U.S. SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
| ☒ | Quarterly Report Under Section 13 or 15(d) of the Securities Exchange Act of 1934 |
| For the quarterly period ended December 31, 2014 | |
| ☐ | Transition Report Pursuant to 13 or 15(d) of the Securities Exchange Act of 1934 |
| For the transition period of to |
Commission File Number 0-7865.
SECURITY LAND AND DEVELOPMENT CORPORATION
(Exact name of issuer as specified in its charter)
| Georgia | 58-1088232 | |
| (State or other Jurisdiction of Incorporation or Organization) |
(I.R.S. Employer Identification Number) |
2816 Washington Road, #103, Augusta,
Georgia 30909
(Address of Principal Executive Offices)
Issuers Telephone Number (706) 736-6334
(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Year)
Check whether the Issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES ☒ NO ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in rule 12b-2 of the Exchange Act.
| Large accelerated filer ☐ | Accelerated filer ☐ |
| Non-accelerated filer ☐ (Do not check if a smaller reporting company) | Smaller reporting company ☒ |
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). YES ☒ NO ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
☐ Yes ☒ No
State the number of shares outstanding of each of the issuer’s classes of common equity, as of the latest practicable date.
| Class | Outstanding at February 11, 2015 | |
| Common Stock, $0.10 Par Value | 5,243,107 shares |
Table of Contents
SECURITY LAND AND DEVELOPMENT CORPORATION
Form 10-Q
Index
SECURITY LAND
AND DEVELOPMENT CORPORATION
CONSOLIDATED BALANCE SHEETS
| December 31, | September 30, | |||||||
| 2014 | 2014 | |||||||
| (unaudited) | ||||||||
| ASSETS | ||||||||
| CURRENT ASSETS | ||||||||
| Cash | $ | 30,284 | $ | 65,982 | ||||
| Receivables from tenants, net of allowance of $46,392 and $43,578 at December 31, 2014 and September 30, 2014, respectively | 380,695 | 527,579 | ||||||
| Total current assets | 410,979 | 593,561 | ||||||
| INVESTMENT PROPERTIES | ||||||||
| Investment properties for lease, net of accumulated depreciation | 5,419,385 | 5,459,560 | ||||||
| Land and improvements held for investment or development | 3,639,598 | 3,639,598 | ||||||
| 9,058,983 | 9,099,158 | |||||||
| OTHER ASSETS | 74,105 | 76,239 | ||||||
| $ | 9,544,067 | $ | 9,768,958 | |||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| CURRENT LIABILITIES | ||||||||
| Accounts payable and accrued expenses | $ | 283,941 | $ | 452,669 | ||||
| Income taxes payable | 251,146 | 229,031 | ||||||
| Current maturities of notes payable | 455,969 | 554,065 | ||||||
| Current maturities of deferred revenue | 12,326 | 18,489 | ||||||
| Current note payable to stockholder | 50,433 | 50,433 | ||||||
| Total current liabilities | 1,053,815 | 1,304,687 | ||||||
| LONG-TERM LIABILITIES | ||||||||
| Notes payable, less current portion | 2,372,643 | 2,435,541 | ||||||
| Deferred income taxes | 733,733 | 737,230 | ||||||
| Total long-term liabilities | 3,106,376 | 3,172,771 | ||||||
| Total liabilities | 4,160,191 | 4,477,458 | ||||||
| STOCKHOLDERS’ EQUITY | ||||||||
| Common stock, par value $.10 per share; 30,000,000 shares authorized; 5,243,107 shares issued and outstanding | 524,311 | 524,311 | ||||||
| Additional paid-in capital | 333,216 | 333,216 | ||||||
| Retained earnings | 4,526,349 | 4,433,973 | ||||||
| Total Stockholders’ Equity | 5,383,876 | 5,291,500 | ||||||
| Liabilities and Stockholders’ Equity | $ | 9,544,067 | $ | 9,768,958 | ||||
The accompanying notes are an integral part of these consolidated financial statements.
