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<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>1. Description of Business and Basis of Presentation</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b> </b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><b>Description of Business</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white; text-indent: 0.5in"><b> </b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i><u>Description of Business</u></i></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0pt"> Shepherd’s Finance,
LLC and subsidiaries (the “Company”, “we” or “our”) is a finance company that engages in commercial
lending to residential homebuilders, financing construction of single family homes and residential development. The loans are extended
to residential homebuilders and, as such, are commercial loans.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We anticipate expanding our lending capacity
and funding our business operations by continued extension of unsecured subordinated notes (“Notes”) to the general
public, which Notes are unsecured subordinated debt. Eventually, the Company intends to repay the debt from affiliates with secured
debt from a bank or through other liquidity.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i><u>Basis of Presentation</u></i></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The unaudited interim condensed consolidated
financial statements, in the opinion of management, reflect all adjustments necessary for a fair presentation of the consolidated
financial position, results of operations and cash flows for the periods presented. Such adjustments are of a normal, recurring
nature. The results of operations for any interim period are not necessarily indicative of results expected for the fiscal year
ending December 31, 2013. While certain information and disclosures normally included in financial statements prepared in accordance
with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or
omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”), management believes
that the disclosures herein are adequate to make the condensed consolidated information presented not misleading. These unaudited
interim condensed consolidated financial statements should be read in conjunction with the year end 2012 consolidated financial
statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. The
accounting policies followed by the Company are set forth in Note 2 - <i>Summary of Significant Accounting Policies</i> of the
notes to those 2012 statements.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><b>Liquidity and Capital
Resources</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">The Company has a limited
operating history with our current business model, and our operations are subject to certain risks and uncertainties, particularly
related to the concentration of our current operations to a single customer and geographic region, as well as the evolution of
the current economic environment and its impact on the United States real estate and housing markets. Both the concentration of
risk and the economic environment could directly or indirectly impact losses related to certain transactions and access to
and cost of adequate financing.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">The Company’s
anticipated primary source of liquidity going forward is interest income and/or principal repayments related to the loans, as well
as funds borrowed from creditors, some of whom are currently members and affiliates.  Our public Notes offering, which allows
us to borrow money, was declared effective by the SEC on October 4, 2012 and has been registered and declared effective in 38 states.
We began to advertise in March of 2013 and have received $713 in Notes proceeds as of June 30, 2013. We anticipate continuing our
sales efforts in the third quarter of 2013, focusing on the efforts that proved fruitful in the second quarter. The Company’s
ability to fund its operations remains dependent upon the sole borrower’s ability to continue paying interest and/or principal
and our ability to obtain additional financing, as needed, from the members, general public and other entities. </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">We generated income
(loss) from continuing operations of ($41) and $66 for the six months ended June 30, 2013 and 2012, respectively. At June 30, 2013
and December 31, 2012, we had cash on hand of $24 and $646, respectively, and our outstanding debt totaled $2,769 and $2,610, respectively,
which was unsecured or payable to related parties. As of June 30, 2013 and December 31, 2012, the amount that we have not loaned,
but are obligated to potentially lend to our customers based on our agreements with them, was $508 and $588, respectively. Our
availability on our line of credit from our members was $944 and $392 as of June 30, 2013 and December 31, 2012, respectively.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">Our current plan is
to expand the commercial lending program by using current liquidity and available funding (including funding from our Notes program).
We have anticipated the costs of this expansion and the continuing costs of maintaining our public company status, and we anticipate
generating, through normal operations, the cash flows and liquidity necessary to meet our operating, investing and financing requirements.
As noted above, the two most significant factors driving our current plans are the continued payments of principal and interest
by our sole homebuilder customer and the public offering of Notes. If actual results differ materially from our current plan or
if expected financing is not available, we believe we have the ability to reduce future cash outlays by withdrawing our public
company status, which would reduce our audit and legal expenses. We also believe we have the ability and intent to obtain funding
and generate net worth through additional debt or equity infusions of cash, if needed. There can be no assurance, however, that
we will be able to implement our strategies or obtain additional financing under favorable terms, if at all.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>2. Summary of Significant Accounting Policies</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Segment Reporting</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We report all ongoing operations in one segment,
commercial lending.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="color: black"><b>Use of Estimates</b></font><i>
</i></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="color: black">The preparation of
consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated
financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ
from those estimates. I</font>t is reasonably possible that market conditions could deteriorate, which could materially affect
our consolidated financial position, results of operations and cash flows. Among other effects, such changes could result in the
need to establish an allowance for loan losses.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Revenue Recognition</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Interest income generally is recognized on an
accrual basis. The accrual of interest is generally discontinued on all loans past due 90 days or more. All interest accrued but
not collected for loans that are placed on nonaccrual or charged off is reversed against interest income, unless management believes
that the accrued interest is recoverable through liquidation of collateral. Interest received on nonaccrual loans is applied against
principal. Interest on accruing impaired loans is recognized as long as such loans do not meet the criteria for nonaccrual status.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Fair Value Measurements</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has established a framework for
measuring fair value under U.S. GAAP using a hierarchy, which requires the Company to maximize the use of observable inputs and
minimize the use of unobservable inputs. Fair value measurements are an exit price, representing the amount that would be received
to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Three levels of inputs
are used to measure fair value, as follows:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Level 1 – quoted prices
in active markets for identical assets or liabilities;</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">Level 2 – quoted prices in active
markets for similar assets and liabilities and inputs that are observable for the asset or liability; or</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Level 3 – unobservable
inputs, such as discounted cash flow models or valuations.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The determination of where assets and liabilities
fall within this hierarchy is based upon the lowest level of input that is significant to the fair value measurement. See Note
3.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Loans Receivable</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Loans are stated at the amount of unpaid principal,
net of any allowances for loan losses, and adjusted for the net amount of direct costs and nonrefundable loan fees associated with
lending. The net amount of nonrefundable loan origination fees and direct costs associated with the lending process, including
commitment fees, is deferred and accreted to interest income over the lives of the loans using a method that approximates the interest
method. Substantially all of the Company’s loans are secured by real estate, currently all in a suburb of Pittsburgh, Pennsylvania.
Accordingly, the ultimate collectability of a substantial portion of these loans is susceptible to changes in market conditions
in that area.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Past due loans are loans contractually past
due 30 days or more as to principal or interest payments. A loan is classified as nonaccrual, and the accrual of interest on such
loan is discontinued, when the contractual payment of principal or interest becomes 90 days past due. In addition, a loan may be
placed on nonaccrual at any other time management has serious doubts about further collectability of principal or interest according
to the contractual terms, even though the loan is currently performing. A loan may remain on accrual status if it is in the process
of collection or well-secured (i.e. the loan has sufficient collateral value). Loans are restored to accrual status when the obligation
is brought current or has performed in accordance with the contractual terms for a reasonable period of time and the ultimate collectability
of the total contractual principal and interest is no longer in doubt.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">A loan is considered impaired when, based on
current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or
interest when due according to the contractual terms of the loan agreement. Impaired loans, or portions thereof, are charged off
when deemed uncollectible. Once a loan is 90 days past due, management begins a workout plan with the borrower or commences its
foreclosure process on the collateral.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Allowance for Loan Losses</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The allowance for loan losses, when determined
to be necessary, is maintained at a level believed adequate by management to absorb probable losses inherent in the loan portfolio.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">For loans to one borrower with committed balances
less than 10% of our total committed balances on all loans extended to all customers, we analyze for impairment all loans which
are more than 60 days past due at the end of a quarter. For loans to one borrower with committed balances equal to or greater than
10% of our total committed balances on all loans extended to all customers, we analyze all loans for impairment. The analysis of
loans, if required, includes a comparison of estimated collateral value to the principal amount of the loan. If the value determined
is less than the principal amount due (less any builder deposit), then the difference is included in the loan loss. As values change,
estimated loan losses may be provided for more or less than the previous period, and some loans may not need a loss provision based
on payment history.  For homes which are partially complete, we appraise on an as-is and completed basis, and use the one
that more closely aligns with our planned method of disposal for the property.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">For loans that are individually evaluated for
impairment, appraisals have been prepared within the last 13 months. There are also broker’s opinions of value (“BOV”)
prepared, if the appraisal is more than six months old. The lower of any BOV prepared in the last six months, or appraisal done
in the last 13 months, is used, unless we determine a BOV to be invalid based on the comparable sales used. If we determine a BOV
to be invalid, we will use the appraised value. <font style="color: black">Appraised values are adjusted down for estimated costs
associated with asset disposal.</font></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Deferred Financing Costs, Net</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We defer certain costs associated with financing
activities related to the issuance of debt securities (Deferred financing costs). These costs consist primarily of professional
fees incurred related to the transactions. Deferred financing costs are amortized into interest expense over the life of the related
debt.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following is a roll forward of deferred
financing costs:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt; color: black"><b>Six Months</b></font><br />
<font style="font-size: 8pt; color: black"><b>Ended June 30,</b></font><br />
<font style="font-size: 8pt; color: black"><b>2013</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt; color: black"><b>Year Ended December 31, </b></font><br />
<font style="font-size: 8pt; color: black"><b>2012</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt; color: black"><b>Six Months</b></font><br />
<font style="font-size: 8pt; color: black"><b>Ended June 30,</b></font><br />
<font style="font-size: 8pt; color: black"><b>2012</b></font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="text-align: justify"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="width: 52%; padding-left: 5.4pt; text-align: justify"><font style="font-size: 8pt; color: black">Deferred financing costs, beginning balance</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt; color: black">$</font></td>
<td style="width: 13%; text-align: right"><font style="font-size: 8pt; color: black">598</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt; color: black">$</font></td>
<td style="width: 13%; text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt; color: black">$</font></td>
<td style="width: 13%; text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-bottom: 1pt; padding-left: 11pt; text-align: justify"><font style="font-size: 8pt; color: black">Additions</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt; color: black">42</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt; color: black">598</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt; color: black">412</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt; text-align: justify"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 5.4pt; text-align: justify"><font style="font-size: 8pt; color: black">Deferred financing costs, ending balance</font></td>
<td> </td>
<td><font style="font-size: 8pt; color: black">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">640</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 8pt; color: black">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">598</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 8pt; color: black">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">412</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt; text-align: justify"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-bottom: 1pt; padding-left: 11pt; text-align: justify"><font style="font-size: 8pt; color: black">Less accumulated amortization</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt; color: black">(11</font></td>
<td style="padding-bottom: 1pt"><font style="font-size: 8pt; color: black">)</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt; color: black">(2</font></td>
