| Delaware (State or other jurisdiction of incorporation or organization) | | | 531110 (Primary Standard Industrial Classification Code Number) | | | 82-3334945 (I.R.S. Employer Identification Number) | |
| Copies to: | | |||
| David Alan Miller, Esq. Brian L. Ross, Esq. Graubard Miller The Chrysler Building 405 Lexington Avenue New York, New York 10174 Telephone: (212) 818-8800 Facsimile: (212) 818-8881 | | | Mitchell S. Nussbaum, Esq. Angela M. Dowd, Esq. Loeb & Loeb LLP 345 Park Avenue New York, New York 10154 Phone: (212)407-4000 | |
| Large accelerated filer ☐ Non-accelerated filer ☒ | | | Accelerated filer ☐ Smaller reporting company ☒ Emerging growth company ☒ | |
| | | PER SHARE | | | TOTAL | | ||||||
Public offering price | | | | $ | [•] | | | | | $ | [•] | | |
Underwriting discounts and commissions(1) | | | | $ | [•] | | | | | $ | [•] | | |
Proceeds, before expenses, to us | | | | $ | [•] | | | | | $ | [•] | | |
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| | | Year Ended December 31, | | Three Months Ended December 31, (unaudited) | | | | Year Ended December 31, | | Three Months Ended March 31, (unaudited) | | ||||||||||||||||||||||||||||||||||||||
| 2021 | | 2020 | | 2021 | | 2020 | | | 2021 | | 2020 | | 2022 | | 2021 | | |||||||||||||||||||||||||||||||||
Rental Revenue | | | $ | 32,223,365 | | | | $ | 13,540,488 | | | | $ | 10,738,298 | | | | $ | 4,570,755 | | | | | $ | 32,223,365 | | | | $ | 13,540,488 | | | | $ | 11,762,899 | | | | $ | 4,960,187 | | | ||||||||
Refunds and Allowances (“Refunds”) | | | $ | 10,843,452 | | | | $ | 5,266,629 | | | | $ | 3,493,661 | | | | $ | 2,354,958 | | | | | $ | 10,843,452 | | | | $ | 5,266,629 | | | | $ | 2,663,474 | | | | $ | 1,654,158 | | | ||||||||
Net Rental Revenue | | | $ | 21,379,913 | | | | $ | 8,273,859 | | | | $ | 7,244,637 | | | | $ | 2,215,797 | | | | | $ | 21,379,913 | | | | $ | 8,273,859 | | | | $ | 9,099,425 | | | | $ | 3,306,029 | | | ||||||||
Cost of Revenue | | | $ | 19,269,153 | | | | $ | 11,232,643 | | | | $ | 5,495,327 | | | | $ | 3,576,238 | | | | | $ | 19,269,153 | | | | $ | 11,232,643 | | | | $ | 6,586,162 | | | | $ | 3,885,293 | | | ||||||||
Gross profit (loss) | | | $ | 2,110,760 | | | | $ | (2,958,784) | | | | $ | 1,749,310 | | | | $ | (1,360,441) | | | | | $ | 2,110,760 | | | | $ | (2,958,784) | | | | $ | 2,513,263 | | | | $ | (579,264) | | | ||||||||
Total operating costs | | | $ | 2,844,637 | | | | $ | 1,107,240 | | | | $ | 1,233,549 | | | | $ | 407,399 | | | | | $ | 2,844,637 | | | | $ | 1,107,240 | | | | $ | 979,606 | | | | $ | 610,432 | | | ||||||||
Gain / (loss) from operations | | | $ | (733,877) | | | | $ | (4,066,024) | | | | $ | 515,761 | | | | $ | (1,767,840) | | | |||||||||||||||||||||||||||||
Income / (loss) from operations | | | $ | (733,877) | | | | $ | (4,066,024) | | | | $ | 1,533,657 | | | | $ | (1,189,696) | | | |||||||||||||||||||||||||||||
Total other (expense) | | | $ | (1,499,507) | | | | $ | (549,701) | | | | $ | (273,179) | | | | $ | (97,841) | | | | | $ | (1,499,507) | | | | $ | (549,701) | | | | $ | (114,224) | | | | $ | (117,210) | | | ||||||||
Net Income (Loss) | | | $ | (2,233,384) | | | | $ | (4,615,725) | | | | $ | 242,582 | | | | $ | (1,864,681) | | | | | $ | (2,233,384) | | | | $ | (4,615,725) | | | | $ | 1,419,433 | | | | $ | (1,306,906) | | | ||||||||
Other Financial Data: | Other Financial Data: | | Other Financial Data: | | ||||||||||||||||||||||||||||||||||||||||||||||
Net Income (Loss) | | | $ | (2,233,384) | | | | $ | (4,615,725) | | | | $ | 242,582 | | | | $ | (1,864,681) | | | | | $ | (2,233,384) | | | | $ | (4,615,725) | | | | $ | 1,419,433 | | | | $ | (1,306,906) | | | ||||||||
Interest and financing costs | | | | 1,626,565 | | | | | 577,769 | | | | | 399,634 | | | | | 97,841 | | | | | | 1,626,565 | | | | | 577,769 | | | | | 564,137 | | | | | 117,243 | | | ||||||||
EBITDA | | | $ | (606,819) | | | | $ | (4,037,956) | | | | $ | 642,216 | | | | $ | (1,766,840) | | | | | $ | (606,819) | | | | $ | (4,037,956) | | | | $ | 1,983,570 | | | | $ | (1,189,663) | | | ||||||||
Gross Sales | | | | 32,223,365 | | | | | 13,540,488 | | | | | 10,738,298 | | | | | 4,570,755 | | | |||||||||||||||||||||||||||||
Refunds | | | | 10,843,452 | | | | | 5,266,629 | | | | | 3,493,661 | | | | | 2,354,958 | | | |||||||||||||||||||||||||||||
Refund % | | | | 33.7% | | | | | 38.9% | | | | | 32.5% | | | | | 51.5% | | | |||||||||||||||||||||||||||||
Refunds at Pre-COVID Levels(a) | | | | 4,653,324 | | | | | 1,955,360 | | | | | 1,550,700 | | | | | 660,055 | | | |||||||||||||||||||||||||||||
COVID related increase in Refunds | | | $ | 6,190,128 | | | | $ | 3,311,269 | | | | $ | 1,942,961 | | | | $ | 1,694,903 | | | |||||||||||||||||||||||||||||
EBITDA | | | | (606,819) | | | | | (4,037,956) | | | | | 642,216 | | | | | (1,766,840) | | | |||||||||||||||||||||||||||||
Adjusted EBITDA(b) | | | $ | 5,583,309 | | | | $ | (726,687) | | | | $ | 2,585,177 | | | | $ | (71,937) | | |
| | | As of December 31, | | | | As of December 31, | | As of March 31, (unaudited) | | |||||||||||||||||||||||||
| 2021 | | 2020 | | | 2021 | | 2020 | | 2022 | | | |||||||||||||||||||||||
Current Assets | | | $ | 2,656,436 | | | | $ | 493,013 | | | | | $ | 2,656,436 | | | | $ | 493,013 | | | | $ | 3,009,539 | | | | |||||||
Total Assets | | | $ | 3,767,936 | | | | $ | 493,013 | | | | | $ | 3,767,936 | | | | $ | 493,013 | | | | $ | 39,895,390 | | | | |||||||
Current Liabilities | | | $ | 9,521,185 | | | | $ | 5,916,630 | | | | | $ | 9,521,185 | | | | $ | 5,916,630 | | | | $ | 16,932,754 | | | | |||||||
Long-Term Liabilities | | | $ | 5,460,801 | | | | $ | 2,372,05 | | | | | $ | 5,460,801 | | | | $ | 2,372,05 | | | | $ | 33,171,626 | | | | |||||||
Total Liabilities | | | $ | 14,981,986 | | | | $ | 8,288,682 | | | | | $ | 14,981,986 | | | | $ | 8,288,682 | | | | $ | 50,104,380 | | | | |||||||
Stockholders’ Deficit | | | $ | (11,214,050) | | | | $ | (7,795,669) | | | | | $ | (11,214,050) | | | | $ | (7,795,669) | | | | $ | (10,208,990) | | | | |||||||
Liabilities and Stockholders’ Deficit | | | $ | 3,767,936 | | | | $ | 493,013 | | | | | $ | 3,767,936 | | | | $ | 493,013 | | | | $ | 39,895,390 | | | |
| | As of March 31, 2022 | | |||||||||||||||||||||||||||||||||||||||||||||||
| | Actual | | Pro Forma C Corp Conversion and Insider Bridge (unaudited) | | Pro Forma | | As Adjusted Pro Forma (unaudited)(1) | | | Actual | | Pro Forma Bridges (unaudited) | | Pro Forma Debt to Equity Conversion (unaudited) | | As Adjusted Pro Forma Offering (unaudited)(1) | | ||||||||||||||||||||||||||||||||
Cash | | | $ | 6,998 | | | | $ | 1,286,998 | | | | $ | 1,286,998 | | | | $ | 16,846,998 | | | | | $ | 62,189 | | | | $ | 5,860,189 | | | | $ | 5,860,189 | | | | $ | 19,311,689 | | | ||||||||
Total liabilities | | | $ | 14,981,986 | | | | $ | 16,261,986 | | | | $ | 13,318,645 | | | | $ | 13,318,645 | | | | | | 50,104,380 | | | | | 56,382,380 | | | | | 53,439,039 | | | | | 50,599,039 | | | ||||||||
Stockholder’s equity: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||
Preferred stock; par value $0.00001 per share, 10,000,000 shares authorized | | | | — | | | | | — | | | | | — | | | | | — | | | | | | — | | | | | — | | | | | — | | | | | — | | | ||||||||
