Ark7 Properties Advance LLC
10/08/2026 | Press release | Distributed by Public on 10/08/2026 12:20
Special Semiannual Financial Report under Regulation A (Form 1-SA)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 1-SA
SEMIANNUAL REPORT PURSUANT TO REGULATION A
For the fiscal semiannual period ended
June 30, 2026
ARK7 PROPERTIES ADVANCE LLC
(A DELAWARE SERIES LIMITED LIABILITY COMPANY)
(Exact name of issuer as specified in its charter)
|
Delaware |
93-3960285 |
|
(State or other jurisdiction of incorporation or organization) |
(IRS Employer Identification No.) |
1 Ferry Building, Ste 201
San Francisco, CA 94111
(Full mailing address of principal executive offices)
415-275-0701
(Issuer's telephone number, including area code)
Series #TPVS2, Series #ESMYO, Series #6MWZZ, Series #BULMO, Series #ICBTL, Series #NETKE, Series #DJGLA, Series #HEEMV, Series #8S8XK, Series #IDUG0, Series #LOZV7, Series #9WWAJ, Series #UZMTK, Series #JVI51, and Series #PJI26
(Title of each class of securities issued pursuant to Regulation A)
TABLE OF CONTENTS
|
ITEM 1. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION |
1 | |
|
ITEM 2. OTHER INFORMATION |
1 | |
|
ITEM 3. FINANCIAL STATEMENTS |
7 | |
|
EXHIBIT INDEX |
26 |
I
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
THE INFORMATION CONTAINED IN THIS REPORT MAY CONTAIN FORWARD-LOOKING STATEMENTS AND INFORMATION RELATING TO, AMONG OTHER THINGS, THE COMPANY, ITS BUSINESS PLAN AND STRATEGY, AND ITS INDUSTRY. THESE FORWARD-LOOKING STATEMENTS ARE BASED ON THE BELIEFS OF, ASSUMPTIONS MADE BY, AND INFORMATION CURRENTLY AVAILABLE TO THE COMPANY'S MANAGEMENT. WHEN USED IN THIS REPORT, THE WORDS "ESTIMATE," "PROJECT," "BELIEVE," "ANTICIPATE," "INTEND," "EXPECT" AND SIMILAR EXPRESSIONS ARE INTENDED TO IDENTIFY FORWARD-LOOKING STATEMENTS, WHICH CONSTITUTE FORWARD LOOKING STATEMENTS. THESE STATEMENTS REFLECT MANAGEMENT'S CURRENT VIEWS WITH RESPECT TO FUTURE EVENTS AND ARE SUBJECT TO RISKS AND UNCERTAINTIES THAT COULD CAUSE THE COMPANY'S ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE CONTAINED IN THE FORWARD-LOOKING STATEMENTS. INVESTORS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON THESE FORWARD-LOOKING STATEMENTS, WHICH SPEAK ONLY AS OF THE DATE ON WHICH THEY ARE MADE. THE COMPANY DOES NOT UNDERTAKE ANY OBLIGATION TO REVISE OR UPDATE THESE FORWARD-LOOKING STATEMENTS TO REFLECT EVENTS OR CIRCUMSTANCES AFTER SUCH DATE OR TO REFLECT THE OCCURRENCE OF UNANTICIPATED EVENTS.
In this Annual Report, "we," "us," "our" or "our company", shall refer to Ark7 Properties Advance LLC. All of the series of our company may collectively be referred to in this Annual Report as the "series" and each, individually, as a "series." The membership interests of all series described above may collectively be referred to in this Annual Report as the "shares" and each, individually, as a "share". Ark7 Inc., a Delaware corporation ("Ark7") will serve as the asset manager responsible for managing each Series' Underlying Asset (the "Asset Manager") as described in the Asset Management Agreement between Ark7 Inc. and each series of Ark7 Properties Advance LLC. Ark7 will serve as the Managing Member responsible for the day-to-day management of the company and each registered series.
II
ITEM 1. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION
You should read the following discussion and analysis of the financial statements and financial condition of Ark7 Properties Advance LLC and results of its operations together with: (i) its financial statements and related notes appearing at the end of this Offering Circular and (ii) the pro forma consolidated financial statements appearing at the end of this Offering Circular. This discussion contains forward-looking statements reflecting the company's current expectations that involve risks and uncertainties. Actual results and the timing of events may differ materially from those contained in these forward-looking statements due to a number of factors, including those discussed in the section entitled "Risk Factors" and elsewhere in this Offering Circular.
Overview
Ark7 Properties Advance LLC was formed on October 12, 2023 ("Inception") in the State of Delaware. Ark7 Properties Advance LLC is an investment vehicle which intends to enable investors to own fractional ownership of a specific real estate property. This lowers the cost-of-entry and minimizes the time commitment for real estate investing. An investment in the company entitles the investor to the potential economic benefits normally associated with direct property ownership, while requiring no investor involvement in asset or property management.
Ark7 is the company's Managing Member. As the company's Managing Member, it will manage the company's day-to-day operations. Ark7 is also the Managing Member of each Series and the Asset Manager of each Series and will manage each property that a Series acquires.
Emerging Growth Company
If the company becomes subject to the ongoing reporting requirements of the Exchange Act, we will qualify as an "emerging growth company" under the JOBS Act. As a result, we will be permitted to, and intend to, rely on exemptions from certain disclosure requirements. For so long as we are an emerging growth company, we will not be required to:
- have an auditor report on our internal controls over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act;
- comply with any requirement that may be adopted by the Public Company Accounting Oversight Board regarding mandatory audit firm rotation or a supplement to the auditor's report providing additional information about the audit and the financial statements (i.e., an auditor discussion and analysis);
- submit certain executive compensation matters to shareholder advisory votes, such as "say-on-pay" and "say-on-frequency;" and
- disclose certain executive compensation related items such as the correlation between executive compensation and performance and comparisons of the CEO's compensation to median employee compensation.
In addition, Section 107 of the JOBS Act also provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. In other words, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to take advantage of the benefits of this extended transition period. Our financial statements may therefore not be comparable to those of companies that comply with such new or revised accounting standards.
We will remain an "emerging growth company" for up to five years, or until the earliest of (i) the last day of the first fiscal year in which our total annual gross revenues exceed $1.07 billion, (ii) the date that we become a "large accelerated filer" as defined in Rule 12b-2 under the Exchange Act, which would occur if the market value of our interests that is held by non-affiliates exceeds $700 million as of the last business day of our most recently completed second fiscal quarter or (iii) the date on which we have issued more than $1.07 billion in non-convertible debt during the preceding three year period.
1
Operating Results - Six Months Ended June 30, 2026 and 2025
Revenues are generated at the series level. For the period ended June 30, 2026 and 2025, the Series aggregated together generated $198,614 and $120,975 in revenues, respectively.
These revenues were generated by rental income across each Series as set out below:
|
Series |
Gross Rental Income as of June 30, 2026 |
Gross Rental Income as of June 30, 2025 |
||
|
#TPVS2 |
$
13,755
|
$
13,040
|
||
|
#ESMYO |
$
5,066
|
$
5,284
|
||
|
#6MWZZ |
$
9,000
|
$
7,900
|
||
|
#ICBTL |
$
17,384
|
$
16,326
|
||
|
#NETKE |
$
10,470
|
$
10,470
|
||
|
#BULMO |
$
19,640
|
$
19,200
|
||
|
#DJGLA |
$
16,213
|
$
16,224
|
||
|
#HEEMV |
$
16,037
|
$
17,147
|
||
|
#8S8XK |
$
8,400
|
$
0
|
||
|
#IDUG0 |
$
8,400
|
$
0
|
||
|
#LOZV7 |
$
9,000
|
$
0
|
||
|
#9WWAJ |
$
23,076
|
$
15,384
|
||
|
#JVI51 |
$
15,900
|
$
0
|
||
|
#UZMTK |
$
15,635
|
$
0
|
||
|
#PJI26 |
$
10,639
|
$
0
|
Over this same period, each series incurred expenses from operations of the series, as well as professional expenses related to undertaking the Series offering. Expenses from operations of the properties, such as utilities, repairs and maintenance, insurance, and property tax amounted to:
|
Series |
Expenses Relating to Operating of the Property as of June 30, 2026 |
Expenses Relating to Operating of the Property as of June 30, 2025 |
||
|
#TPVS2 |
$
5,933
|
$
6,909
|
||
|
#ESMYO |
$
4,486
|
$
1,982
|
||
|
#6MWZZ |
$
2,806
|
$
2,406
|
||
|
#ICBTL |
$
9,132
|
$
6,012
|
||
|
#NETKE |
$
2,563
|
$
2,216
|
||
|
#BULMO |
$
7,316
|
$
7,498
|
||
|
#DJGLA |
$
8,751
|
$
5,550
|
||
|
#HEEMV |
$
10,022
|
$
7,361
|
||
|
#8S8XK |
$
2,510
|
$
2,365
|
||
|
#IDUG0 |
$
2,542
|
$
2,366
|
||
|
#LOZV7 |
$
2,620
|
$
2,419
|
||
|
#9WWAJ |
$
6,585
|
$
4,436
|
||
|
#JVI51 |
$
6,121
|
$
338
|
||
|
#UZMTK |
$
5,487
|
$
(84)
|
||
|
#PJI26 |
$
4,783
|
$
0
|
When including all expenses, such as legal and professional fees, general and administrative expenses, depreciation, and interest expense to Ark7, against revenues during this period, resulted in net income of the following:
|
Series |
Net Income (Loss) as of June 30, 2026 |
Net Income (Loss) as of June 30, 2025 |
||
|
#TPVS2 |
$
4,183
|
$
2,285
|
||
|
#ESMYO |
$
(2,005)
|
$
(21,895)
|
||
|
#6MWZZ |
$
2,029
|
$
(21,654)
|
||
|
#ICBTL |
$
4,474
|
$
6,445
|
||
|
#NETKE |
$
5,423
|
$
(19,019)
|
||
|
#BULMO |
$
6,453
|
$
(49,470)
|
||
|
#DJGLA |
$
4,820
|
$
(19,964)
|
||
|
#HEEMV |
$
2,289
|
$
(18,570)
|
||
|
#8S8XK |
$
2,218
|
$
(11,944)
|
||
|
#IDUG0 |
$
(19,302)
|
$
(14,387)
|
||
|
#LOZV7 |
$
2,320
|
$
(15,824)
|
||
|
#9WWAJ |
$
12,147
|
$
(3,047)
|
||
|
#JVI51 |
$
5,128
|
$
(338)
|
||
|
#UZMTK |
$
(31,241)
|
$
84
|
||
|
#PJI26 |
$
(22,538)
|
$
0
|
2
Liquidity and Capital Resources
Each Series has allocated funds to establish property management reserves. These funds are designed to mitigate future financial uncertainties associated with property-related expenses, including maintenance, repairs, enhancements, or unanticipated costs. The aim is to maintain the properties in satisfactory condition, prevent financial strain, and preclude the necessity for immediate supplementary contributions from investors or owners due to substantial, unexpected expenses. As of June 30, 2026, the balance of the property management reserve by Series was:
|
Series |
Cash and Property Management Reserve as of June 30, 2026 |
|
|
#TPVS2 |
$
1,999
|
|
|
#ESMYO |
$
(49)
|
|
|
#6MWZZ |
$
276
|
|
|
#ICBTL |
$
11,680
|
|
|
#NETKE |
$
3,788
|
|
|
#BULMO |
$
5,128
|
|
|
#DJGLA |
$
11,233
|
|
|
#HEEMV |
$
10,586
|
|
|
#8S8XK |
$
3,381
|
|
|
#IDUG0 |
$
4,683
|
|
|
#LOZV7 |
$
4,928
|
|
|
#9WWAJ |
$
4,663
|
|
|
#JVI51 |
$
11,462
|
|
|
#UZMTK |
$
5,414
|
|
|
#PJI26 |
$
3,803
|
An additional $0 of cash is held by Ark7 Properties Advance LLC that is not assigned to a specific series.
