{"url_path":"/sec/cik-0001695963/10-k/2026/item-5","section_key":"item-5","section_title":"Item 5 Market for Registrant’s Common","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":448,"has_tables":true,"body_markdown":"**Item 5. Market for Registrant’s Common\nEquity, Related Stockholder Matters and Issuer Purchases of Equity Securities**\n\n \n\nMarket Information\n\n \n\nThere is no market for the Company’s common equity.\n\n \n\nHolders\n\n \n\nAs of December 31, 2025, the Company had issued\nand outstanding (i) 5,000,000 shares of its common stock, all which were issued to J.W. Korth, (ii) 460,000 shares of its Series A 6%\nCumulative Perpetual Convertible Preferred Stock (the “Series A Preferred”), all of which were issued to Cede & Company,\nand (iii) 19,000 shares of its Series B 6.50% Cumulative Non-Voting Redeemable Secured Preferred Stock (“Series B Preferred”)\nissued to Cede & Company. The number of holders was determined from the records of our transfer agent and does not include beneficial\nowners of common or preferred stock whose shares are held in the names of Cede & Company, broker-dealers, or registered clearing agencies.\nThe transfer agent of our common stock and preferred stock is Continental Transfer and Trust Company, One State Street, New York, New\nYork 10004.\n\n \n\nDividends\n\n \n\nThe Company has not paid, and has no plans to\npay dividends on its common stock. Holders of the Series A Preferred are entitled to receive, when, as, and if declared by the Board of\nDirectors, cash dividends at a rate of 6.00% per annum based on the Series A Preferred liquidation preference of $25.00 per share. Holders\nof the Company’s 460,000 issued shares of Series A Preferred were paid a dividend totaling $1.50 per share over four quarterly payments\nfor the year ended December 31, 2025.\n\n \n\nHolders of the Series B Preferred are entitled\nto receive, when, as, and if declared by the Board of Directors, cash dividends at a rate of 6.50% per annum based on the Series B liquidation\npreference of $1,000.00 per share. These holders received dividends of $65.00 per share for the year ended December 31, 2025.\n\n \n\nSecurities Authorized for Issuance Under Equity Compensation Plans.\n\n \n\nFor information regarding securities authorized\nfor issuance under our 2019 Stock Plan, please refer to the disclosure included below under the caption “Item 11. Executive Compensation—Equity\nCompensation Plan Information.”\n\n \n\nSales of Unregistered Securities\n\n \n\nOn June 29, 2021, KDM issued and sold 19,000 shares of its Series B\nPreferred to “qualified institutional buyers,” as defined in Rule 144A under the Securities Act of 1933, as amended (the “Securities\nAct”), under exemptions from registration provided by Section 4(a)(2) of the Securities Act and Securities Act Rule 144A,\n\n \n\nOn September 15, 2021, June 28, 2022, and March 23,2023, KDM issued\nand sold 100,000, 480,000, and 160,000 shares, respectively of its Series A Preferred to qualified institutional buyers under exemptions\nfrom registration provided by Section 4(a)(2) of the Securities Act and Securities Act Rule 144A,"}