DREM Revenue Soars 61% as Strategic Shift Boosts Income

TL;DR

**DREM's revenue exploded, but watch that cash burn – they're making big distributions and selling off lots, which could be smart or a red flag.**

AI Summary

Dream Homes & Development Corp. (DREM) reported a significant increase in revenue and net income for the nine months ended September 30, 2025. Construction contracts revenue surged to $6,970,494, up from $4,313,707 in the prior year, representing a 61.6% increase. Net income attributable to DREM also saw a substantial rise to $367,503 for the nine-month period, compared to $59,167 in 2024. However, the company experienced a decrease in cash, falling from $1,054,046 at December 31, 2024, to $463,087 by September 30, 2025, primarily due to significant distributions of $3,025,422. Inventories decreased from $7,365,976 to $5,460,941, indicating sales activity. A key strategic change involves an agreement with a national builder to deliver improved building sites for the Berkeley Terrace / Cedar Creek Towns project, shifting from building and selling or leasing the entire development. The company also retired remaining debt on the Berkeley Terrace property in January 2025, making it debt-free.

Why It Matters

This filing reveals DREM's strong operational performance with a 61.6% revenue increase, signaling robust demand in the housing market. The strategic pivot to selling improved lots to a national builder for the Berkeley Terrace project could de-risk future development and accelerate cash flow, potentially making DREM a more attractive investment compared to smaller, less diversified builders. For investors, the substantial distributions, while reducing cash, might indicate a return of capital or a strategic reallocation. Employees and customers could benefit from increased project activity and partnerships with larger builders, potentially leading to more stable operations and higher quality developments. The broader market could see this as a sign of continued strength in regional real estate development, especially in New Jersey.

Risk Assessment

Risk Level: medium — The company's cash balance decreased significantly from $1,054,046 to $463,087, a 56% drop, primarily due to $3,025,422 in distributions. While net income is up, this cash outflow could impact liquidity for future operations or unexpected expenses. Additionally, the shift to selling improved lots to a national builder, while potentially beneficial, introduces reliance on a single large customer for a significant project.

Analyst Insight

Investors should scrutinize the nature and frequency of the large distributions, as they significantly reduced the company's cash reserves despite strong revenue growth. Evaluate the long-term implications of partnering with a national builder for lot sales versus direct development, considering potential impacts on profit margins and future growth strategy. Monitor cash flow closely in subsequent filings.

Financial Highlights

debt To Equity

N/A

revenue

$6,970,494

operating Margin

N/A

total Assets

N/A

total Debt

$2,650,000

net Income

$367,503

eps

N/A

gross Margin

N/A

cash Position

$463,087

revenue Growth

+61.6%

Revenue Breakdown

Key Numbers

• $6.97M — Construction Contracts Revenue (Increased 61.6% from $4.31M in 2024 for the nine months ended September 30, 2025.)
• $367.5K — Net Income Attributable to DREM (Increased from $59.1K in 2024 for the nine months ended September 30, 2025.)
• $463.1K — Cash Balance (Decreased 56% from $1.05M at December 31, 2024, to September 30, 2025.)
• $3.03M — Distributions (Significant cash outflow during the nine months ended September 30, 2025.)
• 48,564,493 — Common Shares Outstanding (As of November 13, 2025, up from 47,414,493 at December 31, 2024.)
• $5.46M — Inventories (Decreased from $7.37M at December 31, 2024, indicating sales activity.)
• $2.75M — Deposits and costs for land development (Slightly decreased from $2.83M at December 31, 2024, but still a significant asset.)
• $2.65M — Long-term mortgages payable (Decreased from $2.94M at December 31, 2024, showing debt reduction.)

Key Players & Entities

• Dream Homes & Development Corp. (company) — registrant
• DREM (company) — ticker symbol
• $6,970,494 (dollar_amount) — construction contracts revenue for nine months ended Sept 30, 2025
• $4,313,707 (dollar_amount) — construction contracts revenue for nine months ended Sept 30, 2024
• $367,503 (dollar_amount) — net income attributable to DREM for nine months ended Sept 30, 2025
• $59,167 (dollar_amount) — net income attributable to DREM for nine months ended Sept 30, 2024
• $463,087 (dollar_amount) — cash balance as of September 30, 2025
• $1,054,046 (dollar_amount) — cash balance as of December 31, 2024
• $3,025,422 (dollar_amount) — total distributions for nine months ended Sept 30, 2025
• Berkeley Terrace / Cedar Creek Towns (company) — development project

FAQ

Risk Factors

• Cash Flow Volatility [medium — financial]: The company's cash balance decreased significantly from $1,054,046 to $463,087, primarily due to substantial distributions of $3,025,422. This highlights a reliance on cash generation from operations and potential vulnerability to large payouts.
• Project Development Strategy Shift [medium — market]: The shift in strategy for Berkeley Terrace / Cedar Creek Towns, from building and selling/leasing entire developments to delivering improved building sites to a national builder, introduces new partnership dynamics and revenue recognition patterns.
• Inventory Management [medium — financial]: While inventories decreased from $7,365,976 to $5,460,941, indicating sales activity, a substantial remaining balance still represents capital tied up in development and subject to market absorption rates.
• Debt Reduction and Distributions [low — financial]: The retirement of debt on the Berkeley Terrace property in January 2025 is positive, but the large distributions suggest a focus on returning capital to shareholders, which could impact future reinvestment capacity.

