hfe_10q

10-Q 1 hfe_10q.htm QUARTERLY REPORT hfe_10q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2020

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________to _________

001-39732

Commission File Number

HF Enterprises Inc.

(Exact name of registrant as specified in its charter)

NEVADA		83-1079861
State or other jurisdiction of incorporation or organization		(I.R.S. Employer Identification No.)

4800 Montgomery Lane, Suite 210, Bethesda, Maryland		20814
(Address of principal executive offices)		(Zip Code)

301-971-3940

Registrant’s telephone number, including area code

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common Stock, $0.001 par value	HFEN	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☐ No ☒

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of December 29, 2020, there were 8,570,000 shares of the registrant’s common stock $0.001 par value per share, issued and outstanding.

Table of Contents

PART I FINANCIAL INFORMATION	1

Item 1. Condensed Consolidated Financial Statements	F-1

Condensed Consolidated Balance Sheets (unaudited)	F-1

Condensed Consolidated Statements of Operations (unaudited)	F-2

Condensed Consolidated Statements of Stockholders’ Equity (unaudited)	F-3

Condensed Consolidated Statements of Cash Flows (unaudited)	F-5

Notes to Condensed Consolidated Financial Statements (unaudited)	F-6 - F-40

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations	2

Item 3. Quantitative and Qualitative Disclosure About Market Risk	14

Item 4. Controls and Procedures	14

PART II OTHER INFORMATION	14

Item 1. Legal Proceedings	14

Item 1A. Risk Factors	15

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	15

Item 3. Defaults Upon Senior Securities	15

Item 4. Mine Safety Disclosures	15

Item 5. Other Information	15

Item 6. Exhibits	15

SIGNATURES	16

Part I. Financial Information

HF Enterprises Inc.

Table of Contents

For the Nine Months Ended September 30, 2020 and 2019

Condensed Consolidated Balance Sheets	F-1

Condensed Consolidated Statements of Operations and Other Comprehensive Loss	F-2

Condensed Consolidated Statements of Stockholders’ Equity	F-3

Condensed Consolidated Statements of Cash Flows	F-5

Notes to Condensed Consolidated Financial Statements	F-6 - F-40

HF Enterprises Inc.

Condensed Consolidated Balance Sheets

	September 30, 2020	December 31, 2019
Assets:	( Unaudited)
Current Assets:
Cash	$8,754,202	$2,774,587
Restricted Cash	4,235,274	4,447,678
Account Receivables, Net	56,191	170,442
Other Receivables	369,888	681,677
Note Receivables - Related Parties	209,398	-
Prepaid Expenses	1,902,079	145,186
Inventory	63,455	116,698
Investment in Securities at Fair Value	59,745,321	3,015,698
Investment in Securities at Cost	236,756	200,128

SEC Form 1 filed