|
New York
|
| |
81-3467779
|
|
|
State or other jurisdiction of
incorporation or organization |
| |
(I.R.S. Employer
Identification No.) |
|
|
Title of each class
|
| |
Trading 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
|
|
| Large accelerated filer ☐ | | | Accelerated filer ☒ | |
| Non-accelerated filer ☐ | | | Smaller Reporting Company ☒ | |
| | | | Emerging growth company ☒ | |
| | |
Page
|
| |||
PART I | | | | | | | |
| | | | 1 | | | |
| | | | 12 | | | |
| | | | 30 | | | |
| | | | 30 | | | |
| | | | 30 | | | |
| | | | 30 | | | |
PART II | | | | | | | |
| | | | 31 | | | |
| | | | 32 | | | |
| | | | 32 | | | |
| | | | 42 | | | |
| | | | 42 | | | |
| | | | 42 | | | |
| | | | 42 | | | |
| | | | 43 | | | |
PART III | | | | | | | |
| | | | 44 | | | |
| | | | 46 | | | |
| | | | 49 | | | |
| | | | 52 | | | |
| | | | 52 | | | |
| | | | 54 | | | |
| | | | 54 | | | |
| | | | 55 | | | |
| | | | 56 | | |
Amount
|
| |
Number of
Loans |
| |
Aggregate
Principal Amount |
| ||||||
$100,000 or less
|
| | | | 144 | | | | | $ | 9,635,369 | | |
$100,001 to $250,000
|
| | | | 188 | | | | | | 29,811,738 | | |
$250,001 to $500,000
|
| | | | 76 | | | | | | 25,796,770 | | |
$500,001 to $1,000,000
|
| | | | 16 | | | | | | 10,878,157 | | |
Over $1,000,000
|
| | | | 14 | | | | | | 18,226,655 | | |
Total
|
| | | | 438 | | | | | $ | 94,348,689 | | |
| | |
Year Ended
December 31, |
| |||||||||
| | |
2018
|
| |
2019
|
| ||||||
Loans originated
|
| | | $ | 42,078,191 | | | | | $ | 64,742,552 | | |
Loans repaid
|
| | | $ | 24,641,469 | | | | | $ | 43,347,362 | | |
Mortgage lending revenues
|
| | | $ | 10,768,302 | | | | | $ | 11,848,873 | | |
Mortgage lending expenses
|
| | | $ | 3,390,718 | | | | | $ | 5,041,609 | | |
Number of loans outstanding
|
| | | | 403 | | | | | | 438 | | |
Principal amount of loans earning interest
|
| | | $ | 78,891,110 | | | | | $ | 94,348,689 | | |
Average outstanding loan balance
|
| | | $ | 195,760 | | | | | $ | 215,408 | | |
Weighted average contractual interest rate(1)
|
| | | | 12.85% | | | | | | 12.42% | | |
Weighted average term to maturity (in months)(2)
|
| | | | 11 | | | | | | 10 | | |
Year of Origination
|
| |
Number of
Loans |
| |
Aggregate
Principal Amount |
| ||||||
2019
|
| | | | 211 | | | | | $ | 50,383,350 | | |
2018
|
| | | | 98 | | | | | | 18,799,830 | | |
2017
|
| | | | 69 | | | | | | 15,430,404 | | |
2016
|
| | | | 30 | | | | | | 4,939,518 | | |
2015
|
| | | | 21 | | | | | | 3,395,115 | | |
2014 and prior
|
| | | | 9 | | | | | | 1,400,472 | | |
Total
|
| | | | 438 | | | | | $ | 94,348,689 | | |
| | |
At December 31,
|
| |||||||||
| | |
2018
|
| |
2019
|
| ||||||
Developer – Residential Mortgages
|
| | | $ | 52,980,472 | | | | | $ | 71,605,920 | | |
Developer – Commercial Mortgages
|
| | | | 19,250,618 | | | | | | 16,122,990 | | |
Land Mortgages
|
| | | | 5,638,113 | | | | | | 5,639,979 | | |
Mixed Use
|
| | | | 1,021,907 | | | | | | 979,800 | | |
Total Mortgages Receivable
|
| | | $ | 78,891,110 | | | | | $ | 94,348,689 | | |
|
| | |
For the Years Ended December 31,
|
| |||||||||||||||||||||||||||||||||
| | |
2018
|
| |
2019
|
| ||||||||||||||||||||||||||||||
| | |
# of Loans
|
| |
Interest Earned
|
| |
%
|
| |
# of Loans
|
| |
Interest Earned
|
| |
%
|
| ||||||||||||||||||
Residential
|
| | | | 321 | | | | | $ | 6,017,811 | | | | | | 67.2 | | | | | | 351 | | | | | $ | 7,401,076 | | | | | | 75.9 | | |
