Harbor Custom Development, Inc.

CIK:0001784567|SEC Filings

Consolidated Statements of Operations - USD ($)	12 Months Ended
Consolidated Statements of Operations - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Income Statement [Abstract]
Sales	$ 59,256,700	$ 55,414,300
Cost of Sales	110,691,900	55,866,800
Gross Loss	(51,435,200)	(452,500)
Operating Expenses	9,754,200	16,237,700
Operating Loss	(61,189,400)	(16,690,200)
Other Income (Expense)
Interest Expense	(2,602,600)	(1,760,000)
Interest Income	151,000	465,600
Loss on Sale of Equipment	(47,700)	(3,433,800)
Other Income	51,500	38,000
Total Other Expense	(2,447,800)	(4,690,200)
Bankruptcy Expense	392,500
Loss Before Income Tax	(64,029,700)	(21,380,400)
Income Tax Expense (Benefit)	4,589,400	(4,458,200)
Net Loss	(68,619,100)	(16,922,200)
Net Loss Attributable to Non-controlling interests		(500)
Preferred Dividends	(7,614,800)	(7,759,900)
Net Loss Attributable to Common Stockholders	$ (76,233,900)	$ (24,681,600)
Loss Per Share - Basic	$ (39.19)	$ (35.29)
Loss Per Share - Diluted	$ (39.19)	$ (35.29)
Weighted Average Common Shares Outstanding - Basic	1,945,233	699,490
Weighted Average Common Shares Outstanding - Diluted	1,945,233	699,490

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
Consolidated Statements of Cash Flows - USD ($)	Dec. 31, 2023	Dec. 31, 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net Loss	$ (68,619,100)	$ (16,922,200)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	333,500	1,407,400
Amortization of right of use assets	176,900	542,800
Loss on sale of equipment	47,700	3,433,800
Provision for loss on contract	153,400	159,100
Impairment loss on real estate	48,825,700	3,602,600
Impairment loss on note receivable		1,200,000
Stock compensation	218,100	515,500
Amortization of revolver issuance costs	640,300	457,400
Net change in assets and liabilities:
Accounts receivable	1,427,200	(593,500)
Contract assets		2,167,200
Notes receivable	3,575,300	(3,725,300)
Prepaid expenses and other assets	4,413,300	(1,499,900)
Real estate	2,937,900	(84,637,700)
Deferred tax asset	4,659,300	(4,010,300)
Accounts payable and accrued expenses	(6,093,000)	3,428,100
Contract liabilities	(625,500)	338,300
Deferred revenue	(2,100)	7,200
Payments on right of use liability, net of incentives	(224,600)	255,800
NET CASH USED IN OPERATING ACTIVITIES	(8,155,700)	(93,873,700)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment		(2,646,400)
Proceeds on the sale of equipment	218,100	5,113,300
NET CASH PROVIDED BY INVESTING ACTIVITIES	218,100	2,466,900
CASH FLOWS FROM FINANCING ACTIVITIES
Construction loans	65,836,600	89,559,300
Payments on construction loans	(48,578,300)	(17,115,900)
Financing fees construction loans	(1,864,000)	(2,470,200)
Related party construction loans	(8,177,300)	8,669,900
Payments on related party construction loans	(75,000)	(14,071,800)
Financing fees related party construction loans		(105,400)
Revolving line of credit loan		25,000,000
Payments on revolving line of credit loan	(10,821,300)
Financing fees revolving line of credit loan		(1,097,700)
Payments on note payable - insurance	(645,300)	(1,115,500)
Payments on equipment loans	(2,057,100)	(3,894,200)
Payments on financing leases	(74,800)	(104,100)
Preferred dividends	(634,700)	(7,796,100)
Repurchase of common stock		(437,700)
Proceeds from common stock offering	602,600
Proceeds from pre-funded and common warrants offering	8,335,400
Proceeds from exercise of stock options		8,600
Proceeds from exercise of warrants		413,700
NET CASH PROVIDED BY FINANCING ACTIVITIES	1,846,800	75,442,900
NET DECREASE IN CASH AND RESTRICTED CASH	(6,090,800)	(15,963,900)
CASH AND RESTRICTED CASH AT BEGINNING OF YEAR	10,262,900	26,226,800
CASH AND RESTRICTED CASH AT END OF YEAR	4,172,100	10,262,900
SUPPLEMENTAL CASH FLOW INFORMATION
Interest paid	14,760,300	8,635,600
Bankruptcy items - Professional fees and employee compensation paid	261,000
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES
Termination of right of use leases		346,900
Amortization of debt discount capitalized	3,023,800	2,307,000
Promissory notes issued for earnest money	300,000	450,000
Cancellation of promissory note for earnest money	750,000
Financing of insurance	796,200	590,100
Conversion of finance lease to equipment loan		394,800
Termination of finance leases	79,700
Financing of fixed assets additions		110,000
Dividends declared but not paid	7,614,800	634,600
Conversion of preferred to common stock		3,595,400
Exercise of Pre-funded warrants	$ 6,723,000

Consolidated Balance Sheets - USD ($)	Dec. 31, 2023	Dec. 31, 2022
ASSETS
Cash	$ 3,574,500	$ 9,665,300
Restricted Cash	597,600	597,600
Accounts Receivable, net	279,800	1,707,000
Note Receivable, net	950,000	4,525,300
Prepaid Expense and Other Assets	1,250,900	5,318,100
Real Estate	156,738,400	205,478,200
Property and Equipment, net	1,610,500	2,289,500
Right of Use Assets	1,749,200	1,926,100
Deferred Tax Asset, net		4,659,300
TOTAL ASSETS	166,750,900	236,166,400
LIABILITIES
Accounts Payable and Accrued Expenses	5,945,900	14,090,700
Dividends Payable		634,700
Contract Liabilities	25,300	497,400
Deferred Revenue	49,900	52,000
Note Payable - Insurance	529,300	378,500
Revolving Line of Credit Loan, net of Unamortized Debt Discount of $0 and $0.6 million respectively	14,178,700	24,359,700
Equipment Loans		2,057,100
Finance Leases		154,500
Right of Use Liabilities		2,779,400
Total Liabilities Not Subject to Compromise	146,051,400	160,610,500
Liabilities Subject to Compromise	12,221,500
TOTAL LIABILITIES	158,272,900	160,610,500
COMMITMENTS AND CONTINGENCIES - SEE NOTE 14
STOCKHOLDERS’ EQUITY
Preferred Stock, no par value per share, 10,000,000 shares authorized and 3,799,799 issued and outstanding at December 31, 2023 and December 31, 2022	62,912,100	62,912,100
Common Stock, no par value per share, 50,000,000 shares authorized and 2,686,431 issued and outstanding at December 31, 2023 and 718,835 issued and outstanding at December 31, 2022	43,030,200	35,704,700
Additional Paid In Capital	3,096,800	1,266,300
Accumulated Deficit	(100,561,100)	(24,327,200)
TOTAL STOCKHOLDERS’ EQUITY	8,478,000	75,555,900
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	166,750,900	236,166,400
Nonrelated Party [Member]
LIABILITIES
Construction Loans - Related Parties, net of Unamortized Debt Discount of $0 and $0.1 million respectively	125,322,300	107,483,700
Related Party [Member]
LIABILITIES
Construction Loans - Related Parties, net of Unamortized Debt Discount of $0 and $0.1 million respectively		$ 8,122,800