10-Q

U.S. SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

T	Quarterly Report Under Section 13 or 15(d) of the Securities Exchange Act of 1934
	For the quarterly period ended December 31, 2013
¨	Transition Report Pursuant to 13 or 15(d) of the Securities Exchange Act of 1934
	For the transition period of              to

Commission File Number 0-7865.

SECURITY LAND AND DEVELOPMENT CORPORATION

(Exact name of issuer as specified in its charter)

Georgia	58-1088232
(State or other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification Number)

2816 Washington Road, #103, Augusta, Georgia 30909

(Address of Principal Executive Offices)

Issuers Telephone Number (706) 736-6334

(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Year)

Check whether the Issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    YES  T   NO  ¨

        Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. 

See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in rule 12b-2 of the Exchange Act.

Large accelerated filer      ¨	Accelerated filer ¨
Non-accelerated filer  (Do not check if a smaller reporting company)     ¨	Smaller reporting company T

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  YES T   NO  ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

¨Yes      TNo

State the number of shares outstanding of each of the issuer’s classes of common equity, as of the latest practicable date.

Class	Outstanding at February 14, 2014
Common Stock, $0.10 Par Value	5,243,107 shares

Table of Contents

SECURITY LAND AND DEVELOPMENT CORPORATION

Form 10-Q

Index

Part I	FINANCIAL INFORMATION
Item 1.	Financial Statements
	Consolidated Balance Sheets as of December 31, 2013 and September 30, 2013	1
	Consolidated Statements of Income and Retained Earnings for the Three Month Periods ended December 31, 2013 and 2012	2
	Condensed Consolidated Statements of Cash Flows for the Three Month Periods ended  December 31, 2013 and 2012	3
	Notes to the Consolidated Financial Statements	4-7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	8-9
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	9
Item 4.	Controls and Procedures	9-10
Part II	OTHER INFORMATION	10
Item 1.	Legal Proceedings	10
Item 1A.	Risk Factors	10
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	10
Item 3.	Defaults Upon Senior Securities	10
Item 4.	Reserved for Future Use	10
Item 5.	Other Information	10
Item 6.	Exhibits	10
	SIGNATURES	11-13

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

SECURITY LAND AND DEVELOPMENT CORPORATION
CONSOLIDATED BALANCE SHEETS

	December 31,		September 30,
	2013		2013
	(Unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	24,981	$	24,599
Receivables from tenants, net of allowance of $19,938
at December 31, 2013 and September 30, 2013		358,528		497,324
Prepaid property taxes		-		15,003
Total current assets		383,509		536,926
INVESTMENT PROPERTIES
Investment properties for lease, net of accumulated depreciation		5,384,403		5,415,447
Land and improvements held for investment or development		3,639,598		3,639,598
		9,024,001		9,055,045
OTHER ASSETS		74,294		76,188
	$	9,481,804	$	9,668,159
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable and accrued expenses	$	215,821	$	325,720
Income taxes payable		155,147		183,236
Current maturities of notes payable		594,891		584,491
Current maturities of deferred revenue		24,652		24,652
Total current liabilities		990,511		1,118,099
LO NG-TERM LIABILITIES
Notes payable, less current portion		2,654,764		2,807,314
Deferred income taxes		764,164		764,645
Deferred revenue, less current portion		10,256		16,419
Total long-term liabilities		3,429,184		3,588,378
Total liabilities		4,419,695		4,706,477
STOCKHOLDERS' EQUITY
Common stock, par value $.10 per share; 30,000,000 shares authorized; 5,243,107
shares issued and outstanding		524,311		524,311
Additional paid-in capital		333,216		333,216
Retained earnings		4,204,582		4,104,155
Total Stockholders' equity		5,062,109		4,961,682
Liabilities and Stockholders' equity	$	9,481,804	$	9,668,159
The accompanying notes are an integral part of these consolidated financial statements.

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SECURITY LAND AND DEVELOPMENT CORPORATION
CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS
		For the Three Month
		Periods Ended December 31,
	2013		2012
	(Unaudited)		(Unaudited)
OPERATING REVENUE
Rents revenue	$	373,748	$	359,103
OPERATING EXPENSES
Depreciation and amortization		32,937		32,948
Property taxes		67,863		64,625
Payroll and related costs		20,133		22,479
Insurance and utilities		7,635		14,019
Repairs and maintenance		23,720		9,210
Professional services		11,580		18,001
Bad debt		-		4,405
Other		604		4,726
		164,472		170,413
Operating income		209,276		188,690
OTHER EXPENSE
Interest		(47,399)		(55,612)
Income before income taxes		161,877		133,078
INCOME TAXES PROVISION
Income tax expense		61,931		49,493
Income tax deferred (benefit) provision		(481)		643
		61,450		50,136
Net income		100,427		82,942
RETAINED EARNINGS, BEGINNING OF PERIOD		4,104,155		3,721,870
RETAINED EARNINGS, END OF PERIOD	$	4,204,582	$	3,804,812
PER SHARE DATA
Net income per common share	$	0.02	$	0.02

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SECURITY LAND AND DEVELOPMENT CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
	For the Three Month
	Periods Ended December 31,
	2013		2012
	(Unaudited)		(Unaudited)
OPERATING ACTIVITIES
Net income	$	100,427	$	82,942
Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation and amortization		32,938		32,948
Deferred income tax		(481)		643
Changes in deferred and accrued amounts:		9,648		(9,408)
Net cash provided by operating activities		142,532		107,125
FINANCING ACTIVITIES
Repayments to stockholder		-		(30,000)
Proceeds from stockholder		-		30,000
Principal payments on notes payable		(142,150)		(130,758)
Net cash used in financing activities		(142,150)		(130,758)
Net increase (decrease) in cash and cash equivalents		382		(23,633)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		24,599		48,767
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	24,981	$	25,134
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest	$	47,399	$	55,612
Cash paid for income taxes	$	-		25,000

