1. NATURE OF OPERATIONS AND BASIS OF PRESENTATION

Carnegie Development Inc (the “Company” or the “Parent Company”), is a publicly trading company under the symbol, “CDJM”

The company website is https://www.carnegie-development.com/

This Company was previously known as:

Escue Energy Inc until July 1, 2019

State of incorporation changed from Delaware to Nevada in 2015

	·	eDoorways Corporation,Inc. until 2015
	·	M Power Entertainment, Inc. until 2007
	·	GK Intelligent Systems, Inc. until 2005
	·	Technicraft Financial, Ltd. until 1994
	·	Incorporated in Delaware in February 1988

Effective July 1st, 2019 the Articles of Incorporation has been amended and the new name is Carnegie Development, Inc.

On Friday 5th June 2020, FINRA approved the name change as well as the symbol change. The new CUSSIP is 14350V108

The Company, and its Special Purpose Entities are engaged principally in the ownership, management, development, and operation of real estate development activities

On September 30, 2020, the Company acquired 99% of the Membership Interest ownership of six Special Purpose Entities (the “SPE”) in exchange of (a) Promissory Notes carrying an interest at the rate of 6% payable on or before September 30, 2025 and (b) 21,786 Shares of Series I Cumulative Convertible Preferred Stock.

The Group comprises of the Company and the following Special Purpose Entities:

	Effective Beneficial Ownership		Principal Activity
126 Villita LLC		99%	Real Estate Development
D4AVEG, LLC,		99%	Real Estate Development
D4KL LLC		99%	Real Estate Development
Mansion Apartment Homes at Maine Creek LLC		99%	Real Estate Development
Ridgeview Addition LLC		99%	Real Estate Development
Villita Towers LLC		99%	Real Estate Development

Going concern

The Group has an accumulated deficit of $ 3,942,409 as on the reporting date and there was no revenue since inception.

The Group is also seeking debt or equity financing to fund its development plan although no financing arrangements are currently in place and the Group can provide no assurance that financing will be available on acceptable terms. However, the management believes that the actions for (a) obtaining the additional funds and (b) implementing its strategic plans, provide the opportunity for the Group to continue as a going concern.

Basis of Presentation

These condensed financial statements have been prepared by the Company in accordance with GAAP for interim financial information and the applicable rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all information and footnotes required by GAAP for complete financial statements. However, in the opinion of management, the interim financial statements include all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of the results of the periods presented. The results of operations for the three and nine months ended September 30, 2020 and 2019, are not necessarily indicative of the results that may be expected for the full year. These condensed consolidated financial statements should be read in conjunction with the Company’s audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019.