Korth Direct Mortgage 10-Q 20 Nov 20 2020 Q3 Quarterly report Financial data

Cover

Cover	9 Months Ended
	Sep. 30, 2020shares
Cover [Abstract]
Entity Registrant Name	Korth Direct Mortgage Inc.
Entity Central Index Key	0001695963
Document Type	10-Q
Document Period End Date	Sep. 30, 2020
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity File Number	000-1695962
Entity Incorporation, State or Country Code	FL
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding	5,000,000
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2020

UNAUDITED CONSOLIDATED STATEMEN

UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($)	Sep. 30, 2020	Dec. 31, 2019
ASSETS
Cash and Cash Equivalents	$ 2,750,917	$ 2,378,716
Restricted Cash	13,700,505	1,295,242
Deposits	149,028
Mortgages Owned	125,448,182	85,692,812
Mortgage Servicing Rights, at Fair Value	3,432,430	2,595,946
Portfolio Loans	1,410,265	2,152,835
Accounts Receivable	34,367	62,581
Securities	327,848
ROU Leased Asset	145,333
Goodwill	110,000
Property & Equipment, Net of Depreciation	142,458
Prepaid Expenses	136,874	10,584
TOTAL ASSETS	147,788,207	94,188,716
LIABILITIES
Due to Parent		12,151
Escrows Payable	6,195,406	1,174,747
Due to Investors	259,288	120,496
Due to Clearinghouse Brokers	192,725
Lease liability	145,333
Preferred Dividend Payable	12,500	12,500
Deferred Revenue, net	375,658	289,569
Deferred Tax Liability	535,088	380,236
Accrued Expenses	133,703	66,945
Contingent liability, net	762,962
PPP loan payable	161,600
Mortgage Secured Notes Payable	132,693,992	85,692,812
Accounts Payable	155,608	14,234
Total Liabilities	141,623,863	87,763,690
STOCKHOLDERS' EQUITY
Accumulated Earnings	1,149,458	939,154
Additional Paid-in Capital	5,014,186	5,485,172
Common Stock, $0.0001 par value, 60,000,000 shares authorized 5,000,000 shares issued and outstanding at September 30, 2020 and December 31, 2019	500	500
Series A Preferred Stock, $0.001 par value, 40,000,000 shares authorized, 200,000 shares issued and outstanding at September 30, 2020 and December 31, 2019	200	200
Total Stockholders' Equity	6,164,344	6,425,026
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 147,788,207	$ 94,188,716

UNAUDITED CONSOLIDATED STATEM_2

UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - $ / shares	Sep. 30, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Common stock, par value (in dollar per share)	$ 0.0001	$ 0.0001
Common stock, authorized	60,000,000	60,000,000
Common stock, issued	5,000,000	5,000,000
Common stock, outstanding	5,000,000	5,000,000
Series A Preferred Stock, par value (in dollar per share)	$ 0.001	$ 0.001
Series A Preferred Stock, authorized	40,000,000	40,000,000
Series A Preferred Stock, issued	200,000	200,000
Series A Preferred Stock, outstanding	200,000	200,000

UNAUDITED CONSOLIDATED STATEM_3

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
REVENUES
Total Revenues	$ 1,575,386	$ 300,357
COST OF REVENUES
Broker Underwriting Expense	147,428	63,099
Mortgage Broker Expense	181,904	36,751
Co-Manager Engagement Fee	2,640	1,246
Bank Transaction Fees	10,127	7,410
Appraisal Costs	16,069	3,259
Marketing	42,155	18,520
License and Registration	31,943	7,351
Insurance Review	1,000
Ratings	31,759	13,097
Technology Fees	50,374	4,377
Total Cost of Revenues	515,399	155,110
GROSS PROFIT	1,059,987	145,247
OPERATING EXPENSES
Office Supplies	14,176	2,850
Accounting	56,203	26,000
Salaries	973,355	227,538
Payroll Taxes	54,640	13,462
Other Payroll Related Costs	27,591
Professional & Legal	95,996	52,344
Rent Expense	17,311
Utilities	4,106
Travel & Entertainment	8,342	25,603
Tradeshow Expense	9,199
Business Insurance	31,274
Business Development		2,768
Depreciation	600
Stock Compensation	19,359
Total Expenses	1,312,152	350,565
Net Loss From Operations	(252,165)	(205,318)
Other Income / (Loss)
Unrealized Gain on Mortgages	836,484	1,232,433
Unrealized Loss on Mortgage Security Note	(839)
Interest Expense	(6,963)
Interest Income	3,639
Gain from Forgiveness of EIDL Advance	10,000
Gain from Write-Off Due to Parent		548,802
Total Other Income	842,321	1,781,235
Net income before provision for income taxes	590,156	1,575,917
Provision for income taxes	154,852	169,052
Net Income	435,304	1,406,865
Series A Preferred Dividends	225,000	2,500
Net income attributable to common stockholder	210,304	1,404,365
Origination Revenue [Member]
REVENUES
Total Revenues	299,794	151,357
Servicing Revenue [Member]
REVENUES
Total Revenues	784,955	119,791
Processing Revenue [Member]
REVENUES
Total Revenues	38,919	9,420
Underwriting Income [Member]
REVENUES
Total Revenues	85,685
Trading Profits [Member]
REVENUES
Total Revenues	223,987
Interest Income [Member]
REVENUES
Total Revenues	130,763	790
Commissions [Member]
REVENUES
Total Revenues	2,849
Late Fees [Member]
REVENUES
Total Revenues	$ 8,434	$ 18,999

UNAUDITED CONSOLIDATED STATEM_4

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$ 435,304	$ 1,406,865
Adjustments to Reconcile Net Income to Net Cash Provided by/(Used in) Operating Activities:
Unrealized Gain on Mortgages Owned	(836,484)	(1,232,433)
Unrealized Loss on Mortgage Security Notes	839
Gain from Write-Off of Due to Parent		(548,802)
Gain from forgiveness of EIDL advance	(10,000)
Stock compensation expense	19,359
Depreciation	600
Deferred income taxes	154,852	169,052
Changes in Operating Assets and Liabilities:
Restricted Cash	(12,405,263)	(4,494,631)
Mortgage Secured Notes Issued	47,001,180	32,782,936
Mortgage Secured Notes Purchased	(101,717)
Portfolio Loans	742,570	(460,000)
Accounts Receivable	36,623	(130,000)
Prepaid Expenses	(75,820)
Deposits	(41,717)
Due to Parent	(45,247)	139,175
Deferred Revenue, net	86,089	159,829
Escrow Payable	5,020,659	266,735
Due to Investors	138,792	69,896
Due to clearinghouse brokers	92,805
Interest payable	6,963
Accrued Expenses	(40,965)	30,409
Accounts Payable	76,618
Notes Payable		460,000
New Mortgage Lending	(39,755,370)	(28,624,937)
Total Adjustments	65,366	(1,412,771)
NET CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES	500,670	(5,906)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment	(132,610)
Acquisition of related party affiliate, net of cash acquired	229,141
NET CASH PROVIDED BY INVESTING ACTIVITIES	96,531
CASH FLOWS FROM FINANCING ACTIVITIES
Net Proceeds from issuance of preferred stock		4,750,000
Payment of Series A preferred stock dividends	(225,000)
NET CASH (USED IN)/PROVIDED BY FINANCING ACTIVITIES	(225,000)	4,750,000
NET INCREASE IN CASH AND CASH EQUIVALENTS	372,201	4,744,094
CASH AND CASH EQUIVALENTS - Beginning of Period	2,378,716	15,323
CASH AND CASH EQUIVALENTS - End of Period	$ 2,750,917	$ 4,759,417

UNAUDITED CONSOLIDATED STATEM_5

UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - 9 months ended Sep. 30, 2020 - USD ($)	Series A Preferred Stock [Member]	Common Stock [Member]	Additional Paid in Capital [Member]	Accumulated Earnings [Member]	Total
Balance at beginning at Dec. 31, 2019	$ 200	$ 500	$ 5,485,172	$ 939,154	$ 6,425,026
Balance at beginning (in shares) at Dec. 31, 2019	200,000	5,000,000			5,000,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Options issued to employees and directors			19,359		$ 19,359
Acquisition of related party affiliate (see Note 4)			(490,345)		(490,345)
Series A preferred stock dividends declared				(225,000)	(225,000)
Net income				435,304	435,304
Balance, end at Sep. 30, 2020	$ 200	$ 500	$ 5,014,186	$ 1,149,458	$ 6,164,344
Balance, end (in shares) at Sep. 30, 2020	200,000	5,000,000

