said in April after sealing the deal. “I don’t care about the economics at all.”

He cared a little more when the subsequent plunge in the stock market meant that he was overpaying by a significant amount. Analysts estimated that Twitter was worth not $44 billion but $30 billion, or maybe even less. For a few months, Mr. Musk tried to get out of the deal.

This had the paradoxical effect of bringing the transaction down to earth for spectators. Who among us has not failed to do due diligence on a new venture — a job, a house, even a relationship — and then realized that it was going to cost so much more than we had thought? Mr. Musk’s buying Twitter, and then his refusal to buy Twitter, and then his being forced to buy Twitter after all — and everything playing out on Twitter — was weirdly relatable.

Inescapable, too. The apex, or perhaps the nadir, came this month when Mr. Musk introduced a perfume called Burnt Hair, described on its website as “the Essence of Repugnant Desire.”

“Please buy my perfume, so I can buy Twitter,” Mr. Musk tweeted on Oct. 12, garnering nearly 600,000 likes. This worked, apparently; the perfume is now marked “sold out” on its site. Did 30,000 people really pay $100 each for a bottle? Will this perfume actually be produced and sold? (It’s not supposed to be released until next year.) It’s hard to tell where the joke stops, which is perhaps the point.

Evan Spiegel.

“What was unique about Twitter was that no one actually controlled it,” said Richard Greenfield, a media analyst at LightShed Partners. “And now one person will own it in its entirety.”

He is relatively hopeful, however, that Mr. Musk will improve the site, somehow. That, in turn, will have its own consequences.

“If it turns into a massive home run,” Mr. Greenfield said, “you’ll see other billionaires try to do the same thing.”

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Impac Mortgage Holdings, Inc. Announces Completion of Exchange Offers Relating to its Preferred Stock

IRVINE, Calif.–(BUSINESS WIRE)–Impac Mortgage Holdings, Inc. (NYSE American: IMH) (the “Company”) today announced the completion of its previously announced offers to each holder of the Company’s 9.375% Series B Cumulative Redeemable Preferred Stock, par value $0.01 per share (“Series B Preferred Stock”) and each holder of the Company’s 9.125% Series C Cumulative Redeemable Preferred Stock, par value $0.01 per share (the “Series C Preferred Stock,” and together with the Series B Preferred Stock, the “Preferred Stock”) to exchange all outstanding shares of Preferred Stock for certain stock and warrant consideration (the “Exchange Offers”).

In conjunction with the closing of the Exchange Offers, the Company will issue approximately (A) (i) 6,142,213 shares of Common Stock and (ii) 13,823,340 shares of the Company’s 8.25% Series D Cumulative Redeemable Preferred Stock, par value $0.01 per share (the “New Preferred Stock”) in exchange for the shares of Series B Preferred Stock tendered in the Exchange Offer for the Series B Preferred Stock, and (B) (i) 1,188,106 shares of Common Stock, (ii) 950,471 shares of New Preferred Stock, and (iii) 1,425,695 Warrants to purchase the same number of shares of Common Stock in exchange for the shares of Series C Preferred Stock tendered in the Exchange Offer for the Series C Preferred Stock.

In addition, in connection with the petitions (the “Plaintiff Series B Award Motions”) for a court award of attorney’s fees, expenses or other monetary award to be deducted and paid from the Company’s payment of distributions or other payments to the holders of the Company’s Series B Preferred Stock in the matter Curtis J. Timm, et al. v Impac Mortgage Holdings, Inc. et al. (the “Maryland Action”), the Company will deposit, no later than November 2, 2022, approximately (i) 13,311,840 shares of New Preferred Stock and (ii) 4,437,280 shares of the Company’s Common Stock in the custody of a third party custodian or escrow agent (the “Escrow Shares”). The allocation of the Escrow Shares will be made by instruction from the Circuit Court of Baltimore City upon final disposition of all outstanding matters in the Maryland Action, including the Plaintiff Series B Award Motions.

D.F. King & Co., Inc. served as the Information Agent and Solicitation Agent for the Exchange Offers and the accompanying solicitation of consents from the holders of Preferred Stock, and American Stock Transfer & Trust Company, LLC served as the Exchange Agent.

This announcement is for informational purposes only and shall not constitute an offer to purchase or a solicitation of an offer to sell the shares of Preferred Stock, an offer to sell or a solicitation of an offer to buy any shares of the Company’s Common Stock, par value $0.01 per share, warrants to purchase Common Stock, or shares of the Company’s 8.25% Series D Cumulative Redeemable Preferred Stock, par value $0.01 per share, or a solicitation of the related consents. The Exchange Offers were made only through, and pursuant to the terms and conditions set forth in, the Company’s Schedule TO, Prospectus/Consent Solicitation and related Letters of Transmittal and Consents.

Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements, some of which are based on various assumptions and events that are beyond our control, may be identified by reference to a future period or periods or by the use of forward-looking terminology, such as “may,” “capable,” “will,” “intends,” “believe,” “expect,” “likely,” “potentially,” “appear,” “should,” “could,” “seem to,” “anticipate,” “expectations,” “plan,” “ensure,” “desire,” or similar terms or variations on those terms or the negative of those terms. The forward-looking statements are based on current management expectations. Actual results may differ materially as a result of several factors, including, but not limited to the following: acceptance of a plan for regaining compliance with the NYSE American’s listed company standards; impact on the U.S. economy and financial markets due to the outbreak and continued effect of the COVID-19 pandemic; our ability to successfully consummate the contemplated exchange offers for our outstanding preferred stock and receive the requisite consents for the proposed amendments to our charter documents to facilitate the redemption from holders of our outstanding preferred stock who do not participate in the exchange offers; any adverse impact or disruption to the Company’s operations; changes in general economic and financial conditions (including federal monetary policy, interest rate changes, and inflation); increase in interest rates, inflation, and margin compression; ability to successfully sell aggregated loans to third-party investors; successful development, marketing, sale and financing of new and existing financial products, including NonQM products; recruit and hire talent to rebuild our TPO NonQM origination team, and increase NonQM originations; volatility in the mortgage industry; performance of third-party sub-servicers; our ability to manage personnel expenses in relation to mortgage production levels; our ability to successfully use warehousing capacity and satisfy financial covenants; our ability to maintain compliance with the continued listing requirements of the NYSE American for our common stock; increased competition in the mortgage lending industry by larger or more efficient companies; issues and system risks related to our technology; ability to successfully create cost and product efficiencies through new technology including cyber risk and data security risk; more than expected increases in default rates or loss severities and mortgage related losses; ability to obtain additional financing through lending and repurchase facilities, debt or equity funding, strategic relationships or otherwise; the terms of any financing, whether debt or equity, that we do obtain and our expected use of proceeds from any financing; increase in loan repurchase requests and ability to adequately settle repurchase obligations; failure to create brand awareness; the outcome of any claims we are subject to, including any settlements of litigation or regulatory actions pending against us or other legal contingencies; and compliance with applicable local, state and federal laws and regulations.

