Announcement • Sep 25
HCDI Bridge View, LLC Exited Harbor Custom Development, Inc. Bankruptcy HCDI Bridge View, LLC emerged from its Chapter 11 bankruptcy as its plan of reorganization became effective on September 23, 2024. HCDI Bridge View, LLC had filed its plan in the Court on June 27, 2024. Announcement • May 09
Harbor Custom Development Files Form 15 Harbor Custom Development, Inc. has announced that it has filed a Form 15 with the Securities and Exchange Commission to voluntarily deregister its common stock under the Securities Exchange Act of 1934, as amended. Announcement • May 03
Motion for Asset Sale Filed by Harbor Custom Development, Inc. Harbor Custom Development, Inc. filed a motion in the US Bankruptcy Court for the sale of its certain assets on May 1, 2024. The debtor seeks the Court’s approval for the sale of its certain assets to Richmond American Homes of Washington, Inc., for a purchase price of $2.58 million in cash pursuant to the asset purchase agreement, dated April 22, 2024. The debtor’s assets include real property consisting of approximately 27.92 acres of land located in Blaine, Whatcom County, Washington. The sale hearing is scheduled for May 29, 2024. The proceeds from the sale would be used to pay costs of sale, to pay secured real property taxes, and the balance to the secured indebtedness to Fratelli’s LLC. Announcement • Feb 22
Nasdaq Files Form 25-NSE with SEC to Remove Securities of Harbor Custom Development As previously disclosed in a Current Report on Form 8-K filed with the Securities and Exchange Commission on December 27, 2023, due to the Bankruptcy Petition, other pending matters, and in accordance with Listing Rules 5101, 5110(b) and IM-5101-1, The Nasdaq Stock Market LLC suspended trading of Harbor Custom Development, Inc.'s securities on December 21, 2023. On December 21, 2023, the Company's securities began trading over the counter on the OTC Markets' Pink Current Information under the symbols HCDIQ," HCDPQ," HCDWQ," and HCDZQ." On February 15, 2024, Nasdaq filed a Form 25-NSE with the Commission which will remove all of the Company's securities from listing and registration on Nasdaq. Announcement • Dec 21
Harbor Custom Development, Inc.(OTCPK:HCDI.Q) dropped from NASDAQ Composite Index Harbor Custom Development, Inc. has been dropped from Nasdaq Composite Index. Announcement • Dec 16
Nasdaq Determines Harbor Custom Development's Securities to be Delisted from The Nasdaq Stock Market On December 12, 2023, Harbor Custom Development, Inc. (the ‘Company’) received written notice from The Nasdaq Stock Market LLC (‘Nasdaq’) indicating that, following Nasdaq’s review of the Company’s press release related to the Bankruptcy Petition and other publicly available information, and in accordance with Listing Rules 5101, 5110(b) and IM-5101-1, Nasdaq has determined that the Company’s securities will be delisted from The Nasdaq Stock Market. Trading of the Company’s common stock (HCDI), preferred stock (HCDIP), and two classes of warrants (HCDIW and HCDIZ) will be suspended at the opening of trading on December 21, 2023 and a Form 25-NSE will be filed with the Securities and Exchange Commission (the ‘SEC’) which will remove those securities from listing and registration on The Nasdaq Stock Market. Nasdaq based its determination upon concerns related to (i) the Company’s announcement that the Company filed for protection under Chapter 11 of the United States Bankruptcy Code and associated public interest concerns raised by such filing, (ii) the residual equity interest of the existing listed securities holders, and (iii) the Company’s ability to sustain compliance with all requirements for continued listing on Nasdaq. Nasdaq also noted that the Company no longer complied with Nasdaq’s audit committee requirements as set forth in Listing Rule 5605, which cure period to regain compliance was until the earlier of the Company’s next annual shareholders’ meeting or September 18, 2024; or if such shareholders’ meeting was held before March 18, 2024, then the Company must evidence compliance no later than March 18, 2024. The Nasdaq notice also advises the Company of its right to request an appeal of the determination. The Company does not have plans to pursue an appeal. Announcement • Dec 15
Harbor Custom Development, Inc.(NasdaqCM:HCDI) dropped from S&P TMI Index Harbor Custom Development, Inc.(NasdaqCM:HCDI) dropped from S&P TMI Index Announcement • Nov 15
