Loans Held For Investment, Net (Tables)

3 Months Ended

Mar. 31, 2022

Loans Held For Investment Net [Abstract]

Schedule of loans held for investment

	As of March 31, 2022
	Outstanding Principal (1)		Original Issue Discount			Carrying Value (1)			Weighted Average Remaining Life (Years)(2)
Senior Term Loans	$	282,708,732	$	(3,881,818	)	$	278,826,914			2.4
Total loans held at carrying value		282,708,732		(3,881,818	)		278,826,914			2.4
Allowance for credit losses		N/A		N/A			(182,838	)
Total loans held at carrying value, net	$	282,708,732	$	(3,881,818	)	$	278,644,076

(1) The difference between the Carrying Value and the Outstanding Principal amount of the loans consists of unaccreted original issue discount and loan origination costs

(2) Weighted average remaining life is calculated based on the carrying value of the loans as of March 31, 2022

	As of December 31, 2021
	Outstanding Principal (1)		Original Issue Discount			Carrying Value (1)			Weighted Average Remaining Life (Years)(2)
Senior Term Loans	$	200,632,056	$	(3,647,490	)	$	196,984,566			2.2
Total loans held at carrying value		200,632,056		(3,647,490	)		196,984,566			2.2
Allowance for credit losses		N/A		N/A			(134,542	)
Total loans held at carrying value, net	$	200,632,056	$	(3,647,490	)	$	196,850,024

(1) The difference between the Carrying Value and the Outstanding Principal amount of the loans consists of unaccreted original issue discount and loan origination costs

(2) Weighted average remaining life is calculated based on the carrying value of the loans as of December 31, 2021

Schedule of changes in loans held at carrying value

	Principal			Original Issue Discount			Allowance for Credit Losses			Carrying Value
Balance at December 31, 2021	$	200,632,056		$	(3,647,490	)	$	(134,542	)	$	196,850,024
New fundings		86,725,308			(1,128,415	)		-			85,596,893
Principal repayment of loans		(5,619,201	)		-			-			(5,619,201	)
Accretion of original issue discount		-			894,087			-			894,087
PIK Interest		970,569			-			-			970,569
Provision for credit losses		-			-			(48,296	)		(48,296	)
Balance at March 31, 2022	$	282,708,732		$	(3,881,818	)	$	(182,838	)	$	278,644,076

Schedule of loans held at carrying value portfolio based on information

Loan		Location	Outstanding Principal(1)		Original Issue Premium/(Discount)			Carrying Value(1)			Contractual Interest Rate(4)	Maturity Date(2)		Payment Terms(3)
	1	Michigan		537,500		19,308			556,808		15.00%		12/31/2022		P&I
	2	Various		30,000,000		(517,906	)		29,482,094		10.07%(6)		5/30/2023		I/O
	3	Pennsylvania		6,957,500		(239,669	)		6,717,831		P + 11.00%(5)		1/31/2025		P&I
	4	Michigan		29,333,311		(149,336	)		29,183,975		P + 6.65%(5) Cash, 2.5% PIK		12/31/2024		P&I
	5	Various		19,321,082		(583,643	)		18,737,439		13.625% Cash, 2.75% PIK		3/31/2024		P&I
	6	Arizona		11,061,997		-			11,061,997		19.85%(7)		4/28/2023		P&I
	7	Massachusetts		1,500,000		-			1,500,000		P + 12.25%(5)		4/28/2023		P&I
	8	Pennsylvania		13,235,127		-			13,235,127		P + 10.75%(5) Cash, 4% PIK(8)		5/31/2025		P&I
	9	Michigan		4,500,000		(7,560	)		4,492,440		P + 9.00%(5)		2/20/2024		P&I
	10	Various		19,388,944		(238,164	)		19,150,780		13% Cash, 1% PIK		8/30/2024		P&I
	11	West Virginia		9,599,451		(153,282	)		9,446,169		P + 9.25%(5) Cash, 2% PIK		9/1/2024		P&I
	12	Pennsylvania		15,263,207		-			15,263,207		P + 10.75%(5) Cash, 3% PIK		6/30/2024		P&I
	13	Michigan		392,009		-			392,009		11.00%		9/30/2024		P&I
	14	Maryland		20,203,076		(500,365	)		19,702,711		P + 8.75%(5) Cash, 2% PIK		9/30/2024		I/O
	15	Various		12,000,000		(260,570	)		11,739,430		13.00%		10/31/2024		P&I
	16	Michigan		10,600,000		(89,946	)		10,510,054		P + 7.00%(5)		11/22/2022		I/O
	17	Various		5,000,000		-			5,000,000		15% Cash, 2.5% PIK		12/27/2026		P&I
	18	Michigan		3,646,200		(78,658	)		3,567,542		10.50% Cash, 1% to 5% PIK(9)		12/29/2023		I/O
	19	Various		7,500,000		(68,778	)		7,431,222		P + 9.25%(5)		12/31/2024		I/O
	20	Florida		15,000,000		(357,104	)		14,642,896		11.00%		1/31/2025		P&I
	21	Ohio		30,140,161		(570,026	)		29,570,135		P + 8.25%(5) Cash, 3% PIK		2/28/2025		P&I
	22	Florida		17,529,167		(86,119	)		17,443,048		11.00% Cash, 3% PIK		8/29/2025		P&I
	Current expected credit loss reserve			-		-			(182,838	)
	Total loans held at carry value			282,708,732		(3,881,818	)		278,644,076

