United States Securities And Exchange Commission
Washington, D.C. 20549
FORM 1-SA
☒ SEMIANNUAL REPORT PURSUANT TO REGULATION A
or
☐ SPECIAL FINANCIAL REPORT PURSUANT TO REGULATION A
For the fiscal semiannual period ended June 30, 2022
My Racehorse CA LLC
(Exact name of issuer as specified in its charter)
Nevada | 83-0848007 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
120 Kentucky Ave., Suite 110, Lexington, KY 40502
(Full mailing address of principal executive offices)
888-697-2234
(Issuer’s telephone number, including area code)
MY RACEHORSE CA LLC
SECTION | PAGE |
ITEM 1. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS | 1 |
ITEM 2. OTHER INFORMATION | 39 |
ITEM 3. FINANCIAL STATEMENTS | 40 |
ITEM 4. EXHIBITS | 59 |
i |
Use of Terms
Except as otherwise indicated by the context and for the purposes of this Semi-Annual Report only, references in this Semi-Annual Report to “we,” “us,” “our”, “MRH”, “our company”, or the “Company” refer to My Racehorse CA LLC, a Nevada series limited liability company.
Special Note Regarding Forward Looking Statements
Certain information contained in this Semi-Annual Report includes forward-looking statements. The statements herein which are not historical reflect our current expectations and projections about our company’s development plans for our business; our strategies and business outlook; anticipated development of the Company, the Manager, each Series of the Company and the MyRacehorse™ Platform (defined below), future results, performance, liquidity, financial condition, prospects and opportunities and are based upon information currently available to our company and our management and our interpretation of what is believed to be significant factors affecting the businesses, including many assumptions regarding future events.
Forward-looking statements, which involve assumptions and describe our future plans, strategies, and expectations, are generally identifiable by use of the words like “anticipates”, “believes”, “continue”, “could”, “estimates”, “expects”, “intends”, “may”, “might”, “plans”, “possible”, “potential”, “predicts”, “projects”, “seeks”, “should”, “will”, “would” and similar expressions and variations, or comparable terminology, or the negatives of any of the foregoing, but the absence of these words does not mean that a statement is not forward-looking. Actual results, performance, liquidity, financial condition, prospects and opportunities could differ materially from those expressed in, or implied by, these forward-looking statements as a result of various risks, uncertainties and other factors. Actual events or results may differ materially from those discussed in forward-looking statements as a result of various factors, including, without limitation, the risks outlined under “Risk Factors” included in our Offering Statement on Form 1-A (the “Offering Statement”; file no. 024-11808) filed with the Securities and Exchange Commission (the “Commission”) on February 22, 2022, and qualified by the Commission on May 2, 2022, as amended and supplemented by post-qualification amendments to date, and matters described in this Semi-Annual Report generally. In light of these risks and uncertainties, there can be no assurance that the forward-looking statements contained in this Semi-Annual Report will in fact occur.
Potential investors should not place undue reliance on any forward-looking statements, and should not make an investment decision based solely on these forward-looking statements. Except as expressly required by the federal securities laws, there is no undertaking to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances or any other reason.
Although the forward-looking statements in this Semi-Annual Report reflect the good faith judgment of our management, such statements can only be based on facts and factors currently known by them. The projections, estimates and expectations are presented in this Semi-Annual Report only as a guide about future possibilities and do not represent actual amounts or assured events. All the projections and estimates are based exclusively on our management’s own assessment of our business, the industry in which we work and the economy at large and other operational factors, including capital resources and liquidity, financial condition, fulfillment of contracts and opportunities. Consequently, and because forward-looking statements are inherently subject to risks and uncertainties, the Company cannot guarantee future results, and the actual results and outcomes may differ materially from the results and outcomes discussed in the forward-looking statements. You are urged to carefully review and consider the various disclosures made by us in this Semi-Annual Report, in the Offering Statement (and as amended and supplemented by post-qualification amendments to date) and in our other reports as we attempt to advise interested parties of the risks and factors that may affect our business, financial condition, and results of operations and prospects.
ii |
Item 1. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Overview
The Company was formed in the State of Nevada as a series limited liability company on December 27, 2016. Since our inception, we have been engaged primarily in acquiring a collection of horses for use in racing (each, an “Underlying Asset”). The Company, through individual Series, takes ownership in a particular racehorse or group of racehorses (all of the series of the Company offered in such racehorse(s) may collectively be referred to herein as the “Series”, and each, individually, as a “Series”; The interests of all Series in such racehorse(s) may collectively be referred to herein as the “Interests”, and each, individually, as an “Interest”). By doing so, the Company’s goal is to democratize the ownership of such racehorses, and allow fans to experience the thrill, perks and benefits of racehorse ownership at a fraction of the historical cost. This includes everything from the behind the scenes engagements with the racehorse, the jockey and trainers as well as exclusive on-track experiences, and a portion of financial gains that the ownership in such racehorse potentially creates if its breeding rights are sold, if it wins a “purse” at a racing event, if marketing or sponsorship ads are sold, or if it is claimed or sold.
We are managed by Experiential Squared, Inc. (“Experiential” or the “Manager”), a Delaware corporation incorporated in 2016. Experiential provides expert horse racing management services and owns and operates a mobile app-based crowd-funding platform called MyRacehorse™ (the MyRacehorse™ platform and any successor platform used by the Company for the offer and sale of Series interests, is referred to as the “MyRacehorse™ Platform”), which is licensed to the Company pursuant to the terms of that certain Management Services Agreement (the “Management Agreement”), through which Investors may indirectly invest, through Series of the Company’s interests, in fractional racehorse ownership interests that have been historically difficult to access for many market participants. Through the use of the MyRacehorse™ Platform, Investors can browse and screen racehorses, make potential investments in such racehorses, and sign legal documents electronically. It is the intent of the Company and its Manager to maintain control and input into the initial due diligence and subsequent training, maintenance and upkeep of the racehorses.
Experiential employs a team of horse racing experts that has allowed the Company to become one of the most successful horse racing stables in the United States over the past few years. The team has collectively over 100 years of experience buying, managing, and analyzing racehorses. This depth of expertise has led to over 86 wins since launching the stable in June of 2018 through June 2022. The wins have been achieved at the highest level in US horse racing including winning the Breeders’ Cup Classic and the Kentucky Derby. Experiential is considered a highly active racing manager through its strategically located staff in California, New York, and Kentucky (the three major markets for horse racing) and other racing markets as well. Experiential is in daily contact with the trainers and partners regarding all aspects of the racehorses under their management. Experiential also has retained a world-renowned resident veterinarian to actively review the horses in their stable for health and performance. In addition, they have access to several premium data sources that allows their horse racing experts to review speed figures, race results, pedigrees, and conditions to maximize performance of their bloodstock.
We have completed many offerings of Interests as set forth in the table below under “Operating Results” and continue to launch subsequent offerings for other series on an ongoing basis. The information contained in this “Management’s Discussion and Analysis of Financial Condition and Results of Operations” is in relation to the Company as a whole, which is made up of a number of separate series and Underlying Assets. The purchase of membership interests in a Series of the Company is an investment only in such Series and not an investment in the Company as a whole or any other Series.
As of June 30, 2022, officers of the Manager have loaned the Company a total of $2,346,020 (excluding accrued interest) in connection with the acquisition of these Underlying Assets. See Note 4 to Unaudited Financial Statements as of June 30, 2022 – Advances from Manager and Note 7 - Related Party Transactions of the Notes to the Financial Statements for more information regarding the loans/advances from officers of the Manager or the Manager.
There is limited historical financial information about us upon which to base an evaluation of our performance. We are an emerging growth business with limited operating history, and we are considered to be a development stage company, since we are devoting substantially all of our efforts to establishing our business, and our planned principal operations have only recently commenced. We cannot guarantee that we will be successful in our business operations. Our business is subject to risks inherent in the establishment of a new business enterprise, including limited capital resources and possible cost overruns, such as increases in marketing costs, increases in administration expenditures associated with daily operations, increases in accounting and audit fees, and increases in legal fees related to filings and regulatory compliance.
1 |
Operating Results
As of June 30, 2022, the following Series and related race horses have been created and either have or are currently being offered pursuant to either (i) Rule 506(c) of Regulation D, (ii) a California intrastate permit or (iii) the Offering Statement:
Name of Series | Interests Offered (1) | Interests Sold (1) | Interests Remaining (1) | Asset Cost/Interest (2) | Operating Expense Reserve/Interest (2) | Due Diligence Fee/Interest (2) | Owed to Series (3) | Owed to Experiential (4) | Paid to Experiential (5) | Price Per Interest (6) | $ Sold (7) | $ Offered (7) | $ Remaining (7) | |||||||||||||||||||||||||||||
Series Action Bundle | 10,000 | 10,000 | – | $ | 4.50 | $ | 21.85 | $ | 4.65 | – | – | 46,500.00 | 31.00 | 310,000.00 | 310,000.00 | – | ||||||||||||||||||||||||||
Series Adjust 20 | 10 | 10 | $ | 9,646.90 | $ | 1,923.70 | $ | 1,929.40 | – | – | 19,294.00 | 13,500.00 | 135,000.00 | 135,000.00 | – | |||||||||||||||||||||||||||
Series Amandrea | 550 | 550 | – | 210.00 | 40.00 | 45.00 | – | – | 24,750.00 | 295.00 | 162,250.00 | 162,250.00 | – | |||||||||||||||||||||||||||||
Series Ambleside Park 19 | 410 | 410 | – | 115.00 | 59.25 | 30.75 | – | – | 12,607.50 | 205.00 | 84,050.00 | 84,050.00 | – | |||||||||||||||||||||||||||||
Series Amers | 75 | 75 | – | 82.00 | 37.00 | 21.00 | – | – | 1,575.00 | 140.00 | 10,500.00 | 10,500.00 | – | |||||||||||||||||||||||||||||
Series Apple Down Under 19 | 600 | 600 | – | 100.00 | 47.05 | 25.95 | – | – | 15,570.00 | 173.00 | 103,800.00 | 103,800.00 | – | |||||||||||||||||||||||||||||
Series Ari the Adventurer 19 | 5,100 | 5,100 | – | 57.50 | 14.75 | 12.75 | – | – | 65,025.00 | 85.00 | 433,500.00 | 433,500.00 | – | |||||||||||||||||||||||||||||
Series Athenian Beauty 19 | 1,800 | 1,800 | – | 25.00 | 14.95 | 7.05 | – | – | 12,690.00 | 47.00 | 84,600.00 | 84,600.00 | – | |||||||||||||||||||||||||||||
Series Authentic | 12,500 | 12,500 | – | 151.54 | 23.56 | 30.90 | – | – | 386,250.00 | 206.00 | 2,575,000.00 | 2,575,000.00 | – | |||||||||||||||||||||||||||||
Series Awe Hush 19 | 1,800 | 1,800 | – | 110.00 | 29.40 | 24.60 | – | – | 44,280.00 | 164.00 | 295,200.00 | 295,200.00 | – | |||||||||||||||||||||||||||||
Series Balletic | 10,000 | 9,998 | 2 | 45.00 | 23.00 | 12.00 | 46.00 | 90.00 | 119,976.00 | 80.00 | 799,840.00 | 800,000.00 | 160.00 | |||||||||||||||||||||||||||||
Series Bella Chica | 100 | 100 | – | 250.00 | 73.00 | 57.00 | – | – | 5,700.00 | 380.00 | 38,000.00 | 38,000.00 | – | |||||||||||||||||||||||||||||
Series Big Mel | 6,000 | 6,000 | – | 89.00 | 14.00 | 18.00 | – | – | 108,000.00 | 121.00 | 726,000.00 | 726,000.00 | – | |||||||||||||||||||||||||||||
Series Black Escort 19 | 20 | 20 | – | 2,750.00 | 1,660.00 | 590.00 | – | – | 11,800.00 | 5,000.00 | 100,000.00 | 100,000.00 | – | |||||||||||||||||||||||||||||
Series Bullion | 25 | 25 | – | 240.00 | – | 230.00 | – | – | 5,750.00 | 470.00 | 11,750.00 | 11,750.00 | – | |||||||||||||||||||||||||||||
Series Cairo Kiss | 80 | 80 | – | 347.50 | 124.25 | 83.25 | – | – | 6,660.00 | 555.00 | 44,400.00 | 44,400.00 | – | |||||||||||||||||||||||||||||
Series Captain Sparrow | 10 | 10 | – | 7,717.50 | 1,939.00 | 1,543.50 | – | – | 15,435.00 | 11,200.00 | 112,000.00 | 112,000.00 | – | |||||||||||||||||||||||||||||
Series Carrothers | 5,100 | 5,100 | – | 60.20 | 25.65 | 15.15 | – | – | 77,265.00 | 101.00 | 515,100.00 | 515,100.00 | – | |||||||||||||||||||||||||||||
Series Cayala 19 | 4,100 | 4,100 | – | 60.00 | 17.35 | 13.65 | – | – | 55,965.00 | 91.00 | 373,100.00 | 373,100.00 | – | |||||||||||||||||||||||||||||
Series Chad Brown Bundle | 5,000 | 5,000 | – | 120.69 | 78.21 | 35.10 | – | – | 175,500.00 | 234.00 | 1,170,000.00 | 1,170,000.00 | – | |||||||||||||||||||||||||||||
Series Classic Cut | 10,000 | 10,000 | – | 24.00 | 19.35 | 7.65 | – | – | 76,500.00 | 51.00 | 510,000.00 | 510,000.00 | – | |||||||||||||||||||||||||||||
Series Classofsixtythree 19 | 1,000 | 1,000 | – | 125.00 | 39.05 | 28.95 | – | – | 28,950.00 | 193.00 | 193,000.00 | 193,000.00 | – | |||||||||||||||||||||||||||||
Series Co Cola 19 | 5,100 | 5,100 | – | 62.50 | 27.60 | 15.90 | – | – | 81,090.00 | 106.00 | 540,600.00 | 540,600.00 | – | |||||||||||||||||||||||||||||
Series Collusion Illusion | 25,000 | 25,000 | – | 22.00 | 3.50 | 4.50 | – | – | 112,500.00 | 30.00 | 750,000.00 | 750,000.00 | – | |||||||||||||||||||||||||||||
Series Consecrate 19 | 410 | 410 | – | 80.00 | 53.45 | 23.55 | – | – | 9,655.50 | 157.00 | 64,370.00 | 64,370.00 | – | |||||||||||||||||||||||||||||
Series Courtisane 19 | 10,000 | 10,000 | – | 23.00 | 18.65 | 7.35 | – | – | 73,500.00 | 49.00 | 490,000.00 | 490,000.00 | – | |||||||||||||||||||||||||||||
Series Cuvier | 1,250 | – | 1,250 | 58.80 | 69.20 | 32.00 | 86,500.00 | 73,500.00 | – | 160.00 | – | 200,000.00 | 200,000.00 | |||||||||||||||||||||||||||||
Series Daddys Joy | 600 | 600 | – | 80.00 | 73.00 | 27.00 | – | – | 16,200.00 | 180.00 | 108,000.00 | 108,000.00 | – | |||||||||||||||||||||||||||||
Series Dancing Crane | 20 | 20 | – | 4,250.00 | 926.00 | 924.00 | – | – | 18,480.00 | 6,100.00 | 122,000.00 | 122,000.00 | – | |||||||||||||||||||||||||||||
Series Daring Dancer 20 | 750 | 750 | – | 60.00 | 54.75 | 20.25 | – | – | 15,187.50 | 135.00 | 101,250.00 | 101,250.00 | – | |||||||||||||||||||||||||||||
Series De Mystique 17 | 250 | 250 | – | 71.50 | 47.50 | 21.00 | – | – | 5,250.00 | 140.00 | 35,000.00 | 35,000.00 | – | |||||||||||||||||||||||||||||
Series Deep Cover | 800 | 800 | – | 100.00 | 87.00 | 33.00 | – | – | 26,400.00 | 220.00 | 176,000.00 | 176,000.00 | – | |||||||||||||||||||||||||||||
Series Demogorgon | 20 | 20 | – | 4,500.00 | 917.00 | 983.00 | – | – | 19,660.00 | 6,400.00 | 128,000.00 | 128,000.00 | – | |||||||||||||||||||||||||||||
Series Desire Street 19 | 1,020 | 1,020 | – | 80.00 | 90.85 | 30.15 | – | – | 30,753.00 | 201.00 | 205,020.00 | 205,020.00 | – | |||||||||||||||||||||||||||||
Series Echo Warrior 19 | 6,000 | 6,000 | – | 27.00 | 22.30 | 8.70 | – | – | 52,200.00 | 58.00 | 348,000.00 | 348,000.00 | – | |||||||||||||||||||||||||||||
Series Edge Racing Summer Fun-d | 50 | 14 | 36 | 3,400.00 | 1,100.00 | 500.00 | 39,600.00 | 122,400.00 | 7,000.00 | 5,000.00 | 70,000.00 | 250,000.00 | 180,000.00 | |||||||||||||||||||||||||||||
Series Escape Route | 10 | 10 | – | 4,240.00 | 733.00 | 1,039.20 | – | – | 10,392.00 | 6,012.20 | 60,122.00 | 60,122.00 | – | |||||||||||||||||||||||||||||
Series Essential Rose 20 | 10,000 | 10,000 | – | 62.50 | 26.75 | 15.75 | – | – | 157,500.00 | 105.00 | 1,050,000.00 | 1,050,000.00 | – |
2 |
Series Exonerated 19 | 820 | 820 | – | 105.00 | 38.65 | 25.35 | – | – | 20,787.00 | 169.00 | 138,580.00 | 138,580.00 | – | |||||||||||||||||||||||||||||
Series Fenwick Hall 20 | 1,200 | 1,200 | – | 78.75 | 82.85 | 40.40 | – | – | 48,480.00 | 202.00 | 242,400.00 | 242,400.00 | – | |||||||||||||||||||||||||||||
Series Flora Dora 20 | 10 | 10 | 6,890.60 | 1,731.30 | 1,378.10 | – | – | 13,781.00 | 10,000.00 | 100,000.00 | 100,000.00 | – | ||||||||||||||||||||||||||||||
Series Forever Rose | 1,250 | – | 1,250 | 99.24 | 50.36 | 37.40 | 62,950.00 | 124,050.00 | – | 187.00 | – | 233,750.00 | 233,750.00 | |||||||||||||||||||||||||||||
Series Frosted Oats | 4,100 | 4,100 | – | 25.00 | 10.70 | 6.30 | – | – | 25,830.00 | 42.00 | 172,200.00 | 172,200.00 | – | |||||||||||||||||||||||||||||
Series Future Stars Stable | 10,000 | 10,000 | – | 33.55 | 8.95 | 7.50 | – | – | 75,000.00 | 50.00 | 500,000.00 | 500,000.00 | – | |||||||||||||||||||||||||||||
Series Gentleman Gerry | 20 | 19 | 1 | 5,000.00 | 1,750.00 | 1,000.00 | 1,750.00 | 5,000.00 | 19,000.00 | 7,750.00 | 147,250.00 | 155,000.00 | 7,750.00 | |||||||||||||||||||||||||||||
Series Going to Vegas | 5,100 | 5,100 | – | 50.00 | 23.10 | 12.90 | – | – | 65,790.00 | 86.00 | 438,600.00 | 438,600.00 | – | |||||||||||||||||||||||||||||
Series Got Stormy | 5,100 | 5,100 | – | 24.51 | 13.74 | 6.75 | – | – | 34,425.00 | 45.00 | 229,500.00 | 229,500.00 | – | |||||||||||||||||||||||||||||
Series Grand Traverse Bay 19 | 750 | 750 | – | 200.00 | 179.95 | 67.05 | – | – | 50,287.50 | 447.00 | 335,250.00 | 335,250.00 | – | |||||||||||||||||||||||||||||
Series Grand Traverse Bay 20 | 750 | 751 | (1 | ) | 50.00 | 52.85 | 18.15 | (52.85 | ) | (50.00 | ) | 13,630.65 | 121.00 | 90,871.00 | 90,750.00 | (121.00 | ) | |||||||||||||||||||||||||
Series Helicopter Money | 3,000 | – | 3,000 | 13.13 | 40.47 | 13.40 | 121,410.00 | 39,390.00 | – | 67.00 | – | 201,000.00 | 201,000.00 | |||||||||||||||||||||||||||||
Series Im a Looker 20 | 4,000 | – | 4,000 | 72.03 | 43.97 | 29.00 | 175,880.00 | 288,120.00 | – | 145.00 | – | 580,000.00 | 580,000.00 | |||||||||||||||||||||||||||||
Series Into Summer 19 | 650 | 650 | – | 140.00 | 188.10 | 57.90 | – | – | 37,635.00 | 386.00 | 250,900.00 | 250,900.00 | – | |||||||||||||||||||||||||||||
Series Just Louise 19 | 1,020 | 1,020 | – | 150.00 | 44.65 | 34.35 | – | – | 35,037.00 | 229.00 | 233,580.00 | 233,580.00 | – | |||||||||||||||||||||||||||||
Series Keertana 18 | 5,100 | 5,100 | – | 72.00 | 13.00 | 15.00 | – | – | 76,500.00 | 100.00 | 510,000.00 | 510,000.00 | – | |||||||||||||||||||||||||||||
Series Kianas Love | 200 | 200 | – | 55.00 | 47.00 | 18.00 | – | – | 3,600.00 | 120.00 | 24,000.00 | 24,000.00 | – | |||||||||||||||||||||||||||||
Series Kichiro | 200 | 200 | – | 77.50 | 33.00 | 19.50 | – | – | 3,900.00 | 130.00 | 26,000.00 | 26,000.00 | – | |||||||||||||||||||||||||||||
Series Lane Way | 6,000 | 6,000 | – | 61.00 | 15.50 | 13.50 | – | – | 81,000.00 | 90.00 | 540,000.00 | 540,000.00 | – | |||||||||||||||||||||||||||||
Series Latte Da 19 | 4,100 | 4,100 | – | 19.50 | 10.25 | 5.25 | – | – | 21,525.00 | 35.00 | 143,500.00 | 143,500.00 | – | |||||||||||||||||||||||||||||
Series Lazy Daisy | 1,250 | 1,250 | – | 90.00 | 7.00 | 18.00 | – | – | 22,500.00 | 115.00 | 143,750.00 | 143,750.00 | – | |||||||||||||||||||||||||||||
Series Le Relais 20 | 3,000 | 2,331 | 669 | 92.20 | 39.80 | 33.00 | 26,626.20 | 61,681.80 | 76,923.00 | 165.00 | 384,615.00 | 495,000.00 | 110,385.00 | |||||||||||||||||||||||||||||
Series Lost Empire 19 | 10,200 | 10,200 | – | 22.50 | 7.25 | 5.25 | – | – | 53,550.00 | 35.00 | 357,000.00 | 357,000.00 | – | |||||||||||||||||||||||||||||
Series Madarnas | 50 | 50 | – | 204.00 | 93.00 | 53.00 | – | – | 2,650.00 | 350.00 | 17,500.00 | 17,500.00 | – | |||||||||||||||||||||||||||||
Series Madeira Wine | 20 | 20 | – | 1,872.50 | 253.00 | 374.50 | – | – | 7,490.00 | 2,500.00 | 50,000.00 | 50,000.00 | – | |||||||||||||||||||||||||||||
Series Major Implications | 20 | 20 | – | 128.00 | 67.00 | 35.00 | – | – | 700.00 | 230.00 | 4,600.00 | 4,600.00 | – | |||||||||||||||||||||||||||||
Series Man Among Men | 820 | 820 | – | 180.00 | 52.05 | 40.95 | – | – | 33,579.00 | 273.00 | 223,860.00 | 223,860.00 | – | |||||||||||||||||||||||||||||
Series Margaret Reay 19 | 820 | 820 | – | 200.00 | 55.85 | 45.15 | – | – | 37,023.00 | 301.00 | 246,820.00 | 246,820.00 | – | |||||||||||||||||||||||||||||
Series Margarita Friday 19 | 2,000 | 1,994 | 6 | 55.00 | 86.10 | 24.90 | 516.60 | 330.00 | 49,650.60 | 166.00 | 331,004.00 | 332,000.00 | 996.00 | |||||||||||||||||||||||||||||
Series Martita Sangrita 17 | 600 | 600 | – | 200.00 | 72.00 | 48.00 | – | – | 28,800.00 | 320.00 | 192,000.00 | 192,000.00 | – | |||||||||||||||||||||||||||||
Series Mayan Milagra 19 | 20 | 20 | – | 5,500.00 | 1,846.00 | 1,154.00 | – | – | 23,080.00 | 8,500.00 | 170,000.00 | 170,000.00 | – | |||||||||||||||||||||||||||||
Series Midnight Sweetie 19 | 820 | 820 | – | 90.00 | 35.80 | 22.20 | – | – | 18,204.00 | 148.00 | 121,360.00 | 121,360.00 | – | |||||||||||||||||||||||||||||
Series Miss Puzzle | 125 | 125 | – | 109.84 | 102.66 | 37.50 | – | – | 4,687.50 | 250.00 | 31,250.00 | 31,250.00 | – | |||||||||||||||||||||||||||||
Series Miss Sakamoto | 6,000 | 6,001 | (1 | ) | 25.00 | 20.90 | 8.10 | (20.90 | ) | (25.00 | ) | 48,608.10 | 54.00 | 324,054.00 | 324,000.00 | (54.00 | ) | |||||||||||||||||||||||||
