ALPC Alpha Investment Inc (CE)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

(Mark One)

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

 

For the quarterly period ended June 30, 2023

 

OR

 

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

 

For the transition period from ________to_________

 

Commission file number 333-198772

 

(Exact name of registrant as specified in its charter)

 

 

(Former Name of Registrant as Specified in its Charter)

 

Delaware		90-0998139
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

 

200 East Campus View Blvd., Suite 200

Columbus, OH  43235

(Address of principal executive offices) (zip code)

 

305-704-3294

(Registrant's telephone number, including area code)

 

The Registrant does not have any securities registered pursuant to Section 12(b) of the Exchange Act. 

 

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.

 

x Yes o 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.)

 

x Yes o No

 

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

 

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
None

 

 

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See 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     o		Accelerated filer     o
Non-accelerated filer     o		Smaller reporting company     x
		Emerging growth Company    o

 

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. o

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

 

o Yes x No

 

Indicate the number of shares outstanding of each of the registrant's classes of common stock as of the latest practicable date.

 

Class		Outstanding at August 20, 2023
Common Stock, par value $0.0001		11,224,401 shares

 

Documents incorporated by reference: None

 

 

 

 

 

 

 

 

  

 

TABLE OF CONTENTS

 

PART I - FINANCIAL INFORMATION

 

	Page No.
Item 1. Financial Statements.
Condensed Consolidated Balance Sheets as of June 30, 2023 (unaudited) and December 31, 2022	5
Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2023 and 2022 (unaudited)	6
Condensed Consolidated Statement of Changes in Stockholders’ Equity for the Three and Six Months Ended June 30, 2023 and 2022 (unaudited)	7
Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2023 and 2022 (unaudited)	8
Notes to Unaudited Condensed Consolidated Financial Statements	9 – 16
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.	17 – 18
Item 3. Quantitative and Qualitative Disclosures About Market Risk.	18
Item 4. Controls and Procedures.	19

 

PART II - OTHER INFORMATION

 

Item 1. Legal Proceedings.	20
Item 1A. Risk Factors.	20
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.	20
Item 3. Defaults Upon Senior Securities.	20
Item 4. Mine Safety Disclosures.	20
Item 5. Other Information.	20
Item 6. Exhibits.	20

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

 

This report includes forward-looking statements that relate to future events or our future financial performance and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Words such as, but not limited to, “believe,” “expect,” “anticipate,” “estimate,” “intend,” “plan,” “targets,” “likely,” “aim,” “will,” “would,” “could,” and similar expressions or phrases identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and future events and financial trends that we believe may affect our financial condition, results of operation, business strategy and financial needs. Forward-looking statements include, but are not limited to, statements about:

 

·

our lack of significant revenues and history of losses,

 

·

our ability to continue as a going concern,

 

·

our ability to raise additional working capital as necessary,

 

·

our ability to satisfy our obligations as they become due,

 

·

the failure to successfully commercialize our product or sustain market acceptance,

 

·

the reliance on third party agreements and relationships for development of our business,

 

·

the control exercised by our management,

 

·

the impact of government regulation on our business,

 

·

our ability to effectively compete,

 

·

the possible inability to effectively protect our intellectual property,

 

·

the lack of a public market for our securities and the impact of the penny stock rules on trading in our common stock should a public market ever be established.

 

You should read thoroughly this report and the documents that we refer to herein with the understanding that our actual future results may be materially different from and/or worse than what we expect. We qualify all of our forward-looking statements by these cautionary statements including those made in this report, in Part I. Item 1A. Risk Factors appearing in our Annual Report on Form 10-K for the year ended December 31, 2021 and our other filings with the Securities and Exchange Commission. Other sections of this report include additional factors which could adversely impact our business and financial performance. New risk factors emerge from time to time and it is not possible for our management to predict all risk factors, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Except for our ongoing obligations to disclose material information under the Federal securities laws, we undertake no obligation to release publicly any revisions to any forward-looking statements, to report events or to report the occurrence of unanticipated events. These forward-looking statements speak only as of the date of this report, and you should not rely on these statements without also considering the risks and uncertainties associated with these statements and our business.

 

OTHER PERTINENT INFORMATION

 

Unless specifically set forth to the contrary, when used in this report the terms “the “Company,” “we,” “our,” “us,” and similar terms refers to Alpha Investment, Inc.

ITEM 1. FINANCIAL STATEMENTS

 

Alpha Investment Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

 

		As of				As of
		June 30,				December 31,
		2023				2022
ASSETS
Current Assets:
Cash		$	465			$	—
Total Current Assets			465				—
Other Assets:
Loans receivable - related party, net of discounts			—				—
Loans receivable, net of discounts			—				—
Interest receivable			—				—
Total Other Assets			—				—
Property and Equipment, net:
Furniture and Equipment, net			—				—
Total Property and Equipment			—				—
TOTAL ASSETS		$	465			$	—
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable		$	680,116			$	602,416
Accrued management fees - related party			525,000				450,000
Distribution payable			520,000				460,000
Notes payable - short-term			46,629				39,279
Notes payable - related party			244,871				231,747
Judgments payable			2,662,147				2,518,000
Total Current Liabilities			4,678,763				4,301,442
Total Liabilities			4,678,763				4,301,442
Temporary Equity:
Series 2018 Convertible Preferred Stock ($0.0001 par value), net of discounts of $104,637 and $116,481, respectively, 100,000 shares authorized; 36,667 shares issued and outstanding (liquidation value: $500,000) (See Note 8)			445,942				434,098
			445,942				434,098
Stockholders' Equity:
Preferred stock ($0.0001 par value), 20,000,000 shares
Series A Convertible Preferred stock ($15.00 par value), 100,000 shares authorized; 1,167 shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively			17,505				17,505
Series AA Convertible Preferred stock ($0.0001 par value), 100,000 shares authorized, 100,000 and 100,000 issued and outstanding as of June 30, 2023 and December 31, 2022, respectively			10				10
Common stock, ($0.0001 par value), 100,000,000 shares authorized; 11,224,401 and 9,724,401 shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively			1,123				973
Additional paid-in capital			6,030,750				6,012,900
Accumulated deficit			(10,745,116	)			(10,398,416	)
Total Equity			(4,695,728	)			(4,367,028	)
Non-controlling interest in variable interest entities			(428,512	)			(368,512	)
Total Stockholders' Equity			(5,124,240	)			(4,735,540	)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$	465			$	—

Series A Convertible Preferred Stock 

See notes to unaudited condensed consolidated financial statements.

 

ALPHA INVESTMENT INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

		Three Months				Three Months				Six Months				Six Months
		Ended				Ended				Ended				Ended
		June 30, 2023				June 30, 2022				June 30, 2023				June 30, 2022
Income:
Net investment income - related parties		$	—			$	—			$	—			$	—
Net investment income			—				—				—				—
Total Income			—				—				—				—
General and Administrative Expenses:
Management fee - related party			37,500				37,500				75,000				75,000
Administrative expenses			25,035				60,799				50,058				122,666
Professional fees			12,500				83,000				45,177				103,432
Total General and Administrative Expenses			75,035				181,299				170,235				301,098
Loss from Operations			(75,035	)			(181,299	)			(170,235	)			(301,098	)
Other Expense:
Other income/expense			—				(2,518,000	)			(144,147	)			(2,518,000	)
Interest expense, net			(10,237	)			(6,563	)			(20,476	)			(13,125	)
Total Other Expense			(10,237	)			(2,524,563	)			(164,623	)			(2,531,125	)
Net Loss		$	(85,272	)		$	(2,705,862	)		$	(334,856	)		$	(2,832,223	)
Amortization of discounts on Series 2018 preferred stock and redeemable common stock			(5,922	)			(5,922	)			(11,844	)			(11,844	)
Net Income Attributable to Non-controlling Interests			—				—				—				—
Net Loss Attributable to Common Stockholders		$	(91,194	)		$	(2,711,784	)		$	(346,700	)		$	(2,844,068	)
Basic and Diluted Loss Per Share		$	(0.01	)		$	(0.28	)		$	(0.04	)		$	(0.29	)
Basic and Diluted Weighted Average Number of Common Shares Outstanding			10,565,060				9,724,401				10,147,053				9,724,401

 

 

See notes to unaudited condensed consolidated financial statements.

 

 

 

 

 

Alpha Investment Inc.

Condensed Consolidated Statement of Changes in Stockholders' Equity (Deficit)

For the Three and Six Months Ended June 30, 2023 and 2022

 

										Series A								Series AA												Non-
		Common Stock								Preferred Stock								Preferred Stock								Paid-in				controlling				Accumulated
		Shares				Amount				Shares				Amount				Shares				Amount				Capital				Interest				Deficit				Total
Balance, December 31, 2021			9,724,401			$	973				1,167			$	17,505				100,000			$	10			$	5,939,250			$	(248,512	)		$	(7,274,955	)		$	(1,565,729	)
Stock exchange							—				—				—				—				—				—				—				—				—
Stockholder contribution			—				—				—				—				—				—				32,600				—				—				32,600
Distributions due to non-controlling interest			—				—				—				—				—				—				—				(30,000	)			—				(30,000	)
Amortization of discount on redeemable preferred stock			—				—				—				—												—				—				(5,922	)			(5,922	)
Net loss			—				—				—				—				—				—				—								(126,361	)			(126,361	)
Balance, March 31, 2022			9,724,401			$	973				1,167			$	17,505				100,000			$	10			$	5,971,850			$	(278,512	)		$	(7,407,238	)		$	(1,695,412	)
Stock exchange			—				—				—				—				—				—				—				—				—				—
Stockholder contribution			—				—				—				—				—				—				41,050				—				—				41,050
Distributions due to non-controlling interest			—				—				—				—				—				—				—				(30,000	)			—				(30,000	)
Amortization of discount on redeemable preferred stock			—				—				—				—												—				—				(5,922	)			(5,922	)
Net loss			—				—				—				—				—				—				—								(2,705,862	)			(2,705,862	)
Balance, June 30, 2022			9,724,401			$	973				1,167			$	17,505				100,000			$	10			$	6,012,900			$	(308,512	)		$	(10,119,022	)		$	(4,396,146	)

 

										Series A								Series AA												Non-
		Common Stock								Preferred Stock								Preferred Stock								Paid-in				controlling				Accumulated
		Shares				Amount				Shares				Amount				Shares				Amount				Capital				Interest				Deficit				Total
Balance, December 31, 2022			9,724,401			$	973				1,167			$	17,505				100,000			$	10			$	6,012,900			$	(368,512	)		$	(10,398,416	)		$	(4,735,540	)
Stockholder contribution			—				—				—				—				—				—				8,250				—				—				8,250
Distributions due to non-controlling interest			—				—				—				—				—				—				—				(30,000	)			—				(30,000	)
Amortization of discount on redeemable preferred stock			—				—				—				—				—				—				—				—				(5,922	)			(5,922	)
Net loss			—				—				—				—				—				—				—								(249,584	)			(249,584	)
Balance, March 31, 2023			9,724,401			$	973				1,167			$	17,505				100,000			$	10			$	6,021,150			$	(398,512	)		$	(10,653,922	)		$	(5,012,796	)
Sale of common stock			—				150				—				—				—				—				1,350				—				—				1,500
Stockholder contribution			—				—				—				—				—				—				8,250				—				—				8,250
Distributions due to non-controlling interest			—				—				—				—				—				—				—				(30,000	)			—				(30,000	)
Amortization of discount on redeemable preferred stock			—				—				—				—				—				—				—				—				(5,922	)			(5,922	)
Net loss			—				—				—				—				—				—				—								(85,272	)			(85,272	)
Balance, June 30, 2023			9,724,401			$	1,123				1,167			$	17,505				100,000			$	10			$	6,030,750			$	(428,512	)		$	(10,745,116	)		$	(5,124,240	)

Common Stock

Series A Preferred Stock

Series AA Preferred Stock

Paid-In Capital

Non-Controlling Interest

Accumulated Deficit

 

See notes to unaudited condensed consolidated financial statements.

