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. 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 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). 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 (US$5.43m market cap). Minor Risk Share price has been volatile over the past 3 months (15% average weekly change). 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 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 