Issuer CIK | 0001627282 |
Issuer CCC | XXXXXXXX |
DOS File Number | |
Offering File Number | 024-11016 |
Is this a LIVE or TEST Filing? | ☒ LIVE ☐ TEST |
Would you like a Return Copy? | ☐ |
Notify via Filing Website only? | ☐ |
Since Last Filing? | ☒ |
Name | |
Phone | |
E-Mail Address |
Exact name of issuer as specified in the issuer's charter | CaliberCos Inc. |
Jurisdiction of Incorporation / Organization |
DELAWARE
|
Year of Incorporation | 2014 |
CIK | 0001627282 |
Primary Standard Industrial Classification Code | REAL ESTATE |
I.R.S. Employer Identification Number | 47-2426901 |
Total number of full-time employees | 70 |
Total number of part-time employees | 0 |
Address 1 | 8901 E. Mountain View Rd, Ste 150 |
Address 2 | |
City | Scottsdale |
State/Country |
ARIZONA
|
Mailing Zip/ Postal Code | 85258 |
Phone | 480-295-7600 |
Name | Thomas Poletti, Brian S. Korn |
Address 1 | |
Address 2 | |
City | |
State/Country | |
Mailing Zip/ Postal Code | |
Phone |
Industry Group (select one) | ☐ Banking ☐ Insurance ☒ Other |
Cash and Cash Equivalents |
$
5954795.00 |
Investment Securities |
$
0.00 |
Total Investments |
$
|
Accounts and Notes Receivable |
$
1439382.00 |
Loans |
$
|
Property, Plant and Equipment (PP&E): |
$
171943086.00 |
Property and Equipment |
$
|
Total Assets |
$
172134797.00 |
Accounts Payable and Accrued Liabilities |
$
22154703.00 |
Policy Liabilities and Accruals |
$
|
Deposits |
$
|
Long Term Debt |
$
117489726.00 |
Total Liabilities |
$
164671778.00 |
Total Stockholders' Equity |
$
3621085.00 |
Total Liabilities and Equity |
$
172134797.00 |
Total Revenues |
$
70672140.00 |
Total Interest Income |
$
|
Costs and Expenses Applicable to Revenues |
$
71593143.00 |
Total Interest Expenses |
$
|
Depreciation and Amortization |
$
9025829.00 |
Net Income |
$
-2992701.00 |
Earnings Per Share - Basic |
$
-0.13 |
Earnings Per Share - Diluted |
$
-0.13 |
Name of Auditor (if any) | Marcum LLP |
Name of Class (if any) Common Equity | Common Stock |
Common Equity Units Outstanding | 27974212 |
Common Equity CUSIP (if any): | 000000000 |
Common Equity Units Name of Trading Center or Quotation Medium (if any) | N/A |
Preferred Equity Name of Class (if any) | Series A Preferred Stock |
Preferred Equity Units Outstanding | 1657396 |
Preferred Equity CUSIP (if any) | 000000000 |
Preferred Equity Name of Trading Center or Quotation Medium (if any) | N/A |
Debt Securities Name of Class (if any) | None |
Debt Securities Units Outstanding | 0 |
Debt Securities CUSIP (if any): | 000000000 |
Debt Securities Name of Trading Center or Quotation Medium (if any) | N/A |
Check this box to certify that all of the following statements are true for the issuer(s)
☒
Check this box to certify that, as of the time of this filing, each person described in Rule 262 of Regulation A is either not disqualified under that rule or is disqualified but has received a waiver of such disqualification.
☒
Check this box if "bad actor" disclosure under Rule 262(d) is provided in Part II of the offering statement.
☐
Check the appropriate box to indicate whether you are conducting a Tier 1 or Tier 2 offering | ☐ Tier1 ☒ Tier2 |
Check the appropriate box to indicate whether the financial statements have been audited | ☐ Unaudited ☒ Audited |
Types of Securities Offered in this Offering Statement (select all that apply) |
☒Equity (common or preferred stock) |
Does the issuer intend to offer the securities on a delayed or continuous basis pursuant to Rule 251(d)(3)? | ☐ Yes ☒ No |
Does the issuer intend this offering to last more than one year? | ☐ Yes ☒ No |
Does the issuer intend to price this offering after qualification pursuant to Rule 253(b)? | ☒ Yes ☐ No |
Will the issuer be conducting a best efforts offering? | ☒ Yes ☐ No |
Has the issuer used solicitation of interest communications in connection with the proposed offering? | ☐ Yes ☒ No |
Does the proposed offering involve the resale of securities by affiliates of the issuer? | ☐ Yes ☒ No |
Number of securities offered | 1 |
Number of securities of that class outstanding | 27974212 |
Price per security |
$
|
The portion of the aggregate offering price attributable to securities being offered on behalf of the issuer |
$
40067305.00 |
The portion of the aggregate offering price attributable to securities being offered on behalf of selling securityholders |
$
9932695.00 |
The portion of the aggregate offering price attributable to all the securities of the issuer sold pursuant to a qualified offering statement within the 12 months before the qualification of this offering statement |
$
0.00 |
The estimated portion of aggregate sales attributable to securities that may be sold pursuant to any other qualified offering statement concurrently with securities being sold under this offering statement |
$
0.00 |
Total (the sum of the aggregate offering price and aggregate sales in the four preceding paragraphs) |
$
50000000.00 |
Underwriters - Name of Service Provider | N/A | Underwriters - Fees |
$
0.00 |
Sales Commissions - Name of Service Provider | N/A | Sales Commissions - Fee |
$
0.00 |
Finders' Fees - Name of Service Provider | N/A | Finders' Fees - Fees |
$
0.00 |
Audit - Name of Service Provider | Marcum LLP | Audit - Fees |
$
700000.00 |
Legal - Name of Service Provider | Manatt, Phelps & Phillips, LLP | Legal - Fees |
$
400000.00 |
Promoters - Name of Service Provider | N/A | Promoters - Fees |
$
0.00 |
Blue Sky Compliance - Name of Service Provider | N/A | Blue Sky Compliance - Fees |
$
0.00 |
CRD Number of any broker or dealer listed: | 000000000 |
Estimated net proceeds to the issuer |
$
|
Clarification of responses (if necessary) |
Selected States and Jurisdictions |
ALABAMA
ALASKA
ARIZONA
ARKANSAS
CALIFORNIA
COLORADO
CONNECTICUT
DELAWARE
FLORIDA
GEORGIA
HAWAII
IDAHO
ILLINOIS
INDIANA
IOWA
KANSAS
KENTUCKY
LOUISIANA
MAINE
MARYLAND
MASSACHUSETTS
MICHIGAN
MINNESOTA
MISSISSIPPI
MISSOURI
MONTANA
NEBRASKA
NEVADA
NEW HAMPSHIRE
NEW JERSEY
NEW MEXICO
NEW YORK
NORTH CAROLINA
NORTH DAKOTA
OHIO
OKLAHOMA
OREGON
PENNSYLVANIA
RHODE ISLAND
SOUTH CAROLINA
SOUTH DAKOTA
TENNESSEE
TEXAS
UTAH
VERMONT
VIRGINIA
WASHINGTON
WEST VIRGINIA
WISCONSIN
WYOMING
DISTRICT OF COLUMBIA
ALBERTA, CANADA
BRITISH COLUMBIA, CANADA
MANITOBA, CANADA
NEW BRUNSWICK, CANADA
NEWFOUNDLAND, CANADA
NOVA SCOTIA, CANADA
ONTARIO, CANADA
PRINCE EDWARD ISLAND, CANADA
QUEBEC, CANADA
SASKATCHEWAN, CANADA
YUKON, CANADA
CANADA (FEDERAL LEVEL)
|
None | ☒ |
Same as the jurisdictions in which the issuer intends to offer the securities | ☐ |
Selected States and Jurisdictions |
None ☐
As to any unregistered securities issued by the issuer of any of its predecessors or affiliated issuers within one year before the filing of this Form 1-A, state:
(a)Name of such issuer | CaliberCos Inc. |
(b)(1) Title of securities issued | Common Stock |
(2) Total Amount of such securities issued | 839448 |
(3) Amount of such securities sold by or for the account of any person who at the time was a director, officer, promoter or principal securityholder of the issuer of such securities, or was an underwriter of any securities of such issuer. | 30619 |
(c)(1) Aggregate consideration for which the securities were issued and basis for computing the amount thereof. | 1438148 |
(2) Aggregate consideration for which the securities listed in (b)(3) of this item (if any) were issued and the basis for computing the amount thereof (if different from the basis described in (c)(1)). | 55,941 |
As to any unregistered securities issued by the issuer of any of its predecessors or affiliated issuers within one year before the filing of this Form 1-A, state:
(a)Name of such issuer | CaliberCos Inc. |
(b)(1) Title of securities issued | Series A Preferred Stock |
(2) Total Amount of such securities issued | 9221 |
(3) Amount of such securities sold by or for the account of any person who at the time was a director, officer, promoter or principal securityholder of the issuer of such securities, or was an underwriter of any securities of such issuer. | 0 |
(c)(1) Aggregate consideration for which the securities were issued and basis for computing the amount thereof. | 20747 |
(2) Aggregate consideration for which the securities listed in (b)(3) of this item (if any) were issued and the basis for computing the amount thereof (if different from the basis described in (c)(1)). |
(e) Indicate the section of the Securities Act or Commission rule or regulation relied upon for exemption from the registration requirements of such Act and state briefly the facts relied upon for such exemption | All securities issued pursuant to safe harbor of R. 506(b) of Reg D of Sec. Act of 1933, as amended, or other available exemptions such as Section 4(a)(2) or R. 701. All investors certified "accredited investor" status through income & net worth test. |
Shares Offered by the Company
|
| |
Price Per
Share to Public |
| |
Proceeds to
Company(1)(2) |
| ||||||
Per Offered Share
|
| | | $ | 5.00 | | | | | $ | 40,223,154 | | |
Maximum Offering Amount
|
| | | $ | 5.00 | | | | | $ | 40,223,154 | | |
Shares Offered by the Selling Securityholders
|
| |
Price Per
Share to Public |
| |
Proceeds to Selling
Securityholders |
| ||||||
Per Offered Share
|
| | | $ | 5.00 | | | | | $ | 9,776,846 | | |
Maximum Offering Amount
|
| | | $ | 5.00 | | | | | $ | 9,776,846 | | |
| | | | | 1 | | | |
| | | | | 7 | | | |
| | | | | 21 | | | |
| | | | | 22 | | | |
| | | | | 23 | | | |
| | | | | 24 | | | |
| | | | | 30 | | | |
| | | | | 31 | | | |
| | | | | 49 | | | |
| | | | | 52 | | | |
| | | | | 54 | | | |
| | | | | 56 | | | |
| | | | | 62 | | | |
| | | | | 65 | | | |
| | | | | 66 | | | |
| | | | | 70 | | | |
| | | | | 72 | | | |
| | | | | 74 | | | |
| | | | | 75 | | | |
| | | | | 75 | | | |
| | | | | F-1 | | | |
| | | | | III-1 | | | |
| | | | | III-3 | | |
| | |
Year Ended
December 31, |
| |||||||||
| | |
2018
|
| |
2017
|
| ||||||
Consolidated Results | | | | | | | | | | | | | |
Total AUM Rollforward – @ Fair Value
|
| | | | | | | | | | | | |
Balance, Beginning
|
| | | $ | 278,572,186 | | | | | $ | 204,112,874 | | |
Assets Acquired
|
| | | | 29,957,391 | | | | | | 17,943,621 | | |
Construction/Renovation
|
| | | | 13,016,662 | | | | | | 25,421,170 | | |
Market Appreciation/(Depreciation)
|
| | | | 64,926,964 | | | | | | 42,339,202 | | |
Assets Sold
|
| | | | (11,916,203) | | | | | | (11,244,681) | | |
Balance, End
|
| | | $ | 374,557,000 | | | | | $ | 278,572,186 | | |
On Basis of Full Conversion of Issued Instruments
|
| |
$50 Million
Raise |
| |||
Price per share
|
| | | $ | 5.00 | | |
Shares issued
|
| | | | 7,988,911 | | |
Capital raised
|
| | | $ | 40,223,154 | | |
Less: Estimated offering costs
|
| | | $ | (2,750,000) | | |
Net Offering Proceeds
|
| | | $ | 37,473,154 | | |
Net tangible book value pre-offering(1)
|
| | | $ | (24,091,281) | | |
Conversion of debt to equity
|
| | | $ | 1,377,271 | | |
Net tangible book value post-offering
|
| | | $ | 14,759,144 | | |
Shares issued and outstanding pre-offering assuming full conversion(2)
|
| | | | 33,229,777 | | |
Post-offering shares issued and outstanding
|
| | | | 41,218,688 | | |
Net tangible book value per share prior to offering(1)(2)
|
| | | $ | (0.72) | | |
Increase/(Decrease) per share attributable to new investors
|
| | | $ | 1.08 | | |
Net tangible book value per share after offering
|
| | | $ | 0.36 | | |