| - 1 - |
SECURITY LAND
AND DEVELOPMENT CORPORATION
CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS
| For the Three Month Period Ended December 31, |
||||||||
| 2014 | 2013 | |||||||
| (unaudited) | (unaudited) | |||||||
| OPERATING REVENUE | ||||||||
| Rent revenue | $ | 381,272 | $ | 373,748 | ||||
| OPERATING EXPENSES | ||||||||
| Depreciation and amortization | 42,311 | 32,937 | ||||||
| Property taxes | 64,422 | 67,863 | ||||||
| Payroll and related costs | 21,871 | 20,133 | ||||||
| Insurance and utilities | 8,771 | 7,635 | ||||||
| Repairs and maintenance | 16,124 | 23,720 | ||||||
| Professional services | 24,944 | 11,580 | ||||||
| Bad debt | 2,814 | - | ||||||
| Penalties | 4,518 | - | ||||||
| Other | 1,714 | 604 | ||||||
| 187,489 | 164,472 | |||||||
| Operating income | 193,783 | 209,276 | ||||||
| OTHER EXPENSE | ||||||||
| Interest | 44,887 | 47,399 | ||||||
| Income before income taxes | 148,896 | 161,877 | ||||||
| INCOME TAXES PROVISION (BENEFIT) | ||||||||
| Income tax expense | 60,017 | 61,931 | ||||||
| Income tax deferred benefit | (3,497 | ) | (481 | ) | ||||
| 56,520 | 61,450 | |||||||
| Net income | 92,376 | 100,427 | ||||||
| RETAINED EARNINGS, BEGINNING OF PERIOD | 4,433,973 | 4,104,155 | ||||||
| RETAINED EARNINGS, END OF PERIOD | $ | 4,526,349 | $ | 4,204,582 | ||||
| PER SHARE DATA | ||||||||
| Net income per common share | $ | 0.02 | $ | 0.02 | ||||
The accompanying notes are an integral part of these consolidated financial statements.
| - 2 - |
SECURITY LAND
AND DEVELOPMENT CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
| For the Three Month Period Ended December 31, |
||||||||
| 2014 | 2013 | |||||||
| (Unaudited) | (Unaudited) | |||||||
| OPERATING ACTIVITIES | ||||||||
| Net income | $ | 92,376 | $ | 100,427 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 42,309 | 32,938 | ||||||
| Deferred income tax | (3,497 | ) | (481 | ) | ||||
| Changes in deferred and accrued amounts | (5,894 | ) | 9,648 | |||||
| Net cash provided by operating activities | 125,294 | 142,532 | ||||||
| FINANCING ACTIVITIES | ||||||||
| Principal payments on notes payable | (160,994 | ) | (142,150 | ) | ||||
| Net cash used in financing activities | (160,994 | ) | (142,150 | ) | ||||
| Net (decrease) increase in cash | (35,700 | ) | 382 | |||||
| CASH, BEGINNING OF PERIOD | 65,982 | 24,599 | ||||||
| CASH, END OF PERIOD | $ | 30,282 | $ | 24,981 | ||||
| SUPPLEMENTAL CASH FLOW INFORMATION: | ||||||||
| Cash paid for interest | $ | 43,389 | $ | 47,399 | ||||
| Cash paid for income taxes | $ | 37,902 | $ | - | ||||
The accompanying notes are an integral part of these consolidated financial statements.
| - 3 - |
SECURITY LAND AND DEVELOPMENT CORPORATION
Notes to the Consolidated Financial Statements
Note 1 – Basis of Presentation
The accompanying unaudited consolidated financial statements were prepared in accordance with instructions for Form 10-Q, Article 8 of Regulation S-X and accounting principles generally accepted in the United States of America; therefore, they do not include all disclosures necessary for a complete presentation of financial condition, results of operations, and cash flows. Such statements are unaudited but, in the opinion of management, reflect all adjustments, which are of a normal recurring nature and necessary for a fair presentation of results for the selected interim periods. Users of financial information produced for interim periods are encouraged to refer to the footnotes contained in the audited financial statements appearing in our Form 10-K for the year ended September 30, 2014 when reviewing these interim financial statements.
The financial statements include estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The consolidated financial statements include the accounts of Security Land and Development Corporation and its four wholly owned subsidiaries, Royal Palms Motel, Inc., SLDC, LLC, SLDC 2, LLC and SLDC III, LLC (described on a consolidated basis as the “Company”). Significant intercompany transactions and accounts are eliminated in consolidation.
Critical Accounting Policies:
Estimates of Useful Lives of Investment Properties for Purposes of Depreciation
Management has estimated useful lives of investment properties, except for land, that is leased, and the Company utilizes the straight-line method to compute depreciation over the estimated useful lives of the investment properties. Actual depreciation of investment properties will vary from management’s estimates, and the value of investment properties is more directly impacted by market conditions and the physical condition of the investment properties.
