Overview

We were incorporated under the laws of the state of Delaware on March 5, 2015, and are a real estate consulting, asset management and business acquisition company, which specializes in acquiring student housing income properties and development/business opportunities located near the Los Angeles area. Due to high demand for houses from students, non-profit, and for-profit corporate tenants around the USC Campus and neighboring Metro/subway stations, we have focused on acquiring multiple houses, remodeling and renting them out. Rents have increased dramatically for houses in our target areas, allowing us to target larger and higher priced houses, while factoring in current interest rates. With multiple properties within a small radius, we’re able to take advantage of economies of scale and benefit from property management efficiencies. Our focus is to continue acquiring houses and expand rental operations.

We purchased two new properties during the third quarter of 2025, and entered into agreements to acquire two additional properties during the fourth quarter of 2024, bringing our total properties under management to thirty-five. All properties have been purchased in conjunction with various debt financing arrangements.

Going Concern Uncertainty

As of June 30, 2026, our balance of cash on hand was $108,704, and we had negative working capital of $1,476,662 and an accumulated deficit of $3,323,134. We expect to incur further losses in the development of its business; therefore, we may not have sufficient funds to sustain our operations for the next twelve months and we may need to raise additional cash to fund our operations. These factors raise substantial doubt about the Company’s ability to continue as a going concern. In the event revenues do not materialize at the expected rates, management would seek additional financing and would attempt to conserve cash by further reducing expenses. There can be no assurance that we will be successful in achieving these objectives.

The condensed consolidated financial statements do not include any adjustments that might result from the outcome of any uncertainty as to the Company’s ability to continue as a going concern. The condensed consolidated financial statements also do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern. Our ability to acquire new properties and increase revenues is largely dependent on our success in raising additional capital.

Results of Operations for the Three Months Ended June 30, 2026 and 2025

The following table summarizes selected items from the statement of operations for the three months ended June 30, 2026 and 2025, respectively.

Item	June 30, 2026	June 30, 2025	Increase/(Decrease)
Rental revenue	$504,556	$576,427	$(71,871)
Operating expenses:
General and administrative	$55,163	$98,716	$(43,553)
Salaries and benefits	$19,650	$19,075	$575
Utilities	$7,324	$12,157	$(4,833)
Professional fees	$29,305	$37,567	$(8,262)
Property taxes	$85,699	$73,960	$11,739
Repairs and maintenance	$146,613	$47,990	$98,623
Depreciation	$73,596	$64,794	$8,802
Total operating expenses	$417,350	$354,259	$63,091
Net operating income	$87,206	$222,168	$(134,962)
Other income (expense):
Consulting Income	$-	$13,100	$(13,100)
Interest income	$-	$249	$(249)
Interest expense	$(373,094)	$(362,380)	$(10,714)
Dividends expense	$(6,487)	$(6,469)	$(18)
Gain/(Loss) on early extinguishment of debt	$-	$-	$-
Other Income	$-	$1,990	$(1,990)
Total other income (expense)	$(379,581)	$(353,510)	$(26,071)
Net Income/(loss)	$(292,375)	$(131,342)	$(161,033)

Revenues

Our revenues decreased to $504,556 for the three months ended June 30, 2026, compared to $576,427 for the three months ended June 30, 2025, a decrease of $71,871, or 12%. The decrease is primarily due to higher vacancies and lower advance rent collections during the current quarter as compared to the prior year quarter.

General and Administrative

General and administrative expenses for the three months ended June 30, 2026 was $55,163, compared to $98,716 for the three months ended June 30, 2025, a decrease of $43,553, or 44%. General and administrative expenses decreased primarily due to lower administrative and overhead costs during the current period.

Salaries and Benefits

Salaries and benefits expenses for the three months ended June 30, 2026 was $19,650, compared to $19,075 for the three months ended June 30, 2025, an increase of $575, or 3%. Salaries and benefits increased due to routine compensation adjustments.

Utilities

Utilities expense for the three months ended June 30, 2026 was $7,324, compared to $12,157 for the three months ended June 30, 2025, a decrease of $4,833, or 40%. Utilities expense decreased due to more tenants paying for their own utilities directly during the current period.

