# EDGAR Filing Document

**Accession Number:** 0001874979
**File Stem:** 0001493152-26-004863
**Filing Date:** 2026-2
**Character Count:** 193106
**Document Hash:** 25cdcee4f7ab0c5e02b7ddd9e67e0aaa
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001493152-26-004863.hdr.sgml**: 20260203

**ACCESSION NUMBER**: 0001493152-26-004863

**CONFORMED SUBMISSION TYPE**: 1-K

**PUBLIC DOCUMENT COUNT**: 4

**CONFORMED PERIOD OF REPORT**: 20241231

**FILED AS OF DATE**: 20260203

**DATE AS OF CHANGE**: 20260203

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Cityfunds I, LLC
- **CENTRAL INDEX KEY:** 0001874979
- **STANDARD INDUSTRIAL CLASSIFICATION:** REAL ESTATE [6500]
- **ORGANIZATION NAME:** 05 Real Estate & Construction
- **EIN:** 863672902
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 1-K
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 24R-00702
- **FILM NUMBER:** 26591173

**BUSINESS ADDRESS:**
- **STREET 1:** 149 5TH AVENUE
- **STREET 2:** SUITE 2E
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10010
- **BUSINESS PHONE:** 347-585-8798

**MAIL ADDRESS:**
- **STREET 1:** 1315 MANUFACTURING STREET
- **STREET 2:** SUITE 2E
- **CITY:** DALLAS
- **STATE:** TX
- **ZIP:** 75207

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Cityfund I, LLC
- **DATE OF NAME CHANGE:** 20210723

## Part

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 1-K**

**ANNUAL REPORT PURSUANT TO REGULATION A**

For fiscal year ended:

**December 31, 2024**

**Cityfunds I, LLC**

(Exact name of issuer as specified in its charter)

**Best Efforts Offering of Membership Interests**

---

| | |
|:---|:---|
| **Delaware** | **83-3672902** |
| (State of other jurisdiction <br> of incorporation or Organization) | (I.R.S. Employer <br> Identification No.) |

---

**1315 Manufacturing Street**

**Dallas, TX 75207**

(Full mailing address of principal executive office)

**(972)-445-7320**

(Issuer's telephone number, including area code)

**www.cityfunds.com**

(Issuer's website)

**Cityfunds I, LLC Series Austin; Cityfunds I, LLC Series Dallas; Cityfunds I, LLC Series Miami; Cityfunds I, LLC Series Tampa; Cityfunds I, LLC Series Denver; Cityfunds I, LLC Series Houston; Cityfunds I, LLC Series Phoenix; Cityfunds I, LLC Series Los Angeles; Cityfunds I, LLC Series Nashville; Cityfunds I, LLC Series Las Vegas**

(Title of each class of securities issued pursuant to Regulation A)

**TABLE OF CONTENTS**

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| | | |
|:---|:---|:---|
| ITEM 1. | [BUSINESS](#am_001) | 1 |
| ITEM 2. | [MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS](#am_002) | 9 |
| ITEM 3. | [DIRECTORS AND OFFICERS](#am_003) | 15 |
| ITEM 4. | [SECURITY OWNERSHIP OF MANAGEMENT AND CERTAIN SECURITYHOLDERS](#am_004) | 17 |
| ITEM 5. | [INTEREST OF MANAGEMENT AND OTHERS IN CERTAIN TRANSACTIONS](#am_005) | 18 |
| ITEM 6. | [OTHER INFORMATION](#H_005) | 19 |
| ITEM 7. | [FINANCIAL STATEMENTS](#H_006) | 20 |
| ITEM 8. | [EXHIBITS](#H_007) | 22 |

---

i

**CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS**

The information contained in this Annual Report on Form 1-K (this "Form 1-K") includes some statements that are not historical and that are considered "forward-looking statements." Such forward-looking statements include, but are not limited to, statements regarding our development plans for our business; our strategies and business outlook; anticipated development of our company, its manager, each series of our company and the Cityfunds platform (defined below); and various other matters (including contingent liabilities and obligations and changes in accounting policies, standards and interpretations). These forward-looking statements express the manager's expectations, hopes, beliefs, and intentions regarding the future. In addition, without limiting the foregoing, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words "anticipates," "believes," "continue," "could," "estimates," "expects," "intends," "may," "might," "plans," "possible," "potential," "predicts," "projects," "seeks," "should," "will," "would" and similar expressions and variations, or comparable terminology, or the negatives of any of the foregoing, may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.

The forward-looking statements contained in this Form 1-K are based on current expectations and beliefs concerning future developments that are difficult to predict. Neither our company nor the manager can guarantee future performance, or that future developments affecting our company, the manager or the Cityfunds platform will be as currently anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements.

All forward-looking statements attributable to us are expressly qualified in their entirety by these risks and uncertainties. These risks and uncertainties, along with others, are detailed under the headings "Summary – Summary Risk Factors" and "Risk Factors" in the Offering Statement on Form 1-A filed by the company with the Securities and Exchange Commission (the "Commission"). The risk factors described in our Offering Statement on Form 1-A are incorporated by reference into this Form 1-K. Should one or more of these risks or uncertainties materialize, or should any of the parties' assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. You should not place undue reliance on any forward-looking statements and should not make an investment decision based solely on these forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required under applicable securities laws.

ii

**MARKET AND OTHER INDUSTRY DATA**

This Form 1-K includes market and other industry data and estimates that are based on our management's knowledge and experience in the markets in which we operate. The sources of such data generally state that the information they provide has been obtained from sources they believe to be reliable, but we have not investigated or verified the accuracy and completeness of such information. Our own estimates are based on information obtained from our and our affiliates' experience in the markets in which we operate and from other contacts in these markets. We are responsible for all of the disclosure in this Form 1-K, and we believe our estimates to be accurate as of the date of this Form 1-K or such other date stated herein. However, this information may prove to be inaccurate because of the method by which we obtained some of the data for the estimates or because this information cannot always be verified with complete certainty due to the limits on the availability and reliability of raw data, the voluntary nature of the data gathering process and other limitations and uncertainties. As a result, you should be aware that market and other industry data included in this Form 1-K, and estimates and beliefs based on that data, may not be reliable.

iii

**ITEM 1. BUSINESS**

**Company Overview - Our Mission**

Cityfunds I, LLC (the "Company," "we," "us," or "our") is a Delaware series limited liability company established with the purpose of providing public investment opportunities in residential real estate, primarily through home equity investments which we have termed "Homeshares". Real estate has traditionally been viewed by the majority of individuals as an inaccessible, restrictive, and unnecessarily complex asset class. We believe that real estate investing should be straightforward, transparent, and available to all.

Cityfunds offers a differentiated product, designed to emulate an index-like approach in terms of diversification and geographic exposure, with a distinct focus on the residential real estate markets of specific cities. Each series within the Company is structured to make investments in single-family homes through home equity agreements, thereby securing an equity interest in properties that allows the series to participate in potential future appreciation. In addition to home equity investments, each series may also acquire single-family homes to operate as rental properties, further diversifying its investment portfolio.

Along with acquiring the assets described above, we expect to continue using a substantial portion of the net proceeds from our initial and subsequent Regulation A offerings of membership interests of the Company (the "Offering(s)") to further originate, invest in, and manage a diversified portfolio of real estate-related assets.

The manager undertakes the full responsibility of sourcing, analyzing, and managing all assets on behalf of the Company. Each investment is generally subject to a due diligence process, incorporating financial, market, and demographic analyses to ensure the acquisition supports our strategic objectives and aligns with the Company's long-term vision.

Through these efforts, Cityfunds seeks to democratize access to residential real estate investment, providing investors with exposure to appreciating property markets in a structured and efficient manner.

**Our Series LLC Structure**

Each Homeshare or other asset that we acquire will be owned by a series. Each series is offered on a "best efforts" basis, without any minimum offering amount, pursuant to Regulation A under Section 3(b)(2) of the Securities Act of 1933, as amended (the "Securities Act"), for Tier 2 offerings.

As a Delaware series limited liability company, the debts, liabilities, obligations and expenses incurred, contracted for or otherwise existing with respect to a particular series are segregated and enforceable only against the assets of such series, as provided under Delaware law, subject to compliance with applicable statutory requirements.

The series are collectively referred to as the "series" and any single one is referred to as a "series" throughout this annual report. The membership interests of all series are collectively referred to in this annual report as the "interests" and each, individually, as an "interest." The offerings of the interests may collectively be referred to in this annual report as the "offerings" and each, individually, as an "offering." See "Description of the Securities Being Offered" for additional information regarding the interests.

Our company's core business will be the identification, acquisition, and management of Homeshares and opportunistically, single-family rental properties for the benefit of our investors. Each series is intended to act as a portfolio primarily owning multiple Homeshares.

**Investment Objectives**

Our investment objectives are:

● Generate cash flow;

● Long term capital appreciation with moderate leverage; and

● Capital preservation.

These objectives may be pursued concurrently or selectively, and may not all be achieved with respect to any particular series or investment. We cannot assure you that we will attain these objectives or that the value of our assets will not decrease.

**Our Manager**

The Company is managed by Nada Asset Management, LLC (the "Manager"), a wholly owned subsidiary of Nada Holdings Inc. ("Nada"). In accordance with the terms of the Company's Amended and Restated Limited Liability Company Agreement, dated as of August 22, 2022 (the "Operating Agreement"), the Manager is responsible for providing management, advisory, and support services to the Company, each of its series, and their respective subsidiaries.

**Investment Strategy**

The Company's investment strategy focuses primarily on the identification, acquisition, and management of Homeshares, and opportunistic investments in single-family rental properties. Each series is structured to act as a portfolio, predominantly composed of multiple Homeshares. This strategy is designed to maximize returns for investors through a diversified approach, with an emphasis on assets that offer long-term appreciation potential, while maintaining single-family rental properties as a component of the overall portfolio.

**Investment Decisions and Asset Management**

Within the parameters of our investment policies and objectives, the Manager has full discretion in selecting, acquiring, and disposing of investments. We believe successful real estate investment requires a strategic approach that combines favorable acquisitions and dispositions, with active asset management throughout each investment's life. For Homeshare assets, this approach culminates in repayment, while single-family rentals (SFRs) may be sold or held based on market conditions. To that end, we have implemented a disciplined investment process tailored to Homeshare opportunities, integrating the Manager's experience with a structured framework that emphasizes in-depth market research, strict underwriting standards, and comprehensive downside risk analysis. This approach also includes proactive management of all properties acquired, ensuring alignment with our long-term strategic objectives.

To execute this investment process, the Manager will develop and implement a tailored business plan for each investment. Key components of our investment process include:

● **Local Market Research:** The Manager conducts in-depth research for each transaction, focusing primarily on the collateral condition and valuation. This research relies on real-time data from Automated Valuation Models (AVMs), third-party licensed real estate inspectors, and third-party field appraisals from licensed appraisers, ensuring data-driven insights for acquisition and underwriting decisions. This same approach is applied when acquiring single-family rental properties, in addition to insights gathered from a network of local market professionals. This approach provides a comprehensive view of market dynamics across both property types.

● **Underwriting Discipline:** The Manager follows a rigorous process to evaluate all aspects of a potential investment, including property location, income-generating potential, prospects for long-term appreciation, tax considerations, and liquidity.

● **Risk Management:** Effective risk management is a core principle of our investment strategy. The Manager continuously monitors the operational performance of each investment relative to projections, providing oversight to identify and address any issues that may arise.

● **Asset Management:** Before acquiring a property, the Manager formulates a detailed asset business strategy based on acquisition and underwriting data. The Manager regularly reviews and adjusts the strategy to reflect market conditions and potential opportunities throughout the real estate cycle.

**Investments in Real Property as Single Family Rental Properties**

A certain portion of investments made by the Company may consist of holding fee title or long-term leasehold interests in properties, which constitute real property interests. These investments, referred to as "Single-Family Rental Property Investments," involve holding fee title or leasehold interests in residential properties. Such interests may be acquired directly or indirectly through limited liability companies, joint ventures, partnerships, co-tenancies, or other co-ownership arrangements with third parties, including property developers or affiliates of the Manager.

The Company's obligation to acquire any single-family rental property will generally be contingent upon the receipt and satisfactory review of standard due diligence items from the seller, including, as applicable:

● Evidence of marketable title, subject to such liens and encumbrances deemed acceptable by the Manager;

● Auditable financial statements covering recent operations of properties with a rental history, as applicable; and

● Title and liability insurance policies.

**Investments in Homeshares**

Certain investments made by the Company will consist of fractional equity interests, referred to as "Homeshares," in single-family residential properties. These investments involve a series acquiring from a homeowner the right to purchase an undivided percentage interest in the homeowner's primary residence at a future date. In exchange, the series makes a payment, representing a fractional equity interest referred to as the "Homeshare Percentage" (previously termed the "Option Purchase Premium"). The Homeshare Percentage reflects the equity interest in the property and is determined by dividing the gross amount paid to the homeowner by the agreed-upon market value of the property, then adjusting by an exchange rate and converting this value to a percentage.

Each Homeshare investment is formalized through the following agreements:

&nbsp;&nbsp;&nbsp;&nbsp;1. Homeshare
 Percentage Agreement: Outlines the terms of the Homeshare Percentage.

2. Covenant
 Agreement: Specifies the homeowner's obligations to the series.

3. Mortgage:
 Secures the amounts payable under the Homeshare Percentage Agreement and Covenant Agreement and is recorded accordingly.

The Company intends to generate returns on Homeshare investments through one of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;i. Option
 Expiration: At the end of the option period, the homeowner may either pay the Company the value of the Homeshare Percentage (referred
 to as the "Option Holder's Investment Amount"), calculated using an independent third-party automated valuation
 model (AVM) or appraisal, or the Company may compel the sale of the property to collect its Option Holder's investment amount.

ii. Home
 Sale or Refinance: If the homeowner sells or refinances the property before the option expires, the Company will receive a portion
 of the proceeds based on the Option Holder's Investment Amount.

iii. Material
 Default: In the event of a material default under the covenants, the Company may compel the sale of the property to recover its Option
 Holder's Investment Amount.

Homeshare investments do not generate monthly cash flow. Additionally, the "Homeshare Buyback", which allows the homeowner to repurchase the Company's interest during the option period, is calculated based on the home's market value at the time of payoff. Using the same methodology as the Homeshare Percentage, this value is determined by applying the Homeshare Percentage to the current market value, thereby establishing the amount to be paid to the series.

**Valuation of Homeshares**

A Homeshare represents a fractional equity investment in the future value of a single-family residential property. At the inception of a Homeshare option agreement, the property's value is determined using independent third-party automated valuation models (AVMs) or appraisals. Under the Company's Homeshare model, the homeowner agrees to a Homeshare Percentage, representing a fractional equity interest in the home, inclusive of an exchange rate factor. The Homeshare Percentage is calculated by dividing the initial Homeshare amount by the home's value, multiplying by the exchange rate, and then multiplying by 100 to convert it to a percentage, as follows:

Homeshare Percentage = (Homeshare/Home Value) x Exchange Rate x 100

For example, if the Homeshare amount is $75,000, the home's market value is $600,000, and the exchange rate is 1.85, the Homeshare Percentage is calculated as:

Homeshare Percentage = (75,000/600,000) x 1.85 x 100 = 23.125%

At payoff, the Homeshare Payoff Value is determined by applying the Homeshare Percentage to the current market value of the home, allowing the Company's interest to capture a proportionate share of any appreciation.

The homeowner may elect to buy out the Homeshare at any time during the option term by paying the Homeshare Payoff Value, calculated as the Homeshare Percentage multiplied by the current market value of the home. If no buyout occurs by the end of the option term, the series may compel the sale of the home to recover the Homeshare Payoff Value.

**Investment Process**

The Manager has full authority over investment decisions, in line with the Company's investment objectives and policies as outlined in the Operating Agreement. The Manager is responsible for sourcing, acquiring, investing in, and managing Homeshare investments— a unique and rare product in the real estate sector. In addition to Homeshares, the Manager may also oversee investments in residential properties, leveraging relationships with financing partners, third-party intermediaries, peer companies, and financial institutions.

When selecting Homeshare investments, the Manager follows a rigorous, structured investment and underwriting process, tailored to the distinct nature of Homeshares. The evaluation criteria include:

● **Macroeconomic Conditions:** Assessing economic factors that may affect the performance of Homeshare investments.

● **Real Estate Market Trends:** Evaluating market trends that impact valuations and financing terms.

● **Property Fundamentals:** Analyzing key characteristics, such as market demand, homeowner stability, and comparable property data.

● **Cash Flow Potential:** Projecting the expected cash flows from potential homeowner buybacks or other exit events during the holding period.

● **Investment Valuation and Appreciation Potential:** Reviewing valuation methods and assessing the potential for appreciation and future liquidity.

● **Automated Valuation Models (AVMs), Appraisals, and Inspections:** Utilizing AVMs, independent appraisals, home inspection reports, and other relevant property reports as applicable to inform valuation and condition assessments.

● **Market Analysis and Physical Inspections:** Conducting thorough inspections and detailed market research.

● **Transaction Structure:** Reviewing transaction structure, including terms related to governance and control rights.

The Manager further evaluates the investment's risk-return profile, positioning within the capital structure, and applicable financing sources to ensure alignment with the Company's strategic objectives.

**Portfolio Construction Policy**

The Company will seek to structure its investment portfolio to remain exempt from registration under the Investment Company Act of 1940 (the "Investment Company Act"). Under Section 3(a)(1)(C) of the Investment Company Act, a company is excluded from the definition of an "investment company" if at least 60% of its assets are invested in holdings other than securities (excluding cash and government securities). Additionally, Section 3(c)(5)(C) of the Investment Company Act provides an exemption for companies primarily engaged in acquiring mortgages and other liens or interests in real estate. To qualify for this exemption, at least 55% of the Company's assets must consist of mortgages and other liens on and interests in real estate ("Qualifying Interests"), not more than 45% may be in other types of real estate-related interests ("Real Estate-Related Interests"), and no more than 20% may consist of assets unrelated to real estate. A minimum of 80% of total assets must consist of Qualifying Interests and Real Estate-Related Interests. There can be no assurance that we will be able to maintain these asset composition targets at all times.

The Manager will regularly review the portfolio construction to ensure continued compliance with the exemption requirements under the Investment Company Act.

The Company may invest up to 45% of its assets in Real Estate-Related Interests, which include securities backed by mortgages or other real estate-related interests, or interests in companies that invest in such securities.

Additionally, the Company may allocate up to 20% of its assets to non-real estate investments without restriction. These investments are expected to consist primarily of cash, cash equivalents, and marketable publicly traded securities.

**Leverage Policy**

The Company may utilize leverage to enhance total returns for investors through a combination of senior financing on real estate acquisitions, secured borrowing facilities, and capital markets financing transactions. The Company seeks to obtain conservatively structured leverage from government-sponsored programs and private sources, prioritizing long-term, non-recourse, and non-mark-to-market financing, to the extent available on a cost-effective basis. The Manager retains the discretion to modify the leverage policy.

The Company's leverage policy currently limits borrowings to no more than 65% of the greater of (i) the cost of the assets (before deducting depreciation or other non-cash reserves) or (ii) the fair market value of the assets, as determined by an industry-recognized automated valuation model (AVM). Any borrowings exceeding this limit must be approved by the Manager.

**Operating Policies**

**Credit Risk Management.** We may be exposed to various levels of credit and special hazard risk depending on the nature of our assets. The Manager and its executive officers will review and monitor credit risk and other risks of loss associated with each investment. The Manager will monitor the overall credit risk and levels of provision for loss.

**Interest Rate Risk Management.** We aim to mitigate the effects of major interest rate fluctuations by securing fair and risk-averse rates. Our debt structure enables us to acquire additional assets, potentially enhancing the performance of the Cityfunds I, LLC series. While we do not specifically match debt terms to asset holding periods, given the variable payoff timing of Homeshare investments, we prioritize financing arrangements that support our long-term asset growth strategy.

**Equity Capital Policies.** Under the operating agreement, we have the authority to issue an unlimited number of additional interests or other securities. After your purchase in any series offering, the Manager may elect to: (i) sell additional securities in future private offerings, or (ii) issue additional securities in public offerings. To the extent we issue additional equity interests after your purchase in an offering, your percentage ownership interest in us will be diluted. In addition, depending upon the terms and pricing of any additional offerings and the value of our investments, you may also experience dilution in the book value and fair value of your interests.