Commercial
|
| | | | 58 | | | | | | 2,186,590 | | | | | | 24.4 | | | | | | 64 | | | | | | 1,666,447 | | | | | | 17.1 | | |
Land Mortgages
|
| | | | 19 | | | | | | 640,408 | | | | | | 7.1 | | | | | | 16 | | | | | | 582,939 | | | | | | 6.0 | | |
Mixed Use
|
| | | | 5 | | | | | | 116,074 | | | | | | 1.3 | | | | | | 7 | | | | | | 101,271 | | | | | | 1.0 | | |
Total
|
| | | | 403 | | | | | $ | 8,960,883 | | | | | | 100.0 | | | | | | 438 | | | | | $ | 9,751,733 | | | | | | 100.0 | | |
Sources of Capital:
|
| | | | | | |
Debt: | | | | | | | |
Bonds payable
|
| | | $ | 55,475,810 | | |
Mortgage payable
|
| | | | 784,081 | | |
Total debt
|
| | | | 56,259,891 | | |
Other liabilities
|
| | | | 2,390,536 | | |
Total liabilities
|
| | | | 58,650,427 | | |
Capital (equity)
|
| | | | 82,560,818 | | |
Total sources of capital
|
| | | $ | 141,211,245 | | |
Assets: | | | | | | | |
Cash and short-term marketable securities
|
| | | $ | 34,791,739 | | |
Mortgages receivable
|
| | | | 94,368,689 | | |
Other assets
|
| | | | 12,050,817 | | |
Total assets
|
| | | $ | 141,211,245 | | |
Payment Date
|
| |
Amount
Per Share |
| |||
2020 | | | | | | | |
January 27 | | | | $ | 0.12 | | |
2019 | | | | | | | |
October 22
|
| | | $ | 0.12 | | |
July 29
|
| | | $ | 0.12 | | |
April 18
|
| | | $ | 0.12 | | |
January 10* | | | | $ | 0.17 | | |
2018 | | | | | | | |
November 6
|
| | | $ | 0.12 | | |
July 27
|
| | | $ | 0.11 | | |
April 27** | | | | $ | 0.105 | | |
February 27*** | | | | $ | 0.105 | | |
Payment Date
|
| |
Amount
Per Share |
| |||
2017 | | | | | | | |
November 17
|
| | | $ | 0.105 | | |
July 27
|
| | | $ | 0.105 | | |
April 27
|
| | | $ | 0.05 | | |
| | |
Total
|
| |
Less than
1 year |
| |
1 – 3
years |
| |
3 – 5
years |
| |
More than
5 years |
| |||||||||||||||
Operating lease obligations
|
| | | $ | 10,919 | | | | | $ | 2,888 | | | | | $ | 7,312 | | | | | $ | 719 | | | | | $ | — | | |
Unfunded portions of outstanding construction loans
|
| | | | 6,617,459 | | | | | | 6,617,459 | | | | | | — | | | | | | — | | | | | | — | | |
Unfunded loan commitments
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total contractual obligations
|
| | | $ | 6,628,378 | | | | | $ | 6,620,347 | | | | | $ | 7,312 | | | | | $ | 719 | | | | | $ | — | | |
Name
|
| |
Age
|
| |
Position
|
|
John L. Villano | | |
59
|
| | Chairman, Chief Executive Officer, Chief Financial Officer President and Treasurer | |
Leslie Bernhard(1, 2) | | |
76
|
| | Director | |
Arthur L. Goldberg(1, 3) | | |
81
|
| | Director | |
Brian A. Prinz(1, 4) | | |
67
|
| | Director | |
Name and Principal Position
|
| |
Year
|
| |
Salary
|
| |
Bonus
|
| |
Total
|
| ||||||||||||
| | | | | | | | |
($)
|
| |
($)
|
| |
($)
|
| |||||||||
John L. Villano
Chairman, Chief Executive Officer, President, Chief Financial Officer and Treasurer |
| | | | 2019 | | | | | $ | 360,000 | | | | | | — | | | | | $ | 360,000 | | |
| | | 2018 | | | | | $ | 310,500 | | | | | | — | | | | | $ | 310,500 | | | ||
Jeffrey C. Villano*
Co-Chief Executive Officer, President, Treasurer and Director |
| | | | 2019 | | | | | $ | 325,385 | | | | | | — | | | | | $ | 325,385 | | |
| | | 2018 | | | | | $ | 310,500 | | | | | | — | | | | | $ | 310,500 | | |
Name
|
| |
Fees Earned or Paid
in Cash ($) |
| |
Stock Awards
($)(1) |
| |
Total
($) |
| |||||||||
Leslie Bernhard
|
| | | $ | 22,825 | | | | | $ | 10,470 | | | | | $ | 33,295 | | |