<td style="padding-bottom: 1pt"><font style="font-size: 8pt; color: black">)</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt; text-align: justify"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt; text-align: justify"><font style="font-size: 8pt; color: black">Deferred financing costs, net</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 8pt; color: black">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt; color: black">629</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 8pt; color: black">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt; color: black">596</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 8pt; color: black">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt; color: black">412</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following is a roll forward of the accumulated
amortization of deferred financing costs:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt; color: black"><b>Six Months</b></font><br />
<font style="font-size: 8pt; color: black"><b>Ended June 30,</b></font><br />
<font style="font-size: 8pt; color: black"><b>2013</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt; color: black"><b>Year Ended December 31, </b></font><br />
<font style="font-size: 8pt; color: black"><b>2012</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt; color: black"><b>Six Months</b></font><br />
<font style="font-size: 8pt; color: black"><b>Ended June 30,</b></font><br />
<font style="font-size: 8pt; color: black"><b>2012</b></font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="text-align: justify"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="width: 52%; padding-left: 5.4pt; text-align: justify"><font style="font-size: 8pt; color: black">Accumulated amortization, beginning balance</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt; color: black">$</font></td>
<td style="width: 13%; text-align: right"><font style="font-size: 8pt; color: black">2</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt; color: black">$</font></td>
<td style="width: 13%; text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt; color: black">$</font></td>
<td style="width: 13%; text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-bottom: 1pt; padding-left: 11pt; text-align: justify"><font style="font-size: 8pt; color: black">Additions</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt; color: black">9</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt; color: black">2</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt; text-align: justify"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt; text-align: justify"><font style="font-size: 8pt; color: black">Accumulated amortization, ending balance</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 8pt; color: black">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt; color: black">11</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 8pt; color: black">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt; color: black">2</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 8pt; color: black">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Income Taxes</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The entities included in the condensed consolidated
financial statements are organized as pass-through entities under the Internal Revenue Code. As such, taxes are the responsibility
of the members. Other significant taxes for which the Company is liable are recorded on an accrual basis.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company applies ASC Topic 740, <i>Income
Taxes</i> (“ASC 740”). ASC 740 provides guidance for how uncertain tax positions should be recognized, measured, presented
and disclosed in the consolidated financial statements and requires the evaluation of tax positions taken or expected to be taken
in the course of preparing the Company’s consolidated financial statements to determine whether the tax positions are “more-likely-than-not”
to be sustained by the applicable tax authority. Tax positions with respect to income tax at the LLC level not deemed to meet the
“more-likely-than-not” threshold would be recorded as a tax benefit or expense in the appropriate period. Management
concluded that there are no uncertain tax positions that should be recognized in the consolidated financial statements. With few
exceptions, the Company is no longer subject to income tax examinations for years prior to 2009.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company’s policy is to record interest
and penalties related to taxes in interest expense on the consolidated statements of operations. There have been no significant
interest or penalties assessed or paid.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b>Recent Accounting Pronouncements</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In December 2011, the FASB issued ASU 2011-11,
<i>Disclosures about Offsetting Assets and Liabilities</i> which created new disclosure requirements about the nature of an entity’s
rights of offset and related arrangements associated with its financial instruments and derivative instruments. The disclosures
are limited to financial instruments and derivatives subject to enforceable master netting arrangements or similar agreements and
exclude loans and deposits at the same institution. The amendments affect all entities that have financial instruments and derivatives
that are either offset in the balance sheet or subject to an enforceable master netting arrangement or similar agreement regardless
of whether they are offset in the balance sheet. The ASU requires entities to disclose, separately for financial assets and liabilities,
including derivatives, the gross amounts of recognized financial assets and liabilities; the amounts offset under current U.S.
GAAP; the net amounts presented in the balance sheet; the amounts subject to an enforceable master netting arrangement or similar
agreement that were not included in the offset amount above, and the reconciling amount. The disclosure requirements are effective
for annual and interim reporting periods beginning on or after January 1, 2013, with retrospective application required. The Company
has reviewed this ASU and determined that it does not alter the disclosure requirements of the Company.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Segment Reporting</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We report all ongoing operations in one segment,
commercial lending.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="color: black"><b>Use of Estimates</b></font><i>
</i></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="color: black">The preparation of
consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated
financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ
from those estimates. I</font>t is reasonably possible that market conditions could deteriorate, which could materially affect
our consolidated financial position, results of operations and cash flows. Among other effects, such changes could result in the
need to establish an allowance for loan losses.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Revenue Recognition</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Interest income generally is recognized on an
accrual basis. The accrual of interest is generally discontinued on all loans past due 90 days or more. All interest accrued but
not collected for loans that are placed on nonaccrual or charged off is reversed against interest income, unless management believes
that the accrued interest is recoverable through liquidation of collateral. Interest received on nonaccrual loans is applied against
principal. Interest on accruing impaired loans is recognized as long as such loans do not meet the criteria for nonaccrual status.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Fair Value Measurements</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has established a framework for
measuring fair value under U.S. GAAP using a hierarchy, which requires the Company to maximize the use of observable inputs and
minimize the use of unobservable inputs. Fair value measurements are an exit price, representing the amount that would be received
to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Three levels of inputs
are used to measure fair value, as follows:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Level 1 – quoted prices
in active markets for identical assets or liabilities;</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">Level 2 – quoted prices in active
markets for similar assets and liabilities and inputs that are observable for the asset or liability; or</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Level 3 – unobservable
inputs, such as discounted cash flow models or valuations.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The determination of where assets and liabilities
fall within this hierarchy is based upon the lowest level of input that is significant to the fair value measurement. See Note
3.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Loans Receivable</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Loans are stated at the amount of unpaid principal,
net of any allowances for loan losses, and adjusted for the net amount of direct costs and nonrefundable loan fees associated with
lending. The net amount of nonrefundable loan origination fees and direct costs associated with the lending process, including
commitment fees, is deferred and accreted to interest income over the lives of the loans using a method that approximates the interest
method. Substantially all of the Company’s loans are secured by real estate, currently all in a suburb of Pittsburgh, Pennsylvania.
Accordingly, the ultimate collectability of a substantial portion of these loans is susceptible to changes in market conditions
in that area.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Past due loans are loans contractually past
due 30 days or more as to principal or interest payments. A loan is classified as nonaccrual, and the accrual of interest on such
loan is discontinued, when the contractual payment of principal or interest becomes 90 days past due. In addition, a loan may be
placed on nonaccrual at any other time management has serious doubts about further collectability of principal or interest according
to the contractual terms, even though the loan is currently performing. A loan may remain on accrual status if it is in the process
of collection or well-secured (i.e. the loan has sufficient collateral value). Loans are restored to accrual status when the obligation
is brought current or has performed in accordance with the contractual terms for a reasonable period of time and the ultimate collectability
of the total contractual principal and interest is no longer in doubt.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">A loan is considered impaired when, based on
current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or
interest when due according to the contractual terms of the loan agreement. Impaired loans, or portions thereof, are charged off
when deemed uncollectible. Once a loan is 90 days past due, management begins a workout plan with the borrower or commences its
foreclosure process on the collateral.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Allowance for Loan Losses</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The allowance for loan losses, when determined
to be necessary, is maintained at a level believed adequate by management to absorb probable losses inherent in the loan portfolio.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">For loans to one borrower with committed balances
less than 10% of our total committed balances on all loans extended to all customers, we analyze for impairment all loans which
are more than 60 days past due at the end of a quarter. For loans to one borrower with committed balances equal to or greater than
10% of our total committed balances on all loans extended to all customers, we analyze all loans for impairment. The analysis of
loans, if required, includes a comparison of estimated collateral value to the principal amount of the loan. If the value determined
is less than the principal amount due (less any builder deposit), then the difference is included in the loan loss. As values change,
estimated loan losses may be provided for more or less than the previous period, and some loans may not need a loss provision based
on payment history.  For homes which are partially complete, we appraise on an as-is and completed basis, and use the one
that more closely aligns with our planned method of disposal for the property.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">For loans that are individually evaluated for
impairment, appraisals have been prepared within the last 13 months. There are also broker’s opinions of value (“BOV”)
prepared, if the appraisal is more than six months old. The lower of any BOV prepared in the last six months, or appraisal done
in the last 13 months, is used, unless we determine a BOV to be invalid based on the comparable sales used. If we determine a BOV
to be invalid, we will use the appraised value. <font style="color: black">Appraised values are adjusted down for estimated costs
associated with asset disposal.</font></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Deferred Financing Costs, Net</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We defer certain costs associated with financing
activities related to the issuance of debt securities (Deferred financing costs). These costs consist primarily of professional
fees incurred related to the transactions. Deferred financing costs are amortized into interest expense over the life of the related
debt.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following is a roll forward of deferred
financing costs:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt; color: black"><b>Six Months</b></font><br />
<font style="font-size: 8pt; color: black"><b>Ended June 30,</b></font><br />
<font style="font-size: 8pt; color: black"><b>2013</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt; color: black"><b>Year Ended December 31, </b></font><br />
<font style="font-size: 8pt; color: black"><b>2012</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt; color: black"><b>Six Months</b></font><br />
<font style="font-size: 8pt; color: black"><b>Ended June 30,</b></font><br />
<font style="font-size: 8pt; color: black"><b>2012</b></font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="text-align: justify"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="width: 52%; padding-left: 5.4pt; text-align: justify"><font style="font-size: 8pt; color: black">Deferred financing costs, beginning balance</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt; color: black">$</font></td>
<td style="width: 13%; text-align: right"><font style="font-size: 8pt; color: black">598</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt; color: black">$</font></td>
<td style="width: 13%; text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt; color: black">$</font></td>
<td style="width: 13%; text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-bottom: 1pt; padding-left: 11pt; text-align: justify"><font style="font-size: 8pt; color: black">Additions</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt; color: black">42</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt; color: black">598</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt; color: black">412</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt; text-align: justify"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 5.4pt; text-align: justify"><font style="font-size: 8pt; color: black">Deferred financing costs, ending balance</font></td>
<td> </td>
<td><font style="font-size: 8pt; color: black">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">640</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 8pt; color: black">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">598</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 8pt; color: black">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">412</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt; text-align: justify"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-bottom: 1pt; padding-left: 11pt; text-align: justify"><font style="font-size: 8pt; color: black">Less accumulated amortization</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt; color: black">(11</font></td>
<td style="padding-bottom: 1pt"><font style="font-size: 8pt; color: black">)</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt; color: black">(2</font></td>
