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FAIR VALUE OF FINANCIAL INSTRUMENTS
6 Months Ended
Jun. 30, 2020
FAIR VALUE OF FINANCIAL INSTRUMENTS  
FAIR VALUE OF FINANCIAL INSTRUMENTS

NOTE 9. FAIR VALUE OF FINANCIAL INSTRUMENTS

The following table presents the carrying value and estimated fair value of the Company’s financial instruments at June 30, 2020 and December 31, 2019:

June 30, 2020

December 31, 2019

    

Carrying Value

    

Estimated Fair Value

    

Carrying Value

    

Estimated Fair Value

Cash and Cash Equivalents - Level 1

$

10,701,531

$

10,701,531

$

6,474,637

$

6,474,637

Restricted Cash - Level 1

29,709,862

29,709,862

128,430,049

128,430,049

Commercial Loan Investments - Level 2

18,488,912

18,488,912

34,625,173

35,001,997

Long-Term Debt - Level 2

270,783,375

277,037,986

287,218,303

288,830,346

To determine estimated fair values of the financial instruments listed above, market rates of interest, which include credit assumptions, were used to discount contractual cash flows. The estimated fair values are not necessarily indicative of the amount the Company could realize on disposition of the financial instruments. The use of different market assumptions or estimation methodologies could have a material effect on the estimated fair value amounts.

The following table presents the fair value of assets (liabilities) measured on a recurring basis by Level as of June 30, 2020:

Fair Value at Reporting Date Using

6/30/2020

    

Quoted Prices in Active Markets for Identical Assets (Level 1)

    

Significant Other Observable Inputs (Level 2)

    

Significant Unobservable Inputs (Level 3)

Cash Flow Hedge - Interest Rate Swap - Wells Fargo

$

(217,034)

    

$

    

$

(217,034)

    

$

Cash Flow Hedge - Interest Rate Swap - BMO

$

(2,174,495)

    

$

    

$

(2,174,495)

    

$

Investment Securities

$

33,164,611

    

$

33,164,611

    

$

    

$

The following table presents the fair value of assets measured on a recurring basis by Level as of December 31, 2019:

Fair Value at Reporting Date Using

    

12/31/2019

    

Quoted Prices in Active Markets for Identical Assets (Level 1)

    

Significant Other Observable Inputs (Level 2)

    

Significant Unobservable Inputs (Level 3)

Cash Flow Hedge - Interest Rate Swap - Wells Fargo

    

$

99,021

    

$

    

$

99,021

    

$

Investment Securities

    

$

38,814,425

    

$

38,814,425

    

$

    

$