Evaluation of Long-Lived Assets for Impairment
The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of investment properties may not be recoverable. In evaluating recoverability, the Company generally estimates future cash flows expected to result from the use of the asset and its eventual disposition. An impairment loss is recognized when the expected future cash flows of the asset are less than its carrying amount.
Estimates of Income Tax Rates Applicable to Deferred Taxes
The Company has deferred income taxes through a series of tax-deferred like-kind exchange transactions on certain investment properties and through accelerated depreciation elections on certain other assets. Actual income taxes that may become due when taxable gains are realized on the sale of assets may differ from management’s estimates as a result of changes in tax laws, the tax status of the Company, or the actual taxable earnings of the Company in the periods the deferred income taxes become due.
Refer to the Company’s Form 10-K for the year ended September 30, 2014 for further information regarding its critical accounting policies.
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts (Topic 606). The new standard is effective for reporting periods beginning after December 15, 2016 and early adoption is not permitted. The comprehensive new standard will supersede existing revenue recognition guidance and require revenue to be recognized when promised goods or services are transferred to customers in amounts that reflect the consideration to which the Company expects to be entitled in exchange for those goods or services. Adoption of the new rules could affect the timing of revenue recognition for certain transactions. The guidance permits two implementation approaches, one requiring retrospective application of the new standard with restatement of prior years and one requiring prospective application of the new standard with disclosure of results under old standards. The Company is currently evaluating the impacts of adoption and the implementation approach to be used.
| - 4 - |
Note 2 – Investment Properties
Investment properties leased or held for lease to others under operating leases consisted of the following at December 31, 2014 and September 30, 2014:
| December 31, 2014 |
September 30, 2014 |
|||||||
| (unaudited) | ||||||||
| National Plaza building, land and improvements | $ | 5,325,348 | $ | 5,325,348 | ||||
| Evans Ground Lease, land and improvements | 2,382,673 | 2,382,673 | ||||||
| Commercial land and improvements | 3,639,598 | 3,639,598 | ||||||
| 11,347,619 | 11,347,619 | |||||||
| Less accumulated depreciation | (2,400,299 | ) | (2,360,803 | ) | ||||
| 8,947,320 | 8,986,816 | |||||||
| Residential rental property | 145,847 | 145,847 | ||||||
| Less accumulated depreciation | (34,184 | ) | (33,505 | ) | ||||
| 111,663 | 112,342 | |||||||
| Investment properties for lease, net of accumulated depreciation | $ | 9,058,983 | $ | 9,099,158 | ||||
Depreciation expense totaled approximately $40,000 for the three-month period ended December 31, 2014 and approximately $31,000 for the three-month period ended December 31, 2013.
The National Plaza is a retail strip center located on Washington Road in Augusta Georgia. Approximately 81% of the rentable space at the National Plaza is leased to Publix Supermarkets, Inc., the National Plaza’s anchor tenant.
The Company entered into a long-term ground lease with a major national tenant and its developer in May 2006 on approximately 18 acres of land in Columbia County, Georgia. The agreement required monthly rental payments of $20,833 during the development period, which was completed in January 2007. Following the expiration of the development period, the lease requires annual rental payments of $500,000 for the first 5 years then increasing 5% in years 6, 11, and 16. The lessee has an option to renew at year 21 and another option every 5 years thereafter for a possible total lease term of 50 years. The lease provides for the tenant to pay for insurance and property taxes. The Company is recognizing rents on a straight-line basis over the lease term.
| - 5 - |
Note 2 – Investment Properties, Continued
The Company holds several parcels of land for investment or development purposes, including 19.38 acres of land in North Augusta, South Carolina, purchased in parcels during 2007 and 2008. The Company also owns approximately 85 acres of land in south Richmond County, Georgia and a 1.1 acre parcel along Washington Road in Augusta, Georgia that adjoins the Company’s National Plaza investment property. The aggregate costs of these investment properties held for investment or development was $3,639,598 at December 31, 2014 and September 30, 2014.
Refer to the Company’s Form 10-K for the year ended September 30, 2014 for further information on operating lease agreements and land held for investment or development purposes.
