Mon, Aug 19, 9:43 PM (148 days ago)
For the quarter ended June 30, 2024, Hubilu Venture Corporation reported a revenue increase to $531,081, up 25% from $426,098 in the prior year, attributed to rising rental rates. However, the company experienced a net loss of $57,522, a significant decline from a net income of $1,639 in Q2 2023, primarily due to elevated operating expenses, including a 379% rise in general and administrative costs. Total liabilities increased to $20,389,073, reflecting ongoing debt financing for property acquisitions. Current liabilities surged to $3,287,392, resulting in a working capital deficit of $3,138,271. Cash reserves improved to $135,798 from $24,564, yet the company faces substantial liquidity risks and may require additional financing to sustain operations. The company acquired three properties in Q2 2024, contributing to a real estate portfolio valued at approximately $19 million. Despite increased revenues, heightened maintenance and interest expenses, along with a loss on debt extinguishment, have raised concerns about future profitability and operational continuity. The ongoing reliance on external financing and market conditions adds uncertainty to the outlook.