Hubilu Venture Corp Swings to Loss Amid Rising Interest Costs

Ticker: HBUV · Form: 10-Q · Filed: Nov 17, 2025 · CIK: 1639068

Sentiment: bearish

Topics: Real Estate, Net Loss, Going Concern, High Debt, Property Acquisitions, Financial Risk, Small Cap

TL;DR

**HBUV is bleeding cash with rising debt and falling revenue; steer clear until they prove they can turn a profit.**

AI Summary

Hubilu Venture Corp (HBUV) reported a net loss of $450,373 for the nine months ended September 30, 2025, a significant decline from a net income of $3,785 in the prior year period. This was primarily driven by a substantial increase in interest expense, which rose to $1,084,202 from $828,461. Rental revenue also decreased slightly to $1,588,731 for the nine months ended September 30, 2025, compared to $1,666,452 in the same period of 2024. The company's total assets increased to $23,597,019 as of September 30, 2025, from $20,941,585 at December 31, 2024, largely due to real estate acquisitions. Specifically, Hubilu acquired properties at 417 W 52nd Place for $525,000 and 1460 Exposition Blvd for $520,000 in Q3 2025, financed by new mortgages. Despite these acquisitions, the company faces a going concern risk due to recurring losses, an accumulated deficit of $2,757,513, and negative working capital of $2,194,095. Management is focused on increasing occupancy rates and seeking additional capital to achieve profitability.

Why It Matters

Hubilu Venture Corp's shift to a significant net loss and its going concern warning are critical for investors, signaling potential instability and a high-risk investment. The company's strategy of acquiring new properties, such as 417 W 52nd Place and 1460 Exposition Blvd, while facing declining rental revenue and soaring interest expenses, suggests a challenging path to profitability. This financial strain could impact employees through potential operational cutbacks and customers if property maintenance or services are affected. In a competitive Los Angeles real estate market, Hubilu's financial health and ability to secure additional capital will determine its long-term viability and ability to compete with more established real estate firms.

Risk Assessment

Risk Level: high — Hubilu Venture Corp has an accumulated deficit of $2,757,513 and negative working capital of $2,194,095 as of September 30, 2025. The company also reported a net loss of $450,373 for the nine months ended September 30, 2025, compared to a net income of $3,785 in the prior year, indicating recurring operational losses that raise substantial doubt about its ability to continue as a going concern.

Analyst Insight

Investors should exercise extreme caution and consider avoiding HBUV given the significant net losses, negative working capital, and explicit going concern warning. Monitor future filings for concrete evidence of increased occupancy rates and successful capital raises before considering any investment.

Financial Highlights

debt To Equity
N/A
revenue
$1,588,731
operating Margin
40.00%
total Assets
$23,597,019
total Debt
$25,293,715
net Income
-$450,373
eps
N/A
gross Margin
N/A
cash Position
$107,252
revenue Growth
-4.66%

Revenue Breakdown

SegmentRevenueGrowth
Rental Revenue$1,588,731-4.66%

Key Numbers

Key Players & Entities

FAQ

What were Hubilu Venture Corp's key financial results for the nine months ended September 30, 2025?

Hubilu Venture Corp reported a net loss of $450,373 for the nine months ended September 30, 2025, a significant decrease from a net income of $3,785 in the prior year. Rental revenue was $1,588,731, down from $1,666,452, while interest expense surged to $1,084,202.

Why is Hubilu Venture Corp facing a 'going concern' issue?

Hubilu Venture Corp is facing a 'going concern' issue due to recurring operational losses, an accumulated deficit of $2,757,513, and negative working capital of $2,194,095 as of September 30, 2025. These factors indicate that the company may not have sufficient resources to sustain operations.

What is Hubilu Venture Corp's strategy to address its financial challenges?

Management for Hubilu Venture Corp is actively working to increase occupancy rates in its properties to boost revenues. Additionally, the company is seeking additional sources of capital to fund its short-term operations and achieve profitability.

