##### Table of Contents



SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-QSB
 QUARTERLY REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 For the Quarterly period ended March 31, 2007
 Commission File No. 000-50764
 Across America Real Estate Corp.
  Colorado
    
    20-0003432(State or other jurisdiction
    
    (IRS Employer File Number)of incorporation)700 17th Street, Suite 1200Denver, Colorado
    
    80202(Address of principal executive offices)
    
    (zip code)
 (303) 893-1003
 þ o
 o þ
  o þ




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##### 



FORM 10-QSB
Across America Real Estate Corp.
 TABLE OF CONTENTS
 PagePART I FINANCIAL INFORMATIONItem 1. Financial Statements for the period ended March 31, 2007Consolidated Balance Sheet(Unaudited)
    
    
    3Consolidated Statements of Operations (Unaudited)
    
    
    4Consolidated Statements of Cash Flows (Unaudited)
    
    
    5Notes to Consolidated Financial Statements (Unaudited)
    
    
    6Item 2. Managements Discussion and Analysis and Plan of Operation
    
    
    16Item 3. Controls and Procedures
    
    
    23PART II OTHER INFORMATION
    
    
    24Item 1. Legal Proceedings
    
    
    24Item 2. Changes in Securities
    
    
    24Item 3. Defaults Upon Senior Securities
    
    
    24Item 4. Submission of Matters to a Vote of Security Holders
    
    
    24Item 5. Other Information
    
    
    24Item 6. Exhibits and Reports on Form 8-K
    
    
    25Signatures
    
    
    26Exhibit 21Exhibit 31.1Exhibit 31.2Exhibit 32.1Exhibit 32.2




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##### Table of Contents



AssetsCash and Equivalents
    
    $
    803,204Deposits held by development partners (note 5)
    
    
    946,096Accounts receivable, net
    
    
    45,491Property and equipment, net (note 6)
    
    
    89,201Real estate held for sale (note 3)
    
    
    6,400,811Construction in progress (note 2)
    
    
    3,379,947Land held for development (note 2)
    
    
    11,163,623Current tax asset (note 8)
    
    
    342,756Deferred tax asset (note 8)
    
    
    159,662Deposits
    
    
    73,529Total assets
    
    
    23,404,320Liabilities and Shareholders EquityLiabilitiesAccounts payable
    
    
    151,654Preferred dividends payable (note 4 and 14)
    
    
    76,488Accrued liabilities
    
    
    79,627Income tax liability (note 8)
    
    
    6,585Senior subordinated note payable, related party (note 4)
    
    
    3,500,000Senior subordinated note payable, other (note 14)
    
    
    3,500,000Senior subordinated revolving note, related party (note 4)
    
    
    3,634,756Senior subordinated revolving note, other (note 14)
    
    
    3,634,757Other notes payable (note 12)
    
    
    3,469,735Capital lease obligation (note 13)
    
    
    14,199Unearned revenue
    
    
    137,668Total liabilities
    
    
    18,205,469Shareholders equity (note 7)Noncontrolling interest (note 9)
    
    
    10,499Convertible preferred stock, $.10 par value; 1,000,000
shares authorized,
517,000 shares issued and outstanding
    
    
    51,700Common stock, $.001 par value; 50,000,000 shares authorized,
16,036,625 shares issued and outstanding
    
    
    16,037Additional paid-in-capital
    
    
    6,344,924Retained deficit
    
    
    (1,224,309
    )Total shareholders equity
    
    
    5,198,851Total liabilities and shareholders equity
    
    
    23,404,320




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##### Table of Contents



Three Months EndedMarch 31,2007
    
    
    2006Revenue:Sales
    
    $
    
    
    
    $
    1,723,000Rental income (notes 3 & 11)
    
    
    36,329
    
    
    
    125,078Management fees
    
    
    191,655
    
    
    
    27,000Total revenue
    
    
    227,984
    
    
    
    1,875,078Operating expenses:Cost of Sales
    
    
    
    
    
    
    1,462,852Selling, general and administrative (note 17)
    
    
    826,202
    
    
    