<td style="padding-bottom: 1pt"><font style="font-size: 8pt; color: black">)</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt; text-align: justify"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt; text-align: justify"><font style="font-size: 8pt; color: black">Deferred financing costs, net</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 8pt; color: black">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt; color: black">629</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 8pt; color: black">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt; color: black">596</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 8pt; color: black">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt; color: black">412</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following is a roll forward of the accumulated
amortization of deferred financing costs:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt; color: black"><b>Six Months</b></font><br />
<font style="font-size: 8pt; color: black"><b>Ended June 30,</b></font><br />
<font style="font-size: 8pt; color: black"><b>2013</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt; color: black"><b>Year Ended December 31, </b></font><br />
<font style="font-size: 8pt; color: black"><b>2012</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt; color: black"><b>Six Months</b></font><br />
<font style="font-size: 8pt; color: black"><b>Ended June 30,</b></font><br />
<font style="font-size: 8pt; color: black"><b>2012</b></font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="text-align: justify"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="width: 52%; padding-left: 5.4pt; text-align: justify"><font style="font-size: 8pt; color: black">Accumulated amortization, beginning balance</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt; color: black">$</font></td>
<td style="width: 13%; text-align: right"><font style="font-size: 8pt; color: black">2</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt; color: black">$</font></td>
<td style="width: 13%; text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt; color: black">$</font></td>
<td style="width: 13%; text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-bottom: 1pt; padding-left: 11pt; text-align: justify"><font style="font-size: 8pt; color: black">Additions</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt; color: black">9</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt; color: black">2</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt; text-align: justify"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt; text-align: justify"><font style="font-size: 8pt; color: black">Accumulated amortization, ending balance</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 8pt; color: black">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt; color: black">11</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 8pt; color: black">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt; color: black">2</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 8pt; color: black">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Income Taxes</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The entities included in the condensed consolidated
financial statements are organized as pass-through entities under the Internal Revenue Code. As such, taxes are the responsibility
of the members. Other significant taxes for which the Company is liable are recorded on an accrual basis.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company applies ASC Topic 740, <i>Income
Taxes</i> (“ASC 740”). ASC 740 provides guidance for how uncertain tax positions should be recognized, measured, presented
and disclosed in the consolidated financial statements and requires the evaluation of tax positions taken or expected to be taken
in the course of preparing the Company’s consolidated financial statements to determine whether the tax positions are “more-likely-than-not”
to be sustained by the applicable tax authority. Tax positions with respect to income tax at the LLC level not deemed to meet the
“more-likely-than-not” threshold would be recorded as a tax benefit or expense in the appropriate period. Management
concluded that there are no uncertain tax positions that should be recognized in the consolidated financial statements. With few
exceptions, the Company is no longer subject to income tax examinations for years prior to 2009.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company’s policy is to record interest
and penalties related to taxes in interest expense on the consolidated statements of operations. There have been no significant
interest or penalties assessed or paid.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b>Recent Accounting Pronouncements</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In December 2011, the FASB issued ASU 2011-11,
<i>Disclosures about Offsetting Assets and Liabilities</i> which created new disclosure requirements about the nature of an entity’s
rights of offset and related arrangements associated with its financial instruments and derivative instruments. The disclosures
are limited to financial instruments and derivatives subject to enforceable master netting arrangements or similar agreements and
exclude loans and deposits at the same institution. The amendments affect all entities that have financial instruments and derivatives
that are either offset in the balance sheet or subject to an enforceable master netting arrangement or similar agreement regardless
of whether they are offset in the balance sheet. The ASU requires entities to disclose, separately for financial assets and liabilities,
including derivatives, the gross amounts of recognized financial assets and liabilities; the amounts offset under current U.S.
GAAP; the net amounts presented in the balance sheet; the amounts subject to an enforceable master netting arrangement or similar
agreement that were not included in the offset amount above, and the reconciling amount. The disclosure requirements are effective
for annual and interim reporting periods beginning on or after January 1, 2013, with retrospective application required. The Company
has reviewed this ASU and determined that it does not alter the disclosure requirements of the Company.</p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt; color: black"><b>Six Months</b></font><br />
<font style="font-size: 8pt; color: black"><b>Ended June 30,</b></font><br />
<font style="font-size: 8pt; color: black"><b>2013</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt; color: black"><b>Year Ended December 31, </b></font><br />
<font style="font-size: 8pt; color: black"><b>2012</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt; color: black"><b>Six Months</b></font><br />
<font style="font-size: 8pt; color: black"><b>Ended June 30,</b></font><br />
<font style="font-size: 8pt; color: black"><b>2012</b></font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="text-align: justify"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="width: 52%; padding-left: 5.4pt; text-align: justify"><font style="font-size: 8pt; color: black">Deferred financing costs, beginning balance</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt; color: black">$</font></td>
<td style="width: 13%; text-align: right"><font style="font-size: 8pt; color: black">598</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt; color: black">$</font></td>
<td style="width: 13%; text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt; color: black">$</font></td>
<td style="width: 13%; text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-bottom: 1pt; padding-left: 11pt; text-align: justify"><font style="font-size: 8pt; color: black">Additions</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt; color: black">42</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt; color: black">598</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt; color: black">412</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt; text-align: justify"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 5.4pt; text-align: justify"><font style="font-size: 8pt; color: black">Deferred financing costs, ending balance</font></td>
<td> </td>
<td><font style="font-size: 8pt; color: black">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">640</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 8pt; color: black">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">598</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 8pt; color: black">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">412</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt; text-align: justify"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-bottom: 1pt; padding-left: 11pt; text-align: justify"><font style="font-size: 8pt; color: black">Less accumulated amortization</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt; color: black">(11</font></td>
<td style="padding-bottom: 1pt"><font style="font-size: 8pt; color: black">)</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt; color: black">(2</font></td>
<td style="padding-bottom: 1pt"><font style="font-size: 8pt; color: black">)</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt; text-align: justify"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt; text-align: justify"><font style="font-size: 8pt; color: black">Deferred financing costs, net</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 8pt; color: black">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt; color: black">629</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 8pt; color: black">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt; color: black">596</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 8pt; color: black">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt; color: black">412</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
412000
42000
598000
640000
412000
598000
0
11000
0
2000
0
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b>3. Fair Value </b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">At June 30, 2013 and December 31, 2012, the
Company had no assets measured at fair value on a recurring or nonrecurring basis. The Company has determined that the carrying
value of financial instruments approximates fair value, as outlined below:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in"><b>Cash and Cash Equivalents</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">The carrying amount approximates
fair value because of the short maturity of these instruments.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in"><b>Loans Receivable and
Commitments to Extend Credit</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in"><b> </b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">For variable rate loans that reprice
frequently with no significant change in credit risk, estimated fair values are based on carrying values <font style="color: black">at
June 30, 2013 and December 31, 2012.</font> The estimated fair values for other loans are <font style="color: black">estimated
by discounting the future cash flows using current rates at which similar loans would be made to borrowers with similar credit
ratings and the same remaining maturities and approximate carrying values of these instruments at June 30, 2013 and December 31,
2012. For unfunded commitments to extend credit, because there would be no adjustment between fair value and carrying amount for
the amount if actually loaned, there is no adjustment to the amount before it is loaned. The amount for commitments to extend credit
is zero in the tables below because there is no difference between carrying value and fair value, and the amount is not recorded
on the consolidated balance sheets as a liability.</font></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in"><b>Customer Interest Escrow
</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">The customer interest escrow does
not yield interest to the customer, but because: 1) the customer loans are demand loans, 2) there is no way to estimate how long
the escrow will be in place, and 3) the interest rate which could be used to discount this amount is negligible, the fair value
approximates the carrying value at both June 30, 2013 and December 31, 2012.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in"><b>Borrowings under Credit
Facilities</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in"><b> </b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">The fair value of the Company’s
borrowings under credit facilities is estimated based on the expected cash flows discounted using the current rates offered to
the Company for debt of the same remaining maturities. As all of the borrowings under credit facilities or the Notes are either
payable on demand or at similar rates to what the Company can borrow funds for today, the fair value of the borrowings is determined
to approximate carrying value at June 30, 2013 and December 31, 2012.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">The table below is a summary of fair
value estimates for financial instruments and the level of the fair value hierarchy (as discussed in Note 2) within which the fair
value measurements are categorized at the periods indicated:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>June 30, 2013</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt; color: black"><b>Carrying Amount</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt; color: black"><b>Estimated Fair Value</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Quoted Prices in Active Markets for Identical Assets</b></font><br />
<font style="font-size: 8pt"><b>Level 1</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Significant Other Observable Inputs </b></font><br />
<font style="font-size: 8pt"><b>Level 2</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Significant Unobservable Inputs </b></font><br />
<font style="font-size: 8pt"><b>Level 3</b></font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 5.75pt; text-align: justify"><font style="font-size: 8pt; color: black">Financial Assets</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="width: 40%; padding-left: 11pt"><font style="font-size: 8pt; color: black">Cash and cash equivalents</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt; color: black">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt; color: black">24</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt; color: black">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt; color: black">24</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt; color: black">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt; color: black">24</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt; color: black">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt; color: black">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 11pt"><font style="font-size: 8pt; color: black">Loans</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">4,174</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">4,174</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">4,174</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.75pt"><font style="font-size: 8pt; color: black">Financial Liabilities</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 11pt"><font style="font-size: 8pt; color: black">Customer interest escrow</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">249</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">249</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">249</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 11pt"><font style="font-size: 8pt; color: black">Notes payable unsecured</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">2,213</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">2,213</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">2,213</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 11pt"><font style="font-size: 8pt; color: black">Notes payable related party</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">556</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">556</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">556</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.75pt"><font style="font-size: 8pt; color: black">Commitments to extend credit</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 31, 2012</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: center; text-indent: 0.5in"><b> </b></p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt; color: black"><b>Carrying Amount</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt; color: black"><b>Estimated Fair Value</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Quoted Prices in Active Markets for Identical Assets</b></font><br />
