Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 14, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2022 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 000-25991 | |
Entity Registrant Name | MANHATTAN BRIDGE CAPITAL, INC. | |
Entity Central Index Key | 0001080340 | |
Entity Tax Identification Number | 11-3474831 | |
Entity Incorporation, State or Country Code | NY | |
Entity Address, Address Line One | 60 Cutter Mill Road | |
Entity Address, City or Town | Great Neck | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 11021 | |
City Area Code | (516) | |
Local Phone Number | 444-3400 | |
Title of 12(b) Security | Common shares, par value $.001 | |
Trading Symbol | LOAN | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 11,494,945 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Loans receivable | $ 68,438,336 | $ 65,715,364 |
Interest receivable on loans | 1,028,917 | 955,443 |
Cash | 145,366 | 142,546 |
Other assets | 91,555 | 64,745 |
Operating lease right-of-use asset, net | 303,366 | 317,080 |
Deferred financing costs, net | 41,115 | 10,539 |
Total assets | 70,048,655 | 67,205,717 |
Liabilities: | ||
Line of credit | 18,389,558 | 15,645,970 |
Senior secured notes (net of deferred financing costs of $303,470 and $322,241, respectively) | 5,696,530 | 5,677,759 |
Deferred origination fees | 688,233 | 580,461 |
Accounts payable and accrued expenses | 148,211 | 154,169 |
Operating lease liability | 311,758 | 324,248 |
Dividends payable | 1,436,868 | 1,436,868 |
Total liabilities | 26,671,158 | 23,819,475 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock - $.01 par value; 5,000,000 shares authorized; none issued | ||
Common shares - $.001 par value; 25,000,000 shares authorized; 11,757,058 issued; 11,494,945 outstanding | 11,757 | 11,757 |
Additional paid-in capital | 45,526,012 | 45,522,746 |
Treasury stock, at cost – 262,113 shares | (798,939) | (798,939) |
Accumulated deficit | (1,361,333) | (1,349,322) |
Total stockholders’ equity | 43,377,497 | 43,386,242 |
Total liabilities and stockholders’ equity | $ 70,048,655 | $ 67,205,717 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Senior secured notes, deferred financing costs | $ 303,470 | $ 322,241 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, shares issued | 11,757,058 | 11,757,058 |
Common stock, shares outstanding | 11,494,945 | 11,494,945 |
Treasury stock, shares | 262,113 | 262,113 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement [Abstract] | ||
Interest income from loans | $ 1,643,789 | $ 1,442,814 |
Origination fees | 471,271 | 286,473 |
Total revenue | 2,115,060 | 1,729,287 |
Operating costs and expenses: | ||
Interest and amortization of deferred financing costs | 331,853 | 317,186 |
Referral fees | 1,361 | 1,751 |
General and administrative expenses | 361,489 | 308,981 |
Total operating costs and expenses | 694,703 | 627,918 |
Income from operations | 1,420,357 | 1,101,369 |
Other income | 4,500 | 4,500 |
Net income | $ 1,424,857 | $ 1,105,869 |
Basic and diluted net income per common share outstanding: | ||
—Basic | $ 0.12 | $ 0.12 |
—Diluted | $ 0.12 | $ 0.12 |
Weighted average number of common shares outstanding: | ||
—Basic | 11,494,945 | 9,619,945 |
—Diluted | 11,494,945 | 9,619,945 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Dec. 31, 2020 | $ 9,882 | $ 33,157,096 | $ (798,939) | $ (403,849) | $ 31,964,190 |
Beginning balance, shares at Dec. 31, 2020 | 9,882,058 | 262,113 | |||
Non-cash compensation | 3,266 | 3,266 | |||
Net income | 1,105,869 | 1,105,869 | |||
Ending balance, value at Mar. 31, 2021 | $ 9,882 | 33,160,362 | $ (798,939) | 702,020 | 33,073,325 |
Ending balance, shares at Mar. 31, 2021 | 9,882,058 | 262,113 | |||
Beginning balance, value at Dec. 31, 2021 | $ 11,757 | 45,522,746 | $ (798,939) | (1,349,322) | 43,386,242 |
Beginning balance, shares at Dec. 31, 2021 | 11,757,058 | 262,113 | |||
Non-cash compensation | 3,266 | 3,266 | |||
Dividends declared and payable | (1,436,868) | (1,436,868) | |||
Net income | 1,424,857 | 1,424,857 | |||
Ending balance, value at Mar. 31, 2022 | $ 11,757 | $ 45,526,012 | $ (798,939) | $ (1,361,333) | $ 43,377,497 |
Ending balance, shares at Mar. 31, 2022 | 11,757,058 | 262,113 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Cash flows from operating activities: | |||
Net income | $ 1,424,857 | $ 1,105,869 | |
