Loans Held For Investment, Net (Tables)

3 Months Ended

Mar. 31, 2025

Loans Held For Investment, Net [Abstract]

Schedule of Loans Held for Investment by Interest Rate Type

The following tables present summarized information regarding our loans held for investment by interest rate type as of March 31, 2025 and December 31, 2024:

	As of March 31, 2025
		Total Principal		Original Issue Discount			Carrying Value		Percentage of loans held for investment
Fixed-rate loans		$	163,307,742	$	(591,962	)	$	162,715,780		40.7	%
Floating-rate loans			238,204,074		(1,464,375	)		236,739,699		59.3	%
Total		$	401,511,816	$	(2,056,337	)	$	399,455,479		100.0	%

	As of December 31, 2024
		Total Principal		Original Issue Discount			Carrying Value		Percentage of loans held for investment
Fixed-rate loans		$	149,771,871	$	(545,081	)	$	149,226,790		37.0	%
Floating-rate loans			254,949,683		(1,699,427	)		253,250,256		63.0	%
Total		$	404,721,554	$	(2,244,508	)	$	402,477,046		100.0	%

Schedule of Loans Held for Investment

The following tables summarize the Company’s aggregate portfolio of loans held for investment, net of the current expected credit loss reserve as of March 31, 2025 and December 31, 2024:

	As of March 31, 2025
	Outstanding Principal		Original Issue Discount			Carrying Value			Weighted Average Remaining Life (Years) (1)
Senior Term Loans	$	401,511,816	$	(2,056,337	)	$	399,455,479			2.1
Current expected credit loss reserve		-		-			(3,274,058	)
Total loans held at carrying value, net	$	401,511,816	$	(2,056,337	)	$	396,181,421

	As of December 31, 2024
	Outstanding Principal		Original Issue Discount			Carrying Value			Weighted Average Remaining Life (Years) (1)
Senior Term Loans	$	404,721,554	$	(2,244,508	)	$	402,477,046			2.2
Current expected credit loss reserve		-		-			(4,346,869	)
Total loans held at carrying value, net	$	404,721,554	$	(2,244,508	)	$	398,130,177

(1)Weighted average remaining life is calculated based on the carrying value of the loans as of March 31, 2025 and December 31, 2024, respectively.

Schedule of Activity Related to the CECL Reserve for Outstanding Balances

The following tables present changes in loans held at carrying value as of and for the three months ended March 31, 2025 and 2024.

	Principal			Original Issue Discount			Current Expected Credit Loss Reserve			Carrying Value
Balance at December 31, 2024	$	404,721,554		$	(2,244,508	)	$	(4,346,869	)	$	398,130,177
New fundings		4,365,832			(181,800	)		-			4,184,032
Principal repayment of loans		(9,170,628	)		-			-			(9,170,628	)
Accretion of original issue discount		-			369,971			-			369,971
PIK Interest		1,595,058			-			-			1,595,058
Decrease in provision for current expected credit losses		-			-			1,072,811			1,072,811
Balance at March 31, 2025	$	401,511,816		$	(2,056,337	)	$	(3,274,058	)	$	396,181,421

	Principal			Original Issue Discount			Current Expected Credit Loss Reserve			Carrying Value
Balance at December 31, 2023	$	355,745,305		$	(2,104,695	)	$	(4,972,647	)	$	348,667,963
New fundings		22,485,888			(105,081	)		-			22,380,807
Principal repayment of loans		(3,663,452	)		-			-			(3,663,452	)
Accretion of original issue discount		-			477,756			-			477,756
PIK Interest		3,008,593			-			-			3,008,593
Increase in provision for current expected credit losses		-			-			(383,371	)		(383,371	)
Balance at March 31, 2024	$	377,576,334		$	(1,732,020	)	$	(5,356,018	)	$	370,488,296

Schedule of Loans Held at Carrying Value Based on Information

A more detailed listing of the Company’s loans held at carrying value based on information available as of March 31, 2025, is as follows:

