Loan Origination and Portfolio - The company has originated loans ranging from $40,000 to a maximum of $3.6 million, with a lending policy limiting the maximum loan amount to the lower of 9.9% of the aggregate loan portfolio or $4 million[19]. - The typical interest rate for loans in the portfolio is fixed at 9% to 13% per year, with a maximum initial term of 12 months[19][35]. - The company focuses on selectively originating loans secured by first mortgages on residential and commercial real estate in the New York metropolitan area, New Jersey, Connecticut, and Florida[22]. - The company has a disciplined lending approach, utilizing rigorous underwriting and loan closing procedures to evaluate risks and merits of transactions[29]. - The company believes current market dynamics present opportunities for selectively originating high-quality first mortgage loans due to a demand/supply imbalance[22][23]. - Loans originated decreased from $56,301,000 in 2023 to $41,966,000 in 2024, a decline of approximately 25.5%[45]. - Loans repaid also decreased from $57,736,000 in 2023 to $49,090,000 in 2024, representing a decrease of about 15%[45]. - The principal amount of loans earning interest fell from $73,048,000 in 2023 to $65,974,000 in 2024, a reduction of approximately 9.1%[45]. - The number of loans outstanding decreased from 120 in 2023 to 95 in 2024, a decline of about 20.8%[45]. - The percentage of loans secured by properties in the New York metropolitan area decreased from 97.5% in 2023 to 95.8% in 2024[45]. - The company has made loans to four different entities totaling $7.2 million, representing 11.0% of its loan portfolio, indicating borrower concentration risk[125]. Financial Position and Debt - As of December 31, 2024, the company's unfunded commitment was approximately $7.2 million, down from $7.98 million in 2023[31]. - The company has a $32.5 million credit line agreement with Webster Business Credit Corporation, Flushing Bank, and Mizrahi Tefahot Bank Ltd.[28]. - The company has a credit line of up to $32.5 million, with $16,427,874 outstanding as of December 31, 2024[52]. - The total debt as of December 31, 2024, was $22,331,000, with total sources of capital amounting to $67,929,000[53]. - The existing credit line of $32.5 million with Webster, Flushing, and Mizrahi expires on February 28, 2026, and contains various covenants that could impact the company's growth and REIT qualification[127]. - If the company fails to comply with the covenants of the credit line, it may face immediate repayment obligations, potentially requiring asset sales[129]. - The company has no formal policy limiting the amount of debt incurred, which could increase financial risk and reduce cash available for shareholder distributions[131]. - The company may incur substantial additional indebtedness in the future, which could exacerbate the risks associated with its leverage[96]. REIT Status and Distributions - The company aims to distribute at least 90% of its REIT taxable income to shareholders to maintain its REIT status[18]. - The company must maintain at least 75% of its assets in qualified REIT real estate assets to avoid adverse tax consequences, which could limit operational flexibility[136]. - The company is required to distribute at least 90% of its REIT taxable income to maintain its REIT status, with 100% of total distributions for the tax year 2024 characterized as non-qualified dividends[208]. - If the company distributes less than 100% of its taxable income, it will incur a 4% nondeductible excise tax on the undistributed amount[140]. - The company may face difficulties in generating sufficient cash flow to meet REIT distribution requirements, potentially requiring asset sales or borrowing on unfavorable terms[144]. Market and Competitive Environment - The company operates in a highly competitive market, facing competition from various financial institutions, which may limit its ability to originate loans with favorable interest rates[85]. - The company has expanded its operations into New Jersey, Connecticut, and Florida markets, facing competition from established lenders[56]. - The company’s access to financing may be limited, affecting its ability to maximize returns and manage its loan portfolio effectively[187]. Risk Factors - The company’s profitability is significantly dependent on the management's ability to generate attractive risk-adjusted loans consistently[87]. - The company may change its investment and financing strategies without shareholder consent, which could adversely affect the market value of its common shares[86]. - The company faces risks related to borrower defaults and the potential for losses if collateral values decline[117]. - A prolonged economic slowdown or recession could impair asset performance and increase funding