Investments and Fair Value (Tables)

9 Months Ended

Sep. 30, 2022

Investments, All Other Investments [Abstract]

Investment Holdings, Schedule of Investments

The following tables show the composition of the investment portfolio, at amortized cost and fair value at September 30, 2022 and December 31, 2021, respectively (with corresponding percentage of total portfolio investments):

	September 30, 2022
	Investments at Amortized Cost		Percentage of Amortized Cost		Investments at Fair Value		Percentage of Fair Value
Loans	$	75,818,192	65.4	%	$	76,311,192	67.5	%
Loans through participation interest (Note 4)	40,089,419		34.6	%	36,738,949		32.5	%
Marketable securities	—		—	%	—		—	%
Total	$	115,907,611	100.0	%	$	113,050,141	100.0	%

	December 31, 2021
	Investments at Amortized Cost		Percentage of Amortized Cost		Investments at Fair Value		Percentage of Fair Value
Loans	$	60,352,932	54.9	%	$	61,281,259	55.4	%
Loans through participation interest (Note 4)	48,780,897		44.4	%	48,349,374		43.8	%
Marketable securities	789,335		0.7	%	879,272		0.8	%
Total	$	109,923,164	100.0	%	$	110,509,905	100.0	%

Fair Value Disclosures [Abstract]

Fair value measurements of marketable securities, by major class

The following tables present fair value measurements of investments, by major class, as of September 30, 2022 and December 31, 2021, according to the fair value hierarchy:

	September 30, 2022
	Fair Value Measurements
	Level 1		Level 2		Level 3		Total
Investments:
Loans	$	—	$	—	$	76,311,192	$	76,311,192
Loans through participation interest	—		—		36,738,949		36,738,949
Marketable securities	—		—		—		—
Total Investments	$	—	$	—	$	113,050,141	$	113,050,141
Obligations under participation agreements	$	—	$	—	$	6,114,979	$	6,114,979

	December 31, 2021
	Fair Value Measurements
	Level 1		Level 2		Level 3		Total
Investments:
Loans	$	—	$	—	$	61,281,259	$	61,281,259
Loans through participation interest	—		—		48,349,374		48,349,374
Marketable securities	879,272		—		—		879,272
Total Investments	$	879,272	$	—	$	109,630,633	$	110,509,905
Obligations under participation agreements	$	—	$	—	$	4,883,877	$	4,883,877

Assets Measured on Recurring Basis, Unobservable Input Reconciliation

Changes in the Company’s Level 3 investments for the nine months ended September 30, 2022 and 2021 were as follows:

	Nine Months Ended September 30, 2022
	Loans		Loans Through Participation		Total Loan Investments		Obligations under Participation Agreements
Balance as of January 1, 2022	$	61,281,259	$	48,349,374	$	109,630,633	$	4,883,877
Purchases of investments	29,872,400		18,204,715		48,077,115		—
Repayments of investments	(15,000,000)		(27,082,531)		(42,082,531)		—
Net change in unrealized (depreciation) appreciation on   investments	(435,327)		(2,918,956)		(3,354,283)		—
Amortization and accretion of investment-related fees, net	592,860		186,347		779,207		47,955
Proceeds from obligations under participation agreements	—		—		—		1,225,275
Net change in unrealized depreciation on obligations under    participation agreements	—		—		—		(42,128)
Balance as of September 30, 2022	$	76,311,192	$	36,738,949	$	113,050,141	$	6,114,979
Net change in unrealized appreciation or depreciation for    the period relating to those Level 3 assets that were still    held by the Company at the end of the period:
Net change in unrealized appreciation or depreciation on    loan investments and obligations under participation    agreements	$	(232,375)	$	(2,918,947)	$	(3,151,322)	$	(42,128)

