EDGAR 10-K Filing

Company CIK: 1084551
Filing Year: 2025
Filename: 1084551_10-K_2025_0001683168-25-001708.json

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ITEM 1. BUSINESS
ITEM 1. BUSINESS
Overview
Community Redevelopment, Inc. was incorporated in the State of Oklahoma on August 16th, 2010, under the name Crosswind Renewable Energy Corp. At the time of its creation, the Company had been engaged in marketing renewable energy, sales, and marketing of turbines, lighting, and solar energy sources. On July 6th, 2020, the company completed a transaction whereby changing the core business of the Company which is now that of the newly merged business called Community Redevelopment, Inc. Community Redevelopment, Inc. operates as a community-oriented real estate redeveloper targeting economic growth and opportunity zones in secondary and tertiary value-added markets. The Company’s name was formally changed to Community Redevelopment Inc. (CRDV) on June 24th, 2020, as part of the overall transaction and to reflect the new mission of the company.
In Q4 of 2024, the Company changed its core business structure from solely multi-family housing to include different business verticals while changing its corporate place of domicile by incorporating in the State of Colorado. The company Community Redevelopment Inc., will now operate as a business holding company and will target strategic businesses and targeted companies for incremental business growth in targeted verticals, such technical, accounting, small business financing, healthcare and business real estate.
We will build the company’s assets and revenues through targeted mergers, acquisitions and joint-ventures specifically of database technology, small business financial boutique companies, accounting firms, and businesses with manufacturing and real estate properties. We will provide an experienced management team with many years of management and business expertise to provide the highest levels of management support overseeing companies in different corporate verticals. Our vision is to identify, target and acquire companies that will help Community Redevelopment Inc., grow with timely acquisitions of businesses in multiple verticals. This will provide long-term value to investors while staying true to our mission of enhancing critical management of disparate vertical companies.

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ITEM 1A. RISK FACTORS
ITEM 1A. RISK FACTORS
As a smaller reporting company this is not required.

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ITEM 1B. UNRESOLVED STAFF COMMENTS
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.

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ITEM 2. PROPERTIES
ITEM 2. PROPERTIES
We currently maintain our executive offices in Denver, Colorado. This office belongs to the CEO Phillip Sands and there is no charge for use to the Company.

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ITEM 3. LEGAL PROCEEDINGS
ITEM 3. LEGAL PROCEEDINGS
On November 11th, 2024, a judgement in the amount of $289,460.37 was entered by an ex-employee of the Company for the money owed. The Company under the new management is in conversation with the legal counsel to resolve this matter.

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ITEM 4. MINE SAFETY DISCLOSURE
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
PART II

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ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
Market Information
Our common stock trades on the OTC Market Group under the symbol “CRDV”. The OTC Market is a network of security dealers who buy and sell stock. The dealers are connected by a computer network that provides information on current “bids” and “asks,” as well as volume information. The trading of securities on the OTC Pink is often sporadic and investors may have difficulty buying and selling our shares or obtaining market quotations for them, which may have a negative effect on the market price of our common stock.
Shareholders
Our shares of common stock are issued in registered form. The registrar and transfer agent for our shares of common stock is Legacy Stock Transfer, 16801 Addison Rd Ste#247, Addison, TX 75001. On December 31st, 2024, the shareholders' list of our shares of common stock showed 153 registered holders of our shares of common stock and 341,068,840 shares of common stock issued and outstanding.
Securities Authorized for Issuance Under Equity Compensation Plans
None.
Recent Sales of Unregistered Securities
None.

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ITEM 6. SELECTED FINANCIAL DATA
ITEM 6. SELECTED FINANCIAL DATA
We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information required under this item.

