Company: MYCB
Filing Date: 2025-11-13
Form Type: 10-K
Source: 0001640334-25-002067
Chunk: 517

Company: My City Builders, Inc.
Filing Date: 2025-11-13
Form: 10-K
Item: Item 5
Chunk 517
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 $31,131 and $13,971, respectively. The cost of rental homes was for rented homes such as lawncare, maintenance and repairs, management fees, utilities, insurance and property taxes.

Other income and expenses for the years ended July 31, 2025, and 2024, represent impairment loss on investment of $0 and  $947,500, interest expenses – related party of $ 2,351 and $27,795 for granted loans, interest expenses of $ 100,891 and $19,279 for bank borrowing and third-party loan, bad debts expenses related to rental tenant of $4,195 and $0 and  nonmonetary gain of $0 and $1,298,696 respectively.

The nonmonetary gain of $1,298,696 is related to settlement agreements with Fix Pads Holdings in connection with twenty-nine homes which the Quitclaim Deed Certificates were issued to the Company. The Company obtained the official fair value reports of properties from an independent firm based on sales comparison and secondary sales and recognized the value of twenty-nine (29) properties based on the valuation reports and physical condition of the homes. Some of the homes must be remodeled, therefore its valuation was based on land price or secondary sales and or value per Square Foot. Those valuations were not more than sales comparison price.

On October 4, 2022, the Company, through RAC, entered into a Limited Liability Company Agreement with Fix Pads Holdings, LLC ("Fix Pads"). As a result of the agreement, RAC and Fix Pads formed a limited liability company called RAC FIXPADS II, LLC (“LLC”), incorporated in the state of Delaware. The LLC has two members, RAC and Fix Pads, both providing an initial contribution to the LLC of $1,000 in exchange for a 50% membership interest represented by an issuance of 1,000 Units of the LLC to each party. Each member is entitled to one vote per member. The LLC is managed by a manager, Fix Pads. The agreement provides that additional capital contributions of the members will be made to the LLC as follows: (i) Fix Pads will transfer and assign all rights to and incidents of ownership for up to 60 residential properties it has title, or will have title, to the LLC, as set forth in the agreement; and (ii) RAC will make additional cash contributions to the capital of the LLC, up to a maximum of