# EDGAR Filing Document

**Accession Number:** 0001462371
**File Stem:** 0001477932-26-002413
**Filing Date:** 2026-4
**Character Count:** 257658
**Document Hash:** edcf59a595bc8f80cac5d2280e5eed3f
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001477932-26-002413.hdr.sgml**: 20260420

**ACCESSION NUMBER**: 0001477932-26-002413

**CONFORMED SUBMISSION TYPE**: 1-K

**PUBLIC DOCUMENT COUNT**: 7

**CONFORMED PERIOD OF REPORT**: 20251231

**FILED AS OF DATE**: 20260420

**DATE AS OF CHANGE**: 20260420

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Iron Bridge Mortgage Fund, LLC
- **CENTRAL INDEX KEY:** 0001462371
- **STANDARD INDUSTRIAL CLASSIFICATION:** REAL ESTATE [6500]
- **ORGANIZATION NAME:** 05 Real Estate & Construction
- **EIN:** 263458758
- **STATE OF INCORPORATION:** OR
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 1-K
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 24R-00149
- **FILM NUMBER:** 26875118

**BUSINESS ADDRESS:**
- **STREET 1:** 9755 SW BARNES ROAD SUITE 420
- **CITY:** PORTLAND
- **STATE:** OR
- **ZIP:** 97225
- **BUSINESS PHONE:** 503-225-0300

**MAIL ADDRESS:**
- **STREET 1:** 9755 SW BARNES ROAD SUITE 420
- **CITY:** PORTLAND
- **STATE:** OR
- **ZIP:** 97225

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Iron Bridge Mortgage Fund LLC
- **DATE OF NAME CHANGE:** 20090421

## Part

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 1-K**

**ANNUAL REPORT**

**ANNUAL REPORT PURSUANT TO REGULATION A OF THE SECURITIES ACT OF 1933**

**For the fiscal year ended <u>December 31, 2025</u>**

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| |
|:---|
| **IRON BRIDGE MORTGAGE FUND, LLC** |
| (Exact name of issuer as specified in its charter) |

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| | |
|:---|:---|
| **Oregon** | **26-3458758** |
| (State or other jurisdiction of<br> incorporation or organization) | (IRS Employer<br> Identification Number) |
| **9755 SW Barnes Road, Suite 420,** <br> **Portland, OR** | **97225** |
| (Address of principal executive offices) | (Zip code) |

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**<u>(503) 225-0300</u>**

(Registrant's telephone number, including area code)

**<u>Class A, Class B, Class C and Class D Units</u>**

(Title of each class of securities issued pursuant to Regulation A)

**IRON BRIDGE MORTGAGE FUND, LLC**

**ANNUAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2025**

**TABLE OF CONTENTS**

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|  |  | **PAGE** |
| [ITEM 1](#i1) | [BUSINESS](#i1) | 4 |
| [ITEM 2](#i2) | [MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](#i2) | 27 |
| [ITEM 3](#i3) | [DIRECTORS AND OFFICERS](#i3) | 37 |
| [ITEM 4](#i4) | [SECURITY OWNERSHIP OF MANAGEMENT AND CERTAIN SECURITYHOLDERS](#i4) | 39 |
| [ITEM 5](#i5) | [INTEREST OF MANAGEMENT AND OTHERS IN CERTAIN TRANSACTIONS](#i5) | 41 |
| [ITEM 6](#i6) | [OTHER INFORMATION](#i6) | 42 |
| [ITEM 7](#i7) | [FINANCIAL STATEMENTS](#i7) | 43 |
| [ITEM 8](#i8) | [EXHIBITS](#i8) | 45 |

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**FORWARD-LOOKING STATEMENTS**

This Annual Report on Form 1-K (the "Form 1-K") of Iron Bridge Mortgage Fund, LLC (the "Company" or "IBMF") includes forward-looking statements within the meaning of the federal securities laws. Forward-looking statements are generally identifiable by the use of words such as "may," "should," "expects," "plans," "believes," "estimates," "predicts," "potential," and other similar words or expressions. Such statements include information concerning our plans, expectations, possible or assumed future results of operations, trends, financial results and business plans, and involve risks and uncertainties that are difficult to predict and subject to change based on various important factors, many of which are beyond our control. Such factors include, but are not limited to, those discussed in the "*Risk Factors*" section of our Offering Circular dated August 5, 2025, as amended and supplemented to date (the "Offering Circular"). These and other important factors could cause actual results to differ materially from those contained in any forward-looking statement. You should not place undue reliance on our forward-looking information and statements. The forward-looking statements included in this Form 1-K are made as of the date of this Form 1-K, and we do not intend, and assume no obligation, to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements. All forward-looking statements contained in this Form 1-K are expressly qualified by these cautionary statements. Statements other than statements of historical fact are forward-looking statements.

The historical results described in this Form 1-K with respect to previous mortgage lending are historical only, and were influenced by available opportunities, diverse market conditions and other factors beyond the control of the Company. Any projections made in this Form 1-K are based on historical examples and the Company's estimates of future conditions. There is no assurance that lending opportunities experienced in the past will occur in the future, or that market conditions will be as favorable to the Company as they have been in the past. The actual results experienced by the Company will differ, and such variation could be material.

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**ITEM 1 BUSINESS**

**Overview** 

The Company was formed in 2009 as an Oregon limited liability company for the purpose of making commercial purpose loans ("*Portfolio Loans"*) by lending funds to real estate investors ("*Portfolio Borrowers*") to finance the ownership, entitlement, development or rehabilitation of residential and commercial real estate ("*Projects*") throughout the United States. The Company has no employees and is managed by Iron Bridge Management Group, LLC, an Oregon limited liability company (the "*Manager*"), which is owned by Gerard Stascausky and operated by Gerard Stascausky (the "*Managing Director*"). The Company may lease certain employees from the Manager from time to time, and the amount of any employee leasing payments made are deducted from the loan servicing fees payable to the Manager. Gerard Stascausky brings to the Company over 16 years of investment banking experience, over 21 years of distressed real estate investment experience, and over 18 years of private real estate lending experience. The Manager provides Portfolio Loan origination and servicing services to the Company. See "*Item 3 Directors and Officers*" on Page 37 of this Form 1-K.

The Company's primary business is to provide commercial purpose loans for the acquisition and rehabilitation of distressed residential and commercial real estate as well as to provide opportunistic financing for real estate development and construction. The Company's primary sources of investment capital are its membership interests ("*Equity Program*"), and secured or unsecured revolving lines of credit or other borrowings with bank lenders ("*Bank Borrowings*"), each as discussed in greater detail below. All operating expenses are paid from investment profits after interest expense is paid on Bank Borrowings. The commercial purpose loans extended by the Company are based upon underwriting criteria the Manager has found to be successful in the past.

The Company also has a wholly owned subsidiary, Iron Bridge Realty LLC, an Oregon limited liability company ("*Iron Bridge Realty*"). Iron Bridge Realty was formed to hold real estate acquired by the Company through foreclosure or deed-in-lieu transactions ("*Real Estate Owned*" or "*REO*") and currently has no operating activity. The use of Iron Bridge Realty is intended to provide structural and asset-level liability protection to the Company while preserving the economic benefits of such assets for the Company's members. The Company utilizes this structure as part of its overall compliance with real estate investment trust ("*REIT*") requirements, including the management and holding of REO assets in a manner consistent with applicable REIT qualification rules.

In September 2024, the Company organized a new wholly-owned taxable REIT subsidiary, Iron Bridge Mortgage Fund 2, LLC ("*IBMF 2*"). This subsidiary was created to facilitate the programmatic sale of mortgage loans, which is not permitted in a traditional REIT structure. The Company anticipates IBMF 2 to be additive to the Company's earnings.

The Company's investments are exclusively in non-owner occupied real estate loans, and to a much smaller extent Real Estate Owned assets, as discussed in greater detail below. The Company does not originate new owner-occupied residential loans of any kind.

**REIT Status**

The Company has elected to be treated as a corporation taxed as a "real estate investment trust" ("*REIT*") for U.S. federal income tax purposes under the Code, commencing with its taxable year ended December 31, 2022. A REIT is an entity entitled to special and beneficial U.S. federal income tax treatment, provided it satisfies various requirements relating to its organization, its ownership, its distributions and the nature of its assets and income. Among other requirements, a REIT generally must derive most of its income from real estate loans and real property and its assets predominantly must consist of such loans and real property. The entity must make a special election under the Internal Revenue Code of 1986, as amended (the "Code") to be treated as a corporation taxed as a REIT.

Subject to a number of significant exceptions, an entity that qualifies as a REIT generally is not subject to U.S. federal corporate income taxes on income and gain that it distributes annually to its members. Generally, the benefits of investing in a REIT include (i) 20% 199A tax deduction for taxable investors; (ii) no unrelated business taxable income (UBTI) tax for tax advantaged investors, (iii) simplified annual tax reporting form 1099-DIV, and (iv) investor state taxation based on the investor's state of residence (no multi-state tax filing requirements). However, a REIT nonetheless may be subject to a variety of taxes, including payroll taxes and state, local and foreign income, property, gross receipts and other taxes on its assets and operations.

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Among other requirements, a REIT generally must derive most of its income from real estate loans and real property and its assets predominantly must consist of such loans and real property. It also must be beneficially owned by 100 or more persons, and have not more than 50% in value of its outstanding stock owned, directly or indirectly, by five or fewer individuals, as determined under the Code. The Company must also make a special election under the Code to be treated as a corporation taxed as a REIT, which the Company did on its 2022 tax return. The Company's failure to qualify as a REIT would cause us to be treated as a regular corporation subject to U.S. federal income tax and potentially state and local tax.

In addition to the above requirements, to obtain the favorable tax treatment accorded to REITs, the Company normally will be required each year to distribute to members at least 90% of its REIT taxable income, determined without regard to the deduction for dividends paid and by excluding net capital gains. In the event regular distributions are insufficient to meet the distribution requirements applicable to a REIT, the Company alternatively may arrange for borrowings in order to maintain its REIT status, issue a qualifying distribution of additional equity, or take advantage of "consent dividend" procedures in which the Company is deemed to have distributed, and the Company's members would be deemed to have received, taxable dividends without the payment of actual cash. Failure to make required distributions may result in additional taxes and penalties to the Company.

**Company Vision** 

We believe that the real estate finance industry is in the process of a major transformation that should create significant value for borrowers, investors and real estate finance companies. Technology and new securities laws should drive increased efficiency. For borrowers, this should mean lower interest rates and better service. For investors, this should mean superior risk-adjusted returns that are not available in the public markets. And for the innovative companies that lead this change, it should mean an opportunity to create value while effectively managing risk.

**Background and Strategy** 

Real estate finance markets are highly fragmented, with numerous large, mid-size, and small lenders and investment companies, such as banks, savings and loan associations, credit unions, insurance companies, institutional lenders and private lenders all competing for investment opportunities. Many of these market participants experienced losses in the real estate market, which started to decline in 2006 and reached its bottom in 2012. As a result of credit losses and restrictive government oversight, many of these financial institutions are not participating in this market to the extent they had before the credit crisis. In addition, it appears that the number of banks and other institutional lenders willing to lend for the acquisition and rehabilitation of commercial and residential investment properties has decreased. In particular, we believe that banks and other institutional lenders are generally more reluctant to lend money secured by residential property until the property is constructed or fully renovated and either rented or ready for purchase by an owner-occupant. Rehabbers and developers particularly rely on private lending sources such as the Company to fill the need for financing between the time a property is purchased and the time, after construction or rehabilitation, when it is ready to be rented or sold. We believe the Company fills a significant gap by providing much needed financing of this type for areas with a growing need for such financing, and that profitable investment opportunities will be available to the Company based on the fragmented nature of the rehab lending market and the limited competition from banks and other institutional lenders.

**Why Private Lending Offers Asymmetrical Investment Returns** 

The Company believes that its Portfolio Loan investments can earn a higher rate of return per unit of risk compared to public market investments (e.g., publicly-traded stocks and bonds) because the private lending markets in which it operates are less efficient than public markets. The efficient market theory generally assumes two things: (1) information is ubiquitous and (2) capital moves freely. These two assumptions are important in understanding why we believe that the private lending industry can produce asymmetrical investment returns, which can be defined simply as higher rates of investment return per unit of risk than the efficient market theory would suggest.

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The first assumption, "information is ubiquitous," generally means that all investors know about all investments available and have analyzed all the information available related to those investments. In the public markets this assumption is often true. For example, large investment funds with billions of dollars in investment capital often employ large staffs of analysts, each dedicated to specific industries or companies. The public companies they analyze are generally required by law to disclose material information to the public in a timely manner. When new information is made available, these analysts can quickly assimilate the information and invest accordingly. These conditions make information ubiquitous in the public markets, but these conditions generally do not hold true in the private lending industry for rehab and new construction projects.

The second assumption, "capital moves freely," generally means that investors are able and motivated to allocate capital among investment opportunities in a way that always maximizes the investment return per unit of risk. Again, in the public markets, this assumption is often true. For example, large investment funds are generally competing to attract investment capital by earning a superior investment return relative to their peers and are therefore motivated to reallocate investment capital in order to maximize investment returns. In addition, the public markets are generally liquid and allow these institutional investors to buy and sell quickly with minimal transactional costs. These conditions allow capital to move freely in the public markets, but these conditions generally do not exist in the private lending industry for rehab and new construction projects.

By comparison, within the private lending industry information generally is not ubiquitous and capital generally does not move freely. For example, private lenders in Colorado or Texas may not necessarily know about lending opportunities in Oregon or Washington. Moreover, even if those private lenders were made aware of these lending opportunities, the private lenders may not be interested or structurally capable of evaluating and funding the loans in the timeframes required. Further, capital generally does not move freely in the private lending industry for rehab and new construction projects. For example, the largest lenders in the real estate industry are banks, which are both government regulated and structurally challenged to move quickly. Government regulations often dissuade banks from pursuing certain types of profitable loans in order to comply with larger risk management overlays. The banks are also often structured in ways that make them relatively slow in analyzing and funding loans. What this means is that the private lending industry for rehab and new construction projects is fragmented and relatively inefficient and does not comply with the efficient market theory's assumptions of ubiquitous information flow and free movement of capital. This inefficiency provides an opportunity for participants in the private lending industry to earn asymmetrical investment returns, or, in other words, a higher rate of return per unit of risk versus public market investments as indicated in the following graph.

**Defensive Attributes of the Company's Business Model** 

While there can be no guaranty that investors in the Company will not suffer a loss on their investment, we believe that the Company's business model has certain defensive attributes that may allow the Company to perform relatively well in adverse economic environments. The following is a list of defensive business model attributes that we believe have allowed the Company to earn an attractive investment return with no loss to investors from Company inception (2009) through the date of this Form 1-K. However, there can be no assurance that these attributes would provide the same level of protection in the future. Financial results as of and for the period ended December 31, 2025 have been audited.

***The Company does not rely on increases or decreases in real estate prices.*** The Company's investment returns are primarily derived from the interest payments and fees paid by the Company's Portfolio Borrowers who have generally demonstrated an ability to find profitable projects in various economic environments. We believe this is one of the reasons why the Company's profitability and investor returns have remained stable through depreciating, flat and appreciating real estate markets since 2009.

***The Company generally makes short term loans of 12 months or less that enable both the Company and its Portfolio Borrowers to adapt quickly to changing economic conditions.*** For example, if real estate prices soften and resale activity slows down, some of our Portfolio Borrowers may break even or lose money on current Projects because their estimated resale prices may prove to have been too optimistic. However, because these are short-term Projects with defined exit strategies, our Portfolio Borrowers are often able to adapt quickly by buying the next Project at a lower price to account for changing market conditions.

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***Changes in interest rates do not require the Company to reprice its Portfolio Loans, minimizing interest rate risk.*** Changes in interest rates do not require the Company to reprice its Portfolio Loans, minimizing interest rate risk. The Company has the intent and ability to hold its Portfolio Loans to maturity, except for loans originated by IBMF 2, LLC, the Company's Taxable REIT Subsidiary, which originates mortgage loans with the intent to sell them to unaffiliated third-party buyers. Accordingly, IBMF Portfolio Loans are stated at their outstanding unpaid principal balance with interest thereon accrued as earned. IBMF 2 loans are classified as held-for-sale until sold and carried at the lower of cost or fair value. However, changes in interest rates can create reinvestment risk related to changes in the rate of return available on new Portfolio Loans made by the Company.

***The Company's Portfolio Borrowers are more price setters than price takers.*** Because our Portfolio Borrowers' Projects are short-term, and their profits come primarily from the value-added improvements made to the Project, we believe our Portfolio Borrowers are more sensitive to completing and selling their Projects quickly than they are to the current trend in real estate prices. For example, between 2009 and 2012, when real estate prices were in decline, many of the Company's Portfolio Borrowers were buying properties from foreclosure auctions at very low prices, rehabbing the houses, and then listing the houses for sale at prices that were often lower than competing listings, resulting in quick sales.

***The Company's loan portfolio is primarily secured by residential real estate, which we believe to be a more defensive asset class relative to assets correlated to other sectors of the economy.*** Real estate is a well-known inflation hedge, but what's more important is that, in our view, the Federal Reserve and other policymakers are likely to prioritize the health of the residential real estate market over other sectors of the U.S. economy. The simple reason is that consumption is approximately 70% of U.S. gross domestic product and housing is the largest single investment for most consumers. Accordingly, we believe that it is unlikely that policymakers will allow the residential real estate market to suffer for an extended period without taking action. The same cannot be said for other sectors of the economy. For example, the oil and gas industry experienced a major decline in energy prices during 2014 and 2015 that led to significant capital spending reductions and industry layoffs. However, from an economic perspective the benefits of lower energy prices transmitted through increased consumer spending generally appeared to offset the negative effects of oil industry contraction on the overall economy.

***The Company's business model generates strong and stable monthly recurring revenues, which means the Company is well positioned to cover interest payments.*** For the 12 months ended December 31, 2025 the Company generated $16,361,281 in total income available to pay interest expense and equity Preferred Returns. With average portfolio leverage of 46.8%, the Company paid interest expense of $4,448,230 related to Bank Borrowings. The Company paid Preferred Returns of $575,927 related to Class D Units, $1,672,438 related to Class C Units and $2,043,332 related to Class B Units. Total income was 3.7 times the amount necessary to pay interest expense related to Bank Borrowings; 3.3 times the amount necessary to pay the interest expense and Preferred Returns related to Bank Borrowings and Class D Units combined; 2.4 times the amount necessary to pay the interest expense and Preferred Returns related to Bank Borrowings, Class D Units and Class C Units combined, and; 1.9 times the amount necessary to pay the interest expense or Preferred Returns related to Bank Borrowings, Class D Units, Class C Units and Class B Units combined.

In these calculations, the Preferred Return payable to Class D Unitholders is combined with the interest payable on Bank Borrowings because Bank Borrowings have a senior security interest to Class D Unitholders. Similarly, the Preferred Return payable to Class C Unitholders is combined with Preferred Return payable to D Unitholders and interest payable on Bank Borrowings because Class D Unitholders and Bank Borrowings have a senior interest to Class C Unitholders, and the Preferred Return payable to Class B Unitholders is combined with Preferred Return payable to Class C and Class D Unitholders and interest payable on Bank Borrowings because Class C and Class D Unitholders and Bank Borrowings have a senior interest to Class B Unitholders. We believe that this level of coverage provides Unitholders in each of Class B, Class C and Class D a significant layer of protection that should help safeguard investor capital during an adverse economic event. See "*Analysis of Interest and Preferred Return Coverage*" on Page 22 for additional details.

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***Investor capital is further protected by the value of the real estate collateral.*** Cumulative loan-to-value is the value of the equity investment plus any senior debt or equity divided by the estimated "as-is" real estate collateral value ($179.2 million as of December 31, 2025). As of December 31, 2025:

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| ·  | The loan-to-value of Bank Borrowings equaled 34% or $60.8 million in Bank Borrowings divided by the estimated "as-is" real estate collateral value of $179.2 million;  |
| ·  | Cumulative loan-to-value of Class D Units equaled 40% or $72.0 million (the sum of $11.2 million in Class D Units, plus $60.8 million in Bank Borrowings) divided by the estimated "as-is" real estate collateral value of $179.2 million;  |
| ·  | Cumulative loan-to-value of Class C Units equaled 56% or $101.2 million (the sum of $29.2 million in Class C Units, plus $11.2 million in Class D Units, plus $60.8 million in Bank Borrowings) divided by the estimated "as-is" real estate collateral value of $179.2 million;  |
| ·  | Cumulative loan-to-value of Class B Units equaled 69% or $124.1 million (the sum of $22.9 million in Class B Units, plus $29.2 million in Class C Units, plus $11.2 million in Class D Units, plus $60.8 million in Bank Borrowings) divided by the estimated "as-is" real estate collateral value of $179.2 million; and |
| ·  | Cumulative loan-to-value of Class A Units equaled 73% or $131.7 million (the sum of $7.6 million in Class A Units, plus $22.9 million in Class B Units, plus $29.2 million in Class C Units, plus $11.2 million in Class D Units, plus $60.8 million in Bank Borrowings) divided by the estimated "as-is" real estate collateral value of $179.2 million. |
| Cumulative Asset Coverage is the estimated "as-is" real estate collateral value ($179.2 million as of December 31, 2025) divided by the equity and any senior debt or equity. As of December 31, 2025: | Cumulative Asset Coverage is the estimated "as-is" real estate collateral value ($179.2 million as of December 31, 2025) divided by the equity and any senior debt or equity. As of December 31, 2025: |
| ·  | Bank Borrowings equaled 2.95 times or $179.2 million in estimated "as-is" real estate collateral value divided by $60.8 million in Bank Borrowings;  |
| ·  | Class D Units equaled 2.49 times or $179.2 million in estimated "as-is" real estate collateral value divided by $72.0 million (the sum of $11.2 million in Class D Units, plus $60.8 million in Bank Borrowings);  |
| ·  | Class C Units equaled 1.77 times or $179.2 million in estimated "as-is" real estate collateral value divided by $101.2 million (the sum of $29.2 million in Class C Units, plus $11.2 million in Class D Units, plus $60.8 million in Bank Borrowings);  |
| ·  | Class B Units equaled 1.44 times or $179.2 million in estimated "as-is" real estate collateral value divided by $124.1 million (the sum of $22.9 million in Class B Units, plus $29.2 million in Class C Units, plus $11.2 million in Class D Units, plus $60.8 million in Bank Borrowings); and  |
| ·  | Class A Units equaled 1.36 times or $179.2 million in estimated "as-is" real estate collateral value divided by $131.7 million (the sum of $7.6 million in Class A Units, plus $22.9 million in Class B Units, plus $29.2 million in Class C Units, plus $11.2 million in Class D Units, plus $60.8 million in Bank Borrowings). See "'*As-Is' Loan-to-Value and Asset Coverage Based on Percentage Completion*" on Page 43 for additional information regarding loan-to-value analysis and the method of estimating "as-is" value. |

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**Portfolio Loan Characteristics** 

***Project Type*.** The primary focus of the Company's lending activities is on single-family residential rehab and new construction projects. As described above, the Company believes that this market is underserved by banks and other institutional lenders. In addition, the relatively short-term nature of these projects (12 months or less) allows the Company and its Portfolio Borrowers to adjust quickly to changing market conditions.

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The following table provides information about the distribution of the Company's loan portfolio by project type segmented further by number of loans and the unpaid principal balance ("*UPB*") of those loans.