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SECURITY LAND AND DEVELOPMENT CORPORATION

Notes to the Consolidated Financial Statements

Note  1 – Basis of Presentation

The accompanying unaudited consolidated financial statements were prepared in accordance with instructions for Form 10-Q, Article 8 of Regulation S-X and accounting principles generally accepted in the United States of America; therefore, they do not include all disclosures necessary for a complete presentation of financial condition, results of operations, and cash flows.  Such statements are unaudited but, in the opinion of management, reflect all adjustments, which are of a normal recurring nature and necessary for a fair presentation of results for the selected interim periods.  Users of financial information produced for interim periods are encouraged to refer to the footnotes contained in the audited financial statements appearing in our Form 10-K for the year ended September 30, 2013 when reviewing these interim financial statements.

The financial statements include estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period.  Actual results could differ from those estimates.  The consolidated financial statements include the accounts of Security Land and Development Corporation and its four wholly owned subsidiaries, Royal Palms Motel, Inc., SLDC, LLC, SLDC 2, LLC and SLDC III, LLC (described on a consolidated basis as the “Company”).  Significant intercompany transactions and accounts are eliminated in consolidation.

Critical Accounting Policies:

Estimates of Useful Lives of Investment Properties for Purposes of Depreciation

Management has estimated useful lives of investment properties, except for land, that are leased, and the Company utilizes the straight-line method to compute depreciation over the estimated useful lives of the investment properties.  Actual depreciation of investment properties will vary from management’s estimates, and the value of investment properties is more directly impacted by market conditions and the physical condition of the investment properties.

Evaluation of Long-Lived Assets for Impairment

The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of investment properties may not be recoverable.  In evaluating recoverability, the Company generally estimates future cash flows expected to result from the use of the asset and its eventual disposition.  An impairment loss is recognized when the expected future cash flows of the asset are less than the carrying amount.

Estimates of Income Tax Rates Applicable to Deferred Taxes

The Company has deferred income taxes through a series of tax-deferred like-kind exchange transactions on certain investment properties and through accelerated depreciation elections on certain other assets.  Actual income taxes that may become due when taxable gains are realized on the sale of assets may differ from management’s estimates as a result of changes in tax laws, the tax status of the Company, or the actual taxable earnings of the Company in the periods the deferred income taxes become due.

Refer to the Company’s Form 10-K for the year ended September 30, 2013 for further information regarding its critical accounting policies.

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Note  2 – Investment Properties

Investment properties leased or held for lease to others under operating leases consisted of the following at December 31, 2013 and September 30, 2013:

	December 31,			September 30,
	2013			2013
	(unaudited)
National Plaza building, land and improvements	$	5,138,796		$	5,138,796
Evans Ground Lease, land and improvements	2,382,673			2,382,673
Commercial land and improvements	3,639,598			3,639,598
	11,161,067			11,161,067
Less accumulated depreciation	(2,251,443		)	(2,221,077		)
	8,909,624			8,939,990
Residential rental property	145,847			145,847
Less accumulated depreciation	(31,470		)	(30,792		)
	114,377			115,055
Investment properties for lease, net of accumulated depreciation	$	9,024,001		$	9,055,045

Depreciation expense totaled approximately $31,000 for each of the three-month periods ended December 31, 2013 and 2012.

The National Plaza is a retail strip center located on Washington Road in Augusta Georgia.  Approximately 81% of the rentable space at the National Plaza is leased to Publix Supermarkets, Inc., the National Plaza’s anchor tenant. 

The Company entered into a long-term ground lease with a major national tenant and its developer in May 2006 on approximately 18 acres of land in Columbia County, Georgia.  The agreement required monthly rental payments of $20,833 during the development period, which was completed in January 2007.  Following the expiration of the development period, the lease requires annual rental payments of $500,000 for the first 5 years then increasing 5% in years 6, 11, and 16.  The lessee has an option to renew at year 21 and another option every 5 years thereafter for a possible total lease term of 50 years.  The lease provides for the tenant to pay for insurance and property taxes. The Company is recognizing rents on a straight-line basis over the lease term.  In July 2013, the Company sold approximately .24 acres of the total Evans ground Lease tract for $156,000.  The Company recognized a gain of approximately $108,000.  The proceeds were used by the Company to pay down debt related to an outstanding note payable collateralized by the Evans Ground Lease and related land and to compensate the Evans Ground Lease tenant per the related agreement.

The Company holds several parcels of land for investment or development purposes, including 19.38 acres of land in North Augusta, South Carolina, purchased in parcels during 2007 and 2008.  The Company also owns approximately 85 acres of land in south Richmond County, Georgia and a 1.1 acre parcel along Washington Road in Augusta, Georgia that adjoins the Company’s National Plaza investment property.  The aggregate costs of these investment properties held for investment or development was $3,639,598 at December 31, 2013 and September 30, 2013.

Refer to the Company’s Form 10-K for the year ended September 30, 2013 for further information on operating lease agreements and land held for investment or development purposes.

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Note  3 – Notes Payable

Notes payable consisted of the following at:

	December 31, 2013	September 30, 2013
	(unaudited)
A line of credit with a regional financial institution for up to $251,934 procured in March 2008 with a floating interest rate based on prime and originally payable in full in April 2009.  In April 2009 the Company refinanced the $243,019 line of credit with a regional financial institution.  The Company entered into an agreement with the same regional financial institution to borrow the outstanding balance of $243,019, bearing interest based on the greater of prime or 6% with interest payments due monthly, maturing in April 2010.  In January 2010 the Company renewed this line of credit and increased the open balance to $300,250.  This agreement originally matured in February 2011. In December 2010, the Company renewed the line of credit to December 5, 2011, at the greater of prime plus 1% or 6%.  In December 2011, the Company renewed the line of credit to December 12, 2012, at the greater of prime plus 1% or 6%.  In November of 2012, the Company converted the line of credit to a fixed rate loan due December 2017.  The new term loan accrues interest at a 5.5% annually with monthly installments of $3,287. The current balance relates to the purchase of the 1 acre adjoining the North Augusta, South Carolina property in May 2008 and is collateralized by the residential property on Stanley Drive in Augusta, Georgia.	278,592	284,531
A note payable to an insurance company, secured with a mortgage interest in National Plaza and an assignment of rents.  The note is payable in monthly installments of $35,633, including interest, through June 2015, and bears interest at a fixed rate of 7.875%.	603,100	696,892
A note payable to a regional financial institution collateralized with 17.54 acres of land in North Augusta, South Carolina.  The note is payable in monthly installments of $7,563, including principal and interest, through July 2018, and bears interest at a fixed rate of 5%.	374,872	392,945
A note payable to an insurance company collateralized with approximately 18 acres of land in Columbia County, Georgia, and an assignment of the long-term ground lease.  The note is payable in monthly installments of $17,896, including interest, through May 1, 2027, and bears interest at a fixed rate of 5.85%.	1,993,091	2,017,437
	3,249,655	3,391,805
Less current maturities	(594,891)	(584,491)
	$2,654,764	$2,807,314

Management of the Company expects future liquidity needs of the Company to be funded from rent revenues, refinancing and the appreciation in investment properties (which can be sold or mortgaged, if necessary).  Additionally, funding can be obtained from members of the Company’s Board of Directors.

(Continued)

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Note  3 – Notes Payable, (Continued)

Current maturities of notes payable will require the Company to make payments over the next 12 months totaling $594,891.  The Company projects that it will be able to fund the payment of its current maturities of notes payable through cash flows generated from its operations and cash on hand, but there can be no assurance that this will occur.

If the Company is unsuccessful in their efforts described above, the Company intends to seek additional financing or sell certain of its assets.

Note  4 – Income Taxes

The Company has a total outstanding income tax payable in the amount of $155,147 at December 31, 2013.  Of this amount, $61,931 is related to the first quarter of fiscal year 2014 and $93,216 is related to 2013 tax expense. 

Note  5 – Concentrations

Substantially all of the Company’s assets consist of real estate located in Richmond and Columbia Counties in the state of Georgia and in North Augusta, South Carolina.  Approximately 99% of the Company’s revenues are earned from two of the Company’s investment properties, National Plaza and the Evans Ground Lease, which comprise approximately 52% and 47% of the Company’s revenues, respectively.   The anchor tenant for National Plaza, Publix Supermarkets, Inc. (“Publix”), a regional food supermarket chain, leases approximately 81% of the space at National Plaza.  The Company generates approximately 37% of its revenues though its lease with Publix.

Note  6 –  Related Party Transactions

The Company hired an attorney who sits on the Company’s Board of Directors and who also serves a Vice President of the Company, to represent the Company in a legal matter regarding a tenant’s claim for reimbursement of certain expenses charged.  It is the opinion of the Company’s management that the Company is not liable for this claim.

During the first quarter of fiscal 2013, the Company borrowed $30,000 from a member of the Company’s Board of Directors, who is also a member of the Flanagin family, to meet cash flow needs.  The amount was repaid during the quarter also with interest at a rate of 6%.

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Item  2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Results of Operations:

The Company’s results of operations for the three months ended December 31, 2013, and a comparative analysis of the same period for 2012 are presented below:

			Increase (Decrease)
			2013 compared to 2012
	2013	2012	Amount	Percent
Rent revenue	$  373,748	$  359,103	$  14,645	4	%
Operating expenses	164,472	170,413	(5,941)	-3	%
Interest expense	47,399	55,612	(8,213)	-15	%
Income tax expense	61,450	50,136	32,718	23	%
Net income	100,427	82,942	(3,919)	21	%

Rent revenue consists primarily of rent revenue from the Company’s National Plaza, a strip center on Washington Road in Augusta, Georgia, and the Evans Ground Lease in Evans, Georgia.  The Company also earned rent revenue from a ground lease with an auto-repair service operation on an out parcel of National Plaza. 

Refer to the Company’s Form 10-K for the year ended September 30, 2013 for further information regarding the properties owned and their lease terms.

Total operating expenses for the three months ended December 31, 2013 decreased slightly compared to the same period for 2012 due primarily to decreased professional fees.  Professional fees decreased due to decreased legal fees compared to the prior year related to an ongoing dispute over a tenant’s claim for reimbursement of certain expenses charged.  This dispute is unresolved as of December 31, 2013. It is the opinion of the Company’s management that the Company does not owe any reimbursement.  Management expects operating expenses for the remainder of the current fiscal year to be comparable to the current operating period.

Interest expense for the three month period ended December 31, 2013 decreased compared to 2012 due to the decrease in debt resulting from scheduled principle payments. Management expects interest expense for the remainder of the current fiscal year to continue to decrease slightly as outstanding debt is amortized.

Income tax expense for the three month period ended December 31, 2013 increased compared to the same period for 2012 due mainly to increased rental income as a result of higher occupancy for National Plaza and lower interest and operating expenses as noted above.  Management expects income tax expense for the remainder of the current fiscal year to be comparable to the current operating period.

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Liquidity and Sources of Capital:

The Company’s ratio of current assets to current liabilities at December 31, 2013 was 39%.  The ratio was 48% at September 30, 2013. 

Management of the Company expects future liquidity needs of the Company to be funded from rent revenues, refinancing and the appreciation in investment properties (which can be sold or mortgaged, if necessary).  Additionally, funding can be obtained from members of the Board of Directors.