 

 

ALPHA INVESTMENT INC

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

		Six Months				Six Months
		Ended				Ended
		June 30,				June 30,
		2023				2022
Cash Flows from Operating Activities:
Net loss		$	(334,856	)		$	(2,832,223	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation Expense			—				158
Accretion of origination fee income			—				—
Amortization of deferred loan costs			—				—
Payroll protection loan forgiveness			—				—
Changes in operating assets and liabilities:
Increase in judgments payable			144,147				1,518,000
Increase in settlements payable			—				1,000,000
Increase in interest receivable			20,474				—
Increase in accrued management fees - related party			75,000				75,000
Decrease in accounts payable and accrued expenses			77,700				143,652
Increase in notes payable - related party							13,125
Net cash used in operating activities			(17,535	)			(82,288	)
Cash Flows from Investing Activities:
Net cash from investing activities			—				—
Cash Flows from Financing Activities:
Proceeds from short term loan							35,000
Proceeds from sale of stock			1,500
Proceeds from stockholder contribution			16,500				73,650
Net cash provided by (used in) financing activities			18,000				108,650
Net increase (decrease) in cash			465				26,362
Cash and restricted cash at beginning of year			—				588
Cash and restricted cash at end of year		$	465			$	26,950
Supplemental Disclosure of Cash Flow Information:
Cash paid during year for:
Interest		$	—			$	—
Income Taxes		$	—			$	—
Schedule of Non-Cash Investing and Financing Activities:
Distribution due to non-controlling interest		$	60,000			$	60,000
Amortization of discount on redeemable preferred stock		$	11,844			$	11,844

 

See notes to unaudited condensed consolidated financial statements.

 

 

ALPHA INVESTMENT INC

NOTES TO CONDENSED FINANCIAL STATEMENTS

 

NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS

 

Alpha Investment Inc, formerly GoGo Baby, Inc. (the “Company”) was incorporated on February 22, 2013 under the laws of the State of Delaware to develop, create, manufacture and market, toys for small children which would be designed to attach to car seats and amuse and entertain children during a drive, without distracting the attention of the driver. The Company, however, encountered significant constraints in raising sufficient capital to fully implement its business plan.

 

To better reflecting management’s shifted focus of the Company’s business to real estate and other commercial lending, on March 30, 2017, the Company filed a Certificate of Amendment to its Certificate of Incorporation with the Delaware Secretary of State changing its name from “Gogo Baby, Inc.” to “Alpha Investment Inc.”. The name change and a corresponding change in the Company’s OTC markets trading symbol from GGBY to ALPC received approval from FINRA and became effective as of April 19, 2017.

 

On March 11, 2019, the Company, through Alpha Mortgage Notes I, LLC (the “SPV”) entered into an operating agreement with Alameda Partners LLC, a Utah limited liability company (“Alameda Partners”). Alameda Partners acquired a ten percent (10%) equity interest in the SPV in exchange for a payment of $1,000,000 to the Company and is the managing member of the SPV. The capital is intended for use in implementing the Company’s strategy of acquiring commercial real estate performing notes and support other related growth initiatives and assets acquisitions for the Company The principals of Alameda Partners have significant long-term of experience in the commercial real estate industry as property developers, owners, and managers and currently hold over $50 million in commercial real estate assets. Pursuant to the operating agreement for the SPV, Alameda Partners is entitled to monthly distributions in cash or stock equal to $10,000.  As of June 30, 2022, the SPV has not completed any transactions. On July 30, 2020, Alpha entered a joint venture transaction with Parsons Energy Group, LLC (“Parsons”) with respect to leasehold mining rights then held by Parsons on approximately 1,200 acres located in Independence, Wisconsin.

 

On July 21, 2021, the Company and Parsons entered into an Unwinding Agreement (the “Unwinding Agreement“), pursuant to which the joint venture was unwound. Under the Unwinding Agreement, Parsons returned the Series 2020 Preferred Shares to the Company for cancellation and the Company assigned the Interest in Legacy Sand back to Parsons and exchanged mutual releases.

 

NOTE 2 – GOING CONCERN

 

Future issuances of the Company’s equity or debt securities will be required for the Company to continue to finance its operations and continue as a going concern. The Company’s present revenues are insufficient to meet operating expenses. The financial statements of the Company have been prepared assuming that the Company will continue as a going concern, which contemplates, among other things, the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has an accumulated deficit of $10,745,116 as of June 30, 2023. During the six months ended June 30, 2023, the Company used $17,535 of cash in operations and incurred a net loss of $334,856. The Company requires capital for its contemplated operational and marketing activities to take place. The Company's ability to raise additional capital through the future issuances of common stock is unknown. Securing additional financing, the successful development of the Company's contemplated plan of operations, and its transition, ultimately, to the attainment of profitable operations are necessary for the Company to continue operations. The ability to successfully resolve these factors raise substantial doubt about the Company's ability to continue as a going concern. The financial statements of the Company do not include any adjustments that may result from the outcome of these aforementioned uncertainties.

 

NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of Presentation

 

In the opinion of the Company, the accompanying unaudited condensed consolidated financial statements are prepared in accordance with instructions for Form 10-Q, include all adjustments (consisting only of normal recurring accruals) which we considered as necessary for a fair presentation of the results for the periods presented. Certain information and footnote disclosures normally included in the financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. It is suggested that these condensed financial statements be read in conjunction with the Company's Annual Report on Form 10-K for the year ended December 31, 2022. The results of operations for the six months ended June 30, 2023 are not necessarily indicative of the results to be expected for future periods or the full year.

 

9

 

 

Principles of Consolidation

 

The condensed consolidated financial statements include the accounts of the Company, Alpha Mortgage Notes I, LLC, which is controlled by the Company through its 90% ownership interest, and Paris Med CP-LLC (“Paris Med”), variable interest entity for which the Company is deemed to be the primary beneficiary, (collectively, the “Company”). All significant intercompany balances and transactions have been eliminated in consolidation.

 

Use of Estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods presented. The Company is required to make judgments and estimates about the effect of matters that are inherently uncertain. The Company regularly evaluates estimates and assumptions related to the useful life and recoverability of long-lived assets, deferred income tax asset valuations and loss contingences. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. Although, we believe our judgments and estimates are appropriate, actual future results may be different; if different assumptions or conditions were to prevail, the results could be materially different from our reported results.

 

Cash and Cash Equivalents

 

Cash equivalents include short-term, highly liquid investments with maturities of three months or less at the time of acquisition. As of June 30, 2023, the Company has $465 in cash and no cash equivalents.

 

Loans Receivable, net and Allowance for Losses

 

The Company records its investments in loans receivable at the lower of cost or fair value. Costs are the gross loan receivables less unamortized costs of issuance and deferred origination fees. Origination fees collected at the time of investment are recorded against the loans receivable and amortized into net interest income over the lives of the related loans. Issuance costs incurred are capitalized along with the initial investment and amortized against net interest income over the lives of the related loans.

 

When a loan receivable is placed on non-accrual status, the related interest receivable is charged to bad debt of the current period. If a non-accrual loan is returned to accrual status, the accrued interest existing at the date the residential loan is placed on non-accrual status and interest during the non-accrual period are recorded as interest income as of the date the loan no longer meets the non-accrual criteria.

 

The Company maintains an allowance for loan losses on its investments in real estate loans receivable for estimated credit impairment.  Management’s estimate of losses is based on several factors including the types and dollar amounts of loans in the portfolio, adverse situations that may affect the borrower’s ability to repay, prevailing economic conditions and the underlying collateral securing the loan.  Additions to the allowance are provided through a charge to earnings and are based on an assessment of certain factors, which may indicate estimated losses on the loans.  Actual losses on loans are recorded first as a reduction to the allowance for loan losses.  Generally, subsequent recoveries of amounts previously charged off are recognized as income.

 

Estimating allowances for loan losses requires significant judgment about the underlying collateral, including liquidation value, condition of the collateral, competency and cooperation of the related borrower and specific legal issues that affect loan collections or taking possession of the property on an individual loan receivable basis.  Management has established an allowance of $1,633,380 as of June 30, 2023 and December 31, 2022.

 

Property and Equipment

 

Property and equipment are stated at cost. Equipment and fixtures will be depreciated using the straight-line method over the estimated asset lives, 5 years. As at June 30, 2023 and December 31, 2022, the Company recorded $0 in property and equipment, and recorded $0  and $158 in depreciation expense at June 30, 2023 and 2022, respectively.

 

10

 

Income Taxes

 

The Company accounts for its income taxes in accordance with FASB Accounting Standards Codification (“ASC”) No. 740, "Income Taxes". Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax balances. Deferred tax assets and liabilities are measured using enacted or substantially enacted tax rates expected to apply to the taxable income in the years in which those differences are expected to be recovered or settled. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the date of enactment or substantive enactment.

 

Accounting for Uncertainty in Income Taxes

 

The Company applies the provisions of ASC Topic 740-10-25, Income Taxes – Overall – Recognition (“ASC Topic 740-10-25”) with respect to the accounting for uncertainty of income tax positions. ASC Topic 740-10-25 clarifies the accounting for uncertainty in income taxes recognized in a company’s financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740-10-25 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. As of June 30, 2023, tax years since 2014 remain open for IRS audit. The Company has received no notice of audit from the Internal Revenue Service for any of the open tax years.

 

Revenue Recognition and Investment Income

 

Origination fees collected at the time of investment are recorded against the loans receivable and amortized into net interest income over the lives of the related loans. Issuance costs incurred are capitalized along with the initial investment and amortized against net interest income over the lives of the related loans. The Company records interest income in accordance with ASC subtopic 835-30 "Imputation of Interest", using the effective interest method. The Company has no income for the six months ended June 30, 2023 and 2022.

 

When a loan is placed on non-accrual status, the related interest receivable is charged to bad debt of the current period. If a non-accrual loan is returned to accrual status, the accrued interest existing at the date the residential loan is placed on non-accrual status and interest during the non-accrual period are recorded as interest income as of the date the loan no longer meets the non-accrual criteria.

 

The Company suspends recognizing interest income when it is probable that the Company will be unable to collect all payments according to the contractual terms of the underlying agreements. Management considers all information available in assessing collectability. Collectability is measured on a receivable-by-receivable basis by either the present value of estimated future cash flows discounted at the effective rate, the observable market price for the receivable or the fair value of the collateral if the receivable is collateral dependent. Large groups of smaller balance homogeneous receivables, such as pre-settlement funding transactions, are collectively assessed for collectability. Receivables, including those arising from the sale of loan origination services, is charged off when in the Company's judgment, the receivable or portion of the receivable is considered uncollectible.

 

Payments received on past due receivables and finance receivables the Company has suspended recognizing interest income on are applied first to principal and then to accrued interest. Interest income on past due receivables and finance receivables, if received, is recorded using the cash basis method of accounting. Additionally, the Company generally does not resume recognition of interest income once it has been suspended. At December 31, 2022, the Company evaluated the collectability of its loans and lines of credit receivable, in light of economic conditions during the Covid-19 pandemic, established an allowance account to bring these to $0. Accordingly, there is no imputed interest receivable for the six months ended June 30, 2023.

 

11

 

Variable Interest Entity

Paris Med 

Omega Commercial Finance Corp.

Variable Interest Entity

The Company holds a 10% interest in Paris Med, of which the remaining 90% interest is held by Omega.  Through December 31, 2021, the Company has provided 100% of the funding to Paris Med, which has provided a construction loan to a third party.  This loan receivable is the sole asset of Paris Med.  The Company determined that Paris Med was a variable interest entity based on various qualitative and quantitative factors including but not limited to: 1) financing of Paris Med’s sole asset was received by the Company, which is disproportionate to the Company’s ownership interest and 2) the Company and Omega, a related party, organized the entity for the purpose of facilitating the Company’s activities.  As of June 30, 2023, the Company is considered the primary beneficiary because it has provided substantially all of its financial support and is the only party at risk.  As of December 31, 2022, Paris Med has total assets of $0  because  the Company established a full reserve against this VIE until such time as the loan is repaid.  See Note 4.  For the six months ended June 30, 2023, Paris Med had no activity. At December 31 2022 and June 30, 2023, the Company established a full reserve against this VIE until such time as the loan is repaid.

 

Fair Value

 

The carrying amounts reported in the balance sheet for cash, accounts payable and notes payable approximate their estimated fair market value based on the short-term maturity of this instrument. The carrying value of the Company’s loans receivable approximate fair value because their terms approximate market rates.

 

Net Loss Per Share

 

Basic loss per share is computed by dividing the net loss available to common stockholders by the weighted average number of common shares outstanding for the year. Dilutive loss per share reflects the potential dilution of securities that could share in the losses of the Company. 36,667 shares underlying convertible preferred stock were excluded from the computation of diluted loss per share for the six months ended June 30, 2023 and 2022, because their impact was anti-dilutive.

 

Concentration of Credit Risk

 

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents and loans receivable. The Company maintains its cash in bank and financial institution deposits that at times may exceed federally insured limits. Management has established an allowance of $1,633,380 as of June 30, 2023 and December 31, 2022.

 

Recently Issued and Adopted Accounting Pronouncements

 

Recent accounting pronouncements that the Company has adopted or that will be required to adopt in the future are summarized below.

