Price | 4.73 | EPS | 0 | |
Shares | 22 | P/E | 20 | |
MCap | 104 | P/FCF | 14 | |
Net Debt | -10 | EBIT | 5 | |
TEV | 94 | TEV/EBIT | 18 | TTM 2019-09-30, in MM, except price, ratios |
10-Q | 2020-09-30 | Filed 2020-11-06 |
10-Q | 2020-06-30 | Filed 2020-08-10 |
10-Q | 2020-03-31 | Filed 2020-05-08 |
10-K | 2019-12-31 | Filed 2020-03-30 |
10-Q | 2019-09-30 | Filed 2019-11-14 |
10-Q | 2019-06-30 | Filed 2019-08-14 |
10-Q | 2019-03-31 | Filed 2019-05-13 |
10-K | 2018-12-31 | Filed 2019-03-29 |
10-Q | 2018-09-30 | Filed 2018-11-13 |
10-Q | 2018-06-30 | Filed 2018-08-14 |
10-Q | 2018-03-31 | Filed 2018-05-15 |
10-K | 2017-12-31 | Filed 2018-04-02 |
10-Q | 2017-09-30 | Filed 2017-11-13 |
10-Q | 2017-06-30 | Filed 2017-08-15 |
10-Q | 2017-03-31 | Filed 2017-05-22 |
10-K | 2016-12-31 | Filed 2017-04-07 |
8-K | 2020-11-09 | |
8-K | 2020-09-04 | |
8-K | 2020-08-26 | |
8-K | 2020-08-10 | |
8-K | 2020-05-08 | |
8-K | 2020-03-30 | |
8-K | 2019-12-11 | |
8-K | 2019-11-21 | |
8-K | 2019-11-20 | |
8-K | 2019-11-14 | |
8-K | 2019-10-31 | |
8-K | 2019-10-31 | |
8-K | 2019-10-30 | |
8-K | 2019-10-03 | |
8-K | 2019-09-05 | |
8-K | 2019-08-14 | |
8-K | 2019-07-24 | |
8-K | 2019-06-28 | |
8-K | 2019-06-21 | |
8-K | 2019-06-20 | |
8-K | 2019-05-13 | |
8-K | 2019-05-02 | |
8-K | 2019-04-10 | |
8-K | 2019-04-01 | |
8-K | 2018-12-12 | |
8-K | 2018-11-13 | |
8-K | 2018-11-09 | |
8-K | 2018-10-18 | |
8-K | 2018-08-16 | |
8-K | 2018-08-13 | |
8-K | 2018-05-24 | |
8-K | 2018-05-15 | |
8-K | 2018-01-18 |
Part I. Financial Information |
Item 1. Financial Statements |
Item 2.Management's Discussion and Analysis of Financial Condition and Results of Operations |
Item 3.Quantitative and Qualitative Disclosures About Market Risk |
Item 4.Controls and Procedures |
Part II. Other Information |
Item 1A. Risk Factors. |
Item 6.Exhibits |
EX-31.1 | sach-20200930xex31d1.htm |
EX-31.2 | sach-20200930xex31d2.htm |
EX-32.1 | sach-20200930xex32d1.htm |
Balance Sheet | Income Statement | Cash Flow |
---|---|---|
Assets, Equity
|
Rev, G Profit, Net Income
|
Ops, Inv, Fin
|
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
(Mark One)
For the quarterly period ended
or
For the transition period from ________________________________________ to _________________________________________
Commission File Number:
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
(Address of principal executive offices)
(
(Registrant’s telephone number, including area code)
(Former name, former address and former fiscal year, if changed since last report)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
☒
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
☒
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer ☐ | ☒ |
Non-accelerated filer ☐ | Smaller reporting company |
Emerging growth company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
| Ticker symbol(s) |
| Name of each exchange on which registered |
|
| |||
7.125% Notes due 2024 | SCCB | NYSE American LLC | ||
6.875% Notes due 2024 | SACC | NYSE American LLC | ||
7.75% Notes due 2025 | SCCC | NYSE American LLC |
As of November 5, 2020, the Issuer had a total of
SACHEM CAPITAL CORP.
