DREM Swings to Profit on Surging Construction Revenue

TL;DR

**DREM's strategic pivot to selling improved lots is paying off, turning significant losses into a profit, but watch that shrinking cash balance.**

AI Summary

Dream Homes & Development Corp. (DREM) reported a significant turnaround for the six months ended June 30, 2025, with net income attributable to DREM of $65,253, a substantial improvement from a net loss of $866,465 in the prior-year period. Revenue from construction contracts more than doubled to $3,964,624 for the six months ended June 30, 2025, up from $2,131,449 in the same period of 2024. Gross profit also saw a dramatic shift, moving from a loss of $248,369 in 2024 to a profit of $1,240,139 in 2025. The company's cash position, however, decreased significantly to $341,222 as of June 30, 2025, from $1,054,046 at December 31, 2024, primarily due to distributions of $1,297,682 and payments on mortgages totaling $1,511,496. Strategic changes include the sale of improved building pads in the Berkeley Terrace development to a national builder, with 20 pads closed by September 30, 2024, and an additional 8 pads closed on January 24, 2025, and 12 pads on April 24, 2025. A subsequent event on July 3, 2025, involved the sale of another 12 improved building pads for $1,536,429, indicating continued focus on lot sales. Inventories decreased from $7,365,976 to $5,511,770, reflecting these sales.

Why It Matters

This turnaround is crucial for DREM investors, signaling a potential shift from a loss-making entity to profitability, driven by increased construction contract revenue and strategic land sales. The company's move to sell improved lots to national builders, as seen with the Berkeley Terrace development, could provide a more stable revenue stream and reduce direct construction risk, impacting competitive dynamics in the regional housing market. For employees, this improved financial health could mean greater job security and potential growth opportunities. Customers might see DREM as a more reliable partner for development projects. The broader market could view this as a positive indicator for smaller regional developers adapting to market conditions by leveraging land assets.

Risk Assessment

Risk Level: medium — While DREM achieved profitability, its cash balance significantly decreased by $712,824 for the six months ended June 30, 2025, from $1,054,046 to $341,222. This decline was driven by substantial distributions of $1,297,682 and mortgage payments of $1,511,496, which could strain liquidity despite improved operational performance.

Analyst Insight

Investors should monitor DREM's cash flow closely, particularly the impact of future distributions and debt repayments. While the shift to profitability and strategic lot sales are positive, the rapid decline in cash warrants caution. Consider if the current strategy provides sufficient working capital for ongoing operations and future development.

Financial Highlights

debt To Equity

N/A

revenue

$3,964,624

operating Margin

N/A

total Assets

N/A

total Debt

N/A

net Income

$65,253

eps

N/A

gross Margin

31.3%

cash Position

$341,222

revenue Growth

+86%

Revenue Breakdown

Key Numbers

• $65,253 — Net Income (attributable to DREM) (Swung from a $866,465 loss in 2024 to a profit in 2025 for the six months ended June 30.)
• $3,964,624 — Construction Contract Revenue (Increased by 86% from $2,131,449 in 2024 for the six months ended June 30.)
• $1,240,139 — Gross Profit (Improved from a gross loss of $248,369 in 2024 for the six months ended June 30.)
• $341,222 — Cash Balance (Decreased by 67.6% from $1,054,046 at December 31, 2024.)
• $1,297,682 — Distributions (Significant cash outflow during the six months ended June 30, 2025.)
• $1,511,496 — Payments on Mortgages (Significant cash outflow during the six months ended June 30, 2025.)
• 48,564,493 — Common Shares Outstanding (As of August 19, 2025, up from 47,414,493 at December 31, 2024.)
• $1,536,429 — Subsequent Sale of Building Pads (Gross sale amount for 12 improved building pads on July 3, 2025, to be reflected in Q3 income.)
• $5,511,770 — Inventories (Decreased from $7,365,976 at December 31, 2024, reflecting sales of improved lots.)

Key Players & Entities

• Dream Homes & Development Corp. (company) — registrant
• DREM (company) — ticker symbol
• Securities and Exchange Commission (regulator) — filing oversight
• $65,253 (dollar_amount) — net income attributable to DREM for six months ended June 30, 2025
• $866,465 (dollar_amount) — net loss attributable to DREM for six months ended June 30, 2024
• $3,964,624 (dollar_amount) — revenue from construction contracts for six months ended June 30, 2025
• $2,131,449 (dollar_amount) — revenue from construction contracts for six months ended June 30, 2024
• $341,222 (dollar_amount) — cash balance as of June 30, 2025
• $1,054,046 (dollar_amount) — cash balance as of December 31, 2024
• Berkeley Terrace (company) — development project