Common stock, par value $0.00001 per share; 90,000,000 shares authorized; 0; 21,675,001; 22,684,881; 24,684,881 issued and outstanding, respectively | | | | — | | | | | 216 | | | | | 226 | | | | | 246 | | | |||||||||||||||||||||||||||||
Common stock, par value $0.00001 per share; 90,000,000 shares authorized; 21,675,001; 21,675,001; 23,018,288; 26,351,621 issued and outstanding, respectively | | | | 216 | | | | | 216 | | | | | 230 | | | | | 275 | | | |||||||||||||||||||||||||||||
Additional paid-in capital | | | | — | | | | | (11,214,266) | | | | | (8,270,935) | | | | | 7,289,045 | | | | | | — | | | | | — | | | | | 2,943,328 | | | | | 20,573,283 | | | ||||||||
Accumulated deficit | | | | — | | | | | — | | | | | — | | | | | — | | | |||||||||||||||||||||||||||||
Members’ deficit | | | | (11,214,050) | | | | | — | | | | | — | | | | | — | | | |||||||||||||||||||||||||||||
Retained earnings | | | | (10,209,206) | | | | | (10,209,206) | | | | | (10,209,206) | | | | | (10,685,206) | | | |||||||||||||||||||||||||||||
Total stockholders’ equity | | | | (11,214,050) | | | | | (11,214,050) | | | | | (8,270,709) | | | | | 7,289,291 | | | | | | (10,208,990) | | | | | (10,208,990) | | | | | (7,265,649) | | | | | 9,888,351 | | | ||||||||
Total liabilities and stockholders’ equity | | | $ | 3,767,936 | | | | $ | 5,047,936 | | | | $ | 5,047,936 | | | | $ | 20,607,936 | | | | | $ | 39,895,390 | | | | $ | 46,173,390 | | | | $ | 46,173,390 | | | | $ | 60,487,390 | | |
| Assumed public offering price | | | | | | | | $ | 9.00 | | | Assumed public offering price | | | | | | | | $ | 4.50 | | | ||||
| Historical actual net tangible book value before this offering | | | $ | (0.52) | | | | | | | | Historical actual net tangible book value before this offering | | | $ | (0.47) | | | | | | | | ||||
| Increase attributable to pro forma adjustment | | | $ | 0.16 | | | | | | | | Increase attributable to pro forma adjustment | | | $ | 0.13 | | | | | | | | ||||
| Pro forma net tangible book value before this offering | | | $ | (0.36) | | | | | | | | Pro forma net tangible book value before this offering | | | $ | (0.34) | | | | | | | | ||||
| Increase attributable to new investors | | | $ | 0.66 | | | | | | | | Increase attributable to new investors | | | $ | 0.70 | | | | | | | | ||||
| Pro forma as adjusted net tangible book value after this offering | | | | | | | | $ | 0.30 | | | Pro forma as adjusted net tangible book value after this offering | | | | | | | | $ | 0.36 | | | ||||
| Dilution to new investors | | | | | | | | $ | 8.70 | | | Dilution to new investors | | | | | | | | $ | 4.14 | | |
| | Shares Purchased | | Total Consideration | | | Weighted Average Price per Share | | | Shares Purchased | | Total Consideration | | | Weighted Average Price per Share | | ||||||||||||||||||||||||||||||||||||||||||||||
| | Number | | Percent | | Amount | | Percent | | | Number | | Percent | | Amount | | Percent | | ||||||||||||||||||||||||||||||||||||||||||||
Existing stockholders | | | | 22,684,881 | | | | | 92% | | | | $ | 3,677,479 | | | | | 17% | | | | $ | 0.15 | | | | | | 23,018,288 | | | | | 84% | | | | $ | 3,677,479 | | | | | 15% | | | | $ | 0.13 | | | ||||||||||
New investors | | | | 2,000,000 | | | | | 8% | | | | $ | 18,000,000 | | | | | 83% | | | | $ | 0.73 | | | | | | 4,500,000 | | | | | 16% | | | | $ | 20,250,000 | | | | | 85% | | | | $ | 0.74 | | | ||||||||||
Total | | | | 24,684,881 | | | | | 100% | | | | $ | 21,677,479 | | | | | 100% | | | | $ | 0.88 | | | | | | 27,518,288 | | | | | 100% | | | | $ | 23,927,479 | | | | | 100% | | | | $ | 0.87 | | |
| • Hassel-free experience | | | - | | | Easy, orderly, pleasant interactions | |
| • Expectations exceeded | | | - | | | Delighted people and exceptional experiences | |
| • Rave reviews posted | | | - | | | Public recognition of our Heroic service | |
| • Our brands remembered | | | - | | | Favorable recognition of our brands | |
| • Information shared | | | - | | | Social media and word-of-mouth marketing | |
| • Committed to return | | | - | | | Relationships established for repeat visits | |
Year | | OCC | | REVPAR | | | | OCC | | REVPAR | | | ||||||||||||||||||||
2018 | | | | 86% | | | | | 160 | | | | | | | | 86% | | | | | 160 | | | | | ||||||
2019 | | | | 84% | | | | | 157 | | | | | | | | 84% | | | | | 157 | | | | | ||||||
2020 | | | | 61% | | | | | 103 | | | | | | | | 61% | | | | | 103 | | | | | ||||||
2021 | | | | 72% | | | | | 122 | | | | | | | | 72% | | | | | 122 | | | | |||||||
2022 | | | | 82% | | | | | 132 | | | | |
| | | 2019 | | | 2020 | | | 2021 | | |||||||||
Average Unit Count | | | | | 110 | | | | | | 300 | | | | | | 462 | | |
# of Active Reservations Received | | | | | 3003 | | | | | | 4020 | | | | | | 12,744 | | |
Reservations/Unit Ratio | | | | | 27 | | | | | | 13 | | | | | | 28 | | |
| | | 2019 | | | 2020 | | | 2021 | | |||||||||
Total Gross Revenue | | | | $ | 6,350,628 | | | | | $ | 13,540,488 | | | | | $ | 32,161,720 | | |
Refund attributed to normal course of Business | | | | $ | 917,084 | | | | | $ | 2,200,000 | | | | | $ | 5,832,719 | | |
Covid Related Refunds | | | | | — | | | | | $ | 3,066,629 | | | | | $ | 5,010,733 | | |
% Refund due to normal course of Business | | | | | 14.44% | | | | | | 16.25% | | | | 18.10% | | |||
% Covid Related Refunds | | | | | — | | | | | | 22.65% | | | | 15.55% | |
| | | Annual % of Revenue By City | | ||||||
| | | 2021 | | | 2020 | | | 2019 | |
Boston | | | 18% | | | 6% | | | — | |
DC | | | 3% | | | 15% | | | 13% | |
Denver | | | 7% | | | 1% | | | 7% | |
Fort Lauderdale | | | 2% | | | — | | | — | |
Los Angeles | | | 11% | | | 6% | | | — | |
Miami | | | 6% | | | 16% | | | 10% | |
Miami Beach | | | 24% | | | 21% | | | 23% | |
New York | | | 23% | | | 30% | | | 18% | |
Seattle | | | 6% | | | 5% | | | 16% | |
Nashville | | | — | | | — | | | 13% | |
Total | | | 100% | | | 100% | | | 100% | |
| | | Annual % of Expenses By City | | ||||||
| | | 2021 | | | 2020 | | | 2019 | |
Boston | | | 10% | | | 8% | | | — | |
DC | | | 6% | | | 15% | | | 14% | |
Denver | | | 3% | | | 3% | | | 10% | |
Fort Lauderdale | | | 2% | | | — | | | — | |
LA | | | 17% | | | 10% | | | — | |
Miami | | | 7% | | | 15% | | | 14% | |
Miami Beach | | | 29% | | | 13% | | | 25% | |
New York | | | 21% | | | 34% | | | 15% | |
Seattle | | | 4% | | | 3% | | | 14% | |
Nashville | | | — | | | — | | | 8% | |
Total | | | 100% | | | 100% | | | 100% | |
| | | Year Ended December 31, | | | Three Months Ended December 31, (unaudited) | | ||||||||||||||||||||||||||||||
| 2021 | | | 2020 | | | % change | | | 2021 | | | 2020 | | | % change | | ||||||||||||||||||||
Gross Rental Revenue | | | | $ | 32,223,365 | | | | | $ | 13,540,488 | | | | | | 138% | | | | | $ | 10,738,298 | | | | | $ | 4,570,755 | | | | | | 135% | | |
Refunds | | | | $ | 10,843,452 | | | | | $ | 5,266,629 | | | | | | 106% | | | | | $ | 3,493,661 | | | | | $ | 2,354,958 | | | | | | 48% | | |
Net Rental Revenue | | | | $ | 21,379,913 | | | | | $ | 8,273,859 | | | | | | 158% | | | | | $ | 7,244,637 | | | | | $ | 2,215,797 | | | | | | 227% | | |
Cost of Revenue | | | | $ | 19,269,153 | | | | | $ | 11,232,643 | | | | | | 72% | | | | | $ | 5,495,327 | | | | | $ | 3,576,238 | | | | | | 54% | | |