3
Down Payment Loan Payables
The Parent Company provide initial funding required for property acquisitions and structured this as a down payment loan to APAL and its series. Borrowers are authorized to use the Parent Company's bank checking account for property acquisition purpose.
Series #6MWZZ
On October 8, 2024, the APAL - Series #6MWZZ executed a Loan Agreement from the Parent Company. According to the Loan Agreement, the APAL - Series #6MWZZ borrowed $220,000 at 10% interest with a maturity of October 7, 2025. The loan was paid off in 2025, and the outstanding balance of the Loan Payable - Down Payment Loan as of June 30, 2026 and December 31, 2025 was $0 and $0, respectively, and is included in related party payables on the accompanying balance sheet. The interest expenses incurred in the six months ended at June 30, 2026 and 2025 was $0 and $1,477, respectively.
Series #8S8XK
On January 9, 2025, the APAL - Series #8S8XK executed a Loan Agreement from the Parent Company. According to the Loan Agreement, the APAL - Series #8S8XK borrowed $220,000 at 10% interest with a maturity of January 8, 2026. The loan was paid off in 2025, and the outstanding balance of the Loan Payable - Down Payment Loan as of June 30, 2026 and December 31, 2025 was $0 and $0, respectively, and is included in related party payables on the accompanying balance sheet. The interest expenses incurred in the six months ended at June 30, 2026 and 2025 was $0 and $6,600, respectively.
Series #9WWAJ
On February 28, 2025, the APAL - Series #9WWAJ executed a Loan Agreement from the Parent Company. According to the Loan Agreement, the APAL - Series #9WWAJ borrowed $290,000 at 10% interest with a maturity of February 27, 2026. The loan was paid off in 2025, and the outstanding balance of the Loan Payable - Down Payment Loan as of June 30, 2026 and December 31, 2025 was $0 and $0, respectively, and is included in related party payables on the accompanying balance sheet. The interest expenses incurred in the six months ended at June 30, 2026 and 2025 was $0 and $9,773, respectively.
Series #BULMO
On August 19, 2024, the APAL - Series #BULMO executed a Loan Agreement from the Parent Company. According to the Loan Agreement, the APAL - Series #BULMO borrowed $640,000 at 10% interest with a maturity of August 18, 2025. The loan was paid off in 2025, and the outstanding balance of the Loan Payable - Down Payment Loan as of June 30, 2026 and December 31, 2025 was $0 and $0, respectively, and is included in related party payables on the accompanying balance sheet. The interest expenses incurred in the six months ended at June 30, 2026 and 2025 was $0 and $0, respectively.
Series #DJGLA
On September 26, 2024, the APAL - Series #DJGLA executed a Loan Agreement from the Parent Company. According to the Loan Agreement, the APAL - Series #DJGLA borrowed $255,000 at 10% interest with a maturity of September 25, 2025. The loan was paid off in 2025, and the outstanding balance of the Loan Payable - Down Payment Loan as of June 30, 2026 and December 31, 2025 was $0 and $0, respectively, and is included in related party payables on the accompanying balance sheet. The interest expenses incurred in the six months ended at June 30, 2026 and 2025 was $0 and $3,544, respectively.
Series #ESMYO
On October 8, 2024, the APAL - Series #ESMYO executed a Loan Agreement from the Parent Company. According to the Loan Agreement, the APAL - Series #ESMYO borrowed $230,000 at 10% interest with a maturity of October 7, 2025. The loan was paid off in 2025, and the outstanding balance of the Loan Payable - Down Payment Loan as of June 30, 2026 and December 31, 2025 was $0 and $0, respectively, and is included in related party payables on the accompanying balance sheet. The interest expenses incurred in the six months ended at June 30, 2026 and 2025 was $0 and $0, respectively.
Series #HEEMV
On September 26, 2024, the APAL - Series #HEEMV executed a Loan Agreement from the Parent Company. According to the Loan Agreement, the APAL - Series #HEEMV borrowed $260,000 at 10% interest with a maturity of September 25, 2025. The loan was paid off in 2025, and the outstanding balance of the Loan Payable - Down Payment Loan as of June 30, 2026 and December 31, 2025 was $0 and $0, respectively, and is included in related party payables on the accompanying balance sheet. The interest expenses incurred in the six months ended at June 30, 2026 and 2025 was $0 and $890, respectively.
Series #ICBTL
On August 9, 2024, the APAL - Series #ICBTL executed a Loan Agreement from the Parent Company. According to the Loan Agreement, the APAL - Series #ICBTL borrowed $280,000 at 10% interest with a maturity of August 8, 2025. The loan was paid off in 2024, and the outstanding balance of the Loan Payable - Down Payment Loan as of June 30, 2026 and December 31, 2025 was $0 and $0, respectively, and is included in related party payables on the accompanying balance sheet. The interest expenses incurred in the six months ended at June 30, 2026 and 2025 was $0 and $0, respectively.
Series #IDUG0
On January 9, 2025, the APAL - Series #IDUG0 executed a Loan Agreement from the Parent Company. According to the Loan Agreement, the APAL - Series #IDUG0 borrowed $220,000 at 10% interest with a maturity of January 8, 2026. The loan was paid off in 2025, and the outstanding balance of the Loan Payable - Down Payment Loan as of June 30, 2026 and December 31, 2025 was $0 and $0, respectively, and is included in related party payables on the accompanying balance sheet. The interest expenses incurred in the six months ended at June 30, 2026 and 2025 was $0 and $9,044, respectively.
Series #JVI51
On July 30, 2025, the APAL - Series #JVI51 executed a Loan Agreement from the Parent Company. According to the Loan Agreement, the APAL - Series #JVI51 borrowed $430,000 at 10% interest with a maturity of July 29, 2026. The loan was paid off in 2025, and the outstanding balance of the Loan Payable - Down Payment Loan as of June 30, 2026 and December 31, 2025 was $0 and $0, respectively, and is included in related party payables on the accompanying balance sheet. The interest expenses incurred in the six months ended at June 30, 2026 and 2025 was $0 and $0, respectively.
Series #LOZV7
On January 9, 2025, the APAL - Series #LOZV7 executed a Loan Agreement from the Parent Company. According to the Loan Agreement, the APAL - Series #LOZV7 borrowed $220,000 at 10% interest with a maturity of January 8, 2026. The loan was paid off in 2025, and the outstanding balance of the Loan Payable - Down Payment Loan as of June 30, 2026 and December 31, 2025 was $0 and $0, respectively, and is included in related party payables on the accompanying balance sheet. The interest expenses incurred in the six months ended at June 30, 2026 and 2025 was $0 and $10,427, respectively.
Series #NETKE
On September 20, 2024, the APAL - Series #NETKE executed a Loan Agreement from the Parent Company. According to the Loan Agreement, the APAL - Series #NETKE borrowed $250,000 at 10% interest with a maturity of September 19, 2025. The loan was paid off in 2025, and the outstanding balance of the Loan Payable - Down Payment Loan as of June 30, 2026 and December 31, 2025 was $0 and $0, respectively, and is included in related party payables on the accompanying balance sheet. The interest expenses incurred in the six months ended at June 30, 2026 and 2025 was $0 and $0, respectively.
Series #PJI26
On January 7, 2026, the APAL - Series #PJI26 executed a Loan Agreement from the Parent Company. According to the Loan Agreement, the APAL - Series #PJI26 borrowed $450,000 at 10% interest with a maturity of January 6, 2027. The loan was paid off in 2026, and the outstanding balance of the Loan Payable - Down Payment Loan as of June 30, 2026 and December 31, 2025 was $450,000 and $0, respectively, and is included in related party payables on the accompanying balance sheet. The interest expenses incurred in the six months ended at June 30, 2026 and 2025 was $21,575 and $0, respectively.
Series #TPVS2
On October 12, 2023, the APAL - Series #TPVS2 executed a Loan Agreement from the Parent Company. According to the Loan Agreement, the APAL - Series #TPVS2 borrowed $230,000 at 10% interest with a maturity of October 11, 2024. The loan was paid off in 2024, and the outstanding balance of the Loan Payable - Down Payment Loan as of June 30, 2026 and December 31, 2025 was $0 and $0, respectively, and is included in related party payables on the accompanying balance sheet. The interest expenses incurred in the six months ended at June 30, 2026 and 2025 was $0 and $0, respectively.
Series #UZMTK
On August 11, 2025, the APAL - Series #UZMTK executed a Loan Agreement from the Parent Company. According to the Loan Agreement, the APAL - Series #UZMTK borrowed $420,000 at 10% interest with a maturity of August 10, 2026. The outstanding balance of the Loan Payable - Down Payment Loan as of June 30, 2026 and December 31, 2025 was $22,511 and $236,701, respectively, and is included in related party payables on the accompanying balance sheet. The interest expenses incurred in the six months ended at June 30, 2026 and 2025 was $1,574 and $0, respectively.
4
Trend Information
Our results of operations are affected by a variety of factors, including conditions in the financial markets and the economic and political environments, particularly in the United States. Global economic conditions, including political environments, financial market performance, interest rates, credit spreads or other conditions beyond our control are unpredictable and could negatively affect the value of the series properties, our ability to acquire and manage single family rentals and the success of our current and future offerings. In addition to the aforementioned macroeconomic trends, we believe the following factors will influence our future performance:
- Recent increases in interest rates may have a negative effect on the demand for our offerings due to the attractiveness of alternative investments.
- The continuing increase in prices in the United States housing market may result in difficulties in sourcing properties and meeting demand for our offerings.
- Continued increases in remote work arrangements may lead to greater rental activity in our target markets.
5
ITEM 2. OTHER INFORMATION
None.
