Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Mar. 11, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2023 | ||
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, Address Line Two | Suite 205 | ||
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 Stock, par value $.001 per share | ||
Trading Symbol | LOAN | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
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 Public Float | $ 43,706,144 | ||
Entity Common Stock, Shares Outstanding | 11,438,651 | ||
ICFR Auditor Attestation Flag | false | ||
Document Financial Statement Error Correction [Flag] | false | ||
Auditor Firm ID | 694 | ||
Auditor Name | Hoberman & Lesser, CPA’s LLP | ||
Auditor Location | New York |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Loans receivable | $ 73,048,403 | $ 74,483,463 |
Interest receivable on loans | 1,395,905 | 1,363,502 |
Cash | 104,222 | 103,540 |
Cash - restricted | 1,587,773 | |
Other assets | 63,636 | 59,566 |
Operating lease right-of-use asset, net | 207,364 | 262,222 |
Deferred financing costs, net | 27,583 | 7,708 |
Total assets | 76,434,886 | 76,280,001 |
Liabilities: | ||
Line of credit | 25,152,338 | 24,994,234 |
Senior secured notes (net of deferred financing costs of $172,069 and $247,155, respectively) | 5,827,931 | 5,752,845 |
Deferred origination fees | 719,019 | 669,128 |
Accounts payable and accrued expenses | 295,292 | 289,868 |
Operating lease liability | 220,527 | 273,485 |
Dividends payable | 1,287,073 | 1,436,868 |
Total liabilities | 33,502,180 | 33,416,428 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred shares - $.01 par value; 5,000,000 shares authorized; none issued | ||
Common shares - $.001 par value; 25,000,000 shares authorized; 11,757,058 issued; 11,440,651 and 11,494,945 outstanding, respectively | 11,757 | 11,757 |
Additional paid-in capital | 45,548,876 | 45,535,811 |
Less: Treasury stock, at cost – 316,407 and 262,113 shares | (1,060,606) | (798,939) |
Accumulated deficit | (1,567,321) | (1,885,056) |
Total stockholders’ equity | 42,932,706 | 42,863,573 |
Total liabilities and stockholders’ equity | $ 76,434,886 | $ 76,280,001 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Senior secured notes, deferred financing costs | $ 172,069 | $ 247,155 |
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 | 11,440,651 | 11,494,945 |
Treasury stock, shares | 316,407 | 262,113 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Revenue: | ||
Interest income from loans | $ 7,976,232 | $ 6,772,889 |
Origination fees | 1,820,024 | 1,798,075 |
Total Revenue | 9,796,256 | 8,570,964 |
Operating costs and expenses: | ||
Interest and amortization of deferred financing costs | 2,525,935 | 1,822,825 |
Referral fees | 2,153 | 4,500 |
General and administrative expenses | 1,825,227 | 1,549,251 |
Total operating costs and expenses | 4,353,315 | 3,376,576 |
Income from operations | 5,442,941 | 5,194,388 |
Other income | 33,880 | 18,000 |
Income before income tax expense | 5,476,821 | 5,212,388 |
Income tax expense | (650) | (650) |
Net income | $ 5,476,171 | $ 5,211,738 |
Basic and diluted net income per common share outstanding: | ||
—Basic | $ 0.48 | $ 0.45 |
—Diluted | $ 0.48 | $ 0.45 |
Weighted average number of common shares outstanding | ||
—Basic | 11,469,741 | 11,494,945 |
—Diluted | 11,469,741 | 11,494,945 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock, Common [Member] | Retained Earnings [Member] | Total |
Balance at Dec. 31, 2021 | $ 11,757 | $ 45,522,746 | $ (798,939) | $ (1,349,322) | $ 43,386,242 |
Balance, shares at Dec. 31, 2021 | 11,757,058 | 262,113 | |||
Non-cash compensation | 13,065 | 13,065 | |||
Dividends paid | (4,310,604) | (4,310,604) | |||
Dividends declared and payable | (1,436,868) | (1,436,868) | |||
Net income | 5,211,738 | 5,211,738 | |||
Balance at Dec. 31, 2022 | $ 11,757 | 45,535,811 | $ (798,939) | (1,885,056) | 42,863,573 |
Balance, shares at Dec. 31, 2022 | 11,757,058 | 262,113 | |||
Purchase of treasury shares | $ (261,667) | (261,667) | |||
Purchase of treasury stock, shares | 54,294 | ||||
Non-cash compensation | 13,065 | 13,065 | |||
Dividends paid | (3,871,363) | (3,871,363) | |||
Dividends declared and payable | (1,287,073) | (1,287,073) | |||
Net income | 5,476,171 | 5,476,171 | |||
Balance at Dec. 31, 2023 | $ 11,757 | $ 45,548,876 | $ (1,060,606) | $ (1,567,321) | $ 42,932,706 |
Balance, shares at Dec. 31, 2023 | 11,757,058 | 316,407 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | |||
Cash flows from operating activities: | ||||
Net income | $ 5,476,171 | $ 5,211,738 | ||
Adjustments to reconcile net income to net cash provided by operating activities - | ||||
Amortization of deferred financing costs | 93,403 | 113,736 | ||
Depreciation | 4,057 | 2,307 | ||
Non-cash compensation expense | 13,065 | 13,065 | ||
Adjustment to operating lease right-of-use asset and liability | 1,900 | 4,096 | ||
Changes in operating assets and liabilities: | ||||
Interest receivable on loans | (32,403) | (408,059) | ||
Other assets | (3,042) | 5,742 | ||
Accounts payable and accrued expenses | 5,424 | 135,699 | ||
Deferred origination fees | 49,891 | 88,667 | ||
Net cash provided by operating activities | 5,608,466 | 5,166,991 | ||
Cash flows from investing activities: | ||||
Issuance of short term loans | (56,301,376) | (60,915,596) | ||
Collections received from loans | 57,736,436 | 52,147,497 | ||
Purchase of fixed assets | (5,085) | (2,871) | ||
Net cash provided by (used in) investing activities | 1,429,975 | (8,770,970) | ||
Cash flows from financing activities: | ||||
Proceeds from line of credit, net | 158,104 | 9,348,264 | ||
