Item 2 – “Management’s Discussion and Analysis or Plan of Operation” in this quarterly report on Form 10-QSB, new risk factors emerge from time to time and it is not possible for us to predict all such factors, nor to assess the impact such factors might have on our business or the extent to which any factor or combination of factors may cause actual results to differ materially from those contained in any forward looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results.
 
Whenever we refer in this report to “Wilson Holdings,” “the Company,” “we,” “us,” or “our,” we mean Wilson Holdings, Inc., a Nevada corporation, and, unless the context indicates otherwise, its predecessors and subsidiaries, including its wholly-owned subsidiaries,  Wilson Family Communities, Inc., a Delaware corporation and Green Builders, Inc., a Texas corporation.
 
 

Item 1.  Financial Statements

 
WILSON HOLDINGS, INC.
  
Consolidated Balance Sheets
  
As of December 31, 2007 and September 30, 2007
  
   
(Unaudited)
        
   
December 31,
    
September 30,
  
ASSETS
            
Cash and cash equivalents
   $ 12,453,287       13,073,214  
Restricted cash
     117,603       -  
Inventory
                
Land and land development
     34,753,456       32,463,411  
Homebuilding inventories
     6,459,368       2,843,704  
Total inventory
     41,212,824       35,307,116  
Other assets
     1,029,186       729,471  
Debt issuance costs, net of amortization
     1,205,965       1,265,218  
Equipment and software, net of accumulated depreciation and amortization of
$35,640 and $32,294, respectively
     275,066       232,357  
Total assets
     56,293,931       50,607,375  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY
                
Accounts payable
     3,086,799       1,404,151  
Accrued real estate taxes payable
     319,423       405,060  
Accrued liabilities and expenses
     797,958       215,372  
Accrued interest
     282,303       464,809  
Deferred revenue
           159,381  
Notes payable and lines of credit
     26,034,855       20,638,358  
Subordinated convertible debt, net of $3,105,633 and $3,384,807 discount, respectively
     13,394,367       13,254,780  
Total liabilities
     43,915,905       36,541,911  
                 
STOCKHOLDERS' EQUITY
                
                 
Common stock, $0.001 par value, 100,000,000 shares authorized and 23,135,538
shares issued and outstanding, respectively
     23,136       23,136  
Additional paid in capital
     27,710,004       27,040,304  
Retained deficit
     (15,355,114 )     (12,997,976 )
Total stockholders' equity
     12,378,026       14,065,464  
Commitments and contingencies
     -       -  
Total liabilities and stockholders' equity
   $ 56,293,931       50,607,375  
 
See accompanying notes to the consolidated financial statements.
 
WILSON HOLDINGS, INC.
  
Consolidated Statements of Operations
  
For the Three Months Ended December 31, 2007 and 2006
  
             
   
Three Months Ended December 31,
  
   
   
 
   
(Unaudited)
    
(Unaudited)
  
Revenues:
            
Homebuilding and related services
   $ -       1,032,659  
Land sales
     1,108,312       437,141  
Total revenues
     1,108,312       1,469,800  
                 
Cost of revenues:
                
Homebuilding and related services
     -       778,802  
Land sales
     709,055       430,486  
Total cost of revenues
     709,055       1,209,289  
                 
Gross profit:
                
Homebuilding and related services
     -       253,857  
Land sales
     399,257       6,655  
Total gross profit
     399,257       260,511  
                 
Costs and expenses:
                
Corporate general and administration
     1,680,714       983,156  
Sales and marketing
     255,299       280,037  
Total costs and expenses
     1,936,013       1,263,193  
Operating loss
     (1,536,756 )     (1,002,681 )
Other income (expense):
                
Loss on fair value of derivatives
     -       (5,076,957 )
Interest and other income
     93,195       30,136  
Interest expense
     (913,577 )     (717,729 )
Total other expense
     (820,382 )     (5,764,551 )
Net loss
   $ (2,357,138 )     (6,767,232 )
                 
Basic and diluted loss per share
   $ (0.10 )     (0.38 )
                 
Basic and diluted weighted average common shares outstanding
     23,135,538       17,706,625  

See accompanying notes to the consolidated financial statements.
 

WILSON HOLDINGS, INC.
  
Consolidated Statements of Cash Flows
  
For the Three Months Ended December 31, 2007 and 2006
  
             
   
   
 
   
(Unaudited)
    
(Unaudited)
  
Cash flows from operating activities:
            
Net loss
   $ (2,357,138 )     (6,767,232 )
Non cash adjustments: