Related Party Transactions |
9 Months Ended | |||
|---|---|---|---|---|
Sep. 30, 2017 | ||||
| Related Party Transactions [Abstract] | ||||
| Related Party Transactions Disclosure [Text Block] |
The Company currently leases office space in a building owned by Union News of New Haven, Inc., an entity that is controlled and 20%-owned by Jeffrey Villano, the Company’s co-CEO. Rent and other facility related charges paid by the Company to Union News for the three months ended September 30, 2017 and the period beginning February 8, 2017 and ending September 30, 2017 were $3,000 and $10,500, respectively. Prior to the Exchange and the IPO, SCP reimbursed JJV, the Managing Member of SCP, for amounts paid by JJV to Union News. For the three and nine-month periods ended September 30, 2016, these amounts were $900 and $3,700, respectively. The Company expects to move its operations to a new location, owned by the Company, in the second quarter of 2018. (See Note 6.) Prior to the Exchange, from time to time, JJV acquired certain troubled assets from third parties who were not existing Company borrowers. JJV borrowed money from the Company to finance these arrangements. The real estate purchased is held by JJV in trust for the Company. The Company accounts for these arrangements as separate loans to JJV. The income earned on these loans is equivalent to the income earned on similar loans in the portfolio. All underwriting guidelines are adhered to. The mortgage documents allow JJV to sell the properties in case of default with proceeds in excess of loan principal and accrued expense being returned to the borrower. During the nine months ended September 30, 2017, the Company did not enter into any new loan agreements with JJV. The principal balance of the loans to JJV at September 30, 2017 were $1,104,022. During the nine months ended September 30, 2017 and 2016, JJV was paid $52,902 and $384,258, respectively, related to origination fees. (See Note 7.) During the three and nine-month periods ended September 30, 2017 and 2016, JJV paid $31,320 and $41,145, and $103,223 and $127,158, respectively, of interest on borrowings from the Company. Prior to the date of the Exchange, JJV frequently paid for costs on behalf of the Company. These costs include insurance and real estate taxes where the Company has been notified that the borrower is in default, costs of any actions (i.e., foreclosures) commenced by the Company to enforce its rights or collect amounts due from borrowers who have defaulted on their obligations to the Company as well as other related costs that the Company deems appropriate to protects its interests. Salaries and payroll taxes paid for by JJV on behalf of the Company are included in other fees and taxes. For the nine months ended September 30, 2017 and 2016, JJV charged the Company $9,035 and -0-, respectively, for certain payroll and related costs. Unreimbursed costs advanced and unpaid by JJV on behalf of the Company as of September 30, 2017 were $16,958 and are included in due to shareholders on the Company’s balance sheet. On February 9, 2017, the Company purchased computer hardware, software and furniture and fixtures totaling $92,806 from JJV at cost. |