**Additional Borrowings.** We expect each series may seek, as applicable, to finance or refinance any outstanding indebtedness with an additional mortgage or other debt financing, including with either an affiliate or a third party. We expect that any third-party mortgage and/or other debt instruments that a series, or the Company on behalf of a series, enters into in connection with a financing or refinancing of a property will be secured by a security interest in the title of such property and any other assets of the series. The Company and its affiliates may enter into credit facilities secured by the assets of the various series.

**Disposition Policies**

The decision to dispose of a Homeshare investment is based on specific triggering events rather than solely on projected optimal value. Dispositions typically occur under one of the following conditions: (i) upon the homeowner's decision to exercise the buyout of the Homeshare Percentage during the option term, (ii) if the home is sold or refinanced by the homeowner before the option period expires, (iii) in the event of a material default by the homeowner, allowing the Manager to compel the sale of the property, or (iv) through sale of the Homeshare asset to a third-party purchaser.

The timing of any disposition will be influenced by the terms outlined in the Homeshare agreements, particularly the option exercise period, and considers any early buyout or sale by the homeowner. In each scenario, the Manager will seek to maximize potential returns by capturing any capital appreciation associated with the Homeshare Percentage. However, there is no assurance that this objective will be achieved, as the realized value depends on prevailing market conditions, the home's value at the time of disposition, and the financial obligations of the applicable series.

Regarding single-family rental properties, the Company intends to hold and manage its properties for three to seven years. Properties will be considered for disposition when the Manager believes they have reached optimal value, based on factors such as economic conditions, projected appreciation or depreciation, and the impact of any existing leases. The Manager may decide to sell earlier or hold longer, depending on what is in the best interest of the members. Any sale will consider lessee rights, with efforts to align sales with lease terminations or assign the lease to the buyer where permitted.

The Company will seek to maximize capital appreciation based on market conditions at the time of sale, though this objective cannot be guaranteed.

Upon the payoff or disposition of a Homeshare, or the disposition of a single-family rental property, the net proceeds—after accounting for disposition fees, accrued liabilities, reserves for anticipated future liabilities, series-specific liabilities, and any debt associated with the investment—will, at the Manager's discretion, either be distributed to interest holders of the applicable series or reinvested to enhance the overall performance of the funds.

**Property Disposition Fee**

Upon the disposition and sale of a single-family rental property, the selling series will be charged a market rate property disposition fee by the Manager to cover property sale expenses, including brokerage commissions, title, escrow, and closing costs. This fee is expected to range from four to seven percent of the property sale price. To the extent that the actual property disposition fees are less than the amount charged to the series, the Manager will receive the difference as income. However, the Manager reserves the right to waive collection of any such difference in its discretion.

**Description of the Property Management Agreement**

The Company will appoint the Manager or a third-party property management company to manage series-owned properties (which does not include Homeshares) under a series-specific property management agreement.

The services provided by the property manager will include:

● Collecting
 rent and maintaining books and records;

● Ensuring
 compliance with local landlord/tenant and other applicable laws;

● Routine
 property maintenance and responding to tenant maintenance requests;

● Handling
 tenant on-boarding (move-in) and move-out; and

● Investigating,
 selecting, and, on behalf of the applicable series, engaging and conducting business with such persons as the property manager deems
 necessary to ensure the proper performance of its obligations under the property management agreement, including but not limited
 to consultants, insurers, insurance agents, maintenance providers, bookkeepers and accountants and any and all persons acting in
 any other capacity deemed by the property manager necessary or desirable for the performance of any of the services under the property
 management agreement.

Each property management agreement will terminate on the earlier of: (i) the Manager's discretion to terminate a property management agreement at predetermined renewal periods or by paying a termination fee, (ii) after the date on which the relevant series property has been liquidated and the obligations connected to the series property (including contingent obligations) have been terminated, (iii) the removal of the Manager as managing member of our company and thus of all series (if the property manager is the Manager), (iv) upon notice by one party to the other party of a party's material breach of a property management agreement or (v) such other date as agreed between the parties to the property management agreement.

Each series will indemnify the property manager out of the series' assets against all liabilities and losses (including amounts paid in respect of judgments, fines, penalties or settlement of litigation, including legal fees and expenses) to which it becomes subject by virtue of serving as property manager under the respective property management agreements with respect to any act or omission that has not been determined by a final, non-appealable decision of a court, arbitrator or other tribunal of competent jurisdiction to constitute fraud, willful misconduct or gross negligence.

Currently, we intend to enter into a property management agreement on behalf of each series with an affiliate of the Manager or with a third-party property management company. We reserve the right to change property managers at any time.

**Property Management Fee**

As compensation for the services provided by the Company appointed property manager, each series will be charged a property management fee at market terms and rate pursuant to the terms of the property management agreement.

**Asset Management Fee**

The Manager will receive from each series a quarterly asset management fee equal to 0.375% (1.5% annually) of the value of the interests of that series, payable quarterly in arrears. In addition, pursuant to the operating agreement, the Manager will receive reimbursements for out-of-pocket expenses related to the organization and offerings of each series (up to a maximum of 3% of the gross offering proceeds per series offering), as well as for expenses incurred in the operation of the series and the acquisition of properties, and for services provided by third parties. The Manager may also be entitled to receive a portion of any applicable property management fees and property disposition fees. For operating accounts maintained by the Manager with third-party banks, the Manager is entitled to any interest earned on the cash balances in those accounts. The Manager reserves the right to waive any fees or reimbursements at its sole discretion.

**Acquisition Fee**

The Manager will be entitled to receive an acquisition fee equal to 1.0% of the purchase price for any single-family home acquired by a series.

**Technology Fee**

Effective January 1, 2025, the Manager will be entitled to receive a monthly Technology Fee ("Tech Fee") equal to $30.00 for each Homeshare and single-family rental property owned by each series. This increase from the current rate of $10.00 is intended to further expand the use of technology resources for the benefit of the funds, enhancing operational efficiencies and improving data analytics capabilities in managing each property. The Tech Fee will continue to be charged on a monthly basis and is designed to support ongoing advancements in the technology infrastructure utilized by the Manager and its affiliates in overseeing the assets.

**Sourcing Fee**

Nada Investments, LLC, an affiliate of the Manager will be entitled to receive a Sourcing Fee on each Homeshare acquired by a series, equal to 5.0% of the affiliate's investment cost for owner-occupied properties and 7.0% of the affiliate's investment cost for investment properties. The collection of this fee is at the sole discretion of the affiliate. These arrangements create conflicts of interest because the affiliate may have an incentive to cause a series to acquire more Homeshares or to pay higher prices for Homeshares. See "Conflicts of Interest" below.

**Operating Expenses**

Each series of the Company will be responsible for the costs and expenses attributable to the operations and activities related to such series (referred to as "Operating Expenses"), which may include:

● All fees, costs, and expenses incurred in connection with the management and operation of a series property, including but not limited to Homeowners Association (HOA) fees, property taxes, marketing, security, and routine maintenance;

● Fees, costs, and expenses related to the preparation of reports and accounts for each series, including any necessary regulatory filings (such as blue sky filings), periodic reporting requirements (such as filings on Forms 1-K, 1-SA, and 1-U), and any annual audits of the accounts of such series;

● Insurance premiums and expenses, including but not limited to property insurance and directors and officers insurance for the Manager or a property manager in connection with a series property;

● Withholding or transfer taxes imposed on the Company, a series, or its members as a result of their earnings, investments, or withdrawals;

● Governmental fees and regulatory compliance costs applicable to the Company or a series;

● Legal fees and costs, including those arising from litigation or regulatory investigations involving the Company, a series, or a property manager in connection with the activities of the Company or a series;

● Fees and expenses for any administrator providing services to the Company or a series;

● Fees, costs, and expenses associated with a third-party registrar and transfer agent appointed by the Manager for the administration of a series;

● Costs related to the annual audit of the Company's financial statements, preparation of tax returns, and distribution of reports to investors;

● Costs related to the annual audit of a series' financial statements, tax filings, and distribution of reports to investors;

● Indemnification payments required under the terms of the operating agreement;

● Legal fees and expenses for counsel engaged in connection with the legal affairs of the Company or a series;

● Fees and expenses for outside appraisers, valuation firms, accountants, attorneys, or other experts or consultants engaged by the Manager in connection with the operations of the Company or a series; and

● Any other similar expenses deemed to be Operating Expenses as determined by the Manager in its reasonable discretion;

The Manager will bear its own ordinary operating expenses, including rent, office supplies, payroll taxes, employee compensation, and utilities.

If Operating Expenses for a series exceed the revenue generated from the series property and cannot be covered by available reserves, the Manager may (a) cover the expenses without seeking reimbursement, (b) loan the amount of the Operating Expenses to the series with a reasonable interest rate, to be reimbursed from future revenues of the series (referred to as "Operating Expense Reimbursement Obligations"), or (c) cause the issuance of additional interests in the series to cover the expenses.

**Risk Factors**

We face risks and uncertainties that could affect us and our business as well as the real estate industry generally. These risks are outlined under the heading "Risk Factors" contained in our Offering Circular, which may be accessed here, as the same may be updated from time to time by our future filings under Regulation A. There have been no material changes to the risk factors described in our Offering Circular. In addition, new risks may emerge at any time and we cannot predict such risks or estimate the extent to which they may affect our financial performance. These risks could result in a decrease in the value of the membership interests.

**Conflicts of Interest**

Conflicts of interest may exist or arise in the future between the Manager, its affiliates, and our officers and directors, many of whom also serve as officers and/or directors of the Manager and its affiliated entities. These conflicts may include, but are not limited to, the following:

Our executive officers and directors are also officers and directors of the Manager and its affiliates. As a result, these individuals may face conflicts of interest when negotiating agreements and arrangements between us and the Manager or its affiliates, which may not be conducted on an arm's length basis. The terms of these agreements, including those related to Homeshare transactions, may not be as favorable to us as they would be if negotiated with an unaffiliated third party. Additionally, the Manager is not obligated to make any particular personnel available to us.

Our executive officers and directors are not required to devote a specific amount of time to our business. Accordingly, the time and attention our business receives may be limited due to their commitments to the Manager and its affiliates, as well as other entities or programs sponsored by the Manager. This may impact the management of our Homeshare investments and other business activities. As a result, we may not receive the level of oversight or assistance we might otherwise expect if we were internally managed.

In certain instances, Homeshares or properties may be acquired by the Manager or its affiliates prior to being sold to a series. The Manager or its affiliates may purchase, repair, and improve a property, then sell it to a series at a price determined by the Manager or its affiliate. This price may include a premium over the Manager's or affiliate's initial investment in the property. As a result, the Manager's interests in these transactions may not align with the interests of the series or its investors, and the price a series pays for a Homeshare or property may not be comparable to what would be paid to an unaffiliated third-party seller.

The Manager may sponsor additional investment vehicles in the future with overlapping investment objectives, including those related to Homeshares. To the extent that the Manager determines a property or Homeshare is suitable for both us and another vehicle, we may compete with those vehicles for acquisition opportunities. However, Homeshares or properties deemed suitable for us will be allocated to us if we have sufficient capital to acquire them.

The Manager's liability is limited under the terms of our operating agreement, and we have agreed to indemnify the Manager and its affiliates against certain liabilities, expenses, and claims arising from their actions or omissions in connection with managing our affairs, provided such actions do not constitute bad faith, gross negligence, or willful misconduct. As a result, we may experience poor performance or losses related to Homeshare investments or other activities due to the Manager's actions or omissions, for which the Manager would not be held liable.

**Employees**

Our company does not have any employees. All of the officers and directors of our company are employees of Nada Holdings, Inc., the Managing Member of the Manager.

**Legal Proceedings**

None of our company, any series, the Manager, or any director or executive officer of our company or the Manager is presently subject to any material legal proceedings.

**ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS**

**Overview**

Cityfunds I, LLC (the "Company," "we," "us," or "our") is a Delaware series limited liability company established with the purpose of providing public investment opportunities in residential real estate, primarily through home equity investments which we have termed "Homeshares". Real estate has traditionally been viewed by the majority of individuals as an inaccessible, restrictive, and unnecessarily complex asset class. We believe that real estate investing should be straightforward, transparent, and available to all.

Cityfunds offers a differentiated product, designed to emulate an index-like approach, with a distinct focus on the residential real estate markets of specific cities. Each series within the Company is structured to make investments in single-family homes through home equity agreements, thereby securing an equity interest in properties that allows the series to participate in potential future appreciation. In addition to home equity investments, each series may also acquire single-family homes to operate as rental properties, further diversifying its investment portfolio.

The Manager undertakes the full responsibility of sourcing, analyzing, and managing all assets on behalf of the Company. Every investment undergoes a rigorous and thorough due diligence process, incorporating financial, market, and demographic analyses to ensure the acquisition supports our strategic objectives and aligns with the Company's long-term vision.

Through these efforts, Cityfunds seeks to democratize access to residential real estate investment, providing investors with exposure to appreciating property markets in a structured and efficient manner.

As of December 31, 2024, Cityfunds I, LLC held ___ active investments in Homeshares and single-family rental properties compared to a portfolio of 85 active investments in Homeshares and single-family rental properties as of December 31, 2023. The growth in the number of active investments was driven by increased demand for Homeshares and higher levels of investor participation.

**Emerging Growth Company**

Although the Company is not currently subject to reporting requirements under the Securities and Exchange Act of 1934 (the "Exchange Act"), it may in the future elect to register securities under the Exchange Act, in which case it may qualify as an emerging growth company, as defined in the JOBS Act. If we elect to do so, we will be required to publicly report on an ongoing basis as an emerging growth company, as defined in the JOBS Act, under the reporting rules set forth under the Exchange Act. For so long as we remain an emerging growth company, we may take advantage of certain exemptions from various reporting requirements that are applicable to other Exchange Act reporting companies that are not emerging growth companies, including, but not limited to:

● not
 being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act;

● being
 permitted to comply with reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements;
 and

● being
 exempt from the requirement to hold a non-binding advisory vote on executive compensation and stockholder approval of any golden
 parachute payments not previously approved.

In addition, Section 107 of the JOBS Act also provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. In other words, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to take advantage of the benefits of this extended transition period. Our financial statements may therefore not be comparable to those of companies that comply with such new or revised accounting standards.

We would expect to take advantage of these reporting exemptions until we are no longer an emerging growth company. We would remain an emerging growth company for up to five years, or until the earliest of (i) the last day of the first fiscal year in which our total annual gross revenues exceed $1 billion; (ii) the date that we become a large accelerated filer as defined in Rule 12b-2 under the Exchange Act, which would occur if the market value of our membership interests that are held by non-affiliates exceeds $700 million as of the last business day of our most recently completed second fiscal quarter; or (iii) the date on which we have issued more than $1 billion in non-convertible debt during the preceding three-year period.

**Offering Results**

As of the date of this filing, the offering of each series' interests of the Company pursuant to Regulation A has been paused. The pause of the offerings does not affect the Company's ongoing reporting obligations under Regulation A.

The table below provides key details, including the NAV calculation date, the Series, and the updated price per membership interest (referred to as "share price"). For further information, please refer to the official filings available on the SEC website. The share prices are determined in accordance with the "Valuation and Net Asset Value (NAV) Policies" outlined in the offering circular and the corresponding section of this report. The Manager reserves the right to adjust share prices periodically, as disclosed in the pricing supplements.

Below is the NAV per interest since December 31, 2023, as determined in accordance with our valuation policy. Linked in the table is the relevant Form 253G2 detailing each NAV evaluation method, incorporated by reference herein.

---

| | | | |
|:---|:---|:---|:---|
| **Calculation Date** | **Series** | **NAV Per Interest** | |
| May 31, 2023 | Austin | 10.69 | [Form 253G2](https://www.sec.gov/Archives/edgar/data/1874979/000149315223022896/form253g2.htm) |
| May 31, 2023 | Dallas | 10.59 | [Form 253G2](https://www.sec.gov/Archives/edgar/data/1874979/000149315223022896/form253g2.htm) |
| May 31, 2023 | Miami | 10.77 | [Form 253G2](https://www.sec.gov/Archives/edgar/data/1874979/000149315223022896/form253g2.htm) |
| June 30, 2023 | Austin | 10.75 | [Form 253G2](https://www.sec.gov/Archives/edgar/data/1874979/000149315223025861/form253g2.htm) |
| June 30, 2023 | Dallas | 10.63 | [Form 253G2](https://www.sec.gov/Archives/edgar/data/1874979/000149315223025861/form253g2.htm) |
| June 30, 2023 | Miami | 10.80 | [Form 253G2](https://www.sec.gov/Archives/edgar/data/1874979/000149315223025861/form253g2.htm) |
| July 31, 2023 | Austin | 10.80 | [Form 253G2](https://www.sec.gov/Archives/edgar/data/1874979/000149315223030379/form253g2.htm) |
| July 31, 2023 | Dallas | 10.89 | [Form 253G2](https://www.sec.gov/Archives/edgar/data/1874979/000149315223030379/form253g2.htm) |
| July 31, 2023 | Miami | 10.92 | [Form 253G2](https://www.sec.gov/Archives/edgar/data/1874979/000149315223030379/form253g2.htm) |
| July 31, 2023 | Tampa | 11.05 | [Form 253G2](https://www.sec.gov/Archives/edgar/data/1874979/000149315223030379/form253g2.htm) |
| August 31, 2023 | Austin | 10.88 | [Form 253G2](https://www.sec.gov/Archives/edgar/data/1874979/000149315223033746/form253g2.htm) |
| August 31, 2023 | Dallas | 11.08 | [Form 253G2](https://www.sec.gov/Archives/edgar/data/1874979/000149315223033746/form253g2.htm) |
| August 31, 2023 | Miami | 11.11 | [Form 253G2](https://www.sec.gov/Archives/edgar/data/1874979/000149315223033746/form253g2.htm) |
| August 31, 2023 | Tampa | 11.08 | [Form 253G2](https://www.sec.gov/Archives/edgar/data/1874979/000149315223033746/form253g2.htm) |
| September 30, 2023 | Dallas | 11.28 | [Form 253G2](https://www.sec.gov/Archives/edgar/data/1874979/000149315223038528/form252g2.htm) |
| September 30, 2023 | Tampa | 11.13 | [Form 253G2](https://www.sec.gov/Archives/edgar/data/1874979/000149315223038528/form252g2.htm) |
| September 30, 2023 | Austin | 10.96 | [Form 253G2](https://www.sec.gov/Archives/edgar/data/1874979/000149315223040025/form253g2.htm) |
| September 30, 2023 | Miami | 11.25 | [Form 253G2](https://www.sec.gov/Archives/edgar/data/1874979/000149315223040025/form253g2.htm) |
| October 31, 2023 | Dallas | 11.30 | [Form 253G2](https://www.sec.gov/Archives/edgar/data/1874979/000149315223042914/form253g2.htm) |
| October 31, 2023 | Tampa | 11.15 | [Form 253G2](https://www.sec.gov/Archives/edgar/data/1874979/000149315223042914/form253g2.htm) |
| October 31, 2023 | Austin | 10.98 | [Form 253G2](https://www.sec.gov/Archives/edgar/data/1874979/000149315223044197/form253g2.htm) |
| October 31, 2023 | Miami | 11.31 | [Form 253G2](https://www.sec.gov/Archives/edgar/data/1874979/000149315223044197/form253g2.htm) |
| November 30, 2023 | Dallas | 11.38 | [Form 253G2](https://www.sec.gov/Archives/edgar/data/1874979/000149315223046250/form253g2.htm) |
| November 30, 2023 | Tampa | 11.20 | [Form 253G2](https://www.sec.gov/Archives/edgar/data/1874979/000149315223046250/form253g2.htm) |
| November 30, 2023 | Austin | 11.01 | [Form 253G2](https://www.sec.gov/Archives/edgar/data/1874979/000149315224001927/form253g2.htm) |
| November 30, 2023 | Miami | 11.35 | [Form 253G2](https://www.sec.gov/Archives/edgar/data/1874979/000149315224001927/form253g2.htm) |
| December 31, 2023 | Dallas | 11.44 | [Form 253G2](https://www.sec.gov/Archives/edgar/data/1874979/000149315224004112/form253g2.htm) |
| December 31, 2023 | Tampa | 11.24 | [Form 253G2](https://www.sec.gov/Archives/edgar/data/1874979/000149315224004112/form253g2.htm) |
| December 31, 2023 | Austin | 11.05 | [Form 253G2](https://www.sec.gov/Archives/edgar/data/1874979/000149315224005993/form253g2.htm) |
| December 31, 2023 | Miami | 11.39 | [Form 253G2](https://www.sec.gov/Archives/edgar/data/1874979/000149315224005993/form253g2.htm) |
| January 31, 2024 | Dallas | 11.48 | [Form 253G2](https://www.sec.gov/Archives/edgar/data/1874979/000149315224007946/form253g2.htm) |
| January 31, 2024 | Tampa | 11.28 | [Form 253G2](https://www.sec.gov/Archives/edgar/data/1874979/000149315224007946/form253g2.htm) |
| January 31, 2024 | Austin | 11.07 | [Form 253G2](https://www.sec.gov/Archives/edgar/data/1874979/000149315224009827/form253g2.htm) |
| January 31, 2024 | Miami | 11.44 | [Form 253G2](https://www.sec.gov/Archives/edgar/data/1874979/000149315224009827/form253g2.htm) |
| February 29, 2024 | Dallas | 11.50 | [Form 253G2](https://www.sec.gov/Archives/edgar/data/1874979/000149315224011729/form253g2.htm) |
| February 29, 2024 | Tampa | 11.31 | [Form 253G2](https://www.sec.gov/Archives/edgar/data/1874979/000149315224011729/form253g2.htm) |
| February 29, 2024 | Austin | 11.09 | [Form 253G2](https://www.sec.gov/Archives/edgar/data/1874979/000149315224014332/form253g2.htm) |
| February 29, 2024 | Miami | 11.47 | [Form 253G2](https://www.sec.gov/Archives/edgar/data/1874979/000149315224014332/form253g2.htm) |
| March 31, 2024 | Dallas | 11.54 | [Form 253G2](https://www.sec.gov/Archives/edgar/data/1874979/000149315224017031/form253g2.htm) |
| March 31, 2024 | Tampa | 11.36 | [Form 253G2](https://www.sec.gov/Archives/edgar/data/1874979/000149315224017031/form253g2.htm) |
| March 31, 2024 | Austin | 11.03 | [Form 253G2](https://www.sec.gov/Archives/edgar/data/1874979/000149315224019635/form253g2.htm) |
| March 31, 2024 | Miami | 11.51 | [Form 253G2](https://www.sec.gov/Archives/edgar/data/1874979/000149315224019635/form253g2.htm) |
| April 30, 2024 | Denver | 10.22 | [Form 253G2](https://www.sec.gov/Archives/edgar/data/1874979/000149315224021927/form253g2.htm) |
| June 30, 2024 | Dallas | 11.69 | [Form 253G2](https://www.sec.gov/Archives/edgar/data/1874979/000149315224027927/form253g2.htm) |
| June 30, 2024 | Tampa | 11.78 | [Form 253G2](https://www.sec.gov/Archives/edgar/data/1874979/000149315224027927/form253g2.htm) |
| July 31, 2024 | Miami | 11.70 | [Form 253G2](https://www.sec.gov/Archives/edgar/data/1874979/000149315224032026/form253g2.htm) |
| July 31, 2024 | Houston | 10.51 | [Form 253G2](https://www.sec.gov/Archives/edgar/data/1874979/000149315224032026/form253g2.htm) |
| August 31, 2024 | Phoenix | 10.21 | [Form 253G2](https://www.sec.gov/Archives/edgar/data/1874979/000149315224037796/form253g2.htm) |