Dividends paid | (5,308,231) | (5,747,472) | ||
Purchase of treasury shares | (261,667) | |||
Deferred financing costs incurred | (38,192) | (35,819) | ||
Net cash (used in) provided by financing activities | (5,449,986) | 3,564,973 | ||
Net increase (decrease) in cash and restricted cash | 1,588,455 | (39,006) | ||
Cash, beginning of year | 103,540 | [1] | 142,546 | |
Cash and restricted cash, end of year | [1] | 1,691,995 | 103,540 | |
Supplemental Disclosure of Cash Flow Information: | ||||
Cash paid for taxes during the year | 650 | 650 | ||
Cash paid for interest during the year | 2,423,838 | 1,581,935 | ||
Cash paid for operating leases during the year | 64,055 | 63,621 | ||
Supplemental Schedule of Noncash Financing Activities: | ||||
Dividend declared and payable | $ 1,287,073 | $ 1,436,868 | ||
[1]At December 31, 2023, cash and restricted cash included $ 1,587,773 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) | Dec. 31, 2023 USD ($) |
Statement of Cash Flows [Abstract] | |
Restricted cash | $ 1,587,773 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Pay vs Performance Disclosure [Table] | ||
Net Income (Loss) Attributable to Parent | $ 5,476,171 | $ 5,211,738 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Insider Trading Arrangements [Line Items] | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
The Company
The Company | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company | 1. The Company Manhattan Bridge Capital, Inc. (“MBC”) and its wholly-owned subsidiary, MBC Funding II Corp. (“MBC Funding”) (collectively, the “Company”), offer short-term, secured, non–banking loans (sometimes referred to as “hard money” loans) to real estate investors 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. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 2. Significant Accounting Policies Basis of Presentation The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Principles of Consolidation The consolidated financial statements include the accounts of Manhattan Bridge Capital, Inc. and its wholly-owned subsidiary, MBC Funding. All significant intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with U.S. 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 amounts of revenues and expenses during the reporting period. Management will base the use of estimates on (a) a preset number of assumptions that consider past experience, (b) future projections, and (c) general financial market conditions. Actual amounts could differ from those estimates. Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and short-term commercial loans. The Company maintains its cash with major financial institutions. Accounts at the financial institutions are insured by the Federal Deposit Insurance Corporation (FDIC) up to $ 250,000 Credit risks associated with short-term commercial loans the Company makes to real estate investors and related interest receivable are described in Note 4. Allowance for Credit Losses Effective January 1, 2020, the Company adopted Accounting Standards Update (“ASU”) 2016-13, “Financial Instruments – Credit Losses (Accounting Standards Codification (“ASC”) 326).” The ASU introduced a new credit loss methodology, Current Expected Credit Losses (“CECL”), which requires earlier recognition of credit losses, while also providing additional transparency about credit risk. The CECL methodology utilizes a lifetime “expected credit loss” methodology for the recognition of credit losses for loans and other receivables at the time the financial asset is originated or acquired. The expected credit losses are adjusted each period for changes in expected lifetime credit losses. This method replaces the multiple existing impairment methods in current U.S. GAAP, which generally require a loss be incurred before it is recognized. The Company estimates its CECL reserve primarily using the Weighted Average Remaining Maturity (“WARM”) method, which has been identified as an acceptable loss-rate method for estimating CECL reserves in the Financial Accounting Standards Board Staff Q&A ASC 326, No.1. The WARM method requires reference to historic loss data taking into consideration expected economic conditions over the relevant timeframe. The Company applies the WARM method for the majority of its loan portfolio, which loans share similar risk characteristics. Application of the WARM method to estimate a CECL reserve requires judgment, including (i) the appropriate historical loan loss reference data, (ii) the expected timing and amount of future loan fundings and repayments, and (iii) the current credit quality of the Company’s loan portfolio and expectations of performance and market conditions over the relevant time period. To estimate the historic loan losses relevant to the Company’s portfolio, the Company reviews its historical loan performance, which includes zero realized principal losses since the inception of the Company’s business. In addition, the Company reviews each loan on a quarterly basis and evaluates the borrower’s ability to pay the monthly interest, the borrower’s likelihood of executing the original exit strategy, as well as the loan-to-value ratio. Based on these analyses, as of December 31, 2023 and 2022, no allowance for credit losses is required. Failure to properly measure an allowance for credit losses could result in the overstatement of earnings and the carrying value of the loans receivable. Actual losses, if any, could differ significantly from estimated amounts. Accrued interest receivable on loans receivable is excluded from the estimate of credit losses. Income Taxes The Company follows ASC