Note 11 - Subsequent Events

6 Months Ended

Jun. 30, 2016

Subsequent Events [Abstract]

Note 11 - Subsequent Events

11. Subsequent Events

a)   Subsequent to June 30, 2016, the Company received proceeds of $166,500 pursuant to stock subscription agreements, whereby the Company sold 55,503 shares of common stock of the Company at $3.00 per share.

b)   Effective July 8, 2016, the deed of trust and $80,000 promissory note owed by the Company was amended such that the maturity date was extended from July 8, 2016 to July 8, 2017. Commencing July 8, 2016, the promissory note will bear interest 18% per annum initially and then 12% per annum after four months.

F-13

 c)  Effective July 13, 2016, the Company entered into the Master UPREIT Formation Agreement with Northern NM Properties, LLC (“Northern”), a New Mexico limited liability company, resulting in the formation of AHIT Northern NM Properties, LLP (“AHIT Northern”), a Maryland limited liability partnership. The Company is the General Partner of the limited liability partnership. AHIT Northern is intended to serve as an umbrella partnership real estate investment trust, commonly referred to as an “UPREIT”. Upon closing, AHIT Northern will acquire from the Northern limited partners, six single family residences, four apartments and sixteen mobile homes spaces (the “Homes”) located in New Mexico in exchange for a total consideration of approximately $1,333,000 consisting of 500,614 common units in the UPREIT valued at approximately $1,126,381, which carry with them certain option rights into shares of common stock in the Company, and the assumption of certain mortgage notes totaling to approximately $206,619. In addition, the Company agreed to retain the designee of the Limited Partner to serve as property manager of the Homes during the period from the closing of the transaction to the exercise of the conversion option. In consideration for the property management services, the Limited Partner or its designee shall receive a property management fee equal to a mutually agreeable yearly fee based on a good faith analysis of net profits from the operation of the partnership for the year, but under no circumstances in excess of $120,000. The agreement closed on August 2, 2016.

d) On July 15, 2016, the Company entered into an Employment Agreement with the Vice President of the Company for a term of one year. In addition to a $30,000 signing bonus, the Company issued 25,000 restricted shares as compensation and bi-weekly monetary compensation that is on par with the value of the services provided by the Vice President.

e)   On July 15 and 21, 2016, the Company entered into two Board Director Agreements whereby the Company agreed to issue an aggregate of 20,000 shares of common stock to the two Directors.

f) Effective July 18, 2016, the $180,000 promissory note owed by the Company was amended to extend the maturity date for another six months.

g) Subsequent to June 30, 2016, the Company issued 200,000 shares to two employees pursuant to the employment agreements as disclosed in Note 10.

h) Subsequent to June 30, 2016, the Company issued 439,401 shares of common stock to the CFO of the Company pursuant to the employment agreement as disclosed in Note 6(c).

i) Subsequent to June 30, 2016, the Company issued 25,000 shares of common stock to an employee for services rendered.