Korth Direct Mortgage 10-K31 Mar 232022 FY Annual reportFinancial data

Company Profile

Cover

Cover - USD ($)	12 Months Ended
Cover - USD ($)	Dec. 31, 2022	Jun. 30, 2022
Cover [Abstract]
Document Type	10-K
Amendment Flag	false
Document Annual Report	true
Document Transition Report	false
Document Period End Date	Dec. 31, 2022
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2022
Current Fiscal Year End Date	--12-31
Entity File Number	000-1695962
Entity Registrant Name	KORTH DIRECT MORTGAGE INC.
Entity Central Index Key	0001695963
Entity Tax Identification Number	27-0644172
Entity Incorporation, State or Country Code	FL
Entity Address, Address Line One	135 San Lorenzo Avenue
Entity Address, Address Line Two	Suite 600
Entity Address, City or Town	Coral Gables
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	33146
City Area Code	(305)
Local Phone Number	668-8485
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	Yes
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
Elected Not To Use the Extended Transition Period	false
Entity Shell Company	false
Entity Public Float		$ 0
Entity common stock, shares outstanding shares	5,000,000
Documents Incorporated by Reference [Text Block]	No documents are incorporated in this Form 10-K by reference.
Auditor Name	Berkowitz Pollack Brant
Auditor Location	West Palm Beach, FL
Auditor Firm ID	52

CONSOLIDATED STATEMENTS OF FINA

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($)	Dec. 31, 2022	Dec. 31, 2021
ASSETS
Cash and Cash Equivalents	$ 7,776,789	$ 9,137,672
Restricted Cash	10,583,641	10,343,671
Restricted Investment	3,986,207
Mortgages Owned	447,407,141	326,312,345
Mortgage Servicing Rights, at Fair Value	13,229,889	9,616,357
Portfolio Loans	3,318,832	14,749,862
Securities	567,826	225,006
ROU Leased Asset	723,179	935,323
Goodwill	110,000	110,000
Property and equipment, net of depreciation	18,172,304	304,203
Other Assets	1,673,353	312,019
TOTAL ASSETS	507,549,161	372,046,458
LIABILITIES
Escrows Payable	12,421,553	9,613,634
Lease Liability	768,984	981,418
Deferred Revenue, net	1,593,869	1,157,672
Deferred Tax Liability, net	3,337,261	2,050,220
Contingent Liability, net	327,298	489,952
Mortgage Secured Notes Payable	454,883,011	326,212,364
Warehouse Line of Credit, net	326,736
Other Liabilities and Payables	1,526,488	931,102
Total Liabilities	475,185,200	341,436,362
STOCKHOLDERS' EQUITY
Accumulated Earnings	6,493,385	4,885,445
Additional Paid-in Capital	25,626,614	25,719,332
Common Stock, $0.001 par value, 60,000,000 shares authorized 5,000,000 shares issued and outstanding at December 31, 2022 and December 31, 2021	5,000	5,000
Non-Controlling Interest	238,643
Total Stockholders' Equity	32,363,961	30,610,096
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	507,549,161	372,046,458
Series A Preferred Stock [Member]
STOCKHOLDERS' EQUITY
Preferred stock value	300	300
Series B Preferred Stock [Member]
STOCKHOLDERS' EQUITY
Preferred stock value	$ 19	$ 19

CONSOLIDATED STATEMENTS OF FI_2

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - $ / shares	Dec. 31, 2022	Dec. 31, 2021
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
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 [Member]
Preferred stock, par value (in dollar per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	400,000	400,000
Preferred stock, shares issued	300,000	300,000
Preferred stock, shares outstanding	300,000	300,000
Series B Preferred Stock [Member]
Preferred stock, par value (in dollar per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	20,000	20,000
Preferred stock, shares issued	19,000	19,000
Preferred stock, shares outstanding	19,000	19,000

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($)	12 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($)	Dec. 31, 2022	Dec. 31, 2021
REVENUES
Total Revenues	$ 9,862,033	$ 7,420,763
COST OF REVENUES
Broker Underwriting Expense	2,119,892	1,339,904
Administrative Expenses	952,207	666,803
Total Cost of Revenues	3,072,099	2,006,707
GROSS PROFIT	6,789,934	5,414,056
OPERATING EXPENSES
Office	501,923	496,974
Compensation and Related Benefits	4,237,661	3,826,832
Professional & Legal	775,760	772,512
Advertising	415,137	184,337
Depreciation	117,704	44,626
Total Expenses	6,048,185	5,325,281
Income From Operations	741,749	88,775
Other Income / (Expenses)
Unrealized Gain on Mortgages	3,627,472	5,754,757
Interest Expense	(1,344,907)	(119,645)
Gain from Forgiveness of PPP Loan		161,600
Realized Loss on Mortgage Secured Notes	(564,300)
Realized Gain on Foreclosure	2,413,507
Total Other Income	4,131,772	5,796,712
Income before provision for income taxes	4,873,521	5,885,487
Provision for income taxes	1,287,040	1,458,722
Net Income before non-controlling interest	3,586,481	4,426,765
Less: Net Income attributable to non-controlling interest	238,643
Net Income	3,347,838	4,426,765
Series A Preferred Dividends	450,000	337,500
Series B Preferred Dividends	1,289,899	569,472
Net income attributable to common stockholders	1,607,939	3,519,793
Origination Revenue [Member]
REVENUES
Total Revenues	1,439,675	1,061,145
Service [Member]
REVENUES
Total Revenues	5,865,969	2,966,176
Underwriting Income [Member]
REVENUES
Total Revenues	876,475	1,130,578
Other Revenue [Member]
REVENUES
Total Revenues	$ 1,679,914	$ 2,262,864

CONSOLIDATED STATEMENT OF CHANG

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($)	Preferred Stock Series A [Member]	Preferred Stock Series B [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Noncontrolling Interest [Member]	Total
Beginning balance, value at Dec. 31, 2020	$ 200		$ 5,000	$ 5,016,139	$ 1,365,652		$ 6,386,991
Beginning balance, shares at Dec. 31, 2020	200,000		5,000,000
Share-based compensation				25,812			25,812
Issuance of Series A preferred stock	$ 100			2,374,900			2,375,000
Beginning balance, shares	100,000
Issuance of Series B preferred stock		$ (19)		(18,302,481)			(18,302,500)
Beginning balance, shares		19,000
Series A & Series B preferred stock dividends declared					(906,972)		(906,972)
Net income					4,426,765		4,426,765
Ending balance, value at Dec. 31, 2021	$ 300	$ 19	$ 5,000	25,719,332	4,885,445		30,610,096
Beginning balance, shares at Dec. 31, 2021	300,000	19,000	5,000,000
Share-based compensation				171,282			171,282
Issuance of Series A preferred stock	$ 480			11,856,000			11,856,480
Beginning balance, shares	480,000
Repurchase of Series A preferred stock	$ (480)			(12,120,000)			(12,120,480)
Beginning balance, shares	(480,000)
Series A & Series B preferred stock dividends declared					(1,739,898)		(1,739,898)
Net income					3,347,838	238,643	3,586,481
Ending balance, value at Dec. 31, 2022	$ 300	$ 19	$ 5,000	$ 25,626,614	$ 6,493,385	$ 238,643	$ 32,363,961
Beginning balance, shares at Dec. 31, 2022	300,000	19,000	5,000,000

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	Dec. 31, 2022	Dec. 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$ 3,586,481	$ 4,426,765
Net Cash Provided by/(Used In) Operating Activities:
Unrealized Gain on Mortgages Owned	(3,613,532)	(5,751,941)
Unrealized Loss on Mortgage Secured Notes	(13,940)	(2,816)
Realized Loss on Mortgage Secured Notes	564,300
Realized Gain on Foreclosure	(2,413,507)
Stock Compensation Expense	171,282	25,812
Gain from forgiveness of PPP loan		(161,600)
Depreciation	117,704	44,626
Amortization of loan costs	356,519
Deferred rent expense from operating lease	(290)	39,683
Deferred income taxes	1,287,040	1,409,109
Changes in Operating Assets and Liabilities:
Mortgage Secured Notes Issued	128,670,647	150,841,514
Mortgage Secured Notes Purchased	(893,180)	106,962
Restricted Investment	(3,986,207)
Warehouse LOC	(29,783)
Portfolio Loans	3,931,030	(12,707,448)
Other Assets	140,290	(1,313)
Deferred Revenue, net	436,197	657,542
Escrow Payable	2,807,918	3,151,240
Contingent Liability	(162,654)
Other Liabilities and Payables	540,489	103,505
New Mortgage Lending	(130,594,796)	(150,941,495)
Total Adjustments	(2,684,473)	(13,186,620)
NET CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES	902,008	(8,759,855)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment	(73,921)	(162,126)
Acquisition of related party affiliate, net of cash acquired		(215,502)
NET CASH (USED IN) INVESTING ACTIVITIES	(73,921)	(377,628)
CASH FLOWS FROM FINANCING ACTIVITIES
Payment of Series A/B preferred stock dividends	(1,685,000)	(701,139)
Repurchase of Series A preferred stock	(12,120,480)
Net proceeds from the sale of Series A preferred stock	11,856,480	2,375,000
Net proceeds from the sale of Series B preferred stock		18,302,500
NET CASH (USED IN)/PROVIDED BY FINANCING ACTIVITIES	(1,949,000)	19,976,361
NET (DECREASE)/INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	(1,120,913)	10,838,878
CASH, CASH EQUIVALENTS AND RESTRICTED CASH – Beginning of Year	19,481,343	8,642,465
CASH, CASH EQUIVALENTS AND RESTRICTED CASH – End of Year	18,360,430	19,481,343
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION
Cash paid during the year for interest	1,353,881	119,645
Cash paid for income taxes	91,708
NON-CASH INVESTING AND FINANCING ACTIVITIES
Assets acquired through settlement in lieu of foreclosure	$ 19,353,508