Series Mo Mischief | 5,100 | 5,100 | – | 50.00 | 14.00 | 11.00 | – | – | 56,100.00 | 75.00 | 382,500.00 | 382,500.00 | – | |||||||||||||||||||||||||||||
Series Mo Temptation | 3,500 | – | 3,500 | 34.58 | 35.02 | 17.40 | 122,570.00 | 121,030.00 | – | 87.00 | – | 304,500.00 | 304,500.00 | |||||||||||||||||||||||||||||
Series Monomoy Girl | 10,200 | 10,200 | – | 29.41 | 9.69 | 6.90 | – | – | 70,380.00 | 46.00 | 469,200.00 | 469,200.00 | – | |||||||||||||||||||||||||||||
Series Moonbow 20 | 2,500 | – | 2,500 | 21.69 | 47.11 | 17.20 | 117,775.00 | 54,225.00 | – | 86.00 | – | 215,000.00 | 215,000.00 | |||||||||||||||||||||||||||||
Series Moonless Sky | 200 | 200 | – | 60.00 | 33.50 | 16.50 | – | – | 3,300.00 | 110.00 | 22,000.00 | 22,000.00 | – | |||||||||||||||||||||||||||||
Series Motion Emotion | 1,020 | 1,020 | – | 24.51 | 46.89 | 12.60 | – | – | 12,852.00 | 84.00 | 85,680.00 | 85,680.00 | – | |||||||||||||||||||||||||||||
Series Mrs Whistler | 2,000 | 2,002 | (2 | ) | 40.00 | 76.45 | 20.55 | (152.90 | ) | (80.00 | ) | 41,141.10 | 137.00 | 274,274.00 | 274,000.00 | (274.00 | ) | |||||||||||||||||||||||||
Series My Fast One 20 | 2,000 | – | 2,000 | 55.50 | 76.50 | 33.00 | 153,000.00 | 111,000.00 | – | 165.00 | – | 330,000.00 | 330,000.00 | |||||||||||||||||||||||||||||
Series Naismith | 2,000 | 2,000 | – | 75.00 | 54.20 | 22.80 | – | – | 45,600.00 | 152.00 | 304,000.00 | 304,000.00 | – | |||||||||||||||||||||||||||||
Series National Road | 20 | 20 | 5,000.00 | 1,000.00 | 1,000.00 | – | – | 20,000.00 | 7,000.00 | 140,000.00 | 140,000.00 | – | ||||||||||||||||||||||||||||||
Series New York Claiming Package | 510 | 510 | – | 72.00 | 54.00 | 14.00 | – | – | 7,140.00 | 140.00 | 71,400.00 | 71,400.00 | – | |||||||||||||||||||||||||||||
Series Night of Idiots | 80 | 80 | – | 112.00 | 100.00 | 38.00 | – | – | 3,040.00 | 250.00 | 20,000.00 | 20,000.00 | – |
3 |
Series Nileist | 45 | 45 | – | 260.00 | 190.00 | 80.00 | – | – | 3,600.00 | 530.00 | 23,850.00 | 23,850.00 | – | |||||||||||||||||||||||||||||
Series Noble Goddess | 300 | 300 | – | 62.00 | 31.00 | 17.00 | – | – | 5,100.00 | 110.00 | 33,000.00 | 33,000.00 | – | |||||||||||||||||||||||||||||
Series Northern Smile 20 | 20 | 18 | 2 | 4,500.00 | 1,600.00 | 900.00 | 3,200.00 | 9,000.00 | 16,200.00 | 7,000.00 | 126,000.00 | 140,000.00 | 14,000.00 | |||||||||||||||||||||||||||||
Series NY Exacta | 2,000 | 2,000 | – | 107.50 | 86.30 | 34.20 | – | – | 68,400.00 | 228.00 | 456,000.00 | 456,000.00 | – | |||||||||||||||||||||||||||||
Series Our Miss Jones 19 | 1,200 | 1,200 | – | 50.00 | 82.60 | 23.40 | – | – | 28,080.00 | 156.00 | 187,200.00 | 187,200.00 | – | |||||||||||||||||||||||||||||
Series Palace Foal | 510 | – | 510 | 31.00 | 71.00 | 18.00 | 36,210.00 | 15,810.00 | – | 120.00 | – | 61,200.00 | 61,200.00 | |||||||||||||||||||||||||||||
Series Popular Demand | 1,020 | 1,020 | – | 145.00 | 63.00 | 36.00 | – | – | 36,720.00 | 244.00 | 248,880.00 | 248,880.00 | – | |||||||||||||||||||||||||||||
Series Power Up Paynter | 600 | 600 | – | 100.00 | 61.00 | 29.00 | – | – | 17,400.00 | 190.00 | 114,000.00 | 114,000.00 | – | |||||||||||||||||||||||||||||
Series Queen Amira 19 | 2,000 | 2,000 | – | 60.00 | 80.25 | 24.75 | – | – | 49,500.00 | 165.00 | 330,000.00 | 330,000.00 | – | |||||||||||||||||||||||||||||
Series Race Hunter 19 | 10,000 | 10,000 | – | 25.00 | 19.20 | 7.80 | – | – | 78,000.00 | 52.00 | 520,000.00 | 520,000.00 | – | |||||||||||||||||||||||||||||
Series Salute to America | 1,000 | 1,000 | – | 80.00 | 152.05 | 40.95 | – | – | 40,950.00 | 273.00 | 273,000.00 | 273,000.00 | – | |||||||||||||||||||||||||||||
Series Sauce On the Side | 125 | 125 | – | 130.00 | 74.00 | 36.00 | – | – | 4,500.00 | 240.00 | 30,000.00 | 30,000.00 | – | |||||||||||||||||||||||||||||
Series Shake It Up Baby | 250 | 250 | – | 44.00 | 66.50 | 19.50 | – | – | 4,875.00 | 130.00 | 32,500.00 | 32,500.00 | – | |||||||||||||||||||||||||||||
Series Sigesmund | 200 | 200 | – | 50.00 | 35.00 | 15.00 | – | – | 3,000.00 | 100.00 | 20,000.00 | 20,000.00 | – | |||||||||||||||||||||||||||||
Series Silverpocketsfull 19 | 5,100 | 5,100 | – | 55.00 | 20.65 | 13.35 | – | – | 68,085.00 | 89.00 | 453,900.00 | 453,900.00 | – | |||||||||||||||||||||||||||||
Series Social Dilemma | 510 | 510 | – | 49.02 | 92.93 | 25.05 | – | – | 12,775.50 | 167.00 | 85,170.00 | 85,170.00 | – | |||||||||||||||||||||||||||||
Series Song of Bernadette 20 | 5,100 | 5,100 | – | 55.00 | 27.45 | 14.55 | – | – | 74,205.00 | 97.00 | 494,700.00 | 494,700.00 | – | |||||||||||||||||||||||||||||
Series Soul Beam | 65 | 65 | – | 355.00 | 163.50 | 91.50 | – | – | 5,947.50 | 610.00 | 39,650.00 | 39,650.00 | – | |||||||||||||||||||||||||||||
Series Speightstown Belle 19 | 900 | 900 | – | 85.00 | 33.15 | 20.85 | – | – | 18,765.00 | 139.00 | 125,100.00 | 125,100.00 | – | |||||||||||||||||||||||||||||
Series Spirit 20 | 3,000 | 3,000 | – | 33.60 | 33.60 | 16.80 | – | – | 50,400.00 | 84.00 | 252,000.00 | 252,000.00 | – | |||||||||||||||||||||||||||||
Series Squared Straight | 150 | 150 | – | 150.00 | 79.50 | 40.50 | – | – | 6,075.00 | 270.00 | 40,500.00 | 40,500.00 | – | |||||||||||||||||||||||||||||
Series Stay Fabulous | 2,500 | – | 2,500 | 49.95 | 49.25 | 24.80 | 123,125.00 | 124,875.00 | – | 124.00 | – | 310,000.00 | 310,000.00 | |||||||||||||||||||||||||||||
Series Storm Shooter | 2,000 | 2,000 | – | 90.00 | 48.00 | 24.00 | – | – | 48,000.00 | 162.00 | 324,000.00 | 324,000.00 | – | |||||||||||||||||||||||||||||
Series Street Band | 50 | 50 | – | 918.00 | 127.00 | 185.00 | – | – | 9,250.00 | 1,230.00 | 61,500.00 | 61,500.00 | – | |||||||||||||||||||||||||||||
Series Sunny 18 | 6,000 | 6,000 | – | 40.30 | 14.69 | 10.01 | – | – | 60,060.00 | 65.00 | 390,000.00 | 390,000.00 | – | |||||||||||||||||||||||||||||
Series Sunsanddrinkinhand | 20 | 20 | – | 3,500.00 | 781.10 | 718.90 | – | – | 14,378.00 | 5,000.00 | 100,000.00 | 100,000.00 | – | |||||||||||||||||||||||||||||
Series Sweet Sweet Annie 19 | 20 | 20 | – | 4,750.00 | 1,739.00 | 1,011.00 | – | – | 20,220.00 | 7,500.00 | 150,000.00 | 150,000.00 | – | |||||||||||||||||||||||||||||
Series Swiss Minister | 50 | 50 | – | 150.00 | 88.00 | 42.00 | – | – | 2,100.00 | 280.00 | 14,000.00 | 14,000.00 | – | |||||||||||||||||||||||||||||
Series Takeo Squared | 100 | 100 | – | 153.00 | 76.00 | 41.00 | – | – | 4,100.00 | 270.00 | 27,000.00 | 27,000.00 | – | |||||||||||||||||||||||||||||
Series Tapitry 19 | 820 | 820 | – | 180.00 | 52.05 | 40.95 | – | – | 33,579.00 | 273.00 | 223,860.00 | 223,860.00 | – | |||||||||||||||||||||||||||||
Series Tavasco Road | 80 | 80 | – | 128.00 | 67.00 | 35.00 | – | – | 2,800.00 | 230.00 | 18,400.00 | 18,400.00 | – | |||||||||||||||||||||||||||||
Series Tell All 19 | 12 | 12 | – | 7,000.00 | 1,987.00 | 1,513.00 | – | – | 18,156.00 | 10,500.00 | 126,000.00 | 126,000.00 | – | |||||||||||||||||||||||||||||
Series Tell the Duchess 19 | 2,000 | 2,000 | – | 42.50 | 78.20 | 21.30 | – | – | 42,600.00 | 142.00 | 284,000.00 | 284,000.00 | – | |||||||||||||||||||||||||||||
Series The Filly Four | 8,000 | 8,000 | – | 105.00 | 48.00 | 27.00 | – | – | 216,000.00 | 180.00 | 1,440,000.00 | 1,440,000.00 | – | |||||||||||||||||||||||||||||
Series Thirteen Stripes | 1,000 | 1,000 | – | 100.00 | 94.65 | 34.35 | – | – | 34,350.00 | 229.00 | 229,000.00 | 229,000.00 | – | |||||||||||||||||||||||||||||
Series Timeless Trick 20 | 12 | 8 | 4 | 5,000.00 | 1,750.00 | 1,000.00 | 7,000.00 | 20,000.00 | 8,000.00 | 7,750.00 | 62,000.00 | 93,000.00 | 31,000.00 | |||||||||||||||||||||||||||||
Series Tizamagician | 600 | 600 | – | 185.00 | 87.00 | 48.00 | – | – | 28,800.00 | 320.00 | 192,000.00 | 192,000.00 | – | |||||||||||||||||||||||||||||
Series Tufnel | 5,200 | 5,159 | 41 | 30.00 | 22.70 | 9.30 | 930.70 | 1,230.00 | 47,978.70 | 62.00 | 319,858.00 | 322,400.00 | 2,542.00 | |||||||||||||||||||||||||||||
Series Two Trail Sioux 17 | 450 | 450 | – | 165.00 | 90.00 | 45.00 | – | – | 20,250.00 | 300.00 | 135,000.00 | 135,000.00 | – | |||||||||||||||||||||||||||||
Series Two Trail Sioux 17K | 1 | 1 | – | 24,750.00 | 4,970.00 | – | – | – | – | 29,720.00 | 29,720.00 | 29,720.00 | – | |||||||||||||||||||||||||||||
Series Utalknboutpractice | 100 | 100 | – | 165.00 | 90.00 | 45.00 | – | – | 4,500.00 | 300.00 | 30,000.00 | 30,000.00 | – | |||||||||||||||||||||||||||||
Series Vertical Threat | 600 | 600 | – | 100.00 | 78.50 | 31.50 | – | – | 18,900.00 | 210.00 | 126,000.00 | 126,000.00 | – | |||||||||||||||||||||||||||||
Series Vow | 2,000 | 2,000 | – | 70.00 | 82.15 | 26.85 | – | – | 53,700.00 | 179.00 | 358,000.00 | 358,000.00 | – | |||||||||||||||||||||||||||||
Series War Safe | 2,000 | 2,000 | – | 45.00 | 79.10 | 21.90 | – | – | 43,800.00 | 146.00 | 292,000.00 | 292,000.00 | – | |||||||||||||||||||||||||||||
Series Wayne O | 6,000 | 6,000 | – | 75.00 | 6.00 | 14.00 | – | – | 84,000.00 | 95.00 | 570,000.00 | 570,000.00 | – | |||||||||||||||||||||||||||||
Series Who Runs the World | 5,100 | 5,086 | 14 | 60.00 | 28.40 | 15.60 | 397.60 | 840.00 | 79,341.60 | 104.00 | 528,944.00 | 530,400.00 | 1,456.00 | |||||||||||||||||||||||||||||
Series Whosbeeninmybed 19 | 5,100 | 5,100 | – | 45.00 | 17.90 | 11.10 | – | – | 56,610.00 | 74.00 | 377,400.00 | 377,400.00 | – | |||||||||||||||||||||||||||||
Series Without Delay 19 | 20 | 20 | – | 4,500.00 | 1,550.00 | 950.00 | – | – | 19,000.00 | 7,000.00 | 140,000.00 | 140,000.00 | – |
4 |
Series Wonder Upon a Star 19 | 10,000 | 10,000 | – | 14.00 | 17.45 | 5.55 | – | – | 55,500.00 | 37.00 | 370,000.00 | 370,000.00 | – | |||||||||||||||||||||||||||||
Series Yes This Time | 10 | 10 | – | 10,000.00 | 793.00 | 2,159.00 | – | – | 21,590.00 | 12,952.00 | 129,520.00 | 129,520.00 | – | |||||||||||||||||||||||||||||
Series You Make Luvin Fun 19 | 6,000 | 3,810 | 2,190 | 40.00 | 23.75 | 11.25 | 52,012.50 | 87,600.00 | 42,862.50 | 75.00 | 285,750.00 | 450,000.00 | 164,250.00 | |||||||||||||||||||||||||||||
Series Zestful | 100 | 100 | – | 194.00 | 78.00 | 48.00 | – | – | 4,800.00 | 320.00 | 32,000.00 | 32,000.00 | – |
(1) | Denotes total membership interests offered, sold to date and remaining to be sold in each series. |
(2) | Denotes the “Cash Portion of the Asset Cost”, “Cash Reserves for Operating Expenses”, and “Due Diligence Fee” per membership interest sold. |
(3) | Denotes the amount of cash held in reserve attributable to such series after deduction of “Due Diligence Fee.” |
(4) | Denotes the amount owed the Manager for any loans extended on behalf of a series. |
(5) | Denotes the amount of “Due Diligence Fee” or other “Management Fee” paid to Manager. |
(6) | Price per membership interest of each series. |
(7) | Denotes total dollar amount offered, sold to date and remaining to be sold in each series. |
Revenues
Revenues are generated at the Series level. During the six-month periods ended June 30, 2022, and June 30, 2021, the Company generated $1,421,369 and $982,124 in revenues, respectively. The increase in revenue is attributed to certain Series’ Underlying Asset winning horse race purse winnings. Some of the Company’s horses (as more particularly described in the Offering Statement under the “Use of Proceeds” section for each Underlying Asset) have begun racing, and thus, may begin to generate revenue.
During the six-month periods ended June 30, 2022, and June 30, 2021, the Company incurred costs of revenue – horse expenses of $2,224,144 and $1,989,393, respectively. The increase in costs of revenue of $234,751 – horse expenses is attributed to the Company’s sizable increase of investment in new, additional Underlying Assets that are related to veterinary costs, transportation, jockey fees, etc. as directly related to the revenue-driving activities of such series of horses.
5 |
The revenues generated, and costs of revenue incurred, on a series-by-series basis as of June 30, 2022, and June 30, 2021 are as follows:
Revenues | Cost of Revenues | |||||||||||||||||
Series Name | Underlying Asset | 30-Jun-22 | 30-Jun-21 | 30-Jun-22 | 30-Jun-21 | |||||||||||||
Series Action Bundle | Action Bundle | $ | – | $ | 108,820 | $ | – | $ | (155,367 | ) | ||||||||
Series Adjust 20 | Jai Ho | – | – | (4,897 | ) | – | ||||||||||||
Series Amandrea | Amandrea | – | 4,695 | – | (13,688 | ) | ||||||||||||
Series Ambleside Park 19 | Lookwhogotlucky | 3,762 | – | (11,227 | ) | (8,539 | ) | |||||||||||
Series Apple Down Under 19 | Howboutdemapples | – | – | – | (13,596 | ) | ||||||||||||
Series Ari the Adventurer 19 | Kanthari | – | – | (19,269 | ) | (18,662 | ) | |||||||||||
Series Athenian Beauty 19 | Quantum Theory | 7,740 | – | (10,683 | ) | (14,576 | ) | |||||||||||
Series Authentic | Authentic | – | – | (103,302 | ) | (187,514 | ) | |||||||||||
Series Awe Hush 19 | Can't Hush This | 10,151 | – | (29,982 | ) | (22,000 | ) | |||||||||||
Series Balletic | Balletic | – | – | (33,416 | ) | – | ||||||||||||
Series Bella Chica | Bella Chica | – | 784 | – | (6,049 | ) | ||||||||||||
Series Big Mel | Big Mel | – | – | – | (14,491 | ) | ||||||||||||
Series Black Escort 19 | Halofied | 192 | – | (21,994 | ) | (9,838 | ) | |||||||||||
Series Captain Sparrow | Captain Sparrow | – | – | (4,320 | ) | – | ||||||||||||
Series Carrothers | Carrothers | 2,628 | – | (19,822 | ) | (31,289 | ) | |||||||||||
Series Cayala 19 | Provocateur | 57,146 | – | (35,431 | ) | (12,838 | ) | |||||||||||
Series Chad Brown Bundle | Chad Brown Bundle | – | – | (70,119 | ) | – | ||||||||||||
Series Classic Cut | Classic Cut | – | – | (24,263 | ) | – | ||||||||||||
Series Classofsixtythree 19 | Sixtythreecaliber | 21,000 | – | (20,991 | ) | (13,798 | ) | |||||||||||
Series Co Cola 19 | Search Engine | 28,050 | – | (25,771 | ) | (11,839 | ) | |||||||||||
Series Collusion Illusion | Collusion Illusion | 275 | – | 4,403 | (19,247 | ) | ||||||||||||
Series Consecrate 19 | Sacred Beauty | 3,690 | – | (5,292 | ) | (11,823 | ) | |||||||||||
Series Courtisane 19 | Tap the Gavel | 43,850 | – | (43,150 | ) | (14,704 | ) | |||||||||||
Series Cuvier | Cuvier | – | – | (2,345 | ) | – | ||||||||||||
Series Daddys Joy | Daddy's Joy | 11,100 | 6,990 | (19,106 | ) | (16,514 | ) | |||||||||||
Series Dancing Crane | Dancing Crane | 49,400 | 15,636 | (38,624 | ) | (24,544 | ) | |||||||||||
Series Daring Dancer 20 | Daring Dancer 20 | – | – | (4,433 | ) | – | ||||||||||||
Series Deep Cover | Deep Cover | 57,090 | – | (40,569 | ) | (26,234 | ) | |||||||||||
Series Demogorgon | Demogorgon | 20,450 | – | (27,418 | ) | – | ||||||||||||
Series Desire Street 19 | Always Hopeful | 10,404 | – | (17,883 | ) | (5,760 | ) | |||||||||||
Series Echo Warrior 19 | Hero Status | 20,904 | – | (24,719 | ) | (12,693 | ) | |||||||||||
Series Edge Racing Summer Fun-d | Summer Fun | – | – | (2,617 | ) | – | ||||||||||||
Series Escape Route | Escape Route | 65,696 | – | (48,423 | ) | (23,018 | ) | |||||||||||
Series Essential Rose 20 | Rosie's Alibi | – | – | (37,359 | ) | – | ||||||||||||
Series Exonerated 19 | Above Suspicion | – | – | (15,340 | ) | (14,763 | ) | |||||||||||
Series Fenwick Hall 20 | Inspector | – | – | (7,886 | ) | – | ||||||||||||
Series Flora Dora 20 | Spun Intended | – | – | (6,312 | ) | – | ||||||||||||
Series Forever Rose | Forever Rose | – | – | (5,125 | ) | – |
6 |
Series Frosted Oats | Frosted Oats | 27,675 | – | (18,825 | ) | (12,533 | ) | |||||||||||
Series Future Stars Stable | Future Stars Stable | 31,573 | – | (44,648 | ) | (20,232 | ) | |||||||||||
Series Gentleman Gerry | Gentleman Gerry | – | – | (6,546 | ) | – | ||||||||||||
Series Going to Vegas | Going to Vegas | 73,950 | 37,660 | (47,045 | ) | (48,205 | ) | |||||||||||
Series Got Stormy | Got Stormy | – | 52,033 | – | (105,319 | ) | ||||||||||||
Series Grand Traverse Bay 19 | Cornice Traverse | 3,720 | – | (28,981 | ) | (8,320 | ) | |||||||||||
Series Grand Traverse Bay 20 | Grand Traverse Bay 20 | – | – | (4,764 | ) | – | ||||||||||||
Series Helicopter Money | Helicopter Money | – | – | (2,811 | ) | – | ||||||||||||
Series Im A Looker 20 | I'm a Looker 20 | – | – | (5,426 | ) | – | ||||||||||||
Series Into Summer 19 | Malibu Mayhem | 325 | – | (17,904 | ) | (6,873 | ) | |||||||||||
Series Just Louise 19 | Forbidden Kingdom | 183,855 | – | (100,326 | ) | (16,438 | ) | |||||||||||
Series Keertana 18 | American Heiress | – | 230 | (516 | ) | (20,944 | ) | |||||||||||
Series Kichiro | Kichiro | – | 1,034 | – | (2,170 | ) | ||||||||||||
Series Lane Way | Lane Way | – | 2,268 | (26,200 | ) | (18,139 | ) | |||||||||||
Series Latte Da 19 | Inalattetrouble | – | – | (7,927 | ) | (10,401 | ) | |||||||||||
Series Lazy Daisy | Lazy Daisy | – | – | – | – | |||||||||||||
Series Le Relais 20 | Show Your Cards | – | – | (14,685 | ) | – | ||||||||||||
Series Lost Empire 19 | Laforgia | 255 | – | (22,400 | ) | (17,384 | ) | |||||||||||
Series Madeira Wine | Madeira Wine | 6,510 | – | (5,585 | ) | – | ||||||||||||
Series Man Among Men | Man Among Men | – | – | (15,372 | ) | (16,080 | ) | |||||||||||
Series Margaret Reay 19 | A Mo Reay | 11,808 | – | (24,043 | ) | (14,471 | ) | |||||||||||
Series Margarita Friday 19 | Straight No Chaser | – | – | (29,208 | ) | (6,484 | ) | |||||||||||
Series Martita Sangrita 17 | Carpe Vinum | 44,544 | 5,880 | (31,565 | ) | (19,058 | ) | |||||||||||
Series Mayan Milagra 19 | Tepeu | 43,150 | – | (35,648 | ) | (6,333 | ) | |||||||||||
Series Midnight Sweetie 19 | Dolce Notte | – | – | (6,166 | ) | (11,638 | ) | |||||||||||
Series Miss Puzzle | Miss Tapit | – | – | 7 | (3,498 | ) | ||||||||||||
Series Miss Sakamoto | Miss Sakamoto | 25,338 | – | (28,063 | ) | (7,007 | ) | |||||||||||
Series Mo Mischief | Mo Mischief | – | – | – | (14,505 | ) | ||||||||||||
Series Mo Temptation | Mo Temptation | – | – | (6,981 | ) | – | ||||||||||||
Series Monomoy Girl | Monomoy Girl | – | 178,500 | – | (240,358 | ) | ||||||||||||
Series Moonbow 20 | Moonbow 20 | – | – | (2,468 | ) | – | ||||||||||||
Series Motion Emotion | Motion Emotion | – | 10,032 | – | (16,821 | ) | ||||||||||||
Series Mrs Whistler | Mrs Whistler | 860 | – | (26,091 | ) | (9,727 | ) | |||||||||||
Series My Fast One 20 | My Fast One 20 | – | – | (3,586 | ) | – | ||||||||||||
Series Naismith | Naismith | 1,840 | 10,980 | (32,104 | ) | (34,752 | ) | |||||||||||
Series National Road | National Road | 28,900 | – | (35,342 | ) | – | ||||||||||||
Series Northern Smile 20 | Pep Rally | – | – | (13,756 | ) | – | ||||||||||||
Series NY Exacta | NY Exacta | 18,944 | 27,050 | (70,306 | ) | (52,070 | ) | |||||||||||
Series Our Miss Jones 19 | Celebrity News | 13,200 | – | (31,229 | ) | (7,753 | ) | |||||||||||
Series Palace Foal | Palace Foal | – | – | – | – | |||||||||||||
Series Popular Demand | Popular Demand | – | – | – | (12,501 | ) | ||||||||||||
Series Power Up Paynter | Power Up Paynter | – | 510 | 10 | (13,790 | ) |
7 |
Series Queen Amira 19 | Regal Rebel | 375 | – | (21,551 | ) | (7,628 | ) | |||||||||||
Series Race Hunter 19 | Chasing Time | 128,250 | – | (106,213 | ) | (11,675 | ) | |||||||||||
Series Salute to America | Salute to America | 47,500 | – | (41,282 | ) | (6,820 | ) | |||||||||||
Series Sigesmund | Sigesmund | – | 20 | – | 867 | |||||||||||||
Series Silverpocketsfull 19 | Iron Works | 50,711 | – | (41,151 | ) | (9,400 | ) | |||||||||||
Series Social Dilemma | Social Dilemma | – | 27,525 | – | (32,358 | ) | ||||||||||||
Series Song of Bernadette 20 | Cable Boss | – | – | (20,360 | ) | – | ||||||||||||
Series Speightstown Belle 19 | Ancient Royalty | – | – | – | (11,028 | ) | ||||||||||||
Series Spirit 20 | Phantom Ride | – | – | (7,532 | ) | – | ||||||||||||
Series Squared Straight | Squared Straight | – | 2,048 | – | (4,036 | ) | ||||||||||||
Series Stay Fabulous | Stay Fabulous | – | – | (2,152 | ) | – | ||||||||||||
Series Storm Shooter | Storm Shooter | 15,760 | 28,640 | (21,521 | ) | (31,978 | ) | |||||||||||
Series Sunny 18 | Solar Strike | – | – | – | (17,082 | ) | ||||||||||||
Series Sunsanddrinkinhand | Sunsanddrinkinhand | 1,040 | – | (24,576 | ) | – | ||||||||||||
Series Sweet Sweet Annie 19 | In Due Time | 129,920 | – | (58,862 | ) | (11,678 | ) | |||||||||||
Series Tapitry 19 | Infinite Empire | – | – | (12,196 | ) | (14,668 | ) | |||||||||||
Series Tell All 19 | Walk the Talk | – | – | (12,822 | ) | (10,566 | ) | |||||||||||
Series Tell the Duchess 19 | Duke of Love | 42,552 | – | (44,299 | ) | (9,032 | ) | |||||||||||
Series The Filly Four | The Filly Four | 21,504 | 190,400 | (26,327 | ) | (107,631 | ) | |||||||||||
Series Thirteen Stripes | Thirteen Stripes | 5,445 | 20,225 | (26,834 | ) | (28,161 | ) | |||||||||||
Series Timeless Trick 20 | Interstellar | – | – | (7,285 | ) | – | ||||||||||||
Series Tizamagician | Tizamagician | – | 136,200 | (18,642 | ) | (68,621 | ) | |||||||||||
Series Tufnel | Tufnel | – | – | (13,131 | ) | – | ||||||||||||
Series Two Trail Sioux 17 | Annahilate | – | – | – | (4,654 | ) | ||||||||||||
Series Two Trail Sioux 17K | Two Trail Sioux 17K | – | – | – | (1,541 | ) | ||||||||||||
Series Vertical Threat | Vertical Threat | – | – | (3,555 | ) | (16,292 | ) | |||||||||||
Series Vow | Vow | – | – | (17,709 | ) | (8,320 | ) | |||||||||||
Series War Safe | War Safe | 636 | – | (40,085 | ) | (2,780 | ) | |||||||||||
Series Wayne O | Wayne O | – | 2,140 | – | (5,934 | ) | ||||||||||||
Series Who Runs the World | Who Runs the World | – | – | (18,707 | ) | – | ||||||||||||
Series Whosbeeninmybed 19 | Micro Share | 31,416 | – | (32,450 | ) | (8,417 | ) | |||||||||||
Series Without Delay 19 | Golden Quality | 3,786 | – | (20,939 | ) | (2,246 | ) | |||||||||||
Series Wonder Upon a Star 19 | Star Six Nine | – | – | (6,910 | ) | (14,621 | ) | |||||||||||
Series Yes This Time | Yes This Time | 12,500 | 111,825 | (32,582 | ) | (57,029 | ) | |||||||||||
Series You Make Luvin Fun 19 | Magical Ways | – | – | (20,285 | ) | (8,875 | ) | |||||||||||
Totals | $ | 1,421,369 | $ | 982,124 | $ | (2,224,144 | ) | $ | (1,989,393 | ) |
Operating Expenses
From its formation in December 2016 until the Company commenced its planned principal operations in 2018, the Company’s efforts were focused on the development of its business model, the offering structure and marketing for fundraising. Since commencing principal operations, the Company has been focused on the business of owning, training and racing horses. During the six-month periods ended June 30, 2022, and June 30, 2021, the Company incurred $3,817,059 and $3,687,696 in operating expenses, respectively, an increase of $129,364, related to general and administrative fees, management fees, depreciation, and loss on horse retirement. The increase was primarily driven by an increase in the amount of series offerings and increased costs from the Company’s acquisition of new Underlying Assets and gain on the retirement of certain horses.
