Core Insights - Manhattan Bridge Capital, Inc. reported a net income of approximately $1,202,000 for Q3 2025, a decrease of 14.1% from $1,399,000 in Q3 2024, primarily due to reduced revenue [1][2] - Total revenues for Q3 2025 were approximately $2,036,000, down 12.0% from $2,313,000 in Q3 2024, mainly driven by lower interest income and reduced origination fees [2][4] - For the nine months ended September 30, 2025, net income was approximately $3,988,000, a decrease of 6.9% from $4,285,000 in the same period of 2024 [3][4] Financial Performance - Q3 2025 net income per share was $0.11, compared to $0.12 in Q3 2024 [1][3] - Total revenues for the nine months ended September 30, 2025, were approximately $6,665,000, down 9.1% from $7,330,000 in the same period of 2024 [4] - Interest income from loans for Q3 2025 was approximately $1,770,000, compared to $1,953,000 in Q3 2024 [2][14] Revenue Breakdown - Interest income on secured commercial loans accounted for approximately $1,770,000 in Q3 2025, down from $1,953,000 in Q3 2024 [2][14] - Origination fees for Q3 2025 were approximately $265,000, compared to $360,000 in Q3 2024 [2][14] - For the nine months ended September 30, 2025, interest income was approximately $5,504,000, down from $6,128,000 in the same period of 2024 [4][14] Operational Insights - As of September 30, 2025, total stockholders' equity was approximately $43,317,000 [5] - The company continues to focus on deploying available funds into safe and secure loans despite challenges in the real estate market [6][7] - The company offers short-term secured loans primarily to real estate investors in the New York metropolitan area and Florida [7]

Financial Performance - Total revenue for the three months ended September 30, 2025, was $2,035,753, a decrease of 12.0% compared to $2,313,333 for the same period in 2024[16] - Net income for the three months ended September 30, 2025, was $1,202,180, down 14.1% from $1,399,286 in the prior year[16] - Net income for the nine months ended September 30, 2025, was $3,988,282, a decrease of 6.9% compared to $4,284,550 for the same period in 2024[28] - For the nine months ended September 30, 2025, total revenues were approximately $6,665,000, a decrease of $665,000 or 9.1% compared to the same period in 2024[75] - Basic and diluted net income per common share for the three months ended September 30, 2025, was $0.11, compared to $0.12 for the same period in 2024[16] Assets and Liabilities - Total assets decreased to $59,988,878 as of September 30, 2025, from $67,360,816 as of December 31, 2024, a reduction of 11.0%[13] - Total liabilities decreased to $16,672,006 as of September 30, 2025, from $24,095,689 as of December 31, 2024, a decline of 30.6%[13] - Loans receivable decreased to $57,961,155 as of September 30, 2025, from $65,405,731 as of December 31, 2024, representing a decline of 11.0%[13] - The Company’s loans receivable totaled $58,469,888 as of September 30, 2025, down from $65,974,265 at December 31, 2024, indicating a decrease of 11.4%[42] Cash Flow - Net cash provided by operating activities increased to $3,806,024 from $3,660,999, reflecting a growth of 4% year-over-year[28] - Cash flows from investing activities showed a significant increase, with net cash provided amounting to $7,517,081 compared to $4,726,869 in the previous year, representing a growth of 59.5%[28] - Net cash provided by investing activities rose to approximately $7,517,000 for the nine months ended September 30, 2025, compared to approximately $4,727,000 for the same period in 2024[81] - Net cash used in financing activities was $11,325,000 for the nine months ended September 30, 2025, an increase from approximately $9,912,000 in the prior year[82] Expenses - General and administrative expenses for the three months ended September 30, 2025, increased to $413,518, up 8.5% from $380,482 in the prior year[16] - General and administrative expenses increased to approximately $1,305,000 for the nine months ended September 30, 2025, reflecting an increase of $80,000, or 6.5% from the prior year[77] - The Company paid $1,346,361 in interest during the period, a decrease from $1,816,980 in the same period last year, reflecting a reduction of 26%[28] Dividends - The company declared dividends payable of $1,315,445 for both September 30, 2025, and September 30, 2024, indicating a consistent dividend policy[18] - The Company declared and payable dividends of $1,315,445, consistent with the previous year[28] Credit and Loans - The outstanding amount under the Amended Credit Agreement was $9,049,624 as of September 30, 2025, with an interest rate of approximately 7.8%[47] - The company has committed $4,871,256 in construction loans that can be drawn by borrowers when certain conditions are met as of September 30, 2025[68] - The Webster Credit Line provides a credit line of $32.5 million until February 28, 2026, with interest rates based on SOFR plus a premium[83] - The company plans to redeem its senior secured notes prior to maturity using proceeds from a replacement credit facility or the Webster Credit Line[50] - The company intends to continue selectively originating loans secured by first mortgages on real estate in the New York metropolitan area and Florida[65] Other Information - The accumulated deficit as of September 30, 2025, was $(1,196,218), an improvement from $(1,238,165) as of December 31, 2024[13] - The company has no loan impairments as of September 30, 2025, with all borrowers either paying interest or in the process of signing extension agreements[43] - The company adopted a share buyback program on April 11, 2023, repurchasing 56,294 common shares at an aggregate cost of $271,468[54] - Stock-based compensation expense recognized for the three-month periods ended September 30, 2025, and 2024 was $3,266[56] - The company has never foreclosed on a property since commencing business in 2007, although it filed a foreclosure lawsuit in June 2023[64] - Cash balance as of September 30, 2025 was approximately $186,000, compared to $178,000 at December 31, 2024[79] - The company expects current cash balances and cash flows from operations to be sufficient to fund operations over the next 12 months[91]

Core Insights - Ashford Hospitality Trust has successfully refinanced the mortgage loan for the 673-room Renaissance Hotel in Nashville, Tennessee, indicating positive developments in financing markets [1][4]. Financing Details - The new non-recourse loan has a balance of $218.1 million, with a two-year term and three one-year extension options, maturing in September 2030. The loan features an interest-only structure with a floating interest rate of SOFR + 2.26% [2]. - The previous loan was $267.2 million with a higher floating interest rate of SOFR + 3.98% [2]. Preferred Equity Investment - In conjunction with the refinancing, the preferred equity investment on the property was increased by $53.0 million, and the all-in rate of return on the preferred equity was reduced from 14% to 11.14% [3]. Management Commentary - The President and CEO of Ashford Trust expressed optimism regarding the improvement in financing markets, which facilitated the refinancing and is expected to result in significant annual interest expense savings [4].