Arthur L. Goldberg
|
| | | $ | 25,375 | | | | | $ | 10,470 | | | | | $ | 35,845 | | |
Brian A. Prinz
|
| | | $ | 23,250 | | | | | $ | 10,470 | | | | | $ | 33,295 | | |
Name of Beneficial Owner(1)
|
| |
Number of Common
Shares Beneficially Owned(2) |
| |
Percentage of
Class(3) |
| ||||||
Executive Officers and Directors | | | | | | | | | | | | | |
John L. Villano(4)
|
| | | | 1,247,396 | | | | | | 5.64% | | |
Leslie Bernhard
|
| | | | 5,404 | | | | | | * | | |
Arthur L. Goldberg
|
| | | | 15,128 | | | | | | * | | |
Brian A. Prinz
|
| | | | 355,511 | | | | | | 1.61% | | |
All officers and directors as a group (4 persons)(5)
|
| | | | 1,623,439 | | | | | | 7.34% | | |
Greater than 5% Shareholders | | | | | | | | | | | | | |
Jeffrey C. Villano(6)
|
| | | | 1,753,722 | | | | | | 7.93% | | |
Plan category
|
| |
Number of securities
to be issued upon exercise of outstanding options, warrants and rights |
| |
Weighted-average
exercise price of outstanding options, warrants and rights |
| |
Number of securities
remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a) |
| |||||||||
| | | | | (a) | | | | | | (b) | | | | | | (c) | | |
Equity compensation plans approved by security holders
|
| |
0
|
| |
Not applicable
|
| |
1,469,616
|
| |||||||||
Total
|
| |
0
|
| |
Not applicable
|
| |
1,469,616
|
|
| | |
2019
|
| |
2018
|
| ||||||
Audit fees*
|
| | | $ | 168,000 | | | | | $ | 111,800 | | |
Audit related fees
|
| | |
|
—
|
| | | |
|
—
|
| |
Tax fees
|
| | |
|
—
|
| | | |
|
—
|
| |
All other fees
|
| | |
|
—
|
| | | |
|
—
|
| |
Total fees
|
| | | $ | 168,000 | | | | | $ | 111,800 | | |
(a) |
1. |
Financial Statements — See Index to Financial Statements on page F-1. |
|
Exhibit
No. |
| |
Description
|
|
| 31.1 | | | | |
| 31.2 | | | | |
| 32.1 | | | Chief Executive Officer Certification pursuant to 18 U.S.C. section 1350 as adopted pursuant to section 906 of the Sarbanes Oxley Act *** | |
| 32.2 | | | Chief Financial Officer Certification pursuant to 18 U.S.C. section 1350 as adopted pursuant to section 906 of the Sarbanes Oxley Act *** | |
| 101.INS | | | XBRL Instance Document * | |
| 101.SCH | | | XBRL Taxonomy Extension Schema Document * | |
| 101.CAL | | | XBRL Taxonomy Extension Calculation Linkbase Document * | |
| 101.DEF | | | XBRL Taxonomy Extension Definition Linkbase Document * | |
| 101.LAB | | | XBRL Taxonomy Extension Label Linkbase Document * | |
| 101.PRE | | | XBRL Taxonomy Extension Presentation Linkbase Document * | |
|
Signature
|
| |
Title
|
|
|
/s/ John L. Villano
John L. Villano, CPA
|
| | Chairman, Chief Executive Officer, President Chief Financial Officer and Director (Principal Executive Officer & Principal Financial Officer) | |
|
/s/ Leslie Bernhard
Leslie Bernhard
|
| | Director | |
|
/s/ Arthur L. Goldberg
Arthur L. Goldberg
|
| | Director | |
|
/s/ Brian A. Prinz
Brian A. Prinz
|
| | Director | |
| | | | | F-2 | | | |
|
Financial Statements:
|
| | | | | | |
| | | | | F-3 | | | |
| | | | | F-4 | | | |
| | | | | F-5 | | | |
| | | | | F-6 | | | |
| | | | | F-8 | | |
| | |
December 31,
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Assets | | | | | | | | | | | | | |
Assets: | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 18,841,937 | | | | | $ | 99,310 | | |
Cash – restricted
|
| | | | — | | | | | | 59,549 | | |
Short-term marketable securities
|
| | | | 15,949,802 | | | | | | | | |
Escrow deposits
|
