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, 2021
Sep. 30, 2020
CASH FLOWS FROM OPERATING ACTIVITIES    
Net income $ 9,032,858 $ 6,643,877
Adjustments to reconcile net income to net cash provided by operating activities:    
Amortization of deferred financing costs and bond discount 839,418 357,497
Write-off of deferred financing costs 72,806 0
Depreciation expense 61,286 46,318
Stock based compensation 126,538 12,321
Impairment loss 469,000 495,000
Loss on sale of real estate 111,545 7,276
Gain on sale of marketable securities (212,449) (415,301)
Debt Forgiveness (257,845) 0
(Increase) decrease in:    
Interest and fees receivable (885,380) (180,335)
Other receivables (361,084) 54,090
Due from borrowers (1,405,352) (273,202)
Prepaid expenses (14,500) (82,082)
Deposits on property and equipment 0 (100,530)
(Decrease) increase in:    
Accrued interest (3,344) 77,256
Accounts payable and accrued expenses (179,992) 272,574
Deferred revenue 1,779,960 (91,019)
Advances from borrowers 8,201,117 565,706
Total adjustments 8,341,724 745,569
NET CASH PROVIDED BY OPERATING ACTIVITIES 17,374,582 7,389,446
CASH FLOWS FROM INVESTING ACTIVITIES    
Purchase of investment securities (160,896,229) (37,216,177)
Proceeds from the sale of investment securities 141,709,658 25,905,769
Purchase of interest in investment partnership, net (1,804,217) 0
Proceeds from sale of real estate owned 1,839,977 1,816,522
Acquisitions of and improvements to real estate owned (333,435) (1,584,300)
Purchase of property and equipment (817,785) (118,364)
Security deposits held (11,416) 5,616
Principal disbursements for mortgages receivable (154,810,007) (68,029,798)
Principal collections on mortgages receivable 90,463,016 37,859,270
Costs in connection with investment activities (281,191) 0
NET CASH USED FOR INVESTING ACTIVITIES (84,941,629) (41,361,462)
CASH FLOWS FROM FINANCING ACTIVITIES    
Net proceeds from line of credit 2,000,511 12,080,569
Repayment of mortgage payable (767,508) (12,296)
Principal payments on notes payable (17,184) (15,303)
Dividends paid on Common Stock (8,778,392) (5,308,152)
Dividends paid on Preferred Stock (932,089) 0
Financing costs incurred (450,651) (108,353)
Proceeds from other loans 0 257,845
Proceeds from issuance of common shares, net of expenses 30,884,022 0
Proceeds from issuance of Series A Preferred Stock, net of expenses 45,462,626 0
Gross proceeds from issuance of fixed rate notes 0 14,363,750
Financing costs incurred in connection with fixed rate notes 0 (743,908)
NET CASH PROVIDED BY FINANCING ACTIVITIES 67,401,335 20,514,152
NET DECREASE IN CASH AND CASH EQUIVALENTS (165,712) (13,457,864)
CASH AND CASH EQUIVALENTS- BEGINNING OF YEAR 19,408,028 18,841,937
CASH AND CASH EQUIVALENTS - END OF PERIOD 19,242,316 5,384,073
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION    
Interest paid $ 6,745,109 $ 2,093,080