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 June 30, 2024 and December 31, 2023, the Company had the following unfunded commitments on existing loans.


	As of June 30, 2024			As of December 31, 2023
Total original loan commitments	$	409,306,770		$	378,849,998
Less: drawn commitments	$	(403,306,770	)	$	(371,349,998	)
Total undrawn commitments	$	6,000,000		$	7,500,000

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 June 30, 2024:


	Total		2024		2025		2026		2027(1)		2028		Thereafter
Undrawn commitments	$	6,000,000	$	-	$	-	$	-	$	6,000,000	$	-	$	-
Total	$	6,000,000	$	-	$	-	$	-	$	6,000,000	$	-	$	-

(1) The undrawn commitment presented relates to Loan #32, which has an outstanding principal balance of $0 as of June 30, 2024. The timing of funding this commitment is subject to certain conditions precedent being met. This amount is included in the column representing the maturity date of this loan, though the off-balance sheet liability to fund this commitment may occur prior to such date.

The Company from time to time may be a party to litigation in the normal course of business. As of June 30, 2024, 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.