Thu, May 15, 9:19 PM (39 days ago)
**Korth Direct Mortgage Inc. (KDM, Ticker: KDM) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $4,698,227 (up 127% YoY) - **Gross Profit:** $3,107,922 (up 127% YoY) - **Net Income:** $846,098 (reversal from a $1,277,443 loss in Q1 2024) - **Total Assets:** $524,435,765 (up from $521,851,543 in Q4 2024) - **Cash and Cash Equivalents:** $6,879,240 (up from $2,898,659 in Q4 2024) - **Mortgages Owned:** $417,455,748 (down from $451,974,989 in Q4 2024) - **Mortgage Secured Notes Payable:** $453,749,757 (up from $450,264,519 in Q4 2024) **Profit Margins:** - **Gross Profit Margin:** ~66% (up from ~69% in Q1 2024) - **Net Profit Margin:** ~18% (reversal from -62% in Q1 2024) **Cash Flow:** - **Net Cash Provided by Operating Activities:** $1,492,121 (reversal from -$2,880,972 in Q1 2024) - **Net Cash Used in Investing Activities:** -$11,494 (down from -$2,494 in Q1 2024) - **Net Cash Provided by Financing Activities:** $152,333 (reversal from -$481,250 in Q1 2024) **Earnings Changes:** - **Earnings per Share (EPS):** $0.17 (reversal from -$0.35 in Q1 2024) **Quarterly Performance Discussion:** - **Revenue Growth:** Driven by additional rental revenues from acquired properties and increased origination revenue. - **Expense Management:** Operating expenses increased by 21% YoY, primarily due to office expenses and depreciation related to defaults and foreclosures. - **Other Income:** Significant improvement due to unrealized gains on mortgages. **Trends and Uncertainties:** - **Mortgage Portfolio:** Decline in mortgage assets offset by an increase in real estate assets due to foreclosure activity. - **Liquidity:** Improved liquidity with increased cash and cash equivalents. - **Capital Raising:** Plans to raise additional capital to fund lending and development. **Future Operations Impact:** - **Property Management:** Actively managing acquired properties to maximize value. - **Capital Raising:** Continuing to raise capital through KDM Capital Partners LP. - **Loan Portfolio:** One CM loan in payment default, with all pending foreclosures from 2023 and 2024 completed. **Market Risk and Controls:** - **Market Risk:** No material positions subject to market risk. - **Internal Controls:** Effective internal control over financial reporting as of March 31, 2025.