Manhattan Bridge Capital, Inc. (Nasdaq: LOAN) (the “Company”) announced today that its net income for the three months ended September 30, 2023 was approximately $1,446,000, or $0.13 per basic and diluted share (based on approximately 11.5 million weighted-average outstanding common shares), as compared to approximately $1,237,000, or $0.11 per basic and diluted share (based on approximately 11.5 million weighted-average outstanding common shares), for the three months ended September 30, 2022, an increase of $209,000, or 16.9%. This increase is primarily attributable to an increase in interest income from loans, partially offset by an increase in interest expense.

Total revenues for the three months ended September 30, 2023 were approximately $2,434,000 compared to approximately $2,107,000 for the three months ended September 30, 2022, an increase of $327,000, or 15.5%. The increase in revenues was due to higher interest rates charged on the Company’s commercial loans. For the three months ended September 30, 2023 and 2022, approximately $1,992,000 and $1,678,000, respectively, of the Company’s revenues were attributable to interest income on secured commercial loans that the Company offers to real estate investors, and approximately $441,000 and $429,000, respectively, of the Company’s revenues were attributable to origination fees on such loans. The loans are principally secured by collateral consisting of real estate and accompanied by personal guarantees from the principals of the borrowers.

Net income for the nine months ended September 30, 2023 was approximately $4,128,000, or $0.36 per basic and diluted share (based on approximately 11.5 million weighted-average outstanding common shares), as compared to approximately $4,018,000, or $0.35 per basic and diluted share (based on approximately 11.5 million weighted-average outstanding common shares) for the nine months ended September 30, 2022, an increase of $110,000, or 2.7%. This increase is primarily attributable to an increase in interest income from loans, partially offset by an increase in interest expense.

Total revenues for the nine months ended September 30, 2023 were approximately $7,231,000 compared to approximately $6,339,000 for the nine months ended September 30, 2022, an increase of $892,000, or 14.1%. The increase in revenues was due to higher interest rates charged on the Company’s commercial loans. For the nine months ended September 30, 2023 and 2022, revenues of approximately $5,889,000 and $4,934,000, respectively, were attributable to interest income on the secured commercial loans that the Company offers to real estate investors, and approximately $1,342,000 and $1,405,000, respectively, of the Company’s revenues were attributable to origination fees on such loans. The loans are principally secured by collateral consisting of real estate and accompanied by personal guarantees from the principals of the borrowers.

As of September 30, 2023, total stockholders' equity was approximately $42,944,000.

On April 11, 2023, the Company’s Board of Directors authorized a share buy back program, pursuant to which the Company may, from time to time, purchase up to 100,000 of its common shares. This program does not obligate the Company to purchase any shares and expires on April 10, 2024. The authorization for the program may be terminated, increased or decreased by the Company’s Board of Directors in its discretion at any time. As of September 30, 2023, the Company has purchased an aggregate of 37,860 common shares under this repurchase program, at an aggregate cost of approximately $186,000.

Assaf Ran, Chairman of the Board and Chief Executive Officer of the Company, stated, “In the current real estate market condition, we are reaping the fruits of our disciplined and conservative underwriting practices as well as our extraordinary low leverage versus our peers. Due to the high interest rates environment, real estate markets are slower and heavier. Yet, we face less competition, so we have managed to remain active.”

“I’d like to offer my sincere condolences to the families of the victims of the evil massacre of innocent Israeli citizens, including babies, children and women by the terror organization Hamas, and I pray for fast recovery of the wounded and the return of the over 200 hostages,” added Mr. Ran.

About Manhattan Bridge Capital, Inc.

Manhattan Bridge Capital, Inc. offers short-term secured, non–banking loans (sometimes referred to as ‘‘hard money’’ loans) to real estate investors to fund their acquisition, renovation, rehabilitation or improvement of properties located in the New York metropolitan area, including New Jersey and Connecticut, and in Florida. We operate the website: https://www.manhattanbridgecapital.com.

