Company Quick10K Filing
Sachem Capital
Price4.73 EPS0
Shares22 P/E20
MCap104 P/FCF14
Net Debt-10 EBIT5
TEV94 TEV/EBIT18
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

SACH 10Q Quarterly Report

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

Sachem Capital Earnings 2020-09-30

Balance SheetIncome StatementCash Flow
1108866442202017201820192020
Assets, Equity
3.93.12.31.60.80.02017201820192020
Rev, G Profit, Net Income
151050-5-102017201820192020
Ops, Inv, Fin

0001682220--12-312020Q3falseP1YAccelerated FilerP1YP30D0022117301221173010001682220us-gaap:AdditionalPaidInCapitalMembersach:AtTheMarketOfferingMember2019-07-012019-09-300001682220sach:AtTheMarketOfferingMember2019-07-012019-09-300001682220us-gaap:AdditionalPaidInCapitalMembersach:AtTheMarketOfferingMember2019-01-012019-09-300001682220sach:AtTheMarketOfferingMember2019-01-012019-09-300001682220us-gaap:CommonStockMembersach:AtTheMarketOfferingMember2019-07-012019-09-300001682220us-gaap:AdditionalPaidInCapitalMember2020-07-012020-09-300001682220sach:AccountingAndFinancialServicesMembersach:WifeOfExecutiveOfficerMember2020-01-012020-09-300001682220sach:AccountingAndFinancialServicesMembersach:WifeOfExecutiveOfficerMember2019-01-012019-09-300001682220us-gaap:LandAndBuildingMember2020-01-012020-09-300001682220us-gaap:WarrantMember2019-01-012019-09-300001682220srt:MaximumMember2020-01-272020-01-270001682220us-gaap:UnfundedLoanCommitmentMember2020-09-300001682220us-gaap:DeferredLeaseRevenueMember2020-09-300001682220us-gaap:ResidentialMortgageMember2020-09-300001682220us-gaap:LandMember2020-09-300001682220us-gaap:CommercialLoanMember2020-09-300001682220sach:MixedUseMember2020-09-300001682220us-gaap:ResidentialMortgageMember2019-12-310001682220us-gaap:LandMember2019-12-310001682220us-gaap:CommercialLoanMember2019-12-310001682220sach:MixedUseMember2019-12-310001682220sach:FourteenMortgageLoansMember2020-09-300001682220us-gaap:RetainedEarningsMember2020-09-300001682220us-gaap:CommonStockMember2020-09-300001682220us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2020-09-300001682220us-gaap:AdditionalPaidInCapitalMember2020-09-300001682220us-gaap:RetainedEarningsMember2020-06-300001682220us-gaap:CommonStockMember2020-06-300001682220us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2020-06-300001682220us-gaap:AdditionalPaidInCapitalMember2020-06-300001682220us-gaap:RetainedEarningsMember2019-12-310001682220us-gaap:CommonStockMember2019-12-310001682220us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2019-12-310001682220us-gaap:AdditionalPaidInCapitalMember2019-12-310001682220us-gaap:RetainedEarningsMember2019-09-300001682220us-gaap:CommonStockMember2019-09-300001682220us-gaap:AdditionalPaidInCapitalMember2019-09-300001682220us-gaap:RetainedEarningsMember2019-06-300001682220us-gaap:CommonStockMember2019-06-300001682220us-gaap:AdditionalPaidInCapitalMember2019-06-3000016822202019-06-300001682220us-gaap:RetainedEarningsMember2018-12-310001682220us-gaap:CommonStockMember2018-12-310001682220us-gaap:AdditionalPaidInCapitalMember2018-12-310001682220us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2020-07-012020-09-300001682220us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2020-01-012020-09-300001682220sach:ShareholdersMember2020-09-300001682220sach:ShareholdersMember2019-09-300001682220sach:WellsFargoMember2020-09-300001682220sach:ShareholdersMember2020-07-012020-09-300001682220sach:ShareholdersMember2020-01-012020-09-300001682220sach:ShareholdersMember2019-07-012019-09-300001682220sach:ShareholdersMember2019-01-012019-09-300001682220sach:UnsecuredSubordinatedDebtMember2020-09-300001682220sach:UnsecuredSubordinatedDebtMember2019-12-310001682220sach:UnsecuredUnsubordinatedNotesDueSeptember302025Memberus-gaap:SubsequentEventMember2020-10-310001682220sach:UnsecuredUnsubordinatedNotesDueSeptember302025Member2020-09-300001682220sach:UnsecuredUnsubordinatedNotesDueDecember302024Member2019-11-300001682220sach:UnsecuredUnsubordinatedNotesDueJune302024Member2019-06-300001682220sach:WellsFargoMember2020-09-302020-09-300001682220sach:WellsFargoMember2020-01-012020-09-300001682220us-gaap:CreditConcentrationRiskMember2020-01-012020-09-300001682220sach:MortgageConcentrationRiskMember2020-01-012020-09-300001682220us-gaap:SubsequentEventMember2020-11-042020-11-040001682220us-gaap:WarrantMember2019-09-300001682220us-gaap:CreditConcentrationRiskMember2020-09-3000016822202018-12-310001682220us-gaap:AdditionalPaidInCapitalMember2020-01-012020-09-300001682220srt:MaximumMember2020-09-300001682220us-gaap:AdditionalPaidInCapitalMember2019-07-012019-09-300001682220us-gaap:AdditionalPaidInCapitalMember2019-01-012019-09-300001682220us-gaap:CommonStockMember2019-07-012019-09-3000016822202019-09-300001682220us-gaap:RetainedEarningsMember2020-07-012020-09-300001682220us-gaap:RetainedEarningsMember2020-01-012020-09-300001682220us-gaap:RetainedEarningsMember2019-07-012019-09-300001682220us-gaap:RetainedEarningsMember2019-01-012019-09-300001682220us-gaap:MortgagesMember2020-01-012020-09-300001682220us-gaap:MortgagesMember2019-01-012019-09-300001682220srt:MinimumMember2020-01-012020-09-300001682220srt:MaximumMember2020-01-012020-09-300001682220us-gaap:CommonStockMembersach:AtTheMarketOfferingMember2019-01-012019-09-300001682220us-gaap:CommonStockMember2019-01-012019-09-300001682220us-gaap:FairValueInputsLevel3Member2020-09-300001682220us-gaap:FairValueInputsLevel2Member2020-09-300001682220us-gaap:FairValueInputsLevel1Member2020-09-3000016822202019-12-3100016822202020-06-3000016822202020-07-012020-09-3000016822202019-07-012019-09-3000016822202020-09-3000016822202019-01-012019-09-3000016822202020-11-0500016822202020-01-012020-09-30xbrli:sharesiso4217:USDsach:loanxbrli:puresach:propertyiso4217:USDxbrli:shares