Gross profit (loss) | | | | $ | 2,110,760 | | | | | $ | (2,958,784) | | | | | | (171)% | | | | | $ | 1,749,310 | | | | | $ | (1,360,441) | | | | | | 229% | | |
Total operating costs | | | | $ | 2,844,637 | | | | | $ | 1,107,240 | | | | | | 157% | | | | | $ | 1,233,549 | | | | | $ | 407,399 | | | | | | 203% | | |
Gain / (loss) from operations | | | | $ | (733,877) | | | | | $ | (4,066,024) | | | | | | (82)% | | | | | $ | 515,761 | | | | | $ | (1,767,840) | | | | | | 129% | | |
Total other (expense) | | | | $ | (1,499,507) | | | | | $ | (549,701) | | | | | | 173% | | | | | $ | (273,179) | | | | | $ | (97,841) | | | | | | 179% | | |
Net income / (loss) | | | | $ | (2,233,384) | | | | | $ | (4,615,725) | | | | | | (52)% | | | | | $ | 242,582 | | | | | $ | (1,864,681) | | | | | | 113% | | |
| | | Year Ended December 31, | | | Three Months Ended March 31, (unaudited) | | ||||||||||||||||||||||||||||||
| 2021 | | | 2020 | | | % change | | | 2022 | | | 2021 | | | % change | | ||||||||||||||||||||
Gross Rental Revenue | | | | $ | 32,223,365 | | | | | $ | 13,540,488 | | | | | | 138% | | | | | $ | 11,762,899 | | | | | $ | 4,960,187 | | | | | | 137% | | |
Refunds | | | | $ | 10,843,452 | | | | | $ | 5,266,629 | | | | | | 106% | | | | | $ | 2,663,474 | | | | | $ | 1,654,158 | | | | | | 61% | | |
Net Rental Revenue | | | | $ | 21,379,913 | | | | | $ | 8,273,859 | | | | | | 158% | | | | | $ | 9,099,425 | | | | | $ | 3,306,029 | | | | | | 175% | | |
Cost of Revenue | | | | $ | 19,269,153 | | | | | $ | 11,232,643 | | | | | | 72% | | | | | $ | 6,586,162 | | | | | $ | 3,885,293 | | | | | | 75% | | |
Gross profit (loss) | | | | $ | 2,110,760 | | | | | $ | (2,958,784) | | | | | | (171)% | | | | | $ | 2,513,263 | | | | | $ | (579,264) | | | | | | 494% | | |
Total operating costs | | | | $ | 2,844,637 | | | | | $ | 1,107,240 | | | | | | 157% | | | | | $ | 979,606 | | | | | $ | 610,432 | | | | | | 23% | | |
Income / (loss) from operations | | | | $ | (733,877) | | | | | $ | (4,066,024) | | | | | | (82)% | | | | | $ | 1,533,657 | | | | | $ | (1,189,696) | | | | | | 229% | | |
Total other (expense) | | | | $ | (1,499,507) | | | | | $ | (549,701) | | | | | | 173% | | | | | $ | (114,227) | | | | | $ | (117,210) | | | | | | (3)% | | |
Net income / (loss) | | | | $ | (2,233,384) | | | | | $ | (4,615,725) | | | | | | (52)% | | | | | $ | 1,419,433 | | | | | $ | (1,306,906) | | | | | | 209% | | |
| | | | As of December 31, 2021 | | | As of December 31, 2020 | | ||||||
| Cash | | | | $ | 6,998 | | | | | $ | 512 | | |
| Other Current Assets | | | | $ | 1,272,428 | | | | | $ | 58,514 | | |
| Total Current Assets | | | | $ | 1,279,426 | | | | | $ | 59,026 | | |
| Total Current Liabilities | | | | $ | 9,517,725 | | | | | $ | 5,916,630 | | |
| Working Capital (Deficit) | | | | $ | (8,238,299) | | | | | $ | (5,857,604) | | |
| | | | As of March 31, 2022 | | | As of December 31, 2021 | | ||||||
| Cash | | | | $ | 62,189 | | | | | $ | 6,998 | | |
| Other Current Assets | | | | $ | 2,947,350 | | | | | $ | 1,272,428 | | |
| Total Current Assets | | | | $ | 3,009,539 | | | | | $ | 1,279,426 | | |
| Total Current Liabilities | | | | $ | 16,932,754 | | | | | $ | 9,519,725 | | |
| Working Capital (Deficit) | | | | $ | (13,923,215) | | | | | $ | (8,240,299) | | |
| | | 2021 | | | 2020 | | ||||||
% Refunds due to Normal Course of Business | | | | | 15.6% | | | | | | 16.3% | | |
% Covid Related Refunds | | | | | 18.1% | | | | | | 22.7% | | |
Total | | | | | 33.7% | | | | | | 38.9% | | |
| | | As of 3/31/22 | | | 2021 | | | 2020 | | |||||||||
Total Refunds | | | | | 22.6% | | | | | | 33.7% | | | | | | 38.9% | | |
| | | Payments Due by Period | | |||||||||||||||||||||||||||
| Total | | | 1 Year | | | 2 – 3 Years | | | 4 – 5 Years | | | More than 5 Years | | |||||||||||||||||
Loans payable | | | | $ | 8,474 | | | | | $ | 3,550 | | | | | $ | 3,872 | | | | | $ | 67 | | | | | $ | 985 | | |
| | | Payments Due by Period | | | | Payments Due by Period | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | | 1 Year | | 2 – 3 Years | | 4 – 5 Years | | More than 5 Years | | | Total | | 1 Year | | 2 – 3 Years | | 4 – 5 Years | | More than 5 Years | | |||||||||||||||||||||||||||||||||||||||||
Loans payable | | | $ | 8,285 | | | | $ | 4,010 | | | | $ | 3,414 | | | | $ | 32 | | | | $ | 829 | | | ||||||||||||||||||||||||||||||||||||
Operating Lease Obligations(1) | | | | 59,339 | | | | | 9,558 | | | | | 11,912 | | | | | 10,881 | | | | | 26,298 | | | | | | 56,537 | | | | | 9,455 | | | | | 11,647 | | | | | 9,821 | | | | | 25,614 | | | ||||||||||
Total | | | $ | 67,813 | | | | $ | 13,108 | | | | $ | 15,784 | | | | $ | 10,948 | | | | $ | 27,283 | | | | | $ | 64,822 | | | | $ | 13,465 | | | | $ | 15,061 | | | | $ | 9,853 | | | | $ | 26,443 | | | ||||||||||
|
Property | | | # of Units | | | Property Type | | | Lease Type | | | Lease Terms | | | Star Quality Rating | | | Maintenance Obligations | |
1200 Ocean Dr Miami Beach, FL 33139 | | | 24 | | | Commercially-zoned apartment building that is licensed for Short Term Rentals | | | Triple Net(1) | | | 10-year lease with 3% rent escalation annually | | | 3-Star Property | | | CorpHousing Is responsible for maintenance for non-commercial portion of building | |
1700 Alton Rd Miami Beach, FL 33139 | | | 68 | | | Licensed hotel | | | Triple Net(1) | | | 6-year lease with 3% rent escalations annually | | | 3-Star Property | | | CorpHousing Is responsible for maintenance for non-commercial portion of building | |
1228 Collins Ave, Miami Beach, FL 33139 | | | 48 | | | Licensed hotel | | | Triple Net(1) | | | 5-year lease with 3% rent escalations annually | | | 3.5-Star Property | | | CorpHousing Is responsible for maintenance for non-commercial portion of building | |
136 W 55th St, New York, NY 10105 | | | 118 | | | Licensed hotel | | | Triple Net(1) | | | with 3% rent escalation annually | | | 4-Star Property | | | CorpHousing Is responsible for maintenance for non-commercial portion of building | |
956 Washington Ave, Miami Beach, FL 33139 | | | 42 | | | Licensed hotel | | | Triple Net | | | 5-year lease with 4% escalation beginning in year three | | | 3.5-Star Property | | | CorpHousing is responsible for maintenance for non-commercial portion of building | |
960 Sixth Ave, New York, NY 10001 | | | 167 | | | Licensed hotel | | | Triple Net | | | 15-year lease with 3% escalation beginning year seven | | | 3-Star Property | | | CorpHousing is responsible for maintenance for non-commercial portion of building | |
765 8th Ave, New York, NY 10036 | | | 44 | | | Licensed hotel | | | Triple Net | | | 10-year lease with 3.5% escalation beginning year three | | | 3-Star Property | | | CorpHousing is responsible for maintenance for non-commercial portion of building | |
1000 29th Street NW, Washington, DC 20007 | | | 80 | | | Licensed hotel | | | Triple Net | | | 10-year lease | | | 3-Star Property | | | CorpHousing is responsible for maintenance for non-commercial portion of building | |
| • Hassel-free experience | | | - | | | Easy, orderly, pleasant interactions | |
| • Expectations exceeded | | | - | | | Delighted people and exception experiences | |
| • Rave reviews posted | | | - | | | Public recognition of our Heroic service | |