For a discussion of these and other risks and uncertainties that could cause actual results to differ from those contained in the forward-looking statements, see our latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q we file with the SEC and in particular the discussion of “Risk Factors” therein. This document speaks only as of its date and we do not undertake, and expressly disclaim any obligation, to release publicly the results of any revisions that may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements except as required by law.

About the Company

Impac Mortgage Holdings, Inc. (IMH or Impac) provides innovative mortgage lending and real estate solutions that address the challenges of today’s economic environment. Impac’s operations include mortgage lending, servicing, portfolio loss mitigation, real estate services, and the management of the securitized long-term mortgage portfolio, which includes the residual interests in securitizations.

For additional information, questions or comments, please call Justin Moisio, Chief Administrative Officer at (949) 475-3988 or email Justin.Moisio@ImpacMail.com.

Website: http://ir.impaccompanies.com or www.impaccompanies.com

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Who Gets the Last Word on Steve Jobs? He Might.

Jacqueline Kennedy Onassis meticulously curated the memory of her husband after he was assassinated, reimagining President John F. Kennedy as a fallen King Arthur in a modern-day Camelot.

Now some historians wonder if Laurene Powell Jobs is also trying to frame the legacy of her late husband, Steve Jobs, a complicated and transformational figure who was shadowed by his flaws as a father and belligerence as a boss.

Last month, Ms. Powell Jobs introduced the Steve Jobs Archive. It aspires to reinvent the personal archive much as Mr. Jobs, in his years running Apple, remade music with the iPod and communication with the iPhone.

Rather than offering up a repository of personal correspondence, notes and items for public research and inquiry, as other influential figures have done, Ms. Powell Jobs, who did not respond to requests for comments, said at a conference last month that the Steve Jobs Archive would be devoted to “ideas.” Those ideas are primarily Mr. Jobs’s philosophies about life and work.

Harvard Business School’s 25 greatest business leaders of the 20th century left behind personal archives that are open to the public in libraries or museums, including Henry Ford, Thomas Edison and Asa Candler, who built Coca-Cola.

Other iconic business founders such as Walt Disney, Sam Walton and Ray Kroc entrusted their papers to the companies they built, allowing those collections to become the cornerstone of corporate archives.

Walt Disney Company, make personal correspondence, notes, speeches and other items available to authors for research.

“We don’t censor,” said Becky Cline, director of the Walt Disney archives. “We just vet.”

The new Jobs archive debuted with a minimalist website containing eight pieces of video, audio and writing that express what the archive calls Mr. Jobs’s “driving motivations in his own words.” The items, three-quarters of which were already public, can be accessed by clicking through maxims made famous by Mr. Jobs, including “make something wonderful and put it out there” and “pursue different paths.”

The next steps for the archive are shrouded in the kind of mystery associated with the way Mr. Jobs ran Apple. About all that’s been publicly disclosed is that Ms. Powell Jobs hired a documentary filmmaker to gather hundreds of oral histories about Mr. Jobs from former colleagues. Where that material will be stored and who will have access to it has not been revealed.

She married Mr. Jobs in 1991, two years after meeting him as a graduate student at Stanford. Since his death, she has used her estimated $16 billion fortune to fund the Emerson Collective, a philanthropic and commercial operation that owns The Atlantic magazine and funds an organization trying to reduce gun violence in Chicago.

During his life, Mr. Jobs admired and encouraged historians to preserve the history of his Silicon Valley predecessors such as Robert Noyce, who co-founded the chip maker Intel. But he put little value on his own history, and Apple has seldom commemorated product anniversaries, saying it focuses on the future, not the past.

Stanford spent years cataloging items such as photos of a barefoot Mr. Jobs at work, advertising campaigns and an Apple II computer. That material can be reviewed by students and researchers interested in learning more about the company.

Silicon Valley leaders have a tradition of leaving their material with Stanford, which has collections of letters, slides and notes from William Hewlett, who founded Hewlett-Packard, and Andy Grove, the former chief executive of Intel.

Mr. Lowood said that he uses the Silicon Valley archives to teach students about the value of discovery. “Unlike a book, which is the gospel and all true, a mix of materials in a box introduces uncertainty,” he said.

After Mr. Jobs’ death in 2011, Mr. Isaacson, the author, published a biography of Mr. Jobs. Some at Apple complained that the book, a best seller, misrepresented Mr. Jobs and commercialized his death.

Mr. Isaacson declined to comment about those complaints.

Four years later, the book became the basis for a film. The 2015 movie, written by Aaron Sorkin and starring Michael Fassbender, focused on Mr. Jobs being ousted from Apple and denying paternity of his eldest daughter.

according to emails made public after a hack of Sony Pictures, which held rights to the film. She and others who were close to Mr. Jobs thought any movie based on the book would be inaccurate.

“I was outraged, and he was my friend,” said Mike Slade, a marketing executive who worked as an adviser to Mr. Jobs from 1998 to 2004. “I can’t imagine how outraged Laurene was.”

In November 2015, a month after the movie’s release, Ms. Powell Jobs had representatives register the Steve Jobs Archive as a limited liability company in Delaware and California. She later hired the documentary filmmaker, Davis Guggenheim, to gather oral histories about Mr. Jobs from former colleagues and friends. She also hired Ms. Berlin, who was Stanford’s project historian for its Apple archives, to be the Jobs Archive’s executive director.

Mr. Guggenheim gathered material about Mr. Jobs while also working on a Netflix documentary about Bill Gates, “Inside Bill’s Brain.” Mr. Slade, who worked for both Mr. Jobs and Mr. Gates, said he sat for an interview about one executive, stopped to change shirts and returned to discuss the other one.

Ms. Berlin assisted Ms. Powell Jobs in gathering material. They collected items such as audio of interviews done by reporters and early company records, including a 1976 document that Mr. Jobs and Steve Wozniak, Apple’s co-founder, called their declaration of independence. It outlined what the company would stand for, said Regis McKenna, who unearthed the document in his personal collection gathered during his decades as a pioneer of Silicon Valley marketing and adviser to Mr. Jobs.

Ms. Powell Jobs also assembled a group of advisers to inform what the archive would be, including Tim Cook, Apple’s chief executive; Jony Ive, Apple’s former chief design officer; and Bob Iger, the former chief executive of Walt Disney and a former Apple board member.

Mr. Cook, Mr. Ive and Mr. Iger declined to comment.

Apple, which has its own corporate archive and archivist, is a contributor to the Jobs effort, said Ms. Berlin, who declined to say how she works with the company to gain access to material left by Mr. Jobs.

The archive’s resulting website opens with an email that Mr. Jobs sent himself at Apple. It reads like a journal entry, outlining all the things that he depends on others to provide, from the food he eats to the music he enjoys.

“I love and admire my species, living and dead, and am totally dependent on them for my life and well being,” he wrote.