    281,461Total operating expenses
    
    
    826,202
    
    
    
    1,744,313Income/(loss) from operations
    
    
    (598,218
    )
    
    
    130,765Non-operating expense:Interest Income
    
    
    385
    
    
    
    Interest Expense
    
    
    (19,733
    )
    
    
    (93,712
    )Other Expense
    
    
    (2,189
    )
    
    
    Income/(loss) before income taxes
and noncontrolling interest
    
    
    (619,755
    )
    
    
    37,053Income tax provision (note 8)
    
    
    212,735
    
    
    
    19,031Income/(loss) before noncontrolling interest
    
    
    (407,020
    )
    
    
    56,084Noncontrolling interest in income of
consolidated subsidiaries (note 9)
    
    
    (6,447
    )
    
    
    (100,101
    )Net loss
    
    $
    (413,467
    )
    
    $
    (44,017
    )Preferred stock dividend requirements
    
    
    (76,488
    )
    
    
    Net loss applicable to common stock
    
    $
    (489,955
    )
    
    $
    (44,017
    )Basic and diluted loss per common share
    
    $
    (0.03
    )
    
    $
    (0.00
    )Basic and diluted weighted average common
shares outstanding
    
    
    16,036,625
    
    
    
    16,036,625




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##### Table of Contents



Three Months EndedMarch 31,2007
    
    
    2006Cash flows from operating activities:Net loss
    
    $
    (413,467
    )
    
    $
    (44,017
    )Adjustments to reconcile net loss to net cash used by operating activities:Depreciation (note 6)
    
    
    7,747
    
    
    
    1,598Stock option compensation expense (note 7)
    
    
    31,163
    
    
    
    Changes in operating assets and operating liabilities:Construction in progress (note 2)
    
    
    (1,114,404
    )
    
    
    (268,131
    )Real estate held for sale (note 3)
    
    
    (3,621,070
    )
    
    
    (141,888
    )Land held for development (note 2)
    
    
    653,585
    
    
    
    (129,956
    )Accounts receivable
    
    
    (13,661
    )
    
    
    51,197Accounts payable and accrued liabilities
    
    
    (163,013
    )
    
    
    87,603Income tax assets and liabilities (note 8)
    
    
    (206,150
    )
    
    
    Indebtedness to related party
    
    
    720,250
    
    
    
    100,000Net cash (used in) operating activities
    
    
    (4,119,020
    )
    
    
    (343,594
    )Cash flows from investing activities:Payment of deposits
    
    
    (7,199
    )
    
    
    (13,306
    )Payments for property and equipment (note 6)
    
    
    (10,396
    )
    
    
    (150
    )Issuance of notes receivable (note 5)
    
    
    (503,041
    )
    
    
    13,110Proceeds from repayment of notes receivable (note 5)
    
    
    133,269
    
    
    
    10,000Net cash (used in) provided by investing activities
    
    
    (387,367
    )
    
    
    9,654Cash flows from financing activities:Proceeds from related party loans (note 4)
    
    
    1,780,500
    
    
    
    1,303,957Repayment of related party loans (note 4)
    
    
    (422,576
    )
    
    
    (494,183
    )Proceeds from note payable (note 12 and 14)
    
    
    3,278,423
    
    
    
    703,205Repayment of note payable (note 12 and 14)
    
    
    (422,576
    )
    
    
    (919,543
    )Repayment of lease obligation (note 13)
    
    
    (1,620
    )
    
    
    (602
    )Net cash provided by financing activities
    
    
    4,212,151
    
    
    
    592,834Net change in cash
    
    
    (294,236
    )
    
    
    258,894Cash and cash equivalents, beginning of the period
    
    
    1,097,440
    
    
    
    439,314Cash and cash equivalents, end of the period
    
    $
    803,204
    
    
    $
    698,208Supplemental disclosure of cash flow information:Cash paid during the period for:Income taxes
    
    $
    
    
    
    $
    27,921Interest
    
    $
    273,625
    
    
    $
    46,188Supplemental disclosure of non-cash investing and
financing activitiesPreferred stock dividends
    