6
ITEM 3. FINANCIAL STATEMENTS
ARK7 PROPERTIES ADVANCE LLC
UNAUDITED CONSOLIDATED AND CONSOLIDATING FINANCIAL STATEMENTS
For the six months ended June 30, 2026 and 2025
F-1
Table of Contents
|
Consolidated Balance Sheet as of June 30, 2026 and December 31, 2025 |
F-3 | |
|
Consolidated Statement of Income for the six months ended June 30, 2026 and 2025 |
F-4 | |
|
Consolidated Statement of Members' Equity for the six months ended June 30, 2026 and 2025 |
F-5 | |
|
Consolidated Statement of Cash Flows for the six months ended June 30, 2026 and 2025 |
F-6 | |
|
Consolidated and consolidating Balance Sheet as of June 30, 2026 |
F-7 | |
|
Consolidated and consolidating Statement of Income for the six months ended June 30, 2026 |
F-8 | |
|
Consolidated and consolidating Statement of Members' Equity for the six months ended June 30, 2026 |
F-9 | |
|
Consolidated and consolidating Statement of Cash Flows for the six months ended June 30, 2026 |
F-10 | |
|
Notes to the Consolidated and consolidating Financial Statements |
F-11 |
F-2
Ark7 Properties Advance LLC
Consolidated Balance Sheet
As of June 30, 2026 and December 31, 2025
|
Description |
June 30, 2026 | December 31, 2025 | ||
|
Assets |
||||
|
Current Assets
|
||||
|
Cash and cash equivalents
|
$
1,304,172
|
$
420,847
|
||
|
Receivables
|
1,500 | - | ||
|
Related party receivables
|
947,204 | 526,159 | ||
|
Prepaid expenses
|
78,485 | 30,487 | ||
|
Total Current Assets
|
2,331,361 | 977,493 | ||
|
Noncurrent Assets
|
||||
|
Property, plant, and equipment
|
||||
|
Property, plant, and equipment - Cost
|
4,548,357 | 4,095,893 | ||
|
Property, plant, and equipment - Accumulated Depreciation
|
(195,896) | (130,169) | ||
|
Total Property, plant, and equipment
|
4,352,461 | 3,965,725 | ||
|
Total Noncurrent Assets
|
4,352,461 | 3,965,725 | ||
|
Total Assets |
6,683,822 | 4,943,218 | ||
|
Liabilities & Members' Equity |
||||
|
Liabilities
|
||||
|
Current Liabilities
|
||||
|
Accounts payable and accrued liabilities
|
90,574 | 29,743 | ||
|
Current portion of mortgage payable
|
29,348 | 23,630 | ||
|
Related party payables
|
(0) | (0) | ||
|
Other liabilities, current
|
14,430 | 14,458 | ||
|
Total Current Liabilities
|
134,352 | 67,830 | ||
|
Noncurrent Liabilities
|
||||
|
Mortgage payable
|
2,575,193 | 970,412 | ||
|
Total Noncurrent Liabilities
|
2,575,193 | 970,412 | ||
|
Total Liabilities
|
2,709,545 | 1,038,243 | ||
|
Member's Equity
|
||||
|
Equity
|
||||
|
Members' Equity
|
4,465,268 | 4,312,310 | ||
|
Retained Earnings (Accumulated Deficit)
|
(490,991) | (407,335) | ||
|
Total Equity
|
3,974,277 | 3,904,975 | ||
|
Total Member's Equity
|
3,974,277 | 3,904,975 | ||
|
Total Liabilities & Members' Equity |
$
6,683,822
|
$
4,943,218
|
F-3
Ark7 Properties Advance LLC
Consolidated Statement of Income
For the six months ended June 30, 2026 and 2025
|
Description |
June 30, 2026 | June 30, 2025 | ||
|
Net Income (Loss) |
||||
|
Gross Profit (Loss)
|
||||
|
Rental Income
|
$
197,974
|
$
120,975
|
||
|
Other rental fees
|
640 | - | ||
|
Total Gross Profit (Loss)
|
198,614 | 120,975 | ||
|
Operating Expenses
|
||||
|
General and administrative expenses
|
97,043 | 198,192 | ||
|
Depreciation and amortization expenses
|
66,651 | 45,405 | ||
|
Property tax and state fee
|
50,261 | 23,816 | ||
|
Total Operating Expenses
|
213,955 | 267,414 | ||
|
Operating Income (Loss)
|
(15,341) | (146,438) | ||
|
Other Income (Loss)
|
||||
|
Interest expense
|
(68,315) | (1,546) | ||
|
Interest expense, related party
|
(0) | - | ||
|
Other income (expense)
|
- | - | ||
|
Total Other Income (Loss)
|
(68,315) | (1,546) | ||
|
Total Net Income (Loss) |
$
(83,656)
|
$
(147,985)
|
F-4
Ark7 Properties Advance LLC
Consolidated Statement of Members' Equity
For the six months ended June 30, 2026 and 2025
|
Description |
June 30, 2026 | June 30, 2025 | ||
|
Balance at the beginning of the period |
$
3,904,975
|
$
1,926,989
|
||
|
Equity Contribution |
279,363 | 998,300 | ||
|
Net Income (Loss) |
(83,656) | (147,985) | ||
|
Distribution |
(126,405) | (69,930) | ||
|
Balance at the end of the period |
$
3,974,277
|
$
2,707,374
|
F-5
Ark7 Properties Advance LLC
Consolidated Statement of Cash Flows
For the six months ended June 30, 2026 and 2025
|
Description |
June 30, 2026 | June 30, 2025 | ||
|
Cash Flows From Operating Activities |
||||
|
Net Income (Loss)
|
$
(83,656)
|
$
(147,985)
|
||
|
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by (Used in) Operating Activities
|
||||
|
Depreciation and amortization
|
66,651 | 45,405 | ||
|
(Increase) decrease in operating assets, net of effects of businesses acquired
|
||||
|
Accounts receivable
|
(1,500) | (2,646) | ||
|
Related party receivables
|
(1,709,576) | |||
|
Prepaid expenses
|
(47,998) | (56,973) | ||
|
Increase (decrease) in operating liabilities, net of effects of businesses acquired
|
||||
|
Accounts payable and accrued expenses
|
55,385 | 40,487 | ||
|
Related party payables
|
1,234,777 | 155,609 | ||
|
Other liabilities
|
(28) | 5,260 | ||
|
Net Cash Provided by (Used in) Operating Activities |
(485,945) | 39,157 | ||
|
Cash Flows from Investing Activities |
||||
|
Purchase of property, plant, and equipment
|
(452,464) | (956,675) | ||
|
Cash Flows from Financing Activities |
||||
|
Proceeds from issuance of debt
|
1,668,776 | |||
|
Repayment of related party debt
|
- | |||
|
Proceeds from private offerings
|
279,363 | 998,300 | ||
|
Distributions to partners
|
(126,405) | (69,930) | ||
|
Net Cash Provided by (Used in) Financing Activities |
1,821,733 | 1,299,631 | ||
|
Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash |
883,325 | 382,113 | ||
|
Cash, Cash Equivalents, and Restricted Cash at the beginning of the period |
420,847 | 16,428 | ||
|
Cash, Cash Equivalents, and Restricted Cash at the end of the period |
1,304,172 | 398,541 | ||
|
Supplemental Cash Flow information |
||||
|
Cash Paid During the Year for
|
||||
|
Interest
|
$
68,315
|
$
1,546
|
F-6
Ark7 Properties Advance LLC
Consolidated and consolidating Balance Sheet
As of June 30, 2026
|
Description |
Ark7 Properties Advance LLC | Ark7 Properties Advance LLC - Series #6MWZZ | Ark7 Properties Advance LLC - Series #8S8XK | Ark7 Properties Advance LLC - Series #9WWAJ | Ark7 Properties Advance LLC - Series #BULMO | Ark7 Properties Advance LLC - Series #DJGLA | Ark7 Properties Advance LLC - Series #ESMYO | Ark7 Properties Advance LLC - Series #HEEMV | Ark7 Properties Advance LLC - Series #ICBTL | Ark7 Properties Advance LLC - Series #IDUG0 | ||||||||||
|
Assets |
||||||||||||||||||||
|
Current Assets
|
||||||||||||||||||||
|
Cash and cash equivalents
|
$
1,221,196
|
$
276
|
$
3,381
|
$
4,663
|
$
5,128
|
$
11,233
|
$
(49)
|
$
10,586
|
$
11,680
|
$
4,683
|
||||||||||
|
Receivables
|
$
1,500
|
$
-
|
$
-
|
$
-
|
$
-
|
$
-
|
$
-
|
$
-
|
$
-
|
$
-
|
||||||||||
|
Related party receivables
|
(1,571,942) | 115,674 | 87,836 | 304,537 | 350,734 | 115,035 | 125,369 | 85,938 | 133,707 | 107,241 | ||||||||||
|
Prepaid expenses
|
- | 5,479 | 3,279 | 6,384 | 1,035 | 11,370 | 4,180 | 10,289 | 9,512 | 3,133 | ||||||||||
|
Total Current Assets
|
(349,245) | 121,429 | 94,496 | 315,584 | 356,896 | 137,638 | 129,500 | 106,813 | 154,900 | 115,057 | ||||||||||
|
Noncurrent Assets
|
||||||||||||||||||||
|
Property, plant, and equipment
|
||||||||||||||||||||
|
Property, plant, and equipment - Cost
|
- | 234,839 | 217,351 | 293,808 | 634,047 | 250,431 | 231,914 | 255,892 | 270,521 | 217,200 | ||||||||||
|
Property, plant, and equipment - Accumulated Depreciation
|
- | (11,933) | (9,282) | (11,424) | (34,392) | (12,799) | (11,635) | (13,051) | (14,803) | (9,271) | ||||||||||
|
Total Property, plant, and equipment
|
- | 222,906 | 208,069 | 282,384 | 599,655 | 237,632 | 220,279 | 242,841 | 255,718 | 207,929 | ||||||||||
|
Total Noncurrent Assets
|
- | 222,906 | 208,069 | 282,384 | 599,655 | 237,632 | 220,279 | 242,841 | 255,718 | 207,929 | ||||||||||
|
Total Assets |
(349,245) | 344,335 | 302,564 | 597,968 | 956,552 | 375,270 | 349,779 | 349,654 | 410,617 | 322,986 | ||||||||||
|
Liabilities & Members' Equity |
||||||||||||||||||||
|
Liabilities
|
||||||||||||||||||||
|
Current Liabilities
|
||||||||||||||||||||
|
Accounts payable and accrued liabilities
|
90,574 | - | - | - | - | - | - | - | - | - | ||||||||||
|
Current portion of mortgage payable
|
- | 1,681 | 1,379 | 2,024 | 3,584 | 1,735 | 1,436 | 1,196 | 1,647 | 1,602 | ||||||||||
|
Related party payables
|
(472,511) | - | - | - | - | - | - | - | - | - | ||||||||||
|
Other liabilities, current
|
- | - | - | - | 3,700 | - | - | - | - | - | ||||||||||
|
Total Current Liabilities
|
(381,936) | 1,681 | 1,379 | 2,024 | 7,284 | 1,735 | 1,436 | 1,196 | 1,647 | 1,602 | ||||||||||
|
Noncurrent Liabilities
|
||||||||||||||||||||
|
Mortgage payable
|
- | 128,042 | 106,667 | 194,195 | 364,870 | 137,726 | 137,632 | 108,900 | 154,218 | 128,133 | ||||||||||
|
Total Noncurrent Liabilities
|
- | 128,042 | 106,667 | 194,195 | 364,870 | 137,726 | 137,632 | 108,900 | 154,218 | 128,133 | ||||||||||
|
Total Liabilities
|
(381,936) | 129,723 | 108,046 | 196,218 | 372,154 | 139,461 | 139,068 | 110,096 | 155,865 | 129,736 | ||||||||||
|
Member's Equity
|
||||||||||||||||||||
|
Equity
|
||||||||||||||||||||
|
Members' Equity
|
- | 241,418 | 233,691 | 421,470 | 649,596 | 262,233 | 242,078 | 269,316 | 280,884 | 236,288 | ||||||||||
|
Retained Earnings (Accumulated Deficit)
|
32,691 | (26,806) | (39,172) | (19,720) | (65,198) | (26,425) | (31,367) | (29,758) | (26,131) | (43,038) | ||||||||||