Sub-Topic 740-10, “Accounting for Uncertainty in Income Taxes”, which prescribes a recognition threshold and measurement attribute for financial statement recognition and measurement of a tax position taken, or expected to be taken, in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. As of December 31, 2023 and 2022, the Company has no material uncertain tax positions to be accounted for in the consolidated financial statements. The Company recognizes interest and penalties related to uncertain tax positions, if any, as part of income tax expense. The Company is organized and conducts its operations to qualify as a real estate investment trust (“REIT”) for federal income tax purposes. The Company elected to be taxed as a REIT commencing with its taxable year ended December 31, 2014. A REIT calculates taxable income similar to other domestic corporations, with the major difference being a REIT is entitled to a deduction for dividends paid. A REIT is generally required to distribute each year at least 90 10 Revenue Recognition 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. Deferred Financing Costs The Company presents deferred financing costs, excluding those incurred in connection with its line of credit, in the consolidated balance sheet as a direct reduction from the related debt liability rather than an asset, in accordance with ASU 2015-03, “Interest – Imputation of Interest (ASC Sub-Topic 835-30): Simplifying the Presentation of Debt Issuance Costs.” These costs, incurred in connection with the issuance of the Company’s senior secured notes, are being amortized over ten years, using the straight-line method, as the difference between use of the effective interest method is not material. The amortization of loan costs are included in interest and amortization of deferred financing costs in the accompanying consolidated statements of operations. Deferred financing costs in connection with the Company’s 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”), which established the Company’s credit line (the “Webster Credit Line”), as discussed in Note 5, are presented as an asset in the balance sheet, in accordance with ASU 2015-15, “Interest – Imputation of Interest (ASC Sub-Topic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated With Line of Credit Arrangements.” These costs are being amortized over the term of the respective agreement, using the straight-line method. Earnings Per Share Basic and diluted EPS are calculated in accordance with ASC 260, “Earnings Per Share.” Under ASC 260, basic earnings per share is computed by dividing income available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted EPS includes 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 EPS for each year is the reported net income. There were no outstanding stock options or warrants at December 31, 2023 and 2022. Stock-Based Compensation The Company measured and recognized compensation awards for all stock option grants made to employees and directors, based on their fair value in accordance with ASC 718, “Compensation - Stock Compensation” (“ASC 718”), which establishes standards for the accounting for transactions in which an entity exchanges its equity instruments for goods or services. A key provision of this statement is to measure the cost of employee services received in exchange for an award of equity instruments (including stock options) based on the grant-date fair value of the award. The cost will be recognized over the service period during which an employee is required to provide service in exchange for the award (i.e., the requisite service period or vesting period). The Company accounts for equity instruments issued to non-employees in accordance with the provisions of ASC 718 and ASC Sub-Topic 505-50, “Equity-Based Payment to Non-Employees.” All transactions with non-employees in which goods or services are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more appropriately measurable. Fair Value of Financial Instruments For the line of credit, as well as interest bearing commercial loans held by the Company, the carrying amount approximates fair value due to the relative short-term nature of such instruments. The Company determines the fair value of its senior secured notes using market prices which currently approximate their carrying amount. Recent 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. |
Cash - Restricted
Cash - Restricted | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Cash - Restricted | 3. Cash - Restricted Restricted cash mainly represents collections received, pending clearance, from the Company’s commercial loans and is primarily dedicated to the reduction of the Company’s Webster Credit Line established pursuant to the Amended and Restated Credit Agreement (see Note 5). |
Commercial Loans
