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, 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 months ended March 31, 2021 and 2020, respectively, together with notes
thereto, which are included in this Quarterly Report on Form 10-Q.
Three months ended March 31, 2021 compared to the three months ended March 31,
2020
Revenues. Our revenues increased $160,599 to $316,729 for the three months ended
March 31, 2020 compared to $156,130 for the comparable period in 2020. The
increase is due to the acquisition of 3 new properties.
Operating expenses. In total, operating expenses decreased $50,196 to $130,184
for the three months ended March 31, 2021 compared to $180,380 for the
comparable period in 2020. The decrease is primarily due to the Company paying
less in salaries and wages.
General and administrative expenses decreased $61,834 to $54,903 for the three
months ended March 31, 2021 compared to $116,737 for the comparable period in
2020.
Depreciation expense decreased $10,810 to $12,039 for the three months ended
March 31, 2021 compared to $22,849 for the comparable period in 2020.
Professional fees increased $236 to $236 for the three months ended March 31,
2021 compared to $0 for the comparable period in 2020. The increase is
attributable to the timing of the invoices received by the Company's
professional service providers.
Property tax expense increased $1,907 to $16,399 for the three months ended
March 31, 2021 compared to $14,492 for the comparable period in 2020. The
increase is due to the acquisition of 3 new properties.
Repairs and maintenance expense decreased $6,976 to $1,510 for the three months
ended March 31, 2021 compared to $8,486 for the comparable period in 2020. The
decrease is due to less maintenance needs.
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Promissory Note Interest expense decreased $49,091 to $0 for the three months
ended March 30, 2021 compared to $49,091 for the comparable period in 2020.
Mortgage Interest increased $79,478 to $133,360 for the three months ended March
31, 2021 compared to $53,882, for the comparable period in 2020. The increase is
due to the acquisition of 3 new properties.
Net loss. Our net loss decreased $174,105 to $51,027 for the three months ended
March 31, 2021 compared to $123,078 for the comparable period in 2020. The
decrease is attributable to the revenue and expenses discussed above.
Liquidity and Capital Resources. For the three months ended March 31, 2021, 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 $10,164,945 as of March 31, 2021, consisting of $10,050,622
in net property assets, $107,594 in cash, $6,600 in deposits and $0 in prepaid
expenses.
Our total liabilities are $11,006,311 as of March 31, 2021.
We were provided $98,325 in operating activities for the three months ended
March 31, 2021 including $51,027 in net income, imputed interest and gain, which
was offset by non-cash charges of $12,039 for depreciation and amortization,
$6,221 in dividends accrued in preferred shares, a net decrease of $2,414 in
accounts payable and $5,500 received for security deposits.
We used $114,101 in investing activities for the three months ended March 31,
2021, which was used for building additions and improvements.
We had $21,294 provided by financing activities for the three months ended March
31, 2021.
The Company had no formal long-term lines or credit or other bank financing
arrangements as of March 31, 2021.
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 $114,101on building improvements during the three months ended
March 31, 2021.
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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