|
Total Equity
|
32,691 | 214,612 | 194,519 | 401,750 | 584,398 | 235,809 | 210,710 | 239,558 | 254,753 | 193,250 | ||||||||||
|
Total Member's Equity
|
32,691 | 214,612 | 194,519 | 401,750 | 584,398 | 235,809 | 210,710 | 239,558 | 254,753 | 193,250 | ||||||||||
|
Total Liabilities & Members' Equity |
$
(349,245)
|
$
344,335
|
$
302,564
|
$
597,968
|
$
956,552
|
$
375,270
|
$
349,779
|
$
349,654
|
$
410,617
|
$
322,986
|
|
Description |
Ark7 Properties Advance LLC - Series #JVI51 | Ark7 Properties Advance LLC - Series #LOZV7 | Ark7 Properties Advance LLC - Series #NETKE | Ark7 Properties Advance LLC - Series #PJI26 | Ark7 Properties Advance LLC - Series #QXU34 | Ark7 Properties Advance LLC - Series #TPVS2 | Ark7 Properties Advance LLC - Series #UZMTK | Total | ||||||||||||
|
Assets |
||||||||||||||||||||
|
Current Assets
|
||||||||||||||||||||
|
Cash and cash equivalents
|
$
11,462
|
$
4,928
|
$
3,788
|
$
3,803
|
$
-
|
$
1,999
|
$
5,414
|
$
1,304,172
|
||||||||||||
|
Receivables
|
$
-
|
$
-
|
$
-
|
$
-
|
$
-
|
$
-
|
$
-
|
$
1,500
|
||||||||||||
|
Related party receivables
|
218,091 | 107,693 | 150,880 | 242,118 | (229) | 135,380 | 239,142 | 947,204 | ||||||||||||
|
Prepaid expenses
|
5,245 | 3,786 | 2,079 | 6,804 | 115 | 880 | 4,915 | 78,485 | ||||||||||||
|
Total Current Assets
|
234,798 | 116,408 | 156,747 | 252,725 | (114) | 138,258 | 249,471 | 2,331,361 | ||||||||||||
|
Noncurrent Assets
|
||||||||||||||||||||
|
Property, plant, and equipment
|
||||||||||||||||||||
|
Property, plant, and equipment - Cost
|
430,300 | 217,337 | 246,859 | 433,726 | - | 217,700 | 396,433 | 4,548,357 | ||||||||||||
|
Property, plant, and equipment - Accumulated Depreciation
|
(11,491) | (9,277) | (12,769) | (6,030) | - | (17,531) | (10,207) | (195,896) | ||||||||||||
|
Total Property, plant, and equipment
|
418,809 | 208,060 | 234,090 | 427,696 | - | 200,169 | 386,225 | 4,352,461 | ||||||||||||
|
Total Noncurrent Assets
|
418,809 | 208,060 | 234,090 | 427,696 | - | 200,169 | 386,225 | 4,352,461 | ||||||||||||
|
Total Assets |
653,607 | 324,468 | 390,837 | 680,421 | (114) | 338,427 | 635,696 | 6,683,822 | ||||||||||||
|
Liabilities & Members' Equity |
||||||||||||||||||||
|
Liabilities
|
||||||||||||||||||||
|
Current Liabilities
|
||||||||||||||||||||
|
Accounts payable and accrued liabilities
|
- | - | - | - | - | - | - | 90,574 | ||||||||||||
|
Current portion of mortgage payable
|
2,619 | 1,675 | 1,549 | 3,120 | - | 1,594 | 2,505 | 29,348 | ||||||||||||
|
Related party payables
|
- | - | - | 450,000 | - | - | 22,511 | (0) | ||||||||||||
|
Other liabilities, current
|
- | - | 1,450 | 2,000 | - | 5,280 | 2,000 | 14,430 | ||||||||||||
|
Total Current Liabilities
|
2,619 | 1,675 | 2,999 | 455,120 | - | 6,874 | 27,015 | 134,352 | ||||||||||||
|
Noncurrent Liabilities
|
||||||||||||||||||||
|
Mortgage payable
|
235,419 | 133,458 | 145,003 | 249,839 | - | 126,817 | 224,275 | 2,575,193 | ||||||||||||
|
Total Noncurrent Liabilities
|
235,419 | 133,458 | 145,003 | 249,839 | - | 126,817 | 224,275 | 2,575,193 | ||||||||||||
|
Total Liabilities
|
238,038 | 135,133 | 148,002 | 704,959 | - | 133,692 | 251,291 | 2,709,545 | ||||||||||||
|
Member's Equity
|
||||||||||||||||||||
|
Equity
|
||||||||||||||||||||
|
Members' Equity
|
459,159 | 238,073 | 256,981 | - | - | 237,759 | 436,323 | 4,465,268 | ||||||||||||
|
Retained Earnings (Accumulated Deficit)
|
(43,589) | (48,738) | (14,146) | (24,538) | (114) | (33,024) | (51,918) | (490,991) | ||||||||||||
|
Total Equity
|
415,570 | 189,335 | 242,835 | (24,538) | (114) | 204,736 | 384,405 | 3,974,277 | ||||||||||||
|
Total Member's Equity
|
415,570 | 189,335 | 242,835 | (24,538) | (114) | 204,736 | 384,405 | 3,974,277 | ||||||||||||
|
Total Liabilities & Members' Equity |
$
653,607
|
$
324,468
|
$
390,837
|
$
680,421
|
$
(114)
|
$
338,427
|
$
635,696
|
$
6,683,822
|
F-7
Ark7 Properties Advance LLC
Consolidated and consolidating Statement of Income
For the six months ended June 30, 2026
|
Description |
Ark7 Properties Advance LLC | Ark7 Properties Advance LLC - Series #6MWZZ | Ark7 Properties Advance LLC - Series #8S8XK | Ark7 Properties Advance LLC - Series #9WWAJ | Ark7 Properties Advance LLC - Series #BULMO | Ark7 Properties Advance LLC - Series #DJGLA | Ark7 Properties Advance LLC - Series #ESMYO | Ark7 Properties Advance LLC - Series #HEEMV | Ark7 Properties Advance LLC - Series #ICBTL | Ark7 Properties Advance LLC - Series #IDUG0 | ||||||||||
|
Net Income (Loss) |
||||||||||||||||||||
|
Gross Profit (Loss)
|
||||||||||||||||||||
|
Rental Income
|
$
-
|
$
9,000
|
$
8,400
|
$
23,076
|
$
19,400
|
$
16,213
|
$
4,666
|
$
16,037
|
$
17,384
|
$
8,400
|
||||||||||
|
Other rental fees
|
- | - | - | - | 240 | - | 400 | - | - | - | ||||||||||
|
Total Gross Profit (Loss)
|
- | 9,000 | 8,400 | 23,076 | 19,640 | 16,213 | 5,066 | 16,037 | 17,384 | 8,400 | ||||||||||
|
Operating Expenses
|
||||||||||||||||||||
|
General and administrative expenses
|
25 | 1,154 | 852 | 3,568 | 1,564 | 6,841 | 2,813 | 8,157 | 7,872 | 22,247 | ||||||||||
|
Depreciation and amortization expenses
|
- | 3,572 | 3,175 | 4,319 | 9,264 | 3,740 | 3,432 | 3,746 | 3,967 | 3,169 | ||||||||||
|
Property tax and state fee
|
300 | 2,806 | 2,490 | 5,047 | 6,116 | 2,276 | 2,249 | 2,207 | 1,605 | 2,491 | ||||||||||
|
Total Operating Expenses
|
325 | 7,532 | 6,516 | 12,933 | 16,944 | 12,858 | 8,494 | 14,111 | 13,444 | 27,907 | ||||||||||
|
Operating Income (Loss)
|
(325) | 1,468 | 1,884 | 10,143 | 2,696 | 3,355 | (3,428) | 1,926 | 3,940 | (19,507) | ||||||||||
|
Other Income (Loss)
|
||||||||||||||||||||
|
Interest income, related party
|
(82,766) | 2,687 | 2,298 | 9,398 | 18,314 | 6,136 | 6,669 | 3,447 | 4,927 | 2,774 | ||||||||||
|
Interest expense
|
- | (2,126) | (1,963) | (7,393) | (14,557) | (4,671) | (5,247) | (3,084) | (4,393) | (2,569) | ||||||||||
|
Interest expense, related party
|
23,150 | - | - | - | - | - | - | - | - | - | ||||||||||
|
Other income (expense)
|
- | - | - | - | - | - | - | - | - | - | ||||||||||
|
Total Other Income (Loss)
|
(59,616) | 561 | 334 | 2,005 | 3,757 | 1,465 | 1,423 | 363 | 534 | 205 | ||||||||||
|
Total Net Income (Loss) |
$
(59,941)
|
$
2,029
|
$
2,218
|
$
12,147
|
$
6,453
|
$
4,820
|
$
(2,005)
|
$
2,289
|
$
4,474
|
$
(19,302)
|
|
Description |
Ark7 Properties Advance LLC - Series #JVI51 | Ark7 Properties Advance LLC - Series #LOZV7 | Ark7 Properties Advance LLC - Series #NETKE | Ark7 Properties Advance LLC - Series #PJI26 | Ark7 Properties Advance LLC - Series #QXU34 | Ark7 Properties Advance LLC - Series #TPVS2 | Ark7 Properties Advance LLC - Series #UZMTK | Total | ||||||||||||
|
Net Income (Loss) |
||||||||||||||||||||
|
Gross Profit (Loss)
|
||||||||||||||||||||
|
Rental Income
|
$
15,900
|
$
9,000
|
$
10,470
|
$
10,639
|
$
-
|
$
13,755
|
$
15,635
|
$
197,974
|
||||||||||||
|
Other rental fees
|
- | - | - | - | - | - | - | 640 | ||||||||||||
|
Total Gross Profit (Loss)
|
15,900 | 9,000 | 10,470 | 10,639 | - | 13,755 | 15,635 | 198,614 | ||||||||||||
|
Operating Expenses
|
||||||||||||||||||||
|
General and administrative expenses
|
(531) | 1,118 | 852 | 1,073 | 114 | 4,162 | 35,161 | 97,043 | ||||||||||||
|
Depreciation and amortization expenses
|
6,288 | 3,177 | 3,675 | 6,030 | - | 3,293 | 5,806 | 66,651 | ||||||||||||
|
Property tax and state fee
|
5,912 | 2,599 | 2,045 | 4,454 | - | 2,472 | 5,192 | 50,261 | ||||||||||||
|
Total Operating Expenses
|
11,669 | 6,894 | 6,571 | 11,558 | 114 | 9,928 | 46,158 | 213,955 | ||||||||||||
|
Operating Income (Loss)
|
4,231 | 2,106 | 3,899 | (919) | (114) | 3,828 | (30,524) | (15,341) | ||||||||||||
|
Other Income (Loss)
|
||||||||||||||||||||
|
Interest income, related party
|
7,268 | 2,900 | 7,144 | - | - | 1,850 | 6,952 | 0 | ||||||||||||
|
Interest expense
|
(6,372) | (2,686) | (5,620) | (44) | - | (1,495) | (6,095) | (68,315) | ||||||||||||
|
Interest expense, related party
|
- | - | - | (21,575) | - | - | (1,574) | (0) | ||||||||||||
|
Other income (expense)
|
- | - | - | - | - | - | - | - | ||||||||||||
|
Total Other Income (Loss)
|
896 | 214 | 1,524 | (21,620) | - | 355 | (717) | (68,315) | ||||||||||||
|
Total Net Income (Loss) |
$
5,128
|
$
2,320
|
$
5,423
|
$
(22,538)
|
$
(114)
|
$
4,183
|
$
(31,241)
|
$
(83,656)
|
F-8
Ark7 Properties Advance LLC
Consolidated and consolidating Statement of Members' Equity
For the six months ended June 30, 2026
|
Description |
Ark7 Properties Advance LLC | Ark7 Properties Advance LLC - Series #6MWZZ | Ark7 Properties Advance LLC - Series #8S8XK | Ark7 Properties Advance LLC - Series #9WWAJ | Ark7 Properties Advance LLC - Series #BULMO | Ark7 Properties Advance LLC - Series #DJGLA | Ark7 Properties Advance LLC - Series #ESMYO | Ark7 Properties Advance LLC - Series #HEEMV | Ark7 Properties Advance LLC - Series #ICBTL | Ark7 Properties Advance LLC - Series #IDUG0 | ||||||||||
|
Balance at January 01, 2026 |
$
92,631
|
$
215,930
|
$
197,665
|
$
406,145
|
$
592,626
|
$
240,598
|
$
216,787
|
$
244,951
|
$
256,727
|
$
218,021
|
||||||||||
|
Equity Contribution |
- | 2,450 | - | 341 | 1,514 | - | - | - | 2,612 | 10 | ||||||||||
|
Net Income (Loss) |
(59,941) | 2,029 | 2,218 | 12,147 | 6,453 | 4,820 | (2,005) | 2,289 | 4,474 | (19,302) | ||||||||||
|
Distribution |
- | (5,797) | (5,364) | (16,884) | (16,195) | (9,610) | (4,072) | (7,682) | (9,060) | (5,478) | ||||||||||
|
Balance at June 30, 2026 |
$
32,691
|
$
214,612
|
$
194,519
|
$
401,750
|
$
584,398
|
$
235,809
|
$
210,710
|
$
239,558
|
$
254,753
|
$
193,250
|
|
Description |