NATURE OF BUSINESS

NATURE OF BUSINESS	9 Months Ended
	Sep. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
NATURE OF BUSINESS	NOTE 1 - NATURE OF BUSINESS Korth Direct Mortgage Inc. (the “Company”) is incorporated in the State of Florida. The Company was created to originate mortgages and fund those mortgages with notes secured by mortgage loans. On July 31, 2020, the Company acquired substantially all of the equity of J.W. Korth & Company Limited Partnership, a Michigan limited partnership (“J.W. Korth”), and its general partner, J.W. Korth, LLC, a Florida limited liability company. J.W. Korth is an SEC and FINRA registered securities broker dealer. The financials of J. W. Korth were integrated into the financials of the Company as of August 1, 2020. Certain information and note disclosures normally included in the Company’s annual financial statements prepared in accordance with US generally accepted accounting principles (“GAAP”) have been condensed or omitted. These unaudited financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s 2019 Annual Report on Form 10-K filed with the Securities and Exchange Commission.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2020
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES PRINCIPLES OF CONSOLIDATION The accompanying consolidated financial statements include the accounts of the Company and J.W. Korth, its wholly-owned subsidiary. Intercompany balances and transactions have been eliminated upon consolidation. BASIS OF ACCOUNTING The accompanying financial statements have been prepared on the accrual basis of accounting, in accordance with GAAP. USE OF ESTIMATES The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. CASH AND CASH EQUIVALENTS For purposes of the statement of cash flows, the Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. MORTGAGE VALUATION Mortgages that are current are carried at the principal value owed by the borrower, as of the date of the financial statements, according to the amortization schedule for the loan. All mortgages owned as of the date of these financial statements are current. The net present value of the servicing revenue is recorded as mortgage servicing rights, at fair value on the Statements of Financial Condition, and is recognized on the Statement of Operations as an unrealized gain on mortgages. MORTGAGE SECURED NOTES The Company funds the mortgage loans that it makes by issuing Mortgage Secured Notes (“MSNs”), which are secured by those same mortgages. The deals have been funded in multiple ways, including private placements, SEC registered deals, and 144A offerings. As of the date of these financial statements, the Company has funded loans totaling $125,448,182 and it issued MSNs secured by those loans, in the amount of $132,693,992. There were two loans that were part of a single MSN issuance, where the loans closed after the quarter end, leading to the excess value of MSNs compared to Mortgages Owned of approximately $7,300,000. The loans were completed and funded on October 1 and October 6, 2020. PORTFOLIO LOANS The Company recognizes loans made with its own capital, or those not securitized, under the caption “Portfolio Loans” on the balance sheet. As of September 30, 2020, the Company had issued Portfolio Loans in the amount of $1,410,265. These loans were funded by the Company, as well as affiliates. GOODWILL Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC”) Section 350 requires an annual assessment of the recoverability of goodwill using a two-step process. The first step of the impairment test involves a comparison of the fair value of the reporting unit to its carrying value. If the carrying value is higher than the fair value or there is an indication that impairment may exist, a second step must be performed to compute the amount of the impairment. Management conducted its annual assessment of goodwill impairment and determined that there were no indicators of goodwill impairment and therefore did not record an impairment loss for the period ending September 30, 2020. REVENUE RECOGNITION The Company’s primary sources of revenue are generated from origination fees, servicing fees, processing fees, underwriting income, trading profits, and interest income. Origination Fees Loan origination fees represent revenue earned from originating mortgage loans; net of any credits given to the borrower. Loan origination fees generally represent flat, per-loan fee amounts and are deferred and recognized as revenue over the life of the loan. The associated loan origination costs are also deferred and recognized as expense over the life of the loan. The deferred portion of the loan origination fees is netted against the deferred portion of the loan origination costs, which include mortgage broker expenses, and reported as a net deferred revenue liability on the Company’s Statement of Financial Condition. Servicing Fees Loan servicing fees represent revenue earned for servicing loans for various investors. Loan servicing fees are a percentage of the outstanding unpaid principal balance and represent the difference between the CM Loan interest received and the MSN interest payable. Servicing fees are recognized as revenue as the related mortgage payments are received; similarly, loan servicing expenses are charged to operations as incurred. Processing Fees Processing fees are collected from the borrower at the time the commitment letter is signed and cover a variety of expenses during the underwriting process. If the Company cancels the transaction, then unused fees are refunded. If the transaction is unable to proceed for any reason not the fault of the Company, then the Company keeps the full processing fee. Revenues from processing fees are recognized at closing or at the time a transaction is canceled. Underwriting Income Underwriting income represents revenue earned by J. W. Korth for underwriting and distribution of the Company’s securities. Revenues from underwriting income are recognized on settlement date of the trades. Trading Profits Trading profits represent revenue generated through the trading of securities either for its own account or on behalf of the J. W. Korth’s clients.. Revenue from trading profits are recognized upon settlement of the securities transactions. Interest Income Revenue that falls under this caption is primarily derived from interest earned on Portfolio Loans. Interest earned on cash and securities also falls under this caption. STOCK-BASED COMPENSATION The Company estimates the fair values of share-based payments on the date of grant using a Black-Scholes option pricing model. Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. The Company’s accounting policy is to recognize forfeitures as they occur. The Black-Scholes option pricing model requires assumptions for the expected volatility of the share price of our common stock, the expected dividend yield, and a risk-free interest rate over the expected term of the stock-based award. The assumptions used in calculating the fair value of stock-based awards represent our best estimates, but these estimates involve inherent uncertainties and the application of management judgment. As a result, if factors change and we use different assumptions, our stock-based compensation expense could be materially different in the future. Unrealized Gain on Mortgages Owned The net present value of the servicing income is recognized at the time the mortgage is initiated. This value uses several inputs that are highly subjective including: discount rate, prepayment rate, the current interest rate environment, and default rate assumptions. Since the Company has a short operating history and a small number of loans outstanding, we have a limited basis to predict prepayment rates and default rates. ESTIMATES The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. DUE TO PARENT AND PAYABLES Prior to the acquisition of J.W. Korth on July 31, 2020, items due to parent are operating expenses due to the parent company for salaries, credit cards, and other business expenses. Subsequent to the July 2020 acquisition, intercompany transactions have been eliminated upon consolidation. DEPRECIATION Depreciation is provided on a straight-line basis using estimated useful lives of three to seven years. INCOME TAXES On June 6, 2019, the Company converted from a Florida limited liability company into a Florida corporation. Effective with the conversion into a Florida corporation, income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance on deferred tax assets is established when management considers it is more likely than not that some portion or all of the deferred tax assets will not be realized. Tax benefits from an uncertain tax position are only recognized if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate resolution. Interest and penalties related to unrecognized tax benefits are recorded as incurred as a component of income tax expense.

CORRECTION OF PRIOR PERIOD ACCO

CORRECTION OF PRIOR PERIOD ACCOUNTING ERROR	9 Months Ended
	Sep. 30, 2020
Correction Of Prior Period Accounting Error Abstract
CORRECTION OF PRIOR PERIOD ACCOUNTING ERROR	NOTE 3 - CORRECTION OF PRIOR PERIOD ACCOUNTING ERROR During the preparation of the Company’s 2019 financial statements, the Company identified an accounting error related to the recognition of revenue and expenses associated with loan origination fees and the corresponding loan origination costs. In prior periods, the loan origination fees and the corresponding loan origination costs were recognized as revenue and expense at the time the loans were funded. However, the proper accounting, according to generally accepted accounting principles, is to defer these revenues and expenses at the time of funding and recognize the revenue and expenses over the life of the respective loans. The Company assessed the materiality of the accounting error and determined that the prior period financial statements were not materially misstated as a result of the accounting error. Accordingly, the Company has elected to correct the error in the current year comparative financial statements by adjusting the prior period information presented and disclosing the impact on the prior period’s financial statements within the footnotes of the current period financial statements. The financial statement impacts of the accounting error on the interim periods ended September 30, 2019, are summarized as follows: STATEMENT OF OPERATIONS For the Nine Months ended September 30, 2019: As Previously Prior Period Revised Amounts Revenues: Origination Revenues, net $ 969,275 $ (817,918 ) $ 151,357 Total Revenues 1,118,275 (817,918 ) 300,357 Cost of Revenues: Broker Underwriting Expense 457,275 (394,176 ) 63,099 Mortgage Broker Expense 231,720 (194,969 ) 36,751 Co-Manager Engagement Fee 7,113 (5,867 ) 1,246 Appraisal Costs 1,995 1,264 3,259 Ratings 40,000 (26,903 ) 13,097 Total Cost of Revenues 775,761 (620,651 ) 155,110 Gross Profit (Loss) 342,514 (197,267 ) 145,247 Operating Expenses: Professional and Legal 64,843 (12,499 ) 52,344 Total Operating Expenses 363,064 (12,499 ) 350,565 Net Loss from Operations (20,550 ) (184,768 ) (205,318 ) Total Other Income 1,781,235 - 1,781,235 Net Income before Provision for Income Taxes 1,760,685 (184,768 ) 1,575,917 Provision for Income Taxes (3,785 ) (165,267 ) (169,052 ) Net Income $ 1,756,900 $ (350,035 ) $ 1,406,865

