Korth Direct Mortgage 10-Q 11 Aug 23 2023 Q2 Quarterly report Financial data

Cover

Cover	6 Months Ended
	Jun. 30, 2023 shares
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2023
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2023
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 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 Common Stock, Shares Outstanding	5,000,000

UNAUDITED CONSOLIDATED STATEMEN

UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($)	Jun. 30, 2023	Dec. 31, 2022
ASSETS
Cash and Cash Equivalents	$ 8,273,944	$ 7,776,789
Restricted Cash	19,770,822	10,583,641
Restricted Investment	2,500,000	3,986,207
Mortgages Owned	485,500,864	447,407,141
Mortgage Servicing Rights, at Fair Value	13,320,179	13,229,889
Portfolio Loans	5,613,038	3,318,832
Securities	225,000	567,826
ROU Leased Asset	613,620	723,179
Goodwill	110,000	110,000
Property and equipment, net of depreciation	17,936,403	18,172,304
Other Assets	2,884,232	1,673,353
TOTAL ASSETS	556,748,102	507,549,161
LIABILITIES
Escrows Payable	20,145,664	12,421,553
Lease Liability	656,196	768,984
Deferred Revenue, net	1,840,864	1,593,869
Deferred Tax Liability, net	3,165,348	3,337,261
Contingent Liability, net	327,298	327,298
Mortgage Secured Notes Payable	494,124,386	454,883,011
Warehouse Line of Credit, net		326,736
Other Liabilities and Payables	1,670,371	1,526,488
Total Liabilities	521,930,127	475,185,200
STOCKHOLDERS' EQUITY
Accumulated Earnings	5,039,800	6,493,385
Additional Paid-in Capital	29,551,928	25,626,614
Common Stock, $0.001 par value, 60,000,000 shares authorized 5,000,000 shares issued and outstanding at June 30, 2023 and December 31, 2022	5,000	5,000
Non-Controlling Interest	220,768	238,643
Total Stockholders' Equity	34,817,975	32,363,961
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	556,748,102	507,549,161
Series A Preferred Stock [Member]
STOCKHOLDERS' EQUITY
Preferred stock value	460	300
Series B Preferred Stock [Member]
STOCKHOLDERS' EQUITY
Preferred stock value	$ 19	$ 19

UNAUDITED CONSOLIDATED STATEM_2

UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - $ / shares	Jun. 30, 2023	Dec. 31, 2022
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	60,000,000	60,000,000
Common stock, shares issued	5,000,000	5,000,000
Common stock, shares 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	460,000	460,000
Preferred stock, shares issued	460,000	300,000
Preferred stock, shares outstanding	460,000	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

UNAUDITED CONSOLIDATED STATEM_3

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
REVENUES
Total Revenues	$ 4,862,296	$ 5,072,184
COST OF REVENUES
Broker Underwriting Expense	924,880	976,636
Administrative Expenses	723,630	490,060
Total Cost of Revenues	1,648,510	1,466,696
GROSS PROFIT	3,213,786	3,605,488
OPERATING EXPENSES
Office	422,163	235,073
Compensation and Related Benefits	2,120,429	2,111,392
Professional & Legal	263,460	420,311
Advertising	179,901	173,475
Depreciation & Amortization	332,159	34,407
Total Expenses	3,318,112	2,974,658
(Loss)/Gain From Operations	(104,326)	630,830
Other (Expenses)/Income
Unrealized Gain on Mortgages	90,290	3,577,109
Unrealized Gain on Mortgage Secured Notes	66,470	76,004
Interest Expense	(793,307)	(106,914)
Total Other (Expense)/Income	(636,547)	3,546,199
(Loss)/Income before provision for income taxes	(740,873)	4,177,029
Provision for income taxes	(171,913)	1,067,117
Net (Loss)/Income before non-controlling interest	(568,960)	3,109,912
Net Loss attributable to non-controlling interest	(17,875)
Net (Loss)/ Income	(551,085)	3,109,912
Series A Preferred Dividends	285,000	225,000
Series B Preferred Dividends	617,500	672,399
Net (Loss)/Income attributable to common stockholders	(1,453,585)	2,212,513
Origination Revenue [Member]
REVENUES
Total Revenues	729,507	730,012
Service [Member]
REVENUES
Total Revenues	2,807,076	3,022,146
Underwriting Income [Member]
REVENUES
Total Revenues	229,000	427,400
Leasing Revenue [Member]
REVENUES
Total Revenues	596,782
Other Revenue [Member]
REVENUES
Total Revenues	$ 499,931	$ 892,626

UNAUDITED CONSOLIDATED STATEM_4

UNAUDITED 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, 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				12,906			12,906
Series A & Series B preferred stock dividends declared					(897,399)		(897,399)
Sale of Series A preferred stock	$ 480			11,855,520			11,856,000
Sale of Series A preferred stock, shares	480,000
Net (loss)/income					3,109,912		3,109,912
Ending balance, value at Jun. 30, 2022	$ 780	$ 19	$ 5,000	37,587,758	7,097,958		44,691,515
Ending balance, shares at Jun. 30, 2022	780,000	19,000	5,000,000
Beginning 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
Share-based compensation				29,474			29,474
Issuance of Series A preferred stock	$ 160			3,895,840			3,896,000
Issuance of Series A preferred stock, shares	160,000
Series A & Series B preferred stock dividends declared					(902,500)		(902,500)
Net (loss)/income					(551,085)	(17,875)	(568,960)
Ending balance, value at Jun. 30, 2023	$ 460	$ 19	$ 5,000	$ 29,551,928	$ 5,039,800	$ 220,768	$ 34,817,975
Ending balance, shares at Jun. 30, 2023	460,000	19,000	5,000,000