Loan (1)	Location(s)	Initial Funding Date (1)	Maturity Date (2)	Principal Balance		Original Issue Discount			Carrying Value		Percentage of Loans Held for Investment			Future Fundings		Interest Rate (3)	Periodic Payment (4)	YTM IRR (5)
1	Various	10/27/2022	10/30/2026	$	19,255,716	$	(271,789	)	$	18,983,927		4.8	%		-	P+6.5% Cash (8)	P&I	17.1%
2	Michigan	12/31/2021	12/31/2025		27,110,506		-			27,110,506		6.8	%		-	P+3% Cash (13)	I/O	17.3%
3	Various	11/18/2021	1/29/2027		21,384,473		(461,592	)		20,922,881		5.2	%		-	P+10.375% Cash, 2.75% PIK (11)(14)(15)	P&I	22.6%
4	Arizona	4/19/2021	6/17/2026		6,626,809		-			6,626,809		1.7	%		-	11.91% Cash	I/O	17.0%
6	Michigan	8/20/2021	1/30/2026		4,958,672		-			4,958,672		1.2	%		-	P+6.5% Cash (13)	P&I	17.2%
7	Illinois, Arizona	8/24/2021	6/30/2025		23,573,222		(27,357	)		23,545,865		5.9	%		-	P+6% Cash, 2% PIK (9)	I/O	19.3%
8	West Virginia	9/1/2021	12/31/2025		8,491,943		-			8,491,943		2.1	%		-	10% Cash	I/O	15.0%
9	Pennsylvania	3/31/2025	3/31/2028		16,576,987		(108,037	)		16,468,950		4.1	%		-	9.0% Cash (16)	I/O	9.5%
12	Various	11/8/2021	10/31/2027		13,285,201		(52,847	)		13,232,354		3.3	%		-	P+7% Cash, 2% PIK (10)	P&I	19.3%
16	Florida	12/30/2021	8/29/2025		6,557,500		(15,812	)		6,541,688		1.6	%		-	16.75% Cash	I/O	31.2%
18	Ohio	2/3/2022	12/31/2025		45,589,764		(326,924	)		45,262,840		11.3	%		-	P+1.75% Cash, 5% PIK (9)(17)	I/O	16.5%
19	Florida	3/11/2022	12/31/2025		18,378,759		(17,969	)		18,360,790		4.6	%		-	11% Cash, 5% PIK	I/O	16.5%
20	Missouri	5/9/2022	11/28/2025		21,675,015		(48,086	)		21,626,929		5.4	%		-	11% Cash, 2% PIK	P&I	14.7%
21	Illinois	7/1/2022	7/29/2026		6,453,187		(29,315	)		6,423,872		1.6	%		-	P+7% Cash, 2% PIK (9)	P&I	23.3%
23	Arizona	3/27/2023	3/31/2026		1,560,000		(16,591	)		1,543,409		0.4	%		-	P+7.5% Cash (12)	P&I	18.7%
24	Oregon	3/31/2023	9/27/2026		520,000		-			520,000		0.1	%		-	P+10.5% Cash (7)	P&I	21.7%
25	New York	8/1/2023	6/29/2036		24,337,297		-			24,337,297		6.1	%		-	15% Cash	P&I	16.6%
27	Nebraska	8/15/2023	6/30/2027		17,400,000		-			17,400,000		4.4	%		-	P+6.5% Cash (18)	P&I	15.7%
29	Illinois	10/11/2023	10/9/2026		1,920,477		-			1,920,477		0.5	%		-	11.4% Cash, 1.5% PIK	I/O	14.7%
30	Missouri, Arizona	12/19/2023	12/31/2026		18,400,000		(122,131	)		18,277,869		4.6	%		-	P+7.75% Cash (13)	I/O	18.7%
31	California, Illinois	5/3/2023	5/3/2026		6,680,000		-			6,680,000		1.7	%		-	P+8.75% Cash (10)	P&I	18.3%
32	Nevada	4/15/2024	8/15/2027		5,900,000		(25,351	)		5,874,649		1.5	%		-	P+6.5% Cash (12)	P&I	16.1%
33	Minnesota	5/20/2024	5/28/2027		1,080,000		(4,286	)		1,075,714		0.3	%		-	12% Cash (14)	I/O	12.9%
34	Arizona	6/17/2024	5/29/2026		10,000,000		-			10,000,000		2.5	%		-	11.91% Cash	I/O	12.8%
35	California	8/23/2024	8/23/2027		24,438,420		-			24,438,420		6.1	%		-	12% Cash, 3% PIK	P&I	16.3%
36	Illinois	10/28/2024	1/1/2027		25,900,000		(107,202	)		25,792,798		6.5	%		1,700,000	P+6.25% Cash (10)	I/O	15.4%
37	Various	11/26/2024	11/24/2028		20,069,535		(365,730	)		19,703,805		4.9	%		10,000,000	12% Cash, 1% PIK (19)	I/O	15.2%
38	Various	12/13/2024	7/14/2025		2,905,000		(24,676	)		2,880,324		0.7	%		2,095,000	10% Cash (19)	I/O	16.1%
40	Various	3/28/2025	7/28/2028		233,333		(23,276	)		210,057		0.1	%		-	SOFR +10.25% Cash (6)	I/O	19.4%
41	Ohio	3/1/2025	3/13/2027		250,000		(7,366	)		242,634		0.1	%		-	14.5% Cash	I/O	16.4%
			Total	$	401,511,816	$	(2,056,337	)	$	399,455,479		100	%	$	13,795,000		Wtd Average	16.9%