Core Viewpoint - Ashford Hospitality Trust has successfully extended its Highland mortgage loan secured by 18 hotels, providing the company with additional time to benefit from anticipated interest rate cuts and improved financial metrics ahead of a longer-term refinancing [1][2]. Group 1: Loan Extension Details - The original final maturity date of the Highland mortgage loan was April 9, 2025, which has now been extended to January 9, 2026, with a potential further extension to July 9, 2026, subject to certain conditions [1]. - The current balance of the loan has been reduced to $733.6 million, representing approximately 68% of the appraised value of nearly $1.1 billion [2]. Group 2: Company Overview - Ashford Hospitality Trust is a real estate investment trust (REIT) that primarily invests in upper upscale, full-service hotels [3].

Core Viewpoint - Manhattan Bridge Capital, Inc. reported a decrease in total revenues for the second quarter of 2025, primarily due to lower interest income from a reduction in loans receivable, despite an increase in origination fees [1][3]. Financial Performance - Total revenues for Q2 2025 were approximately $2,355,000, down from $2,443,000 in Q2 2024, representing a decrease of $88,000 or 3.6% [1]. - For the first half of 2025, total revenues were approximately $4,629,000, compared to $5,016,000 for the same period in 2024, a decrease of $387,000 or 7.7% [3]. - Net income for Q2 2025 was approximately $1,413,000, or $0.12 per share, slightly up from $1,409,000, or $0.12 per share in Q2 2024 [2]. - For the first half of 2025, net income was approximately $2,786,000, or $0.24 per share, down from $2,885,000, or $0.25 per share in the first half of 2024, a decrease of $99,000 or 3.4% [4]. Revenue Breakdown - In Q2 2025, interest income from loans was approximately $1,899,000, down from $2,033,000 in Q2 2024, while origination fees increased to approximately $456,000 from $411,000 [1]. - For the first half of 2025, interest income was approximately $3,733,000, compared to $4,175,000 in the first half of 2024, with origination fees increasing to approximately $896,000 from $841,000 [3]. Market Conditions - The CEO noted that interest rates are impacting the real estate markets, leading to a slower pace of loan closings and longer loan terms, with a higher amount of extended loans beyond the initial one-year term [5]. Shareholder Equity - As of June 30, 2025, total shareholders' equity was approximately $43,427,000, reflecting a slight increase from $43,265,127 at the end of 2024 [5]. Company Overview - Manhattan Bridge Capital, Inc. specializes in offering short-term secured loans to real estate investors for property acquisition and improvement in the New York metropolitan area and Florida [6].

[Forward Looking Statements](index=4&type=section&id=Forward%20Looking%20Statements) This report contains forward-looking statements, involving inherent risks and uncertainties that may cause actual results to differ materially - This report contains forward-looking statements, identified by words like "believe," "expect," "intend," and "estimate," which involve inherent risks and uncertainties. Actual results may differ materially due to factors such as limitations on loan origination, market competition, reliance on the CEO, potential losses from overestimated yields or incorrect collateral valuation, "lender liability" claims, incomplete due diligence, borrower concentration, stock distributions, interest rate impacts, and the ability to extend or refinance credit lines and notes[9](index=9&type=chunk) [Part I](index=5&type=section&id=Part%20I%20Financial%20Information) This section presents unaudited condensed consolidated financial statements and management's analysis of financial condition [Item 1. Condensed Consolidated Financial Statements (unaudited)](index=5&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(unaudited)) These unaudited condensed consolidated financial statements present the company's financial position, performance, equity, and cash flows [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets%20as%20of%20June%2030%2C%202025%20and%20December%2031%2C%202024%20(Audited)) This section presents the company's consolidated balance sheets, detailing assets, liabilities, and equity | Metric | June 30, 2025 (unaudited) | December 31, 2024 (audited) | Change (Absolute) | Change (%) | | :------------------------------------- | :-------------------------- | :-------------------------- | :---------------- | :--------- | | **Assets** | | | | | | Loans receivable, net | $65,217,737 | $65,405,731 | $(187,994) | -0.29% | | Interest and other fees receivable | $1,877,218 | $1,521,033 | $356,185 | 23.42% | | Cash | $208,767 | $178,012 | $30,755 | 17.28% | | Total assets | $67,594,582 | $67,360,816 | $233,766 | 0.35% | | **Liabilities** | | | | | | Line of credit | $16,523,205 | $16,427,874 | $95,331 | 0.58% | | Senior secured notes, net | $5,940,557 | $5,903,015 | $37,542 | 0.64% | | Dividends payable | $1,315,445 | $1,315,445 | $0 | 0.00% | | Total liabilities | $24,167,711 | $24,095,689 | $72,022 | 0.30% | | **Stockholders' Equity** | | | | | | Total stockholders' equity | $43,426,871 | $43,265,127 | $161,744 | 0.37% | | Total liabilities and stockholders' equity | $67,594,582 | $67,360,816 | $233,766 | 0.35% | [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations%20for%20the%20Three%20and%20Six%20Month%20Periods%20Ended%20June%2030%2C%202025%20and%202024) This section presents consolidated statements of operations, detailing revenues and expenses for the specified periods | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change (Absolute) | Change (%) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change (Absolute) | Change (%) | | :------------------------------------- | :------------------------------- | :------------------------------- | :---------------- | :--------- | :----------------------------- | :----------------------------- | :---------------- | :--------- | | Interest income from loans | $1,899,403 | $2,032,687 | $(133,284) | -6.56% | $3,733,317 | $4,175,174 | $(441,857) | -10.58% | | Origination fees | $455,833 | $410,528 | $45,305 | 11.04% | $895,632 | $841,119 | $54,513 | 6.48% | | Total revenue | $2,355,236 | $2,443,215 | $(87,979) | -3.60% | $4,628,949 | $5,016,293 | $(387,344) | -7.72% | | Interest and amortization of deferred financing costs | $506,250 | $603,230 | $(96,980) | -16.08% | $957,615 | $1,293,819 | $(336,204) | -26.00% | | General and administrative expenses | $437,785 | $434,282 | $3,503 | 0.81% | $891,355 | $844,560 | $46,795 | 5.54% | | Net income | $1,412,968 | $1,409,053 | $3,915 | 0.28% | $2,786,102 | $2,885,264 | $(99,162) | -3.44% | | Basic and diluted net income per common share | $0.12 | $0.12 | $0.00 | 0.00% | $0.24 | $0.25 | $(0.01) | -4.00% | [Consolidated Statements of Changes in Stockholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity%20for%20the%20Three%20and%20Six%20Month%20Periods%20Ended%20June%2030%2C%202025%20and%202024) This section presents consolidated statements of changes in stockholders' equity for the three and six-month periods | Metric | June 30, 2025 (Six Months) | June 30, 2024 (Six Months) | Change (Absolute) | Change (%) | | :------------------------------------- | :------------------------- | :------------------------- | :---------------- | :--------- | | Balance, January 1 | $43,265,127 | $42,932,706 | $332,421 | 0.77% | | Non-cash compensation | $6,532 | $6,532 | $0 | 0.00% | | Dividends paid | $(1,315,445) | $(1,315,445) | $0 | 0.00% | | Dividends declared and payable | $(1,315,445) | $(1,315,445) | $0 | 0.00% | | Net income | $2,786,102 | $2,885,264 | $(99,162) | -3.44% | | Balance, June 30 | $43,426,871 | $43,183,812 | $243,059 | 0.56% | - The company declared and paid dividends of **$1,315,445** for both the three and six-month periods ended June 30, 2025 and 2024[19](index=19&type=chunk)[21](index=21&type=chunk)[23](index=23&type=chunk)[25](index=25&type=chunk) - Non-cash compensation expense was **$3,266** for the three-month periods and **$6,532** for the six-month periods ended June 30, 2025 and 2024[19](index=19&type=chunk)[21](index=21&type=chunk)[23](index=23&type=chunk)[25](index=25&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows%20for%20the%20Six%20Month%20Periods%20Ended%20June%2030%2C%202025%20and%202024) This section presents consolidated statements of cash flows, detailing operating, investing, and financing activities | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change (Absolute) | Change (%) | | :------------------------------------- | :----------------------------- | :----------------------------- | :---------------- | :--------- | | Net cash provided by operating activities | $2,407,080 | $2,425,248 | $(18,168) | -0.75% | | Net cash provided by investing activities | $136,359 | $6,409,999 | $(6,273,640) | -97.87% | | Net cash used in financing activities | $(2,535,559) | $(10,421,313) | $7,885,754 | -75.67% | | Net increase (decrease) in cash | $7,880 | $(1,586,066) | $1,593,946 | -100.50% | | Cash and restricted cash, end of period | $209,642 | $105,929 | $103,713 | 97.91% | - Cash paid for interest decreased from **$1,297,587** in 2024 to **$903,251** in 2025 for the six-month period[27](index=27&type=chunk) - Dividends paid were **$2,630,890** in 2025 and **$2,602,518** in 2024 for the six-month period[27](index=27&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes provide essential details on the company's accounting policies, financial instruments, and significant financial information [1. Description of the Company](index=9&type=section&id=1.%20DESCRIPTION%20OF%20THE%20COMPANY) This section describes Manhattan Bridge Capital, Inc. as a hard money lender for real estate investors - Manhattan Bridge Capital, Inc. (MBC) and its subsidiary, MBC Funding II Corp., provide short-term, secured, non-banking loans (hard money loans) to real estate investors for property acquisition, renovation, rehabilitation, or development in the New York metropolitan area (including New Jersey and Connecticut) and Florida[30](index=30&type=chunk)[31](index=31&type=chunk) - The condensed consolidated financial statements are unaudited, prepared in accordance with U.S. GAAP for interim financial information, and include normal recurring accruals[30](index=30&type=chunk) - Interest income from commercial loans is recognized as earned over the loan period, and loans receivable are presented at cost, net of deferred origination and other fees amortized over the loan term[34](index=34&type=chunk) [2. Recently Issued Technical Accounting Pronouncements](index=9&type=section&id=2.%20RECENTLY%20ISSUED%20TECHNICAL%20ACCOUNTING%20PRONOUNCEMENTS) This section addresses the anticipated impact of recently issued accounting standards on the company's financials - Management does not anticipate any material effect on the Company's condensed consolidated financial statements from recently issued, but not yet effective, accounting standards[35](index=35&type=chunk) [3. Cash – Restricted](index=9&type=section&id=3.%20CASH%20%E2%80%93%20RESTRICTED) This section details the nature and amount of the company's restricted cash balances - Restricted cash primarily consists of collections from commercial loans, pending clearance, and is mainly allocated to reduce the Webster Credit Line[36](index=36&type=chunk) | Metric | June 30, 2025 | December 31, 2024 | | :------------- | :------------ | :---------------- | | Restricted Cash | $875 | $23,750 | [4. Commercial Loans](index=10&type=section&id=4.