Current maturities of notes payable will require the Company to make payments over the next 12 months totaling $594,891.  The Company projects that it will be able to fund the payment of its current maturities of notes payable through cash flows generated from its operations and cash on hand, but there can be no assurance that this will occur.

If the Company is unsuccessful in their efforts described above, the Company intends to seek additional financing, sell certain of its fully owned and un-collateralized assets or borrow money from certain stockholders.

Cautionary Note Regarding Forward-Looking Statements:

The results of operations for the three-month period ended December 31, 2013 are not necessarily indicative of the results that may be expected for the entire fiscal year.  The Company may, from time to time, make written or oral forward-looking statements, including statements contained in the Company’s filings with the Securities and Exchange Commission (the “Commission”) and its reports to stockholders.  Such forward-looking statements are made based on management’s belief as well as assumptions made by, and information currently available to, management pursuant to “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995.  The Company’s actual results may differ materially from the results anticipated in these forward-looking statements due to a variety of factors, including, but not limited to, competition from other real estate companies, the ability of the Company to obtain financing for projects, and the continuing operations of tenants.

Item  3. Quantitative and Qualitative Disclosures About Market Risks

   Not applicable to smaller reporting companies

Item  4. Controls and Procedures

(a)      Within the 90 days prior to the filing date of this report, the Company carried out an evaluation, under the supervision and with the participation of the Company’s management, including the Company’s Chief Executive Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures pursuant to Rules 13a-15(e) and 15d-15(e) under the Securities and Exchange Act of 1934.  Based upon that evaluation, the Company’s Chief Executive Officer concluded that the Company’s disclosure controls and procedures were ineffective.

(b)      There were no significant changes in the Company’s internal controls over financial reporting or in other factors that could significantly affect these controls subsequent to the date the Chief Executive Officer carried out the evaluation.

           As of September 30, 2013, the Company’s management evaluated the effectiveness of its internal control.  Based on the evaluation, the Company’s management concluded that the Company’s internal control over financial reporting was ineffective as of September 30, 2013 and identified a material weakness related to the lack of segregation of duties, accounting personnel with the requisite knowledge of GAAP and the lack of written policies and procedures over financial reporting.

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           Notwithstanding the existence of this material weakness in our internal control over financial reporting, our management believes that the consolidated financial statements included in its reports fairly present in all material respects the Company’s financial condition, results of operations and cash flows for the periods presented.

There has been no change in the Company’s internal control over financial reporting that occurred during the Company’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II - OTHER INFORMATION

Item  1. Legal Proceedings

During 2011, the Company was notified by a tenant of a claim for reimbursement of certain expenses charged.  It is the opinion of the Company's management that the Company is not liable for this claim.  The Company has accrued approximately $100,000 for professional fees and other expenses to defend its position.

Item  1A. Risk Factors

The Company, as a smaller reporting company, is not required to provide the information required by this item.

Item  2. Unregistered Sales of Equity Securities and Use of Proceeds

None

Item  3. Defaults Upon Senior Securities

None

Item  4. Reserved for Future Use

Item  5. Other Information

Management of the Company notes that no Forms 8-K were filed during the period and Management is not aware of any un-reported matters occurring during the period that would require disclosure in a Form 8-K. 

Item  6. Exhibits

(a)	Exhibit No.	Description
	31.1	Certification Pursuant to Section 302 of Sarbanes-Oxley Act of 2002
	32.1	Certification Pursuant to Section 906 of Sarbanes-Oxley Act of 2002
	101	The following financial information from Security Land and Development Corporation’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2013 is  formatted in Extensible Business Reporting Language (XBRL):  (i) The Consolidated Balance Sheets, (ii) the Consolidated Statements of Income and Retained Earnings, (iii) the condensed Consolidated Statements of Cash Flows and (iv) Notes to Consolidated Financial Statements.

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SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

SECURITY LAND AND DEVELOPMENT CORPORATION

(Registrant)

By:	/s/ T. Greenlee Flanagin	February 14, 2014
	T. Greenlee Flanagin	Date
	President
	Chief Executive Officer and Chief Financial Officer

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EX-31

EXHIBIT 31.1

CERTIFICATIONS

I, T. Greenlee Flanagin, certify that:

1.  I have reviewed this quarterly report on Form 10-Q of Security Land and Development Corporation;

2.  Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.  Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.  The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and  have:

a)  Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)  Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)  Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation;  and

d)  Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.  The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors.

a)  all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information.

b)  Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: February 14, 2014

/s/ T. Greenlee Flanagin

T. Greenlee Flanagin

President and Chief Executive Officer and
Chief Financial Officer

EX-32

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Security Land and Development Corporation (the “Company”) on Form 10-Q for the quarter ended December 31, 2013 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, T. Greenlee Flanagin, President and Chief Executive Officer of the Company, does hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

	(1)	The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
	(2)	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
By:
	/s/ T. Greenlee Flanagin
	T. Greenlee Flanagin
	President
	Chief Executive Officer and Chief
	Financial Officer
	February 14, 2014

A signed original of this written statement required by Section 906 has been provided to Security Land and Development Corporation and will be retained by Security Land and Development Corporation and furnished to the Securities and Exchange Commission or its staff upon request.

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Income Taxes

3 Months Ended

Dec. 31, 2013

Income Taxes:

Income Taxes

Note  4 – Income Taxes

The Company has a total outstanding income tax payable in the amount of $155,147 at December 31, 2013.  Of this amount, $61,931 is related to the first quarter of fiscal year 2014 and $93,216 is related to 2013 tax expense. 