ACQUISITION OF RELATED PARTY AF

ACQUISITION OF RELATED PARTY AFFILIATE	9 Months Ended
	Sep. 30, 2020
Business Combinations [Abstract]
ACQUISITION OF RELATED PARTY AFFILIATE	NOTE 4 – ACQUISITION OF RELATED PARTY AFFILIATE On July 31, 2020, the Company acquired substantially all of the equity of J.W. Korth, a Michigan limited partnership, and its general partner, J.W. Korth, LLC, a Florida limited liability company. The Company’s acquisitions of J.W. Korth and J.W. Korth, LLC are together referred to as the “Acquisitions.” The Company was founded by J.W. Korth with James W. Korth, its Chairman and Chief Executive Officer, and his daughter, Holly MacDonald-Korth, the Company’s President and Chief Financial Officer. Mr. Korth is the Managing Partner of J.W. Korth and Ms. MacDonald-Korth is J.W. Korth’s Managing Director and Chief Financial Officer. J.W. Korth is registered with the Securities and Exchange Commission as a broker-dealer and investment advisor, and with the Financial Industry Regulatory Authority (“FINRA”) as a broker-dealer. Together, prior to closing of the Acquisitions Mr. Korth and Ms. MacDonald-Korth together owned approximately 80% of J.W. Korth’s partnership interests and controlled the business and operations of J.W. Korth. J.W. Korth funded the organization and operation of the Company pursuant to a support agreement with the Company from inception until April 2019, at which time the Company became self-sustaining and J.W. Korth forgave a receivable owed to it by the Company. Until the closing of the Acquisitions, the Company was controlled by J.W. Korth, which owned all of its voting common stock. The Company originates, funds and services loans which it makes to commercial borrowers. The loans are held by the Company as lender. The Company funds its loans directly in the capital markets through issuance of Mortgage Secured Notes (“MSNs” or “Notes”), which are sold through J.W. Korth as underwriter through exemptions from registration available under Rule 144A, Regulation D, and other exemptions from registration. The Company and J.W. Korth determined that the Company could operate more efficiently if J.W. Korth became a wholly-owned subsidiary of the Company. J.W. Korth submitted its then-proposed sale to FINRA, as required by FINRA rules, and FINRA advised J.W. Korth that it could proceed with the closing. Pursuant to the Purchase Agreement, as a condition of closing J.W. Korth agreed to distribute all of its 5,000,000 shares of common stock in the Company to its partners ratably in accordance with their partnership interests in J.W. Korth pursuant to exemptions from registration available under Section 4(a)(2) of the Securities Act of 1933, as amended, and Rule 506 promulgated under the Securities Act. Prior to the closing, J. W. Korth LLC owned 73.6% of the Common Capital interest of J W Korth and at closing received 3,680,000 shares of the Company. Simultaneously J W Korth LLC distributed the Company shares it received from J.W. Korth to its members James Korth and Holly MacDonald-Korth according to their membership interests which were 80% and 20% respectively. At closing, after the distribution to its members of the Company shares distributed to J W Korth LLC, the Company acquired all of the membership interests in JW Korth LLC from Mr. Korth and Ms. MacDonald-Korth for consideration of the payment to (i) the Preferred Capital Interest partners of J.W. Korth of accrued and unpaid 6% dividends through July 31, 2020, and (ii) James Korth of $150,000 in payment of the value of his JW Korth LLC’s Common Capital Interest account. As post-closing commitments the Company agreed to (i) retain Mr. Korth as the managing partner of J.W. Korth, Ms. MacDonald-Korth as J.W. Korth’s chief financial officer, and all other employees of JW Korth who were employed at closing of the Transactions; (ii) operate J.W. Korth as an SEC registered broker-dealer and investment advisor; (iii) pay the JW Korth Preferred Capital Interest Partners quarterly dividends concurrently with its payment of the Company’s Series A Preferred Stock dividends at least annually; (iv) in such years as it pays Series A Preferred dividends, redeem 25% annually of the JW Korth Preferred Capital Interest partners through a capital contribution to JW Korth; and (v) make a discretionary redemption of all accounts of the limited partners of J.W. Korth under the J.W. Korth partnership agreement. Upon redemption of the limited partners’ accounts and the payment of the other consideration to described above to the JW Korth partners, KDM will own 100% of the voting interests in JW Korth. The following table summarizes the consideration paid, or to be paid, for the Acquisitions: Consideration Accrued & unpaid dividends to the Preferred Capital Interest partners $ 213,443 JW Korth LLC’s Common Capital Interest account 150,000 Contingent liability to redeem J.W. Korth Preferred Capital Interest Partners 696,253 Disposition of outstanding loan due from J.W. Korth Executive Officer 69,780 Total Consideration Paid $ 1,129,476 The following table summarizes the net book value of assets and liabilities acquired as of the closing date, July 31, 2020: Net Book Value J.W. Korth Net Book Value $ 889,131 Less: Preferred Interest in J.W. Korth by Company prior to acquisition (250,000 ) Adjusted Net Book Value acquired $ 639,131 Since the acquisition was between related parties, the transaction was recorded at net book value as of the closing date. The difference of $490,345 between the consideration paid and the net book value of the assets and liabilities acquired was recorded as an offset to equity, specifically to Additional Paid-in Capital. Disclosure of supplemental pro forma information for revenue and earnings related to the acquisition, assuming the acquisition was made at the beginning of the earliest period presented, has not been disclosed since the effects of the acquisition would not have been material to the results of operation for the periods presented.

RESTRICTED CASH

RESTRICTED CASH	9 Months Ended
	Sep. 30, 2020
Restricted Cash [Abstract]
RESTRICTED CASH	NOTE 5 - RESTRICTED CASH The Company maintains multiple segregated accounts in trust for borrowers and investors. The value of these accounts is carried under the asset “Restricted Cash.” The “In Trust for 1” account holds the monthly tax and insurance payments collected from borrowers and distributes payments annually, on behalf of borrowers, to the appropriate tax authority and insurance companies. This account corresponds to the Escrow Payable liability. As of September 30, 2020, this account has a balance of $5,932,065. The “In Trust for 2” account receives payments from borrowers, distributes payments to investors, and pays the servicing fee to the Company. This account corresponds to the Due to Investors liability. As of September 30, 2020, this account has a balance of $7,505,098 (commitment fees/accrued interest), which includes a balance of $7,505,098 pending closing of two loans. We also maintain multiple lockbox accounts that collect rental payments directly from tenants on the borrowers’ behalf. These accounts typically net out funds monthly. The lockbox account balances as of September 30, 2020, the accounts have a balance of $263,341.

COMMITMENTS

COMMITMENTS	9 Months Ended
	Sep. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS	NOTE 6 - COMMITMENTS Prior to the acquisition, the Company relied entirely on its parent, J.W. Korth, to provide office space, internet connectivity, phone service, and incidentals through mid-2019. The acquired Partnership leases office space in Miami, Florida and Lansing, Michigan under operating leases that expire at various times in 2021. The following is a schedule of future minimum rental payments required under the terms of the leases as September 30, 2020: 2020 24,883 2021 27,561 $ 52,444 Rental expense for the period ended September 30, 2020 is $17,311, which includes additional expenses for common area, direct operating expenses, utilities, parking and taxes. As of September 30, 2020, the present value using the discount rate of 4.24% of our lease is: 2020 12,013 2021 48,052 $ 60,065 The Company is currently negotiating a lease for new office space, which it expects to move into in the fourth quarter of 2020.

INDEMNIFICATIONS

INDEMNIFICATIONS	9 Months Ended
	Sep. 30, 2020
Indemnifications
INDEMNIFICATIONS	NOTE 7 - INDEMNIFICATIONS The Company provides representations and warranties to counterparties in connection with a variety of commercial transactions and occasionally indemnifies them against potential losses caused by the breach of those representations and warranties. These indemnifications generally are standard contractual terms and are entered into in the normal course of business. The maximum potential amount of future payments that the Company could be required to make under these indemnifications cannot be estimated. However, the Company believes that it is unlikely it will have to make material payments under these arrangements and has not recorded any contingent liability in the financial statements for these indemnifications.

