Company: DREM
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004861
Chunk: 142

Company: Dream Homes & Development Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1A
Chunk 142
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 our margins, revenues, and cash flows may also be adversely affected.

If
we are unsuccessful in competing against our homebuilding competitors, our market share could decline or our growth could be impaired
and, as a result, our financial results could suffer. Notwithstanding that potential risk, the barriers to entry in the elevation/renovation
portion of our business are very high, primarily due to the complexity of the home elevation process.

Though
competition in the homebuilding industry is intense, and there are relatively low barriers to entry into the new home building business,
there is markedly less competition in the elevation/renovation portion of the business. This is primarily due to the complexity and technical
difficulty of the home elevation business. Increased competition in the new home building business could hurt our business, as it could
prevent us from acquiring attractive parcels of land on which to build homes or make such acquisitions more expensive, hinder our market
share expansion, and lead to pricing pressures on our homes that may adversely impact our margins and revenues. If we are unable to successfully
compete, our financial results could suffer and the value of, or our ability to service, our debt, including the notes, could be adversely
affected.

In
the elevation/renovation portion of our business, competition has lessened over the last several years, due to the reasons listed above.
Consequently, the Company’s market share of this portion of our business has increased, as competitors have abandoned the elevation
/ renovation business and focused on new home construction, which is markedly less difficult than completing elevation projects.

8

We
could experience a reduction in new home sales and revenues or reduced cash flows due to our inability to acquire land for our housing
developments if we are unable to obtain reasonably priced financing to support our homebuilding activities. Notwithstanding, the elevation/renovation
portion of our business should suffer little or no effect for these reasons, since the primary source of funds for this type of project
is private and client based.

The
new homebuilding industry is capital intensive, and homebuilding requires significant up-front expenditures to acquire land and begin
development. Accordingly, we incur substantial indebtedness to finance our homebuilding activities. Although we believe that internally
generated funds and available borrowings under our revolving credit facility will be available to fund our capital and other expenditures
(including land purchases in connection with ordinary development activities), the amounts available from such sources may not be sufficient.
If such sources are not sufficient, we would seek additional capital in the form