Commercial Loans | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Commercial Loans | 4. 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 For the years ended December 31, 2023 and 2022, the total amounts of $ 56,301,376 60,915,596 57,736,436 52,147,497 40,000 3,300,000 (i) 9.9% of the aggregate amount of the Company’s loan portfolio (not including the loan under consideration) and (ii) $3.5 million 9 13.5 0 2 In the case of acquisition financing, the principal amount of the loan usually does not exceed 75% of the value of the property (as determined by an independent appraiser), and in the case of construction financing, up to 80% of construction costs At December 31, 2023, the Company was committed to $ 7,978,089 At December 31, 2023 and 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 December 31, 2023 and 2022: Schedule of Credit Risk Performing loans Developers-Residential Developers-Commercial Developers-Mixed Use Total outstanding loans December 31, 2023 $ 64,729,403 $ 7,300,000 $ 1,019,000 $ 73,048,403 December 31, 2022 $ 62,264,463 $ 9,300,000 $ 2,919,000 $ 74,483,463 At December 31, 2023, the Company’s loans receivable consisted of loans in the amount of $ 33,343 760,433 2,210,250 1,854,000 7,225,000 20,480,886 46,678 500,000 749,391 3,230,250 6,515,000 19,802,356 Generally, borrowers are paying their interest, and the Company receives a fee in connection with the extension of the loans. In all instances, except as described below, the borrowers have either signed an extension agreement or are in the process of signing an extension. Accordingly, at December 31, 2023, no loan impairments exist and there are no provisions for impairments of loans or recoveries thereof. During February 2023, the Company sold one of its loans receivable at its face value of $ 485,000 152,000 Subsequent to the balance sheet date, approximately $ 6,932,000 2,767,000 |
Line of Credit
Line of Credit | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Line of Credit | 5. Line of Credit The Company is a party to the Amended and Restated Credit and Security Agreement with Webster, Flushing and Mizrahi (the “Lenders”), which provides for the Webster Credit Line. Currently, the Webster Credit Line provides the Company with a credit line of $ 32.5 The interest rates relating to the Webster Credit Line equal (i) the Secured Overnight Financing Rate (“SOFR”) plus a premium, which rate aggregated approximately 8.96 0.5 2.00 0.5 The Webster Credit Line contains various covenants and restrictions including, among other covenants and restrictions, limiting the amount that the Company can borrow relative to the value of the underlying collateral, maintaining various financial ratios and limitations on the terms of loans the Company makes to its customers, limiting the Company’s ability to pay dividends under certain circumstances, and limiting the Company’s ability to repurchase its common shares, sell assets, engage in mergers or consolidations, grant liens, and enter into transactions with affiliates. In addition, the Webster Credit Line contains a cross default provision which will deem any default under any indebtedness owed by the Company or its subsidiary, MBC Funding, as a default under the credit line. Under the Amended and Restated Credit Agreement, the Company may repurchase, redeem or otherwise retire its equity securities in an amount not to exceed ten percent of the Company’s annual net income from the prior fiscal year. Further, 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 On March 7, 2022, the Company entered into a waiver agreement, 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 agreement also provided an amount of $ 700,000 On April 25, 2022, the Company entered into an amendment, with respect to the Amended and Restated Credit Agreement with the Lenders and Mr. Ran, as guarantor, to increase the limit on individual loans as well as the concentration of any mortgagor (together with guarantors and other related entities and affiliates), and also permit the Company to originate loans in the state of Florida in any county south of, and including, Palm Beach and Lee counties, in an amount up to $ 4.875 On January 31, 2023, the Company entered into another amendment, effective as of January 2, 2023, with respect to the Amended and Restated Credit Agreement with the Lenders and Mr. Ran, as guarantor, to (i) extend the maturity date of the credit line by three years to February 28, 2026; (ii) transition the applicable benchmark from LIBOR to SOFR and adjust the applicable margin with respect to Base Rate Loans and SOFR Loans; (iii) update the required calculation with respect to the fixed charge coverage ratio covenant; (iv) further increase the limit on individual loans and the concentration of any mortgagor (together with guarantors and other related entities and affiliates); and (v) eliminate the requirement to pledge additional mortgage loans as collateral for the credit line. In addition, the terms of the personal guaranty provided by Mr. Ran were amended such that the potential sums owed under such guaranty will not exceed the sum of $ 1,000,000 The costs to establish and amend the Webster Credit Line are being amortized over the term of the respective agreement, using the straight-line method. The amortization costs for the years ended December 31, 2023 and 2022 were $ 18,318 39,583 The Company was in compliance with all covenants of the Webster Credit Line, as amended, as of December 31, 2023. At December 31, 2023, the outstanding amount under the Amended Credit Agreement was $ 25,152,338 0.5 8.96 |
Senior Secured Notes
Senior Secured Notes | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Senior Secured Notes | 6. Senior Secured Notes On April 25, 2016, in an initial public offering, MBC Funding issued 6 April 22, 2026 6,000,000 1,000 Under the terms of the Indenture, the aggregate outstanding principal balance of the mortgage loans held by MBC Funding, together with MBC Funding’s cash on hand, must always equal at least 120 MBC Funding 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 as of December 31, 2023. Each Noteholder had the right to cause MBC Funding to redeem his, her or its Notes on April 22, 2021 by notifying MBC Funding in writing, no earlier than November 22, 2020 and no later than January 22, 2021. No Noteholder exercised such right during the required time frame and as such the Notes are no longer redeemable by the Noteholders. MBC Funding is obligated to offer to redeem the Notes if there occurs a “change of control” with respect to MBC Funding or the Company or if MBC Funding 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’s obligations under the Notes, which are secured by its pledge of 100 The Company’s principal executive officers consist of Assaf Ran, who serves as its Chief Executive Officer and President, and Vanessa Kao, who serves as its Chief Financial Officer. As of December 31, 2023, each of Mr. Ran and Ms. Kao own an aggregate of $ 704,000 288,000 |
