LiquidValue Development Inc. Reports Significant Financial Improvements in Q3 2024

LiquidValue Development Inc. reported significant financial developments in its 10-Q filing for the quarter ending September 30, 2024. Total assets increased to $33.99 million, up from $32.10 million at the end of 2023. Cash reserves also rose, reaching $2.36 million compared to $1.77 million previously. Notably, reimbursement receivables increased from $6.71 million to $8.20 million, and promissory note receivables from related parties grew from $12.70 million to $15.97 million. Total liabilities decreased significantly from $3.20 million to $2.03 million, while total stockholders’ equity rose from $28.90 million to $31.96 million. The accumulated deficit improved from $(4.70 million) to $(1.85 million).

Revenue for the three months ended September 30, 2024, was $3.83 million, a substantial increase from $6,300 in the same period of 2023. However, revenue for the nine months ended September 30, 2024, was $8.89 million, down from $18.20 million in 2023. The increase in quarterly revenue was attributed to property sales from the Lakes at Black Oak project, while the decline in the nine-month revenue was primarily due to fewer property sales.

Operating expenses for the three months ended September 30, 2024, rose to $2.05 million from $374,220 in the same quarter of 2023. For the nine-month period, operating expenses decreased from $12.22 million to $6.80 million. Income from operations for the third quarter was $1.78 million, compared to a loss of $(367,920) in the prior year. Net income for the third quarter was $2.03 million, a turnaround from a net loss of $(279,689) in Q3 2023. However, net income for the nine months decreased from $6.33 million in 2023 to $2.84 million in 2024.

The company also reported the closure of several subsidiaries, including Alset Solar Inc., SeD REIT Inc., and SeD Builder LLC, which did not materially affect financial statements. The Lakes at Black Oak project generated the majority of revenue, with significant sales of lots contributing to cash flow. The gross margin ratio for the Lakes at Black Oak project was approximately 37% for the first nine months of 2024, down from 40% in 2023.

In terms of future funding, Alset Inc. has committed to providing financial support for the next twelve months. The company expects to collect approximately $7.7 million in developer reimbursements for the Lakes at Black Oak project within the next year.