costs, negatively affecting financial condition and operations[112]. - The geographic concentration of the loan portfolio in the New York metropolitan area increases vulnerability to local economic downturns, potentially leading to higher default rates[110]. - The lack of liquidity in the loan portfolio may hinder the ability to sell assets quickly, potentially realizing less than the outstanding loan balance[109]. - Rising prepayment rates on loans could adversely impact revenue and operating results, particularly in declining interest rate environments[108]. - Environmental liabilities could adversely affect the value of properties acquired or underlying investments, impacting financial condition and shareholder distributions[121]. Cybersecurity and Operational Risks - The company experienced a cybersecurity incident in June 2022, although it did not suffer financial loss, it raised concerns about potential future risks[97]. - The company is continuously investing in advanced cybersecurity measures to mitigate risks, although no material impact from cybersecurity incidents has been reported to date[98]. - The company engages third-party service providers for cybersecurity evaluations and audits to address new challenges[200]. - The company’s cybersecurity efforts are integrated into its overall enterprise risk management strategy, focusing on identifying and mitigating threats[198]. Management and Shareholder Dynamics - As of December 31, 2024, the CEO, Assaf Ran, owns 22.8% of the outstanding common shares, which may lead to significant control over corporate actions[163]. - Shareholders' interests may not always align with those of Noteholders, as shareholders may prioritize long-term performance over short-term cash flow[173]. - The company has significant control over MBC Funding II, which may lead to conflicts of interest regarding the best interests of Noteholders[177]. Miscellaneous - The current monthly rent for the company's executive office is $5,330, with the lease expiring on November 30, 2027[202]. - The common shares traded on The Nasdaq Capital Market experienced volatility, with a price range of $4.27 to $5.91 in 2023 and $4.60 to $5.90 in 2024[193]. - The company is authorized to issue up to 25,000,000 common shares and 5,000,000 preferred shares, with 11,757,058 common shares issued and 11,438,651 common shares outstanding as of March 4, 2025[167].

Company Overview - Ashford Hospitality Trust, Inc. is a real estate investment trust (REIT) focused on investing predominantly in upper upscale, full-service hotels [2] Loan Extension Details - The company has successfully extended its mortgage loan secured by the 141-room Hotel Indigo Atlanta Midtown in Atlanta, Georgia [1] - The original loan had a final maturity date in December 2024, which has now been extended to an initial maturity in February 2026, with a one-year extension option available, leading to a final maturity date in February 2027 [1] - The current balance of the loan is $12.3 million, with an interest rate set at a floating rate of SOFR + 2.85% [1]

Core Insights - Ashford Hospitality Trust, Inc. has successfully closed a $580 million refinancing secured by 16 hotels, which includes hotels from previous loan pools and the Westin Princeton [1][2] - The previous loans had a combined outstanding balance of approximately $438.7 million, and the new financing is non-recourse with a two-year term and three one-year extension options [1] - The interest rate on the new financing is set at SOFR + 4.37%, and approximately $72 million of the excess proceeds were used to pay off the remaining balance on strategic financing [1][2] Financial Impact - The refinancing generated enough excess proceeds to fully pay off the strategic financing and set aside significant reserves for future capital expenditures [2] - The refinancing has addressed several pending loan maturities and eliminated all corporate-level debt for the company [2] Company Overview - Ashford Hospitality Trust is a real estate investment trust (REIT) that primarily invests in upper upscale, full-service hotels [2]

Company Overview - Braemar Hotels & Resorts Inc. is a real estate investment trust (REIT) focused on investing in luxury hotels and resorts [2]. Loan Extension - The company successfully extended its mortgage loan secured by the 170-room Ritz-Carlton Lake Tahoe, with the initial maturity date in January 2025 now extended to January 2026 [1]. - The loan was extended with a paydown of $10 million, and the spread on the loan is now SOFR + 3.25% [1]. Financial Discussions - Braemar is in active discussions with lenders regarding a $293.2 million loan that has a maturity date in June 2025 [2]. - The hotel lending market is showing signs of improvement, leading to optimism about better financing conditions in the future [2].

