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Manhattan Bridge Capital, Inc. Reports Results for 2024

1. LOAN reported a net income increase of 2.1% to $5,591,000. 2. Total revenue decreased by 1.1% to $9,689,000 due to reduced origination fees. 3. Operating costs fell by 5.5%, primarily from lower interest expenses. 4. Challenges in real estate lending persist amid high-interest rate environments. 5. Shareholders' equity rose to $43,265,000 from $42,933,000 year-over-year.

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Why Bullish?

The increase in net income despite decreased costs and improved efficiency is positive.

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The company's financial stability amidst market challenges directly influences investor sentiment.

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Current financial metrics enhance investor confidence, likely influencing short-term stock performance.

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NYSE: stocks related to real estate lending
GREAT NECK, N.Y., March 12, 2025 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (Nasdaq: LOAN) (the “Company”) announced today that net income for the year ended December 31, 2024 was approximately $5,591,000, or $0.49 per share (based on approximately 11.4 million weighted-average outstanding common shares), versus approximately $5,476,000, or $0.48 per share (based on approximately 11.5 million weighted-average outstanding common shares) for the year ended December 31, 2023, an increase of $115,000, or 2.1%. This increase is primarily attributable to a decrease in interest expense, partially offset by a decrease in origination fees. Total revenue for the year ended December 31, 2024, was approximately $9,689,000, compared to approximately $9,796,000 for the year ended December 31, 2023, a decrease of $107,000, or 1.1%. The decrease in revenue was due to a reduction in loans receivable, period over period, and reduced origination fees, which were impacted by a slowdown in new loan originations, partially offset by higher interest rates charged on the Company’s commercial loans. In 2024, approximately $8,047,000 of the Company’s revenue represents interest income on secured, real estate loans that the Company offers to real estate investors, compared to approximately $7,976,000 in 2023, and approximately $1,642,000 represents origination fees on such loans, compared to approximately $1,820,000 in 2023. The loans are principally secured by collateral consisting of real estate and accompanied by personal guarantees from the principals of the borrowers. Total operating costs and expenses for the year ended December 31, 2024 were approximately $4,115,000, compared to approximately $4,353,000 for the year ended December 31, 2023, a decrease of $238,000, or 5.5%. The decrease in operating costs and expenses was primarily attributable to a decrease in interest expense due to a reduction in amounts borrowed relating to the use of the Company’s credit line, and a reduction in the special bonus to its officers. As of December 31, 2024, total shareholders' equity was approximately $43,265,000, compared to approximately $42,933,000 as of December 31, 2023. Assaf Ran, Chairman of the Board and Chief Executive Officer of the Company, stated, “2024 was a risky and ultra challenging year for real estate lenders. The lingering high-interest rate environment weighs down on real estate investors' (our borrowers’) liquidity and profitability. Furthermore, the difference in interest rates between hard money lenders and conventional banks is not always significant enough to make refinancing a viable exit strategy for our loans.” “During 2024, our underwriting and operational policies were tested like never before ­ and we passed. I hope for continuous passing and a smooth 2025,” added Mr. Ran. About Manhattan Bridge Capital, Inc. Manhattan Bridge Capital, Inc. offers short-term secured, non–banking loans (sometimes referred to as ‘‘hard money’’ loans) to real estate investors to fund their acquisition, renovation, rehabilitation or improvement of properties located in the New York metropolitan area, including New Jersey and Connecticut, and in Florida. We operate the website: https://www.manhattanbridgecapital.com. MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARYCONSOLIDATED BALANCE SHEETSDecember 31, 2024 and 2023 2024 2023Assets   Loans receivable$  65,974,265 $  73,048,403Interest and other fees receivable on loans1,521,033 1,395,905Cash178,012 104,222Cash - restricted23,750 1,587,773Other assets62,080 63,636Right-of-use asset - operating lease, net154,039 207,364Deferred financing costs, net16,171 27,583Total assets$  67,929,350 $  76,434,886    Liabilities and Stockholders' Equity   Liabilities:   Line of credit$  16,427,874 $  25,152,338Senior secured notes (net of deferred financing costs of $96,985 and $172,069, respectively)5,903,015 5,827,931Deferred origination fees568,534 719,019Accounts payable and accrued expenses232,236 295,292Operating lease