Simple IRA Plan
Simple IRA Plan | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Simple IRA Plan | 7. Simple IRA Plan On October 26, 2000, the board of directors approved a Simple IRA Plan (the “IRA Plan”) to attract and retain valuable executives. The IRA Plan allows for participation by up to 100 19,554 18,985 |
Stockholders_ Equity
Stockholders’ Equity | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Stockholders’ Equity | 8. Stockholders’ Equity The Company adopted a share buyback program on April 11, 2023, for the repurchase of up to 100,000 54,294 262,000 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | 9. Stock-Based Compensation Stock based compensation expense recognized under ASC 718 of $ 13,065 1,000,000 195,968 15 1,000,000 34,839 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 10. Commitments and Contingencies Operating Leases On October 27, 2020, the Company amended its existing lease (the “Lease Amendment”) for its corporate headquarters located at 60 Cutter Mill Road, Great Neck, New York, to expand the office premises and to extend the term of the non-cancelable lease through November 30, 2027 the Lease Amendment provides for gradual rent increases from approximately $ 4,500 5,100 At December 31, 2023, approximate future minimum lease payments, including mandatory fixed electricity charges, are as follows: Schedule of Future Minimum Lease Payments 2024 $ 61,526 2025 60,926 2026 60,926 2027 55,848 Total minimum lease payments 239,226 Less: amount representing interest (18,699 ) Present Value of Net Minimum Lease Payments $ 220,527 At December 31, 2023, the Company’s operating leases had a weighted-average remaining lease term of 3.91 4.15 Rent expense, including fixed electricity charges and variable real estate taxes, in the years 2023 and 2022 was approximately $ 64,000 63,000 Employment Agreements In March 1999, the Company entered into an employment agreement with Mr. Ran, pursuant to which: (i) Mr. Ran’s employment term renews automatically on June 30 th th 350,000 In June 2022, the Compensation Committee approved an increase of Mr. Ran’s annual base salary from $ 305,000 350,000 350,000 329,231 60,000 70,000 |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Event | 11. Subsequent Event In accordance with the dividend declared by the Company’s Board of Directors on November 28, 2023, a cash dividend of $ 0.1125 1,287,073 January 16, 2024 December 29, 2023 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of Manhattan Bridge Capital, Inc. and its wholly-owned subsidiary, MBC Funding. All significant intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. 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 amounts of revenues and expenses during the reporting period. Management will base the use of estimates on (a) a preset number of assumptions that consider past experience, (b) future projections, and (c) general financial market conditions. Actual amounts could differ from those estimates. |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and short-term commercial loans. The Company maintains its cash with major financial institutions. Accounts at the financial institutions are insured by the Federal Deposit Insurance Corporation (FDIC) up to $ 250,000 Credit risks associated with short-term commercial loans the Company makes to real estate investors and related interest receivable are described in Note 4. |
Allowance for Credit Losses | Allowance for Credit Losses Effective January 1, 2020, the Company adopted Accounting Standards Update (“ASU”) 2016-13, “Financial Instruments – Credit Losses (Accounting Standards Codification (“ASC”) 326).” The ASU introduced a new credit loss methodology, Current Expected Credit Losses (“CECL”), which requires earlier recognition of credit losses, while also providing additional transparency about credit risk. The CECL methodology utilizes a lifetime “expected credit loss” methodology for the recognition of credit losses for loans and other receivables at the time the financial asset is originated or acquired. The expected credit losses are adjusted each period for changes in expected lifetime credit losses. This method replaces the multiple existing impairment methods in current U.S. GAAP, which generally require a loss be incurred before it is recognized. The Company estimates its CECL reserve primarily using the Weighted Average Remaining Maturity (“WARM”) method, which has been identified as an acceptable loss-rate method for estimating CECL reserves in the Financial Accounting Standards Board Staff Q&A ASC 326, No.1. The WARM method requires reference to historic loss data taking into consideration expected economic conditions over the relevant timeframe. The Company applies the WARM method for the majority of its loan portfolio, which loans share similar risk characteristics. Application of the WARM method to estimate a CECL reserve requires judgment, including (i) the appropriate historical loan loss reference data, (ii) the expected timing and amount of future loan fundings and repayments, and (iii) the