Lend Academy Network Forum

Real Estate Crowdfunding => General Discussion => Topic started by: jheizer on December 04, 2017, 11:07:13 PM

Title: GroundFloor equity offering
Post by: jheizer on December 04, 2017, 11:07:13 PM
While I have no interest in buying in, I was bored tonight and they sent a reminder email so I skimmed the prospectus a bit.

Risks Related to Investing in Groundfloor Common Stock
Our auditor has expressed substantial doubt about our ability to continue as a going concern.
Our financial statements for the period ended December 31, 2016 include a going concern note from our auditors. We incurred
a net loss for the year ending December 31, 2016 and the six months ending June 30, 2017, and had an accumulated deficit of
$7,444,368 and $9,420,841 as of December 31, 2016 and June 30, 2017, respectively. In view of these matters, our ability to continue
as a going concern is dependent upon our ability to increase operations and to achieve a level of profitability. Groundfloor Finance’s
most recent audited financial statements also included a going concern note from its auditors due to its history of net losses.
Additionally, the financial statements for Groundfloor Real Estate 1, LLC, a subsidiary of Groundfloor Finance (“GRE 1”) for the
period ended December 31, 2016 include a going concern note from our auditors.

Daaaang.  They aren't doing so hot.
Title: Re: GroundFloor equity offering
Post by: Fred93 on December 05, 2017, 05:11:11 AM
Startups burn money.  Nothing unusual there.
Title: Re: GroundFloor equity offering
Post by: jheizer on December 05, 2017, 09:27:19 AM
Yeah one of these years I'll be able to fully wrap my head around that.  Being in the tech world you think it would be easy, but I'm in the stable do work for payment arena.  I guess it was just more than I expected.  When their follow up email was like we have 3.5M pledged I was kind of surprised, but now I see that would last them like 2 months.

I'll admit I was on my phone last night so just skimmed around a bit.  I'm far from the best at reading financial statements and interpreting them, but they are basically riding on the edge right?  Ignoring the loans and interest they are basically broke from an asset point right?  Unless the loan amount listed are the ones they fronted and then we'll fund.  That's not as bad.


Oh well, in any case.  Anyone buying shares? :)
Title: Re: GroundFloor equity offering
Post by: hessinger on December 05, 2017, 11:54:21 AM
I find their "Loans to developers" figure baffling. I must not be understanding what this actually means.

End 2016, the number is 12,694,297, yet on their "Our Results (https://www.groundfloor.us/notes/interest/new)" page, their origination volume cumulative is only 7,551,000.
Title: Re: GroundFloor equity offering
Post by: au88 on December 09, 2017, 08:27:23 AM
Investing in startups is risky, most fail. Still, I plan to do it as part of my broader strategy.
Title: Re: GroundFloor equity offering
Post by: hessinger on March 01, 2019, 11:17:22 PM
They put up a new offer in last few days. Worrisome.
Title: Re: GroundFloor equity offering
Post by: rawraw on March 04, 2019, 04:59:58 PM
The way they market these raises are a red flag to me.
Title: Re: GroundFloor equity offering
Post by: jheizer on March 04, 2019, 05:16:43 PM
Ha maybe you just got this email too, or maybe not, but received while reading this:
LIMITED TIME OFFER
This month only, earn 100 bonus shares
when you purchase 1,000 shares or more


Is there currently a stable winner in the RE space?
Title: Re: GroundFloor equity offering
Post by: jheizer on March 13, 2019, 02:22:46 PM
Emailing like once a week now about it.  Not giving me any more confidence.