XML 34 R25.htm IDEA: XBRL DOCUMENT
v3.22.1

Fair Value Measurements (Tables) | 3 Months Ended
--- | ---
Mar. 31, 2022
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 March 31, 2022 and December 31, 2021, according to the fair value hierarchy:
|  | March 31, 2022
|  | Fair Value Measurements
|  | Level 1 |  | Level 2 |  | Level 3 |  | Total
Marketable Securities: |  |  |  |  |  |  |  |
Equity securities |  | $ | 510,151 |  |  | $ | — |  |  | $ | — |  |  | $ | 510,151 |
Total |  | $ | 510,151 |  |  | $ | — |  |  | $ | — |  |  | $ | 510,151 |
|  | December 31, 2021
|  | Fair Value Measurements
|  | Level 1 |  | Level 2 |  | Level 3 |  | Total
Marketable Securities: |  |  |  |  |  |  |  |
Equity securities |  | $ | 1,310,000 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,310,000 |
Total |  | $ | 1,310,000 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,310,000 |
Activities of the marketable securities | The following table presents the activities of the marketable securities for the periods presented.
|  | Three Months Ended March 31,
|  | 2022 |  | 2021
Beginning balance |  | $ | 1,310,000 |  |  | $ | 1,287,500 |
Purchases |  | — |  |  | 4,979,088 |
Proceeds from sale |  | (628,715) |  |  | — |
Unsettled sale |  | (123,223) |  |  | — |
Reclassification of net realized gains on marketable securities into earnings |  | 51,133 |  |  | — |
Unrealized losses on marketable securities |  | (99,044) |  |  | (14,608) |
Ending balance |  | $ | 510,151 |  |  | $ | 6,251,980 |
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:
|  |  | March 31, 2022 |  | December 31, 2021
| Level |  | Principal Amount |  | Carrying Value |  | Fair Value |  | Principal Amount |  | Carrying Value |  | Fair Value
Loans: |  |  |  |  |  |  |  |  |  |  |  |  |
Loans held for investment | 3 |  | $ | 554,631,920 |  |  | $ | 558,790,473 |  |  | $ | 544,060,026 |  |  | $ | 467,843,785 |  |  | $ | 470,988,063 |  |  | $ | 454,840,551 |
Loans held for investment acquired through participation | 3 |  | 12,889,053 |  |  | 12,937,304 |  |  | 12,946,931 |  |  | 12,307,366 |  |  | 12,343,732 |  |  | 12,361,068 |
Allowance for loan losses |  |  | — |  |  | (13,708,777) |  |  | — |  |  | — |  |  | (13,658,481) |  |  | — |
Total loans |  |  | $ | 567,520,973 |  |  | $ | 558,019,000 |  |  | $ | 557,006,957 |  |  | $ | 480,151,151 |  |  | $ | 469,673,314 |  |  | $ | 467,201,619 |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |
Term loan payable | 3 |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 93,763,470 |  |  | $ | 91,940,062 |  |  | $ | 94,344,595 |
Unsecured notes payable | 1 |  | 85,125,000 |  |  | 82,010,107 |  |  | 84,239,700 |  |  | 85,125,000 |  |  | 81,856,799 |  |  | 85,210,125 |
Repurchase agreement payable | 3 |  | 176,519,149 |  |  | 173,698,002 |  |  | 176,519,149 |  |  | 44,569,600 |  |  | 43,974,608 |  |  | 44,569,600 |
Obligations under participation agreements | 3 |  | 57,911,481 |  |  | 58,587,148 |  |  | 57,974,834 |  |  | 42,048,294 |  |  | 42,232,027 |  |  | 41,475,060 |
Mortgage loan payable | 3 |  | 31,757,725 |  |  | 31,963,840 |  |  | 31,989,884 |  |  | 31,962,692 |  |  | 32,134,295 |  |  | 32,192,785 |
Secured borrowing | 3 |  | 37,371,625 |  |  | 37,503,542 |  |  | 37,508,341 |  |  | 34,521,104 |  |  | 34,586,129 |  |  | 34,425,029 |
Revolving line of credit payable | 3 |  | 64,953,549 |  |  | 64,414,007 |  |  | 64,953,549 |  |  | 38,575,895 |  |  | 38,186,472 |  |  | 38,575,895 |
Total liabilities |  |  | $ | 453,638,529 |  |  | $ | 448,176,646 |  |  | $ | 453,185,457 |  |  | $ | 370,566,055 |  |  | $ | 364,910,392 |  |  | $ | 370,793,089 |