| | | | — | | | | | | 12,817 | | |
Mortgages receivable
|
| | | | 94,348,689 | | | | | | 78,011,653 | | |
Mortgages receivable, affiliate
|
| | | | — | | | | | | 879,457 | | |
Interest and fees receivable
|
| | | | 1,370,998 | | | | | | 1,397,038 | | |
Other receivables
|
| | | | 141,397 | | | | | | 155,000 | | |
Due from borrowers
|
| | | | 840,930 | | | | | | 695,218 | | |
Prepaid expenses
|
| | | | 24,734 | | | | | | 14,866 | | |
Property and equipment, net
|
| | | | 1,346,396 | | | | | | 1,180,107 | | |
Deposits on property and equipment
|
| | | | 71,680 | | | | | | 12,000 | | |
Real estate owned
|
| | | | 8,258,082 | | | | | | 2,943,438 | | |
Deferred financing costs
|
| | | | 16,600 | | | | | | 553,597 | | |
Total assets
|
| | | $ | 141,211,245 | | | | | $ | 86,014,050 | | |
Liabilities and Shareholders’ Equity | | | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | | |
Notes payable (net of deferred financing costs of $2,687,190)
|
| | | $ | 55,475,810 | | | | | $ | — | | |
Line of credit
|
| | | | — | | | | | | 27,219,123 | | |
Mortgage payable
|
| | | | 784,081 | | | | | | 290,984 | | |
Accounts payable and accrued expenses
|
| | | | 249,879 | | | | | | 316,413 | | |
Security deposits held
|
| | | | 7,800 | | | | | | 7,800 | | |
Advances from borrowers
|
| | | | 848,268 | | | | | | 317,324 | | |
Due to shareholder
|
| | | | — | | | | | | 1,200,000 | | |
Deferred revenue
|
| | | | 1,205,740 | | | | | | 1,058,406 | | |
Notes payable
|
| | | | 75,433 | | | | | | — | | |
Dividend payable
|
| | | | — | | | | | | 2,624,566 | | |
Accrued interest
|
| | | | 3,416 | | | | | | 176,619 | | |
Total liabilities
|
| | | | 58,650,427 | | | | | | 33,211,235 | | |
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
and 15,438,621 issued and outstanding |
| | | | 22,117 | | | | | | 15,439 | | |
Paid-in capital
|
| | | | 83,856,308 | | | | | | 53,192,859 | | |
Accumulated other comprehensive loss
|
| | | | (50,878) | | | | | | — | | |
Accumulated deficit
|
| | | | (1,266,729) | | | | | | (405,483) | | |
Total shareholders’ equity
|
| | | | 82,560,818 | | | | | | 52,802,815 | | |
Total liabilities and shareholders’ equity
|
| | | $ | 141,211,245 | | | | | $ | 86,014,050 | | |
|
| | |
Years Ended
December 31, |
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Revenue: | | | | | | | | | | | | | |
Interest income from loans
|
| | | $ | 9,751,733 | | | | | $ | 8,960,883 | | |
Investment income
|
| | | | 81,111 | | | | | | — | | |
Origination fees
|
| | | | 1,519,294 | | | | | | 1,411,100 | | |
Late and other fees
|
| | | | 265,310 | | | | | | 189,078 | | |
Processing fees
|
| | | | 167,070 | | | | | | 138,317 | | |
Rental income, net
|
| | | | 69,300 | | | | | | 101,789 | | |
Other income
|
| | | | 826,688 | | | | | | 837,339 | | |
Net gain on sale of real estate
|
| | | | — | | | | | | 74,864 | | |
Total revenue
|
| | | | 12,680,506 | | | | | | 11,713,370 | | |
Operating costs and expenses: | | | | | | | | | | | | | |
Interest and amortization of deferred financing costs
|
| | | | 2,938,237 | | | | | | 1,665,891 | | |
Professional fees
|
| | | | 542,920 | | | | | | 417,312 | | |
Compensation, fees and taxes
|
| | | | 1,534,447 | | | | | | 1,248,107 | | |
Exchange fees
|
| | | | 44,192 | | | | | | 33,535 | | |
Other expenses and taxes
|
| | | | 90,412 | | | | | | 20,707 | | |
Excise tax
|
| | | | — | | | | | | 19,000 | | |
Depreciation
|