Ark7 Properties Advance LLC - Series #JVI51 | Ark7 Properties Advance LLC - Series #LOZV7 | Ark7 Properties Advance LLC - Series #NETKE | Ark7 Properties Advance LLC - Series #PJI26 | Ark7 Properties Advance LLC - Series #QXU34 | Ark7 Properties Advance LLC - Series #TPVS2 | Ark7 Properties Advance LLC - Series #UZMTK | Total | ||||||||||||
|
Balance at January 01, 2026 |
$
423,084
|
$
192,541
|
$
246,579
|
$
(2,000)
|
$
-
|
$
207,720
|
$
154,970
|
$
3,904,975
|
||||||||||||
|
Equity Contribution |
- | 16 | - | - | - | - | 272,420 | 279,363 | ||||||||||||
|
Net Income (Loss) |
5,128 | 2,320 | 5,423 | (22,538) | (114) | 4,183 | (31,241) | (83,656) | ||||||||||||
|
Distribution |
(12,642) | (5,543) | (9,167) | - | - | (7,167) | (11,745) | (126,405) | ||||||||||||
|
Balance at June 30, 2026 |
$
415,570
|
$
189,335
|
$
242,835
|
$
(24,538)
|
$
(114)
|
$
204,736
|
$
384,405
|
$
3,974,277
|
F-9
Ark7 Properties Advance LLC
Consolidated and consolidating Statement of Cash Flows
For the six months ended June 30, 2026
|
Description |
Ark7 Properties Advance LLC | Ark7 Properties Advance LLC - Series #6MWZZ | Ark7 Properties Advance LLC - Series #8S8XK | Ark7 Properties Advance LLC - Series #9WWAJ | Ark7 Properties Advance LLC - Series #BULMO | Ark7 Properties Advance LLC - Series #DJGLA | Ark7 Properties Advance LLC - Series #ESMYO | Ark7 Properties Advance LLC - Series #HEEMV | Ark7 Properties Advance LLC - Series #ICBTL | Ark7 Properties Advance LLC - Series #IDUG0 | ||||||||||
|
Cash Flows From Operating Activities |
||||||||||||||||||||
|
Net Income (Loss)
|
$
(59,941)
|
$
2,029
|
$
2,218
|
$
12,147
|
$
6,453
|
$
4,820
|
$
(2,005)
|
$
2,289
|
$
4,474
|
$
(19,302)
|
||||||||||
|
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by (Used in) Operating Activities
|
||||||||||||||||||||
|
Depreciation and amortization
|
- | 3,572 | 3,175 | 4,319 | 9,264 | 3,740 | 3,432 | 3,746 | 3,967 | 3,169 | ||||||||||
|
Total Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by (Used in) Operating Activities |
||||||||||||||||||||
|
(Increase) decrease in operating assets, net of effects of businesses acquired
|
||||||||||||||||||||
|
Accounts receivable
|
(1,500) | - | - | - | - | - | - | - | - | - | ||||||||||
|
Related party receivables
|
(235,810) | (124,774) | (101,039) | 2,155 | (2,721) | 19,097 | 3,849 | (86,433) | (135,086) | (99,702) | ||||||||||
|
Prepaid expenses
|
- | (3,916) | (1,754) | (3,920) | 1,906 | (7,152) | 1,022 | (8,898) | (8,250) | (1,777) | ||||||||||
|
Increase (decrease) in operating liabilities, net of effects of businesses acquired
|
||||||||||||||||||||
|
Accounts payable and accrued expenses
|
55,385 | - | - | - | - | - | - | - | - | - | ||||||||||
|
Related party payables
|
1,058,168 | (4,687) | (4,995) | - | - | - | - | (4,728) | (5,991) | (4,687) | ||||||||||
|
Other liabilities
|
- | - | - | - | - | - | (1,600) | - | - | - | ||||||||||
|
Net Cash Provided by (Used in) Operating Activities |
816,303 | (127,776) | (102,396) | 14,702 | 14,901 | 20,505 | 4,698 | (94,024) | (140,885) | (122,300) | ||||||||||
|
Cash Flows from Investing Activities |
||||||||||||||||||||
|
Payments received from related party loans and notes receivable
|
||||||||||||||||||||
|
Related party loans and notes receivable issued
|
||||||||||||||||||||
|
Purchase of property, plant, and equipment
|
- | (1,873) | (1,859) | - | - | - | - | (2,479) | (2,775) | (1,933) | ||||||||||
|
Cash Flows from Financing Activities |
||||||||||||||||||||
|
Proceeds from issuance of debt
|
134,371 | 112,999 | (952) | (1,680) | (687) | (675) | 114,771 | 161,789 | 134,384 | |||||||||||
|
Payments for debt issuance costs
|
||||||||||||||||||||
|
Repayment of debt
|
||||||||||||||||||||
|
Proceeds from issuance of related party debt
|
||||||||||||||||||||
|
Repayment of related party debt
|
- | |||||||||||||||||||
|
Proceeds from private offerings
|
- | 2,450 | - | 341 | 1,514 | - | - | - | 2,612 | 10 | ||||||||||
|
Distributions to partners
|
- | (5,797) | (5,364) | (16,884) | (16,195) | (9,610) | (4,072) | (7,682) | (9,060) | (5,478) | ||||||||||
|
Net Cash Provided by (Used in) Financing Activities |
- | 131,024 | 107,635 | (17,494) | (16,361) | (10,298) | (4,747) | 107,089 | 155,340 | 128,916 | ||||||||||
|
Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash |
816,303 | 1,375 | 3,381 | (2,793) | (1,460) | 10,207 | (49) | 10,586 | 11,680 | 4,683 | ||||||||||
|
Cash, Cash Equivalents, and Restricted Cash at January 01, 2026 |
404,894 | (1,099) | - | 7,456 | 6,588 | 1,026 | - | - | - | - | ||||||||||
|
Cash, Cash Equivalents, and Restricted Cash at June 30, 2026 |
1,221,196 | 276 | 3,381 | 4,663 | 5,128 | 11,233 | (49) | 10,586 | 11,680 | 4,683 | ||||||||||
|
Supplemental Cash Flow information |
||||||||||||||||||||
|
Cash Paid During the Year for
|
||||||||||||||||||||
|
Interest
|
$
-
|
$
2,126
|
$
1,963
|
$
7,393
|
$
14,557
|
$
4,671
|
$
5,247
|
$
3,084
|
$
4,393
|
$
2,569
|
|
Description |
Ark7 Properties Advance LLC - Series #JVI51 | Ark7 Properties Advance LLC - Series #LOZV7 | Ark7 Properties Advance LLC - Series #NETKE | Ark7 Properties Advance LLC - Series #PJI26 | Ark7 Properties Advance LLC - Series #QXU34 | Ark7 Properties Advance LLC - Series #TPVS2 | Ark7 Properties Advance LLC - Series #UZMTK | Total | ||||||||||||
|
Cash Flows From Operating Activities |
||||||||||||||||||||
|
Net Income (Loss)
|
$
5,128
|
$
2,320
|
$
5,423
|
$
(22,538)
|
$
(114)
|
$
4,183
|
$
(31,241)
|
$
(83,656)
|
||||||||||||
|
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by (Used in) Operating Activities
|
||||||||||||||||||||
|
Depreciation and amortization
|
6,288 | 3,177 | 3,675 | 6,030 | - | 3,293 | 5,806 | 66,651 | ||||||||||||
|
Total Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by (Used in) Operating Activities |
||||||||||||||||||||
|
(Increase) decrease in operating assets, net of effects of businesses acquired
|
||||||||||||||||||||
|
Accounts receivable
|
- | - | - | - | - | - | - | (1,500) | ||||||||||||
|
Related party receivables
|
(220,381) | (125,841) | 3,961 | (244,347) | 229 | (126,580) | (236,153) | (1,709,576) | ||||||||||||
|
Prepaid expenses
|
(2,857) | (2,324) | (915) | (6,575) | (115) | (152) | (2,320) | (47,998) | ||||||||||||
|
Increase (decrease) in operating liabilities, net of effects of businesses acquired
|
||||||||||||||||||||
|
Accounts payable and accrued expenses
|
- | - | - | - | - | - | - | 55,385 | ||||||||||||
|
Related party payables
|
(7,422) | (5,404) | - | 442,859 | - | (6,135) | (222,203) | 1,234,777 | ||||||||||||
|
Other liabilities
|
- | - | - | 2,000 | - | 45 | (473) | (28) | ||||||||||||
|
Net Cash Provided by (Used in) Operating Activities |
(219,244) | (128,072) | 12,143 | 177,429 | - | (125,346) | (486,583) | (485,945) | ||||||||||||
|
Cash Flows from Investing Activities |
||||||||||||||||||||
|
Payments received from related party loans and notes receivable
|
||||||||||||||||||||
|
Related party loans and notes receivable issued
|
||||||||||||||||||||
|
Purchase of property, plant, and equipment
|
(2,956) | (1,966) | - | (433,726) | - | - | (2,897) | (452,464) | ||||||||||||
|
Cash Flows from Financing Activities |
||||||||||||||||||||
|
Proceeds from issuance of debt
|
245,376 | 140,492 | (728) | 260,100 | - | 134,512 | 234,704 | 1,668,776 | ||||||||||||
|
Payments for debt issuance costs
|
||||||||||||||||||||
|
Repayment of debt
|
||||||||||||||||||||
|
Proceeds from issuance of related party debt
|
||||||||||||||||||||
|
Repayment of related party debt
|
||||||||||||||||||||
|
Proceeds from private offerings
|
- | 16 | - | - | - | - | 272,420 | 279,363 | ||||||||||||
|
Distributions to partners
|
(12,642) | (5,543) | (9,167) | - | - | (7,167) | (11,745) | (126,405) | ||||||||||||
|
Net Cash Provided by (Used in) Financing Activities |
232,735 | 134,965 | (9,895) | 260,100 | - | 127,345 | 495,379 | 1,821,733 | ||||||||||||
|
Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash |
10,535 | 4,928 | 2,248 | 3,803 | - | 1,999 | 5,899 | 883,325 | ||||||||||||
|
Cash, Cash Equivalents, and Restricted Cash at January 01, 2026 |
928 | - | 1,540 | - | - | - | (485) | 420,847 | ||||||||||||
|
Cash, Cash Equivalents, and Restricted Cash at June 30, 2026 |
11,462 | 4,928 | 3,788 | 3,803 | - | 1,999 | 5,414 | 1,304,172 | ||||||||||||
|
Supplemental Cash Flow information |
||||||||||||||||||||
|
Cash Paid During the Year for
|
||||||||||||||||||||
|
Interest
|
$
6,372
|
$
2,686
|
$
5,620
|
$
44
|
$
-
|
$
1,495
|
$
6,095
|
$
68,315
|
F-10
ARK7 PROPERTIES ADVANCE LLC
NOTES TO THE CONSOLIDATED AND CONSOLIDATING FINANCIAL STATEMENTS
NOTE 1: ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
General Information
Ark7 Properties Advance LLC (the "APAL") is a Delaware series limited liability company wholly owned by Ark7 Inc. (the "Parent Company"). The APAL was formed on October 12, 2023, in accordance with the Limited Liability Company Act (LLCA) of the state of Delaware. The APAL has registered 15 Series Delaware limited liability companies (the "Series Companies"), each of which will be used as an investment vehicle that intends to enable investors to own fractional ownership of a specific rental property. This lowers the cost of entry and minimizes the time commitment for real estate investing. An investment in the APAL entitles the investor to the potential economic benefits normally associated with direct property ownership while requiring no investor involvement in asset or property management.