8 |
Operating Expenses for the Company including all of the Series for the six-month periods ended June 30, 2022, and June 30, 2021, are as follows:
30-Jun-22 | 30-Jun-21 | Difference | ||||||||||
General and Administrative (1) | $ | 271,556 | $ | 198,851 | $ | 72,705 | ||||||
Management Fees | 1,056,651 | 898,703 | 157,948 | |||||||||
Depreciation | 2,614,422 | 2,365,341 | 249,081 | |||||||||
Loss on Horse Retirement | (125,570 | ) | 224,800 | (350,370 | ) | |||||||
Total: | $ | 3,817,059 | $ | 3,687,696 | $ | 129,364 |
(1) | 2022 General and Administrative expenses included interest expense incurred in each period. |
Operating Expenses - Overview
During the six-month periods ended June 30, 2022 and June 30, 2021, at the close of the respective offerings for the Series listed in the table below, each individual Series became responsible for operating expenses. All operating expenses are incurred on the books by the Series. The operating expenses for each Series are as follows:
Series Name | Underlying Asset | 30-Jun-22 | 30-Jun-21 | |||||||
Series Action Bundle | Action Bundle | $ | – | $ | 59,782 | |||||
Series Adjust 20 | Jai Ho | 22,430 | – | |||||||
Series Amandrea | Amandrea | – | 20,544 | |||||||
Series Ambleside Park 19 | Lookwhogotlucky | 10,635 | 11,058 | |||||||
Series Apple Down Under 19 | Howboutdemapples | – | 10,200 | |||||||
Series Ari the Adventurer 19 | Kanthari | 54,919 | 93,965 | |||||||
Series Athenian Beauty 19 | Quantum Theory | (3,734 | ) | 10,700 | ||||||
Series Authentic | Authentic | 540,520 | 749,914 | |||||||
Series Awe Hush 19 | Can't Hush This | 36,415 | 36,200 | |||||||
Series Balletic | Balletic | 168,618 | – | |||||||
Series Bella Chica | Bella Chica | 0 | 6,467 | |||||||
Series Big Mel | Big Mel | – | 91,168 | |||||||
Series Black Escort 19 | Halofied | 14,217 | 11,133 | |||||||
Series Captain Sparrow | Captain Sparrow | 17,944 | – | |||||||
Series Carrothers | Carrothers | 74,011 | 57,432 | |||||||
Series Cayala 19 | Provocateur | 50,315 | 45,468 | |||||||
Series Chad Brown Bundle | Chad Brown Bundle | 284,704 | – | |||||||
Series Classic Cut | Classic Cut | 45,600 | – | |||||||
Series Classofsixtythree 19 | Sixtythreecaliber | 25,333 | 24,033 | |||||||
Series Co Cola 19 | Search Engine | 62,186 | 63,536 | |||||||
Series Collusion Illusion | Collusion Illusion | 273,628 | 96,867 | |||||||
Series Consecrate 19 | Sacred Beauty | (7,752 | ) | 8,713 | ||||||
Series Courtisane 19 | Tap the Gavel | 48,235 | 67,724 | |||||||
Series Cuvier | Cuvier | 1,965 | – |
9 |
Series Daddys Joy | Daddy's Joy | 7,948 | 10,998 | |||||||
Series Dancing Crane | Dancing Crane | 16,407 | 29,021 | |||||||
Series Daring Dancer 20 | Daring Dancer 20 | 25,463 | – | |||||||
Series Deep Cover | Deep Cover | 21,911 | 16,000 | |||||||
Series Demogorgon | Demogorgon | 17,100 | – | |||||||
Series Desire Street 19 | Always Hopeful | 17,992 | 4,529 | |||||||
Series Echo Warrior 19 | Hero Status | 53,398 | 49,406 | |||||||
Series Edge Racing Summer Fun-d | Summer Fun | 8,062 | – | |||||||
Series Escape Route | Escape Route | 13,667 | 7,867 | |||||||
Series Essential Rose 20 | Rosie's Alibi | 164,383 | – | |||||||
Series Exonerated 19 | Above Suspicion | 17,550 | 12,425 | |||||||
Series Fenwick Hall 20 | Inspector | 55,893 | – | |||||||
Series Flora Dora 20 | Spun Intended | 19,606 | – | |||||||
Series Forever Rose | Forever Rose | 2,353 | – | |||||||
Series Frosted Oats | Frosted Oats | 23,486 | 29,000 | |||||||
Series Future Stars Stable | Future Stars Stable | 65,023 | 55,607 | |||||||
Series Gentleman Gerry | Gentleman Gerry | 24,481 | – | |||||||
Series Going to Vegas | Going to Vegas | 68,462 | 108,908 | |||||||
Series Got Stormy | Got Stormy | – | 43,228 | |||||||
Series Grand Traverse Bay 19 | Cornice Traverse | 29,022 | 48,467 | |||||||
Series Grand Traverse Bay 20 | Grand Traverse Bay 20 | 22,593 | – | |||||||
Series Helicopter Money | Helicopter Money | 1,110 | – | |||||||
Series Im A Looker 20 | I'm a Looker 20 | 5,947 | – | |||||||
Series Into Summer 19 | Malibu Mayhem | 19,679 | 6,930 | |||||||
Series Just Louise 19 | Forbidden Kingdom | 47,086 | 28,975 | |||||||
Series Keertana 18 | American Heiress | 12,011 | 61,598 | |||||||
Series Kichiro | Kichiro | – | 6,458 | |||||||
Series Lane Way | Lane Way | 69,244 | 69,425 | |||||||
Series Latte Da 19 | Inalattetrouble | 41,068 | 22,555 | |||||||
Series Lazy Daisy | Lazy Daisy | – | (8,711 | ) | ||||||
Series Le Relais 20 | Show Your Cards | 94,456 | – | |||||||
Series Lost Empire 19 | Laforgia | 42,676 | 43,049 | |||||||
Series Madeira Wine | Madeira Wine | 8,000 | – | |||||||
Series Man Among Men | Man Among Men | 27,800 | 27,800 | |||||||
Series Margaret Reay 19 | A Mo Reay | 30,949 | 30,533 | |||||||
Series Margarita Friday 19 | Straight No Chaser | 71,951 | 4,534 | |||||||
Series Martita Sangrita 17 | Carpe Vinum | 23,421 | 24,438 | |||||||
Series Mayan Milagra 19 | Tepeu | 20,433 | 28,852 | |||||||
Series Midnight Sweetie 19 | Dolce Notte | 14,700 | 15,500 | |||||||
Series Miss Puzzle | Miss Tapit | – | 4,528 | |||||||
Series Miss Sakamoto | Miss Sakamoto | 41,148 | 25,803 | |||||||
Series Mo Mischief | Mo Mischief | – | 45,025 |
10 |
Series Mo Temptation | Mo Temptation | 5,152 | – | |||||||
Series Monomoy Girl | Monomoy Girl | – | 91,830 | |||||||
Series Moonbow 20 | Moonbow 20 | 2,589 | – | |||||||
Series Motion Emotion | Motion Emotion | – | 15,055 | |||||||
Series Mrs Whistler | Mrs Whistler | 26,165 | 30,601 | |||||||
Series My Fast One 20 | My Fast One 20 | 2,733 | – | |||||||
Series Naismith | Naismith | 28,359 | 26,760 | |||||||
Series National Road | National Road | 36,667 | – | |||||||
Series Northern Smile 20 | Pep Rally | 24,990 | – | |||||||
Series NY Exacta | NY Exacta | 37,763 | 37,469 | |||||||
Series Our Miss Jones 19 | Celebrity News | 42,300 | 4,978 | |||||||
Series Palace Foal | Palace Foal | – | 2,601 | |||||||
Series Popular Demand | Popular Demand | – | 32,792 | |||||||
Series Power Up Paynter | Power Up Paynter | – | 11,551 | |||||||
Series Queen Amira 19 | Regal Rebel | 23,438 | 5,746 | |||||||
Series Race Hunter 19 | Chasing Time | 60,183 | 48,702 | |||||||
Series Salute to America | Salute to America | 21,150 | 4,097 | |||||||
Series Sigesmund | Sigesmund | – | – | |||||||
Series Silverpocketsfull 19 | Iron Works | 57,759 | 60,050 | |||||||
Series Social Dilemma | Social Dilemma | – | 17,928 | |||||||
Series Song of Bernadette 20 | Cable Boss | 93,297 | – | |||||||
Series Speightstown Belle 19 | Ancient Royalty | – | (6,106 | ) | ||||||
Series Spirit 20 | Phantom Ride | 58,040 | – | |||||||
Series Squared Straight | Squared Straight | – | 6,425 | |||||||
Series Stay Fabulous | Stay Fabulous | 2,806 | – | |||||||
Series Storm Shooter | Storm Shooter | 60,954 | 37,089 | |||||||
Series Sunny 18 | Solar Strike | – | 35,055 | |||||||
Series Sunsanddrinkinhand | Sunsanddrinkinhand | 23,684 | – | |||||||
Series Sweet Sweet Annie 19 | In Due Time | (200,402 | ) | 19,124 | ||||||
Series Tapitry 19 | Infinite Empire | 27,800 | 27,800 | |||||||
Series Tell All 19 | Walk the Talk | 16,100 | 26,134 | |||||||
Series Tell the Duchess 19 | Duke of Love | 36,163 | 4,304 | |||||||
Series The Filly Four | The Filly Four | (160,422 | ) | 273,630 | ||||||
Series Thirteen Stripes | Thirteen Stripes | 22,211 | 24,184 | |||||||
Series Timeless Trick 20 | Interstellar | 11,500 | – | |||||||
Series Tizamagician | Tizamagician | 18,405 | 36,178 | |||||||
Series Tufnel | Tufnel | 31,049 | – | |||||||
Series Two Trail Sioux 17 | Annahilate | – | 33,800 | |||||||
Series Two Trail Sioux 17K | Two Trail Sioux 17K | – | 11,800 | |||||||
Series Vertical Threat | Vertical Threat | 800 | 13,296 | |||||||
Series Vow | Vow | 26,927 | 10,144 | |||||||
Series War Safe | War Safe | 46,706 | 1,290 |
11 |
Series Wayne O | Wayne O | – | 224,464 | |||||||
Series Who Runs the World | Who Runs the World | 112,187 | – | |||||||
Series Whosbeeninmybed 19 | Micro Share | 47,704 | 44,969 | |||||||
Series Without Delay 19 | Golden Quality | 20,900 | 1,833 | |||||||
Series Wonder Upon a Star 19 | Star Six Nine | 119,450 | 71,382 | |||||||
Series Yes This Time | Yes This Time | 19,692 | 44,998 | |||||||
Series You Make Luvin Fun 19 | Magical Ways | 45,600 | 38,089 | |||||||
Totals | $ | 3,817,059 | $ | 3,687,696 |
Operating Expenses – General and Administrative
For the six-months period ended June 30, 2022, and June 30, 2021, the Company incurred general and administrative fees of $271,556 and $198,851, respectively, an increase of $72,705. This is due to an increase in the minimum annual General and Administrative expense that is incurred by each Series. In addition, many of the horses that incurred expenses in the prior period incurred the subsequent year’s fee in the current period. These increase in the total amount of offerings combined with larger offerings contributed to an overall increase in the general and administrative expense for the Company for the period ending June 30, 2022 relative to the prior period.
The general and administrative fees incurred on a series-by-series basis as of June 30, 2022, and June 30, 2021 are as follows:
Series Name | Underlying Asset | 30-Jun-22 | 30-Jun-21 | |||||||
Series Action Bundle | Action Bundle | $ | – | $ | 2,400 | |||||
Series Adjust 20 | Jai Ho | – | – | |||||||
Series Amandrea | Amandrea | – | 825 | |||||||
Series Ambleside Park 19 | Lookwhogotlucky | 2,400 | 3,200 | |||||||
Series Apple Down Under 19 | Howboutdemapples | – | 3,200 | |||||||
Series Ari the Adventurer 19 | Kanthari | 3,600 | 2,400 | |||||||
Series Athenian Beauty 19 | Quantum Theory | 1,200 | 3,200 | |||||||
Series Authentic | Authentic | 17,639 | 23,388 | |||||||
Series Awe Hush 19 | Can't Hush This | 2,400 | 3,200 | |||||||
Series Balletic | Balletic | 3,600 | – | |||||||
Series Bella Chica | Bella Chica | – | 2,300 | |||||||
Series Big Mel | Big Mel | – | 800 | |||||||
Series Black Escort 19 | Halofied | 2,100 | – | |||||||
Series Captain Sparrow | Captain Sparrow | – | – | |||||||
Series Carrothers | Carrothers | 3,600 | – | |||||||
Series Cayala 19 | Provocateur | 3,600 | 4,400 | |||||||
Series Chad Brown Bundle | Chad Brown Bundle | 3,600 | – | |||||||
Series Classic Cut | Classic Cut | 3,600 | – | |||||||
Series Classofsixtythree 19 | Sixtythreecaliber | 2,400 | 3,200 | |||||||
Series Co Cola 19 | Search Engine | 3,600 | 1,800 | |||||||
Series Collusion Illusion | Collusion Illusion | 2,600 | 5,200 | |||||||
Series Consecrate 19 | Sacred Beauty | 1,200 | 3,200 |
12 |
Series Courtisane 19 | Tap the Gavel | 3,600 | 1,800 | |||||||
Series Cuvier | Cuvier | 400 | – | |||||||
Series Daddys Joy | Daddy's Joy | 1,500 | 2,300 | |||||||
Series Dancing Crane | Dancing Crane | 2,100 | – | |||||||
Series Daring Dancer 20 | Daring Dancer 20 | 2,400 | – | |||||||
Series Deep Cover | Deep Cover | 2,535 | 2,500 | |||||||
Series Demogorgon | Demogorgon | 2,100 | – | |||||||
Series Desire Street 19 | Always Hopeful | 2,400 | 800 | |||||||
Series Echo Warrior 19 | Hero Status | 4,400 | 2,400 | |||||||
Series Edge Racing Summer Fun-d | Summer Fun | – | – | |||||||
Series Escape Route | Escape Route | 2,100 | 800 | |||||||
Series Essential Rose 20 | Rosie's Alibi | 3,600 | – | |||||||
Series Exonerated 19 | Above Suspicion | 3,200 | 3,200 | |||||||
Series Fenwick Hall 20 | Inspector | 1,200 | – | |||||||
Series Flora Dora 20 | Spun Intended | – | – | |||||||
Series Forever Rose | Forever Rose | 400 | – | |||||||
Series Frosted Oats | Frosted Oats | 3,635 | 4,400 | |||||||
Series Future Stars Stable | Future Stars Stable | 3,615 | 4,400 | |||||||
Series Gentleman Gerry | Gentleman Gerry | – | – | |||||||
Series Going to Vegas | Going to Vegas | 4,400 | 3,600 | |||||||
Series Got Stormy | Got Stormy | – | 3,600 | |||||||
Series Grand Traverse Bay 19 | Cornice Traverse | 2,400 | 1,200 | |||||||
Series Grand Traverse Bay 20 | Grand Traverse Bay 20 | 2,400 | – | |||||||
Series Helicopter Money | Helicopter Money | 600 | – | |||||||
Series Im A Looker 20 | I'm a Looker 20 | 600 | – | |||||||
Series Into Summer 19 | Malibu Mayhem | 3,200 | 1,200 | |||||||
Series Just Louise 19 | Forbidden Kingdom | 3,200 | 3,200 | |||||||
Series Keertana 18 | American Heiress | 800 | 800 | |||||||
Series Kichiro | Kichiro | – | – | |||||||
Series Lane Way | Lane Way | 3,800 | 3,800 | |||||||
Series Latte Da 19 | Inalattetrouble | 4,662 | 3,600 | |||||||
Series Lazy Daisy | Lazy Daisy | – | – | |||||||
Series Le Relais 20 | Show Your Cards | 1,200 | – | |||||||
Series Lost Empire 19 | Laforgia | 4,400 | 4,400 | |||||||
Series Madeira Wine | Madeira Wine | 1,000 | – | |||||||
Series Man Among Men | Man Among Men | 3,200 | 3,200 | |||||||
Series Margaret Reay 19 | A Mo Reay | 2,435 | 3,200 | |||||||
Series Margarita Friday 19 | Straight No Chaser | 3,200 | – | |||||||
Series Martita Sangrita 17 | Carpe Vinum | 1,500 | 2,300 | |||||||
Series Mayan Milagra 19 | Tepeu | 2,100 | – | |||||||
Series Midnight Sweetie 19 | Dolce Notte | 2,400 | 3,200 | |||||||
Series Miss Puzzle | Miss Tapit | – | 2,300 |
13 |
Series Miss Sakamoto | Miss Sakamoto | 3,600 | 1,800 | |||||||
Series Mo Mischief | Mo Mischief | – | 2,525 | |||||||
Series Mo Temptation | Mo Temptation | 1,200 | – | |||||||
Series Monomoy Girl | Monomoy Girl | – | 3,600 | |||||||
Series Moonbow 20 | Moonbow 20 | 800 | – | |||||||
Series Motion Emotion | Motion Emotion | – | 1,200 | |||||||
Series Mrs Whistler | Mrs Whistler | 2,400 | 1,200 | |||||||
Series My Fast One 20 | My Fast One 20 | 400 | – | |||||||
Series Naismith | Naismith | 800 | 662 | |||||||
Series National Road | National Road | – | – | |||||||
Series Northern Smile 20 | Pep Rally | – | – | |||||||
Series NY Exacta | NY Exacta | 35 | (1,069 | ) | ||||||
Series Our Miss Jones 19 | Celebrity News | 2,400 | 1,200 | |||||||
Series Palace Foal | Palace Foal | – | – | |||||||
Series Popular Demand | Popular Demand | – | 5,800 | |||||||
Series Power Up Paynter | Power Up Paynter | – | 1,500 | |||||||
Series Queen Amira 19 | Regal Rebel | 2,400 | 800 | |||||||
Series Race Hunter 19 | Chasing Time | 3,600 | 1,800 | |||||||
Series Salute to America | Salute to America | 2,400 | 800 | |||||||
Series Sigesmund | Sigesmund | – | – | |||||||
Series Silverpocketsfull 19 | Iron Works | 3,600 | 1,800 | |||||||
Series Social Dilemma | Social Dilemma | – | 2,400 | |||||||
Series Song of Bernadette 20 | Cable Boss | 3,600 | – | |||||||
Series Speightstown Belle 19 | Ancient Royalty | – | 2,000 | |||||||
Series Spirit 20 | Phantom Ride | 1,200 | – | |||||||
Series Squared Straight | Squared Straight | – | 800 | |||||||
Series Stay Fabulous | Stay Fabulous | 400 | – | |||||||
Series Storm Shooter | Storm Shooter | 45 | 4,225 | |||||||
Series Sunny 18 | Solar Strike | – | 800 | |||||||
Series Sunsanddrinkinhand | Sunsanddrinkinhand | – | – | |||||||
Series Sweet Sweet Annie 19 | In Due Time | 3,600 | – | |||||||
Series Tapitry 19 | Infinite Empire | 3,200 | 3,200 | |||||||
Series Tell All 19 | Walk the Talk | 2,100 | – | |||||||
Series Tell the Duchess 19 | Duke of Love | 2,400 | 800 | |||||||
Series The Filly Four | The Filly Four | 40,755 | 16,846 | |||||||
Series Thirteen Stripes | Thirteen Stripes | 5,000 | 6,600 | |||||||
Series Timeless Trick 20 | Interstellar | – | – | |||||||
Series Tizamagician | Tizamagician | 4,900 | 2,300 | |||||||
Series Tufnel | Tufnel | 3,600 | – | |||||||
Series Two Trail Sioux 17 | Annahilate | – | 800 | |||||||
Series Two Trail Sioux 17K | Two Trail Sioux 17K | – | 800 | |||||||
Series Vertical Threat | Vertical Threat | 800 | 2,300 |
14 |
Series Vow | Vow | 2,400 | 1,200 | |||||||
Series War Safe | War Safe | 2,400 | – | |||||||
Series Wayne O | Wayne O | – | (750 | ) | ||||||
Series Who Runs the World | Who Runs the World | 3,600 | – | |||||||
Series Whosbeeninmybed 19 | Micro Share | 4,400 | 1,800 | |||||||
Series Without Delay 19 | Golden Quality | 2,100 | – | |||||||
Series Wonder Upon a Star 19 | Star Six Nine | 10,975 | 2,400 | |||||||
Series Yes This Time | Yes This Time | 3,025 | – | |||||||
Series You Make Luvin Fun 19 | Magical Ways | 3,600 | 1,800 | |||||||
Totals | $ | 271,556 | $ | 198,851 |
Operating Expenses – Management Fee
For the six-months period ended June 30, 2022, and June 30, 2021, the Company incurred Management Fee expenses of $1,056,651 and $898,703, respectively, an increase of $157,948. The increase is due primarily to the value of the overall offerings during the current period relative to the prior period. In addition, a change in fee structure was instituted in 2022 which caused an increase in the expense.
