10-Q - Korth Direct Mortgage Inc. (0001695963) (Filer)

Wed, Aug 14, 9:00 PM (32 days ago)

Korth Direct Mortgage Inc. reported a net loss of $1,433,700 for the six months ended June 30, 2024, compared to a loss of $551,085 in the same period of 2023, primarily due to decreased unrealized gains on mortgages and a decline in new loan originations. Total revenues increased to $5,183,564 from $4,862,296, driven by higher origination and servicing revenues. However, gross profit improved to $3,685,850, reflecting additional rental income from properties acquired through foreclosure. The company’s total assets fell to $525,592,133 from $549,337,262, mainly due to a $27.7 million decrease in mortgages owned after foreclosures and payoffs. Operating expenses surged by 41% to $4,682,208, largely due to increased legal and professional fees linked to defaults. Cash and restricted cash totaled $18,030,749, down from $28,044,766. KDM anticipates raising further capital to support lending operations and is actively managing distressed loans, with three loans in default as of the reporting date. The firm’s financial health is marked by uncertainties in loan performance and market conditions, impacting future operations.