Annual report pursuant to Section 13 and 15(d)

STATEMENTS OF CASH FLOW

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STATEMENTS OF CASH FLOW - USD ($)
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES    
Net income $ 7,771,785 $ 4,860,848
Adjustments to reconcile net income to net cash provided by operating activities:    
Amortization of deferred financing costs 137,241 59,118
Depreciation expense 32,529 28,358
Stock based compensation 37,589 0
Impairment loss 67,493 0
Gain on sale of real estate (74,864) (179)
(Increase) decrease in:    
Escrow deposits 98,372 (111,189)
Interest and fees receivable (994,900) (166,565)
Other receivables 234,570 (51,728)
Due from borrowers (243,423) 0
Prepaid insurance (10,346) (4,520)
Deposits (12,000) 0
(Decrease) increase in:    
Due to note purchaser (723,478) 0
Due to member 0 (656,296)
Accrued interest 136,027 16,242
Accrued expenses (74,345) 194,674
Deferred revenue (49,994) 817,944
Advances from borrowers (116,207) (141,995)
Total adjustments (1,555,736) (16,136)
NET CASH PROVIDED BY OPERATING ACTIVITIES 6,216,049 4,844,712
CASH FLOWS FROM INVESTING ACTIVITIES    
Proceeds from sale of real estate owned 1,848,558 530,181
Acquisitions of and improvements to real estate owned (541,525) (531,961)
Purchase of land and building (699,228) (39,923)
Purchase of property and equipment (11,587) (92,806)
Security deposits 5,250 1,750
Principal disbursements for mortgages receivable (42,078,191) (53,468,949)
Principal collections on mortgages receivable 24,641,469 23,948,601
Repurchase of notes sold 0 (2,000,000)
Proceeds from notes sold 0 2,723,478
NET CASH USED FOR INVESTING ACTIVITIES (16,835,254) (28,929,629)
CASH FLOWS FROM FINANCING ACTIVITIES    
Proceeds from line of credit 77,564,529 44,177,225
Repayment of line of credit (60,187,019) (42,449,555)
Principal payments on mortgage payable (10,117) (8,899)
Dividends (6,787,795) (3,339,655)
Proceeds from IPO 0 30,250,000
Pre-offering costs incurred 0 (3,258,158)
Costs in connection with ATM (160,479)
Financing costs incurred (595,278) (87,202)
Member contributions 0 653,646
Member distributions 0 (2,460,125)
NET CASH PROVIDED BY FINANCING ACTIVITIES 9,823,841 23,477,277
NET DECREASE IN CASH AND RESTRICTED CASH (795,364) (607,640)
CASH AND RESTRICTED CASH- BEGINNING OF YEAR 954,223 1,561,863
CASH AND RESTRICTED CASH - END OF  YEAR 158,859 954,223
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION    
Taxes paid 53,191 0
Interest paid 1,370,714 587,442
SUPPLEMENTAL INFORMATION-NON-CASH    
Dividends declared and payable $ 2,624,566 $ 0