My City Builders Narrows Loss, Boosts Rental Income

TL;DR

**MYCB is cutting losses and growing rental revenue, but cash is still tight and they're leaning on related-party deals to stay afloat.**

AI Summary

My City Builders, Inc. (MYCB) reported a significant reduction in net loss for the nine months ended April 30, 2025, decreasing to $215,051 from $1,174,411 in the prior year, primarily due to the absence of a $947,500 impairment loss on investment. Revenue from rental income more than doubled to $90,232 for the nine-month period, up from $35,645. Total assets increased to $4,307,607 as of April 30, 2025, from $3,469,049 at July 31, 2024, driven by a rise in homes inventory for sales to $1,933,795 and property and equipment, net, to $2,332,043. However, the company's cash position declined to $15,813 from $20,245. Operating expenses decreased slightly to $224,669 from $230,184, with professional fees falling from $165,750 to $112,360. The company issued 4,290,000 shares of common stock for the settlement of $1,716,000 in related-party debt during the period. Total liabilities decreased to $1,644,978 from $2,307,369, largely due to a reduction in 'Due to related parties' from $1,106,000 to $298,500.

Why It Matters

This 10-Q shows My City Builders is making strides in reducing its net loss and growing rental income, which could signal a more stable operational foundation for investors. The significant reduction in related-party debt through common stock issuance, totaling $1,716,000, also improves the balance sheet's health and reduces potential conflicts of interest. However, the declining cash balance and reliance on related-party financing for operations remain key concerns. In a competitive real estate market, MYCB's focus on low-income housing could offer a niche, but its ability to scale and generate consistent profits without heavy debt or equity dilution is critical for long-term investor confidence.

Risk Assessment

Risk Level: medium — The company's cash balance is critically low at $15,813 as of April 30, 2025, down from $20,245, indicating potential liquidity issues. While net loss decreased significantly, the company still reported a net loss of $215,051 for the nine months, and relies heavily on advances from related parties ($1,249,200 in the current period) for financing activities, suggesting ongoing operational cash burn.

Analyst Insight

Investors should monitor MYCB's cash flow closely and look for signs of sustained profitability and reduced reliance on related-party financing. The increase in rental income is positive, but the company needs to demonstrate it can generate sufficient operating cash to fund its growth and reduce its accumulated deficit of $2,234,659.

Financial Highlights

debt To Equity

0.62

revenue

$90,232

operating Margin

N/A

total Assets

$4,307,607

total Debt

$1,644,978

net Income

-$215,051

eps

N/A

gross Margin

N/A

cash Position

$15,813

revenue Growth

+153.1%

Revenue Breakdown

Key Numbers

• $215,051 — Net Loss (for the nine months ended April 30, 2025, a significant reduction from $1,174,411 in the prior year)
• $90,232 — Rental Income (for the nine months ended April 30, 2025, more than double the $35,645 from the prior year)
• $15,813 — Cash (as of April 30, 2025, a decrease from $20,245 at July 31, 2024)
• $1,933,795 — Homes Inventory for Sales (as of April 30, 2025, an increase from $1,613,005 at July 31, 2024)
• $2,332,043 — Property and Equipment, net (as of April 30, 2025, an increase from $1,833,192 at July 31, 2024)
• $1,716,000 — Common Stock Issued for Debt Settlement (non-cash financing activity for settlement of related-party debt)
• $2,234,659 — Accumulated Deficit (as of April 30, 2025, indicating historical losses)
• $1,249,200 — Advances from Related Parties (cash provided by financing activities for the nine months ended April 30, 2025)
• 16,276,686 — Common Shares Outstanding (as of April 30, 2025, an increase from 11,986,686 at July 31, 2024)
• $298,500 — Due to Related Parties (as of April 30, 2025, a significant decrease from $1,106,000 at July 31, 2024)

Key Players & Entities

• My City Builders, Inc. (company) — registrant
• RAC Real Estate Acquisition Corp. (company) — wholly-owned subsidiary
• RAC Gadsden, LLC (company) — limited liability company formed by RAC
• Frank Gillen (person) — member of RAC Gadsden, LLC and former RAC shareholder
• Michael Colvard (person) — former member and manager of RAC Gadsden, LLC
• RAC Merger LLC (company) — purchaser of RAC Real Estate Acquisition Corp. shares
• SEC (regulator) — Securities and Exchange Commission
• Nevada (regulator) — state of incorporation for My City Builders, Inc.
• Wyoming (regulator) — state of incorporation for RAC Real Estate Acquisition Corp.
• Alabama (regulator) — state of incorporation for RAC Gadsden, LLC

