Quarterly report pursuant to Section 13 or 15(d)

Subsequent Events

Subsequent Events

6 Months Ended

Jun. 30, 2018

10.

Subsequent Events

Management has evaluated subsequent events through August 13, 2018 the date on which the accompanying financial statements were completed. Except as otherwise set forth in this Note 11, based on management’s evaluation, no adjustments were required in the accompanying financial statements.

In July 2018, the Compensation Committee of the Company’s Board of Directors, the members of which are the three independent members of the Board of Directors approved an increase in the annual base compensation payable to each of the Company’s two senior executive officers retroactive to April 1, 2018. As of that date, the annual base compensation of each senior executive officer is $360,000. Accordingly, an additional $50,000 was accrued as compensation expense for the three-months ended June 30, 2018.

In addition, the Compensation Committee also adopted a new compensation plan for the independent members of the Company’s Board of Directors effective as of July 1, 2018. The elements of such compensation plan are as follows:

(i)

An annual directors fee of $15,000 payable in four equal installments on January 1, April 1, July 1 and October 1 of each calendar year.

(ii)

An annual fee of $5,000 payable to the chairman of the Audit Committee of the Company’s Board of Directors and an annual fee of $2,500 payable to the chairman of each of the Compensation Committee and the Corporate Governance Committee of the Company’s Board of Directors. The fees payable under this paragraph will be in four (4) equal quarterly installment simultaneously with the payment of the annual directors’ fee described in clause (i) above

(iii)

An initial grant of $30,000 of restricted common shares of the Company, of which 25% vests immediately on the date the restricted common shares are granted (the “Grant Date”) and 25% will vest on each of the first, second and third anniversaries of the Grant Date. Any unvested shares are non-transferable and subject to forfeiture upon the resignation or removal for cause of the director. The vesting of any unvested shares will accelerate upon the death or disability of the director, a change in control of the Company or the removal of a director without cause. In the case of the independent directors currently serving on the Company’s Board of Director’s the initial restricted grant described in this clause (iii) was made in July 2018.

	(iv)	A grant of $2,500 of the Company’s common shares upon a directors’ re-election to the Company’s Board of Directors.

On July 2, 2018, the Company entered into an agreement to sell a property classified as real estate owned and held for rental. The selling price is $382,000 and the Company is required to make certain repairs prior to sale. The carrying cost of the property is approximately $241,500, not including the costs of repairs to be made by the Company. The Company expects a profit on the sale of the property.

On August 2, 2018, the Company entered into an agreement to sell a property classified as real estate owned and held for sale. The selling price is $224,000 and the carrying cost of the property is approximately $223,000. The Company expects to recover its investment in the property.

On August 6, 2018, the Company entered into an agreement to sell a property classified as real estate owned. The selling price is $211,000 net buyer credits and the carrying cost of the property is approximately $182,000. The Company expects a profit on the sale of the property.

On July 27, 2018, the Company paid a dividend of $0.11 per share, or $1,698,060 in the aggregate,to its shareholders.