the revenue and
expenses discussed above.
Liquidity and Capital Resources. For the three months ended March 31, 2022, we
did not borrow any 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 necessary capital to accomplish our plan of operation. There
can be no assurance that we will be successful in our efforts to raise
additional capital.
Our total assets are $16,916,510 as of March 31, 2022, consisting of $16,786,755
in net property assets, $123,155 in cash, and $6,600 in deposits.
Our total liabilities are $17,780,485 as of March 31, 2022.
We were provided $32,673 in operating activities for the three months ended
March 31, 2022, consisting of $47,826 in net loss, imputed interest, which was
offset by non-cash charges of $49,227 for depreciation and amortization, $30 in
dividends accrued in preferred shares, a net decrease of $3,680 in accounts
payable and $19,194 received for security deposits.
We used $216,013 in investing activities for the three months ended March 31,
2022, which was used for building additions and improvements.
We had $102,757 provided by financing activities for the three months ended
March 31, 2022.
The Company had no formal long-term lines or credit or other bank financing
arrangements as of March 31, 2022.
The Company has no current plans for the purchase or sale of any plant or
equipment.
The Company has no current plans to make any changes in the number of employees.
Impact of Inflation
The Company believes that inflation has had a negligible effect on operations
over the past quarter.
Capital Expenditures
The Company spent $216,013 on building improvements during the three months
ended March 31, 2022.
IMPACT OF RECENT ACCOUNTING PRONOUNCEMENTS
For 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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