USE OF SPECIAL PURPOSE ENTITIES AND VARIABLE INTEREST ENTITIES (Tables)

6 Months Ended

Jun. 30, 2026

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Condensed Consolidated Balance Sheets

The carrying values of the Company's total assets and liabilities related to the LMNT 2025-FL3 CLO as of June 30, 2026 and LMNT 2025-FL3 CLO and LMF 2023-1 Financing as of December 31, 2025, included the following VIE assets and liabilities:


ASSETS	June 30, 2026		December 31, 2025
Cash, cash equivalents and restricted cash	$	17,502,400	$	2,253,630
Other assets	—		524,278
Accrued interest receivable	2,924,753		4,309,202
Investment related receivable	—		15,449,323
Loans held for investment, net of allowance for credit losses	642,093,223		856,064,489
Real estate owned, held-for-sale	—		10,906,169
Total Assets	$	662,520,376	$	889,507,091

LIABILITIES
Accrued interest payable	$	900,919	$	1,445,867
Collateralized loan obligations and secured financings(1)	580,686,518		748,433,484
Other liabilities	—		395,205
Total Liabilities	$	581,587,437	$	750,274,556
Equity	80,932,939		139,232,535
Total liabilities and equity	$	662,520,376	$	889,507,091

(1) The stated maturity of the collateralized loan obligations per the terms of the underlying collateralized loan obligation agreement is July 20, 2043 for the LMNT 2025-FL3 CLO and the stated maturity of the secured financing per the terms of the underlying indenture is July 20, 2032.

Schedule of Loan and Borrowing Characteristics

The following tables present certain loan and borrowing characteristics of the LMNT 2025-FL3 CLO as of June 30, 2026 and LMNT 2025-FL3 CLO and LMF 2023-1 Financing as of December 31, 2025:


As of June 30, 2026
Collateralized Loan Obligations/Financings	Count	Principal Value		Carrying Value(1)		Wtd. Avg. Coupon(2)
Collateral (loan investments)	30	$	646,408,549	$	642,093,223	6.93%
Financing provided	1	$	584,983,000	$	580,686,518	5.54%


As of December 31, 2025
Collateralized Loan Obligations/Financings	Count	Principal Value		Carrying Value(1)		Wtd. Avg. Coupon(2)
Collateral (loan investments)	44	$	873,054,065	$	856,064,489	7.11	%


Collateral (REO assets)	1	$	11,467,505	$	10,906,169	N/A
Financing provided	2	$	754,638,462	$	748,433,484	5.98	%

(1) The carrying value of the collateral is net of unaccreted purchase discounts of $0 and $1,595,224 and allowance for credit losses of $21,248,582 and $22,658,121 as of June 30, 2026 and December 31, 2025, respectively. The carrying value for LMNT 2025-FL3 CLO is net of debt issuance costs of $4,296,482 and $4,912,883 for June 30, 2026 and December 31, 2025, respectively and LMF 2023-1 Financing is net of debt issuance costs of $1,292,096 for December 31, 2025.

(2) Weighted average coupon for loan investments assumes applicable 30-day term SOFR of 3.61% and 3.86% as of June 30, 2026 and December 31, 2025, respectively, inclusive of weighted average interest rate floors of 3.22% and 2.55%, and spreads of 3.26% and 3.27%, respectively. As of June 30, 2026 and December 31, 2025, 100.0% of the investments by total exposure earned a floating rate indexed to 30-day term SOFR. Weighted average coupon for the financings assumes applicable 30-day term SOFR of 3.64% and 3.74% as of June 30, 2026 and December 31, 2025, respectively and spreads of 1.91% and 2.24% for June 30, 2026 and December 31, 2025, respectively.

Schedule of Condensed Consolidated Statements of Operations

The statements of operations related to the LMNT 2025-FL3 CLO and LMF 2023-1 Financing for the three and six months ended June 30, 2026 and 2021-FL1 CLO and LMF 2023-1 Financing for the three and six months ended June 30, 2025 include the following income and expense items:


Statements of Operations	Three Months Ended June 30, 2026		Three Months Ended June 30, 2025
Interest income	$	10,865,883	$	18,876,129
Interest expense	(8,582,040)		(12,646,774)
Net interest income	$	2,283,843	$	6,229,355
Less:
Provision for credit losses	(3,174,725)		(99,005)

Depreciation from real estate owned operations	—		(138,777)

General and administrative fees	(74,256)		(227,497)
Net (loss) income	$	(965,138)	$	5,764,076


Statements of Operations	Six Months Ended June 30, 2026		Six Months Ended June 30, 2025
Interest income	$	23,960,659	$	39,361,327
Interest expense	(18,957,805)		(26,283,248)
Net interest income	$	5,002,854	$	13,078,079
Less:
Provision for credit losses	(2,709,051)		(5,838,979)

Depreciation from real estate owned operations	—		(138,777)
Loss on extinguishment of debt	(1,152,861)		—
General and administrative fees	(186,813)		(411,061)
Net (loss) income	$	954,129	$	6,689,262