| | | | 63,566 | | | | | | 32,529 | | |
Expense in connection with termination of credit facility
|
| | | | 340,195 | | | | | | — | | |
General and administrative expenses
|
| | | | 478,513 | | | | | | 437,011 | | |
Net loss on sale of real estate
|
| | | | 34,919 | | | | | | — | | |
Impairment loss
|
| | | | 417,094 | | | | | | 67,493 | | |
Total operating costs and expenses
|
| | | | 6,484,495 | | | | | | 3,941,585 | | |
Net income
|
| | | | 6,196,011 | | | | | | 7,771,785 | | |
Other comprehensive loss: | | | | | | | | | | | | | |
Unrealized loss on investment securities
|
| | | | (50,878) | | | | | | — | | |
Comprehensive income
|
| | | $ | 6,145,133 | | | | | $ | 7,771,785 | | |
Basic and diluted net income per common share outstanding: | | | | | | | | | | | | | |
Basic
|
| | | $ | 0.32 | | | | | $ | 0.50 | | |
Diluted
|
| | | $ | 0.32 | | | | | $ | 0.50 | | |
Weighted average number of common shares outstanding: | | | | | | | | | | | | | |
Basic
|
| | | | 19,415,237 | | | | | | 15,425,772 | | |
Diluted
|
| | | | 19,415,237 | | | | | | 15,425,772 | | |
| | |
Common
Shares |
| |
Amount
|
| |
Additional
Paid in Capital |
| |
Accumulated
Other Comprehensive Loss |
| |
(Accumulated
Deficit) Retained Earnings |
| |
Totals
|
| ||||||||||||||||||
Balance, January 1, 2018
|
| | | | 15,415,737 | | | | | $ | 15,416 | | | | | $ | 53,315,772 | | | | | | | | | | | $ | 1,235,093 | | | | | $ | 54,566,281 | | |
Offering costs-ATM
|
| | | | | | | | | | | | | | | | (160,479) | | | | | | | | | | | | | | | | | | (160,479) | | |
Stock based compensation
|
| | | | 22,884 | | | | | | 23 | | | | | | 37,566 | | | | | | | | | | | | | | | | | | 37,589 | | |
Dividends paid
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | (6,787,795) | | | | | | (6,787,795) | | |
Dividends declared and payable
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | (2,624,566) | | | | | | (2,624,566) | | |
Net income for the year ended December 31,
2018 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | 7,771,785 | | | | | | 7,771,785 | | |
Balance, December 31, 2018
|
| | | | 15,438,621 | | | | | | 15,439 | | | | | | 53,192,859 | | | | | | | | | | | | (405,483) | | | | | | 52,802,815 | | |
Sale of common stock through ATM
|
| | | | 4,354,773 | | | | | | 4,355 | | | | | | 19,959,990 | | | | | | | | | | | | | | | | | | 19,964,345 | | |
Sale of common stock
|
| | | | 2,300,000 | | | | | | 2,300 | | | | | | 10,578,300 | | | | | | | | | | | | | | | | | | 10,580,600 | | |
Exercise of warrants
|
| | | | 16,407 | | | | | | 16 | | | | | | 82,019 | | | | | | | | | | | | | | | | | | 82,035 | | |
Stock based compensation
|
| | | | 7,500 | | | | | | 7 | | | | | | 43,140 | | | | | | | | | | | | | | | | | | 43,147 | | |
Unrealized loss on marketable securities
|
| | | | | | | | | | | | | | | | | | | | | $ | (50,878) | | | | | | | | | | | | (50,878) | | |
Dividends paid
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | (7,057,257) | | | | | | (7,057,257) | | |
Net income for the year ended December 31,
2019 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | 6,196,011 | | | | | | 6,196,011 | | |
Balance, December 31, 2019
|
| | | | 22,117,301 | | | | | $ | 22,117 | | | | | $ | 83,856,308 | | | | | $ | (50,878) | | | | | $ | (1,266,729) | | | | | $ | 82,560,818 | | |
|
| | |
Years Ended
December 31, |
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
