Delaware | 06-6385350 |
(State or Other Jurisdiction of Organization) | (I.R.S. Employer Incorporation or Identification No.) |
Richman American Credit Corp. | |
340 Pemberwick Road | |
Greenwich, Connecticut | 06831 |
(Address of Principal Executive Offices) | (Zip Code) |
Table of Contents | ||
Page | ||
Item 1. | Financial Statements. | |
Balance Sheets | 3 | |
Statements of Operations and Comprehensive Income (Loss) | 4 | |
Statements of Cash Flows | 5 | |
Notes to Financial Statements | 7 | |
Item 2. | Management’s Discussion and Analysis of Financial C | |
Item 3. | Quantitative and Qualitative Disclosure About Market Risk. | |
Item 4. | Controls and Procedures. |
December 30, | March 30, | |||||||
2014 | 2014 | |||||||
ASSETS | ||||||||
Cash and liquid investments | ||||||||
Cash and cash equivalents | $ | 36,552 | $ | 111,475 | ||||
Investment in Pemberwick Fund, a short duration bond fund | 362,357 | 654,505 | ||||||
Total cash and liquid investments | 398,909 | 765,980 | ||||||
Investment in local partnerships | 432,777 | 2,518,186 | ||||||
$ | 831,686 | $ | 3,284,166 | |||||
LIABILITIES AND OWNERS' EQUITY (DEFICIT) | ||||||||
Liabilities | ||||||||
Accounts payable and accrued expenses | $ | 17,188 | $ | 23,137 | ||||
Payable to manager and affiliates | 555,316 | 717,095 | ||||||
572,504 | 740,232 | |||||||
Commitments and contingencies | ||||||||
Owners' equity (deficit) | ||||||||
Manager | (161,304 | ) | (138,488 | ) | ||||
Beneficial owners (18,654 units of beneficial ownership interest outstanding) | 419,162 | 2,677,898 | ||||||
Accumulated other comprehensive income | 1,324 | 4,524 | ||||||
259,182 | 2,543,934 | |||||||
$ | 831,686 | $ | 3,284,166 |
September 29, | March 30, | |||||||
2014 | 2014 | |||||||
ASSETS | ||||||||
Cash and liquid investments | ||||||||
Cash and cash equivalents | $ | 97,605 | $ | 111,475 | ||||
Investment in Pemberwick Fund, a short duration bond fund | 563,184 | 654,505 | ||||||
Total cash and liquid investments | 660,789 | 765,980 | ||||||
Investment in local partnerships | 2,615,695 | 2,518,186 | ||||||
$ | 3,276,484 | $ | 3,284,166 | |||||
LIABILITIES AND OWNERS' EQUITY (DEFICIT) | ||||||||
Liabilities | ||||||||
Accounts payable and accrued expenses | $ | 15,125 | $ | 23,137 | ||||
Payable to manager and affiliates | 774,129 | 717,095 | ||||||
789,254 | 740,232 | |||||||
Commitments and contingencies | ||||||||
Owners' equity (deficit) | ||||||||
Manager | (139,055 | ) | (138,488 | ) | ||||
Beneficial owners (18,654 units of beneficial ownership interest outstanding) | 2,621,886 | 2,677,898 | ||||||
Accumulated other comprehensive income | 4,399 | 4,524 | ||||||
2,487,230 | 2,543,934 | |||||||
$ | 3,276,484 | $ | 3,284,166 |
Three Months Ended September 29, 2014 | Six Months Ended September 29, 2014 | Three Months Ended September 29, 2013 | Six Months Ended September 29, 2013 | Three Months Ended December 30, 2014 | Nine Months Ended December 30, 2014 | Three Months Ended December 30, 2013 | Nine Months Ended December 30, 2013 | |||||||||||||||||||||||||
REVENUE | ||||||||||||||||||||||||||||||||
Interest | $ | 2,298 | $ | 3,891 | $ | 2,417 | $ | 4,885 | $ | 2,299 | $ | 6,190 | $ | 3,689 | $ | 8,574 | ||||||||||||||||