NATURE OF BUSINESS

NATURE OF BUSINESS	12 Months Ended
NATURE OF BUSINESS	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
NATURE OF BUSINESS	NOTE 1 - NATURE OF BUSINESS Korth Direct Mortgage, Inc. (the “Company” or “KDM”) is incorporated in the State of Florida. The Company was created to originate mortgages and fund those mortgages with Notes secured by mortgage loans. J.W. Korth & Company Limited Partnership (“J.W. Korth”) is a wholly owned subsidiary of KDM. J.W. Korth is a securities broker dealer registered with the Securities Exchange Commission and the states of Michigan, Florida, and various other states and an SEC registered investment adviser under the Investment Advisers Act of 1940. J.W. Korth is a licensed member of the Financial Industry Regulatory Authority (FINRA), the Securities Investor Protection Corporation, as well as a Municipal Securities Rulemaking Board (MSRB) registrant.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Dec. 31, 2022
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 the accounts of J.W. Korth and KDM Funding I LLC, the Company’s wholly-owned subsidiaries. Beginning November 2022, the consolidated financial statements also include the accounts of KDM Stafford LLC, an entity controlled by the Company. Intercompany balances and transactions have been eliminated in consolidation. BASIS OF ACCOUNTING The accompanying financial statements have been prepared on the accrual basis of accounting, in accordance with Generally Accepted Accounting Principles (“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. BASIS OF PRESENTATION Beginning in the first quarter of 2022, we have condensed certain categories of information in our consolidated financial statements to enhance the readability and understanding of those statements by making them more succinct. As a result, certain footnote disclosures we normally include in our annual consolidated financial statements have been omitted but remain prepared in accordance with GAAP. In management’s opinion, we have made all adjustments (consisting only of normal, recurring adjustments, except as otherwise indicated) necessary to fairly present our audited consolidated statements of financial condition, income, changes in stockholders’ equity, and cash flows. CASH, CASH EQUIVALENTS AND RESTRICTED CASH 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. The following table provides a reconciliation of cash, cash equivalents, and restricted cash to amounts shown in the consolidated statement of cash flows as of December 31, 2022 and 2021: Schedule of cash and cash equivalents 2022 2021 Cash and Cash Equivalents $ 7,776,789 $ 9,137,672 Restricted Cash 10,583,641 10,343,671 $ 18,360,430 $ 19,481,343 The Company maintains cash and restricted cash balances at financial institutions in excess of federally insured limits. The Company has not experienced any losses related to these balances. The Federal Deposit Insurance Corporation insures eligible accounts up to $ 250,000 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 Audited Statements of Financial Condition, and is recognized on the Audited Statements of Income 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. As of December 31, 2022 and 2021, the Company has funded loans totaling $ 447,407,141 326,312,345 454,883,011 326,212,364 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 December 31, 2022 and 2021, the Company had issued Portfolio Loans in the amount of $ 3,318,832 14,749,862 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 December 31, 2022. 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. On November 22, 2022, we obtained control of an income producing property and started collecting leasing revenue. We recorded rental income of $ 93,126 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 Corresponding Mortgage Loan (“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 J.W. Korth for the trading of securities either for its own account or on behalf of its clients. Revenue from trading profits is recognized upon settlement of the securities transactions. Leasing Revenue Leasing revenue represents revenues generated through KDM Stafford for rental income earned from operating leases at rental properties majority-owned and controlled by KDM. Leasing revenue generated from operating leases are recognized over the lease term on a straight-line basis. 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. LEASES In February 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-02, “Leases (Topic 842).” The standard requires organizations to recognize right-of-use (“ROU”) assets and lease liabilities on the balance sheet and disclose key information about leases that were historically classified as operating leases under previous GAAP. As part of the adoption of this standard, the Company recognizes lease liabilities with a corresponding ROU leased asset of approximately the same amount based on the present value of the remaining lease payments pursuant to current leasing standards for existing operating leases. 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. Since the Company’s common stock is not publicly traded, we do not have sufficient Company specific information regarding the volatility of our share price on which to base an estimate of expected volatility. As a result, we use the historical volatilities of similar entities within our industry as the expected volatility of our share price. The expected dividend yield is 0% as the Company has not paid any dividends on its common stock and does not anticipate it will pay any dividends in the foreseeable future on its common stock. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of the grant date with a remaining term equal to the expected term of the stock-based award. Since the Company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate the expected term, the Company utilizes the simplified method to calculate the expected term of stock-based awards based on the average of the vesting term and contractual term of the 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 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 small number of loans outstanding, we have a limited basis to predict prepayment rates and default rates. DUE TO CLEARINGHOUSE BROKERS J.W. Korth 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 December 31, 2022, the Company had a net amount due to the clearinghouse brokers of $ 13,700 DEPRECIATION Depreciation is provided on a straight-line basis using estimated useful lives of three seven I NCOME TAXES 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. The Company’s tax returns for the years ended December 31,2018, and after remain subject to examination by federal and state jurisdictions. RECENT ACCOUNTING PRONOUNCEMENTS In June 2016, the FASB issued ASU 2016-13 Financial Instruments, Measurement of Credit Losses on Financial Instruments. This ASU updates the existing incurred loss model to a current expected credit loss (“CECL”) model for financial assets and net investments in leases that are not accounted for at fair value through earnings. The amendments affect cash and cash equivalents, reverse repurchase agreements, certain loans, held-to-maturity debt securities, trade receivables, net investments in leases, off-balance sheet credit exposures and any other financial assets not excluded from the scope. There are also limited amendments to the impairment model for available-for-sale debt securities. ASU 2016-13 is effective for annual reporting periods beginning after December 15, 2022 for public smaller reporting companies, including interim reporting periods within those fiscal years. Early adoption is permitted, but not before annual reporting periods beginning after December 15, 2018. Management is currently evaluating the impact that the adoption of ASU 2016-13 will have on the Company’s consolidated financial statements.

CONTINGENT LIABILITY

CONTINGENT LIABILITY	12 Months Ended
CONTINGENT LIABILITY	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
CONTINGENT LIABILITY	NOTE 3 – CONTINGENT LIABILITY As part of the acquisition of J. W. Korth in 2020, the Company agreed to pay (i) the Preferred Capital Interest partners of J.W. Korth accrued and unpaid 6 July 31, 2020 25 The following table summarizes the unpaid Contingent Liability outstanding as of December 31, 2022 and 2021: Schedule of unpaid contingent liability outstanding 2022 2021 Contingent liability to redeem J.W. Korth Preferred Capital Interest Partners $ 320,500 $ 480,751 Accrued and unpaid dividends recorded as interest expense 6,798 9,201 Contingent Liability, net $ 327,298 $ 489,952

MORTGAGE SECURED NOTES PAYABLE

MORTGAGE SECURED NOTES PAYABLE	12 Months Ended
MORTGAGE SECURED NOTES PAYABLE	Dec. 31, 2022
Debt Disclosure [Abstract]
MORTGAGE SECURED NOTES PAYABLE	NOTE 4 – MORTGAGE SECURED NOTES PAYABLE As stated above in Note 2, the Company funds mortgage loans that it makes by issuing Mortgage Secured Notes (“MSNs”), which are secured by those same mortgages. As of December 31, 2022 and 2021, the Company has funded loans totaling $ 447,407,141 326,312,345 454,883,011 326,212,345 The MSNs are typically five-year interest-only notes with the principal balance due at maturity, but terms can vary. Interest rates on the MSNs range from 4.25 8.239 The following table is a schedule of future maturities of the MSNs for each of the five years after December 31, 2022: Schedule of future maturities Years ending December 31 Future Maturities of Debt 2023 $ 12,528,434 2024 107,637,351 2025 94,801,469 2026 117,381,015 2027 87,527,854 Thereafter 35,006,888 Total $ 454,883,011