    $
    76,488
    
    
    $
    




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1) Nature of Organization and Summary of Significant Accounting Policies
 Organization and Basis of Presentation




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Principles of Consolidation
  Name of Subsidiary Ownership
 Name of Subsidiary
    
    OwnershipCCI Southeast, LLC (CCISE)
    
    
    100.00
    %Riverdale Carwash Lot 3A, LLC (Riverdale)
    
    
    100.00
    %AARD-Cypress Sound, LLC (Cypress Sound)
    
    
    51.00
    %AARD-TSD-CSK Firestone, LLC (Firestone)
    
    
    51.00
    %South Glen Eagles Drive, LLC (West Valley)
    
    
    51.00
    %119th and Ridgeview, LLC (Ridgeview)
    
    
    51.00
    %53rd and Baseline, LLC (Baseline)
    
    
    51.00
    %Hwy 278 and Hwy 170, LLC (Bluffton)
    
    
    51.00
    %State and 130th, LLC (American Fork)
    
    
    51.00
    %Clinton Keith and Hidden Springs, LLC (Murietta)
    
    
    51.00
    %Hwy 46 and Bluffton Pkwy, LLC (Bluffton 46)
    
    
    51.00
    %AARD Bader Family Dollar Flat Shoals, LLC (Flat Shoals)
    
    
    51.00
    %AARD Westminster OP7, LLC (Westminster OP7)
    
    
    51.00
    %Eagle Palm I, LLC (Eagle)
    
    
    51.00
    %AARD Econo Lube Stonegate, LLC (Econo Lube)
    
    
    51.00
    %AARD Bader Family Dollar MLK, LLC (MLK)
    
    
    51.00
    %AARD-Charmar Greeley, LLC (Starbucks)
    
    
    51.00
    %AARD-Charmar Greeley Firestone, LLC
    
    
    51.00
    %AARD 5020 Lloyd Expy, LLC (Evansville)
    
    
    51.00
    %AARD 2245 Main Street, LLC (Plainfield)
    
    
    51.00
    %AARD-Buckeye, LLC (Buckeye)
    
    
    51.00
    %AARD Esterra Mesa 1, LLC (Esterra Mesa 1)
    
    
    51.00
    %AARD Esterra Mesa 2, LLC (Esterra Mesa 2)
    
    
    51.00
    %AARD Esterra Mesa 3, LLC (Esterra Mesa 3)
    
    
    51.00
    %AARD Esterra Mesa 4, LLC (Esterra Mesa 4)
    
    
    51.00
    %AARD MDJ Goddard, LLC (Goddard)
    
    
    51.00
    %AARD Charmar Arlington Boston Pizza, LLC (Charmar Boston Pizza)
    
    
    51.00
    %L-S Corona Pointe, LLC (L-S Corona)
    
    
    50.01
    %
  2) Current Development Projects
 Bader Family Dollar
  AARD Plainfield




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AARD Evansville
  AARD Greeley
  Ridgeview
 th
 West Valley
  AARD Stonegate Econolube
  Buckeye




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AARD Charmar Arlington Boston Pizza
  AARD MDJ Goddard LLC
  AARD Esterra Mesa 1,2,3 & 4, LLCs
  (3) Real Estate Held for Sale
 Cypress Sound
  Laveen
 rd
 American Fork




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th
  Bluffton 278
  Bluffton 46
  AARD Westminster OP7
  (4) Related Party Transactions
 GDBA Investments, LLLP




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Senior subordinated note
    
    $
    3,634,756Senior subordinated revolving note
    
    
    3,500,000Total
    
    $
    7,134,756
   (5) Notes Receivable and Development Deposits
  (6) Property and Equipment
  Equipment
    
    $
    21,898Furniture and fixtures
    
    
    16,630Computers and related equipment
    
    
    19,322Software and intangibles
    
    
    39,800Leasehold improvements
    
    
    6,251$
    103,901less accumulated depreciation
    
    
    (14,700
    )$
    89,201




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(7) Shareholders Equity
 Preferred Stock
  Common Stock
  Series A Convertible Preferred Stock
  Stock Based Compensation
    Risk free interest rate
    