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARYCONSOLIDATED BALANCE SHEETS
 
 Assets September 30, 2023(unaudited)   December 31, 2022(audited)
Loans receivable $ 70,781,039     $ 74,483,463  
Interest receivable on loans   1,349,374       1,363,502  
Cash   133,147       103,540  
Other assets   100,030       59,566  
Operating lease right-of-use asset, net   221,079       262,222  
Deferred financing costs, net   30,765       7,708  
Total assets $ 72,615,434     $ 76,280,001  
Liabilities and Stockholders’ Equity          
Liabilities:          
Line of credit $ 21,433,094     $ 24,994,234  
Senior secured notes (net of deferred financing costs of $190,842 and $247,155, respectively)   5,809,158       5,752,845  
Deferred origination fees   670,295       669,128  
Accounts payable and accrued expenses   236,186       289,868  
Operating lease liability   233,978       273,485  
Dividends payable   1,288,753       1,436,868  
Total liabilities   29,671,464       33,416,428  
Commitments and contingencies          
Stockholders’ equity:          
Preferred shares - $.01 par value; 5,000,000 shares authorized; none issued   ---       ---  
Common shares - $.001 par value; 25,000,000 shares authorized; 11,757,058 issued; 11,457,085 and 11,494,945 outstanding, respectively   11,757       11,757  
Additional paid-in capital   45,545,609       45,535,811  
Treasury stock, at cost – 299,973 and 262,113 shares, respectively   (984,630 )     (798,939 )
Accumulated deficit   (1,628,766 )     (1,885,056 )
Total stockholders’ equity   42,943,970       42,863,573  
Total liabilities and stockholders’ equity $ 72,615,434     $ 76,280,001  
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARYCONSOLIDATED STATEMENTS OF OPERATIONS(unaudited)
  Three MonthsEnded September 30, Nine MonthsEnded September 30,  
    2023     2022     2023     2022  
Interest income from loans $ 1,992,495   $ 1,677,670   $ 5,888,843   $ 4,933,767  
Origination fees   441,271     429,350     1,342,077     1,405,076  
Total revenue   2,433,766     2,107,020     7,230,920     6,338,843  
             
Operating costs and expenses:            
Interest and amortization of deferred financing costs   614,389     496,718     1,856,079     1,204,954  
Referral fees   361     625     1,652     3,945  
General and administrative expenses   377,192     377,436     1,274,267     1,125,162  
Total operating costs and expenses   991,942     874,779     3,131,998     2,334,061  
Income from operations   1,441,824     1,232,241     4,098,922     4,004,782  
Other income   4,500     4,500     29,380     13,500  
Income before income tax expense   1,446,324     1,236,741     4,128,302     4,018,282  
Income tax expense   ---     ---     (650 )   (650 )
Net income $ 1,446,324   $ 1,236,741   $ 4,127,652   $ 4,017,632  
             
Basic and diluted net income per common share outstanding:            
--Basic $ 0.13   $ 0.11   $ 0.36   $ 0.35  
--Diluted $ 0.13   $ 0.11   $ 0.36   $ 0.35  
             
Weighted average number of common shares outstanding            
--Basic   11,461,052     11,494,945     11,477,133     11,494,945  
--Diluted   11,461,052     11,494,945     11,477,133     11,494,945  

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARYCONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY(unaudited)
 
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2023
  Common Shares Additional Paid in Capital Treasury Shares Accumulated Deficit Totals
  Shares Amount   Shares Cost    
Balance, July 1, 2023 11,757,058 $11,757 $45,542,343 295,473 $(963,745) $(1,786,337) $42,804,018
Purchase of treasury shares       4,500 (20,885)   (20,885)
Non-cash compensation     3,266       3,266
Dividends declared and payable           (1,288,753) (1,288,753)
Net income                                                                                 1,446,324 1,446,324
Balance, September 30, 2023 11,757,058 $11,757 $45,545,609 299,973 $(984,630) $(1,628,766) $42,943,970