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|  | **As of the Year Ended** <br> **December 31,**  | **As of the Year Ended** <br> **December 31,**  |
|  | **2025** | **2024** |
| **Number of loans** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Single-family residential rehab | 263 | 234 |
| &nbsp;&nbsp;&nbsp;&nbsp; Single-family residential new construction | 4 | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp; Multi-family residential rehab | 0 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp; Multi-family residential new construction | 1 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp; Commercial | 0 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp; Land entitlements | 1 | 0 |
| **Percentage of UPB** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Single-family residential rehab | 98% | 93% |
| &nbsp;&nbsp;&nbsp;&nbsp; Single-family residential new construction | 1% | 7% |
| &nbsp;&nbsp;&nbsp;&nbsp; Multi-family residential rehab | 0% | 0% |
| &nbsp;&nbsp;&nbsp;&nbsp; Multi-family residential new construction | 1% | 0% |
| &nbsp;&nbsp;&nbsp;&nbsp; Commercial | 0% | 0% |
| &nbsp;&nbsp;&nbsp;&nbsp; Land entitlements | <1% | 0% |

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During the residential real estate downturn from 2009 through 2012, the Company only made residential rehab loans on existing single family properties. From 2013 through 2015, the Company modestly increased the amount of loans it made for single-family and multi-family new construction. This trend reflected the general improvement in the real estate market over that time and a corresponding shift in the business models of our borrowers from fixing distressed properties purchased through foreclosure sales or from bank owned inventory to more value-added projects, such as square footage additions or new construction. During 2015, 2016 and 2017, the Company's single-family and multi-family new-construction loans, in aggregate, remained consistent at less than 25% of loan portfolio UPB. From 2018 through 2025, the Company made fewer new construction loans in favor of more residential rehab loans. At December 31, 2025, Company's single-family new-construction and multi-family new-construction loans, in aggregate, were equal to 1% of UPB. The Company believes that the real estate securing residential rehab loans is generally more secure compared to the real estate securing new construction loans because, on average, the amount of construction funds required to complete rehab projects is less, the time to complete a rehab project is shorter, and rehab projects usually come with an existing certificate of occupancy allowing the owner to more easily rent the property in an adverse economic environment.

It is important to point out that the Company does not make loans for land entitlement purposes only. Any land entitlement loans represent phase one of two phase projects that require land entitlement to be completed prior to new construction commencing on either single-family or multi-family residential structures.

***Geographical Distribution***. The Company continues to experience steady loan demand and stable real estate resale activity. However, the real estate markets it serves can be affected by both regional economics and macro-economic cycles. For this reason, the Company believes that increasing its geographic diversification and having the ability to rebalance its loan portfolio between geographies is important to effectively manage risk.

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The following table provides the geographic distribution of the Company's loan portfolio by state segmented further by the number and UPB of loans that were active at the end of the period and those loans that paid off during the period.

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|  | **As of the Year Ended**<br> **December 31,** | **As of the Year Ended**<br> **December 31,** |
|  | **2025** | **2024** |
| **Arizona** |  |  |
| Number of active loans, end of period | 2 | 4 |
| Percentage of total UPB | 1% | 1% |
| **California** |  |  |
| Number of active loans, end of period | 157 | 143 |
| Percentage of total UPB | 67% | 72% |
| **Colorado** |  |  |
| Number of active loans, end of period | 9 | 9 |
| Percentage of total UPB | 4% | 7% |
| **D.C. – Washington** |  |  |
| Number of active loans, end of period | 1 | 0 |
| Percentage of total UPB | <1% | 0% |
| **Florida** |  |  |
| Number of active loans, end of period | 0 | 10 |
| Percentage of total UPB | 0% | 3% |
| **Georgia** |  |  |
| Number of active loans, end of period | 0 | 2 |
| Percentage of total UPB | 0% | <1% |
| **Maryland** |  |  |
| Number of active loans, end of period | 0 | 2 |
| Percentage of total UPB | 0% | <1% |
| **Missouri** |  |  |
| Number of active loans, end of period | 1 | 1 |
| Percentage of total UPB | <1% | <1% |
| **North Carolina** |  |  |
| Number of active loans, end of period | 15 | 16 |
| Percentage of total UPB | 2% | 2% |
| **Oregon** |  |  |
| Number of active loans, end of period | 32 | 20 |
| Percentage of total UPB | 9% | 6% |
| **South Carolina** |  |  |
| Number of active loans, end of period | 1 | 0 |
| Percentage of total UPB | <1% | 0% |
| **Texas** |  |  |
| Number of active loans, end of period | 17 | 18 |
| Percentage of total UPB | 2% | 4% |
| **Utah** |  |  |
| Number of active loans, end of period | 20 | 10 |
| Percentage of total UPB | 4% | 3% |
| **Virginia** |  |  |
| Number of active loans, end of period | 5 | 2 |
| Percentage of total UPB | 1% | <1% |
| **Washington** |  |  |
| Number of active loans, end of period | 9 | 7 |
| Percentage of total UPB | 2% | 3% |

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During 2016, the Company maintained stable lending activity across its existing geographies and began lending in Florida, Massachusetts, New Jersey, North Carolina, Oklahoma and South Carolina. During 2017, the Company began lending in Georgia, Tennessee and Virginia. During 2018, the Company began lending in Louisiana and increased its portfolio concentration toward non-judicial foreclosure states. During 2019 and 2020, the Company began lending in the District of Columbia, New Mexico and Utah and further increased its portfolio concentration toward non-judicial foreclosure states. The Company believes that lending in non-judicial foreclosure states is less risky, generally, than lending in judicial foreclosure states because the amount of time and expense required to foreclose non-performing loans is less. As of December 31, 2025 and 2024, the percentage of loan portfolio UPB secured by property located in non-judicial states was 100% and 95.9%, respectively.

The Company believes that the benefits of geographic diversity outweigh the risks associated with managing a wide geographic distribution of borrowers and real estate collateral. Specifically, the Company evaluates and adjusts its loan program offerings to borrowers in those states that offer better investment returns per unit of risk. Some of the variables evaluated by the Company in making the decision to expand or contract in a specific geographic market include the competitive pricing pressure from competing lenders, availability of borrower projects, the margins on those borrower projects and trends in regional economic activity.

***Borrowers***. As an asset-based lender, the Company's underwriting guidelines are heavily weighted toward real estate valuation, liquidity and loan-to-value coverage. We primarily rely on the assessment of the real estate collateral securing the loan as opposed to the credit quality of our Portfolio Borrowers, as the Company believes that the collateral—and at times cross-collateral—securing the Portfolio Loan is the primary source of repayment protection. However, our underwriting guidelines also consider aspects of the Portfolio Borrowers when assessing whether to extend a Portfolio Loan.

The Company's Portfolio Borrowers are often comprised of one to three member teams that form a company and take title to Projects in their company name. When assessing potential Portfolio Borrowers, the Company looks at a combination of the credit score for each team member, the experience of each team member, as well as the experience of the team as a whole, and the team members and company's available liquidity. The Manager will consider the strength of each of these components, and then determine holistically whether the borrower is of high enough quality to become a Portfolio Borrower. For each Portfolio Borrower, the Company performs a criminal background check, orders a credit report, measures liquidity, interviews the borrower to assess experience level and evaluates the quality of previous work. No one factor will be determinative. This assessment is conducted at the inception of the first loan and periodically thereafter.

***Credit Score***. The Company will usually consider a credit score above 700 for individual team members, or the borrowing entity, positively.

***Experience***. The team members usually have prior experience in real estate development, construction, finance or sales. For example, a common three-person team might include a real estate agent, general contractor and financier, each contributing their expertise to the team. The real estate agent might be tasked with identifying attractive Projects, making suggestions regarding what capital improvements should be made to the Projects and helping to market and sell the Projects. The contractor might be tasked with assessing the cost, complexity and time necessary to make the planned capital improvements to the Project and managing that construction process. The financier might be tasked with managing the lender relationships, equity investor relationships in the Project, if any, and handling all back office accounting. The Company primarily lends to borrowers who, between all the members of the team, have successfully completed two projects similar to the Project subject to the Project Loan in the last two years.

***Liquidity***. The Company will request information about the cash held by the borrowing company, and compare that to the amount of cash the Company believes is necessary to complete the Project, without considering the funds made available through the Portfolio Loan. There is no specific formula the Manager uses in making this assessment, but the Manager instead relies on its extensive experience in assessing Project needs with respect to borrowing parties.

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Between 2009 and 2015, the Company did not pursue a formal marketing or advertising program to grow its base of Portfolio Borrowers. The growth in the number of Portfolio Borrowers came almost exclusively through word of mouth. However, beginning in 2016, the Company implemented a marketing and advertising plan, which has helped the Company identify qualified Portfolio Borrowers and advantageous lending opportunities in each geographic market.

It has been our experience that providing Portfolio Borrowers with exceptional service leads to business referrals, which we believe is the best form of marketing. In addition, because our Portfolio Borrowers are often repeat customers, the value of each Portfolio Borrower relationship is much higher than it would be if the Portfolio Borrowers were not repeat customers.

The following table provides information regarding borrower concentrations as of the dates indicated:

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| | | |
|:---|:---|:---|
|  | **As of the Year Ended** <br> **December 31,**  | **As of the Year Ended** <br> **December 31,**  |
|  | **2025**  | **2024** |
| Portfolio Loans | 269 | 244 |
| Portfolio Borrowers | 161 | 128 |
| Average number of loans per borrower | 1.7 | 1.9 |
| Top borrower (percentage of UPB) | 9.9% | 8.2% |
| Top 3 borrowers (percentage of UPB) | 16.5% | 17.3% |

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***Loan Term***. All of the Company's loans are made with maturity dates of 12 months or less. However, it is the Company's policy to provide borrowers, whose loans are not in default, with six-month loan extensions, as needed, to allow more time to finish projects. We believe the relatively short-term nature of these projects allows the Company and its Portfolio Borrowers to adjust quickly to changing market conditions.

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The following table sets forth the distribution of loans by age at the dates indicated:

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|:---|:---|:---|
|  | **As of the Year Ended** <br> **December 31,** | **As of the Year Ended** <br> **December 31,** |
|  | **2025** | **2024** |
| **Number of loans** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 00-06 months | 168 | 150 |
| &nbsp;&nbsp;&nbsp;&nbsp; 06-09 months | 40 | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp; 09-12 months | 20 | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp; 12+ months | 41 | 44 |
| **Percentage of unpaid principal balance**  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 00-06 months | 62% | 62% |
| &nbsp;&nbsp;&nbsp;&nbsp; 06-09 months | 15% | 12% |
| &nbsp;&nbsp;&nbsp;&nbsp; 09-12 months | 7% | 9% |
| &nbsp;&nbsp;&nbsp;&nbsp; 12+ months | 15% | 17% |

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The loans over twelve months primarily represented larger project sizes that were expected to take longer to complete.

***Loan Turnover***. The following table provides information associated with the Company's Portfolio Loan turnover for the periods shown:

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| | | |
|:---|:---|:---|
|  | **As of or for the Year**<br> **Ended December 31,** | **As of or for the Year**<br> **Ended December 31,** |
|  | **2025** | **2024** |
| Loans originated, during period | 433 | 416 |
| Loans paid off, during period | 408 | 464 |
| Loans foreclosed, during period | 0 | 3 |
| Portfolio Loans, end of period  | 269 | 244 |
| Total historical payoffs, end of period  | 5382 | 4974 |
| Total historical originations, end of period  | 5651 | 5218 |

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Total loan origination and associated Portfolio Loan turnover increased gradually each year from 2013 through 2017 as the Company worked to balance a steady increase in capital formation with quality loan origination. During 2018, the number of loans originated decreased as the Company shifted its origination toward states with larger loan sizes. During 2019 through 2022, the number of loans originated increased as the Company grew its loan portfolio to balance with the issuance of additional Senior Notes (converted to Class D Units in 2022). During 2022, the number of loans originated decreased modestly as the Company slowed its lending activity during the fourth quarter of 2022. During the first quarter of 2023, the number of loans originated was low due to concerns around the health of the residential real estate market, following significant interest rate increases the prior year, but increased throughout the remainder of 2023, 2024 and 2025 as perceptions regarding the health of the residential real estate market improved.

***Loan Size***. The following table sets forth the distribution of loans by size (based on the unpaid principal balance) at the dates indicated:

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| | | |
|:---|:---|:---|
|  | **As of the Year Ended** <br> **December 31,** | **As of the Year Ended** <br> **December 31,** |
|  | **2025** | **2024** |
| Portfolio unpaid principal balance | $131700026 | $126111912 |
| Average loan size | 489591 | 516852 |
| Median loan size | 352900 | 352521 |
| $0-$100000 | 9 | 11 |
| $100001-$200000 | 37 | 42 |
| $200001-$300000 | 61 | 45 |
| $300001-$500000 | 79 | 62 |
| $500001-$1000000 | 53 | 48 |
| $1000001-$1500000 | 23 | 27 |
| $1500001-$2000000 | 7 | 7 |
| $2000001-$2500000 | 0 | 2 |
| $2500001-$3000000 | 0 | 0 |

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The Company saw a modest increase in average and median loan sizes from 2017 through 2025, reflecting the Company's shift toward west coast states, which have relatively higher priced real estate on average, and the appreciation of the real estate market.

The Company's objective is to make loans secured by real estate priced in the liquid segments of each geographic market. Therefore, the distribution of loan sizes between time periods largely reflects both changes in real estate prices over time and a mix shift between geographies. While the Company is sensitive to loan size diversification, it does not target a mix of loan sizes.

**Portfolio Loan Criteria and Policies** 

***Underwriting***. The Company engages in the business of making loans secured by first lien deeds of trust or mortgages that encumber real estate located in the United States, its territories and possessions. The Company may also invest indirectly in a loan by acquiring an ownership interest in an entity formed for the sole purpose of holding a qualifying loan. The Company's loans are not insured or guaranteed by any governmental agency or private entity.

For each Portfolio Borrower, the Company performs a criminal background check, orders a credit report, measures liquidity, interviews the borrower to assess experience level and evaluates the quality of previous work. The Company also requires each Portfolio Borrower to provide a construction cost budget, detailing the cost and scope of planned capital improvements, and a profit analysis, detailing the borrower's estimated resale price, total project cost and estimated profit.

As an asset-based lender, the Company's underwriting guidelines are heavily weighted toward real estate valuation, liquidity and loan-to-value (LTV) coverage. Specifically, the Company operates under the following underwriting guidelines:

• the Company does not lend unless secured by a first lien deed of trust or mortgage;

• the Company does not lend unless the borrower has a clearly defined exit strategy;

• the Company does not lend without assessing the borrower's ability and willingness to pay; and

• the Company does not lend more than 70% of the estimated "after-repair value" of the collateral (70% LTV coverage).

The Company has the sole discretion whether to originate a mortgage loan at a given LTV. Some of the factors considered by the Company when determining the maximum LTV to be extended on a mortgage loan are:

• age, type, condition, and location of the collateral;

• borrower creditworthiness and credit history;

• loan amount and credit terms requested;

• additional cross-collateralized properties;

• proposed changes to or reconstruction of the collateral;

• tenant history and occupancy rate (if applicable); and

• amount of the interest reserve or construction loan (if any).

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In determining the value of real estate collateral for purposes of loan underwriting and LTV calculations, the Company inspects the properties and evaluates comparable property values in the area through the use of Multiple Listing Service (MLS) data. Based on this information, the Company prepares an estimate of the "after-repair value" of each property. The Company's "after-repair" value estimates assume that all planned capital improvements to the real estate collateral have been completed and that the Company has disbursed all construction loan proceeds, and represents the Company's estimate of the market value of the collateral after completion of the Project based on information about comparable properties available at that time. In more complex transactions or for properties with limited comparable data, the Company may seek a formal valuation report such as an appraisal or broker price opinion. Appraisals are recognized in the mortgage banking industry to represent estimates of value, and should not be relied upon as the only measure of true worth or realizable value. Collateral value is determined solely in the judgment of the Company.

The Company believes that performing in-house real estate valuations provides it with a competitive advantage. By performing hundreds of in-house valuations per year in multiple geographies, the Company is able to continually refine its appraisal process and analyze real estate market trends within different geographies. This internal valuation analysis enables the Company to make faster and more informed lending decisions, which we believe help mitigate risk while providing Portfolio Borrowers with a higher quality of service.

There are no limitations on the types or locations of real estate investment loans within the United States or any requirement for current yield as opposed to overall return. Moreover, the Company's investment strategy does not seek to balance the investment portfolio by property types, return characteristics or location, but the Company is sensitive to concentration risk. The Manager has the discretion to lend the Company's assets on both new construction and existing properties.

The Company will not enter into any new commitment to make a loan where the cumulative principal amount of such loan would exceed 10% of the principal value of Portfolio Loans plus cash and cash equivalents of the Company as of the date of such commitment.

The Manager has discretion to amend the Portfolio Loan criteria and policies from time to time. Therefore, in essence, the investment objectives are those defined by the Manager from time to time.

**Disbursement of Loan Proceeds** 

Company loans are funded through an escrow account handled by the Manager or a qualified attorney, title insurance company or escrow company. The escrow agent is instructed not to disburse any funds until the following conditions are met:

• Satisfactory title insurance coverage has been obtained, except as described in the following paragraph, with the title insurance policy naming the Company as the insured and providing title insurance in an amount equal to the principal amount of the loan. Title insurance insures only the validity and priority of the Company's deed of trust or mortgage, and does not insure the Company against loss by reason of other causes, such as diminution in the value of the property securing the loan, over-appraisals or borrower defaults. The Company does not intend to arrange for mortgage insurance, which would afford some protection against loss if the Company foreclosed on a loan and there was insufficient equity in the property securing the loan to repay all sums owed.

• The Company does not intend to arrange for title insurance policies on properties purchased from county auction, in which the borrower is borrowing from the Company under a Master Loan and Security Agreement. In such cases, the Company lends to the borrower during a period in which the borrower has equitable (but not marketable) title, and the Company performs its own title research. Once the Trustee's Deed or Sherriff's Deed is received and recorded following the foreclosure sale, the Company's first lien position is perfected. The Master Loan and Security Agreement cross-collateralizes the loan against other properties owned by the borrower.

• Satisfactory hazard and liability insurance has been obtained for all loans, or only liability insurance in the event of a loan secured by unimproved land, which insurance shall name the Company as loss payee in an amount equal to the principal amount of the Company's loan or the replacement value of the property, as dictated by legal statute.

• All loan documents (notes, deeds of trust, etc.) and insurance policies name the Company as payee and beneficiary or additional loss insured, as applicable. In the event the Company purchases loans, the Company shall receive assignments of all beneficial interest in any document related to each loan so purchased. Company investments in loans may not be held in the name of the Manager or any other nominee.

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**Disbursement of Construction Draws** 

The Company disburses construction draws to Portfolio Borrowers to pay for planned capital improvements to the real estate collateral based on a pre-defined scope of work, construction budget and time schedule. To mitigate risk in this process, the Company follows certain policies and procedures that incorporate some or all of the following practices. However, it is important to point out that the Company evaluates the risks related to each Project, considering such variables as borrower experience, and Project location, size, timing and scope of work to determine the right combination of practices to follow.

Practices related to disbursement of construction draws include, but are not limited to, the following:

• *Construction Cost Budget* – The construction cost budget is a spread sheet provided by the borrower that provides the Company with line item detail related to the planned capital improvements. The construction cost budget is prepared during the underwriting processes, and the borrower will update and submit the construction cost budget with each draw request.

• *Summary Page* – The summary page organizes the draw request into two categories: (1) reimbursable expenses to be paid by the Company to the borrower, and (2) direct payments by the Company to contractors and vendors. The Company will reimburse the borrower for completed work as long as the borrower provides proof of payment. The Company will pay contractors and vendor invoices directly for completed work.

• *Conditional Lien Waivers* – Conditional lien waivers are legal agreements provided by contractors and material vendors to the Company or the borrower. The contractor or vendor agrees to waive its right to file a mechanics lien against the property for work performed through a specific date conditioned upon the receipt of a specific payment amount.

• *Final Lien Waivers* – Final lien waivers are legal agreements provided by contractors and material vendors to the Company or the borrower. The contractor or vendor agrees to waive its right to file a mechanics lien against the property for all work performed on the property, conditioned upon the receipt of a final payment amount.

• *Property Inspections* – The Company orders property inspections by qualified third party inspectors to evaluate the amount and quality of construction work performed at various stages of construction or redevelopment.

• *Advanced Funding* – In certain circumstances, the Company may agree to advance a borrower funds to be used to make future capital improvements. In those cases, the Company requires that, among other things, the borrower provide proof of payment and that the work be 100% complete prior to a subsequent advance. In addition, the Company is often secured through cross-collateralization with other Projects owned by the same borrower.

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**Loan Servicing** 

The Company's loans are serviced by the Manager and the Manager is compensated for such loan servicing activities. See "*Management Fees*" on Page 38 of this Form 1-K.

We believe that the quality of service provided by the Company to Portfolio Borrowers is an important competitive differentiator in the private lending industry. For this reason, the Company chooses to originate, underwrite and service all of its loans in-house. In-house loan underwriting enables the Company to make fast, common sense lending decisions, which Portfolio Borrowers appreciate. For example, new borrower applications generally can be processed in 48 hours, loan proposals generally can be made in 24 hours and existing Portfolio Borrowers can receive funding in two to five days. In addition, because the Company does not require third party approvals to make loans, Portfolio Borrowers have confidence in the funding commitments made by the Company.

We also believe that in-house loan servicing is important for mitigating loan portfolio risk. Maintaining a close relationship with Portfolio Borrowers and servicing Portfolio Loans through every step of the loan life cycle allows the Company to quickly identify and address problem loans.

Loan servicing includes, but is not limited to, the following:

• *Payment Reminder Statements* – Calculating, generating and delivering payment reminders to Portfolio Borrowers on a monthly basis. The accrued interest calculations are performed on a daily basis and take into account intra-month adjustments to the unpaid principal balance related to construction draw advances and adjustments to the interest rate of the loans, if any.

• *Loan History Statements* – Calculating, generating and delivering loan history statements to Portfolio Borrowers on a monthly basis. The loan history statements are updated on a daily basis and present a summary of all financial transaction activity related to the loan, including transaction dates, funding amounts, accrued interest amounts, payment amounts, loan advances, loan fees and payoff amounts.

• *Construction Loan Statements* – Calculating, generating and delivering construction loan history statements to Portfolio Borrowers on a monthly basis. The construction loan history statements are updated on a daily basis and present all construction loan advances, including transaction dates, advance amounts, vendors paid and balance of construction loan remaining.

• *Interest Reserve Statements* – Calculating, generating and delivering interest reserve history statements to Portfolio Borrowers on a monthly basis. The interest reserve statements are updated on a daily basis and present all interest reserve advances, if any, made to cover loan payments, including transaction dates, advance amounts and balance remaining.

• *Payment Collection* – Portfolio Borrowers make loan payments monthly in arrears and are instructed to mail their checks or money orders directly to the Manager for deposit into the Company's general account. Portfolio Borrowers may also elect to have their payments electronically debited from their bank accounts by the Company.

• *Construction Draw Processing* – Accepting, evaluating and managing construction loan draw requests submitted by Portfolio Borrowers. Construction draw processing includes educating borrowers about the draw process, collecting required documentation, managing third-party property inspectors, evaluating the quality of work and percentage of completion against the balance of the construction loan, and disbursing funds to Portfolio Borrowers or contractors.

• *Loan Payoffs* – Calculating, preparing and submitting loan payoff statements. The Company works directly with the escrow company or attorney handling the closing. Following a loan payoff and payoff reconciliation, the Company prepares a reconveyance form in order to release its security interest in the property.

• *Delinquent Loans and Foreclosure* – The Company follows internal policies and procedures related to collecting payment on delinquent loans, offering and negotiating pre-foreclosure remedies and filing foreclosure. All foreclosure proceedings are handled by third-party foreclosure trustees or attorneys, as required by each state.

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**Loan Performance** 

We measure our performance through various metrics, including our net income, net margin, net interest rate spread, net interest margin, ratio of interest-earning assets to interest-bearing liabilities, non-performing loans to total loans, late fee and default interest from non-performing loans, charge-offs on non-performing loans, estimated active portfolio loan-to-value compared to actual paid-off portfolio loan-to-sale price, and interest coverage ratios.