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Notes Payable

3 Months Ended

Dec. 31, 2013

Notes Payable {1}

Notes Payable

Note  3 – Notes Payable

Notes payable consisted of the following at:

	December 31, 2013	September 30, 2013
	(unaudited)
A line of credit with a regional financial institution for up to $251,934 procured in March 2008 with a floating interest rate based on prime and originally payable in full in April 2009.  In April 2009 the Company refinanced the $243,019 line of credit with a regional financial institution.  The Company entered into an agreement with the same regional financial institution to borrow the outstanding balance of $243,019, bearing interest based on the greater of prime or 6% with interest payments due monthly, maturing in April 2010.  In January 2010 the Company renewed this line of credit and increased the open balance to $300,250.  This agreement originally matured in February 2011. In December 2010, the Company renewed the line of credit to December 5, 2011, at the greater of prime plus 1% or 6%.  In December 2011, the Company renewed the line of credit to December 12, 2012, at the greater of prime plus 1% or 6%.  In November of 2012, the Company converted the line of credit to a fixed rate loan due December 2017.  The new term loan accrues interest at a 5.5% annually with monthly installments of $3,287. The current balance relates to the purchase of the 1 acre adjoining the North Augusta, South Carolina property in May 2008 and is collateralized by the residential property on Stanley Drive in Augusta, Georgia.	278,592	284,531
A note payable to an insurance company, secured with a mortgage interest in National Plaza and an assignment of rents.  The note is payable in monthly installments of $35,633, including interest, through June 2015, and bears interest at a fixed rate of 7.875%.	603,100	696,892
A note payable to a regional financial institution collateralized with 17.54 acres of land in North Augusta, South Carolina.  The note is payable in monthly installments of $7,563, including principal and interest, through July 2018, and bears interest at a fixed rate of 5%.	374,872	392,945
A note payable to an insurance company collateralized with approximately 18 acres of land in Columbia County, Georgia, and an assignment of the long-term ground lease.  The note is payable in monthly installments of $17,896, including interest, through May 1, 2027, and bears interest at a fixed rate of 5.85%.	1,993,091	2,017,437
	3,249,655	3,391,805
Less current maturities	(594,891)	(584,491)
	$2,654,764	$2,807,314

 Management of the Company expects future liquidity needs of the Company to be funded from rent revenues, refinancing and the appreciation in investment properties (which can be sold or mortgaged, if necessary).  Additionally, funding can be obtained from members of the Company’s Board of Directors.

Current maturities of notes payable will require the Company to make payments over the next 12 months totaling $594,891.  The Company projects that it will be able to fund the payment of its current maturities of notes payable through cash flows generated from its operations and cash on hand, but there can be no assurance that this will occur.

If the Company is unsuccessful in their efforts described above, the Company intends to seek additional financing or sell certain of its assets.

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CONSOLIDATED BALANCE SHEETS (USD $)	Dec. 31, 2013	Sep. 30, 2013
CURRENT ASSETS
Cash and cash equivalents	$ 24,981	$ 24,599
Receivables from tenants, net of allowance of $19,938 at December 31, 2013 and september 30, 2013.	358,528	497,324
Prepaid property taxes	0	15,003
Total current assets	383,509	536,926
INVESTMENT PROPERTIES
Investment properties for lease, net of accumulated depreciation	5,384,403	5,415,447
Land and improvements held for investment or development	3,639,598	3,639,598
Total Investment Properties	9,024,001	9,055,045
OTHER ASSETS	74,294	76,188
Total Assets	9,481,804	9,668,159
CURRENT LIABILITIES
Accounts payable and accrued expenses	215,821	325,720
Income taxes payable	155,147	183,236
Current maturities of notes payable	594,891	584,491
Current maturities of deferred revenue	24,652	24,652
Total current liabilities	990,511	1,118,099
LONG-TERM LIABILITIES
Notes payable, less current portion	2,654,764	2,807,314
Deferred income taxes	764,164	764,645
Deferred revenue, less current portion	10,256	16,419
Total long-term liabilities	3,429,184	3,588,378
Total liabilities	4,419,695	4,706,477
SHAREHOLDERS' EQUITY
Common stock, par value $.10 per share; 30,000,000 shares authorized; 5,243,107 shares issued and outstanding.	524,311	524,311
Additional paid-in capital	333,216	333,216
Retained earnings	4,204,582	4,104,155
Total shareholders' equity	5,062,109	4,961,682
Total Liabilities and Stockholders' Equity	$ 9,481,804	$ 9,668,159

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Basis of Presentation

3 Months Ended

Dec. 31, 2013

Basis of Presentation

Basis of Presentation

Note  1 – Basis of Presentation

The accompanying unaudited consolidated financial statements were prepared in accordance with instructions for Form 10-Q, Article 8 of Regulation S-X and accounting principles generally accepted in the United States of America; therefore, they do not include all disclosures necessary for a complete presentation of financial condition, results of operations, and cash flows.  Such statements are unaudited but, in the opinion of management, reflect all adjustments, which are of a normal recurring nature and necessary for a fair presentation of results for the selected interim periods.  Users of financial information produced for interim periods are encouraged to refer to the footnotes contained in the audited financial statements appearing in our Form 10-K for the year ended September 30, 2013 when reviewing these interim financial statements.

The financial statements include estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period.  Actual results could differ from those estimates.  The consolidated financial statements include the accounts of Security Land and Development Corporation and its four wholly owned subsidiaries, Royal Palms Motel, Inc., SLDC, LLC, SLDC 2, LLC and SLDC III, LLC (described on a consolidated basis as the “Company”).  Significant intercompany transactions and accounts are eliminated in consolidation.

Critical Accounting Policies:

Estimates of Useful Lives of Investment Properties for Purposes of Depreciation

Management has estimated useful lives of investment properties, except for land, that are leased, and the Company utilizes the straight-line method to compute depreciation over the estimated useful lives of the investment properties.  Actual depreciation of investment properties will vary from management’s estimates, and the value of investment properties is more directly impacted by market conditions and the physical condition of the investment properties.