(1)Loan numbering in the table above is maintained from origination for purposes of comparability and may not be sequential due to maturities, payoffs, or refinancings.

(2)Certain loans are subject to contractual extension options as stipulated in the loan agreement. Actual maturities may differ from contractual maturities stated herein and certain borrowers may have the right to prepay with or without a contractual prepayment penalty. The Company may also extend contractual maturities and amend other terms of the loans in connection with loan modifications.

(3)"P" = prime rate; "SOFR"= Secured Overnight Financing Rate. "P" and "SOFR" represent floating rate loans that pay interest at the designed benchmark rate plus an applicable spread; "PIK" = paid-in-kind interest.

(4)P&I = principal and interest. I/O = interest only. P&I loans may include interest only periods for a portion of the loan term. The frequency of loan payments may be monthly or quarterly as required by the respective credit agreement governing such loan.

(5)Estimated YTM, calculated on a weighted average principal basis, includes a variety of fees and features that affect the total yield, which may include, but is not limited to, OID, exit fees, prepayment fees, unused fees and contingent features. OID is recognized as a discount to the funded loan principal and is accreted to income over the term of the loan. The estimated YTM calculations require management to make estimates and assumptions, including, but not limited to, the timing and amounts of loan draws on delayed draw loans, the timing and collectability of exit fees, the probability and timing of prepayments and the probability of contingent features occurring. For example, certain credit agreements contain provisions pursuant to which certain PIK interest rates and fees earned by us under such credit agreements will decrease upon the satisfaction of certain specified criteria which we believe may improve the risk profile of the applicable borrower. To be conservative, we have not assumed any prepayment penalties or early payoffs in our estimated YTM calculation. Estimated YTM is based on current management estimates and assumptions, which may change. Actual results could differ from those estimates and assumptions.

(6)This Loan is subject to a SOFR floor of 4.00%

(7)This Loan is subject to a prime rate floor of 5.50%

(8)This Loan is subject to a prime rate floor of 6.25%

(9)This Loan is subject to a prime rate floor of 7.00%

(10)This Loan is subject to a prime rate floor of 7.50%

(11)This Loan is subject to a prime rate floor of 7.75%

(12)This Loan is subject to a prime rate floor of 8.00%

(13)This Loan is subject to a prime rate floor of 8.50%

(14)The borrowers of Loan #3 and Loan #33 are affiliates of Vireo Growth, Inc., a related party. The aggregate principal balance of these loans is included on the consolidated balance sheet as loans held for investment - related party. See Note 8 for further details.

(15)The aggregate principal balance outstanding of Loan #3 is comprised of two tranches. The first tranche has a principal balance of approximately $16.9 million, bears a floating interest rate of prime plus 10.375% cash and 2.75% PIK and has a maturity date of January 29, 2027. The second tranche has a principal balance of approximately $4.4 million, bears an interest rate of 15.00% cash and 2.00% PIK, and a maturity date of May 29, 2026. The statistics presented reflect the weighted average of the rate terms under both tranches for the total aggregate loan principal, however only the maturity date for the first tranche has been presented in the table above.