The following selected ratios regarding the performance of our loans for the fiscal years ended December 31, 2025 and 2024. Historical performance is not necessarily an indicator of future performance, and we cannot guaranty that these ratios will be maintained into the future.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of and for the Year Ended**<br> **December 31,**  | **As of and for the Year Ended**<br> **December 31,**  | **As of and for the Year Ended**<br> **December 31,**  |  |
|  | **2025** |  | **2024** |  |
| **Selected performance ratios** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net interest rate spread | 5.074 | % | 3.832 | % |
| &nbsp;&nbsp;&nbsp;&nbsp; Net interest margin | 8.958 | % | 8.313 | % |
| &nbsp;&nbsp;&nbsp;&nbsp; Ratio of interest-earning assets to interest-bearing liabilities | 2.14 |  | 2.31 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Non-performing loans to total loans (percentage of UPB) | 0.9 | % | 0.8 | % |
| &nbsp;&nbsp;&nbsp;&nbsp; Loan to value - active loans, end of period |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Unpaid principal balance | $131700026 |  | $126111912 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Undisbursed construction loan balance <sup>(1)</sup> | $10218785 |  | $6134391 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Estimated "after-repair" value <sup>(2)</sup> | $221177000 |  | $207339000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Estimated "after-repair" loan-to-value <sup>(3)</sup> | 65 | % | 64 | % |
| &nbsp;&nbsp;&nbsp;&nbsp; Loan to value - paid off loans, during period |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Principal balance | $171148402 |  | $161728536 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Actual sale price | $268303954 |  | $267246698 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Actual loan-to-sale price <sup>(4)</sup> | 64 | % | 61 | % |
| &nbsp;&nbsp;&nbsp;&nbsp; Original "after-repair" loan-to-value estimate | 66 | % | 65 | % |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest coverage ratios |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest coverage - Bank Borrowings <sup>(5)</sup> | 3.7 | x | 3.5 | x |
| &nbsp;&nbsp;&nbsp;&nbsp; Cumulative preferred coverage – Class D Units (including Senior Notes) <sup>(6)</sup> | 3.3 | x | 2.9 | x |
| &nbsp;&nbsp;&nbsp;&nbsp; Cumulative preferred coverage – Class C Units <sup>(7)</sup> | 2.4 | x | 2.2 | x |
| &nbsp;&nbsp;&nbsp;&nbsp; Cumulative preferred coverage – Class B Units <sup>(8)</sup> | 1.9 | x | 1.7 | x |
| &nbsp;&nbsp;&nbsp;&nbsp; Average portfolio leverage, during period | 46.8 | % | 43.3 | % |

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(1) Unfunded loan balance is comprised of construction funds that have been approved but not yet disbursed.

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(2) The Company prepares an estimate of the "after-repair" value of the collateral for each Portfolio Loan. The Company's "after-repair" value estimate for each property assumes that all planned capital improvements to the real estate collateral have been completed and that the Company has disbursed all construction loan proceeds, and represents the Company's estimate of the market value of the Project after completion of all repairs based on information about comparable properties available at the time. See "Portfolio Loan Criteria and Policies – Underwriting" on Page 10 for additional details regarding estimation of "after-repair" value.

(3) Estimated "after-repair" loan-to-value is calculated by dividing the sum of the unpaid principal balance and the unfunded loan balance by the estimated "after-repair" value. Real estate values are based on the Company's "after-repair" value estimates and loans are weighted by the principal balance of each loan.

(4) Actual loan-to-sale price represents the amount of the fully funded loan divided by the actual sale price of the real estate collateral. The principal balance of each loan was used to calculate the weighted average. Loans that were refinanced or secured by real estate collateral that was sold wholesale (prior to planned improvements being completed) to other investors were excluded from the calculation.

(5) Bank Borrowings have a first priority security interest in all of the Company's assets, including Portfolio Loans. Interest coverage equals gross income divided by the interest expense related to Bank Borrowings.

(6) Class D Units have the highest preference among the Company's outstanding equity classes in the event the Company were to liquidate all of the Company's assets, including Portfolio Loans. Cumulative Preferred Return coverage of Class D Units equal total income divided by the total Preferred Return paid to Class D Units, plus interest paid on Bank Borrowings. Effective January 1, 2023, the Company's five percent Senior Notes were prepaid or reinvested into five percent preferred return, participating, Class D Units.

(7) Class C Units have the next highest preference after the Class D Units among the Company's outstanding equity classes in the event the Company were to liquidate all of the Company's assets, including Portfolio Loans. Cumulative Preferred Return coverage of Class C Units equal total income divided by the total Preferred Return due Class C Units and Class D Units, plus interest expense related to Bank Borrowings combined.

(8) Class B Units have the next highest preference after the Class C Units among the Company's outstanding equity classes in the event the Company were to liquidate all of the Company's assets, including Portfolio Loans. Cumulative Preferred Return coverage of Class B Units equal total income divided by the total Preferred Return due Class B Units, Class C Units and Class D Units, plus interest expense related to Senior Notes and Bank Borrowings combined. Effective February 1, 2021, the Company's 10% Preferred Return, participating, equity offering (the "Equity") was exchanged for nine percent preferred, participating, Class B Units of equity.

***Non-Performing Loans and REO Assets***. The following definitions are used when categorizing the Company's Delinquent, Non-Performing, Non-Accruing, Impaired and Real Estate Owned assets:

• *Delinquent Loan*: A loan with a monthly payment that is 30 days or more past due.

• *Non-Performing Loan*: A Delinquent Loan that is in the foreclosure process but still accruing interest.

• *Non-Accruing Loan*: A Delinquent Loan that is in the foreclosure process but no longer accruing interest. The accrual of interest on a loan is discontinued when, in management's judgment, the future collectability of principal or interest is in doubt. Loans placed on nonaccrual status may or may not be contractually past due at the time of such determination.

• *Impaired Loan*: A Delinquent Loan in which the estimated net proceeds from the disposition of the collateral (from auction sale or otherwise) is insufficient to cover the total principal, unpaid accrued interest and foreclosure fees due. Impaired loans are measured based on the present value of expected future cash flows, discounted at the loan's effective interest rate, or the fair market value of the collateral if the loan is collateral dependent. Impaired loans are currently measured at lower of cost or fair value. Impaired loans are charged to the allowance for loan losses when management believes, after considering economic and business conditions, collection efforts and collateral position that collection of principal is not probable.

• *Real Estate Owned*: Real estate that becomes an asset of the Company following a foreclosure sale or through a deed in lieu of foreclosure that is held for sale.

• *Rental Property*: Real estate that the Company holds for use.

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The Company's policy is to categorize a loan as both a Delinquent Loan and Non-Performing Loan and to begin the foreclosure process if the Company has not received payment from the borrower within 30 days of the due date. Industry standard is to categorize a loan as Delinquent for the first 90 days and then to categorize the loan as Non-Performing after 90 days. We believe that our more aggressive policy is appropriate given that our loans have shorter maturities relative to traditional loans. This policy enables the Company to get an earlier start on the foreclosure process should the loan continue to remain delinquent (the time to foreclose on a property can range from 75 to 180 days or longer if the borrower files bankruptcy). However, this more conservative policy does tend to generate more Non-Performing Loans that are ultimately cured.

When a loan becomes Non-Performing and the foreclosure process is initiated, accounting rules require the Company to continue to accrue interest monthly on the Non-Performing Loan, as long as the Manager believes in good faith that the net proceeds from the disposition of the collateral, through foreclosure sale or otherwise, will be sufficient to recover the principal, unpaid accrued interest and foreclosure fees due. In contrast, if the Manager, at any time, believes that the net proceeds from the disposition of the collateral may not be sufficient to recover the principal, unpaid accrued interest and foreclosure fees due, then accounting rules require the Manager to stop accruing interest on the loan. Only this type of loan will be classified as a Non-Accruing Loan. Finally, if for whatever reason, the net proceeds from the disposition of the collateral are estimated to be insufficient to pay the principal, unpaid accrued interest and foreclosure fees due, then the loan will be classified as an Impaired Loan. Accounting rules require that the shortfall related to an Impaired Loan be booked against the Company's allowance for loan losses.

The Company anticipates that its provision-for-loan-losses accrual rate will fluctuate on a monthly basis between 0.0% and 1.0% annualized. These adjustments will increase or decrease distributable income to Equity Program investors, accordingly. However, the provision-for-loan-losses accrual rate and the associated allowance-for-loan-loss balance are subject to adjustments based on the rate of historical charge-offs and the Company's assessment of near-term portfolio performance.

While the Company's objective is to minimize the number of non-performing loans in its loan portfolio, on average non-performing loans and related REO properties have generated additional profits for the Company.

The Company provides further information about Delinquent, Non-Performing, Non-Accruing, Impaired and Real Estate Owned assets in the reports of quarterly financial results it provides to investors and files with the Securities and Exchange Commission.

***Portfolio Roll Forward Analysis***. The Company makes short term loans with maturities of 12 months or less. These Portfolio Loan payoffs provide a primary source of cash flow to the Company. To help analyze the velocity of this cash flow the Company performs a monthly loan portfolio roll forward analysis. This analysis evaluates the number of active loans and the principal balance of those loans at the beginning of each month, and the dollar volume of principal advances made and principal payment received by the Company during each month. With this information the Company is able to analyze historical monthly cash flows related to loan portfolio funding and payoffs, and calculate the number of days required for the loan portfolio to turn over or to pay off in full, assuming the Company stopped making new loans and the historical principal payment velocity remained constant.

The Company provides further information about its portfolio roll forward analysis in the quarterly financial results it provides to investors and files with the Securities and Exchange Commission.

***Cash Utilization***. The Company considers all highly liquid financial instruments with maturities of three months or less at the time of purchase to be cash equivalents. Cash on deposit occasionally exceeds federally insured limits. The Company believes that it mitigates this risk by maintaining deposits with major financial institutions.

Average cash utilization during the year ended December 31, 2025 and 2024 was 99.99% and 99.99%, respectively. The high level of average cash utilization reflects the Company's use of a revolving line of credit provided by Bank Borrowings. The revolving line of credit is an important cash management tool, which allows the Company to fully utilize investor capital while managing the ebbs and flows of Portfolio Loan originations and payoffs. See "*Bank Borrowings*" Page 29 for additional details.

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We generally maintain liquidity to make Portfolio Loans, pay monthly investor distributions and otherwise efficiently manage our long-term investment capital. Because the level of these borrowings can be adjusted on a daily basis, the level of cash and cash equivalents carried on the balance sheet is significantly less important than our potential liquidity available under our Portfolio Loan payoff schedule and revolving line of credit. We currently believe that the Company has sufficient liquidity and capital resources available to make additional Portfolio Loans, repay Bank Borrowings, and make monthly cash distributions to investors.

The Company provides further information about these metrics in the quarterly financial results it provides to investors and files with the Securities and Exchange Commission.

**Leveraging the Portfolio** 

The Company intends to continue to leverage its loan portfolio. The Company anticipates borrowing funds from bank lenders in addition to the offer and sale of additional Units in order to fund additional Portfolio Loans. In addition, under the Third Amended and Restated Operating Agreement, effective February 1, 2021, the Company is required to maintain Class A and Class B Units with unreturned capital contributions of a minimum of 20% of the total assets of the Company (the "*Minimum Equity Covenant*"). See "*Financial Statements*" beginning on Page F-3 for information regarding debt and Bank Borrowings.

As of December 31, 2025 and 2024, the Company was in compliance with the Minimum Equity Covenant.

In the event that we are no longer in compliance with the Minimum Equity Covenant, we may suspend any offering or issuance of the Class C and/or Class D Units pursuant to Regulation A, may limit redemptions of the Class A and Class B Units, or a combination of both. If we suspend the offering of the Class C and/or Class D Units, we will not resume such offering until a new offering statement, or post-qualification amendment to an offering statement with respect to such Class C and Class D Units has been qualified.

**Sources of Income** 

While the Company's revenues come primarily from monthly interest payments on Portfolio Loans, other sources of income include gains from asset sales, discount points, origination fees, late fees and recapture of loan amounts on discounted note purchases.

***Monthly Interest Payments***. The Company's newly originated loans average an interest rate of 8% to 12%. Payments are typically interest-only, due monthly and paid in arrears.

***Short Term Capital Gains or Losses***. The Company may generate a profit or loss when the disposition value of a foreclosed property exceeds or falls short of the principal amount owed plus accrued interest. The disposition value is defined as the liquidation price minus costs specifically incurred due to the foreclosure process (e.g., legal fees, filing fees, reparation expenses).

***Discount Points and Origination Fees***. Discount points are pre-paid interest that Portfolio Borrowers purchase to lower the rate of interest the Portfolio Borrowers pay on subsequent monthly interest payments. These points are typically paid as a percentage of the loan's value. The income generated from discount points range from 0% to 3% of the principal value of the loan. All discount points are paid directly to the Company and are accreted to income over the life of the loan.

***Late Fees or Default Rate***. The Company is entitled but not required to collect late fees if any installment is not received within five days of the due date. The borrower may be charged a late payment fee equal to five percent (5%) of the monthly installment. A similar fee is charged again if late by 10 days and again if late by 15 days. Any dishonored checks are treated as an unpaid installment and are subject to the same late payment penalties plus a $250.00 special handling fee. In the event any installment is past due more than 15 days, the interest rate on the note may be increased to 24% per annum and remain in effect until all defaults have been cured.

***IBMF2/TRS***

During the second quarter of 2025, the Company, through IBMF 2, its wholly owned taxable real estate investment trust subsidiary, began selling whole loans to a third-party institutional investor, supplementing its existing strategy of holding loans on its balance sheet. Whole loans are sold and serviced through IBMF 2, which pays corporate income taxes on its net earnings and distributes the remaining profits to the Company as special dividends. Prior to the second quarter 2025, there was no activity in IBMF 2.

During 2025, IBMF 2 originated and sold whole mortgage loans to an unaffiliated third-party buyer. IBMF 2 recognized $136,920 of mortgage interest income, consisting primarily of deferred origination fees recognized upon loan sale and interest earned during the hold period, and $28,096 of loan servicing income on sold loans. IBMF 2 recorded net income of $73,753 after income tax expense of $24,718, reflecting its status as a Taxable REIT Subsidiary subject to corporate income tax.

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**Analysis of Net Interest Income** 

Net interest income represents the difference between the income we earn on our interest-earning assets, such as Portfolio Loans and bank deposits, and the expense we pay on interest-bearing liabilities, such as private debt, if any, and Bank Borrowings. Net interest income depends on the volume of interest-earning assets and interest-bearing liabilities and the interest rates earned on such assets and paid on such liabilities. This analysis allows the Company to determine its interest rate spread, net interest margin, and ratio of interest-earning assets to interest bearing liabilities.

The Company provides further information about its analysis of net interest income in the quarterly financial results it provides to investors and files with the Securities and Exchange Commission.

**Analysis of Interest and Preferred Return Coverage**

The interest coverage ratio is the ratio of total income to interest expense. The Preferred Return coverage ratios are ratios of total income to Preferred Return expense, plus any senior interest expense or Preferred Return expense. Bank Borrowings have a first priority security interest in all of the Company's assets, including Portfolio Loans. Therefore, interest coverage for Bank Borrowings equals gross income divided by the interest expense related to Bank Borrowings. Class D Units have a second priority interest in all of the Company's assets, including its Portfolio Loans. Therefore, the Preferred Return payable to Class D Unitholders is combined with the interest payable on Bank Borrowings because Bank Borrowings have a senior security interest to Class D Unitholders. Similarly, Class C Units have a third priority interest in all of the Company's assets, therefore, and the Preferred Return payable to Class C Unitholders is combined with Preferred Return payable to D Unitholders and interest payable on Bank Borrowings because Class D Unitholders and Bank Borrowings have a senior interest to Class C Unitholders; and Class B Units have a fourth priority interest in all of the Company's assets, therefore, the Preferred Return payable to Class B Unitholders is combined with Preferred Return payable to Class C and Class D Unitholders and interest payable on Bank Borrowings because Class C and Class D Unitholders and Bank Borrowings have a senior interest to Class B Unitholders. We believe that this level of coverage provides Unitholders in each class a significant layer of protection that should help safeguard investor capital during an adverse economic event.

The Company provides further information about its analysis of interest and Preferred Return coverage in the quarterly financial results it provides to investors and files with the Securities and Exchange Commission.

**Portfolio Loan-to-Value and Asset Coverage**

***Portfolio Loan-to-Value based on "After-Repair" Value*.** The Company is an asset-based lender and its underwriting guidelines are heavily weighted toward real estate valuation, liquidity and loan-to-value coverage. In determining real estate collateral value, the Company inspects the properties and evaluates comparable property values in the area through the use of Multiple Listing Service (MLS) data. Based on this information, the Company prepares an estimate of the "after-repair" value for each property. The Company's "after-repair" value estimates assume that all planned capital improvements to the real estate collateral have been completed and that the Company has disbursed all construction loan proceeds, and represents the Company's estimate of the market value of the collateral after completion of the Project based on information about comparable properties available at that time. In more complex transactions or for properties with limited comparable data, the Company may seek a formal valuation report such as an appraisal or broker price opinion. However, appraisals are recognized in the mortgage banking industry to represent estimates of value, but should not be relied upon as the only measure of true worth or realizable value. Collateral value is determined solely in the judgment of the Company. Please see "*Portfolio Loan Criteria and Policies*" on Page 10 for additional details regarding the Company's loan underwriting methodology.

The Company believes that performing in-house real estate valuations provides it with a competitive advantage. By performing hundreds of in-house valuations per year in multiple geographies, the Company is able to continually refine its appraisal process and analyze real estate market trends within different geographies. This internal valuation analysis enables the Company to make faster and more informed lending decisions, which we believe helps mitigate risk while providing Portfolio Borrowers with a higher quality of service.

***"As-Is" Loan-to-Value and Asset Coverage Based on Percentage Completion***. In order to provide an estimate of the "as-is" real estate collateral value at end of period, and to account for Projects that are in process of construction or redevelopment, the Company uses a straight line percentage completion method to estimate the "as-is" real estate value. Specifically, the Company estimates the percentage completion of all real estate projects based on the percentage of construction funds disbursed as of a particular date and then multiplies this percentage completion by the total estimated value creation (estimated "after-repair" value of real estate minus purchase price) to determine the current value added through capital improvements. The current value added through capital improvements is then added to the original purchase price to calculate the "as-is" value of the real estate collateral as of a particular date. This estimated "as-is" value is then used to analyze the cumulative loan-to-value and real estate asset coverage of each investment program. It is important to note that the "as-is" loan-to-value and asset coverage ratios improve as the percentage completion increases.

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The Company reports to investors on a quarterly basis the cumulative "as-is" loan-to-value and cumulative "as-is" asset coverage ratios for all investment programs, based on the estimated "as-is" valuation of real estate collateral. Cumulative loan-to-value is the value of the debt or equity investment plus any senior debt divided by the estimated "as-is" real estate collateral value. Cumulative asset coverage is the estimated "as-is" real estate collateral value divided by the debt or equity investment and any senior debt. The Company also reports to investors on a quarterly basis the results of its valuation methodology testing. These tests compare the actual loan to sale-price for those loans that paid off during a given quarter against the Company's estimated valuation for those same properties at the time the loans were made. This quarterly analysis helps the Company to analyze and improve its in-house valuation methodology on an ongoing basis.

The Company provides further information about these metrics in the quarterly financial results it provides to investors and files with the Securities and Exchange Commission.

**Calculation of NAV**

***Net Asset Value Calculation and Valuation Procedures*.** Our Manager has adopted valuation procedures, as amended from time to time, that contain a comprehensive set of methodologies to be used in connection with the calculation of our net asset value ("*NAV*"). These guidelines, when considered in conjunction with other components of the price we may pay per Unit pursuant to a Redemption Request, are designed to produce a fair and accurate estimate of the price that would be received for our Units in an arm's-length transaction between a willing buyer and a willing seller in possession of all material information about our Units. Our NAV is calculated based on the net asset values of our Portfolio Loans, the addition of any other assets, such as REO, and the deduction of any other liabilities. Our NAV per Unit is calculated as of the last calendar day of each month and is available on the Company's website.

As a Regulation A issuer, we are required to issue financial statements in accordance with accounting principles generally accepted in the United States of America ("*GAAP*"). To calculate our NAV for the purpose of establishing a redemption price for our Units, we have adopted policies and procedures, which generally conform to GAAP. However, NAV is not a measure used under GAAP and the valuations of and certain adjustments made to our assets and liabilities used in the determination of NAV could differ from GAAP. As a result, our NAV should not be considered equivalent to stockholders' equity or any other GAAP measure.

A portion of the proceeds received in this offering may be used to satisfy redemption requests, including requests from our existing Unitholders, which may reduce liquidity, or may be used to pay down lower-cost Bank Borrowings, which may reduce profitability.

***Mortgage Loans*.** Mortgage loans, which the Fund has the intent and ability to hold to maturity, generally are stated at their outstanding unpaid principal balance with interest thereon being accrued as earned. Mortgage loans receivable make up the only class of financing receivables within the Company's lending portfolio.

If the probable ultimate recovery of the carrying amount of a loan, with due consideration for the fair value of collateral, is less than amounts due according to the contractual terms of the loan agreement and the shortfall in the amounts due are not insignificant, the carrying amount of the investment shall be reduced to the present value of estimated future cash flows discounted at the loan's effective interest rate. If a loan is collateral dependent, it is valued at the estimated fair value of the related collateral. Any write-downs based on the asset's fair value are charged to the allowance for loan losses.

Interest is accrued daily based on the principal of the loans. If events and/or changes in circumstances cause management to have serious doubts about the further collectability of the contractual payments, a loan may be categorized as impaired, and interest is no longer accrued. Any subsequent payments on impaired loans are applied to reduce the outstanding loan balances including accrued interest and advances.

***REO and Foreclosed Assets*.** Real estate acquired through or in lieu of loan foreclosure that is to be held for any purpose other than use in operations, is initially recorded at fair value less estimated selling cost at the date of foreclosure. Any write-downs based on the asset's fair value at the date of acquisition are charged to the allowance for loan losses. After foreclosure, real estate held for sale is carried at the lower of the new cost basis or fair value less estimated costs to sell. If the future undiscounted cash flows of real estate held for sale exceed the carrying value, the asset value is recaptured to the estimated fair value, not to exceed the original basis in the property after reversion. Costs of real estate improvements are capitalized, whereas costs relating to holding real estate are expensed. The portion of interest costs relating to development of real estate is capitalized. Valuations are periodically performed by management, at least annually, and any subsequent write-downs are recorded through a valuation allowance.

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***Liabilities*.** The value of our company-level liabilities will be included as part of our NAV calculation. We expect that these liabilities will primarily be Bank Borrowings, which will be held at cost, but will also include accounts payable and accrued operating expenses. All liabilities will be valued using widely accepted methodologies specific to each type of liability.

***NAV and NAV Per Unit Calculation*.** The Company uses the "share-based" accounting methodology to calculate NAV. Because the Company's assets are generally "held to maturity" in the case of mortgage loans receivable secured by real estate, or "held for sale" in the case of REO assets, the value of Units generally do not change due to appreciation or depreciation of investments. The value of a Unit generally increases intra-month due to accrued but undistributed profits earned from net interest income on mortgage loans or short-term capital gains or losses from the sale of REO assets. At month end, net profits are generally (though not necessarily) distributed to Unitholders. A Unitholder who elects cash distribution will receive monthly profit distributions in cash, and a Unitholder who elects reinvestment will purchase additional Units at $1.00 per Unit. After monthly net profits have been distributed, the value of each Unit returns to $1.00 per Unit. In contrast, the "capital-based" accounting methodology would not issue new Units to investors who chose to reinvest profits, causing the value of each Unit to increase by the amount of profit distribution.

Our NAV per Unit as of the year ended December 31, 2024 and 2025 was $1.00 per Unit. Our NAV per Unit is calculated as of the last calendar day of each month and is available on the Company's website. Further information about how we calculate NAV, including a detailed breakdown of each component, can be found in our most recent Offering Circular under the head "*NAV and NAV Per Unit Calculation*".

**Purchase and Sale of Loans** 

The Company typically originates its mortgage loans. However, the Company may also purchase loans from unrelated third parties. Loans purchased by the Company must not be in default at the time of purchase and must otherwise satisfy the lending guidelines described above. Generally, the purchase price to the Company for any such loan will be the lesser of par value or fair market value. From inception (2009) through the date of this Form 1-K, the Company has not purchased a mortgage loan.

The Company, as a real estate investment trust (REIT), is not permitted to programmatically make loans primarily for the purpose of reselling such loans in the ordinary course of business; however, the Company may sell mortgage loans through a taxable REIT subsidiary. In September 2024, the Company organized a new wholly-owned taxable REIT subsidiary, Iron Bridge Mortgage Fund 2, LLC ("*IBMF 2*"). This subsidiary was created to facilitate the programmatic sale of mortgage loans. The Company anticipates IBMF 2 to be additive to the Company's earnings. During the year ended December 31, 2025, its first partial year of operations, IBMF 2 originated and sold whole mortgage loans to an unaffiliated third-party buyer, generating total revenues of $171,728, comprised of $136,920 of mortgage interest income and $28,096 of loan servicing income on sold loans. After operating expenses and income tax expense of $24,718, IBMF 2 contributed net income of $73,753 to the consolidated results of the Company..