Other income from local partnerships | 3,000 | 750 | 3,750 | 3,000 | 48,750 | 52,500 | ||||||||||||||||||||||||||
TOTAL REVENUE | 2,298 | 6,891 | 3,167 | 8,635 | 2,299 | 9,190 | 52,439 | 61,074 | ||||||||||||||||||||||||
EXPENSES | ||||||||||||||||||||||||||||||||
Management fee | 32,472 | 59,625 | 40,062 | 80,123 | 32,473 | 92,098 | 37,792 | 117,915 | ||||||||||||||||||||||||
Professional fees | 8,333 | 18,910 | 12,296 | 21,254 | 8,178 | 27,088 | 10,833 | 32,087 | ||||||||||||||||||||||||
Printing, postage and other | 10,708 | 10,853 | 2,764 | 3,121 | 3,703 | 14,556 | 3,726 | 6,847 | ||||||||||||||||||||||||
TOTAL EXPENSES | 51,513 | 89,388 | 55,122 | 104,498 | 44,354 | 133,742 | 52,351 | 156,849 | ||||||||||||||||||||||||
(49,215 | ) | (82,497 | ) | (51,955 | ) | (95,863 | ) | (42,055 | ) | (124,552 | ) | 88 | (95,775 | ) | ||||||||||||||||||
�� | ||||||||||||||||||||||||||||||||
Equity in income of investment in local partnerships | 76,912 | 157,742 | 68,986 | 160,291 | ||||||||||||||||||||||||||||
Equity in income (loss) of investment in local partnerships | (2,182,918 | ) | (2,025,176 | ) | 47,786 | 208,077 | ||||||||||||||||||||||||||
NET INCOME | 27,697 | 75,245 | 17,031 | 64,428 | ||||||||||||||||||||||||||||
NET INCOME (LOSS) | (2,224,973 | ) | (2,149,728 | ) | 47,874 | 112,302 | ||||||||||||||||||||||||||
Other comprehensive income (loss) - investment in Pemberwick Fund | (1,425 | ) | (125 | ) | 814 | (4,055 | ) | |||||||||||||||||||||||||
Other comprehensive loss - investment in Pemberwick Fund | (3,075 | ) | (3,200 | ) | (570 | ) | (4,625 | ) | ||||||||||||||||||||||||
COMPREHENSIVE INCOME | $ | 26,272 | $ | 75,120 | $ | 17,845 | $ | 60,373 | ||||||||||||||||||||||||
COMPREHENSIVE INCOME (LOSS) | $ | (2,228,048 | ) | $ | (2,152,928 | ) | $ | 47,304 | $ | 107,677 | ||||||||||||||||||||||
NET INCOME ATTRIBUTABLE TO | ||||||||||||||||||||||||||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO | ||||||||||||||||||||||||||||||||
Manager | $ | 277 | $ | 752 | $ | 170 | $ | 644 | $ | (22,249 | ) | $ | (21,497 | ) | $ | 479 | $ | 1,123 | ||||||||||||||
Beneficial owners | 27,420 | 74,493 | 16,861 | 63,784 | (2,202,724 | ) | (2,128,231 | ) | 47,395 | 111,179 | ||||||||||||||||||||||
$ | 27,697 | $ | 75,245 | $ | 17,031 | $ | 64,428 | $ | (2,224,973 | ) | $ | (2,149,728 | ) | $ | 47,874 | $ | 112,302 | |||||||||||||||
NET INCOME per unit of beneficial ownership interest (18,654 units of beneficial ownership interest) | $ | 1.47 | $ | 3.99 | $ | .90 | $ | 3.42 | ||||||||||||||||||||||||
NET INCOME (LOSS) per unit of beneficial ownership interest (18,654 units of beneficial ownership interest) | $ | (118.08 | ) | $ | (114.09 | ) | $ | 2.54 | $ | 5.96 |
2014 | 2013 | 2014 | 2013 | |||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||||||
Interest received | $ | 3,024 | $ | 4,885 | $ | 4,286 | $ | 7,189 | ||||||||
Cash paid for | ||||||||||||||||
Management fees | (2,591 | ) | (2,592 | ) | (253,877 | ) | (253,889 | ) | ||||||||
Professional fees | (25,885 | ) | (34,204 | ) | (32,000 | ) | (39,099 | ) | ||||||||
Printing, postage and other expenses | (11,890 | ) | (5,258 | ) | (15,593 | ) | (8,984 | ) | ||||||||
Net cash used in operating activities | (37,342 | ) | (37,169 | ) | (297,184 | ) | (294,783 | ) | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||||||
