Korth Direct Mortgage Inc.

CIK:0001695963|SEC Filings

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
REVENUES
Total Revenues	$ 6,442,463	$ 8,854,882
COST OF REVENUES
Broker Underwriting Expense	236,430	1,289,684
Administrative Expenses	776,308	1,131,931
Total Cost of Revenues	1,012,738	2,421,615
GROSS PROFIT	5,429,725	6,433,267
OPERATING EXPENSES
Office	1,583,117	1,307,189
Compensation and Related Benefits	1,827,579	1,898,099
Professional & Legal	617,493	458,575
Advertising	65,360	62,940
Depreciation	921,699	916,098
Total Expenses	5,015,248	4,642,901
Income From Operations	414,477	1,790,366
Other Income (Expense)
Unrealized Gain (Loss) on Mortgages	2,115,977	(972,647)
Unrealized Loss on Mortgage Secured Notes	(15,519)	(29,541)
Unrealized (Loss) Gain on Investment	(27,605)	1,496
Interest Income		13,895
Interest Expense	(1,670,758)	(1,033,443)
Realized Gain on Foreclosure		5,557,032
Realized Loss on Loans Held for Sale		(4,417)
Realized Gain on Securities		58,666
Employee Retention Credit		45,000
Change in Fair Value of Mortgage Secured Notes		9,000,000
Loss on Foreclosures		(9,000,000)
Total Other Income	402,095	3,636,041
Income before provision for income taxes	816,572	5,426,407
Provision for income taxes	214,400	1,360,049
Net Income	602,172	4,066,358
Less: Net Income attributable to non-controlling interest	386,631	81,198
Net Income attributable to Korth Direct Mortgage, Inc	215,541	3,985,160
Series A Preferred Dividends	345,000	345,000
Series B Preferred Dividends	617,500	617,500
Net (Loss) Income attributable to common stockholders	(746,959)	3,022,660
Origination Revenue [Member]
REVENUES
Total Revenues	594,248	1,578,779
Service [Member]
REVENUES
Total Revenues	1,407,393	2,263,827
Underwriting Income [Member]
REVENUES
Total Revenues	30,200	12,750
Leasing Revenue [Member]
REVENUES
Total Revenues	2,342,697	3,181,453
Investment Interest [Member]
REVENUES
Total Revenues	1,734,082	1,564,298
Other Revenue [Member]
REVENUES
Total Revenues	$ 333,843	$ 253,775

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Net Cash (Used in) Provided by Operating Activities:
Net Income	$ 602,172	$ 4,066,358
Adjustments to Reconcile Net Income to:
Unrealized (Gain) Loss on Mortgages Owned	(2,115,977)	972,647
Unrealized Loss on Mortgage Secured Notes	15,519	29,541
Unrealized Loss (Gain) on Investment	27,605	(1,496)
Realized Gain on Foreclosure		(5,557,032)
Realized Loss on Loans Held for Sale		4,417
Gain on cancellation of debt		(9,000,000)
Loss on Foreclosures		9,000,000
Stock-Based Compensation		26,778
Depreciation	921,699	916,098
Amortization of loan costs	57,305	57,305
Deferred rent expense from operating lease	(625)	(10,479)
Deferred income taxes	214,400	1,338,164
Changes in Operating Assets and Liabilities:
Mortgage Secured Notes Issued	(1,600,000)
Restricted Investment		1,192,510
Portfolio Loans	(1,535,667)	(176,742)
Loans Held For Sale, at Fair Value	(206,977)	312,712
Other Assets	(1,095,337)	(456,672)
Deferred Revenue, net	36,617	(320,703)
Escrow Payable	(1,631,767)	(5,468,549)
Other Liabilities and Payables	2,053,241	42,046,899
New Mortgage Lending		(2,871,447)
Mortgage Loans Matured/Paid Off	15,986,170	(4,932,979)
Total Adjustments	11,126,206	27,100,972
NET CASH PROVIDED BY OPERATING ACTIVITIES	11,728,378	31,167,330
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment	(467,411)	(85,378)
Disposals of property and equipment		9,015,164
NET CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES	(467,411)	8,929,786
CASH FLOWS FROM FINANCING ACTIVITIES
Payment of Series A/B preferred stock dividends	(962,500)	(962,500)
Warehouse Line of Credit “LOC”	(11,678,358)
(Redemptions) Contributions to Fund	(1,817,948)	507,843
NET CASH USED IN FINANCING ACTIVITIES	(14,458,806)	(454,657)
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	(3,197,839)	39,642,459
CASH, CASH EQUIVALENTS AND RESTRICTED CASH – Beginning of Period	10,267,753	18,330,119
CASH, CASH EQUIVALENTS AND RESTRICTED CASH – End of Period	7,069,914	57,972,578
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION
Cash paid during the six months for interest	1,600,953	976,139
Federal	18,850	1,338,164
State	2,405
NON-CASH INVESTING AND FINANCING ACTIVITIES
Fair value of assets acquired in settlement in lieu of foreclosure		40,033,898
Land aquired through assumption of existing mortgage debt	$ 10,769,605

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($)	Jun. 30, 2026	Dec. 31, 2025
ASSETS
Cash and Cash Equivalents	$ 2,190,533	$ 5,354,168
Restricted Cash	4,879,381	4,913,585
Mortgages Owned	264,456,052	285,416,050
Mortgage Servicing Rights, at Fair Value	8,224,732	6,108,755
Portfolio Loans	7,226,651	5,690,984
Loans Held for Sale	206,977
Securities	29,437	41,991
Right-of-Use (ROU) Leased Asset	449,390	560,599
Goodwill	110,000	110,000
Property and equipment, net of depreciation	69,361,565	69,691,129
Land - Joint Venture	10,769,605
Other Assets	3,934,401	2,966,752
TOTAL ASSETS	371,838,724	380,854,013
LIABILITIES
Escrows Payable	2,506,852	4,138,619
Lease Liability	451,093	562,927
Deferred Revenue, net	1,112,870	1,076,253
Deferred Tax Liability, net	1,693,032	1,478,632
Line of Credit Payable	3,000,000	3,000,000
Mortgage Secured Notes Payable	313,136,786	319,683,008
Warehouse Line of Credit, net	5,762,834	17,383,887
Notes Payable - Joint Venture	10,769,605
Other Liabilities and Payables	5,875,529	3,822,288
Total Liabilities	344,308,601	351,145,614
STOCKHOLDERS' EQUITY
Accumulated Deficit	(6,416,754)	(5,669,795)
Additional Paid-in Capital	29,685,818	29,685,818
Common Stock, $0.001 par value, 60,000,000 shares authorized 5,000,000 shares issued and outstanding at June 30, 2026 and December 31, 2025	5,000	5,000
Non-Controlling Interest	4,255,580	5,686,897
Total Stockholders' Equity	27,530,123	29,708,399
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	371,838,724	380,854,013
Series A Preferred Stock [Member]
STOCKHOLDERS' EQUITY
Preferred stock value	460	460
Series B Preferred Stock [Member]
STOCKHOLDERS' EQUITY
Preferred stock value	$ 19	$ 19