First Hartford : FY 2022 Audited Financial Statements

FIRST HARTFORD CORPORATION AND SUBSIDIARIES

FINANCIAL STATEMENTS AND

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

YEARS ENDED APRIL 30, 2022 AND 2021

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FIRST HARTFORD CORPORATION AND SUBSIDIARIES

FINANCIAL STATEMENTS AND

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

YEARS ENDED APRIL 30, 2022 AND 2021

CONTENTS
Report of Independent Registered Public Accounting Firm	3
Financial Statements:
Consolidated Balance Sheets - April 30, 2022 and 2021	4-5
Consolidated Statements of Operations for the Years
Ended April 30, 2022 and 2021	6
Consolidated Statements of Comprehensive Income for the Years
Ended April, 30, 2022 and 2021	7
Consolidated Statements of Changes in Shareholders' Equity (Deficiency)
for the Years Ended April 30, 2022 and 2021	8
Consolidated Statements of Cash Flows for the Years
Ended April 30, 2022 and 2021	9-10
Notes to Consolidated Financial Statements	11-41

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Report of Independent Registered Public Accounting Firm

Board of Directors and Shareholders

First Hartford Corporation

Manchester, Connecticut

Opinion on the Consolidated Financial Statements

We have audited the accompanying consolidated balance sheets of First Hartford Corporation (the "Company") as of April 30, 2022 and 2021, the related consolidated statements of operations, comprehensive income, changes in shareholders' equity (deficiency), and cash flows for each of the two years in the period ended April 30, 2022, and the related notes (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at April 30, 2022 and 2021, and the results of its operations and its cash flows for each of the two years in the period ended April 30, 2022, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB and in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter(s)

Critical audit matters are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. We determined that there are no critical audit matters.

/s/ Mahoney Sabol & Company, LLP

We have served as the Company's auditor since 2013.

Glastonbury, Connecticut

August 12, 2022

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FIRST HARTFORD CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

APRIL 30, 2022 AND 2021

ASSETS
	2022	2021
Real estate and equipment:
Developed properties and property under construction (including $81,919,164
in 2022 and $82,286,187 in 2021 for VIEs)	$281,348,100	$282,477,209
Equipment and leasehold improvements (including $2,964,510 in 2022 and
$2,874,614 in 2021 for VIEs)	4,996,308	8,060,008
	286,344,408	290,537,217
Less accumulated depreciation and amortization (including $27,154,370 in 2022
and $24,845,237 in 2021 for VIEs)	(72,379,282)	(69,669,929)
	213,965,126	220,867,288
Properties held for sale	9,474,267	-0-
Cash and cash equivalents (including $2,378,663 in 2022 and $2,985,780 in 2021
for VIEs)	18,213,183	11,963,381
Cash and cash equivalents - restricted (including $381,129 in 2022 and $371,786 in
2021 for VIEs)	1,047,180	1,283,312
Marketable securities (including $456,257 in 2022 and $587,273 in 2021 for VIEs)	456,257	587,273
Accounts and notes receivable, net (including $219,394 in 2022 and $123,050 in
2021 for VIEs)	3,635,283	5,454,749
Other receivables	588,411	879,251
Deposits and escrow accounts (including $4,061,002 in 2022 and $4,418,916 in
2021 for VIEs)	8,696,072	8,967,918
Prepaid expenses (including $1,298,530 in 2022 and $413,520 in 2021 for VIEs)	2,453,267	1,561,689
Deferred expenses, net (including $82,969 in 2022 and $104,200 in 2021 for VIEs)	3,031,689	3,039,308
Investment in affiliates	1,582,748	200
Due from related parties and affiliates	767,249	6,777
Total assets	$263,910,732	$254,611,146

See accompanying notes.

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FIRST HARTFORD CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

APRIL 30, 2022 AND 2021

(continued)

LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIENCY)

	2022	2021
Liabilities:
Mortgages and other notes payable:
Construction loans payable	$45,733,154	$33,204,751
Mortgages payable (including $60,150,722 in 2022 and $61,074,746 in
2021 for VIEs)	177,988,826	186,747,674
Notes payable (including $1,704,697 in 2022 and $1,704,697 in 2021 for
VIEs)	1,704,697	3,483,042
Lines of credit	1,250,000	7,610,533
Less: Deferred debt issuance costs (including $1,338,016 in 2022 and
$1,385,222 in 2021 for VIEs)	(2,322,932)	(2,346,485)
	224,353,745	228,699,515
Accounts payable (including $805,494 in 2022 and $689,557 in 2021 for VIEs)	8,193,794	6,003,220
Other payables	2,087,426	2,654,876
Accrued liabilities (including $4,328,484 in 2022 and $4,085,082 in 2021 for
VIEs)	8,982,231	10,161,695
Derivative liability	670,581	3,871,369
Deferred income (including $194,735 in 2022 and $201,375 in 2021 for VIEs)	625,067	964,491
Other liabilities	-0-	615,642
Due to related parties and affiliates (including $-0- in 2022 and $522,160 in 2021
for VIEs)	1,319,423	1,009,236
Deferred tax liability	4,735,269	2,122,580
Total liabilities	250,967,536	256,102,624
Commitments and Contingencies
Shareholders' Equity (Deficiency):
First Hartford Corporation
Preferred stock, $1 par value; $.50 cumulative and convertible;
authorized 4,000,000 shares; no shares outstanding	-0-	-0-
Common stock, $1 par value; authorized 6,000,000 shares:
issued 3,175,908 in 2022 and 2021, outstanding 2,278,664
in 2022 and 2021	3,175,908	3,175,908
Capital in excess of par	4,974,876	4,974,876
Accumulated earnings (deficit)	14,128,144	(945,742)
Treasury stock, at cost, 897,244 shares in 2022 and 2021	(4,994,594)	(4,994,594)
Total First Hartford Corporation	17,284,334	2,210,448
Noncontrolling interests	(4,341,138)	(3,701,926)
Total shareholders' equity (deficiency)	12,943,196	(1,491,478)
Total liabilities and shareholders' equity (deficiency)	$263,910,732	$254,611,146
See accompanying notes.

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