Cover
Cover - shares | 12 Months Ended | |
Dec. 31, 2021 | Mar. 29, 2022 | |
Cover [Abstract] | ||
Document Type | 10-K | |
Amendment Flag | false | |
Document Annual Report | true | |
Document Transition Report | false | |
Document Period End Date | Dec. 31, 2021 | |
Document Fiscal Period Focus | FY | |
Document Fiscal Year Focus | 2021 | |
Current Fiscal Year End Date | --12-19 | |
Entity File Number | 000-25919 | |
Entity Registrant Name | AMERICAN CHURCH MORTGAGE COMPANY | |
Entity Central Index Key | 0000934543 | |
Entity Tax Identification Number | 41-1793975 | |
Entity Incorporation, State or Country Code | MN | |
Entity Address, Address Line One | 10400 Yellow Circle Drive | |
Entity Address, Address Line Two | Suite | |
Entity Address, City or Town | Minnetonka | |
Entity Address, State or Province | MN | |
Entity Address, Postal Zip Code | 55343 | |
City Area Code | (952) | |
Local Phone Number | 945-9455 | |
Title of 12(b) Security | Common Stock, $0.01 par value per share | |
Trading Symbol | ACMC | |
Security Exchange Name | NONE | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 1,676,598 | |
Auditor Firm ID | 344 | |
Auditor Name | WIPFLI, LLP | |
Auditor Location | Minneapolis, Minnesota |
Balance Sheet
Balance Sheet - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Assets | ||
Cash and cash equivalents | $ 114,798 | $ 87,702 |
Accounts receivable | 79,887 | 101,532 |
Interest receivable | 89,280 | 242,019 |
Prepaid expenses | 2,317 | 7,796 |
Mortgage Loans Receivable net of Loan Loss and Deferred Origination Fees | 13,774,525 | 16,605,967 |
Bond Portfolio | 16,337,525 | 18,100,711 |
Real Estate Held for Sale | 328,996 | 428,996 |
Total Assets | 30,697,781 | 35,574,723 |
Liabilities | ||
Accounts payable | 137 | 14,400 |
Management fee payable | 21,530 | 22,908 |
Line of credit | 300,000 | 2,288,000 |
Dividends payable | 16,766 | |
Secured Investor Certificates, Series B | 4,766,500 | 6,022,500 |
Secured Investor Certificates, Series C | 5,977,000 | 6,127,000 |
Secured Investor Certificates, Series D | 7,797,000 | 8,029,000 |
Secured Investor Certificates, Series E | 3,738,000 | 3,738,000 |
Deferred Finance Costs, Own-share Lending Arrangement, Issuance Costs, Net | (675,746) | (769,178) |
Total liabilities | 21,924,421 | 25,489,396 |
Stockholders’ Equity | ||
Common Stock, Value, Issued | 16,766 | 16,766 |
Additional paid-in capital | 19,111,060 | 19,111,060 |
Accumulated deficit | (10,354,466) | (9,042,499) |
Total stockholders’ equity | 8,773,360 | 10,085,327 |
Total liabilities and stockholders' equity | $ 30,697,781 | $ 35,574,723 |
Balance Sheet (Parenthetical)
Balance Sheet (Parenthetical) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Loan Impairment Reserve | $ 1,486,434 | $ 1,493,996 |
Deferred Income, Current | 152,717 | 198,816 |
Accumulated Amortization, Debt Issuance Costs | $ 804,620 | $ 1,066,068 |
Par Value Common Stock | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 30,000,000 | 30,000,000 |
Common Stock Shares Outstanding | 1,676,598 | 1,676,598 |
Statement of Operations
Statement of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | ||
Interest and Loan Fee Income | $ 1,917,145 | $ 2,543,507 |
Interest Expense | 1,591,372 | 1,766,427 |
Net Interest Income | 325,773 | 777,080 |
Provision credit for losses on mortgage loans receivable | (3,242) | 64,509 |
Net Interest Income after Provision for Mortgage Loans | 329,015 | 712,571 |
Operating Expenses | ||
Other than temporary impairment on bond portfolio | 940,021 | 176,226 |
Net loss on redemption of bond portfolio | 98,164 | |
Impairment on real estate held for sale | 100,000 | 134,808 |
Other operating expenses | 486,031 | 527,396 |
Net (Loss) | $ (1,295,201) | $ (125,859) |
Basic and Diluted (Loss) Per Share | $ (0.77) | $ (0.08) |
Dividends Declared Per Share | $ 0.01 | $ 0.08 |
Weighted Average Number of Shares Outstanding, Diluted | 1,676,896 | 1,676,896 |
Statements of Stockholders' Equ
Statements of Stockholders' Equity - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Dec. 31, 2019 | $ 16,778 | $ 19,113,458 | $ (8,782,464) | $ 10,347,772 |
Common Stock, Shares, Outstanding, Beginning Balance at Dec. 31, 2019 | 1,677,798 | |||
Re-purchase 1,200 shares | $ (12) | (2,398) | (2,410) | |
Stock Repurchased During Period, Shares | (1,200) | |||
Net (loss) | (125,859) | (125,859) | ||
Dividends declared | (134,176) | (134,176) | ||
Ending balance, value at Dec. 31, 2020 | 16,766 | 19,111,060 | (9,042,499) | $ 10,085,327 |
Common Stock, Shares, Outstanding, Beginning Balance at Dec. 31, 2020 | 1,676,598 | |||
Net (loss) | (1,295,201) | $ (1,295,201) | ||
Dividends declared | (16,766) | (16,766) | ||
Ending balance, value at Dec. 31, 2021 | $ 16,766 | $ 19,111,060 | $ (10,354,466) | $ 8,773,360 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Cash Flows [Abstract] | ||
Net (loss) | $ (1,295,201) | $ (125,859) |
Adjustments to reconcile net (loss) income to net cash | ||
Net loss on sales and impairment on real estate held for sale | 100,000 | 134,808 |
Loss on redemption of bonds | 98,164 | |
Provision (credit) for losses on mortgage loans | (3,242) | 64,509 |
Other than temporary impairment on bond portfolio | 940,021 | 176,226 |
Accretion of loan origination fees | (46,099) | (79,818) |
Amortization of deferred offering costs | 93,432 | 109,257 |
Accounts receivable | 21,645 | 24,007 |
Interest receivable | 152,739 | (56,829) |
Prepaid expenses | 5,479 | 5,325 |
Accounts payable | (14,263) | 2,089 |
Management fee payable | (1,378) | (4,347) |
Net cash provided by operating activities | (51,297) | 249,368 |
Cash Flows from Investing Activities | ||
Net decrease in loans | 2,910,783 | 4,126,400 |
Investment in bonds | (2,472,000) | |
Proceeds from redemption, payoffs and maturities of bonds | 724,548 | 251,000 |
