Exxe Group Inc (AXXA)

[Senior_Penny]

Operating Expenses

For the Interim Period, selling, general & administrative expenses increased to $1,540,360 due to the company’s acquisitions which brought additional operating costs.



For FY 2019, selling, general & administrative expenses increased to $869,430 compared with $209,840 for FY 2018. These increases were due to the acquisitions made by the Company each of which brought additional operating costs. Operating expenses of $18,741 were recorded for FY 2017.



EBIT

For the Interim Period, the Company generated EBIT of $916,410. For FY 2019, the Company generated EBIT of $913,541 versus a net Operating Loss of $145,665 in FY 2018, an increase of $1,059,206. This increase was primarily due to the acquisitions made by the Company over the year. FY 2017 saw an Operating Loss of $18,741.



Financing Costs

For the Interim Period, the Company paid $1,415,696 in financing costs due to higher loan balances and debt payments made during the period from the cost of acquisitions.



For FY 2019, the Company paid $209,050 in financing costs versus $28,595 for FY 2018. This increase was related to higher loan balances made over the year. Financing Costs in FY 2017 were $10,516.



Net Income

For the Interim Period, the company has recorded a net loss of $443,442 due to higher financing costs totaling $1,415,696.



For FY 2019, the Company recorded net income of $1,686,106 compared to a net loss of $174,260 for FY 2018, an increase of $1,860,366. This increase was due to the acquisitions made during the year, as well as loan forgiveness totaling $981,615. The net loss for FY 2017 was $29,257.



Liquidity and Capital Resources

The company’s cash position rose to $547,397 on Dec 31st 2019.



Cash position was $304,158 on March 31, 2019, versus $3,433 on March 31st 2018 and $2,624 on March 31st 2017.



Going Concern



There can be no assurance that sufficient funds required during the next year or thereafter will be generated from operations or available from external sources such as debt or equity financings, or other potential sources. The inability to generate cash flow from operations or to raise capital from external sources would force the Company to substantially curtail and cease operations, therefore, having a material adverse effect on its business. Furthermore, there can be no assurance that any funds, if available, will possess attractive terms or not have a significant dilutive effect on the Company’s existing stockholders.



Off Balance Sheet Arrangements



The Company has no off-balance sheet arrangements.



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BUSINESS



Exxe Group, Inc.



Exxe Group, Inc. (“Exxe Group,” “AXXA,” “we,” or the “Company”) was incorporated in Delaware on August 22, 2017. Our offices are located at 14 Penn Plaza, 9th Floor, New York, NY 10122. Our website is located at http://exxegroup.com. Our telephone number is 855-285-2285 and our email address is [e-mail].



We do not incorporate the information on or accessible through our website into this Offering Circular, and you should not consider any information on, or that can be accessed through our website a part of this Offering Circular.



Exxe Group buys, builds and manages real estate, agribusiness, and technology assets. Its pipeline of equity investments includes both projects that already closed and are under management consulting, while others are still in various acquisition stages. We use innovative technology to digitize and monetize assets while delivering better service to our investors and customers.



Current real estate holdings and projects under development include residential and commercial holdings in the U.S., and general apartment development in greater Frankfurt which is Central Europe’s fastest growing area, The Company also operates a mixed use real estate and digital storage center under development in Switzerland. Through a signed Letter of Intent, we also shall own equity in a senior living community in Bavaria. To date, the Company also owns or has signed letters of intent to acquire agribusiness assets in the U.S. and in Europe.



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Our Businesses



Real Estate, Developments & Mortgages This segment contains high-end condos, residential and commercial mortgages, a major high-end project under development in Rhode Island, and an exclusive development projects.



Trump World Tower, NY, NY We own controlling interest in TWT project of four prime luxury condominiums at the prestigious Trump World Tower, adjacent to the United Nations. Each condominium unit is 2000-3000 square feet.



Z Ocean Crowne Plaza Penthouse, Miami, FL We own a controlling interest 1,200-square foot Z Ocean Crowne Plaza penthouse in the heart of Miami’s South Beach that generates annual revenue of approximately $100,000.



Chicago Mortgages, Chicago, IL We own a controlling interest $5,000,000 mortgage portfolio in two residential and commercial properties worth an estimated, combined $11 million, generating $600,000 in annual interest income. Together these three holdings generate $1.300,000 in annual revenues.



Rhode Island Development. This development is in the early stage of design and development phase. In the coming quarters, we expect to break ground on the Rhode Island Marina Hotel and Condominium Complex, which sits on 38 acres of prime waterfront property in Newport. This sustainable facility will be completing construction in 2022. The property planned to feature a nationally flagged hotel, vacation homes, condos, and a newly dredged marina with dozens of slips. The complex is planned to be powered by solar panels and wind turbines to generate most of the power and attain a minimum carbon footprint on the development while the wetlands and marina will be preserved. Environmental issues exist on the property making it difficult to develop. There are a number of other workouts that need to be completed before we can commence the development.