How did Hubilu Venture Corp's real estate portfolio change in Q3 2025?

In Q3 2025, Hubilu Venture Corp, through its subsidiary Elata Investments, LLC, acquired two new properties in Los Angeles: 417 W 52nd Place for $525,000 on August 14, 2025, and 1460 Exposition Blvd for $520,000 on September 24, 2025. Both properties were vacant at the time of purchase.

What was the impact of interest expense on Hubilu Venture Corp's profitability?

Interest expense significantly impacted Hubilu Venture Corp's profitability, increasing to $1,084,202 for the nine months ended September 30, 2025, from $828,461 in the same period of 2024. This rise contributed substantially to the company's net loss.

What are the total assets and liabilities for Hubilu Venture Corp as of September 30, 2025?

As of September 30, 2025, Hubilu Venture Corp reported total assets of $23,597,019. Total liabilities stood at $25,293,715, indicating that liabilities exceed assets, contributing to the negative stockholders' equity.

What is the nature of Hubilu Venture Corp's business?

Hubilu Venture Corp is a real estate consulting, asset management, and business acquisition company. It specializes in acquiring student housing and corporate income properties, as well as development/business opportunities, primarily located near Los Angeles Metro/subway stations and within the Los Angeles area.

How many shares of common stock does Hubilu Venture Corp have outstanding?

As of November 14, 2025, Hubilu Venture Corp had 26,237,125 shares of its common stock, with a $0.001 par value per share, issued and outstanding.

What was the net cash provided by operating activities for Hubilu Venture Corp?

For the nine months ended September 30, 2025, Hubilu Venture Corp reported net cash provided by operating activities of $53,715, a decrease from $354,703 in the same period of 2024.

What is the primary risk for investors in Hubilu Venture Corp?

The primary risk for investors in Hubilu Venture Corp is the substantial doubt about its ability to continue as a going concern, evidenced by recurring losses, a large accumulated deficit, and negative working capital. This indicates a high risk of financial distress or potential bankruptcy.

Risk Factors

Industry Context

Hubilu Venture Corp operates in the real estate sector, specifically focusing on rental properties. The industry is sensitive to interest rate fluctuations, occupancy rates, and local market conditions. Companies in this space often rely on debt financing for property acquisitions, making interest expense a critical factor in profitability. The current environment may present challenges in maintaining rental revenue and managing rising financing costs.

Regulatory Implications

As a publicly traded company, Hubilu Venture Corp is subject to SEC regulations and reporting requirements. The disclosure of going concern risk is a critical regulatory requirement that signals potential financial distress to investors and creditors. Compliance with accounting standards and timely filing of financial reports are essential.

What Investors Should Do

  1. Monitor occupancy rates and rental income trends closely.
  2. Evaluate the company's ability to secure additional capital.
  3. Assess the impact of rising interest rates on debt servicing.
  4. Understand the strategy behind recent property acquisitions.

Key Dates

Glossary

Accumulated Deficit
The total cumulative net losses of a company that have not been offset by net income. It represents a negative balance in retained earnings. (Indicates that Hubilu Venture Corp has historically incurred more losses than profits, impacting its overall financial health and equity.)
Working Capital
The difference between a company's current assets and current liabilities. Positive working capital indicates a company can meet its short-term obligations. (Hubilu Venture Corp has negative working capital ($2,194,095), suggesting potential difficulties in meeting its short-term financial obligations.)
Going Concern
An accounting assumption that a business will continue to operate for the foreseeable future. If there is substantial doubt about this, it must be disclosed. (The company's recurring losses and negative financial indicators raise substantial doubt about its ability to continue as a going concern.)
Net Operating Income
Profitability derived from a company's normal business operations, before accounting for interest and taxes. (While the company's net operating income was $634,482 for the nine months, significant interest expenses turned this into a net loss.)
Debt Discounts
A reduction in the carrying amount of debt, typically arising from the issuance of debt at an effective interest rate higher than the stated coupon rate. (The 'net of debt discounts' in mortgages payable suggests that the actual cash received for these loans was less than their face value, or that the effective interest rate is higher.)