Proceeds from real estate held for sale | 87,594 | |
Net cash provided by investing activities | (3,635,331) | 1,922,994 |
Cash Flows from Financing Activities | ||
Net (decrease) in secured investor certificates | (1,638,000) | (2,933,500) |
Payments for deferred costs | (12,902) | |
Net change in line of credit | $ (1,988,000) | $ 843,000 |
Dividends paid | $ (33,532) | $ (243,245) |
Net cash (used for) financing activities | $ (3,659,532) | $ (2,346,647) |
Net Increase (Decrease) in Cash and Cash Equivalents | 27,096 | (104,285) |
Cash and Cash Equivalents - Beginning of Year | 87,702 | 191,987 |
Cash and Cash Equivalents - End of Year | 114,798 | 87,702 |
Supplemental Cash Flow Information | ||
Interest paid | 1,497,940 | 1,657,169 |
Noncash Financing Activities | ||
Renewal of secured investor certificates | $ 530,000 | $ 1,007,250 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | 1. BASIS OF PRESENTATION The accompanying audited financial statements of American Church Mortgage Company, (the “Company”) were prepared in accordance with instructions for Form 10-K and Regulation S-X and include information or footnotes necessary for a complete presentation of financial condition, results of operations, changes in equity and cash flows in conformity with accounting principles generally accepted in the United States of America (“GAAP”). In the opinion of management, all adjustments necessary for a fair presentation of the financial statements have been included. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Business American Church Mortgage Company, a Minnesota corporation, was incorporated on May 27, 1994. The Company is engaged primarily in the business of making mortgage loans to churches and other nonprofit religious organizations throughout the United States, on terms established for individual organizations. Accounting Estimates Management uses estimates and assumptions in preparing these financial statements in accordance with GAAP. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could differ from those estimates. The most sensitive estimates relate to the realizability of the mortgage loans receivable, the valuation of the bond portfolio and the valuation of real estate held for sale. It is at least reasonably possible that these estimates could change in the near term and that the effect of the change, if any, may be material to the financial statements. Risks and Uncertainties The United States and world economies continue to suffer adverse effects from the COVID-19 virus pandemic (“COVID-19”). The impact of the pandemic to the Company has included and may continue to include disruptions or restrictions on employers and contracted agents’ ability to work, reduced demand for new loans and increased repurchase risk of loan or bond defaults. The future impact of the COVID-19 pandemic on the Company cannot be reasonably estimated at this time. AMERICAN CHURCH MORTGAGE COMPANY Notes to Financial Statements December 31, 2021 and 2020 Concentration of Credit Risk The Company's loans have been granted to churches and other non-profit religious organizations. The ability of the Company’s debtors to honor their contracts is dependent on member contributions and the involvement in the church or organization of its senior pastor. Cash and Cash Equivalents The Company considers all highly liquid debt instruments purchased with maturities of three months or less to be cash equivalents. The Company maintains accounts primarily at two financial institutions. At times throughout the year, the Company’s cash and equivalents balances may exceed amounts insured by the Federal Deposit Insurance Corporation. Cash in money market funds is not federally insured. Management believes these financial institutions have strong credit ratings and that the credit risk related to these deposits is minimal. The Company has not experienced any losses in such accounts. Bond Portfolio Bonds that management has the intent to hold to maturity are classified as held to maturity and recorded at amortized cost. Amortization of premiums and accretion of discounts (if any) are recognized in interest income using the interest method over the estimated lives of the securities. Declines in fair value of bonds that are deemed to be other than temporary, if applicable, are reflected in earnings as realized losses. In estimating other-than temporary impairment losses, management considered the length of time and the extent to which fair value has been less than cost, the financial condition and near-term prospects of the issuer, and the interest and the ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. Gains and losses on the sales of securities are recorded on the trade date and determined using the specific-identification method. Allowance for Loan Losses on Mortgage Loans Receivable The Company records mortgage loans receivable at estimated net realizable value, which is the unpaid principal balances of the mortgage loans receivable, less the allowance for loan losses on mortgage loans receivable and less deferred loan origination fees. The Company’s loan policy provides an allowance for estimated uncollectible loans based on an evaluation of the current status of the loan portfolio with application of reserve percentages to specific loans based on payment status. This policy reserves for principal amounts outstanding on a specific loan if cumulative interruptions occur in the normal payment schedule of the loan, therefore, the Company recognizes a provision for losses and an allowance for the outstanding principal amount of the loan in the Company’s portfolio if the amount is in doubt of collection. Additionally, no interest income is recognized on impaired loans that are declared to be in default and are in the foreclosure