CUSTOMERS

CUSTOMERS	9 Months Ended
	Sep. 30, 2020
Risks and Uncertainties [Abstract]
CUSTOMERS	NOTE 8 - CUSTOMERS As of September 30, 2020, the Company had twenty five customers. The Company defines customers as borrowers that have an active loan with the Company, or are in the midst of the underwriting process and have a commitment fee on deposit with the Company. Further, we have a concentration of customers where one borrower accounts for 37% of our total loans outstanding with two loans adding up to $46.34 million. Currently, approximately 41% of the loans, by unpaid balance, are geographically concentrated in the state of Ohio.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	9 Months Ended
	Sep. 30, 2020
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 9 – RELATED PARTY TRANSACTIONS Prior to the acquisition of J.W. Korth in July 2020, the Due to Parent account was used to account for bills and expenses paid by J. W. Korth on behalf of the Company. The Company was largely supported by its parent company, J. W. Korth, from inception through late 2019. The Company owed J. W. Korth $548,802 on March 30, 2019; however, this debt was forgiven as of March 31, 2019, pursuant to an agreement dated May 1, 2019, between J. W. Korth and the Company. The cancellation of this liability resulted in a one-time gain, which is included on the Unaudited Statements of Operations for the nine months ended September 30, 2019. As of September 30, 2020, the intercompany transactions and balances between the Company and J.W. Korth have been eliminated upon consolidation as a result of the acquisition. On May 13, 2020, the Company executed a preferred partner subscription agreement with J. W. Korth in the amount of $250,000, which was eliminated upon consolidation as a result of the acquisition of J.W. Korth in July 2020 (see Note 4 above). Prior to the acquisition of J.W. Korth in July 2020, the Company paid underwriting fees of $158,138 in 2020. J. W. Korth has been the initial purchaser of all the mortgage secured notes for the nine months ended September 30, 2020. In March 2020, the Company purchased an MSN in the amount of $100,000 included on the statement of financial condition as Securities. On April 1, 2020, the Company closed a first lien and corresponding MSN, along with a second lien loan of $500,000 on the same property. The funding for the second lien was provided by 110 Capital LLC, an entity controlled by a KDM director and employee. KDM services both notes.

DEFERRED REVENUE, NET

DEFERRED REVENUE, NET	9 Months Ended
	Sep. 30, 2020
Deferred Revenue [Abstract]
DEFERRED REVENUE, NET	NOTE 10 – DEFERRED REVENUE, NET Loan origination fees are deferred and recognized as revenue over the life of the respective loan. The associated loan origination costs are also deferred and recognized as expense over the life of the loan. The deferred portion of the loan origination fees is netted against the deferred portion of the loan origination costs and reported as a net deferred revenue liability on the Company’s Statement of Financial Condition. The following is a summary of the loan originating fees and costs deferred and amortized for the nine months ended September 30, 2020: Deferred Origination Fees Deferred Origination Costs Deferred Deferred Revenue at December 31, 2019 $ 1,849,100 $ (1,559,531 ) $ 289,569 New loan deferrals 643,072 (503,194 ) 139,878 Amortization of deferrals (299,794 ) 246,005 (53,789 ) Deferred Revenue at September 30, 2020 2,192,378 (1,816,720 ) 375,658

EMPLOYEE AND DIRECTOR STOCK OPT

EMPLOYEE AND DIRECTOR STOCK OPTIONS	9 Months Ended
	Sep. 30, 2020
Share-based Payment Arrangement [Abstract]
EMPLOYEE AND DIRECTOR STOCK OPTIONS	NOTE 11 – EMPLOYEE AND DIRECTOR STOCK OPTIONS On June 28, 2019, the Company’s Board of Directors adopted the 2019 Stock Option Plan (the “Incentive Plan”). The Incentive Plan provides for the grant of both incentive and non-statutory stock options to key employees, directors or other persons having a service relationship with the Company for the purchase of up to an aggregate of 1,000,000 shares of the Company’s unissued, or reacquired, common stock, $0.001 par value. The Plan will be administered by the Board of Directors or a committee appointed by the Board. In June 2019, the Company issued options to purchase 835,000 shares of the Company’s common stock at an exercise price of $1.00 per share. The weighted-average grant date fair values of options granted was $0.1855 per share. The fair values of the stock-based awards granted were calculated with the following weighted-average assumptions: 2019 Risk-free interest rate: 1.76% Expected term: 5.75 years Expected dividend yield: 0% Expected volatility: 35.01% For the nine months ended September 30, 2020, the Company recorded $19,359 of stock-based compensation expense. As of September 30, 2020, there was $45,178 in total unrecognized compensation expense related to non-vested employee stock options granted under the Incentive Plan, which is expected to be recognized over 1.75 years. Stock option activity for the nine months ended September 30, 2020, is summarized as follows: 2019 Stock Option Plan: Shares Weighted Weighted Options outstanding at January 1, 2020 835,000 $ 1.00 9.5 Granted - Exercised - Expired or forfeited - Options outstanding at September 30, 2020 835,000 $ 1.00 9.0 Options exercisable at September 30, 2020 417,500 $ 1.00 9.0 Options expected to vest at September 30, 2020 417,500 $ 1.00 9.0

PREFERRED EQUITY

PREFERRED EQUITY	9 Months Ended
	Sep. 30, 2020
Equity [Abstract]
PREFERRED EQUITY	NOTE 12 – PREFERRED EQUITY On September 27, 2019, the Company issued 200,000 shares of its Series A 6% Cumulative Perpetual Convertible Preferred Stock for net proceeds of $4,750,000. The Company paid $250,000 in expenses related to the preferred stock issuance to J. W. Korth as underwriter and distributor. Each share was sold for $25, and is convertible into common stock at a ratio of 5 shares of common stock for each share of Series A Preferred Stock.

FAIR VALUE

FAIR VALUE	9 Months Ended
	Sep. 30, 2020
Fair Value Disclosures [Abstract]
FAIR VALUE	NOTE 13 – FAIR VALUE FASB ASC 820, Fair Value Measurements and Disclosures ASC 820 establishes a hierarchy of valuation techniques based on the observability of inputs utilized in measuring financial assets and liabilities at fair value. GAAP establishes market-based or observable inputs as the preferred source of values, followed by valuation models using management assumptions in the absence of market inputs. The three levels of the hierarchy are described below: Level I Level II Level III ASC 820 requires the use of observable market data, when available, in making fair value measurements. When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurements. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. Valuation Process Cash and cash equivalents: The carrying amounts of cash and short-term instruments approximate fair values and are classified as Level 1. Mortgages Owned and Mortgage Secured Notes Payable: Mortgage loans for which the Company has the intention and ability to hold for the foreseeable future, or until maturity or payoff, are reported at their outstanding principal balances, net of any unearned income, premiums or discounts. If a decline in fair value below the carrying balance is other-than-temporary, an unrealized impairment loss is recorded and the loan is recorded at the lower fair value at each reporting period. To-date, the Company has not recorded any impairment losses related to the mortgage loans. Due to the fact that the Company issues notes secured directly by underlying loans, our assets and liabilities in this category have identical values and assets have offsetting balances. Mortgage Servicing: The net present value of the servicing income is recognized at the time the mortgage is initiated as an unrealized gain. This value uses several inputs that are highly subjective including: discount rate, constant prepayment rate, the current interest rate environment, and default rate assumptions. Since the Company has limited operating history and a small amount of loans outstanding, we have a limited basis to predict prepayment rates and default rates, but have engaged a third party, MIAC Analytics, to assist us in our valuation of this asset. The amount is included on the Unaudited Statement of Financial Condition as “Mortgage Servicing Rights, at Fair Value.” Mortgage Secured Notes Receivable: From time to time the Company may buy-back mortgage secured notes previously issued to investors. These securities are available for sale, but may be held until maturity. These securities are recorded at fair value each quarter with the change in fair value recognized as an unrealized gain or loss each reporting period. The fair value estimate uses several inputs that are highly subjective including: discount rate, constant prepayment rate, the current interest rate environment, and default rate assumptions. Since the Company has limited operating history and a small amount of loans outstanding, we have a limited basis to predict prepayment rates and default rates, but have engaged a third party, MIAC Analytics, to assist us in our valuation of this asset. Fair Value Disclosure The following tables display the Company’s assets and liabilities measured at fair value on a recurring basis: September 30, 2020 Total Level I Level II Level III Financial Assets Mortgages Owned $ 125,448,182 $ - $ 125,448,182 $ - Mortgage Servicing $ 3,432,430 $ - $ - $ 3,432,430 Securities 327,848 - - 327,848 Total Financial Assets $ 129,208,460 $ - $ 125,448,182 $ 3,760,278 Financial Liabilities Mortgage Secured Notes Payable $ 132,693,992 $ - $ 132,693,992 $ - December 31, 2019 Financial Assets Mortgages Owned $ 85,692,812 $ - $ 85,692,812 $ - Mortgage Servicing 2,595,946 - - 2,595,946 Total Financial Assets $ 88,288,758 $ - $ 85,692,812 $ 2,595,946 Financial Liabilities Mortgage Secured Notes Payable $ 85,692,812 $ - $ 85,692,812 $ - Fair Value Measurements Changes in Fair Value Measurements for the nine months ended September30, 2020 The following table presents a reconciliation of changes in Level 3 assets and liabilities reported in the Statements of Financial Condition for the nine months ended September 30, 2020: Changes in assets: Period ended September 30, 2020 Mortgage Servicing Value Securities Total Value Beginning balance at January 1, 2020 $ 2,595,946 $ - $ 2,595,946 Purchases - 100,000 100,000 Trades - 225,041 225,041 Sales - - - Issues - - - Settlements - - - Net realized gain/loss or Interest income - 3,646 3,646 Unrealized Gain from newly issued mortgages 1,168,632 - 1,168,632 Fair Value adjustment (332,148 ) (839 ) (332,987 ) Transfers into Level 3 - - - Transfers out of Level 3 - - - Ending balance at September 30, 2020 $ 3,432,430 $ 327,848 $ 3,760,278 The Company’s policy for recording transfers between levels of the fair value hierarchy is to recognize as of the financial statement date. For the nine months ended September 30, 2020, there were no transfers between levels. The Company has established valuation processes and policies for its Level 3 investments to ensure that the methods used are fair and consistent in accordance with ASC 820 – Fair Value Measurements and Disclosures The following table presents quantitative information regarding the significant unobservable inputs the Company uses to determine the fair value of Level 3 investments held as of September 30, 2020: Investment type Fair Value Valuation technique Unobservable inputs Values Mortgage servicing $ 3,432,430 Net Present Value Prepayment Discount 15.55 % Discount rate 15.00 % Securities $ 327,848 Net Present Value