The Company may also enter into inter-creditor agreements if the Manager determines that it is advantageous for the Company to do so based upon the current interest rates, the length of time that the loan has been held by the Company, and the overall investment objectives of the Company.

The Company makes mortgage loans for investment and does not expect to engage in real estate operations in the ordinary course of business, except as may be required if the Company forecloses on a property on which it has invested in a mortgage loan and takes over ownership and management of the property. The Company may sell non-performing Portfolio Loans or foreclosed property securing Portfolio Loans, or sell an interest in such collateral to an affiliate of the Company, for the purpose of restructuring the Portfolio Loan or repositioning the property for sale. From inception (2009) through the date of this Form 1-K, the Company has not sold a loan or a property to an affiliate of the Company.

None of the Company, its Manager, Managing Directors or affiliates is precluded from (i) selling a property to any Equity Program investor in the Company in connection with a foreclosure, including with purchase financing, or (ii) making a loan to, purchasing a loan from or entering into a loan or co-lending transaction or activity with any Equity Program investor in the Company, provided that any transaction meets our contractual obligations under our agreements related to any other contractual or legal obligations. From inception (2009) through the date of this Form 1-K, the Company has not completed such a transaction.

**Legal Proceedings** 

The Company is not subject to any legal proceedings that are material to its business or financial condition.

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**Competition** 

The real estate market is competitive and rapidly changing. We expect competition to persist and intensify in the future, which could harm our ability to identify suitable Portfolio Loans. The business in which the Company is engaged is highly competitive, and the Company and Manager and its affiliates compete with numerous other established entities, including banks and credit unions. The Company and Manager also expect to encounter significant competition from other market participants including private lenders, private equity fund managers, real estate developers, pension funds, real estate investment trusts, other private parties, potential investors or homeowners, and other people or entities with objectives similar in whole or in part to those of the Company. Competition could result in reduced volumes, reduced fees or the failure of the Company to achieve or maintain more widespread market acceptance, any of which could harm the Company's business. Most of our current or potential competitors have significantly more financial, technical, marketing and other resources than the Company, and may be able to devote greater resources to the development, promotion, sale and support of their platforms and distribution channels. The Company's potential competitors may also have longer operating histories, or extensive customer bases, greater brand recognition and broader customer relationships than we have.

The Company has historically been able to earn Portfolio Loan yields above the industry average by providing superior service to its Portfolio Borrowers and by opportunistically expanding its loan origination in those markets that offer the best return per unit of risk. However, we anticipate that our portfolio yields will continue to decline over time as we adjust our loan programs to remain price competitive. In order to remain competitive long-term the Company must continue to provide its borrowers with a superior quality of service and lower its cost of capital in order to provide borrowers with more competitively priced loans.

**Governmental Regulation** 

***Investment Company Act.*** An investment company is defined under the Investment Company Act to include any issuer engaged primarily in the business of investing, reinvesting, or trading in securities. Absent an exemption, investment companies are required to register as such with the SEC and to comply with various governance and operational requirements. We intend to structure the operation of the Company so as not to subject the Company to the provisions of the Investment Company Act. In particular, the Company expects to rely on, among other things, the exemption from registration afforded by compliance with Section 3(c)(5) of the Investment Company Act. Section 3(c)(5) excludes from the definition of "investment company" issuers of non-redeemable securities primarily engaged in "purchasing or otherwise acquiring mortgages and other liens on and interests in real estate." The Manager has not sought a no-action letter from the SEC to confirm that the Company is eligible for this exemption. However, the Manager will rely on guidance issued by the SEC stating that so long as (1) qualifying percentages of the Company's assets consist of mortgages and other liens on or interests in real estate; and (2) the remaining percentage of the Company's assets consist primarily of real estate-related assets, the Company will remain exempt from the Investment Company Act registration requirements. For purposes of maintaining eligibility for this exemption, we will treat real estate loans as qualifying interests within this guidance only when they are fully secured by real estate. If we were required to register under the Investment Company Act, we would be subject to numerous requirements and restrictions relating to our structure and operation.

***Lending Regulations.*** The Company is a lender with respect to its Portfolio Loans. Oregon and other states have numerous laws and regulations, which apply to the activities of lenders and the rights of borrowers. The applicability of these laws and regulations, and their exemptions and exclusions, are frequently complex and highly fact-centric, and they vary by jurisdiction and are subject to change. In addition, litigation in a number of states has imposed liability upon lenders, or otherwise adversely impacted lenders, in a manner that Members may not be accustomed to as a result of other investment activities. For example, a number of states have adopted usury laws, which generally prohibit the charging of interest in certain circumstances in excess of a statutorily defined rate. The Company relies on qualified advisors and uses commercially reasonable efforts to comply with laws and regulations applying to lenders and borrowers, and seeks exemptions and exclusions as advisable from such laws where appropriate to meet the investment objectives of the Company.

In addition, the Company makes its Portfolio Loans pursuant to state finance lender licensing exceptions for commercial loans. However, the Company or the Manager may obtain a finance lender's license in specific states or retain the services of third parties to comply with such licensing, should it be deemed advisable. The Company relies on qualified advisors and uses commercially reasonable efforts to comply with laws and regulations applying to lenders and borrowers, and seeks exemptions and exclusions as advisable from such laws where appropriate to meet the investment objectives of the Company. The Company believes that such efforts are sufficient to avoid issues of noncompliance. However, investors should be aware that, under certain circumstances, a failure to comply with applicable regulations by the Company could result in civil or criminal penalties.

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***Lender Liability.*** As an additional consideration, legal decisions in many jurisdictions have imposed liability upon lenders for actions such as declaring defaults with respect to loans and refusing to meet company loan commitments under certain circumstances. In addition, some courts have permitted litigants to pursue claims against lenders for environmental torts of a borrower and other liability as a result of their association with the borrower. Such so-called "lender liability" is a developing and uncertain area of the law, and there can be no assurance that such a claim could not be brought against the Company or, by extension, an investor. In addition, in some cases, courts have re-characterized loans or debt securities as equity instruments, such that lenders or debt security holders have been subject to "equitable subordination" and thus not entitled to the preferred status of a creditor in a bankruptcy or other adversarial proceeding. Such decisions have been highly fact specific, and there can be no assurance that a court would not follow a similar approach with respect to the Company's loans to its Portfolio Borrowers. Investors are encouraged to consult with their legal counsel regarding the lender-related issues discussed above.

***Environmental Regulations*.** Federal, state and local laws and regulations impose environmental controls, disclosure rules and zoning restrictions that directly impact the management, development, use, or sale of real estate. Such laws and regulations tend to discourage sales and lending activities with respect to some properties, and may therefore adversely affect us specifically, and the real estate industry in general. The Company's failure to uncover and adequately protect against environmental issues in connection with a Project investment may subject us to liability. Environmental laws and regulations impose liability on current or previous real property owners or operators for the cost of investigation, cleaning up or removing contamination caused by hazardous or toxic substances at the property. Liability can be imposed even if the original actions were legal and the owner had no knowledge of, or was not responsible for, the presence of the hazardous or toxic substances. Such liabilities may interfere with the Company's ability to realize on its lending activities.

**Property** 

The Manager leases office space for its principal executive offices in Portland, Oregon pursuant to a multi-year lease. We believe that these facilities are adequate for our current operations.

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**ITEM 2 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS** 

The following is management's discussion and analysis of the Company's results of operation, financial condition, and liquidity.

**Overview** 

We are a private lender formed in 2009 as an Oregon limited liability company. The Company makes commercial purpose loans by lending funds to real estate investors to finance the ownership, entitlement, development and redevelopment of residential and commercial real estate throughout the United States. We generate most of our revenue from interest on loans and loan fees. Our loan portfolio consists of a mix of single-family and multi-family redevelopment and new construction Projects. Our primary source of funding is private equity, private debt and Bank Borrowings. Our largest expenses are management fees paid to the Manager, Iron Bridge Management Group LLC, and interest paid on private debt and Bank Borrowings.

The following selected financial data as of and for the fiscal years ended December 31, 2025 and 2024 is derived from audited financial statements of the Company and should be read in conjunction with such financial statements and notes which are included in this Form 1-K beginning on Page F-3.

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|:---|:---|:---|
|  | **As of or for the Year Ended**  | **As of or for the Year Ended**  |
|  | **December 31,**  | **December 31,**  |
|  | **2025** | **2024** |
| **Selected income statement data** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest income | $16152647 | $14871066 |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest expense | 4448230 | 4329181 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net interest income | 11704417 | 10541885 |
| &nbsp;&nbsp;&nbsp;&nbsp; Provision for loan losses | 425008 | 184267 |
| &nbsp;&nbsp;&nbsp;&nbsp; Non-interest expense | 4762754 | 4995523 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net income (loss) | 7125579 | 5641330 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net margin | 43.6% | 37.7% |
| **Selected balance sheet data** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total assets | $133260877 | $127045296 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net loans | 129019781 | 123449068 |
| &nbsp;&nbsp;&nbsp;&nbsp; Rental property, net |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Real estate owned held for sale | 1745103 | 2514438 |
| &nbsp;&nbsp;&nbsp;&nbsp; Allowance for loan losses | 2011675 | 1983502 |
| &nbsp;&nbsp;&nbsp;&nbsp; Bank Borrowings, net | 60754755 | 58935982 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class D Equity | 11176092 | 13491223 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class C Equity | 29247876 | 27109479 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B Equity | 22933556 | 20454469 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A Equity | 7579823 | 5254851 |

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**Fluctuating interest rates could adversely affect our business.**

Significant increases in market interest rates on loans, or the perception that an increase may occur, could adversely affect our ability to originate new loans and our borrowers' ability to sell their projects to repay our loans. If this occurred, it could cause an increase in nonperforming assets and charge offs, which could adversely affect our business.

Further, our profitability is dependent to a large extent upon net interest income, which is the difference (or "spread") between the interest earned on loans, and other interest-earning assets and the interest paid on borrowings, and other interest-bearing liabilities. Because of the differences in maturities and repricing characteristics of our interest-earning assets and interest-bearing liabilities, changes in interest rates do not produce equivalent changes in interest income earned on interest-earning assets and interest paid on interest-bearing liabilities. Accordingly, fluctuations in interest rates could adversely affect our interest rate spread, and, in turn, our profitability. We are unable to predict changes in interest rates, which are affected by factors beyond our control, including inflation, deflation, recession, unemployment, money supply and other changes in financial markets.

During the year ended December 31, 2025, the Company saw stable loan demand as the Federal Reserve continued its rate reduction cycle that began in the second half of 2024. The Company's adjustable-rate loan portfolio benefited from the prevailing rate environment, and borrower demand remained supported by continued activity in the residential real estate market. Due to the short-term duration of the Company's Portfolio Loans, the Company's Portfolio Borrowers were able to sell their Projects and recycle their capital into new Projects at lower prices to adjust for changing market conditions. That being said, economic concerns may result in a reluctance of our Portfolio Borrowers to start new Projects. Due to the ongoing economic uncertainty caused by geopolitical events, the Company continued its risk mitigation strategy initiated at the start of COVID-19 in 2020: (1) most new loans required borrowers to pre-pay interest; (2) we continued lending to only borrowers that we assess to have sufficient credit worthiness, industry experience and liquidity, as discussed above under "*Borrowers*"; (3) we continued lending primarily in non-judicial states, which we believe to be less risky than judicial states; and (4) we continued lending on lower risk Projects (less complex scope of work, existing occupancy permits, resale prices in the liquid segments of each real estate sub-market).

In addition to the impact on our operating results, aggressive rate increases by the Federal Reserve also impacts our ability to raise capital from investors. Members are entitled, on a non-compounding basis, payable monthly in arrears, to 9% (Class B Equity), 6% (Class C Equity), or 5% (Class D Equity) per annum non-guaranteed priority return on their invested capital. Interest rate increases also create an environment where investors have a greater variety of investment alternatives offering returns similar to those we are offering our members, sometimes at lower risk. The depression of real estate market prices caused by increased interest rates may also dampen the market for real estate related securities, regardless of any particular impact on the Company. This may materially affect the amount of funds we are able to raise for purposes of funding Fund loans.

**Inflation** 

The effect of changing prices on financial institutions is typically different than on non-banking companies since a substantial portion of a lender's assets and liabilities are monetary in nature. In particular, interest rates are significantly affected by inflation, but neither the timing nor magnitude of the changes to interest rates can be directly correlated to price level indices; therefore, the Company can best counter inflation over the long term by managing sensitivity to interest rates of its net interest income and controlling levels of noninterest income and expenses. In addition, the short-term duration of the Company's Portfolio Loans minimizes interest rate risk compared to loan portfolios with longer durations.

**REIT Election**

The Company elected to be treated as a corporation taxed as a "real estate investment trust" ("*REIT*") for U.S. federal income tax purposes under the Code, commencing with its taxable year ending December 31, 2022. A REIT is an entity entitled to special and beneficial U.S. federal income tax treatment, provided it satisfies various requirements relating to its organization, its ownership, its distributions and the nature of its assets and income. Among other requirements, a REIT generally must derive most of its income from real estate loans and real property and its assets predominantly must consist of such loans and real property. The entity must make a special election under the Internal Revenue Code of 1986, as amended (the "Code") to be treated as a corporation taxed as a REIT. Subject to a number of significant exceptions, an entity that qualifies as a REIT generally is not subject to U.S. federal corporate income taxes on income and gain that it distributes annually to its members. However, a REIT nonetheless may be subject to a variety of taxes, including payroll taxes and state, local and foreign income, property, gross receipts and other taxes on its assets and operations. See "Certain Federal Income Tax Considerations" for additional details.

Generally, the benefits of investing in a REIT include (i) 20% 199A tax deduction for taxable investors; (ii) no unrelated business taxable income (UBTI) tax for tax advantaged investors, (iii) simplified annual tax reporting form 1099-DIV, and (iv) investor state taxation based on the investor's state of residence (no multi-state tax filing requirements).

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**Recapitalizations**

As of January 31, 2021, the Company had one class of equity, and in addition to the Bank Borrowings, two forms of debt outstanding: the Junior Notes and the Senior Notes.

Effective February 1, 2021, the Company adopted a Second Amended and Restated Operating Agreement, which among other changes, created four classes of membership interests consisting of **Class A**, **Class B**, **Class C** and **Class D Units** (collectively "*Units*"):

• The Class A Units were issued to employees of the Company's Manager, Iron Bridge Management Group, LLC (the "*Manager* "), and/or their tax-advantaged accounts. The return on these Class A Units is intended to replace the right of the Manager to receive "Performance Fees". See "*Management Fees*" on Page 38 of this Form 1-K.

• The former membership interests of the Company were exchanged for Class B Units.

• The Company's Junior Notes were, at the election of the holders, converted into Class C Units of the Company.

• A new Class D Unit was created.

Then, in September 2022, in order to comply with various requirements relating to REIT organization and ownership, the Company terminated its Senior Note offering and qualified a new Class D Units offering. On January 1, 2023, the Company repaid all outstanding amounts owing under such Senior Notes in cash or through issuance of Class D Units.

References herein to the Junior Notes or Senior Notes refer to the historical Junior Notes or Senior Notes, respectively. There have been no Junior Notes outstanding since February 1, 2021, and no Senior Notes outstanding since January 1, 2023.

The Company may unilaterally redeem the Units, and any member has the right to require the redemption of their Units, subject to certain limitations, including that the Company is prohibited from redeeming any Class A Units or Class B Units when the unreturned capital contributions of the Class A Units and Class B Units on an aggregate basis equal less than 20% of the total assets of the Company.

At any meeting of members, each member has one vote for each Unit held by such member. Unless a greater vote is required by the Oregon Limited Liability Company Act, as amended from time to time, or the Operating Agreement, any action approved by members with more than one-half of the issued and outstanding Units of all Members is the act of the members.

**International Conflict** 

The Company's portfolio consists entirely of domestic residential mortgage loans secured by real property located in the United States. The Company has no direct exposure to international markets, foreign currency risk, or borrowers with material operations outside the United States. Accordingly, the Company does not expect ongoing international conflicts, including current military conflicts in various regions, to have a direct impact on its business or portfolio performance.

However, geopolitical instability can affect the Company indirectly through its influence on domestic interest rates, broader economic conditions, and residential real estate demand. Prolonged international conflict can contribute to inflationary pressure, supply chain disruption, and macroeconomic uncertainty, each of which may influence Federal Reserve monetary policy and, in turn, the interest rate environment in which the Company operates. Changes in interest rates affect the Company's cost of capital, the yield available on new Portfolio Loans, and the pace of residential real estate transactions that create demand for the Company's loan products.

The Company monitors geopolitical developments to the extent they are reasonably likely to affect domestic interest rates, general economic activity, or home buyer demand in the markets it serves. To date, the Company has not experienced a material adverse impact on its business attributable to international conflict.

**IBMF 2/TRS**

During the second quarter of 2025, the Company began selling whole mortgage loans to an unaffiliated third-party institutional investor through IBMF 2, supplementing its existing strategy of holding loans on its balance sheet. This strategic expansion is intended to enhance borrower acquisition efficiency and optimize capital deployment.

Historically, the Company was periodically constrained by available capital, requiring it to decline loan opportunities or moderate its borrower marketing efforts, which require significant lead time to adjust. With the ability to sell whole loans through IBMF 2, the Company can maintain a more fully deployed loan portfolio while directing excess loan volume to institutional buyers. This is expected to support more consistent marketing operations, a steadier pipeline of new borrowers, and incremental loan origination income.

Because frequent programmatic origination and sale of loans for gain can constitute dealer activity that may jeopardize a REIT's tax status, the Company established IBMF 2 as a wholly owned Taxable REIT Subsidiary to conduct this business activity. Whole loans are originated, sold, and serviced through IBMF 2, which is subject to corporate income taxes on its net earnings. After-tax earnings are distributed to the Company and are expected to be accretive to the Company's consolidated results.

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**Critical Accounting Policies and Accounting Estimates** 

Critical accounting policies are defined as those that are reflective of significant judgments and uncertainties, and which could potentially result in materially different results under different assumptions and conditions. The Company believes that the most critical accounting policies upon which its financial condition depends, and which involve the most complex or subjective decisions or assessments, are set forth below.

***Allowance for Loan Losses*.** The allowance for loan losses is established through a provision for loan losses charged to expense, which affects our earnings directly. Loans are charged against the allowance for loan losses when the Company believes that the collectability of all or some of the principal is unlikely. The allowance is an amount that reflects the Company's estimate of the level of probable incurred losses in the loan portfolio. Factors considered by the Company in determining the adequacy of the allowance include, but are not limited to, detailed reviews of individual loans, historical and current trends in loan charge-offs for the various portfolio segments evaluated, the level of the allowance in relation to total loans and to historical loss levels, levels and trends in non-performing and past due loans, external factors including regulatory, competition, and the Company's assessment of economic conditions.

The provision for loan losses is the charge to operating earnings necessary to maintain an adequate allowance for loan losses. We have developed policies and procedures for evaluating the overall quality of our loan portfolio and the timely identification of problem loans. The Company continuously reviews these policies and procedures and makes further improvements as needed. However, the Company's methodology may not accurately estimate inherent loss or external factors and changing economic conditions may impact the loan portfolio and the level of reserves in ways currently unforeseen.

The Company expects to accrue a provision for loan losses at a rate of 0% and 1.0% annualized. See *"Non-Performing Loans and REO Assets"* on Page 19 for additional disclosures.

***REO and Foreclosed Assets***. Assets acquired through or in lieu of loan foreclosure are initially recorded at lower of cost or fair value less estimated costs to sell, establishing a new cost basis. Subsequent to foreclosure, valuations are performed annually and the assets are carried at the lower of carrying amount or fair value less estimated costs to sell. Revenue and expenses from operations and changes in the valuation allowance are included in other non-interest income or expense. Costs related to the development and improvement of REO assets are capitalized.

Due to the subjective nature of establishing the asset's fair value when it is acquired, the actual fair value of the REO or foreclosed asset could differ from the original estimate. If it is determined that fair value declines subsequent to foreclosure, a valuation allowance is recorded through non-interest expense. Gains and losses on the disposition of REO and foreclosed assets are netted and posted to other non-interest income or expenses. See *"Non-Performing Loans and REO Assets"* on Page 19 for additional disclosures.

***Fair Value of Mortgage Loans Receivable***. The Company has the intent and ability to hold its mortgage loans to maturity. Therefore, mortgage loans are stated at their outstanding unpaid principal balance with interest thereon being accrued as earned. Mortgage loans receivable make up the only class of financing receivables within the Company's lending portfolio.

In September 2025, the Company began conducting certain loan origination activities through its wholly owned taxable REIT subsidiary, Iron Bridge Mortgage Fund 2, LLC ("IBMF 2"). IBMF 2 originates mortgage loans with the primary intent to sell such loans to unaffiliated third-party buyers, generally within a short period of time following origination.

In limited circumstances where a loan is not sold within the expected timeframe, such loan may be sold by IBMF 2 to the Company at a price intended to approximate fair market value and would be subsequently held by the Company for investment. The Company does not intend to routinely acquire loans from IBMF 2, and such transactions are expected to occur only on an infrequent and incidental basis. As of December 31, 2025, no loans have been sold by IBMF 2 to the Company.

As the financial statements are presented on a consolidated basis, all intercompany transactions between IBMF 2 and the Company are eliminated in consolidation. Mortgage loans originated by IBMF 2 are generally classified as held for sale, while loans held by the Company, including any loans acquired from IBMF 2, are classified as held for investment and carried consistent with the Company's accounting policy described above, subject to impairment considerations described below.

Given their short expected holding period, loans classified as held for sale are generally carried at cost, which the Company believes approximates fair value; however, the Company evaluates these loans for impairment and any necessary valuation adjustments on a periodic basis.

If the probable ultimate recovery of the carrying amount of a loan, with due consideration for the fair value of collateral, is less than amounts due according to the contractual terms of the loan agreement and the shortfall in the amounts due are not insignificant, the carrying amount of the loan will be reduced to the present value of estimated future cash flows discounted at the loan's effective interest rate. If a loan is collateral-dependent, it is valued at the estimated fair value of the related collateral. If events and or changes in circumstances cause the Company to have serious doubts about the further collectability of the contractual payments, a loan may be categorized as impaired and interest is no longer accrued. Any subsequent payments on impaired loans are applied to reduce the outstanding loan balances including accrued interest and advances. See "*Non-Performing Loans and REO Assets"* on Page 19 for additional disclosures.

***Deferred Loan Origination Fees***. The Company will capitalize loan origination fees and recognize the fees as an adjustment of the yield on the related loan. Deferred loan origination fees are accreted to income over the life of the loan under the effective interest method.

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The Company offers its borrowers loan options with a combination of low origination fees and high interest rates or loans with high origination fees and low interest rates. While the yield earned by the Company on these loan options is similar, changes in the percentage of Portfolio Loans with high origination fees can affect the amount of interest income derived from deferred loan origination fees.

***Income Taxes*.** During 2021, the Company was a limited liability company for federal and state income tax purposes. Under the laws pertaining to income taxation of limited liability companies, the Company as an entity paid no federal income tax. Accordingly, no provision for income taxes besides the minimum state franchise taxes and the LLC gross receipts fees are reflected in the Company's financial statements for 2021. During 2022, the Company elected to be treated as a corporation taxed as a "real estate investment trust" ("*REIT*"). A REIT is an entity entitled to special and beneficial U.S. federal income tax treatment, provided it satisfies various requirements relating to its organization, its ownership, its distributions and the nature of its assets and income. Subject to a number of significant exceptions, an entity that qualifies as a REIT generally is not subject to U.S. federal corporate income taxes on income and gain that it distributes annually to its members. However, a REIT nonetheless may be subject to a variety of taxes, including payroll taxes and state, local and foreign income, property, gross receipts and other taxes on its assets and operations.

The Company has evaluated its current tax positions and has concluded that as of December 31, 2025, the Company does not have any significant uncertain tax positions for which a reserve would be necessary.

**Comparison of Operating Results for the Years Ended December 31, 2025 and 2024** 

***Net Income, Net Margin and Net Interest Rate Spread*.** Net income was $7,125,579 for the year ended December 31, 2025, compared to $5,641,330 for the year ended December 31, 2024, an increase of $1,484,249, or 26.3%. The increase in net income year-over-year was primarily attributable to an increase in average interest-earnings assets and a decrease in servicing fees to the Manager. See "*Net Interest Income*" on Page 32 for additional details.

