HOME TREASURE FINDERS, INC. AND SUBSIDIARIES

As of May 15, 2017, there were 13,205,450 shares of our common stock, no par value outstanding.

 

 

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Note 1:  Basis of Presentation

 

  

Note 2:  Going Concern

 

The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.   These factors, among others, may indicate that the Company will be unable to continue as a going concern for a reasonable period of time.

 

The financial statements do not include any adjustments relating to the recoverability and classification of assets and liabilities that might be necessary should the Company be unable to continue as a going concern.  The Company's continuation as a going concern is dependent upon its ability to generate sufficient cash flow to meet its obligations on a timely basis and ultimately to attain profitability.  The Company intends to seek additional funding through equity offerings to fund its business plan.  There is no assurance that the Company will be successful in raising additional funds. 

 

 

Note 3:  Related Party Transaction

During the three months ended March 31, 2017, the related party payable had a net decrease of $1,595.  The balance of the related party payable was $15,995 and $17,590 as of March 31, 2017 and December 31, 2016, respectively.  This payable is due on demand and has an interest rate of 8%.  Accrued interest on this payable was $3,674 and $3,305 at March 31, 2017 and December 31, 2016, respectively.  Interest expense for the three months ended March 31, 2017 and 2016 was $369 and $309, respectively. 

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HOME TREASURER FINDERS, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

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Note 5:  Long-Term Debt

On September 15, 2014, the Company entered into a promissory note for $840,000 on the purchase of three warehouse units known as 4420, 4430 and 4440 Garfield Street, Denver, Colorado. The Company is leasing each of the three separate units to licensed third party growers for cannabis cultivation.  The terms of the variable interest 25 year amortization note carried by the seller of the property call for payments to seller as follows:

 

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First and Second year interest rate at 7% with 25 year amortization payment at $5,937 per month.

 

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Third and Fourth year at 8% with 25 year amortization payment at $6,278 per month.

 

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Fifth year at 9% with 25 year amortization payment at $6,640 per month.

 

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Balloon payment of $777,255 due at end of the fifth year.

 

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

 

 

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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 income for the three months ended March 31, 2017 was $3,704.  We generated operating revenue from three sources, sales commissions, property management, and commercial real estate for legal cannabis cultivation. We manage approximately 97 rental real estate owned by non-related third parties. In comparison our net income for the three months ended March 31, 2016 was $5,267.

For the three months ended March 31, 2017 the Company generated a total of $110,316 in revenues, consisting of $49,477 from sales commissions and $60,839 from rental and property management.  During the three months ended March 31, 2016 we generated a total of $104,931 in revenues, consisting of $48,026 from sales commissions and $56,905 from rental and property management.

During the three months ending March 31, 2017 we incurred operating expenses totaling $90,027. Such expenses consisted primarily of commissions paid on the revenue earned, general and administrative expenses and professional fees.  During the three months ended March 31, 2016 we incurred a total of $85,080 of operating expenses consisting primarily of commissions paid on the revenue earned, general and administrative expenses and professional fees.  Although there was a decrease in professional fees in the current year, there was an increase in other administrative expenses that resulted in an overall increase in expenses over prior year.

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At March 31, 2017, we had $46,948 in cash and working capital deficit of $63,193.  At December 31, 2016 we had $60,202 in cash and a working capital deficit of $72,866.

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.

 

 

Item 3. Quantitative and Qualitative Disclosures About Market Risk

No response required.

 

Item 4.  Controls and Procedures

Our disclosure controls and procedures are designed to ensure that information required to be disclosed in reports that we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the United States Securities and Exchange Commission. Our Chief Executive Officer has reviewed the effectiveness of our "disclosure controls and procedures" (as defined in the Securities Exchange Act of 1934 Rules 13a-14(c) and 15d-14(c)) within the end of the period covered by this Quarterly Report on Form 10-Q and has concluded that the disclosure controls and procedures are ineffective to ensure that material information relating to the Company is recorded, processed, summarized, and reported in a timely manner. There were no changes in our internal controls or in other factors that could materially affect these controls subsequent to the last day they were evaluated by our Chief Executive Officer, who is our principal executive officer and our principal financial officer.

 

There have been no changes in our internal control over financial reporting during the last quarterly period covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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Item 1A.  Risk Factors

 

No response required.

 

None.

 

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