The Management Fee expenses on a series-by-series basis as of June 30, 2022, and June 30, 2021 are as follows:
Series Name | Underlying Asset | 30-Jun-22 | 30-Jun-21 | |||||||
Series Action Bundle | Action Bundle | $ | – | $ | 57,382 | |||||
Series Adjust 20 | Jai Ho | 19,294 | – | |||||||
Series Amandrea | Amandrea | – | 469 | |||||||
Series Ambleside Park 19 | Lookwhogotlucky | 376 | – | |||||||
Series Apple Down Under 19 | Howboutdemapples | – | – | |||||||
Series Ari the Adventurer 19 | Kanthari | – | 65,025 | |||||||
Series Athenian Beauty 19 | Quantum Theory | 774 | – | |||||||
Series Authentic | Authentic | – | – | |||||||
Series Awe Hush 19 | Can't Hush This | 1,015 | – | |||||||
Series Balletic | Balletic | 86,268 | – | |||||||
Series Bella Chica | Bella Chica | – | – | |||||||
Series Big Mel | Big Mel | – | – | |||||||
Series Black Escort 19 | Halofied | 2,950 | 7,670 | |||||||
Series Captain Sparrow | Captain Sparrow | 15,435 | – | |||||||
Series Carrothers | Carrothers | 16,685 | 22,407 | |||||||
Series Cayala 19 | Provocateur | 5,715 | 68 | |||||||
Series Chad Brown Bundle | Chad Brown Bundle | 175,500 | – | |||||||
Series Classic Cut | Classic Cut | – | – | |||||||
Series Classofsixtythree 19 | Sixtythreecaliber | 2,100 | – | |||||||
Series Co Cola 19 | Search Engine | 2,805 | 41,372 | |||||||
Series Collusion Illusion | Collusion Illusion | 27 | – | |||||||
Series Consecrate 19 | Sacred Beauty | 369 | 47 |
15 |
Series Courtisane 19 | Tap the Gavel | 4,385 | 51,230 | |||||||
Series Cuvier | Cuvier | – | – | |||||||
Series Daddys Joy | Daddy's Joy | 1,110 | 699 | |||||||
Series Dancing Crane | Dancing Crane | 140 | 18,480 | |||||||
Series Daring Dancer 20 | Daring Dancer 20 | 15,188 | – | |||||||
Series Deep Cover | Deep Cover | 5,709 | – | |||||||
Series Demogorgon | Demogorgon | – | – | |||||||
Series Desire Street 19 | Always Hopeful | 1,312 | – | |||||||
Series Echo Warrior 19 | Hero Status | 20,648 | 31,329 | |||||||
Series Edge Racing Summer Fun-d | Summer Fun | 7,000 | – | |||||||
Series Escape Route | Escape Route | 4,500 | – | |||||||
Series Essential Rose 20 | Rosie's Alibi | 51,408 | – | |||||||
Series Exonerated 19 | Above Suspicion | – | – | |||||||
Series Fenwick Hall 20 | Inspector | 48,480 | – | |||||||
Series Flora Dora 20 | Spun Intended | 13,782 | – | |||||||
Series Forever Rose | Forever Rose | – | – | |||||||
Series Frosted Oats | Frosted Oats | 2,768 | – | |||||||
Series Future Stars Stable | Future Stars Stable | 3,157 | 833 | |||||||
Series Gentleman Gerry | Gentleman Gerry | 18,000 | – | |||||||
Series Going to Vegas | Going to Vegas | 7,395 | 68,937 | |||||||
Series Got Stormy | Got Stormy | – | 39,628 | |||||||
Series Grand Traverse Bay 19 | Cornice Traverse | 372 | 37,883 | |||||||
Series Grand Traverse Bay 20 | Grand Traverse Bay 20 | 13,631 | – | |||||||
Series Helicopter Money | Helicopter Money | – | – | |||||||
Series Im A Looker 20 | I'm a Looker 20 | – | – | |||||||
Series Into Summer 19 | Malibu Mayhem | 554 | – | |||||||
Series Just Louise 19 | Forbidden Kingdom | 18,386 | 275 | |||||||
Series Keertana 18 | American Heiress | – | 23 | |||||||
Series Kichiro | Kichiro | – | – | |||||||
Series Lane Way | Lane Way | – | 227 | |||||||
Series Latte Da 19 | Inalattetrouble | – | – | |||||||
Series Lazy Daisy | Lazy Daisy | – | – | |||||||
Series Le Relais 20 | Show Your Cards | 76,923 | – | |||||||
Series Lost Empire 19 | Laforgia | 26 | 399 | |||||||
Series Madeira Wine | Madeira Wine | 7,000 | – | |||||||
Series Man Among Men | Man Among Men | – | – | |||||||
Series Margaret Reay 19 | A Mo Reay | 1,181 | – | |||||||
Series Margarita Friday 19 | Straight No Chaser | 49,501 | – | |||||||
Series Martita Sangrita 17 | Carpe Vinum | 4,454 | 588 | |||||||
Series Mayan Milagra 19 | Tepeu | – | 21,926 | |||||||
Series Midnight Sweetie 19 | Dolce Notte | – | – | |||||||
Series Miss Puzzle | Miss Tapit | – | – | |||||||
Series Miss Sakamoto | Miss Sakamoto | 11,298 | 14,280 | |||||||
Series Mo Mischief | Mo Mischief | – | – |
16 |
Series Mo Temptation | Mo Temptation | – | – | |||||||
Series Monomoy Girl | Monomoy Girl | – | 88,230 | |||||||
Series Moonbow 20 | Moonbow 20 | – | – | |||||||
Series Motion Emotion | Motion Emotion | – | 13,855 | |||||||
Series Mrs Whistler | Mrs Whistler | 9,765 | 24,290 | |||||||
Series My Fast One 20 | My Fast One 20 | – | – | |||||||
Series Naismith | Naismith | 184 | 1,098 | |||||||
Series National Road | National Road | 20,000 | – | |||||||
Series Northern Smile 20 | Pep Rally | 16,200 | – | |||||||
Series NY Exacta | NY Exacta | 1,894 | 2,705 | |||||||
Series Our Miss Jones 19 | Celebrity News | 29,400 | – | |||||||
Series Palace Foal | Palace Foal | – | – | |||||||
Series Popular Demand | Popular Demand | – | – | |||||||
Series Power Up Paynter | Power Up Paynter | – | 51 | |||||||
Series Queen Amira 19 | Regal Rebel | 38 | – | |||||||
Series Race Hunter 19 | Chasing Time | 12,833 | 30,467 | |||||||
Series Salute to America | Salute to America | 4,750 | – | |||||||
Series Sigesmund | Sigesmund | – | – | |||||||
Series Silverpocketsfull 19 | Iron Works | 5,071 | 39,810 | |||||||
Series Social Dilemma | Social Dilemma | – | 15,528 | |||||||
Series Song of Bernadette 20 | Cable Boss | 40,609 | – | |||||||
Series Speightstown Belle 19 | Ancient Royalty | – | – | |||||||
Series Spirit 20 | Phantom Ride | 50,400 | – | |||||||
Series Squared Straight | Squared Straight | – | – | |||||||
Series Stay Fabulous | Stay Fabulous | – | – | |||||||
Series Storm Shooter | Storm Shooter | 1,576 | 2,864 | |||||||
Series Sunny 18 | Solar Strike | – | – | |||||||
Series Sunsanddrinkinhand | Sunsanddrinkinhand | 14,378 | – | |||||||
Series Sweet Sweet Annie 19 | In Due Time | 11,642 | 13,143 | |||||||
Series Tapitry 19 | Infinite Empire | – | – | |||||||
Series Tell All 19 | Walk the Talk | – | 18,156 | |||||||
Series Tell the Duchess 19 | Duke of Love | 18,888 | – | |||||||
Series The Filly Four | The Filly Four | 2,150 | 19,040 | |||||||
Series Thirteen Stripes | Thirteen Stripes | 545 | 2,023 | |||||||
Series Timeless Trick 20 | Interstellar | 8,000 | – | |||||||
Series Tizamagician | Tizamagician | – | 13,620 | |||||||
Series Tufnel | Tufnel | 149 | – | |||||||
Series Two Trail Sioux 17 | Annahilate | – | – | |||||||
Series Two Trail Sioux 17K | Two Trail Sioux 17K | – | – | |||||||
Series Vertical Threat | Vertical Threat | – | – | |||||||
Series Vow | Vow | 27 | – | |||||||
Series War Safe | War Safe | 28,556 | – |
17 |
Series Wayne O | Wayne O | – | 214 | |||||||
Series Who Runs the World | Who Runs the World | 55,037 | – | |||||||
Series Whosbeeninmybed 19 | Micro Share | 3,142 | 28,294 | |||||||
Series Without Delay 19 | Golden Quality | 3,800 | – | |||||||
Series Wonder Upon a Star 19 | Star Six Nine | – | 55,433 | |||||||
Series Yes This Time | Yes This Time | – | 27,973 | |||||||
Series You Make Luvin Fun 19 | Magical Ways | – | 20,734 | |||||||
Totals | $ | 1,056,651 | $ | 898,703 |
Operating Expenses – Depreciation
For the six-months period ended June 30, 2022, and June 30, 2021, the depreciation was $2,614,422 and $2,365,341, respectively, an increase of $249,081. The increase is due to both the quantity and the value of the overall assets increased from the period ending June 30, 2021. This is primarily attributed to the Company acquiring higher valued horses in the current period than in the previous period. The method of calculating depreciation remained unchanged during the current period.
The depreciation on a series-by-series basis as of June 30, 2022 and June 30, 2021 are as follows:
Series Name | Underlying Asset | 30-Jun-22 | 30-Jun-21 | |||||||
Series Action Bundle | Action Bundle | $ | – | $ | – | |||||
Series Adjust 20 | Jai Ho | 3,136 | – | |||||||
Series Amandrea | Amandrea | – | 19,250 | |||||||
Series Ambleside Park 19 | Lookwhogotlucky | 7,858 | 7,858 | |||||||
Series Apple Down Under 19 | Howboutdemapples | – | 7,000 | |||||||
Series Ari the Adventurer 19 | Kanthari | 51,319 | 26,540 | |||||||
Series Athenian Beauty 19 | Quantum Theory | 2,098 | 7,500 | |||||||
Series Authentic | Authentic | 522,880 | 726,526 | |||||||
Series Awe Hush 19 | Can't Hush This | 33,000 | 33,000 | |||||||
Series Balletic | Balletic | 78,750 | – | |||||||
Series Bella Chica | Bella Chica | 0 | 4,167 | |||||||
Series Big Mel | Big Mel | – | 90,368 | |||||||
Series Black Escort 19 | Halofied | 9,167 | 3,463 | |||||||
Series Captain Sparrow | Captain Sparrow | 2,509 | – | |||||||
Series Carrothers | Carrothers | 53,726 | 35,025 | |||||||
Series Cayala 19 | Provocateur | 41,000 | 41,000 | |||||||
Series Chad Brown Bundle | Chad Brown Bundle | 105,604 | – | |||||||
Series Classic Cut | Classic Cut | 42,000 | – | |||||||
Series Classofsixtythree 19 | Sixtythreecaliber | 20,833 | 20,833 | |||||||
Series Co Cola 19 | Search Engine | 55,781 | 20,365 | |||||||
Series Collusion Illusion | Collusion Illusion | 51,944 | 91,667 | |||||||
Series Consecrate 19 | Sacred Beauty | 1,269 | 5,466 | |||||||
Series Courtisane 19 | Tap the Gavel | 40,250 | 14,694 | |||||||
Series Cuvier | Cuvier | 1,565 | – |
18 |
Series Daddys Joy | Daddy's Joy | 5,338 | 7,999 | |||||||
Series Dancing Crane | Dancing Crane | 14,167 | 10,541 | |||||||
Series Daring Dancer 20 | Daring Dancer 20 | 7,875 | – | |||||||
Series Deep Cover | Deep Cover | 13,667 | 13,500 | |||||||
Series Demogorgon | Demogorgon | 15,000 | – | |||||||
Series Desire Street 19 | Always Hopeful | 14,280 | 3,729 | |||||||
Series Echo Warrior 19 | Hero Status | 28,350 | 15,677 | |||||||
Series Edge Racing Summer Fun-d | Summer Fun | 1,062 | – | |||||||
Series Escape Route | Escape Route | 7,067 | 7,067 | |||||||
Series Essential Rose 20 | Rosie's Alibi | 109,375 | – | |||||||
Series Exonerated 19 | Above Suspicion | 14,350 | 9,225 | |||||||
Series Fenwick Hall 20 | Inspector | 6,213 | – | |||||||
Series Flora Dora 20 | Spun Intended | 5,824 | – | |||||||
Series Forever Rose | Forever Rose | 1,953 | – | |||||||
Series Frosted Oats | Frosted Oats | 17,083 | 24,600 | |||||||
Series Future Stars Stable | Future Stars Stable | 52,090 | 58,875 | |||||||
Series Gentleman Gerry | Gentleman Gerry | 6,481 | – | |||||||
Series Going to Vegas | Going to Vegas | 56,667 | 36,371 | |||||||
Series Got Stormy | Got Stormy | – | – | |||||||
Series Grand Traverse Bay 19 | Cornice Traverse | 26,250 | 9,383 | |||||||
Series Grand Traverse Bay 20 | Grand Traverse Bay 20 | 6,563 | – | |||||||
Series Helicopter Money | Helicopter Money | 510 | – | |||||||
Series Im A Looker 20 | I'm a Looker 20 | 5,347 | – | |||||||
Series Into Summer 19 | Malibu Mayhem | 15,925 | 5,730 | |||||||
Series Just Louise 19 | Forbidden Kingdom | 25,500 | 25,500 | |||||||
Series Keertana 18 | American Heiress | 5,552 | 60,775 | |||||||
Series Kichiro | Kichiro | – | 931 | |||||||
Series Lane Way | Lane Way | 65,444 | 65,399 | |||||||
Series Latte Da 19 | Inalattetrouble | 10,101 | 18,955 | |||||||
Series Lazy Daisy | Lazy Daisy | – | – | |||||||
Series Le Relais 20 | Show Your Cards | 16,333 | – | |||||||
Series Lost Empire 19 | Laforgia | 38,250 | 38,250 | |||||||
Series Madeira Wine | Madeira Wine | 1,063 | – | |||||||
Series Man Among Men | Man Among Men | 24,600 | 24,600 | |||||||
Series Margaret Reay 19 | A Mo Reay | 27,333 | 27,333 | |||||||
Series Margarita Friday 19 | Straight No Chaser | 19,250 | 4,534 | |||||||
Series Martita Sangrita 17 | Carpe Vinum | 17,467 | 21,550 | |||||||
Series Mayan Milagra 19 | Tepeu | 18,333 | 6,926 | |||||||
Series Midnight Sweetie 19 | Dolce Notte | 12,300 | 12,300 | |||||||
Series Miss Puzzle | Miss Tapit | – | 2,228 | |||||||
Series Miss Sakamoto | Miss Sakamoto | 26,250 | 9,722 | |||||||
Series Mo Mischief | Mo Mischief | – | 42,500 |
19 |
Series Mo Temptation | Mo Temptation | 3,952 | – | |||||||
Series Monomoy Girl | Monomoy Girl | – | – | |||||||
Series Moonbow 20 | Moonbow 20 | 1,789 | – | |||||||
Series Motion Emotion | Motion Emotion | – | – | |||||||
Series Mrs Whistler | Mrs Whistler | 14,000 | 5,111 | |||||||
Series My Fast One 20 | My Fast One 20 | 2,333 | – | |||||||
Series Naismith | Naismith | 27,375 | 25,000 | |||||||
Series National Road | National Road | 16,667 | – | |||||||
Series Northern Smile 20 | Pep Rally | 8,790 | – | |||||||
Series NY Exacta | NY Exacta | 35,833 | 35,833 | |||||||
Series Our Miss Jones 19 | Celebrity News | 10,500 | 3,778 | |||||||
Series Palace Foal | Palace Foal | – | 2,601 | |||||||
Series Popular Demand | Popular Demand | – | 26,992 | |||||||
Series Power Up Paynter | Power Up Paynter | – | 10,000 | |||||||
Series Queen Amira 19 | Regal Rebel | 21,000 | 4,946 | |||||||
Series Race Hunter 19 | Chasing Time | 43,750 | 16,435 | |||||||
Series Salute to America | Salute to America | 14,000 | 3,297 | |||||||
Series Sigesmund | Sigesmund | – | – | |||||||
Series Silverpocketsfull 19 | Iron Works | 49,088 | 18,440 | |||||||
Series Social Dilemma | Social Dilemma | – | – | |||||||
Series Song of Bernadette 20 | Cable Boss | 49,088 | – | |||||||
Series Speightstown Belle 19 | Ancient Royalty | – | 9,130 | |||||||
Series Spirit 20 | Phantom Ride | 6,440 | – | |||||||
Series Squared Straight | Squared Straight | – | 1,472 | |||||||
Series Stay Fabulous | Stay Fabulous | 2,406 | – | |||||||
Series Storm Shooter | Storm Shooter | 23,387 | 30,000 | |||||||
Series Sunny 18 | Solar Strike | – | 34,255 | |||||||
Series Sunsanddrinkinhand | Sunsanddrinkinhand | 9,306 | – | |||||||
Series Sweet Sweet Annie 19 | In Due Time | 13,544 | 5,981 | |||||||
Series Tapitry 19 | Infinite Empire | 24,600 | 24,600 | |||||||
Series Tell All 19 | Walk the Talk | 14,000 | 7,978 | |||||||
Series Tell the Duchess 19 | Duke of Love | 14,875 | 3,504 | |||||||
Series The Filly Four | The Filly Four | 59,136 | 237,744 | |||||||
Series Thirteen Stripes | Thirteen Stripes | 16,667 | 15,561 | |||||||
Series Timeless Trick 20 | Interstellar | 3,500 | – | |||||||
Series Tizamagician | Tizamagician | 13,505 | 20,258 | |||||||
Series Tufnel | Tufnel | 27,300 | – | |||||||
Series Two Trail Sioux 17 | Annahilate | – | 4,258 | |||||||
Series Two Trail Sioux 17K | Two Trail Sioux 17K | – | 3,482 | |||||||
Series Vertical Threat | Vertical Threat | – | 10,996 |
20 |
Series Vow | Vow | 24,500 | 8,944 | |||||||
Series War Safe | War Safe | 15,750 | 1,290 | |||||||
Series Wayne O | Wayne O | – | 11,694 | |||||||
Series Who Runs the World | Who Runs the World | 53,550 | – | |||||||
Series Whosbeeninmybed 19 | Micro Share | 40,163 | 14,875 | |||||||
Series Without Delay 19 | Golden Quality | 15,000 | 1,833 | |||||||
Series Wonder Upon a Star 19 | Star Six Nine | 16,061 | 13,548 | |||||||
Series Yes This Time | Yes This Time | 16,667 | 17,025 | |||||||
Series You Make Luvin Fun 19 | Magical Ways | 42,000 | 15,556 | |||||||
Totals | $ | 2,614,422 | $ | 2,365,341 |
Operating Expenses – Loss on Horse Retirement
For the six-months period ended June 30, 2022, and June 30, 2021, the loss on horse retirement was $(125,570) and $224,800, respectively, a decrease of $350,370. The decrease is due to the timing and the change in remaining net asset value at the close out of the respective Series in the given period. In addition, certain horses were sold for more than their acquisition cost resulting in a gain for the respective Series.
The loss on horse retirement on a series-by-series basis as of June 30, 2022, and June 30, 2021 are as follows:
Series Name | Underlying Asset | 30-Jun-22 | 30-Jun-21 | |||||||
Series Action Bundle | Action Bundle | $ | – | $ | – | |||||
Series Adjust 20 | Jai Ho | – | – | |||||||
Series Amandrea | Amandrea | – | – | |||||||
Series Ambleside Park 19 | Lookwhogotlucky | – | – | |||||||
Series Apple Down Under 19 | Howboutdemapples | – | – | |||||||
Series Ari the Adventurer 19 | Kanthari | – | – | |||||||
Series Athenian Beauty 19 | Quantum Theory | (7,807 | ) | – | ||||||
Series Authentic | Authentic | – | – | |||||||
Series Awe Hush 19 | Can't Hush This | – | – | |||||||
Series Balletic | Balletic | – | – | |||||||
Series Bella Chica | Bella Chica | – | – | |||||||
Series Big Mel | Big Mel | – | – | |||||||
Series Black Escort 19 | Halofied | – | – | |||||||
Series Captain Sparrow | Captain Sparrow | – | – | |||||||
Series Carrothers | Carrothers | – | – | |||||||
Series Cayala 19 | Provocateur | – | – | |||||||
Series Chad Brown Bundle | Chad Brown Bundle | – | – | |||||||
Series Classic Cut | Classic Cut | – | – | |||||||
Series Classofsixtythree 19 | Sixtythreecaliber | – | – | |||||||
Series Co Cola 19 | Search Engine | – | – | |||||||
Series Collusion Illusion | Collusion Illusion | 219,056 | – | |||||||
Series Consecrate 19 | Sacred Beauty | (10,590 | ) | – | ||||||
Series Courtisane 19 | Tap the Gavel | – | – | |||||||
Series Cuvier | Cuvier | – | – |
21 |
Series Daddys Joy | Daddy's Joy | – | – | |||||||
Series Dancing Crane | Dancing Crane | – | – | |||||||
Series Daring Dancer 20 | Daring Dancer 20 | – | – | |||||||
Series Deep Cover | Deep Cover | – | – | |||||||
Series Demogorgon | Demogorgon | – | – | |||||||
Series Desire Street 19 | Always Hopeful | – | – | |||||||
Series Echo Warrior 19 | Hero Status | – | – | |||||||
Series Edge Racing Summer Fun-d | Summer Fun | – | – | |||||||
Series Escape Route | Escape Route | – | – | |||||||
Series Essential Rose 20 | Rosie's Alibi | – | – | |||||||
Series Exonerated 19 | Above Suspicion | – | – | |||||||
Series Fenwick Hall 20 | Inspector | – | – | |||||||
Series Flora Dora 20 | Spun Intended | – | – | |||||||
Series Forever Rose | Forever Rose | – | – | |||||||
Series Frosted Oats | Frosted Oats | – | – | |||||||
Series Future Stars Stable | Future Stars Stable | 6,161 | (8,500 | ) | ||||||
Series Gentleman Gerry | Gentleman Gerry | – | – | |||||||
Series Going to Vegas | Going to Vegas | – | – | |||||||
Series Got Stormy | Got Stormy | – | – | |||||||
Series Grand Traverse Bay 19 | Cornice Traverse | – | – | |||||||
Series Grand Traverse Bay 20 | Grand Traverse Bay 20 | – | – | |||||||
Series Helicopter Money | Helicopter Money | – | – | |||||||
Series Im A Looker 20 | I'm a Looker 20 | – | – | |||||||
Series Into Summer 19 | Malibu Mayhem | – | – | |||||||
Series Just Louise 19 | Forbidden Kingdom | – | – | |||||||
Series Keertana 18 | American Heiress | 5,659 | – | |||||||
Series Kichiro | Kichiro | – | 5,528 | |||||||
Series Lane Way | Lane Way | – | – | |||||||
Series Latte Da 19 | Inalattetrouble | 26,305 | – | |||||||
Series Lazy Daisy | Lazy Daisy | – | (8,713 | ) | ||||||
Series Le Relais 20 | Show Your Cards | – | – | |||||||
Series Lost Empire 19 | Laforgia | – | – | |||||||
Series Madeira Wine | Madeira Wine | (1,063 | ) | – | ||||||
Series Man Among Men | Man Among Men | – | – | |||||||
Series Margaret Reay 19 | A Mo Reay | – | – | |||||||
Series Margarita Friday 19 | Straight No Chaser | – | – | |||||||
Series Martita Sangrita 17 | Carpe Vinum | – | – | |||||||
Series Mayan Milagra 19 | Tepeu | – | – | |||||||
Series Midnight Sweetie 19 | Dolce Notte | – | – | |||||||
Series Miss Puzzle | Miss Tapit | – | – | |||||||
Series Miss Sakamoto | Miss Sakamoto | – | – | |||||||
Series Mo Mischief | Mo Mischief | – | – |
22 |
Series Mo Temptation | Mo Temptation | – | – | |||||||
Series Monomoy Girl | Monomoy Girl | – | – | |||||||
Series Moonbow 20 | Moonbow 20 | – | – | |||||||
Series Motion Emotion | Motion Emotion | – | – | |||||||
Series Mrs Whistler | Mrs Whistler | – | – | |||||||
Series My Fast One 20 | My Fast One 20 | – | – | |||||||
Series Naismith | Naismith | – | – | |||||||
Series National Road | National Road | – | – | |||||||
Series Northern Smile 20 | Pep Rally | – | – | |||||||
Series NY Exacta | NY Exacta | – | – | |||||||
Series Our Miss Jones 19 | Celebrity News | – | – | |||||||
Series Palace Foal | Palace Foal | – | – | |||||||
Series Popular Demand | Popular Demand | – | – | |||||||
Series Power Up Paynter | Power Up Paynter | – | – | |||||||
Series Queen Amira 19 | Regal Rebel | – | – | |||||||
Series Race Hunter 19 | Chasing Time | – | – | |||||||
Series Salute to America | Salute to America | – | – | |||||||
Series Sigesmund | Sigesmund | – | – | |||||||
Series Silverpocketsfull 19 | Iron Works | – | – | |||||||
Series Social Dilemma | Social Dilemma | – | – | |||||||
Series Song of Bernadette 20 | Cable Boss | – | – | |||||||
Series Speightstown Belle 19 | Ancient Royalty | – | (17,236 | ) | ||||||
Series Spirit 20 | Phantom Ride | – | – | |||||||
Series Squared Straight | Squared Straight | – | 4,153 | |||||||
Series Stay Fabulous | Stay Fabulous | – | – | |||||||
Series Storm Shooter | Storm Shooter | 35,946 | – | |||||||
Series Sunny 18 | Solar Strike | – | – | |||||||
Series Sunsanddrinkinhand | Sunsanddrinkinhand | – | – | |||||||
Series Sweet Sweet Annie 19 | In Due Time | (229,188 | ) | – | ||||||
Series Tapitry 19 | Infinite Empire | – | – | |||||||
Series Tell All 19 | Walk the Talk | – | – | |||||||
Series Tell the Duchess 19 | Duke of Love | – | – | |||||||
Series The Filly Four | The Filly Four | (262,463 | ) | – | ||||||
Series Thirteen Stripes | Thirteen Stripes | – | – | |||||||
Series Timeless Trick 20 | Interstellar | – | – | |||||||
Series Tizamagician | Tizamagician | – | – | |||||||
Series Tufnel | Tufnel | – | – | |||||||
Series Two Trail Sioux 17 | Annahilate | – | 28,742 | |||||||
Series Two Trail Sioux 17K | Two Trail Sioux 17K | – | 7,518 | |||||||
Series Vertical Threat | Vertical Threat | – | – | |||||||
Series Vow | Vow | – | – | |||||||
Series War Safe | War Safe | – | – |
23 |
Series Wayne O | Wayne O | – | 213,306 | |||||||
Series Who Runs the World | Who Runs the World | – | – | |||||||
Series Whosbeeninmybed 19 | Micro Share | – | – | |||||||
Series Without Delay 19 | Golden Quality | – | – | |||||||
Series Wonder Upon a Star 19 | Star Six Nine | 92,414 | – | |||||||
Series Yes This Time | Yes This Time | – | – | |||||||
Series You Make Luvin Fun 19 | Magical Ways | – | – | |||||||
Totals | $ | (125,570 | ) | $ | 224,800 |
As a result, the Company’s aggregate net loss across all series for the six-month periods ended June 30, 2022, and June 30, 2021 was $4,326,015 and $4,694,966, respectively.
Liquidity and Capital Resources
During the six-month periods ended June 30, 2022, and June 30, 2021, the Company has relied on advances from the Manager, raising capital to fund its operations and the issuance of securities under Regulation A offerings, as well as under Regulation D offerings, as sources of capital. The funds raised supported the repayment of Manager’s loans (advanced to obtain Underlying Assets), accrue management fees and set aside cash held by the Manager as horse reserve accounts to cover certain horse expenses.
Of the horses that were part of an offering as of June 30, 2022 that have not yet started racing and thus potential revenue-generating activities, the Company anticipates they will begin racing as follows:
Series Name | Underlying Asset | Target for Revenue Generation | ||
Series Adjust 20 | Jai Ho | Mar-23 | ||
Series Ari the Adventurer 19 | Kanthari | Jan-23 | ||
Series Balletic | Balletic | Dec-22 | ||
Series Captain Sparrow | Captain Sparrow | Oct-22 | ||
Series Chad Brown Bundle | Chad Brown Bundle | Oct-22 | ||
Series Classic Cut | Classic Cut | Mar-23 | ||
Series Cuvier | Cuvier | Dec-22 | ||
Series Daring Dancer 20 | Boppy | Feb-23 | ||
Series Edge Racing Summer Fun-d | Edge Racing Summer Fun-d | Aug-22 | ||
Series Essential Rose 20 | Rosie's Alibi | Aug-22 | ||
Series Fenwick Hall 20 | Inspector | Sep-22 | ||
Series Flora Dora 20 | Spun Intended | Oct-22 | ||
Series Forever Rose | Forever Rose | Feb-23 | ||
Series Gentleman Gerry | Gentleman Gerry | Sep-22 | ||
Series Grand Traverse Bay 20 | Sun Valley Road | Nov-22 | ||
Series Helicopter Money | Helicopter Money | Dec-22 | ||
Series Im A Looker 20 | I'm a Looker 20 | Jan-23 | ||
Series Latte Da 19 | Inalattetrouble | Retired/Sold | ||
Series Le Relais 20 | Show Your Cards | Deceased | ||
Series Midnight Sweetie 19 | Dolce Notte | Retired | ||
Series Mo Temptation | Mo Temptation | Nov-22 | ||
Series Moonbow 20 | Moonbow 20 | Dec-22 | ||
Series My Fast One 20 | My Fast One 20 | Feb-23 | ||
Series Northern Smile 20 | Pep Rally | Oct-22 | ||
Series Song of Bernadette 20 | Cable Boss | Feb-23 | ||
Series Spirit 20 | Phantom Ride | Sep-22 | ||
Series Stay Fabulous | Stay Fabulous | Oct-22 | ||
Series Tell All 19 | Walk the Talk | To be Retired | ||
Series Timeless Trick 20 | Interstellar | Nov-22 | ||
Series Tufnel | Tufnel | Feb-23 | ||
Series Who Runs the World | Who Runs the World | Feb-23 | ||
Series Wonder Upon a Star 19 | Star Six Nine | Retired | ||
Series You Make Luvin Fun 19 | Magical Ways | Nov-22 |
24 |
The Company anticipates such horses will begin racing and, thus, potentially generating revenue as early as the above dates, which should allow such Series to maintain an ongoing reserve for Operating Expenses without the need to raise additional capital. Should such Underlying Asset need more time than anticipated in training or fails to generate sufficient revenues as expected, the Manager may loan the Series money from time-to-time to cover its Operating Expenses. The Company has purchased insurance for such Underlying Assets.