process. AMERICAN CHURCH MORTGAGE COMPANY Notes to Financial Statements December 31, 2021 and 2020 The Company will declare a loan to be in default and will place the loan on non-accrual status when the following thresholds have been met: (i) the borrower has missed three consecutive mortgage payments; (ii) the borrower has not communicated to the Company any legitimate reason for delinquency in its payments to the Company and has not arranged for the re-continuance of payments; (iii) lines of communication to the borrower have broken down such that any reasonable prospect of rehabilitating the loan and return of regular payments is gone. The Company’s policies on payments received and interest accrued on non-accrual loans are as follows: The Company will accept payments on loans that are currently on non-accrual status when a borrower has communicated to us that they intend to meet their mortgage obligations. The accrual of interest on a loan is discontinued when the loan becomes 90 consecutive days delinquent or whenever management believes the borrower will be unable to make payments as they become due. The interest on these loans is subsequently accounted for on the cash basis or using the cost-recovery method until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current or restructured and future payments are reasonably assured. No interest income was recognized on non-accrual loans for the periods ended December 31, 2021 and 2020. The Company has an Advisory Agreement with Church Loan Advisors, Inc. (the “Advisor”). When a loan is declared in default according to the Company’s policy or deemed to be doubtful of collection, the loan committee of the Advisor will direct the staff to charge-off the uncollectable receivables. Loans totaling approximately $ 2,368,000 2,795,000 Real Estate Held for Sale The Company records real estate held for sale at the estimated fair value, which is net of the expected expenses related to the sale of the real estate. The fair value of our real estate held for sale, which represents the carrying value, totaled $ 328,996 428,996 Gain (Loss) on Real Estate Held For Sale The Company records a gain or loss from real estate held for sale when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. When the Company finances real estate held for sale to the buyer, the Company assesses whether the buyer is committed to perform their obligations under the contract and whether collectability of the transaction price is probable. Once these criteria are met, real estate held for sale is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. In determining the gain or loss on the sale, the Company AMERICAN CHURCH MORTGAGE COMPANY Notes to Financial Statements December 31, 2021 and 2020 adjusts the transaction prices and related gain (loss) on sale if a significant financing component is present. Deferred Financing Costs The Company defers the costs related to obtaining financing. These costs are amortized over the life of the financing using the straight line method, which approximates the effective interest method. Income (Loss) Per Common Share There were no dilutive shares for the periods ended December 31, 2021 and 2020. Recent Accounting Pronouncements In 2016 the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 is intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit. For public entities, deemed small reporting companies, ASU 2016-13 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company has not yet fully evaluated the potential effects of adopting ASU 2016-13 on the Company’s results of operations, financial position or cash flows. Income Taxes The Company elected to be taxed as a Real Estate Investment Trust (REIT). Accordingly, the Company is not subject to Federal income tax to the extent of distributions to its shareholders if the Company meets all the requirements under the REIT provisions of the Internal Revenue Code. The Company evaluated its recognition of income tax benefits using a two-step approach to recognizing and measuring tax benefits when realization of the benefits is uncertain. The first step is to determine whether the benefit meets the more-likely-than-not condition for recognition and the second step is to determine the amount to be recognized based on the cumulative probability that exceeds 50%. Primarily due to the Company’s tax status as a REIT, the Company does not have any significant tax uncertainties that would require recognition or disclosure. Subsequent Events The Company has evaluated events and transactions through March 29, 2022, the date the financial statements were available to be issued. AMERICAN CHURCH MORTGAGE COMPANY Notes to Financial Statements December 31, 2021 and 2020 |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENT | 3. FAIR VALUE MEASUREMENT Some assets and liabilities are measured at fair value on a recurring basis under GAAP. The Company has no such assets or liabilities that are measured at fair value on a recurring basis. Other assets and liabilities may be measured at fair value on a nonrecurring basis. Below is a description of the valuation methodology and significant inputs used for each asset and liability measured at fair value on a nonrecurring basis, as well as the classification of the asset or liability within the fair value hierarchy. Bonds held to maturity Securities held to maturity are not measured at fair value on a recurring basis. However, securities deemed other-than-temporarily impaired are measured at fair value. The fair value measurement of such securities is obtained from various assumptions market participants would use to value the securities, such as current interest rates, estimated credit and liquidity spreads, conditional default and loss severity rates, and available credit support. Since