Note 3 – Notes Payable
Notes payable consisted of the following at:
| December 31, 2014 |
September 30, 2014 |
||||||||
| (unaudited) | |||||||||
| In November of 2012, the Company converted the line of credit to a fixed rate loan due December 2017. The new term loan accrues interest at 5.5% annually with monthly installments of $3,287. The current balance relates to the purchase of the 1 acre adjoining the North Augusta, South Carolina property in May 2008 and is collateralized by the residential property on Stanley Drive in Augusta, Georgia. | $ | 254,046 | $ | 260,323 | |||||
| A note payable to an insurance company, secured with a mortgage interest in National Plaza and an assignment of rents. The note is payable in monthly installments of $35,633, including principal and interest, through June 2015, and bears interest at a fixed rate of 7.875%. | 208,972 | 310,423 | |||||||
| A note payable to a regional financial institution collateralized with 17.54 acres of land in North Augusta, South Carolina. The note is payable in monthly installments of $7,563, including principal and interest, through July 2018, and bears interest at a fixed rate of 5%. | 300,322 | 319,330 | |||||||
| A note payable to an insurance company collateralized with approximately 18 acres of land in Columbia County, Georgia, and an assignment of the long-term ground lease. The note is payable in monthly installments of $17,896, including principal and interest, through May 1, 2027, and bears interest at a fixed rate of 5.85%. | 1,892,266 | 1,918,026 | |||||||
| A construction loan to a regional financial institution collateralized with 17.54 acres of land in North Augusta, South Carolina. The loan was procured to finance tenant improvements for the lease of in-line space at National Plaza executed on January 17, 2014. In April, 2014 construction of the tenant improvements was completed and with total principal borrowed of $186,804. The loan converted to a note payable with monthly installments of $3,728 including principal and interest over a 60 month term with fixed interest of 4.25%. The related lease agreement calls for monthly payments of this amount to be paid to the Company in addition to monthly minimum rental payments. | 173,006 | 181,504 | |||||||
| A note payable to a stockholder, who is also a member of the Flanagin Family, to meet the cash flow needs of the Company. The note matures in July 2015 and accrues interest at 5%. | 50,433 | 50,433 | |||||||
| 2,879,045 | 3,040,039 | ||||||||
| Less current maturities | (506,402 | ) | (604,498 | ) | |||||
| $ | 2,372,643 | $ | 2,435,541 | ||||||
| - 6 - |
Note 3 – Notes Payable, Continued
Management of the Company expects future liquidity needs of the Company to be funded from rent revenues, refinancing and the appreciation in investment properties (which can be sold or mortgaged, if necessary). Additionally, funding can be obtained from members of the Company’s Board of Directors.
Current maturities of notes payable will require the Company to make payments over the next 12 months totaling $506,402. The Company projects that it will be able to fund the payment of its current maturities of notes payable through cash flows generated from its operations and cash on hand, but there can be no assurance that this will occur.
If the Company is unsuccessful in their efforts described above, the Company intends to seek additional financing or sell certain of its assets.
Note 4 – Income Taxes
The Company has a total outstanding payable for income tax in the amount of $251,146 at December 31, 2014. Of this amount, $56,520 of which is related to the fiscal year 2015. At September 30, 2014 the Company had outstanding income tax payable of $229,031, all of which was related to the fiscal year 2014.
Note 5 – Concentrations
Substantially all of the Company’s assets consist of real estate located in Richmond and Columbia Counties in the state of Georgia and in Aiken County, South Carolina. Approximately 99% of the Company’s revenues are earned from two of the Company’s investment properties, National Plaza and the Evans Ground Lease, which comprise approximately 56% and 44% of the Company’s revenues, respectively. The anchor tenant for National Plaza, Publix Supermarkets, Inc. (“Publix”), a regional food supermarket chain, leases approximately 81% of the space at National Plaza. The Company generates approximately 37% of its revenues though its lease with Publix.
Note 6 – Related Party Transactions
The Company hired an attorney who is also a member of the Company’s Board of Directors and who also serves as Vice President of the Company, to represent the Company in a legal matter regarding a tenant’s claim for reimbursement of certain expenses charged. It is the opinion of the Company’s management that the Company is not liable for this claim.
During the second quarter of fiscal 2014, the Company borrowed $50,015 from a stockholder, who is also a member of the Flanagin family, to meet cash flow needs. The amount matures in July 2015 and accrues interest at a rate of 5%. The note balance at December 31, 2014 is $50,433 which includes $418 of accrued interest.