The email is followed by a previously undisclosed audio clip from a 1984 interview that Mr. Jobs did with Michael Moritz, the journalist turned venture capitalist at Sequoia. During it, Mr. Jobs says that refinement comes from mistakes, a platitude that captures how Apple used trial and error to develop devices.

“It was just lying in the drawer gathering dust,” Mr. Moritz said of the recording.

It’s clear to those who have contributed material that the archive is about safeguarding Mr. Jobs’s legacy. It’s a goal that many of them support.

“There’s so much distortion about who Steve was,” Mr. McKenna said. “There needed to be something more factual.”

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XL Fleet Corp. Receives Notice Regarding NYSE Continued Listing Standard

WIXOM, Mich.–(BUSINESS WIRE)–XL Fleet Corp. (NYSE: XL) (“XL Fleet” or the “Company”), a provider of subscription-based services that make it easy for homeowners and small businesses to own and maintain rooftop solar and battery storage, today announced that on October 20, 2022, it received a notice from the New York Stock Exchange (“NYSE”), notifying the Company that it is out of compliance with the NYSE’s price criteria for continued listing standards because, as of October 19, 2022, the average closing price of the Company’s common stock was less than $1.00 per share over a consecutive 30 trading-day period.

The Company will notify the NYSE of its intent to cure its stock price deficiency within the applicable time period required by the NYSE, and to return to compliance with the NYSE continued listing standard. The Company can regain compliance at any time within the six-month period following receipt of the NYSE notice if on the last trading day of any calendar month during the cure period the Company has a closing share price of at least $1.00 and an average closing share price of at least $1.00 over the 30 trading-day period ending on the last trading day of that month. The Company intends to consider all available alternatives, including, but not limited to, a potential reverse stock split, subject to stockholder approval, no later than at the Company’s next annual meeting of stockholders, if necessary to cure the stock price non-compliance. Under the NYSE’s rules, if the Company determines that it will cure the stock price deficiency by taking an action that will require stockholder approval by no later than its next annual meeting of stockholders and implements the action promptly thereafter, the price condition will be deemed cured if the price promptly exceeds $1.00 per share, and the price remains above that level for at least the following 30 trading days.

The NYSE notification does not affect the Company’s business operations, its Securities and Exchange Commission reporting requirements, credit agreements or other contractual obligations. The Company’s common stock will continue to be listed and traded on the NYSE, subject to its compliance with other NYSE continued listing standards. The Company is currently in compliance with other applicable NYSE continued listing standards.

This press release is issued as required under the NYSE rules. The notice from the NYSE was issued pursuant to Section 802.01C of the NYSE’s Listed Company Manual.

About XL Fleet

XL Fleet provides subscription-based services that make it easy for homeowners and small businesses to own and maintain rooftop solar and battery storage. Our as-a-service model allows consumers to access new technology without making a significant upfront investment or incurring maintenance costs. XL Fleet has more than 52,000 subscribers across the United States. For additional information, please visit www.xlfleet.com.

Forward Looking Statements

Certain statements in this press release may constitute “forward-looking statements” within the meaning of the federal securities laws. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of management and are not predictions of actual performance. Forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements, including but not limited to: the Company’s ability to regain compliance with the continued listing standards of the NYSE within the applicable cure period; the Company’s ability to continue to comply with applicable listing standards of the NYSE; expectations regarding the growth of the solar industry, home electrification, electric vehicles and distributed energy resources; the ability to successfully integrate the Spruce Power acquisition; the ability of XL Fleet to implement its plans, forecasts and other expectations with respect to Spruce Power’s business and realize the expected benefits of the acquisition; the ability to identify and complete future acquisitions; the ability to develop and market new products and services; the effects of pending and future legislation; the highly competitive nature of the Company’s business and markets; litigation, complaints, product liability claims and/or adverse publicity; cost increases or shortages in the components or chassis necessary to support the Company’s products and services; the introduction of new technologies; the impact of the COVID-19 pandemic on the Company’s business, results of operations, financial condition, regulatory compliance and customer experience; the potential loss of certain significant customers; privacy and data protection laws, privacy or data breaches, or the loss of data; general economic, financial, legal, political and business conditions and changes in domestic and foreign markets; the inability to convert its sales opportunity pipeline into binding orders; risks related to the rollout of the Company’s business and the timing of expected business milestones, including the ongoing global microchip shortage and limited availability of chassis from vehicle OEMs and our reliance on our suppliers; the effects of competition on the Company’s future business; the availability of capital; and the other risks discussed under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K filed on March 31, 2022, subsequent Quarterly Reports on Form 10-Q and other documents that the Company files with the SEC in the future. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. These forward-looking statements speak only as of the date hereof and the Company specifically disclaims any obligation to update these forward-looking statements.

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How Credit Suisse Became a Meme Stock

“Credit Suisse is probably going bankrupt.”

It was Saturday, Oct. 1, and Jim Lewis, who frequently posts on Twitter under the moniker Wall Street Silver, made that assertion to his more than 300,000 followers. “Markets are saying it’s insolvent and probably bust. 2008 moment soon?”

Mr. Lewis was among hundreds of people — many of them amateur investors — who had been speculating about the fate of Credit Suisse, the Swiss bank. It was in the middle of a restructuring and had become an easy target after decades of scandals, failed attempts at reform and management upheavals.

There seemed to be no immediate provocation for Mr. Lewis’s weekend tweet other than a memo that Ulrich Körner, the chief executive of Credit Suisse, had sent employees the day before, reassuring them that the bank was in good financial health.

But the tweet, which has been liked more than 11,000 times and retweeted more than 3,000 times, was one of many that helped ignite a firestorm on social media forums like Twitter and Reddit. The rumor that Credit Suisse was in trouble ricocheted around the world, stumping bank executives and forcing them to call shareholders, trading partners and analysts to reassure them that everything was fine before markets reopened on Monday.

prop up the shares of GameStop, the video game retailer, determined to outsmart hedge funds that had bet the company’s shares would fall.

But what started as a spontaneous effort to take down Wall Street has since become an established presence in the market. Millions of amateur investors have embraced trading, including more sophisticated strategies such as shorting. As the Credit Suisse incident shows, their actions highlight a new source of peril for troubled companies.

Founded in Switzerland in 1856 to help finance the expansion of railroads in the tiny European nation, Credit Suisse has two main units — a private wealth management business and an investment bank. However, the bank has often struggled to maintain a pristine reputation.

It has been the repository of funds from businesspeople who are under sanctions, human rights abusers and intelligence officials. The U.S. government has fined it billions of dollars for its role in helping Americans file false tax returns, marketing mortgage-backed securities tied to the 2008 financial crisis and helping customers in Iran, Sudan and elsewhere breach U.S. sanctions.

In the United States, Credit Suisse built its investment banking business through acquisitions, starting with the 1990 purchase of First Boston. But without a core focus, the bank — whose top bosses sit in Switzerland — has often allowed mavericks to pursue new revenue streams and take outsize risks without adequate supervision.

collapsed. Credit Suisse was one of many Wall Street banks that traded with Archegos, the private investment firm of Bill Hwang, a former star money manager. Yet it lost $5.5 billion, far more than its rivals. The bank later admitted that a “fundamental failure of management and controls” had led to the debacle.

surveillance of Credit Suisse executives under his watch. He left the bank in a stable and profitable condition and invested appropriately across its various divisions, his spokesman, Andy Smith, said.