---

The company did not publish any NAV updates during 2024 after August 31, 2024.

**Critical Accounting Policies** 

Our accounting policies will conform with GAAP. The preparation of financial statements in conformity with GAAP will require us to use judgment in the application of accounting policies, including making estimates and assumptions. These judgments may affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. We intend to make these estimates and assumptions in an appropriate manner and in a way that accurately reflects our financial condition. We will continually test and evaluate our estimates and assumptions using our historical knowledge of the business, as well as other factors, to ensure that they are reasonable for reporting purposes. However, actual results may differ from our estimates and assumptions.

We believe our critical accounting policies govern the significant judgments and estimates used in the preparation of our financial statements. Please refer to Note 2, "Summary of Significant Accounting Policies," to the Consolidated Financial Statements for a more thorough discussion of our accounting policies and procedures.

**Valuation and Net Asset Value (NAV) Policies**

Our policy is to calculate and restate the net asset value ("NAV") per interest for each series on a rolling six-month basis; however, the Manager retains discretion to update the NAV earlier or later than scheduled, as it deems necessary, based on market conditions or other relevant factors. Each series follows a designated rolling schedule for NAV recalculation, ensuring that not all series are recalculated in the same month, and each series' NAV is updated systematically throughout the year. The NAV is determined based on the estimated value of the series' investments, including related liabilities, as of the end of the scheduled period, using input from automated valuation models (AVMs) or appraisals, as well as factors such as liquid asset prices, distribution accruals, and estimated revenues, fees, and expenses. Although our policy is to calculate and restate NAV on a rolling six-month basis, we did not publish any NAV updates during 2024 after August 31, 2024.

An Automated Valuation Model (AVM) for residential real estate is a technology-driven tool that uses algorithms and data analytics to estimate the market value of a property. AVMs typically pull data from various sources, such as property tax records, recent sales of comparable homes, market trends, and geographic data, to provide an estimated value of a home without requiring a physical inspection.

Additionally, NAV updates are filed via Supplement Form 253(g)(2), which includes a detailed breakdown of the components of the NAV for each series. This ensures transparency and provides investors with a comprehensive view of how each series' NAV is calculated. The updated NAV per interest for each series will also be published on the Cityfunds Platform, which will contain the most recent offering circular, including any supplements or amendments.

It is important to note that the determination of NAV for the interests of each series is not intended to comply with fair value standards under GAAP, and the NAV may not necessarily reflect the current market price of our assets under prevailing market conditions. Accordingly, the NAV per interest should not be viewed as the amount that would be realized upon a sale or liquidation of assets or interests, nor as a substitute for GAAP-based financial information, and it may differ materially from the value ultimately realized by investors. In cases where an independent appraisal may be deemed necessary—such as when the Manager anticipates uncertainty in accurately estimating the value of a series-owned real estate asset, or when third-party market values for comparable properties may be unavailable or inconsistent—the Manager intends to engage an appraiser with expertise in residential real estate assets to act as an independent valuation expert. This planned approach is designed to ensure reliable and objective valuation support when required. However, the independent valuation expert is not responsible for preparing or determining the NAV per interest.

Our objective is to provide a reasonable estimate of the market value of the assets held by each series at the end of each fiscal quarter. These assets will primarily consist of residential real estate investments. The valuation of these real estate assets, conducted by both independent sources and our internal accountants, is subject to various assumptions and judgments that may not always prove accurate. Different assumptions or judgments would likely result in different estimates of the value of the real estate underlying each series' assets. Additionally, while we aim to evaluate and provide an updated NAV per interest on a rolling six-month basis, the actual market value of these interests may fluctuate more frequently, meaning the NAV in effect for any given month may not necessarily represent the price that would be paid for series interests in a market transaction. Furthermore, our published NAV may not immediately reflect certain material events if they are unknown or their financial impact is not readily quantifiable. As a result, discrepancies in the NAV may arise, potentially benefiting or disadvantaging members who redeem or purchase interests or existing members.

**Operating Results**

***Revenues***

The Company's primary revenue is generated from the payoff of Homeshare investments. Additional revenue sources include rental income and, when applicable, the sale of single-family rental properties. This diversified revenue approach supports the Company's overall financial performance and aligns with its long-term strategic objectives. The Company saw an increase in revenue in 2024 compared to 2023 due to a higher volume of Homeshare payoffs, reflecting the growing maturity of the Company's investment portfolio. All revenues generated by each series for the years ended December 31, 2024 and 2023 are listed in the table below. Such amounts are based on the audited financial statements of the Company and each series included in this Annual Report on Form 1-K:

---

| | | |
|:---|:---|:---|
| **REVENUES** | **REVENUES** | **REVENUES** |
| **Applicable Series** | **December 31, 2024** | **December 31, 2023** |
| Austin | $43840 | $43860 |
| Dallas | 31460 | 37612 |
| Miami |  | 31500 |
| Tampa | 15540 | 20879 |
| Denver |  |  |
| Houston |  |  |
| Phoenix |  |  |
| Los Angeles |  |  |
| Nashville |  |  |
| Las Vegas | - | - |
|  | **90840** | **133851** |

---

***Cost of Revenues***

The following table summarizes the total cost of revenues incurred by each series for the years ended December 31, 2024 and 2023. The year-over-year increase in the cost of revenues was primarily driven by the cost to acquire Homeshare investments. As the volume of Homeshare acquisitions increased significantly in 2024 compared to 2023, the associated costs also rose. Such amounts are based on the audited financial statements of the Company and each series included in this Annual Report on Form 1-K:

---

| | | |
|:---|:---|:---|
| **COST OF REVENUES** | **COST OF REVENUES** | **COST OF REVENUES** |
| **Applicable Series** | **December 31, 2024** | **December 31, 2023** |
| Austin | $35214 | $61245 |
| Dallas | 70291 | 77015 |
| Miami | 55778 | 46967 |
| Tampa | 118143 | 44967 |
| Denver | 8350 |  |
| Houston | 33810 |  |
| Phoenix | 8550 |  |
| Los Angeles | 36341 |  |
| Nashville |  |  |
| Las Vegas | - | - |
|  | **366477** | **229655** |

---

***Operating Expenses***

The following table summarizes the total operating expenses incurred by each series for the years ended December 31, 2024 and 2023. The year-over-year increase in operating expenses was primarily due to an increase in the number of series within the Company generating activity and also doing so at a greater volume during 2024 as compared to 2023. This heightened activity resulted in higher professional expenses, as well as increased managerial expenses required to support the growing operations of these series. Such amounts are based on the audited financial statements of the Company and each series included in this Annual Report on Form 1-K:

---

| | | |
|:---|:---|:---|
| **OPERATING EXPENSES** | **OPERATING EXPENSES** | **OPERATING EXPENSES** |
| **Applicable Series** | **December 31, 2024** | **December 31, 2023** |
| Austin | $77003 | $97087 |
| Dallas | 78498 | 67206 |
| Miami | 43736 | 62789 |
| Tampa | 60911 | 49343 |
| Denver | 25322 | 19480 |
| Houston | 24535 | 16752 |
| Phoenix | 19898 | 16853 |
| Los Angeles | 21261 | 19953 |
| Nashville | 8179 | 16853 |
| Las Vegas | 8179 | 16953 |
|  | **367522** | **380269** |

---

***Other Income (Expenses)***

The following table summarizes the total of such expenses incurred by each series for the years ended December 31, 2024 and 2023. Other income (expenses) increased significantly in 2024, primarily due to the substantial increase in Homeshare acquisitions. Unrealized gains from the fair value of assets are recorded in this category, and the combination of a larger number of Homeshare investments and an appreciating portfolio of existing assets contributed to the increase in unrealized gains. However, it is important to note that not all assets experienced positive unrealized gains. Market conditions and submarket-specific housing trends can adversely impact the potential future gains of certain assets, underscoring the inherent variability in asset valuation. Such amounts are based on the audited financial statements of the Company and each series included in this Annual Report on Form 1-K:

---

| | | |
|:---|:---|:---|
| **OTHER INCOME (EXPENSES)** | **OTHER INCOME (EXPENSES)** | **OTHER INCOME (EXPENSES)** |
| **Applicable Series** | **December 31, 2024** | **December 31, 2023** |
| Austin | $(158260) | $41085 |
| Dallas | (150235) | 233071 |
| Miami | (81395) | 215548 |
| Tampa | (76524) | 114804 |
| Denver | 28059 |  |
| Houston | 21216 |  |
| Phoenix | 993 |  |
| Los Angeles | (35144) |  |
| Nashville |  |  |
| Las Vegas | - | - |
|  | **(451290)** | **604508** |

---

***Liquidity and Capital Resources***

From inception, the Manager has financed the business activities of each series. Upon the first closing of a particular series offering, the Manager is reimbursed from the proceeds of the relevant offering. Until such time as the series generates sufficient cash flows from operations, the Manager may cover any deficits through capital contributions, which may be reimbursed upon closing of the relevant offering. The Manager also reserves the right to delay the collection of any reimbursements to a later time at its discretion.

***Cash and Cash Equivalent Balances***

Cash is held at the series level. The following table summarizes the cash and cash equivalents held by each series as of December 31, 2024 and December 31, 2023. The year-over-year increase in cash and cash equivalents was primarily due to an increase in capital raised from the offerings during 2024. This additional capital provided the necessary cash inflows to support the Company's expanding investment activities. Such amounts are based on the audited financial statements of the Company and each series included in this Annual Report on Form 1-K:

---

| | | |
|:---|:---|:---|
| **CASH AND CASH EQUIVALENTS** | **CASH AND CASH EQUIVALENTS** | **CASH AND CASH EQUIVALENTS** |
| **Applicable Series** | **December 31, 2024** | **December 31, 2023** |
| Austin | $40344 | $130925 |
| Dallas | 14107 | 122253 |
| Miami | 89764 | 74445 |
| Tampa | 23736 | 52239 |
| Denver | 21954 | 140006 |
| Houston | 500 |  |
| Phoenix | 20255 |  |
| Los Angeles | 32113 |  |
| Nashville | 1000 | 1000 |
| Las Vegas | 1000 | 1000 |
|  | **244773** | **522928** |

---

**Our Investments**

Our investment strategy is designed to provide diversified exposure to the residential real estate market through two primary investment types: home equity investments and single-family rental properties. Each series manages a separate pool of assets and investments. The following details the status of these investments as of December 31, 2024, along with the dispositions of rental properties and payoffs of home equity investments that occurred during the reporting period.

***Home Equity Investments ("Homeshares")***

As of December 31, 2024, each series holds home equity investments by providing capital to homeowners in exchange for a percentage equity stake in their owner-occupied homes. These investments allow the series to participate in the appreciation or depreciation of the home's value over time, while the homeowner retains occupancy and control of the property. The Company does not own these homes outright but holds an equity interest based on the terms of the home equity agreements.

Due to the privacy and confidentiality associated with owner-occupied properties, individual addresses and homeowner details are not disclosed. Instead, we provide aggregate information on the number of home equity investments, the total value of the equity interest, and the geographic distribution of these investments.

---

| | | | |
|:---|:---|:---|:---|
| **Series** | **Number of Equity Investments** | **Aggregate Value of Equity Stake ($)** | **Metropolitan Statistical Area (MSA)** |
| Austin | 31 | 1413993 | Austin |
| Dallas | 41 | 2492875 | Dallas |
| Miami | 19 | 1697119 | Miami |
| Tampa | 28 | 2301128 | Tampa |
| Denver | 2 | 192823 | Denver |
| Houston | 6 | 613327 | Houston |
| Phoenix | 3 | 181216 | Phoenix |
| Los Angeles | 6 | 750618 | Los Angeles |
| Nashville |  |  | Nashville |
| Las Vegas |  |  | Las Vegas |

---

***Payoffs of Home Equity Investment***

Several homeowners repaid their home equity investments during the reporting period ending December 31, 2024. These payoffs reflect the appreciation or depreciation of the home's value, and the Company realized gains or losses based on the terms of the equity agreements.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Series** | **Number of Payoffs** | **Total Payoff Amount ($)** | **Gain/Loss ($)** | **Gain/Loss (%)** |
| Austin | 2 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;74247 | 9247 | 12.45 |
| Dallas | 4 | 267379 | 39029 | 14.60 |
| Miami | 4 | 167588 | 27588 | 16.46 |
| Tampa | 3 | 189660 | 28660 | 15.11 |
| Denver |  |  |  |  |
| Houston |  |  |  |  |
| Phoenix |  |  |  |  |
| Los Angeles |  |  |  |  |
| Nashville |  |  |  |  |
| Las Vegas |  |  |  |  |

---

 ****

***Single-Family Rental Properties***

As of December 31, 2024, each series may also hold single-family rental properties as part of its portfolio. These properties generate rental income and may appreciate in value over time. The Company actively manages these properties, ensuring optimal rental performance and property maintenance.

We provide information on the number of rental properties held by each series, their aggregate value, and rental income generated during the reporting period ending on December 31, 2024.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Series** | **Number of Rental Properties** | **Aggregate Property Value ($)** | **Rental Income ($)** | **Metropolitan Statistical Area (MSA)** |
| Austin | 2 | 618295 | 43820 | Austin |
| Dallas | 1 | 385608 | 31460 | Dallas |
| Miami |  |  |  | Miami |
| Tampa | 1 | 338589 | 15540 | Tampa |
| Denver |  |  |  | Denver |
| Houston |  |  |  | Houston |
| Phoenix |  |  |  | Phoenix |
| Los Angeles |  |  |  | Los Angeles |
| Nashville |  |  |  | Nashville |
| Las Vegas |  |  |  | Las Vegas |

---

During the reporting period ending December 31, 2024, the Company sold one single family property in Miami, generating sale proceeds of $465,000 and a net gain of $32,986.

**ITEM 3. DIRECTORS AND OFFICERS**

**General**

The manager of the Company is Nada Asset Management, LLC, a Delaware limited liability company.

The nature of our business to be conducted or promoted by us must at all times be to engage in any lawful act or activity for which LLCs may be organized under the Delaware Limited Liability Company Act.

All executive officers of the Company are employees of the Manager or its affiliates. The executive offices of the Manager are located at 1315 Manufacturing Street, Dallas, TX 75207. The telephone number for the Manager's executive offices is (972) 445-7320.

**Executive Officers**

---

| | | | |
|:---|:---|:---|:---|
| **Executive Officer** | **Position Held with Our Company (and the Manager)** | **Age** | **Term of Office** |
| Tore Steen | Principal Executive Officer | 55 | Began June 2024 |
| John Green | Principal Financial Officer; Former Principal Executive Officer | 39 | Began July 2024; April 2021 –<br> September 2024 |

---

**Biographical Information**

**Tore Steen** is CEO and President of Nada Holdings, Inc since June 2024 and a member of the Board of Directors of Nada since December 2023. Previously, Tore co-founded and served as CEO of CrowdStreet, Inc., a leading technology enabled investment platform for commercial real estate, where he led the company from the initial concept phase through the growth stages to become the largest online real estate investment marketplace, with over $4 billion invested, $50 million annual revenue, and over 200 employees. In 2020, he was recognized as one of the Top 50 FinTech CEOs by The Financial Technology Report. Currently, he continues to be involved with CrowdStreet as a board member. Prior to co-founding CrowdStreet, Tore was a founding team member of JanRain, where he led sales, marketing, products and services, taking the open-source technology platform to launch and commercialization of a full suite of SaaS solutions in the online social identity management space. Tore was instrumental in growing the business from an early concept to a business that delivering enterprise solutions to clients such as NewsCorp, Universal Music Group, Sears.com, and Disney Channel, and also in the eventual sale of the company to Akamai. Earlier in his career he held business and corporate development roles with EarthLink, WebTrends, and AAA along with banking and management consulting roles with US Bancorp and Ernst & Young. Tore earned an MBA from Duke University Fuqua School of Business and a BA in Political Science from the University of Notre Dame.

**John Green** is a co-founder of Nada Holdings, Inc., and served as CEO and President from its inception in November 2018 until June 2024, where he managed all corporate vision, business model development, and expansion strategies executed across all service verticals. Currently, John serves as COO and CFO of Nada. Prior to co-founding Nada Holdings, Mr. Green served as Strategic Advisor for Vámonos Credit, LLC, from November 2017 to June 2018, focusing on services tailored to Hispanic consumers in real estate transactions. From November 2012 to June 2018, Mr. Green was Vice President of Strategy and Innovation at Pacific Union Financial, LLC, a top 10 independent mortgage lender, where he led growth strategy, technology implementation, risk management, and market entry initiatives. Mr. Green also held a management position in Quality Control at JPMorgan Chase's mortgage division from 2009 to November 2012. Before entering financial services, Mr. Green had a career as a professional recording and touring artist from 2005 to 2009, releasing two albums. He has been a member of the American Society of Composers, Authors, and Publishers since 2006 and is an active member of the Forbes Finance Council.

**The Manager and the Operating Agreement**

The Manager is responsible for overseeing the management of our business and affairs, including handling day-to-day operations and executing our investment strategy. The Manager and its officers are not obligated to dedicate all of their time to our business but are only required to devote such time as is necessary to fulfill their duties.

The Manager will perform its responsibilities in accordance with the terms of the Operating Agreement. The relationship between the Manager and the Company, as well as the investors, is contractual in nature, rather than fiduciary. Additionally, we have agreed to limit the liability of the Manager and to indemnify the Manager against certain liabilities, as provided in the Operating Agreement. Indemnification includes expenses such as attorney's fees and, in certain circumstances, judgments, fines and settlement amounts actually paid or incurred in connection with actual or threatened actions, suits or proceedings involving such person, except in certain circumstances where a person is adjudged to be guilty of gross negligence, fraud willful misconduct or bad faith.