| - 7 - |
| Increase (Decrease) | ||||||||||||||
| 2014 compared to 2013 | ||||||||||||||
| 2014 | 2013 | Amount | Percent | |||||||||||
| Rent revenue | $ | 381,272 | $ | 373,748 | $ | 7,524 | 2 | % | ||||||
| Operating expenses | 187,489 | 164,472 | 23,017 | 14 | % | |||||||||
| Interest expense | 44,887 | 47,399 | (2,512 | ) | -5 | % | ||||||||
| Income tax expense | 56,520 | 61,450 | (4,930 | ) | -8 | % | ||||||||
| Net income | 92,376 | 100,427 | (8,051 | ) | -8 | % | ||||||||
| Rent revenue consists primarily of rent revenue from the Company’s National Plaza, a strip center on Washington Road in Augusta, Georgia, and the Evans Ground Lease in Evans, Georgia. The Company also earned rent revenue from a ground lease with an auto-repair service operation on an out-parcel of National Plaza. | |
| Refer to the Company’s Form 10-K for the year ended September 30, 2014 for further information regarding the properties owned and their lease terms. | |
| Total operating expenses for the three months ended December 31, 2014 increased compared to the same period for 2013 due primarily to increased depreciation expense, professional fees and income tax penalties. Depreciation expense increased due to capital expenses incurred in relation to a tenant buildout in 2014. Professional fees increased due to increased legal fees compared to the prior year related to an ongoing dispute over a tenant’s claim for reimbursement of certain expenses charged. This dispute is unresolved as of December 31, 2014. It is the opinion of the Company’s management that the Company does not owe any reimbursement. Tax penalties incurred in 2014 that were not incurred in 2013 relate to the Companies outstanding income tax balance at December 31, 2014. Management expects operating expenses for the remainder of the current fiscal year to be comparable to the current operating period. | |
| Interest expense for the three month period ended December 31, 2014 decreased compared to 2013 due to the decrease in debt resulting from scheduled principal payments. Management expects interest expense for the remainder of the current fiscal year to continue to decrease slightly as outstanding debt is amortized. | |
| Income tax expense for the three month period ended December 31, 2014 decreased slightly compared to the same period for 2013 due mainly to higher operating expenses as noted above. Management expects income tax expense for the remainder of the current fiscal year to be comparable to the current operating period. |
| - 8 - |
| - 9 - |
| (a) | Exhibit No. | Description | |
| 31.1 | Certification Pursuant to Section 302 of Sarbanes-Oxley Act of 2002 | ||
| 32.1 | Certification Pursuant to Section 906 of Sarbanes-Oxley Act of 2002 | ||
| 101 | The following financial information from Security Land and Development Corporation’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2014 is formatted in Extensible Business Reporting Language (XBRL): (i) The Consolidated Balance Sheets, (ii) the Consolidated Statements of Income and Retained Earnings, (iii) the condensed Consolidated Statements of Cash Flows and (iv) Notes to Consolidated Financial Statements. |
| - 10 - |
In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
SECURITY LAND AND DEVELOPMENT CORPORATION
(Registrant)
| By: | /s/ T. Greenlee Flanagin | February 11, 2015 | |
| T. Greenlee Flanagin | Date | ||
| President | |||
| Chief Executive Officer and Chief Financial Officer |
| - 11 - |
EXHIBIT 31.1
CERTIFICATIONS
I, T. Greenlee Flanagin, certify that:
1. I have reviewed this quarterly report on Form 10-Q of Security Land and Development Corporation;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and have:
a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5. The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors.
a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information.
b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
| Date: February 11, 2015 | |
| /s/ T. Greenlee Flanagin | |
| T. Greenlee Flanagin | |
| President and Chief Executive Officer and | |
| Chief Financial Officer |
EXHIBIT 32.1
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of Security Land and Development Corporation (the “Company”) on Form 10-Q for the quarter ended December 31, 2014 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, T. Greenlee Flanagin, President and Chief Executive Officer of the Company, does hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:
| (1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and | |
| (2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
| By: | ||
| /s/ T. Greenlee Flanagin | ||
| T. Greenlee Flanagin | ||
| President | ||
| Chief Executive Officer and Chief | ||
| Financial Officer | ||
| February 11, 2015 | ||
A signed original of this written statement required by Section 906 has been provided to Security Land and Development Corporation and will be retained by Security Land and Development Corporation and furnished to the Securities and Exchange Commission or its staff upon request.
|
Income Taxes
|
3 Months Ended |
|---|---|
|
Dec. 31, 2014
|
|
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Note 4 – Income Taxes
The Company has a total outstanding payable for income tax in the amount of $251,146 at December 31, 2014. Of this amount, $56,520 of which is related to the fiscal year 2015. At September 30, 2014 the Company had outstanding income tax payable of $229,031, all of which was related to the fiscal year 2014. |