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SAN DIEGO, Oct. 05, 2022 (GLOBE NEWSWIRE) — Andrew Arroyo Real Estate Inc. (AARE), a mission-driven actual property and lending brokerage within the United States, introduced immediately that income for the mid-year 2022 was $4.8 million, up 15% year-over-year. Total property for the six months ended June 30, 2022 was $1.278 million, a rise of 89% from the 12 months ending December 31, 2021. AARE’s capital increase and diversified service mannequin contributed to year-over-year development for the six months ended June 30, 2022.
Net loss was $98,827 for the six months ended June 30, 2022 in comparison with a web achieve of $82,825 for the six months ended June 30, 2021. The majority of the online losses in Q1/Q2 of 2022 had been pushed by the continued bills associated to the IPO (preliminary public providing) and prices associated to hiring an govt administration workforce to facilitate the nationwide development.
The Company’s money place stays strong, with $625,000 in money and an unused $75,000 credit score line and $150,000 credit score revolver out there to spend money on the expansion of the business.
2022 Milestones & Q1/Q2 2022 Operational Updates
New Profit Center – Lending Department
During the second quarter of 2022, AARE developed a lending division. The lending division is doing business as Ensure Lending, an entirely owned subsidiary of AARE. This division is now established in California and actively funding loans regulated by the California Department of Real Estate.
“Our goal is to expand the lending department to the other 24 states we currently operate our real estate business. We believe we can generate significant additional revenue and profit for the Company by providing lending services to our clients,” stated Andrew Arroyo, founder, chairman, and CEO of AARE.
Derek Barksdale was appointed to steer the brand new division. Before becoming a member of AARE and Ensure Lending, Mr. Barksdale most not too long ago served as Manager Partner for Aligned Mortgage of San Diego, which was a subsidiary department for the retail lending establishment, American Pacific Mortgage. During his three-year tenure with Aligned/American Pacific Mortgage, Mr. Barksdale commissioned and managed the manufacturing, operations and help companies to fund of over 1,800 loans with a complete quantity of $917 million. Mr. Barksdale additionally has an in depth navy background in operations as a 21-year retired naval officer, with a further 4 years as a senior authorities govt, distinguished as a federal Chief of Police. Mr. Barksdale’s private-sector expertise started in 2011, because the Founder of Military Mutual, an actual property brokerage centered on offering actual property companies to veterans and their households. Military Mutual is now affiliated with AARE and doing its actual property business by our firm. Mr. Barksdale was provided a full-time worker place with us to supervise our new lending division. Mr. Barksdale accepted the employment contract and is now directing our workers in that division.
Outlook
“We continue to achieve revenue and total asset growth despite the changing economic conditions and aggressive interest rate hikes by the Fed,” stated Andrew Arroyo, founder, chairman, and CEO of AARE. “The Fed’s goal to curb inflation is beginning to take its toll on the real estate and lending industry as a whole. Over tightening too quickly could lead to collateral damage for both consumers and industry professionals. To that end, we have systems in place that helped us through previous rising interest rate environments, recessions, and unusual market conditions. Our salesforce is ready to navigate a change in the market or a potential recession.”
3Q-4Q 2022 and FY2022 Outlook:
- FY2022:
- FY2022 Revenue of $8.5 million to $10 million
- FY2022 Gross Profit of $1 million to $1.5 million
- 3Q-4Q 2022:
- 3Q-4Q 2022 Revenue of $3.5 million to $5 million
- 3Q-4Q 2022 Gross Profit of $500,000 to $750,000
2023-24 Targets:
- Continued income development between 10-30%
- Continued gross revenue and complete asset development between 10-30%
- Continued reinvestment of web revenue and free money move to gas our development
Additional data will be discovered within the firm’s 1-SA SEC submitting and presentation on the Investor Relations part of the AARE web site at https://aare.com/investor-relations/.
Safe Harbor Statement
This press launch consists of forward-looking statements, that are statements aside from statements of historic details, and statements sooner or later tense. These statements embody, however should not restricted to, statements relating to our future efficiency, together with anticipated monetary outcomes for the third and fourth quarter and full 12 months of 2022, long-term monetary targets for full 12 months of 2023-24, and our steady skill to attain constructive Adjusted EBITDA. Forward-looking statements are primarily based upon varied estimates and assumptions, in addition to data recognized to us as of the date of this press launch, and are topic to dangers and uncertainties, together with however not restricted to: common financial circumstances (together with inflation and rates of interest), the well being of the U.S. actual property business, and dangers typically incident to the possession of residential and business actual property, together with seasonal and cyclical tendencies; our skill to constantly innovate, enhance and increase our platform; our skill to draw new brokers and retain present brokers or enhance brokers’ utilization of our platform; our skill to increase our brokerage and adjoining companies companies; our skill to supply further adjoining companies; our skill to attain anticipated advantages from our mortgage business, Ensure; our fast development and price of development; our web losses and talent to attain or maintain profitability sooner or later; any future impression of the continued COVID-19 pandemic on our business; our skill to compete profitable within the markets during which we function; the impact of financial insurance policies of the federal authorities and its companies; any decreases in our gross fee revenue or the share of commissions that we gather; fluctuation of our quarterly outcomes and different working metrics; our skill to efficiently full acquisitions and combine goal corporations; the impact of the claims, lawsuits, authorities investigations and different proceedings that we’re topic to on occasion; our skill to guard our mental property rights; and different common market, political, financial, and business circumstances. Additionally, these forward-looking statements, notably our monetary outlook and long-term targets, contain dangers, uncertainties and assumptions, together with these associated to the impacts of COVID-19 and inflationary stress on our purchasers’ spending selections. Significant variation from the assumptions underlying our forward-looking statements might trigger our precise outcomes to fluctuate, and the impression might be vital. Accordingly, precise outcomes might differ materially from these predicted or implied or such uncertainties might trigger antagonistic results on our outcomes. Reported outcomes shouldn’t be thought of as a sign of future efficiency.
