Real Estate Held for Sale

9 Months Ended

Jan. 31, 2016

Notes to Financial Statements

Real Estate Held for Sale

As discussed in Note 5, the Company acquired an interest in 30 condominium units pursuant to the Megawest Transaction.  Between October 15, 2015 and January 31, 2016, the Company sold 24 condominium units with a book value of $12,262,090 for gross proceeds of $23,701,524. The Company incurred commissions and closing costs of $1,200,935 for the 24 units sold.  As of January 31, 2016, proceeds from the sale of several units was received by Fortis, but only a portion had been transferred to the Company as of January 31, 2016. See Note 5.

The following table summarizes the activity for real estate held for sale:

	January 31, 2016
Balance at April 30, 2015	$	-
Additions - 30 condominium units contributed by Fortis		15,544,382
Cost of sales - 24 condominium units		(12,262,090	)
Balance at January 31, 2016	$	3,282,292

The Company reviewed the accounting standards, Real Estate - General (ASC 970-10) and Property, Plant, and Equipment (ASC 360-10), to determine the appropriate classification for this property. According to ASC 970-10, real estate that is held for sale in the ordinary course of business is classified as inventory, which is a current asset. ASC 360-10 provides the following criteria for property to be classified as held for sale:

• Management with the appropriate authority commits to a plan to sell the asset;

• The asset is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets;

• An active program to locate a buyer and other actions required to complete the plan of sale have been initiated;

• The sale of the property or asset within one year is probable and will qualify for accounting purposes as a sale;

• The asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and

• Actions required to complete the plan of sale indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn.

The Company had sales of units during the period and has reviewed the recent interest for remaining units. Based on the review, the Company believes that the sale of the remaining units within one year is probable. The Company concluded that all of these criteria have been met for these properties and that they are appropriately classified as held for sale in current assets.