UNAUDITED CONSOLIDATED STATEM_5

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net (Loss)/Income	$ (568,960)	$ 3,109,912
Adjustments to Reconcile Net (Loss)/Income to Net Cash Provided by/(Used In) Operating Activities:
Unrealized Gain on Mortgages Owned	(90,290)	(3,577,109)
Unrealized Gain on Mortgage Secured Notes	(66,470)	(76,004)
Stock Compensation Expense	29,474	12,906
Depreciation and amortization	332,159	34,407
Amortization of loan costs	264,966	94,556
Deferred rent expense from operating lease	(3,229)	241
Deferred income taxes	(171,913)	651,023
Changes in Operating Assets and Liabilities:
Mortgage Secured Notes Issued	39,241,375	60,122,855
Mortgage Secured Notes Purchased	409,296	(23,990)
Restricted Investment	1,486,207
Warehouse LOC	(591,702)	34,548,995
Portfolio Loans	(2,294,206)	(9,147,202)
Other Assets	(1,282,190)	(261,187)
Deferred Revenue, net	246,995	1,083,466
Escrow Payable	7,724,111	1,943,715
Other Liabilities and Payables	143,883	1,100,390
New Mortgage Lending	(38,093,723)	(90,790,074)
Total Adjustments	7,284,743	(4,283,012)
NET CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES	6,715,783	(1,173,100)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment	(24,946)	(22,459)
NET CASH USED IN INVESTING ACTIVITIES	(24,946)	(22,459)
CASH FLOWS FROM FINANCING ACTIVITIES
Payment of Series A/B preferred stock dividends	(902,500)	(842,500)
Net proceeds from the sale of Series A preferred stock	3,896,000	11,856,000
NET CASH PROVIDED BY FINANCING ACTIVITIES	2,993,500	11,013,500
NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	9,684,336	9,817,941
CASH, CASH EQUIVALENTS AND RESTRICTED CASH – Beginning of Period	18,360,430	19,481,343
CASH, CASH EQUIVALENTS AND RESTRICTED CASH – End of Period	28,044,766	29,299,284
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION
Cash paid during the year for interest	528,341	12,358
Cash paid for income taxes		$ 77,798

NATURE OF BUSINESS

NATURE OF BUSINESS	6 Months Ended
	Jun. 30, 2023
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 (the “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. On July 28, 2022, KDM created a new wholly owned subsidiary, KDM Funding I LLC (“KDMF”), which is an additional issuer of Mortgage Secured Notes (“MSNs”). KDM is the servicer of KDMF’s loans, and all revenue and expenses are passed through to the Company and consolidated within these financial statements. Although KDMF’s deal history is broken out by KDM and KDMF as issuers in KDM’s annual reports on Form 10-K as well as its securities memoranda there are no stand-alone financial statements prepared for KDMF. See the current report Form 8-K filed with the Commission on August 5, 2022, for more information concerning the business of KDMF. KDM owns a controlling interest in KDM Stafford LLC, which is a special purpose entity that owns a building KDM acquired in Virginia in November 2022. KDM also owns Citrus Servicing LLC, which is an entity that is a servicer for our small balance loan program. The Company may create and operate other special purpose and pass-through entities typically organized as limited liability companies in order to own real estate and issue additional securities. These entities will be consolidated into these financial statements and Notes.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES PRINCIPLES OF CONSOLIDATION The accompanying unaudited consolidated financial statements include the accounts of the Company and the accounts of the Company’s wholly owned subsidiaries J.W. Korth, KDM Stafford LLC and KDM Funding I LLC. All intercompany balances and transactions have been eliminated in consolidation. BASIS OF ACCOUNTING The accompanying unaudited consolidated financial statements have been prepared on the accrual basis of accounting in accordance with. Generally Accepted Accounting Principles (“GAAP”). The accompanying unaudited consolidated financial statements have also been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). 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 unaudited consolidated statements of financial condition, operations, changes in stockholders’ equity, and cash flows. Our interim period operating results do not necessarily indicate the results that may be expected for any other interim period or for the full fiscal year. These unaudited consolidated financial statements and accompanying notes should be read in conjunction with the consolidated financial statements and notes thereto in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022, as filed with the SEC on March 31, 2023. USE OF ESTIMATES The preparation of unaudited consolidated 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 consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. CASH AND CASH EQUIVALENTS For purposes of the statements 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 unaudited consolidated statements of cash flows as of June 30, 2023, and 2022: Schedule of cash and cash equivalents 2023 2022 Cash and Cash Equivalents $ 8,273,944 $ 4,436,479 Restricted Cash 19,770,822 24,862,805 $ 28,044,766 $ 29,299,284 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 unaudited consolidated financial statements, according to the amortization schedule for the loan. Mortgages owned as of the date of these unaudited consolidated financial statements are current. The net present value of the servicing revenue is recorded as mortgage servicing rights at fair value on the Unaudited Consolidated Statements of Financial Condition and the change in the fair value is recognized on the Unaudited Consolidated Statements of Operations as an unrealized gain on mortgages. MORTGAGE SECURED NOTES The Company primarily funds the mortgage loans (”CM Loans”) that it makes by issuing MSNs in series, each of which MSN series is secured by the mortgage or mortgages funded from proceeds of the MSN series. Our MSNs have been funded in multiple ways, including private placements, SEC registered offerings, loan participations, and Rule 144A offerings. As of June 30, 2023, the Company has issued MSNs secured by these loans in the amount of $ 585,780,000 91,655,614 PORTFOLIO LOANS The Company recognizes loans made with its own capital, or those not securitized or sold via participation, under the caption “Portfolio Loans” on the unaudited consolidated statements of financial condition. This number also includes the cash we have invested in loans on our warehouse line as “haircut capital.” As of June 30, 2023, the Company had issued Portfolio Loans in the amount of $ 39,409,104 5,613,038 PARTICIPATIONS From time to time the Company sells all or part of its mortgage loans as loan participations to banks or other lending institutions that prefer to hold their mortgage investments in that manner. As of June 30, 2023, the Company had issued loan participations in the amount of $ 21,500,000 GOODWILL Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“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 ended June 30, 2023. REVENUE RECOGNITION The Company’s primary sources of revenue are 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 $ 596,782 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 unaudited consolidated 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 interest received from our CM Loans 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 unused fees are refunded. If the transaction is unable to proceed for any reason, which is not the fault of the Company, 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 the settlement date of the trades. Trading Profits Trading profits represent revenue generated through the trading of securities either for its own account or on behalf of J.W. Korth’s 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 Interest Income is primarily derived from interest earned on Portfolio Loans and includes interest earned on cash and securities. 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 unaudited consolidated statements of financial condition 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. The assumptions used in calculating the fair value of stock-based awards represent our best estimates, but these estimates involve inherent uncertainties and the application of management judgment. As a result, if factors change and we use different assumptions, our stock-based compensation expense could be materially different in the future. Unrealized Gain on Mortgages OWNED The net present value of the servicing income is recognized at the time the mortgage is initiated. This value uses several inputs that are highly subjective including: discount rate, prepayment rate, the current interest rate environment, and default rate assumptions. Since the Company has a short operating history and a small number of loans outstanding, we have a limited basis to predict prepayment rates and default rates. DEPRECIATION Depreciation is provided on a straight-line basis using estimated useful lives of three thirty-nine INCOME TAXES Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the unaudited consolidated 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 unaudited consolidated financial statements from such position are measured by 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. DEBT ISSUANCE COSTS Debt issuance costs are amortized over the term of the respective obligation, using the straight-line method. Amortization expense of debt issuance costs is recorded in interest expense in the unaudited consolidated statement of operations. 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. The Company adopted CECL in 2023 and did not have a material impact on the Company’s unaudited consolidated financial statements.