For the years ended December 31, 2025 and 2024, the net interest margin was 8.958% and 8.315%, respectively, and net interest rate spread was 5.074% and 3.835%, respectively. The increase in net interest margin during 2025 compared to 2024 primarily reflects an increase in the yield earned on average interest-earnings assets and a decrease in the yield paid on average interest-bearing liabilities (Bank Borrowings). See "*Bank Borrowings*" on Page 35 for additional details.

***Interest Income***. For the year ended December 31, 2025, the Company recognized consolidated mortgage interest income of $16,152,647, an increase of $1,281,581, or 8.6%, from $14,871,066 in the year ended December 31, 2024. Because IBMF 2, LLC ("IBMF 2"), the Company's Taxable REIT Subsidiary, commenced operations in the second quarter of 2025, the 2024 comparative period reflects IBMF activity only.

Of the $16,152,647 consolidated total, $16,015,727 was generated by the IBMF portfolio and $136,920 was generated by IBMF 2. The increase in IBMF interest income reflects 3.1% growth in the portfolio's average outstanding loan balance, and improved loan pricing with the average portfolio yield for 2025 at 12.362% compared to 11.740% during 2024.

IBMF 2's $136,920 of mortgage interest income consisted primarily of $114,158 of deferred loan origination fees recognized upon the sale of whole loans to an unaffiliated third-party buyer, plus interest accrued during the hold period prior to sale. IBMF 2 also recognized $28,096 of loan servicing income on sold loans, which is presented separately within total revenues. Because IBMF 2's model involves originating and selling whole loans rather than holding them to maturity, its interest income is recognized at point of sale and is not comparable to IBMF's portfolio yield metrics. During the year ended December 31, 2025, IBMF 2 sold 28 loans with an aggregate principal balance of $9,637,300.

The average daily balance of cash during the years ended December 2025 and 2024 was $4,911 and $13,666, respectively. Interest income earned on those cash balances during that time was immaterial.

***Interest Expense***. Total interest expense from Bank Borrowings increased $119,049, or 2.7%, to $4,448,230 for the year ended December 31, 2025 from $4,329,181 for the year ended December 31, 2024.

This increase was attributable to a 11.3% increase in average balance of Bank Borrowings to $61.0 million from $54.8 million, more than offsetting a 61 basis point decrease in the interest rate paid on those Bank Borrowings.

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***Net Interest Income**.* Net interest income increased $1,162,532, or 11.0%, to $11,704,417 for the year ended December 31, 2025 from $10,541,885 for the year ended December 31, 2024. The increase resulted primarily from an increase in loan demand. Our average interest-earning assets increased $3.9 million, or 3.1%, to $130.7 million for the year ended December 31, 2025 from $126.8 million for the year ended December 31, 2024, and the net interest rate spread increased 124 basis points to 5.074% for the year ended December 31, 2025 from 3.835% for the year ended December 31, 2024. The increase in our interest rate spread during 2025 reflected an improvement in both yields earned and paid. The 62 basis point increase in average yield earned on interest-earning assets was the result of an increase in our rate pricing during the fourth quarter of 2024. The 61 basis point decrease in average yield paid on interest-bearing liabilities primarily reflected a decreasing interest rate on Bank Borrowings as a result of Federal Reserve interest rate decreases. See "*Bank Borrowings"* on Page 35 for additional details.

***Non-Interest Expense***. Non-interest expense decreased $232,769, or 4.7%, to $4,762,754 for the year ended December 31, 2025, compared to $4,995,523 for the year ended December 31, 2024.The largest change in non-interest expense was a $472,714, or 12.2%, decrease in loan servicing fees during 2025. During the third quarter of 2025, the Manager decreased its loan servicing fee from 3% to 2% to increase the amount of profit distributions to investors. The second largest change in non-interest expense was a $200,671, or 29.7%, decrease in professional fees related to legal fees, marketing and technology development during 2025.

***Provision for Loan Losses***. Based on our analysis of loan portfolio performance, as outlined above starting on Page 30 in "*Critical Accounting Policies and Accounting Estimates – Allowance for Loan Losses*," we recorded a $425,008 provision for loan losses for the year ended December 31, 2025, compared to a provision of $184,267 for the year ended December 31, 2024. The allowance for loan losses was $2,011,675, or 1.5%, of total unpaid principal balance at December 31, 2025, compared to $1,983,502, or 1.6%, of total unpaid principal balance at December 31, 2024. The Company had four delinquent loans at December 31, 2025 compared to three delinquent loans at December 31, 2024. The allowance for loan losses reflects the estimate we believe to be appropriate to cover expected incurred losses inherent in the loan portfolio at December 31, 2025 and 2024.

It is important to point out that the Company's policy is to categorize a loan as both a Delinquent Loan and Non-Performing Loan and to begin the foreclosure process if the Company has not received payment from the borrower within 30 days of the due date. Industry standard is to categorize a loan as Delinquent for the first 90 days and then to categorize the loan as Non-Performing after 90 days. We believe that our more aggressive policy is appropriate given that our loans have shorter maturities relative to traditional loans. This policy enables the Company to get an earlier start on the foreclosure process should the loan continue to remain delinquent (the time to foreclose on a property can range from 75 to 180 days or longer in a judicial foreclosure or bankruptcy). However, this more conservative policy does tend to generate more Non-Performing Loans that are ultimately cured. See "*REO and Foreclosed Assets*", Page 30, for additional details.

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**Comparison of Financial Condition at December 31, 2025 and 2024** 

***Total Assets***. At December 31, 2025, total assets equaled $133.3 million, an increase of $6.3 million, or 4.9%, from $127.0 million at December 31, 2024. The increase in total assets was primarily reflecting increased loan demand.

***Mortgage Loans Receivable, Net*.** Net loans are the unpaid principal balance of Portfolio Loans, net of deferred loan origination fees, allowance for loan losses and fair value adjustments related to impairment. See "*Critical Accounting Policies and Accounting Estimates – Deferred Loan Origination Fees*" and "*– Fair Value of Mortgage Loans Receivable*" Page 30 for additional details.

At December 31, 2025, net loans equaled $129.0 million, an increase of $5.6 million, or 4.5%, from $123.4 million at December 31, 2024. The increase in mortgage loans receivable, net was primarily attributable to an increase in loan demand in 2025. The Company's average loan portfolio size was 4.5% higher during the year ended 2025 compared to 2024. See "*Portfolio Loan Characteristics*" Page 8 for additional details.

***Real Estate Held for Sale (REO)*.** As of December 31, 2025, the Company had REO asset inventory of $1.7 million (1.3% of total assets) comprised of one property located in Alameda County, California. The property is a single family residential new construction project that is ready for sale, pending the issuance of a public works permit by the City of Oakland. The Company anticipates recovering more than its cost basis in this property.

This compares to December 31, 2024, when the Company had REO asset inventory of $2.5 million (2.0% of total assets) comprised of one property located in Alameda County, California, and one property located in San Luis Obispo County, California.

***Rental Property*.** As of December 31, 2025 and 2024, the Company had no rental properties.

**Liquidity and Capital Resources** 

The Company's primary sources of funds include Portfolio Loan payoffs, monthly interest payments received on Portfolio Loans, and Bank Borrowings. Other sources of funds may include proceeds from Equity Program investors as well as the disposition of non-performing assets.

***Cash.*** Our cash account sweeps cash in excess of a minimum $10,000 balance on a daily basis and applies such funds to paying down our Bank Borrowings. As such, fluctuations in cash may vary based on the timing of such sweeps.

***Equity Program***. Our Equity Program is a continuous offering that allows the Company to raise additional equity as needed. Equity Program investors are able to request redemption of their equity units, subject to certain restrictions and limitations.

At December 31, 2025, equity totaled $71.0 million, an increase of $4.7 million, or 7.1%, from $66.3 million at December 31, 2024. (Amounts stated in millions; figures may not sum due to rounding.) See "*Statements of Changes in Members' Equity*" on Page 6 of our Financial Statements included in this report for additional details. This increase was primarily due to the impact of the challenging interest rate environment on capital raising efforts, which the Company anticipates will improved during 2026. Equity was comprised of $7.6 million of Class A Units, $22.9 million of Class B Units, $29.2 million of Class C Units, and $11.2 million of Class D Units.

The Company maintained sufficient equity balances in all periods to comply with bank covenants, and covenants in the Company's operating agreement pertaining to the different classes of equity.

***Class D Equity***. The Securities and Exchange Commission initially qualified the Class D Units offering pursuant to Regulation A effective September 22, 2022.

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The following table sets forth the Company's Class D Units at the dates indicated:

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|  | **As of the Year Ended**<br> **December 31,** | **As of the Year Ended**<br> **December 31,** |
|  | **2025** | **2024** |
| Total assets | $133260877 | $127045296 |
| Class D Equity | 11176092 | 13491223 |
| Percentage of total assets | 8.4% | 10.6% |

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***Class C Equity***. The Securities and Exchange Commission initially qualified the Class C Units offering pursuant to Regulation A effective March 18, 2025. Issuance prior to this date was made under Regulation D.

The following table sets forth the Company's Class C Units at the dates indicated:

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|  | **As of the Year Ended**<br> **December 31,**<br>**2025** | **2024** |
| Total assets | $133260877 | $127045296 |
| Class C Equity | 29247876 | 27109479 |
| Percentage of total assets | 21.9% | 21.3% |

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***Class B Equity***. The Securities and Exchange Commission initially qualified the Class B Units offering pursuant to Regulation A effective March 18, 2025. Issuance prior to this date was made under Regulation D.

The following table sets forth the Company's Class B Units at the dates indicated:

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|  | **As of the Year Ended**<br> **December 31,** | **As of the Year Ended**<br> **December 31,** |
|  | **2025** | **2024** |
| Total assets | $133260877 | $127045296 |
| Class B Equity | 22933556 | 20454469 |
| Percentage of total assets | 17.2% | 16.1% |

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***Class A Equity***. The Securities and Exchange Commission initially qualified the Class A Units offering pursuant to Regulation A effective March 18, 2025. Issuance prior to this date was made under Regulation D.

The following table sets forth the Company's Class A Units at the dates indicated:

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|  | **As of the Year Ended**<br> **December 31,** | **As of the Year Ended**<br> **December 31,** |
|  | **2025** | **2024** |
| Total assets | $133260877 | $127045296 |
| Class A Equity | 7579823 | 5254851 |
| Percentage of total assets | 5.7% | 4.1% |

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***Bank Borrowings***. The Company has a revolving line of credit ("*Columbia Credit Line*") from Columbia Bank, an Oregon state-chartered bank ("*Columbia*"), which acquired Umpqua Bank, the Company's previous lender in March 2023 but completed rebranding under the Columbia Bank name in September 2025. As of December 31, 2025 and 2024, $80 million was available under the Company's line of credit agreement with Columbia Bank. This revolving line of credit is collateralized by all of the Company's assets, including all of its Portfolio Loans, and is senior in priority Class A Units, Class B, Units, Class C Units and Class D Units. While the line of credit provides leverage and a source of capital to make loans, the primary benefit to the Company is cash management. Because the revolving line of credit allowed the Company to draw on and pay down the line of credit daily, the Company can use the line of credit to efficiently manage the ebbs and flows of Portfolio Loan funding and payoffs while keeping investor capital fully utilized. The revolving line of credit also provides the Company with liquidity to meet investor withdrawal requests.

The line of credit is subject to a "borrowing base" limitation. The borrowing base is an amount equal to the lesser of 65 percent of the outstanding balance of the Company's Portfolio; subject to certain adjustments and exclusions and subject to a cap of $80 million. At December 31, 2025, the borrowing base was $80 million. Under the line of credit, the Company is also required to maintain compliance with certain financial covenants, including maintenance at the end of each calendar quarter of (a) a debt to tangible net worth of not more than 1.00 to 1.00 ratio that did not exceed 0.50 to 1.00 (calculated as the outstanding line of credit balance divided by the sum of equity and Senior Notes); (b) a turnover ratio of no less than 1.00 to 1.00 (calculated as the ratio of paid off note receivables to average line of credit utilization); and (c) interest and preferred return coverage ratio of no less than 1.00 to 1.00 (calculated as the ratio of cash flow to interest expense and preferred returns). As of December 31, 2025, the Company was in compliance with all of the foregoing financial covenants.

The Company originally entered into a Business Loan and Security Agreement (Revolving Line of Credit) (the "*Columbia Loan Agreement*") with Columbia effective May 7, 2021, and in connection therewith issued to Columbia a promissory note (the "*Columbia Note*") for a maximum principal amount of up to $40 million. The conditions precedent to the effectiveness of the Columbia Credit Line were satisfied, and the transactions contemplated thereunder consummated, on May 14, 2021. The Columbia Credit Line refinanced the Company's previous $40 million revolving line of credit from Western Alliance Bank. Effective August 10, 2021, the Columbia Loan Agreement was amended to increase the maximum amount of funds available under the Columbia Credit Line to $50 million. Effective January 28, 2022, the Columbia Loan Agreement was amended to increase the maximum amount of funds available under the Columbia Credit Line to $60 million, and the interest rate spread was transitioned from 1-Month LIBOR plus 2.75% to 1-Month SOFR (Secured Overnight Financing Rate) plus 2.80 to comply with the Federal Reserve's request that banks phase out the use of LIBOR. Effective June 8, 2022, the Columbia Loan Agreement was amended to increase the maximum amount of funds available under the Columbia Credit Line to $75,000,000. On June 29, 2023, the Columbia Loan Agreement was decreased from $75 million to $60 million. The decrease in credit limit was requested by the Company to reduce interest expense. On July 2, 2024, the Columbia Loan Agreement was increased, again at the Company's request, from $60 million to $80 million, and the maturity date was extended to May 5, 2026. In July 2025, the maturity date was further extended to May 5, 2027 and the Columbia Loan Agreement, as well as certain related agreements, were amended and restated to incorporate all still applicable amendments since the original Columbia Loan Agreement. As of December 31, 2025, the outstanding balance under the facility was $60,754,755, with $19,245,245 of remaining availability.

For the years ending December 31, 2025 and 2024, average line of credit utilization during these periods was 76.3% and 79.1%, respectively.

The Company targets a line of credit utilization rate of 50-80%, which allows the Company to meet unanticipated loan requests from borrowers or unanticipated withdrawal requests from investors. Similarly, if the Company's Portfolio Loans pay off faster than anticipated or if new loan originations do not match the rate of loan payoffs, the line of credit can be paid down while keeping investor capital fully utilized.

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***Off-Balance Sheet Arrangements***. In the normal course of operations, the Company engages in financial transactions that, in accordance with generally accepted accounting principles, are not recorded in its financial statements. Specifically, the Company does not charge interest to borrowers on loan proceeds held back for construction until the funds are disbursed. Upon disbursement, the incremental loan proceeds are added to the existing unpaid principal balance of the loan. This practice requires the Company to categorize these held back loan proceeds as an unfunded loan balance.

The Company provides further information about these off-balance sheet arrangements in the quarterly financial results it provides to investors and files with the Securities and Exchange Commission.

**Trend Information**

Due to the ongoing economic uncertainty caused by Federal Reserve interest rate increases during 2022 and 2023, the Company continued its risk mitigation strategy: (1) most new loans required borrowers to pre-pay interest; (2) we continued lending to only borrowers that we assess to have sufficient credit worthiness, industry experience and liquidity, as discussed above under "*Borrowers*"; (3) we continued lending primarily in non-judicial states, which we believe to be less risky than judicial states; and (4) we continued lending on lower risk projects (less complex scope of work, existing occupancy permits, resale prices in the liquid segments of each real estate sub-market).

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**ITEM 3 DIRECTORS AND OFFICERS**

The Company is managed by its Manager, Iron Bridge Management Group, LLC, an entity owned and managed by its Managing Director. The Managing Director, through the Manager, is responsible for and has complete control over the Company's operations, lending policies and decisions with respect to the Portfolio Loans. The Manager was organized in May 2008. Effective March 15, 2024, the sole Managing Director of the Manager is Gerard Stascausky. Before March 15, 2024, the co-owners and co-Managing Directors of the Manager were Gerard Stascausky and Sarah Gragg Stascausky, who were previously married.

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| | | | |
|:---|:---|:---|:---|
| **Name** | **Position** | **Age** | **Term of Office** |
| Gerard Stascausky | Chief Executive Officer;<br> Managing Director of Manager | 56 | May 2008 |

---

In February 2025, the Manager also appointed Mr. Stascausky as Chief Executive Officer of the Company, as an extension of his role as Managing Director of the Manager. Mr. Stascausky receives no additional compensation for this role.

**Gerard Stascausky** 

Mr. Stascausky, the Company's Chief Executive Officer and co-founder of the Manager, has been investing in the real estate foreclosure and pre-foreclosure market since 2004. Prior to launching the Manager, he ran Bridgeport Home Solutions LLC, which specialized in the research, acquisition and management of foreclosure and pre-foreclosure properties in the Portland metro market.

Mr. Stascausky brings to the Manager over 16 years of investment banking experience. In 1993, he joined Sutter Securities as an investment banking analyst, structuring municipal debt offerings. In 1996, he left to join the equity research department at Montgomery Securities, where he conducted securities research on the payment processing and networking equipment industries. With his background in technology research, he joined Credit Suisse in 1999 as one of the industry's first technology specialist equity salesmen. Finally, in 2003, he was recruited to join Pacific Crest Securities, where he served as a senior equity salesman, research product manager and member of the management team.

Mr. Stascausky graduated with honors from the University of California, Davis in 1993. He earned a B.A. in Economics and minors in Psychology and Political Science. In 1996, he earned his Chartered Financial Analyst designation from the CFA Institute.

**Employees** 

In addition to its Managing Director, the Manager has eleven employees, including two in accounting, five in loan underwriting, two in loan servicing and one in operations.

**Company Expenses** 

The Company will be responsible for all of its operating expenses including, without limitation, (i) all costs and expenses incurred in connection with identifying, evaluating, structuring, negotiating, developing, closing and servicing investments consummated by the Company (including, without limitation, any due diligence, travel, legal and accounting expenses, any deposits and commitment fees and other fees and out-of-pocket costs related thereto); (ii) taxes of the Company; (iii) all costs and expenses associated with obtaining and maintaining insurance for the Company and its assets, if any; (iv) all costs related to litigation (including threatened litigation) involving the Company, and indemnification expenses; (v) expenses and fees associated with third party auditors, accountants, attorneys and tax advisors and other professionals with respect to the Company and its activities; (vi) fees incurred in connection with the maintenance of bank or custodian accounts; (vii) brokerage points and commissions, referral and finder fees, and other investment costs incurred by or on behalf of the Company and paid to third parties; (viii) all expenses incurred in connection with the registration of the Company's securities under applicable securities laws or regulations; (ix) all expenses of liquidating the Company or its investments; and (x) other general ordinary Company administration and overhead expenses. The Company will also pay all expenses associated with the offering, including expenses for the preparation, filing, printing, legal, accounting and other fees and expenses related to the offering of its Units.

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The Manager will be responsible for costs of its own personnel (including compensation and benefits), office space and general overhead expenses incurred in performing duties to the Company, provided, however, that, for administrative convenience, the Company may lease certain employees from the Manager and, in such event, the Company will reimburse the Manager for all W-2 wages, deferred compensation and employee benefits paid to the employees leased by the Company. To the extent that the Company reimburses the Manager for W-2 wages paid to the employees leased by the Company (the **"Company Employee Expense"**), the Company (and not the Manager) will be entitled to claim the Company Employee Expense for income tax purposes. As of the date of this Form 1-K, the Company has not leased any employees from the Manager.

**Management Fees** 

The Company does not have any employees or directors. Gerard Stascausky, who serves as Chief Executive Officer, is the only officer of the Company and is also the Managing Director of our Manager. The Manager is responsible for managing the Company, and has delegated certain authority to Mr. Stascausky as an extension of his role as Managing Director of the Manager. The Manager receives compensation for its services to the Company, in the form of a loan servicing fee. Mr. Stascausky is not paid any compensation by the Company for his role as Chief Executive Officer. During the year ended December 31, 2025, the Manager received the following compensation (all of which was received in cash):

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| | | | | |
|:---|:---|:---|:---|:---|
| **Name** | **Capacity in** <br> **which**<br> **compensation** <br> **was received**<br> **(e.g. Chief Executive**<br> **Officer,** <br> **director, etc.)** |  | **Loan Servicing**<br> **Fee** <br> **($)** | **Total**<br> **compensation** <br> **($)**  |
| Iron Bridge Management Group, LLC | Manager  | 2025 | $3407661 | $3407661 |
|  |  | 2024 | $3880375 | $3880375 |

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The loan servicing fee relates to servicing investment loans and is equal to 2% per annum of the principal amount of each investment, payable monthly, provided that the loan servicing fee will be reduced by the amount of any Company Employee Expense for which the Manager is reimbursed by the Company. The Manager is solely responsible for its own operating costs, including the cost of its own personnel, office space and general overhead. The loan servicing fee for a particular month is paid to the Manager no later than the last day of the immediately succeeding month. During the third quarter of 2025, the Manager decreased its loan servicing free from 3% to 2% to increase the amount of profit distributions to investors. The Company's operating agreement allows the Manager to charge a loan servicing fee of "up to" 3%.

Mr. Stascausky does not receive any compensation for his role as Chief Executive Officer of the Company.

**Investment by Chief Executive Officer/Managing Director** 

As of December 31, 2025, Gerard Stascausky, the Managing Director of the Manager and the Company's Chief Executive Officer, owned approximately $10.1 million, or 14.2%, of the equity interests in the Company. As of December 31, 2025, Gerard Stascausky owned approximately $7.3 million Class A Units, $2.6 million Class B Units and $225,000 Class D Units. See also "*Security Ownership of Management and Certain Security Holders*" on page 39.

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**Fiduciary Duties of the Manager** 

Under Oregon law, a manager is accountable to a limited liability company's equity owners as a fiduciary, which means that a Manager is required to exercise good faith with respect to a company's affairs, and act in accordance with the manager's duty of care and loyalty.

A manager's duty of care is limited to refraining from engaging in grossly negligent or reckless conduct, intentional misconduct or a knowing violation of the law. As permitted under Oregon law, the Operating Agreement provides that no action or failure to act on the part of the Manager in connection with the management or conduct of the business and affairs of Manager and other activities of the Manager or its affiliates which involve a conflict of interest with the Company, shall constitute, per se, bad faith, gross negligence, intentional misconduct, a material breach of the Operating Agreement or a knowing violation of law.

A manager's duty of loyalty under Oregon law includes the duty to account to the limited liability company and hold for it any property, profit or benefit derived by the manager in the conduct and winding up of the limited liability company's business; to refrain from dealing with the limited liability company in a manner adverse to the limited liability company, subject to certain limitations, and to refrain from representing a person with an interest adverse to the limited liability company, in the conduct or winding up of the limited liability company's business; and to refrain from competing with the limited liability company in the conduct of the business of the limited liability company before the dissolution of the limited liability company. A manager does not violate their duties however merely because their conduct as a member furthers their own interest. A manager may also transact business with the limited liability company provided that the transaction is fair to the limited liability company, authorized by the operating agreement or authorized and ratified by a majority of the disinterested members.

As permitted under Oregon law, the Operating Agreement provides the Members acknowledge that the Manager and its affiliates are or may be in the future engaged in other businesses, including limited liability companies, corporations and partnerships doing business with the Company, and that the Members understand such participation may result in conflicts of interest with the business of the Company. The Members also acknowledge that they have entered into the Operating Agreement with full knowledge of such other business activities of the Manager and have consented to and approve such other activities. The Members understand and agree that each Manager and Member may engage in other enterprises and that neither the Manager nor the other Members shall be required to offer business opportunities to the Company and may take advantage of those opportunities for their own account or for the account of other entities with which the Members or Managers are associated.

As permitted by Oregon law, the Operating Agreement also established certain standards with respect to the Manager's conduct including that whenever in the Operating Agreement the Manager is permitted or required to make a decision (a) in its "sole and absolute discretion," "sole discretion," "discretion" or under a grant of similar authority or latitude, the Manager shall consider the interests of the Company and the Members and such other interests and factors (including its own interests) as it deems necessary or appropriate under the circumstances, or (b) in its "good faith" or under another express standard, the Manager shall act under such express standard and shall not be subject to any other or different standard imposed by the Operating Agreement or other applicable law.