some of these assumptions are unobservable in the current market environment, the fair value measurement of other-than-temporarily impaired securities held to maturity is considered a Level 3 measurement. Loans Loans are not measured at fair value on a recurring basis. However, loans considered to be impaired may be measured at fair value on a nonrecurring basis. The fair value measurement of an impaired loan that is collateral dependent is based on the fair value of the underlying collateral. Independent appraisals are obtained that utilize one or more valuation methodologies - typically they will incorporate a comparable sales approach and an income approach. Management routinely evaluates the fair value measurements of independent appraisers and adjusts those valuations based on differences noted between actual selling prices of collateral and the most recent appraised value. Such adjustments are usually significant, which results in a Level 3 classification. All other impaired loan measurements are based on the present value of expected future cash flows discounted at the applicable effective interest rate. Real estate held for sale Real estate and other property acquired through or in lieu of loan foreclosure are not measured at fair value on a recurring basis. However, foreclosed assets are initially measured at fair value (less estimated costs to sell) when they are acquired and may also be measured at fair value (less estimated costs to sell) if they become subsequently impaired. The fair value measurement for each asset may be obtained from an independent appraiser or prepared internally. Fair value measurements obtained from independent appraisers generally utilize a market approach based on sales of comparable assets and/or an income approach. Such measurements are usually considered Level 2 measurements. However, management routinely evaluates fair value measurements of independent appraisers by comparing actual selling prices to the most recent appraisals. If management determines significant adjustments should be made to the independent appraisals based on these evaluations, these measurements are considered Level 3 measurements. Fair value measurements prepared internally are based on management's comparisons to sales of comparable assets, but include significant unobservable data and are therefore considered Level 3 measurements. Information regarding the Fair Value Of Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Nonrecurring Fair Value at December 31, 2021 Assets: Quoted Prices in Active Markets for Identical Instruments Significant Other Observable Inputs Significant Unobservable Inputs Total Bond portfolio $ — $ — $ 7,142,094 $ 7,142,094 Impaired loans $ — $ — $ 4,496,970 $ 4,496,970 Real estate held for sale $ — $ — $ 328,996 $ 328,996 Nonrecurring Fair Value at December 31, 2020 Assets: Quoted Prices in Active Markets for Identical Instruments Significant Other Observable Inputs Significant Unobservable Inputs Total Bond portfolio $ — $ — $ 4,650,372 $ 4,650,372 Impaired loans $ — $ — $ 5,004,424 $ 5,004,424 Real estate held for sale $ — $ — $ 428,996 $ 428,996 As of December 31, 2021, bonds held to maturity with a carrying value of $ 8,897,598 $7,142,094 1,755,504 5,484,988 4,650,372 834,226 As of December 31, 2021, loans with a carrying amount of $ 5,983,404 4,496,970 1,486,434 6,498,421 5,004,424 1,493,996 Real estate held for sale is recognized at fair value, less costs to sell. Impairment charges of $100,000 and $134,808 were recognized in earnings for the years ended December 31, 2021 and December 31, 2020, respectively. The following presents quantitative information about nonrecurring Level 3 fair value measurements Fair Value Valuation Technique Significant Unobservable Inputs(s) Range/Weighted December 31, 2021 Bond Portfolio $7,142,094 Market or Income Approach Discount to Appraised Values 10-50% Impaired Loans $4,496,970 Market or Income Approach Discount to Appraised Values 10-100% Real Estate Held for Sale $328,996 Market or Income Approach Discount to Appraised Values 10-20% December 31, 2020 Bond Portfolio $4,650,372 Market or Income Approach Discount to Appraised Values 10-20% Impaired Loans $5,004,424 Market or Income Approach Discount to Appraised Values 10-100% Real Estate Held for Sale $428,996 Market or Income Approach Discount to Appraised Values 10-20% The Estimated Fair Values and Carrying Values December 31, 2021 Level 1 Level 2 Level 3 Carrying Value at December 31, 2021 Cash and equivalents $ 114,798 $ — $ — $ 114,798 Accounts receivable 79,887 — — 79,887 Interest receivable 89,280 — — 89,280 Mortgage loans receivable — — 13,744,525 13,744,525 Bond portfolio — — 16,337,978 16,337,978 Line of credit 300,000 — — 300,000 Secured investor certificates — 22,278,500 — 22,278,500 December 31, 2020 Level 1 Level 2 Level 3 Carrying Value Cash and equivalents $ 87,702 $ — $ — $ 87,702 Accounts receivable 101,532 — — 101,532 Interest receivable 242,019 — — 242,019 Mortgage loans receivable — — 16,605,967 16,605,967 Bond portfolio — — 18,100,711 18,100,711 Line of credit 2,288,000 — — 2,288,000 Secured investor certificates — 23,916,500 — 23,916,500 Limitations The fair value of a financial instrument is the current amount that would be exchanged between market participants, other than in a forced liquidation. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company's various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. Consequently, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company. Fair value estimates are made at a specific point in time based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company's entire holdings of a particular instrument. Because no market exists for a significant portion of the Company's financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters that could affect the estimates. Fair value estimates are based on existing on balance-sheet financial instruments without attempting to estimate the value of anticipated future business. |