CONTINGENT LIABILITY

CONTINGENT LIABILITY	6 Months Ended
	Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
CONTINGENT LIABILITY	NOTE 3 – CONTINGENT LIABILITY As part of the acquisition of J. W. Korth, the Company agreed to pay (i) the Preferred Capital Interest partners of J.W. Korth accrued and unpaid dividends of 6% July 31, 2020 25% The following table summarizes the unpaid Contingent Liability outstanding as of June 30, 2023: Schedule of unpaid contingent liability outstanding Contingent liability to redeem J.W. Korth Preferred Capital Interest Partners $ 320,500 Accrued quarterly dividends recorded as interest expense through June 30, 2023 6,798 Contingent Liability, net $ 327,298

MORTGAGE SECURED NOTES PAYABLE

MORTGAGE SECURED NOTES PAYABLE	6 Months Ended
	Jun. 30, 2023
Debt Disclosure [Abstract]
MORTGAGE SECURED NOTES PAYABLE	NOTE 4 – MORTGAGE SECURED NOTES PAYABLE As stated in Note 2 the Company funds the majority of the mortgage loans that it makes by issuing MSNs, which are secured by those same mortgages. As of June 30, 2023 and December 31, 2022, the Company had outstanding loans securing MSNs totaling $ 485,500,864 447,407,141 494,124,386 454,883,011 The MSNs are typically five-year interest-only notes with the principal balance due at maturity, but terms can vary. Interest rates on the senior MSNs have ranged from 4.25% 8.82% The following table presents the future scheduled principal payments on the Company’s MSNs: Schedule of future maturities Years ending Future Last 6 months of 2023 $ 3,752,597 2024 102,896,351 2025 93,436,469 2026 116,831,015 2027 87,201,066 Thereafter 90,006,888 Total $ 494,124,386

RESTRICTED CASH

RESTRICTED CASH	6 Months Ended
	Jun. 30, 2023
Disclosure Restricted Cash Abstract
RESTRICTED CASH	NOTE 5 - RESTRICTED CASH The Company maintains multiple segregated accounts in trust for borrowers and investors. The value of these accounts is carried under the asset “Restricted Cash.” The “In Trust for 1” account holds the monthly tax and insurance payments collected from borrowers and distributes payments annually, on behalf of borrowers, to the appropriate tax authorities and insurance companies. This account corresponds to the Escrow Payable liability. As of June 30, 2023, and December 31, 2022, this account had balances of $ 286,262 626,414 The “In Trust for 2” account receives payments from borrowers, distributes payments to investors, and pays the servicing fees to the Company. This account corresponds to the Due to Investors liability, which is included in other liabilities and payables. As of June 30, 2023, and December 31, 2022, this account had balances of $ 816,407 752,156 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 as of June 30, 2023 and December 31, 2022, were $ 72,990 100,359 The Company maintains an account for payment of quarterly Preferred Series B dividends that has balances 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 balances of $ 3,852,329 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 $ 2,500,000 3,986,207 The Company invests a portion of the restricted cash collected from borrowers in a Certificate of Deposit and a savings account. These accounts have a balance of $ 3,250,000 250,000 The Company has opened a cash management account at J.W. Korth & Company that will hold a portion of restricted cash. The balances as of June 30, 2023, were $ 7,768,512 3,500,000

ACQUISITION OF RENTAL PROPERTY

ACQUISITION OF RENTAL PROPERTY	6 Months Ended
	Jun. 30, 2023
Acquisition Of Rental Property
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 maintains a minority interest in the special-purpose entity. For the quarter ended June 30, 2023, the Company recorded a net loss attributable to the non-controlling interest of $ 17,875

COMMITMENTS

COMMITMENTS	6 Months Ended
	Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS	NOTE 7 - COMMITMENTS The Company maintains office space in Coral Gables, Florida. In November 2020, the Company signed a lease for office space in Miami, Florida, for a term of sixty-two months with the right to extend the term of the lease for two additional, successive terms of two years upon the same terms and conditions as 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 terms. The Company also maintains an office in Lansing, Michigan for J.W. Korth. 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 unaudited 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. Rental expense for the quarter ended June 30, 2023, was $ 131,128 125,521 As of June 30, 2023, the net present value of the future lease liabilities, using the weighted-average discount rate of 4.24% 2.6 656,196 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 as of June 30, 2023: Schedule of future minimum rental payments for operating leases Future Lease Payments 2023 $ 128,858 2024 264,087 2025 271,470 2026 30,504 Total Lease Payments 694,919 Less: Imputed Interest (38,723) Present Value of Lease Liabilities $ 656,196

INDEMNIFICATIONS

INDEMNIFICATIONS	6 Months Ended
	Jun. 30, 2023
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 the Company will have to make material payments under these indemnification arrangements, and it has not recorded any contingent liability in the unaudited consolidated financial statements for these indemnifications.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	6 Months Ended
	Jun. 30, 2023
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 9 – RELATED PARTY TRANSACTIONS From time to time the Company purchases MSNs and holds them in its brokerage account. These MSNs are included on the unaudited consolidated statements of financial condition as mortgages owned. 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 and are serviced by KDM. In some circumstances where MSNs are in default, in the event a foreclosure becomes necessary, KDM may acquire properties as a deed in lieu of foreclosure. KDM may create special purpose entities to take title to such properties, liquidate them to satisfy any debts due under an MSN, or keep such properties and repay the MSN from its own funds. The Company has created one such special purpose entity to date, KDM Stafford. KDM Stafford owns one building located in Virginia, which the Company acquired through a deed in lieu of foreclosure.