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ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Special Note Regarding Forward-Looking Statements
THE FOLLOWING DISCUSSION CONTAINS FORWARD-LOOKING STATEMENTS THAT REFLECT OUR PLANS, ESTIMATES AND BELIEFS. OUR ACTUAL RESULTS COULD DIFFER MATERIALLY FROM THOSE DISCUSSED IN THE FORWARD-LOOKING STATEMENTS. FACTORS THAT COULD CAUSE OR CONTRIBUTE TO SUCH DIFFERENCES INCLUDE THOSE DISCUSSED BELOW AND ELSEWHERE IN THIS ANNUAL REPORT.
FORWARD-LOOKING STATEMENTS
This annual report on Form 10-K contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws and is subject to the safe-harbor created by such Act and laws. Forward-looking statements may include statements regarding our goals, beliefs, strategies, objectives, plans, including product and technology developments, future financial conditions, results or projections or current expectations These forward-looking statements involve known or unknown risks, uncertainties and other factors that may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may,” “should,” “potential,” “continue,” “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates,” and similar expressions. These statements are based on our current beliefs, expectations, and assumptions and are subject to a number of risks and uncertainties. Although we believe that the expectations reflected-in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Our actual results may differ materially from those anticipated in these forward-looking statements. These forward-looking statements are made as of the date of this report, and we assume no obligation to update these forward-looking statements whether as a result of new information, future events, or otherwise, other than as required by law. In light of these assumptions, risks, and uncertainties, the forward-looking events discussed in this report might not occur and actual results and events may vary significantly from those discussed in the forward-looking statements.
Implications of Being an Emerging Growth Company
We are an Emerging Growth Company as defined in Section 2(a)(19) of the Securities Act of 1933, as amended, or the Securities Act. We will continue to be an emerging growth company until: (i) the last day of our fiscal year during which we had total annual gross revenues of at least $1.07 billion; (ii) the last day of our fiscal year following the fifth anniversary of the date of the first sale of our common stock pursuant to an effective registration statement under the Securities Act; (iii) the date on which we have, during the previous 3-year period, issued more than $1.0 billion in non-convertible debt; or (iv) the date on which we are deemed to be a large accelerated filer, as defined in Section 12b-2 of the Securities Exchange Act of 1934, as amended, or the Exchange Act, which means the market value of our common stock that is held by non-affiliates exceeds $700 million as of the prior June 30.
As an emerging growth company, we are exempt from:
· Sections 14A(a) and (b) of the Exchange Act, which require companies to hold stockholder advisory votes on executive compensation and golden parachute compensation.
· The requirement to provide, in any registration statement, periodic report or other reports to be filed with the Securities and Exchange Commission, or the “Commission” or “SEC”, certain modified executive compensation disclosure under Item 402 of Regulation S-K or selected financial data under Item 301 of Regulation S-K for any period before the earliest audited period presented in our initial registration statement.
· Compliance with new or revised accounting standards until those standards are applicable to private companies;
· The requirement under Section 404(b) of the Sarbanes-Oxley Act of 2002, or the Sarbanes-Oxley Act, to provide auditor attestation of our internal controls and procedures; and
· Any Public Company Accounting Oversight Board, or “PCAOB”, rules regarding mandatory audit firm rotation or an expanded auditor report, and any other PCAOB rules subsequently adopted unless the Commission determines the new rules are necessary for protecting the public.
We have elected to use the extended transition period for complying with new or revised accounting standards under Section 102(b)(1) of the Jumpstart Our Business Startups Act.
We are also a smaller reporting company as defined in Rule 12b-2 of the Exchange Act. As a smaller reporting company, we are not required to provide selected financial data pursuant to Item 301 of Regulation S-K, nor are we required to comply with the auditor attestation requirements of Section 404(b) of the Sarbanes-Oxley Act of 2002. We are also permitted to provide certain modified executive compensation disclosure under Item 402 of Regulation S-K.
Company Overview
Community Redevelopment, Inc. was incorporated in the State of Oklahoma on August 16th, 2010, under the name Crosswind Renewable Energy Corp. At the time of its creation, the Company had been engaged in marketing renewable energy, sales, and marketing of turbines, lighting, and solar energy sources. On July 6th, 2020, the company completed a transaction whereby changing the core business of the Company which is now that of the newly merged business called Community Redevelopment, Inc. Community Redevelopment, Inc. operates as a community-oriented real estate redeveloper targeting economic growth and opportunity zones in secondary and tertiary value-added markets. The Company’s name was formally changed to Community Redevelopment Inc. (CRDV) on June 24th, 2020, as part of the overall transaction and to reflect the new mission of the company.
In Q4 of 2024, the Company changed its core business structure from solely multi-family housing to include different business verticals while changing its corporate place of domicile by incorporating in the State of Colorado. The company Community Redevelopment Inc., will now operate as a business holding company and will target strategic businesses and targeted companies for incremental business growth in targeted verticals, such technical, accounting, small business financing, healthcare and business real estate.
We will build the company’s assets and revenues through targeted mergers, acquisitions and joint-ventures specifically of database technology, small business financial boutique companies, accounting firms, and businesses with manufacturing and real estate properties. We will provide an experienced management team with many years of management and business expertise to provide the highest levels of management support overseeing companies in different corporate verticals. Our vision is to identify, target and acquire companies that will help Community Redevelopment Inc., grow with timely acquisitions of businesses in multiple verticals. This will provide long-term value to investors while staying true to our mission of enhancing critical management of disparate vertical companies.
The Company is not a “shell company,” since its filing of its Form 10 with the SEC on March 01, 2025, and has formal operations, emplaced Board, an Audit Committee and actively pursuing several current projects, despite having no cash on hand since the change in control on December 2nd 2024. As of March 1, 2025, the Company had $6,500 in cash. The Company intends to comply with the periodic reporting requirements of the Exchange Act for so long as it is subject to those requirements.
The Company’s current management believes the advantages of being a publicly held corporation will enable it to project further and faster growth during this market downturn. The Company’s principal business objective for the next 12 months and beyond such time will be to achieve long-term growth potential through community-private partnerships within different US jurisdictions.
During the remainder of the fiscal year and beyond such time, we anticipate incurring costs related to the filing of Exchange Act reports, and investigating, analyzing, and consummating further local partnerships. We believe we will be able to meet these costs through the use of funds to be loaned by or invested in us by our stockholders, management or other investors. Our management and stockholders have indicated their intent to advance funds on behalf of the Company as needed in order to accomplish its business plan and comply with its Exchange Act reporting requirements; however, there are no agreements in effect between the Company and our management and stockholders specifically requiring that they provide any funds to the Company. As a result, there are no assurances that such funds will be advanced or that the Company will be able to secure any additional funding as needed.
While the Company has limited assets and no revenues to date, the Company has experienced management in finance, accounting, and business management and consultation has experience in identifying targeted strategic companies in alliance with its core business of finance, software technology, accounting, healthcare and real estate ventures. The Company will consider the following kinds of factors:
(a) Potential for incremental growth indicated by dynamic small-cap companies with a need of proven senior management skills to help increase revenue growth and exit strategy.
(b) Company will be competitive comparatively competitive to other holding companies of similar size and experience.
(c) We will reflect business strength and experience with many years of senior management experience.
(d) capital requirements and anticipated availability of required funds, to be provided by the Company or from operations, through ventures or similar arrangements, sales of securities, or from other sources.
(e) the extent to which the business opportunity can be advanced; and
In applying the foregoing criteria, not one of which will be definitive, management will attempt to analyze all factors and circumstances and make a determination based upon reasonable investigative measures and available data. Potentially available urban renewal opportunities may occur in many different locales, and at various stages of development, all of which will make the task of comparative investigation and analysis of such urban renewal opportunities extremely difficult and complex. Due to the Registrant’s limited capital available for investigation, the Registrant may not discover or adequately evaluate adverse facts about the opportunity to be engaged. In addition, we will be competing against other entities that possess greater financial, technical, and managerial capabilities for identifying and completing new projects.
In evaluating a prospective new project, we will conduct as extensive a due diligence review of potential targets as possible given our dependence upon the ever-changing city, state, and federal funding initiatives for urban redevelopment and our limited financial resources. We expect that our due diligence will encompass, among other things, meetings with the local government officials and inspection of its neighborhoods and infrastructure, as necessary, as well as a review of financial, government statistical data and other information which is made available to us. This due diligence review will be conducted primarily by our management or by unaffiliated third parties we may engage, including but not limited to attorneys, accountants, consultants or other such professionals. The costs associated with hiring third parties as required to complete a new project may be significant and are difficult to determine as such costs may vary depending on a variety of factors, including the locale, amount of time it takes to complete a new project, the location of the project, and the size and complexity of the business of the project. As of the date of this filing, the Company has identified several potential business opportunities.
The time and costs required to select and evaluate a target project and to structure and complete a new project cannot presently be ascertained with any degree of certainty. The amount of time it takes to complete a new project, the location of the project, the size and complexity of the project neighborhood, the scope of city, state, and federal regulations, and whether funds may be raised contemporaneously with the transaction are all factors that determine the costs associated with completing a new project transaction. The time and costs required to complete a new project can be estimated once a new project target has been identified. Any costs incurred with respect to the evaluation of a prospective new project that is not ultimately completed will result in a loss to us.
Basis of Presentation
The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for annual financial statement presentation and in accordance with Form 10-K. Accordingly, they include all of the information and footnotes required in annual financial statements.
Going Concern
Due to the uncertainty of our ability to meet our current operating and capital expenses, the Company did not engage any independent auditors to audit the financials and report on the unaudited financial statements for the year ended December 31, 2023, regarding concerns about our ability to continue as a going concern. Our financial statements contain additional note disclosures describing the circumstances that lead to this disclosure by our current legal counsel.
Our ability to continue as a going concern is dependent upon our ability to generate profitable operations in the future and/or to obtain the necessary financing to meet our obligations and repay our liabilities arising from normal business operations when they become due. The outcome of these matters cannot be predicted with any certainty at this time and raise substantial doubt that we will be able to continue as a going concern. Our unaudited financial statements do not include any adjustments to the amount and classification of assets and liabilities that may be necessary should we be unable to continue as a going concern. There is no assurance that our operations will be profitable. Our continued existence and plans for future growth depend on our ability to obtain the additional capital necessary to operate either through the generation of revenue or the issuance of additional debt or equity.
Our future growth is dependent upon achieving further development projects and execution of development projects, engaging other company related opportunities, management of operating expenses, and the ability of the Company to obtain the necessary financing to fund future obligations, and upon profitable operations.
Stockholders’ Equity
Since its inception on August 16, 2010, the Company has accumulated deficit of $60,097,918 as of twelve months ended December 31, 2024.
The aggregated loss is related to the capital invested in advances real estate membership interest, which has future positive cash flow after completion and stabilization. See note 5.
Corporate losses starting by inception of company as outlined in note 5 were accumulated by previous management prior to new management taken over CRDV in December of 2024.
Authorized Shares
Common Stock
The Company is authorized to issue up to 1,000,000,000 shares of common stock, par value $0.001 par value. Each outstanding share of common stock entitles the holder to one vote per share on all matters submitted to a stockholder vote. All shares of common stock are non-assessable and non-cumulative, with no pre-emptive rights.
Preferred shares
Preferred Class A: 10,000,000 (1:70 / 1 preferred shares = 70 common shares). This will have similar voting rights 1:70. Non-dilutable shares //
Preferred Class B: 1,000,000 (1:300 / 1 preferred shares = 300 common shares). This will not have any voting rights and non-dilutable shares //
Preferred Class C: 10,000,000 (1:30 / 1 preferred shares = 30 common shares).
Commitments and Contingencies
In the fiscal year 2024, the Company did not execute any types of Convertible Promissory Note, Securities Purchase Agreement, and short term loans.
The Company still maintains all types of Convertible Promissory Note, Securities Purchase Agreement, and short term loans from fiscal years 2021, 2022 and 2023.
We will require additional financing to implement our business plan, which may include joint venture projects and debt or equity financings. The nature of this enterprise and constraint of positive cash flow places debt financing beyond the creditworthiness required by most banks or typical investors of corporate debt until such time as economically viable profits and losses can be demonstrated. Therefore, any debt financing of our activities may be costly and result in substantial dilution to our stockholders.
Future financing through equity investments is likely to be dilutive to existing stockholders. Also, the terms of securities we may issue in future capital transactions may be more favorable for our new investors. Newly issued securities may include preferences, superior voting rights, and the issuance of warrants or other derivative securities, which may have additional dilutive effects. Further, we may incur substantial costs in pursuing future capital and financing, including investment banking fees, legal fees, accounting fees, and other costs. We may also be required to recognize non-cash expenses in connection with certain securities we may issue, such as convertible notes and warrants, which will adversely impact our financial condition.
Our ability to obtain needed financing may be impaired by such factors as the capital markets, which could impact the availability or cost of future financings. If the amount of capital we are able to raise from financing activities, together with our revenue from operations, is not sufficient to satisfy our capital needs, even to the extent that we reduce our operations accordingly, we may be required to cease operations.
There is no assurance that we will be able to obtain financing on terms satisfactory to us, or at all. We do not have any arrangements in place for any future financing. If we are unable to secure additional funding, we may cease or suspend operations. We have no plans, arrangements, or contingencies in place in the event that we cease operations.
Results of Operations
For the Twelve Months Ended December 31, 2024
Revenues
The Company has not earned any revenue for the twelve months ended in December 31, 2024.
Operating Expenses
For the twelve months ended December 31, 2024, we had $958,431.
Net Operating loss
For the twelve months ended December 31, 2024, we had $958,431, for the reasons explained above.
Other Income (Expense)
There was no income for the twelve months ended December 31, 2024.
Total Loss
Total loss was $958,431the twelve months ended December 31, 2024. This unrealized loss on investments, which is the dollar value of the common shares to be issued for to Phillip Sands, Michael Zinc, Midfett Parker, Thomas Rand, Laura Fritts, First Funding, SC & H, Doty Scott Enterprise, Practice LLP, Insight Accounting, Leonite Capital, Rent Coetzee, Global One, and M S Madhava Rao.
Liquidity and Capital Resources
Overview
The Company’s cash and cash equivalents balance was $-64.00 as of December 31, 2024.
Net cash provided in the Company’s operating activities during the twelve months ended December 31, 2024, was $-64.00.
Since its inception on August 16, 2010, the Company had a cumulative deficit of $60,097,918 and we have a working capital deficit of $49,900,253.58 as of December 31, 2022. Our future growth is dependent upon achieving further purchase orders and execution, management of operating expenses and the ability of the Company to obtain the necessary financing to fund future obligations, and upon profitable operations.
Historically, we have financed our cash flow and operations from contributions of our majority shareholder and by raising equity and convertible loans.
The new management in the new fiscal year 2025 is committed to reduce or eliminate the cumulative deficit of $60,097,918 and we have a working capital deficit of $49,900,253.58 by converting to a special class of preferred shares
As of December 30, 2024, our cash balance was $-64 we believe we will require a minimum of $10,000,000 in working capital over the next 12 months to grow the company as currently planned, covering our operating costs and maintaining our regulatory reporting and filings. Should our revenues not materialize as expected, or if our costs and expenses prove to be greater than we currently anticipate, or should we change our current business plan in a manner that will increase or accelerate our anticipated costs and expenses; we may need funds in excess of that currently planned.
It is our current policy that all transactions between the Company and our officers, directors and their affiliates will be entered into only if such transactions are approved by a majority of the existing directors, are approved by vote of the stockholders, or are fair to us as a corporation as approved or ratified by our Board of Directors or authorized officer. We will conduct an appropriate review of all related party transactions on an ongoing basis, and, where appropriate, we will review the potential conflicts of interest.
Off-Balance Sheet Arrangements
We currently have no off-balance sheet arrangements that have or are reasonably likely to have a current or future material effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.
Critical Accounting Policies and Estimates
Use of Estimates
In preparing the consolidated financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”), management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the dates of the consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions made by management include, but are not limited to, revenue recognition, the allowance for bad debt, useful life of fixed assets, income taxes and unrecognized tax benefits, valuation allowance for deferred tax assets, and assumptions used in assessing impairment of long-lived assets. Actual results could differ from those estimates.
Lease
The Company has not entered in to any short term or long term leases as of December 31, 2024.
Revenue Recognition
The Company did not recognize any revenue as of December 31, 2024.
Income Taxes
The Company did not file any taxes as of December 31, 2024.
Stock-based Compensation
Stock-based compensation cost to employees is measured at the date of grant, based on the calculated fair value of the stock-based award, and will be recognized as expense over the employee’s requisite service period (generally the vesting period of the award). Share-based compensation awards issued to non-employees for services rendered are recorded at either the fair value of the services rendered or the fair value of the share-based payment, whichever is more readily determinable. The company has no stock-based compensation plan established as December 31, 2024.
The financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of financial statements is not required in those statements.
The disclosures shall include: a. the nature of the relationship(s) involved; b. a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; c. the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and d. amounts due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement.