Adjustments to reconcile net income to net cash provided by operating activities - | |||
Amortization of deferred financing costs | 24,015 | 24,263 | |
Adjustment to operating lease right-of-use asset and liability | 1,224 | 1,192 | |
Depreciation | 469 | 587 | |
Non-cash compensation expense | 3,266 | 3,266 | |
Changes in operating assets and liabilities: | |||
Interest receivable on loans | (73,474) | (87,896) | |
Other assets | (27,280) | (14,998) | |
Accounts payable and accrued expenses | (5,958) | (38,587) | |
Deferred origination fees | 107,772 | 71,289 | |
Net cash provided by operating activities | 1,454,891 | 1,064,985 | |
Cash flows from investing activities: | |||
Issuance of short term loans | (18,295,339) | (9,659,678) | |
Collections received from loans | 15,572,367 | 9,267,410 | |
Net cash used in investing activities | (2,722,972) | (392,268) | |
Cash flows from financing activities: | |||
Proceeds from line of credit, net | 2,743,588 | 132,174 | |
Dividend paid | (1,436,868) | (1,058,194) | |
Deferred financing costs incurred | (35,819) | ||
Net cash provided by (used in) financing activities | 1,270,901 | (926,020) | |
Net increase (decrease) in cash | 2,820 | (253,303) | |
Cash and restricted cash, beginning of year | [1] | 142,546 | 459,137 |
Cash and restricted cash, end of period | [1] | 145,366 | 205,834 |
Supplemental Cash Flow Information: | |||
Interest paid during the period | 277,757 | 302,160 | |
Operating leases paid during the period | 15,881 | 15,849 | |
Supplemental Information – Noncash Information: | |||
Dividend declared and payable | $ 1,436,868 | ||
[1] | At January 1, 2021, cash and restricted cash included $ 327,483 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) | Jan. 01, 2021USD ($) |
Statement of Cash Flows [Abstract] | |
Restricted Cash | $ 327,483 |
THE COMPANY
THE COMPANY | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
THE COMPANY | 1. THE COMPANY The accompanying unaudited consolidated financial statements of Manhattan Bridge Capital, Inc. (“MBC”), a New York corporation founded in 1989, and its consolidated subsidiary, MBC Funding II Corp. (“MBC Funding II”), a New York corporation formed in December 2015 (collectively referred to herein as the “Company”) have been prepared by the Company in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. However, in the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The accompanying unaudited consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the year ended December 31, 2021 and the notes thereto included in the Company’s Annual Report on Form 10-K. Results of consolidated operations for the interim period are not necessarily indicative of the operating results to be attained in the entire fiscal year. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual amounts could differ from those estimates. The consolidated financial statements include the accounts of MBC and MBC Funding II. All significant intercompany balances and transactions have been eliminated in consolidation. The Company offers short-term, secured, non–banking loans to real estate investors (also known as hard money) to fund their acquisition, renovation, rehabilitation or development of residential or commercial properties located in the New York metropolitan area, including New Jersey and Connecticut, and in Florida. Interest income from commercial loans is recognized, as earned, over the loan period. Origination fee revenue on commercial loans is amortized over the term of the respective note. |
RECENT TECHNICAL ACCOUNTING PRO
RECENT TECHNICAL ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
RECENT TECHNICAL ACCOUNTING PRONOUNCEMENTS | 2. RECENT TECHNICAL ACCOUNTING PRONOUNCEMENTS Management does not believe that any recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on the Company’s consolidated financial statements. |
COMMERCIAL LOANS
COMMERCIAL LOANS | 3 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