DEFERRED REVENUE, NET

DEFERRED REVENUE, NET	6 Months Ended
	Jun. 30, 2023
Revenue Recognition and Deferred Revenue [Abstract]
DEFERRED REVENUE, NET	NOTE 10 – DEFERRED REVENUE, NET Loan origination fees are deferred and recognized as revenue over the life of the respective loan. The associated loan origination costs are also deferred and recognized as expense over the life of the loan. The deferred portion of the loan origination fees is netted against the deferred portion of the loan origination costs and reported as a net deferred revenue liability on the Company’s unaudited consolidated statements of financial condition. The following is a summary of the loan origination fees and costs deferred and amortized for the six months ended June 30, 2023: Schedule of loan originating fees and costs deferred and amortized Deferred Origination Fees Deferred Origination Costs Deferred Revenue, Net Deferred Revenue at December 31, 2022 $ 5,428,823 $ (3,834,954 ) $1,593,869 New loan deferrals 895,000 (405,595 ) 489,405 Amortization of deferrals (729,507 ) 487,097 (242,410) Deferred Revenue at June 30, 2023 $ 5,594,316 $ (3,753,452 ) $1,840,864

EMPLOYEE AND DIRECTOR STOCK OPT

EMPLOYEE AND DIRECTOR STOCK OPTIONS	6 Months Ended
	Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]
EMPLOYEE AND DIRECTOR STOCK OPTIONS	NOTE 11 – EMPLOYEE AND DIRECTOR STOCK OPTIONS On June 28, 2019, the Company’s Board of Directors adopted the 2019 Stock Option Plan (the “Incentive Plan”). The Incentive Plan provides for the grant of both incentive and non-statutory stock options to key employees, directors or other persons having a service relationship with the Company. Effective December 8, 2022, the Incentive Plan was amended to increase the number of authorized option shares to 3,000,00 0.001 During the year ended December 31, 2022, the Company issued options to purchase 255,000 3.00 1.2160 1.22999 Schedule of estimated fair value of stock options weighted-average assumptions YE 2022 June 2023 Risk-free interest rate: 3.62% 3.82% Expected term: 5.78 5.75 Expected dividend yield: 0% 0% Expected volatility: 51.68% 52.17% For the six months ended June 30, 2023, and June 30, 2022, the Company recorded $ 29,474 12,906 1,902,500 Stock option activity for the six months ended June 30, 2023, is summarized as follows: Schedule of stock option activity 2019 Stock Option Plan: Shares Weighted Weighted Options outstanding at January 1, 2023 1,090,000 $1.47 7.50 Granted 15,000 3.00 9.94 Exercised - Expired or forfeited 7,500 3.00 9.20 Options outstanding at June 30, 2023 1,097,500 $1.48 8.3 Options exercisable at June 30, 2023 962,500 $1.12 7.3 Options expected to vest at June 30, 2023 135,000 $3.00 9.0

PREFERRED EQUITY

PREFERRED EQUITY	6 Months Ended
	Jun. 30, 2023
Equity [Abstract]
PREFERRED EQUITY	NOTE 12 – PREFERRED EQUITY On September 27, 2019, the Company issued 200,000 0.001 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 1,000 18,302,500 697,500 The Series B preferred stock is non-convertible and pays cumulative dividends, if and when declared by the Company’s Board of Directors, at a rate of 6.50% 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 Company’s current corporate rating is BBB+. 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 per share, plus accrued and unpaid dividends, if any. Subject to applicable law, the Company is required to redeem the Series B preferred stock, in each case at a redemption price equal to $1,000 per share, plus accrued and unpaid dividends, as follows: · 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 are 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.

FAIR VALUE

FAIR VALUE	6 Months Ended
	Jun. 30, 2023
Fair Value Disclosures [Abstract]
FAIR VALUE	NOTE 13 – FAIR VALUE FASB ASC 820, Fair Value Measurements and Disclosures ASC 820 establishes a hierarchy of valuation techniques based on the observability of inputs utilized in measuring financial assets and liabilities at fair value. GAAP establishes market-based or observable inputs as the preferred source of values, followed by valuation models using management assumptions in the absence of market inputs. The three levels of the hierarchy are described below: Level I Level II Level III ASC 820 requires the use of observable market data, when available, in making fair value measurements. When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurements. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. Valuation Process Mortgages Owned and Mortgage Secured Notes Payable: Mortgage loans for which the Company has the intention and ability to hold for the foreseeable future, or until maturity or payoff, are reported at their outstanding principal balances, net of any unearned income, premiums or discounts. If a decline in fair value below the carrying balance is other-than-temporary, an unrealized impairment loss is recorded, and the loan is recorded at the lower fair value at each reporting period. To date, the Company has not recorded any impairment losses related to the mortgage loans. Due to the fact that the Company issues notes secured directly by underlying loans, our assets and liabilities in this category have identical values and assets have offsetting balances. Mortgage Servicing: The net present value of the servicing income is recognized at the time the mortgage is initiated as an unrealized gain. This value uses several inputs that are highly subjective including: discount rate, constant prepayment rate, the current interest rate environment, and default rate assumptions. Since the Company has limited operating history and a small amount of loans outstanding, it has a limited basis to predict prepayment rates and default rates, but have engaged a third party, MIAC Analytics, to assist us in our valuation of this asset. The amount is included on the unaudited consolidated statements of financial condition as “Mortgage Servicing Rights, at Fair Value.” Securities J. W. Korth holds $ 225,000 KDM also holds a small amount of its own MSNs in an account in which it will hold MSNs it may buy from time to time to provide liquidity to clients of J.W. Korth. 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 June 30, 2023 Total Level I Level II Level III Financial Assets Mortgages Owned $ 485,500,864 $ - $ 485,500,864 $ - Mortgage Servicing 13,320,179 - - 13,320,179 Portfolio Loans 5,613,038 - 5,613,038 - Securities - - - - Non-MSN Securities 225,000 - - 225,000 Total Financial Assets $ 504,659,081 $ - $ 491,113,902 $ 13,545,179 Financial Liabilities Mortgage Secured Notes Payable $ 494,124,386 $ - $ 494,124,386 $ - Warehouse Line of Credit - - - - Total Financial Liabilities $ 494,124,386 $ - $ 494,124,386 $ - December 31, 2022 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 $ - Fair Value Measurements Changes in Fair Value Measurements for the six months ended June 30, 2023 The following table presents a reconciliation of changes in Level 3 assets and liabilities reported in the unaudited consolidated statements of financial condition for June 30, 2023: Schedule of statements of financial condition Changes in assets: Period ended June 30, 2023 Mortgage Servicing Value Non-MSN Securities Total Value Beginning balance at January 1, 2023 $ 13,229,889 $ 225,000 $ 13,454,889 Sales - - - Unrealized Gain from newly issued mortgages 1,891,878 - 1,891,878 Fair Value adjustment (1,801,588 ) - (1,801,588 ) Ending balance at June 30, 2023 $ 13,320,179 $ 225,000 $ 13,545,179 The Company’s policy for recording transfers between levels of the fair value hierarchy is to recognize such transfers as of the financial statement date. For the six months ended June 30, 2023, 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 June 30, 2023: Schedule of quantitative information Investment type Fair Value Valuation technique Unobservable inputs Values Mortgage servicing $ 13,320,179 Net Present Value Prepayment Discount 9.02 % Discount rate 15.00 % Non-MSN Securities $ 225,000 Par Value