Dilution per share to new investors ($)
|
| | | $ | 4.64 | | |
Dilution per share to new investors (%)
|
| | | | 92.84% | | |
| | |
Shares Purchased
|
| |
Total Consideration
|
| |
Average
Price Per Share |
| |||||||||||||||||||||
Assuming Maximum Number of Shares Sold:
|
| |
Number
|
| |
Percentage
|
| |
Amount
|
| |
Percentage
|
| ||||||||||||||||||
Existing Caliber Stockholders(A)
|
| | | | 27,974,212 | | | | | | 77.79% | | | | | $ | 12,411,308 | | | | | | 23.58% | | | | | $ | 0.44 | | |
New Caliber Class A Common Stockholders(B)
|
| | | | 7,988,911 | | | | | | 22.21% | | | | | $ | 40,223,154 | | | | | | 76.42% | | | | | $ | 5.00 | | |
Total | | | | | 35,963,123 | | | | | | 100.0% | | | | | $ | 52,634,462 | | | | | | 100% | | | | | $ | 1.46 | | |
| | | | | |
As of December 31, 2018
|
| |||||||||||||||
Fund Name
|
| |
Fund Inception
Date |
| |
Contributed
Capital, Net(1) |
| |
Investments, at
Cost(2) |
| |
Investments, at
Fair Value(3) |
| |||||||||
Hospitality: | | | | | | | | | | | | | | | | | | | | | | |
CHPH, LLC (“CHPH”)
|
| | October 2012 | | | | $ | 10,339,740 | | | | | $ | 23,601,256 | | | | | $ | 32,800,000 | | |
Indian Bend Hotel Group, LLC (“IBHG”)
|
| | September 2014 | | | | | 4,225,842 | | | | | | 11,292,069 | | | | | | 15,000,000 | | |
44th & McDowell Hotel Group, LLC (“44th”)
|
| | May 2015 | | | | | 8,249,646 | | | | | | 22,539,770 | | | | | | 30,700,000 | | |
Tucson East, LLC (“Tucson East”)
|
| | May 2016 | | | | | 9,696,091 | | | | | | 20,709,181 | | | | | | 25,300,000 | | |
47th Street Phoenix Fund, LLC (“47th Street”)
|
| | October 2016 | | | | | 12,994,123 | | | | | | 36,368,833 | | | | | | 47,800,000 | | |
CH Ocotillo
|
| | June 2018 | | | | | 5,367,820 | | | | | | 12,124,992 | | | | | | 13,800,000 | | |
Elliot 10
|
| | September 2017 | | | | | 3,410,000 | | | | | | 16,763,431 | | | | | | 17,300,000 | | |
SF Alaska, LP (“Salmon Falls”)
|
| | August 2015 | | | | | 5,666,974 | | | | | | 10,239,693 | | | | | | 13,500,000 | | |
Edgewater Hotel Group, LLC (“Edgewater”)
|
| | October 2015 | | | | | 1,620,279 | | | | | | 2,874,180 | | | | | | 4,300,000 | | |
| | | | | | | | 61,570,515 | | | | | | 156,513,405 | | | | | | 200,500,000 | | |
Residential: | | | | | | | | | | | | | | | | | | | | | | |
GC Square, LLC (“GC Square”)
|
| | September 2015 | | | | | 6,280,570 | | | | | | 12,943,775 | | | | | | 25,000,000 | | |
Palms Weekly Portfolio, LP (“Palms”)
|
| | July 2016 | | | | | 6,650,000 | | | | | | 15,050,353 | | | | | | 24,500,000 | | |
South Mountain Square, LLC (“SMS”)
|
| | June 2012 | | | | | — | | | | | | 4,725,059 | | | | | | 10,800,000 | | |
Circle Lofts, LLC (“Eclipse”)
|
| | November 2016 | | | | | 2,491,043 | | | | | | 8,447,794 | | | | | | 11,500,000 | | |
The Roosevelt I, LLC (“Roosevelt”)
|
| | January 2016 | | | | | 2,017,379 | | | | | | 5,110,604 | | | | | | 7,000,000 | | |
CDIF Sunrise, LLC (“Treehouse”)
|
| | April 2014 | | | | | 7,727,619 | | | | | | 12,711,942 | | | | | | 18,200,000 | | |
Caliber Residential Advantage Fund, LP (“CRAF”)
|
| | August 2016 | | | | | 6,247,511 | | | | | | 3,778,884 | | | | | | 4,700,000 | | |
| | | | | | | | 31,414,122 | | | | | | 62,768,411 | | | | | | 101,700,000 | | |
|
| | | | | |
As of December 31, 2018
|
| |||||||||||||||
Fund Name
|
| |
Fund Inception
Date |
| |
Contributed
Capital, Net(1) |
| |
Investments, at
Cost(2) |
| |
Investments, at
Fair Value(3) |
| |||||||||
Commercial: | | | | | | | | | | | | | | | | | | | | | | |
SIP Coffee & Beer Kitchen, LLC (“Sip”)
|
| | February 2017 | | | | | 394,286 | | | | | | 394,286 | | | | | | 600,000 | | |
AZ24HR Storage Kingman, LLC (“Kingman”)
|
| | December 2016 | | | | | 58,025 | | | | | | 536,823 | | | | | | 900,000 | | |
1040 N VIP Blvd, LLC (“VIP”)
|
| | December 2015 | | | | | 161,025 | | | | | | 1,957,537 | | | | | | 1,500,000 | | |
1601 Athol Ave, LLC (“Athol”)
|
| | December 2015 | | | | | 74,866 | | | | | | 1,299,952 | | | | | | 1,800,000 | | |
Logan Airport Storage, LLC (“Logan”)
|
| | February 2016 | | | | | 205,518 | | | | | | 1,832,997 | | | | | | 1,800,000 | | |
CDIF Baywood, LLC (“Baywood”)
|
| | December 2013 | | | | | 85,220 | | | | | | 77,689 | | | | | | 100,000 | | |
CH Mesa Holdings, LLC (“Mesa”)
|
| | July 2017 | | | | | 3,813,804 | | | | | | 8,199,229 | | | | | | 10,400,000 | | |
J-25 Johnstown Holdings, LLC (“J-25”)
|
| | May 2017 | | | | | 2,684,355 | | | | | | 5,200,982 | | | | | | 37,600,000 | | |
Fiesta Tech Owners, LLC (“Fiesta Tech”)
|
| | March 2016 | | | | | 1,804,998 | | | | | | 4,860,929 | | | | | | 8,000,000 | | |
| | | | | | | | 9,282,097 | | | | | | 24,360,424 | | | | | | 62,700,000 | | |
Total Funds
|
| | | | | | $ | 102,266,734 | | | | | $ | 243,642,240 | | | | | $ | 364,900,000 | | |
|
Non-Fund Assets
|
| | | | | | | | | | | | | | | | | | | | | |
Residential: | | | | | | | | | | | | | | | | | | | | |||
Caliber Auction Homes, LLC | | | | | — | | | | | | 4,111,640 | | | | | | 6,900,000 | | | |||
Saddleback Ranch, LLC (“Saddleback”) | | | | | — | | | | | | 1,122,437 | | | | | | 3,500,000 | | | |||
Total Assets Under Management | | | | $ | 102,266,734 | | | | | $ | 248,876,317 | | | | | $ | 375,300,000 | | |
| | | | | |
As of December 31, 2018
|
| |||||||||||||||
Fund Name
|
| |
Fund Inception
Date |
| |
Contributed
Capital, Net(1) |
| |
Investments, at
Cost(2) |
| |
Investments, at
Fair Value(3) |
| |||||||||
CDIF, LLC (“CDIF”)
|
| | May 2013 | | | | | 35,054,997 | | | | | | 34,533,954 | | | | | | 43,900,000 | | |
Caliber Diversified Opportunity Fund II, LP (“CDOF II”)
|
| | June 2017 | | | | | 13,819,088 | | | | | | 11,015,551 | | | | | | 21,310,000 | | |
Caliber Fixed Income Fund, LLC (“CFIF”)(4)
|
| | March 2014 | | | | | — | | | | | | — | | | | | | — | | |
Caliber Fixed Income Fund II, LLC (“CFIF II”)
|
| | April 2015 | | | | | 6,664,747 | | | | | | 6,646,542 | | | | | | 6,646,542 | | |
Caliber Fixed Income Fund III, LLC (“CFIF III”)
|
| | April 2018 | | | | | 9,882,515 | | | | | | 9,386,367 | | | | | | 9,386,367 | | |
Caliber Tax Advantage Fund (“CTAF”)
|
| | August 2018 | | | | | 12,870,000 | | | | | | 10,293,908 | | | | | | 10,293,908 | | |
| | | | | | | | 78,291,347 | | | | | | 71,876,322 | | | | | | 91,536,817 | | |
| | |
2018
|
| |
2017
|
| |
Change
|
| |
Change
|
| ||||||||||||
Total revenues
|
| | | $ | 70,672,140 | | | | | $ | 64,419,136 | | | | | $ | 6,253,004 | | | | | | 9.7% | | |
Total expenses
|
| | | | 71,593,143 | | | | | | 63,331,217 | | | | | | 8,261,926 | | | | | | 13.0% | | |
Operating Income
|
| | | | (921,003) | | | | | | 1,087,919 | | | | | | (2,008,922) | | | | | | -184.7% | | |
Total other expenses, net
|
| | | | 12,152,622 | | | | | | 9,593,503 | | | | | | 2,559,119 | | | | | | 26.7% | | |
Net Loss Before Income Taxes
|
| | | | (13,073,625) | | | | | | (8,505,584) | | | | | | (4,568,041) | | | | | | 53.7% | | |
Provision for (benefit from) income taxes
|
| | | | — | | | | | | — | | | | | | — | | | | | | 0.0% | | |
Net Loss
|
| | | | (13,073,625) | | | | | | (8,505,584) | | | | | | (4,568,041) | | | | | | 53.7% | | |
Net loss attributable to noncontrolling interests
|
| | | | (10,080,924) | | | | | | (5,802,121) | | | | | | (4,278,803) | | | | | | 73.7% | | |
Net Loss Attributable to CaliberCos, Inc.
|
| | | $ | (2,992,701) | | | | | $ | (2,703,463) | | | | | $ | (289,238) | | | | | | 10.7% | | |
| | |
Year Ended December 31,
|
| | | | | | | | | | | | | |||||||||
| | |
2018
|
| |
2017
|
| |
Change
|
| |
Change
|
| ||||||||||||
Revenues | | | | | | ||||||||||||||||||||
Fund management
|
| | | | 8,381,850 | | | | | | 3,997,765 | | | | | | 4,384,085 | | | | | | 109.7% | | |
Total revenues
|
| | | | 8,381,850 | | | | | | 3,997,765 | | | | | | 4,384,085 | | | | | | 109.7% | | |
Expenses | | | | | | ||||||||||||||||||||
Operating costs
|
| | | | 6,403,829 | | | | | | 3,309,369 | | | | | | 3,094,460 | | | | | | 93.5% | | |
General and administrative
|
| | | | 2,412,934 | | | | | | 2,202,841 | | | | | | 210,093 | | | | | | 9.5% | | |
Marketing and advertising
|
| | | | 487,814 | | | | | | 272,402 | | | | | | 215,412 | | | | | | 79.1% | | |
Depreciation
|
| | | | 85,783 | | | | | | 98,365 | | | | | | (12,582) | | | | | | -12.8% | | |
Total expenses
|
| | | | 9,390,360 | | | | | | 5,882,977 | | | | | | 3,507,383 | | | | | | 59.6% | | |
Operating Loss
|
| | | | (1,008,510) | | | | | | (1,885,212) | | | | | | 876,702 | | | | | | -46.5% | | |
Other (Income) Expenses | | | | | | ||||||||||||||||||||
Other (income) expenses, net
|
| | | | (28,571) | | | | | | 152,498 | | | | | | (181,069) | | | | | | -118.7% | | |
Interest income
|
| | | | — | | | | | | (856) | | | | | | 856 | | | | | | -100.0% | | |
Interest expense
|
| | | | 939,314 | | | | | | 1,463,763 | | | | | | (524,449) | | | | | | -35.8% | | |
Total other expenses, net
|
| | | | 910,743 | | | | | | 1,615,405 | | | | | | (704,662) | | | | | | -43.6% | | |
Net Loss
|
| | | | (1,919,253) | | | | | | (3,500,617) | | | | | | 1,581,364 | | | | | | -45.2% | | |
| | |
Year Ended December 31,
|
| | | | | | | | | | | | | |||||||||
| | |
2018
|
| |
2017
|
| |
Change
|
| |
Change
|
| ||||||||||||
Revenues | | | | | | | | | | | | | | | | | | | | | | | | | |
Construction and development
|
| | | | 9,425,377 | | | | | | 20,565,534 | | | | | | (11,140,157) | | | | | | -54.2% | | |
Other
|
| | | | 9,399 | | | | | | — | | | | | | 9,399 | | | | | | 100.0% | | |
Total revenues
|
| | | | 9,434,776 | | | | | | 20,565,534 | | | | | | (11,130,758) | | | | | | -54.1% | | |
Expenses | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of sales – construction
|
| | | | | | | | | | | | | | | | | | | | | | | | |
and development
|
| | | | 8,824,608 | | | | | | 18,622,858 | | | | | | (9,798,250) | | | | | | -52.6% | | |
Operating costs
|
| | | | 685,756 | | | | | | 543,337 | | | | | | 142,419 | | | | | | 26.2% | | |
General and administrative
|
| | | | 41,492 | | | | | | 35,609 | | | | | | 5,883 | | | | | | 16.5% | | |
Marketing and advertising
|
| | | | 2,275 | | | | | | 8,904 | | | | | | (6,629) | | | | | | -74.4% | | |
Total expenses
|
| | | | 9,554,131 | | | | | | 19,210,708 | | | | | | (9,656,577) | | | | | | -50.3% | | |
Operating (Loss) Income
|
| | | | (119,355) | | | | | | 1,354,826 | | | | | | (1,474,181) | | | | | | -108.8% | | |
Other Expenses | | | | | | | | | | | | | | | | | | | | | | | | | |
Other expenses
|
| | | | — | | | | | | 9,718 | | | | | | (9,718) | | | | | | -100.0% | | |
Total other expenses
|
| | | | — | | | | | | 9,718 | | | | | | (9,718) | | | | | | -100.0% | | |
Net (Loss) Income
|
| | | | (119,355) | | | | | | 1,345,108 | | | | | | (1,464,463) | | | | | | -108.9% | | |
| | |
Year Ended December 31,
|
| | | | | | | | | | | | | |||||||||
| | |
2018
|
| |
2017
|
| |
Change
|
| |
Change
|
| ||||||||||||
Revenues | | | | | | | | | | | | | | | | | | | | | | | | | |
Property management
|
| | | | 476,381 | | | | | | 700,870 | | | | | | (224,489) | | | | | | -32.0% | | |
Other
|
| | | | 88,329 | | | | | | — | | | | | | 88,329 | | | | | | 100.0% | | |
Total revenues
|
| | | | 564,710 | | | | | | 700,870 | | | | | | (136,160) | | | | | | -19.4% | | |
Expenses | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating costs
|
| | | | 195,699 | | | | | | 677,813 | | | | | | (482,114) | | | | | | -71.1% | | |
General and administrative
|
| | | | 53,221 | | | | | | 87,483 | | | | | | (34,262) | | | | | | -39.2% | | |
Marketing and advertising
|