 

In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. The amendments introduce an impairment model that is based on expected credit losses (“ECL”), rather than incurred losses, to estimate credit losses on certain types of financial instruments (ex. loans and held to maturity securities), including certain off-balance sheet financial instruments (ex. commitments to extend credit and standby letters of credit that are not unconditionally cancellable). The ECL should consider historical information, current information, and reasonable and supportable forecasts, including estimates of prepayments, over the contractual term. An entity must use judgment in determining the relevant information and estimation methods that are appropriate in its circumstances. Financial instruments with similar risk characteristics may be grouped together when estimating the ECL. The ASU also amends the current available for sale security impairment model for debt securities whereby credit losses relating to available for sale debt securities should be recorded through an allowance for credit losses. For an emerging growth company, the amendments in the update are effective for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. The amendments will be applied through a modified retrospective approach, resulting in a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The Company is currently planning for the implementation of this accounting standard.

 

12

 

The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

 

NOTE 4 – LOANS RECEIVABLE, NET

 

Loans Receivable - Related Parties

 

Loan Agreement with Partners South Holdings LLC (Revolving Line of Credit)

 

On August 28, 2017 the Company entered into a loan agreement with Partners South Holdings LLC (“Borrower”), which is owned by Timothy R. Fussell, President, Chairman of the Board and a director of the Company, for a revolving line of credit in the maximum principal sum of $3,600,000 for the purpose of financing real property construction costs and working capital needs. On January 28, 2020, this loan was amended to reduce the loan amount to $657,500. The maturity date of the loan is August 31, 2022 at which time the entire principal balance of the Loan plus accrued interest thereon is due and payable. The fixed interest rate on the loan is 3.5% and all interest receivables are due at maturity. As of December 31, 2021, $477,500 had been advanced on the loan, origination fees of $180,000 due to the Company have been added to the balance due on the loan and recorded as a discount against the loan to be amortized into income through the maturity date, and the Company also incurred loan issuance costs of $420,000, which were recorded as deferred issuance costs to be amortized as a reduction of interest income through the maturity date. During the six months ended June 30, 2022 and 2021, the Company recognized $0 and $20,667, of the deferred issuance costs, which are carried at $0 as of June 30, 2022 and December 31, 2021. As of June 30, 2023 and December 31, 2022, the Company has established a full reserve against this loan until such time as the loan is repaid; the gross loan receivable balance is $0.

 

Loan Agreement with Partners South Properties Corporation (Revolving Line of Credit)

 

On August 28, 2017, the Company entered into a loan agreement with Partners South Properties Corporation (“Borrower”), which is owned by Timothy R. Fussell, President, Chairman of the Board and a director of the Company, for a revolving line of credit in the maximum principal sum of $5,000,000 for the purpose of financing real property construction costs and working capital needs. On November 2, 2019, this loan was amended to reduce the loan amount to $250,000. The loan is secured in full by a first position lien on any and all Real Property in which the Borrower has any interest in for such purposes. The maturity date of the loan is August 31, 2022 at which time the entire principal balance of the loan plus accrued interest thereon is due and payable. The annual fixed interest rate on the loan is 3.5% and all interest receivables are due at maturity. As of December 31, 2021, receivable balance is $250,000. The Company has established a full reserve against the $250,000 receivable balance until such time as the loan is repaid. As of June 30, 2023 and December 31, 2022, the receivable balance is $0.

 

Loans Receivable

 

Paris Med

 

On May 2, 2018, the Company and Paris Med entered into agreements, pursuant to which Paris Med agreed to provide project financing in the amount of $158,216,541, to an unrelated third party consisting of three notes as follows:

 

1)

Construction financing in the amount of $90,204,328, maturing in 10 years, including the construction period, and accruing interest at an annual rate of 5.5% during the construction period, and 4.5% upon conversion to a permanent loan.  As of December 31, 2020, Paris Med has made $558,000 of advances pursuant to the construction loan.  The Company received loan origination fees, in the amount of $92,400, which is presented net of the underlying loan advances on the accompanying consolidated balance sheets and amortized into income over the terms of the underlying loans.

 

2)

Equipment financing note in the amount of $24,715,986, payable monthly, accruing interest at an annual rate of 5.75%, and having terms approximating the lives of the underlying equipment.  As of June 30, 2023, no amounts have been advanced pursuant to the equipment financing note.

 

3)

Operations financing, business line of credit in the amount of $23,932,625, accruing interest at an annual rate of 5.75%, maturing in 10 years.  As of June 30, 2023, no amounts have been advanced pursuant to the line of credit.

 

13

 

4)

The notes are secured by the assignment of leases and fixed assets related to the project.

 

In December 2022, the Company established a full reserve against this loan until such time as the loan is repaid. As of June 30, 2023 and December 31, 2022, the receivable balance is $0.

 

NOTE 5 - COMMITMENTS AND CONTINGENCIES

 

Alpha Mortgage Notes, LLC

 

In exchange for its 90% interest in the Alpha Mortgage Notes, LLC, ("SPV") the Company is required to contribute 4,015,667 shares of common stock to be used by the SPV for the purchase of performing notes for the SPV. The SPV is required to make monthly distributions to its 10% member of $10,000 up until the time a purchase of the performing notes are made, and upon the acquisition of the six mortgages specified in the SPV's operating agreement, monthly payments of $150,000 per month from gross interest income received for 30 months; and 20% of any other future note purchases. The 10% partner will also receive an amount equal to 1% of the principal amounts received on each loan. For the six months ended June 30, 2023, the Company accrued $60,000 of distributions. As of June 30, 2023 $520,000 of minimum distributions are owed to the 10% partner.

 

Litigation

 

We are currently involved in the following legal proceedings:

 

Steven T. Matthiesen and Joanna K. Matthiesen, jointly and severally v. Tmothy Fussell et al. In the United States District Court, Southern District of Florida, Case No. 21CV62334. This breach of contract matter resulted in a default judgment against the Defendants in 2022 of $1,514,000 plus fees and costs. This case remains pending as to Defendants Timothy Fussell and Partners South Holdings, LLC only.

Pending Litigation

Judicial Ruling

Fusion Lodgings LLC v. PLC et al, In the District Court, 160^th Judicial District, Dallas County, TX, Cause No. DC-20-09139. This breach of contract matter resulted in a default judgment against the Defendants of $1,000,000 plus fees and costs.

 

Supplemental complaint for financial relief in regards to collections, In the circuit court of the eleventh judicial circuit in and for Miami-Dade County, Florida, case #2021-20869-CA01, seeking $144,147 plus 6% interest from 2013. The Company is currently in negotiations with plaintiff,

 

Advisory Agreement

 

In June 2019, the Company entered into an advisory agreement, pursuant to which it agreed to compensate a third-party advisor a percentage of future capital raises facilitated by the advisor. Compensation includes non-refundable cash, cash compensation based on a percentage of capital raised. The advisor may elect to receive certain percentage-based fees in the form of equity. Upon the closing of a transaction, the advisor will receive five-year warrants to purchase a number of shares of common stock equal to 8% of the number of shares issue in the transaction at a strike price of the transaction value as defined the agreement. As of the date of this report, no amounts have been earned and no equity instruments have been issued as transaction-based fees pursuant to this agreement.

 

NOTE 6 – NOTE PAYABLE SHORT-TERM

Note Payable - Unrelated Party 

On June 29, 2022, the Company issued a promissory note in the amount of $35,000 to an unrelated party. The note bears interest at an annual rate of 24% and matured on December 29, 2022. This note is currently in default, incurring interest at the default rate of 3.5% monthly on the unpaid balance. As of June 30, 2023 and December 31, 2022, the Company recorded $46,629 and $39,279 in Notes payable – short term. As of June 30, 2023 and 2022, the Company recorded $7,350 and $0 in interest expense.

 

NOTE 7 – RELATED PARTY TRANSACTIONS

 

Loans receivable

 

The Company has extended lines of credit and loans to related parties. See Note 4.

 

14

 

Management Fee

 

The Company pays its parent company, Omega Commercial Finance Corp (“Omega”) management fees pursuant to a corporate governance management agreement executed on June 1, 2017. Omega is to provide services related to facilitating the introduction of potential investors for compensation not to exceed $300,000 per year. The agreement remains in effect until cancelled by Omega. During the six months ended June 30, 2023 and 2022, the company accrued management fees of $75,000. Total management fees of $375,000 and $300,000 remain unpaid as of June 30, 2023 and December 31, 2022.

 

Note Payable – related party

 

On October 14, 2020, the Company issue a promissory note in the amount of $175,000 to Partners South, Holdings, LLC. The note bears interest at an annual rate of 10% and matured on December 15, 2020. The note is in default and due on demand. As of June 30, 2023 and December 31, 2022, the Company recorded $244,871 and $231,747 in Notes payable - related party

 

NOTE 8 – STOCKHOLDERS’ EQUITY

 

Temporary Equity

 

On November 27, 2017, 16,667 shares of Series 2018 Convertible Preferred stock were issued at a value of $15.00 per share to one entity in exchange for cash of $250,000.  The shares have 350,000 warrants attached, each warrant entitling the holder to one additional share with an exercise date of up to 5 years from the issuance date of the shares. The preferred stock is mandatorily redeemable 10 years after issuance. On January 15, 2018, the Company issued 20,000 shares of Series 2018 to Partners South Holding LLC for services provided at $15 per share, no warrants attached. The Company allocated $236,897 the proceeds from the sale of the preferred stock to the warrants, which was recorded as a discount against the preferred stock and is to be amortized as a deemed dividend through the 10-year redemption date.  The balance of the preferred stock reflected in temporary equity as of June 30, 2023 and December 31, 2022, was $445,942 and $434,098, net of unamortized discounts of $104,637 and $116,481, respectively.

 

Preferred Stock

 

Series A Convertible Preferred Stock.

 

In November 2017, the Company’s board of directors designated 100,000 authorized shares of Series A Convertible Preferred Stock (“Series A”). Each share of Series A has a par value of $15.00 and has no voting or dividend rights. Upon liquidation, dissolution or wining up, the holders of Series A shares are entitled to be paid out of the assets of the Company, if any, ratably with the common stock holders. Each share of Series A is convertible within one year of issuance into two shares of common stock of the Company. At any time after 180 days of issuance, the Company has the right, but not the obligation, to redeem all, but not less than all, of the outstanding Series A shares by paying cash, common stock, or a combination of both an amount equal to the par value of the Series A shares. On the one-year anniversary of issuance, the Company has an option to redeem the Series A shares for an amount equal to the par value of the Series A shares. There are 1,167 shares of Series A Convertible Preferred Stock outstanding as of June 30, 2023 and December 31, 2022.

 

Series AA Convertible Preferred Issuance

 

In February, 2021, Alpha issued 100,000 Series AA Convertible Preferred Shares to Omega Commercial Finance Corporation which represents 100% of the issued and outstanding Series AA Convertible Preferred Shares. Each share of Series AA Preferred Stock shall entitle the holder thereof to four hundred fifty (450) votes on all matters submitted to a vote of the stockholders of the Company. Each share of Series AA Preferred Stock shall be convertible, at the option of the holder thereof, at any time and from time to time, into ten (10) fully paid and non-assessable shares of Common Stock (the “Conversion Amount”). There are 100,000 shares of Series AA Convertible Preferred Stock outstanding as of June 30, 2023 and December 31, 2022.

 

Capital Contributions

 

During the six months ended June 30, 2023, Omega Commercial Finance Corp made a cash contribution to the Company of $16,500. This was classified as capital contribution and recorded in additional paid-in capital.

 

15

 

Common Stock

 

On May 10, 2023, Omega Worldwide, an unaffiliated company, purchased 1,500,000 shares of common stock, par value $0.0001, for $1,500 cash or $0.001/share.

 

Common Stock Warrants

 

As of June 30, 2023, there are no outstanding warrants.

 

As of June 30, 2022, there are warrants outstanding to purchase 520,000 shares for an exercise price of $15.00 over five years, of which warrants to acquire 350,000 shares expire on September 19, 2022 and warrants to acquire 170,000 shares expire on December 14, 2022.

 

NOTE 9 – SUBSEQUENT EVENTS

 

The Company has evaluated subsequent events through the date the financial statements were issued. The Company has determined that there are no such events that warrant disclosure or recognition in the consolidated financial statements presented herein.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

This Management’s Discussion and Analysis of Financial Condition and Results of Operations is intended to provide a reader of our financial statements with a narrative from the perspective of our management on our financial condition, results of operations, liquidity, and certain other factors that may affect our future results.  The following discussion and analysis should be read in conjunction with our audited consolidated financial statements and the accompanying notes thereto included in “Item 8. Financial Statements and Supplementary Data.”  In addition to historical financial information, the following discussion and analysis contains forward-looking statements that involve risks, uncertainties and assumptions.  See “Forward-Looking Statements.”  Our results and the timing of selected events may differ materially from those anticipated in these forward-looking statements as a result of many factors.