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jun. 30, 2023
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 14 – INCOME TAXES The provision for income taxes was ($171,913) 23% 740,873 21% The provision for income taxes was $ 1,067,117 26% 4,177,029 21%

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	6 Months Ended
	Jun. 30, 2023
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	NOTE 15 – PROPERTY AND EQUIPMENT Property and Equipment are summarized as follows: Schedule of property and equipment June 30, 2023 Land & Building $ 17,900,000 Equipment 300,473 Furniture and fixtures 184,590 18,385,063 Accumulated depreciation (448,660 ) Net Property Equipment $ 17,936,403 December 31, 2022 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 Depreciation expense for the periods ending June 30, 2023 and June 30, 2022, was $ 332,159 34,407

WAREHOUSE LINE OF CREDIT

WAREHOUSE LINE OF CREDIT	6 Months Ended
	Jun. 30, 2023
Warehouse Line Of Credit
WAREHOUSE LINE OF CREDIT	NOTE 16 – WAREHOUSE LINE OF CREDIT On March 31, 2022, The Company entered into a Master Repurchase Agreement and Securities Contract (the “ Agreement Signature Line The Agreement provides that from time to time the Company may receive proceeds under the Line to originate first priority lien mortgages on real property. Signature will purchase the first lien commercial real estate mortgage loans (the “ Loans The Line has a back-up security interest grant secured by collateral specified in the Agreement in the event the Agreement is recharacterized as a secured loan. The Agreement contains financial covenants of the Company, including limitations on the Company’s incurrence of certain debt and requirements that the Company maintain certain financial ratios and minimum net worth. The Company was in compliance with these covenants as of and for the quarter ended June 30, 2023. 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 loan fees of approximately $ 1,589,783 As of June 30, 2023, the Company had a balance of $ 0 265,964 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.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2023
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 17 – SUBSEQUENT EVENTS The Company has evaluated all events or transactions for potential recognition or disclosure in the unaudited consolidated financial statements through August 11, 2023, which is the date that the unaudited consolidated financial statements were available to be issued. During this period, there were no material subsequent events requiring disclosure.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
PRINCIPLES OF CONSOLIDATION	PRINCIPLES OF CONSOLIDATION The accompanying unaudited consolidated financial statements include the accounts of the Company and the accounts of the Company’s wholly owned subsidiaries J.W. Korth, KDM Stafford LLC and KDM Funding I LLC. All intercompany balances and transactions have been eliminated in consolidation.
BASIS OF ACCOUNTING	BASIS OF ACCOUNTING The accompanying unaudited consolidated financial statements have been prepared on the accrual basis of accounting in accordance with. Generally Accepted Accounting Principles (“GAAP”). The accompanying unaudited consolidated financial statements have also been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”).
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 unaudited consolidated statements of financial condition, operations, changes in stockholders’ equity, and cash flows. Our interim period operating results do not necessarily indicate the results that may be expected for any other interim period or for the full fiscal year. These unaudited consolidated financial statements and accompanying notes should be read in conjunction with the consolidated financial statements and notes thereto in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022, as filed with the SEC on March 31, 2023.
USE OF ESTIMATES	USE OF ESTIMATES The preparation of unaudited consolidated 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 consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.
CASH AND CASH EQUIVALENTS	CASH AND CASH EQUIVALENTS For purposes of the statements 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 unaudited consolidated statements of cash flows as of June 30, 2023, and 2022: Schedule of cash and cash equivalents 2023 2022 Cash and Cash Equivalents $ 8,273,944 $ 4,436,479 Restricted Cash 19,770,822 24,862,805 $ 28,044,766 $ 29,299,284 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 unaudited consolidated financial statements, according to the amortization schedule for the loan. Mortgages owned as of the date of these unaudited consolidated financial statements are current. The net present value of the servicing revenue is recorded as mortgage servicing rights at fair value on the Unaudited Consolidated Statements of Financial Condition and the change in the fair value is recognized on the Unaudited Consolidated Statements of Operations as an unrealized gain on mortgages.
MORTGAGE SECURED NOTES	MORTGAGE SECURED NOTES The Company primarily funds the mortgage loans (”CM Loans”) that it makes by issuing MSNs in series, each of which MSN series is secured by the mortgage or mortgages funded from proceeds of the MSN series. Our MSNs have been funded in multiple ways, including private placements, SEC registered offerings, loan participations, and Rule 144A offerings. As of June 30, 2023, the Company has issued MSNs secured by these loans in the amount of $ 585,780,000 91,655,614
PORTFOLIO LOANS	PORTFOLIO LOANS The Company recognizes loans made with its own capital, or those not securitized or sold via participation, under the caption “Portfolio Loans” on the unaudited consolidated statements of financial condition. This number also includes the cash we have invested in loans on our warehouse line as “haircut capital.” As of June 30, 2023, the Company had issued Portfolio Loans in the amount of $ 39,409,104 5,613,038
PARTICIPATIONS	PARTICIPATIONS From time to time the Company sells all or part of its mortgage loans as loan participations to banks or other lending institutions that prefer to hold their mortgage investments in that manner. As of June 30, 2023, the Company had issued loan participations in the amount of $ 21,500,000
GOODWILL	GOODWILL Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“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 ended June 30, 2023.
REVENUE RECOGNITION	REVENUE RECOGNITION The Company’s primary sources of revenue are 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 $ 596,782 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 unaudited consolidated 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 interest received from our CM Loans 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 unused fees are refunded. If the transaction is unable to proceed for any reason, which is not the fault of the Company, 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 the settlement date of the trades. Trading Profits Trading profits represent revenue generated through the trading of securities either for its own account or on behalf of J.W. Korth’s 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 Interest Income is primarily derived from interest earned on Portfolio Loans and includes interest earned on cash and securities.
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 unaudited consolidated statements of financial condition 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. The assumptions used in calculating the fair value of stock-based awards represent our best estimates, but these estimates involve inherent uncertainties and the application of management judgment. As a result, if factors change and we use different assumptions, our stock-based compensation expense could be materially different in the future.
Unrealized Gain on Mortgages OWNED	Unrealized Gain on Mortgages OWNED The net present value of the servicing income is recognized at the time the mortgage is initiated. This value uses several inputs that are highly subjective including: discount rate, prepayment rate, the current interest rate environment, and default rate assumptions. Since the Company has a short operating history and a small number of loans outstanding, we have a limited basis to predict prepayment rates and default rates.
DEPRECIATION	DEPRECIATION Depreciation is provided on a straight-line basis using estimated useful lives of three thirty-nine
INCOME TAXES	INCOME TAXES Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the unaudited consolidated 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 unaudited consolidated financial statements from such position are measured by 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.
DEBT ISSUANCE COSTS	DEBT ISSUANCE COSTS Debt issuance costs are amortized over the term of the respective obligation, using the straight-line method. Amortization expense of debt issuance costs is recorded in interest expense in the unaudited consolidated statement of operations.
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. The Company adopted CECL in 2023 and did not have a material impact on the Company’s unaudited consolidated financial statements.

