Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Nov. 06, 2015 | |
Document And Entity Information | ||
Entity Registrant Name | PARAGON REAL ESTATE EQUITY & INVESTMENT TRUST | |
Entity Central Index Key | 928,953 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 405,096 | |
Trading Symbol | PRLE | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,015 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Assets | ||
Cash | $ 1,020 | $ 10,726 |
Marketable securities | 100 | 19,378 |
Other assets | 3,335 | 9,953 |
Total Assets | 4,455 | 40,057 |
Liabilities: | ||
Accounts payable and accrued expenses | 8,722 | 2,517 |
Total liabilities | $ 8,722 | $ 2,517 |
Commitments and Contingencies | ||
Shareholders' equity: | ||
Common Shares - $0.01 par value, 100,000,000 authorized: 443,226 shares issued and 405,096 outstanding. | $ 4,051 | $ 4,051 |
Additional paid-in capital | 28,146,971 | 28,146,971 |
Accumulated deficit | (27,359,581) | (27,317,774) |
Treasury stock, at cost, 38,130 shares | (800,735) | (800,735) |
Total shareholders' equity | (4,267) | 37,540 |
Total Liabilities and Shareholders' Equity | 4,455 | 40,057 |
Redeemable Convertible Series A Preferred Stock [Member] | ||
Shareholders' equity: | ||
Preferred shares Value | 2,583 | 2,583 |
Redeemable Convertible Series C Preferred Stock [Member] | ||
Shareholders' equity: | ||
Preferred shares Value | $ 2,444 | $ 2,444 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2015 | Dec. 31, 2014 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 443,226 | 443,226 |
Common stock, shares outstanding | 405,096 | 405,096 |
Treasury stock, at cost, shares | 38,130 | 38,130 |
Redeemable Convertible Series A Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 258,236 | 258,236 |
Preferred stock, shares outstanding | 258,236 | 258,236 |
Preferred stock, liquidation preference | $ 10 | $ 10 |
Redeemable Convertible Series C Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 300,000 | 300,000 |
Preferred stock, shares issued | 244,444 | 244,444 |
Preferred stock, shares outstanding | 244,444 | 244,444 |
Preferred stock, liquidation preference | $ 10 | $ 10 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenues | ||||
Interest/dividend income | $ 0 | $ 1 | $ 0 | $ 4 |
Total revenues | 0 | 1 | 0 | 4 |
Expenses | ||||
General and administrative | 11,078 | 11,492 | 41,807 | 45,515 |
Total expenses | 11,078 | 11,492 | 41,807 | 45,515 |
Income (loss) from operations | (11,078) | (11,491) | (41,807) | (45,511) |
Net income (loss) attributable to Common Shareholders | $ (11,078) | $ (11,491) | $ (41,807) | $ (45,511) |
Net income (loss) attributable to Common Shareholders per Common Share: Basic and Diluted | $ (0.03) | $ (0.03) | $ (0.10) | $ (0.11) |
Weighted average number of Common Shares outstanding: Basic and Diluted | 405,096 | 405,096 | 405,096 | 405,096 |
Comprehensive income (loss): | ||||
Net income (loss) | $ (11,078) | $ (11,491) | $ (41,807) | $ (45,511) |
Net comprehensive income (loss) | $ (11,078) | $ (11,491) | $ (41,807) | $ (45,511) |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (41,807) | $ (45,511) |
Net change in operating assets and liabilities: | ||
Other assets | 6,617 | 5,566 |
Accounts payable and accrued expenses | 6,206 | 533 |
Net cash from (used for) continuing operations | (28,984) | (39,412) |
Cash flows from investing activities: | ||
Cash used for the purchase of marketable securities | 0 | (4) |
Proceeds from the sale of marketable securities | 19,278 | 42,000 |
Net cash from (used for) investing activities | $ 19,278 | $ 41,996 |
Cash flows from financing activities: | ||
Net cash from (used for) financing activities | ||
Net increase (decrease) in cash | $ (9,706) | $ 2,584 |
Cash | ||
Beginning of period | 10,726 | 9,643 |
End of period | $ 1,020 | $ 12,227 |
Organization
Organization | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Note 1 Organization Paragon Real Estate Equity and Investment Trust (the Company, Paragon, we, our, or us) is a Maryland shell corporation primarily focused on maintaining its corporate existence and SEC reporting history to enable it, in the future, to raise additional capital and make real estate investments. Future real estate investments may include acquisition and development of retail, office, office warehouse, industrial, multifamily, hotel, other commercial properties, acquisition of or merger with a REIT or real estate operating company and joint venture investments. Excess funds are invested in an insured deposit account at a securities brokerage firm. |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Note 2 Basis of Presentation Condensed Consolidated Financial Statement Presentation We have prepared the condensed consolidated financial statements without audit pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in the financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. However, we believe that the included disclosures are adequate to make the information presented not misleading. In our opinion, all adjustments (consisting solely of normal recurring items) necessary for a fair presentation of our financial position as of September 30, 2015, the results of our operations for the nine month periods ended September 30, 2015 and 2014, the three month periods ended September 30, 2015 and 2014, and of our cash flows for the nine month periods ended September 30, 2015 and 2014 have been included. The results of operations for interim periods are not necessarily indicative of the results for a full year. For further information, please see our consolidated financial statements and footnotes included in the Annual Report on Form 10-K for the year ended December 31, 2014. The Company presents its financial statements on a consolidated basis because it combines its accounts with a wholly-owned subsidiary that ceased operations in 2002. All significant intercompany transactions are eliminated in consolidation. Going Concern The financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the continued operations as a public company and paying liabilities in the normal course of business. The Company is being maintained as a corporate shell that is current in its SEC filings. Operations consist only of investment of cash in an insured deposit account at a securities brokerage firm at the present time, and previously, on a