FAQ

Risk Factors

• Cash Position Decline [medium — financial]: The company's cash balance decreased significantly from $1,054,046 at December 31, 2024, to $341,222 as of June 30, 2025. This was primarily due to substantial cash outflows for distributions ($1,297,682) and mortgage payments ($1,511,496). A continued decline could impact operational flexibility and ability to fund future projects.
• Inventory Management [medium — operational]: Inventories decreased from $7,365,976 to $5,511,770, reflecting successful sales of improved building pads. However, the company's ability to maintain optimal inventory levels and manage development costs remains crucial for sustained profitability.
• Real Estate Market Volatility [high — market]: The company's performance is directly tied to the real estate development market. Fluctuations in housing demand, interest rates, and construction costs can significantly impact revenue and profitability.

Industry Context

The homebuilding and development industry is cyclical and sensitive to economic conditions, interest rates, and consumer confidence. Companies like DREM focus on strategic land development and sales, often to national builders, to mitigate some of these risks. The current market shows a demand for developed lots, as evidenced by DREM's successful sales.

Regulatory Implications

Development projects are subject to local zoning laws, building codes, and environmental regulations. Changes in these regulations or delays in obtaining permits can impact project timelines and costs. Compliance with financial reporting standards (GAAP) is also critical for public companies like DREM.

What Investors Should Do

1. Monitor cash flow and working capital management.
2. Analyze the sustainability of gross margin improvements.
3. Track future lot sales and development pipeline.

Key Dates

• 2025-06-30: Six Months Ended — Reported a significant turnaround with net income of $65,253, compared to a net loss of $866,465 in the prior year. Revenue more than doubled.
• 2025-07-03: Sale of 12 improved building pads — Generated $1,536,429 in gross proceeds, indicating continued success in lot sales and providing a positive outlook for Q3 results.
• 2025-04-24: Closing of 12 improved building pads — Part of the ongoing sales strategy for the Berkeley Terrace development, contributing to inventory reduction and revenue generation.
• 2025-01-24: Closing of 8 improved building pads — Continued sales momentum in the Berkeley Terrace development, demonstrating successful execution of the company's lot sales strategy.
• 2024-09-30: Closing of 20 improved building pads — Initial significant sales within the Berkeley Terrace development, marking a key step in monetizing assets and improving financial performance.
• 2024-12-31: Year End — Cash balance was $1,054,046 and inventories were $7,365,976, providing a baseline for comparison with the current period's significant changes.

Glossary

Construction Contracts Revenue

Revenue recognized from the sale of completed or partially completed construction projects, including developed lots. (This is the primary revenue driver for DREM, and its significant increase indicates successful project execution and sales.)

Gross Profit

Revenue minus the cost of goods sold (in this case, the direct costs associated with construction and development). (The shift from a gross loss to a significant gross profit highlights improved project profitability and cost management.)

Inventories

The value of raw materials, work-in-progress, and finished goods held by the company. For DREM, this primarily includes developed lots and properties under development. (The decrease in inventories reflects the successful sale of developed lots, a key part of the company's strategy.)

Distributions

Payments made by the company to its owners or shareholders, often from profits or retained earnings. (Significant distributions contributed to the decrease in the company's cash balance.)

Year-Over-Year Comparison

Dream Homes & Development Corp. has demonstrated a significant financial turnaround in the six months ended June 30, 2025, compared to the same period in 2024. Revenue from construction contracts more than doubled, increasing by 86% from $2,131,449 to $3,964,624. This revenue growth translated into a substantial improvement in profitability, with gross profit shifting from a loss of $248,369 to a profit of $1,240,139, and net income attributable to DREM swinging from a loss of $866,465 to a profit of $65,253. While operational performance has improved dramatically, the company's cash position has weakened due to significant outflows for distributions and mortgage payments.

Filing Documents

• form10-q.htm (10-Q) — 528KB
• ex31.htm (EX-31) — 7KB
• ex32.htm (EX-32) — 4KB
• 0001641172-25-025675.txt ( ) — 3247KB
• drem-20250630.xsd (EX-101.SCH) — 29KB
• drem-20250630_cal.xml (EX-101.CAL) — 49KB
• drem-20250630_def.xml (EX-101.DEF) — 99KB
• drem-20250630_lab.xml (EX-101.LAB) — 226KB
• drem-20250630_pre.xml (EX-101.PRE) — 182KB
• form10-q_htm.xml (XML) — 378KB

