Manhattan Bridge Capital, Inc. (Nasdaq: LOAN) announced today that its net income for the three months ended September 30, 2020 was approximately $1,151,000, or $0.12 per basic and diluted share (based on approximately 9.6 million weighted-average outstanding common shares), as compared to approximately $1,150,000, or $0.12 per basic and diluted share (based on approximately 9.7 million weighted-average outstanding common shares), for the three months ended September 30, 2019.

Total revenues for the three months ended September 30, 2020 were approximately $1,786,000, as compared to approximately $1,917,000 for the three months ended September 30, 2019, a decrease of $131,000 or 6.8%. The decrease in revenue was primarily attributable to lower interest rates and origination fees charged on loans due to market conditions and intense competition from other lenders, as well as lower demand for new loans resulting from the COVID-19 pandemic. For the three months ended September 30, 2020 and 2019, approximately $1,521,000 and $1,619,000, respectively, of our revenues were attributable to interest income on secured commercial loans that we offer to small businesses, and approximately $265,000 and $298,000, respectively, of our revenues were attributable to origination fees on such loans.

Net income for the nine months ended September 30, 2020 was approximately $3,264,000, or $0.34 per basic and diluted share (based on approximately 9.6 million weighted-average outstanding common shares), as compared to approximately $3,355,000, or $0.35 per basic and diluted share (based on approximately 9.7 million weighted-average outstanding common shares), for the nine months ended September 30, 2019, a decrease of $91,000, or 2.7%. This decrease is primarily attributable to the decrease in revenue, partially offset by the decrease in interest expense.

Total revenues for the nine months ended September 30, 2020 were approximately $5,239,000, as compared to approximately $5,484,000 for the nine months ended September 30, 2019, a decrease of $245,000, or 4.5%. The decrease in revenue was primarily attributable to lower interest rates and origination fees charged on loans due to market conditions and intense competition from other lenders, as well as lower demand for new loans resulting from the COVID-19 pandemic. For the nine months ended September 30, 2020 and 2019, revenues of approximately $4,485,000 and $4,609,000, respectively, were attributable to interest income on the secured commercial loans that we offer to small businesses, and approximately $753,000 and $875,000, respectively, of our revenues were attributable to origination fees on such loans.

Assaf Ran, Chairman of the Board and CEO, stated, “I am pleased to report that our conservative and careful policies have once again proven to protect our shareholders’ value during rough times. Not only do we continue to have no defaults, but we also managed to increase our earnings per share (EPS) to $0.12 for the quarter from $0.11 for the quarter ended June 30, 2020, and to continue distributing dividends during the difficult time we are experiencing due to the COVID-19 crisis.”

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 web site: 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 our conservative and careful policies have protected our shareholders’ value during rough times, we are using forward-looking statements. Readers are cautioned that certain important factors may affect the Company’s 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 borrower’s 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, 2019 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 SUBSIDIARY CONSOLIDATED BALANCE SHEETS

  September 30, 2020    December 31, 2019 
  (unaudited)    (audited) 
Assets      
Loans receivable $ 57,883,068   $ 53,485,014
Interest receivable on loans 809,975   675,996
Cash         156,715   118,407
Other assets 88,554   53,218
Operating lease right-of-use asset, net 52,627   87,754
Deferred financing costs 29,917   22,637
Total assets $ 59,020,856   $ 54,443,026

Liabilities and Stockholders’ Equity      
Liabilities:      
Line of credit $ 19,779,851     $ 15,232,993  
Senior secured notes (net of deferred financing costs of $416,099 and $472,413, respectively)   5,583,901       5,527,587  
Deferred origination fees   452,914       322,119  
Accounts payable and accrued expenses   132,582       151,823  
Operating lease liability   55,566       91,025  
Other liabilities   ---       15,000  
Dividends payable   ---       1,159,061  
Total liabilities   26,004,814       22,499,608  
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; 9,882,058 issued; 9,619,945 and 9,658,844 outstanding, respectively   9,882       9,882  
Additional paid-in capital   33,153,830       33,144,032  
Treasury stock, at cost – 262,113 and 223,214 shares   (798,939 )     (619,688 )
Retained earnings (accumulated deficit)   651,269       (590,808 )
Total stockholders’ equity   33,016,042       31,943,418  
               
Total liabilities and stockholders’ equity $ 59,020,856     $ 54,443,026  

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

  Three Months  Nine Months 
  Ended September 30, Ended September 30,
    2020   2019   2020     2019  
Interest income from loans $ 1,521,474 $ 1,618,735 $ 4,485,414   $ 4,608,936  
Origination fees   264,878   298,222   753,111     875,449  
Total revenue   1,786,352   1,916,957   5,238,525     5,484,385  
         
Operating costs and expenses:        
Interest and amortization of debt service costs   337,901   454,307   1,016,590     1,220,700  
Referral fees   1,641   861   3,569     3,569  
General and administrative expenses   305,407   314,820   968,914     913,175  
Total operating costs and expenses   644,949   769,988   1,989,073     2,137,444  
Income from operations   1,141,403   1,146,969   3,249,452     3,346,941  
Other income   9,500   3,000   15,500     9,000  
Income before income tax expense   1,150,903   1,149,969   3,264,952     3,355,941  
Income tax expense   ---   ---   (645 )   (572 )
Net income $ 1,150,903 $ 1,149,969 $ 3,264,307   $ 3,355,369  
         
