| Schedule of Financing Receivable, Allowance for Credit Loss |
Activity related to the CECL Reserve for outstanding balances and unfunded commitments on the Company’s loans held at carrying value and loan receivable held at carrying value as of and for the three and six months ended June 30, 2025 was as follows: | | | | | | | | | | | | | | | | | | | Outstanding (1) | | Unfunded (2) | | Total | | Balance at March 31, 2025 | $ | 29,744,212 | | | $ | 142,743 | | | $ | 29,886,955 | | | Provision for (reversal of) current expected credit losses | 15,867,183 | | | (15,617) | | | 15,851,566 | | | Write-offs | (1,777,246) | | | — | | | (1,777,246) | | | Recoveries | — | | | — | | | — | | | Balance at June 30, 2025 | $ | 43,834,149 | | | $ | 127,126 | | | $ | 43,961,275 | | | | | | | | | Outstanding (1) | | Unfunded (2) | | Total | | Balance at December 31, 2024 | $ | 30,419,677 | | | $ | 166,702 | | | $ | 30,586,379 | | | Provision for (reversal of) current expected credit losses | 15,191,718 | | | (39,576) | | | 15,152,142 | | | Write-offs | (1,777,246) | | | — | | | (1,777,246) | | | Recoveries | — | | | — | | | — | | | Balance at June 30, 2025 | $ | 43,834,149 | | | $ | 127,126 | | | $ | 43,961,275 | |
(1)As of June 30, 2025 and December 31, 2024, the CECL Reserve related to outstanding balances on loans held at carrying value and loan receivable held at carrying value is recorded within current expected credit loss reserve in the Company’s consolidated balance sheets. (2)As of June 30, 2025 and December 31, 2024, the CECL Reserve related to unfunded commitments on loans held at carrying value is recorded within current expected credit loss reserve as a liability in the Company’s consolidated balance sheets.
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| Schedule of Financing Receivable Credit Quality Indicators |
Based on a 5-point scale, the Company’s loans are rated “1” through “5,” from less risk to greater risk, which ratings are defined as follows: | | | | | | | Rating | Definition | | 1 | Very Low Risk — Materially exceeds performance metrics included in original or current credit underwriting and business plan | | 2 | Low Risk — Collateral and business performance exceeds substantially all performance metrics included in original or current credit underwriting and business plan | | 3 | Medium Risk — Collateral and business performance meets, or is on track to meet underwriting expectations; business plan is met or can reasonably be achieved | | 4 | High Risk/ Potential for Loss — Collateral performance falls short of underwriting, material differences from business plans, defaults may exist, or may soon exist absent material improvement. Risk of recovery of interest exists | | 5 | Impaired/ Loss Likely — Performance is significantly worse than underwriting with major variances from business plan observed. Loan covenants or financial milestones have been breached; exit from loan or refinancing is uncertain. Full recovery of principal is unlikely |
As of June 30, 2025, the carrying value, excluding the CECL Reserve, of the Company’s loans held at carrying value and loan receivable held at carrying value within each risk rating by year of origination is as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Risk Rating: | 2025 | | 2024 | | 2023 | | 2022 | | 2021 | | 2020 | | Total | | 1 | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | 2 | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 3 | 26,558,630 | | | 91,843,994 | | | 24,870,326 | | | 30,099,620 | | | 23,326,435 | | | — | | | 196,699,005 | | | 4 | — | | | 15,298,742 | | | — | | | — | | | — | | | — | | | 15,298,742 | | | 5 | — | | | — | | | — | | | 11,513,143 | | | 77,435,318 | | | — | | | 88,948,461 | | | Total | $ | 26,558,630 | | | $ | 107,142,736 | | | $ | 24,870,326 | | | $ | 41,612,763 | | | $ | 100,761,753 | | | $ | — | | | $ | 300,946,208 | | | | | | | | | | | | | | | | | Gross write-offs | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | (1,777,246) | | | $ | (1,777,246) | |
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