DREAM HOMES & DEVELOPMENT CORPORATION Forward-Looking Statements
Management's Discussion and Analysis or Plan of Operation contains
"forward-looking" statements, as well as historical information. Although we
believe that the expectations reflected in these forward-looking statements are
reasonable, we can give no assurance that the expectations reflected in these
forward-looking statements will prove to be correct. Forward-looking statements
include those that use forward-looking terminology, such as the words
"anticipate," "believe," "estimate," "expect," "intend," "may," "project,"
"plan," "will," "shall," "should," and similar expressions, including when used
in the negative. Although we believe the expectations reflected in these
forward-looking statements are reasonable and achievable, these statements
involve risks and uncertainties, and no assurance can be given that actual
results will be consistent with these forward-looking statements. Current
shareholders and prospective investors are cautioned that any forward-looking
statements are not guarantees of future performance. Such forward-looking
statements by their nature involve substantial risks and uncertainties, certain
of which are beyond our control, and actual results for future periods could
differ materially from those discussed in this report, depending on a variety of
important factors, among which are our ability to implement our business
strategy, our ability to compete with major established companies, the
acceptance of our products in our target markets, our ability to attract and
retain qualified personnel, our ability to obtain financing, our ability to
continue as a going concern, and other risks described from time to time in our
filings with the
We undertake no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Important factors on which such statements are based are assumptions concerning uncertainties, including but not limited to uncertainties associated with the following:
(a) potential fluctuation in quarterly results;
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(b) our failure to earn revenues or profits;
(c) inadequate capital and barriers to raising the additional capital or to obtaining the financing needed to implement our business plans;
(d) inadequate capital to continue business;
(e) changes in demand for our products and services;
(f) rapid and significant changes in markets;
(g) litigation with or legal claims and allegations by outside parties;
(h) insufficient revenues to cover operating costs.
You should read the following discussion and analysis in conjunction with our financial statements and notes thereto, included herewith. This discussion should not be construed to imply that the results discussed herein will necessarily continue into the future, or that any conclusion reached herein will necessarily be indicative of actual operating results in the future. Such discussion represents only the best present assessment of management.
PLAN OF OPERATION
Building on a history of over 1,500 new homes built and over 400
elevation/renovation/addition projects since 1993, the management of
Management recognized that the effects of Super Storm Sandy, which occurred on
10/29/12, would be far reaching and cause an almost unlimited demand for
construction services, as well as specific construction information. Due to the
damage caused by the storm, as well as the material changes in the
In addition to the above projects, which are in process, the Company has also
estimated an additional
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In addition to the projects which the Company currently has under contract for
elevation, renovation, new construction and development, there are a number of
parcels of land which the Company has the ability to secure, whether through
land contract or other types of options. These parcels represent additional
opportunities for development and construction potential on the order of an
additional 400 - 800 lots and/or residential units to be developed and built
within an approximate time horizon of 5 years. Conceivably, this volume of
production could yield
On
The Company also leased the physical premises, including office, showroom, garage and yard space.
The Company opened an office in
With this latest acquisition of Premier Modular and the Company's main office
location in
Properties currently under contract to purchase and in the development stage
A contract was signed in October of 2019 to acquire 70 townhouse lots in
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The Company has received preliminary CAFRA approval for the 68-unit townhouse
development. A planning board hearing for preliminary and final site plan and
subdivision approval occurred on
As of
Dream Homes Apartments
On
On
On
On
Application is being made currently for preliminary site plan approval and should be heard in May or June of 2021.
On
Properties in discussion with signed letters of intent, not in contract
Discussions have been occurring since December of 2017 and a signed letter of
intent has been offered to acquire property to develop 102 townhome units in
southern
These new developments with signed letters of intent, as well as the four
developments that are under contract and in development represent over
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Properties on hold due to delay in approvals, environmental concerns or other reasons
On
Since the transaction had not occurred for at least a portion of the Property within 12 months of the completion of the Due Diligence Period, as well as two 6-month extensions, the seller chose to terminate the contract. Though the Company retained the right to waive any remaining development contingencies and proceed to close on the property, it was determined by senior management that the risk of acquiring an unapproved property was not acceptable.
On
These new developments with signed letters of intent, as well as the four
developments that we have under contract and in development represent over
For the 4th year in a row, the Company was again awarded the Ocean County
Reader's
The phrase 'The Region's Most Trusted Builder' accurately describes the Company, which is becoming increasingly well known to homeowners in need of new custom modular and site-built homes, elevation & renovation work. The management team has never failed to complete a project in over 24 years in the industry.
