{"url_path":"/sec/cik-0001695963/10-k/2026/item-13","section_key":"item-13","section_title":"Item 13 Certain Relationships and Related","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":303,"has_tables":true,"body_markdown":"**Item 13. Certain Relationships and Related\nTransactions, and Director Independence**\n\n \n\nThe principal shareholders of the Company are\nHolly MacDonald-Korth (39%) and James Korth (34%). Mr. Korth is Chairman and a Director of the Company, and together with his daughter,\nHolly MacDonald-Korth, the CEO, President, Chief Financial Officer, and a Director of the Company, they both control 73% of the Company\nvoting stock. In June 2023, Ms. MacDonald-Korth purchased 1,100,000 shares of Company stock from her father, making her the largest shareholder.\n\n \n\nKDM earns money by making and servicing loans,\nJ. W. Korth, a wholly owned subsidiary of KDM, is a broker-dealer that makes money by selling securities, including securities issued\nby KDM.\n\n \n\nSome members of the KDM loan origination team\nare also registered brokers with J.W. Korth. Such employees may be paid for both origination and sales of a loan and a Note, respectively.\nWe mitigate these conflicts of interest with compliance oversight and review of such transactions and compensation.\n\n** **\n\nWe believe we may have certain conflicts arising\nfrom our rating system. The same people doing our ratings may also benefit from the sales of Notes and making new CM Loans. Further, J.W.\nKorth is owned by KDM, and distributes our Notes and may make a market in them. Ratings will be reviewed periodically and changed as necessary\nfor each CM Loan and the corresponding Notes. If a secondary market were to develop, secondary market prices for our Notes may move up\nor down if the rating is changed. However, no such market currently exists.\n\n \n\nWe may change any of our procedures regarding\nmanaging our conflicts of interest at any time. We also may amend our rating procedure at any time.\n\n \n\n**Indemnification Agreement**\n\n \n\nOur Bylaws provide that we will indemnify our\nmembers, managers and officers to the fullest extent permitted by Florida law."}