Swiss Holdings is carried on AXXA’s books at cost, or roughly $15,000,000. Swiss holdings include Hesse Residences Development, a new residential development in the Rhein Main Area, the fastest growing region in Germany. This 60-unit sustainable and cost-efficient residential complex is located in the city-center of Schlüchtern, The Hesse Residences will have a large planted courtyard, underground car parking and spacious communal areas. It slated to break ground this quarter and could generate a total estimated sales volume of 12 million Euros, or $13 million. The Company also owns a large plot of land with an industrial building that is currently a large Self-Storage Facility that is planned to be double in size to 9,500 square meters over the next 18 months. Once completed, it will also host High Tech Data Storage Center, a regional hub of new USB (Universal Storage Box Solution) for Physical and Digital Assets, offices, apartments and other sustainable amenities. Renovation completion should occur sometime in 2020. Separately, the Company has a small residential mortgage portfolio on properties near Zurich and plans to also take over the properties once the mortgages are paid. The portfolio generates over $150,000 in interest income.



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Sustainable and Diversified Technologies


Lucent LED Technology is a full-service green energy solutions provider and specializes in LED lighting. LED lighting is increasingly being incorporated by all tiers of commercial and government enterprises.

Softsmart2.0 also known as Neccentric is a digital management consultancy, whose services include app development, CRM, ERP, front & back-end development, as well as brand & marketing development. One of the company’s key applications is its B2B Lending Systems platform where lenders meet borrowers—a tremendous in-house advantage for Exxe Group companies.

CleverGuides is a Delaware domiciled holding for startup B2B lead generation tech which uses proprietary algorithmic models to seek out and engage potential new customers, then targets these new customer leads with customized corporate products and service bundles. Exxe Group sees an opportunity to address the needs of modern businesses which could lead to a revenue share of acquired new customers’ top line. One of main CG projects is an AI advisor solution system for Pepper, the world’s first social humanoid robot able to recognize faces and basic human emotions.

DHE Group,is an e-commerce and distribution business for industrial motor vehicle parts generating yearly revenues of $2,000,000 and has an estimated $1,000,000 in inventory. Business utilizes industrial, storage and mixed-use spaces for their operation. Exxe Group has a controlling interest in this business.

Exxe Group through its Swiss holding recently acquired controlling interest in Mylestone Capital GmbH which has a revolutionary heating system based on infrared technology that is distributed and installed throughout Europe. This innovative heating technology is capable of operating with low-voltage electricity (radiant heat) based on the utilization of carbon fiber. As a result, the production, distribution and application of highly efficient and uniform surface heating for walls, ceilings and floors through photovoltaics is attained. Given the broad shift away from fossil fuels on a global scale, this patented technology can be deployed as an efficient, cost-effective alternative energy source to markets across the globe and in multiple environments.

Media & Communications

The VIP International Digital Media Platform and Community delivers and markets exclusive VIP concierge services and events to an elite, wealthy community via a premier software booking app. Based in the US, it currently operates in more than 40 cities worldwide. Festivals and Live Events business includes European Film Festival in China Mainland, is a community based marketer and operator of Film Festivals. Revenue is generated via ticket sales, events, digital assets monetization, along with advertising and sponsorship activity.

Agribusiness

Flying Creek Trading FC is a grower and trading operation that acts as the broker in the exchange and consults on processing and logistics of niche commodities to fulfill successful trades for both sides. Business also provides custom harvesting and processing of specialty crops, including custom harvest services to industrial hemp industry in the US and Canada. Currently, there are over 3,000 hectares contracted with the ability to harvest 200 acres per day for processing at their sites in the US and Canada. FCTC has supplies to plastics and construction industries.

Several other projects represent Axxa’s interests in the global agribusiness industry, all of which are revenue-generating and highly synergistic across platforms and agricultural products such as grains and hemp, fostering profitability. These include: the Onyx Project, a physical commodities trading, Portlani Project, a highly regarded processing and storage, and Dioni Project, a sophisticated logistics and transport. It should be noted that these entities are referred to by Exxe Group as projects at this juncture, pending their re-branding.




Letters of Intent

The Company is currently in the LOI stage for two projects in Germany; one senior living and another focused on boutique hotels. The first project includes the construction of a 5-Star, large-scale senior residential community development. A second LOI is for a portfolio of 3 boutique hotels. These deals would occur in stages as soon as the company ready to proceed.