(16)Loan #9, is comprised of two tranches, a $14.5 million first lien judgment loan (the "Judgment Loan") and a $2.0 million second lien term loan (the "Term Loan"). The Judgment Loan and the Term Loan bear interest at a rate of 9.0%. The Judgment Loan has no contractual maturity and will remain outstanding until paid by the obligor and the Term Loan has a maturity of March 31, 2028. For comparability to previously issued financial statements, management will continue to reference the Judgment Loan and the Term Loan, collectively, as Loan #9, and the maturity date presented represents the maturity date of the Term Loan. See Note 8 for additional information.

(17)An affiliate under common control holds a controlling equity investment in this portfolio company (Note 8).

(18)This loan has floating grid pricing based on the Prime Rate plus a spread of 5.00% to 8.75% based on monthly annualized EBITDA performance. As of March 31, 2025, applied interest rate is Prime Rate + 6.50%.

(19)Loan #37 and Loan #38 bear unused fees on the unfunded commitment of 0.75% and 1.50% per annum, respectively.

Schedule of Presents Aging Analyses of Past Due Loans by Amortized Cost

The following table presents aging analyses of past due loans by amortized cost, excluding the CECL reserve, as of March 31, 2025 and December 31, 2024.

	As of March 31, 2025
	Current Loans (1)		31-60 Days Past Due		61-90 Days Past Due		90+ Days Past Due		Total Past Due		Total Loans		Non- Accrual(2)
Senior Term Loans	$	399,455,479	$	-	$	-	$	-	$	-	$	399,455,479	$	16,468,950
Total	$	399,455,479	$	-	$	-	$	-	$	-	$	399,455,479	$	16,468,950

	As of December 31, 2024
	Current Loans (1)		31-60 Days Past Due		61-90 Days Past Due		90+ Days Past Due (2)		Total Past Due		Total Loans		Non- Accrual(2)
Senior Term Loans	$	386,074,558	$	-	$	-	$	16,402,488	$	16,402,488	$	402,477,046	$	16,402,488
Total	$	386,074,558	$	-	$	-	$	16,402,488	$	16,402,488	$	402,477,046	$	16,402,488

(1)Loans 1-30 days past due are included in the current loans.

(2)On May 1, 2023, Loan #9 was placed on non-accrual status. On June 20, 2023, the Administrative Agent to Loan #9 issued an acceleration notice requesting immediate payment of all amounts outstanding and therefore is 90 days past due as of December 31, 2024. See Note 8 for further details.

Schedule of Risk Rating

Based on a 5-point scale, the Company’s loans are rated “1” through “5,” from less risk to greater risk, which ratings are defined as follows:

Rating	Definition
1	Very low risk
2	Low risk
3	Moderate/average risk
4	High risk/potential for loss: a loan that has a risk of realizing a principal loss
5	Impaired/loss likely: a loan that has a high risk of realizing principal loss, has incurred principal loss or an impairment has been recorded

Schedule of Carrying Value of Loans Held for Investment

As of March 31, 2025 and December 31, 2024, the carrying value, excluding the current expected credit loss reserve (the “CECL Reserve”), of the Company’s loans within each risk rating category by year of origination is as follows:

	As of March 31, 2025(1)
Risk Rating	2025		2024		2023		2022		2021		Total
1	$	-	$	1,075,713	$	520,000	$	21,626,930	$	-	$	23,222,643
2		1,040,870		64,835,378		63,479,052		64,691,470		23,545,865		217,592,635
3		242,634		34,737,436		-		72,373,346		29,701,304		137,054,720
4		-		10,000,000		-		-		11,585,481		21,585,481
5		-		-		-		-		-		-
Total	$	1,283,504	$	110,648,527	$	63,999,052	$	158,691,746	$	64,832,650	$	399,455,479

	As of December 31, 2024(1)
Risk Rating	2024		2023		2022		2021		Total
1		1,111,224	$	580,000	$	41,045,793	$	-	$	42,737,017
2		63,823,279		64,896,824		90,874,764		24,239,380		243,834,247
3		34,653,247		2,466,705		27,110,506		13,687,904		77,918,362
4		10,000,000		-		-		27,987,420		37,987,420
5		-		-		-		-		-
Total	$	109,587,750	$	67,943,529	$	159,031,063	$	65,914,704	$	402,477,046

(1)Amounts are presented by loan origination year with subsequent advances on delayed draw facilities shown in the initial year of origination.

