Overview
- IndustryMortgage Bankers & Loan Correspondents1
- HeadquartersCoral Gables, Florida1
- Incorporated inFL3
- Business address135 San Lorenzo Ave, Suite 600, Coral Gables, Fl 331463
- Filer categoryNon-accelerated filer, Smaller reporting company, Emerging growth company3
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“Company,” and “us” to refer to Korth Direct Mortgage Inc, and its subsidiaries.4 From its latest annual report
Financials
From the company’s reports to the SEC. Every number links to the filing it came from.
Key numbers, fiscal 2025
76.7%Gross margin2
15.6%Operating margin2
-2.4%Net margin2
42.8%Revenue growth, 20252
-1.4%Return on equity2
10.76×Debt to equity2
-$15.6MFree cash flow2
Where the money goes
Where each dollar of revenue went, fiscal 2025
- Cost of revenue23¢$4.0M
- Other costs63¢$10.8M
- Interest13¢$2.3M
- Income tax1¢$126.4K
Out of $17.2M in revenue.2 The company lost money this year.
Financial statements
No quarterly figures reported.
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $307.8K5 | $590.1K6 | $2.8M7 | $7.4M8 | $9.9M9 | $9.8M10 | $12.1M2 | $17.2M2 |
| Cost of revenue | $103.2K5 | $293.2K6 | $808.4K7 | $2.0M8 | $3.1M9 | $3.3M10 | $3.6M2 | $4.0M2 |
| Gross profit | $204.6K5 | $297.0K6 | $2.0M7 | $5.4M8 | $6.8M9 | $6.6M10 | $8.5M2 | $13.2M2 |
| Operating expenses | $5.3M8 | $6.0M9 | $6.9M10 | $9.5M2 | $10.5M2 | |||
| Operating income | -$172.1K5 | -$612.6K6 | -$276.1K7 | $88.8K8 | $741.7K9 | -$356.9K10 | -$1.0M2 | $2.7M2 |
| Interest | $17.4K7 | $119.6K8 | $1.3M9 | $1.3M10 | $1.8M2 | $2.3M2 | ||
| Income before tax | $5.9M8 | $4.9M9 | -$5.7M10 | -$2.1M2 | $494.7K2 | |||
| Income tax | $380.2K6 | $260.9K7 | $1.5M8 | $1.3M9 | -$1.3M10 | -$633.7K2 | $126.4K2 | |
| Net income | $43.4K5 | $1.9M6 | $726.5K7 | $4.4M8 | $3.3M9 | -$4.3M10 | -$1.7M2 | -$419.1K2 |
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Cash | $15.3K6 | $3.7M7 | $8.6M7 | $19.5M8 | $18.4M9 | $21.7M10 | $18.3M2 | $10.3M2 |
| Property, plant and equipment | $304.2K8 | $18.2M9 | $17.7M10 | $31.9M2 | $69.7M2 | |||
| Goodwill | $110.0K8 | $110.0K9 | $110.0K10 | $110.0K2 | $110.0K2 | |||
| Total assets | $13.6M5 | $94.2M6 | $191.9M7 | $372.0M8 | $507.5M9 | $549.3M10 | $521.9M2 | $380.9M2 |
| Long-term debt | $175.4M7 | $326.2M7 | $454.9M8 | $485.2M9 | $450.3M10 | $319.7M2 | ||
| Total liabilities | $13.9M5 | $87.8M6 | $185.5M7 | $341.4M8 | $475.2M9 | $519.3M10 | $491.1M2 | $351.1M2 |
| Retained earnings | $4.9M8 | $6.5M9 | $293.2K10 | -$3.3M2 | -$5.7M2 | |||
| Shareholders’ equity | -$274.3K6 | $6.4M7 | $6.4M7 | $30.6M7 | $32.4M10 | $30.1M2 | $30.8M2 | $29.7M2 |
| Shares outstanding | 5.0M shares5 | 5.0M shares6 | 5.0M shares6 | 5.0M shares7 | 5.0M shares8 | 5.0M shares9 | 5.0M shares10 | 5.0M shares2 |
Cash flow is reported year to date, not quarter by quarter, so there are no separate quarterly figures.
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Cash from operations | -$4.5K5 | -$2.3M6 | $5.2M7 | -$8.8M8 | $902.0K9 | $1.3M10 | -$5.4M2 | -$14.3M2 |
| Depreciation and amortization | $441.7K10 | $1.2M2 | $1.8M2 | |||||
| Stock-based compensation | $25.8K8 | $171.3K9 | $56.3K10 | $53.6K2 | $53.6K2 | |||
| Capital spending | $179.6K7 | $162.1K8 | $73.9K9 | $24.9K10 | $76.9K2 | $1.3M2 | ||
| Free cash flow | $5.0M | -$8.9M | $828.1K | $1.3M | -$5.5M | -$15.6M | ||
| Cash from investing | -$377.6K8 | -$73.9K9 | -$24.9K10 | -$76.9K2 | $7.7M2 | |||
| Cash from financing | $20.0M8 | -$1.9M9 | $2.0M10 | $2.2M2 | -$1.5M2 |
What it owns
What Korth Direct Mortgage Inc. reports owning in its annual reports to the SEC: buildings, land and equipment, real estate and locations, investments, intangible assets and inventory, at the end of its latest fiscal year and a year before.