temporary basis, in publicly traded real estate companies, while management and the board evaluate real estate opportunities to put into the Company or decide to sell the entity to a party that needs a public shell. At September 30, 2015, our cash in the operating account was $1,020. The decrease in cash during the first nine months of 2015 was $9,706. In the first nine months of 2015, we transferred $19,278 to the operating account from the insured deposit account at the securities brokerage firm. The cash in both the operating account and the insured deposit account is available to pay expenses to keep the Company currently filed as a public company. Expenses, such as salaries and rent, have been eliminated so that the only expenses being incurred are to keep the Company current in its SEC filings, such as accounting and audit fees. Our ability to continue as a going concern will be dependent upon acquiring assets to generate cash flow because our investment of cash in an insured deposit account is our only revenue generating asset and will not generate enough cash flow to allow us to continue as a going concern. There can be no assurance that the Company will be able to acquire an operating company, be acquired by or merge with another company, raise capital or otherwise continue to exist as a going concern. Even if our management is successful in closing a transaction, investors may not value the transaction in the same manner as we did, and investors may not value the transaction as they would value other transactions or alternatives. Failure to obtain external sources of capital and complete a transaction will materially and adversely affect the Companys ability to continue operations and meet its obligations for the remainder of 2015 and in 2016. |
Marketable Securities
Marketable Securities | 9 Months Ended |
Sep. 30, 2015 | |
Marketable Securities [Abstract] | |
Marketable Securities | Note 3 Marketable Securities As of September 30, 2015, our marketable securities had a fair market value of $100 and was in the form of cash in an insured deposit account at the brokerage firm. During the nine month period ended September 30, 2015, the Company transferred $19,278 to the operating account, which is shown as proceeds from the sale of marketable securities on the cash flow statement, and interest income of less than $1 was deposited into the account at the brokerage firm. During the nine month period ended September 30, 2014, the Company transferred $42,000 to the operating account, which is shown as proceeds from the sale of marketable securities, and interest income of $4 is shown as cash used for the purchase of marketable securities on the cash flow statement. |
Loss Per Share
Loss Per Share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Loss Per Share | Note 4 Loss Per Share Net loss per weighted average common share outstandingbasic and diluted are computed based on the weighted average number of common shares outstanding for the period. The weighted average number of common shares outstanding for the nine month periods ended September 30, 2015 and September 30, 2014 were 405,096. Common share equivalents of 2,448,892 as of September 30, 2015 and September 30, 2014 include outstanding Class A Convertible Preferred Shares and Class C Convertible Preferred Shares and are not included in net loss per weighted average common share outstandingdiluted as they would be anti-dilutive. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 5 Fair Value Measurements Except for those assets and liabilities which are required by authoritative accounting guidance to be recorded at fair value in our Condensed Consolidated Balance Sheets, we have elected not to record any other assets or liabilities at fair value. No events occurred during the first nine months of 2015 which would require adjustment to the recognized balances of assets or liabilities which are recorded at fair value on a nonrecurring basis. The following table provides information on those assets and liabilities measured at fair value on a recurring basis. Fair Value Measurement Using Level 1 Level 2 Level 3 Marketable Securities September 30, 2015: Cash Insured Deposits $ 100 December 31, 2014: Cash Insured Deposits $ 19,378 The fair value of the marketable securities is based on the amount of cash in an insured deposit account at the brokerage firm. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis | The following table provides information on those assets and liabilities measured at fair value on a recurring basis. Fair Value Measurement Using Level 1 Level 2 Level 3 Marketable Securities September 30, 2015: Cash Insured Deposits $ 100 December 31, 2014: Cash Insured Deposits $ 19,378 |
Basis of Presentation (Details
Basis of Presentation (Details Narrative) - USD ($) | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accounting Policies [Abstract] | ||||
Cash | $ 1,020 | $ 12,227 | $ 10,726 | $ 9,643 |
Net decrease in cash | 9,706 | $ (2,584) | ||
Cash transferred to operating accounts from insured deposit accounts | $ 19,278 |
Marketable Securities (Details
Marketable Securities (Details Narrative) - USD ($) | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Fair value of marketable securities | $ 100 | $ 19,378 | |
Proceeds from the sale of marketable securities | 19,278 | $ 42,000 | |
Cash used for the purchase of marketable securities | 0 | $ 4 | |
Cash Insured Deposits [Member] | |||
Fair value of marketable securities | $ 100 |
Loss Per Share (Details Narrati
Loss Per Share (Details Narrative) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Weighted average number of common shares outstanding | 405,096 | 405,096 | 405,096 | 405,096 |
Common share equivalents excluded from EPS calculation due to anti-dilutive effect | 2,448,892 | 2,448,892 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities Total | $ 100 | $ 19,378 |
Cash Insured Deposits [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities Total | 100 | |
Cash Insured Deposits [Member] | Fair Value Inputs Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities Total | $ 100 | $ 19,378 |
Cash Insured Deposits [Member] | Fair Value Inputs Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities Total | ||
Cash Insured Deposits [Member] | Fair Value Inputs Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities Total |