RESTRICTED CASH AND INVESTMENTS

RESTRICTED CASH AND INVESTMENTS	12 Months Ended
RESTRICTED CASH AND INVESTMENTS	Dec. 31, 2022
Restricted Cash And Investments
RESTRICTED CASH AND INVESTMENTS	NOTE 5 - RESTRICTED CASH AND INVESTMENTS The Company maintains multiple segregated accounts in trust for borrowers and investors. The value of these accounts is carried under the asset accounts, “Restricted Cash” and “Restricted Investment,” with respective offsets to the liability accounts, “Escrows Payable” and “Other Liabilities and Payables.” 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 has a balance of $ 626,414 9,519,859 The “In Trust for 2” account receives payments from borrowers and distributes payments to investors, and pays the servicing fee to the Company. This account has a balance of $ 752,156 421,286 The Company also maintains 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 were $ 100,359 93,775 The Company maintains an account for payment of quarterly Preferred Series B dividends that has a balance of $ 308,750 The Company maintains an account restricted per the warehouse line agreement that has a balance of $ 1,000,000 The Company maintains a cash management account that holds a portion of the restricted cash, which is swept on a regular basis. The account had a balance of $ 8,000,000 The Company invests a portion of the restricted cash collected from borrowers in U.S. Treasury Bills with maturities of six to twelve months. The Restricted Investment account had a balance of $ 3,986,207

ACQUISITION OF RENTAL PROPERTY

ACQUISITION OF RENTAL PROPERTY - USD ($)	12 Months Ended
ACQUISITION OF RENTAL PROPERTY - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Restructuring Cost and Reserve [Line Items]
ACQUISITION OF RENTAL PROPERTY	NOTE 6 – ACQUISITION OF RENTAL PROPERTY In November 2022, through a Settlement in Lieu of Foreclosure Agreement, the Company obtained majority ownership and the controlling interest in rental property located in Stafford, Virginia. As part of the agreement, a $9.5 million mortgage held by the Company was assigned to a newly created special-purpose entity, KDM Stafford LLC, which is majority-owned and controlled by the Company. The original borrower maintained a minority interest in the special-purpose entity. For the year ended December 31, 2022, the Company recorded net income attributable to the non-controlling interest of $ 238,643 As part of the transaction, the Company recognized a gain of $ 2,413,507 Schedule of fair value of net assets acquired: Fair value of Net Assets Acquired: Cash $ 74,381 Restricted cash 296,615 Building and land 17,900,000 Acquired operating leases 1,142,511 Mortgage liability assumed (9,500,000 ) Net Assets Acquired 9,913,507 Less: Investment in special-purpose entity (7,500,000 ) Gain on Settlement Agreement $ 2,413,507
Cash	$ 8,000,000
Restricted cash	10,583,641	$ 10,343,671
K D M Stafford L L C [Member]
Restructuring Cost and Reserve [Line Items]
Cash	74,381
Restricted cash	296,615
Building and land	17,900,000
Acquired operating leases	1,142,511
Mortgage liability assumed	(9,500,000)
Net Assets Acquired	9,913,507
Less: Investment in special-purpose entity	(7,500,000)
Gain on Settlement Agreement	$ 2,413,507

COMMITMENTS

COMMITMENTS	12 Months Ended
COMMITMENTS	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS	NOTE 7 - COMMITMENTS The Company maintains office space in Coral Gables, Florida. The Company entered into a lease in November 2020 for a term of sixty-two months with the right to extend the term of the lease for two additional, successive periods of two years upon the same terms and conditions of the initial term. In December 2020, the Company entered into a Sublease Agreement to sublet a portion of the office space described above. The subtenant has agreed to cover the proportionate amount of the lease costs associated with the office space based on essentially the same terms as the lease described above, including the rights to extend for two successive two-year periods. For the years ended December 31, 2022 and 2021, the Company recognized $58,555 and $48,030, respectively, of sublease rental income, which is recorded as an offset to the Company’s rental expense discussed below. On January 13, 2021, J.W. Korth negotiated a five-month early termination of its lease for its Miami office and will rely entirely on its parent for office space at the Coral Gables location. The J. W. Korth Michigan office has renegotiated a new lease which began in May 2021 for a term of sixty months. The net present value of future lease payments pursuant to the operating lease agreements are included in the ROU Leased Asset and the Lease Liability accounts on the Consolidated Statements of Financial Condition. The ROU Leased Asset represents the right to use an underlying asset for the remaining lease term. The Lease Liability represents the obligation to make lease payments pursuant to the terms of the lease agreements. Net rental expense for the year ended December 31, 2022 was $ 263,523 273,926 As of December 31, 2022, the net present value of the future lease liabilities, using the weighted-average discount rate of 4.24 3.1 768,984 981,418 The following is a schedule of the maturities of future lease payments over the remaining life of the operating leases, reconciled to the net present value of as of December 31, 2022: Schedule of future minimum rental payments for operating leases Future Lease 2023 $256,920 2024 264,087 2025 271,470 2026 30,504 Total Lease Payments 822,981 Less: Imputed Interest (53,997) Present Value of Lease Liabilities $768,984 PPP Loan In April 2020, J. W. Korth, at that time the parent company of KDM, availed itself of a Paycheck Protection Program loan (“PPP Loan”) in the amount of $ 161,600

INDEMNIFICATIONS

INDEMNIFICATIONS	12 Months Ended
INDEMNIFICATIONS	Dec. 31, 2022
Indemnifications
INDEMNIFICATIONS	NOTE 8 - 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	12 Months Ended
CUSTOMERS	Dec. 31, 2022
Risks and Uncertainties [Abstract]
CUSTOMERS	NOTE 9 - CUSTOMERS The Company has thirty-nine and forty-one

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
RELATED PARTY TRANSACTIONS	Dec. 31, 2022
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 10 – RELATED PARTY TRANSACTIONS From time to time, the Company purchases MSNs and holds them in its brokerage account. These MSNs are included on the statement of financial condition as Securities. Also from time to time, second lien or balance sheet loans may be all or partially funded by entities controlled by KDM directors or employees; such loans are serviced by KDM.

DEFERRED REVENUE, NET

DEFERRED REVENUE, NET	12 Months Ended
DEFERRED REVENUE, NET	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
DEFERRED REVENUE, NET	NOTE 11 – 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 Consolidated Statement of Financial Condition. The following is a summary of the loan originating fees and costs deferred and amortized for the years ended December 31, 2022 and 2021: Schedule of loan originating fees and costs deferred and amortized Deferred Origination Deferred Deferred Deferred Revenue at December 31, 2021 $ 4,226,325 $ (3,068,653 ) $ 1,157,672 New loan deferrals 2,636,924 (1,807,399 ) 829,525 - Amortization of deferrals (1,434,426 ) 1,041,098 (393,328 ) Deferred Revenue at December 31, 2022 $ 5,428,823 $ (3,834,954 ) $ 1,593,869 Deferred Origination Deferred Deferred Deferred Revenue at December 31, 2020 $ 2,617,443 $ (2,117,313 ) $ 500,130 New loan deferrals 2,670,027 (1,649,782 ) 1,020,245 Amortization of deferrals (1,061,145 ) 698,442 (362,703 ) Deferred Revenue at December 31, 2021 $ 4,226,325 $ (3,068,653 ) $ 1,157,672

EMPLOYEE AND DIRECTOR STOCK OPT

EMPLOYEE AND DIRECTOR STOCK OPTIONS	12 Months Ended
EMPLOYEE AND DIRECTOR STOCK OPTIONS	Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]
EMPLOYEE AND DIRECTOR STOCK OPTIONS	NOTE 12 – 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. Effective December 8, 2022, the Incentive Plan was amended to authorize the purchase of up to an aggregate of 3,000,000 0.001 During the year ended December 31, 2022, the Company issued options to purchase 255,000 3.00 1.2160 Schedule of estimated fair value of stockoptions weighted-average assumptions Risk-free interest rate: 3.62 Expected term: 5.78 Expected dividend yield: 0 Expected volatility: 51.68 For the years ended December 31, 2022 and 2021, the Company recorded $ 171,282 25,812 151,708 12,908 3.0 0.5 Stock option activity for the years ended December 31, 2022 and 2021, is summarized as follows: Schedule of stock option activity 2019 Stock Option Plan: Shares Weighted Weighted Options outstanding at January 1, 2021 835,000 $ 1.00 8.5 Granted - Exercised - Expired or forfeited - Options outstanding at December 31, 2021 835,000 $ 1.00 7.5 Granted 255,000 3.00 Exercised - Expired or forfeited - Options outstanding at December 31, 2022 1,090,000 $ 1.47 7.75 Options exercisable at December 31, 2022 962,500 $ 1.12 7.3 Options expected to vest at December 31, 2022 127,500 $ 3.00 9.0