|
Series |
Carrier |
Property Address |
Registration Date |
|||
|
TPVS2 |
Chicago-C4 |
20 N State St, Unit 307, Chicago, IL 60602 |
October 12, 2023 |
|||
|
ESMYO |
DFW-S16 |
177 E Sweden St, Walnut Springs, TX 76690 |
July 26, 2024 |
|||
|
6MWZZ |
DFW-S17 |
112 W Sweden St, Walnut Springs, TX 76690 |
July 26, 2024 |
|||
|
ICBTL |
Atlanta-C8 |
215 Piedmont Ave NE, Unit 1503, Atlanta, GA 30308 |
July 30, 2024 |
|||
|
NETKE |
Atlanta-T5 |
1986 Old Dogwood, Jonesboro, GA 30238 |
July 30, 2024 |
|||
|
BULMO |
SoCal-S18 |
27308 Barre Dr, Menifee, CA 92584 |
July 30, 2024 |
|||
|
DJGLA |
Atlanta-C10 |
215 Piedmont Ave NE, #902, Atlanta, GA 30308 |
August 30, 2024 |
|||
|
HEEMV |
Atlanta-C9 |
215 Piedmont Ave NE, #609, Atlanta, GA 30308 |
August 30, 2024 |
|||
|
8S8XK |
DFW-T6 |
202 Henderson St, Bonham, TX 75418 |
December 18, 2024 |
|||
|
IDUG0 |
DFW-T7 |
204 Henderson St, Bonham, TX 75418 |
December 18, 2024 |
|||
|
LOZV7 |
DFW-T8 |
208 Henderson St, Bonham, TX 75418 |
December 18, 2024 |
|||
|
9WWAJ |
DFW-S19 |
1009 Hanover Dr, Forney, TX 75126 |
February 5, 2025 |
|||
|
JVI51 |
DFW-S20 |
521 Big Horn Pass, Denton, TX 76210 |
July 7, 2025 |
|||
|
UZMTK |
DFW-S21 |
3513 San Lucas Ln, Denton, TX 76208 |
July 7, 2025 |
|||
|
PJI26 |
DFW-S22 |
2705 Willow Ln, Melissa, TX 75454 |
December 16, 2025 |
Management's Plan and Going Concerns
The accompanying consolidated and consolidating financial statements have been prepared under the assumption that APAL will continue as a going concern. While APAL has faced operating losses and has not yet reached a level of revenue sufficient to cover its operating costs, management continued to raise new capital, with capital contributions of $279,363 during the six months ended June 30, 2026. For the six months ended June 30, 2026, APAL incurred a net loss of $83,656, compared with a net loss of $147,985 for the six months ended June 30, 2025, reflecting higher rental income and lower general and administrative expenses, partly offset by interest expense on new mortgage loans.
Although recurring operational challenges remain, management is focused on addressing these with a proactive approach. The Company recognizes that achieving long-term financial stability requires strategic improvements in operational performance, and it is fully committed to executing plans that will lead to sustained profitability. The accompanying financial statements have been prepared without adjustments based on these ongoing efforts, which are aimed at ensuring the Company's long-term success. As of June 30, 2026 and December 31, 2025, APAL's accumulated deficit amounted to $490,991 and $407,335, respectively.
These conditions highlight certain challenges that may create uncertainty regarding APAL's ability to continue as a going concern. However, the company is actively addressing these factors and is well-positioned to overcome them. These financial statements do not include any adjustments that might result from the outcome of these uncertainties.
F-11
Statement of compliance
The accompanying consolidated and consolidating financial statements are prepared in accordance with accounting principles generally accepted in the United States of America. The consolidated and consolidating financial statements include the accounts of the APAL and its Series Companies. All intercompany balances and transactions are eliminated in consolidation.
These consolidated and consolidating financial statements have been prepared under the historical cost convention, except for evaluating specific financial instruments carried at fair value.
The accompanying interim consolidated and consolidating financial statements are unaudited. In the opinion of management, all adjustments necessary in order to make the interim financial statements not misleading have been included.
Method of accounting
The consolidated and consolidating financial statement of the APAL is prepared on the accrual basis of accounting. It includes only those assets, liabilities, and results of operations that relate to the business of the APAL.
Use of estimates and assumptions
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. To the extent that there are material differences between these estimates and actual results, the APAL's financial condition or operating results will be materially affected. The APAL bases its estimates on past experience and other assumptions that the APAL believes are reasonable under the circumstances, and the APAL evaluates those estimates on an ongoing basis.
Functional and presentation currency
Items included in the APAL's consolidated financial statements are estimated using the currency that best reflects the economic substance of the underlying events and circumstances related to the APAL (the "functional currency"). The functional and presentation currency of the accompanying financial statements is US Dollars (the "USD").
Revenue recognition
Rental income is reported on a straight-line basis over the terms of the respective leases. The property rental income for the six months ended June 30, 2026 and 2025 was $197,974 and $120,975, respectively.
The concentration of credit risk
Financial instruments potentially subject the APAL to the concentration of credit risk, primarily cash and tenant receivables. The APAL places its cash with financial institutions, and its balances are insured by the Federal Deposit Insurance Corporation up to $250,000. At various times, the APAL had a cash balance over the insured amount.
Fair value measurements
FASB ASC 820, "Fair Value Measurements" defines fair value for certain financial and nonfinancial assets and liabilities that are recorded at fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. It requires that an entity measure its financial instruments to base fair value on the exit price, maximize the use of observable units and minimize the use of unobservable inputs to determine the exit price. It establishes a hierarchy which prioritizes the inputs to valuation techniques used to measure fair value. This hierarchy increases the consistency and comparability of fair value measurements and related disclosures by maximizing the use of observable inputs and minimizing the use of unobservable inputs by requiring that observable inputs be used when available.
Observable inputs are inputs that reflect the assumptions market participants would use in pricing the assets or liabilities based on market data obtained from sources independent of the APAL. Unobservable inputs are inputs that reflect the APAL's own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy prioritizes the inputs into three broad levels based on the reliability of the inputs as follows:
Level 1 - Inputs are quoted prices in active markets for identical assets or liabilities that the APAL has the ability to access at the measurement date. Valuation of these instruments does not require a high degree of judgment as the valuations are based on quoted prices in active markets that are readily and regularly available.
Level 2 - Inputs other than quoted prices in active markets that are either directly or indirectly observable as of the measurement date, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
Level 3 - Valuations based on inputs that are unobservable and not corroborated by market data. The fair value for such assets and liabilities is generally determined using pricing models, discounted cash flow methodologies, or similar techniques that incorporate the assumptions a market participant would use in pricing the asset or liability.
The carrying values of certain assets and liabilities of the APAL approximate fair value due to their either relatively short maturities and/or consistency with current market rates.
F-12
Property, plant, and equipment
Land is carried at cost. Building, leasehold improvements, furniture, fixtures, and equipment are carried at cost, less accumulated depreciation and amortization. The building, furniture, fixtures, and equipment are depreciated using the straight-line method over the estimated useful lives of the assets. The cost of leasehold improvements is amortized using the straight-line method over the terms of the related leases. Repairs and maintenance are expensed when incurred.
Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The recoverability of long-lived assets is assessed by a comparison of the carrying amount of the asset to the estimated future undiscounted net cash flows expected to be generated by the asset or group of assets. If estimated future undiscounted net cash flows are less than the carrying amount of the asset or group of assets, the asset is considered impaired and an expense is recorded in an amount required to reduce the carrying amount of the asset to its then fair value. Fair value is generally determined from estimated discounted future net cash flows (for assets held for use) or net realizable value (for assets held for sale). For the six months ended June 30, 2026 and 2025, the APAL has not recognized any impairment losses.
Property, plant and equipment consist of the following as of June 30, 2026 and December 31, 2025:
| June 30, 2026 | December 31, 2025 | |||
|
Buildings and improvements |
$
3,656,605
|
$
3,290,251
|
||
|
Furniture and fixtures |
$
2,374
|
$
2,374
|
||
|
Land |
$
889,378
|
$
803,268
|
||
|
Property, plant, and equipment, gross |
4,548,357 | 4,095,893 | ||
|
Less: Buildings and improvements - Accumulated Depreciation |
(195,401) | (129,909) | ||
|
Furniture and fixtures - Accumulated Depreciation |
(495) | (260) | ||
|
Property, plant, and equipment |
$
4,352,461
|
$
3,965,725
|
Estimated useful life for buildings and improvements is 27.5 years.
Depreciation expenses for the six months ended June 30, 2026 and 2025 was $66,651 and $45,405, respectively.
Lease accounting
According to the recently adopted Accounting Standards Updated ("ASU") No. 2016-02, Leases (Topic 842) ("ASU 2016- 02" or "ASC 842"), the APAL determines whether the arrangement is or contains a lease based on the unique facts and circumstances present in the arrangement. Leases with a term greater than one year are recognized on the balance sheet as right-of-use assets and current and non-current lease liabilities, as applicable. As of June 30, 2026 and December 31, 2025, the APAL had no long-term leases.
Income taxes
The APAL is taxed as a Limited Liability Company (LLC). Under these provisions, the APAL does not pay federal corporate income taxes on its taxable income. Instead, the shareholders are liable for individual federal and state income taxes on their respective shares of the APAL's taxable income.
Each series will be taxed as a C-corporation, with the profits taxed at the series level, independent of distributions to investors. For this offering of series interests to investors, each series will be taxed as a C-corporation, with the profits taxed at the series level, independent of distributions to investors. This means that the Series will owe corporate income tax on its profits and will report these profits and losses for tax purposes at the corporate level. The Series will distribute dividends to investors from the net profits after taxes, subject to our Managing Member's discretion regarding the retention of funds for future working capital needs. Consequently, investors may receive dividend distributions when profits are realized and taxes are paid at the corporate level, which could be independent of the actual cash distributions made to investors.
Distributions per unit
Distributions per unit of each Series, calculated as the distributions made by the Series during the period divided by its outstanding units, were as follows:
|
Series |
Six Months Ended June 30, 2026 |
Six Months Ended June 30, 2025 |
||
|
#TPVS2 |
$
2.71
|
$
2.38
|
||
|
#ESMYO |
$
1.57
|
$
3.03
|
||
|
#6MWZZ |
$
2.25
|
$
1.98
|
||
|
#ICBTL |
$
2.92
|
$
2.59
|
||
|
#NETKE |
$
3.22
|
$
2.91
|
||
|
#BULMO |
$
2.28
|
$
2.09
|
||
|
#DJGLA |
$
3.37
|
$
2.25
|
||
|
#HEEMV |
$
2.65
|
$
2.36
|
||
|
#8S8XK |
$
2.15
|
$
1.72
|
||
|
#IDUG0 |
$
2.19
|
$
0.80
|
||
|
#LOZV7 |
$
2.22
|
$
0.00
|
||
|
#9WWAJ |
$
3.75
|
$
0.00
|
||
|
#JVI51 |
$
0.53
|
$
0.00
|
||
|
#UZMTK |
$
0.52
|
$
0.00
|
||
|
#PJI26 |
$
0.00
|
$
0.00
|
F-13
NOTE 2: PROPERTY MANAGEMENT RESERVES
Multiple Series Companies have allocated funds to establish property management reserves. These funds are designed to mitigate future financial uncertainties associated with property-related expenses, including maintenance, repairs, enhancements, or unanticipated costs. The aim is to maintain the properties in satisfactory condition, prevent financial strain, and preclude the necessity for immediate supplementary contributions from investors or owners due to substantial, unexpected expenses.
As of June 30, 2026 and December 31, 2025, the balance of the property management reserve was $82,976 and $15,954, respectively, and is included in cash and cash equivalents on the accompanying balance sheet.
F-14
NOTE 3: MORTGAGE PAYABLES
Series #TPVS2
On April 24, 2026, the APAL - Series TPVS2 executed a Loan Agreement Secured by the Deed of Trust. According to the Loan Agreement, the APAL - Series TPVS2 borrowed $ 134,640.00 at 6.250% interest with a maturity of April 30, 2056. The outstanding balance of the Loan Payable - Mortgage as of June 30, 2026 was $128,411 and is included in current portion of mortgage payable and mortgage payable on the accompanying balance sheet. The interest expense incurred in 2026 was $1,495.