FAQ

Risk Factors

• Declining Cash Position [medium — financial]: The company's cash decreased to $15,813 as of April 30, 2025, from $20,245 at July 31, 2024. This reduction, despite revenue growth, could impact short-term liquidity and operational flexibility.
• Reliance on Related Party Transactions [medium — financial]: While 'Due to Related Parties' decreased significantly from $1,106,000 to $298,500, the company still has substantial related-party balances. The settlement of $1,716,000 in debt through common stock issuance highlights this reliance and potential for future equity dilution.
• Accumulated Deficit [high — financial]: The company continues to carry a significant accumulated deficit of $2,234,659 as of April 30, 2025. This indicates a history of net losses, and sustained profitability is required to overcome this deficit.
• Inventory Growth [medium — operational]: Homes inventory for sales increased to $1,933,795 from $1,613,005. While this supports future sales, it ties up capital and carries risks associated with market demand and property value fluctuations.
• Debt Management [medium — financial]: Total liabilities decreased to $1,644,978 from $2,307,369, primarily due to the reduction in 'Due to related parties'. However, bank borrowings net of current portion remain substantial at $1,168,297.

Industry Context

My City Builders, Inc. operates in the real estate development and rental sector. This industry is characterized by significant capital requirements, cyclical demand, and sensitivity to interest rates. Competition can be localized, with success depending on development expertise, market timing, and access to financing.

Regulatory Implications

The company must comply with various real estate development, zoning, and environmental regulations. Changes in housing market regulations or lending standards could impact operations. The significant issuance of stock for debt settlement may also attract scrutiny regarding capital structure and shareholder dilution.

What Investors Should Do

1. Monitor cash flow closely.
2. Analyze the sustainability of revenue growth.
3. Evaluate the impact of equity issuance.
4. Assess inventory turnover and sales pipeline.

Key Dates

• 2025-04-30: Nine months ended April 30, 2025 — Reported a reduced net loss of $215,051, significant improvement from $1,174,411 in the prior year, largely due to absence of impairment loss. Rental income more than doubled to $90,232.
• 2025-04-30: Common Stock Issued for Debt Settlement — 4,290,000 shares issued to settle $1,716,000 in related-party debt, a significant non-cash financing activity impacting share count and equity structure.
• 2024-07-31: Fiscal Year End July 31, 2024 — Prior period comparative figures for assets, liabilities, and equity. Total assets were $3,469,049 and total liabilities were $2,307,369.

Glossary

Accumulated deficit

The total net losses of a company over its lifetime that have not been offset by net income. (Indicates the company's historical unprofitability, with a deficit of $2,234,659 as of April 30, 2025.)

Homes inventory for sales

Properties that a real estate developer or builder owns and intends to sell. (Increased to $1,933,795, representing a significant portion of current assets and a key driver of future revenue, but also a capital commitment.)

Impairment loss

A reduction in the carrying value of an asset when its fair value is less than its book value. (The absence of a $947,500 impairment loss in the current period was a primary driver for the reduced net loss.)

Due to related parties

Amounts owed by the company to individuals or entities that have a close relationship with the company (e.g., officers, directors, major shareholders). (Decreased significantly to $298,500 from $1,106,000, reducing overall liabilities but still indicating ongoing related-party financial ties.)

Additional paid in capital

The amount of money an investor pays for stock above its par value. (Increased substantially to $4,881,424, largely due to the issuance of common stock for debt settlement.)

Year-Over-Year Comparison

My City Builders, Inc. has shown a significant improvement in its net loss, reducing it from $1,174,411 to $215,051 for the nine-month period, primarily due to the absence of a large impairment charge. Revenue from rental income more than doubled, indicating operational progress. However, the company's cash position has declined, and a substantial amount of common stock was issued to settle related-party debt, increasing the share count and potentially diluting existing shareholders. Total assets have grown, driven by increases in inventory and property, while total liabilities have decreased, largely due to a reduction in amounts due to related parties.