current credit quality of the Company’s loan portfolio and expectations of performance and market conditions over the relevant time period. To estimate the historic loan losses relevant to the Company’s portfolio, the Company reviews its historical loan performance, which includes zero realized principal losses since the inception of the Company’s business. In addition, the Company reviews each loan on a quarterly basis and evaluates the borrower’s ability to pay the monthly interest, the borrower’s likelihood of executing the original exit strategy, as well as the loan-to-value ratio. Based on these analyses, as of December 31, 2023 and 2022, no allowance for credit losses is required. Failure to properly measure an allowance for credit losses could result in the overstatement of earnings and the carrying value of the loans receivable. Actual losses, if any, could differ significantly from estimated amounts. Accrued interest receivable on loans receivable is excluded from the estimate of credit losses. |
Income Taxes | Income Taxes The Company follows ASC Sub-Topic 740-10, “Accounting for Uncertainty in Income Taxes”, which prescribes a recognition threshold and measurement attribute for financial statement recognition and measurement of a tax position taken, or expected to be taken, in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. As of December 31, 2023 and 2022, the Company has no material uncertain tax positions to be accounted for in the consolidated financial statements. The Company recognizes interest and penalties related to uncertain tax positions, if any, as part of income tax expense. The Company is organized and conducts its operations to qualify as a real estate investment trust (“REIT”) for federal income tax purposes. The Company elected to be taxed as a REIT commencing with its taxable year ended December 31, 2014. A REIT calculates taxable income similar to other domestic corporations, with the major difference being a REIT is entitled to a deduction for dividends paid. A REIT is generally required to distribute each year at least 90 10 |
Revenue Recognition | Revenue Recognition 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. |
Deferred Financing Costs | Deferred Financing Costs The Company presents deferred financing costs, excluding those incurred in connection with its line of credit, in the consolidated balance sheet as a direct reduction from the related debt liability rather than an asset, in accordance with ASU 2015-03, “Interest – Imputation of Interest (ASC Sub-Topic 835-30): Simplifying the Presentation of Debt Issuance Costs.” These costs, incurred in connection with the issuance of the Company’s senior secured notes, are being amortized over ten years, using the straight-line method, as the difference between use of the effective interest method is not material. The amortization of loan costs are included in interest and amortization of deferred financing costs in the accompanying consolidated statements of operations. Deferred financing costs in connection with the Company’s 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”), which established the Company’s credit line (the “Webster Credit Line”), as discussed in Note 5, are presented as an asset in the balance sheet, in accordance with ASU 2015-15, “Interest – Imputation of Interest (ASC Sub-Topic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated With Line of Credit Arrangements.” These costs are being amortized over the term of the respective agreement, using the straight-line method. |
Earnings Per Share | Earnings Per Share Basic and diluted EPS are calculated in accordance with ASC 260, “Earnings Per Share.” Under ASC 260, basic earnings per share is computed by dividing income available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted EPS includes 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 EPS for each year is the reported net income. There were no outstanding stock options or warrants at December 31, 2023 and 2022. |
Stock-Based Compensation | Stock-Based Compensation The Company measured and recognized compensation awards for all stock option grants made to employees and directors, based on their fair value in accordance with ASC 718, “Compensation - Stock Compensation” (“ASC 718”), which establishes standards for the accounting for transactions in which an entity exchanges its equity instruments for goods or services. A key provision of this statement is to measure the cost of employee services received in exchange for an award of equity instruments (including stock options) based on the grant-date fair value of the award. The cost will be recognized over the service period during which an employee is required to provide service in exchange for the award (i.e., the requisite service period or vesting period). The Company accounts for equity instruments issued to non-employees in accordance with the provisions of ASC 718 and ASC Sub-Topic 505-50, “Equity-Based Payment to Non-Employees.” All transactions with non-employees in which goods or services are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more appropriately measurable. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments For the line of credit, as well as interest bearing commercial loans held by the Company, the carrying amount approximates fair value due to the relative short-term nature of such instruments. The Company determines the fair value of its senior secured notes using market prices which currently approximate their carrying amount. |
Recent Accounting Pronouncements | Recent 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 (Tables)