Company Overview - Ashford Hospitality Trust, Inc. has entered into a 90-day forbearance period for its Morgan Stanley Pool loan secured by 17 hotels, which had a final maturity date of November 9, 2024 [1] - The company is in discussions with the lender for a multi-year extension of the loan, expected to be finalized during the forbearance period [1] Financial Position - The balance of the company's strategic financing has been reduced to approximately $48.6 million, triggering an exit fee reduction [2] - The company is actively working on extensions and refinancings for several of its loans to maximize asset value for shareholders [2] Market Environment - The company acknowledges the challenging environment it operates in but is focused on achieving favorable outcomes with its financing efforts [2]

Core Viewpoint - Ashford Hospitality Trust has successfully refinanced its mortgage loan for the Marriott Crystal Gateway Hotel, generating significant proceeds to pay down strategic financing [1][4]. Financing Details - The new non-recourse loan amounts to $121.5 million with a three-year initial term and two one-year extension options, subject to certain conditions [2]. - The loan features an interest-only structure with a floating interest rate of SOFR + 4.86% [2]. - The refinancing has resulted in approximately $31 million of excess proceeds, which will be utilized to reduce the Company's strategic financing [2]. Strategic Financing Update - The Company has reduced the exit fee on its strategic financing from 15.0% to 12.5% of the original loan balance until December 15, 2024, contingent upon reducing the outstanding loan balance to $50 million or less by November 15, 2024 [3]. - The $31 million pay down, along with an additional payment planned for the following week, will lower the loan balance below $50 million, thus triggering the reduced exit fee [3]. Management Commentary - The President and CEO of Ashford Trust expressed satisfaction with the refinancing outcome and emphasized the progress made towards paying off strategic financing by the end of the year [4].

Core Viewpoint - Luca Mining Corp. has recommenced principal repayments on its term loans with Trafigura, marking a significant milestone in its financial strategy and aiming to eliminate term debt by 2026, indicating a stronger financial outlook and disciplined cash management [1][3][4]. Financial Overview - The total outstanding loans with Trafigura amount to US$18.1 million, which includes a non-interest-bearing convertible loan of US$5.8 million due in January 2027 and US$12.3 million in term debt scheduled for repayment by mid-2026 [2]. - Principal repayments began in October 2024, supported by improved cash flow from ongoing mining operations, reflecting the company's commitment to financial performance and operational efficiency [3][4]. Strategic Developments - The recommencement of repayments is seen as a pivotal moment for the company, enhancing financial stability and allowing for a focus on future growth opportunities while reducing debt [4]. - A restructuring transaction completed in January 2024 converted US$5.8 million of the term loan into a non-interest-bearing convertible debenture, providing more options for improving the balance sheet [5]. Operational Updates - Luca Mining operates two 100%-owned producing mines in Mexico, focusing on gold, copper, zinc, silver, and lead, with significant development potential [7]. - The Campo Morado mine is currently undergoing an optimization program that is yielding improvements in recovery rates, grades, efficiencies, and cash flows [8]. - The Tahuehueto Gold and Silver Mine is in the commissioning phase, with commercial production expected by year-end [9].

Core Viewpoint - Manhattan Bridge Capital, Inc. reported a decrease in net income for the three months ended September 30, 2024, primarily due to a reduction in revenue from loans and origination fees, despite a decrease in interest expense [1][2]. Financial Performance - For the three months ended September 30, 2024, net income was approximately $1,399,000, or $0.12 per share, compared to $1,446,000, or $0.13 per share for the same period in 2023, reflecting a decrease of $47,000, or 3.3% [1]. - Total revenues for the same period were approximately $2,313,000, down from $2,434,000 in 2023, a decrease of $121,000 or 5.0% [2]. - For the nine months ended September 30, 2024, net income increased to approximately $4,285,000, or $0.37 per share, compared to $4,128,000, or $0.36 per share in 2023, an increase of $157,000, or 3.8% [3]. - Total revenues for the nine months ended September 30, 2024, were approximately $7,330,000, an increase of $99,000, or 1.4% from $7,231,000 in 2023 [4]. Revenue Breakdown - For the three months ended September 30, 2024, interest income from loans was approximately $1,953,000, while origination fees were approximately $360,000 [2]. - For the nine months ended September 30, 2024, interest income from loans was approximately $6,128,000, and origination fees were approximately $1,201,000 [4]. Balance Sheet Highlights - As of September 30, 2024, total stockholders' equity was approximately $43,271,000 [5]. - Total assets were approximately $70,702,003, down from $76,434,886 as of December 31, 2023 [7][8]. - Total liabilities decreased to $27,431,084 from $33,502,180 [8]. Market Context - The CEO noted that a recent 0.5% reduction in interest rates has generated optimism among real estate investors, although the high-interest environment had previously slowed down new loan originations [5].