The Company's business model over the last year has been focused on increasing the new home and new development portion of our business, until it represents 50% - 70% of our entire revenue stream, from the current level of 20%. New home development has a much greater scalability and growth potential than elevation/renovation work. The Company has enjoyed steady growth in the renovation/elevation portion of the company and anticipates that by year end 2018 each part of the company (new homes and elevation work) will represent 50% of total revenue. By mid-year 2019, new home construction and development should represent over 70% of revenue.
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Management hopes for steady growth in all segments of the company, since the
rebuilding process will occur over the next 15-20 years. The combined total
number of homes affected by Storm Sandy that will need to be raised or
demolished and rebuilt is in excess of 30,000 homes, of which less than 10,000
have been rebuilt. This remaining combined market for new construction and
elevation projects in the Company's market area is estimated to be in the range
of
Additionally, the Company has developed referral networks with 3 major modular
manufacturing companies, from which a dependable and steady stream of leads and
prospects has been received over the last 6-month period. Based on these
associations, as well as the recent acquisition of the
Since modular home manufacturers will not sell directly to the public, and will only sell to a licensed builder, manufacturers need dependable new home builders to refer their leads. The Company has proven itself to be a valuable trade partner for these 3 manufacturers and has received numerous prospects and leads, some of which have already turned into contracts.
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The Company has also recently developed and offered to the market, a modular Add-A-Level in A Day product, which offers a very rapid alternative to traditional renovation and elevation projects. It is anticipated that this product can be scaled easily and offered in a much more diverse market area, due to the limited duration of this type of project.
Among the Company's other assets that are currently held, are the rights to operate the educational construction seminar known as "Dream Homes Nearly Famous Rebuilding Seminar", as well as the informational blog known as the "Dream Homes Rebuilding Blog."
The Nearly Famous Rebuilding Seminar is held bi-monthly, and is a powerful educational tool for homeowners who need of rebuilding or renovations. This seminar has been presented steadily since early 2013, and is designed to educate and assist homeowners in deciphering the confusion about planning and executing complex residential construction projects.
Due to the opportunities afforded by the market conditions,
Critical Accounting Policies and Estimates
Our discussion and analysis of our financial condition and results of operations
are based on our financial statements, which have been prepared in accordance
with
Net Income (Loss) Per Common Share
Basic net income (Basic net loss) per common share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding during the period.
Diluted net income (loss) per common share is computed using the weighted average number of common shares outstanding and potentially dilutive securities outstanding during the period (none for the periods presented).
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RESULTS OF OPERATIONS - DREAM HOMES & DEVELOPMENT CORPORATION The summary of selected financial data table below
DREAM HOMES & DEVELOPMENT CORPORATION
STATEMENTS OF OPERATIONS
Year ended Year ended
December 31, 2020 December 31, 2019
Revenue:
Construction contracts $ 3,166,165 $ 3,103,011
Cost of construction contracts 2,381,062 2,090,966
Gross profit 785,103 1,012,045
Operating Expenses:
Selling, general and administrative, including
stock based compensation of $197,900 and
$88,194 , respectively 974,077 990,210
Depreciation expense 8,445 6,230
Total operating expenses 982,522 996,440
Income (loss) from operations (197,419 ) 15,605
Other income (expenses):
Cancellation of debt - 10,000
Interest expense (6,317 ) (8,301
Total other income (expenses) (6,317 ) 1,699
Net income (loss) before income taxes (203,736 ) 17,304
Provision for income taxes - 31,649
Net loss $ (203,736 ) $ (14,345 )
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Results of Operations - Comparison for the years ended
Revenues
For the years ended
Cost of Construction contracts and Sales
For the years ended
Operating Expenses
Operating expenses decreased
Major selling, general and administrative expenses for the year ended
insurance expense of
Liquidity and Capital Resources
As of
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The impact of inflation on the costs of our company, and the ability to pass on cost increases to clients over time is dependent upon market conditions. We are not aware of any inflationary pressures that have had any significant impact on our operations since inception, and we do not anticipate that inflationary factors will have a significant impact on future operations.
OFF-BALANCE SHEET ARRANGEMENTS
We do not maintain off-balance sheet arrangements nor do we participate in non-exchange traded contracts requiring fair value accounting treatment.
Risk
Foreign Currency Exchange Rate Risk
We are not exposed to potential gains or losses from foreign currency fluctuations.
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