Series #ESMYO
On August 28, 2025, the APAL - Series ESMYO executed a Loan Agreement Secured by the Deed of Trust. According to the Loan Agreement, the APAL - Series ESMYO borrowed $ 143,000.00 at 7.375% interest with a maturity of August 31, 2055. The outstanding balance of the Loan Payable - Mortgage as of June 30, 2026 was $139,068 and is included in current portion of mortgage payable and mortgage payable on the accompanying balance sheet. The interest expense incurred in 2026 was $5,247.
Series #6MWZZ
On March 27, 2026, the APAL - Series 6MWZZ executed a Loan Agreement Secured by the Deed of Trust. According to the Loan Agreement, the APAL - Series 6MWZZ borrowed $ 134,640.00 at 5.990% interest with a maturity of March 31, 2056. The outstanding balance of the Loan Payable - Mortgage as of June 30, 2026 was $129,723 and is included in current portion of mortgage payable and mortgage payable on the accompanying balance sheet. The interest expense incurred in 2026 was $2,126.
Series #BULMO
On June 10, 2025, the APAL - Series BULMO executed a Loan Agreement Secured by the Deed of Trust. According to the Loan Agreement, the APAL - Series BULMO borrowed $ 378,000.00 at 7.750% interest with a maturity of June 30, 2055. The outstanding balance of the Loan Payable - Mortgage as of June 30, 2026 was $368,454 and is included in current portion of mortgage payable and mortgage payable on the accompanying balance sheet. The interest expense incurred in 2026 was $14,557.
Series #ICBTL
On February 11, 2026, the APAL - Series ICBTL executed a Loan Agreement Secured by the Deed of Trust. According to the Loan Agreement, the APAL - Series ICBTL borrowed $ 162,180.00 at 7.125% interest with a maturity of February 29, 2056. The outstanding balance of the Loan Payable - Mortgage as of June 30, 2026 was $155,865 and is included in current portion of mortgage payable and mortgage payable on the accompanying balance sheet. The interest expense incurred in 2026 was $4,393.
Series #NETKE
On July 8, 2025, the APAL - Series NETKE executed a Loan Agreement Secured by the Deed of Trust. According to the Loan Agreement, the APAL - Series NETKE borrowed $ 153,300.00 at 7.375% interest with a maturity of July 31, 2055. The outstanding balance of the Loan Payable - Mortgage as of June 30, 2026 was $146,552 and is included in current portion of mortgage payable and mortgage payable on the accompanying balance sheet. The interest expense incurred in 2026 was $5,620.
Series #DJGLA
On December 28, 2025, the APAL - Series DJGLA executed a Loan Agreement Secured by the Deed of Trust. According to the Loan Agreement, the APAL - Series DJGLA borrowed $ 146,880.00 at 6.375% interest with a maturity of December 31, 2055. The outstanding balance of the Loan Payable - Mortgage as of June 30, 2026 was $139,461 and is included in current portion of mortgage payable and mortgage payable on the accompanying balance sheet. The interest expense incurred in 2026 was $4,671.
Series #HEEMV
On February 11, 2026, the APAL - Series HEEMV executed a Loan Agreement Secured by the Deed of Trust. According to the Loan Agreement, the APAL - Series HEEMV borrowed $ 115,056.00 at 6.999% interest with a maturity of February 29, 2056. The outstanding balance of the Loan Payable - Mortgage as of June 30, 2026 was $110,096 and is included in current portion of mortgage payable and mortgage payable on the accompanying balance sheet. The interest expense incurred in 2026 was $3,084.
Series #8S8XK
On February 19, 2026, the APAL - Series 8S8XK executed a Loan Agreement Secured by the Deed of Trust. According to the Loan Agreement, the APAL - Series 8S8XK borrowed $ 113,220.00 at 6.125% interest with a maturity of March 31, 2056. The outstanding balance of the Loan Payable - Mortgage as of June 30, 2026 was $108,046 and is included in current portion of mortgage payable and mortgage payable on the accompanying balance sheet. The interest expense incurred in 2026 was $1,963.
Series #IDUG0
On March 11, 2026, the APAL - Series IDUG0 executed a Loan Agreement Secured by the Deed of Trust. According to the Loan Agreement, the APAL - Series IDUG0 borrowed $ 134,640.00 at 6.250% interest with a maturity of March 31, 2056. The outstanding balance of the Loan Payable - Mortgage as of June 30, 2026 was $129,735 and is included in current portion of mortgage payable and mortgage payable on the accompanying balance sheet. The interest expense incurred in 2026 was $2,569.
Series #LOZV7
On March 11, 2026, the APAL - Series LOZV7 executed a Loan Agreement Secured by the Deed of Trust. According to the Loan Agreement, the APAL - Series LOZV7 borrowed $ 140,760.00 at 6.250% interest with a maturity of March 31, 2056. The outstanding balance of the Loan Payable - Mortgage as of June 30, 2026 was $135,133 and is included in current portion of mortgage payable and mortgage payable on the accompanying balance sheet. The interest expense incurred in 2026 was $2,686.
Series #9WWAJ
On August 20, 2025, the APAL - Series 9WWAJ executed a Loan Agreement Secured by the Deed of Trust. According to the Loan Agreement, the APAL - Series 9WWAJ borrowed $ 201,500.00 at 7.375% interest with a maturity of August 31, 2055. The outstanding balance of the Loan Payable - Mortgage as of June 30, 2026 was $196,219 and is included in current portion of mortgage payable and mortgage payable on the accompanying balance sheet. The interest expense incurred in 2026 was $7,393.
Series #UZMTK
On February 12, 2026, the APAL - Series UZMTK executed a Loan Agreement Secured by the Deed of Trust. According to the Loan Agreement, the APAL - Series UZMTK borrowed $ 235,300.00 at 6.875% interest with a maturity of February 29, 2056. The outstanding balance of the Loan Payable - Mortgage as of June 30, 2026 was $226,780 and is included in current portion of mortgage payable and mortgage payable on the accompanying balance sheet. The interest expense incurred in 2026 was $6,095.
Series #JVI51
On February 12, 2026, the APAL - Series JVI51 executed a Loan Agreement Secured by the Deed of Trust. According to the Loan Agreement, the APAL - Series JVI51 borrowed $ 246,000.00 at 6.875% interest with a maturity of February 29, 2056. The outstanding balance of the Loan Payable - Mortgage as of June 30, 2026 was $238,038 and is included in current portion of mortgage payable and mortgage payable on the accompanying balance sheet. The interest expense incurred in 2026 was $6,372.
Series #PJI26
On June 25, 2026, the APAL - Series PJI26 executed a Loan Agreement Secured by the Deed of Trust. According to the Loan Agreement, the APAL - Series PJI26 borrowed $ 260,100.00 at 6.125% interest with a maturity of June 30, 2056. The outstanding balance of the Loan Payable - Mortgage as of June 30, 2026 was $252,959 and is included in current portion of mortgage payable and mortgage payable on the accompanying balance sheet. The interest expense incurred in 2026 was $44.
Mortgage interest expenses for the six months ended June 30, 2026 was $68,315.
| June 30, 2026 | June 30, 2025 | |||
|
Current Portion of Mortgage Payable |
$
29,348
|
$
12,480
|
Maturities of the mortgage payable are as follows (excluding the net of the finance cost):
|
Year |
Amount |
|
|
2027 |
29,348 | |
|
2028 |
31,404 | |
|
2029 |
33,604 | |
|
2030 |
35,961 | |
|
2031 |
38,483 | |
|
Thereafter |
2,520,042 | |
|
Total |
$
2,688,842
|
F-15
NOTE 4: TRANSACTIONS WITH RELATED PARTIES
Amounts due from / (to) Affiliate
The Parent Company advances funds to APAL to cover property acquisition and administrative costs. These advances are non-interest bearing and are due on demand. The outstanding balance with the affiliate as of June 30, 2026 and December 31, 2025 amounted to $947,204 receivable and $526,159 receivable, respectively, and is presented under related party receivables in the accompanying balance sheet. The increase in the receivable during the six months ended June 30, 2026 was mainly due to net intercompany movements during the period.
F-16
Property sourcing fee and offering expenses reimbursement
Pursuant to the Operating Agreement the Asset Manager, as consideration for assisting in the sourcing of the Underlying Asset of a Series, to the extent not waived by the Managing Member in its sole discretion, will receive a 3.0% (of the maximum offering amount) Sourcing Fee. The sourcing fee is in connection with the search and negotiation of the property purchase as set forth in the Certificate of Designations for the Series.
The Parent Company assigns offering expenses to each series, which are then set as part of each series' intended Use of Proceeds. The parent company will be reimbursed a fixed amount for each series for offering expenses.
Series #6MWZZ
The property sourcing fee and offering expenses incurred in the six months ended June 30, 2026 was $0 and $0, respectively, and in the six months ended June 30, 2025 was $7,740 and $14,140, respectively.
Series #8S8XK
The property sourcing fee and offering expenses incurred in the six months ended June 30, 2026 was $0 and $0, respectively, and in the six months ended June 30, 2025 was $0 and $0, respectively.
Series #9WWAJ
The property sourcing fee and offering expenses incurred in the six months ended June 30, 2026 was $0 and $0, respectively, and in the six months ended June 30, 2025 was $0 and $0, respectively.
Series #BULMO
The property sourcing fee and offering expenses incurred in the six months ended June 30, 2026 was $0 and $0, respectively, and in the six months ended June 30, 2025 was $21,300 and $27,700, respectively.
Series #DJGLA
The property sourcing fee and offering expenses incurred in the six months ended June 30, 2026 was $0 and $0, respectively, and in the six months ended June 30, 2025 was $8,550 and $14,950, respectively.
Series #ESMYO
The property sourcing fee and offering expenses incurred in the six months ended June 30, 2026 was $0 and $0, respectively, and in the six months ended June 30, 2025 was $7,800 and $14,200, respectively.
Series #HEEMV
The property sourcing fee and offering expenses incurred in the six months ended June 30, 2026 was $0 and $0, respectively, and in the six months ended June 30, 2025 was $8,700 and $15,100, respectively.
Series #ICBTL
The property sourcing fee and offering expenses incurred in the six months ended June 30, 2026 was $0 and $0, respectively, and in the six months ended June 30, 2025 was $0 and $0, respectively.
Series #IDUG0
The property sourcing fee and offering expenses incurred in the six months ended June 30, 2026 was $7,500 and $13,900, respectively, and in the six months ended June 30, 2025 was $0 and $0, respectively.
Series #JVI51
The property sourcing fee and offering expenses incurred in the six months ended June 30, 2026 was $0 and $0, respectively, and in the six months ended June 30, 2025 was $0 and $0, respectively.
Series #LOZV7
The property sourcing fee and offering expenses incurred in the six months ended June 30, 2026 was $0 and $0, respectively, and in the six months ended June 30, 2025 was $0 and $0, respectively.
Series #NETKE
The property sourcing fee and offering expenses incurred in the six months ended June 30, 2026 was $0 and $0, respectively, and in the six months ended June 30, 2025 was $8,550 and $14,950, respectively.
Series #TPVS2
The property sourcing fee and offering expenses incurred in the six months ended June 30, 2026 was $0 and $0, respectively, and in the six months ended June 30, 2025 was $0 and $0, respectively.
F-17
Asset management fee
For services performed, the Series will pay an annual Asset Management Fee to the Asset Manager in respect of each fiscal year, 15% of any Free Cash Flows available for distribution pursuant to Article VII of the Operating Agreement. Any such amount will be paid at the same time as, and only if, a distribution is made from the Series to its Members.