INCOME TAXES

INCOME TAXES	9 Months Ended
	Sep. 30, 2020
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 14 – INCOME TAXES The provision for income taxes was $154,852 for the nine months ended September 30, 2020. The effective tax rate was 26.2% of the income before income taxes of $590,156, which differs from the federal statutory rate of 21% due to the effect of state income taxes and certain of the Company’s expenses that are not deductible for tax purposes. The provision for income taxes was $169,052 for the nine months ended September 30, 2019. The effective tax rate was 10.7% of the income before income taxes of $1,575,917, which differs from the federal statutory rate of 21% due to the effect of income attributed to the LLC partnership prior to June 2019, state income taxes and certain of the Company’s expenses that are not deductible for tax purposes.

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	9 Months Ended
	Sep. 30, 2020
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	NOTE 15 – PROPERTY AND EQUIPMENT Property and Equipment are summarized as follows: Equipment $ 52,741 Furniture and fixures $ 158,017 $ 210,758 Accumulated depreciation $ (68,300 ) Net Property Equipment $ 142,458 Depreciation expense for the period ending September 30, 2020 was $600. For the new furniture and equipment bought for the Company post acquisition, in August and September 2020, no depreciation has been charged.

DUE TO CLEARINGHOUSE BROKERS

DUE TO CLEARINGHOUSE BROKERS	9 Months Ended
	Sep. 30, 2020
Brokers and Dealers [Abstract]
DUE TO CLEARINGHOUSE BROKERS	NOTE 16 – DUE TO CLEARINGHOUSE BROKERS J.W. Korth, the Company’s wholly-owned subsidiary, operates as an SEC and FINRA registered securities broker dealer. The securities transactions are traded through broker clearinghouses and, upon settlement, funds are transferred in and out of the Company’s bank accounts. Unsettled transactions create short-term payables and receivables due to and from the broker clearinghouses. As of September 30, 2020, the Company had a net amount due to the clearinghouse brokers of $192,725.

CONTINGENT LIABILITY

CONTINGENT LIABILITY	9 Months Ended
	Sep. 30, 2020
Business Combinations [Abstract]
CONTINGENT LIABILITY	The following table summarizes the consideration paid, or to be paid, for the Acquisitions: Consideration Accrued & unpaid dividends to the Preferred Capital Interest partners $ 213,443 JW Korth LLC’s Common Capital Interest account 150,000 Contingent liability to redeem J.W. Korth Preferred Capital Interest Partners 696,253 Disposition of outstanding loan due from J.W. Korth Executive Officer 69,780 Total Consideration Paid $ 1,129,476

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2020
Accounting Policies [Abstract]
PRINCIPLES OF CONSOLIDATION	PRINCIPLES OF CONSOLIDATION The accompanying consolidated financial statements include the accounts of the Company and J.W. Korth, its wholly-owned subsidiary. Intercompany balances and transactions have been eliminated upon consolidation.
BASIS OF ACCOUNTING	BASIS OF ACCOUNTING The accompanying financial statements have been prepared on the accrual basis of accounting, in accordance with GAAP.
USE OF ESTIMATES	USE OF ESTIMATES The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
CASH AND CASH EQUIVALENTS	CASH AND CASH EQUIVALENTS For purposes of the statement of cash flows, the Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents.
MORTGAGE VALUATION	MORTGAGE VALUATION Mortgages that are current are carried at the principal value owed by the borrower, as of the date of the financial statements, according to the amortization schedule for the loan. All mortgages owned as of the date of these financial statements are current. The net present value of the servicing revenue is recorded as mortgage servicing rights, at fair value on the Statements of Financial Condition, and is recognized on the Statement of Operations as an unrealized gain on mortgages.
MORTGAGE SECURED NOTES	MORTGAGE SECURED NOTES The Company funds the mortgage loans that it makes by issuing Mortgage Secured Notes (“MSNs”), which are secured by those same mortgages. The deals have been funded in multiple ways, including private placements, SEC registered deals, and 144A offerings. As of the date of these financial statements, the Company has funded loans totaling $125,448,182 and it issued MSNs secured by those loans, in the amount of $132,693,992. There were two loans that were part of a single MSN issuance, where the loans closed after the quarter end, leading to the excess value of MSNs compared to Mortgages Owned of approximately $7,300,000. The loans were completed and funded on October 1 and October 6, 2020.
PORTFOLIO LOANS	PORTFOLIO LOANS The Company recognizes loans made with its own capital, or those not securitized, under the caption “Portfolio Loans” on the balance sheet. As of September 30, 2020, the Company had issued Portfolio Loans in the amount of $1,410,265. These loans were funded by the Company, as well as affiliates.
GOODWILL	GOODWILL Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC”) Section 350 requires an annual assessment of the recoverability of goodwill using a two-step process. The first step of the impairment test involves a comparison of the fair value of the reporting unit to its carrying value. If the carrying value is higher than the fair value or there is an indication that impairment may exist, a second step must be performed to compute the amount of the impairment. Management conducted its annual assessment of goodwill impairment and determined that there were no indicators of goodwill impairment and therefore did not record an impairment loss for the period ending September 30, 2020.
REVENUE RECOGNITION	REVENUE RECOGNITION The Company’s primary sources of revenue are generated from origination fees, servicing fees, processing fees, underwriting income, trading profits, and interest income. Origination Fees Loan origination fees represent revenue earned from originating mortgage loans; net of any credits given to the borrower. Loan origination fees generally represent flat, per-loan fee amounts and are deferred and recognized as revenue over the life of the loan. The associated loan origination costs are also deferred and recognized as expense over the life of the loan. The deferred portion of the loan origination fees is netted against the deferred portion of the loan origination costs, which include mortgage broker expenses, and reported as a net deferred revenue liability on the Company’s Statement of Financial Condition. Servicing Fees Loan servicing fees represent revenue earned for servicing loans for various investors. Loan servicing fees are a percentage of the outstanding unpaid principal balance and represent the difference between the CM Loan interest received and the MSN interest payable. Servicing fees are recognized as revenue as the related mortgage payments are received; similarly, loan servicing expenses are charged to operations as incurred. Processing Fees Processing fees are collected from the borrower at the time the commitment letter is signed and cover a variety of expenses during the underwriting process. If the Company cancels the transaction, then unused fees are refunded. If the transaction is unable to proceed for any reason not the fault of the Company, then the Company keeps the full processing fee. Revenues from processing fees are recognized at closing or at the time a transaction is canceled. Underwriting Income Underwriting income represents revenue earned by J. W. Korth for underwriting and distribution of the Company’s securities. Revenues from underwriting income are recognized on settlement date of the trades. Trading Profits Trading profits represent revenue generated through the trading of securities either for its own account or on behalf of the J. W. Korth’s clients.. Revenue from trading profits are recognized upon settlement of the securities transactions. Interest Income Revenue that falls under this caption is primarily derived from interest earned on Portfolio Loans. Interest earned on cash and securities also falls under this caption.
STOCK-BASED COMPENSATION	STOCK-BASED COMPENSATION The Company estimates the fair values of share-based payments on the date of grant using a Black-Scholes option pricing model. Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. The Company’s accounting policy is to recognize forfeitures as they occur. The Black-Scholes option pricing model requires assumptions for the expected volatility of the share price of our common stock, the expected dividend yield, and a risk-free interest rate over the expected term of the stock-based award. The assumptions used in calculating the fair value of stock-based awards represent our best estimates, but these estimates involve inherent uncertainties and the application of management judgment. As a result, if factors change and we use different assumptions, our stock-based compensation expense could be materially different in the future.
UNREALIZED GAIN ON MORTGAGES OWNED	Unrealized Gain on Mortgages Owned The net present value of the servicing income is recognized at the time the mortgage is initiated. This value uses several inputs that are highly subjective including: discount rate, prepayment rate, the current interest rate environment, and default rate assumptions. Since the Company has a short operating history and a small number of loans outstanding, we have a limited basis to predict prepayment rates and default rates.
ESTIMATES	ESTIMATES The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
DUE TO PARENT AND PAYABLES	DUE TO PARENT AND PAYABLES Prior to the acquisition of J.W. Korth on July 31, 2020, items due to parent are operating expenses due to the parent company for salaries, credit cards, and other business expenses. Subsequent to the July 2020 acquisition, intercompany transactions have been eliminated upon consolidation.
DEPRECIATION	DEPRECIATION Depreciation is provided on a straight-line basis using estimated useful lives of three to seven years.
INCOME TAXES	INCOME TAXES On June 6, 2019, the Company converted from a Florida limited liability company into a Florida corporation. Effective with the conversion into a Florida corporation, income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance on deferred tax assets is established when management considers it is more likely than not that some portion or all of the deferred tax assets will not be realized. Tax benefits from an uncertain tax position are only recognized if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate resolution. Interest and penalties related to unrecognized tax benefits are recorded as incurred as a component of income tax expense.