liability167,119 220,527Loan holdback50,000 ---Dividends payable1,315,445 1,287,073Total liabilities24,664,223 33,502,180    Commitments and contingencies       Stockholders' equity:   Preferred shares - $.01 par value; 5,000,000 shares authorized; none issued--- ---Common shares - $.001 par value; 25,000,000 shares authorized; 11,757,058 issued; 11,438,651 and 11,440,651 outstanding, respectively11,757 11,757Additional paid-in capital45,561,941 45,548,876Less: Treasury stock, at cost - 318,407 and 316,407 shares(1,070,406) (1,060,606)Accumulated deficit(1,238,165) (1,567,321)Total stockholders' equity43,265,127 42,932,706    Total liabilities and stockholders' equity$  67,929,350 $  76,434,886     MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARYCONSOLIDATED STATEMENTS OF OPERATIONSFOR THE YEARS ENDED December 31, 2024 and 2023   2024   2023 Revenue:   Interest income from loans$ 8,046,560  $ 7,976,232 Origination fees 1,642,081   1,820,024 Total Revenue 9,688,641   9,796,256 Operating costs and expenses:   Interest and amortization of deferred financing costs 2,337,032   2,525,935 Referral fees 1,847   2,153 General and administrative expenses 1,776,176   1,825,227 Total operating costs and expenses 4,115,055   4,353,315     Income from operations 5,573,586   5,442,941 Other income 18,000   33,880 Income before income tax expense 5,591,586   5,476,821 Income tax expense (650)  (650)Net income$ 5,590,936  $ 5,476,171     Basic and diluted net income per common share outstanding:   --Basic$0.49  $0.48 --Diluted$0.49  $0.48     Weighted average number of common shares outstanding   --Basic 11,438,656   11,469,741 --Diluted 11,438,656   11,469,741  MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY FOR THE YEARS ENDED December 31, 2024 and 2023 Common StockAdditional Paid-inCapitalTreasury StockAccumulated DeficitTotals SharesAmount SharesCost  Balance, January 1, 202311,757,058$11,757$45,535,811262,113$(798,939)$(1,885,056)$42,863,573 Purchase of treasury shares   54,294(261,667) (261,667)Non-cash compensation  13,065   13,065 Dividends paid     (3,871,363)(3,871,363)Dividends declared and payable     (1,287,073)(1,287,073)Net income for the year ended December 31, 2023__________ __________ __________ __________ __________ 5,476,171 5,476,171 Balance, December 31, 202311,757,05811,75745,548,876316,407(1,060,606)(1,567,321)42,932,706 Purchase of treasury shares   2,000(9,800) (9,800)Non-cash compensation  13,065   13,065 Dividends paid     (3,946,335)(3,946,335)Dividends declared and payable     (1,315,445)(1,315,445)Net income for the year ended December 31, 2024__________ __________ __________ __________ __________ 5,590,936 5,590,936 Balance, December 31, 202411,757,058$11,757$45,561,941318,407$(1,070,406)$(1,238,165)$43,265,127  MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED December 31, 2024 and 2023   2024   2023 Cash flows from operating activities:       Net income$5,590,936  $5,476,171 Adjustments to reconcile net income to net cash provided by operating activities -   Amortization of deferred financing costs 88,664   93,403 Depreciation 4,870   4,057 Non-cash compensation expense 13,065   13,065 Adjustment to right-of-use asset - operating lease and liability (84)  1,900 Changes in operating assets and liabilities:   Interest and other fees receivable on loans (552,755)  (245,868)Other assets 705   (3,042)Accounts payable and accrued expenses (63,057)  5,424 Deferred origination fees (150,485)  49,891 Net cash provided by operating activities 4,931,859   5,395,001     Cash flows from investing activities:   Issuance of short-term loans (41,538,217)  (56,087,911)Collections received from loans 49,089,982   57,736,436 Purchase of fixed assets (4,018)  (5,085)Net cash provided by investing activities 7,547,747   1,643,440 Cash flows from financing activities:   (Repayment of) proceeds from line of credit, net (8,724,464)  158,104 Dividends paid (5,233,408)  (5,308,231)Purchase of treasury shares (9,800)  (261,667)Deferred financing costs incurred (2,167)  (38,192)Net cash used in financing activities (13,969,839)  (5,449,986)    Net (decrease) increase in cash and restricted cash (1,490,233)  1,588,455 Cash and restricted cash, beginning of year* 1,691,995   103,540 Cash and restricted cash, end of year*$201,762  $1,691,995     Supplemental Disclosure of Cash Flow Information:   Cash paid during the period for taxes$650  $650 Cash paid during the period for interest$2,323,520  $2,423,838 Cash paid during the period for operating leases$63,084  $64,055     Supplemental Schedule of Noncash Financing Activities:Dividend declared and payable$1,315,445  $1,287,073 Loan holdback relating to mortgage receivable$50,000  $---     Supplemental Schedule of Noncash Operating and Investing Activities:   Reduction in interest receivable in connection with the increase in loans receivable$427,627  $213,465  * At December 31, 2024 and 2023, cash and restricted cash included $23,750 and $1,587,773, respectively, of restricted cash.

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