Fair Value Measurements

3 Months Ended

Mar. 31, 2026

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

12. FAIR VALUE MEASUREMENTS

GAAP requires disclosure of fair value information about financial and non-financial assets and liabilities, whether or not recognized in the financial statements, for which it is practical to estimate the value. In cases where quoted market prices are not available, fair values are based upon the application of discount rates to estimated future cash flows using market yields, or other valuation methodologies. Any changes to the valuation methodology will be reviewed by the Company’s management to ensure the changes are appropriate. The methods used may produce a fair value calculation that is not indicative of net realizable value or reflective of future fair values. Furthermore, while the Company anticipates that the valuation methods are appropriate and consistent with other market participants, the use of different methodologies, or assumptions, to determine the fair value of certain financial and non-financial assets and liabilities could result in a different estimate of fair value at the reporting date. The Company uses inputs that are current as of the measurement date, which may fall within periods of market dislocation, during which price transparency may be reduced.

Financial Assets and Liabilities Not Measured at Fair Value

As of March 31, 2026 and December 31, 2025, the carrying values and fair values of the Company’s financial assets and liabilities recorded at amortized cost are as follows:

			As of March 31, 2026				As of December 31, 2025
	Level		Carrying  Value		Fair Value		Carrying Value		Fair Value
Financial assets:
Loans held for investment		3	$	409,237,486	$	403,884,846	$	408,955,567	$	407,364,639
Cash and cash equivalents		1		27,855,945		27,855,945		14,948,884		14,948,884
Interest receivable		2		4,907,288		4,907,288		4,009,800		4,009,800
Other receivables and assets, net		2		2,562,700		2,562,700		874,245		874,245
Related party receivables		2		65,776		65,776		1,189,937		1,189,937
Financial liabilities:
Revolving loan		2		67,050,000		66,828,042		49,100,000		48,853,380
Notes payable, net		2		49,393,248		49,421,925		49,334,459		49,383,677
Dividend payable		2		11,347,028		11,347,028		11,157,220		11,157,220
Related party payables		2		1,453,942		1,453,942		2,214,920		2,214,920
Management and incentive fees payable		2		1,719,495		1,719,495		3,098,576		3,098,576
Interest payable		2		310,106		310,106		1,348,334		1,348,334
Accounts payable and other liabilities		2		1,242,135		1,242,135		834,977		834,977
Interest reserve		2		10,000		10,000		12,686		12,686

Our loans are generally held for investment and are substantially secured by real estate, equipment, licenses and other assets of the borrowers to the extent permitted by the applicable laws and the regulations governing such borrowers. The aggregate fair value of the Company’s loans held for investment was approximately $403.9 million and $407.4 million, with gross unrecognized holding losses of $5.4 million and $1.6 million as of March 31, 2026 and December 31, 2025, respectively. The fair values, which are classified as Level 3 in the fair value hierarchy, are estimated using discounted cash flow models based on current market inputs for similar types of arrangements. The primary sensitivity in these models is based on the selection of appropriate discount rates. Fluctuations in these assumptions could result in different estimates of fair value.