0001822523-22-000015 | 10-Q | XBRL Viewer

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Cover - shares	9 Months Ended
Cover - shares	Sep. 30, 2022	Nov. 07, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2022
Document Transition Report	false
Entity File Number	001-39995
Entity Registrant Name	AFC GAMMA, INC.
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	85-1807125
Entity Address, Address Line One	525 Okeechobee Blvd., Suite 1650
Entity Address, City or Town	West Palm Beach
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	33401
City Area Code	561
Local Phone Number	510-2390
Title of 12(b) Security	Common Stock, $0.01 par value per share
Trading Symbol	AFCG
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		20,364,000
Entity Central Index Key	0001822523
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Amendment Flag	false

CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Assets
Loans held for investment at fair value (cost of $93,454,875 and $74,913,157 at September 30, 2022 and December 31, 2021, respectively, net)	$ 94,076,146	$ 77,096,319
Debt securities available for sale held at fair value (cost of $16,050,000 at December 31, 2021)	0	15,881,250
Loans held for investment at carrying value, net	339,164,030	257,163,496
Loan receivable at carrying value, net	2,220,466	2,530,588
Current expected credit loss reserve	(5,466,194)	(2,431,558)
Loans held for investment at carrying value and loan receivable at carrying value, net of current expected credit loss reserve	335,918,302	257,262,526
Cash and cash equivalents	36,319,623	109,246,048
Interest receivable	4,442,680	4,412,938
Prepaid expenses and other assets	563,984	949,279
Total assets	471,320,735	464,848,360
Liabilities
Interest reserve	6,126,430	4,782,271
Accrued interest	2,395,833	991,840
Due to affiliate	17,640	0
Dividends payable	11,403,840	8,221,406
Current expected credit loss reserve	688,676	683,177
Accrued management and incentive fees	3,824,735	2,823,044
Accrued direct administrative expenses	1,351,666	1,324,457
Accounts payable and other liabilities	1,131,406	1,528,980
Senior notes payable, net	96,964,872	96,572,656
Line of credit payable to affiliate, net	0	74,845,355
Total liabilities	123,905,098	191,773,186
Commitments and contingencies (Note 10)
Shareholders’ equity
Preferred stock, par value $0.01 per share, 10,000 shares authorized at September 30, 2022 and December 31, 2021 and 125 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively	1	1
Common stock, par value $0.01 per share, 50,000,000 and 25,000,000 shares authorized at September 30, 2022 and December 31, 2021, respectively, and 20,364,000 and 16,442,812 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively	203,640	163,866
Additional paid-in-capital	348,700,927	274,172,934
Accumulated other comprehensive income (loss)	0	(168,750)
Accumulated (deficit) earnings	(1,488,931)	(1,092,877)
Total shareholders’ equity	347,415,637	273,075,174
Total liabilities and shareholders’ equity	$ 471,320,735	$ 464,848,360

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Assets
Loans held for investment at cost	$ 93,454,875	$ 74,913,157
Debt securities available for sale at cost	$ 16,050,000	$ 16,050,000
Shareholders' Equity
Preferred stock, par value (in usd per share)	$ 0.01	$ 0.01
Preferred stock, authorized (in shares)	10,000	10,000
Preferred stock, issued (in shares)	125	125
Preferred stock, outstanding (in shares)	125	125
Common stock, par value (in usd per share)	$ 0.01	$ 0.01
Common stock, authorized (in shares)	50,000,000	25,000,000
Common stock, issued (in shares)	20,364,000	16,442,812
Common stock, outstanding (in shares)	20,364,000	16,442,812

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		9 Months Ended
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Revenue
Interest income	$ 19,785,583	$ 10,616,538	$ 60,072,643	$ 24,050,062
Interest expense	(1,644,088)	0	(5,091,207)	0
Net interest income	18,141,495	10,616,538	54,981,436	24,050,062
Expenses
Management and incentive fees, net (less rebate of $432,426, $256,989, $1,307,969 and $677,439, respectively)	3,824,735	2,542,936	11,873,516	5,498,469
General and administrative expenses	1,050,932	858,663	3,372,813	2,028,046
Stock-based compensation	114,062	51,429	1,221,482	1,662,001
Professional fees	324,846	396,147	1,017,525	726,194
Total expenses	5,314,575	3,849,175	17,485,336	9,914,710
Provision for current expected credit losses	(541,958)	(660,612)	(3,040,135)	(1,372,498)
Realized gains (losses) on sales of investments, net	0	400,000	450,000	400,000
Change in unrealized (losses) gains on loans at fair value, net	(637,279)	1,423,929	(1,561,890)	796,368
Net income before income taxes	11,647,683	7,930,680	33,344,075	13,959,222
Income tax expense	167,164	0	349,763	0
Net income	$ 11,480,519	$ 7,930,680	$ 32,994,312	$ 13,959,222
Earnings per common share:
Basic earnings per common share (in dollars per share)	$ 0.57	$ 0.48	$ 1.68	$ 1.13
Diluted earnings per common share (in dollars per share)	$ 0.57	$ 0.47	$ 1.67	$ 1.10
Weighted average number of common shares outstanding:
Basic weighted average shares of common stock outstanding (in shares)	20,019,760	16,402,984	19,687,730	12,368,977
Diluted weighted average shares of common stock outstanding (in shares)	20,112,033	16,776,648	19,780,003	12,742,641

CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Expenses
Management and incentive fees, rebate	$ 432,426	$ 256,989	$ 1,307,969	$ 677,439

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Statement of Comprehensive Income [Abstract]
Net income	$ 11,480,519	$ 7,930,680	$ 32,994,312	$ 13,959,222
Other comprehensive income (loss):
Reversal of unrealized loss to recognized loss on debt securities available for sale held at fair value	0	0	168,750	0
Total other comprehensive income (loss)	0	0	168,750	0
Total comprehensive income	$ 11,480,519	$ 7,930,680	$ 33,163,062	$ 13,959,222

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($)	Total	Preferred Stock	Common Stock	Additional Paid-In- Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Earnings (Deficit)
Balance at Dec. 31, 2020	$ 91,647,712	$ 1	$ 61,794	$ 91,068,197	$ 0	$ 517,720
Balance (in shares) at Dec. 31, 2020			6,179,392
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock, net of offering costs	181,520,197		$ 102,072	181,418,125
Issuance of common stock, net of offering costs (in shares)			10,263,420
Stock-based compensation	1,662,001			1,662,001
Dividends declared on common shares	(14,374,688)					(14,374,688)
Dividends declared on preferred shares	(7,500)					(7,500)
Net income	13,959,222					13,959,222
Balance at Sep. 30, 2021	274,406,944	1	$ 163,866	274,148,323	0	94,754
Balance (in shares) at Sep. 30, 2021			16,442,812
Balance at Jun. 30, 2021	268,456,722	1	$ 161,169	269,061,069	0	(765,517)
Balance (in shares) at Jun. 30, 2021			16,116,877
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock, net of offering costs	5,038,522		$ 2,697	5,035,825
Issuance of common stock, net of offering costs (in shares)			269,650
Stock-based compensation (in shares)			56,285
Stock-based compensation	51,429			51,429
Dividends declared on common shares	(7,070,409)					(7,070,409)
Net income	7,930,680					7,930,680
Balance at Sep. 30, 2021	274,406,944	1	$ 163,866	274,148,323	0	94,754
Balance (in shares) at Sep. 30, 2021			16,442,812
Balance at Dec. 31, 2021	$ 273,075,174	1	$ 163,866	274,172,934	(168,750)	(1,092,877)
Balance (in shares) at Dec. 31, 2021	16,442,812		16,442,812
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock, net of offering costs	$ 73,346,205		$ 39,694	73,306,511
Issuance of common stock, net of offering costs (in shares)			3,913,230
Stock-based compensation	1,221,562		$ 80	1,221,482
Stock-based compensation (in shares)			7,958
Dividends declared on common shares	(33,382,866)					(33,382,866)
Dividends declared on preferred shares	(7,500)					(7,500)
Other comprehensive income (loss)	168,750				168,750
Net income	32,994,312					32,994,312
Balance at Sep. 30, 2022	$ 347,415,637	1	$ 203,640	348,700,927	0	(1,488,931)
Balance (in shares) at Sep. 30, 2022	20,364,000		20,364,000
Balance at Jun. 30, 2022	$ 338,200,365	1	$ 197,933	339,568,041	0	(1,565,610)
Balance (in shares) at Jun. 30, 2022			19,857,872
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock, net of offering costs	9,023,889		$ 5,065	9,018,824
Issuance of common stock, net of offering costs (in shares)			506,466
Stock-based compensation (in shares)			(338)
Stock-based compensation	114,704		$ 642	114,062
Dividends declared on common shares	(11,403,840)					(11,403,840)
Net income	11,480,519					11,480,519
Balance at Sep. 30, 2022	$ 347,415,637	$ 1	$ 203,640	$ 348,700,927	$ 0	$ (1,488,931)
Balance (in shares) at Sep. 30, 2022	20,364,000		20,364,000

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Statement of Stockholders' Equity [Abstract]
Dividends declared on common shares (in dollars per share)	$ 0.56	$ 0.43	$ 1.67	$ 1.17
Dividends declared on preferred shares (in dollars per share)			$ 60	$ 60

CONSOLIDATED STATEMENTS OF CASH FLOWS	3 Months Ended	9 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS	Sep. 30, 2022 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)
Operating activities:
Net income	$ 11,480,519	$ 32,994,312	$ 13,959,222
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Provision for current expected credit losses	541,958	3,040,135	1,372,498
Realized (gains) losses on sale of investments, net	0	(450,000)	(400,000)
Change in unrealized losses (gains) on loans at fair value, net	637,279	1,561,890	(796,368)
Accretion of deferred loan original issue discount and other discounts		(9,710,278)	(4,038,816)
Amortization of deferred financing and offering costs	206,588	714,471	0
Stock-based compensation	114,062	1,221,482	1,662,001
Payment-in-kind interest		(5,051,007)	(2,787,847)
Changes in operating assets and liabilities
Interest receivable		(29,742)	(1,507,427)
Prepaid expenses and other assets		217,685	(319,140)
Interest reserve		894,159	(2,521,923)
Accrued interest		1,403,993	0
Accrued management and incentive fees, net		1,001,691	2,320,808
Accrued direct administrative expenses		27,209	296,040
Accounts payable and other liabilities		(379,934)	366,696
Net cash provided by (used in) operating activities		27,456,066	7,605,744
Cash flows from investing activities:
Issuance of and fundings on loans		(127,248,748)	(156,345,116)
Proceeds from sales of Assigned Rights		0	2,313,130
Proceeds from sales of loans		10,600,000	10,400,000
Sale of available-for-sale debt securities		15,900,000	0
Principal repayment of loans		32,227,904	22,168,395
Net cash provided by (used in) investing activities		(68,520,844)	(121,463,591)
Cash flows from financing activities:
Proceeds from sale of common stock		75,057,650	185,501,295
Payment of offering costs - equity offering		(1,711,365)	(3,981,098)
Dividends paid to common and preferred shareholders		(30,207,932)	(7,311,779)
Repayment on the line of credit		(75,000,000)	0
Net cash provided by (used in) financing activities		(31,861,647)	174,208,418
Net (decrease) increase in cash and cash equivalents		(72,926,425)	60,350,571
Cash and cash equivalents, beginning of period		109,246,048	9,623,820
Cash and cash equivalents, end of period	36,319,623	36,319,623	69,974,391
Supplemental disclosure of non-cash activity:
Interest reserve withheld from funding of loans		450,000	9,450,468
OID withheld from funding of loans		5,607,675	12,391,624
Loans funded from amounts due to affiliate		0	9,549,625
Change in other comprehensive income (loss) during the period	0	168,750	0
Dividends declared and not yet paid	$ 11,403,840	11,403,840	0
Supplemental information:
Interest paid during the period		2,972,743	0
Income taxes paid during the period		$ 41,287	$ 0

ORGANIZATION	9 Months Ended
ORGANIZATION	Sep. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION	ORGANIZATION AFC Gamma, Inc. (the “Company” or “AFCG”) is an institutional lender primarily to the cannabis industry that was founded in July 2020 by a veteran team of investment professionals. The Company primarily originates, structures, underwrites, and invests in senior secured loans and other types of loans and debt securities for cannabis industry operators in states that have legalized medical and/or adult-use cannabis. The Company is a Maryland corporation and completed its initial public offering (the “IPO”) in March 2021. The Company is externally managed by AFC Management, LLC, a Delaware limited liability company (the Company’s “Manager”), pursuant to the terms of the Amended and Restated Management Agreement, dated January 14, 2021, between the parties (as amended from time-to-time, the “Management Agreement”). The Company’s wholly owned subsidiary, AFCG TRS1, LLC, a Delaware limited liability company (“TRS1”), operates as a taxable real estate investment trust subsidiary (a “TRS”). TRS1 began operating in July 2021, and the financial statements of TRS1 have been consolidated within the Company’s consolidated financial statements beginning with the quarter ended September 30, 2021. The Company operates in one operating segment and is primarily focused on financing senior secured loans and other types of loans primarily to cannabis industry operators in states where medical and/or adult-use cannabis is legal. These loans are generally held for investment and are secured, directly or indirectly, by real estate, equipment, the value associated with licenses and/or other assets of borrowers depending on the applicable laws and regulations governing such borrowers. The Company has elected to be taxed as a real estate investment trust (“REIT”) for United States federal income tax purposes under the Internal Revenue Code of 1986, as amended (the “Code”), commencing with its taxable year ended December 31, 2020. The Company generally will not be subject to United States federal income taxes on its REIT taxable income as long as it annually distributes all of its REIT taxable income prior to the deduction for dividends paid to shareholders and complies with various other requirements as a REIT.

SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
SIGNIFICANT ACCOUNTING POLICIES	Sep. 30, 2022
Accounting Policies [Abstract]
SIGNIFICANT ACCOUNTING POLICIES	SIGNIFICANT ACCOUNTING POLICIES The accompanying unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and results of operations included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021 filed with the SEC. Refer to Note 2 to the Company’s Annual Report on Form 10-K for a description of the Company’s significant accounting policies. The Company has included disclosures below regarding basis of presentation and other accounting policies that (i) are required to be disclosed quarterly, (ii) have material changes or (iii) the Company views as critical as of the date of this report. Basis of Presentation The accompanying unaudited interim consolidated financial statements and related notes have been prepared on the accrual basis of accounting in conformity with generally accepted accounting principles in the United States (“GAAP”) and in conformity with the rules and regulations of the SEC applicable to interim financial information. These unaudited interim consolidated financial statements reflect all adjustments that, in the opinion of management, are considered necessary for a fair statement of the Company’s results of operations and financial condition as of and for the periods presented. The current period’s results of operations will not necessarily be indicative of results that ultimately may be achieved for the year ending December 31, 2022. Investment in Marketable Securities Marketable debt securities in the Company’s portfolio are recorded at fair value and unrealized gains or losses are excluded from net income on the consolidated statement of operations and reported as a component of accumulated other comprehensive income within shareholders’ equity. Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Actual results could differ from those estimates. Significant estimates include the valuation of loans held for investment at fair value and current expected credit losses (“CECL”). Recent Accounting Pronouncements In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued because of reference rate reform. ASU No. 2020-04 is effective for all entities as of March 12, 2020 through December 31, 2022. In January 2021, the FASB issued ASU No. 2021-01, Reference Rate Reform (Topic 848): Scope, which clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. ASU No. 2021-01 is effective immediately for all entities. An entity may elect to apply the amendments on a full retrospective basis as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or on a prospective basis to new modifications from any date within an interim period that includes or is subsequent to the date of the issuance of a final update, up to the date that financial statements are available to be issued. If an entity elects to apply any of the amendments for an eligible hedging relationship, any adjustments as a result of those elections must be reflected as of the date the entity applies the election. They do not apply to contract modifications made after December 31, 2022, new hedging relationships entered into after December 31, 2022, and existing hedging relationships evaluated for effectiveness in periods after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that apply certain optional expedients in which the accounting effects are recorded through the end of the hedging relationship including periods after December 31, 2022. The Company h

LOANS HELD FOR INVESTMENT AT FAIR VALUE

9 Months Ended

Sep. 30, 2022

LOANS HELD FOR INVESTMENT AT FAIR VALUE [Abstract]

LOANS HELD FOR INVESTMENT AT FAIR VALUE

As of September 30, 2022 and December 31, 2021, the Company’s portfolio included three loans held at fair value. The aggregate originated commitment under these loans was approximately $97.1 million and $75.9 million, respectively, and outstanding principal was approximately $95.6 million and $77.6 million, as of September 30, 2022 and December 31, 2021, respectively. For the nine months ended September 30, 2022, the Company funded approximately $18.7 million of additional principal and had approximately $3.0 million of principal repayments of loans held at fair value. As of September 30, 2022 and December 31, 2021, none of the Company’s loans held at fair value had floating interest rates.

The following tables summarize the Company’s loans held at fair value as of September 30, 2022 and December 31, 2021:


	As of September 30, 2022
	Fair Value (1)		Carrying Value (2)		Outstanding Principal (2)		Weighted Average Remaining Life (Years) (3)

Senior term loans	$	94,076,146	$	93,454,875	$	95,575,523	1.5
Total loans held at fair value	$	94,076,146	$	93,454,875	$	95,575,523	1.5


	As of December 31, 2021
	Fair Value (1)		Carrying Value (2)		Outstanding Principal (2)		Weighted Average Remaining Life (Years) (3)

Senior term loans	$	77,096,319	$	74,913,157	$	77,630,742	2.2
Total loans held at fair value	$	77,096,319	$	74,913,157	$	77,630,742	2.2

(1)Refer to Note 14 to the Company's unaudited consolidated financial statements.

(2)The difference between the Carrying Value and the Outstanding Principal amount of the loans consists of unaccreted original issue discount (“OID”) and loan origination costs.

(3)Weighted average remaining life is calculated based on the fair value of the loans as of September 30, 2022 and December 31, 2021.

