Loan Receivable, net |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||
| Loans and Leases Receivable Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
| Loan Receivable, net | Loan Receivable, net Loan Receivable The Company funded a $5.0 million unsecured loan to C3 Industries (name formerly known as Bloom Medicinal) on June 10, 2022. The loan initially bore interest at a rate of 10.25% and is structured to increase annually in April by the product of 1.0225 times the interest rate in effect immediately prior to the anniversary date. The loan is interest only for the first four years and can be prepaid at any time without penalty. If full principal payment on the loan is not made on June 30, 2026, the loan will begin amortizing principal and interest over the next five years, with a final maturity of June 30, 2031. The loan is cross defaulted with their lease agreement with the Company. As of March 31, 2025 and December 31, 2024, the loan interest rate was 10.72%, and the aggregate principal amount outstanding on the unsecured loan receivable as of March 31, 2025 and December 31, 2024, was $5.0 million. CECL Reserve The Company recorded a provision for current expected credit loss on the $5.0 million unsecured loan (discussed above). Estimating the CECL allowance for credit loss requires significant judgement. The Company used a discounted cash flow analysis to determine the expected credit loss. The following table presents the CECL reserve for the three months ended March 31, 2025 (in thousands):
(1) Included in "Loan Receivable, net" on the accompanying consolidated balance sheets.
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