Part I [Financial Information](index=4&type=section&id=Part%20I%20FINANCIAL%20INFORMATION) This section presents the company's comprehensive financial data, including statements of financial position, operations, equity changes, and cash flows, along with explanatory notes [Condensed Consolidated Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20%28unaudited%29) This section presents the company's unaudited condensed consolidated financial statements, including balance sheets, statements of operations, changes in stockholders' equity, and cash flows, along with related notes, detailing financial position as of September 30, 2024, and December 31, 2023, and operating results and cash flows for the three and nine months ended September 30, 2024, and 2023 [Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023](index=5&type=section&id=Consolidated%20Balance%20Sheets%20as%20of%20September%2030%2C%202024%20and%20December%2031%2C%202023%20%28audited%29) This section presents the company's consolidated balance sheets, detailing assets, liabilities, and stockholders' equity as of September 30, 2024, and December 31, 2023 | Metric | September 30, 2024 (Unaudited, USD) | December 31, 2023 (Audited, USD) | | :------------------------------------ | :----------------------- | :---------------------- | | **Assets** | | | | Loans Receivable | $68,711,438 | $73,048,403 | | Cash | $167,863 | $104,222 | | Restricted Cash | — | $1,587,773 | | Total Assets | $70,702,003 | $76,434,886 | | **Liabilities** | | | | Line of Credit | $19,170,268 | $25,152,338 | | Senior Secured Notes (Net) | $5,884,244 | $5,827,931 | | Dividends Payable | $1,315,445 | $1,287,073 | | Total Liabilities | $27,431,084 | $33,502,180 | | **Stockholders' Equity** | | | | Common Stock | $11,757 | $11,757 | | Additional Paid-in Capital | $45,558,674 | $45,548,876 | | Accumulated Deficit | $(1,229,106) | $(1,567,321) | | Total Stockholders' Equity | $43,270,919 | $42,932,706 | | Total Liabilities and Stockholders' Equity | $70,702,003 | $76,434,886 | - As of September 30, 2024, the company's **total assets were $70,702,003**, a decrease from **$76,434,886** as of December 31, 2023, primarily due to reductions in loans receivable and line of credit balances[5](index=5&type=chunk) [Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2024 and 2023](index=6&type=section&id=Consolidated%20Statements%20of%20Operations%20for%20the%20Three%20and%20Nine%20Months%20Ended%20September%2030%2C%202024%20and%202023) This section details the company's consolidated operating results, including revenue, operating costs, and net income for the three and nine months ended September 30, 2024, and 2023 | Metric | Three Months Ended September 30, 2024 (USD) | Three Months Ended September 30, 2023 (USD) | Nine Months Ended September 30, 2024 (USD) | Nine Months Ended September 30, 2023 (USD) | | :------------------------------------ | :----------------------- | :----------------------- | :----------------------- | :----------------------- | | **Revenue** | | | | | | Loan Interest Income | $1,952,957 | $1,992,495 | $6,128,131 | $5,888,843 | | Loan Origination Fees | $360,376 | $441,271 | $1,201,494 | $1,342,077 | | **Total Revenue** | **$2,313,333** | **$2,433,766** | **$7,329,625** | **$7,230,920** | | **Operating Costs and Expenses** | | | | | | Interest and Amortization of Deferred Financing Costs | $537,218 | $614,389 | $1,831,037 | $1,856,079 | | General and Administrative Expenses | $380,482 | $377,192 | $1,225,041 | $1,274,267 | | **Total Operating Costs and Expenses** | **$918,547** | **$991,942** | **$3,057,925** | **$3,131,998** | | **Operating Income** | **$1,394,786** | **$1,441,824** | **$4,271,700** | **$4,098,922** | | **Net Income** | **$1,399,286** | **$1,446,324** | **$4,284,550** | **$4,127,652** | | **Basic and Diluted Net Income Per Share** | **$0.12** | **$0.13** | **$0.37** | **$0.36** | - For the three months ended September 30, 2024, **total revenue decreased by 5.0% to $2,313,333** year-over-year, with **net income decreasing by 3.3% to $1,399,286**; for the nine months ended September 30, 2024, **total revenue increased by 1.4% to $7,329,625** year-over-year, and **net income increased by 3.8% to $4,284,550**[6](index=6&type=chunk)[7](index=7&type=chunk) [Consolidated Statements of Changes in Stockholders' Equity for the Three and Nine Months Ended September 30, 2024 and 2023](index=7&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders%27%20Equity%20for%20the%20Three%20and%20Nine%20Months%20Ended%20September%2030%2C%202024%20and%202023) This