GlobeNewswire Inc | Apr 14, 2021 07:05AM EDT

April 14, 2021

GREAT NECK, N.Y., April 14, 2021 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (Nasdaq: LOAN) announced today that net income for the three months ended March 31, 2021 was approximately $1,106,000, or $0.12 per basic and diluted share (based on approximately 9.6 million weighted-average outstanding common shares), versus approximately $1,016,000, or $0.11 per basic and diluted share (based on approximately 9.7 million weighted-average outstanding common shares) for the three months ended March 31, 2020, an increase of $90,000, or 8.9%. This increase is primarily attributable to the decreases in interest expense and in general and administrative expenses.

Total revenues for the three months ended March 31, 2021 were approximately $1,729,000 compared to approximately $1,711,000 for the three months ended March 31, 2020, an increase of $18,000, or 1.0%. For the three months ended March 31, 2021, approximately $1,443,000 of our revenue represents interest income on secured commercial loans that we offer to small businesses, compared to approximately $1,474,000 for the same period in 2020, and approximately $286,000 and $237,000, respectively, represent origination fees on such loans. The loans are principally secured by collateral consisting of real estate and, generally, accompanied by personal guarantees from the principals of the borrowers.

As of March 31, 2021, total shareholders' equity was approximately $33,073,000.

Assaf Ran, Chairman of the Board and CEO, stated, I believe that the first quarter of 2021 reflects buds of optimism. We returned to work from the office, of course following all regulations, and our deal flow strengthened to approximately our pre-COVID pace. There are still many concerns. However, most of our loans are secured by first mortgages on 1-4 family houses located outside of Manhattan, a product that has actually appreciated in value during the pandemic. Given current market conditions, and considering the extra safety measures were taking to continue our no defaults track record, I am pleased with the results and hope to return to growth mode in the near future. I wish everyone good health.

About Manhattan Bridge Capital, Inc.

Manhattan Bridge Capital, Inc. offers short-term secured, nonbanking 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.

Forward Looking Statements

This press release and the statements of our representatives related thereto contain or may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the generality of the foregoing, words such as plan, project, potential, seek, may, will, expect, believe, anticipate, intend, could, estimate, or continue are intended to identify forward-looking statements. For example, when we discuss our belief that the first quarter of 2021 reflects buds of optimism, that our deal flow strengthened to approximately our pre-COVID pace and the hope that we will return to growth mode in the near future, we are using forward-looking statements. Readers are cautioned that certain important factors may affect the Companys actual results and could cause such results to differ materially from any forward-looking statements that may be made in this news release. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties. Actual results may differ materially from those projected, expressed or implied in the forward-looking statements as a result of various factors, including but not limited to the following: (i) our loan origination activities, revenues and profits are limited by available funds; (ii) we operate in a highly competitive market and competition may limit our ability to originate loans with favorable interest rates; (iii) our Chief Executive Officer is critical to our business and our future success may depend on our ability to retain him; (iv) if we overestimate the yields on our loans or incorrectly value the collateral securing the loan, we may experience losses; (v) we may be subject to lender liability claims; (vi) our due diligence may not uncover all of a borrowers liabilities or other risks to its business; (vii) borrower concentration could lead to significant losses; (viii) we may choose to make distributions in our own stock, in which case you may be required to pay income taxes in excess of the cash dividends you receive and (ix) if the effect of the COVID-19 pandemic on our business is greater than anticipated. The risk factors contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2020 filed with the Securities and Exchange Commission identify important factors that could cause such differences. These forward-looking statements speak only as of the date of this press release, and we caution potential investors not to place undue reliance on such statements. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARYCONSOLIDATED BALANCE SHEETS

March 31, 2021 December 31, 2020 (unaudited) (audited)AssetsLoans receivable $ 58,490,238 $ 58,097,970Interest receivable on loans 915,132 827,236Cash 205,834 131,654Cash - restricted -- 327,483Other assets 80,977 66,566Operating lease right-of-use asset, net 356,535 369,699Deferred financing costs, net 17,315 22,807Total assets $ 60,066,031 $ 59,843,415