 

Results of Operations

 

General

 

We have recognized no income the three months ended June 30, 2023, compared to no income for the same period in 2022,  As of June 30, 2023, the Company had an accumulated deficit of approximately $7.4 million.

 

The following table provides selected consolidated balance sheet data as of June 30, 2023.

 

Balance Sheet Data:	6/30/2023
Cash	$	465
Loan receivable and accrued interest receivable, net of discounts		0
Total assets		465
Current liabilities		4,678,763
Total liabilities		4,678,763
Temporary equity		445,942
Shareholders' equity		(5,124,240)

 

Three Months Ended June 30, 2023 as compared to Three Months Ended June 30, 2022

 

For the three months ended June 30, 2023, we generated no net investment income, compared ro none in 2022..  We incurred $75,035 in operating expenses during the 2023 period, compared to $181,299 in 2022.

 

Six Months Ended June 30, 2023 as compared to Six Months Ended June 30, 2022

 

For the six months ended June 30, 2023, we generated no net investment income, compared to none in 2022. We incurred $170,234 in operating expenses during the 2023 period, compared to $301,098 in 2022.

 

Liquidity and Capital Resources

 

During the six months ended June 30, 2023, Omega, the principal stockholder of the Company, made additional capital contributions to the Company of $16,500 , compared to $73,650 in 2022. In addition, on May 10, 2023, , the Company received $1,500 from the sale of 1,500,000 shares of common stock, or $0.001/share, to an unrelated company. Additionally the Company received .a short-term loan of $35,000 from an unrelated party, bearing interest of $24%, interest and principal of $39,200 due and payable on December 29, 2022, extendable for three months with payment of $2,100 in accrued interest. This loan is currently in default.

 

 

Critical Accounting Policies

 

Use of Estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods presented. The Company is required to make judgments and estimates about the effect of matters that are inherently uncertain. The Company regularly evaluates estimates and assumptions related to the valuation of the allowance for loan losses, loss contingencies, useful life and recoverability of long-lived assets, deferred income tax asset valuations and loss contingencies. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. Although, we believe our judgments and estimates are appropriate, actual future results may be different; if different assumptions or conditions were to prevail, the results could be materially different from our reported results.

 

Loans Receivable, net and Allowance for Losses

 

The Company records its investments in loans receivable at cost less unamortized costs of issuance and deferred origination fees. Origination fees collected at the time of investment are recorded against the loans receivable and amortized into net interest income over the lives of the related loans. Issuance costs incurred are capitalized along with the initial investment and amortized against net interest income over the lives of the related loans.

 

When a loan receivable is placed on non-accrual status, the related interest receivable is reversed against interest income of the current period. If a non-accrual loan is returned to accrual status, the accrued interest existing at the date the residential loan is placed on non-accrual status and interest during the non-accrual period are recorded as interest income as of the date the loan no longer meets the non-accrual criteria.

  

The Company maintains an allowance for loan losses on its investments in real estate loans receivable for estimated credit impairment.  Management’s estimate of losses is based on a number of factors including the types and dollar amounts of loans in the portfolio, adverse situations that may affect the borrower’s ability to repay, prevailing economic conditions and the underlying collateral securing the loan.  Additions to the allowance are provided through a charge to earnings and are based on an assessment of certain factors, which may indicate estimated losses on the loans.  Actual losses on loans are recorded first as a reduction to the allowance for loan losses.  Generally, subsequent recoveries of amounts previously charged off are recognized as income.

 

Estimating allowances for loan losses requires significant judgment about the underlying collateral, including liquidation value, condition of the collateral, competency and cooperation of the related borrower and specific legal issues that affect loan collections or taking possession of the property on an individual loan receivable basis.

 

Off-Balance Sheet Arrangements

 

There are no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors. 

 

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

 

As a smaller reporting company, we are not required to include disclosure under this item.

 

 

ITEM 4. CONTROLS AND PROCEDURES.

 

Evaluation of Disclosure Controls and Procedures

 

As of June 30, 2023, our Chief Executive Officer (our principal executive and financial officer) conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as is defined in Rule 13a-15(e) of Exchange Act. We recognize that there are material weaknesses related to our internal controls. Therefore, our Chief Executive Officer has concluded that our disclosure controls and procedures were not effective, as of the end of the period covered by this Annual Report on Form 10-K. This includes ensuring that information required to be disclosed was recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms. Furthermore, to provide reasonable assurance that information required to be disclosed is accumulated and communicated as appropriate to allow timely decisions regarding required disclosure.

 

Management’s Report on Internal Control over Financial Reporting

 

Our Chief Executive Officer (our principal executive and financial officer) is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act. We have designed our internal controls to provide reasonable assurance that our financial statements are prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP), and include those policies and procedures that:

 

·

pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and disposition of our assets;

 

·

provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures are being made only in accordance with authorization of our management and directors; and

 

·

provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statements.

 

Our Chief Executive Officer (our principal executive and financial officer) conducted an evaluation of the effectiveness of our internal controls over financial reporting as of June 30, 2023. In making this evaluation, the Chief Executive Officer used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) in its 2013 Internal Control — Integrated Framework.

 

Based on this evaluation, our Chief Executive Officer has concluded that our internal controls over financial reporting were not effective as of the end of the period covered in this Quarterly Report on Form 10-K. The Chief Executive Officer has concluded that the financial statements included in this report fairly present in all material respects our financial position and results of operations.

 

This Quarterly Report does not include an attestation report of the Company’s registered public accounting firm regarding internal control over financial reporting. The Chief Executive Officer’s report was not subject to attestation by the Company’s registered public accounting firm pursuant to rules of the SEC that permit the Company to provide only management’s report in this annual report.

 

Changes in Internal Control over Financial Reporting

 

During the quarter ended June 30, 2023, there have been no changes in our internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 

 

PART II

 

ITEM 1. LEGAL PROCEEDINGS

 

Steven T. Matthiesen and Joanna K. Matthiesen, jointly and severally v. Tmothy Fussell et al. In the United States District Court, Southern District of Florida, Case No. 21CV62334. This breach of contract matter resulted in a default judgment against the Defendants in 2022 of $1,514,000 plus fees and costs. This case remains pending as to Defendants Timothy Fussell and PartnersSouth Holdings, LLC only.

 

Fusion Lodgings LLC v. PLC et al, In the District Court, 160^th Judicial District, Dallas County, TX, Cause No. DC-20-09139. This breach of contract matter resulted in a default judgment against the Defendants of $1,000,000 plus fees and costs.

 

Supplemental complaint for financial relief in regards to collections, In the circuit court of the eleventh judicial circuit in and for Miami-Dade County, Florida, case #2021-20869-CA01, seeking $144,147 plus 6% interest from 2013. The Company is currently in negotiations with plaintiff.

 

We are currently ot aware of any additional pending or threatened material legal or administrative proceedings arising in the ordinary course of business.  We may from time to time become a party to various legal or administrative proceedings arising in the ordinary course of our business.

 

ITEM 1A. RISK FACTORS

 

Risk factors describing the major risks to our business can be found under Item 1A, “Risk Factors”, in our Annual Report on Form 10-K for the year ended December 31, 2021. There has been no material change in our risk factors from those previously discussed in the Annual Report on Form 10-K.

 

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

 

On May 10, 2023, Omega Worldwide, an unaffiliated company, purchased 1,500,000 shares of common stock, parr value $0.0001, for $1,500 cash or $0.001/share.

 

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

 

None.

 

ITEM 4. MINE SAFETY DISCLOSURES

 

Not applicable to our operations. 

 

ITEM 5. OTHER INFORMATION

 

See ITEM 1A above.

 

ITEM 6. EXHIBITS

 

Exhibit Number		Description
31.1		Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act*
31.2		Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act*
32.1		Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002*

 

101.INS	XBRL Instance Document *
101.SCH	XBRL Taxonomy Extension Schema Document *
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document *
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document *
101.LAB	XBRL Taxonomy Extension Label Linkbase Document *
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document *

*     Filed herein

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

ALPHA INVESTMENT INC.

 

/s/ Todd C. Buxton		Chief Executive Officer, Acting Chief Financial Officer and Director		August 22, 2023
TODD C. BUXTON		Title (Principal Executive, financial and Accounting Officer		Date

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

21

 

 

 

 

 

 

 

 

 

Exhibit 31.1

 

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO SECTION 302 OF THE

SARBANES-OXLEY ACT OF 2002

 

I, Todd C. Buxton, Chief Executive Officer certifies that:

 

1. I have reviewed this quarterly report on Form 10-Q of Alpha Investment Inc.;

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal controls over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant) and have:

 

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting;

 

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal controls over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function):

 

a) All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial data information; and

 

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls over financial reporting.

 

Date: August 22, 2023	/s/Todd C. Buxton
	Todd C. Buxton
	Chief Executive Officer (Principal Executive Officer)

 

Exhibit 31.2

 

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO SECTION 302 OF THE

SARBANES-OXLEY ACT OF 2002

 

I, Todd C. Buxton Chief Financial Officer, certify that:

 

1. I have reviewed this quarterly report on Form 10-Q of Alpha Investment Inc.;

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal controls over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant) and have:

 

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting;

 

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal controls over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function):

 

a) All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial data information; and

 

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls over financial reporting.

 

Date:  August 22, 2023	/s/ Todd C. Buxton
	Todd C. Buxton
	Acting Chief Financial Officer (Principal Financial and Accounting Officer)

 

 

Exhibit 32.1

 

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the Quarterly Report of Alpha Investment Inc. (the “Company”) on Form 10-Q for the quarter ended June 30, 2023 as filed with the Securities and Exchange Commission (the “Report”), I, Todd C. Buxton, Chief Executive Officer and Acting Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. SS. 1350, as adopted pursuant to SS. 906 of the Sarbanes-Oxley Act of 2002, that:

 

1.         The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

2.         The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

 

August 22, 2023	/s/ Todd C. Buxton
	Todd C. Buxton, Chief Executive Officer
	(principal executive officer)

 

August 22, 2023	/s/ Todd C. Buxton
	Todd C. Buxton, Acting Chief Financial Officer
	(principal financial and accounting officer)

 

 

 

 

 

 

 

 

 

v3.23.2

Cover - shares	6 Months Ended
	Jun. 30, 2023	Aug. 20, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2023
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2023
Current Fiscal Year End Date	--12-31
Entity File Number	333-198772
Entity Registrant Name	Alpha Investment Inc.
Entity Central Index Key	0001616736
Entity Tax Identification Number	90-0998139
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	200 East Campus View Blvd.
Entity Address, Address Line Two	Suite 200
Entity Address, City or Town	Columbus
Entity Address, State or Province	OH
Entity Address, Postal Zip Code	43235
City Area Code	305
Local Phone Number	704-3294
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		11,224,401

v3.23.2

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Current Assets:
Cash	$ 465
Total Current Assets	465
Other Assets:
Loans receivable - related party, net of discounts
Loans receivable, net of discounts
Interest receivable
Total Other Assets
Property and Equipment, net:
Furniture and Equipment, net
Total Property and Equipment	0	0
TOTAL ASSETS	465
Current Liabilities:
Accounts payable	680,116	602,416
Accrued management fees - related party	525,000	450,000
Distribution payable	520,000	460,000
Notes payable - short-term	46,629	39,279
Notes payable - related party	244,871	231,747
Judgments payable	2,662,147	2,518,000
Total Current Liabilities	4,678,763	4,301,442
Total Liabilities	4,678,763	4,301,442
Temporary Equity:
Series 2018 Convertible Preferred Stock ($0.0001 par value), net of discounts of $104,637 and $116,481, respectively, 100,000 shares authorized; 36,667 shares issued and outstanding (liquidation value: $500,000) (See Note 8)	445,942	434,098
Stockholders' Equity:
Common stock, ($0.0001 par value), 100,000,000 shares authorized; 11,224,401 and 9,724,401 shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively	1,123	973
Additional paid-in capital	6,030,750	6,012,900
Accumulated deficit	(10,745,116)	(10,398,416)
Total Equity	(4,695,728)	(4,367,028)
Non-controlling interest in variable interest entities	(428,512)	(368,512)
Total Stockholders' Equity	(5,124,240)	(4,735,540)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	465
Series A Convertible Preferred Stock
Stockholders' Equity:
Preferred stock ($0.0001 par value), 20,000,000 shares	17,505	17,505
Series AA Convertible Preferred Stock
Stockholders' Equity:
Preferred stock ($0.0001 par value), 20,000,000 shares	$ 10	$ 10