The following table presents changes in loans held at fair value as of and for the nine months ended September 30, 2022:


	Principal		Original Issue Discount		Unrealized Gains (Losses)		Fair Value

Total loans held at fair value at December 31, 2021	$	77,630,742	$	(2,717,584)	$	2,183,161	$	77,096,319
Change in unrealized (losses) gains on loans at fair value, net	—		—		(1,561,890)		(1,561,890)
New fundings	18,737,988		(479,276)		—		18,258,712
Loan repayments	(1,960,000)		—		—		(1,960,000)
Loan amortization payments	(1,089,776)		—		—		(1,089,776)
Accretion of original issue discount	—		1,076,212		—		1,076,212
PIK interest	2,256,569		—		—		2,256,569
Total loans held at fair value at September 30, 2022	$	95,575,523	$	(2,120,648)	$	621,271	$	94,076,146

A more detailed listing of the Company’s loans held at fair value portfolio based on information available as of September 30, 2022 is as follows:


	Collateral Location	Collateral Type (1)	Fair Value (2)		Carrying Value (3)		Outstanding Principal (3)		Interest Rate			Maturity Date (4)	Payment Terms (5)

Private Co. A	AZ, MI, MD, MA	C, D	$	78,444,211	$	78,055,662	$	79,772,976	15.5	%	(6)	5/8/2024	P/I
Public Co. A	NV	C	1,174,066		1,198,639		1,198,639		15.0	%	(7)	9/30/2023	I/O
Private Co. B	MI	C, D	14,457,869		14,200,574		14,603,908		18.7	%	(8)	9/1/2023	P/I
Total loans held at fair value			$	94,076,146	$	93,454,875	$	95,575,523

(1)C = Cultivation Facilities, D = Dispensary/Retail Facilities.

(2)Refer to Note 14 to the Company’s unaudited consolidated financial statements.

(3)The difference between the Carrying Value and the Outstanding Principal amount of the loans consists of OID and loan origination costs.

(4)Certain loans are subject to contractual extension options and may be subject to performance based or other conditions as stipulated in the loan agreement. Actual maturities may differ from contractual maturities stated herein as certain borrowers may have the right to prepay with or without paying a prepayment penalty. The Company may also extend contractual maturities and amend other terms of the loans in connection with loan modifications.

(5)I/O = interest-only, P/I = principal and interest. P/I loans may include interest-only periods for a portion of the loan term.

(6)Base weighted interest rate of 12.8% and payment-in-kind (“PIK”) interest rate of 2.7%.

(7)Base interest rate of 7.5% and PIK interest rate of 7.5%. As amended, cash interest is deferred from July 1, 2022 until November 1, 2022.

(8)Base weighted interest rate of 14.7% and PIK interest rate of 4.0%.

LOANS HELD FOR INVESTMENT AT CARRYING VALUE

9 Months Ended

Sep. 30, 2022

LOANS HELD FOR INVESTMENT AT CARRYING VALUE [Abstract]

LOANS HELD FOR INVESTMENT AT CARRYING VALUE

As of September 30, 2022 and December 31, 2021, the Company’s portfolio included ten and twelve loans, respectively, held at carrying value. The aggregate originated commitment amount under these loans was approximately $401.1 million and $324.3 million, respectively, and outstanding principal was approximately $349.3 million and $270.8 million, as of September 30, 2022 and December 31, 2021, respectively. For the nine months ended September 30, 2022, the Company funded approximately $139.6 million of outstanding principal. As of September 30, 2022 and December 31, 2021, approximately 39% and 48%, respectively, of the Company’s loans held at carrying value have floating interest rates. As of September 30, 2022, these floating benchmark rates include one-month LIBOR subject to a weighted average floor of 1.0% and quoted at 3.143%, one-month Secured Overnight Financing Rate (“SOFR”) subject to a weighted average floor of 1.0% and quoted at 3.042% and U.S. Prime Rate subject to a weighted average floor of 4.4% quoted at 6.250%.

The following tables summarize the Company’s loans held at carrying value as of September 30, 2022 and December 31, 2021:


	As of September 30, 2022
	Outstanding Principal (1)		Original Issue Discount		Carrying Value (1)		Weighted Average Remaining Life (Years) (2)

Senior term loans	$	349,337,390	$	(10,173,360)	$	339,164,030	2.7
Total loans held at carrying value	$	349,337,390	$	(10,173,360)	$	339,164,030	2.7


	As of December 31, 2021
	Outstanding Principal (1)		Original Issue Discount		Carrying Value (1)		Weighted Average Remaining Life (Years) (2)

Senior term loans	$	270,841,715	$	(13,678,219)	$	257,163,496	3.4
Total loans held at carrying value	$	270,841,715	$	(13,678,219)	$	257,163,496	3.4

(1)The difference between the Carrying Value and the Outstanding Principal amount of the loans consists of unaccreted OID and loan origination costs.

(2)Weighted average remaining life is calculated based on the carrying value of the loans as of September 30, 2022 and December 31, 2021.

The following table presents changes in loans held at carrying value as of and for the nine months ended September 30, 2022:


	Principal		Original Issue Discount		Carrying Value

Total loans held at carrying value at December 31, 2021	$	270,841,715	$	(13,678,219)	$	257,163,496
New fundings	139,571,920		(5,128,400)		134,443,520
Accretion of original issue discount	—		8,633,259		8,633,259
Loan repayments	(52,014,211)		—		(52,014,211)
Sale of loans	(10,000,000)		—		(10,000,000)
PIK interest	2,768,252		—		2,768,252
Loan amortization payments	(1,830,286)		—		(1,830,286)
Total loans held at carrying value at September 30, 2022	$	349,337,390	$	(10,173,360)	$	339,164,030

A more detailed listing of the Company’s loans held at carrying value portfolio based on information available as of September 30, 2022 is as follows:


	Collateral Location	Collateral Type (1)	Outstanding Principal (2)		Original Issue Discount		Carrying Value (2)		Interest Rate			Maturity Date (3)	Payment Terms (4)

Private Co. C	PA	C, D	$	24,159,078	$	(610,238)	$	23,548,840	18.5	%	(5)	12/01/2025	P/I
Sub. of Private Co. G	NJ, PA	C, D	67,912,444		(1,953,328)		65,959,116		16.5	%	(6)	05/01/2026	P/I
Public Co. F	AR, AZ, IL, FL, NV, OH, MA, MI, MD, NV	C, D	86,600,000		(854,133)		85,745,867		8.6	%	(7)	05/30/2023	I/O
Sub. of Private Co. H	IL	C	5,781,250		(46,712)		5,734,538		15.0	%	(8)	05/11/2023	I/O
Private Co. K	MA	C, D	10,765,379		(915,708)		9,849,671		15.0	%	(9)	05/03/2027	P/I
Private Co. I	MD	C, D	10,550,781		(177,777)		10,373,004		17.6	%	(10)	08/01/2026	P/I
Private Co. J	MO	C, D	23,568,458		(573,986)		22,994,472		19.1	%	(11)	09/01/2025	P/I
Sub. of Public Co. H	CT, IA, IL, ME, MI, NJ, PA	C, D	60,000,000		(1,910,204)		58,089,796		9.8	%	(12)	01/01/2026	I/O
Private Co. L	MO, NJ, OH	C, D	50,000,000		(2,303,571)		47,696,429		12.0	%	(13)	05/01/2026	P/I
Sub. of Public Co. M	IL, MI, MA, NJ, OH, PA	C, D	10,000,000		(827,703)		9,172,297		9.5	%	(14)	08/27/2025	I/O
Total loans held at carrying value			$	349,337,390	$	(10,173,360)	$	339,164,030

(1)C = Cultivation Facilities, D = Dispensary/Retail Facilities.

(2)The difference between the Carrying Value and the Outstanding Principal amount of the loans consists of unaccreted OID and loan origination costs.

(3)Certain loans are subject to contractual extension options and may be subject to performance based or other conditions as stipulated in the loan agreement. Actual maturities may differ from contractual maturities stated herein as certain borrowers may have the right to prepay with or without paying a prepayment penalty. The Company may also extend contractual maturities and amend other terms of the loans in connection with loan modifications.

(4)I/O = interest-only, P/I = principal and interest. P/I loans may include interest-only periods for a portion of the loan term.

(5)Base interest rate of 9.0% plus Prime (Prime floor of 4.0%) and PIK interest rate of 4.0%.

(6)Base interest rate of 10.25% plus Prime (Prime floor of 4.5%).

(7)Base weighted average interest rate of 8.6%.

(8)Base interest rate of 15.0%.

(9)Base interest rate of 12.0% plus SOFR (SOFR floor of 1.0%)

(10)Base interest rate of 12.0% plus LIBOR (LIBOR floor of 1.0%) and PIK interest rate of 2.5%.

(11)Base interest rate of 12.0% plus LIBOR (LIBOR floor of 1.0%) and PIK interest rate of 4.0%.

(12)Base interest rate of 9.8%.

(13)Base interest rate of 12.0%.

(14)Base interest rate of 9.5%.

LOAN RECEIVABLE AT CARRYING VALUE

9 Months Ended

Sep. 30, 2022

Receivables [Abstract]

LOAN RECEIVABLE AT CARRYING VALUE

As of September 30, 2022 and December 31, 2021, the Company’s portfolio included one loan receivable at carrying value. The originated commitment under this loan was $4.0 million and outstanding principal was approximately $2.2 million and $2.5 million as of September 30, 2022 and December 31, 2021, respectively. During the nine months ended September 30, 2022, the Company received repayments of approximately $0.3 million of outstanding principal.

The following table presents changes in loans receivable as of and for the nine months ended September 30, 2022:


	Principal		Original Issue Discount		Carrying Value

Total loan receivable at carrying value at December 31, 2021	$	2,533,266	$	(2,678)	$	2,530,588
Principal repayment of loans	(337,114)		—		(337,114)
Accretion of original issue discount	—		805		805
PIK interest	26,187		—		26,187
Total loan receivable at carrying value at September 30, 2022	$	2,222,339	$	(1,873)	$	2,220,466

CURRENT EXPECTED CREDIT LOSSES

9 Months Ended

Sep. 30, 2022

Credit Loss [Abstract]

CURRENT EXPECTED CREDIT LOSSES

The Company estimates its current expected credit losses (“CECL”) on both the outstanding balances and unfunded commitments on loans held for investment and requires consideration of a broader range of historical experience adjusted for current conditions and reasonable and supportable forecast information to inform credit loss estimates (the “CECL Reserve”) using a model that considers multiple datapoints and methodologies that may include the likelihood of default and expected loss given default for each individual loan, discounted cash flows (“DCF”), and other inputs which may include the risk rating of the loan, how recently the loan was originated compared to the measurement date, and expected prepayment if applicable. Calculation of the CECL Reserve requires loan specific data, which may include fixed charge coverage ratio, loan-to-value, property type and geographic location. Estimating the CECL Reserve also requires significant judgment with respect to various factors, including but not limited to (i) the appropriate historical loan loss reference data, (ii) the expected timing of loan repayments, (iii) calibration of the likelihood of default to reflect the risk characteristics of the Company’s loan portfolio and (iv) the Company’s current and future view of the macroeconomic environment. The Company may consider loan-specific qualitative factors on certain loans to estimate its CECL Reserve, which may include (i) whether cash from the borrower’s operations is sufficient to cover the debt service requirements currently and into the future, (ii) the ability of the borrower to refinance the loan and (iii) the liquidation value of collateral. For loans where the Company has deemed the borrower/sponsor to be experiencing financial difficulty, the Company may elect to apply a practical expedient in which the fair value of the underlying collateral is compared to the amortized cost of the loan in determining a specific CECL allowance. In order to estimate the future expected loan losses relevant to the Company’s portfolio, the Company may consider historical market loan loss data provided by a third-party data service. The third party’s loan database includes historical loss data for commercial mortgage-backed securities (“CMBS”), which the Company believes is a reasonably comparable and available data set to its type of loans.

As of September 30, 2022 and December 31, 2021, the Company’s CECL Reserve for its loans held at carrying value and loan receivable at carrying value is approximately $6.2 million and $3.1 million, respectively, or 1.80% and 1.20%, respectively, of the Company’s total loans held at carrying value and loans receivable at carrying value of approximately $341.4 million and $259.7 million, respectively, and is bifurcated between the current expected credit loss reserve (contra-asset) related to outstanding balances on loans held at carrying value and loans receivable at carrying value of approximately $5.5 million and $2.4 million, respectively, and a liability for unfunded commitments of approximately $0.7 million and $0.7 million, respectively. The liability was based on the unfunded portion of the loan commitment over the full contractual period over which the Company is exposed to credit risk through a current obligation to extend credit. Management considered the likelihood that funding will occur, and if funded, the expected credit loss on the funded portion.

Activity related to the CECL Reserve for outstanding balances and unfunded commitments on the Company’s loans held at carrying value and loans receivable at carrying value as of and for the three and nine months ended September 30, 2022 was as follows:


	Outstanding (1)		Unfunded (2)		Total
Balance at June 30, 2022	$	5,018,072	$	594,840	$	5,612,912
Provision for current expected credit losses	448,122		93,836		541,958
Write-offs	—		—		—
Recoveries	—		—		—
Balance at September 30, 2022	$	5,466,194	$	688,676	$	6,154,870


	Outstanding (1)		Unfunded (2)		Total
Balance at December 31, 2021	$	2,431,558	$	683,177	$	3,114,735
Provision for current expected credit losses	3,034,636		5,499		3,040,135
Write-offs	—		—		—
Recoveries	—		—		—
Balance at September 30, 2022	$	5,466,194	$	688,676	$	6,154,870

(1)As of September 30, 2022 and December 31, 2021, the CECL Reserve related to outstanding balances on loans at carrying value and loans receivable at carrying value is recorded within current expected credit loss reserve in the Company’s consolidated balance sheets.

(2)As of September 30, 2022 and December 31, 2021, 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.

The Company continuously evaluates the credit quality of each loan by assessing the risk factors of each loan and assigning a risk rating based on a variety of factors. Risk factors include property type, geographic and local market dynamics, physical condition, projected cash flow, loan structure and exit plan, loan-to-value ratio, fixed charge coverage ratio, project sponsorship, and other factors deemed necessary. 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

The risk ratings are primarily based on historical data as well as taking into account future economic conditions.

As of September 30, 2022, the carrying value, excluding the CECL Reserve, of the Company’s loans held at carrying value and loans receivable at carrying value within each risk rating by year of origination is as follows:


Risk Rating:	2022		2021		2020		Total
1	$	—	$	—	$	—	$	—
2	26,209,866		59,536,000		—		85,745,866
3	66,718,397		129,783,451		25,769,306		222,271,154
4	—		33,367,476		—		33,367,476
5	—		—		—		—
Total	$	92,928,263	$	222,686,927	$	25,769,306	$	341,384,496

- Definition

The entire disclosure for credit loss on financial instrument measured at amortized cost basis, net investment in lease, off-balance sheet credit exposure, and available-for-sale debt security.

+ References + Details

INTEREST RECEIVABLE

9 Months Ended

Sep. 30, 2022

Interest Receivable and Other Assets [Abstract]

INTEREST RECEIVABLE

The following table summarizes the interest receivable by the Company as of September 30, 2022 and December 31, 2021:


	As of September 30, 2022		As of December 31, 2021

Interest receivable	$	3,811,696	$	3,562,566
PIK receivable	490,284		554,357
Unused fees receivable	140,700		296,015
Total interest receivable	$	4,442,680	$	4,412,938

INTEREST RESERVE

9 Months Ended

Sep. 30, 2022

INTEREST RESERVE [Abstract]

INTEREST RESERVE

At September 30, 2022 and December 31, 2021, the Company had three and seven loans, respectively, that included a loan-funded interest reserve. For the three and nine months ended September 30, 2022, approximately $3.0 million and $8.6 million, respectively, of aggregate interest income was earned and disbursed from the interest reserves. For the three and nine months ended September 30, 2021, approximately $1.8 million and $2.5 million, respectively, of aggregate interest income was earned and disbursed from the interest reserves.

The following table presents changes in the interest reserve as of and for the three and nine months ended September 30, 2022 and 2021:


	Three months ended September 30,				Nine months ended September 30,
	2022		2021		2022		2021
Beginning reserves	$	5,186,615	$	5,547,863	$	4,782,271	$	1,325,750
New reserves	3,970,958		4,525,468		9,970,958		9,450,468
Reserves disbursed	(3,031,143)		(1,819,036)		(8,626,799)		(2,521,923)
Ending reserves	$	6,126,430	$	8,254,295	$	6,126,430	$	8,254,295

DEBT

9 Months Ended

Sep. 30, 2022

Debt Disclosure [Abstract]

DEBT

Revolving Credit Facility

On April 29, 2022, the Company entered into the Loan and Security Agreement (the “Revolving Credit Agreement”) by and among the Company, the other loan parties from time to time party thereto, the lenders party thereto, and the lead arranger, bookrunner and administrative agent party thereto, pursuant to which, the Company obtained a $60.0 million senior secured revolving credit facility (the “Revolving Credit Facility”). The Revolving Credit Facility has a maturity date of April 29, 2025.

The Revolving Credit Facility contains aggregate commitments of $60.0 million from two FDIC-insured banking institutions (which may be increased to up to $100.0 million in aggregate, subject to available borrowing base and additional commitments) which may be borrowed, repaid and redrawn, subject to a borrowing base based on eligible loan

obligations held by the Company and subject to the satisfaction of other conditions provided under the Revolving Credit Facility. Interest is payable on the Revolving Credit Facility at the greater of (1) the applicable base rate plus 0.50% and (2) 4.50%, as provided in the Revolving Credit Agreement, payable in cash in arrears. The Company incurred a one-time commitment fee expense of approximately $0.5 million, which is amortized over the life of the facility. Commencing on the six-month anniversary of the closing date, the Revolving Credit Facility has an unused line fee of 0.25% per annum, to be paid semi-annually in arrears, which will be included within interest expense in the Company’s consolidated statements of operations. For the three and nine months ended September 30, 2022, the Company had not drawn on the Revolving Credit Facility or incurred any interest expense related to the Revolving Credit Facility. The Company amortized $40,130 and $67,610 of deferred financing costs for the three and nine months ended September 30, 2022, respectively.