CORRECTION OF PRIOR PERIOD AC_2

CORRECTION OF PRIOR PERIOD ACCOUNTING ERROR (Tables)	9 Months Ended
	Sep. 30, 2020
Correction Of Prior Period Accounting Error Abstract
Schedule of financial statements	The financial statement impacts of the accounting error on the interim periods ended September 30, 2019, are summarized as follows: STATEMENT OF OPERATIONS For the Nine Months ended September 30, 2019: As Previously Prior Period Revised Amounts Revenues: Origination Revenues, net $ 969,275 $ (817,918 ) $ 151,357 Total Revenues 1,118,275 (817,918 ) 300,357 Cost of Revenues: Broker Underwriting Expense 457,275 (394,176 ) 63,099 Mortgage Broker Expense 231,720 (194,969 ) 36,751 Co-Manager Engagement Fee 7,113 (5,867 ) 1,246 Appraisal Costs 1,995 1,264 3,259 Ratings 40,000 (26,903 ) 13,097 Total Cost of Revenues 775,761 (620,651 ) 155,110 Gross Profit (Loss) 342,514 (197,267 ) 145,247 Operating Expenses: Professional and Legal 64,843 (12,499 ) 52,344 Total Operating Expenses 363,064 (12,499 ) 350,565 Net Loss from Operations (20,550 ) (184,768 ) (205,318 ) Total Other Income 1,781,235 - 1,781,235 Net Income before Provision for Income Taxes 1,760,685 (184,768 ) 1,575,917 Provision for Income Taxes (3,785 ) (165,267 ) (169,052 ) Net Income $ 1,756,900 $ (350,035 ) $ 1,406,865

ACQUISITION OF RELATED PARTY _2

ACQUISITION OF RELATED PARTY AFFILIATE (Tables)	9 Months Ended
	Sep. 30, 2020
Business Combinations [Abstract]
Schedule of consideration paid for the Acquisitions	The following table summarizes the consideration paid, or to be paid, for the Acquisitions: Consideration Accrued & unpaid dividends to the Preferred Capital Interest partners $ 213,443 JW Korth LLC’s Common Capital Interest account 150,000 Contingent liability to redeem J.W. Korth Preferred Capital Interest Partners 696,253 Disposition of outstanding loan due from J.W. Korth Executive Officer 69,780 Total Consideration Paid $ 1,129,476
Schedule of net book value of assets and liabilities acquired as of the closing date	The following table summarizes the net book value of assets and liabilities acquired as of the closing date, July 31, 2020: Net Book Value J.W. Korth Net Book Value $ 889,131 Less: Preferred Interest in J.W. Korth by Company prior to acquisition (250,000 ) Adjusted Net Book Value acquired $ 639,131

COMMITMENTS (Tables)

COMMITMENTS (Tables)	9 Months Ended
	Sep. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Schedule of future minimum rental payments	The following is a schedule of future minimum rental payments required under the terms of the leases as September 30, 2020: 2020 24,883 2021 27,561 $ 52,444
Schedule of future minimum rental payments present value using the discount rate	As of September 30, 2020, the present value using the discount rate of 4.24% of our lease is: 2020 12,013 2021 48,052 $ 60,065

DEFERRED REVENUE, NET (Tables)

DEFERRED REVENUE, NET (Tables)	9 Months Ended
	Sep. 30, 2020
Deferred Revenue [Abstract]
Schedule of loan originating fees and costs deferred and amortized	The following is a summary of the loan originating fees and costs deferred and amortized for the nine months ended September 30, 2020: Deferred Origination Fees Deferred Origination Costs Deferred Deferred Revenue at December 31, 2019 $ 1,849,100 $ (1,559,531 ) $ 289,569 New loan deferrals 643,072 (503,194 ) 139,878 Amortization of deferrals (299,794 ) 246,005 (53,789 ) Deferred Revenue at September 30, 2020 2,192,378 (1,816,720 ) 375,658

EMPLOYEE AND DIRECTOR STOCK O_2

EMPLOYEE AND DIRECTOR STOCK OPTIONS (Tables)	9 Months Ended
	Sep. 30, 2020
Share-based Payment Arrangement [Abstract]
Schedule of estimated fair value of stock options weighted-average assumptions	The fair values of the stock-based awards granted were calculated with the following weighted-average assumptions: 2019 Risk-free interest rate: 1.76% Expected term: 5.75 years Expected dividend yield: 0% Expected volatility: 35.01%
Schedule of stock option activity	Stock option activity for the nine months ended September 30, 2020, is summarized as follows: 2019 Stock Option Plan: Shares Weighted Weighted Options outstanding at January 1, 2020 835,000 $ 1.00 9.5 Granted - Exercised - Expired or forfeited - Options outstanding at September 30, 2020 835,000 $ 1.00 9.0 Options exercisable at September 30, 2020 417,500 $ 1.00 9.0 Options expected to vest at September 30, 2020 417,500 $ 1.00 9.0

FAIR VALUE (Tables)

FAIR VALUE (Tables)	9 Months Ended
	Sep. 30, 2020
Fair Value Disclosures [Abstract]
Schedule of assets and liabilities measured at fair value	The following tables display the Company’s assets and liabilities measured at fair value on a recurring basis: September 30, 2020 Total Level I Level II Level III Financial Assets Mortgages Owned $ 125,448,182 $ - $ 125,448,182 $ - Mortgage Servicing $ 3,432,430 $ - $ - $ 3,432,430 Securities 327,848 - - 327,848 Total Financial Assets $ 129,208,460 $ - $ 125,448,182 $ 3,760,278 Financial Liabilities Mortgage Secured Notes Payable $ 132,693,992 $ - $ 132,693,992 $ - December 31, 2019 Financial Assets Mortgages Owned $ 85,692,812 $ - $ 85,692,812 $ - Mortgage Servicing 2,595,946 - - 2,595,946 Total Financial Assets $ 88,288,758 $ - $ 85,692,812 $ 2,595,946 Financial Liabilities Mortgage Secured Notes Payable $ 85,692,812 $ - $ 85,692,812 $ -
Schedule of fair value measurements	The following table presents a reconciliation of changes in Level 3 assets and liabilities reported in the Statements of Financial Condition for the nine months ended September 30, 2020: Changes in assets: Period ended September 30, 2020 Mortgage Servicing Value Securities Total Value Beginning balance at January 1, 2020 $ 2,595,946 $ - $ 2,595,946 Purchases - 100,000 100,000 Trades - 225,041 225,041 Sales - - - Issues - - - Settlements - - - Net realized gain/loss or Interest income - 3,646 3,646 Unrealized Gain from newly issued mortgages 1,168,632 - 1,168,632 Fair Value adjustment (332,148 ) (839 ) (332,987 ) Transfers into Level 3 - - - Transfers out of Level 3 - - - Ending balance at September 30, 2020 $ 3,432,430 $ 327,848 $ 3,760,278
Schedule of quantitative information	The following table presents quantitative information regarding the significant unobservable inputs the Company uses to determine the fair value of Level 3 investments held as of September 30, 2020: Investment type Fair Value Valuation technique Unobservable inputs Values Mortgage servicing $ 3,432,430 Net Present Value Prepayment Discount 15.55 % Discount rate 15.00 % Securities $ 327,848 Net Present Value

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	9 Months Ended
	Sep. 30, 2020
Property, Plant and Equipment [Abstract]
Schedule of property and equipment	Property and Equipment are summarized as follows: Equipment $ 52,741 Furniture and fixures $ 158,017 $ 210,758 Accumulated depreciation $ (68,300 ) Net Property Equipment $ 142,458