v3.23.2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	20,000,000	20,000,000
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	11,224,401	9,724,401
Common stock, shares outstanding	11,224,401	9,724,401
Series 2018 Convertible Preferred Stock
Temporary equity, par value	$ 0.0001	$ 0.0001
Temporary equity, net of discounts	$ 104,637	$ 116,481
Temporary equity, shares authorized	100,000	100,000
Temporary equity, shares issued	36,667	36,667
Temporary equity, shares outstanding	36,667	36,667
Temporary equity, liquidation value	$ 500,000	$ 500,000
Series A Convertible Preferred Stock
Preferred stock, par value	$ 15.00	$ 15.00
Preferred stock, shares authorized	100,000	100,000
Preferred stock, shares issued	1,167	1,167
Preferred stock, shares outstanding	1,167	1,167
Series AA Convertible Preferred Stock
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	100,000	100,000
Preferred stock, shares issued	100,000	100,000
Preferred stock, shares outstanding	100,000	100,000

v3.23.2

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income:
Net investment income - related parties
Net investment income
Total Income
General and Administrative Expenses:
Management fee - related party	37,500	37,500	75,000	75,000
Administrative expenses	25,035	60,799	50,058	122,666
Professional fees	12,500	83,000	45,177	103,432
Total General and Administrative Expenses	75,035	181,299	170,235	301,098
Loss from Operations	(75,035)	(181,299)	(170,235)	(301,098)
Other Expense:
Other income/expense		(2,518,000)	(144,147)	(2,518,000)
Interest expense, net	(10,237)	(6,563)	(20,476)	(13,125)
Total Other Expense	(10,237)	(2,524,563)	(164,623)	(2,531,125)
Net Loss	(85,272)	(2,705,862)	(334,856)	(2,832,223)
Amortization of discounts on Series 2018 preferred stock and redeemable common stock	(5,922)	(5,922)	(11,844)	(11,844)
Net Income Attributable to Non-controlling Interests
Net Loss Attributable to Common Stockholders	$ (91,194)	$ (2,711,784)	$ (346,700)	$ (2,844,068)
Basic and Diluted Loss Per Share	$ (0.01)	$ (0.28)	$ (0.04)	$ (0.29)
Basic and Diluted Weighted Average Number of Common Shares Outstanding	10,565,060	9,724,401	10,147,053	9,724,401

v3.23.2

Condensed Consolidated Statement of Changes in Stockholders' Equity (Deficit) - USD ($)	Common Stock	Series A Preferred Stock	Series AA Preferred Stock	Paid-In Capital	Non-Controlling Interest	Accumulated Deficit	Total
Beginning balance, value at Dec. 31, 2021	$ 973	$ 17,505	$ 10	$ 5,939,250	$ (248,512)	$ (7,274,955)	$ (1,565,729)
Shares outstanding at Dec. 31, 2021	9,724,401	1,167	100,000
Stock exchange
Stockholder contribution				32,600			32,600
Distributions due to non-controlling interest					(30,000)		(30,000)
Amortization of discount on redeemable preferred stock						(5,922)	(5,922)
Net loss						(126,361)	(126,361)
Ending balance, value at Mar. 31, 2022	$ 973	$ 17,505	$ 10	5,971,850	(278,512)	(7,407,238)	(1,695,412)
Shares outstanding at Mar. 31, 2022	9,724,401	1,167	100,000
Beginning balance, value at Dec. 31, 2021	$ 973	$ 17,505	$ 10	5,939,250	(248,512)	(7,274,955)	(1,565,729)
Shares outstanding at Dec. 31, 2021	9,724,401	1,167	100,000
Net loss							(2,832,223)
Ending balance, value at Jun. 30, 2022	$ 973	$ 17,505	$ 10	6,012,900	(308,512)	(10,119,022)	(4,396,146)
Shares outstanding at Jun. 30, 2022	9,724,401	1,167	100,000
Beginning balance, value at Mar. 31, 2022	$ 973	$ 17,505	$ 10	5,971,850	(278,512)	(7,407,238)	(1,695,412)
Shares outstanding at Mar. 31, 2022	9,724,401	1,167	100,000
Stock exchange
Stockholder contribution				41,050			41,050
Distributions due to non-controlling interest					(30,000)		(30,000)
Amortization of discount on redeemable preferred stock						(5,922)	(5,922)
Net loss						(2,705,862)	(2,705,862)
Ending balance, value at Jun. 30, 2022	$ 973	$ 17,505	$ 10	6,012,900	(308,512)	(10,119,022)	(4,396,146)
Shares outstanding at Jun. 30, 2022	9,724,401	1,167	100,000
Beginning balance, value at Dec. 31, 2022	$ 973	$ 17,505	$ 10	6,012,900	(368,512)	(10,398,416)	(4,735,540)
Shares outstanding at Dec. 31, 2022	9,724,401	1,167	100,000
Stockholder contribution				8,250			8,250
Distributions due to non-controlling interest					(30,000)		(30,000)
Amortization of discount on redeemable preferred stock						(5,922)	(5,922)
Net loss						(249,584)	(249,584)
Ending balance, value at Mar. 31, 2023	$ 973	$ 17,505	$ 10	6,021,150	(398,512)	(10,653,922)	(5,012,796)
Shares outstanding at Mar. 31, 2023	9,724,401	1,167	100,000
Beginning balance, value at Dec. 31, 2022	$ 973	$ 17,505	$ 10	6,012,900	(368,512)	(10,398,416)	(4,735,540)
Shares outstanding at Dec. 31, 2022	9,724,401	1,167	100,000
Net loss							(334,856)
Ending balance, value at Jun. 30, 2023	$ 1,123	$ 17,505	$ 10	6,030,750	(428,512)	(10,745,116)	(5,124,240)
Shares outstanding at Jun. 30, 2023	9,724,401	1,167	100,000
Beginning balance, value at Mar. 31, 2023	$ 973	$ 17,505	$ 10	6,021,150	(398,512)	(10,653,922)	(5,012,796)
Shares outstanding at Mar. 31, 2023	9,724,401	1,167	100,000
Stockholder contribution				8,250			8,250
Distributions due to non-controlling interest					(30,000)		(30,000)
Amortization of discount on redeemable preferred stock						(5,922)	(5,922)
Net loss						(85,272)	(85,272)
Sale of common stock	150			1,350			1,500
Ending balance, value at Jun. 30, 2023	$ 1,123	$ 17,505	$ 10	$ 6,030,750	$ (428,512)	$ (10,745,116)	$ (5,124,240)
Shares outstanding at Jun. 30, 2023	9,724,401	1,167	100,000

v3.23.2

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash Flows from Operating Activities:
Net loss	$ (334,856)	$ (2,832,223)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation Expense		158
Accretion of origination fee income
Amortization of deferred loan costs
Payroll protection loan forgiveness
Changes in operating assets and liabilities:
Increase in judgments payable	144,147	1,518,000
Increase in settlements payable		1,000,000
Increase in interest receivable	20,474
Increase in accrued management fees - related party	75,000	75,000
Decrease in accounts payable and accrued expenses	77,700	143,652
Increase in notes payable - related party		13,125
Net cash used in operating activities	(17,535)	(82,288)
Cash Flows from Investing Activities:
Net cash from investing activities
Cash Flows from Financing Activities:
Proceeds from short term loan		35,000
Proceeds from sale of stock	1,500
Proceeds from stockholder contribution	16,500	73,650
Net cash provided by (used in) financing activities	18,000	108,650
Net increase (decrease) in cash	465	26,362
Cash and restricted cash at beginning of year		588
Cash and restricted cash at end of year	465	26,950
Supplemental Disclosure of Cash Flow Information:
Interest
Income Taxes
Schedule of Non-Cash Investing and Financing Activities:
Distribution due to non-controlling interest	60,000	60,000
Amortization of discount on redeemable preferred stock	$ 11,844	$ 11,844

v3.23.2

ORGANIZATION AND DESCRIPTION OF BUSINESS	6 Months Ended
	Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION AND DESCRIPTION OF BUSINESS	NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS   Alpha Investment Inc, formerly GoGo Baby, Inc. (the “Company”) was incorporated on February 22, 2013 under the laws of the State of Delaware to develop, create, manufacture and market, toys for small children which would be designed to attach to car seats and amuse and entertain children during a drive, without distracting the attention of the driver. The Company, however, encountered significant constraints in raising sufficient capital to fully implement its business plan.   To better reflecting management’s shifted focus of the Company’s business to real estate and other commercial lending, on March 30, 2017, the Company filed a Certificate of Amendment to its Certificate of Incorporation with the Delaware Secretary of State changing its name from “Gogo Baby, Inc.” to “Alpha Investment Inc.”. The name change and a corresponding change in the Company’s OTC markets trading symbol from GGBY to ALPC received approval from FINRA and became effective as of April 19, 2017.   On March 11, 2019, the Company, through Alpha Mortgage Notes I, LLC (the “SPV”) entered into an operating agreement with Alameda Partners LLC, a Utah limited liability company (“Alameda Partners”). Alameda Partners acquired a ten percent (10%) equity interest in the SPV in exchange for a payment of $1,000,000 to the Company and is the managing member of the SPV. The capital is intended for use in implementing the Company’s strategy of acquiring commercial real estate performing notes and support other related growth initiatives and assets acquisitions for the Company The principals of Alameda Partners have significant long-term of experience in the commercial real estate industry as property developers, owners, and managers and currently hold over $50 million in commercial real estate assets. Pursuant to the operating agreement for the SPV, Alameda Partners is entitled to monthly distributions in cash or stock equal to $10,000.  As of June 30, 2022, the SPV has not completed any transactions. On July 30, 2020, Alpha entered a joint venture transaction with Parsons Energy Group, LLC (“Parsons”) with respect to leasehold mining rights then held by Parsons on approximately 1,200 acres located in Independence, Wisconsin.   On July 21, 2021, the Company and Parsons entered into an Unwinding Agreement (the “Unwinding Agreement“), pursuant to which the joint venture was unwound. Under the Unwinding Agreement, Parsons returned the Series 2020 Preferred Shares to the Company for cancellation and the Company assigned the Interest in Legacy Sand back to Parsons and exchanged mutual releases.

v3.23.2

GOING CONCERN	6 Months Ended
	Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
GOING CONCERN	NOTE 2 – GOING CONCERN   Future issuances of the Company’s equity or debt securities will be required for the Company to continue to finance its operations and continue as a going concern. The Company’s present revenues are insufficient to meet operating expenses. The financial statements of the Company have been prepared assuming that the Company will continue as a going concern, which contemplates, among other things, the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has an accumulated deficit of $10,745,116 as of June 30, 2023. During the six months ended June 30, 2023, the Company used $17,535 of cash in operations and incurred a net loss of $334,856. The Company requires capital for its contemplated operational and marketing activities to take place. The Company's ability to raise additional capital through the future issuances of common stock is unknown. Securing additional financing, the successful development of the Company's contemplated plan of operations, and its transition, ultimately, to the attainment of profitable operations are necessary for the Company to continue operations. The ability to successfully resolve these factors raise substantial doubt about the Company's ability to continue as a going concern. The financial statements of the Company do not include any adjustments that may result from the outcome of these aforementioned uncertainties.

