9. Borrowings

The following table displays our borrowings:

Schedule of Borrowings  

Schedule of Maturity of Debt 

Secured Borrowings

Loan Purchase and Sale Agreements

The Company has two purchase and sale agreements where we are the seller of portions of loans we originate. The two purchasers are Builder Finance, Inc. (“Builder Finance”) and S.K. Funding, LLC (“S.K. Funding”). Generally, the purchasers buy between 50% and 85% of each loan sold. They receive interest rates ranging from 8% to our interest rate charged to the borrower. The purchasers generally do not receive any of the loan fees we charge. We have the right to call some of the loans sold, with some restrictions. Once sold, the purchaser must fund their portion of the loans purchased. We service the loans. Also, there are limited put options in some cases, whereby the purchaser can cause us to repurchase a loan. The loan purchase and sale agreements are recorded as secured borrowings. However, an amendment to S.K. Funding’s agreement allowes the Company to sell participating interest in loans which is explained further below.

As of December 31, 2025 and 2024, the there is not a limit of maximum principal on the Builder Finance line and the principal was $1,459 and $4,418, respectively. The interest rate on the borrowings was 8.99% and 11.00% as of December 31, 2025 and 2024, respectively. The agreement has a term of 12 months and renews automatically for an additional 12 months unless either party provides written notice of intent not to renew at least six months prior to the end of the term. During the periods ending December 31, 2025 and 2024, interest expense was $323 and $704, respectively.

As of December 31, 2025 and 2024, the maximum principal on the S.K. Funding line was $6,500 for both period end dates. Borrowings up to $1,400 over the principal amount may be unsecured. There were $0 of unsecured borrowings as of both December 31, 2025 and 2024. The interest rate on the borrowings was 10.00% and 9.50% as of December 31, 2025 and 2024, respectively. The agreement has a term of 12 months and renews automatically for an additional 12 months unless either party provides written notice of intent not to renew at least six months prior to the end of the term. Additionally, the Company executed an amendment to the agreement with S.K. Funding that allowed the Company to sell participating interests in loans. The balance of the portion sold on these loans is removed from the balance sheet of the Company and interest on the portion sold is not reflected in our statement of operations. As of December 31, 2025 and 2024, the loan receivable principal balance sold under this agreement was $1,400.

Lines of Credit

Lines of Credit with Mr. Wallach and His Affiliates

As of December 31, 2025 and 2024, the Company had $26 and $743 borrowed against its lines of credit from affiliates, respectively, which have a total limit of $2,500 and $2,500 as of December 31, 2025 and 2024, respectively. During the year ended December 31, 2025, the Company paid $400 towards the balance of a line of credit with Daniel M. Wallach (our Chief Executive Officer and Chairman of the Board of Managers). As of December 31, 2025 and 2024, interest expense for lines of credit from affiliates was $45 and $51, respectively.

Line of Credit with Shuman

During July 2017, we entered into a line of credit agreement (the “Shuman LOC Agreement”) with Steven K. Shuman, which is now held by Cindy K. Shuman. Pursuant to the Shuman LOC Agreement, Shuman provides us with a revolving line of credit (the “Shuman LOC”) with the following terms:

As of December 31, 2025 and 2024, the outstanding amount pursuant to the Shuman LOC was $125. Interest expense was $13 for both years ended December 31, 2025 and 2024, respectively.

Line of Credit with Judith Swanson

During December 2021, the Swanson Line of Credit (“Swanson LOC”) was assigned to Judith Swanson (“Judith Swanson LOC”), as trustee of a trust. Pursuant to the Swanson Modification Agreement, the Judith Swanson LOC provides us with a revolving line of credit with the following terms:

The Judith Swanson LOC was fully borrowed on the secured and unsecured portion of the line of credit as of December 31, 2025 and 2024. In addition, the secured balance on the Judith Swanson LOC was $6,407 and $6,000, as of December 31, 2025 and 2024, respectively. Interest expense was $651 and $640 for the years December 31, 2025 and 2024, respectively.

United Lines of Credit

In January 2025, we entered into a revolving line of credit with United Bank for $2,275, maturing in January 2027. The interest rate on this line of credit is 5.5%. As of December 31, 2025, the amount due on this line of credit was $2,275. The line of credit is collateralized by an investment in certificates of deposit totaling $2,275 as of December 31, 2025.

In January 2025, we entered into a revolving line of credit with United Bank for $725, with an expiration date of January 2040. The interest rate on this line of credit is 7.5%. There were no amounts outstanding pursuant to this revolving line of credit as of December 31, 2025. The Company’s office in Jacksonville, FL, is used as collateral for this line of credit.

Liberty Savings Bank Line of Credit

In December 2025, we entered into a revolving line of credit with Liberty Savings Bank for $5,000 and can be terminated on 90 days written notice. The interest rate on this line of credit varies and is indexed to the current Prime rate plus 0.5%. As of December 31, 2025, there were no amounts borrowed under this line of credit. The line of credit will be secured with assignments of certain notes and mortgages when drawn upon.

Other Lines of Credit

During 2020 and 2019, we entered into one and four line of credit agreements, respectively (the “Other LOC Agreements”). Pursuant to the Other LOC Agreements, the lenders provide us with revolving lines of credit with the following terms:

The total balance of the Other LOC Agreements was $1,666 and $2,965 as of December 31, 2025 and 2024, respectively. Interest expense was $246 and $296 for the year ended December 31, 2025 and 2024, respectively.

Hanna Holdings, Inc. Loan

This loan was debt acquired in the 339 acquisition which 339 used the loan to originally purchase the property.

During the year ended December 31, 2025, the Company paid off the loan with Hanna Holdings Inc. through the sale of 339 land parcels. As of December 31, 2024, the secured note payable to Hanna Holdings, Inc., was $350.

Secured Borrowings Secured by Loan Assets

As of December 31, 2025, the Company pledged $33,179 of loans as collateral on $16,156 of secured notes payable.

As of December 31, 2024, the Company pledged $32,614 of loans as collateral on $20,009 of secured notes payable.

Unsecured Borrowings

Unsecured Notes through the Public Offering (“Notes Program”)

The effective interest rate on borrowings through our Notes Program as of December 31, 2025 and 2024, was 8.90% and 10.08%, respectively.

We generally offer four durations at any given time, ranging from 12 to 48 months from the date of issuance. Our fourth public offering, which was declared effective on September 16, 2022, includes a mandatory early redemption option on all Notes, provided that the proceeds are reinvested. In our historical offerings, there were limited rights of early redemption. Our 36-month Note sold in our third public note offering had a mandatory early redemption option, subject to certain conditions.

The following table is a roll forward of our Notes Program:

Schedule of Roll Forward of Notes Outstanding

The following is a roll forward of deferred financing costs:

Schedule of Roll Forward of Deferred Financing Costs  

The following is a roll forward of the accumulated amortization of deferred financing costs:

Schedule of Roll Forward of Accumulated Amortization of Deferred Financing Costs  

Other Unsecured Debts

Our other unsecured debts are detailed below:

Schedule of Other Unsecured Loans