MORTGAGE LOANS RECEIVABLE
MORTGAGE LOANS RECEIVABLE | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
MORTGAGE LOANS RECEIVABLE | 4. MORTGAGE LOANS RECEIVABLE At December 31, 2021, the Company had mortgage loans receivable totaling $ 15,383,676 18,298,779 At December 31, 2021, the Company reserved $ 1,486,434 5,983,000 1,493,996 6,498,000 A summary of transactions in the Allowance for Mortgage Loans Twelve Months Ended Balance at December 31, 2020 $ 1,493,996 Provision (credit) for loan losses (3,242) Charge-offs (4,320) Balance at December 31, 2021 $ 1,486,434 Twelve Months Ended Balance at December 31, 2019 $ 1,429,487 Provisions for loan losses 64,509 Balance at December 31, 2020 $ 1,493,996 Loans that are in the foreclosure process or are declared to be in default, had a principal balance of $ 921,583 173,900 747,683 Loans that are in the foreclosure process or are declared to be in default, had a principal balance of $ 588,787 37,771 551,016 The outbreak of COVID-19 has affected churches due to shelter-in-place directives which ceased or greatly curtailed social gatherings such as church worship services. The Company’s borrowers have experienced financial duress during the COVID-19 shelter in place restrictions, amplified by the financial setbacks for many of the church members who have lost their jobs, been furloughed, or had their incomes diminished. The Company has provided some temporary relief by allowing its borrowers to either make interest only payments for a period of ninety days or forgo one monthly mortgage payment (forbearance). The Company provided nine churches totaling approximately $ 2,552,000 2,119,000 217,000 impact of COVID-19 on the Company’s investments or operations cannot be reasonably estimated at this time. The contractual Maturity Schedule for Mortgage Loans Receivable Mortgage Loans 2022 $ 779,884 2023 607,505 2024 1,595,826 2025 1,107,088 2026 1,034,196 Thereafter 10,259,177 Subtotal 15,383,676 Less loan loss (1,486,434) Less deferred origination fees (152,717 Total $ 13,744,255 The Company did not restructure any loans during the year ended December 31, 2021 and restructured one loan during the year ended December 31, 2020. A summary of loans re-structured or modified for the year ended December 31, 2021 and 2020 are shown below. All of the loans, except one, are currently performing under the terms of the modifications for their mortgage obligations. This loan is a first mortgage loan with an outstanding balance of $ 377,761 Restructured Loans December 31, 2021 Type of Loan Number of Loans Original Principal Balance Original Average Interest Rate Unpaid Principal Balance Modified Average Interest Rate Mortgage Loans 6 $4,196,544 8.101% $3,415,692 6.431% December 31, 2020 Type of Loan Number of Loans Original Principal Balance Original Average Interest Rate Unpaid Principal Balance Modified Average Interest Rate Mortgage Loans 7 $4,696,544 8.127% $3,523,123 6.466% |
BOND PORTFOLIO
BOND PORTFOLIO | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
BOND PORTFOLIO | 5. BOND PORTFOLIO The Company has a portfolio of secured church bonds at December 31, 2021 and 2020, which are carried at amortized cost. The bonds pay either semi-annual or quarterly interest ranging from 3.50% to 9.75%. The aggregate par value of secured church bonds equaled $ 18,093,483 18,934,937 1,755,504 834,226 842,000 and 251,000 The contractual maturity schedule for the bond portfolio as of December 31, 2021, is as follows: Maturity Schedule Bond Portfolio Bond Portfolio 2022 $ 257,000 2023 130,000 2024 455,000 2025 260,000 2026 631,000 Thereafter 16,360,483 Subtotal 18,093,483 Less other than temporary impairment on bond portfolio (1,755,504 Totals $ 16,337,978 Total other than temporary impairment related to the bond portfolio was $ 1,755,504 834,226 7,142,094 4,650,372 Below is a rollforward of the amount of other than temporary impairment related to credit loss that has been recognized in earnings during the year ended December 31, 2021 and 2020: Temporary Impairment Bond Portfolio December 31, 2021 December 31, 2020 Beginning Balance $ 834,226 $ 658,000 Additions to other than temporary impairment 940,021 176,226 Credit loss realized from redemption of securities (18,743 ) — Ending Balance $ 1,755,504 $ 834,226 |
SECURED INVESTOR CERTIFICATES
SECURED INVESTOR CERTIFICATES | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
SECURED INVESTOR CERTIFICATES | 6. SECURED INVESTOR CERTIFICATES Secured investor certificates are collateralized by certain mortgage loans receivable or secured church bonds of approximately the same value as the certificates. The weighted average interest rate on the certificates was 6.12% and 6.19% for the years ended December 31, 2021 and 2020, respectively. Holders of the secured investor certificates may renew certificates at the current rates and terms upon maturity at the Company’s discretion. Renewals upon maturity are considered neither proceeds from nor issuance of secured investor certificates. Renewals totaled approximately $ 530,000 1,007,000 The estimated Maturity Schedule for the Secured Investor Certificates 2022 $ 1,042,000 2023 3,404,000 2024 1,433,000 2025 1,202,000 2026 747,000 Thereafter 14,450,500 Subtotal $22,278,500 Less deferred offering costs (675,746) Totals $ 21,602,754 The Company’s current certificate offering terminated November 6, 2020. As a result, no new secured investor certificates are not being offered and instead the Company is financing loan requests and liquidity needs through loan and bond payments received and its line of credit. |