The obligations of the Company under the Revolving Credit Facility are secured by certain assets of the Company comprising of or relating to loan obligations designated for inclusion in the borrowing base. In addition, the Company is subject to various financial and other covenants, including: (1) liquidity of at least $5.0 million, (2) annual debt service coverage of at least 1.5 to 1.0 and (3) secured debt not to exceed 25% of total consolidated assets of the Company and its subsidiaries.

Termination of AFC Finance Revolving Credit Facility

In July 2020, the Company obtained a secured revolving credit line (the “AFCF Revolving Credit Facility”) from AFC Finance, LLC and Gamma Lending HoldCo LLC, each affiliates of the Company’s management, secured by the assets of the Company. The AFCF Revolving Credit Facility originally had a loan commitment of $40.0 million at an interest rate of 8% per annum, payable in cash in arrears. The maturity date of the AFCF Revolving Credit Facility was the earlier of (i) July 31, 2021 and (ii) the date of the closing of any credit facility where the proceeds are incurred to refund, refinance or replace the AFCF Revolving Credit Agreement, in accordance with terms of the credit agreement governing the AFCF Revolving Credit Facility (the “AFCF Revolving Credit Agreement”).

On May 7, 2021, the Company amended the AFCF Revolving Credit Agreement (the “First Amendment”). The First Amendment (i) increased the loan commitment from $40.0 million to $50.0 million, (ii) decreased the interest rate from 8% per annum to 6% per annum, (iii) removed Gamma Lending Holdco LLC as a lender and (iv) extended the maturity date from July 31, 2021 to the earlier of (A) December 31, 2021 or (B) the date of the closing of any refinancing credit facility.

On November 3, 2021, the Company entered into the Second Amendment to the AFCF Revolving Credit Agreement (the “Second Amendment”). Under the Second Amendment, payments to AFC Finance, LLC for interest, commitment fees and unused fees (net applicable taxes) were required to be paid directly or indirectly through AFC Finance, LLC to charitable organizations designated by AFC Finance, LLC. The Second Amendment also (i) increased the loan commitment from $50.0 million to $75.0 million, (ii) decreased the interest rate from 6% per annum to 4.75% per annum, (iii) introduced a one-time commitment fee of 0.25%, to be paid in three equal quarterly installments, and an unused line fee of 0.25% per annum, to be paid quarterly in arrears, (iv) provided an optional buyout provision for the holders of the 2027 Senior Notes upon an event of default under the AFCF Revolving Credit Agreement and (v) extended the fixed element of the maturity date from December 31, 2021 to September 30, 2022. Pursuant to the Second Amendment, the Company incurred a one-time commitment fee expense of $187,500 in November 2021, payable in three quarterly installments that began in the first quarter of 2022, which is amortized over the life of the loan.

On April 29, 2022, upon the Company’s entry into the Revolving Credit Facility, the Company terminated the AFCF Revolving Credit Agreement. In connection with the termination, the Company paid the remaining amount of the commitment fee outstanding of approximately $0.1 million and accelerated the remaining deferred financing costs of approximately $0.1 million in the second quarter of 2022. There were no other payments, premiums or penalties required to be paid in connection with the termination.

As of December 31, 2021, the outstanding loan balance under the AFCF Revolving Credit Facility was $75.0 million. All borrowings that were previously outstanding as of December 31, 2021 were repaid in full on January 3, 2022. For the three and nine months ended September 30, 2022, the Company incurred interest expense on the AFCF Revolving Credit Facility of $0 and $19,792, respectively. For the three and nine months ended September 30, 2021, the Company did not incur any interest expense on the AFCF Revolving Credit Facility.

2027 Senior Notes

On November 3, 2021, the Company issued $100.0 million in aggregate principal amount of senior unsecured notes due in May 2027 (the “2027 Senior Notes”). The 2027 Senior Notes accrue interest at a rate of 5.75% per annum. Interest on the 2027 Senior Notes is due semi-annually on May 1 and November 1 of each year, beginning on May 1, 2022. The net

proceeds from the offering were approximately $97.0 million, after deducting the initial purchasers’ discounts and commissions and estimated offering fees and expenses payable by the Company. The Company intends to use the proceeds from the issuance of the 2027 Senior Notes (i) to fund loans related to unfunded commitments to existing borrowers, (ii) to originate and participate in commercial loans to companies operating in the cannabis industry that are consistent with the Company’s investment strategy and (iii) for working capital and other general corporate purposes. The terms of the 2027 Senior Notes are governed by an indenture, dated November 3, 2021, among us, as issuer, and TMI Trust Company, as trustee (the “Indenture”).

Under the Indenture, the Company is required to cause all of its existing and future subsidiaries to guarantee the 2027 Senior Notes, other than certain immaterial subsidiaries as set forth in the Indenture. Subsequent to the Company’s investment in the senior secured loan to Private Company I being transferred to TRS1 on April 1, 2022, TRS1 was added as a subsidiary guarantor under the Indenture. As of September 30, 2022, the 2027 Senior Notes are guaranteed by TRS1.

Prior to February 1, 2027, the Company may redeem the 2027 Senior Notes in whole or in part at a price equal to the greater of 100% of the principal amount of the 2027 Senior Notes being redeemed or a make-whole premium set forth in the Indenture, plus accrued and unpaid interest thereon to, but excluding, the applicable redemption date. On or after February 1, 2027, we may redeem the 2027 Senior Notes in whole or in part at a price equal to 100% of the principal amount of the 2027 Senior Notes being redeemed, plus accrued and unpaid interest, if any, to, but excluding, the applicable redemption date. The Indenture also requires us to offer to purchase all of the 2027 Senior Notes at a purchase price equal to 101% of the principal amount of the 2027 Senior Notes, plus accrued and unpaid interest if a ‘‘change of control triggering event’’ (as defined in the Indenture) occurs.

The Indenture contains customary terms and restrictions, subject to a number of exceptions and qualifications, including restrictions on the Company’s ability to (1) incur additional indebtedness unless the Annual Debt Service Charge (as defined in the Indenture) is no less than 1.5 to 1.0, (2) incur or maintain total debt in an aggregate principal amount greater than 60% of the Company’s consolidated Total Assets (as defined in the Indenture), (3) incur or maintain secured debt in an aggregate principal amount greater than 25% of the Company’s consolidated Total Assets (as defined in the Indenture), and (4) merge, consolidate or sell substantially all of the Company’s assets. In addition, the Indenture also provides for customary events of default. If any event of default occurs, any amount then outstanding under the Indenture may immediately become due and payable. These events of default are subject to a number of important exceptions and qualifications set forth in the Indenture.

The 2027 Senior Notes are due on May 1, 2027. Scheduled principal payments on the 2027 Senior Notes as of September 30, 2022 are as follows:


	2027 Senior Notes
Year
2022 (remaining)	$	—
2023	—
2024	—
2025	—
2026	—
Thereafter	100,000,000
Total principal	$	100,000,000

The following table reflects a summary of interest expense incurred during the three and nine months ended September 30, 2022. There was no interest expense incurred during the three and nine months ended September 30, 2021.


	Three months ended September 30, 2022
	2027 Senior Notes		Revolving Credit Facility		AFCF Revolving Credit Facility		Total Borrowings

Interest expense	$	1,437,500	$	—	$	—	$	1,437,500
Unused fee expense	—		—		—		—
Amortization of deferred financing costs	166,458		40,130		—		206,588
Total interest expense	$	1,603,958	$	40,130	$	—	$	1,644,088


	Nine months ended September 30, 2022
	2027 Senior Notes		Revolving Credit Facility		AFCF Revolving Credit Facility		Total Borrowings

Interest expense	$	4,296,527	$	—	$	19,792	$	4,316,319
Unused fee expense	—		—		60,417		60,417
Amortization of deferred financing costs	492,216		67,610		154,645		714,471
Total interest expense	$	4,788,743	$	67,610	$	234,854	$	5,091,207

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-URI https://asc.fasb.org/topic&trid=2208564

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (h)
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (g)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
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-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495348-112611

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (i)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

+ Details

COMMITMENTS AND CONTINGENCIES

9 Months Ended

Sep. 30, 2022

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

As of September 30, 2022 and December 31, 2021, the Company had the following commitments to fund various investments:


	As of September 30, 2022		As of December 31, 2021

Total original loan commitments	$	502,184,382	$	419,198,125
Less: drawn commitments	(446,023,223)		(363,659,505)
Total undrawn commitments	$	56,161,159	$	55,538,620

The Company from time to time may be a party to litigation in the normal course of business. As of September 30, 2022, the Company is not aware of any legal claims that could materially impact its business, financial condition or results of operations.

The Company primarily provides loans to companies operating in the cannabis industry which involves significant risks, including the risk of strict enforcement against the Company’s borrowers of the federal illegality of cannabis, the Company’s borrowers’ inability to renew or otherwise maintain their licenses or other requisite authorizations for their cannabis operations, and such loans lack of liquidity, and the Company could lose all or part of any of the Company’s loans.

The Company’s ability to grow or maintain its business with respect to the loans it makes to companies operating in the cannabis industry depends on state laws pertaining to the cannabis industry. New laws that are adverse to the Company’s borrowers may be enacted, and current favorable state or national laws or enforcement guidelines relating to cultivation, production and distribution of cannabis may be modified or eliminated in the future, which would impede the Company’s ability to grow and could materially adversely affect the Company’s business.

Management’s plan to mitigate risks include monitoring the legal landscape as deemed appropriate. Also, should a loan default or otherwise be seized, the Company may be prohibited from owning cannabis assets and thus could not take possession of collateral, in which case the Company would look to sell the loan, which could result in the Company realizing a loss on the transaction.

SHAREHOLDERS' EQUITY

9 Months Ended

Sep. 30, 2022

Equity [Abstract]

SHAREHOLDERS' EQUITY

SHAREHOLDERS’ EQUITY

Series A Preferred Stock

As of September 30, 2022 and December 31, 2021, the Company has authorized 10,000 preferred shares and issued 125 of the preferred shares designated as 12.0% Series A Cumulative Non-Voting Preferred Stock, par value $0.01 per share (the “Series A Preferred Stock”).

The Series A Preferred Stock entitles the holders thereof to receive cumulative cash dividends at a rate per annum of 12.0% of the liquidation preference of $1,000 per share plus all accumulated and unpaid dividends thereon. The Company generally may not declare or pay, or set apart for payment, any dividend or other distribution on any shares of the Company’s stock ranking junior to the Series A Preferred Stock as to dividends, including the Company’s common stock, or redeem, repurchase or otherwise make payments on any such shares, unless full, cumulative dividends on all outstanding shares of Series A Preferred Stock have been declared and paid or set apart for payment for all past dividend periods. The holders of the Series A Preferred Stock generally have no voting rights except in limited circumstances, including certain amendments to the Company’s charter and the authorization or issuance of equity securities senior to or on parity with the Series A Preferred Stock. The Series A Preferred Stock is not convertible into shares of any other class or series of our stock. The Series A Preferred Stock is senior to all other classes and series of shares of the Company’s stock as to dividend and redemption rights and rights upon the Company’s liquidation, dissolution and winding up.

Upon written notice to each record holder of the Series A Preferred Stock as to the effective date of redemption, the Company may redeem the shares of the outstanding Series A Preferred Stock at the Company’s option, in whole or in part, at any time for cash at a redemption price equal to $1,000 per share, for a total of $125,000 for the 125 shares outstanding, plus all accrued and unpaid dividends thereon up to and including the date fixed for redemption. Shares of the Series A Preferred Stock that are redeemed shall no longer be deemed outstanding shares of the Company and all rights of the holders of such shares will terminate.

Common Stock

The Board of Directors of the Company (the “Board”) approved a seven-for-one stock split of the Company’s common stock effective on January 25, 2021. All common shares, stock options, and per share information presented in the consolidated financial statements have been adjusted to reflect the stock split on a retroactive basis for all periods presented, including reclassifying an amount equal to the increase in par value of common stock from additional paid-in capital. There was no change in the par value of the Company’s common stock. Upon consummation of the Company’s IPO, any shareholder that held fractional shares received cash in lieu of such fractional shares based on the public offering price of the shares of the Company’s common stock at IPO. This resulted in the reduction of 15 shares issued and outstanding.

On March 23, 2021, the Company completed its IPO of 6,250,000 shares of its common stock at a price of $19.00 per share, raising approximately $118.8 million in gross proceeds. The underwriters also exercised their over-allotment option to purchase up to an additional 937,500 shares of the Company’s common stock at a price of $19.00 per share, which was completed on March 26, 2021, raising approximately $17.8 million in additional gross proceeds. The underwriting commissions of approximately $8.3 million and $1.2 million, respectively, are reflected as a reduction of additional paid-in capital on the consolidated statements of shareholders’ equity. The Company incurred approximately $3.1 million of expenses in connection with the IPO, which is reflected as a reduction in additional paid-in capital. The net proceeds to the Company totaled approximately $123.9 million.

On June 28, 2021, the Company completed an offering of 2,750,000 shares of its common stock at a price of $20.50 per share, raising approximately $56.4 million in gross proceeds. The underwriting commissions of approximately $3.1 million are reflected as a reduction of additional paid-in capital on the consolidated statements of shareholders’ equity. The Company incurred approximately $0.7 million of expenses in connection with the offering, which is reflected as a reduction in additional paid-in capital. The net proceeds to the Company totaled approximately $52.6 million.

On July 6, 2021, the underwriters partially exercised their over-allotment option to purchase 269,650 shares of the Company’s common stock at a price of $20.50 per share raising approximately $5.5 million in additional gross proceeds or approximately $5.2 million in net proceeds after underwriting commissions of approximately $0.3 million, which is reflected as a reduction of additional paid-in capital on the consolidated statements of shareholders’ equity.

On January 10, 2022, the Company completed an underwritten offering of 3,000,000 shares of our common stock, at a price to the public of $20.50 per share. The gross proceeds to the Company from the offering were $61.5 million, before

deducting underwriting discounts and commissions, a structuring fee and offering expenses payable by the Company. In connection with the offering, the underwriters were granted an over-allotment option to purchase up to an additional 450,000 shares of the Company’s common stock. On January 14, 2022, the underwriters partially exercised the over-allotment option with respect to 291,832 shares of common stock, which was completed on January 19, 2022. The underwriting commissions of approximately $3.5 million are reflected as a reduction of additional paid-in capital in the first quarter of fiscal year 2022. The Company incurred approximately $1.0 million of expenses in connection with the offering. After giving effect to the partial exercise of the over-allotment option, the total number of shares sold by the Company in the public offering was 3,291,832 shares and total gross proceeds, before deducting underwriting discounts and commissions, a structuring fee and other offering expenses payable by the Company, were approximately $67.5 million. The net proceeds to the Company totaled approximately $63.0 million.

Pursuant to the Articles of Amendment, dated March 10, 2022, the Company increased the number of authorized shares of common stock to 50,000,000 shares at $0.01 par value per share.

Shelf Registration Statement

On April 5, 2022, the Company filed a shelf registration statement on Form S-3 (File No. 333-264144) (the “Shelf Registration Statement”), which was declared effective on April 18, 2022. Under the Shelf Registration Statement, the Company may, from time to time, issue and sell up to $1.0 billion of the Company’s common stock, preferred stock, debt securities, warrants and rights (including as part of a unit) to purchase shares of the Company’s common stock or preferred stock.

At-the-Market Offering Program (“ATM Program”)

On April 5, 2022, the Company entered into an Open Market Sales Agreement (the “Sales Agreement”) with Jefferies LLC and JMP Securities LLC, as Sales Agents, under which the Company may, from time to time, offer and sell shares of common stock, having an aggregate offering price of up to $75.0 million. Under the terms of the Sales Agreement, the Company has agreed to pay the Sales Agents a commission of up to 3.0% of the gross proceeds from each sale of common stock sold through the Sales Agents. Sales of common stock, if any, may be made in transactions that are deemed to be “at-the-market” offerings, as defined in Rule 415(a)(4) promulgated under the Securities Act of 1933, as amended (the “Securities Act”). During the three and nine months ended September 30, 2022, the Company sold an aggregate of 506,466 and 621,398 shares of the Company’s common stock under the Sales Agreement at an average price of $18.35 and $18.30 per share, respectively. The sales generated net proceeds of approximately $9.0 million and $10.4 million for the three and nine months ended September 30, 2022, respectively.

As of September 30, 2022, the shares of common stock sold under the ATM Program are the only offerings that have been initiated under the Shelf Registration Statement.

Equity Incentive Plan

The Company has established an equity incentive compensation plan (the “2020 Plan”). The 2020 Plan authorizes stock options, stock appreciation rights, restricted stock, stock bonuses, stock units and other forms of awards granted or denominated in the Company’s common stock or units of common stock. The 2020 Plan retains flexibility to offer competitive incentives and to tailor benefits to specific needs and circumstances. Any award may be structured to be paid or settled in cash. The Company has, and currently intends to continue to grant stock options to participants in the 2020 Plan, but it may also grant any other type of award available under the 2020 Plan in the future. Persons eligible to receive awards under the 2020 Plan include officers or employees of the Company or any of its subsidiaries, directors of the Company, employees of the Manager and certain directors and consultants and other service providers to the Company or any of its subsidiaries.

During the first quarter of 2022, the Company’s Board of Directors approved grants of restricted stock and stock options to the Company’s directors and officers, as well as employees of the Manager. In January 2022, the Company granted an aggregate of 8,296 shares of restricted stock and 742,000 stock options to certain of our officers and other eligible persons. The restricted stock granted in January 2022 under the 2020 Plan vests over a four-year period with approximately 33% vesting on each of the second, third and fourth anniversaries of the vesting commencement date. The stock options granted in January 2022 under the 2020 Plan have a strike price of $20.18 and contain vesting periods that vary from immediately vested to vesting over a four-year period. As of September 30, 2022, there were 2,350,815 shares of common stock granted under the 2020 Plan, underlying 2,287,472 options and 63,343 shares of restricted stock.

As of September 30, 2022, the maximum number of shares of the Company’s common stock that may be delivered pursuant to awards under the 2020 Plan (the “Share Limit”) equals 2,793,288 shares, which is an increase of 50,647 shares compared to June 30, 2022. This Share Limit increased in the third quarter of 2022 under the evergreen provision in the 2020 Plan in connection with the shares issued under the ATM Program during such time. Shares that are subject to or underlie awards that expire or for any reason are cancelled, terminated, forfeited, fail to vest, or for any other reason are not paid or delivered under the 2020 Plan will not be counted against the Share Limit and will again be available for subsequent awards under the 2020 Plan.