PREFERRED EQUITY

PREFERRED EQUITY	12 Months Ended
PREFERRED EQUITY	Dec. 31, 2022
Equity [Abstract]
PREFERRED EQUITY	NOTE 13 – PREFERRED EQUITY On September 27, 2019, the Company issued 200,000 4,750,000 250,000 25 convertible into common stock at a ratio of 5 shares of common stock for each share of Series A Preferred Stock. On August 12, 2022, the Company repurchased and retired 480,000 25.25 12,120,480 640,000 On June 29, 2021, the Company issued 19,000 18,302,500 697,500 The Series B preferred stock is non-convertible and will pay cumulative dividends, if and when declared by the Company’s board of directors, at a rate of 6.50 0.001 pari passu The Company is required to use commercially reasonable efforts to maintain a nationally-recognized statistical ratings organization, or NRSRO, rating for so long as any shares of Series B preferred stock remain outstanding. If the Company fails to maintain an NRSRO rating for the Series B preferred stock of at least BBB (or the equivalent thereof), the dividend rate applicable to the Series B preferred stock will be increased by 25 basis points, and in the event the Company fails to maintain an NRSRO rating of at least BBB- (or the equivalent thereof), the dividend rate applicable to the Series B preferred stock will be increased by an additional 25 basis points. The Series B preferred stock is redeemable at the Company’s option, in whole or in part, on or after June 29, 2026, at a redemption price per share equal to $ 1,000 · 10% of the originally-issued shares of Series B preferred stock on June 29, 2027; · 10% of the originally-issued shares of Series B preferred stock on June 29, 2028; · 10% of the originally-issued shares of Series B preferred stock on June 29, 2029; · 20% of the originally-issued shares of Series B preferred stock on June 29, 2030; and · 50% of the originally-issued shares of Series B preferred stock on June 29, 2031. The Company’s obligations to redeem the Series B preferred stock will be secured by a security interest on servicing fees, as specified in each mortgage secured note issued by the Company, which is the difference between the interest payable pursuant to the mortgage secured note and the interest receivable pursuant to the related commercial real estate mortgage loan. The requisite holders of Series B preferred stock will be entitled to exercise rights and remedies pursuant to such security interest in the event that the Company does not pay the relevant mandatory redemption price (inclusive of any accrued and unpaid dividends) within thirty (30) days of the applicable redemption date, except with respect to the final redemption date, which is not subject to a thirty (30)-day grace period. The Company declared and paid dividends for the years ended December 31, 2022 and 2021, as follows: Schedule of dividend paid Series A Series B Total Preferred Accrued Preferred Dividends, January 1, 2021 $ 12,500 $ - $ 12,500 Declared Dividends 337,500 569,472 906,972 Paid Dividends (337,500 ) (363,639 ) (701,139 ) Accrued Preferred Dividends, December 31, 2021 12,500 205,833 218,333 Declared Dividends 450,000 1,289,899 1,739,899 Paid Dividends (450,000 ) (1,235,000 ) (1,685,000 ) Accrued Preferred Dividends, December 31, 2022 $ 12,500 $ 260,732 $ 273,232

FAIR VALUE

FAIR VALUE	12 Months Ended
FAIR VALUE	Dec. 31, 2022
Fair Value Disclosures [Abstract]
FAIR VALUE	NOTE 14 – 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, net of any MSNs held by the firm. 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 Consolidated Statement of Financial Condition as “Mortgage Servicing Rights, at Fair Value.” Securities J. W. Korth held $ 225,000 KDM also holds a small amount of its own MSNs in an account which it may buy from time to time. These bonds are carried at the published statement values. Fair Value Disclosure The following tables display the Company’s assets and liabilities measured at fair value on a recurring basis: Schedule of fair value, assets and liabilities measured on recurring basis December 31, 2022 Total Level I Level II Level III Financial Assets Mortgages Owned $ 447,407,141 $ - $ 447,407,141 $ - Mortgage Servicing 13,229,889 - - 13,229,889 Portfolio Loans 3,318,832 - 3,318,832 - Securities 342,826 - 342,826 - Non-MSN Securities 225,000 - - 225,000 Total Financial Assets $ 464,523,688 $ - $ 451,068,799 $ 13,454,889 Financial Liabilities Mortgage Secured Notes Payable $ 454,883,011 $ - $ 454,883,011 $ - Warehouse Line of Credit 1,560,000 - 1,560,000 - Total Financial Liabilities $ 456,443,011 $ - $ 456,443,011 $ - December 31, 2021 Financial Assets Mortgages Owned $ 326,312,345 $ - $ 326,312,345 $ - Mortgage Servicing 9,616,357 - - 9,616,357 Portfolio Loans 14,749,862 - 14,749,862 - Non-MSN Securities 225,006 - - 225,006 Total Financial Assets $ 350,903,570 $ - $ 341,062,207 $ 9,841,363 Financial Liabilities Mortgage Secured Notes Payable $ 326,212,364 $ - $ 326,212,364 $ - Fair Value Measurements Changes in Fair Value Measurements for the year ended December 31, 2022 The Company has engaged MIAC Analytics to assist in the valuation of the mortgage servicing component of its business. This leads to significant changes in underlying assumptions within the valuation model, which are detailed below. The following table presents a reconciliation of changes in Level 3 assets and liabilities reported in the Audited Consolidated Statements of Financial Condition for the year ended December 31, 2022 and 2021: Changes in assets: Year ended December 31, 2022 Mortgage Non-MSN Total Value Beginning balance at January 1, 2022 $ 9,616,357 $ 225,006 $ 9,841,363 Sales - (6 ) (6 ) Unrealized Gain from newly issued mortgages 4,187,817 - 4,187,817 Fair Value adjustment (574,285 ) - (574,285 ) Ending balance at December 31, 2022 $ 13,229,889 $ 225,000 $ 13,454,889 Changes in assets: Year ended December 31, 2021 Mortgage Non-MSN Total Value Beginning balance at January 1, 2021 $ 3,864,416 $ 329,106 $ 4,193,522 Purchases - 1,973,430 1,973,430 Trades - 6 6 Sales - (1,995,081 ) (1,995,081 ) Eliminating entry - (99,981 ) (99,981 ) Net realized gain/loss or Interest income - 14,710 14,710 Unrealized Gain from newly issued mortgages 6,773,689 - 6,773,689 Fair Value adjustment (1,021,748 ) 2,816 (1,018,932 ) Ending balance at December 31, 2021 $ 9,616,357 $ 225,006 $ 9,841,363 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 year ended December 31, 2022 and December 31, 2021, 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 December 31, 2022 and December 31, 2021: Schedule of quantitative information 2022 Investment type Fair Value Valuation technique Unobservable inputs Values Mortgage servicing $ 13,229,889 Net Present Value Prepayment Discount 7.64 % Securities $ 342,826 Net Present Value Non-MSN Securities $ 225,000 Net Present Value Discount rate 15.00 % 2021 Investment type Fair Value Valuation technique Unobservable inputs Values Mortgage servicing $ 9,616,357 Net Present Value Prepayment Discount 15.67 % Non-MSN Securities $ 225,006 Net Present Value Discount rate 15.00 %

WAREHOUSE LINE OF CREDIT

WAREHOUSE LINE OF CREDIT	12 Months Ended
WAREHOUSE LINE OF CREDIT	Dec. 31, 2022
Warehouse Line Of Credit
WAREHOUSE LINE OF CREDIT	NOTE 15 – WAREHOUSE LINE OF CREDIT On March 31, 2022, The Company entered into a Master Repurchase Agreement and Securities Contract with Signature Bank (now Flagstar Bank) for the provision of an uncommitted warehouse facility up to $100,000,000. (the “ Line The Line is floating rate and both the haircut percentage and SOFR-linked interest rate spread vary according to property type and time on the line. The Line offers up to 75% leverage on investment grade loans and is designed for 30 to 90 day hold periods but can accommodate up to a 12-month holding period, with decreasing leverage as time passes. In connection with entering into the Line, the Company incurred loans fees of approximately $ 1,589,783 As of December 31, 2022, the Company had a balance of $ 1,560,000 356,519 On March 20, 2023, Signature Bank announced that much of its assets, including our warehouse line would now operate under the New York Community Bancorp’s Flagstar Bank, N.A.

INCOME TAXES

INCOME TAXES	12 Months Ended
INCOME TAXES	Dec. 31, 2022
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 16 – INCOME TAXES Income tax expense is detailed as follows: Schedule of income tax expense 2022 2021 Deferred income tax expense: Federal $ 1,007,745 $ 1,142,172 State 279,295 316,550 Total deferred income tax expense $ 1,287,040 $ 1,458,722 Total income tax expense $ 1,287,040 $ 1,458,722 Income tax expense differs from the amounts that would result from applying the federal statutory rate of 21% to the Company’s income before taxes for the years ended December 31, 2022 and 2021, are as follows Schedule of income before taxes 2022 2021 Computed “expected” income tax expense $ 1,023,439 21 % $ 1,235,952 21 % State income taxes, net of federal benefit 220,643 4.5 % 250,075 4.2 % PPP loan forgiveness - 0.0 % (33,936 ) -0.6 % Non-deductible expenses 42,740 0.9 % 17,038 0.3 % Other, net 218 0.0 % (10,407 ) -0.1 % Total income tax expense $ 1,287,040 26.4 % $ 1,458,722 24.8 % Temporary differences that give rise to the components of deferred tax assets and liabilities as of December 31, 2022 and 2021, are as follows: Schedule of deferred tax assets and liabilities 2022 2021 Deferred tax assets: Deferred revenue, net $ 403,966 $ 293,412 Deferred rent from operating leases 11,609 13,308 Net operating loss carry-forwards 138,424 - Deferred tax assets - current 553,999 306,720 Less: Valuation allowance - - Net deferred tax assets $ 553,999 $ 306,720 Deferred tax liabilities: Fixed assets/depreciation (75,867 ) (74,900 ) Unrealized (loss) on mortgage secured notes (3,967 ) (434 ) Realized (gain) on foreclosure (611,703 ) - Unrealized gain on accrued interest (2,475 ) (208 ) Unrealized gain on mortgages (3,197,248 ) (2,281,398 ) Deferred tax liability $ (3,891,260 ) $ (2,356,940 ) Net deferred tax asset (liability), net $ (3,337,261 ) $ (2,050,220 ) As of December 31, 2022, the Company had net operating loss carry-forwards of $ 546,160 As of December 31, 2022, management determined that there should be no valuation allowance against the net deferred tax assets of $ 553,999 The Company has not recognized any tax benefits from uncertain tax positions for any of the reporting periods presented. Although it is reasonably possible that certain unrecognized tax benefits may increase or decrease within the next twelve months due to tax examination changes, settlement activities, expirations of statute of limitations, or the impact on recognition and measurement considerations related to the results of published tax cases or other similar activities, the Company does not anticipate any significant changes to unrecognized tax benefits over the next 12 months. During the year ended December 31, 2022, no interest or penalties were required to be recognized relating to unrecognized tax benefits. The Company files U.S. federal and state tax returns, of which the open tax period subject to examination by taxing authorities include the years ended December 31, 2019, 2020, and 2021. The Company is not currently subject to any examinations by any state or federal taxation authority.

