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Fair Value Measurements (Tables) | 9 Months Ended
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Sep. 30, 2021
Fair Value Disclosures [Abstract] |
Fair value measurements of marketable securities, by major class | The following tables present fair value measurements of marketable securities, by major class, as of September 30, 2021 and December 31, 2020, according to the fair value hierarchy:
|  | September 30, 2021
|  | Fair Value Measurements
|  | Level 1 |  | Level 2 |  | Level 3 |  | Total
Marketable Securities: |  |  |  |  |  |  |  |
Equity securities |  | $ | 4,437,855 |  |  | $ | — |  |  | $ | — |  |  | $ | 4,437,855 |
Total |  | $ | 4,437,855 |  |  | $ | — |  |  | $ | — |  |  | $ | 4,437,855 |
|  | December 31, 2020
|  | Fair Value Measurements
|  | Level 1 |  | Level 2 |  | Level 3 |  | Total
Marketable Securities: |  |  |  |  |  |  |  |
Equity securities |  | $ | 1,287,500 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,287,500 |
Total |  | $ | 1,287,500 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,287,500 |
Activities of the marketable securities | The following table presents the activities of the marketable securities for the periods presented.
|  | Nine Months Ended September 30,
|  | 2021 |  | 2020
Beginning balance |  | $ | 1,287,500 |  |  | $ | — |
Purchases |  | 6,479,147 |  |  | 6,039,567 |
Proceeds from sale |  | (3,328,157) |  |  | (6,023,723) |
Reclassification of net realized gains on marketable securities into earnings |  | 22,428 |  |  | 1,160,162 |
Unrealized (losses) gains on marketable securities |  | (23,063) |  |  | 28,995 |
Ending balance |  | $ | 4,437,855 |  |  | $ | 1,205,001 |
Fair Value Measurements, Nonrecurring | The following table presents the carrying value, which represents the principal amount outstanding, adjusted for the accretion of purchase discounts on loans and exit fees, and the amortization of purchase premiums on loans and origination fees, and estimated fair value of the Company’s financial instruments that are not carried at fair value on the consolidated balance sheets:
|  |  | September 30, 2021 |  | December 31, 2020
| Level |  | Principal Amount |  | Carrying Value |  | Fair Value |  | Principal Amount |  | Carrying Value |  | Fair Value
Loans: |  |  |  |  |  |  |  |  |  |  |  |  |
Loans held for investment, net | 3 |  | $ | 482,089,565 |  |  | $ | 484,782,215 |  |  | $ | 478,397,706 |  |  | $ | 419,924,758 |  |  | $ | 421,725,220 |  |  | $ | 415,113,225 |
Loans held for investment acquired through participation, net | 3 |  | — |  | — |  |  | — |  |  | 4,250,000 |  |  | 4,294,053 |  |  | 4,293,969 |
Allowance for loan losses |  |  | — |  |  | (4,319,563) |  |  | — |  |  | — |  |  | (3,738,758) |  |  | — |
Total loans |  |  | $ | 482,089,565 |  |  | $ | 480,462,652 |  |  | $ | 478,397,706 |  |  | $ | 424,174,758 |  |  | $ | 422,280,515 |  |  | $ | 419,407,194 |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |
Term loan payable | 3 |  | $ | 93,595,027 |  |  | $ | 91,633,624 |  |  | $ | 94,197,966 |  |  | $ | 107,584,451 |  |  | $ | 105,245,801 |  |  | $ | 107,248,555 |
Unsecured notes payable | 1 |  | 85,125,000 |  |  | 81,706,136 |  |  | 85,193,100 |  |  | — |  |  | — |  |  | — |
Obligations under participation agreements | 3 |  | 105,566,232 |  |  | 106,190,225 |  |  | 105,281,167 |  |  | 71,266,303 |  |  | 71,581,897 |  |  | 70,693,207 |
Mortgage loan payable | 3 |  | 32,164,575 |  |  | 32,301,666 |  |  | 32,391,423 |  |  | 44,020,225 |  |  | 44,117,293 |  |  | 44,348,689 |
Secured borrowing | 3 |  | 31,477,882 |  |  | 31,525,439 |  |  | 31,169,148 |  |  | 18,281,848 |  |  | 18,187,663 |  |  | 17,037,032 |
Revolving line of credit payable | 3 |  | 25,299,713 |  |  | 24,832,405 |  |  | 25,299,713 |  |  | — |  |  | — |  |  | — |
Total liabilities |  |  | $ | 373,228,429 |  |  | $ | 368,189,495 |  |  | $ | 373,532,517 |  |  | $ | 241,152,827 |  |  | $ | 239,132,654 |  |  | $ | 239,327,483 |
Fair Value Measurement Inputs and Valuation Techniques | The following table summarizes the valuation techniques and significant unobservable inputs used by the Company to value the Level 3 loans as of September 30, 2021 and December 31, 2020. The tables are not intended to be all-inclusive, but instead identify the significant unobservable inputs relevant to the determination of fair values.
