XML 41 R30.htm IDEA: XBRL DOCUMENT v3.22.4

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2022

Fair Value Disclosures [Abstract]

Schedule of Fair Value Measurements of Marketable Securities, by Major Class

The following tables present fair value measurements of marketable securities, by major class according to the fair value hierarchy as of:

						December 31, 2022
						Fair Value Measurements
						Level 1						Level 2						Level 3						Total
Marketable Securities:
Debt securities						$	147,960					$	—					$	—					$	147,960
Total						$	147,960					$	—					$	—					$	147,960

						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

Schedule of Activities of the Marketable Securities

The following table presents the activities of the marketable securities:

						Years Ended December 31,
						2022						2021
Beginning balance						$	1,310,000					$	1,287,500
Purchases						136,265						6,479,148
Proceeds from sale						(1,259,417)						(6,608,396)
Reclassification of net realized gains on marketable securities into earnings						83,411						129,248
Unrealized (losses) gains on marketable securities						(122,299)						22,500
Ending balance						$	147,960					$	1,310,000

Schedule of 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 as of:

									December 31, 2022																		December 31, 2021
			Level						Principal Amount						Carrying Value						Fair Value						Principal Amount						Carrying Value						Fair Value
Loans:
Loans held for investment			3						$	604,068,894					$	609,889,829					$	581,182,892					$	467,843,785					$	470,988,063					$	454,840,551
Loans held for investment    acquired through    participation			3						41,726,565						42,072,828						41,962,862						12,307,366						12,343,732						12,361,068
Allowance for loan losses									—						(25,471,890)						—						—						(13,658,481)						—
Total loans									$	645,795,459					$	626,490,767					$	623,145,754					$	480,151,151					$	469,673,314					$	467,201,619
Liabilities:
Term loan payable			3						$	25,000,000					$	25,000,000					$	25,000,000					$	93,763,470					$	91,940,062					$	94,344,595
Unsecured notes payable			1						123,500,000						116,530,673						103,481,748						85,125,000						81,856,799						85,210,125
Repurchase agreement payable			3						170,876,606						169,304,710						170,876,606						44,569,600						43,974,608						44,569,600
Obligations under participation    agreements			3						12,584,958						12,680,594						12,680,595						42,048,294						42,232,027						41,475,060
Mortgage loan payable			3						29,252,308						29,488,326						29,394,870						31,962,692						32,134,295						32,192,785
Secured borrowing			3						—						—						—						34,521,104						34,586,129						34,425,029
Revolving line of credit    payable			3						90,135,865						89,807,448						90,135,865						38,575,895						38,186,472						38,575,895
Total liabilities									$	451,349,737					$	442,811,751					$	431,569,684					$	370,566,055					$	364,910,392					$	370,793,089

Schedule of Fair Value Measurement Inputs and Valuation Techniques

The following tables summarize the valuation techniques and significant unobservable inputs used by the Company to value the Level 3 loans as of December 31, 2022 and 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 December 31, 2022						Primary Valuation Technique						Unobservable Inputs						December 31, 2022
Asset Category																								Minimum			Maximum			Weighted Average
Assets:
Loans held for investment, net						$	581,182,892					Discounted cash flow						Discount rate						8.71		%	19.36		%	11.46		%
Loans held for investment acquired through    participation, net						41,962,862						Discounted cash flow						Discount rate						15.25		%	17.06		%	16.67		%
Total Level 3 Assets						$	623,145,754
Liabilities:
Repurchase agreement payable						170,876,606						Discounted cash flow						Discount rate						5.22		%	6.17		%	6.82		%
Obligations under participation agreements						12,680,595						Discounted cash flow						Discount rate						16.36		%	16.36		%	16.36		%
Mortgage loan payable						29,394,870						Discounted cash flow						Discount rate						8.24		%	8.24		%	8.24		%
Term loan payable						25,000,000						Discounted cash flow						Discount rate						5.63		%	5.63		%	5.63		%
Revolving line of credit						90,135,865						Discounted cash flow						Discount rate						7.64		%	7.64		%	7.64		%
Total Level 3 Liabilities						$	328,087,936

						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 https://asc.fasb.org/extlink&oid=126976982&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 https://asc.fasb.org/extlink&oid=126976982&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 https://asc.fasb.org/extlink&oid=126976982&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 https://asc.fasb.org/extlink&oid=126976982&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 https://asc.fasb.org/extlink&oid=126976982&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 https://asc.fasb.org/extlink&oid=126976982&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 https://asc.fasb.org/extlink&oid=126976982&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 https://asc.fasb.org/extlink&oid=126976982&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 https://asc.fasb.org/extlink&oid=126976982&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