GREAT NECK, N.Y., April 24, 2025 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (Nasdaq: LOAN) (the "Company") announced today that its net income for the three months ended March 31, 2025 was approximately $1,373,000, or $0.12 per share (based on approximately 11.4 million weighted-average outstanding common shares), compared to approximately $1,476,000, or $0.13 per share (based on approximately 11.4 million weighted-average outstanding common shares) for the three months ended March 31, 2024, a decrease of $103,000, or 7.0%. This decrease is primarily attributable to a decrease in interest income from loans, partially offset by a decrease in interest expense.
Total revenues for the three months ended March 31, 2025 were approximately $2,274,000 compared to approximately $2,573,000 for the three months ended March 31, 2024, a decrease of $299,000, or 11.6%. The decrease in revenue was primarily attributable to lower interest income, resulting from a reduction in loans receivable, period over period. For the three months ended March 31, 2025, approximately $1,834,000 of the Company's revenue represents interest income on secured commercial loans that the Company offers to real estate investors, compared to approximately $2,142,000 for the same period in 2024, and approximately $440,000 and $431,000, respectively, represent origination fees on such loans. The loans are principally secured by collateral consisting of real estate and accompanied by personal guarantees from the principals of the borrowers.
As of March 31, 2025, total shareholders' equity was approximately $43,326,000.
Assaf Ran, Chairman of the Board and Chief Executive Officer of the Company, stated, "The first quarter of 2025 began with an optimistic consensus among the real estate investor community. However, due to the delays in the reduction of interest rates and global economic uncertainty, we now sense some concerns about the likelihood of an immediate recovery of the real estate market. Again, thanks to our low leverage, strict underwriting, and strong relationships with our borrowers, we believe that we remain well-positioned to navigate these challenges."
About Manhattan Bridge Capital, Inc.
Manhattan Bridge Capital, Inc. offers short-term secured, non-banking loans (sometimes referred to as "hard money'' loans) to real estate investors to fund their acquisition, renovation, rehabilitation or improvement of properties located in the New York metropolitan area, including New Jersey and Connecticut, and in Florida. We operate the website: https://www.manhattanbridgecapital.com.
Forward Looking Statements
This press release and the statements of the Company's representatives related thereto contain or may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the generality of the foregoing, words such as "plan," "project," "potential," "seek," "may," "will," "expect," "believe," "anticipate," "intend," "could," "estimate," or "continue" are intended to identify forward-looking statements. For example, when the Company discusses its belief that it remains well-positioned to navigate market challenges, it is using forward looking statements. Readers are cautioned that certain important factors may affect the Company's actual results and could cause such results to differ materially from any forward-looking statements that may be made in this news release. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties. Actual results may differ materially from those projected, expressed or implied in the forward-looking statements as a result of various factors, including but not limited to the following: (i) our loan origination activities, revenues and profits are limited by available funds; (ii) we operate in a highly competitive market and competition may limit our ability to originate loans with favorable interest rates; (iii) our Chief Executive Officer is critical to our business and our future success may depend on our ability to retain him; (iv) if we overestimate the yields on our loans or incorrectly value the collateral securing the loan, we may experience losses; (v) we may be subject to "lender liability" claims; (vi) our due diligence may not uncover all of a borrower's liabilities or other risks to its business; (vii) borrower concentration could lead to significant losses; (viii) we may choose to make distributions in our own stock, in which case you may be required to pay income taxes in excess of the cash dividends you receive; (ix) an increase in interest rates may impact our profitability; (x) we may be unsuccessful in our efforts to extend or replace our existing credit line; and (xi) we may be unsuccessful in our efforts to refinance our 6% senior secured notes, due April 22, 2026. The risk factors contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 filed with the Securities and Exchange Commission identify important factors that could cause such differences. These forward-looking statements speak only as of the date of this press release, and we caution potential investors not to place undue reliance on such statements. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
| MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS | |||||
Assets | March 31, 2025 (unaudited) | December 31, 2024 (audited) | |||
| Loans receivable, net of deferred origination and other fees | $ | 63,672,278 | $ | 65,405,731 | |
| Interest and other fees receivable on loans | 1,618,826 | 1,521,033 | |||
| Cash | 201,363 | 178,012 | |||
| Cash - restricted | 21,769 | 23,750 | |||
| Other assets | 119,642 | 62,080 | |||
| Right-of-use asset - operating lease, net | 140,836 | 154,039 | |||
| Deferred financing costs, net | 12,706 | 16,171 | |||
| Total assets | $ | 65,787,420 | $ | 67,360,816 | |
| Liabilities and Stockholders' Equity | |||||
| Liabilities: | |||||
| Line of credit | $ | 14,825,735 | $ | 16,427,874 | |
| Senior secured notes (net of deferred financing costs of $78,214 and $96,985, respectively) | 5,921,786 | 5,903,015 | |||
| Accounts payable and accrued expenses | 194,801 | 232,236 | |||
| Operating lease liability | 153,571 | 167,119 | |||
| Loan holdback | 50,000 | 50,000 | |||
| Dividends payable | 1,315,445 | 1,315,445 | |||
| Total liabilities | 22,461,338 | 24,095,689 | |||
Commitments and contingencies | |||||
| Stockholders' equity: | |||||
| Preferred shares - $.01 par value; 5,000,000 shares authorized; none issued and outstanding | --- | --- | |||
| Common shares - $.001 par value; 25,000,000 shares authorized; 11,757,058 issued; 11,438,651 outstanding | 11,757 | 11,757 | |||
| Additional paid-in capital | 45,565,207 | 45,561,941 | |||
| Less: Treasury stock, at cost - 318,407 shares | (1,070,406) | (1,070,406) | |||
| Accumulated deficit | (1,180,476) | (1,238,165) | |||
| Total stockholders' equity | 43,326,082 | 43,265,127 | |||
| Total liabilities and stockholders' equity | $ | 65,787,420 | $ | 67,360,816 | |
| MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) | ||||
| Three Months Ended March 31, | ||||
| 2025 | 2024 | |||
| Revenue: | ||||
| Interest income from loans | $1,833,914 | $2,142,487 | ||
| Origination fees | 439,799 | 430,591 | ||
| Total revenue | 2,273,713 | 2,573,078 | ||
Operating costs and expenses: | ||||
| Interest and amortization of deferred financing costs | 451,365 | 690,589 | ||
| Referral fees | 144 | 500 | ||
| General and administrative expenses | 453,570 | 410,278 | ||
| Total operating costs and expenses | 905,079 | 1,101,367 | ||
| Income from operations | 1,368,634 | 1,471,711 | ||
| Other income | 4,500 | 4,500 | ||
| Net income | $1,373,134 | $1,476,211 | ||
| Basic and diluted net income per common share outstanding: | ||||
| --Basic | $0.12 | $0.13 | ||
| --Diluted | $0.12 | $0.13 | ||
| Weighted average number of common shares outstanding: | ||||
| --Basic | 11,438,651 | 11,438,673 | ||
| --Diluted | 11,438,651 | 11,438,673 | ||
| MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (unaudited) | |||||||||||||||
| FOR THE THREE MONTHS ENDED MARCH 31, 2025 | |||||||||||||||
| Common Shares | Additional Paid-in Capital | Treasury Stock | Accumulated Deficit | Totals | |||||||||||
| Shares | Amount | Shares | Cost | ||||||||||||
| Balance, January 1, 2025 | 11,757,058 | $11,757 | $45,561,941 | 318,407 | $(1,070,406) | $(1,238,165) | $43,265,127 | ||||||||
| Non-cash compensation | 3,266 | 3,266 | |||||||||||||
| Dividends declared and payable | (1,315,445) | (1,315,445) | |||||||||||||
| Net income | . | 1,373,134 | 1,373,134 | ||||||||||||
| Balance, March 31, 2025 | 11,757,058 | $11,757 | $45,565,207 | 318,407 | $(1,070,406) | $(1,180,476) | $43,326,082 | ||||||||
| FOR THE THREE MONTHS ENDED MARCH 31, 2024 | |||||||||||||||
| Common Shares | Additional Paid-in Capital | Treasury Stock | Accumulated Deficit | Totals | |||||||||||
| Shares | Amount | Shares | Cost | ||||||||||||
| Balance, January 1, 2024 | 11,757,058 | $11,757 | $45,548,876 | 316,407 | $(1,060,606) | $(1,567,321) | $42,932,706 | ||||||||
| Non-cash compensation | 3,266 | 3,266 | |||||||||||||
| Purchase of treasury shares | 2,000 | (9,800) | (9,800) | ||||||||||||
| Dividends declared and payable | (1,315,445) | ||||||||||||||
| Net income | . | 1,476,211 | 1,476,211 | ||||||||||||
| Balance, March 31, 2024 | 11,757,058 | $11,757 | $45,552,142 | 318,407 | $(1,070,406) | $(1,406,555) | $43,086,938 | ||||||||
| MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) | ||||
| Three Months Ended March 31, | ||||
| 2025 | 2024 | |||
| Cash flows from operating activities: | ||||
| Net income | $ | 1,373,134 | $ | 1,476,211 |
| Adjustments to reconcile net income to net cash provided by operating activities - | ||||
| Amortization of deferred financing costs | 22,237 | 21,954 | ||
| Adjustment to right-of-use asset - operating lease and liability | (345) | 121 | ||
| Depreciation | 1,390 | 1,055 | ||
| Non-cash compensation expense | 3,266 | 3,266 | ||
| Changes in operating assets and liabilities: | ||||
| Interest and other fees receivable on loans | (110,915) | (231,202) | ||
| Other assets | (58,952) | (35,153) | ||
| Accounts payable and accrued expenses | (37,435) | (31,600) | ||
| Deferred origination and other fees | (11,437) | (63,996) | ||
| Net cash provided by operating activities | 1,180,943 | 1,140,656 | ||
| Cash flows from investing activities: | ||||
| Issuance of short-term loans | (10,940,040) | (9,538,000) | ||
| Collections received from loans | 12,698,051 | 10,102,525 | ||
| Net cash provided by investing activities | 1,758,011 | 564,525 | ||
| Cash flows from financing activities: | ||||
| Repayment of line of credit, net | (1,602,139) | (1,701,661) | ||
| Dividend paid | (1,315,445) | (1,287,073) | ||
| Purchase of treasury shares | --- | (9,800 | ||
| Net cash used in financing activities | (2,917,584) | (2,998,534) | ||
| Net increase (decrease) in cash | 21,370 | (1,293,353) | ||
| Cash and restricted cash, beginning of period(1) | 201,762 | 1,691,995 | ||
| Cash and restricted cash, end of period(2) | $ | 223,132 | $ | 398,642 |
| Supplemental Disclosure of Cash Flow Information: | ||||
| Cash paid during the period for interest | $ | 437,993 | $ | 667,488 |
| Cash paid during the period for operating leases | $ | 15,991 | $ | 16,370 |
| Supplemental Schedule of Noncash Financing Activities: | ||||
| Dividend declared and payable | $ | 1,315,445 | $ | 1,315,445 |
| Supplemental Schedule of Noncash Operating and Investing Activities: | ||||
| Reduction in interest receivable in connection with the increase in loans receivable | $ | 13,122 | $ | 112,271 |
(1) At December 31, 2024 and 2023, cash and restricted cash included $23,750 and $1,587,773, respectively, of restricted cash.
(2) At March 31, 2025 and 2024, cash and restricted cash included $21,769 and $311,545, respectively, of restricted cash.
SOURCE: Manhattan Bridge Capital, Inc.