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ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information required under this item.

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Index:
Audit Report
(1) Financial Statements
Page
Consolidated Balance Sheets
Consolidated Statements of Operations and Comprehensive Loss
Consolidated Statements of Stockholders' Equity (Deficit) for the Years Ended December 31, 2024 and 2023
Consolidated Statements of Cash Flows for the Years Ended December 31, 2024 and 2023
Notes to Consolidated Financial Statements
Community Redevelopment Inc.
Consolidated Balance Sheets
Unaudited
For the year ended
December 31,
Assets
Current Assets:
Cash $ - $ 118,245
Restricted Cash - -
Other Current Assets - -
Total current assets - 118,245
Investments in Real Estate Membership Interests 7,248,577 13,181,675
Total assets $ 7,248,577 $ 13,299,920
Liabilities and shareholders' equity
Current liabilities
Accounts payable $ 453,419 $ 237,549
Accrued expenses 300,000 241,926
Interest Payable 70,000 158,385
Notes Payable 180,000 672,600
Convertible Notes Payable, net of discount 555,556 563,056
Derivatives on Convertible Note 311,070 747,070
Advance from customers - 29,276
Short Term Loan 828,965 879,549
Mortgages on property, current 2,552,209 2,720,750
Total current liabilities 5,251,219 6,250,161
Long Term Liabilities
Mortgage on property 2,605,033 7,834,062
Total Long term liabilities 2,605,033 7,834,062
Total liabilities 7,856,252 14,084,223
Stockholders' Equity
Preferred stock: $0.001 par value, 5,000,000 shares authorized, 0 shares issued and outstanding at December 31, 2024 and 2023 respectively. - -
Common stock: $0.001 par value; 500,000,000 shares authorized; 96,460,876 shares issued and outstanding at December 31, 2024 and 86,038,098 shares issued and outstanding at December 31, 2023 96,460 86,038
Additional paid in capital 59,648,395 59,887,663
Shares Committed to be issued - 40,000
Accumulated deficit (60,352,530 ) (60,798,004 )
Total shareholders' equity (Deficit) (607,675 ) (784,303 )
Total liabilities and Stockholders' Equity (Deficit) $ 7,248,577 $ 13,299,920
See Accompanying Notes to Consolidated Financial Statements.
Community Redevelopment Inc.
Income Statement
Unaudited
For the Fiscal Year Ended
December 31,
Revenue $ - $ 6,950
Cost of Services - (5,950 )
Gross Profit - 1,000
Operating expenses:
General and Administrative 350,000 603,437
Total Operating Expenses 350,000 603,437
Loss from Operations (350,000 ) (602,437 )
Other income (expense):
Interest expense (100,000 ) (115,201 )
Other income - 17,551
Change in the fair value of derivative 195,388 -
Total other income (Expense) (95,388 ) (97,650 )
Net Loss (254,612 ) $ (700,087 )
Net (loss) per share attributable to common stockholders, basic and diluted $ (0.00 ) $ (0.009 )
Weighted average shares outstanding, basic and diluted
76,877,471
See Accompanying Notes to Consolidated Financial Statements.
Community Redevelopment Inc.
Consolidated Statement of Stockholders' Equity (Deficit)
Unaudited
Preferred Stock Common Stock Common Stock
Additional
Total
Shares Amount Shares Amount Shares Committed Amount
Paid-in Capital Accumulated Deficit
Stockholders' Deficit
Balance, December 31, 2021 1,000,000 $ 1,000 44,077,038 $ 44,077 - $ -
$ 66,633,268 $ (49,276,680 )
$ 17,401,665
Shares issued for services - - 11,314,262 11,314 - -
1,211,911 -
1,223,225
Shares issued for conversion of Loan - - 1,420,700 1,421 - -
71,594 -
73,015
Shares issued for membership interest in real estate - - 34,328,321 34,328 - -
2,025,372 -
2,059,701
Shares Cancelled (1,000,000 ) (1,000 ) (17,750,000 ) (17,750 ) - -
(10,293,750 ) -
(10,312,500 )
Shares Committed to issue - - - - 250,000 10,000
- -
10,000
Net Loss - - - - - -
- (10,821,237 )
(10,821,237 )
Balance, December 31, 2022 - $ - 73,390,321 $ 73,390 250,000 $ 10,000
$ 59,648,395 $ (60,097,917 )
$ (366,132 )
Shares issued for conversion of Loan - - 5,097,777 5,098 - -
94,318 -
99,416
Shares issued for services - - 7,550,000 7,550 - -
144,950 -
152,500
Shares committed to be issued - - - - 600,000 30,000
- -
30,000
Net Loss - - - - - -
- (700,087 )
(700,087 )
Balance, December 31, 2023 - $ - 86,038,098 $ 86,038 850,000 $ 40,000
$ 59,887,663 $ (60,798,003 )
$ (784,303 )
Shares issued for services
10,422,778 10,421
(239,268 ) 700,085
431,240
Shares committed to be issued
(850,000 ) (40,000 )
Net Loss
(254,612 )
(254,612 )
Balance, December 31, 2024 - $ - 96,460,876 96,460 - $ -
$ 59,648,395 $ (60,352,530 )
$ (607,675 )
See Accompanying Notes to Consolidated Financial Statements.
Community Redevelopment Inc.
Consolidated Statements of Cash Flows
Unaudited
For the Year Ended
December 31,
Cash flow from Operating Activities
Net loss $ (254,612 ) $ (700,086 )
Adjustments to reconcile net loss to net cash used in operating activities:
Loss from discontinued operations - -
Shares issued for services 217,746 152,500
Shares issued for conversion of loan - -
Shares issued for membership interest in real estate - -
Gain (loss) on derivative liabilities - -
Change In:
Increase (decrease) in Prepaid Expenses 243,013 (74,965 )
Increase in Accounts payable 363,740 147,870
Increase in Interest payable 9,504 105,389
Increase in Advances - 29,276
Increase in Note payable - 25,000
Increase in Accrued expenses 231,398 183,933
Net cash provided (used) in operating activities 101,729 (131,083 )
Cash flow from Investing Activities
Increase in investment in capital work in progress - (350,000 )
Net cash used in investing activities - (350,000 )
Cash flow from Financing Activities
Proceeds from shares committed - 30,000
Proceeds from notes payable - 450,000
Proceeds from loan from shareholders - 17,600
Net cash provided in financing activities - 497,600
Net increase (decrease) in cash and cash equivalents 101,729 16,517
Cash and Cash Equivalents at beginning of period 118,245 101,728
Cash and Cash Equivalents at end of period $ - $ 118,245
Supplemental disclosure of cash flow information:
Cash paid for interest $ 127,638 $ -
Cash paid for taxes $ - $ -
Supplemental disclosure of cash and non-cash financing activities
Share cancelled in the reversal of Investments in Real Estate Membership Interest in exchange of Stock $ 220,000,000 $ -
Shares issued for services $ - $ 152,500
Shares issued to settle notes payable $ 73,015 $ -
Shares issued for conversion of loan $ - $ 50,000
See Accompanying Notes to Consolidated Financial Statements.
Community Redevelopment Inc.
Notes to Consolidated Financial Statements
December 31, 2024
Note 1-Nature of Business
Organization
Community Redevelopment, Inc. was incorporated in the State of Oklahoma on August 16th, 2010, under the name Crosswind Renewable Energy Corp. At the time of its creation, the Company had been engaged in marketing renewable energy, sales, and marketing of turbines, lighting, and solar energy sources. On July 6th, 2020, the company completed a transaction whereby changing the core business of the Company which is now that of the newly merged business called Community Redevelopment, Inc. Community Redevelopment, Inc. operates as a community-oriented real estate redeveloper targeting economic growth and opportunity zones in secondary and tertiary value-added markets. The Company’s name was formally changed to Community Redevelopment Inc. (CRDV) on June 24th, 2020, as part of the overall transaction and to reflect the new mission of the company.
On December 31, 2024, the Company changed its core business structure from solely multi-family housing to include different business verticals while changing its corporate place of domicile by incorporating in the State of Colorado. The company Community Redevelopment Inc., will now operate as a business holding company and will target strategic businesses and targeted companies for incremental business growth in targeted verticals, such technical, accounting, small business financing, healthcare and business real estate.
We will build the company’s assets and revenues through targeted mergers, acquisitions and joint-ventures specifically of database technology, small business financial boutique companies, accounting firms, and businesses with manufacturing and real estate properties. We will provide an experienced management team with many years of management and business expertise to provide the highest levels of management support overseeing companies in different corporate verticals. Our vision is to identify, target and acquire companies that will help Community Redevelopment Inc., grow with timely acquisitions of businesses in multiple verticals. This will provide long-term value to investors while staying true to our mission of enhancing critical management of disparate vertical companies.
Our focus is to acquire existing revenue based companies with experienced management, direction, growth and investment capital for growth of the companies and ultimately the parent company as the holder. This will provide long-term value to investors while staying true to our mission of enhancing communities.
Emerging Growth Company
The Company is an “emerging growth company”, as defined in the Jumpstart Our Business Startups Act of 2012 (“JOBS Act”), and may take advantage of certain exemptions from various reporting requirements that are applicable to other public 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(b) of the Sarbanes-Oxley Act, and exemptions from the requirements of Sections 14A(a) and (b) of the Securities Exchange Act of 1934 to hold a nonbinding advisory vote of stockholders on executive compensation and any golden parachute payments not previously approved.
The Company has elected to use the extended transition period for complying with new or revised accounting standards under Section 102(b)(1) of the JOBS Act. This election allows us to delay the adoption of new or revised accounting standards that have different effective dates for public and private companies until those standards apply to private companies. As a result of this election, our financial statements may not be comparable to companies that comply with public company effective dates.
We will remain an “emerging growth company” for up to five years, although we will lose that status sooner if our revenues exceed $100 million, if we issue more than $100,000 in non-convertible debt in a three-year period, or if the market value of our common stock that is held by non-affiliates exceeds $80 million as of the end of the second quarter of any fiscal year following the anniversary of the initial reporting.
To the extent that we continue to qualify as a “smaller reporting company”, as such term is defined in Rule 12b-2 under the Securities Exchange Act of 1934, after we cease to qualify as an emerging growth company, certain of the exemptions available to us as an emerging growth company may continue to be available to us as a smaller reporting company, including: (1) not being required to comply with the auditor attestation requirements of Section 404(b) of the Sarbanes Oxley Act; (2) scaled executive compensation disclosures; and (3) the requirement to provide only two years of audited financial statements, instead of three years.
Note 2- Going Concern
The accompanying audited 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 has accumulated loss of $700,086 as of December 31, 2024. These conditions raise substantial doubt about the ability of the Company to continue as a going concern.
The ability of the Company to continue as a going concern is dependent upon its abilities to generate revenues, to continue to raise investment capital, and develop and implement its business plan. No assurance can be given that the Company will be successful in these efforts.
