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Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2024

Fair Value Disclosures [Abstract]

Schedule of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2024 and December 31, 2023:


		As of September 30, 2024
		Level 1				Level 2				Level 3				Total
Financial assets:
Loan held for sale, at fair value(1)		$	-			$	6,000,000			$	-			$	6,000,000

(1) The Company's loan held for sale as of September 30, 2024 was sold on October 1, 2024 (Note 15). The sale price of $6.0 million was determined prior to the balance sheet date and accordingly this financial asset is included in Level 2.


		As of December 31, 2023
		Level 1				Level 2				Level 3				Total
Financial assets:
Debt securities, at fair value		$	-			$	842,269			$	-			$	842,269

Schedule of Carrying Values and Fair Values of the Company’s Financial Assets and Liabilities

As of September 30, 2024 and December 31, 2023, the carrying values and fair values of the Company’s financial assets and liabilities recorded at amortized cost are as follows:


				As of September 30,								As of December 31,
				2024								2023
		Level in Fair Value Hierarchy		Carrying Value				Fair Value				Carrying Value				Fair Value
Financial assets:
Loans held for investment		3		$	354,672,510			$	353,727,754			$	353,640,610			$	351,952,876
Cash and cash equivalents		1			6,760,433				6,760,433				7,898,040				7,898,040
Interest receivable		2			484,361				484,361				1,004,140				1,004,140
Other receivables and assets, net		2			614,762				614,762				705,960				705,960
Related party receivables		2			1,471,621				1,471,621				107,225				107,225

Financial liabilities:
Revolving loan		2		$	54,000,000			$	53,738,783			$	66,000,000			$	65,633,408
Accounts payable and other liabilities		2			1,357,718				1,357,718				1,135,355				1,135,355
Interest reserve		2			2,580,887				2,580,887				1,074,889				1,074,889
Management and incentive fees payable		2			1,669,116				1,669,116				3,243,775				3,243,775
Related party payables		2			1,570,544				1,570,544				2,051,531				2,051,531
Dividend payable		2			9,267,714				9,267,714				13,866,656				13,866,656

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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