Company: DREM
Filing Date: 2025-08-27
Form Type: 10-Q
Source: 0001641172-25-025675
Chunk: 11

Company: Dream Homes & Development Corp.
Filing Date: 2025-08-27
Form: 10-Q
Item: Item 8
Chunk 11
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 significant commitments with material suppliers
or subcontractors that involve any sums of substance or of long-term duration at the date of issuance of these financial statements.

Employment
Agreements

The
Company currently has no outstanding employment agreements.

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.

    F-12

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 June 30, 2025 and December 31, 2024, the outstanding principal balance was $921,960 and $921,960, respectively.

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 June 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 several subsequent events that were considered material and required disclosure.

1.On July 3,