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	6 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
Schedule of cash and cash equivalents	Schedule of cash and cash equivalents 2023 2022 Cash and Cash Equivalents $ 8,273,944 $ 4,436,479 Restricted Cash 19,770,822 24,862,805 $ 28,044,766 $ 29,299,284

CONTINGENT LIABILITY (Tables)

CONTINGENT LIABILITY (Tables)	6 Months Ended
	Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Schedule of unpaid contingent liability outstanding	Schedule of unpaid contingent liability outstanding Contingent liability to redeem J.W. Korth Preferred Capital Interest Partners $ 320,500 Accrued quarterly dividends recorded as interest expense through June 30, 2023 6,798 Contingent Liability, net $ 327,298

MORTGAGE SECURED NOTES PAYABLE

MORTGAGE SECURED NOTES PAYABLE (Tables)	6 Months Ended
	Jun. 30, 2023
Debt Disclosure [Abstract]
Schedule of future maturities	Schedule of future maturities Years ending Future Last 6 months of 2023 $ 3,752,597 2024 102,896,351 2025 93,436,469 2026 116,831,015 2027 87,201,066 Thereafter 90,006,888 Total $ 494,124,386

COMMITMENTS (Tables)

COMMITMENTS (Tables)	6 Months Ended
	Jun. 30, 2023
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 Payments 2023 $ 128,858 2024 264,087 2025 271,470 2026 30,504 Total Lease Payments 694,919 Less: Imputed Interest (38,723) Present Value of Lease Liabilities $ 656,196

DEFERRED REVENUE, NET (Tables)

DEFERRED REVENUE, NET (Tables)	6 Months Ended
	Jun. 30, 2023
Revenue Recognition and Deferred Revenue [Abstract]
Schedule of loan originating fees and costs deferred and amortized	Schedule of loan originating fees and costs deferred and amortized Deferred Origination Fees Deferred Origination Costs Deferred Revenue, Net Deferred Revenue at December 31, 2022 $ 5,428,823 $ (3,834,954 ) $1,593,869 New loan deferrals 895,000 (405,595 ) 489,405 Amortization of deferrals (729,507 ) 487,097 (242,410) Deferred Revenue at June 30, 2023 $ 5,594,316 $ (3,753,452 ) $1,840,864

EMPLOYEE AND DIRECTOR STOCK O_2

EMPLOYEE AND DIRECTOR STOCK OPTIONS (Tables)	6 Months Ended
	Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]
Schedule of estimated fair value of stock options weighted-average assumptions	Schedule of estimated fair value of stock options weighted-average assumptions YE 2022 June 2023 Risk-free interest rate: 3.62% 3.82% Expected term: 5.78 5.75 Expected dividend yield: 0% 0% Expected volatility: 51.68% 52.17%
Schedule of stock option activity	Schedule of stock option activity 2019 Stock Option Plan: Shares Weighted Weighted Options outstanding at January 1, 2023 1,090,000 $1.47 7.50 Granted 15,000 3.00 9.94 Exercised - Expired or forfeited 7,500 3.00 9.20 Options outstanding at June 30, 2023 1,097,500 $1.48 8.3 Options exercisable at June 30, 2023 962,500 $1.12 7.3 Options expected to vest at June 30, 2023 135,000 $3.00 9.0

FAIR VALUE (Tables)