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2020

or

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________________________________________ to _________________________________________

Commission File Number: 001-37997

SACHEM CAPITAL CORP.

(Exact name of registrant as specified in its charter)

New York

81-3467779

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

698 Main Street, Branford, CT 06405

(Address of principal executive offices)

(203) 433-4736

(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.

     Yes     No

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). 

 Yes         No

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 

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). 

     Yes         No

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

 

Ticker symbol(s)

 

Name of each exchange on which registered

Common Shares, par value $.001 per share

 

SACH

 

NYSE American LLC

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 22,124,801 common shares, $0.001 par value per share, outstanding.

Table of Contents

SACHEM CAPITAL CORP.

TABLE OF CONTENTS

Part I

FINANCIAL INFORMATION

Page Number

Item 1.

Financial Statements (unaudited)

Balance Sheets as of September 30, 2020 and December 31, 2019

1

Statements of Comprehensive Income for the Three-Month and Nine-Month Periods Ended September 30, 2020 and 2019

2

Statements of Changes in Shareholders’ Equity for the Three-Month and Nine-Month Periods Ended September 30, 2020 and 2019

3

Statements of Cash Flows for the Nine-Month Periods Ended September 30, 2020 and 2019

5

Notes to Financial Statements (unaudited)

7

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

15

Item 3.

Quantitative and Qualitative Disclosures about Market Risk

23

Item 4.

Controls and Procedures

23

Part II

OTHER INFORMATION

Item 1A.

Risk Factors.

24

Item 6.

Exhibits

25

SIGNATURES

27

EXHIBITS

i

Table of Contents

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

Table of Contents

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

$

5,384,073

$

18,841,937

Investments

27,688,794

15,949,802

Mortgages receivable

 

124,131,879

 

94,348,689

Interest and fees receivable

 

1,551,333

 

1,370,998

Other receivables

 

87,307

 

141,397

Due from borrowers

 

1,501,470

 

840,930

Prepaid expenses

 

106,816

 

24,734

Property and equipment, net

 

1,418,442

 

1,346,396

Deposits on property and equipment

 

172,210

 

71,680

Real estate owned

 

7,523,584

 

8,258,082

Deferred financing costs

 

66,086

 

16,600

Total assets

$

169,631,994

$

141,211,245

Liabilities and Shareholders' Equity

 

  

 

  

Liabilities:

 

  

 

  

Notes payable (net of deferred financing costs of $3,074,115 and $2,687,190)

$

69,452,636

$

55,475,810

Mortgage payable

 

771,785

 

784,081

Line of credit

12,080,569

Accounts payable and accrued expenses

 

522,453

 

249,879

Other loans

257,845

Security deposits held

 

13,416

 