v3.23.2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES   Basis of Presentation   In the opinion of the Company, the accompanying unaudited condensed consolidated financial statements are prepared in accordance with instructions for Form 10-Q, include all adjustments (consisting only of normal recurring accruals) which we considered as necessary for a fair presentation of the results for the periods presented. Certain information and footnote disclosures normally included in the financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. It is suggested that these condensed financial statements be read in conjunction with the Company's Annual Report on Form 10-K for the year ended December 31, 2022. The results of operations for the six months ended June 30, 2023 are not necessarily indicative of the results to be expected for future periods or the full year.     Principles of Consolidation   The condensed consolidated financial statements include the accounts of the Company, Alpha Mortgage Notes I, LLC, which is controlled by the Company through its 90% ownership interest, and Paris Med CP-LLC (“Paris Med”), variable interest entity for which the Company is deemed to be the primary beneficiary, (collectively, the “Company”). All significant intercompany balances and transactions have been eliminated in consolidation.   Use of Estimates   The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods presented. The Company is required to make judgments and estimates about the effect of matters that are inherently uncertain. The Company regularly evaluates estimates and assumptions related to the useful life and recoverability of long-lived assets, deferred income tax asset valuations and loss contingences. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. Although, we believe our judgments and estimates are appropriate, actual future results may be different; if different assumptions or conditions were to prevail, the results could be materially different from our reported results.   Cash and Cash Equivalents   Cash equivalents include short-term, highly liquid investments with maturities of three months or less at the time of acquisition. As of June 30, 2023, the Company has $465 in cash and no cash equivalents.   Loans Receivable, net and Allowance for Losses   The Company records its investments in loans receivable at the lower of cost or fair value. Costs are the gross loan receivables less unamortized costs of issuance and deferred origination fees. Origination fees collected at the time of investment are recorded against the loans receivable and amortized into net interest income over the lives of the related loans. Issuance costs incurred are capitalized along with the initial investment and amortized against net interest income over the lives of the related loans.   When a loan receivable is placed on non-accrual status, the related interest receivable is charged to bad debt of the current period. If a non-accrual loan is returned to accrual status, the accrued interest existing at the date the residential loan is placed on non-accrual status and interest during the non-accrual period are recorded as interest income as of the date the loan no longer meets the non-accrual criteria.   The Company maintains an allowance for loan losses on its investments in real estate loans receivable for estimated credit impairment.  Management’s estimate of losses is based on several factors including the types and dollar amounts of loans in the portfolio, adverse situations that may affect the borrower’s ability to repay, prevailing economic conditions and the underlying collateral securing the loan.  Additions to the allowance are provided through a charge to earnings and are based on an assessment of certain factors, which may indicate estimated losses on the loans.  Actual losses on loans are recorded first as a reduction to the allowance for loan losses.  Generally, subsequent recoveries of amounts previously charged off are recognized as income.   Estimating allowances for loan losses requires significant judgment about the underlying collateral, including liquidation value, condition of the collateral, competency and cooperation of the related borrower and specific legal issues that affect loan collections or taking possession of the property on an individual loan receivable basis.  Management has established an allowance of $1,633,380 as of June 30, 2023 and December 31, 2022.   Property and Equipment   Property and equipment are stated at cost. Equipment and fixtures will be depreciated using the straight-line method over the estimated asset lives, 5 years. As at June 30, 2023 and December 31, 2022, the Company recorded $0 in property and equipment, and recorded $0  and $158 in depreciation expense at June 30, 2023 and 2022, respectively.   Income Taxes   The Company accounts for its income taxes in accordance with FASB Accounting Standards Codification (“ASC”) No. 740, "Income Taxes". Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax balances. Deferred tax assets and liabilities are measured using enacted or substantially enacted tax rates expected to apply to the taxable income in the years in which those differences are expected to be recovered or settled. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the date of enactment or substantive enactment.   Accounting for Uncertainty in Income Taxes   The Company applies the provisions of ASC Topic 740-10-25, Income Taxes – Overall – Recognition (“ASC Topic 740-10-25”) with respect to the accounting for uncertainty of income tax positions. ASC Topic 740-10-25 clarifies the accounting for uncertainty in income taxes recognized in a company’s financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740-10-25 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. As of June 30, 2023, tax years since 2014 remain open for IRS audit. The Company has received no notice of audit from the Internal Revenue Service for any of the open tax years.   Revenue Recognition and Investment Income   Origination fees collected at the time of investment are recorded against the loans receivable and amortized into net interest income over the lives of the related loans. Issuance costs incurred are capitalized along with the initial investment and amortized against net interest income over the lives of the related loans. The Company records interest income in accordance with ASC subtopic 835-30 "Imputation of Interest", using the effective interest method. The Company has no income for the six months ended June 30, 2023 and 2022.   When a loan is placed on non-accrual status, the related interest receivable is charged to bad debt of the current period. If a non-accrual loan is returned to accrual status, the accrued interest existing at the date the residential loan is placed on non-accrual status and interest during the non-accrual period are recorded as interest income as of the date the loan no longer meets the non-accrual criteria.   The Company suspends recognizing interest income when it is probable that the Company will be unable to collect all payments according to the contractual terms of the underlying agreements. Management considers all information available in assessing collectability. Collectability is measured on a receivable-by-receivable basis by either the present value of estimated future cash flows discounted at the effective rate, the observable market price for the receivable or the fair value of the collateral if the receivable is collateral dependent. Large groups of smaller balance homogeneous receivables, such as pre-settlement funding transactions, are collectively assessed for collectability. Receivables, including those arising from the sale of loan origination services, is charged off when in the Company's judgment, the receivable or portion of the receivable is considered uncollectible.   Payments received on past due receivables and finance receivables the Company has suspended recognizing interest income on are applied first to principal and then to accrued interest. Interest income on past due receivables and finance receivables, if received, is recorded using the cash basis method of accounting. Additionally, the Company generally does not resume recognition of interest income once it has been suspended. At December 31, 2022, the Company evaluated the collectability of its loans and lines of credit receivable, in light of economic conditions during the Covid-19 pandemic, established an allowance account to bring these to $0. Accordingly, there is no imputed interest receivable for the six months ended June 30, 2023.   Variable Interest Entity Paris Med  Omega Commercial Finance Corp. Variable Interest Entity The Company holds a 10% interest in Paris Med, of which the remaining 90% interest is held by Omega.  Through December 31, 2021, the Company has provided 100% of the funding to Paris Med, which has provided a construction loan to a third party.  This loan receivable is the sole asset of Paris Med.  The Company determined that Paris Med was a variable interest entity based on various qualitative and quantitative factors including but not limited to: 1) financing of Paris Med’s sole asset was received by the Company, which is disproportionate to the Company’s ownership interest and 2) the Company and Omega, a related party, organized the entity for the purpose of facilitating the Company’s activities.  As of June 30, 2023, the Company is considered the primary beneficiary because it has provided substantially all of its financial support and is the only party at risk.  As of December 31, 2022, Paris Med has total assets of $0  because  the Company established a full reserve against this VIE until such time as the loan is repaid.  See Note 4.  For the six months ended June 30, 2023, Paris Med had no activity. At December 31 2022 and June 30, 2023, the Company established a full reserve against this VIE until such time as the loan is repaid.   Fair Value   The carrying amounts reported in the balance sheet for cash, accounts payable and notes payable approximate their estimated fair market value based on the short-term maturity of this instrument. The carrying value of the Company’s loans receivable approximate fair value because their terms approximate market rates.   Net Loss Per Share   Basic loss per share is computed by dividing the net loss available to common stockholders by the weighted average number of common shares outstanding for the year. Dilutive loss per share reflects the potential dilution of securities that could share in the losses of the Company. 36,667 shares underlying convertible preferred stock were excluded from the computation of diluted loss per share for the six months ended June 30, 2023 and 2022, because their impact was anti-dilutive.   Concentration of Credit Risk   Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents and loans receivable. The Company maintains its cash in bank and financial institution deposits that at times may exceed federally insured limits. Management has established an allowance of $1,633,380 as of June 30, 2023 and December 31, 2022.   Recently Issued and Adopted Accounting Pronouncements   Recent accounting pronouncements that the Company has adopted or that will be required to adopt in the future are summarized below.   In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. The amendments introduce an impairment model that is based on expected credit losses (“ECL”), rather than incurred losses, to estimate credit losses on certain types of financial instruments (ex. loans and held to maturity securities), including certain off-balance sheet financial instruments (ex. commitments to extend credit and standby letters of credit that are not unconditionally cancellable). The ECL should consider historical information, current information, and reasonable and supportable forecasts, including estimates of prepayments, over the contractual term. An entity must use judgment in determining the relevant information and estimation methods that are appropriate in its circumstances. Financial instruments with similar risk characteristics may be grouped together when estimating the ECL. The ASU also amends the current available for sale security impairment model for debt securities whereby credit losses relating to available for sale debt securities should be recorded through an allowance for credit losses. For an emerging growth company, the amendments in the update are effective for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. The amendments will be applied through a modified retrospective approach, resulting in a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The Company is currently planning for the implementation of this accounting standard.   The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

v3.23.2

LOANS RECEIVABLE, NET	6 Months Ended
	Jun. 30, 2023
Receivables [Abstract]
LOANS RECEIVABLE, NET	NOTE 4 – LOANS RECEIVABLE, NET   Loans Receivable - Related Parties   Loan Agreement with Partners South Holdings LLC (Revolving Line of Credit)   On August 28, 2017 the Company entered into a loan agreement with Partners South Holdings LLC (“Borrower”), which is owned by Timothy R. Fussell, President, Chairman of the Board and a director of the Company, for a revolving line of credit in the maximum principal sum of $3,600,000 for the purpose of financing real property construction costs and working capital needs. On January 28, 2020, this loan was amended to reduce the loan amount to $657,500. The maturity date of the loan is August 31, 2022 at which time the entire principal balance of the Loan plus accrued interest thereon is due and payable. The fixed interest rate on the loan is 3.5% and all interest receivables are due at maturity. As of December 31, 2021, $477,500 had been advanced on the loan, origination fees of $180,000 due to the Company have been added to the balance due on the loan and recorded as a discount against the loan to be amortized into income through the maturity date, and the Company also incurred loan issuance costs of $420,000, which were recorded as deferred issuance costs to be amortized as a reduction of interest income through the maturity date. During the six months ended June 30, 2022 and 2021, the Company recognized $0 and $20,667, of the deferred issuance costs, which are carried at $0 as of June 30, 2022 and December 31, 2021. As of June 30, 2023 and December 31, 2022, the Company has established a full reserve against this loan until such time as the loan is repaid; the gross loan receivable balance is $0.   Loan Agreement with Partners South Properties Corporation (Revolving Line of Credit)   On August 28, 2017, the Company entered into a loan agreement with Partners South Properties Corporation (“Borrower”), which is owned by Timothy R. Fussell, President, Chairman of the Board and a director of the Company, for a revolving line of credit in the maximum principal sum of $5,000,000 for the purpose of financing real property construction costs and working capital needs. On November 2, 2019, this loan was amended to reduce the loan amount to $250,000. The loan is secured in full by a first position lien on any and all Real Property in which the Borrower has any interest in for such purposes. The maturity date of the loan is August 31, 2022 at which time the entire principal balance of the loan plus accrued interest thereon is due and payable. The annual fixed interest rate on the loan is 3.5% and all interest receivables are due at maturity. As of December 31, 2021, receivable balance is $250,000. The Company has established a full reserve against the $250,000 receivable balance until such time as the loan is repaid. As of June 30, 2023 and December 31, 2022, the receivable balance is $0.   Loans Receivable   Paris Med   On May 2, 2018, the Company and Paris Med entered into agreements, pursuant to which Paris Med agreed to provide project financing in the amount of $158,216,541, to an unrelated third party consisting of three notes as follows:     1) Construction financing in the amount of $90,204,328, maturing in 10 years, including the construction period, and accruing interest at an annual rate of 5.5% during the construction period, and 4.5% upon conversion to a permanent loan.  As of December 31, 2020, Paris Med has made $558,000 of advances pursuant to the construction loan.  The Company received loan origination fees, in the amount of $92,400, which is presented net of the underlying loan advances on the accompanying consolidated balance sheets and amortized into income over the terms of the underlying loans.       2) Equipment financing note in the amount of $24,715,986, payable monthly, accruing interest at an annual rate of 5.75%, and having terms approximating the lives of the underlying equipment.  As of June 30, 2023, no amounts have been advanced pursuant to the equipment financing note.     3) Operations financing, business line of credit in the amount of $23,932,625, accruing interest at an annual rate of 5.75%, maturing in 10 years.  As of June 30, 2023, no amounts have been advanced pursuant to the line of credit.     4) The notes are secured by the assignment of leases and fixed assets related to the project.   In December 2022, the Company established a full reserve against this loan until such time as the loan is repaid. As of June 30, 2023 and December 31, 2022, the receivable balance is $0.