Investments in Pemberwick Fund | (2,937 | ) | (4,678 | ) | (4,148 | ) | (6,870 | ) | ||||||||
Redemptions from Pemberwick Fund | 95,000 | 295,000 | 170,000 | |||||||||||||
Distributions received from local partnerships | 63,233 | 60,991 | 63,233 | 109,741 | ||||||||||||
Net cash provided by investing activities | 155,296 | 56,313 | 354,085 | 272,871 | ||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||||||
Distributions to owners | (131,824 | ) | (131,824 | ) | ||||||||||||
Net cash used in financing activities | (131,824 | ) | (131,824 | ) | ||||||||||||
Net increase (decrease) in cash and cash equivalents | (13,870 | ) | 19,144 | |||||||||||||
Net decrease in cash and cash equivalents | (74,923 | ) | (21,912 | ) | ||||||||||||
Cash and cash equivalents at beginning of period | 111,475 | 141,858 | 111,475 | 141,858 | ||||||||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | 97,605 | $ | 161,002 | $ | 36,552 | $ | 119,946 | ||||||||
SIGNIFICANT NONCASH INVESTING AND FINANCING ACTIVITIES | ||||||||||||||||
Unrealized loss on investment in Pemberwick Fund | $ | (125 | ) | $ | (4,055 | ) | $ | (3,200 | ) | $ | (4,625 | ) |
2014 | 2013 | |||||||
RECONCILIATION OF NET INCOME TO NET CASH USED IN OPERATING ACTIVITIES | ||||||||
Net income | $ | 75,245 | $ | 64,428 | ||||
Adjustments to reconcile net income to net cash used in operating activities | ||||||||
Equity in income of investment in local partnerships | (157,742 | ) | (160,291 | ) | ||||
Gain on redemptions from Pemberwick Fund | (867 | ) | ||||||
Other income from local partnerships | (3,000 | ) | (3,750 | ) | ||||
Decrease in accounts payable and accrued expenses | (8,012 | ) | (15,087 | ) | ||||
Increase in payable to manager and affiliates | 57,034 | 77,531 | ||||||
NET CASH USED IN OPERATING ACTIVITIES | $ | (37,342 | ) | $ | (37,169 | ) |
2014 | 2013 | |||||||
RECONCILIATION OF NET INCOME (LOSS) TO NET CASH USED IN OPERATING ACTIVITIES | ||||||||
Net income (loss) | $ | (2,149,728 | ) | $ | 112,302 | |||
Adjustments to reconcile net income (loss) to net cash used in operating activities | ||||||||
Equity in loss (income) of investment in local partnerships | 2,025,176 | (208,077 | ) | |||||
Gain on redemptions from Pemberwick Fund | (1,904 | ) | (1,385 | ) | ||||
Other income from local partnerships | (3,000 | ) | (52,500 | ) | ||||
Decrease in accounts payable and accrued expenses | (5,949 | ) | (9,149 | ) | ||||
Decrease in payable to manager and affiliates | (161,779 | ) | (135,974 | ) | ||||
NET CASH USED IN OPERATING ACTIVITIES | $ | (297,184 | ) | $ | (294,783 | ) |
1. | Basis of Presentation |
2. | Investment in Local Partnerships |
Investment in local partnerships as of March 30, 2014 | $ | 2,518,186 | $ | 2,518,186 | ||||
Equity in income of investment in local partnerships | 157,742 | * | ||||||
Equity in loss of investment in local partnerships | (2,025,176 | ) * | ||||||
Distributions from Local Partnerships | (63,233 | ) | (63,233 | ) | ||||
Distributions classified as other income | 3,000 | 3,000 | ||||||
Investment in local partnerships as of September 29, 2014 | $ | 2,615,695 | ||||||
Investment in local partnerships as of December 30, 2014 | $ | 432,777 | ||||||