Series #6MWZZ
The Series #6MWZZ has entered into an Asset Management Agreement with the Parent Company (the Asset Manager), the managing member of the Series #6MWZZ and shall reimburse the Asset Manager for any such expenses paid by the Asset Manager on behalf of the Series #6MWZZ together with a reasonable rate of interest (a rate no less than the Applicable Federal Rate (as defined in the Internal Revenue Code)) as may be imposed by the Asset Manager in its sole discretion ("Operating Expenses Reimbursement Obligation"). As of June 30, 2026 and December 31, 2025, the prepaid Asset Management Fee was $0 and $0, respectively. Asset Management Fee for the six months ended June 30, 2026 and 2025, was $630 and $469, respectively.
Series #8S8XK
The Series #8S8XK has entered into an Asset Management Agreement with the Parent Company (the Asset Manager), the managing member of the Series #8S8XK and shall reimburse the Asset Manager for any such expenses paid by the Asset Manager on behalf of the Series #8S8XK together with a reasonable rate of interest (a rate no less than the Applicable Federal Rate (as defined in the Internal Revenue Code)) as may be imposed by the Asset Manager in its sole discretion ("Operating Expenses Reimbursement Obligation"). As of June 30, 2026 and December 31, 2025, the prepaid Asset Management Fee was $0 and $0, respectively. Asset Management Fee for the six months ended June 30, 2026 and 2025, was $488 and $0, respectively.
Series #9WWAJ
The Series #9WWAJ has entered into an Asset Management Agreement with the Parent Company (the Asset Manager), the managing member of the Series #9WWAJ and shall reimburse the Asset Manager for any such expenses paid by the Asset Manager on behalf of the Series #9WWAJ together with a reasonable rate of interest (a rate no less than the Applicable Federal Rate (as defined in the Internal Revenue Code)) as may be imposed by the Asset Manager in its sole discretion ("Operating Expenses Reimbursement Obligation"). As of June 30, 2026 and December 31, 2025, the prepaid Asset Management Fee was $0 and $0, respectively. Asset Management Fee for the six months ended June 30, 2026 and 2025, was $1,615 and $1,077, respectively.
Series #BULMO
The Series #BULMO has entered into an Asset Management Agreement with the Parent Company (the Asset Manager), the managing member of the Series #BULMO and shall reimburse the Asset Manager for any such expenses paid by the Asset Manager on behalf of the Series #BULMO together with a reasonable rate of interest (a rate no less than the Applicable Federal Rate (as defined in the Internal Revenue Code)) as may be imposed by the Asset Manager in its sole discretion ("Operating Expenses Reimbursement Obligation"). As of June 30, 2026 and December 31, 2025, the prepaid Asset Management Fee was $0 and $0, respectively. Asset Management Fee for the six months ended June 30, 2026 and 2025, was $0 and $1,428, respectively.
Series #DJGLA
The Series #DJGLA has entered into an Asset Management Agreement with the Parent Company (the Asset Manager), the managing member of the Series #DJGLA and shall reimburse the Asset Manager for any such expenses paid by the Asset Manager on behalf of the Series #DJGLA together with a reasonable rate of interest (a rate no less than the Applicable Federal Rate (as defined in the Internal Revenue Code)) as may be imposed by the Asset Manager in its sole discretion ("Operating Expenses Reimbursement Obligation"). As of June 30, 2026 and December 31, 2025, the prepaid Asset Management Fee was $0 and $0, respectively. Asset Management Fee for the six months ended June 30, 2026 and 2025, was $0 and $0, respectively.
Series #ESMYO
The Series #ESMYO has entered into an Asset Management Agreement with the Parent Company (the Asset Manager), the managing member of the Series #ESMYO and shall reimburse the Asset Manager for any such expenses paid by the Asset Manager on behalf of the Series #ESMYO together with a reasonable rate of interest (a rate no less than the Applicable Federal Rate (as defined in the Internal Revenue Code)) as may be imposed by the Asset Manager in its sole discretion ("Operating Expenses Reimbursement Obligation"). As of June 30, 2026 and December 31, 2025, the prepaid Asset Management Fee was $0 and $0, respectively. Asset Management Fee for the six months ended June 30, 2026 and 2025, was $315 and $(112), respectively.
Series #HEEMV
The Series #HEEMV has entered into an Asset Management Agreement with the Parent Company (the Asset Manager), the managing member of the Series #HEEMV and shall reimburse the Asset Manager for any such expenses paid by the Asset Manager on behalf of the Series #HEEMV together with a reasonable rate of interest (a rate no less than the Applicable Federal Rate (as defined in the Internal Revenue Code)) as may be imposed by the Asset Manager in its sole discretion ("Operating Expenses Reimbursement Obligation"). As of June 30, 2026 and December 31, 2025, the prepaid Asset Management Fee was $0 and $0, respectively. Asset Management Fee for the six months ended June 30, 2026 and 2025, was $0 and $0, respectively.
Series #ICBTL
The Series #ICBTL has entered into an Asset Management Agreement with the Parent Company (the Asset Manager), the managing member of the Series #ICBTL and shall reimburse the Asset Manager for any such expenses paid by the Asset Manager on behalf of the Series #ICBTL together with a reasonable rate of interest (a rate no less than the Applicable Federal Rate (as defined in the Internal Revenue Code)) as may be imposed by the Asset Manager in its sole discretion ("Operating Expenses Reimbursement Obligation"). As of June 30, 2026 and December 31, 2025, the prepaid Asset Management Fee was $0 and $0, respectively. Asset Management Fee for the six months ended June 30, 2026 and 2025, was $0 and $0, respectively.
Series #IDUG0
The Series #IDUG0 has entered into an Asset Management Agreement with the Parent Company (the Asset Manager), the managing member of the Series #IDUG0 and shall reimburse the Asset Manager for any such expenses paid by the Asset Manager on behalf of the Series #IDUG0 together with a reasonable rate of interest (a rate no less than the Applicable Federal Rate (as defined in the Internal Revenue Code)) as may be imposed by the Asset Manager in its sole discretion ("Operating Expenses Reimbursement Obligation"). As of June 30, 2026 and December 31, 2025, the prepaid Asset Management Fee was $0 and $0, respectively. Asset Management Fee for the six months ended June 30, 2026 and 2025, was $490 and $0, respectively.
Series #JVI51
The Series #JVI51 has entered into an Asset Management Agreement with the Parent Company (the Asset Manager), the managing member of the Series #JVI51 and shall reimburse the Asset Manager for any such expenses paid by the Asset Manager on behalf of the Series #JVI51 together with a reasonable rate of interest (a rate no less than the Applicable Federal Rate (as defined in the Internal Revenue Code)) as may be imposed by the Asset Manager in its sole discretion ("Operating Expenses Reimbursement Obligation"). As of June 30, 2026 and December 31, 2025, the prepaid Asset Management Fee was $0 and $0, respectively. Asset Management Fee for the six months ended June 30, 2026 and 2025, was $(1,113) and $0, respectively.
Series #LOZV7
The Series #LOZV7 has entered into an Asset Management Agreement with the Parent Company (the Asset Manager), the managing member of the Series #LOZV7 and shall reimburse the Asset Manager for any such expenses paid by the Asset Manager on behalf of the Series #LOZV7 together with a reasonable rate of interest (a rate no less than the Applicable Federal Rate (as defined in the Internal Revenue Code)) as may be imposed by the Asset Manager in its sole discretion ("Operating Expenses Reimbursement Obligation"). As of June 30, 2026 and December 31, 2025, the prepaid Asset Management Fee was $0 and $0, respectively. Asset Management Fee for the six months ended June 30, 2026 and 2025, was $525 and $0, respectively.
Series #NETKE
The Series #NETKE has entered into an Asset Management Agreement with the Parent Company (the Asset Manager), the managing member of the Series #NETKE and shall reimburse the Asset Manager for any such expenses paid by the Asset Manager on behalf of the Series #NETKE together with a reasonable rate of interest (a rate no less than the Applicable Federal Rate (as defined in the Internal Revenue Code)) as may be imposed by the Asset Manager in its sole discretion ("Operating Expenses Reimbursement Obligation"). As of June 30, 2026 and December 31, 2025, the prepaid Asset Management Fee was $0 and $0, respectively. Asset Management Fee for the six months ended June 30, 2026 and 2025, was $0 and $0, respectively.
Series #PJI26
The Series #PJI26 has entered into an Asset Management Agreement with the Parent Company (the Asset Manager), the managing member of the Series #PJI26 and shall reimburse the Asset Manager for any such expenses paid by the Asset Manager on behalf of the Series #PJI26 together with a reasonable rate of interest (a rate no less than the Applicable Federal Rate (as defined in the Internal Revenue Code)) as may be imposed by the Asset Manager in its sole discretion ("Operating Expenses Reimbursement Obligation"). As of June 30, 2026 and December 31, 2025, the prepaid Asset Management Fee was $0 and $0, respectively. Asset Management Fee for the six months ended June 30, 2026 and 2025, was $745 and $0, respectively.
Series #TPVS2
The Series #TPVS2 has entered into an Asset Management Agreement with the Parent Company (the Asset Manager), the managing member of the Series #TPVS2 and shall reimburse the Asset Manager for any such expenses paid by the Asset Manager on behalf of the Series #TPVS2 together with a reasonable rate of interest (a rate no less than the Applicable Federal Rate (as defined in the Internal Revenue Code)) as may be imposed by the Asset Manager in its sole discretion ("Operating Expenses Reimbursement Obligation"). As of June 30, 2026 and December 31, 2025, the prepaid Asset Management Fee was $0 and $0, respectively. Asset Management Fee for the six months ended June 30, 2026 and 2025, was $414 and $432, respectively.
Series #UZMTK
The Series #UZMTK has entered into an Asset Management Agreement with the Parent Company (the Asset Manager), the managing member of the Series #UZMTK and shall reimburse the Asset Manager for any such expenses paid by the Asset Manager on behalf of the Series #UZMTK together with a reasonable rate of interest (a rate no less than the Applicable Federal Rate (as defined in the Internal Revenue Code)) as may be imposed by the Asset Manager in its sole discretion ("Operating Expenses Reimbursement Obligation"). As of June 30, 2026 and December 31, 2025, the prepaid Asset Management Fee was $0 and $0, respectively. Asset Management Fee for the six months ended June 30, 2026 and 2025, was $1,061 and $0, respectively.
F-18
NOTE 5: SUBSEQUENT EVENTS
Management has evaluated subsequent events through the date on the consolidated financial statements that were available to be issued, which is October 8, 2026 and has determined that there were no material subsequent events that require disclosure in these financial statements.
NOTE 6: APPROVAL OF CONSOLIDATED FINANCIAL STATEMENTS
The consolidated and consolidating financial statements have been approved by the management of the APAL and authorized for issue on October 8, 2026.
F-19
EXHIBIT INDEX
The documents listed in the Exhibit Index of this report are incorporated by reference or are filed with this report, in each case as indicated below.
____________________
* Previously Filed
26
SIGNATURES
Pursuant to the requirements of Regulation A, the issuer has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized in the State of California, on October 8, 2026.
Ark7 Properties Advance LLC a Delaware series limited liability company
|
By |
/s/ Ark7 Inc., a Delaware corporation |
|
|
Its: Managing Member |
||
|
By: |
/s/ Yizhen Zhao |
|
|
Name: |
Yizhen Zhao |
|
|
Title: |
President |
|
This report has been signed by the following persons in the capacities and on the dates indicated.
Ark7 Properties Advance LLC a Delaware series liability company
|
By |
/s/ Ark7 Inc., a Delaware corporation |
|
|
Its: Managing Member |
||
|
By: |
/s/ Yizhen Zhao |
|
|
Name: |
Yizhen Zhao |
|
|
Title: |
Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer of Ark7 Inc., Managing Member of Ark7 Properties Advance LLC |
|
|
Date: |
October 8, 2026 |
|
27
Ark7 Properties Advance LLC published this content on October 08, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on October 08, 2026 at 18:21 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]