Professional Fees

Professional fees expense for the three months ended June 30, 2026 was $29,305, compared to $37,567 for the three months ended June 30, 2025, a decrease of $8,262, or 22%. Professional fees consisted of legal, audit and accounting fees, which decreased primarily due to lower accounting fees.

Property Taxes

Property tax expense for the three months ended June 30, 2026 was $85,699, compared to $73,960 for the three months ended June 30, 2025, an increase of $11,739, or 16%. The increase is due to acquiring more properties.

Repairs and Maintenance

Repairs and maintenance expense for the three months ended June 30, 2026 was $146,613, compared to $47,990 for the three months ended June 30, 2025, an increase of $98,623, or 206%. Repairs and maintenance expense increased due to additional renovations and property upkeep performed during the current period.

Depreciation

Depreciation expense for the three months ended June 30, 2026 was $73,596, compared to $64,794 for the three months ended June 30, 2025, an increase of $8,802, or 14%. Depreciation expense increased during the current period due to properties that were purchased in the prior year.

Other Income (Expense)

Other expense for the three months ended June 30, 2026 was $379,581, compared to $353,510 for the three months ended June 30, 2025, an increase of $26,071, or 7%. During the three months ended June 30, 2026, other expense consisted of $6,487 of dividends expense and $373,094 of interest expense. Other expense consisted of $6,469 of dividends expense, $362,380 of interest expense, $13,100 of consulting income, $249 of interest income, and $1,990 of other income during the three months ended June 30, 2025. Other expense increased primarily due to increased interest expense on mortgages payable during the current period.

Net Loss

Net loss for the three months ended June 30, 2026 was $292,375, compared to $131,342 for the three months ended June 30, 2025, an increase of $161,033, or 123%. The increased net loss was primarily due to decreased rental revenue and increased repairs and maintenance expense during the current period.

Results of Operations for the Six Months Ended June 30, 2026 and 2025

The following table summarizes selected items from the statement of operations for the six months ended June 30, 2026 and 2025, respectively.

Item	June 30, 2026	June 30, 2025	Increase/(Decrease)
Rental revenue	$1,098,294	$959,939	$138,355
Operating expenses:
General and administrative	$105,689	$157,989	$(52,300)
Salaries and benefits	$36,150	$34,675	$1,475
Utilities	$22,542	$21,433	$1,109
Professional fees	$55,088	$72,791	$(17,703)
Property taxes	$159,587	$120,560	$39,027
Repairs and maintenance	$234,700	$155,982	$78,718
Depreciation	$147,088	$126,539	$20,549
Total operating expenses	$760,844	$689,969	$70,875
Net operating income	$337,450	$269,970	$67,480
Other income (expense):
Consulting Income	$-	$13,100	$(13,100)
Interest income	$-	$356	$(356)
Interest expense	$(769,097)	$(716,222)	$(52,875)
Dividends expense	$(12,903)	$(12,867)	$(36)
Gain/(Loss) on early extinguishment of debt	$(20,002)	$(10,229)	$(9,773)
Other Income	$-	$1,990	$(1,990)
Total other income (expense)	$(802,002)	$(723,872)	$(78,130)
Net Income/(loss)	$(464,552)	$(453,902)	$(10,650)

Revenues

Our revenues increased to $1,098,294 for the six months ended June 30, 2026, compared to $959,939 for the six months ended June 30, 2025, an increase of $138,355, or 14%. The increase is primarily due to rent increases at existing properties, partially offset by higher vacancies and lower advance rent collections during the current quarter.

General and Administrative

General and administrative expenses for the six months ended June 30, 2026 was $105,689, compared to $157,989 for the six months ended June 30, 2025, a decrease of $52,300, or 33%. General and administrative expenses decreased primarily due to lower administrative and overhead costs during the current period.

Salaries and Benefits

Salaries and benefits expenses for the six months ended June 30, 2026 was $36,150, compared to $34,675 for the six months ended June 30, 2025, an increase of $1,475, or 4%. Salaries and benefits increased due to routine compensation adjustments.

