Dream Homes & Development Corp. Liquidation Value

DREM Operative Builders

Cash & Equivalents

$899,408
As of 2025-12-31
Current Price: N/A

Key Metrics

Cash Liquidation Value

Cash minus Total Obligations
Cash: $1.80M
Total Obligations: -$4.53M
$-2.73M
Per share: $-0.06
Period: 2025-12-31
incomplete 2 components missing — treated as $0 in formula. Why?
  • Finance Lease Liability: not reported in this period (annual-only)
  • Operating Lease Liability: not reported in this period (annual-only)

Liquid Liquidation Value

Cash + AR minus Total Obligations
Cash: $1.80M
AR: $149,855
Total Obligations: -$4.53M
$-2.58M
Per share: $-0.05
Period: 2025-12-31
incomplete 2 components missing — treated as $0 in formula. Why?
  • Finance Lease Liability: not reported in this period (annual-only)
  • Operating Lease Liability: not reported in this period (annual-only)

Operating Liquidation Value

Cash + AR + Inventory minus Total Obligations
Cash: $1.80M
AR: $149,855
Inventory: $4.91M
Total Obligations: -$4.53M
$2.33M
Per share: $0.05
Period: 2025-12-31
incomplete 2 components missing — treated as $0 in formula. Why?
  • Finance Lease Liability: not reported in this period (annual-only)
  • Operating Lease Liability: not reported in this period (annual-only)

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Liquidation Ladder

MetricTotalPer Share
Cash Liquidation Value$-2.73M$-0.06
Liquid Liquidation Value$-2.58M$-0.05
Operating Liquidation Value$2.33M$0.05

Key Components (as of 2025-12-31)

Data as of 2025-12-31 from 10-K filed 2026-04-17. View on SEC EDGAR →

Cash & Equivalents$899,408
Accounts Receivable$149,855
Inventory$4.91M
Current Liabilities$3.68M
Long-term Debt (?)$841,960
Op. Lease Liability (?)N/A
Finance Lease (?)N/A
Shares Outstanding48.6M

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Historical

PeriodCashARInventoryAPCurr LiabLT DebtOp LeaseFin Lease
2025-12-31$899,408$149,855$4.91MN/A$3.68M$841,960N/AN/A
2025-09-30$463,087$192,479$5.46MN/A$3.99M$921,960N/AN/A
2025-06-30$341,222$159,682$5.51MN/A$4.50M$921,960N/AN/A
2025-03-31$334,726$164,960$6.06MN/A$4.27M$921,960N/AN/A
2024-12-31$1.05M$142,595$7.37MN/A$5.69M$921,960N/AN/A
2024-09-30$1.81M$155,119N/AN/A$5.04M$921,960N/AN/A
2024-06-30$1.87M$144,917N/AN/A$3.78M$921,960N/AN/A
2024-03-31$2.45M$165,403N/AN/A$3.18M$950,990N/AN/A

Comments

SEC Filings

PeriodFormFiledLink
2025-12-31 10-K 2026-04-17 View
2025-09-30 10-Q 2025-11-13 View
2025-06-30 10-Q 2025-08-27 View
2025-03-31 10-Q 2025-05-19 View
2024-12-31 10-K 2025-04-15 View
2024-09-30 10-Q 2024-11-25 View
2024-06-30 10-Q 2024-11-04 View
2024-03-31 10-Q 2024-10-15 View

AI Insights

AI Insight·Generated 2026-05-06

Dream Homes & Development Corp. (DREM) is a small New Jersey-based operative builder operating across custom homes, manufactured home communities, and improved lot sales to national builders. Under a liquidation lens at December 31, 2025, the company shows a negative recovery to equity on a cash/liquid basis (MFFAIS CLV -$2.7M, LLV -$2.6M) and a marginal positive on an operating basis ($2.3M OLV), consistent with the asset composition.

Total assets are $7.2M against total liabilities of $5.5M, producing GAAP equity including NCI of $1.7M. However, liquidation haircuts invert this: inventory at $4.9M is the dominant asset (68% of total assets) and receives a 60% recovery haircut, destroying approximately $2.0M of book value. The company carries no goodwill or identifiable intangibles, so that risk is absent. PP&E net book value of $118K is immaterial.

The liability stack at face value totals $5.5M: current liabilities of $3.7M include accrued interest of $415K, taxes payable of $460K, deposits held of $363K, and related-party loans of $927K. Non-current liabilities are dominated by $1.8M in long-term mortgage principal (net of $243K unamortized discount, so gross face value is $2.1M). A $842K line of credit at 12% adds further fixed-rate pressure. Total mortgage debt (gross) is $2.1M across ABL RPC, Anchor Loans, and AVB Development. Subsequent Event 2 confirms Anchor Loans was retired March 26, 2026 ($493K), reducing the debt stack post-period.

The pending $13.6M Freedom Estates (Gloucester County) ABL facility is a material off-balance-sheet commitment: at December 31, 2025 only $1.0M of the ABL RPC tranche appears on the balance sheet. As draw-downs occur through 2026, the liability side grows materially against inventory that will not be monetized until homes deliver in Q3-Q4 2026 at earliest. This creates a growing liability-to-recoverable-asset mismatch during the construction phase.

Deposits and costs coincident to land acquisition collapsed from $2.8M (12/31/24) to $944K (12/31/25), reflecting conversion of land-phase costs into inventory (Freedom Estates reclassification) and monetization of other deposits. The Berkeley Terrace inventory nearly liquidated ($285K vs. $2.7M prior year) as building pads closed. Lacey Pines inventory declined from $4.4M to $2.5M. Inventories overall fell $2.5M YoY from $7.4M to $4.9M due to lot sales, but the Freedom Estates project added $1.9M of new inventory.

Distributions of $1.97M in 2025 (vs. $628K in 2024) drew down equity despite positive net income, reducing the equity cushion available to absorb liquidation haircuts. The filing notes material internal control weaknesses including lack of a functioning audit committee and insufficient GAAP expertise, which introduces financial reporting risk but does not alter the balance sheet values directly. The filing does not separately XBRL-tag construction contract backlog ($22.2M at 12/31/25) or the Freedom Estates facility commitment beyond the initial draw; both are disclosed in MD&A prose only.

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