INTL LAND Overview of Our Company
The Company was incorporated pursuant to the laws of the
Overview
The real estate market in the
The Company's current portfolio includes residential, resort and commercial properties comprising the following projects:
? Oasis Park Resort is a 497-acres master planned real estate community
including 1,344 residential home sites, south of San Felipe, Baja
California that offers180-degree sea and mountain views. In addition to
the residential lots, there is a planned boutique hotel, a spacious
commercial center, and a nautical center. The Company recently allowed
prospective homeowners and existing lot holders to tour the property
again, which resulted in multiple sales closings and commitments for new
home construction. 75 of the 1,344 planned residential lots were pre-sold
to initial stakeholders. The Company has made significant progress on the
project, which included the completion of the two-mile access road and the
community entrance structure. The Company also started construction of the
waterfront clubhouse, and model homes. The Company has not sold any home
sites during the three months ended March 31, 2022 , has not received any
additional payments for its new home construction.
? Valle Divino is a self-contained solar 650-home site project in Ensenada,
Baja California , with test vineyard at the property. This resort includes
137 residential lots and 3 commercial lots on 20 acres of land. This
represents an estimated $60 million in gross sales opportunity. There has
been no additional sale of residential lots during the three months ended
March 31, 2022 .
? Plaza Bajamar Resort is an 80-unit project located at the internationally
renowned Bajamar Ocean front hotel and golf resort. The Bajamar oceanfront
golf resort is a master planned golf community located 45 minutes south of
the San Diego -Tijuana border along the scenic toll road to Ensenada . The
first Phase will include 22 "Merlot" 1,150 square-foot single-family homes
that features two bedrooms and two baths. The home includes two primary
bedroom suites - one on the first floor and one upstairs, as well as
fairway and ocean views from a rooftop terrace. The Merlot villas will
come with the installation of solar packages.
? Emerald Grove Estates is the Company's newly renovated Southern California
property, used for organized events at this 8,000 square foot event venue.
Equity-method investment:
? Rancho Costa Verde ("RCVD") is a 1,100-acre master planned second home,
retirement home and vacation home real estate community located on the
east coast of Baja California . RCV is a self-sustained solar powered green
community that takes advantage of the advances in solar and other green
technology. In May 2021 , the Company acquired a 25% investment in RCV in
exchange for $100,000 and 3,000,000 shares of the Company's common stock,
and such investment was recorded as an equity-method investment in the
Company's condensed consolidated financial statements.
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As of March 31, 2022 :
? The Company executed residential plot sales agreements for its Valle Divino
project and accepted several reservations for home sales to purchase twenty
percent (20%) inventory for phase I project at its Plaza Bajamar . To avoid
paying multiple title transfer fees and the extended time for each recording,
the seller for both parcels, Valdeland, S.A. de C.V. , an entity controlled by
the Company's Chief Executive Officer, is in the process of creating a master
bank trust. This will provide the Company through its Mexican's subsidiary,
International Land Alliance, S.A. de C.V. , the rights, and interest to each
property, including buildings and improvements. As demonstrated from the
Company's Oasis Park Resort , this will also potentially allow the Company to
record revenue from its Valle Divino and Plaza Bajamar projects, as sales are
made, and individual trusts are established for each buyer, pending further
review of Mexican trust law. The Company expects to have this trust
established by the end of second fiscal quarter of 2022. As of March 31, 2022 ,
the Company received approximately $102,164 from plot sales, which are
currently reported as contract liability in the Company's consolidated balance
sheet until individual trusts are established and title transferred to the
buyer. The Company broke ground on the Valle Divino development in July 2020
and completed its first stage of construction in January 2021 and started
reservations of residential lots. The Company has a dedicated partner for
solar-plus-storage power solutions at its properties, CleanSpark, Inc., which
serves as the Company's exclusive partner for the installation of solar
solutions across its portfolio, including the model homes at Plaza Bajamar .
The Company commenced construction of a model home, and a clubhouse for wine
tasting.
