Company: DREM
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022261
Chunk: 12

Company: Dream Homes & Development Corp.
Filing Date: 2025-11-13
Form: 10-Q
Item: Item 8
Chunk 12
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Lease
Agreements

The
Company has occupied office space located in Forked River, New Jersey. Commencing April 2017, the Company originally paid monthly rent
of $2,000 for this office space. In May of 2020, this amount was subsequently increased to $2,500 per month. As of September of 2023,
the monthly rental amount has increased to $3,000 per month.

Line
of Credit

On
September 15, 2016, DHDC established a $500,000 line of credit with General Development Corp., a non-bank lender. On September 15, 2021,
DHDC increased the existing line of credit from $500,000 to $1,000,000. Advances under the line bear interest at a rate of 12%, with
interest being payable on demand. The outstanding principal is due and payable in 60 months. The line is secured by the guarantee of
the Company as well as the personal guarantee of the Company’s Chief Executive Officer. The agreement to fund automatically renews
on a yearly basis as long as interest payments are current or as agreed. To date, the Company has received several advances under the
line of credit. As of September 30, 2025 and December 31, 2024, the outstanding principal balance was $921,960 and $921,960, respectively.

    F-13

10.
Related Party Transactions

Dream
Homes Ltd. Allocated payroll

The
Company formerly used the services of Shore Custom Homes Corp. (SCHC) personnel for its operations. For the six months ended September
30, 2025 and 2024, the Company’s estimated share of DHL’s gross payroll and payroll taxes include was $203,741.49 and $180,070.21,
respectively. Beginning in 2024, a subsidiary of the Company commenced providing payroll services.

11
- Stock Warrants

The
Company has no outstanding warrants.

12
– Subsequent Events

The
Company has evaluated subsequent events through the date the financial statements are scheduled to be filed and have the following notes
and comments.

The
Company received Little Egg Harbor Preliminary Approvals for 80 market rate townhomes and 16 affordable condominiums on November 7, 2025.
The sale of improved building pads to a national builder should begin in late 2026 / early 2027 and if so, will accrete to 2027