TRANSACTIONS WITH AFFILIATES
TRANSACTIONS WITH AFFILIATES | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
TRANSACTIONS WITH AFFILIATES | 7. TRANSACTIONS WITH AFFILIATES The Company has an Advisory Agreement with Church Loan Advisors, Inc. (the “Advisor”). The Advisor is responsible for the day-to-day operations of the Company and provides office space and administrative services. The Advisor and the Company are related through common management. For its services, the Advisor is entitled to receive a management fee equal to 1.25% annually of the Company's Average Invested Assets, plus one-half of any origination fee charged to borrowers on mortgage loans made by the Company. A majority of the independent board members approve the Advisory Agreement on an annual basis. The Company paid the Advisor management and origination fees of approximately $ 268,000 284,000 30,000 |
LINE OF CREDIT
LINE OF CREDIT | 12 Months Ended |
Dec. 31, 2021 | |
Line Of Credit | |
LINE OF CREDIT | 8. LINE OF CREDIT On April 9, 2018, the Company entered into a Loan and Security Agreement (the “Loan Agreement”) with Alerus Financial, N.A., as lender (the “Lender”), and a Revolving Note (the “Note”) evidencing a $ 4,000,000 300,000 2,288,000 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 9. INCOME TAXES As discussed in Note 1, a REIT is subject to taxation to the extent that taxable income exceeds dividend distributions to shareholders. In order to maintain status as a REIT, the Company is required to distribute at least 90% of its taxable income. In 2021, the Company had pretax loss of $( 1,295,201 16,766 125,859 134,176 The Company has federal and Minnesota net operating loss carryforwards of $ 2,574,000 1,985,000 1,934,000 |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
The accompanying audited financial statements of American Church Mortgage Company, (the “Company”) were prepared in accordance with instructions for Form 10-K and Regulation S-X and include information or footnotes necessary for a complete presentation of financial condition, results of operations, changes in equity and cash flows in conformity with accounting principles generally accepted in the United States of America (“GAAP”). | The accompanying audited financial statements of American Church Mortgage Company, (the “Company”) were prepared in accordance with instructions for Form 10-K and Regulation S-X and include information or footnotes necessary for a complete presentation of financial condition, results of operations, changes in equity and cash flows in conformity with accounting principles generally accepted in the United States of America (“GAAP”). In the opinion of management, all adjustments necessary for a fair presentation of the financial statements have been included. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Accounting Estimates | Accounting Estimates Management uses estimates and assumptions in preparing these financial statements in accordance with GAAP. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could differ from those estimates. The most sensitive estimates relate to the realizability of the mortgage loans receivable, the valuation of the bond portfolio and the valuation of real estate held for sale. It is at least reasonably possible that these estimates could change in the near term and that the effect of the change, if any, may be material to the financial statements. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid debt instruments purchased with maturities of three months or less to be cash equivalents. The Company maintains accounts primarily at two financial institutions. At times throughout the year, the Company’s cash and equivalents balances may exceed amounts insured by the Federal Deposit Insurance Corporation. Cash in money market funds is not federally insured. Management believes these financial institutions have strong credit ratings and that the credit risk related to these deposits is minimal. The Company has not experienced any losses in such accounts. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In 2016 the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 is intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit. For public entities, deemed small reporting companies, ASU 2016-13 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company has not yet fully evaluated the potential effects of adopting ASU 2016-13 on the Company’s results of operations, financial position or cash flows. |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Of Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | Information regarding the Fair Value Of Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Nonrecurring Fair Value at December 31, 2021 Assets: Quoted Prices in Active Markets for Identical Instruments Significant Other Observable Inputs Significant Unobservable Inputs Total Bond portfolio $ — $ — $ 7,142,094 $ 7,142,094 Impaired loans $ — $ — $ 4,496,970 $ 4,496,970 Real estate held for sale $ — $ — $ 328,996 $ 328,996 Nonrecurring Fair Value at December 31, 2020 Assets: Quoted Prices in Active Markets for Identical Instruments Significant Other Observable Inputs Significant Unobservable Inputs Total Bond portfolio $ — $ — $ 4,650,372 $ 4,650,372 Impaired loans $ — $ — $ 5,004,424 $ 5,004,424 Real estate held for sale $ — $ — $ 428,996 $ 428,996 |
quantitative information about nonrecurring Level 3 fair value measurements | The following presents quantitative information about nonrecurring Level 3 fair value measurements Fair Value Valuation Technique Significant Unobservable Inputs(s) Range/Weighted December 31, 2021 Bond Portfolio $7,142,094 Market or Income Approach Discount to Appraised Values 10-50% Impaired Loans $4,496,970 Market or Income Approach Discount to Appraised Values 10-100% Real Estate Held for Sale $328,996 Market or Income Approach Discount to Appraised Values 10-20% December 31, 2020 Bond Portfolio $4,650,372 Market or Income Approach Discount to Appraised Values 10-20% Impaired Loans $5,004,424 Market or Income Approach Discount to Appraised Values 10-100% Real Estate Held for Sale $428,996 Market or Income Approach Discount to Appraised Values 10-20% |