Harbor Custom Development, Inc. Contemplates Bankruptcy. Harbor Custom Development, Inc. is contemplating filing for bankruptcy as of November 14, 2023. According to company's SEC filing, the Company failed to maintain compliance with certain financial covenants within its loan agreements requiring loan amendment or covenant waivers; it has no borrowing availability under its revolving credit facility; it has significant debt of $ 116.7 million maturing over the next 12 months as of September 30, 2023; it had significant uses of cash flows from operations over the past two years; it had a $ 16.9 million net loss during the year ended December 31, 2022, an $ 18.3 million net loss for the third quarter of 2023, and a net loss of $ 27.5 million for the nine months ended September 30, 2023; and the real estate and construction industries are experiencing declining market conditions which have negatively impacted property valuations as well as financing capabilities and terms. Reported Earnings • Aug 15
Second quarter 2023 earnings released: US$3.79 loss per share (vs US$9.20 loss in 2Q 2022) Second quarter 2023 results: US$3.79 loss per share (improved from US$9.20 loss in 2Q 2022). Revenue: US$19.8m (up 93% from 2Q 2022). Net loss: US$6.28m (loss narrowed 2.6% from 2Q 2022). Announcement • Aug 03
Harbor Custom Development, Inc. to Report Q2, 2023 Results on Aug 14, 2023 Harbor Custom Development, Inc. announced that they will report Q2, 2023 results on Aug 14, 2023 Board Change • Aug 01
High number of new and inexperienced directors There are 5 new directors who have joined the board in the last 3 years. The company's board is composed of: 5 new directors. 1 experienced director. No highly experienced directors. Independent Director Larry Swets is the most experienced director on the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Announcement • Jul 21
Harbor Custom Development, Inc. Promotes New Leadership Team Harbor Custom Development, Inc. announced the internal promotion of four of the Companys leadership team, including Yoshi Niino, Kyla Sawtell, Mark Long, and Jennifer Lang. Yoshi Niino, Harbors Director of Accounting since 2022, was promoted to Chief Accounting Officer. Mr. Niino oversees accounting, SEC reporting, and tax for the Company. Mr. Niino has been essential in building the public company accounting, reporting, and internal control infrastructure. Mr. Niino has been a Certified Public Accountant since 2009. Ms. Sawtell, who served as the Companys Senior Director of Operations, was promoted to Vice President of Operations. Ms. Sawtell has 15 years of experience in the real estate, property management, and banking industries. Ms. Sawtell started with Harbor in 2021 and has been instrumental in developing the due diligence, budgeting, and purchasing procedures. Mark Long, Harbors Senior Director of Acquisitions and Construction, was promoted to Vice President of Development and Construction. With extensive experience in multi-family development, Mr. Long is involved in all aspects of the acquisitions and construction process. Mr. Long started with Harbor in 2021 and is essential to sourcing and assessing the Companys future pipeline of projects. Mr. Long is a registered architect in the state of Washington and New York. Jennifer Lang, who served as the Companys Director of Marketing, was promoted to Vice President of Marketing. Ms. Lang has 15 years of diverse marketing experience in the real estate, land development, residential construction, and publishing industries. Ms. Lang started with Harbor in 2021 as a consultant and has been significant in developing the Companys investor, media, and public relations to increase Harbors national brand awareness. Announcement • Jul 14
Harbor Custom Development, Inc. Approves the Appointment of D. David Chandler as Director Harbor Custom Development, Inc. at the AGM held on July 12, 2023, approved the appointment of D. David Chandler as Director. Announcement • Jun 29
Harbor Custom Development, Inc. Announces Executive Changes, Effective July 21, 2023 On June 20, 2023, Lance Brown, principal financial officer, and principal accounting officer of Harbor Custom Development, Inc. notified the company of his decision to resign, effective at the close of business on July 21, 2023. Effective July 21, 2023 and until a successor has been identified, the company expects to promote Yoshi Niino to the position of Chief Accounting Officer. Upon assuming this role, he will also assume the duties of the company’s principal financial officer and principal accounting officer for Securities and Exchange Commission reporting purposes, until such time as it complete search process for a Chief Financial Officer. Mr. Niino joined the company in February 2022, and currently serves as the company’s Director of Accounting. Previously to joining the Company, Mr. Niino served as Senior Internal Audit Manager for Weyerhaeuser. Mr. Niino was also previously an Audit Manager at Deloitte. Mr. Niino is a Certified Public Accountant and graduated from the University of Washington with a B.A. in Economics and Business Administration, Accounting. Announcement • Jun 27