Property and equipment
| Item | Latest | A year before | Change |
|---|---|---|---|
| Property and equipment, before depreciation | $72.4M2 Dec 31, 2025 | $33.5M2 Dec 31, 2024 | +116.3% |
| Accumulated depreciation | $2.7M2 Dec 31, 2025 | $1.5M2 Dec 31, 2024 | +75.3% |
| Property and equipment, net | $69.7M2 Dec 31, 2025 | $31.9M2 Dec 31, 2024 | +118.3% |
| Operating-lease assets (leased space) | $560.6K2 Dec 31, 2025 | $270.3K2 Dec 31, 2024 | +107.4% |
Investments
| Item | Latest | A year before | Change |
|---|---|---|---|
| Cash and cash equivalents | $10.3M2 Dec 31, 2025 | $18.3M2 Dec 31, 2024 | −44.0% |
Intangibles and goodwill
Properties, in its own words
In November 2022, we acquired a majority interest in a property in Stafford, Virginia. The property is tenanted by third parties. KDM took possession of properties in Acton, Massachusetts and St. Louis, Missouri, both office properties, via foreclosure and deed in lieu, respectively, in 2024. In 2025, we took possession of property in Los Angeles, CA and Selma, TX via deed in lieu of foreclosure. We manage these properties under our Asset Management segment. Please see Segment Reporting (Note 19).
We lease office space in Coral Gables, Florida, and through our J. W. Korth subsidiary in Lansing, Michigan.
Item 2 of the 10-K filed Jun 1, 2026.4
Former names
- Korth Direct Mortgage LLCJan 27, 2017 to May 14, 20193
Timeline
- Jan 21, 20268-K Change of auditor14
- Oct 20, 20238-K Entered a material agreement15
- Jun 15, 20238-K Entered a material agreement16
- Jun 14, 20238-K Change in control17
- May 18, 20238-K Executive or director change18
- Aug 5, 20228-K Entered a material agreement19
- Jul 5, 20228-K Unregistered sale of shares20
- Apr 6, 20228-K Entered a material agreement21
- Dec 27, 20218-K Change of auditor22
Filings
35 filings to the SEC since October 2021: 5 annual reports, 15 quarterly reports, 9 major events, 6 other. The latest 20:
- Oct 2, 202610-Q EDGAR
- Aug 14, 2026NT 10-Q EDGAR
- Jul 1, 202610-Q EDGAR
- Jun 1, 202610-K EDGAR
- May 15, 2026NT 10-Q EDGAR
- Apr 6, 2026NT 10-K/A AMENDMENT NO. 1 EDGAR
- Mar 31, 2026NT 10-K EDGAR
- Jan 21, 20268-K EDGAR
- Nov 13, 202510-Q EDGAR
- Aug 14, 202510-Q EDGAR
- May 15, 202510-Q EDGAR
- Apr 1, 202510-K EDGAR
- Apr 1, 2025NT 10-K EDGAR
- Nov 14, 202410-Q EDGAR
- Aug 14, 202410-Q EDGAR
- May 20, 202410-Q EDGAR
- May 13, 2024NT 10-Q EDGAR
- Mar 27, 202410-K EDGAR
- Nov 14, 202310-Q EDGAR
- Oct 20, 20238-K EDGAR
The 35 filings since October 2021 can be filtered by form type and year here when JavaScript is on.
Every filing from the last five years, summarized. The full record is on SEC EDGAR.
SEC filer profile
How Korth Direct Mortgage Inc. is registered with the Securities and Exchange Commission, from its EDGAR record and the cover page of its latest annual report.