COMMERCIAL LOANS | 3. COMMERCIAL LOANS Loans Receivable The Company offers short-term secured non–banking loans to real estate investors (also known as hard money) to fund their acquisition and construction of properties located in the New York metropolitan area, including New Jersey and Connecticut, and in Florida. The loans are principally secured by collateral consisting of real estate and accompanied by personal guarantees from the principals of the borrowers. The loans are generally for a term of one year At March 31, 2022, the Company was committed to $ 8,801,947 At March 31, 2022, no one entity has loans outstanding representing more than 10 The Company generally grants loans for a term of one year. When a performing loan reaches its maturity and the borrower requests an extension, the Company may extend the term of the loan beyond one year. Prior to granting an extension of any loan, the Company reevaluates the underlying collateral. Credit Risk Credit risk profile based on loan activity as of March 31, 2022 and December 31, 2021: SCHEDULE OF CREDIT RISK Performing loans Developers- Residential Developers- Commercial Developers- Mixed Used Total outstanding loans March 31, 2022 $ 58,680,336 $ 7,994,000 $ 1,764,000 $ 68,438,336 December 31, 2021 $ 57,432,364 $ 5,819,000 $ 2,464,000 $ 65,715,364 At March 31, 2022, the Company’s loans receivable consisted of loans in the amount of $ 365,483 1,052,400 1,534,246 4,320,250 14,021,457 3,644,000 In all instances the borrowers are currently paying their interest and, generally, the Company receives a fee in connection with the extension of the loans. In all instances the borrower has either signed an extension agreement or are in the process of signing the extension. At March 31, 2022, no loan impairments exist and there are no provisions for impairments of loans or recoveries thereof. Subsequent to the balance sheet date, $ 2,450,550 2,050,550 |
LINE OF CREDIT
LINE OF CREDIT | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
LINE OF CREDIT | 4. LINE OF CREDIT The Company executed an Amended and Restated Credit and Security Agreement, as amended (the “Amended and Restated Credit Agreement”), with Webster Business Credit Corporation (“Webster”), Flushing Bank (“Flushing”) and Mizrahi Tefahot Bank Ltd (“Mizrahi” and together with Webster and Flushing, the “Lenders”), which established the Company’s credit line (the “Webster Credit Line”). Currently, the Webster Credit Line provides the Company with a credit line of $ 32.5 February 28, 2023 The interest rates relating to the Webster Credit Line equal (i) LIBOR plus a premium, which rate aggregated approximately 4.45 0.5 2.25 0.5 the Company may issue up to $ 20 10 500,000 On July 2, 2021, the Company entered into a Consent and Amendment Letter Agreement (the “Amendment”), with respect to the Amended and Restated Credit Agreement, with the Lenders and Mr. Ran, as guarantor, to amend the definition of “Change of Control” under the Amended and Restated Credit Agreement, to provide that Mr. Ran would be required to own at least 20 27 On March 7, 2022, the Company entered into a Waiver Agreement (the “Waiver”), with respect to the Amended and Restated Credit Agreement, with the Lenders and Mr. Ran, as guarantor, to provide the Company with a waiver of its covenant with respect to maintaining its fixed charge coverage ratio for the period ended December 31, 2021. In addition, the Waiver also provided that an amount of $ 700,000 Except as set forth in the preceding paragraph, the Company was in compliance with all covenants of the Webster Credit Line, as amended, as of March 31, 2022. At March 31, 2022, the outstanding amount under the Amended Credit Agreement was $ 18,389,558 0.5 4.45 |
SENIOR SECURED NOTES
SENIOR SECURED NOTES | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
SENIOR SECURED NOTES | 5. SENIOR SECURED NOTES On April 25, 2016, in an initial public offering, MBC Funding II issued 6 6,000,000 April 25, 2016 1,000 Under the terms of the Indenture, the aggregate outstanding principal balance of the mortgage loans held by MBC Funding II, together with MBC Funding II’s cash on hand, must always equal at least 120 MBC Funding II may redeem the Notes, in whole or in part, at any time after April 22, 2019 upon at least 30 days prior written notice to the Noteholders. The redemption price will be equal to the outstanding principal amount of the Notes redeemed plus the accrued but unpaid interest thereon up to, but not including, the date of redemption, without penalty or premium. No Notes were redeemed by MBC Funding II as of March 31, 2022. MBC Funding II is obligated to offer to redeem the Notes if there occurs a “change of control” with respect to MBC Funding II or the Company or if MBC Funding II or the Company sell any assets unless, in the case of an asset sale, the proceeds are reinvested in the business of the seller. The redemption price in connection with a “change of control” will be 101 The Company guaranteed MBC Funding II’s obligations under the Notes, which are secured by its pledge of 100 |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 3 Months Ended |