Liabilities and Stockholders Equity

Liabilities: Line of credit $ 20,441,047 $ 20,308,873Senior secured notes (net of deferred financing 5,621,444 5,602,673costs of $378,556 and $397,327, respectively)Deferred origination fees 438,927 367,638Accounts payable and accrued expenses 130,353 168,940Operating lease liability 360,935 372,907Dividends payable -- 1,058,194Total liabilities 26,992,706 27,879,225Commitments and contingencies Stockholders? equity: Preferred stock - $.01 par value; 5,000,000 shares -- --authorized; none issuedCommon stock - $.001 par value; 25,000,000 sharesauthorized; 9,882,058 issued; 9,619,945 9,882 9,882outstandingAdditional paid-in capital 33,160,362 33,157,096Treasury stock, at cost ? 262,113 shares (798,939) (798,939)Retained earnings (accumulated deficit) 702,020 (403,849)Total stockholders? equity 33,073,325 31,964,190Total liabilities and stockholders? equity $ 60,066,031 $ 59,843,415

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY

Three Months Ended March 31, 2021 2020 Interest income from loans $ 1,442,814 $ 1,473,544Origination fees 286,473 237,442Total revenue 1,729,287 1,710,986Operating costs and expenses: Interest and amortization of deferred financing costs 317,186 352,442Referral fees 1,751 542General and administrative expenses 308,981 344,780Total operating costs and expenses 627,918 697,764 Income from operations 1,101,369 1,013,222Other income 4,500 3,000Net income $ 1,105,869 $ 1,016,222 Basic and diluted net income per common share outstanding:--Basic $ 0.12 $ 0.11--Diluted $ 0.12 $ 0.11 Weighted average number of common shares outstanding: --Basic 9,619,945 9,652,539--Diluted 9,619,945 9,652,753

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARYCONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY(unaudited)

FOR THE THREE MONTHS ENDED MARCH 31, 2021

Additional (Accumulated Common Stock Paid-in Treasury Stock Deficit) Totals Capital Retained Earnings Shares Amount Shares Cost Balance, $(798,939January 1, 9,882,058 $9,882 $33,157,096 262,113 ) $(403,849) $31,964,1902021Non-cash 3,266 3,266compensationNet income 1,105,869 1,105,869Balance, $(798,939March 31, 9,882,058 $9,882 $33,160,362 262,113 ) $702,020 $33,073,3252021

FOR THE THREE MONTHS ENDED MARCH 31, 2020

Additional (Accumulated Common Stock Paid-in Treasury Stock Deficit) Totals Capital Retained Earnings Shares Amount Shares Cost Balance, $(619,688 $January 1, 9,882,058 $9,882 $33,144,032 223,214 ) $(590,808) 31,943,4182020Non-cash 3,266 3,266compensationPurchase oftreasury 26,609 (131,036) (131,036)sharesNet income 1,016,222 1,016,222Balance, $(750,724 $March 31, 9,882,058 $9,882 $33,147,298 249,823 ) $425,414 32,831,8702020

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARYCONSOLIDATED STATEMENTS OF CASH FLOWS(unaudited)

Three Months Ended March 31, 2021 2020Cash flows from operating activities: Net income $ 1,105,869 $ 1,016,222Adjustments to reconcile net income to net cash provided byoperating activities -Amortization of deferred financing costs 24,263 24,375Adjustment to operating lease right-of-use 1,192 (261)asset and liabilityDepreciation 587 283Non-cash compensation expense 3,266 3,266Changes in operating assets and liabilities: Interest receivable on loans (87,896) (40,922)Other assets (14,998) (19,683)Accounts payable and accrued expenses (38,587) 13,463Deferred origination fees 71,289 132,369Net cash provided by operating activities 1,064,985 1,129,112 Cash flows from investing activities: Issuance of short term loans (9,659,678) (16,082,435)Collections received from loans 9,267,410 12,753,380Release of loan holdback relating to mortgage -- (15,000)receivablePurchase of fixed assets -- (923)Net cash used in investing activities (392,268) (3,344,978) Cash flows from financing activities: Proceeds from line of credit, net 132,174 3,627,220Dividend paid (1,058,194) (1,159,061)Purchase of treasury shares -- (131,036)Deferred financing costs incurred -- (27,102)Net cash (used in) provided by financing (926,020) 2,310,021activities Net (decrease) increase in cash (253,303) 94,155Cash and restricted cash, beginning of year 459,137 118,407Cash and restricted cash, end of period $ 205,834 $ 212,562

Supplemental Cash Flow Information: Interest paid during the period $ 302,160 $ 328,871Operating leases paid during the period $ 15,849 $ 13,604

SOURCE: Manhattan Bridge Capital, Inc.

Contact:Assaf Ran, CEOVanessa Kao, CFO(516) 444-3400