The following table summarizes the (i) non-vested options granted, (ii) vested options granted and (iii) forfeited options granted for the Company’s directors and officers and employees of the Manager as of September 30, 2022 and December 31, 2021:


	As of September 30, 2022	As of December 31, 2021
Non-vested	300,652	183,114
Vested	2,068,469	1,449,518
Forfeited	(82,549)	(28,396)
Balance	2,286,572	1,604,236

The Company uses the Black-Scholes option pricing model to value stock options in determining the stock-based compensation expense. Forfeitures are recognized as they occur. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the date of grant. The expected dividend yield was based on the Company’s expected dividend yield at grant date. Expected volatility is based on the estimated average volatility of similar companies due to the lack of historical volatilities of the Company’s common stock. Restricted stock grant expense is based on the Company’s stock price at the time of the grant and amortized over the vesting period. The stock-based compensation expense for the Company was approximately $0.1 million and $1.2 million for the three and nine months ended September 30, 2022, respectively, and approximately $0.1 million and $1.7 million for the three and nine months ended September 30, 2021, respectively.

The following table presents the assumptions used in the option pricing model of options granted under the 2020 Plan:


Assumptions			Range
Expected volatility			40% - 50%
Expected dividend yield			10% - 20%
Risk-free interest rate			0.5% - 2.0%
Expected forfeiture rate			0%

The following tables summarize stock option activity during the three and nine months ended September 30, 2022 and 2021:


	Three months ended September 30, 2022	Weighted-average grant date fair value per option
Balance as of June 30, 2022	2,316,106	$	1.21
Granted	—	—
Exercised	(5,511)	0.90
Forfeited	(24,023)	1.20
Balance as of September 30, 2022	2,286,572	$	1.21


	Three months ended September 30, 2021	Weighted-average grant date fair value per option
Balance as of June 30, 2021	1,613,098	$	1.08
Granted	—	—
Exercised	—	—
Forfeited	(8,862)	0.90
Balance as of September 30, 2021	1,604,236	$	1.08


	Nine months ended September 30, 2022	Weighted-average grant date fair value per option
Balance as of December 31, 2021	1,604,236	$	1.08
Granted	742,000	1.46
Exercised	(5,511)	0.90
Forfeited	(54,153)	1.12
Balance as of September 30, 2022	2,286,572	$	1.21


	Nine months ended September 30, 2021	Weighted-average grant date fair value per option
Balance as of December 31, 2020	926,898	$	0.91
Granted	689,200	1.31
Exercised	—	—
Forfeited	(11,862)	1.01
Balance as of September 30, 2021	1,604,236	$	1.08

The following table summarizes the (i) non-vested restricted stock granted, (ii) vested restricted stock granted and (iii) forfeited restricted stock granted for the Company’s directors and officers and employees of the Manager as of September 30, 2022 and December 31, 2021:


	As of September 30, 2022	As of December 31, 2021
Non-vested	64,581	56,285
Vested	—	—
Forfeited	(1,238)	—
Balance	63,343	56,285

The fair value of the Company’s restricted stock awards is based on the Company’s stock price on the date of grant. The following tables summarize the restricted stock activity during the three and nine months ended September 30, 2022 and 2021:


			Three months ended September 30, 2022
Balance as of June 30, 2022			64,581
Granted			—
Exercised			—
Forfeited			(1,238)
Balance as of September 30, 2022			63,343


			Three months ended September 30, 2021
Balance as of June 30, 2021			—
Granted			56,285
Exercised			—
Forfeited			—
Balance as of September 30, 2021			56,285


			Nine months ended September 30, 2022
Balance as of December 31, 2021			56,285
Granted			8,296
Exercised			—
Forfeited			(1,238)
Balance as of September 30, 2022			63,343


			Nine months ended September 30, 2021
Balance as of December 31, 2020			—
Granted			56,285
Exercised			—
Forfeited			—
Balance as of September 30, 2021			56,285

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-URI https://asc.fasb.org/topic&trid=2208762

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+ Details

EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2022

Earnings Per Share [Abstract]

EARNINGS PER SHARE

The following information sets forth the computations of basic and diluted weighted average earnings per common share for the three and nine months ended September 30, 2022 and 2021:


	Three months ended September 30,				Nine months ended September 30,
	2022		2021		2022		2021
Net income	$	11,480,519	$	7,930,680	$	32,994,312	$	13,959,222
Divided by:
Basic weighted average shares of common stock outstanding	20,019,760		16,402,984		19,687,730		12,368,977
Diluted weighted average shares of common stock outstanding	20,112,033		16,776,648		19,780,003		12,742,641
Basic weighted average earnings per common share	$	0.57	$	0.48	$	1.68	$	1.13
Diluted weighted average earnings per common share	$	0.57	$	0.47	$	1.67	$	1.10

INCOME TAX	9 Months Ended
INCOME TAX	Sep. 30, 2022
Income Tax Disclosure [Abstract]
INCOME TAX	INCOME TAX A TRS is an entity taxed as a corporation that has not elected to be taxed as a REIT, in which a REIT directly or indirectly holds equity, and that has made a joint election with such REIT to be treated as a TRS. A TRS generally may engage in any business, including investing in assets and engaging in activities that could not be held or conducted directly by the Company without jeopardizing its qualification as a REIT. A TRS is subject to applicable United States federal, state and local income tax on its taxable income. In addition, as a REIT, the Company also may be subject to a 100% excise tax on certain transactions between it and its TRS that are not conducted on an arm’s-length basis. The income tax provision is included in the line item income tax expense, including excise tax in the consolidated statements of operations included in these unaudited interim consolidated financial statements. The income tax provision for the Company was approximately $0.2 million and $0.3 million for the three and nine months ended September 30, 2022, respectively. The income tax expense for the three and nine months ended September 30, 2022 primarily relates to activities of the Company’s taxable REIT subsidiary. The Company did not incur any tax expense for the three and nine months ended September 30, 2021. For the three and nine months ended September 30, 2022 and 2021, the Company incurred no expense for United States federal excise tax. Excise tax represents a 4% tax on the sum of a portion of the Company’s ordinary income and net capital gains not distributed during the period. If it is determined that an excise tax liability exists for the current period, the Company will accrue excise tax on estimated excess taxable income as such taxable income is earned. The expense is calculated in accordance with applicable tax regulations. The Company does not have any unrecognized tax benefits and the Company does not expect that to change in the next 12 months.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

FAIR VALUE

9 Months Ended

Sep. 30, 2022

Fair Value Disclosures [Abstract]

FAIR VALUE

Loans Held for Investment

The Company’s loans are typically valued using a yield analysis, which is typically performed for non-credit impaired loans to borrowers where the Company does not own a controlling equity position. To determine fair value using a yield analysis, a current price is imputed for the loan based upon an assessment of the expected market yield for a similarly structured loan with a similar level of risk. In the yield analysis, the Company considers the current contractual interest rate, the maturity and other terms of the loan relative to risk of the company and the specific loan. A key determinant of risk, among other things, is the leverage through the loan relative to the enterprise value of the borrower. As loans held by the Company are substantially illiquid with no active loan market, the Company depends on primary market data, including newly funded loans, as well as secondary market data with respect to high yield debt instruments and syndicated loans, as inputs in determining the appropriate market yield, as applicable.

The following tables present fair value measurements of loans held at fair value as of September 30, 2022 and December 31, 2021:


	Fair Value Measurement as of September 30, 2022
	Total		Level 1		Level 2		Level 3
Loans held at fair value	$	94,076,146	$	—	$	—	$	94,076,146
Total	$	94,076,146	$	—	$	—	$	94,076,146


	Fair Value Measurement as of December 31, 2021
	Total		Level 1		Level 2		Level 3
Loans held at fair value	$	77,096,319	$	—	$	—	$	77,096,319
Total	$	77,096,319	$	—	$	—	$	77,096,319

The following table presents changes in loans that use Level 3 inputs as of and for the nine months ended September 30, 2022:


	Nine months ended September 30, 2022
Total loans using Level 3 inputs at December 31, 2021	$	77,096,319
Change in unrealized (losses) gains on loans at fair value, net	(1,561,890)
Additional fundings	18,737,988
Original issue discount and other discounts, net of costs	(479,276)
Loan repayments	(1,960,000)
Loan amortization payments	(1,089,776)
Accretion of original issue discount	1,076,212
PIK interest	2,256,569
Total loans using Level 3 inputs at September 30, 2022	$	94,076,146

The change in unrealized losses included in the unaudited interim consolidated statement of operations attributable to loans held at fair value, categorized as Level 3, held at September 30, 2022 is $(1,561,890).

The following tables summarize the significant unobservable inputs the Company used to value the loans categorized within Level 3 as of September 30, 2022 and December 31, 2021. The tables are not intended to be all-inclusive, but instead capture the significant unobservable inputs relevant to the Company’s determination of fair values.

As of September 30, 2022

Unobservable Input

Fair Value

Primary Valuation Techniques

Input

Estimated Range

Weighted Average

Senior term loans

94,076,146

Yield analysis

Market yield

17.92% - 26.48%

19.25

Total Investments

94,076,146

As of December 31, 2021

Unobservable Input

Fair Value

Primary Valuation Techniques

Input

Estimated Range

Weighted Average

Senior term loans

77,096,319

Yield analysis

Market yield

17.71% - 20.96%

18.22

Total Investments

77,096,319

Changes in market yields may change the fair value of certain of the Company’s loans. Generally, an increase in market yields may result in a decrease in the fair value of certain of the Company’s loans.

Due to the inherent uncertainty of determining the fair value of loans that do not have a readily available market value, the fair value of the Company’s loans may fluctuate from period to period. Additionally, the fair value of the Company’s loans may differ significantly from the values that would have been used had a ready market existed for such loans and may differ materially from the values that the Company may ultimately realize. Further, such loans are generally subject to legal and other restrictions on resale or otherwise are less liquid than publicly traded securities. If the Company was required to liquidate a loan in a forced or liquidation sale, it could realize significantly less than the value at which the Company has recorded it.

In addition, changes in the market environment and other events that may occur over the life of the loans may cause the gains or losses ultimately realized on these loans to be different than the unrealized gains or losses reflected in the valuations currently assigned.

Investment in Marketable Securities

As of September 30, 2022, the Company’s portfolio did not include any debt securities. As of December 31, 2021, the Company’s portfolio included one investment in debt securities held at fair value of approximately $15.9 million. The Company sold the investment in debt securities in March of 2022, which was previously designated as available-for-sale as of December 31, 2021. For the nine months ended September 30, 2022, the realized loss on the sale of debt securities was approximately $0.2 million.

The following table presents changes in debt securities held at fair value as of and for the nine months ended September 30, 2022:


	Principal		Original Issue Discount		Unrealized Gains (Losses)		Fair Value

Total debt securities held at fair value at December 31, 2021	$	15,000,000	$	1,050,000	$	(168,750)	$	15,881,250
Realized (losses) gains on securities at fair value, net	—		(150,000)		—		(150,000)
Change in accumulated other comprehensive income	—		—		168,750		168,750
Sale of securities	(15,000,000)		(900,000)		—		(15,900,000)
Total debt securities held at fair value at September 30, 2022	$	—	$	—	$	—	$	—

The following table presents fair value measurements of debt securities held at fair value as of September 30, 2022 and December 31, 2021:

Fair Value Measurement as of September 30, 2022

Total

Level 1

Level 2

Level 3

Debt securities held at fair value

—

Total

—


	Fair Value Measurement as of December 31, 2021
	Total		Level 1		Level 2		Level 3
Debt securities held at fair value	$	15,881,250	$	—	$	15,881,250	$	—
Total	$	15,881,250	$	—	$	15,881,250	$	—

Fair Value of Financial Instruments

GAAP requires disclosure of fair value information about financial instruments, whether or not recognized at fair value in the balance sheet, for which it is practicable to estimate that value.

The following table details the book value and fair value of the Company’s financial instruments not recognized at fair value in the balance sheet:


	As of September 30, 2022
	Carrying Value		Fair Value
Financial assets:
Cash and cash equivalents	$	36,319,623	$	36,319,623
Loans held for investment at carrying value	$	339,164,030	$	334,334,871
Loan receivable at carrying value	$	2,220,466	$	2,147,890
Financial liabilities:
Senior unsecured notes, net	$	96,964,872	$	85,034,060

Estimates of fair value for cash and cash equivalents are measured using observable, quoted market prices, or Level 1 inputs. The Company’s loans held for investment are measured using unobservable inputs, or Level 3 inputs. The Company’s investments in debt securities are measured using readily available quoted prices for similar assets, or Level 2 inputs. The fair value of the Company’s unsecured senior notes is estimated by discounting expected cash flows using readily available quoted prices for similar debt, or Level 2 inputs.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

RELATED PARTY TRANSACTIONS

9 Months Ended

Sep. 30, 2022

RELATED PARTY TRANSACTIONS

Management Agreement

Pursuant to the Management Agreement, the Manager manages the loans and day-to-day operations of the Company, subject at all times to the further terms and conditions set forth in the Management Agreement and such further limitations or parameters as may be imposed from time to time by the Company’s Board.

The Manager receives base management fees (the “Base Management Fee”) that are calculated and payable quarterly in arrears, in an amount equal to 0.375% of the Company’s Equity (as defined below), subject to certain adjustments, less 50% of the aggregate amount of any other fees (“Outside Fees”), including any agency fees relating to our loans, but excluding the Incentive Compensation (as defined below) and any diligence fees paid to and earned by the Manager and paid by third parties in connection with the Manager’s due diligence of potential loans.

Prior to the IPO, the quarterly base management fee was equal to 0.4375% of the Company’s Equity, subject to certain adjustments, less 100% of the aggregate amount of any Outside Fees, including any agency fees relating to the Company’s loans, but excluding the Incentive Compensation and any diligence fees paid to and earned by the Manager and paid by third parties in connection with the Manager’s due diligence of potential loans.

In addition to the Base Management Fee, the Manager is entitled to receive incentive compensation (the “Incentive Compensation” or “Incentive Fees”) under the Management Agreement. Under the Management Agreement, the Company pays Incentive Fees to the Manager based upon the Company’s achievement of targeted levels of Core Earnings. “Core Earnings” is defined in the Management Agreement as, for a given period means the net income (loss) for such period, computed in accordance with GAAP, excluding (i) non-cash equity compensation expense, (ii) the Incentive Compensation, (iii) depreciation and amortization, (iv) any unrealized gains or losses or other non-cash items that are included in net income for the applicable reporting period, regardless of whether such items are included in other comprehensive income or loss, or in net income and (v) one-time events pursuant to changes in GAAP and certain non-cash charges, in each case after discussions between the Manager and the Company’s independent directors and approved by a majority of the independent directors.

The Incentive Compensation for the three and nine months ended September 30, 2022 was approximately $2.9 million and $9.3 million, respectively. The Incentive Compensation for the three and nine months ended September 30, 2021 was approximately $1.8 million and $3.9 million, respectively.

The Company shall pay all of its costs and expenses and shall reimburse the Manager or its affiliates for expenses of the Manager and its affiliates paid or incurred on behalf of the Company, excepting only those expenses that are specifically the responsibility of the Manager pursuant to the Management Agreement. With respect to certain office expenses incurred by the Manager on behalf of the Company and other funds managed by the Manager or its affiliates, such as rent, the Manager determines each fund’s pro rata portion of such expenses based on the fair value of the fund’s assets under

management, excluding cash and cash equivalents, as a percentage of the total assets under management by all such related funds.

The following table summarizes the related party costs incurred by the Company for the three and nine months ended September 30, 2022 and 2021:


	Three months ended September 30,				Nine months ended September 30,
	2022		2021		2022		2021
Affiliate Costs
Management fees	$	1,318,563	$	1,030,718	$	3,869,023	$	2,301,924
Less: outside fees earned	(432,426)		(256,989)		(1,307,969)		(677,439)
Base management fees	886,137		773,729		2,561,054		1,624,485
Incentive fees earned	2,938,598		1,769,207		9,312,462		3,873,984
General and administrative expenses reimbursable to Manager	910,243		625,711		2,790,846		1,415,217
Total	$	4,734,978	$	3,168,647	$	14,664,362	$	6,913,686

Amounts payable to the Company’s Manager as of September 30, 2022 and December 31, 2021 were approximately $5.2 million and $4.1 million, respectively.

Due to Affiliate

Amounts due to an affiliate of the Company as of September 30, 2022 and December 31, 2021 were $17,640 and $0, respectively.

Investments in Loans

From time to time, the Company may co-invest with other investment vehicles managed by the Company’s Manager or its affiliates and their portfolio companies, including by means of splitting loans, participating in loans or other means of syndicating loans. The Company is not obligated to provide, nor has it provided, any financial support to the other managed investment vehicles. As such, the Company’s risk is limited to the carrying value of its investment in any such loan. As of September 30, 2022, there were five co-invested loans held by the Company and an affiliate of the Company.

In March 2022, the Company entered into the fourth amendment of the Amended and Restated Credit Agreement with Public Company F to, among other things, increase the total loan commitments by $100.0 million, with approximately (i) $26.6 million of the new loan commitments allocated to us; (ii) $15.0 million of the new loan commitments allocated to Flower Loan Holdco LLC, an affiliated entity in which Leonard Tannenbaum, our Chief Executive Officer and Chairman, is the majority ultimate beneficial owner; and (iii) the remaining loan commitments allocated to third-party lenders by the third-party agent.

In connection with investments in loans, the Company may receive the option to assign the right (the “Assigned Right”) to acquire warrants and/or equity of the borrower. The Company may sell the Assigned Right, and the sale may be to an affiliate of the Company. During the three and nine months ended September 30, 2022, the Company neither received nor sold any Assigned Right. During the three months ended September 30, 2021, the Company neither received nor sold any Assigned Right. During the nine months ended September 30, 2021, the Company sold approximately $2.3 million of Assigned Rights to an affiliate which are accounted for as additional original issue discount and accreted over the life of the loans.

