Revision of Prior Year Immaterial Misstatement

12 Months Ended

Dec. 31, 2021

Condensed Financial Information Disclosure [Abstract]

REVISION OF PRIOR YEAR IMMATERIAL MISSTATEMENT

NOTE 2 – REVISION OF PRIOR YEAR IMMATERIAL MISSTATEMENT

Immaterial Misstatement – Springlake Purchase Price Allocation

During the year ended December 31, 2021, the Company identified an error in the allocation of the purchase price of its Springlake community acquired in November 2019 that overstated the value of buildings and understated the value of land improvements and land on the balance sheet.

The Company assessed the materiality of this error considering both qualitative and quantitative factors and determined that for the quarters ended December 31, 2019 through September 30, 2021, the error was material to the individual line items on the balance sheet, but immaterial to the balance sheet in total since the correction only requires a reclassification.

The Company determined that for the quarters ended December 31, 2019 through September 30, 2021, the error was immaterial to the consolidated statement of operations, consolidated statement of changes in deficit, and consolidated statement of cash flows, so the impact to these statements is not presented below.

The Company has decided to correct this error as a revision to its previously issued consolidated balance sheet for the quarters ended December 31, 2019 through September 30, 2021. To correct this error, the Company reclassified $1,105,863 from buildings to land improvements and $476,787 from buildings to land in accordance with a third-party appraisal of the property.

Immaterial Misstatement – 2020 Homes Sale to Gvest VIEs

During the year ended December 31, 2021, the Company identified an error in the recording of the December 2020 related party sale of mobile homes to Gvest Finance LLC and Gvest Homes I LLC. The Company recorded the sale of all 364 park owned homes within the ARC, Countryside, Crestview, and Maple communities, but only 305 park owned homes were sold. The Company retained ownership of the remaining homes located within the ARC, Crestview, and Maple communities.

The Company assessed the materiality of this error considering both qualitative and quantitative factors and determined that for the year ended December 31 2020, the error was immaterial to the consolidated balance sheet, and consolidated statement of changes in deficit in total, but material to the amounts attributable to VIEs versus attributable to Manufactured Housing Properties Inc.

The Company has decided to correct this error as a revision to its previously issued consolidated balance sheet and statement of changes in deficit for the year and quarters ended December 31, 2020 through September 30, 2021 and has reclassified $869,481 from accumulated Manufactured Housing Properties Inc. deficit instead to non-controlling interest in VIE.

The Company determined for the quarters ended December 31, 2020 through September 30, 2021, the error was immaterial to the consolidated statement of operations. The consolidated statement of cash flows is not presented because there is no impact on total cash flows from operating, investing, or financing activities from this error.

The tables below present the impacts of the revisions in the Company’s consolidated financial statements.