| | | | 31 | | | | | | — | | | | | | 31 | | | | | | 100.0% | | |
Management fees
|
| | | | 1,075 | | | | | | 880 | | | | | | 195 | | | | | | 22.2% | | |
Total expenses
|
| | | | 250,026 | | | | | | 766,176 | | | | | | (516,150) | | | | | | -67.4% | | |
Net Income (Loss)
|
| | | | 314,684 | | | | | | (65,306) | | | | | | 379,990 | | | | | | -581.9% | | |
| | |
Year Ended December 31,
|
| | | | | | | | | | | | | |||||||||
| | |
2018
|
| |
2017
|
| |
Change
|
| |
Change
|
| ||||||||||||
Revenues | | | | | | | | | | | | | | | | | | | | | | | | | |
Brokerage
|
| | | | 1,892,329 | | | | | | 1,860,411 | | | | | | 31,918 | | | | | | 1.7% | | |
Total revenues
|
| | | | 1,892,329 | | | | | | 1,860,411 | | | | | | 31,918 | | | | | | 1.7% | | |
Expenses | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of sales – brokerage
|
| | | | 1,033,162 | | | | | | 1,445,458 | | | | | | (412,296) | | | | | | -28.5% | | |
Operating costs
|
| | | | 94,941 | | | | | | 15,748 | | | | | | 79,193 | | | | | | 502.9% | | |
General and administrative
|
| | | | 110,390 | | | | | | 124,385 | | | | | | (13,995) | | | | | | -11.3% | | |
Marketing and advertising
|
| | | | 715 | | | | | | 60,003 | | | | | | (59,288) | | | | | | -98.8% | | |
Total expenses
|
| | | | 1,239,208 | | | | | | 1,645,594 | | | | | | (406,386) | | | | | | -24.7% | | |
Operating Income
|
| | | | 653,121 | | | | | | 214,817 | | | | | | 438,304 | | | | | | 204.0% | | |
Other Expenses | | | | | | | | | | | | | | | | | | | | | | | | | |
Other expenses
|
| | | | 160 | | | | | | — | | | | | | 160 | | | | | | 100.0% | | |
Interest expense
|
| | | | 743 | | | | | | 3,478 | | | | | | (2,735) | | | | | | -78.6% | | |
Total other expenses
|
| | | | 903 | | | | | | 3,478 | | | | | | (2,575) | | | | | | -74.0% | | |
Net Income
|
| | | | 652,218 | | | | | | 211,339 | | | | | | 440,879 | | | | | | 208.6% | | |
| | |
Year Ended December 31,
|
| | | | | | | | | | | | | |||||||||
| | |
2018
|
| |
2017
|
| |
Change
|
| |
Change
|
| ||||||||||||
Revenues | | | | | | | | | | | | | | | | | | | | | | | | | |
Hospitality
|
| | | | 50,866,351 | | | | | | 46,283,522 | | | | | | 4,582,829 | | | | | | 9.9% | | |
Total revenues
|
| | | | 50,866,351 | | | | | | 46,283,522 | | | | | | 4,582,829 | | | | | | 9.9% | | |
Expenses | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of sales – hospitality
|
| | | | 20,142,966 | | | | | | 18,185,547 | | | | | | 1,957,419 | | | | | | 10.8% | | |
Operating costs
|
| | | | 10,640,885 | | | | | | 7,545,355 | | | | | | 3,095,530 | | | | | | 41.0% | | |
General and administrative
|
| | | | 3,496,893 | | | | | | 5,110,525 | | | | | | (1,613,632) | | | | | | -31.6% | | |
Marketing and advertising
|
| | | | 3,897,823 | | | | | | 3,398,913 | | | | | | 498,910 | | | | | | 14.7% | | |
Franchise fees
|
| | | | 3,580,300 | | | | | | 3,067,828 | | | | | | 512,472 | | | | | | 16.7% | | |
Management fees
|
| | | | 3,919,837 | | | | | | 2,498,623 | | | | | | 1,421,214 | | | | | | 56.9% | | |
Depreciation
|
| | | | 6,662,663 | | | | | | 5,518,624 | | | | | | 1,144,039 | | | | | | 20.7% | | |
Total expenses
|
| | | | 52,341,367 | | | | | | 45,325,415 | | | | | | 7,015,952 | | | | | | 15.5% | | |
Operating (Loss) Income
|
| | | | (1,475,016) | | | | | | 958,107 | | | | | | (2,433,123) | | | | | | -254.0% | | |
Other (Income) Expenses | | | | | | | | | | | | | | | | | | | | | | | | | |
Other expenses, net
|
| | | | 726,910 | | | | | | 532,391 | | | | | | 194,519 | | | | | | 36.5% | | |
Interest income
|
| | | | (35,301) | | | | | | — | | | | | | (35,301) | | | | | | 100.0% | | |
Interest expense
|
| | | | 9,805,722 | | | | | | 7,786,175 | | | | | | 2,019,547 | | | | | | 25.9% | | |
Total other expenses, net
|
| | | | 10,497,331 | | | | | | 8,318,566 | | | | | | 2,178,765 | | | | | | 26.2% | | |
Net Loss
|
| | | | (11,972,347) | | | | | | (7,360,459) | | | | | | (4,611,888) | | | | | | 62.7% | | |
| | |
Year Ended December 31,
|
| | | | | | | | | | | | | |||||||||
| | |
2018
|
| |
2017
|
| |
Change
|
| |
Change
|
| ||||||||||||
Revenues | | | | | | | | | | | | | | | | | | | | | | | | | |
Real estate sales
|
| | | | 6,289,200 | | | | | | 7,877,470 | | | | | | (1,588,270) | | | | | | -20.2% | | |
Rental income
|
| | | | 8,204,318 | | | | | | 7,613,774 | | | | | | 590,544 | | | | | | 7.8% | | |
Property management
|
| | | | 60,804 | | | | | | — | | | | | | 60,804 | | | | | | 100.0% | | |
Other
|
| | | | 75,675 | | | | | | — | | | | | | 75,675 | | | | | | 100.0% | | |
Total revenues
|
| | | | 14,629,997 | | | | | | 15,491,244 | | | | | | (861,247) | | | | | | -5.6% | | |
Expenses | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of sales – real estate
|
| | | | 5,435,336 | | | | | | 7,085,829 | | | | | | (1,650,493) | | | | | | -23.3% | | |
Operating costs
|
| | | | 4,361,579 | | | | | | 4,218,934 | | | | | | 142,645 | | | | | | 3.4% | | |
General and administrative
|
| | | | 431,494 | | | | | | 609,122 | | | | | | (177,628) | | | | | | -29.2% | | |
Marketing and advertising
|
| | | | 263,180 | | | | | | 158,075 | | | | | | 105,105 | | | | | | 66.5% | | |
Management fees
|
| | | | 1,072,093 | | | | | | 728,129 | | | | | | 343,964 | | | | | | 47.2% | | |
Depreciation
|
| | | | 2,560,219 | | | | | | 2,157,223 | | | | | | 402,996 | | | | | | 18.7% | | |
Impairment
|
| | | | 839,250 | | | | | | 460,906 | | | | | | 378,344 | | | | | | 82.1% | | |
Total expenses
|
| | | | 14,963,151 | | | | | | 15,418,218 | | | | | | (455,067) | | | | | | -3.0% | | |
Operating Income
|
| | | | (333,154) | | | | | | 73,026 | | | | | | (406,180) | | | | | | 391.1% | | |
Other (Income) Expenses | | | | | | | | | | | | | | | | | | | | | | | | | |
Other expenses, net
|
| | | | (179,867) | | | | | | 264,641 | | | | | | 247,271 | | | | | | 93.4% | | |
Interest income
|
| | | | (33,801) | | | | | | (23,571) | | | | | | (10,230) | | | | | | 43.4% | | |
Gain on disposition of real estate
|
| | | | (2,608,061) | | | | | | (1,478,865) | | | | | | (1,129,196) | | | | | | 76.4% | | |
Interest expense
|
| | | | 2,618,240 | | | | | | 2,598,563 | | | | | | 19,677 | | | | | | 0.8% | | |
Total other expenses, net
|
| | | | (203,489) | | | | | | 1,360,768 | | | | | | (872,478) | | | | | | -64.1% | | |
Net Loss
|
| | | | (129,665) | | | | | | (1,287,742) | | | | | | 1,158,077 | | | | | | -89.9% | | |
| | |
Year Ended December 31,
|
| | | | | | | | | | | | | |||||||||
| | |
2018
|
| |
2017
|
| |
Change
|
| |
Change
|
| ||||||||||||
Revenues | | | | | | | | | | | | | | | | | | | | | | | | | |
Rental income
|
| | | | 959,077 | | | | | | 964,115 | | | | | | (5,038) | | | | | | -0.5% | | |
Total revenues
|
| | | | 959,077 | | | | | | 964,115 | | | | | | (5,038) | | | | | | -0.5% | | |
Expenses | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating costs
|
| | | | 550,412 | | | | | | 744,332 | | | | | | (193,920) | | | | | | -26.1% | | |
General and administrative
|
| | | | 292,237 | | | | | | 30,448 | | | | | | 261,789 | | | | | | 859.8% | | |
Marketing and advertising
|
| | | | 40,726 | | | | | | 60,895 | | | | | | (20,169) | | | | | | -33.1% | | |
Management fees
|
| | | | 234,518 | | | | | | 264,604 | | | | | | (30,086) | | | | | | -11.4% | | |
Depreciation
|
| | | | 270,841 | | | | | | 440,375 | | | | | | (169,534) | | | | | | -38.5% | | |
Total expenses
|
| | | | 1,388,734 | | | | | | 1,540,654 | | | | | | (151,920) | | | | | | -9.9% | | |
Operating Loss
|
| | | | (429,657) | | | | | | (576,539) | | | | | | 146,882 | | | | | | -25.5% | | |
Other (Income) Expenses | | | | | | | | | | | | | | | | | | | | | | | | | |
Other expenses, net
|
| | | | 94,119 | | | | | | 17,501 | | | | | | 76,618 | | | | | | 437.8% | | |
Gain on disposition of real estate
|
| | | | (699,222) | | | | | | (492,362) | | | | | | (206,860) | | | | | | 42.0% | | |
Interest expense
|
| | | | 1,309,209 | | | | | | 640,343 | | | | | | 668,866 | | | | | | 104.5% | | |
Total other expenses, net
|
| | | | 704,106 | | | | | | 165,482 | | | | | | 538,624 | | | | | | 325.5% | | |
Net Loss
|
| | | | (1,133,763) | | | | | | (742,021) | | | | | | (391,742) | | | | | | 52.8% | | |
| | |
Year Ended December 31,
|
| | | | | | | | | | | | | |||||||||
| | |
2018
|
| |
2017
|
| |
Change
|
| |
Change
|
| ||||||||||||
Revenues | | | | | | | | | | | | | | | | | | | | | | | | | |
Fund management
|
| | | | — | | | | | | 30,000 | | | | | | (30,000) | | | | | | -100.0% | | |
Total revenues
|
| | | | — | | | | | | 30,000 | | | | | | (30,000) | | | | | | -100.0% | | |
Expenses | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating costs
|
| | | | 636,854 | | | | | | 36,086 | | | | | | 600,768 | | | | | | 1664.8% | | |
General and administrative
|
| | | | 1,620,256 | | | | | | 796,882 | | | | | | 823,374 | | | | | | 103.3% | | |
Marketing and advertising
|
| | | | 76,658 | | | | | | 70,006 | | | | | | 6,652 | | | | | | 9.5% | | |
Management fees
|
| | | | 1,039,150 | | | | | | 771,718 | | | | | | 267,432 | | | | | | 34.7% | | |
Total expenses
|
| | | | 3,372,918 | | | | | | 1,674,692 | | | | | | 1,698,226 | | | | | | 101.4% | | |
Operating Loss
|
| | | | (3,372,918) | | | | | | (1,644,692) | | | | | | (1,728,226) | | | | | | 105.1% | | |
Other (Income) Expenses | | | | | | | | | | | | | | | | | | | | | | | | | |
Other income
|
| | | | — | | | | | | (1,217) | | | | | | 1,217 | | | | | | -100.0% | | |
Income from investments
|
| | | | (2,383,746) | | | | | | (3,807,830) | | | | | | 1,424,084 | | | | | | -37.4% | | |
Interest income
|
| | | | (1,212,541) | | | | | | (1,414,847) | | | | | | 202,306 | | | | | | -14.3% | | |
Interest expense
|
| | | | 2,419,432 | | | | | | 2,649,432 | | | | | | (230,000) | | | | | | -8.7% | | |
Total other income, net
|
| | | | (1,176,855) | | | | | | (2,574,462) | | | | | | 1,397,607 | | | | | | -54.3% | | |
Net (Loss) Income
|
| | | | (2,196,063) | | | | | | 929,770 | | | | | | (3,125,833) | | | | | | -336.2% | | |
| | |
2018
|
| |
2017
|
| ||||||
Hospitality
|
| | | $ | 39,338,449 | | | | | $ | 32,716,015 | | |
Residential
|
| | | | 20,059,553 | | | | | | 16,776,624 | | |
Commercial
|
| | | | 5,428,238 | | | | | | 1,615,000 | | |
Diversified
|
| | | | 79,027,410 | | | | | | 56,128,969 | | |
| | | | $ | 143,853,649 | | | | | $ | 107,236,608 | | |
| | |
2018
|
| |
2017
|
| ||||||
Hospitality
|
| | | $ | 200,346,000 | | | | | $ | 149,699,999 | | |
Residential
|
| | | | 111,572,000 | | | | | | 90,307,900 | | |
Commercial
|
| | | | 62,639,000 | | | | | | 38,564,287 | | |
| | | | $ | 374,557,000 | | | | | $ | 278,572,186 | | |
| | |
2018
|
| |
2017
|
| ||||||
Beginning of year
|
| | | $ | 107,236,609 | | | | | $ | 92,060,634 | | |
Originations
|
| | | | 49,644,702 | | | | | | 27,696,552 | | |
Redemptions
|
| | | | (13,027,662) | | | | | | (12,520,577) | | |
End of year
|
| | | $ | 143,853,650 | | | | | $ | 107,236,609 | | |
| | |
2018
|
| |
2017
|
| ||||||
Beginning of year
|
| | | $ | 278,572,186 | | | | | $ | 204,112,872 | | |
Assets acquired
|
| | | | 29,957,391 | | | | | | 17,943,620 | | |
Construction/Renovation
|
| | | | 13,016,662 | | | | | | 25,421,170 | | |
Market appreciation/depreciation, net
|
| | | | 64,926,964 | | | | | | 42,339,205 | | |
Asset sold
|
| | | | (11,916,203) | | | | | | (11,244,681) | | |
End of year
|
| | | $ | 374,557,000 | | | | | $ | 278,572,186 | | |
| | |
Year Ended December 31,
|
| |||||||||||||||
| | |
2018
|
| |
2017
|
| | | ||||||||||
Net Loss Attributable to CaliberCos Inc.