Secured Revolving Credit Facility From Affiliate

In April 2022, the Company terminated the AFCF Revolving Credit Facility. Refer to Note 9 to the Company’s unaudited consolidated financial statements for more information.

DIVIDENDS AND DISTRIBUTIONS

9 Months Ended

Sep. 30, 2022

DIVIDENDS AND DISTRIBUTIONS [Abstract]

DIVIDENDS AND DISTRIBUTIONS

The following table summarizes the Company’s dividends declared during the nine months ended September 30, 2022 and 2021:


	Record Date	Payment Date	Common Share Distribution Amount		Taxable Ordinary Income		Return of Capital		Section 199A Dividends

Regular cash dividend	3/15/2021	3/31/2021	$	0.36	$	0.36	$	—	$	0.36
Regular cash dividend	6/15/2021	6/30/2021	$	0.38	$	0.38	$	—	$	0.38
Regular cash dividend	9/30/2021	10/15/2021	$	0.43	$	0.43	$	—	$	0.43
2021 Period Subtotal			$	1.17	$	1.17	$	—	$	1.17
Regular cash dividend	3/31/2022	4/15/2022	$	0.55	$	0.55	$	—	$	0.55
Regular cash dividend	6/30/2022	7/15/2022	$	0.56	$	0.56	$	—	$	0.56
Regular cash dividend	9/30/2022	10/14/2022	$	0.56	$	0.56	$	—	$	0.56
2022 Period Subtotal			$	1.67	$	1.67	$	—	$	1.67

SUBSEQUENT EVENTS	9 Months Ended
SUBSEQUENT EVENTS	Sep. 30, 2022
Subsequent Events [Abstract]
Subsequent Events	SUBSEQUENT EVENTS The Company has evaluated subsequent events through the date the financial statements were available to be issued. There were no material subsequent events, other than those described below, that required disclosure in these financial statements. Subsequent to the end of the third quarter, the Company increased its commitment to one borrower in the amount of $30.0 million, were repaid $86.6 million in full by Public Company F, reduced its commitment to one borrower by $19.5 million, and funded approximately $9.2 million of principal amount of new and existing commitments. In October 2022, the Credit Agreement with the Subsidiary of Public Company H was amended to, among other things, increase the total loan commitment by $50.0 million, of which $30.0 million of the new loan commitment was allocated to the Company and $7.8 million was funded by the Company. As part of the expansion, the interest rate increased from a fixed rate of 9.8% to U.S. Prime plus 5.8%, subject to a Prime floor of 5.5%. In October 2022, Public Company F repaid its loan in full. The loan was comprised of three tranches with original maturity dates of May 30, 2023, April 28, 2023 and August 28, 2023. The aggregate amount of outstanding principal on the date of repayment was $86.6 million. The Company received a prepayment premium and make-whole premium of approximately $0.1 million and $0.6 million, respectively. Following the repayment of Public Company F, six of the Company’s loans have repaid prior to maturity since the Company’s IPO in March 2021. In November 2022, the Company and Private Company L agreed to reduce the total loan commitment under the credit facility from $82.5 million to $63.0 million.

SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
SIGNIFICANT ACCOUNTING POLICIES (Policies)	Sep. 30, 2022
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited interim consolidated financial statements and related notes have been prepared on the accrual basis of accounting in conformity with generally accepted accounting principles in the United States (“GAAP”) and in conformity with the rules and regulations of the SEC applicable to interim financial information. These unaudited interim consolidated financial statements reflect all adjustments that, in the opinion of management, are considered necessary for a fair statement of the Company’s results of operations and financial condition as of and for the periods presented. The current period’s results of operations will not necessarily be indicative of results that ultimately may be achieved for the year ending December 31, 2022.
Investment in Marketable Securities	Investment in Marketable SecuritiesMarketable debt securities in the Company’s portfolio are recorded at fair value and unrealized gains or losses are excluded from net income on the consolidated statement of operations and reported as a component of accumulated other comprehensive income within shareholders’ equity.
Use of Estimates in the Preparation of Financial Statements	Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Actual results could differ from those estimates. Significant estimates include the valuation of loans held for investment at fair value and current expected credit losses (“CECL”).
Recent Accounting Pronouncements	Recent Accounting PronouncementsIn March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued because of reference rate reform. ASU No. 2020-04 is effective for all entities as of March 12, 2020 through December 31, 2022. In January 2021, the FASB issued ASU No. 2021-01, Reference Rate Reform (Topic 848): Scope, which clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. ASU No. 2021-01 is effective immediately for all entities. An entity may elect to apply the amendments on a full retrospective basis as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or on a prospective basis to new modifications from any date within an interim period that includes or is subsequent to the date of the issuance of a final update, up to the date that financial statements are available to be issued. If an entity elects to apply any of the amendments for an eligible hedging relationship, any adjustments as a result of those elections must be reflected as of the date the entity applies the election. They do not apply to contract modifications made after December 31, 2022, new hedging relationships entered into after December 31, 2022, and existing hedging relationships evaluated for effectiveness in periods after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that apply certain optional expedients in which the accounting effects are recorded through the end of the hedging relationship including periods after December 31, 2022. The Company h

LOANS HELD FOR INVESTMENT AT FAIR VALUE (Tables)

9 Months Ended

Sep. 30, 2022

LOANS HELD FOR INVESTMENT AT FAIR VALUE [Abstract]

Loans Held at Fair Value

The following tables summarize the Company’s loans held at fair value as of September 30, 2022 and December 31, 2021:


	As of September 30, 2022
	Fair Value (1)		Carrying Value (2)		Outstanding Principal (2)		Weighted Average Remaining Life (Years) (3)

Senior term loans	$	94,076,146	$	93,454,875	$	95,575,523	1.5
Total loans held at fair value	$	94,076,146	$	93,454,875	$	95,575,523	1.5


	As of December 31, 2021
	Fair Value (1)		Carrying Value (2)		Outstanding Principal (2)		Weighted Average Remaining Life (Years) (3)

Senior term loans	$	77,096,319	$	74,913,157	$	77,630,742	2.2
Total loans held at fair value	$	77,096,319	$	74,913,157	$	77,630,742	2.2

(1)Refer to Note 14 to the Company's unaudited consolidated financial statements.

(2)The difference between the Carrying Value and the Outstanding Principal amount of the loans consists of unaccreted original issue discount (“OID”) and loan origination costs.

(3)Weighted average remaining life is calculated based on the fair value of the loans as of September 30, 2022 and December 31, 2021.

Changes in Loans Held at Fair Value

The following table presents changes in loans held at fair value as of and for the nine months ended September 30, 2022:


	Principal		Original Issue Discount		Unrealized Gains (Losses)		Fair Value

Total loans held at fair value at December 31, 2021	$	77,630,742	$	(2,717,584)	$	2,183,161	$	77,096,319
Change in unrealized (losses) gains on loans at fair value, net	—		—		(1,561,890)		(1,561,890)
New fundings	18,737,988		(479,276)		—		18,258,712
Loan repayments	(1,960,000)		—		—		(1,960,000)
Loan amortization payments	(1,089,776)		—		—		(1,089,776)
Accretion of original issue discount	—		1,076,212		—		1,076,212
PIK interest	2,256,569		—		—		2,256,569
Total loans held at fair value at September 30, 2022	$	95,575,523	$	(2,120,648)	$	621,271	$	94,076,146

Loans Held at Fair Value Portfolio

A more detailed listing of the Company’s loans held at fair value portfolio based on information available as of September 30, 2022 is as follows:


	Collateral Location	Collateral Type (1)	Fair Value (2)		Carrying Value (3)		Outstanding Principal (3)		Interest Rate			Maturity Date (4)	Payment Terms (5)

Private Co. A	AZ, MI, MD, MA	C, D	$	78,444,211	$	78,055,662	$	79,772,976	15.5	%	(6)	5/8/2024	P/I
Public Co. A	NV	C	1,174,066		1,198,639		1,198,639		15.0	%	(7)	9/30/2023	I/O
Private Co. B	MI	C, D	14,457,869		14,200,574		14,603,908		18.7	%	(8)	9/1/2023	P/I
Total loans held at fair value			$	94,076,146	$	93,454,875	$	95,575,523

(1)C = Cultivation Facilities, D = Dispensary/Retail Facilities.

(2)Refer to Note 14 to the Company’s unaudited consolidated financial statements.

(3)The difference between the Carrying Value and the Outstanding Principal amount of the loans consists of OID and loan origination costs.

(5)I/O = interest-only, P/I = principal and interest. P/I loans may include interest-only periods for a portion of the loan term.

(6)Base weighted interest rate of 12.8% and payment-in-kind (“PIK”) interest rate of 2.7%.

(7)Base interest rate of 7.5% and PIK interest rate of 7.5%. As amended, cash interest is deferred from July 1, 2022 until November 1, 2022.

(8)Base weighted interest rate of 14.7% and PIK interest rate of 4.0%.

LOANS HELD FOR INVESTMENT AT CARRYING VALUE (Tables)

9 Months Ended

Sep. 30, 2022

LOANS HELD FOR INVESTMENT AT CARRYING VALUE [Abstract]

Loans Held at Carrying Value

The following tables summarize the Company’s loans held at carrying value as of September 30, 2022 and December 31, 2021:


	As of September 30, 2022
	Outstanding Principal (1)		Original Issue Discount		Carrying Value (1)		Weighted Average Remaining Life (Years) (2)

Senior term loans	$	349,337,390	$	(10,173,360)	$	339,164,030	2.7
Total loans held at carrying value	$	349,337,390	$	(10,173,360)	$	339,164,030	2.7


	As of December 31, 2021
	Outstanding Principal (1)		Original Issue Discount		Carrying Value (1)		Weighted Average Remaining Life (Years) (2)

Senior term loans	$	270,841,715	$	(13,678,219)	$	257,163,496	3.4
Total loans held at carrying value	$	270,841,715	$	(13,678,219)	$	257,163,496	3.4

(1)The difference between the Carrying Value and the Outstanding Principal amount of the loans consists of unaccreted OID and loan origination costs.

(2)Weighted average remaining life is calculated based on the carrying value of the loans as of September 30, 2022 and December 31, 2021.

Changes in Loans Held at Carrying Value

The following table presents changes in loans held at carrying value as of and for the nine months ended September 30, 2022:


	Principal		Original Issue Discount		Carrying Value

Total loans held at carrying value at December 31, 2021	$	270,841,715	$	(13,678,219)	$	257,163,496
New fundings	139,571,920		(5,128,400)		134,443,520
Accretion of original issue discount	—		8,633,259		8,633,259
Loan repayments	(52,014,211)		—		(52,014,211)
Sale of loans	(10,000,000)		—		(10,000,000)
PIK interest	2,768,252		—		2,768,252
Loan amortization payments	(1,830,286)		—		(1,830,286)
Total loans held at carrying value at September 30, 2022	$	349,337,390	$	(10,173,360)	$	339,164,030

Loans Held at Carrying Value Portfolio

A more detailed listing of the Company’s loans held at carrying value portfolio based on information available as of September 30, 2022 is as follows:


	Collateral Location	Collateral Type (1)	Outstanding Principal (2)		Original Issue Discount		Carrying Value (2)		Interest Rate			Maturity Date (3)	Payment Terms (4)

Private Co. C	PA	C, D	$	24,159,078	$	(610,238)	$	23,548,840	18.5	%	(5)	12/01/2025	P/I
Sub. of Private Co. G	NJ, PA	C, D	67,912,444		(1,953,328)		65,959,116		16.5	%	(6)	05/01/2026	P/I
Public Co. F	AR, AZ, IL, FL, NV, OH, MA, MI, MD, NV	C, D	86,600,000		(854,133)		85,745,867		8.6	%	(7)	05/30/2023	I/O
Sub. of Private Co. H	IL	C	5,781,250		(46,712)		5,734,538		15.0	%	(8)	05/11/2023	I/O
Private Co. K	MA	C, D	10,765,379		(915,708)		9,849,671		15.0	%	(9)	05/03/2027	P/I
Private Co. I	MD	C, D	10,550,781		(177,777)		10,373,004		17.6	%	(10)	08/01/2026	P/I
Private Co. J	MO	C, D	23,568,458		(573,986)		22,994,472		19.1	%	(11)	09/01/2025	P/I
Sub. of Public Co. H	CT, IA, IL, ME, MI, NJ, PA	C, D	60,000,000		(1,910,204)		58,089,796		9.8	%	(12)	01/01/2026	I/O
Private Co. L	MO, NJ, OH	C, D	50,000,000		(2,303,571)		47,696,429		12.0	%	(13)	05/01/2026	P/I
Sub. of Public Co. M	IL, MI, MA, NJ, OH, PA	C, D	10,000,000		(827,703)		9,172,297		9.5	%	(14)	08/27/2025	I/O
Total loans held at carrying value			$	349,337,390	$	(10,173,360)	$	339,164,030

(1)C = Cultivation Facilities, D = Dispensary/Retail Facilities.

(2)The difference between the Carrying Value and the Outstanding Principal amount of the loans consists of unaccreted OID and loan origination costs.

(4)I/O = interest-only, P/I = principal and interest. P/I loans may include interest-only periods for a portion of the loan term.

(5)Base interest rate of 9.0% plus Prime (Prime floor of 4.0%) and PIK interest rate of 4.0%.

(6)Base interest rate of 10.25% plus Prime (Prime floor of 4.5%).

(7)Base weighted average interest rate of 8.6%.

(8)Base interest rate of 15.0%.

(9)Base interest rate of 12.0% plus SOFR (SOFR floor of 1.0%)

(10)Base interest rate of 12.0% plus LIBOR (LIBOR floor of 1.0%) and PIK interest rate of 2.5%.

(11)Base interest rate of 12.0% plus LIBOR (LIBOR floor of 1.0%) and PIK interest rate of 4.0%.

(12)Base interest rate of 9.8%.

(13)Base interest rate of 12.0%.

(14)Base interest rate of 9.5%.

LOAN RECEIVABLE AT CARRYING VALUE (Tables)

9 Months Ended

Sep. 30, 2022

Receivables [Abstract]

Changes in Loans Receivable

The following table presents changes in loans receivable as of and for the nine months ended September 30, 2022:


	Principal		Original Issue Discount		Carrying Value

Total loan receivable at carrying value at December 31, 2021	$	2,533,266	$	(2,678)	$	2,530,588
Principal repayment of loans	(337,114)		—		(337,114)
Accretion of original issue discount	—		805		805
PIK interest	26,187		—		26,187
Total loan receivable at carrying value at September 30, 2022	$	2,222,339	$	(1,873)	$	2,220,466

CURRENT EXPECTED CREDIT LOSSES (Tables)

9 Months Ended

Sep. 30, 2022

Credit Loss [Abstract]

Financing Receivable, Allowance for Credit Loss


	Outstanding (1)		Unfunded (2)		Total
Balance at June 30, 2022	$	5,018,072	$	594,840	$	5,612,912
Provision for current expected credit losses	448,122		93,836		541,958
Write-offs	—		—		—
Recoveries	—		—		—
Balance at September 30, 2022	$	5,466,194	$	688,676	$	6,154,870


	Outstanding (1)		Unfunded (2)		Total
Balance at December 31, 2021	$	2,431,558	$	683,177	$	3,114,735
Provision for current expected credit losses	3,034,636		5,499		3,040,135
Write-offs	—		—		—
Recoveries	—		—		—
Balance at September 30, 2022	$	5,466,194	$	688,676	$	6,154,870

Financing Receivable Credit Quality Indicators


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

The risk ratings are primarily based on historical data as well as taking into account future economic conditions.