Harbor Custom Development, Inc. Announces Change in Executive Leadership, Effective July 21, 2023 Harbor Custom Development, Inc. announced Lance Brown, Chief Financial Officer, will be resigning from the Company, effective July 21, 2023. Mr. Brown’s decision to resign does not relate to any disagreement with the Company’s management, the Board of Directors of the Company, or the Company’s independent auditors regarding any matter pertaining to the Company’s operations, accounting practices, financial disclosures, internal controls, policies, or practices. The Company has initiated a search for a new Chief Financial Officer to fill this position. The Company expects to promote Yoshi Niino, Harbor’s Director of Accounting since February 2022, to Chief Accounting Officer effective July 21, 2023. Upon assuming this role, Mr. Niino will execute the duties of the Company’s principal financial officer and principal accounting officer for Securities and Exchange Commission reporting purposes until the Company hires a new CFO. Prior to joining Harbor, Mr. Niino served as Senior Internal Audit Manager for Weyerhaeuser. Mr. Niino was also previously an Audit Manager at Deloitte. Mr. Niino is a Certified Public Accountant who graduated from the University of Washington with a B.A. in Economics and Business Administration, Accounting. Announcement • Jun 21
Kitsap Community Resources acquired Mills Crossing townhomes in Bremerton from Harbor Custom Development, Inc. (NasdaqCM:HCDI) for $14.25 million. Kitsap Community Resources acquired Mills Crossing townhomes in Bremerton from Harbor Custom Development, Inc. (NasdaqCM:HCDI) for $14.25 million on June 20, 2023. Kitsap Community Resources completed the acquisition of Mills Crossing townhomes in Bremerton from Harbor Custom Development, Inc. (NasdaqCM:HCDI) on June 20, 2023. New Risk • Jun 09
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 99% This is considered a major risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-US$98m free cash flow). Share price has been highly volatile over the past 3 months (28% average weekly change). Earnings have declined by 68% per year over the past 5 years. Shareholders have been substantially diluted in the past year (99% increase in shares outstanding). Market cap is less than US$10m (€5.05m market cap, or US$5.43m). Announcement • May 31
Harbor Custom Development, Inc., Annual General Meeting, Jul 12, 2023 Harbor Custom Development, Inc., Annual General Meeting, Jul 12, 2023, at 10:00 Pacific Standard Time. Agenda: To consider and elect six directors to hold office until next AGM and until their successors are elected and qualified; To consider and discuss the appointment of Rosenberg Rich Baker Berman P.A. as independent registered public accounting firm; to consider and approve the compensation of our named executives officers during the fiscal year ended December 31, 2023; and to discuss other business matters. Announcement • May 18
Harbor Custom Development, Inc. has completed a Follow-on Equity Offering. Harbor Custom Development, Inc. has completed a Follow-on Equity Offering.
Security Name: Common Stock
Security Type: Common Stock
Securities Offered: 1,951,218
Price\Range: $5.125
Discount Per Security: $0.3353
Security Name: Pre-Funded Warrants
Security Type: Equity Warrant
Securities Offered: 1,951,218
Security Name: Warrants
Security Type: Equity Warrant
Securities Offered: 1,951,218 Reported Earnings • May 17
First quarter 2023 earnings released: US$9.39 loss per share (vs US$0.56 loss in 1Q 2022) First quarter 2023 results: US$9.39 loss per share (further deteriorated from US$0.56 loss in 1Q 2022). Revenue: US$9.18m (down 68% from 1Q 2022). Net loss: US$6.77m (loss widened US$6.40m from 1Q 2022). Announcement • May 05
Harbor Custom Development, Inc. to Report Q1, 2023 Results on May 15, 2023 Harbor Custom Development, Inc. announced that they will report Q1, 2023 results at 12:30 PM, US Eastern Standard Time on May 15, 2023 Board Change • Feb 22
High number of new directors Independent Director Chris Corr was the last director to join the board, commencing their role in 2021. Board Change • Jan 20
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Independent Director Chris Corr was the last director to join the board, commencing their role in 2021. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Board Change • Nov 23
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Independent Director Chris Corr was the last director to join the board, commencing their role in 2021. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Aug 16
Second quarter 2022 earnings released: US$0.46 loss per share (vs US$0.063 profit in 2Q 2021) Second quarter 2022 results: US$0.46 loss per share (down from US$0.063 profit in 2Q 2021). Revenue: US$10.3m (down 27% from 2Q 2021). Net loss: US$6.45m (down US$7.38m from profit in 2Q 2021). Over the next year, revenue is forecast to grow 83%, compared to a 3.2% growth forecast for the Consumer Durables industry in Germany. Reported Earnings • May 14