CONTINGENT LIABILITY (Tables)

CONTINGENT LIABILITY (Tables)	9 Months Ended
	Sep. 30, 2020
Business Combinations [Abstract]
Schedule of unpaid contingent liability outstanding	The following table summarizes the consideration paid, or to be paid, for the Acquisitions: Consideration Accrued & unpaid dividends to the Preferred Capital Interest partners $ 213,443 JW Korth LLC’s Common Capital Interest account 150,000 Contingent liability to redeem J.W. Korth Preferred Capital Interest Partners 696,253 Disposition of outstanding loan due from J.W. Korth Executive Officer 69,780 Total Consideration Paid $ 1,129,476

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Portfolio Loans	$ 1,410,265	$ 2,152,835
Minimum [Member]
Estimated useful lives	3 years
Maximum [Member]
Estimated useful lives	7 years
Actual Basis [Member]
Mortgage secured notes funded	$ 125,448,182
Mortgage second secured notes funded	132,693,992
Mortgage secured owned	$ 7,300,000

CORRECTION OF PRIOR PERIOD AC_3

CORRECTION OF PRIOR PERIOD ACCOUNTING ERROR (Details) - USD ($)	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Revenues:
Total Revenues	$ 1,575,386	$ 300,357
Cost of Revenues:
Broker Underwriting Expense	147,428	63,099
Mortgage Broker Expense	181,904	36,751
Co-Manager Engagement Fee	2,640	1,246
Appraisal Costs	16,069	3,259
Ratings	31,759	13,097
Total Cost of Revenues	515,399	155,110
Gross Profit (Loss)	1,059,987	145,247
Operating Expenses:
Professional and Legal	95,996	52,344
Total Operating Expenses	1,312,152	350,565
Net Loss from Operations	(252,165)	(205,318)
Total Other Income	842,321	1,781,235
Net Income before Provision for Income Taxes		1,575,917
Provision for Income Taxes	154,852	169,052
Net Income	435,304	1,406,865
Origination Revenue [Member]
Revenues:
Total Revenues	$ 299,794	151,357
As Previously Reported [Member]
Revenues:
Total Revenues		1,118,275
Cost of Revenues:
Broker Underwriting Expense		457,275
Mortgage Broker Expense		231,720
Co-Manager Engagement Fee		7,113
Appraisal Costs		1,995
Ratings		40,000
Total Cost of Revenues		775,761
Gross Profit (Loss)		342,514
Operating Expenses:
Professional and Legal		64,843
Total Operating Expenses		363,064
Net Loss from Operations		(20,550)
Total Other Income		1,781,235
Net Income before Provision for Income Taxes		1,760,685
Provision for Income Taxes		(3,785)
Net Income		1,756,900
As Previously Reported [Member] | Origination Revenue [Member]
Revenues:
Total Revenues		969,275
Prior Period Impact [Member]
Revenues:
Total Revenues		(817,918)
Cost of Revenues:
Broker Underwriting Expense		(394,176)
Mortgage Broker Expense		(194,969)
Co-Manager Engagement Fee		(5,867)
Appraisal Costs		1,264
Ratings		(26,903)
Total Cost of Revenues		(620,651)
Gross Profit (Loss)		(197,267)
Operating Expenses:
Professional and Legal		(12,499)
Total Operating Expenses		(12,499)
Net Loss from Operations		(184,768)
Total Other Income
Net Income before Provision for Income Taxes		(184,768)
Provision for Income Taxes		(165,267)
Net Income		(350,035)
Prior Period Impact [Member] | Origination Revenue [Member]
Revenues:
Total Revenues		$ (817,918)

ACQUISITION OF RELATED PARTY _3

ACQUISITION OF RELATED PARTY AFFILIATE (Details)	9 Months Ended
	Sep. 30, 2020USD ($)
Business Combinations [Abstract]
Accrued & unpaid dividends to the Preferred Capital Interest partners	$ 213,443
JW Korth LLC's Common Capital Interest account	150,000
Contingent liability to redeem J.W. Korth Preferred Capital Interest Partners	696,253
Disposition of outstanding loan due from J.W. Korth Executive Officer	69,780
Total Consideration Paid	$ 1,129,476

ACQUISITION OF RELATED PARTY _4

ACQUISITION OF RELATED PARTY AFFILIATE (Details 1) - J.W. Korth and J.W. Korth, LLC [Member]	Jul. 31, 2020USD ($)
J.W. Korth Net Book Value	$ 889,131
Less: Preferred Interest in J.W. Korth by Company prior to acquisition	(250,000)
Adjusted Net Book Value acquired	$ 639,131

ACQUISITION OF RELATED PARTY _5

ACQUISITION OF RELATED PARTY AFFILIATE (Details Naarrative) - USD ($)	Jul. 31, 2020	Sep. 30, 2020
Goodwill		$ 110,000
J.W. Korth and J.W. Korth, LLC [Member]
Date of acquisition	Jul. 31, 2020
Goodwill	$ 490,345
J.W. Korth and J.W. Korth, LLC [Member] | Mr. Korth and Ms. MacDonald-Korth [Member]
Percentage of partnership interests	80.00%
J.W. Korth [Member]
Percentage of partnership interests	73.60%
Number of share received on closing	3,680,000
J.W. Korth [Member] | Purchase Agreement [Member]
Number of shares distribute to its partners	5,000,000
J.W. Korth [Member] | James Korth [Member]
Percentage of partnership interests	80.00%
J.W. Korth [Member] | Holly MacDonald-Korth [Member]
Percentage of partnership interests	20.00%
J.W. Korth LLC [Member]
Description of distribution after closing of business	The Company acquired all of the membership interests in JW Korth LLC from Mr. Korth and Ms. MacDonald-Korth for consideration of the payment to (i) the Preferred Capital Interest partners of J.W. Korth of accrued and unpaid 6% dividends through July 31, 2020, and (ii) James Korth of $150,000 in payment of the value of his JW Korth LLC’s Common Capital Interest account.
Description of post-closing commitments	(i) retain Mr. Korth as the managing partner of J.W. Korth, Ms. MacDonald-Korth as J.W. Korth’s chief financial officer, and all other employees of JW Korth who were employed at closing of the Transactions; (ii) operate J.W. Korth as an SEC registered broker-dealer and investment advisor; (iii) pay the JW Korth Preferred Capital Interest Partners quarterly dividends concurrently with its payment of the Company’s Series A Preferred Stock dividends at least annually; (iv) in such years as it pays Series A Preferred dividends, redeem 25% annually of the JW Korth Preferred Capital Interest partners through a capital contribution to JW Korth; and (v) make a discretionary redemption of all accounts of the limited partners of J.W. Korth under the J.W. Korth partnership agreement. Upon redemption of the limited partners’ accounts and the payment of the other consideration to described above to the JW Korth partners, KDM will own 100% of the voting interests in JW Korth.

RESTRICTED CASH (Details Narrat

RESTRICTED CASH (Details Narrative)	Sep. 30, 2020USD ($)
Restricted cash corresponds to the Escrow Payable liability	$ 5,932,065
Due to Investors liability including commitment fees and accrued interest	263,341
Actual Basis [Member]
Due to Investors liability including commitment fees and accrued interest	$ 7,505,098

COMMITMENTS (Details)

COMMITMENTS (Details)	Sep. 30, 2020USD ($)
Commitments and Contingencies Disclosure [Abstract]
2020	$ 24,883
2021	27,561
Total	$ 52,444

COMMITMENTS (Details 1)

COMMITMENTS (Details 1)	9 Months Ended
	Sep. 30, 2020USD ($)
Commitments and Contingencies Disclosure [Abstract]
2020	$ 12,013
2021	48,052
Total	$ 60,065

COMMITMENTS (Details Narrative)

COMMITMENTS (Details Narrative)	9 Months Ended
	Sep. 30, 2020USD ($)
Commitments and Contingencies Disclosure [Abstract]
Rent expense	$ 17,311
Discount rate of lease	4.24%

CUSTOMERS (Details Narrative)

CUSTOMERS (Details Narrative)	9 Months Ended
	Sep. 30, 2020Customer
Number of customer	25
Loans outstanding description	One borrower accounts for 37% of our total loans outstanding with two loans adding up to $46.34 million.
Ohio [Member]
Loans outstanding description	41% of the loans, by unpaid balance, are geographically concentrated in the state of Ohio.