Credit Suisse replaced Mr. Thiam with Thomas Gottstein, a longtime bank executive. When Archegos collapsed, the bank kept Mr. Gottstein on the job, but he started working with a new chairman, António Horta-Osório, who had been appointed a few months earlier to restructure the bank.

resigned after an inquiry into whether he had broken quarantine rules during the pandemic. But he made swift changes in his short tenure. To reduce risk taking, Mr. Horta-Osório said, the bank would close most of its prime brokerage businesses, which involve lending to big trading firms like Archegos. Credit Suisse also lost a big source of revenue as the market for special purpose acquisition companies, or SPACs, cooled.

By July, Credit Suisse had announced its third consecutive quarterly loss. Mr. Gottstein was replaced by Mr. Körner, a veteran of the rival Swiss bank UBS.

Mr. Körner and the chairman, Axel Lehmann, who replaced Mr. Horta-Osório, are expected to unveil a new restructuring plan on Oct. 27 in an effort to convince investors of the bank’s long-term viability and profitability. The stock of Credit Suisse has dipped so much in the past year that its market value — which stood around $12 billion — is comparable to that of a regional U.S. bank, smaller than Fifth Third or Citizens Financial Group.

appeared on Reddit.

Mr. Macleod said he had decided that Credit Suisse was in bad shape after looking at what he deemed the best measure of a bank’s value — the price of its stock relative to its “book value,” or assets minus liabilities. Most Wall Street analysts factor in a broader set of measures.

But “bearing in mind that most followers on Twitter and Reddit are not financial professionals,” he said, “it would have been a wake-up call for them.”

The timing puzzled the bank’s analysts, major investors and risk managers. Credit Suisse had longstanding problems, but no sudden crisis or looming bankruptcy.

Some investors said the Sept. 30 memo sent by Mr. Körner, the bank’s chief executive, reassuring staff that Credit Suisse stood on a “strong capital base and liquidity position” despite recent market gyrations had the opposite effect on stock watchers.

Credit Suisse took the matter seriously. Over the weekend of Oct. 1, bank executives called clients to reassure them that the bank had more than the amount of capital required by regulators. The bigger worry was that talk of a liquidity crisis would become a self-fulfilling prophecy, prompting lenders to pull credit lines and depositors to pull cash, which could drain money from the bank quickly — an extreme and even unlikely scenario given the bank’s strong financial position.

“Banks rely on sentiment,” Mr. Scholtz, the Morningstar analyst, said. “If all depositors want their money back tomorrow, the money isn’t there. It’s the reality of banking. These things can snowball.”

What had snowballed was the volume of trading in Credit Suisse’s stock by small investors, which had roughly doubled from Friday to Monday, according to a gauge of retail activity from Nasdaq Data Link.

Amateur traders who gather on social media can’t trade sophisticated products like credit-default swaps — products that protect against companies’ reneging on their debts. But their speculation drove the price of these swaps past levels reached during the 2008 financial crisis.

Some asset managers said they had discussed the fate of the bank at internal meetings after the meme stock mania that was unleashed in early October. While they saw no immediate risk to Credit Suisse’s solvency, some decided to cut trading with the bank anyway until risks subsided.

In another private message on Twitter, Mr. Lewis declined to speak further about why he had predicted that Credit Suisse would collapse.

“The math and evidence is fairly obvious at this point,” he wrote. “If you disagree, the burden is really on you to support that position.”

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Live Updates: Zelensky Asks G7 Nations for Better Air Defense Systems After Russia Strikes

A top British intelligence official will warn in a speech on Tuesday that while Russia’s aggression has created an urgent threat, China’s expanding use of technology to control dissent and its growing ability to attack satellite systems, control digital currencies and track individuals pose far deeper challenges for the West.

In an interview on Monday ahead of his address, the official, Jeremy Fleming, who heads GCHQ — the British electronic intelligence-gathering and cyber agency made famous for its role in breaking the Enigma codes in World War II — also said he was skeptical about how far China would go to support Russia’s aggression.

“I don’t think that this is a ‘relationship without limits,’” he said, using the term that President Vladimir V. Putin of Russia and President Xi Jinping of China employed when they met at the Beijing Olympics early this year, just before the invasion of Ukraine. In light of Russia’s dismal battlefield performance and its brutality, he said, China “needs to be weighing up the advantages and disadvantage of continuing to align themselves strongly with Russia.”

Mr. Fleming’s agency — formally called Government Communications Headquarters, the counterpart to the National Security Agency in the United States — plays an increasingly central role in tracking Russian communications and preparing for the day when China’s advances in quantum computing may defeat the kinds of encryption used to protect both government and corporate communications.

A three-decade veteran of the British intelligence services, Mr. Fleming rarely speaks in public. But in recent months, several of Britain’s spy chiefs have deliberately taken a carefully crafted public role in describing future security threats.

Mr. Fleming has gone further, detailing the capabilities and rules surrounding Britain’s use of offensive cyber capabilities, which it employed in Syria against terror groups and reportedly against Russian forces in Ukraine, a subject Mr. Fleming declined to discuss.

Yet in the interview, he described Russia as “a disrupter” that was “unpredictable in its actions at the moment.” But he said the performance of Russia’s military had revealed deep weaknesses, and excerpts from his forthcoming speech describe Mr. Putin’s decision-making as “flawed,” its forces as “exhausted” and its reliance on mobilizing 300,000 “inexperienced conscripts” as evidence of Mr. Putin’s “desperate situation.”

“The Russian population has started to understand that, too,” he argued. “They’re seeing just how badly Putin has misjudged the situation.”

He added, “They’re fleeing the draft, knowing their access to modern technologies and external influences will be drastically restricted.”

But Mr. Fleming’s warning is another reminder of the speed at which the Western allies have come to view themselves as in direct competition, and sometimes in conflict, with both of the world’s other major nuclear superpowers. Of the two, he clearly regards Russia as the more manageable.

Until recent years, most European nations have been muted in their public critiques of Beijing and its ambitions, because trade with China became critical to growth, especially for Germany. Britain even permitted Huawei, the Chinese telecommunications giant that the United States fears could pose a security threat, to provide some 5G equipment to Britain’s communications network — under some strict conditions — until sanctions imposed on the company by the United States made that impossible.

Mr. Fleming’s warnings about the strategies behind China’s investment in new technologies, and its effort to create “client economies and governments,” sound much like speeches given by his American counterparts for the past five or more years. But he spoke just before the opening of a Communist Party congress starting in Beijing on Sunday at which Xi Jinping is expected to be named to a third five-year term as the country’s top leader.