| • Our brands remembered | | | - | | | Favorable recognition of our brands | |
| • Information shared | | | - | | | Social media and word-of-mouth marketing | |
| • Committed to return | | | - | | | Relationships established or repeat visits | |
Name | | | Age | | | Position | |
Brian Ferdinand | | | | | Chief Executive Officer and Chairman of the Board | | |
David Gurfein | | | 56 | | | President and Chief Operating Officer | |
Shanoop Kothari | | | 49 | | | Chief Financial Officer (Principal Financial Officer) | |
Karl Rothman | | | 55 | | | Chief Accounting Officer (Principal Accounting Officer) | |
Kevin J. Mikolashek | | | 51 | | | Chief Compliance Officer | |
Jimmie Chatmon | | | 28 | | | Executive Vice President and Director | |
Leonard Toboroff | | | 89 | | | | |
David Berg | | | 36 | | | Director Nominee | |
Donald Engel | | | 87 | | | Director | |
Aimee J. Nelson | | | 44 | | | Director | |
Jeffrey Webb | | | 72 | | | Director | |
Name and Principal Position | | | Salary ($) | | | Bonus ($) | | | Option Awards ($) | | | Non-Equity Incentive Compensation ($) | | | All Other Compensation ($) | | | Total ($) | | ||||||||||||||||||
Brian Ferdinand(1) 2020 | | | | $ | 358,593 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 358,593 | | |
2021 | | | | $ | 721,506 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 721,506 | | |
David Gurfein(2) 2020 | | | | $ | 53,250 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 53,250 | | |
2021 | | | | $ | 7,560 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 7,560 | | |
Karl Rothman(3) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2020 | | | | | 28,500 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 28,500 | | |
2021 | | | | | 98,000 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 98,000 | | |
Name | | Shares of Common Stock Owned Pre-Offering(1) | | Percentage Ownership Prior to Offering | | Shares of Common Stock Owned Post-Offering | | Percentage Ownership Following Offering | | | Shares of Common Stock Owned Pre-Offering(1) | | Percentage Ownership Prior to Offering | | Shares of Common Stock Owned Post-Offering | | Percentage Ownership Following Offering | | ||||||||||||||||||||||||||||||||
Brian Ferdinand, Chairman and Chief Executive Officer (2) | | | | 16,132,500 | | | | | 74.4% | | | | | 16,923,464 | | | | | 67.2% | | | | | | 15,929,943 | | | | | 73.5% | | | | | 16,805,128 | | | | | 59.7% | | | ||||||||
Jimmie Chatmon, Executive Vice President and Director (3) | | | | 2,132,443 | | | | | 9.8% | | | | | 2,132,443 | | | | | 8.6% | | | | | | 2,000,000 | | | | | 9.2% | | | | | 2,000,000 | | | | | 7.1% | | | ||||||||
David Gurfein, President and Chief Operating Officer(4) | | | | 909,199 | | | | | 4.2% | | | | | 909,199 | | | | | 3.7% | | | | | | 1,119,199 | | | | | 5.2% | | | | | 1,119,199 | | | | | 4.0% | | | ||||||||
Shanoop Kothari, Chief Financial Officer(5) | | | | 100,000 | | | | | 0.5% | | | | | 201,852 | | | | | 0.8% | | | | | | 225,000 | | | | | 1.0% | | | | | 354,630 | | | | | 1.3% | | | ||||||||
Karl Rothman, Chief Accounting Officer(6) | | | | — | | | | | — | | | | | — | | | | | — | | | | | | — | | | | | — | | | | | — | | | | | — | | | ||||||||
Kevin J. Mikolashek, Chief Compliance Officer(7) | | | | — | | | | | — | | | | | — | | | | | — | | | | | | — | | | | | — | | | | | — | | | | | — | | | ||||||||
Leonard Toboroff, Director(8) | | | | 362,500 | | | | | 1.7% | | | | | 382,870 | | | | | 1.5% | | | | | | 362,500 | | | | | 1.7% | | | | | 388,426 | | | | | 1.4% | | | ||||||||
Aimee J. Nelson, Director Nominee | | | | — | | | | | — | | | | | — | | | | | — | | | | | | — | | | | | — | | | | | — | | | | | — | | | ||||||||
Jeffrey Webb, Director Nominee | | | | — | | | | | — | | | | | — | | | | | — | | | | | | — | | | | | — | | | | | — | | | | | — | | | ||||||||
David Berg, Director Nominee | | | | — | | | | | — | | | | | — | | | | | — | | | | | | — | | | | | — | | | | | — | | | | | — | | | ||||||||
Donald Engel, Director Nominee | | | | — | | | | | — | | | | | — | | | | | — | | | | | | — | | | | | — | | | | | — | | | | | — | | |
Name | | Shares of Common Stock Owned Pre-Offering(1) | | Percentage Ownership Prior to Offering | | Shares of Common Stock Owned Post-Offering | | Percentage Ownership Following Offering | | | Shares of Common Stock Owned Pre-Offering(1) | | Percentage Ownership Prior to Offering | | Shares of Common Stock Owned Post-Offering | | Percentage Ownership Following Offering | | ||||||||||||||||||||||||||||||||
EBOL Holdings LLC(9) | | | | 1,510,306 | | | | | 7.0% | | | | | 1,565,862 | | | | | 6.2% | | | | | | 1,510,306 | | | | | 7.0% | | | | | 1,621,417 | | | | | 5.8% | | | ||||||||
All executive officers and directors (and nominees) as a group(10 ) | | | | 21,146,948 | | | | | 97.6% | | | | | 21,900,875 | | | | | 87.4% | | | |||||||||||||||||||||||||||||
All executive officers and directors (and nominees) as a group (10) | | | | 21,146,948 | | | | | 97.6% | | | | | 22,288,800 | | | | | 79.1% | | |
Underwriter | | | Number of | | |||
Maxim Group LLC | | | | | [•] | | |
Joseph Gunnar & Co. LLC | | | | | [•] | | |
Total | | | | | [•] | | |
| | | Per | | | Total without Over-allotment Option | | | Total with Over-allotment Option | | |||||||||
Public offering price | | | | $ | [•] | | | | | $ | [•] | | | | | $ | [•] | | |
Underwriting discount (7.0%) | | | | $ | [•] | | | | | $ | [•] | | | | | $ | [•] | | |
Proceeds, before expenses, to us | | | | $ | [•] | | | | | $ | [•] | | | | | $ | [•] | | |
| | | Page | | |||
| | | | F-2 | | | |
Consolidated Financial Statements | | | | | | | |
| | | | F-3 | | | |
| | | | F-4 | | | |
| | | | F-5 | | | |
| | | | F-6 | | | |
| | | | F-7 | | |
| Consolidated Financial Statements | | | | | | | |
| | | | | F-16 | | | |
| | | | | F-17 | | | |
| | | | | F-18 | | | |
| | | | | F-19 | | | |
| | | | | F-20 | | |
| | | December 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
ASSETS | | | | | | | | | | | | | |
Current Assets | | | | | | | | | | | | | |
Cash | | | | $ | 6,998 | | | | | $ | 512 | | |
Processor retained funds | | | | | 56,864 | | | | | | 58,514 | | |
Prepaid expenses | | | | | 166,667 | | | | | | — | | |
Deferred offering costs | | | | | 771,954 | | | | | | — | | |
Security deposits | | | | | 276,943 | | | | | | — | | |
Total Current Assets | | | | $ | 1,279,426 | | | | | $ | 59,026 | | |
Other Assets | | | | | | | | | | | | | |
Furniture and equipment | | | | | 11,500 | | | | | | — | | |
Restricted cash | | | | | 1,100,000 | | | | | | — | | |
Security deposits | | | | | 1,377,010 | | | | | | 433,987 | | |
Total Other Assets | | | | | 2,488,510 | | | | | | 433,987 | | |
| | | | $ | 3,767,936 | | | | | $ | 493,013 | | |
LIABILITIES AND MEMBERS’ DEFICIT | | | | | | | | | | | | | |
Current Liabilities | | | | | | | | | | | | | |
Accounts payable and accrued expenses | | | | $ | 4,209,366 | | | | | $ | 3,772,919 | | |
Rents received in advance | | | | | 1,819,943 | | | | | | 858,538 | | |
Merchant cash advances – net of unamortized costs of $57,768 | | | | | 1,386,008 | | | | | | 320,079 | | |
Loans payable – current portion | | | | | 1,267,004 | | | | | | 355,182 | | |
