Notes to Unaudited Consolidated Financial Statements

The Company's capital assets consist of warehouse units, computer equipment, office furniture and leasehold improvements for the new office.  Depreciation and amortization is calculated using the straight-line method over the estimated useful life of the asset, ranging from 18 months to 39 years.  Expenditures for additions and improvements are capitalized, while repairs and maintenance costs are expensed as incurred.  The cost and related accumulated depreciation of any capital assets that are sold or otherwise disposed of are removed from the accounts and any gain or loss is recorded in the year of disposal.

		September 30, 2016				December 31, 2015
Computer equipment		$	5,672			$	5,672
Furniture and fixtures			7,777				6,837
Leasehold improvements			4,000				4,000
Warehouse units			861,000				861,000
Accumulated amortization and depreciation			(52,277	)			(34,403	)
Total fixed assets		$	826,172			$	843,106

 

The note to seller is secured by the three warehouse units.

The following discussion should be read in conjunction with the financial statements of Home Treasure Finders, Inc. and Subsidiaries (the "Company"), which are included elsewhere in this Form 10-Q. This Quarterly Report on Form 10-Q contains forward-looking information. Forward-looking information includes statements relating to future actions, future performance, costs and expenses, interest rates, outcome of contingencies, financial condition, results of operations, liquidity, business strategies, cost savings, objectives of management, and other such matters of the Company. The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking information to encourage companies to provide prospective information about themselves without fear of litigation so long as that information is identified as forward-looking and is accompanied by meaningful cautionary statements identifying important factors that could cause actual results to differ materially from those projected in the information. Forward-looking information may be included in this Quarterly Report on Form 10-Q or may be incorporated by reference from other documents filed with the Securities and Exchange Commission (the "SEC") by the Company. You can find many of these statements by looking for words including, for example, "believes", "expects", "anticipates", "estimates" or similar expressions in this Quarterly Report on Form 10-Q or in documents incorporated by reference in this Quarterly Report on Form 10-Q. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information or future events.

We have based the forward-looking statements relating to our operations on our management's current expectations, estimates and projections about our Company and the industry in which we operate. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that we cannot predict. In particular, we have based many of these forward-looking statements on assumptions about future events that may prove to be inaccurate. Accordingly, our actual results may differ materially from those contemplated by these forward-looking statements. Any differences could result from a variety of factors, including, but not limited to general economic and business conditions, competition, and other factors.

Financial Condition and Results of Operation

Home Treasure Finders, Inc. was formed on July 28, 2008. The founder, sole director and officer of our company is Corey Wiegand. On March 3, 2014 we formed a wholly owned subsidiary, HMTF Cannabis Holdings, Inc. to purchase properties that qualify for legal cultivation of cannabis. 

Our net loss for the nine months ended September 30, 2016 was $17,820.  We generated operating revenue from three sources, sales commissions, property management, and commercial real estate for legal cannabis cultivation. We manage approximately 65 rental real estate owned by non-related third parties. In comparison our net loss for the nine months ended September 30, 2015 was $41,856.

For the nine months ended September 30, 2016 the Company generated a total of $341,710 in revenues, consisting of $165,053 from sales commissions and $176,656 from rental and property management.  During the nine months ended September 30, 2015 we generated a total of $287,604 in revenues, consisting of $147,470 from sales commissions and $140,134 from rental and property management.

During the nine months ending September 30, 2016 we incurred operating expenses totaling $316,161. Such expenses consisted primarily of commissions paid on the revenue earned, general and administrative expenses, property management expenses and professional fees.  During the nine months ended September 30, 2015 we incurred a total of $285,142 of operating expenses consisting primarily of commissions paid on the revenue earned, general and administrative expenses and professional fees.  The increase in expenses over prior year was primarily related to increase in audit and legal fees and increase in property management expenses and other administrative expenses.

 Our net loss for the three months ended September 30, 2016 and 2015 was $6,711 and $20,070, respectively.  For the three months ended September 30, 2016 the Company generated a total of $104,261 in revenues, consisting of $44,535 from sales commissions and $59,726 from rental and property management.  During the three months ended September 30, 2015 we generated a total of $103,319 in revenues, consisting of $73,928 from sales commissions and $29,391 from rental and property management.

During the three months ending September 30, 2016 we incurred operating expenses totaling $96,554. Such expenses consisted primarily of commissions paid on the revenue earned, general and administrative expenses, property management expenses and professional fees.  During the three months ended September 30, 2015 we incurred a total of $108,651 of operating expenses consisting primarily of commissions paid on the revenue earned, general and administrative expenses and professional fees.  The decrease in expenses over prior year was primarily related to a decrease in commissions being paid out.

At September 30, 2016, we had $45,827 in cash and working capital deficit of $74,519.  At December 31, 2015 we had $45,210 in cash and a working capital deficit of $65,622.

The business plan of our subsidiary, HMTF Cannabis Holdings, Inc. is capital intensive and requires that we raise significant additional capital to acquire and improve real estate. We are negotiating with various sources for an equity infusion to match our long term capital needs.