Mr. Fleming said that in the case of China, this could be “the sliding-doors moment in history,” in which the United States and its allies may soon discover that they are too far behind in a series of critical technologies to maintain a military or technological edge over Beijing.

He described China’s move to develop central bank digital currencies that could be used to track transactions as a shift that could also “enable China to partially evade the sort of international sanctions currently being applied to Putin’s regime in Russia.” He said that was one example of how China was “learning the lessons” from the war in Ukraine, presumably to apply them if it decided to move against Taiwan and prompted further efforts by the U.S. and its allies to isolate it economically.

Mr. Fleming also described China’s moves to build “a powerful antisatellite capability, with a doctrine of denying other nations access to space in the event of a conflict.” And he accused China of trying to alter international technology standards to ease the tracking of individuals, part of its effort to repress dissent, even the speech of Chinese citizens living abroad.

But his biggest warning surrounded dependence on Chinese companies that are closely linked to the state, or that would have no choice but to turn over data on individuals upon demand by the Chinese authorities. The Huawei experience, he said in the interview, “opened our eyes to the extent to which even the biggest businesses in China are ultimately wrapped up with the Chinese state” and have no choice but to comply “because of the way in which the Communist Party works and the national security laws operate.”

Yet in the Huawei case, the United States and its European partners have yet to offer truly competitive alternatives for much of the company’s networking equipment, officials from many countries say. “We have to be able to provide alternatives,” Mr. Fleming said. When pressed on whether Europe and the United States had provided those alternatives in the years since the campaign against Huawei gained traction, he acknowledged, “No, we don’t.”

Last week, the Biden administration announced sweeping new limits on the sale of semiconductor technology to China, hoping to cripple Beijing’s access to critical technologies that are needed for supercomputers, advanced weapons and artificial intelligence applications.

It was a sign of how fast the world’s two largest economies had become engaged in a clash over technological advantage, with the United States trying to establish a stranglehold on advanced computing and semiconductor technology that China views as essential to its own ambitions.

But Mr. Fleming conceded that over the next few months, he would be focused — as American leaders are — on the question of whether Russia might seek to use a tactical nuclear weapon in Ukraine to make up for its failures on the battlefield.

“This is a concerning moment,” he said. But he noted that Mr. Putin had been cautious and “has been careful not to escalate beyond the borders of Ukraine.”

“He’s been careful not to escalate in terms of the types of weapons they’re using,” he said.

He added: “We’re in a situation where escalation risks are very real.” But if “Putin decided he would make use of tactical nuclear weapons,” he said, it would be a “complete departure” from his past action and from Russian military doctrine.

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Engine parts makers must cross ‘valley of death’ to reach EV era

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KIDDERMINSTER, England, Oct 5 (Reuters) – Auto engine parts makers eyeing the promising electric-vehicle market are dealing with a severe case of delayed gratification.

Until EVs truly take off, engine parts makers face a perilous few years where they must invest heavily in new machinery, while struggling with falling sales of fossil-fuel cars.

Evtec Aluminium, a small supplier with two plants in England, is a case in point. It barely survived.

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Within the last decade in the European Union – when Britain was still a member – diesel was the green fuel of the future. Carmakers, including Evtec’s main customer Tata Motors (TAMO.NS)-owned Jaguar Land Rover (JLR), invested tens of billions of dollars in new diesel models and production capacity.

Suppliers followed suit. Evtec, then known as Liberty Aluminium, invested tens of millions of pounds in new machines, some of which sit idle but are still being paid off.

Then the EU, spurred on in part by Volkswagen’s (VOWG_p.DE) “Dieselgate” emissions cheating scandal, swiftly abandoned diesel in favour of EVs and now plans to effectively ban combustion-engine car sales by 2035.

“We went in thinking diesel is the future,” said Evtec’s business director, Brett Parker, on a tour of the company’s half-empty foundry in Kidderminster in England’s Midlands, the historical heart of Britain’s car industry. “We backed the wrong horse, unfortunately.”

Evtec was saved last year when a group led by investor David Roberts bought it. Roberts says Evtec’s foundry in Kidderminster is Britain’s most modern – vast machines here pump molten aluminium heated to around 660 degrees Celsius (1,220°F) into castings to make complex shapes – and stands to benefit as UK carmakers look to build EVs that need aluminium parts.

“For me it was a no-brainer to invest in that business,” Roberts said.

As recently as 2015, diesel made up nearly 52% of EU car sales. After Dieselgate and the shift in favor of EVs, diesel fell to 19.6% of EU sales in 2021 and has fallen further this year. In Britain, diesel car sales halved to just 8.2% in 2021.

Petrol car sales in the EU declined to around 40% in 2021 from over 45% in 2015 and will fall further as Europe goes electric.

Major engine parts suppliers like Vitesco Technologies Group AG (VTSCn.DE) and Schaeffler (SHA_p.DE) are already investing in transitioning to electric, but smaller players like Evtec – for which tracking data is not widely available – must adapt or die.

“Engine parts makers are ground zero for the most amount of pain in this transition because they have the least amount of portability into EV world,” said Mark Wakefield, global co-leader of consultancy AlixPartners’ automotive and industrial practice.

Some major carmakers have warned of huge job losses, as EV motors have only a third of the parts of a combustion engine and require less labour.

Fewer parts also mean fewer suppliers.

Engine parts suppliers must either transform into an EV-focused business, or diversify into other industries making parts for anything from heavy equipment to hair dryers.

Or go out of business.

“People have to realize this transition comes at a cost,” Evtec investor Roberts said. “We all have our own valley of death to get to EVs, but for some suppliers it will be so much harder.”

‘CAN’T GROW WITHOUT MONEY’

Declining combustion-engine car sales have already cost jobs.

World No. 4 carmaker Stellantis NV (STLA.MI), for instance, is shifting its plant in Tremery, France – long the world’s largest diesel engine plant – over to EV motors.

Tremery employs 2,400 people now, down from 3,000 in 2019. Many others will not be replaced when they retire.

German supplier Bosch (ROBG.UL) is transforming its plant in Rodez in southern France away from diesel injectors to new products including hydrogen fuel cells, cutting 750 of 1,250 jobs.

Auto industry consultant Bernd Bohr said larger, deep-pocketed suppliers will likely be the “last man standing” for delivering a particular part.

“A lot of companies are fighting for a piece of a smaller and smaller cake and the question is, who’s getting that volume?” he said.

Powertrain supplier Vitesco is focused on combustion engines, but by 2030 the company expects EVs will account for 70% of sales.

In January, the German supplier will split its business into two main divisions, one focused on EV components and the other on higher-value technology that can also be used in combustion engines to bring in cash as that business winds down.

Some parts of the business no longer considered to be core will be shut down or sold off.

“We have to generate the necessary funds so we can invest in the future,” Vitesco CEO Andreas Wolf said. “I can’t grow without money.”

Parts supplier Schaeffler expects its future EV business will be smaller than today’s combustion-engine sales, so the German company is focused on diversifying its customer base.

For instance, the ball bearings Schaeffler sells to carmakers could be sold to other industries.