|
| | | $ | (2,992,701) | | | | | $ | (2,703,463) | | | | | ||||
(1) Add: | | | | | | ||||||||||||||
Interest expense
|
| | | | 1,504,214 | | | | | | 2,562,393 | | | | | ||||
Provision for income taxes
|
| | | | — | | | | | | — | | | | | ||||
Depreciation expense
|
| | | | 334,128 | | | | | | 518,256 | | | | | ||||
Amortization expense
|
| | | | — | | | | | | 41,220 | | | | | ||||
EBITDA
|
| | | | (1,154,359) | | | | | | 418,406 | | | | | ||||
(1) Add: | | | | | | ||||||||||||||
Impairment expense
|
| | | | 839,250 | | | | | | 460,906 | | | | | ||||
Loss on extinguishment of debt
|
| | | | — | | | | | | 40,301 | | | | | ||||
Severance expense
|
| | | | 25,000 | | | | | | 150,000 | | | | | ||||
Share buy back
|
| | | | 48,600 | | | | | | — | | | | | ||||
ESOP
|
| | | | 1,333,000 | | | | | | — | | | | | ||||
Founders income tax reimbursement
|
| | | | 140,000 | | | | | | 200,000 | | | | | ||||
Form 1-A costs
|
| | | | 1,130,486 | | | | | | 1,039,195 | | | | | ||||
Adjusted EBITDA
|
| | | $ | 2,361,977 | | | | | $ | 2,308,808 | | | | |
Entity/Fund
|
| |
Property
|
| |
Total
Construction Cost |
| |
Construction
Start Date |
| |
Construction
Completion Date |
| |
2018
EBITDA |
| ||||||
CHPH, LLC
|
| |
Crown Plaza Hotel Phoenix
Airport |
| | | $ | 11,700,000 | | | |
November 2013
|
| |
December 2016
|
| | | $ | 1,234,995 | | |
Indian Bend Hotel Group, LLC
|
| |
Hampton Inn & Suites
Scottsdale/Riverwalk |
| | | | N/A | | | | N/A | | | N/A | | | | | 1,046,688 | | |
44th & McDowell Hotel Group, LLC
|
| |
Holiday Inn & Suites
Phoenix Airport North |
| | | | 6,063,000 | | | | August 2015 | | | March 2018 | | | | | 970,542 | | |
Tucson East, LLC
|
| | Hilton Tucson East | | | | | 9,500,000 | | | | July 2016 | | | May 2018 | | | | | 468,771 | | |
Elliot 10 Fund, LLC
|
| | Four Points by Sheraton | | | | | 856,700 | | | | January 2019 | | | June 2019 | | | | | (1,463,383) | | |
CH Ocotillo Inv Fund, LLC
|
| | Holiday Inn & Suites Chandler | | | | | N/A | | | | N/A | | | N/A | | | | | (294,170) | | |
47th Street Phoenix Fund, LLC
|
| | Hilton Phoenix Airport | | | | | 352,375 | | | | June 2017 | | | June 2019 | | | | | 3,818,261 | | |
Edgewater Hotel Group, LLC
|
| | Rodeway Inn Edgewater | | | | | 100,000 | | | | April 2019 | | | June 2019 | | | | | (507,100) | | |
SF Alaska, LP
|
| | Salmon Falls Resort | | | | | 400,000 | | | | January 2016 | | | June 2019 | | | | | (813,867) | | |
Uptown Square, LLC
|
| | Uptown Apartments | | | | | 100,000 | | | | April 2014 | | |
December 2017
|
| | | | (8,618) | | |
South Mountain Square, LLC
|
| | South Mountain Apartments | | | | | 291,000 | | | | January 2018 | | | May 2018 | | | | | 411,805 | | |
GC Square, LLC
|
| | GC Square Apartments | | | | | 6,731,500 | | | |
December 2016
|
| | October 2018 | | | | | (48,303) | | |
Palms Weekly Portfolio, LP
|
| | Palms Weekly Apartment Portfolio | | | | | N/A | | | | N/A | | | N/A | | | | | 1,551,715 | | |
CDIF, LLC
|
| | Mountain View Square Apartments | | | | | N/A | | | | N/A | | | N/A | | | | | 2,657,419 | | |
CDIF, LLC
|
| | Treehouse Apartments | | | | | 6,900,000 | | | | March 2014 | | | June 2017 | | | | | 871,815 | | |
CDIF, LLC
|
| | A 24Hr Storage | | | | | N/A | | | | N/A | | | N/A | | | | | 2,697 | | |
CDIF, LLC
|
| | Baywood Square Professional Park | | | | | 325,000 | | | |
September 2015
|
| |
November 2016
|
| | | | 5,514 | | |
Fiesta Tech Owners, LLC
|
| | Fiesta Tech Commercial Center | | | | | N/A | | | | N/A | | | N/A | | | | | (9,980) | | |
1040 VIP, LLC
|
| | 24X7 Automated Storage | | | | | N/A | | | | N/A | | | N/A | | | | | (65,605) | | |
1601 Athol Avenue, LLC
|
| | 24X7 Automated Storage | | | | | N/A | | | | N/A | | | N/A | | | | | (19,014) | | |
Logan Airport Storage, LLC
|
| | Logan Airport Storage | | | | | N/A | | | | N/A | | | N/A | | | | | (73,958) | | |
CH Mesa Holdings, LLC
|
| |
Downtown Mesa Commercial Portfolio
|
| | | | N/A | | | | N/A | | | N/A | | | | | (60,319) | | |
J-25 Johnstown Holdings, LLC
|
| | The Villages at Johnstown | | | | | N/A | | | | N/A | | | N/A | | | | | 666,952 | | |
The Roosevelt I, LLC
|
| | The Roosevelt | | | | | 922,400 | | | | October 2016 | | |
December 2018
|
| | | | (209,406) | | |
Circle Lofts, LLC
|
| | Eclipse | | | | | 7,200,000 | | | | January 2017 | | | July 2019 | | | | | (500) | | |
Saddleback Ranch, LLC
|
| | Saddleback Ranch | | | | | N/A | | | | N/A | | | N/A | | | | $ | — | | |
Name
|
| |
Position
|
| |
Age
|
|
John C. “Chris” Loeffler II | | | Chief Executive Officer and Chairman of the Board | | |
34
|
|
Jennifer Schrader | | | President & Chief Operating Officer and Director | | |
36
|
|
Jade Leung | | | Chief Financial Officer | | |
44
|
|
Roy Bade | | | Executive Vice President Construction and Development | | |
56
|
|
Name
|
| |
Position
|
| |
Salary
($) |
| |
Bonus
($)(a) |
| |
All Other
Compensation ($)(b) |
| |
Total
($) |
| ||||||||||||
Chris Loeffler | | | Chief Executive Officer/Co Founder | | | | | 194,826 | | | | | | 75,805 | | | | | | 100,422 | | | | | | 302,828 | | |
Jennifer Schrader
|
| | President and Chief Operating Officer/Co Founder | | | | | 205,925 | | | | | | 24,041 | | | | | | 82,300 | | | | | | 312,266 | | |
Jade Leung | | | Chief Financial Officer | | | | | 172,066 | | | | | | 4,000 | | | | | | 7,043 | | | | | | 183,109 | | |
Roy Bade | | | Executive Vice President Construction and Development | | | | | 172,066 | | | | | | 24,255 | | | | | | 10,676 | | | | | | 206,998 | | |
Name
|
| |
Grant
Date |
| |
Units
Granted |
| |
Grant Date
Fair Value |
| |||||||||
Jade Leung
|
| | | | 6/30/2018 | | | | | | 650,000* | | | | | $ | 476,450 | | |
Roy Bade
|
| | | | 6/30/2018 | | | | | | 750,000* | | | | | $ | 549,750 | | |
| | |
Shares Beneficially Owned
Prior to Offering(1) |
| | | | | | | |
Shares Beneficially Owned After Offering(2)
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | |
Class A
Common Stock |
| |
Class B
Common Stock |
| |
% Total
Voting Power(3) |
| |
Common
Stock Offered for Sale(4) |
| |
Class A
Common Stock(2) |
| |
Class B
Common Stock(2) |
| |
% Total
Voting Power(2)(3) |
| |||||||||||||||||||||||||||||||||||||||||||||
Name of Beneficial Owner
|
| |
Shares
|
| |
%
|
| |
Shares
|
| |
%
|
| | | | | | | | | | | | | |
Shares
|
| |
%
|
| |
Shares
|
| |
%
|
| | |||||||||||||||||||||||||||||
Named Executive officers and
Directors |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||
Jennifer Schrader(4)(5)
|
| | | | — | | | | | | — | | | | | | 6,239,846 | | | | | | 50.02% | | | | | | 44.49% | | | | | | 623,985 | | | | | | | | | | | | | | | | | | 5,615,861 | | | | | | 50.02% | | | | | | 41.37% | | |
John C. Loeffler, II(4)
|
| | | | | | | | | | | | | | | | 6,234,846 | | | | | | 49.98% | | | | | | 44.46% | | | | | | 623,485 | | | | | | | | | | | | | | | | | | 5,611,361 | | | | | | 49.98% | | | | | | 41.33% | | |
Roy Bade
|
| | | | 868,854(6) | | | | | | 5.35% | | | | | | — | | | | | | — | | | | | | *% | | | | | | 86,885 | | | | | | 781,969(6) | | | | | | 3.23% | | | | | | — | | | | | | — | | | | | | *% | | |
Jade Leung
|
| | | | 650,000(7) | | | | | | 4.02% | | | | | | — | | | | | | — | | | | | | *% | | | | | | 65,000 | | | | | | 585,000(7) | | | | | | 2.43% | | | | | | — | | | | | | — | | | | | | *% | | |
| | | | | | | | | | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Directors and Executive Officers as
a Group (4 Persons)(6) |
| | | | 1,518,854 | | | | | | 8.92% | | | | | | 12,474,692 | | | | | | 100% | | | | | | 89.03% | | | | | | | | | | | | 1,366,969 | | | | | | 8.10% | | | | | | 11,227,222 | | | | | | 100.00% | | | | | | 82.78% | | |
5% Beneficial Owners: Donnie Schrader(5)(8)(9)
|
| | | | 6,117,346 | | | | | | 39.47% | | | | | | — | | | | | | — | | | | | | 4.36% | | | | | | 611,734 | | | | | | 5,505,612 | | | | | | 23.44% | | | | | | — | | | | | | — | | | | | | | | |
Total number of shares of Class A Common Stock offered for the account of all securityholders
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2,011,089 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
December 31,
|
| |||||||||
| | |
2018
|
| |
2017
|
| ||||||
Assets | | | | | | | | | | | | | |
Real estate investments
|
| | | | | | | | | | | | |
Land and land improvements
|
| | | $ | 25,580,075 | | | | | $ | 20,261,083 | | |
Buildings and building improvements
|
| | | | 110,400,125 | | | | | | 91,537,069 | | |
Furniture, fixtures, and equipment
|
| | | | 23,745,343 | | | | | | 19,728,145 | | |
Real estate assets under construction
|
| | | | 1,154,966 | | | | | | 13,523,716 | | |
Real estate assets held for sale
|
| | | | 11,062,577 | | | | | | 1,424,335 | | |
Total real estate investments, at cost
|
| | | | 171,943,086 | | | | | | 146,474,348 | | |
Accumulated depreciation
|
| | | | (17,972,715) | | | | | | (13,764,437) | | |
Total real estate investments, net
|
| | | | 153,970,371 | | | | | | 132,709,911 | | |
Cash
|
| | | | 5,954,795 | | | | | | 6,106,778 | | |
Restricted cash
|
| | | | 4,873,295 | | | | | | 6,656,826 | | |
Accounts receivable, net
|
| | | | 1,311,404 | | | | | | 1,041,984 | | |
Other receivables
|
| | | | 88,542 | | | | | | 89,505 | | |
Notes receivable – related parties
|
| | | | 127,978 | | | | | | 277,978 | | |
Due from related parties
|
| | | | 2,357,796 | | | | | | 3,021,545 | | |
Prepaid and other assets
|
| | | | 3,450,616 | | | | | | 2,874,681 | | |
Total Assets
|
| | | $ | 172,134,797 | | | | | $ | 152,779,208 | | |
Liabilities, Mezzanine Equity, and Stockholders’ (Deficit) Equity | | | | | | | | | | | | | |
Notes payable (net of deferred financing costs of $2,814,976 and $1,949,834 at December 31, 2018 and 2017, respectively)
|
| | | | 122,741,088 | | | | | | 100,946,351 | | |
Notes payable – related parties
|
| | | | 10,643,723 | | | | | | 9,126,978 | | |
Accounts payable
|
| | | | 1,890,981 | | | | | | 4,276,388 | | |
Accrued interest
|
| | | | 1,308,828 | | | | | | 2,302,028 | | |
Accrued share-based payments
|
| | | | 1,381,526 | | | | | | 1,381,526 | | |
Buyback obligation
|
| | | | 13,577,152 | | | | | | — | | |
Accrued expenses
|
| | | | 3,996,216 | | | | | | 3,395,620 | | |
Due to related parties
|
| | | | 2,261,919 | | | | | | 2,009,115 | | |
Advance key money, net
|
| | | | 1,200,000 | | | | | | 1,275,000 | | |
Above-market ground lease, net
|
| | | | 3,887,665 | | | | | | 4,013,072 | | |
Other liabilities
|
| | | | 1,782,680 | | | | | | 1,580,550 | | |
Total Liabilities
|
| | | | 164,671,778 | | | | | | 130,306,628 | | |
Commitments and contingencies | | | | | | | | | | | | | |
Mezzanine equity – Series A convertible, mandatorily redeemable preferred stock, $0.001 par value; 2,564,103 shares authorized and 1,657,396 and 1,386,229 issued and outstanding at December 31, 2018 and 2017, respectively
|
| | | | 3,841,934 | | | | | | 3,180,480 | | |
Stockholders’ (Deficit) Equity | | | | | | | | | | | | | |
Common stock, $0.001 par value; 90,000,000 shares authorized, 27,974,212 and 27,956,212 shares issued and outstanding, respectively at December 31, 2018 and 26,797,477 shares issued and outstanding at December 31, 2017
|
| | | | 27,974 | | | | | | 26,797 | | |
Paid-in capital
|
| | | | 14,172,135 | | | | | | 10,676,358 | | |
Less treasury stock, at cost, 18,000 shares repurchased and 6,221,846 forward repurchase shares
|
| | | | (13,625,752) | | | | | | — | | |
Accumulated deficit
|
| | | | (24,665,638) | | | | | | (21,223,501) | | |
Stockholders’ deficit attributable to CaliberCos Inc.
