USE OF SPECIAL PURPOSE ENTITIES AND VARIABLE INTEREST ENTITIES (Tables)

6 Months Ended

Jun. 30, 2025

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Condensed Consolidated Balance Sheets

The carrying values of the Company's total assets and liabilities related to the 2021-FL1 CLO and LMF 2023-1 Financing at June 30, 2025 and December 31, 2024, included the following VIE assets and liabilities:

ASSETS	June 30, 2025		December 31, 2024
Cash, cash equivalents and restricted cash	$	2,152,616	$	2,391,042
Accrued interest receivable	5,199,101		5,861,355
Loans held for investment, net of allowance for credit losses	902,920,415		1,049,886,009
Real estate owned, held-for-investment, net	$	23,818,343	$	—
Total Assets	$	934,090,475	$	1,058,138,406
LIABILITIES
Accrued interest payable	$	2,099,047	$	2,611,416
Collateralized loan obligations and secured financings(1)	709,863,062		828,390,189
Accounts payable	806,529		—
Total Liabilities	$	712,768,638	$	831,001,605
Equity	221,321,837		227,136,801
Total liabilities and equity	$	934,090,475	$	1,058,138,406

(1)     The stated maturity of the collateral loan obligations per the terms of the underlying collateralized loan obligation agreement is June 14, 2039 for the 2021-FL1 CLO and the stated maturity of the secured financing per the terms of the underlying indenture is July 20, 2032.

Schedule of Loan and Borrowing Characteristics

The following tables present certain loan and borrowing characteristics of the 2021-F1 CLO and LMF 2023-1 Financing as of June 30, 2025 and December 31, 2024:

As of June 30, 2025
Collateralized Loan Obligations/Financings	Count	Principal Value(1)		Carrying Value(2)		Wtd. Avg. Coupon(3)
Collateral (loan investments)	54	$	920,622,643	$	902,920,415	7.87%
Collateral (REO assets)	2	$	26,867,505	$	23,818,343	N/A
Financing provided	2	$	711,667,540	$	709,863,062	6.64%

As of December 31, 2024
Collateralized Loan Obligations/Financings	Count	Principal Value		Carrying Value(1)		Wtd. Avg. Coupon(2)
Collateral (loan investments)	65	$	1,065,563,646	$	1,049,886,009	8.08%
Financing provided	2	$	830,698,696	$	828,390,189	6.66%

(1)     The principal value for Collateral (REO assets) is the initial loan exposure

(2)     The carrying value of the collateral is net of unaccreted purchase discounts of $2,370,234 and $3,577,207 and allowance for credit loss of $14,247,820 and $11,320,220 as of June 30, 2025 and December 31, 2024, respectively. The carrying value for LMF 2023-1 Financing is net of debt issuance costs of $1,804,478 and 2,308,507 for June 30, 2025 and December 31, 2024, respectively.

(3)    Weighted average coupon for loan investments assumes applicable 30-day term SOFR of 4.31% and 4.51% as of June 30, 2025 and December 31, 2024, respectively, inclusive of weighted average interest rate floors of 0.97% and 0.63%, and spreads of 3.56% and 3.53%, respectively. Weighted average coupon for the financings assumes applicable 30-day term SOFR of 4.31% and 4.40% as of June 30, 2025 and December 31, 2024, respectively and spreads of 2.32% for June 30, 2025 and December 31, 2024, respectively.

Schedule of Condensed Consolidated Statements of Operations

The statement of operations related to the 2021-FL1 CLO and LMF 2023-1 Financing for the three and six months ended June 30, 2025 and June 30, 2024 include the following income and expense items:

Statements of Operations	Three Months Ended June 30, 2025		Three Months Ended June 30, 2024
Interest income	$	18,876,129	$	28,931,987
Interest expense	(12,646,774)		(20,178,657)
Net interest income	$	6,229,355	$	8,753,330
Less:
Provision for credit losses	(99,005)		(1,376,712)
Depreciation	(138,777)		—
General and administrative fees	(227,497)		(266,102)
Net (loss) income	$	5,764,076	$	7,110,516

Statements of Operations	Six Months Ended June 30, 2025		Six Months Ended June 30, 2024
Interest income	$	39,361,327	$	60,312,921
Interest expense	(26,283,248)		(41,690,411)
Net interest income	$	13,078,079	$	18,622,510
Less:
Provision for credit losses	(5,838,979)		(3,134,168)
Depreciation	(138,777)		—
General and administrative fees	(411,061)		(512,848)
Net (loss) income	$	6,689,262	$	14,975,494