TABLE OF CONTENTS
Part I | FINANCIAL INFORMATION | |
Page Number | ||
Balance Sheets as of September 30, 2020 and December 31, 2019 | 1 | |
2 | ||
3 | ||
Statements of Cash Flows for the Nine-Month Periods Ended September 30, 2020 and 2019 | 5 | |
7 | ||
Management’s Discussion and Analysis of Financial Condition and Results of Operations | 15 | |
23 | ||
23 | ||
24 | ||
25 | ||
27 | ||
EXHIBITS |
i
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This quarterly report on Form 10-Q includes forward-looking statements. All statements other than statements of historical facts contained in this report, including statements regarding our future results of operations and financial position, strategy and plans, and our expectations for future operations, are forward-looking statements. The words “anticipate,” “estimate,” “expect,” “project,” “plan,” “seek,” “intend,” “believe,” “may,” “might,” “will,” “should,” “could,” “likely,” “continue,” “design,” and the negative of such terms and other words and terms of similar expressions are intended to identify forward-looking statements.
We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, strategy, short-term and long-term business operations and objectives and financial needs. These forward-looking statements are subject to a number of risks, uncertainties and assumptions. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this report may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements.
You should not rely upon forward-looking statements as predictions of future events. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance or achievements. In addition, neither we nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. We disclaim any duty to update any of these forward-looking statements after the date of this report to confirm these statements in relationship to actual results or revised expectations.
All forward-looking statements attributable to us are expressly qualified in their entirety by these cautionary statements as well as others made in this report. You should evaluate all forward-looking statements made by us in the context of these risks and uncertainties.
Unless the context otherwise requires, all references in this quarterly report on Form 10-Q to “Sachem Capital,” “we,” “us” and “our” refer to Sachem Capital Corp., a New York corporation.
ii
PART I. FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS
SACHEM CAPITAL CORP.
BALANCE SHEETS
September 30, 2020 | December 31, 2019 | ||||||
| (Unaudited) |
| (Audited) | ||||
Assets |
|
|
|
| |||
Assets: |
|
|
|
| |||
Cash and cash equivalents | $ | | $ | | |||
Investments | | | |||||
Mortgages receivable |
| |
| | |||
Interest and fees receivable |
| |
| | |||
Other receivables |
| |
| | |||
Due from borrowers |
| |
| | |||
Prepaid expenses |
| |
| | |||
Property and equipment, net |
| |
| | |||
Deposits on property and equipment |
| |
| | |||
Real estate owned |
| |
| | |||
Deferred financing costs |
| |
| | |||
Total assets | $ | | $ | | |||
Liabilities and Shareholders' Equity |
|
|
|
| |||
Liabilities: |
|
|
|
| |||
Notes payable (net of deferred financing costs of $ | $ | | $ | | |||
Mortgage payable |
| |
| | |||
Line of credit | | | |||||
Accounts payable and accrued expenses |
| |
| | |||
Other loans | | | |||||
Security deposits held |
| |
| | |||
Advances from borrowers |
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| | ||||
Deferred revenue |
| |
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Notes payable | | | |||||
Accrued interest |
| |
| | |||
Total liabilities |
| |
| | |||
Commitments and Contingencies |
|
|
|
| |||
Shareholders’ equity: |
|
|
|
| |||
Preferred shares - $ |
| |
| | |||
Common stock - $ |
| |
| | |||
Paid-in capital |
| |
| | |||
Accumulated other comprehensive loss | ( | ( | |||||
Retained earnings (accumulated deficit) |
| |
| ( | |||
Total shareholders' equity |
| |
| | |||
Total liabilities and shareholders' equity | $ | | $ | |
The accompanying notes are an integral part of these financial statements.
1
SACHEM CAPITAL CORP.