**Indemnification and Exculpation** 

To the fullest extent not prohibited by law, the Manager will not be liable to the Company or its Equity Program investors for any act or omission performed or omitted by the Manager in good faith pursuant to the authority granted to it by the Operating Agreement, including the management or conduct of the business and affairs of the Company, the offer and sale of securities, the management of affiliates insofar as such business relates to the Company (including activities that may involve a conflict of interest) or the winding up of the business of the Company. Neither the Manager nor its affiliates are personally liable for the return of capital contributions of any Member.

The Company must indemnify the Manager and each agent of the Manager for any loss or damage arising out of its activities on behalf of the Company or in furtherance of the Company's interests, without relieving the Manager and its agents of liability for a breach of the Manager's fiduciary duties. A successful indemnification of the Manager or any litigation that may arise in connection with its indemnification could deplete the assets of the Company, thereby reducing funds available to pay the Units. Furthermore, if funds are not available from third parties, and the Manager determines in its sole discretion that cash flows from operations are insufficient to satisfy payment of the indemnification obligations of the Company and pay Preferred Returns, or that providing funds would otherwise not be in the best interests of the Company (for example, the Operating Agreement does not require the Manager to cause the Company to liquidate any investments before such time as the Manager determines it advisable), the Manager may require the Members to make further capital contributions to satisfy all or any portion of the indemnification obligations of the Company, whether such obligations arise before or after the last day of the term of the Company or before or after such Member's withdrawal from the Company. Notwithstanding the foregoing, (i) no Member shall be obligated to make additional capital contributions in an aggregate amount in excess of 10% of the aggregate payments of net cash flow from operations received by the Member from the Company within the last three years; (ii) no Member shall be obligated to make additional capital contributions after the third year following the redemption of all of their Units; and (iii) no amounts contributed by the Members shall be used in a manner that would result in a violation of any rules or regulations pertaining to "plan assets" under ERISA.

To the extent that the indemnification provisions permit indemnification for liabilities arising under the Securities Act, in the opinion of the SEC, such indemnification is contrary to public policy and therefore unenforceable.

**ITEM 4 SECURITY OWNERSHIP OF MANAGEMENT AND CERTAIN SECURITYHOLDERS**

The following table presents information regarding the Company's Equity Program investors as of December 31, 2025 by:

• our Manager;

• our Manager's Managing Director and Chief Executive Officer; and

• each equity owner known by us to beneficially hold 10% or more of the Company's equity interests.

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Beneficial ownership is generally determined under the rules of the SEC and generally includes voting or investment power with respect to securities. Unless otherwise noted, the address for each beneficial owner listed below is 9755 SW Barnes Road, Suite 420, Portland, OR 97225.

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Name** | **Number** <br> **of**<br> **Class A** <br> **Units**  | **Percent**<br> **of**<br> **Class <sup>(1)</sup>** | **Number of**<br> **Class B** <br> **Units** | **Percent**<br> **of**<br> **Class <sup>(2)</sup>** | **Number of**<br> **Class C** <br> **Units** | **Percent**<br> **Of**<br> **Class <sup>(3)</sup>** | **Number of Class D Units** | **Percent of Class<sup>(4)</sup>** |
| **Manager:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Iron Bridge Management Group, LLC | 0 | 0% | 0 | 0% | 0 | 0% | 0 | 0% |
| **Managing Director of Manager:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Gerard Stascausky | 7287931 | 96.1% | 2570297 | 11.2% | 0 | 0% | 225486 | 2.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TOTAL | 7287931 | 96.1% | 2570297 | 11.2% | 0 | 0% | 225486 | 2.0% |
| **Other holders of 10% or more of the Company's equity interests:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Brent L Newman Rev Trust DTD  | 0 | 0% | 1008297 | 4.4% | 3607541 | 12.3% | 0 | 0% |
| &nbsp;&nbsp;&nbsp;&nbsp; Howard Bubb | 0 | 0% | 2321805 | 10.1% | 2294712 | 7.8% | 0 | 0% |

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____________

(1) Percentages are based on 7,579,821 Class A Units of Equity Program interests outstanding as of December 31 2025.

(2) Percentages are based on 22,933,560 Class B Units of Equity Program interests outstanding as of December 31 2025.

(3) Percentages are based on 29,247,874 Class C Units of Equity Program interests outstanding as of December 31 2025.

(4) Percentages are based on 11,176,089 Class D Units of Equity Program interests outstanding as of December 31 2025.

At any meeting of Members, each Member has one vote for each Unit held by such Member. Unless a greater vote is required by the Oregon Limited Liability Company Act, as amended from time to time, or the Operating Agreement, any action approved by Members with more than one-half of the issued and outstanding Units of all Members is the act of the Members.

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**ITEM 5 INTEREST OF MANAGEMENT AND OTHERS IN CERTAIN TRANSACTIONS**

The Company has not engaged in, nor currently proposes to engage in, any transaction in which any of the Manager, any affiliates of the Manager (including Gerard Stascausky), any other person holding more than a 10% interest in the Company, or any immediate family member of such persons, had or is to have a direct or indirect material interest during the Company's last two completed fiscal years or the current fiscal year, except for the Manager's relationship to the Company as Manager, the beneficial ownership of Units of the Company by the Manager's Managing Director, and the exchange of Class A Units for Class B Units by Sarah Gragg Stascausky ("*Ms. S.G. Stascausky*"), a former Managing Director of the Manager. Effective March 15, 2024, Ms. S.G. Stascausky exchanged her Class A Units for Class B Units of the Company on a one-for-one basis, in part because Ms. S.G. Stascausky was no longer going to serve as a Managing Director of the Manager and Class A Units are generally reserved for employees of the Manager and their tax-advantaged accounts. With respect to the Manager's relationship to the Company as Manager, as discussed above under "*Management Fees*", one our largest expenses are management fees paid to the Manager. During the years ended December 31, 2025 and 2024, the Manager received $3,407,661 and $3,880,375 in fees, respectively.

**CONFLICTS OF INTEREST**

The following describes some of the important areas in which the interests of the Manager may conflict with those of the Company.

**Manager's Affiliation with Other Companies** 

The Manager's primary business activity during the life of the Company will be the management of the Company. However, the Manager may be affiliated with other investment entities and not manage the Company as its sole and exclusive business function. In the future, the Manager may act as a manager to other affiliated entities in similar capacities, potentially diluting the Manager's focus on the Company. The Manager may have conflicts of interest in allocating management time, services and functions between various existing entities and any future mortgage lending entities that it may organize.

The Manager and its affiliates and principals may be the owner or manager of other entities that have investment objectives that are similar to those of the Company, potentially creating a conflict of interest. The Operating Agreement expressly provides that neither the Manager nor any owner of the Manager will be obligated to present to the Company any particular investment opportunity that comes to its attention, even if such opportunity is of a character that might be suitable for purchasing by the Company.

The member of the Manager, Gerard Stascausky, invests in real estate for his own accounts, and expects to continue to invest in real estate for his own accounts, including investment in other business ventures, public or private limited partnerships or limited liability companies, and neither the Company or any Equity Program investor, or is entitled to an interest therein.

**Conflict with Related Programs** 

The Company will not loan money to any entity in which the Manager has a direct financial interest. However, the Manager and its affiliates may cause the Company to join with other entities organized by the Manager for similar or related purposes as partners, joint ventures or co-owners under some form of ownership in certain loans, or in the ownership of repossessed real property. Such arrangements would be formed because the Manager believed such arrangement is in the best interest of the Company. For example, bank loan covenants applied to the Company's portfolio of loans may allow the Manager to form a separate entity to purchase from the Company any loan that is delinquent, increasing the borrowing capacity available through Bank Borrowings. Such covenants are designed to protect investor interests; however, the interests of the Company and those of such other entities may conflict, and the Manager controlling or influencing all such entities may not be able to resolve such conflicts in a manner that serves the best interests of the Company. As of and prior to the date of this Form 1-K, no such conflicts existed.

**Lack of Independent Legal Representation** 

The Company has not been represented by independent legal counsel to date. The use of the Manager's counsel in the preparation of this document and the organization of the Company may result in a lack of independent review. Investors should consult their own legal counsel with respect to an investment in Units.

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**Fees Payable to the Manager** 

The Manager will act as loan servicer for the compensation described above under "*Management Fees*" on page 38. Loan servicing firms not affiliated with the Manager might provide comparable services on terms more favorable to the Company.

The Manager has reserved the right to retain the services of other firms, in addition to, or in lieu of, the Manager, to perform the loan origination, loan servicing and other activities in connection with the Company's loan portfolio, when such services are deemed by the Manager to be in the best interest of the Company. Any such other firms may also be affiliated with the Manager. For example, it may become possible for the Manager or an affiliated company of the Manager to provide hazard and liability coverage to Portfolio Borrowers on better terms than those available to Portfolio Borrowers purchasing similar insurance coverage individually. As of and prior to the date of this Form 1-K, no such services were being performed by Manager affiliated companies.

The Company has also issued to employees of the Manager Class A Units of the Company. The terms of the Class A Units were not determined through arms-length negotiation. The structure of the Class A Units may provide an incentive to the Manager to seek out higher risk opportunities to earn returns greater than the Preferred Return.

**ITEM 6 OTHER INFORMATION**

**N/A**

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**ITEM 7 FINANCIAL STATEMENTS**

**IRON BRIDGE MORTGAGE FUND, LLC**

**AND SUBSIDIARIES**

Consolidated Financial Statements

For the Years Ended December 31, 2025 and 2024

With Independent Auditor's Report

![](iron_1kimg1.jpg)

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**IRON BRIDGE MORTGAGE FUND, LLC AND SUBSIDIARIES**

**DECEMBER 31, 2025 AND 2024**

**CONTENTS**

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| **[INDEPENDENT AUDITOR'S REPORT](#repo)** | F-1-F-2 |
| **CONSOLIDATED FINANCIAL STATEMENTS:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; [Balance Sheets](#bs) | F-3 |
| &nbsp;&nbsp;&nbsp;&nbsp; [Statements of Income](#soo) | F-4 |
| &nbsp;&nbsp;&nbsp;&nbsp; [Statements of Changes in Members' Equity](#eqt) | F-5 |
| &nbsp;&nbsp;&nbsp;&nbsp; [Statements of Cash Flows](#cf) | F-6-F-7 |
| &nbsp;&nbsp;&nbsp;&nbsp; [Notes to Consolidated Financial Statements](#note) | F-8-F-19 |

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| ![](iron_1kimg2.jpg) | Main Office<br> 1211 SW 5<sup>th</sup> Ave, Suite 1000<br> Portland, OR 97204<br> 503 221 0336  | Washington Office<br> 805 Broadway, Suite 405<br> Vancouver, WA 98660<br> 360 397 0097 |

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**INDEPENDENT AUDITOR'S REPORT**

Board of Directors

Iron Bridge Mortgage Fund, LLC

***Opinion***

We have audited the consolidated financial statements of Iron Bridge Mortgage Fund, LLC and Subsidiaries ("the Fund"), which comprise the consolidated balance sheets as of December 31, 2025 and 2024, and the related consolidated statements of income, changes in members' equity, and cash flows for the years then ended, and the related notes to the consolidated financial statements.

In our opinion, the accompanying consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of the Fund as of December 31, 2025 and 2024, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.

***Basis for Opinion***

We conducted our audits in accordance with auditing standards generally accepted in the United States of America ("GAAS"). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are required to be independent of the Fund and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

***Responsibilities of Management for the Consolidated Financial Statements***

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Fund's ability to continue as a going concern within one year after the date that the consolidated financial statements are issued or available to be issued.

***Auditor's Responsibilities for the Audit of the Consolidated Financial Statements***

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the consolidated financial statements.

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![](iron_1kimg3.jpg)

In performing an audit in accordance with GAAS, we:

· Exercise professional judgment and maintain professional skepticism throughout the audit.

· Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements.

· Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control. Accordingly, no such opinion is expressed.

· Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the consolidated financial statements.

· Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Fund's ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

![](iron_1kimg4.jpg)

Portland, OR

March 19, 2026

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**IRON BRIDGE MORTGAGE FUND, LLC AND SUBSIDIARIES**

**CONSOLIDATED BALANCE SHEETS**

**DECEMBER 31, 2025 AND 2024**

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| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| **ASSETS** |  |  |
| Cash and cash equivalents | $273571 | $10000 |
| Mortgage interest receivable | 1154259 | 1049181 |
| Mortgage loans receivable, net | 129019781 | 123449068 |
| Mortgage loan receivable held for sale, net | 980100 |  |
| Real estate held for sale, net | 1745103 | 2514438 |
| Loan servicing fee receivable | 4821 |  |
| Other assets | 83242 | 22609 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total assets | $133260877 | $127045296 |
| **LIABILITIES AND MEMBERS' EQUITY** |  |  |
| Liabilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Accounts payable and other accrued liabilities | $110369 | $158397 |
| &nbsp;&nbsp;&nbsp;&nbsp; Manager servicing fees payable | 236224 | 324922 |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest payable | 324288 | 165889 |
| &nbsp;&nbsp;&nbsp;&nbsp; Income taxes payable | 24718 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Line of credit, net | 60754755 | 58935982 |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest reserve holdbacks | 629811 | 1150084 |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest reserve holdbacks, on sold loans | 28759 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Due to whole-loan buyer | 199491 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities | 62308415 | 60735274 |
| Members' equity | 70952462 | 66310022 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities and members' equity | $133260877 | $127045296 |

---

The accompanying notes are an integral part of these consolidated financial statements.

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**IRON BRIDGE MORTGAGE FUND, LLC AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF INCOME**

**FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024**

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| **REVENUES** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Mortgage interest income | $16152647 | $14871066 |
| &nbsp;&nbsp;&nbsp;&nbsp; Loan servicing fee income, on sold loans | 28096 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Other income | 180538 | 94968 |
|  | 16361281 | 14966034 |
| **OPERATING EXPENSES** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest expense | 4448230 | 4329181 |
| &nbsp;&nbsp;&nbsp;&nbsp; Manager servicing fees | 3407661 | 3880375 |
| &nbsp;&nbsp;&nbsp;&nbsp; Provision for losses on loans and real estate held for sale | 425008 | 184267 |
| &nbsp;&nbsp;&nbsp;&nbsp; Professional fees | 475178 | 675849 |
| &nbsp;&nbsp;&nbsp;&nbsp; Real estate holding costs | 14548 | 22945 |
| &nbsp;&nbsp;&nbsp;&nbsp; Other administrative expenses | 440359 | 232087 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total operating expenses | 9210984 | 9324704 |
| **INCOME BEFORE INCOME TAX EXPENSE** | 7150297 | 5641330 |
| **INCOME TAX EXPENSE** | 24718 | - |
| **NET INCOME** | $7125579 | $5641330 |

---

The accompanying notes are an integral part of these consolidated financial statements.

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**IRON BRIDGE MORTGAGE FUND, LLC AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF CHANGES IN MEMBERS' EQUITY**

**FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Class A**  | **Class B**  | **Class C**  | **Class D**  | **Undistributed Earnings** | **Total**  |
| **BALANCE, JANUARY 1, 2024** | $8030353 | $20302928 | $28743255 | $19548516 | $- | $76625052 |
| Members' contributions | 1413857 | 5287692 | 3788120 | 2238833 |  | 12728502 |
| Members' withdrawals | (1330730) | (10041576) | (9032688) | (8279868) |  | (28684862) |
| Transfers between member classes | (3988359) | 2932580 | 1903938 | (848159) |  |  |
| Net income | 1129730 | 1972845 | 1706854 | 831901 | - | 5641330 |
| **BALANCE, DECEMBER 31, 2024** | 5254851 | 20454469 | 27109479 | 13491223 |  | 66310022 |
| Members' contributions | 2847970 | 10673671 | 5863342 | 2860725 |  | 22245708 |
| Members' withdrawals | (2580959) | (9306709) | (7566801) | (5274378) |  | (24728847) |
| Transfers between member classes | (478929) | (1035168) | 2041803 | (527706) |  |  |
| Net income | 2536890 | 2147293 | 1800053 | 626228 | 15115 | 7125579 |
| **BALANCE, DECEMBER 31, 2025** | $7579823 | $22933556 | $29247876 | $11176092 | $15115 | $70952462 |

---

The accompanying notes are an integral part of these consolidated financial statements.

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**IRON BRIDGE MORTGAGE FUND, LLC AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

**FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024**

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| **CASH FLOWS FROM OPERATING ACTIVITIES** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net income | $7125579 | $5641330 |
| &nbsp;&nbsp;&nbsp;&nbsp; Adjustments to reconcile net income to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for losses on loans and real estate held for sale | 425008 | 184267 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of deferred loan origination fees | (2510657) | (2255541) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of line of credit origination fees | 150792 | 166609 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Change in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Origination of mortgage loans held for sale | (10503242) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from sale of mortgage loans held for sale | 9637300 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mortgage interest receivable | (105078) | (169631) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loan servicing fees receivable | (4821) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | (60633) | 143052 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable and other accrued liabilities | (48028) | 93467 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Manager servicing fees payable | (88698) | (7208) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest payable | 158399 | (132065) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income taxes payable | 24718 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest reserve holdbacks, on sold loans | 28759 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due to whole-loan buyer | 199491 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by operating activities | 4428889 | 3664280 |
| **CASH FLOWS FROM INVESTING ACTIVITIES** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Loans funded | (205347238) | (194954366) |
| &nbsp;&nbsp;&nbsp;&nbsp; Principal collected on loans | 201624578 | 199506189 |
| &nbsp;&nbsp;&nbsp;&nbsp; Improvement costs on real estate held for sale | (66265) | (93657) |
| &nbsp;&nbsp;&nbsp;&nbsp; Proceeds from sales of real estate held for sale | 438765 | 732897 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash (used in) provided by investing activities | (3350160) | 5191063 |
| **CASH FLOWS FROM FINANCING ACTIVITIES** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Additional loan fees incurred | (150000) | (158490) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net borrowings on line of credit | 1817981 | 6958547 |
| &nbsp;&nbsp;&nbsp;&nbsp; Members' contributions | 15135244 | 7087172 |
| &nbsp;&nbsp;&nbsp;&nbsp; Members' withdrawals | (17618383) | (23043532) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash used in financing activities | (815158) | (9156303) |
| Net increase (decrease) in cash and cash equivalents | 263571 | (300960) |
| Cash and cash equivalents, at beginning of year | 10000 | 310960 |
| Cash and cash equivalents, at end of year | $273571 | $10000 |

---

The accompanying notes are an integral part of these consolidated financial statements.

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**IRON BRIDGE MORTGAGE FUND, LLC AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)**

**FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024**

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| **SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash paid for interest | $4139039 | $4294638 |
| **SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING TRANSACTIONS** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Mortgage loan receivable converted to real estate held for sale | $- | $1071040 |
| &nbsp;&nbsp;&nbsp;&nbsp; Mortgage interest receivable converted to real estate held for sale  | $- | $82140 |
| &nbsp;&nbsp;&nbsp;&nbsp; Capitalized loan origination fees | $2385727 | $2169604 |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest reserve holdbacks | $520273 | $112139 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributed earnings reinvested as members' equity | $7110464 | $5641330 |

---

The accompanying notes are an integral part of these consolidated financial statements.

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**IRON BRIDGE MORTGAGE FUND, LLC AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**DECEMBER 31, 2025 AND 2024**

**1. ORGANIZATION**

Iron Bridge Mortgage Fund, LLC ("IBMF") is an Oregon limited liability company and is the sole member of Iron Bridge Mortgage Fund 2 LLC ("IBMF 2") and Iron Bridge Realty LLC ("IBR") (together, the "Fund").

IBMF was organized to engage in business as a mortgage lender for the purpose of making and arranging various types of loans to the general public and businesses, acquiring existing loans and selling loans, all of which are or will be wholly secured by real or personal property throughout the United States. IBMF is managed by Iron Bridge Management Group, LLC, an Oregon limited liability company (the "Manager"). IBMF receives certain operating and administrative services from the Manager, some of which are not reimbursed to the Manager. IBMF's financial position and results of operations would likely be different absent this relationship with the Manager.

IBMF 2 is a wholly owned subsidiary of IBMF and was organized in September 2024 to facilitate the sale and servicing of mortgage loans. IBMF 2 originates mortgage loans to both the general public and businesses. These loans are or will be wholly secured by real or personal property throughout the United States. Following origination, the loans are sold to a whole-loan buyer pursuant to the established Master Loan Purchase Agreement ("MLPA"). Upon the sale of the loans, IBMF 2's role transitions from loan origination to the servicing of the underlying mortgage assets. Servicing activities include the collection and remittance of principal and interest payments, escrow administration, borrower communications, and other duties required under the Servicing Agreement. There is no gain or loss recorded on sale of loans by IBMF 2. IBMF 2 began operations in 2025.

IBR is a wholly owned subsidiary of IBMF and was formed to hold specific real estate owned ("REO") assets in order to provide enhanced liability protection for the consolidated group. IBR did not engage in any activities during 2024 or 2025.

<u>Term of the Fund</u>

The Fund will continue in perpetuity, at the sole discretion of the Manager, unless dissolved under provisions of the operating agreement at an earlier date.

**2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

<u>Basis of presentation</u>

The consolidated financial statements are presented on the accrual basis and include the accounts of IBMF and its wholly owned subsidiaries, IBMF 2 and IBR. All intercompany transactions and balances have been eliminated in consolidation.

IBMF2 is accounted for in accordance with ASC 948, Financial Services- Mortgage Banking.

<u>Management estimates and related risks</u>

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions about the reported amounts of assets and liabilities, and disclosures of contingent assets and liabilities, at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reported period. Such estimates relate principally to the determination of the allowance for loan losses and fair value of real estate owned. Although these estimates reflect management's best estimates, it is at least reasonably possible that a material change to these estimates could occur.

The fair value of real estate, in general, is impacted by current real estate and financial market conditions. Should these markets experience significant declines, the resulting collateral values of the Fund's loans will likely be negatively impacted. The impact to such values could be significant and as a result, the Fund's actual loan losses and proceeds from the sales of real estate held could differ significantly from management's current estimates.

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<u>Cash and cash equivalents</u>

The Fund considers all highly liquid financial instruments with maturities of three months or less at the time of purchase to be cash equivalents. Cash on deposit occasionally exceeds federally insured limits. The Fund believes that it mitigates this risk by maintaining deposits with major financial institutions.

<u>Mortgage loans receivable</u>

Mortgage loans, which the Fund has the intent and ability to hold to maturity, generally are stated at their outstanding unpaid principal balance with interest thereon being accrued as earned. If the probable ultimate recovery of the carrying amount of a loan, with due consideration for the fair value of collateral, is less than amounts due according to the contractual terms of the loan agreement and the shortfall in the amounts due are not insignificant, the carrying amount of the investment shall be reduced to the present value of estimated future cash flows discounted at the loan's effective interest rate. If a loan is collateral dependent, it is valued at the estimated fair value of the related collateral.

Interest is accrued daily based on the principal of the loans. If events and or changes in circumstances cause management to have serious doubts about the further collectability of the contractual payments, a loan may be categorized as impaired, and interest is no longer accrued. Any subsequent payments on impaired loans are applied to reduce the outstanding loan balances including accrued interest and advances.

<u>Mortgage loan receivable, held for sale</u>

Mortgage loans which the Fund intends to sell, rather than hold for investment, are classified as held for sale upon origination. Mortgage loans held for sale are stated at the lower of their cost basis or fair value, as determined at the balance sheet date. Amortized cost basis includes the unpaid principal balance adjusted for net deferred origination fees and costs. If the fair value of a loan is less than its amortized cost basis, the Fund records a valuation allowance with the change recognized in current period earnings. Subsequent increases in fair value are recognized only to the extent of previously recorded valuation allowances.

<u>Allowance for loan losses</u>

Mortgage loans receivable are stated at their estimated collectible amounts and comprise amounts billed and currently due from borrowers. Mortgage loan receivable, held for sale, is stated at the lower of cost basis or fair value. The Fund extends credit to borrowers in the normal course of business. Collections from borrowers are continuously monitored and an allowance for loan losses is maintained based on historical experience adjusted for current conditions and reasonable forecasts, taking into account geographical and industry-specific economic factors. The Fund also considers any specific customer collection issues. Since the Fund's loans within IBMF and IBMF 2 are substantially similar in that they are collateralized by real estate and subject to the same funding requirements, the Fund evaluates its allowance for credit losses as one portfolio segment. At origination, the Fund evaluates credit risk based on a variety of credit quality factors including prior payment experience, customer financial information, credit ratings, probabilities of default, industry trends and other internal metrics. On a continuing basis, data for each major customer is regularly reviewed based on past-due status to evaluate the adequacy of the allowance for credit losses; actual write-offs are charged against the allowance. Because all loans are considered short-term in nature (12 months or less), collateral values are generally evaluated only at inception of the loan. Loans are considered non-performing or non-accruing after being non-current for 30 days. Non-performing and non-accruing loans totaled approximately $1,231,000 and $974,000 at December 31, 2025 and 2024, respectively, and were collateralized by residential real estate.

