BONANZA GOLD CORP.

On April 28, 2017, we incorporated a wholly-owned subsidiary Brightlane GP, Corp.  The partners of Brightlane RECA, LP amended their Limited Partnership Agreement to admit Brightlane GP, Corp. as a General Partner of Brightlane RECA LP and the former partner transferred all of its General Partner interests and powers to Brightlane GP, Corp. and withdrew as the General Partner of Brightlane RECA LP.  This resulted in the financial operations of Brightlane Homes, Inc. and associated Brightlane RECA portfolio to be reported on a consolidated basis at April 28, 2017.

Upon the integration of the Brightlane Home, Inc. subsidiary and the associated Brightlane RECA portfolio, the Company recognized a portfolio of notes receivable totaling $4,885,472 with associated debt due to several third parties in the amount of $2,732,866.  This debt is guaranteed by the principals of the former general partner.  Brightlane Homes, Inc. and its subsidiaries have agreed to assist and/or facilitate the refinancing or retirement of the acquisition related debt, as soon as practicable.

On May 19, 2017, Brightlane – CLOC Acquisitions, L.L.C., a Delaware limited liability company and a wholly owned subsidiary of the registrant entered into a $5,000,000 revolving credit facility with Colony American Finance Lender, LLC, a Delaware limited liability company.  This credit facility is for the acquisition of residential homes providing the Company an acquisition vehicle.  General provisions of the this credit facility are an 18 month term at 9%, with a loan to value of 80%.  To date the Company has not utilized this credit facility.

The Holder of the warrants dated 5/13/2013, 5/14/2013 and 7/25/2013 elected to exercise his right to convert the exercisable warrants into common stock prior to their expiration dates and will result in an issuance of 519,662 shares of common stock not yet issued as of June 30, 2017.  

Total revenue for the six months ended June 30, 2017 were primarily attributable to interest and fees collected in association with the Brightlane RECA portfolio, the sale of real estate holdings, as well as rental and management fee income recognized from the operations of our Brightlife Management subsidiary.  For the six months ended June 30, 2017 we had income from interest and fees collected of $82,813 associated with the Brightlane RECA portfolio, we sold two real estate properties for proceeds of $66,077 (after typical closing costs), and generated an additional $10,050 in proceeds from the operations of our Brightlife Management subsidiary that were comprised of management fees and tenant income.  The two real estate properties sold had an initial cost basis of $44,000.  The resulting gross profit to the Company was $114,940 during the six months ended June 30, 2017.  During the Six months ended June 30, 2017 and 2016, we had selling, general and administrative expenses of $445,563 and $184,607 respectively.  During the six months ended June 30, 2017 and 2016 we incurred interest expenses of $23,388 and $11,337 respectively