|  | Fair Value at September 30, 2021 | Primary Valuation Technique |  | Unobservable Inputs |  | September 30, 2021
Asset Category |  |  |  | Minimum | Maximum | Weighted Average
Assets: |  |  |  |  |  |  |  |  |  |
Loans held for investment, net |  | $ | 478,397,706 |  |  | Discounted cash flow |  | Discount rate |  | 4.28 | % | 15.00 | % | 9.19 | %
Loans held for investment acquired through participation, net |  | — |  |  | Discounted cash flow |  | Discount rate |  | 0.00 | % | 0.00 | % | 0.00 | %
Total Level 3 Assets |  | $ | 478,397,706 |  |  |  |  |  |  |  |  |
Liabilities: |  |  |  |  |  |  |  |  |  |
Term loan payable |  | $ | 94,197,966 |  |  | Discounted cash flow |  | Discount rate |  | 4.00 | % | 4.00 | % | 4.00 | %
Obligations under Participation Agreements |  | 105,281,167 |  |  | Discounted cash flow |  | Discount rate |  | 7.13 | % | 15.00 | % | 11.65 | %
Mortgage loan payable |  | 32,391,423 |  |  | Discounted cash flow |  | Discount rate |  | 6.08 | % | 6.08 | % | 6.08 | %
Secured borrowing |  | 31,169,148 |  |  | Discounted cash flow |  | Discount rate |  | 7.12 | % | 7.12 | % | 7.12 | %
Revolving line of credit |  | 25,299,713 |  |  | Discounted cash flow |  | Discount rate |  | 4.00 | % | 4.00 | % | 4.00 | %
Total Level 3 Liabilities |  | $ | 288,339,417 |  |  |  |  |  |  |  |  |
|  | Fair Value at December 31, 2020 | Primary Valuation Technique |  | Unobservable Inputs |  | December 31, 2020
Asset Category |  |  |  | Minimum | Maximum | Weighted Average
Assets: |  |  |  |  |  |  |  |  |  |
Loans held for investment, net |  | $ | 415,113,225 |  |  | Discounted cash flow |  | Discount rate |  | 5.29 | % | 20.05 | % | 10.38 | %
Loans held for investment acquired through participation, net |  | 4,293,969 |  |  | Discounted cash flow |  | Discount rate |  | 12.89 | % | 12.89 | % | 12.89 | %
Total Level 3 Assets |  | $ | 419,407,194 |  |  |  |  |  |  |  |  |
Liabilities: |  |  |  |  |  |  |  |  |  |
Term loan payable |  | $ | 107,248,555 |  |  | Discounted cash flow |  | Discount rate |  | 5.25 | % | 5.25 | % | 5.25 | %
Obligations under Participation Agreements |  | 70,693,207 |  |  | Discounted cash flow |  | Discount rate |  | 9.75 | % | 20.05 | % | 12.58 | %
Mortgage loan payable |  | 44,348,689 |  |  | Discounted cash flow |  | Discount rate |  | 6.08 | % | 6.08 | % | 6.08 | %
Secured borrowing |  | 17,037,032 |  |  | Discounted cash flow |  | Discount rate |  | 11.25 | % | 11.25 | % | 11.25 | %
Total Level 3 Liabilities |  | $ | 239,327,483 |  |  |  |  |  |  |  |  |

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- Definition Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19279-110258 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2C -URI http://asc.fasb.org/extlink&oid=123874694&loc=SL7498348-110258 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (bb) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 + Details
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- Definition Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (bbb) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 + Details
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- Definition Tabular disclosure of marketable securities. This may consist of investments in certain debt and equity securities, short-term investments and other assets. + References No definition available. + Details
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