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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.

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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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