The Operating Agreement further stipulates that, in exercising its rights as the managing member, the Manager may consider only its own interests and any other factors it deems appropriate, without any duty or obligation (fiduciary or otherwise) to consider the interests of the Company, any series of interests, or any interest holders. The Manager will not be held to any different standards under the Operating Agreement, the Delaware Limited Liability Company Act, or any other applicable law, rule, or regulation. Moreover, the Operating Agreement explicitly states that the Manager has no duty (including fiduciary duty) to the Company, any series, or any interest holders.

The Manager has not sponsored any prior real estate investment programs. Therefore, this offering circular does not include any information regarding the prior performance of the Manager or its affiliates, meaning you will not have access to historical performance data when deciding whether to invest in our series.

**Responsibilities of our Manager**

The responsibilities of the Manager include:

● **Investment Advisory, Origination and Acquisition Services** such as approving and overseeing our overall investment strategy, which will consist
 of elements such as investment selection criteria, diversification strategies and asset disposition strategies;

● **Offering Services** such as the development of this offering, including the determination of its specific terms;

● **Asset Management Services** such as investigating, selecting, and, on our behalf, engaging and conducting business with such persons
 as the Manager deems necessary to the proper performance of its obligations under the Operating Agreement, including but not limited
 to consultants, accountants, lenders, technical managers, attorneys, corporate fiduciaries, escrow agents, depositaries, custodians,
 agents for collection, insurers, insurance agents, developers, construction companies and any and all persons acting in any other
 capacity deemed by the Manager necessary or desirable for the performance of any of the services under the Operating Agreement;

● **Accounting and Other Administrative Services** such as maintaining accounting data and any other information concerning our activities as
 will be required to prepare and to file all periodic financial reports and returns required to be filed with the Commission and any
 other regulatory agency, including annual financial statements, and managing and performing the various administrative functions
 necessary for our day-to-day operations;

● **Investor Services** such as managing communications with our investors, including, for example, answering phone calls and preparing and
 sending written and electronic reports;

● **Financing Services** such as monitoring and overseeing the service of our debt facilities and other financings, if any; and

● **Disposition Services** such as evaluating and approving potential asset dispositions, sales, or liquidity transactions.

**Compensation of Executive Officers**

We do not currently have any employees nor do we currently intend to hire any employees who will be compensated directly by our company. Each of our executive officers, who are also executive officers of the Manager, manages our day-to-day affairs, oversees the review, selection and recommendation of investment opportunities, services acquired properties and monitors the performance of these properties to ensure that they are consistent with our investment objectives. Each of these individuals receives compensation for his or her services, including services performed for us on behalf of the Manager, from the Manager. We do not intend to pay any compensation to these individuals.

**Compensation of the Manager**

The Manager will receive compensation and reimbursement for costs incurred relating to our series offerings (e.g., Offering Expenses and Acquisition Expenses). Neither the Manager nor any of its affiliates will receive any selling commissions or dealer manager fees in connection with this or other series offerings. See "Management—Management Compensation" in our offering circular and Note 8, "Related Party Transactions" to the Consolidated Financial Statements for further details.

**ITEM 4. SECURITY OWNERSHIP OF MANAGEMENT AND CERTAIN SECURITYHOLDERS**

The Company is managed by Nada Management, LLC, the Manager. The Manager currently does not own, and is not expected to own at the closing of any series offering, any of the interests offered herein.

The Manager or an affiliate of the Company may purchase interests in a series of the Company on the same terms offered to investors. Additionally, the Manager may acquire interests in a series of the Company in the event an acquisition loan remains outstanding and is not repaid prior to its maturity date, in which case the outstanding balance of such acquisition loan will be converted into series interests under the same terms as those in the applicable series offering.

The address of Nada Management, LLC is 1315 Manufacturing Street, Dallas, TX 75207.

**ITEM 5. INTEREST OF MANAGEMENT AND OTHERS IN CERTAIN TRANSACTIONS**

See Management Compensation section below for a description of the fees paid to the Manager. We believe the terms obtained or consideration that we paid or received, as applicable, in connection with such transactions were comparable to terms available or the amounts that would be paid or received, as applicable, in arm's-length transactions.

**Management Compensation**

---

| | | |
|:---|:---|:---|
| **Form of Compensation and Recipient** | **Determination of Amount** | **Estimated Amount** |
| Asset Management Fee – Nada Asset Management, LLC | The Manager will receive from each series a quarterly asset management fee equal to 0.375% (1.5% annually) of the value of the interests of that series, payable quarterly in arrears. In addition, pursuant to the operating agreement, the Manager will receive reimbursements for out-of-pocket expenses related to the organization and offerings of each series (up to a maximum of 3% of the gross offering proceeds per series offering), as well as for expenses incurred in the operation of the series and the acquisition of properties, and for services provided by third parties. The Manager may also be entitled to receive a portion of any applicable property management fees and property disposition fees. For operating accounts maintained by the Manager with third-party banks, the Manager is entitled to any interest earned on the cash balances in those accounts. The Manager reserves the right to waive any fees or reimbursements at its sole discretion. |  |
| Acquisition Fee – Nada Asset Management, LLC | The Manager will be entitled to receive an acquisition fee equal to 1.0% of the purchase price for any single-family home acquired by a series. This fee does not apply to the acquisition of Homeshares. |  |
| Tech Fee – Affiliate of the Manager | An affiliate of the Manager will be entitled to receive a monthly Technology Fee ("Tech Fee") equal to $10.00 for each Homeshare and single-family rental property owned by each series. |  |
| Sourcing Fee – Affiliate of the Manager (1) | An affiliate of the Manager will be entitled to receive a Sourcing Fee on each Homeshare acquired by a series, equal to 5.0% of the affiliate's investment cost for owner-occupied properties and 7.0% of the affiliate's investment cost for investment properties. The collection of this fee is at the sole discretion of the affiliate. This fee does not apply to the acquisition of single family rental properties. |  |
| Reimbursement of Expenses – Nada Asset Management, LLC | The Manager will be entitled to reimbursement for out-of-pocket expenses incurred in connection with (i) the organization of the Company and the series offerings, (ii) the operation of the Company, including the acquisition and disposition of properties, and (iii) the retention of third parties to provide necessary services to the Company. Such reimbursement will not include the Manager's general overhead, employee compensation, utilities, or technology expenses borne by the Manager. |  |
| Fees from Other Services – Affiliates of the Manager or Third Parties | We may engage third parties, including affiliates of the Company, to provide necessary services related to our investments or operations, including administrative services, construction, origination, brokerage, leasing, development, property oversight, and other property management services. Any such engagements will be conducted on market terms and at prevailing market rates. |  |

---

***(1)***  ***Homeshares – Sourcing Fee -*** Nada Holdings, Inc., an affiliate of the Company, originates Homeshares investments through its wholly-owned
 subsidiary, Nada Loans, LLC. Upon the closing of a Homeshares agreement, the lienholder of the Homeshares investment is Nada Investments,
 LLC, a separate wholly-owned subsidiary of Nada Holdings, Inc. Nada Investments, LLC holds ownership of the Homeshares asset until
 such time as a series of the Company raises sufficient funds through its series offering to acquire the Homeshares asset by purchasing
 the option purchase premium and paying the fee described below.

Upon the sale of the Homeshares asset from Nada Investments, LLC to a series, a fee is payable by the series to Nada Investments, LLC. The transaction is formalized through a "Homeshares Equity Investment Sale Agreement" entered into between Nada Investments, LLC, as seller, and the series acquiring the Homeshares asset, as purchaser. The Homeshares Equity Investment Sale Agreement includes a schedule detailing the assets purchased and the associated fee for each Homeshares asset. Pursuant to the terms of the agreement, Nada Investments, LLC will service the Homeshares interest, which will be held in trust by Nada Custody, LLC for the benefit of the purchasing series.

**ITEM 6. OTHER INFORMATION**

None.

**ITEM 7. FINANCIAL STATEMENTS**

**CITYFUNDS I, LLC AND SUBSIDIARIES** 

**CONSOLIDATED FINANCIAL STATEMENTS** 

**DECEMBER 31, 2024 AND 2023**

CITYFUNDS I, LLC AND SUBSIDIARIES

DECEMBER 31, 2024 AND 2023

<u>CONTENTS</u>

---

| | |
|:---|:---|
|  | PAGE |
| [Independent Auditor's Report](#sd_001) | F-1 |
| [Consolidated Financial Statements](#ab_001) |  |
| [Consolidated Balance Sheets](#sd_002) | F-3 |
| [Consolidated Statements of Operations](#sd_003) | F-4 |
| [Consolidated Statements of Changes in Members' Equity](#sd_004) | F-5 |
| [Consolidated Statements of Cash Flows](#sd_005) | F-6 |
| [Notes to Financial Statements](#sd_006) | F-7 |
| [Supplemental Schedules](#sww_001) |  |
| [Consolidating Balance Sheets](#sww_002) | F-30 |
| [Consolidating Statements of Operations](#sww_003) | F-32 |

---

**Certified Public Accountants and Advisors**

**A PCAOB Registered Firm**

**713-489-5635 <u>bartoncpafirm.com</u> Cypress, Texas**

**<u>INDEPENDENT AUDITOR'S REPORT</u>**

To the Members and Management of<br> Cityfunds I, LLC and Subsidiaries

**Report on the Audit of the Consolidated Financial Statements and Supplemental Schedules**

**Opinion**

We have audited the accompanying consolidated balance sheets of Cityfunds I, LLC, and Subsidiaries as of December 31, 2024 and 2023, and the related consolidated statements of operations, changes in members' equity, and cash flows for the years then ended, and the related notes to the consolidated financial statements. The supplemental schedules are presented for purposes of additional analysis and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audits of the consolidated financial statements.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial position of Cityfunds I, LLC and Subsidiaries as of December 31, 2024 and 2023, and the results of its operations and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.

**Basis for Opinion**

We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audits of the Consolidated Financial Statements section of our report. We are required to be independent of Cityfunds I, LLC, and Subsidiaries and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

**Substantial Doubt About the Entity's Ability to Continue as a Going Concern**

The accompanying consolidated financial statements have been prepared assuming that the Company and all of its series will continue as a going concern. As discussed in Note 2 to the consolidated financial statements, the Company has suffered recurring losses from operations, has generated negative cash flows from operating activities, and has historically relied on equity and debt financing to fund its operations. These conditions raise substantial doubt about the ability of the Company and its series to continue as a going concern. Management's evaluation of the events and conditions and management's plans regarding these matters are also described in Note 2. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. Our opinion is not modified with respect to this matter.

***Responsibilities of Management for the Consolidated Financial Statements***

 ****

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about Cityfunds I, LLC, and Subsidiaries' ability to continue as a going concern for one year after the date that the consolidated financial statements are issued or when applicable, one year after the date that the consolidated financial statements are available to be issued.

***Auditor's Responsibilities for the Audits of the Consolidated Financial Statements***

 ****

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists.

The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the consolidated financial statements.

In performing an audit in accordance with GAAS, we:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Exercise
 professional judgment and maintain professional skepticism throughout the audit.

● Identify
 and assess the risks of material misstatement of the consolidated financial statements, whether
 due to fraud or error, and design and perform audit procedures responsive to those risks.
 Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures
 in the consolidated financial statements.

● Obtain
 an understanding of internal control relevant to the audit in order to design audit procedures
 that are appropriate in the circumstances, but not for the purpose of expressing an opinion
 on the effectiveness of Cityfunds I, LLC, and Subsidiaries' internal control. Accordingly,
 no such opinion is expressed.

● Evaluate
 the appropriateness of accounting policies used and the reasonableness of significant accounting
 estimates made by management, as well as evaluate the overall presentation of the consolidated
 financial statements.

● Conclude
 whether, in our judgment, there are conditions or events, considered in the aggregate, that
 raise substantial doubt about Cityfunds I, LLC, and Subsidiaries' ability to continue
 as a going concern for one year from the issuance of the report.

***Supplemental Schedules***

 ****

Our audits were conducted for the purpose of forming an opinion on the consolidated financial statements as a whole. The accompanying supplementary information is presented for purposes of additional analysis and is not a required part of the consolidated financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare consolidated financial statements. The information has been subjected to the auditing procedures applied in the audits of the consolidated financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the consolidated financial statements or to the consolidated financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the consolidated financial statements as a whole.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audits, significant audit findings, and certain internal control–related matters that we identified during the audits.

![](partii_002.jpg)

Cypress, Texas<br> January 9, 2026

**CITYFUNDS I, LLC AND SUBSIDIARIES<br> CONSOLIDATED BALANCE SHEETS**

---

| | | |
|:---|:---|:---|
|  | **As of**<br> **December 31,**<br> **2024** | **As of**<br> **December 31,**<br> **2023** |
| **<u>ASSETS</u>** |  |  |
| <u>Current assets</u> |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $244773 | $522928 |
| &nbsp;&nbsp;&nbsp;Restricted cash | 8367 |  |
| &nbsp;&nbsp;&nbsp;Due from related parties | 492907 | 66653 |
| &nbsp;&nbsp;&nbsp;Prepaid expense and other current assets | 481 | 2669 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 746528 | 592250 |
| <u>Non-current assets</u> |  |  |
| &nbsp;&nbsp;&nbsp;Home equity investments, at fair value | 9643096 | 4345579 |
| &nbsp;&nbsp;&nbsp;Single family rental investment properties, net | 1342492 | 1996826 |
| &nbsp;&nbsp;&nbsp;Note receivable - related parties | 1539202 | - |
| Total non-current assets | 12524790 | 6342405 |
| Total assets | $13271318 | $6934655 |
| **<u>LIABILITIES AND MEMBERS' EQUITY</u>** |  |  |
| <u>Current liabilities</u> |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $21820 | $25744 |
| &nbsp;&nbsp;&nbsp;Due to related parties | 431402 | 616261 |
| &nbsp;&nbsp;&nbsp;Other payable | 13617 | 10600 |
| &nbsp;&nbsp;&nbsp;Notes payable, current-term, net of debt issuance costs | 1096 | 629805 |
| Total current liabilities | 467935 | 1282410 |
| &nbsp;&nbsp;&nbsp;Notes payable - related parties | 2791126 | 50000 |
| &nbsp;&nbsp;&nbsp;Notes payable, long-term, net of debt issuance costs | 1082029 | 839600 |
| &nbsp;&nbsp;&nbsp;Revolving credit line - related party, net of debt issuance costs | 3338879 | - |
| Total non-current liabilities | 7212034 | 889600 |
| Total liabilities | 7679969 | 2172010 |
| <u>Members' equity</u> |  |  |
| Members' equity | $5591349 | $4762645 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total members' equity | 5591349 | 4762645 |
| Total liabilities and members' equity | $13271318 | $6934655 |

---

See accompanying notes to consolidated financial statements

**CITYFUNDS I, LLC AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF OPERATIONS**

---

| | | |
|:---|:---|:---|
|  | **For the Years Ended** | **For the Years Ended** |
|  | **December 31,** | **December 31,** |
|  | **2024** | **2023** |
| Revenues, net | $90840 | $133851 |
| Cost of revenues | 366477 | 229655 |
| Gross loss | (275637) | (95804) |
| Operating cost and expenses |  |  |
| &nbsp;&nbsp;&nbsp;General and administrative | 367522 | 380269 |
| &nbsp;&nbsp;&nbsp;Total operating expenses | 367522 | 380269 |
| Net loss from operations | (643159) | (476073) |
| Other income (expense) |  |  |
| &nbsp;&nbsp;&nbsp;Gain on settlement of homeshares equity investments | 109827 | 52811 |
| &nbsp;&nbsp;&nbsp;Losses on the sale of single-family rental properties | (5796) |  |
| &nbsp;&nbsp;&nbsp;Interest expense | (511958) | (165027) |
| &nbsp;&nbsp;&nbsp;Unrealized gain (loss) on change in fair value of home equity investments | (97058) | 716724 |
| &nbsp;&nbsp;&nbsp;Interest Income from notes receivable | 53695 |  |
| &nbsp;&nbsp;&nbsp;Total other income (expense) | (451290) | 604508 |
| Net income (loss) | (1094449) | 128435 |
| &nbsp;&nbsp;&nbsp;Weighted average member units outstanding – basic and diluted | 580113 | 282401 |
| Net income (loss) per member unit – basic and diluted | $(1.89) | $0.45 |

---

See accompanying notes to consolidated financial statements

**CITYFUNDS I, LLC AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF CHANGES IN MEMBERS' EQUITY**

**FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023** 

---

| | | |
|:---|:---|:---|
|  | **Cityfunds I, LLC** | **Cityfunds I, LLC** |
|  | **Member Units** | **Amount** |
| Balance at December 31, 2022 | 134526 | $1221059 |
| &nbsp;&nbsp;&nbsp;Issuance of membership units in Reg D offering, net of offering costs |  |  |
| &nbsp;&nbsp;&nbsp;Issuance of membership units in Reg CF offering, net of offering costs | 31511 | 337250 |
| &nbsp;&nbsp;&nbsp;Issuance of membership units in Reg A offering, net of offering costs | 284062 | 2953082 |
| &nbsp;&nbsp;&nbsp;Issuance of membership units in Reg A offering, reward shares | 11955 | 122819 |
| &nbsp;&nbsp;&nbsp;Net income | - | 128435 |
| Balance at December 31, 2023 | 462054 | $4762645 |
| &nbsp;&nbsp;&nbsp;Issuance of membership units in Reg D offering, net of offering costs | 214 | 2500 |
| &nbsp;&nbsp;&nbsp;Issuance of membership units in Reg CF offering, net of offering costs | 42465 | 457000 |
| &nbsp;&nbsp;&nbsp;Issuance of membership units in Reg A offering, net of offering costs | 138245 | 1437241 |
| &nbsp;&nbsp;&nbsp;Issuance of membership units in Reg A offering, reward shares | 2556 | 26412 |
| &nbsp;&nbsp;&nbsp;Net income | - | (1094449) |
| Balance at December 31, 2024 | 645534 | $5591349 |

---

See accompanying notes to consolidated financial statements

**CITYFUNDS I, LLC AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

---

| | | |
|:---|:---|:---|
|  | **For The Years Ended** | **For The Years Ended** |
|  | **December 31,** | **December 31,** |
|  | **2024** | **2023** |
| Cash flows from operating activities: |  |  |
| Net (loss) income | $(1094449) | $128435 |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net (loss) income to net cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Unrealized loss (gain) on change in fair value of home equity investments | 97058 | (716724) |
| &nbsp;&nbsp;&nbsp;Loss on sale of single family rental investments | 5796 |  |
| &nbsp;&nbsp;&nbsp;Depreciation expense | 56238 | 76746 |
| &nbsp;&nbsp;&nbsp;Interest Income from notes receivable | (47654) |  |
| &nbsp;&nbsp;&nbsp;Interest expense | 193697 |  |
| &nbsp;&nbsp;&nbsp;Amortization of debt issuance costs | 70104 |  |
| &nbsp;&nbsp;&nbsp;(Increase) decrease in assets: |  |  |
| &nbsp;&nbsp;&nbsp;Accounts receivable |  | 1800 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other assets | 2188 | 1097 |
| &nbsp;&nbsp;&nbsp;Due from related parties | (352188) |  |
| Increase (decrease) in liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | (3924) | 25744 |
| &nbsp;&nbsp;&nbsp;Other payables | 3017 | (11261) |
| &nbsp;&nbsp;&nbsp;Due to related parties | (378556) | 25686 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in operating activities | (1448673) | (468477) |
| Cash flows from investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;Purchase of single family rental properties |  | (14428) |
| &nbsp;&nbsp;&nbsp;Purchase of home equity investments | (6014092) | (2427722) |
| &nbsp;&nbsp;&nbsp;Proceeds from home equity investments | 619517 |  |
| &nbsp;&nbsp;&nbsp;Proceeds from sale of single family rental investment properties | 592300 |  |
| &nbsp;&nbsp;&nbsp;Cash advanced on notes receivable | (1669682) |  |
| &nbsp;&nbsp;&nbsp;Principal collected on notes receivable | 130480 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (6341477) | (2442150) |
| Cash flows from financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds from issuance of notes payable | 4393675 | 1519405 |
| &nbsp;&nbsp;&nbsp;Principal payment on notes payable | (2073183) | (1512593) |
| &nbsp;&nbsp;&nbsp;Proceeds from revolving credit line | 4232000 |  |
| &nbsp;&nbsp;&nbsp;Principal payment on revolving credit line | (674259) |  |
| &nbsp;&nbsp;&nbsp;Debt issuance costs | (254612) |  |
| &nbsp;&nbsp;&nbsp;Proceeds from Reg CF offering | 457000 | 337250 |
| &nbsp;&nbsp;&nbsp;Proceeds from Reg A offering | 1499668 | 3027050 |
| &nbsp;&nbsp;&nbsp;Proceeds from Reg D offering | 2500 |  |
| &nbsp;&nbsp;&nbsp;Offering costs paid | (62427) | (17802) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by financing activities | 7520362 | 3353310 |
| Net increase in cash, cash equivalents and restricted cash | (269788) | 442683 |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents and restricted cash, beginning of year | 522928 | 80245 |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents and restricted cash, end of year | $253140 | $522928 |
| Reconciliation of cash, cash equivalents and restricted cash to the consolidated balance sheets |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $244773 | $522928 |
| &nbsp;&nbsp;&nbsp;Restricted cash | 8367 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total cash, cash equivalents, and restricted cash | 253140 | 522928 |
| Supplemental cash flow information: |  |  |
| &nbsp;&nbsp;&nbsp;Cash paid for interest expense | 248157 | 165027 |
| Supplemental non-cash information: |  |  |
| &nbsp;&nbsp;&nbsp;Reg A offering through due from related parties | $26412 | $66653 |

---

See accompanying notes to consolidated financial statements

CITYFUNDS I, LLC AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

**1.** **FORMATION AND ORGANIZATION** 

Cityfunds I, LLC (the "Company" or "Cityfunds") is a series limited liability company organized April 26, 2021 under the laws of Delaware that has been formed to permit public investment in a portfolio of residential real estate properties in a specific market, each portfolio of which will be held by a separate series of limited liability company interests, or "Series", that we have and intend to establish. As a Delaware series limited liability company, the debts, liabilities, obligations, and expenses incurred, contracted for or otherwise existing with respect to a particular Series are segregated and enforceable only against the assets of such Series, as provided under Delaware law. The Series consist of #Austin, #Dallas, #Miami, #Tampa, #Houston, #Nashville, #Phoenix, #Las Vegas, #Denver, and #Los Angeles (collectively, the "Series").