Evaluation of Long-Lived Assets for Impairment

The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of investment properties may not be recoverable.  In evaluating recoverability, the Company generally estimates future cash flows expected to result from the use of the asset and its eventual disposition.  An impairment loss is recognized when the expected future cash flows of the asset are less than the carrying amount.

Estimates of Income Tax Rates Applicable to Deferred Taxes

The Company has deferred income taxes through a series of tax-deferred like-kind exchange transactions on certain investment properties and through accelerated depreciation elections on certain other assets.  Actual income taxes that may become due when taxable gains are realized on the sale of assets may differ from management’s estimates as a result of changes in tax laws, the tax status of the Company, or the actual taxable earnings of the Company in the periods the deferred income taxes become due.

Refer to the Company’s Form 10-K for the year ended September 30, 2013 for further information regarding its critical accounting policies.

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Investment Properties

3 Months Ended

Dec. 31, 2013

Investment Properties

Investment Properties

Note  2 – Investment Properties

Investment properties leased or held for lease to others under operating leases consisted of the following at December 31, 2013 and September 30, 2013: 

	December 31, 2013			September 30, 2013
	(unaudited)
National Plaza building, land and improvements	$	5,138,796		$	5,138,796
Evans Ground Lease, land and improvements	2,382,673			2,382,673
Commercial land and improvements	3,639,598			3,639,598
	11,161,067			11,161,067
Less accumulated depreciation	(2,251,443		)	(2,221,077		)
	8,909,624			8,939,990
Residential rental property	145,847			145,847
Less accumulated depreciation	(31,470		)	(30,792		)
	114,377			115,055
Investment properties for lease, net of accumulated depreciation	$	9,024,001		$	9,055,045

Depreciation expense totaled approximately $31,000 for each of the three-month periods ended December 31, 2013 and 2012.

The National Plaza is a retail strip center located on Washington Road in Augusta Georgia.  Approximately 81% of the rentable space at the National Plaza is leased to Publix Supermarkets, Inc., the National Plaza’s anchor tenant. 

The Company entered into a long-term ground lease with a major national tenant and its developer in May 2006 on approximately 18 acres of land in Columbia County, Georgia.  The agreement required monthly rental payments of $20,833 during the development period, which was completed in January 2007.  Following the expiration of the development period, the lease requires annual rental payments of $500,000 for the first 5 years then increasing 5% in years 6, 11, and 16.  The lessee has an option to renew at year 21 and another option every 5 years thereafter for a possible total lease term of 50 years.  The lease provides for the tenant to pay for insurance and property taxes. The Company is recognizing rents on a straight-line basis over the lease term.  In July 2013, the Company sold approximately .24 acres of the total Evans ground Lease tract for $156,000.  The Company recognized a gain of approximately $108,000.  The proceeds were used by the Company to pay down debt related to an outstanding note payable collateralized by the Evans Ground Lease and related land and to compensate the Evans Ground Lease tenant per the related agreement.

The Company holds several parcels of land for investment or development purposes, including 19.38 acres of land in North Augusta, South Carolina, purchased in parcels during 2007 and 2008.  The Company also owns approximately 85 acres of land in south Richmond County, Georgia and a 1.1 acre parcel along Washington Road in Augusta, Georgia that adjoins the Company’s National Plaza investment property.  The aggregate costs of these investment properties held for investment or development was $3,639,598 at December 31, 2013 and September 30, 2013.

Refer to the Company’s Form 10-K for the year ended September 30, 2013  for further information on operating lease agreements and land held for investment or development purposes.

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CONSOLIDATED BALANCE SHEETS PARENTHETICALS (USD $)	Dec. 31, 2013	Sep. 30, 2013
Parentheticals
Net of Allowance from tenants	$ 19,938	$ 19,938
Common Stock, Par Value	$ 0.10	$ 0.10
Common Stock, Shares Authorized	30,000,000	30,000,000
Common Stock, shares issued	5,243,107	5,243,107
Common Stock, shares outstanding	5,243,107	5,243,107

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NOTES PAYABLE CONSISTS OF (Details) (USD $)	Dec. 31, 2013	Sep. 30, 2013
NOTES PAYABLE CONSISTS OF
Long-term debt Secured Debt 5.5% Interest on Note Payable.	$ 278,592	$ 284,531
Long-term debt Secured Debt 7.875% Interest on Note Payable,	603,100	696,892
Long-term debt Secured Debt 5% Interest on Note Payable '	374,872	392,945
Long-term debt Secured Debt 5.85% Interest on Note Payable;	1,993,091	2,017,437
Long-term debt,	3,249,655	3,391,805
Less current maturities,	(594,891)	(584,491)
Notes payable, less current maturities,	$ 2,654,764	$ 2,807,314

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Document and Entity Information	3 Months Ended
	Dec. 31, 2013	Feb. 10, 2014
Document and Entity Information:
Entity Registrant Name	SECURITY LAND & DEVELOPMENT CORP
Document Type	10-Q
Document Period End Date	Dec. 31, 2013
Amendment Flag	false
Entity Central Index Key	0000088572
Current Fiscal Year End Date	--09-30
Entity Common Stock, Shares Outstanding		5,243,107
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	No
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q1