Commercial Loans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Schedule of Credit Risk | Credit risk profile based on loan activity as of December 31, 2023 and 2022: Schedule of Credit Risk Performing loans Developers-Residential Developers-Commercial Developers-Mixed Use Total outstanding loans December 31, 2023 $ 64,729,403 $ 7,300,000 $ 1,019,000 $ 73,048,403 December 31, 2022 $ 62,264,463 $ 9,300,000 $ 2,919,000 $ 74,483,463 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments | At December 31, 2023, approximate future minimum lease payments, including mandatory fixed electricity charges, are as follows: Schedule of Future Minimum Lease Payments 2024 $ 61,526 2025 60,926 2026 60,926 2027 55,848 Total minimum lease payments 239,226 Less: amount representing interest (18,699 ) Present Value of Net Minimum Lease Payments $ 220,527 |
Significant Accounting Polici_3
Significant Accounting Policies (Details Narrative) | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Accounting Policies [Abstract] | |
Cash, FDIC insured amount | $ 250,000 |
Reit percentage of income tax | 90% |
Reit remaining percentage of income tax | 10% |
Schedule of Credit Risk (Detail
Schedule of Credit Risk (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Total outstanding loans | $ 73,048,403 | $ 74,483,463 |
Developers-Residential [Member] | ||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Total outstanding loans | 64,729,403 | 62,264,463 |
Developers-Commercial [Member] | ||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Total outstanding loans | 7,300,000 | 9,300,000 |
Developers-Mixed Used [Member] | ||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Total outstanding loans | $ 1,019,000 | $ 2,919,000 |
Commercial Loans (Details Narra
Commercial Loans (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Jan. 01, 2024 | Feb. 28, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan term | 1 year | |||
Loan lent amount | $ 56,301,376 | $ 60,915,596 | ||
Collections received from loans | $ 57,736,436 | 52,147,497 | ||
Short term loans receivable, limitation on face amount description | (i) 9.9% of the aggregate amount of the Company’s loan portfolio (not including the loan under consideration) and (ii) $3.5 million | |||
Short term loans receivable, loan-to-value ratio | In the case of acquisition financing, the principal amount of the loan usually does not exceed 75% of the value of the property (as determined by an independent appraiser), and in the case of construction financing, up to 80% of construction costs | |||
Proceeds fom sale of notes receivable | $ 485,000 | |||
Subsequent Event [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Payment for loans receivable | $ 6,932,000 | |||
Subsequent Event [Member] | Originally Due in or Before 2023 [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Payment for loans receivable | $ 2,767,000 | |||
Assaf Ran [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Related-party transactions | $ 152,000 | |||
Originally Due in 2016 [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | $ 33,343 | 46,678 | ||
Originally Due in 2019 [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | 760,433 | 749,391 | ||
Originally Due in 2020 [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | 2,210,250 | 3,230,250 | ||
Originally Due in 2021 [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | 1,854,000 | 6,515,000 | ||
Originally Due in 2022 [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | 7,225,000 | 19,802,356 | ||
Originally Due in 2023 [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | 20,480,886 | |||
Originally Due in 2017 [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | $ 500,000 | |||
Construction Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Principal amount committed in construction loans | $ 7,978,089 | |||
Loan outstanding percentage | 10% | 10% | ||
Minimum [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable fixed rates of interest | 9% | |||
Origination fees, percentage of principal amount of the loan | 0% | |||
Maximum [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable fixed rates of interest | 13.50% | |||
Origination fees, percentage of principal amount of the loan | 2% | |||
Historical Value [Member] | Minimum [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and leases receivable, face amount | $ 40,000 | |||
Historical Value [Member] | Maximum [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and leases receivable, face amount | $ 3,300,000 |
Line of Credit (Details Narrati
Line of Credit (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Jan. 31, 2023 | Apr. 25, 2022 | |
Debt Instrument [Line Items] | |||||
Debt agency fee rate | 0.50% | ||||
Line of credit outstanding amount | $ 25,152,338 | ||||
Interest rate percentage | 8.96% | ||||
Waiver Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Payment on dividends | $ 700,000 | ||||
Amended and Restated Credit Agreement [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Originate loans amount | $ 4,875,000 | ||||
Webster Credit Line [Member] | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 32,500,000 | ||||
Line of credit facility, interest rate description | The interest rates relating to the Webster Credit Line equal (i) the Secured Overnight Financing Rate (“SOFR”) plus a premium, which rate aggregated approximately 8.96%, including a 0.5% agency fee, as of December 31, 2023, or (ii) a Base Rate (as defined in the Amended and Restated Credit Agreement) plus 2.00% and a 0.5% agency fee, as chosen by the Company for each drawdown | ||||