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2022 
  Common Shares Additional Paid in Capital Treasury Shares Accumulated Deficit Totals
  Shares Amount   Shares Cost    
Balance, July 1, 2022 11,757,058 $11,757 $45,529,278 262,113 $(798,939) $(1,442,167) $43,299,929
Non-cash compensation     3,266       3,266
Dividends declared and payable           (1,436,868) (1,436,868)
Net income                                                                                 1,236,741 1,236,741
Balance, September 30, 2022 11,757,058 $11,757 $45,532,544 262,113 $(798,939) $(1,642,294) $43,103,068

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2023
  Common Shares Additional Paidin Capital Treasury Shares AccumulatedDeficit Totals
  Shares Amount   Shares Cost    
Balance, January 1, 2023 11,757,058 $11,757 $45,535,811 262,113 $(798,939) $(1,885,056) $42,863,573
Purchase of treasury shares       37,860 (185,691)   (185,691)
Non-cash compensation     9,798       9,798
Dividends paid           (2,582,609) (2,582,609)
Dividends declared and payable           (1,288,753) (1,288,753)
Net income                                                                                 4,127,652 4,127,652
Balance, September 30, 2023 11,757,058 $11,757 $45,545,609 299,973 $(984,630) $(1,628,766) $42,943,970

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2022
  Common Shares Additional Paidin Capital Treasury Shares AccumulatedDeficit Totals
  Shares Amount   Shares Cost    
Balance, January 1, 2022 11,757,058 $11,757 $45,522,746 262,113 $(798,939) $(1,349,322) $43,386,242
Non-cash compensation     9,798       9,798
Dividends paid           (2,873,736) (2,873,736)
Dividends declared and payable           (1,436,868) (1,436,868)
Net income                                                                                 4,017,632 4,017,632
Balance, September 30, 2022 11,757,058 $11,757 $45,532,544 262,113 $(798,939) $(1,642,294) $43,103,068
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARYCONSOLIDATED STATEMENTS OF CASH FLOWS(unaudited)
    Nine Months Ended September 30, 
      2023       2022  
Cash flows from operating activities:        
 Net income   $ 4,127,652     $ 4,017,632  
 Adjustments to reconcile net income to net cash provided by operating activities -        
 Amortization of deferred financing costs     71,449       83,401  
 Adjustment to operating lease right-of-use asset and liability     1,636       3,274  
 Depreciation     3,001       1,598  
 Non-cash compensation expense     9,798       9,798  
 Changes in operating assets and liabilities:        
Interest receivable on loans     14,128       (176,746 )
Other assets     (38,381 )     (29,164 )
Accounts payable and accrued expenses     (53,682 )     47,890  
Deferred origination fees     1,167       61,645  
Net cash provided by operating activities     4,136,768       4,019,328  
         
Cash flows from investing activities:        
Issuance of short term loans     (40,810,565 )     (49,241,679 )
Collections received from loans     44,512,989       42,255,461  
Purchase of fixed assets     (5,085 )     (1,893 )
Net cash provided by (used in) investing activities     3,697,339       (6,988,111 )
         
Cash flows from financing activities:        
(Repayment of) proceeds from line of credit, net     (3,561,140 )     7,715,637  
Dividends paid     (4,019,478 )     (4,310,604 )
Purchase of treasury shares     (185,691 )     ---  
Deferred financing costs incurred     (38,191 )     (35,819 )
Net cash (used in) provided by financing activities     (7,804,500 )     3,369,214  
         
Net increase in cash and restricted cash*     29,607       400,431  
Cash and restricted cash*, beginning of year     103,540       142,546  
Cash and restricted cash*, end of period   $ 133,147     $ 542,977  
         
Supplemental Cash Flow Information:        
Taxes paid during the period   $ 650     $ 650  
Interest paid during the period   $ 1,797,254     $ 1,036,338  
Operating leases paid during the period   $ 47,822     $ 47,703  
         
Supplemental Information – Noncash Information:        
Dividend declared and payable   $ 1,288,753     $ 1,436,868  
                 
* At September 30, 2022, cash and restricted cash included $433,269 of restricted cash.  
   
Contact:
Assaf Ran, CEO
Vanessa Kao, CFO
(516) 444-3400
SOURCE: Manhattan Bridge Capital, Inc.
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