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Notes payable consisted of the following at Parentheticals (Details) (USD $)	Dec. 31, 2013	Nov. 30, 2012	Dec. 31, 2010	Jan. 31, 2010	Apr. 30, 2009	Mar. 31, 2008
Notes payable consisted of the following at parentheticals
Line of credit with a regional financial institution						$ 251,934
Refinanced line of credit with a regional financial institution					243,019
The Company entered into an agreement with the same regional financial institution to borrow the outstanding balance of					243,019
Interest rate based on the greater of prime					6.00%
Renewed this line of credit and increased the open balance to				300,250
Renewed the line of credit rate the greater of prime plus minimum			1.00%
Renewed the line of credit rate at the greater of prime plus maximum			6.00%
New term loan accrues interest at		5.50%
New term loan accrues interest annually with monthly installments		3,287
Note is payable in monthly installments	35,633
Note is payable in monthly installments at a fixed rate	7.88%
Note payable to a regional financial institution collateralized with land in North Augusta, South Carolina in acres	17.54
The note is payable in monthly installments including principal and interest	7,563
The note is payable in monthly installments and bears interest at a fixed rate of	5.00%
A note payable to an insurance company collateralized with approximately land in Columbia County, Georgia in acres	18
A note payable to an insurance company collateralized with approximately land in Columbia County, Georgia in monthly installments	$ 17,896
A note payable to an insurance company collateralized with approximately land in Columbia County, Georgia and bears interest at a fixed rate of	5.85%

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CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS (USD $)	3 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Revenues:
Rents REVENUES	$ 373,748	$ 359,103
OPERATING EXPENSES
Depreciation and amortization	32,937	32,948
Property taxes	67,863	64,625
Payroll and related costs	20,133	22,479
Insurance and utilities	7,635	14,019
Repairs and maintenance	23,720	9,210
Professional services	11,580	18,001
Bad debt	0	4,405
Other	604	4,726
Total Operating Expenses	164,472	170,413
Operating income	209,276	188,690
OTHER EXPENSE
Interest	(47,399)	(55,612)
Income before income taxes	161,877	133,078
INCOME TAXES PROVISION
Income tax expense	61,931	49,493
Income tax deferred (benefit) provision	(481)	643
TOTAL INCOME TAX PROVISION	61,450	50,136
NET INCOME	100,427	82,942
RETAINED EARNINGS, BEGINNING OF PERIOD	4,104,155	3,721,870
RETAINED EARNINGS, END OF PERIOD	$ 4,204,582	$ 3,804,812
Net income per common share	$ 0.02	$ 0.02

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ACCOUNTING POLICIES (Policies)

3 Months Ended

Dec. 31, 2013

ACCOUNTING POLICIES

Estimates of Useful Lives of Investment Properties for Purposes of Depreciation

Critical Accounting Policies:

Estimates of Useful Lives of Investment Properties for Purposes of Depreciation

Management has estimated useful lives of investment properties, except for land, that are leased, and the Company utilizes the straight-line method to compute depreciation over the estimated useful lives of the investment properties.  Actual depreciation of investment properties will vary from management’s estimates, and the value of investment properties is more directly impacted by market conditions and the physical condition of the investment properties.

Evaluation of Long-Lived Assets for Impairment

Evaluation of Long-Lived Assets for Impairment

The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of investment properties may not be recoverable.  In evaluating recoverability, the Company generally estimates future cash flows expected to result from the use of the asset and its eventual disposition.  An impairment loss is recognized when the expected future cash flows of the asset are less than the carrying amount.

Estimates of Income Tax Rates Applicable to Deferred Taxes

Estimates of Income Tax Rates Applicable to Deferred Taxes

The Company has deferred income taxes through a series of tax-deferred like-kind exchange transactions on certain investment properties and through accelerated depreciation elections on certain other assets.  Actual income taxes that may become due when taxable gains are realized on the sale of assets may differ from management’s estimates as a result of changes in tax laws, the tax status of the Company, or the actual taxable earnings of the Company in the periods the deferred income taxes become due.

Refer to the Company’s Form 10-K for the year ended September 30, 2013 for further information regarding its critical accounting policies.

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Related Party Transactions

3 Months Ended

Dec. 31, 2013

Related Party Transactions

Related Party Transactions

Note  6 –  Related Party Transactions

The Company hired an attorney who sits on the Company’s Board of Directors and who also serves a Vice President of the Company, to represent the Company in a legal matter regarding a tenant’s claim for reimbursement of certain expenses charged.  It is the opinion of the Company’s management that the Company is not liable for this claim.

During the first quarter of fiscal 2013, the Company borrowed $30,000 from a member of the Company’s Board of Directors, who is also a member of the Flanagin family, to meet cash flow needs.  The amount was repaid during the quarter also with interest at a rate of 6%.

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INCOME TAXES AS FOLLOWS (Details) (USD $)	Dec. 31, 2013
Deferred income tax liabilities:
Total Income Tax payable	$ 155,147
Tax Payable related to the first quarter of fiscal year 2014	61,931
Amount related to 2013 tax expense	$ 93,216

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Investment properties leased (Details) (USD $)	Dec. 31, 2013	Sep. 30, 2013
Investment properties leased
National Plaza building, land and improvements	$ 5,138,796	$ 5,138,796
Evans Ground Lease, land and improvements	2,382,673	2,382,673
Commercial land and improvements	3,639,598	3,639,598
Total Investments	11,161,067	11,161,067
Less accumulated depreciation	(2,251,443)	(2,221,077)
Net Investments	8,909,624	8,939,990
Residential rental property	145,847	145,847
Less accumulated depreciation	(31,470)	(30,792)
Total Residential rental Property	114,377	115,055
Investment properties for lease, net of accumulated depreciation	$ 9,024,001	$ 9,055,045

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Investment properties leased or held for leases (Tables)

3 Months Ended

Dec. 31, 2013

Investment properties leased or held for leases TABLE

Investment properties leased or held for leases TABLE

	December 31,			September 30,
	2013			2013
	(unaudited)
National Plaza building, land and improvements	$	5,138,796		$	5,138,796
Evans Ground Lease, land and improvements	2,382,673			2,382,673
Commercial land and improvements	3,639,598			3,639,598
	11,161,067			11,161,067
Less accumulated depreciation	(2,251,443		)	(2,221,077		)
	8,909,624			8,939,990
Residential rental property	145,847			145,847
Less accumulated depreciation	(31,470		)	(30,792		)
	114,377			115,055
Investment properties for lease, net of accumulated depreciation	$	9,024,001		$	9,055,045