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) F-5

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 3

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKS

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKS 7

CONTROLS AND PROCEDURES

ITEM 4. CONTROLS AND PROCEDURES 7

OTHER INFORMATION

PART II. OTHER INFORMATION 8

LEGAL PROCEEDINGS

ITEM 1. LEGAL PROCEEDINGS 8

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 8

DEFAULTS UPON SENIOR SECURITIES AND CONVERTIBLE NOTES

ITEM 3. DEFAULTS UPON SENIOR SECURITIES AND CONVERTIBLE NOTES 8

MINE SAFETY DISCLOSURES

ITEM 4. MINE SAFETY DISCLOSURES 8

OTHER INFORMATION

ITEM 5. OTHER INFORMATION 8

SIGNATURES

SIGNATURES 10 2 DREAM HOMES AND DEVELOPMENT CORPORATION CONSOLIDATED BALANCE SHEETS June 30, December 31, 2025 2024 (Unaudited) ASSETS CURRENT ASSETS Cash $ 341,222 $ 1,054,046 Accounts receivable, net of allowance for doubtful accounts 159,682 142,595 Inventories 5,511,770 7,365,976 Total current assets 6,012,674 8,562,617 PROPERTY AND EQUIPMENT, net 104,207 115,786 OTHER ASSETS Security deposit 2,200 2,200 Deposits and costs coincident to acquisition of land for development 3,057,133 2,830,018 Other assets 10,900 10,700 Total assets $ 9,187,114 $ 11,521,321 CURRENT LIABILITIES Accounts payable and accrued expenses $ 938,063 $ 1,112,291 Accrued interest 357,572 354,722 Accrued taxes 545,331 338,854 Deposits held 854,762 1,135,714 Construction liabilities 189,852 104,859 Mortgages payable- current - 1,012,538 Loans payable-others 44,607 44,607 Note payable-line of credit 921,960 921,960 Loans payable to related parties 645,689 666,991 Total current liabilities 4,497,836 5,692,536 Long-term mortgages payable 2,571,919 2,942,900 Total liabilities 7,069,755 8,635,436 STOCKHOLDERS' EQUITY Preferred stock; 5,000,000 shares authorized, $ .001 par value, as of June 30, 2025 and December 31, 2024, there are no shares outstanding - - Common stock; 70,000,000 shares authorized, $ .001 par value, as of June 30, 2025 and December 31, 2024, there are 48,564,493 and 47,414,493 shares outstanding, respectively 48,564 47,414 Additional paid-in capital 2,423,452 3,696,984 Retained earnings (accumulated deficit) ( 1,293,241 ) ( 1,358,494 ) Total stockholders' equity attributable to Dream Homes and Development Corporation 1,178,775 2,385,904 Non-controlling interest 938,584 499,981 Total stockholders' equity 2,117,359 2,885,885 Total liabilities and stockholders' equity $ 9,187,114 $ 11,521,321 The accompanying notes are an integral part of the

Properties

Properties currently owned and either improved or under construction Berkeley Terrace – Bayville, NJ – 70 approved townhome units The Company has been in title to this property since 2021 and finalized an infrastructure and construction finance facility which closed on 3/31/23. This facility included refinancing the land debt, securing funding for a large portion of the site construction, as well as funding the first building of 10 townhomes. The amount of the facility was $ 4,670,000 . The Company has retired the remaining debt in January of 2025 and the property currently has no debt. The Company began infrastructure work on the property in June of 2023, with land clearing completed and the site stabilized for soils erosion control. Sanitary sewer, water and drainage has been installed on the entire property. All building pads have been compacted and completed. Base paving has been completed and the entire site has been fully improved. F-8 The Company has entered into an agreement with a national builder to deliver improved building sites for this project. It is in the Company's opinion that the financial advantages inherent in the sale of a portion of the improved lots in this development outweigh the advantages of building and selling or leasing the entire development. The Company sold two 10-unit building pad sites in 2024 to a national builder. Vertical construction of Building 8 began in December of 2023, and Building 1 began in July of 2024. As of September 30, 2024, 20 improved building pads had closed title to the national builder. Building Pad 6, comprised of 8 improved building pads, was sold and closed title on 1/24/25. At that time all underlying debt for this property was retired. 42 improved building pads are scheduled to close in the next 12 months. Building Pad 1, comprised of 12 improved building pads, was sold and closed title on 4/24/25. Subsequent event: On July 3, 2025, the Company sold 12 improved building pads in th

Properties

Properties under Contract to Purchase and in Development Southern Ocean 1 : The Company signed a contract in mid-2024 to obtain approvals, acquire and improve a 96 unit townhome property (of whic

View Full Filing

View this 10-Q filing on SEC EDGAR