section outlines the changes in the company's consolidated stockholders' equity, reflecting the impact of net income, dividends, and stock transactions for the three and nine months ended September 30, 2024, and 2023 | Metric | Nine Months Ended September 30, 2024 (USD) | | :------------------------------------ | :----------------------- | | Balance as of January 1, 2024 | $42,932,706 | | Repurchase of Treasury Stock | $(9,800) | | Non-Cash Compensation | $9,798 | | Dividends Paid | $(2,630,890) | | Dividends Declared and Payable | $(1,315,445) | | Net Income | $4,284,550 | | Balance as of September 30, 2024 | $43,270,919 | - As of September 30, 2024, **total stockholders' equity increased to $43,270,919** from **$42,932,706** as of January 1, 2024, primarily driven by net income contributions, partially offset by dividend payments and treasury stock repurchases[10](index=10&type=chunk) [Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2024 and 2023](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows%20for%20the%20Nine%20Months%20Ended%20September%2030%2C%202024%20and%202023) This section presents the company's consolidated cash flow activities, categorizing cash generated from or used in operating, investing, and financing activities for the nine months ended September 30, 2024, and 2023 | Cash Flow Activity | Nine Months Ended September 30, 2024 (USD) | Nine Months Ended September 30, 2023 (USD) | | :------------------------------------ | :----------------------- | :----------------------- | | Net Cash Provided by Operating Activities | $4,004,921 | $4,136,768 | | Net Cash Provided by Investing Activities | $4,382,947 | $3,697,339 | | Net Cash Used in Financing Activities | $(9,912,000) | $(7,804,500) | | Net (Decrease) Increase in Cash | $(1,524,132) | $29,607 | | Cash at End of Period | $167,863 | $133,147 | - For the nine months ended September 30, 2024, **net cash provided by operating activities was $4,004,921**, **net cash provided by investing activities was $4,382,947**, and **net cash used in financing activities was $9,912,000**, resulting in a **net cash decrease of $1,524,132**[13](index=13&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanatory notes to the condensed consolidated financial statements, offering additional context and disclosures for various accounts and transactions [1. Company Description](index=8&type=section&id=1.%20THE%20DESCRIPTION%20OF%20COMPANY) This note describes Manhattan Bridge Capital, Inc. and its subsidiary, outlining their business of providing short-term, secured non-bank loans to real estate investors - Manhattan Bridge Capital, Inc. (MBC) and its subsidiary MBC Funding II Corp. (collectively, the "Company") provide short-term, secured non-bank loans primarily to real estate investors in the New York metropolitan area (including New Jersey and Connecticut) and Florida, for the acquisition, renovation, conversion, or development of residential or commercial properties[14](index=14&type=chunk)[15](index=15&type=chunk) - The Company's financial statements are prepared in accordance with U.S. GAAP and consolidate the accounts of MBC and its subsidiaries, with all significant intercompany balances and transactions eliminated[14](index=14&type=chunk)[15](index=15&type=chunk) [2. Recently Issued Accounting Pronouncements](index=9&type=section&id=2.%20RECENTLY%20ISSUED%20TECHNICAL%20ACCOUNTING%20PRONOUNCEMENTS) This note addresses the impact of recently issued accounting standards on the company's condensed consolidated financial statements - Management believes that any recently issued accounting pronouncements not yet effective would not have a material impact on the Company's condensed consolidated financial statements if adopted currently[16](index=16&type=chunk) [3. Restricted Cash](index=9&type=section&id=3.%20CASH%20%E2%80%93%20RESTRICTED) This note explains the nature and purpose of the company's restricted cash balance - Restricted cash primarily represents commercial loan collections received and awaiting clearance, mainly designated for reducing the Webster Line of Credit[17](index=17&type=chunk) [4. Commercial Loans](index=9&type=section&id=4.