Sachem Capital Corp. (NYSE MKT:SACH) Q1 2020 Earnings Conference Call - Final Transcript

hear you guys are doing okay, and keep up the good work. Thank you or answering my questions.

Okay.

Our next question comes from Richard Belz [Indecipherable]

Hello, John.

Good morning, Richard. How are you?

Very good. Very good. Can you put a little bit more color on the impairment and the need for that impairment? And then I have one other question following up on your reserve that you had said on the -- 10-K call that you were looking to keep $20 million extra cash around. Have you decided to lower that at all? So those two questions I have. Thanks.

I'll take the question on the -- our cash balances. Right now, it's probably somewhere between $18 million and $19 million. Yes, Richard, I am getting itchy to put money to work. And I'm sitting on my hands now. I'm waiting for just a couple of factors to line up. And our borrowers will tell us the state of affairs here. I'm less reluctant to listen to our government officials. Our borrowers by their prompt payments are going to dictate the strength of the market that we deal in and the loosening up of credit at our bond dealers. And I'm sure they're looking to earn some dollars. And my guess is when they have reasonable capital for us, I kind of get the green light to move forward. And even though I have $19 million, I do have between $8 million and $9 million of construction advances that are due when projects get to a certain level. So we really have $10 million of free cash flow. And of that, quite possibly, there could be a dividend in two months.

So what seems like a lot of money can be spent very quickly. Last week, I did $800,000 in construction draws. So the money comes and goes. I would -- if I know that liquidity is coming to us, then boy we have a queue lined up here that we could really go to work. With respect to the impairment, if you've heard my previous answer, we have a project. It's 30 building lots. I think we've sold a couple of houses. So we're probably down to 28 building lots -- I'm sorry 27 building lots. And what we're doing is we've put the project on hold. And the impairment that we've taken is -- it relates to cost really to, as they say, cap the project. We're going to plant some grass. We're going to -- the prior the borrower kind of beat up the property a bit. We're going to put it back in order. And so we took that impairment charge, which will happen this quarter.

Okay. Thank you.

And that is all the questions that we have at this time.

Thank you, all.

[Operator Closing Remarks]