Cityfunds is a product designed to be index like by making investments across a city's specific residential real estate market promoting diversification. Cityfunds makes investments in residential real estate either directly or through our home equity investment product which we have termed ("Homeshares").

The Company is managed by Cityfunds Manager, LLC, a Delaware limited liability company (the "Manager" or "Managing Member").

Cityfunds currently does not operate in such a manner to qualify as a real estate investment trust ("REIT"). We believe our strategy and operations are aligned to achieve a status as a REIT in the future. We intend to elect to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code, commencing with the first taxable year in which we meet all applicable requirements to qualify as a REIT.

**2.** **GOING CONCERN** 

The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company is a business that has commenced planned principal operations and has generated revenues since inception. The Company's ability and each listed Series' ability to continue as a going concern for the next twelve months is dependent upon the Company's ability to raise sufficient capital from outside investors and deploy such to produce profitable operating results. No assurance can be given that the Company and each listed Series will be successful in these efforts. These factors, among others, raise substantial doubt about the ability of the Company and each listed Series to continue as a going concern for one year after the date that the consolidated financial statements are available to be issued. The consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The Company was incorporated on April 26, 2021, and has not generated significant revenues to date.

During the years ended December 31, 2024 and 2023, the Company had a net (loss) income of $(1,094,449) and $128,435, respectively. There was no positive cash flow from operating activities for the year ended December 31, 2024. As of December 31, 2024 and 2023, the Company's cash balance was $244,773 and $522,928, respectively. As of December 31, 2024 and 2023, the Company had a working capital (deficit) of $278,593 and $(690,160), respectively. These factors raise substantial doubt about the Company's ability to continue as a going concern. The Company expects to continue to generate operating losses for the foreseeable future. The accompanying consolidated financial statements do not include any adjustments as a result of this uncertainty.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's, and each of its series, ability to continue as a going concern. Management is required to perform this evaluation on an annual basis.

CITYFUNDS I, LLC AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

**2.** **GOING CONCERN (CONTINUED)** 

**Management Plans**

Throughout the next twelve months, the Company intends to fund its operations primarily from owner and third-party funding.

The Company requires capital for its contemplated activities. The Company's ability to raise additional capital is not guaranteed. The obtainment of 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. These conditions and the ability to successfully resolve these factors raise substantial doubt about the Company's ability to continue as a going concern. Because substantial doubt has not been alleviated, the accompanying consolidated financial statements have been prepared under the assumption that the Company will continue as a going concern. No adjustments have been made to the carrying amounts or classifications of assets and liabilities that may be necessary if the Company is unable to continue its operations.

**3.** **SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** 

**Principles of Reporting and Basis for Consolidation**

The accounting and reporting policies of the Company and each of its series conform to accounting principles generally accepted in the United States of America ("GAAP"). The accounting and reporting policies equally apply to each Series of Cityfunds I, LLC, and there are no differences in the policies amongst the Series. The accompanying consolidated financial statements include the accounts of Cityfunds I, LLC, and all of its series. All intercompany balances and transactions between Series within Cityfunds I, LLC are eliminated upon consolidation. The Company's fiscal year end is December 31.

**Use of Estimates**

The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities as of the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period.

Significant estimates made by management include, but are not limited to, the fair value for financial instruments, allowance for credit losses, the determination of the estimated useful lives of single-family residential properties, impairment assessments, and accrued liabilities. These estimates are based on management's best judgments using information available at the time the estimates are made. Actual results could differ materially from those estimates.

**Cash Equivalents, Restricted Cash, and Concentration of Cash Balance**

The Company considers all highly liquid securities with an original maturity of less than three months to be cash equivalents. The Company's cash and cash equivalents in bank deposit accounts, at times, may exceed federally insured limits.

Restricted cash consists of cash balances that are legally or contractually restricted as to use and therefore are not available for general operating purposes. The Company's restricted cash primarily relates to escrow (trust) accounts maintained by mortgage servicer in connection with the Company's mortgage loans. These escrow accounts are funded through monthly mortgage payments and are restricted for the payment of property taxes, insurance premiums, and other property-related obligations in accordance with the applicable loan agreements. Although such funds are held by third-party mortgage servicer, the Company retains ownership of the escrow balances, and any unused amounts are generally refundable to the Company.

CITYFUNDS I, LLC AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

**3.** **SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)** 

**Fair Value of Financial Instruments**

Accounting Standards Codification ("ASC") 820, *Fair Value Measurements* ("ASC 820"), specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect market assumptions. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The three levels of the fair value hierarchy are as follows:

Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 1 primarily consists of financial instruments whose value is based on quoted market prices such as exchange-traded instruments and listed equities.

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly (e.g., quoted prices of similar assets or liabilities in active markets, or quoted prices for identical or similar assets or liabilities in markets that are not active).

Level 3 - Unobservable inputs for the asset or liability. Financial instruments are considered Level 3 when their fair values are determined using pricing models, discounted cash flows or similar techniques and at least one significant model assumption or input is unobservable.

The carrying amounts reported in the consolidated balance sheets approximate their fair value.

**Revenue Recognition**

Accounting Standards Codification ("ASC") 606, *Revenue from Contracts with Customers* ("ASC 606") establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity's contracts to provide goods or services to customers.

Revenues are recognized when control of the promised goods or services are transferred to a customer, in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. The Company applies the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements:

1) identify the contract with a customer;

2) identify the performance obligations in the contract;

3) determine the transaction price;

4) allocate the transaction price to performance obligations in the contract; and

5) recognize revenue as the performance obligation is satisfied.

For the years ended December 31, 2024 and 2023, the Company recorded $90,840 and $133,851 revenues, respectively.

CITYFUNDS I, LLC AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

**3.** **SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)** 

**Accounts Receivable**

Accounts receivables are derived from products and services delivered to customers and are stated at their net realizable value. Each month, the Company reviews its receivables on a customer-by-customer basis and evaluates whether an allowance for doubtful accounts is necessary based on any known or perceived collection issues. Any balances that are eventually deemed uncollectible are written off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company had no outstanding accounts receivable as of December 31, 2024 and 2023, and accordingly, no allowance for doubtful accounts was recorded at December 31, 2024 and 2023.

**Other Income (Expense)**

Other income consists primarily of gains and losses arising from the payoff of Homeshares equity investments and from the sale of single-family rental properties. Gains or losses from Homeshares equity investment payoffs are recognized at a point in time when the underlying investment is paid off and the Company's right to receive the proceeds becomes fixed and determinable. Gains or losses from the sale of single-family rental properties are recognized at a point in time when control of the property transfers to the buyer, which generally occurs upon closing. The gain or loss is measured as the difference between the consideration received and the carrying amount of the property sold, including accumulated depreciation and any selling costs incurred.

**Organizational Costs**

In accordance with ASC 720, *Organizational Costs* ("ASC 720"), including accounting fees, legal fees, and costs of incorporation, are expensed as incurred.

**Offering Costs**

The Company complies with the requirements of ASC 340-10-S99-1, *Accounting for Offering Costs*. Prior to the completion of an offering, offering costs are capitalized. The deferred offering costs are charged to members' equity/(deficit) upon the completion of an offering or to expense if the offering is not completed.

In addition, the Company's Operating Agreement states that any operating or offering expenses incurred by the Manager will be reimbursed by the Company. As of December 31, 2024 and 2023, the Company has $62,427 and $17,802, respectively, in offering costs. In 2024 and 2023, the offerings related to these costs had closed and the proceeds from the offerings were recorded net of the offering costs in the consolidated statements of changes in members' equity.

**Real Estate and Impairment**

Property and equipment are carried at cost less accumulated depreciation. Depreciation is computed by using the straight-line basis over the estimated useful lives of the assets. When equipment is retired, its cost and the related accumulated depreciation are eliminated from the respective accounts, and gains or losses arising from the disposition are recognized in income. Maintenance, repairs, and minor renewals are charged to expense when incurred; betterments and major renewals and improvements, which materially prolong the lives of the assets, are capitalized.

The Company continuously evaluates, by property, whether there are any events or changes in circumstances indicating that the carrying amount of the series' properties may not be recoverable. To the extent an event or change in circumstance is identified, a property is considered to be impaired only if its carrying value cannot be recovered through estimated future undiscounted cash flows from the use and eventual disposition of the property. To the extent an impairment has occurred, the carrying amount of our investment in a property is adjusted to its estimated fair value.

CITYFUNDS I, LLC AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

**3.** **SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)** 

The process whereby the Company assesses properties for impairment requires significant judgment and assessment of factors that are, at times, subject to significant uncertainty. The Company evaluates multiple information sources and performs a number of internal analyses, each of which are important components of our process with no one information source or analysis being necessarily determinative. As of December 31, 2024 and 2023, no impairment was considered necessary.

**Related Party Transactions**

The Company and its individual Series may engage in transactions with entities under common control or management, including Cityfunds Yield LLC, Cityfunds Financing SPV LLC, Nada Investments, LLC and Nada Holdings, Inc. (collectively referred to as "affiliates"). These related-party entities provide financing, asset management, and administrative services that support the acquisition, management, and disposition of home equity investments and single-family rental properties.

From time to time, the Company enters into intercompany borrowings or advances with these affiliates to fund property acquisitions, operations, or working capital needs. Such borrowings are evidenced by promissory notes or loan agreements, which typically bear interest at stated rates and have defined repayment terms. Related party payables and receivables are presented separately in the accompanying financial statements.

Management believes that all related-party transactions are conducted at terms that approximate those that would be available in arm's-length transactions; however, because these arrangements are between affiliated entities, the terms may differ from those that would be negotiated with unrelated third parties.

**Income Taxes**

The Company is a limited liability company. Accordingly, under the Internal Revenue Code, all taxable income or loss flows through to its members. Therefore, no provision for income tax has been recorded in the consolidated financial statements. Income from the Company is reported and taxed to the members on their individual tax returns.

The Company complies with ASC 740, *Income Taxes* ("ASC 740") for accounting for uncertainty in income taxes recognized in a company's consolidated financial statements, which prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. ASC 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. Based on the Company's evaluation, it has been concluded that there are no significant uncertain tax positions requiring recognition in the Company's consolidated financial statements. The Company believes that its income tax positions would be sustained on audit and does not anticipate any adjustments that would result in a material change to its financial position.

The Company may in the future become subject to federal, state, and local income taxation though it has not been since its inception. The Company is not presently subject to any income tax audit in any taxing jurisdiction.

The Company intends to elect for each Series to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code, commencing with the taxable year ending December 31, 2023.

CITYFUNDS I, LLC AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

**3.** **SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)** 

**Commitments and Contingencies**

From time to time in the ordinary course of business, the Company may be subject to various claims, charges, and litigation. At December 31, 2024 and 2023, the Company did not have any pending claims, charges or litigation that were expected to have a material adverse impact on its financial position, results of operations or cash flows.

**Earnings/(Loss) per Membership Interest**

Upon completion of an offering, each Series intends to comply with accounting and disclosure requirements of ASC 260, *Earnings per Share* ("ASC 260")*.* For each Series, earnings (loss) per membership interest ("EPMI") will be computed by dividing net (loss) / income for a particular Series by the weighted average number of outstanding membership interests in that particular Series during the period.

**Reclassifications**

In the preparation of the current year's consolidated financial statements, certain reclassifications have been made to the prior year's accounts to conform to the current year's presentation for comparative purposes.

**Adopted Accounting Pronouncements**

On January 1, 2022, the Company adopted ASC 842. ASC 842 applies to all entities that enter into leases. The new standard applies to all entities that enter into leases. Lessees are required to report assets and liabilities that arise from leases. Lessor accounting has largely remained unchanged; however, certain refinements were made to conform with revenue recognition guidance in Accounting Standards Update ("ASU") 2014-09, *Revenue from Contracts with Customers* ("ASU 2014-09"), specifically related to the allocation and recognition of contract consideration earned from lease and non-lease revenue components. ASU 2016-02 contains certain practical expedients, which the Company has elected. The Company's exposure to ASC 842 is as a lessor. The Company has elected the practical expedient that allows lessors to avoid separating lease and non-lease components within a contract if certain criteria are met. The lessor's practical expedient election is limited to circumstances in which (i) the timing and pattern of revenue recognition are the same for the non-lease component and the related lease component and (ii) the combined single lease component would be classified as an operating lease. This practical expedient allows the Company the ability to combine the lease and non-lease components if the underlying asset meets the two criteria above.

On January 1, 2023, the Company adopted ASU 2016-13 *Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments* ("ASU 2016-13"). This standard replaced the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss ("CECL") methodology. CECL requires an estimate of credit losses for the remaining estimated life of the financial asset using historical experience, current conditions, and reasonable and supportable forecasts and generally applies to financial assets measured at amortized cost, such as accounts receivable. The adoption of ASU 2016-13 did not have a material impact on the Company's consolidated financial statements.

**New Accounting Pronouncements**

The Company has reviewed recently issued accounting pronouncements and plans to adopt those that are applicable to it. The Company does not expect the adoption of any other pronouncements to have an impact on its results of operations or financial position.

CITYFUNDS I, LLC AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

**4.** **HOME EQUITY INVESTMENTS ("HOMESHARES")** 

The Company enters into Homeshare agreements with homeowners that provide the Company with a right to participate in the future appreciation (or depreciation) of the underlying residential property. Under these arrangements, the homeowner agrees to a discounted property value at origination, and the Company pays an option purchase premium in exchange for an equity participation interest in the property's future value.

The Company's equity participation interest is expressed as an equity option percentage, which represents the Company's notional amount under the Homeshare arrangement. The equity option percentage is determined at origination based on the option purchase premium paid by the Company relative to the difference between the discounted market value of the property and the outstanding mortgage balance. The value of the Company's interest in a Homeshare arrangement is calculated by applying the equity option percentage to the difference between the current market value of the property and the discounted value established at origination.

Settlement of a Homeshare agreement is triggered upon the occurrence of a buy-out event, which may include the sale or refinancing of the property, the homeowner's breach of material covenants, or, at the homeowner's election, at any time during the contractual term. Upon settlement, the Company receives a cash payment based on the calculated value of its equity participation interest. Management has evaluated the Homeshare arrangements under ASC 815, Derivatives and Hedging, and concluded that the Homeshare agreements meet the definition of derivative instruments because (i) the arrangements have an underlying based on changes in the market value of the underlying residential property and a notional amount represented by the equity option percentage, (ii) the initial net investment, consisting of the option purchase premium paid at origination, is smaller than the investment that would otherwise be required to obtain a comparable exposure to changes in the property's value, and (iii) the arrangements provide for net cash settlement upon the occurrence of a buy-out event rather than through the delivery of the physical property. Accordingly, Homeshare arrangements are accounted for as derivative instruments and are measured at fair value on a recurring basis, with changes in fair value recognized in earnings.

The sale of the option means the series is investing in an intangible right, not the actual property. The immediate recognition of this as an asset on the balance sheet is of cost basis. The option purchase premium provides a basis for valuation of this asset.

The lien serves as collateral, indicating that if a homeowner defaults, the Company has a claim to the property. However, as a second lien, the primary lender has a superior claim. The exposure to property value fluctuations means the asset's value isn't stable. A future re-evaluation might be needed, particularly if there's significant property value depreciation. Income generation is irregular. The asset doesn't produce consistent returns. Instead, gains or losses are recognized when the homeowner repays the Homeshares.

The transaction of a Homeshare is recognized as the purchase of a derivative asset. The asset is recorded at fair value on the consolidated balance sheets, using the option purchase premium to establish its value. This premium serves as the basis for valuation, yet the asset's valuation is monitored and updated, if necessary, for impairment on a quarterly basis. The lien signifies that in the event of default by the homeowner, the Company has a secured interest in the property, subordinate to the primary lender.

The Company's Homeshare investments represent fractional equity interests in the future value of single-family residential properties. Homeshares are originated through option agreements with homeowners, under which the Company is entitled to receive a contractually defined percentage of the property's future market value (the "Homeshare Percentage"). Homeshare investments are measured at fair value on a recurring basis in accordance with ASC 820, Fair Value Measurement.

At the inception of each Homeshare option agreement, the estimated fair value of the underlying residential property is determined using independent third-party automated valuation models ("AVMs") and/or third-party appraisal reports. The Homeshare Percentage incorporates an exchange rate factor, as defined in the Homeshare agreement.

CITYFUNDS I, LLC AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

**4.** **HOME EQUITY INVESTMENTS ("HOMESHARES") (CONTINUED)** 

Valuation Methodology

The fair value of Homeshare investments is estimated using a valuation model that applies the Homeshare Percentage to the estimated current market value of the underlying property, adjusted for the expected timing of settlement and market participant return requirements. Estimated property values are derived primarily from third-party AVMs and appraisal reports. When multiple valuation sources are available, management exercises judgment in selecting the appropriate valuation input, considering factors such as consistency across valuation sources, recency of the valuation, observable market trends, and property-specific characteristics. Management evaluates the reasonableness of third-party valuation information by comparing results across multiple sources, assessing changes in market conditions, and reviewing internal valuation procedures.

Significant Unobservable Inputs (Level 3)

The fair value of the Company's Home Equity Investments is determined using valuation techniques that incorporate significant unobservable inputs. Because observable market prices are not available for these instruments, Home Equity investments are classified within Level 3 of the fair value hierarchy.

The following table summarizes the quantitative ranges of the significant unobservable inputs used in the valuation as of December 31, 2024:

---

| | |
|:---|:---|
| Unobservable Input | 2024 |
| Maximum rate of return cap | 18% – 24% |
| Rate of return cap (loss) | -10% |
| Option current holding term expired (years) | 0.1-2.35 |
| Contractual participation / option ownership percentage | 4.17%-73.54% |
| Option maturity terms remaining (years) | 7.65-9.9 |

---

The valuation model evaluates each homeshares based on its performance relative to contractual terms, including capped rate of return and loss-sharing provisions. Depending on whether the actual uncapped rate of return exceeds, falls within, or is below the contractual rate of return cap, the fair value is calculated using either a capped return methodology, a market-based uncapped value, or an adjusted value reflecting negative performance. The valuation incorporates time-weighted compounding based on the age of each investment.

At payoff, the Homeshare Payoff Value is determined by applying the Homeshare Percentage to the current market value of the home, allowing the Company's interest to capture a proportionate share of any appreciation.