Key Financial Figures

• $0.001 — of the issuer's common stock, par value $0.001 per share, outstanding. TABLE OF CONTE

Filing Documents

• jrvs_10q.htm (10-Q) — 861KB
• jrvs_ex311.htm (EX-31.1) — 10KB
• jrvs_ex312.htm (EX-31.2) — 11KB
• jrvs_ex321.htm (EX-32.1) — 5KB
• jrvs_ex322.htm (EX-32.2) — 5KB
• 0001640334-25-001709.txt ( ) — 4336KB
• jrvs-20250430.xsd (EX-101.SCH) — 47KB
• jrvs-20250430_lab.xml (EX-101.LAB) — 271KB
• jrvs-20250430_cal.xml (EX-101.CAL) — 44KB
• jrvs-20250430_pre.xml (EX-101.PRE) — 237KB
• jrvs-20250430_def.xml (EX-101.DEF) — 156KB
• jrvs_10q_htm.xml (XML) — 608KB

: Financial Information

Part I: Financial Information Item 1.

Financial Statements

Financial Statements F-1 Item 2.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 4 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 10 Item 4.

Controls and Procedures

Controls and Procedures 10

: Other Information

Part II: Other Information Item 1.

Legal Proceedings

Legal Proceedings 12 Item 1A.

Risk Factors

Risk Factors 12 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 12 Item 3. Defaults Upon Senior Securities 12 Item 4. Mine Safety Disclosures 12 Item 5. Other Information 12 Item 6. Exhibits 13 2 Table of Contents

FORWARD LOOKING STATEMENTS

FORWARD LOOKING STATEMENTS This report contains forward-looking statements regarding our business, financial condition, results of operations and prospects. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates" and similar expressions or variations of such words are intended to identify forward-looking statements but are not deemed to represent an all-inclusive means of identifying forward-looking statements as denoted in this report. Additionally, statements concerning future matters are forward-looking statements. Although forward-looking statements in this report reflect the good faith judgment of our management, such statements can only be based on facts and factors currently known by us. Consequently, forward-looking statements are inherently subject to risks and uncertainties and actual results and outcomes may differ materially from the results and outcomes discussed in or anticipated by the forward-looking statements. Factors that could cause or contribute to such differences in results and outcomes include, without limitation, those specifically addressed under the headings "Risks Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our annual report on Form 10-K for the year ended July 31, 2024, in "Management's Discussion and Analysis of Financial Condition and Results of Operations" in this Form 10-Q, and information contained in other reports that we file with the SEC. You are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this report. We file reports with the SEC. The SEC maintains a website (www.sec.gov) that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC, including us. We undertake no obligation to revise or update any forward-looking statements in order to reflect any event or circumstance that may arise after the da

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements My City Builders, Inc. Index to Unaudited Interim Condensed Consolidated Financial Statements April 30, 2025 Page Condensed Consolidated Balance Sheets as of April 30, 2025, and July 31, 2024 (Unaudited) F-2 Condensed Consolidated Statements of Operations for the three and nine months ended April 30, 2025, and 2024 (Unaudited) F-3 Condensed Consolidated Statements of Changes in Stockholders' Equity (Deficit) for the nine months ended April 30, 2025, and 2024 (Unaudited) F-4 Condensed Consolidated Statements of Cash Flows for the nine months ended April 30, 2025, and 2024 (Unaudited) F-5 Notes to Unaudited Condensed Consolidated Financial Statements F-6 F-1 Table of Contents My City Builders, Inc. Condensed Consolidated Balance Sheets (Unaudited) April 30, July 31, 2025 2024 ASSETS Current Assets Cash $ 15,813 $ 20,245 Prepaid expenses 21,593 - Accounts receivable 4,363 2,607 Homes inventory for sales 1,933,795 1,613,005 Total Current Assets 1,975,564 1,635,857 Property and equipment, net 2,332,043 1,833,192 TOTAL ASSETS $ 4,307,607 $ 3,469,049 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) Current Liabilities Accounts payable and accrued liabilities $ 36,908 $ 79,563 Rent deposit payable 1,000 - Loan payable - current portion 25,000 25,000 Loans payable, related party - 28,500 Due to related parties 298,500 1,106,000 Bank borrowings - current portion, net 90,273 332,589 Total Current Liabilities 451,681 1,571,652 Bank borrowings, net 1,168,297 710,717 Loan payable 25,000 25,000 TOTAL LIABILITIES 1,644,978 2,307,369 Stockholders' Equity Preferred stock: 10,000,000 authorized; $ 0.001 par value - - Series A preferred stock 100,000 designated; $ 0.001 par value 100,000 shares issued and outstanding 100 100 Common stock: 300,000,000 authorized; $ 0.001 par value 16,276,686 and 11,986,686 shares iss

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