7,800

Advances from borrowers

 

1,413,974

 

848,268

Deferred revenue

 

1,114,721

 

1,205,740

Notes payable

60,130

75,433

Accrued interest

 

80,672

 

3,416

Total liabilities

 

85,768,201

 

58,650,427

Commitments and Contingencies

 

  

 

  

Shareholders’ equity:

 

  

 

  

Preferred shares - $.001 par value; 5,000,000 shares authorized; no shares issued

 

 

Common stock - $.001 par value; 100,000,000 shares authorized; 22,117,301 issued and outstanding

 

22,117

 

22,117

Paid-in capital

 

83,810,276

 

83,856,308

Accumulated other comprehensive loss

(37,596)

(50,878)

Retained earnings (accumulated deficit)

 

68,996

 

(1,266,729)

Total shareholders' equity

 

83,863,793

 

82,560,818

Total liabilities and shareholders' equity

$

169,631,994

$

141,211,245

The accompanying notes are an integral part of these financial statements.

1

Table of Contents

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

$

3,473,304

$

2,442,750

$

9,640,387

$

7,509,155

Interest income on investments

32,483

28,148

163,161

28,148

Gain/(loss)on sale of investment securities

(21,858)

415,301

Origination fees, net

 

393,097

 

497,237

 

1,551,652

 

1,202,777

Late and other fees

 

10,955

 

18,149

 

46,835

 

205,182

Processing fees

 

37,445

 

44,870

 

123,568

 

121,470

Rental income, net

 

9,593

 

9,446

 

49,777

 

82,350

Other income

 

336,789

 

325,523

 

904,071

 

622,054

Net gain on sale of real estate

 

 

12,927

 

 

20,076

Total revenue

 

4,271,808

 

3,379,050

 

12,894,752

 

9,791,212

Operating costs and expenses:

 

  

 

  

 

  

 

  

Interest and amortization of deferred financing costs

 

1,262,278

 

537,878

 

3,564,533

 

1,611,332

Compensation, fees and taxes

496,058

476,404

1,220,412

1,325,822

Stock based compensation

4,107

4,107

12,321

12,327

Professional fees

158,206

105,053

400,868

259,275

Other expenses and taxes

26,247

39,355

61,484

70,683

Exchange fees

22,713

11,343

29,986

32,850

Expense in connection with termination of LOC

779,641

Impairment

495,000

Net loss on sale of real estate

2,816

7,276

Depreciation

 

15,348

 

18,618

 

46,318

 

44,286

General and administrative expenses

 

145,251

 

131,206

 

412,677

 

400,561

Total operating costs and expenses

 

2,133,024

 

1,323,964

 

6,250,875

 

4,536,777

Net income

2,138,784

2,055,086

6,643,877

5,254,435

Other comprehensive income (loss)

Unrealized gain (loss) on investment securities

(72,785)

13,282

Comprehensive income

$

2,065,999

$

2,055,086

$

6,657,159

$

5,254,435

Basic and diluted net income per common share outstanding:

 

  

 

  

 

  

 

  

Basic

$

0.10

$

0.10

$

0.30

$

0.30

Diluted

$

0.10

$

0.10

$

0.30

$

0.30

Weighted average number of common shares outstanding:

 

  

 

  

 

  

 

  

Basic

 

22,117,301

 

21,336,870

 

22,117,301

 

17,662,480

Diluted

 

22,117,301

 

21,336,870

 

22,117,301

 

17,622,480

The accompanying notes are an integral part of these financial statements.

2

Table of Contents

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

 

22,117,301

$

22,117

$

83,806,169

$

35,189

$

584,288

$

84,447,763

Stock based compensation

 

4,107

 

4,107

Unrealized loss on marketable securities

 

(72,785)

 

(72,785)

Dividends paid

(2,654,076)

(2,654,076)

Net income

 

2,138,784

 

2,138,784

Balance, September 30, 2020

 

22,117,301

$

22,117

$

83,810,276

$

(37,596)

$

68,996

$

83,863,793

    

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

 

18,905,586

$

18,906

$

68,658,030

$

$

739,137

$

69,416,073

Sales of stock through ATM

 

866,332

 

866

 

4,375,320

 

4,376,186

Sale of common stock

2,300,000

2,300

10,668,202

10,670,502

Exercise of warrants

16,407

16

82,019

82,035

Stock based compensation

 

4,103

 

4,103

Dividends

 

(2,348,452)

 

(2,348,452)

Net income

 

2,055,086

 

2,055,086

Balance, September 30, 2019

 

22,088,325

$

22,088

$

83,787,674

$

$

445,771

$

84,255,533

The accompanying notes are an integral part of these financial statements.