<font style="font-size: 8pt"><b>Level 1</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Significant Other Observable Inputs </b></font><br />
<font style="font-size: 8pt"><b>Level 2</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Significant Unobservable Inputs </b></font><br />
<font style="font-size: 8pt"><b>Level 3</b></font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 5.75pt"><font style="font-size: 8pt; color: black">Financial Assets</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="width: 40%; padding-left: 11pt"><font style="font-size: 8pt; color: black">Cash and cash equivalents</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt; color: black">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt; color: black">646</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt; color: black">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt; color: black">646</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt; color: black">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt; color: black">646</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt; color: black">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt; color: black">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 11pt"><font style="font-size: 8pt; color: black">Loans</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">3,604</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">3,604</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">3,604</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.75pt"><font style="font-size: 8pt; color: black">Financial Liabilities</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 11pt"><font style="font-size: 8pt; color: black">Customer interest escrow</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">329</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">329</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">329</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 11pt"><font style="font-size: 8pt; color: black">Notes payable unsecured</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">1,502</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">1,502</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">1,502</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 11pt"><font style="font-size: 8pt; color: black">Notes payable related party</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">1,108</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">1,108</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">1,108</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.75pt"><font style="font-size: 8pt; color: black">Commitments to extend credit</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>June 30, 2013</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt; color: black"><b>Carrying Amount</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt; color: black"><b>Estimated Fair Value</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Quoted Prices in Active Markets for Identical Assets</b></font><br />
<font style="font-size: 8pt"><b>Level 1</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Significant Other Observable Inputs </b></font><br />
<font style="font-size: 8pt"><b>Level 2</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Significant Unobservable Inputs </b></font><br />
<font style="font-size: 8pt"><b>Level 3</b></font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 5.75pt; text-align: justify"><font style="font-size: 8pt; color: black">Financial Assets</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="width: 40%; padding-left: 11pt"><font style="font-size: 8pt; color: black">Cash and cash equivalents</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt; color: black">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt; color: black">24</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt; color: black">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt; color: black">24</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt; color: black">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt; color: black">24</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt; color: black">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt; color: black">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 11pt"><font style="font-size: 8pt; color: black">Loans</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">4,174</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">4,174</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">4,174</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.75pt"><font style="font-size: 8pt; color: black">Financial Liabilities</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 11pt"><font style="font-size: 8pt; color: black">Customer interest escrow</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">249</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">249</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">249</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 11pt"><font style="font-size: 8pt; color: black">Notes payable unsecured</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">2,213</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">2,213</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">2,213</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 11pt"><font style="font-size: 8pt; color: black">Notes payable related party</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">556</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">556</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">556</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.75pt"><font style="font-size: 8pt; color: black">Commitments to extend credit</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 31, 2012</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: center; text-indent: 0.5in"><b> </b></p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt; color: black"><b>Carrying Amount</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt; color: black"><b>Estimated Fair Value</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Quoted Prices in Active Markets for Identical Assets</b></font><br />
<font style="font-size: 8pt"><b>Level 1</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Significant Other Observable Inputs </b></font><br />
<font style="font-size: 8pt"><b>Level 2</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Significant Unobservable Inputs </b></font><br />
<font style="font-size: 8pt"><b>Level 3</b></font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 5.75pt"><font style="font-size: 8pt; color: black">Financial Assets</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="width: 40%; padding-left: 11pt"><font style="font-size: 8pt; color: black">Cash and cash equivalents</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt; color: black">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt; color: black">646</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt; color: black">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt; color: black">646</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt; color: black">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt; color: black">646</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt; color: black">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt; color: black">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 11pt"><font style="font-size: 8pt; color: black">Loans</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">3,604</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">3,604</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">3,604</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.75pt"><font style="font-size: 8pt; color: black">Financial Liabilities</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 11pt"><font style="font-size: 8pt; color: black">Customer interest escrow</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">329</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">329</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">329</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 11pt"><font style="font-size: 8pt; color: black">Notes payable unsecured</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">1,502</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">1,502</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">1,502</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 11pt"><font style="font-size: 8pt; color: black">Notes payable related party</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">1,108</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">1,108</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">1,108</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.75pt"><font style="font-size: 8pt; color: black">Commitments to extend credit</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td> </td></tr>
</table>
0
0
0
0
0
0
0
0
0
0
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>4. Financing Receivables </b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Financing receivables are comprised of the following:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt; color: black"><b>June 30, </b></font><br />
<font style="font-size: 8pt; color: black"><b>2013</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt; color: black"><b>December 31,</b></font><br />
<font style="font-size: 8pt; color: black"><b>2012</b></font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 5.4pt; text-align: justify"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="width: 68%; padding-left: 5.4pt"><font style="font-size: 8pt; color: black">Commercial loans, net</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt; color: black">$</font></td>
<td style="width: 13%; text-align: right"><font style="font-size: 8pt; color: black">4,174</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt; color: black">$</font></td>
<td style="width: 13%; text-align: right"><font style="font-size: 8pt; color: black">3,604</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="font-size: 8pt; color: black">Less:  Allowance for loan losses</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt; text-align: justify"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt; text-align: justify"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 8pt; color: black">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt; color: black">4,174</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 8pt; color: black">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt; color: black">3,604</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">  </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Roll forward of commercial loans:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Six Months Ended </b></font><br />
<font style="font-size: 8pt"><b>June 30, </b></font><br />
<font style="font-size: 8pt"><b>2013</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Year </b></font><br />
<font style="font-size: 8pt"><b>Ended </b></font><br />
<font style="font-size: 8pt"><b>December 31, </b></font><br />
<font style="font-size: 8pt"><b>2012</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Six Months Ended </b></font><br />
<font style="font-size: 8pt"><b>June 30, </b></font><br />
<font style="font-size: 8pt"><b>2012</b></font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 5.4pt; text-align: justify"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="width: 52%; padding-left: 5.4pt"><font style="font-size: 8pt; color: black">Beginning balance</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt; color: black">$</font></td>
<td style="width: 13%; text-align: right"><font style="font-size: 8pt; color: black">3,604</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt; color: black">$</font></td>
<td style="width: 13%; text-align: right"><font style="font-size: 8pt; color: black">4,580</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt; color: black">$</font></td>
<td style="width: 13%; text-align: right"><font style="font-size: 8pt; color: black">4,580</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 11pt"><font style="font-size: 8pt; color: black">Additions</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">1,117</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">355</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">304</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 11pt"><font style="font-size: 8pt; color: black">Payoffs/Sales</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">(640</font></td>
<td><font style="font-size: 8pt; color: black">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">(1,547</font></td>
<td><font style="font-size: 8pt; color: black">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">(593</font></td>
<td><font style="font-size: 8pt; color: black">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-bottom: 1pt; padding-left: 11pt"><font style="font-size: 8pt; color: black">Earned loan fee</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt; color: black">93</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt; color: black">216</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt; color: black">114</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"><font style="font-size: 8pt; color: black">Ending balance</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 8pt; color: black">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt; color: black">4,174</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 8pt; color: black">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt; color: black">3,604</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 8pt; color: black">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt; color: black">4,405</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b>Commercial Loans </b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On December 30, 2011, pursuant to a credit agreement
by and between us, Benjamin Marcus Homes, LLC (“BMH”), Investor’s Mark Acquisitions, LLC (“IMA”)
and Mark L. Hoskins (“Hoskins”) (collectively, the “Hoskins Group”) (as amended, the “Credit Agreement”),
we originated two new loan assets, one to BMH as borrower (the “BMH Loan”) and one to IMA as borrower (the “New
IMA Loan”). Pursuant to the Credit Agreement and simultaneously with the origination of the BMH Loan and the New IMA Loan,
we also assumed the position of lender on an existing loan to IMA (the “Existing IMA Loan”) and assumed the position
of borrower on another existing loan in which IMA serves as the lender (the “SF Loan”). When we assumed the position
of the lender on the Existing IMA Loan, we purchased a loan which was originated by the borrower’s former lender, and assumed
that lender’s position in the loan and maintained the recorded collateral position in the loan. The borrower’s former
lender and the seller of the BMH property are the same party, 84 FINANCIAL, L.P., an affiliate of 84 Lumber Company. The BMH Loan,
the New IMA Loan and the Existing IMA Loan are all cross-defaulted and cross-collateralized with each other. Further, IMA and Hoskins
serve as guarantors of the BMH Loan, and BMH and Hoskins serve as guarantors of the New IMA Loan and the Existing IMA Loan. As
such, we are currently reliant on a single developer and homebuilder for our revenues and investment capital. In April of 2013
we modified the BMH Loan to allow the borrower to borrow for the construction of a home (on lot 206). The terms and conditions
of these loans are set forth in further detail below:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">A detail of the financing receivables at June
30, 2013:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="border-bottom: windowtext 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Item</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: windowtext 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Term</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: windowtext 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Interest Rate</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Funded to borrower</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: windowtext 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Estimated collateral values</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="width: 40%; padding-left: 5.4pt; text-align: right"> </td>
<td style="width: 1%"> </td>
<td style="width: 11%; padding-left: 5.4pt; text-align: right"> </td>
<td style="width: 1%"> </td>
<td style="width: 15%; padding-left: 5.4pt; text-align: right"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 11%; text-align: right"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 11%; text-align: right"> </td>