|
| | | | (24,091,281) | | | | | | (10,520,346) | | |
Stockholders’ equity attributable to noncontrolling interests
|
| | | | 27,712,366 | | | | | | 29,812,446 | | |
Total Stockholders’ Equity
|
| | | | 3,621,085 | | | | | | 19,292,100 | | |
Total Liabilities, Mezzanine Equity, and Stockholders’ (Deficit)
Equity |
| | |
$
|
172,134,797
|
| | | |
$
|
152,779,208
|
| |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2018
|
| |
2017
|
| ||||||
Revenues | | | | | | | | | | | | | |
Hospitality
|
| | | $ | 49,341,339 | | | | | $ | 44,062,107 | | |
Construction and development
|
| | | | 4,630,343 | | | | | | 4,615,982 | | |
Real estate sales
|
| | | | 6,289,200 | | | | | | 7,877,470 | | |
Rental income
|
| | | | 4,968,010 | | | | | | 4,972,803 | | |
Fund management
|
| | | | 4,666,853 | | | | | | 1,661,830 | | |
Property management
|
| | | | 325,113 | | | | | | 485,730 | | |
Brokerage
|
| | | | 303,975 | | | | | | 314,647 | | |
Other
|
| | | | 147,307 | | | | | | 428,567 | | |
Total revenues
|
| | | | 70,672,140 | | | | | | 64,419,136 | | |
Expenses | | | | | | | | | | | | | |
Cost of sales – hospitality
|
| | | | 18,921,957 | | | | | | 16,727,488 | | |
Cost of sales – construction and development
|
| | | | 4,356,164 | | | | | | 4,105,738 | | |
Cost of sales – real estate
|
| | | | 5,327,572 | | | | | | 6,930,938 | | |
Cost of sales – brokerage
|
| | | | 106,572 | | | | | | 54,585 | | |
Operating costs
|
| | | | 19,626,511 | | | | | | 14,432,049 | | |
General and administrative
|
| | | | 5,508,173 | | | | | | 6,871,151 | | |
Marketing and advertising
|
| | | | 4,356,915 | | | | | | 3,530,813 | | |
Franchise fees
|
| | | | 3,563,149 | | | | | | 3,032,198 | | |
Management fees
|
| | | | 1,952,714 | | | | | | 1,621,222 | | |
Depreciation
|
| | | | 7,034,166 | | | | | | 5,564,129 | | |
Impairment
|
| | | | 839,250 | | | | | | 460,906 | | |
Total expenses
|
| | | | 71,593,143 | | | | | | 63,331,217 | | |
Operating (Loss) Income
|
| | | | (921,003) | | | | | | 1,087,919 | | |
Other (Income) Expenses | | | | | | | | | | | | | |
Other expenses, net
|
| | | | 306,530 | | | | | | 638,207 | | |
Interest income
|
| | | | (41,650) | | | | | | (24,261) | | |
Gain on disposition of real estate
|
| | | | — | | | | | | (1,478,865) | | |
Interest expense
|
| | | | 11,887,742 | | | | | | 10,458,422 | | |
Total other expenses, net
|
| | | | 12,152,622 | | | | | | 9,593,503 | | |
Net Loss Before Income Taxes
|
| | | | (13,073,625) | | | | | | (8,505,584) | | |
Provision for (benefit from) income taxes
|
| | | | — | | | | | | — | | |
Net Loss
|
| | | | (13,073,625) | | | | | | (8,505,584) | | |
Net loss attributable to noncontrolling interests
|
| | | | 10,080,924 | | | | | | 5,802,121 | | |
Net Loss Attributable to CaliberCos Inc.
|
| | | $ | (2,992,701) | | | | | $ | (2,703,463) | | |
Basic and diluted net loss per share attributable to common stockholders
|
| | | $ | (0.13) | | | | | $ | (0.12) | | |
Weighted-average basic and diluted common shares outstanding
|
| | | | 27,405,332 | | | | | | 25,299,392 | | |
|
| | | | | |
| | |
CaliberCos Inc.
|
| |
Noncontrolling
Interests |
| |
Total
Stockholders’ Equity |
| |||||||||||||||||||||||||||||||||
| | |
Common Stock
|
| |
Paid in
Capital |
| |
Treasury
Stock |
| |
Accumulated
Deficit |
| ||||||||||||||||||||||||||||||
| | |
Shares
|
| |
Par
Value |
| ||||||||||||||||||||||||||||||||||||
Balances at January 1, 2017
|
| | | | 24,064,751 | | | | | $ | 24,065 | | | | | $ | 7,018,415 | | | | | $ | — | | | | | $ | (18,306,345) | | | | | $ | 30,999,082 | | | | | $ | 19,735,217 | | |
Issuance of common stock
|
| | | | 540,157 | | | | | | 540 | | | | | | 972,569 | | | | | | — | | | | | | — | | | | | | — | | | | | | 973,109 | | |
Settlement of share-based payments
|
| | | | 1,325,324 | | | | | | 1,325 | | | | | | 1,125,200 | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,126,525 | | |
Conversion of notes payable
to common stock |
| | | | 867,245 | | | | | | 867 | | | | | | 1,560,174 | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,561,041 | | |
Distribution to preferred stock holders
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (197,825) | | | | | | — | | | | | | (197,825) | | |
Accretion of mezzanine equity value
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (15,868) | | | | | | — | | | | | | (15,868) | | |
Contributions from noncontrolling interest holders
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 12,015,046 | | | | | | 12,015,046 | | |
Redemptions of noncontrolling interest
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (5,715,524) | | | | | | (5,715,524) | | |
Distributions to noncontrolling interest holders
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,684,037) | | | | | | (1,684,037) | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (2,703,463) | | | | | | (5,802,121) | | | | | | (8,505,584) | | |
Balances at December 31, 2017
|
| | | | 26,797,477 | | | | | | 26,797 | | | | | | 10,676,358 | | | | | | — | | | | | | (21,223,501) | | | | | | 29,812,446 | | | | | | 19,292,100 | | |
Consolidation of VIEs
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 6,614,319 | | | | | | 6,614,319 | | |
Issuance of common stock
|
| | | | 1,029,058 | | | | | | 1,029 | | | | | | 1,865,171 | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,866,200 | | |
Settlement of obligations
|
| | | | 48,840 | | | | | | 48 | | | | | | 82,980 | | | | | | — | | | | | | — | | | | | | — | | | | | | 83,028 | | |
Conversion of
noncontrolling interest to common stock |
| | | | 30,619 | | | | | | 31 | | | | | | 55,910 | | | | | | — | | | | | | — | | | | | | (55,941) | | | | | | — | | |
Conversion of notes payable
to common stock |
| | | | 97,630 | | | | | | 98 | | | | | | 183,805 | | | | | | — | | | | | | — | | | | | | — | | | | | | 183,903 | | |
Repurchases and retirement
of common stock |
| | | | (29,412) | | | | | | (29) | | | | | | (24,971) | | | | | | | | | | | | — | | | | | | — | | | | | | (25,000) | | |
Treasury stock acquired – buyback obligation
|
| | | | — | | | | | | — | | | | | | — | | | | | | (13,625,752) | | | | | | — | | | | | | — | | | | | | (13,625,752) | | |
Equity based compensation expense
|
| | | | — | | | | | | — | | | | | | 1,332,882 | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,332,882 | | |
Distribution to common stock holders
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (7,601) | | | | | | — | | | | | | (7,601) | | |
Distribution to preferred stock holders
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (390,508) | | | | | | — | | | | | | (390,508) | | |
Accretion of mezzanine equity value
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (51,327) | | | | | | — | | | | | | (51,327) | | |
Contributions from noncontrolling interest holders
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 7,904,323 | | | | | | 7,904,323 | | |
Redemptions of noncontrolling interest
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (4,346,024) | | | | | | (4,346,024) | | |
Distributions to noncontrolling interest holders
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (2,135,833) | | | | | | (2,135,833) | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (2,992,701) | | | | | | (10,080,924) | | | | | | (13,073,625) | | |
Balances at December 31, 2018
|
| | | | 27,974,212 | | | | | $ | 27,974 | | | | | $ | 14,172,135 | | | | | $ | (13,625,752) | | | | | $ | (24,665,638) | | | | | $ | 27,712,366 | | | | | $ | 3,621,085 | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2018
|
| |
2017
|
| ||||||
Cash Flows From Operating Activities | | | | | | | | | | | | | |
Net loss
|
| | | $ | (13,073,625) | | | | | $ | (8,505,584) | | |
Adjustments to reconcile net loss to net cash provided by operating activities:
|
| | | | | | | | | | | | |
Depreciation
|
| | | | 7,034,166 | | | | | | 5,564,129 | | |
Amortization of deferred financing costs
|
| | | | 1,991,663 | | | | | | 2,305,174 | | |
Amortization of advance key money
|
| | | | (75,000) | | | | | | (75,000) | | |
Amortization of above-market ground lease
|
| | | | (125,407) | | | | | | (125,409) | | |
Impairment
|
| | | | 839,250 | | | | | | 460,906 | | |
Equity based compensation
|
| | | | 1,332,882 | | | | | | — | | |
Loss on retirement of real estate assets
|
| | | | 472,878 | | | | | | — | | |
Loss on equity method investment
|
| | | | — | | | | | | 67,000 | | |
Loss on extinguishment of debt
|
| | | | — | | | | | | 203,556 | | |
Gain on disposition of real estate
|
| | | | — | | | | | | (1,478,865) | | |
Changes in operating assets and liabilities:
|
| | | | | | | | | | | | |
Real estate assets held for sale
|
| | | | 4,786,172 | | | | | | 5,186,228 | | |
Accounts receivable, net
|
| | | | (269,420) | | | | | | 123,128 | | |
Other receivables
|
| | | | 963 | | | | | | 849,269 | | |
Due from related parties
|
| | | | 663,749 | | | | | | (1,866,271) | | |
Prepaid and other assets
|
| | | | 177,593 | | | | | | 168,609 | | |
Accounts payable
|
| | | | (229,445) | | | | | | 222,600 | | |
Accrued interest
|
| | | | (993,200) | | | | | | (473,861) | | |
Accrued expenses
|
| | | | 1,240,596 | | | | | | 56,087 | | |
Due to related parties
|
| | | | (920,818) | | | | | | 481,133 | | |
Other liabilities
|
| | | | 221,956 | | | | | | 554,396 | | |
Net cash provided by operating activities
|
| | | | 3,074,953 | | | | | | 3,717,225 | | |
Cash Flows From Investing Activities | | | | | | | | | | | | | |
Acquisitions of real estate assets
|
| | | | (20,053,510) | | | | | | — | | |
Investments in real estate assets
|
| | | | (8,064,970) | | | | | | (16,635,780) | | |
Proceeds from disposition of real estate
|
| | | | — | | | | | | 3,015,000 | | |
Proceeds from the settlement of property-related insurance claims
|
| | | | 982,714 | | | | | | 827,646 | | |
Funding of notes receivable – related parties
|
| | | | (100,000) | | | | | | (250,000) | | |
Payment received on notes receivable – related parties
|
| | | | 250,000 | | | | | | 130,272 | | |
Net cash used in investing activities
|
| | | $ | (26,985,766) | | | | | $ | (12,912,862) | | |
Cash Flows From Financing Activities | | | | | | | | | | | | | |
Capital lease payments
|
| | | | (19,826) | | | | | | (13,308) | | |
Payment of deferred financing costs
|
| | | | (3,146,805) | | | | | | (1,503,331) | | |
Payment of loan extinguishment fees
|
| | | | — | | | | | | (666,994) | | |
Proceeds from notes payable
|
| | | | 94,878,271 | | | | | | 43,088,783 | | |
Repayments of notes payable
|
| | | | (72,020,259) | | | | | | (36,656,105) | | |
Proceeds from notes payable – related parties
|
| | | | 4,438,544 | | | | | | 762,000 | | |
Repayments of notes payable – related parties
|
| | | | (5,272,494) | | | | | | (5,501,892) | | |
Proceeds from the issuance of preferred stock
|
| | | | 595,897 | | | | | | 573,617 | | |
Proceeds from the issuance of common stock
|
| | | | 1,921,214 | | | | | | 973,109 | | |
Repurchases and retirement of common stock
|
| | | | (25,000) | | | | | | — | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2018
|
| |
2017
|
| ||||||
Payments of treasury stock – buyback obligation
|
| | | $ | (48,600) | | | | | $ | — | | |
Distributions to preferred stockholders
|
| | | | (390,508) | | | | | | (197,825) | | |
Distributions to common stockholders
|
| | | | (7,601) | | | | | | — | | |
Contributions from noncontrolling interest holders
|
| | | | 7,904,323 | | | | | | 12,015,046 | | |
Redemptions of noncontrolling interests
|
| | | | (4,596,024) | | | | | | (5,465,524) | | |
Distributions to noncontrolling interest holders
|
| | | | (2,235,833) | | | | | | (1,584,037) | | |
Net cash provided by financing activities
|
| | | | 21,975,299 | | | | | | 5,823,539 | | |
Net Decrease in Cash and Restricted Cash
|
| | | | (1,935,514) | | | | | | (3,372,098) | | |
Cash and Restricted Cash at Beginning of Year
|
| | | | 12,763,604 | | | | | | 16,135,702 | | |
Cash and Restricted Cash at End of Year
|
| | | $ | 10,828,090 | | | | | $ | 12,763,604 | | |
Reconciliation of Cash and Restricted Cash | | | | | | | | | | | | | |
Cash at beginning of year
|
| | | | 6,106,778 | | | | | | 3,159,333 | | |
Restricted cash at beginning of year
|
| | | | 6,656,826 | | | | | | 12,976,369 | | |
Cash and restricted cash at beginning of year
|
| | | | 12,763,604 | | | | | | 16,135,702 | | |
Cash at end of year
|
| | | | 5,954,795 | | | | | | 6,106,778 | | |
Restricted cash at end of year
|
| | | | 4,873,295 | | | | | | 6,656,826 | | |
Cash and restricted cash at end of year
|
| | | $ | 10,828,090 | | | | | $ | 12,763,604 | | |
|
Building and building improvements
|
| | 15 – 40 years | |
|
Furniture, fixtures, and equipment
|
| | 3 – 7 years | |
| | |
2018
|
| |||
Assets | | | | | | | |
Cash
|
| | | $ | 1,055,832 | | |
Acquisition deposits
|
| | | | 7,530,000 | | |
Prepaid and other assets
|
| | | | 753,528 | | |
Total Assets
|
| | | $ | 9,339,360 | | |