Loans payable – SBA – PPP Loan – current portion | | | | | 815,183 | | | | | | 534,950 | | |
Loans payable – related parties – current portion | | | | | 22,221 | | | | | | 74,962 | | |
Total Current Liabilities | | | | | 9,519,725 | | | | | | 5,916,630 | | |
Long-term Liabilities | | | | | | | | | | | | | |
Loans payable | | | | | 925,114 | | | | | | 617,271 | | |
Loans payable – SBA – PPP Loan | | | | | — | | | | | | 280,233 | | |
Loans payable – SBA – EIDL Loan | | | | | 800,000 | | | | | | 800,000 | | |
Loans payable – related parties | | | | | 496,500 | | | | | | — | | |
Convertible loans payable – related parties | | | | | 2,608,860 | | | | | | 367,850 | | |
Line of credit | | | | | 94,975 | | | | | | 94,975 | | |
Deferred rent | | | | | 536,812 | | | | | | 211,698 | | |
Total Long-term Liabilities | | | | | 5,462,261 | | | | | | 2,372,052 | | |
Total Liabilities | | | | | 14,981,986 | | | | | | 8,288,682 | | |
Commitments and Contingencies | | | | | | | | | | | | | |
Members’ Deficit | | | | | (11,214,050) | | | | | | (7,795,669) | | |
| | | | $ | 3,767,936 | | | | | $ | 493,013 | | |
| | | For the Years Ended December 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Rental Revenue | | | | $ | 32,223,365 | | | | | $ | 13,540,488 | | |
Refunds and Allowances | | | | | 10,843,452 | | | | | | 5,266,629 | | |
Net Rental Revenue | | | | | 21,379,913 | | | | | | 8,273,859 | | |
Cost of Revenue | | | | | 19,269,153 | | | | | | 11,232,643 | | |
Gross Profit (Loss) Profit | | | | | 2,110,760 | | | | | | (2,958,784) | | |
General and Administrative Expenses | | | | | | | | | | | | | |
Administrative and other | | | | | 2,680,005 | | | | | | 1,045,728 | | |
Professional fees | | | | | 164,632 | | | | | | 61,512 | | |
Total General and Administrative Expenses | | | | | 2,844,637 | | | | | | 1,107,240 | | |
Loss from Operations | | | | | (733,877) | | | | | | (4,066,024) | | |
Other Income (Expense) | | | | | | | | | | | | | |
Other income | | | | | 127,058 | | | | | | 28,068 | | |
Interest and financing costs | | | | | (1,626,565) | | | | | | (577,769) | | |
Total Other Expense | | | | | (1,499,507) | | | | | | (549,701) | | |
Net Loss | | | | $ | (2,233,384) | | | | | $ | (4,615,725) | | |
| | | For the Years Ended December 31, 2021 and 2020 | | | | | |||
Balance – January 1, 2020 | | | | $ | (2,106,933) | | | | ||
Net loss | | | | | (4,615,725) | | | | ||
Contributions | | | | | 500,884 | | | | ||
Distributions | | | | | (1,573,895) | | | | ||
Balance – December 31, 2020 | | | | | (7,795,669) | | | | ||
Net loss | | | | | (2,233,384) | | | | ||
Contributions | | | | | 72,082 | | | | ||
Distributions | | | | | (1,257,079) | | | | ||
Balance – December 31, 2021 | | | | $ | (11,214,050) | | | |
| | For the Years Ended December 31, | | | For the Years Ended December 31, | | ||||||||||||||||||||
| | 2021 | | 2020 | | | 2021 | | 2020 | | ||||||||||||||||
Cash Flows from Operating Activities | | | | | | | | | | | | | | | | | | | | | | | ||||
Net loss | | | $ | (2,233,384) | | | | $ | (4,615,725) | | | | | $ | (2,233,384) | | | | $ | (4,615,725) | | | ||||
Adjustments to reconcile net loss to net cash used in operating activities: | | | | | | | | | | | | | | | | | | | | | | | ||||
Changes in operating assets and liabilities: | | | | | | | | | | | | | | | | | | | | | | | ||||
(Increase) Decrease in: | | | | | | | | | | | | | | | | | | | | | | | ||||
Processor retained funds | | | | 1,650 | | | | | (40,526) | | | | | | 1,650 | | | | | (40,526) | | | ||||
Prepaid expenses and other assets | | | | (938,621) | | | | | — | | | | | | (938,621) | | | | | — | | | ||||
Security deposits | | | | (1,219,966) | | | | | (120,337) | | | | | | (1,219,966) | | | | | (120,337) | | | ||||
Increase in: | | | | | | | | | | | | | | | | | | | | | | | ||||
Accounts payable and accrued expenses | | | | 436,447 | | | | | 3,275,838 | | | | | | 436,447 | | | | | 3,275,838 | | | ||||
Deferred rent | | | | 325,114 | | | | | 23,948 | | | | | | 325,114 | | | | | 23,948 | | | ||||
Rents received in advance | | | | 961,405 | | | | | 240,508 | | | | | | 961,405 | | | | | 240,508 | | | ||||
Net cash used in operating activities | | | | (2,667,355) | | | | | (1,236,294) | | | | | | (2,667,355) | | | | | (1,236,294) | | | ||||
Cash Flows from Investing Activities | | | | | | | | | | | | | | | | | | | | | | | ||||
Purchase of furniture and equipment | | | | (11,500) | | | | | — | | | | | | (11,500) | | | | | — | | | ||||
Net cash used in investing activities | | | | (11,500) | | | | | — | | | | | | (11,500) | | | | | — | | | ||||
Cash Flows from Financing Activities | | | | | | | | | | | | | | | | | | | | | | | ||||
Proceeds from loans payable – net | | | | 1,219,665 | | | | | 651,423 | | | | | | 1,219,665 | | | | | 651,423 | | | ||||
Proceeds from loans payable – SBA – PPP loan | | | | — | | | | | 815,183 | | | | | | — | | | | | 815,183 | | | ||||
Proceeds from loans payable – SBA – EIDL loan | | | | — | | | | | 800,000 | | | | | | — | | | | | 800,000 | | | ||||
Proceeds from (repayments of) related party loans payable and convertible note | | | | 2,684,744 | | | | | (1,720) | | | | | | 2,684,744 | | | | | (1,720) | | | ||||
Proceeds from merchant cash advances – net | | | | 1,065,929 | | | | | 29,891 | | | | | | 1,065,929 | | | | | 29,891 | | | ||||
Contributions from members | | | | 72,082 | | | | | 500,884 | | | | | | 72,082 | | | | | 500,884 | | | ||||
Distributions to members | | | | (1,257,079) | | | | | (1,573,895) | | | | | | (1,257,079) | | | | | (1,573,895) | | | ||||
Net cash provided by financing activites | | | | 3,785,341 | | | | | 1,221,766 | | | |||||||||||||||
Net cash provided by financing activities | | | | 3,785,341 | | | | | 1,221,766 | | | |||||||||||||||
Net Increase (Decrease) in Cash and Restricted Cash | | | | 1,106,486 | | | | | (14,528) | | | | | | 1,106,486 | | | | | (14,528) | | | ||||
Cash, and Restricted Cash – beginning | | | | 512 | | | | | 15,040 | | | | | | 512 | | | | | 15,040 | | | ||||
Cash, and Restricted Cash – end | | | $ | 1,106,998 | | | | $ | 512 | | | | | $ | 1,106,998 | | | | $ | 512 | | | ||||
Cash | | | $ | 6,998 | | | | $ | 512 | | | | | $ | 6,998 | | | | $ | 512 | | | ||||
Restricted Cash | | | | 1,100,000 | | | | | — | | | | | | 1,100,000 | | | | | — | | | ||||
Total Cash and Restricted Cash | | | $ | 1,106,998 | | | | $ | 512 | | | | | $ | 1,106,998 | | | | $ | 512 | | | ||||
Supplemental Disclosures of Cash Flow Information | | | | | | | | | | | | | | | | | | | | | | | ||||
Cash paid for: | | | | | | | | | | | | | | | | | | | | | | | ||||
Interest | | | $ | 1,333,677 | | | | $ | 434,587 | | | | | $ | 1,333,677 | | | | $ | 434,587 | | | ||||
Noncash financing activities: | | | | | | | | | | | | | | | | | | | | | | | ||||
Imputed interest on related party loans with below market interest rates reported as contributions from members | | | $ | — | | | | $ | 25,140 | | | | | $ | — | | | | $ | 25,140 | | |
| | | 2021 | | | 2020 | | ||||||
Cash | | | | | 6,998 | | | | | | 512 | | |
Restricted Cash | | | | | 1,100,000 | | | | | | — | | |
Cash and restricted cash | | | | | 1,106,998 | | | | | | 512 | | |
For the Fiscal Years Ending | | | | | | | |
2022 | | | | $ | 1,460 | | |
2023 | | | | | 14,062 | | |
2024 | | | | | 14,826 | | |