v3.23.2

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 5 - COMMITMENTS AND CONTINGENCIES   Alpha Mortgage Notes, LLC   In exchange for its 90% interest in the Alpha Mortgage Notes, LLC, ("SPV") the Company is required to contribute 4,015,667 shares of common stock to be used by the SPV for the purchase of performing notes for the SPV. The SPV is required to make monthly distributions to its 10% member of $10,000 up until the time a purchase of the performing notes are made, and upon the acquisition of the six mortgages specified in the SPV's operating agreement, monthly payments of $150,000 per month from gross interest income received for 30 months; and 20% of any other future note purchases. The 10% partner will also receive an amount equal to 1% of the principal amounts received on each loan. For the six months ended June 30, 2023, the Company accrued $60,000 of distributions. As of June 30, 2023 $520,000 of minimum distributions are owed to the 10% partner.   Litigation   We are currently involved in the following legal proceedings:   Steven T. Matthiesen and Joanna K. Matthiesen, jointly and severally v. Tmothy Fussell et al. In the United States District Court, Southern District of Florida, Case No. 21CV62334. This breach of contract matter resulted in a default judgment against the Defendants in 2022 of $1,514,000 plus fees and costs. This case remains pending as to Defendants Timothy Fussell and Partners South Holdings, LLC only. Pending Litigation Judicial Ruling Fusion Lodgings LLC v. PLC et al, In the District Court, 160th Judicial District, Dallas County, TX, Cause No. DC-20-09139. This breach of contract matter resulted in a default judgment against the Defendants of $1,000,000 plus fees and costs.   Supplemental complaint for financial relief in regards to collections, In the circuit court of the eleventh judicial circuit in and for Miami-Dade County, Florida, case #2021-20869-CA01, seeking $144,147 plus 6% interest from 2013. The Company is currently in negotiations with plaintiff,   Advisory Agreement   In June 2019, the Company entered into an advisory agreement, pursuant to which it agreed to compensate a third-party advisor a percentage of future capital raises facilitated by the advisor. Compensation includes non-refundable cash, cash compensation based on a percentage of capital raised. The advisor may elect to receive certain percentage-based fees in the form of equity. Upon the closing of a transaction, the advisor will receive five-year warrants to purchase a number of shares of common stock equal to 8% of the number of shares issue in the transaction at a strike price of the transaction value as defined the agreement. As of the date of this report, no amounts have been earned and no equity instruments have been issued as transaction-based fees pursuant to this agreement.

v3.23.2

NOTE PAYABLE SHORT-TERM	6 Months Ended
	Jun. 30, 2023
Debt Disclosure [Abstract]
NOTE PAYABLE SHORT-TERM	NOTE 6 – NOTE PAYABLE SHORT-TERM Note Payable - Unrelated Party  On June 29, 2022, the Company issued a promissory note in the amount of $35,000 to an unrelated party. The note bears interest at an annual rate of 24% and matured on December 29, 2022. This note is currently in default, incurring interest at the default rate of 3.5% monthly on the unpaid balance. As of June 30, 2023 and December 31, 2022, the Company recorded $46,629 and $39,279 in Notes payable – short term. As of June 30, 2023 and 2022, the Company recorded $7,350 and $0 in interest expense.

v3.23.2

RELATED PARTY TRANSACTIONS	6 Months Ended
	Jun. 30, 2023
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 7 – RELATED PARTY TRANSACTIONS   Loans receivable   The Company has extended lines of credit and loans to related parties. See Note 4.   Management Fee   The Company pays its parent company, Omega Commercial Finance Corp (“Omega”) management fees pursuant to a corporate governance management agreement executed on June 1, 2017. Omega is to provide services related to facilitating the introduction of potential investors for compensation not to exceed $300,000 per year. The agreement remains in effect until cancelled by Omega. During the six months ended June 30, 2023 and 2022, the company accrued management fees of $75,000. Total management fees of $375,000 and $300,000 remain unpaid as of June 30, 2023 and December 31, 2022.   Note Payable – related party   On October 14, 2020, the Company issue a promissory note in the amount of $175,000 to Partners South, Holdings, LLC. The note bears interest at an annual rate of 10% and matured on December 15, 2020. The note is in default and due on demand. As of June 30, 2023 and December 31, 2022, the Company recorded $244,871 and $231,747 in Notes payable - related party

v3.23.2

STOCKHOLDERS’ EQUITY	6 Months Ended
	Jun. 30, 2023
Equity [Abstract]
STOCKHOLDERS’ EQUITY	NOTE 8 – STOCKHOLDERS’ EQUITY   Temporary Equity   On November 27, 2017, 16,667 shares of Series 2018 Convertible Preferred stock were issued at a value of $15.00 per share to one entity in exchange for cash of $250,000.  The shares have 350,000 warrants attached, each warrant entitling the holder to one additional share with an exercise date of up to 5 years from the issuance date of the shares. The preferred stock is mandatorily redeemable 10 years after issuance. On January 15, 2018, the Company issued 20,000 shares of Series 2018 to Partners South Holding LLC for services provided at $15 per share, no warrants attached. The Company allocated $236,897 the proceeds from the sale of the preferred stock to the warrants, which was recorded as a discount against the preferred stock and is to be amortized as a deemed dividend through the 10-year redemption date.  The balance of the preferred stock reflected in temporary equity as of June 30, 2023 and December 31, 2022, was $445,942 and $434,098, net of unamortized discounts of $104,637 and $116,481, respectively.   Preferred Stock   Series A Convertible Preferred Stock.   In November 2017, the Company’s board of directors designated 100,000 authorized shares of Series A Convertible Preferred Stock (“Series A”). Each share of Series A has a par value of $15.00 and has no voting or dividend rights. Upon liquidation, dissolution or wining up, the holders of Series A shares are entitled to be paid out of the assets of the Company, if any, ratably with the common stock holders. Each share of Series A is convertible within one year of issuance into two shares of common stock of the Company. At any time after 180 days of issuance, the Company has the right, but not the obligation, to redeem all, but not less than all, of the outstanding Series A shares by paying cash, common stock, or a combination of both an amount equal to the par value of the Series A shares. On the one-year anniversary of issuance, the Company has an option to redeem the Series A shares for an amount equal to the par value of the Series A shares. There are 1,167 shares of Series A Convertible Preferred Stock outstanding as of June 30, 2023 and December 31, 2022.   Series AA Convertible Preferred Issuance   In February, 2021, Alpha issued 100,000 Series AA Convertible Preferred Shares to Omega Commercial Finance Corporation which represents 100% of the issued and outstanding Series AA Convertible Preferred Shares. Each share of Series AA Preferred Stock shall entitle the holder thereof to four hundred fifty (450) votes on all matters submitted to a vote of the stockholders of the Company. Each share of Series AA Preferred Stock shall be convertible, at the option of the holder thereof, at any time and from time to time, into ten (10) fully paid and non-assessable shares of Common Stock (the “Conversion Amount”). There are 100,000 shares of Series AA Convertible Preferred Stock outstanding as of June 30, 2023 and December 31, 2022.   Capital Contributions   During the six months ended June 30, 2023, Omega Commercial Finance Corp made a cash contribution to the Company of $16,500. This was classified as capital contribution and recorded in additional paid-in capital.   Common Stock   On May 10, 2023, Omega Worldwide, an unaffiliated company, purchased 1,500,000 shares of common stock, par value $0.0001, for $1,500 cash or $0.001/share.   Common Stock Warrants   As of June 30, 2023, there are no outstanding warrants.   As of June 30, 2022, there are warrants outstanding to purchase 520,000 shares for an exercise price of $15.00 over five years, of which warrants to acquire 350,000 shares expire on September 19, 2022 and warrants to acquire 170,000 shares expire on December 14, 2022.

v3.23.2

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2023
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 9 – SUBSEQUENT EVENTS   The Company has evaluated subsequent events through the date the financial statements were issued. The Company has determined that there are no such events that warrant disclosure or recognition in the consolidated financial statements presented herein.

v3.23.2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation   In the opinion of the Company, the accompanying unaudited condensed consolidated financial statements are prepared in accordance with instructions for Form 10-Q, include all adjustments (consisting only of normal recurring accruals) which we considered as necessary for a fair presentation of the results for the periods presented. Certain information and footnote disclosures normally included in the financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. It is suggested that these condensed financial statements be read in conjunction with the Company's Annual Report on Form 10-K for the year ended December 31, 2022. The results of operations for the six months ended June 30, 2023 are not necessarily indicative of the results to be expected for future periods or the full year.
Principles of Consolidation	Principles of Consolidation   The condensed consolidated financial statements include the accounts of the Company, Alpha Mortgage Notes I, LLC, which is controlled by the Company through its 90% ownership interest, and Paris Med CP-LLC (“Paris Med”), variable interest entity for which the Company is deemed to be the primary beneficiary, (collectively, the “Company”). All significant intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates	Use of Estimates   The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods presented. The Company is required to make judgments and estimates about the effect of matters that are inherently uncertain. The Company regularly evaluates estimates and assumptions related to the useful life and recoverability of long-lived assets, deferred income tax asset valuations and loss contingences. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. Although, we believe our judgments and estimates are appropriate, actual future results may be different; if different assumptions or conditions were to prevail, the results could be materially different from our reported results.
Cash and Cash Equivalents	Cash and Cash Equivalents   Cash equivalents include short-term, highly liquid investments with maturities of three months or less at the time of acquisition. As of June 30, 2023, the Company has $465 in cash and no cash equivalents.
Loans Receivable, net and Allowance for Losses	Loans Receivable, net and Allowance for Losses   The Company records its investments in loans receivable at the lower of cost or fair value. Costs are the gross loan receivables less unamortized costs of issuance and deferred origination fees. Origination fees collected at the time of investment are recorded against the loans receivable and amortized into net interest income over the lives of the related loans. Issuance costs incurred are capitalized along with the initial investment and amortized against net interest income over the lives of the related loans.   When a loan receivable is placed on non-accrual status, the related interest receivable is charged to bad debt of the current period. If a non-accrual loan is returned to accrual status, the accrued interest existing at the date the residential loan is placed on non-accrual status and interest during the non-accrual period are recorded as interest income as of the date the loan no longer meets the non-accrual criteria.   The Company maintains an allowance for loan losses on its investments in real estate loans receivable for estimated credit impairment.  Management’s estimate of losses is based on several factors including the types and dollar amounts of loans in the portfolio, adverse situations that may affect the borrower’s ability to repay, prevailing economic conditions and the underlying collateral securing the loan.  Additions to the allowance are provided through a charge to earnings and are based on an assessment of certain factors, which may indicate estimated losses on the loans.  Actual losses on loans are recorded first as a reduction to the allowance for loan losses.  Generally, subsequent recoveries of amounts previously charged off are recognized as income.   Estimating allowances for loan losses requires significant judgment about the underlying collateral, including liquidation value, condition of the collateral, competency and cooperation of the related borrower and specific legal issues that affect loan collections or taking possession of the property on an individual loan receivable basis.  Management has established an allowance of $1,633,380 as of June 30, 2023 and December 31, 2022.
Property and Equipment	Property and Equipment   Property and equipment are stated at cost. Equipment and fixtures will be depreciated using the straight-line method over the estimated asset lives, 5 years. As at June 30, 2023 and December 31, 2022, the Company recorded $0 in property and equipment, and recorded $0  and $158 in depreciation expense at June 30, 2023 and 2022, respectively.
Income Taxes	Income Taxes   The Company accounts for its income taxes in accordance with FASB Accounting Standards Codification (“ASC”) No. 740, "Income Taxes". Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax balances. Deferred tax assets and liabilities are measured using enacted or substantially enacted tax rates expected to apply to the taxable income in the years in which those differences are expected to be recovered or settled. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the date of enactment or substantive enactment.
Accounting for Uncertainty in Income Taxes	Accounting for Uncertainty in Income Taxes   The Company applies the provisions of ASC Topic 740-10-25, Income Taxes – Overall – Recognition (“ASC Topic 740-10-25”) with respect to the accounting for uncertainty of income tax positions. ASC Topic 740-10-25 clarifies the accounting for uncertainty in income taxes recognized in a company’s financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740-10-25 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. As of June 30, 2023, tax years since 2014 remain open for IRS audit. The Company has received no notice of audit from the Internal Revenue Service for any of the open tax years.
Revenue Recognition and Investment Income	Revenue Recognition and Investment Income   Origination fees collected at the time of investment are recorded against the loans receivable and amortized into net interest income over the lives of the related loans. Issuance costs incurred are capitalized along with the initial investment and amortized against net interest income over the lives of the related loans. The Company records interest income in accordance with ASC subtopic 835-30 "Imputation of Interest", using the effective interest method. The Company has no income for the six months ended June 30, 2023 and 2022.   When a loan is placed on non-accrual status, the related interest receivable is charged to bad debt of the current period. If a non-accrual loan is returned to accrual status, the accrued interest existing at the date the residential loan is placed on non-accrual status and interest during the non-accrual period are recorded as interest income as of the date the loan no longer meets the non-accrual criteria.   The Company suspends recognizing interest income when it is probable that the Company will be unable to collect all payments according to the contractual terms of the underlying agreements. Management considers all information available in assessing collectability. Collectability is measured on a receivable-by-receivable basis by either the present value of estimated future cash flows discounted at the effective rate, the observable market price for the receivable or the fair value of the collateral if the receivable is collateral dependent. Large groups of smaller balance homogeneous receivables, such as pre-settlement funding transactions, are collectively assessed for collectability. Receivables, including those arising from the sale of loan origination services, is charged off when in the Company's judgment, the receivable or portion of the receivable is considered uncollectible.   Payments received on past due receivables and finance receivables the Company has suspended recognizing interest income on are applied first to principal and then to accrued interest. Interest income on past due receivables and finance receivables, if received, is recorded using the cash basis method of accounting. Additionally, the Company generally does not resume recognition of interest income once it has been suspended. At December 31, 2022, the Company evaluated the collectability of its loans and lines of credit receivable, in light of economic conditions during the Covid-19 pandemic, established an allowance account to bring these to $0. Accordingly, there is no imputed interest receivable for the six months ended June 30, 2023.
Variable Interest Entity	Variable Interest Entity Paris Med  Omega Commercial Finance Corp. Variable Interest Entity The Company holds a 10% interest in Paris Med, of which the remaining 90% interest is held by Omega.  Through December 31, 2021, the Company has provided 100% of the funding to Paris Med, which has provided a construction loan to a third party.  This loan receivable is the sole asset of Paris Med.  The Company determined that Paris Med was a variable interest entity based on various qualitative and quantitative factors including but not limited to: 1) financing of Paris Med’s sole asset was received by the Company, which is disproportionate to the Company’s ownership interest and 2) the Company and Omega, a related party, organized the entity for the purpose of facilitating the Company’s activities.  As of June 30, 2023, the Company is considered the primary beneficiary because it has provided substantially all of its financial support and is the only party at risk.  As of December 31, 2022, Paris Med has total assets of $0  because  the Company established a full reserve against this VIE until such time as the loan is repaid.  See Note 4.  For the six months ended June 30, 2023, Paris Med had no activity. At December 31 2022 and June 30, 2023, the Company established a full reserve against this VIE until such time as the loan is repaid.
Fair Value	Fair Value   The carrying amounts reported in the balance sheet for cash, accounts payable and notes payable approximate their estimated fair market value based on the short-term maturity of this instrument. The carrying value of the Company’s loans receivable approximate fair value because their terms approximate market rates.
Net Loss Per Share	Net Loss Per Share   Basic loss per share is computed by dividing the net loss available to common stockholders by the weighted average number of common shares outstanding for the year. Dilutive loss per share reflects the potential dilution of securities that could share in the losses of the Company. 36,667 shares underlying convertible preferred stock were excluded from the computation of diluted loss per share for the six months ended June 30, 2023 and 2022, because their impact was anti-dilutive.
Concentration of Credit Risk	Concentration of Credit Risk   Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents and loans receivable. The Company maintains its cash in bank and financial institution deposits that at times may exceed federally insured limits. Management has established an allowance of $1,633,380 as of June 30, 2023 and December 31, 2022.
Recently Issued and Adopted Accounting Pronouncements	Recently Issued and Adopted Accounting Pronouncements   Recent accounting pronouncements that the Company has adopted or that will be required to adopt in the future are summarized below.   In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. The amendments introduce an impairment model that is based on expected credit losses (“ECL”), rather than incurred losses, to estimate credit losses on certain types of financial instruments (ex. loans and held to maturity securities), including certain off-balance sheet financial instruments (ex. commitments to extend credit and standby letters of credit that are not unconditionally cancellable). The ECL should consider historical information, current information, and reasonable and supportable forecasts, including estimates of prepayments, over the contractual term. An entity must use judgment in determining the relevant information and estimation methods that are appropriate in its circumstances. Financial instruments with similar risk characteristics may be grouped together when estimating the ECL. The ASU also amends the current available for sale security impairment model for debt securities whereby credit losses relating to available for sale debt securities should be recorded through an allowance for credit losses. For an emerging growth company, the amendments in the update are effective for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. The amendments will be applied through a modified retrospective approach, resulting in a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The Company is currently planning for the implementation of this accounting standard.   The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

