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, 2020
Dec. 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES    
Net income $ 8,993,865 $ 6,196,011
Adjustments to reconcile net income to net cash provided by operating activities:    
Amortization of deferred financing costs 601,959 722,580
Depreciation expense 61,865 63,566
Stock based compensation 16,429 43,147
Impairment loss 795,000 417,094
Loss on sale of real estate 7,218 34,919
Abandonment of office furniture   12,000
Gain on sale of marketable securities (903,257) 0
(Increase) decrease in:    
Escrow deposits   12,817
Interest and fees receivable (504,578) (154,196)
Other receivables 74,090 13,603
Due from borrowers (1,537,768) 385,424
Prepaid expenses (46,579) (9,868)
Deposits on property and equipment 71,680 (59,680)
(Decrease) increase in:    
Accrued interest (72) (173,203)
Accounts payable and accrued expenses 122,098 (66,535)
Deferred revenue 893,591 147,334
Advances from borrowers 982,271 530,944
Total adjustments 633,947 1,919,946
NET CASH PROVIDED BY OPERATING ACTIVITIES 9,627,812 8,115,957
CASH FLOWS FROM INVESTING ACTIVITIES    
Purchase of investments (97,555,422) (16,000,680)
Proceeds from the sale of investments 77,139,664 0
Proceeds from sale of real estate owned 1,816,522 1,087,004
Acquisitions of and improvements to real estate owned (1,811,980) (1,266,949)
Purchase of property and equipment (148,857) (241,855)
Security deposits held 5,616 0
Principal disbursements for mortgages receivable (117,230,923) (64,742,552)
Principal collections on mortgages receivable 54,961,570 43,347,362
NET CASH USED FOR INVESTING ACTIVITIES (82,823,810) (37,817,670)
CASH FLOWS FROM FINANCING ACTIVITIES    
Proceeds from line of credit 30,055,648 42,720,829
Repayment of line of credit (2,000,000) (69,939,952)
Proceeds from notes sold to shareholder   1,017,000
Repayment of notes sold to shareholder   (2,217,000)
Principal payments on mortgage payable (16,573) 0
Principal payments on notes payable (20,751) 0
Dividends paid (7,963,128) (9,681,823)
Financing costs incurred (114,559) (2,872,774)
Proceeds from other loans 257,845 0
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
Gross proceeds from issuance of fixed rate notes 56,083,750 58,163,000
Financing costs incurred in connection with fixed rate notes (2,520,143) 0
NET CASH PROVIDED BY FINANCING ACTIVITIES 73,762,089 48,384,791
NET INCREASE IN CASH AND CASH EQUIVALENTS 566,091 18,683,078
CASH AND CASH EQUIVALENTS- BEGINNING OF YEAR 18,841,937 158,859
CASH AND CASH EQUIVALENTS - END OF PERIOD 19,408,028 18,841,937
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION    
Taxes paid   0
Interest paid 4,945,448 2,237,240
SUPPLEMENTAL INFORMATION-NON-CASH    
Original Issue Discount 280,000 0
Dividends declared and payable $ 2,654,976 $ 0