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	12 Months Ended
PROPERTY AND EQUIPMENT	Dec. 31, 2022
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	NOTE 17 – PROPERTY AND EQUIPMENT Property and Equipment are summarized as follows: 2022 Schedule of property and equipment Land & Building $ 17,900,000 Equipment 276,358 Furniture and fixtures 183,760 18,360,118 Accumulated depreciation (187,814 ) Net Property Equipment $ 18,172,304 2021 Equipment $ 210,953 Furniture and fixtures 178,672 389,625 Accumulated depreciation (85,422 ) Net Property Equipment $ 304,203 Depreciation expense for the period ending December 31, 2022 and December 31, 2021 was $ 117,704 44,626

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
SUBSEQUENT EVENTS	Dec. 31, 2022
Accounting Policies [Abstract]
SUBSEQUENT EVENTS	NOTE 18 – SUBSEQUENT EVENTS The Company has evaluated all events or transactions that occurred after December 31, 2022 through the date that the financial statements were available to be issued. During this period, there were no material subsequent events requiring disclosure, other than those noted below. a. From January 1, 2023 through March 31, 2023 the Company closed $ 55,000,000 b. The Company approved a $ 112,500 c. The Company approved a $ 308,750 d. KDM sold a non-performing loan to an unrelated third party. All related CM Loan Investors were made whole. e. On March 11, 2023, KDM’s warehouse lender Signature was placed into receivership by the FDIC. KDM has been advised that the warehouse line was acquired by New York Community Bancorp’s Flagstar Bank division and that the line is still open. f. On March 23, 2023, KDM issued and sold 160,000 The Company currently has no loans in payment default.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	Dec. 31, 2022
Accounting Policies [Abstract]
PRINCIPLES OF CONSOLIDATION	PRINCIPLES OF CONSOLIDATION The accompanying consolidated financial statements include the accounts of the Company and the accounts of J.W. Korth and KDM Funding I LLC, the Company’s wholly-owned subsidiaries. Beginning November 2022, the consolidated financial statements also include the accounts of KDM Stafford LLC, an entity controlled by the Company. Intercompany balances and transactions have been eliminated in consolidation.
BASIS OF ACCOUNTING	BASIS OF ACCOUNTING The accompanying financial statements have been prepared on the accrual basis of accounting, in accordance with Generally Accepted Accounting Principles (“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.
BASIS OF PRESENTATION	BASIS OF PRESENTATION Beginning in the first quarter of 2022, we have condensed certain categories of information in our consolidated financial statements to enhance the readability and understanding of those statements by making them more succinct. As a result, certain footnote disclosures we normally include in our annual consolidated financial statements have been omitted but remain prepared in accordance with GAAP. In management’s opinion, we have made all adjustments (consisting only of normal, recurring adjustments, except as otherwise indicated) necessary to fairly present our audited consolidated statements of financial condition, income, changes in stockholders’ equity, and cash flows.
CASH, CASH EQUIVALENTS AND RESTRICTED CASH	CASH, CASH EQUIVALENTS AND RESTRICTED CASH 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. The following table provides a reconciliation of cash, cash equivalents, and restricted cash to amounts shown in the consolidated statement of cash flows as of December 31, 2022 and 2021: Schedule of cash and cash equivalents 2022 2021 Cash and Cash Equivalents $ 7,776,789 $ 9,137,672 Restricted Cash 10,583,641 10,343,671 $ 18,360,430 $ 19,481,343 The Company maintains cash and restricted cash balances at financial institutions in excess of federally insured limits. The Company has not experienced any losses related to these balances. The Federal Deposit Insurance Corporation insures eligible accounts up to $ 250,000
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 Audited Statements of Financial Condition, and is recognized on the Audited Statements of Income 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. As of December 31, 2022 and 2021, the Company has funded loans totaling $ 447,407,141 326,312,345 454,883,011 326,212,364
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 December 31, 2022 and 2021, the Company had issued Portfolio Loans in the amount of $ 3,318,832 14,749,862
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 December 31, 2022.
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. On November 22, 2022, we obtained control of an income producing property and started collecting leasing revenue. We recorded rental income of $ 93,126 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 Corresponding Mortgage Loan (“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 J.W. Korth for the trading of securities either for its own account or on behalf of its clients. Revenue from trading profits is recognized upon settlement of the securities transactions. Leasing Revenue Leasing revenue represents revenues generated through KDM Stafford for rental income earned from operating leases at rental properties majority-owned and controlled by KDM. Leasing revenue generated from operating leases are recognized over the lease term on a straight-line basis. 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.
LEASES	LEASES In February 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-02, “Leases (Topic 842).” The standard requires organizations to recognize right-of-use (“ROU”) assets and lease liabilities on the balance sheet and disclose key information about leases that were historically classified as operating leases under previous GAAP. As part of the adoption of this standard, the Company recognizes lease liabilities with a corresponding ROU leased asset of approximately the same amount based on the present value of the remaining lease payments pursuant to current leasing standards for existing operating leases.
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. Since the Company’s common stock is not publicly traded, we do not have sufficient Company specific information regarding the volatility of our share price on which to base an estimate of expected volatility. As a result, we use the historical volatilities of similar entities within our industry as the expected volatility of our share price. The expected dividend yield is 0% as the Company has not paid any dividends on its common stock and does not anticipate it will pay any dividends in the foreseeable future on its common stock. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of the grant date with a remaining term equal to the expected term of the stock-based award. Since the Company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate the expected term, the Company utilizes the simplified method to calculate the expected term of stock-based awards based on the average of the vesting term and contractual term of the 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	Unrealized Gain on Mortgages 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 small number of loans outstanding, we have a limited basis to predict prepayment rates and default rates.
DUE TO CLEARINGHOUSE BROKERS	DUE TO CLEARINGHOUSE BROKERS J.W. Korth 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 December 31, 2022, the Company had a net amount due to the clearinghouse brokers of $ 13,700
DEPRECIATION	DEPRECIATION Depreciation is provided on a straight-line basis using estimated useful lives of three seven
NCOME TAXES	I NCOME TAXES 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. The Company’s tax returns for the years ended December 31,2018, and after remain subject to examination by federal and state jurisdictions.
RECENT ACCOUNTING PRONOUNCEMENTS	RECENT ACCOUNTING PRONOUNCEMENTS In June 2016, the FASB issued ASU 2016-13 Financial Instruments, Measurement of Credit Losses on Financial Instruments. This ASU updates the existing incurred loss model to a current expected credit loss (“CECL”) model for financial assets and net investments in leases that are not accounted for at fair value through earnings. The amendments affect cash and cash equivalents, reverse repurchase agreements, certain loans, held-to-maturity debt securities, trade receivables, net investments in leases, off-balance sheet credit exposures and any other financial assets not excluded from the scope. There are also limited amendments to the impairment model for available-for-sale debt securities. ASU 2016-13 is effective for annual reporting periods beginning after December 15, 2022 for public smaller reporting companies, including interim reporting periods within those fiscal years. Early adoption is permitted, but not before annual reporting periods beginning after December 15, 2018. Management is currently evaluating the impact that the adoption of ASU 2016-13 will have on the Company’s consolidated financial statements.