Note 3- Significant Accounting Policies
Basis of Presentation
The accompanying audited financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S.
GAAP”) for annual financial statement presentation and in accordance with Form 10-K.
Use of Estimates
In preparing the consolidated financial statements in conformity with U.S. GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the dates of the consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions made by management include, but are not limited to, revenue recognition, the allowance for bad debt, useful life of fixed assets, income taxes and unrecognized tax benefits, valuation allowance for deferred tax assets, and assumptions used in assessing impairment of long-lived assets. Actual results could differ from those estimates.
The COVID-19 pandemic has caused uncertainty and disruption in the global economy and financial markets. As a result, management’s estimates and assumptions may be subject to a higher degree of variability and volatility that may result in material differences from the current period.
Cash and Cash Equivalents
Cash equivalents consist of highly liquid investments with maturities of three months or less when purchased. Cash and cash equivalents are on deposit with financial institutions without any restrictions.
Concentrations of Credit Risk and Off-Balance Sheet Arrangements
Cash is a financial instrument that potentially subjects the Company to concentrations of credit risk. For all periods presented, substantially all of the Company’s cash was deposited in an account at a single financial institution that management believes is creditworthy. The Company is exposed to credit risk in the event of default by these financial institutions for amounts in excess of the Federal Deposit Insurance Corporation insured limits. The Company maintains its cash at a high-quality financial institution and has not incurred any losses to date.
We have no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.
Fair Value of Financial Instruments
The carrying value of cash, accounts receivable, other receivable, note receivable, other current assets, accounts payable, and accrued expenses, if applicable, approximate their fair values based on the short-term maturity of these instruments. The carrying amounts of debt were also estimated to approximate fair value.
The Company utilizes the methods of fair value (“FV”) measurement as described in ASC 820 to value its financial assets and liabilities. As defined in ASC 820, FV is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In order to increase consistency and comparability in FV measurements, ASC 820 establishes a FV hierarchy that prioritizes observable and unobservable inputs used to measure FV into three broad levels, which are described below:
Level 1 - Quoted prices are available in active markets for identical assets or liabilities as of the reported date. The types of assets and liabilities included in Level 1 are highly liquid and actively traded instruments with quoted prices, such as equities listed on the New York Stock Exchange.
Level 2 - Pricing inputs are other than quoted prices in active markets but are either directly or indirectly observable as of the reported date. The types of assets and liabilities in Level 2 are typically either comparable to actively traded securities or contracts or priced with models using highly observable inputs.
Level 3 - Significant inputs to pricing that are unobservable as of the reporting date. The types of assets and liabilities included in Level 3 are those with inputs requiring significant management judgment or estimation, such as complex and subjective models and forecasts used to determine the fair value of financial transmission rights.
Our financial instruments consist of our accounts payable, accrued expenses - related party and loan payable - related party. The carrying amount of our prepaid accounts payable, accrued expenses- related parties and loan payable - related party approximates their fair values because of the short-term maturities of these instruments.
Investments
A non-controlling, unconsolidated ownership interest in an entity may be accounted for using one of: (i) equity method where applicable; (ii) fair value option if elected; (iii) fair value through earnings if fair value is readily determinable, including election of net asset value (“NAV”) practical expedient where applicable; or (iv) for equity investments without readily determinable fair values, the measurement alternative to measuring at cost adjusted for any impairment and observable price changes, as applicable.
Changes in fair value of equity method investments are recorded in realized and unrealized gains (losses) in the condensed combined and consolidated statements of operations.
Derivative liabilities
The Company identified the conversion feature of convertible notes payable as derivatives.
We estimate the fair value of the derivatives using multinomial lattice models that value the derivative liabilities based on a probability-weighted cash flow model using projections of the various potential outcomes. These estimates are based on multiple inputs, including the market price of our stock, interest rates, our stock price volatility and management’s estimates of various potential equity financing transactions. These inputs are subject to significant changes from period to period and to management's judgment; therefore, the estimated fair value of the derivative liabilities will fluctuate from period to period, and the fluctuation may be material.
Fair value of financial instruments
Under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 820, Fair Value Measurements and Disclosures, and ASC 825, Financial Instruments, the FASB establishes a framework for measuring fair value in generally accepted accounting principles and expands disclosures about fair value measurements. This Statement reaffirms that fair value is the relevant measurement attribute. The adoption of this standard did not have a material effect on the Company's consolidated financial statements as reflected herein. The carrying amounts of cash, prepaid expense and other current assets, accounts payable, accrued expenses and notes payable reported on the accompanying consolidated balance sheets are estimated by management to approximate fair value primarily due to the short-term nature of the instruments.
An entity is required to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value using a hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The hierarchy prioritized the inputs into three levels that may be used to measure fair value:
Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.
Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in markets that are not active.
Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.
Our derivative liabilities are measured at fair value on a recurring basis and estimated as follows:
December 31, 2024 Total Level 1 Level 2 Level 3
Derivative liabilities $ 747,070 $ - $ - $ 747,070
Non-controlling Interests
Non-controlling interests represent the share of consolidated entities owned by third parties. Community Redevelopment recognizes each non-controlling ownership at the estimated fair value of the net assets at the date of formation or acquisition.
Related Parties
The Company follows subtopic 850-10 of the FASB ASC for the identification of related parties and disclosure of related party transactions. Pursuant to Section 850-10-20 related parties include:
a. affiliates of the Company;
b. entities for which investments in their equity securities would be required, absent the election of the FV option under the FV Option Subsection of Section 825-10-15, to be accounted for by the equity method by the investing entity;
c. trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management;
d. principal owners of the Company;
e. management of the Company;
f. other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and
g. other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests.
The financial statements shall include disclosures of material-related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of financial statements is not required in those statements.
The disclosures shall include: a. the nature of the relationship(s) involved; b. a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; c. the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and d. amounts due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement.
Revenue Recognition
In May 2014 the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes all existing revenue recognition requirements, including most industry specific guidance. This new standard requires a company to recognize revenues when it transfers goods or services to customers in an amount that reflects the consideration that the company expects to receive for those goods or services. The FASB subsequently issued the following amendments to ASU No. 2014-09 that have the same effective date and transition date: ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations; ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing; ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients; and ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers. The Company adopted these amendments with ASU 2014-09 (collectively, the new revenue standards).
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:
Step 1: Identify the contract(s) with customers
Step 2: Identify the performance obligations in the contract
Step 3: Determine the transaction price
Step 4: Allocate the transaction price to performance obligations
Step 5: Recognize revenue when the entity satisfies a performance obligation
Service revenues are recognized as the services are performed in proportion to the transfer of control to the customer and real estate revenues are recognized at the time of sale when consideration has been exchanged and the title has been conveyed to the buyer. At this time, we have not identified specific planned revenue streams.
Basic Income (Loss) Per Share
Under the provisions of ASC 260, “Earnings per Share,” basic loss per common share is computed by dividing net loss available to common shareholders by the weighted average number of shares of common stock outstanding for the periods presented. Diluted net loss per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that would then share in the income of the Company, subject to anti-dilution limitations.
For the Year Ended
December 31,
Numerator:
Net loss $ (254,612 ) $ (700,086 )
Denominator:
Weighted average common shares outstanding-basic 96,460,876 76,877,471
Dilutive common stock equivalents
Weighted average common shares outstanding-diluted 96,460,876 76,877,471
Net loss per share:
Basic $ (0.009 ) $ (0.009 )
Diluted $ (0.009 ) $ (0.009 )
Realized and Unrealized Gains (Losses)
Realized gains (losses) occur when the Company redeems all or a portion of its investment or when the Company receives cash income, such as dividends or distributions. Unrealized appreciation (depreciation) results from changes in the fair value of the underlying investment as well as from the reversal of previously recognized unrealized appreciation (depreciation) at the time an investment is realized. Realized and unrealized gains (losses) are presented together as realized and unrealized gains (losses) in the condensed combined and consolidated statements of operations.
Income Taxes