FAIR VALUE (Tables)	6 Months Ended
	Jun. 30, 2023
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 June 30, 2023 Total Level I Level II Level III Financial Assets Mortgages Owned $ 485,500,864 $ - $ 485,500,864 $ - Mortgage Servicing 13,320,179 - - 13,320,179 Portfolio Loans 5,613,038 - 5,613,038 - Securities - - - - Non-MSN Securities 225,000 - - 225,000 Total Financial Assets $ 504,659,081 $ - $ 491,113,902 $ 13,545,179 Financial Liabilities Mortgage Secured Notes Payable $ 494,124,386 $ - $ 494,124,386 $ - Warehouse Line of Credit - - - - Total Financial Liabilities $ 494,124,386 $ - $ 494,124,386 $ - December 31, 2022 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 $ -
Schedule of statements of financial condition	Schedule of statements of financial condition Changes in assets: Period ended June 30, 2023 Mortgage Servicing Value Non-MSN Securities Total Value Beginning balance at January 1, 2023 $ 13,229,889 $ 225,000 $ 13,454,889 Sales - - - Unrealized Gain from newly issued mortgages 1,891,878 - 1,891,878 Fair Value adjustment (1,801,588 ) - (1,801,588 ) Ending balance at June 30, 2023 $ 13,320,179 $ 225,000 $ 13,545,179
Schedule of quantitative information	Schedule of quantitative information Investment type Fair Value Valuation technique Unobservable inputs Values Mortgage servicing $ 13,320,179 Net Present Value Prepayment Discount 9.02 % Discount rate 15.00 % Non-MSN Securities $ 225,000 Par Value

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	6 Months Ended
	Jun. 30, 2023
Property, Plant and Equipment [Abstract]
Schedule of property and equipment	Schedule of property and equipment June 30, 2023 Land & Building $ 17,900,000 Equipment 300,473 Furniture and fixtures 184,590 18,385,063 Accumulated depreciation (448,660 ) Net Property Equipment $ 17,936,403 December 31, 2022 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

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022	Jun. 30, 2022
Accounting Policies [Abstract]
Cash and cash equivalents	$ 8,273,944	$ 7,776,789	$ 4,436,479
Restricted cash	19,770,822	$ 10,583,641	24,862,805
Cash, cash equivalents and restricted cash	$ 28,044,766		$ 29,299,284

SUMMARY OF SIGNIFICANT ACCOUN_5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative)	6 Months Ended
	Jun. 30, 2023 USD ($)
Property, Plant and Equipment [Line Items]
FDIC Insured Amount	$ 250,000
Mortgage secured notes funded	585,780,000
Mortgage second secured notes funded	91,655,614
Portfolio loans issued	39,409,104
Portfolio loan currently holds	5,613,038
Loan participations	21,500,000
Rental income	$ 596,782
Minimum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	three
Maximum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	thirty-nine

CONTINGENT LIABILITY (Details)

CONTINGENT LIABILITY (Details)	6 Months Ended
	Jun. 30, 2023 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Contingent liability to redeem J.W. Korth Preferred Capital Interest Partners	$ 320,500
Accrued quarterly dividends recorded as interest expense through June 30, 2023	6,798
Contingent Liability, net	$ 327,298

CONTINGENT LIABILITY (Details N

CONTINGENT LIABILITY (Details Narrative) - J.W. Korth [Member]	6 Months Ended
	Jun. 30, 2023
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)	Jun. 30, 2023 USD ($)
Debt Disclosure [Abstract]
Last 6 months of 2023	$ 3,752,597
2024	102,896,351
2025	93,436,469
2026	116,831,015
2027	87,201,066
Thereafter	90,006,888
Total	$ 494,124,386

MORTGAGE SECURED NOTES PAYABL_3

MORTGAGE SECURED NOTES PAYABLE (Details Narrative) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Funded loans	$ 485,500,864	$ 447,407,141
Secured loans	$ 494,124,386	$ 454,883,011
Minimum [Member]
Debt Instrument [Line Items]
Interest Percentage	4.25%
Maximum [Member]
Debt Instrument [Line Items]
Interest Percentage	8.82%

RESTRICTED CASH (Details Narrat

RESTRICTED CASH (Details Narrative) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Cash	$ 3,852,329	$ 8,000,000
Restricted Investment	2,500,000	3,986,207
Restricted cash collected from borrowers in certificate of deposit	3,250,000
Restricted cash collected from borrowers in savings account	250,000
Restricted cash	7,768,512	3,500,000
Warehouse Line Agreement [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Account restricted per the warehouse line agreement	1,000,000	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	286,262	626,414
In Trust For 2 [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Account balance	816,407	752,156
Multiple Lockbox [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Account balance	$ 72,990	$ 100,359

ACQUISITION OF RENTAL PROPERTY

ACQUISITION OF RENTAL PROPERTY (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Restructuring Cost and Reserve [Line Items]
Net income attributable to non-controlling interest	$ (17,875)
KDM Stafford LLC [Member]
Restructuring Cost and Reserve [Line Items]
Net income attributable to non-controlling interest	$ 17,875

COMMITMENTS (Details)

COMMITMENTS (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
2023	$ 128,858
2024	264,087
2025	271,470
2026	30,504
Total Lease Payments	694,919
Less: Imputed Interest	(38,723)
Present Value of Lease Liabilities	$ 656,196	$ 768,984

COMMITMENTS (Details Narrative)

COMMITMENTS (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Rent expense	$ 131,128	$ 125,521
Weighted-average discount rate	4.24%
Weighted-average remaining life	2 years 7 months 6 days
Present value of lease liabilities	$ 656,196		$ 768,984

DEFERRED REVENUE, NET (Details)

DEFERRED REVENUE, NET (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Deferred origination fees	$ 5,594,316	$ 5,428,823
Deferred origination costs	(3,753,452)	(3,834,954)
Deferred revenue, net	1,840,864	$ 1,593,869
New Loan Deferrals [Member]
Deferred origination fees	895,000
Deferred origination costs	(405,595)
Deferred revenue, net	489,405
Amortization Of Deferrals [Member]
Deferred origination fees	(729,507)
Deferred origination costs	487,097
Deferred revenue, net	$ (242,410)

EMPLOYEE AND DIRECTOR STOCK O_3

EMPLOYEE AND DIRECTOR STOCK OPTIONS (Details)	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]
Risk-free interest rate:	3.82%	3.62%
Expected term:	5 years 9 months	5 years 9 months 10 days
Expected dividend yield:	0%	0%
Expected volatility:	52.17%	51.68%