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	Dec. 31, 2022
Accounting Policies [Abstract]
Schedule of cash and cash equivalents	Schedule of cash and cash equivalents 2022 2021 Cash and Cash Equivalents $ 7,776,789 $ 9,137,672 Restricted Cash 10,583,641 10,343,671 $ 18,360,430 $ 19,481,343

CONTINGENT LIABILITY (Tables)

CONTINGENT LIABILITY (Tables)	12 Months Ended
CONTINGENT LIABILITY (Tables)	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Schedule of unpaid contingent liability outstanding	Schedule of unpaid contingent liability outstanding 2022 2021 Contingent liability to redeem J.W. Korth Preferred Capital Interest Partners $ 320,500 $ 480,751 Accrued and unpaid dividends recorded as interest expense 6,798 9,201 Contingent Liability, net $ 327,298 $ 489,952

MORTGAGE SECURED NOTES PAYABLE

MORTGAGE SECURED NOTES PAYABLE (Tables)	12 Months Ended
MORTGAGE SECURED NOTES PAYABLE (Tables)	Dec. 31, 2022
Debt Disclosure [Abstract]
Schedule of future maturities	Schedule of future maturities Years ending December 31 Future Maturities of Debt 2023 $ 12,528,434 2024 107,637,351 2025 94,801,469 2026 117,381,015 2027 87,527,854 Thereafter 35,006,888 Total $ 454,883,011

ACQUISITION OF RENTAL PROPERTY

ACQUISITION OF RENTAL PROPERTY (Tables)	12 Months Ended
ACQUISITION OF RENTAL PROPERTY (Tables)	Dec. 31, 2022
Acquisition Of Rental Property
Schedule of fair value of net assets acquired:	Schedule of fair value of net assets acquired: Fair value of Net Assets Acquired: Cash $ 74,381 Restricted cash 296,615 Building and land 17,900,000 Acquired operating leases 1,142,511 Mortgage liability assumed (9,500,000 ) Net Assets Acquired 9,913,507 Less: Investment in special-purpose entity (7,500,000 ) Gain on Settlement Agreement $ 2,413,507

COMMITMENTS (Tables)

COMMITMENTS (Tables)	12 Months Ended
COMMITMENTS (Tables)	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Schedule of future minimum rental payments for operating leases	Schedule of future minimum rental payments for operating leases Future Lease 2023 $256,920 2024 264,087 2025 271,470 2026 30,504 Total Lease Payments 822,981 Less: Imputed Interest (53,997) Present Value of Lease Liabilities $768,984

DEFERRED REVENUE, NET (Tables)

DEFERRED REVENUE, NET (Tables)	12 Months Ended
DEFERRED REVENUE, NET (Tables)	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Schedule of loan originating fees and costs deferred and amortized	Schedule of loan originating fees and costs deferred and amortized Deferred Origination Deferred Deferred Deferred Revenue at December 31, 2021 $ 4,226,325 $ (3,068,653 ) $ 1,157,672 New loan deferrals 2,636,924 (1,807,399 ) 829,525 - Amortization of deferrals (1,434,426 ) 1,041,098 (393,328 ) Deferred Revenue at December 31, 2022 $ 5,428,823 $ (3,834,954 ) $ 1,593,869 Deferred Origination Deferred Deferred Deferred Revenue at December 31, 2020 $ 2,617,443 $ (2,117,313 ) $ 500,130 New loan deferrals 2,670,027 (1,649,782 ) 1,020,245 Amortization of deferrals (1,061,145 ) 698,442 (362,703 ) Deferred Revenue at December 31, 2021 $ 4,226,325 $ (3,068,653 ) $ 1,157,672

EMPLOYEE AND DIRECTOR STOCK O_2

EMPLOYEE AND DIRECTOR STOCK OPTIONS (Tables)	12 Months Ended
EMPLOYEE AND DIRECTOR STOCK OPTIONS (Tables)	Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]
Schedule of estimated fair value of stockoptions weighted-average assumptions	Schedule of estimated fair value of stockoptions weighted-average assumptions Risk-free interest rate: 3.62 Expected term: 5.78 Expected dividend yield: 0 Expected volatility: 51.68
Schedule of stock option activity	Schedule of stock option activity 2019 Stock Option Plan: Shares Weighted Weighted Options outstanding at January 1, 2021 835,000 $ 1.00 8.5 Granted - Exercised - Expired or forfeited - Options outstanding at December 31, 2021 835,000 $ 1.00 7.5 Granted 255,000 3.00 Exercised - Expired or forfeited - Options outstanding at December 31, 2022 1,090,000 $ 1.47 7.75 Options exercisable at December 31, 2022 962,500 $ 1.12 7.3 Options expected to vest at December 31, 2022 127,500 $ 3.00 9.0

PREFERRED EQUITY (Tables)

PREFERRED EQUITY (Tables)	12 Months Ended
PREFERRED EQUITY (Tables)	Dec. 31, 2022
Equity [Abstract]
Schedule of dividend paid	Schedule of dividend paid Series A Series B Total Preferred Accrued Preferred Dividends, January 1, 2021 $ 12,500 $ - $ 12,500 Declared Dividends 337,500 569,472 906,972 Paid Dividends (337,500 ) (363,639 ) (701,139 ) Accrued Preferred Dividends, December 31, 2021 12,500 205,833 218,333 Declared Dividends 450,000 1,289,899 1,739,899 Paid Dividends (450,000 ) (1,235,000 ) (1,685,000 ) Accrued Preferred Dividends, December 31, 2022 $ 12,500 $ 260,732 $ 273,232

FAIR VALUE (Tables)

FAIR VALUE (Tables)	12 Months Ended
FAIR VALUE (Tables)	Dec. 31, 2022
Fair Value Disclosures [Abstract]
Schedule of fair value, assets and liabilities measured on recurring basis	Schedule of fair value, assets and liabilities measured on recurring basis December 31, 2022 Total Level I Level II Level III Financial Assets Mortgages Owned $ 447,407,141 $ - $ 447,407,141 $ - Mortgage Servicing 13,229,889 - - 13,229,889 Portfolio Loans 3,318,832 - 3,318,832 - Securities 342,826 - 342,826 - Non-MSN Securities 225,000 - - 225,000 Total Financial Assets $ 464,523,688 $ - $ 451,068,799 $ 13,454,889 Financial Liabilities Mortgage Secured Notes Payable $ 454,883,011 $ - $ 454,883,011 $ - Warehouse Line of Credit 1,560,000 - 1,560,000 - Total Financial Liabilities $ 456,443,011 $ - $ 456,443,011 $ - December 31, 2021 Financial Assets Mortgages Owned $ 326,312,345 $ - $ 326,312,345 $ - Mortgage Servicing 9,616,357 - - 9,616,357 Portfolio Loans 14,749,862 - 14,749,862 - Non-MSN Securities 225,006 - - 225,006 Total Financial Assets $ 350,903,570 $ - $ 341,062,207 $ 9,841,363 Financial Liabilities Mortgage Secured Notes Payable $ 326,212,364 $ - $ 326,212,364 $ -
Schedule of quantitative information	Schedule of quantitative information 2022 Investment type Fair Value Valuation technique Unobservable inputs Values Mortgage servicing $ 13,229,889 Net Present Value Prepayment Discount 7.64 % Securities $ 342,826 Net Present Value Non-MSN Securities $ 225,000 Net Present Value Discount rate 15.00 % 2021 Investment type Fair Value Valuation technique Unobservable inputs Values Mortgage servicing $ 9,616,357 Net Present Value Prepayment Discount 15.67 % Non-MSN Securities $ 225,006 Net Present Value Discount rate 15.00 %

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
INCOME TAXES (Tables)	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Schedule of income tax expense	Schedule of income tax expense 2022 2021 Deferred income tax expense: Federal $ 1,007,745 $ 1,142,172 State 279,295 316,550 Total deferred income tax expense $ 1,287,040 $ 1,458,722 Total income tax expense $ 1,287,040 $ 1,458,722
Schedule of income before taxes	Schedule of income before taxes 2022 2021 Computed “expected” income tax expense $ 1,023,439 21 % $ 1,235,952 21 % State income taxes, net of federal benefit 220,643 4.5 % 250,075 4.2 % PPP loan forgiveness - 0.0 % (33,936 ) -0.6 % Non-deductible expenses 42,740 0.9 % 17,038 0.3 % Other, net 218 0.0 % (10,407 ) -0.1 % Total income tax expense $ 1,287,040 26.4 % $ 1,458,722 24.8 %
Schedule of deferred tax assets and liabilities	Schedule of deferred tax assets and liabilities 2022 2021 Deferred tax assets: Deferred revenue, net $ 403,966 $ 293,412 Deferred rent from operating leases 11,609 13,308 Net operating loss carry-forwards 138,424 - Deferred tax assets - current 553,999 306,720 Less: Valuation allowance - - Net deferred tax assets $ 553,999 $ 306,720 Deferred tax liabilities: Fixed assets/depreciation (75,867 ) (74,900 ) Unrealized (loss) on mortgage secured notes (3,967 ) (434 ) Realized (gain) on foreclosure (611,703 ) - Unrealized gain on accrued interest (2,475 ) (208 ) Unrealized gain on mortgages (3,197,248 ) (2,281,398 ) Deferred tax liability $ (3,891,260 ) $ (2,356,940 ) Net deferred tax asset (liability), net $ (3,337,261 ) $ (2,050,220 )

