Quarterly report pursuant to Section 13 or 15(d)

STATEMENTS OF CASH FLOW

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STATEMENTS OF CASH FLOW - USD ($)
9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
CASH FLOWS FROM OPERATING ACTIVITIES    
Net income $ 3,171,315 $ 2,227,048
Adjustments to reconcile net income to net cash provided by operating activities:    
Amortization of deferred financing costs 43,677 36,116
Depreciation expense 21,624 0
Gain on sale of real estate (179) 0
Impairment loss 0 96,697
Adjustment to loss for sale of collateral (42,231) 0
(Increase) decrease in:    
Interest and fees receivable (154,877) (199,277)
Other receivables 14,227 (81,551)
Due from borrowers (278,694) 0
Prepaid expenses (38,342) 0
(Decrease) increase in:    
Due to member (656,296) 276,743
Due to shareholder 16,957 0
Accrued interest 55,071 (14,741)
Accrued expenses (118,183) 0
Deferred revenue 580,741 (1,162)
Advances from borrowers 154,888 76,226
Total adjustments (401,617) 189,051
NET CASH PROVIDED BY OPERATING ACTIVITIES 2,769,698 2,416,099
CASH FLOWS FROM INVESTING ACTIVITIES    
Proceeds from sale of real estate owned 530,181 545,970
Acquisitions of and improvements to real estate owned (424,023) (562,950)
Escrow deposit (46,440) (57,000)
Purchase of furniture and equipment (132,729) 0
Security deposit 1,750 0
Principal disbursements for mortgages receivable (33,792,878) (14,335,922)
Principal collections on mortgages receivable 14,849,831 10,921,370
NET CASH USED FOR INVESTING ACTIVITIES (19,014,308) (3,488,532)
CASH FLOWS FROM FINANCING ACTIVITIES    
Proceeds from line of credit 25,341,633 5,425,000
Repayment of line of credit (17,534,390) (2,900,000)
Principal payments on mortgage payable (6,432) 0
Dividends paid (1,720,997) 0
Proceeds from IPO 13,000,000 0
Pre-offering costs incurred (1,486,798) (197,999)
Financing costs incurred (87,202) (65,050)
Member contributions 653,646 3,754,069
Member distributions (2,460,125) (3,500,892)
NET CASH PROVIDED BY FINANCING ACTIVITIES 15,699,335 2,515,128
NET INCREASE (DECREASE) IN CASH (545,275) 1,442,695
CASH - BEGINNING OF PERIOD 1,561,863 1,834,082
CASH - END OF PERIOD 1,016,588 3,276,777
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION    
Interest paid $ 545,782 $ 339,309