Press Releases

Manhattan Bridge Capital, Inc. Reports First Quarter Results 45% Increase in Income from Operations

Date: May 6, 2010Â Source: Manhattan Bridge Capital, Inc.Â Contact: Assaf Ran, CEOÂ (516) 444-3400

NEW YORK, N.Y. May 6, 2010 / GLOBE Newswire / -- Manhattan Bridge Capital, Inc. (NASDAQ: LOAN)

Manhattan Bridge Capital, Inc. announced today that total revenues for the three month period ended March 31, 2010 were approximately $291,000 compared to approximately $232,000 for the three month period ended March 31, 2009 an increase of $59,000 or 25%. In 2010, $236,000 of the Company’s revenue represented interest income on the short term secured commercial loans that the Company offers to small businesses compared to $194,000 for the same period in 2009, and $55,000 represents origination fees on such loans compared to $38,000 for the same period in 2009. The increase in revenue represents an increase in lending operations.

Income from operations for the period ended March 31, 2010 was approximately $144,000 compared to approximately $99,000 for the three month period ended March 31, 2009, an increase of $45,000 or 45%. This increase in income from operations resulted mainly from an increase in revenue from short term secured commercial loans of $59,000, offset by an increase in operating costs and expenses of $14,000.

Net income for the three month period ended March 31, 2010 was $0.04 per basic and diluted share (based on 3.324 million shares and 3,365 million shares, respectively ), or $140,592 versus net income of 0.03 per basic and diluted share (based on 3.326 million shares) or $85,609 for the period ended March 31, 2009, an increase of approximately $55,000. This increase in net income is mainly due to increases in revenue and other income offset by increases in operating costs and expenses and income tax expense.

As of March 31, 2010 total shareholders' equity was $7,582,000 compared to $7,455,000 as of December 31, 2009, an increase of $127,000.

Assaf Ran, Chairman of the Board and CEO stated, “I am pleased with the continued growth pattern that started three years ago. It seems that our model and disciplined expectations are passing the reality test. I am optimistic about our future growth as I feel that our market is reviving.”

Manhattan Bridge Capital, Inc., provides short term, secured, non-banking, commercial loans to
small businesses. We operate the web site: http://www.manhattanbridgecapital.com

This report contains forward-looking statements within the meaning of section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements are typically identified by the words “believe,” “expect,” “intend,” “estimate” and similar expressions. Those statements appear in a number of places in this report and include statements regarding our intent, belief or current expectations or those of our directors or officers with respect to, among other things, trends affecting our financial conditions and results of operations and our business and growth strategies. These forward-looking statements are not guarantees of future performance and involve risks and uncertainties. Actual results may differ materially from those projected, expressed or implied in the forward-looking statements as a result of various factors (such factors are referred to herein as “Cautionary Statements”), including but not limited to the following: (i) the successful integration of new businesses that we may acquire; (ii) the success of new operations which we have commenced and of our new business strategy; (iii) our limited operating history in our new business; (iv) potential fluctuations in our quarterly operating results; and (v) challenges facing us relating to our growth. The accompanying information contained in this report, including the information set forth under “Management’s Discussion and Analysis of Financial Condition and Results of Operations”, identifies important factors that could cause such differences. These forward-looking statements speak only as of the date of this report, and we caution potential investors not to place undue reliance on such statements. We undertake no obligation to update or revise any forward-looking statements. All subsequent written or oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the Cautionary Statements.

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

Assets	March 31, 2010 (unaudited)	December 31, 2009 (audited)
Current assets:
Cash and cash equivalents	$111,508	$707,449
Investment in marketable securities	172,803	404,268
Total cash and cash equivalents and investment in marketable securities	284,311	1,111,717

Short term loans	7,881,700	6,476,621
Interest receivable on short term loans	60,001	60,207
Other current assets	16,768	26,568
Total current assets	8,242,780	7,675,113

Property and equipment, net	4,700	5,458
Security deposit	17,515	17,515
Investment in privately held company, at cost	100,000	100,000
Total assets	$8,364,995	$7,798,086

Liabilities and Shareholders’ Equity

Current liabilities:
Lines of credit	$458,434	$ ---
Accounts payable and accrued expenses	110,009	$77,768
Deferred origination fees	90,534	102,751
Income taxes payable	123,742	162,182
Total liabilities, all current	782,719	342,701
Commitments and contingencies
Shareholders’ equity:
Preferred shares - $.01 par value; 5,000,000 shares authorized; no shares issued	---	---
Common shares - $.001 par value; 25,000,000 authorized; 3,405,190 issued and 3,324,459 outstanding	3,405	3,405
Additional paid-in capital	9,486,370	9,476,762
Treasury stock, at cost- 80,731 shares	(241,400)	(241,400)
Accumulated other comprehensive income	100,514	123,823
Accumulated deficit	(1,766,613)	(1,907,205)
Total shareholders’ equity	7,582,276	7,455,385
Total liabilities and shareholders’ equity	$8,364,995	$7,798,086

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

	Three Months Ended March 31,
	2010	2009


Interest income from short term loans	$236,203	$193,698
Origination fees	54,971	38,279
Total Revenue	291,174	231,977
Operating costs and expenses:
Interest expense on lines of credit used	5,134	---
General and administrative expenses	142,078	133,263
Total operating costs and expenses	147,212	133,263

Income from operations	143,962	98,714

Interest and dividend income	3,344	9,224
Realized gain on marketable securities that were previously marked down	55,286	---
Total other income	58,630	9,224

Income from operations before income tax expense	202,592	107,938
Income tax expense	(62,000)	(22,329)
Net Income	$140,592	$85,609

Basic and diluted net income per common share outstanding:


Weighted average number of common shares outstanding:
--Basic	3,324,459	3,325,760
--Diluted	3,365,239	3,325,760

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)

Three Months ended March 31,	2010	2009

Cash flows from operating activities:
Net Income	$140,592	$85, 609
Adjustments to reconcile net income to net cash provided by operating activities -
Depreciation	758	1,222
Non cash compensation expense	9,608	14,983
Realized gain on sale of marketable securities that were previously marked down	(55,286)	----
Changes in operating assets and liabilities:
Interest receivable on short and long term commercial loans	206	12,304
Other current and non current assets	9,800	(17,165)
Accounts payable and accrued expenses	32,241	10,117
Deferred origination fees	(12,217)	(1,159)
Income tax payable	(38,440)	14,004
Net cash provided by operating activities	87,262	119,915

Cash flows from investing activities:
Proceeds from sale of marketable securities	263,442	----
Short term commercial loans made	(2,149,000)	(1,785,529)
Collections received from short term commercial loans	743,921	1,298,709
Net cash used in investing activities	(1,141,637)	(486,820)

Cash flows from financing activities:
Proceeds from lines of credit, net	458,434	----
Net cash provided by financing activities	458,434	----

Net decrease in cash and cash equivalents	(595,941)	(366,905)
Cash and cash equivalents, beginning of period	707,449	884,296
Cash and cash equivalents, end of period	$111,508	$517,391

Supplemental Cash Flow Information:
Taxes paid during the period	$100,440	$8,325
Interest Paid during the period	$5,134	$----