2025 | | | | | 15,391 | | |
2026 | | | | | 15,979 | | |
Thereafter | | | | | 738,282 | | |
| | | | $ | 800,000 | | |
| | | December 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Original borrowings of $100,000, bears interest at 1%, requires no payments until maturity in March 2024 | | | | $ | 20,500 | | | | | $ | 20,500 | | |
Original borrowings of $250,000, bears interest at 1%, requires no payments until maturity in January 2024 | | | | | 210,500 | | | | | | 210,500 | | |
Original borrowings of $20,000, bears interest at 1%, and is payable on demand | | | | | — | | | | | | 20,000 | | |
Original borrowings of $121,000, requires weekly payments of $5,822 until total payments of $139,728 have been made. The loan is personally guaranteed by the managing member and originally matured in March of 2020. Maturity date was extended to 2021 when loan was satisfied | | | | | — | | | | | | 17,182 | | |
Original amounts due of $151,096, related to refunds remitted to customers by processor, increased by additional refunds, requires monthly payments of $1,500 until loan is paid in full. This loan fully matures after 2026 | | | | | 242,053 | | | | | | 151,096 | | |
Original amounts due of $195,000, related to services provided by a vendor, requires monthly payments of $10,000 through May 2022, then monthly payments of $25,000 through August 2022 at which time any remaining balance is due | | | | | 145,000 | | | | | | — | | |
Original amounts due of $553,175, related to refunds remitted to customers by processor, requires payments of $504,004 in 2022 and balance of loan in 2023 | | | | | 553,175 | | | | | | 553,175 | | |
Related to refunds remitted to customers by processor, increased by additional refunds, requires monthly payments of $50,000 through August 31, 2023 at which time any remaining balance is due | | | | | 1,020,890 | | | | | | — | | |
| | | | | 2,192,118 | | | | | | 972,453 | | |
Less: Current maturities | | | | | 1,267,004 | | | | | | 355,182 | | |
| | | | $ | 925,114 | | | | | $ | 617,271 | | |
For the Fiscal Years Ending | | | | | | | |
2022 | | | | $ | 1,267,004 | | |
2023 | | | | | 488,061 | | |
2024 | | | | | 249,000 | | |
2025 | | | | | 18,000 | | |
2026 | | | | | 18,000 | | |
Thereafter | | | | | 152,053 | | |
| | | | $ | 2,192,118 | | |
| | | December 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Original borrowings of $87,000, bears interest at 1%, requires no payments until maturity in December 2021. Lender is controlled by the managing member | | | | $ | — | | | | | $ | 46,150 | | |
Original borrowings of $4,975, no stated repayment terms — lender is owned and controlled by the managing member | | | | | — | | | | | | 4,975 | | |
Original borrowings of $275,000, bears interest at various rates based on the lenders borrowing rates, requires various payments in accordance with the loan agreement until maturity in January 2020 when all unpaid principal and interest is due — maturity date was extended into 2021 and balance was satisfied in 2021. Lender is a member of the Company | | | | | — | | | | | | 23,837 | | |
| | December 31, | | | December 31, | | ||||||||||||||||||||
| | 2021 | | 2020 | | | 2021 | | 2020 | | ||||||||||||||||
Original borrowings of $87,000, bears interest at 1%, requires no payments until maturity in December 2021. Lender is controlled by the managing member | | | $ | — | | | | $ | 46,150 | | | |||||||||||||||
Original borrowings of $4,975, no stated repayment terms — lender is owned and controlled by the managing member | | | | — | | | | | 4,975 | | | |||||||||||||||
Original borrowings of $275,000, bears interest at various rates based on the lenders borrowing rates, requires various payments in accordance with the loan agreement until maturity in January 2020 when all unpaid principal and interest is due — maturity date was extended into 2021 and balance was satisfied in 2021. Lender is a member of the Company | | | | — | | | | | 23,837 | | | |||||||||||||||
Original borrowings of $496,500, bears interest at 6%, requires no payments until maturity in May 2023. Lender is a member of the Company | | | | 496,500 | | | | | — | | | | | | 496,500 | | | | | — | | | ||||
Original borrowings of $150,000, bears interest at various rates based on the lenders borrowing rates. No stated repayment terms. Lender is controlled by the managing member of the Company and owned by his spouse | | | | 22,221 | | | | | — | | | | | | 22,221 | | | | | — | | | ||||
| | | | 518,721 | | | | | 74,962 | | | | | | 518,721 | | | | | 74,962 | | | ||||
Less: Current maturities | | | | 22,221 | | | | | 74,962 | | | | | | 22,221 | | | | | 74,962 | | | ||||
| | | $ | 496,500 | | | | $ | — | | | | | $ | 496,500 | | | | $ | — | | | ||||
|
For the Fiscal Years Ending | | | | | | | |
2022 | | | | $ | 22,221 | | |
2023 | | | | | 496,500 | | |
| | | | $ | 518,721 | | |
| | | December 31, | | |||||||||
| | | 2021 | | | 2022 | | ||||||
Convertible revolving credit line of $650,000, bears interest at 1%, requires no payments until maturity in March 2024. Contingently convertible upon certain triggering events, at the holder’s option, but no earlier than maturity, at a conversion ratio equal to 1% of enterprise value measured at conversion. Lender is related to the managing member | | | | | 642,841 | | | | | | 367,875 | | |
Original borrowings of $1,966,019, bears interest at 6%, requires no payments until maturity in April 2023. Lender is related to the managing member. Contingently convertible upon certain triggering events, at the holder’s option upon an initial public offering | | | | | 1,966,019 | | | | | | — | | |
| | | | $ | 2,608,860 | | | | | | 367,857 | | |
Less: Current maturities | | | | | — | | | | | | — | | |
| | | | $ | 2,608,860 | | | | | $ | 367,857 | | |
For the Fiscal Years Ending | | | | | | | |
2022 | | | | $ | — | | |
2023 | | | | | 1,966,019 | | |
2024 | | | | | 642,841 | | |
| | | | $ | 2,608,860 | | |
For the Fiscal Years Ending | | | | | | | |
2022 | | | | $ | 9,558,000 | | |
2023 | | | | | 6,162,000 | | |
2024 | | | | | 5,750,000 | | |
2025 | | | | | 5,671,000 | | |
2026 | | | | | 5,210,000 | | |
Thereafter | | | | | 26,988,000 | | |
| | | | $ | 69,466,000 | | |
| | | March 31, 2022 | | | December 31, 2021 | | ||||||
ASSETS | | | | | | | | | | | | | |
Current Assets | | | | | | | | | | | | | |
Cash | | | | $ | 62,189 | | | | | $ | 6,998 | | |
Processor retained funds | | | | | 1,646,981 | | | | | | 56,864 | | |
Prepaid expenses and other current assets | | | | | 204,380 | | | | | | 166,667 | | |
Deferred offering costs | | | | | 815,733 | | | | | | 771,954 | | |
Security deposits – current | | | | | 280,256 | | | | | | 276,943 | | |
Total Current Assets | | | | $ | 3,009,539 | | | | | $ | 1,279,426 | | |
Other Assets | | | | | | | | | | | | | |
Furniture and equipment, net | | | | | 11,500 | | | | | | 11,500 | | |
Restricted cash | | | | | 1,100,000 | | | | | | 1,100,000 | | |
Security deposits – noncurrent | | | | | 1,573,697 | | | | | | 1,377,010 | | |
Operating lease right-of-use asset, net | | | | | 34,200,654 | | | | | | — | | |
Total Other Assets | | | | | 36,885,851 | | | | | | 2,488,510 | | |
Total Assets | | | | $ | 39,895,390 | | | | | $ | 3,767,936 | | |