‘OTHERS WILL DROP OUT’

Smaller suppliers are already struggling with soaring raw material and energy costs, plus the need to invest in greener products to meet carmakers’ climate goals.

Funding new equipment for EV parts could be tough.

Evtec’s investor Roberts said the company has around 330 million pounds’ worth ($363.8 million) of business lined up for EV parts for JLR over a seven-year contract, plus around another 250 million pounds with other carmakers.

But because of long auto industry lead times, the models in those contracts will not start production for two to three years.

Evtec must spend up to 70 million pounds for new tools and machines for those contracts, of which Roberts will pay half, long before any revenue comes in.

Evtec also has support from JLR, which considers it a strategic supplier.

“Our suppliers play a pivotal role in our transformation,” a JLR spokesperson said. “We are working closely with them during the automotive industry’s transition … to electrification.”

AlixPartners estimates carmakers have committed $526 billion to go electric and if they do not proactively address supplier problems they could end up spending another $70 billion to fix them.

Suppliers making key components could get rescued, but carmakers cannot afford too many bailouts, Wakefield said.

Evtec’s Parker said with an investor backing its transition, in the short term the company is looking to “plug the gaps” in revenue.

Earlier this year, when an Israeli supplier folded, Evtec took over some of its business. As suppliers struggle after two years of pandemic, supply shocks and inflation, Parker expects more such opportunities.

“If you can hang on long enough, others will potentially drop out,” Parker said. “Then you’ve got more chance of picking up business.”

($1 = 0.9070 pound)

(This story has been corrected to fix paragraph 27 and 28 to remove reference to third division )

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Reporting by Nick Carey in Kidderminster, England, and Christina Amann in Berlin
Additional reporting by Gilles Guillaume in Paris
Editing by Ben Klayman and Matthew Lewis

Our Standards: The Thomson Reuters Trust Principles.

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Xome Appoints Chief Technology Officer

DALLAS–(BUSINESS WIRE)–Xome® announced today it has appointed James Curl as Senior Vice President and Chief Technology Officer. Curl brings more than 15 years of experience leading technology and innovation teams at major organizations such as T-Mobile and Deloitte, where he oversaw large scale digital transformation initiatives.

Curl will lead the Xome enterprise-wide technology team and initiatives to create and source transformative technology solutions that will continue to build upon the company’s strong foundation.

“We are thrilled to have James join the Xome team to continue growing our technology platforms and better serve both our customers and team members,” said Mike Rawls, CEO, Xome. “We are confident his wealth of experience and proven track record of leading teams will strengthen our technology solutions and further our culture of innovation.”

Prior to joining Xome, Curl served as Vice President of Enterprise and Emerging Technology at T-Mobile, where he led cross functional teams of product managers and engineers to deliver market shaping technology products including T-Mobile’s consumer home internet. Curl also led the technology shared service functions at T-Mobile including enterprise architecture, portfolio management and solution delivery. Prior to his time at T-Mobile, Curl worked at Deloitte Consulting in the technology strategy and architecture service area, where he led major technology implementations for clients. Curl holds a bachelor’s degree in computer engineering from Texas A&M University.

“I am excited to join Xome’s tech-forward and digitally focused team, and I look forward to supporting the company’s best-in-class auction platform as we continue to propel Xome to the forefront of the industry,” said Curl.

About Xome

Xome Holdings LLC is a premier asset management company with a best-in-class auction platform providing mortgage servicers end-to-end asset marketing and disposition strategies, recapture solutions and real estate and data services. Based in the Dallas area, Xome is an indirect wholly-owned subsidiary of Mr. Cooper Group Inc. (NASDAQ: COOP). For more information, please visit www.xome.com.

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Fintech Executive Jerry Halbrook Joins Pennymac’s Leadership Team as Chief Mortgage Innovation Officer

WESTLAKE VILLAGE, Calif.–(BUSINESS WIRE)–PennyMac Financial Services, Inc. (NYSE: PFSI) (Pennymac) announced today the appointment of Jerry Halbrook as the organization’s Chief Mortgage Innovation Officer. With decades of Fintech experience, Mr. Halbrook will develop and launch new technology solutions, preparing the company for future innovations while enhancing Pennymac’s business model.

“Pennymac welcomes Jerry and his extensive expertise as we continue to make significant strides towards building the future of technology in the mortgage banking industry,” said Doug Jones, President and Chief Mortgage Banking Officer at Pennymac. “Jerry is a proven leader who will accelerate Pennymac’s growth in sectors where our industry is moving – especially in today’s competitive and volatile market.”

With over 40 years of experience, Mr. Halbrook has held senior roles working for top 10 mortgage lenders as well as boutique and large Fintech companies. Mr. Halbrook has led multiple companies in their development, adoption and implementation of new technology platforms. Most recently, Mr. Halbrook was the Chief Executive Officer of Volly, a Fintech company that offers a full suite of technology solutions related to the mortgage and real estate industry.

“We live in a rapidly evolving digital world where customers’ needs are changing. I look forward to working with the immensely talented leadership team at Pennymac to provide technology that allows our partners, like correspondent lenders and brokers, to leverage these solutions for the benefit of their customers,” said Jerry Halbrook, Chief Mortgage Innovation Officer at Pennymac. “It is an honor to join a team that inspires industry-leading innovations focused on delivering a superior customer experience.”

Since its founding in 2008, Pennymac has transformed how the mortgage industry thinks about homeownership and serviced more than $1 trillion in loans for over 4 million homeowners. As one of the largest lenders in the country, Pennymac originates and makes a permanent capital investment to service the loans, and is uniquely positioned to be a lifetime partner to its customers. For more information about Pennymac, please visit https://www.pennymac.com/.

About PennyMac Financial Services, Inc.

PennyMac Financial Services, Inc. is a specialty financial services firm focused on the production and servicing of U.S. mortgage loans and the management of investments related to the U.S. mortgage market. Founded in 2008, the company is recognized as a leader in the U.S. residential mortgage industry and employs over 4,800 people across the country. For the twelve months ended June 30, 2022, PennyMac Financial’s production of newly originated loans totaled $166 billion in unpaid principal balance, making it the fourth largest mortgage lender in the nation. As of June 30, 2022, PennyMac Financial serviced loans totaling $527 billion in unpaid principal balance, making it a top ten mortgage servicer in the nation. Additional information about PennyMac Financial Services, Inc. is available at ir.pennymacfinancial.com.

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CorpHousing Group Inc. Announces 2022 Second Quarter Financial Results

MIAMI–(BUSINESS WIRE)–CorpHousing Group Inc. (“CorpHousing,” “CHG”, or the “Company”) (Nasdaq: CHG), which utilizes a long-term lease, asset-light business model to acquire and manage a growing portfolio of short-term rental properties in major metropolitan cities, today announced financial results for the second quarter (“Q2 2022”) and six months ended June 30, 2022.