Additional dangers and uncertainties that would have an effect on our monetary outcomes are included underneath the caption “Risk Factors” in our Regulation A+ submitting on Form 1-A certified with the SEC on October 12, 2021, which is offered on the Investor Relations web page of our web site at https://aare.com/investor-relations/ and on the SEC web site at www.sec.gov. Additional data may also be set forth in our Semi Annual Report on Form 1-SA for the six months ended June 30, 2022 which was filed on September 30th, 2022 with the SEC. All forward-looking statements contained herein are primarily based on data out there to us as of the date hereof, and we don’t assume any obligation to replace these statements on account of new data or future occasions. Undue reliance shouldn’t be positioned on the forward-looking statements on this press launch.
About AARE
Founded in 2004, AARE is a nationwide actual property brokerage and lending agency licensed and working in 24 states. The company offers a wide range of actual property companies together with residential, business, property administration, syndication, financing, and business alternatives. AARE developed GENEROUS CAPITALISM®, an revolutionary business mannequin that promotes the significance of company social accountability by beneficiant business practices. This mannequin units precedent for public companies by making charitable contributions from top-line gross income to positively impression native communities and world initiatives.
For extra data, please go to www.AARE.com.
Investor Contact
John Windscheffel
[email protected]
Media Contact
David Malme
[email protected]
ANDREW ARROYO REAL ESTATE, INC.
BALANCE SHEETS
June 30, 2022 (unaudited) and December 31, 2021 (audited)
| June 30, 2022 |
Dec. 31, 2021 |
|||||||
| ASSETS | ||||||||
| Current Assets | ||||||||
| Cash and Cash Equivalents (Note 1) | $ | 624,948 | $ | 3,655 | ||||
| Accounts Receivable | $ | 50,840 | $ | – | ||||
| Other Current Assets | ||||||||
| Other Current Assets | $ | 241,038 | $ | 314,179 | ||||
| Total Current Assets | $ | 916,826 | $ | 317,833 | ||||
| Property and tools, web (Note 1) | $ | 52,767 | $ | 56,777 | ||||
| Other Assets | ||||||||
| Total Other Assets | $ | 308,342 | $ | 302,174 | ||||
| TOTAL ASSETS | $ | 1,277,936 | $ | 676,784 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current Liabilities | ||||||||
| Accounts Payable | $ | 79,348 | 19,050 | |||||
| Credit Cards | $ | 40,216 | $ | 84,793 | ||||
| Line of Credit (Note 6) | $ | 0 | $ | 74,058 | ||||
| Current Portion of Long Term Debt | $ | 111,737 | $ | 111,737 | ||||
| Other Current Liabilities | $ | 218,299 | $ | 282,572 | ||||
| Total Current Liabilities | $ | 449,600 | $ | 572,211 | ||||
| Long Term Liabilities | ||||||||
| Notes Payable (Note 6) | $ | 250,522 | $ | 237,988 | ||||
| Total Liabilities | $ | 700,122 | $ | 810,198 | ||||
| Equity | ||||||||
| Common Stock, $.001 par worth 25,000,000 shares approved, 3,180,460 issued and excellent as of June 30, 2022 and three,000,000 issued and excellent as of December 31, 2021; | $ | 810,055 | $ | 1,000 | ||||
| Series A Convertible Preferred Stock, ($.001 par worth; 5,000,000 shares approved, and a couple of,000,000 excellent as of June 30, 2022 and December 31, 2021) | ||||||||
| Additional paid-In capital | $ | 0 | $ | 583,514 | ||||
| Shareholder Contribution/(Distribution) | $ | 0 | $ | (66,220 | ) | |||
| Retained Earnings/(Deficit) | $ | (232,241 | ) | $ | (651,708 | ) | ||
| Total stockholders’ fairness | $ | 577,814 | $ | (133,414 | ) | |||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 1,277,936 | $ | 676,784 | ||||
ANDREW ARROYO REAL ESTATE, INC.