Risk Rating:	2022		2021		2020		Total
1	$	—	$	—	$	—	$	—
2	26,209,866		59,536,000		—		85,745,866
3	66,718,397		129,783,451		25,769,306		222,271,154
4	—		33,367,476		—		33,367,476
5	—		—		—		—
Total	$	92,928,263	$	222,686,927	$	25,769,306	$	341,384,496

INTEREST RECEIVABLE (Tables)

9 Months Ended

Sep. 30, 2022

Interest Receivable and Other Assets [Abstract]

Interest Receivable

The following table summarizes the interest receivable by the Company as of September 30, 2022 and December 31, 2021:


	As of September 30, 2022		As of December 31, 2021

Interest receivable	$	3,811,696	$	3,562,566
PIK receivable	490,284		554,357
Unused fees receivable	140,700		296,015
Total interest receivable	$	4,442,680	$	4,412,938

INTEREST RESERVE (Tables)

9 Months Ended

Sep. 30, 2022

INTEREST RESERVE [Abstract]

Changes in Interest Reserve

The following table presents changes in the interest reserve as of and for the three and nine months ended September 30, 2022 and 2021:


	Three months ended September 30,				Nine months ended September 30,
	2022		2021		2022		2021
Beginning reserves	$	5,186,615	$	5,547,863	$	4,782,271	$	1,325,750
New reserves	3,970,958		4,525,468		9,970,958		9,450,468
Reserves disbursed	(3,031,143)		(1,819,036)		(8,626,799)		(2,521,923)
Ending reserves	$	6,126,430	$	8,254,295	$	6,126,430	$	8,254,295

Debt (Tables)

9 Months Ended

Sep. 30, 2022

Debt Disclosure [Abstract]

Schedule of Maturities of Long-Term Debt

The 2027 Senior Notes are due on May 1, 2027. Scheduled principal payments on the 2027 Senior Notes as of September 30, 2022 are as follows:


	2027 Senior Notes
Year
2022 (remaining)	$	—
2023	—
2024	—
2025	—
2026	—
Thereafter	100,000,000
Total principal	$	100,000,000

Summary Of Interest Expense


	Three months ended September 30, 2022
	2027 Senior Notes		Revolving Credit Facility		AFCF Revolving Credit Facility		Total Borrowings

Interest expense	$	1,437,500	$	—	$	—	$	1,437,500
Unused fee expense	—		—		—		—
Amortization of deferred financing costs	166,458		40,130		—		206,588
Total interest expense	$	1,603,958	$	40,130	$	—	$	1,644,088


	Nine months ended September 30, 2022
	2027 Senior Notes		Revolving Credit Facility		AFCF Revolving Credit Facility		Total Borrowings

Interest expense	$	4,296,527	$	—	$	19,792	$	4,316,319
Unused fee expense	—		—		60,417		60,417
Amortization of deferred financing costs	492,216		67,610		154,645		714,471
Total interest expense	$	4,788,743	$	67,610	$	234,854	$	5,091,207

COMMITMENTS AND CONTINGENCIES (Tables)

9 Months Ended

Sep. 30, 2022

Commitments and Contingencies Disclosure [Abstract]

Commitments to Fund Various Senior Term Loans, Equipment Loans and Bridge Loans

As of September 30, 2022 and December 31, 2021, the Company had the following commitments to fund various investments:


	As of September 30, 2022		As of December 31, 2021

Total original loan commitments	$	502,184,382	$	419,198,125
Less: drawn commitments	(446,023,223)		(363,659,505)
Total undrawn commitments	$	56,161,159	$	55,538,620

SHAREHOLDERS' EQUITY (Tables)

9 Months Ended

Sep. 30, 2022

Equity [Abstract]

Share-based Payment Arrangement, Option, Activity


	As of September 30, 2022	As of December 31, 2021
Non-vested	300,652	183,114
Vested	2,068,469	1,449,518
Forfeited	(82,549)	(28,396)
Balance	2,286,572	1,604,236

Assumptions used in the Option Pricing Model of Options Granted

The following table presents the assumptions used in the option pricing model of options granted under the 2020 Plan:


Assumptions			Range
Expected volatility			40% - 50%
Expected dividend yield			10% - 20%
Risk-free interest rate			0.5% - 2.0%
Expected forfeiture rate			0%

Summary of Stock Option Activity

The following tables summarize stock option activity during the three and nine months ended September 30, 2022 and 2021:


	Three months ended September 30, 2022	Weighted-average grant date fair value per option
Balance as of June 30, 2022	2,316,106	$	1.21
Granted	—	—
Exercised	(5,511)	0.90
Forfeited	(24,023)	1.20
Balance as of September 30, 2022	2,286,572	$	1.21


	Three months ended September 30, 2021	Weighted-average grant date fair value per option
Balance as of June 30, 2021	1,613,098	$	1.08
Granted	—	—
Exercised	—	—
Forfeited	(8,862)	0.90
Balance as of September 30, 2021	1,604,236	$	1.08


	Nine months ended September 30, 2022	Weighted-average grant date fair value per option
Balance as of December 31, 2021	1,604,236	$	1.08
Granted	742,000	1.46
Exercised	(5,511)	0.90
Forfeited	(54,153)	1.12
Balance as of September 30, 2022	2,286,572	$	1.21


	Nine months ended September 30, 2021	Weighted-average grant date fair value per option
Balance as of December 31, 2020	926,898	$	0.91
Granted	689,200	1.31
Exercised	—	—
Forfeited	(11,862)	1.01
Balance as of September 30, 2021	1,604,236	$	1.08

Schedule of Nonvested Share Activity


	As of September 30, 2022	As of December 31, 2021
Non-vested	64,581	56,285
Vested	—	—
Forfeited	(1,238)	—
Balance	63,343	56,285

Restricted Stock Awards Activity


			Three months ended September 30, 2022
Balance as of June 30, 2022			64,581
Granted			—
Exercised			—
Forfeited			(1,238)
Balance as of September 30, 2022			63,343


			Three months ended September 30, 2021
Balance as of June 30, 2021			—
Granted			56,285
Exercised			—
Forfeited			—
Balance as of September 30, 2021			56,285


			Nine months ended September 30, 2022
Balance as of December 31, 2021			56,285
Granted			8,296
Exercised			—
Forfeited			(1,238)
Balance as of September 30, 2022			63,343


			Nine months ended September 30, 2021
Balance as of December 31, 2020			—
Granted			56,285
Exercised			—
Forfeited			—
Balance as of September 30, 2021			56,285

EARNINGS PER SHARE (Tables)

9 Months Ended

Sep. 30, 2022

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The following information sets forth the computations of basic and diluted weighted average earnings per common share for the three and nine months ended September 30, 2022 and 2021:


	Three months ended September 30,				Nine months ended September 30,
	2022		2021		2022		2021
Net income	$	11,480,519	$	7,930,680	$	32,994,312	$	13,959,222
Divided by:
Basic weighted average shares of common stock outstanding	20,019,760		16,402,984		19,687,730		12,368,977
Diluted weighted average shares of common stock outstanding	20,112,033		16,776,648		19,780,003		12,742,641
Basic weighted average earnings per common share	$	0.57	$	0.48	$	1.68	$	1.13
Diluted weighted average earnings per common share	$	0.57	$	0.47	$	1.67	$	1.10

FAIR VALUE (Tables)

9 Months Ended

Sep. 30, 2022

Fair Value Disclosures [Abstract]

Fair Value, Assets Measured on Recurring and Nonrecurring Basis

The following tables present fair value measurements of loans held at fair value as of September 30, 2022 and December 31, 2021:


	Fair Value Measurement as of September 30, 2022
	Total		Level 1		Level 2		Level 3
Loans held at fair value	$	94,076,146	$	—	$	—	$	94,076,146
Total	$	94,076,146	$	—	$	—	$	94,076,146


	Fair Value Measurement as of December 31, 2021
	Total		Level 1		Level 2		Level 3
Loans held at fair value	$	77,096,319	$	—	$	—	$	77,096,319
Total	$	77,096,319	$	—	$	—	$	77,096,319

Fair Value Measurements of Changes in Loans using Level 3 inputs

The following table presents changes in loans that use Level 3 inputs as of and for the nine months ended September 30, 2022:


	Nine months ended September 30, 2022
Total loans using Level 3 inputs at December 31, 2021	$	77,096,319
Change in unrealized (losses) gains on loans at fair value, net	(1,561,890)
Additional fundings	18,737,988
Original issue discount and other discounts, net of costs	(479,276)
Loan repayments	(1,960,000)
Loan amortization payments	(1,089,776)
Accretion of original issue discount	1,076,212
PIK interest	2,256,569
Total loans using Level 3 inputs at September 30, 2022	$	94,076,146

The following table presents changes in debt securities held at fair value as of and for the nine months ended September 30, 2022:


	Principal		Original Issue Discount		Unrealized Gains (Losses)		Fair Value

Total debt securities held at fair value at December 31, 2021	$	15,000,000	$	1,050,000	$	(168,750)	$	15,881,250
Realized (losses) gains on securities at fair value, net	—		(150,000)		—		(150,000)
Change in accumulated other comprehensive income	—		—		168,750		168,750
Sale of securities	(15,000,000)		(900,000)		—		(15,900,000)
Total debt securities held at fair value at September 30, 2022	$	—	$	—	$	—	$	—

Fair Value Measurement Inputs and Valuation Techniques

As of September 30, 2022

Unobservable Input

Fair Value

Primary Valuation Techniques

Input

Estimated Range

Weighted Average

Senior term loans

94,076,146

Yield analysis

Market yield

17.92% - 26.48%

19.25

Total Investments

94,076,146

As of December 31, 2021

Unobservable Input

Fair Value

Primary Valuation Techniques

Input

Estimated Range

Weighted Average

Senior term loans

77,096,319

Yield analysis

Market yield

17.71% - 20.96%

18.22

Total Investments

77,096,319

Fair Value, Liabilities Measured on Recurring and Nonrecurring Basis

The following table presents fair value measurements of debt securities held at fair value as of September 30, 2022 and December 31, 2021:

Fair Value Measurement as of September 30, 2022

Total

Level 1

Level 2

Level 3

Debt securities held at fair value

—

Total

—


	Fair Value Measurement as of December 31, 2021
	Total		Level 1		Level 2		Level 3
Debt securities held at fair value	$	15,881,250	$	—	$	15,881,250	$	—
Total	$	15,881,250	$	—	$	15,881,250	$	—

Book Value and Fair Value of the Financial Instruments

The following table details the book value and fair value of the Company’s financial instruments not recognized at fair value in the balance sheet:


	As of September 30, 2022
	Carrying Value		Fair Value
Financial assets:
Cash and cash equivalents	$	36,319,623	$	36,319,623
Loans held for investment at carrying value	$	339,164,030	$	334,334,871
Loan receivable at carrying value	$	2,220,466	$	2,147,890
Financial liabilities:
Senior unsecured notes, net	$	96,964,872	$	85,034,060

RELATED PARTY TRANSACTIONS (Tables)

9 Months Ended

Sep. 30, 2022

Schedule of Related Party Transactions

The following table summarizes the related party costs incurred by the Company for the three and nine months ended September 30, 2022 and 2021:


	Three months ended September 30,				Nine months ended September 30,
	2022		2021		2022		2021
Affiliate Costs
Management fees	$	1,318,563	$	1,030,718	$	3,869,023	$	2,301,924
Less: outside fees earned	(432,426)		(256,989)		(1,307,969)		(677,439)
Base management fees	886,137		773,729		2,561,054		1,624,485
Incentive fees earned	2,938,598		1,769,207		9,312,462		3,873,984
General and administrative expenses reimbursable to Manager	910,243		625,711		2,790,846		1,415,217
Total	$	4,734,978	$	3,168,647	$	14,664,362	$	6,913,686

DIVIDENDS AND DISTRIBUTIONS (Tables)

9 Months Ended

Sep. 30, 2022

DIVIDENDS AND DISTRIBUTIONS [Abstract]

Schedule of Dividends Payable

The following table summarizes the Company’s dividends declared during the nine months ended September 30, 2022 and 2021:


	Record Date	Payment Date	Common Share Distribution Amount		Taxable Ordinary Income		Return of Capital		Section 199A Dividends

Regular cash dividend	3/15/2021	3/31/2021	$	0.36	$	0.36	$	—	$	0.36
Regular cash dividend	6/15/2021	6/30/2021	$	0.38	$	0.38	$	—	$	0.38
Regular cash dividend	9/30/2021	10/15/2021	$	0.43	$	0.43	$	—	$	0.43
2021 Period Subtotal			$	1.17	$	1.17	$	—	$	1.17
Regular cash dividend	3/31/2022	4/15/2022	$	0.55	$	0.55	$	—	$	0.55
Regular cash dividend	6/30/2022	7/15/2022	$	0.56	$	0.56	$	—	$	0.56
Regular cash dividend	9/30/2022	10/14/2022	$	0.56	$	0.56	$	—	$	0.56
2022 Period Subtotal			$	1.67	$	1.67	$	—	$	1.67

ORGANIZATION (Details)	9 Months Ended
ORGANIZATION (Details)	Sep. 30, 2022 Segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of operating segments	1

LOANS HELD FOR INVESTMENT AT FAIR VALUE - Narrative (Details)	9 Months Ended	12 Months Ended
	Sep. 30, 2022 USD ($) loan	Dec. 31, 2021 USD ($) loan
LOANS HELD FOR INVESTMENT AT FAIR VALUE [Abstract]
Number of loans held for investment (in loans) \| loan	3	3
Loans held at fair value, aggregate commitments	$ 97,100,000	$ 75,900,000
Outstanding principal	95,575,523	$ 77,630,742
Loans held at fair value, funded of outstanding principal	18,700,000
Repayments of principal	$ 3,000,000.0

LOANS HELD FOR INVESTMENT AT FAIR VALUE - Loans Held at Fair Value (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Loans and Leases Receivable Disclosure [Line Items]
Fair Value	$ 94,076,146	$ 77,096,319
Carrying Value	93,454,875	74,913,157
Outstanding principal	$ 95,575,523	$ 77,630,742
Weighted Average Remaining Life (Years)	1 year 6 months	2 years 2 months 12 days
Senior term loans
Loans and Leases Receivable Disclosure [Line Items]
Fair Value	$ 94,076,146	$ 77,096,319
Carrying Value	93,454,875	74,913,157
Outstanding principal	$ 95,575,523	$ 77,630,742
Weighted Average Remaining Life (Years)	1 year 6 months	2 years 2 months 12 days

LOANS HELD FOR INVESTMENT AT FAIR VALUE - Changes in Loans Held at Fair Value (Details)	9 Months Ended
	Sep. 30, 2022 USD ($)
Principal
Total loans held at fair value, principal, beginning balance	$ 77,630,742
New fundings	18,737,988
Loan repayments, principal	(1,960,000)
Loan amortization payments, principal	(1,089,776)
PIK interest	2,256,569
Total loans held at fair value, principal, ending balance	95,575,523
Original Issue Discount
Loans held for at fair value, original issue discount, beginning balance	(2,717,584)
New fundings, original issue discount	(479,276)
Accretion of original issue discount, original issue discount	1,076,212
Loans held for at fair value, original issue discount, ending balance	(2,120,648)
Unrealized Gains (Losses)
Loans held at fair value, unrealized gains (losses), beginning balance	2,183,161
Change in unrealized gains (losses) on loans at fair value, net, unrealized gains (losses)	(1,561,890)
Loans held at fair value, unrealized gains (losses), ending balance	621,271
Fair Value
Total loans held at fair value, fair value, beginning balance	77,096,319
Change in unrealized gains (losses) on loans at fair value, net, fair value	(1,561,890)
New fundings, fair value	18,258,712
Loan repayments, fair value	(1,960,000)
Loan amortization payments, fair value	(1,089,776)
Accretion of original issue discount, fair value	1,076,212
PIK interest, fair value	2,256,569
Total loans held at fair value, fair value, ending balance	$ 94,076,146

LOANS HELD FOR INVESTMENT AT FAIR VALUE - Loans Held at Fair Value Portfolio (Details) - USD ($)	9 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Loans and Leases Receivable Disclosure [Line Items]
Fair Value	$ 94,076,146	$ 77,096,319
Carrying Value	93,454,875	74,913,157
Outstanding principal	$ 95,575,523	$ 77,630,742
Private Co. A \| Multi State
Loans and Leases Receivable Disclosure [Line Items]
Base interest rate	12.80%
PIK interest rate	2.70%
Private Co. A \| Multi State \| C, D
Loans and Leases Receivable Disclosure [Line Items]
Fair Value	$ 78,444,211
Carrying Value	78,055,662
Outstanding principal	$ 79,772,976
Interest Rate	15.50%
Public Co. A \| NV
Loans and Leases Receivable Disclosure [Line Items]
Base interest rate	14.70%
PIK interest rate	4.00%
Public Co. A \| NV \| C
Loans and Leases Receivable Disclosure [Line Items]
Fair Value	$ 1,174,066
Carrying Value	1,198,639
Outstanding principal	$ 1,198,639
Interest Rate	15.00%
Private Co. B \| MI
Loans and Leases Receivable Disclosure [Line Items]
Base interest rate	7.50%
PIK interest rate	7.50%
Private Co. B \| MI \| C, D
Loans and Leases Receivable Disclosure [Line Items]
Fair Value	$ 14,457,869
Carrying Value	14,200,574
Outstanding principal	$ 14,603,908
Interest Rate	18.70%

LOANS HELD FOR INVESTMENT AT CARRYING VALUE - Narrative (Details)	9 Months Ended	12 Months Ended
	Sep. 30, 2022 USD ($) loan	Dec. 31, 2021 USD ($) loan
LOANS HELD FOR INVESTMENT AT CARRYING VALUE [Abstract]
Number of loans held for investments in portfolio (in loans) \| loan	10	12
Loans held for investments aggregate commitments	$ 401,100,000	$ 324,300,000
Loans held at carrying value, outstanding principal	349,337,390	$ 270,841,715
Loans held at carrying value, outstanding principal fundings	$ 139,600,000
Percentage of loans held at carrying value with floating interest rates	39.00%	48.00%
London Interbank Offered Rate (LIBOR)
Loans and Leases Receivable Disclosure [Line Items]
Interest rate floor	1.00%
Secured Overnight Financing Rate (SOFR)
Loans and Leases Receivable Disclosure [Line Items]
Interest rate floor	1.00%
Prime Rate
Loans and Leases Receivable Disclosure [Line Items]
Interest rate floor	4.40%

LOANS HELD FOR INVESTMENT AT CARRYING VALUE - Loans Held at Carrying Value (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Loans and Leases Receivable Disclosure [Line Items]
Outstanding Principal	$ 349,337,390	$ 270,841,715
Original Issue Discount	(10,173,360)	(13,678,219)
Carrying Value	$ 339,164,030	$ 257,163,496
Weighted Average Remaining Life (Years)	2 years 8 months 12 days	3 years 4 months 24 days
Senior term loans
Loans and Leases Receivable Disclosure [Line Items]
Outstanding Principal	$ 349,337,390	$ 270,841,715
Original Issue Discount	(10,173,360)	(13,678,219)
Carrying Value	$ 339,164,030	$ 257,163,496
Weighted Average Remaining Life (Years)	2 years 8 months 12 days	3 years 4 months 24 days

LOANS HELD FOR INVESTMENT AT CARRYING VALUE - Changes in Loans Held at Carrying Value (Details)	9 Months Ended
	Sep. 30, 2022 USD ($)
Principal
Total loans held at carrying value, principal, beginning balance	$ 270,841,715
New fundings	139,571,920
Accretion of original issue discount	0
Loan repayments	(52,014,211)
Sale of loans	(10,000,000)
PIK interest	2,768,252
Loan amortization payments	(1,830,286)
Total loans held at carrying value, principal, ending balance	349,337,390
Original Issue Discount
Total loans held at carrying value, original issue discount, beginning balance	(13,678,219)
New fundings, original issue discount	(5,128,400)
Accretion of original issue discount, original issue discount	8,633,259
Loan repayments, original issue discount	0
Sale of loans, original issue discount	0
PIK interest, original issue discount	0
Loan amortization payments, original issue discount	0
Total loans held at carrying value, original issue discount, ending balance	(10,173,360)
Carrying Value
Total loans held at carrying value, carrying value, beginning balance	257,163,496
New fundings, carrying value	134,443,520
Accretion of original issue discount, carrying value	8,633,259
Loan repayments, carrying value	(52,014,211)
Sale of loans, carrying value	(10,000,000)
PIK Interest, carrying value	2,768,252
Loan amortization payments, carrying value	(1,830,286)
Total loans held at carrying value, carrying value, ending balance	$ 339,164,030