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	12 Months Ended
PROPERTY AND EQUIPMENT (Tables)	Dec. 31, 2022
Property, Plant and Equipment [Abstract]
Schedule of property and equipment	Schedule of property and equipment Land & Building $ 17,900,000 Equipment 276,358 Furniture and fixtures 183,760 18,360,118 Accumulated depreciation (187,814 ) Net Property Equipment $ 18,172,304 2021 Equipment $ 210,953 Furniture and fixtures 178,672 389,625 Accumulated depreciation (85,422 ) Net Property Equipment $ 304,203

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Accounting Policies [Abstract]
Cash and Cash Equivalents	$ 7,776,789	$ 9,137,672
Restricted Cash	10,583,641	10,343,671
Cash, Cash Equivlents and Restricted Cash	$ 18,360,430	$ 19,481,343

SUMMARY OF SIGNIFICANT ACCOUN_5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
FDIC Insured Amount	$ 250,000
Mortgage secured notes funded	447,407,141	$ 326,312,345
Mortgage second secured notes funded	454,883,011	326,212,364
Portfolio loans	3,318,832	$ 14,749,862
Rental income	93,126
Due to clearinghouse brokers	$ 13,700
Minimum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	three
Maximum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	seven

CONTINGENT LIABILITY (Details)

CONTINGENT LIABILITY (Details) - USD ($)	12 Months Ended
CONTINGENT LIABILITY (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Contingent liability to redeem J.W. Korth Preferred Capital Interest Partners	$ 320,500	$ 480,751
Accrued and unpaid dividends recorded as interest expense	6,798	9,201
Contingent Liability, net	$ 327,298	$ 489,952

CONTINGENT LIABILITY (Details N

CONTINGENT LIABILITY (Details Narrative) - Michigan Limited Partnership [Member]	12 Months Ended
	Dec. 31, 2022
Restructuring Cost and Reserve [Line Items]
Dividend rate	6%
Dividends payable, date to be paid	Jul. 31, 2020
Series A Preferred Stock [Member]
Restructuring Cost and Reserve [Line Items]
Dividend rate	25%

MORTGAGE SECURED NOTES PAYABL_2

MORTGAGE SECURED NOTES PAYABLE (Details)	Dec. 31, 2022 USD ($)
Debt Disclosure [Abstract]
2023	$ 12,528,434
2024	107,637,351
2025	94,801,469
2026	117,381,015
2027	87,527,854
Thereafter	35,006,888
Total	$ 454,883,011

MORTGAGE SECURED NOTES PAYABL_3

MORTGAGE SECURED NOTES PAYABLE (Details Narrative) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Funded loans	$ 447,407,141	$ 326,312,345
Secured loans	$ 454,883,011	$ 326,212,345
Minimum [Member]
Debt Instrument [Line Items]
Interest Percentage	4.25%
Maximum [Member]
Debt Instrument [Line Items]
Interest Percentage	8.239%

RESTRICTED CASH AND INVESTMEN_2

RESTRICTED CASH AND INVESTMENTS (Details Narrative) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Cash	$ 8,000,000
Restricted Investment	3,986,207
Warehouse Line Agreement [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Account restricted per the warehouse line agreement	1,000,000
Series B Preferred Stock [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Escrow deposit	308,750	$ 308,750
In Trust For 1 [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Account balance	626,414	9,519,859
In Trust For 2 [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Account balance	752,156	421,286
Multiple Lockbox [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Account balance	$ 100,359	$ 93,775

ACQUISITION OF RENTAL PROPERT_2

ACQUISITION OF RENTAL PROPERTY (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Restructuring Cost and Reserve [Line Items]
Net income attributable to non-controlling interest	$ 238,643
K D M Stafford L L C [Member]
Restructuring Cost and Reserve [Line Items]
Net income attributable to non-controlling interest	238,643
Gain on Settlement Agreement	$ 2,413,507

COMMITMENTS (Details)

COMMITMENTS (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
2023	$ 256,920
2024	264,087
2025	271,470
2026	30,504
Total Lease Payments	822,981
Less: Imputed Interest	(53,997)
Present Value of Lease Liabilities	$ 768,984	$ 981,418

COMMITMENTS (Details Narrative)

COMMITMENTS (Details Narrative) - USD ($)	12 Months Ended
COMMITMENTS (Details Narrative) - USD ($)	Dec. 31, 2022	Dec. 31, 2021	Apr. 30, 2021
Defined Benefit Plan Disclosure [Line Items]
Rent expense	$ 263,523	$ 273,926
Weighted-average discount rate	4.24%
Weighted-average remaining life	3 years 1 month 6 days
Present value of lease liabilities	$ 768,984	$ 981,418
J W Korth [Member]
Defined Benefit Plan Disclosure [Line Items]
PPP loan payable			$ 161,600

CUSTOMERS (Details Narrative)

CUSTOMERS (Details Narrative)	12 Months Ended
CUSTOMERS (Details Narrative)	Dec. 31, 2022
Risks and Uncertainties [Abstract]
Number of customer	forty-one

DEFERRED REVENUE, NET (Details)

DEFERRED REVENUE, NET (Details) - USD ($)	12 Months Ended
DEFERRED REVENUE, NET (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Deferred origination fees	$ 5,428,823	$ 4,226,325	$ 2,617,443
Deferred origination costs	(3,834,954)	(3,068,653)	(2,117,313)
Deferred revenue, net	1,593,869	1,157,672	$ 500,130
New Loan Deferrals [Member]
Deferred origination fees	2,636,924	2,670,027
Deferred origination costs	(1,807,399)	(1,649,782)
Deferred revenue, net	829,525	1,020,245
Amortization Of Deferrals [Member]
Deferred origination fees	(1,434,426)	(1,061,145)
Deferred origination costs	1,041,098	698,442
Deferred revenue, net	$ (393,328)	$ (362,703)

EMPLOYEE AND DIRECTOR STOCK O_3

EMPLOYEE AND DIRECTOR STOCK OPTIONS (Details)	12 Months Ended
EMPLOYEE AND DIRECTOR STOCK OPTIONS (Details)	Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]
Risk-free interest rate:	3.62%
Expected term:	5 years 9 months 10 days
Expected dividend yield:	0%
Expected volatility:	51.68%

EMPLOYEE AND DIRECTOR STOCK O_4

EMPLOYEE AND DIRECTOR STOCK OPTIONS (Details 1) - $ / shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-Based Payment Arrangement [Abstract]
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number, Beginning Balance	835,000	835,000
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Beginning Balance	$ 1	$ 1
Weighted remaining contractual life (years)	7 years 9 months	7 years 6 months	8 years 6 months
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross	255,000
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Forfeitures and Expirations in Period
Share-Based Compensation Arrangements by Share-Based Payment Award, Options, Grants in Period, Weighted Average Exercise Price	$ 3
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number, Ending Balance	1,090,000	835,000	835,000
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Ending Balance	$ 1.47	$ 1	$ 1
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Number	962,500
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Weighted Average Exercise Price	$ 1.12
Option exercisable, weighted remaining contractual life (years)	7 years 3 months 18 days
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number	127,500
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price	$ 3
Options expected to vest, weighted remaining contractual life (years)	9 years

EMPLOYEE AND DIRECTOR STOCK O_5

EMPLOYEE AND DIRECTOR STOCK OPTIONS (Details Narrative) - USD ($)		12 Months Ended
	Jun. 28, 2019	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of shares to purchase		255,000
Common stock, par value (in dollars per share)		$ 0.001	$ 0.001
Share price (in dollars per share)		3
Weighted-average grant date fair values		$ 1.2160
Stock based compensation		$ 171,282	$ 25,812
Unrecognized compensation expense		$ 151,708	$ 12,908
Non-vested employee stock options term		7 years 9 months	7 years 6 months	8 years 6 months
N 2019 Stock Option Plan [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock based compensation		$ 171,282	$ 25,812
Non-vested employee stock options term		3 years	6 months
Director [Member] \| N 2019 Stock Option Plan [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of shares to purchase	3,000,000
Common stock, par value (in dollars per share)	$ 0.001

PREFERRED EQUITY (Details)

PREFERRED EQUITY (Details) - USD ($)	12 Months Ended
PREFERRED EQUITY (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Class of Stock [Line Items]
Accrued Preferred Dividends at begiining	$ 218,333	$ 12,500
Declared Dividends	1,739,899	906,972
Paid Dividends	(1,685,000)	(701,139)
Accrued Preferred Dividends at end	273,232	218,333
Series A Preferred Stock [Member]
Class of Stock [Line Items]
Accrued Preferred Dividends at begiining	12,500	12,500
Declared Dividends	450,000	337,500
Paid Dividends	(450,000)	(337,500)
Accrued Preferred Dividends at end	12,500	12,500
Series B Preferred Stock [Member]
Class of Stock [Line Items]
Accrued Preferred Dividends at begiining	205,833
Declared Dividends	1,289,899	569,472
Paid Dividends	(1,235,000)	(363,639)
Accrued Preferred Dividends at end	$ 260,732	$ 205,833