Schedule of Real Estate Collateral Coverage

Real estate collateral coverage is also a significant credit quality indicator, and real estate collateral coverage, excluding the CECL Reserve, was as follows as of March 31, 2025 and December 31, 2024:

As of March 31, 2025(1)
	< 1.0x		1.0x – 1.25x		1.25x – 1.5x		1.50x – 1.75x		1.75x – 2.0x		> 2.0x		Total
Fixed-rate	$	66,475,847	$	40,907,370	$	43,844,431	$	9,567,657	$	-	$	1,920,475	$	162,715,780
Floating-rate		130,777,929		23,545,865		6,633,930		-		25,792,798		49,989,177		236,739,699
	$	197,253,776	$	64,453,235	$	50,478,361	$	9,567,657	$	25,792,798	$	51,909,652	$	399,455,479

As of December 31, 2024(1)
	< 1.0x		1.0x – 1.25x		1.25x – 1.5x		1.50x – 1.75x		1.75x – 2.0x		> 2.0x		Total
Fixed-rate	$	45,029,665	$	48,900,184	$	43,750,558	$	9,603,167	$	-	$	1,943,216	$	149,226,790
Floating-rate		155,364,941		16,402,488		6,549,135		—		24,885,063		50,048,629		253,250,256
	$	200,394,606	$	65,302,672	$	50,299,693	$	9,603,167	$	24,885,063	$	51,991,845	$	402,477,046

(1)Real estate collateral coverage is calculated based upon most recent third-party appraised values. The Company generally obtains new appraisal of all material real estate collateral at least once annually.

Summary of Geography Concentration of Loans Held for Investment

Geography concentration of our loans held for investment is also a significant credit quality indicator. As of March 31, 2025 and December 31, 2024, our borrowers have operations in the jurisdictions in the table below:

As of March 31, 2025						As of December 31, 2024
Jurisdiction	Outstanding Principal (1)		Percentage of Our Loan Portfolio			Jurisdiction	Outstanding Principal (1)		Percentage of Our Loan Portfolio
Illinois	$	61,370,819		15	%	Illinois	$	55,958,079		14	%
Ohio		61,364,965		15	%	Ohio		60,065,707		15	%
Florida		42,242,026		11	%	Florida		42,712,285		11	%
Pennsylvania		35,832,703		9	%	Pennsylvania		35,727,045		9	%
Missouri		32,082,102		8	%	Missouri		38,208,259		9	%
Michigan		32,069,178		8	%	Michigan		32,068,629		8	%
Arizona		28,914,569		7	%	Arizona		28,023,340		7	%
California		24,859,640		6	%	California		26,057,479		6	%
New York		24,337,297		6	%	New York		25,093,595		6	%
Maryland		22,049,473		5	%	Maryland		21,835,901		5	%
Nebraska		17,400,000		4	%	Nebraska		17,400,000		4	%
West Virginia		8,491,943		2	%	West Virginia		8,491,943		2	%
Nevada		5,900,000		1	%	Nevada		6,000,000		1	%
Texas		2,763,768		1	%	Texas		2,756,870		1	%
Minnesota		1,160,460		0	%	Minnesota		1,116,000		0	%
Oregon		672,873		0	%	Oregon		580,000		0	%
Massachusetts		—		-	%	Massachusetts		2,626,423		1	%
Total	$	401,511,816		100	%	Total	$	404,721,554		100	%

(1)The principal balance of the loans not secured by real estate collateral are included in the jurisdiction representing the borrower's principal place of business.

Schedule of Activity Related to the CECL Reserve for Outstanding Balances

Activity related to the CECL Reserve for outstanding balances and unfunded commitments on the Company’s loans held at carrying value and loans receivable at carrying value as of and for the three months ended March 31, 2025 and 2024 is presented in the table below.

	Funded			Unfunded			Total
Balance at December 31, 2024	$	4,346,869		$	45,572		$	4,392,441
Benefit for current expected credit losses		(1,072,811	)		(465	)		(1,073,276	)
Balance at March 31, 2025	$	3,274,058		$	45,107		$	3,319,165

	Funded		Unfunded			Total
Balance at December 31, 2023	$	4,972,647	$	3,092		$	4,975,739
Provision for current expected credit losses		383,371		(3,092	)		380,279
Balance at March 31, 2024	$	5,356,018	$	—		$	5,356,018