FAIR VALUE

6 Months Ended

Jun. 30, 2024

Fair Value Disclosures [Abstract]

FAIR VALUE

FAIR VALUE

The following tables summarize the valuation of the Company's assets and liabilities carried at fair value on a recurring basis within the fair value hierarchy levels as of June 30, 2024 and December 31, 2023:

	June 30, 2024
	Quoted prices in active markets for identical assets Level 1		Significant other observable inputs Level 2		Unobservable inputs Level 3		Balance as of June 30, 2024
Assets:
Mortgage servicing rights	$	—	$	—	$	686,325	$	686,325
Total	$	—	$	—	$	686,325	$	686,325

	December 31, 2023
	Quoted prices in active markets for identical assets Level 1		Significant other observable inputs Level 2		Unobservable inputs Level 3		Balance as of December 31, 2023
Assets:
Mortgage servicing rights	$	—	$	—	$	691,973	$	691,973
Total	$	—	$	—	$	691,973	$	691,973

As of June 30, 2024 and December 31, 2023, the Company had $686,325 and $691,973, respectively, in Level 3 assets. The Company's Level 3 assets are comprised of MSRs. For more detail about Level 3 assets, also see Notes 2 and 7.

The following table provides quantitative information about the significant unobservable inputs used in the fair value measurement of the Company's MSRs classified as Level 3 fair value assets at June 30, 2024 and December 31, 2023:

As of June 30, 2024
Valuation Technique	Unobservable Input	Range		Weighted Average
Discounted cash flow	Constant prepayment rate	8.0 - 8.5%		8.0	%
	Discount rate	12.0	%	12.0	%

As of December 31, 2023
Valuation Technique	Unobservable Input	Range		Weighted Average
Discounted cash flow	Constant prepayment rate	8.0 - 10.3%		8.2	%
	Discount rate	12.0	%	12.0	%

As discussed in Note 2, GAAP requires disclosure of fair value information about financial instruments, whether or not recognized in the consolidated balance sheets, for which it is practicable to estimate that value. The following table details the carrying amount, face amount and fair value of the financial instruments described in Note 2:

	June 30, 2024
	Level in Fair Value Hierarchy	Carrying Value		Face Amount		Fair Value
Assets:
Cash and cash equivalents	1	$	65,135,065	$	65,135,065	$	65,135,065
Restricted cash	1	1,457,342		1,457,342		1,457,342
Commercial mortgage loans held-for-investment, net	3	1,186,653,339		1,201,753,001		1,198,107,649
Total		$	1,253,245,746	$	1,268,345,408	$	1,264,700,056
Liabilities:
Collateralized loan obligations and secured financings	2	$	995,895,094	$	999,367,019	$	991,939,031
Secured Term Loan	3	47,344,478		47,750,000		46,079,098
Total		$	1,043,239,572	$	1,047,117,019	$	1,038,018,129

	December 31, 2023
	Level in Fair Value Hierarchy	Carrying Value		Face Amount		Fair Value
Assets:
Cash and cash equivalents	1	$	51,247,063	$	51,247,063	$	51,247,063
Restricted cash	1	270,129		270,129		270,129
Commercial mortgage loans held-for-investment, net	3	1,383,881,197		1,397,385,160		1,388,355,730
Total		$	1,435,398,389	$	1,448,902,352	$	1,439,872,922
Liabilities:
Collateralized loan obligations and secured financings	2	$	1,146,210,752	$	1,151,450,000	$	1,128,250,991
Secured term loan	3	47,220,226		47,750,000		46,191,524
Total		$	1,193,430,978	$	1,199,200,000	$	1,174,442,515

Estimates of cash and cash equivalents and restricted cash are measured using quoted prices, or Level 1 inputs. Estimates of the fair value of collateralized loan obligations and secured financings are measured using observable, quoted market prices, in active markets, or Level 2 inputs. All other fair value significant estimates are measured using unobservable inputs, or Level 3 inputs. See Note 2 for further discussion regarding fair value measurement of certain of our assets and liabilities.