CASH FLOWS FROM OPERATING ACTIVITIES | | | | | | | | | | | | | |
Net income
|
| | | $ | 6,196,011 | | | | | $ | 7,771,785 | | |
Adjustments to reconcile net income to net cash provided by operating activities:
|
| | | | | | | | | | | | |
Write-off and amortization of deferred financing costs
|
| | | | 722,580 | | | | | | 137,241 | | |
Depreciation expense
|
| | | | 63,566 | | | | | | 32,529 | | |
Stock based compensation
|
| | | | 43,147 | | | | | | 37,589 | | |
Impairment loss
|
| | | | 417,094 | | | | | | 67,493 | | |
Loss on sale of real estate
|
| | | | 34,919 | | | | | | (74,864) | | |
Abandonment of office furniture
|
| | | | 12,000 | | | | | | — | | |
Changes in operating assets and liabilities:
|
| | | | | | | | | | | | |
(Increase) decrease in:
|
| | | | | | | | | | | | |
Escrow deposits
|
| | | | 12,817 | | | | | | 98,372 | | |
Interest and fees receivable
|
| | | | (154,196) | | | | | | (994,900) | | |
Other receivables
|
| | | | 13,603 | | | | | | 234,570 | | |
Due from borrowers
|
| | | | 385,424 | | | | | | (243,423) | | |
Prepaid expenses
|
| | | | (9,868) | | | | | | (10,346) | | |
Deposits
|
| | | | (59,680) | | | | | | (12,000) | | |
(Decrease) increase in:
|
| | | | | | | | | | | | |
Due to note purchaser
|
| | | | — | | | | | | (723,478) | | |
Accrued interest
|
| | | | (173,203) | | | | | | 136,027 | | |
Accounts payable and accrued expenses
|
| | | | (66,535) | | | | | | (74,345) | | |
Deferred revenue
|
| | | | 147,334 | | | | | | (49,994) | | |
Advances from borrowers
|
| | | | 530,944 | | | | | | (116,207) | | |
Total adjustments
|
| | | | 1,919,946 | | | | | | (1,555,736) | | |
NET CASH PROVIDED BY OPERATING ACTIVITIES
|
| | | | 8,115,957 | | | | | | 6,216,049 | | |
CASH FLOWS FROM INVESTING ACTIVITIES | | | | | | | | | | | | | |
Purchase of investments and marketable securities
|
| | | | (16,000,680) | | | | | | — | | |
Proceeds from sale of real estate owned
|
| | | | 1,087,004 | | | | | | 1,848,558 | | |
Acquisitions of and improvements to real estate owned, net
|
| | | | (1,266,949) | | | | | | (541,525) | | |
Purchase of property and equipment
|
| | | | (241,855) | | | | | | (710,815) | | |
Security deposits
|
| | | | — | | | | | | 5,250 | | |
Principal disbursements for mortgages receivable
|
| | | | (64,742,552) | | | | | | (42,078,191) | | |
Principal collections on mortgages receivable
|
| | | | 43,347,362 | | | | | | 24,641,469 | | |
NET CASH USED FOR INVESTING ACTIVITIES
|
| | | | (37,817,670) | | | | | | (16,835,254) | | |
| | |
Years Ended
December 31, |
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
CASH FLOWS FROM FINANCING ACTIVITIES
|
| | | | | | | | | | | | |
Proceeds from line of credit
|
| | | | 42,720,829 | | | | | | 77,564,529 | | |
Repayment of line of credit
|
| | | | (69,939,952) | | | | | | (60,187,019) | | |
Proceeds from notes sold to shareholder
|
| | | | 1,017,000 | | | | | | — | | |
Repayment of notes sold to shareholder
|
| | | | (2,217,000) | | | | | | — | | |
Principal payments on mortgage payable
|
| | | | — | | | | | | (10,117) | | |
Dividends
|
| | | | (9,681,823) | | | | | | (6,787,795) | | |
Costs in connection with ATM
|
| | | | — | | | | | | (160,479) | | |
Financing costs incurred
|
| | | | (2,872,774) | | | | | | (595,278) | | |
Proceeds from mortgage payable
|
| | | | 795,000 | | | | | | — | | |
Prepayment of mortgage payable
|
| | | | (301,903) | | | | | | — | | |