? The Company partnered with Clean Spark, Inc. to successfully deploy a
microgrid on the Company's model home at Plaza Bajamar , and established plan
to outfit all units at the property, as well all units at Valle Divino with
solar micro grid installations.
? Resumed construction and service work at Oasis Park Resort for Phase I of the
project.
? Reopened the Company's newly renovated event center at its Emerald Grove
Estates property in Southern California . The Company entered into a contract
to sell a vacant 20-acre parcel of the property for approximately $630,000 .
The property includes the main parcel of land with existing structures along
with three additional parcels of land which are vacant plots.
? Continued our research and marketing efforts to identify potential home buyers
in the United States , Canada , Europe , and Asia . Through the formation of a
partnership with a similar development company in the Baja California Norte
Region of Mexico , we have been able to leverage additional resources with the
use of their established and proven marketing plan which can help us with
sophisticated execution and the desired results for residential plot sales and
development.
? Title of Oasis Park Resort in San Felipe was assumed during 2019. As progress
continues on the development of the Oasis Park Resort , we are expecting the
transfer of title on the Villas del Enologo in Rancho Tecate , Valle Divino in
Ensenada, Baja California and Plaza Bajamar in Ensenada, Baja California
during the Company third fiscal quarter of 2022, as we continue to follow the
necessary steps to complete this legal process.
? Continued efforts to secure financing and strengthen balance by closing a $0.6
million debt financing with accredited institutional investors to continue the
funding of our projects and operating costs.
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Results of Operations for the Three Months Ended
For the three months ended
March 31, March 31,
2022 2021
Revenues, net $ - $ -
Cost of revenues - -
Gross profit - -
Operating expenses
Sales and marketing 30,278 16,900
General and administrative expenses 1,333,946 770,847
Total operating expenses 1,364,224 787,747
Loss from operations (1,364,224 ) (787,747 )
Other income (expense)
Other expense - (10,876 )
Loss from equity-method investment (41,104 ) -
Interest income 16,973 9,219
Interest expense (104,367 ) (201,079 )
Total other expense (128,498 ) (202,736 )
Net loss $ (1,492,722 ) $ (990,483 )
Operating Expenses
Operating expenses increased by
Sales and marketing costs increased by approximately
General and administrative costs increased by approximately
Other income (expense)
Other expense decreased by approximately
27 Net Loss
The Company finished the three months ended
The factors that will most significantly affect future operating results will
be:
? The acquisition of land with plots for sale;
? The sale price of future plots, compared to the sale price of plots in
other resorts in Mexico ;
? The cost to construct a home on the plots to be transferred, and the
quality of construction;
? The quality of our amenities;
? The global economy and the demand for vacation homes; and
? The on-going effects of COVID-19 on the US and global economy and
specifically in our target market.
Other than the foregoing we do not know of any trends, events or uncertainties that have had, or are reasonably expected to have, a material impact on our revenues or expenses.
Capital Resources and Liquidity
Cash was
We anticipate generating revenues over the next twelve months, as we continue to
market the sale of plots held for sale at our
If the Company is not successful with its marketing efforts to increase sales, the Company will continue to experience a shortfall in cash, and it will be necessary to obtain funds through equity or debt financing in sufficient amounts or to further reduce its operating expenses in a manner to avoid the need to curtail its future operations.
Operating Activities
Net cash flows used in operating activities for the three months ended
Net cash flows used in operating activities for the three months ended
Investing Activities
Net cash flows used in investing activities was
Net cash flows used in investing activities was
28 Financing Activities
Net cash flows provided by financing activities for the three months ended
Net cash flows provided by financing activities for the three months ended
As a result of these activities, we experienced an increase in cash and cash
equivalents of
Our ability to continue as a going concern is dependent on our success in obtaining additional financing from investors or from sale of our common shares.
Critical Accounting Polices
There have been no material changes to our critical accounting policies as
compared to the critical accounting policies and significant judgments and
estimates disclosed in our Annual Report on Form 10-K for the year ended
Off-balance Sheet Arrangements
During the period ended
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