LOANS HELD FOR INVESTMENT AT CARRYING VALUE - Loans Held at Carrying Value portfolio (Details) - USD ($)	9 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Loans held at investment, Carrying Amount [Abstract]
Outstanding Principal	$ 349,337,390	$ 270,841,715
Original Issue Discount	(10,173,360)	(13,678,219)
Carrying Value	$ 339,164,030	$ 257,163,496
Private Co. C \| Base Rate
Loans held at investment, Carrying Amount [Abstract]
Interest Rate	9.00%
Private Co. C \| London Interbank Offered Rate (LIBOR)
Loans held at investment, Carrying Amount [Abstract]
Interest Rate	4.00%
Private Co. C \| PIK Interest Rate
Loans held at investment, Carrying Amount [Abstract]
Interest Rate	4.00%
Private Co. C \| PA \| C, D
Loans held at investment, Carrying Amount [Abstract]
Outstanding Principal	$ 24,159,078
Original Issue Discount	(610,238)
Carrying Value	$ 23,548,840
Interest Rate	18.50%
Sub. of Private Co. G \| Base Rate
Loans held at investment, Carrying Amount [Abstract]
Interest Rate	10.25%
Sub. of Private Co. G \| London Interbank Offered Rate (LIBOR)
Loans held at investment, Carrying Amount [Abstract]
Interest Rate	4.50%
Sub. of Private Co. G \| Multi State \| C, D
Loans held at investment, Carrying Amount [Abstract]
Outstanding Principal	$ 67,912,444
Original Issue Discount	(1,953,328)
Carrying Value	$ 65,959,116
Interest Rate	16.50%
Public Co. F \| Base Rate
Loans held at investment, Carrying Amount [Abstract]
Interest Rate	8.60%
Public Co. F \| Multi State \| C, D
Loans held at investment, Carrying Amount [Abstract]
Outstanding Principal	$ 86,600,000
Original Issue Discount	(854,133)
Carrying Value	$ 85,745,867
Interest Rate	8.60%
Sub. of Private Co. H \| Base Rate
Loans held at investment, Carrying Amount [Abstract]
Interest Rate	15.00%
Sub. of Private Co. H \| IL \| C
Loans held at investment, Carrying Amount [Abstract]
Outstanding Principal	$ 5,781,250
Original Issue Discount	(46,712)
Carrying Value	$ 5,734,538
Interest Rate	15.00%
Private Co. K \| Base Rate
Loans held at investment, Carrying Amount [Abstract]
Interest Rate	12.00%
Private Co. K \| London Interbank Offered Rate (LIBOR)
Loans held at investment, Carrying Amount [Abstract]
Interest Rate	1.00%
Private Co. K \| MA \| C, D
Loans held at investment, Carrying Amount [Abstract]
Outstanding Principal	$ 10,765,379
Original Issue Discount	(915,708)
Carrying Value	$ 9,849,671
Interest Rate	15.00%
Private Co. I \| Base Rate
Loans held at investment, Carrying Amount [Abstract]
Interest Rate	12.00%
Private Co. I \| London Interbank Offered Rate (LIBOR)
Loans held at investment, Carrying Amount [Abstract]
Interest Rate	1.00%
Private Co. I \| PIK Interest Rate
Loans held at investment, Carrying Amount [Abstract]
Interest Rate	2.50%
Private Co. I \| MD \| C, D
Loans held at investment, Carrying Amount [Abstract]
Outstanding Principal	$ 10,550,781
Original Issue Discount	(177,777)
Carrying Value	$ 10,373,004
Interest Rate	17.60%
Private Co. J \| Base Rate
Loans held at investment, Carrying Amount [Abstract]
Interest Rate	12.00%
Private Co. J \| London Interbank Offered Rate (LIBOR)
Loans held at investment, Carrying Amount [Abstract]
Interest Rate	1.00%
Private Co. J \| PIK Interest Rate
Loans held at investment, Carrying Amount [Abstract]
Interest Rate	4.00%
Private Co. J \| MO \| C, D
Loans held at investment, Carrying Amount [Abstract]
Outstanding Principal	$ 23,568,458
Original Issue Discount	(573,986)
Carrying Value	$ 22,994,472
Interest Rate	19.10%
Sub. of Public Co. H
Loans held at investment, Carrying Amount [Abstract]
Interest Rate	9.80%
Sub. of Public Co. H \| Base Rate
Loans held at investment, Carrying Amount [Abstract]
Interest Rate	9.80%
Sub. of Public Co. H \| Multi State \| C, D
Loans held at investment, Carrying Amount [Abstract]
Outstanding Principal	$ 60,000,000
Original Issue Discount	(1,910,204)
Carrying Value	$ 58,089,796
Interest Rate	9.80%
Private Co. L
Loans held at investment, Carrying Amount [Abstract]
Outstanding Principal	$ 82,500,000
Private Co. L \| Base Rate
Loans held at investment, Carrying Amount [Abstract]
Interest Rate	12.00%
Private Co. L \| Multi State \| C, D
Loans held at investment, Carrying Amount [Abstract]
Outstanding Principal	$ 50,000,000
Original Issue Discount	(2,303,571)
Carrying Value	$ 47,696,429
Interest Rate	12.00%
Sub. of Public Co. M \| Base Rate
Loans held at investment, Carrying Amount [Abstract]
Interest Rate	9.50%
Sub. of Public Co. M \| Multi State \| C, D
Loans held at investment, Carrying Amount [Abstract]
Outstanding Principal	$ 10,000,000
Original Issue Discount	(827,703)
Carrying Value	$ 9,172,297
Interest Rate	9.50%

LOAN RECEIVABLE AT CARRYING VALUE - Narrative (Details)	9 Months Ended
LOAN RECEIVABLE AT CARRYING VALUE - Narrative (Details)	Sep. 30, 2022 USD ($) loan	Dec. 31, 2021 USD ($) loan
Proceeds from Sale and Collection of Loans Receivable [Abstract]
Number of portfolio loans (in loans) \| loan	1	1
Loans receivable at carrying value aggregate commitments	$ 4,000,000	$ 4,000,000
Loans receivable at principal	2,222,339	$ 2,533,266
Proceeds from repayments of outstanding principal	$ 300,000

LOAN RECEIVABLE AT CARRYING VALUE - Changes in Loans Receivable (Details)	9 Months Ended
	Sep. 30, 2022 USD ($)
Principal
Total loans receivable at carrying value, principal, beginning balance	$ 2,533,266
Principal repayment of loans	(337,114)
Accretion of original issue discount	0
PIK interest	26,187
Total loans receivable at carrying value, principal, ending balance	2,222,339
Original Issue Discount
Total loans receivable at carrying value, original issue discount, beginning balance	(2,678)
Principal repayment of loans, original issue discount	0
Accretion of original issue discount, original issue discount	805
PIK interest	0
Total loans receivable at carrying value, original issue discount, ending balance	(1,873)
Carrying Value
Total loans receivable at carrying value, carrying value, beginning balance	2,530,588
Principle repayment of loans, carrying value	(337,114)
Accretion of original issue discount, carrying value	805
PIK interest	26,187
Total loans receivable at carrying value, carrying value, ending balance	$ 2,220,466

CURRENT EXPECTED CREDIT LOSSES - Narrative (Details) - USD ($)	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021
Financing Receivable, Past Due [Line Items]
Loans and loans receivable at carrying value	$ 5,466,194		$ 2,431,558
CECL Reserve
Financing Receivable, Past Due [Line Items]
Loans and loans receivable at carrying value	$ 6,154,870	$ 5,612,912	$ 3,114,735
Basis points of total loans and loans receivable at carrying value	1.80%		1.20%
Loans receivable at carrying value, commitment balance	$ 341,400,000		$ 259,700,000
CECL Reserve \| Outstanding
Financing Receivable, Past Due [Line Items]
Loans and loans receivable at carrying value	5,466,194	5,018,072	2,431,558
CECL Reserve \| Unfunded
Financing Receivable, Past Due [Line Items]
Loans and loans receivable at carrying value	$ 688,676	$ 594,840	$ 683,177

- Definition

Amount of allowance for credit loss on financing receivable. Excludes allowance for financing receivable covered under loss sharing agreement.

+ References + Details

CURRENT EXPECTED CREDIT LOSSES - Financing Receivable, Allowance for Credit Loss (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance			$ 2,431,558
Provision for current expected credit losses	$ 541,958	$ 660,612	3,040,135	$ 1,372,498
Ending balance	5,466,194		5,466,194
CECL Reserve
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	5,612,912		3,114,735
Provision for current expected credit losses	541,958		3,040,135
Write-offs	0		0
Recoveries	0		0
Ending balance	6,154,870		6,154,870
Outstanding \| CECL Reserve
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	5,018,072		2,431,558
Provision for current expected credit losses	448,122		3,034,636
Write-offs	0		0
Recoveries	0		0
Ending balance	5,466,194		5,466,194
Unfunded \| CECL Reserve
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	594,840		683,177
Provision for current expected credit losses	93,836		5,499
Write-offs	0		0
Recoveries	0		0
Ending balance	$ 688,676		$ 688,676

- Definition

Amount of allowance for credit loss on financing receivable. Excludes allowance for financing receivable covered under loss sharing agreement.

+ References + Details

CURRENT EXPECTED CREDIT LOSSES - Financing Receivable Credit Quality Indicators (Details)	Sep. 30, 2022 USD ($)
Financing Receivable, Credit Quality Indicator [Line Items]
2022	$ 92,928,263
2021	222,686,927
2020	25,769,306
Total	341,384,496
1
Financing Receivable, Credit Quality Indicator [Line Items]
2022	0
2021	0
2020	0
Total	0
2
Financing Receivable, Credit Quality Indicator [Line Items]
2022	26,209,866
2021	59,536,000
2020	0
Total	85,745,866
3
Financing Receivable, Credit Quality Indicator [Line Items]
2022	66,718,397
2021	129,783,451
2020	25,769,306
Total	222,271,154
4
Financing Receivable, Credit Quality Indicator [Line Items]
2022	0
2021	33,367,476
2020	0
Total	33,367,476
5
Financing Receivable, Credit Quality Indicator [Line Items]
2022	0
2021	0
2020	0
Total	$ 0

INTEREST RECEIVABLE (Details) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Interest Receivable and Other Assets [Abstract]
Interest receivable	$ 3,811,696	$ 3,562,566
PIK receivable	490,284	554,357
Unused fees receivable	140,700	296,015
Total interest receivable	$ 4,442,680	$ 4,412,938

INTEREST RESERVE - Narrative (Details)	3 Months Ended		9 Months Ended		12 Months Ended
INTEREST RESERVE - Narrative (Details)	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($) loan	Sep. 30, 2021 USD ($)	Dec. 31, 2021 loan
INTEREST RESERVE [Abstract]
Number of loans included in loan funded interest reserve (in loans) \| loan			3		7
Interest reserve disbursed \| $	$ 3,031,143	$ 1,819,036	$ 8,626,799	$ 2,521,923

INTEREST RESERVE - Changes in Interest Reserve (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
INTEREST RESERVE [Abstract]
Beginning reserves	$ 5,186,615	$ 5,547,863	$ 4,782,271	$ 1,325,750
New reserves	3,970,958	4,525,468	9,970,958	9,450,468
Reserves disbursed	(3,031,143)	(1,819,036)	(8,626,799)	(2,521,923)
Ending reserves	$ 6,126,430	$ 8,254,295	$ 6,126,430	$ 8,254,295

DEBT - Narrative (Details)				1 Months Ended	3 Months Ended			9 Months Ended
DEBT - Narrative (Details)	Apr. 29, 2022 USD ($)	Nov. 03, 2021 USD ($) Intallment	May 07, 2021 USD ($)	Jul. 31, 2020 USD ($)	Sep. 30, 2022 USD ($)	Jun. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Dec. 31, 2021 USD ($)
Line of Credit Facility [Line Items]
Increase limit	$ 100,000,000.0
Unused fee expense					$ 0			$ 60,417
Amortization of deferred financing costs					206,588			714,471	$ 0
Interest expense					1,437,500			4,316,319
2027 Senior Notes
Line of Credit Facility [Line Items]
Debt instrument, stated percentage		5.75%
Unused fee expense					0			0
Amortization of deferred financing costs					166,458			492,216
Interest expense					1,437,500			$ 4,296,527
Debt instrument, aggregate principal		$ 100,000,000
Net proceeds from offering		$ 97,000,000
Redemption price percentage								100.00%
Redemption price percentage, change of control triggering event								101.00%
Debt service coverage ratio		150.00%
Percentage of debt in aggregate principal		60.00%
Secured debt of percentage in aggregate principal		25.00%
Revolving Credit Facility
Line of Credit Facility [Line Items]
Unused fee expense					0			$ 60,417
Amortization of deferred financing costs					0			154,645
Interest expense					0		$ 0	19,792	$ 0
Revolving Credit Facility \| Secured Debt
Line of Credit Facility [Line Items]
Revolving credit loan commitment				$ 40,000,000.0
Revolving credit interest rate				8.00%
Revolving Credit Facility \| Line of Credit
Line of Credit Facility [Line Items]
Revolving credit loan commitment	$ 60,000,000.0
Debt instrument, stated percentage	4.50%
Unused fee expense	$ 500,000
Unused line fee percentage	0.25%
Amortization of deferred financing costs					$ 40,130			$ 67,610
Minimum liquidity covenant	$ 5,000,000.0
Minimum annual debt service coverage covenant	1.5
Maximum secured debt to total assets percentage covenant	25.00%
Revolving Credit Facility \| Line of Credit \| Base Rate
Line of Credit Facility [Line Items]
Basis spread on variable interest rate	0.50%
First Amendment Revolving Credit Facility \| Secured Debt
Line of Credit Facility [Line Items]
Revolving credit loan commitment			$ 50,000,000.0
Revolving credit interest rate			6.00%
Second Amendment Revolving Credit Facility \| Secured Debt
Line of Credit Facility [Line Items]
Revolving credit loan commitment										$ 75,000,000.0
Unused fee expense						$ 100,000
Unused line fee percentage		0.25%
Revolving credit interest rate		4.75%
One-time commitment fee percentage		0.25%
Number of installments (in installments) \| Intallment		3
One-time commitment fee		$ 187,500
Acceleration of remaining deferred financing costs						$ 100,000

DEBT - Schedule of Maturities of Long-Term Debt (Details) - 2027 Senior Notes	Sep. 30, 2022 USD ($)
Line of Credit Facility [Line Items]
2022 (remaining)	$ 0
2023	0
2024	0
2025	0
2026	0
Thereafter	100,000,000
Long-Term Debt, Total	$ 100,000,000

- Definition

Amount, excluding unamortized premium (discount) and debt issuance cost, of long-term debt. Excludes lease obligation.

+ References + Details

DEBT - Summary Of Interest Expense (Details) - USD ($)	3 Months Ended		9 Months Ended
DEBT - Summary Of Interest Expense (Details) - USD ($)	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Line of Credit Facility [Line Items]
Interest expense	$ 1,437,500		$ 4,316,319
Unused fee expense	0		60,417
Amortization of deferred financing and offering costs	206,588		714,471	$ 0
Total interest expense	1,644,088	$ 0	5,091,207	0
Revolving Credit Facility
Line of Credit Facility [Line Items]
Interest expense	0		0
Unused fee expense	0		0
Amortization of deferred financing and offering costs	40,130		67,610
Total interest expense	40,130		67,610
Revolving Credit Facility
Line of Credit Facility [Line Items]
Interest expense	0	$ 0	19,792	$ 0
Unused fee expense	0		60,417
Amortization of deferred financing and offering costs	0		154,645
Total interest expense	0		234,854
2027 Senior Notes
Line of Credit Facility [Line Items]
Interest expense	1,437,500		4,296,527
Unused fee expense	0		0
Amortization of deferred financing and offering costs	166,458		492,216
Total interest expense	$ 1,603,958		$ 4,788,743

COMMITMENTS AND CONTINGENCIES (Details) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Total original loan commitments	$ 502,184,382	$ 419,198,125
Less: drawn commitments	(446,023,223)	(363,659,505)
Total undrawn commitments	$ 56,161,159	$ 55,538,620