STATEMENTS OF COMPREHENSIVE INCOME
(unaudited)
Three Months Ended | Nine Months | ||||||||||||
September 30, | Ended September 30, | ||||||||||||
2020 |
| 2019 | 2020 |
| 2019 | ||||||||
Revenue: |
|
|
|
|
|
|
| ||||||
Interest income from loans | $ | | $ | | $ | | $ | | |||||
Interest income on investments | | | | | |||||||||
Gain/(loss)on sale of investment securities | ( | | | | |||||||||
Origination fees, net |
| |
| |
| |
| | |||||
Late and other fees |
| |
| |
| |
| | |||||
Processing fees |
| |
| |
| |
| | |||||
Rental income, net |
| |
| |
| |
| | |||||
Other income |
| |
| |
| |
| | |||||
Net gain on sale of real estate |
| |
| |
| |
| | |||||
Total revenue |
| |
| |
| |
| | |||||
Operating costs and expenses: |
|
|
|
|
|
|
|
| |||||
Interest and amortization of deferred financing costs |
| |
| |
| |
| | |||||
Compensation, fees and taxes | | | | | |||||||||
Stock based compensation | | | | | |||||||||
Professional fees | | | | | |||||||||
Other expenses and taxes | | | | | |||||||||
Exchange fees | | | | | |||||||||
Expense in connection with termination of LOC | | | | | |||||||||
Impairment | | | | | |||||||||
Net loss on sale of real estate | | | | | |||||||||
Depreciation |
| |
| |
| |
| | |||||
General and administrative expenses |
| |
| |
| |
| | |||||
Total operating costs and expenses |
| |
| |
| |
| | |||||
Net income | | | | | |||||||||
Other comprehensive income (loss) | |||||||||||||
Unrealized gain (loss) on investment securities | ( | | | | |||||||||
Comprehensive income | $ | | $ | | $ | | $ | | |||||
Basic and diluted net income per common share outstanding: |
|
|
|
|
|
|
|
| |||||
Basic | $ | | $ | | $ | | $ | | |||||
Diluted | $ | | $ | | $ | | $ | | |||||
Weighted average number of common shares outstanding: |
|
|
|
|
|
|
|
| |||||
Basic |
| |
| |
| |
| | |||||
Diluted |
| |
| |
| |
| |
The accompanying notes are an integral part of these financial statements.
2
SACHEM CAPITAL CORP.
STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
(unaudited)
| FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2020 |
|
| ||||||||||||||
Accumulated | (Accumulated | ||||||||||||||||
Additional | Other | Deficit) | |||||||||||||||
| Common |
| Paid in |
| Comprehensive |
| Retained | ||||||||||
| Shares |
| Amount |
| Capital |
| Income/(Loss) |
| Earnings |
| Totals | ||||||
Balance, July 1, 2020 |
| | $ | | $ | | $ | | $ | | $ | | |||||
Stock based compensation | — |
| — | | — | — |
| | |||||||||
Unrealized loss on marketable securities | — | — | — |
| ( | — |
| ( | |||||||||
Dividends paid | — | — | — | — | ( | ( | |||||||||||
Net income | — | — | — | — |
| |
| | |||||||||
Balance, September 30, 2020 |
| | $ | | $ | | $ | ( | $ | | $ | |
| FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2019 |
|
| ||||||||||||||
Accumulated | (Accumulated | ||||||||||||||||
Additional | Other | Deficit) | |||||||||||||||
Common | Paid in | Comprehensive | Retained | ||||||||||||||
| Shares |
| Amount |
| Capital |
| Income/(Loss) |
| Earnings |
| Totals | ||||||
Balance, July 1, 2019 |
| | $ | | $ | | $ | — | $ | | $ | | |||||
Sales of stock through ATM |
| |
| |
| | — | — |
| | |||||||
Sale of common stock | | | | — | — | | |||||||||||
Exercise of warrants | | | | — | — | | |||||||||||
Stock based compensation | — | — |
| | — | — |
| | |||||||||
Dividends | — | — | — | — |
| ( |
| ( | |||||||||
Net income | — | — | — | — |
| |
| | |||||||||
Balance, September 30, 2019 |
| | $ | | $ | | $ | — | $ | | $ | |
The accompanying notes are an integral part of these financial statements.