%20COMMERCIAL%20LOANS) This section details the company's commercial loan portfolio, including terms, collateral, and concentrations - The Company provides short-term (generally one-year) secured loans to real estate investors in the New York metropolitan area and Florida, primarily secured by real estate collateral and personal guarantees[38](index=38&type=chunk) - As of June 30, 2025, the Company was committed to **$6,286,256** in construction loans, subject to certain borrower conditions[38](index=38&type=chunk) - A single individual holds at least a fifty percent interest in four different entities that collectively owe **$7,889,500**, representing **12.0%** of the loan portfolio, with no affiliation to company officers or directors[39](index=39&type=chunk) | Loan Type | June 30, 2025 | December 31, 2024 (audited) | | :---------------- | :------------ | :-------------------------- | | Residential | $56,645,610 | $56,149,265 | | Commercial | $7,880,000 | $7,380,000 | | Mixed Use | $1,325,000 | $2,445,000 | | Total outstanding loans | $65,850,610 | $65,974,265 | - No loan impairments or provisions for impairment credit losses existed as of June 30, 2025, as borrowers are generally paying interest and signing extension agreements[42](index=42&type=chunk) - Subsequent to June 30, 2025, approximately **$1,480,000** of loans receivable were paid down or paid off[43](index=43&type=chunk) [5. Line of Credit](index=10&type=section&id=5.%20LINE%20OF%20CREDIT) This section outlines the company's Webster Credit Line, including terms, interest rates, covenants, and balances - The Company has a **$32.5 million** Webster Credit Line with Webster Business Credit Corporation, Flushing Bank, and Mizrahi Tefahot Bank Ltd, secured by mortgages and other collateral, expiring February 28, 2026[44](index=44&type=chunk) - The interest rate on the Webster Credit Line is SOFR plus a premium (approximately **7.9%** including a **0.5%** agency fee as of June 30, 2025) or a Base Rate plus **2.00%** and a **0.5%** agency fee[44](index=44&type=chunk) - The credit line includes covenants limiting borrowing amounts, requiring financial ratio maintenance, restricting dividend payments, and limiting share repurchases[45](index=45&type=chunk) - As of June 30, 2025, the Company was in compliance with all covenants, with an outstanding amount of **$16,523,205**[47](index=47&type=chunk) - The CEO, Assaf Ran, provides a personal guarantee for up to **$1,000,000** plus enforcement costs for the Webster Credit Line[46](index=46&type=chunk) [6. Senior Secured Notes](index=12&type=section&id=6.%20SENIOR%20SECURED%20NOTES) This section details the company's senior secured notes, including issuance terms, covenants, and ownership - MBC Funding II issued **$6,000,000** in **6%** senior secured notes, due April 22, 2026, listed on the NYSE American under "LOAN/26", with monthly cash interest payments[48](index=48&type=chunk) - The Indenture requires the aggregate outstanding principal balance of mortgage loans held by MBC Funding II plus cash on hand to be at least **120%** of the Notes' aggregate outstanding principal amount[49](index=49&type=chunk) - The Notes can be redeemed by MBC Funding II after April 22, 2019, at par plus accrued interest, without penalty or premium. No Notes were redeemed as of June 30, 2025[50](index=50&type=chunk) - The Company guarantees MBC Funding II's obligations under the Notes, secured by a pledge of **100%** of MBC Funding II's common shares. The Company plans to refinance the Notes before maturity[52](index=52&type=chunk) - CEO Assaf Ran and CFO Vanessa Kao own **$704,000** and **$288,000** of the Notes, respectively, as of June 30, 2025[53](index=53&type=chunk) [7. Earnings Per Common Share](index=12&type=section&id=7.%20EARNINGS%20PER%20COMMON%20SHARE) This section explains the calculation of basic and diluted earnings per common share - Basic and diluted earnings per share are calculated according to ASC Topic 260, dividing income available to common shareholders by the weighted-average number of common shares outstanding, with diluted EPS including potential dilution from stock options and warrants[54](index=54&type=chunk) [8. Stock–Based Compensation](index=13&type=section&id=8.%20STOCK%E2%80%93BASED%20COMPENSATION) This section details the company's stock-based compensation expense and related restricted share grants - Stock-based compensation expense was **$3,266** for the three-month periods and **$6,532** for the six-month periods ended June 30, 2025 and 2024[55](index=55&type=chunk) - This expense relates to the amortization of the fair value of **1,000,000** restricted shares granted to the CEO on September 9, 2011, amortized over **15 years**[55](index=55&type=chunk) - As of June 30, 2025, all **1,000,000** shares remain restricted, with **$15,242** in unrecognized compensation, vesting in thirds on September 9, 2026, 2027, and 2028[55](index=55&type=chunk) [9. Stockholders' Equity](index=13&type=section&id=9.%20STOCKHOLDERS'%20EQUITY) This section discusses the company's share buyback program and its impact on stockholders' equity - The Company's share buyback program, authorized on April 11, 2023, for up to **100,000** common shares, expired on April 10, 2024[56](index=56&type=chunk) - Under the program, **56,294** common shares were repurchased at an aggregate cost of **$271,468**, including **2,000** shares for **$9,800** in Q1 2024[56](index=56&type=chunk) [10. Segment Reporting](index=13&type=section&id=10.