{"url_path":"/sec/cik-0001695963/10-k/2026/item-11","section_key":"item-11","section_title":"Item 11 Executive Compensation**","topic":"sec","document":{"doc_type":"10-K","doc_date":"2026-06-01","source_url":"https://www.sec.gov/Archives/edgar/data/1695963/0001214659-26-006969-index.html","accession_number":"0001214659-26-006969","cik":"0001695963","ticker":null,"issuer_name":"Korth Direct Mortgage Inc.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1695963/0001214659-26-006969-index.html","primary_entity_key":"0001695963","primary_entity_name":"Korth Direct Mortgage Inc."},"word_count":868,"has_tables":true,"body_markdown":"**Item 11. Executive Compensation** \n\n \n\n**Summary Compensation Table**\n\n \n\nThe following table provides summary information regarding compensation\nearned by the named executive officer during the fiscal years ended December 31, 2025 and 2024.\n\n \n\n \n \n \n \n \n \n \n \n \n \n \n**Option**\n \n \n**All Other**\n \n \n \n \n\n**Name**\n \n \n \n \n**Salary**\n \n \n**Bonus**\n \n \n**Awards**\n \n \n**Compensation**\n \n \n**Total**\n \n\n**and Principal Position**\n \n**Year**\n \n \n**($)**\n \n \n**($)**\n \n \n**(1)**\n \n \n**($)**\n \n \n**($)**\n \n\nHolly MacDonald Korth,\n\nChief Executive Officer,\n\nPresident and Chief\n\nFinancial Officer\n\n \n \n2025\n \n \n$\n614,400\n \n \n$\n0\n \n \n \n0\n \n \n$ \n0\n \n \n$\n614,400\n \n\n \n \n \n2024\n \n \n$\n614,400\n \n \n$\n \n \n \n \n0\n \n \n$\n0\n \n \n$\n614,400\n \n\nJames W Korth,\n\nChairman\n\n \n \n2025\n \n \n$\n400,000\n \n \n$ \n 0\n \n \n \n0\n \n \n$\n0\n \n \n$\n400,000\n \n\n \n \n \n2024\n \n \n$\n400,000\n \n \n$\n 0\n \n \n \n0\n \n \n$ \n0\n \n \n$\n400,000\n \n\n \n\nFor the years ended December 31, 2025 and 2024,\nour Chief Lending Officer, Daniel Llorente, received compensation of $192,000.\n\n \n\nThe Company does not have a compensation or other\ncommittee of its directors.\n\n \n\n**Equity Compensation Plan Information**\n\n \n\nThe Korth Direct Mortgage\nInc. 2019 Stock Option Plan (the “Stock Plan”) provides for the grant of both incentive and non-statutory stock options to\nkey employees, directors or other persons having a service relationship with the Company. Effective December 8th, 2022 for\nthe purchase of up to an aggregate of 3,000,000 shares of the Company’s common stock, $0.001 par value. The Stock Plan is administered\nby the Board of Directors or a committee appointed by the Board.\n\n \n\nThe purpose of the Stock Plan is to attract, retain and motivate employees,\nofficers, directors, consultants, agents, advisors and independent contractors of the Company by providing them the opportunity to acquire\na proprietary interest in the Company and to link their interests and efforts to the long-term interests of the Company’s shareholders.\n\n \n\nThe following table presents details of the Company’s equity\ncompensation plan as of December 31, 2025:\n\n* *\n\n \n \n**Number of securities\nto be issued upon\nexercise of outstanding\noptions**\n \n \n**Weighted-average\nexercise price of\noutstanding options**\n \n \n**Number of securities\nremaining available for\nfuture issuance under\nequity compensation plans\n(excluding securities\nreflected in column (a))**\n \n\n \n \n**(a)**\n \n \n**(b)**\n \n \n**(c)**\n \n\nEquity compensation plans approved\n\nby security holders (1)\n\n \n \n1,065,000\n \n \n$\n1.15\n \n \n \n1,935,00\n \n\nEquity compensation plans not\n\napproved by security holders\n\n \n \n–\n \n \n \n–\n \n \n \n–\n \n\nTotal\n \n \n1,065,000\n \n \n$\n1.15\n \n \n \n1,935,000\n \n\n \n\n(1) Consists of the Company’s Stock Plan.\n\n \n\n 24 \n\n [Table of Contents](#toc)\n\n \n\n*Description of the Stock Plan*\n\n* *\n\nThe Stock Plan is administered by the Board of Directors of the Company.\nThe maximum number of shares of common stock available for issuance under the Stock Plan is 3,000,000.\n\n \n\nThe Stock Plan permits awards of incentive stock\noptions, nonqualified stock options, and restricted stock. The Stock Plan provides that the exercise price of any option will not be less\nthan the fair market value of the common stock on the date of grant or, for a 10% shareholder, 110% of fair market value.\n\n \n\n*Eligibility*\n\nAn award under the Stock Plan can be made to any\nemployee, consultant, or director of the Company, as selected by the Board of Directors.\n\n \n\n*Shares Covered by the Stock Plan*\n\nThe Stock Plan permits the granting of awards\ncovering an aggregate of 1,065,000 shares of Company common stock. The shares of Company common stock may be either authorized but unissued\nshares or treasury shares.\n\n \n\nAny shares that are reserved for options or performance\nshares that lapse, expire, terminate or are cancelled, or if shares of Company common stock are issued under the plan and are thereafter\nreacquired by the Company, the shares subject to such awards and the reacquired shares may be available for subsequent awards under the\nStock Plan.\n\n \n\n*Stock Options and Rights*\n\nOptions granted under the Stock Plan may be either\nnon-qualified stock options or incentive stock options qualifying for special tax treatment under Section 422 of the Internal Revenue\nCode. The exercise price of any stock option may not be less than the fair market value of the shares of common stock on the date of grant\nand 110% of fair market value for 10% shareholders. The exercise price is payable in cash, shares of common stock previously owned by\nthe optionee or a combination of cash and shares of common stock previously owned by the optionee, or by a recourse or non-recourse note\nexecuted by the nominee (subject to Sarbanes-Oxley prohibitions on officer loans). Both non-qualified stock options and incentive stock\noptions will generally expire on the tenth anniversary of the date of the grant, unless otherwise specified.\n\n \n\n*Restricted Stock Plan*\n\nUnder the Stock Plan, the Board of Directors may\ngrant shares of restricted stock on terms and conditions, including performance criteria, repurchase and forfeiture, as determined by\nthe Board. Upon satisfaction of the terms and conditions of the award, shares of restricted stock become transferable.\n\n \n\n*Amendment and Termination of the Stock Plan*\n\nThe Board may, at any time, amend the Stock Plan\nor any portion of the plan, provided that to the extent required by law or a stock exchange rule, shareholder approval is required for\nany amendment to the plan. By its terms, the Stock Plan terminates ten years after its effective date.\n\n \n\n*Director Compensation*\n\nNo directors receive\ncompensation for their work as a director. However, directors received common stock options for their services as employees or consultants\nto the Company. See Item 12 “Security Ownership of Certain Beneficial Ownership and Management and Related Stockholder Matters”.\n\n \n\n 25 \n\n [Table of Contents](#toc)"}