Utilities

Utilities expense for the six months ended June 30, 2026 was $22,542, compared to $21,433 for the six months ended June 30, 2025, an increase of $1,109, or 5%. Utilities expense increased slightly, partially offset by more tenants paying for their own utilities directly.

Professional Fees

Professional fees expense for the six months ended June 30, 2026 was $55,088, compared to $72,791 for the six months ended June 30, 2025, a decrease of $17,703, or 24%. Professional fees consisted of legal, audit and accounting fees, which decreased primarily due to lower accounting fees.

Property Taxes

Property tax expense for the six months ended June 30, 2026 was $159,587, compared to $120,560 for the six months ended June 30, 2025, an increase of $39,027, or 32%. The increase is due to acquiring more properties.

Repairs and Maintenance

Repairs and maintenance expense for the six months ended June 30, 2026 was $234,700, compared to $155,982 for the six months ended June 30, 2025, an increase of $78,718, or 50%. Repairs and maintenance expense increased due to additional renovations and property upkeep performed during the current period.

Depreciation

Depreciation expense for the six months ended June 30, 2026 was $147,088, compared to $126,539 for the six months ended June 30, 2025, an increase of $20,549, or 16%. Depreciation expense increased during the current period due to properties that were purchased in the prior year.

Other Income (Expense)

Other expense for the six months ended June 30, 2026 was $802,002, compared to $723,872 for the six months ended June 30, 2025, an increase of $78,130, or 11%. During the six months ended June 30, 2026, other expense consisted of $12,903 of dividends expense, $769,097 of interest expense, and $20,002 of loss on early extinguishment of debt. Other expense consisted of $12,867 of dividends expense, $716,222 of interest expense, $10,229 of loss on early extinguishment of debt, $13,100 of consulting income, $356 of interest income, and $1,990 of other income during the six months ended June 30, 2025. Other expense increased primarily due to increased interest expense on mortgages payable during the current period.

Net Loss

Net loss for the six months ended June 30, 2026 was $464,552, compared to $453,902 for the six months ended June 30, 2025, an increase of $10,650, or 2%. The increased net loss was primarily due to decreased rental revenue and increased repairs and maintenance expense during the current period.

Liquidity and Capital Resources

The following table summarizes our total current assets, liabilities and working capital as of June 30, 2026 and December 31, 2025.

Item	June 30, 2026	December 31, 2025
Current Assets	$139,800	$124,579
Current Liabilities	$1,616,462	$2,561,452
Working Capital Deficit	$(1,476,662)	$(2,436,873)

As shown in the accompanying condensed consolidated financial statements, as of June 30, 2026, the Company has incurred recurring losses from operations resulting in an accumulated deficit of $3,323,134, with negative working capital of $1,476,662 and cash on hand of $108,704, which may not be sufficient to sustain operations. These factors raise substantial doubt about the Company’s ability to continue as a going concern. Management is actively working to increase occupancy rates to increase revenues. In addition, the Company is currently seeking additional sources of capital to fund short term operations. Management believes these factors will contribute to achieving profitability. The accompanying condensed consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. These condensed consolidated financial statements also do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classifications of liabilities, that might be necessary should the Company be unable to continue as a going concern.

Cash Flow

Comparison of the Six Months Ended June 30, 2026 and the Six Months Ended June 30, 2025

The following table sets forth the primary sources and uses of cash for the periods presented below:

Item	Six Months Ended June 30, 2026	Six Months Ended June 30, 2025
Net cash provided by (used in) operating activities	$(81,970)	$(68,680)
Net cash used in investing activities	$(17,857)	$(476,339)
Net cash provided by (used in) financing activities	$156,460	$582,102
Net change in cash	$56,633	$37,083

Net Cash Provided by (Used in) Operating Activities

Net cash used in operating activities was $81,970 for the six months ended June 30, 2026, compared to $68,680 of net cash used in operating activities for the six months ended June 30, 2025, an increase of $13,290, or 19%. The increase was primarily due to the timing of collections and payments on working capital accounts during the current period.

Net Cash Used in Investing Activities

Net cash used in