2022 Second Quarter Financial Overview Compared to 2021 Second Quarter

2022 Six Months Financial Overview Compared to 2021 Six Months

Operational Highlights

“We are excited to announce our Q2 results, which we believe reflect the success of our asset-light business model, the vibrancy of our target markers, and the opportunities inherent in our industry,” said Brian Ferdinand, Chairman and Chief Executive Officer of CorpHousing Group. “Q2 2022 net rental revenue increased by 144%, gross profit increased 19-fold, net income improved by $1.9 million, and EBITDA for the quarter was $2.1 million. Our available units for rent increased quarter over quarter, occupancy rates improved as the effects of COVID pandemic wane, and we realized certain efficiencies from scale.

“We currently operate hotels under long-term lease agreements in Boston, Denver, Los Angeles, greater Miami, New York City, Washington, DC, and Seattle, and will commence operations in New Orleans in mid-October.

We are in various stages of negotiation with a variety of potential partners that represent thousands of additional hotel units in destination locations across the United States and Europe. We believe that we are creating win-win opportunities by providing property owners the ability to create stable cash flow streams to maximize returns on their properties, which have been significantly impacted by restrictions on travel and leisure activities due to the COVID-19 pandemic. CHG then markets these units under our customer facing LuxUrbanTM brand to increase occupancy rates and drive operational efficiencies, thus creating the opportunity to generate high margin, recurring and predictable revenue streams. Supported by a strengthened balance sheet and seasoned team of executives, we believe that are well positioned to advance our highly scalable, predictable, and profitable business model and look forward to our future with confidence.”

Q2 2022 Overview

Net rental revenue in Q2 2022 increased 144% to $10.2 million from $4.2 million in the second quarter ended June 30, 2021 (“Q2 2021”), driven primarily by an increase in average units available to rent from 376 in Q2 2021 to 565 at Q2 2022, as well as better occupancy rates and average daily rates (“ADRs”) over this period.

Cost of revenue, which includes rental expenses for available units to rent, rose to $7.3 million in Q2 2022 from $4.0 million in Q2 2021, due primarily to the increase in size of CHG’s rental unit portfolio, as well as related increases in furniture rentals, cleaning costs, cable / WIFI costs and credit card processing fees.

Gross profit improved to $2.9 million, or 28% of net rental revenue, from $0.1 million, or 3.5% of net rental revenue. Higher gross profit and gross margin was primarily attributable to a reduction in the impact of COVID-19 on our operations, higher unit counts and better occupancy rates and ADRs.

Total general and administrative expenses in Q2 2022 increased to $0.9 million, or 9% of net rental revenue, from $0.7 million, or 18% of net rental revenue, in Q2 2021, attributable to an increased number of units in operation.

Income before provision for income taxes improved to $1.5 million from a loss of $(1.1) million, reflecting a significant increase in net rental revenue in Q2 2022 compared to Q2 2021 and the benefits of scale-driven operating efficiencies.

Net income improved to $0.8 million, or $0.04 per diluted share, compared to a net loss of $(1.1) million.

EBITDA rose to $2.1 million, or 21% of net rental revenue, in Q2 2022 compared to negative EBITDA of $(0.6) million.

For a discussion of the financial measures presented herein which are not calculated or presented in accordance with U.S. generally accepted accounting principles (“GAAP”), see “Note Regarding Use of Non-GAAP Financial Measures” below and the schedules to this press release for additional information and reconciliations of non-GAAP financial measures. The company presents non-GAAP measures such as EBITDA to assist in an analysis of its business. These non-GAAP measures should not be considered an alternative to GAAP measures as an indicator of the company’s operating performance.

Conference Call and Webcast

The Company will host a conference call on Tuesday, September 27, 2022 at 9:00 am Eastern Time to discuss the results.

Investors interested in participating in the live call can dial:

A webcast of the event may be accessed via the following link: https://event.choruscall.com/mediaframe/webcast.html?webcastid=ltKz5SSV.

CorpHousing Group Inc.

CorpHousing Group (CHG) utilizes a long-term lease, asset-light business model to acquire and manage a growing portfolio of short-term rental properties in major metropolitan cities. The Company’s future growth focuses primarily on seeking to create “win-win” opportunities for owners of dislocated hotels, including those impacted by COVID-19 travel restrictions, while providing CHG favorable operating margins. CHG operates these properties in a cost-effective manner by leveraging technology to identify, acquire, manage, and market them globally to business and vacation travelers through dozens of third-party sales and distribution channels, and the Company’s own online portal. Guests at the Company’s properties are provided Heroic Service™ under CHG’s consumer brands, including LuxUrban. CHG’s Heroic ServiceTM provides guests a hassle-free experience which exceeds their expectations with “Heroes” who respond to any issue in a timely, thoughtful, and thorough manner.

Forward Looking Statements

This press release contains forward-looking statements, including with respect to the expected closing of noted lease transactions and continued closing on additional leases for properties in the Company’s pipeline, as well the Company’s anticipated ability to commercialize efficiently and profitably the properties it leases and will lease in the future. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including those set forth under the caption “Risk Factors” in the prospectus forming part of the Company’s effective Registration Statement on Form S-1 (File No. 333-262114). Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “will continue”, “will occur” or “will be achieved”. Forward-looking information may relate to anticipated events or results including, but not limited to business strategy, leasing terms, high-level occupancy rates, and sales and growth plans. The financial projection provided herein are based on certain assumptions and existing and anticipated market, travel and public health conditions, all of which may change. The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws.

The Company seeks to achieve profitable, long-term growth by monitoring and analyzing key operating metrics, including EBITDA. The Company defines EBITDA as net income before interest, taxes, and depreciation. The Company’s management uses this non-GAAP financial metric and related computations to evaluate and manage the business and to plan and make near and long-term operating and strategic decisions. The management team believes this non-GAAP financial metric is useful to investors to provide supplemental information in addition to the GAAP financial results. Management reviews the use of its primary key operating metrics from time-to-time. EBITDA is not intended to be a substitute for any GAAP financial measure and as calculated, may not be comparable to similarly titled measures of performance of other companies in other industries or within the same industry. The Company’s management team believes it is useful to provide investors with the same financial information that it uses internally to make comparisons of historical operating results, identify trends in underlying operating results, and evaluate its business.

A reconciliation of net income to EBITDA will be provided in the company’s Quarterly Report on Form 10-Q for the three and six months ended June 30, 2022 to be filed on September 26, 2022, under the section thereof entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Reconciliation of Unaudited Historical Results to EBITDA.”