%20SEGMENT%20REPORTING) This section clarifies that the company operates as a single reportable segment in commercial lending - The Company operates as a single reportable segment, focusing on originating, servicing, and managing short-term secured commercial loans to real estate investors[57](index=57&type=chunk) - Management evaluates performance on a consolidated basis, as all loans share similar risk profiles, underwriting standards, and operational processes[57](index=57&type=chunk) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Lending revenue | $2,355,236 | $2,443,215 | $4,628,949 | $5,016,293 | | Net income | $1,412,968 | $1,409,053 | $2,786,102 | $2,885,264 | [11. Subsequent Events](index=13&type=section&id=11.%20SUBSEQUENT%20EVENTS) This section reports significant events that occurred after the balance sheet date - A cash dividend of **$0.115** per share, totaling **$1,315,445**, was paid on July 15, 2025, to shareholders of record on July 8, 2025, as declared by the Board on April 17, 2025[59](index=59&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=14&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance, condition, operational strategies, and liquidity [Business Overview](index=14&type=section&id=Business%20Overview) This section provides an overview of Manhattan Bridge Capital's business model as a real estate finance company - Manhattan Bridge Capital, Inc. is a New York-based real estate finance company specializing in originating, servicing, and managing first mortgage loans, offering short-term, secured, non-banking loans to real estate investors[62](index=62&type=chunk) - Loans are typically secured by a first mortgage lien on real estate and personally guaranteed by the borrower's principals, with initial terms of **12 months** and fixed interest rates of **9% to 12%** per year[63](index=63&type=chunk) - The Company generally receives origination fees (**0% to 2%** of principal) and other fees, with interest payable monthly in arrears[63](index=63&type=chunk) - The Company has not foreclosed on a property since 2007, except for one instance in June 2023 due to a deed transfer without consent, which was rectified by October 2023 with full loan payoff[64](index=64&type=chunk) - New business primarily comes from repeat customers, referrals, banks, brokers, and the CEO's business development efforts[66](index=66&type=chunk) [Results of Operations](index=15&type=section&id=Results%20of%20Operations) This section analyzes the company's financial performance for the three and six-month periods [Three Months Ended June 30, 2025 vs. 2024](index=15&type=section&id=Three%20months%20ended%20June%2030%2C%202025%20compared%20to%20three%20months%20ended%20June%2030%2C%202024) This section compares the company's financial results for the three-month periods ended June 30, 2025 and 2024 | Metric | Q2 2025 | Q2 2024 | Change (Absolute) | Change (%) | | :------------------------------------- | :---------- | :---------- | :---------------- | :--------- | | Total revenue | $2,355,000 | $2,443,000 | $(88,000) | -3.6% | | Interest income from loans | $1,899,000 | $2,033,000 | $(134,000) | -6.6% | | Origination fees | $456,000 | $411,000 | $45,000 | 11.0% | | Interest & amortization of deferred financing costs | $506,000 | $603,000 | $(97,000) | -16.1% | | General and administrative expenses | $438,000 | $434,000 | $4,000 | 0.9% | | Net income | $1,413,000 | $1,409,000 | $4,000 | 0.3% | [Six Months Ended June 30, 2025 vs. 2024](index=15&type=section&id=Six%20months%20ended%20June%2030%2C%202025%20compared%20to%20six%20months%20ended%20June%2030%2C%202024) This section compares the company's financial results for the six-month periods ended June 30, 2025 and 2024 | Metric | H1 2025 | H1 2024 | Change (Absolute) | Change (%) | | :------------------------------------- | :---------- | :---------- | :---------------- | :--------- | | Total revenue | $4,629,000 | $5,016,000 | $(387,000) | -7.7% | | Interest income from loans | $3,733,000 | $4,175,000 | $(442,000) | -10.6% | | Origination fees | $896,000 | $841,000 | $55,000 | 6.5% | | Interest & amortization of deferred financing costs | $958,000 | $1,294,000 | $(336,000) | -26.0% | | General and administrative expenses | $891,000 | $845,000 | $46,000 | 5.4% | | Net income | $2,786,000 | $2,885,000 | $(99,000) | -3.4% | - Total revenue decreased by **3.6%** for the three months and **7.7%** for the six months ended June 30, 2025, primarily due to lower interest income from a reduction in loans receivable, partially offset by increased origination fees[70](index=70&type=chunk)[74](index=74&type=chunk) - Interest and amortization of deferred financing costs decreased by **16.1%** for the three months and **26.0%** for the six months ended June 30, 2025, mainly due to lower SOFR rates and reduced Webster Credit Line borrowings[71](index=71&type=chunk)[75](index=75&type=chunk) - General and administrative expenses saw a slight increase of **0.8%** for the three months and **5.4%** for the six months, driven by higher payroll and NYSE American listing fees, partially offset by reduced legal and travel expenses[72](index=72&type=chunk)[76](index=76&type=chunk) - Net income remained relatively stable for the three months (up **0.28%**) but decreased by **3.4%** for the six months ended June 30, 2025, primarily due to lower interest income, partially offset by decreased interest expense[73](index=73&type=chunk)[77](index=77&type=chunk) [Liquidity and Capital Resources](index=16&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's liquidity, cash flows, and capital resources | Metric | June 30, 2025 | December 31, 2024 | Change (Absolute) | Change (%) | | :------------------------------------- | :------------ | :---------------- | :---------------- | :--------- | | Cash | $209,000 | $178,000 | $31,000 | 17.42% | | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change (Absolute) | Change (%) | | :------------------------------------- | :----------------------------- | :----------------------------- | :---------------- | :--------- | | Net cash provided by operating activities | $2,407,000 | $2,425,000 | $(18,000) | -0.74% | | Net cash provided by investing activities | $136,000 | $6,410,000 | $(6,274,000) | -97.88% | | Net cash used in financing activities | $(2,536,000) | $(10,421,000) | $7,885,000 | -75.66% | - The decrease in net cash from operating activities was due to lower net income and a larger increase in interest and other fees receivable, partially offset by increased deferred origination fees[79](index=79&type=chunk) - Net cash from investing activities significantly decreased due to a smaller net difference between loan collections (**$23.6M**) and issuances (**$23.5M**) in 2025 compared to 2024 (collections **$25.9M** vs. issuances **$19.5M**)[80](index=80&type=chunk) - Net cash used in financing activities decreased significantly, primarily reflecting lower net repayments of the Webster Credit Line in 2025 compared to 2024[81](index=81&type=chunk) - The Webster Credit Line provides **$32.5 million** until February 28, 2026, with an outstanding balance of **$16,523,205** at June 30, 2025, and an interest rate of approximately **7.9%**[82](index=82&type=chunk)[84](index=84&type=chunk) - The Company expects current cash, the Webster Credit Line, and cash flows from operations to be sufficient for the next **12 months** and plans to refinance the Senior Secured Notes before maturity[90](index=90&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=18&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) As a smaller reporting company, the company is exempt from detailed market risk disclosures - The Company is not required to provide quantitative and qualitative disclosures about market risk as it is a smaller reporting company[91](index=91&type=chunk) [Item 4. Controls and Procedures](index=18&type=section&id=Item%204.%20Controls%20and%20Procedures) Management evaluated the effectiveness of disclosure controls and procedures, concluding they are effective [(a) Evaluation and Disclosure Controls and Procedures](index=18&type=section&id=(a)%20Evaluation%20and%20Disclosure%20Controls%20and%20Procedures) This section details management's evaluation and conclusion on the effectiveness of disclosure controls - Management, including the CEO and CFO, assessed the effectiveness of disclosure controls and procedures as of June 30, 2025, and determined them to be effective[92](index=92&type=chunk) [(b) Changes in Internal Control Over Financial Reporting](index=18&type=section&id=(b)%20Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) This section reports on any material changes in internal control over financial reporting - No changes in internal control over financial reporting occurred during the quarter ended June 30, 2025, that materially affected or are reasonably likely to materially affect these controls[93](index=93&type=chunk) [Part II](index=19&type=section&id=Part%20II%20Other%20Information) This section includes other required information not covered in the financial statements or management's discussion [Item 6. Exhibits](index=19&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including officer certifications and XBRL documents | Exhibit No. | Description | | :---------- | :---------------------------------------------------- | | 31.1 | Chief Executive Officer Certification under Rule 13a-14 | | 31.2 | Chief Financial Officer Certification under Rule 13a-14 | | 32.1* | Chief Executive Officer Certification pursuant to 18 U.S.C. section 1350 | | 32.2* | Chief Financial Officer Certification pursuant to 18 U.S.C. section 1350 | | 101.INS | Inline XBRL Instance Document | | 104 | Cover Page Interactive Data File | - Exhibits include certifications from the CEO and CFO under Rule 13a-14 and 18 U.S.C. section 1350, along with various Inline XBRL documents for financial data[95](index=95&type=chunk) [SIGNATURES](index=20&type=section&id=SIGNATURES) This section contains the required signatures of the company's principal executive and financial officers - The report was signed on July 22, 2025, by Assaf Ran, President and Chief Executive Officer, and Vanessa Kao, Chief Financial Officer[99](index=99&type=chunk)

Core Viewpoint - Flagstar Bank is significantly expanding its Specialized Industries Group, which consists of 12 distinct industry verticals aimed at enhancing client service and driving growth through tailored financial solutions [1][2][3] Group Overview - The Specialized Industries Group is led by Adam Feit and is integral to Flagstar's growth strategy, emphasizing industry expertise and relationship-driven client service [2][3] - The group aims to provide strategic guidance, capital access, and product support tailored to each client's business model and market conditions [2] Key Industry Verticals - **Subscription Finance**: Focuses on private equity and venture capital, led by Dan Koch, who has over 20 years of experience in fund finance [4][5] - **Technology, Media & Communications (TMC)**: Led by David Sozio, this vertical leverages over 25 years of industry experience to support clients across the TMC ecosystem [6][7] - **Entertainment**: Managed by Crockett Woodruff, this team specializes in financing for film, TV, music, and live events, drawing on over 20 years of experience [8][9] - **Sports**: Led by Amit Mahajan, this vertical focuses on financing solutions for professional sports leagues and teams, with over 27 years of industry experience [10][11] - **Power & Renewables**: Jerry Wells leads this team, which specializes in financing clean energy projects, leveraging over 15 years of experience [12][13] - **Oil & Gas**: Managed by Michael Dombroski, this vertical provides capital solutions for energy companies, with over 20 years of experience [14][15] - **Insurance**: Led by David Albanesi, this team offers tailored financial solutions for insurance firms, drawing on 30 years of industry experience [16][17] Additional Verticals - Other active verticals within the Specialized Industries Group include Sponsor Finance, Lender Finance, Franchise Finance, Healthcare Finance, and Asset-Based Lending (ABL), each led by seasoned experts [18] Company Overview - Flagstar Financial, Inc. is headquartered in Hicksville, New York, and as of March 31, 2025, had $97.6 billion in assets, $67.1 billion in loans, and $73.9 billion in deposits [19]