v3.23.2

ORGANIZATION AND DESCRIPTION OF BUSINESS (Details Narrative)	6 Months Ended	12 Months Ended
	Jun. 30, 2023 USD ($)	Dec. 31, 2019 USD ($)	Jul. 30, 2020 a
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Distributions payable to real estate partnerships	$ 60,000
Joint Venture | Parsons Energy Group, LLC
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Leasehold mining rights, acres | a			1,200
Alpha Investment Inc. | Alpha Mortgage Notes I, LLC
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Proceeds from contributed capital		$ 1,000,000
Distributions payable to real estate partnerships		$ 10,000

v3.23.2

GOING CONCERN (Details Narrative) - USD ($)	3 Months Ended				6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accumulated deficit	$ 10,745,116				$ 10,745,116		$ 10,398,416
Net cash used in operating activities					17,535	$ 82,288
Net income loss	$ 85,272	$ 249,584	$ 2,705,862	$ 126,361	$ 334,856	$ 2,832,223

v3.23.2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Cash	$ 465
Allowance for doubtful accounts	$ 1,633,380		1,633,380
Property and equipment, estimated useful life	5 years
Property and equipment	$ 0		0
Property and equipment, depreciation expense	0	$ 158
Allowance for accounts and financing receivables			0
Variable interest entity, assets	$ 465
Shares Underlying Convertible Preferred Stock
Shares excluded from computation of diluted loss per share	36,667	36,667
Paris Med | Omega Commercial Finance Corp.
Variable interest entity, ownership percentage in Paris MED	90.00%
Variable interest entity, additional information	Through December 31, 2021, the Company has provided 100% of the funding to Paris Med, which has provided a construction loan to a third party.
Paris Med | Variable Interest Entity
Variable interest entity, assets			$ 0
Alpha Investment Inc. | Paris Med
Variable interest entity, ownership percentage in Paris MED	10.00%
Alpha Investment Inc. | Alpha Mortgage Notes I, LLC
Managing member, ownership interest	90.00%

v3.23.2

LOANS RECEIVABLE, NET (Details Narrative) - USD ($)		1 Months Ended	6 Months Ended		12 Months Ended
	May 02, 2018	Aug. 28, 2017	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021	Dec. 31, 2020	Jun. 30, 2023	Dec. 31, 2022	Jan. 28, 2020	Nov. 02, 2019
Partners South Holdings LLC
Financing Receivable, Past Due [Line Items]
Loan receivable in the form of a revolving line of credit		$ 3,600,000					$ 0	$ 0
Reduction of loan receivable in the form of a revolving line of credit									$ 657,500
Maturity date		Aug. 31, 2022
Interest rate		3.50%
Advances of loan					$ 477,500
Unamortized origination fees					180,000
Deferred issuance costs					420,000
Amortization of issuance costs			$ 0	$ 20,667
Deferred issuance costs			$ 0		0
Partners South Properties Corporation
Financing Receivable, Past Due [Line Items]
Loan receivable in the form of a revolving line of credit		$ 5,000,000
Reduction of loan receivable in the form of a revolving line of credit										$ 250,000
Maturity date		Aug. 31, 2022
Interest rate		3.50%
Loan receivable					$ 250,000
Loan receivable, balance							$ 0	$ 0
Paris Med
Financing Receivable, Past Due [Line Items]
Project financing to an unrelated third party	$ 158,216,541
Paris Med | Construction Loans [Member]
Financing Receivable, Past Due [Line Items]
Financing receivable, commitment	$ 90,204,328
Financing receivable, maturity	maturing in 10 years
Advances on construction loan						$ 558,000
Deferred income						$ 92,400
Paris Med | Equipment Financing
Financing Receivable, Past Due [Line Items]
Interest rate	5.75%
Financing receivable, commitment	$ 24,715,986
Paris Med | Operations Financing
Financing Receivable, Past Due [Line Items]
Interest rate	5.75%
Financing receivable, commitment	$ 23,932,625
Financing receivable, maturity	maturing in 10 years

v3.23.2

COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2019	Dec. 31, 2022
Loss Contingencies [Line Items]
Distribution payable to noncontrolling interest	$ 60,000
Distributions payable	520,000		$ 460,000
Judicial Ruling
Loss Contingencies [Line Items]
Default judgement	1,514,000
Judicial Ruling #2
Loss Contingencies [Line Items]
Default judgement	1,000,000
Pending Litigation
Loss Contingencies [Line Items]
Damages sought, value	144,147
Alpha Investment Inc. | Alpha Mortgage Notes I, LLC (SPV)
Loss Contingencies [Line Items]
Distribution policy, description		In exchange for its 90% interest in the Alpha Mortgage Notes, LLC, ("SPV") the Company is required to contribute 4,015,667 shares of common stock to be used by the SPV for the purchase of performing notes for the SPV.
Distributions payable	$ 520,000
Managing Member | Alpha Mortgage Notes I, LLC (SPV) | Alameda Partners LLC
Loss Contingencies [Line Items]
Commitment, description		The SPV is required to make monthly distributions to its 10% member of $10,000 up until the time a purchase of the performing notes are made, and upon the acquisition of the six mortgages specified in the SPV's operating agreement, monthly payments of $150,000 per month from gross interest income received for 30 months; and 20% of any other future note purchases. The 10% partner will also receive an amount equal to 1% of the principal amounts received on each loan.

v3.23.2

NOTE PAYABLE SHORT-TERM (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Short-Term Debt [Line Items]
Maturity date				Dec. 29, 2022
Interest expense	$ 10,237	$ 6,563	$ 20,476	$ 13,125
Note Payable - Unrelated Party
Short-Term Debt [Line Items]
Note payable	$ 46,629	$ 35,000	46,629	$ 35,000	$ 39,279
Interest rate		24.00%		24.00%
Interest expense			$ 7,350	$ 0

v3.23.2

RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)		1 Months Ended
	Oct. 14, 2020	Jun. 30, 2017	Jun. 30, 2023	Dec. 31, 2022	Jun. 30, 2022
Related Party Transaction [Line Items]
Management fee payable			$ 525,000	$ 450,000
Note payable, related party			244,871	231,747
Partners South Holdings LLC
Related Party Transaction [Line Items]
Note payable	$ 175,000
Interest rate	10.00%
Maturity date	Dec. 15, 2020
Note payable, related party			244,871	231,747
Corporate Governance Management Agreement | Omega Commercial Finance Corp. and Omega Streets Capital
Related Party Transaction [Line Items]
Commitment, description		Omega is to provide services related to facilitating the introduction of potential investors for compensation not to exceed $300,000 per year. The agreement remains in effect until cancelled by Omega.
Accrued management fees			75,000		$ 75,000
Management fee payable			$ 375,000	$ 300,000

v3.23.2

STOCKHOLDERS’ EQUITY (Details Narrative) - USD ($)		1 Months Ended	6 Months Ended
	May 10, 2023	Nov. 27, 2017	Jun. 30, 2023	Dec. 31, 2022	Jun. 30, 2022	Feb. 28, 2021	Jan. 15, 2018	Nov. 30, 2017
Class of Stock [Line Items]
Proceeds from issuance of equity			$ 1,500
Convertible Preferred Stock, net of discount			$ 445,942	$ 434,098
Preferred stock, shares authorized			20,000,000	20,000,000
Preferred stock, par value			$ 0.0001	$ 0.0001
Number of warrants outstanding					520,000
Exercise price					$ 15.00
Term of warrants					5 years
Warrants #1
Class of Stock [Line Items]
Number of warrants outstanding					350,000
Warrant expiration					Sep. 19, 2022
Warrants #2
Class of Stock [Line Items]
Number of warrants outstanding					170,000
Warrant expiration					Dec. 14, 2022
Omega Worldwide LLC
Class of Stock [Line Items]
Sale of shares	1,500,000
Sale of shares, value	$ 1,500
Sale of shares, price per share	$ 0.001
Omega Commercial Finance Corp.
Class of Stock [Line Items]
Capital contributions			$ 16,500
Series A Convertible Preferred Stock
Class of Stock [Line Items]
Preferred stock, shares authorized			100,000	100,000				100,000
Preferred stock, par value			$ 15.00	$ 15.00				$ 15.00
Preferred stock, shares outstanding			1,167	1,167
Series AA Convertible Preferred Stock
Class of Stock [Line Items]
Preferred stock, shares authorized			100,000	100,000		100,000
Preferred stock, par value			$ 0.0001	$ 0.0001
Preferred stock, shares outstanding			100,000	100,000
Series 2018 Convertible Preferred Stock
Class of Stock [Line Items]
Temporary equity, shares issued		16,667
Temporary equity, par value		$ 15.00
Proceeds from issuance of equity		$ 250,000
Temporary equity, additional disclosure		The shares have 350,000 warrants attached, each warrant entitling the holder to one additional share with an exercise date of up to 5 years from the issuance date of the shares. The preferred stock is mandatorily redeemable 10 years after issuance.
Amortization of discount		$ 236,897
Convertible Preferred Stock, net of discount			$ 445,942	$ 434,098
Unamortized discount			$ 104,637	$ 116,481
Series 2018 Convertible Preferred Stock | Partners South Holdings LLC
Class of Stock [Line Items]
Temporary equity, shares issued							20,000
Temporary equity, par value							$ 15

---