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	Apr. 01, 2020	Sep. 30, 2020	Sep. 30, 2019	May 13, 2020	Dec. 31, 2019	Mar. 31, 2019
Due to Parent					$ 12,151
J W Korth [Member]
Due to Parent		$ 6,050		$ 250,000	$ 12,151
Underwriting fees		158,138	$ 34,233
J W Korth [Member] | Private Placement [Member]
Due to Parent						$ 548,802
Mortgage Secured Notes [Member]
Purchase of debt		$ 100,000
Description of corresponding	Along with a second lien loan of $500,000 on the same property. The funding for the second lien was provided by 110 Capital LLC, an entity controlled by a KDM director and employee. KDM services both notes.

DEFERRED REVENUE, NET (Details)

DEFERRED REVENUE, NET (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Deferred origination fees	$ 2,192,378	$ 1,849,100
Deferred origination costs	(1,816,720)	(1,559,531)
Deferred revenue, net	375,658	$ 289,569
New Loan Deferrals [Member]
Deferred origination fees	643,072
Deferred origination costs	(503,194)
Deferred revenue, net	139,878
Amortization Of Deferrals [Member]
Deferred origination fees	(299,794)
Deferred origination costs	246,005
Deferred revenue, net	$ (53,789)

EMPLOYEE AND DIRECTOR STOCK O_3

EMPLOYEE AND DIRECTOR STOCK OPTIONS (Details)	9 Months Ended
	Sep. 30, 2020
Share-based Payment Arrangement [Abstract]
Risk-free interest rate:	1.76%
Expected term:	5 years 9 months
Expected dividend yield:	0.00%
Expected volatility:	35.01%

EMPLOYEE AND DIRECTOR STOCK O_4

EMPLOYEE AND DIRECTOR STOCK OPTIONS (Details 1)	9 Months Ended
	Sep. 30, 2020$ / sharesshares
Shares
Balance, beginning	835,000
Granted
Exercised
Expired or forfeited
Balance, ending	835,000
Options exercisable, ending	417,500
Options expected to vest, ending	417,500
Weighted Average Exercise Price
Balance, beginning | $ / shares	$ 1
Granted | $ / shares
Exercised | $ / shares
Balance, ending | $ / shares	1
Options exercisable, ending | $ / shares	1
Options expected to vest, ending | $ / shares	$ 1
Weighted Remaining Contractual Life (Years)
Balance, ending	9 years 6 months
Exercisable, ending	9 years
Options expected to vest, ending	9 years

EMPLOYEE AND DIRECTOR STOCK O_5

EMPLOYEE AND DIRECTOR STOCK OPTIONS (Details Narrative) - USD ($)	Jun. 28, 2019	Jun. 30, 2019	Sep. 30, 2020	Dec. 31, 2019
Number of shares purchase		835,000
Common stock, par value (in dollars per share)			$ 0.0001	$ 0.0001
Share price (in dollars per share)		$ 1
Weighted-average grant date fair values		$ 0.1855
Stock-based compensation expense			$ 19,359
Non-vested employee stock options term			9 years 6 months
2019 Stock Option Plan (Incentive Plan) [Member]
Stock-based compensation expense			$ 19,359
Unrecognized compensation expense			$ 45,178
Non-vested employee stock options term			1 year 9 months
2019 Stock Option Plan (Incentive Plan) [Member] | Board of Directors [Member]
Number of shares purchase	1,000,000
Common stock, par value (in dollars per share)	$ 0.001

PREFERRED EQUITY (Details Narra

PREFERRED EQUITY (Details Narrative) - USD ($)	1 Months Ended	9 Months Ended
	Sep. 27, 2019	Sep. 30, 2019	Sep. 30, 2020	Dec. 31, 2019
Proceeds from issuance of shares		$ 4,750,000
Expenses related to the issuance			$ 136,874	$ 10,584
Series A 6% Cumulative Perpetual Convertible Preferred Stock [Member]
Value of share issued	$ 200,000
Expenses related to the issuance	4,750,000
Value of shares converted	$ 25
Conversion description	Convertible into common stock at a ratio of 5 shares of common stock for each share of Series A Preferred Stock.
Series A 6% Cumulative Perpetual Convertible Preferred Stock [Member] | J. W. Korth [Member]
Expenses related to the issuance	$ 250,000

FAIR VALUE (Details)

FAIR VALUE (Details) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Financial Assets
Securities	$ 327,848
Fair Value, Measurements, Recurring [Member]
Financial Assets
Mortgages Owned	125,448,182	$ 85,692,812
Mortgage Servicing		2,595,946
Securities	327,848
Total Financial Aseets	129,208,460	88,288,758
Financial Liabilities
Mortgage Secured Notes Payable	132,693,992	85,692,812
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Financial Assets
Mortgages Owned
Mortgage Servicing
Securities
Total Financial Aseets
Financial Liabilities
Mortgage Secured Notes Payable
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Financial Assets
Mortgages Owned	125,448,182	85,692,812
Mortgage Servicing
Securities
Total Financial Aseets	125,448,182	85,692,812
Financial Liabilities
Mortgage Secured Notes Payable	132,693,992	85,692,812
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Financial Assets
Mortgages Owned
Mortgage Servicing	3,432,430	2,595,946
Securities	327,848
Total Financial Aseets	3,760,278	2,595,946
Financial Liabilities
Mortgage Secured Notes Payable

FAIR VALUE (Details 1)

FAIR VALUE (Details 1)	9 Months Ended
	Sep. 30, 2020USD ($)
Beginning balance at January 1, 2020	$ 2,595,946
Purchases	100,000
Trades	225,041
Sales
Issues
Settlements
Net realized gain/loss or Interest income	3,646
Unrealized Gain from newly issued mortgages	1,168,632
Fair Value adjustment	(332,987)
Transfers into Level 3
Transfers out of Level 3
Ending balance at September 30, 2020	3,760,278
Mortgages Servicing Value [Member]
Beginning balance at January 1, 2020	2,595,946
Purchases
Trades
Sales
Issues
Settlements
Net realized gain/loss or Interest income
Unrealized Gain from newly issued mortgages	1,168,632
Fair Value adjustment	(332,148)
Transfers into Level 3
Transfers out of Level 3
Ending balance at September 30, 2020	3,432,430
Securities [Member]
Beginning balance at January 1, 2020
Purchases	100,000
Trades
Sales
Issues
Settlements
Net realized gain/loss or Interest income	3,646
Unrealized Gain from newly issued mortgages
Fair Value adjustment	(839)
Transfers into Level 3
Transfers out of Level 3
Ending balance at September 30, 2020	$ 327,848

FAIR VALUE (Details 2)

FAIR VALUE (Details 2) - Fair Value, Measurements, Recurring [Member]	9 Months Ended
	Sep. 30, 2020USD ($)	Dec. 31, 2019USD ($)
Fair Value		$ 2,595,946
Mortgage Servicing [Member]
Fair Value	$ 3,432,430
Valuation technique	Net Present Value
Unobservable input	Prepayment Discount
Value	0.1555
Securities [Member]
Fair Value	$ 327,848
Valuation technique	Net Present Value
Unobservable input	Net Present Value
Value	0.15

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Income Tax Disclosure [Abstract]
Statutory corporate tax rate	21.00%
Effective tax rate	26.20%
Net income before provision for income taxes	$ 590,156	$ 1,575,917
Provision for income taxe	$ 154,852	$ 169,052

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details)	Sep. 30, 2020USD ($)
Property, Plant and Equipment [Line Items]
Gross Property Equipment	$ 210,758
Accumulated depreciation	(68,300)
Net Property Equipment	142,458
Equipment [Member]
Property, Plant and Equipment [Line Items]
Gross Property Equipment	52,741
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Gross Property Equipment	$ 158,017

PROPERTY AND EQUIPMENT (Detai_2

PROPERTY AND EQUIPMENT (Details Narrative)	9 Months Ended
	Sep. 30, 2020USD ($)
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 600

DUE TO CLEARINGHOUSE BROKERS (D

DUE TO CLEARINGHOUSE BROKERS (Details Narrative)	Sep. 30, 2020USD ($)
Brokers and Dealers [Abstract]
Due to clearinghouse brokers	$ 192,725

CONTINGENT LIABILITY (Details)

CONTINGENT LIABILITY (Details)	9 Months Ended
	Sep. 30, 2020USD ($)
Restructuring Cost and Reserve [Line Items]
Accrued & unpaid dividends through July 31, 2020	$ 59,746
Accrued quarterly dividends recorded as interest expense through September 30, 2020	6,963
Contingent Liability, net	762,962
Michigan Limited Partnership [Member]
Restructuring Cost and Reserve [Line Items]
Contingent Liability, net	$ 696,253

CONTINGENT LIABILITY (Details N

CONTINGENT LIABILITY (Details Narrative) - Michigan Limited Partnership [Member]	9 Months Ended
	Sep. 30, 2020
Restructuring Cost and Reserve [Line Items]
Dividend rate	6.00%
Dividends payable, date to be paid	Jul. 31, 2020
Series A Preferred Stock [Member]
Restructuring Cost and Reserve [Line Items]
Dividend rate	25.00%