The homeowner may elect to buy out the Homeshare at any time during the option term by paying the Homeshare Payoff Value, calculated as the Homeshare Percentage multiplied by the current market value of the home. If no buyout occurs by the end of the option term, the series may compel the sale of the home to recover the Homeshare Payoff Value.

Each Home Equity Agreement has a contractual term that commences on the effective date and expires upon the occurrence of the earliest triggering event. Triggering events generally include:

(a) the sale or transfer of ownership of the underlying property;

(b) a material violation of the covenant agreement by the homeowner; or

(c) the expiration date, which is typically ten years from the effective date.

CITYFUNDS I, LLC AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

**4.** **HOME EQUITY INVESTMENTS ("HOMESHARES") (CONTINUED)** 

The following table presents the Company's home equity investments measured at fair value on a recurring basis by level within the fair value hierarchy as of December 31, 2024 and 2023:

---

| | | |
|:---|:---|:---|
| Fair Value Hierarchy | 2024 | 2023 |
| Level 1 | $- | $- |
| Level 2 |  |  |
| Level 3 | 9643096 | 4345579 |
| Total | $9643096 | $4345579 |

---

Due to the variability in property values, a re-assessment of the asset's valuation may be necessary, particularly if there's a notable decrease in the property's market value. Realized revenue from this asset is realized in a non-periodic fashion; realized gains or losses are recognized contingent upon the occurrence of specific events such as the sale or refinancing of the home. Unrealized revenue is recognized periodically with changes in fair value.

The Company accounts for its Homeshares under ASC 815 Derivatives and Hedging. Homeshare is recognized and measured on the consolidated balance sheets at fair value. As of December 31, 2024 and 2023, the Company has invested $9,643,096 and $4,345,579, respectively, in home equity investments, which included unrealized (loss) gains on assets $(97,058) and $716,724, respectively, in the consolidated statements of operations for the years ended December 31, 2024 and 2023.

The following table presents Homeshare investments measured at fair value using Level 3 inputs and at cost as of December 31, 2024:

---

| | | |
|:---|:---|:---|
|  | **At Fair Value** | **At Cost** |
| #Austin | $1413993 | $1353810 |
| #Dallas | 2492875 | 2226177 |
| #Miami | 1697120 | 1523099 |
| # Tampa | 2301125 | 2135769 |
| # Houston | 613326 | 564860 |
| # Denver | 192823 | 167000 |
| # Phoenix | 181216 | 171000 |
| # Los Angeles | 750618 | 726825 |
| Home equity investment | $9643096 | $8868540 |

---

The following table presents Homeshare investments measured at fair value using Level 3 inputs and at cost as of December 31, 2023:

---

| | | |
|:---|:---|:---|
|  | **At Fair Value** | **At Cost** |
| #Austin | $1226547 | $1062310 |
| #Dallas | 1505973 | 1199987 |
| #Miami | 954509 | 691500 |
| # Tampa | 618550 | 480000 |
| # Houston | 40000 | 40000 |
| Home equity investment | $4345579 | $3473797 |

---

CITYFUNDS I, LLC AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

The following table presents a reconciliation of the beginning and ending balances of Homeshare investments measured at fair value using Level 3 inputs for the year ended December 31, 2024:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Beginning**<br> **balance** | **Additions** **(new investments)** | **Settlements** | **Change in fair**<br> **value** | **Ending**<br> **balance** |
| #Austin | $1226547 | $356500 | $(65002) | $(104052) | $1413993 |
| #Dallas | 1505973 | 1254540 | (228268) | (39370) | 2492875 |
| #Miami | 954509 | 996599 | (165243) | (88745) | 1697120 |
| # Tampa | 618550 | 1816769 | (161004) | 26810 | 2301125 |
| # Houston | 40000 | 524859 |  | 48467 | 613326 |
| # Denver |  | 167000 |  | 25823 | 192823 |
| # Phoenix |  | 171000 |  | 10216 | 181216 |
| # Los Angeles | - | 726825 | - | 23793 | 750618 |
| Total | $4345579 | $6014092 | $(619517) | $(97058) | $9643096 |

---

**5.** **SINGLE FAMILY RENTAL PROPERTIES** 

Certain of our investments in real estate will take the form of investments in single family rental properties.

A single-family residential property is acquired by the Company with the intent to generate income through rental payments from tenants and appreciation. The useful life of the single-family rental properties is 27.5 years. The properties were partially financed with notes payable to a financial institution (also see Note 7). As of December 31, 2024 and 2023, depreciation expenses were $56,238 and $76,746, respectively.

The Company's investment in single-family rental investments is as follows:

As of December 31, 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Rental**<br> **Investments** | **Investment** | **Accumulated**<br> **Depreciation** | **Single Family Rental**<br> **Properties, Net** |
| #Austin | 2 | $679013 | $(60718) | $618295 |
| #Dallas | 1 | 417900 | (32292) | 385608 |
| #Tampa | 1 | 366336 | (27747) | 338589 |
| Total | 4 | $1463249 | $(120757) | $1342492 |

---

As of December 31, 2023:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Rental**<br> **Investments** | **Investment** | **Accumulated**<br> **Depreciation** | **Single Family Rental**<br> **Properties, Net** |
| #Austin | 2 | $679013 | $(35992) | $643021 |
| #Dallas | 2 | 641549 | (31058) | 610491 |
| #Miami | 1 | 411843 | (20708) | 391135 |
| #Tampa | 1 | 366336 | (14157) | 352179 |
| Total | 6 | $2098741 | $(101915) | $1996826 |

---

CITYFUNDS I, LLC AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

**5.** **SINGLE FAMILY RENTAL PROPERTIES (CONTINUED)** 

During the year ended December 31, 2024, Series Dallas sold one single-family rental property for total gross proceeds of $185,000. After deducting seller credit and direct selling costs including broker commissions and escrow fees of $16,819, the Company recognized a realized loss of $38,782 compared to the property's carrying value of $206,963 at the disposal date.

During the year ended December 31, 2024, Series Miami sold one single-family rental property for total gross proceeds of $465,000. After deducting seller credit and direct selling costs including broker commissions and escrow fees of $40,879, the Company recognized a realized gain of $32,986 compared to the property's carrying value of $391,135 at the disposal date.

**6.** **NOTES RECEIVABLE** 

As of December 31, 2024, the Company held multiple promissory notes receivable totaling $1,378,895 from Nada Holdings, Inc., a related party under common control. These notes were executed on September 26, 2024 and October 29, 2024, bear interest at 13.5% and 12.0% per annum, respectively, and mature on September 26, 2026 and October 29, 2026.

As of December 31, 2024, the Company also held multiple promissory notes receivable totaling $160,307 from Cityfunds Portfolio Fund LLC, a related party under common control. Each note is supported by a written agreement specifying principal, stated interest rate, maturity date, and repayment terms. These notes generally bear interest at 6.5% per annum and mature between April 1, 2026 and December 30, 2026.

As of December 31, 2024, the aggregate principal outstanding totaled $1,539,202, with accrued interest receivable of $47,654, which is included in due from related parties (see Note 9). Interest income $53,695 is recognized using the stated interest rates over the term of the notes as earned. Management evaluated the collectability of these balances and determined that no allowance for credit losses was required as of December 31, 2024.

As of December 31, 2024, the notes receivable consisted of the following:

---

| | | | |
|:---|:---|:---|:---|
| **No.** | **Principal Balance** | **Interest Rate** | **Maturity Date** |
| 1 | $1273895 | 13.50% | 9/26/2026 |
| 2 | 105000 | 12.00% | 10/29/2026 |
| 3 | 20000 | 6.50% | 9/12/2026 |
| 4 | 75307 | 6.50% | 4/1/2026 |
| 5 | 30000 | 6.50% | 12/9/2026 |
| 6 | 35000 | 6.50% | 12/30/2026 |
| Total | $1539202 |  |  |

---

As of December 31, 2024, all notes receivable were classified as non-current.

**7.** **DEBT** 

Debts are recorded at principal amount outstanding, net of unamortized debt issuance costs. Debt issuance costs include loan origination fees, insurance costs, and deferred offering costs that are directly attributable to the issuance of debt. These costs are presented as a direct deduction from debts and are amortized to interest expense over the contractual term of the related debt using the effective interest method.

CITYFUNDS I, LLC AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

**7.** **DEBT (CONTINUED)** 

The following table summarizes the activity in debt for the year ended December 31, 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Description** | **Notes Payable-**<br> **unrelated**<br> **parties** | **Notes Payable-**<br> **related parties** | **Revolving**<br> **credit line-**<br> **related party** | **Total** |
| Balance at beginning of year | $1469405 | $50000 | $- | $1519405 |
| New borrowings |  | 4153675 | 4232000 | 8385675 |
| Refinancing of debts | 240000 |  |  | 240000 |
| Principal repayments | (660634) | (1412549) | (674259) | (2747442) |
| Debt issuance costs | (4482) |  | (250130) | (254612) |
| Amortization of debt issuance costs | 38836 | - | 31268 | 70104 |
| Balance at end of year | $1083125 | $2791126 | $3338879 | $7213130 |

---

The debt balance consists of the following current and non-current components:

---

| | | |
|:---|:---|:---|
|  | **December 31,**<br>**2024** | **December 31,**<br>**2023** |
| Debt, current | $1096 | $629805 |
| Debt, non-current | 7212034 | 889600 |
| Total | $7213130 | $1519405 |

---

**Notes Payable-unrelated parties**

During the year ended December 31, 2023, the Company entered into seven note payables with a financial institution, bearing an interest rate between 9.0% to 11.0%, with maturity dates ranging from September 2024 to January 2029. The note payables have been recorded as current liabilities and non-current liabilities in the consolidated balance sheets.

During the year ended December 31, 2024, the Company refinanced one note with an outstanding principal balance of $240,000, extending its maturity to January 1, 2028. In addition, the Company repaid two notes that reached their contractual maturity dates in 2024, and fully extinguished one note early in connection with the sale of a single-family rental property. As of December 31, 2024 and 2023, notes payable to unrelated parties had aggregate principal balances of $1,102,000 and $1,522,634, respectively. Unamortized debt issuance costs totaled $18,875 and $53,229, respectively, resulting in net carrying amounts of $1,083,125 and $1,469,405, respectively.

As of December 31, 2024, the notes payable-unrelated parties consisted of the following:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **#Series** | **Balance** | **Interest**<br> **Rate** | **Date Issue** | **Maturity**<br> **Date** |
| Austin | $255778 | 11.0% | 11/1/2023 | 10/1/2028 |
| Austin | 235518 | 10.5% | 9/8/2024 | 1/1/2028 |
|  | $491296 |  |  |  |
| Dallas | $364591 | 10.0% | 4/1/2023 | 4/1/2026 |
|  | 364591 |  |  |  |
| Tampa | $227238 | 11.0% | 12/30/2023 | 1/31/2029 |
| Total | $1083125 |  |  |  |

---

CITYFUNDS I, LLC AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

**7.** **DEBT (CONTINUED)** 

As of December 31, 2023, the notes payable-unrelated parties consisted of the following

---

| | | | | |
|:---|:---|:---|:---|:---|
| **#Series** | **Balance** | **Interest**<br> **Rate** | **Date Issue** | **Maturity**<br> **Date** |
| Austin | $254605 | 11.0% | 11/1/2023 | 10/1/2028 |
| Austin | 207175 | 10.5% | 9/8/2023 | 9/7/2024 |
|  | $461780 |  |  |  |
| Dallas | $359197 | 10.0% | 4/1/2023 | 4/1/2026 |
| Dallas | 126815 | 10.5% | 9/8/2023 | 9/7/2024 |
|  | $486012 |  |  |  |
| Miami | $295815 | 10.5% | 9/8/2023 | 9/7/2024 |
| Tampa | $225798 | 11.0% | 12/30/2023 | 1/31/2029 |
| Total | $1469405 |  |  |  |

---

**Notes Payable-related parties**

During the year ended December 31, 2024, the Company entered into multiple note payable agreements with Cityfunds Yield LLC, Groundfloor SPE LLC, and Cityfunds Portfolio Fund LLC, each of which is a related party under common control with the Company's managing member. The notes bear fixed interest rates ranging from 9.50% to 12.0% and have contractual maturities between May 2026 and April 2027. The proceeds from these notes were used by the Series of Cityfunds I, LLC to leverage home equity investments.

**Cityfunds Yield, LLC**

The table below summarizes the notes payable as of December 31, 2024 and 2023:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Note** | **#Series** | **Maturity**<br> **Date** | **Interest**<br> **Rate** | **Note**<br> **Amount** | **Balance at**<br> **December 31,**<br> **2024** |
| CF Tampa Note #1 | Tampa | 04/01/2027 | 9.5% | $14000 | $- |
| CF Tampa Note #2 | Tampa | 10/24/2027 | 9.5% | 549109 | 549109 |
|  |  |  |  | $563109 | $549109 |
| CF Dallas Note #1 | Dallas | 11/01/2026 | 9.5% | $50000 | $- |
| CF Dallas Note #2 | Dallas | 01/01/2027 | 9.5% | 53872 |  |
| CF Dallas Note #3 | Dallas | 01/01/2027 | 9.5% | 74975 |  |
| CF Dallas Note #4 | Dallas | 01/01/2027 | 9.5% | 200000 | - |
|  |  |  |  | $378847 | $- |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| <br>**Note** | <br>**#Series** | **Maturity**<br>**Date** | **Interest**<br>**Rate** |<br>**Note Amount** | **Balance at December 31,**<br>**2023** |
| CF Dallas Note #1 | Dallas | 11/01/2026 | 9.5% | $50000 | $50000 |

---

CITYFUNDS I, LLC AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

**7.** **DEBT (CONTINUED) Cityfunds Groundfloor SPE, LLC** 

The table below summarizes the notes payable as of December 31, 2024

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Note** | **#Series** | **Maturity**<br> **Date** | **Interest**<br> **Rate** | **Note**<br> **Amount** | **Balance at**<br> **December 31,**<br> **2024** |
| CF Austin Note #1 | Austin | 05/02/2026 | 12.0% | $53500 | $53500 |
| CF Austin Note #2 | Austin | 07/22/2026 | 12.0% | 60000 | 60000 |
|  |  |  |  | $113500 | $113500 |
| CF Dallas Note #1 | Dallas | 05/02/2026 | 12.0% | $36859 | $- |
| CF Dallas Note #2 | Dallas | 05/02/2026 | 12.0% | 75000 |  |
| CF Dallas Note #3 | Dallas | 05/02/2026 | 12.0% | 52761 |  |
| CF Dallas Note #4 | Dallas | 05/02/2026 | 12.0% | 100000 | 9622 |
| CF Dallas Note #5 | Dallas | 05/02/2026 | 12.0% | 100000 | 100000 |
| CF Dallas Note #6 | Dallas | 05/02/2026 | 12.0% | 61000 | 61000 |
| CF Dallas Note #7 | Dallas | 05/02/2026 | 12.0% | 71370 | 71370 |
| CF Dallas Note #8 | Dallas | 08/16/2026 | 12.0% | 156000 | 156000 |
| CF Dallas Note #9 | Dallas | 05/02/2026 | 12.0% | 45000 | 45000 |
|  |  |  |  | $697990 | $442992 |
| CF Houston CF #1 | Houston | 05/02/2026 | 12.0% | $75000 | $- |
| CF Houston CF #2 | Houston | 05/02/2026 | 12.0% | 65000 | 65000 |
| CF Houston CF #3 | Houston | 07/22/2026 | 12.0% | 85000 | 78005 |
| CF Houston CF #4 | Houston | 08/16/2026 | 12.0% | 158000 | 158000 |
|  |  |  |  | $383000 | $301005 |
| CF Tampa Note #1 | Tampa | 05/02/2026 | 12.0% | $81000 | $- |
| CF Tampa Note #2 | Tampa | 05/02/2026 | 12.0% | 104000 |  |
| CF Tampa Note #3 | Tampa | 05/02/2026 | 12.0% | 130000 |  |
| CF Tampa Note #4 | Tampa | 05/02/2026 | 12.0% | 22500 |  |
| CF Tampa Note #5 | Tampa | 06/17/2026 | 12.0% | 259696 | 48087 |
| CF Tampa Note #6 | Tampa | 07/22/2026 | 12.0% | 55000 | 55000 |
| CF Tampa Note #7 | Tampa | 07/22/2026 | 12.0% | 75000 | 75000 |
| CF Tampa Note #8 | Tampa | 07/22/2026 | 12.0% | 46000 | 46000 |
| CF Tampa Note #9 | Tampa | 08/16/2026 | 12.0% | 81837 | 81837 |
| CF Tampa Note #10 | Tampa | 10/02/2026 | <br> 12.0% | 170000<br>| 100000<br>|
| CF Tampa Note #11 | Tampa | 10/07/2026 | 12.0% | 105000 | 105000 |
|  |  |  |  | $1130033 | $510924 |
| CF Miami Note #1 | Miami | 06/17/2026 | 12.0% | $85000 | $85000 |
| CF Miami Note #2 | Miami | 07/22/2026 | 12.0% | 120000 | 120000 |
| CF Miami Note #3 | Miami | 08/16/2026 | 12.0% | 120750 | 120750 |
| CF Miami Note #4 | Miami | 05/02/2026 | 12.0% | 43150 | 43150 |
|  |  |  |  | $368900 | $368900 |

---

CITYFUNDS I, LLC AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

**7.** **DEBT (CONTINUED)** 

**Cityfunds Groundfloor SPE, LLC**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| <br>**Note** | <br>**#Series** | <br>**Maturity**<br>**Date** |<br>**Interest**<br>**Rate** |<br>**Note**<br>**Amount** | **Balance at**<br>**December 31,**<br>**2024** |
| CF Phoenix Note #1 | Phoenix | 07/22/2026 | 12.0% | $54000 | $- |
| CF LA Note #1 | Los Angeles | 08/16/2026 | 12.0% | $69600 | $- |
| CF LA Note #2 | Los Angeles | 10/29/2026 | 12.0% | 329475 | 329475 |
| CF LA Note #3 | Los Angeles | 10/29/2026 | 12.0% |  |  |
|  |  |  |  | 77000 | 77000 |
| CF LA Note #4 | Los Angeles | 11/13/2026 | 12.0% | 38221 | 38221 |
|  |  |  |  | $514296 | $444696 |

---

**Cityfunds Portfolio Fund LLC**

The table below summarizes the notes payable as of December 31, 2024

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| <br>**Note** | <br>**#Series** | <br>**Maturity**<br>**Date** |<br>**Interest**<br>**Rate** |<br>**Note**<br>**Amount** | **Balance at**<br>**December 31,**<br>**2024** |
| CF Miami Note #1 | Miami | 11/26/2026 | 6.5% | 160000 | 60000 |

---

**Revolving credit line- related party**

On September 28, 2024, the Company entered into a Revolving Credit Line Agreement (the "Credit Facility") with Cityfunds Financing SPV, LLC (the "Lender"), a related party under common control with the Company's managing member. The Credit Facility provides the Borrowing Entities access to a revolving line of credit of up to $10,000,000 through September 28, 2026, subject to collateral requirements and borrowing base limitations. The Borrowing Entities include Cityfunds I, LLC, certain related Cityfunds Series LLCs, Cityfunds Portfolio Fund, LLC, and United States Home Equity Fund, L.P. Borrowings under the facility bear interest at a fixed annual rate of 13.50% and mature on September 28, 2026. Amounts drawn accrue interest monthly and are repayable in accordance with the terms of the Agreement. All Borrowing Entities are jointly and severally liable under the Credit Facility.

Under the Credit Facility, the Borrowing Entities may request advances subject to (i) the $10 million total commitment and (ii) collateral coverage requirements that limit borrowings to a maximum loan-to-value ratio of 65%. Borrowings may be repaid and re-borrowed at any time prior to the credit termination date.

Deferred Financing Costs

The Company capitalized deferred financing costs incurred in connection with establishing the Credit Facility. These costs are recorded as a contra-liability to the Revolving Credit Lines, consistent with the presentation requirements of ASC 835-30. Deferred financing costs are amortized on a straight-line basis over the 24-month contractual term of the Credit Facility. Amortization of deferred financing costs is included in interest expense in the statements of operations.

---

| | |
|:---|:---|
| Description | Amount |
| Beginning balance, January 1, 2024 | $- |
| Add: New financing costs | 250130 |
| Less: Amortization | (31268) |
| Ending balance, December 31 | $218862 |

---

CITYFUNDS I, LLC AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

**7.** **DEBT (CONTINUED)** 

**Revolving credit line- related party (Continued)**

As of December 31, 2024, the Company had revolving credit lines with related parties with an aggregate principal balance of $3,557,741. Unamortized deferred financing costs totaled $218,862, resulting in a net carrying amount of $3,338,879.