Condensed Consolidated Balance Sheet

(Unaudited)

 

 

 

(unaudited)

 

 

 

 

June 30,

 

December 31,

 

 

2022

 

2021

ASSETS

 

 

 

 

 

 

Current Assets

 

 

 

 

 

 

Cash

 

$

556

 

 

$

6,998

 

Processor retained funds

 

 

4,616,255

 

 

 

56,864

 

Prepaid expenses and other current assets

 

 

512,939

 

 

 

166,667

 

Deferred offering costs

 

 

1,234,500

 

 

 

771,954

 

Security deposits – current

 

 

276,943

 

 

 

276,943

 

Total Current Assets

 

$

6,641,193

 

 

$

1,279,426

 

Other Assets

 

 

 

 

 

 

Furniture and equipment, net

 

 

8,944

 

 

 

11,500

 

Restricted cash

 

 

1,100,000

 

 

 

1,100,000

 

Security deposits – noncurrent

 

 

4,108,010

 

 

 

1,377,010

 

Operating lease right-of-use asset, net

 

 

49,941,971

 

 

 

 

Total Other Assets

 

 

55,158,925

 

 

 

2,488,510

 

Total Assets

 

$

61,800,118

 

 

$

3,767,936

 

LIABILITIES AND STOCKHOLDERS’ DEFICIT

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

Accounts payable and accrued expenses

 

$

5,301,053

 

 

$

4,209,366

 

Rents received in advance

 

 

4,071,095

 

 

 

1,819,943

 

Merchant cash advances – net of unamortized costs of $0 and $57,768, respectively

 

 

575,489

 

 

 

1,386,008

 

Loans payable – current portion

 

 

2,780,054

 

 

 

1,267,004

 

Loans payable – SBA – PPP Loan – current portion

 

 

815,183

 

 

 

815,183

 

Convertible loans payable – related parties – current portion

 

 

2,596,865

 

 

 

 

Loans payable – related parties – current portion

 

 

1,071,128

 

 

 

22,221

 

Operating lease liability – current

 

 

7,182,381

 

 

 

 

Income taxes payable

 

 

750,000

 

 

 

 

Total Current Liabilities

 

 

25,143,248

 

 

 

9,519,725

 

Long-Term Liabilities

 

 

 

 

 

 

Loans payable

 

 

545,789

 

 

 

925,114

 

Loans payable – SBA – EIDL Loan

 

 

800,000

 

 

 

800,000

 

Loans payable – related parties

 

 

 

 

 

496,500

 

Convertible loans payable – related parties

 

 

700,195

 

 

 

2,608,860

 

Line of credit

 

 

94,975

 

 

 

94,975

 

Deferred rent

 

 

 

 

 

536,812

 

Operating lease liability

 

 

43,962,492

 

 

 

 

Total Long-term Liabilities

 

 

46,103,451

 

 

 

5,462,261

 

Total Liabilities

 

 

71,246,699

 

 

 

14,981,986

 

Commitments and Contingencies

 

 

 

 

 

 

Stockholders’ Deficit

 

 

 

 

 

 

Members’ Deficit

 

 

 

 

 

(11,214,050

)

Common stock (shares authorized, issued and outstanding – 90,000,000; 21,675,001; 21,675,001; respectively)

 

 

216

 

 

 

 

Accumulated deficit

 

 

(9,446,797

)

 

 

 

Total Stockholders’ Deficit

 

 

(9,446,581

)

 

 

(11,214,050

)

Total Liabilities and Stockholders’ Deficit

 

$

61,800,118

 

 

$

3,767,936

 

Condensed Consolidated Statement of Operations

(Unaudited)

 

 

 

For the Three Months Ended

 

For the Six Months Ended

 

 

June 30, 2022

 

June 30, 2021

 

June 30, 2022

 

June 30, 2021

Rental Revenue

 

$

12,656,540

 

 

$

6,728,686

 

 

$

24,419,439

 

 

$

11,688,873

 

Refunds and Allowances

 

 

2,455,202

 

 

 

2,545,820

 

 

 

5,118,676

 

 

 

4,199,978

 

Net Rental Revenue

 

 

10,201,338

 

 

 

4,182,866

 

 

 

19,300,763

 

 

 

7,488,895

 

Cost of Revenue

 

 

7,344,720

 

 

 

4,035,238

 

 

 

13,930,882

 

 

 

7,920,531

 

Gross Profit (Loss)

 

 

2,856,618

 

 

 

147,628

 

 

 

5,369,881

 

 

 

(431,636

)

General and Administrative Expenses

 

 

 

 

 

 

 

 

 

 

 

 

Administrative and other

 

 

809,121

 

 

 

701,040

 

 

 

1,559,742

 

 

 

1,258,458

 

Professional fees

 

 

76,500

 

 

 

37,390

 

 

 

305,485

 

 

 

90,404

 

Total General and Administrative Expenses

 

 

885,621

 

 

 

738,430

 

 

 

1,865,227

 

 

 

1,348,862

 

Net Income (Loss) Before Other Income (Expense)

 

 

1,970,997

 

 

 

(590,802

)

 

 

3,504,654

 

 

 

(1,780,498

)

Other Income (Expense)

 

 

 

 

 

 

 

 

 

 

 

 

Other income

 

 

137,154

 

 

 

434

 

 

 

587,067

 

 

 

467

 

Interest and financing costs

 

 

(595,742

)

 

 

(542,764

)

 

 

(1,159,879

)

 

 

(660,007

)

Total Other Expenses

 

 

(458,588

)

 

 

(542,330

)

 

 

(572,812

)

 

 

(659,540

)

Income (Loss) Before Provision for Income Taxes

 

 

1,512,409

 

 

 

(1,133,132

)

 

 

2,931,842

 

 

 

(2,440,038

)

Provision for Income Taxes

 

 

 

 

 

 

 

 

 

 

 

 

Current

 

 

750,000

 

 

 

 

 

 

750,000

 

 

 

 

Net Income (Loss)

 

$

762,409

 

 

$

(1,133,132

)

 

$

2,181,842

 

 

$

(2,440,038

)

Basic and diluted earnings per common share

 

$

0.04

 

 

$

 

 

$

0.10

 

 

$

 

Basic and diluted weighted average number of common shares outstanding

 

 

21,675,001

 

 

 

 

 

 

21,315,747

 

 

 

 

Non-GAAP Financial Measures

To supplement the condensed consolidate financial statements, which are prepared in accordance with GAAP, we use EBITDA as a non-GAAP financial measure.

The following table provides reconciliation of net income (loss) to EBITDA:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, (unaudited)

 

Six Months Ended June 30, (unaudited)

 

 

2022

 

2021

 

2022

 

2021

Net Income (loss)

 

$

762,409

 

$

(1,133,132

)

 

$

2,181,842

 

$

(2,440,038

)

Provision for Income Taxes

 

$

750,000

 

$

 

 

$

750,000

 

$

 

Interest and Financing cost

 

$

595,742

 

$

542,764

 

 

$

1,159,879

 

$

660,007

 

Depreciation Expense

 

$

 

$

 

 

$

2,556

 

$

 

EBITDA

 

$

2,108,151

 

$

(590,368

)

 

$

4,094,277

 

$

(1,780,031

)

EBITDA is defined as net income or loss before the impact of interest, taxes and depreciation and amortization. EBITDA is a key measure of our financial performance and measures our efficiency and operating cash flow before financing costs, taxes and working capital needs. We utilize EBITDA because it provides us with an operating metric closely tied to the operations of the business.

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