Off-balance sheet commitments may consist of unfunded commitments on delayed draw term loans. The Company does not have any relationships with unconsolidated entities or financial partnerships, such as entities often referred to as structured investment vehicles, special purpose entities or variable interest entities, established to facilitate off-balance sheet arrangements or other contractually narrow or limited purposes. Further, the Company has not guaranteed any obligations of unconsolidated entities or entered into any commitment to provide additional funding to any such entities. As of December 31, 2023 and 2022, the Company had the following unfunded commitments on existing loans.


	As of December 31, 2023			As of December 31, 2022
Total original loan commitments	$	378,849,998		$	351,367,706
Less: drawn commitments	$	(371,349,998	)	$	(336,323,706	)
Total undrawn commitments	$	7,500,000		$	15,044,000

Refer to “Note 3 – Loans Held for Investment, Net” for further information regarding the CECL Reserve attributed to unfunded commitments. Total original loan commitments includes the impact of principal payments received since origination of the loan and future amounts to be advanced at sole discretion of the lender.

The following table summarizes our material commitments as of December 31, 2023:


	Total		2024		2025		2026		2027		2028		Thereafter
Undrawn commitments	$	7,500,000	$	-	$	-	$	7,500,000	$	-	$	-	$	-
Revolving loan (1)		66,000,000		66,000,000		-		-		-		-		-
Total	$	73,500,000	$	66,000,000	$	-	$	7,500,000	$	-	$	-	$	-

(1) Subsequent to December 31, 2023, the Company extended the contractual maturity date of the Revolving Loan to June 30, 2026 (Note 14).

The Company from time to time may be a party to litigation in the normal course of business. As of December 31, 2023, the Company is not aware of any legal claims that could materially impact its business, financial condition or results of operations.

The Company’s ability to grow or maintain its business depends, in part, on state laws pertaining to the cannabis industry. New laws that are adverse to the Company’s portfolio companies may be enacted, and current favorable state or national laws or enforcement guidelines relating to cultivation, production, and distribution of cannabis may be modified or eliminated in the future, which would impede the Company’s ability to grow and could materially and adversely affect its business.

Management’s plan to mitigate risks include monitoring the legal landscape as deemed appropriate. Also, should a loan default or otherwise be seized, the Company may be prohibited from owning cannabis assets and thus could not take possession of collateral, in which case the Company would look to sell the loan, provide consent to allow the borrower to sell the real estate to a third party, institute a foreclosure proceeding to have the real estate sold or evict the tenant, have the cannabis operations removed from the property and take title to the underlying real estate, each of which may result in the Company realizing a loss on the transaction.