    
    4.61
    %Expected life
    
    
    5.0Dividend yield
    
    
    0.00
    %Expected volatility
    
    
    62.69
    %Fair Value
    
    $
    0.94
   Risk free interest rate
    
    
    4.48
    %Expected life
    
    
    5.0Dividend yield
    
    
    0.00
    %Expected volatility
    
    
    86.87
    %Fair Value
    
    $
    1.94




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Options Outstanding
    
    
    Options ExercisableWeighted
    
    
    Weighted
    
    
    
    
    
    
    
    
    
    
    Weighted
    
    
    WeightedNumber
    
    
    Average
    
    
    Remaining
    
    
    Aggregate
    
    
    
    
    
    
    Average
    
    
    Remaining
    
    
    Aggregateof
    
    
    Exercise
    
    
    Contractual
    
    
    Intrinsic
    
    
    Shares
    
    
    Exercise
    
    
    Contractual
    
    
    IntrinsicOptions
    
    
    Price
    
    
    Term
    
    
    Value
    
    
    Exercisable
    
    
    Price
    
    
    Term
    
    
    ValueBalance at December 31,
2005
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Activity during 2006:Granted
    
    
    385,000
    
    
    
    1.65
    
    
    
    4.9
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Expired/Cancelled
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Forfeited
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Exercised
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Balance at December 31,
2006
    
    
    385,000
    
    
    
    1.65
    
    
    
    4.9
    
    
    
    1,732,500
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Activity during 2007:Granted
    
    
    15,000
    
    
    
    2.75
    
    
    
    5.0
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Expired/Cancelled
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Forfeited
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Exercised
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Balance, at March 31,
2007
    
    
    400,000
    
    
    
    1.69
    
    
    
    4.6
    
    
    
    96,250
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    




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(8) Income Taxes
  Income tax expense (benefit):Current tax expense (benefit):Federal
    
    $
    (70,384
    )State
    
    
    (10,896
    )Total current tax expense (benefit)
    
    $
    (81,280
    )Deferred tax expense (benefit):Federal
    
    $
    (113,691
    )State
    
    
    (17,764
    )Total net deferred tax asset
    
    
    (131,455
    )$
    (212,735
    )
   Deferred tax assets:Partnership income
    
    $
    220,337Total deferred tax assets
    
    $
    220,337Deferred tax liability:Provision for income taxes
    
    
    723Lease income
    
    
    16,050Depreciation
    
    
    43,902Total deferred tax liability
    
    $
    60,675Total net deferred tax asset
    
    $
    159,662
  Tax at US federal statutory rates
    
    $
    (70,384
    )State income taxes, net of federal
    
    
    (10,896
    )Change in beginning deferred balance
    
    
    (131,455
    )Total income tax benefit
    
    $
    (212,735
    )




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(9) Noncontrolling Interests
  Balance
    
    
    Earnings allocated to
    
    
    Earnings disbursed/accrued for
    
    
    BalanceJanuary 1, 2007
    
    
    Noncontrolling Interest
    
    
    Noncontrolling Interest
    
    
    March 31, 2007Cypress
    
    $
    4,594
    
    
    $
    
    
    
    $
    
    
    
    $
    4,5942245 Main
    
    
    
    
    
    
    2,384
    
    
    
    
    
    
    
    2,384Bluffton
    
    
    2,502
    
    
    
    
    
    
    
    
    
    
    
    2,502Bluffton 46
    
    
    60
    
    
    
    
    
    
    
    
    
    
    
    60Laveen
    
    
    298
    
    
    
    
    
    
    
    
    
    
    
    298West Valley
    
    
    298
    
    
    
    
    
    
    
    
    
    
    
    298American Fork
    
    
    9,194
    
    
    
    3,525
    
    
    
    
    
    
    
    12,719OP7
    
    
    
    
    
    
    (12,356
    )
    
    
    
    
    
    
    (12,356
    )Total
    
    $
    16,946
    
    
    $
    (6,447
    )
    
    $
    
    
    
