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SEGMENT REPORTING
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
SEGMENT REPORTING

10. SEGMENT REPORTING

 

The Company reports segment information based on the management approach which designates the internal reporting used by the Chief Operating Decision Maker, which is the Company’s Chief Executive Officer, for making decisions and assessing performance as the source of the Company’s reportable segments. The Company operates as a single reportable segment, originating, servicing, and managing short-term secured commercial loans to real estate investors. Management evaluates performance on a consolidated basis, as all loans share similar risk profiles, underwriting standards, and operational processes. Key performance metrics include interest income, origination fees, loan performance, and operating expenses. Significant expenses reviewed by management include interest and amortization of deferred financing costs and general and administrative expenses, which remain consistent across loan types. There are no material differences between segment-level information and consolidated financial reporting. The Company will continue to evaluate its segment reporting disclosures and make adjustments if there are material changes in business operations or financial reporting requirements.

 

Net income from the Company’s reportable segment is as follows:

 

   2025   2024   2025   2024 
   (Unaudited) 
   Three Months Ended June 30,   Six Months Ended June 30, 
   2025   2024   2025   2024 
Lending revenue:  $2,355,236   $2,443,215   $4,628,949   $5,016,293 
Less:                    
Interest expense   484,013    580,993    913,142    1,249,628 
Amortization of deferred financing costs   22,237    22,237    44,473    44,191 
Referral fees   1,523    500    1,667    1,000 
General and administrative expenses   437,785    434,282    891,355    844,560 
Income tax expense   1,210    650    1,210    650 
Other income   (4,500)   (4,500)   (9,000)   (9,000)
Net income  $1,412,968   $1,409,053   $2,786,102   $2,885,264