Liabilities and Noncontrolling Interests | | | | | | | |
Notes payable – related parties
|
| | | $ | 2,350,695 | | |
Accounts payable
|
| | | | 110,927 | | |
Due to related parties
|
| | | | 263,419 | | |
Total Liabilities
|
| | | | 2,725,041 | | |
Noncontrolling interests
|
| | | | 6,614,319 | | |
Total Liabilities and Noncontrolling Interests
|
| | | $ | 9,339,360 | | |
| | |
2018
|
| |
2017
|
| ||||||
Assets | | | | ||||||||||
Real estate investments, net
|
| | | $ | 149,173,326 | | | | | $ | 122,458,216 | | |
Cash
|
| | | | 3,455,205 | | | | | | 3,828,070 | | |
Restricted cash
|
| | | | 4,866,835 | | | | | | 6,620,240 | | |
Accounts receivable, net
|
| | | | 1,224,528 | | | | | | 982,867 | | |
Notes receivable – related parties
|
| | | | 127,978 | | | | | | 277,978 | | |
Due from related parties
|
| | | | 420,244 | | | | | | 420,583 | | |
Prepaid and other assets
|
| | | | 2,688,321 | | | | | | 2,520,623 | | |
Total Assets
|
| | | $ | 161,956,437 | | | | | $ | 137,108,577 | | |
| | |
2018
|
| |
2017
|
| ||||||
Liabilities | | | | ||||||||||
Notes payable, net of deferred financing costs
|
| | | $ | 115,035,544 | | | | | $ | 92,088,579 | | |
Notes payable – related parties
|
| | | | 5,114,413 | | | | | | 254,978 | | |
Accounts payable
|
| | | | 1,315,086 | | | | | | 1,390,652 | | |
Accrued interest
|
| | | | 568,858 | | | | | | 664,322 | | |
Accrued expenses
|
| | | | 2,976,816 | | | | | | 2,932,359 | | |
Due to related parties
|
| | | | 551,803 | | | | | | 340,969 | | |
Advance key money, net
|
| | | | 1,200,000 | | | | | | 1,275,000 | | |
Above-market ground lease, net
|
| | | | 3,887,665 | | | | | | 4,013,072 | | |
Other liabilities
|
| | | | 1,333,885 | | | | | | 1,187,578 | | |
Total Liabilities
|
| | | $ | 131,984,070 | | | | | $ | 104,147,509 | | |
| | |
2018
|
| |||
Real estate investments, at cost: | | | | | | | |
Land
|
| | | $ | 4,559,776 | | |
Building
|
| | | | 22,393,996 | | |
Furniture, Fixtures & Equipment
|
| | | | 1,685,570 | | |
Total purchase price of assets acquired
|
| | | $ | 28,639,342 | | |
| | |
2018
|
| |
2017
|
| ||||||
Prepaid expenses
|
| | | $ | 1,075,754 | | | | | $ | 1,044,609 | | |
Deposits
|
| | | | 779,705 | | | | | | 716,150 | | |
Costs in excess of billings
|
| | | | 3,236 | | | | | | 46,034 | | |
Deferred franchise fees, net
|
| | | | 557,066 | | | | | | 427,952 | | |
Intangibles, net
|
| | | | 263,061 | | | | | | 286,802 | | |
Investments in unconsolidated entities
|
| | | | 570,351 | | | | | | 174,895 | | |
Inventory
|
| | | | 201,443 | | | | | | 178,239 | | |
Total prepaid and other assets
|
| | | $ | 3,450,616 | | | | | $ | 2,874,681 | | |
| | |
2018
|
| |
2017
|
| ||||||
Sales tax payable
|
| | | $ | 545,387 | | | | | $ | 599,868 | | |
Deposits
|
| | | | 387,319 | | | | | | 287,688 | | |
Deferred revenue
|
| | | | 52,827 | | | | | | 41,062 | | |
Tenant improvement allowance
|
| | | | 32,047 | | | | | | — | | |
Capital leases
|
| | | | 315,104 | | | | | | — | | |
Redemption/distribution payable
|
| | | | — | | | | | | 350,000 | | |
Deferred rent liability
|
| | | | 338,521 | | | | | | — | | |
Billings in excess of costs
|
| | | | 89,790 | | | | | | 137,292 | | |
Other
|
| | | | 21,685 | | | | | | 164,640 | | |
Total other liabilities
|
| | | $ | 1,782,680 | | | | | $ | 1,580,550 | | |
| | |
2018
|
| |
2017
|
| |
Interest
Rate |
| |
Original/
Extended Maturity |
| ||||||
Notes Payable | | | | | | | | | | | | | | | | | | | |
Real Estate Loans
|
| | | | | | | | | | | | | | | | | | |
Hampton Inn & Suites Hotel
|
| | | $ | 6,692,868 | | | | | $ | 6,868,347 | | | |
4.50%
|
| | July 2025 | |
Four Points by Marriott Hotel
|
| | | | 11,000,000 | | | | | | — | | | |
Variable
|
| | December 2021 | |
Holiday Inn Ocotillo Hotel
|
| | | | 9,250,000 | | | | | | — | | | |
Variable
|
| | August 2020 | |
Hilton Tucson East Hotel
|
| | | | — | | | | | | 12,730,000 | | | |
10.00%
|
| | June 2018 | |
Hilton Tucson East Hotel
|
| | | | 14,000,000 | | | | | | — | | | |
8.50%
|
| | June 2020 | |
Crowne Plaza Hotel
|
| | | | — | | | | | | 11,522,148 | | | |
Variable
|
| | September 2018 | |
Holiday Inn & Suites Hotel
|
| | | | — | | | | | | 15,375,000 | | | |
Variable
|
| | July 2018 | |
Hilton Phoenix Airport Hotel
|
| | | | — | | | | | | 29,000,000 | | | |
9.00%
|
| | September 2019 | |
Airport Hotel Portfolio
|
| | | | 56,470,000 | | | | | | — | | | |
Variable
|
| | October 2021 | |
GC Square Apartments
|
| | | | 11,000,000 | | | | | | 8,939,000 | | | |
Variable
|
| | November 2020 | |
Palms Apartment Portfolio
|
| | | | 9,437,652 | | | | | | 9,603,918 | | | |
5.28%
|
| | September 2026 | |
Single-family Home Loans
|
| | | | 400,000 | | | | | | 1,519,049 | | | |
10.50%
|
| | On demand | |
Unsecured Borrowing
|
| | | | — | | | | | | 947,500 | | | |
33.00%
|
| | Undefined | |
Total real estate loans
|
| | | | 118,250,520 | | | | | | 96,504,962 | | | | | | | | |
Corporate notes
|
| | | | 5,928,273 | | | | | | 6,383,273 | | | |
10.13% – 12.00%
|
| |
January 2019 –
December 2019 |
|
Convertible corporate notes
|
| | | | 1,377,271 | | | | | | — | | | |
8.25%
|
| |
January 2019 –
December 2019 |
|
Other
|
| | | | — | | | | | | 7,950 | | | |
6.00%
|
| | November 2018 | |
Total Notes Payable
|
| | | | 125,556,064 | | | | | | 102,896,185 | | | | | | | | |
Deferred financing costs, net
|
| | | | (2,814,976) | | | | | | (1,949,834) | | | | | | | | |
Total Notes Payable, Net
|
| | | $ | 122,741,088 | | | | | $ | 100,946,351 | | | | | | | | |
|
2019
|
| | | $ | 8,066,338 | | |
|
2020
|
| | | | 34,626,834 | | |
|
2021
|
| | | | 67,868,152 | | |
|
2022
|
| | | | 418,310 | | |
|
2023
|
| | | | 439,496 | | |
|
Thereafter
|
| | | | 14,136,934 | | |
| | | | | $ | 125,556,064 | | |
|
2019
|
| | | $ | — | | |
|
2020
|
| | | | 127,978 | | |
| | | | | $ | 127,978 | | |
|
2019
|
| | | $ | 5,136,861 | | |
|
2020
|
| | | | 3,854,801 | | |
|
2021
|
| | | | 802,061 | | |
|
2022
|
| | | | — | | |
|
2023
|
| | | | — | | |
|
Thereafter
|
| | | | 850,000 | | |
| | | | | $ | 10,643,723 | | |
| | |
2018
|
| |
2017
|
| ||||||
Current income tax (provision) benefit | | | | | | | | | | | | | |
Federal
|
| | | $ | — | | | | | $ | — | | |
State
|
| | | | — | | | | | | — | | |
Total
|
| | | | — | | | | | | — | | |
Deferred income tax (provision) benefit | | | | | | | | | | | | | |
Federal
|
| | | | (122,282) | | | | | | 912,114 | | |
State
|
| | | | (18,530) | | | | | | (220,823) | | |
Total
|
| | | | (140,812) | | | | | | 691,291 | | |
Adjustment to valuation allowance
|
| | | | 140,812 | | | | | | (691,291) | | |
Total income tax (provision) benefit
|
| | | $ | — | | | | | $ | — | | |
| | |
2018
|
| |
2017
|
| ||||||
U.S. federal statutory tax rate
|
| | | | 21.0% | | | | | | 34.0% | | |
Impact of U.S. Tax Reform
|
| | | | 3.8% | | | | | | -23.2% | | |
Income passed through to noncontrolling interest, federal tax
|
| | | | -16.2% | | | | | | -11.4% | | |
Income passed through to noncontrolling interest, state tax
|
| | | | -2.9% | | | | | | -1.1% | | |
Permanent differences, VIEs
|
| | | | -1.3% | | | | | | -9.6% | | |
State taxes, net of federal benefit
|
| | | | 0.0% | | | | | | 3.2% | | |
Prior period tax return true-up in current year
|
| | | | -3.2% | | | | | | 0.1% | | |
Nondeductible expenses
|
| | | | -0.1% | | | | | | -0.1% | | |
Change in valuation allowance
|
| | | | -1.1% | | | | | | 8.1% | | |
Effective income tax rate
|
| | | | 0.0% | | | | | | 0.0% | | |
| | |
2018
|
| |
2017
|
| ||||||
Deferred tax assets: | | | | | | | | | | | | | |
Net Operating Loss Carryforwards
|
| | | $ | 3,952,750 | | | | | $ | 2,621,856 | | |
Sec 362 Basis Step-up
|
| | | | 458,536 | | | | | | 959,854 | | |
Deferred Compensation
|
| | | | 503,301 | | | | | | 343,599 | | |
Fixed Assets
|
| | | | 380,549 | | | | | | 201,377 | | |
Other
|
| | | | 50,021 | | | | | | 4,018 | | |
Total
|
| | | | 5,345,157 | | | | | | 4,130,704 | | |
Deferred tax liabilities: | | | | | | | | | | | | | |
Passthrough Income/Loss from Partnerships
|
| | | | (1,212,475) | | | | | | (157,538) | | |
Other
|
| | | | (18,704) | | | | | | — | | |
Total
|
| | | | (1,231,179) | | | | | | (157,538) | | |
Valuation Allowance
|
| | | | (4,113,978) | | | | | | (3,973,166) | | |
Net deferred tax assets
|
| | | $ | — | | | | | $ | — | | |
| | |
2018
|
| |
2017
|
| ||||||
Valuation allowance at the beginning of the year
|
| | | $ | 3,973,166 | | | | | | 4,664,457 | | |
Changes in valuation allowance recorded during the year
|
| | | | 140,812 | | | | | | (691,291) | | |
Valuation allowance at the end of the year
|
| | | $ | 4,113,978 | | | | | $ | 3,973,166 | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2018
|
| |
2017
|
| ||||||
Supplemental Disclosure of Cash Flow Information | | | | | | | | | | | | | |
Cash paid for interest, net of capitalized interest of $444,539 and $1,132,898 for the years ended December 31, 2018 and 2017, respectively
|
| | | $ | 11,424,168 | | | | | $ | 7,908,233 | | |
Cash paid for income taxes
|
| | | $ | — | | | | | $ | — | | |
Supplemental Disclosures of Non-cash Investing and Financing Activities | | | | | | | | | | | | | |
Investments in real estate assets included in accounts payable
|
| | | $ | 303,038 | | | | | $ | 2,541,913 | | |
Investments in real estate assets included in due to related parties
|
| | | $ | 910,203 | | | | | $ | — | | |
Real estate investments reclassified to held for sale
|
| | | $ | 14,424,414 | | | | | $ | 1,417,376 | | |
Deferred financing costs included in accrued expenses
|
| | | $ | 220,000 | | | | | $ | 510,000 | | |
Exchange of common stock for professional services included in accounts
payable |
| | | $ | 28,014 | | | | | $ | — | | |
Conversion of noncontrolling interests to common stock
|
| | | $ | 55,941 | | | | | $ | — | | |
Conversion of notes payable to preferred stock
|
| | | $ | 14,230 | | | | | $ | 975,651 | | |
Conversion of notes payable to common stock
|
| | | $ | 183,903 | | | | | $ | 1,561,041 | | |
Buyback obligation
|
| | | $ | 13,577,152 | | | | | $ | — | | |
Settlement of share-based payments
|
| | | $ | — | | | | | $ | 1,126,525 | | |
Accrued redemption of noncontrolling interest
|
| | | $ | — | | | | | $ | 250,000 | | |
Accrued noncontrolling interest distribution
|
| | | $ | — | | | | | $ | 100,000 | | |
Accretion of mezzanine equity value
|
| | | $ | 51,327 | | | | | $ | 15,858 | | |
|
2019
|
| | | $ | 190,400 | | |
|
2020
|
| | | | 470,783 | | |
|
2021
|
| | | | 520,886 | | |
|
2022
|
| | | | 483,135 | | |
|
2023
|
| | | | 449,446 | | |
|
Thereafter
|
| | | | 1,098,960 | | |
| | | | | $ | 3,213,610 | | |
| | |
Lease
Payments |
| |
Intangible
Amortization |
| |
Net Lease
Expense |
| |||||||||
2019
|
| | | $ | 1,028,672 | | | | | $ | (125,409) | | | | | $ | 903,263 | | |
2020
|
| | | | 1,028,672 | | | | | | (125,409) | | | | | | 903,263 | | |
2021
|
| | | | 1,028,672 | | | | | | (125,409) | | | | | | 903,263 | | |
2022
|
| | | | 1,028,672 | | | | | | (125,409) | | | | | | 903,263 | | |
2023
|
| | | | 1,028,672 | | | | | | (125,409) | | | | | | 903,263 | | |
Thereafter
|
| | | | 29,487,016 | | | | | | (3,260,620) | | | | | | 26,226,396 | | |
| | | | $ | 34,630,376 | | | | | $ | (3,887,665) | | | | | $ | 30,742,711 | | |
|
2019
|
| | | $ | 260,412 | | |
|
2020
|
| | | | 276,725 | | |
|
2021
|
| | | | 316,793 | | |
|
2022
|
| | | | 314,175 | | |
|
2023
|
| | | | 311,578 | | |
|
Thereafter
|
| | | | 12,097,469 | | |
| | | | | $ | 13,577,152 | | |
| | |
Shares
|
| |||
December 31, 2016
|
| | | | 1,239,804 | | |
Warrants issued
|
| | | | — | | |
Warrants exercised
|
| | | | (30,617) | | |
December 31, 2017
|
| | | | 1,209,187 | | |
Warrants issued
|
| | | | — | | |
Warrants exercised
|
| | | | (663,803) | | |
Warrants expired
|
| | | | (333,489) | | |
December 31, 2018
|
| | | | 211,895 | | |
| | |
2018
|
| |
2017
|
| ||||||
Weighted-average remaining term (in months)
|
| | | | 15.52 | | | | | | 9.96 | | |
Weighted-average exercise price
|
| | | $ | 1.93 | | | | | $ | 1.87 | | |
| | |
2018
|
| |||
Expected term (in years)
|
| | | | 6.46 | | |
Volatility
|
| | | | 30.00% | | |
Dividend yield
|
| | | | 0.00% | | |
Risk-free rate
|
| | | | 3.05% | | |
Grant date fair value
|
| | | $ | 0.73 | | |
| | |
Stock
Options |
| |
Weighted-
Average Exercise Price |
| |
Weighted-
Average Remaining Contractual Term (Years) |
| |
Aggregate
Intrinsic Value |
| ||||||||||||
Outstanding, January 1, 2018
|
| | | | — | | | | | $ | — | | | | | | — | | | | | $ | — | | |
Granted
|
| | | | 3,113,597 | | | | | | 1.99 | | | | | | — | | | | | | — | | |
Forfeited
|
| | | | (108,773) | | | | | | 1.99 | | | | | | — | | | | | | — | | |
Outstanding, December 31, 2018
|
| | | | 3,004,824 | | | | | $ | 1.99 | | | | | | 6.46 | | | | | $ | 1,332,882 | | |
|
2019
|
| | | $ | — | | |
|
2020
|
| | | | 1,615,344 | | |
|
2021
|
| | | | 1,565,136 | | |
|
2022
|
| | | | 661,454 | | |
| | | | | $ | 3,841,934 | | |
| | |
2018
|
| |
2017
|
| ||||||
Net loss attributable to CaliberCos Inc.