The Company (if viewed as if it were a separate and distinct entity apart from its Series) will not have much, if any, need for cash reserves and, instead, each Series will have liquidity needs that are built into Operating Expense reserves and covered by future revenue-generating activities. Specifically, it is the intent of the Company to reserve Operating Expenses, including Upkeep Fees, at the outset of an offering sufficient to maintain the Underlying Asset without the need to raise additional capital for such Series . The Company intends to rely on revenue generated from such Underlying Asset to provide ongoing working capital needed to fund the Operating Expenses of each such Series thereafter. Further, in the event that a Series is not fully subscribed, or needs additional funding beyond the Operating Expense reserves, (i) the Manager and/or its affiliates may exercise their right to purchase interests in the Series on the same terms and conditions as the investors, (ii) if such Underlying Asset was originally acquired by the Company or an affiliate pursuant to a Profit Participation Convertible Promissory Note or similar instrument, such party may exercise its conversion rights, and/or (iii) the Series may obtain a loan from the Manager, affiliates or third parties to obtain sufficient working capital to operate the underlying asset.
Since inception, the Company has relied on advances from the Manager and raising capital to fund its operations. As of June 30, 2022, the Company had negative capital and will likely incur losses prior to generating positive working capital. During the next 12 months, the Company intends to fund its operations, including those of its Series with funding from a Regulation A offering campaign, loans from its Manager and funds from revenue producing activities, if and when such can be realized. If the Company cannot secure additional short-term capital, it may cease operations on a series-by-series basis. The financial statements and related notes thereto included in this Semi-Annual Report do not include any adjustments that might result from these uncertainties.
Horse Reserve Funds
During the six-month periods ended June 30, 2022, and June 30, 2021, the Company had a total of $4,156,369 and $3,482,900, respectively, in reserve funds held by the Manager for each series of an Underlying Asset as outlined below.
As of June 30, 2022, the Company’s positions of borrowings and amounts owed to it by the Manager are as follows:
Series Name | Underlying Asset | Horse reserve account owed to/(by) Series | (Horse acquisition loans owed to Manager) | Net amount owed to/(by) Series | Horse Reserves to Last Through | |||||||||||||
Series Action Bundle | Action Bundle | $ | – | $ | – | – | – | |||||||||||
Series Adjust 20 | Jai Ho | 21,576 | – | 21,576 | 12/31/2022 | |||||||||||||
Series Amandrea | Amandrea | – | – | – | – | |||||||||||||
Series Ambleside Park 19 | Lookwhogotlucky | 8,869 | – | 8,869 | 9/30/2022 | |||||||||||||
Series Apple Down Under 19 | Howboutdemapples | – | – | – | – | |||||||||||||
Series Ari the Adventurer 19 | Kanthari | 25,720 | – | 25,720 | 12/31/2022 | |||||||||||||
Series Athenian Beauty 19 | Quantum Theory | – | – | – | – | |||||||||||||
Series Authentic | Authentic | (348,243 | ) | – | (348,243 | ) | – | |||||||||||
Series Awe Hush 19 | Can't Hush This | 21,480 | – | 21,480 | 9/30/2022 | |||||||||||||
Series Balletic | Balletic | 141,463 | (136 | ) | 141,327 | 12/31/2023 |
25 |
Series Bella Chica | Bella Chica | – | – | – | – | |||||||||||||
Series Big Mel | Big Mel | – | – | – | – | |||||||||||||
Series Black Escort 19 | Halofied | (602 | ) | – | (602 | ) | – | |||||||||||
Series Captain Sparrow | Captain Sparrow | 20,705 | – | 20,705 | 12/31/2022 | |||||||||||||
Series Carrothers | Carrothers | 30,523 | – | 30,523 | 12/31/2022 | |||||||||||||
Series Cayala 19 | Provocateur | 36,417 | – | 36,417 | 12/31/2022 | |||||||||||||
Series Chad Brown Bundle | Chad Brown Bundle | 252,128 | – | 252,128 | 6/30/2024 | |||||||||||||
Series Classic Cut | Classic Cut | 125,756 | – | 125,756 | 6/30/2024 | |||||||||||||
Series Classofsixtythree 19 | Sixtythreecaliber | 15,978 | – | 15,978 | 9/30/2022 | |||||||||||||
Series Co Cola 19 | Search Engine | 61,660 | – | 61,660 | 3/31/2023 | |||||||||||||
Series Collusion Illusion | Collusion Illusion | – | – | – | – | |||||||||||||
Series Consecrate 19 | Sacred Beauty | – | – | – | – | |||||||||||||
Series Courtisane 19 | Tap the Gavel | 78,961 | – | 78,961 | 6/30/2023 | |||||||||||||
Series Cuvier | Cuvier | 83,755 | (160,000 | ) | (76,245 | ) | 9/30/2024 | |||||||||||
Series Daddys Joy | Daddy's Joy | (24,601 | ) | – | (24,601 | ) | – | |||||||||||
Series Dancing Crane | Dancing Crane | 303 | – | 303 | 7/30/2022 | |||||||||||||
Series Daring Dancer 20 | Boppy | 27,605 | – | 27,605 | 6/30/2023 | |||||||||||||
Series De Mystique 17 | Dancing Destroyer | – | – | – | – | |||||||||||||
Series Deep Cover | Deep Cover | 13,607 | – | 13,607 | 9/30/2022 | |||||||||||||
Series Demogorgon | Demogorgon | 970 | – | 970 | 7/30/2022 | |||||||||||||
Series Desire Street 19 | Always Hopeful | 44,684 | – | 44,684 | 6/30/2023 | |||||||||||||
Series Echo Warrior 19 | Hero Status | 68,425 | – | 68,425 | 6/30/2023 | |||||||||||||
Series Edge Racing Summer Fun-d | Edge Racing Summer Fun-d | 176,768 | (162,000 | ) | 14,768 | 12/31/2022 | ||||||||||||
Series Escape Route | Escape Route | 6,617 | – | 6,617 | 7/30/2022 | |||||||||||||
Series Essential Rose 20 | Rosie's Alibi | 152,333 | – | 152,333 | 12/31/2023 | |||||||||||||
Series Exonerated 19 | Above Suspicion | 10,399 | – | 10,399 | 8/30/2022 | |||||||||||||
Series Fenwick Hall 20 | Inspector | 89,149 | – | 89,149 | 9/30/2024 | |||||||||||||
Series Flora Dora 20 | Spun Intended | 16,248 | – | 16,248 | 12/31/2022 | |||||||||||||
Series Forever Rose | Forever Rose | 57,426 | (187,000 | ) | (129,574 | ) | 6/30/2024 | |||||||||||
Series Frosted Oats | Frosted Oats | 22,354 | – | 22,354 | 12/31/2022 | |||||||||||||
Series Future Stars Stable | Future Stars Stable | 63,533 | – | 63,533 | 12/31/2022 | |||||||||||||
Series Gentleman Gerry | Gentleman Gerry | 26,290 | (13,500 | ) | 12,790 | 12/31/2022 | ||||||||||||
Series Going to Vegas | Going to Vegas | 13,919 | – | 13,919 | 9/30/2022 | |||||||||||||
Series Got Stormy | Got Stormy | – | – | – | – | |||||||||||||
Series Grand Traverse Bay 19 | Cornice Traverse | 60,971 | – | 60,971 | 6/30/2023 | |||||||||||||
Series Grand Traverse Bay 20 | Sun Valley Road | 26,549 | 103 | 26,652 | 6/30/2023 | |||||||||||||
Series Helicopter Money | Helicopter Money | 118,014 | (160,800 | ) | (42,786 | ) | 8/30/2024 | |||||||||||
Series Im A Looker 20 | I'm a Looker 20 | 195,474 | (464,000 | ) | (268,526 | ) | 8/30/2024 | |||||||||||
Series Into Summer 19 | Malibu Mayhem | 63,371 | – | 63,371 | 6/30/2024 | |||||||||||||
Series Just Louise 19 | Forbidden Kingdom | 1,589 | – | 1,589 | 7/30/2022 | |||||||||||||
Series Keertana 18 | American Heiress | – | – | – | – | |||||||||||||
Series Kichiro | Kichiro | – | – | – | – |
26 |
Series Lane Way | Lane Way | (46,458 | ) | – | (46,458 | ) | – | |||||||||||
Series Latte Da 19 | Inalattetrouble | 16,269 | – | 16,269 | 8/30/2022 | |||||||||||||
Series Lazy Daisy | Lazy Daisy | – | – | – | – | |||||||||||||
Series Le Relais 20 | Show Your Cards | 126,535 | (88,308 | ) | 38,227 | 6/30/2024 | ||||||||||||
Series Lost Empire 19 | Laforgia | 32,823 | – | 32,823 | 12/31/2023 | |||||||||||||
Series Madeira Wine | Madeira Wine | – | – | – | – | |||||||||||||
Series Man Among Men | Man Among Men | 13,077 | – | 13,077 | 9/30/2022 | |||||||||||||
Series Margaret Reay 19 | A Mo Reay | 13,907 | – | 13,907 | 9/30/2022 | |||||||||||||
Series Margarita Friday 19 | Straight No Chaser | 105,006 | (847 | ) | 104,160 | 12/31/2023 | ||||||||||||
Series Martita Sangrita 17 | Carpe Vinum | (33,060 | ) | – | (33,060 | ) | – | |||||||||||
Series Mayan Milagra 19 | Tepeu | (6,571 | ) | – | (6,571 | ) | – | |||||||||||
Series Midnight Sweetie 19 | Dolce Notte | 9,945 | – | 9,945 | 8/30/2022 | |||||||||||||
Series Miss Puzzle | Miss Tapit | – | – | – | – | |||||||||||||
Series Miss Sakamoto | Miss Sakamoto | 61,008 | 46 | 61,054 | 9/30/2023 | |||||||||||||
Series Mo Mischief | Mo Mischief | – | – | – | – | |||||||||||||
Series Mo Temptation | Mo Temptation | 125,169 | (243,600 | ) | (118,431 | ) | 8/30/2024 | |||||||||||
Series Monomoy Girl | Monomoy Girl | – | – | – | – | |||||||||||||
Series Moonbow 20 | Moonbow 20 | 117,545 | (172,000 | ) | (54,455 | ) | 8/30/2024 | |||||||||||
Series Motion Emotion | Motion Emotion | – | – | – | – | |||||||||||||
Series Mrs Whistler | Mrs Whistler | 85,080 | 233 | 85,313 | 12/31/2023 | |||||||||||||
Series My Fast One 20 | My Fast One 20 | 155,014 | (264,000 | ) | (108,986 | ) | 8/30/2024 | |||||||||||
Series Naismith | Naismith | (21,947 | ) | – | (21,947 | ) | – | |||||||||||
Series National Road | National Road | (7,943 | ) | – | (7,943 | ) | – | |||||||||||
Series Northern Smile 20 | Pep Rally | 16,595 | (12,200 | ) | 4,395 | 12/31/2022 | ||||||||||||
Series NY Exacta | NY Exacta | (16,622 | ) | – | (16,622 | ) | – | |||||||||||
Series Our Miss Jones 19 | Celebrity News | 41,641 | – | 41,641 | 6/30/2023 | |||||||||||||
Series Palace Foal | Palace Foal | (6,171 | ) | – | (6,171 | ) | – | |||||||||||
Series Popular Demand | Popular Demand | – | – | – | – | |||||||||||||
Series Power Up Paynter | Power Up Paynter | – | – | – | – | |||||||||||||
Series Queen Amira 19 | Regal Rebel | 91,028 | – | 91,028 | 12/31/2023 | |||||||||||||
Series Race Hunter 19 | Chasing Time | 63,694 | – | 63,694 | 9/30/2023 | |||||||||||||
Series Salute to America | Salute to America | 75,452 | – | 75,452 | 9/30/2023 | |||||||||||||
Series Sigesmund | Sigesmund | – | – | – | – | |||||||||||||
Series Silverpocketsfull 19 | Iron Works | 65,565 | – | 65,565 | 12/31/2023 | |||||||||||||
Series Social Dilemma | Social Dilemma | – | – | – | – | |||||||||||||
Series Song of Bernadette 20 | Cable Boss | 83,685 | – | 83,685 | 6/30/2024 | |||||||||||||
Series Speightstown Belle 19 | Ancient Royalty | – | – | – | – | |||||||||||||
Series Spirit 20 | Phantom Ride | 90,488 | – | 90,488 | 9/30/2024 | |||||||||||||
Series Squared Straight | Squared Straight | – | – | – | – | |||||||||||||
Series Stay Fabulous | Stay Fabulous | 127,323 | (248,000 | ) | (120,677 | ) | 9/30/2024 | |||||||||||
Series Storm Shooter | Storm Shooter | 21,356 | – | 21,356 | 9/30/2022 | |||||||||||||
Series Sunny 18 | Solar Strike | – | – | – | – |
27 |
Series Sunsanddrinkinhand | Sunsanddrinkinhand | 1,884 | – | 1,884 | 7/30/2022 | |||||||||||||
Series Sweet Sweet Annie 19 | In Due Time | (1,027 | ) | – | (1,027 | ) | – | |||||||||||
Series Tapitry 19 | Infinite Empire | 13,011 | – | 13,011 | 9/30/2022 | |||||||||||||
Series Tell All 19 | Walk the Talk | (2,636 | ) | – | (2,636 | ) | – | |||||||||||
Series Tell the Duchess 19 | Duke of Love | 69,151 | – | 69,151 | 9/30/2023 | |||||||||||||
Series The Filly Four | The Filly Four | 342,202 | – | 342,202 | 6/30/2022 | |||||||||||||
Series Thirteen Stripes | Thirteen Stripes | (544 | ) | – | (544 | ) | – | |||||||||||
Series Timeless Trick 20 | Interstellar | 12,416 | (27,000 | ) | (14,584 | ) | 12/31/2022 | |||||||||||
Series Tizamagician | Tizamagician | (14,982 | ) | – | (14,982 | ) | – | |||||||||||
Series Tufnel | Tufnel | 75,877 | (2,161 | ) | 73,716 | 6/30/2024 | ||||||||||||
Series Two Trail Sioux 17 | Annahilate | – | – | – | – | |||||||||||||
Series Two Trail Sioux 17K | Two Trail Sioux 17K | – | – | – | – | |||||||||||||
Series Vertical Threat | Vertical Threat | 49,981 | – | 49,981 | 6/30/2022 | |||||||||||||
Series Vow | Vow | 92,315 | – | 92,315 | 12/31/2023 | |||||||||||||
Series War Safe | War Safe | 89,296 | – | 89,296 | 9/30/2023 | |||||||||||||
Series Wayne O | Wayne O | – | – | – | – | |||||||||||||
Series Who Runs the World | Who Runs the World | 86,913 | (1,238 | ) | 85,675 | 12/31/2023 | ||||||||||||
Series Whosbeeninmybed 19 | Micro Share | 52,468 | – | 52,468 | 6/30/2023 | |||||||||||||
Series Without Delay 19 | Golden Quality | (53 | ) | – | (53 | ) | – | |||||||||||
Series Wonder Upon a Star 19 | Star Six Nine | – | – | – | – | |||||||||||||
Series Yes This Time | Yes This Time | 12,057 | – | 12,057 | 8/30/2022 | |||||||||||||
Series You Make Luvin Fun 19 | Magical Ways | 70,467 | (139,613 | ) | (69,146 | ) | 12/31/2023 | |||||||||||
Total | $ | 4,156,369 | $ | (2,346,020 | ) | $ | 1,810,349 |
The cash reserves for Operating Expenses, including Upkeep Fees, for each Series are estimated to last through the time period set forth in the table above. The purchase price of such Underlying Assets typically includes such reserves for Operating Expenses through at least through the time period set forth in the table above. In the Offerings, it is the intent of the Company to reserve Operating Expenses, including Upkeep Fees, at the outset of an offering sufficient to maintain the Underlying Asset without the need to raise additional capital for such series. The Company intends to rely on revenue generated from such Underlying Asset to provide ongoing working capital needed to fund the Operating Expenses of each such Series thereafter.
Series Interests
As of June 30, 2022, the Company raised a total of $32,776,352 in gross proceeds in exchange for series interests in various Underlying Assets (See our financial statements and “Note 6 – Members’ Equity” for more detail):
Series Name | Underlying Asset | Units Offered | Units Tendered | Subscription Amount | ||||||||||
Series Action Bundle | Action Bundle | 10,000 | 10,000 | $ | 310,000 | |||||||||
Series Adjust 20 | Jai Ho | 10 | 10 | $ | 135,000 | |||||||||
Series Amandrea | Amandrea | 550 | 550 | $ | 162,250 | |||||||||
Series Ambleside Park 19 | Lookwhogotlucky | 410 | 410 | $ | 84,050 | |||||||||
Series Apple Down Under 19 | Howboutdemapples | 600 | 600 | $ | 103,800 | |||||||||
Series Ari the Adventurer 19 | Kanthari | 5,100 | 5,100 | $ | 433,500 |
28 |
Series Athenian Beauty 19 | Quantum Theory | 1,800 | 1,800 | $ | 84,600 | |||||||||
Series Authentic | Authentic | 12,500 | 12,500 | $ | 2,575,000 | |||||||||
Series Awe Hush 19 | Can't Hush This | 1,800 | 1,800 | $ | 295,200 | |||||||||
Series Balletic | Balletic | 10,000 | 9,998 | $ | 799,840 | |||||||||
Series Bella Chica | Bella Chica | 100 | 100 | $ | 38,000 | |||||||||
Series Big Mel | Big Mel | 6,000 | 6,000 | $ | 726,000 | |||||||||
Series Black Escort 19 | Halofied | 20 | 20 | $ | 100,000 | |||||||||
Series Captain Sparrow | Captain Sparrow | 10 | 10 | $ | 112,000 | |||||||||
Series Carrothers | Carrothers | 5,100 | 5,100 | $ | 515,100 | |||||||||
Series Cayala 19 | Provocateur | 4,100 | 4,100 | $ | 373,100 | |||||||||
Series Chad Brown Bundle | Chad Brown Bundle | 5,000 | 5,000 | $ | 1,170,000 | |||||||||
Series Classic Cut | Classic Cut | 10,000 | 10,000 | $ | 510,000 | |||||||||
Series Classofsixtythree 19 | Sixtythreecaliber | 1,000 | 1,000 | $ | 193,000 | |||||||||
Series Co Cola 19 | Search Engine | 5,100 | 5,100 | $ | 540,600 | |||||||||
Series Collusion Illusion | Collusion Illusion | 25,000 | 25,000 | $ | 750,000 | |||||||||
Series Consecrate 19 | Sacred Beauty | 410 | 410 | $ | 64,370 | |||||||||
Series Courtisane 19 | Tap the Gavel | 10,000 | 10,000 | $ | 490,000 | |||||||||
Series Cuvier | Cuvier | 1,250 | – | $ | – | |||||||||
Series Daddys Joy | Daddy's Joy | 600 | 600 | $ | 108,000 | |||||||||
Series Dancing Crane | Dancing Crane | 20 | 20 | $ | 122,000 | |||||||||
Series Daring Dancer 20 | Boppy | 750 | 750 | $ | 101,250 | |||||||||
Series Deep Cover | Deep Cover | 800 | 800 | $ | 176,000 | |||||||||
Series Demogorgon | Demogorgon | 20 | 20 | $ | 128,000 | |||||||||
Series Desire Street 19 | Always Hopeful | 1,020 | 1,020 | $ | 205,020 | |||||||||
Series Echo Warrior 19 | Hero Status | 6,000 | 6,000 | $ | 348,000 | |||||||||
Series Edge Racing Summer Fun-d | Edge Racing Summer Fun-d | 50 | 14 | $ | 70,000 | |||||||||
Series Escape Route | Escape Route | 10 | 10 | $ | 62,952 | |||||||||
Series Essential Rose 20 | Rosie's Alibi | 10,000 | 10,000 | $ | 1,050,000 | |||||||||
Series Exonerated 19 | Above Suspicion | 820 | 820 | $ | 138,580 | |||||||||
Series Fenwick Hall 20 | Inspector | 1,200 | 1,200 | $ | 242,400 | |||||||||
Series Flora Dora 20 | Spun Intended | 10 | 10 | $ | 100,000 | |||||||||
Series Forever Rose | Forever Rose | 1,250 | – | $ | – | |||||||||
Series Frosted Oats | Frosted Oats | 4,100 | 4,100 | $ | 172,200 | |||||||||
Series Future Stars Stable | Future Stars Stable | 10,000 | 10,000 | $ | 500,000 | |||||||||
Series Gentleman Gerry | Gentleman Gerry | 20 | 19 | $ | 139,500 | |||||||||
Series Going to Vegas | Going to Vegas | 5,100 | 5,100 | $ | 438,600 | |||||||||
Series Got Stormy | Got Stormy | 5,100 | 5,100 | $ | 229,500 | |||||||||
Series Grand Traverse Bay 19 | Cornice Traverse | 750 | 750 | $ | 335,250 | |||||||||
Series Grand Traverse Bay 20 | Sun Valley Road | 750 | 751 | $ | 90,871 | |||||||||
Series Helicopter Money | Helicopter Money | 3,000 | – | $ | – |
29 |
Series Im A Looker 20 | I'm a Looker 20 | 4,000 | – | $ | – | |||||||||
Series Into Summer 19 | Malibu Mayhem | 650 | 650 | $ | 250,900 | |||||||||
Series Just Louise 19 | Forbidden Kingdom | 1,020 | 1,020 | $ | 233,580 | |||||||||
Series Keertana 18 | American Heiress | 5,100 | 5,100 | $ | 510,000 | |||||||||
Series Kichiro | Kichiro | 200 | 200 | $ | 26,000 | |||||||||
Series Lane Way | Lane Way | 6,000 | 6,000 | $ | 540,000 | |||||||||
Series Latte Da 19 | Inalattetrouble | 4,100 | 4,100 | $ | 143,500 | |||||||||
Series Lazy Daisy | Lazy Daisy | 1,250 | 1,250 | $ | 143,750 | |||||||||
Series Le Relais 20 | Show Your Cards | 3,000 | 2,331 | $ | 384,615 | |||||||||
Series Lost Empire 19 | Laforgia | 10,200 | 10,200 | $ | 357,000 | |||||||||
Series Madeira Wine | Madeira Wine | 20 | 20 | $ | 50,000 | |||||||||
Series Man Among Men | Man Among Men | 820 | 820 | $ | 223,860 | |||||||||
Series Margaret Reay 19 | A Mo Reay | 820 | 820 | $ | 246,820 | |||||||||
Series Margarita Friday 19 | Straight No Chaser | 2,000 | 1,994 | $ | 331,004 | |||||||||
Series Martita Sangrita 17 | Carpe Vinum | 600 | 600 | $ | 192,000 | |||||||||
Series Mayan Milagra 19 | Tepeu | 20 | 20 | $ | 170,000 | |||||||||
Series Midnight Sweetie 19 | Dolce Notte | 820 | 820 | $ | 121,360 | |||||||||
Series Miss Puzzle | Miss Tapit | 125 | 125 | $ | 31,250 | |||||||||
Series Miss Sakamoto | Miss Sakamoto | 6,000 | 6,001 | $ | 324,054 | |||||||||
Series Mo Mischief | Mo Mischief | 5,100 | 5,100 | $ | 382,500 | |||||||||
Series Mo Temptation | Mo Temptation | 3,500 | – | $ | – | |||||||||
Series Monomoy Girl | Monomoy Girl | 10,200 | 10,200 | $ | 469,200 | |||||||||
Series Moonbow 20 | Moonbow 20 | 2,500 | – | $ | – | |||||||||
Series Motion Emotion | Motion Emotion | 1,020 | 1,020 | $ | 85,680 | |||||||||
Series Mrs Whistler | Mrs Whistler | 2,000 | 2,002 | $ | 274,274 | |||||||||
Series My Fast One 20 | My Fast One 20 | 2,000 | – | $ | – | |||||||||
Series Naismith | Naismith | 2,000 | 2,000 | $ | 304,000 | |||||||||
Series National Road | National Road | 20 | 20 | $ | 140,000 | |||||||||
Series Northern Smile 20 | Pep Rally | 20 | 18 | $ | 126,000 | |||||||||
Series NY Exacta | NY Exacta | 2,000 | 2,000 | $ | 456,000 | |||||||||
Series Our Miss Jones 19 | Celebrity News | 1,200 | 1,200 | $ | 187,200 | |||||||||
Series Palace Foal | Palace Foal | 510 | – | $ | – | |||||||||
Series Popular Demand | Popular Demand | 1,020 | 1,020 | $ | 248,880 | |||||||||
Series Power Up Paynter | Power Up Paynter | 600 | 600 | $ | 114,000 | |||||||||
Series Queen Amira 19 | Regal Rebel | 2,000 | 2,000 | $ | 330,000 | |||||||||
Series Race Hunter 19 | Chasing Time | 10,000 | 10,000 | $ | 520,000 | |||||||||
Series Salute to America | Salute to America | 1,000 | 1,000 | $ | 273,000 | |||||||||
Series Sigesmund | Sigesmund | 200 | 200 | $ | 20,000 | |||||||||
Series Silverpocketsfull 19 | Iron Works | 5,100 | 5,100 | $ | 453,900 | |||||||||
Series Social Dilemma | Social Dilemma | 510 | 510 | $ | 85,170 | |||||||||
Series Song of Bernadette 20 | Cable Boss | 5,100 | 5,100 | $ | 494,700 | |||||||||
Series Speightstown Belle 19 | Ancient Royalty | 900 | 900 | $ | 125,100 |
30 |
Series Spirit 20 | Phantom Ride | 3,000 | 3,000 | $ | 252,000 | |||||||||
Series Squared Straight | Squared Straight | 150 | 150 | $ | 40,500 | |||||||||
Series Stay Fabulous | Stay Fabulous | 2,500 | – | $ | – | |||||||||
Series Storm Shooter | Storm Shooter | 2,000 | 2,000 | $ | 324,000 | |||||||||
Series Sunny 18 | Solar Strike | 6,000 | 6,000 | $ | 390,000 | |||||||||
Series Sunsanddrinkinhand | Sunsanddrinkinhand | 20 | 20 | $ | 100,000 | |||||||||
Series Sweet Sweet Annie 19 | In Due Time | 20 | 20 | $ | 150,000 | |||||||||
Series Tapitry 19 | Infinite Empire | 820 | 820 | $ | 223,860 | |||||||||
Series Tell All 19 | Walk the Talk | 12 | 12 | $ | 126,000 | |||||||||
Series Tell the Duchess 19 | Duke of Love | 2,000 | 2,000 | $ | 284,000 | |||||||||
Series The Filly Four | The Filly Four | 8,000 | 8,000 | $ | 1,440,000 | |||||||||
Series Thirteen Stripes | Thirteen Stripes | 1,000 | 1,000 | $ | 229,000 | |||||||||
Series Timeless Trick 20 | Interstellar | 12 | 8 | $ | 62,000 | |||||||||
Series Tizamagician | Tizamagician | 600 | 600 | $ | 192,000 | |||||||||
Series Tufnel | Tufnel | 5,200 | 5,159 | $ | 319,858 | |||||||||
Series Two Trail Sioux 17 | Annahilate | 450 | 450 | $ | 135,000 | |||||||||
Series Two Trail Sioux 17K | Two Trail Sioux 17K | 1 | 1 | $ | 29,720 | |||||||||
Series Vertical Threat | Vertical Threat | 600 | 600 | $ | 126,000 | |||||||||
Series Vow | Vow | 2,000 | 2,000 | $ | 358,000 | |||||||||
Series War Safe | War Safe | 2,000 | 2,000 | $ | 292,000 | |||||||||
Series Wayne O | Wayne O | 6,000 | 6,000 | $ | 570,000 | |||||||||
Series Who Runs the World | Who Runs the World | 5,100 | 5,086 | $ | 528,944 | |||||||||
Series Whosbeeninmybed 19 | Micro Share | 5,100 | 5,100 | $ | 377,400 | |||||||||
Series Without Delay 19 | Golden Quality | 20 | 20 | $ | 140,000 | |||||||||
Series Wonder Upon a Star 19 | Star Six Nine | 10,000 | 10,000 | $ | 370,000 | |||||||||
Series Yes This Time | Yes This Time | 10 | 10 | $ | 129,520 | |||||||||
Series You Make Luvin Fun 19 | Magical Ways | 6,000 | 3,810 | $ | 285,750 | |||||||||
MRH Retired Series | MRH Retired Series | 2,755 | 2,755 | $ | 603,050 | |||||||||
Totals | 343,845 | 320,374 | $ | 32,771,432 |
(1) | Owned 100% by the Manager due to conversion of profit participation convertible promissory notes. |
Advances From Manager
To fund its organizational and start-up activities as well as to advance funds on behalf of a series to purchase horse assets, the Manager has covered the expenses and costs of the Company and its series thus far on a non-interest-bearing extension of revolving credit. The Company will evaluate when is best to repay the Manager depending on operations and fundraising ability. In general, the Company will repay the Manager for funds extended to acquire horse assets from the series subscription proceeds (less the applicable management fee), as they are received.
