USGV Annual review 2019

U.S Unemployment Rate

U.S GDP Growth Rate

Charlotte Region

• According to the U.S. Census Bureau, the population for the city of Charlotte rose by 20% from 2010 to 2018.That was triple the growth rate for the nation as a whole, and roughly double the rate of growth for the state of North Carolina

• Charlotte is the 16th most populous city in the U.S

• Charlotte is currently the third fastest growing major U.S city. If its population growth continues, Charlotte population is set to surge by 47% from 2010 to 2030, growing from 1.87 million to 2.74 million in just twenty years.

• According to UNC Charlotte's Economic Forecast, Gross State Product (GSP) for North Carolina is expected to reach $611.2 billion in 2020, up from $587 billion in 2019

New Ventures International, Ltd

Tax Loss Carryforwards - Federal

• Total Federal NOL : $20,993,235

Tax Loss Carryforwards - State

NC NOL : $9,240,798

SC NOL : $910,315

Northgate Shopping Center

• Ghassan purchased for $3.12M

• Estimated current market value $4.5M

• Annual property tax $29.8K

• 100% leased with delinquencies. Monthly gross rent of $25.7K

• Net profit of Devita Investments FY 2019 of $122K before the YE CAM reconciliation and audit adjustments

• The adjacent parcel of 2.2 acres to the shopping center is listed for $1,980,000

Northgate Shopping Center

Tax Lien Investments

• Total Invested: $91,764
• Total Return: $33,085

• ROI thus far on investment is 36%

• As of 12/31/19 we own 6 properties with a NBV of $8.5K. Approximate sales value is $14K
• One property on South Avenue is sold for $1.2K and is expected to close by the end of January

• Annual property tax $1K

• All lots are being actively marketed for sale

Tax Lien Investments

601 Investments

• Ghassan purchased for $5.491M

• Farm Income 2019 $40.6K

• Residential Income $12K

• Future site of the residential development

601 Investments

Long Farm Properties

• Farm Income 2019 $12.7K

• Future site of the residential development

Long Farm Properties

Fox Chase Development

• Partnership with Nest Homes

• Development began in 2015 and is scheduled to finish in August 2020

• 8 homes remaining to be closed in 2020 at a rate of 1 per month.

• Estimated ROI of 55%

Wilkinson Holdings

• Ghassan purchased for $1.34M

• After 3 years of actively being marketed and 6 potential buyers, sale was finally completed in December for $1.55M

• Gain was recorded of $135K

• The final tax return will be submitted in March 2020 for FY 2019 and the entity will be dissolved with the NC Secretary of State this month

Wilkinson Holdings

Cross State Motors

• After 6 years in business, the car dealership has been closed and collections were completed in October.

• The final tax return will be submitted in March 2020 for FY 2019 and the entity will be dissolved with the NC Secretary of State this month

• DMV records will be kept for 7 years.

Cross State Motors

Fairview Partners - Structure

Fairview Partners - Phase 1

• After signing of contract, developer will provide a map of the 200 acres for initial development within 90 days of signing this agreement based on engineering and soil samples.

• A detailed construction plan will be delivered to the owner within 9 months of signing the agreement (likely sooner).

• After the construction documents have been received (within 9 months of agreement being signed) the Newco will be set up for the 50/50 partnership. Newco will be a DRE for tax purposes and be a wholly owned subsidiary of USGV.

• Newco will be set up with the Owner as the sole member however after construction docs are received and payment made by developer, Owner shall transfer a 50% membership interest on Newco.

Fairview Partners - Phase 1

• Payment for the 50% interest will be 200 acres x 50% x $10,000 per acre = $1,000,000.

• Upon receipt of this $ 1 Million from the Developer, funds will be sent to Mr Nuqul, then each party will then contribute $250k into Newco as Operating Capital.

• Operating points:

1. Developer shall not receive a separate fee for its obligation under the agreement.

2. Both parties will approve the builders used in the development

3. Phase 1 will begin in 2020 and conclude in 2025.

4. Any funding needed for Phase 1 will be handled by the Developer and will likely involve property being used as collateral.

5. Owner will be involved in the financing decisions.

6. Owner will review job cost reports on a monthly basis, be involved with major decisions and review all cash disbursements.

7. All lot sales profits will be disbursed within 30 days of closing.

Fairview Partners - Phase 1 Timeline

Fairview Partners -JV Profit and Loss

Fairview Farms- Phase 2

• The real value in this project comes in Phase 2.

• Developer will have the first right of refusal for Phase 2 lots

• Developer will pay $12,500 per acre for 50% interest

• US Global Ventures will have the final say on which additional builders to bring in to the project (other than David’s building arm – True Homes)

Fairview Partners- Phase 2

2020 Budget Summary

Overhead Cost Reduction