<td style="width: 5%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 5.4pt"><font style="font-size: 8pt"><i>BMH Loan</i></font></td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: justify"><font style="font-size: 8pt">Demand*</font></td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: center"><font style="font-size: 8pt">COF +2%  (7% Floor)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-right: 5.4pt; padding-left: 32pt; text-indent: -10pt"><font style="font-size: 8pt">2 Lots and land for phases 3, 4, and 5</font></td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: center"> </td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: right"> </td>
<td> </td>
<td><font style="font-size: 8pt">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt">687</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 8pt">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt">2,243</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 22pt"><font style="font-size: 8pt">Construction Lot 206</font></td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: center"> </td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: right"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">448</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">1,210</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 22pt"><font style="font-size: 8pt">Interest Escrow</font></td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: center"> </td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: right"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">450</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">249</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 22pt"><font style="font-size: 8pt">Loan Fee</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt; padding-left: 5.4pt; text-align: center"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt; padding-left: 5.4pt; text-align: right"> </td>
<td style="padding-bottom: 1pt"> </td>
<td> </td>
<td style="border-bottom: windowtext 1pt solid; text-align: right"><font style="font-size: 8pt">750</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td> </td>
<td style="border-bottom: windowtext 1pt solid; text-align: right"><font style="font-size: 8pt">–</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 5.4pt"> </td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: center"> </td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: right"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="font-size: 8pt"><b>Total BMH Loan</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt; padding-left: 5.4pt; text-align: center"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt; padding-left: 5.4pt; text-align: right"> </td>
<td style="padding-bottom: 1pt"> </td>
<td> </td>
<td style="border-bottom: windowtext 1pt solid; text-align: right"><font style="font-size: 8pt"><b>2,335</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td> </td>
<td style="border-bottom: windowtext 1pt solid; text-align: right"><font style="font-size: 8pt"><b>3,702</b></font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 5.4pt"><font style="font-size: 8pt"><i>IMA Loans</i></font></td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: center"> </td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: right"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 22pt"><font style="font-size: 8pt">New IMA Loan (loan fee)</font></td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: justify"><font style="font-size: 8pt">Demand*</font></td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">COF +2%  (7% Floor)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">250</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">–</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 22pt"><font style="font-size: 8pt">New IMA Loan (advances)</font></td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: justify"><font style="font-size: 8pt">Demand*</font></td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">COF +2%  (7% Floor)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">517</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">–</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 22pt"><font style="font-size: 8pt">Existing IMA Loan</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt; padding-left: 5.4pt; text-align: justify"><font style="font-size: 8pt">Demand**</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 8pt">7%</font></td>
<td style="padding-bottom: 1pt"> </td>
<td> </td>
<td style="border-bottom: windowtext 1pt solid; text-align: right"><font style="font-size: 8pt">1,687</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td> </td>
<td style="border-bottom: windowtext 1pt solid; text-align: right"><font style="font-size: 8pt">1,437</font></td>
<td style="padding-bottom: 1pt"><font style="font-size: 8pt"> ***</font></td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 5.4pt"> </td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: center"> </td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: center"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="font-size: 8pt"><b>Total IMA Loans</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt; padding-left: 5.4pt; text-align: right"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt; padding-left: 5.4pt; text-align: right"> </td>
<td style="padding-bottom: 1pt"> </td>
<td> </td>
<td style="border-bottom: windowtext 1pt solid; text-align: right"><font style="font-size: 8pt"><b>2,454</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td> </td>
<td style="border-bottom: windowtext 1pt solid; text-align: right"><font style="font-size: 8pt"><b>1,437</b></font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 5.4pt"> </td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: right"> </td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: right"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt"><font style="font-size: 8pt">Unearned loan fee </font></td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: right"> </td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: right"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">(615</font></td>
<td><font style="font-size: 8pt">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">-</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="font-size: 8pt">SF Loan</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt; padding-left: 5.4pt; text-align: right"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt; padding-left: 5.4pt; text-align: right"> </td>
<td style="padding-bottom: 1pt"> </td>
<td> </td>
<td style="border-bottom: windowtext 1pt solid; text-align: right"><font style="font-size: 8pt">-</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td> </td>
<td style="border-bottom: windowtext 1pt solid; text-align: right"><font style="font-size: 8pt">1,500</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt"> </td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: right"> </td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: right"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="font-size: 8pt"><b>Total</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt; padding-left: 5.4pt; text-align: right"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt; padding-left: 5.4pt; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; padding-bottom: 1pt"> </td>
<td style="border-bottom: windowtext 1pt solid"><font style="font-size: 8pt"><b>$</b></font></td>
<td style="border-bottom: windowtext 1pt solid; text-align: right"><font style="font-size: 8pt"><b>4,174</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: windowtext 1pt solid"><font style="font-size: 8pt"><b>$</b></font></td>
<td style="border-bottom: windowtext 1pt solid; text-align: right"><font style="font-size: 8pt"><b>6,639</b></font></td>
<td style="padding-bottom: 1pt"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">A detail of the financing receivables at December
31, 2012:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Item</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Term</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Interest Rate</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Funded to borrower</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Estimated collateral values</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt; text-align: center"> </td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: center"> </td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: center"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 5.4pt"><font style="font-size: 8pt"><i>BMH Loan</i></font></td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: justify"><font style="font-size: 8pt">Demand*</font></td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: center"><font style="font-size: 8pt">COF +2%  (7% Floor)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="width: 40%; padding-right: 5.4pt; padding-left: 32pt; text-indent: -10pt"><font style="font-size: 8pt">4 Lots and land for phases 3, </font><br />
<font style="font-size: 8pt">4, and 5</font></td>
<td style="width: 1%"> </td>
<td style="width: 11%; padding-left: 5.4pt; text-align: center"> </td>
<td style="width: 1%"> </td>
<td style="width: 15%; padding-left: 5.4pt; text-align: right"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 11%; text-align: right"><font style="font-size: 8pt">1,095</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 11%; text-align: right"><font style="font-size: 8pt">2,385</font></td>
<td style="width: 5%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-bottom: 1pt; padding-left: 22pt"><font style="font-size: 8pt">Interest Escrow</font></td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: center"> </td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: right"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">450</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">329</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 22pt"><font style="font-size: 8pt">Loan Fee</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt; padding-left: 5.4pt; text-align: center"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt; padding-left: 5.4pt; text-align: right"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">750</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">–</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 5.4pt"> </td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: center"> </td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: right"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="font-size: 8pt"><b>Total BMH Loan</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt; padding-left: 5.4pt; text-align: center"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt; padding-left: 5.4pt; text-align: right"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt"><b>2,295</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt"><b>2,714</b></font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 5.4pt"><font style="font-size: 8pt"><i>IMA Loans</i></font></td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: center"> </td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: right"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 22pt"><font style="font-size: 8pt">New IMA Loan (loan fee)</font></td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: justify"><font style="font-size: 8pt">Demand*</font></td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">COF +2%  (7% Floor)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">250</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">–</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-bottom: 1pt; padding-left: 22pt"><font style="font-size: 8pt">New IMA Loan (advances)</font></td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: justify"><font style="font-size: 8pt">Demand*</font></td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">COF +2%  (7% Floor)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">80</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">–</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 22pt"><font style="font-size: 8pt">Existing IMA Loan</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt; padding-left: 5.4pt; text-align: justify"><font style="font-size: 8pt">Demand**</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 8pt">7%</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">1,687</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">1,910</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 5.4pt"> </td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: center"> </td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: center"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="font-size: 8pt"><b>Total IMA Loans</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt; padding-left: 5.4pt; text-align: right"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt; padding-left: 5.4pt; text-align: right"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt"><b>2,017</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt"><b>1,910</b></font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 5.4pt"> </td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: right"> </td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: right"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt"><font style="font-size: 8pt">Unearned loan fee </font></td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: right"> </td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: right"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">(708</font></td>
<td><font style="font-size: 8pt">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">-</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="font-size: 8pt">SF Loan</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt; padding-left: 5.4pt; text-align: right"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt; padding-left: 5.4pt; text-align: right"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">-</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">1,500</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt"> </td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: right"> </td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: right"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="font-size: 8pt"><b>Total</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt; padding-left: 5.4pt; text-align: right"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt; padding-left: 5.4pt; text-align: right"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"><font style="font-size: 8pt"><b>$</b></font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt"><b>3,604</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"><font style="font-size: 8pt"><b>$</b></font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt"><b>6,124</b></font></td>
<td style="padding-bottom: 1pt"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">_______________</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">* These are the stated terms; however, in practice,
principal will be repaid upon the sale of each developed lot.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">** These are the stated terms; however, in practice,
principal will be repaid upon the sale of each developed lot after the BMH loan and the New IMA loan are satisfied.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">*** Value is equal to the appraised value of
$4,140, minus work remaining to finish the development of $1,423 and the second mortgage amount of $1,280.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The loans are collectively cross-collateralized
and, therefore, treated as one loan for the purpose of calculating the effective interest rate and for available remedies upon
an instance of default. As lots are released, a specific release price is repaid by the borrower, with 10% of that amount being
used to fund the Interest Escrow (except for the construction funding on lot 206). The customer will make cash interest payments
only when the Interest Escrow is fully depleted, except for lot 206 construction where the customer makes interest payments monthly.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Of the $1,023 loan fee from the origination
of our demand loans, $76 was used to offset legal expenses related to the creation of the loans. In accordance with ASC 310-20,
<i>Nonrefundable Fees and Other Costs</i>, the remaining $947 loan fee is being recognized over the expected life of the loans
using the straight-line method. Income of $116 and $114 was recognized during the six months ended June 30, 2013 and 2012, respectively.