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 March 31, 2022 and December 31, 2021. 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 March 31, 2022 | Primary Valuation Technique |  | Unobservable Inputs |  | March 31, 2022
Asset Category |  |  |  | Minimum | Maximum | Weighted Average
Assets: |  |  |  |  |  |  |  |  |  |
Loans held for investment, net |  | $ | 544,060,026 |  |  | Discounted cash flow |  | Discount rate |  | 4.14 | % | 15.00 | % | 8.30 | %
Loans held for investment acquired through participation, net |  | 12,946,931 |  |  | Discounted cash flow |  | Discount rate |  | 8.45 | % | 15.00 | % | 12.33 | %
Total Level 3 Assets |  | $ | 557,006,957 |  |  |  |  |  |  |  |  |
Liabilities: |  |  |  |  |  |  |  |  |  |
Repurchase agreement payable |  | 176,519,149 |  |  | Discounted cash flow |  | Discount rate |  | 1.90 | % | 3.12 | % | 2.54 | %
Obligations under participation agreements |  | 57,974,834 |  |  | Discounted cash flow |  | Discount rate |  | 14.60 | % | 15.00 | % | 14.83 | %
Mortgage loan payable |  | 31,989,884 |  |  | Discounted cash flow |  | Discount rate |  | 6.08 | % | 6.08 | % | 6.08 | %
Secured borrowing |  | 37,508,341 |  |  | Discounted cash flow |  | Discount rate |  | 5.89 | % | 5.89 | % | 5.89 | %
Revolving line of credit |  | 64,953,549 |  |  | Discounted cash flow |  | Discount rate |  | 4.00 | % | 4.00 | % | 4.00 | %
Total Level 3 Liabilities |  | $ | 368,945,757 |  |  |  |  |  |  |  |  |
|  | Fair Value at December 31, 2021 | Primary Valuation Technique |  | Unobservable Inputs |  | December 31, 2021
Asset Category |  |  |  | Minimum | Maximum | Weighted Average
Assets: |  |  |  |  |  |  |  |  |  |
Loans held for investment, net |  | $ | 454,840,551 |  |  | Discounted cash flow |  | Discount rate |  | 3.89 | % | 15.00 | % | 8.11 | %
Loans held for investment acquired through participation, net |  | 12,361,068 |  |  | Discounted cash flow |  | Discount rate |  | 8.25 | % | 15.00 | % | 12.33 | %
Total Level 3 Assets |  | $ | 467,201,619 |  |  |  |  |  |  |  |  |
Liabilities: |  |  |  |  |  |  |  |  |  |
Term loan payable |  | $ | 94,344,595 |  |  | Discounted cash flow |  | Discount rate |  | 4.00 | % | 4.00 | % | 4.00 | %
Repurchase agreement payable |  | 44,569,600 |  |  | Discounted cash flow |  | Discount rate |  | 2.45 | % | 2.74 | % | 2.57 | %
Obligations under participation agreements |  | 41,475,060 |  |  | Discounted cash flow |  | Discount rate |  | 12.37 | % | 15.00 | % | 14.31 | %
Mortgage loan payable |  | 32,192,785 |  |  | Discounted cash flow |  | Discount rate |  | 6.08 | % | 6.08 | % | 6.08 | %
Secured borrowing |  | 34,425,029 |  |  | Discounted cash flow |  | Discount rate |  | 6.64 | % | 6.64 | % | 6.64 | %
Revolving line of credit |  | 38,575,895 |  |  | Discounted cash flow |  | Discount rate |  | 4.00 | % | 4.00 | % | 4.00 | %
Total Level 3 Liabilities |  | $ | 285,582,964 |  |  |  |  |  |  |  |  |

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. + 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
Name: | us-gaap_FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition 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. + 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 (bbb) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisValuationTechniquesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_FairValueAssetsMeasuredOnNonrecurringBasisTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_MarketableSecuritiesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration