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, 2021
Dec. 31, 2020
CASH FLOWS FROM OPERATING ACTIVITIES    
Net income $ 13,318,696 $ 8,993,865
Adjustments to reconcile net income to net cash provided by operating activities:    
Amortization of deferred financing costs and bond discount 1,215,200 601,959
Write-off of deferred financing costs 72,806  
Depreciation expense 83,525 61,865
Stock based compensation 191,318 16,429
Impairment loss 719,000 795,000
Loss on sale of real estate 439,525 7,218
Gain on sale of marketable securities (284,769) (903,257)
(Increase) decrease in:    
Interest and fees receivable (1,873,578) (504,578)
Other receivables (26,801) 74,090
Due from borrowers (1,645,353) (1,537,768)
Prepaid expenses (199,978) (46,579)
Deposits on property and equipment   71,680
(Decrease) increase in:    
Accrued interest 161,385 (72)
Accounts payable and accrued expenses 129,091 122,098
Deferred revenue 2,544,159 893,591
Advances from borrowers 13,235,575 982,271
Total adjustments 14,761,105 633,947
NET CASH PROVIDED BY OPERATING ACTIVITIES 28,079,801 9,627,812
CASH FLOWS FROM INVESTING ACTIVITIES    
Purchase of investment securities (204,064,590) (97,555,422)
Proceeds from the sale of investment securities 180,533,333 77,139,664
Purchase of interests in investment partnerships, net (6,055,838)  
Proceeds from sale of real estate owned 2,387,721 1,816,522
Acquisitions of and improvements to real estate owned (1,243,646) (1,811,980)
Purchase of property and equipment (822,322) (148,857)
Security deposits held (13,416) 5,616
Principal disbursements for mortgages receivable (251,832,318) (117,230,923)
Principal collections on mortgages receivable 115,147,409 54,961,570
Costs in connection with investment activities (306,440)  
NET CASH USED FOR INVESTING ACTIVITIES (166,270,107) (82,823,810)
CASH FLOWS FROM FINANCING ACTIVITIES    
Net proceeds from line of credit 5,122,383 28,055,648
Net proceeds from repurchase facility 19,087,189  
Proceeds from mortgage 750,000  
Repayment of mortgage payable (767,508)  
Principal payments on mortgage payable   (16,573)
Principal payments on notes payable (23,761) (20,751)
Dividends paid on Common Stock (12,267,706) (7,963,128)
Dividends paid on Preferred Stock (1,853,855)  
Financing costs incurred (461,357) (114,559)
Proceeds from other loans   257,845
Repayment of other loans (257,845)  
Proceeds from issuance of common shares, net of expenses 56,060,472  
Proceeds from issuance of Series A Preferred Stock, net of expenses 45,462,626  
Gross proceeds from issuance of fixed rate notes 51,750,000 56,083,750
Financing costs incurred in connection with fixed rate notes (1,879,463) (2,520,143)
NET CASH PROVIDED BY FINANCING ACTIVITIES 160,721,175 73,762,089
NET INCREASE IN CASH AND CASH EQUIVALENTS 22,530,869 566,091
CASH AND CASH EQUIVALENTS- BEGINNING OF YEAR 19,408,028 18,841,937
CASH AND CASH EQUIVALENTS - END OF YEAR 41,938,897 19,408,028
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION    
Interest paid 9,097,631 4,945,448
SUPPLEMENTAL INFORMATION-NON-CASH    
Dividends declared and payable $ 3,927,600 $ 2,654,976