LIABILITIES AND STOCKHOLDERS’ DEFICIT | | | | | | | | | | | | | |
Current Liabilities | | | | | | | | | | | | | |
Accounts payable and accrued expenses | | | | $ | 4,194,965 | | | | | $ | 4,209,366 | | |
Rents received in advance | | | | | 2,430,274 | | | | | | 1,819,943 | | |
Merchant cash advances – net of unamortized costs of $44,935 and $57,768, respectively | | | | | 1,756,183 | | | | | | 1,386,008 | | |
Loans payable – current portion | | | | | 1,220,054 | | | | | | 1,267,004 | | |
Loans payable – SBA – PPP Loan – current portion | | | | | 815,183 | | | | | | 815,183 | | |
Loans payable – related parties – current portion | | | | | 170,225 | | | | | | 22,221 | | |
Operating lease liability – current | | | | | 6,345,870 | | | | | | — | | |
Total Current Liabilities | | | | | 16,932,754 | | | | | | 9,519,725 | | |
Long-Term Liabilities | | | | | | | | | | | | | |
Loans payable | | | | | 545,789 | | | | | | 925,114 | | |
Loans payable – SBA – EIDL Loan | | | | | 800,000 | | | | | | 800,000 | | |
Loans payable – related parties | | | | | 486,000 | | | | | | 496,500 | | |
Convertible loans payable – related parties | | | | | 2,351,171 | | | | | | 2,608,860 | | |
Line of credit | | | | | 94,975 | | | | | | 94,975 | | |
Deferred rent | | | | | — | | | | | | 536,812 | | |
Operating lease liability | | | | | 28,893,691 | | | | | | — | | |
Total Long-term Liabilities | | | | | 33,171,626 | | | | | | 5,462,261 | | |
Total Liabilities | | | | | 50,104,380 | | | | | | 14,981,986 | | |
Commitments and Contingencies | | | | | | | | | | | | | |
Stockholders’ Deficit | | | | | | | | | | | | | |
Members’ Deficit | | | | | — | | | | | | (11,214,050) | | |
Common stock (shares authorized, issued and outstanding – 90,000,000; 21,675,001; 21,675,001; respectively) | | | | | 216 | | | | | | — | | |
Additional paid in capital | | | | | — | | | | | | — | | |
Retained earnings | | | | | (10,209,206) | | | | | | — | | |
Total Stockholders’ Deficit | | | | | (10,208,990) | | | | | | (11,214,050) | | |
Total Liabilities and Stockholders’ Deficit | | | | $ | 39,895,390 | | | | | $ | 3,767,936 | | |
| | | Three Months Ended | | |||||||||
| | | March 31, 2022 | | | March 31, 2021 | | ||||||
Rental Revenue | | | | $ | 11,762,899 | | | | | $ | 4,960,187 | | |
Refunds and Allowances | | | | | 2,663,474 | | | | | | 1,654,158 | | |
Net Rental Revenue | | | | | 9,099,425 | | | | | | 3,306,029 | | |
Cost of Revenue | | | | | 6,586,162 | | | | | | 3,885,293 | | |
Gross Profit (Loss) | | | | | 2,513,263 | | | | | | (579,264) | | |
General and Administrative Expenses | | | | | | | | | | | | | |
Administrative and other | | | | | 750,621 | | | | | | 557,418 | | |
Professional fees | | | | | 228,985 | | | | | | 53,014 | | |
Total General and Administrative Expenses | | | | | 979,606 | | | | | | 610,432 | | |
Net Income (Loss) Before Other Income (Expense) | | | | | 1,533,657 | | | | | | (1,189,696) | | |
Other Income (Expense) | | | | | | | | | | | | | |
Other income | | | | | 449,913 | | | | | | 33 | | |
Interest and financing costs | | | | | (564,137) | | | | | | (117,243) | | |
Total Other Expenses | | | | | (114,224) | | | | | | (117,210) | | |
Net Income (Loss) | | | | $ | 1,419,433 | | | | | $ | (1,306,906) | | |
Basic and diluted earnings (loss) per common share | | | | $ | 0.07 | | | | | $ | — | | |
Basic and diluted weighted average number of common stock outstanding | | | | | 21,675,001 | | | | | | — | | |
| | | Common Stock | | | Members’ Deficit | | | Additional Paid-In Capital | | | Retained Earnings | | | Stockholders’ Deficit | | |||||||||||||||||||||
Balance – December 31, 2020 partnership equity | | | | | — | | | | | | — | | | | | $ | (7,795,669) | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Net Loss | | | | | | | | | | | | | | | | | (1,306,906) | | | | | | | | | | | | | | | | | | | | |
Contributions | | | | | | | | | | | | | | | | | 33,821 | | | | | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | (568,485) | | | | | | | | | | | | | | | | | | | | |
Balance – March 31, 2021 partnership equity | | | | | | | | | | | | | | | | $ | (9,637,239) | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance – December 31, 2021 partnership equity, previously reported | | | | | — | | | | | | — | | | | | $ | (11,214,050) | | | | | $ | — | | | | | $ | — | | | | | $ | (11,214,050) | | |
Cumulative effect of changes in accounting principle | | | | | — | | | | | | — | | | | | | (414,373) | | | | | | — | | | | | | — | | | | | | (414,373) | | |
Conversion to C Corp | | | | | 216,000 | | | | | | 216 | | | | | | 11,628,423 | | | | | | — | | | | | | (11,628,639) | | | | | | — | | |
Net Income | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,419,433 | | | | | | 1,419,433 | | |
Balance – March 31, 2022 | | | | | 216,000 | | | | | $ | 216 | | | | | $ | — | | | | | $ | — | | | | | $ | (10,209,206) | | | | | $ | (10,208,990) | | |
| | | Three Months Ended | | |||||||||
| | | March 31, 2022 | | | March 31, 2021 | | ||||||
Cash Flows from Operating Activities | | | | | | | | | | | | | |
Net Income (Loss) | | | | $ | 1,419,433 | | | | | $ | (931,929) | | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | | | | | | | | | | | | | |
Changes in operating assets and liabilities: | | | | | | | | | | | | | |
(Increase) in: | | | | | | | | | | | | | |
Processor retained funds | | | | | (1,590,117) | | | | | | (24,289) | | |
Prepaid expenses and other assets | | | | | (37,713) | | | | | | — | | |
Security deposits | | | | | (200,000) | | | | | | (18,310) | | |
Operating lease right-of-use asset | | | | | (34,200,654) | | | | | | — | | |
Increase (Decrease) in: | | | | | | | | | | | | | |
Accounts payable and accrued expenses | | | | | (14,401) | | | | | | (207,675) | | |
Deferred rent | | | | | (951,185) | | | | | | 163,279 | | |
Operating lease liability | | | | | 35,239,561 | | | | | | — | | |
Rents received in advance | | | | | 610,331 | | | | | | 1,719,484 | | |
Net cash provided from operating activities | | | | | 275,255 | | | | | | 325,583 | | |
Cash Flows from Financing Activities | | | | | | | | | | | | | |
Deferred offering costs – net | | | | | (43,779) | | | | | | — | | |
Proceeds from (repayments of) loans payable – net | | | | | (426,275) | | | | | | (22,416) | | |
Proceeds from (repayments of) loans payable – related parties – net | | | | | (120,185) | | | | | | 47,014 | | |
Proceeds from (repayments of) merchant cash advances – net | | | | | 370,175 | | | | | | 184,064 | | |
Contributions from members | | | | | — | | | | | | 33,821 | | |
Distributions to members | | | | | — | | | | | | (568,485) | | |
Net cash used in financing activities | | | | | (220,064) | | | | | | (326,002) | | |
Net Increase in Cash and Restricted Cash | | | | | 55,191 | | | | | | (419) | | |
Cash and Restricted Cash – beginning | | | | | 1,106,998 | | | | | | 512 | | |
Total Cash and Restricted Cash – end | | | | | 1,162,189 | | | | | | 93 | | |
Cash | | | | | 62,189 | | | | | | 93 | | |
Restricted Cash | | | | | 1,100,000 | | | | | | — | | |
Total Cash and Restricted Cash | | | | $ | 1,162,189 | | | | | $ | 93 | | |
Supplemental Disclosures of Cash Flow Information | | | | | | | | | | | | | |