%20COMMERCIAL%20LOANS) This note details the company's commercial loan portfolio, including loan types, terms, and collateral - The Company provides short-term, secured non-bank loans to real estate investors for property acquisition and construction, primarily in the New York metropolitan area and Florida, with typical one-year terms secured by real estate mortgages and personal guarantees from borrowers' principals[18](index=18&type=chunk) | Loan Type | September 30, 2024 (USD) | December 31, 2023 (Audited, USD) | | :------------------- | :------------- | :---------------------- | | Developer Residential Loans | $59,886,438 | $64,729,403 | | Developer Commercial Loans | $7,380,000 | $7,300,000 | | Developer Mixed-Use Loans | $1,445,000 | $1,019,000 | | **Total Loans Outstanding** | **$68,711,438** | **$73,048,403** | - As of September 30, 2024, the Company had committed to provide **$8,147,338** in construction loans, available for borrower drawdowns upon meeting specific conditions, with no current loan impairments or provisions for loan losses or recoveries[19](index=19&type=chunk)[21](index=21&type=chunk) [5. Line of Credit](index=10&type=section&id=5.%20LINE%20OF%20CREDIT) This note describes the company's credit facilities, including terms, interest rates, and covenants - The Company maintains a revised and restated credit and security agreement (the "Webster Line of Credit") with banks like Webster Business Credit Corporation, providing a **$32.5 million** credit facility valid until February 28, 2026, secured by mortgage loans and other collateral[23](index=23&type=chunk) - The Webster Line of Credit bears interest at SOFR plus a premium, approximately **8.4%** (including a 0.5% agency fee) as of September 30, 2024, with the Company in compliance with all covenants and **$19,170,268** outstanding[23](index=23&type=chunk)[26](index=26&type=chunk) - The line of credit includes various covenants and restrictions, such as limits on borrowing amounts, maintenance of financial ratios, restrictions on loan terms, and limitations on dividend payments and stock repurchases[25](index=25&type=chunk) [6. Senior Secured Notes](index=11&type=section&id=6.%20SENIOR%20SECURED%20NOTES) This note provides details on the company's senior secured notes, including issuance, maturity, and collateral requirements - MBC Funding II issued **6% Senior Secured Notes** ("Notes") with a total principal of **$6 million** on April 25, 2016, maturing on April 22, 2026, and listed on NYSE American under the ticker "LOAN/26"[27](index=27&type=chunk) - Per covenant terms, the aggregate outstanding principal balance of mortgage loans held by MBC Funding II plus its cash on hand must always be at least **120%** of the aggregate outstanding principal balance of the Notes[28](index=28&type=chunk) - The Company guarantees MBC Funding II's obligations under the Notes and pledges its 100% issued and outstanding common stock of MBC Funding II as collateral[30](index=30&type=chunk) [7. Stockholders' Equity](index=12&type=section&id=7.%20STOCKHOLDERS%27%20EQUITY) This note describes activities related to stockholders' equity, including stock repurchase programs - The Company adopted a stock repurchase program on April 11, 2023, authorizing the repurchase of up to **100,000 shares** of common stock, with **56,294 shares** repurchased at a total cost of **$271,468** before the program's expiration on April 10, 2024[31](index=31&type=chunk) [8. Earnings Per Common Share](index=12&type=section&id=8.%20EARNINGS%20PER%20COMMON%20SHARE) This note explains the calculation methodology for basic and diluted earnings per common share - Basic and diluted earnings per share are calculated according to ASC Topic 260, with basic EPS determined by dividing net income attributable to common stockholders by the weighted-average number of common shares outstanding[32](index=32&type=chunk) [9. Stock-Based Compensation](index=12&type=section&id=9.%20STOCK%E2%80%93BASED%20COMPENSATION) This note details the company's stock-based compensation expenses and outstanding restricted stock awards - Stock-based compensation expense was **$3,266** for the three months ended September 30, 2024, and 2023, and **$9,798** for the nine months ended September 30, 2024, and 2023, representing the fair value amortization of **1,000,000 restricted shares** granted to the CEO[33](index=33&type=chunk) - As of September 30, 2024, all **1,000,000 shares** remain restricted, with **$25,040** in unrecognized stock-based compensation expense, and these restricted shares will vest one-third on September 9, 2026, 2027, and 2028, respectively[33](index=33&type=chunk) [10. Commitments](index=12&type=section&id=10.