Additionally, the Manager maintains cash reserves on behalf of each of the series of the Company to cover expenses of the series’ operations (See Note 4).
31 |
Related Party Transactions
The Company’s Manager has advanced funds to and holds cash reserves on behalf of various of the Company’s series funds. See Note 4, Note 5, and Note 7 to Financial Statements as of June 30, 2022 for further discussions. Additionally, the Manager maintains cash reserves on behalf of each of the series of the Company to cover expenses of the series’ operations.
Series Cash Reserves
During the six-month period ended June 30, 2022, the Company had a total of $4,156,369 in reserve held by the Manager for each series of an Underlying Asset as outlined below. In addition, the Manager is owed $2,346,020 for acquisition loans made by the Manager as outlined below.
As of June 30, 2022, the Company’s positions of reserve funds and borrowings are as follows:
Series Name | Underlying Asset | Horse reserve account owed to/(by) Series | (Horse acquisition loans owed to Manager) | Net amount owed to/(by) Series | ||||||||||
Series Action Bundle | Action Bundle | $ | – | $ | – | – | ||||||||
Series Adjust 20 | Jai Ho | 21,576 | – | 21,576 | ||||||||||
Series Amandrea | Amandrea | – | – | – | ||||||||||
Series Ambleside Park 19 | Lookwhogotlucky | 8,869 | – | 8,869 | ||||||||||
Series Apple Down Under 19 | Howboutdemapples | – | – | – | ||||||||||
Series Ari the Adventurer 19 | Kanthari | 25,720 | – | 25,720 | ||||||||||
Series Athenian Beauty 19 | Quantum Theory | – | – | – | ||||||||||
Series Authentic | Authentic | (348,243 | ) | – | (348,243 | ) | ||||||||
Series Awe Hush 19 | Can't Hush This | 21,480 | – | 21,480 | ||||||||||
Series Balletic | Balletic | 141,463 | (136 | ) | 141,327 | |||||||||
Series Bella Chica | Bella Chica | – | – | – | ||||||||||
Series Big Mel | Big Mel | – | – | – | ||||||||||
Series Black Escort 19 | Halofied | (602 | ) | – | (602 | ) | ||||||||
Series Captain Sparrow | Captain Sparrow | 20,705 | – | 20,705 | ||||||||||
Series Carrothers | Carrothers | 30,523 | – | 30,523 | ||||||||||
Series Cayala 19 | Provocateur | 36,417 | – | 36,417 | ||||||||||
Series Chad Brown Bundle | Chad Brown Bundle | 252,128 | – | 252,128 | ||||||||||
Series Classic Cut | Classic Cut | 125,756 | – | 125,756 | ||||||||||
Series Classofsixtythree 19 | Sixtythreecaliber | 15,978 | – | 15,978 | ||||||||||
Series Co Cola 19 | Search Engine | 61,660 | – | 61,660 | ||||||||||
Series Collusion Illusion | Collusion Illusion | – | – | – | ||||||||||
Series Consecrate 19 | Sacred Beauty | – | – | – | ||||||||||
Series Courtisane 19 | Tap the Gavel | 78,961 | – | 78,961 | ||||||||||
Series Cuvier | Cuvier | 83,755 | (160,000 | ) | (76,245 | ) | ||||||||
Series Daddys Joy | Daddy's Joy | (24,601 | ) | – | (24,601 | ) | ||||||||
Series Dancing Crane | Dancing Crane | 303 | – | 303 |
32 |
Series Daring Dancer 20 | Boppy | 27,605 | – | 27,605 | ||||||||||
Series De Mystique 17 | Dancing Destroyer | – | – | – | ||||||||||
Series Deep Cover | Deep Cover | 13,607 | – | 13,607 | ||||||||||
Series Demogorgon | Demogorgon | 970 | – | 970 | ||||||||||
Series Desire Street 19 | Always Hopeful | 44,684 | – | 44,684 | ||||||||||
Series Echo Warrior 19 | Hero Status | 68,425 | – | 68,425 | ||||||||||
Series Edge Racing Summer Fun-d | Edge Racing Summer Fun-d | 176,768 | (162,000 | ) | 14,768 | |||||||||
Series Escape Route | Escape Route | 6,617 | – | 6,617 | ||||||||||
Series Essential Rose 20 | Rosie's Alibi | 152,333 | – | 152,333 | ||||||||||
Series Exonerated 19 | Above Suspicion | 10,399 | – | 10,399 | ||||||||||
Series Fenwick Hall 20 | Inspector | 89,149 | – | 89,149 | ||||||||||
Series Flora Dora 20 | Spun Intended | 16,248 | – | 16,248 | ||||||||||
Series Forever Rose | Forever Rose | 57,426 | (187,000 | ) | (129,574 | ) | ||||||||
Series Frosted Oats | Frosted Oats | 22,354 | – | 22,354 | ||||||||||
Series Future Stars Stable | Future Stars Stable | 63,533 | – | 63,533 | ||||||||||
Series Gentleman Gerry | Gentleman Gerry | 26,290 | (13,500 | ) | 12,790 | |||||||||
Series Going to Vegas | Going to Vegas | 13,919 | – | 13,919 | ||||||||||
Series Got Stormy | Got Stormy | – | – | – | ||||||||||
Series Grand Traverse Bay 19 | Cornice Traverse | 60,971 | – | 60,971 | ||||||||||
Series Grand Traverse Bay 20 | Sun Valley Road | 26,549 | 103 | 26,652 | ||||||||||
Series Helicopter Money | Helicopter Money | 118,014 | (160,800 | ) | (42,786 | ) | ||||||||
Series Im A Looker 20 | I'm a Looker 20 | 195,474 | (464,000 | ) | (268,526 | ) | ||||||||
Series Into Summer 19 | Malibu Mayhem | 63,371 | – | 63,371 | ||||||||||
Series Just Louise 19 | Forbidden Kingdom | 1,589 | – | 1,589 | ||||||||||
Series Keertana 18 | American Heiress | – | – | – | ||||||||||
Series Kichiro | Kichiro | – | – | – | ||||||||||
Series Lane Way | Lane Way | (46,458 | ) | – | (46,458 | ) | ||||||||
Series Latte Da 19 | Inalattetrouble | 16,269 | – | 16,269 | ||||||||||
Series Lazy Daisy | Lazy Daisy | – | – | – | ||||||||||
Series Le Relais 20 | Show Your Cards | 126,535 | (88,308 | ) | 38,227 | |||||||||
Series Lost Empire 19 | Laforgia | 32,823 | – | 32,823 | ||||||||||
Series Madeira Wine | Madeira Wine | – | – | – | ||||||||||
Series Man Among Men | Man Among Men | 13,077 | – | 13,077 | ||||||||||
Series Margaret Reay 19 | A Mo Reay | 13,907 | – | 13,907 | ||||||||||
Series Margarita Friday 19 | Straight No Chaser | 105,006 | (847 | ) | 104,160 | |||||||||
Series Martita Sangrita 17 | Carpe Vinum | (33,060 | ) | – | (33,060 | ) | ||||||||
Series Mayan Milagra 19 | Tepeu | (6,571 | ) | – | (6,571 | ) | ||||||||
Series Midnight Sweetie 19 | Dolce Notte | 9,945 | – | 9,945 | ||||||||||
Series Miss Puzzle | Miss Tapit | – | – | – | ||||||||||
Series Miss Sakamoto | Miss Sakamoto | 61,008 | 46 | 61,054 | ||||||||||
Series Mo Mischief | Mo Mischief | – | – | – | ||||||||||
Series Mo Temptation | Mo Temptation | 125,169 | (243,600 | ) | (118,431 | ) |
33 |
Series Monomoy Girl | Monomoy Girl | – | – | – | ||||||||||
Series Moonbow 20 | Moonbow 20 | 117,545 | (172,000 | ) | (54,455 | ) | ||||||||
Series Motion Emotion | Motion Emotion | – | – | – | ||||||||||
Series Mrs Whistler | Mrs Whistler | 85,080 | 233 | 85,313 | ||||||||||
Series My Fast One 20 | My Fast One 20 | 155,014 | (264,000 | ) | (108,986 | ) | ||||||||
Series Naismith | Naismith | (21,947 | ) | – | (21,947 | ) | ||||||||
Series National Road | National Road | (7,943 | ) | – | (7,943 | ) | ||||||||
Series Northern Smile 20 | Pep Rally | 16,595 | (12,200 | ) | 4,395 | |||||||||
Series NY Exacta | NY Exacta | (16,622 | ) | – | (16,622 | ) | ||||||||
Series Our Miss Jones 19 | Celebrity News | 41,641 | – | 41,641 | ||||||||||
Series Palace Foal | Palace Foal | (6,171 | ) | – | (6,171 | ) | ||||||||
Series Popular Demand | Popular Demand | – | – | – | ||||||||||
Series Power Up Paynter | Power Up Paynter | – | – | – | ||||||||||
Series Queen Amira 19 | Regal Rebel | 91,028 | – | 91,028 | ||||||||||
Series Race Hunter 19 | Chasing Time | 63,694 | – | 63,694 | ||||||||||
Series Salute to America | Salute to America | 75,452 | – | 75,452 | ||||||||||
Series Sigesmund | Sigesmund | – | – | – | ||||||||||
Series Silverpocketsfull 19 | Iron Works | 65,565 | – | 65,565 | ||||||||||
Series Social Dilemma | Social Dilemma | – | – | – | ||||||||||
Series Song of Bernadette 20 | Cable Boss | 83,685 | – | 83,685 | ||||||||||
Series Speightstown Belle 19 | Ancient Royalty | – | – | – | ||||||||||
Series Spirit 20 | Phantom Ride | 90,488 | – | 90,488 | ||||||||||
Series Squared Straight | Squared Straight | – | – | – | ||||||||||
Series Stay Fabulous | Stay Fabulous | 127,323 | (248,000 | ) | (120,677 | ) | ||||||||
Series Storm Shooter | Storm Shooter | 21,356 | – | 21,356 | ||||||||||
Series Sunny 18 | Solar Strike | – | – | – | ||||||||||
Series Sunsanddrinkinhand | Sunsanddrinkinhand | 1,884 | – | 1,884 | ||||||||||
Series Sweet Sweet Annie 19 | In Due Time | (1,027 | ) | – | (1,027 | ) | ||||||||
Series Tapitry 19 | Infinite Empire | 13,011 | – | 13,011 | ||||||||||
Series Tell All 19 | Walk the Talk | (2,636 | ) | – | (2,636 | ) | ||||||||
Series Tell the Duchess 19 | Duke of Love | 69,151 | – | 69,151 | ||||||||||
Series The Filly Four | The Filly Four | 342,202 | – | 342,202 | ||||||||||
Series Thirteen Stripes | Thirteen Stripes | (544 | ) | – | (544 | ) | ||||||||
Series Timeless Trick 20 | Interstellar | 12,416 | (27,000 | ) | (14,584 | ) | ||||||||
Series Tizamagician | Tizamagician | (14,982 | ) | – | (14,982 | ) | ||||||||
Series Tufnel | Tufnel | 75,877 | (2,161 | ) | 73,716 | |||||||||
Series Two Trail Sioux 17 | Annahilate | – | – | – | ||||||||||
Series Two Trail Sioux 17K | Two Trail Sioux 17K | – | – | – | ||||||||||
Series Vertical Threat | Vertical Threat | 49,981 | – | 49,981 | ||||||||||
Series Vow | Vow | 92,315 | – | 92,315 | ||||||||||
Series War Safe | War Safe | 89,296 | – | 89,296 | ||||||||||
Series Wayne O | Wayne O | – | – | – |
34 |
Series Who Runs the World | Who Runs the World | 86,913 | (1,238 | ) | 85,675 | |||||||||
Series Whosbeeninmybed 19 | Micro Share | 52,468 | – | 52,468 | ||||||||||
Series Without Delay 19 | Golden Quality | (53 | ) | – | (53 | ) | ||||||||
Series Wonder Upon a Star 19 | Star Six Nine | – | – | – | ||||||||||
Series Yes This Time | Yes This Time | 12,057 | – | 12,057 | ||||||||||
Series You Make Luvin Fun 19 | Magical Ways | 70,467 | (139,613 | ) | (69,146 | ) | ||||||||
Total | $ | 4,156,369 | $ | (2,346,020 | ) | $ | 1,810,349 |
In order to fund the Company’s activities as well as to advance funds on behalf of a Series in order to acquire an Underlying Asset prior to establishing and issuing securities in the Series for holding such Underlying Asset, the Company has borrowed a total of $30,181,498 as of June 30, 2022, from the Manager in the form of profit participation convertible promissory notes as follows:
Series Name | Underlying Asset | Principal Borrowed from Manager (1) | ||||
Series Action Bundle (1) | Action Bundle | $ | 263,500 | |||
Series Adjust 20 | Jai Ho | 115,706 | ||||
Series Amandrea | Amandrea | 137,500 | ||||
Series Ambleside Park 19 | Lookwhogotlucky | 71,443 | ||||
Series Apple Down Under 19 | Howboutdemapples | 88,230 | ||||
Series Ari the Adventurer 19 | Kanthari | 368,475 | ||||
Series Athenian Beauty 19 | Quantum Theory | 71,910 | ||||
Series Authentic | Authentic | 2,188,750 | ||||
Series Awe Hush 19 | Can't Hush This | 250,920 | ||||
Series Balletic | Balletic | 680,000 | ||||
Series Bella Chica | Bella Chica | 32,300 | ||||
Series Big Mel | Big Mel | 617,100 | ||||
Series Black Escort 19 | Halofied | 88,200 | ||||
Series Captain Sparrow | Captain Sparrow | 96,565 | ||||
Series Carrothers | Carrothers | 437,835 | ||||
Series Cayala 19 | Provocateur | 317,135 | ||||
Series Chad Brown Bundle | Chad Brown Bundle | 994,500 | ||||
Series Classic Cut | Classic Cut | 433,500 | ||||
Series Classofsixtythree 19 | Sixtythreecaliber | 164,050 | ||||
Series Co Cola 19 | Search Engine | 459,510 | ||||
Series Collusion Illusion | Collusion Illusion | 637,500 | ||||
Series Consecrate 19 | Sacred Beauty | 54,715 | ||||
Series Courtisane 19 | Tap the Gavel | 416,500 | ||||
Series Cuvier | Cuvier | 160,000 | ||||
Series Daddys Joy | Daddy's Joy | 91,800 | ||||
Series Dancing Crane | Dancing Crane | 103,520 | ||||
Series Daring Dancer 20 | Boppy | 86,063 | ||||
Series De Mystique 17 | Dancing Destroyer | 30,228 |
35 |
Series Deep Cover | Deep Cover | 149,600 | ||||
Series Demogorgon | Demogorgon | 108,340 | ||||
Series Desire Street 19 | Always Hopeful | 174,267 | ||||
Series Echo Warrior 19 | Hero Status | 295,800 | ||||
Series Edge Racing Summer Fun-d | Edge Racing Summer Fun-d | 225,000 | ||||
Series Escape Route | Escape Route | 52,560 | ||||
Series Essential Rose 20 | Rosie's Alibi | 892,500 | ||||
Series Exonerated 19 | Above Suspicion | 117,793 | ||||
Series Fenwick Hall 20 | Inspector | 193,920 | ||||
Series Flora Dora 20 | Spun Intended | 86,218 | ||||
Series Forever Rose | Forever Rose | 187,000 | ||||
Series Frosted Oats | Frosted Oats | 146,370 | ||||
Series Future Stars Stable | Future Stars Stable | 425,000 | ||||
Series Gentleman Gerry | Gentleman Gerry | 135,000 | ||||
Series Going to Vegas | Going to Vegas | 372,810 | ||||
Series Got Stormy | Got Stormy | 195,075 | ||||
Series Grand Traverse Bay 19 | Cornice Traverse | 284,963 | ||||
Series Grand Traverse Bay 20 | Sun Valley Road | 72,600 | ||||
Series Helicopter Money | Helicopter Money | 160,800 | ||||
Series Im A Looker 20 | I'm a Looker 20 | 464,000 | ||||
Series Into Summer 19 | Malibu Mayhem | 213,265 | ||||
Series Just Louise 19 | Forbidden Kingdom | 198,543 | ||||
Series Keertana 18 | American Heiress | 433,500 | ||||
Series Kichiro | Kichiro | 22,000 | ||||
Series Lane Way | Lane Way | 459,000 | ||||
Series Latte Da 19 | Inalattetrouble | 121,975 | ||||
Series Lazy Daisy | Lazy Daisy | 121,250 | ||||
Series Le Relais 20 | Show Your Cards | 396,000 | ||||
Series Lost Empire 19 | Laforgia | 303,450 | ||||
Series Madeira Wine | Madeira Wine | 42,510 | ||||
Series Man Among Men | Man Among Men | 190,281 | ||||
Series Margaret Reay 19 | A Mo Reay | 209,797 | ||||
Series Margarita Friday 19 | Straight No Chaser | 282,200 | ||||
Series Martita Sangrita 17 | Carpe Vinum | 163,200 | ||||
Series Mayan Milagra 19 | Tepeu | 146,920 | ||||
Series Midnight Sweetie 19 | Dolce Notte | 103,156 | ||||
Series Miss Puzzle | Miss Tapit | 26,500 | ||||
Series Miss Sakamoto | Miss Sakamoto | 275,400 | ||||
Series Mo Mischief | Mo Mischief | 326,400 | ||||
Series Mo Temptation | Mo Temptation | 243,600 | ||||
Series Monomoy Girl | Monomoy Girl | 398,820 | ||||
Series Moonbow 20 | Moonbow 20 | 172,000 |
36 |
Series Motion Emotion (2) | Motion Emotion | 72,828 | ||||
Series Mrs Whistler | Mrs Whistler | 232,900 | ||||
Series My Fast One 20 | My Fast One 20 | 264,000 | ||||
Series Naismith | Naismith | 258,400 | ||||
Series National Road | National Road | 120,000 | ||||
Series Northern Smile 20 | Pep Rally | 122,000 | ||||
Series NY Exacta | NY Exacta | 387,600 | ||||
Series Our Miss Jones 19 | Celebrity News | 161,160 | ||||
Series Palace Foal | Palace Foal | – | ||||
Series Popular Demand | Popular Demand | 212,160 | ||||
Series Power Up Paynter | Power Up Paynter | 96,600 | ||||
Series Queen Amira 19 | Regal Rebel | 280,500 | ||||
Series Race Hunter 19 | Chasing Time | 442,000 | ||||
Series Salute to America | Salute to America | 232,050 | ||||
Series Sigesmund | Sigesmund | 17,000 | ||||
Series Silverpocketsfull 19 | Iron Works | 385,815 | ||||
Series Social Dilemma | Social Dilemma | 72,395 | ||||
Series Song of Bernadette 20 | Cable Boss | 420,495 | ||||
Series Speightstown Belle 19 | Ancient Royalty | 106,335 | ||||
Series Spirit 20 | Phantom Ride | 201,600 | ||||
Series Squared Straight | Squared Straight | 34,350 | ||||
Series Stay Fabulous | Stay Fabulous | 248,000 | ||||
Series Storm Shooter | Storm Shooter | 276,000 | ||||
Series Sunny 18 | Solar Strike | 329,940 | ||||
Series Sunsanddrinkinhand | Sunsanddrinkinhand | 85,622 | ||||
Series Sweet Sweet Annie 19 | In Due Time | 129,780 | ||||
Series Tapitry 19 | Infinite Empire | 190,281 | ||||
Series Tell All 19 | Walk the Talk | 107,844 | ||||
Series Tell the Duchess 19 | Duke of Love | 241,400 | ||||
Series The Filly Four | The Filly Four | 1,224,000 | ||||
Series Thirteen Stripes | Thirteen Stripes | 194,650 | ||||
Series Timeless Trick 20 | Interstellar | 81,000 | ||||
Series Tizamagician | Tizamagician | 163,200 | ||||
Series Tufnel | Tufnel | 274,040 | ||||
Series Two Trail Sioux 17 | Annahilate | 114,750 | ||||
Series Two Trail Sioux 17K | Two Trail Sioux 17K | 28,234 | ||||
Series Vertical Threat | Vertical Threat | 107,100 | ||||
Series Vow | Vow | 304,300 | ||||
Series War Safe | War Safe | 248,200 | ||||
Series Wayne O | Wayne O | 486,000 | ||||
Series Who Runs the World | Who Runs the World | 450,840 | ||||
Series Whosbeeninmybed 19 | Micro Share | 320,790 |
37 |
Series Without Delay 19 | Golden Quality | 121,000 | ||||
Series Wonder Upon a Star 19 | Star Six Nine | 314,500 | ||||
Series Yes This Time | Yes This Time | 107,930 | ||||
Series You Make Luvin Fun 19 | Magical Ways | 382,500 | ||||
MRH Retired Series 4 | MRH Retired Series | 482,573 | ||||
Totals | $ | 30,181,498 |
(1) | On April 2, 2021, the Series Action Bundle Offering was terminated prior to any securities being offered. The Manager converted its profit participation convertible promissory note into 100% ownership in the series. |
(2) | On April 2, 2021, the Series Motion Emotion Offering was terminated prior to any securities being offered. The Manager converted its profit participation convertible promissory note into 100% ownership in the series. |
(3) | The Company converted an advance from founders outstanding as of December 31, 2017 to equity in the Company to ease the cash flow burden to the Company during 2018. (4) MRH Retired Series - MRH Palace Foal |
As of June 30, 2022 the Company owes the following to related parties:
- $1,911,113 to Spendthrift in connection with Series Authentic associated with the “kicker” balance due.
- $75,000.00 to the Manager in connection with Series Authentic.
The Company acquired the horse asset in Series Palace Foal via a $15,606 convertible profit participating loan from Michael Behrens, a principal of the Manager of the Company. The profit participation convertible promissory note bears a 2.38 percent per annum interest rate and is due either when Series Palace Foal is fully subscribed or converted into the unsold units of Series Palace Foal. During the time the profit participation convertible promissory note is outstanding, the underlying cash flow of Series Palace Foal series accrues to the loan holder.
On March 17, 2020, an affiliate of Spendthrift became a majority stockholder in Experiential Squared, Inc., the Manager of the Company. Spendthrift is also a Horse Seller and Co-Owner with the Company in several of the Underlying Assets of existing Series and will likely continue to hold those positions in future Series.
Because these are related party transactions, no guarantee can be made that the terms of the arrangements are at arm’s length.
Trend Information
The Company’s main focus over the next twelve months is to continue to launch subsequent Offerings of Series Interests. The table below shows the launched and closed Offerings for the year as of June 30, 2022:
# of Offerings Launched | # of Offerings Closed | |
As of June 30, 2022 | 23 | 26 |
(1) data represents number of Offerings for Series Interests of each state of offering process in the given period.
(2) offerings launched as of June 30, 2022 either through (i) a Regulation A offering or (ii) a Regulation D offering.
38 |
The Company plans to launch approximately 25 to 50 additional offerings in the next twelve months, as of the date of this filing, including offerings for increasingly higher value underlying assets. The Company will commence such offerings within two calendar days of qualification with the SEC as provided in Rule 251(d)(3)(i)(F). The proceeds from any offerings closed during the next twelve months will be used to acquire additional race horses. We believe that launching a larger number of offerings in 2022-2023 and beyond will help us from a number of perspectives:
1) Continue to grow the user base on the Platform by attracting more Investors into our ecosystem.
2) Enable the Company to reduce operating expenses for each series, as we negotiate better contracts for training, upkeep, insurance and other operating expenses with a larger collection of underlying assets.
3) Attract a larger community of Horse Sellers with high quality underlying assets to the Platform who may view us as a more efficient method of transacting than the traditional syndication processes.
In addition to more offerings, we also intend to continue to develop Membership Experience Programs, which allow Investors to enjoy the collection of racehorses acquired and managed by the Company through events, race day visits and other programs.
Outside of the trends mentioned above, we believe that the Company is also dependent on the general economic environment and investing climate, the horse racing industry at large (including ongoing concerns of horse safety), in particular in the United States. In addition, since we are reliant on our Manager to support the Company and the Series, we are dependent on the general fundraising environment and our Manager’s continued ability to raise capital.
Off-Balance Sheet Arrangements
As of June 30, 2022, we did not have any off-balance sheet arrangements.
Critical Accounting Policies
The preparation of financial statements in accordance with GAAP requires management to use judgement in the application of accounting policies, including making estimates and assumptions. These assumptions will affect the reported amounts of assets and liabilities and our disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. With different estimates or assumptions, materially different amounts could be reported in our financial statements. Additionally, other companies may utilize different estimates that may impact the comparability of our results of operations to those of companies in similar businesses.
