Manhattan Bridge Capital(LOAN) - 2025 Q1 - Quarterly Report

Part I: Financial Information Condensed Consolidated Financial Statements (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 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 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 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] - In Q1 2024, the company repurchased 2,000 shares of treasury stock for $9,800[22] Consolidated Statements of Cash Flows 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 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] - 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] - 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][44] - The company's subsidiary has $6,000,000 in 6% senior secured notes due April 22, 2026[45] Management's Discussion and Analysis of Financial Condition and Results of Operations 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] - 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] Results of Operations 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 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] - 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][80] - 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][87] Quantitative and Qualitative Disclosures about Market Risk 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] Controls and Procedures 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] - No material changes to the company's internal control over financial reporting occurred during the fiscal quarter ended March 31, 2025[91] Part II: Other Information Exhibits 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] - Inline XBRL data files are included as exhibits, enhancing the accessibility and analysis of the financial data[94]