The Company accounts for income taxes using the asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. In estimating future tax consequences, the Company generally considers all expected future events other than enactments of changes in the tax law. For deferred tax assets, management evaluates the probability of realizing the future benefits of such assets. The Company establishes valuation allowances for its deferred tax assets when evidence suggests it is unlikely that the assets will be fully realized.
The Company recognizes the tax effects of an uncertain tax position only if it is more likely than not to be sustained based solely on its technical merits as of the reporting date and then only in an amount more likely than not to be sustained upon review by the tax authorities. Income tax positions that previously failed to meet the more likely than not threshold is recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more likely than not threshold is derecognized in the first subsequent financial reporting period in which that threshold is no longer met. The Company classifies potential accrued interest and penalties related to unrecognized tax benefits within the accompanying consolidated statements of operations and comprehensive income (loss) as income tax expense.
Comprehensive Income
Other comprehensive income consists of net income and other appreciation (depreciation) affecting the Company that, under GAAP, are excluded from net income.
New Accounting Pronouncements
In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 requires companies to measure credit losses utilizing a methodology that reflects expected credit losses and requires a consideration of a broader range of reasonable and supportable information to inform credit loss estimates. ASU 2016-13 is effective for fiscal years beginning after December 15, 2022, including those interim periods within those fiscal years. We did not expect the adoption of this guidance have a material impact on its consolidated financial statements.
Note 4 - Authorized Shares
The Company is authorized to issue up to 1,000,000,000 shares of common stock, par value $0.001 per share. Each outstanding share of common stock entitles the holder to one vote per share on all matters submitted to a stockholder vote. All shares of common stock are non-assessable and non-cumulative, with no pre-emptive rights.
Preferred Class A: 10,000,000 (1:70 / 1preferred shares = 70 common shares). This will have similar voting rights 1:70. Non-dilutable shares //
Preferred Class B: 1,000,000 (1:300 / 1preferred shares = 300 common shares). This will not have any voting rights and non-dilutable shares //
Preferred Class C: 10,000,000 (1:30 / 1preferred shares = 30 common shares).
Note 5 - Investments in Real Estate Joint Ventures
In the fiscal year ending December 31, 2024, the Company has not acquired any new investments.
See note 8 under Stock Equity and refer to last paragraph on page related to Real Estate Joint Ventures and Red Hills Capital Advisors, LLC.
We have recorded the 2022 acquisitions as follows:
December 31, 2022
Restricted Cash $ 160,503
Prepaids 6,000
Land 4,514,000
Building 1,611,000
Deferred financing costs, net 278,168
Total acquisition cost 6,569,671
Accrued expenses (8,602 )
Outstanding balance on assumed mortgages (5,598,250 )
Total carrying amounts recorded $ 962,819
The company continues to review and may adjust the purchase price allocations during the one-year window.
Note 6 - Notes Payable
Convertible notes payable, consist of the following at December 31, 2024:
Note payable to an unrelated party, matured April 08, 2022, with interest at 10%, convertible into common shares of the Company $ 277,778 $ 277,778
Note payable to an unrelated party, matured September 20, 2022, with interest at 10%, convertible into common shares of the Company 277,778 277,778
Less discount - -
Total $ 555,556 $ 555,556
On December 31, 2024 the company secured Convertible Promissory Notes for a total amount $$958,431issued to Phillip Sands, Michael Zinc, Midfett Parker, Thomas Rand, Laura Fritts, First Funding, SC & H, Doty Scott Enterprise, Practice LLP, Insight Accounting, Leonite Capital, Rent Coetzee, Global One, and M S Madhava Rao.
Note 7: Short Term Loan
On November 30, 2021, the Company executed a short-term loan of $1,000,000 Secured Note, by 1,500,000 shares of CRDV stock (reserved in bank’s name, subject to loan and stock pledge agreement with NextBank International, Inc, and secured by the then president of the company Mr. Garfield Antonio, as a personal guarantor.
Per the terms of the Agreements with NextBank International, Inc, the Company may borrow up to $1,000,000; which is open with the right of redemption for one year against the collateral of 1,500,000 shares of CRDV stock.
The Private Note has a 7.5% fixed rate that matures on November 30, 2022. As of September 30, 2022, the company has withdrawn the full amount net of the loan less the loan fees.
On September 30, 2022, NextBank International, Inc, has entered into an agreement whereby it will convert the outstanding balance for shares at a strike price of $0.05, not to exceed 4.9% of the then issued and outstanding shares of the Company. As of September 30, 2022, 1,420,700 shares have been committed to be converted in exchange for $71,035 of the outstanding balance and these shares were issued to Next Bank on October 4, 2022.
Note 8: Derivative Financial Instruments
The Company is exposed to certain risks arising from both business operations and economic conditions, including interest rate risk. To mitigate the impact of interest rate, the Company enters into derivative financial instruments. The Company maintains the majority of its overall interest rate exposure on floating rate borrowings to a fixed-rate basis.
Derivative Instruments
The fair value of interest rate swaps is included within Other non-current liabilities in the Consolidated Balance Sheets. The Company does not net derivatives in the Consolidated Balance Sheets.
Note 9 - Commitments & Contingencies
On April 8, 2021, the Company executed a Senior Secured Convertible Promissory Note, Securities Purchase Agreement, and ancillary agreements (collectively, the “Agreements”) with Leonite Capital, LLC Per the terms of the Agreements with Leonite Capital, LLC, the Company may borrow up to $555,556; of which $555,556 was tendered, which is open with right of redemption for one year. Prior to the maturity date of the Note, the Company at its option, has the right to redeem in cash in part or in whole, the amounts outstanding. Should the Fund wish to convert this debt into equity, the conversion price shall be sixty-five percent of the lowest Intraday price during the previous 21 days. Pursuant to the Agreements, the Company has earmarked the net proceeds for immediate cash infusion for normative working capital purposes and capital expenditures. Leonite Capital. has agreed that neither it nor any of its affiliates shall engage in any short-selling or hedging of our Common Stock during any time. The foregoing is a summary description of certain terms of the Agreements. For a full description of all terms, please refer to the 8k filed with the SEC and accompanying exhibits thereto. As of September 13, 2022, the Company has been deemed to be in default of said Note, and the parties are actively negotiating a work-out. On March 24, 2023, the Company and Leonite Capital LLC executed an Amendment by which the outstanding balance was increased by $7,500.00, the fixed Conversion Price was reset to $0.03.
On December 31, 2024 the company secured Convertible Promissory Notes for a total amount $1,453,418.58 issued to Phillip Sands, Michael Zinc, Midfett Parker, Thomas Rand, Laura Fritts, First Funding, SC & H, Doty Scott Enterprise, Practice LLP, Insight Accounting, Leonite Capital, Rent Coetzee, Global One, and M S Madhava Rao
We will require additional financing to implement our business plan, which may include joint venture projects and debt or equity financings. The nature of this enterprise and constraint of positive cash flow places debt financing beyond the credit-worthiness required by most banks or typical investors of corporate debt until such time as an economically viable profits and losses can be demonstrated. Therefore, any debt financing of our activities may be costly and result in substantial dilution to our stockholders.
Future financing through equity investments is likely to be dilutive to existing stockholders. Also, the terms of securities we may issue in future capital transactions may be more favorable for our new investors. Newly issued securities may include preferences, superior voting rights, and the issuance of warrants or other derivative securities, which may have additional dilutive effects. Further, we may incur substantial costs in pursuing future capital and financing, including investment banking fees, legal fees, accounting fees, and other costs. We may also be required to recognize non-cash expenses in connection with certain securities we may issue, such as convertible notes and warrants, which will adversely impact our financial condition.
Our ability to obtain needed financing may be impaired by such factors as the capital markets, which could impact the availability or cost of future financings. If the amount of capital we are able to raise from financing activities, together with our revenue from operations, is not sufficient to satisfy our capital needs, even to the extent that we reduce our operations accordingly, we may be required to cease operations.
There is no assurance that we will be able to obtain financing on terms satisfactory to us, or at all. We do not have any arrangements in place for any future financing. If we are unable to secure additional funding, we may cease or suspend operations. We have no plans, arrangements or contingencies in place in the event that we cease operations.
The Company’s guarantees primarily relate to requirements under certain financial obligations and some contracts and have arisen through the normal course of business. These guarantees, with certain financial institutions, have both open and closed-ended terms; with remaining closed-ended terms up to 1.0 years and maximum potential future payments of approximately $1 million in the aggregate.
Note 10 - Related Party
Mr. Garfield Antonio is the owner of Red Hills Capital Advisors LLC, a party to the September 20, 2021, merger agreement, which was Rescinded on June 28, 2022.
The company’s short-term loan with NextBank International of $1,000,000 listed on Note 7 is secured by the then CEO of the company, Mr. Garfield Antonio as a personal guarantor and the company has borrowed the full amount.
Mr. Richard Balles Director of the company is also holding a position as the Vice President in NextBank International.
Note 11 - Subsequent Events
On December 6th, 2024, the Company issued $958,431worth of promissory notes to the following individuals and business: Phillip Sands, Michael Zinc, Midfett Parker, Thomas Rand, Laura Fritts, First Funding, SC & H, Doty Scott Enterprise, Practice LLP, Insight Accounting, Leonite Capital, Rent Coetzee, Global One, and M S Madhava Rao
On December 2nd, 2024, the Company appointed Phil Sands as the interim CEO by the Board of Directors and Former CEO Richard Balles.
On December 2nd, 2024, the company announced the resignation of Richard Balles as CEO and Board of Directors.
The Company has evaluated subsequent events through December 31, 2024, the date on which these financial statements were issued.