- Name on EDGARKorth Direct Mortgage Inc.1
- CIK0001695963
- Employer ID (EIN)27-06441724
- Filer statusNon-accelerated filer an emerging growth company; a smaller reporting company; not a shell company4
- Incorporated inFlorida4
- Fiscal year endsDecember 311
- Industry code (SIC)6162 Mortgage Bankers & Loan Correspondents1
- SEC reviewing officeOffice of Finance, Division of Corporation Finance1
- Business address135 San Lorenzo Ave, Suite 600, Coral Gables, FL 331461
- Phone30566884851
- Shares outstanding5,000,000 as of Oct 2, 202613
- Public float$0 as of Jun 30, 20252
- AuditorCarr, Riggs & Ingram, L.L.C., Palm Beach Gardens, FL PCAOB ID 213; no auditor attestation of internal control over financial reporting4
- On EDGAR sinceJan 27, 20171
- Filings119 in all: 10-Q (26), S-1/A (24), 8-K (20), 10-K (9), UPLOAD (8), NT 10-Q (7), D (5), S-1 (5)1
All 15 form types
CORRESP (4), RW (3), 10-Q/A (2), EFFECT (2), NT 10-K (2), DEL AM (1), NT 10-K/A (1)
- Latest filingsAnnual report (10-K) Jun 1, 2026
Quarterly report (10-Q) Oct 2, 2026
Latest 8-K (8-K) Jan 21, 2026
Risk factors and legal proceedings
The risks Korth Direct Mortgage Inc. names in Item 1A of its 10-K filed Jun 1, 2026: 28 risks under these headings, as written.4
- Difficult conditions in the mortgage, residential and commercial real estate markets, or in the financial markets and the economy generally, including market volatility, and geopolitical tensions, may cause us to experience market losses related to our holdings. There is no assurance that these conditions now existing, will improve in the near future.
- The market for real estate assets constituting commercial office space have experienced a significant downturn.
- KDM’s lending of additional subordinated funds to a Borrower may provide the Borrower needed funds to stabilize or complete needed renovations to subject properties but may also cause the property to be leveraged higher than would be acceptable under the current CM Loans underwriting guidelines.
- Inflation in the U.S. is expected to continue at an elevated level in the near- to medium-term, which may have an adverse impact on the valuation of our loans and affect our borrowers’ ability to refinance.
- CM Investors may lose some or all of their CM Investment.
- We rely on third-party appraisals to value the property securing the CM Loan, and information from the borrower on cash flow and profitability of the income property.
- As we are highly dependent on information technology. System failures or security breaches could materially disrupt our business.
- There may be a default on a CM Loan.
- Any costs or delays involved in the completion of a foreclosure or liquidation of the underlying property may further reduce proceeds from the property and may increase the loss.
- Real estate properties acquired through foreclosure subject us to additional risks associated with owning real estate.
- Information supplied by the borrower could be inaccurate or intentionally false.
- In many cases, we do not monitor our borrowers’ use of funds.
The other 16 risks
- CM Loan Guarantees May Not Be Collectable
- If payments on a CM Loan are not paid when due, CM Investors may not receive the full principal and interest payments that they expect to receive on Notes.
- The CM Loans underlying the Notes are typically payable on an interest-only basis until maturity, at which time the entire principal balance is due. Therefore, borrowers may have to refinance to pay off a balloon payment on the CM Loan.
- The current interest rate environment and/or market volatility may make it difficult for a CM Loan to refinance.
- Prevailing interest rates may change during the term of the CM Loan on which a Note is dependent.
- Investor funds in a KDM segregated account do not earn interest.
- We may have to limit our business to avoid being deemed an investment company under the Investment Company Act.
- Funds Received for all CM Loans are held on an omnibus basis in a Segregated Account.
- We rely on third-party banks to disburse CM Loan proceeds and process CM Loan payments, and we rely on third-party computer hardware and software. If we are unable to continue utilizing these services, our business and ability to service the CM Loans may be adversely affected.
- Competition for our employees is strong, and we may not be able to attract and retain the highly skilled employees that we need to support our business.
- If we fail to retain our key personnel, we may not be able to achieve our anticipated level of growth and our business could suffer.
- Purchasers of CM Investments will have no control over KDM and will not be able to influence KDM corporate matters.
- Unforeseeable Adverse Events.
- Federal and State regulatory bodies may create new rules and regulations that could adversely affect our business.
- If we discover a material weakness in our internal control over financial reporting which we are unable to remedy, or otherwise fail to maintain effective internal control over financial reporting, our ability to report our financial results on a timely and accurate basis may be adversely affected.
- New Government Regulation may limit our ability to make CM Loans
- Our Proprietary Ratings System is untested and is based on broad assumptions for which we have little statistical basis
- Risks Related to the Banking System and Financial Markets
Legal proceedings
The Company is not subject to any material legal proceedings. The Company may at times be involved in legal proceedings, claims, and litigation arising in the ordinary course of business not specifically discussed herein. In the opinion of management, the final disposition of such matters will not have a material adverse effect on our consolidated financial position, cash flows or results of operations.
The opening of Item 3, Legal Proceedings.4
Sources
The numbers on this page point here. Each one links to the record it came from.
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- 13
- 14SEC EDGARChange of auditor
- 15SEC EDGAREntered a material agreement
- 16SEC EDGAREntered a material agreement
- 17SEC EDGARChange in control
- 18SEC EDGARExecutive or director change
- 19SEC EDGAREntered a material agreement
- 20SEC EDGARUnregistered sale of shares
- 21SEC EDGAREntered a material agreement
- 22SEC EDGARChange of auditor