Company: DREM
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004861
Chunk: 111

Company: Dream Homes & Development Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 111
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under Contract to Purchase and in Development

The
Company has signed a contract to obtain approvals, acquire and improve a 96 unit townhome property (of which 80 units are market rate
and 16 are Affordable Housing) in Southern Ocean County. This property has been pre-sold on an “as-improved” basis to a national
builder.

The
initial closing to acquire the property should occur in 2026, with site improvements to begin shortly thereafter. The sale of improved
building pads should begin in late 2026 / early 2027.

Summary

These
new developments which the Company owns or is in contract to purchase represent significant future earnings in new construction or forward
contracts for improved building pads that have been pre-sold. This work will occur over the next 3-4 years and will occur in addition
to the custom homes & elevation/renovation division of the business. Management is very positive about these new developments.

Additional
Comment

The
Company’s business model over the last year has been focused on increasing the new home and new development portion of our business.
New home development has a much greater scalability and growth potential than custom home or elevation/renovation work, and will represent
the majority of the Company’s revenue going forward.

Dream
Homes will continue to pursue opportunities in the real estate field, specifically in new home construction, development approvals and
sale of improved building lots.

The
Company has also developed strong referral networks with 3 major modular manufacturing companies, from which a dependable and steady
stream of leads and prospects is regularly received. Based on these associations, it is anticipated that the Custom Modular segment of
the business will enjoy significant growth for the foreseeable future.

Since
modular home manufacturers will not sell directly to the public, and will only sell to a licensed builder, manufacturers need dependable
new home builders to refer their leads. The Company has proven itself to be a valuable trade partner for these 3 manufacturers and has
received numerous prospects and leads, many of which regularly turn into contracts.

Critical
Accounting Policies and Estimates

Our
discussion and analysis of our financial condition and results of operations are based on our financial statements, which have been prepared
in accordance with U.S. generally accepted accounting principles. The preparation of these financial statements requires us to make estimates
and judgments that affect the reported amounts of assets, liabilities, revenue and expenses and related disclosures. We review our estimates
and judgments on an on-going basis. We base our estimates and judgments on