The effective annual rate on the loans for the six months ended June 30, 2013 and 2012 was 12.53% and 11.22%, respectively.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has a credit agreement with the
customer which includes a maximum exposure on all three loans, which was $5,150 and $4,900 at June 30, 2013 and December 31, 2012,
respectively, and will reduce to $4,950 and $4,750 in October and December of 2013, respectively, unless modified by both parties.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Credit Quality Information</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><br />
The following table presents credit-related information at the “class” level in accordance with ASC 310-10-50, <i>Disclosures
about the Credit Quality of Finance Receivables and the Allowance for Credit Losses</i>. A class is generally a disaggregation
of a portfolio segment. In determining the classes, the Company considered the finance receivable characteristics and methods it
applies in monitoring and assessing credit risk and performance.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table summarizes finance receivables
by the risk ratings that regulatory agencies utilize to classify credit exposure and which are consistent with indicators the Company
monitors. Risk ratings are reviewed on a regular basis and are adjusted as necessary for updated information affecting the borrowers’
ability to fulfill their obligations.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0">The definitions of these ratings are as follows:</p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 30px"> </td>
<td style="width: 30px"><font style="font: 8pt Symbol">·</font></td>
<td style="text-align: justify"><font style="font-size: 8pt">Pass – finance receivables in this category do not meet the criteria for classification in one of the categories below.</font></td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 30px"> </td>
<td style="width: 30px"><font style="font: 8pt Symbol">·</font></td>
<td style="text-align: justify"><font style="font-size: 8pt">Special mention – a special mention asset exhibits potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may, at some future date, result in the deterioration of the repayment prospects.</font></td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 30px"> </td>
<td style="width: 30px"><font style="font: 8pt Symbol">·</font></td>
<td style="text-align: justify"><font style="font-size: 8pt">Classified – a classified asset ranges from: 1) assets that are inadequately protected by the current sound worth and paying capacity of the borrower, and are characterized by the distinct possibility that some loss will be sustained if the deficiencies are not corrected to 2) assets with weaknesses that make collection or liquidation in full unlikely on the basis of current facts, conditions, and values. Assets in this classification can be accruing or on non-accrual depending on the evaluation of these factors.</font></td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Finance Receivables – By Classification:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt; color: black"><b>June 30, </b></font><br />
<font style="font-size: 8pt; color: black"><b>2013</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt; color: black"><b>December 31,</b></font><br />
<font style="font-size: 8pt; color: black"><b>2012</b></font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="width: 68%; padding-left: 5.4pt"><font style="font-size: 8pt; color: black">Pass</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt; color: black">$</font></td>
<td style="width: 13%; text-align: right"><font style="font-size: 8pt; color: black">4,174</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt; color: black">$</font></td>
<td style="width: 13%; text-align: right"><font style="font-size: 8pt; color: black">3,604</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 5.4pt"><font style="font-size: 8pt; color: black">Special mention</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt"><font style="font-size: 8pt; color: black">Classified – accruing</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="font-size: 8pt; color: black">Classified – nonaccrual</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-bottom: 2.5pt; padding-left: 22pt"><font style="font-size: 8pt; color: black">Total</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 8pt; color: black">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt; color: black">4,174</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 8pt; color: black">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt; color: black">3,604</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">At June 30, 2013 and December 31, 2012, there
were no loans acquired with deteriorated credit quality, past due loans, impaired loans, or loans on nonaccrual status.</p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Six Months Ended </b></font><br />
<font style="font-size: 8pt"><b>June 30, </b></font><br />
<font style="font-size: 8pt"><b>2013</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Year </b></font><br />
<font style="font-size: 8pt"><b>Ended </b></font><br />
<font style="font-size: 8pt"><b>December 31, </b></font><br />
<font style="font-size: 8pt"><b>2012</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Six Months Ended </b></font><br />
<font style="font-size: 8pt"><b>June 30, </b></font><br />
<font style="font-size: 8pt"><b>2012</b></font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 5.4pt; text-align: justify"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="width: 52%; padding-left: 5.4pt"><font style="font-size: 8pt; color: black">Beginning balance</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt; color: black">$</font></td>
<td style="width: 13%; text-align: right"><font style="font-size: 8pt; color: black">3,604</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt; color: black">$</font></td>
<td style="width: 13%; text-align: right"><font style="font-size: 8pt; color: black">4,580</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt; color: black">$</font></td>
<td style="width: 13%; text-align: right"><font style="font-size: 8pt; color: black">4,580</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 11pt"><font style="font-size: 8pt; color: black">Additions</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">1,117</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">355</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">304</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 11pt"><font style="font-size: 8pt; color: black">Payoffs/Sales</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">(640</font></td>
<td><font style="font-size: 8pt; color: black">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">(1,547</font></td>
<td><font style="font-size: 8pt; color: black">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">(593</font></td>
<td><font style="font-size: 8pt; color: black">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-bottom: 1pt; padding-left: 11pt"><font style="font-size: 8pt; color: black">Earned loan fee</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt; color: black">93</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt; color: black">216</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt; color: black">114</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"><font style="font-size: 8pt; color: black">Ending balance</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 8pt; color: black">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt; color: black">4,174</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 8pt; color: black">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt; color: black">3,604</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 8pt; color: black">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt; color: black">4,405</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Financing receivables are comprised of the following:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt; color: black"><b>June 30, </b></font><br />
<font style="font-size: 8pt; color: black"><b>2013</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt; color: black"><b>December 31,</b></font><br />
<font style="font-size: 8pt; color: black"><b>2012</b></font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 5.4pt; text-align: justify"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="width: 68%; padding-left: 5.4pt"><font style="font-size: 8pt; color: black">Commercial loans, net</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt; color: black">$</font></td>
<td style="width: 13%; text-align: right"><font style="font-size: 8pt; color: black">4,174</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt; color: black">$</font></td>
<td style="width: 13%; text-align: right"><font style="font-size: 8pt; color: black">3,604</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="font-size: 8pt; color: black">Less:  Allowance for loan losses</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt; text-align: justify"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt; text-align: justify"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 8pt; color: black">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt; color: black">4,174</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 8pt; color: black">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt; color: black">3,604</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="margin-top: 0; margin-bottom: 0"> </p>
<p style="margin-top: 0; margin-bottom: 0"></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Finance Receivables – By Classification:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt; color: black"><b>June 30, </b></font><br />
<font style="font-size: 8pt; color: black"><b>2013</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt; color: black"><b>December 31,</b></font><br />
<font style="font-size: 8pt; color: black"><b>2012</b></font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="width: 68%; padding-left: 5.4pt"><font style="font-size: 8pt; color: black">Pass</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt; color: black">$</font></td>
<td style="width: 13%; text-align: right"><font style="font-size: 8pt; color: black">4,174</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt; color: black">$</font></td>
<td style="width: 13%; text-align: right"><font style="font-size: 8pt; color: black">3,604</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 5.4pt"><font style="font-size: 8pt; color: black">Special mention</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt"><font style="font-size: 8pt; color: black">Classified – accruing</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="font-size: 8pt; color: black">Classified – nonaccrual</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-bottom: 2.5pt; padding-left: 22pt"><font style="font-size: 8pt; color: black">Total</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 8pt; color: black">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt; color: black">4,174</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 8pt; color: black">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt; color: black">3,604</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="margin-top: 0; margin-bottom: 0"></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">A detail of the financing receivables at June
30, 2013:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="border-bottom: windowtext 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Item</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: windowtext 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Term</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: windowtext 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Interest Rate</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Funded to borrower</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: windowtext 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Estimated collateral values</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="width: 40%; padding-left: 5.4pt; text-align: right"> </td>
<td style="width: 1%"> </td>
<td style="width: 11%; padding-left: 5.4pt; text-align: right"> </td>
<td style="width: 1%"> </td>
<td style="width: 15%; padding-left: 5.4pt; text-align: right"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 11%; text-align: right"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 11%; text-align: right"> </td>
<td style="width: 5%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 5.4pt"><font style="font-size: 8pt"><i>BMH Loan</i></font></td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: justify"><font style="font-size: 8pt">Demand*</font></td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: center"><font style="font-size: 8pt">COF +2%  (7% Floor)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-right: 5.4pt; padding-left: 32pt; text-indent: -10pt"><font style="font-size: 8pt">2 Lots and land for phases 3, 4, and 5</font></td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: center"> </td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: right"> </td>
<td> </td>
<td><font style="font-size: 8pt">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt">687</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 8pt">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt">2,243</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 22pt"><font style="font-size: 8pt">Construction Lot 206</font></td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: center"> </td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: right"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">448</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">1,210</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 22pt"><font style="font-size: 8pt">Interest Escrow</font></td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: center"> </td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: right"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">450</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">249</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 22pt"><font style="font-size: 8pt">Loan Fee</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt; padding-left: 5.4pt; text-align: center"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt; padding-left: 5.4pt; text-align: right"> </td>
<td style="padding-bottom: 1pt"> </td>
<td> </td>
<td style="border-bottom: windowtext 1pt solid; text-align: right"><font style="font-size: 8pt">750</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td> </td>
<td style="border-bottom: windowtext 1pt solid; text-align: right"><font style="font-size: 8pt">–</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 5.4pt"> </td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: center"> </td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: right"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="font-size: 8pt"><b>Total BMH Loan</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt; padding-left: 5.4pt; text-align: center"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt; padding-left: 5.4pt; text-align: right"> </td>
<td style="padding-bottom: 1pt"> </td>
<td> </td>
<td style="border-bottom: windowtext 1pt solid; text-align: right"><font style="font-size: 8pt"><b>2,335</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td> </td>
<td style="border-bottom: windowtext 1pt solid; text-align: right"><font style="font-size: 8pt"><b>3,702</b></font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 5.4pt"><font style="font-size: 8pt"><i>IMA Loans</i></font></td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: center"> </td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: right"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 22pt"><font style="font-size: 8pt">New IMA Loan (loan fee)</font></td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: justify"><font style="font-size: 8pt">Demand*</font></td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">COF +2%  (7% Floor)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">250</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">–</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 22pt"><font style="font-size: 8pt">New IMA Loan (advances)</font></td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: justify"><font style="font-size: 8pt">Demand*</font></td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">COF +2%  (7% Floor)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">517</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">–</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 22pt"><font style="font-size: 8pt">Existing IMA Loan</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt; padding-left: 5.4pt; text-align: justify"><font style="font-size: 8pt">Demand**</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 8pt">7%</font></td>
<td style="padding-bottom: 1pt"> </td>
<td> </td>
<td style="border-bottom: windowtext 1pt solid; text-align: right"><font style="font-size: 8pt">1,687</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td> </td>
<td style="border-bottom: windowtext 1pt solid; text-align: right"><font style="font-size: 8pt">1,437</font></td>
<td style="padding-bottom: 1pt"><font style="font-size: 8pt"> ***</font></td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 5.4pt"> </td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: center"> </td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: center"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="font-size: 8pt"><b>Total IMA Loans</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt; padding-left: 5.4pt; text-align: right"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt; padding-left: 5.4pt; text-align: right"> </td>
<td style="padding-bottom: 1pt"> </td>
<td> </td>
<td style="border-bottom: windowtext 1pt solid; text-align: right"><font style="font-size: 8pt"><b>2,454</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td> </td>
<td style="border-bottom: windowtext 1pt solid; text-align: right"><font style="font-size: 8pt"><b>1,437</b></font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 5.4pt"> </td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: right"> </td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: right"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt"><font style="font-size: 8pt">Unearned loan fee </font></td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: right"> </td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: right"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">(615</font></td>
<td><font style="font-size: 8pt">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">-</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="font-size: 8pt">SF Loan</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt; padding-left: 5.4pt; text-align: right"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt; padding-left: 5.4pt; text-align: right"> </td>