Cash paid for: | | | | | | | | | | | | | |
Interest | | | | $ | 421,275 | | | | | $ | — | | |
| Operating lease right of use asset | | | | $ | 34,200,654 | | |
| Operating lease liability, current portion | | | | $ | 6,345,870 | | |
| Operating lease liability, net of current portion | | | | $ | 28,893,691 | | |
| Twelve Months Ending March 31, | | | | | | | |
| 2023 | | | | $ | 9,447,500 | | |
| 2024 | | | | | 5,942,153 | | |
| 2025 | | | | | 5,704,710 | | |
| 2026 | | | | | 5,739,476 | | |
| 2027 | | | | | 4,082,388 | | |
| Thereafter | | | | | 25,613,495 | | |
| Total lease payment | | | | $ | 56,529,723 | | |
| | | March 31, 2022 | |
Weighted average discount rate | | | 10% | |
Weighted average remaining lease term (years) | | | 9.3 years | |
| | | Three Months Ended March 31, 2022 | | |||
Operating lease cost | | | | $ | 3,509,345 | | |
Total lease cost | | | | $ | 3,509,345 | | |
For the Twelve Months Ending March 31, | | ||||||
2023 | | | | $ | 815,183 | | |
For the Twelve Months Ending March 31, | | ||||||
2023 | | | | $ | 3,667 | | |
2024 | | | | | 15,511 | | |
2025 | | | | | 14,965 | | |
2026 | | | | | 15,536 | | |
2027 | | | | | 16,128 | | |
Thereafter | | | | | 734,193 | | |
| | | | $ | 800,000 | | |
| | | March 31, 2022 | | | December 31, 2021 | | ||||||
Original borrowings of $100,000, bears interest at 1%, requires no payments until maturity in March 2024 | | | | $ | 20,500 | | | | | $ | 20,500 | | |
Original borrowings of $250,000, bears interest at 1%, requires no payments until maturity in January 2024 | | | | | 210,500 | | | | | | 210,500 | | |
Original payable of $151,096 with additional net borrowings of $89,154, requires monthly payments of $1,500 until total payments of $240,250 have been made | | | | | 1,051 | | | | | | 242,053 | | |
Original payable of $553,175 with additional net borrowings of $125,412, requires monthly payments of $25,000 until total payments of $678,587 have been made | | | | | 553,175 | | | | | | 553,175 | | |
Original payable of $492,180, requires monthly payments of $25,000 until total payments of $492,180 have been made | | | | | 865,618 | | | | | | 1,020,890 | | |
Original amounts due of $195,000, related to services provided by a vendor, requires monthly payments of $10,000 through May 2022, then monthly payments of $25,000 through August 2022 at which time any remaining balance is due | | | | | 115,000 | | | | | | 145,000 | | |
| | | | | 1,765,844 | | | | | | 2,192,118 | | |
Less: Current maturities | | | | | 1,220,054 | | | | | | 1,267,004 | | |
| | | | $ | 545,789 | | | | | $ | 925,114 | | |
For the Twelve Months Ending March 31, | | | | | | | |
2023 | | | | $ | 1,534,844 | | |
2024 | | | | | 231,000 | | |
| | | | $ | 1,765,844 | | |
| | | March 31, 2022 | | | December 31, 2021 | | ||||||
Original borrowings of $496,500, bears interest at 6%, requires no payments until maturity in May 2023. Lender is a stockholder of the Company | | | | $ | 486,000 | | | | | $ | 496,500 | | |
Original borrowings of $150,000, bears interest at various rates based on the lenders borrowing rates. No stated repayment terms. Lender is controlled by the managing stockholder and owned by his spouse | | | | | 170,225 | | | | | | 22,221 | | |
| | | | | 656,225 | | | | | | 518,721 | | |
Less: Current maturities | | | | | 170,225 | | | | | | 22,221 | | |
| | | | $ | 486,000 | | | | | $ | 496.500 | | |
For the Twelve Months Ending March 31, | | ||||||
2023 | | | | $ | 170,225 | | |
2024 | | | | | 486,000 | | |
| | | | $ | 656,225 | | |
| | | March 31, 2022 | | | December 31, 2021 | | ||||||
Original borrowings of $1,966,019, bears interest at 6%, requires no payments until maturity in April 2023. Lender is related to the managing stockholder. Contingently convertible upon certain triggering events, at the holder’s option upon an initial public offering | | | | $ | 1,684,404 | | | | | $ | 1,966,019 | | |
Convertible revolving credit line of $650,000, bears interest at 1%, requires no payments until maturity in March 2024. Contingently convertible upon certain triggering events, at the holder’s option, nut no earlier than maturity, at a conversion ratio equal to 1% of enterprise value measured at conversion. Lender is related to the managing stockholder | | | | | 666,767 | | | | | | 642,841 | | |
| | | | $ | 2,351,171 | | | | | $ | 2,608,860 | | |
Less: Current maturities | | | | | — | | | | | | — | | |
| | | | $ | 2,351,171 | | | | | $ | 2,608,860 | | |
For the Twelve Months Ending March 31, | | ||||||
2023 | | | | $ | — | | |
2024 | | | | | 1,684,404 | | |
2025 | | | | | 666,767 | | |
| | | | $ | 2,351,171 | | |
| SEC registration fee | | | | | $ | 4,018 | | | SEC registration fee | | | | | $ | 1,700 | | | ||||
| FINRA filing fee | | | | | | 7,300 | | | FINRA filing fee | | | | | | 7,300 | | | ||||
| NYSE American listing fee | | | | | | 150,000 | | | NYSE American listing fee | | | | | | 150,000 | | | ||||
| Transfer agent and registrar fees | | | | | | 8,000 | | | Transfer agent and registrar fees | | | | | | 8,000 | | | ||||
| Accounting fees and expenses | | | | | | 200,000 | | | Accounting fees and expenses | | | | | | 200,000 | | | ||||
| Legal fees and expenses | | | | | | 600,000 | | | Legal fees and expenses | | | | | | 600,000 | | | ||||
| Printing and engraving expenses | | | | | | 50,000 | | | Printing and engraving expenses | | | | | | 50,000 | | | ||||
| Miscellaneous | | | | | | 1,000 | | | Miscellaneous | | | | | | 1,000 | | | ||||
| Total | | | | | | 1,020,318 | | | Total | | | | | | 1,018,000 | | |
Exhibit No. | | | Description | |
1.1 | | | | |
3.1 | | | | |
3.1.1 | | | | |
3.2 | | | | |
3.3 | | | Certificate of Conversion from LLC to “C” corporation(*) | |
4.1 | | | | |
4.2 | | | | |
4.2.1 | | | | |
4.3 | | | | |
4.3.1 | | | | |
4.4 | | | | |
4.5 | | | Form of May/June 2022 Warrant | |
5.1 | | | | |
10.1 | | | | |
10.2 | | | | |
10.3 | | | | |
10.4 | | | | |
10.5 | | | | |
10.6 | | | | |
10.7 | | | | |
10.8 | | | | |
10.8.1 | | | | |
10.8.2 | | | | |
10.9 | | | | |
10.9.1 | | | | |
10.10 | ||||
| | | ||
| | | ||
10.12 | | | | |
10.13 | | | | |
10.14 | | | | |
10.15 | | | Securities Purchase Agreement, dated June 30, 2022(1) | |
10.16 | | | | |
10.17 | | | | |
10.18 | | | | |
23.1 | | | | |
23.2 | | | | |
99.1 | | | | |
99.2 | | | Consent of Jeffrey Webb(*) | |
99.3 | | | | |
99.4 | | | |
Exhibit No. | | | Description | |
99.5 | | | | |
99.6 | | | | |
99.7 | | | | |
107 | | | |
| | | | CORPHOUSING LLC | | ||||||
| | | | By: | | | /s/ Brian L. Ferdinand | | |||
| | | | | | | Name: | | | Brian L. Ferdinand | |
| | | | | | | Title: | | | Chief Executive Officer | |
| Name | | | Position | | | Date | |
| By: /s/ Brian L. Ferdinand | | | Brian L. Ferdinand Chairman and Chief Executive Officer (Principal Executive Officer) | | | | |
| By: /s/ David Gurfein | | | David Gurfein President and Chief Operating Officer | | | | |
| By: /s/ Shanoop Kothari | | | Shanoop Kothari Chief Financial Officer (Principal Financial Officer) | | | | |
| By: /s/ Karl Rothman | | | Karl Rothman Chief Accounting Officer (Principal Accounting Officer) | | | | |
| By: /s/ Jimmie Chatmon | | | Jimmie Chatmon Director | | | | |
| By: /s/ Leonard Toboroff | | | Leonard Toboroff Director | | | |