When accrued interest is reversed or charged off in a timely manner FASB ASC 326, Financial Instruments – Credit Losses, provides a practical expedient to exclude accrued interest from the allowance for credit loss measurement. Management considers nonaccrual and charge-off policies to be timely for all loans and considers the length of time before nonaccrual/charge-off and the use of appropriate other triggering events for nonaccrual and charge-offs in making this determination.

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<u>Impairment of long-lived assets</u>

The Fund continually monitors events and changes in circumstances that could indicate carrying amounts of long-lived assets may not be recoverable. When such events or changes in circumstances occur, the Fund assesses the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the total future cash flows is less than the carrying amount of those assets, the Fund records an impairment charge based on the excess of the carrying amount over the fair value, less selling costs, of the asset.

<u>Real estate held for sale</u>

Real estate acquired through or in lieu of loan foreclosure that is to be held for any purpose other than use in operations is initially recorded at fair value, less estimated selling cost at the date of foreclosure. Any write-downs based on the asset's fair value at the date of acquisition are charged to the allowance for loan losses. After foreclosure, real estate held for sale is carried at the lower of the new cost basis or fair value less estimated costs to sell. If the future undiscounted cash flows of real estate held for sale exceed the carrying value, the asset value is recaptured to the estimated fair value, not to exceed the original basis in the property after reversion. Costs of real estate improvements are capitalized, whereas costs relating to holding real estate are expensed. The portion of interest costs relating to development of real estate is capitalized. Valuations are periodically performed by management, and any subsequent write-downs are recorded through a valuation allowance. At December 31, 2025 and 2024, the provision for losses on real estate held for sale totaled $423,664 and $150,000, respectively, and is included in real estate held for sale, net in the accompanying consolidated balance sheets.

<u>Deferred loan origination fees</u>

IBMF capitalizes loan origination fees and recognizes the fees as an adjustment to the yield on the related loan. Deferred loan origination fees are amortized to income over the life of the loan under the effective interest method. Deferred loan origination fees of $668,570 at December 31, 2025 and $679,342 at December 31, 2024 have been included in mortgage loans receivable, net, on the accompanying consolidated balance sheets. Deferred loan origination fees of $2,396,499 and $2,255,541 were recorded to interest income during the years ended December 31, 2025 and 2024, respectively.

IBMF 2 capitalizes loan origination fees and recognizes the fees upon sale of the loan. Deferred loan origination fees of $9,900 have been included in mortgage loan receivable – held for sale, net at December 31, 2025, on the accompanying consolidated balance sheets. Deferred loan origination fees of $114,158 were recorded to interest income during the year ended December 31, 2025.

<u>Interest Reserve Holdbacks</u>

Upon issuance, some IBMF loans have interest reserve holdbacks which are used to fund the borrower's interest payments over the term of the loan. Interest reserve holdbacks reduce the total amount of funds available for the borrower to draw and are recognized as interest income each month on a straight-line basis. Interest reserve holdbacks of $629,811 and $1,150,084 at December 31, 2025 and 2024, respectively, are included in interest reserve holdbacks, on the accompanying consolidated balance sheets.

IBMF 2 maintains balances for interest reserve holdbacks related to its loan servicing activities. Interest reserve holdbacks represent amounts withheld from loan funding at origination to cover future interest payments on behalf of the borrower. In accordance with the Servicing Agreement, amounts are deducted from the interest reserve holdbacks and applied to the related loan's required interest payments as they become due. Such amounts are payable to the whole-loan buyer. Interest reserve holdbacks related to IBMF 2 totaled $28,759 at December 31, 2025 and are included in interest reserve holdbacks, on sold loans at December 31, 2025 on the accompanying consolidated balance sheets.

<u>Sales of mortgage loans and servicing activities</u>

IBMF 2 sells the mortgage loans it originates to a third-party whole-loan buyer pursuant to the MLPA. The transfer of mortgage loans meets the criteria for sale accounting under ASC 860, Transfers and Servicing, and are therefore accounted for as true sales. Upon transfer, the Fund derecognizes the mortgage loans from its consolidated balance sheet. Mortgage loans are generally sold at face value and therefore no gain or loss has been recognized in the consolidated financial statements.

Following the sale of the loans, IBMF 2 provides servicing activities in exchange for a fee under the Servicing Agreement with the purchaser. The terms of the agreement do not meet the criteria for recognition of either a servicing asset or a servicing liability under ASC 860. Accordingly, no servicing rights or obligations are recorded. Servicing fee revenue is recognized as earned over the period in which servicing activities are performed. IBMF 2 recorded servicing fee income of $28,096 for the year ended December 31, 2025.

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<u>Line of credit origination fees</u>

The Fund has capitalized the related costs incurred in connection with its borrowings under the line of credit. These costs are being amortized to interest expense using the straight-line method through maturity of the line of credit. The prepaid loan fees related to the line of credit are presented in the consolidated balance sheet as a direct deduction from the carrying amount of the line of credit.

<u>Due to whole-loan buyer</u>

Amounts due to whole-loan buyer represent borrower payoff proceeds received by IBMF 2, in its capacity as the servicer, that have not yet been remitted to the whole-loan buyer under the terms of the Servicing Agreement. These amounts are short-term in nature and are remitted to the whole-loan buyer in accordance with the Servicing Agreement.

<u>Income taxes</u>

During 2022, IBMF elected to be treated as a corporation taxed as real estate investment trust ("REIT") for U.S. federal income tax purposes, commencing with its taxable year ended December 31, 2022. Accordingly, IBMF is not required to pay U.S. federal income taxes on its income as it receives a dividend paid deduction for distributions to members that generally offsets its income and gains. IBMF is required to be in compliance with certain REIT rules as defined by the Internal Revenue Service Code. As of December 31, 2025 and 2024, IBMF was in compliance with the REIT rules.

IBMF 2 is a taxable REIT subsidiary ("TRS") and is therefore subject to federal and applicable state corporate income taxes on its taxable income. As a TRS, IBMF 2 is not subject to the distribution requirements or income-based limitations applicable to the Fund's REIT operations, and it accounts for income taxes in accordance with ASC 740, Income Taxes.

The Fund has evaluated its current tax positions and has concluded that as of December 31, 2025, it does not have any significant uncertain tax positions for which a reserve would be necessary.

**3. FUND PROVISIONS**

The rights, duties and powers of the members of the Fund are governed by the operating agreement. The following description of Fund's operating agreement provides only general information. Members should refer to the Fund's operating agreement and offering circular for a more complete description of the provisions.

The Manager is in complete control of the Fund's business, subject to the voting rights of the members on specified matters. The Manager acting alone has the power and authority to act for and bind the Fund.

Members may remove the Manager for cause only, with written approval of holders of at least 75% of the outstanding membership interests, excluding the membership interests held by the Manager. Cause means: (i) the Manager willfully or intentionally violated, or recklessly disregarded, the Manager's duties to the Company; or (ii) the Manager committed an act involving fraud, bad faith, or gross negligence in its duties and responsibilities to the Company.

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<u>Capitalization</u>

The Fund's operating agreement provides for four classes of equity membership interests consisting of Class A, Class B, Class C and Class D Units. The Class A Units were issued to employees of the Manager and/or their tax-advantaged accounts. The provisions of the classes of units are described below.

<u>Profits and losses</u>

Profits and losses accrued during any accounting period shall be allocated among the members in accordance with their respective membership interests maintained throughout that accounting period.

<u>Election to receive distributions</u>

To the extent the Manager determines funds are available for distribution, members are entitled, on a non-compounding basis, payable monthly in arrears, to 9% (Class B Equity), 6% (Class C Equity), or 5% (Class D Equity) per annum non-guaranteed priority return ("Priority Return") on their invested capital.

Once all accrued Priority Return distributions have been made, remaining net income from operations generally shall be distributed 10% to the Fund's members and 90% to Class A Equity.

<u>Distributions from sale or refinance</u>

Upon sale or refinance, net cash flow will be distributed to members at the discretion of the Manager based on the terms and provisions of the operating agreement.

<u>Reinvestment</u>

Members will be treated as if they have elected to compound their proportionate share of the Fund's monthly earnings, except where they provide written notice to the Company that they elect to receive all or a portion of their distributions in cash.

<u>Liquidity, capital withdrawals and early withdrawals</u>

There is no public market for units of the Fund, and none is expected to develop in the foreseeable future. There are substantial restrictions on transferability of membership interests. Any transferee must be a person that would have been qualified to purchase a member unit in the offering, and a transferee may not become a substituted member without the consent of the Manager.

A member may request the redemption of its investment and receive the lesser of the net asset value per unit as of the last day of the previous month or then current offering price, provided that the member requests a full withdrawal of all membership interest if their capital balance is less than 50,000 units. The Fund will use its best efforts to honor redemption requests in 60 days subject to, among other things, the amount of redemption requests received by the Fund, as well as compliance with regulatory and other limitations described in the Company's operating agreement. Furthermore, redemptions are limited to 5% of the Fund's net asset value each quarter, subject to limited increase in certain circumstances, but not to exceed 20% in any 12-month period.

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**4. MORTGAGE LOANS RECEIVABLE, NET**

Mortgage loans receivable, net, consisted of the following at December 31:

---

| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
| Outstanding mortgage loans receivable | $131700026 | $126111912 |
| Unamortized deferred loan origination fees | (668570) | (679342) |
| Allowance for loan losses | (2011675) | (1983502) |
| Mortgage loans receivable, net | $129019781 | $123449068 |

---

**5. MORTGAGE LOAN RECEIVABLE HELD FOR SALE, NET**

Mortgage loans receivable held for sale, net, consisted of the following at December 31:

---

| | |
|:---|:---|
|  | 2025 |
| Outstanding mortgage loans receivable | $990000 |
| Unamortized deferred loan origination fees | (9900) |
| Mortgage loans receivable held for sale, net | $980100 |

---

In January 2026, the mortgage loan receivable held for sale was sold to the whole-loan-buyer.

**6. ALLOWANCE FOR LOAN LOSSES**

Activity in the allowance for loan losses was as follows for the years ended December 31:

---

| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
| Beginning balance | $1983502 | $1966269 |
| Provision for loan losses | 28173 | 34267 |
| Write-offs | - | (17034) |
| Ending balance | $2011675 | $1983502 |

---

Allocation of the allowance for loan losses by collateral type consisted of the following (allocation of allowance is not an indication of expected future use) as of December 31:

---

| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
| Single family residential (1 - 4 units) | $1973747 | $1844264 |
| Land/Construction | 16814 | 139238 |
| Multi-family residential (5 or more units) | 21144 | - |
| Total | $2011675 | $1983502 |

---

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**7. LINE OF CREDIT, NET**

IBMF has available a line of credit of up to $80,000,000 with Umpqua Bank ("the Bank"), payable in monthly interest only payments through May 5, 2027, at which time all outstanding principal and interest is due. The line of credit includes an option to extend the maturity date by six months if certain provisions are met. Amounts borrowed under the line of credit bear interest at the greater of 4.00% or the Secured Overnight Borrowing Rate ("SOFR") plus 2.80%, not to exceed the temporary ceiling in effect from January 5, 2025 to January 1, 2026 of the greater of 7.00% or SOFR plus 2.55%. The interest rate at December 31, 2025 and 2024 was 7.00%. The line of credit is subject to a borrowing base and is secured by substantially all of IBMF's assets.

The line of credit agreement contains certain covenants and restrictions. IBMF was in compliance with these covenants and restrictions at December 31, 2025 and 2024.

The line of credit agreement includes a sub-loan agreement that permits IBMF to provide IBMF 2 with access to up to $10,000,000 of IBMF's line of credit. The sub-loan is subject to the same overarching terms, covenants, and conditions of the primary line of credit described above.

Line of credit, net, consisted of the following at December 31:

---

| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
| Line of credit | $60805590 | $58987609 |
| Line of credit unamortized origination fees | (50835) | (51627) |
| Line of credit, net | $60754755 | $58935982 |

---

Debt issuance costs related to the line of credit renewal are presented net of the line of credit in accordance with Accounting Standards Update No. 2015-03, Interest – Imputation of Interest (Subtopic 835-30) – Simplifying the Presentation of Debt Issuance Costs, and totaled $150,000 and $158,490 at December 31, 2025 and 2024, respectively. Amortization expense related to debt issuance costs totaled $150,792 and $166,609 for the years ended December 31, 2025 and 2024, respectively and is included in interest expense on the accompanying consolidated statements of income.

**8. RELATED PARTY TRANSACTIONS**

<u>Manager Servicing fees</u>

Under the terms of the third amended and restated operating agreement, servicing fees of 0.25% (3% annually) of the principal amount of each IBMF loan are payable monthly to the Manager. Effective July 2025, the Fund executed a limited waiver of fees, whereby under the terms of the waiver, the Manager may waive its right to the full servicing fee. In August 2025, the servicing fee was reduced to 0.17% (2% annually). Servicing fees earned by the Manager amounted to $3,407,661 for the year ended December 31, 2025, and $3,880,375 for the year ended December 31, 2024. Servicing fees payable to the Manager amounted to $236,224 as of December 31, 2025, and $324,922 as of December 31, 2024.

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<u>Operating expenses</u>

For the years ended December 31, 2025 and 2024, the Manager elected to absorb all operating expenses of the Fund besides those which have been recorded in the Fund's consolidated statements of income and changes in members' equity. These operating expenses were de minimis.

<u>Other transactions</u>

At December 31, 2025, the member of the Manager was also a member of the Fund. During 2025, the member of the Manager incurred contributions and distributions to and from the Fund totaling $2,169,158 and $1,678,468, respectively.

During 2024, one member of the Manager redeemed their interest in the Manager, leaving one remaining member in the Manager. During 2024, the member of the Manager incurred contributions and distributions to and from the Fund totaling $1,573,417 and $3,153,760, respectively.

**9. LOAN CONCENTRATIONS AND CHARACTERISTICS**

The loans are secured by recorded deeds of trust or mortgages. At December 31, 2025, there were 269 secured loans outstanding with 161 borrowers with the following characteristics:

---

| | |
|:---|:---|
| Total secured loans outstanding | $131700026 |
| Average secured loan outstanding | $489591 |
| Average secured loan as percent of total secured loans | 0.37% |
| Average secured loan as percent of members' equity | 0.69% |
| Largest secured loan outstanding | $1999351 |
| Largest secured loan as percent of total secured loans | 1.52% |
| Largest secured loan as percent of members' equity | 2.82% |
| Number of secured loans over 90 days past due, still accruing interest | 1 |
| Approximate investment in secured loans over 90 days past due, still accruing interest | $305609 |
| Number of secured loans in foreclosure | 1 |
| Approximate principal of secured loans in foreclosure | $543319 |
| Number of secured loans on non-accrual status | 1 |
| Approximate investment in secured loans on non-accrual status | $543319 |
| Number of secured loans considered to be impaired |  |
| Approximate investment in secured loans considered to be impaired | $- |
| Average investment in secured loans considered to be impaired | $- |
| Number of secured loans over 90 days past maturity | 2 |
| Approximate principal of secured loans over 90 days past maturity | $848928 |
| Number of states where security is located | 12 |

---

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At December 31, 2025, all of the Fund's loans are secured by recorded deeds of trust or mortgages in a first lien position on real property located throughout the United States. The various states within the United States in which secured property is located are as follows at December 31, 2025:

---

| | | |
|:---|:---|:---|
| State | Loan Balance | Percentage |
| California | $93523607 | 71.00% |
| Oregon | 13446460 | 10.00% |
| Other \*\* | 24729959 | 19.00% |
| Totals | $131700026 | 100.00% |

---

\*\* None of the states included in the "Other" categories above include loan concentrations greater than 10%.

Loans by type of property

---

| | |
|:---|:---|
| Single family residential (1 – 4 units) | $130090648 |
| Land/Construction | 225136 |
| Multi-family residential (5 or more units) | 1384242 |
|  | $131700026 |

---

The schedule below reflects the balances of the Fund's secured loans with regards to the aging of interest payments due at December 31, 2025:

---

| | |
|:---|:---|
| Current (0 to 30 days) | $130468628 |
| 31 to 90 days | 382470 |
| 91 days and greater | 848928 |
|  | $131700026 |

---

At December 31, 2025, all of the Fund's loans carry a term of six to 12 months; therefore, the entire current loan balance of $130,468,628 was scheduled to mature in 2026. The scheduled maturities for 2026 include four loans totaling approximately $2,592,675 with maturity dates of December 31, 2025.

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At December 31, 2024, there were 244 secured loans outstanding with 128 borrowers with the following characteristics:

---

| | |
|:---|:---|
| Total secured loans outstanding | $126111912 |
| Average secured loan outstanding | $516582 |
| Average secured loan as percent of total secured loans | 0.41% |
| Average secured loan as percent of members' equity | 0.78% |
| Largest secured loan outstanding | $2430735 |
| Largest secured loan as percent of total secured loans | 1.93% |
| Largest secured loan as percent of members' equity | 3.67% |
| Number of secured loans over 90 days past due, still accruing interest |  |
| Approximate investment in secured loans over 90 days past due, still accruing interest | $- |
| Number of secured loans in foreclosure |  |
| Approximate principal of secured loans in foreclosure | $- |
| Number of secured loans on non-accrual status | 1 |
| Approximate investment in secured loans on non-accrual status | $127402 |
| Number of secured loans considered to be impaired |  |
| Approximate investment in secured loans considered to be impaired | $- |
| Average investment in secured loans considered to be impaired | $- |
| Number of secured loans over 90 days past maturity | 1 |
| Approximate principal of secured loans over 90 days past maturity | $127402 |
| Number of states where security is located | 13 |

---

At December 31, 2024, all of the Fund's loans are secured by recorded deeds of trust or mortgages in a first lien position on real property located throughout the United States. The various states within the United States in which secured property is located are as follows at December 31, 2024:

---

| | | |
|:---|:---|:---|
| State | Loan Balance | Percentage |
| California | $90275697 | 72.00% |
| Other \*\* | 35836215 | 28.00% |
| Totals | $126111912 | 100.00% |

---

\*\* None of the states included in the "Other" categories above include loan concentrations greater than 10%.

Loans by type of property

---

| | |
|:---|:---|
| Single family residential (1 – 4 units) | $117259073 |
| Land/Construction | 8852839 |
| Multi-family residential (5 or more units) | - |
|  | $126111912 |

---

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The schedule below reflects the balances of the Fund's secured loans with regards to the aging of interest payments due at December 31, 2024:

---

| | |
|:---|:---|
| Current (0 to 30 days) | $125137885 |
| 31 to 90 days | 846625 |
| 91 days and greater | 127402 |
|  | $126111912 |

---

At December 31, 2024, all of the Fund's loans carry a term of six to 12 months; therefore, the entire current loan balance of $125,137,885 was scheduled to mature in 2025. The scheduled maturities for 2025 include four loans totaling approximately $2,759,496 with maturity dates of December 31, 2024.

It is the Fund's experience that oftentimes mortgage loans are either extended or repaid before contractual maturity dates, refinanced at maturity or may go into default and not be repaid by the contractual maturity dates. Therefore, the above tabulations for 2025 and 2024 are not a forecast of future cash collections.

**10. REAL ESTATE HELD FOR SALE, NET**

The following schedule reflects the net costs of real estate properties acquired through or in lieu of foreclosure and held for sale, if any, and the recorded reductions to estimated fair values, including estimated costs to sell when applicable, and other related activity as of and for the years ended December 31:

---

| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
| Beginning balance | $2514438 | $2167535 |
| Costs of real estate acquired through or in lieu of foreclosure |  | 1153180 |
| Improvement costs | 66265 | 93657 |
| Sales of real estate | (438765) | (749934) |
| Provision for losses on real estate held for sale | (396835) | (150000) |
| Ending balance | $1745103 | $2514438 |

---

At December 31, 2025, the real estate held for sale properties included one single family residential property in Alameda County, California, and at December 31, 2024, the real estate held for sale properties included one single family residential property in Alameda County, California, and one single family residential property in San Luis Obispo County, California.

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**11. INCOME TAXES**

The provision for income tax expense relates to IBMF 2 and consists of the following for the year ended December 31, 2025:

---

| | |
|:---|:---|
| Current |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal income taxes | $19605 |
| &nbsp;&nbsp;&nbsp;&nbsp; State income taxes | 5113 |
|  | $24718 |

---

Income taxes are primarily derived from loan origination fees and interest income. The provision for income taxes computed at federal statutory rates differs from the reported provision primarily due to the combining of income of taxable entities with income of non-taxable (pass-through) entities.

**12. COMMITMENTS AND CONTINGENCIES**

<u>Construction loans</u>

At December 31, 2025, the Fund had 110 approved construction loans receivable with a total borrowing limit of approximately $17,879,000. Of these loans, 90 have undisbursed construction funds, totaling approximately $10,219,000 which the Fund reasonably expects to fund during 2026.

At December 31, 2024, the Fund had 88 approved construction loans receivable with a total borrowing limit of approximately $17,322,000. Of these loans, 62 have undisbursed construction funds, totaling approximately $6,134,000 which the Fund reasonably expects to fund during 2025.

Disbursements are made at various completed phases of the construction project. Undistributed amounts will be remitted from the Fund using a combination of line of credit draws, member contributions, reinvestments of earnings, and the payoff of principal on current loans.

<u>Legal proceedings</u>

The Fund is involved in various legal actions arising in the normal course of business. In the opinion of management, such matters will not have a significant adverse effect on the results of operations or financial position of the Fund.

**13. SUBSEQUENT EVENTS**

The Fund has evaluated subsequent events through March 19, 2026, the date the consolidated financial statements were available to be issued.