PREFERRED EQUITY (Details Narra

PREFERRED EQUITY (Details Narrative) - USD ($)				12 Months Ended
PREFERRED EQUITY (Details Narrative) - USD ($)	Aug. 12, 2022	Jun. 29, 2021	Sep. 27, 2019	Dec. 31, 2022	Dec. 31, 2021
Class of Stock [Line Items]
Series A preferred stock (in shares)				255,000
Intrest expense				$ 1,344,907	$ 119,645
Series A Cumulative Perpetual Convertible Preferred Stock [Member]
Class of Stock [Line Items]
Issue of shares			200,000
Proceeds from issuance of shares			$ 4,750,000
Conversion description			convertible into common stock at a ratio of 5 shares of common stock for each share of Series A Preferred Stock.
Intrest expense	$ 640,000
Series A Cumulative Perpetual Convertible Preferred Stock [Member] \| Subsidiaries [Member]
Class of Stock [Line Items]
Prepaid Expenses			$ 250,000
Amount of conversion			$ 25
Series A Preferred Stock [Member]
Class of Stock [Line Items]
Series A preferred stock (in shares)	480,000
Preferred stock, par value	$ 25.25			$ 0.001	$ 0.001
Series A preferred stock value	$ 12,120,480
Series B Cumulative Perpetual Convertible Preferred Stock [Member]
Class of Stock [Line Items]
Issue of shares		19,000
Proceeds from issuance of shares		$ 18,302,500
Stock issuance cost		$ 697,500
Preferred Stock, Redemption Price Per Share				1,000
Series B Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, par value				$ 0.001	$ 0.001
Percentage of dividend payable if and when declared				6.50%

FAIR VALUE (Details)

FAIR VALUE (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities	$ 567,826	$ 225,006
Fair Value, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgages Owned	447,407,141	326,312,345
Mortgage Servicing	13,229,889	9,616,357
Portfolio Loans	3,318,832	14,749,862
Securities	342,826
Non- MSN Securities	225,000	225,006
Total Financial Assets	464,523,688	350,903,570
Mortgage Secured Notes Payable	454,883,011	326,212,364
Warehouse Line of Credit	1,560,000
Total Financial Liabilities	456,443,011
Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgages Owned
Mortgage Servicing
Portfolio Loans
Securities
Non- MSN Securities
Total Financial Assets
Mortgage Secured Notes Payable
Warehouse Line of Credit
Total Financial Liabilities
Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgages Owned	447,407,141	326,312,345
Mortgage Servicing
Portfolio Loans	3,318,832	14,749,862
Securities	342,826
Non- MSN Securities
Total Financial Assets	451,068,799	341,062,207
Mortgage Secured Notes Payable	454,883,011	326,212,364
Warehouse Line of Credit	1,560,000
Total Financial Liabilities	456,443,011
Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgages Owned
Mortgage Servicing	13,229,889	9,616,357
Portfolio Loans
Securities
Non- MSN Securities	225,000	225,006
Total Financial Assets	13,454,889	9,841,363
Mortgage Secured Notes Payable
Warehouse Line of Credit

FAIR VALUE (Details 2)

FAIR VALUE (Details 2) - Fair Value, Recurring [Member]	12 Months Ended
FAIR VALUE (Details 2) - Fair Value, Recurring [Member]	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	$ 13,229,889	$ 9,616,357
Mortgage Servicing [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	$ 13,229,889	$ 9,616,357
Valuation technique	Net Present Value	Net Present Value
Unobservable inputs	Prepayment Discount	Prepayment Discount
Servicing Asset, Measurement Input	0.0764	0.1567
Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	$ 342,826
Valuation technique	Net Present Value
Non Msn Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	$ 225,000	$ 225,006
Valuation technique	Net Present Value	Net Present Value
Unobservable inputs		Discount rate
Servicing Asset, Measurement Input	0.1500	0.1500

FAIR VALUE (Details Narrative)

FAIR VALUE (Details Narrative) - USD ($)	12 Months Ended
FAIR VALUE (Details Narrative) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Beginning balance at beginning	$ 9,841,363	$ 4,193,522
Sales	(6)	(1,995,081)
Unrealized Gain from newly issued mortgages	4,187,817	6,773,689
Fair Value adjustment	(574,285)	(1,018,932)
Ending balance at ending	13,454,889	9,841,363
Purchases		1,973,430
Trades		6
Eliminating entry		(99,981)
Net realized gain/loss or Interest income		14,710
Securities [Member]
Debt Instrument [Line Items]
Beginning balance at beginning		329,106
Ending balance at ending	225,000
Securities [Member] \| J W Korth [Member]
Debt Instrument [Line Items]
Default bonds amount	225,000
Mortgages [Member]
Debt Instrument [Line Items]
Beginning balance at beginning	9,616,357	3,864,416
Sales
Unrealized Gain from newly issued mortgages	4,187,817	6,773,689
Fair Value adjustment	(574,285)	(1,021,748)
Ending balance at ending	13,229,889	9,616,357
Purchases
Trades
Eliminating entry
Net realized gain/loss or Interest income
Non Msn Securities [Member]
Debt Instrument [Line Items]
Beginning balance at beginning	225,006
Sales	(6)	(1,995,081)
Unrealized Gain from newly issued mortgages
Fair Value adjustment		2,816
Ending balance at ending		225,006
Purchases		1,973,430
Trades		6
Eliminating entry		(99,981)
Net realized gain/loss or Interest income		$ 14,710

WAREHOUSE LINE OF CREDIT (Detai

WAREHOUSE LINE OF CREDIT (Details Narrative)	12 Months Ended
WAREHOUSE LINE OF CREDIT (Details Narrative)	Dec. 31, 2022 USD ($)
Warehouse Line Of Credit
Loans fees	$ 1,589,783
Warehouse costs	1,560,000
Interest expense	$ 356,519

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	12 Months Ended
INCOME TAXES (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Deferred income tax expense:
Federal	$ 1,007,745	$ 1,142,172
State	279,295	316,550
Total deferred income tax expense	1,287,040	1,458,722
Total income tax expense	$ 1,287,040	$ 1,458,722

INCOME TAXES (Details 1)

INCOME TAXES (Details 1) - USD ($)	12 Months Ended
INCOME TAXES (Details 1) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Computed "expected" income tax expense	$ 1,023,439	$ 1,235,952
Computed "expected" income tax expense, percent	21%	21%
State income taxes, net of federal benefit	$ 220,643	$ 250,075
State income taxes, net of federal benefit, percent	4.50%	4.20%
PPP loan forgiveness		$ (33,936)
PPP loan forgiveness, percent	0%	(0.60%)
Non-deductible expenses	$ 42,740	$ 17,038
Non-deductible expenses, percent	0.90%	0.30%
Other, net	$ 218	$ (10,407)
Other, net, percent	0%	(0.10%)
Total income tax expense	$ 1,287,040	$ 1,458,722
Total income tax expense, percent	26.40%	24.80%

INCOME TAXES (Details 2)

INCOME TAXES (Details 2) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Deferred tax assets:
Deferred revenue, net	$ 403,966	$ 293,412
Deferred rent from operating leases	11,609	13,308
Net operating loss carry-forwards	138,424
Deferred tax assets - current	553,999	306,720
Less: Valuation allowance
Net deferred tax assets	553,999	306,720
Deferred tax liabilities:
Fixed assets/depreciation	(75,867)	(74,900)
Unrealized (loss) on mortgage secured notes	(3,967)	(434)
Realized (gain) on foreclosure	(611,703)
Unrealized gain on accrued interest	(2,475)	(208)
Unrealized gain on mortgages	(3,197,248)	(2,281,398)
Deferred tax liability	(3,891,260)	(2,356,940)
Net deferred tax asset (liability), net	$ (3,337,261)	$ (2,050,220)

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Net operating losses	$ 546,160
Net deferred tax assets	$ 553,999	$ 306,720

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Total	$ 18,360,118	$ 389,625
Accumulated depreciation	(187,814)	(85,422)
Net property equipment	18,172,304	304,203
Land and Building [Member]
Property, Plant and Equipment [Line Items]
Total	17,900,000
Equipment [Member]
Property, Plant and Equipment [Line Items]
Total	276,358	210,953
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Total	$ 183,760	$ 178,672

PROPERTY AND EQUIPMENT (Detai_2

PROPERTY AND EQUIPMENT (Details Narrative) - USD ($)	12 Months Ended
PROPERTY AND EQUIPMENT (Details Narrative) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Abstract]
Depreciation Expense	$ 117,704	$ 44,626

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative) - USD ($)		1 Months Ended		3 Months Ended	12 Months Ended
SUBSEQUENT EVENTS (Details Narrative) - USD ($)	Mar. 15, 2023	Apr. 15, 2023	Mar. 23, 2023	Mar. 31, 2023	Dec. 31, 2022
Subsequent Event [Line Items]
Payments for Loans					$ 1,589,783
Subsequent Event [Member]
Subsequent Event [Line Items]
Payments for Loans				$ 55,000,000
Subsequent Event [Member] \| Series A Preferred Stock [Member]
Subsequent Event [Line Items]
Stock dividend paid	$ 112,500
Stock isuued and sold			160,000
Subsequent Event [Member] \| Series B Preferred Stock [Member]
Subsequent Event [Line Items]
Stock dividend paid		$ 308,750