%20COMMITMENT) This note outlines the company's significant financial commitments, specifically regarding dividend payments - A cash dividend of **$0.115 per share**, totaling **$1,315,445**, declared by the Board on July 29, 2024, was paid on October 15, 2024, to all shareholders of record as of October 8, 2024[34](index=34&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=12&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section discusses the company's financial condition and operating results for the three and nine months ended September 30, 2024, covering business overview, revenue and expense changes, net income performance, and liquidity and capital resources [Business Overview](index=13&type=section&id=Business%20Overview) This section provides an overview of the company's business model, lending activities, strategic objectives, and REIT election status - The Company is a New York-based real estate finance firm specializing in providing short-term, secured non-bank loans ("hard money loans") to real estate investors in the New York metropolitan area (including New Jersey and Connecticut) and Florida, for the acquisition, renovation, conversion, or development of residential or commercial properties[35](index=35&type=chunk) - Loans are typically secured by a first mortgage on real estate and personal guarantees from the borrower's principals, with terms usually 12 months, fixed interest rates from **9% to 13.5%**, and loan origination fees ranging from **0% to 2%**[36](index=36&type=chunk) - The Company's primary business objective is to provide attractive risk-adjusted returns to shareholders through dividends, achieved by selectively originating first mortgage loans and prudently managing its investment portfolio[38](index=38&type=chunk) - Since 2014, the Company has elected to be taxed as a Real Estate Investment Trust (REIT), requiring it to distribute at least **90%** of its REIT taxable income annually to maintain REIT qualification[41](index=41&type=chunk) [Results of Operations - Three Months Ended September 30, 2024 vs 2023](index=14&type=section&id=Results%20of%20Operations%20-%20Three%20Months%20Ended%20September%2030%2C%202024%20vs%202023) This section analyzes the company's operating performance, comparing key financial metrics for the three months ended September 30, 2024, against the same period in 2023 | Metric | Three Months Ended September 30, 2024 (USD) | Three Months Ended September 30, 2023 (USD) | Change (USD) | Change (%) | | :------------------------------------ | :----------------------- | :----------------------- | :------- | :------- | | Total Revenue | $2,313,000 | $2,434,000 | $(121,000) | -5.0% | | Loan Interest Income | $1,953,000 | $1,992,000 | $(39,000) | -2.0% | | Loan Origination Fees | $360,000 | $441,000 | $(81,000) | -18.4% | | Interest and Amortization of Deferred Financing Costs | $537,000 | $614,000 | $(77,000) | -12.5% | | General and Administrative Expenses | $380,000 | $377,000 | $3,000 | 0.8% | | Net Income | $1,399,000 | $1,446,000 | $(47,000) | -3.3% | - The **total revenue decrease** was primarily due to reduced loans receivable and slower new loan originations leading to lower origination fees, partially offset by higher commercial loan interest rates[41](index=41&type=chunk)[42](index=42&type=chunk) - The reduction in **interest and amortization of deferred financing costs** was mainly attributable to a decrease in the Webster Line of Credit borrowing amount[41](index=41&type=chunk)[42](index=42&type=chunk) [Results of Operations - Nine Months Ended September 30, 2024 vs 2023](index=15&type=section&id=Results%20of%20Operations%20-%20Nine%20Months%20Ended%20September%2030%2C%202024%20vs%202023) This section analyzes the company's operating performance, comparing key financial metrics for the nine months ended September 30, 2024, against the same period in 2023 | Metric | Nine Months Ended September 30, 2024 (USD) | Nine Months Ended September 30, 2023 (USD) | Change (USD) | Change (%) | | :------------------------------------ | :----------------------- | :----------------------- | :------- | :------- | | Total Revenue | $7,330,000 | $7,231,000 | $99,000 | 1.4% | | Loan Interest Income | $6,128,000 | $5,889,000 | $239,000 | 4.1% | | Loan Origination Fees | $1,201,000 | $1,342,000 | $(141,000) | -10.5% | | Interest and Amortization of Deferred Financing Costs | $1,831,000 | $1,856,000 | $(25,000) | -1.3% | | General and Administrative Expenses | $1,225,000 | $1,274,000 | $(49,000) | -3.8% | | Net Income | $4,285,000 | $4,128,000 | $157,000 | 3.8% | - The **total revenue growth** was primarily driven by