Consolidated Balance Sheets

	December 31, 2019			March 31, 2020			June 30, 2020			September 30, 2020			December 31, 2020			March 31, 2021			June 30, 2021			September 30, 2021
As Previously Reported:
Land	$	10,885,938		$	12,094,338		$	11,378,818		$	11,378,818		$	11,293,818		$	12,343,818		$	12,343,818		$	15,293,818
Land Improvements		17,466,801			20,286,401			21,845,771			22,007,126			20,924,112			21,506,262			21,580,874			24,107,172
Buildings		7,067,520			7,396,472			6,791,371			7,048,699			8,026,993			9,025,775			9,586,461			12,735,309
Construction in Process		-			-			-			-			-			-			-			1,897,258
Total Investment Property		35,420,259			39,777,211			40,015,960			40,434,643			40,244,923			42,875,855			43,511,153			54,033,557
Accumulated MHPC Deficit		(3,840,085	)		(4,194,251	)		(4,440,913	)		(4,497,737	)		(4,443,675	)		(4,857,951	)		(5,044,928	)		(4,621,293	)
Total MHPC Deficit		(2,956,875	)		(3,741,871	)		(4,444,310	)		(4,932,523	)		(5,372,270	)		(6,314,063	)		(7,004,003	)		(7,137,732	)
NCI in VIE		25,707			21,257			26,030			40,303			450,206			497,662			586,010			39,504
Total Deficit		(2,931,168	)		(3,720,614	)		(4,418,280	)		(4,892,220	)		(4,922,064	)		(5,816,401	)		(6,417,993	)		(7,098,228	)
Adjustments:
Land	$	476,787		$	476,787		$	476,787		$	476,787		$	476,787		$	476,787		$	476,787		$	476,787
Land Improvements		1,105,863			1,105,863			1,105,863			1,105,863			1,105,863			1,105,863			1,105,863			1,105,863
Buildings		(1,582,650	)		(1,582,650	)		(1,582,650	)		(1,582,650	)		(1,582,650	)		(1,582,650	)		(1,582,650	)		(1,582,650	)
Construction in Process		-			-			-			-			-			-			-
Total Investment Property		-			-			-			-			-			-			-			-
Accumulated MHPC Deficit		-			-			-			-			869,481			869,481			869,481			869,481
Total MHPC Deficit		-			-			-			-			869,481			869,481			869,481			869,481
NCI in VIE		-			-			-			-			(869,481	)		(869,481	)		(869,481	)		(869,481	)
Total Deficit		-			-			-			-			-			-			-			-
As Revised:
Land	$	11,362,725		$	12,571,125		$	11,855,605		$	11,855,605		$	11,770,605		$	12,820,605		$	12,820,605		$	15,770,605
Land Improvements		18,572,664			21,392,264			22,951,264			23,112,989			22,029,975			22,612,125			22,686,737			25,213,035
Buildings		5,484,870			5,813,822			5,208,721			5,466,049			6,444,343			7,443,125			8,003,811			11,152,659
Construction in Process		-			-			-			-			-			-			-			1,897,258
Total Investment Property		35,420,259			39,777,211			40,015,960			40,434,643			40,244,923			42,875,855			43,511,153			54,033,557
Accumulated MHPC Deficit		(3,840,085	)		(4,194,251	)		(4,440,913	)		(4,497,737	)		(3,574,194	)		(3,988,470	)		(4,175,447	)		(3,751,812	)
Total MHPC Deficit		(2,956,875	)		(3,741,871	)		(4,444,310	)		(4,932,523	)		(4,502,789	)		(5,444,582	)		(6,134,522	)		(6,268,251	)
NCI in VIE		25,707			21,257			26,030			40,303			(419,275	)		(371,819	)		(283,471	)		(829,977	)
Total Deficit		(2,931,168	)		(3,720,614	)		(4,418,280	)		(4,892,220	)		(4,922,064	)		(5,816,401	)		(6,417,993	)		(7,098,228	)

Consolidated Statements of Changes in Deficit

	31-Dec-20			31-Mar-21			30-Jun-21			30-Sep-21
As Previously Reported:
Accumulated Deficit - MHPC - Deemed Dividend	-			-			-			-
Total MHPC Accumulated Deficit		(4,443,675	)		(4,857,951	)		(5,044,928	)		(4,621,293	)
Total MHPC Deficit		(5,372,270	)		(6,314,063	)		(7,004,003	)		(7,137,732	)
Non-Controlling Interest		450,206			497,662			586,010			39,504
Consolidated Deficit		(4,922,064	)		(5,816,401	)		(6,417,993	)		(7,098,228	)
Adjustments
Accumulated Deficit - MHPC - Deemed Dividend		869,481			869,481			869,481			869,481
Total MHPC Accumulated Deficit		869,481			869,481			869,481			869,481
Total MHPC Deficit		869,481			869,481			869,481			869,481
Non-Controlling Interest		(869,481	)		(869,481	)		(869,481	)		(869,481	)
Consolidated Deficit		-			-			-			-
As Revised:
Accumulated Deficit - MHPC - Deemed Dividend		869,481			-			-			-
Total MHPC Accumulated Deficit		(3,574,194	)		(3,988,470	)		(4,175,447	)		(3,751,812	)
Total MHPC Deficit		(4,502,789	)		(5,444,582	)		(6,134,522	)		(6,268,251	)
Non-Controlling Interest		(419,275	)		(371,819	)		(283,471	)		(829,977	)
Consolidated Deficit		(4,922,064	)		(5,816,401	)		(6,417,993	)		(7,098,228	)