As of December 31, 2024, the revolving credit lines with related parties consisted of the following:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **#Series** | **Balance** | **Interest**<br> **Rate** | **Date**<br> **Issue** | **Maturity Date** |
| Dallas | $102263 | 13.5% | 9/28/2024 | 9/28/2026 |
| Dallas | (6291) |  |  |  |
|  | $95972 |  |  |  |
| Houston | $277386 | 13.5% | 9/28/2024 | 9/28/2026 |
| Houston | (17064) |  |  |  |
|  | $260322 |  |  |  |
| Los Angeles | $1192436 | 13.5% | 9/28/2024 | 9/28/2026 |
| Los Angeles | (73355) |  |  |  |
|  | $1119081 |  |  |  |
| Miami | $654816 | 13.5% | 9/28/2024 | 9/28/2026 |
| Miami | (40282) |  |  |  |
|  | $614534 |  |  |  |
| Phoenix | $149788 | 13.5% | 9/28/2024 | 9/28/2026 |
| Phoenix | (9215) |  |  |  |
|  | $140573 |  |  |  |
| Tampa | $1181052 | 13.5% | 9/28/2024 | 9/28/2026 |
| Tampa | (72655) |  |  |  |
|  | $1108397 |  |  |  |
| Total Principal | $3557741 |  |  |  |
| &nbsp;&nbsp;&nbsp;Total Deferred financing costs | $(218862) |  |  |  |

---

Interest expense

Interest expense consists primarily of interest incurred on the Company's notes payable, revolving credit line, and other financing arrangements. During the years ended December 31, 2024 and 2023, interest expenses were $511,958 and $165,027, respectively.

CITYFUNDS I, LLC AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

**7.** **DEBT (CONTINUED)** 

Interest expense for the years ended December 31 was comprised of the following:

---

| | | |
|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** |
| Description | **2024** | **2023** |
| Notes Payable-unrelated parties | $124685 | $154190 |
| Notes Payable-unrelated parties, amortization of debt issuance costs | 38836 | 10087 |
| Notes Payable-related parties | 162548 | 750 |
| Revolving credit line- related party | 154621 |  |
| Revolving credit line-related party, amortization of debt issuance costs | 31268 | - |
| Total | $511958 | $165027 |

---

The following table summarizes the activity in interest expense for the years ended December 31, 2024 and 2023:

---

| | | |
|:---|:---|:---|
| Description | **2024** | **2023** |
| Beginning accrued interest payable | $- | $- |
| Interest expense recognized | 511958 | 165027 |
| Less: Non-cash interest components |  |  |
| Amortization of debt issuance costs | (70104) |  |
| Less: Cash interest paid | (248157) | (165027) |
| Ending accrued interest payable | $193697 | $- |

---

As of December 31, 2024, future maturities of debts are as follows:

---

| | |
|:---|:---|
| 2025 | $- |
| 2026 | 5945487 |
| 2027 | 549109 |
| 2028 | 491296 |
| 2029 | 227238 |
| Total | $7213130 |

---

**8.** **MEMBERS' EQUITY/ (DEFICIT)** 

Pursuant to the terms of the Company's limited liability operating agreement (the "Operating Agreement"), the Manager will provide certain management and advisory services to the Company and to each of its Series and their subsidiaries, as well as management team and appropriate support personnel. The Manager is a joint venture between Compound Asset Management, LLC, and Nada Asset Management LLC, a subsidiary of Nada Holdings Inc. ("Nada") and controlled by Nada.

The Manager will be responsible for directing the management of our business and affairs, managing our day-to-day affairs, and implementing our investment strategy. The Manager and its officers will not be required to devote all of their time to our business and are only required to devote such time to our affairs as their duties require. The Manager has a unilateral ability to amend the Operating Agreement and the allocation policy in certain circumstances without the consent of the investors. The investors only have limited voting rights in respect of the series in which they are invested.

CITYFUNDS I, LLC AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

**8.** **MEMBERS' EQUITY/ (DEFICIT) (CONTINUED)** 

Pursuant to the Operating Agreement, the Manager will receive fees and expense reimbursements for services relating to this Offering and the investment and management of our properties.

The Manager has sole discretion in determining what distributions, if any, are made to interest holders except as otherwise limited by law or the Operating Agreement. The Company expects the Manager to make distributions on a semi-annual basis. However, the Manager may change the timing of distributions or determine that no distributions shall be made in its sole discretion.

The debts, obligations, and liabilities of the Company, whether arising in contract, tort, or otherwise, are solely the debts, obligations, and liabilities of the Company, and no member of the Company is obligated personally for any such debt, obligation, or liability.

**Securities Offerings**

Proceeds from the offering of Series Interests are used to fund investments in the underlying property held by Series, to pay offering and organizational costs, and for other working capital and operating purposes of the Series, as permitted by the Company's offering documents.

**Series #Austin**

As of December 31, 2023, the Company closed on the sale of 2,755 Series #Austin interests under the exemption from registration provided by Regulation Crowdfunding ("Regulation CF") under Section 4(a)(6) of the Securities Act, net of offering costs, proceeds of $29,450.

As of December 31, 2023, the Company has offered, and may continue to offer, up to $7.0 million of Series #Austin Interests in any rolling twelve-month period pursuant to Tier II of Regulation A. The Regulation A offering was formally classified as closed by the U.S. Securities and Exchange Commission on October 22, 2024. The actual amounts raised for each Series were less than the maximum offering amount of $7.0 million.

During the year ended December 31, 2023, Series #Austin had sold 88,913 Series #Austin Interests, resulting in net proceeds of $916,163 after offering costs.

During the year ended December 31, 2024, Series #Austin had sold 14,709 Series #Austin Interests, resulting in net proceeds of $166,244 after offering costs.

**Series #Dallas**

During the year ended December 31, 2023, the Company closed on the sale of 13,721 Series #Dallas interests under the exemption from registration provided by Regulation CF under Section 4(a)(6) of the Securities Act, net of offering costs proceeds of $149,450. During the year ended December 31, 2024, the Company closed on the sale of 3,920 Series #Dallas interests under the exemption from registration provided by Regulation CF under Section 4(a)(6) of the Securities Act, net of offering costs, proceeds of $45,000.

As of December 31, 2023, the Company has offered, are offering, and may continue to offer up to $7 million in Series #Dallas Interests in any rolling twelve-month period under Regulation A. The Offering is being conducted pursuant to Tier II of Regulation A. The Regulation A offering was formally classified as closed by the U.S. Securities and Exchange Commission on October 22, 2024. During the year ended December 31, 2023, Series #Dallas sold 70,989 Series #Dallas Interests net of offering costs amount of $746,079. During the year ended December 31, 2024, Series #Dallas sold 26,773 Series #Dallas Interests net of offering costs, amount of $297,423.

CITYFUNDS I, LLC AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

**8.** **MEMBERS' EQUITY/ (DEFICIT) (CONTINUED)** 

**Series #Miami**

As of December 31, 2023, the Company closed on the sale of 9,145 Series #Miami interests under the exemption from registration provided by Regulation CF under Section 4(a)(6) of the Securities Act, net of offering costs, proceeds of approximately $99,450. No such Series # Miami interests were sold during the year ended December 31, 2024.

As of December 31, 2024, the Company closed on the sale of 214 Series # Miami Interests under Regulation D, Rule 506(c) under Section 4(a)(2) of the Securities Act, receiving $2,500 of net of offering costs, proceeds.

As of December 31, 2023, we have offered, are offering, and may continue to offer up to $7 million in Series #Miami Interests in any rolling twelve-month period under Regulation A. The Offering is being conducted pursuant to Tier II of Regulation A. The Regulation A offering was formally classified as closed by the U.S. Securities and Exchange Commission on October 22, 2024. During the year ended December 31, 2023, Series #Miami sold 50,873 Series #Miami Interests, net of offering costs, amount of $547,667. During the year ended December 31, 2024, Series #Miami sold 20,829 Series #Miami Interests, net of offering costs, amount of $227,134.

**Series #Tampa**

During the year ended December 31, 2023, the Company closed on the sale of 2,945 Series #Tampa interests under the exemption from registration provided by Regulation CF under Section 4(a)(6) of the Securities Act, net of offering costs, proceeds of $29,450.

During the year ended December 31, 2024, the Company closed on the sale of 20,745 Series #Tampa interests under the exemption from registration provided by Regulation CF under Section 4(a)(6) of the Securities Act, net of offering costs proceeds, of $234,000.

As of December 31, 2023, the Company has offered, are offering, and may continue to offer up to $7 million in Series #Tampa Interests in any rolling twelve-month period under Regulation A. The Offering is being conducted pursuant to Tier II of Regulation A. The Regulation A offering was formally classified as closed by the U.S. Securities and Exchange Commission on October 22, 2024. During the year ended December 31, 2023, Series #Tampa sold 68,132 Series #Tampa Interests for a gross amount of $694,887. During the year ended December 31, 2024, Series #Tampa sold 18,599 Series #Tampa Interests, net of offering costs, amount of $201,563.

**Series #Denver**

As of December 31, 2023, the Company closed on the sale of 2,945 Series #Denver interests under the exemption from registration provided by Regulation CF under Section 4(a)(6) of the Securities Act, net of offering costs, proceeds of $29,450. No such Series #Denver Interests were sold during the year ended December 31, 2024.

As of December 31, 2023, the Company has offered, are offering, and may continue to offer up to $7 million in Series #Denver Interests in any rolling twelve-month period under Regulation A. The Offering is being conducted pursuant to Tier II of Regulation A. The Regulation A offering was formally classified as closed by the U.S. Securities and Exchange Commission on October 22, 2024. During the year December 31, 2023, Series #Denver sold 16,321 Series #Denver Interests net of offering costs, amount of $163,215. During the year ended December 31, 2024, Series #Denver sold 15,017 Series #Denver Interests, net of offering costs, amount of $143,045.

CITYFUNDS I, LLC AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

**8.** **MEMBERS' EQUITY/ (DEFICIT) (CONTINUED)** 

**Series #Los Angeles**

During the year ended December 31, 2024, the Company closed on the sale of 800 Series # Los Angeles interests under the exemption from registration provided by Regulation CF under Section 4(a)(6) of the Securities Act, net of offering costs, proceeds of $8,000. No such Series # Los Angeles Interests were sold during the year ended December 31, 2023.

As of December 31, 2023, the Company has offered, are offering, and may continue to offer up to $7 million in Series #Los Angeles Interests in any rolling twelve-month period under Regulation A. The Offering is being conducted pursuant to Tier II of Regulation A. The Regulation A offering was formally classified as closed by the U.S. Securities and Exchange Commission on October 22, 2024. During the year ended December 31, 2023, Series #Los Angeles sold 539 Series #Los Angeles Interests, resulting in net proceeds of $5,390, after offering costs. During the year ended December 31, 2024, Series #Los Angeles sold 14,776 Series #Los Angeles Interests, resulting in net proceeds of $140,727, after offering costs.

**Series #Phoenix**

During the year ended December 31, 2024, the Company closed on the sale of 1,500 Series # Phoenix interests under the exemption from registration provided by Regulation CF under Section 4(a)(6) of the Securities Act, net of offering costs, proceeds of $15,000.

As of December 31, 2023, the Company has offered, are offering, and may continue to offer up to $7 million in Series #Phoenix Interests in any rolling twelve-month period under Regulation A. The Offering is being conducted pursuant to Tier II of Regulation A. The Regulation A offering was formally classified as closed by the U.S. Securities and Exchange Commission on October 22, 2024. During the year ended December 31, 2023, Series #Phoenix sold 220 Series #Phoenix Interests, resulting in gross proceeds of $2,200. During the year ended December 31, 2024, Series #Phoenix sold 11,179 Series #Phoenix Interests, resulting in net proceeds of $105,309, after offering costs.

**Series # Nashville**

As of December 31, 2023, the Company has offered, are offering, and may continue to offer up to $7 million in Series #Nashville Interests in any rolling twelve-month period under Regulation A. The Offering is being conducted pursuant to Tier II of Regulation A. The Regulation A offering was formally classified as closed by the U.S. Securities and Exchange Commission on October 22, 2024.During the year ended December 31, 2023, Series #Nashville sold 30 Series Nashville Interests for a gross amount of $300. During the year ended December 31, 2024, Series #Nashville sold 55 Series Nashville Interests for a gross amount of $560.

**Series # Houston**

During the year ended December 31, 2024, the Company closed on the sale of 15,500 Series # Houston interests under the exemption from registration provided by Regulation CF under Section 4(a)(6) of the Securities Act, net of offering costs, proceeds of $155,000.

In 2024, the Company has offered, are offering, and may continue to offer up to $7 million in Series # Houston Interests in any rolling twelve-month period under Regulation A. The Offering is being conducted pursuant to Tier II of Regulation A. The Regulation A offering was formally classified as closed by the U.S. Securities and Exchange Commission on October 22, 2024.

During the year ended December 31, 2024, Series #Houston sold 18,864 Series #Houston Interests, resulting in net proceeds of $181,646, after offering costs.

CITYFUNDS I, LLC AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

**8.** **MEMBERS' EQUITY/ (DEFICIT) (CONTINUED)** 

**Series # Las Vegas**

During 2024, the Company was permitted to offer up to $7 million of Series #Las Vegas Interests in any rolling twelve-month period pursuant to Regulation A. No offerings were conducted, and no such Series #Las Vegas Interests were sold during the years ended December 31, 2024 and 2023.

**9.** **RELATED PARTY TRANSACTIONS** 

As of December 31, 2024 and 2023, due to related parties consisted of the following:

---

| | | |
|:---|:---|:---|
| Description | 2024 | 2023 |
| Management fee and operating expenses (a) | $163180 | $185936 |
| Purchase of home equity investments (b) | 21750 | 301478 |
| Advance payment (c) |  | 128847 |
| Interest reserve (d) | 52775 |  |
| Interest payable (e) | 193697 | - |
| Total | $431402 | $616261 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Company entered into an agreement with its Manager on April 26, 2021 (inception), where each
 Series shall pay to the Manager a quarterly asset management fee equal to 0.375% (1.50% annually)
 of its value (as defined in the Company's Operating Agreement), payable quarterly in
 arrears. Each Series will also pay the Manager an acquisition fee equal to 1.00% of the purchase
 price for any single-family home that the Series may acquire. In addition, the Company's
 Operating Agreement
states that any operating or offering expenses incurred by the Manager and its affiliates will be reimbursed by the Company. During December
31, 2024 and 2023, the Manager and its affiliates have incurred $350,139 and $307,939, respectively in offering expenses and general
and administrative expenses of which $163,180 and $185,936 were payable as of December 31, 2024 and 2023, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;(b) During
 the year ended December 31, 2024 and 2023, the Company acquired Homeshare equity investments
 from Nada Investments, LLC, a related party, for total consideration of $879,846 and $1,891,639.
 This amount includes the applicable purchase premiums associated with the transaction. As
 of December 31, 2024 and 2023, the payable balance to Nada Investments, LLC was $21,750 and
 $301,478. These transactions were conducted in the normal course of business. The outstanding
 balance is due for settlement under mutually agreed payment terms.

&nbsp;&nbsp;&nbsp;&nbsp;(c) In
 December 2023, the Company received $128,847 advance from a related party, JM Yield Management,
 LLC as Managing Member of Cityfunds Yield Manager, LLC. The payable balance is due for settlement
 under mutually agreed payment terms. As of December 31, 2024, the balance was fully repaid.

&nbsp;&nbsp;&nbsp;&nbsp;(d) As
 of December 31, 2024, the Company received interest reserve payments totaling $52,775 from
 Nada Holdings, Inc., a related party under common control. The interest reserve represents
 funds advanced by the related party to be applied against future interest obligations under
 the applicable financing arrangements.

&nbsp;&nbsp;&nbsp;&nbsp;(e) During
 the year ended December 31, 2024, the Company entered into multiple promissory notes and
 a revolving credit line with related parties under common control. As of December 31, 2024,
 interest payable of $193,697 related to these arrangements was recorded in the accompanying
 consolidated balance sheet.

CITYFUNDS I, LLC AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

**9.** **RELATED PARTY TRANSACTIONS (CONTINUED)** 

As of December 31, 2024 and 2023, due from related parties consisted of the following:

---

| | | |
|:---|:---|:---|
| Description | 2024 | 2023 |
| Issued reward shares (f) | $18558 | $66653 |
| Paid off homeshares equity investment (g) | 142642 |  |
| Interest receivable (h) | 47654 |  |
| Interest reserve (i) | 284053 | - |
| Total | $492907 | $66653 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(f) During
 the year ended December 31, 2023, the Company issued 11,955 reward shares of membership units
 in a Reg A offering to Nada Holdings, Inc., a related party. The total value of the issued
 reward shares was $122,819. As of December 31, 2023, the outstanding receivable balance from
 Nada Holdings, Inc. related to this transaction was $66,653. During the year ended December
 31, 2024, the Company issued 2,556 reward shares of membership units in a Reg A offering
 to Nada Holdings, Inc., a related party. The total value of the issued reward shares was
 $26,412. As of December 31, 2024, the outstanding receivable balance from Nada Holdings,
 Inc. related to this transaction was $18,558.

&nbsp;&nbsp;&nbsp;&nbsp;(g) During
 the year ended December 31, 2024, the Company paid off its Homeshares equity investment to
 Nada Investments, LLC, a related party, for total consideration of $142,642. As of December
 31, 2024, the consideration had not yet been received. Accordingly, the outstanding balance
 of $142,642 was recorded as due from related parties in the accompanying consolidated balance
 sheet.

&nbsp;&nbsp;&nbsp;&nbsp;(h) During
 the year ended December 31, 2024, the Company held multiple promissory notes receivable from
 Nada Holdings, Inc. and Cityfunds Portfolio Fund, LLC, both of which are related parties
 under common control. During the year ended December 31, 2024, the Company recognized interest
 income of $53,695 related to these notes. As of December 31, 2024, interest receivable of
 $47,654 was outstanding and recorded as due from related parties in the accompanying consolidated
 balance sheet.

&nbsp;&nbsp;&nbsp;&nbsp;(i) During
 the year ended December 31, 2024, the Company made advance payments totaling $284,053 to
 Cityfunds Groundfloor SPE LLC, Cityfunds Financing SPV LLC, and Nada Investments, LLC, all
 of which are related parties under common control. These advance payments primarily relate
 to interest reserves associated with financing arrangements and homeshares equity investment
 transactions.

As of December 31, 2024, the advance payments had not yet been fully applied and were recorded in the accompanying consolidated balance sheet as due from related parties. The advance payments are expected to be applied against future interest obligations or purchase consideration under the respective agreements, in accordance with mutually agreed payment terms.

**9.** **SUBSEQUENT EVENTS** 

Management has evaluated all subsequent events through January 9, 2026, the date the consolidated financial statements were available to be issued. There are no additional material events requiring disclosure or adjustment to the consolidated financial statements other than the items below.

Contribution Agreement

On September 30, 2025, the Company entered into a Contribution Agreement with Cityfunds Financing SPV, LLC, Cityfunds Owner Trust 2024-1, and U.S. Home Equity Fund I, L.P. (the "Transferee"), all of which are related parties under common control.

Pursuant to the Contribution Agreement, the Company and affiliated series entities agreed to contribute certain home equity agreements, restricted cash, prepaid interest, notes receivable, and specified trust certificates (collectively, the "Contributed Assets") to the Transferee. In exchange, the Company received limited partnership interests in the Transferee, and the Transferee assumed certain liabilities directly related to the Contributed Assets, including interest payable and other related-party payables.