	Nine Months Ended September 30, 2021
	Loans		Loans Through Participation		Total Loan Investments		Obligations under Participation Agreements
Balance as of January 1, 2021	$	20,209,473	$	45,963,805	$	66,173,278	$	4,293,971
Purchases of investments	65,985,000		27,384,684		93,369,684		—
Repayments of investments	(52,520,000)		(18,871,678)		(71,391,678)		—
Net change in unrealized (depreciation) appreciation on     investments	267,447		(29,714)		237,733		—
PIK interest income, net	—		94,524		94,524		—
Amortization and accretion of investment-related fees, net	535,981		314,070		850,051		219,171
Realized loss on loan repayment	—		(168,106)		(168,106)		—
Proceeds from obligations under participation agreements	—		—		—		21,223,404
Repayment of obligations under participation agreements	—		—		—		(25,728,138)
Net change in unrealized depreciation on obligations under    participation agreements	—		—		—		(8,408)
Balance as of September 30, 2021	$	34,477,901	$	54,687,585	$	89,165,486	$	—
Net change in unrealized appreciation or depreciation for    the period relating to those Level 3 assets that were still    held by the Company at the end of the period:
Net change in unrealized depreciation or appreciation on loan investments and obligations under participation agreements	$	325,200	$	(18,660)	$	306,540	$	—

Fair Value Measurement Inputs and Valuation Techniques

The following table summarizes the significant unobservable inputs used by the Company to value the Level 3 investments as of September 30, 2022 and December 31, 2021. The table is not intended to be all-inclusive, but instead identifies the significant unobservable inputs relevant to the determination of fair values.

September 30, 2022
			Primary Valuation Technique	Unobservable Input	Range				Weighted
Asset Category	Fair Value				Minimum		Maximum		Average
Assets:
Loans	$	76,311,192	Discounted cash flow	Discount rate	11.14	%	18.04	%	14.12	%
Loans through participation interest	36,738,949		Discounted cash flow	Discount rate	15.00	%	15.25	%	15.05	%
Total Level 3 Assets	$	113,050,141
Liabilities:
Obligations under participation agreements	$	6,114,979	Discounted cash flow	Discount rate	11.14	%	11.14	%	11.14	%

December 31, 2021
			Primary Valuation Technique	Unobservable Input	Range				Weighted
Asset Category	Fair Value				Minimum		Maximum		Average
Assets:
Loans	$	61,281,259	Discounted cash flow	Discount rate	8.25	%	15.00	%	12.58	%
Loans through participation interest	48,349,374		Discounted cash flow	Discount rate	12.37	%	15.00	%	14.40	%
Total Level 3 Assets	$	109,630,633
Liabilities:
Obligations under participation agreements	$	4,883,877	Discounted cash flow	Discount rate	8.25	%	8.25	%	8.25	%

Schedule of Carrying Values and Estimated Fair Values of Debt Instruments

The table below presents detailed information regarding the unsecured notes payable and term loan payable at September 30, 2022 and December 31, 2021:

		September 30, 2022						December 31, 2021
	Level	Principal Balance		Carrying Value		Fair Value		Principal Balance		Carrying Value		Fair Value
Unsecured notes payable (1)(2)	1	$	38,375,000	$	36,782,463	$	33,770,000	$	38,375,000	$	36,497,612	$	39,403,450
Term loan payable (3)(4)	3	25,000,000		24,279,081		25,000,000		5,000,000		4,170,164		5,000,000
		$	63,375,000	$	61,061,544	$	58,770,000	$	43,375,000	$	40,667,776	$	44,403,450

_______________

(1)Carrying value is net of unamortized issue discount of $0.9 million and $1.0 million, and unamortized deferred financing costs of $0.7 million and $0.9 million as of September 30, 2022 and December 31, 2021, respectively.

(2)Valuation falls under Level 1 of the fair value hierarchy, which is based on the trading price of $22.00 and $25.67 as of the close of business day on September 30, 2022 and December 31, 2021, respectively.

(3)Carrying value is net of unamortized issue discount of $0.5 million and $0.6 million, and unamortized deferred financing costs of $0.2 million and $0.2 million as of September 30, 2022 and December 31, 2021, respectively.

(4)Valuation falls under Level 3 of the fair value hierarchy, which is based on a discounted cash flow model with a discount rate of 5.625%.