*In the event the operations of a Local Partnership result in a loss, equity in loss of each investment in Local Partnership allocated to the Trust is recognized to the extent of the Trust’s investment balance in each Local Partnership. Equity in loss in excess of the Trust’s investment balance in a Local Partnership is allocated to other partners’ capital in any such Local Partnership. |
2. | Investment in Local Partnerships (Continued) |
Total assets | $ | 5,447,088 | $ | 5,279,461 | ||||
Total liabilities | $ | 2,778,263 | $ | 2,654,222 | ||||
Revenue | $ | 756,537 | $ | 1,124,183 | ||||
Net income | $ | 159,335 | $ | 176,590 |
3. | Investment in Pemberwick Fund |
4. | Distributions to Owners |
5. | Additional Information |
· | Registrant accounts for its investment in local partnerships in accordance with the equity method of accounting. |
· | If the book value of Registrant’s investment in a Local Partnership exceeds the estimated value derived by management, Registrant reduces its investment in any such Local Partnership and includes such reduction in equity in income (loss) of investment in local partnerships. Registrant makes such assessment at least annually in the fourth quarter of its fiscal year or whenever there are indications that a permanent impairment may have occurred. A loss in value of an investment in a Local Partnership other than a temporary decline would be recorded as an impairment loss. Impairment is measured by comparing the investment carrying amount to the estimated residual value of the investment. |
· | Registrant does not consolidate the accounts and activities of the Local Partnerships, which are considered Variable Interest Entities as defined by Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 810; Subtopic 10 because Registrant is not considered the primary beneficiary. Registrant’s balance in investment in local partnerships represents the maximum exposure to loss in connection with such investments. Registrant’s exposure to loss on the Local Partnerships is mitigated by the condition and financial performance of the underlying Properties as well as the financial strength of the Local General Partners. In addition, the partnership agreements of the Local Partnerships grant the Local General Partners the power to direct the activities that most significantly impact the economic success of the Local Partnerships. |
Exhibit 31.1 Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer. | |
Exhibit 31.2 Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer. | |
Exhibit 32.1 Section 1350 Certification of Chief Executive Officer. | |
Exhibit 32.2 Section 1350 Certification of Chief Financial Officer. | |
Exhibit 101.ins - XBRL Instance.* | |
Exhibit 101.xsd - XBRL Schema.* | |
Exhibit 101.cal - XBRL Calculation.* | |
Exhibit 101.def - XBRL Definition.* | |
Exhibit 101.lab - XBRL Label.* | |
Exhibit 101.pre - XBRL Presentation.* |
AMERICAN TAX CREDIT TRUST, A DELAWARE | |
STATUTORY BUSINESS TRUST SERIES I | |
By:Richman American Credit Corp. | |
The Manager | |
Dated: | /s/David Salzman |
By: David Salzman | |
Chief Executive Officer | |
Dated: | /s/James Hussey |
By:James Hussey | |
Chief Financial Officer | |
Dated: | /s/Richard Paul Richman |
By:Richard Paul Richman | |
Sole Director |