(1)	The difference between the Carrying Value and the Outstanding Principal amount of the loans consists of unaccreted purchase discount, deferred loan fees and loan origination costs
(2)	Certain loans are subject to contractual extension options and may be subject to performance based or other conditions as stipulated in the loan agreement. Actual maturities may differ from contractual maturities stated herein as certain borrowers may have the right to prepay with or without paying a prepayment penalty. The Company may also extend contractual maturities and amend other terms of the loans in connection with loan modifications.
(3)	P/I = principal and interest. I/O = interest only.  P/I loans may include interest only periods for a portion of the loan term.
(4)	P = prime rate and depicts floating rate loans that pay interest at the prime rate plus a specific percentage; “PIK” = paid in kind interest.
(5)	This loan is subject to a 3.25% prime rate floor.
(6)	The aggregate loan commitment to Loan #2 includes a $4.005 million initial advance which has an interest rate of 15.25%, a second advance of $15.995 million which has an interest rate of 9.75%, and a third advance of $10.0 million which has an interest rate of 8.5%. The statistics presented reflect the weighted average of the terms under all advances for the total aggregate loan commitment.

(7)	The aggregate loan commitment to Loan #6 includes a $8.9 million initial commitment which has a base interest rate of 15.25% and PIK interest rate of 2%, and a second commitment of $2.0 million which has an interest rate of 39%. The statistics presented reflect the weighted average of the terms under both advances for the total aggregate loan commitment.
(8)	Subject to adjustment not below 2% if borrower receives at least two consecutive quarters of positive cash flow after the closing date.

(9) PIK is variable with an initial rate of five percent (5.00%) per annum, until borrower’s delivery of audited financial statements for the Fiscal Year ended December 31, 2021, at which time the PIK interest rate shall equal a rate of one percent (1.00%) if EBITDA is greater than $6,000,000; three percent (3.00%) if EBITDA is greater than $4,000,000 and less than or equal to $6,000,000; or will remain at five percent (5.00%) if EBITDA is less than $4,000,000.

Schedule of risk rating

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, 2022
Risk Rating	2022		2021		2020		2019		Total
1		-		122,035,698		29,482,094		556,808		152,074,600
2		90,840,054		29,194,429		6,717,831		-		126,752,314
3		-		-		-		-		-
4		-		-		-		-		-
5		-		-		-		-		-
Total		90,840,054		151,230,127		36,199,925		556,808		278,826,914

	As of December 31, 2021
Risk Rating	2021		2020		2019		Total
1	$	135,076,307	$	32,242,114	$	590,384	$	167,908,805
2		29,075,761		-		-		29,075,761
3		-		-		-		-
4		-		-		-		-
5		-		-		-		-
Total		164,152,068		32,242,114		590,384		196,984,566

Schedule of carrying value of loans held for investment

As of March 31, 2022
Real Estate Collateral Coverage
	< 1.0x		1.0x - 1.25x		1.25x - 1.5x		1.50x - 1.75x		1.75x - 2.0x		> 2.0x		Total
Fixed-rate	$	5,000,000	$	-	$	17,443,048	$	-	$	-	$	79,531,559	$	101,974,607
Floating-rate		15,649,053		15,263,207		48,307,574		39,658,934		24,297,124		33,676,415		176,852,307
	$	20,649,053	$	15,263,207	$	65,750,622	$	39,658,934	$	24,297,124	$	113,207,974	$	278,826,914

As of December 31, 2021 Real Estate Collateral Coverage
	< 1.0x		1.0x - 1.25x		1.25x - 1.5x		1.50x - 1.75x		1.75x - 2.0x		> 2.0x		Total
Fixed-rate	$	7,017,793	$	-	$	35,836,099	$	3,086,298	$	-	$	45,373,778	$	91,313,968
Floating-rate		8,925,068		18,022,518		-		30,029,953		32,377,087		16,315,972		105,670,598
	$	15,942,861	$	18,022,518	$	35,836,099	$	33,116,251	$	32,377,087	$	61,689,750	$	196,984,566

Schedule of Activity related to the CECL Reserve for outstanding balances

	Outstanding(1)		Unfunded(2)		Total
Balance at December 31, 2021	$	134,542	$	13,407	$	147,949
Provision for current expected credit losses		48,296		3,047		51,343
Balance at March 31, 2022	$	182,838	$	16,454	$	199,292

(1) As of March 31, 2022, the CECL Reserve related to outstanding balances on loans at carrying value is recorded within current expected credit loss reserve in the Company’s consolidated balance sheets.

(2) As of March 31, 2022, the CECL Reserve related to unfunded commitments on loans at carrying value is recorded within accounts payable and accrued liabilities in the Company’s consolidated balance sheets.