<td style="padding-bottom: 1pt"> </td>
<td> </td>
<td style="border-bottom: windowtext 1pt solid; text-align: right"><font style="font-size: 8pt">-</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td> </td>
<td style="border-bottom: windowtext 1pt solid; text-align: right"><font style="font-size: 8pt">1,500</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt"> </td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: right"> </td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: right"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="font-size: 8pt"><b>Total</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt; padding-left: 5.4pt; text-align: right"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt; padding-left: 5.4pt; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; padding-bottom: 1pt"> </td>
<td style="border-bottom: windowtext 1pt solid"><font style="font-size: 8pt"><b>$</b></font></td>
<td style="border-bottom: windowtext 1pt solid; text-align: right"><font style="font-size: 8pt"><b>4,174</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: windowtext 1pt solid"><font style="font-size: 8pt"><b>$</b></font></td>
<td style="border-bottom: windowtext 1pt solid; text-align: right"><font style="font-size: 8pt"><b>6,639</b></font></td>
<td style="padding-bottom: 1pt"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">A detail of the financing receivables at December
31, 2012:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Item</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Term</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Interest Rate</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Funded to borrower</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Estimated collateral values</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt; text-align: center"> </td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: center"> </td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: center"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 5.4pt"><font style="font-size: 8pt"><i>BMH Loan</i></font></td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: justify"><font style="font-size: 8pt">Demand*</font></td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: center"><font style="font-size: 8pt">COF +2%  (7% Floor)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="width: 40%; padding-right: 5.4pt; padding-left: 32pt; text-indent: -10pt"><font style="font-size: 8pt">4 Lots and land for phases 3, </font><br />
<font style="font-size: 8pt">4, and 5</font></td>
<td style="width: 1%"> </td>
<td style="width: 11%; padding-left: 5.4pt; text-align: center"> </td>
<td style="width: 1%"> </td>
<td style="width: 15%; padding-left: 5.4pt; text-align: right"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 11%; text-align: right"><font style="font-size: 8pt">1,095</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt">$</font></td>
<td style="width: 11%; text-align: right"><font style="font-size: 8pt">2,385</font></td>
<td style="width: 5%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-bottom: 1pt; padding-left: 22pt"><font style="font-size: 8pt">Interest Escrow</font></td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: center"> </td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: right"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">450</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">329</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 22pt"><font style="font-size: 8pt">Loan Fee</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt; padding-left: 5.4pt; text-align: center"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt; padding-left: 5.4pt; text-align: right"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">750</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">–</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 5.4pt"> </td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: center"> </td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: right"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="font-size: 8pt"><b>Total BMH Loan</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt; padding-left: 5.4pt; text-align: center"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt; padding-left: 5.4pt; text-align: right"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt"><b>2,295</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt"><b>2,714</b></font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 5.4pt"><font style="font-size: 8pt"><i>IMA Loans</i></font></td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: center"> </td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: right"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 22pt"><font style="font-size: 8pt">New IMA Loan (loan fee)</font></td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: justify"><font style="font-size: 8pt">Demand*</font></td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">COF +2%  (7% Floor)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">250</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">–</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-bottom: 1pt; padding-left: 22pt"><font style="font-size: 8pt">New IMA Loan (advances)</font></td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: justify"><font style="font-size: 8pt">Demand*</font></td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt">COF +2%  (7% Floor)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">80</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">–</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 22pt"><font style="font-size: 8pt">Existing IMA Loan</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt; padding-left: 5.4pt; text-align: justify"><font style="font-size: 8pt">Demand**</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 8pt">7%</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">1,687</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">1,910</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 5.4pt"> </td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: center"> </td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: center"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="font-size: 8pt"><b>Total IMA Loans</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt; padding-left: 5.4pt; text-align: right"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt; padding-left: 5.4pt; text-align: right"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt"><b>2,017</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt"><b>1,910</b></font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 5.4pt"> </td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: right"> </td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: right"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt"><font style="font-size: 8pt">Unearned loan fee </font></td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: right"> </td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: right"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">(708</font></td>
<td><font style="font-size: 8pt">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt">-</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="font-size: 8pt">SF Loan</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt; padding-left: 5.4pt; text-align: right"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt; padding-left: 5.4pt; text-align: right"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">-</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">1,500</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt"> </td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: right"> </td>
<td> </td>
<td style="padding-left: 5.4pt; text-align: right"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="font-size: 8pt"><b>Total</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt; padding-left: 5.4pt; text-align: right"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt; padding-left: 5.4pt; text-align: right"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"><font style="font-size: 8pt"><b>$</b></font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt"><b>3,604</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"><font style="font-size: 8pt"><b>$</b></font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt"><b>6,124</b></font></td>
<td style="padding-bottom: 1pt"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b>5. Borrowings </b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i><u>Affiliate Loans</u></i></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In December of 2011, the Company entered into
two secured revolving lines of credit with affiliates, both of whom are members. These loans have an interest rate of the affiliates’
cost of funds, which was 3.83% and 3.93% as of June 30, 2013 and December 31, 2012, respectively. They are demand notes. The maximum
that can be borrowed under these notes is $1,500, at the discretion of the lenders. The actual amount borrowed was $556 and $1,108
as of June 30, 2013 and December 31, 2012, respectively, leaving $944 and $392, respectively, in available credit on those dates.
There is no obligation of the affiliates to lend money up to the note amount. The security for the lines of credit includes all
of the assets of the Company. The weighted average balance of affiliate borrowings outstanding was $619 and $1,009 for the six
months ended June 30, 2013 and 2012, respectively, and the interest expense was $12 and $19 for the same periods, respectively.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><i><u>Notes Program</u></i></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Borrowings through our public offering were
$713 and $2 at June 30, 2013 and December 31, 2012, respectively. The effective interest rate on the borrowings at June 30, 2013
and December 31, 2012 was 6.32% and 4.95%, respectively, not including the amortization of deferred financing costs. There are
limited rights of early redemption. The following table shows the origination of our Notes program:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt; color: black"><b>Six Months</b></font><br />
<font style="font-size: 8pt; color: black"><b>Ended </b></font><br />
<font style="font-size: 8pt; color: black"><b>June 30,</b></font><br />
<font style="font-size: 8pt; color: black"><b>2013</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Year </b></font><br />
<font style="font-size: 8pt"><b>Ended </b></font><br />
<font style="font-size: 8pt"><b>December 31,</b></font><br />
<font style="font-size: 8pt"><b>2012</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt; color: black"><b>Six Months</b></font><br />
<font style="font-size: 8pt; color: black"><b>Ended</b></font><br />
<font style="font-size: 8pt; color: black"><b>June 30,</b></font><br />
<font style="font-size: 8pt; color: black"><b>2012</b></font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="text-align: justify"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="width: 52%; padding-left: 5.4pt"><font style="font-size: 8pt; color: black">Notes outstanding, beginning of period</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt; color: black">$</font></td>
<td style="width: 13%; text-align: right"><font style="font-size: 8pt; color: black">2</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt; color: black">$</font></td>
<td style="width: 13%; text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt; color: black">$</font></td>
<td style="width: 13%; text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 11pt"><font style="font-size: 8pt; color: black">Notes issued</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">711</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">2</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 11pt"><font style="font-size: 8pt; color: black">Note repayments / redemptions</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 5.4pt"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"><font style="font-size: 8pt; color: black">Notes outstanding, end of period</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 8pt; color: black">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt; color: black">713</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 8pt; color: black">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt; color: black">2</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 8pt; color: black">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0">The following table shows the maturity of outstanding Notes as of
June 30, 2013.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1pt solid"><font style="font-size: 8pt; color: black"><b>Year Maturing</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt; color: black"><b>Amount Maturing</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 9pt; text-align: justify"><font style="font-size: 8pt; color: black">2013</font></td>
<td> </td>
<td><font style="font-size: 8pt; color: black">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="width: 70%; padding-left: 9pt; text-align: justify"><font style="font-size: 8pt; color: black">2014</font></td>
<td style="width: 13%"> </td>
<td style="width: 1%"> </td>
<td style="width: 15%; text-align: right"><font style="font-size: 8pt; color: black">415</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 9pt; text-align: justify"><font style="font-size: 8pt; color: black">2015</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 9pt; text-align: justify"><font style="font-size: 8pt; color: black">2016</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-bottom: 1pt; padding-left: 9pt; text-align: justify"><font style="font-size: 8pt; color: black">2017</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt; color: black">298</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 9pt"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-bottom: 2.5pt; padding-left: 9pt"><font style="font-size: 8pt; color: black"><b>Total</b></font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 8pt; color: black">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt; color: black">713</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The SF Loan, which is unsecured and due to our
largest borrower, is a demand note with a maximum outstanding balance of $1,500. The balance has been $1,500 for all of 2012 and
2013, and the interest rate is fixed at 5%.</p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt; color: black"><b>Six Months</b></font><br />
<font style="font-size: 8pt; color: black"><b>Ended </b></font><br />
<font style="font-size: 8pt; color: black"><b>June 30,</b></font><br />
<font style="font-size: 8pt; color: black"><b>2013</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Year </b></font><br />
<font style="font-size: 8pt"><b>Ended </b></font><br />
<font style="font-size: 8pt"><b>December 31,</b></font><br />
<font style="font-size: 8pt"><b>2012</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt; color: black"><b>Six Months</b></font><br />
<font style="font-size: 8pt; color: black"><b>Ended</b></font><br />
<font style="font-size: 8pt; color: black"><b>June 30,</b></font><br />
<font style="font-size: 8pt; color: black"><b>2012</b></font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="text-align: justify"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="width: 52%; padding-left: 5.4pt"><font style="font-size: 8pt; color: black">Notes outstanding, beginning of period</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt; color: black">$</font></td>
<td style="width: 13%; text-align: right"><font style="font-size: 8pt; color: black">2</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt; color: black">$</font></td>
<td style="width: 13%; text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt; color: black">$</font></td>
<td style="width: 13%; text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 11pt"><font style="font-size: 8pt; color: black">Notes issued</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">711</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">2</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 11pt"><font style="font-size: 8pt; color: black">Note repayments / redemptions</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 5.4pt"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"><font style="font-size: 8pt; color: black">Notes outstanding, end of period</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 8pt; color: black">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt; color: black">713</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 8pt; color: black">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt; color: black">2</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 8pt; color: black">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1pt solid"><font style="font-size: 8pt; color: black"><b>Year Maturing</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt; color: black"><b>Amount Maturing</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 9pt; text-align: justify"><font style="font-size: 8pt; color: black">2013</font></td>
<td> </td>
<td><font style="font-size: 8pt; color: black">$</font></td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="width: 70%; padding-left: 9pt; text-align: justify"><font style="font-size: 8pt; color: black">2014</font></td>
<td style="width: 13%"> </td>
<td style="width: 1%"> </td>
<td style="width: 15%; text-align: right"><font style="font-size: 8pt; color: black">415</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 9pt; text-align: justify"><font style="font-size: 8pt; color: black">2015</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 9pt; text-align: justify"><font style="font-size: 8pt; color: black">2016</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-bottom: 1pt; padding-left: 9pt; text-align: justify"><font style="font-size: 8pt; color: black">2017</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt; color: black">298</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 9pt"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-bottom: 2.5pt; padding-left: 9pt"><font style="font-size: 8pt; color: black"><b>Total</b></font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 8pt; color: black">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt; color: black">713</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
0
415000
0
0
298000
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b>6. Members’ Capital </b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The capital structure of the Company was changed
with the adoption of the new operating agreement as of March 29, 2012. Under the current capital structure, there is currently
one class of units (class A common units) with two members. All members have voting rights in proportion to their capital account.