EMPLOYEE AND DIRECTOR STOCK O_4

EMPLOYEE AND DIRECTOR STOCK OPTIONS (Details 1)	6 Months Ended
	Jun. 30, 2023 $ / shares shares
Share-Based Payment Arrangement [Abstract]
Options outstanding number, beginning balance	1,090,000
Options outstanding weighted average exercise price, beginning balance | $ / shares	$ 1.47
Weighted remaining contractual life (years)	7 years 6 months
Options granted number	15,000
Weighted average exercise price granted | $ / shares	$ 3
Weighted remaining contractual life (years) granted	9 years 11 months 8 days
Options exercised number
Options expired or forfeited number	7,500
Weighted average exercise price expired or forfeited | $ / shares	$ 3
Weighted remaining contractual life (years) expired or forfeited	9 years 2 months 12 days
Options outstanding number, ending balance	1,097,500
Options outstanding weighted average exercise price, ending balance | $ / shares	$ 1.48
Option exercisable weighted remaining contractual life (years)	8 years 3 months 18 days
Options exercisable number	962,500
Options exercisable weighted average exercise price | $ / shares	$ 1.12
Option exercisable weighted remaining contractual life (years)	7 years 3 months 18 days
Options vested and expected to vest outstanding number	135,000
Options vested and expected to vest outstanding weighted average exercise price | $ / shares	$ 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 ($)		6 Months Ended		12 Months Ended
	Jun. 28, 2019	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
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		$ 1.22999		$ 1.2160
Stock based compensation		$ 29,474	$ 12,906
Common stock available to be issued		1,902,500
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
Common stock, par value (in dollars per share)	$ 0.001

PREFERRED EQUITY (Details Narra

PREFERRED EQUITY (Details Narrative) - USD ($)				6 Months Ended
	Aug. 12, 2022	Jun. 29, 2021	Sep. 27, 2019	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Class of Stock [Line Items]
Series A preferred stock (in shares)				255,000
Intrest expense				$ 793,307	$ 106,914
Series A Cumulative Perpetual Convertible Preferred Stock [Member]
Class of Stock [Line Items]
Issue of shares			200,000
Preferred stock, par value			$ 0.001
Proceeds from issuance of shares			$ 4,750,000
Prepaid Expenses			250,000
Amount of conversion			$ 25
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 Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, par value	$ 25.25			$ 0.001		$ 0.001
Series A preferred stock (in shares)	480,000
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
Preferred Stock, Redemption Price Per Share				1,000
Stock issuance cost		$ 697,500
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 ($)	Jun. 30, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities	$ 225,000	$ 567,826
Warehouse Line of Credit		326,736
Fair Value, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgages Owned	485,500,864	447,407,141
Mortgage Servicing	13,320,179	13,229,889
Portfolio Loans	5,613,038	3,318,832
Securities		342,826
Non- MSN Securities	225,000	225,000
Total Financial Assets	504,659,081	464,523,688
Mortgage Secured Notes Payable	494,124,386	454,883,011
Warehouse Line of Credit		1,560,000
Total Financial Liabilities	494,124,386	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	485,500,864	447,407,141
Mortgage Servicing
Portfolio Loans	5,613,038	3,318,832
Securities		342,826
Non- MSN Securities
Total Financial Assets	491,113,902	451,068,799
Mortgage Secured Notes Payable	494,124,386	454,883,011
Warehouse Line of Credit		1,560,000
Total Financial Liabilities	494,124,386	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	13,320,179	13,229,889
Portfolio Loans
Securities
Non- MSN Securities	225,000	225,000
Total Financial Assets	13,545,179	13,454,889
Mortgage Secured Notes Payable
Warehouse Line of Credit
Total Financial Liabilities

FAIR VALUE (Details 1)

FAIR VALUE (Details 1)	6 Months Ended
	Jun. 30, 2023 USD ($)
Schedule of Investments [Line Items]
Beginning balance at beginning	$ 13,454,889
Sales
Unrealized gain from newly issued mortgages	1,891,878
Fair value adjustment	(1,801,588)
Ending balance at ending	13,545,179
Mortgage Servicing [Member]
Schedule of Investments [Line Items]
Beginning balance at beginning	13,229,889
Sales
Unrealized gain from newly issued mortgages	1,891,878
Fair value adjustment	(1,801,588)
Ending balance at ending	13,320,179
Non Msn Securities [Member]
Schedule of Investments [Line Items]
Beginning balance at beginning	225,000
Sales
Unrealized gain from newly issued mortgages
Fair value adjustment
Ending balance at ending	$ 225,000

FAIR VALUE (Details 2)

FAIR VALUE (Details 2) - Fair Value, Recurring [Member]	6 Months Ended
	Jun. 30, 2023 USD ($)
Mortgage Servicing [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	$ 13,320,179
Valuation technique	Net Present Value
Unobservable inputs	Prepayment Discount
Servicing Asset, Measurement Input	0.0902
Non Msn Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	$ 225,000
Valuation technique	Par Value
Unobservable inputs	Discount rate
Servicing Asset, Measurement Input	0.1500

FAIR VALUE (Details Narrative)

FAIR VALUE (Details Narrative)	Jun. 30, 2023 USD ($)
Securities [Member] | JW Korth [Member]
Debt Instrument [Line Items]
Default bonds amount	$ 225,000

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Income Tax Disclosure [Abstract]
Provision for income taxes	$ (171,913)	$ 1,067,117
Effective tax rate	23%	26%
Income (loss) before income taxes	$ 740,873	$ (4,177,029)
Federal statutory rate	21%	21%
Income (loss) before income taxes	$ (740,873)	$ 4,177,029

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Total	$ 18,385,063	$ 18,360,118
Accumulated depreciation	(448,660)	(187,814)
Net property equipment	17,936,403	18,172,304
Land and Building [Member]
Property, Plant and Equipment [Line Items]
Total	17,900,000	17,900,000
Equipment [Member]
Property, Plant and Equipment [Line Items]
Total	300,473	276,358
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Total	$ 184,590	$ 183,760

PROPERTY AND EQUIPMENT (Detai_2

PROPERTY AND EQUIPMENT (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Property, Plant and Equipment [Abstract]
Depreciation Expense	$ 332,159	$ 34,407

WAREHOUSE LINE OF CREDIT (Detai

WAREHOUSE LINE OF CREDIT (Details Narrative)	6 Months Ended
	Jun. 30, 2023 USD ($)
Warehouse Line Of Credit
Loans fees	$ 1,589,783
Warehouse costs	0
Interest expense	$ 265,964