Mar. 31, 2022 | |
Basic and diluted net income per common share outstanding: | |
EARNINGS PER COMMON SHARE | 6. EARNINGS PER COMMON SHARE Basic and diluted earnings per share are calculated in accordance with Accounting Standards Codification (“ASC”) 260, “Earnings Per Share” (“ASC 260”). Under ASC 260, basic earnings per share is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding for the period. The computation of diluted earnings per share is similar to basic earnings per share, except that the denominator is increased to include the potential dilution from the exercise of stock options and warrants for common shares using the treasury stock method. The numerator in calculating both basic and diluted earnings per common share for each period is the reported net income. The denominator is based on the following weighted average number of common shares: SCHEDULE OF WEIGHTED AVERAGE NUMBER OF COMMON SHARES 2022 2021 Three Months Ended 2022 2021 Basic weighted average common shares outstanding 11,494,945 9,619,945 Incremental shares for assumed exercise of warrants 0 0 Diluted weighted average common shares outstanding 11,494,945 9,619,945 Vested warrants to purchase 33,612 common shares, that expired August 2021, were not included in the diluted earnings per share calculation for the three month period ended March 31, 2021 because the warrants were not in the money. |
STOCK _ BASED COMPENSATION
STOCK – BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK – BASED COMPENSATION | 7. STOCK – BASED COMPENSATION Stock based compensation expense recognized under ASC 718, “Compensation-Stock Compensation,” for each of the three month periods ended March 31, 2022 and 2021 of $ 3,266 represents the amortization of the fair value of 1,000,000 restricted shares granted to the Company’s Chief Executive Officer on September 9, 2011 of $ 195,968 , after adjusting for the effect on the fair value of the stock options related to this transaction. The fair value is being amortized over 15 years. At March 31, 2022, all 1,000,000 57,702 . |
COVID-19
COVID-19 | 3 Months Ended |
Mar. 31, 2022 | |
Unusual or Infrequent Items, or Both [Abstract] | |
COVID-19 | 8. COVID-19 As a result of the COVID-19 pandemic, the Company may experience difficulties collecting monthly interest on time from its borrowers, property values may decline and certain of the Company’s originated loans may need to be extended. Since the onset of the COVID-19 pandemic, the Company has continued to originate loans as well as continued to service its existing loans, though the Company observed lower demand for new loans. To date, the Company has not been materially impacted by the COVID-19 pandemic and will continue to closely monitor the impact of the COVID-19 pandemic on all aspects of its business. If the COVID-19 pandemic worsens in the geographic areas in which the Company operates, the pandemic could materially affect its financial and operational results. |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 3 Months Ended |
Mar. 31, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | 9. SUBSEQUENT EVENT In accordance with the dividend declared by the Company’s Board of Directors on February 9, 2022, a cash dividend of $ 0.125 1,436,868 April 15, 2022 April 8, 2022 |
COMMERCIAL LOANS (Tables)
COMMERCIAL LOANS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
SCHEDULE OF CREDIT RISK | Credit risk profile based on loan activity as of March 31, 2022 and December 31, 2021: SCHEDULE OF CREDIT RISK Performing loans Developers- Residential Developers- Commercial Developers- Mixed Used Total outstanding loans March 31, 2022 $ 58,680,336 $ 7,994,000 $ 1,764,000 $ 68,438,336 December 31, 2021 $ 57,432,364 $ 5,819,000 $ 2,464,000 $ 65,715,364 |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Basic and diluted net income per common share outstanding: | |