Industry Context

The homebuilding and development sector is characterized by cyclical demand influenced by interest rates, economic conditions, and consumer confidence. Companies like DREM operate in a competitive landscape, requiring efficient project management, land acquisition, and sales strategies to navigate market fluctuations and achieve profitability.

Regulatory Implications

As a development company, DREM is subject to local zoning laws, building codes, environmental regulations, and land use policies. Compliance with these regulations is crucial for project approvals and timely execution, with potential delays or increased costs arising from regulatory changes or challenges.

What Investors Should Do

1. Monitor cash flow and distribution policy
2. Analyze the impact of the new development strategy
3. Evaluate inventory turnover and sales pipeline

Key Dates

• 2025-01-01: Retirement of remaining debt on Berkeley Terrace property — Makes the Berkeley Terrace property debt-free, simplifying its financial structure and potentially improving borrowing capacity for future projects.
• 2025-09-30: End of the nine-month period — Reporting period for the significant revenue and net income growth, as well as the decrease in cash and inventory.
• 2024-12-31: End of the prior fiscal year — Baseline for comparison of cash, inventory, and debt levels.

Glossary

Construction Contracts Revenue

Revenue recognized from the sale of properties or the completion of construction services under contract. (The primary revenue driver for DREM, showing substantial growth in the current period.)

Inventories

Costs associated with properties held for sale or development. This includes land, work-in-progress, and completed units. (A significant asset for DREM, its decrease indicates successful sales and project completion.)

Deposits and costs for land development

Expenditures made for acquiring land and preparing it for construction, including zoning, permits, and infrastructure. (Represents future development potential and investment in the company's pipeline.)

Long-term mortgages payable

Obligations to lenders for funds borrowed to finance real estate projects, due beyond one year. (Indicates the company's leverage and financing structure; a decrease shows debt repayment.)

Distributions

Payments made by the company to its shareholders, typically from profits or retained earnings. (A significant cash outflow that impacted the company's liquidity.)

Year-Over-Year Comparison

Dream Homes & Development Corp. has demonstrated robust top-line growth, with construction contracts revenue increasing by 61.6% to $6.97 million for the nine months ended September 30, 2025, compared to the prior year. This surge in revenue has translated into a substantial increase in net income, rising to $367,503 from $59,167. However, the company's cash position has weakened considerably, falling by 56% to $463,087, largely due to significant distributions of $3.03 million, while inventories have decreased, signaling active sales.

Filing Documents

• form10-q.htm (10-Q) — 570KB
• ex31.htm (EX-31) — 11KB
• ex32.htm (EX-32) — 6KB
• 0001493152-25-022261.txt ( ) — 3439KB
• drem-20250930.xsd (EX-101.SCH) — 32KB
• drem-20250930_cal.xml (EX-101.CAL) — 50KB
• drem-20250930_def.xml (EX-101.DEF) — 106KB
• drem-20250930_lab.xml (EX-101.LAB) — 241KB
• drem-20250930_pre.xml (EX-101.PRE) — 191KB
• form10-q_htm.xml (XML) — 416KB

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 September 30, December 31, 2025 2024 (Unaudited) ASSETS CURRENT ASSETS Cash $ 463,087 $ 1,054,046 Accounts receivable, net of allowance for doubtful accounts 192,479 142,595 Inventories 5,460,941 7,365,976 Total current assets 6,116,507 8,562,617 PROPERTY AND EQUIPMENT, net 98,418 115,786 OTHER ASSETS Security deposit 2,200 2,200 Deposits and costs coincident to acquisition of land for development 2,748,170 2,830,018 Prepaid contract interest 190,000 - Other assets 10,900 10,700 Total assets $ 9,166,195 $ 11,521,321 CURRENT LIABILITIES Accounts payable and accrued expenses $ 762,550 $ 1,112,291 Accrued interest 380,918 354,722 Accrued taxes 538,621 338,854 Deposits held 649,784 1,135,714 Construction liabilities 84,191 104,859 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 606,999 666,991 Total current liabilities 3,989,630 5,692,536 Long-term mortgages payable 2,647,479 2,942,900 Total liabilities 6,637,109 8,635,436 STOCKHOLDERS' EQUITY Preferred stock; 5,000,000 shares authorized, $ .001 par value, as of September 30, 2025 and December 31, 2024, there are no shares outstanding - - Common stock ; 70,000,000 shares authorized, $ .001 par value, as of September 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 695,712 3,696,984 Retained earnings (accumulated deficit) ( 990,991 ) ( 1,358,494 ) Total stockholders' equity attributable to Dream Homes and Development Corporation ( 246,715 ) 2,385,904 Non-controlling interest 2,775,801 499,981 Total stockholders' equity 2,529,086 2,885,885 Total liabilities and stockholders' equity $ 9,166,195 $ 11,521,3

Properties

Properties currently owned and either improved or under construction Berkeley Terrace / Cedar Creek Towns – 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. On July 3, 2025, the Company sold 12 improved building pads in

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View this 10-Q filing on SEC EDGAR