Ark7

Going concern doubt: consolidated financial statements prepared on going concern basis with accumulated deficit of $2,367,530 as of June 30, 2025, reflecting recurring operating losses across series.

“The accompanying consolidated and consolidating financial statements have been prepared to assume the APL will continue as a going concern. The APL is newly formed and has not generated sufficient revenue from operations. The APL will require additional capital until revenue from operations are sufficient to cover operational costs. These matters raise substantial doubt about the company's ability to continue as a going concern. As of June 30, 2025, the APL's accumulated deficit amounted to $2,367,530.”

The company's audited financial statements include a going concern qualification; newly formed with no revenues and dependent on additional capital.

“The company's consolidated financial statements include a going concern opinion. The company's financial statements were prepared on a "going concern" basis. Certain matters, as described in the accompanying financial statements, indicate there may be substantial doubt about the company's ability to continue as a going concern. Specifically, the company is newly formed and has not generated revenue from operations.”

Ark7 Inc. serves simultaneously as both Asset Manager and Managing Member; all fee determinations and property management decisions made non-arm's length, creating pervasive conflicts of interest that may benefit Ark7 at investors' expense.

“Ark7 Inc. is both the Asset Manager and the Managing Member. The Managing Member has appointed the Asset Manager. On balance, Ark7 Inc. controls all of the decisions related to each Series... None of the responsibilities and determinations listed above will be made at arm's length and all of these decisions may unjustly financially reward Ark7 to the detriment of each Series and the investors.”

Ark7 Inc. controls all material decisions for each Series (property care, management, sale, fee determination) as both Asset Manager and Managing Member, creating significant conflicts of interest; no independent assessment of market-rate fees was obtained.

“None of the responsibilities and determinations listed above will be made at arm's length and all of these decisions may unjustly financially reward Ark7 to the detriment of each Series and the investors. These conflicts may inhibit or interfere with the sound and profitable operation of the company and much smaller, if any, distributions made to the investors. Further, the fees to be paid to the Managing Member and Asset Manager were determined internally, by the company and Ark7 and the company did not rely on any independent assessment of market rates.”