SHAREHOLDERS' EQUITY - Narrative (Details)									1 Months Ended	3 Months Ended		9 Months Ended		12 Months Ended
SHAREHOLDERS' EQUITY - Narrative (Details)	Apr. 05, 2022 USD ($)	Jan. 19, 2022 USD ($) shares	Jan. 10, 2022 USD ($) $ / shares shares	Jul. 06, 2021 USD ($) $ / shares shares	Jun. 28, 2021 USD ($) $ / shares shares	Mar. 26, 2021 USD ($) $ / shares shares	Mar. 23, 2021 USD ($) $ / shares shares	Jan. 25, 2021	Jan. 31, 2022 $ / shares shares	Sep. 30, 2022 USD ($) $ / shares shares	Sep. 30, 2021 USD ($) $ / shares shares	Sep. 30, 2022 USD ($) $ / shares shares	Sep. 30, 2021 USD ($) $ / shares shares	Dec. 31, 2021 USD ($) $ / shares shares	Jun. 30, 2022 shares	Jun. 30, 2021 shares	Dec. 31, 2020 shares
Class of Stock [Line Items]
Preferred stock, authorized (in shares)										10,000		10,000		10,000
Preferred stock, issued (in shares)										125		125		125
Preferred stock, par value (in usd per share) \| $ / shares										$ 0.01		$ 0.01		$ 0.01
Preferred stock, outstanding (in shares)										125		125		125
Net proceeds \| $							$ 123,900,000
Shares sold in offering (in shares)		3,291,832	3,000,000
Offering price per share (in dollars per share) \| $ / shares			$ 20.50
Proceeds from stock offering \| $		$ 63,000,000.0	$ 61,500,000
Payments of stock issuance costs \| $		$ 67,500,000
Granted (in shares)										0	0	742,000	689,200
Granted (in dollars per share) \| $ / shares									$ 20.18	$ 0	$ 0	$ 1.46	$ 1.31
Options outstanding (in shares)										2,286,572	1,604,236	2,286,572	1,604,236	1,604,236	2,316,106	1,613,098	926,898
Share based compensation \| $										$ 100,000	$ 100,000	$ 1,200,000	$ 1,700,000
Restricted Stock
Class of Stock [Line Items]
Restricted stock, granted (in shares)										0	56,285	8,296	56,285
Awards outstanding (in shares)										64,581		64,581		56,285
Stock options
Class of Stock [Line Items]
Vesting period									4 years
2020 Plan
Class of Stock [Line Items]
Granted (in shares)									742,000
Shares of common stock outstanding (in shares)										2,350,815		2,350,815
Options outstanding (in shares)										2,287,472		2,287,472
Share limit (in shares)										2,793,288		2,793,288
Increase in share limit (in shares)										50,647
2020 Plan \| Restricted Stock
Class of Stock [Line Items]
Restricted stock, granted (in shares)									8,296
Vesting period									4 years
Vesting percentage									33.00%
Awards outstanding (in shares)										63,343		63,343
IPO
Class of Stock [Line Items]
Reduction of shares issued due to fractional shares based on the public offering price (in shares)										15		15
Reduction of shares outstanding due to fractional shares based on the public offering price (in shares)										15		15
Gross proceeds from offering \| $							118,800,000
Underwriting commissions \| $							8,300,000
Expenses incurred \| $							$ 3,100,000
Over-Allotment Option
Class of Stock [Line Items]
Issuance of common stock, net of offering costs (in shares)				269,650
Common stock issued, price per share (in dollars per share) \| $ / shares				$ 20.50
Gross proceeds from offering \| $				$ 5,500,000		$ 17,800,000
Underwriting commissions \| $				300,000		$ 1,200,000
Net proceeds \| $				$ 5,200,000
Shares sold in offering (in shares)		291,832	450,000
Underwriting commissions \| $		$ 3,500,000
Payments of stock issuance costs \| $		$ 1,000,000.0
Additional Offering
Class of Stock [Line Items]
Issuance of common stock, net of offering costs (in shares)					2,750,000
Common stock issued, price per share (in dollars per share) \| $ / shares					$ 20.50
Gross proceeds from offering \| $					$ 56,400,000
Underwriting commissions \| $					3,100,000
Expenses incurred \| $					700,000
Net proceeds \| $					$ 52,600,000
Shelf Registration
Class of Stock [Line Items]
Aggregate offering price \| $	$ 1,000,000,000.0
Open Market Sale
Class of Stock [Line Items]
Shares sold in offering (in shares)										506,466		621,398
Proceeds from stock offering \| $										$ 9,000,000.0		$ 10,400,000
Aggregate offering price \| $	$ 75,000,000.0
Commission percentage	3.00%
Offering price per share (in dollars per share) \| $ / shares										$ 18.35		$ 18.30
Series A Preferred Stock
Class of Stock [Line Items]
Preferred stock, authorized (in shares)										10,000		10,000		10,000
Preferred stock, issued (in shares)										125		125		125
Preferred stock, dividend rate												12.00%		12.00%
Preferred stock, liquidation preference (in dollars per share) \| $ / shares										$ 1,000		$ 1,000		$ 1,000
Preferred stock, redemption price (in dollars per share) \| $ / shares										$ 1,000		$ 1,000		$ 1,000
Preferred stock, redemption amount \| $										$ 125,000		$ 125,000		$ 125,000
Preferred stock, outstanding (in shares)										125		125		125
Common Stock
Class of Stock [Line Items]
Stock split conversion ratio								7
Common Stock \| IPO
Class of Stock [Line Items]
Issuance of common stock, net of offering costs (in shares)							6,250,000
Common stock issued, price per share (in dollars per share) \| $ / shares							$ 19.00
Common Stock \| Over-Allotment Option
Class of Stock [Line Items]
Issuance of common stock, net of offering costs (in shares)						937,500
Common stock issued, price per share (in dollars per share) \| $ / shares						$ 19.00

SHAREHOLDERS' EQUITY - Share-based Payment Arrangement, Option, Activity (Details) - shares	9 Months Ended	12 Months Ended
	Sep. 30, 2022	Dec. 31, 2021	Jun. 30, 2022	Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2020
Equity [Abstract]
Non-vested	300,652	183,114
Vested	2,068,469	1,449,518
Forfeited	(82,549)	(28,396)
Balance	2,286,572	1,604,236	2,316,106	1,604,236	1,613,098	926,898

SHAREHOLDERS' EQUITY - Assumption used in the Option Pricing Model of Options Granted (Details) - 2020 Plan - Stock options	9 Months Ended
	Sep. 30, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected forfeiture rate	0.00%
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility	40.00%
Expected dividend yield	10.00%
Risk-free interest rate	0.50%
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility	50.00%
Expected dividend yield	20.00%
Risk-free interest rate	2.00%

SHAREHOLDERS' EQUITY - Summary of Stock Option Activity (Details) - $ / shares	1 Months Ended	3 Months Ended		9 Months Ended
	Jan. 31, 2022	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Option Activity [Roll Forward]
Beginning balance (in shares)	1,604,236	2,316,106	1,613,098	1,604,236	926,898
Granted (in shares)		0	0	742,000	689,200
Exercised (in shares)		(5,511)	0	(5,511)	0
Forfeited (in shares)		(24,023)	(8,862)	(54,153)	(11,862)
Ending balance (in shares)		2,286,572	1,604,236	2,286,572	1,604,236
Weighted-average grant date fair value per option
Beginning balance (in dollars per share)	$ 1.08	$ 1.21	$ 1.08	$ 1.08	$ 0.91
Granted - exercise price (in dollars per share)	$ 20.18	0	0	1.46	1.31
Exercised (in dollars per share)		0.90	0	0.90	0
Forfeited (in dollars per share)		1.20	0.90	1.12	1.01
Ending balance (in dollars per share)		$ 1.21	$ 1.08	$ 1.21	$ 1.08

SHAREHOLDERS' EQUITY - Schedule of Nonvested Share Activity (Details) - Restricted Stock - shares	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Non-vested (in shares)	64,581		64,581		56,285
Vested (in shares)	0	0	0	0	0
Forfeited (in shares)	(1,238)	0	(1,238)	0	0
Balance (in shares)	63,343	56,285	63,343	56,285	56,285	64,581	0	0

SHAREHOLDERS' EQUITY - Share-Based Payment Arrangement, Restricted Stock and Restricted Stock Unity, Activity (Details) - Restricted Stock - shares	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Beginning balance (in shares)	64,581	0	56,285	0	0
Granted (in shares)	0	56,285	8,296	56,285
Exercised (in shares)	0	0	0	0	0
Forfeited (in shares)	(1,238)	0	(1,238)	0	0
Ending balance (in shares)	63,343	56,285	63,343	56,285	56,285

EARNINGS PER SHARE (Details) - USD ($)	3 Months Ended		9 Months Ended
EARNINGS PER SHARE (Details) - USD ($)	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Earnings Per Share Reconciliation [Abstract]
Net income	$ 11,480,519	$ 7,930,680	$ 32,994,312	$ 13,959,222
Divided by:
Basic weighted average shares of common stock outstanding (in shares)	20,019,760	16,402,984	19,687,730	12,368,977
Diluted weighted average shares of common stock outstanding (in shares)	20,112,033	16,776,648	19,780,003	12,742,641
Basic weighted average earnings per common share (in dollars per share)	$ 0.57	$ 0.48	$ 1.68	$ 1.13
Diluted weighted average earnings per common share (in dollars per share)	$ 0.57	$ 0.47	$ 1.67	$ 1.10

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

INCOME TAX (Details) - USD ($)	3 Months Ended		9 Months Ended
INCOME TAX (Details) - USD ($)	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Effective Income Tax Rate Reconciliation, Amount [Abstract]
Income tax expense	$ 167,164	$ 0	$ 349,763	$ 0
Exercise tax as a percentage of undistributed ordinary income and net capital gains	4.00%		4.00%
Unrecognized tax benefits	$ 0		$ 0

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

FAIR VALUE - Fair Value, Assets measured on Recurring and Nonrecurring Basis (Details) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loans held at fair value	$ 94,076,146	$ 77,096,319
Total	94,076,146	77,096,319
Level 1
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loans held at fair value	0	0
Total	0	0
Level 2
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loans held at fair value	0	0
Total	0	0
Level 3
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loans held at fair value	94,076,146	77,096,319
Total	$ 94,076,146	$ 77,096,319

FAIR VALUE - Fair Value Measurements of Changes in Loans using Level 3 inputs (Details)	9 Months Ended
	Sep. 30, 2022 USD ($)
Changes in Loans Using Level 3 Inputs [Abstract]
Total loans held at fair value, fair value, beginning balance	$ 77,096,319
Change in unrealized (losses) gains on loans at fair value, net	(1,561,890)
Additional fundings	18,737,988
Original issue discount and other discounts, net of costs	(479,276)
Accretion of original issue discount	1,076,212
PIK interest	2,256,569
Total loans held at fair value, fair value, ending balance	94,076,146
Level 3
Changes in Loans Using Level 3 Inputs [Abstract]
Total loans held at fair value, fair value, beginning balance	77,096,319
Change in unrealized (losses) gains on loans at fair value, net	(1,561,890)
Additional fundings	18,737,988
Original issue discount and other discounts, net of costs	(479,276)
Loan repayments	(1,960,000)
Loan amortization payments	(1,089,776)
Accretion of original issue discount	1,076,212
PIK interest	2,256,569
Total loans held at fair value, fair value, ending balance	$ 94,076,146

FAIR VALUE - Narrative (Details) - USD ($)	9 Months Ended
FAIR VALUE - Narrative (Details) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Defined Benefit Plan Disclosure [Line Items]
Change in unrealized (losses) gains on loans at fair value, net	$ (1,561,890)
Debt securities held at fair value	0	$ 15,881,250
Change in accumulated other comprehensive income, fair value	168,750
Level 3
Defined Benefit Plan Disclosure [Line Items]
Change in unrealized (losses) gains on loans at fair value, net	(1,561,890)
Debt securities held at fair value	$ 0	$ 0

FAIR VALUE - Fair Value measurement Inputs and Valuation Techniques (Details) - Level 3	Sep. 30, 2022 USD ($)	Dec. 31, 2021 USD ($)
Fair Value [Abstract]
Loans held for investment, fair value	$ 94,076,146	$ 77,096,319
Senior term loans
Fair Value [Abstract]
Loans held for investment, fair value	$ 94,076,146	$ 77,096,319
Senior term loans \| Yield Analysis \| Market Yield \| Minimum
Estimated Range and Weighted Average [Abstract]
Market yield percentage	0.2648	0.1771
Senior term loans \| Yield Analysis \| Market Yield \| Maximum
Estimated Range and Weighted Average [Abstract]
Market yield percentage	0.1792	0.2096
Senior term loans \| Yield Analysis \| Market Yield \| Weighted Average
Estimated Range and Weighted Average [Abstract]
Market yield percentage	0.1925	0.1822

FAIR VALUE - Fair Value Measurement of Loans Held at Fair Value (Details)	9 Months Ended
	Sep. 30, 2022 USD ($)
Principal
Total debt securities held at fair value, beginning balance	$ 15,000,000
Realized (losses) gains on securities at fair value, net	0
Change in accumulated other comprehensive income	0
Sale of securities	(15,000,000)
Total debt securities held at fair value, ending balance	0
Original Issue Discount
Total debt securities held at fair value, original issue discount, beginning balance	1,050,000
Realized gains (losses) on securities at fair value, net, original issue discount	(150,000)
Change in accumulated other comprehensive income, original issue discount	0
Sale of securities, original issue discount	(900,000)
Total debt securities held at fair value, original issue discount, ending balance	0
Unrealized Gains (Losses)
Total debt securities held at fair value, unrealized gains (losses), beginning balance	(168,750)
Realized gains (losses) on securities at fair value, net, unrealized gains (losses)	0
Change in accumulated other comprehensive income, unrealized gains (losses)	168,750
Sale of securities, unrealized gains (losses)	0
Total debt securities held at fair value, unrealized gains (losses), ending balance	0
Fair Value
Total debt securities held at fair value, fair value, beginning balance	15,881,250
Realized gains (losses) on securities at fair value, net, fair value	(150,000)
Change in accumulated other comprehensive income, fair value	168,750
Sale of securities, fair value	(15,900,000)
Total debt securities held at fair value, fair value, ending balance	$ 0

FAIR VALUE - Fair Value, Liabilities Measured on Recurring and Nonrecurring Basis (Details) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Defined Benefit Plan Disclosure [Line Items]
Debt securities held at fair value	$ 0	$ 15,881,250
Level 1
Defined Benefit Plan Disclosure [Line Items]
Debt securities held at fair value	0	0
Level 2
Defined Benefit Plan Disclosure [Line Items]
Debt securities held at fair value	0	15,881,250
Level 3
Defined Benefit Plan Disclosure [Line Items]
Debt securities held at fair value	$ 0	$ 0

FAIR VALUE - Book Value and Fair Value of the Financial Instruments (Details)	Sep. 30, 2022 USD ($)
Carrying Value
Financial assets:
Cash and cash equivalents	$ 36,319,623
Loans held for investment at carrying value	339,164,030
Loan receivable at carrying value	2,220,466
Liabilities, Fair Value Disclosure [Abstract]
Senior unsecured notes, net	96,964,872
Fair Value
Financial assets:
Cash and cash equivalents	36,319,623
Loans held for investment at carrying value	334,334,871
Loan receivable at carrying value	2,147,890
Liabilities, Fair Value Disclosure [Abstract]
Senior unsecured notes, net	$ 85,034,060

RELATED PARTY TRANSACTIONS - Narrative (Details)	3 Months Ended		9 Months Ended
RELATED PARTY TRANSACTIONS - Narrative (Details)	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($) loan	Sep. 30, 2021 USD ($)	Apr. 29, 2022 USD ($)	Mar. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Related Party Transaction [Line Items]
Incentive fees earned	$ 2,938,598	$ 1,769,207	$ 9,312,462	$ 3,873,984
Due to affiliate	$ 17,640		$ 17,640				$ 0
Number of co-invested loans held \| loan			5
Increase limit					$ 100,000,000.0
Managers
Related Party Transaction [Line Items]
Frequency of management fees payment			quarterly
Percentage of base management fees	0.375%		0.375%				0.4375%
Percentage of aggregate amount of any outside fees	50.00%		50.00%				100.00%
Due to affiliate	$ 5,200,000		$ 5,200,000				$ 4,100,000
Affiliated Entity
Related Party Transaction [Line Items]
Due to affiliate	17,640		17,640				$ 0
Sale of assigned rights	$ 0	$ 0	$ 0	$ 2,300,000
Affiliated Entity \| All Parties
Related Party Transaction [Line Items]
Increase limit						$ 100,000,000.0
Affiliated Entity \| Company
Related Party Transaction [Line Items]
Increase limit						26,600,000
Affiliated Entity \| Flower Loan Holdco LLC
Related Party Transaction [Line Items]
Increase limit						$ 15,000,000.0

RELATED PARTY TRANSACTIONS - Schedule of Related Party Transactions (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Related Party Transactions [Abstract]
Management fees	$ 1,318,563	$ 1,030,718	$ 3,869,023	$ 2,301,924
Less: outside fees earned	(432,426)	(256,989)	(1,307,969)	(677,439)
Base management fees	886,137	773,729	2,561,054	1,624,485
Incentive fees earned	2,938,598	1,769,207	9,312,462	3,873,984
General and administrative expenses reimbursable to Manager	910,243	625,711	2,790,846	1,415,217
Total	$ 4,734,978	$ 3,168,647	$ 14,664,362	$ 6,913,686

- Definition

Direct costs arising from transactions with related parties who are not affiliates or joint Ventures. These costs are categorized as cost of goods sold.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iv))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.2)
-URI https://asc.fasb.org/extlink&oid=126953954&loc=SL114868664-224227

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(5))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(C))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(k)(1))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(5))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iii)(B))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iv))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

+ Details

DIVIDENDS AND DISTRIBUTIONS (Details) - Regular Cash Dividend - $ / shares	3 Months Ended						9 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2022	Sep. 30, 2021
Dividends Payable [Line Items]
Common Share Distribution Amount (in dollars per share)	$ 0.56	$ 0.56	$ 0.55	$ 0.43	$ 0.38	$ 0.36	$ 1.67	$ 1.17
Taxable Ordinary Income (in dollars per share)	0.56	0.56	0.55	0.43	0.38	0.36	1.67	1.17
Return of Capital (in dollars per share)	0	0	0	0	0	0	0	0
Section 199A Dividends (in dollars per share)	$ 0.56	$ 0.56	$ 0.55	$ 0.43	$ 0.38	$ 0.36	$ 1.67	$ 1.17

SUBSEQUENT EVENTS (Details) - USD ($)	1 Months Ended		9 Months Ended
SUBSEQUENT EVENTS (Details) - USD ($)	Nov. 08, 2022	Oct. 31, 2022	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Subsequent Event [Line Items]
Principal repayment of loans			$ 32,227,904	$ 22,168,395
Issuance of and fundings on loans			127,248,748	$ 156,345,116
Loans held at carrying value, outstanding principal			349,337,390		$ 270,841,715
Private Co. L
Subsequent Event [Line Items]
Loans held at carrying value, outstanding principal			$ 82,500,000
Subsequent Event
Subsequent Event [Line Items]
Principal repayment of loans		$ 86,600,000
Issuance of and fundings on loans	$ 9,200,000
Prepayment premium		100,000
Make-whole premium		600,000
Subsequent Event \| Public Co. F
Subsequent Event [Line Items]
Principal repayment of loans	86,600,000
Subsequent Event \| Private Co. L
Subsequent Event [Line Items]
Loans held at carrying value, outstanding principal	63,000,000
Subsequent Event \| Sub. of Public Co. H
Subsequent Event [Line Items]
Increase (decrease) in commitment		30,000,000
Issuance of and fundings on loans		$ 7,800,000
Subsequent Event \| Sub. of Public Co. H \| Prime Rate
Subsequent Event [Line Items]
Spread on variable rate		5.80%
Interest rate floor		5.50%
Subsequent Event \| Borrower 1
Subsequent Event [Line Items]
Increase (decrease) in commitment	30,000,000
Subsequent Event \| Borrower 2
Subsequent Event [Line Items]
Increase (decrease) in commitment	$ (19,500,000)
Subsequent Event \| AFC and other lenders \| Sub. of Public Co. H
Subsequent Event [Line Items]
Increase (decrease) in commitment		$ 50,000,000