Note 6 - Real Estate

6 Months Ended

Jun. 30, 2022

Notes to Financial Statements

Real Estate Disclosure [Text Block]

NOTE 6. REAL ESTATE

EDI Real Estate, LLC

Through EDI Real Estate, as of June 30, 2022, and  December 31, 2021, the Company identified the following units as held for resale or held for investment as noted below:

EDI Real Estate	June 30, 2022		December 31, 2021
Units occupied or available for rent		0		1
Vacant lots held for investment		2		2
Total units held for investment		2		3

As of June 30, 2022, the two vacant lots located in Roanoke, Virginia are not assigned a value on the accompanying consolidated balance sheets, as the lots hold limited value due to their rural location and lack of utility and access.

The unit held for investment as of December 31, 2021, consisted of a single-family residential rental unit. This property was sold during the prior three-month period ended March 31, 2022.

The lease in effect as of December 31, 2021, was based on a month-to-month provision as the initial annual term of the lease had been completed. An outside property management company managed this rental property on behalf of the Company. As this property was sold during the prior three-month period ended March 31, 2022, there are no anticipated future rental revenues.

EDI Real Estate	June 30, 2022		December 31, 2021
Total real estate held for investment	$	—	$	43,821
Accumulated depreciation		—		(16,910	)
Real estate held for investment, net	$	—	$	26,911

For the three- and six-month periods ended June 30, 2022 and 2021, depreciation expense on the EDI Real Estate portfolio of properties was $0 and $398, and $555 and $2,932, respectively.

EDI Real Estate’s sole remaining residential property was sold during the prior three-month period ended March 31, 2022. Gross proceeds for the sale of the property were $75,000 and net proceeds totaled $69,603. This compares to the property’s carrying value of $26,463, which resulted in a gain of $43,140 on the sale. Three properties were sold during the three- and six-month periods ended June 30, 2021. Total gross proceeds for the sales of the three properties was $332,000 and net proceeds totaled $75,395. This compares to their carrying value of $211,213, which resulted in a net gain of $120,787 for the three- and six-month periods. No properties were purchased during the three- and six-month periods ended June 30, 2022 and 2021.

No impairment adjustments were recorded on the EDI Real Estate portfolio during the three- and six-month periods ended June 30, 2022, and 2021.