Estimated Fair Values and Carrying Values | The Estimated Fair Values and Carrying Values December 31, 2021 Level 1 Level 2 Level 3 Carrying Value at December 31, 2021 Cash and equivalents $ 114,798 $ — $ — $ 114,798 Accounts receivable 79,887 — — 79,887 Interest receivable 89,280 — — 89,280 Mortgage loans receivable — — 13,744,525 13,744,525 Bond portfolio — — 16,337,978 16,337,978 Line of credit 300,000 — — 300,000 Secured investor certificates — 22,278,500 — 22,278,500 December 31, 2020 Level 1 Level 2 Level 3 Carrying Value Cash and equivalents $ 87,702 $ — $ — $ 87,702 Accounts receivable 101,532 — — 101,532 Interest receivable 242,019 — — 242,019 Mortgage loans receivable — — 16,605,967 16,605,967 Bond portfolio — — 18,100,711 18,100,711 Line of credit 2,288,000 — — 2,288,000 Secured investor certificates — 23,916,500 — 23,916,500 |
MORTGAGE LOANS RECEIVABLE (Tabl
MORTGAGE LOANS RECEIVABLE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Allowance for Mortgage Loans | A summary of transactions in the Allowance for Mortgage Loans Twelve Months Ended Balance at December 31, 2020 $ 1,493,996 Provision (credit) for loan losses (3,242) Charge-offs (4,320) Balance at December 31, 2021 $ 1,486,434 Twelve Months Ended Balance at December 31, 2019 $ 1,429,487 Provisions for loan losses 64,509 Balance at December 31, 2020 $ 1,493,996 |
Maturity Schedule for Mortgage Loans Receivable | impact of COVID-19 on the Company’s investments or operations cannot be reasonably estimated at this time. The contractual Maturity Schedule for Mortgage Loans Receivable Mortgage Loans 2022 $ 779,884 2023 607,505 2024 1,595,826 2025 1,107,088 2026 1,034,196 Thereafter 10,259,177 Subtotal 15,383,676 Less loan loss (1,486,434) Less deferred origination fees (152,717 Total $ 13,744,255 |
Restructured Loans | Restructured Loans December 31, 2021 Type of Loan Number of Loans Original Principal Balance Original Average Interest Rate Unpaid Principal Balance Modified Average Interest Rate Mortgage Loans 6 $4,196,544 8.101% $3,415,692 6.431% December 31, 2020 Type of Loan Number of Loans Original Principal Balance Original Average Interest Rate Unpaid Principal Balance Modified Average Interest Rate Mortgage Loans 7 $4,696,544 8.127% $3,523,123 6.466% |
BOND PORTFOLIO (Tables)
BOND PORTFOLIO (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Maturity Schedule Bond Portfolio | The contractual maturity schedule for the bond portfolio as of December 31, 2021, is as follows: Maturity Schedule Bond Portfolio Bond Portfolio 2022 $ 257,000 2023 130,000 2024 455,000 2025 260,000 2026 631,000 Thereafter 16,360,483 Subtotal 18,093,483 Less other than temporary impairment on bond portfolio (1,755,504 Totals $ 16,337,978 |
Temporary Impairment Bond Portfolio | Temporary Impairment Bond Portfolio December 31, 2021 December 31, 2020 Beginning Balance $ 834,226 $ 658,000 Additions to other than temporary impairment 940,021 176,226 Credit loss realized from redemption of securities (18,743 ) — Ending Balance $ 1,755,504 $ 834,226 |
SECURED INVESTOR CERTIFICATES (
SECURED INVESTOR CERTIFICATES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Maturity Schedule for the Secured Investor Certificates | The estimated Maturity Schedule for the Secured Investor Certificates 2022 $ 1,042,000 2023 3,404,000 2024 1,433,000 2025 1,202,000 2026 747,000 Thereafter 14,450,500 Subtotal $22,278,500 Less deferred offering costs (675,746) Totals $ 21,602,754 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Accounting Policies [Abstract] | ||
Principal Balance Loans 90 Days Past Due | $ 2,368,000 | $ 2,795,000 |
Real Estate Held for Sale | $ 328,996 | $ 428,996 |
Fair Value Of Assets and Liabil
Fair Value Of Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Real Estate Held For Sale | $ 328,996 | $ 428,996 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Bond Portoflio | ||
Impaired Loans | ||
Real Estate Held For Sale | ||
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Bond Portoflio | ||
Impaired Loans | ||
Real Estate Held For Sale | ||
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Bond Portoflio | 7,142,094 | 4,650,372 |
Impaired Loans | 4,496,970 | 5,004,424 |
Real Estate Held For Sale | 328,996 | 428,996 |
Fair Value, Inputs, Level 1, 2 and 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Bond Portoflio | 7,142,094 | 4,650,372 |
Impaired Loans | 4,496,970 | 5,004,424 |
Real Estate Held For Sale | $ 328,996 | $ 428,996 |
Estimated Fair Values and Carry
Estimated Fair Values and Carrying Values (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and equivalents | $ 114,798 | $ 87,702 |
Accounts receivable | 79,887 | 101,532 |
Interest receivable | 89,280 | 242,019 |
Bond portfolio | 16,337,525 | 18,100,711 |
Line of credit | 300,000 | 2,288,000 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and equivalents | 114,798 | 87,702 |
Accounts receivable | 79,887 | 101,532 |
Interest receivable | 89,280 | 242,019 |
Mortgage loans receivable | ||
Bond portfolio | ||
Line of credit | 300,000 | 2,288,000 |
Secured investor certificates | ||
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and equivalents | ||
Accounts receivable | ||
Interest receivable | ||
Mortgage loans receivable | ||
Bond portfolio | ||
Line of credit | ||
Secured investor certificates | 22,278,500 | 23,916,500 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and equivalents | ||
