CONTINGENT LIABILITY

3 Months Ended

Mar. 31, 2024

Commitments and Contingencies Disclosure [Abstract]

NOTE 3 – CONTINGENT LIABILITY

As part of the acquisition of J. W. Korth, the Company agreed to pay (i) the Preferred Capital Interest partners of J.W. Korth accrued and unpaid dividends of 6% per annum through July 31, 2020; (ii) the J.W. Korth Preferred Capital Interest Partners quarterly dividends concurrently with its payment of the Company’s Series A Preferred Stock dividends at least annually; and (iii) in such years as it pays Series A Preferred Stock dividends, redeem 25% annually of the J.W. Korth Preferred Capital Interest partners through a capital contribution to J. W. Korth.

The following table summarizes the unpaid Contingent Liability outstanding as of March 31, 2024:


Contingent liability to redeem J.W. Korth Preferred Capital Interest Partners	$	320,500
Contingent liability payment		(160,250	)
Accrued quarterly dividends recorded as interest expense through March 31, 2024		4,394
Contingent Liability, net	$	164,644

Korth Direct Mortgage Inc. 10-Q