Proceeds from notes payable, net
|
| | | | 75,434 | | | | | | — | | |
Proceeds from issuance of common stock
|
| | | | 30,544,945 | | | | | | — | | |
Proceeds from exercise of warrants
|
| | | | 82,035 | | | | | | — | | |
Proceeds from issuance of notes
|
| | | | 58,163,000 | | | | | | — | | |
NET CASH PROVIDED BY FINANCING ACTIVITIES
|
| | | | 48,384,791 | | | | | | 9,823,841 | | |
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH
|
| | | | 18,683,078 | | | | | | (795,364) | | |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH — BEGINNING OF YEAR
|
| | | | 158,859 | | | | | | 954,223 | | |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH — END OF YEAR
|
| | | $ | 18,841,937 | | | | | $ | 158,859 | | |
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION
|
| | | | | | | | | | | | |
Taxes paid
|
| | | $ | — | | | | | $ | 53,191 | | |
Interest paid
|
| | | $ | 2,237,240 | | | | | $ | 1,370,714 | | |
SUPPLEMENTAL INFORMATION-NON-CASH | | | | | | | | | | | | | |
Dividends declared and payable
|
| | | $ | — | | | | | $ | 2,624,566 | | |
|
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Total
|
| ||||||||||||
Certificates of Deposit
|
| | | | — | | | | | $ | 2,999,738 | | | | | | — | | | | | $ | 2,999,738 | | |
Stocks and ETF’s
|
| | | $ | 2,990,008 | | | | | | — | | | | | | — | | | | | $ | 2,990,008 | | |
Mutual Funds
|
| | | | 12,959,794 | | | | | | — | | | | | | — | | | | | | 12,959,794 | | |
Total Investments
|
| | | $ | 15,949,802 | | | | | | — | | | | | | — | | | | | $ | 15,949,802 | | |
Real Estate Owned
|
| | | | | | | | | | | | | | | $ | 8,258,082 | | | | | $ | 8,258,082 | | |
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Total
|
| ||||||
Real Estate Owned
|
| | | | | | | | | $ | 2,943,438 | | | | | $ | 2,943,438 | | |
| | |
Residential
|
| |
Commercial
|
| |
Land
|
| |
Mixed Use
|
| |
Total
Outstanding Mortgages |
| |||||||||||||||
December 31, 2018
|
| | | $ | 52,980,472 | | | | | $ | 19,250,618 | | | | | $ | 5,638,113 | | | | | $ | 1,021,907 | | | | | $ | 78,891,110 | | |
December 31, 2019
|
| | | $ | 71,605,920 | | | | | $ | 16,122,990 | | | | | $ | 5,639,979 | | | | | $ | 979,800 | | | | | $ | 94,348,689 | | |
|
2020
|
| | | $ | 71,083,639 | | |
|
2021
|
| | | | 13,743,477 | | |
|
2022
|
| | | | 9,249,089 | | |
|
2023
|
| | | | 272,484 | | |
|
Total
|
| | | $ | 94,348,689 | | |
|
Year ending December 31, 2020
|
| | | $ | 33,400 | | |
|
Year ending December 31, 2021
|
| | | | 20,100 | | |
|
Year ending December 31, 2022
|
| | | | 5,025 | | |
|
Total
|
| | | $ | 58,525 | | |
|
Year ending December 31, 2020
|
| | | $ | 17,249 | | |
|
2021
|
| | | | 18,142 | | |
|
2022
|
| | | | 19,082 | | |
|
2023
|
| | | | 20,070 | | |
|
2024
|
| | | | 21,110 | | |
|
2025 and thereafter
|
| | | | 688,428 | | |
|
Total
|
| | | $ | 784,081 | | |
|
| | |
Year Ended
December 31, |
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Income from borrower charges
|
| | | $ | 218,804 | | | | | $ | 250,561 | | |
Lender, modification and extension fees
|
| | | | 451,746 | | | | | | 437,839 | | |
In-house legal fees
|
| | | | 153,130 | | | | | | 76,302 | | |
Other income
|
| | | | 3,008 | | | | | | 72,637 | | |
Total
|
| | | $ | 826,688 | | | | | $ | 837,339 | | |
|
Year ending December 31,
|
| | | | | | |
2020
|
| | | $ | 1,008,122 | | |
2021
|
| | | | 150,437 | | |
2022
|
| | | | 47,181 | | |
Total
|
| | | $ | 1,205,740 | | |