Franklin Credit Management Corp

CIK:0001555458|SEC Filings

STATEMENTS OF OPERATIONS (UNAUDITED) (USD $)	3 Months Ended		9 Months Ended
STATEMENTS OF OPERATIONS (UNAUDITED) (USD $)	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Revenues:
Servicing income	$ 1,721,703	$ 2,259,702	$ 6,131,958	$ 7,665,057
Gain on redemption of preferred shares	3,655,936		3,655,936
Other income	92,388	120,126	709,646	360,093
Interest income	3,805	3,797	11,264	11,887
Total revenues	5,473,832	2,383,625	10,508,804	8,037,037
Operating Expenses:
Collection, general and administrative	2,725,899	3,153,899	8,823,587	9,941,322
Depreciation	14,324	19,736	54,046	165,166
Interest - former parent company	5,528	7,370	17,758	23,224
Total expenses	2,745,751	3,181,005	8,895,391	10,129,712
Net income (loss)	2,728,081	(797,380)	1,613,413	(2,092,675)
Preferred stock dividend	56,584		123,084
Net income (loss) attributable to common stockholders	$ 2,671,497	$ (797,380)	$ 1,490,329	$ (2,092,675)
Net loss per common share
Basic	$ 0.27	$ (0.08)	$ 0.15	$ (0.21)
Diluted	$ 0.27	$ (0.08)	$ 0.15	$ (0.21)
Weighted average number of common shares outstanding
Basic	10,035,993	10,035,993	10,035,993	10,035,993
Diluted	10,035,993	10,035,993	10,035,993	10,035,993

STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $)	9 Months Ended
STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $)	Sep. 30, 2014	Sep. 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ 1,613,413	$ (2,092,675)
Changes in operating activities:
Depreciation	54,046	165,166
Gain on redemption of preferred shares	(3,655,936)
Changes in operating assets and liabilities:
Restricted cash	1,249,915	1,794,429
Receivables	563,901	37,748
Other assets	(31,456)	(169,680)
Accrued expenses and other current liabilities	(1,498,763)	1,470,143
Servicing liabilities	(1,261,178)	(1,805,692)
Net cash used in operating activities	(2,966,058)	(600,561)
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of Investment in Bosco VI joint venture		250,000
Recovery of investment in Bosco VI joint venture	94,974	138,837
Purchase of equipment, furniture and fixtures		(8,955)
Net cash provided by investing activities	94,974	379,882
CASH FLOWS FROM FINANCING ACTIVITIES:
Capital contribution		500,000
Issuance of preferred stock	2,700,000
Issuance of note payable		60,000
Principal payments of note payable	(166,350)	(166,350)
Net cash provided by financing activities	2,533,650	393,650
NET CHANGE IN CASH AND CASH EQUIVALENTS	(337,434)	172,971
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	1,305,580	585,429
CASH AND CASH EQUIVALENTS, END OF PERIOD	968,146	758,400
SUPPLEMENTAL DISCLOSURE:
Cash paid for interest	17,758	23,224
Non-cash investing and financing activities:
Preferred stock dividend	123,084
Redemption of preferred stock into property	$ 4,100,000

BALANCE SHEETS (UNAUDITED) (USD $)	Sep. 30, 2014	Dec. 31, 2013
ASSETS
Cash and cash equivalents	$ 968,146	$ 1,305,580
Restricted cash	14,064,040	15,313,955
Investment in Bosco VI	232,220	327,194
Receivables	1,871,046	2,434,947
Building, furniture and equipment, net	36,629	408,927
Other assets	744,841	713,385
Total assets	17,916,922	20,503,988
Liabilities:
Servicing liabilities	6,514,224	7,775,402
Note payable	688,433	854,783
Accrued expenses and other current liabilities	3,507,419	4,757,286
Total liabilities	10,710,076	13,387,471
Commitments and Contingencies
Preferred stock temporary equity 3,000,000 authorized shares; issued and outstanding 0 at September 30, 2014 and 700,000 at December 31, 2013:		1,400,000
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value, 22,000,000 authorized shares; issued and outstanding: 10,035,993	100,360	100,360
Additional paid in capital	8,403,736	8,403,736
Retained deficit	(1,297,250)	(2,787,579)
Total stockholders' equity	7,206,846	5,716,517
Total liabilities and stockholders' equity	$ 17,916,922	$ 20,503,988