Core Viewpoint - Manhattan Bridge Capital, Inc. reported a decrease in net income and total revenues for the first quarter of 2025, primarily due to lower interest income from loans, amidst concerns about the real estate market recovery due to economic uncertainties [1][2][4]. Financial Performance - Net income for the three months ended March 31, 2025, was approximately $1,373,000, or $0.12 per share, compared to $1,476,000, or $0.13 per share for the same period in 2024, reflecting a decrease of $103,000, or 7.0% [1]. - Total revenues for the same period were approximately $2,274,000, down from $2,573,000 in 2024, marking a decrease of $299,000, or 11.6% [2]. - Interest income from loans was approximately $1,834,000 for Q1 2025, down from $2,142,000 in Q1 2024 [2][11]. Balance Sheet Highlights - As of March 31, 2025, total shareholders' equity was approximately $43,326,000 [3]. - Total assets decreased to approximately $65,787,420 from $67,360,816 as of December 31, 2024 [9]. Market Position and Outlook - The CEO noted an initial optimistic outlook among real estate investors, but current economic uncertainties and delayed interest rate reductions have raised concerns about the real estate market's immediate recovery [4]. - The company maintains a low leverage and strong borrower relationships, positioning itself to navigate market challenges effectively [4]. Loan Portfolio - Loans receivable, net of deferred origination and other fees, were approximately $63,672,278 as of March 31, 2025, down from $65,405,731 [9]. - The company offers short-term secured loans primarily to real estate investors for property acquisition and improvement in the New York metropolitan area and Florida [5].

Part I: Financial Information [Condensed Consolidated Financial Statements (unaudited)](index=5&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(unaudited)) The unaudited condensed consolidated financial statements for Q1 2025 show a decrease in total assets to $65.8 million, driven by reduced loans receivable, with net income at $1.37 million, a decline from the prior year due to lower interest income [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets decreased to $65.8 million from $67.4 million at year-end 2024, primarily due to a reduction in net loans receivable, while stockholders' equity slightly increased to $43.3 million Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 (unaudited) | December 31, 2024 (audited) | | :--- | :--- | :--- | | Loans receivable, net | $63,672 | $65,406 | | Total Assets | $65,787 | $67,361 | | Line of credit | $14,826 | $16,428 | | Total Liabilities | $22,461 | $24,096 | | Total Stockholders' Equity | $43,326 | $43,265 | [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) For Q1 2025, total revenue decreased to $2.27 million from $2.57 million in Q1 2024, mainly due to lower interest income from loans, resulting in a net income of $1.37 million, or $0.12 per share Q1 2025 vs Q1 2024 Statement of Operations (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total Revenue | $2,273.7 | $2,573.1 | | Interest Income from Loans | $1,833.9 | $2,142.5 | | Income from Operations | $1,368.6 | $1,471.7 | | Net Income | $1,373.1 | $1,476.2 | | Basic & Diluted EPS | $0.12 | $0.13 | [Consolidated Statements of Changes in Stockholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) Stockholders' equity increased from $43.27 million at the start of 2025 to $43.33 million by the end of Q1 2025, driven by net income partially offset by declared dividends - For Q1 2025, stockholders' equity was impacted by net income of **$1,373,134** and dividends declared of **$1,315,445**[20](index=20&type=chunk) - In Q1 2024, the company repurchased **2,000 shares** of treasury stock for **$9,800**[22](index=22&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For Q1 2025, net cash from operating activities was $1.18 million, investing activities provided $1.76 million, and financing activities used $2.92 million, resulting in a net cash increase of $21,370 Q1 2025 vs Q1 2024 Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $1,180.9 | $1,140.7 | | Net Cash from Investing Activities | $1,758.0 | $564.5 | | Net Cash from Financing Activities | ($2,917.6) | ($2,998.5) | | Net Increase (Decrease) in Cash | $21.4 | ($1,293.4) | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the company's business of providing short-term, secured non-banking real estate loans, with a $64.2 million portfolio as of March 31, 2025, including a 12.0% concentration to four entities controlled by one individual, and outlines its $32.5 million Webster Credit Line and $6.0 million in senior secured notes - The company offers short-term, secured, non–banking loans (hard money loans) to real estate investors in the New York metropolitan area and Florida[29](index=29&type=chunk) - As of March 31, 2025, the loan portfolio had a concentration of **$7,675,000** (**12.0%** of the portfolio) to four different entities in which one individual holds at least a fifty percent interest[36](index=36&type=chunk) - The company has a **$32.5 million** credit line (Webster Credit