First quarter 2022 earnings released: US$0.028 loss per share (vs US$0.12 loss in 1Q 2021) First quarter 2022 results: US$0.028 loss per share (up from US$0.12 loss in 1Q 2021). Revenue: US$28.6m (up 106% from 1Q 2021). Net loss: US$366.7k (loss narrowed 76% from 1Q 2021). Valuation Update With 7 Day Price Move • May 03
Investor sentiment improved over the past week After last week's 35% share price gain to €3.08, the stock trades at a forward P/E ratio of 107x. Average forward P/E is 11x in the Consumer Durables industry in Germany. Total returns to shareholders of 16% over the past year. Board Change • Apr 27
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Independent Director Chris Corr was the last director to join the board, commencing their role in 2021. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Board Change • Apr 18
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Independent Director Chris Corr was the last director to join the board, commencing their role in 2021. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Nov 18
Third quarter 2021 earnings released: EPS US$0.21 (vs US$0.10 loss in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: US$18.0m (up 131% from 3Q 2020). Net income: US$3.08m (up US$3.51m from 3Q 2020). Profit margin: 17% (up from net loss in 3Q 2020). Board Change • Sep 02
High number of new and inexperienced directors There are 5 new directors who have joined the board in the last 3 years. The company's board is composed of: 5 new directors. 1 experienced director. No highly experienced directors. Independent Director Larry Swets is the most experienced director on the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Executive Departure • Sep 01
Director Richard Schmidtke has left the company On the 27th of August, Richard Schmidtke's tenure as Director ended after 2.9 years in the role. As of June 2021, Richard still personally held 123.87k shares (€337k worth at the time). A total of 3 executives have left over the last 12 months. Reported Earnings • Aug 18
Second quarter 2021 earnings released: EPS US$0.063 (vs US$0.12 loss in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: US$14.1m (up 70% from 2Q 2020). Net income: US$931.6k (up US$1.36m from 2Q 2020). Profit margin: 6.6% (up from net loss in 2Q 2020). The move to profitability was driven by higher revenue. Executive Departure • Jul 20
Director Robb Kenyon has left the company On the 8th of July, Robb Kenyon's tenure as Director ended after 2.8 years in the role. As of March 2021, Robb still personally held 33.78k shares (€89k worth at the time). A total of 2 executives have left over the last 12 months. Reported Earnings • May 19
First quarter 2021 earnings released: US$0.12 loss per share (vs US$0.21 loss in 1Q 2020) The company reported a mediocre first quarter result with increased losses and weaker control over costs, although revenues improved. First quarter 2021 results: Revenue: US$13.9m (up 40% from 1Q 2020). Net loss: US$1.55m (loss widened 106% from 1Q 2020). Reported Earnings • Apr 03
Full year 2020 earnings released: US$0.84 loss per share (vs US$0.067 profit in FY 2019) The company reported a mediocre full year result with weaker earnings and weaker control over costs, although revenues improved. Full year 2020 results: Revenue: US$50.4m (up 63% from FY 2019). Net loss: US$3.53m (down US$3.77m from profit in FY 2019). Valuation Update With 7 Day Price Move • Feb 28
Investor sentiment deteriorated over the past week After last week's 23% share price decline to US$2.40, the stock is trading at a trailing P/E ratio of 51.9x, down from the previous P/E ratio of 67x. This compares to an average P/E of 27x in the Consumer Durables industry in Germany. Valuation Update With 7 Day Price Move • Feb 13
Investor sentiment improved over the past week After last week's 19% share price gain to US$3.26, the stock is trading at a trailing P/E ratio of 63.8x, up from the previous P/E ratio of 53.6x. This compares to an average P/E of 26x in the Consumer Durables industry in Germany. Recent Insider Transactions • Jan 21
Independent Director recently bought €87k worth of stock On the 15th of January, Larry Swets bought around 35k shares on-market at roughly €2.48 per share. This was the largest purchase by an insider in the last 3 months. This was the only on-market transaction from insiders over the last 12 months. Valuation Update With 7 Day Price Move • Jan 14
Investor sentiment deteriorated over the past week After last week's 16% share price decline to US$2.93, the stock is trading at a trailing P/E ratio of 57.8x, down from the previous P/E ratio of 68.5x. This compares to an average P/E of 27x in the Consumer Durables industry in Germany. Valuation Update With 7 Day Price Move • Jan 07
Investor sentiment improved over the past week After last week's 21% share price gain to US$4.00, the stock is trading at a trailing P/E ratio of 71x, up from the previous P/E ratio of 58.6x. This compares to an average P/E of 27x in the Consumer Durables industry in Germany.