    $
    10,499
 (10) Concentration of Credit Risk for Cash
  (11) Operating Lease Commitments
 Lessee
   December 31, 2007
    
    $
    39,888
 Lessor
  2007
    
    $
    108,9002008
    
    
    145,2002009
    
    
    145,2002010
    
    
    145,2002011
    
    
    145,200thereafter
    
    
    1,201,127$
    1,890,827




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(12) Notes Payable
         2007
    
    $
    428,4522008
    
    
    3,041,283Total $
    
    $
    3,469,735




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(13) Capital Lease Obligations
    2007
    
    $
    7,0792008
    
    
    2,7722009
    
    
    2,7722010
    
    
    2,079$
    14,702less imputed interest
    
    
    503$
    14,199
  (14) Private Placement Transaction
    Senior subordinated note
    
    $
    3,634,757Senior subordinated revolving note
    
    
    3,500,000Total
    
    $
    7,134,757




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(15) Spin Off of Subsidiaries
  (16) Subsequent Events
 GDBA and BOCO Subordinated Line
  United Western Bank Senior Credit Facility




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(17) Selling, General and Administrative Expense
  Quarter Ended
    
    
    Quarter EndedExpense Type
    
    March 31, 2007
    
    
    March 31, 2006Payroll
    
    $
    517,086
    
    
    $
    148,839Professional fees
    
    
    95,225
    
    
    
    69,987Other employee expense
    
    
    57,595
    
    
    
    10,597Stock option compensation expense
    
    
    31,163
    
    
    
    Marketing
    
    
    30,285
    
    
    
    13,818Other
    
    
    94,848
    
    
    
    38,220Total Selling, general and administrative
    
    $
    826,202
    
    
    $
    281,461
 
 ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS AND PLAN OF OPERATION
  Forward-Looking Statements
 Form 10-KSB




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
    
    increase our vulnerability to general adverse economic and industry conditions;
    
    require us to dedicate a substantial portion of our cash flow from operations
to payments on our indebtedness if we do not maintain specified financial
ratios, thereby reducing the availability of our cash flow for other purposes;
or
    
    limit our flexibility in planning for, or reacting to, changes in our business
and the industry in which we operate, thereby placing us at a competitive
disadvantage compared to our competitors that may have less indebtedness.
    
    
    incur additional indebtedness;
    
    make capital expenditures and other investments above a certain level;
    
    merge, consolidate or dispose of our assets or the capital stock or assets of any subsidiary;
    
    pay dividends, make distributions or redeem capital stock in certain circumstances;
    
    enter into transactions with our affiliates;
    
    grant liens on our assets or the assets of our subsidiaries; and
    
    make or repay intercompany loans.




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*
    
    actual or anticipated fluctuations in our operating results;*
    
    changes in financial estimates by securities analysts or our failure to
perform in line with such estimates;*
    
    changes in market valuations of other real estate oriented companies,
particularly those that market services such as ours;




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*
    
    announcements by us or our competitors of significant innovations,
acquisitions, strategic partnerships, joint ventures or capital
commitments;*
    
    introduction of technologies
or product enhancements that reduce the need for our services;*
    
    the loss of one or more key customers; and*
    
    departures of key personnel.




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Results of Operations




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Liquidity and Capital Resources
      Recently Issued Accounting Pronouncements




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Seasonality




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Critical Accounting Policies




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21
    
    List of Subsidiaries31.1
    
    Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/15(d)-14(a)31.2
    
    Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/15(d)-14(a)32.1
    
    Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 200232.2
    
    Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
 Reports on Form 8-K




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ACROSS AMERICA REAL ESTATE CORP.Dated: May 14, 2007
    
    By:
    
    /s/ Ann L. SchmittAnn L. SchmittPresident, Chief Executive
Officer,Dated: May 14, 2007
    
    By:
    
    /s/ James W Creamer IIIJames W Creamer IIITreasurer, Chief Financial Officer




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Exhibit No.
    
    Description21
    
    List of Subsidiaries31.1
    
    Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/15(d)-14(a)31.2
    
    Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/15(d)-14(a)32.1
    
    Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 200232.2
    
    Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002