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ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
None.

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ITEM 9A. CONTROLS AND PROCEDURES
ITEM 9A. CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
Disclosure controls are procedures that are designed with the objective of ensuring that information required to be disclosed in our reports filed under the Exchange Act, such as this annual report, is recorded, processed, summarized, and reported within the time period specified in the SEC’s rules and forms. Disclosure controls are also designed with the objective of ensuring that such information is accumulated and communicated to our management, including the chief executive officer and chief financial officer, as appropriate to allow timely decisions regarding required disclosure. Our management evaluated, with the participation of our current chief executive officer and chief financial officer (our “Certifying Officers”), the effectiveness of our disclosure controls and procedures as of December 31, 2022, pursuant to Rule 13a-15(b) under the Exchange Act. Based upon that evaluation, our Certifying Officers concluded that, as of December 31, 2022, our disclosure controls and procedures were not effective. The ineffectiveness of our disclosure controls and procedures was due to the existence of material weaknesses identified below.
We do not expect that our disclosure controls and procedures will prevent all errors and all instances of fraud. Disclosure controls and procedures, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the disclosure controls and procedures are met. Further, the design of disclosure controls and procedures must reflect the fact that there are resource constraints, and the benefits must be considered relative to their costs. Because of the inherent limitations in all disclosure controls and procedures, no evaluation of disclosure controls and procedures can provide absolute assurance that we have detected all our control deficiencies and instances of fraud, if any. The design of disclosure controls and procedures also is based partly on certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.
Management’s Report on Internal Control Over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as defined under Exchange Act Rules 13a-15(f) and 14d-14(f). Our internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.
All internal control systems, no matter how well designed, have inherent limitations and may not prevent or detect misstatements. Therefore, even those systems determined to be effective can only provide reasonable assurance with respect to financial reporting reliability and financial statement preparation and presentation. In addition, projections of any evaluation of effectiveness to future periods are subject to risk that controls become inadequate because of changes in conditions and that the degree of compliance with the policies or procedures may deteriorate.
Management assessed the effectiveness of the Company’s internal control over financial reporting as of December 31, 2022. In making the assessment, management used the criteria issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO - 2013) in Internal Control-Integrated Framework. Based on its assessment, management concluded that, as of December 31, 2024, our Company’s internal control over financial reporting was not effective.
Changes in Internal Control over Financial Reporting
There were no changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) during the most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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ITEM 9B. OTHER INFORMATION
ITEM 9B. OTHER INFORMATION
During the quarter ended December 31, 2024, no director or officer adopted or terminated any Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement, as each term is defined in Item 408(a) of Regulation S-K.
PART III

