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Fair Value Measurements (Tables)

9 Months Ended

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

X

- 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.

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Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique for each separate class of asset and liability measured on recurring and nonrecurring basis.

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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).

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