3
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2020 | |||||||||||||||||
Accumulated | (Accumulated | ||||||||||||||||
Additional | Other | Deficit) | |||||||||||||||
Common | Paid in | Comprehensive | Retained | ||||||||||||||
| Shares |
| Amount |
| Capital |
| Income/(Loss) |
| Earnings |
| Totals | ||||||
Balance, January 1, 2020 |
| | $ | | $ | | $ | ( | $ | ( | $ | | |||||
Offering costs-ATM |
| — | — | ( | — | — | ( | ||||||||||
Stock based compensation | — | — | | — | — | | |||||||||||
Unrealized gain on marketable securities | — | — | — | | — | | |||||||||||
Dividends paid | — | — | — | — | ( | ( | |||||||||||
Net income | — | — | — | — | | | |||||||||||
Balance, September 30, 2020 |
| | $ | | $ | | $ | ( | $ | | $ | |
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2019 | |||||||||||||||||
Accumulated | (Accumulated | ||||||||||||||||
Additional | Other | Deficit) | |||||||||||||||
Common | Paid in | Comprehensive | Retained | ||||||||||||||
| Shares |
| Amount |
| Capital |
| Income/(Loss) |
| Earnings |
| Totals | ||||||
Balance, January 1, 2019 |
| | $ | | $ | | $ | — | $ | ( | $ | | |||||
Sales of stock through ATM |
| 4,333,297 |
| | |
| — |
| — |
| | ||||||
Sale of common stock | | | | — | — | | |||||||||||
Exercise of warrants | | | | — | — | | |||||||||||
Stock based compensation | — | — | | — | — | | |||||||||||
Dividends | — | — | — | — | ( | ( | |||||||||||
Net income | — | — | — | — | | | |||||||||||
Balance, September 30, 2019 |
| | $ | | $ | | $ | — | $ | | $ | |
The accompanying notes are an integral part of these financial statements.
4
SACHEM CAPITAL CORP.
STATEMENTS OF CASH FLOW
(unaudited)
Nine Months | |||||||
Ended September 30, | |||||||
2020 |
| 2019 |
| ||||
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
| |||
Net income | $ | | $ | | |||
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
| ||||
Amortization of deferred financing costs | | | |||||
Depreciation expense |
| |
| | |||
Stock based compensation |
| |
| | |||
Impairment loss | | | |||||
Loss (gain) on sale of real estate |
| |
| ( | |||
Abandonment of office furniture | | | |||||
Costs in connection with termination of line of credit | | ||||||
Realized gain on investments | ( | | |||||
Changes in operating assets and liabilities: |
|
|
| ||||
(Increase) decrease in: |
|
| |||||
Escrow deposits |
| |
| | |||
Interest and fees receivable |
| ( |
| ( | |||
Other receivables |
| |
| ( | |||
Due from borrowers |
| ( |
| | |||
Prepaid expenses |
| ( |
| ( | |||
Deposits on property and equipment | ( | ( | |||||
(Decrease) increase in: |
| ||||||
Due to note purchaser |
| |
| ( | |||
Accrued interest |
| |
| | |||
Accounts payable and accrued expenses |
| |
| ( | |||
Deferred revenue |
| ( |
| | |||
Advances from borrowers |
| |
| | |||
Total adjustments |
| |
| | |||
NET CASH PROVIDED BY OPERATING ACTIVITIES |
| |
| | |||
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
| |||
Purchase of investments | ( | | |||||
Proceeds from the sale of investments | | | |||||
Proceeds from sale of real estate owned |
| |
| | |||
Acquisitions of and improvements to real estate owned |
| ( |
| ( | |||
Purchase of property and equipment |
| ( |
| ( | |||
Security deposits held |
| |
| | |||
Principal disbursements for mortgages receivable |
| ( |
| ( | |||
Principal collections on mortgages receivable |
| |
| | |||
NET CASH USED FOR INVESTING ACTIVITIES |
| ( |
| ( | |||
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
| |||
Proceeds from line of credit |
| |
| | |||
Repayment of line of credit |
| ( |
| ( | |||
Proceeds from notes sold to shareholder | | | |||||
Repayment of notes sold to shareholder | | ( | |||||
Principal payments on mortgage payable |
| ( |
| | |||
Principal payments on notes payable | ( | | |||||
Dividends paid |
| ( |
| ( | |||
Financing costs incurred |
| ( |
| ( | |||
Proceeds from other loans | | | |||||
Proceeds from mortgage payable | | | |||||
Repayment of mortgage payable | | ( | |||||
Proceeds from notes payable, net | | | |||||
Proceeds from issuance of common stock | | | |||||
Costs associated with the issuance of common stock | | ( | |||||
Gross proceeds from issuance of fixed rate notes | | | |||||
Financing costs incurred in connection with fixed rate notes | ( | ( | |||||
NET CASH PROVIDED BY FINANCING ACTIVITIES |
| |
| | |||
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS |
| ( |
| | |||
CASH AND CASH EQUIVALENTS- BEGINNING OF YEAR |
| |
| | |||
CASH AND CASH EQUIVALENTS - END OF PERIOD | $ |