Year-Over-Year Comparison

For the nine months ended September 30, 2025, Hubilu Venture Corp has seen a significant deterioration in its financial performance compared to the prior year. Net income has swung from a small profit of $3,785 to a substantial net loss of $450,373. This is primarily driven by a sharp increase in interest expense, which rose by over $255,000. Rental revenue also experienced a slight decline of approximately 4.66%. The company's total assets have grown due to real estate acquisitions, but this has been accompanied by a substantial increase in total liabilities, leading to heightened financial risk and negative working capital.

Filing Stats: 4,431 words · 18 min read · ~15 pages · Grade level 15.9 · Accepted 2025-11-17 06:28:49

Filing Documents

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION 3

Financial Statements

Item 1. Financial Statements 3 Condensed Consolidated Balance Sheets as of September 30, 2025 (Unaudited) and December 31, 2024 3 Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2025 and 2024 (Unaudited) 4 Condensed Consolidated Statements of Changes in Stockholders' Equity (Deficit) for the Three and Nine Months Ended September 30, 2025 and 2024 (Unaudited) 5 Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2025 and 2024 (Unaudited) 6 Notes to Condensed Consolidated Financial Statements (Unaudited) 7

Management's Discussion and Analysis of Financial Conditions and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Conditions and Results of Operations 18

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 24

Controls and Procedures

Item 4. Controls and Procedures 24

— OTHER INFORMATION

PART II — OTHER INFORMATION 25

Legal Proceedings

Item 1. Legal Proceedings 25

Risk Factors

Item 1A. Risk Factors 25

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 25

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 25

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 25

Other Information

Item 5. Other Information 25

Exhibits

Item 6. Exhibits 26

– FINANCIAL

Part I – FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements HUBILU VENTURE CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS September 30, December 31, 2025 2024 (Unaudited) ASSETS Current assets: Cash 107,252 9,799 Accounts receivable 33,206 4,463 Total current assets 140,458 14,262 Real estate: Land 15,887,177 14,547,789 Building and capital improvements 8,714,292 7,326,066 Less: accumulated depreciation ( 1,151,508 ) ( 953,132 ) Total real estate, net 23,449,961 20,920,723 Security deposits 6,600 6,600 Total assets 23,597,019 20,941,585 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) Current liabilities: Accounts payable 9,695 4,982 Advanced rents received 31,439 27,875 Accrued interest 195,146 87,366 Security deposits payable 205,043 96,440 Due to related party, current maturities 474,271 474,271 Mortgages payable, net of debt discounts, current maturities 1,194,068 1,700,440 Dividends payable 224,891 205,483 Total current liabilities 2,334,553 2,596,857 Mortgages payable, related party 1,017,094 599,594 Mortgages payable, net of debt discounts 21,421,668 18,511,358 Convertible preferred stock payable 520,400 520,400 Total liabilities 25,293,715 22,228,209 Stockholders' equity (deficit): Common stock, $ 0.001 par value, 100,000,000 shares authorized, 26,237,125 shares issued and outstanding 26,237 26,237 Additional paid-in capital 1,034,580 994,279 Accumulated deficit ( 2,757,513 ) ( 2,307,140 ) Total stockholders' equity (deficit) ( 1,696,696 ) ( 1,286,624 ) Total liabilities and stockholders' equity (deficit) 23,597,019 20,941,585 See accompanying notes to financial statements. 3 HUBILU VENTURE CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) 2025 2024 2025 2024 For the Three Months Ended For the Nine Months Ended September 30, September 30, 2025 2024 2025 2024 Rental revenue 628,792 616,393 1,588,731 1,666,452

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