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ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
Officers and Directors
Name Age Position
Phillip Sands Director, President, CEO (Assigned December 2nd, 2024)
Richard Balles Director, President, CEO (Resigned December 2nd , 2024)
Robert Fiallo Director (Resigned June 13th, 2024)
Lara Fritts Director (resigned February 13th, 2023)
Michael Zink Director (resigned February 13th, 2023)
(b) Significant Employees.
If we lose the services of our key executive officers, our business would likely be materially and adversely affected. At this time, we do not currently have “key man” life insurance for any of our executive officers.
(c) Family Relationships.
None.
(d) Involvement in Certain Legal Proceedings.
There have been no events under any bankruptcy act, no criminal proceedings and no judgments, injunctions, orders or decrees material to the evaluation of the ability and integrity of any director, executive officer, promoter or control person of the Registrant during the past ten years.
Number and Terms of Office of Officers and Directors
Each member of our Board of Directors serves for a term ending on the date of the annual meeting of stockholders following the annual meeting of the stockholders at which such director was elected. Notwithstanding the foregoing, each director shall serve until his or her successor is elected and qualified or until his or her death, resignation or removal. Our officers are appointed by our Board to a term of one year and serve until their successors are duly appointed and qualified, or until the officer is removed from office.
Committees of the Board of Directors
We do not have a standing nominating, audit or compensation committee. Rather, our full Board of Directors performs the functions of these committees. While the company is reviewing several qualified people for such committees, none have been formed yet. Additionally, because our common stock is not listed for trading or quotation on a national securities exchange, we are not required to have such committees.
Director Nominations
Our full Board of Directors recommends candidates for nomination for election at the annual meeting of the stockholders. We have not formally established any specific, minimum qualifications that must be met or skills that are necessary for directors to possess. In general, in identifying and evaluating nominees for director, the Board of Directors considers educational background, diversity of professional experience, knowledge of our business, integrity, professional reputation, independence, wisdom, and the ability to represent the best interests of our stockholders.
Code of Ethics
We have not yet adopted a code of ethics that applies to all of our employees, officers and directors, including those officers responsible for financial reporting. We expect that we will adopt a code of ethics in the near future.
Indemnification
Under our Articles of Incorporation and Bylaws of the corporation, we may indemnify an officer or director who is made a party to any proceeding, including a law suit, because of his position, if he acted in good faith and in a manner, he reasonably believed to be in our best interest. We may advance expenses incurred in defending a proceeding. To the extent that the officer or director is successful on the merits in a proceeding as to which he is to be indemnified, we must indemnify him against all expenses incurred, including attorney's fees. With respect to a derivative action, indemnity may be made only for expenses actually and reasonably incurred in defending the proceeding, and if the officer or director is judged liable, only by a court order. The indemnification is intended to be to the fullest extent permitted by the laws of the State of Oklahoma.
Regarding indemnification for liabilities arising under the Securities Act of 1933, which may be permitted to directors or officers under Oklahoma law, we have been advised that, in the opinion of the Securities and Exchange Commission, indemnification is against public policy, as expressed in the Act and is, therefore, unenforceable.
Family Relationships
None.
Involvement in Certain Legal Proceedings
No executive officer, member of the Board of Directors or control person of our Company has been involved in any legal proceeding listed in Item 401(f) of Regulation S-K in the past 10 years.