SCHEDULE OF WEIGHTED AVERAGE NUMBER OF COMMON SHARES | The denominator is based on the following weighted average number of common shares: SCHEDULE OF WEIGHTED AVERAGE NUMBER OF COMMON SHARES 2022 2021 Three Months Ended 2022 2021 Basic weighted average common shares outstanding 11,494,945 9,619,945 Incremental shares for assumed exercise of warrants 0 0 Diluted weighted average common shares outstanding 11,494,945 9,619,945 |
SCHEDULE OF CREDIT RISK (Detail
SCHEDULE OF CREDIT RISK (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Total outstanding loans | $ 68,438,336 | $ 65,715,364 |
Developers-Residential [Member] | ||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Total outstanding loans | 58,680,336 | 57,432,364 |
Developers-Commercial [Member] | ||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Total outstanding loans | 7,994,000 | 5,819,000 |
Developers Mixed Used [Member] | ||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Total outstanding loans | $ 1,764,000 | $ 2,464,000 |
COMMERCIAL LOANS (Details Narra
COMMERCIAL LOANS (Details Narrative) - USD ($) | Apr. 14, 2022 | Mar. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Debt instrument term | 1 year | |
Subsequent Event [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Repayments of debt | $ 2,450,550 | |
Originally Due In 2016 [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | $ 365,483 | |
Originally Due in 2017 [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 1,052,400 | |
Originally Due in 2019 [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 1,534,246 | |
Originally Due in 2020 [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 4,320,250 | |
Originally Due in 2021 [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 14,021,457 | |
Originally Due in the First Quarter of 2022 [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | $ 3,644,000 | |
Originally Due in Before 2021 [Member] | Subsequent Event [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Repayments of debt | $ 2,050,550 | |
Minimum [Member] | Accounts Receivable [Member] | Credit Concentration Risk [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan outstanding percentage | 10.00% | |
Construction Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Short term borrowings | $ 8,801,947 |
LINE OF CREDIT (Details Narrati
LINE OF CREDIT (Details Narrative) - USD ($) | Jul. 02, 2021 | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 |
Debt Instrument [Line Items] | ||||
Debt instrument face amount | $ 20,000,000 | |||
Equity ownership rate | 20.00% | |||
Dividends paid | 1,436,868 | $ 1,058,194 | ||
Line of credit outstanding amount | $ 18,389,558 | |||
Debt agency fee rate | 0.50% | |||
Debt instrument effective rate | 4.45% | |||
Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Equity ownership rate | 27.00% | |||
Amended and Restated Credit Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, interest rate at period end | 2.25% | |||
Percentage of agency fee | 0.50% | |||
Consent and Amendment Letter Amended Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, interest rate description | the Company entered into a Consent and Amendment Letter Agreement (the “Amendment”), with respect to the Amended and Restated Credit Agreement, with the Lenders and Mr. Ran, as guarantor, to amend the definition of “Change of Control” under the Amended and Restated Credit Agreement, to provide that Mr. Ran would be required to own at least 20%, instead of 27%, of the equity interests of the Company, on a fully diluted basis. | |||
Waiver Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Dividends paid | $ 700,000 | |||
Webster Credit Line [Member] | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 32,500,000 | |||
Line of credit, expiration date | Feb. 28, 2023 | |||
Line of credit facility, interest rate description | The interest rates relating to the Webster Credit Line equal (i) LIBOR plus a premium, which rate aggregated approximately 4.45%, including a 0.5% agency fee, as of March 31, 2022, or (ii) a Base Rate (as defined in the Amended and Restated Credit Agreement) plus 2.25% plus a 0.5% agency fee, as chosen by the Company for each drawdown. | |||