Basic and diluted net income per common share outstanding:        
--Basic $ 0.12 $ 0.12 $ 0.34   $ 0.35  
--Diluted $ 0.12 $ 0.12 $ 0.34   $ 0.35  
         
Weighted average number of common shares outstanding        
--Basic   9,625,140   9,658,608   9,635,107     9,657,911  
--Diluted   9,625,140   9,659,764   9,635,107     9,659,012  

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

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2020

  Common Shares Additional Paid in Capital Treasury Stock Retained Earnings Totals
  Shares Amount   Shares Cost    
Balance, July 1, 2020 9,882,058 $ 9,882 $ 33,150,564 255,213 $ (771,559) $ 463,050 $ 32,851,937
Purchase of treasury shares       6,900   (27,380)     (27,380)
Non - cash compensation       3,266         3,266
Dividends paid             (962,684)   (962,684)
Net income             1,150,903   1,150,903
Balance, September 30, 2020 9,882,058 $ 9,882 $ 33,153,830 262,113 $ (798,939) $ 651,269 $ 33,016,042

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2019

  Common Shares Additional Paid in Capital Treasury Stock Retained Earnings Totals
  Shares Amount   Shares Cost    
Balance, July 1, 2019 9,881,191 $ 9,881 $ 33,137,501 223,214 $ (619,688) $ 597,161 $ 33,124,855
Exercise of warrants 867   1   (1)         0
Non-cash compensation       3,266         3,266
Dividends paid             (1,158,957)   (1,158,957)
Net income             1,149,969   1,149,969
Balance, September 30, 2019 9,882,058 $ 9,882 $ 33,140,766 223,214 $ (619,688) $ 588,173 $ 33,119,133

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2020

  Common Shares Additional Paid in Capital Treasury Stock Accumulated Deficit (Retained Earnings) Totals
  Shares Amount   Shares Cost    
Balance, January 1, 2020 9,882,058 $ 9,882 $ 33,144,032 223,214 $ (619,688) $ (590,808) $ 31,943,418
Non-cash compensation       9,798         9,798
Purchase of treasury shares       38,899   (179,251)     (179,251)
Dividends paid             (2,022,230)   (2,022,230)
Net income             3,264,307   3,264,307
Balance, September 30, 2020 9,882,058 $ 9,882 $ 33,153,830 262,113 $ (798,939) $ 651,269 $ 33,016,042

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2019

  Common Shares Additional Paid in Capital Treasury Stock Accumulated Deficit (Retained Earnings) Totals
  Shares Amount   Shares Cost    
Balance, January 1, 2019 9,874,191 $ 9,874 $ 33,110,536 218,214 $ (590,234) $ (448,801) $ 32,081,375
Exercise of options and warrants 7,867   8   20,432         20,440
Purchase of treasury shares       5,000   (29,454)     (29,454)
Non-cash compensation       9,798         9,798
Dividends paid             (2,318,395)   (2,318,395)
Net income             3,355,369   3,355,369
Balance, September 30, 2019 9,882,058 $ 9,882 $ 33,140,766 223,214 $ (619,688) $ 588,173 $ 33,119,133

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

Nine Months Ended September 30,

      Nine Months  
      Ended September 30,       
      2020       2019  
Cash flows from operating activities:        
Net income   $ 3,264,307     $ 3,355,369  
Adjustments to reconcile net income to net cash provided by   operating activities -        
Amortization of deferred financing costs     76,136       70,867  
Adjustment to operating lease right-of-use asset and liability     (333 )     ---  
Depreciation     744       1,157  
Non-cash compensation expense     9,798       9,798  
Changes in operating assets and liabilities:        
Interest receivable on loans     (163,650 )     (167,194 )
Other assets     (35,156 )     (26,209 )
Accounts payable and accrued expenses     (19,241 )     (19,134 )
Deferred origination fees     130,795       (461 )
Net cash provided by operating activities     3,263,400       3,224,193  
         
Cash flows from investing activities:        
Issuance of short term loans     (35,410,076 )     (38,246,965 )
Collections received from loans     31,041,693       33,375,420  
Release of loan holdback relating to mortgage receivable     (15,000 )     ---  
Purchase of fixed assets     (923 )     ---  
Net cash used in investing activities     (4,384,306 )     (4,871,545 )
         
Cash flows from financing activities:        
Proceeds from line of credit, net     4,546,858       5,241,895  
Dividends paid     (3,181,291 )     (3,477,112 )
Purchase of treasury shares     (179,251 )     (29,454 )
Deferred financing costs incurred     (27,102 )     ---  
Proceeds from exercise of stock options     ---       20,440  
Net cash provided by financing activities     1,159,214       1,755,769  
         
Net increase in cash     38,308       108,417  
Cash, beginning of period     118,407       355,057  
Cash, end of period   $ 156,715     $ 463,474  
         
Supplemental Cash Flow Information:        
Taxes paid during the period   $ 645     $ 572  
Interest paid during the period   $ 954,622     $ 1,144,425  
Operating leases paid during the period   $ 40,973     $ 39,628  
         
Non-cash Investing Activities:        
Establishment of right-of-use asset and operating lease liability   $ ---       $ 135,270  
Interest receivable converted to loans receivable in connection with forbearance agreements   $ 29,671       $ ---  
Loan holdback relating to mortgage receivable   $ ---       $ 15,000  
Contact: 
Assaf Ran, CEO 
Vanessa Kao, CFO 
(516) 444-3400 
SOURCE: Manhattan Bridge Capital, Inc.
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