Accounts receivable | ||
Interest receivable | ||
Mortgage loans receivable | 13,744,525 | 16,605,967 |
Bond portfolio | 16,337,978 | 18,100,711 |
Line of credit | ||
Secured investor certificates | ||
Fair Value, Inputs, Level 1, 2 and 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and equivalents | 114,798 | 87,702 |
Accounts receivable | 79,887 | 101,532 |
Interest receivable | 89,280 | 242,019 |
Mortgage loans receivable | 13,744,525 | 16,605,967 |
Bond portfolio | 16,337,978 | 18,100,711 |
Line of credit | 300,000 | 2,288,000 |
Secured investor certificates | $ 22,278,500 | $ 23,916,500 |
FAIR VALUE MEASUREMENT (Details
FAIR VALUE MEASUREMENT (Details Narrative) - USD ($) | Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value Disclosures [Abstract] | |||
[custom:CarryingValueBondsHeldToMaturity-0] | $ 8,897,598 | $ 5,484,988 | |
[custom:BondPortfolio-0] | 7,142,094 | 4,650,372 | |
[custom:ImpairmentReserveBondPortfolio-0] | 1,755,504 | 834,226 | |
[custom:CarryingValueImpairedLoans-0] | 5,983,404 | 6,498,421 | |
[custom:FairValueImpairedLoans-0] | 4,496,970 | 5,004,424 | |
Financing Receivable, Allowance for Credit Loss, Current | $ 1,486,434 | $ 1,486,434 | $ 1,493,996 |
Allowance for Mortgage Loans (D
Allowance for Mortgage Loans (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Receivables [Abstract] | |||
[custom:CustomAllowanceMortgageLoansReceivable-0] | $ 1,486,434 | $ 1,493,996 | $ 1,429,487 |
[custom:ProvisionForLoanLosses] | (3,242) | $ 64,509 | |
Charge-Offs | $ (4,320) |
Maturity Schedule for Mortgage
Maturity Schedule for Mortgage Loans Receivable (Details) - USD ($) | Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | |||
2022 | $ 22,278,500 | ||
Less loan loss | (1,486,434) | $ (1,486,434) | $ (1,493,996) |
Less deferred origination fees | (152,717) | (198,816) | |
Total | 13,774,525 | $ 16,605,967 | |
Mortgages [Member] | |||
Debt Instrument [Line Items] | |||
2022 | 779,884 | ||
2023 | 607,505 | ||
2024 | 1,595,826 | ||
2025 | 1,107,088 | ||
2026 | 1,034,196 | ||
Thereafter | 10,259,177 | ||
Subtotal | 15,383,676 | ||
Less loan loss | (1,486,434) | ||
Less deferred origination fees | (152,717) | ||
Total | $ 13,744,255 |
Restructured Loans (Details)
Restructured Loans (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Receivables [Abstract] | ||
Number of Loans | $ 6 | $ 7 |
Original Principal Balance | $ 4,196,544 | $ 4,696,544 |
Original Average Interest Rate | 8.101% | 8.127% |
Unpaid Principal Balance | $ 3,415,692 | $ 3,523,123 |
Modified Average Interest Rate | 6.431% | 6.466% |
MORTGAGE LOANS RECEIVABLE (Deta
MORTGAGE LOANS RECEIVABLE (Details Narrative) - USD ($) | Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Receivables [Abstract] | |||
Mortgage Loans Receivable Gross | $ 15,383,676 | $ 18,298,779 | |
Allowance For Mortgage Loans Receivable | 1,486,434 | $ 1,486,434 | 1,493,996 |
Principal Balance Mortgage Loans Receivable Net of Allowance | 5,983,000 | 6,498,000 | |
Principal Balance Loans in Default | 921,583 | 588,787 | |
Current Value Loans in Default | 173,900 | 37,771 | |
Valuation Allowance Impaired Loans | 747,683 | $ 551,016 | |
Loans Exceeding 90 Days Past Due | 2,552,000 | ||
Loans Interest Only Payments | 2,119,000 | ||
Princiapl Balance Loans Paying Interest Only | 217,000 | ||
Principal Balance Loan in Default | $ 377,761 |
Maturity Schedule Bond Portfoli
Maturity Schedule Bond Portfolio (Details) - USD ($) | Dec. 31, 2021 | Sep. 30, 2021 |
Debt Instrument [Line Items] | ||
2022 | $ 22,278,500 | |
Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
2022 | $ 257,000 | |
2023 | 130,000 | |
2024 | 455,000 | |
2025 | 260,000 | |
2026 | 631,000 | |
Thereafter | 16,360,483 | |
Subtotal | $ 18,093,483 |
Temporary Impairment Bond Portf
Temporary Impairment Bond Portfolio (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Disclosure [Abstract] | ||
Beginning Balance | $ 834,226 | $ 658,000 |
Additions to other than temporary impairment | 940,021 | 176,226 |
Credit loss realized from redemption of securities | (18,743) | |
Ending Balance | $ 1,755,504 | $ 834,226 |
BOND PORTFOLIO (Details Narrati
BOND PORTFOLIO (Details Narrative) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Disclosure [Abstract] | ||
Church Bonds Owned Gross | $ 18,093,483 | $ 18,934,937 |
Bond Reserve Fund | 1,755,504 | 834,226 |
Maturities and Redemption of Bonds | 842,000 | 251,000 |
Bond Portfolio | $ 7,142,094 | $ 4,650,372 |
Maturity Schedule for the Secur
Maturity Schedule for the Secured Investor Certificates (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Disclosure [Abstract] | ||
2023 | $ 3,404,000 | |
2024 | 1,433,000 | |
2025 | 1,202,000 | |
2026 | 747,000 | |
Thereafter | 14,450,500 | |
Subtotal | 22,278,500 | |
Deferred Finance Costs, Own-share Lending Arrangement, Issuance Costs, Net | (675,746) | $ (769,178) |
Totals | $ 21,602,754 |
SECURED INVESTOR CERTIFICATES_2
SECURED INVESTOR CERTIFICATES (Details Narrative) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Disclosure [Abstract] | ||
Renewal of Secured Investor Certificates | $ 530,000 | $ 1,007,000 |
TRANSACTIONS WITH AFFILIATES (D
TRANSACTIONS WITH AFFILIATES (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transactions [Abstract] | ||
Advisory Fees | $ 268,000 | $ 284,000 |
Lease, Cost | $ 30,000 |
LINE OF CREDIT (Details Narrati
LINE OF CREDIT (Details Narrative) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Line Of Credit | ||
Line of Credit | $ 4,000,000 | |
Outstanding Balance Line of Credit | $ 300,000 | $ 2,288,000 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Net Loss | $ 1,295,201 | $ 125,859 |
Dividends, Common Stock, Cash | 16,766 | 134,176 |
Current Federal, State and Local, Tax Expense (Benefit) | 2,574,000 | |
Tax Credit Carryforward, Amount | $ 1,985,000 | $ 1,934,000 |