v3.25.2
Fair Value Measurements (Tables)
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
Schedule of Fair Value Measurements of Marketable Securities, by Major Class
The following tables present fair value measurements of marketable securities and derivatives, by major class according to the fair value hierarchy as of:
June 30, 2025
 Fair Value Measurements
 Level 1Level 2Level 3Total
Money market fund (1)
$2,410,343 $— $— $2,410,343 
Available-for-sale debt securities1,191,299 — — 1,191,299 
Derivative - interest rate cap (2)
— — — — 
Total$3,601,642 $— $— $3,601,642 
December 31, 2024
 Fair Value Measurements
 Level 1Level 2Level 3Total
Money market fund (1)
$2,360,936 $— $— $2,360,936 
Available-for-sale debt securities963,178 — — 963,178 
Derivative - interest rate cap (2)
— 75 — 75 
Total$3,324,114 $75 $— $3,324,189 
______________
(1)Amount is included in cash and cash equivalents on the consolidated balance sheets.
(2)Amount is included in other assets on the consolidated balance sheets.
Schedule of Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation
The following table presents the activities of the securities and derivatives:
Six Months Ended June 30,
20252024
Available-For-Sale Debt SecuritiesDerivativesAvailable-For-Sale Debt SecuritiesTrading Equity SecuritiesDerivatives
Beginning balance$963,178 $75 $1,148,653 $3,813,226 $83,807 
Proceeds from sale — — — (3,551,098)— 
Reclassification of net realized loss on investments
   into earnings		— — — (446,009)— 
Unrealized gain (loss) on investments228,121 (75)(19,390)183,881 (5,311)
Ending balance$1,191,299 $— $1,129,263 $— $78,496 
Schedule of Fair Value Measurements, Nonrecurring
The following table presents the carrying value, which represents the amortized cost of loan, net of applicable allowance for credit losses, and estimated fair value of the Company’s financial instruments that are not carried at fair value on the consolidated balance sheets as of:
June 30, 2025December 31, 2024
LevelPrincipal AmountCarrying ValueFair ValuePrincipal AmountCarrying ValueFair Value
Assets:
Loans
Loans held for investment3$222,393,773 $175,053,810 $174,927,245 $275,802,476 $233,571,416 $234,665,528 
Loans held for investment
   acquired through
   participation		323,104,416 23,116,267 23,343,044 41,452,547 41,077,729 41,871,690 
Total loans245,498,189 198,170,077 198,270,289 317,255,023 274,649,145 276,537,218 
Equity securities without readily
  determinable fair value (1)
32,000,000 2,004,168 2,000,000 2,000,000 2,002,353 2,000,000 
Total assets$247,498,189 $200,174,245 $200,270,289 $319,255,023 $276,651,498 $278,537,218 
Liabilities:
Unsecured notes payable1$123,500,000 $121,526,268 $99,748,800 $123,500,000 $120,424,100 $88,764,850 
Secured financing agreements3140,323,290 138,649,716 138,331,034 207,593,942 205,718,782 206,731,436 
Obligations under participation
   agreements		319,606,804 19,799,722 19,799,723 18,000,000 18,177,106 18,254,853 
Total liabilities$283,430,094 $279,975,706 $257,879,557 $349,093,942 $344,319,988 $313,751,139 
_____________
(1)Amount is included in Other assets on the consolidated balance sheets.
The following table presents information about assets for which the Company recorded an impairment charge and that were measured at fair value on a non-recurring basis for the three and six months ended June 30, 2025:
Three Months Ended June 30, 2025Six Months Ended June 30, 2025
LevelFair ValueImpairment ChargeFair ValueImpairment Charge
Real estate assets held for sale
Real estate and intangibles3$27,037,500 $3,399,684 $27,037,500 $3,399,684 
$3,399,684 $3,399,684 
Schedule of Fair Value Measurement Inputs and Valuation Techniques
The following tables summarize the valuation techniques and significant unobservable inputs used by the Company to value the Level 3 loans as of June 30, 2025 and December 31, 2024. The tables are not intended to be all-inclusive, but instead identify the significant unobservable inputs relevant to the determination of fair values.
Fair Value at June 30, 2025
Primary Valuation TechniqueUnobservable InputsJune 30, 2025
Asset CategoryMinimumMaximumWeighted Average
Assets:
Loans held for investment, net$174,927,245 Discounted cash flowDiscount rate6.75 %19.32 %11.02 %
Discounted cash flowTerminal capitalization rate5.75 %5.75 %5.75 %
Loans held for investment acquired through
   participation, net		23,343,044 Discounted cash flowDiscount rate17.02 %17.02 %17.02 %
Equity securities (1)
2,000,000 N/AN/AN/AN/AN/A
Total Level 3 Assets$200,270,289 
Liabilities:
Secured financing agreements$138,331,034 Discounted cash flowDiscount rate6.86 %11.28 %8.29 %
Obligation under participation agreement19,799,723 Discounted cash flowDiscount rate19.32 %19.32 %19.32 %
Total Level 3 Liabilities$158,130,757 
Fair Value at December 31, 2024
Primary Valuation TechniqueUnobservable InputsDecember 31, 2024
Asset CategoryMinimumMaximumWeighted Average
Assets:
Loans held for investment, net$234,665,528 Discounted cash flowDiscount rate6.75 %16.48 %9.63 %
Discounted cash flowTerminal capitalization rate5.75 %5.75 %5.75 %
Loans held for investment acquired through
   participation, net		41,871,690 Discounted cash flowDiscount rate15.07 %17.03 %16.65 %
Equity securities (1)
2,000,000 N/AN/AN/AN/AN/A
Total Level 3 Assets$278,537,218 
Liabilities:
Secured financing agreements$206,731,436 Discounted cash flowDiscount rate6.33 %11.28 %8.30 %
Obligation under participation agreement18,254,853 Discounted cash flowDiscount rate14.78 %14.78 %14.78 %
Total Level 3 Liabilities$224,986,289 
_______________
(1)Fair market value is based on purchase price.