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**ITEM 8 EXHIBITS**

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| [2.1](http://www.sec.gov/Archives/edgar/data/1462371/000119312517373513/d212592dex1a2acharter.htm) | [Articles of Organization of Iron Bridge Mortgage Fund, LLC (Incorporated by reference to Exhibit 2.1 to Iron Bridge Mortgage, LLC Regulation A Offering Statement for the Senior Secured Demand Notes on Form 1-A as filed with the Securities and Exchange Commission on December 19, 2017 (File No. 024-10777))](http://www.sec.gov/Archives/edgar/data/1462371/000119312517373513/d212592dex1a2acharter.htm) |
| [2.2](http://www.sec.gov/Archives/edgar/data/1462371/000147793222005489/iron_ex21.htm) | [Third Amended and Restated Operating Agreement of Iron Bridge Mortgage Fund, LLC, as amended (Incorporated by reference to Exhibit 2.1 to the Current Report on Form 1-U as filed with the Securities and Exchange Commission on July 29, 2022 (File No. 24R-00149))](http://www.sec.gov/Archives/edgar/data/1462371/000147793222005489/iron_ex21.htm) |
| [2.3](http://www.sec.gov/Archives/edgar/data/1462371/000147793224007591/iron1apos_ex23.htm) | [First Amendment to the Third Amended and Restated Operating Agreement of Iron Bridge Mortgage Fund, LLC, as amended (Incorporated by reference to Exhibit 2.3 to Iron Bridge Mortgage, LLC Post-Qualification Amendment No. 4 to Regulation A Offering Statement on Form 1-A as filed with the Securities and Exchange Commission on November 25, 2024 (File No. 024-11984))](http://www.sec.gov/Archives/edgar/data/1462371/000147793224007591/iron1apos_ex23.htm) |
| [2.4](http://www.sec.gov/Archives/edgar/data/1462371/000147793225005189/iron_ex24.htm) | [Limited Waiver of Fees under the Operating Agreement, effective July 18, 2025, by Iron Bridge Management Group, LLC (Incorporated by reference to Exhibit 2.4 to Iron Bridge Mortgage, LLC No. 4 to Regulation A Offering Statement on Form 1-A as filed with the Securities and Exchange Commission on April 21, 2025 (File No. 024-12642))](http://www.sec.gov/Archives/edgar/data/1462371/000147793225005189/iron_ex24.htm) |
| [4.1](http://www.sec.gov/Archives/edgar/data/1462371/000147793224007591/iron1apos_ex41.htm) | [Form of Class D Unit Subscription Agreement, including Power of Attorney (Incorporated by reference to Exhibit 4.1 to Iron Bridge Mortgage, LLC Post-Qualification Amendment No. 4 to Regulation A Offering Statement on Form 1-A as filed with the Securities and Exchange Commission on November 25, 2024 (File No. 024-11984))](http://www.sec.gov/Archives/edgar/data/1462371/000147793224007591/iron1apos_ex41.htm) |
| [4.2](http://www.sec.gov/Archives/edgar/data/1462371/000147793224007591/iron1apos_ex42.htm) | [Form of Class C Unit Subscription Agreement, including Power of Attorney (Incorporated by reference to Exhibit 4.2 to Iron Bridge Mortgage, LLC Post-Qualification Amendment No. 4 to Regulation A Offering Statement on Form 1-A as filed with the Securities and Exchange Commission on November 25, 2024 (File No. 024-11984))](http://www.sec.gov/Archives/edgar/data/1462371/000147793224007591/iron1apos_ex42.htm) |
| [4.3](http://www.sec.gov/Archives/edgar/data/1462371/000147793224007591/iron1apos_ex43.htm) | [Form of Class B Unit Subscription Agreement, including Power of Attorney (Incorporated by reference to Exhibit 4.3 to Iron Bridge Mortgage, LLC Post-Qualification Amendment No. 4 to Regulation A Offering Statement on Form 1-A as filed with the Securities and Exchange Commission on November 25, 2024 (File No. 024-11984))](http://www.sec.gov/Archives/edgar/data/1462371/000147793224007591/iron1apos_ex43.htm) |
| [4.4](http://www.sec.gov/Archives/edgar/data/1462371/000147793224007591/iron1apos_ex44.htm) | [Form of Class A Unit Subscription Agreement, including Power of Attorney (Incorporated by reference to Exhibit 4.4 to Iron Bridge Mortgage, LLC Post-Qualification Amendment No. 4 to Regulation A Offering Statement on Form 1-A as filed with the Securities and Exchange Commission on November 25, 2024 (File No. 024-11984))](http://www.sec.gov/Archives/edgar/data/1462371/000147793224007591/iron1apos_ex44.htm) |
| [6.1](http://www.sec.gov/Archives/edgar/data/1462371/000147793225006641/ron_ex61.htm) | [Amended and Restated Business Loan and Security Agreement (Revolving Line of Credit), dated effective July 31, 2025, by and between Iron Bridge Mortgage Fund, LLC and Columbia Bank (Incorporated by reference to Exhibit 6.1 to the Semi-Annual Report on Form 1-SA as filed with the Securities and Exchange Commission on September 11, 2025(File No. 24R-00149))](http://www.sec.gov/Archives/edgar/data/1462371/000147793225006641/ron_ex61.htm) |
| [6.2](http://www.sec.gov/Archives/edgar/data/1462371/000147793225006641/ron_ex62.htm) | [Amended and Restated Promissory Note, dated effective July 31, 2025, issued by Iron Bridge Mortgage Fund, LLC in favor of Columbia Bank (Incorporated by reference to Exhibit 6.2 to Semi-Annual Report on Form 1-SA as filed with the Securities and Exchange Commission on September 11, 2025(File No. 24R-00149))](http://www.sec.gov/Archives/edgar/data/1462371/000147793225006641/ron_ex62.htm) |
| [6.3](http://www.sec.gov/Archives/edgar/data/1462371/000147793225006641/ron_ex63.htm) | [Amended and Restated Pledge and Security Agreement (IB Sub Loan), dated July 31, 2025, by and between Iron Bridge Mortgage Company and Columbia Bank (Incorporated by reference to Exhibit 6.3 to the Semi-Annual Report on Form 1-SA as filed with the Securities and Exchange Commission on September 11, 2025(File No. 24R-00149))](http://www.sec.gov/Archives/edgar/data/1462371/000147793225006641/ron_ex63.htm) |
| [6.4\*](iron_ex64.htm) | [First Amendment to Loan Documents, dated February 25, 2026, by and between Iron Bridge Mortgage Fund, LLC and Columbia Bank](iron_ex64.htm) |

---

______

\*Filed herewith

---

| |
|:---|
| 45 |
| *[**Table of Contents**](#toc)* |

---

**SIGNATURES** 

Pursuant to the requirements of Regulation A, the issuer has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | |
|:---|:---|
| **IRON BRIDGE MORTGAGE FUND, LLC** | **IRON BRIDGE MORTGAGE FUND, LLC** |
| By: | */s/ Gerard Stascausky* |
| Name:  | Gerard Stascausky |
| Title:  | Chief Executive Officer |
| <br> Date: | <br> April 20, 2026 |

---

Pursuant to the requirements of Regulation A, this report has been signed below by the following persons on behalf of the issuer and in the capacities and on the dates indicated.

---

| | |
|:---|:---|
| **Name** | **Title** |
| */s/ Gerard Stascausky* | Chief Executive Officer of Iron Bridge Mortgage Fund, LLC |
| Gerard Stascausky | Managing Director of Iron Bridge Management Group, LLC<br> (Principal Executive Officer, Principal Financial Officer<br> and Principal Accounting Officer) |

---

## Ex1K-6

**EXHIBIT 6.4**

**FIRST AMENDMENT TO AMENDED AND RESTATED LOAN DOCUMENTS**

THIS FIRST AMENDMENT TO AMENDED AND RESTATED LOAN DOCUMENTS (this "<u>Agreement</u>") is entered into as of February 25, 2026 (the "<u>Effective Date</u>"), by and between IRON BRIDGE MORTGAGE FUND, LLC, an Oregon limited liability company ("<u>Borrower</u>"), on the one hand, and COLUMBIA BANK, an Oregon state-chartered bank (as successor-in- interest to Umpqua Bank) ("<u>Lender</u>"), on the other hand.

**RECITALS**

1. Lender heretofore extended to Borrower a revolving line of credit in the original maximum principal amount of Eighty Million and No/100 Dollars ($80,000,000.00) (the " <u>Loan</u> " or " <u>Revolving Line of Credit</u> "), which Revolving Line of Credit is evidenced by, without limitation, that certain Amended and Restated Promissory Note dated as of July 31, 2025, executed by Borrower in favor of Lender (together with any and all amendments thereto or modifications thereof, the " <u>Note</u> "), which Note amended and restated in its entirety that certain Promissory Note dated as of May 7, 2021, executed by Borrower in favor of Lender.

2. In connection with the Loan, Borrower also executed and delivered to and in favor of Lender that certain Amended and Restated Business Loan and Security Agreement (Revolving Line of Credit) dated July 31, 2025 (together with any sand all amendments thereto or modifications thereof, the " <u>Loan Agreement</u> "), pursuant to which, among other things, Borrower granted to Lender a security interest in the Collateral (as defined in the Loan Agreement) to secure Borrower's obligations to Lender in connection with the Loan, and which Loan Agreement amended and restated in its entirety that certain Business Loan and Security Agreement (Revolving Line of Credit) dated May 7, 2021, executed by and between Borrower and Lender.

3. In connection with the Loan, Borrower also executed and delivered to and in favor of Lender that certain Amended and Restated Pledge and Security Agreement (IB Sub Loan) dated July 31, 2025 (together with any and all amendments thereto or modifications thereof, the " <u>Pledge Agreement</u> "), pursuant to which, among other things, Borrower granted to Lender a security interest in the Pledged Property (as defined in the Pledge Agreement) to secure Borrower's obligations in connection with the Loan, and which Pledge Agreement amended and restated in its entirety that certain Pledge and Security Agreement (IB Sub Loan) dated March 3, 2025, executed by Borrower in favor of Lender.

4. Lender perfected its interest in and to the Collateral by causing to be filed a UCC-1 financing statement with the Oregon Secretary of State on July 26, 2021 as Filing No. 92877891 (the " <u>UCC Financing Statement</u> "). Lender's security interest in the Collateral is first in priority and duly perfected under applicable Law.

5. The Loan Agreement, Note, Pledge Agreement, UCC Financing Statement, and all other assignments, agreements, instruments and other documents executed by Borrower in connection with the Revolving Line of Credit shall at times hereinafter be referred to collectively as the " <u>Loan Documents</u>."

6. Borrower has requested that Lender amend the Loan Documents to, among other things, modify certain eligibility and appraisal requirements of the Collateral Loans. Lender is willing to agree to the foregoing on the terms and conditions set forth herein.

**AGREEMENT**

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto do hereby agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Recitals; Defined Terms</u>.

The recitals are incorporated herein by this reference as are all exhibits. Borrower agrees and acknowledges that the factual information recited above is true and correct. Except as may be otherwise expressly defined in this Agreement, all terms used in this Agreement beginning with a capital letter shall have the meanings ascribed to them in the Loan Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Borrower Acknowledgments as to Obligations and Other Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Borrower acknowledges, confirms and agrees that as of February 25, 2026, the total outstanding principal balance of the Note is $59,104,437.09, plus accrued and unpaid interest thereon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Borrower specifically acknowledges, confirms and agrees that they do not have any valid offset or defense to the obligations, indebtedness and liability under the Loan Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Reaffirmation of Obligations</u>.

This Agreement is, in part, a reaffirmation of the obligations, indebtedness and liability of Borrower to Lender as evidenced by the Loan Agreement and the other Loan Documents. Therefore, Borrower represents, warrants, acknowledges and agrees that, except as specified herein, all of the terms and conditions of the Loan Documents are and shall remain in full force and effect, without waiver or modification of any kind whatsoever, and are ratified and confirmed in all respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Amendments to Loan Agreement</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. The definition of "Appraisal" set forth in Section 1 of the Loan Agreement is hereby deleted in its entirety and replaced with the following:

"'<u>Appraisal</u>' means (i) a Borrower-prepared evaluation of the "as-is" value of the Underlying Collateral, which evaluation must be reasonably satisfactory to Lender in its sole and absolute opinion and judgment, prepared at Borrower's expense and the scope of which must satisfy the Interagency Appraisal and Evaluations Guidelines as reasonably determined by Lender, (ii) subject to Section 4.1.1(b), a third-party valuation of the Underlying Collateral reasonably acceptable to Lender, or (iii) an appraisal of the Underlying Collateral reasonably acceptable to Lender, performed and prepared for Lender at Borrower's sole expense by a duly licensed or certified appraiser approved by Lender and possessing all qualifications required by Lender and applicable Laws, setting forth the appraiser's opinion and determination of the fair market value of the Underlying Collateral; said Appraisal shall be prepared in full narrative form meeting all requirements and approaches to value as shall be necessary or appropriate in order to comply with all customary and generally accepted appraisal standards within the appraisal industry and in accordance with Lender's requirements, and to Lender's satisfaction in its sole opinion and judgment and all applicable Laws governing Lender's operations (including, but not limited to, the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) and Uniform Standards of Professional Appraisal Practice (USPAP))."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Section 4.6.4 of the Loan Agreement is hereby deleted in its entirety and replaced with the following:

"4.6.4 <u>Appraisals</u>. The initial Appraisal of any underlying real property collateral securing any Collateral Loan shall be provided by Borrower to Lender, at Borrower's expense, subject, in all respects, to Section 4.1.1(b). In addition to the initial Appraisal, if requested by Lender to determine compliance with FIRREA, Borrower shall deliver to Lender the applicable engagement letter with the appraiser for each such Appraisal."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Schedule 2 attached to the Loan Agreement is hereby deleted in its entirety and replaced with the "Schedule 2 Ineligible Receivables and Advance Rate Restrictions" attached hereto as Exhibit "A" and incorporated herein by this reference.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Agreement as a Loan Document</u>.

From and after the Effective Date of this Agreement, this Agreement and any other documents and instruments executed in connection herewith shall each constitute one of the "Loan Documents."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Effective Date of Agreement</u>.

This Agreement and the amendments provided for herein shall be effective as of the Effective Date, subject to the timely and complete satisfaction of each and all of the conditions precedent set forth in Section 8 of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Borrower's Representations and Warranties</u>.

Borrower hereby represents and warrants to Lender and covenant and agree with Lender as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Borrower has full legal right, power and authority to enter into and perform this Agreement. The execution and delivery of this Agreement by Borrower and the consummation by Borrower of the transactions contemplated hereby have been duly authorized by all necessary action by or on behalf of Borrower. This Agreement is a valid and binding obligation of Borrower enforceable against Borrower in accordance with its terms, except as enforceability may be limited by (i) applicable bankruptcy, insolvency, reorganization or other similar laws relating to or affecting the enforcement of creditors' rights and (ii) by general principles of equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Neither the execution and delivery of this Agreement by Borrower, nor the consummation by Borrower of the transactions contemplated hereby, conflicts with or constitutes a violation or a default under any material Law applicable to Borrower, or any contract, commitment, agreement, arrangement or restriction of any kind to which Borrower is a party, by which Borrower is bound or to which any of Borrower's property or assets is subject.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. There are no actions, suits, or proceedings pending, or threatened in writing, against or affecting the Borrower, or involving the validity or enforceability of any of the Loan Documents, except actions, suits, and proceedings that are fully covered by insurance or which, if adversely determined, would not substantially impair the ability of Borrower to perform its obligations under the Loan Documents, and Borrower is not in default with respect to any material order, writ, injunction, decree or demand of any court or any Governmental Agency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Borrower hereby reaffirms and confirms that the representations and warranties of Borrower contained in the Loan Documents are true, correct and complete in all material respects as of the date of this Agreement (without duplication of any materiality qualifiers).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Borrower is in full and complete compliance with the terms, covenants, provisions and conditions of the Loan Agreement, the Note and the other Loan Documents to which they are a party.

All covenants, representations and warranties of Borrower herein are incorporated by reference and hereby made a part of the Loan Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Conditions Precedent to Effectiveness of Agreement</u>.

The effectiveness of this Agreement shall be expressly conditioned upon the following having occurred or Lender having received all of the following on or before March 13, 2026, in form and content satisfactory to Lender and its counsel, in its or their reasonable discretion, and suitable for filing or recording, as the case may be, as required:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. This Agreement, fully executed by Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Resolutions, certifications and/or other authorizations of Borrower, Borrower's members and such other Persons as Lender shall request, evidencing, without limitation, approval and authorization of the transactions contemplated hereunder and the documents and instruments to be executed by Borrower in connection herewith; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Payment of the fees and costs of Lender in connection with the preparation, negotiation, administration and execution of this Agreement including, but not limited to, attorneys' fees, and other costs and fees of other professionals retained by Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>General Release of Lender</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Except as to the obligations imposed upon Lender, as provided herein, Borrower on behalf of itself, its respective successors and assigns, and each of them, does hereby forever relieve, release, acquit and discharge Lender and its predecessors, successors and assigns, and their respective past and present attorneys, accountants, insurers, representatives, affiliates, partners, subsidiaries, officers, employees, directors, and shareholders, and each of them (collectively, the "<u>Released Parties</u>"), from any and all claims, debts, liabilities, demands, obligations, promises, acts, agreements, costs and expenses (including, but not limited to, attorneys' fees), damages, injuries, actions and causes of action, of whatever kind or nature, whether legal or equitable, known or unknown, suspected or unsuspected, contingent or fixed, which Borrower now owns or holds or has at any time heretofore owned or held or may at any time hereafter own or hold against the Released Parties, or any of them, by reason of any acts, facts, transactions or any circumstances whatsoever occurring or existing through the date of this Agreement, including, but not limited to, those based upon, arising out of, appertaining to, or in connection with the Recitals above, the Loan, the Loan Documents, the facts pertaining to this Agreement, any collateral heretofore granted to Lender or granted in connection herewith, or to any other obligations of Borrower to Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Miscellaneous</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Section headings used in this Agreement are for convenience only and shall not affect the construction of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. This Agreement may be executed in one or more counterparts but all of the counterparts shall constitute one agreement; provided, however, this Agreement shall not be effective and enforceable unless and until it is executed by all parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. This Agreement and the other documents and instruments executed in connection therewith constitute the product of the negotiation of the parties hereto and the enforcement hereof shall be interpreted in a neutral manner, and not more strongly for or against any party based upon the source of the draftsmanship hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. This Agreement shall be binding upon and inure to the benefit of Lender, Borrower, and their respective successors and assigns, except that Borrower shall not assign its rights hereunder or any interest therein without the prior written consent of Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. This Agreement is not a novation, nor, except as expressly provided in this Agreement, is it to be construed as a release or modification of any of the terms, conditions, warranties, waivers or rights set forth in the Loan Documents. Nothing contained in this Agreement shall be deemed to constitute a waiver by Lender of any required performance by Borrower of any Event of Default or default heretofore or hereafter occurring under or in connection with the other Loan Documents. In the event there is a conflict in any term, condition or provision of this Agreement, on the one hand, and the Loan Agreement, or any of the other Loan Documents, on the other hand, the terms, conditions and provisions of this Agreement are to control.

*[Signature Page Follows]*

IN WITNESS WHEREOF, Borrower and Lender have executed and delivered this Agreement as of the date set forth above.

**BORROWER:**

IRON BRIDGE MORTGAGE FUND, LLC

an Oregon limited liability company

By: Iron Bridge Management Group, LLC, an Oregon limited liability company <br> Its: Manager

---

| | |
|:---|:---|
| By: | */s/ Gerard Stascausky* |
| Name: | Gerard Stascausky |
| Its: | Managing Member |

---

**LENDER:**

COLUMBIA BANK,

an Oregon state-chartered bank (as successor-in-interest to Umpqua Bank)

---

| | |
|:---|:---|
| By: | */s/ Ken Vogt* |
| Name: | Ken Vogt |
| Its: | Senior Vice President |

---

**EXHIBIT "A"**

**<u>Schedule 2</u>**

<u>Ineligible Receivables and Advance Rate Restrictions</u>

Without limitation, the following shall not be included in Eligible Receivables and/or the following restrictions shall apply to the Advance Rate:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any Collateral Loan which has incomplete loan documentation or for which any loan documentation is not fully executed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any Collateral Loan to any Affiliate or principal of Borrower, or to any other entities where any Affiliates of Borrower or principals of Borrower are the beneficial owners;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any Collateral Loan for which any levy has been made on any Underlying Collateral therefor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Any Collateral Loan with an initial term of more than eighteen (18) months or any Collateral Loan that ages to a point where it is more than eighteen (18) months since its initial funding date; <u>provided</u>, <u>however</u>, such periods shall be extended to a maximum of twenty- four (24) months for any Collateral Loans (New Construction). For the avoidance of doubt, any Collateral Loan with an appraised "as complete" value included in the New Build Sublimit set forth below shall remain subject to the foregoing eighteen (18) dwell time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Any Collateral Loan secured by real property located in a state or jurisdiction where non-judicial foreclosure is not an available remedy, taken in the aggregate with any other Collateral Loans secured by real property in a state or jurisdiction where non-judicial foreclosure is not an available remedy, that exceeds 10% of total Collateral Loans, as determined by Lender in its sole and absolute discretion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Any Collateral Loan with required payments that are more than thirty (30) days past due or where judicial or non-judicial foreclosure proceedings have been commenced;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Any Collateral Loan that is not held and acknowledged by Custodian, <u>provided,</u> <u>however</u>, Lender shall permit, in its sole and absolute discretion, up to fifteen (15) Collateral Loans that are not held and acknowledged by Custodian to be Eligible Receivables, so long as (1) Lender has received a copy of the Collateral Loan Documents relating to such Collateral Loan(s), (2) it has not been more than thirty (30) days since such Collateral Loan(s) was originated, and (3) such Collateral Loan(s) do not constitute an Ineligible Receivable in accordance with this <u>Schedule 2</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Any Collateral Loan where the Custodian has not acknowledged receipt of either the original recorded Mortgage or escrow certified copy of the original recorded Mortgage within ninety (90) days of such Collateral Loan's origination;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Any Collateral Loan where the Custodian has not acknowledged receipt of the applicable title insurance policy within one hundred eighty (180) days of such Collateral Loan's origination;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Any Collateral Loan secured by anything other than a (1st) first priority lien upon and/or security interest in an existing (i) single family residence with an occupancy permit, (ii) 1-4 unit multi-family residential property with an occupancy permit, or (iii) a new single family residence, 1-4 unit multi-family building, or up to ten unit freestanding and/or townhome style single family residences under construction (subject to the New Build Sublimit);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Any portion of a Collateral Loan (New Construction), or a Collateral Loan with an appraised "as complete" value, taken in the aggregate with any other Collateral Loans (New Construction) and Collateral Loans with an appraised "as complete" value already included in the Borrowing Base, that exceeds $8,000,000.00 (the "<u>New Build Sublimit</u>");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) Any Collateral Loan made for a consumer purpose, as determined by Lender in its sole and absolute discretion, and/or with respect to which the Underlying Collateral, consists of an owner-occupied residence;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) Any portion of a Collateral Loan that is not a Collateral Loan (New Construction) that exceeds 90% of the lesser of (1) the purchase price of the Underlying Collateral being financed, (2) Borrower's estimated pre-renovation value, which may be subject to a third party valuation review and acceptance by Lender, or (3) the appraised value pursuant to a FIRREA- compliant Appraisal, as determined by Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) Any portion of a Collateral Loan (New Construction), or any portion of a Collateral Loan with an appraised "as complete" value, as determined by Lender,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) where the Underlying Collateral consists of a one to four residence property that exceeds 70% of the lesser of (1) the combined appraised "as-complete" value of such Collateral Loan (New Construction), or (2) Borrower's estimated as complete value; <u>provided</u>, <u>however</u>, any single Advance on a Collateral Loan (New Construction) shall be limited to $1,000,000.00; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) where the Underlying Collateral consists of a greater than four but less than ten residence property that exceeds 70% of the lesser of (1) the appraised "bulk-value" value of such Collateral Loan (New Construction), or (2) Borrower's estimated as complete value; <u>provided</u>, <u>however</u>, any single Advance on a Collateral Loan (New Construction) shall be limited to $1,000,000.00.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) Any portion of the principal amount of a Collateral Loan that is not a Collateral Loan (New Construction) where the maximum principal amount is in excess of $800,000.00; <u>provided</u>, <u>however</u>, if the Underlying Collateral encumbered by such Collateral Loan has been valued with a FIRREA-compliant Appraisal, as determined by Lender, then any portion of the principal amount of such Collateral Loan where the maximum principal amount is in excess of $1,333,000.00;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) Any portion of a Collateral Loan (New Construction) where the maximum principal amount or appraised "as complete" value (or "bulk-value" for residential properties greater than four but less than ten residences) is in excess of $1,333,000.00;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) Any portion of a Collateral Loan that constitutes a potential offset, including, but not limited to, interest reserve funds, owed to a Collateral Loan Obligor for such Collateral Loan, as determined by Lender in its sole discretion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) Unless otherwise approved by Lender in writing, any Collateral Loan, taken in the aggregate with any other Collateral Loans to the same Collateral Loan Obligor, that exceeds 5% of total Collateral Loans. For the avoidance of doubt, such 5% limit will be calculated by Lender by taking (i) the total Collateral Loans to a Collateral Loan Obligor that are Eligible Receivables, divided by (ii) the total Collateral Loans pledged to Lender under the Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) Any Collateral Loan where any portion of the Underlying Collateral consists of condominium property; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) Any Collateral Loan that is required to be removed as part of the Borrowing Base pursuant to the terms of this Agreement.

9<br>

## Form 1-K Filing Summary

### Filer Information

**Issuer CIK:** 0001462371

**Issuer CCC:** XXXXXXXX

**Is filer a shell company?:** No

**Is this filing by a successor company?:** No

### Submission Contact Information

**Is this a LIVE or TEST Filing?:** LIVE

**Period:** 12-31-2025

### Item 1: Issuer Information (Tab 1 Notification)

**Type of Report:** Annual Report

**Fiscal Year End:** 12-31-2025

**Exact Name of Issuer:** Iron Bridge Mortgage Fund, LLC

**CIK:** 0001462371

**Jurisdiction of Incorporation:** OR

**IRS Number:** 26-3458758

**Address:** 9755 SW Barnes Road, Suite 420, Portland, OR 97225

**Issuer Phone Number:** 503-225-0300

**Title of each class of securities issued pursuant to Regulation A:** Class A, Class B, Class C and Class D Units

### Item 2: Ongoing Reporting Requirements

**Is the issuer relying on the relief provided by Rule 257(d) for this filing?** Yes