higher commercial loan interest rates, partially offset by reduced loans receivable and slower new loan originations leading to lower origination fees[44](index=44&type=chunk)[45](index=45&type=chunk) - The decrease in **general and administrative expenses** was mainly due to reduced special bonuses for executives in 2023 and lower marketing expenses, partially offset by increased salaries and costs related to the 2024 S-3 registration statement[44](index=44&type=chunk)[45](index=45&type=chunk) [Liquidity and Capital Resources](index=16&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's liquidity position, cash flow activities, and capital resources, including its ability to meet future operational needs | Metric | As of September 30, 2024 (USD) | As of December 31, 2023 (USD) | | :------------------- | :---------------- | :------------------ | | Cash | $168,000 | $104,000 | | Net Cash Provided by Operating Activities (Nine Months) | $4,005,000 | $4,137,000 | | Net Cash Provided by Investing Activities (Nine Months) | $4,383,000 | $3,697,000 | | Net Cash Used in Financing Activities (Nine Months) | $9,912,000 | $7,805,000 | | Webster Line of Credit Outstanding | $19,170,268 | N/A | | Senior Secured Notes Outstanding Principal | $6,000,000 | N/A | - As of September 30, 2024, the company's **cash balance was $168,000**[47](index=47&type=chunk) - **Net cash provided by operating activities decreased**, primarily due to increased interest and other fees receivable on loans and reduced deferred origination fees[47](index=47&type=chunk)[48](index=48&type=chunk) - **Net cash provided by investing activities increased**, mainly from the collection of commercial loans[47](index=47&type=chunk)[49](index=49&type=chunk) - **Net cash used in financing activities increased**, primarily reflecting partial repayment of the Webster Line of Credit and dividend payments[47](index=47&type=chunk)[49](index=49&type=chunk) - The Company anticipates that its current cash balance, the Webster Line of Credit, and operating cash flows will be sufficient to meet working capital needs for the next 12 months, with expected increases in working capital requirements as the business grows[56](index=56&type=chunk) [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 providing the information required by this item - As a smaller reporting company, the Company is exempt from providing quantitative and qualitative disclosures about market risk as per regulations[58](index=58&type=chunk) [Controls and Procedures](index=18&type=section&id=Item%204.%20Controls%20and%20Procedures) Management assessed the effectiveness of the company's disclosure controls and procedures as of September 30, 2024, concluding they are effective, with no significant changes in internal control over financial reporting during the quarter - As of September 30, 2024, the Company's management, including the Chief Executive Officer and Chief Financial Officer, assessed and determined that its disclosure controls and procedures are effective[59](index=59&type=chunk) - There were no significant changes in the Company's internal control over financial reporting during the fiscal quarter ended September 30, 2024[60](index=60&type=chunk) Part II [Other Information](index=18&type=section&id=Part%20II%20OTHER%20INFORMATION) This section contains additional information not covered in the financial statements, including a list of exhibits filed with the report [Exhibits](index=18&type=section&id=Item%206.%20Exhibits) This section lists the exhibits accompanying this 10-Q report, including certifications from the CEO and CFO and XBRL-related documents - Exhibits include certifications from the Chief Executive Officer and Chief Financial Officer pursuant to Rule 13a-14 and 18 U.S.C. section 1350, as well as Inline XBRL instance documents and taxonomy extension files[61](index=61&type=chunk) [Signatures](index=19&type=section&id=SIGNATURES) This section contains the official signatures of the company's authorized officers, affirming the submission of the report - This report was duly signed by Assaf Ran, President and Chief Executive Officer, and Vanessa Kao, Chief Financial Officer, of Manhattan Bridge Capital, Inc. on October 23, 2024[63](index=63&type=chunk)[64](index=64&type=chunk)

Group 1 - Manhattan Bridge Capital, Inc. has declared a quarterly dividend of $0.115 per share [1] - The dividend is set to be paid to all shareholders of record on October 8, 2024 [1] - Payment of the dividend will occur on October 15, 2024 [1]