Line) maturing February 28, 2026, with **$14,825,735** outstanding at an interest rate of approximately **7.9%** as of March 31, 2025[42](index=42&type=chunk)[44](index=44&type=chunk) - The company's subsidiary has **$6,000,000** in **6%** senior secured notes due April 22, 2026[45](index=45&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=14&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's short-term, secured real estate loan business, noting Q1 2025 revenue and net income decreases of 11.6% and 7.0% respectively, primarily due to a smaller loan portfolio, partially offset by a 34.7% reduction in interest expense, with liquidity supported by operations and the Webster Credit Line - The company specializes in originating, servicing, and managing a portfolio of short-term, secured, non-banking first mortgage loans for real estate investors in the New York metropolitan area and Florida[60](index=60&type=chunk) - Loans typically have a maximum initial term of **12 months**, bear interest at a fixed rate of **9% to 13%**, and origination fees range from **0% to 2%**[61](index=61&type=chunk) [Results of Operations](index=16&type=section&id=Results%20of%20Operations) Comparing Q1 2025 to Q1 2024, total revenues decreased by 11.6% to $2.27 million due to lower interest income, while interest and amortization expenses fell by 34.7% to $451,000, and general and administrative expenses rose 10.7% to $454,000, resulting in a 7.0% decline in net income to $1.37 million Q1 2025 vs Q1 2024 Performance Comparison | Metric | Q1 2025 | Q1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenues | ~$2,274,000 | ~$2,573,000 | -11.6% | | Interest & Amortization Costs | ~$451,000 | ~$691,000 | -34.7% | | General & Administrative Expenses | ~$454,000 | ~$410,000 | +10.7% | | Net Income | ~$1,373,000 | ~$1,476,000 | -7.0% | [Liquidity and Capital Resources](index=16&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2025, the company had approximately $201,000 in cash, with liquidity primarily from operations and its $32.5 million Webster Credit Line, and plans to refinance $6.0 million in senior secured notes maturing in April 2026, expecting sufficient funds for the next 12 months - The company's primary sources of liquidity are cash, the Webster Credit Line, and cash flows from operations[87](index=87&type=chunk) - The Webster Credit Line provides **$32.5 million** in aggregate until February 28, 2026, with **$14,825,735** outstanding at an interest rate of approximately **7.9%** as of March 31, 2025[78](index=78&type=chunk)[80](index=80&type=chunk) - The company has **$6,000,000** of **6%** senior secured notes maturing on April 22, 2026, and plans to refinance them prior to maturity[81](index=81&type=chunk)[87](index=87&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=19&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) As a smaller reporting company, the company is exempt from providing quantitative and qualitative disclosures about market risk - As a smaller reporting company, Manhattan Bridge Capital, Inc. is not required to provide quantitative and qualitative disclosures about market risk[89](index=89&type=chunk) [Controls and Procedures](index=19&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - Management concluded that as of March 31, 2025, the company's disclosure controls and procedures are effective[90](index=90&type=chunk) - No material changes to the company's internal control over financial reporting occurred during the fiscal quarter ended March 31, 2025[91](index=91&type=chunk) Part II: Other Information [Exhibits](index=20&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications and Inline XBRL documents - The report includes certifications from the Chief Executive Officer and Chief Financial Officer as required by the Sarbanes-Oxley Act[94](index=94&type=chunk) - Inline XBRL data files are included as exhibits, enhancing the accessibility and analysis of the financial data[94](index=94&type=chunk)

Core Viewpoint - Manhattan Bridge Capital, Inc. reported a slight increase in net income for the year ended December 31, 2024, despite a decrease in total revenue, primarily due to reduced interest expenses and a challenging lending environment for real estate investors [1][2][5]. Financial Performance - Net income for 2024 was approximately $5,591,000, or $0.49 per share, compared to $5,476,000, or $0.48 per share in 2023, marking an increase of $115,000, or 2.1% [1][12]. - Total revenue for 2024 was approximately $9,689,000, down from $9,796,000 in 2023, a decrease of $107,000, or 1.1% [2]. - Interest income from loans increased to approximately $8,047,000 in 2024 from $7,976,000 in 2023, while origination fees decreased to approximately $1,642,000 from $1,820,000 [2][11]. Operating Costs and Expenses - Total operating costs and expenses for 2024 were approximately $4,115,000, down from $4,353,000 in 2023, a decrease of $238,000, or 5.5% [3][11]. - The decrease in operating costs was mainly due to reduced interest expenses and a decrease in special bonuses to officers [3]. Shareholders' Equity - As of December 31, 2024, total shareholders' equity was approximately $43,265,000, compared to approximately $42,933,000 as of December 31, 2023 [4]. Market Environment - The CEO noted that 2024 was a challenging year for real estate lenders due to high-interest rates affecting borrowers' liquidity and profitability [5]. - The company’s underwriting and operational policies were tested during this period, and the management expressed hope for a smoother 2025 [5]. Company Overview - Manhattan Bridge Capital, Inc. specializes in providing short-term secured loans to real estate investors for property acquisition and improvement in the New York metropolitan area and Florida [6].