|
| | | $ | (2,992,701) | | | | | $ | (2,703,463) | | |
Preferred stock dividends
|
| | | | (390,508) | | | | | | (197,825) | | |
Accretion of mezzanine equity value
|
| | | | (51,327) | | | | | | (15,868) | | |
Net loss attributable to common shareholders of CaliberCos Inc.
|
| | | $ | (3,434,536) | | | | | $ | (2,917,156) | | |
Weighted-average common shares outstanding
|
| | | | 27,405,332 | | | | | | 25,299,392 | | |
Basic and diluted net loss per share attributable to common shareholders
|
| | | $ | (0.13) | | | | | $ | (0.12) | | |
| | |
2018
|
| |
2017
|
| ||||||
Additional common shares, if warrants were exercised
|
| | | | 211,895 | | | | | | 1,209,187 | | |
Additional common shares, if preferred shares were converted
|
| | | | 2,071,745 | | | | | | 1,732,786 | | |
Additional common shares, if stock options were exercised
|
| | | | 3,004,824 | | | | | | — | | |
| | | | | 5,288,464 | | | | | | 2,941,973 | | |
| | |
December 31, 2018
|
| |
December 31, 2017
|
| ||||||||||||||||||
| | |
Carrying Value
|
| |
Fair Value
|
| |
Carrying Value
|
| |
Fair Value
|
| ||||||||||||
Notes Payable | | | | | | | | | | | | | | | | | | | | | | | | | |
Hampton Inn & Suites Hotel
|
| | | $ | 6,693,000 | | | | | $ | 5,806,000 | | | | | $ | 6,868,347 | | | | | $ | 6,601,000 | | |
Four Points by Marriott Hotel
|
| | | $ | 11,000,000 | | | | | $ | 10,770,000 | | | | | $ | — | | | | | $ | — | | |
Hilton Tucson East Hotel
|
| | | $ | 14,000,000 | | | | | $ | 14,000,000 | | | | | $ | 12,730,000 | | | | | $ | 12,611,000 | | |
Palms Apartment Portfolio
|
| | | $ | 9,438,000 | | | | | $ | 8,413,000 | | | | | $ | 9,603,918 | | | | | $ | 9,012,000 | | |
| | |
Year Ended December 31, 2018
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | |
Real Estate Services
|
| |
Real Estate Operations
|
| |
Eliminations
|
| |
CaliberCos Inc.
& Subsidiaries |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | |
Fund
Management |
| |
Construction &
Development |
| |
Property
Management |
| |
Real Estate
Brokerage |
| |
Total
|
| |
Hospitality
|
| |
Residential
|
| |
Commercial
|
| |
Diversified
|
| |
Total
|
| |
Non-
consolidated |
| |
Intercompany
|
| ||||||||||||||||||||||||||||||||||||||||||
Revenues | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Hospitality
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 50,866,351 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 50,866,351 | | | | | $ | (1,525,012) | | | | | $ | — | | | | | $ | 49,341,339 | | |
Construction and
development |
| | | | — | | | | | | 9,425,377 | | | | | | — | | | | | | — | | | | | | 9,425,377 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (4,795,034) | | | | | | 4,630,343 | | |
Real estate sales
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 6,289,200 | | | | | | — | | | | | | — | | | | | | 6,289,200 | | | | | | — | | | | | | — | | | | | | 6,289,200 | | |
Rental income
|
| | | | — | | | | | | — | | | | | | 854 | | | | | | — | | | | | | 854 | | | | | | — | | | | | | 8,204,318 | | | | | | 959,077 | | | | | | — | | | | | | 9,163,395 | | | | | | (4,196,239) | | | | | | — | | | | | | 4,968,010 | | |
Fund management
|
| | | | 8,381,850 | | | | | | — | | | | | | — | | | | | | — | | | | | | 8,381,850 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (3,714,997) | | | | | | 4,666,853 | | |
Property management
|
| | | | — | | | | | | — | | | | | | 476,381 | | | | | | — | | | | | | 476,381 | | | | | | — | | | | | | 60,804 | | | | | | — | | | | | | — | | | | | | 60,804 | | | | | | (23,442) | | | | | | (188,630) | | | | | | 325,113 | | |
Brokerage
|
| | | | — | | | | | | — | | | | | | — | | | | | | 1,892,329 | | | | | | 1,892,329 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,588,354) | | | | | | 303,975 | | |
Other
|
| | | | — | | | | | | 9,399 | | | | | | 87,475 | | | | | | — | | | | | | 96,874 | | | | | | — | | | | | | 75,675 | | | | | | — | | | | | | — | | | | | | 75,675 | | | | | | (25,242) | | | | | | — | | | | | | 147,307 | | |
Total revenues
|
| | | | 8,381,850 | | | | | | 9,434,776 | | | | | | 564,710 | | | | | | 1,892,329 | | | | | | 20,273,665 | | | | | | 50,866,351 | | | | | | 14,629,997 | | | | | | 959,077 | | | | | | — | | | | | | 66,455,425 | | | | | | (5,769,935) | | | | | | (10,287,015) | | | | | | 70,672,140 | | |
Expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of sales – hospitality
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 20,142,966 | | | | | | — | | | | | | — | | | | | | — | | | | | | 20,142,966 | | | | | | (1,221,009) | | | | | | — | | | | | | 18,921,957 | | |
Cost of sales – construction and
development |
| | | | — | | | | | | 8,824,608 | | | | | | — | | | | | | — | | | | | | 8,824,608 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (4,468,444) | | | | | | 4,356,164 | | |
Cost of sales – real estate
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 5,435,336 | | | | | | — | | | | | | — | | | | | | 5,435,336 | | | | | | — | | | | | | (107,764) | | | | | | 5,327,572 | | |
Cost of sales – brokerage
|
| | | | — | | | | | | — | | | | | | — | | | | | | 1,033,162 | | | | | | 1,033,162 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (926,590) | | | | | | 106,572 | | |
Operating costs
|
| | | | 6,403,829 | | | | | | 685,756 | | | | | | 195,699 | | | | | | 94,941 | | | | | | 7,380,225 | | | | | | 10,640,885 | | | | | | 4,361,579 | | | | | | 550,412 | | | | | | 636,854 | | | | | | 16,189,730 | | | | | | (3,472,544) | | | | | | (470,900) | | | | | | 19,626,511 | | |
General and administrative
|
| | | | 2,412,934 | | | | | | 41,492 | | | | | | 53,221 | | | | | | 110,390 | | | | | | 2,618,037 | | | | | | 3,496,893 | | | | | | 431,494 | | | | | | 292,237 | | | | | | 1,620,256 | | | | | | 5,840,880 | | | | | | (2,429,284) | | | | | | (521,460) | | | | | | 5,508,173 | | |
Marketing and advertising
|
| | | | 487,814 | | | | | | 2,275 | | | | | | 31 | | | | | | 715 | | | | | | 490,835 | | | | | | 3,897,823 | | | | | | 263,180 | | | | | | 40,726 | | | | | | 76,658 | | | | | | 4,278,387 | | | | | | (412,307) | | | | | | — | | | | | | 4,356,915 | | |
Franchise fees
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,580,300 | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,580,300 | | | | | | (17,151) | | | | | | — | | | | | | 3,563,149 | | |
Management fees
|
| | | | — | | | | | | — | | | | | | 1,075 | | | | | | — | | | | | | 1,075 | | | | | | 3,919,837 | | | | | | 1,072,093 | | | | | | 234,518 | | | | | | 1,039,150 | | | | | | 6,265,598 | | | | | | (2,203,909) | | | | | | (2,110,050) | | | | | | 1,952,714 | | |
Depreciation
|
| | | | 85,783 | | | | | | — | | | | | | — | | | | | | — | | | | | | 85,783 | | | | | | 6,662,663 | | | | | | 2,560,219 | | | | | | 270,841 | | | | | | — | | | | | | 9,493,723 | | | | | | (2,315,620) | | | | | | (229,720) | | | | | | 7,034,166 | | |
Impairment
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 839,250 | | | | | | — | | | | | | — | | | | | | 839,250 | | | | | | — | | | | | | — | | | | | | 839,250 | | |
Total expenses
|
| | | | 9,390,360 | | | | | | 9,554,131 | | | | | | 250,026 | | | | | | 1,239,208 | | | | | | 20,433,725 | | | | | | 52,341,367 | | | | | | 14,963,151 | | | | | | 1,388,734 | | | | | | 3,372,918 | | | | | | 72,066,170 | | | | | | (12,071,824) | | | | | | (8,834,928) | | | | | | 71,593,143 | | |
Operating Income (Loss)
|
| | | | (1,008,510) | | | | | | (119,355) | | | | | | 314,684 | | | | | | 653,121 | | | | | | (160,060) | | | | | | (1,475,016) | | | | | | (333,154) | | | | | | (429,657) | | | | | | (3,372,918) | | | | | | (5,610,745) | | | | | | 6,301,889 | | | | | | (1,452,087) | | | | | | (921,003) | | |
Other (Income) Expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Other (income) expenses, net
|
| | | | (28,571) | | | | | | — | | | | | | — | | | | | | 160 | | | | | | (28,411) | | | | | | 726,910 | | | | | | (179,867) | | | | | | 94,119 | | | | | | — | | | | | | 641,162 | | | | | | (36,374) | | | | | | (269,847) | | | | | | 306,530 | | |
Income from investments
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (2,383,746) | | | | | | (2,383,746) | | | | | | 2,383,746 | | | | | | — | | | | | | — | | |
Interest income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (35,301) | | | | | | (33,801) | | | | | | — | | | | | | (1,212,541) | | | | | | (1,281,643) | | | | | | 1,212,706 | | | | | | 27,287 | | | | | | (41,650) | | |
Gain on disposition of real estate
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (2,608,061) | | | | | | (699,222) | | | | | | — | | | | | | (3,307,283) | | | | | | 3,307,283 | | | | | | — | | | | | | — | | |
Interest expense
|
| | | | 939,314 | | | | | | — | | | | | | — | | | | | | 743 | | | | | | 940,057 | | | | | | 9,805,722 | | | | | | 2,618,240 | | | | | | 1,309,209 | | | | | | 2,419,432 | | | | | | 16,152,603 | | | | | | (5,088,708) | | | | | | (116,210) | | | | | | 11,887,742 | | |
Total other expenses, net
|
| | | | 910,743 | | | | | | — | | | | | | — | | | | | | 903 | | | | | | 911,646 | | | | | | 10,497,331 | | | | | | (203,489) | | | | | | 704,106 | | | | | | (1,176,855) | | | | | | 9,821,093 | | | | | | 1,778,653 | | | | | | (358,770) | | | | | | 12,152,622 | | |
Net Income (Loss)
|
| | | $ | (1,919,253) | | | | | $ | (119,355) | | | | | $ | 314,684 | | | | | $ | 652,218 | | | | | $ | (1,071,706) | | | | | $ | (11,972,347) | | | | | $ | (129,665) | | | | | $ | (1,133,763) | | | | | $ | (2,196,063) | | | | | $ | (15,431,838) | | | | | $ | 4,523,236 | | | | | $ | (1,093,317) | | | | | $ | (13,073,625) | | |
|
| | |
December 31, 2018
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total real estate investments, at cost
|
| | | $ | 402,130 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 402,130 | | | | | $ | 154,462,298 | | | | | $ | 68,002,488 | | | | | $ | 23,966,138 | | | | | $ | 71,205 | | | | | $ | 246,502,129 | | | | | $ | 71,925,499 | | | | | $ | (146,886,672) | | | | | $ | 171,943,086 | | |
Total Assets
|
| | | $ | 6,235,856 | | | | | $ | 2,235,829 | | | | | $ | 39,161 | | | | | $ | 380,220 | | | | | $ | 8,891,066 | | | | | $ | 155,924,741 | | | | | $ | 65,489,911 | | | | | $ | 25,485,971 | | | | | $ | 74,962,350 | | | | | $ | 321,862,973 | | | | | $ | (143,528,943) | | | | | $ | (15,090,299) | | | | | $ | 172,134,797 | | |
|
| | |
Year Ended December 31, 2017
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | |
Real Estate Services
|
| |
Real Estate Operations
|
| |
Eliminations
|
| |
CaliberCos Inc.