Webster Credit Line [Member] | Amended and Restated Credit Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Mortgage notes receivable, description | the Company may issue up to $20 million in bonds through its subsidiary, of which not more than $10 million of such bonds may be secured by mortgage notes receivable, and provided that the terms and conditions of such bonds are approved by Webster, subject to its reasonable discretion. | |||
Webster Credit Line [Member] | Amended and Restated Credit Agreement [Member] | Mr. Ran [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt guaranteed amount | $ 500,000 | |||
Webster Credit Line [Member] | Amended and Restated Credit Agreement [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Mortgage notes receivable | $ 10,000,000 | |||
Webster Credit Line [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, interest rate at period end | 4.45% | |||
Percentage of agency fee | 0.50% |
SENIOR SECURED NOTES (Details N
SENIOR SECURED NOTES (Details Narrative) - USD ($) | Apr. 25, 2016 | Mar. 31, 2022 |
Short-Term Debt [Line Items] | ||
Debt instrument interest rate | 4.45% | |
Debt instrument face amount | $ 20,000,000 | |
MBC Funding II Corp [Member] | ||
Short-Term Debt [Line Items] | ||
Debt instrument description | Under the terms of the Indenture, the aggregate outstanding principal balance of the mortgage loans held by MBC Funding II, together with MBC Funding II’s cash on hand, must always equal at least 120% of the aggregate outstanding principal amount of the Notes at all times. To the extent the aggregate principal amount of the mortgage loans owned by MBC Funding II plus MBC Funding II’s cash on hand is less than 120% of the aggregate outstanding principal balance of the Notes, MBC Funding II is required to repay, on a monthly basis, the principal amount of the Notes equal to the amount necessary such that, after giving effect to such repayment, the aggregate principal amount of all mortgage loans owned by MBC Funding II plus, MBC Funding II’s cash on hand at such time is equal to or greater than 120% of the outstanding principal amount of the Notes. For this purpose, each mortgage loan is deemed to have a value equal to its outstanding principal balance, unless the borrower is in default of its obligations. | |
Debt instrument collateral, percentage | 120.00% | |
Debt instrument, redemption price, percentage | 100.00% | |
MBC Funding II Corp [Member] | Change of Control [Member] | ||
Short-Term Debt [Line Items] | ||
Debt instrument, redemption price, percentage | 101.00% | |
Senior Secured Notes [Member] | ||
Short-Term Debt [Line Items] | ||
Principal amount of each note | $ 1,000 | |
Senior Secured Notes [Member] | Indenture [Member] | ||
Short-Term Debt [Line Items] | ||
Debt instrument interest rate | 6.00% | |
Debt instrument face amount | $ 6,000,000 | |
Debt instrument maturity date | Apr. 25, 2016 |
SCHEDULE OF WEIGHTED AVERAGE NU
SCHEDULE OF WEIGHTED AVERAGE NUMBER OF COMMON SHARES (Details) - shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Basic and diluted net income per common share outstanding: | ||
Basic weighted average common shares outstanding | 11,494,945 | 9,619,945 |
Incremental shares for assumed exercise of warrants | 0 | 0 |
Diluted weighted average common shares outstanding | 11,494,945 | 9,619,945 |
EARNINGS PER COMMON SHARE (Deta
EARNINGS PER COMMON SHARE (Details Narrative) | 3 Months Ended |
Mar. 31, 2021shares | |
Vested Warrants [Member] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 33,612 |
STOCK _ BASED COMPENSATION (Det
STOCK – BASED COMPENSATION (Details Narrative) - USD ($) | Sep. 09, 2011 | Mar. 31, 2022 | Mar. 31, 2021 |
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||
Share-Based Payment Arrangement, Noncash Expense | $ 3,266 | $ 3,266 | |
Remaining restricted shares | 1,000,000 | ||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 57,702 | ||
Chief Executive Officer [Member] | |||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||
Remaining restricted shares | 1,000,000 | ||
Stock Issued During Period, Value, Restricted Stock Award, Gross | $ 195,968 | ||
Fair value of restricted shares amortization period | 15 years |
SUBSEQUENT EVENT (Details Narra
SUBSEQUENT EVENT (Details Narrative) - USD ($) | Feb. 09, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Subsequent Events [Abstract] | |||
Cash dividend | $ 0.125 | ||
Aggregate amount | $ 1,436,868 | $ 1,436,868 | $ 1,436,868 |
Dividend payable date | Apr. 15, 2022 | ||
Dividend payable record date | Apr. 8, 2022 |