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Notes Payable (Table)

3 Months Ended

Dec. 31, 2013

Notes Payable TABLE

Notes Payable TABLE

Notes payable consisted of the following at:

	December 31, 2013	September 30, 2013
	(unaudited)
A line of credit with a regional financial institution for up to $251,934 procured in March 2008 with a floating interest rate based on prime and originally payable in full in April 2009.  In April 2009 the Company refinanced the $243,019 line of credit with a regional financial institution.  The Company entered into an agreement with the same regional financial institution to borrow the outstanding balance of $243,019, bearing interest based on the greater of prime or 6% with interest payments due monthly, maturing in April 2010.  In January 2010 the Company renewed this line of credit and increased the open balance to $300,250.  This agreement originally matured in February 2011. In December 2010, the Company renewed the line of credit to December 5, 2011, at the greater of prime plus 1% or 6%.  In December 2011, the Company renewed the line of credit to December 12, 2012, at the greater of prime plus 1% or 6%.  In November of 2012, the Company converted the line of credit to a fixed rate loan due December 2017.  The new term loan accrues interest at a 5.5% annually with monthly installments of $3,287. The current balance relates to the purchase of the 1 acre adjoining the North Augusta, South Carolina property in May 2008 and is collateralized by the residential property on Stanley Drive in Augusta, Georgia.	278,592	284,531
A note payable to an insurance company, secured with a mortgage interest in National Plaza and an assignment of rents.  The note is payable in monthly installments of $35,633, including interest, through June 2015, and bears interest at a fixed rate of 7.875%.	603,100	696,892
A note payable to a regional financial institution collateralized with 17.54 acres of land in North Augusta, South Carolina.  The note is payable in monthly installments of $7,563, including principal and interest, through July 2018, and bears interest at a fixed rate of 5%.	374,872	392,945
A note payable to an insurance company collateralized with approximately 18 acres of land in Columbia County, Georgia, and an assignment of the long-term ground lease.  The note is payable in monthly installments of $17,896, including interest, through May 1, 2027, and bears interest at a fixed rate of 5.85%.	1,993,091	2,017,437
	3,249,655	3,391,805
Less current maturities	(594,891)	(584,491)
	$2,654,764	$2,807,314

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Investment properties for lease, net of accumulated depreciation Parentheticals (Details) (USD $)	3 Months Ended
	Dec. 31, 2013	Sep. 30, 2013	Dec. 31, 2012
Investment properties for lease, net of accumulated depreciation Parentheticals
Depreciation expenses total	$ 31,000		$ 31,000
Percentage of rentable space at National Plaza leased to Publix Supermarkets Inc	81.00%
Area of land sold of Evans Ground Lease in Columbia County, Georgia	18
Monthly rental payments, development period	20,833
Annual rental payments for the first 5 years	500,000
Percentage of rent increasing in years 6, 11, and 16	5.00%
Renewal period	21
Renewal period description	5
Total lease term	50
Land and improvements held for investment or development,	3,639,598	3,639,598
Area of land sold of Evans Ground Lease tract in July 2013	0.24
Value of the land sold Evans Ground	156,000
Gain Recognized by the company	$ 108,000
Area of land for investment or development purposes, in North Augusta, South Carolina, purchased in parcels during 2007 and 2008	19.38
The Company also owns approximately land in south Richmond County, Georgia in acres	85
Parcel along Washington Road in Augusta, Georgia that adjoins the Company's National Plaza investment property in acres	1.1

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RELATED PARTY TRANSACTIONS (Details) (USD $)	Dec. 31, 2013
Related party transaction Details
Loan Proceeds from shareholder during the first quarter of the fiscal	$ 30,000
Interest rate for repayments	6.00%
Amount repaid during the quarter	$ 30,000

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	3 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 100,427	$ 82,942
Adjustments to reconcile net income to Net cash provided by operating activities:
Depreciation and amortization	32,938	32,948
Deferred income tax	(481)	643
Changes in deferred and accrued amounts:	9,648	(9,408)
Net cash provided by operating activities	142,532	107,125
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayments to stockholder	0	(30,000)
Proceeds from stockholder	0	30,000
Principal payments on notes payable	(142,150)	(130,758)
Net cash used in financing activities	(142,150)	(130,758)
Net increase in cash and cash equivalents	382	(23,633)
Cash and cash equivalents, beginning of period	24,599	48,767
Cash and cash equivalents, end of period	24,981	25,134
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid for interest	47,399	55,612
Cash paid for income taxes	$ 0	$ 25,000

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Concentrations

3 Months Ended

Dec. 31, 2013

Concentrations

Concentrations

Note  5 – Concentrations

Substantially all of the Company’s assets consist of real estate located in Richmond and Columbia Counties in the state of Georgia and in North Augusta, South Carolina.  Approximately 99% of the Company’s revenues are earned from two of the Company’s investment properties, National Plaza and the Evans Ground Lease, which comprise approximately 52% and 47% of the Company’s revenues, respectively.   The anchor tenant for National Plaza, Publix Supermarkets, Inc. (“Publix”), a regional food supermarket chain, leases approximately 81% of the space at National Plaza.  The Company generates approximately 37% of its revenues though its lease with Publix.

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Concentrations (Details)	Dec. 31, 2013
Concentrations AS Follows
Percentage of revenues earned from two of the company's investment properties	99.00%
National Plaza Contribution to revenues	52.00%
Contribution to revenues from Evans Ground Lease	47.00%
Percentage of space leased out to Publix Supermarkets Inc	81.00%
Revenues percentage generated through its lease with Publix	37.00%