3

Table of Contents

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

 

22,117,301

$

22,117

$

83,856,308

$

(50,878)

$

(1,280,011)

$

82,547,536

Offering costs-ATM

 

(58,353)

(58,353)

Stock based compensation

12,321

12,321

Unrealized gain on marketable securities

13,282

13,282

Dividends paid

(5,308,152)

(5,308,152)

Net income

6,657,159

6,657,159

Balance, September 30, 2020

 

22,117,301

$

22,117

$

83,810,276

$

(37,596)

$

68,996

$

83,863,793

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

 

15,438,621

$

15,439

$

53,192,859

$

$

(405,483)

$

52,802,815

Sales of stock through ATM

 

4,333,297

 

4,333

19,832,267

 

 

 

19,836,600

Sale of common stock

2,300,000

2,300

10,668,202

10,670,502

Exercise of warrants

16,407

16

82,019

82,035

Stock based compensation

12,327

12,327

Dividends

(4,403,181)

(4,403,181)

Net income

5,254,435

5,254,435

Balance, September 30, 2019

 

22,088,325

$

22,088

$

83,787,674

$

$

445,771

$

84,255,533

The accompanying notes are an integral part of these financial statements.

4

Table of Contents

SACHEM CAPITAL CORP.

STATEMENTS OF CASH FLOW

(unaudited)

Nine Months

Ended September 30, 

2020

    

2019

    

CASH FLOWS FROM OPERATING ACTIVITIES

  

 

  

 

Net income

$

6,643,877

$

5,254,435

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

  

Amortization of deferred financing costs

357,497

159,872

Depreciation expense

 

46,318

 

44,286

Stock based compensation

 

12,321

 

12,327

Impairment loss

495,000

Loss (gain) on sale of real estate

 

7,276

 

(20,076)

Abandonment of office furniture

12,000

Costs in connection with termination of line of credit

439,446

Realized gain on investments

(415,301)

Changes in operating assets and liabilities:

 

 

  

(Increase) decrease in:

 

 

Escrow deposits

 

 

12,813

Interest and fees receivable

 

(180,335)

 

(454,487)

Other receivables

 

54,090

 

(67,237)

Due from borrowers

 

(273,202)

 

2,122,939

Prepaid expenses

 

(82,082)

 

(22,305)

Deposits on property and equipment

(100,530)

(37,881)

(Decrease) increase in:

 

Due to note purchaser

 

 

(176,619)

Accrued interest

 

77,256

 

3,323

Accounts payable and accrued expenses

 

272,574

 

(159,512)

Deferred revenue

 

(91,019)

 

9,261

Advances from borrowers

 

565,706

 

180,889

Total adjustments

 

745,569

 

2,059,039

NET CASH PROVIDED BY OPERATING ACTIVITIES

 

7,389,446

 

7,313,474

CASH FLOWS FROM INVESTING ACTIVITIES

 

  

 

  

Purchase of investments

(37,216,177)

Proceeds from the sale of investments

25,905,769

Proceeds from sale of real estate owned

 

1,816,522

 

362,136

Acquisitions of and improvements to real estate owned

 

(1,584,300)

 

(443,217)

Purchase of property and equipment

 

(118,364)

 

(196,603)

Security deposits held

 

5,616

 

Principal disbursements for mortgages receivable

 

(68,029,798)

 

(42,163,704)

Principal collections on mortgages receivable

 

37,859,270

 

27,917,331

NET CASH USED FOR INVESTING ACTIVITIES

 

(41,361,462)

 

(14,524,057)

CASH FLOWS FROM FINANCING ACTIVITIES

 

  

 

  

Proceeds from line of credit

 

14,080,569

 

42,720,829

Repayment of line of credit

 

(2,000,000)

 

(69,939,952)

Proceeds from notes sold to shareholder

1,017,000

Repayment of notes sold to shareholder

(2,217,000)

Principal payments on mortgage payable

 

(12,296)

 

Principal payments on notes payable

(15,303)

Dividends paid

 

(5,308,152)

 

(7,027,746)

Financing costs incurred

 

(108,353)

 

(6,836)

Proceeds from other loans

257,845

Proceeds from mortgage payable

795,000

Repayment of mortgage payable

(297,837)

Proceeds from notes payable, net

68,634

Proceeds from issuance of common stock

30,736,148

Costs associated with the issuance of common stock

(147,002)

Gross proceeds from issuance of fixed rate notes

14,363,750

23,663,000

Financing costs incurred in connection with fixed rate notes

(743,908)

(1,307,571)

NET CASH PROVIDED BY FINANCING ACTIVITIES

 

20,514,152

 

18,056,667

NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS

 

(13,457,864)

 

10,846,084

CASH AND CASH EQUIVALENTS- BEGINNING OF YEAR

 

18,841,937

 

158,859

CASH AND CASH EQUIVALENTS - END OF PERIOD

$