Please refer to “Note 2 — Summary of Significant Accounting Policies” to our financial statements included in this Semiannual Report for more discussion of our accounting policies and procedures.
We have no information to disclose that was required to be in a report on Form 1-U during the semiannual period covered by this Form 1-SA, but was not reported.
39 |
FINANCIAL STATEMENTS (UNAUDITED) AS OF JUNE 30, 2022 AND DECEMBER 31, 2021, AND FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2022 AND 2021:
40 |
MY RACEHORSE CA LLC
As of June 30, 2022 and December 31, 2021
30-Jun-22 | 31-Dec-21 | |||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | – | $ | – | ||||
Accounts receivable | 4,232 | – | ||||||
Horse reserve funds receivable from Manager (see Note 4) | 4,156,357 | 3,668,322 | ||||||
Prepaid expense | 140,760 | 129,722 | ||||||
Total Current Assets | 4,301,349 | 3,798,044 | ||||||
Non-Current Assets: | ||||||||
Horse assets, net of accumulated depreciation (see Note 2) | 9,309,506 | 10,897,198 | ||||||
Total Non-Current Assets | 9,309,506 | 10,897,198 | ||||||
TOTAL ASSETS | $ | 13,610,855 | $ | 14,695,242 | ||||
LIABILITIES AND MEMBERS' EQUITY | ||||||||
Liabilities: | ||||||||
Current Liabilities: | ||||||||
Acquisition advances payable to Manager (see Note 4) | $ | 2,346,020 | $ | 3,764,514 | ||||
Accrued expense | 99,532 | 60,302 | ||||||
Interest payable | 23 | 46,956 | ||||||
Total Current Liabilities | 2,445,575 | 3,871,772 | ||||||
Long-term Liabilities: | ||||||||
Long-term debt - related party | 2,771,624 | 3,022,807 | ||||||
Total Long-term Liabilities | 2,771,624 | 3,022,807 | ||||||
Total Liabilities | 5,217,199 | 6,894,579 | ||||||
Members' Equity: | ||||||||
Membership in My Racehorse CA, LLC | 571,046 | 324,928 | ||||||
Subscriptions in series, net of distributions (See Note 6) | 29,245,114 | 24,572,224 | ||||||
Accumulated deficit | (21,422,504 | ) | (17,096,489 | ) | ||||
Total Members' Equity | 8,393,656 | 7,800,663 | ||||||
TOTAL LIABILITIES AND MEMBERS' EQUITY | $ | 13,610,855 | $ | 14,695,242 |
No assurance is provided.
See accompanying notes, which are an integral part of these financial statements.
41 |
MY RACEHORSE CA LLC
STATEMENTS OF OPERATIONS (UNAUDITED)
For the Six-Month Periods Ended June 30, 2022 and 2021
30-Jun-22 | 30-Jun-21 | |||||||
Revenues | $ | 1,421,369 | $ | 982,124 | ||||
Cost of revenues | (2,224,144 | ) | (1,989,394 | ) | ||||
Gross Profit/(Loss) | (802,775 | ) | (1,007,270 | ) | ||||
Operating Expenses: | ||||||||
Depreciation | 2,614,422 | 2,365,341 | ||||||
Management charges | 1,056,651 | 898,703 | ||||||
General and administrative | 249,793 | 168,036 | ||||||
Total Operating Expenses | 3,920,866 | 3,432,080 | ||||||
Loss from Operations | (4,723,641 | ) | (4,439,350 | ) | ||||
Other Income/(Expense): | ||||||||
Gain/(loss) on disposition of horses | 125,570 | (224,800 | ) | |||||
Debt forgiveness | 293,815 | – | ||||||
Interest expense | (21,759 | ) | (30,816 | ) | ||||
Total Other Expenses | 397,626 | (255,616 | ) | |||||
Provision for Income Taxes | – | – | ||||||
Net Loss | $ | (4,326,015 | ) | $ | (4,694,966 | ) |
No assurance is provided.
See accompanying notes, which are an integral part of these financial statements.
In the opinion of management all adjustments necessary in order to make the interim consolidated financial statements not misleading have been included.
42 |
MY RACEHORSE CA LLC
STATEMENTS OF CHANGES IN MEMBERS’ EQUITY (UNAUDITED)
For the Six-Month Period Ended June 30, 2022 and for the Year Ended December 31, 2021
Membership in My Racehorse CA LLC | Subscriptions in Series | Accumulated Deficit | Total Members' Equity | |||||||||||||
Balance at December 31, 2020 | $ | 11,843 | $ | 14,902,854 | $ | (6,787,961 | ) | $ | 8,126,736 | |||||||
Subscriptions received in horse series | – | 11,400,929 | – | 11,400,929 | ||||||||||||
Distributions from horse series | – | (1,731,559 | ) | – | (1,731,559 | ) | ||||||||||
Contributions by manager | 313,085 | – | – | 313,085 | ||||||||||||
Net loss | – | – | (10,308,528 | ) | (10,308,528 | ) | ||||||||||
Balance at December 31, 2021 | 324,928 | 24,572,224 | (17,096,489 | ) | 7,800,663 | |||||||||||
Subscriptions received in horse series | – | 6,051,482 | – | 6,051,482 | ||||||||||||
Distributions from horse series | – | (1,378,592 | ) | – | (1,378,592 | ) | ||||||||||
Contributions by manager | 246,118 | – | – | 246,118 | ||||||||||||
Net loss | – | – | (4,326,015 | ) | (4,326,015 | ) | ||||||||||
Balance at June 30, 2022 | $ | 571,046 | $ | 29,245,114 | $ | (21,422,504 | ) | $ | 8,393,656 |
No assurance is provided.
See accompanying notes, which are an integral part of these financial statements.
43 |
MY RACEHORSE CA LLC
STATEMENTS OF CASH FLOWS (UNAUDITED)
For the Six-Month Periods Ended June 30, 2022 and 2021
30-Jun-22 | 30-Jun-21 | |||||||
Cash Flows From Operating Activities | ||||||||
Net Loss | $ | (4,326,015 | ) | $ | (4,694,966 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Depreciation | 2,614,422 | 2,365,341 | ||||||
Loss/(gain) on disposal of horse ownership | (125,570 | ) | 224,800 | |||||
Gain on debt forgiveness | (293,815 | ) | – | |||||
Changes in operating assets and liabilities: | ||||||||
Change in accounts receivables | (4,232 | ) | – | |||||
Change in prepaid expense | – | 256,980 | ||||||
Change in other assets | (11,038 | ) | – | |||||
Change in accrued expense | 39,230 | – | ||||||
Change in accrued interest payable | (46,933 | ) | 16,048 | |||||
Net Cash Used In Operating Activities | (2,153,951 | ) | (1,831,797 | ) | ||||
Cash Flows From Investing Activities | ||||||||
Purchase of horse assets | (1,965,387 | ) | (4,544,380 | ) | ||||
Proceeds from horse disposition | 1,064,227 | 93,712 | ||||||
Net Cash Used In Investing Activities | (901,160 | ) | (4,450,668 | ) | ||||
Cash Flows From Financing Activities | ||||||||
Subscriptions received in horse series | 6,051,482 | 5,410,040 | ||||||
Distributions from horse series | (1,378,592 | ) | (759,360 | ) | ||||
Capital contributions | 246,118 | 162,901 | ||||||
Horse revenues, net of expenses, applied to related party loans | 42,632 | 259,653 | ||||||
Net advances/(repayments) in amount due to manager | (1,906,529 | ) | 1,209,231 | |||||
Net Cash Provided by Financing Activities | 3,055,111 | 6,282,465 | ||||||
Net Change In Cash | – | – | ||||||
Cash at Beginning of Period | – | – | ||||||
Cash at End of Period | $ | – | $ | – | ||||
Supplemental Disclosure of Cash Flow Information | ||||||||
Cash paid for interest | $ | – | $ | – | ||||
Cash paid for income taxes | $ | – | $ | – | ||||
Supplemental Disclosure of Non-Cash Activities: | ||||||||
Horses purchased by issuance of related party notes payable | $ | – | $ | – | ||||
Non-cash management fees | $ | – | $ | – |
No assurance is provided.
See accompanying notes, which are an integral part of these financial statements.
44 |
MY RACEHORSE CA LLC
NOTES TO THE FINANCIAL STATEMENTS
As of June 30, 2022 and December 31, 2021 and for the Six-Month Periods Ended June 30, 2022 and 2021
NOTE 1: NATURE OF OPERATIONS
My Racehorse CA LLC d/b/a MyRaceHorse.com (the “Company”) is an early-stage investment series limited liability company established by the manager, Experiential Squared, Inc. (the “Manager”), to invest in individual interests in thoroughbred, quarter and Standardbred horses through underlying Series LLCs. The Company aims to democratize the ownership of racehorses through a self-developed web-based platform and allow fans to experience racehorse ownership by investing in Series LLCs with other like-minded fans. The Company is headquartered in Claremont, CA. The Company was formed in 2016.
Since inception, the Company has relied on advances from founders and raising capital to fund its operations. The Company will likely incur losses prior to generating positive working capital. These matters raise substantial doubt about the Company’s ability to continue as a going concern. During the next 12 months, the Company intends to fund its operations with funding from a Regulation A securities campaign (see Note 10), capital contributions from the founder, and funds from revenue producing activities, if and when such can be realized. If the Company cannot secure additional short-term capital, it may cease operations. These financial statements and related notes thereto do not include any adjustments that might result from these uncertainties.
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (GAAP).
The Company adopted the calendar year as its basis of reporting.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Cash Equivalents and Concentration of Cash Balance
The Company considers short-term, highly liquid investment with original maturities of three months or less at the time of purchase to be cash equivalents. Cash consists of funds held in the Company’s checking account. As of June 30, 2022 and December 31, 2021, the Company had no cash on hand.
Receivables and Credit Policy
Trade receivables from customers are uncollateralized customer obligations due under normal trade terms, primarily requiring payment before services are rendered. Trade receivables are stated at the amount billed to the customer. Payments of trade receivables are allocated to the specific invoices identified on the customer’s remittance advice or, if unspecified, are applied to the earliest unpaid invoice. The Company, by policy, routinely assesses the financial strength of its customers. As a result, the Company believes that its accounts receivable credit risk exposure is limited, and it has not experienced significant write-downs in its accounts receivable balances. As of June 30, 2022 and December 31, 2021, the Company has no outstanding accounts receivable. However, all of the cash of the Company is held by the Manager on behalf of the Company.
No assurance is provided.
45 |
MY RACEHORSE CA LLC
NOTES TO THE FINANCIAL STATEMENTS
As of June 30, 2022 and December 31, 2021 and for the Six-Month Periods Ended June 30, 2022 and 2021
Property and Equipment
Property and equipment are recorded at cost. Expenditures for renewals and improvements that significantly add to the productive capacity or extend the useful life of an asset are capitalized. Expenditures for maintenance and repairs are expensed as incurred. When equipment is retired or sold, the cost and related accumulated depreciation are eliminated from the balance sheet accounts and the resultant gain or loss is reflected in income.
Depreciation is provided using the straight-line method, based on useful lives of the assets which range from three to five years. Horse assets are depreciated using the straight-line method over 36 months with no estimated salvage value. A horse is treated as placed in service upon its acquisition by the Company.
The Company reviews the carrying value of property and equipment for impairment whenever events and circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future cash flows are less than the carrying value, an impairment loss is recognized equal to an amount by which the carrying value exceeds the fair value of assets. The factors considered by management in performing this assessment include current operating results, trends and prospects, the manner in which the property is used, and the effects of obsolescence, demand, competition, and other economic factors.
As of June 30, 2022 and December 31, 2021, the Company has $17,381,735 and $18,235,194, respectively, recorded at cost in horse assets.
As of June 30, 2022, property and equipment consisted of the following:
Series Name | Horse Asset plus Acquisition Costs | Less: Depreciation through June 30, 2022 | Total | |||||||||
Edge Captain Sparrow | $ | 70,000 | $ | (2,509 | ) | $ | 67,491 | |||||
Edge Dancing Crane | 85,000 | (38,874 | ) | 46,126 | ||||||||
Edge Demogorgon | 90,000 | (20,484 | ) | 69,516 | ||||||||
Edge Escape Route | 42,400 | (24,353 | ) | 18,047 | ||||||||
Edge Gentleman Gerry | 100,000 | (6,481 | ) | 93,519 | ||||||||
Edge Golden Quality | 90,000 | (31,833 | ) | 58,167 | ||||||||
Edge Halofied | 55,000 | (21,796 | ) | 33,204 | ||||||||
Edge In Due Time | 76,000 | (30,204 | ) | 45,796 | ||||||||
Edge Interstellar | 60,000 | (3,500 | ) | 56,500 |
No assurance is provided.
46 |
MY RACEHORSE CA LLC
NOTES TO THE FINANCIAL STATEMENTS
As of June 30, 2022 and December 31, 2021 and for the Six-Month Periods Ended June 30, 2022 and 2021
Series Name | Horse Asset plus Acquisition Costs | Less: Depreciation through June 30, 2022 | Total | |||||||||
Edge Jai Ho | $ | 87,500 | $ | (3,136 | ) | $ | 84,364 | |||||
Edge National Road | 100,000 | (29,996 | ) | 70,005 | ||||||||
Edge Pep Rally | 90,000 | (8,790 | ) | 81,210 | ||||||||
Edge Spun Intended | 62,500 | (5,824 | ) | 56,676 | ||||||||
ESF-Picture of a Lady | 44,100 | (1,062 | ) | 43,038 | ||||||||
Edge Sunsanddrinkinhand | 70,000 | (9,306 | ) | 60,694 | ||||||||
Edge Tepeu | 110,000 | (43,593 | ) | 66,407 | ||||||||
Edge Walk the Talk | 84,000 | (35,978 | ) | 48,022 | ||||||||
Edge Yes This Time | 100,000 | (50,358 | ) | 49,642 | ||||||||
MRH A Mo Reay | 164,000 | (97,793 | ) | 66,207 | ||||||||
MRH Above Suspicion | 86,100 | (52,002 | ) | 34,098 | ||||||||
MRH Always Hopeful | 85,680 | (32,476 | ) | 53,205 | ||||||||
MRH Authentic | 4,359,157 | (2,932,708 | ) | 1,426,449 | ||||||||
MRH Balletic | 472,500 | (140,565 | ) | 331,935 | ||||||||
MRH Boppy | 47,250 | (12,731 | ) | 34,519 | ||||||||
MRH Cable Boss | 294,525 | (87,619 | ) | 206,906 | ||||||||
MRH Can't Hush This | 198,000 | (117,883 | ) | 80,117 | ||||||||
MRH Carpe Vinum | 129,300 | (129,300 | ) | – | ||||||||
MRH Carrothers | 322,355 | (144,228 | ) | 178,127 | ||||||||
MRH CB Bundle | 633,623 | (151,275 | ) | 482,348 | ||||||||
MRH Celebrity News | 63,000 | (24,958 | ) | 38,042 | ||||||||
MRH Chasing Time | 262,500 | (104,687 | ) | 157,813 | ||||||||
MRH Classic Cut | 252,000 | (75,194 | ) | 176,806 | ||||||||
MRH Cornice Traverse | 157,500 | (62,335 | ) | 95,165 | ||||||||
MRH Cuvier | 73,500 | (1,565 | ) | 71,935 | ||||||||
MRH Daddy's Joy | 48,000 | (48,000 | ) | – | ||||||||
MRH Deep Cover | 82,000 | (61,837 | ) | 20,163 | ||||||||
MRH Dolce Notte | 73,800 | (43,870 | ) | 29,930 | ||||||||
MRH Duke of Love | 89,250 | (33,394 | ) | 55,856 | ||||||||
MRH Filly Four | 1,426,452 | (1,426,452 | ) | – | ||||||||
MRH Forbidden Kingdom | 153,000 | (92,367 | ) | 60,633 | ||||||||
MRH Forever Rose | 124,049 | (1,953 | ) | 122,097 | ||||||||
MRH Frosted Oats | 102,500 | (61,405 | ) | 41,095 | ||||||||
MRH Future Stars Stable | 335,500 | (215,791 | ) | 119,709 | ||||||||
MRH Going to Vegas | 318,750 | (145,788 | ) | 172,962 | ||||||||
MRH Helicopter Money | 39,375 | (510 | ) | 38,865 | ||||||||
MRH Hero Status | 170,100 | (73,161 | ) | 96,939 | ||||||||
MRH I'm A Looker | 262,500 | (5,347 | ) | 257,153 | ||||||||
MRH Infinite Empire | 147,600 | (88,423 | ) | 59,177 |
No assurance is provided.
47 |
MY RACEHORSE CA LLC
NOTES TO THE FINANCIAL STATEMENTS
As of June 30, 2022 and December 31, 2021 and for the Six-Month Periods Ended June 30, 2022 and 2021
Series Name | Horse Asset plus Acquisition Costs | Less: Depreciation through June 30, 2022 | Total | |||||||||
MRH Inspector | $ | 94,500 | $ | (6,213 | ) | $ | 88,288 | |||||
MRH Iron Works | 294,525 | (117,459 | ) | 177,066 | ||||||||
MRH Kanthari | 307,913 | (130,504 | ) | 177,408 | ||||||||
MRH Laforgia | 229,500 | (138,550 | ) | 90,950 | ||||||||
MRH Lane Way | 392,932 | (316,138 | ) | 76,794 | ||||||||
MRH Lookwhogotlucky | 47,150 | (27,984 | ) | 19,166 | ||||||||
MRH Magical Ways | 252,000 | (100,278 | ) | 151,722 | ||||||||
MRH Man Among Men | 147,600 | (88,423 | ) | 59,177 | ||||||||
MRH Micro Share | 240,975 | (95,891 | ) | 145,084 | ||||||||
MRH Miss Sakamoto | 157,500 | (62,674 | ) | 94,826 | ||||||||
MRH Mo Temptation | 110,250 | (3,952 | ) | 106,298 | ||||||||
MRH Moonbow 20 | 51,188 | (1,789 | ) | 49,399 | ||||||||
MRH Mrs Whistler | 84,000 | (33,352 | ) | 50,648 | ||||||||
MRH My Fast One 20 | 105,000 | (2,333 | ) | 102,667 | ||||||||
MRH Naismith | 164,250 | (100,493 | ) | 63,757 | ||||||||
MRH NY Exacta | 215,000 | (140,251 | ) | 74,749 | ||||||||
MRH Ocean Magic 18 | 15,606 | (15,606 | ) | – | ||||||||
MRH Phantom Ride | 100,800 | (6,440 | ) | 94,360 | ||||||||
MRH Provocateur | 246,000 | (146,689 | ) | 99,311 | ||||||||
MRH Regal Rebel | 126,000 | (47,307 | ) | 78,693 | ||||||||
MRH Rosie's Alibi | 656,250 | (195,817 | ) | 460,433 | ||||||||
MRH Salute to America | 84,000 | (31,430 | ) | 52,570 | ||||||||
MRH Search Engine | 334,688 | (132,886 | ) | 201,801 | ||||||||
MRH Show Your Cards | 252,000 | (16,333 | ) | 235,667 | ||||||||
MRH Sixtythreecaliber | 125,000 | (74,653 | ) | 50,347 | ||||||||
MRH Stay Fabulous | 118,125 | (2,406 | ) | 115,719 | ||||||||
MRH Straight No Chaser | 115,500 | (43,216 | ) | 72,284 | ||||||||
MRH Sun Valley Road | 39,375 | (10,339 | ) | 29,036 | ||||||||
MRH Tap the Gavel | 241,500 | (95,887 | ) | 145,613 | ||||||||
MRH Thirteen Stripes | 100,000 | (68,426 | ) | 31,574 | ||||||||
MRH Tizamagician | 121,545 | (121,545 | ) | – | ||||||||
MRH Tufnel | 163,800 | (40,062 | ) | 123,738 | ||||||||
MRH Vow | 147,000 | (58,366 | ) | 88,634 | ||||||||
MRH War Safe | 94,500 | (32,857 | ) | 61,643 | ||||||||
MRH Who Runs the World | 321,300 | (95,584 | ) | 225,716 | ||||||||
P-MRH Bella Chica | 25,000 | (25,000 | ) | – | ||||||||
P-MRH Malibu Mayhem | 95,550 | (37,853 | ) | 57,697 | ||||||||
P-MRH Utalknboutpractice | 11,970 | (11,970 | ) | – | ||||||||
TOTAL | $ | 18,820,157 | $ | (9,510,651 | ) | $ | 9,309,506 |
No assurance is provided.
48 |
MY RACEHORSE CA LLC
NOTES TO THE FINANCIAL STATEMENTS
As of June 30, 2022 and December 31, 2021 and for the Six-Month Periods Ended June 30, 2022 and 2021
Fair Value of Financial Instruments
Financial Accounting Standards Board (“FASB”) guidance specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect market assumptions. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The three levels of the fair value hierarchy are as follows:
Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 1 primarily consists of financial instruments whose value is based on quoted market prices such as exchange-traded instruments and listed equities.
Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly (e.g., quoted prices of similar assets or liabilities in active markets, or quoted prices for identical or similar assets or liabilities in markets that are not active).
Level 3 - Unobservable inputs for the asset or liability. Financial instruments are considered Level 3 when their fair values are determined using pricing models, discounted cash flows or similar techniques and at least one significant model assumption or input is unobservable.
The carrying amounts reported in the balance sheets approximate their fair value.
Revenue Recognition
ASC Topic 606, “Revenue from Contracts with Customers” establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the Company’s contracts to provide goods to customers. Revenues are recognized when control of the promised goods are transferred to a customer, in an amount that reflects the consideration that the Company expects to receive in exchange for those goods. The Company applies the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements: 1) identify the contract with a customer; 2) identify the performance obligations in the contract; 3) determine the transaction price; 4) allocate the transaction price to performance obligations in the contract; and 5) recognize revenue as the performance obligation is satisfied. No adjustments to revenue recognition were required from the adoption of ASC 606, which was adopted January 1, 2019 and applied to the periods presented using the full retrospective method. The Company generally recognizes revenues upon earning income from its horses.
Costs of Revenues
Costs of revenues include horse related expenses such as insurance, photography, stables and training, transportation and veterinary, depreciation, and gains/losses on horse disposals.
Advertising Expenses
The Company expenses advertising costs as they are incurred.
No assurance is provided.
49 |
MY RACEHORSE CA LLC
NOTES TO THE FINANCIAL STATEMENTS
As of June 30, 2022 and December 31, 2021 and for the Six-Month Periods Ended June 30, 2022 and 2021
Income Taxes
The Company is a limited liability company. Accordingly, under the Internal Revenue Code (IRC), all taxable income or loss flows through to its members. Therefore, no provision for income tax has been recorded in the statements. Income from the Company is reported and taxed to the members on their individual tax returns. However, the Company has elected, in accordance with IRC, to treat each of the individual series as separate subchapter C corporations for tax purposes. No tax provision has been recorded for any series through the balance sheet date as each is in a taxable loss position and no future tax benefits can be reasonably anticipated. The Company complies with FASB ASC 740 for accounting for uncertainty in income taxes recognized in a company’s financial statements, which prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. FASB ASC 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. Based on the Company’s evaluation, it has been concluded that there are no significant uncertain tax positions requiring recognition in the Company’s financial statements. The Company believes that its income tax positions would be sustained on audit and does not anticipate any adjustments that would result in a material change to its financial position.
The Company may in the future become subject to federal, state and local income taxation though it has not been since its inception. The Company is not presently subject to any income tax audit in any taxing jurisdiction.
Reclassifications of Prior Year Balances
Certain amounts in the June 30, 2021 statement of cash flows were reclassified to conform to current period presentation. There was no change in the Company’s net loss or net equity position from these reclassifications.
NOTE 3: 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. The Company is a business that has not yet generated profits since inception, has sustained a net loss of $4,326,015 during the six-month period ended June 30, 2022, and is dependent upon its manager for financing its operations. The Company’s financial performance is impacted by several key factors. Expenses such as training and care, veterinary, and depreciation are incurred from the date of acquisition, however; series revenues will not commence until the horses begin racing sometime during their two-year-old season. Additionally, as horses continue to mature the series will have increased opportunity to generate greater revenue to offset their ongoing expenses. These factors, among others, raise substantial doubt about the ability of the Company to continue as a going concern for a reasonable period of time.
In making this assessment, management weighed the significance of the factors, conditions, and events considered. Management based the conclusion primarily on the inception-to-date cumulative losses. These factors were determined to be the primary drivers of the Company’s ability to sustain its
operating costs in the near term. Management also performed an analysis of its operations through the issuance of these financial statements and funding options currently available to it, including a line of credit available to its manager and its manager’s ability and intent to fund any operational needs for the coming year.
Management concluded that its plans successfully alleviate the substantial doubt to the ability of the Company to continue as a going concern within one year after the date that the financial statements are issued. No assurance can be given that the Company will be successful in these efforts. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.
No assurance is provided.
50 |
MY RACEHORSE CA LLC
NOTES TO THE FINANCIAL STATEMENTS
As of June 30, 2022 and December 31, 2021 and for the Six-Month Periods Ended June 30, 2022 and 2021
NOTE 4: ADVANCES FROM MANAGER
To fund its organizational and start-up activities as well as to advance funds on behalf of a series to purchase horse assets, the Manager has covered the expenses and costs of the Company and its series thus far on an interest-bearing revolving line of credit. The manager is entitled to 2.38% interest on the outstanding balance as well as profit participation on the unsold shares. To date the manager has waived the interest due from the series. The Company will evaluate when is best to repay the Manager depending on operations and fundraising ability. In general, the Company will repay the Manager for funds extended to acquire horse assets from the series subscription proceeds (less the applicable management fee), as they are received. Additionally, the Manager maintains cash reserves on behalf of each of the series of the Company to cover expenses of the series’ operations.
In the table below, the Company outlines the positions of borrowings and amounts owed to it by the Manager:
Series Name | Horse reserve account owed to/(by) Series | (Horse acquisition loans owed to Manager) | Net amount owed to/(by) Series | |||||||||
Edge Captain Sparrow | $ | 20,705 | $ | – | $ | 20,705 | ||||||
Edge Dancing Crane | 303 | – | 303 | |||||||||
Edge Demogorgon | 970 | – | 970 | |||||||||
Edge Escape Route | 6,617 | – | 6,617 | |||||||||
Edge Gentleman Gerry | 26,290 | 13,500 | 12,790 | |||||||||
Edge Golden Quality | (53 | ) | – | (53 | ) | |||||||
Edge Halofied | (602 | ) | – | (602 | ) | |||||||
Edge In Due Time | (1,039 | ) | – | (1,039 | ) | |||||||
Edge Interstellar | 12,416 | 27,000 | (14,584 | ) | ||||||||
Edge Jai Ho | 21,576 | – | 21,576 | |||||||||
Edge National Road | (7,943 | ) | – | (7,943 | ) | |||||||
Edge Pep Rally | 16,595 | 12,200 | 4,395 | |||||||||
Edge Spun Intended | 16,248 | – | 16,248 |
No assurance is provided.