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ITEM 11. EXECUTIVE COMPENSATION
ITEM 11. EXECUTIVE COMPENSATION
In order to attract, retain and motivate executive talent necessary to support the Company’s long-term business strategy, in the future, we may award our executives and any future executives with long-term, stock award, at the sole discretion of our Board.
We believe that the primary goal of executive compensation is to align the interests of our executive officers with those of our shareholders in a way that allows us to attract and retain the best executive talent. Additionally, in order to ensure our executive officers are compensated within the current industry ranges for their respective duties.
The compensation incentives designed to further these goals take the form of annual cash compensation and equity awards, as well as long-term cash and/or equity incentives measured by Company and/or individual performance targets to be established by our Compensation Committee. In addition, our Compensation Committee may determine to make equity-based awards to new executive officers in order to attract talented professionals to serve us.

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ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
The following table sets forth information regarding the beneficial ownership of our common stock as of December 31st, 2022:
· each person known by us to be the beneficial owner of more than 5% of our outstanding shares of common stock;
· each of our executive officers and directors that beneficially owns shares of our common stock; and
· all our executive officers and directors as a group.

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ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
None.

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ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES
ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES
Audit Fees. Not applicable as this is a non-audited financial statement.
Audit-Related Fees. There was no Audit-related services.
Tax Fees. There was no tax filed therefore there is no Tax fees.
All Other Fees. There was no other fees.
PART IV

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ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES
ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
(a) The following documents are filed as part of this annual report:
(1) Financial Statements
Page
Consolidated Balance Sheets
Consolidated Statements of Operations and Comprehensive Loss
Consolidated Statements of Stockholders' Deficit
Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements
(2) Financial Statements Schedules
All financial statements schedules are omitted because they are not applicable or the amounts are immaterial and not required, or the required information is presented in the financial statements and notes thereto beginning on page of this annual report.
(3) Exhibits
We hereby file as part of this annual report the exhibits listed in the attached Exhibit Index. Exhibits which are incorporated herein by reference can be inspected and copied at the public reference facilities maintained by the SEC, 100 F Street, N.E., Room 1580, Washington, D.C. 20549. Copies of such material can also be obtained from the Public Reference Section of the SEC, 100 F Street, N.E., Washington, D.C. 20549, at prescribed rates or on the SEC website at www.sec.gov.
31.1* Certification by the Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2* Certification by the Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1** Certification by the Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2** Certification by the Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
* Filed herewith.
** Furnished herewith.
+ Management contract, compensation plan or arrangement.