Line of credit facility, interest rate at period end | 2% | ||||
Debt agency fee rate | 0.50% | ||||
Mortgage notes receivable, description | Further, 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 | ||||
Amortization of financing costs | $ 18,318 | $ 39,583 | |||
Webster Credit Line [Member] | Amended and Restated Credit Agreement [Member] | Mr. Ran [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt guaranteed amount | $ 1,000,000 | ||||
Webster Credit Line [Member] | Secured Overnight Financing Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, interest rate at period end | 8.96% | ||||
Debt agency fee rate | 0.50% |
Senior Secured Notes (Details N
Senior Secured Notes (Details Narrative) - USD ($) | Apr. 25, 2016 | Dec. 31, 2023 | Dec. 31, 2022 |
Short-Term Debt [Line Items] | |||
Secured notes | $ 5,827,931 | $ 5,752,845 | |
Mr. Ran [Member] | |||
Short-Term Debt [Line Items] | |||
Secured notes | 704,000 | ||
Mr. Kao [Member] | |||
Short-Term Debt [Line Items] | |||
Secured notes | $ 288,000 | ||
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, together with MBC Funding’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 plus MBC Funding’s cash on hand is less than 120% of the aggregate outstanding principal balance of the Notes, MBC Funding 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 plus, MBC Funding’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% | ||
Common stock outstanding percentage | 100% | ||
MBC Funding II Corp [Member] | Change of Control [Member] | |||
Short-Term Debt [Line Items] | |||
Debt instrument, redemption price, percentage | 101% | ||
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% | ||
Debt instrument maturity date | Apr. 22, 2026 | ||
Debt instrument principal amount | $ 6,000,000 |
Simple IRA Plan (Details Narrat
Simple IRA Plan (Details Narrative) - IRA Plan [Member] | 12 Months Ended | ||
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Oct. 26, 2000 Integer | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Defined contribution plan, number of employees covered | Integer | 100 | ||
Defined contribution plan, employer matching contribution amount | $ | $ 19,554 | $ 18,985 |
Stockholders_ Equity (Details N
Stockholders’ Equity (Details Narrative) - Shares Buy Back Program [Member] - USD ($) | Dec. 31, 2023 | Apr. 11, 2023 |
Equity, Class of Treasury Stock [Line Items] | ||
Shares repurchased | 54,294 | |
Aggregate cost | $ 262,000 | |
Director [Member] | ||
Equity, Class of Treasury Stock [Line Items] | ||
Shares authorized to be repurchased | 100,000 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details Narrative) - USD ($) | 12 Months Ended | ||
Sep. 09, 2011 | Dec. 31, 2023 | Dec. 31, 2022 | |
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||
Share based compensation | $ 13,065 | $ 13,065 | |
Remaining shares of restricted stock, shares | 1,000,000 | ||
Unrecognized stock-based compensation | $ 34,839 | ||
Chief Executive Officer [Member] | |||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||
Fair value of restricted shares granted, shares | 1,000,000 | ||
Fair value of restricted shares granted | $ 195,968 | ||
Fair value of restricted shares amortization period | 15 years |
Schedule of Future Minimum Leas
Schedule of Future Minimum Lease Payments (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Commitments and Contingencies Disclosure [Abstract] | ||
2024 | $ 61,526 | |
2025 | 60,926 | |
2026 | 60,926 | |
2027 | 55,848 | |
Total minimum lease payments | 239,226 | |
Less: amount representing interest | (18,699) | |
Present Value of Net Minimum Lease Payments | $ 220,527 | $ 273,485 |
Commitments and Contingencies_2
Commitments and Contingencies (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Oct. 27, 2020 | Jun. 30, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Loss Contingencies [Line Items] | ||||
Operating lease term of lease | extend the term of the non-cancelable lease through November 30, 2027 | |||
Operating lease rent, description | the Lease Amendment provides for gradual rent increases from approximately $4,500 per month during the first three years to $5,100 per month during the last year of the extension term, and requires payments for electricity and future escalation increases, as defined. The Company also leases office equipment under a non-cancelable lease expiring in 2024 | |||
Operating lease periodic rent expenses | $ 64,000 | $ 63,000 | ||
Operating lease, remaining lease term | 3 years 10 months 28 days | |||
Operating lease weighted average discount rate percent | 4.15% | |||
Mr. Ran [Member] | ||||
Loss Contingencies [Line Items] | ||||
Annual base salary | $ 350,000 | |||
Officers' compensation | 350,000 | $ 329,231 | ||
Special bonus | 60,000 | |||
Annual bonus | $ 70,000 | |||
Minimum [Member] | ||||
Loss Contingencies [Line Items] | ||||
Officers base salary, minimum | $ 305,000 | |||
Minimum [Member] | First Three Year [Member] | ||||
Loss Contingencies [Line Items] | ||||
Operating lease periodic rent expenses | $ 4,500 | |||
Maximum [Member] | ||||
Loss Contingencies [Line Items] | ||||
Officers base salary, minimum | $ 350,000 | |||
Maximum [Member] | Last Year [Member] | ||||
Loss Contingencies [Line Items] | ||||
Operating lease periodic rent expenses | $ 5,100 |
Subsequent Event (Details Narra
Subsequent Event (Details Narrative) - USD ($) | Nov. 28, 2023 | Dec. 31, 2023 | Dec. 31, 2022 |
Subsequent Events [Abstract] | |||
Cash dividend, per share | $ 0.1125 | ||
Dividend payable value | $ 1,287,073 | $ 1,287,073 | $ 1,436,868 |
Dividends payable, date to be paid | Jan. 16, 2024 | ||
Dividend payable record date | Dec. 29, 2023 |