51 |
MY RACEHORSE CA LLC
NOTES TO THE FINANCIAL STATEMENTS
As of June 30, 2022 and December 31, 2021 and for the Six-Month Periods Ended June 30, 2022 and 2021
Series Name | Horse reserve account owed to/(by) Series | (Horse acquisition loans owed to Manager) | Net amount owed to/(by) Series | |||||||||
Edge Summer Fun-d 1 | $ | 176,768 | $ | 162,000 | $ | 14,768 | ||||||
Edge Sunsanddrinkinhand | 1,884 | – | 1,884 | |||||||||
Edge Tepeu | (6,571 | ) | – | (6,571 | ) | |||||||
Edge Walk the Talk | (2,636 | ) | – | (2,636 | ) | |||||||
Edge Yes This Time | 12,057 | – | 12,057 | |||||||||
MRH A Mo Reay | 13,907 | – | 13,907 | |||||||||
MRH Above Suspicion | 10,399 | – | 10,399 | |||||||||
MRH Always Hopeful | 44,684 | – | 44,684 | |||||||||
MRH Authentic | (348,243 | ) | – | (348,243 | ) | |||||||
MRH Balletic | 141,463 | 136 | 141,327 | |||||||||
MRH Boppy | 27,605 | – | 27,605 | |||||||||
MRH Cable Boss | 83,685 | – | 83,685 | |||||||||
MRH Can't Hush This | 21,480 | – | 21,480 | |||||||||
MRH Carpe Vinum | (33,060 | ) | – | (33,060 | ) | |||||||
MRH Carrothers | 30,523 | – | 30,523 | |||||||||
MRH CB Bundle | 252,128 | – | 252,128 | |||||||||
MRH Celebrity News | 41,641 | – | 41,641 | |||||||||
MRH Chasing Time | 63,694 | – | 63,694 | |||||||||
MRH Classic Cut | 125,756 | – | 125,756 | |||||||||
MRH Cornice Traverse | 60,971 | – | 60,971 | |||||||||
MRH Cuvier | 83,755 | 160,000 | (76,245 | ) | ||||||||
MRH Daddy's Joy | (24,601 | ) | – | (24,601 | ) | |||||||
MRH Deep Cover | 13,607 | – | 13,607 | |||||||||
MRH Dolce Notte | 9,945 | – | 9,945 | |||||||||
MRH Duke of Love | 69,151 | – | 69,151 | |||||||||
MRH Filly Four | 342,202 | – | 342,202 | |||||||||
MRH Forbidden Kingdom | 1,589 | – | 1,589 | |||||||||
MRH Forever Rose | 57,426 | 187,000 | (129,574 | ) | ||||||||
MRH Frosted Oats | 22,354 | – | 22,354 | |||||||||
MRH Future Stars Stable | 63,533 | – | 63,533 | |||||||||
MRH Going to Vegas | 13,919 | – | 13,919 | |||||||||
MRH Helicopter Money | 118,014 | 160,800 | (42,786 | ) | ||||||||
MRH Hero Status | 68,425 | – | 68,425 | |||||||||
MRH I'm A Looker | 195,474 | 464,000 | (268,526 | ) | ||||||||
MRH Infinite Empire | 13,011 | – | 13,011 | |||||||||
MRH Inspector | 89,149 | – | 89,149 | |||||||||
MRH Iron Works | 65,565 | – | 65,565 | |||||||||
MRH Kanthari | 25,720 | – | 25,720 | |||||||||
MRH Laforgia | 32,823 | – | 32,823 |
No assurance is provided.
52 |
MY RACEHORSE CA LLC
NOTES TO THE FINANCIAL STATEMENTS
As of June 30, 2022 and December 31, 2021 and for the Six-Month Periods Ended June 30, 2022 and 2021
Series Name | Horse reserve account owed to/(by) Series | (Horse acquisition loans owed to Manager) | Net amount owed to/(by) Series | |||||||||
MRH Lane Way | $ | (46,458 | ) | $ | – | $ | (46,458 | ) | ||||
MRH Lookwhogotlucky | 8,869 | – | 8,869 | |||||||||
MRH Magical Ways | 70,467 | 139,613 | (69,146 | ) | ||||||||
MRH Man Among Men | 13,077 | – | 13,077 | |||||||||
MRH Micro Share | 52,468 | – | 52,468 | |||||||||
MRH Miss Sakamoto | 61,008 | (46 | ) | 61,054 | ||||||||
MRH Mo Temptation | 125,169 | 243,600 | (118,431 | ) | ||||||||
MRH Moonbow 20 | 117,545 | 172,000 | (54,455 | ) | ||||||||
MRH Mrs Whistler | 85,080 | (233 | ) | 85,313 | ||||||||
MRH My Fast One 20 | 155,014 | 264,000 | (108,986 | ) | ||||||||
MRH Naismith | (21,947 | ) | – | (21,947 | ) | |||||||
MRH NY Exacta | (16,622 | ) | – | (16,622 | ) | |||||||
MRH Ocean Magic 18 | (6,171 | ) | – | (6,171 | ) | |||||||
MRH Phantom Ride | 90,488 | – | 90,488 | |||||||||
MRH Provocateur | 36,417 | – | 36,417 | |||||||||
MRH Regal Rebel | 91,028 | – | 91,028 | |||||||||
MRH Rosie's Alibi | 152,333 | – | 152,333 | |||||||||
MRH Salute to America | 75,452 | – | 75,452 | |||||||||
MRH Search Engine | 61,660 | – | 61,660 | |||||||||
MRH Show Your Cards | 126,535 | 88,308 | 38,227 | |||||||||
MRH Sixtythreecaliber | 15,978 | – | 15,978 | |||||||||
MRH Stay Fabulous | 127,323 | 248,000 | (120,677 | ) | ||||||||
MRH Straight No Chaser | 105,006 | 847 | 104,160 | |||||||||
MRH Sun Valley Road | 26,549 | (103 | ) | 26,652 | ||||||||
MRH Tap the Gavel | 78,961 | – | 78,961 | |||||||||
MRH Thirteen Stripes | (544 | ) | – | (544 | ) | |||||||
MRH Tizamagician | (14,982 | ) | – | (14,982 | ) | |||||||
MRH Tufnel | 75,877 | 2,161 | 73,716 | |||||||||
MRH Vertical Threat | 49,981 | – | 49,981 | |||||||||
MRH Vow | 92,315 | – | 92,315 | |||||||||
MRH War Safe | 89,296 | – | 89,296 | |||||||||
MRH Who Runs the World | 86,913 | 1,238 | 85,675 | |||||||||
P-MRH Inalattetrouble | 16,269 | – | 16,269 | |||||||||
P-MRH Malibu Mayhem | 63,371 | – | 63,371 | |||||||||
P-MRH Storm Shooter | 21,356 | – | 21,356 | |||||||||
TOTAL | $ | 4,156,357 | $ | 2,346,020 | $ | 1,810,337 |
All Series not presented in the table above had $0 balances due to/from the Manager as of June 30, 2022.
53 |
MY RACEHORSE CA LLC
NOTES TO THE FINANCIAL STATEMENTS
As of June 30, 2022 and December 31, 2021 and for the Six-Month Periods Ended June 30, 2022 and 2021
NOTE 5: LOANS PAYABLE – RELATED PARTY
The Company acquired the horse asset in the MRH Palace Foal series via a $15,606 convertible profit participating loan from Michael Behrens, a principal of the Manager of the Company. The convertible profit participating loan bears a 2.38 percent per annum interest rate and is due either when the MRH Palace Foal series is fully subscribed or converted into the unsold units of the MRH Palace Foal. During the time the convertible profit participating loan is outstanding, the underlying cash flow of the MRH Palace Foal series accrues to the loan holder. $15,606 was outstanding on this loan as of both June 30, 2022 and December 31, 2021.
In 2020, with the purchase of the MRH Authentic horse asset the Company agreed to pay purchase bonuses (kickers) upon the achievement of certain milestones. Kickers of $2,443,750 were earned in 2020 and were recognized as a loan payable obligation to the co-owner Spendthrift Farm LLC, a related party, and capitalized as additional horse asset purchase costs. The loan is to be repaid out of the underlying horse income, net of expenses incurred by the co-owner resulting from the horse’s breeding career. As of June 30, 2022 and December 31, 2021, the outstanding balance of the loan was $1,911,113 and $1,893,474, respectively.
The Company’s manager was entitled to certain unpaid management fees related to the MRH Authentic horse, which totaled $75,000 in 2021 and remained outstanding to the Manager in such amount as of both June 30, 2022 and December 31, 2021.
In conjunction with the purchase of the Filly Four series, a portion of the horse purchase price amounting to $534,920 was deferred to be paid out to the co-owner Spendthrift Farm LLC, a related party, from future income from the residual value resulting from the sale of the horse(s). The balance outstanding as of December 31, 2021 was $446,051. The related party forgave $274,518 during the six-month period ended June 30, 2022 and the balance of the loan was repaid.
The Company’s manager and another related party, Spendthrift Farm LLC paid certain training costs on behalf of the Company during 2021 and 2022. As of June 30, 2022 and December 31, 2021, $769,905 and $592,676 remained outstanding on these agreements, respectively. The note will be repaid at the close of the series from the residual value upon the sale of the horse. Loan balances totaling $19,297 were forgiven during the six-month period ended June 30, 2022.
Interest expense totaled $21,759 and $30,816 for the six-month periods ended June 30, 2022 and 2021, respectively.
No assurance is provided.
54 |
MY RACEHORSE CA LLC
NOTES TO THE FINANCIAL STATEMENTS
As of June 30, 2022 and December 31, 2021 and for the Six-Month Periods Ended June 30, 2022 and 2021
NOTE 6: MEMBERS’ EQUITY
Series Subscriptions
Series Name | Units Offered | Units Tendered | Series Subscriptions | |||||||||
Closed-Motion Emotion | 1,020 | 1,020 | $ | 85,680 | ||||||||
Closed-MRH Amandrea | 550 | 550 | 162,250 | |||||||||
Closed-MRH Ancient Royalty | 900 | 900 | 125,100 | |||||||||
Closed-MRH Annahilate | 450 | 450 | 135,000 | |||||||||
Closed-MRH Got Stormy | 5,100 | 5,100 | 229,500 | |||||||||
Closed-MRH Kichiro | 200 | 200 | 26,000 | |||||||||
Closed-MRH Lazy Daisy | 1,250 | 1,250 | 143,750 | |||||||||
Closed-MRH Monomoy Girl | 10,200 | 10,200 | 469,200 | |||||||||
Closed-MRH Sigesmund | 200 | 200 | 20,000 | |||||||||
Closed-MRH Social Dilemma | 510 | 510 | 85,170 | |||||||||
Closed-MRH Solar Strike | 6,000 | 6,000 | 390,000 | |||||||||
Closed-MRH Squared Straight | 150 | 150 | 40,500 | |||||||||
Closed-MRH Wayne O | 6,000 | 6,000 | 570,000 | |||||||||
Edge Captain Sparrow | 10 | 10 | 112,000 | |||||||||
Edge Dancing Crane | 20 | 20 | 122,000 | |||||||||
Edge Demogorgon | 20 | 20 | 128,000 | |||||||||
Edge Escape Route | 10 | 10 | 62,952 | |||||||||
Edge Gentleman Gerry | 20 | 19 | 139,500 | |||||||||
Edge Golden Quality | 20 | 20 | 140,000 | |||||||||
Edge Halofied | 20 | 20 | 100,000 | |||||||||
Edge In Due Time | 20 | 20 | 150,000 | |||||||||
Edge Interstellar | 12 | 8 | 62,000 | |||||||||
Edge Jai Ho | 10 | 10 | 135,000 | |||||||||
Edge National Road | 20 | 20 | 140,000 | |||||||||
Edge Pep Rally | 20 | 18 | 126,000 | |||||||||
Edge Spun Intended | 10 | 10 | 100,000 | |||||||||
Edge Summer Fun-d 1 | 50 | 14 | 70,000 | |||||||||
Edge Sunsanddrinkinhand | 20 | 20 | 100,000 | |||||||||
Edge Tepeu | 20 | 20 | 170,000 | |||||||||
Edge Walk the Talk | 12 | 12 | 126,000 | |||||||||
Edge Yes This Time | 10 | 10 | 129,520 | |||||||||
MRH A Mo Reay | 820 | 820 | 246,820 | |||||||||
MRH Above Suspicion | 820 | 820 | 138,580 | |||||||||
MRH Always Hopeful | 1,020 | 1,020 | 205,020 | |||||||||
MRH Authentic | 12,500 | 12,500 | 2,575,000 | |||||||||
MRH Balletic | 10,000 | 9,998 | 799,840 | |||||||||
MRH Boppy | 750 | 750 | 101,250 | |||||||||
MRH Cable Boss | 5,100 | 5,100 | 494,700 | |||||||||
MRH Can't Hush This | 1,800 | 1,800 | 295,200 |
No assurance is provided.
55 |
MY RACEHORSE CA LLC
NOTES TO THE FINANCIAL STATEMENTS
As of June 30, 2022 and December 31, 2021 and for the Six-Month Periods Ended June 30, 2022 and 2021
Series Name | Units Offered | Units Tendered | Series Subscriptions | |||||||||
MRH Carpe Vinum | 600 | 600 | $ | 192,000 | ||||||||
MRH Carrothers | 5,100 | 5,100 | 515,100 | |||||||||
MRH CB Bundle | 5,000 | 5,000 | 1,170,000 | |||||||||
MRH Celebrity News | 1,200 | 1,200 | 187,200 | |||||||||
MRH Chasing Time | 10,000 | 10,000 | 520,000 | |||||||||
MRH Classic Cut | 10,000 | 10,000 | 510,000 | |||||||||
MRH Cornice Traverse | 750 | 750 | 335,250 | |||||||||
MRH Daddy's Joy | 600 | 600 | 108,000 | |||||||||
MRH Deep Cover | 800 | 800 | 176,000 | |||||||||
MRH Dolce Notte | 820 | 820 | 121,360 | |||||||||
MRH Duke of Love | 2,000 | 2,000 | 284,000 | |||||||||
MRH Filly Four | 8,000 | 8,000 | 1,440,000 | |||||||||
MRH Forbidden Kingdom | 1,020 | 1,020 | 233,580 | |||||||||
MRH Frosted Oats | 4,100 | 4,100 | 172,200 | |||||||||
MRH Future Stars Stable | 10,000 | 10,000 | 500,000 | |||||||||
MRH Going to Vegas | 5,100 | 5,100 | 438,600 | |||||||||
MRH Hero Status | 6,000 | 6,000 | 348,000 | |||||||||
MRH Infinite Empire | 820 | 820 | 223,860 | |||||||||
MRH Inspector | 1,200 | 1,200 | 242,400 | |||||||||
MRH Iron Works | 5,100 | 5,100 | 453,900 | |||||||||
MRH Kanthari | 5,100 | 5,100 | 433,500 | |||||||||
MRH Laforgia | 10,200 | 10,200 | 357,000 | |||||||||
MRH Lane Way | 6,000 | 6,000 | 540,000 | |||||||||
MRH Lookwhogotlucky | 410 | 410 | 84,050 | |||||||||
MRH Magical Ways | 6,000 | 3,810 | 285,750 | |||||||||
MRH Man Among Men | 820 | 820 | 223,860 | |||||||||
MRH Micro Share | 5,100 | 5,100 | 377,400 | |||||||||
MRH Miss Sakamoto | 6,000 | 6,001 | 324,054 | |||||||||
MRH Mrs Whistler | 2,000 | 2,002 | 274,274 | |||||||||
MRH Naismith | 2,000 | 2,000 | 304,000 | |||||||||
MRH NY Exacta | 2,000 | 2,000 | 456,000 | |||||||||
MRH Phantom Ride | 3,000 | 3,000 | 252,000 | |||||||||
MRH Provocateur | 4,100 | 4,100 | 373,100 | |||||||||
MRH Regal Rebel | 2,000 | 2,000 | 330,000 | |||||||||
MRH Rosie's Alibi | 10,000 | 10,000 | 1,050,000 | |||||||||
MRH Salute to America | 1,000 | 1,000 | 273,000 | |||||||||
MRH Search Engine | 5,100 | 5,100 | 540,600 | |||||||||
MRH Show Your Cards | 3,000 | 2,331 | 384,615 | |||||||||
MRH Sixtythreecaliber | 1,000 | 1,000 | 193,000 |
No assurance is provided.
56 |
MY RACEHORSE CA LLC
NOTES TO THE FINANCIAL STATEMENTS
As of June 30, 2022 and December 31, 2021 and for the Six-Month Periods Ended June 30, 2022 and 2021
Series Name | Units Offered | Units Tendered | Series Subscriptions | |||||||||
MRH Straight No Chaser | 2,000 | 1,994 | $ | 331,004 | ||||||||
MRH Sun Valley Road | 750 | 751 | 90,871 | |||||||||
MRH Tap the Gavel | 10,000 | 10,000 | 490,000 | |||||||||
MRH Thirteen Stripes | 1,000 | 1,000 | 229,000 | |||||||||
MRH Tizamagician | 600 | 600 | 192,000 | |||||||||
MRH Tufnel | 5,200 | 5,159 | 319,858 | |||||||||
MRH Vertical Threat | 600 | 600 | 126,000 | |||||||||
MRH Vow | 2,000 | 2,000 | 358,000 | |||||||||
MRH War Safe | 2,000 | 2,000 | 292,000 | |||||||||
MRH Who Runs the World | 5,100 | 5,086 | 528,944 | |||||||||
P-Action Bundle | 10,000 | 10,000 | 310,000 | |||||||||
P-Edge Madeira Wine | 20 | 20 | 50,000 | |||||||||
P-MRH American Heiress | 5,100 | 5,100 | 510,000 | |||||||||
P-MRH Bella Chica | 100 | 100 | 38,000 | |||||||||
P-MRH Big Mel | 6,000 | 6,000 | 726,000 | |||||||||
P-MRH Collusion Illusion | 25,000 | 25,000 | 750,000 | |||||||||
P-MRH Howboutdemapples | 600 | 600 | 103,800 | |||||||||
P-MRH Inalattetrouble | 4,100 | 4,100 | 143,500 | |||||||||
P-MRH Malibu Mayhem | 650 | 650 | 250,900 | |||||||||
P-MRH Miss Puzzle | 125 | 125 | 31,250 | |||||||||
P-MRH Mo Mischief | 5,100 | 5,100 | 382,500 | |||||||||
P-MRH Popular Demand | 1,020 | 1,020 | 248,880 | |||||||||
P-MRH Power Up Paynter | 600 | 600 | 114,000 | |||||||||
P-MRH Quantum Theory | 1,800 | 1,800 | 84,600 | |||||||||
P-MRH Sacred Beauty | 410 | 410 | 64,370 | |||||||||
P-MRH Star Six Nine | 10,000 | 10,000 | 370,000 | |||||||||
P-MRH Storm Shooter | 2,000 | 2,000 | 324,000 | |||||||||
P-MRH Two Trail Sioux 17K | 1 | 1 | 29,720 | |||||||||
P-MRH Utalknboutpractice | 100 | 100 | 30,000 | |||||||||
Retired-MRH | 23,165 | 2,655 | 573,050 | |||||||||
Total | 343,845 | 320,374 | $ | 32,771,432 |
No assurance is provided.
57 |
MY RACEHORSE CA LLC
NOTES TO THE FINANCIAL STATEMENTS
As of June 30, 2022 and December 31, 2021 and for the Six-Month Periods Ended June 30, 2022 and 2021
The Company has received membership subscriptions for the following LLC series as of June 30, 2022.
The members of each of the Company’s series have certain rights with respect to the membership series they are subscribed to. Each series generally holds a single horse asset. A series member is entitled to their pro rata share of the net profits derived from the horse asset held in that series after deduction of expense allocations and direct expenses attributable to the underlying horse asset, based on their percentage of the total outstanding membership interests in that series.
The debts, obligations, and liabilities of the Company, whether arising in contract, tort, or otherwise, are solely the debts, obligations, and liabilities of the Company, and no member of the Company is obligated personally for any such debt, obligation, or liability.
NOTE 7: RELATED PARTY TRANSACTIONS
The Company’s Manager has advanced funds to and holds cash reserves on behalf of various of the Company’s series funds. See Note 4 for further discussions.
The Company has various loans outstanding with related parties, as described in Note 5.
Because these are related party transactions, no guarantee can be made that the terms of the arrangements are at arm’s length.
NOTE 8: RECENT ACCOUNTING PRONOUNCEMENTS
In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This ASU requires a lessee to recognize a right-of-use asset and a lease liability under most operating leases in its balance sheet. The ASU is effective for annual and interim periods beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted. We are continuing to evaluate the impact of this new standard on our financial reporting and disclosures.
Management does not believe that any other recently issued, but not yet effective, accounting standards could have a material effect on the accompanying financial statements. As new accounting pronouncements are issued, the Company will adopt those that are applicable under the circumstances.
NOTE 9: COMMITMENTS, CONTINGENCIES, AND CONCENTRATIONS
Legal Matters
Company is not currently involved with and does not know of any pending or threatening litigation against the Company or its Manager.
Long-Term Debt
The Company acquired the horse asset in the MRH Palace Foal series via a $15,606 convertible profit participating loan from Michael Behrens, a principal of the Manager of the Company. The convertible profit participating loan bears a 2.38 percent per annum interest rate is due either when the MRH Palace Foal series is fully subscribed or converted into the unsold units of the MRH Palace Foal.
During the time the convertible profit participating loan is outstanding, the underlying cash flow of the MRH Palace Foal series accrues to the loan holder.
No assurance is provided.
58 |
MY RACEHORSE CA LLC
NOTES TO THE FINANCIAL STATEMENTS
As of June 30, 2022 and December 31, 2021 and for the Six-Month Periods Ended June 30, 2022 and 2021
NOTE 10: SUBSEQUENT EVENTS
Anticipated Crowdfunded Offering
The Company is planning to continue to raise capital through the issuance of securities exempt from registration under Regulation A in 2022.
Management’s Evaluation
Management has evaluated subsequent events through September 26, 2022, the date the financial statements were available to be issued. Based on this evaluation, no additional material events were identified which require adjustment or disclosure in these financial statements.
59 |
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__________________
(1) | Filed with the Company’s Form 1-A dated September 10, 2018 and incorporated by reference herein. |
(2) | Filed with the Company’s Amendment No. 1 to Form 1-A dated November 20, 2018 and incorporated by reference herein. |
(3) | Filed with the Company’s Post-Qualification Amendment No. 1 to Form 1-A dated April 18, 2019 and incorporated by reference herein. |
(4) | Filed with the Company’s Post-Qualification Amendment No. 3 to Form 1-A dated June 25, 2019 and incorporated by reference herein. |
(5) | Filed with the Company’s Post-Qualification Amendment No. 4 to Form 1-A dated July 19, 2019 and incorporated by reference herein. |
(6) | Filed with the Company’s Post Qualification Amendment No. 5 to Form 1-A dated August 28, 2019 and incorporated by reference herein. |
(7) | Filed with the Company’s Post Qualification Amendment No. 6 to Form 1-A dated October 3, 2019 and incorporated by reference herein. |
(8) | Filed with the Company’s Post Qualification Amendment No. 7 to Form 1-A dated December 6, 2019 and incorporated by reference herein. |
(9) | Filed with the Company’s Post Qualification Amendment No. 8 to Form 1-A dated February 7, 2020 and incorporated by reference herein. |
64 |
(10) | Filed with the Company’s Post Qualification Amendment No. 9 to Form 1-A dated April 7, 2020 and incorporated by reference herein. |
(11) | Filed with the Company’s Post Qualification Amendment No. 11 to Form 1-A dated May 29, 2020 and incorporated by reference herein. |
(12) | Filed with the Company’s Post Qualification Amendment No. 12 to Form 1-A dated June 12, 2020 and incorporated by reference herein. |
(13) | Filed with the Company’s Post Qualification Amendment No. 13 to Form 1-A dated July 15, 2020 and incorporated by reference herein. |
(14) | Filed with the Company’s Post Qualification Amendment No. 14 to Form 1-A dated July 31, 2020 and incorporated by reference herein. |
(15) | Filed with the Company’s Post Qualification Amendment No. 16 to Form 1-A dated September 22, 2020 and incorporated by reference herein. |
(16) | Filed with the Company’s Post Qualification Amendment No. 19 to Form 1-A dated November 3, 2020 and incorporated by reference herein. |
(17) | Filed with the Company’s Post Qualification Amendment No. 20 to Form 1-A dated December 18, 2020 and incorporated by reference herein. |
(18) | Filed with the Company’s Post Qualification Amendment No. 22 to Form 1-A dated March 2, 2021 and incorporated by reference herein. |
(19) | Filed with the Company’s Post Qualification Amendment No. 24 to Form 1-A dated April 20, 2021 and incorporated by reference herein. |
(20) | Filed with the Company’s Post Qualification Amendment No. 24 to Form 1-A dated April 30, 2021 and incorporated by reference herein. |
(21) | Filed with the Company’s Post Qualification Amendment No. 27 to Form 1-A dated June 14, 2021 and incorporated by reference herein |
(22) | Filed with the Company’s Post Qualification Amendment No. 28 to Form 1-A dated September 3, 2021 and incorporated by reference herein. |
(23) | Filed with the Company’s Post Qualification Amendment No. 31 to Form 1-A dated December 6, 2021 and incorporated by reference herein. |
(24) | Filed with the Company’s Post Qualification Amendment No. 32 to Form 1-A dated January 11, 2022 and incorporated by reference herein. |
(25) | Filed with the Company’s Form 1-A dated February 22, 2022 and incorporated by reference herein. |
(26) | Filed with the Company’s Post Qualification Amendment No. 1 to Form 1-A dated May 6, 2022 and incorporated by reference herein. |
(27) | Filed with the Company’s Post Qualification Amendment No. 2 to Form 1-A dated June 24, 2022 and incorporated by reference herein. |
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SIGNATURES
Pursuant to the requirements of Regulation A, the issuer has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Dated: September 28, 2022 | MY RACEHORSE CA LLC |
By: Experiential Squared, Inc., its Manager | |
By: /s/ Michael Behrens | |
Name: Michael Behrens | |
Title: Chief Executive Officer |
Pursuant to the requirements of Regulation A, this report has been signed below by the following persons on behalf of the issuer and in the capacities and on the dates indicated.
Signature | Title | Date |
/s/ Michael Behrens Name: Michael Behrens | Chief Executive Officer, Chief Financial Officer, and Secretary of Experiential Squared, Inc. (Principal Executive Officer, Principal Financial Officer, and Principal Accounting Officer)
| September 28, 2022 |
MY RACEHORSE CA LLC
By: /s/ Michael Behrens Name: Michael Behrens Title: Chief Executive Officer | Manager | September 28, 2022 |
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