& Subsidiaries |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | |
Fund
Management |
| |
Construction &
Development |
| |
Property
Management |
| |
Real Estate
Brokerage |
| |
Total
|
| |
Hospitality
|
| |
Residential
|
| |
Commercial
|
| |
Diversified
|
| |
Total
|
| |
Non-
consolidated |
| |
Intercompany
|
| ||||||||||||||||||||||||||||||||||||||||||
Revenues | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Hospitality
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 46,283,522 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 46,283,522 | | | | | $ | (2,221,415) | | | | | $ | — | | | | | $ | 44,062,107 | | |
Construction and
development |
| | | | — | | | | | | 20,565,534 | | | | | | — | | | | | | — | | | | | | 20,565,534 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (15,949,552) | | | | | | 4,615,982 | | |
Real estate sales
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 7,877,470 | | | | | | — | | | | | | — | | | | | | 7,877,470 | | | | | | — | | | | | | — | | | | | | 7,877,470 | | |
Rental income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 7,613,774 | | | | | | 964,115 | | | | | | — | | | | | | 8,577,889 | | | | | | (3,605,086) | | | | | | — | | | | | | 4,972,803 | | |
Fund management
|
| | | | 3,997,765 | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,997,765 | | | | | | — | | | | | | — | | | | | | — | | | | | | 30,000 | | | | | | 30,000 | | | | | | (30,000) | | | | | | (1,907,368) | | | | | | 2,090,397 | | |
Property management
|
| | | | — | | | | | | — | | | | | | 700,870 | | | | | | — | | | | | | 700,870 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (215,140) | | | | | | 485,730 | | |
Brokerage
|
| | | | — | | | | | | — | | | | | | — | | | | | | 1,860,411 | | | | | | 1,860,411 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,545,764) | | | | | | 314,647 | | |
Total revenues
|
| | | | 3,997,765 | | | | | | 20,565,534 | | | | | | 700,870 | | | | | | 1,860,411 | | | | | | 27,124,580 | | | | | | 46,283,522 | | | | | | 15,491,244 | | | | | | 964,115 | | | | | | 30,000 | | | | | | 62,768,881 | | | | | | (5,856,501) | | | | | | (19,617,824) | | | | | | 64,419,136 | | |
Expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of sales – hospitality
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 18,185,547 | | | | | | — | | | | | | — | | | | | | — | | | | | | 18,185,547 | | | | | | (1,458,059) | | | | | | — | | | | | | 16,727,488 | | |
Cost of sales – construction and
development |
| | | | — | | | | | | 18,622,858 | | | | | | — | | | | | | — | | | | | | 18,622,858 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (14,517,120) | | | | | | 4,105,738 | | |
Cost of sales – real estate
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 7,085,829 | | | | | | — | | | | | | — | | | | | | 7,085,829 | | | | | | — | | | | | | (154,891) | | | | | | 6,930,938 | | |
Cost of sales – brokerage
|
| | | | — | | | | | | — | | | | | | — | | | | | | 1,445,458 | | | | | | 1,445,458 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,390,873) | | | | | | 54,585 | | |
Operating costs
|
| | | | 3,309,369 | | | | | | 543,337 | | | | | | 677,813 | | | | | | 15,748 | | | | | | 4,546,267 | | | | | | 7,545,355 | | | | | | 4,218,934 | | | | | | 744,332 | | | | | | 36,086 | | | | | | 12,544,707 | | | | | | (2,632,789) | | | | | | (26,136) | | | | | | 14,432,049 | | |
General and administrative
|
| | | | 2,202,841 | | | | | | 35,609 | | | | | | 87,483 | | | | | | 124,385 | | | | | | 2,450,318 | | | | | | 5,110,525 | | | | | | 609,122 | | | | | | 30,448 | | | | | | 796,882 | | | | | | 6,546,977 | | | | | | (1,645,146) | | | | | | (480,998) | | | | | | 6,871,151 | | |
Marketing and advertising
|
| | | | 272,402 | | | | | | 8,904 | | | | | | — | | | | | | 60,003 | | | | | | 341,309 | | | | | | 3,398,913 | | | | | | 158,075 | | | | | | 60,895 | | | | | | 70,006 | | | | | | 3,687,889 | | | | | | (498,385) | | | | | | — | | | | | | 3,530,813 | | |
Franchise fees
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,067,828 | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,067,828 | | | | | | (35,630) | | | | | | — | | | | | | 3,032,198 | | |
Management fees
|
| | | | — | | | | | | — | | | | | | 880 | | | | | | — | | | | | | 880 | | | | | | 2,498,623 | | | | | | 728,129 | | | | | | 264,604 | | | | | | 771,718 | | | | | | 4,263,074 | | | | | | (1,292,351) | | | | | | (1,350,381) | | | | | | 1,621,222 | | |
Depreciation
|
| | | | 98,365 | | | | | | — | | | | | | — | | | | | | — | | | | | | 98,365 | | | | | | 5,518,624 | | | | | | 2,157,223 | | | | | | 440,375 | | | | | | — | | | | | | 8,116,222 | | | | | | (2,481,943) | | | | | | (168,515) | | | | | | 5,564,129 | | |
Impairment
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 460,906 | | | | | | — | | | | | | — | | | | | | 460,906 | | | | | | — | | | | | | — | | | | | | 460,906 | | |
Total expenses
|
| | | | 5,882,977 | | | | | | 19,210,708 | | | | | | 766,176 | | | | | | 1,645,594 | | | | | | 27,505,455 | | | | | | 45,325,415 | | | | | | 15,418,218 | | | | | | 1,540,654 | | | | | | 1,674,692 | | | | | | 63,958,979 | | | | | | (10,044,303) | | | | | | (18,088,914) | | | | | | 63,331,217 | | |
Operating Income (Loss)
|
| | | | (1,885,212) | | | | | | 1,354,826 | | | | | | (65,306) | | | | | | 214,817 | | | | | | (380,875) | | | | | | 958,107 | | | | | | 73,026 | | | | | | (576,539) | | | | | | (1,644,692) | | | | | | (1,190,098) | | | | | | 4,187,802 | | | | | | (1,528,910) | | | | | | 1,087,919 | | |
Other (Income) Expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Other (income) expenses, net
|
| | | | 152,498 | | | | | | 9,718 | | | | | | — | | | | | | — | | | | | | 162,216 | | | | | | 532,391 | | | | | | 264,641 | | | | | | 17,501 | | | | | | (1,217) | | | | | | 813,316 | | | | | | (315,784) | | | | | | (21,541) | | | | | | 638,207 | | |
Income from investments
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (3,807,830) | | | | | | (3,807,830) | | | | | | 3,807,830 | | | | | | — | | | | | | — | | |
Interest income
|
| | | | (856) | | | | | | — | | | | | | — | | | | | | — | | | | | | (856) | | | | | | — | | | | | | (23,571) | | | | | | — | | | | | | (1,414,847) | | | | | | (1,438,418) | | | | | | 1,414,157 | | | | | | 856 | | | | | | (24,261) | | |
Gain on deposition of real estate
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,478,865) | | | | | | (492,362) | | | | | | — | | | | | | (1,971,227) | | | | | | 492,362 | | | | | | — | | | | | | (1,478,865) | | |
Interest expense
|
| | | | 1,463,763 | | | | | | — | | | | | | — | | | | | | 3,478 | | | | | | 1,467,241 | | | | | | 7,786,175 | | | | | | 2,598,563 | | | | | | 640,343 | | | | | | 2,649,432 | | | | | | 13,674,513 | | | | | | (4,559,136) | | | | | | (124,196) | | | | | | 10,458,422 | | |
Total other expenses, net
|
| | | | 1,615,405 | | | | | | 9,718 | | | | | | — | | | | | | 3,478 | | | | | | 1,628,601 | | | | | | 8,318,566 | | | | | | 1,360,768 | | | | | | 165,482 | | | | | | (2,574,462) | | | | | | 7,270,354 | | | | | | 839,429 | | | | | | (144,881) | | | | | | 9,593,503 | | |
Net Income (Loss)
|
| | | $ | (3,500,617) | | | | | $ | 1,345,108 | | | | | $ | (65,306) | | | | | $ | 211,339 | | | | | $ | (2,009,476) | | | | | $ | (7,360,459) | | | | | $ | (1,287,742) | | | | | $ | (742,021) | | | | | $ | 929,770 | | | | | $ | (8,460,452) | | | | | $ | 3,348,373 | | | | | $ | (1,384,029) | | | | | $ | (8,505,584) | | |
|
| | |
December 31, 2017
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total real estate investments, at cost
|
| | | $ | 587,277 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 587,277 | | | | | $ | 125,329,509 | | | | | $ | 66,841,452 | | | | | $ | 22,008,704 | | | | | $ | — | | | | | $ | 214,179,665 | | | | | $ | (65,674,328) | | | | | $ | (2,618,266) | | | | | $ | 146,474,348 | | |
Total Assets
|
| | | $ | 3,966,716 | | | | | $ | 4,737,557 | | | | | $ | 68,196 | | | | | $ | 138,567 | | | | | $ | 8,911,036 | | | | | $ | 124,804,080 | | | | | $ | 68,062,361 | | | | | $ | 24,075,191 | | | | | $ | 52,378,056 | | | | | $ | 269,319,688 | | | | | $ | (118,603,267) | | | | | $ | (6,848,249) | | | | | $ | 152,779,208 | | |
|
|
Exhibit
Number |
| |
Exhibit Description (hyperlink)
|
| |
Filed
Herewith |
| |
Form
|
| |
File No
|
| |
Exhibit
|
| |
Filing Date
|
|
| 6.7 | | | Executive Employment Agreement dated January 1, 2019, by and among the Company and Roy Bade | | | | | | | | | | | | |||||
| 6.8 | | | Executive Employment Agreement dated January 1, 2019, by and among the Company and Jade Leung | | | | | | | | | | | | |||||
| 11.1 | | | Consent of Marcum LLP | | | | | | | | |||||||||
| 12.1 | | | Opinion of Manatt, Phelps & Phillips, LLP | | | | | | | | |||||||||
| 13.1 | | | “Testing the Waters” Material | | |
*
|
| | | | |
Exhibit 2.3
AMENDMENT NO. 1 TO
BYLAWS
OF
CaliberCos Inc. (the “Corporation”)
Section 4 of ARTICLE VII of the Bylaws of the Corporation adopted by the Corporation on June 7, 2018 is hereby amended and restated in its entirety to read as follows:
Section 4. Forum Selection. Unless the Corporation consents in writing to the selection of an alternative forum, the Court of Chancery of the State of Delaware shall be the sole and exclusive forum for (i) any derivative action or proceeding brought on behalf of the Corporation, (ii) any action asserting a claim of breach of a fiduciary duty owed by any director, officer or other employee of the Corporation to the Corporation or the Corporation’s stockholders, (iii) any action asserting a claim arising pursuant to any provision of the Delaware General Corporation Law, or (iv) any action asserting a claim governed by the internal affairs doctrine. Any person or entity purchasing or otherwise acquiring any interest in shares of capital stock of the Corporation shall be deemed to have notice of and consented to the provisions of this bylaw. Notwithstanding the foregoing, this exclusive forum provision shall not apply to actions arising under either the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934.
IN WITNESS WHEREOF, this Amendment No. 1 to the Bylaws of the Corporation is hereby executed as of this 17th day of September, 2019.
CALIBERCOS INC., a Delaware corporation | ||
By: | /s/ John C. Loeffler, II | |
John C. Loeffler, II, Chief Executive Officer |
Exhibit 11.1
Independent Registered Public Accounting Firm’s Consent
We consent to the inclusion in this Offering Statement of CaliberCos Inc. on Form 1-A Amendment #2 [File No. 024-11016] of our report dated April 9, 2019 with respect to our audits of the consolidated financial statements of CaliberCos Inc. and Subsidiaries as of December 31, 2018 and 2017 and for the years ended December 31, 2018 and 2017, which report appears in the Offering Circular, which is part of this Offering Statement. We also consent to the reference to our Firm under the heading “Experts” in such Offering Circular.
/s/ Marcum llp
Marcum llp
New York, NY
September 20, 2019
Exhibit 12.1
manatt
manatt | phelps | phillips
September 20, 2019 |
CaliberCos Inc.
8901 E. Mountain View Road
Suite 150
Scottsdale, Arizona 85258
Re: | Offering Statement on Form 1-A |
Ladies and Gentlemen:
We have acted as counsel to CaliberCos Inc., a Delaware corporation (the “Company”), in connection with its filing of an offering statement on Form 1-A (File No. 024-11016) (the “Offering Statement”), filed by the Company with the Securities and Exchange Commission (the “Commission”) under the Securities Act of 1933, as amended (the “Securities Act”). The Offering Statement relates to the proposed issuance and sale on a continuous basis by the Company of up to 7,988,911 shares of the Class A Common Stock of the Company (the “Company Shares”) and by the selling security holders named in the Offering Statement of up to 2,011,089 shares of the Class A Common Stock of the Company (the “Stockholder Shares”) pursuant to Rule 251(d)(3)(i)(F) of the Securities Act, as set forth in the Offering Statement. This opinion letter is furnished to you at your request to enable you to fulfill the requirements of Form 1-A in connection with the Offering Statement.
We have examined such corporate records, certificates and other documents, and such questions of law, as we have considered necessary or appropriate for the purposes of rendering this opinion. We have relied, without independent verification, on certificates of public officials and, as to matters of fact material to the opinion set forth below, on certificates of officers of the Company.
For purposes of this opinion, we have made assumptions that are customary in opinion letters of this kind, including (i) the authenticity of original documents and the genuineness of all signatures; (ii) the accuracy and completeness of all documents submitted to us; (iii) the conformity to the originals of all documents submitted to us as copies; (iv) the legal capacity of all natural persons; and (v) that the Offering Statement and any amendments thereto (including post-effective amendments) will have become qualified under the Securities Act. We have not independently verified any of those assumptions.
Our opinion herein is expressed solely with respect to the Delaware General Corporate Law (the “DGCL”). We express no opinion as to whether the laws of any jurisdiction are applicable to the subject matter hereof. Our opinions as to the DGCL are based solely on a review of the official statutes of the State of Delaware and the applicable provisions of the Delaware Constitution and the reported judicial decisions interpreting such statutes and provisions. No opinion is being rendered hereby with respect to the truth, accuracy or completeness of the Offering Statement or any portion thereof.
7 Times Square, New York, New York 10036 Telephone: 212.790.4500 Fax: 212.790.4545 Albany | Los Angeles | New York | Orange County | Palo Alto | Sacramento | San Francisco | Washington, D.C. |
manatt
manatt | phelps | phillips
CaliberCos Inc.
September 20, 2019
Page 2
Based on the foregoing, and subject to the qualifications herein stated, we are of the opinion that the Company Shares, when issued and delivered against payment therefor in the manner described in the Offering Circular, will be, and the Stockholder Shares are, validly issued, fully paid and non-assessable.
This opinion is limited to the matters expressly stated herein and is provided solely for purposes of complying with the requirements of the Securities Act, and no opinions may be inferred or implied beyond the matters expressly stated herein. This opinion is based on facts and law existing as of the first date written above and rendered as of such date. We assume no obligation to advise the Company of any fact, circumstance, event or change in the law subsequent to the date of qualification of the Offering Statement, compliance with any continuing disclosure requirements that may be applicable, or of any facts that may thereafter be brought to our attention whether or not such occurrence would affect or modify the opinion expressed herein. We further assume no obligation to update or supplement this opinion to reflect any changes of law or fact that may occur following the date hereof.
We hereby consent to the filing of this opinion as an exhibit to the Offering Statement and to the reference to this firm under the caption “Legal Matters” in the Offering Statement. In giving such consent, we do not believe that we are “experts” within the meaning of such term as used in the Securities Act or the rules and regulations of the Commission issued thereunder with respect to any part of the Offering Statement, including this opinion as an exhibit or otherwise.
This opinion is expressed as of the date hereof unless otherwise expressly stated, and we disclaim any undertaking to advise you of any subsequent changes in the facts stated or assumed herein or of any subsequent changes in applicable laws.
Very truly yours,
/s/ Manatt, Phelps & Phillips, LLP
Manatt, Phelps & Phillips, LLP