There were 2,629 class A common units outstanding at June 30, 2013. There are two additional authorized unit classes: class A preferred
units and class B profit units. Once class B profit units are issued, the existing class A common units will become class A preferred
units. Class A preferred units will receive preferred treatment in terms of distributions and liquidation proceeds.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0">The members’ capital balances by class are as follows:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt; color: black"><b>Class</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt; color: black"><b>June 30, </b></font><br />
<font style="font-size: 8pt; color: black"><b>2013</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt; color: black"><b>December 31,</b></font><br />
<font style="font-size: 8pt; color: black"><b>2012</b></font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="width: 68%; padding-bottom: 1pt; padding-left: 5.75pt"><font style="font-size: 8pt; color: black">A Common Units</font></td>
<td style="width: 1%; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: black 1pt solid"><font style="font-size: 8pt; color: black">$</font></td>
<td style="width: 13%; border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt; color: black">1,839</font></td>
<td style="width: 1%; padding-bottom: 1pt"> </td>
<td style="width: 1%; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: black 1pt solid"><font style="font-size: 8pt; color: black">$</font></td>
<td style="width: 13%; border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt; color: black">1,902</font></td>
<td style="width: 1%; padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.75pt"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-bottom: 2.5pt; padding-left: 5.75pt"><font style="font-size: 8pt; color: black">Members’ Capital</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 8pt; color: black">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt; color: black">1,839</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 8pt; color: black">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt; color: black">1,902</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt; color: black"><b>Class</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt; color: black"><b>June 30, </b></font><br />
<font style="font-size: 8pt; color: black"><b>2013</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt; color: black"><b>December 31,</b></font><br />
<font style="font-size: 8pt; color: black"><b>2012</b></font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="width: 68%; padding-bottom: 1pt; padding-left: 5.75pt"><font style="font-size: 8pt; color: black">A Common Units</font></td>
<td style="width: 1%; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: black 1pt solid"><font style="font-size: 8pt; color: black">$</font></td>
<td style="width: 13%; border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt; color: black">1,839</font></td>
<td style="width: 1%; padding-bottom: 1pt"> </td>
<td style="width: 1%; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: black 1pt solid"><font style="font-size: 8pt; color: black">$</font></td>
<td style="width: 13%; border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt; color: black">1,902</font></td>
<td style="width: 1%; padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.75pt"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-bottom: 2.5pt; padding-left: 5.75pt"><font style="font-size: 8pt; color: black">Members’ Capital</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 8pt; color: black">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt; color: black">1,839</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 8pt; color: black">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt; color: black">1,902</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
66000
-41000
2769000
2610000
944000
392000
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b>7. Related Party Transactions</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The accompanying interim condensed consolidated
financial statements have been prepared from the separate accounts maintained by the Company and may not be indicative of the conditions
that would have existed or the results of operations that would have occurred had the Company not entered into certain related
party transactions or not participated in certain transactions with its members.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Notes and Accounts Payable to Affiliates</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In December of 2011, the Company entered into
a loan agreement with two of our affiliates, as more fully described in Note 5 – <i>Affiliate Loans</i>.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In December of 2011, the Company entered into
a loan agreement with the Hoskins Group, as more fully described in Note 5 – <i>SF Loan </i>of our year end 2012 consolidated
financial statements.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company accepted new investments under the
Notes program in 2013 from relatives of the members totaling $147, all of which is outstanding at June 30, 2013.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>8. Commitments and Contingencies</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In the normal course of business there may be
outstanding commitments to extend credit that are not included in the consolidated financial statements. Commitments to extend
credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments
generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments
are expected to expire without being drawn upon and some of the funding may come from the earlier repayment of the same loan (in
the case of revolving lines), the total commitment amounts do not necessarily represent future cash requirements. The financial
instruments involve, to varying degrees, elements of credit and interest rate risk in excess of amounts recognized in the consolidated
financial statements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. Unfunded commitments
to extend credit, which have similar collateral, credit risk and market risk to our outstanding loans, were approximately $508
and $588 at June 30, 2013 and December 31, 2012, respectively.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The property securing the New IMA Loan and the
Existing IMA Loan, as described in Note 4 of our year end 2012 consolidated financial statements, is subject to a mortgage in the
amount of $1,290, which is held by an unrelated third party. In connection with the closing of the New IMA Loan and the Existing
IMA Loan, the holder of this mortgage entered into an agreement to amend, restate and further subordinate such mortgage. This subordination
agreement also provides that, in the event of a foreclosure on and liquidation of the property securing the New IMA Loan and the
Existing IMA Loan, we are entitled to receive liquidation proceeds up to $2,225, which excludes the collateral securing the BMH
Loan, at which point the holder of this mortgage is entitled to receive liquidation proceeds up to the amount necessary to satisfy
its outstanding mortgage, and we are then entitled to any remainder of the liquidation proceeds. The subordinated mortgage balance
is subtracted from the appraised value of the finished lots when we list the value of the lots.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>9. Subsequent Events</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Management of the Company has evaluated subsequent
events through August 8, 2013, the date these interim condensed consolidated financial statements were issued.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On July 24, 2013, the Company entered into a
third modification of the credit agreement with the Hoskins Group, which added a construction loan for up to $300 on lot 204 in
the Hamlets subdivision. The third modification of the credit agreement also included a temporary increase in credit limit of $300
to allow for the additional borrowings. Additionally, the Company received a full payoff of the money lent in the second modification
of the credit agreement on lot 206 totaling $450.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On July 12, 3013, the Company signed a commitment
letter with a builder in New Jersey for a revolving line of credit of up to $150 for the construction of new homes. This line of
credit is expected to be finalized in August of 2013.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="color: black">Under the Notes
offering, the Company issued an additional $7 subsequent to June 30, 2013. The total debt issued and outstanding pursuant to the
Notes offering as of August 8, 2013 is $720</font>.</p>
0
9000
2000
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<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt; color: black"><b>Six Months</b></font><br />
<font style="font-size: 8pt; color: black"><b>Ended June 30,</b></font><br />
<font style="font-size: 8pt; color: black"><b>2013</b></font></td>
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<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt; color: black"><b>Year Ended December 31, </b></font><br />
<font style="font-size: 8pt; color: black"><b>2012</b></font></td>
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<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt; color: black"><b>Six Months</b></font><br />
<font style="font-size: 8pt; color: black"><b>Ended June 30,</b></font><br />
<font style="font-size: 8pt; color: black"><b>2012</b></font></td>
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<td style="width: 52%; padding-left: 5.4pt; text-align: justify"><font style="font-size: 8pt; color: black">Accumulated amortization, beginning balance</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt; color: black">$</font></td>
<td style="width: 13%; text-align: right"><font style="font-size: 8pt; color: black">2</font></td>
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<td style="width: 1%"><font style="font-size: 8pt; color: black">$</font></td>
<td style="width: 13%; text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 8pt; color: black">$</font></td>
<td style="width: 13%; text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
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<td style="padding-bottom: 1pt; padding-left: 11pt; text-align: justify"><font style="font-size: 8pt; color: black">Additions</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt; color: black">9</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
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<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt; color: black">2</font></td>
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<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt; color: black">–</font></td>
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<td style="padding-bottom: 2.5pt; padding-left: 5.4pt; text-align: justify"><font style="font-size: 8pt; color: black">Accumulated amortization, ending balance</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 8pt; color: black">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt; color: black">11</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 8pt; color: black">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 8pt; color: black">2</font></td>
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<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 8pt; color: black">$</font></td>
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629000
412000
596000
0