Variable Interest Entities

6 Months Ended

Jun. 30, 2023

Variable Interest Entities [Abstract]

NOTE 2 – VARIABLE INTEREST ENTITIES

Included in the unaudited condensed consolidated results of operations for the three months ended June 30, 2023 and 2022 were net losses of $263,783 and $250,915, respectively, after deducting an additional management fee equal to cash flow after debt service pursuant to the management agreement of $111,919 and $222,566, respectively.

Included in the unaudited condensed consolidated results of operations for the six months ended June 30, 2023 and 2022 were net losses of $446,249 and $410,485, respectively, after deducting an additional management fee equal to cash flow after debt service pursuant to the management agreement of $142,441 and $305,579, respectively.

The consolidated balance sheets as of June 30, 2023 and December 31, 2022 included the following amounts related to the consolidated VIEs.


	June 30, 2023			December 31, 2022
	(Unaudited)
Assets
Investment Property	$	15,388,605		$	14,688,424
Accumulated Depreciation		(1,303,541	)		(997,240	)
Net Investment Property		14,085,064			13,691,184
Cash and Cash Equivalents		43,526			40,080
Accounts Receivable		136,181			60,538
Other Assets		230,853			194,871
Total Assets	$	14,495,624		$	13,986,673

Liabilities and Deficit
Accounts Payable	$	106,749		$	206,882
Notes Payable, net of $44,531 and $45,790 debt discount, respectively		3,025,069			3,035,455
Line of Credit, net of $205,877 and $160,372 debt discount, respectively		7,498,868			6,208,947
Accrued Liabilities(1)		6,141,364			6,306,178
Total Liabilities		16,772,050			15,757,462

Non-controlling Interest		(2,276,426	)		(1,770,789	)
Total Non-controlling Interest in Variable Interest Entities		(2,276,426	)		(1,770,789	)

(1) Included in accrued liabilities is an intercompany balance of $6,009,666 and $6,232,561 as of June 30, 2023 and December 31, 2022, respectively. The intercompany balances have been eliminated on the condensed consolidated balance sheet.

MANUFACTURED HOUSING PROPERTIES INC. 10-Q