SUPPLEMENTAL SCHEDULES

**CITYFUNDS I, LLC**

**CONSOLIDATING BALANCE SHEETS**

**AS OF DECEMBER 31, 2024**

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **# Austin** | **# Dallas** | **# Miami** | **# Tampa** | **# Denver** | **# Houston** | **# Phoenix** | **# Los Angeles** | **# Nashville** | **# Las Vegas** | **Eliminated** | **Consolidated** |
| **<u>ASSETS</u>** | **<u>ASSETS</u>** | **<u>ASSETS</u>** | **<u>ASSETS</u>** | **<u>ASSETS</u>** | **<u>ASSETS</u>** | **<u>ASSETS</u>** | **<u>ASSETS</u>** | **<u>ASSETS</u>** | **<u>ASSETS</u>** | **<u>ASSETS</u>** | **<u>ASSETS</u>** | **<u>ASSETS</u>** |
| Current assets |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $40344 | $14107 | $89764 | $23736 | $21954 | $500 | $20255 | $32113 | $1000 | $1000 | $- | $244773 |
| &nbsp;&nbsp;&nbsp;Restricted cash | 8367 |  |  |  |  |  |  |  |  |  |  | 8367 |
| &nbsp;&nbsp;&nbsp;Due from related parties | 7258 | 20087 | 132594 | 157992 | 89533 | 230361 | 19489 | 125873 | 11679 | 10819 | (312778) | 492907 |
| &nbsp;&nbsp;&nbsp;Prepaid expense and other current assets | 281 | 200 | - | - | - | - | - | - | - | - |  | 481 |
| &nbsp;&nbsp;&nbsp;Total current assets | 56250 | 34394 | 222358 | 181728 | 111487 | 230861 | 39744 | 157986 | 12679 | 11819 | (312778) | 746528 |
| Noncurrent assets |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Note receivable - related party | 158569 | 349863 | 205516 | 371187 | 40867 | 94496 | 36669 | 282035 |  |  |  | 1539202 |
| &nbsp;&nbsp;&nbsp;Home equity investments, at fair value | 1413993 | 2492875 | 1697120 | 2301125 | 192823 | 613326 | 181216 | 750618 |  |  |  | 9643096 |
| &nbsp;&nbsp;&nbsp;Single family rental investment properties, net | 618295 | 385608 | - | 338589 | - | - | - | - | - | - |  | 1342492 |
| Total noncurrent assets | 2190857 | 3228346 | 1902636 | 3010901 | 233690 | 707822 | 217885 | 1032653 | - | - |  | 12524790 |
| Total assets | $2247107 | $3262740 | $2124994 | $3192629 | $345177 | $938683 | $257629 | $1190639 | $12679 | $11819 | $(312778) | $13271318 |
| **<u>LIABILITIES AND MEMBERS' EQUITY</u>** | **<u>LIABILITIES AND MEMBERS' EQUITY</u>** | **<u>LIABILITIES AND MEMBERS' EQUITY</u>** | **<u>LIABILITIES AND MEMBERS' EQUITY</u>** | **<u>LIABILITIES AND MEMBERS' EQUITY</u>** | **<u>LIABILITIES AND MEMBERS' EQUITY</u>** | **<u>LIABILITIES AND MEMBERS' EQUITY</u>** | **<u>LIABILITIES AND MEMBERS' EQUITY</u>** | **<u>LIABILITIES AND MEMBERS' EQUITY</u>** | **<u>LIABILITIES AND MEMBERS' EQUITY</u>** | **<u>LIABILITIES AND MEMBERS' EQUITY</u>** | **<u>LIABILITIES AND MEMBERS' EQUITY</u>** | **<u>LIABILITIES AND MEMBERS' EQUITY</u>** |
| Current liabilities |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $10451 | $3075 | $- | $8294 | $- | $- | $- | $- | $- | $- |  | $21820 |
| &nbsp;&nbsp;&nbsp;Due to related parties | 174210 | 931394 | (2995) | (182680) | 34560 | 94591 | 38855 | (417557) | 36851 | 36951 | (312778) | 431402 |
| &nbsp;&nbsp;&nbsp;Other payable | 3650 | 7867 |  | 2100 |  |  |  |  |  |  |  | 13617 |
| &nbsp;&nbsp;&nbsp;Notes payable, current-term, net of debt issuance costs | 1096 | - | - | - | - | - | - | - | - | - |  | 1096 |
| Total current liabilities | 189407 | 942336 | (2995) | (172286) | 34560 | 94591 | 38855 | (417557) | 36851 | 36951 | (312778) | 467935 |
| &nbsp;&nbsp;&nbsp;Notes payable - related parties | 113500 | 442992 | 428900 | 1060033 |  | 301005 |  | 444696 |  |  |  | 2791126 |
| &nbsp;&nbsp;&nbsp;Notes payable, long-term, net of debt issuance costs | 490200 | 364591 |  | 227238 |  |  |  |  |  |  |  | 1082029 |
| &nbsp;&nbsp;&nbsp;Revolving credit facility - related party | - | 95972 | 614534 | 1108397 | - | 260322 | 140573 | 1119081 | - | - |  | 3338879 |
| Total non-current liabilities | 603700 | 903555 | 1043434 | 2395668 | - | 561327 | 140573 | 1563777 | - | - |  | 7212034 |
| Total liabilities | 793107 | 1845891 | 1040439 | 2223382 | 34560 | 655918 | 179428 | 1146220 | 36851 | 36951 | (312778) | 7679969 |
| Members' equity (deficit) |  |  |  |  |  |  |  |  |  |  |  |  |
| Members' equity (deficit) | 1454000 | 1416849 | 1084555 | 969247 | 310617 | 282765 | 78201 | 44419 | (24172) | (25132) |  | 5591349 |
| &nbsp;&nbsp;&nbsp;Total members' equity (deficit) | 1454000 | 1416849 | 1084555 | 969247 | 310617 | 282765 | 78201 | 44419 | (24172) | (25132) |  | 5591349 |
| Total liabilities and members' equity (deficit) | $2247107 | $3262740 | $2124994 | $3192629 | $345177 | $938683 | $257629 | $1190639 | $12679 | $11819 | $(312778) | $13271318 |

---

CITYFUNDS I, LLC

CONSOLIDATING BALANCE SHEETS

DECEMBER 31, 2023

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | # Austin | # Dallas | # Miami | # Tampa | # Denver | # Houston | # Phoenix | # Los Angeles | # Nashville | # Las Vegas | Consolidated |
| <u>ASSETS</u> | <u>ASSETS</u> | <u>ASSETS</u> | <u>ASSETS</u> | <u>ASSETS</u> | <u>ASSETS</u> | <u>ASSETS</u> | <u>ASSETS</u> | <u>ASSETS</u> | <u>ASSETS</u> | <u>ASSETS</u> | <u>ASSETS</u> |
| Current assets |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $130925 | $122253 | $75445 | $52239 | $140066 | $- | $- | $- | $1000 | $1000 | $522928 |
| &nbsp;&nbsp;&nbsp;Due from related parties | 3023 | 18517 | 2511 | 3392 | 31320 |  | 2200 | 5390 | 300 |  | 66653 |
| &nbsp;&nbsp;&nbsp;Prepaid expense and other current assets | 2469 | 200 | - | - | - | - | - | - | - | - | 2669 |
| &nbsp;&nbsp;&nbsp;Total current assets | 136417 | 140970 | 77956 | 55631 | 171386 | - | 2200 | 5390 | 1300 | 1000 | 592250 |
| Noncurrent assets |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Home equity investments | 1226547 | 1505973 | 954509 | 618550 |  | 40000 |  |  |  |  | 4345579 |
| &nbsp;&nbsp;&nbsp;Single family rental investment properties, net | 643021 | 610491 | 391135 | 352179 | - | - | - | - | - | - | 1996826 |
| Total noncurrent assets | 1869568 | 2116464 | 1345644 | 970729 | - | 40000 | - | - | - | - | 6342405 |
| Total assets | $2005985 | $2257434 | $1423600 | $1026360 | $171386 | $40000 | $2200 | $5390 | $1300 | $1000 | $6934655 |
| <u>LIABILITIES AND MEMBERS' EQUITY</u> | <u>LIABILITIES AND MEMBERS' EQUITY</u> | <u>LIABILITIES AND MEMBERS' EQUITY</u> | <u>LIABILITIES AND MEMBERS' EQUITY</u> | <u>LIABILITIES AND MEMBERS' EQUITY</u> | <u>LIABILITIES AND MEMBERS' EQUITY</u> | <u>LIABILITIES AND MEMBERS' EQUITY</u> | <u>LIABILITIES AND MEMBERS' EQUITY</u> | <u>LIABILITIES AND MEMBERS' EQUITY</u> | <u>LIABILITIES AND MEMBERS' EQUITY</u> | <u>LIABILITIES AND MEMBERS' EQUITY</u> | <u>LIABILITIES AND MEMBERS' EQUITY</u> |
| Current liabilities |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $6012 | $13582 | $6150 | $- | $- | $- | $- | $- | $- | $- | $25744 |
| &nbsp;&nbsp;&nbsp;Due to related parties | 20150 | 361201 | 85805 | 24540 | (1799) | 56752 | 16853 | 16953 | 17853 | 17953 | 616261 |
| &nbsp;&nbsp;&nbsp;Other payable | 3650 | 4650 |  | 2300 |  |  |  |  |  |  | 10600 |
| &nbsp;&nbsp;&nbsp;Notes payable, current-term, net of debt issuance costs | 207175 | 126815 | 295815 | - | - | - | - | - | - | - | 629805 |
| Total current liabilities | 236987 | 506248 | 387770 | 26840 | (1799) | 56752 | 16853 | 16953 | 17853 | 17953 | 1282410 |
| &nbsp;&nbsp;&nbsp;Notes payable, long-term, net of debt issuance costs | 254605 | 409197 | - | 225798 | - | - | - | - | - | - | 889600 |
| Total non-current liabilities | 254605 | 409197 | - | 225798 | - | - | - | - | - | - | 889600 |
| Total liabilities | 491592 | 915445 | 387770 | 252638 | (1799) | 56752 | 16853 | 16953 | 17853 | 17953 | 2172010 |
| Members' equity (deficit) |  |  |  |  |  |  |  |  |  |  |  |
| Members' equity (deficit) | 1514393 | 1341989 | 1035830 | 773722 | 173185 | (16752) | (14653) | (11563) | (16553) | (16953) | 4762645 |
| &nbsp;&nbsp;&nbsp;Total members' equity (deficit) | 1514393 | 1341989 | 1035830 | 773722 | 173185 | (16752) | (14653) | (11563) | (16553) | (16953) | 4762645 |
| Total liabilities and members' equity (deficit) | $2005985 | $2257434 | $1423600 | $1026360 | $171386 | $40000 | $2200 | $5390 | $1300 | $1000 | $6934655 |

---

CITYFUNDS I, LLC

CONSOLIDATING STATEMENTS OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 2024

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | # Austin | # Dallas | # Miami | # Tampa | # Denver | # Houston | # Phoenix | # Los Angeles | # Nashville | # Las Vegas | Consolidated |
| Revenues, net | $43840 | $31460 | $- | $15540 | $- | $- | $- | $- | $- | $- | $90840 |
| Cost of revenues | 35214 | 70291 | 55778 | 118143 | 8350 | 33810 | 8550 | 36341 | - | - | 366477 |
| Gross profit | 8626 | (38831) | (55778) | (102603) | (8350) | (33810) | (8550) | (36341) | - | - | (275637) |
| <u>Operating cost and expenses</u> |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;General and administrative | 77003 | 78498 | 43736 | 60911 | 25322 | 24535 | 19898 | 21261 | 8179 | 8179 | 367522 |
| Total operating expenses | 77003 | 78498 | 43736 | 60911 | 25322 | 24535 | 19898 | 21261 | 8179 | 8179 | 367522 |
| Net loss from operations | (68377) | (117329) | (99514) | (163514) | (33672) | (58345) | (28448) | (57602) | (8179) | (8179) | (643159) |
| <u>Other income (expense)</u> |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Gain on settlement of homeshares equity investments | 9329 | 39315 | 32524 | 28659 |  |  |  |  |  |  | 109827 |
| &nbsp;&nbsp;&nbsp;Gain (Losses) on the sale of single-family rental properties |  | (38782) | 32986 |  |  |  |  |  |  |  | (5796) |
| &nbsp;&nbsp;&nbsp;Interest expense | (70336) | (124124) | (66683) | (144234) |  | (30688) | (10557) | (65336) |  |  | (511958) |
| &nbsp;&nbsp;&nbsp;Unrealized gain (loss) on change in fair value of home equity investments | (104052) | (39370) | (88745) | 26810 | 25823 | 48467 | 10216 | 23793 |  |  | (97058) |
| &nbsp;&nbsp;&nbsp;Interest income | 6799 | 12726 | 8523 | 12241 | 2236 | 3437 | 1334 | 6399 |  |  | 53695 |
| &nbsp;&nbsp;&nbsp;Total other income (expense) | (158260) | (150235) | (81395) | (76524) | 28059 | 21216 | 993 | (35144) | - | - | (451290) |
| Net income (loss) | $(226637) | $(267564) | $(180909) | $(240038) | $(5613) | $(37129) | $(27455) | $(92746) | $(8179) | $(8179) | $(1094449) |
| &nbsp;&nbsp;&nbsp;Weighted average member units outstanding – basic and diluted | 166418 | 143954 | 106684 | 97681 | 30483 | 17915 | 5065 | 11856 | 57 |  | 580113 |
| Net income (loss) per member unit – basic and diluted | $(1.36) | $(1.86) | $(1.70) | $(2.46) | $(0.18) | $(2.07) | $(5.42) | $(7.82) | $(143.49) | $- | $(1.89) |

---

CITYFUNDS I, LLC

CONSOLIDATING STATEMENTS OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 2023

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | # Austin | # Dallas | # Miami | # Tampa | # Denver | # Houston | # Phoenix | # Los<br> Angeles | # Nashville | # Las Vegas | Consolidated |
| Revenues, net | $43860 | $37612 | $31500 | $20879 |  |  |  |  |  |  | $133851 |
| Cost of revenues | 61245 | 77015 | 46428 | 44967 | - | - | - | - | - | - | 229655 |
| Gross profit | (17385) | (39403) | (14928) | (24088) | - | - | - | - | - | - | (95804) |
| <u>Operating cost and expenses</u> |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;General and administrative | 97087 | 67206 | 62789 | 49343 | 19480 | 16752 | 16853 | 16953 | 16853 | 16953 | 380269 |
| Total operating expenses | 97087 | 67206 | 62789 | 49343 | 19480 | 16752 | 16853 | 16953 | 16853 | 16953 | 380269 |
| Net loss from operations | (114472) | (106609) | (77717) | (73431) | (19480) | (16752) | (16853) | (16953) | (16853) | (16953) | (476073) |
| <u>Other income (expense)</u> |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Gain on settlement of homeshares equity investments | 15433 | 16198 | 21180 |  |  |  |  |  |  |  | 52811 |
| &nbsp;&nbsp;&nbsp;Interest expense | (51034) | (57649) | (32599) | (23745) |  |  |  |  |  |  | (165027) |
| &nbsp;&nbsp;&nbsp;Unrealized gain (loss) on change in fair value of home equity investments | 76686 | 274522 | 226967 | 138549 |  |  |  |  |  |  | 716724 |
| &nbsp;&nbsp;&nbsp;Total other income (expense) | 41085 | 233071 | 215548 | 114804 | - | - | - | - | - | - | 604508 |
| &nbsp;&nbsp;&nbsp;Net income (loss) | $(73387) | $126462 | $137831 | $41373 | $(19480) | $(16752) | $(16853) | $(16953) | $(16853) | $(16953) | $128435 |
| Notes payable, current-term, net of debt issuance costs |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Weighted average member units outstanding – basic <br>and diluted | 105227 | 67271 | 60346 | 34508 | 14367 |  | 133 | 523 | 26 |  | 282401 |
| Notes payable, long-term, net of debt issuance costs |  |  |  |  |  |  |  |  |  |  |  |
| Net income (loss) per member unit – basic and diluted | $(0.70) | $1.88 | $2.28 | $1.20 | $(1.36) | $- | $(126.71) | $(32.41) | $(648.19) | $- | $0.45 |

---

ITEM 8. Exhibits

---

| | |
|:---|:---|
| Exhibit number | Description |
| 2.1 | [Certificate of Formation of Cityfunds I, LLC\*](https://www.sec.gov/Archives/edgar/data/1874979/000149315221031670/ex2-1.htm) |
| 2.2 | [Amended and Restated Operating Agreement of Cityfunds I, LLC\*\*\*](https://www.sec.gov/Archives/edgar/data/1874979/000149315222024427/ex2-2.htm) |
| 3.1 | [Form of Series Operating Agreement\*](https://www.sec.gov/Archives/edgar/data/1874979/000149315221031670/ex3-1.htm) |
| 4.1 | [Form of Subscription Agreement\*\*](https://www.sec.gov/Archives/edgar/data/1874979/000149315222020616/ex4-1.htm) |
| 6.1 | [Form of Homeshare Option Agreement\*\*](https://www.sec.gov/Archives/edgar/data/1874979/000149315222020616/ex6-1.htm) |
| 6.2 | [Form of Homeshare Covenant Agreement\*\*](https://www.sec.gov/Archives/edgar/data/1874979/000149315222020616/ex6-2.htm) |
| 6.3 | [Form of Homeshare Memorandum of Covenants and Restrictions\*\*](https://www.sec.gov/Archives/edgar/data/1874979/000149315222020616/ex6-3.htm) |
| 6.4 | [Form of Homeshares Mortgage and Security Agreement\*\*](https://www.sec.gov/Archives/edgar/data/1874979/000149315222020616/ex6-4.htm) |
| 6.5 | [Form of Property Management Agreement\*\*](https://www.sec.gov/Archives/edgar/data/1874979/000149315222020616/ex6-5.htm) |
| 6.6 | [Nada App License Agreement\*\*](https://www.sec.gov/Archives/edgar/data/1874979/000149315222020616/ex6-6.htm) |
| 6.7 | [PPEX ATS Company Agreement by and among North Capital Private Securities Corporation, Cityfunds I, LLC and each of the series set forth therein\*\*](https://www.sec.gov/Archives/edgar/data/1874979/000149315222020616/ex6-7.htm) |
| 6.8 | [Software and Services License Agreement with North Capital Investment Technology, Inc.\*\*](https://www.sec.gov/Archives/edgar/data/1874979/000149315222020616/ex6-8.htm) |
| 6.9 | [Broker Dealer Agreement with Dalmore Group, LLC\*\*](https://www.sec.gov/Archives/edgar/data/1874979/000149315222020616/ex6-9.htm) |

---

\*Previously filed as an exhibit to the Cityfunds I, LLC Regulation A Offering Statement on Form 1-A (Commission File No. 024-11754, available at <u>https://www.sec.gov/Archives/edgar/data/1874979/000149315221031670/partiiandiii.htm).</u>

\*\*Previously filed as an exhibit to the Cityfunds I, LLC Form 1-A/A (Commission File No. 024-11754, available at <u>https://www.sec.gov/Archives/edgar/data/1874979/000149315222020616/partiiandiii.htm).</u>

\*\*\*Previously filed as an exhibit to the Cityfunds I, LLC Form 1-A/A (Commission File No. 024-11754, available at <u>https://www.sec.gov/Archives/edgar/data/1874979/000149315222024427/partiiandiii.htm).</u>

SIGNATURES

Pursuant to the requirements of Regulation A, the issuer has duly caused this Form 1-K to be signed on its behalf by the undersigned, thereunto duly authorized, as of February 3, 2026.

---

| | |
|:---|:---|
| CITYFUNDS I, LLC | CITYFUNDS I, LLC |
| By: | Nada Asset Management LLC, its Manager |
| By: | */s/ John Green* |
| Name: | John Green |
| Title: | Manager |

---

Pursuant to the requirements of Regulation A, this Form 1-K has been signed as of February 3, 2026, by the following persons on behalf of the issuer and in the capacities indicated.

---

| | |
|:---|:---|
| */s/ Tore Steen* | */s/ Tore Steen* |
| Name: | Tore Steen |
| Title: | Principal Executive Officer |
| */s/ John Green* | */s/ John Green* |
| Name: | John Green |
| Title: | Principal Financial Officer |

---

## Form 1-K Filing Summary

### Filer Information

**Issuer CIK:** 0001874979

**Issuer CCC:** XXXXXXXX

**Is filer a shell company?:** No

**Is this filing by a successor company?:** No

### Submission Contact Information

**Is this a LIVE or TEST Filing?:** LIVE

**Period:** 12-31-2024

### Item 1: Issuer Information (Tab 1 Notification)

**Type of Report:** Annual Report

**Fiscal Year End:** 12-31-2024

**Exact Name of Issuer:** Cityfunds I, LLC

**CIK:** 0001874979

**Jurisdiction of Incorporation:** DE

**IRS Number:** 83-3672902

**Address:** 1315 Manufacturing Street, Dallas, TX 75207

**Issuer Phone Number:** 972-445-7320

**Title of each class of securities issued pursuant to Regulation A:** Cityfunds I, LLC Series Austin;

### Item 2: Ongoing Reporting Requirements

**Is the issuer relying on the relief provided by Rule 257(d) for this filing?** Yes