STATEMENT OF OPERATIONS
Six Months Ended June 30, 2022 and 2021 (unaudited)
| 2022 | 2021 | |||||||
| Income from Operations | $ | 4,830,523 | $ | 4,194,549 | ||||
| Cost of Sales: | ||||||||
| Charitable Contributions | $ | 49,620 | $ | 42,630 | ||||
| Coaching Fees | $ | 2,988 | $ | 6,932 | ||||
| Salaries & Wages | $ | 5,286 | $ | 22,157 | ||||
| Cost of Sales – Agents | $ | 3,737,130 | $ | 3,064,771 | ||||
| Cost of Sales – TC | $ | 100,322 | $ | 96,704 | ||||
| Cost of Sales- Material/Supply | $ | 30,524 | $ | 38,635 | ||||
| Property Management Fees Paid | $ | 76,246 | $ | 67,556 | ||||
| Recruiting Bonuses | $ | – | $ | – | ||||
| Referral Fees | $ | 106,269 | $ | 143,150 | ||||
| Staging & Moving Operations | $ | 1,565 | $ | 16,737 | ||||
| Total Cost of Sales | $ | 4,109,950 | $ | 3,499,273 | ||||
| Gross Profit | $ | 720,573 | $ | 695,275 | ||||
| General and administrative bills | $ | 848,790 | $ | 601,131 | ||||
| Profit from Operations | $ | (128,217 | ) | $ | 94,145 | |||
| Other Income/(Expense) | $ | 33,645 | $ | (11,320 | ) | |||
| Profit /(Loss) earlier than revenue tax profit | $ | (94,572 | ) | $ | 84,672 | |||
| Income Tax Provision (Note 7) | $ | 4,255 | $ | 1,847 | ||||
| Net Profit | $ | (98,827 | ) | $ | 82,825 | |||
ANDREW ARROYO REAL ESTATE, INC.
STATEMENT OF STOCKHOLDERS’ EQUITY
Six Months Ended June 30, 2022 (unaudited) and December 31, 2021 (audited)
| COMMON STOCK |
PAID IN CAPITAL |
RETAINED EARNINGS | TOTAL | |||||||||||||
| Balance – December 31, 2020 | $ | 1,000 | $ | 482,590 | $ | (735,770 | ) | $ | (252,180 | ) | ||||||
| Net Income / (Loss) | $ | – | $ | – | $ | (67,195 | ) | $ | (67,195 | ) | ||||||
| Stockholder Contributions / (Distributions) | $ | – | $ | 482,590 | $ | 668,551 | $ | 185,961 | ||||||||
| Balance – December 31, 2021 | $ | 1,000 | $ | – | $ | (134,414 | ) | $ | (133,414 | ) | ||||||
| Net Income / (Loss) | $ | – | $ | – | $ | (98,827 | ) | $ | (98,827 | ) | ||||||
| Stockholder Contributions / (Distributions) | $ | 809,055 | – | $ | 1,000 | $ | 810,055 | |||||||||
| Balance – June 30, 2022 | $ | 810,055 | $ | – | $ | (232,241 | ) | $ | 577,814 | |||||||
ANDREW ARROYO REAL ESTATE, INC.
STATEMENT OF CASH FLOWS
Six Months Ended June 30, 2022 and 2021 (unaudited)
| 2022 | 2021 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net Income (Loss) | (98,827 | ) | 82,825 | |||||
| Adjustments to reconcile web Income to web money flows | ||||||||
| offered by working actions: | ||||||||
| Deferred Income Taxes | – | – | ||||||
| Depreciation & Amortization | 16,037 | 9,472 | ||||||
| Gain on Disposal of Assets | 50,840 | |||||||
| Changes in property and liabilities | ||||||||
| Changes in Accounts Receivable | (50,840 | ) | – | |||||
| Changes in Other Receivables | – | 7,828 | ||||||
| Changes in pay as you go bills & different | 73,141 | 24,095 | ||||||
| Changes in accounts payable | 60,298 | – | ||||||
| Changes in Other Payables | (109,535 | ) | (30,805 | ) | ||||
| Income Taxes Payable | – | – | ||||||
| Changes in accrued bills | 684 | 2,773 | ||||||
| NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | (109,042 | ) | 96,188 | |||||
| CASH FLOWS PROVIDED BY (USED FOR) INVESTING ACTIVITIES: | ||||||||
| Net Purchases of property and tools | 0 | (6,746 | ) | |||||
| Net Inflows – Disposal of kit | 0 | |||||||
| Net Purchases of intangible property | (18,196 | ) | – | |||||
| Net money flows offered by (utilized in) Investing actions: | (18,196 | ) | (6,746 | ) | ||||
| CASH FLOWS PROVIDED BY (USED FOR) FINANCING ACTIVITIES: | ||||||||
| Net proceeds (repayments) on borrowings | 12,535 | 6,581 | ||||||
| Changes in Line of Credit | (74,058 | ) | (7,020 | ) | ||||
| Dividend Distribution | 999 | (10,827 | ) | |||||
| Loan from Shareholder | – | – | ||||||
| Proceeds (re-purchase) for Equity Investment | 809,055 | – | ||||||
| NET CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES: | 748,531 | (11,266 | ) | |||||
| Net Increase (Decrease) in money and money equivalents | 621,293 | 78,176 | ||||||
| CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 3,655 | 38,701 | ||||||
| CASH AND CASH EQUIVALENTS END OF PERIOD | $ | 624,948 | $ | 116,877 | ||||
